EMEA EDITION businesschief.eu
AUGUST 2020
The next generation of process automation
INNOVATION IN AUTOMATION
Most valuable EMEA digital technology brands
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FOREWORD
W
elcome to the August edition
Elsewhere, Conor Fennelly, LEVERIS
of Business Chief EMEA!
founder and CEO, discusses how the
This month’s cover features Chris
company is reinventing banking with its
Duddridge, Area Vice President and
innovative, cloud-native platform and
Managing Director at UiPath (UK and
Ciara Mullan, VP of Transition and
Ireland). Duddridge discusses
Transformation at T-Systems tells us
automation trends, innovation and the
about implementing transformation in a
impact of COVID-19. “What initially drew
challenging climate.
me to UiPath was its people and being a
In addition, we speak to Sankar
part of a new emerging technology
Krishnan, EVP and Industry Head,
sector which was growing faster than
Banking and Capital Markets,
any other I’d ever experienced.”
Capgemini, who discusses the impact
Other leaders that feature in the
of COVID-19 in EMEA for investor
magazine include Panasonic’s John
management. Furthermore, we learn
Harris, General Manager - Euro Tech
from Accenture how digitisation is
Strategy, Ian Woozley, Head of Supply
redefining HR, and the ways cloud
Chain Solutions and Jonathan Tucker,
platforms can help organisations stay
General Manager - Solutions &
ahead. Our Top 10, meanwhile, ranks
Engineering, providing their insight into
the most valuable digital technology
how the company builds, maintains and
brands in the EMEA region based on
expands its customer relationships
their market value.
using technology. “What I love about the
Do you have a story to share? If you would
organisation is the degree of autonomy
like to be featured in an upcoming issue of
we’re given to go and try something
Business Chief EMEA, please get in touch at
new. It’s very much a people before
georgia.wilson@bizclikmedia.com
products attitude,” comments Tucker.
Enjoy the read! b u s in e s s c hie f. e u
03
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PUBLISHED BY
EDITOR-IN-CHIEF
Georgia Wilson EDITORAL DIRECTOR
Matt High CREATIVE DIRECTOR
Steve Shipley CREATIVE TEAM
Oscar Hathaway Erin Hancox Sophia Forte Sophie-Ann Pinnell
PRODUCTION DIRECTORS
DIGITAL MARKETING EXECUTIVE
Georgia Allen Daniela Kianickovรก
Jack Grimshaw
PRODUCTION MANAGER
Owen Martin
Charlotte Clarke Caroline Whiteley
DIGITAL VIDEO DIRECTOR
DIGITAL MEDIA DIRECTOR
PROJECT DIRECTORS
Joshua S Peck
Jason Westgate
DIGITAL VIDEO PRODUCERS
OPERATIONS DIRECTOR
Kieran Waite Sam Kemp
Alex Barron
DIGITAL MARKETING MANAGER
Glen White
Shirin Sadr
PRESIDENT & CEO
MARKETING DIRECTOR
Leigh Manning b u s in e s s c hie f. e u
CONTENTS
14 UiPath
32 COVID-19: the impact on investor management in EMEA
HOW CLOUD PLATFORMS CAN REDEFINE HR OPERATIONS
DESIGNING A DIGITAL STRATEGY AND THE IMPACT OF COVID-19
44
54
82
AI:
DIGITAL TRANSFORMATION IN CORPORATE FINANCE
ENTERPRISE CHALLENGES & OPPORTUNITIES
68
96 Most valuable EMEA digital technology brands
116
136
ISG
Basefarm
150
164
DPR
Atom Bank
198 T-Systems
180 Panasonic
214
230
Leveris
TerraCycle
260
248
DHL Express South Africa
Absa Group
274
288
Arab National Bank
Sonae
306 324 Henkel
MED-EL
340
354
BH Telecom d.d.
Telkom
380 KAUST
368 Dr Soliman Fakeeh Hospital
396
410
Worten
State Street
424 438 Monedo Holding
Moneyfarm
452 Mastercard
482 466 Scandinavian
Vodafone Qatar
Tobacco Group
14
UiPath: INNOVATION IN AUTOMATION AND THE IMPACT OF COVID-19 WRITTEN BY
GEORGIA WILSON PRODUCED BY
BEN MALTBY
AUGUST 2020
15
b u s in e s s c hie f. e u
U i PAT H
Chris Duddridge, Area Vice President and Managing Director, UiPath (UK and Ireland), discusses automation trends, innovation and the impact of COVID-19
P
rior to joining UiPath, Chris Duddridge spent the past 20 years working within the HR, payroll and ERP software sales
market. Chris has previously worked for Sage and Deltek, before joining UiPath a year and a half ago as RVP for enterprise sales and is now Area Vice 16
President and Managing Director. “What initially drew me to UiPath was its people and being a part of a new emerging technology sector which was growing faster than any other I’d ever experienced. It also helped that RPA and intelligent automation had become pervasive across every industry and at every level within the business from the board agenda to the subject matter experts. I started off leading our enterprise sales team gaining a very quick and valuable induction to what was driving the agenda for automation from some of our largest clients. I’m now very lucky to represent UiPath UK & Ireland across all business functions from our sales engagements with new clients, but also our existing account management, Pre-Sales, Customer Success, and Partner
AUGUST 2020
17
b u s in e s s c hie f. e u
U i PAT H
“ Just four short years ago, it was a Romanian startup whose co-founders were driven by this vision of making work fun again. There were humble beginnings and this culture of staying humble, accepting feedback and seeking to improve, remaining obsessed with our customers’ success still permeates our present ethos” — Chris Duddridge, Area Vice President and Managing Director, UiPath (UK and Ireland)
channels. I’m incredibly fortunate to have an amazing team, who obsess over our customers’ projects and objectives, which makes it a great deal easier for me when we work to amplify
18
our approach across our marketing and PR channels,” says Duddridge. “UiPath is very different to other companies,” comments Duddridge. “Just four short years ago, it was a Romanian startup whose co-founders were driven by this vision of making work fun again. There were humble beginnings and this culture of staying humble, accepting feedback and seeking to improve, remaining obsessed with our customers’ success still permeates our present ethos. This vision of shaking up the workplace in order to free up employees from the mundane part of office work with the help of software robots and letting AUGUST 2020
The Story of Work CLICK TO WATCH
|
2:25
19 them focus on value-added work like
a 500,000-member strong global
analysis, creative activities, and stra-
community of RPA developers. We
tegic tasks producing revenue impact
were the first company to offer free
made UiPath the globally successful
download of our community edition
company it is today. Dedicated to what
product – software developers, schools
we like to call accelerating human
and universities, NGOs, small compa-
achievement, we focus on the whole
nies have free access to work with
narrative not just on the commercial
our software robots. On one hand,
gains. UiPath knew it was going to be
we were able to garner valuable feed-
disruptive from the get-go, and we
back and improve on our product so
maintained a steadfast commitment
that it responds to the most diverse
to democratising access to RPA and
range of business cases, but we have
digital skills – through the free online
also been creating the essential work-
training platform UiPath Academy,
force to enable our customers to
and the continuous investment into
achieve a greater outcome with their b u s in e s s c hie f. e u
U i PAT H
20 automation journeys. And we paired
our robots to respond to increasingly
this with a focus on creating a strong
complex processes and demands,
ecosystem of partners – an essential
embedding into our platform artificial
way of taking our end-to-end automa-
intelligence and machine learning
tion platform to customers and having
algorithms, task and process mining,
it service their goal.”
advanced analytics that allow the robots to learn and execute more.
CURRENT TRENDS WITHIN ROBOTIC PROCESS AUTOMATION
Little did we know we were actually priming our product for the number
“In market terms, RPA is the orches-
one trend Gartner predicted for 2020
tration capabilities of digital assistants
– hyper automation. This is now top of
– software robots that help people
mind for the entire industry, and it’s
perform their daily job on a case by
end-to-end approach. Rather than
case basis. Our focus during the
a one and done approach, organisations
last two-three years was to enable
are looking for a true transformation
AUGUST 2020
for business strategies, which can
global pandemic. With more people
be captured in four key pillars: digital
working from home than ever and
transformation, enhancing employee
unprecedented challenges in terms
experience, improving the customer
of supply and demand or customer
service, and reducing risk and increas-
grievances (think aviation or call cen-
ing compliance” says Duddridge.
tres here), relying on technology for
“All these are even more fundamental
remote on-boarding, or sorting huge
for CEOs in the current climate while
backlogs of requests, or staying compli-
business models are reshaped by the
ant takes centre stage.”
E X E C U T I V E P R OF IL E :
Chris Duddridge Title: Area Vice President and Managing Director (UK and Ireland) Industry: Computer Software
Location: London, United Kingdom
Chris Duddridge is UiPath’s Area Vice President and Managing Director of UK and Ireland. He leads the UK and Irish teams in their mission to drive automation adoption in the region, helping customers achieve their automation goals using UiPath’s best-in-its-class hyperautomation platform. Chris previously held the position of RVP of Sales for UK and Ireland at UiPath, supporting UiPath during a period of hypergrowth. With more than 20 years in sales and technology, he is an experienced sales leader with a track record of helping small teams rise to market leader status. Passionate about technology, Chris is inspired by the potential of automation to transform the future of work. Highly motivated by teamwork, his key areas of interest are incentivising collaboration, creativity, and customer focus. b u s in e s s c hie f. e u
21
POWER UP YOUR DIGITAL OPERATIONS WITH INTELLIGENT AUTOMATION At Symphony, we’re the proven leaders in transforming front, middle and back office operations to boost overall efficiency, increase employee productivity and improve customer satisfaction.
“As organisations grappled with their
volumes of data. Think of the many hours
own specific challenges and disruptions
an employee spends copying and past-
whilst the pandemic unfolded, it quickly
ing data from one application to another
became clear that intelligent automation
or extracting information from one docu-
programmes facilitated faster decision-
ment and inputting it on an excel sheet
making, much needed agility and
for example. Think of the huge volumes
operational resilience to adjust to rapidly
of invoices a financial shared service
changing demands and pressures. Now,
centre needs to operate and how only a
as businesses begin to stabilise rela-
robot will pay the same attention to the
tive to the earliest days, smart business
5000th invoice as to the first. Usually the
leaders are reimagining operations with
challenges with implementing RPA are
radical agility baked in, and automation
that someone has to deliver it, a subject
at the forefront. They’ve also begun to
matter expert has got to share their intel-
realise that the decisions they take will
ligence around how that process works
shape many aspects of business and the
dealing with every nuance that comes
future workplace, not just for the remain-
with it. Which leaves you with the reality
der of the pandemic – but for years to
that robots are very clever, but they do
come.” added Jason Martindale, Vice
not replace cognitive skills. Humans still
President Sales at Symphony, a SYKES
retain the ascendancy in every automa-
company – a long-time UiPath partner
tion because they’re either the subject
specialising in IA implementation and
matter experts that need to program
managed services.
the automation, or they are the part of the loop which needs to train the robots
THE BENEFITS AND CHALLENGES OF AUTOMATION
to learn and continue to deliver value
“The benefits of automation are easy
challenges with delivering automation
to sell,” contemplates Duddridge, “eve-
revolve around firstly having enough
rything that can be automated, will be
people to dedicate to delivering that
automated as long as it’s process led,
journey, scaling up the RPA centre
rules driven and you deal with large
of excellence, the subject matter
in that process. And so the real world
b u s in e s s c hie f. e u
23
U i PAT H
experts and the people that will lead
real problems, not “selling potential”.
the automation journeys forward within
“Recent events have kickstarted digital
each organisation, and ensuring what
transformation journeys for many
you’re developing is actually delivering
organisations, with remote working,
a return on investment and making
increased demand, or asudden burst
sure that people invest heavily in
in volumes pushing a lot of organisa-
the delivery.”
tions to think about automation. This
Following the COVID-19 outbreak,
24
is something that UiPath is looking
Duddridge reiterates that the organi-
to help where it can, to drive innovation
sation is truly focused on helping solve
for business continuity.”
UI PAT H ’S G U I D I N G PRINCIPLES
THE BEST STRATEGY With the benefits and challenges of adopting an ‘automation first’ mindset,
• A robot for every person
Duddridge reflects on the industry and
• Pioneering an ‘automation first’ mindset liberating office employees from boring mundane tasks to focus on added-value work;
explains that the strategic approach
• The UiPath mission is to provide the best RPA technology platform to enable the ‘automation first’ enterprise; • Free access to training for all RPA roles (also the first RPA company to provide a free download version of its product). AUGUST 2020
for an effective adoption of automation has changed in recent times. “It used to be very varied in terms of how automation initiatives were created,” he comments. “An example of this is someone within the finance team deciding that vendor invoice management could be automated. That finance organisation could use Optical Character Recognition (OCR) to retrieve the pertinent data from a document to break the back of 80% of its document ingestion and make its operations more agile. These kinds
“ Everything that can be automated, will be automated as long as it’s process led, rules driven and you deal with large volumes of data” — Chris Duddridge, Area Vice President and Managing Director, UiPath (UK and Ireland)
of organisations were our entry point into the market, but what we are now seeing are top down or bottom up strategies – sometimes both. For example, you will see CEOs of large banks talking about automation being a key pillar of their commitments, but you’ll also see citizen developers – regular employees – that are finding opportunities to make their work and the customer experience better. If people adopt that top down and bottom up approach it means that organisations will meet in the middle and always think about automation first.”
UiPath partners - stronger together CLICK TO WATCH
|
2:38
b u s in e s s c hie f. e u
25
U i PAT H
26
A robot for every person: Benefit from automation at enterprise-wide Scale - UiPath CLICK TO WATCH
AUGUST 2020
|
2:34
INNOVATIONS AND TECHNOLOGY IMPLEMENTATIONS When it comes to innovation and technology implementations within automation, Duddridge sees the biggest benefit that has evolved being “collaboration of intra technology companies. Think about anyone in the market that is perceived as market leaders, these leaders have acquired RPA skills within their business because automation is a key component of their platform. But what we’ve seen is that with our open and free community of technology partners we haven’t had to roll out 50 different proprietary bits of technology because we can leverage our relationship with partners such as Microsoft, Service Now, SAP and Salesforce, which are open to work within a collaborative ecosystem to deliver really transformational customer outcomes.” Duddridge adds that “while perhaps with technological advancements within the automation industry cloud technology has been a key player for us, allowing us to stand up our infrastructure within AWS or Microsoft Azure in seconds, and while the advent b u s in e s s c hie f. e u
27
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“ Recent events have kickstarted digital transformation journeys for many organisations, with remote working, increased demand, or a sudden burst in volumes pushing a lot of organisations to think about automation” — Chris Duddridge, Area Vice President and Managing Director, UiPath (UK and Ireland)
“across public and private sector clients in the UK and Ireland, innovation not only being an aspiration, but a necessity to find work arounds by
of cloud is not new, how we leverage
enabling technology at speed, and we
our relationships with cloud vendors is
felt compelled to help them, playing
truly transformational for businesses.
our part in mitigating the devastating
Most organisations are now looking
effects of the pandemic .” However, he
for cloud-ready technology that they
believes that while it has accelerated
can adopt quickly, knowing that you
the agenda it hasn’t changed anything,
tick every security box, compliance
and the technology remains the
box and regulatory box necessary.”
same. “The spirit of what we are trying
Other strategic additions to automa-
to achieve in getting software robots
tion Duddridge has seen in the last six
to take on the mundane rules-based
months include intelligent document
repetitive processes at speed and
understanding, some of which are AI and machine learning enabled, as well as OCR, process discovery, process mining, business process management and RPA.
POST-COVID-19 AND FIRST STEPS FOR THE INDUSTRY Reflecting on the industry since COVID-19, Duddridge has witnessed b u s in e s s c hie f. e u
29
U i PAT H
30
“ W e can leverage our relationship with partners such as Microsoft, Service Now, SAP and Salesforce, which are open to work within a collaborative ecosystem to deliver really transformational customer outcomes” — Chris Duddridge, Area Vice President and Managing Director, UiPath (UK and Ireland) AUGUST 2020
2005
Year founded
$360mn Annual recurring revenue (2019)
3,000 Number of employees
scale, and allowing the employees to
that act as a contingency, or ensure
deliver value-added impactful work
that parts of the business that are
which will ultimately be transformative
a challenge to manage with a remote
for organisations remains the same.
workforce are address in the long term.�
At the moment everyone’s still dealing with contingency planning and keeping the lights on, but post COVID-19, I think automation will remain the biggest topic for making sure that, should something like this ever to happen again, there are provisions b u s in e s s c hie f. e u
31
L E A D E R S H I P & S T R AT E G Y
32
AUGUST 2020
COVID-19: the impact on investor management in EMEA Sankar Krishnan, EVP and Industry Head, Banking and Capital Markets, Capgemini, discusses the impact of COVID-19 in EMEA for investor management WRITTEN BY
GEORGIA WILSON
33
busi ne ssch ief. eu
L E A D E R S H I P & S T R AT E G Y
S
traight off the bat, Sankar Krishnan, EVP and Industry Head, Banking and Capital Markets at Capgemini states: “These are
are unprecedented times, with investor management front and center. In some ways it has taken a beating, but in some ways it’s trying to correct itself.” Over the last four months the entire investor management ecosystem has been significantly disrupted, creating new challenges for organisations
34
and how they effectively maintain open communication with shareholders, provide guidance for the future and a deeper understanding of the industry.
RAPID INVESTOR MANAGEMENT STRATEGY TRANSFORMATION DUE TO COVID-19 Prior to COVID-19 Krishnan believed that the best strategy for effective investor management was “transparency, followed by leaders providing a consistent strategy and measurement process that gives a true representation of how an organisation is doing compared to what was discussed in the previous shareholder meeting.” This approach allowed organisations to easily compare its performance based on previous history, bringing together the consumers, the asset management industry, the wealth management industry AUGUST 2020
35
“ These are unprecedented times, with investor management front and center” — Sankar Krishnan, EVP and Industry Head, Banking and Capital Markets, Capgemini
busi ne ssch ief. eu
Reimagine the retail experience CLICK TO WATCH
|
3:30
37
and the investment management
outcomes and the future of compa-
industry. However, post-COVID-19,
nies, as well as the industry. Therefore,
“due to nobody’s fault, there are a lot
some have decided that, to give this
of unknowns,” comments Krishnan,
guidance after a time of total econom-
who states that “since World War II, I
ic uncertainty, would be wrong due to
would say we have never had a situ-
there being so many variables.”
ation like this where it has been very
Ultimately, Krishnan explains that
difficult to predict outcomes in terms
the inputs in the investor management
of where the world is going. We don’t
models provide outputs, which would
know much about this virus relating to
be shared with the entire investment
when it will disappear or when there
community, fostering good investor
will be a vaccine. As a result, from an
relations. However, “the models are
investment management perspective,
not able to produce the outputs with a
it is very difficult to predict business
high degree of probability. So at best busi ne ssch ief. eu
L E A D E R S H I P & S T R AT E G Y
you can give a range or a best guesstimate, because investor management is facing global impact that crosses industries, companies, consumers and governments. While the virus may affect regions differently, there is no doubt that each country and industry will be impacted considerably. Unfortunately, a lot of the survivors will depend on having at least an 80% to 90% capacity utilisation. This creates problems for the investment management industry, because you are faced 38
with the challenges of not being able to give guidance on any aspect of it, but life must go on. You have to make some assumptions and carry on, and I’m sure the public will understand if
“ While the virus may affect regions differently, there is no doubt that each country and industry will be impacted considerably” — Sankar Krishnan, EVP and Industry Head, Banking and Capital Markets, Capgemini
you’ve got some elements wrong. But I think right now we’ve got to deal with fighting the virus, I have no doubt that things will get better, however this is the current landscape for the investor management industry.”
THE IMPACT OF COVID-19 IN THE EMEA REGION AND THE FUTURE OF INVESTOR MANAGEMENT IN A POST COVID-19 WORLD “First and foremost, uncertainty is driving investor management’s re-
AUGUST 2020
W HAT IS I NVE ST OR MAN AGEMEN T/ INVE STOR R EL AT ION S? Investor management/investor relations (IR) is defined by the National Investor Relations Institute (NIRI) as “a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company’s securities achieving fair valuation.” Source: Institute for Public Relations
39
busi ne ssch ief. eu
L E A D E R S H I P & S T R AT E G Y
W HAT M AKE S A L E ADIN G IN VEST OR RE L AT ION S T E AM? To ensure that an investor relations department provides value to the organisation, those within the team need to change to be – as in, need to be consistent, clear and honest with their communication. However, leading experts within investor relations explain that while these are the fundamentals to drive true value within an organisation, it is vital for a investor relations department to:
40
• Have a financial orientation. “15 or 20 years ago, you could probably successfully work in IR with a strictly communications background. Now, though, you must have that financial background,” explains Regina Nethery, VP of Investor Relations for Humana • Foster deep knowledge of the company, industry and sectors, as well as constructive dissatisfaction. “You should never assume that what’s worked in the past is appropriate for the present or future,” says Chris Jakubik, VP of Investor Relations at Kraft Foods • Know who the go-to sources are. “Don’t worry about organisational layers or protocol and deal directly with the people who have the information you need,” adds Dexter Congbalay, VP of Investor Relations at Mondelez International • Know the ‘three ‘Ts’: timeliness, transparency and trust. “The investment community values an IR organisation that demonstrates its commitment to building relationships based on trust and candor,” says Charles Triano, SVP of Investor Relations at Pfizer Source: Deloitte AUGUST 2020
“ First and foremost, uncertainty is driving investor management’s response to the pandemic in relation to giving guidance” — Sankar Krishnan, EVP and Industry Head, Banking and Capital Markets, Capgemini
response team to tackle the communications. Once this is in place, from a guidance perspective, each of the companies and their investor management teams have to decide whether to continue with their current guidance. However you have to be careful in doing so because there could be a lot of legal issues associated.” Krishnan continues to explain that “from an accounting perspec-
sponse to the pandemic in relation
tive there are a lot of disclosures that
to giving guidance. In the UK we are
have to be made. So, investor man-
seeing organisations struggling with
agement teams have to work hand in
trying to retain their staff while oth-
hand with others to make sure they
ers have to make job cuts, and from
are doing the right thing. I think the
an investor management perspec-
governments of each country should
tive the question is: ‘how do you
come up with worst case scenarios.
effectively communicate this and
And similarly, I think it is good prac-
make the information available?’,”
tice for each organisation to do the
says Krishnan, who explains that
same in order to provide stakehold-
there are a number of components
ers with guidance on what the or-
that are very important. “There is
ganisation will look like coming out
the business itself, in terms of what
of COVID-19. Finally, given that we
will happen to it, what will be the
are not going to meet too many peo-
financial result, how they will take
ple in the months to come, i think it
care of people, the processes and
will be interesting to see how com-
technology needed to add business
munication technology like Zoom
value and the need to appoint a crisis
and Microsoft Teams will be used by busi ne ssch ief. eu
41
L E A D E R S H I P & S T R AT E G Y
“ I believe what happens in July will pave the way for the rest of 2020” — Sankar Krishnan, EVP and Industry Head, Banking and Capital Markets, Capgemini
42
organisations to replace traditional
When it comes to the future of the
in-person methods of communica-
investor management sector in a
tion and team management. It will
post COVID-19 world, Krishnan con-
certainly be interesting to see the
templates “I wish I knew, but I have
reports that come out in the com-
seen the following trends: start-
ing months. In Q1 many company re-
ing with financial services, we are
ports only had March as a bad month.
already seeing on average year-
At the end of Q2 it will be interest-
on-year 30% decline in footfall for
ing to see the reports with three bad
branch traffic. With the impact of
months, and I believe what happens
COVID-19, I see branches complete-
in July will pave the way for the rest
ly disappearing. During COVID-19
of 2020, with a lot of it coming down
we have all become very digital, so
to new financial models.”
I see app banking facing an all time
AUGUST 2020
43
high. Banks such as Revolut, Monzo
see more remote practices being im-
and N26 are going to take off even
plemented with many companies ac-
more than they already have. I also
celerating their online presence and
believe that when it comes to tech-
digital communication capabilities. I
nology and the financial services,
also believe that many contingency
companies are going to be collabo-
plans will certainly be reevaluated,
rating like never before. From a cost
with new industry models emerging
management perspective I see that
as a result.�
across industries, more companies will be moving to the cloud. I think some were holding back before, but I believe that we are going to see a lot of legacy transformation. I also busi ne ssch ief. eu
H U M A N C A P I TA L
HOW CLOUD PLATFORMS CAN REDEFINE HR OPERATIONS
44
AUGUST 2020
Business Chief EMEA learns from Accenture how digitisation is redefining HR, and the ways cloud platforms can help organisations stay ahead WRITTEN BY
GEORGIA WIL SON
45
busi ne ssch ief. eu
H U M A N C A P I TA L
W
ith digital transformation at the heart of 70% of global organisation’s strategies, digital technologies in the last five years
have been redefining the ways in which companies operate. Now, more and more companies are looking to rapidly deploy digital solutions at scale. As a result of this shift in mindset towards a digitally led culture, talent management and the need for new skills is driving a shift in how HR systems run. Performing well and maintaining momentum in a digital environment requires a workforce that is adaptable and can change to flexible demands, while the company itself needs the ability to 46
acquire and develop competencies relating to digital skills, technologies, processes and operating models to avoid skill gaps and shortages. As a result, HR leaders must reevaluate their digital strategies to manage this shift in trends. One way to do this is taking advantage of the low cost and flexible capabilities of cloud platforms.
ADOPTING A CLOUD HR PLATFORM “From an HR perspective, any changes to existing systems must be carefully considered and skilfully executed,� states Venky Seshadri, Senior Sales Director and Product Manager at Accenture. While some capabilities will be more critical than others, it is no secret that digital technologies bring new value to organisations when it comes to customer experience, growth, innovation, optimisation, AUGUST 2020
47
e uro pe .busi busi nene ssc ssch hief. ief. com eu
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transparency and agility, driving sus-
employee turnover, a 13.7% increase
tainable and efficient operations.
in internal job fill rates, and a 5.4%
With this in mind, HR professionals
increase in productivity.
can apply this same mentality and innovative technologies to deliver the
HR PLATFORMS IN THE CLOUD
organisation’s HR services. “Digital
One digital technology driving change
technologies remove some of the
within the HR sector is the use of cloud
mystery behind HR processes,” adds
platforms in the form of a platform-as-
Seshadri, by involving the workforce
a-service solution. While HR platforms
in recruitment, onboarding, perfor-
can be built in-house, utilising a cloud
mance reviews, learning and career
platform is a more cost and time effec-
development procedures, as well as
tive solution. In addition to reducing
opening up the ‘anytime-anywhere’
time and cost, these types of solutions
services with the use of mobility,
also provide flexibility and control to
social media platforms and smartphones to drive engagement. Further down the line, as organisations continue to evolve this technology, it can also be used to customise talent practices and communications for specific groups or individuals. Ultimately, Accenture explains that it is this less centralised and more integrated approach that is driving new digital HR capabilities. This insight was also highlighted in a study conducted by SAP SuccessFactor and Accenture, which showed that organisations that made use of digital HR solutions saw a 15.2% decrease in e uro pe .busi busi nene ssc ssch hief. ief. com eu
49
H U M A N C A P I TA L
effectively customise applications to
the automation of paper-based pro-
suit requirements, as well as the ability
cesses, for many HR departments the
to make better decisions via data moni-
digital giant is still slumbering. But the
toring tools, business intelligence and
time is ripe to be fully awake.
analytics; improve efficiency by reduc-
Organisations must employ an effec-
ing resources and time required;
tive digital strategy to lower operating
improve employee experiences relat-
costs and help to streamline and enrich
ing to recruitment, payroll and
human resources business processes.
workflow; and improve HR compliance
Cloud is a natural choice and, with the
with the help of automation.
right extensions, HR leaders can gain
However, Seshadri explains that, while “digital technologies may be
the flexibility and agility they need to serve their role’s future demands.”
more commonplace, they are far from 50
While workflows have been improved
ACCENTURE’S FIVE STEPS TO DIGITAL SUCCESS
through interconnected systems and
With the benefits of digital HR
being fully exploited by HR leaders.
D I G I TA L H R S AVI N G FACT S AN D FI GU RES
• Organisations can save 40% of their data load time when using a data conversion and migration extension to reduce errors during mass uploads • $80,000 can be saved with a test data and optimisation extension to secure personal data, avoiding penalty payments • $100,000 can be saved with a data validation and monitoring extension for defensive reporting efforts due to reducing the number of queries • A document creation extension can help users to build and manage templates easily Source: Accenture
AUGUST 2020
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51
providing endless opportunities to HR
processes which work seamlessly
professionals, but few of them har-
across its channels.
nessing this potential, Accenture
2. Migration to the cloud
highlights five key steps for any organi-
Organisations looking to adopt a
sation looking to digitalise its HR
cloud platform solution should ensure
processes.
that they have the right systems and
1. Harnessing an integrated and
processes in place to effectively adopt
consolidated platform
this approach. Organisations that
By harnessing a central HR platform,
migrate to the cloud can benefit from
organisations can benefit from unified
consistency across their operations.
and consistent data. As a result,
3. Utilising analytics
organisations will produce a single
Other useful tools which can be ben-
viewpoint of its workforce, with the
eficial to HR include analytics. These
ability to automate extended
capabilities can be used to measure busi ne ssch ief. eu
H U M A N C A P I TA L
T O P 1 0 B E N E F I T S O F U SI N G A HR PL AT FO RM
• Increased efficiency of HR operations • Improved employee experience • Reduction in HR costs • Reduced need for resources • Improved and more informed decision making with business intelligence • Improve regulatory compliance with automation • Provides a single set of data and viewpoint for the data • Increased accuracy • Improved reporting and analytics • Reduction in time spent on lower value tasks
52
Source: CIPHR and Natural HR
the effectiveness of HR operations and the impact it has on an organisation, in addition to providing insights on how a company can strengthen its HR processes. 4. Using social media for employee communication While not a new concept, Accenture highlights that social media channels are effective for engaging with employees, improving collaboration and speeding up HR processes. AUGUST 2020
53
5. Developing a mobile strategy Finally, in a constantly moving and dynamic workplace, extending the HR process via mobile technology is critical for reaching the workforce. Therefore an effective mobile strategy should be developed.
busi ne ssch ief. eu
D I G I TA L S T R AT E G Y
54
DESIGNING A DIGITAL STRATEGY AND THE IMPACT OF COVID-19 Business Chief takes a look at McKinsey’s 10 factors for a successful digital transformation strategy and the impact of COVID-19
WRITTEN BY
AUGUST 2020
GEORGIA WIL SON
55
busi ne ssch ief. eu
D I G I TA L S T R AT E G Y
W
hen it comes to designing a digital transformation strategy, McKinsey explains that “clear targets, man-
agement buy-in, and targeting easy wins early are just some of the key aspects of a successful digital transformation. Firms should also look to rapidly up-skill the digital expertise of their workers, and deploy agile
ways of working.”
REALISING DIGITAL POTENTIAL – 10 FACTORS FOR A SUCCESSFUL DIGITAL TRANSFORMATION FRAMEWORK 56
While it is no secret that digital transformation and industry 4.0 are providing organisations with a multitude of opportunities for customer experience, growth, innovation, optimisation, transparency and agility, to drive sustainable and efficient operations. “However, mounting evidence shows that digital transformations are easier said than done, with more than half of all UK projects estimated to fail at realising their desired goals,” says McKnisey. To help organisations navigate the challenges of developing a successful digital transformation strategy, McKinsey outlines 10 factors that can help an organisation realise the digital potential for an effective strategy.
AUGUST 2020
57
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First on the list is senior manage-
investment. When it comes to invest-
ment buy-in. When it comes to budgets
ing in a digital transformation strategy,
and decision making, having execu-
McKinsey explains that “investment
tives onboard and taking a proactive
is likely to result in lower profits for a
approach will drive quicker decision
while. But without it there is a serious
making and gain support across the
risk to profits in the longer term”.
entire organisation, as well as a smooth
Organisations willing to truly commit
transition process and clear priority
to the investment needed will be able
focus. “The CEO cannot simply sanc-
to pull off a digital transformation
tion a digital transformation; he or
strategy. While investment is a core
she must communicate a vision of
element of designing a digital trans-
what needs to be achieved, and why,
formation strategy, resources are not
in order to demonstrate that digital
unlimited and particularly in the cur-
is an unquestionable priority,” states
rent climate it is important to manage
McKinsey, this clear communication
the risk when investing in projects.
is crucial to maintain momentum and
McKinsey therefore, highlights the
reduce failures when digitally trans-
importance of sequencing initiatives.
forming operations, which leads to
As the more value a digital transfor-
the importance of identifying key mile-
mation captures, the more it becomes
stones and targets to aim for, with a
self-funding and builds great support.
clear roadmap and regular progress updates. “Targets are needed for each source of value creation – cost savings, revenues, improved performance of agents, and satisfaction of employees and customers—and for new ways of working and the new capabilities required,” adds McKinsey. Another key element to designing a digital transformation strategy is busi ne ssch ief. eu
59
D I G I TA L S T R AT E G Y
“A company’s financial pressures
the projects – known as a ‘lighthouse
will shape the sequencing to some
project’ – could be a key way to build
degree. So will its IT, if legacy systems
support. These short term and well
restrict initial choices. Companies
defined projects act as a measurable
must be more flexible. It could prove
model for projects going forward that
hard to recruit the particular people
are perhaps more broader.
needed, while technology and cus-
60
As an increasing number of organi-
tomer behaviour will continue to
sations look to design a digital
evolve. When initiatives are successful
transformation strategy, there has
and deliver the intended financial ben-
also been a rise in the need for skilled
efits, the board and top team should
talent, in particular a Chief Digital
be emboldened to push to achieve
Officer (CDO) to lead the digital
more,” states McKinsey. As a result
disruption and innovation. Recent
the establishment of ‘easy win targets’
statistics show that 19% of top global
in order to build the momentum for
companies now have a CDO – 60%
AUGUST 2020
How Coronavirus is Impacting Big Tech CLICK TO WATCH
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1:03
61 of which have been hired since 2015.
speed and autonomy at its core,
“The importance of securing a high-
agility as a process is defined as the
calibre launch team, often under a
division of tasks into short phases
CDO, cannot be overstated. A CDO
of work and the frequent reassess-
can prove invaluable in co-ordinating
ment and adaptation of plans. CDOs
a transformation – avoiding duplica-
and executive leaders can help to
tion by devising a methodology for
promote new ways of working within
the redesign of customer journeys
an organisation that are essential for
that can be replicated across the
digital success, including: agile prod-
organisation as digitisation efforts
uct development, maintaining focus
are extended.”
on customers, and cross-functional
With this in mind, the importance of
teams. McKinsey does however, high-
having a central launch team manag-
light that “separating a digital component
ing the overall operations leads into
from the rest of the organisation is
the need for agile ways working. With
not entirely the answer. They can start busi ne ssch ief. eu
D I G I TA L S T R AT E G Y
to create channel conflict, particularly if innovations threaten to cannibalise revenue streams. The digital unit therefore needs to be reintegrated at some stage, and that becomes more difficult as time passes. Whatever the choice, the ultimate goal has to be to enmesh the old and the new.” A recurring theme within these key factors is the need for a digital mindset to maintain momentum. It is important for organisations designing a digital transformation strategy to 62
encourage a digital culture. One way to develop such culture is through education. It is important for employees to understand the changes that
reach the stage when only a funda-
are happening within the organisation
mental organisational redesign will do,”
and how the changes will impact their
comments McKinsey. Organisations
way of working. It is also important
will need to redesign many fundamen-
when it comes to education to boost
tal aspects of its operating model
the skills and system. The success
in order to realise the true potential
of a digital transformation strategy
of a digital transformation strategy.
requires the ability to acquire and
“Silos drawn along functional lines
develop competencies relating to
have always been a drag on collabo-
digital skills, technologies, processes
ration and performance in large
and operating models to avoid skill
organisations. In the digital age, when
gaps and shortages.
companies need to reinvent the way
Ultimately, “whatever structures a company chooses initially, it will AUGUST 2020
they work on the fly, an inability to connect all parts of the organisation to
63
share data, expertise, and talent can
organisations had a digital transfor-
be crippling,” concludes McKinsey.
mation strategy in place, most were not far enough ahead to make the
THE IMPACT OF COVID-19 ON DESIGNING A DIGITAL TRANSFORMATION STRATEGY
As a result, organisations have been
When it comes to the future of digital
mation in order to adapt to new
transformation, organisations, when
working constraints as a result
asked ‘who led your digital transfor-
of lockdown measures.
mation?’ will answer, ‘COVID-19’. It is no secret that since the outbreak
impact of COVID-19 a non-issue. forced to drive rapid digital transfor-
“This is certainly a before-and-after moment in the history of the economy
of COVID-19, organisations all over
and the digital transformation,” noted
the world have had their operations
Andrew Filev, a Forbes contributor.
impacted by the virus. While 70% of
“Even when the COVID-19 outbreak busi ne ssch ief. eu
D I G I TA L S T R AT E G Y
64
is contained, it’s unlikely things will
adopted change due to the outbreak
return to normal. Instead, we’re seeing
of COVID-19. “Whatever objections
the forced acceleration of previously
businesses have previously had to
slow-moving trends that are likely to
telecommuting, COVID-19 may be
shape the future for the long haul.”
the moment that brings it into the
Accelerated adoption of digital trends as a result of COVID-19 include:
mainstream and shows leaders that with the right technology, culture, and expectations, employees can
TELECOMMUTING
be just as productive and effective
While remote working is not an unfamil-
from home,” says Filev.
iar concept, a recent survey revealed that 49% of workers have never worked
ON-DEMAND FOOD AND SERVICES
from home. As a result, telecommut-
With thousands of businesses due
ing technology has been the most widely
to social distancing guidelines forced
AUGUST 2020
to close, the on-demand economy has further reinforced its importance as part of digital transformation. With the likes of Uber Eats and Just Eat, digital delivery apps are providing revenue for those who had to close their brick and mortar stores. “If it works for restaurants, we may see new aggressive adoption of driveup or on-demand local delivery of
“communities and surrounding busi-
essential goods as a result. Some
nesses may need to compensate
businesses might even find this model
for a decrease in foot traffic in certain
provides lower costs, helps manage
anchor locations, and it could also
inventory, and makes revenue more
mean the painful loss of jobs in the
predictable,” believes Filev. However,
retail and service sector.”
F I V E D I G I TA L T R AN SFO RMAT I O N FACT S • 70% of companies have a digital transformation strategy in place or working on one • Top industries for digital-first business strategies include: services (95%), financial services (93%) and healthcare (92%) • Top benefits of digital transformation include: improved operational efficiency (40%), faster time to market (36%)
and the ability to meet customer expectations (35%) • 27% of organisations believe digital transformation is a matter of survival • 55% of organisations without a digital transformation strategy believe they have less than a year before they begin to lose market share Source: Forbes
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65
D I G I TA L S T R AT E G Y
W H AT D I G I TA L T R A N S F O R M AT I O N MEANS TO ORGA N I S AT I O N S • 52% believe it enables worker productivity, via tools such as artificial intelligent (AI) assisted processes • 49% believe it has the ability to better manage business performance with data availability 66
• 46% believe it helps meet customer experience expectations Source: FinancesOnline
VIRTUAL EVENTS
their physical event into a virtual one,
Events is an industry hit particularly
something “which in the end may not
hard due to the impact of COVID-19,
just be a 2020 phenomenon but the
alongside the travel and hospitality
new standard for experiences,” high-
industry that supports it. As a result,
lights Filev. It is unknown yet as to
conferences and trade shows have
whether virtual events will drive busi-
been cancelled or postponed due
ness to the same extent that a
to mitigate the spread of the virus.
physical one can, “but if they can, their
However, some of these events are turning to technology, transforming AUGUST 2020
appeal may be lasting. With lower costs for attendees and promoters
67
and more flexibility in content formats,
provides organisations with instant
I wouldn’t be surprised to see some
communication from any location.
events remain virtual in the future.”
Ultimately, “digital transformation has already saved millions of jobs,
THE CLOUD
helped slow the spread of the virus,
The cloud is the driving force that
and allowed businesses to maintain
has allowed organisations to rapidly
a level of normalcy amidst a chaotic
adapt their operating models as the
situation,” concludes Filev.
disruption of COVID-19 impacted their operations. Cloud technology busi ne ssch ief. eu
TECHNOLOGY
68
AI:
ENTERPRISE CHALLENGES & OPPORTUNITIES WRITTEN BY
AUGUST 2020
MARCUS LAWRENCE
69
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TECHNOLOGY
AI and machine learning pose major questions for nations at all stages of development we look at some of the challenges and opportunities AI provides
A
rtificial intelligence (AI) has no universal definition, though its
applications are perhaps its best descrip-
tors. As computing speed and power rise 70
while purchasing costs fall, the accelerated development of AI systems, those capable of completing actions typically reliant on human cognition to be accomplished accurately or at all, shows no signs of slowing down. Businesses are integrating technologies capable of automating simple tasks across their operations, from data collation, entry and analysis to payroll systems that can accurately and securely calculate an employee’s earnings against the myriad factors that could affect them month to month. The desire to work smarter rather than harder, repurposing existing staff freed from repetitive tasks so that they can contribute to value-added activities, is steering global business AUGUST 2020
71
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TECHNOLOGY
AI & Manufacturing in Asia — Opportunities, Challenges and Solutions: Microsoft Asia CLICK TO WATCH
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3:02
73
towards a mindset that, if something
“ BOTH SKILLED AND LOW-SKILLED ROLES ARE UNDER PRESSURE AS AI’S CAPABILITIES GROW AT AN EVER ACCELERATED RATE”
can be automated, it should be. This is a stance that’s not without its problems, of course, and in Asia the challenges of AI adoption are perhaps more stark than elsewhere. McKinsey Global Institute’s (MGI) ‘Artificial Intelligence and Southeast Asia’s Future’ report from 2017 cited earlier research which found that 50% of work activities conducted across the Philippines, Thailand, Malaysia and Indonesia could be automated. This work, cumulative across the four busi ne ssch ief. eu
TECHNOLOGY
FACTS
“For their part, most of the companies across ASEAN will need to make fundamental changes in management culture, including adopting a data-driven style of decision making, and most importantly, striking innovative partnerships with specialist firms to incubate the scarce skill sets needed for AI efforts; a thoughtful approach to strengthening the data infrastructure is also needed to prioritise effort and investments” — McKinsey Global Insights
74
AUGUST 2020
biggest Southeast Asian (ASEAN)
the ASEAN region, the threat to low-
economies, accounted for around
skilled work from AI is compounded
US$900bn in wages in 2017. On the
by the nature of those economies:
one hand, companies across those
delivering quality education and inclu-
four economies could stand to save
sion at all levels is a challenge across
almost a collective $1trn by adopting
these populations and substantial
AI and automating those processes.
swathes of the countries’ poorest
On the other, workers across those
stand to be left behind.
companies, industries and economies
Both skilled and low-skilled roles
may either find themselves reas-
are under pressure as AI’s capabili-
signed or made redundant as the
ties grow at an ever accelerated rate.
money is invested elsewhere. In devel-
McKinsey’s 2017 report found that
oping economies such as those in
at least 30% of activities carried 75
busi ne ssch ief. eu
TECHNOLOGY
out across 60% of all occupations could be automated, though it noted: “Because automation applies at the task level, AI seems likely to change more occupations than it will eliminate outright.” And, while the aforementioned automation of around 50% of tasks at a cost saving of $900bn is staggering to consider, “this does not mean that companies will replace workers with machines overnight just because it is technically feasible to do so. The pace and extent 76
of automation will be determined by how companies view the business case, weighing considerations such as the cost of these technology systems, their ease of use, labour market dynamics, the value that could be created, the customer experience, their own capabilities and regulatory and social acceptance.” The latter points made here are perhaps the most vital impediments to the potential havoc that AI could wreak on labour markets ill-prepared for its introduction: it won’t happen immediately and there is time to integrate the technology thoughtfully across economies. In short, as has AUGUST 2020
“ WHERE AI’S IMPLEMENTATION COMES WITH RISKS, IT ALSO COMES WITH THE PROMISE OF BENEFITING INDIVIDUALS AND SOCIETIES IN WAYS BEYOND EFFICIENCY IN BUSINESS” been typically accomplished during previous industrial and technological revolutions, societies, government spending and education can adapt to the new normal as productivity rises and wealth blossoms through gradual adoption. What sets AI apart from previous technological overhauls of working life is its propensity to extend beyond automation of repeatable, predictable tasks. Where AI’s implementation comes with risks, it also comes with the promise of benefiting individuals and societies in ways beyond efficiency in business. busi ne ssch ief. eu
77
TECHNOLOGY
78
McKinsey highlights some of the
records and observations of physical
key areas in its report, with the abil-
changes caught on camera to assess
ity for machine learning to “enhance
whether a disease has taken hold
credit models and financial inclu-
or progressed. Ophthalmic care, for
sion”, as well as its applications for
example, is limited for people in geo-
healthcare, having clear and direct
graphically remote areas by the need
benefits to populations across
for specialist equipment and limited
developing countries. Preventative
availability of doctors specialising in
and remote healthcare will be
eyecare. Bangladesh is one example
supercharged by machine learning’s
where a patient may only need to
ability to cross-reference medical
have photos taken of their eyes and
AUGUST 2020
FACTS
McKinsey highlights five M cKinsey highlights five elements that must be tackled elements that must be for AI adoption within tackled for AI adoption enterprises: within enterprises: • Clearly defined use cases or • Clearly defined use cases or sources of value sources of value • Robust data ecosystems • Robust data ecosystems • A workforce that is adept at using • A workforce that is adept at systems and tools using systems and tools • Clear integration with workflows • Clear integration with in the core business workflows in the core business • A n open culture that embraces a • A n open culture that embraces ‘test and learn’ approach a ‘test and learn’ approach
have them uploaded to a machine
infrastructure and data ecosystems to
learning-enhanced platform for a
realise these types of opportunities,”
diagnosis to be made based on learn-
McKinsey says.
ings from other patients. Changes
It is clear that Asia and the
over time may be minor and difficult
ASEAN region is both replete with
to detect by a human being, but such
opportunity and risks that must be
signs can be caught and flagged by
addressed when it comes to the
the system as new images are sup-
implementation of artificial intelli-
plied. But, of course, for such ideas
gence and its technological brethren,
to become reality, “most of the region
machine learning, deep learning, and
will need to build foundational digital
RPA. Governments and enterprises busi ne ssch ief. eu
79
TECHNOLOGY
“ THE SKILL SETS NEEDED FROM WORKFORCES WHOSE TRADITIONAL ROLES HAVE BECOME AUTOMATED MUST BE DELIVERED BY BOTH BUSINESSES SEEKING TO UNLOCK THE POTENTIAL FOR ABSTRACT HUMAN INPUT AND VALUE-ADD ACTIVITIES”
80
AUGUST 2020
must face down considerable challenges in order to unlock its capacity for accelerated efficiency and economic growth, improved availability of credit and financial inclusion, enhancements to healthcare and more. The skill sets needed from workforces whose traditional roles have become automated must be delivered by both businesses seeking to unlock the potential for abstract human input and value-add activities, and governments who stand on the verge of enormous potential for growth and prosperity. As the dust settles on a global pandemic that has called computational power to arms like never before, it will be interesting to see how the likes of the Philippines, Thailand, Malaysia and Indonesia shift to take advantage of AI.
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D I G I TA L T R A N S F O R M AT I O N
82
AUGUST 2020
DIGITAL TRANSFORMATION IN CORPORATE FINANCE WRITTEN BY
HARRY MENE AR
busi ne ssch ief. eu
83
D I G I TA L T R A N S F O R M AT I O N
From AI and RPA to advanced data analytics, digital transformation in the corporate finance secto is poised to reach maturity There’s no denying it: we’re in the midst of a digital revolution. From remote telemedicine to blockchain apps that stop blood diamond smugglers, and artificial intelligence (AI) that verifies the freshness of high-grade tuna, nearly every aspect of our lives is becoming more and more saturated with technol84
ogy. Digital transformation is affecting every vertical in every market across the globe. While some industries have moved faster than others, each transformation has followed an inflection point: the technologies required to power significant transformation reach a level of maturity and availability that allows for change. The companies that are able to embrace these technologies and successfully use them to drive their operational and digital transformations will gain a critical advantage over their peers. “The technologies needed to reimagine finance are here and they will only get better,” observes a recent report by global consultancy and accounting firm Deloitte. "Plus, we can learn a lot from other business functions. Modern factories give us a
AUGUST 2020
85
“The technologies needed to reimagine finance are her and they will only get better” — Deloitte
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“[Automation applications] are evolving from simple individual task automation to full process automation that could improve the accuracy of financial analysis nd forecasts” — Gartner glimpse of what automation can deliver.
INCREASED AUTOMATION
Smart contracts show us new ways of
From manufacturing to supply chain
tracking assets. The lessons are out
and logistics operations, automation is
there. We don’t have to reinvent the
the technological trend that is shaping
wheel. We can focus instead on adapt-
up to define the century. In the finance
ing and adopting.”
sector, robotic process automation
The report continues, however, to
(RPA) has the potential to reshape
note that although the technologies
the role of the finance professional,
necessary to effect seismic change
as well as dramatically increasingly
across the industry are appearing (typ-
the potential for value creation across
ically in the form of pilot programs and
entire businesses.
localised trials) there has yet to be
It’s estimated that financial planning
much evidence of scalable transforma-
and analysis (FA&P) professionals
tional change. “The roadmaps to that
spend as much as 80% of their workdays
future are still being drawn.” This month, Business Chief breaks down three of the key trends affecting the relationship between digital transformation and the finance operation, and looks at how companies can best adapt and thrive under these new conditions. busi ne ssch ief. eu
87
D I G I TA L T R A N S F O R M AT I O N
on manual data gathering, consolidation, verification, and formatting, leaving just 20% for high-level analysis and strategic planning. Significant RPA adoption across the industry could change all that. RPA uses AI to train software bots to perform increasingly complex yet repetitive digital tasks, from processing claims and transactions, to monitoring compliance and auditing processes. This technology is primarily manifesting through a phenomenon known as 88
“co-bots”. Rather than removing humans from the equation, the goal of a co-bot deployment is not to replace the human worker, but rather to augment that worker’s abilities through repetitive task automation, superior analysis, and workflow management. For example,
“The modern CFO is evolving from being a backwards-looking number collector to a trailblazing strategic leader who uses data and emerging technologies” — Marc Linden, EVP, GM of Medium Segment Native Cloud Solutions, Sage AUGUST 2020
89
process automation is having a signifi-
Automation in finance is gaining
cant impact on invoice management.
a good amount of traction in some of
According to Manoj Shroff, MD,
the more developed markets. In the
Finance and Accounting Business
US, for example, a report released
Process Lead at Accenture, using
in June by ISG found that around 83%
AI-powered predictive technology,
of enterprise finance functions have
finance departments are now able
deployed RPA in some way, and
to know with almost 95% accuracy
around 95% are experimenting with
when a particular invoice will get paid.
or have deployed machine learning busi ne ssch ief. eu
D I G I TA L T R A N S F O R M AT I O N
technologies in their finance and
“at the same time finance robotics must
accounting processes.
be scaled out of shared services and
Automation in finance has almost unlimited potential to increase efficiency,
into other finance sub-functions such as procurement and tax".
agility and ROI. As the technology
90
increases in sophistication, its applica-
POWERFUL ANALYTICS
tions are “evolving from simple individual
A technological trend that remains
task automation to full process automa-
closely linked with the increase in auto-
tion that could improve the accuracy of
mation deployments across the sector
financial analysis and forecasts,” accord-
is the growth and changing nature of
ing to Gartner’s report on automation in
analytics. The ability for finance depart-
finance. Gartner also notes, however,
ments to shift their energies away from
however, that the finance industry still
back-office reporting, and towards
faces pressure to increase ROI from
forecasting and predictive analysis,
automation deployments, adding that
has powerful implications for industries
Digital Finance – Finance Transformation at Deloitte CLICK TO WATCH
AUGUST 2020
|
3:55
like insurance and investment. The
finance analytics can cost a business as
power of data analytics to harness
much as 1% of its revenue, a figure that
and draw insights from vast pools of
can mount dramatically over the course
data (that would simply not be feasible
of an unsuccessful transformation.
for humans to manually evaluate) is a game changer for the industry.
“CFOs must ask what technologies will enable finance to deliver on-demand
However, the game hasn’t been
reporting, how should data be gov-
changed yet. A report released earlier
erned as reporting expands to inte-
this year by FSN, a mere 14% of financial
grate financial and nonfinancial data,
organisations are successfully harness-
and what skills finance will need to
ing the large volumes of transaction data
deliver insight in an on-demand report-
they accumulate. These organisations
ing environment,” commented Craig
are either laden down by too much data,
Wilton, Senior Director, Advisory,
constrained in accessing their data,
Gartner. “Finance must balance the
or hindered by the technology they are
need for accuracy with the need to
using to analyse the data. The stakes
make a huge volume of data available
are high, as well; Gartner estimates
for decision-making, which is a new
that each incorrect decision regarding
muscle for many finance teams.” busi ne ssch ief. eu
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D I G I TA L T R A N S F O R M AT I O N
T H E E R A O F T HE DI GI TAL CFO
As digital transformation touches every aspect of a business’ organisation, the need for digitally forward-thinking executives is extending beyond the CTO, CSO and other, traditionally techfocused roles.
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A report from January of this year by Sage found that 98% of CFOs say their job has significantly changed in the past five years, with around 75% claiming that they now play a critical role in driving digital transformation across their organisations. “The modern CFO is evolving from being a backwards-looking number collector to a trailblazing strategic leader who uses data and emerging technologies, like artificial intelligence and predictive analytics, to create a vision for the future of their business,” said Marc Linden, Sage EVP and GM of Medium Segment Native Cloud Solutions, in a press release. “The digitalisation of business is fundamentally changing the way finance leaders work and
AUGUST 2020
embracing technological evolution will separate the leaders from the laggards in this new era. However, a lack of cultural readiness in the office of finance may slow adoption of new technology and hinder achieving optimal results with any digital transformation.” Simply being a tech-savvy leader is not enough for the modern CFO; the most successful executives in this area need to be drivers of both cultural and digital transformation throughout not only their own finance departments, but the entire company. “Company culture plays a vital role in the effective integration of any technology,” cautioned Nancy Harris, Managing Director, Sage North America. “As CFOs are driving digital transformation forward, they must not overlook the critical role they play in ensuring teams have the skills necessary to optimise these solutions and allaying any misperceptions and fears about
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AI and automation across the wider organisation.” However, if the modern CFO can combine cutting-edge digital adoption with smart, agile strategic decision making, while working to successfully create cultural change and readiness for Industry 4,0 throughout their organisation, they can be a formidable agent of change. “CFOs have access to the most important data in the business and the insights pulled
from this data are critical to driving the company forward,” commented Marie-Helene SimardBrown, CFO, Costa Farms. “Data such as inventory management, compliance changes and financial forecasting must be set up and gathered properly in order to glean the right insights and operational efficiencies. This creates a real opportunity for CFOs to be innovation ‘change agents’ in the digitalisation journey of the business.”
busi ne ssch ief. eu
D I G I TA L T R A N S F O R M AT I O N
“Finance must balance the need for accuracy with the need to make a huge volume of data available for decision-making, which is a new muscle for many finance teams — Craig Wilton, Senior Director, Advisory, Gartner 94
THE CHANGING ROLE OF CORPORATE FINANCE
According to Deloitte, with digital solu-
As automation and analytics steadily
tions compensating fro routine work-
take on a more mature role in the oper-
loads, finance departments will have
ation of corporate finance divisions,
increased opportunities to proactively
the roles of those business units, and
create value and direct strategy.
the finance professionals working
These new roles will include functions
within them, is set to change dramatically.
like “scenario planning, advanced
This trend can best be described as
roles for their partners and clients.
forecasting, and better visualisation.
an upstream migration. As functions
Teams of business partners will come
like budgeting, processing and report-
together to focus on the most complex
ing begin to approach full automation,
commercial decisions, moving around
finance professionals will fulfil new
the business as needed”.
AUGUST 2020
95
In essence, the digital transforma-
will double down on business insights
tion of a finance department’s more
and service,” predicts Deloitte.
mechanical functions will create a
“Whether Finance continues to direct
world where the lines between the
the resources currently under its
finance discipline and other business
control will be dependent on its ability
functions like leadership, supply chain
to add value. That will require quality
and HR are increasingly blurred. This
insights and exceptional customer
interdisciplinary world will require
service. Some finance organisations
a shift in both attitude and training
will evolve into full-fledged business
focus for these departments, but has
service centers.”
the potential to promote agility and cross-company communication. “With operations automated, finance busi ne ssch ief. eu
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AUGUST 2020
Most valuable EMEA digital technology brands Business Chief EMEA ranks the top 10 most valuable digital technology brands in the EMEA region based on their market value
WRITTEN BY
GEORGIA WILSON
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T O P 10
10
BT Group
CEO: PHILIP JANSEN [US$14.5BN]
As one of the world’s leading communications companies, BT Group’s purpose is “to use the power of communications to make a better world”. Since its founding in 1846, BT continues to harness its 174 years of experience to serve 180 countries worldwide. Its main operations include the provision of fixed-line services, broadband, mobile, TV products and services as well as networked, security, cloud and networking services.
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AUGUST 2020
10
09 99
09
Telefónica [US$23.4BN]
Founded in 1924, Telefónica strives to offer the means to facilitate communication between people. “Aware of the new challenges posed by today’s society,” Telefónica believes in “the enormous potential that technology can offer to people, to businesses and to society.” Operating in 12 countries and present in 24, Telefónica prides itself on its innovative and attentive spirit. “At a time when technology is more present than ever in our lives, we cannot forget that the most important connection is human connection. Our mission is to make our world more human by connecting lives.”
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08
Nokia
08
CEO: PEKKA LUNDMARK [US$20.5BN]
Nokia aims to “create the technology to connect the world”. Founded in 1865, Nokia harnesses its 155 years in the telecommunications industry to provide solutions for service providers, for the industry and public sector and for consumers, as well as providing licencing opportunities to “enable others to build on Nokia innovations”. Since its journey began, operating a single paper mill, the company has been operating in a range of industrial sectors including cable, paper products, rubber boots, tyres, televisions and mobile phones.
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T O P 10
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07
07
Ericsson
CEO: BÖRJE EKHOLM [US$28.9BN]
Ericsson believes that “in a world that is increasingly complex, we are on a quest for easy”. The organisation hopes to create innovative technology that is easy to use, adapt and scale, to capture the full value of connectivity. Founded in 1876, Ericsson has been one of the leading providers of Information and Communication Technology (ICT) to service providers for 144 years. Its portfolio of solutions powered by 5G and IoT platforms include: networks, digital services, managed services and emerging business.
AUGUST 2020
06
Orange
CEO: STÉPHANE RICHARD [US$32.3BN]
Founded in 1988, Orange is one of the largest operators of mobile and internet services in Europe and Africa and a global leader in corporate telecommunication services. With over 30 years’ experience under its belt, Orange is built on its mission “to ensure that digital services are well thought-out, made available and used in a more caring, inclusive and sustainable way in all areas of our business”. Via engagement and expertise Orange aims to deploy innovative technologies to ensure that people and organisations can benefit from a more autonomous and secure digital life. 103
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05
05
Etisalat
PRESIDENT: SALEH AL ABDOOLI [US$36.7BN]
Founded in 1976, Etisalat is a leading telecommunications group in the UAE. Established over 40 years ago, Etisalat was the UAE’s first service provider. Etisalat Group provides innovative solutions and services to customers across the Middle East, Asia and Africa. Etisalat Group’s vision is to drive “the digital future to empower societies,” to provide best-in-class customer experience, both domestically and internationally, while investing in its long-term future, and support economic development. Etisalat was named by Brand Finance “The Most Valuable Portfolio Brand” in the Middle East and North Africa (MENA).
b u s in e s s c hie f. e u
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T O P 10
04
Vodafone
CEO: NICK READ [US$37.9BN]
As one of the world’s leading mobile communications providers, Vodafone is always aiming to innovate, experiment, learn, and improve. As a technology communications company, Vodafone’s mission is to connect and build a digital future for everyone. “We passionately believe in the power of new communications networks and technologies to change our society for the better. We believe everyone has a right to enjoy the benefits of a more connected, digitally enabled world. No-one should be left behind. And we want to achieve our vision while minimising our impact upon the planet.” 106
04 AUGUST 2020
03
03
Deutsche Telekom CEO: TIMOTHEUS HÖTTGES [US$69.2BN]
Founded in 1995, Deutsche Telekom (T-Mobile) is one of the world’s leading integrated telecommunications companies, that provides fixed-network/broadband, mobile communications, Internet, and IPTV products and services for consumers, in addition to information and communication technology (ICT) solutions for business and corporate customers. “Our network can do more than just connect people. It makes our lives safer, promotes equal opportunities, and helps reduce energy consumption and conserve resources. With the ‘we care for our planet’ program, we ensure that environmental protection and resource conservation issues are anchored holistically within the group and contribute to achieving our own climate targets.”
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T O P 10
02 Accenture
CEO: JULIE SWEET [US$118BN] Via its global network of more than 100 innovation hubs around the world, Accenture applies industry expertise, diverse skills and next-generation technology to combat business challenges. Accenture’s services include: strategy and consulting, interactive innovation,
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technology and operation models. As part of its operations Accenture strives to build a future of shared success keeping in mind its social impact, the environment, creating an inclusive workplace, developing its supply chain and building on its core value.
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Together Greater Than Ever CLICK TO WATCH
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T O P 10 AC C E N T U R E ’S T OP FI VE T ECH T REN DS I N 20 20
• Personalisation “Redesigning digital experiences with new models that amplify personal agency, transforming one-way experiences into true collaborations.” • Artificial intelligence (AI) and human collaboration Business operations will be reimagined with human and artificial intelligence (AI) collaboration. Taking “a new approach that uses artificial intelligence to bring out the full power of people.” • Moving away from the beta stage “Overcome the ‘beta burden’. Addressing the new reality of product ownership in the era of ‘forever beta.’” • Moving beyond the walls of the enterprise 112
“Companies in every industry will unlock new opportunities by introducing robots to the next frontier: the open world.” • Innovative DNA Accenture sees organisations building upon their capabilities and ecosystem partnerships to assemble a unique innovative DNA. Source: Accenture
AUGUST 2020
U S E C AS E S O F T R EN DI N G T ECHN O LO GY - I O T, A RT I F I C I A L I N T E L L IGEN CE AN D BLO CKCHAI N - I N G LO BAL SECT O RS
• Automotive
• Education
IoT: crash avoidance, fleet management and smart factories. Artificial intelligence: autonomous driving, driver assistance and vehicle to vehicle communication. Blockchain: vehicle title management, counterfeit detection and origination identification.
IoT: facilities management, personalized student experience and student security. Artificial intelligence: student enrollment, personalised learning plans and student success. Blockchain: student records, digital rights management and learning marketplace.
• Manufacturing
• Finance
IoT: service monitoring, production monitoring and product insights. Artificial intelligence: predictive maintenance, intelligent manufacturing and demand sensing. Blockchain: compliance management, IP management and product traceability.
IoT: wearable technology, insurance as a service and trade finance. Artificial intelligence: risk management, financial planning and fraud prevention. Blockchain: cross border payment, identity management and settlement trading.
• Communication
• Healthcare
IoT: connectivity, delivery and monetization of iot services and asset tracking and remote workers. Artificial intelligence: network maintenance and troubleshooting, dynamic resource allocation and customer experience. Blockchain: roaming charge settlement, media and game streaming, and security and fraud.
IoT: remote patient monitoring, asset management and medication adherence. Artificial intelligence: fraud detection, pattern based cybersecurity and virtual nursing assistant. Blockchain: claims management, medical traceability and credential validation. Source: Oracle b u s in e s s c hie f. e u
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T O P 10
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01 SAP Is Improving Lives. That’s Our Purpose CLICK TO WATCH
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1:30
01 SAP
CEO: CHRISTIAN KLEIN [US$142.4BN] Standing for Systems, Applications, and Products in Data Processing, SAP - founded in 1972 - was originally known for its enterprise resource planning (ERP) software. Today SAP has evolved into a leader in end-to-end enterprise application software, database, analytics, intelligent technologies, and experience management. SAP helps businesses to operate profitably, adapt continuously, and achieve their purpose. “The best-run businesses make a world of difference. We are fans of the change-makers, the ground-breakers, the life-savers. We help them get real-time insights, overcome obstacles, and make great decisions – so their good ideas can start improving lives sooner.”
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Guiding the next generation of process automation WRITTEN BY
WILL GIRLING PRODUCED BY
BEN MALTBY 117
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I S G A U T O M AT I O N
Wayne Butterfield, Global Head of Intelligent Automation Solutions at ISG, describes why automation is becoming a modern business necessity
F
ounded in 2006, Information Services Group (ISG) has established itself as a global leader in technological research and
advice. With a staff of over 1,300 experts working in 20 offices spread around the world, the company distinguishes itself with an innovative approach 118
based on industry insight, cutting-edge analysis and hands-on experience. ISG’s diverse range of 700 customers is a testament to the breadth of its knowledge - from privately-owned corporations to public institutions and tech providers, ISG has been able to foster positive results and take its clients to a new level of operational excellence. Wayne Butterfield, Global Head of Intelligent Automation Solutions, reflects that the company’s focus made a big impression on him when he started there in 2016: “I joined ISG for the people, the strategic direction that they were interested in moving towards and because the automation space is of real interest to me.” Having previously worked for two of the top tech/telecoms companies in the sector - O2 and BT - Butterfield explains that the fantastic opportunities and AUGUST 2020
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experiences that were afforded to him early on have gone on to influence his work with ISG. Learning various aspects of the industry, including online chat/chatbots, customer services, RPA (robotic process automation) and more, crystallised his experience and formed him into the tech advocate he is today. “It opened my eyes up to the role that technology can play in helping b u s in e s s c hie f. e u
I S G A U T O M AT I O N
businesses achieve their goals, cre-
staff of ex-practitioners and early adop-
ate business value and increase
ters means that clients can be assured
operational efficiencies.”
of its credentials as an innovator almost
Although it’s a valuable insight, it’s
120
immediately. “ISG is led by people, like
far from a unique one, which is why,
myself, who didn’t learn about automa-
Butterfield continues, ISG Automation
tion from a PowerPoint,” Butterfield
strives to differentiate itself from the
states, “as a really early adopter, I wrote
competition by harkening back to its
the PowerPoint.” When he started work-
roots as a sourcing company. “ISG has
ing with RPA 10 years ago, Butterfield
the leading market share in all advised
says that he was amongst the first
Sourcing deals globally. As a result, it
globally to explore its potential. His
has collated a significant amount of
work resulted in ISG’s concept of the
really useful data; it’s a very data driven
‘RPA Centre of Excellence’ based on
business now.” The importance of data
five key principles: defining team roles,
in an era where information is gold dust
establishing an RPA CoE Council,
cannot be overstated. Moreover, ISG’s
establishing effective governance,
recognition of automation’s value and its
managing organisational change and collaborating with IT. It’s a cogent level
C O M PA N Y FACT S
ISG’s ‘Bot 3.0’ study, which surveyed 321 QTP (qualified to participate) companies, found that only 7% of companies with a dedicated automation strategy included complex cognitive tasks
of expertise that few other companies can lay claim to. In fact, when asked what he considers the greatest achievement of ISG to date, Butterfield proudly says that the “long-standing repeat business [ISG] gets from multiple clients” is at the top of his list. “RPA is a cornerstone of most organisations’ automation strategies at the moment,” says Butterfield. “It’s generally the technology that most people have started with and I would say that
AUGUST 2020
What Should I Automate? CLICK TO WATCH
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2:22
121 it’s probably the most mature at the
journeys,” Butterfield explains. “Having
moment.” Governed by software which
the right conversations, from a change
emulates how humans manipulate digi-
management perspective, are what
tal systems, RPA can be revolutionary
will make a programme successful, not
for a company seeking to emancipate
whether you build a small number of
its workforce of mundane, repetitive
bots; this isn’t really a technology play,
functions so that they can focus on
but that seems to get lost in most mar-
more qualitative tasks. The potential
keting messages I read online.”
for RPA’s application makes it a diverse
ISG’s sophisticated understanding
subject and one which requires ISG’s
of RPA is impressive. However, given
level of knowledge to properly leverage.
the mercurial nature of the tech indus-
“The way we help our clients is based
try, the company had to push beyond
around discussing our experiences
traditional RPA and also consider other
and then using the methodologies that
developments in AI (artificial intel-
we’ve developed to help accelerate their
ligence) based automation. After all, in a b u s in e s s c hie f. e u
“ I joined ISG for the people and for the strategic direction that they were interested in going in, because the automation space is of real interest to me” — Wayne Butterfield, Global Head of Intelligent Automation Solutions, ISG
today could be disrupted tomorrow,” Butterfield explains. “Being two or three steps in front of your clients is really important. There’s definitely been a mindset change throughout the organisation that we’re no longer just an RPA practice; we’re an automation practice and we need to make use of different technologies.” Therefore, ISG started engaging in next generation technologies like NLP (natural language
sector where innovation is a key compo-
processing), OCR (optical character
nent, staying ahead of industry trends
recognition), Virtual Agents and chat-
is essential. “We’re living in a world
bots all the way back in 2017. Whilst
where what is seen as state-of-the-art
RPA enables automation of the ‘hand
ISG Helps Banks Harness the Power of Automation CLICK TO WATCH
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I S G A U T O M AT I O N
The Rise of Artificial Intelligence CLICK TO WATCH
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124 work’, these other technologies repre-
as one further example of an automa-
sent a step forwards in achieving the
tion area of interest: conversational AI
same thing for much more complicated
continues to improve, meaning only the
‘head work’. ISG’s recent ‘Bot 3.0’ study
longer or more complex conversations
surveyed 321 QTP (qualified to partici-
will still require agents to handle them.
pate) companies found that only 7% of
“Unfortunately for agents, they still have
companies with a dedicated automation
the pressure of an average handling
strategy included complex cognitive
time (AHT) target on the residual con-
tasks, meaning there is still plenty of
tacts,” he states. “It will then be Assisted
room for development in this field.
Automation (vs RPA) that will further
RPA has delivered a large number
enable swifter contact resolution:
of benefits to organisations who have
quickly retrieving customer data and
implemented it correctly, but it is not
presenting it to the advisor within sec-
a panacea for all areas of business.
onds, ensuring compliance scripts are
Butterfield notes the Contact Centre
read whilst completing arduous manual
AUGUST 2020
tasks in the background and even
company could substitute human work-
adding notes for completed actions.”
forces with relative ease, the truly global
Butterfield posits that this kind of auto-
impact of COVID-19 has highlighted
mation for advisors will be imperative
for many enterprises the necessity of
for more complex enquiries, effectively
maintaining a good human-robot mix to
utilising the best of both human and
ensure business continuity. “I think from
machine intelligence in a way which
an automation perspective, it has really
delivers optimal customer outcomes.
heightened the need for the (nonhu-
This use of multiple technologies, rather
man) digital workforce to be a core part
than a ‘silver bullet’ is where we are see-
of just about every organisation’s strat-
ing increased traction in the market.
egy moving forward,” states Butterfield.
It could be argued that the need for
The other effects of the pandemic on
ever-increasing levels of automation has
ISG in particular have been maintain-
never been made clearer than by the
ing compliance and regulation within a
socio-economic effects of the COVID-
new paradigm of remote working. “It’s
19 pandemic. Whereas previously a
extremely difficult to manage when
E X E C U T I V E P R OF IL E :
Wayne Butterfield Title: Global Head of Intelligent Automation Solutions Industry: Technology research and advisory Wayne is an automation pioneer, thought leader and practitioner based in the UK. He heads up the AI & Cognitive Automation Practice for ISG globally and is responsible for all cognitive automation engagements in ISG, assisting its clients to make the move from basic RPA into the realm of AI Automation and beyond. b u s in e s s c hie f. e u
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Messaging Will Never Be The Same Contact centers are evolving. Virtual and human agents now work together to create superior messaging experiences.
Change the conversation.
You’ll satisfy more customers. www.247.ai
“ We’re living in a world where what is seen as state-of-the-art today could be disrupted tomorrow” — Wayne Butterfield, Global Head of Intelligent Automation Solutions, ISG
security regulations, NICE is comprised of individuals with a sincere dedication to helping others and achieving the best outcomes for clients. Founded in 1986 in Israel and currently employing over 6,500 people, the company has established a storied legacy in the software industry. Oded Karev joined NICE in 2012 as Director of Strategy before working his way up to General Manager of Advanced
you’ve got 2,000 agents working from
Robotics Process Automation (RPA) in
2,000 separate locations, predomi-
2016. “All of our focus is around digital
nantly from their home, and that’s not to
transformation,” he explains. “That is,
even start thinking about the bandwidth
everything around managing, optimis-
challenges and the connectivity issues,”
ing and improving the workforce of
he continues. Therefore, working very
customer service operations.”
closely with partners to find solutions to
Reflecting on how the industry
these problems will remain high prior-
has changed since the start of his
ity for ISG in the short-term. Looking
career, Karev says that the meaning of
for partners that will help it investigate
‘digital transformation’ has undergone
specific issues and highlight the right
something of a change itself in recent
solutions plays into ISG’s culture as an
years. Whereas once automation was
organisation of problem solvers at heart.
about removing the human element in
Two collaborators who have helped it
favour of customers interacting solely
attain this result are NICE and [24]7.ai.
with a machine, now it is a far more
Providing customers with the exper-
harmonious synergy between human
tise to increase operational efficiency,
and artificial intelligence (AI). “The old
stay financially protected and ensure
methodology had a great impact on the
their business is fully compliant with
bottom line because you saved a lot b u s in e s s c hie f. e u
127
I S G A U T O M AT I O N
of service costs, but it had a negative effect on the top line: more attrition, less loyalty, less upselling, etc.” With customer-centrism now permeating business philosophy, NICE is at the forefront of software solutions which enable efficiency without compromising the ‘personal touch’ of human-to-human interaction. Having become accustomed to highly efficient online service models pioneered by companies like Amazon, Google, Facebook, Uber and others, consumers now expect their 128
legacy service providers to give them a comparable digital experience. After all, automation, particularly after the COVID-19 pandemic, is gaining in popularity as a practical solution to service restrictions. However, far from believing that the virus instigated this change, Karev affirms that “COVID just accelerated everything.” ISG distinguished itself as being one of the first companies to truly understand NICE’s concept of ‘attended automation’ (a term coined by Karev) and how it could accelerate digital transformation. “The RPA market is built on partnerships between vendors and consulting companies and AUGUST 2020
129
E X E C U T I V E P R OF IL E :
Oded Karev Title: General Manager of Advanced Robotics Process Automation, NICE Educated at Bar-Ilan University and Ben-Gurion University of the Negev, Oded Karev joined NICE in 2012 as Director of Strategy before working his way up to General Manager of Advanced Robotics Process Automation (RPA) in 2016. A long-standing expert in his field, Karev has almost two decades of strategy consulting experience, including roles at Accenture. Today, his daily role involves focusing on digital transformation and managing, optimising and improving customer service operations. b u s in e s s c hie f. e u
I S G A U T O M AT I O N
N I C E ’S N EVA PRO DU CT
Of particular note is NICE’s NEVA product – a virtual assistant designed specifically with customer service staff in mind, able to help them both online and offline functions. The utility of NEVA was underscored and put to the test when ISG observed customer service agents experience increased call volumes as a result of complications caused by COVID-19.
The liberty afforded to them by NICE’s software meant that this spike in activity could be more effectively managed. “If you’re spending less end-to-end time dealing with a customer, that increases your ability to absorb more contacts,” he continues. “For me, NEVA is a real business value driver and a key enabler. It’s always great to see the appreciation NICE’s technology gets from my clients.”
130 service providers. Sometimes, we’ve
on a journey to embed AI into our robots
found it difficult to educate partners
and bring further product differentia-
on attended automation’s benefits, but
tion and more capabilities. The smarter
ISG got on the bandwagon immedi-
our products are, the more value ISG
ately.” Furthermore, Karev believes the
can bring to its end customers. This is
company’s partnership with ISG will
something that NICE intends to con-
become more strategic and visible as
tinue partnering with ISG on.”
their relationship develops. Already thoroughly intertwined with
Meanwhile, [24]7.ai is dedicated to creating a seamless and thoroughly
each other’s goals, Karev even states
customisable customer service experi-
that by helping ISG he has come to
ence. Founded in 2000, the company
regard its customers as his own. “ISG
began gaining traction in India as a
is a company that is highly committed
business process outsourcer, before
to its customers and the success of its
expanding into other areas in Asia,
projects,” he summarises. “We’ve been
South America and the US. Now,
AUGUST 2020
131 serving some of largest enterprise cli-
of experience in sales and marketing
ents currently in the global market, [24]7.
operations, states that the company is
ai combines the best of both human and
ushering in a new phase of customer
artificial intelligence (AI) by synthesising
service. “What we’re doing at [24]7.ai
workers with automated assistants to
is exciting because we’re bringing 20
handle simple tasks and leaving more
years of experience across the Atlantic
complex problems to be dealt with
to Europe and applying it to this space;
by a person. Moreover, during a more
it’s an exciting time for a vibrant, new
complex call, the AI can also automate
approach,” he says.
certain aspects of the enquiry, thus
This new approach couldn’t have
speeding up the overall solution and
come at a better time: with new technol-
enabling high-volumes of calls to be
ogy presenting both advantages and
dealt with a quality response.
challenges to those exploring how best
Tim Johnson, Managing Director of [24]7.ai EMEA, who has a wealth
to utilise it, [24]7.ai is pioneering the perspective that an intelligent fusion b u s in e s s c hie f. e u
I S G A U T O M AT I O N
132 E X E C U T I V E P R OF IL E :
Tim Johnson Title: Managing Director of EMEA, [24]7.ai Currently MD of [24]7.ai EMEA, Johnson was formerly a member of the Royal Navy, serving as an engineering officer. Following this first brush with leadership duties, he went on to become a professional sailor, where he worked across the Americas teaching people to sail. It was 20 years ago, upon his return to the UK, when he finally made the transition to sales and marketing operation, working in roles within telecoms, SaaS (software as a service), HR, payroll, and customer experience. Johnson is now focused on bringing process standards from the US over to Europe in order to create a vibrant and new approach.
AUGUST 2020
133 of human and automated capabilities
its understanding of technology and
will yield the best results. “Very often,
its ability to differentiate between the
organisations have different divisions
truly valuable and the mundane.” Citing
looking after various channels. The
true partnership as critical, he adds that
effect is that customers end up with a
ISG helps to guide [24]7.ai through its
very mixed experience. Our company is
thought leadership and understanding
all about understanding your custom-
of vendors, which, in turn, allows the
er’s journey, making sure it’s as smooth
company to create added value for its
as possible and dealt with in the best
customers. “ISG has brought us valu-
way possible,” he continues.
able experience with robotic process
Recognising a shared goal in the
automation (RPA), which is very impor-
quest to optimise automation, Johnson
tant for us in terms of optimising how an
comments that [24]7.ai’s partnership
organisation operates.”
with ISG has been transformative. “ISG is a key partner of ours: we appreciate
When considering what key trends or technologies will continue to b u s in e s s c hie f. e u
I S G A U T O M AT I O N
shape the two companies’ relationship, Johnson refers to the ‘new normal’ or post-COVID-19 working conditions that businesses around the world are adapting to. “Some of what we’ve learned together is now being delivered to our customers around how to make remote working safe and secure for everyone,” he says. “We need to work with partners like ISG because it helps organisations to make the change towards omnichannel customer service and 134
the message we’ve been discussing: human intelligence and artificial intelligence working together.”
“ There is no one solution which is the panacea for automating large chunks of a business. Making sure that you’re choosing a trusted advisor will be extremely crucial and ISG is the right partner to guide that journey” — Wayne Butterfield, Global Head of Intelligent Automation Solutions, ISG AUGUST 2020
As a team of problem solvers, ISG has achieved commendably. Having said that, since technology never stops changing, problems needing to be solved won’t either and so the company’s focus must always be on the future. Despite the increasing sophistication of automation, Butterfield is confident that ISG Automation’s reputation and expertise will guide it successfully. “Understanding the nuances between the various different technologies has always been an area which ISG really
2006
Year ISG was founded
$300mn+ ISG’s revenue in US dollars
1,300
Number of employees at ISG
excels in,” he states. “We understand
is the panacea for automating large
the complex and are able to explain
chunks of a business. Making sure that
it in simple terms. That’s what really
you’re choosing a trusted advisor will
resonates with our clients: who wants
be extremely crucial and ISG is the right
to be baffled by technology?” For the
partner to guide that journey.”
rest of 2020 and beyond, ISG will be focusing on helping its clients progress to a new generation of automation and promoting the seamless, sustainable benefits it can bestow. “The spectrum of automation technologies available, I think, is very important,” Butterfield concludes. “There is no one solution which b u s in e s s c hie f. e u
135
136
DELIVERING MISSION-CRITICAL DATA CENTRE INNOVATION WRITTEN BY
MATT HIGH PRODUCED BY
LEWIS VAUGHAN
AUGUST 2020
137
b u s in e s s c hie f. e u
B A S E FA R M
PETTER M. TOMMERAAS, SENIOR VICE PRESIDENT DATA CENTER SERVICES AT BASEFARM, DISCUSSES DELIVERING MISSION-CRITICAL DATA SERVICES THAT ENABLE DIGITAL TRANSFORMATION
P
etter M. Tommeraas recounts his first experience with a data centre as “walking down a hallway in an office building, back in
1998, and coming across several servers outside a 138
single room off that hallway. Those servers and that room were the data centre. And that was a solution being delivered by one of Norway’s main data centre providers to a large, national customer.” To say that the data centre industry has transformed in the 20 years or so that Tommeraas has been operational in it is something of an understatement. Currently Senior Vice President Data Center Services at Basefarm, a managed service provider that delivers services based on both public and private cloud services and manages its own data centres, Tommeraas has a unique view of an industry at the heart of global digital transformation. “The pace of change has been tremendous,” he notes. “Naturally, that change has been facilitated by technology, but it runs much deeper than that the overall quality, the level of security provided and AUGUST 2020
139
b u s in e s s c hie f. e u
B A S E FA R M
“ THE OVERALL QUALITY, THE LEVEL OF SECURITY PROVIDED AND THE ENTIRE PHILOSOPHY AROUND WHAT YOU DO WITH YOUR DATA AND YOUR DATA CENTRE IS SO MUCH MORE MATURE” — Petter M. Tommeraas, Senior Vice President Data Center Services, Basefarm
the entire philosophy around what you do with your data and your data centre is so much more mature. That’s particularly the case for companies such as Basefarm that provide mission-critical services to customers. The broader pace of digital transformation has driven data centre growth in particular. From our perspective, there’s been a real shift in companies moving away from doing everything, and most of it well, to using digital technologies and tools to focus on honing their USPs
140
and placing effort into the most important or core things. It means that the rest of those services - in this instance how to manage data - are sourced from other specialist companies.” Basefarm is one such company. Founded in 2000, it is today part of the Orange Group, and offers a suite of mission-critical IT services that covers Big Data, cloud, and managed, security and professional services. Tommeraas is responsible for operations related to data centres. “I have two main responsibilities,” he says. “I deliver colocation to customers that want to mainly take care of their own operations but are looking for a service due to reasons AUGUST 2020
Why choose Basefarm’s data centers in Norway? CLICK TO WATCH
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2:12
141 such as regulation or an added com-
Tommeraas says that there are sev-
plexity. Alongside that, I take care of
eral reasons why colocation is an
and deliver all the data centre service
increasingly attractive choice: “Often,
to support the other areas in Basefarm,
it’s for customers that need the
such as managed services, cloud solu-
added layer of operational stability
tions and the rest of the portfolio.”
and security that they can’t get from
Digital transformation has changed
managing the operations themselves,
all organisations over the last decade
for example,” he explains. “Other
or more. In particular, companies are
examples could be a public customer
faced with increasing volumes of data
that needs an added level of privacy
to manage. Despite this, the design,
or has very specific needs around
build and operation of purpose-built
who can access their data, or even
data centres is becoming a less
a competitor services company.
common route to the cloud, with many choosing a colocation service.
“The biggest difference between Basefarm and other colocation b u s in e s s c hie f. e u
B A S E FA R M
142
providers is that we have the entire
Basefarm calls this total service
portfolio within our businesses,” he
‘idea to cable’, an integrated package of
continues. “So, while we have many
the key competencies for digital trans-
customers that need to use our
formation including Big Data, cloud
colocation services as they progress
computing and information security.
through their project or migration,
This allows Basefarm to provide stra-
they regularly use our additional
tegic advice, implementation projects
offerings, such as our advisory
and infrastructure operations under
services or specific knowledge in
one management and on any cloud. It
associated areas. I’m confident in
is, Tommeraas concedes, a service
saying that we can offer a total solu-
capability further enhanced by the
tion that few other colocation data
company’s belonging to the Orange
centre providers are able to in terms
Group. “We became part of the Group
of delivery and competence.”
in 2018, and the advantages of that
AUGUST 2020
include belonging to one of the biggest
says: “Our customer teams are very
networks in the world. It allows us to
proactive and work with every client,
deliver network services around the
to the extent that we insert our people
globe in one of the top five networks
into the organisation and ensure that
and has certainly broadened the port-
they work alongside the customer’s
folio we’re able to offer our customers.”
delivery team. Public cloud is an area
Elaborating on the scope of the company’s portfolio, Tommeraas
that is growing very rapidly and we have a very broad suite of deliverables
E X E C U T I V E P R OF IL E :
Petter M. Tømmeraas Title: Senior Vice President Data Center Services Company: Basefarm Petter M. Tømmeraas is Senior Vice President for Data Center Services in Basefarm. He has more than 20 years of experience within data centers, IT and telecommunications. After working for an American software and hardware vendor in the mid-90s, he started working in EUnet in the first half of 1998 and was part of the KPNQwest team that built a pan-European fibre network and a number of data centers all over Europe. In the years after, he worked within the companies that developed from the old EUnet and KPNQwest organisations mainly focusing on data center services, telecommunication services and managed services. In 2009 Tømmeraas helped set up a company to deliver data center services and managed services, mainly to the Norwegian market. The company was sold to Swedish publicly listed company Phonera. He then joined Norwegian data center company Green Mountain as the Chief Sales Officer of the company. In early 2018 Tømmeraas joined Basefarm as Senior Vice President Data Center Services. b u s in e s s c hie f. e u
143
Unique, open & intelligent technology solutions
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“ THE BIGGEST DIFFERENCE BETWEEN BASEFARM AND OTHER COLOCATION PROVIDERS IS THAT WE HAVE THE ENTIRE PORTFOLIO WITHIN OUR BUSINESSES” — Petter M. Tommeraas, Senior Vice President Data Center Services, Basefarm
it requires a different approach. That kind of scenario means that providers like us also have to work far more closely with our customers - we’ve even been forced to change ourselves in response to that direction.” For Basefarm, Tommeraas explains that digital transformation has meant a rapid shift technology-wise, first from on-premise data centres, to the public and - looking ahead - a hybrid model. “The future is hybrid,” he explains. “It
in this area. The biggest challenge is
won’t be feasible to use the public
often communicating to the client the
cloud or data centres alone, but rather
specific solution or group of solutions
a combination of several innovative
that they need, which is why we work
technologies and solutions in a hybrid
so closely with them to ensure they’re
model. The key challenge in that from
getting the best of breed in every area.”
our perspective is ensuring that all of
Elaborating on this point,
those technologies work well together.
Tommeraas states that digital transfor-
There’s not many providers out there
mation and the migration to the cloud
that can do that at the moment and it’ll
means businesses have to change their
be a crucial differentiator for Basefarm,
traditional operating focus. “It used to
and Orange Group, moving forwards.”
be very much focused on big projects
Understandably, to provide such a
every couple of years, which required
level of service requires that Basefarm
a larger step-change,” he states. “It’s
works with several leading technol-
not like that anymore. Organisations
ogy providers, including AWS. The
are faced with constant change or
company is currently Norway’s first
evolution, with a continuous flow of
AWS managed service provider, a cer-
projects to manage and learn from, so
tification that enables it to offer greater b u s in e s s c hie f. e u
145
B A S E FA R M
“ WE CAN OFFER A TOTAL SOLUTION THAT FEW OTHER COLOCATION DATA CENTRE PROVIDERS ARE ABLE TO IN TERMS OF DELIVERY AND COMPETENCE” — Petter M. Tommeraas, Senior Vice President Data Center Services, Basefarm
146
AUGUST 2020
expertise in cloud infrastructure and application migration. “As well as AWS, we have several big partnerships,” says Tommeraas. “For example, we’re certified by Microsoft for a lot of our work on public cloud, and we also have long standing relationships with companies such as HPE, Lenovo, VMWare and Dell. Each of these is really about the partnership for us more than just the delivery. We want to work very closely with each of our partners to put bestin-class products to the market, it’s beneficial to us and our customers.” Technology aside, sustainability is a key driver of data centre innovation, not least due to the significant amount of energy consumed by such sites. It is here that Basefarm has a distinct advantage in its Norwegian location. “We’ve carried out a lot of analysis over where the industry may go over the coming years, and for us, Norway is the obvious choice. It offers low-cost power and 100% renewable energy, which is really important for us and our customers’ environment strategies. Obviously, it’s also easier to cool data centres in our climate as opposed to other locations, but there b u s in e s s c hie f. e u
147
B A S E FA R M
148
“ PUBLIC CLOUD IS AN AREA THAT IS GROWING VERY RAPIDLY AND WE HAVE A VERY BROAD SUITE OF DELIVERABLES IN THIS AREA” — Petter M. Tommeraas, Senior Vice President Data Center Services, Basefarm
are also other, more practical reasons. In Europe, 80% of the market is in Frankfurt, London, Amsterdam, Paris and Dublin, and each of those locations is getting pretty crowded. “I see two distinct trends. On the colocation side, there’s a lot more international interest in putting data centres in Norway,” he continues. “But through Orange we’re also moving into a number of other markets such as the UK, Italy, Spain, Switzerland and Belgium for example. In that sense, the
AUGUST 2020
2000
Year founded
€135mn+ Revenue in Euros
766
Number of employees
future outlook is definitely more of a
is getting fiercer. We’re in a very good
pan-European project, with us also
place, but you have to be mindful that
eyeing work in the US and Far East for
to survive and prosper you need to be
a number of clients.”
offering true best of breed solutions
More broadly around future developments, Tommeraas notes several
that take into account the increased value of data to all organisations.”
trends around the technology side of data centres. “Density is increasing,” he states, “so putting greater levels of power into smaller sizes - that totally changes the way you have to think and build in terms of cooling and so on. More generally, the competition b u s in e s s c hie f. e u
149
150
DPR: collaboration and sustainability in construction WRITTEN BY
WILLIAM SMITH PRODUCED BY
LEWIS VAUGHAN
AUGUST 2020
151
b u s in e s s c hie f. e u
DPR
Damian Farr, Managing Director Europe at DPR Construction, on the company’s technological and collaborative approach to data centre construction
D
PR Construction is a global specialist in technical construction, working in five core markets – advanced technology,
commercial, healthcare, higher education and life sciences. Damian Farr is Europe Managing Director at the company. “We’re proud builders,” he says. “Fundamentally, I think we understand that construction is a service industry. We’re striving to 152
be an extension of our customers’ organisations by putting their projects and end goals first, and always thinking about how they need to use the building.” DPR is playing a big part in fulfilling the ever growing need for data centres, as Farr explains, “In the last four to five years we’ve built close to $3.5bn of mission critical facilities across 200 separate projects, but our data centre heritage stretches right back to our founding.” DPR has grown rapidly since its foundation in Silicon Valley in 1990 and is now one of the 10 largest general builders in the US. “In those 30 years, something very special has happened, which is the idea that everybody’s working together to achieve the same thing: we exist to build great things – not just great buildings, but people and relationships as well. It’s an idea that’s very sincerely held throughout the business.” AUGUST 2020
153
b u s in e s s c hie f. e u
DPR
“ We are working for customers who are delivering buildings that have become absolutely critical to our infrastructure” Damian Farr, Managing Director Europe, DPR Construction 154
The company has far from a conventional structure, operating with a shared leadership model. “We very much have a model of distributed leadership throughout the company, and that resonated with me profoundly,” Farr explains. “We’re title-less internally, which empowers employees at every level to be independent, do their best and make change for our customers and our business. Put simply, it’s really about eliminating barriers between two people having a conversation.” Effective collaboration has, from the start, been DPR’s desire. “We pioneered integrated project delivery. We bring stakeholders together – architects, customers, trade partners, our own team – right from the outset,” explains Farr. “We work in five core markets and we seek to know them very well. We want to work on buildings that matter and also that challenge our teams. That’s what we enjoy doing. The collaboration that we bring to our projects is therefore key. We really do like working with customers that we enjoy – a true partner who wants to help us change the world as well.”
AUGUST 2020
DPR: great teams building great things CLICK TO WATCH
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CONSTRUCTION TECHNOLOGY
or prefabrication, or integrating project
Virtual design and construction, in broad
teams and improving collaboration.”
strokes, refers to the practice of using
Digital technology is a hallmark of the
digital tools to drive real value in the
firm’s approach, but it is always used
construction process. It’s a trend that’s
purposefully. “It’s all really about collabo-
long been transforming the industry,
ration and providing that single source of
and one which DPR embraces whole-
truth that the whole team can go to and
heartedly. “First and foremost, our role
talk through. Things like building infor-
is really to try and innovate in the areas
mation modeling and consulting, and
that we can control such as construc-
then execution. We use model-based
tion technology and best construction
quantity takeoffs for our estimating. We
practices. And that’s where we’ve had
then use the model to generate prefab-
the greatest success, whether it’s in the
rication processes and go straight from
field of virtual design and construction,
the model into manufacturing.” b u s in e s s c hie f. e u
DPR
Alongside a host of other applica-
PEOPLE, PLANET AND PHILANTHROPY
tions, DPR is also investigating the
Sustainability as a whole is highly
use of emerging technologies to
important to DPR, with the company
further refine their approach. “We’re
following a model of global social
now looking at artificial intelligence
responsibility. “We want to be integral
applications, of which we were an
and indispensable to our communi-
early supporter. There is the potential
ties, and that’s been a long held view
to create AI constructability analysis.
of the business.” DPR has three pillars
The hope is that, if we’re missing some-
guiding its approach, namely: people,
thing, the software and the technology
planet and philanthropy.
can generate some different thinking
In thinking about data centers and
around how we might optimise the
the first pillar – planet – efficiency is
construction sequence.”
key. “The energy efficiency of the
156
AUGUST 2020
buildings we’re constructing is important. And as governments start to worry a little more about data centers and their energy use, we have a role to play in helping our customers figure out the best solutions.” Avenues being explored include the use of thermal aquifer storage. “That’s an important step that we can make in the here and now. We take it very seriously and we are trying to play our part in solving the problems that our customers are facing.”
1990
Year founded
$5.8bn+ Revenue in US dollars
6,500 Number of employees
157
b u s in e s s c hie f. e u
DPR
158
AUGUST 2020
“
We exist to build great things – not just great buildings, but people and relationships as well” 159
Damian Farr, Managing Director Europe, DPR Construction
b u s in e s s c hie f. e u
DPR
When it comes to taking care of the planet, DPR takes a more active role, leading by example with six net-zero and three WELL Certified offices throughout the business to date. “DPR walks the talk. We have net-zero energy offices that we’ve built ourselves and we’ve led the way in that. We take our responsibility to reduce our impact on the natural environment very seriously and embody that through pretty much everything we do.” With the people pillar, Farr is clear 160
that DPR puts diversity, equity and inclusivity first. “We truly want to look the way that our communities look. I know it’s an easy thing to say, but it’s not enough to level the playing field – some people in some communities are going to need extra help.” The latter pillar includes community initiatives by local office teams as well as a separate DPR Foundation that issues direct cash grants to causes. “There’s a strong volunteering ethos within the business,” says Farr. “We have year round initiatives such as volunteering directly to renovate a building or volunteering on a pro bono basis to provide organisations construction advice.” AUGUST 2020
161
“Famously, DPR doesn’t have titles” Damian Farr, Managing Director Europe, DPR Construction b u s in e s s c hie f. e u
DPR
162
“ We want to be integral and indispensable to our communities”
WHAT’S NEXT Like all companies, DPR has had to face up to the ongoing COVID-19 pandemic, but Farr emphasises the company’s readiness, being preexisting heavy users of collaboration software. Of course, as a construction company most work cannot be carried out remotely, but DPR has found a way through. “In Europe, we haven’t had a
Damian Farr, Managing Director Europe, DPR Construction
single project closed down to date. We have adapted, and I’m very proud of the ingenuity our teams have shown to keep job sites safely moving, because
AUGUST 2020
163
we are working for customers who are
we can make sure that any physical
delivering buildings that have become
distance requirements are upheld.”
absolutely critical to our infrastructure and our new ways of working.” Farr believes that construction after
With things like 5G and cloud coming down the pipeline, well-built data centres are set to become ever more
the pandemic will move to a ‘next nor-
necessary. Farr believes DPR is well
mal’, which has been some time coming,
suited to thrive going forwards. “We’re
the pandemic hastening its arrival. “In
a company that’s incredibly agile
the future there may be fewer people
– that’s always been our way. Our found-
on site, but we’ll create space for pre-
ing principles are as relevant today as
fabrication and offsite construction to
they ever have been. We respect the
really come into its own. We can build
individual and we change the world.”
parts of our buildings away from the job site in controlled environments where b u s in e s s c hie f. e u
Transforming banking by building on the cloud WRITTEN BY
WILLIAM SMITH 164
AUGUST 2020
PRODUCED BY
JUSTIN BRAND
165
busi ne ssc h ief . eu
ATOM BANK
Rana Bhattacharya, CTO, Atom bank, guides us through the benefits of being a challenger, the response to COVID-19 and the company’s upcoming launch of its new banking platform
L
aunched in 2016, Atom bank was the first UK bank built exclusively for mobile, with the intention of never hav-
ing any physical branches. Its approach has won it significant plaudits, including a position in 166
Tech Nation’s Future Fifty, alongside being the number one rated UK bank on consumer review site Trustpilot. The company’s Chief Technology Officer, Rana Bhattacharya, is clear that part of the reason for its success is its smaller team and challenger culture. “We get a lot done with not a lot of people,” he says. “There’s a level of bureaucracy that’s removed, meaning you can make decisions quickly. And by virtue of that, small teams can accomplish brilliant outcomes and create changes and deploy them to production on the same day. As a digital native you have to embrace change. Whereas in some of the traditional banks, with the governance models and the people that have been there for a long time, it’s much harder for change to happen.” AUGUST 2020
167
Rana Bhattacharya, CTO, Atom bank busi ne ssc h ief . eu
ATOM BANK
“ Everyone just got on with it and made it work, and you can only do that if you already have the capability and the culture to make those things happen” — Rana Bhattacharya, CTO, Atom bank 168
Atom launched with marketleading Fixed Saver accounts and secured business lending for SMEs. It followed with mortgages in December 2016 and since then has taken £1.8bn in deposits and lent over £2.4bn to small businesses and homeowners. “We exist to create better outcomes for our customers,” says Bhattacharya. “We’re leveraging technologies to automate more and provide a first-class service to them. And by not having the baggage that some of the more traditional
AUGUST 2020
Welcome to Atom bank CLICK TO WATCH
|
0:10
169 banks have, we can create material
and put Atom and our customers
savings to pass on to our customers.”
in control. For a bank that’s building
The bank is undergoing a techno-
itself for long-term sustainability
logical transformation, launching a
and delivering true customer value,
brand new banking platform more
investment in the right technology
in step with how the market has
is key.”
developed. “Cloud hosting of banking
“We’re heavily using DevOps, so
software wasn’t an option when Atom
IT4IT,” he says. “Historically if you
was authorised,” says Bhattacharya.
imagine an on-premise environment,
“As a business committed to taking
especially with a third party model, it
advantage of the very best systems to
can take up to 42 weeks, if you’re lucky,
run our bank, and with investors who
to commission a new instance. Now, on
are right behind our commitment to
the cloud using DevOps, we can stand
technology, we are adopting systems
up an instance of the bank on the cloud
that are built specifically for the cloud
in under a week. That gives you a lot busi ne ssc h ief . eu
“Working with Thought Machine has been revolutionary. The Vault platform is quick and agile. Its unique features enable us to bring new experiences to banking with velocity, all the while keeping quality high and costs low.� Rana Bhattacharya, CTO Atom bank
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The revolutionary power of the cloud The world’s largest technology brands - Netflix, Spotify, Google - all operate exclusively on the cloud. Yet it’s a universal truth that the banking industry has been held back by legacy technology stifling innovation, and at huge costs. While banks accept that a move towards modern, cloud native systems is necessary, fullscale banking transformation can be daunting. Meanwhile, the next wave of challenger banks are able to start afresh and build their bank in the cloud.
The benefits of a Vault engine At Thought Machine, we created a product to power any bank. Our product is Vault, a cloud native, core banking engine. Vault was built by former senior Google engineers, and can be configured to run any type of bank and launch any type of product. Vault’s unique features enable banks to transmit their vision into the hands of the customers, while taking full advantage of the cloud. Innovation Vault’s hyper-configurable platform enables banks to reinvent customer experience as new features and interfaces can be designed and rolled out quickly and with more agility. Banks powered by Vault are ‘always up’, even during product launches.
Security Vault’s technology is designed to provide security through all levels of the infrastructure. If a server in the cloud malfunctions, another server is spun up to absorb the functions, ensuring that the bank doesn’t have to go offline. Meanwhile, data is encrypted creating superior analytics as banks can capture, store and view data to identify unusual behaviour. Automation Vault operates a highly automated DevOps environment – nearly everything traditionally done with manual intervention in a traditional data centre can be performed automatically. This means banks can regain control of their workflows, while keeping costs low.
Partnering with Atom bank Atom bank chose Vault to power its bank as they wanted a platform that would enable them to keep innovating at pace, just as they did when they brought biometrics to UK banking. Since partnering with Thought Machine last year, Atom bank has been leveraging Vault’s cuttingedge technology to streamline their workflows and bring new products to market with speed. Our teams will be working together to launch products designed with unique features to bring unseen experiences to the banking industry.
ATOM BANK
172
of capability by virtue of not being
offer us a managed service that we’ll
hamstrung by the number of environ-
be plugging into, but everything that
ments. The cost model is different
we manage and change ourselves
because effectively you can spin
will be hosted on the cloud. We’re
up an environment and once you’ve
effectively building a state-of-the-art
used it, you can kill it (treating envi-
bank hosted on Google Cloud.”
ronments as cattle, versus pets).” The Atom banking machine is what
The company is also leveraging emerging technologies for such
Bhattacharya calls the new cloud-
things as enterprise decision-mak-
based infrastructure and associated
ing, including pricing and financial
software components. “The majority
forecasting. “We’ve built an in-house
of the estate is being moved onto
machine learning model to inject
Google Cloud Platform. We’ll still
some insights into that. From an
have a number of third parties who
operations perspective, we use
AUGUST 2020
machine learning to support activi-
traffic by default alongside not trust-
ties like credit risk scoring, instant
ing the device. We always look to
pricing quotes for business banking,
leverage a zero-trust model, which is
and anti money-laundering identifi-
important as a bank,” Bhattacharya
cation and prevention.”
reiterates. “We have a continuous
For a bank, security is paramount,
security testing cycle using third
and Atom’s cybersecurity protection is
parties to give us more information
comprehensive. It utilises encryption,
about security threats from their
access control, vulnerability manage-
perspectives. Our security is strict,
ment, firewalling, DDoS scrubbing
it’s very tight and we clearly classify
amongst other security controls to
data as part of managing it, as well
protect its customers’ data.
as from a security perspective.”
“We look at the full stack in terms of protection the app, has encrypted
The technology Atom uses is in service of providing a better
E X E C U T I V E P R O FILE :
Rana Bhattacharya Title: Chief Technology Officer Company: Atom bank Industry: Financial Services Location: Durham Recognised by Computing as one of the top 250 IT Leaders in 2019, and a member of the Executive Committee at Atom since April 2017, responsible for IT, Change and Programme Management. Rana has experience in large-scale systems development and delivery success for major players in the finance sector. Before joining Atom, Rana held roles such as Chief Architect at Nationwide Building Society and Senior Manager for Architecture and Delivery at Accenture. busi ne ssc h ief . eu
173
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“ I’m proud of Atom and proud of my team to have been able to get us to where we are now” — Rana Bhattacharya, CTO, Atom bank
away from using Unity for our mobile apps, which is more of a gaming platform, rebuilding it on native technology, running faster with a new UX. And that’s been quite well received. There’s still some improvements to make, but on iOS, we now have an app store rating of 4.6.” Google is a significant partner for Atom, with their relationship serving as a model for how Bhattacharya
customer experience, both directly
approaches suppliers and partners.
and indirectly. “We’re transform-
“Google not only provides us with
ing, not just from a technology
infrastructure but elements of data
perspective, but also by taking on
and other capabili-
more internal accountability,” says
ties. For us, it was
Bhattacharya. “We’re insourcing
quite an impor-
more, meaning that Atom can make
tant decision to
key changes across its IT estate
choose a cloud
without external resource require-
vendor.
ment enabling a greater pace of change. And this is the power behind Atom’s banking machine which fuses technology, people as well as data to provide benefits to our customers.” Other customer-centric achievements include the resolution of 97% of support tickets within SLA, and the improvement of its apps. “In December of last year, we moved busi ne ssc h ief . eu
175
ATOM BANK
176
AUGUST 2020
As we moved to the cloud, we wanted a partner, not a supplier, someone to engage with us as an entity, work with and help us. We felt having a partner - a real partner - was 50% of the transformation, someone on your side to help you succeed. And that’s what we found in Google.” Atom has found other partners to boost capability in other areas, as Bhattacharya explains: “Thought Machine has a pivotal role to play within our transformation. We’re looking to run Thought Machine as a cloud native, smart contractbased core banking platform on Google. What that will allow us to do is basically define any type of product we could imagine - and do this in house. As part of our launch in 2016, we partnered with DAON and pioneered the use of biometrics in the UK banking industry and led the way with face and voice biometrics as core credentials to log-in to your bank. As a team we continue to make improvements because we’re committed to exceptional customer experiences.” busi ne ssc h ief . eu
177
ATOM BANK
The ongoing COVID-19 pandemic is putting a strain on business worldwide, uprooting long-established ways of doing business. Bhattacharya emphasises the need for understanding during these difficult times, saying: “You have to put more emphasis on bilateral and team communications, as well as wellness. In terms of my team and colleagues, the current pandemic has brought a different perspective on life and the need to ensure, yes 178
you get the work done, but also that people are well and healthy both physically and mentally.”
“ By not having the baggage that some of the more traditional banks have, we can create some material savings to pass on to our customers” — Rana Bhattacharya, CTO, Atom bank
Bhattacharya credits the company’s resilience to its employees. “I think it’s a testament to the folks in our team. We implemented home working very rapidly - before the official lockdown came into place. In terms of our security and the networks team, within a two to three week period, they got all of our employees working from home successfully, including the contact centre. I don’t think we would be able to support and service our
AUGUST 2020
179
customers the way we have been
with a small number of people and
able to, if we hadn’t had that inherent
a comparatively small budget is sig-
capability in the bank. Everyone just
nificant. I’m proud of Atom and proud
got on with it and made it work, and
of my team to have been able to get
you can only do that if you already
us to where we are now, closing off a
have the capability and the culture to
few items to get us ready to go live.”
make those things happen.” As Atom comes close to going live with its Banking Machine, Bhattacharya is clear that it has been down to the dedication of his team in challenging and uncertain circumstances. “What we’ve done busi ne ssc h ief . eu
180
Understanding and resolving customer challenges WRITTEN BY
WILL GIRLING PRODUCED BY
BEN MALTBY
AUGUST 2020
181
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Three executives at Panasonic provide their insight into how the company builds, maintains and expands its customer relationships using technology
N
ow in its 102nd year, Panasonic has transformed itself from a small electronics manufacturer making components
including lightbulb sockets in Osaka, Japan into one of the world’s most successful consumer electronics corporations and provider of B2B 182
technology solutions. Although technological innovation and sophistication have been a crucial part of that journey, it is likely that Panasonic’s success would have taken a different form were it not for its equal dedication to customer-centric operations and engaged problem-solving. To learn more about how the company continues to exceed expectations by understanding, anticipating and resolving the challenges faced by its customers, we spoke with John Harris, GM for European Tech Strategy at Panasonic Toughbook, Ian Woozley, Head of Supply Chain Solutions UK&I and France at Panasonic Business, and Jonathan Tucker, GM for Solutions and Engineering at Panasonic and GM for Solutions Development and Implementation at Panasonic Toughbook and Toughpad.
AUGUST 2020
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“ We’re very much an engineering company” — Jonathan Tucker, GM – Solutions & Engineering, Panasonic
what it creates. “We’re very much an engineering company,” adds Tucker. “Our position as a historically wellknown brand has been solidified by our consumer goods items, TVs, and DVD players.” However, not satisfied with merely enjoying the rich legacy that it has accumulated, Panasonic continues to keep its sights fixed firmly on
When considering the recurring
184
the future: circa 6% of its global turno-
patterns which are driving the com-
ver is reinvested in R&D (research
pany’s success, Harris summarises
and development), an approach which
it succinctly: “It’s always been about
has netted the company substantial
solving problems or solving a need
acclaim from consumers and a robust
with innovative products.” Indeed, the
portfolio of over 15,000 products.
company’s daily ethos is to contribute
Despite this impressive range,
value to customer’s lives through
Tucker clarifies that the company, first and foremost, values its employees and clientele above all. “What I love about the organisation is the degree of autonomy we’re given to go and try something new. It’s very much
AUGUST 2020
Panasonic Toughbook Rebuilding Together CLICK TO WATCH
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1:38
185 a people before products attitude.”
the quality of Panasonic’s work. “Our
It is because of this that Panasonic
focus now is to replicate the success
positions itself as a problem-solver,
that we’ve built in Japan and bring it to
which subsequently means that it
the Western world,” says Woozley.
keeps abreast of the latest industry
Underpinning this desire for greater
challenges and stays relevant to
brand expansion is ‘Gemba process
customers. Furthermore, rather than
innovation’, a cultural transforma-
simply finding surface-level worka-
tion strategy being driven by Japan.
rounds, the company develops holistic
Originating from the Japanese word
solutions that incorporate hardware,
‘Gemba’ meaning ‘where it happens’
software and aftercare to ensure
or ‘the actual place’, Gemba process
long-term value. It develops these
innovation is a management phi-
solutions shoulder-to-shoulder with
losophy which induces thought on the
the client themselves, building strong,
optimal method for innovating and
durable relationships which recognise
streamlining an aspect of business b u s in e s s c hie f. e u
Lind’s mobile power adapters are engineered to deliver regulated, reliable power – keeping you connected even in the most rugged environments. With our extensive portfolio of standard and customizable solutions, we ensure you get the highest level of dependability and performance out of your mobile devices. To learn more about our power adapters, shut down timers, cables, custom connectors and other mobile power solutions, please visit us at www.lindelectronics.com.
“ Our goal is to bridge the physical and digital worlds using our technology and provide the know-how to become a trusted technology partner delivering value” — Ian Woozley, Head of Supply Chain Solutions, Panasonic
according to three core strengths: 1) More than a century of experience within the manufacturing sector;
in an environment of rapidly changing
2) A portfolio of differentiated tech-
conditions and customer requirements.
nology, including robotics, image
“Enhancing our world by providing
processing, sensors and more; and
ever greater convenience is a major
3) A storied reputation of trust within
challenge for people at any enterprise.
the business community: B2B repre-
Fundamental solutions to complex
sents a large proportion of company
issues require process innovation
sales and its clientele extends
where things get made or distributed.
across several industry segments.
Our unique insight allows us to
Summarising the programme, Woozley
propose and enact comprehensive
adds, “Gemba process innovation
gemba-focused solutions that address
is about focusing on the job at hand,
today’s changing value network. By
knowing what the client’s trying to do
proactively bringing about innovation
and bringing the experience which
within our customers’ gemba opera-
Panasonic has accumulated over the
tions, we are helping to ensure a better
last 100 years to help them get there.”
life, a better world,” says Woozley. “Our goal is to bridge the physical and digital worlds using our technology and provide the know-how to become a trusted technology partner.” The company positions itself in this space b u s in e s s c hie f. e u
187
PA N A S O N I C
Introducing the TOUGHBOOK 55 CLICK TO WATCH
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188 One example of this process in
to 25 years ago you would look at
action within Panasonic itself is
older generation technology and
its Toughbook product. Originally
put it in a hard shell. Things are a little
introduced in 1996 with the CF-25
bit different nowadays: you’ve got to
model and still popular to the pre-
be very aware of the user’s expecta-
sent day through various iterations,
tions.” Indeed, the company has kept
Toughbook is a rugged laptop aimed
on top of developing tech trends for
at workers in the field who operate
customers by scoring some ‘industry
within industrial sectors, such as
firsts’ in its Toughbook line, includ-
construction, oil and gas or utilities.
ing the first mobile computer with
Although a product which has stood
Bluetooth capabilities (CF-M34), the
the test of time, Harris emphasises
first rugged tablet concept (CF-07)
that this doesn’t mean Panasonic’s
and the first rugged personal digital
strategy hasn’t needed to still remain
assistant (CF-P1). Over time, the
flexible. “It used to be a case that 20
Toughbook line has also included
AUGUST 2020
rugged smartphone designs (FZ-X1
evolved into other types of solutions.
and FZ-E1), the Toughpad (JT-B1)
But that innovation is why we’ve led
and many others. “We had to cre-
the market.”
ate agile, mobile working solutions
Panasonic’s Toughbook product
for engineers so they wouldn’t have
displays its ethos of making technol-
to go to a depot every day to pick
ogy which is durable, easy to use
up paperwork; they now have the
and tailored specifically to the peo-
convenience to start work from their
ple who use it. “It’s a tool like any
house,” Tucker says. “Some of those
other,” continues Tucker. “It’s like
models have taken off slowly and
a spanner or a screwdriver; it’s the
E X E C U T I V E P R OF IL E :
John Harris Title: Global R&D Director
189 Company: Panasonic TOUGHBOOK
Industry: Computer Hardware Location: United Kingdom John’s first field IT project commenced with six elevator engineers in 1996, since then he has been involved in the successful delivery of multimillion pound, complex field IT Projects to thousands of field workers for customers such as British Telecom, British Gas, ENEL, Daimler, EasyJet and Airbus. Working with everything from PDA’s to Tablets, GPS to RFID and Bluetooth to Zigbee, John’s expertise is in the innovative and realistic way to apply technology to reduce costs and improve productivity, creating real business benefit. John has a Masters Degree in Data Communications from Kingston University and is currently responsible for the global R&D effort specifically looking at how technology can solve real world problems and add value to our customers business. b u s in e s s c hie f. e u
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190
1918
Year founded
Â¥8trn+ Revenue in yen
270,000 Number of employees
AUGUST 2020
“ For me, the story of digital transformation really starts with the customer” — John Harris, GM – Euro Tech Strategy, Panasonic
191
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192
tool that our customers use to get
of corporate transformation either. “I
the information they require to do
think COVID-19 has pulled our digitali-
their jobs, to be more productive and
sation plans forward, particularly with
more efficient.” Panasonic’s approach
video con-ferencing and remote work-
could be summarised, then, as creat-
ing.” For a company which prides itself
ing tech products with the utility and
on face-to-face interaction with cus-
reliability of a hammer. It’s a refresh-
tomers, the ‘new normal’ changes this
ingly straightforward approach to
dynamic but doesn’t fundamentally
digital transformation, focusing on
alter how it wants to do business.
what is useful for the customer and
“Panasonic’s goal is to provide the right
disregarding aspects which do not
tools to the right people at the right
contribute towards this goal. However,
time.” Harris adds to this point, saying:
Woozley clarifies, this isn’t to say that
“For me, the story of digital transforma-
Panasonic has been sluggish in terms
tion really starts with the customer.”
E X E C U T I V E P R OF IL E :
Ian Woozley Title: Head of Supply Chain Solutions Company: Panasonic Industry: Computer Hardware Location: United Kingdom Ian Woozley is Panasonic’s Head of Supply Chain Solutions for the UK, Ireland and France. He is responsible for business development in these countries, with a mission to help customers in retail, logistics and manufacturing transform their operational efficiency at scale and realise business success. Prior to his current role, Ian was responsible for driving Panasonic’s solution roadmap in Europe, working closely with Panasonic R&D to ensure the Company’s offer fits with the key strategic priorities of its customers. Ian has been in similar roles in Panasonic for eight years, driving key account development, partnerships and innovation in North America and globally from Japan before his current European role. AUGUST 2020
193 D I D YO U K N OW?
Lind Electronics – a quality supplier One of Panasonic’s core partner companies, Lind Electronics is a leading provider of rugged mobile power solutions with a reputation for innovation, reliability and durability. Supplying Panasonic with car chargers, Lind is recognised as an important contributor to the company’s ecosystem. “We’ve worked together for several years; Lind is a major
partner and is the only company we use around car charging,” states Tucker. “Its product is really important to Panasonic.” Woozley adds. “We have an open and honest working relationship with Lind and we’ve overcome a lot of challenges together. Lind is a quality supplier and by far the number one in its field in our estimations.”
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195 This is where a wider series of strategic collaborations and acquisitions with other entities such as Zetes, wholly owned by Panasonic, and Blue Yonder, in which Panasonic holds a 20% stake, play a key role: providing digital transformation solutions to customers across their supply chain. Asking questions and interacting with other entities keeps Panasonic at the forefront of evolving customer needs: “We’re always thinking ‘how do we digitalise that process?’ or ‘how do we take something that would have traditionally been manual and challenging and make it smart and
“ Some of those models have taken off slowly and evolved into other types of solutions. But that innovation is why we’ve led the market” — Jonathan Tucker, GM – Solutions & Engineering, Panasonic b u s in e s s c hie f. e u
PA N A S O N I C
easier?’” Woozley states. “It’s a journey that we’re constantly embarking on, working out what data can be made actionable.” This has also led the company to explore applications for technology like thermal and depth measurement cameras, something which Tucker says marries closely with the Gemba programme. “We’ve got a number of large organisations trialling this equipment. Over the next 12 to 24 months, we’ll take the collected 196
E X E C U T I V E P R OF IL E :
Jonathan Tucker Title: GM – Solutions & Engineering
Company: Panasonic
Industry: Computer Hardware Location: United Kingdom During his 20+ years with Panasonic, Jon has gained extensive experience working as the technical lead in the deployment of mobile technology solutions with some of Panasonic Toughbook’s largest customers, including British Gas, BT, Iveco and Ford. With a software engineering graduate background, Jon has held a variety of engineering, operational, service management and product marketing positions with Panasonic. He now is responsible for Engineering, Solutions, Quality & Product Marketing and loves everything Toughbook and Technology. Jon loves to watch sports in his spare time, especially with his son playing junior rugby and football, and enjoys travelling. AUGUST 2020
data and then present it in an intelligi-
to see past the mere novelty of new
ble way which will help people increase
technology and instead focus on
their productivity and efficiency.”
its customer-centric application
Trends such as automation can
which distinguishes Panasonic from
similarly unlock pathways to business
competitors in the field and will continue
optimisation, but Woozley makes it
to shape its approach going forward.
clear that the most effective automa-
“We want to understand what the chal-
tion shouldn’t sacrifice the human
lenges customers are experiencing
touch. “A lot of what Panasonic is
and use our insights to solve them.
exploring is based on partial automa-
It’s about finding those tension points
tion and the retention of workers.
and then actioning them before they
Full automation isn’t necessary,
become pain points,” Harris concludes.
although it can be done; we consider partial automation more than adequate to improve workspaces and create a more efficient business in many circumstances.” It is this ability b u s in e s s c hie f. e u
197
198
T-Systems: agile transformation on a global scale WRITTEN BY
LEILA HAWKINS PRODUCED BY
BEN MALTBY
AUGUST 2020
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T- S Y S T E M S
Ciara Mullan, VP of Transition and Transformation, discusses implementing transformation in a challenging climate
T
-Systems is one of the most renowned IT service providers of digital services in the world. Headquartered in Europe and
founded in 2000 in Germany, today the company operates in 30 countries, helping organisations to successfully navigate the digital transforma200
tion of their operations, something that’s become crucial for many since the Coronavirus pandemic began. Ciara Mullan, VP of Transition and Transformation, tells us about implementing change in a challenging climate. Mullan says her top priority is the customer. “It’s about getting it right for the customer. When we get it right for them, everybody wins.” T-Systems’ strategy focuses on four key areas: digitisation, the cloud and infrastructure and moving people onto it, security, and connectivity. “We leverage these areas to drive the strategy for our customers,” she says. Mullan explains that T-Systems’ CEO, Adel Al-Saleh, who joined the company in 2018, came with a real drive to transform the organisation internally. “He’s brought in a transformation and change
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“ We know the speed of change will be rapid, so we need to think about how we manage that” — Ciara Mullan, VP of Transition and Transformation 202
agenda, focusing on our customers, lining up what we do internally with what our customers do and what they need. We can see this most recently in what’s happened in response to the coronavirus with our customers. It’s been a really trying time and an opportunity to test ourselves.” The pandemic led them to some positive outcomes. “If I think about what we’re able to do for customers, we had to quickly rise to the challenge of responding to coronavirus. We found that we have the procedures to work from home, we can quickly get our people to work this way, and we’ve also been able to see how capable we are when reacting to a crisis in an agile way.” It also had to act quickly to provide solutions to customers. “Over the course of one weekend a customer needed to double their network capacity in response to people working from home, and we could do that,” Mullan explains. In another case, a very large logistics company quickly received 15,000 encrypted connections for employees who needed to work securely from home, and it was also able to provide a US healthcare
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T-Systems: Always the perfect fit for your success CLICK TO WATCH
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203
company with 500 laptops and a thou-
transformation. That is leading to a
sand VPNs. “These examples show
focus on reducing complexity, optimis-
what we’ve been able to do for our
ing speed and giving the right focus
customers as a result of our transfor-
to our customers.”
mation. And that’s what has to happen
The organisation’s Zero Outage
– we don’t know what’s going to happen
programme has been developed with
in the future, but we know the speed
the aim of minimising downtime and
of change will be rapid, so we need to
maximising business continuity. It
think about how we manage that.”
involves clearly defined processes with
“We’re transforming our tools and
fast recovery times, using state-of-the-
our operations. That means having
art platforms, and ensuring staff are
programmes in place, being of an
fully trained. “Everybody is trained in
open mindset and working with people
Zero Outage procedures which is all
that share our culture, on a cultural
about stability. On one hand we need b u s in e s s c hie f. e u
NAVIGATE YOUR DIGITAL TRANSFORMATION WITH THE LEADER IN SD-WAN
See what industry experts say. Learn more at velocloud.com/leader
VMware and T-Systems partner on managed SD-WAN services We hear from Sasha Emmerling, Head of Marketing for the VeloCloud business unit at VMware, on changes in connectivity it is facilitating with T-Systems. When embarking on a digital or network transformation journey, enterprises need trusted partners to assist them in their endeavours. Sasha Emmerling is Head of Marketing for the VeloCloud business unit at VMware, which, via its SD-WAN product and other offerings, facilitates cloud connectivity at a time when it has never been more necessary. “Now, companies have applications trying to reach the cloud versus just the corporate data centre,” says Emmerling. “The old conception of branches connecting in a hub and spoke manner to the data centre just doesn’t make sense anymore. What we offer is direct connectivity to the cloud. So the applications don’t have to go this route of backhauling through the data centre to reach the cloud.” The convergence of network and security services is happening in the cloud. “The term is ‘secure access service edge’ or SASE,” says Emmerling. “What this means is customers can now get their network and security from a single vendor, but your architecture has to be designed for scaling in the cloud. That’s something we have been focused on from day one— providing customers with a way of reaching the cloud in a scalable and easy way.” VMware SD-WAN™ by VeloCloud® works with leaders in the field, including IT services consultant T-Systems. “Over the years, we have forged alliances with multiple service providers where they take our solution and integrate it into their service,” says Emmerling. “A service provider can take our SD-WAN solution and offer it as a managed service together with the connectivity services, but it goes beyond connectivity to
Sasha Emmerling @ VMWARE
upstream, managed services—such as security. That’s our relationship with T-Systems—they’re offering SD-WAN as an integrated, managed service to their customers in the European markets. We announced the partnership in September and right now we’re working on a joint go-tomarket strategy.” The collaboration of VMware and T-Systems represents a true partnership, as Emmerling explains. “Collaboration on go-to-market projects is important in general, but with telecom service providers and T-Systems in particular, it is critical. That’s because it’s a managed service. We are successful only if T-Systems is successful.” The partnership goes beyond the technology, running the gamut of services such as legal, operations, enablement and marketing. “Right now, with T-Systems, we’re going through this process and we expect astrong market showing—so stay tuned.”
Learn more
T- S Y S T E M S
206
to do things quickly – and we can do
in joint developments and projects,
them – but we have to do them safely.
as well as technology and sales
By leveraging those fundamentals to
alliances. So we’re really getting
the company it helps ensure the digital
genuine benefits.”
transformation goes smoothly.” Also important is having a strong
It has a particularly long-standing relationship with VMware, which it has
partnership model in place. Mullan
been working with since 2005 on
explains this ensures the company
virtualisation and cloud solutions,
is doing the right things both for its
helping T-Systems customers expand
customers and itself. “Our partner-
and secure their virtualised IT.
ships with leading technology and
“The point of these partnerships is
software enterprises are really one
to pave the way for digitalisation, pro-
of our strengths. For customers,
moting growth and innovation for the
we’re collaborating with specialists
enterprise, and T-Systems is certified
AUGUST 2020
E X E C U T I V E P R OF IL E :
Ciara Mullan PhD Title: VP Transition & Transformation
Location: Bristol, UK
Ciara Mullan began her career as a Research Fellow at McMaster University in Ontario, Canada, where she first started enjoying working on technological innovation. After a couple of years there she moved back to the UK and into industry, working on customer facing programmes for HP. She then moved into IT and worked on the delivery of multi-million pound technology programmes across various industry sectors. Throughout her career Mullan has worked on delivering programmes, particularly focusing on customer delivery, but says her current role as VP for Transition and Transformation is “really taking it to another level”, working with customers across different geographies and cultures. Mullan describes herself as having an open mindset, whether it’s being open to challenging the business, to getting the ideas from colleagues and her team, learning and moving on quickly, and having an agile, flexible approach. Rather than manage people she believes in leading and guidingpeople through the business and steering them in the right direction. “It’s about moving away from management and being pragmatic, thinking of the big picture and being objective in what we need to do. Get the right people in and let them do the right job.”
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T- S Y S T E M S
208
2000
Year founded
$8bn Revenue in US dollars
to participate in key strategic partner programmes by industry leaders like SAP, Microsoft and VMware. In addition, because these are two-way partnerships, we need to make sure that our own high quality standards are
45,000 Number of employees
met, and we work with more than 20 partners who contribute to our Zero Outage programme to improve customer satisfaction.� Customers give T-Systems their feedback via its annual TRI*M survey,
AUGUST 2020
“ Our partnerships with leading technology and software enterprises are really one of our strengths” — Ciara Mullan, VP of Transition and Transformation
and in 2018 it was in the top 10% of the European ICT benchmark. COVID-19 has made people think differently about the way they work, which Mullan believes will continue to drive plenty of change. “It presents a real opportunity to challenge what is normal. Even people who were maybe reluctant to change will think that because they were able to and did it very quickly, they should continue to challenge themselves.” Looking ahead, Mullan believes things will continue to move at a fast
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Future Cloud Infrastructure – your path to hybrid cloud CLICK TO WATCH
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T- S Y S T E M S
“ Technology itself is going to increase its digital position with mobile, Big Data analytics and the Internet of Things” — Ciara Mullan, VP of Transition and Transformation 210 pace. “The market for IT and telecommunications was undergoing radical transformation, and that will continue. There’ll be more focus on quickly moving to the cloud and outsourcing business. We’re seeing more demand for transmission speed, mobile services and increasing 5G. We’ll continue to bring connectivity and intelligence to help our customers with new business models, and focus on new levels of productivity and transforming the customers’ experience. “Technology itself is going to increase its digital position with mobile, Big Data analytics and the Internet AUGUST 2020
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“ I think the next fi e years are going to be very interesting, with lots of opportunities” —Ciara Mullan,
VP of Transition and Transformation
AUGUST 2020
213
of Things. We’ll continue to be in there
by mobility, and also by cybersecu-
with high expectations for the business
rity, which of course is in the DNA of
technologies, some of which are in
T-Systems. I think the next five years
the earlier stages of adoption, such
are going to be very interesting, with
as robotics and AI, or even blockchain,
lots of opportunities.”
but they’re all coming to the fore. “What we can see, along with other suppliers and other people we work with, is that the traditional IT business will decline and will be taken over by the digital transformation, by the cloud, b u s in e s s c hie f. e u
214
LEVERIS: REINVENTING BANKING THROUGH D I G I TA L TECHNOLOGY WRITTEN BY
MATT HIGH PRODUCED BY
JAMES PEPPER
AUGUST 2020
215
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LEVERIS
Conor Fennelly, LEVERIS founder and CEO, discusses how the company is reinventing banking with its innovative, cloud-native platform
L
EVERIS was born out of a single aim: to use the power of digital technology to build a better banking experience. The
complexity that is inherent in many legacy banking platforms and infrastructure is hindering evolu216
tion in the financial services industry. As a result, according to LEVERIS, those institutions are at a fundamental point of change where, rather than evolve, they must invent to remove the constraints imposed by existing technology. Since its founding four years ago, the company – which is driven by more than 200 individuals with extensive banking and technology experience – has worked to solve this problem. It has done so by designing and building an innovative, cloud-native platform that is unencumbered by existing systems and enables banks and financial institutions the freedom to offer customers tailored experiences. LEVERIS is led by CEO and founder Conor Fennelly, a highly experienced tech entrepreneur who, over the course of a career that includes a 20-year stint in Silicon Valley, has founded and led AUGUST 2020
217
2016
Year incorporated
200+
Number of employees
b u s in e s s c hie f. e u
LEVERIS
several high-growth internet startups.
Southeast Asia’s largest independent
The company, he says, is built on the
systems, integrations, and technol-
belief that “it’s not so much a case
ogy and software companies, where
of banks failing their customers, but
he worked on bank-to-bank systems
more a case of technology failing
integrations projects. “We used that
banks. The systemic problems fac-
experience to develop a micro-billing
ing banks can be addressed almost
software solution, which acted as a
entirely via technology.”
financial services layer between credit
This approach, says Fennelly, was
cards and gift cards and scaled very
cemented during his previous interac-
well,” he adds. “From there, I’ve also
tions with the financial services sector.
completed several core transforma-
This includes five years running one of
tion projects in the sector and, through
218
AUGUST 2020
219
“ We provide the platform to build what they want, to implement their strategy and achieve their version of success” — Conor Fennelly, Founder & CEO, LEVERIS
b u s in e s s c hie f. e u
LEVERIS
220
that experience and over that time, we
resilient, and stood the test of time with
really understood what a banking plat-
no major issues until about five years
form was - all the existing peculiarities,
ago. The rise of fintech really changed
legacy issues and complexities.
things. It started disintermediating, and
“Each time you do an implementa-
showing banks that innovative technol-
tion of that kind, the result is always
ogy can be used to do things faster
suboptimal,” Fennelly continues. “We
and better, to operate in real-time and
reached the stage where we thought:
provide greater value to the customer.”
‘if we had the freedom to do it again,
The latter, Fennelly notes, is becom-
how would we do so differently and
ing increasingly important as a driver
in a way that eradicated all of those
for change. Customers want more
issues?’. Legacy systems have per-
control over their finances, as well
formed well - they’ve been robust and
as the convenience and value-added
AUGUST 2020
service to exercise that control when they choose - this can be provided by the kind of data-focused technology that doesn’t exist in legacy systems. “There are several key issues,” Fennelly explains. “In some respects, it’s not so much the technology itself as the organisational composition that sets everything in silos - you have deposits,
“ Banking isn’t radical, it just has to be better” — Conor Fennelly, Founder & CEO, LEVERIS
E X E C U T I V E P R OF IL E :
Conor Fennelly
Title: Founder & CEO
221
Company: Leveris
Industry: Financial services Location: Dublin, Ireland Conor’s career has been defined by an ability to identify and solve practical problems by developing innovative digital solutions and delivering them at scale. His modus operandi is low profile, high impact. Various ventures, including Nomad Software Solutions and eoBuy, have taken him from Ireland to Silicon Valley, South East Asia and many places in between. Technologies he has conceived and built have been licenced and deployed by governments and Fortune 500 companies in areas such as systems integration, bank transformation, mobile phone networks and digital music distribution.
b u s in e s s c hie f. e u
LEVERIS
“ We set out to build a next-generation full services retail bank, and part of that was really about considering what the bank of 2030 looked like.” — Conor Fennelly, Founder & CEO, LEVERIS
222
AUGUST 2020
checking or current accounts, access control and so on, and they all have their own databases, which can equate to anything from 500 to 1,000 subsystems. The holy grail of banking is to have one single view of the customer, but that doesn’t really work as the fundamental data model in legacy systems isn’t established to deliver that from the beginning. “Similarly, existing technology is typically product oriented rather than being customer centric,” he adds. “Any new system has to be entirely focused on the customer - everything you do, irrespective of the service should accrue in one area and that data is then used across everything.” Fennelly also points to the high CapEx required to run a legacy system as a result of their complexity, adding that they are precarious to maintain and difficult to change due to their being non-homogenous. On the latter he explains “even the simplest of things can be overly complex; there are multiple vendors in a bank’s world and software written in different languages so that any change has to be coordinated through this complexity.” b u s in e s s c hie f. e u
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LEVERIS
LEVERIS offers an alternative to these issues. The company has built a system from the ground up, using state-of-the-art, best-in-class technology that is service driven and changes the way that businesses deliver financial products. The LEVERIS platform is a cloud-native, real-time, non-legacy core banking system that is modular, flexible and secure. It leverages big data to streamline operations for banks and lenders, and increase their revenue, uses process automation to 224
reduce the need to manual intervention and is configurable to each customer’s specific requirements. “Everything is automated end-toend and completed in real-time,” says Fennelly, “which are the major things in terms of how this changes the way in which banks operate. We set out to build a next-generation full services retail bank, and part of that was really about considering what the bank of 2030 looked like. We realised about a year into the build that, while we could build the technology stack, we couldn’t implement all the features on that stack unless we had a clear idea of what that bank looked like. From a customer AUGUST 2020
ANNOUNCEMENT
The LEVERIS platform is now live in the Dutch market, where it’s executing loans and servicing millions of euros for three clients of major financial services firm, Link Group. The platform has helped deliver a 70% reduction in average application to drawdown, enabled the onboarding of additional lenders to the platform in less than four weeks and delivered a significant reduction in operational costs for Link Group.
perspective, that’s all about advocacy and building an effective transactional relationship through the greater use of data, for example. Banks haven’t always architected customer data in a way that’s useful, but that data has a massive residual value for customers.” LEVERIS creates a single view of the customer by mapping all data to a unique customer ID. This gives a complete picture of the customer across the bank’s entire platform and allows the building of a personalised picture of the customer and their journey, thus enabling the building of an enhanced customer experience. The LEVERIS platform has a single customer view, is quick to market, has open APIs and connects the dots across a wide b u s in e s s c hie f. e u
225
LEVERIS
variety of data types, categories and systems; it is also scalable as their clients’ companies grow. “Many bankers are acutely aware of what they want from their technology stack, they’re just missing the product to do it - they’re constrained by the tech,” says Fennelly. “The interesting thing is that we don’t have a revelation about how these changes are translated in the front end, the fundamental pivot points that will make the difference are actually quite subtle. Take 226
the heart of the bank, the current or savings account. It’s an idea that’s set in stone and that the consumers
“ It’s not so much a case of banks failing their customers, but more a case of technology failing banks” — Conor Fennelly, Founder & CEO, LEVERIS AUGUST 2020
227
understand, but we have the notion of
about removing that complexity and
an ‘account’ with a set of attributes that
providing a technology that allows the
the bank can scale as it chooses.
building of any unique set of services
“The idea is that, if you look at bank-
for a consumer based on a very lim-
ing infrastructure of yesterday against
ited number of products in the back
that of the future, then you’ll see histor-
end. Adding a new card, a new per-
ically that banks have built thousands
son to the account or so on doesn’t
- even tens of thousands - of products,
increase the product complexity in
because any change or variation in
our world, and that’s a real revolution
things like different accounts has to be
in financial services. There’s no major
manufactured as a ‘new’ product,” he
technology required, it’s how you
continues. “The core of a transforma-
pose the pieces and, really, it’s about
tion and a platform like LEVERIS is
how far your imagination goes.” b u s in e s s c hie f. e u
LEVERIS
Currently, the LEVERIS platform is available for banks, lenders and loan servicers. For the former, the system is delivered market ready and preintegrated with the essential banking services required to launch and run a modern digital bank. “Take a typical legacy bank that has a number of branches as an example,” says Fennelly. “We can operate our platform completely independently as an additional branch in the
228
“ There’s no major technology required, it’s how you pose the pieces and, really, it’s about how far your imagination goes.” — Conor Fennelly, Founder & CEO, LEVERIS
AUGUST 2020
infrastructure, which lets our customers ‘plug LEVERIS in’ their world seamlessly as a starting point. Over time, we can then work on tactical strategic decisions of which legacy systems to take out and to migrate across to our platform. It becomes a natural evolution that leads to a greatly improved digital direction.” Since it was established, LEVERIS has focused on developing a platform that can transform banking. Little has changed since that original vision was developed, Fennelly explains, but the business is now focused on going to market. “Banking isn’t radical, it just has to be better,” he states. “And it also has to be capable of incremental, organic improvement. We’ve a blank platform that is given to every client, it’s up to those banks how they use our configuration interfaces to build the products they want - we don’t give them the technology to succeed, we provide the platform to build what they want, to implement their strategy and achieve their version of success.”
b u s in e s s c hie f. e u
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230
Eliminating waste through recycling and technology WRITTEN BY
WILL GIRLING PRODUCED BY
GLEN WHITE
AUGUST 2020
231
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TERRACYCLE
Béla Domokos, CIO of TerraCycle, discusses the importance of an agile tech infrastructure in order to fulfil the company’s goa of a circular economy
A
side from COVID-19, sustainability is arguably one of the foremost business challenges being grappled with across
industry segments. Founded in 2001, TerraCycle was established to deal with a singular problem in a focused way: the elimination of the world’s 232
waste. Now operating in 21 countries around the world, the company offers a range of simple platforms to facilitate recycling and lead the global shift towards a more eco-friendly incarnation of the customer’s shopping experience, with particular attention paid to the removal of single-use packaging. As global enterprise reorients itself in order to meet the ‘green’ expectations of modern consumers, TerraCycle will play an important role in transforming inefficient linear systems to fully circular economies. Speaking to us from an office building decorated in colourfully upcycled materials – old vinyl records arranged as hanging decorations, coats and old maps forming pictures on the walls – Béla Domokos, Chief Information Officer (CIO), makes
AUGUST 2020
233
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TERRACYCLE
“ Every person at TerraCycle, no matter where they are on the ladder, has the chance to make an impact” — Béla Domokos, CIO, TerraCycle
where they are on the ladder, has the chance to make an impact. In other companies that’s often not a possibil-
234
it immediately clear that TerraCycle
ity.” He goes on to say that corporate
practices what it preaches. Coming
flexibility and the spirit of recognising
from a diverse background of experi-
those who demonstrate the capability
ence, including roles at GE Digital and
for innovation is something he actively
ALDI, Domokos states that, from a
encourages in his leadership: “The
technological standpoint, his progres-
idea of meritocracy and people being
sion to TerraCycle was in recognition
evaluated based purely on the quality
that it was a company within which he
of their work and not necessarily the
could make a significant difference.
time that they spend on it, I think,
“I felt that, because of its structure,
is getting more attention and is more
every person at TerraCycle, no matter
relevant than ever.” This refocus on leadership became even more important when Domokos took on the CIO role in late 2018 and sought to enhance its scope across TerraCycle’s operations. Recognising
AUGUST 2020
What are the future goals for Terracycle? CLICK TO WATCH
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4:33
235 THAT systems and processes are
on its portfolio, the company has
constantly changing and evolving
gone on to strike more favourable
in the IT world, he set about making
deals than ever before. Part of the
the presence of technology and its
company’s agility stems from shifting
importance felt more deeply within
standards within the IT sector which
the company. “There was a need for
favour moving away from in-house
my direct reports to be included in a
designed applications and refocus-
lot more conversations,” he explains.
ing on using best-in-class tech from
“Making sure that IT-related vendor
third parties. Domokos states that the
management was handled within the
laborious task of developing software
department, for example. TerraCycle
for warehouse management, logistics,
grew from a small company that was
accounting, service management and
super nimble and could pivot quickly;
other everyday functions can now be
that’s something we want to con-
easily handled by outsourcing to cloud
tinue.” Now with a stronger grasp
providers like Amazon Web Services b u s in e s s c hie f. e u
(AWS). Summarising his philosophy,
and removing those items which don’t
he says, “We don’t build our own app
contribute to the cycle of ‘reduce,
server; we purchase one that meets
recycle, reuse’. Circular economics
our needs. If we later want to pivot to
doesn’t just make good ecological sense,
something else, TerraCycle can just
it also makes profound business
cancel the subscription.”
sense too, as Domokos expands upon.
TerraCycle’s objective is a large-
“TerraCycle partners with brands like
scale transition within the philosophy
Unilever, PepsiCo or Coca-Cola and
of global business – training industries
then we launch a campaign to col-
to no longer think about resources
lect a specific waste stream, such as
in terms of ‘product’ and ‘waste’, but
toothpaste tubes, diapers, chips bags
instead finding a use for everything
or drink cans. We guarantee that we 237
E X E C U T I V E P R O FILE :
Béla Domokos Title: Chief Information Officer
Company: TerraCycle
Industry: Environmental Services
Location: Hungary
Béla Domokos is the Chief Information Officer of TerraCycle. His areas of emphasis are transformation management (both on the IT organisation’s and the company level), adopting new technologies and overseeing new product launches. In his first year in the role he has reshaped the IT department to make sure it continues to support the company’s rapid growth. That meant focusing on scalability and structural stability of both systems and IT processes. Before joining TerraCycle, Béla was an IT Manager at ALDI. Prior to that he held roles at GE Capital and GE Digital. b u s in e s s c hie f. e u
TERRACYCLE
238
AUGUST 2020
239
“ There’s so much more excitement ahead” — Béla Domokos, CIO, TerraCycle
b u s in e s s c hie f. e u
TERRACYCLE
2001
Year founded
$44.mn+ Money for charity raised in US dollars
350
Number of employees 240 are going to recycle this collected material, which in turn generates new material.” It is through these measures that the company reduces the need for items such as single-use virgin plastic. Successful campaigns launched by TerraCycle include one for Walmart collecting children’s car
he claims that despite COVID-19-
seats, an effort which simultaneously
related disruptions the company will
recycled disused items and generated
still make a profit at the end of the
more foot traffic for the company,
year. However, he is quick to point
says Domokos.
out that success often comes with its
Perhaps one of the most exciting
own challenges and states that the
aspects of these projects has been
company’s tech infrastructure is in the
the accelerated growth which
process of being upgraded, particu-
TerraCycle has experienced. In fact,
larly its CRM (customer relationship
AUGUST 2020
241
management) software. “New work-
the latest tech trends – trends which
flows need to be set up to make sure
will not only determine the direction
that recently hired staff can pick up
of the business but also sustainability
the pace as fast as possible. With
generally. “Business intelligence (BI)
more organisations wanting to get
is going to be a big one: making sure
involved in our collection programs,
that we understand the data that we
we now have the foundation for further
deal with. I think the whole sustain-
growth.” Moreover, Domokos is keen
ability space is more aware that data
to keep TerraCycle up-to-date with
can be used for all kinds of things: b u s in e s s c hie f. e u
TerraCycle’s approach to software and sustainability CLICK TO WATCH
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4:17
243 how waste is moving around, how it
have been used, customers can then
should get collected and what we can
place them back inside the Tote and
do differently.”
schedule a free pick up at a time con-
This brings him to TerraCycle’s inno-
venient for them. The company then
vative ecommerce platform, Loop. A
empties and cleans the packaging
recognisable online retail experience
ready for reuse. The endeavour shares
with a twist, Loop provides customers
a similar philosophy to TerraCycle’s
with their favourite leading brands in a
other offerings, such as its variably-
sustainably reimagined form exclusively
sized Zero Waste Box, which allows
available through the site. Waste-
customers to fill it up with almost any
free products are then delivered to
kind of waste (domestic or business-
their doorstep in a Loop Tote bag
related) and return to the company
specifically manufactured to replace
for repurposing. “We don’t have many
single-use bubble wrap, cardboard
competitors in this space, so there
boxes and ice packs. Once the products
isn’t an industry standard for how b u s in e s s c hie f. e u
TERRACYCLE
PA RT N E R S
One of TerraCycle’s partners that Domokos singles out for special praise is obo.Agency, a digital transformation company specialising in designing processes, custom technology stacks and smart marketing campaigns designed to optimise a business’ sales and marketing ROI. 244
“obo.Agency is one of our integrated partners; it guides us through the thought process of which solution or software option would best meet our needs. obo helps facilitate the conversation to make sure that our sales process is scalable. It’s not just about the tool, it’s about how our sales process operates: how we track, how we report and how we catalogue. They help us with all of these things and more.”
to do these things; the company is very unique,” Domokos proudly states. “We have so many ideas because we’re also trying to make sustainability easily accessible, painless and fun for everyone,” he adds. He hopes that one day BI capabilities will marry with e-commerce platforms like Loop to help people make sustainable life choices easier. As the business continues to grow and data streams become larger, leveraging advanced automation
AUGUST 2020
245
“ TerraCycle grew from a small company that was super nimble and could pivot quickly; that’s something we want to continue” — Béla Domokos, CIO, TerraCycle
such as artificial intelligence (AI) or machine learning (ML) would become necessary. Although such an application has yet to be realised, the potential is highly exciting for the sector. “If you understand the data that’s moving in your systems and your business, you can serve people better. Hypothetically, if someone decided to go vegan for the purposes of sustainability, we could create a list for them of all the products that they’d need.” b u s in e s s c hie f. e u
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Terracycle’s goal between now and 2021 CLICK TO WATCH
AUGUST 2020
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4:08
“ I think the whole sustainability space is more aware that data can be used for all kinds of things: how waste is moving around, how it should get collected and what we can do differently” — Béla Domokos, CIO, TerraCycle seem indicative that TerraCycle’s tech infrastructure is ready for the ‘new normal’ and Loop expansions delayed for Whilst the COVID-19 pandemic
2020, such as the UK, Canada, Japan
has made 2020 a strange year for
and Germany, are now prepared for end
TerraCycle, Domokos is positive that
of 2020, early 2021. “Loop US is pro-
the success it has achieved despite
jected to be profitable by the end of this
disruption is auspicious for 2021. With
year,” Domokos concludes, “there’s so
the CRM software transition expected
much more excitement ahead: improving
to be completed before the end of the
the IT team, the business structure,
year, cybersecurity augmentations to
adding new roles and staying in-tune
adapt to more data-focused operations
with the evolving needs of the industry.”
(GDPR in Europe and CCPA in the US) and plenty of ambition driving the development of Loop, the company looks set to fly out of the gates come January. Successful remote working practices b u s in e s s c hie f. e u
247
248
Absa Bank: a digital bank for the African continent
JOHN O’HANLON PRODUCED BY JUSTIN BRAND WRITTEN BY
AUGUST 2020
249
b u s in e s s c hie f. e u
A B S A R E G I O N A L O P E R AT I O N S
Vimal Kumar, Chief Executive: Retail & Business Banking, Customer Experience and Digital – Absa Regional Operations, discusses reimagining the future of banking in Africa
N
othing is going to be the same again after COVID-19 releases its grip on the world. While nobody can predict what the ‘new
normal’ will look like, Vimal Kumar, Chief Executive: Retail & Business Banking, Customer Experience and Digital – Absa Regional Operations, is clear about one 250
thing: the response must be digital. “COVID-19 has highlighted the importance of digital solutions,” says Kumar. “The investment we made over the past few years in the digital transformation of our businesses across the continent enabled us to better respond during this time of crisis. As a modern, future-forward African banking group, a key pillar in our strategy is finding scalable solutions and platforms that continue to meet the evolving needs of our customers.” Kumar believes that technology will be the driver of this new type of economy. Regional and local trade mechanisms are likely to replace global supply chains, he suggests, and the most successful financial institutions will be those which can promote digital channels most efficiently, making them cheaper to use, cutting or waiving transaction fees and enabling cashless payments and e-commerce. AUGUST 2020
251
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A B S A R E G I O N A L O P E R AT I O N S
“ Instead of the slow march to digital transformation in the payment space, we are going to see many years of change condensed into a few months” — Vimal Kumar, Chief Executive: Retail & Business Banking, Customer Experience and Digital – Absa Regional Operations
conversational AI. Secondly, instead of the slow march to digital transformation in the payment space, we are going to see many years of change
While being realistic about the difficul-
252
condensed into a few months. Thirdly,
ties ahead, Kumar thinks the benefits
our employees must become mentally
of the Big Data and analytics journey
aligned to operate cohesively in a remote
the bank embarked on following the
and alternative working environment;
commencement of its separation from
most if not all organisations in the future
Barclays PLC in 2017 and it’s rebrand-
will need to find alternative solutions to
ing in 2020, stands it in good stead.
accommodate their workforce other
“As we come out into a new world
than physical environments for the next
post-pandemic, we are going to have to
few years. Fourthly, and central to future
accept fundamental shifts in consumer
success is the need for leaner, scalable,
behaviour. From my retail and busi-
low-cost-to-serve business models.”
ness banking perspective, I can see a
Absa Group’s new brand has been
number of positives. Firstly, massive
inspired by the African continent and its
uptake on alternative channels like
people, and the desire to unite under
e-wallet, e-commerce, contactless and
a single purpose – to bring possibility to life. The group’s shared-value approach reflects its ambition to become a purpose-driven financial services organisation creating substantial social impact through core business functions, while also delivering shareholder value.
AUGUST 2020
Get It Done CLICK TO WATCH
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1:00
253 “One of the key pillars of our new
to collaborate with fintechs and startups.
growth strategy is to build a scalable
“As we progress along our digital journey,
digitally-led business,” says Kumar. “Our
we will continue to focus on change that
aspiration is to become an African bank-
brings value to our customers,” Kumar
ing group with global scalability. Our
explains. “And, because we recognise
motto is to ‘Bring Possibilities to Life’
the cultural change that a digital transfor-
and, as a result, pushing digital bounda-
mation entails, we are already taking the
ries to become customer-obsessed is
initiative to empower, engage and make
at the core of our focus.”
our 9,000+ employees in our African
There is a high degree of awareness around the fast changing landscape
regional operations future-ready. “Very much a part of this process was
at Absa Group and efforts are being
during our rebranding to Absa Bank,
made to accelerate the transformation
we unveiled the artificial intelligence (AI)
journey by opening up the group’s legacy
powered humanoid prototype called
systems through microservices/APIs
Abby – Smart Banking Humanoid in our b u s in e s s c hie f. e u
A B S A R E G I O N A L O P E R AT I O N S
“ I truly believe we can become a customercentric organisation by driving personalised experiences through a combination of data and digital” 254
— Vimal Kumar, Chief Executive: Retail & Business Banking, Customer Experience and Digital – Absa Regional Operations
Mauritius market that allows customers
Kumar is also enthusiastic about the
to self-service their banking transactions
chatbot that now sits on the website
and queries at branches 24/7. It works
and is also available on WhatsApp
on both voice commands and keyboard
Messenger across the African busi-
inputs and uses advanced NLP capabili-
nesses. Powered by deep AI that
ties to understand customer intent and
supports customers through intelligent
respond accordingly. After registration,
conversations, it is capable of doing
it recognises customers through face
most of the things that mobile or internet
recognition and allows them to place
banking can do. This virtual assistant
transactions with a secure PIN set
was developed with the help of US
during the registration process. The
fintech Kasisto and the South African
humanoid also has autonomous navi-
enterprise tech company Blue Turtle.
gation capabilities.”
“We looked at many providers but liked
AUGUST 2020
the Kasisto option because it was a good
been a major disruptor in the payment
fit for what we needed. It is already live in
space between traditional financial
all our markets and will soon have trans-
services providers and disruptors.
actional capabilities – you can tell it to
“They give consumers a fast, secure,
make a payment and the bot will identify/
low-cost method to use, store and send
verify you and complete the transaction.”
money over the internet,” says Kumar.
Another huge step towards becoming
“Our wallet program envisages a banking
a truly digital bank located in the cloud
app that allows customers to open an
is happening right now at Absa with the
account, apply for lending, create sav-
rollout of wallet banking, scheduled to
ings products, pay a bill, and purchase
launch in some markets from August.
airtime amongst other things – all from
Digital wallets or mobile wallets have
their mobile. I am very excited about this 255
E X E C U T I V E P R OF IL E :
Vimal Kumar Title: Chief Executive: Retail & Business Banking, Customer Experience and Digital
Industry: Finance Services
Location: South Africa
Vimal Kumar is the Chief Executive of Retail and Business Banking, Digital and Customer Experience for the Absa Regional Operations, at Absa Group Limited, overseeing the RBB franchises across nine markets: Zambia, Botswana, Ghana, Kenya, Uganda, Mozambique, Tanzania, Mauritius and the Seychelles. He joined the group as the Head of Lending in 2011, based in its offices in Dubai where he provided strategic leadership direction. He has over 25 years of experience in Retail and Business Banking, including credit cards, consumer loans, retail liabilities and wealth management, having worked in Asia, the Middle East and Africa. b u s in e s s c hie f. e u
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“ We will continue to invest in emergent technologies like AI, ML, and IoT wherever they have the potential to improve life for people as well as back office efficiency — Vimal Kumar, Chief Executive: Retail & Business Banking, Customer Experience and Digital – Absa Regional Operations
the future, to be expanded and made more multifunctional. Since Absa became independent, Kumar has become increasingly
because it’s customer-centric, meet-
convinced that technology is more
ing a need that is felt in all our markets.
effectively and quickly implemented
It helps us deliver banking capability
by involving partners than by building
at a very low cost to segments that
it in-house. “We have an accelerator
are difficult to serve through the
programme where we incubate up to
branch network.”
15 fintechs at any one point. We started
Importantly, it extends financial
working with some of those companies
access, as Kumar explains. “We want
because they were building technologies
to make it easy for new customers to join
specifically to solve customer problems
the financial ecosystem. Wallet banking
in Africa. Our biggest success so far
brings together a couple of cool things.
has been Jumo, which has built mass
One is that it helps us penetrate the
data and analytics, and credit assess-
mobile money ecosystem effectively;
ment capability, working in Africa with
it creates a partnership opportunity with
mobile lending operators over the
other fintechs and with the mobile net-
last eight years. It is very smart, it can
work operators – the kind of partnership
onboard and assess customers, and
that will be so important going forward.
lend to them based on a multivariate
It also helps us onboard customers in a
scorecard that ranks risk.”
non-physical way so they can either use the self-KYC (know your customer) facility or onboard via an agent. They need never come into a branch.” Wallet banking, Kumar says, is an investment in b u s in e s s c hie f. e u
257
A B S A R E G I O N A L O P E R AT I O N S
258 This technology chimes with Kumar’s
that directly links agri-trade activity with
vision to reach new segments of soci-
financial services. The farmer can offer
ety – people who might never come
his or her supply and the buyer can pur-
into a bank branch. Absa is now work-
chase electronically at an agreed price.
ing with Jumo in Zambia, Ghana, and
Since so much of the African economy
very soon Tanzania and Uganda too,
comprises small-scale agribusinesses,
within the mobile money ecosystems
this is a sector Kumar is particularly
there, allowing customers to save and
keen to excel in, and this marketplace
borrow money.
capability is proving very successful.
The innovation accelerator,
Africa’s diaspora is marked by a
WorkinProgress, was founded in 2015
great need for effective and fast remit-
and is based at Cape Town. It provides
tance structures, but aside from large
facilities and support for startups.
money transfer operators, there are
Another highly relevant partner to have
few options, Kumar continued. “We are
come from it is Avenews-GT, an Israeli
evaluating a fintech partnership and
fintech that has digital infrastructure
in parallel have also built an in-house
AUGUST 2020
on their mobile and charge it back to us.”
“ I am very excited about wallet banking because it’s customer-centric, meeting a need that is felt in all our markets” — Vimal Kumar, Chief Executive: Retail & Business Banking, Customer Experience and Digital – Absa Regional Operations
This, he says, will push mobile access, data being an expensive commodity for Africans. The investment Absa has put into data is now paying off. The bank won the 2019 award for Best Technology Initiative at the Financial Innovation Awards in London for its data analytics platform, which tackles the issue of data availability in banking, especially in emerging markets. “Customer360 (C360) presents data with a lot of visualisation and interactivity. There’s
mobile based remittance solution
gamification and machine learning
called Novo Fx. Again, this is something
capability – again, it puts customers
our customers are really in need of.”
at the heart of our strategy. I truly
Partnerships like these in a targeted
believe we can become a customer-
way reach out to a huge untapped
centric organisation by driving
customer base. In 2016, Absa was
personalised experiences through a
the first bank to offer South African
combination of data and digital. And
customers reverse billing over all big
the employees are as much a part
four networks, allowing the MNOs to
of the journey as the customers are.
charge data costs back to Absa. “I
Digital transformation is only possible
want our customers to never pay for
if we can get our colleagues on the
data either while using the Absa app or
same page,” he concludes.
website. Again, we are in very advances stage of discussions with an exciting technology company to aggregate the data customers use in accessing Absa b u s in e s s c hie f. e u
259
260
DHL EXPRESS: DRIVING FINTECH INNOVATION IN AFRICA AUGUST 2020
261
WRITTEN BY
GEORGIA WILSON PRODUCED BY
JUSTIN BRAND
b u s in e s s c hie f. e u
DHL EXPRESS SOUTH AFRICA
BUSINESS CHIEF EMEA/FINTECH MAGAZINE LOOKS AT THE FINTECH LANDSCAPE IN SOUTH AFRICA AND HOW DHL IS CONTRIBUTING TO THE INDUSTRY’S INNOVATION ACROSS THE AFRICAN CONTINENT THE HISTORY OF DHL Founded in 1969, by Adrian Dalsey, Larry Hillblom and Robert Lynn, DHL began operating one of the first international door-to-door express delivery services, not long after Neil Armstrong became 262
the first man to step on the moon. The three men’s business idea, ‘altered the global economy’, forming ‘the cornerstone for global operating enterprises’. The founding of DHL represented the creation of the international air express service industry, which rapidly transported documents and cargo papers by plane. In 2002, DHL became a wholly owned subsidiary of Deutsche Post.
STRATEGY 2025: DELIVERING EXCELLENCE IN A DIGITAL WORLD For many years, DHL has been successful in deploying and achieving its business strategies. Following the end of its ‘Strategy 2020’, the company has established its latest iteration – Strategy 2025: deliver excellence in a digital world.
AUGUST 2020
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b u s in e s s c hie f. e u
DHL EXPRESS SOUTH AFRICA
“ WE NEED NOT REINVENT OURSELVES, WE WILL DIGITALISE OURSELVE” — Frank Appel, CEO, Deutsche Post DHL Group
to embrace the fast-paced world of changing technologies. While DHL continues to innovate within the logistics, supply chain and manufacturing sectors, one area that DHL is delving into is the fintech industry. With many large organisations in South Africa focused on digitalisation as a strategic goal to ensure sustainable and efficient businesses for the future, DHL is committed to continuous improvements. To navigate the fintech industry in South Africa, organ-
264
“Deutsche Post DHL Group has
isations must therefore understand
never been in better shape. We are
the large focus on digitalisation and
convinced that future growth will come
automation to drive efficiency, accu-
from a consistent focus on our profit-
racy, quality and compliance within
able core logistics businesses – and
the industry.
digitalisation will become the greatest lever,” said Frank Appel, CEO of Deutsche Post DHL Group, “we need not reinvent ourselves. We will digitalise ourselves.” Accompanying this innovative mindset, are DHL’s innovation centers in Germany, Singapore and America. At these centres, the company is continuously focused on exploring new concepts, technologies and methodologies in order to allow countries AUGUST 2020
DHL e-commerce: Mall for Africa CLICK TO WATCH
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THE BENEFITS OF FINTECH FOR THE SUPPLY CHAIN INDUSTRY
suppliers may provide discounts such
Innovations in financial services
as cost of capital which can help
technology can bring several benefits
to fund growth and expansion into
to the supply chain, including:
new markets.
1. Extending accounts payable
2. Inventory orders and resupply
Typically, fintechs have relationships
In exchange for using fintechs,
Using fintechs can also provide an
with multiple banks and financial insti-
easier way of reordering inventory
tutions. As a result they can act like a
quicker, reducing manual and sporadic
broker for finance for supply chains,
reorders. Rather than reaching out to
financing the transaction between the
individual suppliers, fintech solutions
buyer and the supplier, allowing more
can allow supply chains to schedule
time to make a payment.
and streamline operations. b u s in e s s c hie f. e u
DHL EXPRESS SOUTH AFRICA
1969
Year founded
HQ
Bonn Germany
760+ 266
Number of employees
AUGUST 2020
267
“ CONSUMERS WILL FINALLY HAVE AN ALTERNATIVE THAT GIVES THEM PEACE OF MIND BY ENSURING THAT THEY ONLY PAY FOR GOODS AFTER THEY HAVE RECEIVED THEM” — Hosam Arab, Co-founder and CEO, Tabby
b u s in e s s c hie f. e u
3. Faster payments, consistency
DHL’S FINTECH INNOVATION
and ease for the supplier
Breaking into the fintech space, DHL – in the last few months – has been
Adopting fintech solutions as a sup-
partnering with leading fintech com-
plier allows for quicker and cheaper
panies to provide innovative payment
methods of acquiring payments, as
solutions to its customers.
well as faster reorders allowing for improved scheduling and being more
DHL AND PAYFORT
accessible and visible to buyers.
Towards the end of 2019, DHL
Other benefits for the supply chain
announced a new partnership
industry include finance opportuni-
between DHL Express (North Africa)
ties for equipment and inventory.
and Amazon’s PAYFORT, to provide
Within logistics and supply chain
its customers in the region the abil-
there is a consistent need for inven-
ity to complete shipment solutions
tory and equipment, however the
online and in their local currencies,
procurement process comes with
while protecting them against fraud
challenges. With fintech evolving at a
and other security concerns.
fast pace the procurement process is expected to become easier and more productive. While buyers and suppliers can benefit from fast and easier payment methods, so can drivers. Fintech solutions can provide the capability for digital check deposits and digital payment transfers to pay drivers. Finally, supply chains and logistics can benefit from the digitalisation of the manual billing process and invoicing services that fintechs can provide. b u s in e s s c hie f. e u
269
DHL EXPRESS SOUTH AFRICA
270
AUGUST 2020
“ THE ERA OF DIGITALISATION AND ECOMMERCE IS ON THE RISE AND IS TRANSFORMING TODAY’S WORLD INTO A CASHLESS SOCIETY” — Ali Thabet, Regional Director-eCommerce MENA, DHL Express
The partnership aligned with PAYFORT’s mission to build robust payment experiences in the MENA region, as well as simplify the process for thousands of customers that trust DHL to deliver their time-sensitive shipments. It covered eight countries including Egypt, Jordan, Lebanon, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE “The era of digitalisation and ecommerce is on the rise and is transforming today’s world into a cashless society. At DHL Express MENA, we provide different online solutions that facilitate shipping and logistics for both businesses and individuals,” b u s in e s s c hie f. e u
271
DHL EXPRESS SOUTH AFRICA
“ CONSUMERS WILL FINALLY HAVE AN ALTERNATIVE THAT GIVES THEM PEACE OF MIND BY ENSURING THAT THEY ONLY PAY FOR GOODS AFTER THEY HAVE RECEIVED THEM” 272
— Hosam Arab, Co-founder and CEO, Tabby
commented Ali Thabet, Regional
of its most recent partnerships in the
Director-eCommerce MENA at DHL
fintech industry, with Dubai-based
Express. “Cashless payments provide
fintech Tabby to provide customers
more security and faster transac-
with an alternative to cash on delivery
tion time for businesses and offer
(COD).
consumers more convenience and
Ecommerce businesses which use
flexibility when sending and or receiv-
DHL’s services can provide customers
ing shipments.”
with Tabby’s ‘Pay Later’ option, allowing customers to checkout without
DHL AND TABBY
providing a credit card when making a
In June 2020, DHL announced one
purchase. “Consumers will finally have
AUGUST 2020
273
an alternative that gives them peace of
proprietary decision engine will help
mind by ensuring that they only pay for
our customers capture business
goods after they have received them,”
opportunities that they may have
commented Hosam Arab, company’s
otherwise lost,” added Geoff Walsh,
co-founder and CEO at Tabby.
UAE Country Manager at DHL Express,
“Our partnership with Tabby demon-
commenting on the occasion.
strates DHL’s continued commitment to delivering value to our e-commerce customers, as they are currently operating in a challenging and volatile business environment. Tabby’s b u s in e s s c hie f. e u
274
ARAB NATIONAL BANK: WHERE EXPERTISE MEETS REPUTATION WRITTEN BY
WILL GIRLING PRODUCED BY
JORDAN HUBBARD
AUGUST 2020
275
b u s in e s s c hie f. e u
A R A B N AT I O N A L B A N K
One of the largest banks in the EMEA region, Arab National Bank has created a legacy based on expertise, innovative services and customer trust
F
ounded in 1979, Arab National Bank (ANB) has risen in stature to become one of the top banks in the Middle East region.
Having taken over operations of the pre-existing ‘Arab Bank in the Kingdom of Saudi Arabia’, ANB relocated its headquarters to the country’s capi276
tal of Riyadh, with regional offices in Jeddah and Khobar and an established international presence in London, UK. Serving over two million customers via a workforce of 3,770 people in 156 branches, the bank continues to pursue a customer-centric goal which has become enshrined as its corporate motto and mantra: to be “a friend indeed” to its clients. Not content with merely offering a limited suite of products, ANB prides itself on a comprehensive portfolio of personal, commercial and investment services. Catering to its customers’ daily needs, the bank operates 1,240 ATMs, 18,000 POS terminals and a 24/7 customer service centre. In addition, fully embracing the possibilities of e-banking and online digital facilities, ANB’s customers can manage their money on a laptop, smartphone or via a ‘digital branch’. The bank’s AUGUST 2020
277
b u s in e s s c hie f. e u
A R A B N AT I O N A L B A N K
“ The bank continues to pursue a customercentric goal which has become enshrined as its corporate motto and mantra: to be “a friend indeed” to its clients”
accounts can also be connected with Apple Pay and Mada Pay for fast contactless payments, a practical necessity which has taken on particular importance since the COVID-19 pandemic made the handling of physical cash a potential health hazard. For payment transactions outside of Saudi Arabia, ANB offers its TeleMoney Service which has been facilitating long-distance payments since 1992. Customers can transfer money to 95 global locations, including India,
278
Pakistan, Indonesia, Egypt and more.
AUGUST 2020
Saudi National Day at Arab National Bank CLICK TO WATCH
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279 No less flexible or inclusive with
developing products that are compat-
corporate clients as it is with individu-
ible with the Islamic Shariah Principles
als, ANB is experienced at providing
of banking. Currently offering two such
financial products and services to
services - morabaha and tawarruq - all
large and medium-sized enterprises,
of its new output will be carefully moni-
particularly in the manufacturing, trad-
tored and reviewed by a dedicated
ing and IT sectors. Services include
Committee for compliance.
but aren’t limited to: short, medium and
Receiving widespread industry
long-term loans, bill payments, bonds
praise for the quality of its overall
and letters of credit. Although a large-
performance, ANB continues to excel
scale, international operation, ANB still
through a focused drive that empha-
manages to offer clients a personal
sises strong relationships with
service by assigning each company an
investors and a progressive stance
officer to act as a consistent point of
on implementing the latest financial
contact. The bank is in the process of
services technology. Upon receiving b u s in e s s c hie f. e u
YOUR POINT OF SALE PARTNER LEARN MORE
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+ 966 - 11 224 7400
281
“ No less flexible or inclusive with corporate clients as it is with individuals, ANB is experienced at providing financial products and services to large and medium-sized enterprises”
Argaam’s ‘Top Performing Fund’ award for its ‘Al-Arabi Saudi Equity Fund’, Bassam AlMubarak, CEO of ANB Invest (the Group’s investment arm) commented, “We are proud to bring this coveted award home from among all Saudi Equity Funds. The award speaks to the knowledge, expertise and outstanding performance of the Company’s team.” Additionally, upon ANB’s winning the ‘Best Retail Bank in Saudi Arabia’ category at the 2019 World Finance awards, Dr Robert Eid, Managing b u s in e s s c hie f. e u
A R A B N AT I O N A L B A N K
1979
Year founded
$673mn+ Revenue in US dollars
3,770 282
Number of employees
AUGUST 2020
283
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“ IANB makes it clear that the best banks do not simply focus on growing their own brand, but rather contribute to the economic and social development of the country they operate in”
Director and CEO of Arab National Bank, was said to have “expressed his pride in this achievement, which is a result of the bank’s relentless efforts of investing in cutting edge technology, expanding the digital branch network and developing ADCs to keep pace with the digital transformation in line with the Kingdom’s Vision 2030.” ANB makes it clear that the best banks do not simply focus on growing their own brand, but rather contribute to the economic and social development of the country they operate in. Established as one of Saudi Arabia’s
General management of Arab National Bank CLICK TO WATCH
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b u s in e s s c hie f. e u
285
A R A B N AT I O N A L B A N K
286
“ ANB is an organisation based on decades of expertise, a fundamental grasp on the direction that banking is travelling towards and most importantly trust�
premier project financiers, ANB possesses an innate understanding of the local market, its regulations and available opportunities. As such, it is able to offer end-to-end support on every aspect of project finance, from arranging loans to debt syndication and agency services. Other services include credit products, bridge loans, hedging facilities and more, all with the capacity to be fully Shariahcompliant if needed.
AUGUST 2020
287
ANB is an organisation based on
to support its aspirations. As the
decades of expertise, a fundamental
financial services market continues
grasp on the direction that banking
to change in new and unpredict-
is travelling towards and most impor-
able ways, ANB will remain at the
tantly trust. “Our promise is to earn
forefront by applying its persistently
your friendship by being transparent,
high-quality standards to the latest
committed and making sure you are
technology-driven trends, ensuring
always satisfied,� it says on the web-
that its customers receive some of the
site. With a BBB+ S&P rating and net
best banking experiences available,
profit of USD$947mn for 2019 (up
not just in Saudi Arabia but the world.
7.3% on the previous year’s figure), the bank has strong, healthy credentials b u s in e s s c hie f. e u
288
AUGUST 2020
SONAE FASHION’S ROBUST AND FLEXIBLE DIGITAL
289
ARCHITECTURE WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
BEN MALTBY
b u s in e s s c hie f. e u
S O N A E FA S H I O N
Nuno Miller, Chief Digital and Information Officer at Sonae Fashion, discusses the firm’s IT architecture and its huge benefits to the retailer’s flexibility and agility
I
f any one industry can be identified as the poster child of digital transformation and the factors that drive it, retail is a
leading contender. The dramatic shifts in consumer buying habits and expectations trace to 290
Amazon, whose availability, pricing strategies, and logistical capabilities have defined how successful retailers operate in the digital age. While Amazon has primarily been focused on ecommerce, its counterpart in Asia, Alibaba, has popularised the concept of New Retail: the blending of brick-andmortar offerings with robust online capabilities. Bridging the gap between physical and digital stores has become all but essential for traditional retailers as consumers flock to the endless aisles and easy payments of websites whilst retaining considerable interest in visiting traditional shops. Portuguese retail giant Sonae Fashion is no exception, and its clothing arm, Sonae Fashion, emblematises both the need for and successful execution of a digital transformation that continually morphs AUGUST 2020
291
b u s in e s s c hie f. e u
S O N A E FA S H I O N
“ My first move was to completely change the digital platform to support the brands’ and markets’ business needs”
challenges into triumphs. With 400 of its own and franchised stores across Europe, South America and the Caribbean, the Middle East, India, Asia and Southeast Asia, Sonae Fashion has deployed over 5,000 points of sale as well as more than 3,000 members of staff worldwide. Its fashion
Nuno Miller, Chief Digital and Information Officer, Sonae Fashion
brand portfolio, currently consisting of Mo, Salsa, Zippy, Deeply and Losan, as well as its global operations, has necessitated the development of digital infrastructure and capabilities that
292
can tackle the challenges of diverse
AUGUST 2020
Jeans for every(body) | Find yours CLICK TO WATCH
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293 and potentially siloed operations.
and experience than we used to have.
Nuno Miller, Chief Digital and
One of the challenges from buying dif-
Information Officer (CDIO) at Sonae
ferent brands over the past few years
Fashion has had a considerable hand
has been the need to consolidate
in the company’s digital revolution, join-
teams, platforms, people, to make
ing in 2015 as Head of Digital Channels
sense as a whole rather than a series
and rising to the CDIO position in 2018.
of separate parts that don’t match
“My role is to envision, deliver and sup-
together as a whole.
port a unified digital ecosystem that is
“Sonae Fashion has traditionally
able to fulfill business needs as quickly
been a brick-and-mortar retailer,
and efficiently as possible,” Miller says.
starting with groceries and food retail
“I work together with all the business
and later expanding into electronics
teams, sales, operations, warehouse
and fashion. Specifically with Sonae
management teams, etcetera, so that
Fashion, we recognise a strong change
we’re able to deliver a better platform
in the market. Online purchases b u s in e s s c hie f. e u
Transforming retail with passion In retail there are no small mistakes Learn more
The people at Retail Consult know Sonae very well, have huge experience across different countries with many retailers, and add value to everything they touch. They have been a very reliable partner, with great organisation, retail awareness, and agility Nuno Miller, Chief Digital & Information Officer, Sonae Fashion
About us: Retail Consult is a highly specialized group that has a big focus on technology solutions for retail. We offer our clients global perspective and experience with operations in Europe, North, South, and Central America.
“ We wanted to mix our offering with omnichannel capabilities, move faster across processes and teams, and to take advantage of our fashion ecosystem, amplify value across teams, offer relevant and seamless experiences to customers and users”
have become more significant and numerous over time, and the digital marketplace is growing stronger and stronger. We wanted to mix our offering with omnichannel capabilities, we wanted to move faster across processes and teams, and we want now to take advantage of our fashion ecosystem, amplify value across teams, offer relevant and seamless experiences to customers and users, and move
Nuno Miller, Chief Digital and Information Officer, Sonae Fashion
towards agility and nimbleness across operations.” 295
ONE BIG FAMILY - 49 children from all over the word get together l ZIPPY CLICK TO WATCH
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b u s in e s s c hie f. e u
S O N A E FA S H I O N
296
This necessity is made clear by the
We changed the Mo site within five
changes in Sonae Fashion’s portfolio
months, along with the Zippy sites for
over the years, with brands having
Portugal and Spain within five months,
been acquired, reviewed, closed, and
and we changed the digital platform to
sold in response to performance
support the sales teams in-store.”
and value against its other brands.
With external support, Sonae
Before the move to a unified system
Fashion then assessed its global
was enacted, each brand had its
architectures to assess the capabili-
own digital architecture, or even
ties required and where developments
shared architecture with Sonae
ought to be made. Miller notes that this
Fashion’s grocery functions. “My
strategy was predicated on a fivefold
first move was to completely change
plan that isolated and unified the key
the digital platform to support the
requirements of its brands and their
brands’ and markets’ business needs.
digital channels. “Systems of records
AUGUST 2020
for ledging and master data; systems of enablement to make service delivery easier for employees in-store; systems of engagement that build communication with customers, users and suppliers; systems of orchestration to unify each of the systems; and systems of insight that can curate and analyse our data and feed it back to the business to improve decision making,� Miller explains. “The key components of the architecture are the ERP, digital sales platform, the ePOS, the omnichannel autofulfiment system, the
E X E C U T I V E P R OF IL E :
Nuno Miller
Title: Chief Digital and Information Officer Company: Sonae Fashion Industry: Retail During 20 years, Nuno put together a pretty unique set of experiences, from IT/IS and Management consulting to top-level management, from brick-andmortar retail to electronic commerce,
business intelligence (BI) platform, and
from start-ups to large companies, from
the artificial intelligence (AI) platform,
local approaches to global initiatives,
along with secondary systems such
from supply procurement to business
as product lifecycle management, the
and marketing strategies.
loyalty management system, and the warehouse management system.� After consolidating these factors,
Very adaptable to new challenges and different companies, from fast-growing start-ups to large corporations. He has
Sonae Fashion developed a roadmap
been helping companies to
for its transformation beginning with a
grow and get stronger,
starting point for change: overhauling
in the last 12 years
its ERP systems, and moving from six
performing top-
separate ERP platforms to one. Each factor mentioned here, Miller says, ties
level management positions.
into ERP, and building a new, bespoke ERP platform presented both an enormous challenge and opportunity b u s in e s s c hie f. e u
297
Think Store Efficiency, Think Technology, Think Tlantic +15 years working side by side with global retailers, makes us specialists in shop floor processes, workforce and customer service, driving operational efficiency, increasing sales and optimizing costs. Tlantic partners with Sonae Fashion for the operational excellence of their stores. Learn more
MO | Celebramos a família CLICK TO WATCH
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299 for streamlining and unifying Sonae
spanning beyond Sonae Fashion’s own
Fashion’s digital capabilities.
ventures to petrol stations, supermar-
Not only that, but Sonae Fashion’s
kets and more.
long history of data-driven operations
The loyalty programme alone offers a
has been supercharged by the growth
rich data source that enables a view of
of more developed BI and AI systems
customer buying habits, trends, spend-
that offer deeper levels of insight at
ing spikes, and interests.
speed; a robust ERP system with
This, along with other relevant
these functions integrated stands to
operational data, requires a sig-
maximise the value of Sonae Fashion’s
nificant amount of computational
broad and varied and data sets. One
power and space. Cloud technology
example is the firm’s successful cus-
provides the solution, with Microsoft
tomer loyalty ecosystem, fuelled by
Azure being selected for its agil-
the Continente card shared across
ity, stability, performance, power,
multiple brands and business functions
enterprise-level capabilities, and its b u s in e s s c hie f. e u
S O N A E FA S H I O N
alignment with back-office solutions. The cloud hosts the streamlined SAP ERP system, along with a singleinstance BI platform that can unify data from data warehouses, data lakes, customer feedback, loyalty programme data and myriad more sources. The flexibility and agility of
“ It’s very important for a retailer, in all different areas, to take advantage of all these massive sets of data points”
the cloud-based architecture ties the ecosystem together, enabling shifts in operational capabilities and behaviours that can be made incrementally and in response to the
Nuno Miller, Chief Digital and Information Officer, Sonae Fashion
PART N ERS
Retail Consult
Tlantic
“We are working with Retail Consult in very specific projects and areas because of the huge expertise it offers regarding retail and retail systems. We really recognise its advantages in that space. The people at Retail Consult know Sonae Fashion very well, have huge experience across different countries with many retailers, and add value to everything they touch. We work with them on design for solutions, data migration, integration, logistics, and ERP to PLM to warehouse management system workf lows. Retail Consult has been a very reliable partner, with great organisation, retail awareness, and agility.”
“Tlantic is one of our partners concerning store systems. We have been working with the people there for many years on ePOS, logistics, systems for receiving products, store transfers, time management, teams organisation, timescales and optimisation. Tlantic is one of our main ePOS and ePOS architecture providers, and offers different capabilities that power the omnichannel experience through service-oriented architecture for payments, checkout, catalogues, product lists, and so on.” -N uno Miller, Chief Digital and Information Officer, Sonae Fashion
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AUGUST 2020
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insights generated by the AI-enabled BI platform. Being able to manage that data, with the aid of automated and AI-powered processing via the BI platform, enables Sonae Fashion’s stores to be as competitive in the marketplace as possible. “It’s very important for a retailer, in all different areas, to take advantage of all these massive sets of data points and address, with intelligence: pricing and promotions, range and assortment, and location 304
and replenishment,” says Miller. “We have tens of thousands of products per season, with millions of different
“ During the COVID-19 crisis, we have been receiving a number of orders 10 to 11 times over historic values”
sales tickets, and it’s impossible for a person to assess all that data and curate insights effectively.” By unifying systems in this way, Miller and his team have developed a robust digital architecture that reaps huge value from the vast presence and unique factors of its portfolio, brick-
Nuno Miller, Chief Digital and Information Officer, Sonae Fashion
and-mortar stores, and its ecommerce capabilities. The COVID-19 pandemic has been a remarkable stress test for these systems, and Miller says the previous architecture and B2C websites
AUGUST 2020
1959
Year founded
€6,435mn Revenue in Euros
3,000 Number of employees
would have been unable to cope with
The result is a business whose flex-
its impacts on online spending habits.
ibility, agility, capability, and resilience
“During the COVID-19 crisis, we have
are ingrained in and supported by the
been receiving a number of orders
new digital architecture developed by
10 to 11 times over historic values,” he
Miller and his team. While the world is
says. “The new sites haven’t had a
rocked by a pandemic of unprecedented
problem with supporting these volumes
scale, it is a credit to digital transforma-
of customer visits. If we didn’t have this
tions such as these that businesses
platform and these new sites and capa-
have been able to both handle and thrive
bility, we would not have been unable to
under such enormous pressures.
handle the challenges of the pandemic,” Miller says, and this has been a key success of his work as CDIO. b u s in e s s c hie f. e u
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HENKEL ADHESIVE TECHNOLOGIES: DATA-DRIVEN DIGITAL TRANSFORMATION 306
WRITTEN BY
MATT HIGH PRODUCED BY
LEWIS VAUGHAN
AUGUST 2020
307
b u s in e s s c hie f. e u
HENKEL ADHESIVES
Head of Digital Operations, Dr Nick Miesen discusses digital transformation of operations and the power of data
A
passion for digital technology, and it’s power to drive business optimisation and operation excellence, underpins much
of Dr Nick Miesen’s career. Miesen, who has more than 12 years’ experience in areas as diverse as 308
aerospace, chemicals, supply chain and manufacturing, and fast-moving consumer goods, brought that experience to Henkel Adhesive Technologies at the start of this year. Since, he has been responsible for driving digital change in the organisation’s operations, supporting Smartfactory capabilities roll-out across the organisation and leading the company’s Global Digital Quality programme. As one would expect, Miesen is well versed in the latest digital technologies. He is also a vocal proponent of the importance of perfecting the operational basics that underpin those technologies. “Looking retrospectively at the concept of digital transformation, particularly four or five years ago when I was working at AkzoNobel, there was a fair amount of hype around digital. That’s over,” he says. “Companies are realising there’s a lot of tough AUGUST 2020
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HENKEL ADHESIVES
work in adopting digital strategies and that there’s no silver bullet. If your
“ The foundation of any digital transformation is the people”
processes aren’t standardised and you don’t have the basics in place then worrying about the ‘sexy’ tech like AI or VR just won’t work - you’ll stay locked into the experimental phase.” Miesen elaborates on the ‘digital
— Dr Nick Miesen, Head of Digital Operations, Henkel Adhesive Technologies
backbone’. This refers to the infrastructure, strategies and processes in place that enable technology adoption to be maximised and bring operational excellence. “It’s really
310
important to not be blinded by new
AUGUST 2020
Henkel Adhesives: Don’t Let A Little Fastener Become a Big Problem CLICK TO WATCH
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0:51
311 innovations,” he states. “From my perspective, the foundation of any digital transformation is the people - I’d rather have 1,000 highly capable individuals trained in the basics than a couple of master coders. That strong foundation across the organisation lets you build out the entire decision making process, to properly analyse and problem solve and achieve the low hanging fruit first. There’s a bigger picture, of course, and a full strategy but only focusing on that just isn’t a sustainable approach to building operational excellence.” b u s in e s s c hie f. e u
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312
In January this year Miesen joined
of that digital backbone I mentioned.
Henkel Adhesive Technologies as
We have a major programme finalising
Head of Digital Operations and was
to consolidate all SAP systems and let
tasked to build on the digital work
us house all our data in a single system.
before within operations. Michael
That’s a great starting point for digital,
Merget, currently Head of Operations
and not something I’ve seen in other
and Supply Chain, started a few years
companies I’ve worked with.
ago with the digital quality program.
“But, objectively, I saw very early on
The business, which is a leading solu-
that there was the potential to do much
tions provider for adhesives, sealants
more with the data,” he continues.
and functional coatings globally, was
“For example, there was a lot of data
already in a strong position digitally, he
around introducing new platforms and
says. “I found the business to be really
systems, and some utilisation of that
advanced, and quite visionary in terms
data. That’s really where I saw my role
AUGUST 2020
E X E C U T I V E P R OF IL E :
313
Nick Miesen Title: Head of Digital Operations Company: Henkel Industry: Adhesive Technologies Location: Amsterdam Red thread in Miesen’s career is data for business optimisation, from Operational Excellence (L6S) to Digital Transformation. He has over 12 years’ broad industry experience in aerospace, chemical and FMCG. Miesen worked in various roles, mainly in innovation or supply chain, at the Dutch National Aerospace Laboratory (NLR), Deloitte, AkzoNobel and Heineken. In 2016 he cofounded an Advanced Analytics startup, Jugaad. In the beginning of 2020 he started as Head of Digital Operation at Henkel Adhesives Technologies. He holds a PhD in Aerospace Engineering, a MSc in Physics & Astronomy and is certified (Master) Black Belt. w w w.busi b u s inne e sssch s c hie ief. f. eeu u
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HENKEL ADHESIVES
coming in - to take advantage of and
“ The high-level strategy is to build digital operations”
build on the great work that has already been done, to bring in those low hanging fruits and build out the basics in the best way.” Since joining Henkel, Miesen has led the company’s Global Digital Quality programme, which aims to
— Dr Nick Miesen, Head of Digital Operations, Henkel Adhesive Technologies
predict and improve product quality; he has strategised, planned and deployed digital programmes and sought out opportunities to introduce new technologies to the business.
316
“The high-level strategy is to build digital operations,” he says. “But, it’s important to be very clear on what that actually means. “First and foremost, it’s about the seamless flow of data both ways that’s the backbone,” he continues. “But within that are several smaller objectives. You need connectivity, for example. So, data needs to be transferred and centralised and then you need visualisation of all that data. That plays into the global digital quality function I am responsible for, as if you can have a global solution whereby we can track and visualise any variations in quality of material input and finished AUGUST 2020
317
goods. Having the whole organisation
using the data collected to model
globally able to visualise all that data
processes, from the simple to the
gives the ability to make better deci-
very complex. “You start with simple
sions and work towards operational
linear regressions, then move along
excellence, and create customer value.”
the level of complexity so that you
With this step in place, Miesen
can gain greater understanding by
explains that the focus shifts first
using statistical analysis,” he says.
towards being more predictive and
“The next step is to add intelligence
then bringing greater intelligence
to those statistics, which enables you
and algorithms into the process. The
to analyse, prove, predict and under-
former, he explains, revolves around
stand anything. b u s in e s s c hie f. e u
HENKEL ADHESIVES
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319 “Those, for me, are the key steps in the sequence of building that digital
“ We move from simple data to advanced data analytics, and as we do it the supply chain becomes increasingly digitised for us, our suppliers and our customers”
supply chain. We move from simple data to advanced data analytics, and as we do it the supply chain becomes increasingly digitised for us, our suppliers and our customers. It’s quite conceptual but it’s a very clear and defined process.” While for Miesen the process is clear there are, he concedes, still challenges
— Dr Nick Miesen, Head of Digital Operations, Henkel Adhesive Technologies
to overcome in digitising a supply chain operation. “We still have data in different systems and formats. The biggest hurdle is getting that data into the b u s in e s s c hie f. e u
HENKEL ADHESIVES
right place and in the right order. To a degree, the analytics and visualising of the data is the easy part. The big challenge is found in knowing which sets of data to address first, in trying to align the different ambitions and functions of the various stakeholders and standardising the operations process. If we do that, it’s really the biggest step to take forward.” Henkel’s size, too, poses challenges to operational excellence. Miesen and the team are responsible 320
for optimising operations across 140 sites. “I don’t need to explain that, to implement a digital journey across so many facilities means you have to work smart. This is why we’re adopting a Smartfactory approach, which includes a manufacturing execution system (MES), a robust ERP layer and a host of other smart tools,” he explains. “It’s a really powerful technology to have available, particularly as we have a long-term strategy to move towards different levels of automation at our sites.” Of course, since Miesen joined the company in January, the world has seen significant disruption as a result AUGUST 2020
1876
Year founded
€20bn+ Revenue in euros
52,000 Number of employees
321
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HENKEL ADHESIVES
of the global COVID-19 pandemic. For businesses in every sector, the impact has been enormous, forcing a shift in both how existing operations are carried out and, in a broader context, in the implementation of new technology. Naturally, Henkel prioritised the safety and wellbeing of its employees while ensuring it could continue to operate and supply its customers. “The biggest change, like everyone else, was in facilitating a remote working environment,” says Miesen. 322 “I think, collectively, we are all very proud of Henkel’s response to the crisis, particularly across such a broad and diverse business. It’s definitely brought several new technologies
“ Data is power and to have that database in place will enable the next step”
into the picture too, as well as refocused everyone’s views on using technology. For example, things like augmented reality innovations have come into focus with us deciding to use Microsoft’s HoloLens system, which will facilitate remote work-
— Dr Nick Miesen, Head of Digital Operations, Henkel Adhesive Technologies
AUGUST 2020
shops, remote audits and more. More broadly, I think this will change some of the more conservative thinking around technology and business.”
323
Disruption aside, Miesen is resolute
database in place will enable the next
in his commitment to Henkel’s digital
step - to the lab, to the testing facil-
journey. His immediate focus remains
ity and intelligent modelling. That’s
on building an innovative digital sup-
where you’ll see the real benefit of
ply chain while changing the way that
this journey, it will absolutely keep us
Henkel does business to be more
ahead of the curve.”
agile and lean. “If we build our processes to be better and use our data in the most effective way, this will feed into our product development processes and our understanding of exactly what the customer wants. Data is power and to have that b u s in e s s c hie f. e u
324
AUGUST 2020
MED-EL: digital transformation for quality of life WRITTEN BY
WILLIAM SMITH PRODUCED BY
BEN MALTBY
b u s in e s s c hie f. e u
325
MED-EL
Martin Hairer, Chief Digital Officer of medical technology (medtech) firm MED-EL, on the company’s use of technology to improve customer outcomes
M
edtech company MED-EL is a leader in the field of implantable hearing systems, as the company’s Chief Digital Officer Martin
Hairer explains: “Our core competency is to develop hearing implant solutions. That’s where our expertise is – developing implants, surgical tools, stimulat326
ing nerves and adapting sound in a way that the brain can interpret it as close to the experience of natural hearing as possible.” Of course, underlying and enabling that central competency is a raft of different business functions, but Hairer is clear that the business as a whole is inspired by this mission. “We are very research driven – that’s how the whole company works. We are pioneers. We are challenged by nature, by the human body, and what we all have in common here is the question: ‘What can we do as a company that leads to better outcomes for our customers?’. This is always the number one priority. It’s not profit. Of course, we need to make money, but it’s much more important the customer has the best outcome, which itself leads to increased profits.”
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MED-EL
“ We are very research-driven – that’s how the whole company works. We are pioneers” — Martin Hairer, Chief Digital Officer, MED-EL 328
As Chief Digital Officer (CDO), his role at the business involves overseeing the company’s internal technological progress. “I am the senior technology executive here at MED-EL, responsible for creating and implementing plans, ensuring they align and driving them. We support our critical line of business, develop customer-centric solutions and streamline business operations through the use of technology and continuous improvement processes to fulfil our customer’s needs.” Hairer’s approach involves finding new solutions, for the benefit of all stakeholders. “I try to motivate people to innovate, to think outside the box and find better solutions, not only from a technology perspective but also one that fits the needs of the customer.”
AUGUST 2020
AudioLink Hands-On: Listening to Music | MED-EL CLICK TO WATCH
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0:59
329 As CDO, Hairer has overseen the implementation and utilisation of several technologies. Cloud is one
to concentrate more on our core competencies and processes.” As a global company, operational
such area, with the organisation rely-
excellence is crucial, an area where
ing on a selection of cloud providers.
automation technology has proved a
“We are a worldwide company, so
boon to MED-EL. “Robotic process
connectivity’s always a huge topic
automation is heavily used here. New
for us, not only internally but in terms
processes are automated every day,
of connecting to our customers. With
allowing us to avoid mistakes from
the cloud, we now have the option
human errors, and so on. Of course,
to scale much faster, while also
automation is also crucial in the direction
increasing IT security tremendously,
of manufacturing – answering the ques-
all while handling this across different
tion of how we can develop and produce
continents. For us, it was the helping
more of our implants with the same
hand giving us the possibility
setup of human resources, for example. b u s in e s s c hie f. e u
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MED-EL
332
MED-EL is exploring a number of
feedback immediately. In the past,
new directions to empower its cus-
that’s something you could only get
tomers. One is a mobile application
specifically with professionals offering
known as ReDi App. “Artificial intel-
speech therapy. Now, we can further
ligence (AI) is now heavily used by us
support our customers to be able to do
to help and self-enable our customers.
this in addition to the speech therapy
One example is the ReDi App, a prod-
at home or on the train and so on.”
uct we’ve launched already in several
Another innovation has seen the
countries. It helps the user to train
launch of a platform known as MED-EL
language skills, meaning we analyse
& more, the capabilities of which
speech and give advice on how you
Hairer explains: “We’ve been working
can improve your language develop-
for a couple of years to onboard part-
ment, and you can get real-time, live
ners and develop service into
AUGUST 2020
a platform that would be helpful for our
audio processor, or training to hear
customers. MED-EL & more is the first
phone calls in a noisy environment,
club model we have for our custom-
for instance.”
ers, fully equipped and facilitated by
Various partners have been sup-
our myMED-EL portal. It is fascinating
porting MED-EL on its ongoing digital
how fast-growing the demand is to
journey. “We use the big players like
not only get exclusive offers in terms
Amazon Web Services, of course, as
of discounts, but get services that fit
well as Microsoft Azure. We use a lot
perfectly for someone in a specialist
of SaaS solutions. For example, we
situation, like a person who lives with
use Auth0 as our central authentica-
a cochlear implant and has additional
tion mechanism for our customers.
needs like support to maintaining the
We have a huge set of partners we’re 333
E X E C U T I V E P R OF IL E :
Martin Hairer Title: Chief Digital Officer
Company: MED-EL
Industry: Medical Device
Location: Austria
I’m an incurable optimist who believes in a bright future and our ability to enable everyone through technology. I like to solve problems. Throughout my career, I have been driven by my intellectual curiosity to find answers to the most pressing questions. Whether it’s finding a use-case for new technologies or finding a unique technique for a special use-case, I’ve been able to quickly uncover a customer’s pain point and identify a strategic solution. With my refined skill set, I bring customer-centric mindfulness that enables me to innovate and thrive. My intellectual curiosity also drives me to be a lifelong learner. b u s in e s s c hie f. e u
MED-EL
334
“ There is so much more potential to improve the quality of life for our customers” — Martin Hairer, Chief Digital Officer, MED-EL
AUGUST 2020
working with – there is not one set
It’s horrible to do this on your own.
of products from one company you
You need an army of cybersecurity
can buy to become fully digital.”
specialists who keep only one tool
One crucial partnership is with
up and running safely, and that’s
secure collaboration provider Box,
exactly where Box came in. It provides
as Hairer explains. “As you can imag-
us a really nice way to collaborate
ine for us with our business partners
across the company and partners.”
and clinics, data and information,
Aside from internal evolution,
exchange and collaboration is a very
MED-EL is also witnessing a change
important topic. Everything we can
in the expectations of customers,
improve in that regard has a tremen-
which it endeavours to address. “It’s
dous impact on cost savings and
fascinating to see the patient culture
quality and outcomes for the users.
change. As far as I can recall, it was
Before our cloud transformation
always that inventors and professionals
here at MED-EL, we tried to maintain
pushed something into the med-tech
everything with data exchange tools.
industry, and patients received it. Now, patients are more seen as
DID YO U KN OW ?
• 2,200 employees from around 75 nations with 30 locations worldwide • Enable people in 124 countries to enjoy the gift of hearing • Its systems have restored hearing to more than 200,000 individuals worldwide.
customers and can influence future products and solutions. That’s a shift you can see in a lot of other industries, of course, with customercentricity and building products based on customer feedback. “With digital-savvy customers expecting a certain level of offering, Hairer and his team are rising to meet the demand. “Customers are now saying: ‘I know that this is a great device or solution, but why does it need to be more complicated b u s in e s s c hie f. e u
335
MED-EL
AudioKey Hands-On: Creating an Account | MED-EL CLICK TO WATCH
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AUGUST 2020
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1:27
“ AI is now heavily used by us to help and self-enable our customers” — Martin Hairer, Chief Digital Officer, MED-EL
than ordering something on Amazon?’. It’s challenging us to find better ways to make things more customisable and to engage with our customers much more deeply.” Like all companies around the globe, MED-EL is finding it has to adapt to a changing world, but Hairer is cautious of predictions of a so-called ‘new normal’. “We often hear this from politicians and governments all around the world, but I don’t know what the ‘new normal’ is. It implies that there is an old normal. Of course, we have a roadmap, but this is not a new road we’re going
b u s in e s s c hie f. e u
337
MED-EL
1990
Year founded
200,000+
Systems used to restore individuals hearing
2,200 338
Number of employees
down.” Accordingly, Hairer sees the
we need to deal with a lot of different
chief outcome of the pandemic for
government regulations and laws
MED-EL as being an acceleration of
around the globe. Every country is
existing programs. “It’s reprioritised
dealing with the pandemic in their
our thinking. The stage we thought
own way, making their own rules,
we’d be at in a year is already here.
and that means we need to make
And I’m really glad to see that this
sure that we fulfil all these require-
is the pace we change things, and
ments, with social distancing being
move forwards.”
number one. “It’s like Charles Darwin
That ability to react with agility
said. It’s the most adaptable species
comes despite the company’s scale.
on this planet that survives. And this
“We operate in 124 countries, with
is something that fits perfectly with
our offices in 30 countries, meaning
MED-EL.”
AUGUST 2020
“ It’s fascinating to see the patient culture change” — Martin Hairer, Chief Digital Officer, MED-EL 339
As for the future, Hairer believes
implants and non-implantable devices
MED-EL is well equipped to thrive
and accessories, but also real digital
despite the challenges presented
services. We have seen that there
thanks to new avenues of exploration.
is so much more potential to improve
“We are a technology company, an
the quality of life for our customers
engineering, research-driven firm and
and this will play a huge part for the
it means we adapt to new challenges
company in the next couple of years.”
quickly. For that reason, I believe that this current situation is a catalyst, not only for the whole healthcare industry, but for us as a company to put digital technologies much more into our product portfolio. That’s not only b u s in e s s c hie f. e u
340
AUGUST 2020
Staying the country’s first choice WRITTEN BY
341
WILL GIRLING PRODUCED BY
LEWIS VAUGHAN
b u s in e s s c hie f. e u
BH TELECOM
Adnan Huremovic, CTO, discusses how BH Telecom’s technological expertise, innovative culture and customer-centric focus has made it a leading provider
L
ocated in Sarajevo, Bosnia and Herzegovina (B&H), BH Telecom was founded in 1992 with the vision of pro-
viding high-quality telecoms services using the most up-to-date technology available. Now, 28 342
years later, the company has risen to become the country’s leading operator and its dedication to providing the best for its customers has not wavered. A shareholding company but 90% publicly-owned, an integral component of BH Telecom’s motivation for success is the betterment of national network infrastructure, which it facilitates through competitive fixed phone, mobile, internet and IPTV services. With over 3,200 employees and a managerial strategy which prioritises innovation, fast R&D and comprehensive solutions, BH Telecom has indelibly left its mark on B&H’s telecommunications sector. Part of the BH Telecom journey for over 16 years, Adnan Huremovic joined the company as an Associate for Access Networks and steadily worked his way up to his current role as Chief Technology Officer in 2018. “The AUGUST 2020
343
b u s in e s s c hie f. e u
BH TELECOM
“ From my first role when I was working in infrastructure, then later to project planning and finally as a board member, my life and career are connected to communications” — Adnan Huremovic, CTO, BH Telecom 344
telecommunications field was my primary professional interest when I started,” he explains. “From my first role when I was working in infrastructure, then later to project planning and finally as a board member, my life and career are connected to communications.” A true expert in his field, Huremovic has maintained a relationship with his alma mater – the University of Sarajevo – as an academic and teacher, which, he states, continues to shape his approach to the CTO role at BH Telecom. “On one side, I have the opportunity to share ideas and my practical and business-related knowledge with future engineers. On the other, the students of the telecoms department are potential future employees.” It is, perhaps, this openness to change and fresh perspectives that has led to BH Telecom’s superlative workplace culture – the driving force behind its success, Huremovic claims. Striving to create an atmosphere which encourages and rewards the collective progress made by teams, whilst still taking the time to recognise the contributions of individuals, the
AUGUST 2020
365 of the most beautiful stories BH Telecom CLICK TO WATCH
|
1:29
345 company has succeeded in fostering
BH Telecom’s status as a government-
an environment where innovation can
owned organisation. “We are a public
develop naturally. “As a result, we have
company; our values are not solely
a lot of technical service solutions that
oriented to profit. Rather, our vision is
are made solely within the company.
the prosperity of all society.”
For example, our web-based TV ser-
Despite BH Telecom’s impres-
vice, our web portal and payments,
sive status and standing as the
also – f-commerce (mobile prepaid
leading company in its market, it
recharge through fixed line, IPTV
has steadfastly refused to rest on
etc.), billing systems and mobile apps
its laurels or become complacent.
are completely developed in-house
Formulating a clear and successful
by our engineers.” Another factor
digital transformation strategy has
of its success stems from a highly
been instrumental in cementing the
customer-centric ethos, a natural
company’s position. “The most impor-
consequence, states Huremovic, of
tant thing we needed to adapt was b u s in e s s c hie f. e u
BH TELECOM
www.qssbh.com
Accelerate your success in the digital era QSS helps telcos accelerate digital transformation. Our IoT, fintech and analytics solutions enable telcos to become agile and competitive digital service providers.
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mindset,” says Huremovic, “across all levels, from workers up to managerial staff.” Providing intensive training and workshops across BH Telecom, the company was able to illustrate why tech progression was integral for business continuity and what benefits it would bring. This included enhanced efficiency through the digitalisation of paper-based processes, which streamlined myriad operations within the company, including procurement, payments and billings, sales, customer service and more. The goal of becoming faster and better also emphasised the importance of BH Telecom’s partner ecosystem, which has been invaluable as a source of innovative new technology. BS Telecom, a manufacturer and supplier of integrated telecom systems for data processing, and one of BH Telecom’s key collaborators, has been instrumental in supporting its projects, both past and present. “BS Telecom has been one of our most valuable partners for a very long time,” says Huremovic. “It’s already helped us achieve some
E X E C U T I V E P R OF IL E :
Adnan Huremovic Title: CTO Company: BH Telecom Industry: Telecommunications Adnan Huremovic is an acting CTO at BH Telecom Sarajevo. Born in 1980, graduated and achieved MsC, and PhD in electrical engineering at University of Sarajevo until 2016. Huremovic started as interim in BH Telecom Sarajevo in 2003, and worked on a number of various positions within the company. He became a member of the board in 2015 as a Chief investment Officer, Director of core network, and currently as a CTO. In this period, Huremovic managed implementation of new IMS and packet core network, complete 4G network swap, and 5G testing. He also teaches at the University of Sarajevo, and leads Bosnian Society for Telecommunication.
great projects, such as our previous SMS platform, and our existing ADMS b u s in e s s c hie f. e u
347
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platform. Currently, we are working on
explore artificial intelligence (AI) appli-
a very difficult project for a new billing
cations as its 5G capabilities develop
system. It’s one of the most complex
further. As part of its commitment to
IT projects we’ve had for a couple of
liability and providing its customers
years, but, because of our strong past
with the best experience possible, BH
relationship, we are very confident
Telecom has also rigorously developed
that this will be another joint success –
in-house end-to-end cybersecurity,
that’s the high level of confidence that
including DDoS protection, state-of-
we have in BS Telecom as an integrator
the-art application firewalls and fraud
for this endeavour.”
detection. However, one of the primary
Already utilising hybrid cloud
challenges of the modern telecom
computing and IoT within its digital
industry is the fast-paced nature of
transformation journey for the past
tech development and its ability to
five years, the company is planning to
completely transform old paradigms
AUGUST 2020
“ We are a public company; our values are not solely oriented to profit. Rather, our vision is the prosperity of all society” — Adnan Huremovic, CTO, BH Telecom
of working. Emerging global trends, such as 5G, have the ability to reshape the customer experience and the task, states Huremovic, will be for BH Telecom to prepare the necessary infrastructure to utilise it. “The big challenges are likely to be the regulatory and legal issues,” he says. Therefore, BH Telecom has a didactic role to play, along with its partners, in introducing this revolutionary new infrastructure to the public and authorities. “At the end of the road, we expect to see a 349
b u s in e s s c hie f. e u
BH TELECOM
BS TELECOM
350
BS Telecom is an IT and manufacturing services company for the telecommunications sector. Founded in 2002, its corporate vision has been to research and develop custom solutions for the latest problems experienced in the industry. A valued partner of BH Telecom for several years, Adnan Huremovic emphasises the value and importance of BS Telecom in its past and future endeavours. “BS Telecom has been one of our most valuable partners for a very long time,� he says.
AUGUST 2020
fully-covered high speed, low latency network. From that, we’ll then have the basis to build newer services.” Trust and its standing within the community is paramount to BH Telecom. Whilst the COVID-19 pandemic has been a difficult experience for everyone, Huremovic says that the company also recognised it as an opportunity to prove its mettle. “Interestingly, we didn’t experience many problems or delays as far as technology development was concerned. I believe that this crisis actually motivated our employees to demonstrate that BH Telecom is something people can rely on.” Throughout the pandemic so far, the company has managed to avoid data congestions and network dropouts on services which have become vital as customers live and work primarily from home. Additionally, BH Telecom has granted access to critical services free-ofcharge to schools and students. Through its actions, BH Telecom continues to manifest its values and mission; one of the few governmentowned telecoms in B&H, its position and prestige as the best is a reputation b u s in e s s c hie f. e u
351
BH TELECOM
352
“ I believe that this crisis actually motivated our employees to demonstrate that BH Telecom is something people can rely on” — Adnan Huremovic, CTO, BH Telecom
that it intends to keep. Foreseeing a shift in the sector, the company is diversifying to include investment in domestic fintechs and focusing on expanding its capacity to include content production. Regarding the latter, Huremovic adds, “We already have some investments in local and regional content companies that we plan to build or even acquire. I see a global orientation toward content as something that will benefit every telecom’s portfolio.” Concurrently, fintechs and
AUGUST 2020
2002
Year founded
3,242 Number of employees
353
domestic startups will be assisted by
he concludes, “it’s that the integra-
BH Telecom’s ‘Start IT Up’ initiative, a
tion of digital processes and digital
programme which the company hopes
transformation has been accelerated
will position it as a central platform in
dramatically. During this time, it’ll play
B&H’s startup market.
an important role in keeping the econ-
Reflecting on the challenges of
omy healthy and allow the company to
2020 so far and how it will shape the
flourish. I think, after this situation has
market moving forwards, Huremovic is
passed, BH Telecom and its partners
proud of what BH Telecom has man-
will be on a whole new level.”
aged to achieve and feels confident in the new direction it has selected. “If there’s any silver lining in this pandemic situation for the telecoms industry,” b u s in e s s c hie f. e u
354
Driving digital transformation in South Africa WRITTEN BY
SEAN GALEA-PACE
AUGUST 2020
PRODUCED BY
JAMES BERRY
355
b u s in e s s c hie f. e u
TELKOM
Head of Data Insights Management at Telkom, on the challenge of navigating the South African market amidst a digital transform
T
elkom is a leading communications service provider in South Africa, operating in more than 38 countries across the continent of
Africa. Founded in 1991, it has transformed from the only telecommunications provider in South Africa to the diversified organisation delivering end-to-end 356
solutions to consumers and enterprise customers that it is today. Telkom serves a range of business and residential customers and has all the key components of true convergence, allowing the organisation to provide integrated voice, data, fixed, mobile, IT and data centre solutions. Zjaen Coetzee is Head of Data Insights Management at Telkom. He affirms his organisation has significantly changed the way it operates over the last decade. “In the last 10 years, Telkom has transformed from a fixed line operator to a mobile operator,� he says. “We own and operate several subsidiaries; we do property management through gyro as well as the traditional Yellowpages, but we now have a complete digital platform incorporated specifically called Telkom SMB. We have a retail business that does mobile AUGUST 2020
357
b u s in e s s c hie f. e u
TELKOM
and fixed line for consumers. We also
in other countries in packaging and
have BCX, which is the largest ICT
delivering solutions that don’t work in
company in South Africa, and has an
South Africa. However, this isn’t unique
international footprint specialising in
to us and is also the case for many
everything ICT-related. We really have
other telecom providers in the country.
become a fully diversified platform.”
South Africa is extremely diverse and
Coetzee believes there are sub-
it’s important that whatever you do in
stantial hurdles to overcome in the
packaging, it adds value and your ser-
South African market. “Navigating the
vice is reliable.”
market is the biggest challenge that we
358
In a bid to address a skills short-
face. There’s a big drive to cut down on
age in the country, the Explore Data
costs because people obviously want
Science Academy (EDSA) was estab-
cheaper services,” he says. “There’s
lished to increase local data science
also the cultural challenge because
skills through partnerships and spon-
there are things that typically work
sorship from large organisations to tap
“ We really have become a fully diversified platform” Zjaen Coetzee, Head of Data Insights Management, Telkom
AUGUST 2020
Telkom: Unlimited WiFi on Telkom DSL CLICK TO WATCH
|
0:30
359 into this resource pool. Since its incep-
Engineer at Telkom, believes there has
tion in 2016, over 1,000 students have
been significant focus on developing
gone through the programme. “The
the role of the data scientist. “It has
EDSA has grown to become a massive
worked very well and injected lots of
learning platform that caters for data
resources into the marketplace,” he
science training in several ways, as well
says. “Telkom has benefited con-
as for individuals to use it to change
siderably as we see data scientists
career or pursue their passion in data
appointed into different divisions, as
science,” says Coetzee. “It has short
well as assisting with other types of
and long courses and ranges from
workloads that are powering Big Data.
high school programmes to executive
We’re also centred around enabling the
training. The prime aim was to invest
data engineering type of training and
back into the South African market
providing for those roles too.”
and get a running pipeline of skills to tap into each year.” CJ Smit, Lead Data
Smit understands the importance of leveraging Big Data into operations b u s in e s s c hie f. e u
TELKOM
360
and affirms harnessing value remains
People don’t always understand that
the key. “The traditional way in which
Big Data isn’t just the only technology
we produced customer insight and
that they use but is also one of the
recommendations was to simply
necessary technologies to enable
analyse transaction activity in a data
quicker time to value. It’s important to
warehouse,” he says. “However, the
deploy the right technology at the right
limitation is that only transaction
time in order to produce the quickest
activity is analysed. It doesn’t include
time to value.”
analysis of other high value data that
Thembani Phaweni, Senior Data
when pieced together offers a much
Scientist in the BCX division, believes
more complete understanding of a
Big Data has brought significant ben-
customer’s DNA. Therein, lies the
efits to countries such as South Africa
problem. We have to understand the
that have vastly different speaking
customer from a holistic perspective.
cultures. “There are many advantages.
AUGUST 2020
“ Navigating the South African market is the biggest challenge that we face” Zjaen Coetzee, Head of Data Insights Management, Telkom 361
As a retail focused business, distrib-
that while no one can successfully
uted technology personalisation and
predict the future accurately, instead
autonomous or smart technology have
you can take a view on the kinds of
all been key drivers,” says Phaweni.
technologies that seem promising.
“Personalisation is possible with deeper
“Automatic Speech Recognition (ASR)
insights into customer behaviour and
is one of those promising technologies
their preferences. This means more
especially in a market as diverse and
granular segmentation and user driven
culturally rich as Africa,” he says. “The
product development. Autonomous
challenge is that speech requires good
and smart technology means fibre
and large datasets many of which don’t
networks and towers that report their
exist and others are simply too small
own faults and eventually autonomous
for commercial tools. Of course, the
agents that can repair them without
ASR does not standalone, it requires a
risking human lives.” Phaweni believes
plethora of natural language tools.” b u s in e s s c hie f. e u
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TELKOM
364
“ Automatic Speech Recognition (ASR) is one of those promising technologies, especially in a market as diverse and culturally rich as Africa� Thembani Phaweni, Senior Data Scientist, BCX
AUGUST 2020
When beginning its data science journey in 2016, the first partner that Telkom collaborated with was Cloudera for a formal Big Data platform and the alliance remains strong today. “Cloudera has played an influential role and assisted in shaping the roadmap and strategy for expansion, as well as increasing capabilities in tandem with BCX. As part of that, there is a strong partnership with BCX and Cloudera from an external marketing facing perspective” explains Coetzee. “For our cloud-based solutions we use Google Cloud Platform to develop and host most of our data science and analytics cloud-based applications and proprietary tools. Paired with this and the drive to rapidly prototype and deliver solutions faster we required a strong local partner that can assist with leading technology and for this we use Slipstream to manage our Tableau and Alteryx licencing, support and training relationships.” Coetzee understands the importance of forming sustainable and mutually beneficial partnerships. “We’re typically seeking a collaboration with someone that has the capabilities to support us, because if we do run into b u s in e s s c hie f. e u
365
TELKOM
366
any issues such as licencing then they
overall digital literacy within the organi-
can be easily resolved,” says Coetzee.
sation across the business,” explains
“We must always ask ourselves: is it
Coetzee. “We’ve been pushing data
affordable and does it make sense?
literacy for some time but people aren’t
Ultimately, it must be a company that we
always aware of the true value of data.
can go on a journey with and they must
This is one of the biggest challenges
be open to offering continuous support.”
that we face in terms of Big Data
Over the next few months, Coetzee affirms that Telkom will focus on data literacy. “Data literacy is a massive
because if you forget about the value of data then the platform won’t work.” With the future in mind, Thembani is
driver and over the next few months,
excited about the impact that speech
we will be focusing on increasing the
technology could have on the South
AUGUST 2020
“ It’s important to deploy the right technology at the right time in order to produce the quickest time to value” 367
CJ Smit, Lead Data Engineer, Telkom
African landscape. “We’re invested in
for English does not work very well on
technologies that provide a richer user
South African accents. We’ve since
experience,” says Phaweni. “We are
realised that we need to build our own
very passionate about computer vision
ASR. We are starting by building a large
and natural language processing. The
dataset with thousands of hours of
future of autonomous technology is
transcribed audio. We’re excited about
very promising. Speech technology is
the potential that this has.”
a fascinating and important area going forward. We recently built a prototype meeting assistant for the South African market. We quickly realised that Automatic Speech Recognition (ASR) b u s in e s s c hie f. e u
368
Leading the way: Dr Soliman Fakeeh Hospital drives digital health transformation in Saudi Arabia WRITTEN BY
RACHAEL DAVIS PRODUCED BY
MICHAEL BANYARD
AUGUST 2020
369
b u s in e s s c hie f. e u
D R . S O L I M A N F A K E E H H O S P I TA L
A visionary approach to medical technology has improved clinical results, boosted patient satisfaction and reformed healthcare at Dr Soliman Fakeeh Hospital, Saudi Arabia. CIO Dr Nitin Verma shares his journey to success
“ 370
L
eading, not following” is the reason Saudi Arabia’s Fakeeh Care is distinguished in the Middle East, according to CIO Dr. Nitin Verma.
Through refined processes and implementation of the best technologies, Fakeeh Care is paving the way for medical facilities across the region to create a more efficient, harmonious and satisfactory experience for patients, families and medical professionals alike. Over the last six months, Dr Verma has transformed the groups’ attitudes towards high technology. His clinical background enables a perceptive understanding of the practical applications of technology, and for the past two decades he has been helping develop technology within the medical sector – from a time when very few clinicians had a hand in IT. Now, under Dr Verma’s direction as Chief Information Officer, Fakeeh Care is “leading the healthcare digital transformation in the Kingdom of Saudi Arabia.” AUGUST 2020
371
1978
Year founded
3,500+ Number of employees
b u s in e s s c hie f. e u
D R . S O L I M A N F A K E E H H O S P I TA L
“ Our preference is always to work with vendors who can work as a partner in our digital transformation” 372
— Dr Nitin Verma, CIO, Dr Soliman Fakeeh Hospital
Creating a user-friendly, multifaceted mobile application for its patients, available in both English and Arabic, was a major breakthrough for Fakeeh Care. While other hospitals in Saudi Arabia have also developed apps to help their customers with their treatment journey, Fakeeh Care mobile application stands out with its awardwinning design. The mobile app incorporates features such as a ChatBot to handle queries, a platform for patients to access lab results, radiology results, medication prescriptions, and a sophisticated online billing platform which eases queueing times and stress for patients after treatment. As Fakeeh Care sees anywhere between 5,000 and 8,000 outpatients every day, with over a quarter travelling hundreds of kilometres to the hospital, a revolutionary component of the app is an online consultation platform. A virtual follow-up consultation for outpatients who have had tests at the healthcare facilities saves time, stress and money, as they can receive the required aftercare without having to return to the hospital.
AUGUST 2020
Fakeeh Care: Virtual Consultation CLICK TO WATCH
|
2:20
373 Alongside medication prescription
through an AI solution which highlights
details being available within the app,
the second section of the image,”
Fakeeh Care has also developed a fea-
Dr Verma says. “The AI enables a
ture which sets reminders for patients
deeper insight into what is wrong with
to take their medication. “This has
the image, and therefore what could
enhanced compliance with the medi-
be wrong with the patient.”
cation, resulting in an improved clinical outcome,” says Dr. Verma. In a clinical setting, AI and robotics
As a result of AI assistance, the total time taken to report on a radiology image at Fakeeh Care has
are being utilised by departments
been reduced by 75%. This not only
within the hospital to improve accuracy,
improves operational efficiency in
negate human error, and enhance
radiology, but empowers radiologists
operational efficiency.
to delve deeper into the abnormal-
“Any radiology imaging which radiologists have to report on can be put
ity identified by the AI and enhance patient care. b u s in e s s c hie f. e u
We enable healthcare providers to leverage their clinical and operational decision support along the patient pathway Siemens digital health solutions help healthcare providers applying Artificial Intelligence in healthcare, operationalizing the value of big data and Connecting care teams and patients
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With any digital transformation, the
“Our preference is always to work
right vendor and supply chain relation-
with vendors who can work as a part-
ships are important – but Fakeeh Care
ner in our transformation, and we are
recognises the extra responsibility
working with multiple strategic vendors
demanded of it as a medical care pro-
to realise our vision. There are very few
vider. “Fakeeh Care has a policy that
which I could call ‘strategy partners’,
we work with our strategic vendor in a
but Siemens is one such key partner
partnership, not in a client-vendor rela-
in our digital health transformation,”
tionship,” says Dr. Verma.
Dr. Verma says.
One such partner of Fakeeh Care
Leading such a vast change in a
is Siemens. Siemens’ solution is used
matter of months, Dr Verma has been
extensively in the hospital’s radiology
acutely aware of the importance of a
department, which is seeing a vast
comprehensive change management
digital transformation.
strategy. His approach is to lead a new
E X E C U T I V E P R OF IL E :
Nitin Verma Title: Chief Information Officer Location: Saudi Arabia Dr. Verma is a medical graduate of the University of Delhi, India and has an MS in pharmaceutical sciences from the US. He has over 27 years of global experience across a broad range of ITES/ Healthcare Technology and Healthcare Operation Management. As the Chief Information Officer at Dr. Soliman Fakeeh Hospital, he is redefining the healthcare strategy, roadmap and approach for the group to further strengthen its leadership in the provider landscape in the Kingdom of Saudi Arabia. b u s in e s s c hie f. e u
375
“ The end goal is helping patients, clinicians and the hospital to bring more efficien y to medicine” — Dr Nitin Verma, CIO, Dr Soliman Fakeeh Hospital
culture from the top, starting with the
of making the learning curve for staff
hospital’s CEO. It is equally important
as short and accessible as possible.
to the change management strategy
At Fakeeh Care, the change man-
that change is also led from the bottom,
agement strategy combines a rational
engaging employees at every level
and emotional approach. “The leader-
early on in the process.
ship team will often make the case for
“With a committee and a well-aligned
the major change on the sole basis of
group of executives strongly supported
a strategic business objective,” says
by the top management, alongside
Dr. Verma, “but these reasonings rarely
engagement with employees at lower
reach the people in the middle and bot-
levels, you can ensure the strategy is
tom staff layers emotionally.
led cohesively,” Dr. Verma says.
“If you can combine your rational
On the ‘front line’, group staff who
approach with an emotional approach,
will be hands-on with the new tech-
you can reach every layer of the organi-
nology are given comprehensive but
sation. Human beings respond to the
concise training. This training includes
call to action that engages their heart
instructional videos to reduce the need
as well as their mind, and it makes
for manually requesting IT help for
them feel as if they are part of some-
minor issues, among other methods
thing great, something consequential.”
b u s in e s s c hie f. e u
377
D R . S O L I M A N F A K E E H H O S P I TA L
The last part of the change management strategy, Dr. Verma says, is to “engage, engage, engage.” Giving staff what they need to start using the applications, following up with them every 48-72 hours, and creating a manual or automated tool to see the practical utilisation of the technology increases uptake and satisfaction amongst all staff. Digital transformation at DSFH is accelerated by the “visionary” leadership and “tech-savvy” CEO. The hospital’s founder and namesake, Dr 378
Soliman Fakeeh, established the hospital in 1978 with advanced solutions and technology at its core. It was the first hospital in Saudi Arabia to have a CT scanner - revolutionary even mere decades ago. The current President and Chairman of the Board, Dr Mazen S. Fakeeh, has enabled a corporate strategy which “never shies away from an investment in technology,” Dr. Verma says. “When I present him the digital health strategy, his curiosity means he is open to any new technology as long as it meets the end goal: helping patients, clinicians and the group to bring more efficiency to medicine.” AUGUST 2020
Taking the group to the “next level” is at the core of Dr Verma’s digital health strategy, and IT was one of the key factors behind its journey to becoming “one of the most prestigious healthcare groups in Saudi Arabia today.” Embracing the latest technological innovation not only from the Middle East, but from Europe, America and the rest of the world, and bringing them to the group at the earliest opportunity, means it is “not a follower in digital health transformation, but a leader in the Kingdom of Saudi Arabia.” The company’s president concludes: “Fakeeh Care strongly believes that digital transformation-enabled healthcare delivery is the way to move forward. Digital transformation has created a bridge between us and our patients enabling them to be engaged in their own care resulting in improved compliance and a better clinical outcome”.
b u s in e s s c hie f. e u
379
380
A living laboratory for innovation and advanced tech WRITTEN BY
GEORGIA WILSON PRODUCED BY
MICHAEL BANYARD
AUGUST 2020
381
b u s in e s s c hie f. e u
KING ABDULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY
Jason Roos, CIO at KAUST and Mohamed Abdel-Aal, Head of Digital Experience and Innovation at KAUST Smart, discuss the university’s living laboratory approach and research innovations
J
ason Roos has been the Chief Information Officer (CIO) at King Abdullah University of Science and Technology (KAUST) for
just under three years. “Prior to coming to Saudi 382
Arabia, I was the Chief Technology Officer (CTO) and Vice President of a large cancer research centre in Southern California and the CTO and Vice President of Stanford University’s medical centre. A vast amount of my career has been within an academic medical setting.” Reflecting on when he first started at KAUST, Roos explains that he was already familiar with the Middle East having lived in the UAE before. “However, I had never lived in Saudi Arabia,” comments Roos, “it wasn’t until I was brought onsite to see KAUST that I was truly convinced of how incredible the place is. KAUST is very unique. We are currently in our tenth year of existence, with the ambition to build a world-renowned research and academic institute for Master’s, and doctoral degrees that is of the same caliber as MIT, the AUGUST 2020
383
b u s in e s s c hie f. e u
KING ABDULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY
“ We are a self-contained community – ‘a living laboratory’. It gives us the unique ability to develop and redefine smart cities and digital experiences”
California Institute of Technology and Stanford University. Therefore, over the last 10 years we have been working to build state-of-the-art facilities that will ultimately help to change the economic landscape of Saudi Arabia.” In addition to the research and academic institute, KAUST is surrounded by what Roos calls “a mini Silicon Valley”, to drive a culture of innovation
384
— Jason Roos, CIO, King Abdullah University of Science and Technology (KAUST)
and technological advancement. “As CIO I am not only responsible for the institute, but also for the entire ‘smart city’, comprising thousands of homes, as well as restaurants, shopping centres, a police department and a small hospital. Within the ‘smart city’ we have research centres from multiple Fortune 500 companies including Dow, Aramco and SABIC. Essentially, we are a self-contained community - ‘a living laboratory’. That gives us the unique ability to develop and redefine smart cities and digital experiences for the people that live, work and study within KAUST.” To help advance technological innovation for digital smart cities, “Microsoft has been one of our closest and most valuable partners in
AUGUST 2020
This is KAUST CLICK TO WATCH
|
1:03
385 this journey. When Microsoft first
Microsoft solutions portfolio as well
heard of the launch of the KAUST
as how to build upon that foundation
Smart Program they provided enthu-
to create new and innovative experi-
siastic support by hosting members
ences has been a critical component
of the KAUST team for a visit to
of our success thus far and we look
Microsoft’s executive briefing center
forward to advancing this partnership
at their headquarters in Redmond,
even further over the next year.”
Washington. This visit kicked off
Currently, within the world of tech-
numerous discussions about lever-
nology, Roos highlights that, globally,
aging KAUST as a living laboratory
there is a strong buzz around utilising
for smart city experiences and
artificial intelligence, machine learning
subsequently led to several design
and high-performance computing in
thinking sessions with an exceptional
order to leverage autonomous func-
team from Microsoft. Looking at how
tions and high levels of intelligence to
we can better leverage our existing
enhance an organisation’s capabilities. b u s in e s s c hie f. e u
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“At KAUST we want to utilise these
and Innovation at KAUST Smart, has
trends within our ‘living laboratory’ to
also seen an increased empowerment
drive innovation in computing, per-
of knowledge and decision making,
sonalised and precision medicine,
due to the way users interact with their
population health, traffic control and
mobile phones has evolved. “It adds to
mobility, to name a few. One area that
the situational awareness, which pro-
we are looking into at the moment is
vides a level of intelligence that we can
the application of autonomous vehi-
apply to automation,” adds Roos, “in
cles. Being an entire ecosystem city
the past you could automate, but you
we have the ability to control almost
couldn’t predict, which is where artifi-
every variable to thoroughly test these
cial intelligence and machine learning
vehicles to develop a usable service.”
has really provided a difference in
In addition to these trends Mohamed
automation to customise the individual
Abdel-Aal, Head of Digital Experience
experience. This is something we are
AUGUST 2020
E XE CU T I VE PRO FI LE
Jason Roos Jason Roos has more than 25 years of experience leading and managing information systems and technology organizations across the defense, healthcare, higher education, and high tech industries, including international experience in Europe and the Middle East. He is currently the Chief Information Officer for King Abdullah University of Science and Technology (KAUST) located just north of Jeddah, Saudi Arabia. Prior to joining KAUST in July of 2017, Jason served as the Vice President and Chief Technology Officer at City of Hope Cancer Research Center in Los Angeles after serving for several years as the Vice President and Chief Technology Officer for Stanford Health Care at the Stanford University Medical Center where he led the overall technology direction and operational delivery for all of Stanford Medicine’s Adult Hospitals and Clinics. His career highlights include working as an executive for the leading cyber security firm Symantec, where he led the application development and production support teams supporting Symantec’s global e-commerce platform and experience as the Senior Director for Technology with the Cleveland Clinic Abu Dhabi Hospital located in the United Arab Emirates. Jason began his career serving in various leadership roles for over ten years at Texas Children’s Hospital in Houston, Texas. His military experience includes serving as an Electronic Warfare Signals Intelligence Analyst in the U.S. Army’s Military Intelligence Corps, and later as a Medical Service Corps Officer specializing in healthcare technology and biomedical systems management. His formal education includes completing a healthcare administration postgraduate fellowship at Texas Children’s Hospital, a MBA from Texas A&M University, a BA from the University of Houston, and a diploma from the Defense Language Institute’s school of Arabic in Monterey, California. b u s in e s s c hie f. e u
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KING ABDULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY
“ If you don’t allow people to take risks – and occasionally fail – then you won’t encourage people to get out there and try to push those boundaries to create new innovations”
looking to leverage to create an intelligent and unique experience.” In order to achieve this Roos explains that there are multiple components to KAUST’s digital transformation strategy. “Although there is your traditional IT portfolio for basic applications to deliver your core business functions, in order to go beyond that and innovate, you need to look at the overall experience being provided to redefine and reimagine
390
— Jason Roos, CIO, King Abdullah University of Science and Technology (KAUST)
the basic portfolio. At KAUST we are looking to create a culture where people are allowed to experiment, to take risks and push boundaries to see what works and what doesn’t. If you don’t allow people to take risks - and occasionally fail - then you won’t encourage people to get out there and try to push those boundaries to create new innovations.” Currently at KAUST, Roos and Abdel-Aal are working on a number of innovation projects including autonomous vehicles, drone delivery, cashless pay and facial recognition. “Coming back to autonomous vehicles, we are assessing and experimenting with this technology for two different
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391
shuttles on a joint agreement that
phone? Can users book the shuttles
we’ve built with multiple companies,”
in advance? Can they interact with the
comments Abdel-Aal who explains
experience using a smart and interac-
the complexity involved when innovat-
tive bus stop? The third dimension is
ing in this area. “The assessment of
the actual research of the vehicles,
autonomous shuttles includes multiple
such as battery materials and artificial
dimensions, one being the operational
intelligence sensor technology. Finally
aspect. Can we run these shuttles?
the fourth dimension is optimised
Can we charge them? Can we maintain
operational cost.”
them? Will they withstand the heat? A
Further detailing the current innova-
second dimension is digital integration
tions at KAUST, Roos explains the
to develop a smart experience which
university’s development of its comput-
poses questions such as, will users
ing and storage capabilities. “When
be able to look up the route on their
KAUST was first established, our b u s in e s s c hie f. e u
Make the most of Teams
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KING ABDULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY
supercomputer “Shaheen” was an IBM
environment is managed by our
Blue Gene system which put KAUST
Core Laboratories, ensuring that
on the map for high-performance
our researchers and scientists have
computing to support our mission
access to high-end compute capa-
and research areas. KAUST’s second
bilities, which are commonly used for
generation supercomputer – a Cray XC
high-resolution modeling, simulations,
40, which has been in place since 2015
cloud and GPUs.”
- now supports the high-end research that we do. KAUST’s supercomputing
Other innovations the university is working on include drone technology
E XE CU T I VE PRO FI LE
Mohamed Abdel-Aal Mohamed Abdel-Aal is the Manager of Research and Computing Infrastructure at King Abdullah University of Science & Technology (KAUST). KAUST is an international, graduate-level research institution on the shores of the Red Sea in Thuwal, Saudi Arabia. In its eighth year of operations, KAUST is an ascending star of academic excellence with a mission to advance science and technology through bold and collaborative research. Mohamed oversees the University’s IT infrastructure, HPC cluster resources, cloud systems, data center facilities, and storage solutions. He also oversees strategic plans and initiatives to continuously improve computational capabilities and resources while introducing innovative solutions to the University’s faculty, researchers, and students. Mohamed holds an MBA degree and a Master’s degree in Computer Engineering from Rensselaer Polytechnic Institute in Troy, New York. b u s in e s s c hie f. e u
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and cashless pay. “Currently at KAUST we are exploring the potential of using drones beyond basic surveillance. In fact, our team is working with our facilities and community life group to look at how we could leverage drones for delivery to our smart houses. To achieve this would require KAUST to replicate the layout of the city into a digital twin in order to create drone corridors to manage the flight patterns of the drones. In terms of cashless payment, we are 394
currently piloting various forms of cashless experiences, including digital gateways and facial recognition
“ We have worked very closely with some of our partners and they have been valuable from the very beginning”
to create a unique experience for the users. We are also looking to develop cashless stores—building an environment where someone could walk into a store, grab what they need and, via something like facial recognition, biometrics or barcoding, the person is charged for what they have bought
— Jason Roos, CIO, King Abdullah University of Science and Technology (KAUST)
once they leave the store,” adds Roos. Reflecting on the university, Roos believes its biggest strengths are its world-class facilities for high-level tech research and innovation, and
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Year founded
5,000 Number of employees
395
its diversity in bringing the best from
partners and they have been valu-
around the world into one place. “I
able from the very beginning to drive
believe that KAUST, being only 10
innovation and develop technologies
years old and being world-renowned
and solutions. For KAUST, our part-
is a tremendous success. To achieve
nerships are critical for our success,”
this level of recognition after just
concludes Roos.
one decade is truly remarkable,” adds Roos, who highlights that this achievement has been a collaborative effort between the entire KUAST city, as well as its partnerships it has made over the years. “We have worked very closely with some of our b u s in e s s c hie f. e u
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Worten: digitally transforming to boost agility WRITTEN BY
GEORGIA WILSON PRODUCED BY
BEN MALTBY
AUGUST 2020
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Felipe Ferreira, Head of Digital Transformation at Worten, discusses the company’s digital transformation journey to becoming more agile and customer centric
F
resh out of graduating from Faculdade de Engenharia da Universidade do Porto with a degree in Electrical and System
Engineering, Felipe Ferreira started his career at Siemens Group as a Process Engineer for a semiconductor plant. “I left Siemens in 2001 to take an 398
MBA,” says Ferreira. “When I finished, I started working at SONAE (the holding company that owns Worten) roughly 18 years ago. Since 2017 I have been exclusively working at Worten, first as Head of Supply Chain, and by the end of 2018 I was invited to launch the Digital Transformation area. Describing Worten, Ferreira emphasises that the company’s vision is to be “a digital company, with physical stores and a human touch.” Worten’s objective is to expand the business, creating a distinctive value proposition, which starts with consumer electronics to serve the ever-changing consumers better and more comprehensively. “We are expanding our business into new territories of products and services and merging the best of the online and offline worlds, in the firm conviction that the near future will be omnichannel, rather than just AUGUST 2020
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digital,” he adds. “At Worten we believe that we can deliver business results around two ambitious ideas: that our brand is elastic enough to serve the consumers in more areas than just consumer electronics, sustaining their trust as we always did; and that the result of the merger of the digital world with the physical world can be much greater than the sum of its parts, especially if the human factor (emotional closeness, availability, personal attention, affinity) is maximised 400
as a differentiating factor.” Currently, Worten is going through
1996
Year founded
$1bn+ Revenue in US dollars
a major business transformation that will last for five years. As part of this strategy, “Worten is going to continue to grow online, invest in our marketplace and reinforce our omnichannel strategy,” explains Ferreira. “Another one of our priorities is to increase our product portfolio through the marketplace business model at Worten.pt and Worten. es, along with services that continue to
>1,500 Number of employees
AUGUST 2020
grow year after year in a clear strategy of offering our customers more and more convenience. At the same time, we are transforming the company through the digital transformation program,
Worten Portugal: Take a technological leap CLICK TO WATCH
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0:41
401 which Baringa has helped us to design.
from everyday life, to be a pleasant
In particular, Baringa has helped us in
space, and above all, to be a promoter
the discussion and conclusion of what
of collaboration, discussion and, con-
the new principles to guide us should
sequently, faster, higher quality results.
be and, mainly, in the identification and
We also created the slice and dice
guidance for the implementation of the
methodology, which divides a big prob-
first 2 key moments, or in other words,
lem into minor ones, up to the point
in the moments that have the most
of finding the actionable unit that we
impact on our customers.”
then act extremely quickly on.” Since
At the moment, Worten’s strategy
adopting this digital and agile approach
is to promote the digital culture, work-
Ferreira has seen huge benefits.
ing on the organisational aspects
“The first is that we are improving
and working methodologies of the
our customers’ experience since the
company. “We opened our digitalism
entire approach to finding the right
hub last June, to be a different space
solutions is focused on them. b u s in e s s c hie f. e u
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402
The second is that we are much quicker
Covid crisis. We had no setup time to
to act and deliver results with decisions
start working remotely because we’re
that are supported by data, helping us
used to collaborative tools and we could
to prioritise, act and then control imple-
launch several initiatives and services
mentation. Finally, we have created a
to adjust our offer to new market condi-
safety net for our teams so, if they fail
tions in less than three weeks.”
the “safety net” for our teams, if they
In addition to driving improved agility
fail there is no problem as they learn
within its operations, Worten is also look-
quickly from the error and try again
ing to change its operating structure.
with greater probability of success.
“It is going to be an iterative process so,
“Our efforts to kick off and promote
as we grow, we will realise what adjust-
this new mindset and way of working
ments we have to make to the model
in 2019 paid off since it is having a huge
so that more and more people are
impact on the way we reacted to the
involved, not least because we believe
AUGUST 2020
E X E C U T I V E P R OF IL E :
Felipe Ferreira
Title: Head of Digital Transformation Company: Worten Location: Portugal
it is the winning model. But we are more pragmatic than dogmatic, which means that there may be situations where this formula is not the most appropriate and there is no harm in keeping another one if that is the most effective way,” says Ferreira. Another key part of Worten’s
Felipe Ferreira is Head of Digital Transformation at Worten, a program which he has led from its inception. With more than 15 years of professional experience in the retail industry, over the last years Felipe managed the logistics operations of Sonae Specialised Retail and led many large and complex projects in the context of the Sonae Group. Felipe studied Systems and Electronics Engineering and took his MBA in 2002.
strategy is the redesign of the system architecture and the way its IT is organised and relates to the rest of the organisation. In fact, Ferreira explains that evolution at Worten “involves a lot of technology ‘entering’ the organisation and being part of the way Worten works.” b u s in e s s c hie f. e u
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“We had no setup time to start working remotely because we’re used to collaborative tools and we could launch several initiatives and new services to adjust our offer to the new market conditions in less than three weeks!” — Felipe Ferreira, Head of Digital Transformation, Worten
b u s in e s s c hie f. e u
WORTEN
Currently within the organisation, Rui Cohen, Head of IT at Worten explains the company’s use of business intelligence, artificial intelligence (AI), Internet of Things (IoT) and cloud technology. “We strongly believe that data and analytics will become one of the most important factors for future business competitiveness and success. We envision a fully integrated and unified data platform based on an open architecture that is capable of ingesting, processing and correlating large
Digital transformation. It’s not just about new technology or the latest in AI solutions. It’s about completely – and strategically – rethinking your business. It means bringing a digital vision to everything you do: from transforming your operating model to deliver profitable growth, to reshaping your supply chain to meet customers’ changing needs. At Baringa, we have helped countless businesses like Worten shape their transformation journeys, supporting them in the moments that matter, and ultimately enabling them to balance the need to deliver innovation and excellence with the cost of doing so. Not sure where to start your digital transformation journey? We can help.
www.baringa.com
E X E C U T I V E P R OF IL E :
Rui Cohen Title: Head of Technology Company: Worten Location: Portugal
“ Undoubtedly, I believe our people are our greatest strength because, besides having great know-how, they also have a great sense of belonging to the organisation and love to overcome the challenges they face” — Felipe Ferreira, Head of Digital Transformation, Worten
Rui has over 25 years of IT experience working mostly in internet, media, telco and retail industries. Back in 1995 he was one of the founders of the most successful Portuguese ISP that, in 1999, was bought by the telco branch of Sonae Group. Since then, he has been leading several IT structures within Sonae Group covering areas such as strategy, architecture design, infrastructure management, IT operations, service delivery, security and IT office. Rui graduated in computer science and information systems at the school of engineering of lisbon university (1ST) where he has also finished, in 1993, his degree in Master of Science in Computer Science and Information Systems.
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“ We are transforming the company through the digital transformation program, which Baringa has helped us to design” — Felipe Ferreira, Head of Digital Transformation, Worten
volumes of structured and unstructured data sets from multiple lines of business and operational sources, both in batch and in real-time, from internal and external sources. At the core of our transformational architecture initiative seats such a platform that will help us reinforce our customer centric and omnichannel strategy and reimagine the whole store experience,” comments Cohen. “Another IT principle at the core of our transformation is to adopt a cloudfirst approach, meaning that wherever possible and economically reasonable
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409
we will adopt cloud and SaaS solutions
culture and systems. “Undoubtedly,
to enhance speed, agility and innova-
I believe our people are our greatest
tion. In addition to these core principles,
strength because, besides having
Worten is also trailing the use of AI,
great know-how, they also have a great
machine learning, natural language
sense of belonging to the organisation
processing and IoT and we will ensure
and love to overcome the challenges
we deploy them in an ethical and trust-
they face. That has helped us to build
worthy way,� adds Cohen.
a brand of trust that has been recog-
Reflecting on his time at the com-
nised by our customers for over 20
pany so far, Ferreira has seen Worten
years, and that will be the pillar of our
make rapid changes in three key areas:
transformation to assure the next 20.�
increased product and services offerings, increased focus on customer experience and transforming its b u s in e s s c hie f. e u
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STATE STREET GLOBAL ADVISORS: DIGITALLY TRANSFORMING LEGACY OPERATIONS WRITTEN BY
GEORGIA WILSON
AUGUST 2020
PRODUCED BY
JAMES PEPPER
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S TAT E S T R E E T G L O B A L A D V I S O R S
JETINDER LALI, CHIEF DIGITAL OFFICER AT STATE STREET, DISCUSSES THE COMPANY’S DIGITAL TRANSFORMATION OF ITS LEGACY SYSTEMS AND ADOPTION OF INNOVATIVE TECHNOLOGY
T
hroughout his 25-year career, Jetinder Lali has been in the asset management industry, working for some of the largest
asset managers in the world, including JP Morgan, BlackRock and UBS. “After becoming somewhat 412
of a veteran within the industry I joined State Street Global Advisors as the Chief Digital Officer.” Lali describes State Street Global Advisors as the third largest asset manager in the world and a part of the world’s largest custodian. In 1993 State Street Global Advisors invented the world’s first exchange-traded fund (ETF), which has since grown to US$6trn organically. “We are innovators, we are leaders and we are collaborators.” Currently in the world of asset management, Lali has seen a shift within the sector that has seen technology taken more seriously. “It has become standard practice that digitalisation is either at the top, or is one of the top priorities of large asset firms. This is a direct result of our customers seeking more digital ways to engage with businesses. Data is also critically important and a challenge for the industry.” AUGUST 2020
‘Fearless Girl’ by Kristen Visbal, commissioned by State Street Global Advisors (SSGA), was installed on 7 March 2017 outside the New York Stock Exchange
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1978
Year founded
2,500+ Number of employees
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S TAT E S T R E E T G L O B A L A D V I S O R S
Since joining the company three years ago, Lali has led the company through its digital transformation program to unify its customer experience for the first time. “Due to the size of State Street Global Advisors, we have lots of different divisions and brands. As part of our transformation we have unified our divisions representing ourselves to our customers as one global firm, which took us 18 months to achieve. Now we are working on improving our back-end systems by 414
updating roughly 12 years of legacy systems and redundant websites.”
AUGUST 2020
“ WE RELY HEAVILY ON HAVING A CORE DATA INFRASTRUCTURE TO PROVIDE OUR SERVICES AS RECORD KEEPERS OF OVER 10% OF THE WORLD’S ASSETS” — Jetinder Lali, Chief Digital Officer, State Street Global Advisors
State Street Global Advisors: Who We Are CLICK TO WATCH
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As Lali explains State Street Global Advisors’ digital transformation strategy, he breaks it down into three simple words: “Simplify, unify and amplify. In order to achieve this it is important for us to build the right foundations and decide what our architectural roadmap will look like in order to get us to where we want to be in the future. Over the last 18 months we have certainly taken care of unifying our web experience, data platforms and analytic systems, providing our customers with a 360 degree view. We are also making great b u s in e s s c hie f. e u
IBM iX business designers envision brand experiences of the future and make them real.
Explore more at www.ibmix.com
SSGA Develops Next-Generation Digital Experience to Drive ETF Sales and Growth State Street Global Advisors (SSGA) is no stranger to shifting winds in the asset management sector. The organization’s parent company, State Street Corporation, is one of the world’s largest financial institutions. With increasing competition and demand for personalized content across each of its global practices, the investment management arm saw the opportunity to reimagine its digital experience to unify its global presence and more efficiently deliver localized content. Creating a Customer-Centric Digital Experience Platform—and an Operating Model to Support It In collaboration with long-time partner IBM iX, SSGA sought to more deeply understand their users’ needs across all points of digital engagement and build a world-class, frictionless experience to delight their customers. Anchored by several key guiding principles—such as moving from reactive engagement to proactive, enabling self-service, and leveraging data to better understand and refine the journey—SSGA and IBM iX set out to build not only an integrated digital platform to support their needs, but also establish and grow the right content capabilities and digital centers of excellence to support it in order to really drive measurable business value and ROI for the firm. Taking a design-led and human-centered approach, the team built a unified global digital experience platform (DXP) that would be customizable by region, language and investor types, complemented by a marketing data platform (MDP) to surface personalized content with a 360° customer view. IBM iX built the multi-site system on Adobe Experience Manager, replacing multiple custom legacy systems that were costly to
manage and led to disparate experiences. The new platform on AEM 6.3 Content Management System has a simplified and standardized design that leverages a responsive grid, seamless integration, with minimum customizations. To facilitate internal adoption of AEM, IBM iX also created a dynamic set of templates for SSGA’s marketing managers grounded in user-centric design principles to streamline the content delivery process. IBM iX also built a digital asset library and designed a governance model to reinforce brand consistency and efficiency across State Street’s digital ecosystem. Accelerated Adoption Delivers Accelerated Impact Since launching the platform, transitioning operations and training core teams with the support of IBM iX, SSGA has realized significant savings. Enabled by the Adobe Experience Cloud suite of applications, SSGA is now making more data-driven decisions, and can easily view how customers are interacting with their content, unveiling what information is most valuable to clients. Nearly 150 websites have been launched since the transformation, delivering a more consistent global experience in 22+ countries in more than ten languages, serving the needs of institutional users (wealth managers), intermediaries (brokers), ETF retailers and individuals. SSGA has also seen a 3.6X improvement in content accessibility with integration services through Akamai, as well as improved customer satisfaction. Explore more at ibmix.com
S TAT E S T R E E T G L O B A L A D V I S O R S
State Street Global Advisors: High Tech Automation vs. Old School Relationships CLICK TO WATCH
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progress in this area across our sales,
Lali. “We are also working with several
marketing and digital touch points. Our
automation solutions at both a deep
next steps are to look at our legacy
infrastructure level as well as at the
systems and understand which we
user level. Additionally, we are using
need for our operations and which we
automation technology to automate
need to build out.”
workflows, as well as harnessing cloud
To further its digitalisation journey,
technology to streamline our opera-
State Street Global Advisors is cur-
tions allowing us to move faster within
rently harnessing artificial intelligence
the industry.”
(AI), advanced analytics, automation
When it comes to data management,
and cloud. “Within our broader cor-
Lali says the company relies “ heavily
poration we have a data science team
on having a core data infrastructure
where we are currently working on a
to provide our services as custodians
joint advanced analytics project,” says
of over 10% of the world’s assets.
AUGUST 2020
E X E C U T I V E P R OF IL E :
“ WE ARE INNOVATORS, WE ARE LEADERS AND WE ARE COLLABORATORS” — Jetinder Lali, Chief Digital Officer, State Street Global Advisors
Understandably, cybersecurity is incredibly important to us. We have a very robust infrastructure in place and a dedicated team to manage any threats. We are also continuously looking at technology from new providers such as Adobe, where we are starting to look at their cybersecurity services. In addition to Adobe, we currently use Akamai across the organisation.” With digital transformation comes disruption for any organisation,
Jetinder Lali Title: Chief Digital Officer Location: London, UK Jet Lali is the first Chief Digital Officer at State Street Global Advisors, which is one of the world’s leading Asset Management firms, with $2.7 trillion in assets under management. Jet has previously held similar leadership roles in both management consulting and industry including companies such as JPMorgan, Barclays Global Investors, BlackRock and UBS. He has over 20 years of experience in building and advising on market leading digital strategies and capabilities within financial services across all major financial markets, with experience of both B2B and B2C business models.
Lali highlights that, at State Street Global Advisors, the company splits b u s in e s s c hie f. e u
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“ ACROSS OUR ORGANISATION WE DEFINED OUR OPERATIONS AND OUR DIGITAL STRATEGY VERY EARLY ON WITH A FOUR-YEAR ROAD MAP IN MIND” — Jetinder Lali, Chief Digital Officer, State Street Global Advisors
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S TAT E S T R E E T G L O B A L A D V I S O R S
its change management strategy into three key areas: people, process and technology. “Across our organisation, we defined our operations and our digital strategy very early on with a four-year road map in mind. We defined what capabilities we wanted to retain and where we had gaps, as well as the solutions to fill the gaps and potential partners such as IBM, which was very helpful in the simplification and rebuild of our web stack. When it comes to the processes, over the years they have 422
organically grown across our regions resulting in inconsistencies. So, like our technology, we looked to standardise our governance around data, processes and how we build solutions. Finally, in terms of people, we have several hundred working across the digital aspect of the organisation, but a lot of the technology we decided to use was new. As a result we spent a lot of time training our people across the world. Last year alone we did 4,000 hours of training as part of our partnership with Adobe, which we are looking to exceed this year.� Lali also highlights the importance of maintaining communication as part of a change management strategy. AUGUST 2020
“Everybody wants change, but everyone hates having to change. Therefore, we spend a lot of time communicating and training people on the technology we are using to give people a better understanding of what is possible.” Reflecting on State Street Global Advisors, Lali believes that the company’s biggest strengths are its ability to provide great partnerships for its customers, not just for its products but for its relationships it has across the industry, as well as its collaborative and innovative mindset, to drive the industry forward. “We’ve had many successes over the years, I would say that our biggest successes are our years of operation – over 120 years – as well as being the third largest asset manager in the world, inventing the first US listed ETF, building the first frontto-back platform for the industry and our leadership within environmental and social governance (ESG).”
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Monedo: the future of digital lending
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WRITTEN BY
LEILA HAWKINS PRODUCED BY
GLEN WHITE
AUGUST 2020
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MONEDO
Konstantinos Papakonstantinou, Chief Data Officer at Monedo, explains how data analytics and machine learning are transforming money lending
K
onstantinos Papakonstantinou remembers a time when the use of AI was barely spoken about in the financial sector.
“A few years back it was very hard to go to a conference and hear professionals from different organisations talk about leveraging alternative 426
data sources and machine learning to underwrite customers,” he says. “Now we see many are going down that path, and there’s a real shift towards automation based on machine learning and alternative data.” For online lending provider Monedo, data science, machine learning, artificial and decision intelligence (AI and DI) have been at the heart of the business since it was founded in 2012. Compared to traditional lending banks that verify income based on tax declarations, payslips and information provided by credit bureaus, Monedo acquires data from as many different data sources as possible, which translates into thousands of attributes that describe the customer, and which can then be fed into its machine learning model.
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MONEDO
“ There’s a real shift towards automation based on machine learning and alternative data” — Konstantinos Papakonstantinou, Chief Data Officer, Monedo
The company’s main source of data is Kontomatik, an API that enables financial institutions to verify customers’ identities and access their banking activity. Monedo is also in the process of integrating Kontomatik’s scoring service, which is currently done in-house. Indeed, as the organisation has grown, it has begun to outsource technology to third parties. Dr Papakonstantinou explains that
Dr Papakonstantinou explains: “If you 428
this is a typical process for startups
have raw transaction data, enhanced
as they grow into scale-ups. “Startups
with labels for the different categories
tend to build everything in-house
of transactions, and transformed into
because integrating third parties is just
different features that accurately
too expensive, and because a smaller
describe the financial profile of the user,
team is more agile and has the capac-
you can underwrite more efficiently and
ity and the passion to do this. As you
achieve a much better performance
mature, one of the things you realise
than the banks that underwrite with
is that you need to have valuable part-
traditional methods.”
nerships and strategic alliances; you
AUGUST 2020
Monedo’s data sources CLICK TO WATCH
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2:18
429 should refrain from building everything
worked closely together to develop the
in-house. You really need to leverage
functionality that Monedo needs. “It’s
the existing solutions that are out there.
a balance, I think third party compo-
“It’s a journey we also went through,”
nents certainly find their place in every
he continues. “We had a tendency
organisation that utilises a sophisticated
to build everything in-house, until
architecture for their products,” says
recently we moved to a new cloud-
Dr. Papakonstantinou.
based architecture where we replaced
When he first joined the organi-
all sorts of components with third
sation as a senior data scientist in
party components.”
2014, it was still a relatively young
A key example is Monedo’s loan
company, known as Kreditech. The
management and servicing platform
last two years has seen it undergo
built by Mambu, which provides
a strategy refocus and rebrand as
cloud solutions for banks and lend-
Monedo, with the appointment of
ing businesses. The two companies
Dr Papakonstantinou as Chief Data b u s in e s s c hie f. e u
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Officer to lead on data analysis and
solutions and add value for different
apply machine learning to automate
areas of the organisation,” he says.
processes and optimise decisions.
“As early as 6 months after I joined,
“We always wanted to expand the
I was promoted to a management posi-
data science use cases, to build more
tion and formed a multifunction team
E X E C U T I V E P R OF IL E :
Konstantinos Papakonstantinou Title: Chief Data Officer
Company: Monedo Holding GmbH
Industry: Financial Services Location: Germany Konstantinos Papakonstantinou is Monedo’s Chief Data Officer with over 12 years of experience as an individual contributor and a leader. His expertise lies in the field of data science and its applications in operations management, credit risk management, product personalization, conversion optimization, customer acquisition and retention. Prior to joining Kreditech’s data science team in Germany, Konstantinos studied and worked in educational institutes and high-tech organizations in multiple geographies. A passionate advocate of decision intelligence, in his current role in Monedo, Konstantinos is focusing on extracting value from data and unlocking the potential of machine learning in order to automate processes and optimize decisions. Konstantinos holds a MSc in Electrical Engineering from the University of Southern California and a PhD in Statistical Signal Processing from Telecom ParisTech. b u s in e s s c hie f. e u
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MONEDO
“ We’re constantly looking for new data, but also how to leverage to a greater extent the data we already have in our possession, while at the same time building a framework for data governance” — Konstantinos Papakonstantinou, Chief Data Officer, Monedo
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Monedo’s relationship with Stakeholders CLICK TO WATCH
AUGUST 2020
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2:18
with data scientists, data warehouse engineers and business analysts, in order to start tackling product and marketing analytics.” The company found that during a period of large growth, product and marketing are obvious areas that could benefit from data science, and so Dr Papakonstantinou and his team looked at ways of optimising conversion for its products and increasing the marketing return on investment (ROI). From there the team focused on other areas beyond underwriting, like customer relationship management (CRM) and collections – and then also transformed every process within underwriting, like pricing and affordability, the process of estimating how much customers can afford to repay each month. Having a clear data strategy is crucial for an organisation as data hungry as Monedo. “We’re constantly looking for new data, but also for new ways to leverage, to a greater extent, the data we already have in our possession, while at the same time building a framework for data governance. As you grow from a startup and you b u s in e s s c hie f. e u
433
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“ We wanted to expand, to build more solutions and start adding value for different areas of the organisation” — Konstantinos Papakonstantinou, Chief Data Officer, Monedo
and enabling as many stakeholders as possible to use it, is a key to maximise its value.” Monedo is undoubtedly a fastgrowing company. “The more time you spend with a growing organisation like Monedo, the more you also grow with it,” Dr Papakonstantinou says. “Strategies change, priorities change, resources change and you need to
scale up this is an important aspect
be able to adapt to different situations.”
you need to take into account – you
Adaptability has also been important
shouldn’t only care about value crea-
when it comes to managing his team.
tion, but also about value preservation.
“There are very smart, highly quali-
So, having clean good quality data
fied, strongly opinionated managers
Monedo’s View on the change of data & AI CLICK TO WATCH
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1:40
b u s in e s s c hie f. e u
435
MONEDO
2012
Year founded
1mn+ Customers worldwide
350+ Number of employees
436
in the data space. It’s tantamount to
done on ensuring algorithmic fairness
managing a think tank. Everybody has
and removing any algorithmic bias.
their own opinion because they’re very
Moreover, a lot of publications and
good at what they do, and despite the
discussions at conferences and other
frequent healthy conflicts, you have to
events are looking at the impact of ML
make sure you reach a consensus as
and AI in society. I think that five years
much as possible.”
from now, we probably won’t be talk-
Looking ahead, he sees two main challenges for ML and AI: ethical concerns and challenges with wide-
ing about these challenges as they will have been resolved.” While many people are concerned
spread adoption. However, ultimately,
that AI may lead to a loss of jobs,
he strongly believes these will be
Dr Papakonstantinou believes it will
solved. “A lot of work is already being
actually create new opportunities.
AUGUST 2020
437
“We have the analogy of the Industrial
some positions will be lost, a lot more
Revolution. People were initially very
will be created.
sceptical that they would lose their
“More and more people will start
jobs to machines in factories, and
realising that adopting machine learn-
indeed many were replaced, but then
ing and AI in different areas adds value,
people learned how to work with those
and we’ll see that cultural change
machines and more positions were
within more organisations, and across
created than were lost. More positions
more industries.”
will be automated by algorithms but that doesn’t mean we’ll see unemployment by adopting machine learning and AI. We’ll optimise and automate different business processes, so while b u s in e s s c hie f. e u
438
Moneyfarm: meeting customer needs with innovative technology WRITTEN BY
GEORGIA WILSON PRODUCED BY
JUSTIN BRAND
AUGUST 2020
439
b u s in e s s c hie f. e u
M O N E Y FA R M
Emanuele Blanco, Chief Technology Officer at Moneyfarm, discusses the company’s journey, technology trends in the industry and the impact of COVID-19
S
tarting its journey in Italy in 2011 as an investment business, Moneyfarm was created to help people make better decisions
with their money. “I officially joined Moneyfarm three years ago,” says Emanuele Blanco, Chief 440
Technology Officer at the business “At Moneyfarm we really think about our customers and their needs. In the early days we just provided investment advice, but now we really want to become a partner for our customers and a solution for managing wealth. Our goal is to really help our customers manage their wealth through every phase of their lives. I believe that what makes us different from our competitors is the human element of our operations. For us, our investment advisors are a key part of Moneyfarm – of course we have a site in which you can manage your investments online – but our human workforce provides a different level of support to our customers. So, I think what really differentiates us from our competitors is the human touch that we put in managing our customer and the level of expertise we provide to ensure that we are AUGUST 2020
441
Founders Giovanni Dapra and Paolo Galvani
b u s in e s s c hie f. e u
M O N E Y FA R M
“ At Moneyfarm we really think about our customers and their needs” — Emanuele Blanco, Chief Technology Officer, Moneyfarm
fulfilling our mission to educate people on how to better manage their wealth.” Over the past 10 years as the world has become driven by digital innovation, Blanco highlights that “technology has started to play a more important role in areas that were not really seen as too much of a focus before, such as user experience or mobile buyers which are definitely more prominent now. I would say that definitely over the past 10 years I’ve seen lots of companies go mobile first, as while people
442
may still use a computer nine to five at work, the majority of the population own a smartphone and in their free time will use their phones or tablets instead of a computer. Back in 2010 it was really web focused, but now it’s mobile, which is one of the biggest changes that I’ve seen. For this reason, we’re really focusing our efforts on creating a mobile-first experience that our customers can use.” From a process standpoint Blanco has seen Moneyfarm evolve alongside the industry to have “the ability to implement continuous delivery of products, making sure that we can gather and track changes, as well as experiment for our AUGUST 2020
Embark on a journey with Moneyfarm CLICK TO WATCH
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1:13
443 customer to build the products they
products we need to go to market fast,
need at a quicker pace to stay ahead of
which is why we are leveraging the
the market.” Other trends that Blanco
features of technology as well as modi-
highlights within the industry include
fying them and experimenting with split
blockchain and cryptocurrencies, how-
testing. It’s tempting to go and do some-
ever this isn’t something Moneyfarm is
thing big, but what we really want is to
currently doing.
put something in front of our customer.
When it comes to the company’s
So we try everything we can to make
innovation strategy, Moneyfarm
sure that we can get feedback from our
acknowledges the importance of
users and from our customers, utilising
having a great product. “We think our
this information to make the right deci-
product is one of the best around. To
sion. For us, technology is an enabler
achieve this we have a very talented
that allows us to serve our mission in a
pool of people that drive experimenta-
more efficient way, taking our custom-
tion. When it comes to innovating new
ers closer to our goal of managing their b u s in e s s c hie f. e u
M O N E Y FA R M
444
wealth in a hassle free method. So we
us and we integrate this with our CRM
run a lot of experiments, we have proof
system. This is something that we
of concepts and we make sure that we
launched very recently and results are
keep an eye on trends and technologies
promising so far. In addition to machine
to pick up the ones that are right for us
learning we are also doing a lot with
and have widespread adoption within
our data. We have around 40,000
the company.�
active customers which are invested
Currently, Moneyfarm has some
in our platform and we use our data
applications of machine learning,
warehousing to make sure that our
which Blanco says the company uses
customer advisors have access to the
to predict customer behaviour. We
relevant data in their dashboard so
have built our predictive model to
there is quite a lot of investment from
understand what kind of customers
that perspective. Though we are not
are more likely to invest money with
doing much with artificial intelligence
AUGUST 2020
E X E C U T I V E P R OF IL E :
Emanuele Blanco Title: Chief Technology Officer Location: Surrey, UK Emanuele Blanco is the Chief Technology Officer at Moneyfarm, the leading pan-European digital wealth manager. Emanuele spent the past 10 years of his career working with businesses across sectors such as government, finance, and e-commerce, helping them to deliver value to their customers via at the moment, it’s something that we always have an eye on and we are looking for opportunities whether we can leverage deep learning techniques in order to help our business.” An area that Moneyfarm is also currently looking into is the use of an API
modern technology practices. He joined Moneyfarm as Lead Software Engineer in 2017, before being appointed CTO in August 2019.
suite and the possibility of connecting to its platform by a set of APIs. This can then be used by multiple partners, allowing them to integrate with Moneyfarm’s platform. “Another area we have recently looked into is switching from in-house solutions to software b u s in e s s c hie f. e u
445
“ Financial markets were particularly hit by the crisis and this resulted in a higher level of load for us because people are concerned and want to know what is happening with their investment” — Emanuele Blanco, Chief Technology Officer, Moneyfarm
could do this ourselves or not, as well as whether we want to if it will be detrimental to our customers and whether we’d rather be spending the money doing something for our customers.” As a result, Blanco believes it important to have strategic partnerships. “Our success is also their success and vice versa,” he says. “So, when we find the partners that are for us in the long term, of course it’s a mutually beneficial relationship. I think it’s very important to establish a good relationship with a strategic partner because they are experts in their field and are helping your company to be successful.” Over the years Moneyfarm has worked with several key partners including Natterbox for its communication system, AWS for its cloud services and
as a service (SaaS) solutions,” says
solutions, Auth0 for its identity man-
Blanco. “I think that once you start to
agement and Tableau.
grow – especially a mid-sized company
Other technologies Blanco sees
like us – it becomes difficult to develop
Moneyfarm consider in the future
the right tools as the requirements
include, Blockchain technology, “there
increase. But we are not here to run the
are a lot of things we can do with
platform orchestration system. We’re
Blockchain in order to make sure that
here to help our customers, and so I
the data we use can’t be tampered with,
think, you get to a point in which we
currently we are having discussion as
have to make a call as to whether we
to the best use cases for it.” b u s in e s s c hie f. e u
447
M O N E Y FA R M
Chief Investment Officer Richard Flax speaking at Bloomberg event on the future of ETFs
448
AUGUST 2020
THE IMPACT OF COVID-19 “Of course the situation has been a bit of a roller coaster,” says Blanco. “The financial markets were particularly hit by the crisis and this resulted in a higher level of load for us because people are concerned and want to know what is happening with their investment. We’ve seen a huge spike on our platform but we have actually handled the load pretty well. So from that side we were able to serve our customers without any interruptions, aside from the spike in activities, but now the situation is a bit more settled. I am very
“ We think our product is one of the best products around. To achieve this we have a very talented pool of people that drive experimentation” — Emanuele Blanco, Chief Technology Officer, Moneyfarm
b u s in e s s c hie f. e u
449
M O N E Y FA R M
2011
Year founded
£2.2mn Revenue
140
Number of employees 450
“ You can’t expect people to go to the bank branch anymore to meet their financial advisor. So having a solid digital presence is going to be key” — Emanuele Blanco, Chief Technology Officer, Moneyfarm
very proud of how we have handled this situation effectively. At Moneyfarm a lot of our departments were already used to working remotely as we are all quite distributed so switching to being fully remote has been quite smooth. Of course it’s been a challenge for some parts of the organisation, but I think we’ve worked really well. But I believe that this will be an emerging challenge for industries as the world becomes more digital and while this is a challenge it will also provide huge opportunity.”
AUGUST 2020
451
When it comes to technological inno-
to be about making sure you can put
vation as a result of the virus, Blanco
the product in front of your customer in
believes that remote working is the
a digital way. You can’t expect people
biggest topic. All the tools that allow
to go to the bank branch anymore to
you to be more productive in terms of
meet their financial advisor. So having a
working outside of the office such as
solid digital presence is going to be key.�
Zoom will see huge growth. “For example, since the lockdown Zoom has gone from 10 million people to 300 million people, showing a lot of interest in all these remote productivity tools. I also think that in terms of how the industry has changed, I think the future is going b u s in e s s c hie f. e u
452
A DIGITALLY DISRUPTIVE ORGANISATION WRITTEN BY
GEORGIA WILSON PRODUCED BY
SHIRIN SADR
AUGUST 2020
453
b u s in e s s c hie f. e u
MASTERCARD
Mohammed Kamal, Senior Vice President, O&T, at Mastercard, on the company’s unique operations, digital transformation, technology trends and its initiatives to combat COVID-19
W
hen it comes to the operations at Mastercard, Mohammed Kamal, Senior Vice President, O&T, reflects
on the history of the company. “Just looking at Mastercard’s payment network, it has a unique architecture with triple redundancy 454
built in, operating globally, peer to peer and with local AI decisioning. The way Mastercard and Mastercard’s network has been built over the years is different from some of our competitors, which I believe provides a quicker and higher quality of service for our customers. Beyond our historic payments network, I think Mastercard is in a position to disrupt itself. Where you typically associate Mastercard with credit card or debit card payments, being disruptive has taken us into areas such as account-based and bill payments, which have grown over the years. While we’ve been diversifying into services for some time, we’re also diversifying into multiple payment rails that you typically wouldn’t associate with Mastercard. For me this is one of AUGUST 2020
455
b u s in e s s c hie f. e u
MASTERCARD
“ Mastercard has very rigorous business continuity plans that are tested regularly so we are ready to respond when an unexpected crisis happens, such as COVID-19” — Mohammed Kamal, Senior Vice President, O&T, Mastercard
the big things that makes Mastercard unique compared to some of our competitors.” Kamal adds: “When I look at digital transformation and being disruptive, it is important to move from a
place where the digital and core businesses are not separate to be successful. The core
456
business itself has to evolve into being digital rather than adding a digital veneer and keeping the existing core processes in place.” This approach is something that Kamal sees as fundamental when digitally transforming business operations. “It’s visible when you look at a company, which ones have added digital as an afterthought, versus which companies actually reinvented themselves to be digitally native. Much of the time the result is a hybrid. Sometimes you’ll see competing products within an organisation, some that are digitally enabled but which obviously started off in more of AUGUST 2020
Inclusive access – Frictionless future of payments
CLICK TO WATCH
|
1:21
457 an analog form, and then you have
much more data-rich, so it typically
new products, built from the ground
goes hand in hand with more
up that are digitally native. I believe
advanced warehousing and analyt-
for companies to be successful, it’s
ics capabilities. In addition, digital
important to really reimagine what’s
tends to be exposed through web
possible without the confines and
and application programming inter-
design assumptions of the non-digital
faces (APIs), which require their own
legacy products. If you build new
sets of supporting infrastructure and
products from the ground up, I think it
security capabilities.
opens up new doors when it comes
When it comes to the application
to their flexibility and agility. There is,
of cloud, data and analytics and artifi-
however, a tremendous amount of
cial intelligence (AI), Kamal states
underlying infrastructure and plumb-
that “all are obviously important but
ing needed to successfully pull off a
for various reasons and applied
digital transformation. Digital is
across different industries. For our b u s in e s s c hie f. e u
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MASTERCARD
460
organisation, which accumulates
consumer banks - in a network.
large amounts of data, being able
These new, digitally native products,
to draw insights based on data is
one of their selling points is that they
extremely important and I would rank
enable a richer exchange of data
this the highest out of the three. A lot
than their analog counterparts
of our fraud engines and insight plat-
through ISO 20022 messaging
forms run on aggregated data which
standards. These standards provide
is invaluable. We’re also, however,
the capability to carry a lot more
enabling the exchange of data
information back and forth, driving
between participants in an ecosys-
value for parties in the ecosystem.
tem. Mastercard is very well
This exchange of data enriches the
positioned as a network where we
whole ecosystem, and provides for a
bring together different parties - mer-
more symbiotic relationship between
chants, billers, acquiring banks and
us and our partners.�
AUGUST 2020
Reflecting on the capabilities cloud
use cases, especially in the face of
technology can provide, Kamal
nationalism, where you may need to
explains that “you can gain tremen-
have something hosted in the cloud.
dous amounts of value. But first it is
For that reason, I have generally taken
important to determine the best use
a hybrid cloud approach when going
case for this technology. Mastercard,
down the path of cloud enabling solu-
for example, has a good footprint of
tions. The greatest value I see,
data centres around the world in dif-
however, is that the techniques
ferent regions. In some instances,
applied when using a hybrid-cloud
cloud makes sense and other times it
enabling platform generally make the
doesn’t, but the flexibility of cloud and
platform more scalable, agile and ven-
the ability to leverage an OPEX model
dor agnostic, which in itself is valuable
versus a CAPEX model provides scal-
whether actually deployed in a public
ability and flexibility. I think there are
cloud environment or not.
E X E C U T I V E P R OF IL E :
Mohammed Kamal Title: Senior Vice President, Consumer Applications Mohammed Kamal is a payments industry technologist with a passion for innovation and the Fintech space. He is currently serving as the COO of Consumer applications at Mastercard, leading a cross functional team with a mission of enabling new payment flows leveraging real-time payments (RTP). His responsibilities include technology and operations for retail payments (p2m), BillPay & p2p payment products. He is also responsible for corporate & commercial M&A integration within the Consumer Applications division. b u s in e s s c hie f. e u
461
MASTERCARD
Mastercard has been leveraging AI
462
manual enrolment process
for its fraud services for over 10 years.
can take a consumer half an
“We have very advanced fraud detec-
hour - if not longer – trying to
tion capabilities that we provide our
identify and link with the differ-
customers,” says Kamal. “One of the
ent billers they have a
techniques that I think is interesting
relationship with. An assistive AI
with AI is the use of assistive AI versus
solution can bring this time down
fully autonomous AI - or a mix of the
significantly, reducing friction for the
two, depending on the use case.
customer, yet keeping them in control
There’s still tremendous value in hav-
of their personal and financial data.”
ing human intervention and making
Another technology trend Kamal
sure a human is kept in the decision
has seen emerge is the use of open
making loop, but drastically empow-
banking, “we’ve seen a huge amount
ered as a result of the AI. For example,
of action in this space. I use the term
fraud detection is sometimes one of
‘open banking’ loosely because it dif-
those use cases where selectively
fers in different regions of the world,
involving the user in the decision mak-
but it’s the idea that the bank is open-
ing process can provide for a better,
ing their ‘walled garden’ in a con-
more confidence-inspiring user expe-
trolled and secure way so that a cus-
rience. But other use cases could be
tomer can use the data for their
in the space of bill payments, where a
benefit with other products.” In some
S T R AT E GI C PART N ERSHI PS
“When it comes to our partners such as Fulcrum Digital Inc., a critical hallmark that we look for in a collaborator is f lexibility and agility. When collaborating with others we are looking for long term partners that we can share both successes and failures with and create future opportunities. We look for the type of collaborative partners that will share in the risks and the rewards and I think being able to share in that makes for a better relationship in the long run.”
AUGUST 2020
“ When I look at digital transformation cases the banks themselves are and being disruptive, it is important building new prodto move from a place where the ucts based on this digital and core businesses are not Open banking paradigm. The Consumer separate to be successful” — Mohammed Kamal, Senior Vice President, O&T, Mastercard
Application division here at Mastercard is helping our partners do just that. More generally, in the industry, I am seeing an increase in partnerships and collaboration between banks, which are well positioned with bank grade security and safety compliance built-in, with fintechs that are providing customers experiences the banks have not been able to provide in the past. At Mastercard, we want to support all members of the open banking ecosystem. We’re focused on delivering solutions that will enable these experiences, whether that is delivered just by a bank, just by a fintech, or in partnership.” With many organisations around the world being affected by the impact of COVID-19, Kamal explains that b u s in e s s c hie f. e u
463
MASTERCARD
1966
Year founded
$12.5bn+ Revenue in US dollars (2017)
16,000 Number of employees
“ It’s visible when you look at a company, which ones have added digital as an afterthought, versus which companies actually reinventing themselves to be digitally native” — Mohammed Kamal, Senior Vice President, O&T, Mastercard AUGUST 2020
“Mastercard has very rigorous business continuity plans that are tested regularly so we are ready to respond when an unexpected crisis happens, such as COVID-19. As you would expect, the teams are executing our operations very well. We work very closely with our customers as well as having our
provide to help them?” Since the outbreak Mastercard has been implementing a variety of initiatives in order to help its customers navigate the impact of the pandemic. When it comes to digital transformation and adopting the current trends within the technology space, Kamal highlights the importance of having the right products and services to be able to capture the opportunities innovation provides. “I think that’s the key message, it’s not always easy to predict what the market will need in one go, but much of the time we are investing in flexible underlying product infrastructure, while the use cases themselves develop more organically. I think it’s important to build with flexibility so that, while you may build a set of technology or products for a particular own VCP processes to ensure that as
use case, or you have a business case
our customers encounter challenges
in mind, you also need to be able to
within their business we are able to
pivot the technology for different use
accommodate them. Our continuity
cases if the need should arise.”
plan not only looks at how our company could be impacted but whether our customers could be impacted, what policy changes we could make, what rule changes? And what can we b u s in e s s c hie f. e u
465
Global supply chain transformation WRITTEN BY
LEILA HAWKINS PRODUCED BY
466
GLEN WHITE
AUGUST 2020
467
b u s in e s s c hie f. e u
468
Hicham Nehme, Head of Supply Chain at Vodafone Qatar, on the complexities of the supply chain transformation and overcoming unexpected challenges
W
ith vast swathes of the population working remotely and living under lockdown
conditions as a result of the global COVID-19 pandemic, the world has never been so dependent on telecommunications. Vodafone is playing a major role in keeping people and organisations connected. To do so, it has relied on a robust strategy that enabled it to overcome significant challenges to its supply chain.
AUGUST 2020
Hicham Nehme, A. Head of Supply Chain at Vodafone Qatar, on mitigating supply chain risk under COVID-19 CLICK TO WATCH
|
2:51
469
Hicham Nehme, A, Head of Supply
This process involved recognising
Chain, explains that the Vodafone sup-
the difficulties that employees may
ply chain has been very much proactive
be experiencing in adapting to work
rather than reactive, beginning a process
from home; ensuring customers are
of stringent crisis planning as early as
getting the best possible service
December. First, the company identified
now that telecommunications are so
four pillars for supply chain management
essential to daily life; understand-
(SCM) resilience: employees, custom-
ing its supplier profiles so that it is
ers, suppliers, and emergency planning.
prepared for potential problems with
“After identifying these,” says Nehme,
sourcing and, finally, building a com-
“we had a much greater understanding
plete end-to-end strategy based on
of how to manage the crisis.”
these points.The latter would enable b u s in e s s c hie f. e u
A gateway to innovate, a channel to communicate
Hayat Communications Al Owinah Tower, 9th floor Old Salata, Corniche Doha - Qatar P.O. Box: 30219 Tel: +974 4451 4979 Fax: +974 4451 4978 qatar@hayatcomm.net
www.hayatcommunications.com
Hayat Communications Company KSCC (HCC) is a publicly listed company in the Kuwait Stock Exchange focused on the communications industry. HCC is a service provider for the design, supply, build and management of all various types of fixed line and wireless networks. Namely, the mobile industry, fiber roll-out, security and surveillance, Enterprise, IT and low voltage system. HCC is considered a top tier partner in the communications sector across the Arabian Gulf specifically. Our vision to be the partner of choice as a major service provider of networks in communications and technology. Accommodating evolving communications through innovation, user-friendly solutions and our professional management team. Our services lines are catered mainly in: - IT &Telecommunications infrastructures - IOT - ELV/ AV systems - Automation solutions - Smart offices, homes, parking‌etc - Energy solutions
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V O D A F O N E Q ATA R
Vodafone Qatar to move from crisis
six or more months of supply deliv-
mode to business as usual.
ered by March. It planned ahead in
SCM coordinated with each depart-
case of shortages that would lead to
ment on the local level, and with VPC
price increases, and signed three-year
on the group level, to determine what
contracts with all its suppliers.
the biggest problems would be and
“When the pandemic started, the
what actions should be taken to solve
first question was how can we import
these, both in the short and long term.
from China, and we generated tens of
SCM strategy has revolved around
scenarios looking at how we could do
being prepared – and anticipating
this,” notes Nehme. “Now the whole
scenarios rather than dealing with the
world is locked, and the situation has
fallout. For example, in January it bulk
changed to: ‘how can we import from
ordered stock to ensure it would have
the rest of the world?” It’s important
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Hicham Nehme, A. Head of Supply Chain at Vodafone Qatar, discusses the importance of leadership in supply chain CLICK TO WATCH
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“ Digital tools are not a privilege anymore” — Hicham Nehme A. Head of Supply Chain at Vodafone Qatar
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“ We’re now using data analysis more than ever before to forecast” — Hicham Nehme A. Head of Supply Chain at Vodafone Qatar
to learn from previous crises and manage change using new technology.” As a result the company has started using entirely virtual marketplaces such as Amazon. Another key point is not being heavily reliant on just one territory, such as China. “I believe China will face a lot of problems in the coming years because of what people believe to be the cause of the pandemic. We don’t yet know how big companies that operate in China like Apple will react, but we need to prepare so the
E X E C U T I V E P R OF IL E :
Hicham Nehme Title: A. Head of Supply Chain
Company: Vodafone Qatar
Industry: Telecommunications Location: Qatar Hicham Nehme is an experienced procurement professional. Having worked for 18 years in procurement and supply across different industries, Hicham is responsible for oversight of the procurement operations, strategic sourcing and digital transformation in supply chain. Hicham was instrumental in developing procurement policies and procedures and implementing procurement strategies, managing projects in the MENA Region, Europe and US. Hicham is CIPS and CPPM Certified, with a BA in Business Administration Systems. He is a father of three girls. b u s in e s s c hie f. e u
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V O D A F O N E Q ATA R
supply chain remains continuous and
Skype and Zoom. We know the whole
sustainable,” Nehme explains. “There
world will change after this, and
are a lot of different opinions out
the most important aspect is digital
there, but I think business needs to
transformation, now a main part
be spread across many countries, not
of any company.
centralised in one area.” The COVID-19 pandemic has high-
476
“Every organisation must have at least a vision for digital transformation,”
lighted how essential digitalisation
Nehme adds. “For the supply chain
is. “Digital tools are not a privilege
in particular, digitising operations can
anymore,” Nehme explains. “They’re
improve speed and reliability, from
being used all over the world during
how fast products can be manufac-
this crisis. We’ve moved from attend-
tured to how promptly order fulfilment
ing school to e-learning, and doctors
and delivery to the final destination
are giving medical advice through
can be made. But to implement digital
AUGUST 2020
Hicham Nehme, A. Head of Supply Chain at Vodafone Qatar, on managing the COVID-19 crisis CLICK TO WATCH
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V O D A F O N E Q ATA R
Hicham Nehme, A. Head of Supply Chain at Vodafone Qatar, explains how the company builds and sustains partnerships CLICK TO WATCH
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478 transformation well it’s also crucial
Technology aside, he shares that
to pay attention to the organisation’s
strong partnerships are also essen-
structure and how this will change.
tial to success. “If companies act
That’s why any successful digital
like solo endeavours they will fail.
transformation starts from the top,
Organisations depend on their sur-
from the leaders, and works down to
roundings and their suppliers to build
the employees.”
technology and share knowledge.”
While data analysis is becoming
Considering those suppliers, Nehme
increasingly useful, it will play an even
explains that the crisis has led to a
more important role in the future, along
redefining of what a partnership can
with blockchain and AI. “We’re now using
be. “It’s led us to reevaluate our suppli-
data analysis more than ever before to
ers based on how they react during the
forecast,” Nehme explains. “This is ena-
crisis, and whether they were available
bling organisations to look at potential
when we needed them,” he affirms.
impacts on projects and profitability.”
“How you react towards a crisis and
AUGUST 2020
how you support your organisation
Nehme has counted for many pro-
when it needs you, is the most impor-
jects. In the same industry, HATCOM
tant part of the supply chain.�
Telecommunications is another stra-
Among the company’s suppliers and partners are those in the telecommunications industry such as Hayat Communications, on which
tegic partner with which Nehme has worked across many projects. Looking ahead, Nehme envisages the independence of supply chains:
479
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V O D A F O N E Q ATA R
AUGUST 2020
“For countries like the US or Europe, the first thing that they face is a lack of supply chain planning. They have
“ How you react towards a crisis and how you support your organisation when it needs you, is the most important part of the supply chain”
the capability but they don’t have the tools or the materials, so they’ll have to find new ways to bring in new materials and new products”, he says. “We’re going to see supply chain organisations working separately and becoming businesses. The most important thing for any country right
— Hicham Nehme A. Head of Supply Chain at Vodafone Qatar
now is securing food, medication and medical equipment for its people. They don’t need someone sitting behind a desk telling them their balance sheet has dropped. The most important thing now is how to survive, and to survive you need a supply chain.”
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THE SCIENCE OF PROCUREMENT AT SCANDINAVIAN TOBACCO GROUP WRITTEN BY
SEAN GALEA-PACE
PRODUCED BY
CHARLOTTE CLARKE
AUGUST 2020
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S C A N D I N AV I A N T O B A C C O G R O U P
HOW SCANDINAVIAN TOBACCO GROUP’S CULTURAL TRANSFORMATION HAS REIMAGINED AND OPTIMISED THE PROCUREMENT PROCESS
484
H
eadquartered in Copenhagen, Denmark, Scandinavian Tobacco Group (STG) has enjoyed a smooth and consistent level of
success over the years. Originally founded in 1961 as Skandinavisk Tobakskompagni A/S, the company initially housed a full-spectrum of tobacco products, but eventually settled on retaining its cigar, pipe and rolling tobacco businesses after restructuring itself in 2008. Now an internationally recognised company with 6,900 employees and known for producing high-quality, world-renowned products popular in both the US and Europe, STG has pursued a course aimed at maintaining shareholder value by becoming an indisputable leader in the tobacco industry. AUGUST 2020
485
b u s in e s s c hie f. e u
OUR BUSINESS IS HOW WE DO BUSINESS Quality Importers Trading Co., Inc. is a B2B product innovator and distributor for some of the industry’s most iconic international brands. QI also represents a global network of manufacturers specializing in the areas of wooden-ware, plastic injection molding, metal stamping and product packaging. .
OUR MISSION IS TO UNLOCK OUR CUSTOMER’S BUSINESS POTENTIAL BUILD ON A SOLID FOUNDATION During its twenty-plus years of business, while enjoying continuous annual growth, Quality Importers Trading Co., has developed an internal infrastructure and network of global partnerships that has ensured that its customers succeed in calm waters, and prosper even more in times of international economic and political storms, when most cannot. Keeping production and deliveries on schedule helps companies maintain healthy inventory levels that are positioned for growth. External threats to the supply chain caused by economic uncertainty, tariffs and other influences can only be mitigated with sound organization, time-proven processes and experience. Keeping product flowing from the supply chain onto the distribution channels has proven to be the difference between success and failure, often with no third option. KEYS TO WEATHERING THE STORM THROUGH STRATEGIC NETWORKS • Closely monitor product production and deliveries to ensure adhesion to schedules • Tight control and visibility on costs • Minimize external threats by managing economic uncertainty and tariffs • Build inventory levels that are positioned for growth while preserving cash flow • Execute with a strong sense of urgency and accuracy.
design distribution
sourcing
PRODUCT LAUNCH
sampling
packaging branding
QI’s balanced and symbiotic integration: from concept to creation.
INVEST IN TIMES OF UNCERTAINTY Making sound business decisions a habit and part of the culture place the company in a position to invest when and where many others may steer away. This strategy has paid off and Quality Importers has taken the initiative to further improve its products and services with a large investment in cloudbased systems with ERP and other resource management tools that will help the company unleash even more of its customers’ potential. Let’s get started on your future. Contact us now at sales@qualityimporters.com.
1 (954) 602-5637 // www.qualityimporters.com // Instragram: @QualityImporters // Facebook: www.facebook/QITradingCo Twitter: @QITradingCo
S C A N D I N AV I A N T O B A C C O G R O U P
STG has an innovative and consumer-
“ IN ORDER FOR STG TO ACHIEVE ITS GOALS, A STRONG COLLABORATION WITH STAKEHOLDERS AND VENDORS TO ENSURE THAT THEY SHARED A COMMON VISION, GOAL AND STRATEGY IS VITAL”
focused approach to its brand portfolio management that relies on a robust understanding of its consumers across markets and categories, as well as being committed to developing its brands, concepts and products for markets globally. The organisation’s strategy is focused on four main business priorities. Across categories and markets, these priorities help us create value from our recognised brands, extensive tobacco expertise, global scale, market footprint
488
and supply chain. When rethinking
AUGUST 2020
Scandinavian Tobacco Group: My Ignition: Iris CLICK TO WATCH
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489 procurement, the company defined six
STG shares a particularly strong rela-
main principles to ensure its ongoing
tionship with is Quality Importers (QI).
competitiveness: securing supply, main-
A Florida-based company specialising
taining business continuity, simplicity,
in cigar storage and packaging, QI pro-
improving margins, improving networks
vides first-class service to STG and is
and realising targets. By standardis-
considered one of STG’s most reliable
ing its processes in this way, STG was
and trusted partners.
able to increase the transparency of its
During the first quarter of 2020, STG
operations and better measure if it was
delivered net sales of DKK 1,791 mil-
adhering to its own goals.
lion, organic net sales growth of 5%.
In order for STG to achieve its goals,
The first quarter 2020 includes Agio
a strong collaboration with stakehold-
Cigars, which was acquired on January
ers and vendors to ensure that they
2, 2020. The quarter showcased posi-
share a common vision, goal and
tive organic growth in net sales across
strategy is vital. One such vendor that
all four commercial divisions with b u s in e s s c hie f. e u
S C A N D I N AV I A N T O B A C C O G R O U P
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491
“ SCANDINAVIAN TOBACCO GROUP ENTERED THE COVID-19 CRISIS FROM A POSITION OF STRENGTH, AND WE WILL REMAIN IN GOOD FINANCIAL HEALTH EVEN THOUGH WE EXPECT A NEGATIVE IMPACT FROM THE COVID-19 CRISIS ON OUR BUSINESS IN 2020”
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Scandinavian Tobacco Group: From Seed to Handmade Cigar: Harvesting CLICK TO WATCH
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high growth in Region Machine-Made
“ DURING THE FIRST QUARTER OF 2020, STG DELIVERED NET SALES OF DKK 1,791 MILLION, ORGANIC NET SALES GROWTH OF 5%”
Cigars of 5.2% and in Region Smoking Tobacco & Accessories of 11.6%. In a press release on the company’s website, Niels Frederiksen, CEO of Scandinavian Tobacco Group, commented: “In the middle of a unprecedented global pandemic with a high degree of volatility and uncertainty in most markets, we are able to present a solid result for the first three months of 2020 with net sales growth and a strong cash flow as well as we
AUGUST 2020
493
have revealed the plans for creating
a negative impact from the COVID-19
significant value with the integration
crisis on our business in 2020. To ensure
of Agio Cigars. During these uniquely
the continued strength of our underlying
challenging times, I have been encour-
business we have reinforced our empha-
aged by the resilience of our business
sis on costs and strengthened our focus
and by the dedication of our employ-
on cash and liquidity.”
ees in keeping our business running
With the goal of being the undisputed
and delivering on our promise to our
leader in a declining market, STG has
consumers and customers.
put itself in a position to remain a major
“Scandinavian Tobacco Group entered
force in cigars and tobacco and grow
the COVID-19 crisis from a position of
organically or through mergers and
strength, and we will remain in good
acquisitions. Through its “Fueling the
financial health even though we expect
Growth” campaign, an emphasis was b u s in e s s c hie f. e u
S C A N D I N AV I A N T O B A C C O G R O U P
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AUGUST 2020
put on gathering quality data from which decisions could be made. Fueling the Growth makes STG more agile by removing layers of management and there is now a maximum of seven between CEO and shop floor, when previously there could be up to 12. This will allow for messages across the organisation to be sped up and experts in the sector now take decisions and bring them to market much more efficiently. With over 200 brands in the company’s portfolio, most recently Royal Agio Cigars, a leading European cigar manufacturer, STG is in the enviable position of being able to retain its valued customers whilst also attracting new ones with its superior products. Of paramount importance to this vision is a rock-solid procurement process which seeks to engage stakeholders and partners and utilise the latest technology.
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