Business Chief Canada Magazine – December 2018

CANADA EDITION DECEMBER 2018 canada.businesschief.com

A journey of sustainable revolution

SUSTAINABLE AND CUSTOMER CENTRIC

ROSS VIDEO EXPANDING ITS DIGITAL ECOSYSTEM Bill Pulcine discusses procurement transformation at the media giant

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Microsoft Canada Inc

A digital transformation in health

BIGGEST CAR MANUFACTURERS IN THE USA

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WELCOME

W

elcome to the latest edition of Business Chief Canada.

This month’s cover story throws the spotlight on Ross Video, the global manufacturer and supplier of live production technology solutions. Ross Video is “laser-focused on meeting the needs of our customers”, according to Bill Pulcine, Vice President of Supply Chain Management. “I think the fact that we’ve grown about 500% in 12 years, and have been able to integrate other manufacturing facilities from around the world into Ross Video’s Canadian manufacturing location, is an exciting and compelling story.”

We also hear from Accenture’s CTO and Global Technology Leader of the Industrial sector, Tilak Mitra, about Industry X.0. He sets out how this new framework underpins the digital reinvention of industry, through which organizations leverage advanced digital

technologies to transform their core business operations. This month also features insights from T-Mobile, Petal MD, Microsoft Canada and Nordex North America.

Elsewhere, we have exclusive content from Aerojet Rocketdyne and BrownForman. Plus, interviews with Collabera, Swedish Mining Automation Group and PepsiCo Ventures.

This month’s issue also looks at Las Vegas’ partnership with an Israeli tech startup that uses artificial intelligence to reduce traffic congestion and we also rank the Top 10 US car manufacturers.

Enjoy the magazine, and join in the conversation on Twitter: @Business_Chief Catherine Sturman catherine.sturman@bizclikmedia.com

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CONTENTS

12

CUSTOMER-CENTRICITY IS KEY TO ROSS VIDEO’S PERFORMANCE TRANSFORMATION

00

56

34 PEPSICO VENTURES:

accelerating startups through the Nutrition Greenhouse

46

City Focus

SAN DIEGO BIGGEST CAR MANUFACTURERS IN THE USA

Spreadshirt simplicity is key amid its digital transformation

70

CONTENTS

86 T-Mobile

118 BrownForman

136

150

Aerojet Rocketdyne

Collabera

174 Petal MD

162 Microsoft Canada

202 Swedish Mining Automation Group

186 The Nordex Group

218 Accenture

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

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12

CUSTOMER CENTRICITY IS KEY TO ROSS VIDEO’S PERFORMANCE TRANSFORMATION WRIT TEN BY

ANDRE W WOODS PRODUCED BY

ARRON R A MPLING

S U P P LY C H A I N

13

ROSS VIDEO

Broadcast media company Ross Video has an extensive procurement department that delivers end-to-end services to a global client base… We speak to Bill Pulcine, Vice President of Supply Chain Management, to find out more 14

T

he supply chain organization at live production equipment manufacturer Ross Video is

“laser-focused on meeting the needs of our customers”, according to Bill Pulcine, Vice President of Supply Chain Management. “I think the fact that we’ve grown about 500% over the last 12 years, and have been able to integrate other manufacturing facilities from around the world into Ross Video’s Canadian manufacturing location, is an exciting and compelling story.”

In the electronics world, it’s increasingly rare to find companies that do a substantial

DECEMBER 2018

S U P P LY C H A I N

Ross Video’s manufacturing facility in Iroquois, Ontario, Canada 15 amount of their own build. Subcontracting and offshoring have been constant trends in the electronics industry for the past two decades. Ross Video, however, bucks that trend. “The reason the Ross model still works so well,” says Pulcine, “is that we’re very high mix, low volume across a mixed model of manufacturing disciplines. Having our own shop allows us to be vertically integrated and also gives us the crucial ability to have direct control of quality.” Ross Video sells solutions in the broader sense and from a manufacturing angle offers a huge range of equipment to broadcasters, stadiums and arenas, as well as other vertical markets.

w w w.busi ne ssc hief. com

NKK Switches (NKK) is a world leading designer and manufacturer of innovative electromechanical switches. By designing, producing and selling the industry’s most extensive selection of electromechanical switches, NKK sets the standard for quality, stability and reliability in switch solutions.

NKK provides comprehensive full-service solutions to include system design, programming and value-added support by combining over 65 years of expertise and a true commitment to our partners’ success.

ROSS VIDEO

SUPPLY CHAIN STRATEGY Ross Video started life in Montreal back in 1974 and soon after established a manufacturing base in Iroquois, Ontario, Canada. As the televisual and media landscape changed, Ross and its procurement space moved with it.

“It’s an interesting market. I think part of the reason we’re successful and have been able to have this dynamic manufacturing setup here is that we service a quite specific market,” says Pulcine. “It’s not consumer goods. Scale is a very popular term these days but it 18

is not always the biggest concern when you are making very high-value, application-specific products. We’re not selling a billion units, and what we do make is highly variable. Approximately 45% of our business is essentially driven by printed circuit board assembly (PCBA), and we manufacture roughly 300 different PCBAs. There’s also a large amount of mechanical assembly and server-based products where melting solder isn’t a significant element. In a recent 12-month period we shipped over 2,000 different products on over 7,400 different orders to over 3,500 different end users in 98 different countries. To put DECEMBER 2018

S U P P LY C H A I N

CLICK TO WATCH : ‘ROSS END-TO-END VIRTUAL PRODUCTIONS WORKFLOW DEMONSTRATION’ 19 that in perspective, Apple currently makes about 27 products,” he adds. “You can’t run a business like this without a skilled and dedicated team. We have a very experienced group here that knows and understands both the specifics of Ross Video’s business needs and the requirements and dynamics of the electronics manufacturing industry in a broader sense.”

There are three main categories of inputs that Ross Video procures. According to Pulcine, a lot of parts are built to a required

The Ross Video Supply Chain Management Team

specification or drawing. “Mechanical pieces such as those used in our robotics w w w.busi ne ssc hief. com

www.smithweb.com

F

ounded in 1984, Smith sources, manages, and distributes the electronic components that go into everything from mobile phones and computers to appliances and directional drilling systems.

In 16 cities around the world, from Silicon Valley to Seoul, Smith’s legion of employees communicates in 50 different languages and dialects and buys and sells components 24 hours per day, with global annual sales exceeding $1.5 billion.

Smith is always moving: helping manufacturers navigate market shifts; customizing supply chain solutions; testing components using cutting-edge technology. With testing and logistics hubs in Houston, Hong Kong, and Amsterdam, Smith’s processes focus on critical issues, from quality management to counterfeit prevention and environmental safety. Smith’s operations, purchasing, and sales worldwide are seamlessly integrated with the company’s global IT infrastructure, offering real-time inventory and logistics visibility anywhere in the world.

Smith is the leading independent distributor of electronic components and ranks number eight among all global distributors. Smith’s Intelligent Distribution™ model adapts to ever-changing demands by providing reliable global electronics sourcing and logistics, regardless of distribution channel or locale.

ROSS VIDEO

products, or the bare-boards that are used in printed circuit board assembly, are our designs. We own them and there’s competition for our business from around the world. These items are built to print, and reflect the diversity of the finished products we sell. Once again, it’s high mix, low volume for these suppliers.”

On the other side of the coin, Pulcine and his team are buying other people’s designs, such as semiconductors and interconnect components. “We use the 22

famous names that people who know electronics would recognize; the same manufacturers are found in telecommunications products, computing and

Left to Right: Sandra Miller; Stockroom, Jamie Lake; Purchasing, Melanie Talia; Quality and Materials, Bill Pulcine, Deborah Dougherty; Export Compliance, Logistics, Order Entry, Order Management, Brad Somers, Master Scheduling/Planning

so on. In total, we are using over 5,000 different components from over 500 different manufacturers across our

electronic component manufacturers

current portfolio. These numbers have

who will sell direct to us, but they’re

doubled over the last six years as Ross

largely the exception. It’s a complex

Video’s product offerings have expanded.

ecosystem, really.” Ross Video uses

Most of the manufacturing suppliers

many distribution companies including

involved do not sell direct to compa-

NF Smith & Associates which operates

nies like Ross, but sell via a layer of

out of Houston. NF Smith deals in a

distribution. Ross uses a combination

massive line of electronic components.

of the largest international electronics

Smith has helped Ross Video keep

distributors and smaller niche players,

up to date with current component

where appropriate. There are some

price and demand trends in the supply

DECEMBER 2018

S U P P LY C H A I N

23

chain and is one of several key

important part of procurement strategy

suppliers, they are especially strong in

and helps us secure parts ahead of

the embedded computing space. “They

shortages. Smith also runs inventory

send us a monthly market intelligence

management and logistics programs for

report with details on key component

us. These programs help us consolidate

outlooks, shortage situations, and

our warehouse and shipping needs. We

manufacturer news,� Pulcine explains.

use Smith as a central pull location for

“As a global independent distributor,

components which helps us increase

Smith obtains market conditions from

operational efficiency and ensures our

its vast network of direct and indirect

supply chain runs smoothly. We have

sourcing channels. This report is an

similar arrangements with other w w w.busi ne ssc hief. com

ROSS VIDEO

distributors. Smith is among the most

solutions derived from hundreds of

flexible to work with.”

individual cards from dozens of

Finally, Ross has a multitude of OEM

24

companies. This cooperative effort

agreements in place. “Given the

gives users best of breed product and

diverse needs of our customer base, it

budget options, all while ensuring

doesn’t always make sense to design

common control and monitoring within

and build every element ourselves,”

the Ross DashBoard ecosystem.

says Pulcine. Ross has taken the OEM

Pulcine elaborates; “This means that

model a step further with its Emmy®

openGear partner companies can

award winning openGear® platform,

design and sell products (PCBA’s) that

part of the Infrastructure product line.

work in the Ross openGear frame. This

openGear is the industry standard

is unique. Competitors in this vertical

platform of choice for modular signal

typically deliver solutions that are

processing equipment. As the world’s

exclusive to their products. You can’t

first modular platform open to other

put anyone else’s product in their frame.

manufacturers, openGear provides

The Ross openGear solution gives the

An Acuity A3M switcher, part of Ross’ flagship Acuity line, features switches that Ross helped develop with NKK

DECEMBER 2018

S U P P LY C H A I N

customer a lot more choice and allows the platform to evolve rapidly”.

Ross works closely with other companies to develop the elements required to realize its product vision.

CEO David Ross has worked extensively with NKK to develop componentry for Ross products. “NKK is a Japanese firm that develops control switches – the human interface into our flagship product line of production switchers.

That’s a good partnership because we don’t own that design. We don’t own that technology. We’re not capable of making these switches – nor do we want to be – but we worked very closely with the manufacturer to develop the

“ It’s an interesting market. I think part of the reason we’re successful and have been able to have this dynamic manufacturing setup here is that we service a somewhat limited market”

— Bill Pulcine, Vice President of Supply Chain Management, Ross Video LTD

product that meets our needs.”

As technology evolves, so does the company’s procurement strategy. “If

make the supply chain better on all

we’re using company X’s semiconduc-

fronts. Sometimes that means intro-

tors, and then company Y comes out

ducing new competitive elements to

with a better one, and we’re in a design

the situation. You might be reasonably

cycle where we can pick up the better

happy with your supplier or suppliers,

one, we’re going to do it. It doesn’t

but that shouldn’t stop you from

mean that you end the relationship and

pushing to see how the situation might

never go back, because a lot of these

be improved. That may mean looking at

technology companies leapfrog each

competitors. We certainly value our

other. Their positions might change

suppliers and give them every opportu-

every six months to a year. There’s

nity to compete and maintain their

certainly a balancing act in trying to

business, but not in a laissez-faire way. w w w.busi ne ssc hief. com

25

ROSS VIDEO

CLICK TO WATCH : ‘ROSS XPRESSION REAL-TIME MOTION GRAPHICS OVERVIEW’ 26 We need to do this to be competitive and to drive value for our customers.”

GROWTH THROUGH ACQUISITION Ross Video has experienced rapid growth through the strategic acquisition of other companies and this directly affects the procurement function. “We have never acquired a company that was more than 10% our size,” Pulcine explains. “That said, we have made many strategic acquisitions that really changed Ross. We quickly went from two product lines to twelve. Buying up these other companies has expanded our ecosys-

DECEMBER 2018

S U P P LY C H A I N

tem. It’s still live production but not always the same customer base and often different verticals in that market.” According to the acquisition philosophy of CEO David Ross, the incoming products need to “touch the edges of the current product lines”.

For a long time, Ross Video was known as a production switcher company before it then expanded into another part of broadcasting known as ‘infrastructure’. Together these two lines defined Ross Video in the

The XPression hardware that enables Ross’ graphics solutions

market for many years. Subsequently, the company became very big in character generators – the software that enables graphics to appear on screen during live broadcasts – following the acquisition of a startup. “You might be watching a sporting event and one of the players makes a big play.

A graphic will then appear in the corner with his headshot and some statistics about how they’ve been doing, such as ‘Averaging 0.78 goals per game this season’. Well, that

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27

ROSS VIDEO

graphic has to be called up by an

or augmented reality elements

operator. The format of it will be

to broadcasts and help make programs

pre-canned, so to speak, but it’s

more visually interesting and compel-

produced on the fly in a live situation.

ling. Nine years after entering the

We have some very sophisticated

market Ross is now arguably number

software that allows you to create and

one in broadcast graphics.�

change the look of on-screen graphics in real-time, and add very sophisticated

A SHIFT IN STRATEGY

animations and effects. Taking this

That acquisition brought a whole

concept further, we can also add virtual

different manufacturing and supply

28

DECEMBER 2018

S U P P LY C H A I N

chain challenge to Ross Video’s

acquisition was key to sparking a major

traditional PCBA-based work as it

spurt of growth in the company.”

began manufacturing servers specifi-

Soon afterwards, Ross bought

cally engineered for the broadcast

another two companies that manufac-

market. “We buy commercially avail-

tured products related to its Infrastruc-

able, high-end motherboards, CPUs

ture product line. “They weren’t so much

and disc drives, and assemble them

competitors as complements to our

to make a custom-built application

existing product lines, and this again

specific server that is uniquely a Ross

expanded our reach. One company

product. The XPression graphics

was manufacturing video routers in

29

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ROSS VIDEO

Australia. The other company was manufacturing products mainly focused on embedding data into broadcast transmissions and was based in Ottawa. Again, the acquisitions touched on the edges of the pre-existing products and we added routing and data insertion to our range of solutions.”

Another product range Ross wanted to offer its customers was camera robotic systems. Robots are used in broadcasting to allow one person to control multiple cameras, as opposed to having an operator at every camera. “You can create more sophisticated and visually interesting camera moves with a 30

robot, so it’s an attractive solution for content producers. We acquired two robotics companies; one in Belgium, which was a small but fast-growing business, and one in California, which was a little more

Robotic products, such as the Furio pictured here, drove another significant expansion of Ross’ product line and underlying supply chain

DECEMBER 2018

S U P P LY C H A I N

C OMPA N Y FA C T S

• Ross Video provided the equipment, including Vision Production Switchers and SoftMetal Video servers, that were used extensively by the host broadcaster at the Vancouver 2010 Olympic Games

established and had a longer track record.”

This foray into camera robotics brought its own challenges to the supply chain team. “As you can well imagine, the supply chain to build a robot is completely different to the supply chain for building a server or making printed circuit boards. The challenges in the internal manufacturing processes are also completely different, as they were when we moved into embedded computing. Robots introduced a significant mechanical engineering challenge to the Ross team and, again, the capabilities of the supply chain organization had to morph to include a different supply base. As you can tell, all of these things are still related to live broadcast, so it’s still the same customer base.”

“We concentrate on quality, service and cost, which is not a revolutionary approach. Lifecycle management is extremely important, because of the heavy investment Ross chooses to make in R&D in order to stay at the forefront of our market. Significant product improvements require significant change management and new product introduction. New product w w w.busi ne ssc hief. com

31

ROSS VIDEO

introduction is much smoother when third parties such as subcontractors are not part of the equation. Inventory has a reputation of being evil, but the fact of the matter is that inventory is either what you make or what you bought to be able to make what you make. If there’s hardware in your product, inventory is what you sell – so why is it considered to be so evil? Inventory allows us to be responsive to our customers’ needs.

We have the best lead times in the industry and this is a definite competitive advantage.

Inventory only becomes evil when it loses its ability to turn into revenue. Our customers 32

need us to support them for typically ten to twenty years. You don’t make substantial purchase decisions without the expectation of long-term support. This adds another significant layer of complexity to supply chain management.”

GLOBAL PRESENCE AND THE SUPPLY CHAIN “Our presence in Europe, the Middle East, Africa, Asia Pacific and Latin America has increased dramatically. Over the last decade, we have moved from selling less than 20% of our solutions to these markets to now selling 50% to countries outside North America.

When we talk about supply chain here, we think of it as an end-to-end fulfilment entity, not just procurement. Yes, Ross Video’s DECEMBER 2018

“ Over the last decade, we have moved from selling less than 20% of our solutions to these markets to now selling 50% to countries outside North America” — Bill Pulcine, Vice President of Supply Chain Management, Ross Video LTD

S U P P LY C H A I N

C OMPA N Y FA C T S

• Ross Video Provides the switchers that are used by top music acts, including The Police, Bruce Springsteen, The Rolling Stones, The Who, The Red Hot Chili Peppers, Korn, Blink 182 and Rush, to run video for concerts when they’re on tour

supply chain team buys the parts, but we also manage the inventory, plan the shop build schedule, and coordinate configuration activities with the shop floor. We work closely with R&D, Sales and Marketing to manage product lifecycle. We take customers’ orders and provide them with acknowledgement of the order and a promise of delivery. We work in concert with the customer to handle the logistics of getting the goods to the end destination. It’s quite complex when you have thousands of different inputs into thousands of different outputs, sold to thousands of end users in almost every country in the world.”

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33

LEADERSHIP

PEPSICO VENTURES:

34

accelerating startups through the Nutrition Greenhouse As food and beverage companies scramble to cut through the noise, PepsiCo Ventures Group is giving startups the support they need as it expands into the US following European success WRITTEN BY

DECEMBER 2018

L AUR A MULL AN

35

w w w.busi ne ssc hief. com

LEADERSHIP

P

epsiCo is no stranger to innovation. From Pepsi to Lay’s,

Tropicana to Quaker Oats, the

food and beverage giant has sculpted brands that are now commonplace on grocery shelves across the globe.

Under its banner, PepsiCo has not only created its own iconic flavors and styles but it has also nurtured startups with capital investments and even acquisitions. It’s a good deal for both parties: with an ear to the ground, PepsiCo can stay one step ahead of

36

the hottest trends shaking up the sector, while newcomers can take

“ This isn’t something that you can do on your own. It’s a joint effort and there’s a lot of experience and guidance to be found” — Daniel Grubbs, Managing Director at PepsiCo Ventures Group

advantage of the wealth of experience PepsiCo has gained since it was founded over 120 years ago.

The engine behind these partnerships is the company’s trailblazing

management and more, the accelerator

investment arm, PepsiCo Ventures

proved to be a hit and now PepsiCo

Group. In order to push its venture

is bringing the scheme back to North

footprint further, last year the invest-

America to help start-ups gain an

ment arm launched the Nutrition

edge in the ever-competitive market.

Greenhouse accelerator in Europe,

At the helm of Pepsi Venture Group

a six-month program that gave 10

is Managing Director Daniel Grubbs.

start-ups €20,000 (US$22,500) and

Having begun at PepsiCo over five

matched them with a mentor from

years ago, he first cut his teeth in

PepsiCo. Offering guidance on

marketing and consultancy, helping

strategy, fundraising, supply chain

early-stage and mid-tier companies

DECEMBER 2018

37

navigate transformation issues and mergers and acquisitions (M&A). He says that this was the perfect precursor for leading PepsiCo Ventures Group’s agenda. Today, the Nutrition Greenhouse accelerator is underway in North America and the firm is also eyeing up future investments. But when hundreds and thousands of startups are vying to cut through the noise, what advice would Grubbs give today’s startups? w w w.busi ne ssc hief. com

LEADERSHIP

38

“ We want to bring together the expertise of our company with the spirit and passion of these early-stage companies” — Daniel Grubbs, Managing Director at PepsiCo Ventures Group

As well as having a real passion for what they do, Grubbs underlines the value of creating a network of employees and mentors who foster creativity and ingenuity.

“I think it’s really important that startups surround themselves with people, inside and outside of the company, who bring a lot of different perspectives; people can provide different counsel and advice. A lot of times, this isn’t something that you can do on your own. It’s a joint effort and there’s a lot of experience and guidance to be found.”

PepsiCo has a clear idea of what makes a successful brand and it’s got the figures to back it up: it’s now the third largest food and beverage company in the world and last year 22 of its brands generated more than US$1bn in estimated annual retail sales. Now a month into its North American Greenhouse Accelerator, Grubbs asserts that the startups involved will really benefit from working with people who’ve been in their shoes.

“Through the accelerator, we’re trying to understand where startups are at on their journey: so how they’re currently operating, what their

DECEMBER 2018

CLICK TO WATCH : ‘NUTRITION GREENHOUSE LAUNCHES IN NORTH AMERICA’ 39 goals are and where they want to be

across a wide spectrum of markets

post-program. Our mentors really sit

can really offer value.”

down and understand these dynamics.

One such company that PepsiCo

Then, it’s a matter of providing advice

Ventures Group has taken under its

on product innovation, product formula-

wing is Your Superfoods, a Berlin-

tion and some of the supply chain

based firm that makes superfood

challenges that they might be going

powder mixes for smoothies. “They’ve

through, for example.

taken a direct-to-consumer approach

“We’ve been through many of the

and are really authentic in terms of

challenges that they’re going through,”

sticking with their methods of deliver-

he adds. “We’re trying to help them skip

ing superfoods that are organic and

past these hurdles so that they can

without fillers,” says Grubbs. “They’ve

become more viable and more efficient.

grown from being just a German opera-

There’s a lot of different areas where our

tion and expanded across Europe and

expertise and our history of operating

the US. They really benefited from the w w w.busi ne ssc hief. com

LEADERSHIP

40

DECEMBER 2018

41

program and have continued to see

expansion,” notes Grubbs. “They’ve

acceleration over time.”

moved into the US market and they’ve

Last year’s winner of the European

continued to refine their positioning

accelerator program, Erbology, has

with consumers. Erbology has been

also continued on an upward trajectory.

one startup that’s really remained true

The London-based company, which

to what the brand is about whilst building

produces a line of powders, oils, snacks

a deep consumer following.”

and ingredients aiming to boost the

Armed with inventive sustainability

nutritional value of foods – used its

plans, unique taste propositions, trailblaz-

€20,000 winnings to develop new

ing technologies and more, innovation

products and raise brand awareness.

is rife in the food and beverage sector

“Erbology has really taken the reins and

and PepsiCo is keeping its finger on

continued to drive their portfolio and

the pulse. Through its venture group, w w w.busi ne ssc hief. com

LEADERSHIP

PepsiCo is keeping an eye on the food, beverage and snack sector as well as untapped opportunities of growth known as ‘white spaces.’

Now, as it expands its project to North America, PepsiCo is on the lookout for the next big thing – but what does that entail? For Grubbs, it’s important that the startup has strong business acumen and a long term strategy. “We focus on what segment they are operating in and whether it aligns with our long term perspective. We ask if they have developed 42

a proof of concept with customers even in new channels that could help the company grow. Have they put together a leadership team that we believe will support and drive the company?” By checking these boxes, PepsiCo wants to see the beginning of an impactful brand, one that resonates with customers and meets an untapped market.

Whilst the products on their own are crucial, the essence of the company and its connection with the consumer is also a prerequisite for PepsiCo. PepsiCo is also keen to work with startups which align with its ‘purpose with performance’ mission: an ethos that champions sustainable, long-term growth while leaving a positive mark on society and the environment. “We ask DECEMBER 2018

whether there is a sustainable element to the business,” says Grubbs. “We ask if the business model is rooted in an idea that is meaningful and important for consumers but is also financially viable. We’re looking for companies who are akin to the spirit of ‘performance with a purpose.’

As consumers are bombarded with information from media, bloggers, family and friends, the health and wellness trend is firmly at the forefront of the consumer psyche. People are on the lookout for healthier and nutritious foods – and they’re willing to pay for it.

Grubbs predicts that this will continue to remain a key trend in the future.

“Whether it’s food or beverage, a snack or a meal, I think we will see the continual evolution of more nutrient density in the market,” predicts Grubbs. “It’s

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43

LEADERSHIP

“ We’re looking for companies who are akin to the spirit of‘performance with a purpose” — Daniel Grubbs, Managing Director at PepsiCo Ventures Group

44

not just about the calories, it’s also about what it delivers for consumers in terms of health and lifestyle benefits.”

2018 marks an historic year for the PepsiCo family, with the company’s former CEO, Indra Nooyi, having stepped down after 12 years at the helm of the firm. As the first female boss of PepsiCo she helped to grow its revenue by more than 80%. “I think Indra has really defined what PepsiCo is today and even more broadly, what it means to be a leading consumer packaged goods company not just in DECEMBER 2018

45

North America but globally,” said Grubbs.

“The focus and attention towards

that we continue to head where our consumers are going.”

‘performance with purpose’ has been

For PepsiCo Ventures Group,

central to who we are and how we are

Grubbs says it will continue to work

operating and so, I think that legacy will

in partnership with early-stage

continue to stand.” Ramon Laguarta,

companies and to give back to the

former President of PepsiCo, has taken

food and beverage ecosystem. “As

over the reins, and Grubbs believes he

an organization, we want to offer

will continue the firm’s upward momen-

our expertise to these companies,

tum. “Coming from within PepsiCo,

we want to be supportive of the wider

Ramon understands what we are trying

ecosystem and we want to bring

to achieve,” Grubbs adds. “He is very

together the expertise of our company

supportive of the company’s progres-

with the spirit and passion of these

sive stance and he’s keen to make sure

early-stage companies.” w w w.busi ne ssc hief. com

TECHNOLOGY

46

Spreadshirt

simplicity is key amid its digital transformation AS TECH ADVANCES, KEEPING THINGS SIMPLE CAN DRIVE EFFICIENCY AND HEIGHTEN CUSTOMER EXPERIENCE, SAYS PHILIP ROOKE, CEO OF GLOBAL ECOMMERCE COMPANY SPREADSHIRT WRITTEN BY

DECEMBER 2018

OLIVIA MINNOCK

47

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TECHNOLOGY

F

rom promoting snappy slogans and allowing people to create to helping entrepreneurs and small businesses

thrive, global self-expression company Spreadshirt made its name as a European

T-shirt printer, but is now fast becoming a much more diverse, global entity. When we last spoke to CEO Philip Rooke, the company was just starting to expand in the US. Now, it has reached over €100mn revenue thanks in part to this new market and is looking to optimise efficiency and stick to its customer centric vision in order to help the European business grow in uncertain times where 48

productivity is ever more important.

“The majority of our business is European,” says Rooke. “That’s what drove us over €100mn (US$114mn) revenue.” Last year, Spreadshirt reached €106mn (US$121mn) in revenue, making €8.6mn (US$9.8mn) EBITDA. “This probably makes us the most profitable in our industry, and that’s because we’re able to concentrate on the right things.”

For Spreadshirt, the US marks a mammoth opportunity, but the region is not without its challenges. “America is a huge market – the average American buys 9.4 T-shirts per year, while the average German buys 4.5,” Rooke explains. “More importantly, in most European countries we have three DECEMBER 2018

49

“American companies are very good at being lean, agile and customer focused” — Philip Rooke, CEO, Spreadshirt

or four competitors – and are nearly always number one – but in America we’re tracking 200 companies to compete with.” In this relatively new territory, Spreadshirt must step up to the plate and enhance customer experience for the modern, tech-savvy consumer. “Americans are not very patient,” Rooke observes. “If your usability is poor, they leave for a competitor. We really had to work on getting the experience much simpler.

“American companies are very good at being lean, agile and customer focused,” he adds.

As such, a key transformation Spreadshirt has implemented, not only in the US but w w w.busi ne ssc hief. com

TECHNOLOGY

throughout its business, is to simplify

our customers do that in their spare

everything from production processes

time? I look with horror at how much

to its user platforms – not least mobile,

money I’ve spent on Amazon recently

which is important to nail down since

– most of it on mobile as it’s so simple,”

55% of Spreadshirt’s traffic last year

he adds.

was mobile. “With a lot of ecommerce,

Now, all development of the ecom-

all the browsing takes place on buses

merce platform happens mobile first,

or in bars when people are on the move

forcing the business to

or have a spare moment.

ensure the experience is

“By concentrating on mobile, it forces

50

as simple as possible.

you to simplify the consumer’s journey

“You can always imagine

so they can not only browse but easily

extra features, but they

buy on mobile. Is the platform simple

can make it harder

enough to create your own T-shirt or

to use. Every feature and

browse the creations of others? Can

function must be simplified,

DECEMBER 2018

right down to marketing communication

items. Coupled with the number of

because you can’t write two paragraphs

markets it operates across, Spread-

on why a premium T-shirt is better than a

shirt in 2018 is in may ways a complex

normal one – nobody’s going to read that

beast in which, as Rooke puts it, “there

on mobile. It forces everyone from web

are 10,000 things that could go wrong.”

designers to purchasing and assortment

This in itself has forced Rooke to simplify

teams to simplify.

his own outlook and that of his leader-

“Five or 10 years ago, the more

ship team. “There’s no way to manage

features you added the more exciting it

all that end to end – I’d go crazy. So,

was, but now people want to achieve

over the past couple of years, there’s

tasks really simply and as such the

been a big shift in how we manage

80/20 rule is cutting back in,” adds

the business.

Rooke. “You have to concentrate on what 20% of features, stocks, offering,

“I don’t manage or oversee all elements – I’ve employed people who are a lot

makes up 80% of your business.”

51

Across the board, from mobile ecommerce to the factory floor, digital transformation is certainly “forcing a lot of simplification,” according to Rooke.

This is especially challenging for Spreadshirt when its business model is anything but

“Five or 10 years ago, the more features you added the more exciting it was, but now people want to achieve tasks really simply” — Philip Rooke, CEO, Spreadshirt

simple – it has several businesses within it including people who sell on Amazon, directly to market, or create and buy or sell their own w w w.busi ne ssc hief. com

TECHNOLOGY

better than me,” he explains. “People used to write reports and ask for approval on what they were doing, but now we say ‘if you can turn this around, we don’t really care what you’re doing – we care what results you’re achieving.’”

Spreadshirt now uses a system called Objectives and Key Results (OKR), which is used by the likes of Google and LinkedIn, to empower various teams. Objectives for the quarter are agreed among directors and it’s up to individuals and teams to go away and achieve these however they see fit.

52

“That’s the only way to manage a complex international business,” says Rooke.

OKR allows empowerment to run right through the business. “People take responsibility. They care. They like the freedom of being able to think about how they can do things differently. Teams and individuals can really take ownership of what they’re doing.”

This is vital when as CEO, Rooke lives on a different continent to some of his teams and might only see them a few times a year. Having trust and empowerment in place means C-level executives have their time freed up to communicate where it matters. “When I’m talking to the Las Vegas factory, I’m DECEMBER 2018

“In the past, we thought things were clever if they were complex.

But actually, if someone can work out how to make something complex simpler – that’s the cleverest thing” — Philip Rooke, CEO, Spreadshirt

53

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54

DECEMBER 2018

talking about quality and cost improvements and why they matter – before, I was worrying about processes.

“We’ve abandoned nearly all the internal reporting – with the OKR system, and daily reports that show the KPIs that come out, it’s so much simpler and there’s less red tape. The whole mantra is around simplicity – trying to achieve something in a quarter is the simplest way to move it forward. People get rid of the big, complex ideas and brainstorm how to do things in a more complex way.

We celebrate that at Spreadshirt. In the past, we thought things were clever if they were complex,” Rooke adds, “But actually if someone can work out how to make something complex much simpler – that’s the cleverest thing.”

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55

CITY FOCUS

56

SAN D City Focus

DECEMBER 2018

Attracting over 35mn visitors each year, San Diego’s stunning landscapes, commitment to tourism and world-class business opportunities have seen the city thrive WRITTEN BY

CATHERINE STURMAN

57

DIEGO w w w.busi ne ssc hief. com

CITY FOCUS | SAN DIEGO

58

L

ocated south of Los Angeles, San Diego has become a hotspot for corporate and leisure travellers.

With ‘something for everyone’, the combined beach and city destination has become home to over a million US citizens, making it the second largest city in California.

Second only to its flourishing research, innovation and technology sectors, tourism is a dominant force, fully bolstering San Diego’s economy. Employing over 190,000 citizens, visitors have been found to spend close to US$11bn annually, with up to 70% spent at local businesses rather than accommodation.

DECEMBER 2018

59

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CITY FOCUS | SAN DIEGO

HISTORICAL SIGNIFICANCE Renowned as the birthplace of California, San Diego’s exceptional weather conditions and vast coastline which is often present on the US’ ‘Best Beaches’ lists have all fed into its nickname as ‘America’s Finest City’. Whilst a number of bars, restaurants and surf shops line its coastal spots, the city is also home to a number of preserved natural wonders, such as Switzer Can60

yon, Torrey Pines State Reserve and Marian Bear Memorial Park.

DECEMBER 2018

61

Popular with both locals and visitors to the city, Old Town San Diego State Historic Park is an area of regular tourist exploration, whereas iconic establishment, Balboa Park has earned the title of the largest park in San Diego.

Spanning over a thousand acres, the area is home to several tourist attractions, such as San Diego Zoo, as well as over 15 museums.

Balboa Park Gardens also provides a welcome space for visitors to relax and unwind. Reflecting its laidback vibe, over 300 parks and recreation spaces are situated across the city.

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CITY FOCUS | SAN DIEGO

ROBUST INFRASTRUCTURE Situated within an hour from Los Angeles, San Diego is a top destination for US and Canadian travellers. San Diego International Airport has witnessed a significant increase in construction projects to counteract the exponential rise in tourism figures, which reached up to 22mn in 2017.

Total employment figures at the airport have also risen by over 30% in the last five years, providing 118,000 residents with employment opportunities.

Whilst exploring the city is still popular, ferries have grown in demand as tourists 62

become more interested in exploring areas off the beaten track. A high number of car rental companies are also on offer to support this growing market. For those travelling across the city on public transport, San Diego’s Metropolitan Transit System (MTS) provides essential travel routes to most city and urban locations. The city’s light rail system and municipal trolleys also connect its downtown area to urban districts as well as educational and tourist spots.

Most importantly, The Port of San Diego remains central to the city’s flourishing economy and international trade. Providing over 40,000 jobs, ranging from shipbuilding to tourism, up to 800 businesses are situated at the Port’s iconic waterfront.

DECEMBER 2018

63

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CITY FOCUS | SAN DIEGO

64

DECEMBER 2018

65

THRIVING SOCIAL SPACES

showcased in the local neighbourhood,

From picturesque 19th century build-

Little Italy. Close to the harbor and

ings to modern architectural delights,

influenced by San Diego’s earlier fish-

San Diego’s blend of old and new is

ing industry and marine heritage, Italian

clear to see throughout its central

families settled in the city in the 1900s

Downtown area. Neighbourhood district

and have become a key part of the

Gaslamp Quarter continues to inspire

city’s dynamic culture. The area is also

all those who visit, where restored build-

renowned as a thriving café and restau-

ings are complemented by 19th century

rant spot, popular with food lovers and

street lamps lining the streets, and has

aspiring artists. A multitude of pubs and

become home to some of the city’s most

bars are also on offer, as well as a num-

acclaimed restaurants, bars and theatres.

ber of craft breweries, which continue

Nearby, the city’s multicultural flair is

to grow in popularity. w w w.busi ne ssc hief. com

CITY FOCUS | SAN DIEGO

EDUCATIONAL AND CORPORATE DOMINANCE Not content with increasing numbers visiting its tourist attractions, San Diego has also transformed into a hotbed of innovation for businesses. Its international reputation is not to be underestimated, where the University of San Diego, San Diego State University and the University of Southern California (USC) have all grown in status and demand. USC has also become one of the city’s largest employers.

Located close to Gaslamp Quarter and situated 10 minutes from San Diego Airport, non-profit corporation The San Diego Con66

vention Center has become a key lynchpin, contributing over $26bn to the US economy since its inception in the late 1980s.

Receiving the largest loan approved by the California Infrastructure and Economic Development Bank totalling $25.5mn, the center held 149 events in 2017, where up to 898,913 visitors were in attendance, creating a regional impact of $1.1bn. Conventions continue to bolster the city’s economy, where San Diego’s ComicCon event, for example, created the most financial impact for a singular occasion in 2017. Making a regional impact totalling $143.1mn, hotel and sales tax revenue also reached a staggering $3.14mn which goes into the city’s general fund.

DECEMBER 2018

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CITY FOCUS | SAN DIEGO

68

Supporting the city’s booming

pharmaceutical businesses and

medical and biotechnology sector, over

healthcare start-ups placing firm

100 events have been planned at the

roots in the city.

center this year, with medical meetings

Additionally, technology companies

forecasted to account for 46% of its

have become enticed by the advan-

estimated $1.2bn regional impact this

tages San Diego can offer. Electronics

year. Over 300 biotechnology

giants, Nokia, LG Electronics and wire-

companies and close to 100 contract

less cellular technology business

research organizations (CROs) which

Qualcomm have all based themselves

support the pharmaceutical sector

in the city; however, entrepreneurs

reside in the city, with a number of

have also been catered for.

DECEMBER 2018

69

San Diego’s Business Expansion,

Frequently ranked as one of the best

Attraction and Retention (BEAR) Team,

cities in the US, San Diego’s mix of

alongside its Economic Development

beach and city locations, historical

Department work with local businesses

significance, world-class dining, edu-

to provide financial incentives to encour-

cational and sporting facilities make it

age further employment opportunities.

one of the most popular destinations,

Entrepreneurs can also take full

and will see it remain a key player within

advantage of affordable license fees,

the tourist and corporate traveller market

in comparison with local competitors.

in the coming years. w w w.busi ne ssc hief. com

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DECEMBER 2018

BIGGEST CAR MANUFACTURERS IN THE USA 71

In this month’s Business Chief North America, we look at the leading automakers in North America which have the largest market share, originally revealed by Statista WRITTEN BY

CATHERINE STURMAN

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T O P 10

72

DAIMLER Selling over three million vehicles in 2017, Daimler has gained 2.2% share in the North American market. With a number of respected cars, trucks and motor cycle brands under its umbrella, the business has become the largest truck manufacturer worldwide, delivering financing, leasing, fleet management, insurance and mobility services, which are utilized by 20mn users worldwide.

Whilst the US is the largest market in the world for Daimler Trucks, the company’s increased focus on connectivity, autonomous driving and digital tools has seen it turn its attention towards the establishment of electric vehicles to support its growing market base. Its restructure as part of its “Project Future� has also seen Daimler also partner with Chinese tech giant Baidu to gain an edge over competitors.

www.daimler.com/en

DECEMBER 2018

73

VOLKSWAGEN GROUP ( EXCLUDING LAMBORGHINI ) One of the world’s leading manufacturers, Volkswagen Group has grabbed 3.7% share of the North American market. The majority of its plants remain situated across Europe, with a further 11 located in the US, Asia and Africa.

With a group sales revenue of over $265bn, the business has launched its ‘Strategy 2025’ program, encompassing sustainable mobility and autonomous. Recognized as one of the largest investors in research and development in Europe, the company has spent more than $59bn on battery cells as it pushes to electrify all 300 models in its range by 2030.

www.volkswagenag.com

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T O P 10

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SUBARU A subsidiary of Japanese transportation conglomerate Subaru Corporation, Subaru houses five warehouses throughout the US, supporting customers across America and Canada. Placing increased focus on reducing its environmental impact across its manufacturing operations, the company’s vehicles are growing steadily in popularity, where the business has gained 3.8% market share.

www.subaru-global.com

DECEMBER 2018

75

HYUNDAI-KIA Grabbing 7.5% share, Hyundai Motor Group owns approximately a third of Kia’s total shares. Kia also owns approximately 20 Hyundai subsidiaries, making this a unique partnership between two Korean car brands, as they continue to cement their presence within the North American market.

www.hyundai.com/worldwide/en

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HONDA MOTOR COMPANY Focusing on three main areas: mobility, robotics and AI, Honda Motor Corporation gained 9.6% in North American market share, where its manufacturing plants and luxury brands, such as Acura, continue to see increased demand.

Through its 2030 Vision, the company is set to place significant investment in upgrading its manufacturing and technology capabilities in order to unlock further value in relation to the user experience.

global.honda

DECEMBER 2018

77

NISSAN MOTOR COMPANY & MITSUBISHI Part of the Renault-Nissan-Mitsubishi Alliance, Nissan Motor Company and Mitsubishi have tied with 9.9% market share.

www.alliance-2022.com www.nissan-global.com www.mitsubishi-motors.com

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FIAT CHRYSLER AUTOMOBILES Set to improve the driving experience, Fiat Chrysler Automobiles (FCA) houses 36 manufacturing plants across North America, accumulating US$76bn in revenue in 2017. With approximately 91,000 employees and 10 R&D facilities in the region, the company gained 12.1% market share this year.

www.fcagroup.com

DECEMBER 2018

79

TOYOTA MOTOR CORPORATION A leader in the hybrid electric vehicles, Toyota Motor Corporation (Toyota) is a firm favorite in the North American market, gaining an impressive 14.2% market share. The company also holds a 16.6% stake in Subaru.

With the aim to remain ahead of the curve, the company is also placing significant focus on its carbon footprint and is set to introduce new technologies to provide a personalized experience across all of its product ranges.

www.toyota-global.com

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DECEMBER 2018

FORD MOTOR COMPANY Undertaking one of the largest manufacturing expansions in the company’s history, Ford Motor Company (Ford) is set to increase its capacity in the US. The second largest automaker in the country, the business achieved its eighth consecutive year of solid earnings and a positive operating-related cash flow in 2017, and has sought to amplify its operations within the delivery of smart vehicles and mobile services.

Its aim to undertake the production of autonomous and electrified vehicles for commercial use by 2021 has also seen the business invest in a number of new technologies and partnerships, gaining 14.2% market share in 2018.

www.ford.com

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T O P 10

GENERAL MOTORS Situated in the US for over a century,

an impressive 17.6% market share.

General Motors (GM) commitment

Producing some of the first afford-

to innovation has seen it become an

able electric vehicles for the every-

iconic brand that exudes quality.

day consumer, GM has also adopted

Its vast portfolio and focus on the

a sustainability strategy across its

customer has seen the business gain

supply chain, saving over 300,000

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DECEMBER 2018

metric tons of CO2 emissions each

autonomous vehicle technology to

year. Taking its focus on developing

retain its position within the North

quality mobility solutions even

American market.

further, the company and its rival

www.gm.com

Cruise have partnered with Honda to explore and develop exceptional

83

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86

DECEMBER 2018

TECHNOLOGY

87

Asustainable

telco WRIT TEN BY

ANDRE W WOODS PRODUCED BY

GLEN WHITE

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T- M O B I L E

We speak to Chad Wilkerson, Director, Sustainability & Infrastructure Sourcing at T-Mobile regarding the telecommunications giant’s ambition to use 100% renewable energy for all its operations in three years’ time…

T 88

-Mobile has an ambition: the

that are doing things differently in

telco giant aims to be using

energy sustainability across T-Mobile,”

100% renewable energy for

he explains. “With RE100 and our

all its operations by 2021. As sustain-

commitment to be powered by 100%

ability dominates the thoughts of many

green energy by 2021, we’re not just

industry leaders as well as their clients

buying green energy, but taking a whole

and customers, for a company as large

systems approach to sustainability. For

and expansive as T-Mobile, which

example, we’re working to make sure

covers manufacturing, IT, construction

our operations are as energy efficient

and much more, ambitions as bold as

as possible, we’re working to decrease

these require an agile and strategic

our carbon footprint and we’re support-

approach that will cause as little

ing third parties like the Nature Conserv-

disruption to its day-to-day operations

ancy to promote a low-carbon, clean

as possible. Chad Wilkerson, Director,

energy future. Our goal is to make an

Sustainability & Infrastructure Sourc-

impact on the whole sustainability realm

ing at T-Mobile, is the man entrusted

– and lead the wireless industry in this

with delivering this program – we

area. At T-Mobile we want to make the

caught up with Wilkerson at his Dallas

biggest impact we can, not just in the

office to find out more.

environmental space but really, in every–

“I get to lead a great team of people DECEMBER 2018

thing we do – that is the Un-carrier way.”

TECHNOLOGY

“ We’ve been relying more on electronic communications with our customers and about 70% of our clients have signed up for paperless billing” — Chad Wilkerson, Director, Sustainability & Infrastructure Sourcing, T-Mobile

89

Telcos can seem rather amorphous when it comes to internal processes and infrastructure, but of course there is a physical architecture that feeds T-Mobile’s processes and products. “Telcos do have an interesting model that you might not have in your normal retail or manufacturing footprint. Not only do we have retail stores, corpow w w.busi ne ssc hief. com

Building DAS Central Office Macrocell Small Cell

Mobile Switching Center Small Cell

Data Center

Delta’s comprehensive solutions to support future needs in Telecom infrastructure Delta’s misson is to provide innovative, clean, and energy-efficient solutions for a better tomorrow. Delta is proud to support T-Mobile’s commitment to sustainability with it’s high efficiency DC power systems, complete portfolio of 5G telecom enclosures, and low-emission stand-by generators.

#IoT-based Smart Green Solutions to Nurture Energy Efficiency in Cities Delta specializes in energy efficiency management and enhancement, enabling IoT-based applications in intelligent buildings, smart manufacturing as well as green ICT and energy infrastructure, which are the foundations of sustainable cities

www.deltaww.com

T- M O B I L E

rate offices, call centers and data

governance (ESG) model – we went

centers, we also have a massive

beyond that and took an Un-carrier

network infrastructure and antennae

approach, like we do with everything

network – and that’s where the bulk of

else. In this case, we focused on three

the green energy we’re acquiring is

key pillars - protecting the planet,

being utilized – to sustainably power

inspiring our customers and employees,

that infrastructure.”

and leading responsibly. Our Un-carrier culture is really rooted in the belief

SUSTAINABILITY IN ACTION

that business success is measured not

So, what exactly does T-Mobile’s

just with financial results, but in our

sustainability strategy look like? “At

commitment to delivering a positive

a high-level, we didn’t just look at

and sustained impact on the economy,

the standard environmental, social,

community and the planet as a whole.”

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DECEMBER 2018

TECHNOLOGY

CLICK TO WATCH : ‘T-MOBILE GOES GREEN: JOHN LEGERE CHALLENGES AT&T AND VERIZON TO CHOOSE RENEWABLE ENERGY’ 93

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PROVEN LEADERS IN RENEWABLE ENERGY Longroad Energy is a renewable energy developer focused on the development and operation of wind, solar and energy storage projects throughout the United States.

LEARN MORE

A KEY STRATEGIC PARTNER T-Mobile selected Longroad as a partner following a competitive process that drew the interest of dozens of renewable energy developers from around the globe. T-Mobile valued Longroad’s wind and solar development expertise, experience working with corporate customers, its in-house operations and asset management capabilities, financial strength and competitively priced clean energy.

energy projects. The core team began developing renewable energy projects together over a decade ago at Longroad’s predecessor company, First Wind. During their time together, the Longroad team has successfully developed 35 utility-scale wind and solar projects across the United States totaling approximately 3,800 MW.

In addition to partnering with T-Mobile, Longroad is actively developing renewable energy projects across the United States.

Longroad has a greenfield development pipeline of over 8,000 MW and recently completed the development of two utility-scale wind and solar projects in Texas. Both projects, which include a 315 MWdc solar project (the largest solar project in Texas), will sell their renewable energy to corporate customers.

The Longroad team is comprised of long-time energy industry veterans with a proven track record of successfully developing renewable

Longroad is an industry leader in operating and managing operating wind, solar and energy storage projects. The Longroad Energy Services (“LES”) team is comprised of experienced Operations & Maintenance and Asset Management professionals. LES staffs a 24x7 Remote Operations Center (“ROC”) to continuously monitor, troubleshoot and proactively oversee the 1,236 MW of operating wind and solar projects currently under LES management. Through its commercial, technical and data-driven approach, LES has helped financial investors and corporate customers achieve their investment objectives.

www.longroadenergy.com

T- M O B I L E

T-Mobile is growing, and Wilkerson and his team are tasked with ensuring that with this expansion the green energy programs keep up with the new power needs. “We frequently evaluate our environmental impacts to determine how we can make significant improvements or offset the impacts of our operations.

We first aim to decrease our carbon footprint through 96

energy efficiency, sourcing renewable energy and utilizing innovative techniques to reduce our greenhouse gases.

The greenest, most economic energy you can get is the energy you don’t use, right? So, that’s a big focus for us.

We aim to mitigate the impacts that our operations have on the environment to help ensure the long-term viability of our communities and our business.”

Of course, by tackling climate change, there is also a vested interest in protecting the T-Mobile supply chain.

“As far as how the environment affects the supply chain... if there’s flooding in an area where our supply base is located, or even in areas where, like us in Texas, our network is located, it affects our operations. If a network or a store can’t open, or an employee can’t get to work, it affects our staff and the communities they live in. So, DECEMBER 2018

TECHNOLOGY

focusing on minimizing our impact on the environment is good for customers, employees and the community alike.”

T-Mobile, a green power partner with the EPA, is expanding its commitment to operating sustainably in partnership with our supply chain. “The suppliers we have the best relationships with are those that echo our values and our thinking – and are focused on implementing new, innovative solutions and structures for the future. With suppliers like Ericsson for example, we can together have a much bigger impact 97

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The Power of Partnership At Enel Green Power, we believe it makes good business sense to match renewables and sustainability goals with underlying corporate values.

Each company has unique requirements, so it’s critical to find a partner who understands your needs, and has the ability to deliver a customized solution.

Enel Green Power has a track record of delivering tailor-made sustainability solutions to our partners world-wide.

Follow us

enelgreenpower.com

R

Sustainable Energy Powers this Partnership Ahead of Earth Day 2017, T-Mobile announced magenta was going green with Enel Green Power (EGP). The Un-carrier made the largest wind power investment ever by a U.S. wireless company, purchasing the clean energy produced by EGP’s Red Dirt Wind Farm in Oklahoma. This partnership will enable T-Mobile to meet its progressive sustainability targets which call for using 100% renewable energy for their entire business by 2021, including the company’s operations across U.S. retail stores, call centers and network operations.

Corporations continue to see the value of supporting renewable energy, and wind power is among the cleanest available sources of renewable energy, according to the EPA. T-Mobile, the only major wireless company to commit to 100% renewable electricity, is recognized by the EPA and Green America for leading the way to #CleanUpWireless. T-Mobile’s sustainable practices don’t end there. From LEED certification and composting at their main campus, to device recycling and paperless billing, they’ve claimed a clear leadership position in environmental stewardship within the wireless industry.

Sustainability runs deep in EGP’s value chain as well, from how we construct our wind farms to the power that our energy facilities produce, we are committed to delivering long-term sustainability for the local communities that we call home. Red Dirt Wind Farm is part of EGP’s sustainable construction program which includes activities like recycling reclaimed materials for community projects, wood-recycling

programs, conducting repair and maintenance on local roads, and investing in critical community operations and initiatives such as local fire departments and community centers.

Enel Green Power North America, part of the Renewable Energies division of the Enel Group, is a leading owner and operator of renewable energy plants in North America with projects operating and under development in 24 U.S. states and two Canadian provinces. EGP operates over 100 plants with a managed capacity exceeding 4.2 GW powered by renewable hydropower, wind, geothermal, and solar energy. In 2017, EGP added more capacity than any company in the U.S. with a record-breaking 1.2 GW and currently in the U.S. and globally, EGP has the second largest amount of contracted capacity with commercial and industrial customers.

We have seen a growing number of enterprises contracting for renewable energy to secure cost savings and provide long-term cost certainty. Our Power Purchase Agreements and partnerships with our customers serve as an industry example of how corporations can leverage renewable energy to reduce costs and operate more efficiently.

When companies like T-Mobile choose to invest in renewable energy through EGP’s projects, they are signaling to the market that sustainability is a core value and essential to remaining competitive in the future.

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TECHNOLOGY

101

both for the planet and the economy!

in northwest Kansas, which is going

T-Mobile is also currently working

to be T-Mobile’s second wind farm.

with Tradewind Energy and Enel

T-Mobile is also working with Puget

Green Power on a number of initia-

Sound Energy to power it’s Bellevue,

tives including one, Red Dirt Wind

WA HQ with 100% green energy that

Farm. “That’s a large project. We’re

is locally sourced through PSE’s

utilizing partners that are in alignment

Green Direct Program.”

with us, and have proven they can

T-Mobile’s sustainability strategy is

deliver results that pave the way for

part of the company’s broader CSR

our future renewable progress. We

program which aims to leverage its

are also working with Engie North

brand, technology and people to posit-

America on Solomon Forks, located in

ively impact the community and planet.

Thomas County, near the city of Colby

“In addition to sustainability T-Mobile w w w.busi ne ssc hief. com

T- MOBIL E C OMPA N Y FA C T S

102

­ evice Recycling Program D In 2017, T-Mobile USA collected over 4 million used cell phones.

Of the over 4 million used devices and accessories we collected in 2017, we reuse or resell a 86% of that hardware—which is by far the most eco-friendly approach.

The rest are responsibly recycled by providers we select. Since we launched our recycling program back in 2008, over 14.4 million T-Mobile customer devices (and counting) have been reused or resold. Because cell phones contain precious metals, recycling not only conserves these materials, but also helps prevent pollution and greenhouse gas emissions.

Renewable Energy Savings T-Mobile utilizes about 2.7 million megawatt hours (MWh) of energy across our headquarters, stores, cell towers, call centers and other locations. To address this energy use, T-Mobile has taken the initiative to enter the renewable energy space. Through our renewable energy use we plan to cut our energy costs by around $100 million dollars in the next 15 years.

Renewable Energy Leader T-Mobile has quickly established itself as the benchmark for the telecommunications industry in renewable energy performance.

In April 2017, we made the largest ever wind power investment to date by a US wireless company, signing a long-term agreement of up to 160MW from the new Red Dirt wind project in Oklahoma.

The project, operational as of January 2018, is expected to provide T-Mobile with over 625 GWh of renewable energy annually, or approximately 27% of our overall power use. Not satisfied to stop there, in January 2018, T-Mobile unveiled a 2nd major wind farm project, an agreement for 160MW with Infinity Renewables' Solomon Forks Wind Project in Kansas. This project, expected to be operational in early 2019, combined with Red Dirt, will generate 320 MWs for T-Mobile or enough to meet an estimated 60% of our total energy needs nationwide.

Growing our Network Efficiency T-Mobile calculates its Co2e emissions in proportion to its transmitted data volume [in TByte]. Data volume is an important indicator for T-Mobile to create a direct link for the performance of its networks. T-Mobile’s data volume transported by its Networks increased significantly for 2017 while its carbon emission intensity figure decreased for that year by 29.3%

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Towards a sustainable future

Integrating sustainability and responsible business practices into our operations is vital to our long-term success.

Our vision is empowering an intelligent, sustainable and connected world through relentlessly innovating technologies that are easy to adopt, use and scale.

Our contribution to climate action

Our product performance

Our company impact

ericsson.com/sustainability Facebook @technologyforgood | Twitter @EricssonSustain

We are committed to the Paris Climate Agreement by joining the Science Based Targets initiative, with the target to

reduce our carbon footprint by

35%

in 2022.

We strive to ensure that the

5G

product portfolio shall be 10x more

energy efficient than current 4G by 2022.

We innovate ICT solutions that have

the power to help reduce global greenhouse emissions by up to

15%.

TECHNOLOGY

has a strong focus on supporting

inclusion and overall ethical business

veterans, youth development, assisting

practices. “T-Mobile is one of Fortune’s

communities impacted by disasters

Best Places to Work for Diversity, and

and enabling our employees to give

one of Forbes Best Employers for

back to their communities and favorite

Diversity, and for five years in a row

non-profit partners. So far, in 2018,

has received a perfect 100 from the

T-Mobile has given more than US$8mn

Human Rights Campaign’s annual

and employees have volunteered over

Equality Index, earning the “Best Place

34,000 hours – and this is all before

to Work for LGBT Employees” for

Giving Tuesday which kicks off the

2017. We also received a top score

busiest giving season of the year.

from the Disability Equality Index for

T-Mobile plans to give up to $2mn for

“Best Places to Work for Disability

Giving Tuesday alone.”

Inclusion” for 2017. And finally, for

T-Mobile has also been recognized for its commitment to diversity and

the past 10 years T-Mobile has been voted Most Ethical Company by the Ethisphere Institute.

“ We frequently evaluate our environmental impacts to determine how we can make significant improvements or offset the impacts of our operations” —

Chad Wilkerson, Director, Sustainability & Infrastructure Sourcing, T-Mobile

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T- M O B I L E

GREEN OPERATIONS T-Mobile has a number of LEED certified facilities including its Bellevue campus which achieved LEED Certification from the US Green Building Council.

T-Mobile just announced a $160mn renovation that – over the next three years – will transform its Northwest headquarters into a modern, inclusive, connected and flexible workplace to better support innovation and collaboration among employees. The new offices will earn a LEED certification with sustainable green building design, 106

construction and ongoing maintenance and operations. In addition, the redesigned HQ will be the first corporate campus in the US to achieve a Fitwel certification, a wellness standard that promotes a comprehensive approach to a healthier workplace through increased physical activity, accessible design, access to healthy food options, natural lighting and outdoor spaces.

Also, the T-Mobile Arena is a LEED Gold certified facility and first LEEDcertified sports and entertainment facility in Las Vegas.

Some of the key initiatives T-Mobile has introduced include waste reduction programs such as paperless billing, DECEMBER 2018

TECHNOLOGY

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TECHNOLOGY

“ We’ve also recycled over 25,000 technology items from our offices… it’s about 300,000 pounds of IT equipment that would have gone to a landfill” —

Chad Wilkerson, Director, Sustainability & Infrastructure Sourcing, T-Mobile minimizing product packaging and increased use of FSC certified recycled and post-consumer materials. “We’re

109

really cutting back on the amount of

ing plastic insert trays, labeling all

paper receipts we’re using in our stores,”

packaging with internationally recog-

Wilkerson explains. “Reducing collateral

nized symbols to encourage recycling,

– like direct mail advertising and customer

and reducing volatile organic com-

billing. We’ve been relying more on

pounds to less than 10%. We’ve also

electronic communications with our

recycled over 25,000 technology items

customers and about 70% of our clients

from our offices including computers,

have signed up for paperless billing.”

servers and monitors. It’s about 300,000

“We work closely with the CTIA

pounds of IT equipment that would

Green Working Group to efficiently and

have gone to a landfill. In addition to

effectively protect the products we sell,

internal electronics and battery recycling,

like phones and accessories, while

we have a consumer device recycling

minimizing the impact, footprint and

program and since we started that,

waste associated with our packaging

we’ve had over 18mm devices reused

as much as possible. The results have

or recycled, and that continues to grow.

been pretty good, and include eliminat-

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T- M O B I L E

DECEMBER 2018

T- MOBIL E C OMPA N Y FA C T S Energy Efficiency on our Network In select markets, T-Mobile removed HVAC equipment from existing telecom shelters at cell sites, and replaced them with a direct air cooling system by installing new cabinet doors designed with variable speed, high efficiency fans to optimize airflow. This investment resulted in decreased energy consumption at the sites and reduced energy costs by 30%.

Setting Ambitious Emissions Targets We have set a number of goals to decrease our carbon footprint, including sourcing 100% of our electricity from renewable energy by 2021. Our goals are driven by our interest in reducing our dependence on fossil fuels, improving the cost and security of our fuel supply and reducing the harmful impacts of greenhouse gas emissions on the planet. With the RCP 2.6 scenario, T-Mobile has committed to reduce combined absolute scope 1 and scope 2 GHG emissions 95% by 2025 from a 2016 base-year. Additionally, T-Mobile also commits to reduce scope 3 GHG emissions by 15% per customer by 2025 from a 2016 base-year.

LED Lighting at Retail Stores ENERGY STAR certified LED Lighting was installed at approximately 1,500 new corporate and dealer stores constructed in 2017.

We also completed additional lighting retrofits across the T-Mobile commercial real estate portfolio. The upgrades were completed in T-Mobile Call Centers, Switch Sites, Regional Business Offices, and its corporate headquarters. We now require all new construction and upgrades to lighting across the company to be LED. Through these upgrades, in 2017, we saved over 5,742,000 KWh of electricity while avoiding the release of nearly 3,000 metric tons of Carbon Dioxide.

LEED Certification of Service Center Partnered with our landlord to achieve LEED Certification from the US Green Building Council at our Field Service Center in Bellevue, WA. The operational changes made to achieve the certification include implementing composting throughout the campus that significantly reduces waste to landfill.

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TECHNOLOGY

our customers to encourage them to recycle and trade in their devices is vital. We have efficient LED lights in the stores and offices, and smart thermostats that significantly reduce energy use as well. We sit down with our partners on the construction team and help them make decisions and design things with sustainability in mind. We’re not just considering what the upfront cost is, but the total long-term costs of ownership when we look at our facilities. Obviously, if you’re able to reduce your energy use to become more efficient, then you’re lowering your operational expenses over the life of that facility and having a better impact on the environment

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at the same time.”

GREEN DATA As a telco, T-Mobile is no stranger to data,

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T-MOBILE COMPANY FACTS Printer Optimization and Paper Reduction Instituted a printer optimization project that has eliminated over 1,000 printers enterprise-wide.

More than 75% of our customers now opt for online billing, which gives us one of the best records in the industry and saves thousands of pounds of waste every year.

The T-Mobile Arena in Las Vegas, Nevada The T-Mobile Arena is a LEED Gold certified facility and the first LEED-certified sports and entertainment facility in Las Vegas.

114

Green Commuting We promote energy-efficient commuting and carpooling by providing location-specific benefits to our employees.

Commitment to Combating Climate Change Beyond our strong partnerships with groups like RE100 and GeSI, we also make our public position known through our aggressive brand marketing. Our CEO, John Legere, has been an outspoken voice on #CleanUpWireless and has issued a $1.5M challenge to AT&T and Verizon to follow suit on our commitment to 100% renewable energy by 2021.

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DECEMBER 2018

TECHNOLOGY

but it’s now utilizing metadata to drive its sustainability strategy. “We believe in the old adage ‘you can’t manage what you can’t measure’.

So, we regularly assess our energy

“ T-Mobile is one of Fortune’s Best Places to Work for Diversity, and one of Forbes’ Best Employers for Diversity” —

Chad Wilkerson, Director, Sustainability & Infrastructure Sourcing, T-Mobile

footprint to track the progress we are making toward our goals and identify

expect that to just keep getting

other areas of opportunity.

better over time! We are well on our

“Obviously, we’re looking at how IoT

way to RE100 and a sustainable

and 5G will impact our sustainability

future for T-Mobile, but there is still

efforts as 5G is the future. However, as

more to do and – we won’t stop!”

our ability to get more and better data increases and we have better information we can more quickly identify where the inefficiencies are and make the changes that will have the biggest impacts. That’s pretty cool and we w w w.busi ne ssc hief. com

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Brown-Forman 118

DECEMBER 2018

119

WRIT TEN BY

L AUR A MULL AN PRODUCED BY

ANDY TURNER

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BROWN-FORMAN

Brown-Forman may be better known for its iconic repertoire of spirits and wines, but the American company is also earning its stripes as a digital trailblazer

F 120

rom Jack Daniels to Woodford Reserve, Old Forester to Canadian Mist, today Brown-Forman’s brands

are a mainstay of any bar or cocktail cabinet.

The American wine and spirits company was founded almost 150 years ago when the founder, George Garvin Brown, created Old Forester, a brand that is often cited as America’s first bottled bourbon – and it seems that this pioneering approach is still present today.

The century-old company is keen to preserve its long-lasting legacy but it isn’t naïve enough to think that the alcohol market will be untouched by the latest wave of digitization.

In fact, Brown-Forman has put its weight behind a root-and-branch digital transformation that hopes to cement its brands as household favourites for years to come.

DECEMBER 2018

“ We look at every employee as a tremendous brand builder” — Tim Nall, Senior Vice President and CIO at Brown-Forman

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Is the most transformative perspective the one you don’t have?

FOOD & DRINK

123 With over 18 years of experience at Brown-Forman under his belt, this job has fallen partly into the capable hands of Tim Nall, Senior Vice President and Chief Information and Data Officer (CIO/CDO). With an acute understanding of the inner workings of the American company, married with a continuous improvement mindset, Nall and his team have ensured that IT no longer plays a back-end function but rather is a key strategic driver of Brown-Forman’s operations. “Brown-Forman used to be a traditional place where IT was viewed as a back-office function,” observes w w w.busi ne ssc hief. com

BROWN-FORMAN

Nall. “But a few years ago, we began to look at what tools Brown-Forman needed to really advance in this data economy. We began to view IT as an enabler and business partner, a function that could provide true solutions not just for the back office but for production teams, sales teams and marketing teams.”

This has been a seismic shift in mindset for Brown-Forman, but it is undoubtedly an essential step for any company wanting to remain at the top of its game in today’s digital economy.

Storytelling and brand building are the 124

backbone of a successful food or beverage brand, and it is a skill which Brown-Forman has honed for decades. “We absolutely believe the consumer is king,” observes Nall.

“Our ultimate goal is for our consumers to understand our product – we want them to make educated choices, we want them to be fans of our brands.” How best to connect with these consumers is a pressing question for any food and beverage business, and Nall believes that technology could be a key part of the solution. “Whether you’re communicating on social media with that consumer, whether you’re creating interactive tools for that consumer, how you’re targeting that consumer – it all requires technology,” he explains.

DECEMBER 2018

CLICK TO WATCH : ‘WHO IS BROWN-FORMAN?’ 125 Over the past few years, the Jack Daniels maker has implemented a slew of technologies to become a more digitally savvy firm.

These include everything from cloud-based productivity and collaboration tools to a modern data stack. “First, we realized our existing data stack was not adequate enough for us to really gather, harmonize and interrogate our information. We knew we had to modernize, so we started looking for a modern data ingestion platform that our employees could leverage and we settled on Talend as our partner working with the Talend Data Fabric,” explains Nall.

“We knew we also wanted a modern, robust w w w.busi ne ssc hief. com

BROWN-FORMAN

“ We want our consumers to know the stories behind Brown-Forman. We want them to engage with us so that we can tell them about Old Forester, the first bottled bourbon. We want them to understand our recipes so that they can create the perfect Manhattan” — Tim Nall, Senior Vice President and CIO at Brown-Forman

126

DECEMBER 2018

warehouse for all this information to go into so we chose to work with Cloudera. Then we asked ourselves how our employees and our partners would really interrogate and examine the information that we give them. We wanted to ensure that we had modern toolsets out there as well, so we looked at different products and settled on Tableau as our visualization platform and RStudio as our analytical, statistical modeling platform.” Through these cutting-edge technologies, BrownForman has sought to democratize

127

data and its analytics so that employees from all departments can utilize this for their own ad hoc analyses every day.

Gaining the data is only the beginning. For this tool to really earn its stripes, Nall points out that you need to gain true insight and analysis of the figures. “We’re always cautious to say that, in a way, the data isn’t doing anything,” he explains. “It’s the insights we’re gleaning from the information that are important.

Data without analysis is wasted money. We’ve transformed how we look at the information; it’s w w w.busi ne ssc hief. com

BROWN-FORMAN

surfacing new ideas that are really driving positive action within the company.”

At Brown-Forman, data has been the bread and butter of the company’s digital transformation and it’s helping to deliver insights that drive tangible, real-life results, such as more informed pricing decisions. “It’s helped us see how our competitors are moving with regards to their price and how that affects us.

Over the past few months, we’ve been rolling out a revenue management application globally that’s been well received,” explains Nall. Data analysis 128

$3.25bn Approximate revenue

1870

Year founded

4,600

Approximate number of employees

has touched every corner of the American company, including the heart of its operations: its production division.

“We worked closely with the production organization and we saw that there

well known for its captivating market-

were issues that data analytics could

ing efforts but the company has taken

help resolve. Using data, we’ve taken

this one step further with its use of

a hard look at our barrel yield to see

data technology “We’ve engaged

what issues could be affecting it.

with partners like Salesforce to help us

Leveraging a lot of internal information

provide modern toolsets, and we’ve

and even external information like the

also looked at exact target marketing

temperature and other variables, we’ve

and consumer journeys so we can

provided dashboards that are really

better communicate with our customers

helping our production partners better

and deliver a better experience,” says

manage and forecast barrel yield.”

Nall. The wine and spirits firm has also

With its quintessential southern

made its first foray into chatbots and

American charm, Brown-Forman is

has used SMS text engagement at its

DECEMBER 2018

FOOD & DRINK

129

distillery tours. Additionally, as a sponsor

employees but are also viewed as

of the Kentucky Derby, Brown-Forman

brand ambassadors. “We look at every

says it can use a balance of marketing

employee as a tremendous brand

and data analytics to track whether

builder,” observes Nall. “We want our

event promotions have been effective

consumers to know the stories behind

and to forecast the success of its

Brown-Forman. We want them to

future campaigns. This, in turn, helps

engage with us so that we can tell them

marketing dollars go further and

about Old Forester, the first bottled

increases brand awareness.

bourbon. We want them to understand

The biggest tool for marketing, though,

our recipes so that they can create the

is undoubtedly Brown-Forman’s team.

perfect Manhattan. I think that’s the

With a 4,600-strong workforce world-

real benefit for the consumer: they get

wide, teams are not only seen as

this information and it’s digestible. w w w.busi ne ssc hief. com

BROWN-FORMAN

We view data and analytics as playing a significant role in our future successes.”

Over the past decade, technology has undoubtedly revolutionized the customer experience. With a few swipes and taps of our devices, we can get the goods and services we want when we want them.

Today’s consumers expect their experience to be seamless and indeed today’s workforces are no different.

“Just like we want to understand the expectations of our consumers, we also want to understand the expectations 130

our employees,” Nall adds. “Our employees expect a consumer-like experience.” Making working life simpler for staff in over 160 countries is not an easy feat, but by leveraging trailblazing technologies and processes Brown-Forman is hoping to bridge geographical gaps and bring its teams closer together.

“Whether it’s regarding their paycheques, their communications or their training, we want to make sure that it’s delivered seamlessly and that our employees have a great DECEMBER 2018

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BROWN-FORMAN

132

experience with it. We want to make sure

borders and time zones,” says Nall. As

that all our 160 countries are connected.

a Salesforce customer, Brown-Forman

You could do that by hopping on aero-

has not only adopted the firm’s customer

planes but that can be very costly and

relationship management (CRM) tool

so we are leveraging modern technology

globally, but is also using its Chatter tool

to help connect our team.”

that allows employees to keep in touch.

Pushing for better communication,

“Our employees are used to tweeting

Brown-Forman quickly got on board

and using instant messaging apps in

with cloud technology like Google’s G

their personal life so Chatter gives that

Suite platform and Cisco’s Webex tool.

to them professionally,” he adds. “It really

“We believe these tools help eliminate

allows all of these employees just to

DECEMBER 2018

133

“ We definitely believe that technology isn’t a solution, but it’s an enabler for change” — Tim Nall, Senior Vice President and CIO at Brown-Forman

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BROWN-FORMAN

“ Data without analysis is wasted money” — Tim Nall, Senior Vice President and CIO at Brown-Forman

134

DECEMBER 2018

stay connected despite the time zones.”

As more and more technologies come to the fore, it seems it’s an exciting time to be in the alcoholic beverage space.

However, Nall is keen to point out the saying ‘if you have a hammer, everything looks like a nail’ – that is, if a business relies too heavily on particular tools it may miss out on the perfect solution or idea. Instead, he suggests: “When we think about digital we always think about our stakeholders, our employees and our consumers. We definitely believe that technology isn’t a solution, but it is an enabler for change.”

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135

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DECEMBER 2018

M A N U FA C T U R I N G

perational excellence in the digital factory WRIT TEN BY

DA LE BENTON PRODUCED BY

TOM VENTURO

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137

AEROJET ROCKETDYNE

With an advanced manufacturing facility, providing the digital factory of the future, Aerospace Rocketdyne demonstrates operational excellence or over 70 years, Aerojet

and the industry has changed a lot

Rocketdyne has delivered

in the past decade,” he says. “With

innovative solutions to

Aerojet Rocketdyne today, I am

aerospace and defense market

managing a group of outsourcing

customers all over the world. The

partners that provide IT services to

company provides propulsion and

our company. I look at strategy and

energetics technologies to space,

technology development and then

missile defence, strategic, tactical

work out how we bring those

missile and armaments customers,

technologies to the operation side

and lives and dies by a simple

of things so that we can start

mission: to build a ‘brighter future

implementing those enhancements

for the next generations… who look

while adding business value to our

to new frontiers and advances in

internal customers.”

F 138

global technologies’.

As technology continues to

Working with customers across a market as delicate and important

disrupt and redefine industries and

as the defence and aerospace

markets all over the world, such

industries, where information and

a leading company as US-based

data are key, there is one conversa-

Aerojet Rocketdyne must evolve in

tion surrounding technology that

a changing landscape. This is

continues to grow even today.

something Chief Technology Officer

“There’s definitely a major focus

(CTO) Alan Avakian understands.

on cybersecurity, given the number

“Technology continues to leapfrog

of high-level security breaches that

DECEMBER 2018

M A N U FA C T U R I N G

139

“ WHAT DOES ‘DONE’ LOOK LIKE IN OUR WORLD? WE ARE CONSTANTLY FIGURING OUT HOW WE GET THERE, WHILE BEING ABLE TO MEASURE OURSELVES ACROSS THAT JOURNEY” — Alan Avakian, Chief Technology Officer (CTO) at Aerojet Rocketdyne

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AEROJET ROCKETDYNE

have happened over recent years

learning as well as robotic process

across the globe,” says Avakian. “Right

automation (RPA) which helps

now, it’s all about how we protect our

companies like Aerojet Rocketdyne

company assets and information, and

develop new opportunities and new

make sure it is maintained for competi-

markets that previously did not exist.

tive advantages. Then we look at how

Avakian points to Uber as an example.

we enable those critical business

“Nobody dreamed up Uber ten years

capabilities where we can focus in on

ago but here it is today and it’s a

digitisation, retire high-risk legacy

multi-billion-dollar company,” he says.

systems and look towards creating

“That’s what AI and robotic machine

intelligence out of that information.”

learning are providing us with: they’re

This, he feels, is where we see an industry-wide turn towards robotics, artificial intelligence (AI) and machine

creating new markets for companies that don’t even exist yet.”

The challenge, then, as Aerojet

140

“ WE’RE AT A VERY PIVOTAL POINT WITHIN THE WORLD RIGHT NOW WHERE THE ENVIRONMENT IS CHANGING RAPIDLY. IT’S DIFFERENT FROM WHAT IT WAS IN YEARS PAST AND INFORMATION APPEARS TO BE KING. SO, IT’S HOW DO WE USE THAT INFORMATION TO OUR ADVANTAGE AND CAPITALIZE ON IT GOING FORWARD?” — Alan Avakian, Chief Technology Officer (CTO) at Aerojet Rocketdyne

DECEMBER 2018

M A N U FA C T U R I N G

CLICK TO WATCH : ‘FUEL FOR THOUGHT – S1 E3 MARS INSIGHT’ 141 Rocketdyne moves into new markets

country, the challenge is accelerated.

and explores new opportunities

“Our customers are looking for that

through technology and innovation,

innovative solution that provides those

becomes one of catering to new and

technologies or competitive edges,

evolving customers. The customer of

but does so from an affordable

today requires cost-effectiveness

perspective where increased competi-

without compromising on quality.

tion is encouraged to get the best

Avakian recognises that the company

value proposition,” he says.

must be able to provide its market lead-

“So whenever I’m thinking of those

ing best practices, all the while doing

new things that are innovative and

so in a cost-effective way and main-

cutting edge, I’m always thinking about

taining a competitive advantage. When

how we can implement them in such

working with NASA to put satellites

a way that it is secure and meets our

into orbit and providing missiles and

customers’ requirements as well as

defence systems to protect the

enabling the business so that we can w w w.busi ne ssc hief. com

AEROJET ROCKETDYNE

start accelerating things. It’s about getting to a point where we’re innovating and being able to provide IT using a services model versus building it in as an on-premise solution.”

As a testament to this understanding, Aerojet Rocketdyne has invested in the construction of an Advanced Manufacturing Facility in Huntsville, Alabama. This new facility represents complete technology enablement through the use of information, since Aerojet Rocketdyne prototyped a number of digital factory initiatives that utilise IT through automation, robotics and even 3-D printing equipment. “This facility and the innovation

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M A N U FA C T U R I N G

we are fostering there provides us with a competitive edge,” says Avakian. “We’re taking it to the next level where we implement more automation as it provides us with more information and creates markets that we didn’t have before.”

“IT brings it all together: our manufacturing execution system, our product lifecycle management system, our ERP system and our business intelligence systems all working together to bring information to our fingertips.

We can then start making better decisions based on that information.”

143

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AEROJET ROCKETDYNE

Building and operating an Advanced Manufacturing Facility places Aerojet Rocketdyne at the cutting-edge of technology and innovation, but, as noted above, modern customers demand a combination of innovation and cost-effectiveness. To this end, as Aerojet Rocketdyne moves into new markets and develops new technologies, it must continuously assess its own capabilities to do so. One such way in which the company is doing this is through its Competitive Improvement Program. The goal of this program is a simple one: to ensure that its products are more affordable across the enterprise and 144

bring that value back to its customers.

The Advanced Manufacturing Facility is but one part of this program as Aerojet Rocketdyne chose to consolidate its footprint; the next step is rationalisation across the entire enterprise. “It’s about our product affordability going back to our customers,” says Avakian, “and along with that we’re also reducing our administrative and overhead costs. In order to bring value back to our customers, it’s about making sure we’re using everything that we can from an efficiency and effectiveness perspective.”

A Continuous Improvement Program is all well and good, but much like the information provided through automation and machine learning, Aerojet Rocketdyne must extract DECEMBER 2018

M A N U FA C T U R I N G

145

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AEROJET ROCKETDYNE

the value from this information in order to ensure that it is achieving what it set out to achieve. To this end, Aerojet Rocketdyne uses service level agreements, metrics, key performance indicators (KPIs) and critical performance indicators (CPIs) as a means of measuring the company against its strategy and architecture. “What does ‘done’ look like in our world? We are constantly figuring out how we get there and measuring ourselves across that journey,” says Avakian.

“Using data to get there is very much 146

ingrained in our company so that we can ensure we’re making objective, quantifiable measurements to be able to evaluate if we did realise what we were trying to achieve in the beginning.”

In the technology space, the

nies are able to “spin up environments

measurement of success is crucial

and applications with the snap of a finger

both internally and externally and with

and a click of a mouse.”

technology and innovation evolving at

“Now we can bring technology to our

an increasing rate, communication

customers more quickly,” he explains.

proves key. Avakian is a firm believer

“They can touch it and feel it and that

in proof of concepts and providing real,

provides them with the confidence that

tangible examples of the returns on

we can invest in it and provide that to

investment (ROIs) that technology can

the masses,” he says. “That’s how

bring. He feels that in today’s digital

I think it’s changed the value proposi-

age, this is more vital than ever since

tion while being able to get something

software as a service (SaaS) compa-

to market so much more quickly than

DECEMBER 2018

M A N U FA C T U R I N G

we could in the past.�

scape, it shows no sign of slowing

Aerojet Rocketdyne has been a market

down. Through sound investment in

leading innovator for more than 70 years

its Advanced Manufacturing Facility

and as technology has continued to

as well as its Continuous Improvement

define and redefine the market land-

Program, the company has readied

E X E C U T I V E P R OF IL E

Alan Avakian Alan Avakian is the Chief Technology Officer of Aerojet Rocketdyne. In this role, he leads the organisation’s Technology Management function responsible for shared business service strategy and operations including Networking, Infrastructure, Applications, and End User Support services. He coordinates with line-of-business leaders to understand their needs (including anticipated technology and product changes) and works with IT outsourcing partners for execution.

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AEROJET ROCKETDYNE

“ WHAT IT DOES, IS BRING ALL THE DATA TOGETHER WHERE OUR MANUFACTURING EXECUTION SYSTEM, OUR PRODUCT LIFECYCLE MANAGEMENT SYSTEM, OUR ERP SYSTEM, AND OUR BUSINESS INTELLIGENCE SYSTEMS ALL WORK TOGETHER TO BRING THAT INFORMATION TO OUR FINGERTIPS SO WE CAN START MAKING BETTER DECISIONS” — Alan Avakian, Chief Technology Officer (CTO) at Aerojet Rocketdyne

148

CLICK TO WATCH : ‘WITHOUT LIMITS’

DECEMBER 2018

M A N U FA C T U R I N G

itself to cement its market leading position as it embraces the future of technology and innovation. Avakian recognises this and points to information as being the true enabler of technology, both today and tomorrow.

“We’re at a very pivotal point within the world right now where the environment is changing rapidly. It’s different from what it was in years past and information appears to be king – so it’s about how we use that information to our advantage and capitalize on it going forward,” he says.

“Staying in front of it will provide you with the ability to enable competitive advantages and things of that nature, as we successfully continue to do here at Aerojet Rocketdyne. We must share that information to be able to collaborate and get to these new things that weren’t even possible before.”

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149

150

Achieving and sustaining success in the midst of a digital transformation journey WRIT TEN BY

SE AN GA LE A-PACE PRODUCED BY

TOM VENTURO

TECHNOLOGY

151

COLLABERA

Atul Kumar, Global Chief Information Officer at Collabera, discusses how his company is embracing technology in the midst of the firm’s digital transformation journey

C

ompanies of all sizes are beginning to embrace technology in order to establish and maintain success. With

the aim of becoming more digitally advanced, Collabera is in the middle of a four-year digital transformation journey. Having been a leader 152

in IT staffing for over 25 years, the organization provides companies with comprehensive IT and professional staffing and services to help businesses achieve their goals.

Atul Kumar, Global Chief Information Officer (CIO) at Collabera, believes his company’s digital journey has come a long way since beginning its transformation two years ago.

“We have made significant progress in the last two years and I feel I helped accelerate this when I first joined the company,” he explains, reflecting back to September 2017 when he took the role. “We targeted the most impactful areas of the organization and looked for the opportunity to transform our business through digital technology.”

DECEMBER 2018

TECHNOLOGY

153

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TECHNOLOGY

“ It’s important to us that we ensure we have state of the art innovative applications which leverages the power of artificial intelligence,predictive analytics and smart automation to make recruiters smarter and efficient” — Atul Kumar, Global CIO, Collabera

155 In joining the company, Kumar was

80% of that is done. However, that

tasked with driving the firm forward

required a lot of change in our organi-

and created a digital transformation

zation and people don’t have much

roadmap to outline his targets. “Through

patience when things aren’t right.

my digital transformation roadmap,

Everyone wants to see a positive

I established the areas where I felt we

outcome immediately.”

could achieve the most impact. We started with three key goals: increase

EMBRACING NEW TECHNOLOGY

the revenue, improve the margin and

In order to obtain support and confi-

provide world class experience to its

dence before the beginning of Colla-

customers, candidates and employ-

bera’s transformation journey, Kumar

ees,” explains Kumar. “As a result of

delivered ‘quick wins’ in a bid to give his

that, I picked up all the big-ticket items

company confidence. Now, by intro-

for 2018 as well as some for 2019, and

ducing innovative business solutions,

I’m pleased to announce that at least

Collabera has geared to achieve w w w.busi ne ssc hief. com

COLLABERA

profitable growth and digitalization

for employees, and integrated a service

is making it easier for the company to

desk chatbot,” explains Kumar. “We

improve customer experience, increase

have to fulfil the client’s requirements

efficiency and engage candidates in

faster and find the right candidate at

much more meaningful way.

all times. It’s important to us that we

“We rolled out an expense manage-

ensure we have state of the art innovative

ment mobile app, automated our

applications which leverages the power

candidate screening process through

of artificial intelligence, predictive

AI-based parsing and matching tools,

analytics and smart automation to make

launched a new intranet which was

recruiters smarter and efficient. We are

a personalized integrated workspace

continuing to look for opportunities about

156

DECEMBER 2018

TECHNOLOGY

how we can provide that world class

substantial growth. For example, auto-

customer experience to our clients by

mated candidate outreach business

offering them quality candidates at

Glider.AI has proved an invaluable partner

a faster rate than our competition.”

to Collabera. “Glider.AI provided the most

By connecting talented professionals

advanced technical assessment and

to innovative companies, Collabera has

video interview platform which was

looked to form partnerships to help

integrated seamlessly into our system.

implement the new technology for

The platform helps internal recruiters

sustained success. Kumar affirms that

and hiring managers to quickly and easily

the collaboration of Collabera and its

discover great talent with demonstrat-

partners has been key to achieving

ed competency and engagement. This

E X E C U T I V E P R OF IL E

157

Atul Kumar Atul is an accomplished IT leader with 21+ years of international and domestic experience in strategic planning, large scale IT transformations, business development and business operations gained through progressively more technological roles. He has successfully built and managed large diverse, cross functional high energy teams and has influenced positive outcomes in difficult situations through his collaborative leadership style. He has worked with clients in a wide variety of industries including Consumer Goods, Retail, Manufacturing, Logistics, Banking & Financial Services, High-Tech and Automobile Industries solving business problems by designing and structuring solutions for clients by involving business consulting and technology services.

Currently, he is responsible for driving digital transformation initiatives at Collabera through new technology adoption and improving the customer experience across the organization.

w w w.busi ne ssc hief. com

COLLABERA

has resulted in an increase in the quality of submissions by candidates to our clients and closing more positions successfully,” says Kumar. “Meanwhile, Sysfore Technologies provided the architectural consultancy services and API economy principles for the application. This helped us to integrate some of the functionalities of this application into other applications very quickly and easily.”

The company has also teamed up with cloud-based a cloud-based knowledge automation, collaboration and communication platform from 158

Witty Parrot to help develop an AI-based digital assistant for Collabera’s sales team to be effective on the go.

TRANSFORMING THE ROLE OF A CIO With technology constantly evolving, the role of CIO has developed in order to keep up with the latest trends. Kumar believes a CIO’s job description has undergone a major transformation following the introduction of new technologies and innovations in the last decade.

“I believe the position of a CIO has changed significantly who is now expected to be business technology leader with domain expertise. In the past, their most important skill was technology know-how DECEMBER 2018

“ Glider.AI provided the most advanced technical assessment and video interview platform which was integrated seamlessly into our system” — Atul Kumar, Global CIO, Collabera

TECHNOLOGY

CLICK TO WATCH : ‘COLLABERA ­— FIND A JOB YOU LOVE’ 159 and deliver what business wants, primarily an order-taker kind of a role. You were just enabling the organization by automating some of the processes,” says Kumar.

“Over the last 10 years, it has taken more of a front row seat in the organization and has begun to contribute to corporate strategy. Five years ago, people used to say, ‘technology has become the enabler’ – but in 2018, technology has become the driver for business. Now, the CIO role is to successfully formulate business solutions, create global capabilities, develop new revenue opportunities and foster innovation within their companies.” w w w.busi ne ssc hief. com

COLLABERA

MAINTAINING SUCCESS For the last seven years, Collabera has consistently won the award of ‘Best Staffing Firm to Work For’ in the large firm category by Staffing Industry Analysts. “Now we want to be called most digitally advanced world’s leading staffing company which is taking

60+

Offices worldwide

15,000+ Pros worldwide

advantage of emerging technologies to make the company more efficient and drive revenue,” explains Kumar.

He believes Collabera’s biggest achievement has been to increase 160

24/7

Staffing support

recruitment productivity through technology. “We have Fortune 500 clients and small clients, too. We get requirements from them and then match to the millions of candidates in our database. It then becomes our responsibility to submit their resumes and the client interviews, screens and finally selects them,” explains Kumar.

“Through increasing the recruitment productivity and reducing the time and cost of filling the clients’ requirement, it has meant that the quality of candidate submission, as well as candidate experience, has been enhanced – and our Glassdoor rating has risen too.”

DECEMBER 2018

TECHNOLOGY

161

Looking to the future, Kumar affirms

digital first mindset,” says Kumar. “The

that Collabera can continue to grow as

moment we begin to think we have

long as the company remembers its

arrived; our growth will stop. The only

core principles but remains primed to

constant is change and we have to live

adapt to the latest trends. “It’s vital that

with that. I think we’ll continue to grow

we continue to achieve what we have

as long as we adapt to change and

done in the same fashion as long as we

embrace new technology.”

remain focused on providing a great service to our client and candidate. We must continue to embrace the technology revolution and improve our processes and business models with w w w.busi ne ssc hief. com

162

HOW MICROSOFT IS TRANSFORMING CANADA’S HEALTHCARE It is no exaggeration to say that Microsoft has changed the world, as it has transformed nearly every part of people’s working and home lives – after all, around a fifth of the world’s population use Microsoft products on a daily basis. Next, the IT giant is set to revolutionise healthcare.

WRIT TEN BY

LEIL A HAWKINS PRODUCED BY

ANDY TURNER

163

MICROSOFT CANADA

I

t is no exaggeration to say that Microsoft has changed the world, as it has transformed nearly every part of people’s working and home lives

– after all, around a fifth of the world’s population uses Microsoft products on a daily basis. Next, the IT giant is set to revolutionize healthcare.

The healthcare system faces some tough challenges.

Wait times are lengthy, whether in the emergency room, referral to a specialist, or making appointments to see a doctor, and processes can generally be slow-moving.

Meanwhile healthcare IT has traditionally been focused on hospital-based Electronic Health Records (EHR), but part of Microsoft’s digital vision is to move 164

beyond this and onto more efficient processes. Peter Jones, Microsoft’s Industry Lead in Healthcare for Canada, explains: “Traditionally we’ve spent a lot of money and resources on digitizing healthcare records. We are now focused more on systems of insight that will enable us to access data and make better decisions on patient care and the operations in the hospital.”

As well as shifting from systems of record to systems of insight, Jones explains they are moving towards systems of engagement, making it possible for patients to interact with healthcare providers in new ways.

Patient engagement is one of the four pillars of Microsoft’s model to transform the country’s healthcare system, alongside empowering care teams, optimizing operations and transforming the continuum for better patient care.

DECEMBER 2018

TECHNOLOGY

165

MICROSOFT CANADA

166

PATIENT ENGAGEMENT

with telemedicine specialists Novari

Now that it’s possible to book

Health, makes it possible for patients

everything from a taxi to a grocery

to schedule virtual consultations with

shop via a touchscreen, it makes

doctors. It’s as simple as clicking on

sense for patients to want healthcare

a meeting request in an email to carry

to be just as accessible.

out a virtual appointment from the

New technology that enables care

comfort of the patients’ home. “You

teams to monitor patients remotely is

can get access to a member of your

of huge benefit to people with chronic

care team including doctors and

conditions, as it cuts down on wait

nurses,” Jones explains.

times for appointments, and means those with limited mobility, such as the

EMPOWERING CARE TEAMS

elderly, don’t need assistance with

There are better ways to help clinicians

travelling to appointments.

communicate, collaborate, team

The eVisit, developed in conjunction DECEMBER 2018

and learn. The Office 365 platform

TECHNOLOGY

“ W E ARE NOW FOCUSED MORE ON SYSTEMS OF INSIGHT THAT WILL ENABLE US TO ACCESS DATA AND MAKE BETTER DECISIONS ON PATIENT CARE AND THE OPERATIONS IN THE HOSPITAL” — Peter Jones, Microsoft’s Industry Lead in Healthcare for Canada

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167

Optimize Healthcare Facility Performance

PetalMD has created a unique Web platform that reduces operating costs and improves patient satisfaction. Designed for hospital managers and physicians, it allows you to: Hospital Dashboard

Analytics Dashboard

Consolidate schedules and on-call lists, updated in real-time.

Visualize and monitor hospital performance.

Physician Schedule Management

Artificial Intelligence

Automate physician schedule management and simplify shift exchanges.

Optimize time and resource allocation through the use of powerful algorithms.

Patient Booking

Secure Messaging

Synchronize appointment booking channels and facilitate patient access to healthcare.

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Adopted by 150 hospitals

TECHNOLOGY

allows members of the care team

OPTIMIZING OPERATIONS

to communicate and collaborate on

Health is data rich and information

better patient care.

poor. Jones goes on to say that the

“If you look at how we’re moving

data collected in clinical systems is

beyond EHR, one of the biggest

generally for operational, comm-

challenges has been communication

unication or medical purposes, most

amongst care teams” Jones says.

systems do not store communications

“Many care team members are over-

in a way that makes analytics easy,

worked and struggling to produce

and an enterprise-wide system view

but putting the communication and

doesn’t emerge organically. “For an

collaboration tools in place has allowed

industry that prides itself on being

them to become more efficient and

evidence-based, health does a poor

more effective in their job.” A good

job at using the most recent and rel-

example of this is a solution from

evant evidence, their own data.

a partner called PetalMD. It offers a cloud-based solution

“We see analytics as a continuum spanning retrospective reporting,

to help physicians create, manage

real-time dashboarding, predictive

and collaborate on scheduling

analytics, and even prescriptive

shifts with co-workers. It helps

decision-making using cognitive

saves time, allows remote access

services and machine learning. Even

to schedules, provide tasks and

relatively basic initiatives like patient

transfers all in one platform on Azure,

journey-boards and KPI dashboards

dramatically reducing errors and

can have a huge impact on baselining

prevent outdated information or

performance, identifying bottlenecks

duplicates. All information, such as

and streamlining operations.

schedule events or even a physi-

“We see that effective use of data

cian’s phone number, are instantane-

analytics as the only proper way of

ously updated. Members can easily

achieving population health, whether

communicate through a secure

it’s management of chronic disease to

messaging channel.

prevent unnecessary re-admissions, w w w. b u s i n e s s c h i e f. c o m

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MICROSOFT CANADA

or supporting patients to manage their care plan, timely and accurate information is key.

“We’re seeing a lot of our partners build cloud-based solutions that are addressing these challenges and are easily adopted” he adds. One of these partners is Oculys, who have been able to show significant savings for hospitals by using data analytics to predict emergency room wait times and monitor patient flow and bad management. “If you can track it you can manage 170

it more effectively” Jones says.

TRANSFORMING THE CONTINUUM Some of the most exciting models of

is another motivator that is becoming

care leverage cloud computing. This is

increasingly apparent – some capabili-

currently the primary focus for Microsoft.

ties are only possible in the cloud.

Once viewed with scepticism by the

“The cloud is essentially a global super-

health industry due to perceived security

computer, that you can access on

or control limitations, the cloud is now

demand and pay only for what you use.

undeniably being embraced by health

You get all the benefits, yet the cost

organizations around the world. Gartner

is spread across all the users. Kind of

predicts that within this decade organi-

like timeshare.”

zations will be going to the cloud

The virtually unlimited storage pool

precisely because it is more secure

makes medical imaging storage cost

than the on premises counterpart. Part

effective, or any other big data scenario

of this momentum is driven by cost

for that matter. The incredible process-

efficiencies and outsourcing, but there

ing power makes genomic sequencing

DECEMBER 2018

TECHNOLOGY

feasible. Machine learning and artificial intelligence are most practical in the cloud. Aggregations of software as a service provider, like an enterprise app store, allow organizations to discover, trial and deploy new applications with a minimum of risk and hassle. There is potential of the cloud to defragment all the data silos that frustrate holistic health information management.

Making cloud computing trustworthy is a key priority. Part of that involves making sure it is secure, and Microsoft invests over a billion dollars annually to that end. Just as important though is making sure that the cloud can be used

“ STORAGE COSTS FOR CLOUD COMPUTING ARE THE LOWEST WE CAN SEE” — Peter Jones, Microsoft’s Industry Lead in Healthcare for Canada

compliantly, so Microsoft has invested in many industry certifications like HIPAA through a Business Associates Agreement, HITECH, and FedRAMP. Keeping information private, being transparent about datacentre operations, and allowing users the controls to manage their own data round out the trust story.

LOOKING AHEAD The seemingly limitless capacity of the cloud is advantageous for initiatives such as genomic sequencing, a field w w w. b u s i n e s s c h i e f. c o m

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MICROSOFT CANADA

“ T HE CLOUD IS ESSENTIALLY A GLOBAL SUPERCOMPUTER, THAT YOU CAN ACCESS ON DEMAND AND PAY ONLY FOR WHAT YOU USE” — Peter Jones, Microsoft’s Industry Lead in Healthcare for Canada 172

that is greatly expanding, and one that

are the lowest we can see, and the

includes researchers investigating

number of genomes we will need to

causes and early detection of serious

sequence in the future is going to put

conditions such as cancer. It is an area

a huge demand on a lot of the infra-

Microsoft is doing a significant amount

structure that exists on premise today”

of work in, and one that requires

Jones explains. “The other benefit is

a tremendous amount of storage given

allowing researchers to share their

that a single human genome takes up

data. The larger the genomic data set

at least 100 gigabytes of space.

the better the research, so we’re

“Storage costs for cloud computing DECEMBER 2018

starting to see researchers coming

TECHNOLOGY

173

together with genomic data sharing

with providers generally waiting for

platforms that allow them to get

others to adopt new processes before

access to larger data sets.�

making the move themselves. However,

One of the organizations that has

with these innovations in telemedicine,

moved its genomic data to the cloud is

cloud solutions and operational data,

BC Cancer, a government-run agency

more and more are joining the digital

that conducts research and operates

revolution to reap its benefits.

patient treatment centers.

The healthcare industry has historically been risk averse, as Jones says, w w w. b u s i n e s s c h i e f. c o m

Revolutionizing the healthcare sector with digital disruption

174

WRIT TEN BY

L AUR A MULL AN PRODUCED BY

ANDY TURNER

DECEMBER 2018

CANADA

175

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P E TA L M D

In the healthcare sector, every minute in invaluable.

Offering innovative web solutions for healthcare professionals, PetalMD is helping physicians save valuable time so they can save lives

I

ncredible advancements have continued to disrupt the healthcare sector but, behind the scenes, a lot of administrative work is still done

with the faithful pen and paper. In a sector where time is 176

of the essence, this has created a mammoth hurdle but it is one which Patrice Gilbert hoped to overcome when he founded PetalMD. The idea came to him when he talked to doctors and nurses about their daily grind in the healthcare sector.

“I was shocked by their use of technology,” he recalls.

“I realized that there was a real lack of technology penetration. In the beginning, I really saw how that, when it came to administrative tasks like scheduling, people were making decisions not based on data but subjective matters and I knew something had to change.”

One of the largest drains on time that Gilbert identified was the creation of on-call schedules. Puzzling over Excel sheets and trying to juggle conflicting time constraints of physicians means that creating schedules can cost valuable hours of time — time that could be spent saving lives. By digitizing the entire process, the DECEMBER 2018

CANADA

177

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P E TA L M D

PetalMD cloud platform aims to solve

Combined with its Petal On-Call

this. Comprised of Petal Booking, Petal

module, Gilbert says that physicians

Scheduling and Petal On-Call, this in-

also have access to a hospital dash-

novative platform hopes to facilitate

board, a clever tool that gives staff

patient appointment booking, optimize

easy access to the hospital’s on-call

physician schedule management

list in real-time, on any device. “This

and secure information exchange.

makes sure that all the staff at the

“The first module is physician sched-

178

hospital know who is on–call as well

uling: it allows a group of physicians to

as the physician’s schedule for the

better manage their group schedules,”

clinic. It saves faxes and emails back

explains Gilbert. “The platform allows

and forth and it can improve hospital

physicians to create, manage and share

productivity by making sure that

their schedules more easily in real–time.

everybody who needs to access this

It seems obvious that a group of physi-

information can do so in real–time,”

cians would have this technology today,

he notes.

but most of the time, when we deploy PetalMD we replace pen and paper.”

With its third and final module, Petal Booking, the platform also offers rich

E X E C U T I V E P R OF IL E

Patrice Gilbert Founder and CEO at PetalMD, Patrice Gilbert began his career as a product engineer at Thales Canada and Domosys. His natural leadership and vision led him to a position as Team Leader in Product Development at Taleo, where he moved up the ranks to become Product Manager for Eastern Europe in Germany. In 2009, he returned to Quebec and founded PetalMD, which earned him the title of Young Business Person of the Year for Technology and Research in 2010. Today, his passion for product development drives him towards finding new and innovative technological solutions for healthcare professionals.

DECEMBER 2018

CANADA

“ Comprised of Petal Booking, Petal Scheduling and Petal On–Call, this innovative platform hopes to facilitate patient appointment booking, optimize physician schedule management and secure information exchange” — Patrice Gilbert, Co-founder and CEO of PetalMD

insights into when the hospital is likely to be busiest or less in–demand. “There is no way a hospital can align their medical offering and their investment in equipment if they are not aware of their patient demands,” Gilbert explains. Using the Petal Booking platform, hospitals can automate tasks that are currently done manually like booking appointments or providing further information and reminders. This is then taken one step further thanks to artificial intelligence and data. “We help hospitals and their staff to better understand patient demands and, by using artificial intelligence, we can then forecast future patient demands, such as periods that w w w.he a l t hc a re gl o b a l. com

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P E TA L M D

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‘The physician tool provider has close ties with Microsoft — its cloud-based platform is deployed on Microsoft Azure — and this has given PetalMD the global expertise and knowledge needed to become a global operation’ DECEMBER 2018

CANADA

are likely to be busier,” he adds. “It enables physicians to plan their next schedule ahead of time. It’s the holy grail for hospitals because they are able to make decisions based not on thoughts, or subjective matters, but on real data.”

The result? More time saved, a better work-life balance, and ultimately better patient care. For physicians, it’s been an invaluable tool. “Many of the hospitals we work with, they initially reach out, because that want to improve the personal life and working life balance for their physicians,” observes Gilbert.

“They need to ensure that shifts are

181

distributed evenly within team members so, for example, when you’re working in the emergency department, they can ensure that you’re not doing too many nights in a row because this isn’t good for your health. By having all this data, hospitals can make sure to better serve their physicians. It also improves their quality of life as it’s easier to swap shifts with a few clicks of a button.”

For patients, the difference has also been palpable. “From feedback we’ve received, we see that both patients and physicians feel empowered,” Gilbert says proudly. “Patients feel like the clinic or the hospital is listening to w w w.he a l t hc a re gl o b a l. com

P E TA L M D

182

them. They can say that they’d prefer

professionals for clinicians, but that

to have an appointment on a Tuesday

is changing. Today, collaboration with

afternoon and you can more efficiently

clinicians is critical. Sensing this sea

meet that demand. Additionally, patients

change, PetalMD has done just that.

also have greater access to informa-

Indeed, in Gilbert’s eyes, what helps

tion so they understand their health-

PetalMD cut through the noise is the

care journey and they feel empowered.”

fact that it has been developed in col-

Technology has the ability to truly

laboration with physicians, with their

revolutionize the healthcare sector but

demands being placed front and center.

as more and more tools enter the fray

“In the beginning, we worked with the

it can be difficult to determine what

physicians, not just the hospitals, who

is truly useful and what could just be

would buy our software,” Gilbert re-

technology for technology’s sake.

members. “We made sure that the solu-

In the past, healthcare technology

tion would be truly helpful to physicians

was built solely by technologists or IT

and that it would meet their needs. That

2009

Year founded

51-200 Approximate number of employees

DECEMBER 2018

CANADA

CLICK TO WATCH : PETAL SCHEDULING – SCHEDULE MANAGEMENT FOR PHYSICIANS 183 way, they’d want to use it.” By proving

feat but by leveraging global exper-

its value to doctors, PetalMD has been

tise, PetalMD has done so seamlessly.

able to leave a lasting impression on

The physician tool provider has close

the Canadian healthcare sector — and

ties with Microsoft — its cloud-based

it’s proven to be a simple recipe for suc-

platform is deployed on Microsoft

cess. Today, the technology has over

Azure — and this has given PetalMD

48,000 users including 32,000 physi-

the global expertise and knowledge

cians across the country, yet PetalMD’s

needed to become a global operation.

growth isn’t just restricted to the Cana-

“Because our infrastructure and

dian market. It is also making inroads

our data are deployed within Micro-

on the other side of the Atlantic; in just

soft Azure, we can ensure that each

over a year, no less than eight hospitals

time we have a discussion with a

in Switzerland, Belgium and France

new country, we’re compliant with

have adopted the PetalMD platform.

this country’s legislation,” explains

Expanding globally can be a difficult

Gilbert. “This is for us a major partnerw w w.he a l t hc a re gl o b a l. com

P E TA L M D

ship advantage because Microsoft has a worldwide footprint. This allows us to deploy our technology within any country in the world without modification. Additionally, their commercial relationships with our customers are amazing. They already know all the hospitals around the world because, of course, most hospitals are already using Microsoft products as we speak.

So, we have relationships with potential customers around the world as well.”

As users’ online experiences become more and more seamless, customers 184

are expecting more from their IT platforms. Looking forward, Gilbert says

“ It seems obvious that a group of physicians would have this technology today, but most of the time, when we deploy PetalMD we replace pen and paper” — Patrice Gilbert, Co-founder and CEO of PetalMD

DECEMBER 2018

the Canadian firm will continue to invest in technology to ensure it can keep pace with the IT landscape at large.

“Thanks to the experience people have with Facebook, LinkedIn, or similar tools, we believe that we can’t lower the bar,” he reflects. “Our IT platform has to be mobile, it has to be accessible on a computer. It has to reflect the highest norm in security, making sure

CANADA

185

that we can work with hospitals and

countries and, because of all the suc-

patient data. So, we’re always invest-

cess we had in Canada, we’re start-

ing in new technology, and this is very

ing to explore these opportunities.

important for our employees.” On top

In the future, I want to take PetalMD

of this, the company is also eyeing up

across the word. We want to take all

further opportunities abroad, building

the lessons we have learnt and apply

on the world-class reputation it has

them elsewhere to help other coun-

developed in the Canadian market.

tries provide better healthcare.”

“Today, we receive many demands from healthcare professionals in other w w w.he a l t hc a re gl o b a l. com

186

A sustainable pioneer in the wind energy market WRIT TEN BY

L AUR A MULL AN PRODUCED BY

TOM VENTURO

DECEMBER 2018

ENERGY

187

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THE NORDEX GROUP

Following a pivotal merger between Nordex and Acciona Windpower in 2016, the Nordex Group is disrupting the sustainable energy market with its customer-centric approach

W

ind power has proven to be big business.

According to the American Wind Energy Association (AWEA), US wind power produc-

tion has tripled over the past decade and there are now more than 54,000 wind turbines operating in 41 states 188

as well as Guam and Puerto Rico. Following a pivotal merger, Nordex Group has profited from this tailwind and today, it stands as the fourth largest wind turbine provider in the marketplace. By bringing together the expertise of both Nordex and Acciona Windpower, Head of Project Management, John McComas, says that this union has been critical to positioning itself as a wind energy front runner.

The advantages have been tenfold. “One of the immediate benefits is size,” McComas explains.

“Acciona Windpower and Nordex on their own were smaller organizations and were not reaching all markets. By merging, we’ve created the fourth largest wind turbine supplier in the marketplace.

Since the marketplace itself is competitive and volume driven, this merger really helped us increase our offering to large-scale clients.” By blending two DECEMBER 2018

ENERGY

189

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THE NORDEX GROUP

190 digitally-savvy companies, the merger has also helped to foster innovation.

The Nordex Group has launched and installed one of its highest yielding and quietest onshore turbines. “In 2019, we will be installing our first commercial 4.5 MW wind turbines in international markets that will incorporate the best elements from the Acciona Windpower turbine with the original Nordex turbine,” notes McComas.

The Nordex Group not only competes with the wind sector but also has to go head to head with the solar, nuclear, hydropower among other sectors.

DECEMBER 2018

“ We’re a very flexible and customer-oriented organization.

We adapt according to feedback in order to provide the best solution from a project to project basis” — John McComas, Head of Project Management

ENERGY

CLICK TO WATCH : ‘WIND TURBINE 3D ANIMATION – NORDEX’ 191 What distinguishes the firm from the rest,

Keeping a vigilant eye on market

argues McComas, is how it collaborates

dynamics, the Nordex Group under-

closely with its clients from start to finish.

stands that the cost of energy is one

“These are projects that are incredibly

of the most important key performance

complex with millions of dollars of invest-

indicators (KPIs) facing the sector

ment, so collaboration is absolutely key,”

today. “The cost of energy reduction

he explains. “No one benefits if people

initiative has become culturally ingrained

are pointing fingers at each other and

in the organization. We actively ask

making excuses. Ultimately, it’s much

ourselves if we can do our tasks more

more positive for the project and every-

efficiently without sacrificing safety

one involved that we work hand in hand

and quality. I think it’s been a success.”

and keep our eye on what the goal really

One way that the wind turbine provider

is: to safely get turbines in the ground

reduces costs is by working closely

and to have them producing clean and

with clients to streamline their opera-

cost-effective power.”

tions. “As soon as the agreements are w w w.busi ne ssc hief. com

THE NORDEX GROUP

inked we have meetings about cost whereby we talk with clients and their selected contractors to see if there’s anything that can be done to cut unnecessary costs out, while still maintaining the positive elements of each party’s relationship,” McComas says. “We have meetings to teach them about how best to install the turbine, what best practices are, what they need to be watchful of, some of the lessons learned that others have encountered. We invite them to our facility to take a look at the manufacturing process. We invite them to audit that process.”

192

Offering powerful wind turbines across the globe, the joint company has more than 30 years’ experience harnessing wind energy. Through its trailblazing turbines the company has delivered more than 23 GW of sustainable energy, but despite its impressive reach it has always ensured that its projects are tailored to the specific client in mind. “We specialize and focus on specific constraints that each developer may have,” explains McComas. “There may be a sound requirement; there may be some greater electrical requirements.”

“We’re a very flexible organization” he adds.

“We’re not mechanical in what we offer from one project to the next. We listen to our clients, we listen to our partner contractors, DECEMBER 2018

ENERGY

“ These are projects that are incredibly complex and could be worth millions, so collaboration is absolutely key” — John McComas, Head of Project Management

193

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THE NORDEX GROUP

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DECEMBER 2018

ENERGY

C OMPA N Y FA C T S

and we adapt according to feedback in order to provide the best solution from a project-to-project basis.”

To meet the ever-changing demands of its clients, the Nordex Group has kept its finger on the pulse of the latest innovations in the sector and it has significantly invested in R&D. “There’s a lot of generation technologies in the marketplace and we need to be able to demonstrate that we can offer the best, most sustainable, most cost-effective technology there is,” observes McComas.

• According to the American Wind Energy Association, US wind power has tripled over the past decade and now, there are now more than 54,000 wind turbines operating in 41 states, Guam and Puerto Rico • The joint company has more than 30 years’ experience harnessing wind energy and has delivered more than 23GW of sustainable energy

“Additionally, regulations are becoming stricter, testing requirements for the equipment are becoming more robust, w w w.busi ne ssc hief. com

195

Gemini Energy Services is an Independent Service Provider for Wind and Solar Projects across North America, built on a foundation of military backgrounds.

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and I would say it’s important for all wind turbine and renewables manufacturers to understand what these requirements are, incorporate them into existing technologies – and to do so quickly.”

At the Nordex Group, this has involved forging strong partnerships with industry leaders. “We can’t do these projects on our own,” McComas adds. “Over the years, we’ve developed strong partnerships with companies, even though we may not have contractual relationships with them. The names that stand out the most are RES America and IEA, DECEMBER 2018

ENERGY

in terms of construction. When it comes

employees – people that have truly

to transportation, we’ve worked closely

gone up the ranks and are now in lead-

with DSV, Coli, Oldendorff, Totrans,

ership positions.” With offices and

BNSFL and ATS and we’ve also had

subsidiaries in more than 20 countries,

a very good manpower partnership with

the wind turbine provider has a truly

One Wind, Run Energy, and Gemini.”

global reach and this expansion is only

With around 5,000 employees under

set to continue. This has proven to be

its wing, the workforce undoubtedly

a key tool for retaining top expertise

has an important role to play in fostering

and talent.

continuous improvement. “The people

“Retention is a key issue for every

who work on these projects every day

manager in the marketplace,” McCo-

are the most important asset we have,”

mas says. “I think we stand out because

notes McComas. “One of the competi-

we provide opportunities to our employ-

tive advantages we have as an organi-

ees. If they work hard and are open to

zation is that we have a lot of seasoned

it, then the company will find them an

Merger occurred in

2016

5,000

Approximate number of employees

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197

THE NORDEX GROUP

198

opportunity around the globe. We also

and center of everything it does. From

have a very personal relationship with

hazardous weather to working at heights

our employees. The people on site

or near high voltages, workers face

know that they can contact the leader-

a series of risks and therefore a strong

ship team directly and the fact that they

safety culture has been embedded into

have a voice and can project that voice

the organization. “In project manage-

to leadership is important.�

ment, for instance, we demonstrate

Recognizing the importance of its

that safety is important to us by being

employees, the company has also

involved in safety walks and safety

worked hard to ensure safety is front

audits when we go and visit sites. This

DECEMBER 2018

ENERGY

“ Listening to the people that are actually conducting the work is key and trying to reflect that in actual change is very important to the overall culture of the firm” — John McComas, Head of Project Management

199

ensures that our safety culture is well

that in actual change is very important

observed,” McComas explains. “We

to the overall culture of the firm.”

also have weekly discussions with site

Today, the Nordex Group has several

managers and safety personnel to hear

projects underway and is nearing

what they’re seeing, what is being

completion on a 95 turbine project in

changed and what they think would be

Kansas, a 101 turbine project in Nebras-

good to incorporate from a safety

ka, and a 16 turbine project in North

standpoint moving forward. Listening

Dakota. Elsewhere, the firm is set to

to the people that are actually conduct-

build its ninth wind farm in Texas.

ing the work is key and trying to reflect

Looking forward, McComas is optimistic w w w.busi ne ssc hief. com

THE NORDEX GROUP

“ The people who work on these projects every day are the most important asset we have” — John McComas, Head of Project Management

200

DECEMBER 2018

ENERGY

that this upward trajectory will continue in the years to come.

“I think most of the globe is starting to flip the switch on what is necessary for the future of energy production,” he reflects. “More regions, particularly industrial countries, are starting to realize the need for greater levels of social and environmental responsibility. I think that the renewable market is going to stay strong and I see a lot of positive things for the Nordex Group moving forward. We have just released our new Delta 4000 wind turbine with a 4.0-4.5 MW generator with a 149m rotor. The first turbines have been installed in Germany and further ones will be installed internationally in 2019 and we expect to see the first installations in the US in 2020, which is very exciting.

Ultimately, we don’t just supply a product that is competitive; we also provide a service that suits everyone’s specific needs. I think that’s what will propel us forward and make us successful.”

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201

SWEDISH MINING AUTOMATION GROUP

202

PROMOTING DIGITAL TRANSFORMATION IN CANADA’S MINES WRIT TEN BY

L AUR A MULL AN PRODUCED BY

RICHARD DE ANE

DECEMBER 2018

MINING

203

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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

204

Business Sweden Canada with partners from the Swedish mining industry has created SMAG to help the mining sector evolve into a more sustainable and innovative industry. We spoke to Project Manager and Mining Industry Advisor, Christian Orrego Silvander, to find out more

DECEMBER 2018

MINING

M

ining is often cited as one of the last remaining industries to be disrupted by technology, but that is changing quickly.

From driverless trucks to robotic drills, digitisation is quickly bringing a new measure of safety to mines. It’s also boosting the efficiency of how we obtain the precious minerals needed to make everything from modern cars to devices. In the coming years, mining automation is primed for explosive growth, and it seems that one Nordic country is set to be at the epicentre of it all.

Sweden may be a small mining nation but when it comes to mining technology, it’s considered to be in a league of its own. Looking to collaborate and foster innovation in the mining sector, six Swedish mining technology firms have joined forces with Business Sweden to create the Swedish Mining Automation Group (SMAG). Formed just one year ago, SMAG is a collaborative ecosystem that plans to revolutionise mining, creating a more sustainable industry by innovating holistic solutions together with mining companies.

Jointly owned by the Government of Sweden and representatives from the Swedish business community, Business Sweden works across an array of different industries but mining has proven to be a key area for optimism. One such person who helped to steer this new focus is Business Sweden’s Project Manager and Mining Industry w w w.busi ne ssc hief. com

205

S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

Advisor Christian Orrego Silvander. He believes that this collaboration between Swedish automation groups and other global miners is a win-win partnership.

“Our mission is to help Swedish companies grow internationally, as well as to attract foreign investments to Sweden,” Silvander explains. “Sweden has a long history of providing solutions to the mining industry and it’s quite famous for having some of the leading original equipment manufacturers (OEMs) in 206

mines. Today more than 50% of the technology used in underground mines comes from Sweden.”

Ericsson, Eprioc, SKF, Mobilaris, Sentian Technologies and Scania Mining: the founding members of SMAG make for impressive reading, and in conjunction with Business Sweden, they plan to bring the latest industry know-how and technologies to mining regions across the globe. One such country where SMAG is leaving a lasting impression in is Canada. A force to be reckoned with on the mining stage, Canada is a country that is renowned for its mining heritage. Last year, the industry contributed CAN$72bn DECEMBER 2018

MINING

“ SWEDEN HAS A LONG HISTORY OF PROVIDING SOLUTIONS TO THE MINING INDUSTRY AND IT’S QUITE FAMOUS FOR HAVING SOME OF THE LEADING ORIGINAL EQUIPMENT MANUFACTURERS (OEMS) IN MINES.” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden

(US$54.8bn) to its GDP, according to Natural Resources Canada. As such, Business Sweden and SMAG decided to zero in on Canada as a key regional focus.

“The reason we revived this focus on mining was due to the positive outlook on mineral prices as well as the environment here in Canada,” summarises Silvander. “The mining industry is also focusing greatly on creating a more sustainable and innovative future through industrial collaboration and this resonates quite well in Sweden.

Even though we’re quite a small mining nation – we only have 15 active metals mines – we have a long history of innovating through collaboration.

That aligns well with the vision of the w w w.busi ne ssc hief. com

207

S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

CLICK TO WATCH : ‘SIMS MINING — THE HORIZON 2020 PROJECT’ 208 Canadian mining industry too, which is

don’t have a strategy for digitising or

hoping to become more sustainable

automating their mines, but rather they

and innovative.”

have a strategy to improve safety and

There’s a lot Canada can learn from

increase productivity,” Silvander explains.

Sweden, observes Silvander, citing

“For them, the best way to do that was

Swedish mining operators Boliden and

to use digital technology.” Looking at

LKAB as “amongst some of the most

connectivity, precision technology,

progressive in the world”. Both of these

stabilising processes and eliminating

companies have been early adopters

waste as well as implementing new

of digital and automation technology

mining methods, these mines have

but interestingly, Silvander points out

proven to be gleaming examples of the

that this isn’t about technology for

benefits of mining automation and this

technology’s sake it’s, first and foremost

technological prowess hasn’t gone

about safety, productivity and efficien-

unnoticed worldwide.

cy. “For example, Boliden said that they DECEMBER 2018

“Recently, there’s been a lot of

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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

FA C T S

• Last year, the mining industry contributed CAN$72bn to Canada’s GDP, according to Natural Resources Canada

210

examples of different demonstration projects that have been done mainly in

with other leading mining nations.”

Cross-country collaboration is at the

Sweden and Europe quite recently,”

core of SMAG’s mission and ethos. But

continues Silvander. “All of them have

how has the organisation managed to

a goal to create safe and efficient mines

bridge both a geographic and cultural

by implementing automation technology.

divide? “When we started this initiative,

But this shouldn’t only be on Swedish

we tried to connect with key mining

soil. This should be something that is

organisations, the ones that are driving

implemented internationally. For Sweden,

innovation within the industry. We

with a population less than 10 million

started working with these regional

that’s dependent on international

and national companies. We found out

collaboration, I see this as a very good

their needs, how they operate, and how

opportunity for us to be the one who’s

we can collaborate with them because

leading the development but together

we all more or less have the same

DECEMBER 2018

MINING

ambition of transforming the industry to make it more sustainable.” By analysing the individual needs of mining operators and disseminating the ‘Swedish mining model’, SMAG has the ambition to help Canadian miners navigate their long-term roadmaps to digitise and automate their mines but, perhaps more importantly, they are also lowering the barriers between suppliers and mining companies to foster cooperation and future innovation.

“With SMAG, we’re trying to foster a co-development culture and lower

E X E C U T I V E P R OF IL E

Christian Orrego Silvander Management consultant with passion for innovation, strategy and collaboration. Strong communicator with expertise in conceptualizing business ideas and pitching technology solutions.

In depth experience of business development and internationalization of tech companies and start-ups in industries such as mining, healthcare, biotech, and cleantech.

Currently leading the Swedish Mining Innovation Group (SMAG) with six leading mining suppliers with the intention to enable holistic solution within mining through cooperation with mining companies. In addition establishing strategic alliances with Canadian stakeholders with the objective to establish a mining collaboration platform between Sweden and Canada. w w w.busi ne ssc hief. com

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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

the variant between vendors and

they’re very keen to transform the

mining `that can really be learned

industry. But I think by allocation

from Sweden,” observes Silvander.

more resources to trying innovative

“The Canadian Mining industry has

solution in the mine rather than

created solid roadmaps for innova-

establishing new roadmaps for them,

tion but there is a need to convert

will accelerate the transformation.

them to actions. Most of the industry

That is really what I see as the missing

also have innovation managers so

link to this puzzle. I think they are

212

DECEMBER 2018

MINING

“ TODAY MORE THAN 50% OF THE TECHNOLOGY USED IN UNDERGROUND MINES COMES FROM SWEDEN” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden

213

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True digitalization of underground mines, enabling doubledigit productivity increases AND safety improvements.

Real-time Situational Awareness

Ventilation On Demand

Fix those low hanging fruits that waste time and lower face utilization.

We let the presence of machines control the ventilation which is very fast to setup remotely.

Short Interval Control

Emergency Evacuation

From just being monitoring to become operational and able to replan during a shift.

Save lives by shorten the time to evacuate the mine in the case of an emergency.

Optimized Machine Utilization

Mass Localization

Analyze integrated machine data vs plan to optimize your machine utilization.

Another low hanging fruit that locates equipment in a very cost-efficient way.

Traffic Awareness

Improvements by Analytics

Minimizing traffic congestions and make your transports smooth and safe.

Enables you to continuously monitor the face utilization outcome and track productivity.

www.mobilaris.se/mce

MINING

215

going in the right direction and SMAG

munication company that offers mine

could definitely help with this challenge.”

connectivity and today, they’re deploy-

How to meet the demands of Industry

ing 5G technology which could be an

4.0 is one of the most pressing ques-

innovative way forward for mines in

tions for mining operators today. By

Canada. We also have one of the most

working with a rich ecosystem of holistic

prominent OEMs, Epiroc, who when it

solutions rather than single products,

comes to the automation of equipment

SMAG believes it provides a unique

or meeting KPIs in underground mines,

solution. “This way of working together

they are one of the firms leading the way.”

with a group, as opposed to one vendor

Other members of the ecosystem

is a very new concept, especially in the

include Mobilaris, which provides critical

mining industry,” asserts Silvander.

decision support for production

“There’s also a mix of different compa-

efficiency and safety. “They’re very

nies. Take, Ericsson: they’re a telecom-

prominent in the mining intelligence w w w.busi ne ssc hief. com

S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

480+

Number of Business Sweden employees

2017

Year founded

53

Number of offices around the world

216

“THIS WAY OF WORKING TOGETHER WITH A GROUP, AS OPPOSED TO ONE VENDOR IS A VERY NEW CONCEPT, ESPECIALLY IN THE MINING INDUSTRY” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden

DECEMBER 2018

area and are developing tools for positioning and enabling real-time short-interval control,” highlights Silvander. Sentian Technologies has also played a key role in this ecosystem, standing as a company with a long background in AI. Additionally, Scania Mining, which Silvander says “provides fleet management and mine site optimisation by applying lean manufacturing principles” has gotten onboard

MINING

217

alongside SKF, which has “been in

is eyeing up further opportunities in

Canada for over 100 years and are

mining hubs like Australia and Chile.

experts in rotating machinery, reliability

“We have an ambition to go global,�

and offer advanced data analytics

he says brightly.

and predictive maintenance. Looking forward, Silvander is keen to include more suppliers in this ecosystem and

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218

ACCENTURE ­— DIGITAL TRANSFORMATION THROUGH INDUSTRY X.0 WRIT TEN BY

TIL A K MITR A

PRODUCED BY

ANDY TURNER

DECEMBER 2018

TECHNOLOGY

219

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ACCENTURE

ACCENTURE IS CHANGING THE DIGITAL LANDSCAPE WITH INDUSTRY X.0; A FRAMEWORK THAT UNDERPINS THE DIGITAL REINVENTION OF INDUSTRY, THROUGH WHICH ORGANIZATIONS LEVERAGE ADVANCED DIGITAL TECHNOLOGIES TO TRANSFORM THEIR CORE BUSINESS OPERATIONS…

T

hese are unprecedented and exciting times, an era in which the very fabric of human living is being reimagined and redefined every day by the

ways in which humans now get to interact with the ‘things’ 220

around them. The ‘things’ have been injected with life; life in the form of software-defined intelligence that can not only make the things ‘think’ and act smartly, but also connect and collaborate with other things and more importantly, with humans. Our social network is not just defined by our friends and relatives any more – there is a new class of friends, in the form of the ‘living things’ all around us.

Connectedness has been redefined – it is not only confined to just the 7bn+ humans anymore but is extended to include the 8bn+ ‘smart and living things’ that exist today.

Coexistence with smart living things has evolved into embodied cognition – our smartphones and cars are extensions of our character and profile and they seamlessly transfer the extensions when moving away from one and entering into the space of the other. The rate at which things are getting smarter and connected is staggering.

Gartner projects there will be in excess of 20bn smart DECEMBER 2018

TECHNOLOGY

221

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ACCENTURE

and connected things by 2020. There

centered worker and end-user experi-

has to be a structured and methodical

ences, and ultimately to drive innovation

approach to manage this exponential

and growth. New levels of operational

growth of our connected ecosystem

efficiencies are harnessed – in the core

such that the inclusion of the new class

business operations of research and

of ‘smart and living things’ into day-to-

development (R&D), engineering,

day life, is focused on increasing human

product design and manufacturing,

productivity and efficiency, and ultimate-

by leveraging advanced sensors and

ly improving our lifestyle. A framework

networks, and by embedding software-

is imperative to making this connected

enabled intelligence into integrated

ecosystem work for us.

products and services. Workers and

At Accenture, Industry X.0 is defined 222

customer experiences are reimagined

as such a framework that underpins

and redesigned through immersive

the digital reinvention of the industries,

and AR/VR technologies. Innovation

through which organizations leverage

and growth is accelerated – new

advanced digital technologies to

business models are formulated and

transform their core business opera-

revenue streams generated by unlock-

tions in order to reimagine human-

ing and harnessing the value trapped inside the ecosystem that is developed through connectedness.

One of the fundamental philosophies of Industry X.0 is to transform the core business systems and processes.

By introducing modern architecture patterns and principles, legacy systems can be modularized and modernized which then opens opportunities to

Accenture Industry X.0 experts spent the day talking to visitors about real use cases with industry examples at ITAP 2018

DECEMBER 2018

introduce digital technologies into legacy systems. The digital technologies (e.g. microservices, analytics and immersive

TECHNOLOGY

CLICK TO WATCH : ‘ACCENTURE — REINVENT POSSIBILITY WITH INDUSTRY X.0’ 223 user experiences) introduce layers of

1. Transform the core – invest in

utilities that unlock the trapped value

digitization along with horizontal

from such systems and processes.

and vertical integration of enterprise

The value realization and operational

systems in core business operations

efficiency gains naturally lead to more

around R&D, product engineering &

viable cost economics. The savings

design, and manufacturing operations.

obtained can be subsequently appor-

2. Focus on experiences and

tioned to invest in rotating the business

outcomes – shift the business strategy,

strategy and innovation to the ‘new’ –

innovation focus, and core competency

an absolute imperative to sustain and

away from product centricity and into

thrive amidst the systematic digital

a needs-first true experiential platform.

transformation of everything. To

3. Rearchitect the ecosystem – to

consolidate, there are six foundational

identify, assemble and liaise with the

capabilities that should underpin the

right ecosystem partners to drive

digital business strategy to systemati-

innovation and differentiated capabilities.

cally rotate to a new digital business:

4. Innovate new business models – w w w.busi ne ssc hief. com

MindSphere lets you speak with the Internet of Things Every machine holds a wealth of data.

MindSphere – the cloud-based, open IoT operating system – leverages this data and makes it available for advanced analytics.

siemens.com/mindsphere

Siemens’ MindSphere: Empowering the Industrial IoT revolution and digital enterprise Industry 4.0 is here

End-to-end digital twin

Around the globe, industries are searching for new ways to optimize operations, improve products, increase sales, and reduce costs and risk. Automation, digitalization and the adoption of the Industrial Internet of Things (IIoT) are key requirements for companies that are embracing Industry 4.0, as they seek to lower costs, drive new efficiencies, and find new business opportunities.

The ability to simulate, predict and optimize products, processes, and services before investing and deploying is now a reality with performance data and insights from MindSphere. Creating digital replicas of physical assets, processes and systems, by using data from multiple sources, allows near-real-time representation of how IIoT devices operate throughout their lifecycle.

During the race toward IIoT, however, some have struggled to unify disparate assets that lack standards or a universal method of connection. Enterprises are faced with proprietary and legacy applications, on-premises infrastructure, and piecemeal solutions that can be barriers to transforming and reinventing their business.

With Siemens’ portfolio of solutions to deliver a complete end-to-end digital twin, rapid and efficient prototyping and accurate modeling empower closed-loop feedback and continuous optimization of new products, production, and performance—at minimal cost.

Enter MindSphere MindSphere is a cloud-based, open IoT operating system developed by Siemens, that enables industries to easily connect machines, devices, and physical infrastructure to the digital world. With extensive device and enterprise connectivity, MindSphere enables powerful industry solutions with advanced analytics, as well as complete digital twin methodologies and tools throughout the value chain.

Transforming big data into smart data The MindSphere operating system allows you to quickly connect, bring data into our operating system, and then build applications that can turn that data into business value.

“The MindSphere team at Siemens is very excited to be working with Accenture as a MindSphere Platinum Partner. The Accenture Industry X.O vision fits perfectly with the transformative business opportunities of introducing Siemens’ MindSphere IoT operating system into client environments.

Partnering with Accenture gives Siemens the ability to leverage MindSphere with Accenture’s outstanding integration abilities and deep industry knowledge, to help enable our clients’ digital transformation journeys.”

Paul Kaeley Senior Vice President Global Partner Ecosystem Siemens PLM Software

Applications

Accelerate digital transformation With an end-to-end IIoT digitalization approach you gain: – – – – –

End-to-end IoT security Managed service platform Extensive connectivity options Open platform-as-a-service Multiple IaaS in public, private, hybrid cloud and on-premises – Advanced analytics – Global scalability

MindSphere Connect

Companies connecting physical assets and IT systems to the digital world are already reaping the benefits, sharpening their competitive edge, and realizing greater performance and profitability. It’s never too late to begin or accelerate your digital transformation journey, and MindSphere can help you harness a new world of IIoT potential.

siemens.com/mindsphere mindsphere.io/partner Note: MindSphere is a registered trademark of Siemens AG.

ACCENTURE

by offering consumer experiences,

more than a moment; what is 4.0 today

leveraging industrial consumerism

is quickly going to progress to 5.0, to

patterns to disintermediate and reach

then 6.0, and counting. The framework

the end consumers, while innovating

for digital transformations hence needs

new revenue streams and models.

to be constantly assessed, analyzed

5. Build the workforce – in a commensurate capacity by new skilling, re-skilling, and upskilling the next generation talent.

6. Manage the wise pivot – balance the investment, workforce, and funds

226

“ THE ESSENCE OF INDUSTRY 4.0 IS BASED PRIMARILY ON HARNESSING OPERATIONAL EFFICIENCIES IN MANUFACTURING OPERATIONS”

and refreshed to take advantage of the rapid advancements.

Secondly, it is important to acknowledge that the essence of Industry 4.0 is based primarily on harnessing operational efficiencies in manufacturing operations by leveraging technology to increase the Overall Equipment Effectiveness (OEE) which is typically defined as the product of Availability,

— Tilak Mitra, CTO Industrial, Managing Director, Accenture

Productivity and Quality metrics.

allocation between transforming the

increasingly favoring innovation around

core and rotating to the new.

the generation of new revenue streams

The term X.0, in Industry X.0, is neither

However, digital transformation is truly much more than just the operational efficiency gains. Business value is

that is not only driven by innovative

coined in error, nor it is a misrepresen-

As-A-Service business models but

tation of 4.0 (as in Industry 4.0): it has

also through hyper personalization of

a purpose and rationale. To begin with,

consumerism that is driving micro

the term X.0 is in recognition and

segmentation and hence an exponen-

acknowledgement of the fact that digital

tial expansion of the addressable

technologies are advancing at such

consumer base. Industry X.0 addresses

a rapid pace that the technology staging

not only the cost economics driven by

posts can no longer be pinned down for

traditional operational efficiencies of

DECEMBER 2018

TECHNOLOGY

Industry 4.0 but also the generation of

tions are only possible when they are

new consumer centric business models

not just episodic in nature, but strongly

and hence new revenue streams.

encouraged by their inculcation into the

X.0 signifies the exponential pace of

fabric of the enterprise. At Accenture,

progression in digitization.

Industry X.0 is one of the firm’s strategic

Digital transformations are technology enabled but business led. Bold innova-

growth areas and has aligned focus, investment, capabilities and expertise

E X E C U T I V E P R OF IL E

Tilak Mitra is the CTO of Industrial Manufacturing applied to the broad industry sector of Industrial. In his role, Tilak develops and drives global thought leadership and innovation around digital transformations, for Accenture’s truly world-class capabilities, solutions, and offerings, in Industrial and Industry X.0. He is responsible for combining his technology expertise and foresight with deep industry domain knowledge, in Automotive, Industrial Equipment, EPC and Freight & Logistics, to develop truly transformative solutions for a diverse set of clients.

He also scales true lateral innovation by leveraging and combining his experience, insights and successes in adjacent industries like Oil & Gas, Chemicals & Petroleum, Aerospace and Electronics.

Tilak is a master at abstracting and packaging deep technology landscapes into true business drivers, value propositions, and business models, and empower the C-suite to shape and drive their organization’s next generation transformations and innovations.

He is also a prolific writer, having authored and co-authored three books and many journal publications.

He blogs his ideas, thoughts and vision and firmly believes in scaled information sharing. w w w.busi ne ssc hief. com

227

IF YOU DON’T MAKE WHAT YOUR CUSTOMER WANTS, THERE’S ONLY ONE THING LEFT TO DO. MAKE IT.

STREAMLINE YOUR SUPPLY CHAIN WITH SAP. With SAP’s solutions for the digital supply chain, you can design flexible, modular products that your clientele can customize effortlessly. So you can build to order. Delight any customer at any time. And transform your business just as fast. sap.com/scm

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

THE QUEST TO CONNECT DIGITALLY TO PERFECT REALITY. In a world fraught with economic, political and social uncertainty from tariffs to trade, regime changes and civil unrest to an increasing social influence on markets, businesses must reinvent themselves to stay competitive and survive.

These pressures and those brought forth by the digital economy is turning industries upside down. Companies are relying heavily on the formation of highly agile supply chains to quickly capitalize on new opportunities and to break down old barriers.

B:303 mm T:297 mm S:291 mm

Companies of all kinds are moving into industry sectors and markets previously shut off to them and competing for market share in completely new ways.

The days of mass production are yielding to customer expectations for mass customization as companies move away from a wholesale model to a more customer centric approach.

Intelligence in the supply chain with smart products that can sense consumption and predict replacement needs are becoming the norm and customers are making purchase decisions based on an entirely new basis. Companies are expected to tailor their products to the unique needs of their customers in a highly variable configuration and fluctuating demand environment.

And, on top of that, they expect this to be done at low cost, with the highest measure of quality, delivered in record time!

A few years ago, in a meeting at Nike, I was witness to the marketing team announcing their intent to provide a uniquely designed shoe for every consumer. The supply chain,

design and manufacturing representatives were looking uncomfortable to say the least. How could they support such a seemingly crazy idea? Yet, they did it by creatively redefining and digitizing their supply chain processes from initial design definition to manufacturing and logistics. By taking advantage of this, my son, who is an aspiring MLB player now wears fully customized cleats bought for a mere 15% premium and delivered within a two-week window – an amazing “feet”.

At SAP, we are helping our customers adapt to the ever-increasing demands of the digital economy by connecting their processes digitally across the entire supply chain. This enables a digital supply chain that transitions their go to market approach from cost savings and efficiency to a strategy that drives competitiveness and differentiation. We call this initiative Connect Digitally to Perfect Reality and while the subject touches on so many aspects of a company’s business, it ultimately gives the customer the perfect reality of their requirements – the perfect baseball cleats.

Robert Merlo VP Marketing SAP Digital Supply Chain

ACCENTURE

“ THERE IS AN X FACTOR IN ACCENTURE’S INDUSTRY X.0 THAT CONTINUES TO DIFFERENTIATE OUR CLIENTS AS THEY INITIATE, ACCELERATE, INDUSTRIALIZE, AND VALUE REALIZE THEIR DIGITAL TRANSFORMATION JOURNEYS”

230

strategy from building products to delivering outcomes through digital services and human-centered experiences around the physical product or an ecosystem of products – there is a palpable shift in strategic innovation away from product centricity to building true experiential platforms. Connected Products has a pathway that typically follows the progression from Products, to Products & Services, to Products

— Tilak Mitra, CTO Industrial, Managing Director, Accenture

& Differentiated Services, and ultimately

to be commensurate with the industry

potentially more exponential, uptake

direction and demands. Accenture

path. While the first wave of maturity of

continuously refreshes, refines and

connected products enhances products

leverages the Industry X.0 framework

and the spare parts sales, the second

to not only help its clients build a strategic

wave of Products & Services introduces

business case and roadmap for digital

value through offering customized

transformation but also help them

after-sales plans and hence increased

initiate, prototype, demonstrate value,

customer touchpoints and engagements.

and then industrialize and sustain their

Products & Differentiated Services

digital journey.

opens channels for upselling more

Innovation in Industry X.0 broadly

to Products As A Service. The benefits and value realization follow a similar, but

premium services fostered by increased

touches the disciplines of Connected

maturity and sophistication of the

Products, Connected Operations,

product and its overall performance.

Connected Worker and the Connected

Products As A Service opens entirely

Enterprise. Across all the disciplines

new opportunities for different economic

there is a resonating shift in business

models like risk-and-reward based

DECEMBER 2018

TECHNOLOGY

CLICK TO WATCH : ‘WEF 18 — ACCENTURE — INDUSTRY X.0: DIGITAL REINVENTION OF INDUSTRY’ 231 revenue sharing, ‘pay for what you

transformations resulting in:

consume’, as well as other innovative

1. Autonomous robots – which

consumption-based payment models.

are enabling smart, connected and

The value progression not only increases

intelligent machines to collaborate

the number of touchpoints along the

alongside humans in transforming

consumer’s interaction with the product

business processes.

but also increases the addressable

2. Horizontal and vertical integra-

customer base. It is the layers of utility

tion – of the enterprise and business

that are innovatively engineered into

ecosystems (think of partners and

the connected product that fosters the

suppliers) to develop real-time integrat-

exponential uptake; a few of which go

ed views of data and networks across

on to disrupt the market.

the value chain.

From a technology standpoint,

3. AR/VR – that is reimaging

a set of digital technologies are settling

assisted diagnostics, support and

down to form the foundation of digital

maintenance. w w w.busi ne ssc hief. com

TECHNOLOGY

4. Additive manufacturing – where technologies like 3D (and most recently 4D) printing are used for production of small batches of highly customized and programmable products.

5. Cloud – that has helped in commoditizing the compute, storage and network consumption among other well-known advantages of scale and the sharing economy.

6. Simulation – providing the ability to digitally simulate entire production assembly lines for rapid prototyping and innovation before even the

from the cyber threat vectors that

physical construction has started.

are continuously on the rise as more

Think digital twins!

systems gets interconnected.

7. Big Data & Analytics – that is truly

The Industry X.0 framework fosters

enabling massive scale data processing

the convergence of both strategy-led

and insight generation targeted at

as well as technology-led initiatives

timely decision making across the key

with the methodical and systematic

business processes.

focus of helping organizations formu-

8. IIoT – i.e. the Industrial Internet

late an innovation driven strategy and

of Things that is enabling the infusion

pathway for digital transformation that

of intelligence into products, process-

is underpinned by both quantitative

es, and services that communicate

and qualitative business value.

with each other and humans over a global network.

An example of a qualitative lever is a business strategy around industrial

9. Cybersecurity – ensuring that

consumerism. For example, the essential

the enterprise assets, both physical

philosophies of industrial consumerism

and IT infrastructure, are truly secured

are based on the tenets that: w w w.busi ne ssc hief. com

233

ACCENTURE

“ IT IS IMPORTANT TO DEVELOP PRODUCTS WITH A MINDSET THAT IS NOT PRODUCT FIRST BUT INSTEAD IS DRIVEN BY VALUEDRIVEN END-USER EXPERIENCES” — Tilak Mitra, CTO Industrial, Managing Director, Accenture

1. The loci of power have shifted out 234

is more collaborative, and ultimately more co-creative, than the current consumption driven mindset.

Innovations that are driven by such mindsets are proven to open up new opportunities and hence revenue streams.

Examples of quantitative value levers are often use-case driven. In boosting operational efficiencies, untapped or unrealized value is more often than not related to availability,

of the organizations and into the hands

productivity and quality of not only

of the consumer. The ubiquity of choices

the operational processes but also of

is leading consumers down the path of

the final product that is built. Some

intolerance to anything that is medio-

of the use cases seen as very common

cre; they have multiple choices to shift

across a wide diversity of industries

to other brands.

are around:

2. Since the choice and control are now in the hands of the consumers, it is important to develop products with a mindset that is not product first but instead is driven by value-driven end-user experiences. This will be

• Optimized asset utilization.

• Asset downtime prediction and reduction.

• Production throughput and yield optimization.

• Reduction of total maintenance

imperative for some organizations, e.g.

cost – proactive reduction of

industrial manufacturers and retailers,

repair and fix cycles.

so as to leverage the increased number

• Early detection and

of consumer touch points (with the

mitigation of operator related

connected products) and convert them

productivity losses.

favorably into a consumer behavior that DECEMBER 2018

• End to end supply chain visibility.

TECHNOLOGY

• Q uality early warning on both process and product quality parameters.

Another dimension of quantitative value lever is delivered through executing on laser focused initiatives targeted at cost take outs across the various operating business units.

Applying the proven framework of Zero-Based Budgeting (ZBB) into manufacturing processes and operations has proven dividends on significant cost take outs. Accenture uses the framework called ZBx where it applies its uniquely tailored techniques of Zero-Based budgeting to spend (ZBs), to supply chain (ZBSC), among other pertinent dimensions. Applying ZeroBased Spend (ZBs) and Zero-Based Supply Chain (ZBSC) techniques and methods to the Cost of Goods Sold (COGS) brings a unique dimension to optimizing operational efficiencies in manufacturing and is leveraged as a part of the Industry X.0 framework.

In order to make Industry X.0 real for our clients, it is important to have an implementation and execution engine – one of Accenture’s flagship differentiators in Industry X.0, as it pertains to w w w.busi ne ssc hief. com

235

IFWE unlock the value of the virtual Can we make our future more sustainable?

Today’s manufacturing organizations are in the midst of a global Industry Renaissance. This renaissance extends beyond delivering digitalization and personalized solutions. The emergence of new businesses and new categories of solutions, processes and services prioritize sustainable innovation and experiences over productivity gains. Digital experience platforms are the infrastructure of this industry renaissance.

To keep up, businesses must be faster, more integrated and more agile than ever. Those leading the way are the ones that create value through networks to deliver new products that are both sustainable and innovative. A talented workforce that is agile and committed to constant learning of new ways to deliver new products, services and solutions in a combined virtual and real way will win the race for new customers.

Discover more at: www.3ds.com

TECHNOLOGY

the implementation of digital transformations, is called the Digital Services Factory (DSF). DSF is an execution framework that packages a continuously refreshed set of processes, tools, skills, advanced digital technologies and operating models that are carefully designed and packaged to accelerate the clients’ digital transformation journeys.

The primary challenge it addresses is time to market – not only does it takes an enormous effort to bring innovation to market but also some laser focused discipline to pivot on a shifted business

“ A VISIT TO ONE OF THE ACCENTURE INNOVATION CENTERS IS OFTEN A STEPPING STONE TO SHOWCASE THE ART OF THE POSSIBLE IN ADVANCED DIGITAL TECHNOLOGIES AND INDUCE CONVERGENT THINKING TO FORMULATE OUR CLIENT’S DIGITAL AGENDA” — Tilak Mitra, CTO Industrial, Managing Director, Accenture

strategy, thinking, and core competency

with the client, bringing in not only the

that is away from a products-first and into

best capabilities of Accenture, but also

a needs-first, outcome-driven innovation

that of the ecosystem’s partners and

model. DSF works by offering an end-

alliances, to collaborate and co-create

to-end innovation service: from ideation

along with the client’s best minds. The

to prototyping, industrializing, scaling,

customized outcomes are then quite

and finally operating the digital business

easily fabricated into the client’s unique

– a combination that is hard to aggre-

ecosystem. Clients are encouraged to

gate and harmonize. The framework is

first try using the execution engine

customized to suit every client’s unique

before they buy fully into it. Once used

requirements as well as their current

and implemented, and once the value

maturity vis-à-vis their desired state in

realization benefits are obtained through

their digital transformation journey. One

DSF, the clients gain an innovation

of the core principles of using the DSF

engine and a well-established factory

is that it is executed as a joint venture

for building, hardening, and offering w w w.busi ne ssc hief. com

237

ACCENTURE

“ NOTHING SUCCEEDS LIKE SUCCESS AND LEVERAGING THE INDUSTRY X.0 FRAMEWORK FOR DIFFERENTIATED ADVANTAGES – OF INNOVATION, AGILITY, AND TIME TO VALUE, IS NO DIFFERENT!” 238

— Tilak Mitra, CTO Industrial, Managing Director, Accenture

digital services to their end customers.

of innovation, agility and time to value

There are way too many organizations

– is no different. Although there is

who have already dipped their feet

a significantly growing number of case

into innovation through a series of

studies that exemplifies the true value

prototypes and proof-of-concepts.

of leveraging the Industry X.0 frame-

However, and as is often seen, it is not

work, two which best illustrate this are

until the time comes to industrialize

Schneider Electric and Biesse Group.

a service or a product or an offering that the true value of DSF comes to

SCHNEIDER ELECTRIC

the advantage – in terms of scaling an

Schneider Electric is a French multina-

innovation fast and accelerating an

tional corporation that specializes in

offering to market, DSF is the answer.

energy management and automation

Nothing succeeds like success,

solutions spanning hardware, software

and leveraging the Industry X.0 frame-

and services. Schneider wanted an

work for differentiated advantages –

asset monitoring solution to monitor

DECEMBER 2018

TECHNOLOGY

and together they developed and piloted their digital transformation program leveraging the DSF. By collecting data and applying AI and deep learning algorithms, Accenture helped to not only develop and industrialize the service offering but also an operating model to operate it at scale.

The service offering helped to not only prevent critical asset failure but also prevent power grid downtime. The true value came when Schneider Electric realized its time horizons from ideation to field enablement were cut from its typical three-year timelines down to the heat and humidity of its electrical

a whopping eight-month cycle. The

distribution assets. They wanted to use

true power of Industry X.0 and DSF

small wireless thermal sensor technol-

was realized.

ogy for sensing, coupled with the LORA wireless protocol for communication.

BIESSE GROUP

Monitoring the heat signature of its

Biesse Group is a global leader in

critical assets is extremely important

technologies for processing wood,

to Schneider not only to extend their

glass, stone, plastic and metal. It

lifetime but also from a safety stand-

designs, manufactures and distributes

point. This was a very important

machines, integrated systems and

program for Schneider – important

software for manufacturers of furniture,

enough that it could not wait for their

door/window frames and components

typical three-year timelines to take an

for the construction, shipbuilding and

innovation from ideation to the field.

aerospace industries. Based on

Schneider teamed up with Accenture

customer research and the company’s w w w.busi ne ssc hief. com

239

ACCENTURE

strategy to develop true experiential

using the Accenture Connected

platforms with new digital capabilities,

Platforms as a Service (CPaaS) IoT

Biesse Group wanted to improve

platform deployed on Microsoft Azure.

operational efficiencies, reduce costs

240

The platform’s flexible architecture

and open up new revenue streams

and preconfigured IoT services enabled

such as machine usage analysis and

the team to reduce the overall program

production process optimization, much

complexity and duration using pre-built

beyond just machinery production.

and pre-configured architectures,

As part of the roadmap, Biesse Group

technologies and APIs. This enabled

customers would be able to choose

Biesse Group to start piloting a solution

from different subscription levels that

to clients in only five months. The solution

offer an extensive range of features

was piloted across eight machines at

from remote diagnostics, warnings and

a subset of customers with services

alerts to more sophisticated production

like preventive maintenance alerts,

process optimization capabilities that

machine management and manufac-

help improve overall business produc-

turing events analysis. The pilot helped

tivity and customer satisfaction. They

Biesse improve customer service and

collaborated with Accenture to build the

loyalty, reduce warranty and mainte-

business case, an operating model, and

nance costs and obtain real-time

a cloud-based pilot and roadmap, for

customer data and alerts. The insights

a connected asset management solution

from the field helped Biesse to improve product development, adding features that would be beneficial to the customer.

These insights also enabled the company to develop closer customer relationships by providing suggestions on how to get the most productivity and efficiencies from its machines. For customers, the flexible menu of services helps to improve machine productivity and

DECEMBER 2018

TECHNOLOGY

241 customer satisfaction by minimizing

continuous exploration, looking for new

machine outages through predictive

breakthrough thinking and adopting

maintenance and in-depth analytics.

a culture that fosters an innovation

Based on the pilot’s success, the Beisse

engine. In order to keep up, the rate of

Group planned to roll out services

innovation must also be exponential.

encompassing 20,000 machines; the

Organizations need to be bold enough

progression from pilot to industrializa-

to encourage continuous exploration of

tion and accelerated scale out is where

innovative ideas to stay relevant in the

the value of leveraging the DSF execu-

digitally disruptive market. Business

tion framework became paramount.

leaders must not only embrace but also

To reiterate, it is important to acknowl-

foster a business culture that encour-

edge that true innovation cannot be

ages bold innovations. At Accenture it is

sustained through episodic attempts.

seen as important for even the smartest

Innovation should be a continuum,

of business and technology leaders to

embracing an embedded fabric of

get away from their daily business w w w.busi ne ssc hief. com

ACCENTURE

routine; quite frequently the best ideas are triggered when leaders and executives are taken out of their daily grind and immersed into an environment that not only fosters high impact disruptive thinking but also provides an opportunity to experience the art

242

“ ACCENTURE BELIEVES IN BRINGING ITS CLIENTS INTO ITS GLOBAL INNOVATION CENTERS THAT ARE TRUE SHOWCASES OF DIGITAL TRANSFORMATIONS IN THE FIELD OF INDUSTRY X.0!”

— Tilak Mitra, CTO Industrial, Managing Director, Accenture

$34bn Approximate revenue

Dublin Company HQ

449,000

Approximate number of employees

relevance. While some demonstrations focus on operational efficiency gains some others demonstrate the art of

of the possible that may be applicable

the possible in hyper personalization,

to their business.

industrial consumerism and generating

Accenture believes in bringing its

new revenue streams. Client leaders

clients into its global innovation centers

brought into such centers are allowed

that are true showcases of digital

to explore the true art of the possible

transformations in the field of Industry

in technology-led digital disruptions.

X.0. These innovation centers are set up

This induces their creative ideas as they

in true manufacturing like facilities that

get to touch, feel, and play around with

showcase a diverse display of advanced

the solutions on display. More often

digital technologies with industry

than not, there is at least one solution

DECEMBER 2018

TECHNOLOGY

and make their own. Seeding innovation through such client visits at Accenture’s Innovation Centers have shown startling results for clients and continues to be one of the key innovation entry points for Industry X.0. One of the most recent additions is the Detroit IIoT Innovation Center that was opened earlier this year.

Clients are highly encouraged to come visit one of the centers and experience how Accenture can truly help them in their digital transformation journey.

Industry X.0 is truly transformative and is one of the strategic areas of priority as Accenture aligns itself to client needs, demands and expectations. In the current era of digital industrialization, it is Accenture’s idea that sparks their interest; clients

structured, systematic, and outcome-

are encouraged to explore further. In

driven way of encouraging its clients

the subsequent session client leaders

to approach us with a problem or an

are taken through a very focused design

idea, and take away with them an

thinking workshop, organized at the

innovation that helps them accelerate

Innovation Center, that is facilitated by

to market and get into a position of

a highly trained and specialized team,

competitive differentiation.

and in which the areas of interest are

There is an ‘X factor’ in Accenture’s

aligned to their own business process-

Industry X.0. Come and experience it to

es. The outcome of such a few hours of

drive differentiation for your business.

high-octane workshops results in the ideation of the most innovative ideas that our client leaders get to take away w w w.busi ne ssc hief. com

243