BC USA Aug 2018

HHH USA

EDITION

AUGUST 2018 www.businesschief.com

TRADINGENE Tim Seymour’s newest crypto adventure

Expanding Territory Creating a technology-led business culture

UCSF Medical Center

AVAYA

Communications in the digital age

City Focus NEW YORK

TOP 10

CEOs in the USA

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FOREWORD

elcome to the August issue of the USA edition of Business Chief.

Our cover feature this month is an interview with Chris Hall, VP Global Information Technology at KEMET Electronics Corporation. Hall offers insight into how IT has become a core business function and gives detail on a transformation of the electronics giant’s digital infrastructure.

The emergence of cryptocurrency has grown apace, leading investors and innovators to look at ways in which to transform the industry. Olivia Minnock caught up with leading financial expert Tim Seymour to find out why he feels algo-trading and blockchain technology are built to last.

This month’s issue also sees us look at how a huge proportion of the global population still lacks access to proper banking facilities. With this in mind, we speak with Juvo’s Chief Data Officer, Aristotle Socrates and how the business aims to offer financial inclusion for all through the growth of mobile technology.

Our City Focus this month is New York City and we also list the top 10 CEOs in the country, as first revealed by the New York Times earlier this year.

Finally, our exclusive digital reports feature interviews with, on top of KEMET, Avaya, SiteOne Landscape Supply and UCSF.

W

Enjoy the issue!

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03

CONTENTS

10

24

36

From Fast Money to fast trading: Tim Seymour’s latest crypto adventure

46 City Focus

NEW YORK

56 Top 10 CEOs in the

USA

CONTENTS

64 UCSF

74 AVAYA

86 Rodan + Fields

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 Subscribe FREE Click tofor read

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H O M E TO I N D U ST RY– L E AD I N G D I G ITAL B U S I N ES S P L AT FO R M S

HAVE YOU SEEN OUR OTHER TITLES?

EXPANDING TERRITORY

Vision aids technology at SiteOne Landscape Supply

SiteOne Landscape Supply is preparing itself to better serve the changing face of North America by adopting a new technology-led culture

WRIT TEN BY

JOHN O’HANLON PRODUCED BY

ANDY TURNER

S I T E O N E L A N D S C A P E S U P P LY

O

n March 2014 Sean Kramer was appointed CIO of what was then John Deere Landscapes, two years later, moving home and

family from Detroit to Roswell, Georgia. A big step for someone whose career that far had seen him rise to senior IT leadership roles at iconic motor industry giants like DaimlerChrysler and, most recently, Volkswagen.

But the last four years have been a time of unbelievable change for North America’s leading wholesale distributor of landscape supplies: he was keen to apply his skills to the challenge of maintaining John Deere’s reputation for integrity while leveraging IT to deliver outstanding customer service levels.

12

In 2014 John Deere sold a majority interest in the business to private equity investor Clayton Dubilier & Rice (CDR) and at the time not only Kramer came on board but also the present CEO Doug Black. In October 2015 the company changed its name to SiteOne Landscape Supply, launching its new identity at the Green Industry & Equipment (GIE+) Expo in 2016 at Louisville, Kentucky following its IPO on the NYSE in May that year.

With over 500 locations in the USA and Canada, SiteOne is by a long way the largest wholesale distributor of landscape supplies for ‘green industry’ professionals in North America. It sells irrigation supplies, fertilizer and control products, landscape accessories, nursery goods, hardscapes, and outdoor lighting, along with a broad array of services designed to help landscaping contractors operate and grow their AUGUST 2018

TECHNOLOGY

BIO

Sean Kramer is a senior executive who is transforming business processes and leading digital transformation through innovative technologies and data analytics. As CIO at SiteOne Landscape Supply, he leads capacity planning for a rapidly growing company, manages applications (including ERP, POS, website) as well as infrastructure, network connectivity, integrations w/cloud systems and the security program. Sean oversees a team of seven IT Directors.

13

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S I T E O N E L A N D S C A P E S U P P LY

14

“ On the IT side we had to rebrand all our systems and forms down to the logos on the laptops” — Sean Kramer, CIO

businesses. Over four years, the company

THE PRIOR STATE CHALLENGE

has made 27 acquisitions, from single

That level of expansion would not have

location businesses to groups with up to

been possible using the IT infrastructure

33 branches, expanding product lines, for

Sean Kramer found in place when he

example in nursery and hardscape

arrived: “We took over a business that had

products, and enhancing each branch

a lot of operational instability. Basic IT

with access to the full SiteOne product

services such as email and point-of-sale

range.

(POS) were very unreliable: we were

AUGUST 2018

TECHNOLOGY

15

running on hardware that should have

strategic partnership with Microsoft,

been retired years before and our server

establishing that its Dynamics AX platform

room was in an office in Michigan. My first

would be, over the long term, the most

year had to be focused on operational

effective backbone ERP to support the

stability.� A legacy ERP system dating back

business as it grew.

to 1986 did not work with the POS system,

Deployment of the new system took a

so retiring that was a priority: Kramer and

full year, and at the same time the business

his team worked hard to establish a

was grappling with rebranding from John

w w w. b u s i n e s s c h i e f. c o m

S I T E O N E L A N D S C A P E S U P P LY

Deere to SiteOne Landscape Supply across the entire organization. “There was massive change management challenge,” he recalls.

“Our operational teams had to change the imaging in the stores, delivery trucks and signage. On the IT side we had to rebrand all our systems and forms down to the logos on the laptops.”

At the same time, the company was preparing for an IPO – as anyone who has been through this process will appreciate a public 16

company has to work in a very different regulatory environment from a private business. Readying the systems for compliance best practice presented a major challenge for the IT team, but there were yet other large pieces of the jigsaw that could not be neglected.

SIMPLE SOLUTIONS FOR COMPLEX ISSUES As the outward face of the business the company website is just as important as the name over the door of the branch office. A new website was launched in 2018 after two years of development – and it’s still a AUGUST 2018

TECHNOLOGY

work in progress, he emphasizes. “Optimizing our e-commerce capability is the driver here. For example we put in a new pricing engine with real B2B capability – after all we had to make sure that our pricing was consistent not only at the point of sale but across the website as well.” To help customize and optimize Dynamics AX to manage trade and revenue management complexities, he brought in a new technology from FlintFox – again after exhaustive consideration of available packages.

Integration of the diverse acquisitions the company would be making threw up issues that could adversely affect the SiteOne brand.

Product duplication was a case in point he recalls, where the company that was being integrated had its own product listing, pricing and customer data that could frequently overlap and conflict with SiteOne’s existing record of the same products and customers.

E-commerce being seen as an important service enhancement for SiteOne’s customers going forward, he selected integration platform as a service (iPaaS) Dell Boomi to manage the integration layer and the SAP Hybris platform, a cloud-based suite of highly integrated products for online selling. “Hybris gives our customers the ability to order products online for either delivery or pick-up, as well as to create lists for commonly purchased products. We were fortunate to have Dave Brower (VP of Marketing) and Colleen w w w. b u s i n e s s c h i e f. c o m

17

S I T E O N E L A N D S C A P E S U P P LY

Romero (Director of Digital Marketing) join our team and help lead this implementation. They have a track record of launching successful ecommerce platforms and made sure we had our bases covered.”

The problem of data management was addressed by partnering with Information Builders to implement Omni-Gen, a single platform for generating applications combining data integration, data quality, and master data management. Omni-Gen has reduced confusion when acquired businesses are integrated and helped expedite the process. SiteOne uses the platform to govern product lines and related 18

variables such as color, size and texture. It also helps to standardize the customer data to ensure it’s consistent across the board. “With ecommerce , we can provide an efficient system for our customers to order that they haven’t had before.

We’re excited to partner with them on how to make the system even better going forward. With e-commerce working for us, we are now able to turn our attention to a mobile app focused on improving the efficiency of inventory management in the branch, as well as checking out customers quickly to allow them to get to the job site faster and save labor cost. “

SUCCESS THROUGH STRONG COLLABORATION As a wholesale distributor, SiteOne lives according to how well it satisfies its customers.

AUGUST 2018

“Advanced analytics is an opportunity for us to further enhance our 360-degree view of the customer” — Sean Kramer, CIO

TECHNOLOGY

19

When it came to restructuring the IT

systems each business unit leverages to

department to support future growth and

run its core business. “This close

build more capabilities, Kramer and his

partnership with our functional teams is

manager , Executive Vice President Ross

part of our secret sauce.” says Kramer.

Anker, felt it was imperative to align the

Sean also established an “Enterprise

application development team with the

Services” side of the department which

business units they support. He broke his

handles among other functions the

application teams into four different

service desk, end-user computing,

groups: Sales & Marketing, Supply Chain,

infrastructure & technology, and cyber

Finance & Accounting and Acquisition

security. Last year, they migrated their

Integration. Each is led by a Director well

data center out of that office in Michigan

versed in the business processes and

and into two well-established co-location w w w. b u s i n e s s c h i e f. c o m

S I T E O N E L A N D S C A P E S U P P LY

20

AUGUST 2018

TECHNOLOGY

21 sites. Their security program has continued to evolve. Starting from scratch at the beginning of his tenure, SiteOne’s Chief Information Security Officer, David Black, has brought in technology and processes to help combat vulnerabilities daily. As the team looks to the future, SiteOne partners with many security firms to proactively address new risks when they surface.

THE TEAMS THAT DELIVER He personally interviews every new member of his team. “I want to know that they understand our culture, and that they hear it from me.” He has not found it hard to attract people hungry to work at a fast-growing company that is bringing in new

“HYBRIS GIVES OUR CUSTOMERS THE ABILITY TO ORDER PRODUCTS ONLINE FOR EITHER DELIVERY OR PICK-UP, AS WELL AS TO CREATE LISTS FOR COMMONLY PURCHASED PRODUCTS” — Sean Kramer, CIO

w w w. b u s i n e s s c h i e f. c o m

Solutions, Resources and Products, we are IT.

iConnectX www.iconnectx.com www.v2soft.com

info@v2soft.com

866-9-V2SOFT

qwik.events

technology. True, he says, to this point it has been mainly what he calls ‘foundational technology’ driving the functionality of Dynamics with partners like FlintFox, Hybris and ServiceNow, but the team realizes that they will soon focus on enhancing customers’ ecommerce experience and evaluating new technology that can be put into the hands of these customers to improve their business processes. “Like everyone else, SiteOne Landscape Supply.

Stronger Together.

we want to further develop our analytical capabilities. You see it in all areas. I saw it in the automotive industry: advanced analytics is an opportunity for us to further enhance our 360-degree view of the customer. The landscape industry can be impacted by many different factors - weather, construction, etc. As

AUGUST 2018

TECHNOLOGY

we expand our product offering, this

He doesn’t regret the move from

analytical data will show correlation

Detroit to Roswell either. He does

with the desires of the local market.”

prefer the Georgia weather, but what

IT at SiteOne is essential to deliver-

inspired him more was the constant

ing the corporate strategy, which Sean

support he has had from Doug Black,

Kramer summarizes as establishing a

Ross Anker and the senior leadership

full product line offering in every major

team. “We have had tremendous

market for the landscape contractor in

support from our CEO and the

North America. “We have to make sure

executive leadership. I have never

that we continue to be the best

worked anywhere where we’ve had the

wholesaler that the landscape

teamwork and the support that the

contractor has ever seen. We want to

technology department has received

stay ahead of the curve in terms of

here.” Without that support, he

technology, making sure the customer

concludes, he couldn’t have moved the

experience is world-class in itself – and

state of SiteOne’s IT from low tech on

head and shoulders above the rest of

life support, to being a real driver for

the industry!”

future growth.

w w w. b u s i n e s s c h i e f. c o m

23

LEADERSHIP

24

AUGUST 2018

From Fast Money to fast trading: Tim Seymour’s latest crypto adventure Tradingene could well be the future of trading, using algorithms that can invest cryptocurrencies to turn a profit. Business Chief caught up with Tim Seymour to find out why he feels algo-trading and blockchain technology are built to last.

25

WRITTEN BY

OLIVIA MINNOCK

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LEADERSHIP

T

im Seymour is a famil-

the guests we chat with on a daily

iar face to many

basis, from the world’s most

across the US as part

powerful CEOs and hedge fund

of CNBC’s Fast Money show,

managers, to the brightest, off-

a post-market program for

the-run minds,” he adds.

investors, CEOs, traders and

26

Seymour has also been a man-

analysts which he has been

aging partner at Triogem asset

involved with for over a decade.

management, a hedge fund and

Since 2007, Fast Money has

wealth management firm, since

been regularly broadcast across

2008, and last year founded Sey-

the US as well as in Asia. “The

mour Asset Management, which

show follows the news of the day

offers wealth and investment

and gives the audience a chance

management services for family

to condense down a complicated,

offices and high net-worth individ-

broad reaching trading day,” says

uals. “After over 20 years as

Seymour. “It’s informative but fun;

a trader and fund manager where

earnest in its approach without

my clients were the world’s larg-

taking itself too seriously.”

est institutional investors, I

Overall, Seymour boasts 19

wanted to work with a broader

years of experience in global and

base of clients, using my experi-

emerging market investment as

ence across multiple asset

a hedge fund manager and trader

classes and strategies to map out

across multiple asset markets.

their financial culture.”

At Fast Money, he is able to view markets through a global lens

TRADINGENE

and focuses on political and

Now, Seymour is involved in a new

technical analysis to look at trad-

venture – investment in the fast-

ing and investment opportunities.

moving cryptocurrency space.

“Clearly the best thing about

As of this year, he has taken on the

being a part of the Fast Money

role of investment advisor at

team is the quality and breadth of

Tradingene, a marketplace for

AUGUST 2018

27

w w w. b u s i n e s s c h i e f. c o m

LEADERSHIP

trading algorithms. “At its core,

“Algorithms send signals to inves-

Tradingene plans to create a new

tors’ existing accounts at their

available financial instrument –

broker or on an exchange, making

trading algorithms.” On the

the addition of algorithms to their

platform, investors can not only

portfolios simple and low risk,”

choose but also adjust algorithms

says Seymour. “When co-founder

to fit their risk return preferences

Daniel Wolfe told me about the

and pay developers only in case

Tradingene platform and plans to

of positive returns. For algorithm

make trading algorithms available

creators, Tradingene is a good

to the broader investment commu-

place to do all: develop, back-test

nity, I was very interested. Most

and raise capital.

investors are aware of the outsized

“By working with both investors 28

returns being generated by the

and developers, Tradingene can

algorithm-driven funds like Bridge-

set standards and benchmarks

water and Citadel, but what’s

for algorithmic trading,” adds Sey-

lacking is the capacity to build,

mour. Algo-trading involves

back-test and implement algo-

programming machines to follow

rithms in-house. Tradingene offers

a set of instructions to trade in

an elegant solution,” he explains.

a way that will generate profit.

While the idea of trading with

Moreover, Tradingene uses

algorithms may seem new to

machine learning technologies to

many investors, for Seymour the

enhance algorithm performance

speed, efficiency and scientific

and show even better results.

approach of algo-trading makes

Tradingene is launching a mar-

perfect sense. “It’s clear that trad-

ketplace to allow investors to learn

ing without emotion and according

about algorithms, as well as evalu-

to a rules-based approach is

ate and choose the most suitable

something many investors can

method for their own portfolio.

benefit from to improve upon their

AUGUST 2018

“ Most investors are aware of the outsized returns being generated by the algorithm-driven funds like Bridgewater and Citadel, but what’s lacking is the capacity to build, back-test and implement algorithms in-house. Tradingene offers an elegant solution” — Tim Seymour, Investment Advisor, Tradingene

existing core investment themes and analysis,” he emphasizes. But is it time for humans to give way to machines altogether? “We do not believe all trading will eventually be exclusively algo-generated,” Seymour clarifies, “but there is significant scope for making algorithms a larger portion of the investment landscape.”

THE RISE OF CRYPTOCURRENCY While algorithm trading goes on in the finance space, Tradingene’s use of algorithms to trade cryptocurrency is as new as the digital currency itself. While many were skeptical about the rise of Bitcoin, the technology behind digital tokens is doubtless here to stay, and popularity of ICOs and crypto investment hasn’t waned despite various regulatory issues. “Cryptocurrency is attractive to global investors for many reasons,” says Seymour. “First, for investors in economies with currencies less stable than the US dollar, cryptocur-

w w w. b u s i n e s s c h i e f. c o m

29

LEADERSHIP

rency offers a way to protect savings from currency devaluation as well as a path to investing in assets.” Seymour is also of the opinion that blockchain platforms offer a welcome change from the traditional offerings of a stock exchange. “It seems to me that the decentralization at the core of blockchain is interesting to those worried about a repeat of the financial crises driven by large, centralized institutions on Wall Street and elsewhere.”

Investing in an ICO carries risk, but for Seymour it’s important to analyze 30

the risk of any investment. “Any time investors begin to trade or invest in a new asset class there are risks. They may not understand all of the aspects

“There is significant scope for making algorithms a larger portion of the investment landscape” — Tim Seymour, Investment Advisor, Tradingene

of the instruments and the market they are entering. For those taking the plunge into cryptocurrencies, the risks are exacerbated by the incredible volatility in the markets.” He also points out that unlike the ‘closing bell’ CNBC reports on, crypto never sleeps.

“Cryptocurrency trades 24/7, so investors can face losses even while they sleep. Algorithms never sleep so they can

AUGUST 2018

31

trade out of markets when they begin falling at any point.”

BLOCKCHAIN – BUILT TO LAST? As Seymour describes it, Blockchain is successful because it ‘cuts out the middleman’.

“It is so popular because of its transparency, accuracy and cost reduction by cutting out third parties. Each transaction, or ‘block’, is recorded and transparent and then as the transaction is validated, it forms a ‘chain’ or network for approval. As the block is added w w w. b u s i n e s s c h i e f. c o m

LEADERSHIP

“Blockchain and cryptocurrency are going to change the world, especially the world of finance and banking. I am convinced that the transformative nature of blockchain will have a substantial, sustained and enduring impact” 32

— Tim Seymour, Investment Advisor, Tradingene

to the chain, a permanent and transparent ledger is kept. We can see fund transfers and vote casting all happening with blockchain in the future.

“Of course, there are challenges ahead,” Seymour adds, pointing to regulatory issues and the complex technology involved. “But it’s the future – no doubt about that.

Blockchain and cryptocurrency are going to change the world, especially the world of finance and banking. I am convinced that the transformative nature of blockchain will have a substantial, sustained and enduring impact on our world and that this will lead to the growing importance of tokens as a valuable, if volatile, asset class. I can see how whole industries – not least the financial services industry – will be disrupted, providing an opportunity for many to profit by finding ways to participate in the disruption. I can see, too, that this disruption will bring huge benefits to humans all over the world, particularly those who are

AUGUST 2018

33

underserved by financial institutions

of trading algorithms as an invest-

and lack access both to the basic

ment product on the broader market,

financial instruments so central to

from hedge funds to family offices

modern Western life and to sources of

to individuals. I see Tradingene as

capital to build and grow businesses.�

the future of trading. Algorithmic

As investment advisor, Seymour

trading is a game changer and

is now on a mission to make algo-

investors will be drawn to its trans-

trading more commonplace. “My

parency and accessibility.�

goals are to help popularize the use w w w. b u s i n e s s c h i e f. c o m

We deliver you the stories that matter…

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H O M E TO I N D U ST RY– L E AD I N G D I G ITAL B U S I N ES S P L AT FO R M S

“ We recently worked with BizClik Media on an article which characterizes and explains the total value that Kudu Supply Chain has on company growth plans.

From start to the finish, it was a pleasure working with the BizClik team. The feedback we have received from different audience groups on the article was phenomenal.

It has attracted a lot of interest and attention to our company, our growth plans and has definitely created additional value to what we are trying to achieve.”

– Murat Ungun, Senior VP Supply Chain Kudu Corp

HAVE YOU SEEN OUR OTHER TITLES?

TECHNOLOGY

36

Mobile tech for the

underban WRITTEN BY

AUGUST 2018

OLIVIA MINNOCK

Juvo aims to offer financial inclusion for all by creating financial identities and credit history for those in underbanked communities. This has been made possible by the growth of mobile, as Business Chief found out

37

nked w w w. b u s i n e s s c h i e f. c o m

TECHNOLOGY

I

n an increasingly digitalised world, a huge proportion of the global population still lacks access to proper banking facilities.

Without the benefit of plastic or mobile apps, building up a digital identity and credit history can be near impossible. “Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded,” explains Aristotle Socrates, Chief Data Officer. “We partner with mobile network operators to reach these billions of people – many of whom are in cashbased economies.”

Juvo combines consumer internet, predictive

38

algorithms and modern mechanics to implement a data-science based ‘Identity Scoring’ system to augment a credit score, which would otherwise be decided from the top down, but instead is made via pre or post mobile payments, i.e. from the bottom up. Essentially, Juvo allows people without a credit score to build up a credit history, reaching towards its goal to ‘empower the billions of unbanked people in the world to create financial identities and access financial services’.

The company’s Identity Scoring service uses a combination of data science, machine learning and mechanics to create identities for those who don’t have a credit history through prepaid mobile accounts, allowing users to build up an identity and use banking options they may not have had before. The company was founded in 2014 and AUGUST 2018

launched its service publicly in 2016, having since grown from 100mn to 500mn users.

The company now employs 70 people and has enabled over 400mn transactions to date, boasting 1mn active subscribers per day. Juvo operates across 25 countries in North and South America, Europe and Asia, working with partners that include Sprint, Telefonica and Deutsche Telekom.

“We give consumers the choice, effectively, of being a post-paid user vs a pre-paid user.

We save people trips to the top-up station, which saves them time. I think every human being in the world understands the value of time,” Socrates explains.

From astrophysics to fintech Socrates trained as a theoretical astrophysicist but is now becoming more of a technologist.

“My general approach to tackling quantitative problems remains strongly informed by my past life as an astrophysicist.” He moved further into the tech space in 2015 when he joined Juvo as Chief Data Scientist. “The field of data science was heating up, and it seemed like a promising place to explore and come up with interesting ideas. After speaking with founder Steve Polsky, I thought Juvo was the best idea I had ever heard, at least in Silicon Valley.” Socrates describes the move as a risk, since Juvo was then just a startup with 10 employees but adds that this was actually w w w. b u s i n e s s c h i e f. c o m

39

TECHNOLOGY

a selling point. “I was driven by the idea itself, and the opportunity of being able to create something significant from scratch.”

It is clear the data scientist strongly believes in Juvo’s central mission to develop financial service access to the 3bn people in the world who are underbanked. “The only way to accelerate the placement of those people into a modern financial system is by building a credit or financial knowledge base atop of, and across, multiple 40

operators. And that’s effectively what we’re doing.”

Data Science in finance In his role as Chief Data Scientist,

having people with some form of scientific experi-

Socrates has a wide scope of

ence of training – from either academia or a tech

responsibilities. “The term ‘data

company – gives an additional boost in capacity

scientist’ is a bit funny since there’s

in various areas of work and ideation.”

no science without data,” he muses.

Socrates adds that while many companies use

“Data Science means different

data science to support other departments

things at different companies.”

through creating algorithms, Juvo is different. “At

However, Socrates is keenly aware

Juvo, our Data Science function is a lot broader,

that the importance of data scientist

which is understandable given our mission. In

is becoming increasing recognised

addition to our core function, we do some

by many businesses, particularly at

engineering, product management, partnership

a time of rapid digitisation. “Every-

management and even sales and business

one seems to be discovering that

development,” he explains.

AUGUST 2018

“ Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded” — Aristotle Socrates, Director of Data Science, Juvo

Mission possible?

the ability generate huge meaningful amounts of

In order to allow users to build up a

transaction data. However, they are limited in

financial identity via mobile, it has

their ability to act on it. This requires data science

been necessary to partner with

to play an organisational role that is relatively

some of the largest telecoms

expansive on the organisational spectrum.” Juvo

carriers in emerging markets. “Our

will further utilise these carriers to build on its

mission is to create a mechanism for

impressive number of subscribers for the future.

generating credit by establishing

“The path is, in my view, quite clear: integrate with

meaningful financial identities for

more mobile network providers!”

mobile phone users in the develop-

Juvo builds up its financial profiles by offering

ing world. That’s a big, difficult and

gradually larger loans. “It’s interesting to

broad problem. Our general line of

understand why mobile network operators don’t

attack is through carriers who have

do this in the same way we do – the simple w w w. b u s i n e s s c h i e f. c o m

41

TECHNOLOGY

answer is risk,” Socrates explains. “We end up taking a tremendous amount of risk on the path of building a credit history for users, at scale. All mobile operators offer small emergency loans, which might cover a single phone call for example, but at Juvo we offer a whole month’s worth of service per loan. Our Data Team was compelled to take this risk to help fulfil the vision and mission of our company: to build meaningful credit.

“We really didn’t understand how radical our loan sizes were until well after we’d been offering them for many years,” Socrates admits. “We 42

figured out how to manage this risk after the fact. In the beginning, you’re just trying to make things work!”

Juvo’s goal for the future is to expand its service to help financial service providers.

“We want to create a financial platform that allows financial service providers to gain access to the transaction histories that we’re building on top of mobile network operators. As I see the problem, the reason the underbanked are underbanked is that in their locale, the data infrastructure required to connect transaction history to capital, is non-existent or seriously inadequate. Right now, we’re working towards constructing a platform that allows end-users and financial institutions to bridge that gap.”

AUGUST 2018

“ We save people trips to the top-up station, which saves them time.

I think every human being in the world understands the value of time” — Aristotle Socrates, Director of Data Science, Juvo

43

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CITY FOCUS | NEW YORK

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A

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people in the metropolitan area, a wide variety of sought-after talent and entrepreneurial visionaries contribute to New York’s economy.

Vast amounts of businesses have headquarters or branches in New York for all sizes and manners of operations, making New York State the third-largest economy in the United States with a majority of the economic development taking place in the city and downstate.

New York is among the top twenty world economies with an annual gross metropolitan product exceeding $1.5trn and recent figures put the unemployment rate at 4.3%.

AUGUST 2018

49

THE ECONOMY OF NEW YORK

incredibly diverse with activity in

While New York has always been

finance, technology, tourism and

a global and national economic

hospitality, entertainment,

powerhouse, the city has recently

healthcare, manufacturing, and

experienced the largest eco-

professional services to meet the

nomic boom since World War II.

needs of such a large population.

An unprecedented 4.4mn total

The financial services industry,

jobs are held city-wide which

securities in particular, remains a

accounts for three quarters of the

bedrock of New York’s economy

entire state’s 11.5% job growth

on account of the New York Stock

over the last eight years. The

Exchange which is the most

city’s economy and that of the

influential securities exchange in

entire metropolitan area are

the world. Over 90% of New York w w w. b u s i n e s s c h i e f. c o m

CITY FOCUS | NEW YORK

state’s investment-related jobs are located in downtown New York with the remaining 10% in the metropolitan area. Despite this geographic concentration, the city’s financial industry activity has a major influence on the entire state’s economy.

New York may be best-known for its role in the financial industry but economists postulate that “Silicon Alley” will surpass its west coast counterparts given the technology-fueled business revolution taking place. With fast growth in the

50

technology sector in Brooklyn and Manhattan in particular and the city serving as a major international port and travel hub, New York has unique advantages over Silicon Valley and the other technology meccas out west. Technology jobs have subsequently risen 25.5% since 2010 (compared to 31% for non-tech jobs) and predominantly fueled by billions in venture capital.

AUGUST 2018

51

THE BUSINESS OF THE ARTS

of TV and book publishing along-

New York has historically been

side digital media and the

a prominent world landmark

growing presence of the video

for publishing, media, and

games industry, all types of

entertainment.

media serve as a cornerstone of

As the second-largest film and

New York’s economy. The gener-

television production region in

ous tax incentives for film and TV

the country and world leader in

production, with a proposed tax

independent film production, the

credit for video game and digital

film industry contributes almost

media production, have consist-

$9bn to the city’s economy

ently made New York attractive to

alone. With the steady presence

investors and entrepreneurs. w w w. b u s i n e s s c h i e f. c o m

CITY FOCUS | NEW YORK

Companies to watch Silicon Alley is making a rapid ascent in the city. Google, Apple, Facebook, Microsoft and other tech giants have satellite offices in New York and VCs have invested over $1.2bn in New York-based startups, with the former helping to stabilize the startup ecosystem that is quickly growing and thriving in the city. Startups are forming, incubating, and getting venture 52

capital in mass numbers but there are other large technology companies to look out for that are New York natives.

IBM Despite representing less than 5% of the company’s total workforce, the computer titan is still the largest tech employer in New York with 20,000 employees in the city.

As a New York tech institution, 9,000 of these employees are in engineering roles.

AUGUST 2018

SALESFORCE The digital marketing giant that posted over $10bn in revenue in the 2018 fiscal year has a substantial presence in New York with over 1,000 employees in the city. Roughly onethird of them are in engineering roles with the majority being non-tech.

PLANTED Thriving on New York’s rich diversified economy and talent pool, Planted is a Brooklyn-based startup that builds teams in other startups and established companies by matching them with professionals in nontech roles. Seeded by Great Oaks Venture Capital, Planted is expanding its New York operations and looking to expand to other markets.

TROOPS Troops is a software developer building workflow automation tools designed to integrate with the most popular tools such as Salesforce, Slack, and G Suite. The founders credit New York’s diversity and quality talent for their success. The fast-growing startup has raised $7mn in Series A funding from Felicis Ventures after $2.6mn in seed money from First Round Capital.

w w w. b u s i n e s s c h i e f. c o m

53

CITY FOCUS | NEW YORK

Currency

Dollar 8.6mn Population

Nearest airport

18.6mi JFK

54

AUGUST 2018

BUSINESS ENVIRONMENT New York is often not considered “business friendly” relative to other states and cities due to onerous taxes and regulations. The city has its own income tax and a variety of vague local business taxes, including S corporation status being recognized by New York State but not the city.

New York City real estate is among the most valuable and sought-after in the world, with Midtown Manhattan holding the world’s the largest central business district and almost 400mn square feet of commercial office space. Commencing or moving operations to New York is difficult and costly as a result but many business leaders find the tradeoff of the voluminous talent pool and attractive location to be worth it.

w w w. b u s i n e s s c h i e f. c o m

55

T O P 10

AUGUST 2018

Top 10

CEOs in the USA

Here are the top ten CEOs in the US ranked by their overall compensation for 2017. The rankings are based on the list which was published in the New York Times in May E DI T E D BY

B E N M OU NCE R

w w w. b u s i n e s s c h i e f. c o m

T O P 10

09

Ronald F. Clarke

FLEETCORE Technologies $1,000,000 Salary / $45.1mn overall compensation Ronald F. Clarke, age 61, became the CEO and President of FLEETCOR Technologies in August of 2000. In

10

Stephen Kaufer

58

March of 2003, he also took on the role of Chairman of the company.

FLEETCOR Technologies has its

TripAdvisor

headquarters in Norcross, Georgia

$700,000 Salary / $43.2mn overall compensation

in addition to 16 other offices around

and has offices in Atlanta and Wichita the world. FLEETCOR Technologies

Stephen Kaufer, age 53, helped

has more than 7,100 employees with

found TripAdvisor in February 2000

a median salary of $34,700.

along with Langley Steiner and oth-

www.fleetcor.com

ers. Kaufer has been the President and Chief Executive Officer of TripAdvisor since starting the company.

TripAdvisor has its headquarters in Needham, Massachusetts, and offices in Overland Park, Dallas, Atlanta and 35 other global bases.

It is estimated that TripAdvisor has 3,236 employees with a median salary of $99,643. ir.tripadvisor.com

AUGUST 2018

07

Dexter Goei

Altice USA (ATUS) $490,385 Salary / $56.3man overall compensation Dexter Goei, age 47, became the CEO and chairman at Altice USA in June 2016. Goei first joined the company in 2006 after working in the investment

08

Jeff Bewkes

banking industry for 15 years at JP Morgon and Morgan Stanley. Altice USA was started as a subsidiary of the international Altice Group in 2015. The

Time Warner (TWX)

company headquarters are located in

$2,000,000 Salary / $49mn overall compensation

Bethpage, New York. The company

Jeff Bewkes, aged 66, was the CEO of

alticeusa.com

currently has around 15,300 employees with a median income of $121,645.

Time Warner from 2008 to June 14, 2018, when Time Warner was acquired

by AT&T. At the time of the merger, Time Warner was headquartered in New York City. In 2017 Time Warner Cable had approximately 26,000 employees with a median salary of $75,217.

w w w. b u s i n e s s c h i e f. c o m

59

T O P 10

05

Gregory B.Maffei Liberty Media

$2,118,454 Salary / $61mn overall compensation Gregory B. Maffei, age 58, is the president and CEO of Liberty Media.

He also serves as the chairman of

06

W.Nicholas Howley 60

TransDigm Group

$7,000,000 Salary / $61mn overall compensation W. Nicholas Howley, age 65, became the CEO at TransDigm Group in 2003 after the purchase of TransDigm Incorporated, the company he founded with Douglas W. Peacock in 1993. On April 30, 2018, Howley changed positions at TransDigm Group and took over the responsibility of the Executive Chairman.

TransDigm Group is currently headquartered in Cleveland, Ohio. The company employees approximately 9,200 people with a median salary of $103,797. www.transdigm.com J U LY 2 0 1 8

TripAdvisor, Live Nation Entertainment, and Sirius XM. Maffei took over as CEO of Liberty Media in 2005.

The company was initially formed as a separate entity by TCI in 1991. The business currently has its headquarters in Englewood, Colorado. There are just over 3,500 employs who earn a median salary of $98,725. ir.libertymedia.com

03

Michael Rapino

Live Nation Entertainment $2,416,667 Salary / $70.6mn overall compensation Michael Rapino, age 52, has been serving as the CEO and President of

04

Leslie Moonves CBS

$3,500,000 Salary / $68.4mn overall compensation

Live Nation Entertainment since August 2005. Rapino also currently is the CEO and President of Live Nation Worldwide, Inc. and Live Nation Merchandise, Inc. Live Nation Entertainment was formed after the merger of Ticketmaster and Live

Leslie Moonves, age 68, joined CBS

Nation in 2010. Live Nation Entertain

as the president of CBS Entertain-

has its headquarters in Beverly Hill,

ment and became the chairman and

California. Live Nation Entertainment

CEO in 2003. The parent company of

employs approximately 8,300 people

CBS was founded in 1928 when Wil-

with a median salary of $24,406. www.livenationentertainment.com

liam Paley was able to acquire 16 separate radio channels and then combined them to create Columbia Broadcast System. The headquarters for CBS is in New York City, and the company has 59 other locations throughout the US and internationally.

CBS has around 12,700 employees with a median salary of $116,654. www.cbscorporation.com

w w w. b u s i n e s s c h i e f. c o m

61

T O P 10

62

02

Frank J.Bisignano

First Data Corporation (FDC) $1,320,000 Salary / $101.2mn overall compensation Frank J. Bisignano, age 59, became the CEO of First Data Corporation in 2013. Bisognano also serves as the company’s chairman. He is also the CEO at FundsXpress Financial Network and FDGS Group, LLC. First Data Corporation was founded in 1995 when First Data Resources merged with First Financial Management Corporation. The headquarters is located in Atlanta, Georgia and the company has 136 offices located in 24 countries. First Data Corporation has around 22,000 employees with a median salary of $50,406. www.firstdata.com J U LY 2 0 1 8

63

01

Hock E.Tan

Broadcom (AVGO) $1,100,000 Salary / $103.2mn in overall compensation Hock E. Tan, age 65, became the CEO, President and Director of Broadcom in March of 2006. Broadcom Corporation was founded in 1991 by Henry Samueli and Henry Nicholas. The company is headquartered in San Jose, California and has 52 other offices both in the US and abroad. Broadcom employs around 14,000 with an average salary of $125,000. www.broadcom.com

w w w. b u s i n e s s c h i e f. c o m

Championing leading supply chain practices at UCSF Health With robotics, automation, new processes and more, UCSF Health is setting new standards for healthcare with its innovative supply chain.

WRITTEN BY

LAURA MULLAN

PRODUCED BY

DENITR A PRICE

U C S F H E A LT H

UCSF

Health is at the forefront of healthcare

“I found myself doing the same set of rote and rudimentary tasks every

innovation but, behind the scenes, the

day,” he notes. “I began to realize

group’s Medical Center supply chain team

that with the help of our Materials

are keeping the cogs turning so it can

Management Information Systems

focus on delivering the state-of-the-art

Team (MMIS Team) we could

care it is known for.

automate a lot of the procurement

UCSF Medical Center was recently named among the nation’s premier

66

technology could be.

activity I was encountering.”

Automation has become a

medical institutions for the 17th consecu-

prevalent trend in the supply chain

tive year, standing as the fifth best hospital

field and it hasn’t gone amiss at

in the country and the top-ranked hospital

UCSF Health. In 2009, Limbert and

in California, according to U.S. News &

his team partnered with Global

World Report’s 2017-2018 Best Hospitals

Healthcare Exchange (GHX) to

survey.

develop tools that allowed his team

In the back-end, its supply chain team is

to onboard vendors who would then

responsible for a comprehensive set of

receive their purchase orders (POs)

services that continually strengthen the

in a highly-automated and accurate

scope of its patient care. The organisation

fashion.

provides access to a broad range of

“A requester at the hospital could

medical-surgical products, and consist-

scan an order or put through a

ently seeks to reduce supply chain waste

request and that would queue up a

and expenses but, above all else, it is

requisition that would be turned into

committed to delivering quality customer

a purchase order automatically

service, which enables premium care.

without any buyer intervention,”

When he began as a buyer in procurement almost 16 years ago, Jake Limbert, now Director of Supply Chain Operations,

explains Limbert. “We call it ‘no touch POs.’ “We were able to do that on a fairly

did many menial and repetitive tasks –

large scale. We have about 600

that’s when he realized how transformative

POs that go out every day and so

AUGUST 2018

H E A LT H C A R E

67

FACT

There are 600,000 pieces of product onsite at all times

w w w. b u s i n e s s c h i e f. c o m

Smart Autonomous Mobile Robot

Change Movement Aethon TUG robots deliver medications and laboratory specimens securely, as well as heavier loads such as meals, linens, waste and supplies throughout your hospital. It frees your people to do more of what only they can do – serve patients.

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www.aethon.com

H E A LT H C A R E

“ IF WE CAN EMPOWER OUR CLINICIANS TO PROVIDE BETTER CARE THEN WE CAN ALSO GROW WITH THEM IN A WAY THAT’S MEANINGFUL” — Jake Limbert , Director of Supply Chain Operations

the UCSF Medical Center at Mission Bay opened, aiming to set new standards for healthcare in the 21st century.

The 289-bed complex features three separate hospitals, specialized in serving children, women and cancer patients. With such a mammoth operation, Limbert and his team wanted to focus on automation and streamlining operations where possible.

With the latest wave of innovation, it seems robotics are redrawing the healthcare landscape. Keen to tap into this emerging trend, UCSF

we were really able to take our PO activity and just

Health teamed up with Aethon to

turn it into an automated process. At that point,

use its autonomous mobile TUG

we could also hard code shipping and logistical

robots. These new-generation

standards with all of our vendors so they knew

robots allow UCSF Health to

that UCSF had an exact and predictable

distribute items easily and reallo-

timeframe to deal with.”

cate their workforce so team

Building on this partnership, GHX then built Registration Center, otherwise known as ‘RegCenter’ which allowed UCSF Health to

members can focus on value-adding tasks rather than repetitive jobs.

“This was revelatory as it allowed

onboard its own vendors. As a result of its efforts,

us to reallocate our full-time

UCSF was later recognized by GHX in 2011 with

equivalent (FTE) resources,” said

their first every Industry Impact Award.

Limbert. “We also utilize the TUGS

Since then, Limbert and his team have

for our soiled linen pickup which

continued on an upward trajectory thanks to new

helped us reduce employee injuries

and improved technological innovations. In 2015,

because, given census and patient w w w. b u s i n e s s c h i e f. c o m

69

U C S F H E A LT H

volumes, these linen carts are becoming increasingly unwieldy. Thanks to robotics we’ve been able to keep our employees in an area where they’re most effective and appreciated.

They’re able to further support clinicians.”

Like many in the supply chain discipline, UCSF Health has worked to streamline and standardize its processes, so that the medical professionals can focus on what matters — patient care. Every patient’s healthcare needs are unique and highly personalized.

Therefore, Limbert and his team worked closely with clinicians to establish their needs and maintain the unparalleled, innovative care 70

UCSF is known for. In doing so, the group has worked to strike a balance between streamlined, cost-effective supply chain processes whilst meeting the individualistic needs of the clinicians and patients alike.

“If they’re able to interact with clinicians in a meaningful way then that allows us to again, gain their trust,” explains Limbert. “We just don’t want people stocking shelves, we want people to engage the clinician and figure out their needs UCSF Our Stories: Rite of Passage -- A Hospital Prom for Teen Patients

so we can make sure they are enabled to deliver the highest quality of care.”

“There’s a certain level of

AUGUST 2018

H E A LT H C A R E

FACT

The UCSF Medical Center is the fifth best hospital in the county and the top-ranked hospital in California

expectation that our clinicians demand

synch with your needs?’ Almost like a

and I think we are able to provide that by

switchboard, we plug and slot them into

empowering our employees to resource

our order of business.

and make decisions on their own. We call

“Alternatively, they might say, ‘Well that’s

them our ‘supply chain ambassadors.’ We

not really going to work because our cases

want them to be resources for the

start at 7:00 a.m. so we need product

customers, not just inventory technicians.

replenished by 5:00am,’ for example. In

“The real product for us is patient care.

Every patient has a different set of needs and a clinical path unique to them.

“We are able to engage the end user, the

that case, we are able to scale it and tweak it for them.

“That is a challenge, however, it’s also something that we relish. Every patient is

clinician, and say, ‘These are our schemat-

unique and they are our number one

ics and this is our framework. Does this

priority. I think we have to be mindful of w w w. b u s i n e s s c h i e f. c o m

71

U C S F H E A LT H

where we can standardize and where we can’t.”

The opening of the UCSF Benioff Children’s Hospital at Mission Bay was not only a key milestone in the institutions’ history, but it also gave Limbert and his team a fresh slate to drive efficiencies and cost savings.

In doing so, the team had two focuses: the first was the customer and the second was generating operational data.

“First, we determined, having learned from previous successes and failures, what the customer

72

“EVERY PATIENT IS UNIQUE AND THEY ARE OUR NUMBER ONE PRIORITY” — Jake Limbert , Director of Supply Chain Operations

expected from us and what they needed in order to deliver the quality care that our patients deserve,” explains Limbert. “We were able to listen and figure out what worked and didn’t in the previous care area and then adapt and create new workflows, meaningful periodic automatic replenishment (PAR) levels and service level agreements (SLAs).

“Secondly, we built a very robust and intricate set of data,” he continues. “In order to achieve the previously established automation, we had to engage MMIS and our

AUGUST 2018

H E A LT H C A R E

vendors to ensure the efficiencies would be mirrored in another facility.

“We devised new shipping

“It’s a good problem to have in that the healthcare environment in the Bay Area is very competitive but if

locations and schedules aligned

we can empower our clinicians to

with our new docks for optimal

provide better care then we can

transport up to the unit. For

also grow with them in a way that’s

example, right now a technician will

meaningful,” notes Limbert.

transmit an order and in less than 12

“Allowing our ambassadors and

minutes the vendor will have it. They

staff to feel ownership over the care

can pick it and then it will show up

that we’re providing is vital. If you

the next day at that room in fewer

can illuminate their piece within this

than 24 hours.”

dynamic jigsaw, it helps them feel

With 78mn products delivered

more engaged and proud to provide

annually at UCSF, its supply chain

a crucial piece in the patient care

operation is mammoth in scale.

continuum.”

Now, as the organization expands, Limbert says the biggest challenge is sustaining this growth. w w w. b u s i n e s s c h i e f. c o m

73

Where transforming an enterprise starts with transforming business communications WRIT TEN BY

L AUR A MULL AN PRODUCED BY

ANDY TURNER

Creating superior customer experiences with artificial intelligence and machine learning, Avaya is ready for the digital age of communications

AVAYA

W

ith audio conferencing, web conferencing, video conferencing, instant messaging, and more

entering the fray, there are now many ways for businesses to communicate.

Needing to simplify this proliferation of new technologies, enterprises of all sizes are now turning their attention to new, innovative approaches like unified communication.

By allowing employees to send messages through one medium and receive the same communication on another medium, this integrated way of communicating aims to improve employee efficiency, effectiveness, 76

workforce mobility, customer service and, ultimately, competitiveness.

Carving its path as a global leader in digital communications services, Avaya is all too aware of how technology can transform both communication and the customer experience alike.

With a far-reaching offering, the company strives to break down the barriers between disparate systems and seamlessly connect business stakeholders and customers.

Avaya’s product portfolio can be divided into three core areas – unified communications, cloud solutions, and customer experience and contact centers – and it’s clear they’ve been a hit, with Avaya solutions being used by 95% of all Fortune 500 companies.

AUGUST 2018

TECHNOLOGY

77

w w w. b u s i n e s s c h i e f. c o m

Extraordinary customer engagement powered by AI. Nuance combines the best of automated and human-assisted customer service powered by AI to help companies provide meaningful interactions that maintain context as customers move between devices and channels – from IVR to SMS, virtual assistant to live chat – while informing agents about previous engagements.

- Conversational IVR that can understand callers and respond intelligently - Biometrics security and fraud prevention to authenticate users - Virtual assistants for guidance on digital channels - Proactive outreach to notify or remind - Live chat/live agent support when a human touch is needed When customer service is done right – the benefits are loud and clear. You get reduced costs, increased revenue, exceptional customer satisfaction and unwavering brand loyalty.

Learn more.

Or contact us – cxexperts@nuance.com.

Nuance and the Nuance logo are registered trademarks or trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other trademarks referenced herein are the property of their respective owners. July 2018/3575

TECHNOLOGY

Jean Turgeon, Vice President and Chief Technologist, says that the firm’s cutting-edge digital platform as well as its ability to integrate new technologies is helping it streak ahead of its competitors.

“We deliver an automated digital framework, which I describe as a puzzle with different pieces inclusive of an innovative communications

‘ Avaya can respond to events detected

by IoT technology and notify the right people in real-time” — Jean Turgeon, Vice President and Chief Technologist

platform,” explains Turgeon. “So, we have to take different technology

still keep up-to-date with the latest

innovations and we bring them all

industry trends.

together to be able to transform and deliver a digital experience.

“We have a delivered an open

“It doesn’t make a whole lot of sense for customers to build a next-generation digitally enabled platform that

architecture bringing together unified

doesn’t unify communication technolo-

communication portfolio, a contact

gies and have the ability to integrate

center portfolio, automated workflow

new technologies such as the internet

capabilities with a high degree of

of things (IoT), AI, analytics and/or

sophistication, and we’ve demonstrat-

taking advantage of blockchain

ed our ability to take other technolo-

technology,” he says.

gies, such as CRM from Salesforce,

With research showing that the next

AI with Afiniti and more, tightly

decade will be marked by record IoT

integrated within our ecosystem.”

growth (some firms predict revenue

Taking its cutting-edge portfolio

will break into the trillions), Avaya is

further, Turgeon says that Avaya’s

leveraging this innovation through its

ability to integrate new technologies

work in workflow automation.

gives it a unique competitive edge as customers can use the portfolio but

For instance, by integrating with IoT technologies, Turgeon believes the w w w. b u s i n e s s c h i e f. c o m

79

AVAYA

system could successfully alert authorities to the breakout of a fire.

“We can connect our portfolio very easily to IoT platforms, so that when IoT platforms trigger events that we can automate workflow to notify the right people in real time.

This creates a huge level of differentiation; by having this automated digital platform and the flexibility to integrate various technology altogether, it puts Avaya in a very good position from a competitive point of view.”

Using its communication services, Avaya can respond to events detected by IoT technology and notify the right people in 80

real-time. This means that, with its API integration, Avaya can make IoT data actionable, and holistically solve business problems for customers.

“ Anything other than real-time or near realtime communication is just not good enough anymore” — Jean Turgeon, Vice President and Chief Technologist

AUGUST 2018

TECHNOLOGY

81

With virtual reality, chatbots and

time contextual information to let you

augmented reality becoming the norm,

know that it’s not a good idea to

artificial intelligence (AI) and machine

establish a video call with me.

learning have also become a common expectation for customers.

Turgeon says that AI will soon play

“Today we leave it up to the caller to make the decisions about how they should contact you. Artificial intelli-

an integral role in communication

gence is going to become a key

services today.

component in communication

“You and I are communicating at

technologies, allowing systems to

this moment,” he tells me. “But if I

automatically determine what is the

was in my car, driving 70 miles per

best modality of communication at

hour on a highway, the system

a particular point in time.

wouldn’t able to retrieve any real-

“You no longer leave it to the caller. w w w. b u s i n e s s c h i e f. c o m

AVAYA

82

“We deliver an automated digital framework, which I describe as a puzzle with different pieces inclusive of an innovative communications platform” — Jean Turgeon, Vice President and Chief Technologist

Now systems can blend that intelligence with machine learning capabilities, consuming all of this data and contextual information, and makes sense of that in real time.”

Artificial intelligence could also help contact centers use real-time coaching capabilities, whereby a skilled and experienced employee’s historical data can be used to give immediate feedback to another worker.

“If a customer is on a call and is unsatisfied we’re able to provide assistance to a contact center agent in real time based on our sophisticated speech analytics platform,” describes Turgeon. “This allows the ‘machine’ or a supervisor if escalated to be able to both give information to the agent, suggest other ideas on how to handle the situation, or even trigger an event to a supervisor to come and assist you.”

By combining its communication services with APIs, the opportunities for Avaya are

FACT

For the 2017 fiscal year, Avaya reported revenue of $3.272bn

endless. This is not only beneficial for the company’s bottom line but it could also help transform people’s lives.

Fraudulent calls and scams are a dark cloud for many customers and businesses alike but Turgeon believes Avaya is pushing the envelope with its latest innovations.

As part of the Avaya Mobile Experience, the company is working on Identity-as-a-Service (IDaaS) which will reduce the risk of

AUGUST 2018

TECHNOLOGY

Click to watch: ‘Accelerate the speed of your business communications with Avaya Equinox’ 83 identity fraud by using contact centers

other incidents – time is critical. There-

to verify the customer’s validity through

fore, the real-time nature of Avaya’s

the use of biometrics.

portfolio is one of its fundamental traits.

“I can eliminate the three to five

“If you’re unhappy with your service

security questions that someone may

at a hotel, for example, and you tweet

ask to determine your identity if the

about it it’s better if the business is able

confidence factor is high,” Turgeon

to react immediately,” notes Turgeon.

explains. “That’s time wasted by the

“Anything other than real-time or near

agent. We’re hearing from various

real-time communication is just not

industries that they’re spending around

good enough anymore.

40 to 75 seconds on average just trying

“So, we have to start leveraging much

to identify the caller. This really helps to

more sophisticated capabilities to be

improve the customer experience.”

able to transform the experience right

In many of the real-life cases Turgeon

now. You don’t want to lose a customer

discusses – resolving customer com-

who could contact a different organiza-

plaints or alerting people to fires and

tion to do business with. I have to react w w w. b u s i n e s s c h i e f. c o m

AVAYA

“ It’s about connecting the world in real time, with the right data” — Jean Turgeon Vice President and Chief Technologist

to any issues immediately in real time.

“By the same token, if someone is having

84

that is most likely to help them.”

In the digital era, every

a heart attack or there’s an incident such as

interaction, whether direct or

a fire or a gas leak, time is of the essence. The

indirect, represents an oppor-

real-time aspect of a next-generation digital

tunity to deepen customer

platform that integrates real-time contextual

relationships. By diving into

information is extremely important, regard-

ground-breaking innovations

less of which use cases you look at.”

and offering seamless commu-

Building on its current platforms and

nication experiences, it seems

exploring recent improvements in AI and

Avaya is making sure that every

machine learning, Avaya is working to

opportunity counts.

bolster the AI ecosystem with its new initiative, A.I Connect.

Bringing technology vendors and strategic

“From my viewpoint, some of the use cases of our technologies are helping businesses be

partners together, the forum aims to speed

more attractive and profitable,

up the development and application of AI

whilst others are tied to trans-

technologies in contact centers and unified

forming cities, communities, and

communications for Avaya customers.

the type of services that they

“Through A.I Connect we have collaborated with companies such as Salesforce, who is a global leader in CRM, as well as other

can offer to their community,” notes Turgeon.

“It’s about connecting the

companies like Afiniti,” adds Turgeon. “Afiniti

world in real time, with the right

offers AI assisted pairing between the

data, and I think this is the tech-

customer and the agent to make sure that

nology that we will continue to

the customer is redirected to the person

invest in.”

AUGUST 2018

TECHNOLOGY

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SECURING

double-digit GROWTH through supplyTRANSFORMATION chain The fastest growing beauty and personal care brand in North America in 2017 , Rodan + Fields remains committed to innovating within the premium skincare market WRITTEN BY

CATHERINE STURMAN PRODUCED BY

DENITRA PRICE

RODAN + FIELDS

S

kincare has become big business.

anti-aging, dry, sensitive, or oily

Looking and feeling good, both on

skin, Dr. Katie Rodan and Dr.

the inside and out has become a

Kathy Fields founded Rodan +

significant market and led companies to vie

Fields to support the growing

against one another to not only attract new

gap for dermatological products

customers, but also retain a solid customer

within the adult skincare market.

base in the process. In North America, the

With over 200,000 independent

premium skincare market is set to reach

consultants across the US, Can-

$9.9bn by 2021, with the US accounting for

ada and Australia, Rodan +

15% of global premium skincare sales alone.

Fields has gained over 2mn cus-

However, whilst the majority of adult skin-

tomers, and is projected to

care products focus on areas such as

continue to drive double-digital

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J U LY 2 0 1 8

S U P P LY C H A I N

thenext five years.

Disrupting traditional business models

“This has been a great challenge

Originally selling the business to Estee

for us,” explains Bryan Wayda,

Lauder in 2003, the founders bought back

Chief Supply and Service Officer

the business upon witnessing a number of

at Rodan + Fields.

areas converging together which provided

“When we’re growing at an aver-

a unique opportunity to further disrupt the

age of 60% or more over the

beauty market. The emergence of social

last 10 years, we have worked

media in the mid-2000s led companies to

closely with our supply base

look at transforming traditional business

to address this in a comprehen-

models and address the ongoing chal-

sive way.”

lenges within brick and mortar retail stores.

growth across its operations for

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RODAN + FIELDS

90

Diane Dietz, CEO

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S U P P LY C H A I N

“We are continually looking at how to get to the market faster. We have relocated our distribution point from Dallas to Ohio to put us closer to our center of gravity for customers” — Bryan Wayda, Chief Supply Chain Service Officer at Rodan + Fields “The founders saw an opportunity to look at the direct selling model in a very disruptive way, which broke some of the rules of traditional direct selling and created how we operate today with our consumer connected commerce model,” says Wayda.

“In a traditional direct selling model, the company would sell to a distributor, and the distributor would collect products, sell to

Break the Cycle of Acne | UNBLEMISH Regimen | Rodan + Fields

customers, collect the money and do the administrative work.

“Our model flipped it upside down, where we said, ‘why not let us do a direct to consumer shipment, order management and payment process’. This allows consultants to do what they do best, which is connect to their networks, identify new customers and provide a personalised customer experience by helping them find the right skincare products and grow their business.” w w w. b u s i n e s s c h i e f. c o m

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S U P P LY C H A I N

Product innovation By launching a multitude of regimen-based products, Rodan + Fields continues to focus on four key areas: lines and wrinkles, brown spots and discolouration, acne and sensitive

‘The fastest growing beauty and personal care brand in North America in 2017’

skin. However, the so-called ‘Amazon effect’ has significantly impacted its supply chain capabilities and created ever-growing consumer expectations.

“We are continually looking at how to get to the market faster. We have relocated our distribution point from Dallas to Ohio to put us closer to our center of gravity for customers,” adds Wayda.

“Everybody expects everything faster than

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they ever did before, and so we’ve made a strategic move to put a warehouse in the most strategic location to get products out faster.”

Responsible for Rodan + Fields’ end to end supply chain operations, dealing directly with consultants and customers, as well as the product management for new products, Wayda has streamlined the commercialisation and industrialisation of existing products whilst bringing new products to life.

“Our plan was to add one new product every couple of years in the first several years, so that we grew organically and both our consultant base, as well as our internal team, gained a good understanding of our core

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S U P P LY C H A I N

products. In the last couple of years, how-

Nonetheless, to enable further

ever, we’ve accelerated this.

growth, it remains imperative

“Our products are fairly technical and highly

for the supply chain to work

effective with the types of ingredients and

with those who can support its

the formulas used. It’s been a change for our

ambitions to further scale.

organisation to introduce new products

“Many of our suppliers were

quickly, bring them to market and commer-

great suppliers when we were

cialise them in a strong way. It’s been part of

a $100mn business. They fit us

the culture shift of how we operate the busi-

really well because they had

ness.”

flexible batch sizes. In many cases, they offered opportuni-

Supplier drive

ties for us to do things that

Partnering with AT Kearney across its con-

were unique as a small player,

tract manufacturer rationalisation, Rodan +

but as we scaled, their fit

Fields has sought to follow a typical strategic

became better suited for play-

sourcing process; starting from a request for

ers who looked like what we

information (RFI), leading the way to award-

used to look like, so we had to

ing the business and transitioning for

make some tough decisions,”

technical transfer.

notes Wayda.

‘In North America, the premium skincare market is set to reach $9.9bn by 2021, with the US accounting for 15% of global premium skincare sales’ Mircro-Dermabrasion Paste - Jar w w w. b u s i n e s s c h i e f. c o m

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RODAN + FIELDS

“Through a seven-step process, we

use of technology has strongly

made some decisions to partner

underpinned Rodan + Fields’ sup-

tighter with some players because

ply chain operations. Upgrading its

they had scaled their business with

outdated enterprise resource plan-

us. It was a venture within contract

ning (ERP) system to SAP, the

manufacturing to find the right part-

company has also sought to partner

nerships to produce our product

with a number of new players to

and co-innovate with us for the

provide further visibility, lower costs

future.”

and guarantee high quality outcomes.

Exceptional technologies

By partnering with DHL, Rodan +

Throughout its transformation, the

Fields has not only overhauled its

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S U P P LY C H A I N

contract manufacturing operations,

Fields to gain further expertise,

but also its distribution capabilities.

enhance its order management

“Our partners need to manage high

platform, add value and reduce the

volume of orders alongside our

risk for the business in developing a

ongoing growth. Our partner is DHL

system in house.

in the US, and we’ve also got part-

Additionally, by building effective

ners in Canada and Australia as

relationships with contact center

we’ve opened up those markets,”

providers, the company has

Wayda says.

enhanced its outsourcing pro-

Implementing a state-of-the-art

cesses and improved its customer

warehouse management system

and consultant support.

(WMS) by DHL has allowed Rodan +

“We’ve also partnered with a new

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“Our partners need to manage high volume of orders alongside our ongoing growth. Our partner is DHL in the US, and we’ve also got partners in Canada and Australia as we’ve opened up those markets” — Bryan Wayda, Chief Supply Chain Service Officer at Rodan + Fields

J U LY 2 0 1 8

S U P P LY C H A I N

contact center outsource provider in the last year to make sure that we have someone who can scale with us and offer us global opportunities as we continue to grow, leveraging the knowledge and the input that we receive across multiple geographies,” adds Wayda.

Entrepreneurial spirit As Rodan + Fields continues to expand, the business will continue to explore further global opportunities in markets which fit its strategic skincare portfolio.

“The products are fantastic and remain core to our founder’s mission. Customers and consumers love our products, they’re highly

99

efficacious and serve the purpose they’re intended to serve,” acknowledges Wayda.

“The future is even more exciting when we think about the opportunity to transform the business to fit a truly global market place. A global supply chain will be a really unique opportunity for our business to grow,” he concludes.

“It changes the dynamics of how we look at things when we think of scaling ourselves to be a business that can be double the size or even more than what we are today.

“One of our big opportunities to continue to transform the supply chain, which will help the business evolve in the next several years.”

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The source of value

Procurement executives across the globe continue to see the potential they can unlock throughout the supply chain. They understand that business today is about engaging, collaborating, adapting instantly to evolving needs, and finding new sources of value. Getting that value, however, can prove a challenge.