Winning the quest for uninterrupted service
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FOREWORD
W
elcome to the November
hyper-personalised data centre
edition of Business Chief USA.
services. Also, Paul Edmisten, Senior Vice President and Chief Information
This month’s cover features Pete
Officer at Tivity Health explores the
Marin, President & Chief Executive
evolution of the company and its
Officer at T5 Data Centers. Marin
digital transformation journey.
has had over 20 years of experience in the data center sector, ranging
In our leadership feature, Ian Hood,
from development, securing debt
Chief Technologist and Global Service
and equity capital, to tenant
Provider at Red Hat, discusses the use
representation, including site selection
of IoT technologies within the business
and incentives. T5 Data Centers
and the potential of 5G. This month’s
is tripling its staff to support new
City Focus, takes a closer look at Boston,
projects for hyperscale, enterprise and
the capital city of Massachusetts, and
colocation customers in construction
our Top 10 ranks the busiest airports
services and facilities management.
in the US by passenger footfall.
Other thought leaders featured in this
Do you have a story to share? Please
edition include: Tony Bishop, Senior
do not hesitate to get in touch and you
Vice President, Platform and
could be featured in our next issue.
Ecosystem, and Corey Dyer Executive Vice President, Sales and Marketing
Enjoy the read!
at Digital Realty, who discuss the
Georgia Wilson
company’s ongoing efforts to offer
georgia.wilson@bizclikmedia.com
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CONTENTS
14 HOW T5 DATA CENTERS IS WINNING THE QUEST FOR UNINTERRUPTED SERVICE FOR ITS HYPERSCALE AND ENTERPRISE CUSTOMERS
32
44 The cloud playbook
54
THE YEAR OF THE CUSTOMER
MANAGING OPERATIONAL RISK IS KEY TO IMPROVING SUSTAINABILITY
72 City Focus
BOSTON
64 80
CONTENTS
94 Digital Realty
136 Retail Business Services, an Ahold Delhaize USA company
110 NewCold
176 Qualcomm
158 Tivity Health
194 Partners Behavioral Health Management
208
224
REC Solar
Unilever
238 LSG Sky Chefs
250 Envoy Mortgage
278 WSP Canada
262 Telus Digital
14
HOW T5 DATA CENTERS IS WINNING THE QUEST FOR UNINTERRUPTED SERVICE FOR ITS HYPERSCALE AND ENTERPRISE CUSTOMERS WRITTEN BY
DAN BRIGHTMORE
NOVEMBER 2019
PRODUCED BY
TOM VENTURO
15
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T 5 D ATA C E N T E R S
T5 Data Centers is tripling its staff to support new projects for hyperscale, enterprise and colocation customers both in construction services and facilities management.
T
5 Data Centers (T5) is focused both on real estate assets and supporting services across the global data center
arena, serving hyperscale, enterprise and coloca16
tion customers. A developer of high-quality data centers in the best markets in North America, and worldwide, T5 offers a range of services to meet the needs of the most demanding companies. “That’s why we created our Facilities Management division (T5FM) and our Construction Services division (T5CS),” explains T5’s President & CEO, Pete Marin. T5CS was established in 2014 and offers specialized construction services for missioncritical facilities and renewable energy solutions. The division excels with turnkey data hall construction, facility infrastructure upgrades, equipment procurement, project management and consulting, and green energy projects. With more than 200 mission-critical projects completed across the US, T5CS currently operates in 41 states.
NOVEMBER 2019
17
$100mn+ Approximate revenue
2008
Year founded
400
Approximate number of employees
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T 5 D ATA C E N T E R S
“ The leading hyperscale users are building large solar arrays, so we’re developing that expertise and see it as complimentary business and part of the symbiotic relationship with everything we’re doing across the industry” 18
— Pete Marin, President & CEO, T5 Data Centers
Those green energy projects are supporting hyperscale and enterprise data center operators. “We’re ready to meet the demands of the latest initiatives,” assures Marin. “The leading hyperscale users are building large solar arrays, so we’re developing that expertise and see it as complimentary business and part of the symbiotic relationship with everything we’re doing across the industry. We are providing construction services to groups that actually own the purchase power agreements, and we’ll also look at investing in those in the future.” T5 has partnered with Cherry Street Energy to expand its renewable energy expertise by adding solar array installation to its growing list of general contracting support services. This will also help further develop T5’s leadership position on an important initiative gaining increased traction in the mission-critical industry. “The solar industry has come a long way over the last five years,” says Robbie Sovie, Executive Vice President for Development & Construction at T5. “The systems have become more efficient economically and the footprint efficiency has also improved,
NOVEMBER 2019
CLICK TO WATCH : ‘T5 DATA CENTERS – PETE MARIN, PRESIDENT & CEO, 2018 YEAR-END MESSAGE’ 19 allowing more watts-per-square-foot
design is so important; we always
in a given area. We anticipate green
make sure we utilize energy in the
energy will continue to expand within
most efficient way. If we have those
the mission-critical sector. We’re very
initiatives, then our customers are
excited to support Cherry Street
going to gravitate towards us because
Energy, and additional clients as
we compliment those initiatives. We’re
we implement solar solutions across
driving towards renewable energy to
North America.”
support data centers and help them
Among these projects will be the largest solar installation yet seen in
become more sustainable.” T5’s award-winning Facilities
the state of Georgia. “We’re always
Management and Operations division,
focused on improving the plans and
T5FM was also formed in 2014 and
reducing the amount of wasted power
now provides third-party mission-
that goes into a data center,” confirms
critical data center management and
Marin. “That’s why cutting-edge
operations services, including remote w w w.busi ne ssc hief. com
Nationwide Landscape Civil Engineers Architectures Planners Mission Critical Specialist: Lawson Fanney, P.E. Lawson.fanney@kimley-horn.com 404.201.6132 | 678.333.3387
NOVEMBER 2019
hands, property and asset management,
Right now, we’re focusing on the
consulting, and training.
piece of gear that gets replaced the
The technologies T5 leverages in its
most, and that’s the battery. Knowing
data center operations help support
when they need to be refurbished
its mantra: ‘Forever On’. For a
or replaced, saves money and can
company in the space and cooling
reduce waste.” He believes we’ll see
business, Marin notes that T5 is also
more data analytics tools deployed in
in “the guaranteed lights will never go
the data center and T5 will embrace
out business”. Put simply, reliability
that, while improving BMS (Building
is everything. “We need to monitor all
Management System) and EPMS
of those systems,” maintains Marin.
(Electrical Power Management
“Among the technology initiatives
System) capabilities to guarantee
we utilize is predictive analytics.
100% uptime. T5 has served leading
Being able to predict when a piece of
companies in IT, finance, insurance,
equipment is going to fail is vital.
health care, and telecommunications,
E XE CU T I VE PRO FI LE
Pete Marin As President & Chief Executive Officer of T5 Data Centers, Pete is responsible for setting the overall strategy of the firm, maintaining client relationships, capital management, and creating and executing the firm’s vision for growth. Pete has more than 20 years of experience in the data center sector ranging from development, securing debt and equity capital, to tenant representation including site selection and incentives. Pete’s understanding of end-user needs has enabled T5 Data Centers to reduce project cycle-time and cost, which leads to successful relationships, and repeat business.
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21
T 5 D ATA C E N T E R S
building a strong reputation for data center reliability as a serial recipient of The Uptime Institute’s Continuous Uptime Award for uninterrupted service. T5’s Senior Vice President & Director of Sales, David Horowitz notes that, even though the data center industry is still in its infancy, five to 10 years from now many of the legacy facilities will be considered outdated. He adds: “As enterprises continue to look to monetize their data centers, either by shifting to the cloud or adopting the wholesale outsourcing 22
model, being smarter in how we design our buildings and by utilizing improvements in technology will be a key factor for us when planning the future for T5.” T5 has been investing in that future through its alliance with QuadReal. The global real estate investment, operating and development company boasts a $27.4bn portfolio spanning across 23 major cities worldwide and was established to manage the real estate program of British Columbia Investment Management Corporation (BCI), one of Canada’s largest asset managers with a $145.6 billion portfolio. In the past year T5 and NOVEMBER 2019
QuadReal have joined forces by launching a $2.5bn fully integrated platform to develop, acquire and operate data centers. “We were able to raise capital with QuadReal with a long-term view across our differentiated platform of assets and services,” explains Horowitz. QuadReal had been looking to invest in the data center industry for several years. Horowitz notes the company was attracted to T5 above its competitors for a very good reason. “We offer a full suite of data center services and solutions: asset-based development and leasing, construction services, and facility management and operations. That’s our true differentiator that no other competitor in the data center business can offer.” Marin adds: “There’s plenty of capital out there looking to invest in the data center space, but there’s a very short list of qualified management teams. Most of the providers are just aiming to construct and lease buildings, few also have the expertise to operate them. Our alliance with QuadReal is a game-changer for current and future customers in the w w w.busi ne ssc hief. com
23
T 5 D ATA C E N T E R S
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enterprise and hyperscale markets, allowing us to build the world’s most advanced and customized data center facilities faster and at scale.” T5 is equipped to take on the challenges of a demanding marketplace. Marin explains it’s natural for the customer to want the highest quality product at the most competitive price. “Construction costs are increasing,” he adds. “We’re seeing upward pressure on labor costs but in the end, it’s all about our processes and our team. We have a tried and tested approach to managing the
“ We offer a full service: asset-based, construction services, and facility management and operations platform. That’s our true differentiator that no other competitor in the data center business can offer” — Pete Marin, President & CEO, T5 Data Centers
E XE CU T I VE PRO FI LE
David Horowitz David is Senior Vice President, Director of Sales for T5 Data Centers. David is responsible for overseeing business growth and promoting T5 Data Centers’ global portfolio and full services capabilities. David’s role includes developing the go-to-market strategy for new markets and leading the national sales team with its strategic initiatives. David has led multi-market searches for some of the world’s largest companies and has closed over 300MW and more than $1bn of data center real estate transactions. Prior to joining T5, David spent 10 years managing data center practice groups for commercial real estate firms.
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25
T 5 D ATA C E N T E R S
C OM PA N Y S TAT S
• T5FM active in 15 US markets • T5 operating 28 data centers – mix of owned and third-party assets • 600MW of IT load managed • 200 mission critical projects completed across the US by T5CS
26
• $2.5bn platform launched with QuadReal to develop, acquire and operate data centers
NOVEMBER 2019
people at each of our facilities and the strategy we have for delivering our products and services has proven to be successful.” That success is leading T5 to nearly triple its staff (from 150 to 400) to support new projects. “After building data centers for more than a decade, we are seeing changes in the market, and so we are adapting our operations and scaling to meet the evolving needs of our customers,” says Marin. T5 is committed to supporting veterans and “we were among the first in the data center industry to recruit former nuclear personnel from the navy,” he reveals. “We find that within that talent pool we’ve been able to identify great candidates to be retrained for the data center business.” In August this year, T5 was nominated among the top ten places to work in Atlanta, so clearly Marin and his team are on the right path. “We’re a small, private company,” reflects Horowitz. “But we have the communication and the collaboration across the business from our investors, down to the folks in the field, fueling a culture I believe is superior to any of our peers in the industry. We’ve developed this from w w w.busi ne ssc hief. com
27
T 5 D ATA C E N T E R S
CPGbeyondthecloud.com
the ground up by giving everyone on our teams a voice in how we grow the business, implement change and introduce tools to improve our assets while empowering them to speak to our customers.” And, thanks to T5’s ability to provide customized real estate development solutions, the customers keep coming. “After an extensive national search by a large Fortune 100 company, we were awarded a demanding build-tosuit project designed to meet a client’s exact specifications,” explains 29
CLICK TO WATCH : ‘HOW T5 SECURES LA COUNTY DATA’
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T 5 D ATA C E N T E R S
30
“ Our alliance with QuadReal is a game-changer for current and future customers in the enterprise and hyperscale markets” — Pete Marin, President & CEO, T5 Data Centers
Horowitz. “Because of our collaborative and transparent approach, the project was a great success and we exceeded expectations on all fronts – budget, schedule and now the operations on an ongoing basis.” Moving forward, T5 will continue to ramp up its efforts. “We’ve been busy acquiring additional land holdings by investing out of our new venture with QuadReal to kick off developments,” reveals Marin. “We’ve purchased land in Portland, Oregon, in Atlanta, Georgia, and we’ve got land holdings
NOVEMBER 2019
QuadReal & T5 – a data center alliance “The data center market continues to experience very strong growth, driven by the accelerating digitalization of information,” says Jameson Weber, Head of Special Situations for QuadReal. “This strategic investment ($2.5bn) puts us in a very unique position to participate in this growing market alongside a
trusted company with a proven track record in data center development, construction, and management. T5 Data Centers is the logical partner to help us build a long-term business in tech-related real estate while ensuring our users receive the highest levels of service and security for their mission-critical data.” 31
in Charlotte and in Colorado. We also
they too grow their footprint and, from
have an active data center in LA and
an operational perspective, put our
we’re getting ready to launch a new
T5FM stamp on those facilities and
project in Dublin, Ireland.” Meanwhile,
reap the rewards from the strong
the company will also focus on
platform we’ve built over the past
growing its services while looking for
decade.” T5’s platform for excellence
M&A opportunities that will support
in the data center industry looks set
the scaling of T5’s platform. “Right
to march forward, forever on.
now, we’re on target to boost our employee levels to 400 and I can see that growth triple in the coming years,”
F o r e v e r On .
says Horowitz. “We have a lot of growth in front of us. We’re ready to support the top hyperscale users as w w w.busi ne ssc hief. com
LEADERSHIP
The evolution of IoT and 5G technologies
32
Business Chief USA speaks with Ian Hood, Chief Technologist, Global Service Provider at Red Hat, to discuss IoT technologies and the potential of 5G WRITTEN BY
NOVEMBER 2019
GEORGIA WILSON
33
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LEADERSHIP
I
an Hood, Chief Technologist, Global Service Provider at Red Hat, is an “engineer and problem solver at heart.” Throughout the last few
decades of his career, Hood has worked in the
telecommunication sector designing hardware, software and networks, for governments, banks and global providers. Hood was drawn to Red Hat just over three years ago, finding the “open source way of life quite intriguing.” From software development, 34
to marketing, sales and support, the open source “approach is applied to every aspect of the business,” says Hood. He goes on to say that “being able to work together with customers to solve complex technical and business challenges around the world and being able to share that knowledge with other customers, partners and industries,” is a key aspect of his role at Red Hat that initially led him to the company in the first place. Day to day in his role, Hood primarily engages with telecommunication, media and digital service providers to architect and optimize the efficiency of next generation 5G, MEC and edge infrastructure as well as the innovative cloud-native services and applications that the technology may be combined with.
NOVEMBER 2019
35
“ The key to securing any system is to design with all aspects of security in mind. This means everything in the entire supply chain” — Ian Hood Chief Technologist, Global Service Provider, Red Hat w w w.busi ne ssc hief. com
LEADERSHIP
“ Everywhere around the world, communications service providers are aggressively testing 5G innovations and multiaccess edge computing (MAEC) technology” — Ian Hood Chief Technologist, Global Service Provider, Red Hat
“Our customers are already demonstrating innovations in their 5G and Edge labs that use drones with high definition camera recording for public safety and firefighting; healthcare is making use of data sharing for brain scans between hospitals and clinics; manufacturing and mining sites are using innovations to control heavy equipment,” says Hood. Current trends that are exciting Hood the most relate to “the intelligent use of data streams and telemetry for artificial intelligence (AI) and machine
36
learning (ML).” Many examples of
NOVEMBER 2019
CLICK TO WATCH : ‘NEW SOLUTIONS FOR A NEW PARADIGM OF EDGE SERVICES, WITH IAN HOOD, RED HAT AND RAJESH GARDIYAR, INTEL CORP’
this can be seen in healthcare and
“Everywhere around the world,
customer services, but Hood sees
communications service providers
“a broad potential to combine AI and ML
are aggressively testing 5G
with software-defined infrastructure
innovations and multi-access edge
and cloud native applications deployed
computing (MAEC) technology,”
at the far edges of networks, to bring
says Hood. While he believes many
these services beyond urban centers
connected IoT business applications
and improve lives everywhere.” Key
can run on current Long-Term
industries that Hood feels will benefit
Evolution (LTE) networks “those that
most from the adoption on IoT
require consistent low latency, high
technologies “to affect our quality of
bandwidth and large-scale distribution
life” for the good include: healthcare,
of end points will gain a significant
manufacturing, agriculture,
boost from 5G and perhaps be
transportation and automotive.
impossible without it.” w w w.busi ne ssc hief. com
37
LEADERSHIP
Hood believes industries that stand to benefit from 5G include: Manufacturing “Monitoring and reporting low data streams in real time – machine operating data like temperature or air pressure, for example – is already a central component of plant management,” says Hood. However, the development of 5G will continue to “evolve manufacturing by making much higher data streams possible, 38
creating a ‘factory of the future,’ where networked machines will be able to respond efficiently to tasks, whether they are issued by human commands or through AI and robotics.” Additionally, “the consistency of lower latency rates enabled by 5G distributed architectures enables improved reliability of remote applications and processes, reducing risk.” Transportation “Transportation of the future will benefit greatly from a hybrid of distributed 5G and MEC architectures and the dynamism of softwaredefined networking,” says Hood. NOVEMBER 2019
Implementation of this hybrid technology will “enable efficient and reliable delivery of applications at massive scale anywhere on the planet.” Smart cities In order for a city comprised of interconnected solutions to function, millions of sensors must transmit data simultaneously, making a smart city essentially a blended workload bringing together upwards of 20-30 or more IoT devices each with different requirements,” says Hood who believes “the seamless connectivity, telemetry, security and analytics capabilities offered by 5G can ensure every sensor and device work together effectively.” Hood does however, acknowledge that with these 5G innovations there are challenges and risks, in particular – cyber threats. “The key to securing any system is to design with all aspects of security in mind. This means everything in the entire supply chain,” says Hood. Key implementations to stay ahead of cyber threats include “organisation-wide commitment, risk management, clear governance, and w w w.busi ne ssc hief. com
39
LEADERSHIP
“ Our customers are already demonstrating innovations in their 5G and Edge labs” — Ian Hood Chief Technologist, Global Service Provider, Red Hat 40 accountability, with requirements for
deployed, these applications may be
consistent, repeatable processes and
deployed across a collection of open
best practices. Being secure means
edge clouds,” says Hood. “We also
maximizing the confidentiality,
expect to see applications of AI, ML,
integrity, and availability of the systems
blockchain, AR, VR and the advent
and infrastructure that comprise the
of serverless computing across
5G, MEC and IoT environment.”
healthcare, automotive, agriculture,
Looking to the future, Red Hat looks to continue towards its vision of an
manufacturing and finance.” Going forward, Red Hat – while
open hybrid cloud enabling customers
retaining its independence and
to deliver any application or service
continuing to build and expand all its
on any infrastructure. “We are already
partnerships – will look to continue its
seeing many deployments of hybrid
relationship of over 20 years with IBM,
cloud for enterprise as well as service
“working together to solve compelling
providers, and with the expansion of
business challenges for customers.”
the 5G, MEC infrastructure being
IBM and Red Hat share a common
NOVEMBER 2019
41 objective to drive innovation across
Red Hat are leading global providers
the hybrid cloud with choice and
of open source solutions to help
flexibility. As well as giving customers
companies in all industries and regions
the opportunity “to take advantage
to digitally transform and become
of Red Hat and IBM’s modular agile
better interconnected. Red Hat’s open
integration and business intelligence
source portfolio covers: hybrid cloud
and open API management tools to
infrastructure, middleware, agile
accelerate their time to revenues.”
integration, cloud-native application
“The key focus for us is how to help them expand and evolve their current
development, management solutions and automation solutions.
environments in a practical manner while providing compelling business benefits along with improved customer experiences - quite an exciting time for all of us.” Established over 25 years ago, w w w.busi ne ssc hief. com
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TECHNOLOGY
THE CLOUD 44
PLAYBOOK Bas Lemmens, VP EMEA at software company Pivotal, on the factors to consider when planning a cloud migration strategy WRITTEN BY
BAS LEMMENS
NOVEMBER 2019
45
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TECHNOLOGY
T
he execution of a cloud migration strategy can be an anxious time for business leaders. Not only are the core aspects of moving to
the cloud often shrouded in technical jargon (public vs private; hybrid vs multi; containerisation; XaaS; etc.), but also, the diversity and complexity of IT infrastructure varies widely from business to business,
46
making the risk of disruption difficult to determine. Imagine a business’ IT infrastructure as a bus speeding along the motorway. The vehicle must transport assets and information according to a strict schedule, otherwise mission critical processes are subject to disruption, resulting in the loss of precious time and money. In this analogy, an attempt to execute a cloud migration strategy is akin to climbing under the bonnet, swapping out the old engine and fitting a new one, all while the bus is still travelling at speed. Much to the relief of business leaders, the process of cloud migration is far too incremental to be comparable to a Hollywood-style stunt. In fact, a more useful analogy is to think about moving to the cloud as something much more relaxing – chess.
NOVEMBER 2019
47
“CLOUD-NATIVE APPS RUN BETTER, FASTER AND MORE RELIABLY THAN THOSE HOSTED IN ON-PREMISES DATA CENTERS” — Bas Lemmens, VP EMEA, Pivotal
w w w.busi ne ssc hief. com
TECHNOLOGY
RE-IMAGINING CLOUD MIGRATION IN BLACK AND WHITE
piece forward has the potential to
Modern businesses run on a number of
while creating a set model for success
different apps, each with a specific set
is rendered almost impossible by billions
of services or processes that enable
of different potential arrangements.
different aspects of business to func-
48
increase the vulnerability of others,
What does this have to do with the
tion. Like pieces on a chess board,
cloud? Put simply, cloud-native apps
these components achieve their pur-
run better, faster and more reliably than
pose by operating in a variety of differ-
those hosted in on-premises data cent-
ent ways to achieve a common goal.
ers. Moreover, the distributed nature of
The way in which these components
cloud computing makes it more difficult
are configured can impact how effec-
for apps to be targeted by cyber-attacks,
tive they are in achieving their goals,
while the flexibility it affords organisations
creating a delicate network of interde-
means that cybersecurity protocols can
pendencies that is not always obvious
be rapidly adapted to the shifting cyber
from an initial assessment. Moving one
threat landscape. Most importantly,
“RUNNING APPS IN THE CLOUD ALLOWS BUSINESSES TO BECOME MORE AGILE – A CRUCIAL CHARACTERISTIC TO HAVE IN A RAPIDLY CHANGING WORLD” — Bas Lemmens, VP EMEA, Pivotal NOVEMBER 2019
CLICK TO WATCH : ‘HOW PIVOTAL HELPS YOU BECOME A MODERN SOFTWARE COMPANY’ 49
however, running apps in the cloud
BRING IN THE CAVALRY
allows businesses to become more
The external perspective of a third-
agile – a crucial characteristic to have in
party organisation is especially useful
a rapidly changing world. Apps run in
during migration projects. This will help
the cloud benefit from both increased
to overcome the tendency for cloud
portability and scalability, which helps
migration projects to suffer from tunnel
businesses adapt their products and
vision and offer an expert opinion to
services to changing levels of demand,
assist difficult decisions. For example,
or to more closely align with customer
an organisation may have modernised
needs. This is how value can be gener-
its enterprise application structure to
ated as a direct result of migrating apps
run in the cloud, launched new micros-
to the cloud, while also saving costs by
ervices and started adhering to a new
only using as much of the IT depart-
architectural style, but neglected to
ment’s resources as needed at the time.
retire its legacy infrastructure. Such w w w.busi ne ssc hief. com
TECHNOLOGY
ground and end up wasting money and
ONE SMALL STEP FOR IT, ONE GIANT LEAP FOR BUSINESS
slowing down systems – despite effec-
A game of chess is lost when all the
tively being redundant in cloud-based IT
most important pieces are brought
environments. Instead of hiding, these
to the frontline simultaneously.
blind spots can be easily identified and
Accordingly, nowhere does it say that a
safely eliminated by granting visibility
business must shift all of its apps to the
to an unbiased third party to rigorously
cloud in a single move. Even with just
check the assumptions initially made.
a small portion of apps running in the
problems can easily fade into the back-
The surging popularity of cloud-native
50
cloud – often only 10-20% of a total
enterprise applications has also chal-
estate – businesses will notice the ben-
lenged conventional wisdom on how
efits of the cloud begin to manifest in
to keep systems safe and secure. From
areas such as value-added services,
infrastructure to application development,
enhanced customer experience and a
there is a sharp contrast between legacy
greater capacity to innovate.
cybersecurity tools and a more modern, cloud-native approach to protecting IT resources. Organisations must reimagine their cyber defences to adapt to the needs of the cloud-native era. As a result, organisations moving to the cloud must be bold and invest in the innovations, patterns and practices in order to be successful, such as establishing a DevOps culture, engage in the continuous delivery of new apps and updates and adopt a microservices architecture. These are the tools that are needed for cloud-native security the way in which major risks can be mitigated. NOVEMBER 2019
It is paramount that businesses
businesses can embark on a journey of
planning a cloud migration strategy
learning and adapting to a new cloud-
focus first on moving the apps that are
based environment, and ensure that
best positioned to reap the benefits of
cloud migration projects are successful.
the cloud. Which apps deliver the most value to customers? Which apps are
MAINTAINING ENGAGEMENT
the most important in ensuring the
The usefulness of technology partners
people within the business can achieve
does not stop at the technology itself.
their goals? Which apps drive the most
Perhaps, one of the most important
traffic? Identifying which apps are core
aspects of cloud migration projects is
to the business and moving them to
to maintain stakeholder engagement
the cloud, it can be assured that the
throughout the process. Technology
maximum outcomes of the technology
partners can be instrumental in
are being achieved with minimal
espousing the benefits of technical
change. By taking incremental steps,
projects to members of the executive
“THE BEST MIGRATIONS HAPPEN WHEN INDIVIDUAL TEAMS WORK TOGETHER, FROM DEVOPS TO IT” — Bas Lemmens, VP EMEA, Pivotal
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TECHNOLOGY
board, such as tangible ROI and new opportunities to compete, scale and grow. It’s important that it’s not just the customers that go on and benefit from this journey. Teams within the organisation must understand the technology and concepts being deployed and be shown the value of having existing systems changed. As with any major cultural change, resistance is to be expected, especially when executed in parallel with a large technology project such as a 52
cloud migration. Making sure teams are on board with change is foundational to success, and establishing processes for introducing them to new solutions and software is crucial. The best migrations happen when individual teams work together, from DevOps to IT. Again, this is where an incremental approach is fundamental, as each step leads to new insights which require continuous course correction and adaptation. The often technical way in which cloud is described means that the crucial human factor of cloud migration is forgotten. A people-centric approach must be taken, one which rigorously NOVEMBER 2019
questions any assumptions regarding individual teams’ reactions to the change involved. Only then can a project become successful.
WINNING THE GAME No one ever won a game of chess without sacrificing pieces along the way. Equally, no cloud migration project is flawless. Even with the best tools and people at their disposal, organisations will find themselves making certain trade-offs and facing unexpected circumstances. Moving to the cloud, however, isn’t a leap of faith; it’s an incremental and strategic reconfiguration of IT resources that requires evaluation every step of the way. The outcome? An IT offering that is fit for purpose, futureproof and capable of serving the needs of both clients and employees alike.
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PEOPLE
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THE YEAR OF THE CUSTOMER In every industry, the need for companies to provide their customers with seamless digital experiences is growing more and more pressing, and those unwilling to adapt to a new class of consumer run the risk of being left behind WRITTEN BY
NOVEMBER 2019
HARRY MENEAR
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PEOPLE
A
cross every industry in every market, one thing has become clear in 2019: this is the year of the customer.
Ubiquitous advertising, economic discomfort in a shrinking middle class, more ways than ever for people to self-determine the companies they deal with, a hunger for on-demand and personalised products and services, and a younger consumer class grown increasingly distrustful of an unfair capitalist system, are all conspiring to firmly put the ball back in
the court of corporations when it comes to 56
attracting and retaining a customer base. Back in 2018, James Paine, the Founder of West Realty Advisors wrote, in a piece for Inc, that “twenty years ago, if you paid for a product or service and you weren’t happy with what you received, the best you could hope for was that if you sent in a letter of complaint, you’d eventually receive a refund. You could tell a couple of friends and maybe they’d tell their friends, but that was about it. Nowadays, though, if a customer has a bad experience then they can post about it online, and if they post about it online then it can go viral and even seriously damage the overall value of your brand. After all, all it took was one tweet from Kylie Jenner to knock US$1.3bn off Snapchat’s valuation.” NOVEMBER 2019
“ People expect improvements at a pretty fast clip these days” — Victoria Holt, CEO, Protolabs
57
The message from consumers is clear: “treat us right or perish.” This month, we explore explores the strategies being adopted by companies that want not simply to survive this age of seamless consumer experience, but to thrive in it. Victoria Holt, CEO of digital manufacturer Protolabs, agrees that customer expectations in her industry have changed over the past decade. “People expect improvements at a pretty fast clip these days. So, being able to very quickly design, prototype w w w.busi ne ssc hief. com
PEOPLE
58 and launch products is a critical suc-
transform to offer products that are
cess factor for manufacturers today,”
more personalised and readily availa-
she explains, adding that “there’s more
ble, and in return, this drives customer
mass-customisation too, which is
expectations and the standards are
another thing that not only requires
becoming more exacting every year as
rapid innovation, but the capacity to
the customers take more and more
produce products in lower quantities
control.
as you customise them for specific end
“For the last 50 years, software
uses. Again, this lends itself to a more
development has been specification-
digitalised manufacturing process.”
centric. Teams created software that
This emphasis on harnessing the
complied with a specification. That just
power of digital transformation is part
doesn’t work anymore,” says Antony
and parcel with the ouroboric relation-
Edwards, Chief Operating Officer of
ship between the company and
artificial intelligence, analytics and
customer. Companies digitally
software solutions company, Eggplant.
NOVEMBER 2019
CORTEX Social media is the most visible, immediate and effective medium
Small, Boston-based AI startup Cortex touches
through which companies can interact
more lives on a daily
with their customers. These three
basis than most major
startups are using AI to revolutionise the customer experience online.
advertising firms. Founded in 2015, the company owns and operates a
“ Software teams need to use customer analytics to become user-centric and create software that delights users and drives business outcomes” — Antony Edwards, Chief Operating Officer, Eggplant
proprietary AI platform that reportedly eliminates the need for a dedicated social media data analyst. “Cortex learns what makes better marketing content and offers creative direction, social media insights, and competitive benchmarking based on this data analysis.” Trusted by diverse global brands like Heineken (achieving a 39% increase in engagement with the beverage giant’s Dos Equis property) and band
“Software teams need to use customer
Maroon 5, Cortex uses its algo-
analytics to become user-centric and
rithmic analysis of social trends
create software that delights users
to “know exactly what to post,
and drives business outcomes.”
when, how often, and instantly
Edwards’ observations are backed by
add the most effective photo
a recent white paper from Adobe.
or video. No more guessing,
Noting that the most successful mod-
no more searching. Done in no
ern companies are the ones that have
time at all.” w w w.busi ne ssc hief. com
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PEOPLE
digitally transformed themselves, Adobe warns that “transformation needs to be driven with a purpose. For top businesses, that purpose is customer experience”. Companies that place customer experience at the top of their list of priorities are more successful than those who adopt a ‘push’ mentality. But what do those customers want? High level concepts like “customisability” and “on-demand” are a good start, but to better understand the specific 60
things consumers want from them, successful companies are doubling down on analytics and diverting more and more resources, both to under-
purchases. They then feed this auto-
standing their consumers and to
matically back into their software
providing a seamless experience. “Fast
development to optimise revenue.”
food stores are employing user analyt-
Across the board, industry leaders are
ics to understand how their staff are
moving as one towards a more
using point-of-sale terminals and then
informed company-customer relation-
using this information to update the
ship. In Gartner’s recent Customer
point-of-sale terminal so that custom-
Experience Trends Survey, it was
ers are served faster,” says Edwards.
revealed that, in 2018, two-thirds of
“Retailers are using a combination of
companies increased their customer
user and technical analytics to under-
experience technology investments,
stand how technical factors such as
with 52% reporting that they intended
website speed and design factors such
to increase spending further in 2019. In
as high-resolution graphics, impact
last year’s survey, Gartner found that
NOVEMBER 2019
DRIFT Another Bostonian firm, Drift was founded in 2014 and has since become the world’s leading conversational marketing and sales platform that helps businesses connect with their customers. With a focus on immediate revenue generation for its clients, Drift has undeniably displayed the trend with regard to its own development. After just two years on the market, the company has become one of the fastest growing SaaS companies of all-time and was named to the Forbes Cloud 100, LinkedIn 81% of companies expect customer
Top 50 Startups, Entrepreneur’s
experience to be the most important
Top Company Cultures, Boston
competition metric by 2020.
Business Journal’s Best Places to
Seeking to perfect the customer experience is going to become an even greater point of differentiation for com-
Work, and SaaS Company of the Year by the NEVCA. “Using Drift chatbots you can
panies in the next few years. Social
answer common questions in real
media is a valuable tool for companies
time, route qualified leads to the
to understand, sell to and interact with
right sales reps and start conver-
their customer bases, but the sword
sations with prospects in real time.
swings both ways. Debacles like Fyre
Rep in a meeting? No problem,
Festival and Kylie Jenner’s Snapchat
leads can book a time that works
Tweet prove that brands have nowhere
for them and your rep in seconds
to hide anymore; the customer
flat,” according to the company. w w w.busi ne ssc hief. com
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PEOPLE
INVOCA Founded in 2008, Santa Barbara-based analytics firm Invoca has spent over a decade selling the idea of relationship insights as direct value creation. The company is centered around its AI-powered call tracking and analytics platform that helps marketers get campaign attribution and actionable data from inbound phone calls. The approach is a less common one, given the focus of most social media solutions on internet engagements over social media apps. However, with the US outbound telemarketing market predicted to reach higher than $12bn annually by 2025, the application of AI to gain greater 62
insight into the space has its appeal. In an interview in 2017, Invoca CEO Gregg Johnson said: “With the massive rise of mobile, which is driving 85 billion calls to businesses globally and influencing more than $1 trillion in US consumer spending, it’s becoming even more important for marketers to integrate call intelligence with their marketing automation solutions. As consumers increasingly combine their digital interactions with voice interactions, live conversation has become the new competitive battleground for customer experience. Call intelligence allows marketers to connect digital consumer interactions (clicking on paid search ads, browsing websites, etc.) to the voice experience (talking to a human), to have a holistic profile of the customer.� NOVEMBER 2019
experience must be seamless, curated and on-demand. Companies that want to succeed in what may become the Decade of the Customer need expert help – a fact that means the global Customer Experience Analytics Market is expected to grow to around $12bn by 2023 – and to embrace the power of digital. Vinod Muthukrishnan, co-founder and CEO of customer experience management software company CloudCherry, lives this reality every day. “Customer retention is lower than it ever has been. The millennial audience is actually much more conscious of business ethics, the
IN 2018, TWO-THIRDS OF COMPANIES INCREASED THEIR CUSTOMER EXPERIENCE TECHNOLOGY INVESTMENTS THE GLOBAL CUSTOMER EXPERIENCE ANALYTICS MARKET IS EXPECTED TO GROW TO AROUND $12BN BY 2023
environment and corporate social responsibility than the two generations before it, mine included,” he explains. When asked about the key to a great customer experience, Muthukrishnan says: “We’re going back to the basics. In many ways, the more digitisation we do, the more humanisation the customer demands. You can use machine learning, you can use bots – you do whatever, as long as it’s aimed at actually giving that customer a more personal experience.”
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NOVEMBER 2019
MANAGING OPERATIONAL RISK IS KEY TO IMPROVING SUSTAINABILITY Bill Zuurbier, co-founder and Managing Director of risk management consultancy, Equib, discusses the importance of resilience within new structures and the need for clear communication when addressing sustainability
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S U S TA I N A B I L I T Y
66
T
here is an increasing focus on
in the construction sector and other
incorporating resilience into new
industries to prioritise sustainability.
structures, as well as updating
In setting this new target to reduce
existing infrastructure. However,
carbon emissions, the UK is the first
addressing sustainability requires vision
G7 nation to align with the Paris 2015
and clear communication to ensure it
agreement, but others already have
gets the attention it deserves prior to
plans to follow.
and during delivery.
To assist those responsible for the
Increased public awareness of the
design and development of new
impact of climate change and the UK
buildings and infrastructure, the
Government’s recent decision to set
sustainability assessment methodology
a legally-binding target to reduce
– BREEAM – has been rolled out to
greenhouse gas emissions to net zero
more than 70 countries around the
by 2050, are driving decision-makers
world. Used to measure and certify
NOVEMBER 2019
“At any stage of delivery, if whole-life costs are not properly considered, the risks associated with the project can increase dramatically� — Bill Zuurbier, Co-founder and Managing Director of risk management consultancy, Equib 67
the environmental performance of
environmental or societal benefits.
new and existing buildings, those with
As a result, those responsible for
a rating of Excellent or Outstanding are
designing new projects are specifying
deemed to be sustainable environments
sustainable materials and operational
that meet a high standard in terms of
equipment, usually justified by
their environmental, social and corporate
whole-life cost considerations, which
governance (ESG) performance.
prove their efficiency over time.
Certification schemes and bench-
Operational risks are among the
marks clearly have an important role
biggest risk factors for any major-scale
to play in driving sustainability perfor-
infrastructure programme or construc-
mance. Their use is certainly helping
tion project, and successful mitigation
to attract investors and other stake-
starts at design stage, when sustain-
holders, who increasingly expect
ability is closely considered. At this
projects to deliver measurable
stage, a complete cost plan for the w w w.busi ne ssc hief. com
S U S TA I N A B I L I T Y
“Building in sustainability and forward planning at design stage can help to make projects more attractive to private sector investors and public sector sponsors� — Bill Zuurbier, Co-founder and Managing Director of risk management consultancy, Equib 68 project is prepared, incorporating both capital costs, which are associated with the build itself and operational costs, spanning the expected life of the structure. If capital expenditure is low at design stage, but operational costs, such as those incurred when using or maintaining the asset, seem excessive, there is an opportunity to address this by specifying a more sustainable solution. Once building work gets underway, costs can start to increase and if not properly controlled, some of the sustainability benefits of the structure NOVEMBER 2019
69 could be eroded. From the project
make projects more attractive to
manager’s perspective, if budgets are
private sector investors and public
not being met, there could be pressure
sector sponsors. For this reason, many
to cut corners and decisions might be
designers are focused on reducing
taken to swap sustainable equipment,
both embodied and operational carbon
which comes with a higher price tag,
emissions. This typically involves the
for cheaper, less eco-friendly alterna-
specification of energy-efficient
tives. While this could help to reduce
lighting or microgeneration technolo-
capital expenditure, the longer-term
gies, such as solar panels or wind
impact of such decisions on the life-cycle
turbines. Such equipment may increase
performance of the building could
capital expenditure but has the potential
be considerable, particularly if the
to drastically reduce operational costs
replacement costs more to maintain.
over time, making the building more
Building in sustainability and forward
efficient from a cost and environmental
planning at design stage can help to
perspective. Increasingly, designers w w w.busi ne ssc hief. com
S U S TA I N A B I L I T Y
are being challenged to future-proof structures to ensure their sustainability by allowing changes to extend their functionality or capacity further down the line, in lieu of significant refurbishment or rebuilding. At any stage of delivery, if whole-life costs are not properly considered, the risks associated with the project can increase dramatically. An example of this can be seen in the award-winning Queen Elizabeth Olympic Park, which became home to West Ham 70
Football Club in 2016. Forward-thinking designers and their sponsors were keen to develop a multi-storey asset which could bring diverse benefits to the local area for many years to come. Their decision to incorporate dual
“Keeping an eye on operational risks at all stages of delivery is vital to ensure that construction projects deliver on their sustainability promises� — Bill Zuurbier, Co-founder and Managing Director of risk management consultancy, Equib NOVEMBER 2019
it is important that stakeholders at a senior level encourage adherence to the right processes and controls from the start. Once a project is underway, decisions made onsite must be communicated to all stakeholders and endorsed where necessary. As projects can often take many years to complete, these processes and controls must also be robust enough to stick even when there are significant changes of personnel or multiple specialist teams are involved. Wider application of BIM or Building Information Modelling, which involves the creation of a detailed digital description of every aspect of a building or project, can also help to improve data management and visibility across the life of the project. The ability to integrate 3D models with time and cost data means functionality by allowing the structure
risks can be identified more readily and
to double as an athletics track was
used to inform decision making.
inspired, but the operational costs
Keeping an eye on operational risks
attached to switching from one use
at all stages of delivery is vital to ensure
to the other have since become a bone
that construction projects deliver
of contention.
on their sustainability promises.
To assist in de-risking construction projects and infrastructure programmes and delivering sustainability benefits, w w w.busi ne ssc hief. com
71
CITY FOCUS
BOST City Focus
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NOVEMBER 2019
STON Welcome to Boston, a city brimming with history and culture, but powered by a nation-leading commitment to the medical, biotech and finance sectors which has seen it become a hub for conglomerates and startups alike WRITTEN BY
HARRY MENEAR
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CITY FOCUS | H CH O IUCSATGOON
T
he capital of Massachusetts, Boston is the largest city in the New England area of the United States, the 23rd biggest city in the
country. Despite covering only 90 square miles, its 685,094 inhabitants make it one of the most densely populated areas in the United States, with a density of 13,841 people per square mile, according to World Population. The Greater Boston area is the fourth most densely populated region in the United States, only behind the New York Metro Area, Greater Los Angeles and the South Florida Metro Area. The population of Boston is affected heavily by the day-night cycle. Find74
ings by World Population place 1.2mn people within the city limits during work hours and 2.0mn people in the city for special events. Due to its participation in several important historical events, Boston has a year-round tourism industry. One of the top 10 tourist attractions in the US, according to City Date, the city features almost 2,000 restaurants and 62 historical sites. According to the Boston Planning & Development Agency Research Division, May 2018, Boston’s economy has been on an upward trajectory since 2013. Per capita income for residents of Boston stands at USD$40,000. In terms of unemployment, Boston’s rates are below the state and national averages. While the country’s unemployment rate currently stands at 3.7%, Boston’s has managed to stay below 3%. The city has seen its unemployment rate in steady decline since the 2009 high of 7.6%. NOVEMBER 2019
75
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CITY FOCUS | HOUSTON
INDUSTRY
and food services (7.9% or 62,609
Starting in the late 20th century,
employees), and educational services
Boston’s forays into the medicine,
(7.5% or 59,414 employees).
technology and higher education
76
Among the 10 largest employers in
industries have turned it into a national
Boston, four are hospitals: Children’s
leader. The largest industry in Boston is
Hospital, Massachusetts General Hos-
healthcare, which made up 18.3% of its
pital, Brigham and Women’s Hospital,
job market in 2016, employing 144,957
and Beth Israel Deaconess Medical
people. According to the Boston Planning
Center. With regards to higher educa-
& Development Agency Research
tion, Boston has been ranked the 12th
Division, its major industries are profes-
best student city in the United States,
sional, scientific and technical services
according to Top Universities, with 54
(with 12.5% or 98,933 employees),
institutions in the greater metro area
finance and insurance (11.5% or 91,323
and three research universities in
employees), government (with 9.7% or
Boston itself: UMass Boston, Boston
76,940 employees), accommodation
University, and Northeastern University.
© Boston planning and development agency
NOVEMBER 2019
CLICK TO WATCH : ‘LOOK TO BOSTON – CITY OF BOSTON’ 77 Over the past few decades, Boston’s
the Innovation District into the South
employment scene has shifted from the
Boston Waterfront, Boston has
traditional labor-intensive job to those
become a hub of financial and research
in technology and service. These
institutions and tech incubators.
changes have been facilitated by
According to the Boston Planning &
structural management. The Office of
Development Agency Research Division,
Business Development in Boston offers
May 2018, companies that have been
support for small businesses in the city,
attracted to Boston include: General
from facilitating loan acquisition to
Electric, Reebok and Amazon, as well
referrals, allowing them to thrive.
as many new cybersecurity and biotech
According to the Boston Chamber of
startups. Strong in the financial and
Commerce, there are over 40,000
insurance sphere, Boston sees a large
small businesses in the city, employing
number of its residents working at
170,000 people and generating $15 bn
State Street Bank, Fidelity Investments,
in annual revenue. With the induction of
Liberty Mutual and John Hancock. w w w.busi ne ssc hief. com
CITY FOCUS | HOUSTON
685,094 Population of Boston (2017)
1630
Year founded Nearest Airport
6km
78
Boston Logan International
BIOTECH BOSTON
and pharmaceutical companies has
Biotech in Boston is an up-and-coming
had its largest year-to-year increase
industry. The Boston Planning & Devel-
in a decade. This 6.4% jump means
opment Agency Research Division
the state of Massachusetts offers
suggest that Boston is one of the best
over 74,000 jobs in the industry, with
locations in the United States to seek
an average salary of over $138,000.
out a career in the biotech field. This is
MassBio reports that 18 of the top 20
facilitated by the high concentration
drug companies in the country and all
within Boston of research industries
10 of the top medical device companies
and high-end hospitals.Â
have a presence in Boston. The last
The Massachusetts Biotechnology
decade has seen the city build over
Council (MassBio), a trade group,
11mn square feet of lab space, bringing
recently reported that the quantity of
the total designated lab space to
people employed within local biotech
28mn square feet.
NOVEMBER 2019
As a result, the city hosts a yearly Biotech Week, which is designed to accelerate and celebrate the biotech industry. Biotech Week Boston is created in collaboration with the City of Boston’s Mayor Office, the Massachusetts Life Sciences Center, and MassBio. It takes place over three days, with over 300 exhibits and over 5,000 qualified attendees. Over 37 countries are represented in this event. 2020 will see the exhibition taking place between September 21 and September 24, at the Boston Convention and Exhibition Centre (BCEC).
CLICK TO WATCH : ‘BIOTECH WEEK BOSTON 2018 HIGHLIGHTS’
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NOVEMBER 2019
Busiest airports in the US We explore the Airports Council International’s (ACI) 2018 world airport traffic rating, covering passenger traffic, to bring you the top ten busiest airports in the United States by passenger footfall WRITTEN BY
SHANNON LEWIS
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T O P 10
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10
Orlando International
Situated in Orlando, Florida, the Orlando International Airport saw an annual footfall of 47,696,627 passengers in 2018. According to the ACI, this brings its traffic up 6.9% from 2017. 34th in the world, it is the 11th busiest airport in North America, with the airport code MCO. Operated by the Greater Orlando Aviation Authority, it employs almost 800 full-time employees, according to the airport website. Daily, it sees 135,839 passengers pass through and 636 flights scheduled.Â
NOVEMBER 2019
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09
Seattle-Tacoma International
The Seattle-Tacoma International Airport reached a passenger volume of 49,849,520 people in 2018, up 6.2% from the previous year, according to the ACI. Owned and operated by the Port of Seattle, which has been operating since 1911, it is located in Seattle, Washington. The 9th busiest airport in both the US and North America, it ranks 30th in the world. With the airport code SEA, it sees 540 flights every day.Â
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08
McCarren International
Located in Las Vegas, Nevada, the McCarren International Airport saw a 2018 passenger volume of 49,863,090 people, according to the ACI, up 2.7% from its 2017 figures. With the airport code LAS and 477 daily flights, it is the 8th busiest airport in the US and North America and the 29th busiest airport in the world. June and July of 2019 saw McCarren’s passenger count climb, up 3% from the previous year.Â
NOVEMBER 2019
Š Andrew Choy/Wiki
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07
San Francisco International
With 57,738,840 passengers in 2018, San Francisco International Airport is the 7th busiest airport in the US, according to ACI figures. Its passenger volume went up 3.4% from 2017, making it the 25th busiest airport in the world. It has 468 daily flights, according to Flights From, and was awarded the Environmental Achievement Award for having the world’s first zero net energy airport facility, which it built in 2015.
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Š Brandon Van Acker/Wiki
06
John F. Kennedy International
Based in New York, New York, John F. Kennedy International Airport is the 6th busiest airport in the US and North America. Its 2018 passenger volume if 61,623,756 customers is up 3.6% from the previous year. With an airport code of JFK, it is the 22nd busiest airport in the world. According to Flights From, it is the 22nd busiest airport in the world, with 528 flights touching town and departing every day.Â
NOVEMBER 2019
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05
Denver International
Denver International Airport is located in Denver, Colorado. With 64,494,613 customers in 2018, is the 5th busiest airport in the US and North America, according to the ACI. Up 5.1% from 2017 figures, Denver International is the 20th busiest airport in the world. Generating USD $26 bn for its surrounding region, according to the airport website, it is the 4th busiest airport in the world by daily flights. According to Flights From, it sees 828 flights every day.
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04
Dallas/Fort Worth International
The 4th busiest airport in the world, Dallas/Forth Worth International Airport saw 69,112,607 passengers pass through it in 2018, according to the ACI. Located in Dallas-Forth Worth, Texas, its passenger volume is up 3% from 2017. The 6th busiest airport in the world by passenger volume, it is the 3rd busiest by daily flights. According to Flights From, it has 946 passenger flights scheduled every day. It was voted the 2019 airport of the year by Air Transport World.Â
NOVEMBER 2019
© Raysonho @ Open Grid Scheduler / Grid Engine/Wiki
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03
O’Hare International
Located in Chicago, Illinois, with the airport code ORD, O’Hare International Airport is the third busiest airport in the US and North America, according to the ACI. Up 4.3% from 2017, O’Hare International’s passenger volume in 2018 was 83,245,472 people. It is the 6th busiest airport in the world by passenger volume, and the number one busiest airport in the world by daily flight schedule, with 1,189 flights every day, according to Flights From.
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02
Los Angeles InternationalÂ
Los Angeles International Airport is the 2nd busiest airport in the US and North America by passenger volume, according to the ACI. Based in Los Angeles,
90
California, 87,534,384 passengers passed through in 2018, 3.5% up from 2017. It opened as a site for military flights in 1928, expanding to commercial airlines 1946, according to Airport Technology. 772 flights are scheduled to pass through it every day, making it the 5th busiest airport in the world by daily flights, according to Flights From.Â
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Hartsfield-Jackson International
Based in Atlanta, Georgia, Hartsfield-Jackson International Airport is the busiest airport in the US and in the world. According to the ACI, it had
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107,394,029 passengers pass through in 2018, up 3.3% from the previous year, when it was also the busiest airport in the world. The state’s largest employer, it provides 63,000 on-site jobs and generates $3.4bn in revenue for the metro Atlanta area, according to the airport website. It schedules 1,098 flights every day.
NOVEMBER 2019
CLICK TO WATCH : ‘IT’S GAME TIME (WELCOME TO MY CITY)’ 93
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NOVEMBER 2019
Inside Digital Realty’s strategy for an agile, interconnected world WRITTEN BY
HARRY MENEAR PRODUCED BY
TOM VENTURO
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D I G I TA L R E A LT Y
Tony Bishop and Corey Dyer of Digital Realty discuss the data centre giant’s ongoing efforts to offer hyper-personalised data centre services from the single rack to the hyperscale
T
he global business landscape is experiencing a sea change. This transformation is permeating every industry
and market, seeing enterprises in the public and 96
private sectors swept along by a rising tide of demand for interconnected digital services. The ongoing transformation of the global economy is increasing the need for a wider array of digital infrastructure solutions, and is driving a seismic evolution on a global scale. “We’re the best positioned in the industry to address the broadest range of requirements. We build, design and operate some of the most highly interconnected data centres in the world,” says Corey Dyer, EVP of Global Sales and Marketing for Digital Realty. Arriving at Digital Realty in January 2019, Dyer can look back on a year of continued growth and strategic success. Now, he and the rest of Digital Realty are looking forward, as the company embarks on the next phase of its digital transformation voyage. NOVEMBER 2019
2004
Year founded
$3bn+ Approximate revenue
1,500
Approximate number of employees 97
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Founded in 2004, Digital Realty supports the digital infrastructure needs of more than 2,000 companies across the Americas, EMEA and APAC, with industry-leading data centre, colocation and interconnection services. Being uniquely positioned as the largest provider of data centre and digital infrastructure solutions worldwide gives Digital Realty the opportunity to not only navigate the tides of change, but also direct them to help create even more value for its customers. “The digital economy is remaking
“ The digital economy is remaking both private and public enterprises across all industries, transforming how they create and deliver value” — Tony Bishop, SVP, Platform and Ecosystem Strategy
both private and public enterprises across all industries, transforming how they create and deliver value,” says Tony Bishop, SVP of Platform and Ecosystem Strategy at Digital Realty. Now more than ever, Bishop believes, companies need to operate ubiquitously, providing on-demand services to customers, partners and employees enabled by intelligent analytics. “Companies are being forced to re-architect their IT towards a decentralised infrastructure to accommodate distributed workflows, which vary by participant, application, information and location w w w.busi ne ssc hief. com
99
CLICK TO WATCH : ‘AARON BINKLEY ON THE ROLE DATA CENTERS PLAY IN SUSTAINABILITY’ 101 specific needs,” he elaborates.
infrastructure, a “one-stop solution
Dyer agrees. “These customers
that helps to interconnect their entire
need a platform that allows them
digital ecosystem,” enthuses Bishop.
to augment and change things in
“Customers will get to collaborate at
real time,” he says.
scale to solve the problems of global
From this market-wide demand
coverage and capacity through one
for solutions to the increasingly
provider; tailor their infrastructure
mission critical nature of agile,
deployments to their business needs,
on-demand capability is at the
irrespective of data centre size, scale
heart of Digital Realty’s newest
or location; and operate their deploy-
offering: PlatformDIGITAL™.
ments as a seamless extension of
Scheduled for launch this month
their global infrastructure to enable
at the company’s MarketplaceLIVE
globally distributed workflows.”
event in New York, PlatformDIGITAL™ is a new way of approaching digital
Digital Realty is a genuine global partner, placing customer service w w w.busi ne ssc hief. com
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at the heart of its business strategy.
“From a single cabinet, up to multiple
Dyer notes that the company is
megawatts, we’re a one stop shop for
uniquely positioned to deliver a ser-
all their infrastructure needs.” This
vice that is unavailable anywhere else
will be key to Digital Realty’s creation
in the data centre space. “We’re really
of a truly interconnected infrastruc-
the only provider that operates globally
ture offering. “We’re refocusing our
at scale, but at the same time, we
business to take advantage of this
offer this highly tailored experience
unprecedented opportunity and
to each individual customer,” he says.
become the global partner that helps
E XE CU T I VE PRO FI LE
Corey Dyer Corey Dyer is Executive Vice President, Global Sales & Marketing, with responsibility for sales, leasing and marketing efforts across the organisation. Prior to joining Digital Realty, Dyer served as Senior Vice President, Sales, Americas at Equinix, where he had responsibility for sales across the Americas region. Before joining Equinix, Corey worked at Hewlett-Packard, where he served as Vice President, Storage Sales, Canada and led the firm’s Canadian storage business. Previously, he held various sales and sales leadership positions at Dell, primarily in the server, software and peripheral businesses. Corey has over 25 years of experience as a sales leader with a track record of building and driving sales and marketing operations at leading technology companies. He received a Bachelor of Arts degree in Economics from Wake Forest University.
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103
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105
companies manage their digital
and other industries. We’re bringing
transformation with their data centre
together the community that builds
infrastructure as the foundation,”
the cloud, network and internet
says Bishop.
infrastructure to demonstrate how
At MarketplaceLIVE, the company
PlatformDIGITAL™ is built to lead
will launch PlatformDIGITAL™. The
companies into the future of the
event – taking place on 7 November
digital economy,” says Bishop. This
at Spring Studios – is intended to
future that Digital Realty is helping
facilitate discussions around the
create for (and with) its clients and
future of digital transformation.
partners is defined by interconnec-
“We’ll host conversations around
tion and the ways in which coming
connectivity and connected tech-
together fosters collaboration. “It’s a
nology across AI, cloud computing
huge opportunity for us to connect, w w w.busi ne ssc hief. com
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“ We’re really the only provider that operates globally at scale, but at the same time, we offer this highly tailored experience to each individual customer” — Corey Dyer, EVP, Sales and Marketing
not only with our customers but with our partner world,” says Dyer. In addition to being an infrastructure provider, Digital Realty acts as a facilitator of expertise and connections to its client network. Offering a full range of fit-for-purpose data center solutions, from single cabinet colocation to private hyperscale facilities, Dyer remarks that there really is no end to the variation in the relationships and support structures Digital Realty provides. “Because we have such a strong partner community, we can be very agile in how
NOVEMBER 2019
we support our customers in such a
business has also completed the
fast-paced environment.”
acquisition
Digital Realty is continuing to grow,
of data centre infrastructure
both in scale and agility, through a
company Ascenty and entered into
combination of organic and acqui-
joint ventures related to three of
sition-fueled growth. In 2015, the
its data centres.
company completed its acquisition
The past year alone has seen
of data centre solutions company
Digital Realty expand its operations
Telx in a deal valued in excess of
in Frankfurt, Tokyo, Chicago, Dublin,
US$1.8bn. “The Telx acquisition
Northern Virginia, Brazil and more,
has been a huge boost to us and
as well as announcing plans to enter
our ability to provide interconnec-
the South Korean market for the
tion, which massively helped us build
first time. A large element of Digital
PlatformDIGITAL™,” Dyer explains. In
Realty’s growth is self-funded, an
addition to the Telx acquisition, the
impressive feat given what Dyer
E XE CU T I VE PRO FI LE
Tony Bishop As part of the Digital Realty CTO team, Tony plays a central role in helping the organisation build a differentiated global platform and ecosystem strategy to enable enterprises and services providers to accelerate their digital business strategies on PlatformDIGITAL™. Prior to Digital Realty, Bishop served as VP of Global Enterprise at Equinix, Chief Strategy Officer for 451 Research and served at Morgan Stanley as Managing Director, Global Head of Enterprise Datacenter Operations & Strategy. He is the author of Next Generation Datacenters – Driving Extreme Efficiency & Effective Costs Savings ( July 2009).
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107
D I G I TA L R E A LT Y
describes as the “capital intensive” nature of the industry. In September, the company sold 10 of its Powered Base Buildings® to Singaporian real estate developer Mapletree Investments, along with the establishment of a joint venture to co-manage three more facilities. The deal saw Digital Realty generate around $1.4bn in capital. “The transaction is going to allow us to continue selffunding our growth, diversify some of our sources of equity and capital, and really let us harvest value from our 108
fully stabilised assets so that we can redeploy the proceeds into higher
“ MarketplaceLIVE is a huge opportunity for us to connect, not only with our customers but with our partner world” — Corey Dyer, EVP, Sales and Marketing
yielding development opportunities,” Dyer explains. “It continues to build on our global expansions, and lets us stay focused on our core markets and the assets that we think drive the most value to our customers. It also reduces our reliance on capital markets, which can be volatile.” As a leading builder and operator of data centre infrastructure, Digital Realty is aware of the role it has to play in the evolution of the market as a whole. Given that global internet
NOVEMBER 2019
several Northern California properties, and boasting more certified green buildings than any other data centre provider. “Reducing our environmental impact is a priority for us,” says Dyer. “Our long-term goal is to pursue 100% renewable energy for our global portfolio.” The launch of PlatformDIGITAL™ at MarketplaceLIVE is the highlight of a year filled with global growth and billion-dollar deals, highlighting its importance to the company’s strategy. “The launch is going to be the big mover for us, and I’m very excited,” says Dyer. “It’s going to have a huge impact on our business, and our customers’ businesses as well.” usage has tripled since 2015, and is
Harnessing its industry leading scale,
predicted to double again by 2022,
its commitment to providing a per-
managing the amount of power con-
sonalised service to suit the needs
sumed by the world’s data centres
of each individual customer and an
and networks is key to operators’
increasingly sustainable portfolio,
sustainability goals. Digital Realty
Digital Realty is set to enter 2020 as
continues to set and exceed ambi-
a force for intelligent, interconnected
tious sustainability and renewable
digital infrastructure solutions.
energy goals, achieving 100% renewable energy for its EMEA portfolio, 100% wind power for its US colocation business unit, 100% carbon free and renewable power supplied to w w w.busi ne ssc hief. com
109
110
ACCELERATING AUTOMATION IN THE SUPPLY CHAIN WRITTEN BY
PRODUCED BY
SEAN GALEA-PACE CAITLYN COLE
NOVEMBER 2019
111
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NEWCOLD
112
Speaking to Supply Chain Digital in Wakefield, Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer, discusses how influential automation has become to his firm’s operations
T
he industry is changing — automation has become king. The influence of technology on how businesses operate shows
no signs of slowing down and its now become paramount that companies are agile or risk getting left behind. In the case of NewCold, the latest industry trends have been embraced and instilled into four key pillars: innovation, trust, agility and automation. NewCold is recognised as a leader in the development and operation of highly automated cold stores. The firm has a global network with eight locations in three continents and is still growing.
NOVEMBER 2019
113
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LIVING LOGISTICS
REALIZING VISIONS
TGW is your reliable partner for intralogistics solutions: We deliver complete integrated solutions for our customers, realize and service mechatronical subsystems or products adapted to the specific needs of our distributors. TGW Distributor Business is proud of the successful long-term cooperation with NewCold, which includes most areas of intralogistics.
www.tgw-group.com
CLICK TO WATCH : ‘INNOVATION AT THE HEART - ABHY MAHARAJ, NEWCOLDS GLOBAL CCO & COO’ 115 Speaking to Supply Chain Digital
the data, its value and how to build the
at the company’s Wakefield site, Abhy
logistical business around it. All of our
Maharaj, Global Chief Commercial
sites are 80-90% automated and you
Officer & Chief Operating Officer,
won’t find anything else close to that
stresses just how vital technology
all over the world.”
has become to NewCold. “At the heart
Maharaj lives and works at NewCold’s
of NewCold is technology and we
Asia Pacific headquarters in Melbourne.
always operate with the customer in
Still relatively fresh into the role having
mind. What makes us different is the
joined in July 2019, Maharaj believes
way in which we leverage technology
that NewCold’s key focus on customer-
to deliver solutions for our customers,”
centricity was an important factor on his
he explains. “Take Big Data for instance,
decision to join the firm. “When I looked
when NewCold thinks about automa-
at the model, it was breath-taking
tion or about its customers and services
because it centered around automation
— that starts with data. We understand
and getting large volumes of product w w w.busi ne ssc hief. com
Degrees Beyond. Founded in 1997 on the principles of sound construction, exceptional customer service, financial responsibility and personnel management, we are a structurally dynamic organization dedicated to outperforming our competition and exceeding the expectations of the cold storage industry. Most importantly, we are here to help our clients succeed. As an employee-owned company, each member of our team is empowered and vested in the success of our clients. We commit 100% to each detail, big and small. We dismiss the idea of cutting corners and we aim to provide the best for our clients in every aspect. We pledge to complete your job safely, efficiently, on-time and within budget. The partnership with Newcold and their construction team highlights our commitment to listen to our clients and tailor solutions that fit their particular needs. SubZero is your partner from concept to completion. 949 216 9506 subzeroconstructors.com
LEARN MORE
in and out,” affirms Maharaj. “I developed
I feel like it’s a great time to be joining
a strong relationship with NewCold’s
NewCold and also for us to realise our
founder, Bram Hage, who I felt was
potential beyond the three continents
a great visionary and always had the
that we’ve just entered.”
customer at heart. I truly believed it
With automation at the forefront of
was a business model that suited me
operations, NewCold leverages ware-
very well and it’s tremendously scalable
house management software (WMS)
across the world. It’s rare that a
in its automated facilities, which has
European-based business can enter
proven highly successful at the compa-
the US and Australian markets so quickly
ny’s eight facilities worldwide. The WMS,
and we’re only just scratching the surface.
developed by Davanti Warehousing,
E XE CU T I VE PRO FI LE
117
Abhy Maharaj Abhy Maharaj is the Global Chief Commercial Officer & Chief Operating Officer for NewCold. Maharaj is from New Zealand and graduated with a Bachelor of Commerce from The University of Auckland. In his previous roles Maharaj was Head of Strategy & Investor Relations for Air New Zealand, Director of Equity Markets and Strategy for Fonterra Co-operative Group and CFO for Fonterra Australia. During this time, he was responsible for a number of significant transformation initiatives ranging from establishment of new business ventures, re-engineering of customer engagement models, technology and online innovations and complex financial restructuring including leading a $13bn IPO. Maharaj also studied at Harvard Business School and is married to Ashika Maharaj. He has three children.
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INDUSTRIAL
COOLING
SOLUTIONS Potyzestraat 42 B-8900 IEPER BELGIUM Tel.+32 57 21 86 21 www.skt.be info@skt.be
- Major refrigeration contractor to the European frozen food industry - Specialist in the design of large industrial ammonia plants - Manufacturer and installer of large modular IQF freezing tunnels - Authorised installer of Howden, Grasso & Bitzer - Up to 40 tons/hour - More than 50 years of experience - Service 24/24 - 7/7
CLICK TO WATCH : ‘CCO AND COO ABHY MAHARAJ ON THE NEWCOLD FAMILY SYSTEM’ 119
“ I feel like it’s a great time to be joining NewCold and also for us to realise our potential beyond the three continents that we’ve just entered” — Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer
delivers its own state-of-the-art product — the innovative cloud-based management system CORAX. Having been developed using the latest Microsoft technologies, the SaaS (Software as a Service) allows NewCold to control the software design to meet its requirements and fulfil the needs of its customers. Through the assessment of these customer needs, NewCold provides tailor made solutions for the specific transport requests of its customers. The company possesses a range of different solutions to execute the transport of its customers, which w w w.busi ne ssc hief. com
NEWCOLD
120
NOVEMBER 2019
includes a fleet of 200 own managed trucks and a diversity of partnerships which enables a full network optimisation. From operating a large-scale own transport fleet to a 3PL managed transport solution with dedicated partners, Maharaj’s customer-centric approach comes from understanding the drive behind his customers’ requirements. Despite the influx of new technology, Maharaj believes that it is vital that all incoming technology serves a purpose and enhances existing processes to ensure technology is not embraced for the sake of it. “Our sites are developed with sustainability in mind because customers want less energy use. Typically, NewCold’s sites are 50% more energy efficient than conventional cold storages,” he explains. “We make it easy for our customers to understand exactly where their products are in order to enable them to track it in real-time. Our systems are very smart so if a product arrives and is in the warehouse only for a few hours, it is placed in the most optimal position so that it can be moved in and out efficiently. There’s already quite a degree of AI already built into our software system.” w w w.busi ne ssc hief. com
121
HIGH-BAY WAREHOUSE FOR DEEP FREEZE INTRALOGISTICS AT ITS BEST
In Burley, Idaho, NewCold celebrated the grand opening of one of the largest frozen storage facilities of its kind. This impressive project includes a high bay warehouse with 90,000 pallet positions supplied by SSI Schaefer. Additional high bay warehouses for NewCold have been built in Tacoma, Washington, as well as Wakefield, UK and Rheine, Germany. SSI Schaefer has a longstanding partnership with NewCold. As a leading provider of modular warehouse solutions – especially rack clad storage systems, SSI Schaefer has provided several deep-freeze high bay warehouses for NewCold. The latest automated deep-freeze warehouse project is currently underway in Rennes, France. The demand for deep-freeze products continues to grow. As volumes increase, requirements placed upon deep-freeze logistics are getting more complex. SSI Schaefer offers flexible, modular, and scalable solutions that optimize storage, picking processes, and profitability within cold storage facilities. Along with complex logistics solutions, SSI Schaefer also provides rack structures as a standalone business.
ssi-schaefer.com
The long-term success of all businesses lies with the relationships that is developed with its customers. By operating with an agile approach, it allows NewCold to be lean and easily adapt its processes. “Engagement with our customers is key,” he explains. “We need to be constantly aware of the latest industry trends and the needs of our customers. For example, an increasing number of people are eating out of their homes, or using innovations like UberEats or DoorDash, so you need to consider the impact that this is having on our customer’s
“ At the heart of NewCold is technology and we always operate with the customer in mind” — Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer
businesses.” With customer demands frequently changing, Maharaj believes it’s important to keep up-to-date with the latest trends in order to retain its position as a leader in the market. “It’s all about understanding those requirements from our customers to enable us to think ahead,” says Maharaj. “Our software is not just about warehouse management; it also revolves around starting to integrate more into the customer channels. We’re in multiple markets with some of our major customers and it’s important to recognise that supply chain and logistics aren’t w w w.busi ne ssc hief. com
123
Building the Future
At Kingspan Insulated Panels, we are pioneering better technologies and methods of building for a low carbon world. Improving building performance, construction methods and ultimately people’s lives – that’s what drives our people across the world. Energy efficiency is at the heart of our innovation, from making the industry’s most thermally efficient core for our insulated panels, to producing the most airtight interfaces, to providing technical and fieldservice support on how to build optimally. As the world demands more from buildings in terms of energy efficiency, fire safety, weather resilience, health and aesthetics, Kingspan envelopes will take our built environment to the next era of efficiency and wellbeing.
kingspanpanels.com.au
Aesthetics
Build Ease
Energy
Fire
125
the same in every market. It’s really
Kinspan, SSI Schager, Deweerdt,
about acknowledging how we can
S-Zero. Maharaj believes the ability
apply the learning across not only one
to develop mutual trust and under-
country but multiple ones and then
standing is vital to all successful
bring that to our customers and say
partnerships that NewCold estab-
‘you could potentially improve your
lishes. “Partnerships are essential
business if you adopt these changes,’
to us. We have a co-competence that
and that’s really how we work together.”
relies heavily on our partners. At the
Highlighting the importance of devel-
core, we need to grow together and
oping strategic partnerships to help
learn from one another, so trust plays
accelerate operations, NewCold has
an important role in that,” explains
developed key partnerships with a
Maharaj. “Partnerships also help
number of companies such as; TGW
us with innovation too. If they’ve got
Group, SKT, B-Built, Ancra, Fisher CGI,
thoughts and ideas on the latest w w w.busi ne ssc hief. com
NEWCOLD
OUR PARTNERS NewCold values the impact its partners have on its success and collaborates with TGW Logistics Group, SKT, B-Built, Ancra, Celonis, Fisher Construction Group, CGI, Kingspan, SSI Schaefer, Masterveil/De Weerdt BVBA and Subzero Constructors. This affirms why each of these partnerships are critical to driving success at NewCold. 126
TGW Logistics Group TGW Group is NewCold’s partner for the conveyors and lifts in the cold storages, which takes care of pallet transport within the warehouse. It is a global, preferred supplier of NewCold, the two firms have worked in partnership for a considerable amount of time. www.tgw-group.com SKT SKT is NewCold’s supplier of industrial cooling solutions for the European market. SKT delivers the industrial equipment to control the freezing temperatures in the cold storages. It’s a Belgian family-owned company which NewCold has a long-term partnership with. www.skt.be NOVEMBER 2019
B-Built B-Built is a general contractor of NewCold for the European market. B-Built takes care of the actual construction of a NewCold facility. It is a family-owned, small scale company with a lot of flexibility. www.b-built.com Ancra Ancra is NewCold’s preferred partner in the innovative application of Automatic Loading and Unloading systems for warehouses and trailers. With this system, no human hands touch the food products from loading at the producer to in- and outbound at the NewCold warehouse. Ancra is a Dutch company with a global playfield. www.ancra.nl Fisher Construction Group Fisher Construction Group is a preferred general contractor of NewCold in the USA. Fisher built the NewCold facilities in Tacoma (WA) and Burley (ID). Fisher has long-term experience in the construction of cold storages which is of great value in its projects. www.fishercgi.com CGI CGI is a global IT and consultancy services provider that helps maximise the technologies that transform the business of
its customers. CGI supported NewCold in Melbourne to define KPI’s and test protocols for the start-up of a crucial functionality. Their knowledge of Business Intelligence and Testing Methodology helped NewCold to optimise its operation. www.cgi.com.au Kingspan Kingspan is NewCold’s global supplier of insulation panels; they form the external, high insulating cover of NewCold’s facilities. Its high-quality panels are always at the forefront of innovation, which is – in relation to fire safety and insulation value – a high-impact value for NewCold. www.kingspan.com
It’s a Belgian based company with a a high innovative drive and flexibility. www.masterveil-eu.com Subzero Constructors Subzero Constructors is NewCold’s supplier of industrial cooling solutions for the Northern-American market. Subzero Constructors, a US-based company, delivers the industrial equipment to control the freezing temperatures in the cold storages. www.subzeroconstructors.com
127
SSI Schaefer SSI Schaefer is NewCold’s preferred supplier of pallet racking. The racking in the high bay construction of NewCold’s facilities takes care of the huge storage capacity. SSI Schaefer is a global, solid company, originated in Germany, with which NewCold has a long-term partnership. www.ssi-schaefer.com Masterveil/De Weerdt BVBA Masterveil is the designer and supplier of NewCold’s aircurtains and dehumification systems. These systems take care of a solid closure of external openings in NewCold’s cold storage, for instance at train docks. w w w.busi ne ssc hief. com
CLICK TO WATCH : ‘STAYING CUSTOMER CENTRIC WITH NEWCOLDS GLOBAL CCO & COO’ 129 incoming technology, then they share
measuring risk when looking to imple-
that information and we collaborate
ment new software and processes.
together to develop new solutions for
“With any technology and innovation,
our customers or improve efficiencies.
there’s a risk attached. We tend to
I also believe that due to the pace of
develop our own systems and technol-
which NewCold is growing; execution
ogies because we’ve got existing sites
and agility is also critical. As we con-
that we can test and if it’s not working,
tinue to incorporate new customers
we also have mechanisms in place
and enter new markets, we need to
where we can quickly stop the pro-
be fully informed of the trends that
cess.” Maharaj believes in a ‘fail fast’
are out there as well as the challenges
process that if something isn’t going
that we might face.”
to work, then the process can be
With innovation recognised as one
moved into an environment that can
of NewCold’s key pillars, Maharaj
be tested more easily. “We don’t take
understands the importance of
massive risks where we will implement w w w.busi ne ssc hief. com
Outside door (protection)
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new untested processes on a full site
our customers need to believe in and
all at once. We’ll take an approach where
be educated on the automation we
we collaborate with our customers,
have. When you look at the advance-
our people and understand what the
ments of technology, we have spent
risks are. We manage the risks and if
a considerable amount of time educating
the worst happens then we always
and making sure that people fully
have a back-up plan.” Another vital part
understand what it’s all about — there
of NewCold’s mantra is trust. Maharaj
has to be the trust there.”
believes this to be essential to NewCold’s
With an intent to reduce the impact
strategy. “Due to the way our logistics
its operations have on the environment,
and cold storage business is set up,
NewCold has begun to optimise the cold supply chain and introduce innovating concepts. Due to its facilities being tall, it allows the buildings to embrace storage technology with a high stock density. The company’s stacker cranes in the cold store operates in the dark, with
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131
NEWCOLD
“ We have a strong philosophy around sustainability and we want to help bring a greener 132 future. There’s still more to do — we aren’t finished yet” — Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer only LED lighting used for maintenance. This approach has enabled NewCold to use 50% less energy per pallet position in comparison with traditional cold storage facilities. “There’s a substantial focus on sustainability NOVEMBER 2019
133
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The specialist in automatic truck (un)loading. Ancra Systems is the specialist in the field of automatic truck loading and unloading systems, from standard system to customer specific solution. Tailored to your industry and calculated based on your logistics requirements. Ancra Systems has been streamlining loading and unloading worldwide for more than twenty years.
Learn More
+31 (0)880 247 150 ancra.nl
COLD AS ICE A fast-growing specialized construction company, B-Built has extensive experience in building large-scale cold store warehouses in Western Europe. Acquired knowledge that we continuously and successfully apply in the building of new logistics facilities. LEARN MORE
+31-(0)164-271660
2012
Year founded
years and beyond. “We’ve got substantial projects already underway and our existing sites are filling up. Across Europe, most of our sites are full so
730,000 Pallet positions
1,000
Approximate number of employees
there’s extension work to be done on our sites in order for us to increase our capacity,” he explains. “We’ve already entered Australia and the US, with both our sites becoming busier, I believe there’s also possibility for new builds coming into those regions. Our immediate focus is to ensure that we bring in new business as we look to enter new markets. We’re always looking to grow and it’s a big part of
worldwide and we like to think we focus
our focus by scaling up our software
heavily on helping to bring that change
developers, operations people and
too,” affirms Maharaj. “In the early days
management team to ensure we deliver
of NewCold’s model, we dramatically
on our commitments and successful
reduced energy consumption and with
implementation of projects on-time
our customers becoming increasingly
and on-budget.”
more focused on sustainability, it has led to it becoming an important driver for us. We have a strong philosophy around sustainability and we want to help bring a greener future. There’s still more to do — we aren’t finished yet.” Looking to the future, Maharaj has a clear vision of the position he hopes NewCold to be in over the next few w w w.busi ne ssc hief. com
135
Retail Business Services: the importance of collaboration
136
WRITTEN BY
SHANNON LEWIS PRODUCED BY
MIKE SADR
NOVEMBER 2019
137
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R E TA I L B U S I N E S S S E R V I C E S , A N A H O L D D E L H A I Z E U S A C O M PA N Y
Paul Scorza, Chief Information Officer and Executive Vice President of Information Technology, discusses collaborative approaches to grocery retail tech integration
R 138
etail Business Services was launched in January 2018 to support Ahold Delhaize USA’s consumer-facing grocery retail
companies and online grocery retailer, Peapod. Retail Business Services provides innovative solutions by leveraging scale and expertise to ensure the company’s partners can focus on developing their local brands. “Since our first day,” Scorza says, “IT has had a seat at the table of the leadership team. Which has enabled us to successfully support these brands.” Paul Scorza is the Chief Information Officer and Executive Vice President of IT at Retail Business Services, having previously worked as the CIO and EVP for Ahold USA prior to the merger between Ahold and Delhaize in 2016. He brings with him 32 years’ experience at IBM, a job he took immediately after graduating college and in which he performed several software and service-related roles.
NOVEMBER 2019
139
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EMPOWERING THE ART OF RETAIL
toshibacommerce.com
Toshiba is proud to work together with partners like Getronics and Retail Business Services to lead the way in delivering more customer-focused shopping experiences. Through these dedicated partnerships, we are transforming retail by creating unique and compelling customer experiences.
INNOVATION TRANSFORMS THE CHECKOUT EXPERIENCE AT AHOLD DELHAIZE USA BRAND STORES Retail Business Services, an Ahold Delhaize USA company, is a leader in the supermarket industry and well known for its eye toward innovation, passion for great food and dedication to delivering value to its customers. Retail Business Services had a goal from its local brand partners - to increase throughput, front-end lane utilization and improve the customer’s experience. Based on long-term relationships and proven capabilities, Retail Business Services turned to Toshiba Global Commerce Solutions and Getronics, plus other key partners to achieve their goals and vision for its stores. The result: a unique convertible lane that transforms checkout. All lanes open, all the time. Retail Business Services came to its partners with a clear vision: all lanes open, all the time. With convertible dual-use checkout lanes, Retail Business Services was able to provide a technology solution to its brand partners to make the most of the square footage in stores by replacing attended lanes that were only used some of the time, with lanes that could be used 100% of the time for either self-service or cashier-led experiences. Through this solution, the stores can reduce lines during checkout and give customers the ability to choose the way they experience checkout; whether they want the personal touch of a cashier-attended lane, or the convenience and privacy of a self-checkout lane – all while preserving the speed and full function of their existing attended lanes. “Our partnership together goes back many years, but this project exemplifies our relationship as trusted partners and leaders in the industry. Our commitment was not only to project success, but also positive impact on store operations and bottom line results,” said Bill Campbell, VP, Head of Americas at Toshiba. Leading Together To achieve this, Toshiba leveraged their extensive retail store knowledge to contribute software development and hardware engineering expertise, Getronics acted as the Systems Integrator providing project management, engineering and software testing capability, and another existing partner designed the customized cabinet. The challenge? Create software functionality that allowed store associates to switch modes from Toshiba’s Checkout Environment for Consumer Service (CHEC), a software application designed to optimize self-checkout, to their Toshiba POS Application. To ensure cashier-led transactions continued at full speed, Toshiba modified existing software application functionality to suit unique specifications. Toshiba leveraged its TCx™ Elevate digital platform ensuring a seamless end-to-end solution to power the front-end allows cash tender during both transaction types. Toshiba customized communications to create a unique solution with multiple applications and hardware devices.
Close collaboration among the teams was the key to the successful design, development and deployment. “We are delighted to have contributed to the teamwork, integration and collaboration that supported Retail Business Services vision for helping their store brand partners transform their front-end,” said Aaron Hagler, Getronics’ Vice President of Software and Retail Solutions. To perfect the solution, Retail Business Services conducted prototype, lab, and in-store pilots, and gathered feedback from shoppers and associates. With this valuable insight in hand, the team refined functions to reduce operational risk in the rollout and prove value to the business.
Through extensive partner collaboration, we deployed an innovative technology solution that supports our strategy, Leading Together, while delivering our promise of a better place to shop.” Paul Scorza, EVP, Information Technology and CIO for Retail Business Services. When the rollout began, Retail Business Services ordered approximately 40 lanes. Less than a year later, they have placed over 435 dual-use lanes in 175 stores across Ahold Delhaize USA’s local brands, including Giant Martins (Carlisle, Penn.), Giant Food (Landover, Md.) and Stop & Shop. These convertible lanes have been met with glowing reviews from shoppers and cashiers alike. Shoppers have reported they appreciate the ability to choose their checkout method and skip the line while using the input belt to load large orders. Cashiers can scan a shopper’s cart quickly, with the added security and accuracy of cash recyclers for cash tender eliminating the complexity and time required to manage cash. In the end, Toshiba and Getronics stepped up as trusted partners and industry leaders to collaborate with Retail Business Services and partners to create a solution that exceeded expectations and delivered meaningful business value to the companies of Ahold Delhaize USA.
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“There’s a pull now where the stores are asking for innovation. Customers are demanding tech” — Paul Scorza, Chief Information Officer and Executive Vice President of Information Technology, Retail Business Services, an Ahold Delhaize USA company 143 The merger, he says, was an opportunity to confirm the company’s power of growth. While it did demand lengthy rationalization, bringing together the two IT systems, was a successful endeavour. The key was finding synergies. The merger ultimately allowed the corporation to increase investments in IT infrastructure, apply innovative initiatives, and bring new technology into its physical stores. “Ahold Delhaize USA recognizes the value of IT,” says Scorza. Collaboration is at the centre of success at Ahold Delhaize USA and Retail w w w.busi ne ssc hief. com
USTGlobal
®
New Retail Experience With Frictionless Checkout Store (FCS)
Today’s customers are looking for an incredible shopping experience inside the store that mirrors the online experience of shopping in a frictionless environment and virtual assistance that makes their shopping fun, interesting and engaging. UST Global Digital Retail team is constantly working on bringing innovative, practical, and cost-effective solutions for engaging customers while they are inside the brick-and-mortar store. Towards this, we have launched and implemented multiple interactive touchpoints that improve category margin, sales and leave the customer with a WOW experience with a reference to a supermarket chain. We see tremendous value of rolling out the solution across globally in convenience stores, universities, offices, fulfillment centers, and dense metropolitan cities.
UST Global aims to be a global partner in New Retail
Frictionless Checkout Store (FCS) is a cornerstone of our digital strategy to support the “New Retail” Patented technology enables end-to-end smart store solutions that offer personalized shopping experiences to the customer as well as improved store operation and labor efficiency An innovative shopping solution for brick-andmortar stores using computer vision, machine learning, and IoT UST Global along with its strategic partners including Intel, are behind implementing ‘FCS’ solution for the first store at the RBS office in Quincy,MA Vision sensors track which products customers pick up and put back, virtual baskets are updated accordingly Redefines the way people shop by eliminating the pain points of checkout lines and cashiers with algorithms, and customers’ digital accounts are automatically charged after exiting the stores
ust-global.com
CLICK TO WATCH : ‘THE NEXT GENERATION OF GROCERY RETAIL’ 145 Business Services. “You can’t get
have a good idea of what the brand
anything done without good partners,”
represents. Retail Business Services
affirms Scorza. From partnerships
develops tech in house whenever the
with local brands to collaborations
market fails to supply. Among this is
with other tech companies, these are
frictionless checkout, which allows
an integral part of Retail Business
customers to shop in-store without
Service’s business strategy. To ensure
having to pay at a checkout lane. Using
a strong partnership with local brands,
a mobile phone or scanner, they have a
Retail Business Services created the
preselected payment method associ-
Business Relationship Manager (BRM)
ated to their loyalty card and can leave
role, an account manager that works
through a special lane as soon as
out of local brands’ headquarters,
they are finished picking their goods.
attending staff meetings, and feeding
Scorza compares it to using an EZ
information back to developers and
pass when driving on toll roads.
service providers so the IT team can
Partnerships have allowed Retail w w w.busi ne ssc hief. com
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Business Services to keep on top of IT innovation. “One of the things you do as an IT organization is staff all the work you have to do,” he says. “You want a flexible workforce so that they can bring in skills that you may not have. I generally run 15-20% of my workforce using that flexible resource.” When it comes to project management needs, Retail Business Services turns to Apex and Sevenstep. To run a data center to support the
“ One of the things you do as an IT organization is staff all the work you have to do, and you want a flexible work-force so that they can bring in skills that you may not have” — Paul Scorza, Chief Information Officer and Executive Vice President of Information Technology, Retail Business Services, an Ahold Delhaize USA company
applications for Giant Food, GIANT/ MARTIN’S and Stop & Shop, both for application maintenance and support,
149
E XE CU T I VE PRO FI LE
Paul Scorza Paul Scorza is the CIO and EVP of Information Technology for Retail Business Services. Scorza has 40 years of experience in IT. Before joining Retail Business Services, Scorza was EVP, IT and CIO for Ahold USA. Prior to that, he spent 32 years at IBM in leadership positions including VP of Global Delivery, VP and Transformation Executive for Finance, Global Financing, Technical Support, and Application Portfolio Management, VP Americas, and Application Solutions Delivery Leader. Scorza holds a bachelor’s degree in computer science from the University of Massachusetts, Amherst, and a combined MBA and an M.S. degree in computer science from Marist College.
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Retail Business Services relies on DXC.
to change over POS systems six and
DXC has a decade long relationship
half years ago, Getronics was closely
with Ahold Delhaize USA compa-
involved. “I watched them install eve-
nies that has evolved over the years.
rything,” says Scorza. “Getronics was
Getronics and Toshiba have also been
truly a partner in the implementation
important to Retail Business Services
and cared about our business as much
both from a POS system and manu-
as we do.” The company also works
facturing standpoint. Toshiba runs
with Salesforce on its IT infrastructure.
point on the system for Giant Food,
“Salesforce is another great IT partner,”
GIANT/MARTIN’S and Stop & Shop,
affirms Scorza. “We have used their
while NCR focuses on Food Lion and
Mulesoft software for data integration
Hannaford. Getronics and Toshiba
and each brand has access to their
helped develop the customized code
Marketing cloud platform. Both tools
Retail Business Services needed
provide access to key information to
within the loyalty scheme that gave
drive business at each local brand.”
customers points off gasoline. When
Retail Business Services also works
legacy company, Ahold USA, needed
with other key partners, such as w w w.busi ne ssc hief. com
151
Wipro for support and development
wedded to a ‘must be invented here’
resources with key tools,
mentality,” says Scorza. “People
like Kronos.
stepped up as trusted partners.”
When Retail Business Services
The goal, Scorza says, is to ensure
wanted to develop a dual lane system
customers have a good experience
that could double as a self-checkout or
when they visit the stores. To keep
associate checkout lane, it partnered
up with innovation, Retail Business
with Toshiba and Getronics. Toshiba
Services uses a “fast follower” phi-
provided software development
losophy as well. “We don’t always want
and hardware engineering expertise;
to be cutting-edge,” explains Scorza.
Getronics brought software test
“Sometimes we let other people do the
capability and project management.
cutting-edge stuff, spend lots of money,
Ultimately, after prototyping, lab
and then we follow closely behind
work, and in-store pilots, the pro-
with something we know works more
ject was a success. It is in 145 retail
efficiently and at a fraction of the cost.”
stores and 380 lanes. “This was a
Retail Business Service’s lunchbox
good success story. No one was
frictionless store is similar to Amazon Go. w w w.busi ne ssc hief. com
153
wipro.com
Creating MEaningful Experiences Re-imagining Shopping Journeys Digitalizing Retail Unleashing Hyper–efficiency
Wipro helps retailers deliver superior customer experience and realize better business outcomes through its deep capabilities in Digital, Cloud, Engineering, Cyber-Security, Intelligent Automation, Analytics & Personalization.
155 Customers walk into a store, scan in using an app, pick what they want, and leave; no scanning of products required. UST Global was a key partner in the development of the frictionless pilot store technology. The world’s relationship with IT has changed in recent years, says Scorza. When trying to implement wireless capability in-store half a decade ago, he was met with some resistance. “In 2013, we created any kind of innovative solution because you couldn’t get the stores to adopt it,” says Scorza. “The industry just wasn’t ready. I was always trying to push solutions out w w w.busi ne ssc hief. com
R E TA I L B U S I N E S S S E R V I C E S , A N A H O L D D E L H A I Z E U S A C O M PA N Y
“ You can’t get anything done without good partners” — Paul Scorza, Chief Information Officer and Executive Vice President of Information Technology, Retail Business Services, an Ahold Delhaize USA company 156
NOVEMBER 2019
2018
Year founded
$44bn
Parent company, US segment, 2018
2,700
Approximate number of employees there. However, knowing this was com-
that customize in-store experiences.
ing, we partnered with Verizon to put
“We’ve got a bright horizon here,”
wireless capability into all Ahold USA
believes Scorza. “There’s so much
stores. This was their first entry into a
technology in areas you’d never expect
grocery store and Verizon did a great
there to be. You get out of college with
job partnering with us to make it hap-
a computer science degree and start
pen.” It’s completely the opposite now.
looking for IT companies. Never in my
It’s a pull versus push. There is a pull
wildest dreams would I have imagined
now where the stores are asking for
I would enjoy IT in a retail company. It
innovation. Customers are demanding
has been incredibly exciting here.”
tech.” This change has allowed Retail Business Services to shift its focus to creating an omnichannel experience. Artificial intelligence is the next step, Scorza affirms, prediction models w w w.busi ne ssc hief. com
157
158
Tivity Health: Digitally transforming healthcare solutions WRITTEN BY
GEORGIA WILSON PRODUCED BY
MIKE SADR
NOVEMBER 2019
159
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T I V I T Y H E A LT H
Paul Edmisten, SVP and CIO at Tivity Health discusses the evolution of the company and its journey towards digital transformation
F
ounded in 1981, Tivity Health is a leading provider of healthcare solutions for fitness, nutrition and social isolation. “Tivity
Health works hand-in-hand with its members, clients, partners and customers to create everyday opportunities for long-lasting health and vitality,” 160
says Paul Edmisten, Senior Vice President and Chief Information Officer. “Tivity Health’s goal is to be the leader in transforming healthy living for adults by empowering and engaging them to live their best lives through nutrition, fitness and social connection,” says Edmisten. Formerly known as Healthways, Tivity Health was “among the boutique darlings of the Nashville healthcare community, focused on disease management in the early years and transitioned to total population health and well-being,” comments Edmisten. “Healthways had been successful growing and transitioning the business over the first three decades, until they experienced performance challenges leading up to 2014.” Throughout 2014 and 2015 the company went through tremendous change from the board, to CEO and throughout the NOVEMBER 2019
161
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PERSONALIZING CONSUMER ENGAGEMENT AT SCALE ACROSS HEALTHCARE Healthcare organizations are increasingly treating consumer healthcare as a holistic journey. Consumer expectations have risen, driven by their experiences with digital technology in other industries. Today’s always-on, connected consumer interacts with brands across multiple channels and devices, and they expect a brand to know them across dynamic journey stages. Likewise, the always-on consumer’s health journey exists outside of the typical healthcare ecosystem. An individual’s actions, behaviors, and environment play enormous roles in continued health. Factors such as diet and exercise, access to parks and green space, and even how much natural light a person is exposed to throughout the day are known as social determinants of health, which can account for up to 40 percent of a person’s proclivity toward long-term health. Healthcare companies are now starting to use social determinants of health data to help guide consumers along their healthcare journeys; this is key with the total healthcare experience being a continuous path that reflects always-changing behaviors and environmental patterns.
KNOW ALL THERE IS TO KNOW ABOUT A HEALTHCARE CONSUMER Personalizing the consumer healthcare experience to shape a healthcare journey at an individual level is accomplished through the use of data. By ingesting and combining first-party, second-party, and third-party consumer data onto a single platform, a healthcare organization creates a unified consumer profile, or golden record, that lets the organization know everything there is to know about a consumer and informs the next-best action, or recommendation, that will help propel the consumer on the path toward continued health. The RedPoint Customer Data Platform™ connects all available data sources to create an accurate golden record that is updated in real time.
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T I V I T Y H E A LT H
“ Tivity Health works hand-in-hand with its members, clients, partners and customers to create everyday opportunities for long-lasting health and vitality” 164
— Paul Edmisten Senior Vice President and Chief Information Officer Tivity Health
organization.” In the summer of 2015, Edmisten became involved with the company following Alvarez and Marsal’s partnership with Healthways to restructure the company and to set a course for the future. “As I partnered with the executive management team, the board and Donato Tramuto, CEO of Healthways – and today CEO of Tivity Health – as the newly appointed CIO, we eliminated tens of millions of dollars in operating expenses, and ultimately landed on three options to move the company forward. They included continuing to work with the existing business units and products, managed through continuous change and transformation (the long-haul approach). The short approach was to shut down underperforming business units of the total population health business, and the third approach was to sell the total population health business.” Small parts of the business were sold leading up to July 2016, when Healthways successfully sold its total population health services business to Sharecare. In January 2017, Healthways rebranded as Tivity Health. “With the launch of Tivity Health and its divesture of the
NOVEMBER 2019
CLICK TO WATCH : ‘HEALTH IS MORE THAN A STATE OF BEING. IT’S A COMMITMENT TO DOING” 165 total population health business, our
a robust B2C data and technology
financial profile strengthened and
stack that align with Tivity Health’s
grew,” notes Edmisten. “Witnessing
strategy and objectives. Edmisten
first hand and being personally
highlights that, in order to align the mis-
involved in the series of events and
sion, mindset and operating model of
transactions that occurred during this
Tivity Health, the company had to
span of time was priceless. Something
transform the way they defined, deliv-
many never experience in business
ered and engineered its products to
and will never learn in business
create the desired consumer experi-
school,” notes Edmisten. Tremendous
ence. Donato Tramuto, CEO of Tivity
change occurred impacting all aspects
Health shared that “Paul Edmisten
of the company.
played a key strategic role during our
Since the divestiture, Tivity Health
transformation of Tivity Health. His
has evolved transforming its people,
pragmatic and transformational leader-
processes and technology to enable
ship has helped our company adopt a w w w.busi ne ssc hief. com
WHEN EXPERIENCE MATTERS Acxiom is proud to be Tivity Health’s strategic partner as we help the company successfully navigate its technology and digital transformation journey. The customer journey is complex, yet customers still expect brands to know and understand them and provide seamless experiences at every step. Acxiom has been helping the world’s best marketers and advertisers get more out of their data and technology for more than 50 years. We deliver data foundations through data products, identity management, marketing solutions and services, helping clients create the seamless, relevant and meaningful customer experiences marketers and customers dream of.
acxiom.com
product, data-centric and consumerdriven culture within Tivity Health.” “Tivity Health has been leveraging
the customer journey. “A big part of our strategic direction continues to be how we leverage data
Big Data for years,” comments
insights generated from our advanced
Edmisten. “What AI and machine learn-
analytics coupled with OMNI channel
ing permits us to do is learn more about
technology to enable, automate and
our members and consumers.
scale our member experience,” says
Traditional statistical approaches only
Edmisten. With these advanced analyt-
get you so far when dealing with Big
ics, Edmisten combined data
Data.” Tivity Health has already bene-
augmentation and artificial intelligence
fited greatly from AI to unearth
to gain insight into how members
important user personas among its
engage with their products and ser-
members with the aim of extending its
vices. “Those who know SilverSneakers
learnings to enhance applications in
love us, the problem is not enough
E XE CU T I VE PRO FI LE
Paul Edmisten Paul Edmisten SVP and CIO of Tivity Health, is responsible for innovation, delivery and support of the company’s technolog y and data solutions that enable its Healthcare, Fitness, Nutrition and Social Connection products. In 2015, Paul was leading engagements to improve performance and restructure companies at Alvarez and Marsal. Over 18 months, A&M engaged with Healthways to sell two business units to eliminate costs, resulting in the formation of Tivity Health.
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167
T I V I T Y H E A LT H
168
people know us,� says Edmisten.
engagement, they continue to innovate
Understanding our members needs
and expand capabilities through wear-
and wants will help us target our
ables, IOT and 5G to enhance
engagement through digital/TV mar-
consumer engagement, improve
keting or our channels that include web,
speed, and the desired outcomes for
call center, mobile and social.
our customers. “Extending our plat-
From a product engineering stand-
form and mobility solutions to integrate
point at Tivity Health, simplicity,
wearables and IOT devices enables our
reliability and scalability are the core
members and consumers to be more
focuses for its solutions. While the
connected, and we can learn more
company continues to refine their core
about their activity and nutrition habits
platforms optimizing the consumer
while enabling the desired consumer
NOVEMBER 2019
experience and loyalty. As the industry and consumers adopt 5G, and basic internet access is extended to rural America, Tivity Health will be able to positively impact millions of people who are suffering from social isolation and loneliness.” Social isolation and loneliness are major concerns leading to a number of health issues in America today. Currently, Edmisten is working on leveraging voice assistants, as well
“ A big part of our strategic direction continues to be how we leverage data, in particular through advanced analytics” — Paul Edmisten Senior Vice President and Chief Information Officer Tivity Health
as mobile and wearable technology to w w w.busi ne ssc hief. com
169
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“ In this very aggressive economy, talent and skills are hard to find, having a long-time partner in Stratfield gives Tivity Health the ability to meet this challenging demand” — Paul Edmisten Senior Vice President and Chief Information Officer Tivity Health
and disciplined in the approach that you take. You must align the entire organization around a consumer centric product capability to maximize the impact on customers and the bottomline financial result.” “We buy and integrate best in class technology solutions to enable our products and services. We partner with industry leading partners that bring best practices in the areas of Marketing Automation, ERP, CRM, Data Augmentation, and Resources/
drive customer engagement and
People. Each one of our partners
deliver online virtual trainers for exer-
brings a very unique capability, and it
cise. “As part of our efforts, we are
has been critical for our success as an
constantly innovating to address these
organization to identify and enable
challenges through IoT, mobile tech-
those strategic partnerships, establish
nology and wearable technology, as
close relationships and align on clear
well as creating automated independ-
objectives,” says Edmisten. Some of
ent platforms that are flexible and
the key partners include Redpoint,
cloud agnostic.”
Nuestar, Axciom, Oracle and Stratfield
“As a CIO, I am a big believer and proponent in maximizing the intersection
Consulting to name a few. An essential part of Tivity Health’s
of data and technology. While that
risk management is information secu-
sounds very simple and, on the surface,
rity. “Our Chief Information Security
straightforward, it’s an art to really per-
Officer, his team and his strategic part-
fect and differentiate the experience
ners are constantly assessing the
and value to a consumer,” comments
threat landscape through an agile
Edmisten. “You have to be intentional
Information Security program focused w w w.busi ne ssc hief. com
171
T I V I T Y H E A LT H
1981
Year founded
920
Approximate number of employees
172
NOVEMBER 2019
on identifying and remediating risk. We are constantly reviewing, researching and evolving our processes and controls to improve our protection level against emerging threats,” says Edmisten. Looking to the future, Edmisten sees two immediate opportunities emerging for Tivity Health. “With the acquisition of Nutrisystem and the passing of the CHRONIC Care Act, Tivity Health can provide – via a sophisticated supply chain – nutritional options on a large scale to seniors.”
173
In addition to these immediate opportunities, Edmisten sees emerging key trends in health and fitness that could provide opportunities for innovation at Tivity Health. “Health plans and healthcare organizations have begun leveraging data analytics to provide benefits that are personalized and customer-oriented. Additionally, health plans and organizations are utilizing Big Data to support clinical decision making, precision medicine, readmission prevention, chronic condition management and risk identification,” says Edmisten. Another area of focus for Tivity Health is helping to address w w w.busi ne ssc hief. com
T I V I T Y H E A LT H
174
the social determinants of health, “the way health plans can have the most impact when identifying and engaging with the right people is through data, algorithms and technology-enabled solutions,” says Edmisten. “Many of our health plan partners have invested in development of predictive models to support those at risk of social isolation and food insecurity to name a few.” Donato Tramuto, CEO Tivity Health shared “We have a tremendous opportunity within the company as we integrate Nutrisystem, and add a NOVEMBER 2019
“ Tivity Health has been leveraging Big Data for years. What AI and machine learning permits us to do is learn more. Traditional statistical approaches only get you so far when dealing with Big Data” — Paul Edmisten Senior Vice President and Chief Information Officer Tivity Health
158
Tivity Health: Digitally transforming healthcare solutions WRITTEN BY
GEORGIA WILSON PRODUCED BY
MIKE SADR
NOVEMBER 2019
176
Connecting the smart city ecosystem WRITTEN BY
GEORGIA WILSON PRODUCED BY
CRAIG DANIELS
NOVEMBER 2019
177
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QUALCOMM
Sanjeet Pandit, senior director, business development and head of smart cities at Qualcomm technologies, Inc., discusses the fragmented smart city ecosystem and how cities can benefit from innovative technology 178
F
ounded in 1985, Qualcomm Inc. is a leading multinational company that engineers, researches and develops semiconduc-
tor and telecommunications equipment used in thousands of products around the world. Its single goal is to invent breakthrough technologies that transform how the world connects, computes and communicates. “Qualcomm is a deep—down systems company, that looks at solutions with a systemic view. Making sure that not only the latest technology and inventions are implemented but that user experience is always kept in mind to deliver robust, sustainable and systemic solutions,� comments Sanjeet Pandit, senior director, business development and head of smart cities at Qualcomm Technologies, Inc.
NOVEMBER 2019
179
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QUALCOMM
CLICK TO WATCH : ‘ROBOTICS, 5G, AND AI IN THE INVENTION AGE’ 180 Pandit began his career in 1996 as
in one year, with its ecosystem part-
an engineer in the infrastructure divi-
ners robust practices. “When I entered
sion of Qualcomm, responsible for
this program, I realized that the smart
CDMA optimization of networks. In
cities space was extremely frag-
1999, Qualcomm’s infrastructure divi-
mented,” said Pandit. “When I wanted
sion was sold to Ericson where Pandit
to go and see what was happening in
began heading the Asia—Pacific
a given city, there was no single point
CDMA infrastructure sales and was
of contact covering everything it was
named salesman of the year in 2005.
implementing.” Additionally, Pandit
In January 2007, Pandit returned to
realized “there was no single database
Qualcomm heading the carrier rela-
which showed all the players that were
tions for international markets and
working on Smart City deployments.”
continued in this role for 12 years.
In response, Pandit set out to develop the
Last year, Pandit took over as Head
Qualcomm Smart Cities Accelerator
of the Smart City Division establishing
Program: “the glue between all
NOVEMBER 2019
181
1985
Year founded
$22.73bn+ Approximate revenue
35,959
Approximate number of employees w w w.busi ne ssc hief. com
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“ I don’t know how AI is going to shape up and change the landscape of smart cities, but I would say it is going to be the next big thing for the industry” — Sanjeet Pandit, Senior director of business development and head of Smart Cities at Qualcomm Technologies Inc.
imagined in 1996 that I would be able to order things on the internet to be delivered the next day. That’s where AI is today, and it’s only in its initial
ecosystem providers” to connect its
stage. I don’t know how AI is going to
members in their search for smart city
shape up and change the landscape of
solutions and relevant expertise.
smart cities, but I would say it is going
Smart cities are continuously evolv-
to be the next big thing for the space.”
ing. Key trends Pandit is seeing emerge
Pandit warns that the smart city revolu-
within the industry include surveillance,
tion isn’t going to be immediate. “You
edge computing, base computing, asset
won’t wake up one day to a different
management, public security, public
city; it will be a transition.” Gradual
WiFi and most importantly ‘smart tourists’, “We’ve seen a lot of cities utilizing one—stop apps for attractions, coupons and transport etc,” he explains. Looking to the future, Pandit sees the next big thing for smart cities being artificial intelligence (AI). “I never w w w.busi ne ssc hief. com
183
deployment of systems with faster
zone’ – a secure zone where users can
speed, high reliability, low error and low
implement code and make secure trans-
latency will be implemented to create
actions. “This is something that we take
a high—quality framework and infra-
very seriously. We have implemented
structure for the overall deployment
unique algorithms and methodologies
of automotive, 5G and mission critical
that people can invoke and utilize when
applications to create an integrated
it comes to security on the silicon itself,”
system where everything is connected.
commented Pandit.
For Qualcomm, security is given
Pandit does, however, acknowledge
the highest importance. Within its
that, although the deployment of
chip sets the company has ‘the trust
technology will help sustainability,
E XE CU T I VE PRO FI LE
185
Sanjeet Pandit Mr. Sanjeet Pandit is the Global Head for Smart Cities practice at Qualcomm, Inc USA and responsible for Carrier and Ecosystem relationships in this domain. His expertise in the telecom industry spans over 20 plus years. He specializes in the areas of Smart City design, creation of Smart verticals, digital transformation and go to market strategies creating an experience that would benefit public private domains and citizen engagements. Sanjeet has worked and created relationships with the Smart city ecosystem partners, resulting in multiple Smart City projects Globally. He joined Qualcomm in late 1996 and moved to Ericsson in 1999 following the sale of the infrastructure division of Qualcomm, moving back to Qualcomm in 2007. He has held various senior positions at Qualcomm and was responsible for APAC and India business development prior to leading the Smart city vertical.
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QUALCOMM
“ Our biggest success to date is making what people thought impossible, possible. From CDMA to EVDO data speeds, IT and even 5G we have proven everything is possible” — Sanjeet Pandit, Senior director of business development and head of Smart Cities at Qualcomm Technologies Inc.
186
NOVEMBER 2019
187
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189
efficiency and security, “deploying
number of separate projects such as,
technology for the sake of it is not
smart railways, ports, water parks and
something that Qualcomm promotes.
surveillance. One new project in the
When we deploy technology, we do so
discussion phase is the creation of a
with two things in mind: system—level
smart campus at the University
approach and how the technology will
of California, San Diego. “We are
benefit the city.”
trying to see how we could leverage
Currently, Pandit is working on
some of the new inventions and
a number of projects worldwide
technologies to create a framework
including a partnership with UROS
within the campus for smart park-
to develop smart water cycles and a
ing, smart transportation, smart w w w.busi ne ssc hief. com
QUALCOMM
190
NOVEMBER 2019
classrooms, remote learning, campus—wide WiFi, security surveillance and energy management.” To ensure these deployments are reliable, have low errors and low latency, the project would also involve a transition to 5G. Another significant project for Pandit, is Qualcomm’s recent implementation of surveillance solutions and public city WiFi in Mexico to improve connectivity. To complete the implementation, Qualcomm worked with JUGANU. The biggest thing Qualcomm does to ensure it stays ahead of trends is being first to market and having a solid research and development team. “We anticipate what needs to be implemented and work closely with standards bodies,” says Pandit. Qualcomm invests heavily in its team, particularly in the development and creation of new IP. “Whatever we build we try to advance our developments to be more robust and sustainable so that they are beneficial in the long run,” continues Pandit. Reflecting on the company, Pandit feels Qualcomm’s biggest strengths are its innovative mindset, its ability to stay ahead of its competitors, its w w w.busi ne ssc hief. com
191
QUALCOMM
192
“ There is a lot to be done, and we cannot do it alone […] we require the ecosystem partners to deploy and adapt to the technologies we have developed at Qualcomm” — Sanjeet Pandit, Senior director of business development and head of Smart Cities at Qualcomm Technologies Inc.
NOVEMBER 2019
193
end—to—end system perspective, its
adapt to the technologies we have
culture and its people’s ability to deliver
developed at Qualcomm, which is one
complex technology. “Our biggest
of the reasons why the Smart Cities
success to date is making what peo-
Accelerator Program is so beneficial, it
ple thought was impossible, possible.
brings the entire ecosystem together
From CDMA to EVDO data speeds, IT
under one roof,” concludes Pandit.
and even 5G, we have proven that everything is possible,” enthuses Pandit. “There is a lot to be done, and we cannot do it alone. IoT is an extremely fragmented space; we require the ecosystem partners to deploy and w w w.busi ne ssc hief. com
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NOVEMEBER 2019
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Redefining healthcare through innovation WRITTEN BY
PRODUCED BY
MATT HIGH MIKE SADR w w w.busi ne ssc hief. com
PA R T N E R S B E H AV I O R A L H E A LT H M A N A G E M E N T
Partners Behavioral Health Management is changing the way that healthcare is delivered, as Jamie Gianna explains
T
ransformation. It is a word that’s rapidly becoming synonymous with any multitude of industry sectors worldwide. And while
any transformation represents a game-changing journey for a business and its employees, few have the potential to be as significant as that which 196
Partners Behavioral Health Management is undergoing. The North Carolina-based managed care organisation (MCO), established around seven years ago, is currently in the midst of a digital transformation journey that has the potential to change how healthcare in the United States is defined and paid for. It is, confesses Chief Information Officer Jamie Gianna, both an “exciting and scary time” for the organisation and the state of North Carolina. North Carolina pioneered a public Medicaid managed care system for behavioral health and intellectual/ developmental disabilities in 2011. Next year, the state will move to an integrated healthcare approach for all individuals who rely on the public system for care. “We are right in the middle of developing and introducing many things that no one else has previously done before or even considered in terms of NOVEMBER 2019
197
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PA R T N E R S B E H AV I O R A L H E A LT H M A N A G E M E N T
“ We are leveraging the very latest and most innovative technologies that will position us as a true leader in managed healthcare”
198
— Jamie Gianna, Chief Information Officer, Partners Behavioral Health Management
the way in which managed healthcare services are provided. In doing so, we are leveraging the very latest and most innovative technologies that will position us as a true leader in managed healthcare, both in North Carolina and beyond.” Gianna is responsible for leading Partners’ digital transformation. He sits as a member of the Partners Operational Leadership Team, and rather succinctly describes his work as “trying to understand the organisation’s strategic targets based on the information and direction we get from the North Carolina General Assembly and North Carolina Department of Health and Human Services; while finding the right tools to fit and to meet those requirements.” In reality, Gianna is charged with strategic planning, leading mission-critical business initiatives and organisational objectives, and driving change that will result in improved customer service and go a long way towards achieving better healthcare provision for the population of North Carolina. Partners is a public, regional managed care organisation, overseeing
NOVEMBER 2019
CLICK TO WATCH : ‘PARTNERS | SUCCESS STORY: ILIANA’ 199 mental health, substance use disorder
of the whole person, which is a big
and intellectual and developmental dis-
driver behind our transformation.”
ability (I/DD) services available through
The purpose of Partners’ digital trans-
Medicaid, state and county funding.
formation, explains Gianna, is a focus
The organisation, Gianna explains, con-
on understanding the overall health and
tracts with care providers to ensure
healthcare needs of specific popula-
that treatment options are available
tions through leveraging technologies
for eligible residents across the state.
such as procurement platforms, predic-
“North Carolina is a large state,” he
tive analytics tools, and the integration
says. “The population is close to 11
of the organisation’s services network
million, and one in every 10 is eligible
so that it can manage the right services
for publicly-funded behavioral and I/DD
at the right time for its health plan
managed care. However, the system
members. “First and foremost, we
currently in place focuses on a portion
recognise that we need to be very agile
of a person’s wellbeing, instead
and mobile,” he notes. “The first target w w w.busi ne ssc hief. com
When people, systems and data work in harmony, a real, positive impact can be made on the health of individuals and populations. Learn More
care management technology solutions
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was driven from a population health and
Office 365 – so that, at any place and
predictive analytics perspective, which
at any time, anyone within Partners’
focused on understanding what our
executive team could access all the
total cost of care looks like, what do the
data and information. The transforma-
state’s population and demographics
tion journey is still ongoing, with Gianna
look like, and how that fits into the wider
outlining steps two and three, as well
financial and health strategies that we
as a longer-term vision. These steps
have. Having the ability to really get our
include “sourcing a trifecta of procure-
arms around that data and turn it into
ment management tools, including tools
something useful, meaningful and with
for population health and predictive
real purpose had to be the first step.”
analytics that can create health risk
To do this, two years ago, the organisation moved to the cloud – specifically,
scores, as well as portals for users and a platform that allows integration across 201
E XE CU T I VE PRO FI LE
Jamie Gianna Gianna is known for a tireless work ethic, energetic presentation, and hands-on approach to consultative solutions. Gianna has blazed a trail of achievement across industry sectors including healthcare, insurance, finance, legal, professional services, and professional sports. While he is an accomplished C-Suite executive, he is best known as a proven player with a history of reliable, dependable performance, innovative and future looking solutions — leveraging leadership and technical expertise. He has an MBA from the University of Maryland and engaged in his doctorate in Organizational Management. Currently resides in Charlotte, NC.
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PA R T N E R S B E H AV I O R A L H E A LT H M A N A G E M E N T
“ First and foremost, we recognised that we needed to be very agile and mobile” — Jamie Gianna, Chief Information Officer, Partners Behavioral Health Management
202
NOVEMBER 2019
203
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PA R T N E R S B E H AV I O R A L H E A LT H M A N A G E M E N T
2013
Year founded
$326mn Approximate revenue
460
Approximate number of employees North Carolina’s ‘healthcare universe’. We have been able to find and apply all the tools we need,” he states. “We are in the process of implementing them – the first ‘finishing line’ is imminent.” The scale of change within the state has placed North Carolina at the forefront of healthcare reform which, according to Gianna, “is what everyone is trying to achieve. The whole purpose – initially – is to collect and analyse as much data as possible, to really be able to understand exactly what the costs involved are and to ensure that every member can be cared for to the very best standard. That target
is phenomenal, and if we pull it off it will be huge.” Somewhat understandably, such change has required a significant realignment of structure and resources internally. This, says Gianna, hasn’t been easy and has proved a challenge at times. “We’re an organisation that, for some years, has had a lot of processes. We haven’t used specific tools and systems and have required people to really get on board with the new tools and understand the scope of the change. It’s all about introducing a new perspective. It is, after all, a fundamental aspect of being human: you either change and progress, or you don’t. Of course, it helps to know that the endgoal of our transformation is to achieve something truly good for many people. Working in healthcare and understanding the impact on the families we serve definitely changes the way in which you approach your work. Everyone on my team could go and work in other places and quite easily be very comfortable, but we’d never have the same sense of satisfaction that we get from helping people’s lives. That’s what matters the most.” w w w.busi ne ssc hief. com
205
PA R T N E R S B E H AV I O R A L H E A LT H M A N A G E M E N T
206
“ I would love to be able to collaborate with other organisations and to share the lessons learned across the state so we can deliver the very best standards of care” — Jamie Gianna, Chief Information Officer, Partners Behavioral Health Management NOVEMBER 2019
As with any transformation journey, there is still a lengthy road to travel for Partners. The organisation is on the cusp of achieving significant change yet, for Gianna, other technologies could also come into play in the future. “I’m already considering how we could use AI and machine learning for managing and analysing our data, for example. As we move through our journey, we will collect so much data. We are already focused on how we really leverage the technologies available to provide the best possible answers for that data. There is still a great deal to do but, looking further ahead, I would love to be able to collaborate with other organisations and to share the lessons learned so we can deliver the very best standards of care.�
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207
208
supply chain strategies in the energy sector WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
CRAIG KILLINGBACK
NOVEMBER 2019
209
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REC SOLAR
Josie Broome, Director of Procurement and Operational Excellence, discusses the success of her projects from an operational excellence standpoint
A
s a renowned leader in enabling complete commercial, public sector and utility-scale solar solutions, REC Solar has been in
operation for over 20 years and provided more 210
than 300MW of successful projects. Following its acquisition by Duke Energy in 2017, Josie Broome, Director of Procurement and Operational Excellence, believes there are a number of key factors that differentiate REC Solar from its rivals. “Duke Energy has brought stability and financial backing. There are several solar companies that don’t exist anymore, but Duke has been around for more than 100 years and I believe customers really appreciate the stability that Duke provides,” explains Broome. “The type of projects that we go after, in combination with the customers that we look for and how we implement those projects and source materials is very strategic and focused. We’re certainly not new to the game.”
NOVEMBER 2019
211
1997
Year founded
150
Approximate number of employees
w w w.busi ne ssc hief. com
The Right Partner for Your Project We focus on the North American Solar Industry with an emphasis on general contractors, subcontractors and facilities managers working on energy, commercial, industrial, residential and institutional project development. Our solar energy staffing experts understand your demand for proven industrial experience in every tradesperson we provide you, which is why we have been recruiting and hiring only the best people, matching them to your specific project needs. And if the tradespeople aren’t already located near your site, we’ll find local solutions or deploy travelers, no matter where you need them.
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CLICK TO WATCH : ‘REC SOLAR CUSTOMER STORIES – CAL POLY SAN LUIS OBISPO’ 213 Having come from an oil-oriented
observe how hard the work actually
background, Broome’s family owns
was and how difficult it is to earn money
a number of oil reserves, with part
that way. I believe that because of these
of its portfolio situated in the largest
early experiences, I learned that being
oil reserves in Utah within the Uintah
out in the elements, physical labor
Basin. “Not only did I grow up with
through the seasons, and being away
my dad and all of his siblings as they
from family is a tough job. The appre-
made a living in the oil and gas indus-
ciation I have for the men and women
try, our family history is also rooted for
out there building America has shaped
generations back to one of the largest
my view, work ethic, and approach to
oil reserves in the US,” she explains.
projects while always keeping the field
“I watched my dad and his brothers
in the forefront of my mind.”
work on mainline pipelines, and when
Having overseen dozens of projects
I was 20, I decided to work with them.
during her time at REC Solar, Broome
From this experience, I was able to
is specifically proud of a recent project w w w.busi ne ssc hief. com
REC SOLAR
214
NOVEMBER 2019
in Colorado which is the largest rooftop in the state. The project saw the installation of 17,000 panels spanning 19 acres and boasting a capacity of 6MW. “It was a real team effort. We worked together to secure the products that were used, found ways to reduce costs and achieve higher productivity in the field,” she explains. “Our typical approach is defined prior to the beginning of the project working directly with the field on setting up workstations, collaborating with them
“ Duke has been around for more than 100 years and I believe customers really appreciate the stability that Duke provides” — Josie Broome, Director of Procurement & Operational Excellence, REC Solar
on their instructions and providing guidance on the sequence of work. Every project is unique, it’s up to us to look for ways to maximize efficiency in material handling, loading the roof, and how the crews move throughout the site. We track all of that.” Broome has worked on a diverse and broad range of projects and her role is to influence them from a supply chain and operational excellence perspective. “In my previous roles at REC, I managed projects and project teams directly; from schools to hotels, cash to financed, on carports, roof, and the ground. The variety, volumes and regions are vast, however there are still opportunities to learn and improve.” w w w.busi ne ssc hief. com
215
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With technology becoming influ-
it into a sequel database, and mix it
ential to the way businesses conduct
into Microsoft Power BI to display,
operations worldwide, REC Solar
dig and analyze,” says Broome. “On
has implemented platforms such as
the supply chain side, we create our
Procore, the world’s leading construc-
commodity position frequently and
tion management software, as well
look at supply and demand by utilising
as drawing on the help of Salesforce
Salesforce for pipeline and Procore
for its CRM and JDE Oracle for its
for active projects. From the opera-
financials. “We leverage all the data
tional excellence perspective, we’re
from those platforms and combine
using the field data that’s coming
E XE CU T I VE PRO FI LE
Josie Broome As part of her role as Director of Procurement & Operational Excellence, Broome provides dual strategic direction for the innovation, development and implementation of business applications, intelligence, processes, and other business initiatives to support culture growth around supply chain and continuous improvement. Having begun her career in the architecture, planning and engineering industry in 2003 as a Planner at RRM Design Group, she managed various development projects that ranged in complexity and size. In 2010, Broome joined REC Solar’s project management team and went on to lead the company’s mid-market and Hawaii Business Units. Moving into the procurement space in 2017, it has allowed Broome to leverage her considerable experience leading teams through technology.
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217
REC SOLAR
218
NOVEMBER 2019
“ From the operational excellence perspective, we’re using the field data that’s coming from Procore to measure productivity and how and where we need to help the teams improve in the field” — Josie Broome, Director of Procurement & Operational Excellence, REC Solar from Procore to measure productivity and how and where we need to help the teams improve in the field.” However, Broome understands that new technology such as Big Data should be treated with caution to circumvent the risk of overreliance. “Too much data can be really overwhelming, and you have to dig deep to figure out what the data is trying to tell you,” she warns. “For us, it’s about being very specific on what data we’re looking for and what we want the field to collect w w w.busi ne ssc hief. com
219
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221 for productivity. We’re very specific
buys together,” she explains. “The
on what we want to achieve with cost
other strategy is the process of buying
reduction, and then we leverage that
different types of equipment and going
data to drive our supply chain forward.”
direct, they’re in the large-scale utility
With the industry constantly
space where we are a distributed
changing, Broome believes that by
generation. We have high transac-
working closely with Duke Energy’s
tional volume and communicate with
supply chain team, REC Solar can
our vendors weekly — it’s important
easily adapt to the sector’s changing
everyone’s on the same page.”
demands and has subsequently
Broome points to the importance
established two firm supply chain
of communication with other supply
strategies. “When there are any
chain professionals in the space, and
changes, both teams come together
key partners as a crucial component
to make decisions on the best ways to
for success. “We recently attended
leverage our volumes and make bulk
the annual Solar Power International w w w.busi ne ssc hief. com
REC SOLAR
222
tradeshow in Utah. I believe that talking to other like-minded individuals in the industry is so important because it allows you to get a good idea of what the latest trends in the sector are as well as forming new connections and building lasting partnerships. It’s important to acknowledge our partners share our overall goals and help to ensure that we keep costs low for the customer, while maintaining quality on time.� Pointing to her upbringing, Broome dwells on how her early life and career NOVEMBER 2019
“ I’m inspired by innovation and visionaries, and I now understand that I need to be the leader that I want to see” — Josie Broome, Director of Procurement & Operational Excellence, REC Solar
223
has shaped the influence she wants
is going to be based on how fast we
to have on others in the field. “I’m
can continue to adapt to the market
inspired by innovation and visionaries,
changes,” she notes. “Old ways of
and I now understand that I need to be
thinking, doing and being are not
the leader that I want to see. I’ve been
going to survive. We must stay ahead,
fortunate enough to have had some
act quickly and remain agile. I believe
pretty incredible leadership mentors
that being, nimble, performing quality
on my journey, and overcoming the
work and continuing to drive improve-
challenge of leadership is done by
ments will ensure we remain a leader
ensuring I’m the leader that I would
in the space.”
like and need.” With the future in mind, Broome has a clear vision of what she hopes her firm can achieve over the next few years. “Our future success w w w.busi ne ssc hief. com
224
Unilever: manufacturing a circular plastic economy NOVEMBER 2019
225
WRITTEN BY
WILLIAM SMITH
PRODUCED BY
CRAIG KILLINGBACK
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UNILEVER
© Perkins&Will/Unilever
Business Chief takes a closer look at the circular economy for plastic being instituted at and supported by Unilever
M
ultinational consumer goods company Unilever has, since its founding 90 years ago, diversified its offerings to include a
huge variety of items ranging from food to cleaning products. With over 400 brands, Unilever says on its website that on any day, “2.5bn people use Unilever 226
products”. According to Statista, the company’s market value in 2018 was $155.8bn, with revenues of US$56.612bn (€50.982bn), making it one of Europe’s largest companies. As of 2019, the company reportedly employs 155,000 people around the world. For a company as large as Unilever, any of its initiatives have the potential for huge knock-on effects. Because of this, it stresses the importance of research and development (R&D) to pioneer new approaches. With six R&D centres across the world staffed by 6,000 R&D workers and US$1.1bn (€1bn) of investment, the company says that “Innovation is at the heart of Unilever’s ambition to grow sustainably. Science, technology and product development are central to our plans to keep providing consumers with great brands that improve NOVEMBER 2019
227
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UNILEVER
“ Our vision is a world in which everyone works together to ensure that plastic stays in the economy and out of the 228 environment” — Alan Jope, CEO, Unilever
NOVEMBER 2019
their lives while having a positive impact on the environment and society.” Through these words, Unilever’s intent to position science and technology to meet the world’s environmental concerns can be understood. One of the principal considerations of fast moving consumer goods is necessarily packaging, and with such a focus comes the attendant environmental concern. Many of these packagings come in the form of plastics, with that category subdivided further still. Single-use plastics have come under particular scrutiny, with the European
CLICK TO WATCH : ‘UNILEVER 2025 PLASTIC PACKAGING COMMITMENTS’ 229 Parliament approving a complete ban planned to go into effect across the bloc by 2021. According to Unilever, the deaths of 100mn marine animals can be attributed to discarded plastic each year. “Plastic has its place, but that place is not in the environment,” said CEO Alan Jope in a press release. “We can only eliminate plastic waste by acting fast and taking radical action at all points in the plastic cycle.” In response to such measures, Unilever is helping forward the move towards a circular economy which not only uses less plastic but recycles, w w w.busi ne ssc hief. com
UNILEVER
230
reuses or composts the material it
it sells” – moves which have seen
does use. Currently, Unilever quotes
Unilever become the first company
figures suggesting that only 14% of the
of its kind to target a reduction in
world’s plastic packaging ends up in
plastic in absolute terms.
recycling plants, with only 9% going on
“Our starting point has to be design,
to be recycled. The company announced
reducing the amount of plastic we use,
that by 2025 it would halve its use of
and then making sure that what we do
virgin plastic via a reduction in the
use increasingly comes from recycled
amount of plastic packaging in the
sources,” said Jope in the press
order of 100,000 tonnes and by
release. “We are also committed to
increasing its use of recycled material.
ensuring all our plastic packaging is
It said it would also help to “collect and
reusable, recyclable or compostable.
process more plastic packaging than
This demands a fundamental rethink
NOVEMBER 2019
231
in our approach to our packaging and products. It requires us to introduce new and innovative packaging materials and scale up new business models, like re-use and re-fill formats, at an unprecedented speed and intensity.” Unilever’s endeavours in this area are backed by other concrete targets. 100% of Unilever packaging will have sustainability or recycling information by 2021, and 100% of packaging will be recycling ready or reusable by 2025.
“ We can only eliminate plastic waste by acting fast and taking radical action at all points in the plastic cycle” — Alan Jope, CEO, Unilever
All rigid Plastic packaging will be 100% w w w.busi ne ssc hief. com
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“ We see no paradox between responsible consumption, sustainable business, purposeful brands and better financial performance” — Alan Jope, CEO, Unilever
Cif ecorefill – a 10x concentrated refill that allows shoppers to buy one spray bottle, which they can then use for life
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Supply Chain Efficiency Demands a World-Class Supplier.
Put Your Trust in a Vertically Integrated Partner. Committed to Sustainability. Driven by Innovation. Graphic Packaging International is an integrated supplier of paperboard, cartons and machinery. We deliver packaging solutions and machinery systems using state-of-the-art technologies. Brand owners around the globe rely on us for our unwavering focus on quality and efficiency. Our products are made from paperboard, a recyclable material and made from renewable resources. When you choose Graphic Packaging International, you’re making a sustainable choice for the environment and your business. Learn more at graphicpkg.com Š2019 Graphic Packaging International the wholly-owned operating subsidiary of Graphic Packaging Holding Company (NYSE: GPK)
Community-based waste banks NOVEMBER 2019
US$56.6bn Approximate revenue
1872
Year founded
155,000
Approximate number of employees
post-consumer resin by 2025, and for the Hellmann’s brand specifically, 25% of turnover will be driven by refillable or reusable plastics by 2025. That brand, as well as Axe and Dove, are participating in the Loop Program to disruptively upcycle plastic waste via a process of depolymerization, in turn producing food-grade PET plastic and Polyester. These targets are all intended to benchmark Unilever’s progress towards its ultimate goal. “Our vision is a world in which everyone works together to ensure that plastic stays in the
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UNILEVER
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Unilever’s partnership with Mr Green Africa unlocks sustainable solutions to plastic waste management in Kenya
All Things Hair – a new model of eco-friendly shopping in the Philippines NOVEMBER 2019
economy and out of the environment,” continued Jope in the press release. “Our plastic is our responsibility and so we are committed to collecting back more than we sell, as part of our drive towards a circular economy. This is a daunting but exciting task which will help drive global demand for recycled plastic.” The move towards sustainability is not in conflict with the business imperative, however. In an interview with the BBC, Jope said: “We do believe in trying to remain relevant for younger groups of consumers as they come into the market, and we know that millenials really care about purpose and sustainability and the conduct of the companies and the brands that they’re buying. This is part of responding to society but also remaining relevant for years to come in the market. We see no paradox between responsible consumption, sustainable business, purposeful brands and better financial performance.”
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LSG Sky Chefs 238
WRITTEN BY
AMBER DONOVAN-STEVENS PRODUCED BY
CRAIG KILLINGBACK
NOVEMBER 2019
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LSG SKY CHEFS
Ricky Bivens, Head of Sustainability and Director of the Zero-Waste to Landfill program at LSG Sky Chefs, shares how the catering company is expanding its sustainability strategy across North America for a greener future
240
M
ore than ever, climate action is an essential corporate responsibility. LSG Sky Chefs, as part of the LSG Group, is an air-
line catering company committed to sustainability, working to reduce its carbon footprint, and leading by example. Ricky Bivens, Head of Sustainability and Director of the company’s Zero-Waste to Landfill (ZLF) program, has been a driving force behind this initiative since he joined the company almost a decade ago. He initially started off in the procurement department, responsible for a number of different categories, including waste. “Waste is a huge expenditure across North America and, while there are a number of variables, there are also a number of constants,” he explained. Once Bivens assessed these variables and constants, he devised the ZLF program: “While you can’t control the cost of a compactor, you can control what goes into it.” NOVEMBER 2019
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1941
Year founded
42
US locations
12,000+
Approximate number of employees w w w.busi ne ssc hief. com
LSG SKY CHEFS
“ While you can’t control the cost of a compactor, you can control what goes into it” — Ricky Bivens Head of Sustainability LSG Sky Chefs
SUSTAINABLE INNOVATION Bivens toured all 42 LSG Sky Chefs’ U.S. locations in order to evaluate how the template of the ZLF program would need to be modified to suit local jurisdiction and federal regulations. He explains that landfill was no longer an option because the ecological damage it was causing was becoming increasingly apparent. He worked with LSG Sky Chefs’ customers and the airports in order to see how they could assist in achieving each airport’s green initiatives and subsequently surpass
242
them. “As we work with the airlines, we try to adhere to and exceed their cost expectations through the ZLF system,” says Bivens. Due to the nature of working with the aviation industry across a number of states, it is also imperative to work closely with the local state police and federal authorities. LSG Sky Chefs also uses the ZLF system to work with its partners and suppliers, with the aim of becoming more sustainable. Bivens cites a partner who exemplifies how the ZLF program can create a positive effect: “We worked with a large waste company, Royal Waste, to examine NOVEMBER 2019
CLICK TO WATCH : ‘TAKE A PEEK INSIDE THE LSG SKY CHEFS CHICAGO FACILITY’ 243 its organizational structure in order
their methods. Whether it is the type of
to see how recycling could be better
plastic being used, the amount of pack-
incorporated into waste management.
aging, or their transportation methods,
Our partnership is mutually beneficial
together we challenge the vendors
as diverting from landfill benefits Royal
with ways in which they can improve
Waste, too.” Since then, Royal Waste
upon their carbon footprint. We may
has developed Material Recycling
meet with opposition but, more often
Facility machines to assist with waste
than not, they understand that if we
management, as well as reduce its
do what is environmentally correct,
carbon footprint. Bivens takes a similar
then the bottom line takes care of itself.”
approach with supply chain. “I work
For an initiative to truly take form, it
closely with our Head of Supply Chain,
needs to be embodied by the employ-
Rick Melvin, and I speak to a great
ees of a company. From a change
number of the companies that we
management perspective, Bivens
work with and question the need for
reflects that some individuals who w w w.busi ne ssc hief. com
greatly opposed ZLF initially are now
enter our locations across North
some of its strongest advocates.
America, they can see our employees
Each LSG Sky Chefs location has a
embrace this ethos from the top down
“champion,” as Bivens calls them, who
to an individual level. There is a strong
is responsible for pushing innovation
level of initiative across our teams,
through the ZLF program. As the initia-
and they work from monthly tonnage
tive has had time to take root, Bivens
reports and share ideas on improve-
shares that there has seen healthy
ment.” As the program grows, it is
competition between regions as to
receiving a number of accolades. In
who has the most innovative waste-
2014, the initiative won the innovation
reduction ideas. “It has been humbling
award for Business and Environmental
to watch the program come into its
Process, which was accepted in Hong
own,” he says. “When our customers
Kong. “Winning this award allowed us 245
E XE CU T I VE PRO FI LE
Ricky Bivens Recycling has been a strong passion of mine for many years, both professionally and in my home life. In my line of work I have had the opportunity to see the impact that waste has on our world – we’re closing landfills in many areas across North America, and so I strive to train and teach everyone in our company about our Zero to Landfill (ZLF) policy. Every year since 2012 the ZLF processes that we have put in place have seen thousands of tons of waste from landfill be recycled or repurposed. As part of this, we have vendors onboard that work with us to rethink how things are packed and delivered to us. We also work closely with our airline customers to reduce waste and increase recycling processes, and we are always looking for cutting-edge equipment that enables us to raise the bar in reducing waste to landfill.
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NOVEMBER 2019
“As we work with the airlines, we try to adhere to and exceed their cost expectations through the ZLF system” — Ricky Bivens Head of Sustainability LSG Sky Chefs
247
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LSG SKY CHEFS
248
“ When our customers enter our locations across North America, they can see that employees embrace this ethos” — Ricky Bivens Head of Sustainability LSG Sky Chefs
NOVEMBER 2019
to set a precedent across our international markets,” he says, adding that it has also received a number of local awards, largely from airports, across its units in Los Angeles, Denver, Boston, Portland and more.
CREATING A GREENER FUTURE Though the initiative started out as Biven’s “baby,” he is humbled to see how it has grown into a company-wide responsibility carried on by every member of the staff. “Though we still have a long way to go, we have already come very far, and the ZLF program is starting to generate a lot of attention. As he looks to the future, Bivens is pushing to introduce the Ompeco in the US, a machine used across Europe that features impressive waste-reducing capabilities of up to 80%. Though he expects to meet some pushback with the emergence of this machine in the States, particularly from waste companies, he asserts that it is the best thing environmentally and will assist the LSG Group in fulfilling its role in addressing climate change.
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NOVEMBER 2019
Envoy Mortgage RIDING THE DISRUPTIVE WAVE OF MODERNIZATION
251
WRITTEN BY
GEORGIA WILSON PRODUCED BY
SHIRIN SADR
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ENVOY MORTGAGE
Business Chief USA speaks to Dan Mulberry (CIO, Envoy Mortgage) to discuss riding the disruptive wave of modernization
F
ounded in 1997, Envoy Mortgage is a national retail mortgage lender, operating in 49 states and originating
approximately $3bn annually. Envoy Mortgage 252
focuses their efforts in the distributed retail sector in order to best serve customer and referral partner needs. Two years ago, Envoy Mortgage was bought by a private equity investment firm. Envoy CIO, Dan Mulberry, describes the firm as a “very committed partner.” The company provides a strong capital base for Envoy and maintains a forward-thinking vision as it embraces change in order to remain viable in present and future markets. Mulberry ensures that Envoy also adapts to a forward-thinking mindset when it comes to their technology ventures. He is the key component to Envoy’s shift from older core technology to defining a transformative path for the company, integrating processes and updating
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Smarter Mortgages From Application To Close The Cloudvirga Digital Mortgage Platform uniquely combines a world-class borrower experience with an automated lender workflow that radically cuts overall loan costs, increases transparency and reduces the time to close a loan. Learn More
cloudvirga.com/contact-us
cybersecurity. These technological
couple of years these regulations
advancements have allowed Envoy to
have loosened and were replaced by
adapt for the future.
increased scrutiny from state regula-
“Culturally the mortgage industry has a history of being very slow to make changes. This was partially
tors,” says Dan Mulberry, Envoy’s chief operation officer. Envoy Mortgage currently operates
driven by the financial crash as new
in 49 states across the United States,
regulations came into place and took
resulting in strict mortgage require-
precedent to ensure compliance
ments from each of those states.
with federal, state and local govern-
Therefore, it is imperative that Envoy
ments. After the Financial Crisis,
remains at the forefront of evolving
the Consumer Financial Protection
technology in order to diminish the
Bureau (CFPB) really stepped up and
ongoing challenge of catering to mul-
added new regulations and increased
tiple complex regulations.
enforcement. However, in the last NOVEMBER 2019
“Over the years, when businesses
CLICK TO WATCH : ‘LOVE YOUR MORTGAGE EXPERIENCE WITH ENVOY’ 255
“ Our vision is to be a leader, we want to be sure we are offering loan officers the best industry tools” — Dan Mulberry, CIO, Envoy Mortgage
invest in modernisation, it is usually for front-end developments. This advancement gives consumers the ability to complete business online,” adds Mulberry. With continuous entrants into the market space, Mulberry believes it is crucial to remain ahead of the curve when it comes to any modernisation. “We haven’t been disrupted yet, but it is only a matter of time. Because of this, we need to be at the forefront of technology. Improving our tools and processes makes it easier for our loan originators to improve w w w.busi ne ssc hief. com
“We haven’t been disrupted yet but it’s only a matter of time” — Dan Mulberry, CIO, Envoy Mortgage
NOVEMBER 2019
efficiency,” says Mulberry.
automation,” explains Mulberry.
Currently, machine learning, arti-
In recent years, Envoy focused
ficial intelligence (AI) and OCR for
on RPA to integrate its front and
data conversion are being used for
back-end systems, which was a “very
front-end services. However, Envoy’s
beneficial, quick win” that eliminated
goal is to also utilize these applica-
manual processes. Since then,
tions for back-end processes.
Mulberry and Kim Hoffman, Envoy
“One of the main issues faced
COO, have implemented Cloudvirga,
within the mortgage industry is the
an advanced point of sales system,
manual processing of multiple state-
as part of a two-fold modernisation
ments and third-party data, opening
process of integration and automa-
up the possibility for human error.
tion. Once fully operational, the
We want to eliminate glitches to
system will give customers a powerful
increase the integrity of data with
self-service option, allowing Envoy to
Dan Mulberry
E XE CU T I VE PRO FI LE
Having worked in the mortgage industry for over 35 years, Dan specializes in leveraging technology to maximize efficiency and profitability, while improving customer experience. His expertise extends to technology discovery, process improvement and digital adaptation, while consulting executive leadership teams on industry-leading and forward-thinking initiatives. Dan began his tech career in the finance and capital markets sector and his experience has included running secondary marketing for a top lender, as well as holding various SVP roles strategizing and managing all B2B technology and implementation. w w w.busi ne ssc hief. com
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ENVOY MORTGAGE
1997
Year founded
$20.mn+ Approximate revenue
1,300
Approximate number of employees 258
NOVEMBER 2019
impacting the mortgage origination experience. The business selected ClaySys as a strategic partner for RPA, supporting it through the deployment and configuration of the ClaySys RPA Genie platform. This platform has enabled the automation of processes touching both internal systems and people at Envoy, and external, third-party systems tied to the process. Envoy also leverages ClaySys’ RPA domain expertise to re-invent certain key process configurations that significantly enhance the customer experience. “Ultimately, Envoy’s shift towards automate pricing, rate locks, generate
modernisation is about helping loan
disclosures and payment of appraisal
originators conduct business effi-
fees, removing these manual tasks
ciently in the way that best fits their
from loan originators and making it
marketplace and the product mix they
easier for them to conduct business.
are going after, while ensuring its pro-
Additionally, Cloudvirga will give loan originators a simple platform to view all applications and uploaded
cesses are standardized and automated where possible,” explains Mulberry. Mulberry believes that human
documents in one central location, with
interaction will never cease but is
clear indication of any outstanding
continuously evolving. With the use of
documentation needed to increase
automation, the way loan originators,
submission efficiency to underwriters.
assistants and processors interact
Embracing RPA has enabled Envoy to automate multiple key processes
will change to become more consumer focused. Eventually, in the next w w w.busi ne ssc hief. com
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ENVOY MORTGAGE
260
“ We want to be at the forefront of technology improving our tools and processes making it easier for people in the field to do their job” — Dan Mulberry, CIO, Envoy Mortgage
three to five years, Mulberry wants to see a process where AI pulls most data required and consumers provide minimal information. “The mortgage process will never be like an auto dealership where you walk in, apply for the loan and sign the papers within an hour, because compliance does not work like that, but we do believe that the process can be automated for the bulk of loans where consumers are only required to schedule the closing within the compliance time period,” says Mulberry.
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261
Looking to the future, Mulberry’s
out modern capabilities, such as,
vision for Envoy is that the company
intelligent workflow, real-time data
becomes a leader in adopting new
analytics, predictive analytics, block
technologies as they become read-
chain and automation for its underwrit-
ily available. “We want to be sure we
ing processes. Simultaneously, Envoy
offer our loan originators the best
remains hyper focused on stimulating
tools in the industry, so we are focus-
innovation by identifying pain points
ing on ensuring we have a core open
within the business to improve its
architecture platform that allows the
offerings to the mortgage industry and
integration of tools and capabilities we
ensure precise time management.
need to achieve our journey towards automation, transformation and modernisation,� notes Mulberry. In addition, Envoy is planning w w w.busi ne ssc hief. com
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Integrating resources to drive customer value WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
JAKE MEGEARY
NOVEMBER 2019
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T E L U S D I G I TA L
TELUS Digital, the digital transformation arm of telco giant TELUS, is unifying teams across the organization through a powerful Digital Platform
I
n the digital age, an increasing number of companies are establishing dedicated digital transformation arms to acceler-
ate the journey for themselves, their partners and their customers. A pioneer of this approach was Canadian telecommunications giant TELUS, 264
establishing TELUS Digital as a means to cement its position as a digital leader. “The journey started around seven years ago, and the foundation of the team was built around building up our web presence with TELUS.com,” says Ryan Kardish, Manager of the Digital Platform Evolution with TELUS Digital and experienced in the AI and analytics spaces. “In the modern world of telecom, you’re seeing customer demands and preferences, shift towards self-serve digital experiences, especially in the research and learn phase of their journey. The question was: how can we improve the customer engagement with the breadth of products and services that TELUS can offer through the digital channel? I see that as ground zero to the digital transformation story.” Steve Choi, Manager of Data Products at TELUS Digital, adds that catering to NOVEMBER 2019
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1990
Year founded
CA$14bn+ Approximate revenue
59,000+
Approximate number of employees (TELUS International) w w w.busi ne ssc hief. com
T E L U S D I G I TA L
“ We now have the ability this shifting landscape necessitated the birth of the dedicated digital arm. to build intelligent “In the past, we didn’t have the right systems and organizational structure to support the applications that really transformation,” he says. “That’s why there was this idea to spin off the digital take advantage of data group as a way to incubate new ways that we’ve had all along of working with an agile approach to but never had the means delivering value, iterating quickly, and being able to experiment.” to use effectively” Over time and along with shifts in 266
— Steve Choi Manager, Data Products TELUS Digital
NOVEMBER 2019
consumer expectations, particularly around mobile, TELUS needed to consolidate silos, technology stacks and
CLICK TO WATCH : ‘THE ROLE OF CULTURE IN DIGITAL TRANSFORMATION’ 267 simplify the path to production to cre-
because their needs are similar across
ate consistent digital experiences. The
the capabilities we’re building,”
solution, a recipient of the ‘Open Digital
explains Choi. “Every team is looking to
Ecosystem Platform of the Year’ award
expand and build their digital presence,
at the 2019 TM Forum Awards, is the
and use these technologies to better
Digital Platform - an ecosystem of tools
serve our customers.” Through the
and solutions that enable teams to
Digital Platform, TELUS has an
develop and deliver cutting edge cus-
exceedingly powerful tool that simpli-
tomer experiences in a seamless,
fies the developmental processes for
collaborative manner. “As all these
teams across the organization and rep-
teams spun up to develop new func-
resents an exciting new level of
tions, we recognized the opportunity to
collaboration. Through the compilation
start investing in shared capabilities,
of resources that can be used again
shared technologies and shared
and again, TELUS has a resilient outlet
resources across those teams
for scalability and reliability in its w w w.busi ne ssc hief. com
T E L U S D I G I TA L
development processes. “I always struggled with how best to explain this,” admits Kardish. “However, I now think about it in the context of: what are the steps for building a modern digital application? It’s everything from sourcing the right data from your systems of record all the way to ensuring that you’re investing in the personalization and consistency of the content and design components a customer can see, and so on.” The Digital Platform’s integrated capabilities enable each of 270
these steps, as well as affording the opportunity for teams to contribute to the platform’s ongoing development. “Any individual who wants to build on top of the tools and technologies we have built can do so,” Kardish adds. Choi notes that the Digital Platform also solves a challenge experienced by
available on the Digital Platform, the
many large organizations: the segrega-
reuse of those resources drives con-
tion of data across different
siderable efficiency in the development
departments and teams. “A lot of
process of a new feature or application.
teams would go searching across the
Not only that, but the advancements
organization to figure out how to build
made to those resources through their
a particular experience, but there
reuse can then be used again in the
might be another group that’s already
future. It’s an incredibly organic pro-
tackled that challenge,” he says. With
cess, driving iterative, internal
the resources of that project being
collaboration that breaks down the
NOVEMBER 2019
“ We’re starting to truly recognize what it means to digitally transform, to collaborate and coordinate across the many teams and businesses TELUS operates” — Ryan Kardish Manager, Digital Platform Evolution TELUS Digital
E XE CU T I VE PRO FI LE
Steve Choi Steve leads the Data Products team at TELUS Digital, which is focused on building machine learning applications and reporting automation solutions within the digital ecosystem at TELUS. He is passionate about connecting data systems to generate new insights and drive incremental value.
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Building our customer’s business remains our primary focus.
Be it promoting their brands on stage, assisting their search for talent, providing them with essential digital marketing tools and service or celebrating their successes. Congratulations to our friends on the digital marketing team at TELUS for their continued success.
#buildingourcustomersbusiness
“A lot of teams would go searching across the organization to figure out how to build a particular experience, but there might be another group that’s already tackled that challenge” — Steve Choi Manager, Data Products TELUS Digital
barriers that have traditionally limited team-based development cycles. With the mantra ‘automate all the things’ being easy to spot on its website, it is no surprise that the expedition of the developmental groundwork for new applications at TELUS Digital is further accelerated by a robust automation strategy. Aside from the well-communicated benefits to businesses ranging from increased efficiency and accuracy to adding value to the daily tasks of staff, automation has also been deployed at TELUS Digital to gain a grip on ever-shifting customer trends. “As we look across the traditional channels at TELUS, specifically within our field tech and call
E XE CU T I VE PRO FI LE
Ryan Kardish Ryan is a passionate leader and intrapreneur, leading the evolution of TELUS’ award winning Digital Platform. With a dedicated focus on delivering our customerfirst promise, he is driving forward our digital transformation mandate, and working hard so that anyone (customers and team members alike) can build a ‘Digital TELUS.’
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T E L U S D I G I TA L
PART N ERS Adobe “Adobe has been a key partner in our journey towards turning the data we collect into insights and action. They have evolved their solutions in ways that integrate well with the technologies we use. As a result, we’re able to deliver experiences that enable our customers and drive business value for our organization”
274
teve Choi, Manager, S Data Products
center experiences, what we’re starting to see is that both our customer and team member demands and preferences are changing quicker than ever before,” says Kardish. He adds that the challenge is mitigated by the shift towards chatbots, conversational interfaces such as smart speakers, unified agent desktops, and interactive voice response (IVR) tech which offer opportunities for accruing insight-rich data whilst necessitating a scalable NOVEMBER 2019
Red Hat “Our digital platform is hosted using OpenShift a Kubernetes orchestration platform by RedHat. OpenShift allows us to focus on delivering value to our customers while the infrastructure that supports and enables hundreds of applications is managed by RedHat. This relationship means that we don’t need to focus on managing, patching or scaling our infrastructure and we can focus on building great products.” Aron Reid, Director, Technical Operations & Infrastructure
and reactive approach to their implementation in new offerings. That being said, TELUS’ approach to data is not solely focused on current data accrued through its various customer-facing solutions. Through the cloud-based unification of different systems within the organization, TELUS Digital is unlocking the value of data that Choi says can even be decades old. “Historically, there’s always been a separation of what I consider operational data systems and analytical data systems; traditionally, the latter were second-class citizens,” explains Choi. “That was a practicality issue because, in the past, your compute and storage would be relatively expensive. With cloud, that’s changed. We now have the ability to build intelligent systems and applications that really take advantage of data that we’ve had all along but never had the means to use effectively. The scale of data, the velocity of data, it’s always been there, but now we have the means to keep up with it.” The key takeaway from TELUS’s transformation efforts, and indeed of the development of its staggeringly w w w.busi ne ssc hief. com
275
T E L U S D I G I TA L
276
“As we look across the traditional channels at TELUS, specifically within our field tech and call center experiences, what we’re starting to see is that both our customer and team member demands and preferences are changing quicker than ever before” — Ryan Kardish Manager, Digital Platform Evolution TELUS Digital
NOVEMBER 2019
effective Digital Platform, is that unifying technology reaps dividends. Across an organization as large and internally diversified as TELUS, the value of a platform that brings together the expertise and resources of each of them for the benefit of the company, its partners and customers cannot be overstated. “We’re starting to truly recognize what it means to digitally transform, to collaborate and coordinate across the many teams and businesses TELUS operates,” enthuses Kardish. “Recognizing that a lot of great work has been happening across the entire organization, taking the best of each world to create a set of solutions, best practices and standards that help define the guiding principles of how we can work and operate better as an organization, that’s when you get the big wins.”
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278
Inside WSP’s mission to bring digital integrity and smarter buildings to Canada’s property space WRITTEN BY
HARRY MENEAR PRODUCED BY
JAMES BERRY
NOVEMBER 2019
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WSP CANADA
Sharyn Gravelle, National Vice President, Telecom and Technology, and Terri Govang, Director of Technology for Western Canada for WSP talk IoT, 5G, cybersecurity and the future of smart property development
T
oday, more than half of humanity lives in cities. The United Nations predicts this proportion will rise to 68% by 2050,
adding 2.5 billion people to the world’s urban areas. To promote successful coexistence within these 280
increasingly congested jungles of glass and steel, city planners and developers in the public and private sectors are increasingly turning towards cutting-edge technology for solutions. “We’re standing at the dawn of another technological revolution, and keeping up with the speed of the coming change is key,” says Terri Govang, Director of Technology for Western Canada at WSP and an expert in smart building security systems. Govang, who started her career as an electrician and progressed from roles in integration and manufacturing to design and consulting services, joined WSP in November 2018. With 60 years at the forefront of progress in the professional services space, WSP in Canada is now a leading supporter of the companies engineering our hyper-urbanized, interconnected, Internet of Things (IoT) and 5G-powered future. NOVEMBER 2019
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$1,053.6mn Approximate revenue
1959
Year founded
8,300
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WSP CANADA
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“At WSP, we have a Future Ready®
is reshaping the smart building space
program that offers our clients a clearer
and how WSP is positioning itself to
understanding of what the future will
lead and benefit from the coming
look like,” adds Sharyn Gravelle,
technological revolution.
National Vice President of Telecom and Technology at WSP in Canada.
CLOSE CLIENT PARTNERSHIPS
“We look at four different pillars: climate,
Commitment to continually improving
society, resources and technology.
the quality and effectiveness of
We strive to make our designs ready,
processes, by educating both her
both for current design codes and for
team and her clients, is at the heart
the future we envision. This is where
of Govang’s role.
we add value for our clients.” Gravelle and Govang sat down with us to explore the ways in which technology NOVEMBER 2019
“The overall industry and the technology it employs has seen several changes over the last decade,
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and I’ve personally worked with hundreds of clients to educate and support them through these transitions,” she explains. “WSP has a long history of providing technology and telecom specialty services to an established client base. We strive to understand our clients’ business. Before commencing any design, it’s crucial to sit with the client in conversation about how they envision their building operationally.” Working closely to develop a clear
“ Ensuring end-to-end encryption between all devices is increasingly important. In fact, I’d say it’s crucial” — Terri Govang, Director of Technology for Western Canada, WSP
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for everything from aesthetics to
As technology evolves, the demands
core system functionality is a key
of the market do as well. “Clients are
differentiator for WSP.
more educated now than they’ve ever
“Our clients are competing to provide
been,” Govang explains. “They have a
elegant buildings, packed with ameni-
greater understanding of technology,
ties and world-class technology,” says
and these pioneers are ultimately
Govang. “Our focus is on offering the
seeking overall improvement in
kind of strategic advisory services that
building performance, operational
support design and project manage-
efficiencies, and improved user,
ment of enterprise security technolo-
employee and guest experiences.”
gies and programs, with an emphasis
Working with a team of seasoned
on intelligent infrastructure in high-
technology professionals, Govang is
performance buildings, digital adoption
at the heart of WSP’s efforts to both
and technological improvements.”
increase the interconnectedness and
NOVEMBER 2019
technological capabilities of its clients’
all over a building, campus or city, the
buildings, and ensure that those clients
vulnerability points for potential attack
remain safe in a rapidly-evolving threat
increase drastically, so ensuring
landscape. “With more devices being
end-to-end encryption between all
connected to your network, security
devices is increasingly important.
and integrity are often overlooked.
In fact, I’d say it’s crucial.”
With the digital era and the increasing adoption of IoT, yes, we can converge
A STRATEGIC IMPERATIVE
intelligence systems, capture analytics
Alongside the evolution of intelligent
and connect buildings across the city.
business systems, the need for
But as exciting as this may be, the
integrated security has grown, to
technological revolution has brought
the point where Govang argues it
with it a changing threat landscape,”
is no longer a technological issue,
she says. “If we disperse IoT devices
but a managerial and strategic one.
E XE CU T I VE PRO FI LE
Sharyn Gravelle Sharyn Gravelle is the National Vice President of Telecom and Technology at WSP in Canada. She is a strategic leader with strong acumen and progressive career experience spanning over 30 years with start-ups and large corporations. Having begun her career as a Radio Frequency Design Engineer in 1988, Gravelle has held diverse roles shaping the wireless industry from early analog to the current 5G landscape and continues to help shape Canada’s telecom and technology infrastructure. Over the last 6+ years, she has led a unified national team of 200 employees at WSP.
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NOVEMBER 2019
“ We use technology to create open and secure spaces, improve the flow of traffic or people and deliver a more sustainable, reliable solution” — Terri Govang, Director of Technology for Western Canada, WSP
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Great minds think together. Your business has unique design, security and operational needs. Axis Professional Services provides personalized advice and customized expertise to help you optimize existing surveillance systems and be able to meet the demands of tomorrow. There, when you need us. Visit us at www.axis.com/professional-services-us or call us at 1 800 444 AXIS, option 1
In the past, Govang often encoun-
experience, reduce waste, reduce risk,
tered organizational tendencies to
increase compliance and drive efficiency
sacrifice technology and security
through new and emerging technologies.”
investment for the sake of perceived
The driving capability behind all
convenience and cost. Today, that
these improvements that WSP is
simply isn’t an option.
delivering is the ability to gather more
“Above all else, a smart building is
high-quality data than ever before.
a secure building,” she says. “We use
“It wasn’t long ago that cameras were
technology to create open and secure
used to capture general overviews,
spaces, improve the flow of traffic or
which helped deter and reactively
people and deliver a more sustainable,
review safety or security in spaces.
reliable solution. Clients want to
That’s all changed,” says Govang.
leverage their investments to create new use cases, improve the customer NOVEMBER 2019
Working alongside one of its partners, Axis Communications,
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E XE CU T I VE PRO FI LE
Terri Govang As the Director of Technology for Western Canada at WSP, Terri Govang oversees the design, development and deployment of comprehensive security and technology systems and applications. Having begun as an industrial electrician, Govang has 13+ years of industry experience that she leverages to deliver modern and optimized approaches to security. She is an ASIS Certified Protection Professional (CPP ÂŽ), specializing in new construction and enterprise systems migration and upgrades. Her expertise is evidenced by her track record of mitigating risk, project planning and innovation.
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“ Above all else, a smart building is a secure building” — Terri Govang, Director of Technology for Western Canada, WSP NOVEMBER 2019
WSP is using IoT-enabled devices in order to provide its clients with better insights pulled from larger, more sensitive networks. Then, Big Data analytics allow WSP to draw actionable insights from that data. “What’s great about this is that all Axis devices support the application platform, which enables developers to leverage a lot of device processing power, which helps edge-based analytics that enable the camera to do more than it ever could before,” enthuses Govang.
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Looking to the future, both Govang
says Govang. “Gone are the days
and Gravelle see the capacity for smart
when technology and security were a
buildings to increase efficiency, security
nice-to-have extra option. Technology
and comfort as a key driver of the
has become the modern critical
digital evolution of urban environments.
infrastructure.”
“The market is evolving towards 5G and IoT — IoT being both massive IoT for large scale applications, and critical IoT for latency and other sensitive, niche applications,” says Gravelle. And as with any major paradigm shift, this evolution has rendered old practices obsolete. “Change is certainly the one thing that is constant,” w w w.busi ne ssc hief. com