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UNLOCKING THE POWER OF DATA

Transforming a telco giant

Connected experiences through digital transformation Group CIO Alain Brouhard on the bottling giant’s success with intelligent automation and its commitment to the customer

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FOREWORD

elcome to the June issue of

GoCompare all feature in this

the Europe edition of Business

month’s issue.

Chief Europe!

Business Chief also talks to

For this month’s cover feature, Alain

Hampshire Trust Bank, O2 Czech

Brouhard, Group CIO of the Coca-

Republic, SEG Automotive and Turkcell,

Cola Hellenic Bottling Company,

discussing digital and supply chain

reveals the firm’s successes

management transformations.

of the past year, and how it

This month’s City Focus

is digitally transforming

looks at the 2,000-year-

its operations. The com-

old city of Cologne, and

pany has focused on

how its tourism, manu-

accelerating and finetuning its functions to enable growth.

Alain Brouhard, Group CIO, Coca-Cola Hellenic Bottling Co.

Business Chief also talks to

facturing and logistics industries are powering the economy. Elsewhere in this issue,

EIT InnoEnergy’s Director of Innovation,

Business Chief discovers the top 10

Elena Bou, about what the company

largest companies based in Europe –

is doing to encourage innovation and

featuring BP, AB InBev and HSBC.

diversity within the energy industry. The firm was established to support

Enjoy the issue!

education, collaborative innovation

Sophie Chapman

and startup creation.

sophie.chapman@bizclikmedia.com

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CONTENTS

Coca-Cola Hellenic Bottling Company Driving the top line and connected experiences through digital transformation

12 34 PIONEERING CHANGE AND DIVERSITY IN THE ENERGY SECTOR

44 ALIBABA CLOUD NOT YOUR TYPICAL CLOUD COMPANY

What can tech businesses do to address the STEM skills shortage?

56 66 Why we must invest in todayâ€™s shared transportation to build the foundation of tomorrowâ€™s smart mobility

74 City Focus

TOP 10 Largest companies in Europe

CONTENTS

100

BKW AG O2 Czech Republic

132 Hampshire Trust Bank

118 Gocompare.com

146 DNB

166

194

SEG Automotive

Applus

180

208

Turkcell

Fidelis Hospitality

Coca-Cola Hellenic Bottling Company Driving the top line and connected experiences through digital transformation WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

LEWIS VAUGHAN

JUNE 2019

e uro pe .busi ne ssc hief. com

C O C A - C O L A H E L L E N I C B O T T L I N G C O M PA N Y

oca-Cola Hellenic Bottling Company (CCHBC), a leading global FMCG business and strategic partner to The Coca-Cola

Company across its 28 market group, has made great strides in its digital transformation journey since we sat down with the business in January 2018. “Two things that have happened over the past 12 to 18 months are acceleration and fine-tuning,” says Group CIO Alain Brouhard at CCHBC’s corporate 14

headquarters in Zug, Switzerland. A consummate professional with an active role at both Gartner and Singularity University, Brouhard has been leading CCHBC’s digital transformation as Group CIO for the past three years. The key advancements of the journey since we last spoke are encapsulated in the expanded deployment of its innovative smart cooler fleet as well as continual, data-driven revolutions of efficiency in both its internal operations and relationships with vendors and consumers. “Digital transformation, for us, is to drive the topline growth as well as the bottom-line through efficiency and cost leadership: one of the most critical elements of that is in connecting experiences between our customers, our consumers and our business developers.”

JUNE 2019

e uro pe .busi ne ssc hief. com

C O C A - C O L A H E L L E N I C B O T T L I N G C O M PA N Y

“

Digital transformation, for us, is to drive the top-line growth as well as the bottomline through efficiency and cost leadership

”

Alain Brouhard, Group CIO, Coca-Cola Hellenic Bottling Company

markets by the end of 2019. “Our coolers talk to the consumer,” says Brouhard. “If you have a third-party smartphone app, such as ShopFully in Italy with whom we’re now live, a push notification is sent to your phone when you pass close to one of the coolers.” Not only does the push notification alert the consumer to the fact a cooler is nearby, it can also provide exclusive offers to encourage them to make a purchase. “This is an example of proximity marketing, and it’s elevating the performance of our promotions to a significantly better level: we have a return rate of promotion of 7-10% compared to traditional returns of 2-3%,” says Brouhard. The impact that the coolers have

CONNECTING THE EXPERIENCE

through communicating directly with

The aforementioned smart coolers

potential consumers is augmented with

enable CCHBC to tick every box on

the data-driven efficiency they enable.

this agenda. The beacon-enhanced

“The cooler, just to make it clear, is not

coolers, which deliver push notifica-

a vending machine,” clarifies Brouhard.

tions to nearby consumers with special

“With a vending machine, you know

promotions, totalled around 120,000

exactly what has been bought and

in January 2018. That number has

you have a record of each purchase.

tripled in just over a year, and Brouhard

This device has an open door, and we

affirms that CCHBC will have deployed

don’t have a record of how many bever-

500,000 across its 28 operational

ages have been sold from it. With the

JUNE 2019

CLICK TO WATCH : ‘CCHBC – PARTNERS’ 17

beacons we have put in place we

to a high-performing one, and the im-

can track how often the door opens,

pact of that is around a 12% increase

and we know that around 80% of

in sales,” Brouhard enthuses.

door openings indicate a sale. We can therefore assess the performance of

DATA-DRIVEN EFFICIENCY

each cooler; by knowing the perfor-

Brouhard earmarks the company’s

mance, we can improve the location of

accelerated use of data-driven insights

the product so, if it is not performing

as another big step forward during the

in a particular location, we can move it

past year. “I believe the critical progress

to somewhere where it might be more

has been our focused and exponential

successful.” If a minor adjustment of

deployment of Big Data and Advanced

placement is unsuccessful, CCHBC

Analytics,” says Brouhard. The breadth

relocates the device entirely. “We move

of this advancement is significant, en-

the cooler from a low-performing store

compassing its segmented execution e uro pe .busi ne ssc hief. com

ABOUT OTE OTE Group is the largest technology company in Greece and a member of Deutsche Telekom AG. It offers the full range of telecommunications services: from fixed-line and mobile telephony, broadband services, to pay television and integrated ICT solutions. COSMOTE is the unified commercial brand for all the products and services of the Group and its key message is “a better world, for all”. Its mission is to bring technological capabilities to all, so that everyone can live and enjoy at the fullest all possibilities offered now, while also building on them for a better tomorrow. OTE Group invests heavily in New Generation Networks, creating infrastructure which will boost the Greek economy and create growth potential. It is the largest investor in new technologies and infrastructure in Greece, having invested over €2bn over the past six years. OTE Group implements a €2 bn. investment plan until 2022, to offer even higher speeds and wider coverage in fixed and mobile telephony. In the field of System Integration, OTE Group has developed diverse capabilities and constitutes a leading partner of choice for businesses seeking innovative solutions in the fields of Data Centers, Cloud, Information Security, Networking, Big Data and Internet of Things technologies. Leveraging strategic partnerships with IT Market Leaders and due to its large IT & Network workforce, OTE Group has delivered large scale and complex ICT projects offering managed services to customers in Europe.

WE EMPOWER. YOU LEAD Focusing on continuously developing innovative solutions and building strategic partnerships with global IT leaders, OTE Group stands out to be a trusted technology partner for large business customers. By modernizing its IT infrastructure, as well as maintaining operational and people excellence, OTE Group delivers and supports sophisticated tailor-made projects. The state-of-the-art services and solutions offered by OTE Group enable businesses dynamically to the new digital era and ensure their business continuity. The strategic partnership with Coca-Cola HBC acts as an accelerator of the company’s digital transformation journey through a robust technology strategy. Coca-Cola HBC’s roadmap to the digital edge started with the implementation of a new Data Center, one of the 3 largest Data Centers in the EMEA region. • Operational applications, such as ERP and CRM, and Databases were migrated within the set timeframes, with zero disruption to operations. • The highly specialized personnel of OTE Group has been assigned to manage, operate and support data center facilities, systems and data network infrastructure on a 24 x 7 x 365 basis in 13 different time zones. • The Tier 3 certified Data Center and its Disaster Recovery support the operation of 36,000 employees in 28 countries across the EMEA region. The close collaboration between the two Groups and the disruptive approach has led to the realization of one of the largest SAP HANA installations in Europe. • The Data Center infrastructure has been upgraded to accommodate the installation and operation of the SAP HANA environment. • Being a pioneer in infrastructure and managed IT services, OTE Group undertook the operation, management as well as technical support of the SAP HANA environment. • Adopting the latest technologies, Coca-Cola HBC has significantly optimized internal processes as well as ensured a faster and more flexible reporting model.

www.cosmote.gr

Expanding the partnership and its capabilities OTE implemented and operates the IT service desk of Coca Cola Hellenic. Under an 8 moths successful transition OTE provides First Level IT Support Services to 19 countries in 16 local languages. This is a large scale complex service that is provided 24x7 to Coca Cola Hellenic users and proves the ability of OTE Group to deliver and operate large scale Service Desks. Furthermore OTE provides to CCH Security Operation Center services and protect CCH critical information systems infrastructure so as to get immediate information in case of an attack event. OTE Group Security Operations Center is operating 24 hours a day, 365 days a year, and having as its main duty to continuously monitor and analyze CCH selected data, so as to identify in time potential attacks. In any indication of a possible security event, both for IT and OT environment, problem in the information flow, unauthorized access or any other malfunction, the qualified and certified engineers of SOC take immediate action in order to analyze the incident, to inform CCH and to propose the necessary measures for the handling of the situation. Finally OTE assures the protection of CCH critical systems form DDoS attacks, by using the most modern integrated security platform that only providers of telecom services, such as OTE, may provide.

Looking at Coca-Cola HBC operations in a holistic manner, the purpose of OTE Group is to empower our customer’s vision to be the undisputed leading beverage company in every country where they do business.

C O C A - C O L A H E L L E N I C B O T T L I N G C O M PA N Y

strategy, optimisation of its manufactur-

sets with consumer household panel

ing processes and more. Segmented

and weather data We are developing

execution is the process in which CCH-

algorithms to autonomously analyse

BC leverages data to ascertain the most

the data in this lake and assist us with

effective manner to display its product

better product segmentation at the

range depending on the location, local

point of sale,” Brouhard explains.

demographics and the context of the

On the manufacturing side, Brou-

store’s own layout. “In our pilot projects

hard highlights CCHBC’s partnership

in countries such as Nigeria, we have

with analytics specialist Trilobyte that

put together a single data lake – pow-

is driving a new level of quality control.

ered by Microsoft Azure – to collate

“One of the prerequisites of the

social media and internal customer data.

manufacturing process is the quality

We will be expanding soon our data

standard,” says Brouhard, noting the

JUNE 2019

importance of ensuring quality as

THE RIGHT PARTNERS

it manufactures Coca-Cola’s prod-

Trilobyte and Atos have not been the only

uct portfolio. “Trilobyte and French

key partners for CCHBC’s continued

digital transformation expert Atos have

digital transformation efforts. Through

contributed to developing our statis-

its relationship with Microsoft, CCHBC

tical process control tool. This has

is launching a unified communication

enabled us to analyse manufacturing

platform, Microsoft Teams, that will

data points to anticipate quality con-

radically upgrade a range of processes

cerns and subsequently take actions

deep within the organisation. “We are

for continuous improvement of our

deploying Microsoft Teams extremely

final product’s quality. We have been

rapidly to enhance Office365 and to

developing those insights across more

replace Skype for Business. We have

of our manufacturing plants, and that’s

found the platform to be extremely

something we will be reinforcing with

efficient and viable for enhancing col-

additional technology in the future.”

laboration within teams at every level

E XE CU T I VE PRO FI LE

Alain Brouhard, Group CIO Alain Brouhard began his career with Procter & Gamble, working in four different countries and in a variety of commercial and management roles. Becoming Global Customer Team Leader in 2001, he oversaw the global account management of Delhaize and the European management of new channels, including discounters (such as Aldi, Lidl and Dia) and convenience retailing. From 2002 to 2010, Brouhard held positions at Adidas including Managing Director, Italy and Southeast Europe, from 2007 until he joined the Group in 2010. Prior to that, he was VP for Commercial Operations, EMEA, from 2002 to 2005, and, from 2005, took the role of Managing Director, Iberia with responsibility for Spain and Portugal.

e uro pe .busi ne ssc hief. com

Coca-Cola Hellenic Bottling Company:

Digitalization of Delivery Processes Quenches Changing Customer Demand

“We have a suite of digital solutions creating a connected commerce environment. With one integrated infrastructure and integrated applications, all our ERP and CRM systems are on SAP across 28 countries in an absolutely consistent way, all backed up by one single data center.” – Alain Brouhard, Group CIO, Coca-Cola HBC

SAP Integrated Delivery Framework

Your Deployment of SAP S/4HANA

THE BEST RUN

Integration Partner

Start your move to SAP S/4HANA with clear, prescriptive guidance that empowers you with the confidence, tools and knowledge you need. Learn about SAP Adoption Starter Engagement.

Join the SAP S/4HANA Movement As one of the world’s top three bottlers of Coca-Cola brands, Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) sells more than two billion cases annually of carbonated colas, as well as water, juice, ready-to-drink tea, and energy drinks. Yet, the secret to Coca-Cola HBC’s market leadership goes beyond offering a vast range of products. “We are also working hard to move from data to insights, and we are developing and translating that data into insights, which will drive the business faster and in a more efficient way,” says Alain Brouhard, group CIO of Coca-Cola HBC. With the help of SAP technology and expertise, Coca-Cola HBC is applying large volumes of data generated from a substantial footprint that is connected to consumers 24x7 through a wide variety of brick-and-mortar and online sales channels. And by making this information easily accessible, the bottler can immediately pinpoint and address signs of economic challenges, growth potential, and readiness and foster for new-product introduction. A refreshing new approach to ERP To take the first step towards this strategic vision, Coca-Cola HBC implemented SAP Customer Experience solutions to create a central customer Web portal that allows both sides of the commerce interaction to stay connected day and night. Plus, with the addition of SAP Integrated Business Planning, the production planning process became more integrated and responsive to changing needs. The bottler then collaborated with SAP to deploy SAP S/4HANA as its digital core of data intelligence. By eliminating technology hurdles such as information redundancies and error-prone data, the next-generation ERP suite is helping Coca-Cola HBC to reduce the cost of innovation and focus limited resources on more strategic initiatives that improve the customer experiences and consumer outcomes. In return, every employee can make

faster, more precise decisions by accessing information captured business-wide in real time and act on that information immediately. Expertise and support that revives, inspires, and sustains To help Coca-Cola HBC realize the full potential of SAP S/4HANA, the SAP Digital Business Services organization provides clear guidance and support throughout the planning, implementation, and operation phases. The SAP DBS approach is designed to drive faster implementation and adoption with reduced complexity, increased automation, and greater ease of use. For example, the SAP Value Assurance service offers the bottler access to delivery and technical expertise, methodologies, templated business scenarios, and tailored service. This industrialized implementation support is accessible and being applied through the deployment lifecycle – from planning and safeguarding to technical implementation, functional realization, and innovation. Additionally, the services provide the baseline for an Integrated Delivery Framework that complements design authority of SAP. Led by SAP Digital Business Services, this approach carefully aligns and integrates delivery roles, methodologies, and services with potential system integrators – making the deployment of SAP S/4HANA faster, smoother, and less risky. The feeling of consumer satisfaction through innovation With the combination of SAP S/4HANA, SAP Customer Experience solutions, and technical and functional expertise, Coca-Cola HBC is ready to serve a market that has fully embraced a world that is highly digital, proactively responsive, and tremendously fast. Every touchpoint across the business and commerce experience is now simplified, optimized, and connected – ensuring that the right beverages are available when and where consumers want them.

Active Transformation with Atos

As one of the largest bottlers of The Coca-Cola Company, active transformation is key to sustainability and success for Coca-Cola HBC. With Atos as their digital transformation partner, they are writing the future for soft drinks distribution. • Connected coolers engage personally with customers • Data analytics deliver insights and continuously optimize CCHBC’s business model • Comprehensive SAP and cloud-based solutions ensure secure and agile operation • End-to-end application services drive innovation Atos is a global leader in digital transformation with approximately 120,000 employees in 73 countries and annual revenue of around € 13 billion.

CLICK TO WATCH : ‘CCHBC – SMART COOLERS’ 25 of the organisation. We are even using

increased agility, simplicity and reliabil-

Teams as one of the ways to com-

ity afforded by S/4HANA as being the

municate and collaborate among the

key factors driving the move, fostering

Executive Committee,” says Brouhard.

an advancement of the Agile method-

Elsewhere, CCHBC’s historic rela-

ology that CCHBC has been ingraining

tionship with SAP has continued to

into its operations. SAP Digital Business

deepen. “Over the next three years

Services and Atos is facilitating the

we are progressively migrating to

transition to S4/HANA, joining with

S/4HANA,” explains Brouhard. “We

the work of CCHBC’s application

have already completed the migration

maintenance support partner based

of our business warehouse to SAP BW

in Sofia, Bulgaria.

on HANA, and we’re now progressively

CCHBC has also expanded its

moving more of our functionalities

relationship with Greek telecommuni-

and applications over to in-memory

cations leader OTE, a Deutsche Tel-

processing.” Brouhard highlights the

ekom subsidiary. “We have a long-term e uro pe .busi ne ssc hief. com

C O C A - C O L A H E L L E N I C B O T T L I N G C O M PA N Y

JUNE 2019

â‚Ź6.5mn+ Approximate revenue

1969

Year founded

28,884

Approximate number of direct employees

e uro pe .busi ne ssc hief. com

Designing more efficient analytical tools to get more value from data than usual With QCExpert® Enterprise, DARWin® (Data Analysis Robot) TriloByte Statistical Software focuses on leveraging the power of consistent mathematical methods and algorithms in applications like quality improvement and monitoring, manufacturing, product development and efficiency metrics. TriloByte’s flagship software products QCExpert® and DARWin® serve in research and industries ranging from pharmaceutical and food, polymers, oil, nuclear power, textiles, pulp&paper, automotive to financial markets and government. TriloByte’s portfolio includes training and graduate education at TriloByte Statistical Academy. We are proud supporters and scientific contributors of world-wide organizations like International Society for Business and Industrial Statistics (ISBIS) or Quality and Productivity section of The American Statistical Society (ASA). With Coca-Cola HBC, TriloByte developed and deployed a unique consistent scalable quality metric with feedback, evaluation and decission support system including predictive modelling, multivariate statistical methods or Quality Improvement Potential Factor (QIPF). These solutions help to motivate, provide insight and arguments at all levels and allow to optimize global distribution of resources.

Karel Kupka, PhD., CEO; kupka@trilobyte.cz Marcela Salficka, CFO salficka@trilobyte.cz

www.trilobyte.cz 300 Stare Hradiste, 53352 Czech Republic

contract with OTE as the provider of our main Private Cloud for all our businesses across the 28 countries,” says Brouhard. “They are also becoming our strategic partner for helpdesk both on and off-site, and that also complements our strategic partnership with them.” A striking new aspect of this relationship is in OTE’s fresh support for CCHBC’s cybersecurity practices. The firm has now signed a contract with CCHBC to manage its Security Operations Centre (SOC), providing around the clock log monitoring for each of the company’s 28 operational countries.

“

I believe the critical progress has been our focused and exponential deployment of Big Data and advanced analytics

”

Alain Brouhard, Group CIO, Coca-Cola Hellenic Bottling Company

BATTLING CYBERCRIME “Our work with OTE is complementing our whole cyber infrastructure,” says Brouhard as he details the success CCHBC has enjoyed in the accelera-

with the SOC’s work. An example

tion of its cybersecurity methodologies

would be in a dormant computer that

and technologies. The SOC, he says,

had a virus, and when the computer

enables the company to monitor IT and

was reactivated it was immediately

OT (operational technology) devices

picked up and isolated by the SOC to

across its network, with algorithmic

prevent the virus’s expansion. That

checks notifying the security team of

single log, out of millions of logs that

any deviation that could signal a threat.

the SOC scans every day, prevented

“We have been able to stop viruses

us from potentially experiencing

from spreading through the operation

significant issues.” e uro pe .busi ne ssc hief. com

C O C A - C O L A H E L L E N I C B O T T L I N G C O M PA N Y

CCHBC has also risen to the task

journey that led to the appointment of

set by the European Union’s new

CCHBC’s first CISO. “A fundamental

GDPR legislation, appointing a Chief

piece of work through 2018 had to do

Information Security Officer (CISO)

with GDPR, and I believe we are happy

in the wake of concerns across the

to announce that we have achieved

tech world of increased risk to con-

GDPR compliance.” Brouhard is quick

sumer and enterprise data. “We built

to add that both he and the company

a new team because we needed to

remain vigilant in all aspects of cyber-

increase our knowledge and capability

security, noting that overconfidence

internally,” Brouhard says of the

is not a wise route to take with such

JUNE 2019

risks. Part of the continued efforts to

the whole idea of protecting our cyber

instil a strong security ethos within the

environments by equipping the user at

company comes down to appreciating

the forefront of the protection with the

that individuals can pose the biggest

skills and awareness that they need.”

risk to a company’s data security, and that education in this area is absolutely

DRIVING FUTURE SUCCESS

vital. “One of the elements I want to high-

CCHBC’s digital transformation journey

light is an awareness campaign that’s

is set to continue for the foreseeable

based on thinking before clicking,”

future, but Brouhard stresses the

says Brouhard. “The campaign pushes

importance of the company seizing e uro pe .busi ne ssc hief. com

C O C A - C O L A H E L L E N I C B O T T L I N G C O M PA N Y

“ that “We know

cybercrime is out there, and what I believe to be absolutely critical is that, when we leverage and enhance these technologies, we need to be very vigilant to the fact that we are opening the door to increased risk”

”

Alain Brouhard, Group CIO, Coca-Cola Hellenic Bottling Company

upon the opportunities presented by the technologies and solutions it has implemented thus far. “Before engaging with more technological challenges and opportunities, I want to make sure that we are properly deploying and using what we have in place,” he says, adding that maintaining the right pace is vital to effective change management. “The connected coolers are a good example: by the end of the year we will have deployed 500,000 coolers, and the ultimate goal is to have a fully connected fleet of 1.2mn.” Of technologies beyond those already engaged at CCHBC, Brouhard is excited by the potential of 5G and the continued development of Internet of Things (IoT) solutions. “Within the next one or two years we want to continue the transformation by using what I call ‘exponential technologies’. I see a huge opportunity to leverage IoT as we move into 5G technology, and we are planning to pilot some solutions of this kind with network companies. Voice recognition is another thing that we want to leverage internally and externally with our consumers in some form.” The third technology in Brouhard’s sights

JUNE 2019

CLICK TO WATCH : ‘CCHBC – FUTURE PLANS AND EMERGING MARKETS’ 33

is blockchain, which CCHBC is cur-

leverage and enhance these technolo-

rently piloting for use in supply chain

gies, we need to be very vigilant to the

management. “We want to be able to

fact that we are opening the door to

communicate and provide supply chain

increased risk.” CCHBC’s laudable

visibility to the end consumer,” he says.

advancements with digital transforma-

The critical element to CCHBC’s

tion are certainly compounded by this

entire journey is the focus on driving

awareness, as both Brouhard’s and the

top-line growth through technology,

company’s tireless focus on cybersecu-

never forgetting the importance of

rity ensures it is ready for anything.

remaining cautious to the risks that such technologies can pose. “We know that cybercrime is out there,” concludes Brouhard, “and what I believe to be absolutely critical is that, when we e uro pe .busi ne ssc hief. com

LEADERSHIP

PIONEERING CHANGE AND DIVERSITY IN THE ENERGY SECTOR As an innovator in the energy field, EIT InnoEnergy aims to encourage more evolution, solutions and diversity within the industry WRITTEN BY

JUNE 2019

SOPHIE CHAPMAN

e uro pe .busi ne ssc hief. com

LEADERSHIP

s a pioneer of sustainability, EIT InnoEnergy

focuses its operations on providing support through innovation, entrepreneurship and

education. “Our mission is to be the gene of innova-

tion and entrepreneurship in sustainable energy,” states Elena Bou, Innovation Director, who has been part of the firm since its origins in Eindhoven. “InnoEnergy was founded to contribute to the energy transition and to help solve Europe’s energy challenges – anything that we do should help to reduce the cost of energy, reduce greenhouse emissions and secure the energy supply.” Dubbing itself as the ‘innovation engine for 36

sustainable energy across Europe’, the organisation operates three business lines in order to reach these goals – education, collaborative innovation and startup creation. Under its education pillar, the firm supports Master’s and PHD degrees which focus on technology, engineering, innovation, and entrepreneurship. “These programmes are a gamechanger and enable young people with different mindsets to work in traditional energy companies whilst offering something new to them,” notes Bou. To promote collaborative innovation, the company brings together different organisations from the industry, including researchers and startups, enabling them to launch solutions onto the market. Finally, under its three business lines, Bou outlines how InnoEnergy supports startups within the industry “from the very beginning until the moment that they JUNE 2019

“Our mission is to be the gene of innovation and entrepreneurship in sustainable energy” — Elena Bou, Innovation Director at InnoEnergy

e uro pe .busi ne ssc hief. com

LEADERSHIP

“ By seeing women in relevant positions in the energy industry, young women will finally be more prosperous and motivated” — Elena Bou, Innovation Director at InnoEnergy

are really a sustainable company”. As a member of the executive board and Innovation Director, it is Bou’s responsibility to manage these business lines. On top of this, she also helps to define the company’s defining strategy and monitors its implementation across the company’s global portfolio. For the team, solutions are more important than technology, which can be seen in InnoEnergy’s balanced portfolio: today, more than 230 companies that have received investment from the

JUNE 2019

CLICK TO WATCH : ‘EIT INNOENERGY – WE ARE BUILDING THE WORKFORCE’ 39 business. Despite current trends to

philosophy, and you can see it in our

prioritise digital transformation,

portfolio,” says Bou.

InnoEnergy are not channelling their

To drive sustainability, the firm is also

funding towards one marketable

striving to ensure women receive the

technology. The firm is aiming to invest

same opportunities as men, both within

in a variety of businesses which offer

the energy market and its own business.

a range of solutions across the

This is something Bou feels very passion-

energy spectrum. “There are many

ately about: “Where do women sit within

people that are really in love with

the energy transitions? The same place

technology, and will focus spending

as men. It’s not a question of gender, it’s

on it. For us, it’s more unique – we

a question of the individual and their skills.

are not betting on one single solution.

At the end of the day, despite all the

There is no one proven ballot that

technology innovations, we are impact-

sorts all the world’s sustainability

ing people’s lives and it’s important that

problems. That in general is our

the right people are doing so.” e uro pe .busi ne ssc hief. com

LEADERSHIP

C O M PA N Y FACT S

InnoEnergy is hosting The Business Booster (TBB) between 3 – 4 October in Paris. This year’s theme will be humanising the energy transition, and there will be sessions looking at how diversity in energy can spur innovation

Bou also highlights the importance of

population, female entrepreneurs in

getting women into the energy industry

Europe sat at about 30%, with even

in the first place. “It is believed there are

fewer in the sustainable energy sector at

less women working within the energy

approximately 7%. By 2012, the sustain-

industry as fewer women are engineers.

able energy figure hit 11%. For InnoEn-

If those working in the social sciences, of

ergy, around 13% of its supported start-

which there are more women, could also

ups have female founders. “If we consider

be a part of the energy transition, this

that in Europe more than 40% of emp-

would help fix that problem,” adds Bou.

loyees are female but between 5% and

She has noticed more awareness

6% occupy senior position, then it is clear

regarding the gender gap, but real

that we are making progress but the

change is taking longer than expected.

trend is moving very slowly,” she claims.

For example, in 2008, despite women accounting for around 50% of the JUNE 2019

Bou argues that younger women need to see established and mature women

holding senior positions so that they can

strates they are not equipped with

act as role models. “By seeing women

different competencies.”

in relevant positions in the energy

The firm’s moto of ‘Knowledge, Inno-

industry, young women will finally be

vation, Community’ reflects its stance

more prosperous and motivated,” she

on gender inequality within the energy

says. InnoEnergy is focusing on how to

industry. As an innovator within the

help motivate women into the industry.

field, the company aims to enable more

The firm used to screen for entrepreneur-

sustainable advancements in the energy

ial competencies of startups applying

market – including new solutions, more

for its programme: “We have the

women in management positions, and

preliminary findings that show there are

new businesses joining the industry.

no major differences between male and female entrepreneurs. This is something very relevant, as it demone uro pe .busi ne ssc hief. com

Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

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TECHNOLOGY

NOT YOUR TYPICAL CLOUD COMPANY 44

JUNE 2019

In Alibaba Cloudâ€™s dynamic office in London, Business Chief spoke with Yeming Wang, General Manager for EMEA, to learn how the Chinese juggernaut is redefining the way we think about cloud technology WRITTEN BY

L AUR A MULL AN

e uro pe .busi ne ssc hief. com

TECHNOLOGY

rappling with some of the largest bemouths in the cloud computing

industry, in China it’s Alibaba Cloud

which reigns king. The cloud computing arm of Alibaba Group has quickly earned its stripes as China’s largest public cloud service provider and has the third largest share of the cloud computing market globally, according

to Gartner. Now keen to extend its reach further afield, the company has its eyes set firmly on a new horizon: the EMEA market. One man at the heart of this strategy is Yeming Wang, General Manager for the 46

EMEA region. Well-versed in the technology space, Wang has previously worked for Huawei, managing its operations in Italy, France, Thailand, Indonesia and abroad. This gave him the perfect springboard to drive Alibaba Cloud’s EMEA expansion, a goal which he says is central to the firm’s strategy moving forward. “Alibaba Group has a very strong presence in the Asia-Pacific and we aim to be number one in this region,” observes Wang, pointing to the group’s global businesses like e-commerce firm Lazada. “Besides the Asia-Pacific, we view regions like Europe as very strategic because of its size and maturity. In the Asia-Pacific region, people are still talking about migrating to cloud, whereas in Europe the discussion is JUNE 2019

MORE AND MORE PEOPLE ARE REALISING THAT ALIBABA ISN’T JUST AN E-COMMERCE OR A CLOUD COMPANY, IT’S A DIGITAL TRANSFORMATION ENABLER — Yeming Wang, General Manager for EMEA, Alibaba Cloud e uro pe .busi ne ssc hief. com

TECHNOLOGY

ALIBABA HAS A RANGE OF BUSINESSES IN SECTORS SUCH AS RETAIL, FINANCE AND LOGISTICS AND WE ALSO UNDERSTAND HOW TO CREATE A DATA-DRIVEN USERCENTRIC EXPERIENCE 48

— Yeming Wang, General Manager for EMEA, Alibaba Cloud

now about the digital journey and how to use artificial intelligence (AI) or Big Data to drive business value.” Alibaba Cloud’s gleaming office in the heart of London is perhaps a testament to its global ambitions. Reclining confidently in his chair, Wang contends that, although there may be stiff competition, Alibaba Cloud is creating a distinguished cloud experience like no other in the region. This is not only because it understands the intricacies of the cloud environment, but also because it also understands the highstakes business world. “When selecting cloud providers, customers are looking for value, stability, security and cost-efficiency. But at the very top it’s different: businesses are looking to see how they can use our vertical expertise to make their business better. So, for instance, how can they use data or machines to better their business? It’s a totally different game,” he says. “Alibaba has a range of businesses in sectors such as retail, finance and logistics and so we understand how to create a data-driven user-centric experiences. We fully believe we can help our clients deliver this too.”

JUNE 2019

CLICK TO WATCH : ‘ALIBABA CLOUD: MORE THAN JUST CLOUD’ 49

In many ways, you would be hard-

US dollars every year and 60-70% of

pressed to find an industry vertical

this business is managed on the cloud.

where Alibaba Group isn’t within reach.

Recently we’ve made a strong

Whether you’re interested in retail,

commitment that we will migrate 100%

hospitality, IT, or fintech, the Chinese

to the cloud over the next couple of

conglomerate is omnipresent. By

years.” With over $39.9bn in revenue

leveraging its tried-and-test

bagged in its last fiscal year, this is

experience in these fields, Wang

no mean feat. With this in mind,

contends that Alibaba Cloud can show,

Alibaba Cloud doesn’t just support the

not just tell, its customers how to

Group’s business, it serves as a clear

digitally transform their industries. “At

demonstration to its customers of what

an infrastructure level, we can prove

its technology can do.

we’re reliable,” explains Wang. “Today, Alibaba Group manages more than 1trn

Overlooking the bustling streets of Covent Garden, it seems that Alibaba e uro pe .busi ne ssc hief. com

TECHNOLOGY

Cloud is not just making its mark on the

enabler, offering data and service

London skyline, it’s also leaving a

platforms too. “Once they’ve adopted

lasting impression on the city’s

cloud, businesses can prepare for the

burgeoning cloud industry. However,

second stage where they derive value

it’s important to recognise that, in many

from AI or Big Data,” explains Wang.

ways, Alibaba Cloud is much more than

“Then they can focus on the real

just a cloud company. As the

business outcomes.”

technology and business worlds

Having touched every industry

become ever more intertwined,

imaginable, Wang contends that

Alibaba Cloud has tried to position

customers can leverage the cloud

itself as a digital transformation

company’s insights and expertise to

IT’S IMPORTANT TO RECOGNISE THAT, IN MANY WAYS, ALIBABA CLOUD IS MUCH MORE THAN JUST A CLOUD COMPANY — Yeming Wang, General Manager for EMEA, Alibaba Cloud

JUNE 2019

disrupt their own verticals. “Our

The reason we do this is because we

consumers often ask how we run

don’t just want to run a hotel, we want

Alibaba. So, for example, a hotel

to show people the possibilities of what

company may ask how Alibaba Group

we can do,” Wang says. Hotel giants

manages its hotel, Flyzoo. In this hotel

like InterContinental Hotel Group (IHG)

in Hangzhou, China, everything is

have already benefited from Alibaba

automated. There are no people;

Cloud’s expertise. With more than 350

customers use self check-in and are

hotels in Greater China, the hotel group

served by robots. When you get into a

has joined forces with Alibaba Cloud

room you use voice control. If you need

to develop a scalable and robust IT

room service, a robot will get it for you.

infrastructure that will support its

e uro pe .busi ne ssc hief. com

TECHNOLOGY

long-term growth goals. In doing so, it hopes to blend best-in-class technology with first-rate hospitality. Alibaba Cloud has not just disrupted the hotel market though, it’s also left a lasting impression in the retail market too. Jack Ma, one of the founders of Alibaba Group, is often credited for coining the term ‘New Retail’, a new omnichannel way of thinking where the lines between offline and online commerce are becoming infinitely blurred. With its parent group standing as one of the largest and most valuable 52

e-commerce companies in the world, Alibaba Cloud is well-equipped to offer sage advice and digitally disruptive technologies in this space. “Today, everyone in retail understands the importance of omnichannel offers and user-centric experiences,” highlights Wang, pointing how Alibaba’s collaboration and communication platform DingTalk could be a valuable solution to connect employees, for instance. Indeed, one retail titan that’s working alongside the cloud computing business is Spain’s El Corte Inglés, the biggest department store in Europe by sales. Joining forces with Alibaba Cloud, the Madrid-based JUNE 2019

department store is leveraging tools including big data analytics, artificial intelligence and more to deliver more personalised experiences to its customers today. Verticals such as finance and smart cities have also been identified as key target markets for Alibaba Cloud but, regardless of the sector, one thing is for certain: digital transformation is set to be at the heart of the company’s business strategy moving forward. “We’ve seen that for almost every company today, especially in Europe, CIOs and CTOs don’t have any doubts about digital transformation,” Wang adds. “A could of years ago they were deliberating about whether to use cloud, but now they’re asking whether they will use Big Data or Artificial Intelligence. They have digital transformation strategies and are looking towards digital platforms because they want to change the rules. They want to be a game changer.” This has offered a window of opportunity for Alibaba Cloud, with Wang noting how customers are keen to develop intelligence-based partnerships with “agile e uro pe .busi ne ssc hief. com

TECHNOLOGY

ALIBABA GROUP MANAGES MORE THAN ONE TRILLION US DOLLARS EVERY YEAR AND 60-70% OF THIS BUSINESS IS MANAGED ON THE CLOUD â€” Yeming Wang, General Manager for EMEA, Alibaba Cloud JUNE 2019

companies like Alibaba Cloud who have strong internet DNA”. Indeed, the cloud computing giant has established partnerships and attracted 2.3mncustomers worldwide, including over 1mn paying customers. Yet, when asked what he has been most proud of during his tenure, Wang cites the company’s growing brand awareness, pointing out how it’s much more than your typical technology firm. “More and more, people are realising that Alibaba isn’t just an e-commerce or a cloud company, it’s a digital transformation enabler,” says Wang, noting how, looking forward, the firm plans to deepen its partnerships with industry experts like KPMG and Deloitte. “We want to deliver our Asian digital success story to the western market” he concludes. “It’s not just about cloud, it’s about business and digital transformation.”

e uro pe .busi ne ssc hief. com

PEOPLE

What can tech businesses do to address the STEM skills shortage? RICH MORTIMER, CHIEF PEOPLE OFFICER AT EGRESS SOFTWARE TECHNOLOGIES, REFLECTS ON HOW THE TECHNOLOGY INDUSTRY CAN SOLVE THE ISSUE OF THE SKILLS SHORTAGE IN SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS (STEM) THAT THREATENS TO SLOW THE PACE OF PROGRESS WRITTEN BY

JUNE 2019

RICH MORTIMER

e uro pe .busi ne ssc hief. com

PEOPLE

e are living through a period of unprecedented change. Rapidly evolving technology has trans-

formed how we live and work, creating expectations for the future that would have seemed the stuff of science fiction just a few decades ago. It’s easy to get caught up in the vast possibilities that technology offers, but we must remember that people are the ones driving innovation in this exciting new world and they are central to its success. To fully realise the potential of the technology at

our fingertips, it’s vital that we invest in our people resources and address the skills shortage in science, technology, engineering and mathematics (STEM) that threatens to slow the pace of progress. A recent STEM skills indicator showed that businesses at the cutting edge of the industrial economy, from healthcare to Artificial Intelligence and robotics, are feeling the effects of a lack of STEM skills in the UK workforce. Additional costs of £1.5 billion were associated with difficulties in recruiting staff with the right skill level; 7 in 10 businesses had struggled to fill key positions. While the UK government has rightly identified increasing the UK population’s STEM skills as a priority and a pillar of its JUNE 2019

“Young people start making career choices at a very early stage, so encouraging them to consider STEM-related roles must reflect that. We need to start competing for talent in the classroom” — Rich Mortimer, Chief People Officer, Egress Software Technologies

e uro pe .busi ne ssc hief. com

PEOPLE

industrial strategy, this transformation

workforce continuity, while also

can’t happen overnight – and in the

offering exciting opportunities to

interim we face a skills crunch. As a

a wider range of people.

scale-up business in the technology industry, at Egress we have first-hand

EARLY EXPOSURE IS ESSENTIAL

experience of working hard to attract,

Young people start making career

recruit and retain the skilled employ-

choices at a very early stage,

ees vital to our fast-paced growth. It’s

so encouraging them to consider

clear from this experience that the

STEM-related roles must reflect that.

technology community urgently needs

We need to start competing for

to step-up to tackle the lack of STEM

talent in the classroom.

skills head-on and get smarter about

Research shows that girls in

building our own pipeline of talent.

particular begin to lose interest in

This way we can strengthen our own

STEM-related careers in their

JUNE 2019

CLICK TO WATCH : ‘THE TRUST NETWORK’ 61 mid-teens, with 58% of them dismiss-

the tech sector is strongly positioned

ing the idea of a STEM career by the

to provide both. Technology is the

time they reach university. As an

biggest force for change on the planet

industry, we need to work with schools

right now, capable of solving some of

and youth organisations to promote

humanity’s most pressing problems.

the benefits, opportunities and

Opportunities to make a positive

satisfaction that careers in technology

difference to the world abound and

offer entrants from all backgrounds.

this should appeal to young people

Doing this successfully means looking at what motivates young

seeking meaningful careers. The tech industry is also growing

people. Today’s career entrants are

exponentially at a time when many

prioritising quality of life over the

traditional industries are facing

accumulation of physical assets like

disruption. It therefore provides

cars and houses; they’re looking for

greater job security for those who

“purpose, not paychecks”. However,

have the skills to be part of it. e uro pe .busi ne ssc hief. com

PEOPLE

These should be compelling

such as time and workload manage-

messages for young people who are

ment. The obvious remedy for this is

considering their education and career

experience in the workplace and this

options. We need to build awareness

is something we strongly support

and keep providing touchpoints with

at Egress.

the industry, so that when students

Increasingly, universities are recog-

come to make choices, we are firmly

nising that employability skills are

on the shortlist.

at least as important as academic achievements and they’re becoming

THE POWER OF UNDERGRADUATE PLACEMENT PROGRAMMES

more proactive about engaging with

There’s been a common complaint

for undergraduates. As a tech company,

from businesses in recent years that

it’s our responsibility to reach out as well

graduates lack basic workplace skills,

and provide meaningful placements,

JUNE 2019

businesses to secure work placement

“Offering non-financial advantages to employees is an important strategy for scale-up businesses trying to appeal to today’s career entrants” — Rich Mortimer, Chief People Officer, Egress Software Technologies 63

which give undergraduates realistic

their undergraduate studies – with

insight into how businesses operate in

even more on their way following

the commercial environment. Even if

graduations in 2019/20. Having got

ultimately, a student decides against

to know these individuals during their

a career in technology, experience in

placement year, we can be confident

the workplace is transferable and will

that they have the right cultural fit, the

increase their value for future employers.

skills potential we need, and are ready

Undergraduate placement pro-

to grow alongside the business.

grammes are also hugely valuable for where you start to identify your future

BUILDING LOYALTY THROUGH TRAINING AND DEVELOPMENT

talent. It has worked well for Egress,

Once we’ve recruited into STEM roles,

with several of our current staff joining

we have to create the right environ-

after spending a year with us during

ment to retain staff and create loyalty.

the companies that offer them; they’re

e uro pe .busi ne ssc hief. com

PEOPLE

Evidence suggests that high-level STEM employees are less likely than counterparts in other roles to receive ongoing training, which is an imbalance that tech companies must be at the forefront of correcting. Today’s career entrants place heavy emphasis on personal development, so continuous learning opportunities and career progression are vital. It’s important that as start-ups mature into scale-up businesses, there is a formalisation of training and develop64

ment strategies that will attract and retain employees. Workplace training has changed a lot in the past 20 years – and for the better. Previously you might have spent five days in a classroom and received a certificate at the end, but today, training is much more hands-on and real-world focussed. At Egress, our Academy Programme offers personalised training to employees at all levels of the business, from apprentices and undergraduates, right up through management and at executive level. We typically run six-month programmes with multiple short sessions plus mentoring – JUNE 2019

“Today’s career entrants place heavy emphasis on personal development, so continuous learning opportunities and career progression are vital” — Rich Mortimer, Chief People Officer, Egress Software Technologies

a high-touch approach that’s very effective in developing both the technical and softer management skills that we need in our workforce. Offering non-financial advantages to employees is also an important strategy for scale-up businesses trying to appeal to today’s career entrants. This includes personalised development programmes but also extends to the less tangible ‘experience’ that an energetic and flexible work environment can offer. By focusing on promoting the tech sector to future employees, providing opportunities for undergraduates and developing our own STEM talent within the business, tech companies can put themselves in a much stronger position to navigate the skills shortage, as longer-term educational initiatives also take effect.

e uro pe .busi ne ssc hief. com

S U S TA I N A B I L I T Y

Why we must invest in today’s shared transportation to build the foundation of tomorrow’s smart mobility CEO & co-founder of Zeelo, Sam Ryan, explores why smart transportation is a must for tomorrow’s cities WRITTEN BY

JUNE 2019

SA M RYAN

e uro pe .busi ne ssc hief. com

S U S TA I N A B I L I T Y

e’re living in an exciting time

utopian ideal of a seamlessly integrated,

for smart mobility. Buoyed by

intelligent transport network and the

recent developments in trans-

corollary benefits that such a system

formative technologies, such as artificial

will bring – to the economy, to passenger

intelligence (AI), the Internet of Things

safety, to the health and wellbeing of

(IoT) and fifth-generation wireless

both people and the natural environment.

communications (5G), the vision of

But while a future-thinking perspective

fully-sophisticated smart mobility

is all well and good, it’s important to

seems closer than ever.

remember that innovation cannot be

With one eye firmly fixed upon a future

built on blue-sky thinking alone. While

where everyday processes and services

future smart mobility will certainly

will become increasingly interconnected,

comprise an array of exciting forms of

data-driven and autonomous, it’s hard

transportation – wide scale electrification

not to feel a sense of excitement at the

of vehicle fleets, autonomous vehicles,

JUNE 2019

fully-connected travel experiences and

fuelled by ever-cheaper models

more besides â€“ we must not lose sight

produced on a hyper mass-market scale,

of the practical steps that need to be

with private car ownership per-capita

taken in the here and now to step change

rising year-on-year in virtually every

transportation for tomorrow. This starts

nation on earth. But while current rates

with a fundamental shift in attitudes to

of ownership still far exceed the pro-

travel â€“ namely, away from the singular

portion of one car for every two persons

and towards the shared.

across much of the developed world, a report on disruptive automotive trends

AN INCONVENIENT TRUTH

from McKinsey & Company suggests

For close to a century, the car has been

the beginnings of a global downward

considered king when it comes to

trend in private car ownership. In the

convenient transportation. In that time,

face of growing global frustration at

demand has been both fulfilled and

excessive congestion on inter-city e uro pe .busi ne ssc hief. com

S U S TA I N A B I L I T Y

“ While future smart mobility will certainly comprise an array of exciting forms of transportation… we must not lose sight of the practical steps that need to be taken” — Sam Ryan, CEO & co-founder of Zeelo

70 highways and in busy urban centres,

tion is getting worse, costing an estimat-

and the resulting environmental

ed $305bn in economic impact in 2017

concerns that such high levels of traffic

in the US alone, an increase of $10bn

bring, there is a growing acceptance

from 2016. Excessive carbon emissions

that private vehicles aren’t necessarily

from traffic are polluting our air to

the way that people will move in future.

dangerous levels, with the World Health

Some are already beginning to break

Organisation claiming that transport

the habits of a lifetime and transition

accounted for almost a quarter of global

towards smarter shared mobility

carbon dioxide emissions in 2010. In

services – though the rate at which this

addition, people are spending longer

is happening is perhaps slower than it

than ever commuting to and from work,

ought to be.

regardless of how they travel, while the

The problems faced by societies on

overwhelming need for more car

a global scale as a result of excessive

parking spaces is limiting our ability to

car ownership are intensifying. Conges-

expand and grow smarter cities in the

JUNE 2019

CLICK TO WATCH : ‘TRAVEL WITH ZEELO | YOUR COMMUTING, FAN AND FESTIVAL TRAVEL SORTED’ 71 way that we want to. The fact is that

communal travel models of old. Because

while cars have long been seen as the

of technological innovations, shared

ultimate symbols of convenience, the

travel experiences are becoming better

global overreliance on them means

than ever – though this, of course, means

that these efficacy benefits are not only

that expectations are similarly increased.

being outweighed by the negatives, but

An influx of well-funded ride-hailing

are simply ceasing to exist altogether.

startups has disrupted the transport

Solo travel is starting to seem less like

market, while the level of on-demand

a route to convenience and more like

expediency offered across a range of

a roadblock.

other industries has fundamentally raised the bar on what customers expect from

SHARING THE SPOILS

the services they consume. People

The idea of travelling together is certainly

want services that are made for them,

nothing new, but today’s innovative

designed and developed around their

shared mobility services are unlike the

wants and needs – and they not only e uro pe .busi ne ssc hief. com

S U S TA I N A B I L I T Y

want them immediately, but they expect

chance of actually making the most of

them to be affordable. For the status of

their travel time. Secondly, transport

smart mobility to be truly accelerated,

providers and planners must work

propositions must meet the skyrocket-

together to bridge the current gaps in

ing demands that consumers have now

the network, as the current reliance on

in terms of ease and efficiency.

personal car transportation is primarily

To do this, we can start to focus on

driven by a lack of genuinely compelling

a number of things. Firstly, transport

alternatives. Gaps in the transport

operators and providers can invest in

network can be quickly and dynamically

better onboard experiences to help

filled by new, connected and data-driven

solve the wellbeing and productivity

mobility services, which are a precur-

challenges associated with stressful

sor to the ultimate goal of seamlessly

journeys. By improving communal

connected travel experiences.

travel experiences, whether for work or 72

leisure, operators give people the

Finally, and where feasible, we must look to interlink existing travel options,

â€œ Because of technological innovations, shared travel experiences are becoming better than everâ€? â€” Sam Ryan, CEO & co-founder of Zeelo

JUNE 2019

with a particular focus on solving the challenge of the first and last mile. If people cannot get exactly to where they need to be via shared transport, they will often begrudgingly turn back to the private vehicles they are trying to leave behind. Local municipalities and regulators have a key part to play here, as it is only by enabling the provision of data between all parties in the overall travel experience and ultimately beginning to break down the existing barriers between public and private transportation that we will start to see real progress made.

FACING THE FUTURE Improving the performance and viability

will eventually overcome all these hurdles,

of todayâ€™s shared travel options will lay

and the dream will one day become

a bedrock upon which to start serious-

reality, but hurdles do, of course, come in

ly building the smarter travel networks

sequence. We cannot scale them all at

of the future. True smart mobility isnâ€™t

once, and without overcoming the

here yet, and there are many hurdles to

challenge of making shared mobility

overcome as we progress towards the

more attractive than solo travel, we run

ultimate goal â€“ including building the

the risk of the remaining hurdles seeming

infrastructure for electric and automat-

increasingly insurmountable.

ed vehicles, working out how these next-generation vehicles will properly interface with the human world and solving synonymous challenges in other sectors such as mobile networks. We e uro pe .busi ne ssc hief. com

CITY FOCUS

City Focus 74

Located in Germany’s populous North Rhine-Westphalia region, Cologne’s economy relies on tourism, manufacturing and logistics WRITTEN BY

JUNE 2018

SOPHIE CHAPMAN

e uro pe .busi ne ssc hief. com

CITY FOCUS | COLOGNE

s a 2,000-year-old city, Cologne ranks as the fourth most populated city in Germany, and is widely recognised for

its famed Cologne Cathedral, the seat of the

Catholic Archbishop of Cologne. The city is also home to numerous universities, including the prestigious University of Cologne as well as the country’s largest applied sciences school – the Technical University of Cologne. Despite being one of the most bombed cities during World War II, post-war initiatives have positioned it as a vital commercial hub. The city has earned a reputation as a high76

profile tourism destination. Unique landmarks such as its 12 Romanesque churches and Medieval architecture are peppered against modern skyscrapers. This architecturallyrich environment has prompted industries to host upwards of 50 trade fairs and 2,000 conventions annually. Cologne is strategically situated at the very centre of Europe in Germany’s North RhineWestphalia region. This area hosts upwards of one-third of Germany’s largest 100 companies, and the city’s economic base remains as diverse as its population. Prominent corporations in sectors including auto manufacturing, telecommunications, technology, insurance, tourism, and finance among many others are part of a prosperous business landscape. JUNE 2018

e uro pe .busi ne ssc hief. com

CITY FOCUS | COLOGNE

‘ This area hosts upwards of one-third of Germany’s largest 100 companies, and the city’s economic base remains as diverse as its population’

Corporations that rely on logistics call Cologne home due to transportation excellence. The city boasts Germany’s second largest inland harbour, and a modernised rail system’s primary station. Cologne stands as a critically important rail hub. A wealth of road and bridge infrastructure are only outdone by the city’s Cologne-Bonn Airport. On the commercial side, the airport is recognised as Germany’s second largest freight hub. In terms of passenger flight, its capacity has grown almost exponentially. Business,

JUNE 2018

CLICK TO WATCH : ‘GERMANY’S COLOGNE CATHEDRAL’ 79 commercial and personal transporta-

Chemical and pharmaceutical cor-

tion are keys to this city’s economic

porations have also taken full advantage

health and well-being.

of Cologne’s logistical and transportation superiority. A reported 48 outfits

TOP INDUSTRIES IN COLOGNE

with more than 23,000 employees have

Although Cologne’s most notable

facilities that conduct work from

industry may be automobile manu-

research and development to manu-

facturing, the city has embraced

facturing and distribution. Joint initiatives

diverse markets that sometimes get

such as ChemCologne have laid the

overlooked such as the craft manu-

groundwork for improved economic

facturing industry accounts for

growth in the sector.

upwards of $16.53bn in the greater

The area’s well-regarded higher learn-

Cologne-Bonn area. The industry

ing institutions has garnered interest

also employs more than 185,000

from the biotech and life sciences pro-

people in 151 different occupations.

fessionals. Buttressed by academic e uro pe .busi ne ssc hief. com

CITY FOCUS | COLOGNE

and laboratory resources, more than

Company built a manufacturing facility

20 companies in the metro area and

in 1929, Cologne emerged as an inter-

40 in the region have helped create

nationally-recognised automotive

a robust industry with strong ties to the

beacon. Today, Cologne also hosts the

nearby “Cologne chemical industry

headquarters of global brands such as

belt.” The chemical sector enjoys healthy

Toyota, Volvo, Mazda, and seemingly

growth of more than 150 companies,

endless auto-supply outfits.

seven Chemparks and approximately 70,000 employees. In the midst of a diversified economy,

PROMINENT BUSINESSES IN COLOGNE It’s easy to understand the business

the automotive industry still ranks as

attraction to Cologne. Logistics, trans-

Cologne’s leader. Since Ford Motor

portation agility, and strong development

JUNE 2018

and growth across sectors promise an

of 69,000 employees. The Ford-Werke

increased likelihood that opening shop

GmbH, Ford Europe’s subsidiary, main-

or investing could prove fruitful. These

tains a pair of car-making plants in the

are among three of the prominent

greater Cologne area. The organisation

companies headquartered in Cologne

reportedly employs upwards of 28,000

to know:

people in plants that produce SUVs, cars and light commercial vehicles that

FORD EUROPE

are overwhelmingly exported.

The automotive giant remains Cologne’s single largest employer. Its headquarters

DEUTZ AG

oversee 10 manufacturing complexes

Founded in 1864, this mechanical engi-

across seven countries totalling upwards

neering organisation employs more e uro pe .busi ne ssc hief. com

CITY FOCUS | COLOGNE

â€˜ Since Ford Motor Company built a manufacturing facility in 1929, Cologne emerged as an internationallyrecognised automotive beaconâ€™

JUNE 2018

than 4,000 people in the Cologne area and has posted growth revenue exceeding $1.6bn as well as profits of more than $136mn. Maximising the transportation and logistical advantages of being located in Cologne, Deutz AG manufactures and exports diesel engines and components for the agricultural sector, as well as automobiles and construction equipment among others. In recent years, the outfit acquired Torqeedo in an effort to develop next-generation electric and hybrid marine drives. 83

LANXESS Founded as recently as 2004, Lanxess employs upwards of 19,000 people in the greater Cologne area. The corporation has emerged as a specialty chemical leader in rubbers and plastics among other products. The chemical sector outfit posted revenue exceeding $11.5bn and earned profits topping $180mn. In 2016, CEO Matthias Zachert increased its focus to developing lubricant and fire-retardant additives. The chemical industry continues to enjoy determined growth in Cologne.

e uro pe .busi ne ssc hief. com

T O P 10

JUNE 2019

TOP 10 Largest companies in Europe Business Chief takes a look at the top 10 companies based in Europe by 2018 market value WRITTEN BY

WILLIAM SMITH

e uro pe .busi ne ssc hief. com

T O P 10

SAP

$138.9bn

German software industry giant SAP is the largest in the country according to its market value of $138.9bn. Founded by five German IBM engineers in 1972, the company specialises in enterprise software for business. Indeed, the company says it is “the market leader in enterprise application software, helping companies of all sizes and in all industries run at their best”. With its base in the town of Walldorf, Baden-Württemberg, the company reported its 2018 revenue at $27.8bn, and employs over 98,600 people.

JUNE 2019

$152.6bn

With a market value of $152.6bn, the oil and gas company BP employs 73,000 people, and gives its revenue as $299bn. Formerly British Petroleum, its current name is not an acronym, instead reflecting the fact it is no longer majority state owned. From its headquarters in London, the company oversees some 18,700 retail sites and produces the equivalent of 3.7mn barrels of oil per day.

e uro pe .busi ne ssc hief. com

T O P 10

Unilever $155.8bn

Anglo-Dutch consumer goods company is number eight, with a market value of $155.8bn. Formed from the amalgamation of a soap manufacturer, Britain’s Lever Brothers, and a Dutch margarine maker, Margarine Unie, in 1929, some sources say it is the world’s oldest multinational. Fittingly, it still maintains headquarters in both Rotterdam and London. With over 400 brands, Unilever says that “on any day, 2.5bn people use Unilever products”. It is no surprise, then, that the company’s 2018 revenue came in at $57.29bn. As of 2019, it employs 155,000 people.

JUNE 2019

T O P 10

Total

$168bn

The largest French company according to its market value of $168bn, Total was originally the name of its predecessor companyâ€™s brand of gasoline. The multinational oil and gas company adopted its current name in 1985, the same year its Paris HQ, the Tour Total, was completed. With over 100,000 employees, its 2018 revenue was $209.36bn. Active from the beginning to the end of the oil and gas chain, the company says it is â€œcommitted to better energy that is safer, more affordable, cleaner and accessible to as many people as possibleâ€?.

JUNE 2019

Anheuser-Busch InBev $184.3bn

Multinational drink and brewing company Anheuser-Busch Inbev is headquartered in Leuven, Belgium. Its market value is $184.3bn, and its 2018 revenue was $54.62bn. Founded in 2008 from the acquisition of Anheuser-Busch by InBev, it serves as a holding company for its subsidiaries, including Belgium’s InBev, US company Anheuser-Busch, and Brazil’s Ambev. The company’s scope means that it is ultimately the owner of many famous brands, such as Budweiser and Stella Artois. With an employee count of 182,915 as of 2017, it traces its history back to the founding of the Den Hoorn brewery in 1366.

e uro pe .busi ne ssc hief. com

T O P 10

Roche Holding $189.7bn

Swiss Roche Holding is a holding company for the healthcare corporation Hoffman-La Roche. Its headquarters in Basel, Roche Tower, is Switzerlandâ€™s tallest building and the company employs almost 95,000 people. Known for its research and development spending (around $8.95bn per year), the company has developed many drugs, including Valium, and calls itself the global leader in cancer treatments. Its 2018 revenue topped $56.53bn and its market value was $189.7bn.

JUNE 2019

Driving insurers

digital future into a

At Cognizant, weâ€™ve invested in the end-to-end capabilities needed to help insurance organizations not just do digital, but be digital. We partner with our clients to unlock new value and through the power of digital technologies and new ways of working, we help them evolve into more competitive, progressive versions of themselves. Learn more at Cognizant.com

T O P 10

HSBC

$200.3bn

HSBC’s complex history is reflected in its name, deriving from the Hongkong and Shanghai Banking Corporation, now its subsidiary company. Performing banking and financial services, it operates within four major areas of banking: commercial, investment, retail and private. Headquartered in London, the company employed 235,000 worldwide in 2018. In the same year, its revenue reached $53.8bn. The bank credits founding in Hong Kong as integral to its worldwide outlook, saying “the experiences of the past 150 years have helped form the bank’s character across the world”. Its market value amounts to $200.3bn.

JUNE 2019

Novartis $203bn

The Swiss pharmaceuticals company Novartis comes in third with a market value of $203bn. Makers of numerous well-known drugs with trade names such as Ritalin and Clozaril, the business formed following a merger in 1996. From its HQ in Basel, the company employs over 125,000 people as of 2017, with a 2018 revenue of $51.9bn. Novartis’ corporate mission reads: “We reimagine medicine to improve and extend people’s lives. We use innovative science and technology to address some of society’s most challenging healthcare issues.”

e uro pe .busi ne ssc hief. com

T O P 10

Nestlé

$237.3bn

At $237.3bn in market value, Nestlé is the world’s largest food and drink company, releasing products across a vast range of brands – over 2000, according to the

company’s figures. Nestlé operates in 190 countries, and as of 2018 employs 308,000 people with a revenue of $90.51bn. Founded in 1867, the company has a commitment to “continuing the legacy of our founder Henri Nestlé”, noting his creation of “a life-saving infant cereal more than 150 years ago”.

JUNE 2019

e uro pe .busi ne ssc hief. com

T O P 10

Shell

$306.5bn

With a market value of $306.5bn, Shell is the largest European company according to our metric. The oil and gas titan employs an average of 93,000 people accord-

ing to its own figures, with revenue of $388.4bn as of 2018. Founded in 1907 from the amalgamation of Dutch and English businesses, the company retains its AngloDutch nature with bases in both countries. Involved in every part of the industry, the company describes itself as â€œan integrated energy company that aims to meet the worldâ€™s growing demand for energy in ways that are economically, environmentally and socially responsibleâ€?.

JUNE 2019

e uro pe .busi ne ssc hief. com

100

The commercial a IT transformati O2 Czech Repub WRITTEN BY

HARRY MENEAR PRODUCED BY

JAMES PEPPER

JUNE 2019

and ion of blic

101

e uro pe .busi ne ssc hief. com

O2 CZECH REPUBLIC

Jan Hruska, CTO at O2 Czech Republic, discusses the company’s ongoing digital transformation of both its technology and commercial functions

challenge often faced by customer-facing tech companies is the internal conflict between marketing and IT. After more

than a decade working on the commercial side of telecommunications, O2 Czech Republic’s new 102

CTO, Jan Hruska – a mathematics and computer science graduate from the Charles University in Prague – has the unique advantage of seeing the country’s largest telecommunications provider from both sides of the equation. “I’m lucky to be one of the few people who are able to understand and know the company from every perspective,” he explains. “Because I spent over 10 years in different positions on the commercial side of the business, I can apply a deep understanding of its marketing, commercial and distribution issues, programs and challenges to my technical role. At almost every company there’s a tension between the technicians and the commercial guys. I see my current mission as not only mitigating this tension, but bringing the two halves of the company together to establish a creative dialog that helps us progress, and strengthens both JUNE 2019

103

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O2 CZECH REPUBLIC

our technological market leadership and our commercial position. I can talk to the commercial side and explain technologies using language the commercial guys understand, and along with this, promote achievements, projects and excellent people we have in Technology.” Hruska’s new role has included overseeing the completion of a fouryear digital transformation of O2 Czech Republic’s customer relationship management (CRM) strategy, business support systems (BSS), and practices 104

ranging from billing systems to product catalogues. “We call it Simple Online Company. The aim was a radical simplification that would enable future digitisation,” Hruska says. Never a company to stand still, O2 Czech Republic is also now embarking on another ongoing personnel-focused transformation. “We are now implementing agile scrum methodology for change delivery, that covers about 300 people and connects with the Simple Online Company transformation, because we created the enabler for digitisation and now we need to transform the way we deliver new services and changes,” Hruska adds. From a technological JUNE 2019

“ Our advantage lies in the fact we are able to offer the full range of telco products” — Jan Hruska, CTO, O2 Czech Republic

CLICK TO WATCH : ‘O2 SMART BOX: O2 SMART BOOSTER’ 105 point of view, the company is also

Founded in 2006 after rebranding

implementing significant changes to its

from the amalgamation of Czech

network architecture. Hruska elabo-

Telecom and Eurotel, O2 Czech Republic

rates: “We’re introducing some sign-

is the largest integrated telecommunica-

ificant product improvements, one of

tions provider in the Czech market,

which is that we are complementing

operating approximately 7mn mobile and

traditional copper DSL lines with house-

fixed accesses in the region. In 2012,

hold internet that is based on LTE

the company was the first in the region

connectivity, so called Fixed Wireless

to open its network to virtual operators.

Access.” We spoke to Hruska about

Operating the only Tier III certified

O2 Czech Republic’s ever-advancing

data centres in Central Europe, O2 is

evolution, its past, present and future

a regional leader in hosting, cloud and

transformations, and the collaborative

managed services.

expertise he is bringing to the company’s CTO role.

“Our advantage lies in the fact we are able to offer the full range of telco e uro pe .busi ne ssc hief. com

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O2 CZECH REPUBLIC

108

products,” says Hruska. “We originated

Republic, as well as Czech national

from a merger between fixed and mobile

football and ice hockey leagues –

operators, so we have fully integrated

a huge majority of important matches

suite of products. We were the first

you can’t see without O2 TV service.”

operator here that started an IP television

For a company with such an extensive

service, which adds a new dimension

and diverse portfolio of offerings,

to our fixed internet service.” O2 also

ensuring its customers have an intuitive

produces its own content for television.

and accessible customer experience is

“We have a daughter company that pro-

a top priority. The Simple Online

duces three sports channels, and we

Company, which launched in October

own some exclusive rights to content

2018, involved the launch of a new CRM

like the Champions League in Czech

system and a new customer portal, as

JUNE 2019

109 E XE CU T I VE PRO FI LE

Jan Hruska Jan Hruska graduated in Computer Science at Charles University in Prague in 1994. After 8 years in management consulting, he moved to Telefónica O2 Czech Republic. Within his 15 years with Telefónica, and later O2 Czech Republic, Jan went through many positions, mainly Fixed-Mobile convergence program manager, E-shop manager, Director for distribution strategy and sales performance, Fixed services marketing director, to his current role of CTO, covering responsibility for IT, Network, and Product management areas. Jan’s latest focus is fixed wireless internet, network function virtualisation, simplification of product portfolio and customer serving processes, agile change delivery.

e uro pe .busi ne ssc hief. com

Experienced software alchemists turn your bare-metal into gold. Emeldi Product Engineers have realized a vision enabling service providers to deploy a platform allowing fast & flexible introduction of digital experience services across any and all channels.

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Way forward – in a digital service world The challenge: Migrating and unifying legacy systems running in separate silos is an expensive, time-consuming and risky endeavour. Yet end-customers demand a true omnichannel user experience, an unparalleled level of customer experience, and a unified provision of service throughout all touchpoints in a seamlessly consolidated manner. Ultimately, this has taken service providers down the path of arming their engagement channels with the tools to evolve from a mere sales role into a fully encompassing and comprehensive customer care apparatus. UX expectations have progressed to such an extent that the classical customer journey has matured from a simple path of guided sales to a state of perpetual motion among channels affected by the principles of “anytime, anywhere, anyhow”. The solution: To satiate the constantly growing demands of improved customer experience and keep ahead of customer expectations, there are essentially three different approaches available to CSPs in addressing their channel strategies: • Legacy plumbing: maintaining existing legacy heterogeneous silos and building meshed pipes to connect them together. This approach pretends to solve the problem, however, is merely cosmetic window dressing where the end product risks doing more harm than good. • Silos modernisation: replacing disparate legacy silos with a set of new disparate applications, thus again preserving multiple data masters into the channel architecture. A typical implementation of this approach would be the introduction and deployment of new ecommerce, CRM and POS applications into the existing integration architecture. The resulting solution retains multiple product catalogues, customer data stores and

LEARN MORE

business processes, all stitched together through a complex latticework of integration points. Such solutions require orchestration of multiple “hearts and brains” using sophisticated conductor solutions. TCO and long time to market issues still persist, magnified by restricted agility. • True Omni-channel: replacing all silos with a unified “one heart and one brain” solution of consolidated & unified commerce and CRM business functions. This singular solution inherently does not require sophisticated orchestration capabilities - the customer experiences a smooth journey across their entire brand engagement, and across all channels. In practice, empirical industry measurements have shown that adopters of this approach are generously rewarded with substantially lower TCO and time-to-market enhancements, leading to dominant business agility to meet new customer requirements resulting in overall improvements of net promoter scores across their brand. About Emeldi Commerce® Emeldi Commerce® is a ready-made, unified true Omni-channel commerce & CRM application specifically designed for the service provider industry vertical, supporting all products, services & customer-engagement processes. A solution tailored to be your “one heart and one brain”. With software alchemists in Canada, UK, Czech Republic and Slovakia, Emeldi has built a formidable reputation as an innovative and disruptive solution provider for CRM & Digital Commerce Platforms and is continuously recognized by Gartner as sitting on the cutting-edge in the area of digitalization of the customer experience in the service provider industry.

Trusted Partner of O2 & Telco Sector Key competencies in Telco Sector

We connect internal processes and systems with digital products and services for our clients and help them succeed in a digital world.

Enterprise Economic Systems & SAP Services Portal & Digital Commerce

SPC Provisioning

Prepaid billing

Projects for O2

eCommerce CI/CD solution architecture

DWH & BI Billing / Operations Service Support

Ness, strategic partner for a complex digital transformation

Provisioning

z Understanding your business processes and needs z Exploiting strong market related know-how to achieve your objectives

Custom Application Development

z Delivering flexible & agile solutions to increase your efficiency

Printing Solutions

More information on www.ness.cz

z Unleashing the potential of innovative technologies for your growth

EUROPE London, Munich, Prague, Bratislava, Iasi, Timisoara, Kosice, Brno, Ostrava, Budapest N OR T H A MER IC A Teaneck (HQ), San Jose, Pittsburgh, Albany, Toronto M ID D LE E AST Tel Aviv A S IA Bangalore, Mumbai, Hyderabad, Chennai, Singapore

well as a new product catalogue, network

“Emeldi is a key partner that we picked

inventory system, provisioning system

because of their flexibility. We are able

and a complete revamp of the billing

to influence the product and get any so-

system. “Our aim was to radically

lution we need. Putting their technology

simplify,” says Hruska. “We reworked

in the middle of our CRM is definitely

our product catalogue from thousands

strengthening our partnership.”

of services to a couple of hundred. We

Even though the technical side of the

also switched from our legacy CRM to

transformation is up and running, Hruska

a new system we built ourselves based

maintains the work is far from over.

on Emeldi Commerce Core.” Emeldi is

“This is an ongoing process. We need

a long-term partner of O2 Czech

to keep it simple and make sure any

Republic. The company’s Commerce

additions and modifications we make

Core provides the core functionality

aren’t creating extra complexity, which

for O2 Czech Republic’s new CRM. “It’s

is an extremely tough exercise.” The

the heart of our CRM,” says Hruska.

transformation has also allowed O2

JUNE 2019

“ I spent over 10 years in different positions on the commercial side of the business, and I can apply that deep understanding to my technical role” — Jan Hruska, CTO, O2 Czech Republic

113 Czech Republic to take the next step

er’s mobile and access the system

on its journey towards digitisation.

alongside them. It’s true assisted

“Previously, our store set up had

self-care.”

a legacy system that typically required

If Emeldi is the heart of O2 Czech

four employees behind the counter,

Republic’s new CRM, then Ness is its

working on a main computer, and only

face. “They’re an important IT vendor,

allowed for one on the floor greeting

providing us with portal solutions; our

customers,” says Hruska. “Now, we

new Moje O2 portal, developed by Ness,

have a new system running on all our

is what the customers and internal staff

devices, not just the store computer,

see from their side,” says Hruska. The

but with no reduction in functionality.

new face of O2 Czech Republic’s IT is

We can have four guys on the floor in

allowing the company to pursue strategic

any setup you can imagine. They can

change in the way it manages its

talk with the customer; they can take

employees and hiring practices. “It’s

their own mobile or even the custom-

enabling us to look for a different e uro pe .busi ne ssc hief. com

O2 CZECH REPUBLIC

£1.5bn Approximate revenue

2006

Year founded

4,500

114

Approximate number of employees

profile when hiring people in our stores

they can focus on their conversation

and call centres. Previously, the ability

with the customer.”

to work with the complex system was

In addition to reworking the customer-

a priority. Up to 30% of store consultants

facing side of the business, O2 Czech

were leaving the company within the

Republic’s behind the scenes technical

first three months. Now, after launching

infrastructure is also undergoing a trans-

this system, we can focus on hiring

formation to ensure that the company’s

people who enjoy serving our customers,

services remain at the highest possible

who have more sales skills than technical

level of quality. “We are lucky to be in

skills – and that exit rate has dropped

a business with huge demand - a dem-

to almost zero immediately. Our employ-

and for data that shows double digit

ees are able to work naturally with the

annual growth rates. This requires us

new CRM and portal, which means

to significantly change our network

JUNE 2019

frequency band of 3.7GHz and LTE TDD to provide home and business internet connectivity for locations not covered well by fibre or DSL infrastructure,” Hruska explains. “This is allowing us to offer speeds of 100 megabit per second and higher, which is something that you cannot guarantee on a standard LTE network. This, connected with the O2 Smart Box – the premium WiFi router that we have in households and SMEs – complements the unique ecosystem of our fixed broadband service.” Global tech giant Huawei is a key partner in O2 Czech Republic’s journey to ensure the tier one quality of its network architecture. “Huawei is one of the architecture in

important vendors to the network side

order to sustain quality

of the business,” says Hruska. “Our

and profitability,” Hruska adds.

fixed wireless service that runs on the

“We’re in the middle of virtualising our

dedicated 3.7GHz band is based on

core network systems, as well as

Huawei radio technology. It was one of

introducing a number of product

the key projects that we implemented

improvements.” The company is

with them last year.” Huawei’s Fusion-

implementing Huawei 5G ready radio

Sphere technology is also powering the

access technology to complement its

company’s virtual core network infra-

new, ultrafast LTE broadband service.

structure, part of O2 Czech Republic’s

“Last year, we launched a second

ongoing virtualisation initiative. “Huawei

generation of our fixed wireless broad-

is helping us to prepare for extreme

band service. We use dedicated

data usage growth that we expect to e uro pe .busi ne ssc hief. com

115

O2 CZECH REPUBLIC

“ Our employees are able to work naturally with the new CRM and portal, which means they can focus on their conversation with the customer” — Jan Hruska, CTO, O2 Czech Republic 116

JUNE 2019

continue but is hard to predict precisely. Network function virtualised infrastructure, together with virtual evolved packet core, is granting us practically unlimited scalability with a sustainable profit margin.” Looking to the future, Hruska is confident in the ongoing transformation of O2 Czech Republic, powered by the symbiotic relationship between the business’ commercial and technology divisions. “We need to shorten the delivery time for new features and functionalities; we need sufficient capacity in our network to support the huge global demand for data, as well as providing a service with sustainable profitability.” He concludes: “My vision is that every year we deliver a significant piece of our IT and network transformation which immediately translates to improved value proposition and customer experience, eventually allowing for constant growth of our market share, revenues, and profit.”

e uro pe .busi ne ssc hief. com

117

118

UNLOCKING THE POWER OF DATA WRITTEN BY

LAURA MULLAN PRODUCED BY

JAMES PEPPER

JUNE 2019

119

e uro pe .busi ne ssc hief. com

GOCO GROUP

Whether you’re looking to find the right insurance policy or energy tariff, GoCo Group has the answer – and it’s all thanks to data

hen you first think of GoCo Group you might recall the catchy jingles and attention-grabbing adverts of one of its

businesses – GoCompare. But behind the scenes it’s clear that the company’s technology prowess has been the key driver of its fame. Recognising that consumers were having a 120

hard time finding insurance deals, GoCompare was launched in 2006, and it was the first comparison website to focus on product features as well as price. It’s proven to be a stellar strategy for success. Since it started, the firm has gone public, diversified into new areas, and is now home to four popular and well-regarded brands including GoCompare, MyVoucherCodes, weflip and Energylinx. A lot can happen over a decade and GoCompare is living proof of that, explains Clive Gilson, Vice President of Technology: “GoCompare started at the kitchen table in 2006 and since then it has grown to become a 300-people strong group with a market capitalisation of almost £400mn,” he enthuses. “It’s been a major journey. We hope to maintain our startup ethos to drive the business forward, even as we become a significant player in JUNE 2019

CLICK TO WATCH : ‘VP OF TECHNOLOGY AT GOCOMPARE: MORE THAN A PRICE COMPARISON WEBSITE’ 121

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GOCO GROUP

“ They don’t just want to see us once a year to renew their car insurance; they want to find a partner who can help them save money regularly” 122

— Clive Gilson VP of Technology, GoCo Group

the financial sector and move beyond price comparison.” GoCompare carved a unique path in the comparison space, quickly becoming a household name in the UK. In the early days, GoCompare “championed consumer saving by giving people an option regarding price and product features”, according to Gilson, and it was a winning strategy. However, the landscape is changing swiftly. “Our consumers are maturing,” observes Gilson. “One of the reasons why we diversified from home and car insur-

E XECU T I VE PRO FI LE

Clive Gilson Clive Gilson has substantial experience as a senior technology leader, having worked on major web, mobile, digital software and transformation programmes for nearly 20 years. Gilson has specialised in implementing and developing Agile thought, delivery models and environments at scale in both the commercial and public sectors. He has broad commercial experience having worked with broadcast and media organisations, mobile telcos, in the public sector and government organisations, and most recently in the fintech workspace.

JUNE 2019

CLICK TO WATCH : ‘VP OF TECHNOLOGY AND GROUP DIRECTOR OF DATA AT GOCOMPARE: THE IMPORTANCE OF PARTNERSHIPS’ 123

ance is that we believe our customers

money in lots of different areas. “Data

want a complete service. They don’t

is at the heart of everything we do,”

just want to see us once a year to switch

adds Gilson. “It allows us to under-

their car insurance; they want to find

stand our customers and actively offer

a partner who can help them save

savings rather than waiting for them to

money every day.”

come and see us. It’s definitely more of

Therefore, while price comparison is

a personalised, data-driven strategy.”

a cornerstone of its business, GoCo

The firm’s proprietary technology

Group is also keen to create a more

platform, SaveStack, is the backbone

personalised, data-driven experience

of this strategy. “Ten years ago, we

which it aptly describes as ‘Savings-as-

wrote the code to create a car insur-

a-Service’. Essentially, this means

ance comparison service and then

creating a concierge type relationship

used that to create comparison services

with people and helping them save

for other products like home insurance. e uro pe .busi ne ssc hief. com

GOCO GROUP

124

JUNE 2019

By doing this process multiple times it

with our customers on any given

meant that these pieces of software

channel that they choose.”

were messy – we describe it as

GoCo Group’s head office in

spaghetti code,” Gilson explains.

Newport, Wales, perfectly captures the

“SaveStack essentially simplifies this.

firm’s tech-savvy ethos. Just a stone’s

It gives us a data platform where we

throw away from the Welsh capital of

have an event model that allows compo-

Cardiff, the space is humming with

nents (either external or internal) to

activity as both data and technology

interact with each other and to serve

teams work side by side. This is no

the consumer journey on any channel.

mean feat: around 150 people (or just

It’s a reflection of the fact that in the

under 50% of the workforce) work in

2020s no one will rely on just website

the technology and data space. As

journeys. We need to be able to work

Natalie Jakomis, Group Director of 125

E XE CU T I VE PRO FI LE

Natalie Jakomis Natalie Jakomis has over 10 years’ experience leading the establishment of data-driven organisations, strategies, programmes and initiatives. As Group Director of Data at GoCo Group, Jakomis oversees the Group data engineering, data science, data intelligence and web analytics teams and leads on the data strategy for the business, engineering the organising of data, as an activity, a business function and a capability. Jakomis is passionate about unlocking the power in data, to see connections, find patterns, learn new things and bust myths to deliver results and add value. She enjoys working with brilliant and talented individuals, adopting data-first methodologies to make a real difference. e uro pe .busi ne ssc hief. com

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CLICK TO WATCH : ‘GROUP DATA DIRECTOR AT GOCOMPARE: DRIVING INNOVATION WITH DATA’ 127 Data, walks through the office, she

they experiment, gather more data and

outlines how the firm’s 1Tech Vision

embrace it as a learning lesson.

has been a unifying force. “The 1Tech

With a wealth of information at its

Vision essentially describes how data

fingertips, it’s clear that data is

and technology come under one

everything at GoCo Group. “It’s not an

umbrella and how we’re one single unit,”

all-knowing crystal ball but it’s probably

she explains. “It sends out the mes-

as close as you can get,” laughs Jakomis.

sage that data is the core of the business.” “We can use data science techniques It also makes it easier for the business

to find correlations and patterns in the

to create a unifying set of core values

data which can help us make decisions

and principles: for instance, Jakomis

about sales, marketing and our perfor-

points out how the firm aims to be one

mance, for example.” As such, data is

“where innovative failure is encour-

at the forefront of the firm’s strategy.

aged”, meaning that it’s OK if employ-

Today, GoCo Group has a data function

ees make the odd mistake so long as

that consists of four teams, says Jakomis: e uroa pe nz .busi ne ssc h hief. ief. com

GOCO GROUP

128

a data engineering team which is

on the website”. On top of this, the

“responsible for the key architectures

company also has a Group Data

within the business, so primarily the

platform which draws upon data from its

firm’s data warehouse and key sys-

several companies including GoCom-

tems”; a data intelligence team which

pare, MyVoucherCodes, Energylinx

“provides insight to the business”; a

and weflip. “The platform is helping us

data science team which is a “combi-

understand our customer base and

nation of data engineers and data

use cases, and so data excellence is

scientists who help the business

key,” she says. “If we want to cultivate

overcome complicated problems”; as

a more data-driven culture, we need

well as a web analytics business which

to make sure we have the right data

“ensures web optimisation and helps

literacy, data confidence, and

to understand customers’ behaviour

ultimately, a high-quality robust data

JUNE 2019

set that’s accessible to everyone in the business.” Many businesses like GoCo Group have identified data as the next great frontier, and this means that data literacy is a highly coveted skill. Wanting to attract and retain a strong level of expertise, the company has created the GoFurther Academy, which offers opportunities including sponsored degrees, internships, work placements and more. “It gives people the opportunity to flourish in the data space,” adds Jakomis, noting that the company has also worked hard to increase diversity across the workforce whether through hiring, improved communication or events which celebrate diversity. While GoCo Group has sought to

“ The platform is helping us understand our customer base and use cases” — Natalie Jakomis Group Director of Data, GoCo Group

nurture an innovative and collaborative culture internally, it’s also looking beyond its walls for inspiration. Kieron Nolan, Group Director of Technology, points to the firm’s long-lasting partnership with Certus, which was recently acquired by SysGroup. “Certus has been a key technology partner of ours for several years now. They are our hosting partner for all our back-office estate, and they have also assisted us with the upgrades e uro pe .busi ne ssc hief. com

129

GOCO GROUP

of core office infrastructure and end-user devices,” he says. “Their values match ours, making it easy to overcome the challenges that technology presents from time to time.” Elsewhere, Jakomis discusses the firm’s fintech community development project, Machine Learning for Fintech. Recognising that artificial intelligence (AI) and machine learning are the future of the financial service market, Goco Group has forged meaningful relationships with players like Money 130

Dashboard. “It’s been a really exciting project,” enthuses Jakomis. “Working together, we’ve built an API that categorises consumer spend by merchant and purpose, aligning with Money Dashboard’s vision of helping people understand their finances, and helping us to accelerate into the fintech community.” GoCo Group has swiftly moved up the ranks to become a leading technology player and make no mistake: it’s there to stay. On the road ahead, Gilson asserts that GoCo Group aims to make its services “ubiquitous”. “We’re really looking forward to the next few years,” he says. “There’s a lot of JUNE 2019

131

“It’s about helping people everywhere save time and money, with SaveStack playing a crucial role”

exciting opportunities like open banking. That’s the real thrill behind this.” Jakomis agrees, reiterating the firm’s core mission: “It’s about helping people everywhere save time and money, with SaveStack playing a crucial role.”

— Natalie Jakomis Group Director of Data, GoCo Group e uro pe .busi ne ssc hief. com

132

Hampshire Trust Bank: open banking through API infrastructure WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

JAMES PEPPER

JUNE 2019

133

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HAMPSHIRE TRUST BANK

With its mantra of ‘excellence through specialism’, SME-focused Hampshire Trust Bank is undergoing a digital transformation journey to improve efficiency, collaborate with fintechs and enhance the customer and broker experience

ampshire Trust Bank (HTB) is a specialist bank staffed by experts focused on helping UK businesses realise their ambitions. The bank’s

primary operations are development finance and specialist mortgages, and specialist business finance, focusing 134

on wholesale, block-discounting, classic cars and other asset finance categories. HTB also provides award-winning savings accounts to individuals and businesses. Russ Fitzgerald, Chief Information Officer (CIO) at HTB, discusses the digital evolution of the bank: “Although the bank was initially established back in the 1970s in Hampshire, it was acquired by private equity investors in 2014. Soon after, it moved to London and has been successfully growing its business since, moving to its current Bishopsgate headquarters in 2017.” Fitzgerald joined HTB in April last year as an IT Director and soon progressed to CIO in September the following year. “I was introduced to HTB having spent the last 20 years or so working for large financial institutions. After I left my previous role I felt less attracted to the larger institutions and wanted to work for a smaller bank where I could play a greater part in defining and delivering the JUNE 2019

135

e uro pe .busi ne ssc hief. com

HAMPSHIRE TRUST BANK

“ We’re not on a digital journey to replace human interaction – this is a digital journey that enhances the human interaction” — Russ Fitzgerald, CIO, Hampshire Trust Bank

also provide a first-rate service, delivering dynamic support for smaller banks. They’re less rigid than mainstream suppliers, which works particularly well for us and suits our agile operating style.” When Fitzgerald joined HTB, he established a strategy for the board and prioritised plans for technology and infrastructure development. The bank introduced an application program-

136

strategy,” he says. “HTB has turned

ming interface (API) infrastructure as

out to be everything that I’d hoped for.”

part of its high-level architecture, which

The CIO’s role involves managing IT,

enables data services and collaboration

security, business transformation, facili-

capabilities. This infrastructure involves

ties, operational resilience and supplier

consuming data services to improve

management.

operational efficiency, credit risk pro-

With an impressive growth trajectory

cesses, and customer and broker expe-

in terms of staff and revenue, the bank

rience. With this infrastructure in place,

targeted digital as the key to its expan-

the bank can maximise the potential for

sion. “In line with our growth and to sup-

fintech collaboration opportunities.

port this development, the next stage

“Integral to our strategy was the

of our transformation relied heavily on

introduction low-code tools into HTB.

technology. This initiative launched our

Having assessed the marketplace, we

digital transformation journey,” says

forged a strategic partnership with

Fitzgerald. “Fortunately, the bank was

MatsSoft (Netcall) to use their low-code

built on robust foundations – this is a

environment to develop workflow and

credit to those who established the

front-end integration with data and

business in 2014. It runs on a core bank-

services, such as Phoebus which can

ing platform called Phoebus, which

help improve operational efficiency and

provides all the services the bank has

underwriting capabilities,” he adds. HTB

needed to date. The team at Phoebus

found that MatsSoft (Netcall) enabled

JUNE 2019

CLICK TO WATCH : ‘BUSINESS MONEYFACTS 2018 WINNERS OF BEST BUSINESS FIXED ACCOUNT PROVIDER’

E XE CU T I VE PRO FI LE

Russ Fitzgerald Russ leads Hampshire Trust Bank’s Information Technology, Information Security, Business Change, Business Intelligence, Facilities Management and Process Improvement capabilities. He has over 20 years’ experience in IT and business change as a leader of operational and change capabilities. Previously he has performed roles with Nationwide Building Society, Lloyds Banking Group and The Royal Bank of Scotland and has undertaken key consulting assignments both as an independent and working with major consulting firms.

e uro pe .busi ne ssc hief. com

137

Market-leading technology and proven expertise. Why settle for less? As a market-leading provider of technologies for challenger banks, building societies, lenders and third party servicers, Phoebus Software Limited (PSL) provides optimum operational efficiencies to over 25 clients in the UK & Ireland. Our clients range from Tier 1 institutions to smaller scale operations and start-ups. Our ethos is about creating a true working partnership that delivers success. We believe that the initial implementation is not the only part of a relationship where our clients want to be highly satisﬁed; we believe in delivering exceptional client engagement throughout the full life cycle of the relationship with our clients. With over 30 years’ experience, PSL is a genuine business enabler that enhances and automates originations and servicing activities for lenders and deposit takers in both retail and commercial ﬁnancial services companies. Over £50 billion of assets are managed on behalf of over 100 companies on the Phoebus servicing solution, administering products such as residential and

LE ARN MORE CONTACT US

commercial lending, equity release, development finance, bridging and unsecured lending. In addition, a full range of savings products are catered for across retail and commercial clients. Compliant Open Banking API’s and an integrated workflow solution deliver automation of any lending or savings process thus optimising efficiencies and providing ROI. In addition to enabling multi-channel originations across multiple lending and savings products, Phoebus provides a highly automated primary and special servicing solution. Modules are available to support areas such as securitisation, syndication / sub-participation and portfolio migrations. An integrated General Ledger and inherent double entry principles ensure complete financial integrity of all accounts administered on the system. Work with PSL and you’ll be able to drive your business forward using a highly automated solution, delivered by an experienced team focused on delivering solutions that are proven to meet your needs.

We know our systems, We know your business When you hear the name Phoebus Software, it is generally associated with reliability, robustness and experience. This is because for over 30 years, Phoebus Software Limited (PSL) has been at the heart of supporting the banking and lending sectors by providing mission critical platforms, on which today are serviced over £50 billion of varying asset types in Sterling and Euros. Today, we continue to see the immergence of varying digital solutions especially in the challenger bank and lending sectors. The launch of an array of new Fintech providers has created real diversification in the marketplace with suppliers looking for their own specific USPs, especially in the area of the user interface (UI). Users today are labelled in many ways whether they be either Generations X or Z, the iGeneration or Millennials, but they have one thing in common – they expect digitised efficiencies with a look and feel they can relate through their personal online interactions in areas such as gaming. Open Banking is now a major driver in the banking sector and software providers are required to deliver to the requirements of this exciting opportunity. So how does Phoebus fit in with providing such solutions in this new digitised age? The balance the industry needs to find is in the area of innovation verses the requirements of a highly regulated environment. For a software supplier such as Phoebus Software Limited, this provides opportunity as through implementing Phoebus, banks can build their foundations on a proven, compliant and scalable platform, and then opt to use whatever technologies they require (whether Phoebus or otherwise) to deliver the customer experience they want using compliant Phoebus APIs. Take Hampshire Trust Bank (HTB) as an example. Proving PSL’s partnership approach to client delivery, the relationship between the two organisations actually dates back over thirty years when the Phoebus solution was developed and implemented to run Heritable Bank’s full banking operations. Heritable Bank was a multi-currency, multi-product merchant

bank and key individuals within its management team became the management team that took over Hampshire Trust Bank in 2014 using PE backing. As a previously trusted partner that supported all of HTB’s day 1 product and distribution requirements, it was a natural choice for Phoebus to be selected as the platform to provide HTB’s functionality in these areas. Neil Dyke, CTO at Phoebus Software comments, “we have various specialist banking clients and HTB in particular is one with evolving, forward thinking requirements that means that Phoebus needs to be able to support various digital solutions for them. Working with HTB allows us to ensure that our core solution supports the digital requirements of a modern bank such as HTB, whilst supporting mission critical areas such as financial and regulatory requirements which are core to the Phoebus platform”. “What we have delivered to many clients now is a range of APIs allowing the 2-way movement of data between Phoebus and other solutions required as part of a technology stack, whether that be mobile applications, Phoebus developed, or 3rd party digital originations platforms or more specialist solutions such as treasury providers, valuation companies, etc. This approach fits in with HTB’s and other clients future strategies which we regularly review with them”. Richard Pike, sales and marketing director at Phoebus Software adds, “the market requires flexibility and we have built our digital strategy around this. There are highly aspirational innovative banks out there that have launched having gone down the full system development build route that will undoubtedly come to the conclusion, probably driven at a point of scale, that a more robust core engine such as Phoebus should be used to ensure financial integrity and compliant activities. Customer facing innovation can continue to be developed in areas such as UI and UX by these organisations which can easily be integrated via Phoebus APIs. Our experience of working with such institutions in critical areas such as migration means PSL is very well placed to assist such businesses”.

“WE’VE RECEIVED SOME AMAZING BROKER FEEDBACK ON THE PLATFORM” Russ Fitzgerald, CIO, Hampshire Trust Bank

Apak Group, a Sopra Banking Software company, have been providing leading global software solutions to the banking and asset finance sectors for four decades. Our Sprint solution offers industry-leading front and middle office functionality for Lenders and Intermediaries, with point of sale finance applications for smartphone, tablet and desktop.

LEARN MORE CONTACT US

“ Our API Infrastructure enables HTB to play a greater role in the SME lending ecosystem” — Russ Fitzgerald, CIO, Hampshire Trust Bank

it to build development capabilities with

Virtrium, a Chaucer Group Company.

ease and speed, due to its ability to offer

“Virtrium helped us identify, procure,

API integration. With low-code, the firm

contract and assess the architectural

has commissioned a series of develop-

implications of various API orches-

ments within its operations, such as a

tration layers,” notes Fitzgerald. “In

new mortgage platform. “The bespoke

September 2018 we commissioned

platform targets specialist lending. It will

this transformation work with Virtrium,

be integrated through API infrastruc-

and by December we had settled on a

ture with Phoebus later on this year and

contract with SnapLogic. By the end

will give us much needed operational

of the month, we had implemented the

efficiencies through data collection

API infrastructure into our production

with both internal and external data

environment and had a proof of concept

sources. Opportunities to collaborate

up and running.” Throughout the year

with fintechs within the property market

ahead, HTB will invest in its existing

remains an opportunity waiting to be

applications and develop further plat-

tapped,” says Fitzgerald.

forms focused on improving operational

The bank has also formed a valuable partnership with consultancy firm

efficiency, underwriting capability and broker experience. e uro pe .busi ne ssc hief. com

141

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During last year, the firm developed a series of core applications which HTB plans to integrate with back-end platforms using Snaplogic’s API infrastructure. The applications have been created in order to improve efficiency as well as broker and customer experience. “We’ll use them to underpin the specialist advice that we give on a face-to-face basis to brokers and their clients. HTB has also invested in the Sprint platform from Apak Group, a Sopra Banking Software company. “Our partnership with Apak has worked well for us,” comments Fitzgerald. “Our

143

collaborative development of their Sprint platform services the brokers of

‘Capability as a Service’ to supplement

our Specialist Business Finance Divi-

our strength. We have a great relation-

sion. We’ve had some amazing broker

ship with Ben de la Salle from ICA Con-

feedback on the platform. “It is now in-

sultancy, as he gives us the capabilities

tegrated to HTB via our API infrastruc-

of a big bank CISO when I need to set

ture and will shortly integrate Sprint

strategy and direction, as does Cliff

with APIs for Asset valuations and HPI

Ratcliffe from Techana who brings the

checks, further improving efficiency

IT architectural knowledge and lessons

with more opportunities on the horizon.”

learnt from bigger banks to the benefit

On the subject of capability, Fitzger-

of HTB. Cliff has proven to be a valuable

ald notes: “While we have the ambitions

partner for us and I have the benefit of

to build the services and capabilities

them on site on a part time basis as and

of larger competitors, we sometimes

when we need them.”

lack the senior capabilities to help lead

HTB recently refined its credit

us through the journey. I draw down on

risk strategy with help from partner e uro pe .busi ne ssc hief. com

digital transformation experts for Financial Services Chaucer advises on: • Leveraging technology to innovate • Establishing open banking platforms • Identifying and contracting the right technology partners • De-risking delivery to accelerate value Find out more at www.chaucer.com/financial-services

Deloitte. As a result of this, the bank is

interaction and allows us to drive up

investing in modelling, decisioning and

our proposition, improve our operating

data analytics capabilities. “Deloitte

efficiency and draw information from

were key for us in helping set our strat-

internal and external data sources that

egy and stretch our ambitions,” com-

will greatly improve the way in which

ments Fitzgerald. “With Deloitte’s guid-

we underwrite and assess proposi-

ance and support we have invested

tions,” says Fitzgerald.

in a complete refresh of our data and

“We have established our high-level

BI technology stack, which resulted

architecture and identified, contracted

in a decision to invest in Snowflake’s

and purchased our API infrastructure,”

database architecture and the Tableau

Fitzgerald concludes. “Our API Infra-

visualisation tool.”

structure enables HTB to play a greater

“We’re not on a digital journey to

role in the SME lending ecosystem. We

replace human interaction – this is a

have further commissioned low code

digital journey that enhances human

development tools to develop our capa-

JUNE 2019

2002

Year founded

1,800

Approximate number of employees

145 bilities in this space and worked closely

As the company continues on its digi-

with flexible platform providers to tailor

tal transformation journey, it is focussed

our proposition. We will further utilise

on using data services to improve op-

data and services with a view to benefit-

erational efficiency, underwriting ability,

ing from open banking opportunities in

and the customer and broker experi-

the short term. Our detailed infrastruc-

ence. â€œCollaboration with fintechs is a

ture strategy underpins this and dem-

key component of my role and keeping

onstrates how we manage capacity and

a close eye on where Open Banking is

compute capabilities across a hybrid

going is essential for HTB as an organi-

of our own data centers and the public

sation,â€? notes Fitzgerald.

cloud. This allows us to be an agnostic provider in our approach to transitioning capacity and compute to the cloud, which is aligned with our agile delivery approach,â€? states Fitzgerald. e uro pe .busi ne ssc hief. com

146

ETHICALLY HARNESSING DATA TO RECONNECT WITH CUSTOMERS WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

JAMES PEPPER

JUNE 2019

147

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DNB

Aidan Millar, Chief Data Officer at DNB, discusses the bankâ€™s transition to digital services and the importance of leveraging data to reconnect with customers as a trusted data custodian 148

NB is Norwayâ€™s leading financial services provider â€“ not just in regards to size, but also with its progressive

digital transformation program; with over 2.1mn retail customers and 221,000 corporate customers. DNB reduced the number of branch offices in Norway from 116 to 57 in 2017, driven by changes in customer preferences. The success of the channel shift is remarkable. In a Finalta benchmark analysis of the international banking sector, DNB was ranked number one in the world based on the efficiency of its branch network. Digitalisation has brought explosive growth in data, bringing new challenges and opportunities to the business. For DNB the imperative is, and will always be, to stay relevant to JUNE 2019

149

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DNB

150

“ Customers are talking to us every second on our digital channels – we just need to listen” — Aidan Millar, Chief Digital Officer, DNB

JUNE 2019

CLICK TO WATCH : ‘NORWAY’S FINEST RESIDENTIAL’ 151 customers in their daily digital lives.

and stay relevant to our customers on

“Our customers are talking to us every

digital channels.”

second of the day on digital channels,

Millar is deeply passionate about

and we have to have the ability to

handling data in a legally compliant

listen and respond effectively to their

and ethical way. “We’ve got to be seen

needs,” says Aidan Millar, Chief Data

as the trusted data custodian that

Officer at DNB. This is the challenge

capitalises on data driven insights to

of digitalisation that he believes is too

deliver value for our customers, and

often overlooked. “Everyone talks

we’ve got to do this in an ethical and

about going digital, but if you’re not

compliant way.” This commitment is

capitalising on data streams that

a defining element in establishing the

are generated through your digital

customer centricity that Millar aims to

channels, then you’re going digital

drive through data driven insights. “It

without listening. My role is to leverage

starts with people and organisational

digital interaction data to reconnect

culture. Culture eats strategy for e uro pe .busi ne ssc hief. com

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DNB

154

breakfast, so you have to fuel your enterprise data strategy with a passion for data,” says Millar. The DNB transformation to a data driven organisation is underpinned by a focus on the ethical and compliant use of data. “Regulations are often seen as a burden and should be reframed as best practice, but why wouldn’t you want to be compliant with best practice?” says Millar. The General Data JUNE 2019

Protection Regulation (GDPR) is about protecting customer data and data rights, who would disagree with that as a principle, he asks. The emerging Basel Committee regulations on data (BCBS239) are also important, he says, setting out where data comes from and its efficacy in risk reporting processes. “The ethical use of data will be a strategic differentiator for

“ Building trusted partnerships with niche providers to co-create and build reciprocity” — Aidan Millar, Chief Digital Officer, DNB

banks of the future. Companies that haven’t used their data in an ethical

and Microsoft Azure have been lever-

way will lose trust, and one bad

aged as the bank migrates onto

customer experience can mean that

scalable and adaptable cloud plat-

trust is lost forever.”

forms. “From a data perspective the

The data itself is managed within

cloud platforms provide highly secure,

DNB’s multi cloud solution, whereby

massively scalable and agile delivery

both Amazon Web Services (AWS)

solutions,” says Millar. The cornerstone

E XE CU T I VE PRO FI LE

Aidan Millar Aidan Millar is passionate about the positive disruption of technology and advanced data analytics on the financial services industry. He has over 25 years of professional experience partnering with senior executives to implement large-scale IT change and data related initiatives to drive competitive advantage; a Positive Disruptor͛with the courage to make things happen!

e uro pe .busi ne ssc hief. com

155

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“ We have to stay relevant and add value to customers in their daily digital lives” — Aidan Millar, Chief Digital Officer, DNB 157

of DNB enterprise data and analytics

big banks went with one data vendor,

platform, Millar says, has been the

but that didn’t enable them to leverage

establishment of DNB’s advanced

the niche capabilities of multiple

cloud based data science laboratory

partners.” DNB has taken a different

which provides the analytics capability

route, bringing in the flexible, best of

and the technical scalability required to

breed solutions: R-Studio, Jupyter

process the massive volumes of data

Notebook, Spark and Neo4j, among

in near real time. Amazon AWS comes

others, for their data science capabili-

in as DNB’s primary big data appliance,

ties; Syncsort (Trillium) for data quality;

but Millar is quick to add that DNB

Collibra for its crowdsourcing business

takes a holistic approach to its vendor

orientated data governance toolset;

partnerships, representing a break

and Celebrus, the real-time Customer

from the approach the sector has

Data Platform from D4t4 Solutions Plc

taken in the past: “Traditionally, most

for leading edge tagless digital e uro pe .busi ne ssc hief. com

DNB

2.1mn

Personal customers

1.3mn Internet banking users

158

269mn

Payment transactions in 2018

JUNE 2019

159

e uro pe .busi ne ssc hief. com

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CLICK TO WATCH : ‘DNB – S FOR SAVINGS AGREEMENT’ 161 channel capture; as well as Infosys as

ultimately builds customer-centricity

the strategic data partner, leveraging

through innovative solutions such as

their capabilities and accelerators

a Data Marketplace, which helps drive

related to data engineering, data

data driven actionable insights. One

governance and analytics. When it

area that has benefitted from such

comes to managing this array of vendors,

insights is the continued development

Millar believes that DNB’s approach

of DNB’s online and mobile digital ser-

promotes reciprocity. “I see our technol-

vices. “We’re looking at digital channel

ogy solution vendors as trusted solution

interaction data to asses customer

partners,” he says. “We work closely

journeys on our digital channels using

together to foster these trusted partner-

a leading-edge digital capture solution,

ships where we co-create and deliver

provided by Celebrus”, Millar explains.

value together.”

“We can assess whether our digital

All of this advanced technology, and the work involved in implementing it,

channels are aligned to customer preferences and continuously improve e uro pe .busi ne ssc hief. com

DNB

162

the digital experience.” The platforms can

continuously enhancing core busi-

also be optimised to deliver highly tail-

ness operations. Its internal efficiency

ored digital offerings to meet anticipated

program DigiDrift is delivering results

customer needs and wants, he says.

– DNB has employed robots in as many

“Our analytics capabilities are focused

as 35 processes so far - the compa-

on meeting delivering the right product,

ny’s chat-bot Aino can talk to 3,000

at the right price, through the right

customers at the same time and there

channel, at the right time,” says Millar.

is more to come. DNB is embracing

In addition to developing new and innovative digital products, DNB is JUNE 2019

technologies and expects changes to accelerate in the years to come. The

€5.2bn Approximate revenue

1822

Year founded

9,225

Approximate number of employees

Bank has entered into a partnership

process that understands the full

with the Norwegian University of

context of the document and can

Science and Technology (NTNU),

process it as if it were a human being,”

sponsoring three professorships

he continues. Millar stresses that no

focused on machine learning, Natural

part of this endeavour is aimed at

Language Processing (NLP) and

replacing staff, but is instead about

augmented Robotic Process Automa-

applying people to tasks that require

tion (RPA). “We want to take our RPA

higher value human insights. Making

to the next level where we can digitise

the benefits of digital transformation

paper documents into a systematic

clear to employees and allaying e uro pe .busi ne ssc hief. com

163

DNB

164

JUNE 2019

concerns of what it could mean for their roles has been vital to the success of the journey so far. Through the application of data and advanced technologies to optimise both internal efficiency and the customer experience, DNB is well on its way to maximising the value of the bank’s digital transformation. The focus on reconnecting with customers, not only to deliver added value but also to generate impactful insights to steer strategy effectively, is bolstered by Millar’s unerring dedication to maintaining DNB’s reputation as a trusted data custodian. As the bank’s customers continue to transition to its digital offerings, it is certainly positioned to continue with its powerful and successful data driven digital transformation journey while reinforcing its admirable corporate values of a trusted service provider.

e uro pe .busi ne ssc hief. com

165

166

SEG AUTOMOTIVE: AGILITY AND AUTONOMY IN THE SUPPLY CHAIN

WRITTEN BY

HARRY MENEAR PRODUCED BY

JUSTIN BRAND

JUNE 2019

167

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SEG AUTOMOTIVE

NINA BOMBERG, GLOBAL LEAD BUYER AT SEG AUTOMOTIVE, DISCUSSES COLLABORATION, COMMUNICATION AND THE COMPANY’S INCREASED AGILITY FOLLOWING ITS CARVE-OUT FROM BOSCH

onventional wisdom dictates that, when leveraging bargaining power, the bigger the company, the better the deal. In

January 2018, the Starter Motors and Generators division of multinational engineering and electron168

ics company, Bosch, completed its transition to become an independent organisation. Trading under the name SEG Automotive, now owned by Chinese consortium Zhengzhou Coal Mining Machinery Group (ZMJ) and China Renaissance Capital Investment (CRCI), the company is continuing to push the envelope of powertrain solutions for combustion engines and electrification in the automotive sector. “Our new advantages include being more flexible, faster and more able to incorporate supplier innovation,” explains Nina Bomberg, Global Lead Buyer at SEG Automotive. Bomberg was hired by SEG in 2017 before the company’s carve-out was completed, taking the reins of a global procurement network readying itself to step into the future. She sat down to discuss SEG’s sourcing, procurement and supply JUNE 2019

169

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SEG AUTOMOTIVE

“ YOU CAN BE TOUGH WHEN YOU NEGOTIATE, BUT YOU SHOULD ALWAYS BE FAIR AND TREAT PEOPLE WITH DIGNITY AND RESPECT” — Nina Bomberg, Global Lead Buyer, SEG Automotive

chain strategy going forward, the company’s plans to become a world leading provider of electrification solutions, and why bigger doesn’t always equal better. Bomberg has always enjoyed the unpredictable nature of a career in sourcing. “One day you need to rent an elephant and the next you’re finding a financial auditor,” she laughs. “I’ve always enjoyed the diversity.” Change in the procurement industry isn’t restricted to the day-to-day: over the

170

JUNE 2019

CLICK TO WATCH : ‘SEG AUTOMOTIVE CORPORATE VIDEO’ 171 past decade, Bomberg notes, the role

acknowledges that a large portion

of the supply chain executive and their

of the industry still has a long way to

department has evolved dramatically.

go in terms of supply chain evolution.

“We’ve moved from being a purely

“I joined a company in 2012 that was

cost-driven money saver to becoming

turning over multiple billions of dollars

internal consultants on a mission

every year – yet they didn’t have an

to create value for the organisa-

indirect sourcing department. The

tion,” she says. “Cost saving is

role of procurement is changing, but

definitely still a part of our role,

some companies have a longer way to

but we also focus on supply

go than others,” she says. With SEG,

security, innovation and more.”

Bomberg’s excitement continues, not

The opportunity to join a company

only to be working in a growth sourcing

that was preparing to cross

industry, but also to be part of a team

such a monumental threshold was

that is at the forefront of the supply

an enticing one for Bomberg, who

chain industry’s evolution. e uro pe .busi ne ssc hief. com

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“The biggest lesson I’ve learned at

essential to fully leverage employees’

SEG is that what goes around comes

expertise. “As global lead buyers, we are

around,” says Bomberg. “How you treat

responsible for the overall purchasing

the other side of the table is crucial. You

strategy. We’re also the ones coordinat-

can be tough when you negotiate, but

ing the commodity buyers that SEG has

you should always be fair and treat

spread around the world. We have

people with dignity and respect.”

local people doing the purchasing in

Establishing respectful, mutually-ben-

the specific countries, as they are

eficial, long term relationships between

much closer to our internal business

SEG and its suppliers is a vital aspect

partners, as well as local legislation,

of Bomberg’s role in managing the

regulations, taxation, local suppliers

company’s buying strategy. Communica-

etc. If everything was done from the

tion between the company’s high-level

central office, we would not be able to

decision makers and local buyers is

operate with the same amount of

E XE CU T I VE PRO FI LE

Nina Bomberg Nina Bomberg has a background in various Indirect roles in multi-national companies operating in different industries. Today she is the Global Lead Buyer in the Indirect Sourcing division of SEG Automotive. Their capex sourcing team is a team of seven people, spread across all regions. Currently she focuses on right-sizing processes after the company’s carve out from Robert Bosch. Her experience in multi-cultural change management and stakeholder management, as well as a motivator prove to be beneficial for this task. Bomberg is a business graduate and holds an MBA from ESCP Europe.

e uro pe .busi ne ssc hief. com

173

SEG AUTOMOTIVE

flexibility and insights,” explains Bomberg. “It’s very important that, when we implement our strategies, we align closely with our specialist departments so they understand why we do or don’t do certain things. In the sourcing space, a lot of things live and die by whether the internal business partners align with a strategy.” SEG Automotive’s strategy of communication and collaboration also applies to their suppliers. “We’ve had extensive discussions with our supply base which 174

allowed us to explain our mission of reducing global CO2 emissions, our new structures and showcase the

“ THE AUTONOMY WE HAVE NOW MEANS WE SET OUR OWN TARGETS – AND ELECTRIFICATION IS A KEY AREA OF GROWTH FOR US” — Nina Bomberg, Global Lead Buyer, SEG Automotive

JUNE 2019

additional benefits that we now bring to the table. In the past, we had many suppliers that were a good fit for the huge organization that is Bosch. Now, we develop suppliers that are perfect for SEG and our new size and speed. Very often that is a supplier we have worked with for many years, and in some cases it’s a new organisation,” she says. One of the new companies working with SEG is CHG Meridian, an IT services and leasing company from Weingarten, Germany. “Since the carve-out, we’ve had a very good relationship with CHG using their IT solutions,” Bomberg says. “Our next project will be to streamline our forklift fleet. CHG will definitely help us to align and organise it better.” Bomberg notes that SEG’s more agile business profile is conducive to both increased levels of communication and adaptability. “Instead of the complex organization of Bosch, we now have a dedicated sourcing team that serves only SEG. With increased focus, process knowledge and more direct communication, intercultural and inter-disciplinary teamwork has become much easier. This includes regular visits of the global lead buyers to the local buyers around e uro pe .busi ne ssc hief. com

175

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“ IN THE SOURCING SPACE, A LOT OF THINGS LIVE AND DIE BY WHETHER THE INTERNAL BUSINESS PARTNERS ALIGN WITH A STRATEGY” — Nina Bomberg, Global Lead Buyer, SEG Automotive

my we have now means we set our own targets – and electrification is a key area of growth for us,” emphasises Bomberg. “We have the clear goal of being a technology leader in that field as well.” SEG’s new Chinese owners reflect the increasing maturity of the electric vehicle market in the Asia Pacific region. Bomberg asserts: “China has established itself as the largest car market in the world and is driving the change towards electrification.” European demand for solutions that

the world ,” says Bomberg, adding that

reduce CO2 emissions is rising rapidly

the reduction in organizational complex-

too and SEG is anticipating a continued

ity has allowed SEG’s team to cater

surge in a market where it is already the

its sourcing practices to the unique

key player. “48V mild-hybridization in

challenges of different markets. “Now

particular will be a key technology in

it’s possible to have a supplier that only

Europe, which is set to even outpace EVs

works in Brazil but is exactly right for

in terms of market penetration. Just as

that market, whilst for the other six

with starter motors and generators

countries where we produce, we buy

before, we are a technology leader for

from someone else.”

48V, which transforms any conventional

More focused, adaptable sourcing is

internal combustion engine into an

giving SEG the ability to hone in on its

efficient mild-hybrid with minimal effort.”

long term goals: to further increase its

The company is looking to expand its

contribution to reducing CO2 emissions

portfolio and improve upon existing

from passenger cars and commercial

products at its new R&D centre under

vehicles, while also becoming a leader

construction in Changsha, China, which

in electrification solutions. “The autono-

is collaborating across continents with e uro pe .busi ne ssc hief. com

177

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“ ONE DAY YOU NEED TO RENT AN ELEPHANT AND THE NEXT YOU’RE FINDING A FINANCIAL AUDITOR” — Nina Bomberg, Global Lead Buyer, SEG Automotive

vehicles,” says Bomberg. At the same time, the company also expands its product portfolio to answer regional mobility needs. SEG’s Indian division is set to introduce an electric motor designed to power e-rickshaws. The 2kW electric motor, christened the EM 1.2-HR (high range), has been developed to cater to the growing demand for e-rickshaws across many cities in India.

the German R&D centre. “With this new

“With the capabilities and collaboration

facility, we’re able to further expand our

of our Indian and German engineering

research into powertrain solutions for the

teams, we have been able to bring the

future, especially high-voltage compo-

product from conceptualisation to reality

nents in preparation for fully electric

in a record time of one year,” said Anil

JUNE 2019

179 Kumar MR, Managing Director, SEG

confident that the company has lost

Automotive India in an interview with

none of its bargaining power when

Autocar Professional earlier this year.

it comes to its relationships with a com-

Looking to the future, Bomberg

plex supplier network. “We are a smaller

expects to be at the heart of an increas-

company now, no question. However,

ingly diverse procurement network,

we are still a US$2bn multinational

as SEG further expands its product

corporation and a global player in our

portfolio. “The automotive industry is

segment. Despite the fact that it is

facing a transformation – and SEG

not the size of Bosch anymore, SEG

Automotive will actively shape this

Automotive is still a market leader in

transition towards more efficient

its business fields and will continue

combustion engines, 48V hybrids and

to leave its mark.”

electrification,” she says. As an independent company, SEG may be more agile and focused, but Bomberg is e uro pe .busi ne ssc hief. com

180

TURKCELL: DRIVING SUPPLY CHAIN MANAGEMENT EFFICACY THROUGH TECHNOLOGY AND COMMUNICATION WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

JUSTIN BRAND

JUNE 2019

181

e uro pe .busi ne ssc hief. com

TURKCELL

Ali Türk, Executive Vice President of Supply Chain Management at Turkcell, discusses how Turkey’s largest mobile operator is driving efficiency with customers at the forefront

T 182

urkcell, the largest mobile operator in Turkey, has undergone a significant shift in its procurement and supply chain

operations driven by a radical ideological change to the business itself. “Turkcell is a unique company, a digital operator,” says Ali Türk, Executive Vice President of Supply Chain Management at the firm. “We are dealing not only with the mobile part, but also the commerce part: it’s one entity.” With a focus on establishing a high quality internal infrastructure, technology and network infrastructure, and meaningful, functional digital services, Turkcell has undergone a structural change that highlights the importance of procurement to its wider strategy. As part of supply chain management’s realignment as a strategic function, Turkcell established a dedicated procurement committee to drive positive change. Meeting every week alongside the CEO, Murat Erkan, the committee makes key JUNE 2019

183

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TURKCELL

decisions on the company’s biggest purchases. While these make up 3% of

184

follow throughout the organisation. These structural adaptations are

the firm’s purchases at large, their

bolstered by the application of

combined volume equates to 80% of

disruptive technologies, driving

the total made by Turkcell. “All of the

efficiency and transparency at Turkcell.

company’s top executives are fully

However, Türk stresses that digital

involved in these processes, and they

transformation is, to Turkcell, a tool

acknowledge and evaluate all of the

rather than a goal. “Digital transforma-

aspects of procurement investments

tion is a must to survive in our era,” he

and strategy.” Not only that, but a

says. “It enables us to focus on optimis-

unification of operations between

ing costs in a sustainable structure, to

teams has been achieved through the

increase revenues, and to increase the

adoption of agile management method-

level of quality we offer our customers.”

ologies, enabling a consistent thread for

A particular area of interest for Türk is

supply chain management strategy to

robotic process automation (RPA) and

“ Turkcell is a unique company, a digital operator” — Ali Türk, EVP Supply Chain Management, Turkcell

JUNE 2019

CLICK TO WATCH : ‘TURKCELL: RAMAZAN’A ÖZEL SALLA KAZAN PAYLAS!’ 185

the benefits it could have for internal

ICT department to drive the gradual

teams. He adds that the application of

rollout of RPA through specific

this technology will be based on what

digitalisation departments. “For

those teams themselves view as the

example, supply registration, fee

areas that would benefit most from

operation, calculation of monthly

automation, and the freeing up of staff

payments, operation of the tender

from repetitive tasks that it would

process, opening site acquisition and

enable. “We have procurement

scrap sales orders; they’re all opera-

departments, logistics departments,

tional issues and ritual issues,” says

real estate, construction and site

Türk. “Right now, we are developing

acquisition departments, and they are

some use cases and we will forward

each highlighting their requirements,”

those tasks to RPA.”

he says. Once those needs are defined, they each collaborate with Turkcell’s

In addition to its RPA ambitions, Turkcell has deployed artificial e uro pe .busi ne ssc hief. com

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TURKCELL

CLICK TO WATCH : ‘TURKCELL: RTÜRKIYE’NIN ARAMA MOTORU YAANI BIR YASINDA’ 188

intelligence (AI) technology to enable

that will streamline communications

price estimations for services and

between internal departments.

network site acquisitions. “Right now,

The chatbot stands to mitigate time spent

we are managing approximately 20,000

chasing answers to various questions

value sites and we have a huge site

across multiple teams, particularly when

acquisition team that oversees the hiring

it isn’t clear who might be best placed

of those sites,” says Türk. With AI,

to provide those answers. “We will

Turkcell is using Big Data and analytics

eliminate these unproductive elements”

to drive intelligent land acquisition,

says Türk, “and we will address our

selecting sites that offer the best value

teams to focus more on strategic

to the company: maximising efficiency

business operations.” He adds that

whilst simultaneously cutting costs. The

digitalised contracts and digital

company is also developing a supply

signatures will significantly streamline its

chain management chatbot

dealings with contractors and landlords.

JUNE 2019

Türk’s team manages around 20,000

approval from the regulators to go

contracts with landlords which, until

digital and, thanks to mobile and

now, has been done through physical

biometric signatures, the completion

copies, meaning turnaround times are

time for contract signatures will be

protracted, cargo and courier costs

decreased from 10 days to between

mount up, and there is significantly

six and 10 hours. No cargo costs,

increased risk of delays caused by lost

no courier costs, no lost documents.

or damaged paperwork. “In Turkey

The processes will be fully optimised.”

there are regulations that limited us to

Across its supply chain, Turkcell’s

using hard copies for contractual

application of disruptive technologies

documents,” says Türk. “We got

is supported by a meaningful, hands-

E XE CU T I VE PRO FI LE

189

Ali Türk Ali Türk joined Turkcell as the Senior Vice President of Supply Chain Management in May 2016 and was appointed as the Executive Vice President of Supply Chain Management in March 2017. After graduating from the Industrial Engineering Department of Istanbul Technical University in 1999, Türk completed the Istanbul Technical University Executive MBA program in 2001. Between 2002 and 2007, Türk held various management positions responsible for logistics planning, warehouse and supply chain management processes at Ülker Group Companies. He worked at Ceva Lojistik between 2007 and 2011 as Warehouse and Value Added Operations group manager. Joining Turkish Airlines in 2011 as Cargo Operations Vice President, Mr. Türk has served as its President since 2012.

e uro pe .busi ne ssc hief. com

TURKCELL

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CLICK TO WATCH : ‘TURKCELL: TEKNOLOJININ DÜNYAYI DEGISTIREBILECEGINE INANIYORUZ’ 191

on approach to vendor management that ensures their respective offerings meet Turkcell’s needs in the fullest capacity. “We regularly evaluate our suppliers’ operational, commercial and quality perspective capabilities,” says Türk. “Also, for effective vendor management, meeting regularly is crucial. I don’t expect the vendors to only come to us, but we also visit them at their own premises and facilities to help us understand how they operate.” With the added insight provided by

“ You have to change people’s perspectives. Change means that it’s changing to good, not bad” — Ali Türk, EVP Supply Chain Management, Turkcell

Turkcell, Türk notes that the key driver e uro pe .busi ne ssc hief. com

TURKCELL

of this approach is encouraging its vendors to evaluate their processes and inspire innovation. Not only that, but operational stability is also supported by this focus on establishing effective lines of communication. “At times we generate new projects which impact our business methods and processes, and every time that happens it’s known by all parties,” Türk adds. Furthermore, supplier-enabled innovation has been defined as a key performance target for each procurement specialist at the firm, ensuring that 192

innovative opportunities are actively sought whilst working with suppliers.

“ For effective vendor management, meeting regularly is crucial” — Ali Türk, EVP Supply Chain Management, Turkcell JUNE 2019

Tying everything together is an unerring commitment to effective change management. “If you want to be successful on this transformation journey, change management is the most crucial part,” enthuses Türk. “You have to change people’s perspectives. Change means changing to good, not bad. The next era should be better than before.” To drive this positive attitude to shifts in operations and the application of new technologies,

48.9mn Group subscribers in five countries

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193

Turkcell operates what Türk calls

already been approved by our boss

Supply Chain Management Boot-

to take forward,” says Türk. “We tell our

camps that bring together the talents

staff that, as we’re changing everything,

of different teams across the SCM

they have to adapt quickly, but we

spectrum at the firm. The focus is

emphasise that they are managing

primarily on generating innovative

these innovative projects. They’re

ideas and making employees a part

driving the change, and that’s crucial.”

of the transformation process, with the additional benefit of cross-functional collaboration at these events and establishing strong lines of communication between different teams. “The bootcamps have generated a lot of projects so far, and some of those have e uro pe .busi ne ssc hief. com

UILDING A ROCUREMENT EPARTMENT ROM THE ROUND UP WRITTEN BY

HARRY MENEAR PRODUCED BY

JUSTIN BRAND

194

195

APPLUS+

MONTSE EMPEZ, CHIEF PURCHASING OFFICER AT APPLUS+, TELLS THE STORY OF BUILDING THE COMPANY’S PROCUREMENT DEPARTMENT FROM THE GROUND UP, AND OF THE DIGITAL TRANSFORMATION OF ITS SUPPLY CHAIN

decade ago, the role of a procurement department and its Chief Purchasing Officer (if the role existed at all) was often

relegated to a monthly meeting of the accounting 196

department in order to briefly discuss the cheapest possible way to acquire products and services. Today, the business community has “moved on from the idea that procurement is just a cost cutting department. Now, it’s a department that adds value to the company and is capable of driving change inside the organisation,” says Montse Empez, Chief Purchasing Officer at Applus+. Founded in 1996 and headquartered in Madrid, Applus+ is one of the world’s leading testing, inspection and certification companies. It provides solutions for customers in multiple industries to ensure that their assets and products meet health and safety, quality and environmental standards and regulations. Applus+ operates in more than 70 countries and employs 22,800 people.

JUNE 2019

197

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APPLUS+

“ IT’S THE HOT TOPIC RIGHT NOW. EVERYONE IS TALKING ABOUT PROCUREMENT DIGITAL TRANSFORMATION” — Montse Empez, CPO, Applus+

Joining the company in 2011, Empez was tasked with a unique and engaging challenge: building Applus+’ procurement department from the ground up. “Since I joined the company, I have seen tremendous change in the perception of procurement and the involvement that we now have in strategic decisions. It has not been an easy path; we have had to show we’re adding value to gain that confidence,” Empez recalls. Touching on the long-term digital transformation of Applus+ procurement department, Empez discusses her journey so far,

198

how the growing importance of the procurement department has led to increased challenges, and the ways in which digital transformation is instrumental in overcoming them. The pervasive digital transformation of the business landscape is, Empez asserts, the touchstone by which every procurement department will be judged by history. “It’s the hot topic right now. Everyone is talking about procurement digital transformation,” she notes. “We are trying to integrate all the companies to access data via either API or web services, so that we can gain access to information JUNE 2019

CLICK TO WATCH : ‘APPLUS+ BRANDCLIP VIDEO’ 199 incredibly quickly. That sort of imple-

made was to internalise that function,”

mentation will hopefully allow us to

Empez recounts.

be proactive rather than reactive.”

Outside of Spain, she quickly

Gathering data from the 70 countries

discovered that Applus+ operations in

across which Applus+ operates has

most countries lacked a procurement

been no mean feat for Empez, who

process, and those that did have one

faced initial challenges at home and

weren’t standardised. “We had no

abroad. “When I joined Applus+, the

spend visibility and no global deal or

first thing I found out was that there

agreement in place for our fleet.

were no procurement specialists in

Applus+ has over 5,000 vehicles,

Spain. The company had an external

which represent one of the most

procurement department that was just

important requests for proposal (RFPs)

processing local purchase orders and

in the company, so that was the first

invoices, not doing any procurement as

thing I tackled,” says Empez. After

such. So, one of the first decisions I

reworking Applus+ fleet management, e uro pe .busi ne ssc hief. com

APPLUS+

200

“ I’D LIKE APPLUS TO BE AHEAD OF THE MARKET, NO MATTER WHAT KIND OF CHANGES ARISE” — Montse Empez, CPO, Applus+

JUNE 2019

201

e uro pe .busi ne ssc hief. com

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“ WITH THE NEW SYSTEM, I STARTED GETTING INFORMATION THAT MEANT WE COULD MAKE SMARTER DECISIONS AND ENSURE COMPLIANCE” — Montse Empez, CPO, Applus+

ensure compliance.” Now, Applus+ is in the process of migrating its procurement department again, this time to SAP Ariba’s service. “Ariba is a much more robust system than our previous deployment,” Empez explains. “It gives us additional advantages with regards to our procure-to-pay process, and it allows us to implement rules with procurement to be more consistently compliant. We are very satisfied with the Ariba deployment and what we can get out of the system.” Empez maintains that, regardless of the solutions in use, one of the greatest challenges of the digital transformation of procurement is an increased focus

Empez worked on developing procure-

on compliance. “Procurement is

ment policies to demonstrate which

coming under more and more scrutiny,”

software solutions system would best

she says. “There are increased controls

suit the company’s needs. “A year after

and compliance standards on the

I joined the company, I raised the

procurement process now, especially

department’s needs with the board of

relating to things like Corporate Social

directors, and they agreed to launch an

Responsibility (CSR). Procurement is

RFP. I’m proud to say that six years

something that can, if done poorly,

after the first implementation, we now

really hurt a company’s reputation.”

have 13 countries using it. It’s not

Sustainable practice across the

complete, but it’s a great start,” says

procurement department is another

Empez. “With the new system, I started

avenue through which responsibility

getting information that meant we

increases alongside importance.

could make smarter decisions and

“Sustainability in the supply chain e uroa pe nz .busi ne ssc h hief. ief. com

203

APPLUS+

204

is taken much more seriously than 10 years ago,” says Empez. “We’re doing a lot of things: we want to make sure that we work with suppliers that are

€1,676mn Approximate revenue

sustainable in the way they operate, so we have a pretty strict evaluation and qualification process. The same goes for our products.” Looking to the future, Empez sees emerging technologies like Big Data, prescriptive analytics and the Internet of Things (IoT) as key to overcoming the challenges facing procurement departments. However, she observes, JUNE 2019

1996

Year founded

22,800 Approximate number of employees

APPLUS+ DIVISIONS

•E NERGY & INDUSTRY DIVISION: leading global provider of non-destructive testing, inspection, quality assurance and quality control, project management, vendor surveillance, certification, asset integrity services and technical staffing services. •L ABORATORIES DIVISION: testing, certification and engineering services to improve product competitiveness and promote innovation. The Division operates a network of multidisciplinary laboratories in Europe, Asia and North America •A UTOMOTIVE DIVISION: global leading provider of statutory vehicle inspection services in several markets in which the periodic vehicle inspection is mandatory for the compliance of safety and environmental standards.

•D IADA DIVISION: IDIADA A.T. (80% owned by Applus+ and 20% by the Generalitat of Catalonia) has since 1999 been operating under an exclusive contract at the 331-hectare technology centre near Barcelona (owned by the Generalitat of Catalonia), which includes the most comprehensive independent proving ground, testing laboratories and vehicle development centre for motor vehicles in Europe. The contract runs until 2024 and is renewable until 2049. The Division provides services to the world’s leading vehicle manufacturers for new product development activities in design, engineering, testing and homologation.

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APPLUS+

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“ ARIBA GIVES US ADDITIONAL ADVANTAGES WITH REGARDS TO OUR PROCURE-TO-PAY PROCESS” — Montse Empez, CPO, Applus+

while the majority of companies are, in some way, adopting artificial intelligence (AI) and predictive analytics, this investment is not being seen enough in the supply chain and procurement departments. “These technologies will play a significant role in procurement. My question is ‘when?’ I don’t think the market is ready yet. Applus+ has implemented AI tools in its systems for checking things like the procure-to-pay process. But the reality is that only maybe 1% of our suppliers are ready for

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an AI integration.” This is something

transformation. Of course, there will

that Applus+ is putting a great deal

always be new things,” she laughs.

of emphasis on going forward. “In all

“I’d like Applus+ to be ahead of the

our new RFPs we’re looking for digital

market, no matter what kind of changes

players,” Empez explains. “Through this

arise. By next year, I hope we have a

intelligence, we can definitely improve

consolidated structure and are ready to

efficiency and cost.”

take on new challenges and projects.”

Empez relishes the ongoing challenge and dynamic nature of her role. “Right now is a fantastic time, because my role and department are changing the organisation. By 2020, I hope we will finish our department’s digital e uro pe .busi ne ssc hief. com

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Undergoing a digital transformation in Germanyâ€™s hotel industry WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

MANUEL NAVARRO

JUNE 2019

209

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F I D E L I S H O S P I TA L I T Y

Sascha Dalig, Chief COO at Fidelis, discusses how the company is putting its customers at the forefront of decisions amidst digital transformation in the hotel industry

ith technology redefining the way companies operate, particularly in the hotel industry, it’s become vital to embrace the latest

trends as part of a digital transformation to maintain an edge over rivals in the field. 210

As a manager of a number of key Ibis hotel brands under its parent organisation AccorHotels in a franchise agreement, Fidelis Hospitality oversees the development of its hotels through a firm customer centric approach. Sascha Dalig, Chief Operating Officer (COO) at Fidelis, believes that by operating with its customers at the forefront of decision making, it has enabled his company to thrive in the industry. “Our customers are extremely important. We’re always looking out for their comments to understand where we can do better,” says Dalig. “It’s up to us to put ourselves in the shoes of the guests and ask: what would I expect if I was staying here? If you’re able to set this point of view within the mindset of your team, then it’s an extremely successful mentality to have.” Dalig worked in a variety of different positions in the hospitality sector across Germany, including JUNE 2019

211

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F I D E L I S H O S P I TA L I T Y

“Our customers are extremely important. We’re always looking out for their comments to understand where we can do better” — Sascha Dalig, Chief Operating Officer 212

JUNE 2019

213 spending time as a Director of Revenue

the IBIS Hotel in Landshut, Fidelis has

Management and Vice President

continued the collaboration with Häfele,

Operations Franchise before moving

an international family owned business

into his current role as COO in March

with a comprehensive range of products

2019. “My background has completely

and services. “We love to work with

revolved around hotels, from an appren-

Häfele and they’ve really emerged in

ticeship to senior management position.

the hospitality market. It’s a strategic

People always tell me that it’s an extraor-

partnership for us because it’s a partner

dinary way to go because I didn’t study

that’s running a secure system and also

or go to university – it’s all been hard

enabling the connectivity to Accor,”

work and gaining experience to reach

says Dalig. “Häfele are putting a lot of

this position.”

effort in to selling us the best solution and it’s that sort of support we look for

UTILISING TECHNOLOGY In order to choose the right partner for electronic access control system for

when choosing a partner to work with.” Fidelis operates with three property management systems – Oracle Opera, e uro pe .busi ne ssc hief. com

360° COMPREHENSIVE HOTEL SOLUTIONS Häfele – Your partner for doors, furnishings and access control systems. With a diverse range of systems and products for the hotel sector, Häfele offers comprehensive solutions facilitating the effortless realization of your hotel concepts. This means that our company is a valuable source of inspiration for the hotel business: from an international assortment of hotel room articles, harmonized as if from one cast, to the hotel room door designed as a complete system, the Dialock electronic access control system, through to functional furniture solutions such as the Teleletto II folding bed and the bathroom mirror with light, demister and sound all in one unit – and much, much more. Häfele is an internationally organized

corporate group with headquarters in Nagold, Germany. The family owned and operated business was founded in 1923 and today serves the furniture industry, architects, planners, joiners/cabinet makers as well as dealers in over 150 countries around the world with furniture fittings and architectural hardware, electronic access control systems and LED light. Häfele develops and produces in Germany and Hungary. In the 2018 financial year the Häfele Group achieved exports of 80% with over 7,800 employees in 37 subsidiaries and numerous additional dealerships around the world and revenue of over 1.4 billion Euros.

Additional information and references:

Häfele Project Business Worldwide (PWW) Adolf-Häfele-Straße 1 D-72202 Nagold Phone: +49 (0)7452 95 1111 EMail: projects@hafele.com www.hafele.com

01 02 03 04 05 06 07 08 09

Hotel InterContinental, CH-Davos Fairmont Nile City, EGY-Cairo Hilton Pattaya, TH-Pattaya The Ritz-Carlton Chengdu, CN-Chengdu Hotel ibis Styles Nagold, D-Nagold Falkensteiner Hotel & Spa Jesolo, I-Lido di Jesolo JW Marriott Hotel Hanoi, VN-Hanoi JW Marriott Marquis Hotel Dubai, VAE-Dubai Hotel ibis Landshut City, D-Landshut

F I D E L I S H O S P I TA L I T Y

216

Protel and FOLS. Dalig believes these

device. One of the guests’ biggest

systems have allowed the company’s

concerns is about how they can settle

processes to take a step forward during

their bills without a reception desk.

its digital transformation. “In our latest

However, that is easily remedied

opening we don’t have a reception

because all they need to do is submit

anymore because we have enabled

an email address when they check in

checking in on a mobile device,” explains

and the invoice is emailed when they

Dalig. “Initially, it was quite a strange

check out.”

experience for the guests. For instance,

In order to allow guests a more stress-

I saw a guest arrive and ask where the

free stay from the beginning, Accor’s

reception was and he couldn’t believe

software has expanded to enabling its

that you could check-in via a smartphone

guests to check in prior to arrival at the

JUNE 2019

hotel. “As soon as a guest arrives, all that’s left to do is to collect their key,” Dalig explains. “It’s a huge step forward because guests don’t need to sign on paper anymore and we have all of the information we need during the online check in. Guests can simply sign by using fingertips on a mobile device and it’s done. It’s really sped up the whole process.” With Fidelis embracing technology that Accor originally implemented, Dalig stresses how important it is that new processes are strategic and purposeful. “Launching new technology is based around lots of trial and error. For every tool you introduce, it’s important to see the benefit for the team and the customer. E XE CU T I VE PRO FI LE

Sascha Dalig Dalig is vastly experienced in the hospitality sector, having worked in a variety of roles across Germany. Beginning his career with an apprenticeship at Best Western, Dalig worked his way through a range of positions in the hotel sector with jobs such as Assistant Manager, Revenue Manager and Vice President Franchise Operations at Accor Hotels before moving into his current role of Chief Operating Officer at Fidelis Hospitality in March 2019.

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F I D E L I S H O S P I TA L I T Y

218

“ Häfele are putting a lot of effort into selling us the best solution and it’s that sort of support we look for when choosing a partner to work with” — Sascha Dalig, Chief Operating Officer

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F I D E L I S H O S P I TA L I T Y

220

I believe we can roll out 10 or 15 tools

managers that overlook what resources

every year if we wanted to, but we have

are being used,” he explains. “A sustain-

to ask ourselves, why are we doing this?

ability journey starts with small things

If you can’t answer that question then

such as checking to see how many news-

there’s no point implementing new

papers are in the hotel and how many

technology for the sake of it.”

pieces of paper are thrown away each day. Through Accor, we have the oppor-

REMAINING SUSTAINABLE

tunity to take part in the Planet 21 pro-

With the future in mind, Dalig has clear

gramme, which is a piece of software

ideas on how the company can remain

that monitors all your resources, energy

sustainable. “You have to be sure of the

and training of staff, and is considered

resources you use. We have hotel

the complete sustainability tool.”

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221

“One of the next advancements that

the decision to build a new hotel if we

we hope to implement is the ability to

don’t see the rentability of it. There’s

open rooms with an NFC chip or via

no point building one in a city such as

mobile devices which will negate the

London or New York just because

need for a room key. It could be the

we want a hotel in those cities. We must

next major step to evolve this level of

continue to calculate the risks to

technology and we hope through impl-

ensure there will always be a return

ementing these processes it will enable

on investment.”

us to become even more customercentric,” summarises Dalig. “We want to continue to grow but it’s vital this happens in a smooth way. We won’t take e uro pe .busi ne ssc hief. com

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