Gigabit Magazine July 2018 by Technology Magazine

Deutsche Telekom – Embracing a new wave of digitisation www.gigabitmagazine.com

JULY 2018

Raben Group

Digital transformation at the €1bn logistics firm

YULIO

Disrupting the construction industry through VR

W I T H E XCL USI VE V IDEO

GIBBS HYBRID

THE ART OF TALENT MANAGEMENT IN TECH

TOP 10

Business intelligence companies

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FOREWORD

elcome to July’s issue of Gigabit! This month we are excited to bring you a huge range of insight from business leaders as well as the latest tech news from companies all over the world. Our cover story features an exclusive interview with Adyen’s Jussi Lindberg, who discusses how the company is pioneering the payments sector. We also caught up with Gibbs Hybrid, a supplier of technology for outsourcing and talent management which has made a real difference to businesses across the globe. We spoke to CEO and founder Farida Gibbs about the company’s current expansion into the US, and why customer centricity still remains paramount in any industry. Meanwhile, Yulio, which uses virtual reality in architecture and design, is making waves in the technology and construction spaces – CPO Ian Hall told us more. We’ve also brought you a list of the top 10 BI (business intelligence) technology vendors in the world as well as a handy guide to all the biggest tech events to look forward to in the coming months. Don’t forget to check out our company profiles bringing you all the latest digital disruption news from global names including GM, Oracle, Zimnat Group, Sun life Financial and Deutsche Telekom. We hope you enjoy this month’s issue and welcome your feedback as always on Twitter.

w w w. g i g a b i t m a g a z i n e . c o m

Events EUROPE ADYEN DEUTSCHE TELEKOM RABEN GROUP EVOBITS

MIDDLE EAST GM FDC UMNIAH EMITAC HEALTHCARE SOLUTIONS

p58

p50 Top 10 BI vendors

CANADA KONTRON ORACLE PLAINS MIDSTREAM CANADA

USA T5 DATA CENTERS

AFRICA ALEXANDER FORBES MOZABANCO ZIMNAT GROUP MTN SUDAN

p38 THE NEW AGE OF CONSTRUCTION AND ARCHITECTURAL DESIGN IS HERE â&#x20AC;&#x201C; THANKS TO VIRTUAL REALITY PLATFORM YULIO

ASIA SUN LIFE FINANCIAL THE MEDICAL CITY MERCEDES-BENZ

ANZ SYDNEY MOTORWAY CORPORATION

LATAM ORAZUL ENERGY

THE ART OF TALENT MANAGEMENT IN TECH

p22

ADYEN

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EUROPE

Adyen has witnessed exponential growth over the last four years and has recently launched its IPO in Amsterdam. Jussi Lindberg, SVP of Business Development in Northern Europe, tells us more WRITTEN BY

CATHERINE STURMAN

PRODUCED BY

JAMES PEPPER

w w w. g i g a b i t m a g a z i n e . c o m

ADYEN

he payment service provider (PSP) market is booming. Mass globalisation has led consumers to demand access to products and services

with the ability to pay across a number of different channels at the click of a button. Tackling the challenges that businesses experience within this space is Adyen. Partnering with a number of popular streaming services, such as Facebook, Spotify, Netflix, and more, its integrated platform enables payments to be undertaken through any channel and processed on a single platform. Such has been the relentlessness of the company’s growth, its processed volume growth has risen from €12bn ($14bn) on an annual basis to a stagger08

ing €108bn ($125bn) in 2017. Shares have also surged up to 90% upon the launch of its IPO in Europe. Four years previously, Senior Vice President of Business Development, Northern Europe, Jussi Lindberg, wanted to gain a greater understanding of how Adyen was setting itself apart from other payment providers. “When working at PayPal, Adyen was a partner that had the fastest growth ever when it came to the PSP space. I had to know what the secret sauce was. Why were they giving so much volume to us at PayPal? After working a bit more closely with Adyen I found the company was really something extraordinary,” he explains. “Adyen was building something more quickly than anybody else, but at the same time helping businesses globally scale in a different manner than anyone had been doing previously.” Shortly after, Lindberg joined the company in 2014. J U LY 2 0 1 8

EUROPE

‘What is Adyen?’ Jussi Lindberg, SVP of Business Development explains 09

OUTSTANDING COLLABORATION Working with businesses as a payments partner, Adyen seeks to collaborate with them to plan how they can successfully scale. “Businesses want to take the next future step to sell anywhere, at any time, via any channel to anyone globally. So, the world is shrinking,” says Lindberg. “We’re also seeing consolidation in the types of vendors. Beforehand, the payment space

Adyen helps maintain the balance between blocking fraudsters and approving genuine shoppers

was very fragmented, where you had one gateway or payment method per country that you had to contract. If merchants were selling in 40 different countries, that equates to 120 w w w. g i g a b i t m a g a z i n e . c o m

OMNICHANNEL. REDEFINED. Enable AfterPay and allow your consumers to pay frictionless in any touch point you want. One off transactions, consolidated or subscription based transactions, itâ&#x20AC;&#x2122;s all up to you. *The image above is a conceptual sketch.

WILL YOUR BRAND BE RUN OVER BY A SELF-DRIVEN CAR? How can a self-driving car affect my brand you might wonder? And it’s a valid question. The answer lies in how everything changes when we move from the driver’s seat to the passenger seat.

No. This level of experience effectively hides all transactions, invisible payments, and to some extent the service providers as well. That can sound pretty scary in a world where the biggest struggle is to not just be seen – but remembered.

Not like the commuting of today – with people going from one place to another with occasional stops in

There is a solution, though. Pay After Delivery, PAD.

between – but in an AI powered vehicle that is perfectly aware of your interests, schedule and needs.

What started as a consumer need driven by skepticism about online purchases, and then evolved to a pre-filled

“That can sound pretty scary in a world where the biggest struggle is to not just be seen – but remembered” Imagine an ordinary day, you leave your home and get into ‘your’ car. You sit down and get into prepping your day at the office, in the car that is fitted to support focused working. Then your car stops by Starbucks and rolls down your window. The staff hand you your freshly made morning coffee, just as you like it. The car rolls away as you finish off the last of your prep as you sip your coffee looking out the window. After work the car picks you up again. As you summarize the day the car quietly stops by the grocery store, and a bag with your home essentials is placed in the trunk. Finally, you are home, work done, shopping done and a nice evening with your family lies ahead.

mobile first conversion driver. Pay After Delivery is now entering its third phase of relevance thanks to its perfect fit for consolidating invisible payments and support for subscription based business models. In addition, it brings with it a new platform for merchants to promote brand awareness and loyalty: the post purchase experience. This gives you as a merchant extraordinary exposure to the consumers’ eye, where others are invisible. Whether it’s the coffee in your car, in a shop or your intelligent washing machine ordering a detergent refill, Pay After Delivery is a payment method that will increase in relevance the more your business addresses the omnichannel challenges. No expiring cards. No 3D Secure validation. No obstacles, and your brand stands out. Can you afford not to employ a PAD service?

Does it sound like science fiction? Really? Remember back in 2006 – before the iPhone was launched – if I had told you that the phone would be the most important platform for shopping…? Today major car companies are partnering up with merchants to provide all of the above and more. Business models are changing. Consolidation and Subscription is the name of the game. So what does this have to do with your brand? Well, did you note any passages saying “and then you leaned out the window to pay”?

Patrik Vikner Head of User Experience – AfterPay

ADYEN

“ When working at PayPal, Adyen was a partner that had the fastest growth ever when it came to the PSP space. I had to know what the secret sauce was” — JUSSI LINDBERG, Senior Vice President of Business Development, Northern Europe

different vendor relations, technical connections, and also reporting lines. “This is just not feasible as nobody

mentation,” he continues. “Whilst the world is getting smaller at one end, local initiatives offering

has the bandwidth to take this on, espe-

new ways to pay are continuing to pop

cially in the payment space,” he adds.

up. Today, I’m based in Sweden and,

“Companies want to be focusing on

for instance, have four or five payment

increasing net promoter scores; ensur-

methods that we have to integrate at

ing conversions go up and be more in

Adyen instead of our customers hav-

tune to what they are actually doing,

ing to do this.

which is taking care of customers

“New regulations are also coming up

instead of vendor relations. This is where

so the world is still fragmented, making

we’re seeing tremendous growth.

it important for us to be a partner where

“Thirdly, we are seeing something contradictory, which is more fragJ U LY 2 0 1 8

we have control and give the best advice to our customers and partners.”

trustly.com

Payments that know no borders Grow your business across Europe with the next generation of payments. Instant payments SimpliďŹ ed refunds Unrivalled coverage

Proud online banking payment partner of

ADYEN

“After working COMPLEX REGULATIONS a bit more closely with Adyen I found the company was really something extraordinary”

Building a new, state-of-the-art infrastructure, any type of transaction placed through Adyen’s platform is highly secure, but unusually, is not sent to a third party. Instead, the business sends this directly to the required payment method and receives an immediate response back. Through this, Adyen has gained improved authorisation rates against its competitors.

— JUSSI LINDBERG, Senior Vice President of Business Development, Northern Europe

“We can also process pay-

ments in store on the same, single platform. From a technical standpoint, our solution is quite

Adyen have partnered with streaming giants such as Spotify

complex but we’re making it easy on the customer and partner side,” explains Lindberg. Additionally, with General Data Protection Regulations (GDPR) coming into force across Europe, Lindberg explains that whilst the company is fully up and running and is set to adhere to the vast changes to traditional regulatory requirements, the business will remain challenged. “We are GDPR ready and will

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FACT

• Adyen has partnered with a number of popular streaming services, such as Facebook, Spotify and Netflix • Adyen’s integrated platform enables payments to be undertaken through a single platform. • Adyen’s processed volume growth has risen from €12bn

($14bn) on an annual basis to a staggering €108bn ($125bn) in 2017 • Shares have surged up to 90% upon the launch of its IPO in Europe • Adyen is backed by Index Ventures and Silicon Valley giant Iconiq Capital • Adyen has recently launched its IPO in the Netherlands

• Adyen offers every payment method available in China, such as WeChat Pay and Alipay outside of the country, in order to cater to its specific target audience • Adyen uses data and machine learning in its payment routing, optimising authorisation rates 15

take full responsibility on what is

we only have to do it once per region

put on us as a company at our

because we have a single platform.

end. Then, of course, it is up to

For them, they have to do it over

any company that we are also

and over again, which slows our

partnering with to do their part as

competition down.”

well,” he says. “We are also Payment Service

ENTERING NEW MARKETS

Directive 2 (PSD2) ready. If we are

Providing popular music juggernaut

talking about payments and what

Spotify with a payment processing

is happening in the payment space,

platform for its premiums business,

there are a lot of acquisitions, which

Adyen has fully supported the firm

also house multiple platforms to

to scale and enter new markets.

send payment data through.

With a number of different payment

“Whilst it’s trickier for competi-

details, varying music catalogues

tion to be PSD2 and GDPR ready,

and rights dependent on each counw w w. g i g a b i t m a g a z i n e . c o m

ADYEN

try in which it serves, Adyen has strived to ensure that premium users can only tap into the catalogues relating to the country where the card (and user) resides. The business also caters to companies which have complex regulations to deal with. China, for instance, is a particular focus and houses a unique payments market. With this in mind, Adyen offers several Chinese payment methods, such as WeChat Pay 16

and Alipay outside of the country, in order to cater to this specific target audience. “No business without a local or offer Chinese payment methods. Adyen and other payment vendors cannot sell or target Chinese companies. On the other hand, we can help Chinese companies that want to sell outside of China, such as in the US, with this payment method,” says Lindberg.

SUPPORTING COMPANIES TO SCALE Whilst more and more companies are wanting to be on top of their payment data, Adyen’s platform J U LY 2 0 1 8

EUROPE

create better, more personalised customer journeys such as click-and-collect, where customers can order something online and pick it up in store, or endless aisles, where in-store tablets let shoppers order items that are out of stock online while in store. A Unified Commerce approach allows retailers to reshape the purchase experience, making it frictionless. Adyen also aims to simplify and improve the payments experience on the merchant side.

Jussi Lindberg, Senior Vice President of Business Development at ADYEN on Market Pay

Adyen MarketPay, a solution for large marketplaces, simplifies the flow of payments, providing split payouts, easier reporting, driving a complete frictionless experience for both vendors and end-customers. “There is complexity with not only accepting

will provide a better payment

a payment, but sometimes splitting a payment

experience. Its technology has

between multiple sellers. With more than one

also worked to support retailers

vendor, transactions need to be split evenly, and

such as Daniel Wellington as well

sometimes sellers also have different commis-

as ride-hailing company Uber.

sion plans,” explains Lindberg.

Most importantly, delivering

“Before, transactions had to be initiated

simplification for its customers,

not only once, but twice to make sure that

particularly within the physical

this transactional split was happening.

point of sale (POS) space means

Today, we can completely automate this

that Adyen has a unique Unified

with our MarketPay API solution.”

Commerce offering. By having

Such solutions are therefore in significant

e-commerce and in-store pay-

demand for big consumer-driven companies

ments processed through one

such as Etsy or eBay, where payment systems

platform, companies are able to

are becoming increasingly complex. Whilst w w w. g i g a b i t m a g a z i n e . c o m

ADYEN

“We’re seeing consolidation in the types of vendors. Beforehand, the payment space was very fragmented, where you had one gateway or payment method per country that you had to contract. If merchants were selling in 40 different countries, that equates to 120 different vendor relations, technical connections, but also reporting lines” — JUSSI LINDBERG, Senior Vice President of Business Development, Northern Europe

J U LY 2 0 1 8

EUROPE

there might be multiple sellers in one trans-

BIO

action trying to sell an item purchased by

Jussi Lindberg is the SVP of Business Development Northern Europe at Adyen, the payments platform behind many of the world’s leading companies such as Uber, Netflix, Spotify and eBay. Jussi was previously responsible for partnerships and financial products at PayPal and Ebay, with over 15 years of experience of partnering with hundreds of companies to achieve growth and digital performance. Jussi holds a Master of Science in Business Administration and Economist from UMA.

a consumer, upon completion, merchants then submit the relevant consumer details. “This is unique to Adyen and that’s what’s really driving the market solution and appealing to merchants,” Lindberg says. “There’s no exclusivity, so we can replicate these solutions to other vendors.” Furthermore, to bolster its efforts to reduce potential risks, Adyen uses data and machine learning in its payment routing, optimising authorisation rates. “It’s not only a machine learning tool, it’s also how we interpret the different types of risks that we are associating with different types of transactions,” adds Lindberg. “With just one state-of-the-art platform, we can check transactions once, and then once it gets back from the payment team we also check it again. This supports enterprise merchants who want to be gathering more data and be cross-linking transactions that occur. “They can then detect patterns of crosslinking different multiple email accounts and different cards,” he continues. “If they’ve been associated with card washing, for example, in seconds we can see thousands of transactions with a stolen card number. We can efficiently block this,

w w w. g i g a b i t m a g a z i n e . c o m

ADYEN

but if we can also show this in a graphical way, this is something deeply appreciated.” Nonetheless, he adds that checking what could be a real transaction against ones which are fraudulent, remains a challenge. “It’s a tricky threshold, but as we’re partnering with our customers more closely we’re getting more insights. It’s about analysing all payment methods, not gathering them. We can have better risk tools and better risk analysis per country and per business vertical where they are selling.” 20

Partnering with some of the largest retailers and enterprise clients globally, Adyen has grown alongside its customers, becoming a key factor to their success. “We have great technology and we’re very

So, I think our journey is still just

fun to work with. From the start, we set out

beginning. Looking at the physi-

ambitious goals to solve global businesses’

cal point of sales space, there’s

needs to simplify any type of sales channel,

still so much to do and so many

wherever they might be present. We have

store initiatives that we are fortu-

gained extensive payment knowledge from

nate enough to be building out

different regions in every office where we’re

together with our customers. It’s

represented today and have local experts in

going to be really fun to see what

these areas,” concludes Lindberg.

the future brings.”

“We can provide so many payment methods in just one integration but the work is still not done. The world is not covered. There’s no need that is 100% fully met. J U LY 2 0 1 8

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2006

Year founded

668

Number of employees

Adyenâ&#x20AC;&#x2122;s Senior Vice President of Business Development on TRENDS in the Payment World

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D I G I TA L S T R AT E G Y

GIBBS HYBRID

THE ART OF TALENT MANAGEMENT IN TECH

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We spoke with Gibbs Hybrid Founder and CEO Farida Gibbs about how the talent management specialist is delivering innovation in outsourcing with customer centricity at the heart of efficient execution WRITTEN BY

DAN BRIGHTMORE

w w w. g i g a b i t m a g a z i n e . c o m

D I G I TA L S T R AT E G Y

arida Gibbs began her career

were in place seven days a week. Gibbs

path in a call centre. “What

worked around the clock sourcing

we used to call tele services

a diverse range of talent via recruitment

back in the day,” she remembers of

fairs and community engagement.

her time at Sitel, when heavily involved “I found myself helping single parents, in people management, recruitment

and the retired, back to part-time work,

and strategy setting for its European

along with people with disabilities who

call centre operation.

had previously experienced difficulties

It was working with people that excited finding work,” recalls Gibbs, who notes her the most, especially helping people

the job satisfaction she felt and the pas-

into work, as her remit was to coordinate

sion for people which propelled her

shift patterns ensuring hundreds of staff

towards a career in recruitment.

J U LY 2 0 1 8

In her experience many firms in the

values into how a recruitment company

recruitment industry were unethical

should be run,” affirms Gibbs who took

around commissions and contracts, so

niche opportunities from her client net-

Gibbs started thinking about how she

work to build her business. “Before

would do things differently if she had her I knew it I’d turned over £250,000 in the own company. Respect for others, hon-

first six months working from home.

esty and integrity were at the heart of

I knew then I could either make this a

those plans… In May 2005, armed with

lifestyle or build a sustainable business.”

a £2,000 redundancy cheque, she set

She opted for the latter, partnering with

up her business with an early focus on

her sister who took over delivery while

talent acquisition. “It was the opportu-

she focused on selling talent manage-

nity I had waited for – to embed my core

ment services to new clients.

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D I G I TA L S T R AT E G Y

Today, Gibbs Hybrid also partners with businesses to offer outsourcing as a service – to help them transform and deliver quantifiable improvements across a range of business processes, market mapping and talent acquisition. Aiming to develop visibility and add control with measurable, predictable and repeatable outsourcing service delivery, the Gibbs Hybrid offering focuses on three main principles: customer first, auto26

mation, and cost control across Shared Services, BPO and RPO Centre of Excellence. Allied to this, and building on its recruitment base, Gibbs branched out

she asserts. “Offering flexible options to con-

to deliver a new line of business

trol resource demand, project consultancy

for Gibbs Hybrid – technology

and delivery, our clients have consistently

consulting services. “Our Pro-

reduced their total cost of ownership by part-

gramme Technology Solutions

nering with us to determine through life

division is where we take on

resource requirements and successfully

more risk, and reward, on some

deliver the right talent, to the technology and

of the projects we deliver for our

change programmes, at the right time.”

clients across sectors with inno-

Gibbs Hybrid has traditionally been a peo-

vative statement of work

ple-based business using third party

solutions that can meet the

technology solutions off the shelf. However,

needs of your technology and

during the company’s footprint expansion

business enabled programmes,”

Gibbs has found this approach is becoming

J U LY 2 0 1 8

“ I REALLY WANT TO SEE MORE BUSINESSES TAKING THAT LEAP OF FAITH WITH MID-MARKET COMPANIES AND SMES LIKE OURS. MOST OF THE INNOVATION COMES FROM THESE MORE AGILE COMPANIES WHO ARE NOT SUPPRESSED BY RED TAPE” — Farida Gibbs, Founder and CEO, Gibbs Hybrid

more expensive and complex. “There are a lot of vendor takeovers in this space which has an impact on us. I’ve reacted to this by appointing a head of technology and product enablement to lead our innovation, examine where the gaps are in the business and build our roadmap to 2020 (driven by automation and the need to become more operationally efficient), and discover where we want to be by 2025 and what w w w. g i g a b i t m a g a z i n e . c o m

D I G I TA L S T R AT E G Y

we need to achieve to get there. We need to look at how we can integrate better with the suites of technology used by our customers.” How do they do that? “We’re building our own innovative solutions and technology platforms to promote integration and work smarter with our customers. To that end we’ve created BUDI (Business platform for Uniform Development and Integration) to improve our clients’ capability with process integration and automation from both cloud and onpremise. We’re delivering bespoke solutions based on listening to customer problems.” Gibbs explains the approach to a pilot 28

scheme where the company looked at a client’s current position and pledged to replicate that, but actually be more efficient with just nine people when using the BUDI tool. “It delivered cost savings, drove greater tech innovation and increased technological efficiencies,” she adds. “We’re keen to build on that with Gig BUDI to bring talent to the customer rather than going via a third party. People might think it could put us out of business but we’ve got to innovate or someone else will. We believe tech won’t kill the recruitment industry, it’s going to improve it, bringing the talent and the gig economy straight to the customer. Businesses are questioning why they use all of these agencies and looking at ways to attract talent J U LY 2 0 1 8

Click to watch ‘Welcome to Gibbs Hybrid – how can we collaborate?’ w w w. g i g a b i t m a g a z i n e . c o m

D I G I TA L S T R AT E G Y

directly to their brand – stripping

in the industry, allowing more agile firms like

out third party suppliers is a big

hers to compete with the likes of Manpower,

thing right now so we see the

Adecco, Capita and Cognizant. Gibbs admits

opportunity for Gig BUDI to

her biggest challenges still lie with what she

become part of a company’s

calls the ‘David and Goliath syndrome’,

toolkit. It can also offer flexibility

where prospective customers may feel safer

for the talent out there looking for

working with a bigger brand. “Helping us

new ways to keep in touch with

overcome this, I’ve had customers that have

brands about job opportunities.

taken a leap of faith and believe in what we

It’s about people, processes and

do and what we can deliver. The whole diver-

technology. I like to think we would

sity aspect has been a big door opener for

be selected by businesses for who

me in terms of Gibbs Hybrid being a woman-

we are and what we believe in –

owned, ethnic minority-owned business.

fundamentally we’re about putting

Big corporates are starting to understand the

people into work and achieving

relevance of having a diverse supply chain.

good things in our communities.”

Sometimes you can explain the values and

It's a bespoke approach to

benefits until you’re blue in the face, but the

providing solutions based on

risk element can’t be overcome and it’s eas-

customer feedback which Gibbs

ier for them to sign up with Accenture, and

believes reflects a growing trend

pay a lot more for that reassurance factor.

J U LY 2 0 1 8

I really want to see more businesses taking

“We’re working to help them on-

that leap of faith with mid-market companies

board innovative and nimble

and SMEs like ours. Most of the innovation

companies that may not have the

comes from these more agile companies

business background, but have

who are not suppressed by red tape.”

a product they want.” Gibbs

Gibbs reveals she’s working with a client in

highlights a client in the tech

fintech who wants to support small compa-

space that found two teenage

nies before their competitors find them.

brothers working out of a shed in

“ WE’RE BUILDING OWN INNOVATIVE SOLUTIONS AND TECHNOLOGY PLATFORMS TO PROMOTE INTEGRATION AND WORK SMARTER WITH OUR CUSTOMERS. TO THAT END WE’VE CREATED BUDI (BUSINESS PLATFORM FOR UNIFORM DEVELOPMENT AND INTEGRATION) TO IMPROVE OUR CLIENTS’ CAPABILITY WITH PROCESS INTEGRATION AND AUTOMATION FROM BOTH CLOUD AND ON-PREMISE” — Farida Gibbs, Founder and CEO, Gibbs Hybrid

w w w. g i g a b i t m a g a z i n e . c o m

D I G I TA L S T R AT E G Y

Slovenia who developed an API payment system that can revolutionise the way payments are made… “These guys are very passionate for tech, but how are they going to understand a 78-page MSA that covers legal requirements? We can help give them short-form contracts, educate and support them through that on-boarding process. When they hit a reasonable revenue, they’ll move on to a different contract. As a single 32

source supplier, we can do talent, technology and strategic counselling as part of our hybrid approach.” Gibbs maintains corporations are looking for new ways to compete and operate in an ever-changing, dynamic environment. “Many of the larger firms struggle with legacies – legacy software, legacy structures and legacy business methods. All of the strategies that served them well for years or even decades are now under scrutiny. Slowly in some cases, radically in others, sacred cows are being jettisoned.” J U LY 2 0 1 8

This flexible hybrid approach has seen Gibbs take on the goliaths, and win. Three years ago, the company won Tier 1 contracts worth over $35m with the world’s largest technology services company. Building on its previous Tier 2 association, Gibbs was able to put the company on a level playing field. “It’s a testament to how far we’ve come and a game changer for us. If we can do it for them, we can do it for anybody. It’s opened the eyes of other big corporates to show our capabilities.” These capabilities are in demand. In the past six months, with Brexit looming, some of Gibbs Hybrid’s customers are moving operations out of the UK to key locations around Europe. “It made perfect sense to scale up quickly to support them,” says Gibbs. “We’ve established a presence in seven new markets in the past 12 months. Lots of companies have pain points with Brexit even though we don’t know yet what the real implications will be. It’s important to make smart decisions now to prepare for what happens beyond the uncertainty. To stay relevant, we need to make customerlead business decisions to remain sustainable. For example, we’re now in Luxembourg because our customers want us to be there. Replicating our UK model in new regions has been key to our expansion w w w. g i g a b i t m a g a z i n e . c o m

D I G I TA L S T R AT E G Y

in Dublin, Poland and the US.

Hybrid in North America, as our three-pillar

Now we’re being asked to

model enables companies to address their

deliver this model to the APAC

key concerns when it comes to digitally

region, India and Singapore.”

transforming. This can be anything from

Gibbs Hybrid recently posted $102mn in European revenues,

ance with legislation and battling against

achieving a year-on-year

evolving security concerns.”

increase of 29% in 2017. “Focus-

improving operational efficiencies, compli-

Gibbs believes working with SMEs has

ing on expansion in North

another major benefit allowing her com-

America, we’re passionate about

pany to remove barriers to innovation and

replicating what we’ve achieved

gain competitive advantage for her clients:

in the UK,” says Gibbs, who

“The CEO is not some faceless person in

expects her company to reach

a far off ‘corporate office’ – it’s me. I – and

$50mn revenue across the pond

all the other CEOs of small and growing

within two years. “The US is

businesses – care deeply and profoundly

highly concentrated with staff

about the people who work for me and the

augmentation companies but

companies who have chosen to trust me

we’re bringing something differ-

with their business. This kind of authentic-

ent as a solutions provider, which

ity and connection can’t be faked. We

our customers in the US are pas-

don’t operate like a conveyor belt, shuf-

sionate about. Our project

fling through people and clients like

management as a service

so many packages; we treat each client,

(PMaaS) solution is already

each staff member, as an individual. The

sparking a lot of interest (in par-

client has access to the top decision

ticular from a financial services

maker always, not some corporate VP:

company and a pharmaceuticals

I respond, I empower decisions, I facili-

vendor) because it can provide

tate. Because in the end, while we don’t

a single platform for project man-

want to be the biggest company to serve

agement across vendors, rate

our industry, we want to be respected and

cards and skillsets. It’s a huge

valued for what we do. What corporate

growth opportunity for Gibbs

vice-president could say that?”

J U LY 2 0 1 8

“ IT’S A HUGE GROWTH OPPORTUNITY FOR GIBBS HYBRID IN NORTH AMERICA, AS OUR THREE-PILLAR MODEL ENABLES COMPANIES TO ADDRESS THEIR KEY CONCERNS WHEN IT COMES TO DIGITALLY TRANSFORMING. THIS CAN BE ANYTHING FROM IMPROVING OPERATIONAL EFFICIENCIES, COMPLIANCE WITH LEGISLATION AND BATTLING AGAINST EVOLVING SECURITY CONCERNS” — Farida Gibbs, Founder and CEO, Gibbs Hybrid

w w w. g i g a b i t m a g a z i n e . c o m

17-18 September 2018 Abu Dhabi, UAE

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www.digitaltransformationabudhabi.com www.digitaltransformationuae.com Advanced Conferences and Meetings FZ-LLC | T: +971 4 563 1555 I F: +971 4 422 7548 I E: opportunities@acm-events.com

D I G I TA L D I S R U P T I O N

THE NEW AGE OF CONSTRUCTION AND ARCHITECTURAL DESIGN IS HERE – THANKS TO VIRTUAL REALITY PLATFORM YULIO Yulio allows for key decision makers on construction projects to insert themselves within the design at critical points in the decision-making process — Gigabit speaks to the company’s CPO to find out more… WRITTEN BY

STUART HODGE

J U LY 2 0 1 8

D I G I TA L D I S R U P T I O N

harles Dickens once said: “The whole difference between construction and creation is exactly this: that a thing constructed can only

be loved after it is constructed, but a thing created is loved before it exists.” But what if a technology solution emerged which allows for the middle ground between both to be explored? Well, that’s exactly what Yulio provides. Yulio offers architects a DIY virtual reality (VR) platform. The technology, developed by a Canadian team, enables 3D designs to be instantly turned into living, breathing, tourable virtual reality experiences. The platform has already been adopted by a number of J U LY 2 0 1 8

notable construction firms and archi-

adopt technological trends and

tects from across the globe and it

advancements and Yulio’s Chief Prod-

allows them to communicate and dem-

uct Officer, Ian Hall, is in no doubt that

onstrate new building designs to clients,

this product will go on to have a pro-

simply by providing them with a VR

found impact on the construction

headset. They can then immerse them-

industry as a whole.

selves in a new building before

“This is a fairly conservative industry in

construction even starts and tour

general,” says Hall. “But there’s been

through each room, making key design

this realisation that there is no such thing

decisions based on experiencing the

as a successful company today that isn’t

full structure around them.

also a technology company. We’ve got

It’s an important move forward within an industry which is sometimes slow to

some of the largest construction companies, certainly in North America, using w w w. g i g a b i t m a g a z i n e . c o m

D I G I TA L D I S R U P T I O N

our products and they’re using it

assurance. Does it look like it

in their design area.

looks in the CAD?

“And when you speak with their

“So, with all of that in mind and

visualisation leads, they’re pretty

the fact Yulio essentially allows for

frank. Competitive differentiation

all of this, I think this is essentially

is: can you get your ideas across

a billion-dollar transformative

better, more efficiently? And, if

technology for this industry.”

you start really looking at the root

That’s a bold proclamation, but

ROI behind all of this, can you get

things certainly seem to be head-

your designs to market faster?

ing in the right direction for the

Can you get them to market more

team at Yulio. To date, it has deliv-

accurately? Are you gonna be

ered around 250,000 unique

able to remove ambiguity, basi-

virtual reality experiences on

cally so that when somebody

behalf of customers and that

responsible for the actual con-

number is continuing to grow at

struction is experiencing it in

a steady pace.

virtual reality there is no ambiguity about what they are to build?

Hall is convinced that one of the key reasons for this continued

“And then after it’s built, there’s

growth is the discipline the com-

no ambiguity around quality

pany has shown, in terms of

“I THINK THIS IS ESSENTIALLY A BILLION DOLLAR TRANSFORMATIVE TECHNOLOGY FOR THIS INDUSTRY” —

Ian Hall, Yulio’s Chief Product Officer

J U LY 2 0 1 8

maintaining focus on its end goal without becoming too distracted by fashionable trends and industry developments along the way. “There’s been always that temptation to kind of go down

Click to watch ‘Yulio VR – CanBim 2017’

and do the next sexy thing in the space,” he says. “‘Hey, we’re gonna do AR before it’s really ready for business’, and we’ve resisted that. ‘Let’s do tethered, let’s do complex HTC Vive full room breaks, because it’s really sexy when you video it’. “It is sexy when you video it but you can maybe do one of those every few months because it’s so cost-prohibitive, whereas our approach has been very pragmatic. “I think what that’s done, is it’s positioned us as a partner w w w. g i g a b i t m a g a z i n e . c o m

D I G I TA L D I S R U P T I O N

that delivers value not hype. So

needle to thread. That’s what

yes, there are a lot of competi-

we focused on.”

tors coming in and they’re going

And what Yulio now has is a

down similar paths that we went

situation where it has a growing

down in the early stages.

customer base and a platform

They’re kind of focusing on the

which is gaining both notoriety

‘big shiny bauble’. Whereas

within the marketplace and

we’ve paid our dues, we’ve done

respect within the industry.

the field research, and we’ve

The company has also entered

spent upwards of a thousand

into a partnership with Ryerson

hours of usability testing, in

Architectural College in Toronto

terms of human factors

where the students get to use

designed for both the content

the platform during their studies,

creation and the consumption

and Hall says seeing the next

of this stuff.”

generation engaging with Yulio

And what is the byproduct

in a manner that he describes

of those hours spent refining

as “unintimidated” gives him

the platform?

the belief that the future of

“Getting it simple enough that

architecture, and construction

a 50-year-old CEO of a major

and design in general, is in

corporation deciding whether to

good hands.

spend a few million dollars on

He is also adamant that the

this floor plate can go in there,

time for people to be investing in

without feeling intimidated, and

the product is now, if they wish

not feel cut off from their peers

to avoid being left behind.

when they’re looking at this

“You’re going to see an expo-

stuff in this technology,” Hall

nential adoption of this because

adds. “That is a very tough

it works,” says Hall, simply.

J U LY 2 0 1 8

“OUR APPROACH HAS BEEN VERY PRAGMATIC. I THINK WHAT THAT’S DONE, IS IT’S POSITIONED US AS A PARTNER THAT DELIVERS VALUE NOT HYPE” —

Ian Hall, Yulio’s Chief Product Officer

w w w. g i g a b i t m a g a z i n e . c o m

D I G I TA L D I S R U P T I O N

“The ROI is starting to become self-evident. “For those people that have adopted and embraced it, the first time that you’re presenting something in VR and your competitor isn’t and you win the deal and they don’t; or the first time that you have an insight where

—

you shared a design element

Ian Hall, Yulio’s Chief Product Officer

with a peer and they noticed something that the two of you hadn’t noticed whilst looking at 46

“ YOU’RE GOING TO SEE AN EXPONENTIAL ADOPTION OF THIS BECAUSE IT WORKS. THE ROI IS STARTING TO BECOME SELF-EVIDENT”

the floor plan and the CAD models – any moment that you kind of make an adaptation due to this visualisation technology giving you a different perspective, those are the moments that the hook is set. “I think what’s going to happen is, as more companies experiment with this, you’re just going to start to see it become broadly adopted. “It poses challenges. The IT department in these companies are already pretty overloaded. A lot of people are saying ‘we’re

J U LY 2 0 1 8

sitting by the sidelines until the dust settles and then we’re going to jump on whoever the winning vendor, or whatever winning technology is’. Late adopters, they’re always going to be out there. “The really smart guys, though, what they’re saying is ‘this is not something where we want to be late to the game’. The survivors of the next five-to-10 years of innovation will be the ones that embrace this technology, that have figured out how to get commercial advantage out of it, and that have made it part of their DNA. “It cannot be something they bolt on after the fact, five years later, after everybody else has figured it out. If you’re coming to the game late, I think you’re putting your business at serious risk.”

w w w. g i g a b i t m a g a z i n e . c o m

December Dubai, United A ABOUT HITEC Hospitality Industry Technology Exposition and Conference (HITEC®) is the world’s largest hospitality technology exposition and conference brand. HITEC Dubai 2018, co-produced by Hospitality Financial and Technology Professionals (HFTP®) and Naseba, will feature 30+ speakers, 500+ hospitality stakeholders and 50+ solution and service providers. The show will give Middle East buyers currently worth over USD 75 billion, access to global top solution providers in hospitality market, through a top-notch education program planned by the expert HITEC Dubai Advisory Council, as well as an exhibition debuting the latest in hospitality technology, and a summit with one-to-one business meetings.

Ho Stak

www.hitec.org/dubai Amir Abdin | Marketing Manager | amirabdin@naseba.com | +97144557920

r 5-6, 2018 Arab Emirates

500+

ospitality keholders

40+

30+

Solution and service providers

Industry expert Speakers

T O P 10

J U LY 2 0 1 8

Top 10 BI vendors THIS LIST EXAMINES THE WORLDâ&#x20AC;&#x2122;S TOP TEN BUSINESS INTELLIGENCE COMPANIES, ACCORDING TO PREDICTIVE ANALYTICS TODAY (PAT), STRIVING TO CORNER A MARKET PREDICTED TO BE WORTH $84.47BN BY 2025. W RI T T E N BY

HARRY MENE AR

w w w. g i g a b i t m a g a z i n e . c o m

T O P 10

09 PROGNOZ www.prognoz.com Based in Perm, Russia, Prognoz is “an

10 BITAM

international software vendor delivering advanced analytics and visual discover solutions”, according to the company site. The company focuses

www.bitam.com

on complete integration of its analytics

Located in Roswell, Virginia, Bitam

software to provide fully-customisable

provides business intelligence prod-

reports to the end-user. According to

ucts and services to organisations

Betterbuys, Prognoz excels due to its

worldwide. The company’s products

“unique library of modelling tools, 3D

include Artus, an integrated BI plat-

visualisations,” which are delivered to

form intended to provide ease of

the client in easily digestible formats.

access to analytics and predictive

Making user-customisation available

models that improve decision making.

and simple does mean an absence of

Bitam also provides Ektos, a financial

24-hour customer support services

planning package, Stratego, a plan-

from the Prognoz package.

ning suite that allows enterprise performance to be compared to corporate goals, and Advisor, an alerts and notifications system, according to Bloomberg. Although the company has over 1000 clients in its portfolio, including Black & Decker, Coca Cola, and Home Depot, Bitam is still relatively unknown in the US, but growing in terms of market share year-overyear, according to Betterbuys. J U LY 2 0 1 8

07 TARGIT www.targit.com/en Danish business intelligence provider, Targit is based in Hjørring, along with subsidiary company Targit, US Inc. and provides its suite of BI products to customers worldwide, including management staff at Mercedes-Benz, according to BITool. The company’s

08 BIRST

flagship product, Momentum, is designed to provide customised data analysis and parsing solutions to suit the needs of its customers, with a

www.birst.com

focus on shrinking large data sets by

San Francisco business intelligence

identifying key information and elimi-

company, Birst, emphasises cloud-

nating unnecessary traffic. Targit does

based, multi-tenant system, for data

this through its partnerships with

processing, delivered to the end-user

industry-leading consultants, broker-

via adaptable data-consumption plat-

ing partnerships to aid companies in

forms. According to Cision’s report of

extracting maximum efficiency from

the Gartner Critical Capabilities for

the company’s software.

Analytics and Business Intelligence Platforms report, 2018 marked “the second consecutive year that Birst has received the highest score for the OEM or Embedded BI use case and the third consecutive year that it has received the highest score for the Extranet Deployment use case”. w w w. g i g a b i t m a g a z i n e . c o m

T O P 10

05 LOGI ANALYTICS www.logianalytics.com With headquarters in Mclean, Virginia, Logi Analytics embraces business strategy author Wayne Eckerson’s

06 PENTAHO 54

ethos, that “the best BI is invisible”. Logi’s business intelligence software platform is geared towards seamless integration with “development lan-

www.hitachivantara.com

guages, technology frameworks,

Based in Orlando, Florida, Pentaho

security, and skills that are already in

provides a unique software product

place”, according to the company site.

that emphasises the growing need for

Additionally, the company’s flagship BI

rapid results in the developing BI mar-

suite, Logi Elements boasts a fully-

ket. According to Betterbuys, “Pentaho

customisable UI to improve end-user

distinguishes itself in its unique ability

engagement and preserve customer

to combine data integration with ana-

branding. Betterbuys recommends

lytical processing, which saves users

Logi to companies looking for an inex-

both money and time”. Pentaho’s soft-

pensive and rapid ROI.

ware is also geared towards mobile and tablet integration, and “allows users to combine their data with Amazon Redshift and Cloudera Impala”, further improving the suite’s analytical capabilities. The software package recently experienced a large update that improves data-visualization and is now available in available in German, French, and Japanese. J U LY 2 0 1 8

03 SISENSE www.sisense.com Sisense is jointly based in New York, NY, and Tel Aviv, and is boasting some of the most innovative hardware in the increasingly-agile BI market. The company’s in-house innovation InChip technology utilises CPU areas of microchips (in addition to Disk and

04 DOMO

RAM) in order to process data “ten times faster” than in-memory parsing. The company is also bringing innovations from the developing IoT,

www.domo.com

machine learning, and AI into its BI

With head offices in American Fork,

solutions products. “Sisense won an

Utah, Domo’s business intelligence

award at Strata conference for

products are regularly described as

crunching 10 TB of data on a less than

falling behind Tableau in ease-of-

a 10K computer all in 10 seconds.”

use, and Microsoft for cost. However, according to InfoWorld, Domo “stands out with support for lots of data sources and lots of chart types, and the integrated social media feature”. The company’s software effectively combines an ETL system with a unified data store and “a large selection of visualisations”, making it a tempting midpoint between price and performance. w w w. g i g a b i t m a g a z i n e . c o m

T O P 10

02 TABLEAU SOFTWARE www.tableau.com The industry-leading BI software for its ease of use is widely agreed to be made by Seattle, WA-based company Tableau Software. With its analytics interface powered by the company’s own VizQL technology, Tableau was described by ITPro as having “more sophisticated visualisation tools and deeper controls” (than Microsoft’s competitor product). After switching company-wide to Tableu’s business intelligence analytics platform in 2016, German airline Lufthansa reported an efficiency in report-processing and logistics management of 30% in a single year. J U LY 2 0 1 8

01 MICROSOFT www.microsoft.com Microsoft’s software stack Power BI leads the PAT list with a combination of robust analytical capabilities, wide-ranging data support (including MySQL, SAP HANA, JSON, and more), and affordable pricing. Power BI users “can create personalised dashboards with a unique, 360-degree view of their business.” The most-recent large update to Power BI features the Power BI Report Server, which provides a platform for creating and managing company reports inhouse, through local servers, as opposed to the previously unavoidable cloud storage. ITPro’s report in 2017 concluded that: “If you’re looking for a general-purpose business intelligence platform, Power BI is almost certainly your best bet.” w w w. g i g a b i t m a g a z i n e . c o m

EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY ANDREW WOODS from around the world

05—06 SEPTEMBER

Digital Marketing & Strategy Innovation Summit

[ SHANGHAI MARRIOTT HOTEL ]

22—23 AUGUST

125 attendees of which

Digital Summit

85% have turnovers of

[ MINNEAPOLIS, USA ]

$50mn-plus, with 95% of

50-plus in-depth sessions and workshops will not

attendees at director level

only help you stay ahead of the latest digital trends

or above, this is summit

but also provide you with tons practical, game-

is heralded as one of the

changing takeaways you can immediately apply to

world’s most influential

your marketing strategy. Learn directly from the

digital meet-ups. This year

brands and thought leaders who are making the big-

will see guest speakers from

gest impact on the world’s economy – now and into

Tencent, Alibab, Bayer and

the future. Get under the hood and stay ahead of

Ted sharing their insights.

the strategic curve with Airbnb, Google, BuzzFeed,

theinnovationenterprise.com

The Onion, Minnesota Vikings, and more. minneapolis.digitalsummit.com J U LY 2 0 1 8

19â&#x20AC;&#x201D;20 SEPTEMBER

Chief Data & Analytics Officer, Europe 2018 [ FRANKFURT, GERMANY ]

Revolutionise your data strategy, align business goals and look to the future of data analytics atÂ Chief Data and Analytics Officer, Europe 2018. Taking place in Frankfurt, Germany 19-20 September the event will explore how you as a data and analytics leader can deliver on insight-led decision making and drive innovation within your business. Presented in a series of keynotes, panel discussions and our unique discussion group formats we will be exploring strategies and approaches for delivering actionable insights and embedding the importance of governance and data quality enterprise-wide. coriniumintelligence.com/cdaoeurope

w w w. g i g a b i t m a g a z i n e . c o m

EVENTS & A S S O C I AT I O N S

15—17 OCTOBER

SaaStock 2018 [ DUBLIN, IRELAND ]

Gather in Ireland for the best news and advice from experts in the flourishing SaaS market as it stands today. Learn how to build up a SaaS business from real software entrepreneurs. Optimise your business for the highest monthly recurring revenue and the lowest costs. Gain knowledge from people who have already made the mistakes and the losses so you don’t have to. Collate cutting-edge technologies and hacks to automate processes that cost valuable time and resources. Hear how to create a need for your subscription-based product and market it to targeted audiences. SaaStock aims to be a “one-for-all” event where marketers, developers, and CEOs can get together to figure out the intricacies of and establish best practices for emergent features of the SaaS ecosystem. www.saastock.com

J U LY 2 0 1 8

Government, Banking, Payments and Fintech, and more. Boasting over 3,000 delegates, 100 speakers and 150 sponsors and exhibitors, the Malta Blockchain Summit promises to be an innovative and momentous opportunity for global influencers to network, forge new connections and debate the potential applications of blockchain across a myriad of industries such as health, entertainment, government, and bank-

01—02 NOVEMBER

Malta Blockchain Summit

ing. The summit is comprised of four conferences covering the field’s government and regulation, marketing and

[ INTERCONTINENTAL MALTA, ST GEORGE’S BAY, ST JULIANS ]

affiliation, fintech, tokenomics and

Malta Blockchain Summit is a melting

developers, as well as a hackathon.

pot for global influencers in technology,

Confirmed speakers include: Carla

civil society, democracy promotion and

Maree Vella, Eva Kaili, James Catania,

innovation. Expect riveting discussion

Max Krupyshev, Gordon Einstein, Alex

about the world-changing potential

Lightman, Joseph Cuschieri, Sally

applications of the Blockchain across

Eaves, Tugce Ergul, Karl Schranz, Pavel

multiple verticals, including, but not lim-

Kravchenko and Vince Vella.

ited to Health, Entertainment,

maltablockchainsummit.com

cryptocurrencies, and blockchain for

w w w. g i g a b i t m a g a z i n e . c o m

EVENTS & A S S O C I AT I O N S

05—08 NOVEMBER

SaaS Monster [ LISBON, PORTUGAL ]

SaaS Monster is the world’s largest SaaS conference, connecting more 62

29—29 NOVEMBER

than 10,000 CIOs and

SaaS North

CTOs, buyers and sellers,

[ SHAW CENTRE, OTTAWA, CANADA ]

experts and investors,

2018 marks the third year of this premier event and

startups and established

we’re excited to bring the best in SaaS back to the

companies. SaaS Mon-

Shaw Centre in Ottawa. This year’s programme, speak-

ster has a reputation for

ers and networking opportunities promise to connect

bringing together SaaS

you with the best opportunities to grow, learn and meet

giants. With 10,000 CIOs

funders, founders and executives. SaaS North is

and CTOs, experts and

known for bringing together world class SaaS leaders

investors, start-ups, and

to connect and learn. With over 1,500 attendees from

established companies, it

over 500 companies, across startups, global brands,

is a great event to net-

investors and service providers all specialising in SaaS.

work and get inspired for

It is a great event to network, learn from the best in the

the upcoming year.

industry and get inspired for the upcoming year.

websummit.com

saasnorth.com

J U LY 2 0 1 8

05—06 DECEMBER

HITEC Dubai 2018 [ MADINAT JUMEIRAH ]

Hospitality Industry Technology Exposition and Conference (HITEC®) is the world’s largest hospitality technology exposition and conference brand. HITEC Dubai 2018, co-produced by Hospitality Financial and Technology Professionals (HFTP®) and Naseba, will feature 30-plus speakers, 500-plus hospitality stakeholders and 50-plus solution and service providers. The show will give Middle East buyers currently worth over $75bn, access to global top solution providers in hospitality market, through a top-notch education program planned by the expert HITEC Dubai Advisory Council, as well as an exhibition debuting the latest in hospitality technology, and a summit with one-to-one business meetings. www.hitec-dubai.com

w w w. g i g a b i t m a g a z i n e . c o m

Deutsche

Telekom Where innovation

is mission critica

J U LY 2 0 1 8

WRITTEN BY

LAURA MULLAN PRODUCED BY

JAMES PEPPER

DEUTSCHE TELEKOM

Embarking on a digital journey to foster innovation, Deutsche Telekom is set to remain as Europe’s leading telecom operator aving established itself as one of the world’s leading telecommunication companies, Deutsche Telekom is set to ink a new chapter in its story as it embraces a new wave of digitisation. No mean task, Dr. Kai-Ulrich Deissner, with his responsibilities as Chief Financial Officer of the newly found Board Area Technology & Innovation under Claudia Nemat, Board member Technology & Innovation, has a meaningful impact on this transformation. Deissner is what they call in German a “colourful dog”. Not your usual finance officer, he has worked in many parts of the value chain and in three regions across Europe; product marketing, many years of

J U LY 2 0 1 8

sales and process engineering in the local German business, as well as several CFO roles mark his 14-year long career for Deutsche Telekom. This diverse background extends to his private life: Deissner is as passionate about his job as he is about gaming (he is a level 40 PokemonGo player) and long-distance running. He was initially trained as a journalist and studied American poetry at Cambridge university, before making his first professional steps in the dot-com bubble of the early 2000s. “And where is the money – this was the leading question when the bubble burst”, he looks back, “and this is what has been guiding my professional behaviour ever since.” Bringing both operational and financial experience to the fore,

EUROPE

“ We strategically see ourselves as the leading European telecom” — Kai-Ulrich Deissner Chief Financial Officer Technology

Deissner says that today digitisation is critical for the success of the company. “Digitisation is inevitable. It will happen anyways, so it’s better to take it in your own hands rather than let it happen to you,” Deissner observes. “Any market player out there will tell you that digitisation is mission critical. You need to become faster and quicker w w w. g i g a b i t m a g a z i n e . c o m

The best of a now in y

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DEUTSCHE TELEKOM

“ Changing our network from traditional copper to fibre is a strategic investment for the future” — Kai-Ulrich Deissner Chief Financial Officer Technology

and more innovative to remain competitive by enabling accelerated digitisation for better customer experience.” Deutsche Telekom’s commitment to digitisation is most visibly manifested

requires convergent networks

by the fact that it created a new board

that speak a single language: IP.

area called Technology and Innovation,

Especially Claudia Nemat’s team

clearly signalling the self-conception

is driving this convergence of

and importance of technological inge-

technology, IT and innovation at

nuity for the organisation.

Deutsche Telekom. This will

Convergence – the bundling of differ-

make the company faster and

ent network, communication and IT

more efficient. Convergence

technologies – was one of the major

allows to overcome technical

steps into digitisation. Customers want

limitations, making new, innova-

to be able to access their data quickly,

tive services possible.

anywhere and at any time. This J U LY 2 0 1 8

Deissner explains that, as

EUROPE

more rapid technological

strengthen innovation, to make it much

advancements have entered the

quicker and to deliver what we promise.”

fray, the borders between net-

Being fully committed to its technology

work technologies and

leadership attaining innovation leadership in

information technology are

networks and 5G, Deutsche Telekom recog-

quickly receding.

nises that its core asset is its leadership in 5G

“Historically separate divisions

and lightning-fast network. As the fundamen-

such as network technology (NT)

tal basis for this, the company is currently

and information technology (IT)

undergoing “a network modernisation of his-

are now converging as technol-

torical scale,” Deissner stresses. With his

ogy develops. Classical network

long-distance running experience, Deissner

technology and IT grow stronger

knows that in order to undergo this radical

together. Software Defined Net-

transformation, you need a long breath and

works are on the forefront,” he

endurance.

says. “To acknowledge that,

On top of this, the organisation is driving

we’ve combined network tech-

network expansion in Germany faster than

nology and information

any other company. Recently, just under 300

technology into one area to

new mobile base stations went into service in the region. In 2017, the company also installed 40,000 km of optical fibre in Germany alone, more than the entire length of the federal road network in the country. To prepare for the rollout of 5G, Deissner says that Deutsche Telekom is overhauling its

w w w. g i g a b i t m a g a z i n e . c o m

DEUTSCHE TELEKOM

network to keep hold of its top-class

you actually see something on

position. “We strategically see our-

the street. With new technolo-

selves as the leading European

gies, we can accelerate this

telecom and, with that in mind, it is vital

process immensely, making us

that we keep our network updated,”

more efficient and decreasing

says Deissner.

our time to market.”

“Changing our network from tradi-

Digital transformations can

tional copper to fibre is a strategic

rack up huge expenses. At

investment for the future. For us it is

Deutsche Telekom, instead of

very clear if you want to be a leading

just looking at the amount that

European telecom, your core asset is

the company is investing, man-

your network, and that’s what you need

agement discussions centre on

to modernise and to keep it on top and

the impact on the top line and

innovate in the future.”

more and more on customer

New technologies certainly accelerate this network expansion.

experience. “Expanding our technology

“Traditionally, any new network is rolled

leadership is exactly the right

out in a detailed way taking many dif-

impetus for delivering the tech-

ferent steps and a long time,” he

nology and network innovations

continues. “It can take months before

that the digital transformation

J U LY 2 0 1 8

EUROPE

needs. How well or poorly we deliver these

explains Deissner. “To

technology and network innovations will also

establish a unit that is

determine our bottom line, and thus the suc-

faster, more innovative,

cess of our company,” Claudia Nemat, Board

and more convergent, we

member Technology & Innovation, stressed

decided that we not only

as part of the Capital Markets Day in May

need to focus on how

2018.

much money we invest, but

Whilst this is a concept often adhered to in

also on what we get for

theory, Deissner is ensuring that it becomes

that. Often a complex task

an ingrained everyday practice so that

to do...”

Deutsche Telekom can forward its position in the market. “Traditionally, the finance department

“In some cases, we’re looking at areas that are not traditionally measured

measures input, so we measure and control

in finance, like customer

how much money we invest but put equal

satisfaction. It’s been quite

attention to the ‘output’ controlling, so both

a journey for our finance

top line and customer experience KPIs,”

w w w. g i g a b i t m a g a z i n e . c o m

embracing the intelligent era with the intentdriven network In 2018, Huawei launched the Intent-Driven Network solution. This solution enables the rollout of a digital twin world that connects physical infrastructure to business needs. The network is driven by customersâ&#x20AC;&#x2122; business intents and service policies. With intelligence, simplicity, ultra-broadband capabilities, openness, and security in mind, Huawei will help build a network that puts user experience front and center. Firstly, the Intent-Driven Network has the predictive analysis capability. Using big data and AI technologies, the network can predict network issues, proactively optimize network performance, and troubleshoot in advance. The network can also perceive the service experience of every single user in real time. With self-learning capabilities, it can continuously improve its intelligence and ability to perceive network issues and user experience issues. Secondly, the Intent-Driven Network is a simple network in terms of architecture, protocols, sites, and O&M, thus achieving full lifecycle automation and making the network more agile and efficient. This

helps improve the utilization of network resources and the flexibility of services. Thirdly, the Intent-Driven Network introduces new ultra-broadband technologies to achieve massive number of connections, ultralow latency, and ultra-high bandwidth. Fourthly, the Intent-Driven Network is always open and can be interconnected with various third-party platforms to build an open industry ecosystem. Finally, the core of the Intent-Driven Network is security. By identifying security threats in advance, the Intent-Driven Network implements proactive defense to ensure network intelligence and automation. The Intent-Driven Network will be integrated into various service scenarios and help carriers build solutions for future business scenarios. In 2018, Huawei has launched a series of innovative solutions for agile private lines, 5G transport, premium broadband, and enterprise campuses. These new options will help carriers reshape their business models.

www.huawei.com

EUROPE

“ Digitisation is inevitable. It will happen anyways, so it’s better to take it in your own hands rather than let it happen to you. Any market player out there will tell you that digitisation is mission critical” — Kai-Ulrich Deissner Chief Financial Officer Technology

team because while it’s still doing the

financial logic isn’t just driving results in

practical things of providing clear num-

the company’s finance department but

bers and proper accounting, it’s also

has impact on further operations within

about establishing financial logic to

the company.

measure our return on investment and productivity.” Deissner adds that it’s been quite a

“By bundling all our activities, it is also helping us use our resources to tackle some of the more challenging

challenge to lead traditional finance

number work as well. This means we

people to look more into the business

can spend less time producing reports

and acting as collaborative business

and more time on interpreting the

partners focusing on market and cus-

meaning of numbers, which enables us

tomer needs.

to support the business by providing a

As Chief Financial Officer for the

broad end-to-end thinking, combining

Technology & Innovation board area,

financial, commercial and operative

Deissner is aware that this sense of

concerns for our business partners.” w w w. g i g a b i t m a g a z i n e . c o m

DEUTSCHE TELEKOM

Whilst cost efficiency is a vital

“You cannot reap all the benefits

aspect of this transformation story,

of digitisation if you are only focus-

it seems that, at the crux of it,

ing on costs,” Deissner explains.

Deutsche Telekom is focused on

“We think of technology as neces-

innovation and market impact.

sary not just for enabling

As a result, digitisation is not just

efficiencies, but for enabling innova-

changing the back-end functions,

tion that provides new products and

it’s also transforming the customer

sources of revenue.

experience and providing new avenues of revenue. J U LY 2 0 1 8

“Let me give you a few examples for efficiencies. One is the way you

EUROPE

Deutsche Telekom is represented in more than 50 countries worldwide

build fibre: Traditionally you manu-

â&#x20AC;&#x153;Another one comes from our call

ally plan the roll out of your network

centres, where we are using artificial

in many detailed process steps. It

intelligent voice agents to answer

takes a long time, before you actu-

customer complaints. In most of our

ally see something on the street.

internal processes weâ&#x20AC;&#x2122;re using

Now, with new technologies we can

those technologies to be more effi-

accelerate this planning process

cient while the key driver remains to

immensely, which is something that

be successful on the market.â&#x20AC;?

makes us more efficient and will help us being on the market quicker.

By all accounts, this has been a mammoth transformation for w w w. g i g a b i t m a g a z i n e . c o m

DEUTSCHE TELEKOM

Deutsche Telekom which has

transformation and we’re satisfied

stretched across all departments

with the results so far. However, we

but none of this would be possible

need further steps to progress even

without the right culture to foster

more,” Deissner explains.

ingenuity. Today’s movers and shakers must

“One of the things that we’ve seen is that if we want to differentiate in

be agile and innovative. The right cul-

the market, there needs to be a cul-

ture is necessary to determine a

tural transformation underlying all of

successful digital transformation.

this,” notes Deissner. “In previous

Deutsche Telekom is promoting new

years, we have seen siloed thinking,

ways of thinking to foster this culture.

whereby people have thought only

“We’ve developed what you could

within the confines of their organisa-

call a ‘truly’ balanced scorecard

tional units rather than thinking about

where we’re looking at the financial

the benefit of the whole company. It

results, the delivery of new technol-

leads to more internal progress but

ogies, the operations, and the

less external progress, and so cul-

J U LY 2 0 1 8

EUROPE

Deutsche Telekom has a revenue of €74.9bn work flexibly in projects, less hierarchical. In IT, we started a programme called ‘IT@Motion’, which is a bottom-up program for the reorganisation of our IT division.” “The motivation behind the restructuring is to give more power to employees and the creators throughout the company. Innovation is not limited to the board; it’s not limited tural transformation will be key.” “To make this cultural transformation real at Technology &

to any department. It’s a mindset rather than an organisation.” Innovation runs deep at Deutsche

Innovation, we massively invest in

Telekom and with savvy financial think-

enabling our employees to work

ing to back it up, it seems the German

in a more agile and cross-func-

telecom is ready for any hurdle that

tional way where suitable. This

comes its way.

includes structural adjustments, trainings and new working methods and tools,” he explains. “In the area of innovation for instance, we start into a pool organisation, the so-called Innovation Hub, where people can w w w. g i g a b i t m a g a z i n e . c o m

RABEN GROUP

J U LY 2 0 1 8

WRITTEN BY

BEN MOUNCER PRODUCED BY

LEWIS VAUGHAN

w w w. g i g a b i t m a g a z i n e . c o m

RABEN GROUP

The Raben Group is in the midst of a company wide digital transformation, led by CIO Slawomir Pawlak wenty years measures as an infinitesimally small period of time in the history of mankind but when it comes to technology, the last two decades will go down as an era of extraordinary significance. Throughout this transformative journey from an analogue past to a digital now, Slawomir Pawlak – Chief Information Officer at the pan-European logistics giant Raben Group – has been in the eye of the storm, a first-hand witness to a rapid shift from one comfortable landscape to an inherently different other. Pawlak, who this year will reach his 20th anniversary as the Dutch firm’s technology leader, has embraced this monumental change with open arms and a sharp mind. This adaptability has rewarded him with the authority to steer digital transformation at a €1bn company, an ambition that would have seemed impossible in the days when ‘IT’ was placed firmly in the back office. “That's amazing perspective, isn't it? I've been here 20 years, in IT at Raben Group,” he recalls. “In 19 of those years I have been in

J U LY 2 0 1 8

EUROPE

w w w. g i g a b i t m a g a z i n e . c o m

We Manage Your Cloud Do You Really Need to Do Everything Yourself? In today’s complex cloud environments, simply outsourcing your IT only helps to a certain extent. As a global partner for cloud services we employ an international approach. This begins with the initial design of your cloud strategy; from selecting a solution, cloud hosting, and even efficient management of your entire IT infrastructure – whether cloud-only or hybrid. Our experts understand your business and are there for you around the clock, helping you to drive innovation and reduce costs.

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EUROPE

the leading position and during

now, to the point where it is powering

that time I might have changed,

change.”

once or twice, all of our systems

Raben Group’s history stretches to long

in Raben Group to new systems

before Pawlak’s time at the company. A mar-

or new versions and new

ket leader in Europe for over 85 years, its

releases.

efficient and dependable service has

“As the technology has grown,

afforded it the reputation as one of the conti-

so has the company. Twenty

nent’s outstanding logistics and warehousing

years ago, we had roughly 500

providers.

people in in the group in two

Pawlak’s remit in 2018 is to lead technol-

countries. Right now, we have

ogy integration in every area of its

10,000 people in 12 countries.

established business; primarily flowing inno-

We had €50mn of revenues back

vative digital infrastructure through its

then and right now we have more

logistics and warehousing operations but

than €1bn. Through company

also exploring how technology can help

growth and technological

Raben Group face the widening range of

change, IT became more and

challenges presented to a multinational

more important to where we are

organisation in the 21st century. w w w. g i g a b i t m a g a z i n e . c o m

RABEN GROUP

SLICK LOGISTICS With the deployment of over 8,000 modern means of transport to carry cargo across 12 countries from Italy to Lithuania, an optimised tracking function is of paramount importance to Raben Group. Pawlak has overseen the amalgam of technological solutions to meet that demand, creating a service that guarantees ‘mobility and visibility’ for its customers. Delivered in partnership with 86

BlueJay Solutions, the business has adopted a single transport management system that connects its operations through one stream, giving it the required transparency. This information is shared to customers via its MyRaben.com portal, launched under Pawlak’s stewardship in 2015 and powered by Mendix, a low-code platform which enables the simplified management and development of in-house applications. “The flow of information across Raben Group and between countries really is fast J U LY 2 0 1 8

EUROPE

“ Twenty years ago, we had roughly 500 people in the group in two countries. Right now, we have 10,000 people in 12 countries” — Slawomir Pawlak Chief Information Officer

w w w. g i g a b i t m a g a z i n e . c o m

Our traffic and logistics software help customers in over 120 countries around the world to optimise the movement of people and goods. Discover how we can help you build the present, to create a better future, ptv.to/mobilitylab

ptv.to/contactus

EUROPE

and very accurate,” explains Pawlak. “Using

Drivers input the information

BlueJay’s software, we're transferring infor-

on mobile terminals through a

mation about transporters’ cargo and

sophisticated application devel-

transporters’ documents really quickly. We

oped by TIS GmbH, the German

present that internally and externally on

telematics provider of logistics

MyRaben, where our customers can see sta-

software. Raben Group, which

tuses, can see documents, can see invoices

has also struck a deal with Pana-

in spite of the location of the cargo.

sonic for the supply of

“This is a really good solution with good

heavy-duty hardware suitable for

performance. Right now, we are migrating

use in transportation, sees thou-

this platform from one cloud to another and

sands of data touch points

on completion of this migration, there will be

across its fleet every day.

the option of automatic scalability of the

This presents a challenge for

infrastructure. This gives me the option to

Pawlak which is a very familiar

grow to offer more services on this platform.”

one for CIOs today – how do you

Slawomir Pawlak, CIO w w w. g i g a b i t m a g a z i n e . c o m

RABEN GROUP

“ A day might not seem like a long time, but if a product only has a shelf life of seven to ten days, then it’s a significant percentage, so the system and delivery have to be 100% right” — Slawomir Pawlak Chief Information Officer

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EUROPE

make first make sense of that data, then how do you turn it into action points that will make a difference? “We are collecting a lot of information from the truck,” he says. “We also have onboard computers that are providing a lot of information about the engine, about the brakes, about the oil and about the pressure. On top of that, you can see how the driver steers the wheel and how they use the brakes. “Data comes from many devices and many applications. At this moment, we are collect-

Video: Raben Group – Company overview

ing some of it, but not all of it, in our data warehouse. One key improvement that in front of us is using that data to power predictive analytics. w w w. g i g a b i t m a g a z i n e . c o m

RABEN GROUP

“We're building some profiles already; the

and outside of Europe. That is

behaviour of customers, the risk of traffic

certainly one of our strengths.

jams or changing the routes of the trucks, all

“We would also consider food

based on historical data. But this is still only

to be a real specialism of ours,

a pilot. Based on information we're already

which is really strictly controlled.

collecting we can build more and more effec-

We have a company called Fresh

tive way of making deliveries and we have

Logistics that is dedicated to the

made investment in this area, but we’re

food logistics, so that’s the sup-

probably still one or two years away.”

ply chain, temperature control, storage, etc. We have to be really

WAREHOUSING FIT FOR THE FUTURE

efficient because a lot of food

Raben Group boasts more than 1,150,000

has quite a short product life. A

m2 of diversified warehousing space, which

day might not seem like a long

are adjusted to suit specific requirements.

time, but if a product only has a

Some 83 of its warehouses are designed for

shelf life of seven to 10 days,

food and non-food products, ADR goods,

then it’s a significant percentage,

goods from the automotive sector, electron-

so the system and delivery have

ics (white goods) and oils. The company has

to be 100% right.”

stated that long-term, the objective is to

In the short-term, Pawlak says

implement the RedPrairie software (a JDA

the business and, indeed, the

product) at all its locations

industry faces two-real chal-

On the organisation’s warehousing opera-

lenges – the ongoing effort to

tions, Pawlak says: “Flexibility is hugely

recruit the right talent and adher-

important; we have to be able to control our

ing to new legislation. But with a

warehouses and be able to accommodate a

richly experienced team backed

wide variety of goods. So, for example, we

by a $1bn organisation, Raben

take big consignments of motorbikes from

Group is in a great

BMW in Berlin directly into our warehouses

position to continue to thrive in

and distribute them to customers both inside

the logistics space.

J U LY 2 0 1 8

EUROPE

Video: Raben Group On the Way

w w w. g i g a b i t m a g a z i n e . c o m

EVOBITS

Navigating the complexities of crypto mining 94

FOLLOWING A SHIFT TOWARDS HOSTING SITES AND DATA CENTRES FOR THE CRYPTO MINING WORLD, EVOBITS I.T. LOOKS SET TO CAPTURE THE EUROPEAN MARKET DALE BENTON PRODUCED BY LEWIS VAUGHAN WRITTEN BY

J U LY 2 0 1 8

EUROPE

w w w. g i g a b i t m a g a z i n e . c o m

EVOBITS

echnology has always been a difficult beast. As the world continues

to become more and more defined by technological innovation, industry sectors all over the world face the challenge of navigating this complex and challenging space. In recent years, the eyes of the world have turned towards cryptocurrency, and in turn crypto mining. More and more organisations are investing 96

money into blockchain, bitcoin and other forms of digital currencies, but this is still a relatively unknown realm. This is where Evobits Informa-

“But last year the company evolved and Evobits IT branched into the actual mining of

tion Technology SRL comes in.

cryptocurrency itself but doing it a little dif-

Created in 2014 on the back of

ferently.”

a spike in demand for cryptocur-

Silviu has spent his entire career in the IT

rencies, Evobits IT worked

and technology space, working specifically

primarily in programming the

in programming and IT consulting. Evobits IT

systems and solutions behind

is the second company Silviu has founded,

cryptocurrencies.

the first being centred around systems pro-

“We created different crypto-

gramming before moving into the blockchain

currencies for clients and different

programming and cryptocurrency business.

software for cryptocurrency min-

Where Evobits IT intends to act differently

ers,” says Silviu C. Balaci, CEO

and disrupt this growing market is in combining

of Evobits IT.

its hosting with its software abilities, allowing

J U LY 2 0 1 8

EUROPE

“ W E’RE NOT JUST BUILDING WAREHOUSES AND THROWING A BUNCH OF GEAR IN THERE,” HE SAYS. “HOSTING CRYPTO MINERS IN A PROFESSIONAL DATA CENTRE AND ALLOWING FULL CONTROL OF THEM IS THE DIFFERENCE. WE BUILD SOME OF THE MOST EFFICIENT DATA CENTRES IN THE WORLD BY USING INNOVATIVE TECHNOLOGIES SUCH AS THE NEW INDIRECT EVAPORATIVE COOLING SYSTEM FROM VERTIV (A TECHNOLOGY USED BY BIG NAMES IN THE INDUSTRY: MICROSOFT)” — Silviu C. Balaci, CEO of Evobits

customers to receive full control and trans-

tures at under 65C, we have an

parency. Evobits IT builds real, physical data

average GPU temperature of

centres and hosts crypto miners within them.

under 50C and we do this while

“We’re not just building warehouses and

keeping the PUE under 1.10. We

throwing a bunch of gear in there,” he says.

also offer full miner control: our

“Hosting crypto miners in a professional data

clients decide what to mine and

centre and allowing full control of them is the

where to mine, they can even

difference. We build some of the most effi-

decide the software that they

cient data centres in the world by using

want to run. There is no other

innovative technologies such as the new Indi-

crypto mining operation that

rect Evaporative Cooling System from Vertiv

does this in the world.”

(a technology used by big names in the

Cryptocurrency is a commod-

industry: Microsoft). Where most mining

ity, and like any commodity, it’s

operations struggle to keep GPU tempera-

cyclical in nature. The company w w w. g i g a b i t m a g a z i n e . c o m

behind the cloud data centers efficiency solutions innovative design

We create, design, innovate, deliver and maintain exquisite complete solutions for your data center Why INNOVA? Because we have the knowledge, experience, expertise, best certified and trained specialized personnel to: design, deliver and maintain data centers and technical rooms, based on the latest technology and offering tailored solutions for a successful project.

104-106 Stirbei Voda Street, district 1, 010119, Bucharest, Romania tel +4021 420 02 22 fax +4021 420 00 32 e-mail office@innovaengineering.ro

EUROPE

was founded off the back of a spike in cryptocurrency, but Silviu admits that the cyclical nature is something that he and Evobits IT must be prepared for. This is where Evobits IT can work closely with clients, as this is still a growing and somewhat unknown technology. Silviu feels that people and companies are investing into cryptocurrency without understanding the technology behind it. “Everyone cared only about the cryptocurrency side of things and the value of it,” he says. “Nobody was really interested in the technologies behind it. At Evobits IT, we work to make clients understand that there is much more to this crypto-world than just the digital coin.” Silviu points to a number of companies that have almost redefined their strategies to incorporate blockchain or cryptocurrency, going as far as adding the two into company names in order to tap into this booming market. This has changed how Evobits IT works

“IT’S BOTH SCARY AND BEAUTIFUL. THERE IS LITERALLY NOTHING STOPPING EVERYTHING FROM CHANGING TOMORROW BUT WE ARE WELL POSITIONED, AND THAT’S BECAUSE WE HAVE REAL DATA CENTRES AND A STRONG DEVELOPMENT TEAM BEHIND IT” — Silviu C. Balaci, CEO of Evobits

with companies. No longer is it a case of just explaining what the technology behind cryptocurrency and crypto mining is, now Evobits works with customers to help them understand that the technology is no silver bullet and it should be used when there is a clear business case. “You cannot use it for everything just because w w w. g i g a b i t m a g a z i n e . c o m

EVOBITS

it’s now in your company name, or strategy,” he says. “It’s just not made for that.” As Evobits IT continues to develop the programming technology behind cryptocurrencies, currently working on a beta stage payment system for the transfer of funds, the company is significantly expanding its data centre capabilities. Evobits IT currently has a couple of data centres finished and operational: a 1 MW facility and a highly efficient 3.5 MW facility, for a total of 4.5MW. By the end of this year, Evobits IT hopes to expand this further by adding an extra 15 MW before looking to 100

build another facility in excess of 20 to 30 MW, but this is something that Silviu admits is “further down the line”. As with most data centres all over the world, location is king. “Location can be split into two important areas – proximity to utilities such as power stations and fibre for network connectivity,” says Silviu. “But we also need to be located near a major city. This helps bring in a workforce and if it’s near an international airport, this opens new doors in terms of attracting clients.” Attracting clients is crucial. Silviu notes that the cryptocurrency market is very opaque, meaning it is susceptible to scams. To this end, Evobits IT will invite potential partners and clients to its data centres in order to J U LY 2 0 1 8

FACT

Extremely efficient data centres allowing us to achieve a PUE of under 1.10. Very low temperatures for the GPUs: an average of under 50C. Individual Miner control with auto-balancing software: if a miner goes offline, another is automatically assigned to take its place. Highly efficient mining system: from custom BIOS that maximizes power efficiency to custom mining software that lowers “uncles rate” to under 15% (the average is over 25%)

EUROPE

dispel any fears and to highlight what the company does that no other currently claims to do. “A lot of important potential partners already visited us: nVidia, AMD, XFX, Sapphire, Gigabyte, Vertiv. When they see what we build and how we do things their tone changes completely, it simply opens a lot of doors that otherwise would have been shut,” says Silviu. Evobits has struck a key strategic partnership with Innova Engineering SRL, a Romanian company which provides consulting, design, implementation and maintenance across all ranges of IT (hardware and software) and telecommunication equipment, turnkey data centre execution.

101

Through this partnership, in which the company has already built a 3.5 MW data centre in Romania (which is almost the entire yearly data centre market share of Romania), Evobits IT has been able to cement its status as key player in the data centre space. “When we first started out in data centres, nobody wanted to talk to us because we had no proven experience in this market,” says Silviu. “Everybody wanted to take advantage of us and nobody was really interested in building a long term partnership, they were just interested in short-term gains.” “But working with Innova on our second Romanian project, everything changed. There are many challenges in what we do because w w w. g i g a b i t m a g a z i n e . c o m

EVOBITS

we always operate our data centres to

is keen to note that the company is

maximum capacity, so everything needs

finely positioned should there be

to be properly planned: from cooling

a sudden shift in the volatile market

capacity to power distribution to air

of cryptocurrency.

volume. It’s extremely important to have

Silviu notes that even as a man with

partners like Innova, ones who will look

such an extensive history in the tech-

at you as a long-term partner and will

nology space, there is always an

join you along this growth journey.”

uncertainty surrounding the future

As Evobits IT looks to the future, with a number of data centre facilities already

102

of cryptocurrency. But it’s not something he fears. “It’s

planned for construction and to come

both scary and beautiful,” he says.

online over the next few years, Silviu

“There is literally nothing stopping eve-

“BUT WORKING WITH INNOVA ON OUR SECOND ROMANIAN PROJECT, EVERYTHING CHANGED. THERE ARE MANY CHALLENGES IN WHAT WE DO BECAUSE WE ALWAYS OPERATE OUR DATA CENTRES TO MAXIMUM CAPACITY, SO EVERYTHING NEEDS TO BE PROPERLY PLANNED: FROM COOLING CAPACITY TO POWER DISTRIBUTION TO AIR VOLUME. IT’S EXTREMELY IMPORTANT TO HAVE PARTNERS LIKE INNOVA, ONES WHO WILL LOOK AT YOU AS A LONG-TERM PARTNER AND WILL JOIN YOU ALONG THIS GROWTH JOURNEY” — Silviu C. Balaci, CEO of Evobits

J U LY 2 0 1 8

EUROPE

rything from changing tomorrow

separates us from others: if something hap-

but we are well positioned, and

pened, it wouldn’t kill us and we wouldn’t put

that’s because we have real data

a lock on it and walk away. We invest more

centres and a strong develop-

today to have the security of tomorrow, no

ment team behind it.

matter what tomorrow will bring.

“If everything did crash tomor-

“Having highly efficient physical data cen-

row and cryptocurrency vanished

tres allows us to, with minimal investment,

entirely, we can turn our atten-

open up the door to another sub sector of

tions to repurposing our data

this market, and that gives us an incredible

centres into colocation hubs or

edge moving forward.”

data processing centres. “That’s what’s key and what

103

w w w. g i g a b i t m a g a z i n e . c o m

104

DELIVERING THE ELECTRIC AND AUTONOMOUS VEHICLE SHIFT IN THE MIDDLE EAST Through electric vehicles, General Motors looks to define the automotive supply chain future of the Middle East WRITTEN BY

DALE BENTON PRODUCED BY

HEYKEL OUNI

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w w w. g i g a b i t m a g a z i n e . c o m

n the ever-evolving conversation centred around the autonomous and electric vehicles of the future, one could be easily forgiven for failing to recognise the impact this will

have on the manufacturers and the procurement networks of the automotive and transportation sector. As the eyes of the world focus on when we will see EVs and autonomous vehicles, the question should really be how. For General Motors, one of the worldâ&#x20AC;&#x2122;s leading automotive manufacturers, this conversation is more prescient now than ever before. â&#x20AC;&#x153;Across our entire global footprint GM is evolving to deliver in line with our technological capabilities across the mobility industry and

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that means that we have to work closer

Over the course of his career, Pallak

with our suppliers across our global

has worked all around the world in both

network in order to deliver and support

engineering and procurement and sup-

this direction.â&#x20AC;? says Sulaiman Pallak,

ply chain roles across multiple industries.

Head of Global Purchasing and Supply Chain. For the last three years Pallak has

It is this experience, working with suppliers from all over the world in different disciplines and different capacities,

been responsible for delivering this new

that Pallak feels provides him with

strategy across the Middle East, with the

a keen understanding on how supplier

vision of establishing GM as the leading

relationships can and will prove key to

automotive brand in the EV space.

defining the future of GM.

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Your life. Our world.

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“With the global footprint that we have at GM, there are suppliers and there are areas in procurement and purchasing that are more complex and in different markets that requires a certain level of understanding,” he says. “My experience provided me with an understanding of how to look at those varying elements and then prioritise the company’s thinking as to how we can make informed decisions that involve sourcing the right materials at the right price and on time.” As the company continues its evolution from a traditional automotive manufacturer, part of this journey will see GM redefine a number of supplier and partner relationships and Pallak firmly believes that procurement as a function has evolved into much more of

“GM is changing its strategy to move into the electric vehicle and autonomous technology space and that means that we have to work closer with our suppliers across our global network in order to deliver and support this direction” — Sulaiman Pallak, Head of Global Purchasing and Supply Chain

an influencer in company strategies all over the world. With manufacturing facilities worldwide, GM has a responsibility to, as Pallak explains, operate the supplier networks surrounding these facilities like a “well-oiled machine”. This is no more apparent than in the Middle East, an w w w. g i g a b i t m a g a z i n e . c o m

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110

emerging market in the procurement industry. “It is true that the Middle East is still growing in maturity when it comes to purchasing and procurement,” says

Click to watch Cadillac’s video ‘The Future is Here’

Pallak. “But that makes it a very good market because companies are investing in people, technology and processes in order to grow the market.” “As the economy of the region grows it compels different areas of industry and different professions to grow alongside it.” Being one of the biggest manufacturers in the world carries with it a level of responsibility that will prove key in pushing the Middle East procurement space towards becoming what CIPS has described as a potential procurement hub of the world.

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This is part of GMâ&#x20AC;&#x2122;s strategy as the attention turns towards the supply of parts and materials being predominantly sourced from suppliers and manufacturing partners from other parts of the world and then shipped to the region. But how can GM seek out more efficient and more effective ways of getting products to market? Investing in the region and developing a network of suppliers that are local, removing the dependency on sourcing from all around the world, is one answer. â&#x20AC;&#x153;As we push to become the number one 112

automaker in the region we need to push the ability to supply and our supply chain needs to become more forward thinking and more proactive,â&#x20AC;? Pallak says.

BIO

Sulaiman Pallak is a senior executive with over 10 years of experience managing procurement, supply chain and logistics transformation in Fortune 500 companies. Leading multiple staff responsible for annual $165 million+ global purchasing and supply chain operations with focus on continuous J U LY 2 0 1 8

MIDDLE EAST

“How do we get our products into the region? How do we sell them to our dealer network? How do we reach our consumers? These are the questions we need to ask and in order to become the number one in the region, we need to engage with key partner suppliers” — Sulaiman Pallak, Head of Global Purchasing and Supply Chain

business improvement in a very large global corporate structure. Sulaiman is also a senior leadership member of GM Middle East Operations. Multiple General Motors Leadership award winner for significant contribution to improve corporate performance.

Education: • M BA. Supply Chain & Logistics from S.P. Jain University, Singapore • BSc. Business Administration from Manchester Metropolitan University, United Kingdom w w w. g i g a b i t m a g a z i n e . c o m

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YOUR PARTNER IN AUTOMOTIVE RESEARCH in 89 international markets

Celebrating 30 years in the MENA region @IpsosMENA

www.ipsos.com

MIDDLE EAST

115

â&#x20AC;&#x153;How do we get our products

tion that is defined by its supplier

into the region? How do we sell

capabilities and to this end the

them to our supplier network?

company implements a global

How do we reach our consum-

strategy called the Strategic

ers? These are the questions

Supplier Engagement Program.

we need to ask and in order to

Through this initiative, GM

become the number one in the

creates a transparent supply

region, we need to engage with

chain network by sharing current

key partners.â&#x20AC;?

designs and blueprints for prod-

The company aspires to manufacture and sell best in class

ucts often years in advance. This, Pallak feels, allows a far

products and automotive vehicles.

more collaborative supplier rela-

Pallak notes that this is an aspira-

tionship that creates tangible w w w. g i g a b i t m a g a z i n e . c o m

MENA

INNOVATING THE WAY BRANDS ARE BUILT

We are enabling brands to win in the digital economy by embracing the potential of disruption. www.dentsuaegisnetwork.com info.dubai@dentsuaegis.com +971 4 447 4996 Loft Office 3, 208/9, Dubai Media City, PO Box 502177 Dubai, UAE

benefits for both the supplier and

ning to establish a Strategic Supply

for GM.

Council. This council will work with

“We show the suppliers our

GM to identify ways in which the

designs and our blueprints, as

suppliers can generate cost effi-

well as sharing the volume that

ciencies and find greater efficiency

we’d need for these future designs,”

in getting products to market.

he says. “In return, we get information about raw materials and

Supply Excellence Award, in

technology that they can develop

which GM highlights the best of

years in advance. Information that

the best suppliers in regards to

we can use and adopt to our plans.”

their collaboration. These awards

Pallak is currently working to take this supplier engagement further in the Middle East by plan-

J U LY 2 0 1 8

This is supported by an internal

will help define the Strategic Supply Council. “In the future GM will plan to

MIDDLE EAST

“As a company, we learn to ensure that the customer is at the centre of everything we do” — Sulaiman Pallak, Head of Global Purchasing and Supply Chain

form the Supply Council for the Middle East from a wide range of strategic suppliers that we develop as we expand,” Pallak says. “This council will be the acting voice for GM as we seek out and define our future supplier portfolio.” GM’s journey is one of continuous evolution. No journey can ever truly end and Pallak recognises that while this is a journey of transformation for the company internally, there is one key component that cannot be forgotten – the customer. “As a company, we learn to ensure that the customer is at the centre of everything we do,” he says. “Every product, innovative technology or efficiency that we enable is done so through customer focused priorities. “Is the customer getting the right product, at the right time, at the right quality? Is the customer getting the right care of service once the vehicle is sold?

w w w. g i g a b i t m a g a z i n e . c o m

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$166bn Approximate revenue

1908

Year founded

180,000 118

Approximate number of employees

Click to watch: Pioneers Cadillac 2017 Oscars Commercial

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Do we have suppliers to provide the right care? These are the questions we must continue to ask ourselves as we continue to grow.” Technology has redefined the automotive industry and this has forced GM to redefine its entire operations. Pallak believes that the next five years will prove crucial, as we can expect to see more developments in technology than we have over the last 50 years. As it looks to embrace this future, GM will continue to work closely with partners and suppliers to develop solutions and technologies in order to be ready for this changing landscape. That is what will continue to prove key for Pallak- collaboration. “It’s about positioning ourselves to be ready for when this market matures. We can only do this through the relationships we forge with suppliers. We develop long term strategic relationships in order to ensure that these suppliers can process the products so that we can deliver them to market and of course, ultimately, the customer.”

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F D C ( F O O D & D R U G C O R P O R AT I O N )

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Disrupting Lebanonâ&#x20AC;&#x2122;s FMCG and pharmaceutical distribution market WRITTEN BY

Lebanese firm, Food and Drug Corporation, is harnessing the latest innovations to provide consumers with the quality brands they need every day

J U LY 2 0 1 8

LAURA MULLAN PRODUCED BY

CRAIG DANIELS

MIDDLE EAST

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F D C ( F O O D & D R U G C O R P O R AT I O N )

“We should start embracing change so that we can be more proactive, flexible and remain competitive” — Bassam Baz, Head of IT

122

he hardest part of a

to meet customers’ demands, adapt to the lat-

successful digital trans-

est international trends, and anticipate what

formation is creating a

lies ahead in the sector.

work culture that embraces

Headquartered in the Lebanese capital of

change and innovation, and per-

Beirut, FDC’s digital transformation has been

haps no company understands

far-reaching, but before any technology could

this better than Food and Drug

be implemented Head of IT, Bassam Baz, says

Corporation (FDC).

that the company worked tirelessly to create a

Undertaking a root-and-branch digital overhaul, the fast-moving

work culture which would foster innovation. “Probably the most difficult conversation

consumer goods (FMCG) and

you have to have is with the shareholders

pharmaceutical importer, mar-

because digital transformations can be

keter and distributor has strived

expensive,” Baz says candidly.

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MIDDLE EAST

BIO

“So, instead of saying ‘we’re going to have a digital transformation,’ we started to see the

Bassam Baz Head of IT

business’s needs. Then when we spoke to the shareholders and executives, we didn’t speak about technology, but we raised few questions such as ‘what do the customers want from us?’, ‘how can we meet their demands?’, ‘how can we increase their satisfaction levels?’, and many other questions while putting the customer at the centre. “Based on these needs, we put forward a business plan, supported by a digital transformation strategy, that shows the business value proposition and return on investment (ROI). “One of our key roles as the IT department is to educate, reassure and include all employees as we embark on the transformation process,” he continues. “This ensures they are engaged and understand that digitalisation will

Before joining FDC, Baz headed the IT Department for one of the leading FMCG manufacturing companies in the Gulf. This rich experience enabled him to pick up the best practices and norms in distribution while working with different people from across the world with different cultures and backgrounds. After five years’ in the Gulf, in 2015, Baz decided to take a new challenge by joining FDC, one of the leading distribution companies in Lebanon, with a core mission to drive innovation and leverage technologies to provide value and support the overall vision of the company, which is to remain a key player in the supply and distribution of consumer goods and healthcare products.

not take over their position but will make their work easier and more productive. With this plan in place, we started seeing a cultural shift w w w. g i g a b i t m a g a z i n e . c o m

F D C ( F O O D & D R U G C O R P O R AT I O N )

and a change in mindset throughout the company.” Shaped by this forward-thinking culture, FDC has firmly cemented itself as one of the leading distribution companies in the country, boasting a turnover of almost $120mn dollars in the Lebanese market. Present in three main categories – food and beverage, household & personal care, and healthcare – Baz says that the company’s core mission can be 124

summarised by one simple statement: “Providing consumers with everyday quality brands”. “We act responsibly because we genuinely care about our consumers and our reputation for excellence. Therefore, we always go the extra mile to guarantee customer satisfaction at all times,” he says. “On top of this, we have rich competencies, country-wide presence, solid marketing knowhow, young dynamic team, financial stability and uncompromising ethics. I think all of these competencies distinguish FDC J U LY 2 0 1 8

MIDDLE EAST

$120mn Approximate revenue

from other competitors in the market today.” In its latest effort to go the extra mile for its customers, FDC has undergone a mam-

2000

Year founded

moth digital transformation at all business levels. Baz believes this was needed to maintain FDC’s competitive position. “Technology is transforming how we live, work and operates,” Baz observes. “We have to keep technology in mind because to compete in today’s market, organisations need to rapidly embrace emerging technologies for better customer experience while controlling cost and optimizing resources. “To be able to achieve this transformation successfully, IT needs to be looked at as disruptive innovators,” he continues. “At FDC, we believe new technologies has a big advantage on being more proactive, flexible and remain competitive. From this standpoint, it was the right time to take the next step and get ahead with digital disruption.” Led by its team of 650 profesw w w. g i g a b i t m a g a z i n e . c o m

125

F D C ( F O O D & D R U G C O R P O R AT I O N )

sionals and sustainable approach to

trend in the day-to-day work.

growth, FDC has moved ahead with its

According to a survey by the Econo-

forward-thinking technology strategy.

mist Intelligence Unit, respondents who

It has transformed its front-end com-

described their company as a ‘pioneer’

munications and undertaken

in its use of mobile technology scored

end-to-end digitisation, but one of

16% better in terms of productivity than

FDC’s most cogent uses of technology

peers who described their firm’s use of

has been the way it has adopted a

mobile technology as ‘bad’.

mobile workplace approach. Baz underlines how the firm has cre-

Baz says mobility is an important facet of FDC’s sales department. Using

ated a digital workplace to promote

4G-connected commercial tablets, he

mobility which has become a common

noted that sales representatives can

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MIDDLE EAST

now receive real-time information to

opportunities for increased revenues,

track customer financial situations,

based on a predefined algorithm that

stock availability and promotions.

looks at customers’ buying trends and

Additionally, these tablets are also

consumers’ behaviour, for example,”

helping to automate processes by offer-

explains Baz. “Such smart indicators

ing a digital catalogue, appointment

help our team to provide better ordering

scheduling and analytical dashboard.

recommendations to the customer,

Keen to analyse and learn from its rich sales data, FDC has also explored the

meet their needs and, most importantly, win at the shelf.”

use of machine learning technologies.

“The Sales Force Automation (SFA)

“This has enabled the sales team to

solution has also equipped the sales

address sales trends, shortfalls, and

reps with rich knowledge which

127

“Machine learning enabled the sales team to address sales trends, shortfalls, and opportunities for increased revenues” — Bassam Baz, Head of IT

w w w. g i g a b i t m a g a z i n e . c o m

F D C ( F O O D & D R U G C O R P O R AT I O N )

for leave from their mobiles,

“To be able to achieve this transformation successfully, IT needs to be looked at as disruptive innovators” — Bassam Baz, Head of IT

check their leave balance, examine pay slips and review performance results. This service had a realised cost savings while stepping towards an eco-friendly environment.” Zeroing in on its operational expenditure (OPEX) rather than its capital expenditure (CAPEX), FDC also introduced standard, intuitive and sometimes off-theshelf mobile solutions, to become more agile and reactive.

128

increased the customer satisfaction level,

With this in mind, FDC

reduced inquiries, created triangle of trans-

launched a cloud software as a

parency between FDC and customers,

service (SaaS) solution for its

accelerated the time to market, and empow-

merchandising team which

ered sales reps to pursue more opportunities,”

empowered merchandisers to

he continues.

have automated processes such

“On the other side, SFA has enabled

as planogram checking, image

sales supervisors to have up-to-the-min-

capturing and shelf share.

ute information about their teams and

Besides this, it has also enabled

related clients including geo-tracking,

FDC to have online visibility in

secure messaging, and productivity KPIs.”

promotion execution, with an on-

Boasting a solid financial standing, it

the-fly notification system that

seems technology is also revolutionising

allows the back-office team to act

all FDC functions.

rapidly if products are close to

“Digital transformation has changed the way

expiration or unavailable.

employees engage with FDC through the HR

“Another SaaS solution we

self-service that enables employees to apply

introduced is called TreasuryX-

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MIDDLE EAST

Click here to watch FDC’s Annual lunch 2018

129

press which gives us access to a

of efficiency, collaboration, flexibility and

powerful and effective treasury

productivity.

management solution,” Baz

“In our effort to empower a modern work-

notes. “It enables stakeholders to

place, we enabled virtual meetings through

make critical business decisions

Skype for Business,” Baz notes. “This meant

and improve long and short-term

people could join meetings from their laptops

financial operations,” he added.

and mobile devices. This encourages collabo-

Mobile technologies have proven to be an effective driver

ration across the company and reduces the cost of traditional communication tools. w w w. g i g a b i t m a g a z i n e . c o m

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MIDDLE EAST

“FDC also introduced OneDrive for Business which provided a place in the cloud where each employee can store and share work files, and even work on documents with others anywhere at the same time. “We have also implemented Yammer as social network platform within FDC. It is used for sharing information, announcements, achievements, activities and success stories amongst our colleagues,” Baz adds. “This tool enabled us to have greater inter-

131

action among employees.” To support this sweeping digital transformation, FDC created what Baz describes as the “one of the most powerful and scalable data centres in the Lebanese FMCG distribution industry today. “From a technology point of view, it’s a tier 3 converged data centre which supports provisioning on demand, virtualisation, environmental management system and guarantees 99.7% of data availability,” he explains. “On top of this, it has also enabled a fully wireless solution w w w. g i g a b i t m a g a z i n e . c o m

F D C ( F O O D & D R U G C O R P O R AT I O N )

across FDC which allows employees to

Lebanese firm has worked diligently to

stay connected on mobile, tablet, lap-

attract and retain a skilled team.

top, wherever they are.” Combining a progressive work cul-

“We always enrol the IT team in an annual development programme,” Baz

ture with its new digital strategy, FDC

says. “This encourages them to be

has grown to become a more digitally-

more intuitive, to get more familiar with

enabled company. However, it hasn’t

new technological tools, and remain up-

lost sight of one of the key drivers of its

to-date with the latest trends.

success – it’s team. With this in mind, Baz says that the

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J U LY 2 0 1 8

“The IT team also participates in the annual excellence awards to demon-

MIDDLE EAST

strate their work and achievements,” he

ship capabilities by sponsoring

continues. “In 2017, the IT team won the

executive education.”

outstanding achievement award for the mobility solutions that we implemented. “As part of our work culture, we strive

With a reach extending to more than 10,000 outlets across Lebanon, FDC strives to deliver quality products to its

to be an employer of choice by truly car-

consumers, by carefully selecting its

ing for our employees, equipping them

brands, rapidly adapting to trends and

with outstanding tools, opening the

now undertaking a mammoth digital

doors to new possibilities, increasing

transformation, the company has firmly

involvement and strengthening leader-

established itself as one of the nation’s

133

w w w. g i g a b i t m a g a z i n e . c o m

F D C ( F O O D & D R U G C O R P O R AT I O N )

‘Smart Warehousing and Distribution’ solutions. Baz says that investing in IoT technology could also increase speed and shipping accuracy and will also profoundly change logistics management. Meanwhile, blockchain technology could also evolve the supply chain operation. Needing to be more customercentric by retaining trust and enhancing the user experience, FMCG companies face continu134

Click here to watch ‘A day at the Distribution Center’

ous challenges today. One important challenge arising on digitisation level is the issue of cybersecurity.

leading FMCG and pharmaceutical distributors. But what lies on the road ahead? In the short term, different technology

Today, the threat landscape is evolving rapidly and consequently, FDC introduced a

trends will soon take over the FMCG sector.

Managed Security Service with

Therefore, FDC says it may explore more cut-

its strategic partner Crystal Net-

ting-edge solutions like artificial intelligence,

work to recognise and mitigate

robotics and machine learning.

cyber threats through its Security

For example, Baz believes that artificial intelligent chatbots may be used to respond to customer inquiries. In the long term, other technologies like the

Operations Centre (SOC) service. Through this partnership, Baz says FDC also gained a seamless methodology to guarantee multi-

Internet of Things (IoT) will also be of vital

layer security strategy, catch and

value for distributor companies, offering

repair vulnerabilities, organise

J U LY 2 0 1 8

F D C ( F O O D & D R U G C O R P O R AT I O N )

136

“This transformation has the ability to break down functional silos and to make the company more productive, but it is also changing the way we interact with our customers and meet their demands” — Bassam Baz, Head of IT

J U LY 2 0 1 8

MIDDLE EAST

staff awareness training and adopt the latest security technology whilst maintaining the optimal ROI. Most importantly, this solution has also prepared the ground for FDC to comply with the new General Data Protection Regulation (GDPR) that is now being requested by its business partners located in Europe. But, regardless of what is implemented, it seems FDC will remain focused on one core goal – to enhance the experience of both FDC users and its customers alike. “At the end of the day, this digitisation strategy has two angles: colleagues and customers. This transformation has the ability to break down functional silos and to make the company more productive, but it is also changing the way we interact with our customers and meet their demands.”

w w w. g i g a b i t m a g a z i n e . c o m

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UMNIAH

SUPPLY CHAIN MANAGEMENT KEEPS JORDAN CONNECTED 138

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From WiMax to 4G, Umniahâ&#x20AC;&#x2122;s supply chain management brings last mile service to homes, businesses and customers across Jordan. WRITTEN BY

OLIVIA MINNOCK

PRODUCED BY

HEYKEL OUNI

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w w w. g i g a b i t m a g a z i n e . c o m

UMNIAH

ince its launch in June 2005, Umniah has become a leading player in the telecommunications space, offering

high quality mobile, internet ad business solutions and transporting Jordan’s telecommunications services. Umniah, owned by the Bahrain-based telecoms specialist Batelco Group, is the third operating Telecom provider in Jordan. “Umniah isn’t the biggest provider in terms of customers but is the market leader in price. In addition, we maintain a high level of quality,” reveals Head of Supply Chain, Ahmad Almubuslat. Umniah has a commitment to procurement 140

and supply chain management as an integral part to its overall strategy, and this was what first attracted Almubuslat to move to the telco world. His career in procurement began with Royal Jordanian Airlines. “I started with no certificate, following the current policies and

its supply chain and contribute

procedures of the company, but by 2009

to networks across the nation,

I started following leading practices and gaining

becoming Jordan’s fastest LTE

professional certification.” Almubuslat became

network for 4G and Fixed in 2016.

the first Jordanian to gain the Certified Purchas-

Of the three main markets in

ing Manager Qualification from the Institute for

Jordan – voice, mobile data and

Supply Chain Management, following this up

managed data services (MDS) for

with several other certifications. In 2014, he

business – the third was largely

was headhunted by Umniah. “I accepted to

developed by Umniah and utilises

join the company because of Umniah’s belief

microwave links. “In Jordan,

in procurement as a strategic function.”

Umniah has a very big market

Since then, Umniah has worked to manage J U LY 2 0 1 8

share for MDS across different

MIDDLE EAST

141

industries and for individuals too,” says

did not stop there. “We have a huge

Almubuslat. “We also have a very com-

market in other governorates which are

petitive share in home internet.”

large concentrated areas. The credit

Within these segments, Umniah

goes to our quality of coverage,

works to not only deliver cost savings

together with a good service at the right

but high quality too, thanks to relation-

price,” Almubuslat explains.

ships with suppliers. “We adopted the concept of the total value of ownership,

GETTING THE PRICE RIGHT

not just cost, in order to deliver the best

Getting this “right price” is a key

value at the best price”. Within the vari-

responsibility of Almubuslat and his

ous governorates of Jordan, Umniah

supply chain team, as it’s all about

expanded in the capital, Amman, but

effectively negotiating with suppliers w w w. g i g a b i t m a g a z i n e . c o m

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MIDDLE EAST

ance and surveillance solutions.

“WE HAD TO THINK OUTSIDE THE BOX, AND THIS WAS THE SOLUTION WE FOUND TO BRING BEST VALUE FOR US AND FOR THE MOE”

venture between suppliers and

— Ahmad Almubuslat, Head of Supply Chain

tractors to deliver the best price.

“The competition was tough, but we did something different by developing new ventures and partnerships with suppliers,” says Almubuslat. Umniah developed a manufacturers, utilising local con“We had to think outside the box,

and managing an efficient procurement strat-

and this was the solution we found

egy. “Once I joined, we agreed to develop a

to bring best value for us and for

supply chain function, which we have success-

the MoE. We then provided free

fully managed this year.” Almubuslat heads up

safe internet to all schools through

this new dedicated function, which plays an

the ministry, to support the eleva-

important strategic part for the company.

tion of Jordan’s education system.”

With this in mind, Umniah has already won some important tenders with organisations as large as the Ministry of Education (MoE), with the Connectivity Tender, a five-year contract, having been awarded in May 2016. “The main scope of the MOE Tender was to provide connectivity by establishing links for around 3,000 schools, directorate and administrative buildings in Jordan. This was almost the size of a new network, in addition to other requirements relating to attendm i d dwl ewew. a sg ti g. baubsi ti nmeasgsaczhiineef.. c o m

143

UMNIAH

“WE BELIEVE IN EVALUATING THE TOTAL VALUE OF OWNERSHIP, NOT JUST COST” —

Ahmad Almubuslat, Head of Supply Chain

an extended value in having a real partnership in place with our suppliers: engaging suppliers at the earliest applicable stages will strengthen our sincere intention of having the ownership of all stakeholders internally and externally. “We also believe in and support our suppliers, most of which are mid-sized and easier to work with and grow. We’ve managed to develop two medium sized suppli-

144

SUPPLIER RELATIONS

ers to become huge, competitive

Maintaining healthy relationships

companies in Jordan. We also

with suppliers and getting them

develop relationships with manu-

behind Umniah’s vision is essen-

facturers. I have the choice

tial. Umniah promotes Early

between buying equipment then

Procurement Involvement (EPI).

awarding another supplier the

“Umniah believes in the value of

installation, versus developing a

procurement and the value our

venture under our supervision.

team brings to the organisation

While the latter can initially be cost-

through gaining better offers,

lier, I choose to manage that

time to market and margins, and

long-term business relationship as

it’s important to engage at an

it works out better overall in terms

early stage,” Almubuslat explains.

of pricing in this specific case.”

“This was also reflected on the supplier side by implementing Early

END-TO-END BENEFITS

Supplier Involvement, specifically

Efficient supply chain manage-

for the strategic projects. There is

ment not only makes savings, but

J U LY 2 0 1 8

MIDDLE EAST

145

w w w. g i g a b i t m a g a z i n e . c o m

ensures consumers get what they want, when they want. “There are

Jordan also has a special geo-

some strategic items like SIM

graphical nature. “We have a lot of

cards and CPE (consumer-prem-

mountains and valleys, which

ise equipment such as routers) for

might limit what one site can cover

example that we need to have

in terms of area, so we’ve

available at all times,” explains

increased our number of sites. We

Almubuslat. A close eye is kept

also changed our CPEs to provide

on quality. “We’re buying the net-

CPEs that deliver the best value by

work equipment at the best price,

having excellent indoor coverage

but the customer will not be able

at the best price. This was initiated

to benefit properly from our net-

by the Supply Chain department,

work unless we have a good CPE

working alongside engineering and

that can deliver the service with

marketing teams.”

such a quality and speed.” J U LY 2 0 1 8

In terms of quality challenges,

New network licences were also

MIDDLE EAST

Click here to watch our video ‘Inspired by you’ 147

introduced to improve CPE cover-

“Adapting the current assets in

age, since different licences

delivering the latest technology

available on the same site may give

guaranteed the best time to mar-

better service to individuals or

ket and the best value. For

companies. “We explored the

instance, we have upgraded

market through our suppliers to

some existing sites to host LTE

check which licences were worth

Fixed Technology.”

investment and found a licence that enhances coverage for the

STRATEGIC FUNCTION

customer. The price was peanuts

Batelco Group has recently

compared to the value of the ser-

revamped the Procurement Poli-

vice delivered to the end user.”

cies in order to assure having the

Service quality has also been

best value for money in an agile

improved with the delivery of a

frame. A collaborative process

new 4G network for Jordan.

within Umniah ensures each conw w w. g i g a b i t m a g a z i n e . c o m

UMNIAH

tract awarded is compliant and shortens the approval process. “We always ensure full compliance with the Policies and Procedures, of both the Batelco Group and Umniah Mobile Company,” says Almubuslat. “Before making any strategic step we get the blessings of the Group and the board. We conduct pre-delivery inspection and on delivery inspection, and after that, we have multiple acceptance levels within a reasonable timeframe to 148

assure that what is delivered is in line with what is requested.” In addition, it is important Umniah ensures compliance with requirements from third parries including government entities. This is mandatory at all stages of the supply chain journey. “Umniah Mobile Company is the first telecom operator to join the Golden list under the Customs Department,” Almubuslat adds. Umniah uses internally approved contract templates which act as framework agreements with key suppliers.

J U LY 2 0 1 8

“WE HAVE A HUGE MARKET IN ZARQA WHICH IS A LARGE, CONCENTRATED AREA. THE CREDIT GOES TO OUR QUALITY COVERAGE, TOGETHER WITH A GOOD SERVICE AT THE RIGHT PRICE” — Ahmad Almubuslat, Head of Supply Chain

MIDDLE EAST

“Awarding has become much more agile than before; this will enable us to enhance the time to market. We place a new annex/ addendum for the new scope with the associated pricing and then issue the Purchase Order.” Strategic sourcing is a key function under Umniah’s Supply Chain department. “We continually scan the market and conduct due diligence of benchmarking, not only in terms of pricing but also value, features and new technologies tobe included.” Umniah Mobile Company is always keen to maintain its position as the price leader in the market, and this can be sustained and accompanied with better quality through a proactive Supply Chain department.

w w w. g i g a b i t m a g a z i n e . c o m

149

E M I TA C H E A LT H C A R E S O L U T I O N S

150

Excellence in technology. Excellence in patient care J U LY 2 0 1 8

MIDDLE EAST

151

WRITTEN BY

LAURA MULLAN PRODUCED BY

CRAIG DANIELS

Partnering with the sectorsâ&#x20AC;&#x2122; leading healthcare and technology providers, Emitac Healthcare Solutions is transforming the patient experience w w w. g i g a b i t m a g a z i n e . c o m

E M I TA C H E A LT H C A R E S O L U T I O N S

s the healthcare IT market is

all of our solutions are mission-

predicted to reach a value of

critical services that are

$280.25bn by 2021, Emitac Health-

important to save patients’ lives.

care Solutions (EHS) has made a name for

Healthcare is becoming more

itself as the most preferred healthcare solu-

and more complex therefore we

tions integrator in the UAE region.

need to have the necessary

Keeping pace with emerging trends in the

152

knowledge in healthcare

healthcare landscape, the Dubai-based firm

devices, clinical and IT. At EHS,

is tapping into Healthcare Information &

we have the right mix of talents

Technology (HI&T), a fast-emerging avenue in

and domain expertise. Our team

healthcare that aims to enhance operations

includes healthcare professional

in all aspects of healthcare management, by

medical engineers, nurses, doc-

optimising the acquisition, big data analytics,

tors, clinical specialist and

storage, retrieval and use of information.

business people. Our profes-

It is clear that EHS’s core mission isn’t

sional team supports all our

about technology for technology’s sake. It’s

mission critical solutions 24/7 at

about providing cutting-edge tools that

99.8% uptime.”

embrace the industry’s best practices, meets

“We also exclusively represent

the technological needs of staff and delivers

the leading brands in the market

the highest standards of patient care.

today like Philips, Vocera, Hill-

In order to keep abreast with changing

Rom, Masimo, Capsa Solutions

technologies and innovations, EHS’s Health-

and Stanley Healthcare which

care & Information Technology business unit

gives us a strong leadership

caters to the technological needs of the healthcare industry. Suresh Babu, Senior Divisional Director of Critical Care and HIT, says: “EHS strives to deliver reliable and cost-effective solutions that truly enhance patient care.” “Our success lies in our customer-centric approach,” Babu explains. “Fundamentally, J U LY 2 0 1 8

MIDDLE EAST

153

w w w. g i g a b i t m a g a z i n e . c o m

E M I TA C H E A LT H C A R E S O L U T I O N S

position. It is this combination of factors that is the key to our success. “Our eclectic portfolio includes critical com-

“Communication fundamentally helps to save lives,” reflects Babu. “Poor communication may

munication solutions, tracking and protection

lead to potential death. Unfortu-

solutions, patient entertainment, and clinical

nately, communication errors are

information solutions which come from the

the number one current cause of

industry’s leading partners,” he adds.

harm to patients. The Joint commission on Accreditation of

CRITICAL COMMUNICATION

Healthcare organisation

Communication is the lifeblood of healthcare

describes communication error

and perhaps no one understands this better

as the cause of 60% to 70% of

than EHS. As such, EHS has created several

preventable hospital deaths.” *

services to deliver end-to-end communica-

Traditionally, there is a time

tion between clinicians and patients alike.

gap required to assess the

No name? No number? No problem.

Call a person, a role, or a department instantly with just the touch of a button.

Learn more at: www.vocera.com/me or call 800-0182438

MIDDLE EAST

“ COMMUNICATION FUNDAMENTALLY HELPS TO IMPROVE PATIENT CARE AND SAVE LIVES” —

Suresh Babu, Senior Divisional Director, Critical Care & HI&T

* Ref: Joseph Murphy, MD&amp; William Dunn, MD CHEST Journal; December 2010 Vol 138, issue 6, page-1292

w w w. g i g a b i t m a g a z i n e . c o m

155

E M I TA C H E A LT H C A R E S O L U T I O N S

patient’s needs from the moment

tion and every patient room,” Babu says.

the patient requests for help.

“With Vocera communication solutions,

With solutions like Vocera, the

the nurses don’t need to walk around as

moment a patient presses a but-

much they do, they can directly interact

ton, they can have live

with the patient or clinician wherever they

communication with caregivers

are. When reducing the communication

and their concerns will be

gap between the patient, caregiver and

addressed within 20 seconds.

clinician, more time is available in order to

“Nurses in the wards walk about seven to eight kilometres per day between the nurses’ sta-

156

potentially save lives”. Keeping pace with some of the sector’s most disruptive technologies, EHS offers

“ OUR SUCCESS LIES IN OUR CUSTOMER-CENTRIC APPROACH. FUNDAMENTALLY, ALL OUR SOLUTIONS ARE MISSION-CRITICAL SERVICES THAT ARE IMPORTANT TO SAVE PATIENTS’ LIVES” —

Suresh Babu, Senior Divisional Director, Critical Care & HI&T J U LY 2 0 1 8

MIDDLE EAST

real-time location services, monitoring

prevents infants from being

patients, staff, assets and even the tempera-

abducted,” explains Babu.

ture and humidity within the facility. This

“We have a radio-frequency

ensures safety within the healthcare environ-

identification system whereby

ment and reassures new mothers of any

babies are tagged with devices

concerns about mother-to-infant matching

that work closely with wi-fi and

and prevention of potential abductions.

security systems. If a baby is

“Today, infant protection is very critical for

handed to the wrong parent, is

two reasons: it ensures the right baby is

near an unauthorized zone, or

placed with the right mother and are well pro-

is abducted, the doors will

tected within a secured zone, and it also

immediately lock and sound an

157

w w w. g i g a b i t m a g a z i n e . c o m

E M I TA C H E A LT H C A R E S O L U T I O N S

alarm – unless there is a fire alarm. This ensures the infant’s utmost safety.” PATIENT ENTERTAINMENT

Today, patient entertainment systems are also becoming a norm in healthcare, helping patients beat boredom whilst engaging in personal healthcare. Offering solutions such as Patient Linc and Mobile Linc, EHS ensures that patients can watch movies, Skype with fam158

ily members, and learn when their lab results are set to come back or when they’re going for an X-Ray. The result: increased patient

tors and patients potentially reducing

satisfaction, increased patient

infections which is one of the biggest chal-

engagement, better health out-

lenges faced by healthcare sector today.”

comes and fewer hospital readmissions. “Patient engagement is very

INDUSTRY-LEADING PARTNERSHIPS

To make healthcare affordable, Babu says

critical as they can be in a hospi-

the sector needs to utilise tools that offer the

tal for days or even weeks,”

best return on investment (ROI) and that’s

notes Babu. “The patient has to

why EHS only partners with market-leading

be engaged and they should

healthcare and technology providers.

have a choice of entertainment.

“Our solutions like Vocera, Stanley,

On top of that, Skype reduces

Masimo, Forcare, Hill-Rom, or Philips, are

face-to-face contact with visi-

amongst the best in that technology space,”

J U LY 2 0 1 8

MIDDLE EAST

"PATIENT ENGAGEMENT IS VERY CRITICAL AS PATIENTS CAN BE IN A HOSPITAL FOR DAYS OR EVEN WEEKS” — Suresh Babu, Senior Divisional Director, Critical Care & HI&T 159

Babu says. “That’s very critical, especially

“There is big potential in Middle

if you look at countries like UAE which look

East because there has been a

for premium brands. These solutions are

rise in lifestyle diseases such as

helping clinicians and adding value, making

obesity, diabetes and high blood

healthcare more affordable, interoperability

pressure,” explains Babu. “If you

and fundamentally increasing efficiency.”

take the UAE, for instance, the

The healthcare system in the Middle East

region has one of the largest dia-

is investing large amounts into infrastruc-

betic populations in the world.

ture and equipment. If the market becomes

Therefore, the Middle East is defi-

saturated with newly constructed hospitals,

nitely looking at investing more in

experts will look to see which technologies

healthcare and being more cost-

and applications could bring about cost

effective through technologies

optimisation and ROI.

because the population is groww w w. g i g a b i t m a g a z i n e . c o m

E M I TA C H E A LT H C A R E S O L U T I O N S

160

ing and demand for healthcare is also growing.” Innovation runs deep at EHS

dynamic changes in the sector. “Healthcare is going to drastically adapt to the changing technology environment,” he

and not the one to sit on its lau-

says. “We believe that artificial intelligence in

rels, the Dubai-based company

healthcare is one of the best use cases in

is on the lookout for the next

healthcare technology and so that’s an area

state-of-the-art technology;

where we are focusing by partnering with

turning its attention to telehealth,

Philips AI. We are also exploring the use of

Tele-ICU, virtual consulting,

teleconsulting and telemedicine.

interoperability, and artificial

“Today, people want second opinions.

intelligence. As a result, Babu

They want to consult a doctor from home.

believes that EHS is ready for any

This critical communication technology is

J U LY 2 0 1 8

MIDDLE EAST

Emitac Healthcare at Arab Health 2018

going to drive the market of future virtual

United by a vision to champion

care. We are also going to focus on oncology

practices, meet the technologi-

services and recently partnered with Varian,

cal needs of staff, and deliver

who are one of the leading technology pro-

exceptional patient care, EHS

viders for oncology in the world. That’s an

has established its position in the

area where we expect to see growth.”

healthcare technology market.

Since he first joined the company around

Going forward, it seems it is set

13 years ago, Babu has helped to build EHS’s

to remain a market leader in

Health Information & Technology department

years to come.

from scratch. Today it has become fundamental to EHS’s success as one of the leading health technology integrators in UAE. Experience Excellence

w w w. g i g a b i t m a g a z i n e . c o m

161

THE RISE MOBILE EDGE, of

OPEN SOURCE NETWORK

VIRTUALISATION

Inside Kontron Canadaâ&#x20AC;&#x2122;s business model transformation Written by Tom Wadlow Produced by Glen White

KONTRON CANADA INC.

Benoit Robert, VicePresident of Strategy & Marketing, and Steve Séguin, Vice President of Operations, discuss how Kontron Canada has leveraged new technologies to remain an industry leader

164

n a world that is increasingly

continues to rise – Statista forecasts

defined by software and all

global spending to reach $1.12trn by 2019,

things virtual, organisations

up from the $987bn spent in 2013.

across industries are reaping

For Kontron Canada Inc., a globally-

the benefits of migrating critical

active subsidiary of the Kontron Group, its

functionality away from on-

mission statement is to design hardware

premise and into the cloud.

fit for this software-defined world.

Indeed, IDC predicts global

“Our business model has had to change

spend on public cloud to hit

dramatically over the past five years,”

$160bn this year, an increase

comments Benoit Robert, Vice-President

of 23.2% on 2017. Offering

of Strategy & Marketing. “Where we used

cost efficiency, scalability

to selling the hardware to a customer

and increasing reliability to

who would then sell a complete solution

its beneficiaries, it appears

to a service provider, however we now

the software and cloud

work directly with these service providers

computing tide is gathering

to expose them to what we’re doing.

irreversible momentum. However, hardware still has a critical role to play. IT hardware spending J U LY 2 0 1 8

“We show them what integrated hardware and software can do and how this can fit into the new type of virtualised networks they’re trying to build.”

CANADA

Kontron Canada’s portfolio includes best-of-breed OEM hardware and its SYMKLOUD open

model has been the emergence of mobile edge computing. The premise of mobile edge

infrastructure platforms, built to help

is simple – to bring processes

clients deploy virtual services using

closer to the end consumer,

software-defined networking and

thereby reducing congestion

network function virtualization.

on networks and boosting

Such clients predominantly operate in three core industries – telecoms, media (video and broadcasting) and cloud.

performance of applications. “This is all about the computing and the support services closer

MOBILE EDGE – THE 5G FRONTIER

Central to the firm’s shift in business 165 BIO

Benoit Robert is Vice President of Strategy and Marketing for Kontron’s Communications Business Unit and responsible for product strategy, planning and implementation of market and consumer penetration strategies. Benoit specializes in cloud infrastructure and communications technologies and has spent the last 25 years managing product lifecycles, gathering and prioritizing customer requirements and defining product vision.

w w w. g i g a b i t m a g a z i n e . c o m

KONTRON CANADA INC.

166

Team building activity on water J U LY 2 0 1 8

CANADA

to the cell towers and at the actual cell tower itself,” explains Robert. “Mobile edge computing is about using a lot of new virtualisation software technologies and mixing that with a cloud data centre type of environment. “As a hardware vendor who is also getting increasingly involved with open source software, edge computing represents a tremendous opportunity for us to provide hardware-software solutions to our customers.”

“ Edge computing represents a tremendous opportunity for us to provide hardware-software solutions to our customers” —

Benoit Robert Vice-President of Strategy & Marketing

Mobile edge computing, Robert explains, stands at the

environmental challenges at

frontier of the 5G network.

the edge is where Kontron’s

Promising to deliver unrivalled connection speeds and immense

expertise truly comes to the fore. “We develop types of

bandwidth capacity, 5G will see an

hardware that can now sit at

unprecedented number of devices

the base of the cell tower, a

connect to a single network. Providers

specialised product that fits

of such networks will thus be dependent

in that environment where the

on mobile edge to disperse this demand

space is very limited and where

and ensure optimum experience for

the environmental constraints are

end users, and Kontron Canada’s

very tough,” explains Robert.

solutions can help them deliver this. “We’re actually building operating

“It needs to be able to support freezing cold temperatures

hardware that provisions multi-access

all the way up to searing heat.

edge computing, compatible for devices

Some markets are very hot

beyond just mobile, i.e. anything that

and you need to develop

can connect to IoT,” adds Robert.

products that can withstand

Addressing the physical and

that kind of punishment.” w w w. g i g a b i t m a g a z i n e . c o m

167

We think in terms of Solutions!

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CANADA

Kontron’s hardware also

EMBRACING

stands up to the shock and

OPEN SOURCE

vibrations caused by extreme

A crucial facilitator of Kontron Canada’s

events such as earthquakes

hardware-software evolution has

and fire. Today’s software-

been open source software.

based world very much

Integration of OpenStack in particular

relies on equipment that

has proven a differentiator for the company,

can withstand the physical

not least because it can tap into the

elements, and Kontron Canada

expertise of a community of experts at an

has carved its own niche in

economical price. Open source software

provisioning this requirement.

also enables flexibility for clients to build networks and data centres in their own way. However, while the perks of cloud adoption for organisations in industries 169 BIO

Steve Séguin is Vice President of Operations for Kontron’s Communications Business Unit. Steve is a goal-oriented and results driven operations executive with extensive experience in high technology manufacturing. With over 15 years management experience spanning operations, production, manufacturing engineering and global supply chain, Steve has a strong record of success developing strategic initiatives, delivering cost reduction and profit improvement, driving organizational change and implementing LEAN through leadership and motivation.

w w w. g i g a b i t m a g a z i n e . c o m

KONTRON CANADA INC.

INSIDE SYMKLOUD OPEN INFRASTRUCTURE PLATFORMS

170

SYMKLOUD series of converged open infrastructure platforms are commercial-off-the-shelf x86 (COTS) platforms for carrier clouds, content delivery networks, hosting and cloud (XaaS) provider infrastructure. They allow organisations to massively scale VNF, edge datacentre, and video/OTT /broadcast workloads and enable fast and efficient roll-outs. MS2900 Series of converged platforms feature nine high density modular nodes managed by redundant gigabit ethernet switches and include compute, storage and dual 600GbE ingress switch fabric in a single 2U short depth enclosure. If an operator wants to run the entire stack for AI from their central office and data centre, for example, the SYMKLOUD MS2910 has a single socket Intel Xeon processor and a PCIe slot on each of the nine nodes, whereby consumable components such as storage, FPGA and GPU can easily be added. SYMKLOUD can also be used to run Virtual Network Functions (VNFs) on top of it â&#x20AC;&#x201C; several can run on the same platform which eliminates the need to purchase numerous pieces of hardware. J U LY 2 0 1 8

CANADA

such as telecoms are well-documented, deterrents such as higher than anticipated costs, start-up delays and being locked into a vendor’s specific approach do exist. Kontron’s OpenStack turnkey platform solution, fully integrated with the Canonical distribution of Ubuntu OpenStack, alleviates these concerns. Robert explains how Kontron’s hardware must keep aligned with updates from Canonical and the OpenStack community: “Canonical have their own releases of their

“ We developed an ecosystem of key partners that are integrated to our supply chain, as if they were an extension of Kontron” — Steve Séguin Vice President of Operations

distribution of OpenStack and our

171

software team does all the work

through a separate licensing

behind the scenes to make sure

agreement with Canonical, used

that it will be fully validated and

for automating deployment,

integrated on our hardware.

scaling and management of

“This is one of the key advantages of using open source software, especially

containerised applications. “Particularly at the edge of a

when considering a community as

network, we have seen increasing

large as OpenStack. I don’t know

interest in Containerisation.

how many thousands of developers

Containers are integrated in the

are part of different projects within

Kontron SYMKLOUD MS2910

the OpenStack community, but when

platform in a turnkey manner,

there is a new release you’re gaining

providing a modular approach

the benefits of all the work done.”

that is designed to fit into the

Robert also mentions Kontron’s work with Google’s Kubernetes, another open source software solution sold

sorts of rack spaces available at the edge,” explains Robert. Software can be more w w w. g i g a b i t m a g a z i n e . c o m

KONTRON CANADA INC.

OPEN SOURCE MISSION Kontron is enabling the networks of the future by offering turnkey, modular, converged hardware platforms that incorporate fully validated and supported Open Source cloud provisioning. Open Source turnkey solutions offer operators a disruptive deployment model, reducing operational costs whilst giving operational freedom. This includes the freedom to mix and match multi-vendor service solutions without the consequences of being locked-in. 172

WHATâ&#x20AC;&#x2122;S NEW Kontron recently updated its SYMKLOUD suite of products, launching the ME1100, a flexible, high-performance platform for vRAN and mobile edge computing (MEC). The platform can enable IT and cloud computing capabilities within the radio access network and easily integrates with telco cloud infrastructure.

J U LY 2 0 1 8

CANADA

SUPPLY CHAIN PARTNERS

Sigmapoint, a “Lean Enterprise” contract manufacturer based in Ontario, is taking on the manufacturing of the SYMKLOUD suite, while Hitek Logistics has been a key transportation and logistics partner, able to quickly ship products anywhere in the world from Kontron warehouses in Canada and Shanghai.

173

efficiently tested, benchmarked or even

turing and supply chain partners to

developed by partners and customers

provision this is the domain of

on SYMKLOUD hardware in SYMLAB,

Steve Séguin, Vice President of

a remote colo environment deployed

Operations. A company veteran of

by Kontron Canada. This greatly

more than a decade, Séguin has

accelerates the purchase decision

spent time both in Germany and

making process with minimal risk.

Canada in various roles. “As part of our operations

RESHORING VIA

strategy over the last few years,

PARTNER POWER

we developed an ecosystem of key

On the operational side, Kontron

partners that are integrated to our

Canada Inc. is in the midst

supply chain, as if they were an

of reshoring the SYMKLOUD

extension of Kontron,” he explains.

product suite to its homeland. Building up an ecosystem of manufac-

“The SYMKLOUD product family was produced in Asia, and we’re w w w. g i g a b i t m a g a z i n e . c o m

KONTRON CANADA INC.

reshoring this so that we can reduce lead times and also increase flexibility.” Sigmapoint, a “Lean Enterprise”

Southeast Asia if the need arises. “Our customers now expect flexibility in our supply chain, short

contract manufacturer based in

lead times, configure to order, and

Ontario, is taking on the manufacturing

programs like vendor managed

of the SYMKLOUD suite, while

inventory,” Séguin adds. “We

Hitek Logistics has been a key

must be able to deliver the right

transportation and logistics partner,

product at the right time and at the

able to quickly ship products

lowest total cost of ownership.

anywhere in the world from Kontron

“These partners contribute

warehouses in Canada and Shanghai.

directly to meeting these key

The company may expand this

objectives, and this helps us grow

network to Morocco, Europe and

our business.”

174 SYMKLOUD: I SEE OPEN

J U LY 2 0 1 8

CANADA

LOOKING AHEAD

Séguin expects the reshoring effort to be fully operational by the end of June, by which time Kontron Canada Inc. will be primed to deliver its unique set of products and solutions not only across its native territory, but worldwide. So, what are the priorities for the two executives heading into this post-reshoring future? “I think we will continue to adapt to our customers footprints and requirements and maintain our very flexible operations so that we can transfer as needed or increase in capacity as needed, and adapt to this evolving market,” Séguin says. For Robert, deciding which of these evolving trends to pursue will be paramount: “I think one of our biggest issues will be trying to remain focused because there are many new trends or markets that are opening up now, and in most cases, they

“ I think one of our biggest issues will be trying to remain focused because there are many new trends or markets that are opening up now, and in most cases, they involve computing hardware of some sort” — Benoit Robert Vice-President of Strategy & Marketing

involve computing hardware of some sort. “We’re monitoring which are the new directions that we would like to be a part of, but when it comes to how things are being built and are being designed, the mindset of everything is software defined. “Everything’s being managed by software

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– there’s so many new opportunities for us, and we’re already starting to look at some,” he concludes. w w w. g i g a b i t m a g a z i n e . c o m

175

The cloud-based

future of

supply

chain management

Dan Bloch, Vice President, Diversified Industries, Financial and Supply Chain Solutions for Oracle in Canada, explains his excitement at what the likes of AI and cloud have to offer the world of SCM WRITTEN BY

JOHN Oâ&#x20AC;&#x2122;HANLON

PRODUCED BY

GLEN WHITE

ORACLE

hen it comes to business computer technology, Oracle is ubiquitous. And when it comes to business applications, Oracle has a similarly strong presence with enterpriseclass products and platforms it has developed in-house, integrated with best of breed solutions it has acquired over the years. In areas such as supply chain planning, PLM, logistics, transportation, warehouse, and global trade management it has established itself as a provider of best-in-class, regardless of the backend ERP. Over the last several years the company has been on a journey to redevelop all of these capabilities for the Cloud – starting with CX, then HCM and ERP, and more recently SCM. Based in Canada, Dan Bloch is Oracle’s VP responsible for customers’ financial and supply chain needs, predominantly in Eastern Canada and the North Eastern USA, and across multiple industries. For him the cloud is not just the biggest opportunity facing Oracle, but a catalyst for change for almost every aspect of business J U LY 2 0 1 8

and consumer life. “We are finding increasingly that with the accelerating speed of change, and emergence of disruptive technologies such as IoT, companies need a platform that can rapidly adopt new capabilities without having to undergo periodic, massive transformations. That platform is the cloud” In the case of IoT, the terabytes of data that now floods in from a myriad of IP enabled devices, RFID, GPS and other sources must be collected, consolidated and thoroughly analysed. Bloch adds: “This data has the potential to help a supply chain assess what it can do because we get better insight into where materials are prior to manufacturing, for example, and where my post manufacturing products are relative to reaching their endpoint.” The challenge lies in making all that data usable, he says, and many companies still have some way to go. Gaining insight from that information, and translating that into positive business outcomes is where Oracle differentiates

CANADA

“As soon as you start dealing with equipment, even if you’re not manufacturing that equipment, you create an entire supply chain situation” – Dan Bloch, Vice President, Diversified Industries, Financial and Supply Chain Solutions

itself. “We have identified the different industries and sub-verticals and are bringing out specific capabilities designed for each. This will always be a continuous journey, but the horizontal infrastructure that enables this is ready now.” For customers this is crucial. For example, a device on a forklift can detect that a piston is overheating, but without sophisticated predictive analytics that signal is meaningless.

And without the ability to translate that into action, such as creating a work order, complete with the right tools, material and besttimed dispatch, that signal by itself is just not useful. “Oracle is transforming that signal into real, actionable information and then integrating that into the right ERP and SCM processes,” Bloch says. “That’s what is unique.” w w w. g i g a b i t m a g a z i n e . c o m

ORACLE

Oracle ribbon cutting ceremony for its new Design Tech (d.Tech) High School – a public charter school that works closely with the Oracle Education Foundation, a non-profit organization funded by the company

The power of 5G, IoT and AI Communication infrastructure operators justified the capital cost of building out the 4G network on the demand for video streaming. Now they are looking to IoT: the proliferation of devices will require mobile networks that can handle an exponential growth in data. That’s what going to drive the investment in new 5G networks and their 100x speed and capacity. In Canada he sees these forces converging: “Business needs the information these devices can provide, and the ability for those devices to communicate over mobile networks, and to be able to service J U LY 2 0 1 8

that information in a way that’s relevant to business goals.” Delivering these services in a cloud environment for supply chain is still relatively new. Oracle has been immensely successful with its traditional on-premise software. Major Canadian businesses are among the many that rely on Oracle supply chain solutions to produce and deliver products to their customers. The territory he looks after is geographically dispersed. Industries like mining and resources operate in remote locations, and for companies like one of the world’s largest

CANADA

gold producers, 5G connectivity will be crucial. “We have some great customers,” says Bloch. “They certainly understood where we are headed in terms of enabling IoT information into business practice. We have large commitments to one another to further that agenda.” Customer-led prioritisation The communications service providers (CSPs) themselves stand to benefit. They deal with huge amounts of diverse equipment, from their towers and signal boosting equipment to cable boxes, handsets and modems – even the devices that give cars mobile

connectivity and their data centres. “As soon as you start dealing with equipment, even if you’re not manufacturing that equipment yourself, you create an entire supply chain situation,” Bloch says. “In the old days, if there’s a failure somewhere, you would learn about it from a customer, then locate and fix it. Today the fault can be detected automatically. The next step is to not just see a problem, but to predict it, locate it, and resolve it automatically without disruption. The preventative capacity that it creates is amazing and all of w w w. g i g a b i t m a g a z i n e . c o m

Perspective matters The future asks more of business. A demand to look at the world from a whole new viewpoint. With a global network of over 2,000 supply chain consultants, Deloitte delivers supply chain management with new perspectives, from strategy through implementation. We serve clients around the world to help them improve their supply chain performance and increase shareholder value. A fresh view on addressing your most challenging decisions awaits at: HeartOfWhatMatters.Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member Firms, and their related entities. DTTL and each of its member Firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member Firms. © 2016. For information, contact Deloitte Touche Tohmatsu Limited.

To make an Impact that

initial go-live. We understand

project costing and profitability,

Matters. That is Deloitte’s defined

Oracle cloud is a catalyst, digital

improved order to delivery cycle

purpose and to act with courage

is the mindset and transformation

times and improved order

and conviction to make an impact

is what’s next.

efficiencies. From a myriad of

that matters every day—across

Our Supply Chain practice focuses

complex systems our team was

our businesses and around the

on delivering practical, strategy-

able to leverage delivered processes

world. At Deloitte, we have been

driven value through advisory

and best practice design to reduce

working closely with Oracle for

services that optimize, reinvent,

the footprint to a compact,

the past 20 years to transform the

digitize and improve the supply

efficient, cloud first platform.

way our clients do business.

chain from end to end — design,

With another client in the

Working hand in hand with Oracle,

plan, source, make, and deliver.

communications industry, we are

we are defining the journey to

We tackle organizations’ most

helping them overhaul their

Cloud in Finance and Supply

complex issues by drawing on

supply chain platform. Leveraging

Chain Transformations.

global capabilities that span all

our proprietary Supply Chain

For us, Cloud isn’t just another

areas of business strategy and

Illuminate Labs, we have helped

technology platform, it’s the future

operations and industries

them move in to the cloud with

of technology. And Oracle’s suite

including Consumer & Industrial

Oracle Supply Chain and Inventory

of Cloud applications are helping

Products; Energy & Resources;

Management including working

Deloitte’s clients open the door to

Financial Services; Technology,

with Oracle on innovating new

a world of new possibilities. Over

Media, & Telecom; Healthcare &

ways to integrate the Digital

22,000 Deloitte professionals

Life Sciences; and Public Sector.

Supply Network.

around the world are helping

Recently our team has delivered

We are helping organizations

client organizations move at the

transformative results to a high-

adopt the Digital Supply Network

speed of innovation and drive

tech manufacturer in Canada.

and we know we can help you

business value with Oracle cloud

Deloitte led this client in

turn your supply chain into a

solutions that are built and tested

transforming the manufacturing,

competitive differentiator. Contact

in an iterative and immersive way.

inventory, order management and

us to find out more about how we

Our team focuses on empowering

procurement processes all

are helping our clients navigate

clients to be innovative and thrive

leveraging Oracle Cloud. The

disruption and leverage the

in the Oracle cloud long after

benefits resulted in improved

opportunities of Oracle Cloud.

SCM BUSINESS DRIVERS INNOVATE

• Enable new operational thinking and support changing networks to free resources to perform more value-added activities.

CONNECT

• Link related business processes to create efficiencies and enable greater transparency.

SIMPLIFY

J U LY 2 0 1 8

• Fewer integrations, less training, and consistent upgrades will empower workers.

CANADA

this is enabled through the seamless integration of IoT, analytics and SCM.” The information might be embedded into existing work processes to enable action – or it can be made useful by applying artificial intelligence (AI) with no human intervention. Bloch says: “It’s the added insights that AI can provide in real-time that really makes the whole thing exciting, and that is why you are starting to see the lightbulb go off for leaders of supply chain. They see tremendous opportunities to take out cost, to improve service and to decrease cycle times. Budgets stay static at best, so their approaches have to be smarter and more cost effective. AI will enable many savings. I can react to a problem earlier with a less serious maintenance task and

not wait until it is more disruptive, costly or even catastrophic. I can reroute my production capacity based on a better understanding of the whereabouts of the problem, or dynamically solve my premanufacturing inventory issues.” Oracle is partnering with customers to drive innovation. “The specifics of a solution may differ but the benefits are not company or industry-specific,” Bloch continues. “These are people who see that the IoT investment and the software investment will drive value in their business. That is a vision we at Oracle share.” The majority of companies today have some sort of work order management

“Business needs the proliferation of devices in the areas where it makes sense to collect information, the ability for those devices to communicate over mobile networks, and to be able to service that information in a way that’s relevant to its goals” – Dan Bloch, Vice President, Diversified Industries, Financial and Supply Chain Solutions w w w. g i g a b i t m a g a z i n e . c o m

BENEFITS OF MOVING TO THE CLOUD COST REDUCTION

• Minimal upfront investment, subscription-based pricing.

SCALABILITY

• Easy expansion with minimal risk

SIMPLICITY

J U LY 2 0 1 8

• The cloud vendor handles maintenance, and upgrades

CANADA

Founded in

1977

process, he says. They vary in the extent to which these processes are digitised, but whether they are running their enterprise on an Oracle backbone or another system, Oracle IoT and SCM solutions can be integrated without the need for a costly migration of their existing backbone. Of course, if that backbone were the Oracle Cloud, the capabilities would be part of the platform. Beneficial partnerships Oracle has an accreditation process for its implementation partners, with differentiation on the basis of their experience and the breadth, depth and value that they bring outside of

just IT implementation. In many cases a joint collaboration makes sense when approaching an SCM transformation in the context of broader corporate goals. Industry-specific know-how is of particular benefit. For example, it has a number of partners that are very active in Canada and North America. “One partner of ours is very experienced in implementing Oracle solutions across industries in Canada, and North America, so they can anticipate issues before they occur,” says Bloch. “For example, in the US there is a new accounting standard called ASC 606 which governs revenue w w w. g i g a b i t m a g a z i n e . c o m

ORACLE

“I am so excited about the wealth and the breadth of the capabilities we are bringing to market” – Dan Bloch, Vice President, Diversified Industries, Financial and Supply Chain Solutions

recognition and deferred obligations in customer contracts, similar to the IFRS 15 requirement. Given this particular partner’s expertise in auditing, they can anticipate the needs to collect contract level information during an ERP or supply chain implementation and make the appropriate design considerations up front to satisfy this accounting requirement.” Again, this is something that differentiates cloud from on-premise solutions, he says. “On-Premise software brings with it a greater J U LY 2 0 1 8

burden, in resources and cost, of customisation and upgrading. To that extent its benefits are short term. In contrast, while the Oracle Cloud does permit extensive configuration and even the development of extensions, it does not allow the customer to customise. This is a good thing. While customers typically go through some change management to use the software the way it is designed, this ultimately that puts them in

CANADA

a highly sustainable place and at a much lower cost. It allows them to standardise whatever they can and still to differentiate in the areas they need to â&#x20AC;&#x201C; those areas that really create the identity and differentiation of their business. And most importantly, it allows then to continuously receive new capabilities and innovations without the need for complex and costly upgrades. â&#x20AC;&#x153;I am so excited about the wealth and the breadth of the capabilities we are bringing to market and the potential impact we can have on the Canadian

market. That we have Canadian data centres to provide these services will allay any concerns around data appropriation. We can service customers of every size and complexity. And we can help customers standardise and differentiate what makes their companies and products unique. I never want to suggest that we have all the answers. We are always in partnership with our customers, who are our best teachers. We love their feedback.â&#x20AC;? w w w. g i g a b i t m a g a z i n e . c o m

INSIDE THE DIGITAL JOURNEY OF PLAINS MIDSTREAM CANADA WRITTEN BY

LEILA HAWKINS PRODUCED BY

TOM VENTURO

Plains Midstream Canada (PMC) has an extensive network of pipeline transportation, terminals, storage and gathering assets strategically located in key crude oil and NGL producing basins, transportation corridors, and at major market hubs in Canada and the United States. PMC has embarked on a digital transformation roadmap to help them prioritise new business capabilities and achieve operational excellence

PLAINS MIDSTREAM CANADA

192

ormed in 2001 with just 130

strategy team can look at the

employees, Plains Mid-

business holistically instead of

stream Canada (PMC) has

just focusing on a singular aspect,

grown to over 1,400 employees and

such as implementing new tech

provides oil and gas transport and

solutions. “Rather than having

storage solutions across Canada

that quite narrow tactical discus-

and the United States. The compa-

sion with the business around

ny’s network of pipelines along with

software for instance, we engage

a fleet of truck trailers and railcars

them in business terms, better

provide oil and gas producers with

understanding their needs and

flexibility for transporting crude oil

desired outcomes before analys-

and natural gas liquids products link-

ing how to positively affect a

ing petroleum producers with

change to support them. In effect

refiners and other customers.

we’re acting as that internal tech-

The organisation is currently in the

nology broker, working with the

midst of a five-year digital transfor-

business to address their prob-

mation plan to drive improvements

lems by creating new business

to business processes, improving

capabilities. Sometimes our aim

the use of its existing technology or

is merely digitally enabling what

introducing new digital technologies.

we have, but we are absolutely

To design and enact this, the com-

planning for digital optimisation

pany brought in Chris Leonard, a

and transformation.”

Senior Business Strategist who is

“Not everything on our road-

now their Director of Strategy and

map is about introducing

Digital Transformation. In his words,

technology,” Leonard continues.

he and his team “plan the right work

“Often we’ve discovered that a

at the right time.”

review and improvement of exist-

The roadmap to digitisation is underpinned by a triad of people, process and technology improvements which means the digital J U LY 2 0 1 8

ing business process is just as valuable.” However, he adds that they are looking at planning initiatives to

CANADA

BIO

Chris Leonard immigrated to Canada with his family in 2012 after a very successful 20 year career as a commissioned Officer in the British Army. His aim was to join Corporate Calgary where he hoped to employ his previous strategic planning and operations experience. A brief spell working at the main Syncrude site in Alberta’s oil sands was a prelude to working for Brion Energy back in Calgary. Leonard subsequently joined Plains Midstream Canada in the Summer of 2015 to lead the Strategy and Digital Transformation team within IS, working directly with the CIO. Over the past three years he and a growing team have helped establish a comprehensive Digital Transformation Roadmap which will lead Plains Midstream Canada into the Digital era. As he openly admits, he is not a technologist by background, but is finding the challenge of matching new technologies to business problems and a fascinating area of longterm interest.

“We partnered with leading industry experts from Sapient, Microsoft and IBM and to look at how best to plan our work, to realize our strategic goals and focus on business needs” — Chris Leonard Director of Strategy and Digital Transformation add new digital assets to the business in the long term. For instance, they are looking at combining technologies such as digital twins, augmented and mixed reality, and the internet of things (IoT). “Being responsible for both OT and IT enables us to look at the whole picture, applying an IoT lens to the SCADA world for instance,” says Leonard. Leonard has also created a strong governance structure that uses analytics to support these strategic goals, which has led to a significant rise in capital investment for Information Services (IS) led programs. “It’s great having that long-term vision and roadmap, but unless you’ve got that governance to really help you prioritise what work you’re capable of doing first, it’s very difficult to see the wood for the trees,” Leonard says. w w w. g i g a b i t m a g a z i n e . c o m

193

PLAINS MIDSTREAM CANADA

“There’s always more work than there are

provide assessments and analy-

means to complete it. We’ve got to ensure

sis on power consumption data at

we’re prioritising the right work at the right

PMC facilities and pump stations

time, and that’s inextricably linked to our dig-

which will reduce overall con-

ital transformation roadmap.”

sumption and improve utilities

He envisions that PMC’s digital transforma-

194

management – we’re really quite

tion and partnerships with strategic vendors

excited about that.” Through the

will result in significant cost savings. “We part-

work they have done with Sapient

nered with leading industry experts from

to introduce a comprehensive

Sapient, IBM and Microsoft to leverage global

Energy Trading and Risk Man-

expertise and capitalise on other industry

agement capability, they also

applicable use cases with a view to help

expect to pay significant divi-

accelerate the realisation of our IS strategic

dends. “Working with partners

goals to drive enduring business value. Our

such as Sapient allows us to lev-

Power Utilization adviser for instance, which

erage different industry expertise

we’re co-developing with IBM Watson, will

and apply it to our unique circum-

J U LY 2 0 1 8

CANADA

stances. It really does become a

environment in the communities where PMC

partnership where strategic ven-

operates, digitising safety plays a key role.

dors help us to address focused

Another key initial development with the IBM

business needs.”

Watson program is the production of a Safe

It is also going to be beneficial

Work advisor. PMC is now using data analyt-

for training staff on the systems

ics to assess and leverage as a tool for their

the company already uses.

safety teams to expand upon and help

“Process efficiencies go hand-in-

improve safety performance. PMC will be able

hand with introducing new digital

to move from descriptive analysis to predictive

technologies,” says Leonard.

analytics to better prevent potential incidents. The company is also looking at future wear-

DIGITISING SAFETY

able technologies and how they could be

Safety is a core value at PMC,

used. Live information feeds could help on-

and as the organisation strives for

site workers by helping manage potential

protection, security and safety of

hazards through real time information sharing

employees, the public and the

without having to communicate via a radio.

1,400+ Approximate number of employees

w w w. g i g a b i t m a g a z i n e . c o m

195

“ Advanced analytics might be able to provide greater business intelligence but existing business models and how people do business also need to change” 196

— Chris Leonard Director of Strategy and Digital Transformation

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CANADA

197

w w w. g i g a b i t m a g a z i n e . c o m

PLAINS MIDSTREAM CANADA

2012

Year founded

COMMODITIES At Sapient Consulting, we combine our business and digital transformation expertise with a deep understanding of how industries operate to drive innovative solutions for your business.

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DIGITAL TRANSFORMATION CONSUMER ENGAGEMENT REGULATORY REPORTING COMPLIANCE DATA MANAGEMENT ANALYTICS & VISUALIZATION

Across oil & gas, utilities & energy, retail, agriculture & processed foods, we help your business refine its strategies, from optimizing trading and risk management to innovating digital customer engagement. LEARN HOW SAPIENT CAN HELP, VISIT: www.sapientconsulting.com

617-621-0200 info@sapientconsulting.com

CANADA

Leonard explains further: “We’re looking to

PMC is now working on a capa-

exploit existing technologies that can read the

bility called “Unified Stakeholder

environment an employee is in, whether they

Management” to pass crucial

have maybe been exposed to a particular

time-sensitive safety information

chemical, or whether an individual is showing

onto all stakeholders.

signs or symptoms related to abnormal stress by measuring heart rate or even if that individ-

ROADMAP TO THE FUTURE

ual is still upright or on the ground, which

Looking ahead, one of the main

might indicate a slip, trip or fall. The technol-

challenges for the industry will be

ogy is creating better situational awareness

adapting to change. “Nobody

without encumbering the individual to manu-

really likes change,” Leonard

ally provide regular updates and reports.”

says. “Advanced analytics might

PMC is also focused on stakeholders and is

be able to provide greater busi-

committed to maintaining strong relationships.

ness intelligence but existing

With operations that span across Canada and

business models and how people

the United States, the effective management,

do business also needs to

tracking and dissemination of information to

change in order to properly real-

their many stakeholders is vitally important.

ise the untapped value w w w. g i g a b i t m a g a z i n e . c o m

199

PLAINS MIDSTREAM CANADA

“ It’s a great time to be part of that journey, strategising and planning the right work to effectively allow an organisation to take advantage of Industrial Revolution 4.0” 200

— Chris Leonard Director of Strategy and Digital Transformation

J U LY 2 0 1 8

CANADA

technology can provide. Just throwing smarter technology at problems does not in itself create digital transformation.” Another challenge is the scarcity of skillsets, with a shortage of data scientists and digital security specialists in particular. However, Leonard believes this presents an opportunity for organisations to work more closely with academic institutions, helping them to tailor their programs to meet the emerging needs of businesses through the next industrial revolution. The major disruption is yet to happen, as Leonard explains: “The big digital disruption in oil and gas will come when someone figures out how to monetise assets without actually owning them, in the same way Uber monetises the cab without owning it.” He sees PMC as planning to take advantage of digital opportunities in the next decade. “I think our holistic digital transformation roadmap will ensure we’ve invested optimally in the right technology to effectively solve the right business problems and create new business capabilities. I also think we’ll be sufficiently mature in our digital strategy and planning to take advantage of future opportunities created by digital disruption in the midstream segment.” On the whole it’s an exciting era for Plains Midstream Canada. “It’s a great time to be part of that journey, strategising and planning the right work to effectively allow an organisation to take advantage of Industrial Revolution 4.0. These opportunities don’t come around on a frequent basis.” w w w. g i g a b i t m a g a z i n e . c o m

201

F o r e v e r On .

T5 CONSTRUCTION SERVICES:

The data center experts AS A PROVEN EXPERT IN THE RAPIDLYEXPANDING DATA CENTER FIELD, T5 CONSTRUCTION SERVICE IS FINDING ITS TURNKEY OFFERING IN HIGH DEMAND

WRITTEN BY

JAMES HENDERSON PRODUCED BY

TOM VENTURO

T5 CONSTRUCTION SERVICES

ith the proliferation of high speed networks and information exchange, the data center market is on the crest of a wave. If a recent report is to be believed, the data center infrastructure market is expected to surpass $90bn in the next six years with new technology driving demand.

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T5: An introduction In addition to delivering first class data center facilities as a landlord, T5 Data Centers has become a proven expert in building data center facilities via its construction division T5 Construction Services, LLC (T5CS). T5CS excels at various service offerings: Turnkey data hall projects; data center upgrade/ expansion projects; equipment procurement; and project management and consulting. T5CS’ expertise allows them to execute with regards to design, equipment procurement, construction, start-up and commissioning, security implementation, successful J U LY 2 0 1 8

integration, and turnover to the facility management team. Put simply, building and operating data centers is T5’s core competency. T5’s ability to perform projects in a turnkey manner allows their clients to focus on their core businesses. “We view ourselves as an extension of our client’s staff. We understand what its like to be an owner/end user, because we are one. As a landlord, we tailor our design to meet the needs of our client. We take the same focus when our construction service group performs turnkey construction projects. Our goal is to customize the right solution for our clients,” says Robbie Sovie, Senior Vice President, Development, for T5 Construction Services The message from T5 to its clients – many of which are Fortune 500 companies – is a simple but effective one: “Let us build the data center you’d like to build yourself”. To deliver on such a personal pitch requires extremely close collaboration between client and contractor.

T5CS’S SERVICES

USA

TURNKEY DATA HALL PROJECTS Delivering turnkey data hall design/construction projects on schedule and under budget. The turnkey delivery model allows T5 take leadership for the entire project and proactively implement a solution that truly works for the customer.

DATA CENTER UPGRADE/EXPANSION PROJECTS T5 has experience in managing a construction project in a “live” data center environment. The company collaborates with the facility management team to implement a solution that works for both construction and operations.

EQUIPMENT PROCUREMENT T5CS has strong relationships across the equipment vendor industry, and believes these relationships are attributable to our success because buying power helps garner the best possible costs per unit and the best lead times available to the market. By utilizing these relationships, T5 has successfully procured equipment to enhance construction schedules, while also saving costs for the customer.

PROJECT MANAGEMENT/CONSULTING T5 offers project management and consulting services for enterprise data center projects. It has proven expertise in the overall leadership/ management of due diligence, design, contract procurement, construction procurement, preconstruction, project delivery, closeout, and handoff to facility management team. w w w. g i g a b i t m a g a z i n e . c o m

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Uptime is everything—

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USA

“A lot of companies will say they want to become partners to their clients but T5 truly means it,” says Sovie. “We sit across the table from our clients and look them in the eye to understand exactly what it is they want, and then we strive to achieve that. We challenge our team to build those relationships because they result in the best projects. One team, one dream, let’s make it happen – that’s the approach.” Similarly, T5 values its relationships with equipment vendors. T5’s vendors are critical to its success. “As owners we purchase equipment in scale,” says Sovie, “so we have purchasing power. We’ve developed healthy relationships with a group of vendors who have proven their ability to pull a rabbit out of a hat for us when we need them to. When you can call some of the big players and say ‘we need a generator in three months’ and they figure out a way to make that happen, it’s huge.”

“ WE’VE DEVELOPED HEALTHY RELATIONSHIPS WITH A GROUP OF VENDORS WHO HAVE PROVEN THEIR ABILITY TO PULL A RABBIT OUT OF A HAT FOR US WHEN WE NEED THEM TO” — Robbie Sovie, Senior Vice President, Development, for T5 Construction Services TalkTalk

How T5 operates T5CS thrives because its foundation is strong. T5CS’s ability to execute on five core principles is key to its success: SAFETY: Adherence and execution of strict safety process and procedures w w w. g i g a b i t m a g a z i n e . c o m

207

USA

is one of T5’s core focus points. Maintaining a positive safety record is critical to T5CS, which has a Zero Accident Objective across all our projects. PROCESS & PROCEDURE: Details, details, details… executing on the process and procedures is not just busy work for T5CS. The company understands that being detailed and diligent with process and procedures is critical to success. Its processes and procedures are utilized at every level of projects: design, preconstruction and bid levelling, construction delivery, start-up and commissioning delivery, security integration, completion and closeout, etc. COMMUNICATION & COLLABORATION: Effective communication and collaboration is critical to a successful project. “We want our clients to enjoy the construction experience,” adds Sovie. As an example, T5CS uses a CFD analysis (Computational Fluid Dynamics) to analyse IT loads within a data hall. T5CS collaborates with clients on the

most optimal data hall design based on what the CFD analysis presents. “The CFD model is important when clients are trying to maximise their output in terms of killowatts. It shows us where we need to contain temperatures via containment, chimney, or other design measures,” says Sovie. As part of its service offering, T5CS is adept at data center upgrade programs and expansion projects, where it has to undertake mission critical work in the ‘live’ environment. Once again, collaboration is crucially important, says Sovie: “I think our track record with working on live projects is a major reason why clients come to us. That’s more the reason they use us. You simply have to collaborate with the facility group, so that you’re going through maintenance procedures step-by-step; you’ve got to do ‘A’ before you do ‘B’ to get to ‘C’, so we stick rigidly to that. Added to that, it’s a question of the correct competences and skills for the job, and our team has that.”

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T5 CONSTRUCTION SERVICES

Founded in

2008

USA

PROJECT FOCUS T5 data centers owns and operates data centers in all of the sector’s most important markets, including Dallas, LA, Atlanta, Portland, Charlotte, Ireland, Chicago, and New York. Here are a few of the company’s most recent project highlights, including its entrance into the European market… T5@ATLANTA II T5 Data Centers recently finalised the purchase of a new 40-acre property in Douglas County as the location for T5@Atlanta II, the company’s second data center in the Atlanta region. The land acquisition marks the first step in the construction of a new 130,000-square-foot data center, purpose-built to meet the needs of hyperscale enterprise customers. When it is completed, the T5@ Atlanta II data center will feature 10 MW of critical power load and 66,667 sq ft of white floor space. T5@IRELAND The new T5@Ireland Facility, is located just five miles from Cork City and stationed conveniently over a global IP transit hub to keep you connected to North America and mainland Europe. The five largest fibre providers in Ireland will provide a direct connection to the campus, that is built with future expansion in mind. T5@DALLAS III In October last year, T5 Data Centers completed construction on the state-ofthe-art T5@Dallas III on its Plano data center campus. The new greenfield, purpose-built data center is tenant ready and offers the same robust construction as the balance of the T5@Dallas campus, including a dedicated data center support team. The T5@Dallas campus is located in Plano’s Legacy Business Park. The T5@Dallas III facility is a LEED Silver certified, concurrently maintainable data center with 94,400 sq ft of available data hall space and 10.75 MW of critical power. T5@CHICAGO In March of this year, T5 Data Centers completed construction on the stateof-the-art T5@Chicago located in Elk Grove Village, IL. The new purpose-built data center is tenant ready and offers the same robust construction as the balance of other T5 facilities, including a dedicated data center support team. The T5@Chicago facility is a LEED Certified, concurrently maintainable data center with approximately 70,000 sq ft of data hall space and 10 MW of critical power. w w w. g i g a b i t m a g a z i n e . c o m

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Nationwide Landscape Civil Engineers Architectures Planners Mission Critical Specialist: Hugo Morales, P.E. hugo.morales@kimley-horn.com 817.339.2294 | 469.288.3185

Mission Critical Specialist:

“WE UNDERSTAND THAT ‘LIVE PRODUCTION’ DATES CAN BE THE DIFFERENCE IN SUCCESS VS. FAILURE FOR OUR CLIENTS. WE MANAGE THE CLIENTS SCHEDULE EXPECTATIONS AND IS IF WERE OUR OWN SCHEDULE” — Robbie Sovie, Senior Vice President, Development, for T5 Construction Services TalkTalk J U LY 2 0 1 8

BUDGET ADHERENCE: Focusing on the project budget is critical to T5CS because its critical to our client. As an owner and end user, T5 understands what it means to manage a budget from a client’s perspective. “We manage the client’s budget as we would manage our own budget,” Sovie says. SCHEDULE ADHERANCE: Just like the budget, schedule is important for various reasons. “We understand that ‘live production’

USA

WHY PARTNER WITH T5 CONSTRUCTION SERVICES? | T5 DATA CENTERS

Forever On .

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dates can be the difference in success vs. failure for our Clients,” Sovies explains. “We manage the clients schedule expectations and is if were our own schedule.” As somebody working at the epicentre of the data center space, Sovie says he is “unsurprised” by the prediction that the value of the market will surpass $90bn by 2024, pointing out that just around half of the world’s population have internet access. “There are billions of people who at some stage will get that access, so when you take that

into consideration alongside ever evolving technology, whether that be IoT or AI, it’s going to drive a lot of further capacity. You have to also consider that some of the older generation are not too tech-savvy, which is not going to be the case with generations to come. It’s just kind of natural evolution so unless servers get way more efficient that demand for data center space is just going to increase.” As is, you’d expect, the demand for proven experts in the data centre construction field. w w w. g i g a b i t m a g a z i n e . c o m

ALEXANDER FORBES

A DIGITAL JOURN TO DELIVER FINAN TO CUSTOMERS 214

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NEY NCIAL FREEDOM Group Chief Executive Officer Andrew Darfoor highlights how Alexander Forbes remains committed to the digital customer experience WRITTEN BY

CATHERINE STURMAN PRODUCED BY

JUSTIN BRAND

w w w. g i g a b i t m a g a z i n e . c o m

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ALEXANDER FORBES

isted on the Johannesburg Stock Exchange (JSE), specialised financial services group Alexander

Forbes provides retirements, employee benefits, health, wealth management, asset management and insurance solutions to institutional and retail clients across seven jurisdictions in Africa. To drive its expansion across the continent, the company is undergoing a significant transformation under its new Group CEO. Titled Ambition 2022, its new growth strategy aims to transition Alexander Forbes to be a leading pan-African financial services organi216

zation, delivering the right outcomes to shareholders and clients. Its strategic anchor will help customers achieve financial freedom and a lifetime of financial well-being. “We are a trusted brand and we are building a great place for our employees to work, where they feel they’re having a social impact,” observes Group Chief Executive Officer, Andrew A. Darfoor. “We want to have a bigger social impact across our markets. For instance, in our home market of South Africa, only 6% of South Africans can retire with any level of certainty or dignity, which by default means 94% can’t. That’s entirely unacceptable,” he explains. “We therefore want to work with more people, both corporates and individuals to J U LY 2 0 1 8

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ensure that both employers and employees can work smarter to ensure that employees can reach retirement stage having much more set aside.” With this in mind, Darfoor notes that unlike developed countries such as the UK and the US, individuals gain access to their entire pension pot in one lump sum once they leave their employer in South Africa, providing minimal financial incentives for many to preserve. “Most people cash that money and then spend it. We therefore want the preservation rate to be as high as possible such that when people move from employer to employer, we can preserve the assets they have accumulated,” he says. “There are a number of social impacts, particularly around retirement, that we’re absolutely focused on in terms of having a much more social impact in our markets.” Responsible for driving Alex-

Inside Alexander Forbes head office in Sandton

ander Forbes’ strategic anchor, Darfoor strives to support corw w w. g i g a b i t m a g a z i n e . c o m

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ALEXANDER FORBES

Inside Alexander Forbes head office in Sandton

We believe in being a proactive force for positive change

A local, data-led, customer-centric approach to digital transformation

Creating unique, data-led customer experiences

Founded by Africans working for Africa

With you from strategy to execution to beneďŹ t

T UL

L NO

Getting the job done with

Getting the job done, with you

For more visit www.bsg.co.za

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porate businesses and individuals to provide

customers better services and

employees with an integrated platform,

solutions,” he says.

encompassing retirement solutions, pen-

“We want a single view of cus-

sions, savings and employee benefits. In

tomers and then aggregate that

addition, the company provides exceptional

single view to drive more impor-

financial advice through a broad range of

tant decisions through data

solutions within savings, asset management

analytics. So, AI and data ana-

and more.

lytics are fundamental to our

“We want our clients to make smarter financial decisions and we have these broad range of solutions,” says Darfoor. “Whatever clients need financially, we’ve

future business model.” With a long-term goal to shift its customer relationship from payer to partner, Alexander

got it. We partner with clients to help them

Forbes is fully committed to

make smarter financial decisions, whatever

becoming part of its customers’

stage of life they’re in or whatever corporate

life journey.

they’re in to drive the right outcomes.”

ENHANCING THE CONSUMER BUSINESS Investing over R1bn ($76m) to upgrade and strengthen its digital infrastructure, the largest single capital investment commitment in its 83-year history, Alexander Forbes intends to overhaul the way in which it engages with customers across its operations, spanning products, sales and the solutions provided to individuals to enhance the customer journey by making it more digital. “We’ve got access to the entire portfolio of an individual. The question is how we then use this information to drive predictive analytics to better price and offer

“ WE ARE A TRUSTED BRAND AND WE ARE BUILDING A GREAT PLACE FOR OUR EMPLOYEES TO WORK, WHERE THEY FEEL THEY’RE HAVING A SOCIAL IMPACT” — Andrew Darfoor , Group Chief Executive Officer

w w w. g i g a b i t m a g a z i n e . c o m

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ALEXANDER FORBES

“It’s entirely different if you think that the relationship is where my financial services partner can help me make smarter decisions that in turn

based systems is therefore essential.” However, this has not been without its challenges. Regarding cultural biases, where many

help me reach the right out-

markets consider insurance as a luxury item,

comes. This simply gives you a

Alexander Forbes aims to inform its custom-

more in-depth perspective

ers’ view to one which where financial

much more than you could do

solutions are repositioned as an essential

by yourself,” adds Darfoor.

part of protecting what is important to them.

“The journey for somebody

“I also often say that our biggest competitors

who’s a millennial is also going to

in many markets are fast moving consumer

be entirely different in terms of the

goods companies,” explains Darfoor.

journey of somebody aged 55 220

right technology including CRM and cloud-

and above. “We use these insights to

“It’s a lot easier to go and buy the latest iPhone or flat screen TV rather than put that money towards pensions, savings or

determine the type of advice and

retirement. It’s largely a question of

solutions that are most appropri-

education, intervention, and improving

ate for your journey. Having the

awareness. We’re trying to change behav-

BIO

Andrew Atta Darfoor was appointed as Group Chief Executive of Alexander Forbes Group Holdings on 1 September 2016. Under his leadership, the business has defined a new ambition titled “Ambition 2022” for the organisation with a focus on becoming a globally distinctive panAfrican financial services leader with an integrated model supported by technology enablement. J U LY 2 0 1 8

Darfoor is an experienced financial services leader with a successful 20 years plus track record of bringing bold vision and all-encompassing strategic planning to international next-stage business growth, re-invention and turnaround challenges in the financial services sector across multiple continents including North America, Europe, Asia and the Middle

AFRICA

iours to drive the right financial outcomes. “The level of financial literacy is relatively low in many markets we operate in. So half the battle is improving financial awareness and education to then have a discussion around what’s right for individuals, based on the outcomes they want to achieve.”

MULTI-CHANNEL ADVANTAGES Partnering with Israeli technology giant Sapiens and FIS, a US based global

221

provider of financial technology solutions, Alexander Forbes has sought to modernise

East. Previously, he was Chief Executive Officer at Sun Life Financial International, a division of Sun Life Assurance Company of Canada, leading a division providing life insurance, protection, savings and wealth management solutions across 50 countries in Asia, Middle East and Africa, Europe and the Americas.

Prior to this, Darfoor held a number of senior leadership roles at Old Mutual plc, where he was President and Chief Executive Officer of Old Mutual (Bermuda) Ltd. He previously held international management positions focused on strategy and business development at Credit Suisse AG, UBS AG and Ernst & Young LLP. w w w. g i g a b i t m a g a z i n e . c o m

ALEXANDER FORBES

its retirement, retail and digital platforms, spanning pensions administration, book-

tionship with learning, the

keeping and recordkeeping.

organisation has partnered with

“We’re trying to get to the stage where an

online learning platform Degreed

employee can look at their benefits, their pen-

to launch a new business, Alex-

sions, contribution amounts, online, and then

ander Forbes Empower, to

see whether they’re on the right path to

customise its content for the

achieve the outcome they want,” says Darfoor.

benefit of staff members as

Microsoft has also been brought on board,

well as offer this platform to

where the implementation of Microsoft Dynamics software has enabled the business to aggregate its customer data and build an online portal. Taking on board the importance of engag222

Encouraging a lifelong rela-

ing with customers on any device they wish to use, from face-to-face, digital or online, modernising its digital infrastructure to support its future growth has led to an improvement in the client experience, but also optimised Alexander Forbes’ ongoing costs. “We plan to serve our clients more efficiently, more effectively at a lower cost whilst maintaining our ability to interact with them through whatever channel or media or device they want,” adds Darfoor.

INVESTING IN THE FUTURE Whilst Alexander Forbes has stressed the importance of its digital transformation, the company would not be where it is today without its employees. J U LY 2 0 1 8

corporate customers.

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223

“ WE PARTNER WITH CLIENTS TO HELP THEM MAKE SMARTER DECISIONS, WHATEVER STAGE OF LIFE THEY’RE IN OR WHATEVER CORPORATE THEY’RE IN TO DRIVE THE RIGHT OUTCOMES” — Andrew Darfoor , Group Chief Executive Officer

w w w. g i g a b i t m a g a z i n e . c o m

ALEXANDER FORBES

“If staff are interested in a specific area, they can go online and have access to that content. For us in the business, we can also push content and link it through a report. It becomes one additional channel of encouraging a lifelong relationship with learning to our workforce,” states Darfoor. “We think this is critical and believe that 60% of the skills in the workforce today will, quite frankly, be irrelevant in 10-20 years’ time. So, the ability to rein224

vent, re-learn, to have that passion for evolving your skillset, I think is going to be critical in the workforce of the future. “We’ve also now started to offer our online internal platform to some of our clients.” Not one to rest on its laurels, the business has also placed significant focus on its corporate social responsibilities, which Darfoor states is not only ‘the right thing to do,’ but is also a great ‘recruitment tool.’ “Millennials are placing a great deal of emphasis on the company they work for having a J U LY 2 0 1 8

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social impact as it’s cool for them to talk to their friends and their communities around what the company’s doing,” he says. “We have accelerated our engagement around social initiatives and embedded this through to our business model. We are also engaging much more with universities and have developed a graduate development programme in collaboration with a number of leading universities. We are also stepping up what we do in our communities much more actively than we’ve ever done before. Whilst Africa continues to be a growing continent in terms of GDP growth, the discussion around financial awareness, as well as various financial products and solutions, remains an essential area of focus for Alexander Forbes in its ambition to remain a leader in the African financial services market. “The business is on a transformation journey and we’re on that journey to build a leading pan-African business,” concludes Darfoor. “We believe technology is a key component but, ultimately, we’re trying to change behaviours to ensure more people can retire with dignity.”

Alexander Forbes head office in Sandton w w w. g i g a b i t m a g a z i n e . c o m

225

MOZABANCO

226

Moza Banco: The preferred bank of Mozambique J U LY 2 0 1 8

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227

WRITTEN BY

LAURA MULLAN PRODUCED BY

JUSTIN BRAND w w w. g i g a b i t m a g a z i n e . c o m

MOZABANCO

228

THE AFRICAN BANKING SECTOR IS A HOTBED OF INNOVATION. IN MOZAMBIQUE, MOZA BANCO IS DRIVING FINANCIAL INCLUSION WITH ITS CUTTING-EDGE DIGITAL STRATEGY frica has the secondfastest growing banking market in the world, according to a report by Kinsey, and it seems the story is no different in Mozambique. Championing services like mobile money solutions and agent banking, one of the countryâ&#x20AC;&#x2122;s leading commercial banks,

J U LY 2 0 1 8

Moza Banco, has strived to offer affordable, instant and reliable financial services to both urban neighbourhoods as well as rural villages, areas where no bank may have ever established a branch before. Looking forward, the 10-yearold bank has big plans for the future but none outshine its

AFRICA

“Most of the population don’t have bank accounts and so part of our strategy is to reach this demographic through alternative services from what is provided in this market. By offering services like agent banking, mobile banking and other financial facilities we aim to create a genuine relationship with our clients and make Moza Banco their preferred bank of choice.” The African banking sector is a hotbed of innovation and Moza Banco is no exception. Sansão Monjane, Head of Information Technology and Systems, believes the way in which Moza Banco adopts unique innovations and business approaches helps to distinguish it from its competitors. commitment to be the nation’s preferred

“We do our best to ensure we

bank of choice and to promote financial

are also at the cutting-edge of

inclusion.

technology and that our services

“Moza Banco isn’t focused on being the

are available to everyone at their

biggest bank in terms of size or its number

time of need,” Monjane explains.

of clients but is focused on establishing

“We take a different approach

its place as the country’s preferred bank,”

compared to the other banks in

explains Espírito Santo Monjane Jr.,

Mozambique and this helps to

Deputy Director of Information

differentiate our services

Technology and Systems.

from the others. w w w. g i g a b i t m a g a z i n e . c o m

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MOZABANCO

Espírito Santo Monjane Jr. Deputy Director of Information Technology and Systems

230

Espírito Santo Monjane Jr. is 30-year-old professional who has worked in the banking industry for nearly eight years, five of which at Moza Banco. Having studied Computer Science, Monjane Jr. started his career working for a small startup, AfriSis Lda., as a programmer, developing projects for municipal departments and district governments thus following his passion for software development. His first experience in the banking industry came from BCI, in 2010, also as a programmer, where his main focus was developing user interfaces for their business process automation.

Sansão, Monjane Head of Information Technology and Systems Sansão Monjane is a young Head of IT in one of the most promising banks in Mozambique, with a team of 45 people that ensures the the maintenance and evolution of Moza banco IT systems, that includes infrastructure and all applications and IT related services. With a degree in Journalism, Monjane was always passionate about the IT world, which lead him to work in reputable companies in the market, such as Intercampus from Growth from Knowledge (GFK) Group as IT Manager. In 2012, Monjane joined the banking sector as an IT technician, and since then has rose through the ranks to his current position.

J U LY 2 0 1 8

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w w w. g i g a b i t m a g a z i n e . c o m

MOZABANCO

“That’s why we’ve been awarded

we are pushing it further through

as the most innovative Southern

more agents across the country.

African bank for the African Banker Magazine for two years in

in the market without having to

a row,” he adds. “In essence,

put a traditional branch at every

we always try to innovate to

site. We believe it is the most via-

make sure that we are

ble solution for growth going

enablers in the market.”

forward and it is also in line with

One way in which the Mozam-

more people into the financial

sector is through its use of agent

system, which is a big issue in

banking, whereby a banking

Mozambique, and in Africa as a

agent – that is a retail or postal

whole.” “Like many other developing

actions on behalf of the bank.

countries, the infrastructure in

Launching the first banking

Mozambique is challenging,”

agent in Mozambique around three years ago, Monjane Jr.

adds Monjane. “We don’t have the means to

believes this cogent strategy has

get to remote places. If you have

been a roaring success.

a branch in a remote place, you

“Right now, we are pushing

have higher costs of transferring

aggressively towards agent bank-

money to those places, higher

ing, whereby we partner with

costs of maintenance for the

some commercial entities so that

branch, and higher costs for

we can provide banking services

the employees. That’s why

all over the country,” he explains.

with agent banking, you can

“We are going outside the urban areas to rural markets where people want to trade cash.

J U LY 2 0 1 8

the country’s strategy to include

bican bank is making waves in the

outlet – processes clients’ trans232

“It’s an alternative way to grow

reach this slice of the population in a much easier way.” The financial landscape is

We were the first to make that

changing rapidly and perhaps

happen in Mozambique and now

one of the most notable trends is

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233

the emergence of application

leading disruptors in the market,

programming interfaces, better

this is a trend which Moza Banco

known as APIs.

has been keen to tap into.

Located at the heart of open

“We are in an area of Mozam-

banking, APIs are open source

bique where a lot of people are

technologies which allow fintechs

introducing new technologies,

and third-party developers

new solutions, and enabling new

to build financial applications

areas of the market,” notes Mon-

on top of the bank’s existing

jane. “In IT, our strategy is to

IT infrastructure.

partner with those entities and

By ‘opening’ up the banking

make our banking services

sector, the introduction of APIs

available through alternative

allows third-party developers to

services and apps such as

create helpful services and tools

when you are paying your bus

that customers can utilise.

fare or shopping online.”

Partnering with some of the

To compete in Africa’s diverse w w w. g i g a b i t m a g a z i n e . c o m

MOZABANCO

“ BY OFFERING SERVICES LIKE AGENT BANKING, MOBILE BANKING AND OTHER FINANCIAL FACILITIES WE AIM TO CREATE A GENUINE RELATIONSHIP WITH OUR CLIENTS AND MAKE MOZA BANCO THEIR PREFERRED BANK OF CHOICE” — Espírito Santo Monjane Jr., Deputy Director of Information Technology and Systems

The best of ICT with a human touch Living in a mode that is “always-on”, and communicating within a society that never sleeps, Information and Communication Technologies are vital for every people and business activities. We imagine and deliver top-notch, scalable and sustainable solutions, with a human face and touch, at the heart of digital transformation. Axians is the VINCI Energies brand dedicated to ICT. We’re in 22 countries, with 9000 employees and revenues of €2 billion, in 2017.

AFRICA

235

financial market, mobile banking is a must. In the continent today, there are around 100mn active mobile money accounts, used by one in 10 African adults, according to

In 2014, ‘Global Banking and Finance Review’ named Moza Banco as the fastest-growing commercial bank operating in Mozambique in 2014.

data from McKinsey. “In Mozambique, around 5mn people have bank accounts yet 18mn people have a mobile phone. Therefore, mobile banking is a key way to get to non-banking clients in the country,” explains Monjane. By all accounts, it seems Moza Banco has an expansive portfolio on offer, and the firm shows no signs of slowing down its innovation. For instance, the bank recently introduced self-service kiosks so that people can pay their taxes or pay for government services with w w w. g i g a b i t m a g a z i n e . c o m

MOZABANCO

ease. But, despite this, the commercial bank is keen not to push technology on its customers. Instead, Monjane Jr. says the bank’s digital strategy is about meeting the capabilities of its clients to genuinely promote financial inclusion. “We’re trying to make the interface simple and intuitive so that it is easy to engage,” explains Monjane Jr. “We are taking what they know, something as simple as their feature phone, to provide services,” he continues. “As we reach people with more financial opportunities we can also offer applications for smartphones. 236

“Technology is everywhere, but we are adapting to the capabilities of our clients.

“If we digitise the money in the

We’re not forcing them to use a specific tech-

country, we don’t have to worry

nology. We’re not saying, ‘everybody should

about the cost of producing

have a feature phone or the cheapest smart-

paper money. For the bank, it’s

phone to use our services’. Instead, we are

just great for us, because we have

saying, ‘we understand might not have this

more clients, more business, and

technology so we will use what you have so

we have more projects to offer the

that you can have a relationship with us’.”

community. Then from a social

The underlying message behind Moza

perspective, it’s helping the econ-

Banco is one of financial inclusion. This is not

omy grow and it makes life easy

only important for the bank, it’s also vital for

for the everyday citizen.”

the country at large. “Financial inclusion can be viewed from two

A successful digital transformation needs a successful team

perspectives: it can be viewed as business for

to lead the way. At Moza Banco, it

Moza Banco, but it also has a huge social ben-

seems the firm’s young, highly

efit,” says Monjane.

skilled workforce is critical to its

J U LY 2 0 1 8

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the box and come up with solutions to the everyday problems we face inside and outside the bank. We are making a lot of effort to push the bank forward, to make ourselves better each day.” It’s an exciting time for Moza Banco. The firm has recently celebrated its 10th anniversary and from December to April the banking market grew around 5%. As such, Moza Banco remains optimistic about the future. “The banking sector is one of the most promising markets in Mozambique,” reflects Monjane. “I think that, like a lot of places in Africa, we have entered a new era of banking where we don’t have to follow traditional modsuccess. “At Moza Banco, we have a

els that were set up years ago. “In the next five to 10 years we expect Moza

shared belief that young people

Banco to be one of the top three banks in the

are critical in the banking sector,”

market for definite,” he adds. “We expect to

Monjane explains. “We invest a

be the preferred bank for our customers but,

lot in upskilling our staff and

most of all, we expect to contribute exponen-

sending people for training.

tially to the growth of

We invest a lot in enriching our

the country, because, doing banking in

personnel to keep them up

Mozambique isn’t just about business. It plays

to date with the latest

a huge social role.”

technology in the market. “In IT, in particular, we also understand that innovation is a key motivation. Aside from everyday work, we push people and push ourselves to think outside w w w. g i g a b i t m a g a z i n e . c o m

237

Z I M N AT

Zimnat

CONNECTING LIFE ASSURANCE TO THE FUTURE 238

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Zimnatâ&#x20AC;&#x2122;s Group Chief Digital Officer Tendayi Chirokote on the challenges he faced transforming the digital culture of the Zimbabwean life assurance company WRITTEN BY ANDREW PRODUCED BY JUSTIN

WOODS BRAND

239

w w w. g i g a b i t m a g a z i n e . c o m

Z I M N AT

consultant Tendayi Chirokote was working for African telco Telecel Zimbabwe when Zimbabwean insurer Zimnat tasked him with spearheading a digital transformation at the company. “I was working with Telecel Zimbabwe for about four years and before that Econet Wireless for about seven to eight years,” he explains. “Yeah, it was quite exciting coming up with a lot of mobile solutions: mobile money, money farming and mobile tracking, plus a lot of work integrating the Econet business into one ERP solution.” Insurance had become a dirty word across 240 the African continent since the economic collapse of 2008 had seen so many companies go to the wall. Needing to remodel the public’s perception of insurance, particularly when times were tough, led Zimnat to pursuing better communications both externally and internally. “Zimnat were in need of a digital transformation drive,” Chirokote explains. “They wanted to go into an omnichannel environment, driven digitally and I had experience of integration work, and a lot of experience from a digital product perspective.” In September 2017, Zimnat tasked Chirokote with looking at the current technological infrastructure, focussing on its J U LY 2 0 1 8

hardware and connectivity ahead of transforming the business over the following three to five years. “I took a good look at the IT space and recommended a strategy of how to structure and take the business from bricks and mortar to a fully digital environment. “The first area we looked at was the legacy technology, which was not at the level where the business needed to be. We put in place plans to modernise the

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“ The other challenge was that we wanted to reach out to customers who don’t live in the big cities, in areas that are virtually impossible to reach in a bricksand-mortar approach” — Tendayi Chirokote, Chief Digital Officer

241

technology and came up with a strategy of

digitise the work environment

how to continually modernise it over a period

itself, because it’s difficult for you

of three to five years.”

to expect somebody who oper-

The second stage of Chirokote’s work at

ates in a traditional work

Zimnat was to change the internal culture.

environment to deliver a digital

“How do we transform the culture of the busi-

experience to a customer.”

ness so that people start moving from a

Chirokote and his team started

bricks-and -mortar type environment, to staff

looking at ways of introducing

who were able to operate in a digital environ-

digital to Zimnat’s communica-

ment? So, we looked at the people and said to

tions internally to move from the

ourselves: ‘How do we train? How do we start

manual analogue to more digital

engaging the team?’ We did this before we

systems such as email communi-

started looking at our customers. We needed

cation, intranet-based messaging.

to start introducing technology internally to

The CEO, Mustafa Sachak, started w w w. g i g a b i t m a g a z i n e . c o m

Z I M N AT

a blog to maximise exposure to digital

platform. This has been so valuable for

communication. Changing communi-

our day-to-day operations in the busi-

cations internally was really important

ness especially when you start to alter

and a number of features were intro-

the culture of a company.”

duced that fully utilised the expertise of

With any change comes glitches

the workforce. “Every Friday, we would

and risk and there was some limited

all share global trends in terms of the

resistance to the internal changes to

insurance sector or learning. Our HR

workplace culture and protocol. “Staff

department introduced a digital plat-

started to raise the question: ‘Will I lose

form where people could share a growing

my job to the machine?’” Chirokote

knowledge base through our courses.

explains. “So, the challenge was to try

Now, instead of using physical man-

and give them confidence. ‘We want

uals they could actually download

you to move away from processing and

information as part of a digital learning

number crunching, as we actually need

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you to analyse our growing data and for making decisions on how we can improve the business.’” To reach more mass markets Chirokote’s team analysed how Zimnat handled its distribution chain as there were obvious limits to a purely bricks-and-mortar approach when you’re aiming to reach mass market business. “We wanted to see if the products needed to change shape. Would they continue to be the same products while in a mass market environment? “Instead of the staff sitting back and waiting for the rollout of this

“ We wanted to see if the products needed to change shape. Would they continue to be the same products while in a mass market environment?” — Tendayi Chirokote, Chief Digital Officer

243

big monster we identified some small ways in which people could actually see some of these digital processes in place. One of the projects we introduced was analytical. We pulled data from all the different systems, created dashboards around it and put some geographical context to the data. This encouraged people to spend more time analysing the paying behaviour, trends and distribution of customers. This relaxed the working environment, as staff w w w. g i g a b i t m a g a z i n e . c o m

Z I M N AT

were now looking at what the data actually meant.” Obviously with increased harvesting and analysis of data comes issues of cybersecurity. Chirokote introduced a number of preventative measures. “The first thing we did was to call in PricewaterhouseCoopers, who did a security audit of our processes, systems, firewalls; the complete architecture. This took two to three months during which they 244

assessed the entire landscape. This outsider’s view of security was essential as it highlighted the

data and put in some standards around the

level we needed to be operating

password policies and internet usage to

at in terms of security.

secure a community where people were start-

“PwC gave us some level of

ing to exchange and move data. The email

comfort that we could actually

platform was also upgraded from an open-

start delving into the data issues

source model to Gmail, so we were essentially

once we had attended to the

outsourcing to an organisation that already

high-risk areas. We updated all

had security structures in place.”

the software updating systems to

The implementation of any new measures

current versions because that

can often cause temporary shifts in process

was a big vulnerability that we

times. Chirokote and his team witnessed

had. Then we updated our poli-

a slight drop in efficiency. “The tightening of

cies which related to a

the environment was now creating slowness

bricks-and-mortar environment.

in terms of productivity. They felt it was inhib-

We looked at the interchange of

iting the way they worked. We strengthened

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“ Our agents have said that whatever leads come through Facebook are experiencing a 90% closing rate” — Tendayi Chirokote, Chief Digital Officer

245

the password system for exam-

for this by introducing efficiencies.

ple and because people tended

“The digital transformation is currently nine

to forget their passwords, there

months old and so the effect on the bottom

was a lot of sharing, which was

line has not been observed just yet, although

now prohibited.

Zimnat’s reach has improved greatly. The dig-

“With regards to workflow, there

ital marketing side has really come up very

had to be checks and balances in

well, where we are probably reaching out to

place and you couldn’t start and

between 3-400,000 people in the last three

complete a process all by yourself.

months. In terms of leads, 10% of those are

So, all of a sudden you had to wait

leads we can actually chase. Our agents have

for another person to approve

said that whatever leads come through Face-

your work and the team generally

book are experiencing a 90% closing rate.

felt that this whole security busi-

It’s different from when you just knocked on

ness was making things slower.

a door. They now know that 90% of the leads

But the idea was to compensate

generated from the digital channel are likely to w w w. g i g a b i t m a g a z i n e . c o m

Z I M N AT

close, which is a massive positive for the business. “My role at the moment is preparing the technical space to be ready for the full speed digital, which probably won’t be for another 12 months.” Traditionally, Africa has experienced major problems with connectivity and geography proved a problem for Zimnat. “Connectivity has always been a problem here,” Chirokote says. 246 “The cost of data, for which I can

actually put to a physical product, is very expensive. You have to ask

and made sure that the digital side was fully

yourself how you can keep costs

employed into the insurance space.”

down for your customers. “But if you keep that cost down,

The millennials are the emerging target for many insurers but for many, as well as those

it reduces the business. So, we

older customers, there is a palpable distrust of

needed to come up with an opti-

insurers after the global economic collapse in

mum solution which wasn’t too

2008 which saw some companies defaulting

expensive. The other challenge

on their responsibilities.

was that we wanted to reach out

“I think the challenge for insurance compa-

to customers who didn’t live in

nies is to create a trust between them and the

the big cities, in areas that are

clients,” Chirokote continues. “Making an

virtually impossible to reach in

insurance sale is very difficult when there is no

a bricks-and-mortar approach.

trust. Because of the uncertainty politically in

We looked at other channels

the country, people would rather hold back

such as the mobile business

and see if things change before committing

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“ Millennials don’t feel that they are ever going to die! I think they are more risksavvy however and take a lot of chances” — Tendayi Chirokote, Chief Digital Officer

247

and so that has presented a chal-

using insurance as protector of that purchase.

lenge where our penetration rate in

Millennials don’t feel that they are ever going

insurance is down to less than 5%.

to die! I think they are more risk-savvy how-

“But we’re sticking to that

ever and take a lot of chances. I can see a

challenge and coming up with

situation where insurance would make sense

products which speak to the wal-

if you combined it to a saving or investment

let of all the potential customers.

scheme, or to a product that helps someone

Millennials have a different way of

acquire an asset.

thinking, even as far as insurance

“So, insurance has to be more relevant to

is concerned, so from an insur-

the lives of these people rather than waiting for

ance business perspective, the

the risk of death, or a company accident or

insurance space has to be ready,

whatever. I think that’s the direction our prod-

not to sell insurance necessarily,

ucts need to take going into the future.”

but to sell a product that’s relevant to a young person, while w w w. g i g a b i t m a g a z i n e . c o m

MTN SUDAN

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MTN SUDAN: PROVIDING LEADING MOBILE AND INTERNET SERVICES IN AFRICA MTN Sudan continues to enrich the lives of its customers through innovative service solutions WRITTEN BY

DALE BENTON

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PRODUCED BY

ARRON RAMPLING

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w w w. g i g a b i t m a g a z i n e . c o m

MTN SUDAN

250

art of the wider MTN Group, MTN

pany that sponsored the 2010

Sudan is the African arm of the lead-

FIFA World Cup in South Africa.

ing provider of communication

But what is it that separates

services, cellular network access and busi-

MTN Sudan from other providers

ness solutions. The company brings together

of communication services? A

more than 230 million subscribers across its

commitment to innovation and a

operators all around the world in Africa, Mid-

continuous drive to enrich the

dle East and Europe.

lives of its customers.

It is the MTN Sudan arm that has taken the

â&#x20AC;&#x153;We are determined to lead the

spotlight over recent years, becoming the first

delivery of a Brave New World in

African telecom company ranked amongst the

the daily mobile communication

top 100 global brands according to Millward-

usage of our customers by inno-

Brown Brandz in 2013. The company also can

vating our friendly used services

boast at being the one and only African com-

and through our consistent provi-

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developing innovative and attractive packages and services that create a far greater customer experience. In today’s world of social media, communications service providers have to be able to allow their customers to access the biggest communication tools in the world in Twitter and Facebook. To this end, MTN has a Facebook Zero initiative. This initiative sees MTN prepaid subscribers being given exclusive access to Facebook through their mobile phones. Better yet, it is entirely free of charge. sion to make MTN customers lives a whole lot

Facebook Zero is a “light-weight,

brighter,” the company promises in its strate-

text based” version of Facebook

gic vision.

Mobile. All customers have to do is

“Customers are at the heart of what we do,

send a message to a designated

we guarantee to deliver the change for good.”

number provided by MTN Sudan

The way in which MTN Sudan achieves this

and they will be granted access to

is key. The company has invested heavily in

the social media platform, enabling

expanding its MTN network to cover more

customers to connect with their

than 500 regions across Sudan and in doing

friends and families at the touch of

so, the responsibility to keep the customers at

a button and on the go.

the heart of the matter expands with it. MTN encourages loyalty and strives for cus-

It is but one example of how the company works extremely hard to

tomer retention through the provision of the

do more than provide a simple ser-

highest quality services and continuously

vice to customer. w w w. g i g a b i t m a g a z i n e . c o m

251

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Click here to watch one of our lastest videos ‘MTN 4G’

253

Another key trend emerging in the world of communications is the rollout of 4G and 5G. While the maturity of communications and technology in Africa highlights that it is not quite there with regards to 5G, there is one perk for customers of MTN Sudan seeking a 4G connection. In the state of Khartoum, MTN Sudan provides customers with the MTN Start 4G internet service. This enables a “wonderful internet” experience for customers using their existing contract/SIM card setup. Much like its Facebook Zero initiative, customers simply dial a number and are presented with a choice of many packages that range from 1GB of data right up to 100GB of 4G data. But as the company continuously states, its goal is to w w w. g i g a b i t m a g a z i n e . c o m

MTN SUDAN

lead the delivery of a bold new digital world to its customers and make their lives a whole lot brighter. One way in which it delivers on this, is through gifting. For a population of around 40 million people, MTN Sudan recognises that while most of its customer base continues to access its services it cannot forget about those that don’t. As a means of attracting more customers, and connecting them with the existing customer base, MTN Sudan has an incentivised offer of the MTN Freebie. Designed to “make someone’s day”, MTN Freebie allows prepaid customers the oppor254

tunity to invite their friends and family into the MTN Sudan family through gift internet bundles. But of course, the customer of MTN Sudan is not only the people in the street and in their homes. The company also offers communication and internet packages for business and enterprise customers. MTN Sudan provides a number of packages specifically tailored to business customers, whether they be small or medium enterprise, designed to maintain the effectiveness and efficiency of their work performance. As the market continues to grow and the telecommunications network becomes more stable and more mature, MTN Sudan is finely poised to lead the front on adopting and implementing technologies and solutions to J U LY 2 0 1 8

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2005 Year founded

Operating in 23 countries in Africa, Middle East and Europe

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MTN SUDAN

256

continue to provide the greatest level of

of companies in the region that collabo-

service it can to its customer base.

rated on this pilot scheme, including

This is exemplified by the launching of Mobile Cash a few years ago. Cashless

EBS and the Central Bank of Sudan. While cashless payments are but one

payments are huge across the Western

example of technology innovation that

markets, but in areas like North Africa,

MTN Sudan is investing in, the future will

there is still a lag with regards to adopt-

continue to be defined by this techno-

ing this technology solution.

logical growth.

MTN Sudan successfully piloted a

Speaking at the successful conclu-

Mobile Cash solution as a means of

sion of the pilot scheme,Â Mr. Malik

highlighting this innovative solution to

Melamo MD, MTN-Sudan noted that the

the citizens of Sudan. In Sub-Saharan

scheme represented everything the

MTN Sudan was part of a conglomerate

company stands for as well as opening

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257

the market’s eyes to the opportunity of Sudan’s market. “The chances for the success of this project in Sudan are very high for the availability of a strong infrastructure of communication, besides that, Sudan is a promising healthy market for such mega-project which represents the top-notch payment and financial transactions system across the globe,” “MTN-Sudan is striving to deliver the highest quality of services and best solutions to its customers based on its vision and core commitment to lead the delivery of a new bold digital world to make their lives a whole lot brighter.”

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SUN LIFE FINANCIAL

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Providing a friction experience through digitisation J U LY 2 0 1 8

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nless h w w w. g i g a b i t m a g a z i n e . c o m

SUN LIFE FINANCIAL

Sun Life has undergone a significant digital transformation to provide empowering, client-centric solutions to its customers. Chief Information Officer Ritesh Sarda tells us more sia has become a hotbed of innovation. Technology is continually promoting a new dynamic between companies and clients, and the insurance industry is no exception to this significant shift. New digital tools such as artificial intelligence, automation and IoT are disrupting outdated business models. The entrance of non-traditional players like Alibaba and Tencent are further amplifying competition. Providing an array of tailored life and health insurance products and services, Sun Life has grown exponentially across the US, Canada and Asia, expanding its reach in Hong Kong, Indonesia, Malaysia and the Philippines, as well as housing joint ventures in India and China. With two distinct lines, life and health, and wealth and pensions under its umbrella, Chief Information Officer Ritesh Sarda has been at the forefront of the company’s digital transformation and has streamlined the business’s dual programmes across Sun Life’s Hong Kong division. “We have a bimodal team, where one half of my team works for the transformation programmes in legacy and digital, and the other runs our daily product launches, IT operations, data centre, information

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261

security etc.,” he says. “I see the ‘C’ in CIO as a change agent. The ‘I’ stands for somebody who is bringing real technology innovation solutions to solve real business problems, and the ‘O’ is to enable and improve operational efficiency.” Distinctive client experience With this in mind, the company has looked to transform its operations from the view of its three key stakeholders: financial advisors, policyholders and its internal operations. The introduction of an iPad-

based point of sales system, for example, has sought to enable financial advisors to support clients across their entire sales journey. An app for financial advisors also allows them to view the portfolio of clients, and where they are at each stage of the application process. “This tool also enables financial advisors to track all their new business, commission, their sales target and so on,” adds Sarda. “For our second key stakeholder, the policyholder or client, we have launched our new mobile app. This has provided a simpler, more holistic view for clients and shows their overall portfolio with Sun Life, spanning their coverage and assets. It also gives clients a breakdown of what they have really bought w w w. g i g a b i t m a g a z i n e . c o m

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Empowering Customer with Thought Leadership insights

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for themselves, their beneficiaries etc. In coming times, They can also do a lot of selfservicing, such as funds switching and withdrawing funds, submitting e-claims,” he continues. Becoming fully committed to delivering a unique and distinctive client experience, Sun Life has also partnered with banks to provide faster payments and deliver a complete, frictionless experience.

Digital edge By placing significant investment in automating repetitive tasks, Sun Life has also sought to boost efficiencies across its operations. “All of these things are tied with our philosophy, which is essentially around ease of doing business with clients, proactive problem resolution and establishing proactive contacts with clients as well,” says Sarda. “We are ensuring that we capture interactions across all channels; from a client interacting with advisors, call centres and our mobile app to guarantee these functions are all in sync. “Data is therefore a glue which is bringing holistic synergies between all these digital assets and physical channels to make it a very streamlined experience, and filters into our overall data strategy,” he adds.

“ I see the ‘C’ in CIO as a change agent. The ‘I’ stands for somebody who is bringing real technology innovation solutions to solve real business problems, and the ‘O’ is to enable and improve operational efficiency”

—

Ritesh Sarda, Chief Information Officer 263

By ensuring that all decisions are based on authentic data, Sarda notes the importance of focusing on each source of data and, most importantly, to further understand the data. This has led the business to leverage the power of predictive analytics. “Data is the bond between digital assets and physical channels, and the other is purely datadriven decision making, getting insight and having the right level of analytics.”

w w w. g i g a b i t m a g a z i n e . c o m

SUN LIFE FINANCIAL

FACT

Sun Life has grown expanded its reach in Hong Kong, Indonesia, Malaysia and the Philippines, as well as housing joint ventures in India and China. Sun Life has transformed its operations from the view of its three key stakeholders: financial advisors, policyholders and its internal operations. 264

The introduction of an iPad-based point of sales system has sought to enable financial advisors to support clients across their entire sales journey. Sun Life has also partnered with banks to provide faster payments and deliver a complete, frictionless experience Sun Lifeâ&#x20AC;&#x2122;s accelerator programme has led the company to collaborate with startups across a number of digital divisions, ranging from artificial intelligence and blockchain, to insurtech and fintech

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Partner power Promoting innovation across its entire portfolio of services, Sun Life’s accelerator programme, has led the company to collaborate with new age startups across a number of digital divisions, ranging from artificial intelligence and blockchain, to insur-tech and fintech. Providing a real business problem to the selected startups, the company then tasks them with developing a solution. However, whilst the number of partnerships at Sun Life is growing, such relationships remain complex. “There are three levels of vendor partnership. The first is purely infrastructure demand. When it comes to running a rock solid stable infrastructure, we have a partnership with a tier one vendor who essentially manages our overall data centres and all the associated infrastructure,” explains Sarda. “The second is with multiple vendors, where we essentially use them for business platforms; whether it is wealth management systems, insurance administration, CRM systems or databases etc. “The third is around laudable innovative solutions around legacy, chatbots, artificial intelligence, point of sale and mobility. “There are very niche solution providers, w w w. g i g a b i t m a g a z i n e . c o m

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SUN LIFE FINANCIAL

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who have a very, very niche solution to solve a particular business problem and we partner with them to basically bring in both utilities in our ecosystem.” “It's about combining the right client experience with a frictionless business.,” adds Sarda. “It’s pulling that business growth in a non-linear manner, which means that our operating expenses don't necessarily grow in the same tandem as the growth content.” Such growth is, of course, in the face of growing competition. Whilst traditional businesses in banking and insurance previously held sway, preventing non-traditional players from entering this market, the walls are being broken down. Such shifts have led to the growth of digital banks and insurers which house an entirely alternate business model. “These startups don't have much legacy or baggage, so their ability to ramp up is pretty quick. Non-traditional players, such as Amazon and Alibaba have J U LY 2 0 1 8

“ Data is a glue which is bringing holistic synergies between all these digital assets and physical channels to make it a very streamlined experience, and filters into our overall data strategy” — Ritesh Sarda, Chief Information Officer

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shown immense interest in insurance through their recent partnerships,” he says. “With the amount of customer data they have, the agility they have and the digital platforms they have, clearly it's massive competition knocking at our doors to disrupt our own market. “Nonetheless, there is a lot of potential for growth and I think there are essentially three areas where I think we see the growth. Firstly, we still see a lot of growth in a high network business. Secondly, we see growth on the health insurance side, where governments have taken initiatives about enforcing mandatory health insurance. Thirdly, we see a lot of potential in digital insurance for simple products,” concludes Sarda. “At the same time, we continue to see that our existing channels of advisors will continue to exist in the ecosystem for us to be able to sell more complicated and more financially advanced products to their clients. Both will therefore coexist.”

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DIGITISING THE PATIENT EXPERIENCE

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With the main hospital accredited by Joint Commission International for its high-quality healthcare, Group Chief Information Officer, Brett Medel, discusses how digitisation will prepare TMC for the future WRITTEN BY

CATHERINE STURMAN PRODUCED BY

MIKE SADR

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w w w. g i g a b i t m a g a z i n e . c o m

ealthcare leader in the Philippines and the owner of the first private hospital in Guam, The Medical City (TMC) provides cutting-edge health services, housing centres of excellence in wellness and aesthetics, cardiovascular, cancer and regenerative medicine. The company has recently embarked on launching seven new institutes, which will cover a number of common health problems within the country. With one flagship healthcare complex in Manila, four provincial hospitals, 50 clinic sties in Metro Manila and in select provinces in the Philippines, a clinic in Dubai and a hospital in Guam with a total bed capacity of almost 2,000 beds, TMC has looked to fully digitise its operations to adhere to its philosophy – ‘Where patients are partners.’ With over 30 years expertise in the IT space, Group Chief Information Officer, Brett Medel is set to take the organisation to new heights. Through its digital transformation, Medel will establish best practices and ensure TMC retains its position as the healthcare provider of choice. “TMC has been serving the Filipino community for 50 years, and it is considered a legacy institution. However, it has been saddled with a traditional front and back office system. It needs to transform to cater to the needs of the

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The Medical City Critical Care experts Dr. Jose Emmanuel Palo and Dr. Jude Erric Cinco go over a patientâ&#x20AC;&#x2122;s X-ray while discussing his current condition.

w w w. g i g a b i t m a g a z i n e . c o m

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new generation so it has invested heavily across its digital journey to significantly improve the patient experience,” he says. “My charter is to make TMC closer to the Filipino community as much as possible; to positively impact the patient experience and improve on efficiency by building an intercon-

A TMC vascular technician and a consultant perform a Carotid Doppler test on a male patient. A Carotid Doppler test is a safe and painless procedure that uses sound waves to examine the blood flow through the carotid arteries.

nected ecosystem of stakeholders into a single platform.” GIVING PATIENTS CONTROL

Empowering individuals is something which TMC will strive to achieve through open communication and the use of new digital tools. “From finding out the treatment for a parw w w. g i g a b i t m a g a z i n e . c o m

ticular disease, setting an appointment with a

awareness to ultimately improv-

doctor of choice, to being informed of the

ing the health of every individual.”

choices available for the type of wellness required is aligned with our value proposition

DIGITAL ROADMAP

of ‘Patients as Partners,’” adds Medel.

Providing a digital roadmap, TMC

“We see every individual not as merely

will partner with like-minded

as a clinical patient, but a partner who

companies to drive essential

belongs to the ecosystem of wellness and

change across its operations.

health management.”

“I always tell my people and

“TMC looks after the welfare of every

my partners, ‘implementing a

individual even before they set foot in the hos-

system is not the end result,’”

pital or clinic, as we believe that

reflects Medel. “However, to me,

healthcare is all about providing premium

the criteria of success of any

quality of health; starting from prevention and

technology project is getting

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TECHNOLOGIES THAT WORK, SOLUTIONS THAT WIN! At Nexus, our commitment is to enable you to maximise your IT resources to your business advantage. www.nexustech.com.ph sales@nexustech.com.ph

ASIA

Laboratory technicians at The Medical City’s Regenerative Medicine Laboratory perform the engineering of cells and other biomaterials for the purpose of preserving, restoring, or enhancing organ function.

275

users to adopt the system.” With the aim to bring the entire the network of hospitals and clinics under one platform, TMC has implemented a robust cloud infrastructure that can not only cope with the demands of the business, but deliver resilience across its disaster recovery strategy. It will also work to ensure scalability. “By getting all areas interconnected, we can maximise synergies across the hospital network, without placing increased investment at each site,” says Medel. By appointing Orion Health Inc, TMC has

“ By getting all areas interconnected, we can maximise synergies across the hospital network, without placing increased investment at each site” — Brett Medel, Group Chief Information Officer

also invested in a world-class hospital information and consultation system, which will w w w. g i g a b i t m a g a z i n e . c o m

BIO

276

Brett Medel has been in the IT profession for the past 30 years where 17 years were spent as CIO of various companies in the private sector. Prior to joining The Medical City, Brett served as Group CIO of ePLDT. As Group CIO of ePLDT, he wore two hats “Internal facing” where he drives the digital transformation journey of the ePLDT, and “External facing” where he engages with the clients to help them in their strategic IT initiatives. He used

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to be the Chairman of the CIO Council of the MVP Group of companies with 30 CIO/ IT Heads of member companies worked with him to bring about synergy through various IT initiatives of the MVP Group. Prior to joining ePLDT his experience cuts across various industries like mining, manufacturing, government, retail, and insurance. He used to be the Vice President and Chief Information Officer of Philex Mining Corporation (a member of the MVP group of companies) since 2012. He spearheads major business transformation initiatives in Philex to improve opera-

ASIA

integrate with its other ancillary subsystems. Nonetheless, the organisation is facing a

tional efficiency. Prior to joining Philex, he was the VP and CIO of Prudential UK and PNB Life. His IT exposure started way back in 1987 where he joined Andersen Consulting (now Accenture) as a management consultant where he held projects here and abroad for both the financial and manufacturing industry. Brett holds a Bachelor of Science degree in Management Engineering (Honors Program), Ateneo de Manila University.

number of regional challenges. “We have server-based and networkbased applications, but capability is always complex,” comments Medel. “To bring all of this into the cloud is the start of our transformation. At the end of the day, it’s all about bringing different players into an interconnected ecosystem.” PROMOTING ACCESSIBILITY

With so many hospitals and clinics situated over a vast geography, connectivity will also present fresh challenges. Strengthening the wi-fi within its hospitals and clinics will become fundamental for TMC to capture data across a number of platforms, particularly mobile, in order to draw insights, trends, associations, sentiments, psychographics and more, in order to develop new programmes and services. “Our digital transformation is not just about automation, but a shift in mindset by introducing new business models to raise the bar of the customer experience. It is about strengthening the company’s value proposition to the next level,” adds Medel. With this in mind, TMC is undergoing a significant initiative to build on its strong digital marketing strategy to bring the brand into the w w w. g i g a b i t m a g a z i n e . c o m

277

digital space. This will not only boost the organisation’s foot traffic, but further its digital footprint across a number of touchpoints, such as Facebook, Twitter and Instagram. “We have shifted our marketing resources to put equal emphasis on digital marketing as to that of traditional marketing. This is a strategy that has never been before done in the entire history of TMC,” says Medel. “TMC aims to top the charts 278

on customer awareness across its products and services. We would also like to get the pulse of the digital community by conducting social listening and see how we are performing as a healthcare provider in the eyes of the digital community. “Social media and mobile apps are sources of information that we can immediately collate and process, where either immediate feedback is given or immediate action is taken. This way, customers feel that they are valued and their feedback is taken on board.” J U LY 2 0 1 8

“ We see every individual not as merely as a clinical patient, but a partner who belongs to the ecosystem of wellness and health management” — Brett Medel, Group Chief Information Officer

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A Wellness doctor checks on a patient inside an Executive Suite at the Wellness and Aesthetics Institute.

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ENGAGING ALL PARTIES

Moving forward, Medel remains

By deploying IT account managers across

keen to explore new avenues and

the organisation, TMC has built a culture of

unlock further potential which has

innovation among its employees and medical

yet to be explored.

staff, where it has gained a greater under-

“TMC will be on this digital

standing from various teams on what is

journey for the next couple of

required from a digital perspective to

years,” he concludes.

enhance the quality of patient care.

“We will be on top of AI, chatbots

“We need to make everyone aware of the

and of course, cloud. However, the

benefits and the value of digital, of being a part

most important aspect is having a

of the digital economy,” acknowledges Medel.

robust community drive. This will

“Not only medical staff or users, but also

remain the focal point for TMC.”

our stakeholders. Education is essential while we undertake our digital journey.” w w w. g i g a b i t m a g a z i n e . c o m

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Inside t room of M J U LY 2 0 1 8

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the financial engine

Mercedes-Benz Written by Laura Mullan Produced by Kristofer Palmer

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MERCEDES-BENZ GROUP SERVICES PHILLIPPINES INC

A progressive and dynamic work culture is key for corporate success, and it seems Mercedes-Benz Group Services Philippines understands that better than anyone

OASTING ITS ICONIC silverstarred emblem, the Mercedes-Benz Tower has become a landmark in the Philippines, supporting the brand’s position in the Asia-Pacific market. With offices in both Cebu and Clark, 282 Mercedes-Benz Group Services Philippines (MBGSP) provides finance and accounting services for the Daimler Group, one of the world’s most successful automotive companies. Supporting esteemed vehicle brands like Mercedes-Benz, Heiko Nitsche, President and CEO, says that the firm’s services are critical for the automotive giant’s success. “MBGSP is responsible for paying Daimler’s supplier, so we are ensuring that our factories across the world get the parts, materials and services they need. “MBGSP also supports many of the J2U8LY2 2 0 1J8u n e 2 0 1 8

Daimler Group subsidiary companies with the production of their financial statements,” he adds. “So even though we are just 500 of Daimler’s 289,000 employees worldwide, I think we play an important role.” Since its creation, MBGSP has steadily matured, surpassing its initial growth target. Serving at the helm of the company for almost seven years, Nitsche has helped to build the Daimler subsidiary from the ground up, working with peer groups and sector leaders to gain the latest industry knowhow. “It was really exciting to be the first person in the Philippines from the Daimler Group and to start something completely from scratch,” he notes. Building a company from its very foundations is a challenge for any executive. For Nitsche, perhaps the biggest priority was finding the right

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Cebu office

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MBGSP Clark Building Inauguration

285 team with the right skills and attitude for the job. “In the beginning, most of the time was focused on recruiting the right people, our pioneer team,” he explains. “It was of the greatest importance that we found the right team with the right skills but, even more importantly, that they had the right attitude and spirit. “I think we are unique because of our people and our corporate culture. At MBGSP we believe in the best of both worlds. This mean you can’t copy and paste the corporate culture of our parent company into any country.

“We merged the best elements of the German Daimler culture with the Filipino culture. In the Philippines, you have world class customer service, excellent English skills, and the people are very adaptive to new cultures. Now, we have a very young, dynamic and customer-service oriented organisation with lots of energy.” MBGSP has a millennial-centric environment and is committed to providing equal opportunities. Creating a progressive, open and welcoming work culture is something which Nitsche is clearly passionate w w w. g i g a b i t m a g a z i n e . c o m

MERCEDES-BENZ GROUP SERVICES PHILLIPPINES INC

Heiko Nitsche, Chief Executive Officer of Mercedes-Benz Group Services Philippines A keen eye for numbers, a quest for adventure and the world’s maker of the best automobiles brought Heiko Nitsche, Chief Executive Officer of Mercedes-Benz Group Services Philippines to Asia. Heiko who is originally from Stuttgart, Germany started his career with Ernst & Young AG as a young Executive in 1997. He joined Daimler AG as Manager for Corporate Controlling & Accounting in 2003, and as Chief Accounting Officer for Mitsubishi Fuso Truck & Bus Corporation, one of the subsidiaries of Daimler AG’s in Tokyo, Japan. He eventually established the Philippine office in 2011, after careful deliberation of this strategic location for the company. The Cebu office opened in December in 2011 with only three persons and last November 2017 MBGSP inaugurated its new office in Clark as the latest addition to the Daimler Group’s shared-service network. Currently, it has a team of 500 employees for both Cebu and Clark and is considered among the best in the field who provide finance and accounting services to subsidiaries of Daimler in Germany, the rest of Europe, Africa, Asia Pacific and the US.

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about, so much so he describes his team as “more like a family”. It’s an ethos which is well placed amidst the Philippines’ family-focused culture. “I would say what also makes the company unique is our working atmosphere and high retention rate. We have a low employee turnover, which is a critical success factor in this industry. Because of this, we have a higher performance and service quality because every time you lose an employee you have to find a new employee and retrain them to the same level of quality. “I’m very supportive of open communication and believe everybody should speak their mind. We speak to each other on a first-name basis and we break down the hierarchy walls. We treat everyone as equal without

tarnishing our roles and responsibilities and without sacrificing our respect for one another.” By tapping into the local language, embracing the Filipino culture, and creating meaningful relationships with his employees, Nitsche has strived to create a positive work environment. As such, he says that whilst other companies may list impressive values, they are taken to a new level at MBGSP. “Here at MBGSP we really embrace and live by our corporate values. Our values of passion, respect, integrity and discipline are a part of our DNA. 287 “In order to showcase this, we created an annual corporate value award system, whereby our employees can nominate someone to receive an award for really displaying these values on a dayto-day basis.”

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MERCEDES-BENZ GROUP SERVICES PHILLIPPINES INC

LENOVO

Lenovo is a $45 billion global Fortune 500companyandaleaderinproviding innovative consumer, commercial, and enterprise technology. Our portfolio of high-quality, secure products and services covers PCs (including the legendary Think and multimode YOGA brands), workstations, servers, storage, smart TVs and a family of mobile products likesmartphones(includingtheMoto brand), tablets and apps. Join us on LinkedIn, follow us on Facebook or Twitter (@LenovoPhils) or visit us at www.lenovo.com/lenovo/ph/en 288

As well as selecting the right team, location was a top priority for the company. Positioned in the fastemerging Asia-Pacific market, the Philippines may have been a unique choice of location however, Nitsche believes it has been an ideal choice and one which has given the company a competitive edge. Selecting a strategic site in Cebu, the MBGSP headquarters has become a distinctive landmark for the region. “We chose this location because it’s very important to have the right infrastructure, transportation, and facilities,” Nitsche says. “Today we now have a seven-tonne star on the rooftop. J U LY 2 0 1 8

It’s really a landmark in Cebu. Everybody in the city knows the building, which is good for us as it strengthens the company brand and also helps us recruit our best talent. “The key to our success has been how we attract and then retain the best

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©Lenovo 2018. All rights reserved. Ultrabook, Celeron, Celeron Inside, Core Inside, Intel, Intel Logo, Intel Atom, Intel Atom Inside, Intel Core, Intel Inside, Intel Inside Logo, Intel vPro, Itanium, Itanium Inside, Pentium, Pentium Inside, vPro Inside, Xeon, Xeon Phi, Xeon Inside, and tIntel Optane are trademarks of Intel Corporation or its subsidiaries in the U.S. and/or other countries. Lenovo reserves the right to alter product offerings and specifications at any time, without notice. Every effort has been made to check for accuracy. Lenovo will not be liable for any inadvertent error which may occur in editorial or typography in this catalogue. All images are for illustrative purpose only.

CREATIVO PROPERTY DEVELOPMENT CORPORATION Admin/Accounting Tel: 032-512-6861 Mobile: +639255015223 (Sun) Mobile: +639177724010 (Globe) 4/F, Mercedes-Benz Tower, Mindanao Avenue, Barrio Luz, Cebu Business Park, Cebu City, Cebu 6000

“ It was of the greatest importance that we found the right team with the right skills but, even more importantly, that they had the right attitude and spirit” Heiko Nitsche, President and CEO

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talent,” he adds. “With our company culture and brand, which is symbolised by that star, we really can attract the best talent in Cebu. I think the proof that we are an employer of choice is the fact that the vast majority of our employees are recruited by through an employee referral programme. It shows people actually enjoy working here, and they encourage their friends to join also.” Keen to keep up momentum, the Daimler subsidiary has also opened a second state-of-the-art Philippines office, in Clark. This not only ensures

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The Mercedes-Benz Future Truck 2025 provides a glimpse of driverless trucks

291 there’s capacity for growth, it also means MBGSP’s services are not disrupted and always available. “If something were to happen to our operations like a natural disaster, for instance, that could be a significant issue for us,” Nitsche explains, “therefore, we have developed a very sophisticated business continuity management programme. As part of this, we created our second office in Clark which gives us additional operational stability, security, and a world-class business solution for our global customers.”

Keen to ramp up its operations further, MBGSP has focused its investments on two pivotal areas: the upskilling of its staff and digitalisation. As part of this, the whole Daimler Shared Service network is investing in robotics, automation and artificial intelligence, for example, to improve its productivity and efficiency. “For our business, technology is very important. It’s crucial for the finance and accounting function, but it’s also vital across all of Daimler’s subsidiaries,” Nitsche says. “With technology comes the w w w. g i g a b i t m a g a z i n e . c o m

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opportunity to automate certain activities to free up your team. This means they can do fewer manual tasks and focus on the more interesting, valueadding jobs. “On the infrastructure side, when we established our second site in Clark, it became a hub site for IT,” he continues. “For example, in this site, we installed a state-of-the-art server room, which houses Smart Row cabinet. “Our Cebu and Clark site are fully integrated and capable of absorbing the load of each other in case one site fails to perform,” he adds. On the other hand, whilst technology has been a core focus, MBGSP hasn’t forgotten its most important asset: its people. As a result, the Philippines firm is investing heavily in development and training programmes to help attract and retain the best talent in the region. “We have soft-skills programmes from communication to change management and stress management to leadership, which are all equally important,” explains Nitsche. “These programmes are not given arbitrarily; each employee’s career plan is carefully

designed by their respective managers together with HR.” It’s been seven years since MBGSP was first founded. Years before, Daimler has already started its Shared Service journey with Daimler Group Services Madrid (DGSM) and Daimler Group Services Berlin (DGSB). Since then, the Daimler subsidiary has gone from

“ In 2011, we started with just three employees in total. Now, we have almost 500 in both Cebu and Clark. I’m very excited for the further growth of that family” Heiko Nitsche, President and CEO strength to strength, offering state-ofthe-art finance and accounting services and more. In doing so, MBGSP has bolstered Daimler’s position in Asia-Pacific but, not one to rest on its laurels, Nitsche believes it’s only the beginning for the firm. “In 2011, we started with three w w w. g i g a b i t m a g a z i n e . c o m

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Vision Mercedes-Maybach 6 Cabriolet ALL PHOTOS COPYRIGHT BY DAIMLER AG

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employees in total. Now, we have almost 500 in both Cebu and Clark. I’m very excited for the further growth of that family. The company still has the potential to grow, whether that’s in terms of headcount, processes, or value-added services. “Our most important target is to have a very good relationship with our global business partners, our customers so that they earn the trust and the confidence in us,” he continues. “For our employees, we want to ensure that there is always an opportunity for successful career growth. We also want to have mature and standardised processes. We want to integrate robotics and automation into our 295 processes. It’s a journey which we’re currently on but it won’t happen overnight. “As a responsible employer we create job opportunities within MBGSP and beyond in our supplier network to encourage business growth in the region.”

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Written by John Oâ&#x20AC;&#x2122;Hanlon | Produced by Glen White

How Sydney Motorway Corporation is leveraging AI, analytics and the cloud to deliver vital infrastructure projects

S Y D N E Y M O T O R W AY C O R P O R AT I O N

Most companies are moving their IT to the cloud, but very few completely depart from on-premise systems. That’s why Sydney Motorway Corporation is different, agile and demonstrating the workforce of the future as well as tomorrow’s infrastructure model

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ike most large and growing cities, Sydney faces problems of congestion, but it seems that for a variety of reasons it is worse off than similar-sized cities globally. A report just out from the Property Council of Australia says Sydney’s brand is “better than the product”, a major reason being that it has worse congestion than San Francisco, Montreal, and Phoenix, for example. However, Sydney is also leading the field when it comes to devising ways of keeping the city moving. In August 2014 the New South Wales government created the Sydney Motorway Corporation (SMC), a private company with the J U LY 2 0 1 8

Shaune Rosser CIO Shaune Rosser is an information technology professional with more than 20 years’ experience in strategy development, planning and delivery of large-scale business and technology transformation initiatives. He has a strong track record of delivering results and driving efficiencies to optimise business processes and systems. Rosser has worked across the public and private sectors in Australia and internationally, successfully leading IT mergers for government agencies, shared IT services for large government clusters and the implementation of market leading IT as-a-Service operating models. His experience in working across diverse and complex environments includes key transformation roles with NSW Health and the Commonwealth Bank of Australia, as well as consulting roles in the finance, government, university and clinical innovation sectors.

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“Our first goal was to create a commercial construct built on business outcomes as opposed to the traditional SLA model” — Shaune Rosser, CIO 299

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SYDNEY MOTORWAY CORPORATION PARTNERS WITH TECHNOLOGYONE TO DRIVE DIGITAL TRANSFORMATION FOR $16B INFRASTRUCTURE PROJECT Sydney Motorway Corporation (SMC) has been tasked with building and financing Australia’s largest transport infrastructure project, WestConnex, involving the widening and extending of the new M4, duplicating the new M5 and connecting the two motorways to provide a underground link that will create a free-flowing western bypass of Sydney’s CBD. Setting up a new business to manage this multi-billion-dollar project in a short timeframe meant SMC had little resources to spare on implementing the supporting business systems. It didn’t want to own or maintain the IT infrastructure required to run its business, instead opting for a zero IT footprint in-house to deliver flexibility, cost competitiveness and scalability. Where some would see insurmountable restrictions, the team saw an opportunity to do more with less and proceeded to lay the foundation for a smarter future, opting for a Software as a Service (SaaS) solution with Australia’s largest enterprise SaaS provider, TechnologyOne. SMC’s Chief Information Officer, Shaune Rosser, said the partnership with TechnologyOne has enabled it to focus on its core business, not IT. “We didn’t want to own or maintain the software, we just wanted to be able to consume the services. We wanted to have evergreen technology, with the upgrades managed and supplied, so it’s always current,” Rosser said.

TECHNOLOGYONECORP.COM/TRANSFORM

“Our people can access the TechnologyOne software from a URL, from any location knowing that with multi-factor authentication it’s safe, secure and reliable to do so. Our people can get the information they need, where and when they need it.” Mr Rosser said SMC went to market looking for a solution that would not only meet its IT requirements, but also its complex financial management and reporting needs. SMC now uses TechnologyOne’s enterprise SaaS solution to deliver efficient and effective operations, covering financial management, project accounting, reporting and analysis, and contractor management. “Since going live with TechnologyOne we’ve been able to reengineer business processes to align with best practice and operate as efficiently as possible. We’ve been able to reduce and simplify workflows, and have moved away from traditional paper-based processes to completely electronic,” Rosser said. SMC’s Deputy CFO, Bill Hartnell, added that the business has better integrated project and financial accounting, streamlined reporting and strengthened budgeting – all essential in effectively managing the $16 billion WestConnex project. TechnologyOne is Australia’s largest enterprise SaaS provider. Powering many of Australia’s largest infrastructure projects, the enterprise SaaS solution is available on any device, anywhere, at any time.

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brief of investing and financing major road projects – in particular the new company was commissioned by the NSW Roads and Maritime Services to deliver and finance WestConnex. As Australia’s largest transport infrastructure project, the A$16.8bn WestConnex project will play a crucial role in supporting the city’s expected population growth and will get Sydney moving again. WestConnex will be the central spine of Sydney’s motorway network, providing a long overdue underground link between the M4 and M5, creating a seamless motorway without traffic lights.

New M4 tunnelling

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At around 30km in length, WestConnex comprises six projects: the M4 Widening (completed 2017); the M4 East (opening 2019); the upgrade of the King Georges Road Interchange (opened December 2017); the New M5 (open to traffic in early 2020) and the M4-M5 Link which will be delivered in two stages, the mainline tunnels and the Rozelle Interchange and Iron Cove Link, with the entire scheme completed in 2023. WestConnex is a critical part of Sydney’s integrated transport solutions to tackle congestion

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and increase productivity and will go a long way to catch the Sydney product up with the brand. ASSET LIGHT, DELIVERY STRONG

So, SMC has been, and is, one very busy company. Spinning it out as a separate entity signalled a desire to deliver these projects in a different, non-traditional, agile way. Clearly the key to this would be how ready it was to use the best available IT systems, and adopt them as and when they were developed. To deliver this vision SMC recruited a suitably young and enthusiastic CIO. Shaune Rosser has more than 20 years of achievement

behind him but this was his first CIO appointment, so it says much that he was named in the 2017 CIO50 Awards as one of Australia’s top 50 technology and digital chiefs who are influencing rapid technologydriven change and innovation across their organisations. Unencumbered by the usual burden of legacy systems, he was not about to acquire any. SMC has no IT assets of its own, and has invested zero dollars making it, which Rosser thinks, is unique globally. It was a green field (how many CIOs must envy him) and he

‘The Workforce of the Future’ Sydney Motorway Corporation - Shaune Rosser CIO

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was able to establish a 100% as-aservice model for the company. “That gives us the flexibility to ramp up and ramp down as the business demands, and that is the beauty of system where we simply consume all of our services, bar none.” The model means that the business is flexible both in systems and in people. He doesn’t need a big team to manage the projects, but can bring creative specialists and highly skilled data analysts as they are required. “It’s the workforce of the future; a contingent workforce. We have embedded skilled people in the functional teams too.” This results in a collaborative relationship between IT and business units like finance, operations and HR: it also fits more easily than might be expected with a business whose core skills are engineering, planning and construction. In this business they’re well used to being part of a ‘contingent workforce’, Rosser says. They like people to come in, get their feet on the ground quickly, deliver the goods. It’s also easier for the people in SMC and its contractors to access

“ It’s the workforce of the future; a contingent workforce” — Shaune Rosser, CIO

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data and documents in a cloud or ‘Technology One’ environment. Microsoft tools play a big part in delivering this through Enterprise Mobility Security and Office 365 in a solution developed in partnership with local IT systems experts. This, along with other tools from the Azure suite and SharePoint, manages mobile apps and devices while safeguarding corporate data, allowing secure collaboration. It also enables virtualisation programs. Centrally managing access and security has also ensured the w w w. g i g a b i t m a g a z i n e . c o m

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IT department is freed from tackling end user device issues. Through the as-a-service model, Rosser has achieved spectacular optimisation of the IT service desk, responding to and resolving 100% of requests within the stringent parameters set down in the agreed service level agreements (SLAs). “This was our first goal – to create a commercial construct built on business outcomes as opposed to the traditional SLA model. If I have an outage at 3.00am on a Sunday there’s probably time to resolve it but at 9.00 on a Monday it’s a different matter. J U LY 2 0 1 8

We may have sound contracts but if everybody is not collaborating we have real problems. It’s this commercial construct that allows all our partners to work very well together and it has maintained that operational excellence. We have made great strides in cost effectiveness but it’s also about mobilising the business and making sure it’s always available.” However, before the basic architecture could be constructed, business critical data and records had to be captured. When SMC

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was set up, all the data it was going to need, the financial information and the HR records were embedded within the SAP environment used by government departments. “We had to transfer those data assets and migrate our email systems in a very short space of time,” he explains. “Initially we had to separate our data and information within the existing government departments, then extract them and move them to the new business.” The as-a-service system has enabled SMC to create an evergreen environment in which all of its services

are constantly updated and patched (Rosser offers the analogy of one’s smartphone) to make sure the business is always using the latest and greatest and most mature version of the software. WELCOME TO THE SMART NEW WORLD

A recent independent assessment confirmed that SMC’s operating model gives the optimum balance between cost control and efficiency. “One advantage is that we can quickly shrink our head w w w. g i g a b i t m a g a z i n e . c o m

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count and with it our costs,” Rosser says. “Again, if we want to implement new capabilities we are quickly able to deploy them. And we can be strategically focused rather than operationally. That is where we start talking about AI and machine learning and predictive analytics and building a digital engineering capability.” The standard methodology for making a business case by PowerPoint is giving way to AI and predictive analytics, and Rosser wants SMC to be the leader in technology and innovation to create new opportunities and business optimisation. He understands that people can be wary of adopting new methods, but finds that once the value of those outcomes is explained, and how they enable a knowledge-based workforce to focus on the tasks that they need to be doing, they soon become as enthusiastic as he is. Building the world’s longest fourlane tunnel for the New M5 provides

a good illustration. It’s unusual in tunnelling but developing an intelligent 3D model in this case will lead to more efficient planning, design and construction. “It shows how it will look and how it will perform,” Rosser adds. “It gives a foundation for our future capabilities too, and things like design reviews, safety training; and also provision for training to ensure emergency readiness. With this 3D model people can start preparing, visualising and understanding the asset from an operational perspective. Then there’s maintenance training and planning so when they come to do it for real a lot of time will be saved.” A ‘digital twin’ of the motorway can encompass trillions of potential scenarios. SMC is creating a 3D replica model of the entire asset that will be invaluable for managing the motorway and predicting how it will perform in

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any permutation of situations. Apart from its obvious asset management advantage, its very existence attracts the workforce of the future, the best young talent who would love to work in this digital environment. THE NEW GENERATION

At this point Rosser introduces J U LY 2 0 1 8

another passion of his â&#x20AC;&#x201C; leveraging the power of technology entrepreneurs. â&#x20AC;&#x153;I think we need to look outside the organisation and complement our classical partners by teaming with high calibre startups that are leading technology innovation. In my experience the key to success

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“We can quickly shrink our head count and with it our costs” — Shaune Rosser, CIO

is to step back and let them do what they are really good at. They are hungry, ambitious and bring a contagious sense of energy and excitement to the business.” This is one reason he is keen to partner, at the earliest opportunity, with technology startups. One example is Sydney-based AI specialist Elula,

which was chosen to scope and develop a number of AI concepts, a business made up of some very bright people. “Startups like Elula are nimble, they can meet our business needs and they are very different from our traditional partners. We get these people in because they think w w w. g i g a b i t m a g a z i n e . c o m

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There are currently 20 roadheaders digging the New M5 tunnels

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very differently and bring a real sense of excitement into the business as a whole. They spot opportunities and possibilities but, more importantly, are quickly able to prototype these faster than you could normally expect to create a business case.â&#x20AC;? It is significant that Rosser has no wish to hold all the reins himself but would rather share control with specialists, whether in engineering, or finance, or indeed any aspect of IT. One of the most valued compliments he has been paid was from a colleague who told him how much his approach was appreciated in the business: a less prescriptive approach where people are trusted and empowered through the change process and colleagues are encouraged to do what they do best. SMC is going to change â&#x20AC;&#x201C; a controlling interest will soon be sold by its government owners to investors. After one of the biggest global infrastructure acquisitions, the new owners will have the right to own and operate the motorway and then perhaps position it to take on further projects. Whatever happens after 2023 when WestConnex is a reality, the capabilities of this uniquely capable organisation will surely attract the attention of infrastructure developers around the world.

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CHAMPIONING SMART TECHNOLOGY

in the ENERGY SECTOR

Hugo Bailón, IT Manager at Orazul Energy, explains the goals and key points of the digital transformation that is changing the future of the company Written by María Cobano-Conde Produced by Ana Macfarland

ORAZUL ENERGY

atin America is one of the global regions with highest energy production growth, where the industry is solid and has an important development horizon. Orazul Energy is a leading company in the generation of electricity, which 316 in Peru carries out its activities through its two hydroelectric plants and a thermal power plant, taking care of the environment and the communities where it operates. Business Chief had the pleasure of speaking with Hugo Bailón, IT regional leader in all countries where Orazul Energy operates, on how technology is improving the company’s operations and the strategies that are being carried out for the digital transformation of the company.

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The energy industry – a dynamic sector tBailón has developed his extensive professional career in the oil and energy sectors, attracted by the dynamism and the combination of operations in the field with activities regarding the natural resources offered by the industry. He started working for Orazul Energy 14 years ago, a time in which he has developed a successful career path as IT Manager and regional leader. He has contributed with his experience and expertise in the application of technology to the management of administrative and operational processes of the company in the region. Orazul Energy is a company by

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“SOMETIMES YOU HAVE TO QUESTION IF STRATEGY IS CORRECT” – Hugo Bailón, CIO from Orazul Energy

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and for Latin America, as BailĂłn explains: â&#x20AC;&#x153;The challenge in IT is to adapt to a corporate strategic framework, but at the same time to tune in with the local reality of each country. Operating as a region helps us to efficiently take advantage of synergies and, for example, to have access to solutions that a country alone cannot independently afford. Likewise, standardising technologies in a regional manner allows us to negotiate with suppliers from a more solid and attractive positionâ&#x20AC;?. To carry out this regional strategy, technology is fundamental when it comes to execution to be more innovative, efficient and intelligent. Orazul is mainly a generator of electricity, although it also participates in the transport of gas through pipelines. Particularly in the case of Peru, it has hydrocarbon operations through the exploitation of a natural gas field and the transportation of that gas, together with its processing in a fractionation plant that produces natural gasoline and domestic gas for the end user. The energy sector is very dynamic

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Presa Cirato - C.H. Carhuaquero

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by nature, since energy is produced and consumed in real time. Orazul produces hydroelectric power in two hydroelectric plants, as well as thermoelectric energy generated in a thermal power plant which consumes its 52.5 MMcfd of natural gas. More than 600km of transmission lines and 200km of gas pipelines complement these operations. To handle this great complexity and extension of operations, technology is fundamental to make all the components and variables of the process work in the most synchronised and efficient way possible. BailĂłn explains that, in the energy industry, concepts such as the internet of things and real-time control systems have been used for many years, but it is recently that this technology is being taken to the business network. The practicality, availability and cost reduction are making technology increasingly integrated into Orazulâ&#x20AC;&#x2122;s operations and streamlining processes that were previously difficult and expensive: â&#x20AC;&#x153;As an example, before it was difficult to set up a lubrication plant, a hydropower

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ORAZUL ENERGY HAS PRESENCE IN SIX COUNTRIES IN LATIN AMERICA:

Argentina

Chile

Ecuador

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plant or auxiliary services because of the high cost. Today, with the enormous supply and low prices of the internet of things, you can do that. Integrating this information with the information of the main process, it is possible to digitalise the entire environment where the productive process is developed, which allows us to make better decisions in a faster time”, illustrates Bailón.

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The journey towards digital transformation Focusing on the digital transformation that Orazul has been experiencing for a few years, the company bases it on three fundamental aspects: human capital, technology and processes. Orazul sees its employees as the best tool to carry out this transformation successfully, and in this way, it is committed to training

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ORAZUL ENERGY

Executive Flat — Orazul Energy Perú S.A.

“THE CHALLENGE IN IT IS TO ADAPT TO A CORPORATE STRATEGIC FRAMEWORK, BUT AT THE SAME TIME TO TUNE IN WITH THE LOCAL REALITY OF EACH COUNTRY” 322

– Hugo Bailón, CIO from Orazul Energy and empowering its employees so that they evolve from performing operational tasks to more analytical ones in the processes they control. Bailón illustrates this concept with the example of Orazul’s electricity generating plants and the role of the operators in them: “We must transform the process and also evaluate the capabilities of people. Many of the operational tasks can be done automatically now. If you give information that is

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easier to digest, the operators can spend more time analysing how to make their work more efficient and profitable at that moment”. Both health and safety and sustainability strategies are aspects that are being benefited in terms of asset management and maintenance processes in the company’s digitalisation. At Orazul, risk assessment, the environment and compliance with and adherence to laws and regulations is of the

Gas plant facility

highest priority since culturally at Orazul, these issues are not sacrificed in pursuit of profitability. More specifically, Bailรณn points to smart grids, self-generation, the increasing capacity of selfmanagement of users and the integration of these factors into the system as agents that will radically change the market. In the same way, he considers the interaction of companies with research and innovation centres as well as with start-up projects as an important part of the digitalisation and innovation process. Latin America currently presents a very attractive environment for investments in the energy sector. Orazul in the future Within a period of five years, Bailรณn sees the company fully integrated into digitalisation with solutions that integrate and automate the entire process, from production to online decision making as well as having all the plants operating via remote control. He points out the management of all information and data received from

IN PERU, ORAZUL ENERGY PRODUCES ELECTRICITY AT TWO HYDROELECTRIC PLANTS AND AT THERMAL POWER STATION Aguaytia Thermal Power Plant

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“WE MUST TRANSFORM THE PROCESS AND ALSO ASSESS THE CAPABILITIES OF PEOPLE” – Hugo Bailón, CIO from Orazul Energy

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automated processes as the next challenge to achieve, and to big data, analytics and artificial intelligence as key tools to explore all this information. Orazul is currently evaluating pilot programmes to learn and find the right way to implement these solutions. Digitisation has always been on the horizon for the energy industry and, more specifically in Peru, Bailón encourages companies to adopt this change as something positive that can boost and incredibly encourage the development of the sector at better costs and with a greater delivery of value. He sees digital transformation as an integrated fact in daily life, which we are all already living though – therefore, it is a trend that

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companies have to consciously accept and take advantage of in order to improve their experience of their customers and improve the productivity of their employees. “Sometimes you have to question if the business strategy is correct. What is happening is that with the access to these technologies the processes are transformed and suddenly other processes appear that did not exist before. Then the strategy must change. That is where those opportunities arise to transform businesses and find space to add more value or transform the business model. This creation of value should benefit not only the company, but also society in general”, Bailón concludes.

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