Digital DNA for Augmented Organizations

SPECIAL EDITION MAY 2019

Digital DNA for Augmented Organizations BRIDGING THE GAP BETWEEN BUSINESS AND TECHNOLOGY

Henrik von Scheel The fusion of the di­gital, the physical and the virtual world www.digitalbizmagazine.com/DES2019

Maria Urquía, Telefónica The roadmap to face an orderly digitization

Grupo CMC IoT, identity management, security, analytics, big data...

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

#DES2019

The need for speed

Fernando Escudero

Welcome to DES2019!

Although Digital Transformation is a long-time project

someone else is going to put a better one out eventually.

for any company, there is one thing that matters more

The element that has changed, is the time-span in which

than the rest: the speed of this transformation. Once

all of this happens. Our value propositions simply (al-

customers have gotten used to the most comfortable

though there is nothing simple about it) must help to

way of doing things, like getting your products always

solve customer’s needs or problems. Therefore, we have

by tomorrow, ordering a car or your food with one click,

to implement mechanisms that allow us to find these

they are not going back to the “old ways”. Even if this

value propositions in time to do something meaningful

“old ways” are only three months back.

about it.

And this is something that puts companies under a lot of

I know it’s a tall order, but this years’ DES2019 will pro-

pressure, because they have to keep up with the speed

vide many of the answers CEOs, CTOs, CIOs and CMOs

things change. But in a way that will offer a long-time

are looking for, in order to make the next step in their

solution to today’s short-term requirement or problem.

Digital Transformation process a safe one, and in the

Decision time for companies is getting less and less. And

right direction.

with fast decisions, come bad decisions. Or, at least, in-

“

correct ones.

That is the main reason why companies have to change their ways completely, in order to adapt their processes to the shortened decision time, development time and implementation time. And what is more: the shorter lifespan of the product or service they will put on the market, because it is going to superseded, for sure, in no

Director

D I G I TA L B I Z MAGAZINE DES 2019

digitalbiz.es

Digital transformation is all about coordinated long-term planning and short-term delivery

time at all. The goal, in all of this, is to be the ones that put out the new product that substitutes the previous one.

Although this looks like kind of a dangerous race to an uncertain destination, it is no different from what has been happening on the markets over the past 100 years. Someone invents a new product and, invariably, KERUNET DIGITAL PUBLISHING is not responsible for the opinions of its collaborators or endorses them in any way: they are solely responsible for the content that appears with their signature.

Director FERNANDO ESCUDERO fernandoescudero@kerunet.com Publisher MARIANO FERRERA marianoferrera@kerunet.com

Publisher KERUNET RELATIONSHIP MANAGEMENT, S. L. C/ Humanes, 27 – 28944 Fuenlabrada – Madrid Tel. 91 112 46 97 | info@kerunet.com All rights reserved. Under the provisions of the Articles 8 and 32.1, paragraph 2, of the Intellectual Property Law, reproduction, distribution and public communication are expressly prohibited, including making available all or any part of the contents of this publication, for commercial purposes, in any medium and by any technical means, without written authorization from Kerunet.

Art Direction XANA MORALES xanamorales@kerunet.com Digital & Online Marketing SERGIO SALAZAR sergiosalazar@kerunet.com

Contributors Marisa Urquía (Telefónica España) Jaime Hortelano (Grupo CMC) Lluís Altés (DES-Digital Enterprise Show) Henrik von Scheel Tomás Martínez Buero (AI-Network) David Green (Lynk & Co) Antonio Crespo (Quint) José Antonio Tejedor (Virtway Events Juan Francisco García (Grupo CMC) Óscar Pierre (Aggity) Ferran Serrano (T-Systems) Alejandro Barrera (Grupo CMC) Marina Specht (MRM//McCann Europe)

Photography Jonathan Alonso, The Nut, DES– Digital Enterprise Show, Telefónica Empresas, Grupo CMC, Virtway Events, Aggity, T-Systems, McCann Europe, iStockPhoto, Wikimedia Commons, Freepik, Smashicons.

Printing Nueva Imprenta Subscriptions suscripciones@kerunet.com Editorial Team redaccion@kerunet.com Advertising info@kerunet.com Depósito legal M-32718-2012 ISSN 2254-9269 Website www.digitalbizmagazine.com/DES2019

MAY 2019

// 01

#DES2019

01 04

SUMARIO

Editorial

The need for speed

#DES2019

Digital Enterprise Show 2019 The world’s leading event dedicated to Digital Transformation

08

Interview

Marisa Urquía, Director of B2B at Telefónica España

“ 14

We make available to companies what we have learned in our digital transformation

Jaime Hortelano,

President & CEO at Grupo CMC A deep knowledge of our clients’ business, allows us to give an effective response to any arising challenges

18

We must speed up

22

Big changes and new ways of thinking

25

The right question to find the right answer

02 //

Self-driving cars and Machine Learning

30

Technology at the Boardroom

32

Leading the rise in Virtual 3D Interactive Events

David Green Lynk & Co

Antonio Crespo Quint

José Antonio Tejedor Virtway Events

A conversation with…

“

28

Lluís Altés

DES-Digital Enterprise Show 2019

Henrik von Scheel

Industry 4.0, strategy & competitiveness

Tomás Martínez Buero AI-Network

MAY 2019

36

Towards the data-driven company

40

Social Factory, the talking factory

42

Digitization for a better future

44

Identity management

46

The Marketing people are key

Juan Francisco García Grupo CMC

Óscar Pierre Aggity

Ferran Serrano T-Systems

Alejandro Barrera Grupo CMC

Marina Specht

MRM//McCann Europe

#DES2019

Digital Enterprise Show 2019 The world’s leading event dedicated to Digital Transformation

DES - Digital Enterprise Show is the leading event in Digital Transformation that offers CEOs, CIOs, CDOs, CMOs, political leaders and HR departments, together with cutting-edge technology companies, the most innovative products and solutions as well as the skills required to help European SMEs and large corporations join the digital transformation.

This includes technological solutions to improve the customer experience, operational processes and business models of all industries.

Digital Enterprise Show is the place where the synergy between knowledge and experience is achieved, where new ways of making business, of implementing new solutions and ideas arise. You are in the midst of an expo with over 300 world’s top tech companies, a congress with the 450 world’s best digital experts, and more than 23,000 visitors, who are discussing how Digital changes the business, and how to acquire the crucial knowledge, skills and solutions to shape their industries’ future. / M A K I N G D I G I TA L PA R T O F Y O U R D N A For the sake of your organization, it’s time to assume that digital transformation is bridging the gap between business and technology. A sense of urgency must help us to understand that if your organization wants to stand apart it is mandatory to make Digital part of your DNA. The potential for digital platforms to underpin and grow your business is unbounded. No more excuses, it doesn’t matter if you were born or re-born digital, your new mandate is to be the engine of growth. Consumers are taking the center stage and this generates an amazing opportunity for businesses, but also paramount challenges.

We are going to have to change our priorities to satisfy customers demands, to forge a new path to win by generating transient competitive advantages in front of your

04 //

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

#DES2019

traditional competitors and new entrants challenging

Transformation is up and running. Most organizations

your industry.

manage it haphazardly — when it should be a deliberate

Digital transformation is driven by a set of principles

and disciplined endeavour. Organization capabilities de-

and frameworks enabled by technology and connec-

veloped during the strategy definition process now need

tivity. Once these principles and frameworks are un-

to be coordinated together so enterprises can take advan-

derstood, they can be applied to any Business. Digital

tage of the augmented organization, where technology

transformation is a continuum and there are 5 key ele-

and capabilities are orchestrated in the most empower-

ments to this endless journey that will help all kinds of

ing way.

organizations to capture opportunities faster before the

*

competitors catch up and let them go before they are

/ CITIES & PUBLIC SECTOR FORUM

exhausted, so to not waste company resources.

The first important forum at DES2019 is on May 21st, dedicated to the Public Sector, where Cristian Citu, expert

Leading companies will address how AI has helped to optimize the experience of the digital patient

DES 2018

of the World Economic Forum, analyzes public/private collaboration. Other experts and leaders from the public and private sector will address the main challenges of cities 4.0, where regulatory changes and technologies are evolving the configuration of urban environments.

The acceleration in the urban and demographic development that the urban centers are experiencing, together with the growing concern to achieve a sustainable management of the available resources, are placing technology as a lever of change in the configuration of the cities to respond to these social needs. Therefore, Smart Cities

Last year, DES had 20,974 attendees from 51 countries, consolidating this

are gaining ever more relevance in this paradigm. The

event as one of the most important ones for Digital Economy. 68% of the

difficulty resides in establishing city models that are able

attendees were C-Level senior executives and members of boards of directors.

to be developed and everybody (public sector and citi-

Over 300 exhibiting companies, including Accenture, Deloitte Digital, IBM,

zens) is happy with. That is why the role of the citizen is

KPMG, Everis, UST-Global, Indra, SAP, Capgemini, Santander, Altran, Ferrovial,

gaining special relevance in this fourth edition of DES.

Seidor or T-Systems, showed their latest technological solutions over the three days the event lasted. The main topics of last year’s DES were Artificial

/ D I G I TA L H E A LT H F O R U M

Intelligence, Cybersecurity, the new GDPR and the debate of the Digital

Personalization, control, and safety are the main de-

Agenda by the political groups.

mands of patients in the health sector, according to IDC’s predictions. Health care, the doctor-patient relationship, and diagnostic procedures and treatments are experi-

MAY 2019

// 05

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

+10

6

7

89

+450

SCENARIOS

SUMMITS

TECH SERIES

SUCCESS STORIES

SPEAKERS

10

9

3

WORLD’S TOP INFLUENCERS

INDUSTRY FORUMS

SUPERSESSIONS

FIGURE 1 // DES2019 in numbers.

encing a revolution because of technologies such as Ar-

/ BANKING AND INSURANCE FORUM

tificial Intelligence, IoT and Big Data.

Santander, Telefónica, Deutsche Bank, Caixabank, Mas-

This is why during May 22nd DES2019 has organized

terCard, Evo Bank, AndBank, UiPath, Ovamba Solutions

the Digital HealthForum, where these new drivers are

and IDC experts are analyzing the challenges of the fi-

being analyzed, as well as how technologies are trans-

nancial sector at DES2019 on May 23rd. The new play-

forming the doctor-patient relationship and driving

ers, such as GAFA, and changes in regulation with the

new health care models in which data management is

entry into force of the PSD2 directive and the launch of

the protagonist. Leading companies in the sector such

the Spanish Sandbox for FinTech, will be discussed as

as Philips Health or Sanitas will address how artificial

well. This new European Directive will have a huge im-

intelligence has helped to optimize the experience of

pact throughout the EU. With this new regulation, open

the digital patient.

banking will be promoted, a new paradigm that can be

There is no doubt that the health sector needs to accel-

an opportunity for traditional entities, which will be

erate its digital transformation to take advantage of

able to provide financial services by developing Market-

technology and develop efficient and profitable models.

place-type platforms where they can integrate the Fin-

According to the latest data from IDC, the adoption of

Tech solutions.

Artificial Intelligence in the sector will have a direct im-

So the financial and insurance sector is seeing how the

pact on 25% of businesses related to the health sector in

business is transformed by leaps and bounds due to the

2020; and it is expected that by 2022, 50% of the clinical

impact of technology. That’s why DES provides this fo-

applications will include interfaces, based on voice rec-

rum, that will provide the keys to face the arrival of new

ognition and sensor implantation, for the treatment and

competitors in the sector and that will analyze the impact

collection of data.

of the enforcement of the European Directive PSD2, as well as the current trends on how the blockchain is being used.

/ I N N O VAT I O N H U B F O R U M Also on May 22nd, the fourth Innovation Hub is taking place at DES2019, where ideas and transforming projects from multiple verticals are shared through technology.

The objective of this forum is to connect entrepreneurs with potential investors, accelerators and large companies to establish business relationships for the future. For their part, large corporations find in Innovation Hub a space in which to access innovative and disruptive models and

*

The financial & insurance sector is being transformed by leaps and bounds due to the impact of technology

highly talented professionals who can help them in their digitization strategy. Approximately 30 participating startups from various sectors such as Industry 4.0, Urban Mobility, Energy Services, Cities and Public Sector, Banking and Insurance, Digital Health, TELCO, Media and Entertainment, Tourism and Retail, Electronic Commerce and Logistics are presenting their business proposals to inves-

Bridging the gap between Technology and Business

tors, large companies, accelerators and scale-ups.

Innovation and how it is conceived within the corpora-

DES is connecting the most innovating companies, providers of tech solutions

tion, is a fundamental ingredient to have in order to be

based in AI, IoT, Blockchain, Cloud, Cybersecurity, AR/VR, Big Data, Marketing

in the group of leading companies. The Innovation Hub

Automation, and products dedicated especially for Digital Marketing and

brings together all the benchmarks of the innovative

Industry 4.0, with C-Level Executives and purchase decision makers, who are

ecosystem and forms a large space to share and discover

attending DES aiming to find the best solutions from key industries.

new business models, new digital value chains and new digital economies.

06 //

MAY 2019

Also enjoy this issue in its digital version!

www.digitalbizmagazine.com/DES2019

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

We make available to companies what we have learned in our DT MARISA URQUÍA,

Director of B2B at Telefónica España

Companies need to accelerate their transformation and now it is the time to do it. That is why Telefónica Empresas was born. To respond to the needs of all types of companies, regardless of their size and sector, in order to help them during this process and provide them with complete solutions adapted to their specific needs. Marisa Urquía is looking after B2B unit of Telefónica España.

What is your vision of the current digital trans­

In recent times, this process of internal change

formation (DT) scenario?

has had a clear impact on various areas, incorpo-

The DT is not a trend, it is a reality, a necessi-

rating improvements in our own procedures and

ty and an opportunity that companies have to

activities. For example, simplifying and increasing

adapt to the new market, to new relationships

efficiency in our processes and services has sig-

with the consumer and to the new paths that

nificantly reduced our fixed costs. In addition, we

technology is opening up. It is a priority in order

have implemented new ways of working, which

to maintain competitiveness.

are more flexible and transversal, introducing the

The current business environment forces us to

concept of “smart work” and adopting the ‘Agile’

re-imagine the way we do business, and digitiza-

methodology in ever more areas and depart-

tion is a key tool to face our challenges success-

ments in Telefónica. And we now have a better

fully. That is how we understood it a couple years

digital relationship with the companies for which

ago and it has become a key part of our operation.

we work. The latter has allowed us to boost our

08 //

MAY 2019

#DES2019

MAY 2019

// 09

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

Cloud Garden

online channel (1 in 4 sales is online) and trans-

is more relevant, increasing their purchase time

form our physical stores: we have carried out the

while enjoying a different experience.

digital restyling of almost 700 Movistar stores in Launched recently alongside IBM, it

Spain, that is 65% of the total.

What is your vision regarding the cloud?

allows companies to offer the speed,

We have done this by leveraging the technological

The current trend in terms of cloud infrastructure

flexibility and decision-making

innovations within our reach, such as the Inter-

is that public and private ecosystems have to co-

capacity they need to modernize

net of Things, Big Data, Cloud or Blockchain. Of

exist. But is it possible to assign a customized in-

and rapidly launch innovative

course, we have done this always ensuring security

frastructure to each business process to get the

digital services to their customers.

and connectivity. This has allowed us to share with

most out of it? And, if so, would it have to deal

The foundation of this solution is

our clients all the lessons learned in our own DT.

with a multi-provider landscape and, therefore,

a managed container service, so

multi-interlocutor?

that companies have the necessary

Are we talking only about big corporations?

At Telefónica we have developed a MultiCloud

tools to be able to quickly execute

We talk about all kinds of companies, including

proposal in order to have a single interlocutor

applications that are already in

SMEs. DT provides tools similar to those of large

and make the management easier, building an

production, and to integrate them

companies, but adapted to their specific needs,

infrastructure in which each application has a

easily with other areas of the

which help them to compete in a digital environ-

customized platform to be hosted. In addition,

company. In addition, on top of this

ment.

it allows to combine different public and private

container service, we are creating a

From Telefónica, we are supporting SMEs in two

clouds, thus reducing complexity and centralizing

full range of services that are going

aspects: on one hand, helping them to understand

the management for all of them and therefore fa-

to facilitate the use of disruptive

the benefits of digitalization and the risks of not

cilitate the company’s relationship with its cloud.

technologies such as Blockchain or

adapting and, on the other, we are helping them

This MultiCloud proposal includes Private Cloud

artificial intelligence in a company’s

with the technology transfer and training their

services, a flexible infrastructure with Virtual

products and services, to increase

people in digital skills. All of this will impact their

Data Centers and a Public Cloud (Amazon Web

their process quality and agility.

productivity and sales at a controlled cost.

Service, Microsoft Azure and Google Cloud), all managed through a unique interface, the Cloud

Is the relationship with customers key?

Broker.

Of course. At Telefónica we reinvent and digitize the experience that brands offer users in their

Security is obviously important

physical spaces (stores, offices ...), opening up new

Yes. For example, we are helping businessmen

opportunities for communication, connection and

maintain high protection levels and threat mitiga-

relationship with their users. For this, we use dig-

tion when the main data and applications are pro-

ital multisensory marketing tools, such as digital

cessed in a Public Cloud, provided by a third par-

signboards, music and lighting, interactive panels...

ty. This way, we help them implement Security in

All of this is adapted in real time to different types

a context of transition towards cloud computing.

and goes through all the channels, from the digital

We have a team of more than 600 professionals

- like webs applications

specialized in Security for this, as well as a SOC

or search engine opti-

(Security Operations Center), that provides our

mization – to the phys-

main Managed Security Services: cybersecurity

ical ones.

equipment management, maintenance, incident

In addition, we re-

monitoring and analysis.

cently launched the

We also provide other services to protect against

smartretail Spotdyna

Denial of Service (DDoS) attacks from Telefóni-

platform, which en-

ca’s own network and against attacks directed at

compasses and allows a unified coordination of all

web applications (Web Application Firewall), in

the necessary tools to digitize spaces depending

order to ensure Clean Mail Traffic, and security

on the public and the specific moment.

for Internet surfing. We also have Electronic Sig-

At Telefónica we reinvent and digitize the experience that brands offer in their physical spaces

nature and Digital Identity services.

This has a clear application in the retail sector

The strategy we follow is to begin by protecting

Exactly. We have many references in the retail sec-

the basics (networks, cloud storage and equip-

tor because, thanks to the DT of the stores, a simple

ment), and from there we extend that protection

purchase becomes a new and different experience.

to other, more complex, assets.

In this area, technology helps merchants to bet-

10 //

ter understand consumer behavior in order to

IoT is another of the big bets

offer customized content. The visitors receive a

Connecting everyday things via the Internet is a

communication tailored to their interests, that

real breakthrough for organizations. IoT helps

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

#DES2019

We help maintain security, when data and core applications are processed in a public cloud simplify processes, increasing simplicity and agil-

networks will grow exponentially due to the ex-

ity, which in turn yields a better service to busi-

plosion of new technologies and services.

nesses and citizens. The application of this tech-

Therefore, we are leading the ne­twork transfor-

nology in companies and public administrations

mation in order to adapt it to the growing de-

has improved, for example, transport systems,

mands of our customers (fiber, 4G, and soon in

energy consumption - which affects the environ-

5G). The network is the foundation of the DT. We

ment - or city waste management.

have built a network focused on business and

It is not only about providing connectivity to

made a strong investment effort to get the best

‘things’ or devices, but about the possibility of

capabilities in order to respond to the challenges

controlling and keeping these assets connected in

presented by digitalization. We provide compa-

an integrated way through a single system.

nies with a flexi­ble and agile connectivity that

This is a type of service that companies have

adapts itself to the demands of their businesses.

welcomed with enthusiasm. The IoT Kite plat-

Another key element is the intelligent data

form has recently reached 10 million lines due to

processing. As José María Álvarez-Pallete,

growth in industrial areas (connecting and opti-

Telefónica´s Chairman and CEO, has stated on

mizing logistics and production processes), asset

more than one occasion, data is the oil of the

tracking (more efficient, safe, sustainable and

21st century. This represents a paradigm shift

profitable goods and people transport), energy

for the current businesses, that have to evolve

efficiency (energy consumption control, gener-

towards this model.

ating a positive impact on the environment and

Telefónica steps in the Big Data world in 2010 and

significant savings), or Smart Cities (safer, more

since then we are taking advantage of these capa-

sustainable, efficient, comfortable and interac-

bilities in all company areas, generating new val-

tive cities).

ue and making our business more efficient. Any process that either generates massive amounts

What other technologies are essential?

of data, evolves very quickly or has to take very

At Telefónica, we always highlight the role of

heterogeneous sources into account, should take

connectivity as a key pillar of the DT; Traffic on

advantage of this technology.

MAY 2019

// 11

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

tion to be successful. It is necessary to implement a cultural change getting nearer to the human resources. We must adopt a new way of doing things, new processes and organizational models, so that the employees commit themselves to face the digitalization challenges.

We must strive to explain to people what the reason for transformation is, and make them feel part of it, training them in the digital skills that are necessary.

Of course we have to put all technological tools that allow them to grow in this new environment at their disposal. The digital workplace must break the usual barriers faced by employees, such as geographical dispersion, the ability to reconcile work and personal life, and autonomous and collaborative work. In this context, Telefónica has designed a service to address this change, providing a new user experience that integrates the entire ecosystem of services and devices that the employee needs to work under the same management model. The company helps them communicate and collaborate, enhancing their mobility and flexibility and ensuring both end-to-end security and success in managing change to a more digital culture.

What advice would you give to a company to ac­ Regarding SMEs, they need to incorporate solu-

celerate their DT?

tions that allow them to compete in the digital

Companies and administrations know that they

environment with tools that are similar to those

need to be more digital. However, many do not

of large companies, but nevertheless adapted

know how to approach this process of change. In

to their specific needs. On top of that, we have

fact, according to a recent study by Fujitsu enti-

to help them manage

tled ‘The balance on the digital road’, 68% of com-

their

panies in Spain are looking for a strategic partner

We have built a network focused completely on business, with best-of-breed capabilities

infrastructure

more easily, at a cost

to help them in this process.

that is proportional to

At Telefónica, we believe it is essential to have a

their situation. From

roadmap to face an orderly digitization, whose

Telefónica we propose

objectives must be aligned with the company’s

doing this in two ways:

strategic plan. One of the mistakes usually made

on the one hand, help-

is addressing isolated digitization projects, with

ing them with the technology transfer and, on the

no relationship between them and without fol-

other, facilitating the training of digital skills.

lowing a common strategy.

Cybersecurity is also key. In our company we are

To take advantage of the full potential that DT can

applying it in its broadest sense: the one that re-

provide to a company, it is necessary to start from

fers to the concept of “management, detection

a holistic view that integrates all the pieces, so

and response” and that, in addition to the perime-

that each action that takes place, can have a mul-

ter protection, includes aspects such as threat in-

tiplying effect. It is also very important to meas-

telligence or attack anticipation; and other com-

ure what is done, to know exactly what impact the

mitment indicators and protocols for immediate

actions we carry out during the digitalization plan

response to security breaches.

have. To do this, we have to define performance indicators that show the progress and the digital

How is this DT impacting on employees?

The digitization process goes way beyond technology. The employee is key for the transforma-

12 //

MAY 2019

maturity, to measure ROI.

#DES2019

Jaime Hortelano President & CEO at Grupo CMC

What is Grupo CMC? What is your value proposition, and what are your differentiating features?

It is a very competitive market indeed, and one in which it is not easy to be different. We have always pursued differentiation in the market. Basically, our main strategy has to do, on one hand, with a deep knowledge of the business and the challenges of our customers. Through the understanding of these challenges and this in-depth knowledge, we propose a response to these challenges that is very effective, agile and efficient. In fact, it is almost like making tailored suits in response to these challenges, based on the knowledge we have of the customer.

Additionally, the search for the solution is always supported by the latest technology with a very important innovation component. And it is important to have the best professionals and being able to attract and retain the talent and work pace that our team has.

So, summarizing, first a deep knowledge of our clients’ business and its challenges, second, an effective response to those challenges, third, being supported by technology with a very strong innovation component and fourth, having the best professionals.

Tell us a little about your approach to the market.

How is your structure? What type of companies or sectors do you focus on? With what kind of technologies?

We are present in all the main sectors of the Spanish economy: banking, insurance, telecommunications, energy and utilities, infrastructure, tourism and health. In terms of percentages, approximately 33% is banking, 18% is tourism, about 15% is energy, another 15% is telco and then, the last 20% is shared between industry, infrastructure and health. Insurance is about an 8%.

With this positioning in several sectors we have a sufficiently diversified position and our approach in terms of deep knowledge of each of the businesses, and a very important knowledge of all the sectors which are important for the Spanish economy. It is also important to note that we have the most important customers in each sector.

Our approach to the market is with a specific approach for each of these important customers. In the end, about 50 clients represent about 80% of our business. And our approach is to identify the specific challenges of each cli-

14 //

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

In my professional career I’ve been with Coopers & Lybrand, which later merged with PwC, also with EY, I was Vice President at Capgemini, and then General Manager for Getronics. After this journey through the Big Five, with almost 20 years in senior management positions for English, American, French and Dutch companies, I decided to set up my own business project. During those 20 years in multinationals, I learned a lot and had a very interesting time that helped these past twelve years in this project with a great business connotation.

#DES2019

main blocks, and another one is everything that has to do with digital transformation technology.

The digital transformation technology block is subdivided into five or six individual segments. One of them has to do with the Internet of Things, another has to do with digital and electronic operations, another one is everything that has to do with Big Data and Analytics, another one with Artificial Intelligence and finally one that encompasses Security and Cybersecurity. These are the 5 most important subdivisions.

In each of these blocks we have focused very much on innovation and looking for solutions for the market. We do not sell “IoT” as a concept. What we sell are actual solutions for the businesses of our customers, based on IoT. Or else solutions for Big Data or artificial intelligence.

You get the picture.

And for each of these areas we use either technologies that already exist on the market, (which are standard), or we use technologies that we have developed ourselves.

The latter ones can be the result of an acquisition of a company, that we will immediately integrate in our innovation process.

I’ll give you some examples for each of them. For IoT we

“

ent so we can serve them better. We try to differentiate

are very focused on several things:

each of the clients and we do it with solutions based heav-

»»

ily on innovation that are specific for each customer.

of the leading companies for implementing solutions

Even if company A and company B are in the same sec-

for the management of photovoltaic plants. Actually,

tor, they probably won’t have the same challenges, the

everything that has to do with the management of power

same culture, or the same way of doing things. So we

generation in photovoltaic plants, for example based on

adapt to each of them and try to understand what the

SCADA technology, with mobile access.

challenge is for each moment, of each client. What he

»»

wants to do, what are his priorities. And we then re-

from a strategic point of view, thinking of the future man-

spond in a specific and differentiated way.

agement and allocation of water, as well as of its distribu-

We do this through solutions and, when I say “solu-

tion and its commercialization. This is a field where we

tions”, I am not talking only about technology. But we

have pioneering solutions.

try to generate solutions through technology.

»»

The world of energy generation, where we are one

The world of water is also a very interesting topic

The world of BMS (Building Management Systems),

this is actually the management of intelligent buildings

A deep knowledge of our clients’ business, allows us to give an effective response to any arising challenges

via IoT technology. The most important project we have done to date has been the intelligent management in the BBVA “sail” building where we manage more than 120,000 devices and we take care of the energy efficiency as well as the environmental management. »»

The world of Big Data, where we also have some inno-

vative solutions. For example one that is called DatKnoSys, which is dedicated to analyze provider risks, or risks in general (for banks, acquisition departments, etc.). The

How do you generate that innovation? How does it get

system even looks for information on Social Networks,

to Grupo CMC?

blogs, webpages, and so on to find information about the

For us, innovation is key within our strategic plans. Right

potential contractor, partner or provider.

from the beginning of this project we are innovating by

Lately we have also acquired a stake in an innovation

means of using the best technologies and proposing spe-

company, that produces intelligent mirrors. But in this

cific solutions for the market.

case, we’ve tried something new. Instead of doing all the

First of all, our offer does balance everything related

innovation ourselves or buying 100% of some company

with traditional information systems and using both

we are interested in, we have just taken a stake in their

custom-made and standard solutions. That is one of our

shares, that has allowed us to incorporate these compa-

MAY 2019

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DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

ny’s innovation in our core. This is a new approach for

The new digital banks, for example, are game-changers.

us. Anyway, what we try to do is combine both worlds:

And then there are the new competitors, like Amazon or

the traditional IT world, and the Digital Transformation

Google, which want a part of this market. And this is the

paradigm.

reason the financial sector has to changes its processes radically.

How has Grupo CMC been doing these past years and

And we are just there, helping them digitizing their pro-

what are your expectations for the future?

cesses. For example, our O2.Digital platform is the per-

Well, in 2007 we were a small company, with about 40

fect gateway to make digital clients. Among other things

employees, and today we are over 1,000, but we expect

because you can identify yourself without leaving your

to finish this year being over 1,200. Our growth rate,

home. Another challenge is credit risk assessment. To-

year over year, for the past 12, has been around 25%.

day, you can actually access all the information you want

But in the last 5 years, from 2014 onwards, we actually

(so to speak) about a certain customer, just by searching

have been growing at a pace of 28%. Half of that growth

on the web or on Social Networks.

is organic, and the rest comes from acquisitions. In our

“

sector we have been in the Top 5 for the past 3 years and, in 2018, our growth has actually been a 42%. Last year’s turnover was about 51,5 million Euros and for this year we expect to cross the 60 million mark. In fact, our goal for the next couple of years, is to surpass the 100 million Euros, and to get into the Top 20 of Spanish companies.

Everybody knows Digital Transformation is a must, but the speed at which you do it is the most important thing

The acquisition of startups by big companies is something usual. How has Grupo CMC done this? How have you integrated your acquisitions into the group?

In your experience, what is the degree of transforma-

Actually, as I already said, one of our strategic keys is in-

tion today? Is there still a long way to go?

novation. Which we have done, in part, acquiring other

I think everybody knows Digital Transformation is a

companies with interesting products or services. Some of

must. At least if you want to compete on a market that is

these companies where, obviously, start-ups. What we do

in constant evolution. But the most important thing is the

usually is that we integrate the new knowledge into our

speed with which you are trying to transform. Because

company, and then do a really big marketing and product

there are lots of very traditional companies, set in their

effort. Our O2.Digital platform, for example (see also the

ways, which have it quite difficult to adapt. Because tech-

article “Identity management. The next step forward for

nology, as such, is only a means to an end: a facilitator.

digital companies” in this same magazine) has its origin

Not the universal solution when you talk about Digital

in the acquisition of a start-up. As has our product Dat-

Transformation. You can’t transform a company only

KnoSys. So you can see that some of our most important

with technology. Therefore, the first step, especially in

solutions for the market, come originally from start-ups.

traditional companies, is changing the mindset and the

Our main goal, after the acquisition phase, is to convert

way they operate.

the knowledge they add to our innovation pool, into solutions we can offer to our customers, so they can solve the

You are focusing quite a lot on the tourism sector.

problems or necessities they have.

Why is this?

What we have seen is that the opportunity window for

Yes. Last year we acquired a company called Brújula,

new technologies in this digital era are getting shorter

which is a specialized IT company for the tourism sector.

all the time. So we think it is no longer possible for us

Anyway, I personally think that, since we are in Spain,

to finance all of our innovation initiatives completely

being in the tourism sector is a natural evolution. We ac-

in-house, because we need technology that is ready or

tually have all the technology ready to do, for example,

almost ready, to integrate and implement it in our prod-

the digital check-in. Even complying with all the legal

uct range. Therefore, we still work on two or three own

requirements of the government. And our digital Smart

projects, but the rest has to come from outside, because

Mirrors, could be used as digital butler right in the room,

the pace of change requires it.

or as assistant for trips, transport or information, in the Hotel lobby. On the other hand, we can apply all the IoT

The financial sector is one of the main drivers for

technology to the building, to control the electrical grid,

Grupo CMC. ¿What kind of innovative propositions

water supply, lights, heating and ventilation, etc. So, you

are you making to these companies?

see, our technology is ready to go, and this sector really

I think that the current challenge the financial sector has

can take advantage of it.

right now is the complexity the market has currently.

16 //

MAY 2019

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

Lluis Altés

Managing Director de DES-Digital Enterprise Show (2019)

He offers a fresh and provocative perspective on the opportunities and challenges that organizations face today, and he loves to combine the analysis of the impact of people in the digital age, with the study of the role of innovation and technology in the creation of new business models, products and services. Some people define him as a thought leader, but he is convinced that the best way to continue learning is to share knowledge. He is an entrepreneur with endless curiosity and a professional speaker in several languages on issues related to how digital transformation is bridging the gap between business and technology; and the crucial role of talent, people and innovation in the current revolution.

transformation with a holistic vision within the company.

The goal in 2016 was to make it clear to the attendees that it was necessary to establish a global strategy impacting all business areas, from IT infrastructure to business management and even company’s own culture.

A year later, DES2017 under the concept ‘Digital Maturity Journey’ elaborated a digital maturity map to ease doing a self-diagnostic to understand in which stage of the digital transformation the company was in and to define next steps for our attendees’ organizations. The objective was to provide solutions that allow companies to integrate their traditional business model into the new digital economy following a roadmap.

DES2018 edition under ‘Facing the Digital Avalanche’ claim, highlighted the awareness of the national and international business. We focused on the urgent need to undertake digital transformation and to change national economic and production models through technology. Finally, this year we decided to name our storytelling ‘Digital DNA for Augmented Organizations’.

We make a strong call to action to address the process of digital transformation now. There is no time for excuses, but to assume that digital transformation is a continuum and that we must be masters of its five key points to be future-proof.

Please explain this year’s main motto “Digital DNA for Augmented Organizations” During the fourth edition of DES-Digital Enterprise Show

“ 18 //

Please tell us the evolution of DES these past years,

we want to focus on the main challenge that compa­nies

to reach the point where it is now

immersed in a transformation process are facing: the

From the beginning, DES has counted with a lot of support

need to integrate new technologies into their DNA and

from leading companies. Initially, it was made of ICT

the cultural change this entails. Innovation, together

companies, but while gaining recognition on the market

with technology, will be the engines for development.

as the reference on DT, more and more organizations

Thus, it is fundamental to integrate the culture of

from all kind of industries are joining our impressive

innovation into a companies’ identity and business

Partners line up. The reason behind this is not only being

philosophy in order to continue growing.

the reference in Europe, but being the place to find the

Until now, many of them have started the digital

best partners to succeed in their transformation journey.

transformation in a hazardous way, without a clear roadmap that involves the whole organization. Now

DES 2019 is all about the need of companies to integrate Digital Transformation into their DNA

is the time for this process to have a comprehensive application that involves not only IT departments, but all the organization.

Transformation is a continuous process that must address the 5 key dimensions of the Digital Star Cycle: digital leadership, special attention to customer and employee experience, operations optimization, and

During the first edition, DES2016 focused on helping

added value through technology and innovation, when

visitors to be aware of the need to implement digital

defining a winning strategy that allows us to generate

MAY 2019

#DES2019

“

new revenue streams based on new business models,

academics or analysts. On the other hand, if we focus

new digital value chains and new digital economies.

on last year’s visitors, 82% of the visitors came from Europe, mainly from Portugal, the United Kingdom,

The biggest differences of the digital revolution over the previous ones, is the irruption of disruptive technologies and the speed of change

Germany and France, followed by America (11%), Asia (5%) and 2% from the rest of the world.

Which industries (if any) are most represented at DES? DES-Digital Enterprise Show is a holistic event where all industries are represented. Thus in the last edition our visitors and exhibitors where divided in the following industries: Telecom (12%); Retail (10%); Banking & Insurance and Consumer Goods (9%); Cities

What kind of person/profile usually attends DES?

& Public Sector and Pharma & Health (8%), Media &

The event is been designed to help all managers and

Entertainment and Consultancy (7%); Manufacturing

professionals who want to be up to date and know

(6%); Energy & Utilities (5%) and others (11%).

the most inspiring use cases and everything related

In addition, within the contents of our Digital Business

to the transformation of organizations. Therefore, our

World Congress, we also have a special focus on how

visitors are CEOs, CIOs, CDOs, CMOs, CFOs, and leaders

technology and innovation are driving industrial

of Human Resources departments. For each of these

transformation. We organize 9 industry forums focusing

profiles, we have developed specific content agendas

on analysing the challenges of digitization faced by

to show them key concepts to be leaders in the digital

companies from Banking, Energy and Health to Industry

age. Surviving is not enough any longer, it is only a

4.0, Retail or Tourism, and from Telecommunications,

way to postpone your company’s death.

Media and Entertainment to Smart Cities and Urban

71% of the attendees are C-Level decision-makers, 16%

Mobility. Each of them combines the knowledge of

are middle managers, 14% directors, 11% technicians,

international experts and success stories of companies

5% presidents of large companies and, finally, 2% are

that have stood out all over the world for implementing

MAY 2019

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#DES2019

“

an innovative business model, or for successfully

Our main objective is to ease the transformation

carrying out the digital transformation process.

of organizations and the identification of the best partners and talent to make it successfully. That is why

The use of Big Data, Blockchain, IoT, Virtual Reality or Cloud is already a reality in many companies

we also include experiences and spaces for networking within the event program.

How many people and companies do you expect this year?

Focusing on figures, we can stress that interest in business digital transformation has grown gradually since the first edition, in 2016. In these years we have gone from 18,000 attendees to expect to exceed 23,000

20 //

What kind of opportunities open to the people that

this year.

attend DES?

In this fourth edition we will have leading IT

DES2019 has become an international meeting point,

companies like IBM, Altran, Deloitte Digital, EY,

where attendees can find the latest news and the most

T-Systems, Globant, KPMG, Santander, TelefĂłnica,

innovative solutions from leading IT companies, as

Nutanix, Ferrovial, Seidor or Improove; which will be

well as enabling technologies to develop new business

presenting the latest and most innovative solutions

models, improve the experience of their customers

for visitors to find the way to digitalization, also

and employees or increase operations productivity.

counting on the experience and knowledge of leading

In addition, as a content-driven show, DES runs

companies.

on 10 stages simultaneously where more than 450

In addition, we again have the support of institutions

international experts share trends and use cases

such as Madrid City Council, the regional government

on Artificial Intelligence, Big Data, Blockchain, IoT,

of the Community of Madrid, several Ministries of

Robotics applied to different industries such as

the Spanish Government, Business Europe, CDTI, the

Banking, Energy, Health, Industry 4.0, Retail, Tourism

European Commission, Enterprise Europe Network,

or Urban Mobility, among others.

the European Investment Bank, ICEX or Watify. All of

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

#DES2019

them consider DES the event where to promote digital

more complex. Now more than ever, companies must

transformation business and to facilitate cross-border

seek advice and help so that the digital transformation

opportunities.

of their businesses gets real and efficient in a reasonable amount of time. Because if corporations need too

Today, are people still talking more about Digital

much time to apply the Digital Transformation, by the

Transformation than actually transforming their

time they have finished, technology will have changed

companies?

again.

It was like this some years ago, nowadays organization

“

assume that they need to revamp their strategy to

How is the Public Sector doing? Are they applying

continue being a leader or to become one.

DT? To which degree? How will this affect everyday

Initially it was a concept without real implementations,

life?

now their customers and their competitors have made

The public sector is increasingly aware of the need

companies aware of its value, allocate resources to it

to address this transformation, and although the

and look for the best partners to carry it out efficiently.

beginnings were slow, we can assure you that in recent

So there has been a definitive evolution on that side, as

years they have accelerated the process of getting

companies and, especially, their management, see the

closer to the needs of citizens and improving services.

advantages that Digital Transformation brings with

Some countries such as Sweden, Denmark or Finland

it. There is, obviously, still some resistance in certain

are leading the digital transformation of the public

executive profiles (especially the more traditional

sector.

ones), but this is being less and less each day.

In Spain, public administrations have also taken a big step forward in this area, also driven by new legislation

The public sector is increasingly aware of the need to address the Digital Transformation paradigm

promoting the implementation of e-government, for example. However, as the latest study carried out by EY under the title “Digital Administration in Spain” points out, it is still necessary for public administrations to tackle a comprehensive strategic plan for digital transformation.

If

we

focus

on

how

this

modernization

and

What is the real value of DT? Transforming people

transformation is affecting the daily lives of citizens,

or processes?

we can see some examples in the use of shared vehicles

Since the beginning of time transformation has

available in Spain’s cities such as Madrid or Barcelona;

been a constant. The biggest difference of the digital

unification of personal data and medical reports

revolution over the previous ones that came before, is

through national platforms; creation of electronic

the irruption of disruptive technologies and, above all,

administrations or the creation of a Secretary of

the speed of change.

State for Digital Advancement, within the Ministry of

The real value of digital transformation is to satisfy

Economy.

customers (internal and external), who ask for much more than cheap products, demand unparalleled experiences and companies that no longer only think about making money in the short term. In other words, people must be put at the centre of the transformation and the rest will follow.

In my opinion, it is no longer time for awareness, but time for action. We must speed up.

What is the current adoption of these new models & technologies in the corporate landscape?

The use of technologies such as Big Data, Blockchain, IoT, Virtual Reality or Cloud is already a reality in many companies, but much remains to be done.

The development of new technologies, and new applications that we have been talking about for decades, is getting bigger and faster. Adapting and knowing all technological innovations, and how to implement them in a company is becoming more and

MAY 2019

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#DES2019

Henrik von Scheel

Originator of the Industry 4.0 and Leading authority on strategy & competitiveness

Henrik von Scheel has been named as one of the leading authorities on strategy and competitiveness by the Financial Times. Most of his work is applied to national economies, triggers global themes, influences GDP growth, resets policies, and shapes the performance of the fastest growing Fortune 100 companies. At present, he frontiers applying Industry 4.0 to leading organizations, investing in ground-breaking innovations and implementing next generation of wealth creation with the leading “Artificial Intelligence Trading Service” provider.

»»

The 3rd industrial revolution began in America in

the middle of the 19th century with the harnessing of electronics and information technology to automate production. »»

Finally, the 4th industrial revolution began in Ger-

many at the beginning of the 20th century with the combination of the digital, physical and virtual worlds into what is also called cyber-physical systems.

But despite being already the 4threvolution, Industry 4.0 is the biggest structural change in the past couple of hundred years. It is disrupting every aspect of our lives, of

22 //

What exactly is the Fourth Industrial Revolution?

our economy, in every industry and country. And, due to

The 4th industrial revolution brings the fusion of the

its scale, scope, and complexity, this transformation will

digital, the physical and the virtual world, and is the big-

be unlike anything humankind has experienced before.

gest structural change of the past 250 years. In its scale,

This new paradigm marries advanced production and

scope, and complexity, the transformation will be unlike

operations techniques with smart digital technologies to

anything humankind has ever experienced before. It is

create a digital enterprise that will not only be intercon-

disrupting every industry and economy in every country.

nected and autonomous but can communicate, analyze,

And it fundamentally alters the way we live, work, con-

and use data to drive further intelligent actions back in

sume, trade, invest, and how we relate to one another.

the physical world. It represents the way in which smart

Until now, there have been four industrial revolutions:

and connected technologies can become embedded

»»

The 1st industrial revolution began in Britain in

within organizations, people, and assets, and is marked

the late 18th century, with the invention of mechanical

by the emergence of capabilities such as robotics, ana-

production powered by water and steam.

lytics, artificial intelligence and cognitive technologies,

»»

The 2nd industrial revolution began in America in

nanotechnology, quantum computing, wearables, the

the early 19th century, with the use of electricity and

Internet of Things, additive manufacturing, and ad-

mass production.

vanced materials.

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

#DES2019

What impact does Industry 4.0 actually have in to-

productivity and competitiveness. In essence, the cen-

day’s world?

terpiece of Industry 4.0 are actually the people - not

First of all, Industry 4.0 comes in waves. The fourth in-

technology. Ever since the first caveman shaped a flint,

dustrial revolution works as an evolution that happens

humanity has defined itself by the ability to equip itself

in several stages, or waves (of which you can see some

with tools to manage its environment. The Industry 4.0

in Figure 1, below). Each wave unlocks the paradigm

era will be no different.

shift of the next wave and so on. And there are certain

When compared with previous industrial revolutions,

technological requisites that unlock and enable newer

the 3rd and the 4th revolution have evolved at an ex-

technologies at later stages.

ponential rate rather than a linear pace. When trends

Currently, we have entered the 2nd wave of the 4th in-

collide, disruptions happen fast. In fact, so fast, that the

dustrial revolution, whose main characteristic is that it

tectonic plates of productivity and growth are shifting

radically changes the manufacturing industry. It alters

at a speed that reshapes the competitive and social

the way in which companies are going to operate as

landscape, and redefines the boundaries of prosperity,

well as the relationship between suppliers, customers

trade and values.

and other third parties. There are going to be many

“

more interactions between all those parties.

Are the speed and scale of change increasing?

One of the most relevant advantages is going to be the

As I’ve said before, the 4th industrial revolution brings

amount of data that is being generated, and that can be

the fusion of the digital, physical and virtual world,

used to adapt to changes rapidly, or even to anticipate

into what is called cyber-physical systems. Industry 4.0

these changes. The connected ecosystem that is being

is the biggest structural change in the past 250 years.

built, has many benefits and taking advantage of these

In its scale, scope, and complexity, the transformation

is going to generate a competitive edge.

will be unlike anything humankind has ever experienced before. It is disrupting every industry and econ-

The 4th Industrial Revolution alters every aspect of our lives, economy, how we live, consume, work and relate to one another

omy in every country. In fact, it fundamentally alters the way we live, work, consume, trade, invest, and how we relate to one another. You can see, it affects every corner of our life.

The fourth industrial revolution is defining the new boundaries of prosperity, the future of the workplace, and the policies that will lay the foundation for how companies compete and trade in the future. In fact, there are 17 distinct pillars of technology that are

Is there any gap between Industry 4.0 in developed

working simultaneously to bring together the digital,

countries and developing countries?

physical, and virtual worlds.

This is like comparing apples and pears. Anyway, if you

Each of these 17 pillars delivers unparalleled opportu-

really want to compare apples and pears, then the an-

nities for growth and productivity, resetting the com-

swer is “yes”. But the reality is different. Both the G7,

petitive landscape in a scale never seen before with

G20 and developing countries have completely differ-

smart products and new service models. It also creates

ent maturity levels, and different drivers for growth

the next generation of operational excellence, smart

1ST WAVE | 2009-2016

2ND WAVE | 2016-2025

2RD WAVE | 2025...

Digitalization (Internet of Things)

Artificial Intelligence

Quantum Computing

Advanced Analytics

Autonomous Systems

Cybersecurity

Blockchain

Neurotechnology

Smart Automation

Nanotechnology

6G Communications

Bioinformatics

Future of Energy

Advanced Material

Cloud Computing Augmented Reality Robotics 3D Printing

FIGURE 1 // Industry 4.0 arrives in waves of maturity that disrupt everything.

MAY 2019

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DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

automation, connectivity and alignment across all of

set is more important than skills (see figure 2, below).

the value chain.

This is not to say that skills are not important anymore.

In a world that is being disrupted faster than ever, the

But the mindset will be our ability to adopt, collabo-

question is not whether you will join in, but how. An

rate and bridge cross-competencies in specialized ar-

age of disruption, as the current one, requires a re-

eas like Quantum Science, Artificial Intelligence and

thinking of the core differentiation. Differentiation is

Pharmaceutical.

what you do, every day, through repeatable activities

“

to serve your customers better than the competition.

What is the main driver for companies to adopt In-

Each successive disruption erodes old industry borders

dustry 4.0?

and creates opportunities. The Industry 4.0 delivers

Actually, each industry has different drivers, but nev-

unparalleled opportunities for growth and productivi-

ertheless they all have the following common three

ty. It resets the competitive landscape which carves the

stages of adoption:

path for new innovations and new ways of thinking.

»»

Increase Operational Excellence (Stage 1): All or-

ganizations who want to stay in business have to per-

The changes we are immersed in have a scale and complexity unlike anything humankind has experienced before

form and deliver. Hence they all focus on Operational Excellence, i.e. productivity, lower risk, quality, cost cutting, effectiveness and efficiency.

70% of all organizations are based on non-core activities like Human Resources, Finance, Procurement etc.

This is the area where Industry 4.0 enables higher levels of performance to stay relevant in terms of integration and automation through IoT, Artificial Intelligence, Cloud, Advanced Analytics etc.

What foreseeable impact will the Industry 4.0 tech-

»»

nologies have on employment?

it that you are better than your competitors. In most

Improve Growth (Stage 2): The essence of growth

We are in a global market, where skills, price and

organizations the core competitive competencies con-

competition rule. 35% of the skills demanded for jobs

stitute about 15% of an organization. This is the area

across industries will change by 2020. And at least one

where Industry 4.0 is applied in Smart Supply Chain

in four workers in OECD countries is already reporting

Management, Smart Products, Integrated Ecosystems

a skills mismatch with regards to the skills demanded

(upstream / downstream), Smart Automation, Smart

actually by their current jobs.

Contracts (using Blockchain), etc…

The question is: what will be in high demand in two

»»

to five years? We are moving into an era where mind-

age of disruption, it is necessary to rethink what your

Increase Competitiveness (Stage 3): In the current

core differentiation is. Differentiation is what you do, every day, through repeatable activities to serve your customers better than the competition. This is the true

IN 2015 | QUALIFIED SKILLS

IN 2020 | MINDSET OVER SKILLS

Complex Problem Solving

Complex Problem Solving

Coordinating with others

Critical Thinking

only 5% of an organization. But this is the area where

People Management

Creativity

early adopters apply Industry 4.0 to develop the next

Critical Thinking

People Management

oinformatics, Nanotechnology, or Quantum Technology

Negotiation

Coordinating with others

to name a few.

Quality Control

Emotional Intelligence

Is not adopting the Industry 4.0 paradigm already a

Service Orientation

Judgement and Decision Making

problem for companies?

Judgement and Decision Making

Service Orientation

Active Listening

Negotiation

Creativity

Cognitive Flexibility

FIGURE 2 // Which future competence is more important: Skills or Mindset?

24 //

MAY 2019

competitive advantage. Many talk about it, but few actually do it. This is a rare and difficult discipline to master.

It takes months to develop and refine and constitutes

market, service, product or business model such as Bi-

Yes, it is. If you are not adopting the changes, it basically disrupts your operations, business model, partnerships and your ability to stay relevant. And one of the main changes faced during adoption of Industry 4.0 is bridging the gap between strategy, design and delivery.

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

#DES2019

Tomás Martínez Buero President of AI-Network, Artificial Intelligence Professional Association

Tomás has worked in management positions in global technology companies like Intel, and in startups focused on Big Data Analytics and Machine Learning. Since 2000 he has been building teams of engineers and scientists to deliver cutting edge Data Analytics & Artificial Intelligence projects for large corporations.

He is currently the President of AI-Network, the Professional Association of Artificial Intelligence, and a professor for Big Data and BI at the NEXT International Business School.

We know AI can do automation better than any human, but what about the creative aspects of human work?

This is kind of a philosophical question, but I will try to answer it: an Artificial Intelligence System can be as creative as the creators of that system. Most of human creativity is based or inspired on other human creations, on Nature or on a mysterious force that some call God, “the Muses” or just “chance”.

Artificial creativity can only come by other human creations or imitations from Nature, but a machine can’t receive this mysterious force that only humans can… if it actually exists. In any case, Artificial Intelligence systems can create beautiful paintings, catchy music, nice poems, but I doubt they can revolutionize art or literature like Picasso, Mozart or Cervantes.

Who is thinking about the ethics aspects of using AI in conjunction or alongside humans?

There are many institutions that are working on all the ethical aspects related to AI, and our own Association is among them. At AI-Network we have an ethics working group to advise any company or institution that might request it.

Companies and institutions have to be aware of ethical aspects related to privacy, decision making based

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DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

on biases, decisions of machines where several human

But we can dream about how AI is going to make our

lives are at risk, etc. And society will be very sensitive

life easier in 20 years’ time. There are going to be pro-

to all these aspects and will penalize the companies

fessions that will to change or disappear in areas like

and institutions that don’t take this into account, no

transport, mining, construction, health, security, etc.

matter if AI ethics are regulated by Law or not.

More robots and AI systems are going to be much more visible in our daily life, in the same way as we are used

How far are we from Artificial General Intelligence?

currently to cellular phones, tablets, etc., which are

We are very far from achieving what is called Artificial

parts of our lives already.

General Intelligence, but of course, it will be reached.

“

Maybe in 30-50 years. In the meantime, there will be

ML in the industry. Hype or reality for many sectors?

many improvements in what is called specific AI.

It is both, hype and reality. There is hype because there are many executives and managers that are excited

An Artificial Intelligence System can be as creative as the creators of that system

about the new possibilities that open with AI. Or else they believe they have to jump into AI, just because their competitors are doing so.

So now there are many proofs of concept, prototypes, and pilots of ML applications, many of them very close to being in production. The reality is, that today there are few applications in production compared with all

Which companies or sectors are adopting AI tech-

the running projects, but the pipeline is very healthy,

nologies faster?

and very soon we will have many of these projects in

The recent rise of Artificial Intelligence – after 2 AI

production.

winters, as they were called – is due to the generation of large amounts of data that fuels Machine Learning

Is there any place AI can’t reach?

algorithms. This way, the sectors and companies that

Of course, AI is not going to be everywhere in our

produce more data, and the insights we can get from

lives. But at work, all the tasks that can be done by a

them, enables us to either increase revenues, save costs

human, will be done by an AI, sooner or later. Anyway,

or create new business models. And that is where AI is

humans are going to invent new tasks that machines

being adopted. The main industries where AI is start-

can’t do… yet.

ing to be applied are Telco, Banking, Insurance, Ener-

Anyway, without self-awareness, it is difficult that ma-

gy and Retail. But, in fact, all sectors are going to be

chine end up doing the same things as we humans do.

impacted because data is being produced everywhere.

And the so much touted “Skynet moment” is very likely to never happen outside the silver screen.

Please give us your opinion on AI and the inherent

Even with Machine Learning it seems unlikely that

job loss.

machines will gain consciousness and, on top of all,

During all of Human History, Technology has destroyed

try to kill us all. The complexity of the human brain

jobs, but at the same time, new ones have been created.

is so enormous, that the best we can currently hope

In the past, there was enough time to have the people

for is to get somewhat near it, by imitating behaviours

adapted to new scenarios, and despite the stress created

or reasoning. More processing power will only further

in the Society, finally, the people, in general, have benefit-

the illusion of artificial life, but probably never really

ed from the use of new technologies.

get to it.

The challenge is to cope with the acceleration of changes.

The question is if many people are going to fall behind

Are Androids scarier than faceless AI? If so, why?

because they can’t adapt to these new changes in the job

Well, it seems to me that robots with human appear-

market. How well societies are able to cope with chang-

ance will relate better to humans in many scenarios,

es, generally depends on the Education of the population.

and some people might think that these artificial be-

On the other hand, governments have to start working

ings can “betray” their human “masters”.

on concepts like “basic income” or similar approaches.

In the case of “faceless” AI applications, maybe they don’t seem a threat to humans, but nobody knows how

26 //

Can you envision an AI Society 20 years from now?

people, in general, are going to react. Maybe we will

How would it be?

find out that an intelligent home device, that knows

Being honest, the only thing anyone can envision in 20

everything about us and can sabotage all of our digi-

years is that the world is going to be very different and

tal interactions, is scarier… who knows. Frankly, if we

that there are many social and political forces that will

have to fear anything, it shouldn’t be the AI, it is more

influence our daily life.

likely that threats might come from humans.

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

Which do you predict are the next milestones for AI? In the short term, there are going to be more applications of specific IA (no AGI, Artificial General Intelligence) in all industries, related to the use of large amounts of data, in order to get valuable insights. We are going to see more use cases that aren’t Proofs of Concept and are working in real systems, especially to save costs in infrastructures and to personalize the products offered to consumers, just to name some.

“

#DES2019

In the future, robots and AI systems are going to be much more visible in our daily life, in the same way as we are used currently to mobile phones

The conversational assistants will be used in much more interactions with customers and users, and their quality is going to be much higher than it is now. In some cases, they will actually deliver a better customer service than a human assistant may.

And just to mention something that many people are talking about: intelligent drones will be widely used for specific use cases like surveillance, agriculture, and product delivery. We are going to get used to them in the medium term.

On the other hand, it is almost impossible to predict the long term, because there are so many technologies and social trends involved. Maybe, for example, 20 years from now, in some cities, all the cars will be fully autonomous, but this is just a guess.

The Technological Singularity The theory of “Singularity” says that around 2045 an artificial superintelligence will surpass human intelligence and will “disrupt” Human History. Some technologists believe that, at that moment, the human being will be in danger.

Tomás Martínez doesn’t believe that this dystopia will happen, and changes are not going to occur overnight. In fact, he thinks, we all better be worried about global political changes that can provoke social turmoil or about the consequences of global warming. In his opinion, maybe Artificial Intelligence can even save us from these threats.

MAY 2019

// 27

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

David Green Chief Digital Officer for Lynk & Co

We had a chat with David Green, Chief Digital Officer at Lynk & Co, where he is responsible for overseeing the digital transformation for the company’s car products and future mobility solutions. The connected car and the ecosystem around it, is a primary focus of his work at Lynk & Co. Before that, David was responsible for e-commerce, urban mobility concepts for connected and autonomous vehicles, future retail and business innovation at Volvo Cars.

and the strategic partnership with Microsoft, which led to a number of ‘firsts’ such as the HoloLens Augmented Reality Retail Experience”. / F U L LY A U T O M A T E D C A R S Everybody is expecting that, at some point in the near future, self-driving cars are going to be something common, but the question is how far are we actually from really self-driving cars on a real street, surrounded by real people and other drivers? And we mean real Level 5 cars (fully automated, with no human intervention

28 //

Mr. Green, you are a self-confessed ‘tech geek’ and digi-

whatsoever). “Well, the technology is viable today. But,

tal innovator and at Lynk & Co you have the opportuni-

as I said before, it is contextual. Having Level 5 cars in all

ty of living a time where the worlds of automotive and

scenarios and conditions… not yet. And possibly not for

consumer electronics are coming together. “Yes, I was

a long time. Anyway, those types of cars for limited are-

lured by an insatiable quest to challenge the norm and

as and in limited conditions…is something possible. The

change how the world perceives and uses mobility and

technology is already there”.

so I found my footing at Lynk & Co. Before this, I was at

Yes, but, what about the decision mechanisms you have

Volvo Cars and some of my achievements at Volvo include

to implement in the cars, to react to the outside world?

a patented digital key solution, the introduction of the ‘In-

Are they advanced enough, in case of an accident, to

Car Delivery’ service, a ‘Peer to Peer’ car sharing concept

make the proper decisions when life and death are on

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

#DES2019

the line? “I (controversially) suspect that the decision

So who is showing the way nowadays regarding technol-

scenario is a red herring. The real objective is probably

ogy? Maybe Tesla? Or possibly Google? “It is a close race.

to be fail safe. Not to aim to build in value judgement. A

I am not sure anyone knows who is in the lead on any one

“car” made out of light materials, foam rubber, limited to

day. It may come down to who can gather the most data

20 Km/h and only operational in good weather might be

and there may be a radical innovative breakthrough. But

expected only to cause injury in exceptional circumstanc-

they also are not the only teams in the game”.

es. Presumably it is not possible to prevent all fatalities,

“

but getting to “nearly” is a truly massive improvement”.

/ T H E W AY T O T H E F U T U R E Imagine a couple of years from now. What could the

Self-driving cars without Machine Learning are not going to happen

economic impact of hordes of self-driving cars be? “Actually huge. They could radically change multiple industries and individuals as effects knock on. For example in manufacturing capacity, the service and maintenance, aftermarket, parking, petrochemical, and insurance, not to forget the professional drivers“. Do you see the self-driving technologies ending up in other types of

/ TECHNOLOGICAL EVOLUTION

vehicles? “This seems something inevitable…potentially

Many car companies, like Mercedes and VAG, are push-

before cars. Some examples could be farm and construc-

ing the “Connected Car” paradigm forwards. Is this ac-

tion machinery, the logistics sector, public transport, or

tually absolutely necessary to increase the overall “in-

even haulage”.

telligence” of the individual cars? “I believe connectivity

Let’s imagine the following scenario: Transportation

is a supporting feature… but the systems cannot rely on

2030. Please take a guess… “After a rapid transforma-

it for live processing for a very long time to come. There

tion starting in China, many major cities around the

is always a chance of latency or failure”. Talking of that,

world exclude wet-tech vehicles and instead provide cit-

how will 5G mobile technology affect self-driving cars, if

izens and visitors with integrated, efficient, green mobil-

at all? “Well, 5G will improve efficiency, speed up the time

ity solutions. Urban congestion and road deaths are a

to market and open up enhanced features for the cars”.

thing of the past replaced by frustration with occasional

Ok, so which are the technologies that need the most

service outages. Urban spaces given to parking are now

enhancement to get a really self-driving car? “I would

repurposed. Whilst people inevitably complain about

say sensors and processors but, primarily, advanced Ma-

rising charges, the total cost of mobility has dramati-

chine Learning”. And what is the exact role of Machine

cally reduced for everyone and therefore the standard of

Learning in self-driving cars then? “It is critical. We can-

living in multiple ways has significantly improved. Envi-

not create an algorithm for a task as complex as driving

ronment, mobility, sustainability, economic growth and

in the real world without having the systems learning on

personal wealth have all improved for anyone not still

their own”.

impacted by the collapse of multiple seemingly well-established industries”. / I N N O VA T I O N I S T H E D R I V E R If safety is the synonym for Volvo what would be that synonym be for Lynk & Co and why? “Sustainable Mobility. That is our mission”. You are doing some quite

The self-driving car hype

revolutionary things when it comes to the auto industry. How does business technology contribute to your mission of changing the mobility landscape? “It is our foundation and framework, it supports everything we

Self-driving cars are one of the hot topics of the moment. Besides the hype, is

do and drives our capability to effect change. What we

there really something for an everyday use? “Yes, absolutely. But it is down to

call “technology” changes over time. Once upon a time,

the context. For example, some applications of self-driving cars could be the

a stick was high tech, then it became a spear and then a

finished vehicles leaving the factory to the yard and onto a ship. Or else on

bow. Innovation drives change and the pace of change

Parking lots, where cars could go and park themselves, as well as come back

is increasing exponentially. We are not focused on

on their own. Urban transportation would be another possibility. On the other

creating new technology, we instead focus on gaining

hand, rural self-driving cars are probably a long way off, due to the added

advantage from proven capabilities innovating and it-

difficulties rural roads provide.”

erating. However, most importantly we try to ensure that we always put the customer first and not the technology”.

MAY 2019

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#DES2019

Technology at the Boardroom

Antonio Crespo

Shifting Corporate governance towards a more digital focus

Managing Partner

QUINT

quintgroup.com

“

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

There are certain business practices whose signifi-

as opposed to business management - Chief Informa-

cance is directly linked to the responsible entity. IT

tion Officers and CxO’s in general -. The thin line that

Governance is a ripe concept, content wise. But it is

separates governance from management is somewhat

remarkably immature in its practice. It highlights the

vague from the perspective of the “what”, but the real

importance of aligning IT structures, processes and

difference lies in the “who”. In today’s world, the im-

relational mechanisms with the business objectives.

portance acquired by technology and its business im-

So far, so good. The problem arises when we forget

pact is contributing to an increasing role of the digital

an essential point. Accountability for IT governance

agenda in the boardroom.

relies on the governing body - Boards of Directors -,

A lack of awareness in this field by the Board of Directors and its renovation dynamics make it difficult to address IT governance effectively. In the ninth edition of

The thin line that separates governance from management is somewhat vague from the perspective of the “what”, but the real difference lies in the “who” DIGITAL STRATEGY

the PwC report on Corporate Governance (Spain, 2018), two out of the three objectives that would demand more dedication from the Board are the digital strategy, as well as cybersecurity and technological risks. Nevertheless, when it comes to the most valued experience and knowledge, digital aspects scarcely arise in the seventh place, with just 29% of the respondents. There is a clear mismatch between the objectives to be addressed and

28%

TALENT MANAGEMENT

48% 59%

24%

CYBERSECURITY AND TECHNOLOGICAL RISKS

22%

STRATEGY PLANNING

20%

SUCCESSION PLANNING

25% 17%

56%

22%

44%

37% 61%

17%

22%

ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)

12%

REPUTATION

12%

ADMINISTRATORS’ CRIMINAL / BANKRUPTCY RESPONSIBILITY

12%

COMPETITION

10%

51%

39%

RISK MANAGEMENT

10%

46%

44%

BOARD AND COMPANY DIVERSITY

10%

DIRECTORS’ TRAINING

7%

CRISIS MANAGEMENT

7%

BOARD’S PERFORMANCE 5% FISCAL STRATEGY 2%

61%

27%

44%

44%

27%

61%

33%

58%

46%

46%

29%

63%

27%

68%

39%

MUCH MORE TIME

59%

SOME MORE TIME

FIGURE 1 // Which areas, functions or aspects would require more time to be addressed by Corporate Governance?

SOURCE: PRICEWATERHOUSECOOPERS, NOVEMBER 2018

30 //

MAY 2019

NO CHANGES

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

#DES2019

STRATEGY

71% 60%

FINANCE 55%

INDUSTRY KNOWLEDGE 43%

INTERNATIONAL CORPORATE GOVERNANCE

36%

AUDIT AND RISK MANAGEMENT

36%

DIGITAL / IT / CYBERSECURITY

29%

LEGAL AND TAXES

19%

OPERATIONS CORPORATE SOCIAL RESPONSIBILITY

14% 10%

FIGURE 2 // Which knowledge and experience are the most valued for directors? SOURCE: PRICEWATERHOUSECOOPERS, NOVEMBER 2018

“

the most valued profiles... Each of us can make our own

unlocking user files. Big organizations like Telefónica,

judgements.

the Spanish multinational telecommunications giant,

In public companies, the increasing influence of institu-

were deeply impacted. This episode, together with the

tional investors, the recent legislation and the Corporate

increasing risks derived from disruptions, have marked

Governance Codes are accelerating a necessary board

a turning point in the consideration of these matters by

refreshment. In Spain, the Capital Companies Law was

the boardroom. Business continuity risks and the direct

amended by the end of 2014 to improve enterprise-wide

impact in companies’ bottom line have raised technolo-

corporate governance. It defined a list of non-delegable

gy to a primary role.

powers for Boards of Directors in public companies.

The banking industry is possibly the most advanced in

Crucial among these is the business strategy. Therefore,

this respect. The two major Spanish financial institu-

if we believe that technology is strategic nowadays,

tions, Santander and BBVA, have specialized commit-

governance bodies must strengthen their digital compe-

tees - under their Boards of Directors - for the digital

tences and knowledge.

topics - Innovation & Technology Committee and Technology & Cybersecurity Committee, respectively -. Both

Business continuity risks and the direct impact in companies’ bottom lines have raised technology to a primary role

committees are chaired by the Group Chairman, reflecting how IT is empowered to the highest level.

Nevertheless, the way ahead is certainly long and not free of difficulties. Digitization is still a new subject, and we might need a generational change in the boardroom to allow it for a greater role and visibility for it. Many companies have already started this journey by adding independent non-executive directors with the necessary profile. This trend has just begun and will be con-

In the international context, the Sarbanes-Oxley Act

solidated over the next coming years. Those companies

(2002) enacted in the US requires public companies to

advocating for strengthening their digital competences

establish adequate internal controls over financial re-

in their Boards will be much better qualified to define

porting. European organizations based in the US have

and govern successful strategies and provide maximum

adopted these practices, thereby contributing to its in-

value to their shareholders in this change of era.

fluence overseas. Companies that are required to meet SOX compliance regulations must have robust IT security, logging and backup systems.

In 2017, Spain was one of the first countries affected by the WannaCry cyberattack that froze up computers across the planet and asked for money in return for

MAY 2019

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#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

Leading the rise in Virtual 3D Interactive Events Virtway Events

Several trends are transforming the B2B business, and

/ MAIN BENEFITS OF INTERACTIVE 3D

companies must innovate to position themselves and

VIRTUAL EVENTS

to maintain their customer satisfaction, using techno-

Thanks to this technology, business people, employees

logical advances. Gamification, for example, makes

and customers can meet in a virtual space allowing an

relationships more dynamic and encourages network-

almost real interaction between them. It is undeniable

ing. And this technology allows you to organize online

that the integration of virtual events in a company’s

events where participants interact in the most similar

business plan offers numerous advantages. And here

way to the possible reality: Virtual 3D Worlds technol-

are some of the most important ones:

ogy, applied to the business world.

»»

Thanks to its interactive 3D technology from the world

source. These virtual events represent an enormous

of simulations, each person controls an avatar that al-

cost saving both for the organizer and for the partici-

lows them to move freely, talk with other users using

pants, not only because of travel and overnight stay ex-

their microphone and even participate in fun interac-

penses, but also because of the cost of building a stand

tions turning the encounter into a simple, friendly and

and the people taking care of it. As the organizational

really efficient experience. It is what we could call the

expenses decrease, your profit margin increases.

‘virtual transformation’.

»»

This new style of events is designed to complement

ber of visitors. Events can be launched globally at an

the face-to-face sessions, becoming an important help

unprecedented speed and reach an international au-

when it comes to increasing the impact among the pub-

dience. Given their low cost, these actions can even be

lic and improving engagement. In this way, it is possi-

carried out several times a year, to try and maintain the

ble to extend a physical event to the online world in

loyalty of a specific public as well as strengthen the or-

order to reach a greater number of attendees.

ganic growth.

José Antonio Tejedor CEO

V I R T W AY

virtway.com

32 //

MAY 2019

Significant cost savings as well as an income

Increase of the geographical area and the num-

#DES2019

A new generation of interactive 3D virtual worlds has been born that allows to connect hundreds of people simultaneously, from any device, interacting with voice and movement in real time. And Virtway positions this technology as the present and future of

»»

Carbon footprint reduction. The infrastructure

savings not only affect the organizer’s pocket, but also generate a more than positive impact on society and the environment. Bringing together so many people from different places in the same space, in addition to the effort it involves, produces a large carbon footprint, raising pollution. In Spain alone, the average carbon dioxide (CO2) emissions of vehicles increased in 2018 by

online events.

1.82% according to MSI data.

Thus, the virtualization of events and congresses eliminates the environmental impact and is a new way for »»

*

Efficiency: networking and proximity to brands.

companies to contribute a little to the battle for the pres-

These events are more than just videos or online confer-

ervation of the environment.

ences. They are a networking platform, where attend-

Increasingly, companies have become more aware of

ees can interact with each other and with brand manag-

the problems that the society faces regarding pollution

ers to create relationships and alliances as efficiently as

of the environment. And eliminating the carbon foot-

in a in-person event.

print of their events, through their virtualization, has benefits for everyone.

3D interactive virtual events help reducing exhibition costs, eliminating travel and geographical barriers

Using this type of technology can provide a clear competitive advantage, since the real added value is provided by the event organizer thanks to his knowhow and experience. The technology enhances the organizers’ creativity by allowing them to go beyond the limits of the real world, which can be a real advantage for achieving the goals the customer who hires the event wants to accomplish.

»»

Accurate big data. An essential factor after an event

/ S U C C E S S S T O R Y: ‘ I I N T E R N AT I O N A L

is the ability to analyze the gathered data with the great-

TA L E N T F O R U M ’

est precision. Apart from the attendance registers, the

3D virtual trade-shows represent a totally accessible

important thing is to know our audience, and here the

and easy to manage solution: its operation is the clos-

metrics and participation are fully controlled: this virtual

est thing to a face-to-face exhibition. The participating

technology is an ally for the companies, offering them the

companies have a stand that is personalized with their

most accurate data possible about their audience.

corporate brand. And in it, its commercial or market-

MAY 2019

// 33

#DES2019

ing staff can tend to visitors the moment they require

the audience, the networking spaces and the workshop

it, promoting brand products and/or services. They are

rooms.

also able to organize talks or lectures for hundreds of

The International Talent Forum 2018 has demonstrat-

people, as well as networking sessions, product show-

ed the success this type of event can have: virtual fairs

rooms, etc.

allow the experience to be more pleasant and relevant,

In the same way that it happens in a face-to-face trade-

and also help organizers and visitors achieve their ob-

show, the visitors can access the different pavilions, vis-

jectives, creating a more satisfying engagement.

it their stands and speak with their own voice through

*

avatars with the rest of the attendees or sponsors.

Virtway Events, a pioneering Virtway product in the creation of interactive 3D virtual platforms for events, has an extensive experience in the 3D virtual world. Its first online fair, the International Talent Forum 2018, showed all the advantages and possibilities offered by an event of this type.

Virtualizing events reduces the carbon footprint, and has a greater profitability and comfort for organizers

From May 7th to 10th, 2018, Virtway Events organized the first edition of the International Talent Forum; a 3D virtual fair where the attendees could go without

/ OTHER POSSIBILITIES

actually leaving home. They just needed an Internet

As is the case for many technological evolutions, the

connection and a link to the Virtway Events platform.

technology for virtual events can be applied to a se-

This event was aimed at Spanish-speaking people in-

ries of other scenarios in a quite fitting way. These are

terested in job search, entrepreneurs and those who

some of the opportunities that open up with it:

were eager to learn. There were accelerators and in-

»»

cubators such as Wayra, Ances, Everis and Accenture.

evolution of virtual worlds to connect and facilitate

They presented a selection of start-ups, and gave the

interaction allows to take Speed Networking to a

entrepreneurs the opportunity to show their projects

whole new level: Online Speed Networking or Virtual

looking for financing.

Speed Networking, which is a remote format that al-

This innovative forum had 3,960 visitors, 54% of which

lows you to enjoy the advantages of speed dating for

came from Spain and the rest from Peru, Argentina,

businessmen without having to leave the office. It al-

Uruguay, Colombia and Mexico, and they stayed con-

lows to expand the target audience and reduce travel

nected an average of 43 minutes. The 3D fair had more

and logistics costs without detracting from the expe-

than 44 stands distributed in two areas. The program

rience itself.

had a great variety and was very complete throughout

The Virtway interactive 3D space allows the creation

the 4 days, with a total of 53 lectures distributed among

of a “dating” area for different companies, distributing

34 //

MAY 2019

Speed Networking Sessions. The tremendous

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

the space in an intuitive way, similar to a real event,

/ T H E W AY T O G O

and with the advantage of giving more prominence

Virtual Events aren’t entirely here to replace face-to-

to the brands. With its cutting-edge technology (Voice

face events, at least not for now. But they serve as an

over IP, 3D Audio, Multimedia content ...) it allows a

enormous complement to them. Their advantages are

whole range of formats and ensures smooth communi-

clear, and they open up a whole new range of mar-

cations, without delays or cuts.

keting and promotion possibilities, with the delivery

»»

Beyond webinars. The use of 3D audio to position

of new media types and completely personalized ex-

sounds anywhere in the event, the ability to project

periences. This is something that was impossible in

your presentations and a live voice transmission are

the past with existing online technology. And in the

some of the features that will make the experience tru-

end, this may be the convincing argument for many to

ly unique to your audience. In addition, you will have

make the adjustments for Virtual Events.

the ability to access a complete set of metrics that will

*

allow you to draw conclusions based on user behavior. »»

Team Building Activities. One of the most innova-

tive ideas for this online platform is to use interactive 3D avatars, which simulate each of the remote workers and also those responsible for the activities aimed at training these teams.

Virtway Events has developed a very advanced technol-

#DES2019

The technology for virtual 3D events applied to the world of virtual networking offers enormous potential

ogy to offer stimulating experiences to remote workers in a virtual world. Thus, they can attend numerous group activities related to virtual training, from games and Escape Rooms to conferences or meetings. »»

Employee Training. We have a specific scenario

for employee training. This allows companies as well as employees to access a quality training without having to travel to a specific site, which saves a lot of time and money (since there is no room to rent, no travel expenses nor time lost for travelling). All kinds of activities where the participants have a guide can be created, and they have to follow the guidelines while the activity is in progress. Once this activity ends, the trainer has a large number of metrics at his/her disposal, in which he/she can see who has answered all the questions correctly, how long it took to do it, with whom the person has spoken, if the person has visited all the required scenarios, and lots of additional data.

What makes Virtway’s technology unique?

Virtway’s advanced 3D technology is pioneer in the world of online events, leading the way for this new generation of virtual activities. Beyond the benefits and success stories, Virtway has many unique characteristics making it the most advanced virtual 3D event technology on the market. Their virtual platform can be accessed by anyone from anywhere in the world with an internet connection and is the only one on the market that can be directly accessed from mobile devices. Additionally, event participants can connect via their personal tablets and computers.

There is no need for additional hardware or expensive VR headsets to access their virtual events. Virtway’s virtual world is equipped with 3D audio and avatars that communicate in real-time with Voice over IP making it more life-like than ever. Conversations take place in individual or group settings in the exact moment, no need to click to connect.

The technology allows for large events, networking activities, group safety training and virtually any real space or scenario to be recreated in the virtual world. To top it all off, Virtway technology is the only one that counts with secured proxies and firewalls to provide top levels of security and privacy within companies. The sky’s the limit thanks to this unique and advanced 3D technology.

MAY 2019

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#DES2019

Juan Francisco García Strategy & Business Development Manager at Grupo CMC

“Technology exists, it is among us. The idea, however, is to “package it” and create specific solutions that allow its application in certain industries or specific business cases”. For Juan Francisco García, Strategy & Business Development Manager at Grupo CMC, technology - and especially data - is a means to optimize processes and operations and to offer

group has and turn them into solutions capable of solving specific business cases for our customers”. / T H E I M P O R TA N C E O F D ATA Nowadays, data is something fundamental in any business process and it’s vital to use it and activate it in order to learn from the past and understand -and capture- what is happening, in order to improve decision making. These capabilities are exploited thanks to the EAP platform, an analytical portal that integrates indicators, KPIs or dashboards, geomarketing (overlapping influence areas, population control for

real value to Business.

the market, etc.), as well as behavior patterns analysis algorithms.

“This allows us to discover trends, make predictions and

36 //

Juan Francisco García is a fervent defender of data,

simulate the future to decide what actions should be im-

which he calls “the oil of the 21st century”. He has

plemented. Through Machine Learning techniques and

over twenty years of experience in the analytics field.

information history, algorithms are learning to be able

In fact, he has founded several startups specialized in

to prescribe the new actions to be developed”.

this field; the last one was DatKnoSys (Data Knowledge

Now, artificial intelligence is allowing us to bring that

Systems), which joined CMC Group two years ago and

context to a scenario closer to the way people speak,

enabled this company to be provided with the EAP an-

think and act through the interpretation of natural

alytical platform (Enterprise Analytical Portal).

language or voice, the text analysis (contracts, claims,

Apart from his role as Manager for Analytics and

social networks ...). This allows, through a chatbot, to

Big Data, Juan Francisco is responsible for business

interact directly with end users, in a portal or a call

development and the group’s strategy. “My goal is to

center, answering questions or receiving and launch-

integrate the different technological solutions that the

ing requests for services.

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

“We seek to know what happens in the company, through

tourism. In all of them we always have large volumes

current and historical data, which will allow us to make

of data, and many users who are interacting with the

decisions or find out trends. But, in addition, we can com-

company and whose behavior we should analyze with

plete it with all kinds of unstructured data to feed the al-

two objectives: to offer a better and more personalized

gorithms and improve them”.

service, and be more efficient optimizing all operations”.

If we translate all of this into specific cases, we are talking about optimizing the most frequent operations in a call center. The use of artificial intelligence allows us to understand the incidents, catalog them and give a quick and accurate response to the user. All this, using natural language to interact with the client and acting on traditional systems to capture information about their

“

profile and to fully customize the response.

#DES2019

It is all about helping the company improve their results by optimizing internal processes and costs

“In the end, it’s about helping the company improve the results, increasing its profit by optimizing its internal processes and costs, and improving its positioning in the

Although the adoption of analytics and decision mak-

market”.

ing based on the data is progressing, there is still a long way to go. Providers have a big say in this. They must

/ LEARN, IN ORDER TO OPTIMIZE

be able to adapt these solutions to each company so

What we needed is to learn from what we are already

that they really have an impact on the bottom line.

doing in order to optimize -processes, time and costs-

They should also help them improve their service, op-

and, at the same time, enrich our systems with infor-

timize their operations, as well as better understand

mation that allows us to make better decisions. That is

their customers, offering them the right products and

the way of the data driven company.

services portfolio, as fast as possible.

As an example, Juan Francisco tells us about one of his

One way to speed up the adoption of this type of tech-

solutions, which is based on social networks analytics.

nology is giving companies access to different formu-

Traditional social network analytics seeks to under-

las such as, for example, pay-per-use. “We try to make

stand the reputation of companies or their stakehold-

that the acquisition barrier is not an economic one, so

ers. Through this tool, social networks are used as a

that the companies can use artificial intelligence tech-

source of online learning, which can complement the

nologies via a pay-per-use model. They don’t need to

analysis made by a purchasing or financial department

buy the technology, but just pay for its use and benefit

regarding the risk scoring of a client or supplier (busi-

from it”.

ness registers, tax payments, etc.). “But if the company has implemented an ERE (a major employee dismissal), is related to a corruption case, has debt claims or any other problem that may be relevant, that immediately goes to social networks, websites and blogs”.

This tool collects information in real time and is able

Smart mirrors

to determine the type of risk to which the company is exposed (financial, human resources, reputation, CSR

Grupo CMC has invested in the Jogotech company, which has developed

...). And all of this information complements the most

intelligent mirrors that allow to customize the buying experience. They are

traditional financial risk studies, assigning certain

already installed at stores of various Inditex brands, at Adidas or at H&M. The

weights to each factor.

user interacts with the mirror, can get information about other sizes or colors

“Data analytics applies to everything, to IoT, security ...

available at the store, or get recommendations on other items that combine

each of the projects we do are recording data that, prop-

with what is being tried on.

erly related, has an incredible value”.

The salesperson receives the alerts through a smartwatch, and can then bring certain clothes to the changing room according to the specifications that

/ INDUSTRIES AND SECTORS

the mirror has selected. Finally, it is possible to make the purchase from the

All of the above applies to all types of companies and

mirror itself using any payment gateway. This solution allows improving the

sectors, although it is usually companies with large in-

customer experience at the point where the purchase decision is made (the

formation volumes - typically B2C - that need the most

changing room), and can capture all kinds of information regarding the process,

being successful in their decisions and strategy, in or-

in order to continue improving the experience and the products offered to the

der to develop their business properly.

customer.

“We work in all types of industries and sectors: banking, insurance, manufacturing, telco, automotive, retail or

MAY 2019

// 37

#DES2019

Sensorization at the BBVA “Sail” building This is an iconic building in Madrid, which we have equipped with intelligence,

ing sensors to the buildings in order to get information

installing nearly 120,000 sensors that allow us to monitor everything that is

about how many occupants are there right now, the

happening, as well as adapt certain parameters according to dates, preferences,

consumption of energy or water, the temperature, au-

sustainability... Apart from this, it also allows employees to reserve parking

tomating the management based on all this information

spaces in an automated fashion through a mobile application. These same

-internal and external- so that they are able to self-reg-

technologies allow identifying the available spaces and guide employees to the

ulate and achieve greater energy efficiencies to make

appropriate spot when rotating job policies are applied.

them more sustainable.

“The information returned by the sensors allows us to

“

learn from different situations and take the next step towards predictive sensorization. For example, the building

Each one of our projects is recording data that, combined in an appropriate way, has an immense value

could be capable of switching on a light because it knows that there is a meeting scheduled in a certain room and it is getting dark”.

This can also be applied at home or in the hospitality sector (Smart Home and Smart Room), for an automated and customized lighting and temperature management, playing music or offer certain TV channels, etc. / SECURITY

38 //

/ A N A LY T I C S A N D I O T

Obviously, security is a fundamental aspect. At CMC

IoT is a particularly favorable scenario for applying

Group we have a security division with three main

analytics. For example, CMC Group is using it in areas

lines. One is Identity and Access Security to ensure that

such as Industry 4.0: like plant automation and indus-

whoever accesses a system - or a physical or digital en-

trial processes, photovoltaic fields or simply in supply

vironment - is who they say they are, and we can be

chains and manufacturing.

able to know their access rights or trust relationships

Another of its applications are intelligent buildings, or

through federated identity management for collabora-

a BMS (Building Management System). It’s about add-

tors and customers.

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

“

#DES2019

For this, we have a solution (Prot-On) that allows mask-

These intelligent SIEMs learn all these patterns and, if

ing and encrypting information to protect files, access

they detect certain accesses, quickly warn or block the

and activities both inside and outside of the organiza-

process, or start a programmed action.

tion. “You can decide who can access which documents,

“They are intelligent in the sense that they act before

even if they have been forwarded to third parties, and

the problem occurs, preventively, and they warn of what

you can define expiration dates or prevent anyone from

may be happening. It is the company that decides the

accessing information in the case of theft or loss of de-

type of actions that can be carried out in each case”.

vices with sensitive information”.

Finally, there are the ethical hacking services. These are professionals who apply different types of tech-

The acquisition barrier should not be an economical one, because AI technologies can be used in a pay-per-use model

niques through which they perform vulnerability audits in companies. With the relevant permissions and authorizations, they try and simulate attacks on companies (websites, systems access, etc.) to discover possible vulnerabilities at the different points of access.

And they correct them before an external hacker can take advantage of them.

“Coincidentally, at #DES2019 we are going to have a presentation of ethical hacking cases. The person in

Another of the solutions is everything related to cyberat-

charge of this at Grupo CMC is going to show a series

tacks, access to networks -including industrial networks-,

of devices that allow cloning cards or identification de-

attacks on devices or the exploitation of vulnerabilities

vices, as well as stealing internal information simply by

in systems, websites, passwords, and so on. In this area

connecting the mobile to the computer via an USB ca-

it is important to highlight its intelligent SIEM (Security

ble”.

Information and Event Management) solutions.

Traditional SIEMs allow you to correlate logs to analyze who is accessing what, when, and so on. These access logs should be monitored regularly to know what is happening. But, currently, the sheer volume of these accesses makes an adequate analysis of all this activity

“

impossible.

At #DES2019 there is going to be a presentation about ethical hacking cases “Here we are applying artificial intelligence. This new generation of intelligent SIEM learns from the attacks the company has suffered before, or those of other companies, accessing logs that are available through open source community databases. This allows you to detect improper access patterns or learn about attacks that could occur in your company”.

Descriptive, predictive and prescriptive Analytics CMC BigData

MAY 2019

// 39

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

Social Factory, the talking factory

Instant messaging and corporate social networks, Factory 4.0’s new allies

The manufacturing plants where we create the products and other goods that make our society’s daily life possible, are subject to a constant evolution. In the era of the Fourth Industrial Revolution connectivity, automation and intelligence define the operation of those factories, in which, thanks to Social Business technology, everything, including people, machines, robots, systems and processes, maintains a constant

Technologies that were born decades ago, like automation, Artificial Intelligence or industrial robots, have a notable presence in the so-called smart factories, which are the main actors of Industry 4.0 and the result of the Fourth Industrial Revolution. This concept, coined by the German economist and businessman, Klaus Martin Schwab, arises from the convergence of the physical, digital and biological worlds, and is impacting directly one of the fundamental pillars of societal development: the manufacturing activity.

As it is the case for Smart Cities, the leading factories distinguish themselves by their capacity for self-diagnosis and self-management. In addition, and thanks to the advanced management of the data they get from their own operations, they can have just-in-time manufacturing and are able to make decisions in an inde-

dialogue.

pendent way, so to either avoid or else give an agile and effective response to any incident that may be translated into a loss of quality or productivity, or an increase in costs, both of which are the two main enemies of profitability.

40 //

MAY 2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

Óscar Pierre Presidente y CEO

AGGITY

aggity.com

#DES2019

/ SOCIAL MES, EXTENDED GOVERNANCE

As a communication network that allows the connec-

Experts agree when they say that the technologies asso-

tion and communication of “things” with other ele-

ciated to Industry 4.0 allow a reduction of downtime by

ments in the network, albeit human or physical, IoT is

45% and at the same time increase production capacity

one of the pillars of Industry 4.0 and the main thread of

by about 25%. But enjoying these potential improve-

a conversation that, thanks to Social Business technolo-

ments requires always a correct government that, in

gy, expands its reach and acquires a ubiquitous nature.

manufacturing environments, relies on MES (Manufac-

Thanks to the power of instant messaging and corporate

turing Execution Systems). They are in charge of moni-

social networks, Social MES transfers the continuous

toring, controlling and documenting each and every one

factory dialogue to a friendlier environment, that is easy

of the different processes that make the transformation

to use and essentially collaborative. In the Social MES

of raw materials into finished products, a reality.

world, factory directors, production managers, quality

From their earliest origins, MES systems have been best

and maintenance managers, as well as technicians and

allies in the proper working of factories in a multitude

operators communicate with machines, robots and pro-

of sectors, ranging from food and beverages production

cesses, as do systems, in the form of chatbots.

to the pharmaceutical industry, through the automotive

The result is, essentially, more intelligent, more agile

industry, the manufacturing of equipment goods, etc.

and efficient and with greater flexibility to adapt to the

Those industries are subject to highly demanding reg-

acceleration of the innovation cycles in product devel-

ulations regarding the control and documentation of

opment and to the increasing variation of market de-

events, actions and processes.

mands. In the same way, in this new stage, the factory

A factory’s MES systems constitute the link between the

can increase its capacity, in order to be ahead of any

operational systems and the information systems and

possible incident that may affect any part of it, from sup-

are located, specifically, at a level 3, between the level 4

ply to quality control. In addition, based on the analysis

of ERP systems and levels 0, 1 and 2, corresponding to

of its operations history and based on different possible

process control. From this place, the MES systems inter-

scenarios, the factory gets a vital ability: the possibility

vene in four essential areas: production, quality, logis-

of advanced planning.

tics and maintenance - where, as the executive arm of

*

the ERP systems, they provide control and intelligence.

/ SOCIAL KNOWLEDGE IS KEY

Over time and simultaneous to the advance of auto-

In the same way that shared knowledge is one of the

mation, sensorization and robotics, MES systems have

keys to the success of any human enterprise, it is also

continued to evolve and, in parallel with the sociali-

essential to achieve excellence in manufacturing. Shar-

zation that is taking place in the information systems

ing knowledge implies an advanced data management,

environment, they have obtained new capabilities that

as well as an easy access to it by each and every one of

add to its current abilities the dialogue between people,

the elements in the chain, whether be they human or

machines, robots, systems and processes.

not. The Social MES systems allows sharing that knowledge in relation to what is expected to happen and what

MES systems integrate new capacities to add dialogue between people, machines, robots and systems

really happens throughout each and every one of the production cycle processes.

Social MES is, in short, the instant messaging and the corporate social network of 4.0 Factories, and the new paradigm of Industry 4.0. It is the backbone of factory operations and, therefore, essential to guarantee the almost instantaneous adaptability of manufacturing plants to fluctuations and variations in market demand or other factors (availability of raw materials, new la-

/ S M A R T A N D S O C I A L FA C T O R I E S

beling requirements, etc.). It also ensures end-to-end

The new generation of Social MES systems incorporates

traceability that guarantees excellence, both for regula-

a layer of Social Business technology that, in the form

tory compliance and for customer service.

of instant messaging applications and corporate social networks, allows the dialogue that makes it possible for factories, to not only be smart, but social, thus multiplying their intelligence. This progress is the result, on one hand, of the growing communication capabilities of machines, robots and all kinds of sensor objects through the Internet of Things (IoT) and, on the other, the growth of Social Business technology.

MAY 2019

// 41

#DES2019

Ferran Serrano

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

Digitization for a better future T-Systems new digitization strategies for businesses

Marketing and Communications Director

Growing concerns worldwide about issues such as eco-

that will set out both the way forward and the sustaina-

nomic sustainability, integrating and developing dif-

ble development for the coming years.

T- S Y S T E M S

ferent regions and protecting the environment make it

This list of pending tasks makes an open discussion be-

clear, on the verge of the 2020 frontier set by the Euro-

tween the main social actors— institutions, companies

pean Union almost a decade ago, that many tasks and

and citizens—to set out the vision of the Europe we

challenges remain for our continent to fulfil the strat-

want and how we want to build it more essential than

egy’s main goals. Europe needs to improve its competi-

ever. As part of this debate, we also need to determine

tiveness, make its economic model more flexible, invest

the role that innovation and technology should play.

in sustainable growth and encourage institutions, com-

This is an unquestionable opportunity for the ICT sector

panies and citizens to act together to create a roadmap

to show the potential of technology to build sustaina-

t-systems.com

ble and environmentally friendly economic and social

The sustainability challenges being faced by society today bring about the urgent need for an open discussion between institutions, companies and society about the economic and social model we wish to foster. As part of this debate, we will also have to define the role technology must play in helping us build the sustainable future we want.

42 //

MAY 2019

models. / A S U S TA I N A B L E E U R O P E The need to overhaul the socio-economic model that currently prevails worldwide has led the European Union to create a new strategy called Project Europe 2030, which is based on the 17 Sustainable Development Goals (SDGs) published by the United Nations in 2015.

The project’s aim is to promote a framework for action that will allow for coordinating institutional, business and citizen strength to promote and achieve truly intelligent, sustainable and integrating growth, which will also be applied to three different areas: economy, society and the environment.

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

#DES2019

The Sustainable Development Goals are the foundation

specific benefits for the user and the context in which

on which to construct a debate as they counterbalance

we are driving.

these three fields within five different areas of action

For instance, applying connectivity technologies com-

that are considered to be essential to achieving a sus-

bined with IoT means the car can transmit information

tainable and egalitarian society. These areas are: human

about location, conditions and use, which leads to in-

dignity, regional and global stability, a healthy planet,

creased security for users. In the case of public transport,

fair and resilient societies and prosperous economies.

for instance, this means municipal vehicle traffic can be

Even though it could be said that technology does not

regulated more efficiently, thus leading to energy and

have much of a role to play in many of these aspects, in

time savings. It will also lead to autonomous driving in

actual fact, we already have examples where applying

the future. Cloud Computing technologies also come into

technology has led to the implementation of projects

play, compiling the information transmitted by those

that have improved the lives of citizens with special

connected cars and storing them so Artificial Intelligence

attention paid to the environmental aspect, or the de-

technologies can process the data and extract or establish

velopment of business models that make the economic

relationships that our own brains would be incapable of

structures we have known up until now more flexible.

doing. The benefits of using this technology include the

In fact, within the global debate that we must launch

possibility that these connected cars might have zero

at all levels, the major challenge for the global tech sec-

emission systems, thus reducing their environmental im-

tor comes from sharing technology’s possibilities for

pact through a combination of engineering and the latest

achieving an integrating, economically sustainable and

technological advances.

environmentally friendly society.

*

/ D I G I T I Z AT I O N I S T H E WAY F O R WA R D

Cloud, Connectivity and digitization to boost sustainable development worldwide

Technology provides institutions, companies and society itself with a tool with which we can actively collaborate to build the society of the future, based on the principles of economic, social and environmental sustainability being demanded by today’s world.

That is why it is essential to promote the digitalisation of the business world and therefore boost its integration

/ CLOUD AND IOT ARE THE GLUE FOR

into the sustainable economic models we are current-

THE NEW TECH

ly trying to find for Europe and the world. We should

In that regard, technologies such as Cloud and Connec-

take advantage of technological solutions to achieve a

tivity are allowing us to draw up new applications that,

twin goal. On the one hand, technology promotes more

for instance, bring regions that were previously distant

efficient and effective business models, which allow for

closer together through the option of sharing informa-

better management of available resources while also

tion at any time and in any place. These technologies

adopting more flexible economic models that will drive

are letting us build sources of accumulated knowledge,

a company’s current and future development. On the

where the co-operation of very different actors means

other, accessing technology promotes a cycle of inno-

we can analyse and design more realistic social mod-

vation-based growth that drives a new culture within

els, which make more efficient use of the resources

a company, with a new way of thinking and envisag-

available. That is why we at T-Systems are committed

ing the context, its needs and the solutions that can be

to these technologies as a means of developing robust

provided, which, in turn, transcends the company and

digitalisation strategies to help companies boost their

touches society as well.

business outcomes. Let’s Power higher performance!

With this in mind, it would be very bold to say that tech-

is the claim that represents this vision of the role tech-

nology is the answer to society’s current challenges, but

nology should play in building the future by working

the tech sector undoubtedly has plenty to contribute in

from the present.

the search for a shared path for institutions, companies

This relationship between technology and sustainable

and citizens towards the Europe and the sustainable

social development may be easier to envision if we talk

world of the future.

about technologies such as Artificial Intelligence or the Internet of Things. Let’s consider, for instance, the case of the connected car. This is a very specific example and a concept with which we are already very familiar. Very different kinds of technologies converge in this ‘connected car’ and each one opens up a range of possibilities, both present and future, while also providing

MAY 2019

// 43

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

Identity management The next step forward for digital companies

The digitization process of our lives is advancing steadily and even for identifying ourselves in order to sign a contract o service, we don’t need to be there personally, as there are enough digital proofs we can present, like biometric ones, to verify that we are who we say we are. CMC’s O2.Digital platform is able to identify documents and people via Machine Learning and biometric parameters, to simplify

ments like contracts o legal documents. This speeds up the processing and only in those cases where the system has doubts, a human is involved to review a document in order to verify everything is ok.

But we go further. We do not only support simple identifications like password logins, but those that are biometric, like voiceprint, face identification, fingerprints or even behavioral IDs. So we are able not only to identify documents, but people. The interesting part is that you can interconnect several of these technologies (which, incidentally are modular) in a single business workflow, in order to solve the problem at hand at any moment. This can range from sales to internal leave management, access control, work order validations….and so on.

Any type of business process that involves parties who

a lot of day-to-day processes.

exchange information and who need proper identification for that exchange to happen, can be solved with our platform. And all of this is running on top of an au-

Right now, time is a very valuable asset for everyone.

dit system which generates the electronic proofs (like

Our lives are usually quite stressful and some process-

digital signatures, timestamps, and so on) in order to be

es, like presenting official documents, signing contracts

able to provide a traceability of all the logged processes

or any other instance in which someone has to iden-

and identifications. And it does it with a great enough

tify him/herself in person, just take an extraordinary

validity to get this information admitted into court,

amount of time we, sometimes, just don’t have. And that

should the need arise.

is where our platform steps in with its Identitity Man-

*

agement features, for example.

/ CONTRACT SIGNING Imagine you want to change your power grid provider.

We use Machine Learning to identify the important parts in complex documents, like contracts

This usually involves going to a branch office of the new provider you have selected, sign a contract, bring some documentation with you, etc. But this involves finding out where the nearest branch office is, and going there at a certain time, when it’s open. In today’s life, this may be a problem. A couple of years ago we did a project with a Spanish utility company in order to implement remote identification. Once the customer knows what products or services he wants, the company sends him

44 //

The main traits of our platform are its holistic orienta-

an e-mail with a link where he can access the platform

tion and the fact it is really customizable. We actually

to sign the contract digitally. There are several ways to

make it a point to try and solve any problem a custom-

do this:

er might have, in any workflow or business process

»»

he may need. The platform is, actually, a kind of task

on his phone, he has to enter in a certain timespan at

orchestrator, that allows any exchange of any type of

the service provider’s web.

document, with any party. We support reading iden-

»»

tification documents by OCR, or we can use Machine

call to the service agent and not only shows his face to

Learning to select the important parts of complex docu-

the camera, but also the necessary documents that iden-

MAY 2019

OTP codes. The customer receives a 4-6 digits code

Video identification. The customer does a video

#DES2019

Alejandro Barrera Digital Solutions Director

GRUPO CMC

grupocmc.es

tify him or her. The platform does a biometric match-

nature (inclination, acceleration, pressure, etc). In fact,

ing of everything to generate proofs that everything is

our system complies with the Spanish SEPBLAC regula-

correct. This can also be done without a service agent,

tion (Autoridad Supervisora en materia de prevención

just sending the video, which is processed with special

del blanqueo de capitales y de la financiación del ter-

software to get proofs of life (you blink, move, and so

rorismo) as well as with the European eiDAS regulation

on). If the recording doesn’t get the sufficient scoring,

(electronic IDentification, Authentication and trust Ser-

it is reviewed by a person, to verify it. But the advan-

vices).

tage is that the customer can do the identification at any point in time, when it is convenient, without regard to opening hours. »»

Biometric signature. If the customer is there in

person, we can capture the biometric features of the sig-

New legal requirement in the gambling sector In the past years, the gambling sector has literally exploded with tons of new models and outlets. And this has generated a certain problem because, once in a while, minors are caught gambling. Or people with addiction to gambling. Therefore, the authorities in charge of gambling have restricted and reinforced their rules not only for in-person gambling, but also for the online varieties. For example, there are professional gamblers that have several accounts with different identities, so they can play simultaneously at different places. And this is not legal. So our platform avoids this, by insuring a unique identification of every individual.

Taking our experience of having done the digital onboarding of the banking sector a couple of years ago, we are applying what we learned to this new challenge. Official statistics indicate that the 6,4% of minors in Spain (between the ages of 10 and 18) are gambling real money online.

But due to the enormous amount of online users (840,000 online gamblers each month), the only way to ensure a proper identification of those willing to gamble, is via a biometric identification.

Since March 30th 2019, new legal requirements have been enforced by the DGOJ (Spanish Gambling Control Organism) and this is where the capabilities of CMC’s O2.Digital platform enter the picture. Thanks to its VideO2ID solution, and an OCR capture of the MRZ identification lines of the Official Spanish Identification Document (DNI or NIE), the system can clearly identify the picture, hologram, etc. of the document to generate a clear and valid identification. Thus, no minor will be able to access gambling platforms in the future, nor those with gambling problems that are on special “no-gambling” lists.

MAY 2019

// 45

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

Marina Specht Regional Director MRM//McCann Europe

Marina Specht is a digital practitioner of 20 years and has been working in digital marketing and digital transformation during all of this time. She comes from the marketing side of transformation and has a deep consumer understanding, as well as a very good knowledge about data, technology and customer experience. She built her own business many years ago and sold it to Interpublic (IPG), the holding company that owns McCann Worldgroup. Since then, she has had many different regional and global roles within

ple that I have in my organization that I can leverage?

For companies that do this, there are many interesting things happening in the employee space. So I think that if companies fail, a lot of times it’s because of a lack of focus on people first”. / O R G A N I Z AT I O N A L C O M P L E X I T Y I S A PROBLEM The complexity of today’s organizations and the variety of tasks they have to accomplish is enourmous. And then there is the relationship between these tasks, which even complicates things further, as well as the constant change of processes and systems in modern companies.

But that kind of scenario isn’t everything, as Ms. Specht points out: “Sometimes leaders don’t get what the problem at hand is, and therefore they underestimate the complexity of this ’organizational entanglement’ as we call it. Things are often way too complex, because companies lack simplification. The important thing is to set specific objectives. If you embark in three year long pro-

MRM//McCann and IPG.

jects, by the time you have finished them, the technology has become outdated.”

46 //

/ FA I L I N G D I G I TA L T R A N S F O R M AT I O N S

/ T H E PAT H T O T R A N S F O R M AT I O N A L

The fact of the matter, after talking to many CEOs of

SUCCESS

different sized companies, is that a lot of the Digital

Anyway, among all companies that are applying a Digital

Transformation projects currently underway are fai-

Transformation to their corporation there surely have to

ling. And some even big time. But Marina Specht has

be companies that are doing the right things. This means

her own take on that: “Let me go into why so many

there has to be a set of actions the rest can apply or pit-

Transformations are failing. I think there are a number

falls they can avoid. “Yes”, says Marina Specht, “the first

of reasons, but in my opinion the main one is that often

thing is that when they talk about transformation, they

companies believe that digital transformation is about

don’t talk about technology. Technology is a means to

technology. And that the key thing is to make the right

and end. But what they have is a clear vision of what their

technology decisions. What happens is that companies

customers expect from them. And that is the real starting

get a little bit blinded, I would say, by the gee-whiz of

point for everyone in my opinion. Today, customers expect

Cognitive Computing, AI, Robotics, RPA, and so on. The-

that every experience is like an Amazon or an Uber expe-

re is such an overwhelming amount of new technology

rience. And the same is applicable to B2B, not only B2C. So

out there, that is very easy to fall in love with it”.

they always expect companies to behave as ’Best in Class’”.

“And the main issue here, in the companies that are suc-

Specht continues: “Let me give you an example: Wal-

ceeding, is that they are doing exactly the opposite. They

mart approached RIGA (part of IPG) and asked them to

don’t start with the technology. They start with the peo-

make their commerce as powerful as Amazon’s. We, at

ple. And when I mean people, I am saying ’customers’ or

IPG, believe that every transformation starts with the ri-

’consumers’. First of all, it’s important to try and gain a

ght question. If you’re not able to ask the right question,

deeper understanding of what is frustrating or wrong or

you will never find the right answer. And Walmart’s right

a pain point in the customer experience. And then, se-

question was ’How can we compete with Amazon?’, not

condly, it’s crucial to focus on their own internal people.

’How can we BE Amazon?’. Summarizing everything a

What are the changes that I as a company am going to

lot, what RIGA did was to analyze the customer journey,

have to make to empower people to actually succeed in

locate the pain-points and start about 30 Transformation

this proposed digital transformation? What are the peo-

Projects to address the issues”.

MAY 2019

#DES2019

“

If Digital Transformations fail, it’s because companies focus on technology first, not people / T H E R O L E O F M A R K E T I N G I N D I G I TA L / 5 D I M E N S I O N S T O A C C E L E R AT E Y O U R

T R A N S F O R M AT I O N S

D I G I TA L T R A N S F O R M AT I O N

Usually, the first thought, when someone talks about

After analyzing a couple of companies, for sure there

Digital Transformation, goes to the people in IT and

must be a, let’s say, “recurring theme” to them. Or, to

in management. But a successful transformation can

say it another way, some topics or problems common

only happen if everybody is onboard, especially the

to them, even if they are from disparate sectors. Isn’t

marketing people. Marina Specht, coming from the

that so? Marina Specht concurs: “After analyzing Wal-

Marketing side herself, has a similar opinion: “I think

mart, Nike, BASF, and others, I arrived to the conclusion

the Marketing people are key. As we all know, the #1 ob-

that there are like 5 dimensions to accelerate your Digi-

jective of the CEOs around the world is growth. But in

tal Transformation (which I will discuss at my Keynote

order to allow for growth, you have to transform the

at DES). These 5 dimensions are:

experiences, the products and the services. And the peo-

»»

Digital Leadership, culture and talent.

ple that bring the deep consumer understanding to the

»»

Customer and employee experience.

table (that we’ve mentioned before) are, in a great de-

»»

Operations/Process automation and optimization.

gree, marketing people. So CEOs are now making CMOs

»»

Technology, Data and Innovation.

co-responsible for the transformation programs. And,

»»

New Business Models and Connected Ecosystems.

as a result, these CMOs are shifting their focus a little

This first point, by the way, is hugely important. One of

away from ‘brand’ and more to ‘customer experience’.

the reasons why Digital Transformations are sometimes

That’s what is happening right now”.

unclear or lack some kind of specific definition is that

She continues: “In fact, over one third of the invest-

companies don’t make clear statements of what the new

ments in technology, are driven by CMOs, when it used

Business Model they want is going to be. Nike, for exam-

to be only CIOs. Technology, by the way, is becoming the

ple, is really clear about becoming a B2C Company. They

biggest expense or investment in a CMO’s budget. And

still are going to sell shoes in stores, but they are trans-

this is an interesting challenge for some CMOs, that

forming. For example, they have been able to cut their

come from a more traditional approach to marketing,

media spent in a big way, because they have created this

because they now have to drive these kind of transfor-

ecosystem of direct connections to people”.

mations”.

MAY 2019

// 47

#DES2019

DIGITAL DNA FOR AUGMENTED ORGANIZATIONS

So, as in all changes, the more traditional side of a com-

we get accustomed very easily to it, and expect the

pany role is getting sidetracked by these new evolutions

same from the rest of brands. Where do you think

of their workplace and demands. And this could be one

this leads in the near and medium term? “I think that

explanation of why so many Digital Transformations

consumers are a bit overwhelmed and a bit exhausted

are failing, due to the inability of the company, or its key

by the aggressiveness at which brands and technolo-

people, to adapt to the new demands. The thing is, is this

gies come at them 24/7. I would like to talk about three

an endemic problem or just a short-term circumstance?

trends that I see happening”:

Ms. Specht has an answer for that: “Of course, some of

»»

those people are having a hard time to jump on the band-

beginning to see a serious backlash from consumers

wagon, to reinvent themselves. So it is fair to say that it

that are saying ‘We don’t want to be shouted at. By any

is a very big challenge. But the CMOs are certainly trying

brand. You have enough data now, to whisper to us, not

and they will continue to play a big role in all of this”.

shout.’ So this 24/7 on the screen is having an impact

The first one is what we call ‘digital dieting’. We are

on our lives, and we are seeing that people are wanting

“

/ C H A N G E S I N C O N S U M E R B E H AV I O U R

less. A kind of ‘digital detox’. And that has consequences

The way we consume goods and services nowadays

for brands, which have to be quieter.

has nothing to do with what we did just a decade ago.

»»

The way we shop, or travel or interact with consumer

GDPR, we think it was a good thing. Many of our clients

goods is completely different now. And when someone

lost a substantial part of their customer data, but on

invents a new, more comfortable way of doing things,

the other hand, they cleaned their data up. What users

Another one is ‘data minimalism’. One year into

want, is that companies come back with a relevant ex-

If you’re not able to ask the right question, you are never going to find the right answer for your Digital Transformation Process

perience. Nobody is willing to answer a list of 25 questions anymore. So companies have to be more precise. »»

Finally, the third trend for me is that people’s expec-

tations are now to receive meaningful personalization.

All of this is because consumers think that if they can have this experience at Amazon or other places, this is the new normal. And the rest simply have to catch up.

Are traditional companies transforming better than start-ups?

It actually looks counterintuitive, but it is true. There are traditional brick-and-mortar companies that are faring way better than their recently founded start-up counterparts. What’s their secret? According to Marina Specht, “the way they do it, is by not trying to copy the tech-startups, but by partnering with them, and ultimately absorbing them. The traditional companies, like i.e. L’Oreal, have a very, very deep consumer understanding.

And they have very deep business experience in their category. What they often don’t have is the customer experience of these start-ups, because it is groundbreaking and uses new technologies. And the start-ups are also faster than the traditional companies. But nevertheless, L’Oreal for example, has reduced their new product development from 5 years to 9 months. But one sine-qua-non is that the Leadership has to be committed to the change. They have to be aligned, to drive the change of culture in their company. And they have to create an environment that attracts new talent, which is one of the hardest parts for these traditional corporations”.

48 //

MAY 2019