EMEA Magazine August 2020

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

Accenture | Cyber Resilience — Grow Confidently CLICK TO WATCH

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0:16

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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This means greater savings and shorter time to market.

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

busi ne ssch ief. eu

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

busi ne ssch ief. eu

TECHNOLOGY

AI & Manufacturing in Asia — Opportunities, Challenges and Solutions: Microsoft Asia CLICK TO WATCH

|

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.

92

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.

b u s in e s s c hie f. e u

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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.

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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.”

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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.”

b u s in e s s c hie f. e u

107

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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,

110

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.

AUGUST 2020

Together Greater Than Ever CLICK TO WATCH

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1:16

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b u s in e s s c hie f. e u

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

114

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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AUGUST 2020

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

119

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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3:05

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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

|

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

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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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155

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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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

b u s in e s s c hie f. e u

PA N A S O N I C

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

183

b u s in e s s c hie f. e u

PA N A S O N I C

“ 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

|

2:38

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

PA N A S O N I C

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

b u s in e s s c hie f. e u

PA N A S O N I C

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.”

b u s in e s s c hie f. e u

PA N A S O N I C

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

199

b u s in e s s c hie f. e u

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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201

b u s in e s s c hie f. e u

T- S Y S T E M S

“ 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

AUGUST 2020

T-Systems: Always the perfect fit for your success CLICK TO WATCH

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1:33

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.”

b u s in e s s c hie f. e u

207

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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T- S Y S T E M S

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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

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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

223

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.”

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230

Eliminating waste through recycling and technology WRITTEN BY

WILL GIRLING PRODUCED BY

GLEN WHITE

AUGUST 2020

231

b u s in e s s c hie f. e u

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

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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

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“ 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.

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251

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

“ 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

263

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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265

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

CONTACT US

+ 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

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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

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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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S O N A E FA S H I O N

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AUGUST 2020

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S O N A E FA S H I O N

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

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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

309

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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

HENKEL ADHESIVES

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

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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

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Year founded

€20bn+ Revenue in euros

52,000 Number of employees

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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

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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

Learn More

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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388

“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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KING ABDULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

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

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WORTEN

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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WORTEN

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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

AUGUST 2020

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.”

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‘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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S TAT E S T R E E T G L O B A L A D V I S O R S

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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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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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b u s in e s s c hie f. e u

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

Boost financial services with open banking Business around the world transforms their financial services with Kontomatik using data aggregation, online identity verification, fraud prevention and machine learning based risk management.

Learn more

www.kontomatik.com contact@kontomatik.com

Contact us

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

432

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

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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

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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

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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

472

AUGUST 2020

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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473

“ 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

475

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

|

1:40

477

b u s in e s s c hie f. e u

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

|

3:01

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

b u s in e s s c hie f. e u

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.”

b u s in e s s c hie f. e u

481

482

THE SCIENCE OF PROCUREMENT AT SCANDINAVIAN TOBACCO GROUP WRITTEN BY

SEAN GALEA-PACE

PRODUCED BY

CHARLOTTE CLARKE

AUGUST 2020

483

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

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.

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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.

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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

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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2:31

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

490

AUGUST 2020

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”

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

Scandinavian Tobacco Group: From Seed to Handmade Cigar: Harvesting CLICK TO WATCH

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0:52

492

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

494

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.

b u s in e s s c hie f. e u

495

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