Earlier this month, aim10x brought innovation to Amsterdam
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Innovation was the keyword of the day at o9’s executive aim10x event. On the 4th of June in Amsterdam, software company o9 Solutions ran its summit for procurement leaders and experts, many of whom are finding themselves at a crossroads as technology and supply chains evolve.
The aim of the event was to enable procurement leaders to discuss how to adapt at a time when supply chains are becoming more interconnected, and how to navigate changes in operating conditions. These vital conversations included forecasting, supplier collaboration, and inventory management – among many other timely topics.
o9’s APEX
The summit also aimed to highlight the importance of AI-native agentic systems and how companies must move past legacy operating models. During the opening keynote sessions, led by Chakri Gottemukkala, o9’s Co-Founder, CEO, and Chairman, APEX – o9’s AI operating model – was previewed. APEX uses what o9 calls ‘neuro-symbolic AI’ to solve issues with enterprise decision-making and change management challenges.
The o9 team then demonstrated the power of AI-driven capabilities, which Gottemukkala combined with real-life success stories from across many years of supply chain innovation. He dived into discussing case studies, the real technology behind APEX, and the pillars that make up what it stands for (Agile, Adaptive, Autonomous, Planning, and Execution).
AI that goes “well beyond the AI of language”
Later, the conversation shifted to why LLMs alone are no longer enough. Dr. Ashwin Rao, Executive Vice President, Next-Gen AI and Technology at o9 Solutions, explained why neuro-symbolic AI is essential because it goes the extra mile. “Language is not complete cognition,” he said. “LLMs are powerful, but we need AI that goes well beyond the AI of language. That’s the AI of mathematics, structure, and domain knowledge.”
Further explanations of neuro-symbolic AI and demonstrations followed. Alongside this, three retailers each told their stories of how they moved past disconnected operating models. JD Sports, Canyon Bicycles, and Adidas all dug into their stories and how they approached sustainable planning transformations. Read all the details of their stories here.
Inspiring transformations
aim10x also highlighted four transformation lessons across the event. These came from Marelli, RHI Magnesita, Garrett Motion, and Teleflex, all of whom outlined their own transformation stories. During these transformations, all four business arrived at similar conclusions: that integrated planning is a cultural shift before it’s a technical one, and that the organisations which thrive ensure they have the internal capability to keep improving. Read the lessons learned from their transformations here.
Throughout the talks, breakout sessions, demonstrations, and networking, three themes ran through everything at aim10x:
That integrated visibility is a company initiative, not a function.
That data quality is an ongoing discipline.
And that the implementation is not the transformation.
With everything that happened during this fascinating event, what’s interesting is that aim10x Europe was only the preview. When o9 hosts its Americas event on the 23rd of September, its vision will truly take shape. Register to join in the conversation here.
We chatted with Emilie Genin about why having women leaders across procurement is so important
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The atmosphere was electric at this year’s Ivalua NOW event. Deep technical conversations, connections, and a human-centric focus shaped the event. Part of this discussion about humanity revolves around ensuring everybody has a voice. And as the number of women in procurement grows, this is more important than ever.
At the event, we sat down with Emilie Genin, Divisional Procurement Manager for Elkem. She began as a Chemical Process Engineer, leading an engineering department. While in that role, she quickly realised that many operational frustrations didn’t relate to the technical side, but were about procurement: what they needed to buy and how they prioritised. So, she thought she could use her technical background to improve buying habits and specifications by moving into procurement.
During Genin’s time with Elkem, her goal has been to standardise procurement. Thanks to Ivalua’s procurement platform, the business now has the tools it needs. “Processes were in place on paper, but Ivalua gave us the tools we needed to follow this up,” she explains. Now Elkem is in a position where it has the visibility it needs through a daily sanctioned screen check. The data is clear and robust.
Being part of the conversation
As a procurement leader herself, Genin is passionate about women in leadership. During Ivalua NOW 2026, she was part of a Women & Procurement – Women Leading Change in Procurement panel with Pauline François, Group Indirect Purchasing Manager at Trèves Group; Danielly Lima, CPO at RINA; and Arianna Vetrugno, Procurement Excellence Senior Manager at Bulgari Spa. Interestingly, all the women on the panel bar one came from non-procurement backgrounds, and Genin believes those backgrounds shaped how their careers evolved.
“I have a technical background and I think it shaped the way I lead today,” she explains. “I was used to running a plant safely and efficiently, so I always keep that in mind now. Also, when I do a procurement transformation project, I keep in mind what people really want and need. Elkem is a company that is spread across different countries, so there are different cultures to consider. It’s really important to understand how they work locally.”
Having this empathy for the way other people work informed the overall conversation Genin had with her peers during their Ivalua NOW panel. During the discussion, the group discussed the ways in which their varying backgrounds affected how they approach supply chain leadership now, and what specific impact being women has on their roles.
“We also talked about how being a woman leader is not about having soft skills, but about how we perform,” she explains. “There’s an experience that happened outside of work that really shaped me. I’m a triathlete and I took part in this women-only adventure with multi-sports challenges over several days. I was really amazed to see no negative competitiveness at all. All the ladies were there to push themselves, of course, but also lift up others. And when someone succeeded, the whole group was uplifted.
“I really try to keep that in mind when I lead a project, especially when things are tough, complex, or uncomfortable. I feel like I’ve implemented a value of collective energy at Elkem. During a transformation project, when there are women involved, there’s a collective energy of caring and listening to each other. It makes a big difference.”
An identity shift
This support is extremely meaningful to Genin. Her previous boss was a particular inspiration to her as a supportive person who believed in her and her vision. She found this particularly vital as she has progressed through her career, since moving from engineering to procurement management required an identity shift.
“You really have to rebuild your education in that situation,” Genin explains. “In France, we love a diploma. Certification is important. I had to go back to university to get a certificate and say, ‘I am legitimate’.”
Genin draws inspiration from other women in similar or senior roles to her, and while she’s too humble to believe that she’s that person for others, she does work hard to make people feel comfortable and confident. “I especially try to take care of the younger ones when I see them in uncomfortable situations. I’m in a program in France that helps students who are a bit lost and need a sense of direction, and helping them is my way of sharing what I know. I’ve been through that, so now I get to guide someone else.”
Genin believes firmly in the impact of strong leadership across the supply chain. The “collective energy of caring” she mentioned earlier is a powerful thing, and proves that leadership isn’t a solo performance. “My personal vision is that when I succeed when I see others succeed,” she states. “I grow around that and I’m fed by all this success. But I don’t feel comfortable being in front. I prefer that others say ‘Emilie, help us to arrive there’.”
Issue 12 is jam-packed with profiles, insights, and event overviews
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This issue has plenty of everything, with three core profile stories, multiple event overviews, and tons of insights to keep you hooked. This month’s cover story is a conversation with Daniel Hernandez, Group Industrial and Supply Chain Director of the French luxury brand S.T. Dupont.
S.T. Dupont is world famous for its beautiful lighters, pens, and leather goods. There’s an enormous sense of pride running through the company as – despite constant outside pressures – it continues to manufacture in France using traditional methods. Hernandez says: “It’s a key differentiator for our brand. Luxury is associated with quality; if you’re buying a luxury product, you’re expecting a high degree of quality, which includes the service. The way we produce and have kept the plant fully integrated here in France allows us to provide a much better service and after-sales service, but especially to control the whole process of production.”
We also dig into the challenges of polar supply chain management with Simon Lancaster, Head of Supply Chain Logistics at British Antarctic Survey. It’s a difficult area to drive transformation in, but Lancaster has been doing that successfully via technology and people management.
“From now, it’s about driving improvement – hence the current focus on quality,” says Lancaster. “Once we get everything settled, repeatable, reliable, and capable, we can start looking at driving efficiencies, utilising data from the system, and really benefitting from standardisation.”
Plus, we have a fascinating discussion with Ruyman Gallardo Armas about his career in the aviation industry, and how it’s evolved. Aviation has historically been fairly slow-moving, and within the current landscape, that has only worsened. However, it’s also an industry with huge potential – especially when a strong supply chain is involved. “Aviation doesn’t reward theory – it rewards execution,” Gallardo explains. “It’s about the ability to break down complex problems, prioritise actions, and deliver measurable outcomes. That’s critical, particularly in high-pressure moments like supply disruptions.”
Alongside these expert conversations, we have insights from CloudPaths and 4Flow, an overview of March’s Exiger Executive Forum, and key lessons learned from ethica26. We also have more leadership expertise from Koray Köse of KOSE Advisory, and three round-up articles from our engaging visit to Ivalua NOW earlier in the year. And finally, as always, we close with a look ahead at our picks for upcoming supply chain events.
Exiger returns to the Great Scotland Yard Hotel for a new Executive Forum
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AI-native supply chain management platform, Exiger, is returning to the Great Scotland Yard Hotel for an exclusive executive forum. On the 15th of July at 6:30pm, Exiger will host a discussion entitled ‘Human rights in the supply chain: From obligation to operational discipline’. Leaders and experts from across supply chain will gather together at the event to dig deep into this topic – because human rights risk goes far beyond being a reputational issue.
SCS/CPOstrategy readers can click here to request a place at the Exiger Executive Forum
Supply chains are under intense scrutiny, and businesses are being held accountable for every single part of that chain. The aim of Exiger’s Executive Forum is to examine this topic, and how the topic of human rights due diligence must now be a continuous oversight. The conversation will revolve around how to embed human rights intelligence into everyday supply chain decisions.
The speakers for this event are:
Tim Fowler
Host & moderator, Client Executive, Exiger
Koray Köse
CEO and Chief Analyst, Köse Advisory & Senior Fellow, GlobSEC Geotech Centre & Board Member, Slave-Free Alliance
Tim Nelson
Co-Chair & CEO, Hope for Justice & Slave-Free Alliance
Erika Peters
Head of Customer Success & Strategic Accounts, Exiger
During the evening’s discussions, the panel will also explore insights on:
The need to evolve beyond static human rights policies
The structural realities of forced labour risk
The limitations of traditional compliance models
Moving from reactive remediation to proactive risk governance
Click here to request a space and join other supply chain professionals at the Exiger Executive Forum
Simon Pamplin, CTO of Certes, warns of the risks of supplier breach and how that can affect you
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Many organisations still assume that once their data is handed over to a cloud provider or managed service partner, the risk goes with it. That assumption is not only wrong, it’s also dangerous. Outsourcing IT services does not mean outsourcing accountability. When sensitive information leaves your environment without strong protection, you are effectively placing your reputation, regulatory standing and customer trust in someone else’s hands. When those controls fail, as they often do, it is the data owner who ultimately pays the price.
Regulators have become increasingly clear on this point. Responsibility for protecting data sits squarely with the organisation that owns it, not the supplier processing or moving it on their behalf. Contracts, assurances and compliance statements offer little comfort once data has been exposed.
As a result, supply chain security is no longer an operational detail to be left to technical teams. It is a board level issue that affects risk, compliance, reputation and long term resilience. Senior leaders are now expected to understand where their data travels, who has access to it and how it is protected at every step.
The reality is uncomfortable but unavoidable. Risk cannot be outsourced. Services, platforms and operations can be delegated, but accountability remains firmly with the data owner. The only way to break the link between supplier failure and organisational damage is to ensure that data stays protected wherever it goes.
Why third-party breaches hurt so much
Some of the most damaging recent breaches did not begin inside the organisations that ultimately suffered the consequences. Attackers found their way in through suppliers, shared platforms or service providers that sat outside direct control. Once inside, they were able to access and extract data that belonged to someone else entirely.
Despite this, it was the data owner that faced regulatory investigation, fines, legal action and lasting reputational damage. Customers didn’t blame the supplier; they didn’t even know it existed. They blamed the organisation they trusted with their information. Boards and executives are then left explaining why sensitive data was allowed to travel unprotected through third-party environments.
The false comfort of perimeter security
A common thread in many of these incidents is over-reliance on perimeter based security. Organisations focus heavily on protecting their own networks and identities, while assuming partners will do the same. In reality, attackers rarely respect organisational boundaries. They move through supply chains, exploit weaker links and target data wherever it is most accessible.
Once data leaves your environment, perimeter controls lose their value. If the information itself is not protected, a breach at any point in the chain exposes it. This is why traditional security approaches struggle to contain the fallout from supplier compromises.
Harvest now, decrypt later is already happening
There is an additional risk that many organisations are massively underestimating. Attackers are not only stealing data for immediate use. They are also running harvest now, decrypt later campaigns. Sensitive information is being exfiltrated today, stored, and held until cryptographic advances make it readable.
This is significant because data shared across supply chains retains its importance and value over time. Financial records, personal data, intellectual property and regulated information do not expire quickly. When quantum computing capabilities mature, encryption methods that were once considered strong will no longer offer adequate protection. Data stolen years earlier can suddenly become exposed.
The assumption that quantum threats are a distant concern misses the point. The risk is not when quantum computing arrives. The risk is that the data that will be valuable then is already being collected now. Without quantum-ready, Post-Quantum Cryptography (PQC)-safe security protection in place today, organisations are building a future liability into their supply chains.
Organisations need to be looking at these PQC-safe solutions now that focus on ensuring data remains protected even against future cryptographic breakthroughs. When applied to data in motion, it ensures that information remains unreadable wherever it travels, across internal systems, cloud platforms and third-party environments.
Securing data across the supply chain
The most effective way to reduce supplier risk is to protect the data itself, rather than relying on each partner’s infrastructure. Encryption in transit, strong control of encryption keys and clear policies governing how data flows between systems are critical.
When data is protected end-to-end, a supplier breach does not automatically become a business crisis. Even if attackers gain access to systems, the information they intercept is unusable. This removes much of the incentive for the attack and dramatically reduces the impact if one occurs.
Crucially, this approach works with existing systems. Many organisations rely on legacy platforms that are difficult or costly to replace. Protecting data flows around those systems allows them to remain in use while still meeting modern security and regulatory expectations.
Another benefit of data-centric protection is reduced dependence on supplier assurances. Rather than relying on the assumption that every partner has implemented perfect security, organisations can enforce their own protection standards at the data level. This shifts control back to the data owner and reduces exposure to weaknesses outside their direct oversight.
It also simplifies compliance. When organisations can demonstrate that sensitive data is consistently protected wherever it moves, regulatory conversations become far more straightforward.
Protecting what actually matters
The lesson from repeated third-party breaches is clear. Attackers go where the data is, not where the organisational chart says responsibility should lie. Organisations that focus solely on infrastructure security will continue to be caught out by supplier failures.
Those who take a data focused, quantum-secure approach can change the outcome. Breaches may still occur, but their impact need not define the organisation. When stolen data is unreadable, reputation, trust and regulatory standing are far easier to protect.
The message is simple. You may rely on suppliers, but your data is still your responsibility. Protect it accordingly.
Alex Saric, Ivalua’s CMO, tells us how supply chain is shifting and where AI is succeeding – as well as where it’s lagging
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Last month, we attended Ivalua NOW 2026, joining 1,500+ supply chain professionals in Paris to get an up-to-date view of the landscape. As part of this vibrant event we sat down with Alex Saric, Chief Marketing Officer of Ivalua, to dig into some of the ways the industry has shifted and evolved in recent years – and the role AI has to play.
In an article that Saric wrote for our sister brand, CPOstrategy, back in 2019, he said that organisations were under more pressure than ever to innovate at speed. Seven years on, the world has drastically changed. Between COVID-19 and the lightning-fast acceleration of AI, supply chain has evolved to an unprecedented degree. So the question is: what does innovating at speed look like in 2026 compared to 2019?
“Back then, we were still driving traditional source-to-pay digitalisation and providing the transparency that’s still needed in this more uncertain, volatile world,” says Saric. “That volatility only increases every year. I think most people, probably me included, assumed that it would calm down. But I’d say, in 2026, the impetus is on making AI – and particularly agentic AI – the kind of tool you want it to be. From something that answers a question for you to something that really executes and drives more output from procurement. It’s really about taking it from pilot to production at a rapid pace, where it’s actually driving business impact.”
Changing variables
Back in 2019, nobody could have predicted the acceleration of AI in the supply chain – not even Saric. “What’s interesting is that even if you go back five or 10 years, people were talking about the commoditisation of procurement technology, which has become relatively easy to use. The capabilities are getting smaller. If anything, that has now accelerated with AI and the disparities between one organisation and another are even higher. But no, I couldn’t have predicted this level of acceleration.”
Things have evolved even since 2025. At last year’s Ivalua NOW, Saric said that “the increasingly uncertain sourcing and procurement landscape is forcing the industry to assess the impact on organisations, reassess supply strategies, and it’s all happening so fast”. When asked if that is different now, the answer is a firm “no” – but the variables do keep changing.
“It’s almost as if you’re viewing the entire supply strategy as a game. For a while, there are clear optimisation strategies to sourcing that everyone is focused on and implementing,” says Saric. “But then, suddenly, all the rules change. It’s one thing if they change just once and you adapt, set different parameters, and optimise again. But the problem now is that they change overnight, and you have no idea when. That’s a massively complicated environment for procurement. Their job has become exponentially more difficult.”
AI isn’t transformational (yet)
It’s a topic both Saric and Franck Lheureux, Ivalua’s CEO, touched on during the introduction to Ivalua NOW 2026: that things have never been more difficult for supply chain professionals. Even with the wider (and more confident) use of AI across the industry, the pace of change and the geopolitical risks and pressures weigh heavier than ever. In fact, according to Saric, AI’s impact has hardly been transformational – yet.
“The nature of enterprise technology is that it’s always a bit slower to get adopted and rolled out,” he explains. “There’s extra scrutiny, there’s change management; all these factors that have to be considered compared to consumer technology. The biggest changes last year were theoretical for the most part. There were very few organisations actually using AI in a way that’s driving value. A sizable minority of our customers are using it actively in production and they’re driving value from it. The step which still needs to come is moving from having it as a handy assistant or a way to get information faster, and actually driving a difference in how people work.”
This isn’t going to happen overnight. However, Saric expects to have customers onstage at Ivalua NOW 2027 who have completely changed their way of working via AI, and that most businesses will be using it to some extent. It is certainly creating efficiencies and values, even if it’s a slow process. For example, the application of AI for user experience is proving to be one area where it’s coming into its own.
“It’s really enabled procurement to become a much more conversational experience,” Saric explains. “Broadly, that’s the biggest impact so far. But besides that, it’s also helping make better decisions to identify contracts that have certain clauses to drive standardisation and conduct assessments with suppliers. If there’s a performance issue or you want to suggest improvement plans, AI can also help with drafting RFPs.
“There’s a whole range of pretty distinct skills that are saving a lot of time. In many cases, it’s bringing information and insights to the fingertips of the procurement users, rather than them wasting hours looking for that information.”
The procurement-IT alliance
More than technological advances like AI, strong inter-communication between procurement and the broader business is a key to success in modern organisations. Saric hosted a conversation during Ivalua NOW based around the collaboration between procurement and IT, and how to approach this partnership effectively. During this, he delved into his 25 years in the industry to guide the conversation.
“What I’ve consistently seen is that the most successful procurement digitalisation projects typically had strong collaboration with IT,” says Saric. “With AI, it’s even more important. You really have to understand AI and ensure you’re not exposing your organisation to potential security risks, or violating other policies. There’s a lot of technical detail that needs to be understood.”
He continues: “IT is the department that’s best positioned to help guide procurement through that process. The second thing is that there needs to be proactive engagement upfront with executive sponsorship from both procurement and IT. You can’t simply slap an AI tool on top of a broken foundation and think that it will be able to find and decipher all the issues in your data. Having the right foundation is critical, and that’s another reason why IT is an important partner for procurement.”
Ivalua announced the winners of its annual global customer and partner awards at Ivalua NOW in Paris.
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Ivalua’s customer awards recognise organisations that demonstrate exceptional impact, innovation, and tangible business outcomes. This year’s winners featured exceptional use of AI in procurement, rapid deployment, and effective supplier data management.
2026 Customer Award winners:
Technology Innovation and Excellence Award: Hutchinson
Procurement Trailblazer – Making a Difference: Körber
Procurement Community Team Spirit: TÜV SÜD
Best New Deployment: IPC International
IPC International commented: “This recognition celebrates the success of our Source-to-Contract deployment, which wouldn’t have been possible without exceptional collaboration”. “It shows how teamwork, strong partnerships, and a phased and structured approach to roll-out, can deliver digital transformation at pace,” noted Jenny Eisen, IPC International Project Lead.
Franck Lheureux, CEO at Ivalua, added: “Our customers’ achievements show the power of effectively combining people, technology, and processes. We are proud to support leading organisations worldwide and help them accelerate their ambitious transformation goals. Congratulations to this year’s award winners; we are honoured to be part of your journey.”
The partner awards recognize contributions to the success of Ivalua and its customers over the past year, based on joint business initiatives and the growth of certified consultants.
Partner Awards winners:
Global Partner of the Year: Deloitte
EMEA Partner of the Year: Capgemini
AMER Partner of the Year: Deloitte
APAC Partner of the Year: KPMG
Ivalua also recognized eight Value Award winners: KPMG (Northern Europe), PwC (Southern Europe/Middle East), Axys (France/Belux), Accenture (Procurement Transformation), Optis (Collaboration). Sourcing Champions (Channel Sales), Modali Consulting (Project Excellence), and Deloitte India (Ivalua Practice Development).
“From enabling organisations to fully harness our technology to helping us drive innovation, our partners play a vital role in Ivalua’s growth. The continued expansion of our partner ecosystem and community of certified Ivalua experts demonstrates the strong momentum we’re achieving together,” added Gabriel Giret, VP Global Alliances & Academy at Ivalua. “Congratulations to this year’s winners and thanks to all our partners for their ongoing, outstanding support.”
Ivalua significantly expanded its partner ecosystem in the past year as Ivalua continued to gain market share and partner interest. Certified implementation consultants grew by 27% worldwide to over 3,100. Similarly, technology partners grew by 39% as Ivalua rapidly expanded its ecosystem. Ivalua is the Source-to-Pay platform of choice for many technology partners due to Ivalua’s comprehensive, extensible data model and intelligent workflows. Partner data can be fully captured in Ivalua’s platform and used to guide intelligent workflows, automatically driving customer spending based on company policies and changing market conditions.
SupplyChain Strategy attended Ivalua NOW 2026 to gather insights on the future of procurement
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Supply chain and procurement are in a state of flux. While leaders across all industries are focusing on many of the same exciting topics – AI, ESG, automation, etc. – the world around us is experiencing uncertainty. But that type of chaos often births innovation. Ivalua NOW is shaped around embracing that innovation.
Ivalua’s global event, which took place in Paris on the 11th and 12th of March, brought together over 1,500 procurement and supply chain professionals at the Carrousel du Louvre. The stunning venue attracted leaders and experts, all of whom were determined to face geopolitical chaos and the race to adopt new technologies. Importantly, that includes ensuring the human side of business remains in focus.
It’s always been the case that supply chain leaders need to adapt in order to thrive, but the key now is also being armed with the right knowledge and tools, which are only becoming more complex. Generative AI is transforming the way we work, but the focus at Ivalua NOW 2026 was on how to apply AI effectively. GenAI is no longer a buzz word: it has real-world practical applications across the supply chain. And that’s what this event – and the whole concept of shaping new horizons – is about.
The technology is real
After the first day of customer and partner meetings, talks, and workshops, the main event kicked off on the following day with an AI video of Alex Saric, Ivalua’s CMO, flying from New York to Paris in his car. Why? “Obviously we had a little fun with technology for our opening video today, but there is a point,” Saric said in his opening speech.
“Our world is rapidly changing how we live, how we work. Technology is having a huge shift. Now the video may seem futuristic – even a little bit outlandish – but actually, all the technology in it is real and available today.”
However, Saric said, while huge change is happening around us, “what is important is maintaining the right balance in our personal and professional lives. We need to embrace the new because it’s exciting; it lets us do much more. And let’s be honest – not embracing it doesn’t mean you’re standing still. It means you’re falling behind as everyone else does embrace it.”
What humans do best
That’s not to say that everything is changing. “We need to preserve the old ways of working as well, especially when it comes to people and relationships,” Saric added. “That’s really critical. Agentic AI is already starting to fundamentally transform how we work, allowing us to make faster, more informed decisions, and freeing us from a lot of the dull and mundane tasks that still consume a huge amount of our day. By doing so, it’s going to allow us to focus on what humans do best: relationships, people, strategy. Now that’s the real promise of the human-agent operating model, which is coming.”
Saric doubled down on the fact that businesses have a choice: they can resist, and watch the future be shaped for them without their input. Or they can be proactive, and start using modern tools the way they want that fits best for their organisation. He added that the aim of Ivalua NOW 2026 was to inspire attendees by showing new innovations, showcasing customers who are succeeding on their journeys, and enabling networking opportunities.
Reshaping the supply chain world
“Your job has never been harder,” said Franck Lheureux, Ivalua’s CEO, said during his keynote address. “But there is hope. You wouldn’t be here otherwise.”
Lheureux posed the questions every supply chain professional in the room is asking themselves: what talent do I need to thrive in today’s agentic world? How do I deal with cyber threats? When and how do I adopt AI for the best? How do I continue to prioritise climate change? How do I fight inflation, costs, and other impediments?
“Your impact has never been greater. You’re a force for good” – Franck Lheureux, CEO
“This is your world,” Lheureux added. “You’re reshaping your job, inventing a better future. Preparing this, a quote by Mahatma Ghandi came to my mind: ‘be the change you wish to see in the world’. You have the power to be the change, as long as you start, as long as you set yourself in motion, and set yourself in a positive direction.
“Your impact has never been greater. You’re a force for good. Every dollar you spend, you have a decisive opportunity to make it a relevant spend. Doing good for people, doing good for suppliers, doing good for your employees, society, and the planet. That’s your superpower. You have the opportunity, you have the technology, you have the appetite. More importantly, you have a mandate to make it happen.”
Acting and reacting
Lheureux inspiring words set the tone for the rest of the day. David Khuat-Duy, Founder and Chief AI Officer at Ivalua, followed with an overview of the agentic AI revolution, and what it means to both Ivalua and supply chain at large. Then, there was an educational talk through Ivalua’s innovations and trends from Pascal Bensoussan, Chief Product Officer.
Deep discussions of cutting-edge ideas and innovations continued through the day. Supply chain leaders from all walks of life presented on digital transformation, how women are driving change within procurement, why the CPO-CIO alliance is so vital, supplier dynamics, sustainability, and of course, many discussions about AI – the benefits, the risks, and beyond.
The type of guidance this event offers is invaluable. Despite the rapid pace of change, and the endless discussions about how best to move forward, forging a clear path is still a challenge. At 2025’s Ivalua NOW event, Lheureux stated that it’s hard to think about and project the future if you’re constantly forced to react on a day-to-day basis. Later in the day at this year’s event, I asked Lheureux what has changed – if anything.
“I sense that our customers have a paradoxical situation to fight the day-to-day constraints they face,” he explained. “What are the levels of a given company to cope with external shock, and still build a strategy for a long-term future? It’s supply chain resilience, and diversifying your supplier portfolio to reduce the dependency on one region.”
Ultimately, the key to moving forward proactively instead of reactively is being unlocked with technology. Lheureux added: “You need the technology to deploy best practice and policies, to shape the world, to shape the future with different results. And AI will still have something to do about it.”
Manifest Vegas 2026 took place in February, and as part of SupplyChain Strategy’s official partnership with the event, we joined in the festivities to bring back exclusive insights for our readers.
The event showcased new technologies, strategies, and other innovations for application across the supply chain. Manifest buzzed with conversations and ideas, the energy high as supply chain professionals shared their knowledge and wisdom. Looking ahead back in 2025, Tanzil Uddin, SVP of Content and Partnerships at Manifest told us, “2026 will be pushing things up a notch.”
He added: “Manifest is really a full ecosystem event, dedicated to the end-to-end supply chain. We bring together startups and investors, but also supply chain leadership like Chief Supply Chain Officers and Chief Procurement Officers from retail, manufacturing, automotive, life sciences, and more.”
Alongside our many conversations with leaders at Manifest, this issue features a conversation with Malcolm Dare, Executive Director, Commercial, at Sizewell C, about how the company is gearing up to meet 7% of the UK’s energy needs for the next 60 years. The under-construction nuclear power station is also creating education and work opportunities for the local area, which is a huge boon for Suffolk.
Dare says: “Building a sixth form college and handing it over to the education authority to run is one of the lasting legacies that we want to do. It also means that local people may choose to go through the sixth form route and then, after getting their qualifications, subsequently opt to work at Sizewell C when it’s an operating power plant. That is a generational activity that would have been left behind.”
As well as all of this, we have expert supply chain insights from Prabhat Rao Pinnaka, Eddy Massaad, and Paul Vezelis, as well as a CPOstrategy Podcast conversation with Venkatesh Srinivasan. Finally, we take a look ahead at our picks for upcoming supply chain events to keep an eye on.
Royanna Chappell and Rick Goe reveal a transformation that moves fulfilment operations towards adaptable, software-driven operations
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At Manifest 2026, conversations about supply chain transformation centre not just on automation itself, but on how organisations design operations to remain adaptable in uncertain markets. That theme comes sharply into focus during a joint discussion with Royanna Chappell, VP Business Development at Ocado Intelligent Automation, and Rick Goe, SVP Supply Chain at Distribution Management who detail an innovative and highly fruitful partnership.
From constraint to capability
Distribution Management, through its DM Fulfilment Services division, provides D2C and omnichannel fulfilment for brands and retailers. Built on a foundation of traditional distribution operations, the company increasingly supports fast-moving e-commerce clients whose product ranges and order profiles change constantly.
That shift, however, exposes the limits of conventional warehouse design.
“As we brought on third-party fulfilment into our product mix, we had SKU proliferation,” says Goe, SVP Supply Chain at Distribution Management. “Those SKUs got further and further away from the conveyor belt, which required our employees to walk, creating inefficiencies and productivity declines. It even had an impact on employee morale.”
Facility leases nearing expiration forced a strategic decision. Rather than retrofit ageing conveyor-heavy sites, the company chose to rethink its operating model entirely. “We had to decide who we wanted to be three years from that period all the way up to ten years,” Goe explains. “Did we want to invest in what we had, or be proactive and design for growth?”
For Chappell, VP Business Development at Ocado Intelligent Automation, flexibility is the defining advantage. “The reason I find AMRs so attractive is the adaptability,” she says. “Other technologies didn’t give operators this freedom. We took travel out of the equation and allowed people to be where work is, with work brought to them.”
Surgere CEO William Wappler explains how precise, verified data is becoming the foundation of automation, resilience, and enterprise-wide decision-making
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At this year’s Manifest conference in Las Vegas, the conversation around supply chain technology repeatedly returns to one foundational theme: data accuracy. For William Wappler, CEO of Surgere, that foundation is not simply an operational advantage. It is the essential prerequisite for modern supply chain performance.
Surgere specialises in capturing, verifying and operationalising highly accurate supply chain data, using a combination of IoT, engineering-led deployment, and AI-driven analytics. The company focuses on knowing precisely what assets exist, where they are located, and how they move across complex industrial environments. That data is then fed into enterprise systems to drive automation, planning and decision making.
Accurate data
The company’s central mission is straightforward. “We only do one thing: to make sure that within that transformation, everybody has highly accurate data that they’re working on to ensure that all of the tactics and strategies they’re working on actually work.”
For decades, Wappler argues, supply chains have operated on what he calls an “assumptive model”. Organisations believed they knew what was in a shipment, where inventory sat, or whether materials had arrived, but verification was often manual and reactive. “Supply chain practitioners have existed on heroics for a long time,” he explains from Surgere’s spot in the Expo Hall of the Venetian Hotel. “We think we know what’s on that truck. We think we know where it is in the warehouse.”
Surgere’s technology is designed to remove that uncertainty. By validating shipments, tracking assets in real time and providing precise location data, the company allows organisations to operate on verified information rather than guesswork.
The scale is significant. “Today we’re doing about 15 billion transactions a month,” Wappler says, noting that the primary audience for this data is no longer people but enterprise systems themselves.
Barry Conlon and Brian Smith discuss how their organisations have spent 18 months deepening an integrated approach to freight execution
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Supply chains can no longer treat freight security as a standalone function. It must be embedded across execution, technology and partnerships. To this end, Overhaul has built its reputation around supply chain risk management, combining real-time visibility, intelligence monitoring, incident response and cargo recovery services to help organisations protect high-value and sensitive freight. Overhaul’s platform aggregates operational and security data from multiple sources, applying analytics and monitoring to detect anomalies and manage risk across the shipment lifecycle, giving more control to shippers and LSPs.
Banyan Technology sits closer to freight execution; its technology connecting shippers, brokers and logistics providers through integrated transportation management and data exchange tools that support planning, execution and financial settlement. The company’s role is to streamline freight decision-making while improving connectivity across participants within the transport process.
The partnership between Overhaul and Banyan, 18 months old and counting, effectively links execution and protection into closer alignment. Banyan’s connectivity and workflow orchestration provide critical operational data, while Overhaul applies risk intelligence, real-time monitoring and coordinated intervention capabilities. For both companies, this partnership reflects a wider shift across the industry. Security is moving closer to freight execution and has become part of day-to-day operational decision-making.
Unprecedented levels of freight fraud
Cargo theft and freight fraud have long existed, but both highly-experienced executives describe a shift in intensity that is forcing the industry to rethink its defences. “I’ve just never seen such levels of, not just sophistication, but attempts, attacks against the supply chain,” says Conlon. “It’s at unprecedented levels.”
Criminals exploit trusted relationships, operational speed and fragmented processes. They target breakpoints in the physical and digital movement of freight, moments where verification is weakest or processes slow down. The economics make the problem even more challenging. Conlon describes cargo theft as “vastly profitable and very low risk”, a combination that is attracting more organised actors into the space.
Why upstream volatility is no longer abstract for design and procurement teams
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If you feel like you’re paying more for your electronic components, you’re not imagining it. Thanks to upstream pressures, rising prices for key commodities used across electronics and manufacturing are filtering down into everything from copper-heavy printed circuit boards (PCBs) to metal-backed passives. Here, Chris Withers, sales director at Zel Components, an alternative electronic parts supplier, explains how engineers can respond more quickly to market volatility.
On the London Metal Exchange (LME), copper reached record territory in early January 2026, pushing above $13,300 per tonne. That’s more than 20% higher than the late 2025 average as stock tightness and strong industrial demand combined.
That matters because copper isn’t just a metal you read about in commodity news. It’s used extensively in printed circuit boards, internal connectors and wiring, as well as across many power and signal paths in electronics. As a result, movements in copper pricing directly influence the cost of the boards and assemblies engineers design and build.
Precious metals are also impacting pricing dynamics. Gold recently surged above $5,000 per ounce, reaching a series of record highs in the first few weeks of 2026 amid market volatility and safe-haven demand. While gold isn’t in every bill of materials, it’s used in contact plating and specialist components where performance meets reliability.
Likewise, aluminium has traded firmly above $3,000 per tonne on global benchmarks and is forecast to remain well supported given current market dynamics. Even when commodity analysts suggest prices might ease later in the year, the near-term story is volatility, which introduces risk.
When inputs move
Engineers regularly buy copper foil, laminates and boards priced off copper’s movement. Over 2025 and into 2026, manufacturers of copper-clad laminate — the base material for almost all FR-4 boards — began issuing public price adjustments directly linked to rising raw materials.
Some supplier notices describe increases of up to 30% across all thicknesses of copper-clad laminate and prepreg, driven by higher copper prices, glass cloth costs and processing expenses.
This is the kind of upstream movement that doesn’t stay upstream. It filters through every layer of a PCB quotation, especially in multi-layer designs where copper and prepreg content is higher.
The wider passive component landscape tells a similar story. Industry analysis shows price increases across capacitors, inductors, ferrite beads and related passives. These range from single digit to double-digit percentages for early 2026 deliveries, often citing metals and process cost inflation among the drivers.
This doesn’t mean you should panic buy every part in your current bill of materials (BOM). However, it does mean that the old “wait-and-see” strategy is getting riskier, particularly if you’re dependent on a single branded source for key sections of your design.
Alternative sourcing
Second sourcing is moving back into focus, not as a cost-cutting exercise but as a form of risk management. Pin-for-pin alternatives, for instance, allow engineering teams to maintain electrical and mechanical compatibility while reducing dependence on individual manufacturers, whose pricing or lead times may be more exposed to raw material volatility.
This approach is particularly effective for widely used regulators, discretes, interface devices and passives, where functional equivalence is well understood and validation cycles are manageable. As volatility increases, having approved alternatives already mapped can significantly reduce disruption when prices shift or allocations appear.
When suppliers combine local stock with extended inventory and effective cross-reference tools, response times improve. During a time of uncertain input costs, that flexibility is as valuable as unit price, provided performance remains consistent.
Prices might ease at some point, but it’s difficult to predict when. Volatility isn’t going away, and when raw material costs feed into electronics pricing, it’s the teams that design and source with flexibility in mind that are better positioned to respond when conditions change.
Exiger’s Executive Forum returns in March, enabling procurement and supply chain leaders to deep-dive into the latest the sector has to offer
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On Wednesday the 4th of March, Exiger’s Executive Forum arrives at Great Scotland Yard in London. The title of this event is When geopolitics hits the P&L: Redesigning supply chains for structural conflict. Concerns around instability across the world are at an all-time high, and now is not the time for procurement and supply chain professionals to bury their heads in the sand. The Exiger Executive Forum is designed to lay the relevant issues out on the table, and remove fear in a way that’s still realistic.
This particular event examines how various forces – including sanctions, export controls, financial restrictions, and resource nationalism – affect the realities of procurement. Geopolitical instability isn’t an external risk anymore; it affects every part of the supply chain. As a result, procurement leaders are redesigning contracts, sourcing strategies, and decision governance in order to turn potential disruption around.
March’s Exiger Executive Forum will focus on:
How Geopolitics Translates into P&L Impact
Supplier Liquidity, Financial Exposure, and Payment Fragility
Source to Processing and Assembly Concentration, Choke Points, and Structural Dependency
The AI leader joins Hy-Tek to scale its IntraOne software platform
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Hy-Tek Intralogistics, a leading provider of warehouse and distribution technology, is excited to announce today the appointment of Jim Peters as Senior Director, Software Development. In this leadership role, Peters will oversee the engineering and product development strategy, focusing on scaling high-performance teams and advancing the architecture of the company’s software solutions.
Peters joins Hy-Tek with over 18 years of experience in senior leadership roles, bringing deep expertise in systems architecture, cloud computing, and machine learning. He has a proven track record of building and scaling engineering organisations, having successfully managed global teams across on-site and offshore locations in the US, Europe, Australia, and Hong Kong.
Most recently, Peters served as Senior Software Engineering Manager at Vanderlande, where he led engineering and product teams in North America and Europe to develop next-generation Warehouse Execution Systems (WES). During his tenure, he was instrumental in updating legacy systems to modern development practices and piloting an Agentic AI development program to assist with system review and refactoring.
Robert Kluck, Vice President of Software Development at Hy-Tek Intralogistics, said: “Jim’s extensive background in WES development and his forward-thinking approach to AI and machine learning make him an invaluable asset to our technology leadership team. His ability to transform organisations using Agile methodologies aligns perfectly with our mission to deliver cutting-edge software solutions to our customers.”
At Hy-Tek, Peters will leverage his proficiency in transforming organisations and his experience with AI platforms to enhance decision support and development velocity. His leadership will be pivotal in driving the continuous evolution of Hy-Tek’s software offerings, ensuring they remain at the forefront of the supply chain industry.
We talk to Kimberley Duarte, Strategic Programs and Operations at the Circular Supply Chain Network, about her experiences in supply chain
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It’s common for procurement professionals to just fall into supply chain. How did it happen for you?
I guess I fall into the same camp. I came into supply chain through engineering. I started as an electrochemical engineer, working on energy systems. My master’s is in hydrogen economy, fuel cells, batteries, things like that.
However, I’ve always been in operations. My co-op during my bachelor’s degree was in operations engineering in a chemical coating company. My dad was a plant manager, so I was always walking the floor and looking at machines and thinking they were really cool in a manufacturing sense.
I didn’t really understand much about it until my first role coming out of my master’s program. I was heavily involved with the supply chain team. I worked with quality and sourcing for scaling up production of a component that we had. I had this realisation where that bottleneck in innovation isn’t necessarily the technology itself. You can make the technology work with all of the engineers and the scientists working hard together, but it’s the systems and the relationships that move materials, products, and ideas from prototype to production. Technology can only succeed when the supply chains are ready to carry that into production and scale that. And I found that very interesting. That’s when I felt I was way more interested in the nuances of supply chain than engineering. I liked being a part of the system that made something successful.
Tell me a bit about the Circular Supply Chain Network and what it does.
The Circular Supply Chain Network was started a few years ago by Deborah Dull. She is a thought leader and world renowned speaker on circular supply chains. I really admire her. She’s written a couple of books and she works with the ASCM (Association for Supply Chain Management). She’s wonderful and brilliant, and her idea was to create a global community that’s dedicated to re-imagining supply chains as circular systems.
We bring together practitioners, innovators, leaders, and we share tools, frameworks, and stories for making circularity practical and actionable. We do that through education, peer exchange, thought leadership, speaking events, pilot projects, and so on. We work on grants when appropriate as well, and we’ll go to events and host workshops. We hold and share toolkits and training information, and we participate in accelerator type initiatives.
Can you tell me about the sessions you led at CHAINge North America earlier this year?
That was great. I really loved my time at CHAINge this year. I did a couple of things. On the first day, I worked with Deborah and she brought in some members of the Circular Supply Chain Network for us to co-facilitate her workshop. Her workshop was really fun. It was called Reboot, Repair, Reimagine the Circular Supply Chain. We were talking in this workshop about the companies that are actually implementing advanced circular supply chain solutions, to show that it’s not science fiction. They are truly who’s leading the way right now, and we discussed the steps you can take in your own company to benchmark against them or to lead yourself to these types of success. It was really fun being a part of that and working with Deborah side-by-side.
I also co-presented with Samer AlMadhoon, Managing Partner at Muhakat Institute. He had a sustainability talk and I had a circularity talk, and we worked together in our presentation. It was called Sustainability in Action: Bringing Circularity and Best Practices to Life in Your Supply Chain. I led the audience through what a circular supply chain is, and a roundtable the next day to follow up on that, and find out people’s struggles.
That brought up some really hard conversations and a lot of pain that I think supply chain professionals understand. Maybe they feel that sometimes they’re not listened to, or there’s still companies where the supply chain is supposed to manage costs and they don’t necessarily have a seat at the table.
How do sustainability and circularity differ, and how can we shine more of a spotlight on circularity?
That’s definitely challenging. If you look at sustainability, it’s the goal. It’s the big picture; it’s people, planet, profit, and circularity is a tool. Circularity is purely about material flows. It’s about how we keep the raw materials, the products, the energy that’s used in these processes in play for as long as possible. Circularity doesn’t cover water use, labour conditions, equity; it’s very focused on the materials themselves. However, circularity is also one way of getting to the sustainability boundaries, essentially. And that’s the interesting thing.
Circularity itself is huge for economic value because it is value retention, it’s material flow, and keeping those materials in play with as little effort and waste as possible. If we think of lean manufacturing and waste in that aspect of wanting as minimal waste as possible, that’s true in circularity as well. But then how do you take these waste streams and extract more value out of them? How do you protect the value of the materials and the products that you’re working with? How do you keep as much of the shell of your product going for as long as possible with minimal effort? Those are the aspects of circularity that I think need more attention and understanding.
Besides a lack of conversation around the topic, what are the biggest challenges in circularity?
I think part of it is there are very large companies that are implementing circular practices. A lot of the heavy duty equipment companies have figured out how to make their very large, very expensive machines have new life, so they have whole remanufacturing plants. And that’s great, but these large companies have something a small company doesn’t: a huge supply chain ecosystem.
Circularity isn’t really a single company solution – it takes that ecosystem. You need your suppliers, you need your customers, you need to be able to get back to your material. It needs policy makers. It needs communities working together, reverse logistics, and local infrastructure – our big missing links in circular supply chains. Without them, it doesn’t matter. The loop stays broken if you’re not able to get back your material and do something meaningful with it.
And the thing is, it’s also really hard for companies to understand the value in making those short loops, even though it’s less risky and more resilient to have share and reuse remanufacturing processes that are close and local, so you can keep those materials in circulation longer. That is a huge shift where companies are so much more used to obsolescence, like you want your product to fall apart so that somebody will come and buy a new one. So it is that business model of getting into the mindset of there actually being revenue to be had. Mindset is key.
Caroline Grey, Co-Founder and CRO, Treefera, explores how better visibility is fixing blind spots
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The world is getting noisier. Climate volatility, environmental degradation and political instability are increasing both the number and the severity of disturbances that ripple through supply chains. With each disturbance, new complexities arise from new variables, like soil health and rainfall shifts, regulatory changes and geopolitical friction. These variables compound into an opaque risk ecosystem.
The unfortunate reality is that traditional data collection methods, aimed at managing supply chains and reducing risks across the all-important first mile, now can’t keep up in this challenging environment. Manual data collection or static surveys can’t process this rising tide of complexity fast enough to inform decisions, meaning businesses don’t have access to critical information. The result? Without this primary data, businesses are “flying blind,” which means they don’t have control over their supply chain operational performance, thus impacting revenue.
Technology plays a crucial role in quietening the noise, restoring clarity and providing leaders with the insights needed to improve supply chain resilience. We’re already seeing that satellite imagery, drone information and ground truth data can all be elevated using AI agents, allowing businesses to make better decisions.
The first-mile challenge
Today, 60% of business costs and risks occur within the first mile of logistical supply chains, meaning poor management of risk in these sourcing regions can directly impact business success. At the same time, regulatory pressure and requirements are growing, with the impending EUDR and EU omnibus legislation. Businesses need to have access to the right processes and technology solutions to ensure compliance.
For the EUDR, this means that any business that operates within, or sells to, Europe will need to ensure no deforestation occurs within their supply chain. They will also need to backdate evidence from as far back 2020. While timelines for this regulation remain uncertain, acting now to prepare for compliance should be a business priority today.
Given the scale of first-mile risk, visibility is essential to build resilience. This can only be done by leaning into the right mix of technologies, including the smart use of AI to generate insights that allow for greater, better-informed decision-making. AI allows us to abstract complexity – leveraging the massive acceleration in the capabilities of satellites over the past 10 years and turning disparate and disconnected data into actionable insights at global scale and near-instant speed.
AI-nativity needs to be the first step
While the entire supply chain can be opaque, the first mile has historically been hardest to manage, with information about sourcing regions and commodity origins often fragmented, remote and expensive.Businesses need access to insightful data that uncovers what’s really happening on the ground.
Data governs the flow of capital, and the quality of this data can equip enterprises with the ability to scope out and invest in appropriate sourcing options.Satellites, drones and ground truth data help with this, but only to a point – they provide surface level information without the depth of insight necessary for action.
AI-enabled data systems make it possible to track first-mile activity in real time. These tools translate raw, real-world data into scalable insights that decision makers can act on. They can also be tailored to specific business needs – from monitoring particular geographies to aligning with the compliance frameworks that matter most.
How does this work in practice? Take a large brand sourcing cocoa in Madagascar, for example, which needs to assess the risks posed by deforestation in order to meet EUDR standards. By utilising AI and satellite technology, they can map their entire supply chain to assess deforestation, tenure and labour risks, while producing automated DDS (Due Diligence Statement) reports ready to be submitted to the EU.
Agentic AI is the enabler here, synthesising complex and vast real-world datasets into expert-grade insights that are accessible at speed and scale. AI agents build on traditional AI models through autonomy and comprehensive self-learning mechanisms. Ultimately, this technology supports businesses in understanding the risk landscape within the first mile. And when incorporated into models that include regulatory and compliance frameworks, businesses can manage accountability and maintain their governance commitments.
Building deep insights from historic blind spots
The factors that affect global supply chains show no sign of slowing down – it’s time for businesses to take a different approach to risk identification and management, especially within the first mile. By ensuring access to accurate, scalable data and utilising real-time monitoring, businesses are laying the foundation for unwavering supply chain resilience.
For the C-Suite, the stakes are clear: revenue security and enterprise value now hinge on visibility at the first mile. In a world of climate shocks, political instability and regulatory pressure, legible supply chain data is no longer a technical nice-to-have; it is the foundation for protecting continuity, defending margins and sustaining growth over the long term.
In this issue, we’re shining a spotlight on the rapidly-growing sportswear brand, On. Craig Jones, Chief Supply Chain Officer at On, has a long history of transformational excellence. We sat down with him to discuss the expertise he brought to On, and how the business has evolved.
On is a young company, founded in 2010, and has grown exponentially ever since. It has gained international attention and renown during the last 16 years, but swift growth can have unforeseen consequences. To make sure vital elements of the supply chain didn’t get overlooked with all the extra work and pressure upon it, Jones made sure to start by getting back to basics.
“After 30 years in the game, I would say I can walk around a warehouse and kind of smell where the problems and bottlenecks are,” Jones says. “A lot of it is just the basics of running a distribution centre with planning. If you think about planning, there are not many companies I know that have accurate forecasting, especially with the volatility of our environment today. So it’s important to be clear on who owns what and what needs to be done by whom. A lot of it is just about discipline without being over-the-top.”
Alongside the On profile, we have some expert insights about supply chain circularity from Kimberley Duarte, Strategic Programs and Operations at the Circular Supply Chain Network. Caroline Grey, Co-Founder and CRO at Treefera, also lends us her wisdom on the topic of building supply chain resilience through first-mile visibility. Plus, procurement and technology leader, Nedra Dickson, talks us through the value of small business.
Additionally, we’ve got fascinating round-ups from DPW Amsterdam and Exiger’s Executive Forum from the tail-end of 2025, and we’ll also be looking ahead to Manifest 2026 and other upcoming events.
Simon Bowes, CVP Manufacturing Industry Strategy EMEA at Blue Yonder, discusses AI’s role in resilience
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For some time, global supply chains have been under considerable pressure. Media coverage continues to reflect the uncertainties faced across industries as diverse as construction, chemicals, semiconductors and food, among many others. News reports point to both positive developments and persistent challenges, with stories about disruption, weak demand and slow recovery appearing alongside more encouraging signals.
On the ground, these issues are causing significant problems. Research reveals that 84% of executives have experienced supply chain disruptions, ranging from route changes and extreme weather to geopolitical unrest. These disruptions complicate planning, impacting everything from production capacity to transportation costs.
On the other hand, supply chains have also proved themselves to be incredibly resilient, with organisations everywhere adapting to unprecedented levels of disruption to keep the wheels of commerce in motion. Looking ahead, however, how can organisations strike a balance between maintaining operational continuity and adapting quickly to new risks and changing market conditions?
AI-powered digital transformation
Key to long-term success is an ongoing commitment to digital transformation, particularly the deeper integration of smart supply-chain platforms and AI-driven tools that strengthen visibility and support faster, more confident decision-making.
In this context, “smart” supply chain platforms are modern, cloud-based systems designed to connect data, processes and stakeholders across the end-to-end supply chain. They replace fragmented legacy tools and spreadsheets with a unified operating environment, integrating data from internal functions (planning, procurement, manufacturing, logistics, etc) and external partners (customers, suppliers, carriers, retailers). In doing so, they provide a single, consistent source of truth across the supply chain network.
AI can play a central role in generating insights that organisations use to radically improve planning and decision-making. By processing large data sets to detect patterns, anomalies or emerging risks more quickly than manual analysis, machine-learning models can anticipate fluctuations in demand and inventory positions, using that information to inform forward planning.
AI can also recommend actions, such as re-routing shipments or adjusting production plans, to minimise disruption while automation reduces reliance on manual decision-making and speeds up response times. Together, these capabilities help organisations adapt more quickly when conditions change, as they inevitably will.
Effective integration
Despite strong potential, integrating AI into incredibly complex supply chains is not without its challenges. For instance, many networks remain extremely fragmented, with data often trapped in multiple systems that don’t communicate well. This reduces the quality and completeness of information available to AI models, meaning organisations struggle to operationalise tools consistently across relevant functions. According to Blue Yonder’s research, 82% of leaders agree that outdated technology will hinder their supply chain’s potential, and 51% state that implementing new tech is a top strategic priority.
In the rush to deliver performance improvements, some organisations have implemented AI on a piecemeal basis, deploying point solutions that address only one area (such as warehouse optimisation or forecasting) without supporting broader end-to-end decisioning. The problem with this approach is that it can easily create new barriers by reinforcing data and process silos, making it harder to share insight across functions and limiting the ability to coordinate responses when conditions change.
So, what do AI-powered supply chain processes look like in practice? Imagine a manufacturer sourcing key components from multiple suppliers across different regions. Without prior warning, a disruption, such as a severe weather event that closes a port or a supplier’s production delay, occurs. Using traditional processes, teams would need to manually piece together information from procurement, logistics and production systems to understand the scale of the problem, a task that can take hours or even days.
Armed with the appropriate data platform and AI tools, because data from procurement, production, logistics and inventory is unified, the organisation receives an early alert. AI models quickly analyse the likely impact of the problem, such as which orders will be affected, expected delays, and how production capacity will be influenced, among other factors.
The platform then evaluates scenarios around options such as alternative suppliers, rerouting via different ports, adjusting production schedules or reallocating inventory across distribution centres. It then recommends the most effective option based on lead time, cost and service commitments.
Planners can review and approve the recommended response, supported by a clear rationale. After this point, execution steps are automatically triggered across procurement, transportation partners and warehouse operations. As conditions evolve, AI continues to monitor performance and adjust recommendations, ensuring customer commitments are met and cost impacts are minimised.
In many ways, the argument in favour of using AI to improve supply chain performance and resilience has already been won. Research has shown that 80% of industry leaders say AI is already changing how they operate. Delivering on the technology’s true potential requires a shift from experimentation to scaled deployment. That means unifying data, connecting processes and equipping teams to act on AI-driven insight with confidence.
The CRO of Kallikor discusses how supply chain professionals can become more proactive and less reactive
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Poor alignment of strategy to execution plans across supply chain operations coupled to a continuous mix of internal and external disruptions are leading to a culture of constant firefighting. Last-minute fixes and costly reactive changes to address even small bottlenecks are eroding margins and confidence at the top. And, for CEOs and CFOs, this short-term mindset in the operation leaves them incapable of making confident growth bets for the future.
Instead, decision-makers need a way to shift from firefighting to foresight, with access to a safe virtual environment that enables testing of long-term strategies, quantifying the impact of even the smallest changes and aligning decisions across finance, commercial, logistics and supply chain operations.
Starting anywhere
No more reactive, day-to-day problem solving to deal with demand changes or external factors. Instead,leaders can use composable simulation to target the real pressure points that constrain growth – whether that’s in-store operations, warehouse flows, transport strategy or outdated inventory policies. By tackling the bottlenecks that matter most, businesses gain the agility to act decisively.
With a joined-up model spanning areas of operation, changes in one domain which impact adjacent processes can be modelled together – avoiding greedy optimisation which favours one function, landing additional costs elsewhere in the business. Those might include warehouse design, store operations or network flow, with the power to move seamlessly between but balance the needs of different areas as needed. That flexibility gives executives the foresight to direct resources where they’ll unlock future growth, not just satisfy immediate local operational challenges.
From composability to adaptability
Composability is crucial for adaptability. With composable simulation, businesses can quickly adapt to changing requirements or conditions across the operation. New use cases or models can be added if needed, supporting targeted improvements on-the-fly, but critically balancing each of the elements of the end-to-end flow.
Firefighting mindsets have been exacerbated by rigid rules and policies, or guardrails, in supply chains, especially when they no longer fit today’s market dynamics. Composable simulation enables businesses to simulate different scenarios that challenge those guardrails.
The short and long-term impact of changing or removing certain policies or rules can be fully tested in a risk-free environment, enabling true foresight. It’s even possible to identify new effective ways of operating across the supply chain which may have been previously overlooked due to the established, siloed structures in place.
Accessibility that drives alignment
But even with the flexibility, impact and foresight offered by composable simulation, it only creates value if the insights are accessible to decision-makers at every level, so that impact is lessened if the platform is too complex for staff to leverage and C-suite leaders can’t gain the relevant insight.
Many old-school tools demanded near perfect data and data scientist level tech talent to deliver value. That’s no longer the case. Innovations in AI and no-code models mean composable simulation no longer requires spotless data or deep technical expertise. A happy by-product is that composable simulation avoids the downsides of data aggregation necessary to feed the traditional tools.
Even if substantial gaps are present in the available data, AI can synthesise the missing elements based on the available information. Through intelligent preparation of extensive simulation experiments it is possible to describe and fully explore complex scenarios which extend beyond the bounds of what could be achieved with ‘real’ data alone.
The result is a safe environment for testing operational decisions and modelling real-world impact, accessible to all, from technical specialists to the C-Suite.
Targeted change, strategic impact
In short, composability allows businesses to leave firefighting in the past, challenge the rigid guardrails that have held them back and achieve much-needed foresight. By building modular simulation digital twins, leaders can test new strategies, expose outdated rules and see the ripple effects of every decision before committing capital. Instead of reactively addressing bottlenecks, the supply chain becomes the cockpit for growth foresight, where the C-suite can align investors, operations and strategy – and act boldly with confidence.
A discussion with Cihan Likogullari, VP Sales EMEA & Global Key Accounts Pharma
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1.What new technological advancements are shaping the air freight cool chain for pharmaceuticals?
Temperature-controlled logistics for pharmaceuticals are rapidly advancing, driven by emerging technologies and technological advancements, real-time monitoring capabilities, and stricter compliance demands for next-generation therapies.
Real-time monitoring has become a core component of air freight cold chain operations, offering visibility that helps reduce risks and maintain the integrity of temperature-sensitive products all the way to the patient.
There is also growing emphasis on sustainability within pharmaceutical logistics. Stakeholders are prioritising the reduction of CO₂ emissions, making lightweight and space-efficient transport solutions more critical than ever to support greener, more responsible supply chains.
2.How are pharmaceutical organisations building resilience in response to increasing extreme weather and geopolitical disruptions?
Supply chain disruptions can significantly impact the delivery of pharmaceutical products, with climate change creating increasingly unpredictable weather events such as flooding, landslides, and severe storms. Additionally, the ongoing geopolitical instability and economic uncertainty continue to pose major challenges for global logistics.
Extreme weather impacts air freight routes and requires collaboration across all stakeholders and the entire supply chain. To maintain resilience and efficiency, logistics providers must manage containers proactively and be ready to respond to a variety of disruptions. A one-size-fits-all approach is no longer viable, particularly as shipments may be exposed to freezing temperatures, high heat, and humidity within a single journey.
3.What new innovations are improving risk management, excursion tracking, or real-time intervention in the cool chain?
Over the recent years, providers have increasingly adopted digital tools, ranging from IoT and blockchain to AI, to improve transparency, reliability, and operational efficiency. Real-time monitoring is deeply embedded in cold chain solutions, offering greater visibility and reducing the risk of temperature excursions.
Adopting AI remains an evolving process in the industry. Small improvements lay the foundation for long-term success. Achieving this progress depends on close collaboration between pharmaceutical companies, logistics partners, and technology providers to ensure integration and continuous innovation.
4.How has end-to-end visibility evolved to improve overall resilience and assurance?
Ensuring the safe transport of pharmaceuticals has always been a top priority, not just for supply chain stakeholders but for patients who depend on life-saving medicines. As regulatory requirements tighten and supply chains become more complex, data transparency and real-time insights are increasingly essential to a product’s efficacy.
Post-shipment data has long been available to customers, helping speed up product release and ensuring timely delivery to patients. Combining real-time data with human oversight allows for issues to be prevented, giving customers full confidence in the integrity of their shipments.
5.How are regulatory expectations influencing cold chain practices?
Stricter regulatory oversight is reshaping cold chain practices. Technological innovations such as Phase Change Materials (PCMs) and Vacuum Insulated Panels (VIPs) enable consistent internal conditions and shield products from external influences during transit. These advances help contract development and manufacturing organisations (CDMOs) meet global GDP standards and comply with diverse regional regulations.
6.How is the pharmaceutical industry addressing its environmental impact?
The pharmaceutical sector is responsible for nearly 5% of global greenhouse gas emissions. Of this, 80–90% stem from Scope 3 emissions – those produced indirectly throughout the supply chain. Reducing Scope 3 emissions is complex, but crucial.
One way the pharmaceutical industry is combatting this significant contributor is through the continued innovation of packaging. Forever-use packaging has been gaining momentum in recent years as it has been engineered with reliability, longevity and sustainability in mind. With its extended lifespan, it’s a clear way for industry to reduce waste and lower their CO2 emissions.
7.How have partnerships and collaborations helped the industry build greater resilience and sustainability?
Strategic partnerships between pharmaceutical companies and CDMOs or CMOs are playing a vital role in strengthening resilience and sustainability across the industry. These collaborations enhance efficiency, lower costs, and provide access to specialist knowledge and advanced technologies that accelerate innovation and improve product quality. They also improve regulatory compliance and risk management, both critical to the successful delivery of complex treatments. By aligning resources and expertise, these partnerships create more agile, responsive, and future-ready supply chains.
Sustainability must be a central aspect in supplier and partner selection. By prioritising climate-conscious collaborators, pharmaceutical organisations can reduce emissions across the supply chain. Long-term partnerships rooted in shared environmental goals not only support compliance but also deliver financial and operational benefits. In an increasingly complex world, the future of pharmaceuticals will be shaped not just by innovation – but by the strength and depth of collaboration.
As pressure mounts to deliver faster and more reliably, the ability to adjust in motion becomes a vital competitive edge
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Supply chain disruption is no longer an anomaly; it’s a constant. From geopolitical tension and rising fuel costs to climate-related events and shifting regulations, logistics leaders are navigating an environment defined by volatility.
But that’s only part of the story. Rising accident rates and escalating costs are adding further strain: large truck crashes have increased since 2024, despite widespread safety efforts. At the same time, fleets are grappling with tightening regulatory and compliance pressures, from evolving emissions rules, such as the EPA’s proposed heavy-duty vehicle standards, to more stringent Compliance, Safety, Accountability (CSA) scoring.
As a result, the concept of supply chain “resilience” has evolved from a buzzword into an operational necessity. At the centre of that resilience is real-time visibility, not only across shipments and inventories, but across fleet safety and compliance too.
While many organisations have made significant strides in digitising warehouse operations, improving demand forecasting, and modernising port logistics, one area remains critically under-addressed: road transport. Despite being one of the chain’s most vulnerable and variable links, the road remains a blind spot for many. Recent research reflects this gap – more than 70% of respondents admitted their fleets lack real-time visibility into road conditions.
Supply chain leaders are grappling with an acute driver shortage that threatens the backbone of road transport. Across the EU, Norway, and the UK, there is already a shortfall of over 233,000 truck drivers, a gap projected to swell to more than 745,000 by 2028 as older drivers retire without enough new entrants to replace them. In the UK alone, an alarming 55% of HGV drivers are aged between 50 and 65, with an average age of 51, signalling that a significant portion of the workforce may leave within the next decade.
Against this backdrop, supply chain leaders must embrace real-time road intelligence, powered by artificial intelligence and edge-computing vision systems, as a key strategic tool for visibility, adaptability, and risk management.
Road transport: A dynamic environment with limited visibility
These mounting challenges highlight the urgent need for stronger oversight and proactive risk management across fleets. Unlike static warehouse environments or planned shipping schedules, roads are dynamic and unpredictable. They’re impacted by human behaviour, weather conditions, infrastructure quality, and spontaneous events, any of which can delay deliveries or damage goods. Yet visibility into these disruptions often remains alarmingly limited.
A recent survey revealed that while 84% of safety leaders identified fleet safety as a high priority, 60% admitted they have no formal fleet safety technology in place, frequently relying on nothing more than basic GPS tracking. Moreover, 46% of surveyed professionals are still unclear about the full financial impact of accidents on their businesses, underscoring how visibility gaps continue to be a serious liability. Without accurate, real-time data on driver behaviour, vehicle conditions, and external risks, companies are left reactive rather than proactive, a critical threat to supply chain resilience.
Edge-computing vision systems powered by artificial intelligence (AI) address this challenge by collecting and processing road-level data directly at the source in real-time. These systems provide immediate insight into traffic conditions, driver behaviour, and environmental hazards, turning the road from a risk point into a source of actionable intelligence. They also play a crucial role in optimising operational costs, a large fleet of delivery trucks means high expenses, and keeping these under control is a constant challenge, especially for companies managing hundreds of vehicles making multiple deliveries each day.
For instance, when weather patterns shift quickly or congestion builds on a critical route, teams can reallocate resources, reroute vehicles, or update delivery schedules in real-time. This shift from reactive management to proactive planning is one of the key advantages of road intelligence.
Systems capable of analysing 100% of drive time add another layer of value, capturing full journey context to support decision-making, coaching and incident resolution.
AI and risk mitigation
AI is a core enabler of dynamic risk mitigation. Rather than relying on historical averages or static route plans, modern AI-driven systems identify emerging patterns and adapt recommendations based on current conditions.
This includes spotting subtle indicators of risk, such as shifts in driver behaviour that suggest fatigue, or clusters of hard braking in a specific area that might point to a developing road hazard. As foundational models evolve, AI is even being trained to predict the likely movements of drivers and vehicles, enabling earlier intervention to prevent incidents before they occur. With this level of intelligence, logistics teams can anticipate disruptions before they escalate and respond proactively to keep operations on track.
Crucially, advanced driver safety platforms today do far more than just warn of lane departures or potential forward collisions. They continuously analyse driving performance in real time, issuing immediate voice alerts to correct risky actions, turning each potential hazard into a safer outcome on the spot. For example, a driver about to tailgate or showing early signs of drowsiness can receive a prompt to adjust, helping avert accidents before they happen. Many systems also incorporate positive reinforcement, recognising and rewarding safe driving habits to strengthen safety cultures across fleets.
This kind of dynamic responsiveness is essential during peak demand periods, extreme weather events, or disruptions to global trade routes. As pressure mounts to deliver faster and more reliably, the ability to adjust in motion becomes a vital competitive edge.
Building resilience into the last mile
The last mile has become one of the most scrutinised segments of the supply chain, where delays and miscommunication are most visible to customers. It’s also where efficiency and traceability are most challenging to maintain, particularly during external disruptions.
Real-time road intelligence provides the operational agility to protect this final delivery stage. By integrating road-level data into dispatch and routing systems, teams can make micro-adjustments that reduce delays, improve customer communication, and avoid costly rework.
This agility can also help prevent compliance breaches, protect product quality, and reinforce customer trust in temperature-sensitive or high-value logistics. Fleet managers using AI-driven road intelligence platforms have already seen measurable improvements, such as a 50% reduction in road accidents, by combining real-time alerts with proactive coaching sessions.
Closing the gaps: From compliance to ESG
Beyond operational continuity, road intelligence also plays a critical role in helping organisations meet growing regulatory and ESG requirements. Visibility into emissions, idling time, route efficiency, and driver behaviour helps teams identify areas for improvement and demonstrate measurable progress against sustainability goals.
It also supports ethical business practices, ensuring safety is prioritised, risky behaviours are addressed constructively, and drivers are given the tools to perform at their best. This reinforces a safety-first culture contributing to long-term resilience, driver retention, and public trust.
Real-time road data provides the insight and accountability needed to align transport operations with broader environmental and governance commitments.
Looking forward: A strategic asset, not a tactical add-on
Real-time road intelligence isn’t a tactical bolt-on; it’s becoming foundational to building resilient supply chains. By embedding AI-powered insights into core logistics processes, organisations gain the flexibility to respond faster, the foresight to avoid costly disruptions, and the intelligence to meet evolving expectations.
In a world where supply chains must operate precisely in dynamic environments, the ability to see and respond at the edge is crucial.
The road has long been treated as the most unpredictable link in the supply chain. However, with the right intelligence in place, it can become one of the most strategic. AI, when fuelled by scale, speed and visibility, becomes a force for good, reducing accidents, empowering drivers and creating a safer ecosystem for everyone on the road.
At the most recent Exiger Executive Forum, we had the opportunity to listen to the experts discuss how supply chains can shore up in chaotic times
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Most often than not, the control you have over your value chain is an illusion.
That’s the bold statement November’s Exiger Executive Forum picked to examine and dissect. The event, entitled False Security: The Illusion of Control in Modern Day Value Chains, was chosen carefully to reflect what procurement and supply and value chain leaders are concerned about today.
On the 18th of November, we joined Exiger and its distinguished guests at the beautiful Great Scotland Yard Hotel in London to dig into this topic and hear directly from the best of the best in an expert panel. The guest list reached from defence leadership, supply chain experts, world-leading analysts and senior politicians.
The aim? To challenge that illusion of control, and frame the conversation as a tough love wake-up call. Without open dialogue like this, risks can quietly accumulate in the background, leading to systemic failures.
That’s why the Exiger Executive Forum is so important. By giving the most pressing matters – especially the uncomfortable ones – a platform, issues are demystified and disempowered and real solutions to be put into place – both with deep values and credible pragmatism. This allows leaders in procurement and supply chain to resolve modern day challenges with confidence, regain lost control and determine their future and not merely react.
Tim Fowler, Client Engagement Director at Exiger, acted as moderator for the evening’s discussions. He opened the discussion with a sobering reality: that organisations all over the world are facing systemic risks. “Global supply chains are more data-driven, more regulated, more digitised than ever,” he explained. “But, paradoxically, they’ve never been more fragile with the convergence of geopolitical fragmentation, resource scarcity, technology threats, and regulatory volatility.”
The risk caused, Fowler said, is one that “hides in plain sight”. Many enterprises operate under the assumption that they have full visibility of their suppliers, and that as a result, they’re in control. However, dig a little deeper and there are many unseen dependencies, regional concentrations, and of course, human risk. With a more hopeful lilt, Fowler then reminded attendees that the goal of the Executive Forum is to explore what real control and resilience means in a chaotic and ever-changing world, with the help of the expert panel:
• Koray Köse, CEO & Chief Analyst, Köse Advisory; Senior Fellow, GlobSEC GeoTech Centre; and Board Member, Slave-Free Alliance
• Scott LaFoy, Vice President, Nuclear and Technology Security Programs, Exiger • Sven Markert, Head of Supply Chain & Logistics, Siemens Smart Infrastructure • Angela Qu, Advisor, Strategist, and former Chief Supply Chain Officer • Faysal Rahman, Director, Corporate Coverage – Global Defence Coordinator, Deutsche Bank
The illusion of control
In the first segment of the evening’s strategic expert exchange, Fowler dug into the concept of this illusion of control with the panel. For Köse, the illusion of control is one of the greatest blind spots in modern business. But why? “It’s all based on our systemic understanding or how we actually created value in the past,” he explained. “Not 50 years ago, but even just 10 or 15 years ago, the world looked very different from what we are facing today. Changing the rules of the game is something many companies still do not examine seriously. It requires a deep review of how their value chains are designed, the governance and compliance structures that guide them, and the intelligence embedded into their processes. Ultimately, it is about building resolve and the capability and capacity to not only survive the challenges of today, but to shape and compete in the markets of tomorrow.”
Following this, Qu was asked whether she has also witnessed a false sense of security within governance models in organisations she’s worked with. She pointed out that many companies now have risk mapping, risk monitoring, and risk mitigation as a top agenda since COVID-19, but shortages and disruptions continue. What’s key, for Qu, is “awareness, visibility, and overview. I think we’ve made big steps in the last 2-3 years,” she explained. “There are a lot of conflicts in the classical KPIs, which are still siloed even after the COVID crisis. That’s why you need good visibility of the whole value chain setup – not only tier one.”
For Markert, maintaining agility when managing various political, technological, and economic challenges has been a major undertaking. “The truth is, I don’t know if we really maintain the agility or just manage the chaos,” he admitted. “We’re focusing on adaptability over perfection, so we accept that full control is impossible. Then, we’re coming back to basics. This starts with processes, then technology. Lastly, people are the most important and most valuable assets you have. You have to build up cross-functional teams. We don’t want to predict the future; we want to be prepared for the future.”
From a financial standpoint, Rahman stated he believes it’s important to take a step back and contextualise the challenge we’re living in. The last few years have seen a pandemic, wars, and geopolitical tensions the likes of which have never been seen, impacting supply chains. With this in mind, Rahman believes that there “couldn’t be more of an emphasis” on supply chain resilience. “How do you make sure your operational resilience is robust so you can withstand black swan events that are becoming more and more common?” he asks. “Diversification of risk is really important.”
Sometimes, failure is simply not an option. For LaFoy, who works with national security-grade supply chains, having all of the information in front of you is great, but it means nothing if you don’t use it to take action. “Often people think they can see everything, and that’s only step one of the problem – it doesn’t fully address it,” he said. “You have to be willing to take action within the organisation, to mitigate the problem, fix it, and try to rebuild. People like to say that they’re going to fix their supply chain, but the supply chain is likely supporting a programme that has existed for so long it’s entrenched within the organisation. So it’s almost always too late.”
Vulnerabilities and systemic risk
Fowler: “Where do you see the biggest unseen vulnerabilities accumulating today?”
Köse: “It’s in the KPIs. Companies are measuring themselves against metrics that no longer drive sustainable or resilient value creation in today’s world. They still prioritise short term shareholder returns that evaporate with every risk event. KPIs shift from quarter to quarter, yet value chains take decades to build and mature, just as supplier partnerships and political relationships take decades to cultivate. Both can erode rapidly when interdependent opportunistic and negative actions and disruptions occur.”
Fowler: “How do you encourage best practice and good behaviour with your clients?”
Rahman: “The number one ingredient is confidence. Having transparency across the value chain, the supply chain, the governance procedures, is super important too. It can take 50 years to build trust and one second to lose it, so it’s important to take a very risk-averse approach while being very commercial and pragmatic.”
Fowler: “What have you seen work in terms of breaking down siloes to drive agility?”
Qu: “I usually go with strategy, organisation, technology. Technology encompasses risk mitigation, as well as ESG and compliance. We need dedicated projects, working with suppliers and engineers to reduce waste and create internal excellence. Personal resilience is also very important.”
Fowler: “How do you balance all the elements of regional concentration and supplier dependency?”
Markert: “Efficiency is still key if you want to stay competitive. We cannot optimise purely on costs anymore – that’s gone. We have to take into consideration, as Angela said, the transparency insights beyond tier one. For me, it’s all about continuity and compliance.”
Fowler: “What lessons can the private sector draw from defense-grade risk management?”
LaFoy: “The defence-grade supply chain has this draconian adherence to certain processes, and that inflexibility doesn’t always translate in a positive way. But in this case, it’s necessary to examine what key things you’re prioritising as a company.
Technology, intelligence, and the myth of visibility
It’s clear, in spite of the warnings about vulnerabilities and control, that the overall feelings for supply chain professionals are hope and determination. Fowler introduced the next segment of the conversation by mentioning that investors and PE companies are now focusing on supply chain risk and resilience as key measures. This bodes well for those in supply chain when they inevitably come to justifying proposed improvements. The fact that supply chain risk ties directly into financial risk proves once again that supply chain is a business-wide concern, if there was any remaining doubt.
For Rahman, from a financial perspective, there are a couple of areas clients are focusing on when it comes to their investments. “One is financial risk,” he told Fowler. “What we mean by that is leverage – how much debt and cash they’ve got on the balance sheet. The other is business risk, which is quite broad. It’s about how much the product is needed in the market, whether it’s a diversified product, and so on.”
When it comes to questions of compliance and ESG in supply chain, balancing those areas of focus with what investors want can be a challenge. Those investors may have a clear idea of their areas of interest when thinking about risk and resilience, and Qu’s solution for making sure those vital areas don’t get overlooked is to always see things from the customers’ perspective.
“That customer, if you want them to choose your product versus a product from competitors, they want to know you’re compliant to all regulations,” she explained. “That results in collaboration among different departments to focus on a common goal and how we achieve it. Also, you need an overview of potential risks and have solutions in place for those focus areas, supported by technology. Things can go wrong, but if that happens when you’re prepared, it’s not the end of the world. There are still activities where humans can take over.”
The conversation again turned to leadership, and how that affects organisations in a way that incentivises them to focus on protection and resilience, while not stifling innovation and agility. The key, for Köse, lies in communication and constant messaging, so vital areas don’t get forgotten. “The important factor is drawing the journey very clearly to everyone who is a stakeholder in this process, and make sure that every part of their contribution will become part of the overall value creation process. When we talk about resilience, you always need to think about the next step. We’re not necessarily predicting anything, but we’re preparing for everything.”
The conversation shifted to summarising comments, where the panellists highlighted resilience across all functions, with a heavy emphasis on supply chain, utilising AI to help navigate decisions, and simply showing up as being some of the most important aspects to getting the modern supply chain right. “We need to be able to understand, from A to Z, geopolitical interdependencies, financial impact, innovation impact, industrial history, and the most valuable assets – your people and your culture,” Köse concluded. “Showing up in that context, and driving that as leaders, is ultimately really critical.”
During the course of the evening, the expert panelists exposed the glaring issues and shattered illusions across the modern value chain, while leaving attendees hopeful that they can achieve operational resilience through a proactive commitment to preparedness. Thank you to Exiger for inviting us to join in this vital conversation; we look forward to the next one.
These milestones reflect not just commercial progress, but market validation of Exiger’s platform
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The US Army has licensed Exiger’s AI software in order to accelerate its defence acquisition, reduce lead times, and enhance operational readiness. It’s part of a multi-million collar contract that’s been awarded to Exiger to provide end-to-end supply chain risk illumiation.
“This is a revolutionary capability that will transform the way the U.S. Army approaches sustainment,” said Exiger CEO Brandon Daniels. “Our software will help identify at-risk NIINs that may be subject to undue constraints from a variety of factors. It will unlock the organic and additive capabilities that the government has invested in. And it will monitor for severe risk hiding in the supply chain, identifying where natural and manmade disasters, supplier operational and reputational risk, and foreign adversary sourcing could create disruptions in the weapons systems our warfighters depend on. Together, these capabilities deliver a more predictive industrial base, capable of responding to evolving mission needs at speed.”
Exiger has also joined forces with Palantir as part of this project, combining Palantir’s operating system with its own mission-built supply chain AI.
“This partnership combines Palantir’s and Exiger’s world-class technologies to integrate production decisions with battlefield demands, ensuring the US Army can deliver faster and more reliably to those on the front lines,” said Mike Gallagher, Head of Defense, Palantir.
“AI and automation across the supply chain enable deeper visibility, faster risk surfacing, active and proactive mitigation, and accelerated supply movement, giving commanders and portfolio acquisition executives a level of foresight and speed never before possible,” Daniels added.
The appliance company has overhauled its entire UK and Ireland logistics operations
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Global home appliance business, Versuni, known for iconic brands including Philips, Saeco, and L’OR Barista, has successfully completed a major overhaul of its UK and Ireland logistics operations, boosting performance, resilience, and readiness for growth.
The project, managed by global supply chain and logistics consultancy SCALA, saw Versuni transition its UK and Ireland 4PL operations to a new third-party logistics (3PL) provider. The transition was designed to strengthen Versuni’s service capabilities in the UK and Ireland, simplify logistics management, and improve reliability across B2B, ecommerce, and retail channels. The new arrangement offers a seamless, scalable solution well aligned with Versuni’s future growth plans.
With no UK-based supply chain team, Versuni enlisted SCALA to coordinate planning, stakeholder engagement and integration with its SAP systems environment.
The new 4PL solution is based at a shared-user facility in Kettering, where more than 7,000 pallet spaces are reserved for Versuni products. The facility provides a full range of services, including import receipt and checking, retail order picking, direct-to-consumer fulfilment, returns and reverse logistics, and transport coordination with proof-of-delivery management.
Bartosz Gruszczynski, Senior Warehousing & Distribution Manager, Europe, at Versuni, said: “The UK and Ireland are strategically important markets for Versuni and our brands. It was vital that this transition improved service levels without compromising operational continuity.
“Through strong collaboration with SCALA and our new 3PL provider, we achieved a seamless handover. The result is a more robust, reliable logistics approach that gives us the confidence and capacity to grow in the region.”
The project ran from September 2024 to April 2025. Within the first month of go-live, 95% of orders were successfully delivered, demonstrating the smooth transition between providers.
Phil Reuben, Executive Director at SCALA, added: “This project highlights what can be achieved with clear goals and a collaborative approach to delivery. We’re proud to have supported Versuni and its brands in building a logistics solution that is fit for the future – and already delivering measurable improvements.”
With the project now complete, Versuni has not only streamlined its operations but enhanced the service experience for customers of its much-loved brands. The strengthened UK and Ireland platform ensures greater scalability, visibility, and control, setting the stage for further growth across retail and ecommerce.
The acquisition allows FourCentric to expand its procurement and supply chain expertise in the defence and security sector
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FourCentric, a leader in procurement, supply chain and operations improvement services, has announced the acquisition of Evolve Commercial Ltd, a UK specialist in Commercial as a Service (CaaS). Evolve provides technology procurement and supply-chain support across both public and private sectors.
Effective 31 October 2025, Evolve Commercial joined the FourCentric group, enhancing the company’s capability to help UK government departments and private organisations efficiently optimise contracting for high-value and complex projects.
Evolve’s consultants bring extensive experience in areas such as complex tender transactions, post-contract management and commercial due diligence, helping clients unlock full supplier capability and enhance commercial outcomes.
“We’re thrilled to welcome Evolve to the group,” said Simon Terry, Group CEO of FourCentric. “This acquisition perfectly aligns with our strategy to deliver commercial services in support of complex technology transactions throughout the commercial lifecycle. Evolve’s specialists bring deep government procurement experience and a strong focus on delivering powerful outcomes in the defence and security sector. Backed by a highly secure infrastructure, clients are assured of secure, seamless integration and trusted, high-quality delivery.”
The addition of Evolve enhances FourCentric’s ability to build long-term partnerships with clients by offering new ways to drive value and improve operational performance.
“We are delighted to be part of the FourCentric group,” said Alan Riordan, Director of Evolve. “FourCentric is the ideal fit for us. Not so large that we get lost in the crowd, and not so small that it limits investment and growth opportunities for us and our clients. The FourCentric model provides a fantastic platform to enable the continued development of our business and our team for the future. This, coupled with the group’s clear vision: To be known as the leading procurement, supply chain and operations firm, recognised for creating significant, positive impact for our clients, people, and society, was a real compelling reason to join.”
Agreena now has two methodologies validated to the highest levels for their respective use cases
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Agreena, the company powering the global transition to regenerative agriculture, has achieved validation of its Scope 3 Project from SustainCERT, the independent validation and verification body recognised for its role in ensuring transparency and credibility in climate accounting.
This news comes as corporates face mounting pressure to disclose verified Scope 3 emissions under the Science Based Targets initiative (SBTi), the EU Corporate Sustainability Reporting Directive (CSRD), and upcoming US SEC climate disclosure rules. Agreena’s SustainCERT validation for its on-farm regenerative interventions is the first step toward verification into Verified Impact Units (VIUs). Once issued, VIUs will give companies a traceable, auditable way to account for investments in decarbonising their agricultural supply chains — typically the largest contributor to total Scope 3 emissions — while enabling co-claiming across the value chain.
The announcement follows the Agreena Carbon Project’s Verra Verified Carbon Standard (VCS) verification in September, which issued 2.3 million carbon credits across 1.6 million hectares of regeneratively farmed land. SustainCERT validation builds on this integrity, focusing on Scope 3 reporting and enabling core safeguards such as tracking Impact Units and Proof of Sourcing.
The validation helps companies mitigate risks like double counting and freeriding, supports multiple types of farm partnerships — whether companies source directly from those fields or engage through wider value-chain collaborations — and drives collaboration across the value chain through co-financing and co-claiming arrangements, ensuring exclusivity and confidence in reported data.
Simon Haldrup, CEO and Co-founder and CEO of Agreena, commented: “SustainCERT validation reinforces Agreena’s role as the bridge between corporate ambition and farmer action. For companies with agricultural crops in their value chains, this milestone unlocks a way to collaborate directly with farmers and suppliers to transition to more sustainable practices, reduce emissions, and verify increases in soil carbon. By enabling verified impact to be transferred along the value chain with integrity, we’re helping build a more transparent and collaborative model for agricultural decarbonisation.”
SustainCERT’s validation assessed the Agreena methodology, data model, and monitoring, reporting and verification (MRV) framework – confirming alignment with recognised international best practices and the globally adopted Verra VM0042 methodology. This ensures that each Impact Unit carries a comparable level of credibility and assurance to a Verra-issued carbon credit.
“The Agreena S3 Project supports farmers across Hungary, Romania, Poland, Spain and the UK in adopting regenerative agriculture practices to reduce emissions and increase soil carbon. Methodology VM0042 is used to measure GHG reductions and removals. We concluded that the design of the Agreena S3 project meets the SustainCERT Verification requirements for Value Chain Interventions,” added Marion Verles, CEO of SustainCERT.
The London Excel is hosting five unmissable events on the 12th and 13th of November 2025. Find out more here.
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Big things are happening on the 12th and 13th of November 2025, at London’s Excel. With five supply chain events all occurring at once, the Excel is sure to be abuzz with shared ideas and excitement for the future of the sector. The five events hitting London are:
White Label World Expo
Retail Supply Chain + Logistics Expo
Smart Retail Tech Show
E-Commerce, Packaging and Labelling Expo
The Business Show
Read on to find more about these events, and how you can get your tickets.
White Label World Expo
Anybody looking to connect with the top white and private label manufacturers in the world should make their way to the White Label World Expo 2025. A whopping 16,000+ attendees come to this event to meet with 50 exhibitors and hear from over 150 experts. Organisations of all shapes and sizes, from startups to Amazon sellers, flood to White Label World Expo to get a better idea of the landscape, with a particular focus on:
Home and kitchen (which is the most sought-after category among sellers on Amazon)
Health and personal care (the third-fastest growing e-commerce sales category this year)
Food and drink
Pet supplies (one of the most successful categories on Amazon)
Clothing, shoes, and jewellery
Toys and games
Tech and electronics
CBD and vape
Office supplies
…and more.
The event also celebrates some of its exhibitors with its own awards show, celebrating the most innovative and best products in online retail.
Innovation and efficiency collide at the Retail Supply Chain + Logistics expo. This is an event where attendees come face-to-face with industry leaders and experts, unlocking access to the best guidance for improving and streamlining logistics, becoming more efficient, and boosting customer satisfaction.
As the logistics landscape evolves, supply chain professionals need to keep on top of the latest in groundbreaking transport technologies and innovations, all the way to warehouse automation, in order to be equipped for the future. That’s what this event is for.
With 200+ exhibitors, over 50 seminars across the two days, and more than 5,000 visitors, the Retail Supply Chain & Logistics Expo is a must-attend for supply chain professionals all over the world.
Technology is an extremely fast-paced market, and the Smart Retail Tech Expo enables 3,000+ retail professionals to find out what’s the next big thing on the market, and how best to move forward to remain competitive.
Join in the event to witness demonstrations of the newest tech on the market, interact with peers, and learn from experts. The innovative exhibitors will be showcasing ways to improve operations, enhance the customer experience, drive growth, and enhance safety.
The Smart Retail Tech Expo is for key decision-makers across independent retailers and global chains alike. This is where retail innovation happens.
The E-commerce, Packaging & Labelling Expo shines a spotlight on the latest in sustainable packaging solutions, trends, and innovations. Over 3,000 visitors are expected to join in and learn more about this rapidly-evolving market.
The event will showcase:
More eco-friendly packaging materials
Innovative labelling technologies
New fulfillment solutions
Waste reduction strategies
Boosting the customer experience
…and more.
This event is all about supporting sustainable growth in a rapidly-evolving, increasingly complex market.
To get tickets for the E-commerce, Packaging and Labelling Expo in London, click here
The London Business Show
The Excel hosts the world’s largest business in November. The award-winning London Business Show brings together over 25,000 attendees, who flood in to find the support and resources they need to improve and scale their businesses.
Visitors will gather advice from experts and peers alike across the two-day event. With over 200 seminars and 500 exhibitors, there’s loads to see and learn about. The event includes:
Speed networking: Quick-fire networking sessions to allow you to connect with fellow professionals.
Industry-leading exhibitors: Exhibitors will be showcasing their latest products and services.
Masterclasses: Experts are on hand to offer mentorship and in-depth advice.
Want to propel your business to the next level? That’s what the London Business Show is all about.
The proof, as they say, is in the pudding – and the evidence of TealBook’s increasingly-successful evolution lies in its client relationships
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We talked endlessly about data and AI at DPW New York 2025. A universal truth is that the successful implementation of AI requires clean data; it doesn’t have to be perfect, but businesses certainly need to have a decent handle on their data before adopting AI tools successfully.
To help make this a reality, North American data and software company TealBook has recently announced a legal entity-based data model. It’s designed to resolve supplier records to the correct legal entities, map parent-child relationships, and enrich profiles with verifiable attributes, enabling accurate supplier data to flow seamlessly into procurement systems and AI applications. “This is part of a 12-year journey for TealBook,” says Stephany Lapierre, the company’s Founder and CEO. “Our vision has always been to build a way to enable procurement organisations to have high quality data with a lot of integrity, in order to give them the trust they need to put data directly into their systems.
“Twelve years ago, we underestimated the complexity of getting large enterprises to trust a third-party data solution. As part of our journey, we started using AI early on to find information where it exists on supplier websites and databases, and start creating digital profiles in a structured way for procurement to access it, match it to their vendor master, and use it.”
TealBook’s evolution
But, again, at the beginning, TealBook couldn’t be sure whether the data was high enough quality. In 2017, the company was primarily known as a supplier discovery application, positioned as a pre-sourcing engine to help procurement teams identify alternative suppliers. At the time, TealBook’s data and models enabled it to determine which companies were similar to others, allowing users to search and find comparable suppliers to expand their sourcing options.
“But that was just a way for us to deliver something that was underserved in the market,” Lapierre continues. “Then our customers started asking for certificates, which are hard to collect and match. They needed cleaner data. They felt they were under-reporting. So in 2018, we started to see whether our technology could refine the data more, and focused on certificates and supplier diversity. We collected great use cases along this journey, and the vision never wavered.
“Just last year we released a new technology – completely different, really sophisticated – allowing us to pull from a lot more data sources, and we have provenance so our customers can actually verify where the data’s coming from. We can match it to vendor masters. And now, we also have this new model that includes 230 million verifiable global legal entities from across 145 countries’ registries. We marry this with global parent and child hierarchy, which is really hard for our customers to match themselves.”
Partnership with Kraft Heinz
Now, after 12 years of that vision, TealBook is deeply proud of what it’s achieved. Part of its ability to get to this point is due to early adoption from key customers. Kraft Heinz is a business which Lapierre describes as a “co-innovation partner”, and has been invaluable in helping TealBook achieve its recent goals.
From the perspective of Stefanie Fink, Head of Global Data and Digital Procurement at Kraft Heinz, the partnership has been an immediately valuable one. “It really started with having a visionary, like-minded relationship,” she says. “That’s an important piece of it, because my vision for procurement is that we are partners in our enterprise.
“In order for us to do our jobs, we have to bring in the right data for use. This is where Stephany’s partnership and vision really resonated. We were really looking for diversity and we could make things easier for our partners, while making sure we had the right people in our ecosystem. We also had to lift up the hood and see what was underneath everything we’ve got. Stephany brought our vision to life. TealBook has evolved too, as we’ve seen; it’s more about orchestration and software-as-a-service. It has been a partnership of need and we cannot continue to do other things without this kind of partnership around data.”
When initially dabbling with this relationship, Fink was clear that Kraft Heinz had no desire to be taking care of more stuff. What she wanted from TealBook was a strong focus on good quality data. After last year’s product release from TealBook, Kraft Heinz already saw its data enriched by 25%. The recently-announced new data model gives the business and TealBook’s other customers the right structure tied to a legal entity, which is a highly credible anchor. “We’re able to do entity resolution – all automated – remove all the duplicates, and then you start with a clean, digitised vendor master,” says Lapierre. “That’s what brings further enrichment.”
The challenge of assessing data quality
Assessing its data before involving TealBook was important for Kraft Heinz, but challenging for such a large organisation. “We had to fail first and fail fast,” says Fink. “We tried some AI around fixing things early, but that didn’t work for us. It was a real eye-opener, realising where this next evolution could take us regarding focusing on AI and agents for the right things, not the meaningless things. Before, we were asking agents to tell us if things were duplicates, when we should have been asking: what do these suppliers offer? Where is the innovation? Where is the value?”
What surprised Fink most when looking under Kraft Heinz’s hood was the lack of attention that was being paid to what the business was doing. “It was amazing that nobody had questioned it sooner,” she says. “So I said, let’s take this as a crawl, walk, run approach, and I have a wonderful CPO who really understands where we want procurement to go as a function. She was excited about us just getting it done and getting people involved, and that’s what it takes: real pride in ownership of the data.”
Getting engrossed in GenAI
True partnership and an all-in approach has enabled Kraft Heinz to work successfully with AI – something some businesses are struggling with as the conversation around artificial intelligence grows louder. For Lapierre, as the CEO of a tech company, adopting AI successfully has meant trying and failing and being fully entrenched in AI as it has evolved.
“We’ve been using AI in our technology since 2016,” she states. “We’re an early adopter. We’d be talking about scraping data, and data in the cloud, and AI models, and our customers’ pupils would widen in surprise. We’ve come a long way and the market has come a long way.
“The technology we deliver today wouldn’t be possible without the AI tools now at our disposal. We used to build models; we don’t do that anymore. We spend a lot of time investing in engineers to build and test models, and that’s made us so much more efficient. I use GenAI every day for so many things now, and I’m encouraging my team to be so involved in AI. That’s how you build expertise, and you need really strong expertise to use GenAI well.
“Getting good with AI is about taking risks and having a leadership team that pushes for new things, and suddenly the successful use of AI becomes a habit.”
The march towards agentic AI can be a daunting thing, but it’s important to get over that fear in order to make strides
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A common question when discussing AI is ‘where do humans fit in?’. The fear of technological advancements stealing our jobs is an old one, but the conclusion is always the same and always true: there will never be a time when human judgement and teamwork isn’t required.
At DPW New York 2025, we sat down with Rinus Strydom, Chief Revenue Officer at Pactum AI, and Steven Velte, Executive Director Procurement Transformation at Honeywell – a customer of Pactum AI – to discuss AI’s evolution and the human connection. As AI develops, for Strydom, Pactum’s focus is on agentic, rather than generative. There’s a key difference there, especially for initial adoption at large enterprises.
“A lot of enterprises feel a little bit afraid, because generative AI can go a little off the rails,” he explains. “But when you put agents to work, they’re always within the rails that are defined by the customers. Once we get over that hurdle and can make clients see that they can take their procurement operating model and have it just run at scale with agents, rather than being afraid that their image will get tarnished, AI can be put to work much faster.”
Putting AI to work
When it comes to strategies procurement leaders can adopt to make AI work for them, it’s a major discussion point for Strydom and Velte. As a customer, it’s important for Honeywell to feel like its work with Pactum AI is a collaboration; it’s part of what makes its strides into AI work successfully. “This collaboration goes deeper than what we’ve typically had in the past,” says Velte.
“When we go through organisational changes, we need a true partner, And when that partner gets into the elevator with you, they don’t just push the button with you – they go up to the next floor with you and sit at the table to talk about what’s happening. So a barrier to AI adoption is not having that deep collaboration and partnership.”
“I think another thing leaders can do today is really help with that psychological change management to make it feel like a safe thing,” Strydom adds. Mindset shift is such a vital part of this change, especially when it comes to successful collaboration. “It’s important to embrace agentic AI, to encourage people to become managers of agents and not run away or become fearful.”
Identifying the opportunities
The true benefits of AI are now beginning to present themselves, as people increasingly embrace AI. For Velte, businesses have to get going with their AI plans in order to realise where the real opportunities lie. “I can make a business case with tons of ROI, potential productivity gains, revenue uplift, bottom line, profit line – all of that. But the real benefits that come from AI are those hidden benefits we don’t realise. When you start looking at it, there’s a common theme of saving time, and time becomes the real benefit. Unlocking better use of time gives you more potential to work on other creative aspects of the business.”
For Strydom, the true value lies in achieving things that used to be extremely difficult to achieve. Pactum AI’s customer base is broadly looking at 10X ROI, which, now, is easily done thanks to the use of AI agents. Agents also allow procurement teams to scale extremely fast, which is something that has, historically, been hard-won.
“For example, if you need to change payment terms across your entire supply base, you can do that with thousands of agents in parallel. You could never do that before. It gives you the agility to react to global macro risk issues, like tariffs.”
Start now; perfection comes later
One of the loudest topics of conversation at DPW New York 2025 was data quality and the challenge of cleaning that data up. It’s a huge topic, and a daunting one. Many businesses fall into the trap of thinking their data has to be perfect before they can get fully involved with AI, but the conclusion many procurement leaders are coming to is that getting started is more important than perfection.
“Data quality is always the holy grail going forward,” says Velte. “Everyone’s going to look for it, and try to attain it. When you start implementing within an AI framework, you just need to go in there and know that you’re going to constantly evolve in a good way, thanks to the agents, AI programs, and initiatives. They’re going to uncover and unlock a lot of data and inconsistencies that you have. You won’t get there unless you start looking into them as an opportunity area. Data perfection is not the way to go; it’s about getting in there, starting to look at the opportunities, and being willing to be creative, disruptive, and innovating quickly.
“There’s never going to be a time when everything is 100% correct and accurate, because data is always evolving,” adds Strydom. “Start now. The data can be enriched over time with the agents’ help.”
Maximum savings, maximum momentum
Pactum is using AI specifically to enable it to be a strategic advisor for customers like Honeywell. The use cases coming out are very new, and changing fast. What Strydom and his team want is to be able to guide customers on the right strategies for them, how to get maximum savings, and maximum momentum. As this landscape becomes more complex, human intervention and guidance is more important than ever, which links back to the topic of mindset and change management.
There’s been a lot of debate within Pactum AI as to how the business embraces this. “From a marketing perspective, too, there’s the question of whether we should make our agents look human,” says Strydom. “Actually, what we’re seeing is that suppliers actually enjoy interfacing with a bot. Walmart, one of our customers, did a survey where they found that 85% of their suppliers actually prefer to negotiate with Pactum than with a human. It’s more efficient, fair, and unbiased.”
Speaking of humans, shortage of talent has been a talking point within procurement for some time. That was, until advanced tech became more widely adopted, and bringing in procurement experts became less important than bringing in technology experts who are willing to learn. With the advent of agentic AI, according to Strydom, procurement leaders are now acting as managers of agents.
“All the analyst surveys say that procurement organisations are being asked to do more with less every year,” he says. “So the type of talent is definitely transforming. What we see is that the procurement organisations of the future are much more strategic. They’re focusing on creating strategy and procurement policies and procedures, and then having the agents actually go out and do the menial day-to-day work – entering things into ERP, turning requisitions into purchase orders, onboarding suppliers, and so on. All of that can now be done very quickly and efficiently by agents. This really elevates the role, and allows procurement to become a partner to the business.”
Velte adds: “When you talk about talent shortage, it’s also that shift in the mindset we’re going through right now. The expertise is changing, and we want to be able to bring in talented people with that technology flare. When we look at the next generation of leaders coming out of university and college, they’re AI enabled already. They’re expecting AI to be available to them to accelerate their development, career goals, and ambitions.”
Making sense of the landscape
As DPW New York 2025 unfolded around us, the discussion inevitably turned to the ways in which DPW helps procurement make sense of the AI landscape. Pactum AI is actually a perfect example of how useful DPW is. Only four years ago, the business was a startup, and won a pitch contest at DPW Amsterdam. “That catapulted the business, and got us a lot of visibility,” says Strydom. “It’s a great place for visibility with practitioners, investors, and partners.”
Again, it comes back to people. Being able to meet them in real life, communicate face-to-face, and learn from one another. “It’s about reconnecting with a lot of our partners,” says Velte. “But it’s also about seeing what is out there on the forefront that’s becoming available. It’s an amazing opportunity for us to really benchmark ourselves, while also getting a glimpse of what’s coming around the corner.”
From automating decisions to redefining procurement talent, AlixPartners lays out why risk-takers lead the way.
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The use of artificial intelligence (AI) in procurement is gaining traction with many organisations already looking at how the technology can improve processes. However, there’s scope to go beyond efficiency and instead focus on transforming value delivery.
At DPW New York, we spoke to Amit Mahajan and Aaron Addicoat from AlixPartners, a management consultancy firm doing things a little differently. The organisation is advising its clients on how to implement AI to drive value, but it’s also using AI internally, too.
“AlixPartners has a unique business model,” explains Addicoat. “We have a very senior model, very few junior resources. So now you imagine taking people with 10 or 15 years experience and now you equip them with AI… For us, it’s a huge unlock.”
This is about more than just productivity gains. AlixPartners focuses on using AI to transform the way procurement teams work, while crucially, maintaining the human touch.
How procurement professionals are using AI
With the support of technology, it’s possible to shift procurement from a cost-saving exercise to a potential revenue driver. Procurement teams are already looking for these opportunities, as Mahajan explains. “They’re starting to think about new ways of doing things,” he says. “It’s not just automation, but asking how do I leapfrog and do something differently?”
There are plenty of use cases where AI is helping with automation. This is a great place to start as it frees up human workers to do more valuable jobs that need a personal touch. “I have a client who’s using AI every day,” says Addicoat. “This allows them to review documents and contracts rapidly, to find key clauses and termination dates. They’re also using it in spend control processes to identify which things need to be reviewed more thoroughly.”
Many organisations are also using AI agentically to create their own bots. This gives teams a more accessible way to review information. “One example is a client who’s using AI for their business to help with acronyms,” says Addicoat. “They built it as an acronym tool to help break down the language barrier between different functions using different terms. This led to better engagement.”
This empowers employees across an organisation to be more autonomous while still getting the full picture. Agentic AI, especially, allows them to interact with information in a way that previously would’ve required specialist technical knowledge. Now, it’s possible to query information within a contract directly.
“It’s about using agents and AI to look at anomalies within your procurement contracts,” explains Mahajan, “and be able to help the category analysts, the category specialists, and others to get more of those insights.”
While generative AI might be a hot topic, it’s not the only way to use the technology. In combining several sources of data and using AI to spot trends, it’s possible to create workflows tailored to the current environment. Addicoat explains: “We take a series of data inputs, such as weather patterns, lead times, contractual terms, inventory, and forecast. Then the AI generates the purchase order, queues it for review, and upon approval, places the order.”
This can help an organisation to place orders with the right supplier in the most timely fashion to avoid delays, and optimise for cost, for example. This fully automates the end-to-end process, using AI to interpret those important data signals.
While this is useful for procurement teams, it’s only the start. “Using AI in this way is really cool,” says Addicoat, “but what I found most fascinating is that you’re building a data model, and with AI layered into it, that over time can tell you how to optimise itself.”
This has huge implications for procurement teams looking to save money and drive revenue. “For example, it could tell us the commodity price at a certain point in time was low,” says Addicoat, “but because inventory capacity to hold resin was maxed out the client could only buy so much at that low price. So now investing in a new storage unit at a cost of a few hundred thousand dollars could, under the same scenario in the future, save millions of dollars..Data quality challenges
A roadblock that can stop procurement teams from fully embracing AI is a lack of quality data. With so many sources of information, often including paper-based documents, some might think it’s difficult to get the data AI needs to be truly useful.
“Don’t wait for everything to be perfect before you get started,” says Addicoat.
This is a sentiment echoed by Mahajan: “Use AI to solve your data problem before solving your business problems.”
This requires a mindset shift. While AI can help cleanse, enrich, and structure existing unstructured data, it’s important to take the right approach. Shift from asking ‘what can we do with our data?’ to ‘what value do we need to create?’ and work backwards from there.
With this approach, the questions are less about the data and more about the business problem. This then allows you to use AI to work with the information you have to help answer those questions.
“Start with the value proposition in mind and work backwards,” explains Addicoat. “You can get data from anywhere — it has to serve a purpose.”
Bringing back the human touch
AI can free up procurement teams to focus on tasks that need more nuance and expertise. Using technology to automate workflows and make information more accessible has a huge impact on employee productivity. “It’s fundamentally transforming the way they work, the amount of work they can do, and the type of work they’re able to do,” says Addicoat.
There’s always the worry that with any new technology, the human element will be forgotten. “With every new advancement that comes in,” says Mahajan, “whether that was a steam engine or when computers came along, everybody wondered what they were going to do. But as humans, we always find ways to start doing higher-level work.”
This means that many professionals will find new ways of doing things. “Imagine all the mundane tasks you have to do in your daily job now,” Addicoat continues. “With these new ways of working, imagine the speed with which you can turn an idea into something real. All that time you free up allows you to go talk to people and build relationships that mean something.”
On the other side of things, the sheer volume of AI-generated content out there is going to drive people towards those more meaningful interactions. “You don’t know what to trust and what to believe anymore,” Addicoat says. “That’s going to lead to a resurgence in face-to-face content, being at the office, and being at events.”
AI’s impact on procurement talent
The talent landscape is changing. With technology playing a larger part than ever before, organisations don’t just need procurement professionals, they need adaptable, tech-savvy people. The nature of the job means that those in procurement need a wide range of skills.
“We do everything,” says Addicoat, “legal, operations, supply chain, negotiation, analytics. Procurement professionals are generalists.”
Tech plays into every element of that skillset, which means tech skills are becoming even more important for candidates applying for procurement roles. “Nobody goes to college thinking they’ll be a procurement professional,” says Mahajan, “but with AI and tech, that’s changing.”
With procurement often seen as a proving ground for leadership, embedding these tech-minded generalists could have a huge impact on the future. “We have a shortage of talent,” explains Addicoat. “But with more and more CEOs and COOs coming from procurement, that speaks volumes to what procurement does and the value it brings, as well as what the future holds.”
At AlixPartners, the passion for procurement is very clear with Addicoat saying: “There are only two kinds of people in the world: those who love procurement and those who don’t know it yet.”
Change is coming
With AI of all forms steadily gaining traction, procurement could change dramatically in the coming years. It’s the organisations that are willing to take risks and embrace change that will come out on top.
“AI has the potential to disrupt the whole management consulting world,” says Mahajan. “Firms focused on transformation will thrive.”
With AI’s capabilities increasing rapidly, it’s difficult to predict what comes next. However, adaptability is key. “Hold onto your hat. In a year and a half, the world’s going to look very different,” concludes Addicoat.
AI is already transforming procurement, but meaningful value depends on more than just tools. At Beroe, that starts with aligning AI to real business problems
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As AI continues to dominate conference stages and boardroom discussions, the pressure to use it is everywhere. As this technology becomes further embedded in enterprise strategy, many organisations are still grappling with how to apply it in a way that delivers real, measurable value.
Rather than focusing on AI for the sake of innovation, the question now is how to align new tools with real business problems. That means looking beyond dashboards and pilots to deploy AI where it can simplify decision-making and improve processes.
At Beroe, this principle is central to how AI solutions are developed, deployed, and scaled. As the company behind the world’s leading procurement intelligence platform, Beroe provides real-time market data, cost analysis, and supplier risk assessments, empowering thousands of organisations globally to streamline operations and mitigate risks. Its latest advances in autonomous negotiation, supplier discovery, and predictive analytics show what it means to align AI with business objectives.
Speaking with Prerna Dhawan, Chief Product Officer at Beroe, during this year’s DPW New York conference, the discussion explored how procurement leaders can move beyond hype and start unlocking the full potential of AI.
Misalignment with business needs
There are plenty of real-world examples of how AI can improve efficiency within a business, from automating manual tasks like invoice processing to identifying new suppliers based on complex sourcing criteria. Accessing this technology is easier than ever with a wide range of tools available to procurement professionals. It can be tempting to jump on the bandwagon and integrate AI across every area of an organisation, but success requires a more nuanced approach.
The key is to ask the right questions, Dhawan explains: “We talk about all the latest and greatest technology out there, but what does it mean in practical terms? We need to ask, ‘How can I apply it today in the work I am doing as a head of product or as a procurement professional?’”
The allure of generative AI is especially strong, but business leaders should ask whether that’s the right solution for their needs. As with any decision, it’s important to consider the business problem. “It starts with a little bit of knowledge about what you’re looking for,” says Dhawan. “What are some of your biggest challenges, and which of those challenges could AI technology solve?”
Matching the right tool to the job
Once an organisation has identified a specific problem, it’s possible to find the AI solution that fits. While generative AI gets a lot of attention, other AI technologies and machine learning based systems might be more appropriate.
In some cases, prescriptive, rule-based, or predictive AI could be a better choice to solve a problem without the need for a large language model. For example, forecasting commodity prices doesn’t require generative AI, just strong, contextual machine learning.
“We are looking at AI across two dimensions,” says Dhawan. “Firstly, what is our offering to customers, in terms of procurement intelligence and autonomous negotiation technology. Second, we are looking at AI internally. Let’s say in product development, how do we use the latest AI solutions to accelerate our product development cycles so we can release new modules and capabilities more quickly.”
Regardless of the type of tool chosen, it should cover a high-impact use case. Integrating AI to solve a problem that only surfaces for a small group of people a couple of times a year won’t have a great return on investment. Instead, look for regularly occurring problems that, if fixed, could have a huge impact on productivity or quality.
Reducing the cognitive load
We’re already bombarded by information, and the use of AI to add to this doesn’t make sense. “I don’t need another dashboard in my life,” says Dhawan.
When implemented correctly, AI can make data more accessible while reducing cognitive load for users. The result is increased productivity and faster decision-making.
“I think the power of AI is to simplify access to data. This is why ChatGPT has been a success: it democratises access to information. That’s what our B2B technology world is waiting for. It gives me something simple that allows me to talk to my data. Then I can focus on what insights I need to make a decision or take action.”
For most B2B users, the key is intelligent simplification. Look for ways to simplify access to data through agent AI tools and conversational interfaces. This brings the focus back to action rather than dashboards.
Inside Beroe
While many procurement teams are still exploring AI’s potential, Beroe has already embedded it across both its platform and internal operations. The company, founded in 2006, provides procurement intelligence to thousands of organisations worldwide. Its platform delivers the critical data that professionals need to make informed sourcing decisions, from commodity prices and risk indicators to ESG scores and supplier intelligence.
“We provide all data that procurement needs for decision making, whether it’s cost data, risk data, ESG data or price data,” says Dhawan. “Our reimagination of the future is not just giving access to more data but creating that layer of recommendations that help you make decisions at speed and scale.”
One of the clearest examples of this in action is Beroe’s new ‘autonomous negotiations’ platform resulting from its recent acquisition of negotiation technology business, nnamu. Delivering a significant evolution in the procurement technology landscape the platform enhances the foundational elements of AI and game theory with Beroe’s industry-leading market intelligence and, according to Dhawan, it’s being deployed successfully in live sourcing scenarios.
“This is a technology that is being used for multilateral negotiations,” Dhawan explained. “It’s no longer just a POC or prototype, it’s live and being used at scale.” These new tools reflect Beroe’s core mission: to help procurement professionals minimise surprises and maximise margins.
Crucially, Beroe isn’t waiting for perfect data to apply these technologies. Instead, the company is using AI to work with what’s available — cleansing, interpreting, and extracting value from both structured and unstructured sources.
“You can use AI for cleansing data – even paper contracts,” Dhawan says. “Historically, we thought data had to be structured. But now, with vision models and image analytics, that’s no longer the case.”
Rather than striving for 100% accuracy before taking action, Beroe embraces a more agile mindset that balances speed and precision.
Is mindset holding procurement back?
The technology is ready. The use cases are proven. So why do so many procurement teams still hesitate to embrace AI? “There’s this subconscious fear that I think is a barrier to adoption,” she said. “And to some extent, it’s to do with our friends in Hollywood.”
There’s the myth that AI is a job-threatening black box, especially in industries where trust and experience are the backbone of good decision-making. For procurement, where professional judgement and business context are critical, the idea of handing over tasks to AI can feel risky.
But Dhawan believes this fear is misplaced. At Beroe, AI isn’t replacing procurement professionals, it’s augmenting them. Whether it’s surfacing new suppliers, automating elements of negotiation, or flagging risks earlier in the sourcing cycle, the aim is to enhance human decision-making. She says: “I think with the new kinds of AI technology that’s available to us, it is an opportunity for us in B2B tech to embrace more human-centred design with higher focus on UX.”
Looking ahead
Looking ahead to 2026 and beyond, Dhawan sees procurement evolving into a more personalised and responsive function – one where AI plays a critical role in both strategy and execution.
“We see hyper-personalisation coming, both in supplier relationships and internal stakeholder engagement,” she explains. “AI will be at the centre of that.”
Rather than one-size-fits-all sourcing strategies, AI will enable procurement teams to tailor their approaches to specific business units, categories, or even individual suppliers. This means smarter segmentation, more relevant insights, and stronger commercial outcomes.
Another key shift is the growing ability to connect macro events, such as geopolitical shocks or regulatory changes, with micro actions inside the business. AI can help procurement teams identify these signals earlier, respond faster, and still align with long-term goals such as cost efficiency or sustainability.
“It’s about balancing your fire-fighting reactions to market events with your long term goals and strategy,” says Dhawan. “Procurement needs visibility and flexibility at the same time.”
Beroe is already moving in this direction. Alongside its growing AI capabilities, the company is refining how it delivers intelligence, building agents and recommendation layers that not only inform decisions, but also help teams take action on them. Whether that means automating routine negotiations or proactively flagging supply risks, Beroe is evolving to meet the needs of a procurement function that’s more dynamic than ever.
As Dhawan points out, the goal isn’t to overwhelm teams with more tools, it’s to make their lives easier. “It’s about reducing complexity and giving procurement professionals confidence in what to do next,” she concludes.
For many procurement leaders, AI still feels like a long-term ambition. But the solutions are already here, and through companies like Beroe, they’re already in use. The challenge now is not whether AI can deliver value. It’s whether teams are ready to adopt the mindset and cultural shift that will allow them to unlock that value.
Jonathan Jackman, Regional VP at Kinaxis, dives into how AI is reshaping supply chain planning.
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Artificial intelligence (AI) is often seen as a threat to jobs, with a recent TUC poll showing half of UK adults worry that AI will take their job. When it comes to the supply chain sector, AI is shaping up to be a powerful tool that empowers planners to take on more creative, fulfilling roles.
The prospect of AI-enabled supply chain planning is an exciting one for both professionals and businesses. Scaling operations without the need to massively increase headcount is a major selling point for any enterprise, while for professionals, the prospect of removing the repetitive, mundane and manual processes that restrict and slow effective planning is surely a promising one.
Far from job elimination, AI is a major upgrade for supply chain workers in a number of different ways. We’re entering a new era of increasingly autonomous AI systems, which will elevate supply chain planning to new heights. So, how exactly will the day-to-day role of the planner evolve as we go further into the AI era?
Humans still in control
First, it’s important to dispel a myth: the supply chains of the future will not be “driverless”. Many believe that AI, and particularly agentic AI, has the potential to run supply chains on autopilot. This is far from reality: while AI can surface insights, automate tasks and even take action in a crisis, it will always need to be augmented by a human to fully interpret the nuances of the real-world.
This human oversight is a crucial failsafe. There will be many times where AI flags potential shortages and proposes the best way to respond, but it will only ever be as good as the insights it is fed and the guidance given by human. For example, what if it is missing a crucial bit of real-time information about an upcoming election which could lead to disruptive trade challenges? While the algorithms. may be great at crunching the numbers and making recommendations, only a human planner can assess the full context surrounding a decision before deciding action.
The future of supply chain planning isn’t AI instead of humans, it will be AI and humans. In the AI era, supply chain professionals will be the orchestrators, steering AI systems and validating recommendations with important human insights and context.
Each planner is likely to have fleets of AI agents beneath them, acting as demand forecasters, inventory optimisers and scenario simulators – feeding information back to the supply chain professionals to empower them to make the best decisions based on the maximum amount of data analysis, all done in real time.
Planners unleashed
With AI handling the mundane and routine supply chain tasks, planners will be unleashed to focus on the creative, strategic elements of the job that machines simply cannot do: building relationships, working with partners, building and selling strategy, and, of course, managing AI agents.
Consider negotiations with partners, for example, AI won’t be able to compete with a human. It will, though, supply planners with the data they need to enter those discussions armed with deeper insights than ever before, empowering them to work more effectively.
Planners will also play a critical role in shaping the very AI tools they use – training models, curating data, and ensuring outputs reflect reality. Over time, this human feedback loop will make the technology even more valuable.
One key evolutionary step we are starting to see is the emergence of Autonomous Concurrent Orchestration. Currently, many vendors focus on agents automating existing siloed processes, but in the future, we will see more agents that synchronise planning decisions across functions – procurement, logistics, manufacturing – in real time. Agent-to-agent communication will break down silos and speed up problem solving and decision making, easing the burden on supply chain professionals.
Augmenting, not replacing
Perhaps artificial intelligence is the wrong phrase when it comes to supply chains Instead, the industry should be discussing augmented intelligence, where machines unlock insights and real-time decision making that simply wasn’t possible when tasks relied on manual processes.
For planners, the AI era promises exciting change: embracing new tools and evolving alongside this technology is not only good for business, but good for the careers of supply chain professionals.
We sat down with Abe Eshkenazi, CEO of ASCM, to dig into the organisation’s focus points, and how CHAINge is addressing supply chain’s needs
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Tell me a bit about your background, and how you got into supply chain.
Early in my career, I spent quite a bit of time in operations and materials management. We didn’t call it supply chain back in the day – it went by a number of different terms. Not surprisingly, given my role within ASCM, I worked closely with supply chain professionals, not only to elevate the role of the supply chain professional, but to understand the impact that supply chain has on business and society.
At ASCM, we’re focused on not only supporting that competent, capable individual, but ensuring that organisations are responsible in terms of using supply chain to really enable consumers and patients to get what they need at a reasonable price and reasonable time. This is what supply chain is about. My background combines that business management education and deep engagement with supply chain professionals. This gives me a strong appreciation for not only their challenges, but the opportunities the field faces today.
Tell me about the planning for CHAINge NA this year. What were you looking to achieve when putting ideas together?
Today, supply chain professionals are trying to balance efficiency with geographic diversity and political resilience. They’re trying to put those things together and identify what would make an individual do their job better and exchange that information with others. So our planning is centered around a key theme, which is: how do we equip supply chain professionals for what’s next?
The systems that we built for speed and cost optimisation are under stress right now. They’re struggling under the weight of complexity, volatility, consumer demands, and all the disruptions that we’re facing today. We’re being called today to rethink not only how quickly and cheaply we can move things and get them to the consumer, but how responsibly, transparently, and resiliently we can operate today. Our hope is that the engagement part of the event enables individuals to exchange information and walk away with insights and actionable strategies that can be taken back to their organisations and implemented. We’re truly looking for that engagement from the attendees. This is an event for the attendees, by the attendees.
It’s also about making the contact and relationships that we all depend on. We’re all seeking opportunities and examples of organisations that have done it better or have responded easier to the challenges that we’re facing today. This provides individuals with an opportunity to engage. We had an opportunity to do this at our European event, after which attendees overwhelmingly indicated that the engagement part – the opportunity to exchange information learned from each other – was a key element of the event itself. We’re trying to replicate that, but with the amount of issues that the US is facing versus the rest of the world, the topics are going to be a little bit different here.
What are the core topics covered at CHAINge NA that you think are most helpful for supply chain professionals?
We need to take a temperature of the current environment, and not surprisingly, we structure the event around several core themes that we’re all facing today. First, resilient and agile supply chains. The adaptability that’s required today is unlike any time that we’ve ever faced. We’ve had disruptions before, and we’ve responded as an industry. Today, we’re continuing to respond, but the pressures on these individuals due to day-to-day uncertainty has created a very different environment.
The second core topic is emerging technologies. As the focus on resiliency and agility becomes much more critical, there are only a few ways to gather the data necessary to enable organisations to make informed decisions. Not surprisingly, AI, digital twins, and a whole host of scenario planning technology tools are a focus for a lot of organisations today. Digital transformation is happening in almost every organisation to shore up their visibility, their transparency, and their traceability.
Also, advancing sustainability practices. We can’t forget that at the end of the day, we still need to be sustainable as an industry. This has been a huge focus within supply chain. It’s taken a little bit of a backseat in the current environment, but organisations are still focused on ensuring that they are sustainable and ethical in their business practices. Lastly, no discussion can be had without understanding what the talent availability is, what their capabilities are, and whether we are ensuring that we do have the right talent.
How important is collaboration (accelerated by things like CHAINge) in supply chain, especially as the landscape becomes more complex?
In today’s environment, as we focus on visibility and on connecting all parts of our supply chain end-to-end, we understand the demand signals clearly so that we can address them appropriately. Collaboration is no longer optional – it’s essential. No single individual organisation can solve today’s challenges on their own, whether it’s navigating geopolitical tensions, managing risk in a global network, or even driving sustainability. The solutions demand cross-functional and industry collaboration. It used to be that the Chief Supply Chain Officer in the back room was only called upon when there was a crisis. Well, I think we’ve got enough crises today that we need to push that individual into the front office.
First, we need to enable them to use their voice at the table to advocate for appropriate supply chain practices, but also in combination with a wide range of other roles. These are the teams that are now addressing these issues. It’s no longer just a supply chain issue; it’s an organisational issue. It’s a societal issue that we now need to address, and there’s only one way to address that; that’s through collaboration within the organisation, as well as with your partners, your vendors, and your vendor’s vendor. This is a very dynamic environment today, and enabling organisations to have that complete visibility and connectivity is critical.
There’s been a lot of talk about a shortage of talent across supply chain; how big an issue is this, from your perspective? And how can it be overcome?
From our perspective, it’s one of the defining issues of our time. As supply chain has moved from the back office to the boardroom, so has the demand for skilled professionals. More often than not, supply chain people come out of finance or engineering. In today’s environment – a very diverse workforce – digital natives are coming into the workforce. They’re not only adaptable, but very comfortable with modern technology. It’s a little bit of a reverse from the leadership that we have in supply chain today, that may still be using that Excel spreadsheet on their systems. Supply chain has the demand for those skilled individuals.
To address this, we’re focused on a number of things. First, expanding the awareness of supply chain as a rewarding career path, which our salary and satisfaction surveys confirm. Secondly, talking openly about investing in ongoing professional development. We’ve been to a lot of conferences and whether we’re talking about AI, sustainability, or disruptions, at the end of the discussion, it always comes down to people. We should be talking about the people at the beginning of the discussion as opposed to the end of it. We need to create that opportunity for individuals to see that they can not only make a difference, but that their voice is heard and followed on within their organisation. That’s what we’re preparing supply chain professionals for.
We need to provide an inclusive workplace that attracts and retains that diverse talent. As I indicated before, individuals coming into the workforce are digital natives. They’re very adept at AI and they’re more than willing to jump in with the technology. We need to enable them with problem solving, critical thinking, and experience on the job. I couldn’t be more excited about the individuals coming into the workforce today and the focus, and they’re able to change the world through supply chain.
How can supply chain professionals approach the challenge of ever-changing regulatory requirements?
Financial markets and supply chains do not like uncertainty. We like certain demand signals so we can ensure that our supplies are appropriately managed. Supply chain professionals need to have robust systems to monitor changes and provide that data, or the regulatory information and policy individuals reporting become significant. Among the concerns that we have is that more often than not, it’s become regulatory or policy and it becomes a checklist. Part of that concern is whether we’re really focused on really making a change, or focused just on those compliance checklists that often drive down to minimum effect.
Today, technology helps, but so does developing a culture of compliance and resiliency. Once again, collaboration matters, sharing best practices across industries, and enabling individuals to understand that there are ways to respond to the regulatory and the policy changes.
What are some of the most exciting innovations happening in supply chain today?
I think the combination of the people and technology is what’s going to make an exponential difference. On the technology side, tools like advanced analytics, AI, and digital twins are transforming how we forecast, manage risk, and build resiliency. The real innovation is combining cutting edge technology with a highly skilled, adaptable workforce. I heard a fantastic quote the other day: ‘AI is not going to take your job; an individual using AI is going to take your job’. That’s where the focus is right now – enabling individuals to use technology to really leverage that and enable organisations to be much more responsive and agile, as they address demands.
The two-day event (9th-10th September) offers attendees all the tools they need to improve their resilience and adaptability.
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Be the CHAINge you want to see in supply chain, and join fellow supply chain professionals at CHAINge North America. Located at the Greater Columbus Convention Center, in the heart of Columbus, Ohio, the two-day event (9th-10th September) offers attendees all the tools they need to improve their resilience and adaptability.
SupplyChain Strategy readers receive an exclusive $200 discount when registering for CHAINge North America, by using code SCS200
The event gives attendees access to a rich agenda of learning opportunities, covering topics such as:
Supply chain digitalisation
Data visibility
Risk and resilience
Future-proofing supply chains
Woman in supply chain
Harnessing AI
And much more. Those attending CHAINge North America join their peers for two days of interactive learning, lively discussion, and novel ideas to drive change in their own supply chain.
All supply chain professionals and executives are welcome to become part of the movement and discover the latest in supply chain innovation.
Register today and use our exclusive discount code: SCS200
As well as eye-opening talks, CHAINge North America attendees gain access to:
10-minute innovation tech showcases
Educational breakout sessions
Use case theatres
Industry Q&A
Join your fellow professionals on the 9th and 10th of September for this industry-leading event. Register now and use code SCS200 for $200 off the cost.
Industry collaboration for freight decarbonisation pilot proves sustainability and profitability can go hand-in-hand as empty miles drop.
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An innovative freight decarbonisation initiative in South West England has achieved a significant milestone, with 65 loads successfully matched, generating over £68,000 in revenue for local hauliers and preventing 7,915 kg of CO2 emissions through reduced empty running, according to new data from TEG.
The collaborative project, led by Peninsula Transport and Western Gateway STBs with TEG’s Haulage Exchange platform, has demonstrated measurable environmental and economic benefits since its expansion. The initiative now includes 11 participating haulage companies across the region, with loads posted by companies for subcontracting reaching 1,906.
Key achievements from the updated pilot programme include:
Environmentalimpact: 7,915 kg of CO2 emissions prevented through 9,195 miles of optimised return journeys
Economicbenefit: Total revenue of over £68,000 generated for participating local hauliers
Operationalefficiency: 65 loads successfully allocated to vehicles that would otherwise have travelled empty
Regionalcoverage: Load matching across multiple regions, with the highest activity from Greater London (10 loads), South East (15 loads), and South West (23 loads)
The data reveals strong engagement from participating companies, with businesses joining throughout 2024 and demonstrating sustained activity. Bristol-based operators feature prominently amongst the most active participants, highlighting the project’s success in building a regional network of collaborative hauliers.
The most active freight lanes include routes from the East Midlands to Exeter (129 loads), West Midlands to Exeter (128 loads), and North East to Truro (115 loads), demonstrating how the platform is successfully connecting return journey opportunities across major UK freight corridors.
Lyall Cresswell, founder & CEO of TEG, said: “These results demonstrate the real-world impact that smart logistics technology can have on both environmental and business outcomes. By giving local hauliers access to our platform, we’re not just reducing empty miles – we’re creating tangible economic value while supporting the region’s sustainability goals. The fact that we’ve generated over £68,000 for local businesses whilst preventing nearly 8 tonnes of CO2 emissions shows how collaboration and technology can drive meaningful change.”
Cllr John Stephens, Peninsula Transport, said:“The pilot project with TEG is an example of the South West Freight Strategy in action. By cutting carbon, boosting the regional economy, and making better use of our existing freight capacity we’re pleased to be supporting cleaner, more efficient and better connected transport across the region.”
Cllr Chris Willmore, Western Gateway STB, said: “We are pleased to support the important initiative as part of our work to decarbonise freight with STB funding and guidance. Freight is so important to our economy, but is often overlooked. This pilot reduces the number of miles HGVs travel empty, which without the initiative often contribute to climate change and cost businesses money. By working collaboratively with our neighbouring STB, Peninsula Transport, we can maximise our impact on the freight industry and see our South West Freight Strategy come to life”.
The project addresses the critical industry challenge of empty running, which accounts for approximately 30% of all haulage vehicle miles according to Department for Transport data. By providing participating hauliers with access to load-matching technology through Haulage Exchange, the initiative enables businesses to find profitable return loads, improving vehicle utilisation whilst reducing environmental impact.
Vehicle types participating in the programme range from 7.5-tonne trucks to 13.6-metre articulated lorries, with 7.5-tonne vehicles showing particularly strong engagement across multiple regions.
Frank Baldrighi, Business Development Manager at Getac, explains why digital transformation across the supply chain overdue.
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Digital transformation is driving significant change across the global supply chain, leading to the adoption of new, innovative business models and cutting-edge technologies. The ability to adapt to these changes is crucial for companies aiming to remain competitive and deliver exceptional value to their customers.
Technology plays a pivotal role in accelerating change, helping companies to automate operations and enhance productivity. The modern workplace is evolving, with a growing emphasis on flexibility, sustainability, and employee well-being. Companies must navigate the challenges of integrating new systems and processes, a reality that requires a cultural shift towards innovation, experimentation, and continuous learning.
The benefits of embracing change are substantial, including improved quality, increased efficiency, and enhanced customer experiences. To successfully manage change, companies must measure its impact using data and insights to inform decision-making. Leadership plays a critical role, with a clear vision and strategy essential for success. By fostering a culture of adaptability and continuous improvement, companies can thrive in the dynamic landscape of digital transformation.
The case for (rebooting) digital transformation
Since the early days of the COVID-19 pandemic, industry has learnt several key lessons:
Employees are critical talent and need to be deployed strategically
Asset-based industries like transport & logistics can benefit from remote monitoring and operation
These same industries also need the ability to make decisions in the field, on the edge
As organisations embrace digital transformation, many face significant challenges stemming from outdated technology and processes, which can hinder their ability to initiate this critical transformation effectively.
The goal of digital transformation is to move businesses along a customised path, from adding automation process steps to fully autonomous operations. Along the way, enterprises will pass various milestones that reduce the fraction of human involvement and orchestration into the process: from done by humans, through done with humans, to done for humans.
The key forasset-driven industries is to begin with the desired goals in mind, and establish key performance indicators (KPIs) to measure progress toward those goals. The work of digital transformation involves breaking down business operations into manageable processes that can be orchestrated or automated with the help of technology.
Technology drivers of digital transformation
Data, the currency of digital transformation, enables several technologies to build new capabilities and deliver enterprises’ desired results.
Some of the technologies that can propel digital transformation include:
Artificial intelligence and machine learning, which enable autonomous decision-making at the data source.
Robotics, which performs routine, monotonous tasks independently or in collaboration with workers.
Extended reality-XR (augmented reality-AR / virtual reality-VR / mixed reality/MR), which empowers workers to collaborate remotely without being physically on site.
Internet of Things (IoT) / Industrial Internet of Things (IIoT), which include sensors embedded in assets that transmit data about the health of machines. This data enables predictive maintenance to maximise uptime, asset life, and capital payback.
Digital twins, a simulation of all physical assets and their interdependencies, enable enterprises to proactively predict system functions before changes are made.
Cloud computing, which enables infinite computing scale while increasing resiliency, and security.
Selecting which of these technologies best fits depends on the digital maturity of the company in question and the KPIs they intend to measure.
Digital transformation isn’t always smooth sailing
According to a 2020McKinsey research report, 70% of enterprises who pursue digital transformation find their momentum stalls at some point. It is worth understanding the reasons – e.g cultural or scalability issues – causing the slowdown because payoffs for successful transformation can be impressive; leading to more efficient operations, with enterprises enjoying autonomy beyond their operations. An entire ecosystem with data transparency functions more smoothly as inefficiencies are easier to pinpoint and fix.
Businesses must also watch market trends and shifts in consumer behaviour to adapt and thrive in the evolving landscape. The 2024 update to McKinsey’s tech trends focused on generative AI, coupling with electrification and renewables in terms of interest and investment. Gen AI is the next step in digital transformation, with the potential to enhance nearly all performance metrics.
Rugged mobile devices (especially AI-capable) contribute an invaluable benefit to the digital ecosystem. They connect workers to vital information necessary to keep operations running in harsh environments, often where and when workers need the data most.
Employees can use a rugged mobile device forasset management software or enterprise resource planning systems to troubleshoot problems quickly and efficiently whenever worker intervention is called for. Using rugged mobile devices also allows for the easier digitised recording of processes, so the enterprise always has a record related to every machine.
Limitless potential
Looking to leverage advanced technologies, organisations throughout the supply chain are taking a careful view of business operational workflows and finding ways to improve the bottom line. Expect AI-fuelled digital transformation to quickly become a mindset for companies as they move toward autonomy in their digital transformation. Rugged mobile devices will be essential today and even more so tomorrow to future-proof technology fleets. Their secure and open architecture enables enterprises to use it as a communications platform now and into the future.
SupplyChain Strategy attended July’s Exiger Executive Forum to hear from the best and the brightest in the industry.
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Supply chain resilience is one of the most pressing concerns of modern business, whether executives are aware of it or not. That was the central theme of the Exiger Executive Forum held on July 23rd 2025. Titled Supply Chain Sovereignty in a Fractured World: Winning the AI and Geopolitical Race for Resilience, the event brought together business analysts, CEOs, supply chain and procurement executives, academics, and politicians for an open discussion around supply chain sovereignty and the urgent need to secure supply chains across myriad industries and territories.
As geopolitical events, trade wars, and threats to globalised networks threaten to destabilise global and local supply chains, the case for supply chain sovereignty, which is an organisation’s ability to control its supply chain and minimise dependence on external suppliers, becomes increasingly stark. However, a myriad of stakeholders must come together to enable organisations and nations to gain independent control of supply chains, and collaboration between industry, government, and academia is essential.
Three guest speakers joined Maria Villablanca, CEO and Co-Founder of Future Insights Network, each representing voices from within politics, business, and academia: Tobias Ellwood, former UK Minister and Chair of the Defence Select Committee; Koray Köse, CEO and Chief Analyst of Köse Advisory, Senior Fellow at GlobSEC Geotech Centre, and Board Member of Slave-Free Alliance; and Karsten Machholz, Professor for Supply Chain Management and Strategic Procurement at University of Applied Sciences, Wuerzburg-Schweinfurt.
The discussion exemplified the discordancy of priorities and perspectives among senior voices from all angles regarding security, economics, policies all impacting value chains, albeit with a shared willingness to engage in secure, competitive, ethical and innovative supply chains, fuelling businesses and economies through heightened volatility in a fractured world that is recalibrating through the era of reglobalisation.
Supply chain sovereignty: Bridging political understanding, and urgency
“It is a dangerous world that we’re entering,” Ellwood warned. “If I ask you ‘Do you think the world will be safer or more dangerous in five years from now?’, I think we’d all agree in which direction it’s going. We have to then ask ourselves how we prepare for that.” To that end, Ellwood believes an increased focus on supply chain sovereignty is both an economic and military imperative.
For Ellwood, the central issue is limited understanding, both public and private, around the urgency presented by the current risk and threat environments. Through the combination of limited knowledge around supply chain complexity and an election cycle-focused impetus to enact vote-winning policies, he believes the political class lacks both the nous and urgency to prioritise supply chain sovereignty.
“After 20 years in politics, I can safely say that many politicians are simply unaware of what’s coming over the hill,” said Ellwood. “The tide took me out to the last general election, and so I went from helping to craft and nudge policy and encourage Britain to move forward to then scrutinising what we were doing, not just at home but internationally. Now that I’m outside of politics, I continue doing those same things.”
The necessity for political engagement is not lost on Köse, who through his own experiences of researching, advising and leading supply chain organisations, has been advocating for supply chain resilience as a top line driver for economies and companies, has equally encountered the depth of that disconnect.
“At an early point I realised that geopolitics is the key denominator for all value chains and all of us in this context,” he said, adding that work is overdue but starting to be underway to bridge this gap. “The London Defence Conference, as one critical congregation, is key for you all folks to be aware of. Not only because of what they do in terms of bringing the politicians into one room to debate some of the most fierce topics of the day, but it’s all about convergence. Bringing in supply chain leaders, policy makers and technology folks with a direct approach to debate.”
Villablanca noted that Ellwood’s presence was indicative of a gradually shifting tide, however. “It’s not lost on me that here we are in this panel, talking about supply chain, and we have a former politician with us,” she said. “That is very different to some of my earliest supply chain conferences where we didn’t see that, so it’s a sign of the times. Set the scene for us around why you’re here and why it’s important to discuss the geopolitical situation vis-a-vis supply chain today.”
“I spent most of my time in politics trying to strategise, trying to go four or five chess moves ahead, and I found I was on my own,” Ellwood replied. “Politicians operate for the day, for the here and now, the election cycle; the news cycle is what keeps them busy. They’re not thinking about these things and yet the world we’re now seeing in everything… everything is being weaponised because that is the change in the character of conflict.
“But today, from my perspective, I see the world splintering into two spheres of hugely competing influences. If you look at the number of countries that have signed up to China’s One Belt One Road initiative, you’ll see that many of them are either opting or hedging their bets as to where things go.
“To make matters worse, our exemplifiers of what democracy looks like aren’t in a good place. We see what’s going on in America, British politics and so on, and Europe and America are not on the same page. We aren’t promoting global law in the sense that we had a sense of determination that we had when organisations were set up in 1945. Other nations are getting together and realising that there’s an opportunity to exploit the wobbliness of our world order and do things their own way.
“That’s where the mechanisation of just about anything comes in to cause us economic harm, to sow political discord from afar. It’s very easy to do and becoming easier simply because of the openness of our society. It means, from a rudimentary perspective, anything you do can be weaponised against you.”
“It’s very easy, from afar, to then limit your supply chains and thereby limit your capabilities. There are countries that specialise in sowing economic discord from afar. They understand and learn and know supply chains better than we do, and they can work out which missing pieces will cause our assembly lines to grind to a halt.”
That lack of preparedness, he says, is an impediment to putting the nation on a footing that could support a war effort on the scale of the World Wars.
He continued: “There’s also the prospect of preparing for war, which means that we are suddenly spending more money on defence. Our ability to switch on the supply chain levers to support military capability is not there. This is why companies that have no connection with the defence world need to think about the services they provide that might have a military bearing. In five years time, you may be called upon to do exactly that.
“That is the mindset we now need to get into. Security and economy are one and the same now, and that’s what we need to learn.”
AI, foresight, and risk strategy
The conversation then shifted to the business side, where securing critical supply chains powering key technologies such as AI, defence and security, biotech, energy and quantum computing has become a more pressing concern in the wake of a range of global disruptions through the early 2020s.
Along with broad supply chain breakdown during the COVID-19 pandemic, the geopolitical environment has become more fraught. Escalating trade wars, the imposition of sweeping import tariffs in the US and heightening tensions between America and China have thrown globalised networks into question. Alongside those challenges, Environmental, Social and Governance (ESG) directives have placed an increased onus on supply chain leaders to sanitise their supply networks against modern slavery, conflict minerals, and indirectly sourcing materials from rogue nations. The case for establishing redundancies in supply, as well as heightening visibility on an end-to-end supply basis, was thus clear amongst the panel.
“Koray, you work with a lot of different companies,” began Villablanca. “Do you think there’s a mindset issue where politics and commerciality need to come together to realise the common goal and create resilient supply chains?”
“Directly, there probably is a mindset issue,” Köse replied. “I think there is a lack of clarity about the importance of geopolitics’ impact upon supply chains, and there is certainly the capability issue of understanding the context of geopolitics.” He then elaborated on the challenge by highlighting shortfalls in companies’ predictive capabilities.
“Companies operate with risk dashboards,” he continued. “Sometimes it’s just red, yellow, green, and that’s all you have. They have a few key risk indicators like financial compliance issues, quality issues, performance issues, but you never see strategic foresight. It’s retroactive, based on historical numbers. If you look at a production line it might say, ‘We didn’t have an incident for 80 days’. What if somebody were to say, ‘We won’t have an incident in the next 100 or 80 days’? You don’t see that in production; it always looks backwards because it is built on the past.
“A big problem in a lot of the military complex, and in politics, is thinking that the next war will be like the last one. They cannot necessarily understand that asymmetric, hybrid and proxy warfare is really where things are going, and the same goes for technology. Supply chains are often built on yesterday’s technology.”
To then end, he believes supply chain leaders should be more forthright in leveraging their profound influence upon business operations: “In supply chain, we see the conversation about having a ‘seat at the table’ for decades now and I always say, ‘Just bring your own freaking table’, and invite everybody to it. Everything, every cent in an organisation, goes through you. Own that leverage and don’t run after them, invite them to come to you. Your table is where value is generated, secured and innovation and competitiveness are established. You hold the fate of the future.”
As to politics’ place within meeting this challenge, Villablanca asked Ellwood whether the political sphere could be doing more to shape the corporate agenda.
“Yes, and that last point you said is the most critical; recognising that there is a massive risk, that this is a very different world that we’re now facing, and I expect the point that’s really being made is the absence of politicians,” he said. “The politicians themselves need to be told what we need because their expertise in understanding this arena is poor.
“China now owns the periodic table. If you are into silicon wafers, where’s your serum going to come from? If you’re into magnets, where’s your Europium going to come from? You need to know this sort of detail, and it’s not just you yourself. It’s your suppliers and the suppliers of your suppliers, too.”
While supply chain transparency has undoubtedly increased in recent years, he stressed that considerable work remains to realise total visibility.
“At a recent procurement event I was astonished at how many household names were unaware of what their second and third-tier partners were doing during the procurement cycle,” Ellwood continued. “They didn’t understand the vulnerabilities, down to the SMEs, of what’s going on. If the assembly line stops then that’s quite serious, but what’s going to happen because of that stress?
“There are people who don’t understand it over here, not recognising that our competitors are deliberately looking at our supply chains and working out where that vulnerability lies. It is so that Ford stops making trucks, so that pharmaceuticals stop making medicines. Ministers are ignorant about this and we need to become better at it. This is the frontline of the next war that we’ll fight, and that war is coming.”
“I would add that some can’t fathom the complexity of certain supply chains and the vulnerability and risk associated with multiple tiers within them,” Villablanca posited. “There’s probably a translation issue with regards to business and politics around supply chain.”
To this, Ellwood stressed that international government groups hold the keys to unlocking a broader understanding within members’ respective political spheres.
“The G7, the Five Eyes Alliance, this is where these conversations need to go,” said Ellwood. “To recognise this must be a priority within the western world, we now need to have an alternative source to make sure that we can build our aircraft, we can build our factories, we can build our products. It isn’t so much the rare earth minerals themselves, but it’s the processing. Setting up a processing factory for rare earth minerals takes almost a decade.”
Here, a guest interjected with a point that hearkened back to Ellwood’s own admission that politicians have an innate directive to focus on local, vote-winning issues: “Politicians recognise there are no votes in this. The average MP will say their inbox is full of ‘fix the NHS’, ‘get the roads fixed’.”
Resolving political challenges such as those, Ellwood replied, is predicated upon strengthening economies to open fiscal headroom for public investment.
“If our economy is affected by problems with our supply chains, there’ll be no money in the treasury,” he explained. “Not for health, transport, potholes, policing, defence. It’s imperative that if you want to fill the coffers, then we need to protect ourselves. You can only do that with supply chain resilience. As a politician, you’ve got to take the people with you if you want to make the case.”
Villablanca then repositioned the conversation with regards to pressing issues around sustainability.
“There’s a lot of risk associated with our supply chains that goes beyond geopolitics,” she said. “We also have climate issues, economic issues. How do we maintain sovereignty in our supply chains while still trying to pursue goals around sustainability?”
“Supply chain transparency is something that I advocated for when I was a young consultant in the early 2000s when my hair was not so grey,” said Machholz, highlighting the gradual shift in supply chain priorities around identifying the finer details across those networks. “It isn’t a new topic and in the EU we now have the Critical Raw Materials Act.
Machholz drew the conversation towards sustainability in the context of integrity and continuity. “I’m German, and what we have is engineering power. We are good at car and machine manufacturing, but we have no natural resources. We have a little bit of coal, but all other things need to be imported. There have to be some sources to get those things.
“There’s Trump and tariffs going up and down, and we have some other geopolitical tensions affecting supply. You might say, ‘Where do I source this particular thing from? We don’t really have a second source of supply, because both of these sources are located in the same geographical spot.’ Maybe both of them are coming out of China.”
For Machholz, lessons to be gleaned around forecasting with technology’s latest predictive capabilities were presented en masse by the pandemic. “If we look at COVID, almost all supply chains were disrupted and you were running out of materials,” he continued. “You needed to be much more risk alert, and this is the problem we have already touched on: not looking in the back mirror, but using your data and turning insights into foresights to see what could happen, and then being agile and adapting.
“Sustainability could be one thing, having several sources, having alternatives, but of course, especially if we’re talking about critical raw materials, critical parts or maybe patent-protected or monopolistic suppliers, we are in an ambitious situation, put it that way, to find some alternatives.”
Machholz stressed: “This is something that each supply chain manager, CPO, and CFO, needs to understand to set boards’ scenarios. I’m pretty sure with the help of artificial intelligence we can elaborate much more on our data and predict different scenarios so we can be more prepared rather than just reactive.”
Shifting from cost-cutting to resilience
Of course, supply chain executives are under siege from an enormous breadth of challenges, whether it’s geopolitics, technological evolution as both a benefit and a threat, and shifts in consumer behaviours precipitated by those same factors. Rising to meet those challenges on all fronts, especially in a business landscape that often adheres to cost optimisation and efficiency over investing in resilience, can give rise to decision paralysis or financially-stymied strategies.
Turning to Köse, Villablanca asked: “There’s a mountain of black swan events lurking around us, ready to attack at any minute. What are the things that a supply chain leader should be focusing on today to try to build resilience?”
“To be honest, I don’t think they’re looking at building resilience,” said Köse. “What they’re doing right now is cost optimisation, looking at inflation and making sure that the profit margins are going to be protected through the bottom line, not considering top line revenue maximisation.
“I think agility and economics always need to come back to top line, which basically means in the context of normal business 101 you are producing something, that there is a want and a need and a willingness to pay, and not necessarily hyper-focusing on the cost line or saying, ‘I’m not going to produce a bunch of bullshit that nobody’s going to pay for, just because I got to claim savings to my CFO’.”
“I’m going to challenge you there,” Villablanca interjected. “I think, theoretically, that’s great, but everybody in this room is running a business. We have our own boards, people above us, board directors and so on saying, at the end of the day, you are remunerated and we are all remunerated for our quotas. How do you deal with the day-to-day management of your business as well as building that kind of resilience, agility and visibility?”
To this, Köse stressed that the difference can be made by reframing how businesses examine and counteract risk. “We’re thinking about turning the tide by really embedding foresight in risk indicators. Those risk indicators need to incorporate geotechnical, geostrategic issues with foresight,” he continued before highlighting what he implied to be a tendency for organisations to bury their heads in the sand when faced with developing geopolitical challenges.
“I published an article before Russia invaded Ukraine, about Russia getting ready to invade Ukraine, that went through loads of red tape and debate internally that calling Russia an aggressor was cancelled out from the research note,” said Köse. “They said, ‘You can’t say that’ while it was pretty obvious that Russia were clearly the aggressors.
“The supply chain-focused function needs to spread out and have these geopolitical indicators, geotech-related risk indicators, and not just the last financial report from your supplier A to Z or tier one or tier two.
“We must then tie it back to the value and revenue you’re generating. Get away from this hyper focus and obsession with savings. In that context, make your analytics smarter with a bold analysis of things that you feel uncomfortable about. Think about ‘what now?’ and think about politics. I know we eradicated politics out of business as much as we eradicated many other beliefs from the conversation, but it has to come back.”
With this in mind, he proposed that cost optimisation is to an organisation’s detriment where resilience is concerned, not to its security. “Your indicators for success are not just on the cost line item or bottom line. Your priority must be on the top line. If I sell more, I can grow. With cost optimisation you can shrink yourself to death. That’s what some countries have done with political reviews where you shrink this, you shrink that, let’s shrink here, let’s shrink there. Potholes, collapsing bridges and rail systems, come because of the shrinkage of your investment budget for public infrastructure, for example. What I have found in the last decade of the sustainability high is that it actually impeded resilience, while the narrative said it was supposed to increase resilience.”
To this, Machholz highlighted the data behind Köse’s comments that resilience offers heightened growth potential than cost-cutting measures.
“There were some studies from McKinsey which showed that companies who are investing in risk management are 4.7 times more profitable than those who don’t,” Machholz shared, stressing that businesses engaged in this mindset are missing growth opportunities.
“People just fall back and say, ‘Okay, now the risk is over, COVID is over, whatever event is over,” he continued. “‘We can just go back to business as usual’. Resilience is just extra cost, extra inventory, maybe a second supply chain that needs attention, money, and people to take care of it, and they just simply don’t do it. This is, I think, one of the big threats that we are all facing.”
Exiger Executive Forum: A closer look
The Exiger Executive Forum (EEF) in London is a global think tank that brings together elite independent voices from strategy, policy, technology and business to equip leaders with the frameworks and foresight needed to navigate the multipolar era. The EEF is exclusively curated for industry experts, analysts, policy makers, and senior procurement and supply chain decision-makers through Exiger, a market-leading supply chain AI company. The next Exiger Executive Forum ‘War-time Economics: How Europe’s €800BN Defence Spend Will Reshape Supply Chains’ will take place in London on Thursday, September 18th, 2025.
Ellwood concurred that this lack of foresight and willingness to invest in protective supply chain measures leaves businesses undefended against interruptions both foreseen and not. “We need to prepare ourselves for unexpected events to happen as the norm,” he said. “What would happen to any business if it didn’t have power for 72 hours? How would you look after your personnel? How do you make sure you salvage the business so that, after 72 hours, you can get back up and running. These aren’t questions that we naturally posed at the moment because again, we tend to park these things.
“The mentality may be, ‘The world certainly feels like it’s getting dangerous, but my life actually looks okay.’ That isn’t the right attitude. If you go to Sweden or Finland, who are much closer to the war with Russia, they are preparing in a way that we are not for a major event or incident. It may well be that when something happens and it’s the moment where governments wake up, but you shouldn’t be waiting for that moment.”
Villablanca then highlighted the recent, universal example of poor supply chain resilience bringing business, both domestic and international, to a grinding halt. “Did we learn nothing from COVID?” she asked. “Did we not take the opportunity to stress test our supply chains and look for the vulnerabilities within multiple layers?”
In response, Ellwood invited guests to consider whether the muscle developed in response to COVID’s interruptions had been allowed to atrophy. “I think that’s a question for everybody; how much of that was retained?” he asked before blending the conversation of supply chain agility with the potential for organisations to support national security should their respective nations go to war.
“During COVID, supply opportunities came about,” he said. “Everyone here today represents diverse businesses. What services do you provide that you could tweak or add value to where something else has fallen short?
“That’s where life really becomes interesting because that’s what happened in the First and Second World Wars. We called on organisations that previously had no interest in helping out with the war effort to add support and value to the wider machine and protect ourselves from a resilience perspective.”
Challenges faced by supply chains, he explained, have analogues to business that clearly marry the political and business spheres: “When we say ‘war effort’ today, it isn’t just Army, Air Force, Navy, air, land and sea. It’s now cyber, it’s space, it’s coastguard, it’s AI. This greater warfare is where a lot of the real pain will happen. As happened in COVID, it’s going to be the clever people in the industry that step forward to say, ‘I’ve already thought about this’. They’re in the patent-esque mode, they’ve done the work to say, with a few tweaks here and there, give us some extra money, and I can alter what I’m producing to provide a solution.”
The roles of government and industry
While there are clear precedents for, and incoming needs to, prioritise supply chain resilience in both the political and business spheres, the conversation made it clear that a unified front stands to offer the most impact.
The challenge, particularly in a political environment preoccupied with economic stabilisation, increased productivity, and soothed international relations, is identifying a shared north star or galvanising body to lead the shared project.
Striking at the heart of the conversation, one guest posited: “If we want to align supply chain and geopolitics moving forward with a mutually-reinforcing relationship and shared goals, joint risk assessment, a focus on resilience over efficiency, and heightened cross-disciplinary talent and data, what are the forward steps?
“What can we within industry do in partnership with governments to move this forward?”
Representing the political voice, Ellwood replied: “There are certainly supply chain improvements that you can do on a national, sovereign basis. But from where I sit, there is a wide political threat that we face and are losing right now. One of them is to do with the energy supply, and another is the threat of AI. The quantum race will be won or lost in the next five years’ time, and that will be game-changing. It simply means that if the winner can harness the power of computing on that scale, everything’s over.”
Ellwood then invoked the technological advancements made in modern wartime, stressing that political figures must wield the mindset of those times to accelerate progress.
“I would like to see some two or three Manhattan Project equivalents, if you like, to ask, ‘How do we harness modular nuclear power?’,” he said. “That’s a very easy way to keep our lights on locally. Then, how do you harness AI? Let’s make sure it is this side of the world that wins that.
“Again, there isn’t that coordination, that sense of urgency, because it’s too far down the road,” he concluded, then highlighting that opposing forces on the world stage already have the unified capabilities that many Western nations lack. “State, industry, and academia in China, for example, are all morphed into one and that gives them huge benefits in the race for these key arenas.”
Köse elaborated on this point by highlighting Turkey’s effective coalescence of business and government.
“If you think about the private-public national defence sector in Turkey, it came from being totally dependent on the US armoury to a leading innovator of drone wars,” Köse explained. “When you think about asymmetric warfare, innovative, impactful and economic weaponry, from drones to secure soldier transportation and all of that, think about what Turkey is producing right now in technology compared to others. The headway Turkey experienced in the last decade in the defence sector is unprecedented.
“That private-public sector coalition and symbiosis has covered such a need for them in a decade that many are surprised. I think that is something that Europe has to relearn, because Europe thinks a lot about public sector dominance in an area where the private sector should actually take charge. In the US, it’s the opposite. They say, ‘keep the public sector out’. The solution lies in collaboration and bringing each sectors strength to the table while leaving out their weaknesses and flaws.
While of course not advocating for adopting the political model, he agreed with Ellwood that nations like China have an innate advantage in this race. “When you think about the way that the autocratic countries are going about it, it’s the public sector dominating the private sector environment,” he said. “That’s why they’re so hyperfocused on things and they can scale but not necessarily innovate in this sector.
“I love the government when it’s in the right place to actually do something positive and impactful. But when I’m exposed to it, I usually get anxiety issues due to the lack of pragmatism, innovation and agility. But hopefully there’s this convergence of politics, business and academia driving intelligence into critical sectors and industry, and we’re trying to drive it through this think tank here.”
The unified case for supply chain sovereignty
Exiger’s Supply Chain Sovereignty in a Fractured World event was an enlightening review of the supply chain landscape and the myriad challenges and stakeholders it encompasses.
While the panellists’ conversation in many ways highlighted the disconnect between government, business, and academia, the resonating message was one of shared pressures and goals. Where governments have pulled back on the reins of public spending, many organisations have in kind adopted a cost-optimisation mindset that may protect the bottom line but opens the door to heightened vulnerability.
Where governments must consider challenges around energy sovereignty and insulating populations against the breakdown of globalised networks – as was demonstrated upon Russia’s invasion of Ukraine in 2022 – supply chain executives must create redundancies to cover lapses and minimise potential disruptions to production and wider organisational integrity.
The guests’ final comment, that states which can marry both the public and private spheres towards shared interests, neatly encapsulates the urgency with which those worlds must reunite. While much work remains to enmesh those spheres, it is clear that the conversation is progressing at pace.
James Watson and Rachel Noll, Argon & Co, explore how smarter use of data, automation, and robotics can help manufacturers unlock productivity.
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The UK government’s newly launched industrial strategy was long in the making, but has arrived with bold ambitions. Its 10-year roadmap for economic growth has a firm bet on advanced manufacturing as one of the eight high-potential industries in the UK, along with sectors like financial services, clean energy, and life sciences.
For many operating in this sector, this support couldn’t have arrived soon enough. Manufacturing has been pushed from disruption to disruption, hampered by inflation, persistent labour shortages, and global supply chain crises. Businesses have been urgently calling for tools to help them do more with less, and, against this backdrop, the government’s commitment to invest in digital transformation and skills has been widely welcomed.
The industrial strategy features investment in specialist advisory services and organisations to increase technology and robotics adoption across advanced manufacturing. But the big question is now whether it will deliver the change that manufacturers are hankering for, especially in relation to smart manufacturing.
How manufacturers can get smart: in five stages
Central to the Advanced Manufacturing Sector Plan is a push to scale the adoption of robotics, data, and advanced digital technologies. While cutting-edge automation and predictive AI are becoming more accessible, many manufacturers – particularly SMEs – still lack the maturity or infrastructure to implement them.
The industrial strategy aims to bridge this gap, announcing a new Robotics and Autonomous Systems (RAS) programme, backed by an initial investment of £40 million. This will establish a new network of Robotics Adoption Hubs – physical centres with the expertise, equipment, and connections to accelerate firms’ adoption of robotics. These will be designed as a ‘one-stop shop’ to help end-users invest in RAS technologies in a safe, low-risk environment.
However, smarter manufacturing also needs to be backed by operational visibility and a strong data foundation. Here’s how manufacturers can embark on this journey successfully:
Stage one: Increase operational visibility
Manufacturers first need sight of their core operational metrics to define and monitor performance. After all, you cannot improve what you don’t measure.
Many manufacturers still rely on paper-based reports and inconsistent metrics, making it hard to compare shifts or pinpoint problems. Without operational visibility, actions tend to be reactive and retrospective. Perhaps a shift has underperformed, but without reliable data, it’s impossible to identify the cause.
The first step is defining consistent metrics across all shifts – such as operatives per line, output per line, downtime reasons, or quality defects. Even simple tools like whiteboards or spreadsheets can instil the habit of consistent data capture and begin building a mindset of continuous improvement. The input might be manual and prone to human error, but it provides a common point of reference and highlights areas needing further insight.
Stage two: Build deeper operational insight
Capturing data in an automated format is inherently more reliable, as it doesn’t require human interpretation. Data such as scan times, equipment health and performance, and employee clock-in and out times can feed into visualisation tools like Power BI or Grafana, helping to spot trends and anomalies over time.
Data is ideally stored in a data warehouse to allow for secure deposit and retrieval in a structured format. Layering information from different sources can reveal patterns. For example, does the mechanical equipment perform consistently at all hours? Are reworks linked to break times?
Organisations may spend longer in this phase retrieving, cleansing, and analysing data, but it’s a vital foundation for future analytics.
Stage three: Apply predictive analytics
One of the defining features of smarter manufacturing is being able to predict what’s happening next and act on it – and predictive analytics can bring this to the factory floor. With knowledge of trends, organisations can begin to form corrective courses of action, strategies of intervention, and avoid downtime. For instance, if the data shows that breakdowns spike after 100 hours of runtime, repairs and servicing can be scheduled in advance. Or, if absenteeism spikes after bank holidays, extra staff can be rostered.
Stage four: Use prescriptive analytics
At this stage, it is assumed the organisation has a strong data foundation. Prescriptive analytics recommends specific actions based on historical feedback loops: detecting a trend, initiating a response, and measuring its effectiveness.
By combining data sources, like weather, complaints, and inbound profiles, organisations can run probability-based models to suggest specific checks or actions. However, human judgment is still required to execute or validate these suggestions. To build trust, models should offer tracing to help users understand why a decision has been made.
Stage five: Become self-optimising
At this final stage, responses are automated, based on high confidence in the data and models. Trust in data is key to achieving full insights maturity. Getting here has likely taken time, learning, and refinement, and as a result, can be relied upon with little human intervention. Like Google Maps rerouting you in real-time around traffic, self-optimising systems react instantly to disruptions – the user only needs to accept or decline the suggestion.
A “human-in-the-loop” retains a level of control, but decisions can be made in seconds. While full automation across the value chain is ambitious, it can be prioritised in high-value areas.
The human factor
While the industrial strategy is welcomed with open arms by most in the industry, success still depends on people as much as policy. While the journey is data-driven, people are the linchpin to progress – or the lack of.
Resistance to change is common. Humans simply cannot process large volumes of data as effectively as a machine can, but their insight is vital for interpreting results and providing context. Ultimately, the most effective smart manufacturing journeys have a perfect blend of human intuition with machine intelligence.
John Santagate, Global Senior Vice President of Robotics at Infios, delves into the challenges tariffs pose.
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Successful supply chains have always been measured by how well they deal with complexity. Getting deliveries and returns right requires multiple levels of collaboration, information sharing and strategic decision making to reduce the risks of confusion or delays. In tandem, customer expectations have changed. Expedited deliveries and a smooth returns process are now intrinsically linked to a positive customer experience. Amongst US consumers, cost, transparency of shipping and flexibility and ease of returns, including real-time tracking, are now the leading delivery preferences.
With seamless buying experiences now standard, pauses in supply chain execution have major consequences for customer loyalty and brand reputation. This is particularly damaging at a time when every pound is crucial. Beyond driving cost efficiencies, enhanced speed and resilience are now equal parts of the supply chain challenge, and retailers must get this process right to succeed.
Even if brands understand that resilience is key, achieving this is another matter entirely. The volume and regularity of significant supply chain disruptions have tested the resilience of even the strongest supply chains. Organisations continually reevaluate the processes they have in place to ensure goods continue to reach customers.
Global impact of tariffs
Political upheaval, global conflicts and the introduction of trade tariffs have driven six months of unprecedented global supply chain uncertainty. It’s estimated that the economic impact of the tariff disruption alone could reach as high as $1.4 trillion globally. Ongoing tensions have destabilised established supplier relationships and created uncertainty in the cost of products and materials. Beyond costs, businesses face increased uncertainty in product availability and financial planning, adding further obstacles to already complex operations.
2025 was a fundamental milestone in supply chain strategy. Single region sourcing and rigid inventory management are rapidly fading. In its place, diversification in sourcing and real-time adaptability have become more important than ever.
At its base, for retailers, navigating the evolving tariff environment is about maintaining customer satisfaction. Organisations have opted to move manufacturing of products to new markets. Others have used previous pauses in tariff implementations, and regular legal challenges, to try and ‘time’ tariff implementations and activate previously budgeted activity at the optimum period.
Among these changes, a question has emerged – in a world that is now defined by constant tariff uncertainty, where can technology help to establish a new, more resilient approach to supply chain execution?
Does forward buying help?
Forward buying of inventory has become the most common response to tariff-inspired uncertainty, as organisations aim to maintain product levels and meet customer demand. In the short term, some stability has been achieved. Organisations have been able to maintain existing purchasing and pricing strategies and the flow of goods. Over the long term, however, this strategy carries risks. In fast moving industries, like consumer goods, demand can be linked to virality. Trends can die as quickly as they begin, increasing the risk of product redundancy. Falling demand already costs even the smallest retailers as much as £10K per year. Over the long term, tariff uncertainty will continue to disturb the balance between purchasing and investor management and could cause costs to spiral.
Staying future-ready requires businesses to enhance preparedness. Streamlining operations and building real-time visibility are an important step. As peak season planning picks up, many organisations face uncertainty around how to manage procurement and ordering in a way that minimises waste and inefficiency.
Integration of supply chain technologies, like order management (OMS) and warehouse management (WMS), provide real-time visibility across customer demand, supplier delays, and order status. Live, up-to-date information empowers teams to proactively manage and optimise supply chain operations, reducing bottlenecks and maintaining overall efficiency.
Making technology-powered decisions
The current tariff environment has also reduced the decision-making window. Taking a painstaking approach to sourcing goods and materials was once common practise. The current environment, however, necessitates companies to pivot on short notice. The announcement of any new policy or tariff could inflate costs to an unsustainable level. The ability to effectively source alternative suppliers, in markets with smaller tariff restrictions, or being able to re-route products and amend production timelines, has become a focal point of success.
This level of decision making requires the practical application of data. Predictive analytics are a powerful tool that organisations can use to understand when costs might rise, or delivery delays could happen. Real-time dashboards mitigate supply chain disruption and provide informed and expedited decision making. Businesses can monitor changing global developments; assess potential risks to their own supply chain processes and act in a greatly reduced timeframe. Traditionally, these planning cycles may have taken place on a quarterly basis. Today, data analytics tools mean pivots can be made in days or hours. The impact of this cannot be overstated, building resilience against disruption alongside a wider competitive advantage.
It is safe to say that disruption isn’t going away. Whilst tariffs undoubtably pose challenges, the opportunity for organisations to use this period for fundamental business change is clear. Technology can build stronger supply chain processes and speed up real-time decision making. Not only will this improve responses to tariff-based disruption, but ultimately it will improve the ability for businesses to meet customer expectations, which remains the end goal.
Simon Bowes, CVP Manufacturing Industry Strategy EMEA at Blue Yonder, on how to navigate challenging situations in supply chain.
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Organisations worldwide continue to face severe supply chain disruptions, creating immense operational challenges. Compounding these difficulties is a bleak economic outlook that shows few signs of improving, keeping consumer confidence stubbornly low.
Meanwhile, experts are claiming that President Trump may stand firm on his plans for sweeping global tariffs. This is despite a US trade court ruling that the President had exceeded his authority in imposing the duties and ordered an immediate block on them – only for a federal appeals court to temporarily reinstate the most sweeping of the President’s tariffs. This means tariffs remain an ongoing problem and, the UK market will likely face further disruption.
When you factor in increased costs, labour shortages, escalating geopolitical tensions, cybersecurity attacks, and weather-related disasters (like the $27 billion in damages seen in the US alone), it’s evident that constant instability has become the new normal for supply chains.
Senior executives agree, with 84% stating in a recent survey, that they have encountered disruptions within their supply chain over the past year. Therefore, organisations must be prepared for the unexpected, understand the potential consequences, and have a plan in place to mitigate such risks.
How can organisations create a strategy for the unpredictable? The answer is by building a comprehensive plan that integrates the capabilities, processes, and technologies needed to operate efficiently, no matter what happens.
End-to-end supply chain planning
The first step is to create an overarching strategy that encompasses the entire supply chain. Having visibility across all areas will support synchronised planning and communication across disparate functions.
When organisations bring together teams and processes, they can start to overcome the traditionally fragmented approach to supply chain management. Uncoordinated procedures inevitably create an inefficient and weaker supply chain, which makes it particularly vulnerable to disruptions.
Whereas, resilience is strengthened by collaboration between functions, if backed with integrated data systems and communication methods to enable sharing of real-time information. Keeping all parties in the loop, with relevant data and meaningful insights, encourages better and faster responses to problems, as well as increases awareness of potential forthcoming issues.
Ideally, what’s needed is an end-to-end connected platform where all departments, offices and sites are working from the same consistent, up-to-date data. And, are not required to change systems to find or cross-check relevant information and iron out anomalies.
Smart decision making with AI and automation
Next, it’s vital to incorporate intelligent automation to improve and speed up decision making. Companies are already using data tools to forecast supply and demand planning, but they now can incorporate AI’s ‘always-on’ capabilities to dynamically evaluate and adapt to changes in supply and demand.
AI-powered solutions can assess how work is progressing by automating data gathering for analysis and optimisation. Automation can handle routine issues, leaving supply chain professionals free to focus on more strategic tasks. Furthermore, AI can facilitate transparent, trackable decision-making to accommodate predicted supply chain disruptions or react to unexpected ones. This level of auditing provides vital insights that will help refine future decisions and actions for the next time similar circumstances materialise, improving outcomes in the long-term.
Additionally, organisations can leverage AI to predict the likelihood of disruptive events happening. Knowing how often they occur and how they have unfolded in the past can inform decision-making and planning. Whether that’s examining competitor behaviour or economic trends, AI tools can process millions of pieces of real-world data to model likely what-if and worst-case scenarios that could impact the supply chain. While these instances may seldom occur, proactive scenario pre-planning provides the foundation for an effective response in the event of real-world disruptions or disasters.
Organisations should identify the specific issues which present the highest risk to their business and ensure appropriate mitigation measures are ready to be activated immediately they are needed.
Investment in flexible, agile solutions
Restrictive working practices coupled with outdated technology can make it harder to react effectively when disruptions occur. Building long-term supply chain resilience means finding a best-in-class solution and partner with deep domain expertise to guide deployment of appropriate modern technologies.
When considering options, businesses should keep in mind fundamental requirements for flexible, agile technologies. These include checking how a software or platform supports data integration and cross-organisational collaboration, whether it can simulate market conditions in near real-time, if the technology architecture is compatible with AI, and how easily does it scale.
It’s critical to have a technology platform that’s designed for scalability and extensibility to manage changing workloads and requirements. Therefore, organisations should look for products with a cloud-native architecture for scalability and resilience, a microservices-based approach for flexibility, and solutions that are easy to configure and maintain without specialised IT expertise.
Building a resilient supply chain
In today’s volatile business landscape, organisations must embed resilience into their end-to-end supply chains, supported by the right technical infrastructure. Investing in modern technologies and platforms offers additional advantages. Advanced solutions that adapt easily to changing conditions, automate manual processes, and harness the power of AI can also provide a competitive edge. For instance, AI’s ability to crunch and analyse vast amounts of data can reveal hidden opportunities stemming from unexpected events—opportunities that might have been overlooked previously.
By making smart technology decisions, organisations can build more resilient supply chains, enabling them not only to survive in current unstable conditions but also to optimise performance and operate more profitably.
By Mohammad Mesgarpour, Head of Data Sciences at Microlise, discusses why we need to think beyond data when it comes to logistics.
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Data is everywhere — often invisible, but constantly at work behind the scenes. As we move through our day, it quietly powers much of what we experience. A simple card payment in a shop sets off a chain reaction: your bank processes the transaction, the store updates its stock levels, capturing vehicle location and driving behaviour location data by telematics box, and the company’s central system records the sale.
It’s data that informs the display board on a train platform, letting you know your train is just two minutes away. From our morning routines to our evening commutes, data is woven into how we live in 2025.
And the scale of it is immense.
Today, it’s estimated that there are around 181 zettabytes of data globally. That’s equivalent to one trillion gigabytes or one billion terabytes. In just a few years, this figure is expected to soar to 394 zettabytes — a rapid expansion that highlights just how central data has become to everyday life.
We may not always see it, but at every digital touchpoint, data is shaping the world around us.
Data in logistics
The logistics industry has long recognised the value of data and has been quick to adopt technologies that help improve performance and efficiency. As new tools and systems have emerged, the sector has consistently found ways to use them to its advantage.
It started with the basics. Early telemetry services, such as GPS tracking, gave operators a clear view of their vehicles’ location on a map – a simple yet powerful tool. From there, the industry moved into deeper insights, analysing fuel consumption patterns and driving behaviours to improve overall fuel efficiency and road safety.
Since then, the capabilities have expanded significantly.
Today, vehicles can generate ten times more data than they did just ten years ago. Thanks to advances in both hardware and software, operators now have access to a wealth of information that can transform decision-making and drive smarter logistics operations.
But this volume of data doesn’t come without challenges. More data doesn’t always mean better outcomes or deeper insights. Businesses are beginning to recognise that without the right systems; high-quality and relevant data; and effective analysis, they can become overwhelmed rather than empowered.
The real opportunity lies not just in capturing data, but in turning it into meaningful, manageable and actionable insight. It can drive operational efficiency, informed decision-making and measurable business outcome.
The appliance of data science
It’s easy to assume that simply collecting data is enough to transform logistics and haulage operations. But in reality, raw data alone won’t deliver results. To drive real value, that data needs to be refined, analysed in context of strategic business objectives. This is where the real analytical challenge begins.
There’s a well-known saying in data science: garbage in, garbage out. And it’s more relevant than ever in an era where artificial intelligence tools – like ChatGPT – are increasingly part of the conversation where the quality of data directly determines the accuracy and effectiveness of the AI model’s output.
Anyone with deep subject matter expertise will quickly spot the flaws when these models are asked about highly specific topics. They may generate convincing answers based on flawed or outdated sources, and while experts can see through the inaccuracies, others may accept them at face value. When that misinformation is reused and reinforced, the cycle continues, leading to skewed conclusions and poor decisions.
The bottom line? Better data leads to better outcomes.
This principle becomes even more important in real-world applications, such as complying with the government’s updated requirement to inspect trailer braking systems at least four times a year instead of once. With accurate, well-managed data, operators can confidently predict when inspections should take place, helping to reduce downtime, avoid unnecessary checks and keep fleets moving efficiently.
Turn around, go back
Geofencing is another area where accurate data is critical to the success of logistics operations. When systems misreport how long a delivery takes after entering a geofence (delivery site), the ripple effects can disrupt far more than just one delivery.
Inaccuracies here can throw off turnaround times, leading to incorrect arrival and departure times, delayed subsequent jobs, inaccurate performance metrics and ultimately frustrated customers. What begins as a small data issue can quickly escalate, leading to missed expectations, strained relationships and inefficiencies across the board. Moreover, if this inaccurate turnaround time is fed into a machine learning model to improve future logistics planning, it can lead to a systematic degradation in the model’s reliability and usefulness, and consequently, in the effectiveness of the plan itself.
High-quality data helps avoid these pitfalls entirely. When the source information is precise, the systems built around it work as intended. And importantly, solving data issues upstream before they feed into larger workflows is far simpler than trying to fix the consequences later on.
In logistics, precision isn’t a luxury. It’s essential.
Open source informs much more
Modern technology plays a key role in identifying the behaviours that impact operational efficiency. Actions like harsh braking, rapid acceleration or excessive cornering speed all contribute to increased fuel consumption. And today’s systems don’t just monitor them, they help correct them. Moreover, onboard sensors and telematics devices track and monitor vehicle health in real time, flagging issues before they become costly problems. Whether it’s the driver, the transport manager or fleet manager, having this information early enables proactive maintenance rather than reactive fixes.
The story doesn’t stop at the vehicle.
Open-source and crowd-sourced data brings another layer of intelligence, offering a broader context that goes beyond what’s happening inside the cab. By combining internal data with external sources, hauliers can gain insight into accident-prone areas, localised weather patterns or planned road closures; all of which influence route planning and delivery performance.
This level of enrichment adds real value. Rather than simply receiving updates every mile or minute, operators benefit from a fuller picture of the journey, making location data smarter, not just more frequent.
Reporting for duty
Accurate data – whether it’s tracking punctuality, fuel consumption or driver performance – underpins a wide range of operational reports. These insights can be tailored to suit each customer’s needs, helping them streamline operations, drive efficiencies and stay competitive in a fast-moving industry.
As we move toward an expected 394 zettabytes of global data by 2028, the value of this information lies not just in volume, but in context and quality. Future data won’t simply indicate what happened, it will increasingly help explain why it happened, too.
Take driver behaviour as an example. Instead of just recording that a driver braked harshly, new systems will identify the circumstances behind the action. This shift means drivers will be recognised for making safe, responsive decisions rather than penalised by isolated statistics.
It’s a powerful step forward. But unlocking the full potential of this data-driven future depends on how well the information is used. Data must be processed, applied and interpreted thoughtfully.
When done right, it not only enhances internal operations, but it also delivers measurable value to customers as well.
Mario van den Broek, Partner, RSM Netherlands, dives into regulatory fragmentation and how it’s affecting shipping.
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The global shipping industry has reached a critical turning point.
The International Maritime Organization’s (IMO) recently agreed emissions deal has been hailed as a milestone in maritime decarbonisation – signalling long-overdue progress in regulating one of the world’s most polluting industries. But this breakthrough has been overshadowed by a stark omission: the United States’ decision to walk away from negotiations.
The US’s withdrawal raises serious questions about the enforceability and cohesion of the agreement. The IMO’s regulatory model relies on flag states to enforce compliance. If more nations opt out or water down their commitments, enforcement becomes inconsistent, and a two-tier shipping system could emerge: one made up of operators bearing the cost of compliance, and another of those operating under weaker or unenforced regimes.
More worryingly, it risks triggering a wider trend of regulatory fragmentation – with significant consequences for manufacturers, logistics providers and supply chains around the world.
Why is this a setback for companies?
For global businesses, consistency and predictability in regulation are critical. Fragmentation in maritime decarbonisation policy disrupts both. Without a unified global standard, companies must navigate a patchwork of national or regional rules – each with different timelines, thresholds and enforcement regimes. This not only creates legal and operational uncertainty but also increases the cost and complexity of compliance.
Companies that rely on international shipping, especially manufacturers, exporters and retailers, may be forced to choose between higher-cost compliant carriers or risk reputational and regulatory exposure by engaging non-compliant operators. Those costs will not be evenly distributed.
Firms operating across multiple markets may find themselves juggling multiple emissions reporting systems, carbon pricing mechanisms and verification requirements. For small and mid-sized businesses in particular, these added burdens could squeeze margins and dampen competitiveness.
There are also strategic risks. A lack of coherence in shipping policy makes long-term supply chain planning more difficult. For example, businesses that have invested heavily in decarbonisation may now hesitate to go further if they perceive competitors, especially in markets with looser regulation, are gaining an unfair advantage. This could stall progress not just in shipping, but across adjacent sectors that depend on it, from automotive to consumer goods.
The US’s decision to walk away from the IMO negotiations weakens the political legitimacy of the agreement and signals to others that opting out is a viable path. In doing so, it undermines the collective action needed to decarbonise global trade routes. The result is a business environment marked by growing divergence – where resilience is replaced by reactivity and climate ambition is undercut by regulatory uncertainty.
How can companies turn this into a strategic advantage?
While the policy landscape remains uncertain, companies can still take practical steps to prepare for change. Carbon pricing is beginning to influence shipping costs in some markets, and businesses that assess the potential impact early may be better placed to respond. This includes reviewing freight strategies, factoring potential carbon levies into budgeting and setting clearer sustainability expectations for suppliers.
Some organisations are already exploring options to reduce emissions within their supply chains, such as selecting carriers that use alternative fuels like LNG, biofuels or methanol. Manufacturers are responding too, choosing greener carriers, shortening transport routes and investing in digital tools to track and report emissions.
Moreover, embedding sustainability into core decision-making – rather than treating it as a separate or reactive issue – will help companies manage regulatory risk, meet stakeholder expectations, and identify areas for operational improvement. This not only helps them build more resilient supply chains but also aligns with rising customer expectations and investor pressure for greater environmental accountability.
Businesses must not only adapt to regulation but engage constructively in the development of future standards. By contributing insights and maintaining dialogue with industry groups and policymakers, businesses can play a role in shaping a more coordinated, transparent framework for decarbonising global shipping.
Looking ahead
The carbon divide is set to disrupt global trade. As nations diverge in their approach to maritime decarbonisation, companies will increasingly find themselves navigating a fragmented landscape that distorts competition and complicates compliance. But fragmentation doesn’t have to mean paralysis.
By preparing now, engaging constructively, and embedding sustainability into supply chain strategy, businesses can not only mitigate risk but also help shape more stable and predictable conditions for global trade.
Without trust, AI cannot deliver on its full potential, leaving manufacturers hesitant to go beyond pilot projects, says Darren Falconer.
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It’s no secret that trust is the foundation for successful AI adoption. By addressing scepticism, prioritising data quality, and ensuring algorithms are explainable and auditable, AI can become a powerful force-multiplier in manufacturing operations.
Manufacturers are increasingly looking to AI to boost efficiency, streamline operations and automate routine tasks. 75% are planning to step up their AI spending in 2025. However, much of this attention is focused on Generative AI – something that we believe is poorly suited to factory settings.
Part of this misalignment stems from a lack of understanding of AI’s practical applications in industry. With only 7% of manufacturing leaders feeling “very knowledgeable” about AI applications, scepticism and trust issues loom large.
Feedback from vendors and end-users consistently points to trust as a leading barrier to adoption. Without trust, AI cannot deliver on its full potential. This leaves many manufacturers hesitant to go beyond pilot projects, XpertRule’s Technical Director, Darren Falconer explores this further.
Overcoming the AI ‘fear factor’
The portrayal of AI in the media has long been dominated by dystopian headlines and Hollywood blockbusters, with fears of mass unemployment and doomsday narratives. For manufacturers, this continuous, subliminal bombardment creates a trust deficit before any AI project even begins.
Business leaders are having to overcome not only technical hurdles but also the deep-seated scepticism that AI solutions are uncontrollable or inherently risky. To counter this, companies must approach AI with transparency and explainability at every stage, showing that AI is a tool to amplify human capability not replace it.
For a simple comparison, think about cruise control in a car. [within cars today,] Traditional cruise control maintains a set speed but that’s all. Compare that to adaptive cruise control, which considers real-time conditions, adapts to your driving preferences and responds intelligently. Similarly, AI in manufacturing must adapt to the unique needs and complexities of each operation.
For those implementing these systems, understanding the ‘mechanics’ – how algorithms interact with data inputs and external influences – is a vital part of building trust. Explainable AI bridges the gap between automation and operator oversight, providing a clear view of how the system reacts and adapts. This clarity increases confidence among users, fostering trust in AI’s outputs.
But of course, building trust also requires a mindset shift – from a data-centric focus to a decision-centric approach.
Trust starts with decisions, not data
A common misstep in AI adoption is starting with the data instead of focusing on the desired outcomes. Many manufacturers think, We have all this data – what can we do with it? However, this approach often leads to complex systems that lack focus, transparency, fail to deliver meaningful outcomes and reinforce doubt over AI’s value.
A decision-centric approach begins by asking, What do we want to achieve, and what decisions need to be made to deliver those outcomes? Only then should businesses ask, What data supports those decisions and what are the models linking these decisions to this data?
From there, manufacturers must focus on ensuring data quality – calibrating sensors, cleaning data streams, validating inputs and standardising formats. Remember, the vast majority of AI success lies in data preparation and only a small percentage in the modelling itself.
Imagine a manufacturer aiming to improve quality control. They might gather extensive data from every step of the production process to find possible defects, leading to an overwhelming volume of disjointed data with no clear path to action.
Using a decision-centric approach, they would:
Define the goal: Improve product quality and aim to reduce defects by 10% over the next quarter.
Identify key decisions: What factors directly impact product quality? What parameters should trigger quality checks? How can inspection processes be optimised to catch defects earlier? What actions should be taken when deviations are detected?
Use AI to model the outcomes: Build AI models that analyse historical production data , to discover explainable patterns relating outcomes to metrics like machine settings, material consistency or environmental conditions. The system can then use these models in real time to flag anomalies that indicate potential defects and recommend adjustments to maintain product quality.
This clarity in purpose makes AI implementations transparent, explainable and, ultimately, more trustworthy. It also provides a clear framework for measuring success, helping to build greater confidence from engineers, users and management alike.
Decision intelligence – the missing link
A key factor in building trust is recognising that AI doesn’t replace human insights and experience – quite the opposite. Human operators and engineers bring a level of expertise, contextual knowledge and intuition that machines cannot replicate. Having a ‘human in the loop’ is therefore critical to an AI system’s effectiveness.
Decision Intelligence connects Explainable AI principles with operational trustworthiness by embedding human oversight at its core. For example, experienced technicians possess knowledge built up over years of practice. While they can’t be everywhere at once, their expertise can be integrated into AI systems to automate routine decisions while reserving complex or ambiguous scenarios for human intervention.
This balance between human and machine intelligence ensures AI systems remain transparent, reliable and dynamic. It also enables manufacturers to scale the knowledge of their experts, reducing variability across shifts and locations while maintaining trust and accountability.
From pilots to trusted partner
For AI adoption to move from pilot projects to the heart of manufacturing operations, trust must come first. A decision-centric approach offers a practical pathway to achieve this, ensuring AI systems are transparent, aligned with business goals and designed to augment human expertise.
When manufacturers trust their AI systems, they can harness the technology’s full potential, creating new opportunities for efficiency, resilience and competitive advantage. Decision Intelligence becomes the connector between Explainable AI and operational trust, moving AI from being perceived as a risk to becoming a trusted partner.
A survey reveals that specific delivery slots and real-time tracking are now consumer expectations, with many willing to pay for predictability.
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A shift is underway in e-commerce delivery expectations with new research confirming a clear trend: consumers no longer tolerate uncertainty. Four-in-ten (40%) consumers now demand non-food home deliveries to arrive within a specific time slot. This is typically a two to three-hour window. This expectation climbs higher in key markets, reaching 44% in the UK and 43% in the US. The findings signal a clear power shift towards consumers seeking unprecedented control and transparency in their online shopping experience, forcing retailers and parcel carriers to adapt or risk falling behind.
The research, commissioned by Avery Dennison, a global materials science and digital identification solutions company, surveyed 5,000 consumers across the US, UK, France, and Germany. Findings from the survey — one of the largest of its kind — underscore a growing demand not only for on-time deliveries, but also for precise control over when, and how, parcels arrive.
A shift toward greater control
Although consumers today are more sensitive to cost than ever, six-in-ten (61%) shoppers are willing to pay a premium for more detailed insight into order tracking.
When asked what would justify payment for a premium delivery service (and invited to select ‘all that apply’), 47% stated faster delivery, making this the top overall choice, followed by 31% who said ‘accurate estimated delivery times.’
The survey also reveals that tracking expectations vary depending on the type of purchase. For example, 60% of respondents say parcel tracking is ‘very important’ when ordering electronics, 43% for fashion, and 38% for health and beauty.
Personal convenience is at stake. When asked to select up to three main benefits, the top reasons respondents gave for wanting enhanced tracking are:
Flexibility to leave the house without missing deliveries (54%)
Peace of mind knowing where the parcel is (54%)
Ensuring timely arrivals for special occasions like birthdays and anniversaries (44%)
To meet these exacting consumer demands, retailers and their logistics partners must act now or be left behind. Technology can assist in the drive to provide enhanced real-time visibility in the parcel delivery process.
Opportunity for elevated consumer satisfaction
For international e-commerce, real-time tracking has become even more critical as recent tariff changes disrupt cross-border shipping, causing extended delays and price increases.
Yet at the same time, cost remains a factor. According to McKinsey, 90% of consumers are willing to wait an extra two to three days if it means avoiding high shipping fees, highlighting a growing preference for flexible delivery options that balance speed with affordability.
“The message from consumers is loud and clear: they expect precision and control over their deliveries,” says Julie Vargas, Vice President and General Manager of Identification Solutions at Avery Dennison. “Customers may tolerate delays — but only if they’re kept in the loop. Real-time visibility shouldn’t be considered a luxury anymore; it’s the price of staying competitive. Retailers and carriers who embrace transparency will not only ease frustrations around shipping delays and rising costs, they’ll earn lasting customer trust in a tough logistics climate.”
Vargas adds: “There is a natural eagerness from retailers and carriers to cut down on expensive WISMO (where is my order) inquiries and manage costs more effectively. They recognise the benefits of providing self-service parcel tracking apps and tools powered by GPS and RFID technology, which ultimately help keep shipping rates affordable. Offering real-time updates on a package’s whereabouts is now a key foundation of this trust.”
Winning the parcel shipping game
Avery Dennison’s research also reveals that consumers find current tracking systems unreliable and insufficient. The most-cited frustrations are inaccurate notifications, inability to change delivery time or location, and premature ‘delivered’ status updates. Deploying intelligent labels at package-level helps vendors and distributors overcome these shortfalls in service.
Vargas concludes: “As the research highlights, to remain competitive in today’s e-commerce landscape, retailers and carriers must prioritise transparency and innovation in their delivery process. With almost two-thirds of shoppers willing to pay more for tracking and notifications, leveraging advanced technologies and offering real-time visibility is crucial. The pressure is very much on to address consumer needs, and turn frustrations into trust.”
Jorge Aguilar and Andy Prinz, supply chain experts at PA Consulting, discuss shapers vs. stallers.
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Volatility isn’t a shock to the system anymore – it is the system. Supply chains are absorbing more disruption than at any point in modern history, yet still expected to deliver flawlessly. Logistics lanes are being re-routed by international conflicts, cyber incidents, climate shocks, and policy shifts. The US tariffs and UK retail cyber-attacks are just some of the latest stand-out examples.
WTW’s recent Global Supply Chain Risk Survey reports that fewer than 8% of leaders believe they have complete control over their supply chain risks, and nearly two thirds continue to experience higher-than-expected supply chain losses. But against this backdrop, customers expect greater performance – instant service, total transparency, and zero excuses.
In this respect, dependable delivery isn’t a nice-to-have. It’s not even a differentiator. It’s the baseline for trust and growth. And in a world where so much is outside of businesses’ control, building systems that can still deliver when nothing else is stable is the new definition of good leadership.
Shapers vs. stallers
PA Consulting’s 2025 Brand Impact Index supports this. It found that the most successful brands – those with stronger growth, loyalty, and pricing power – are actively building the muscle to deliver dependably in the face of new shocks.
The study of 7,000 consumers and 360 major brands revealed these brands are ‘shapers’. Rather than just investing in front-end experiences, they’re transforming their operational back-end systems, re-engineering networks, and re-thinking supply chain models. These brands prioritise dependable delivery as the top investment area for growth in volatile markets.
At the other end of spectrum are ‘stallers’: brands stuck in reactive cycles, making quick fixes, and clinging to old supply chain assumptions. Notably, stallers are 1.6x less likely to plan for disruption and minimise the impact on customers.
Ask the right questions
So, how do businesses know where they fall? There are a few key questions companies should ask, starting with: is your planning designed to adapt or just explain what already went wrong? Sales and operations planning (S&OP) that can’t respond in real-time is a delay, rather than a decision-making tool.
More broadly, are you solving for yesterday’s world? If your network is still built on historic cost curves and old demand centres, what risks are you carrying forward without realising it? Do your suppliers extend your resilience or expose your gaps? And finally, is your automation unlocking flexibility, or scaling the wrong process? Technology is only useful if it makes you faster, smarter, or more stable.
These questions aren’t just philosophical; they’re what separate the leaders from the laggards in today’s market. The good news is that those falling behind don’t need to blindly guess the way forward. Rather, shapers are following a proven playbook, leveraging five clear levers to hardwire resilience, agility, and reliability into their supply chains.
Network design
First, it’s important to engineer multi-location networks that balance cost, service, and risk. The focus needs to be on proximity to demand, redundancy in key nodes, and the flexibility to shift under pressure.
BMW illustrates this well. During COVID-19, BMW redesigned its production footprint to manufacture closer to customers, reducing its exposure and increasing control at a time of global disruption. Its strategy focused on lowering risk in the upstream supply chain while increasing manufacturing in the countries where it sells cars.
In 2022, Oliver Zipse, BMW’s Chairman, shared that the company was producing over 430,000 cars in the US, 60% of which stayed in the market, alongside retaining a footprint in Central Europe and building up its presence in China. He claimed that this proximity to key markets, as well as flexibly increasing or decreasing production according to customer needs, was key to the company’s production success. This approach highlights that it isn’t about a perfect footprint, but rather having one that adapts when the map changes.
Dynamic planning
The monthly S&OP cycle can’t keep up, with Gartner research indicating that it is becoming ‘obsolete.’ Instead, shapers are treating planning as a continuous discipline, integrating signals, data, and cross-functional coordination to respond in real time. This isn’t about perfect predictions. It’s about responsive, multi-layered planning that sees around corners.
For example, Unilever has advanced its planning capabilities through an ‘always-on’ AI-powered forecasting model. It integrates market intelligence, sustainability constraints, forecast and actual sales data between Unilever and the customer to improve forecasting accuracy. Notably, the initial pilot with Walmart in Mexico increased product availability at point of sale to 98%. This approach has ultimately enabled Unilever to dynamically reallocate supply, adjust demand forecasts, and make financial and environmental trade-offs with speed and precision.
Design-to-value
‘Shapers’ are also surgical with cost, investing where it creates value and cutting where it doesn’t. This may sound simple, but in practice, it means design-to-value models aligned with what customers actually care about.
Just look at Hershey, which unlocked $35 million in hidden capacity using automation. This breakthrough came from applying advanced analytics and AI to its KitKat production network, which consists of six lines. Hershey discovered that simple changes in production scheduling and product mix could dramatically increase throughput, without much investment.
This kind of design-to-value mindset requires deep operational data, cross-functional visibility, and the discipline to say no to unnecessary complexity.
Supplier collaboration
Beyond this, traditional procurement models are increasingly shown to break under stress. Shapers build supplier ecosystems that share risk, diversify sourcing, and enable upstream visibility.
Procter & Gamble is a good example, as it has focused on supply chain transparency and agility by creating a digital control tower across its vast network of suppliers and partners. This connected infrastructure enables real-time monitoring, rapid risk response, and collaborative problem-solving when disruptions hit. It’s not just about oversight – it’s about coordinated resilience being built into the ecosystem. This stands the business in good stead to assess and respond to new shocks, such as the impact of the US tariffs.
Digital technology and automation
Finally, digitisation must do more than display data. It needs to enable control, speed, and adaptation.
Zillow is a case in point, having built an ecosystem that weaves AI and automation into every step of a consumer’s housing journey. It brings together a huge range of products and services under one umbrella through its ‘super app’, which enables renters, buyers, sellers, and real estate professionals to search, tour, finance, negotiate, and close on their housing journeys.
While not a traditional supply chain, it shows how tech-enabled orchestration can help bring consistency, speed, and reliability out of complexity. For operations leaders, the lesson is that automation matters when it makes the system stronger – not just faster.
Adapt to disruption
Disruption isn’t slowing down. But too many supply chains are still built for a world that no longer exists – optimised for predictability, driven by cost, and dependent on fragile assumptions. For supply chain leaders, the takeaway is simple: in a high-risk environment, the most strategic move isn’t to stabilise, it’s to reshape guided by a clear playbook.
Dependable delivery isn’t just about the physical movement of goods, but rather building in network flexibility, digital visibility, supplier transparency, dynamic planning, and resilience at every layer of the operation. More than ever, delivering reliably – under pressure, across borders – is what keeps businesses trusted and in motion.
Sylvain Rottier, General Manager at Tennant Company, explores how supply chain professionals are shoring up against labour shortages.
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Europe is facing an ongoing workforce crisis that demands major solutions, meaning business leaders can’t really afford to wait. The numbers are disconcerting: labour shortages across the European Union have grown from 1.7% in 2014 to 2.6% in the first quarter of 2024—a 53% increase that shows no signs of slowing.
Indeed, Europe’s demographic crisis seems to be accelerating, with projections indicating the continent will lose 95 million working-age people by 2050 compared to 2015 levels. For supply chain executives, this threatens operational continuity and competitive positioning.
The impact may vary dramatically across sectors, but few industries will feel the pressure more acutely than essential services like cleaning and facilities management. Annual turnover rates in janitorial services have reached 200-400%, creating a revolving door that diminishes institutional knowledge and operational effectiveness.
The impact beyond empty positions
Twenty-five percent of EU businesses now report production problems directly attributable to labour shortages, transforming what was once a staffing inconvenience into an operational constraint.
The financial implications are potentially severe. Companies experiencing 200% annual turnovers —unfortunately common in labour-intensive sectors—spend six-figure sums annually just on replacement hiring. This figure encompasses recruitment costs, training expenses, and the hidden price of reduced productivity during onboarding periods. However, these costs represent a small part of the problem.
Quality degradation becomes inevitable when organisations rely heavily on inexperienced workers. Higher error rates, missed cleaning protocols, equipment damage, and inconsistent service delivery damage customer satisfaction and brand reputation. In supply chain environments where precision and reliability are paramount, these quality issues can trigger costly disruptions throughout the entire network.
Perhaps most concerning is the competitive disadvantage that emerges when labour shortages force companies to reject new business opportunities. Constrained order books and inflated production costs create a vicious cycle where struggling organisations become less attractive employers, further exacerbating their staffing challenges.
From automation to intelligence
Traditional automation offered limited relief because it required extensive programming for specific tasks and was often an awkward-at-best fit for changing conditions. Today’s AI-enabled robotic systems represent a huge leap forward, delivering true operational intelligence that can learn and adapt, and also optimise performance in real-time.
Modern robotic platforms (such as BrainOS, which power Tennant AMR Machines) leverage machine learning algorithms to improve their performance based on environmental feedback and operational data. Unlike their predecessors, these systems can navigate complex, dynamic environments while avoiding obstacles, adjusting cleaning patterns based on usage data, and even predicting maintenance needs before equipment failures occur.
Integration capabilities have also come a long way. Contemporary AI-powered robots connect with existing warehouse management systems, inventory tracking platforms, and facility management software. This connectivity enables centralised monitoring, performance optimisation, and data-driven decision-making that extends far beyond the robots’ immediate task purpose.
The technology’s greatest advantage lies in its ability to maintain consistent performance standards. While human workers may struggle with fatigue, illness, or high turnover, AI-enabled robots deliver consistent results that enable accurate capacity planning and service level guarantees.
Implementation strategy
Successful AI-robotics deployment requires a shift in thinking from replacement to augmentation. The most effective implementations complement human capabilities rather than eliminate human roles entirely. This approach not only addresses practical concerns about workforce displacement but also maximises return on investment by leveraging the unique strengths of both human intelligence and artificial intelligence.
Smart organisations begin with pilot programmes that target specific, well-defined tasks within controlled environments. This approach allows teams to understand integration challenges, optimise workflows, and build internal expertise before scaling to full deployment. Critical success factors include ensuring compatibility with existing systems, establishing clear performance metrics, and maintaining open communication with affected workers throughout the transition.
The skills landscape is evolving rapidly, creating new job categories in real time. Rather than eliminating careers, thoughtful implementation transforms traditional roles into technology-empowered positions that offer greater career advancement potential and higher compensation. For sectors like cleaning services, which have long struggled with “dead-end job” perceptions, this transformation can meet turnover rates with higher-calibre talent.
Training programmes should prepare workers for collaborative environments where human judgment combines with robotic precision. These hybrid roles often prove more engaging and rewarding than traditional positions, creating career pathways that retain institutional knowledge while embracing technological advancement.
Building tomorrow’s competitive advantage
The demographic trends driving current labour shortages will intensify over the coming decades. Organisations that delay AI-robotics adoption risk falling behind competitors who embrace these technologies early and develop operational expertise while the market is still developing.
However, successful transformation requires more than technology acquisition. Companies must strike a balance between technological capabilities and the human touches that drive innovation, customer relationships, and adaptive problem-solving. The goal isn’t to create fully automated facilities but to build resilient, flexible operations that can weather demographic headwinds.
Leadership teams must think beyond immediate cost savings to consider long-term strategic positioning. AI-enabled robotics offers the foundation for sustained growth in an environment where traditional staffing models look increasingly untenable. Early adopters will develop competitive advantages that compound over time, while late movers may find themselves perpetually disadvantaged in both talent acquisition and operational efficiency.
The question isn’t whether AI-enabled robots will reshape supply chain operations—that transformation is already underway. The critical decision facing business leaders is whether they’ll proactively shape this evolution or reactively respond to competitive pressures once their options become more limited and expensive.
Europe’s demographic winter demands timely action. For forward-thinking supply chain executives, AI-enabled robotics represents not just a solution to current staffing challenges, but a strategic foundation for long-term competitive success in a potentially shaky marketplace.
Nigel Pekenc, Partner at Kearney, gives us insights provide insights on current key trends in supply chain, as well as his thoughts on nearshoring and reshoring.
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How are global supply chains evolving to become more resilient in the face of ongoing disruption, such as geopolitical shifts, raw material shortages, and logistics volatility?
“Supply chains are undergoing a fundamental shift from static, efficiency-led structures to adaptive, digitally managed ecosystems. Companies have moved beyond simply adding redundancy or diversifying suppliers. Instead, they are building globally distributed and closely connected networks, using real-time visibility and predictive analytics to spot vulnerabilities early and respond flexibly. Strong supplier partnerships in key locations and centralised digital control towers that compile multi-tier insights are now essential to manage disruptions ranging from geopolitical unrest to material shortages and transport breakdowns. The aim is no longer just resilience but adaptive responsiveness, enabling businesses to adjust their supply chains dynamically and in real time.”
Nearshoring continues to gain attention but rarely replaces full-scale global operations. How do you see companies striking the right balance between proximity, efficiency, and cost?
“Nearshoring has gained prominence, especially amid recent trade disruptions, but companies increasingly see it as part of a strategic mix rather than a full replacement. They strike the right balance by regionalising the most critical parts of the supply chain, particularly those sensitive to lead times, geopolitical risks, or local market demands, while continuing to source globally to maintain flexibility, secure essential inputs, and benefit from specialised production. This hybrid approach often takes the form of multi-node regional hubs connected by digitally coordinated networks. The key is segmenting the supply chain by disruption sensitivity, customer proximity and value-added stages, ensuring nearshoring delivers strategic value without adding unnecessary cost. This balance enhances responsiveness, optimises costs and mitigates risks.”
What role are technologies such as AI, automation, and digital twins playing in enabling smarter, more adaptive supply chain networks?
“AI, automation and digital twins have moved from buzzwords to essential pillars of responsive supply chains. AI-driven analytics process vast, complex data to provide predictive insights, enabling proactive action amid market shifts. Digital twins offer virtual replicas of supply networks for scenario testing and stress simulation before disruptions occur. Automation enables the rapid execution of these strategies through intelligent robotics, dynamic inventory control and agile manufacturing. Together, these technologies let supply chains anticipate and adapt to disruptions, turning agility from aspiration into reality.”
With supply chains becoming increasingly multi-tiered and complex, what strategies are proving most effective in maintaining control, visibility, and risk mitigation across networks?
“Complex, multi-tier supply chains demand more than standard digitisation; they require fully orchestrated digital ecosystems. Effective companies are establishing integrated digital control towers that deliver real-time transparency and decision-making clarity across all supply chain tiers, from raw materials to end-consumer distribution. Advanced data governance protocols ensure quality information flows seamlessly through well-defined channels. Moreover, clearly established risk categories aligned to decision-making tiers within organisations empower rapid, informed decision-making. In short, the combination of robust digital infrastructure, clear governance and aligned organisational structures is proving indispensable to maintain visibility, manage risk and achieve operational responsiveness at scale.”
Looking ahead, what long-term trends do you believe will define the future of supply chain strategy, and how can companies prepare to capitalize on them?
“The future of supply chain strategy will be defined by the interplay of continuous geopolitical fragmentation, accelerated regionalisation and persistent economic volatility. Companies must architect globally distributed, digitally empowered supply ecosystems that embed flexibility and optionality by design. AI-driven predictive tools and digitally enabled scenario planning will move to the centre of strategic supply chain management, allowing businesses to anticipate disruptions and shift resources dynamically and swiftly. Preparing for this future requires immediate investment in digital capabilities, organisational readiness for decentralised decision-making and development of flexible supplier ecosystems. Companies that proactively build these capabilities today will emerge with significant competitive advantages, able to thrive and seize market share in volatile global conditions while competitors falter.”
Mark Wilkinson, Senior Vice President for OpenText’s Global Business Network, discusses AI-driven success in supply chains.
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AI in industry
AI might be transforming industries, but its ability to drive accurate workflows relies on a foundation of reliable data. For those working with supply chains, this data can generate assessments of global circumstances and highlight upcoming disruption to operations before it’s felt by the consumer.
In the past year, extreme weather, trade disputes, and geopolitics have tested the limits of business preparedness. For example, in October 2024, it was estimated that the storms that hit Valencia caused damage to its farming industry worth almost £1bn. That includes the produce lost and the rendering of underlying infrastructure as unusable. As the impact of the climate crisis drives an increase in natural disasters, supply chains must prepare for widespread disruption.
Looking to 2026 and beyond, this trend is unlikely to change for the better. To best future-proof business processes, AI will be fundamental. But where should organisations start?
Which data is good enough?
High-quality, accurate data is important for driving AI success in supply chains and providing users with accurate predictions. This enthusiasm is reflected in the expectation that the big data market will be worth over £300 billion by 2028. Despite this significant investment, most organisations, surveyed across industries, still face data-quality issues.
At present, only 12% of data and analytics professionals believe that their company’s data is ready for AI adoption despite 76% recognising data-driven decision-making as a priority. To drive success in supply chains, this lack of readiness needs to change.
Data preparation
Though action must be taken to remedy these concerns, companies shouldn’t view the quality of their own data as a blocker to innovation. Instead, they can ‘test’ the data before using it to drive insights.
As a first step, it’s essential to identify the format and quality of existing data assets. With complete knowledge of all the information available, corporations can integrate AI tools that work with their data, instead of trying to fit it into incompatible solutions.
Next, team leaders must be certain that their employees are trained on noticing hallucinations and changing processes to ensure accurate AI forecasting. Creation of the right procedures will feed into a successful long-term data governance strategy, ensuring full value is extracted by AI tools.
For ongoing insights, directly reflecting global circumstances, data must be continually fed into AI systems. By setting up the extraction of data from a reliable platform, companies can ensure that the insights they receive directly correspond with the most pressing logistical concerns.
Incompatible sources
Strategic partnerships can bring essential expertise for agile transformation, helping companies to scale at speed and improve their assessment of risks. For instance, by integrating data from a partner organisation, visibility across the global logistics landscape will be increased. Concerns arise, however, when data is formatted differently at each company. To mitigate the chance of hallucinations, data-trained workers should be proactively advised to scan insights for duplicates, misspellings, and inaccurate information.
Visibility
For operational success amid an ever-changing global landscape, the importance of preparing and ‘cleaning’, data should not be understated. To ensure accurate insights are produced by AI tools, integrated solutions should be compatible with current data-formatting, proactively mitigating the chance of hallucinations. To derive full value, the same ‘cleaning’ procedure should be used for partner data. By taking the right steps at the beginning of the adoption journey, business leaders can drive effective insights, consistently being updated, to support future growth.
Tony Hasek, CEO and Co-Founder of Goldilock, explores the future of cybersecurity across the supply chain.
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As global supply chains are restructured in response to economic uncertainty, rising tariffs, and geopolitical pressure, a new cybersecurity dilemma is coming to the foreground. The number of cyberattacks exploiting supply chain vulnerabilities is surging. 45% of businesses are expected to face software supply chain attacks this year. With three major UK retailers falling victim to cyberattacks within just 10 days of each other, the need for rapid action is clearly emphasised.
To manage cost pressures, procurement complexity, and disruption risk, many businesses have spent the last few years consolidating suppliers. This means relying more heavily on a select few. But while this strategy may offer operational simplicity, it also introduces unforeseen cybersecurity risks.
When companies buy in bulk through a few key suppliers, it becomes harder to trace where individual components or services actually come from. The benefits of scale can quickly be outweighed by a lack of transparency. This creates openings for cyber threats – compromised hardware might be introduced without detection, unverified software and firmware can slip through, and oversight often breaks down across multiple layers of third-party subcontractor and vendor networks.
Recent geopolitical shifts in global trade have added a new layer of complexity, forcing companies to quickly move to new suppliers in different regions – often building entire supply chains from scratch. In this fast-changing environment, organisations must ask: are software-only cyber defences still enough?
Supply chain fragmentation is redefining risk
Over the past decade, cybersecurity strategy has largely focused on digital defences: intrusion detection systems, firewalls, endpoint protection, and role-based identity management. These are all essential, but they rest on the assumption that all components of an end-to-end system can be trusted or at least detected if they pose a threat.
As companies pivot to new vendors, particularly in critical infrastructure, telecommunications, and manufacturing, they inherit new digital dependencies often with little time or visibility to assess risk. A growing number of cyberattacks now originate, not from obvious threat actors, but from compromised supply chain components.
In a recent survey, it was found that 55% of global supply chain professionals use a mix of local and global IT solutions, resulting in fragmented systems that create multiple weak points for cybercriminals. These threats include routers shipped with hidden backdoors, firmware with embedded vulnerabilities, or software libraries poisoned long before deployment.
The infamous SolarWinds breach is a prime example where attackers injected malware into the company’s software build system for months before being detected. Because the malware was delivered through trusted channels, it didn’t appear as a breach to downstream customers – reinforcing the dangerous assumption that a well-known software supply chain couldn’t be compromised.
This is the challenge now facing every CIO and security lead. With the global supply web constantly shifting, the threat vector has moved upstream, and it’s becoming increasingly difficult to tell which components are compromised until it’s too late.
The blind spots in modern cybersecurity
Geopolitical pressures and economic instability have accelerated supplier diversification. As a result, organisations are often forced to onboard new hardware and software partners on compressed timelines. This leaves less room for thorough due diligence. The bigger challenge, however, is ensuring that pre-compromised components don’t make it through the door in the first place.
Modern cybersecurity tools excel at monitoring and responding to suspicious behaviour, but most still work reactively. If malicious code runs inside a network or access credentials are stolen, it’s up to the software to identify, isolate, and shut down the threat. This approach assumes detection happens quickly, before the attacker has had time to move deeper into the system.
Unfortunately, lateral movement – when attackers quietly expand their access across a network – is one of the most damaging and least understood stages of a cyberattack. Even a foothold in a non-critical system can lead to privilege escalation, data theft, and the compromise of sensitive environments. While software defences can slow this process, they often struggle to stop it entirely.
This is especially true in the case of state-sponsored attackers and advanced persistent threats (APTs), which use highly sophisticated methods and zero-day exploits that are designed to bypass detection or lie dormant until the right opportunity arises. If the initial breach comes from a trusted supply chain partner, it can slip under the radar for months hidden behind software that appears safe and behaves normally, until it’s too late.
Why physical isolation matters now
This is where physical network isolation enters the conversation. Not as a throwback to air-gapped systems of the past, but as a modern, strategic layer of defence. For years, organisations have used software-based methods like network segmentation and logical separation to compartmentalise systems. While valuable, these approaches are still vulnerable and can’t guarantee complete control. Physical connection control takes isolation further, enforcing a dynamic, hardware-based barrier – essentially a modern air-gap – that offers true separation and resilience against advanced threats and supply chain compromises.
At its core, physical network isolation does what software alone cannot. It completely severs the potential for any unauthorised communication. Systems can be placed entirely offline or connected only via out-of-band controls that are not susceptible to remote compromise. In other words, even if an attacker manages to breach a system or sneak in through a compromised component, they cannot pivot elsewhere because there’s simply nowhere to go.
In high-value environments, such as critical infrastructure, government networks, and financial systems, this approach is increasingly being revisited. The logic is simple: certain systems are too important to risk. They must be ringfenced, not just monitored.
Advances in control technologies now allow for dynamic physical disconnection. This enables systems to be securely reconnected for updates or access without maintaining constant exposure. It’s a modern interpretation of air-gapping, dynamic and perfectly adapted to today’s operational demands.
Resilient by design
A system that is physically unreachable provides a level of assurance that software-based defences alone cannot match. This makes physical isolation particularly valuable when built into supply chain security protocols. Systems receiving data or code from third-party vendors can remain physically segregated until fully verified, while backup infrastructure can stay completely offline until needed. Even control systems can be made unreachable from external networks, removing the risk of remote hijacking.
To be clear, physical isolation isn’t a silver bullet. But when it can be configured on demand, it becomes a critical layer in both threat mitigation and business continuity. It serves as a proactive first line of defence, a reactive last line of defence, and a practical way to limit the scope and timing of any potential attack.
In cybersecurity, layered defence is essential. Firewalls protect the perimeter, detection tools monitor activity, and identity systems control access. But if those are compromised, what’s left to protect the core?
Time to rethink what “secure” really means
As the digital and physical worlds become more intertwined, organisations must evolve their definition of cybersecurity. Only 30% of businesses report prioritising a secure, connected system for their supply chain. This indicates that more needs to be done. Software tools will always play a critical role, but they should not be the only line of defence. This is particularly true in an era where a single compromised component can trigger a cascade of consequences, all the way up to a network-wide breach.
Physical network isolation doesn’t replace modern cybersecurity, it reinforces it. In a future defined by volatility and hyperconnectivity, businesses must ask not just “can we detect threats?”. They also have to ask “can we better control them and contain them when detection fails?”
For those willing to embrace a multi-layered strategy that includes both virtual and physical controls, the answer will be yes.
We caught some precious time at Kinexions with Jennifer Dorsch, who outlines the transformation programme underway there.
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If ever there was a company that embodied the transformational spirit of Kinexions, it’s Syensqo, the Belgian multinational materials company. Established in December 2023, through the spin-off from Solvay, Syensqo is both emerging from its legacy company, whilst simultaneously transforming its operations during an era of unprecedented disruption. A challenging situation to say the least.
Jennifer Dorsch is the Global Head of Supply Chain Center of Excellence at Syensqo; a woman who by her own admission is “transformation driven” and skilled in operational leadership, process optimisation and leveraging technology to achieve best-in-class performance. She is seeking to spearhead global transformation initiatives, enhancing efficiency and growth through streamlined processes, systems and strategic simplification.
An inspirational leader
A results-oriented senior executive, and a former Supply Chain Excellence Director at Solvay, Dorsch has a proven record of leading high-performing teams, driving impactful change and delivering measurable results spanning the industrial, supply chain, and finance functions. “As Head of the Global Supply Chain Center of Excellence at Syensqo, I spearhead transformation of the E2E supply chain,” she explains, backstage at the Fairmont Hotel, Austin.
The core values of the CoE are based on creating an efficient and resilient supply chain through simplification, standardisation and harmonisation with efforts prioritised in support of company objectives. “We measure the benefits of transformation through supply chain improvements and cost savings and deploy effective change management strategies to ensure adoption of new systems and processes aimed at improving KPIs in support of company objectives,” she reveals. “We also created accountability in support of change management.”
Jennifer Dorsch, Global Head of Supply Chain Center of Excellence at Syensqo
Emerging from a legacy
Syensqo recently split from Solvay representing specialty chemicals while the commodity side remains Solvay. “The split of the company put us right into a transformation and the first challenge to be tackled was planning. And so we’re now using Kinaxis Maestro as a foundation for that. We’re taking it as an opportunity to bring all of our business units into a harmonised way of working through one platform. These are five business units that did things entirely differently. They didn’t even know who each other were and yet now they’re working together. This is quite transformational,” she enthuses.
Of course, there are challenges to implementing any kind of transformative program and change management nearly always tops the poll as the most demanding. “The hardest part is the change management. There were folks that couldn’t understand, couldn’t envision what it was going to be like. Everyone naturally feels that their way is unique and often don’t understand the other parts of the business. But change takes time. We had to create platforms for the teams to get together across the businesses to view the details because supply chain is very detail oriented. Supply chain professionals like to see the facts and to see how each other works in order to understand how valuable it would be for each of them to change the way they work to come together.”
According to Dorsch it’s vital to bring the people along with you on the journey. “It can’t be top down. They need to understand why and they need to feel it. However now there are more and more asking for it. Now they’re asking for Maestro and Kinaxis, which is great.”
Agility is key
So, how has Maestro enhanced agility and resilience and efficiency at Syensqo? “Well, it’s going to help us with the transparency, primarily. We will now have the information at our fingertips to make decisions in real time. We’ll be able to pull more of our planning upstream. Constraints realised further upstream in the planning relieves the pressure of the plant floor where it’s quite busy. The plant floor will be much, much calmer I would say.”
Maestro is also able to enhance the customer side too. “Our customers will certainly see a difference,” she reveals. “Our service levels will see a real improvement too. We’ll be making the right inventory and have it in the right place at the right time, ultimately improving business outcomes. Working capital and customer service will also improve.”
The people
A lot of what’s been happening at Kinexions is technologically rooted, but the power of people is also being stressed as vital in these major transformation projects. “Oh they are,” she affirms. “People are stressed. They need to feel protected. And the Kinaxis teams have done a very nice job of helping the teams feel supported by giving them examples of other companies that they’ve done this for. This lets them know it’s normal to feel stressed and to not be sure until you go live. However, you need to let them know that you’re there for them. The more examples they go through, the more comfortable the users feel. But it does take time.”
Disruptive and volatile as these times are, at least a platform such as Maestro gives users the ability to meet some of these daily challenges. “Yeah, it certainly does. I mean, the way we’re able to handle resiliency currently is that people have to work a lot harder. But the way we’re going to be able to handle resiliency going forward, when we have challenges, is going to be completely different because we’ll have such better transparency in our ability to react and respond. We will definitely adjust our focus onto using AI to make the decisions. All the routine decisions will be automated through AI and AI agents.”
So, what would Dorsch say to those supply chain leaders who have yet to make the leap into harnessing emerging technologies? “I would say think about the people that are working in the supply chain and improve their quality of life. The more you give them to make their jobs easier, the less stress there is on them. Let the system take the stress, not the people. It’s a way to retain your top talent. I would turn it more in that direction. Not to mention the fact that you get to improve outcomes for customers, financial statements, all of that, but crucially for your employees too.”
Kinaxis, the supply chain orchestration platform developer, is leveraging agentic AI in both its world-renowned Maestro platform and beyond. SupplyChain Strategy sat down with Andrew Bell, Chief Product Officer at Kinaxis, to learn more…
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Kinaxis’ Maestro is billed as an AI orchestration platform that revolutionises how supply chain leaders handle and use their data. Built upon three fundamental principles – supply chain data fabric, an intelligence engine, and the user experience – it serves to ease the challenge of gleaning actionable insights from broad data sets, as well as automating processes that are reliant on understanding shifts in that data.
Through AI, it’s a system that users can speak with: ask Maestro a question about your data, and it will give you an answer in real-time. The AI-powered system can also simulate an endless array of scenarios, massively enhancing supply chain leaders’ capacity to prepare for the future against a backdrop of regular and often-decisive volatility around the world. Keen to learn more about the ways in which the firm is leveraging agentic AI in both Maestro and beyond, SupplyChain Strategy sat down with Kinaxis’ Chief Product Officer, Andrew Bell, backstage at Kinexions 2025, to learn more.
The three AI disciplines
Before we get into the finer details, it’s important to understand what agentic AI is and where it sits in the growing family of AI-powered technologies poised to reshape the world. “For supply chain, our view is that there are three AI disciplines that are highly relevant to what we do,” explains Bell, fresh from delivering a fascinating keynote speech to the assembled global supply chain leaders gathered in Austin, on agentic AI. “The first was predictive AI with machine learning, the second, more recently, was generative AI. Continuing on from there would be agentic and autonomous AI.
“It’s not about any one of those on their own,” Bell continues, “but rather how they come together to deliver. When I think about agentic AI, it comes down to what we demonstrated in conference: the ability to chat with your data, to ask questions about your data, to get it presented to you however you want, all based on simple prompts. It’s actually a fusion of generative and agentic AI. There’s the agent that we built that works autonomously based on prompts from users; prompts that are then interpreted by the generative side.”
According to Bell, when it comes to agentic AI, the real differentiator is the notion that it operates on its own, that it operates autonomously as a result of a user prompt or data change conditions. “The idea is that it’s able to make its own decisions as it progresses through a problem; that’s what I find so powerful about it,” he enthuses. “That’s how it differentiates from other forms of automation.”
The democratisation of data
While concerns abound regarding the disruption AI could bring to workforces, namely in headcounts and the nature of their work, Bell stresses that this form of AI, as with the others, is at its best as an enabler rather than replacer. “The first thing to say is that AI on its own, especially in the supply chain space, is not going to solve our problems,” he explains. “It’s not going to deliver the value. Its real value is its democratisation of data access through the combination of the data with tools that have the ability to access and use that data, with AI sitting on top. Then I can get to my data more easily and more quickly, and so can anyone else approved to use the system.
“Users don’t need to learn a system, they don’t need to know how to navigate complex worksheets, set up filters and all the things you do in a traditional context. It means anybody, whether that’s an entry-level planner or a C-level executive can ask data-based questions, run a scenario or a simulation or execute something with less friction. I see it as a democratisation of the power of data and as an accelerant.”
That sense of democratisation extends beyond Kinaxis’ internal use and development of its agentic AI systems, with customers and partners joining the fold to inspire new and iterative action. “We’ve approached it by building an agentic framework first, and that allows for the creation of agents and the running and execution of agents,” Bell elaborates. “That’s step one. Now we’re building our own out-of-the-box agents on that framework, as well as opening that framework up to our customers so they can build their own agents. Customers know their business best, and there might be use cases that they want to apply an agent to that we haven’t thought of yet. They’ll now have the ability to do that.
“From there, we’re using our customers and the challenges they share with us to figure out what we can build or iterate upon next. We’ve started with the ‘chat with data’ agent. Because that was the number one thing: get me access to my data. The next thing is the ability to evaluate two options and execute a change. Merck, who we’re working with, shared an agent that essentially detects late supply and takes corrective action.”
Bell is evangelical regarding the adaptability of its AI framework, allowing agents to be used in isolation, or strung together. “It’s purely going to be based on the natural language prompt from the customer,” he reveals. “The framework will know all the different agents I have access to and so it can either do what the user is asking with those agents or suggest a combination of those agents.”
Data is the key
Data is the crux that all AI roads lead to and stem from. Without high-quality data, AI isn’t capable of delivering on its potential. Creating robust frameworks, exercising high levels of data hygiene, and structuring data stores in an AI-ready fashion are paramount in both the development of agentic AI and the application of those tools. For both developers and users, Bell stresses the fundamental importance of getting that data piece right. He notes, too, that its applicable advice no matter where individuals and organisations are in their AI journey. “There is the ability to start from any position on that journey,” says Bell. “It doesn’t have to be a big bang or a one-size-fits-all. No matter what, though, it is about the data. The agents, the automation, whatever it might be, is only going to be as good as the data that it can access.
“Step one is to understand the problems you’re looking to solve and figure out which data that system would need. We have capabilities that simply do exception reporting where you can implement predefined automations where your team has said ‘these are some processes that we execute on a regular basis, and we have the data, so automate it’. You can then move up the journey and say, ‘No, we’re ready to implement agents and we’re going to start using some proven native ones before going all the way to making our own.’’
“The good news is that some of the foundational requirements apply no matter where you start in the journey. Getting the data and having the right tools in place are going to benefit you across the whole journey. From Covid to more recent impediments to worldwide networks via trade war escalation, significant global interruptions and bottlenecks over the past several years have put enormous pressure on supply chains to adapt at pace. As far as disruptive influences go, agentic AI represents a welcome boon for those who can effectively wield its potential.”
“At Kinexions 2025, we had a presentation from ExxonMobil that noted how people typically think about disruptions as a negative thing, but our job is to build a supply chain that excels at managing those disruptions,” says Bell. “When we do, we have a competitive advantage. Our job at Kinaxis is to provide the tools, systems and capabilities to deliver that competitive advantage to our customers. Disruptions are going to occur. That’s a given. We don’t know what they might be, but they’re going to happen. If we’ve given you the ability to manage them effectively, that’s going to give you a strong competitive advantage.”
Diane Melul, Sanofi’s Head of Global Supply Planning, talks us through supply chain transformation at the pharmaceutical giant
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French multinational pharmaceutical leader Sanofi has quite the storied history. Having been the first global supplier of injectable polio vaccinations, it has a long-established reputation for driving disruptive, impactful and historic change.
Against a backdrop of volatility that has come to define the modern supply chain, Diane Melul, Sanofi’s Head of Global Supply Planning, is orchestrating a transformative strategy that will enhance the company’s supply chain rigor and flexibility while maximising its capacity for delivering its vital medicines to patients.
Speaking with SupplyChain Strategy at Kinexions 2025 in Austin, Texas, Melul hails the company’s digital twin solution as a turning point in creating an interconnected and robust global supply network.
Maestro enables Sanofi to simulate its global network across millions of hypothetical scenarios. The data and insights gleaned from the system have enhanced planning, agility, and integration across its supply chain network, and significant new efficiencies have been realised. Accuracy across planning has increased substantially, while real-time insights allow for optimised inventory management. The digital twin has also highlighted pain points across the production process, enabling targeted actions that have decreased process variability and reduced lead times across the cycle.
It’s a journey
“We started our journey something like eight years ago with the demand planning implementation, which has been quite successful,” says Melul. “We have around 110 markets and we’ve been deploying across all of them. So that was the first part, and then came the supply part, which is definitely more complicated to implement.
“One of the key points we’ve been learning is that effective integration is key across processes and the wider organisation. In recent implementations we’ve been working collaboratively across the business to ease the process, and we’ve been seeing much more adoption in everything because there’s clear interconnectivity.”
A key benefit for both supply chain and the wider business is the level of preparation that Maestro affords. Not only does its simulated scenarios provide crucial guidance for planning, but also for optimised reactions to surprise situations. “We love running these simulated scenarios,” continues Melul.
“That’s one of the benefits we’re getting across our complex network. We have around 40 manufacturing sites and we’ve got them connected with the markets and all the simulations we’re running. It’s allowing us to conduct a lot of parallel processing, and the decision making-process with regards to integrated business planning (IBP) is much easier than it was before we built this interconnection between different parts of the business through Maestro.”
Agility and resilience have also benefitted, especially where forecasting is concerned. “We also have a new process that will make sure we are more agile and reactive, with full visibility of the markets. As we have mapped manufacturing and markets, we can also get a full signal of what is coming next, the alerts, and how we can react. So that’s part of what we have embedded in our processes.”
Diane Melul, Sanofi’s Head of Global Supply Planning
A single source of truth
A considerable benefit to all of this is the establishment of a single source of truth that’s available across the global network, fostering greater accuracy but also stronger collaboration across what had been disparate and siloed business functions. “A single source of truth is really important,” Melul explains. “We are going beyond the supply chain, too, with a single source of truth that is transmitted through to finance teams and beyond.”
This heightened alignment allows for clearer and more confident decision-making, and greater communication across the business. Melul has overseen considerable efforts to ensure this opportunity for greater interconnectivity hasn’t gone to waste. “We have created strong standards, and we have to bring people together from across teams to work as one. Whether we’re talking about marketing, planning, site planners, supply planners, they’re all in the same team. It provides opportunities to learn from each other, and they have a sense of community that helps everyone to upskill and grow. That’s a big part of what we’re seeing.”
It’s not as simple as dropping a new tool in people’s laps and expecting seamless integration, of course, and Melul speaks candidly about the importance of managing such change effectively. “It’s a journey,” she says. “We have to make sure we are helping people to learn how to play with this tool, how to get the most out of it. We have to make sure they see the benefits, how it will positively impact their work, how it’ll impact our delivery for our patients, how it’s going to make sure that, every day, every time, our patients get their product on time.
“It’s really about making the link and showing them the end-to-end value where previous tools were not really giving us this visibility. Everyone was in their own silos, delivering to the next node without knowing what’s going next, and that’s no longer the case.”
Change management
It’s vitally important to create a sense of belief amongst teams when implementing tools like Maestro. Aligning process change, roles and responsibilities across the organisation and the tool is paramount, and Melul alludes to the sense that this groundwork can break the initial inertia that can be typical of these broad technological implementations. “We need to make sure we have strong and clear standards, that’s for sure, but we also need to listen to our people and make sure everything is aligned,” she explains. “People will then adopt the tool more readily when they see the value.
“Overall, that’s the philosophy we’re trying to get to: showing them the value, the use case, how others are doing. That’s the best way to really get motivation to go above and beyond to make use of new functionalities. You then don’t have to push so much.”
The implementation is not yet complete, with Sanofi’s vaccine manufacturing sites being the final frontier. For Melul, there’s excitement in being able to bring the learnings from the implementation thus far to this final stage. “It’s a long journey, but we’ve been learning, and we are targeting a bolder approach here to make sure we put everything together in one shot across vaccine manufacturing,” she enthuses. “That’s one of the learnings: the benefit comes quicker when the nodes are implemented in full. That’s what we’re targeting for the next implementation.”
The future
While that work is on the horizon, Melul’s attention stretches further. “Beyond that, we want to start investing more in artificial intelligence. We want to make sure we take advantage of new capabilities that can make the decision-making process more agile, to optimise the parameters, to get a proposal to override the master data. How are we doing in terms of inventory? Are we really setting the right parameters? Is the system capable of proposing something more interesting that could help us move in a new direction? That’s definitely the next stage for us after this implementation is complete.”
Here Melul demonstrates a forward-thinking mentality that has become essential to supply chain leaders in these challenging times. It’s a time where agility is vital, but also where huge opportunities have opened up for supply chain professionals to take a greater hand in broader strategic direction. “There is definitely less stability,” she agrees. “If you like having challenges to face and opportunities to find new solutions every day, it’s both interesting and a way to differentiate yourself. We have to find solutions every day.
“It’s interesting because there is no stasis; there is continuous reinvention. Maestro is a tool that will support all of this, but it’s not the only one. If we have everything in terms of process and tools working well, we can spend more time on being disruptive in the way we are working, we can be more disruptive in the approach and think outside of the box.
“In the last few years, with all these changes in the environment, we have learned how to be more disruptive in the way we approach the business, with positive and direct impact on the final business output: delivering for our patients. In the day-to-day, people want deliveries on time or sooner. Supply chain is making the difference, and we are playing a bigger role every day within the company. How can we make sure we deliver on those unexpected opportunities? How can the supply chain be more agile and be able to support those opportunities?
“We are seeing a real impact on business outcomes from that increased supply chain agility. I would say that the supply chain at Sanofi will continue to become more influential within the business. Sanofi’s evolution as a business means we will see the supply chain being more as an orchestrator, not only for the supply chain area, but for full end-to-end processes.”
For supply chain leaders looking to take on their own bold transformational projects, Melul’s advice is to make sure the foundations are properly laid. “First, of course, get strong master data,” she advises. “Make sure you go step by step. There will be a lot of ways to improve as you proceed. I believe that the adoption or transformation is easier when we get the time to explain where the benefits will be, and we can get simple initial plans that we can improve and enhance day after day. Our quick wins setup ensures we are prepared enough to proceed and move ahead to the next stage. The ambition can stay very high, but we need to make sure we have the step-by-step approach to work in an agile mode. And start simple, but start now!”
Lorenzo Romano, CEO of GCX Managed Services, explains the ways in which supply chain professionals can work around current challenges.
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The turbulence of 2025 has brought significant disruption to global supply chains, amplifying existing complexities and introducing new challenges. From a network management perspective, businesses are grappling with regional compliance standards, the security of third-party data and applications and the logistical difficulty of tracking assets worldwide, including in remote ‘dark spots’. These are no longer isolated technical concerns; they are central to business continuity and operational resilience.
Ongoing challenges, intensified by recent volatility, should prompt businesses to reassess their strategies. As cross-border operations become more critical, agility – both technological and strategic – will be essential to navigate shifting economic conditions. Those unable to adapt may find themselves facing further obstacles, especially those unable to differentiate or scale effectively. Reinforcing this point, research shows that 70% of businesses are planning to increase their investment in supply chain technology, driven by the promise of enhanced reporting, advanced analytics, improved system uptime and more seamless integration capabilities.
The role of MSPs in business resilience
Managed Service Providers (MSPs) are playing a pivotal role in helping businesses navigate this uncertainty. Their value extends beyond technical support to encompass strategic guidance and operational transformation. A recent Gartner study reveals that 61% of executives view technology as a key competitive advantage in supply chain operations, while 20% highlight the importance of emerging technologies in driving supply chain innovation. The report also emphasises the need to strengthen supplier relationships as a strategic priority.
In this context, MSPs are playing a pivotal role in helping organisations reassess and realign their supply chain strategies. They support efforts to diversify supplier networks, facilitate scalable technology adoption and cultivate strategic partnerships, all of which are essential for building resilience in the face of ongoing market volatility.
Securing the supply chain with Zero Trust
A key component of supply chain resilience is the adoption of a global Zero Trust framework. When supply chains span multiple jurisdictions and involve numerous third parties, traditional perimeter-based security models are no longer fit for purpose. Zero Trust continuously verifies every user, device and application, regardless of location, thereby minimising the risk of breaches and ensuring secure access to critical systems and data.
MSPs play a crucial role in implementing and maintaining these architectures, leveraging their established relationships with regional suppliers and vendors worldwide. This enables businesses to more effectively deploy Zero Trust frameworks and strengthen their defences against increasingly sophisticated threats.
Building ecosystems for long-term success
Success depends not only on technological infrastructure but also on the strength of a business’s vendor and partner ecosystem. MSPs contribute to building these by focusing on value-added services that go beyond traditional IT support. By cultivating collaborative relationships and aligning with partners who share a commitment to innovation and agility, businesses can better withstand disruption and maintain operational continuity.
While supply chain volatility is inevitable, it does not have to be debilitating. With the right blend of innovative technology, Zero Trust security and resilient partner ecosystems, businesses can remain agile and competitive. MSPs are central to this effort, helping organisations build the operational strength and adaptability needed to thrive. As 2025 continues to unfold, it will be the capacity for rapid adjustment and strategic foresight that defines long-term success.
SupplyChain Strategy sits down with Ronald Kleijwegt, CEO at Vinturas, to explore the impact of recent tariff changes and geopolitical disruptions on global supply chains.
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Donald Trump’s global trade war seems to be in a lull right now. Reciprocal tariffs between the US and China have paused, the US auto industry managed to compel the Trump administration to ease its levies on cars and vehicle components, and a successful trade deal between the UK and US has de-escalated transatlantic tensions somewhat. Friction between the US and EU, as well as with Canada to the north, remain high, however, and if there’s one thing the last four months have taught supply chain leaders, it’s that when it comes to the current US government, it’s unwise to take any amount of stability for granted.
To take stock — as well as to try and understand what supply chain leaders can do to navigate periods of intense disruption — SupplyChain Strategy sat down with Ronald Kleijwegt, CEO at Vinturas, a Netherlands-based company that develops supply chain network software intended to provide real-time end-to-end visibility for supply chain and logistics teams. While our discussion focused on the impact of recent tariff changes and geopolitical disruptions on supply chains Kleijwegt was keen to highlight the fact that supply chains have always dealt with unpredictability and pain points of one kind or another. Citing examples like the Fukushima earthquake and the Eyjafjallajökull ash cloud, Kleijwegt emphasised the importance of accurate data and technology for resilience to ensure that the supply chains of today survive to become tomorrow’s success stories.
SupplyChain Strategy: Ronald, could you help us set the stage a bit? I think it’s important to recognise that we’re operating in an increasingly unpredictable environment with a lot of pressures and headwinds. Then there’s always some specific context defining the exact moment we’re having these conversations. For example, in the last couple of days, we’ve seen restructuring in the US–China tariff relationship.
Still, uncertainty remains very high. Things are changing all the time. Could you give us a sense of where things currently stand with the latest tariff developments and what that means for organisations trying to stabilise their supply chains?
Ronald Kleijwegt: “Happy to. First of all, welcome to the world of supply chain! Maybe I’m getting a bit older, but like you said, today it’s about tariffs and trade relations with China. Tomorrow, it might be an earthquake somewhere in the world or another ash cloud grounding flights.
“Although I now run an IT software company, I spent most of my career managing large, complex supply chain operations globally. For example, I was deeply involved during the Fukushima earthquake, which had a massive impact due to sole sourcing of components in Japan. The same happened with the Icelandic ash cloud that shut down airspace.
“Now, we’re dealing with tariff changes in North America. There’s a 90-day grace period, but from a long-term supply chain management perspective, 90 days means very little. You’re still in reactive mode.
“Since COVID, the dynamics of global supply chains have intensified. Crises are no longer isolated—they’re overlapping and constant. To respond effectively, organisations need the right data and information, fast. With that, you can be agile and resilient.”
Ronald Kleijwegt, Vinturas CEO
SupplyChain Strategy:Absolutely. One other point is that these disruptions often bring ripple effects, like new regulatory hurdles or customs red tape. Could you speak to how organisations can deal with that increasing level of administrative complexity?
Ronald Kleijwegt: “It’s a good question, and the answer often depends on how governments choose to respond.
“In North America, for example, tariffs have been increased across the board. In my experience, it’s more effective when governments try to attract companies by offering incentives—like tax breaks or subsidies—not by creating blanket penalties.
“When I worked closely with governments, we had to educate them on how supply chains function. If you want to localise production, you need to lower duties on components and raise them on finished goods. That sounds obvious, but many countries still get it wrong.
“The US is now imposing tariffs across the board—including on components—which can be counterproductive. Then there’s the customs infrastructure. In some countries, like Germany, it’s still quite archaic, and delays in implementation disrupt supply chains even further. Policy decisions might be made at a boardroom level, but the operational side often lags far behind.
“A good example of a country doing things right is Morocco. They’ve successfully built a manufacturing ecosystem where over 65% of sourcing is local. This makes them highly competitive, especially with shipping access to South America and the US East Coast.
“Ultimately, companies can adapt to tariffs and regulatory shifts, but they need stability. You can’t build strategy around constantly shifting policies.
“At the end of the day, companies make decisions based on total landed cost, not just the price of production.
“Adidas, for example, adopted what they called Smart Manufacturing. Fast-moving products were produced closer to demand markets, while slower-moving items remained centralized, even if it meant slightly higher costs. It worked because the overall cost-efficiency improved.
“The problem isn’t just tariffs; it’s the constant change. You can’t build a company or strategy when the rules shift every 90 days.”
SupplyChain Strategy:Do you think we’ve entered a phase where economic policy is more deeply politicised?
Ronald Kleijwegt: “What we’re seeing in the US right now is pretty unprecedented.
“Historically, trade barriers and subsidies have always existed. Offshoring to China, for instance, was largely driven by subsidies that made manufacturing cheaper. Even the US took advantage of that.
“But politics and trade are now more openly intertwined. Still, even with sanctions—take Russia as an example—trade finds a way. Goods flow through Dubai, Turkey, Kazakhstan, and so on. You can’t stop trade entirely.”
SupplyChain Strategy: What do the next 12 to 18 months look like for supply chain organisations that want to improve visibility and resilience?
Ronald Kleijwegt: “We’re in an ongoing crisis environment—COVID, wars, trade issues. But one positive is that supply chain now has a seat at the boardroom table. That recognition is growing.
“Companies are also realising that visibility alone isn’t enough. They’re shifting from simple dashboards to full-scale network solutions that connect their entire ecosystem. That’s how you get high-quality data, and that’s how you make AI and automation work effectively.
“More companies are coming around. It’s not just about having the latest tech; it’s about transforming how supply chains operate.
“Change is coming. And, for those that embrace it, there’s a big opportunity.”
Cyrus Gilbert-Rolfe, Chief Commercial Officer at Kezzler, dives into how supply chain professionals can prepare for the future by standardising their data.
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In today’s world of fragmented value chains and increasing uncertainty, supply chain disruption is no longer an exception – it’s sadly, often, the norm. Whether due to global conflicts, climate events, pandemics, or regulatory pressure, businesses must now operate with agility and foresight. And at the heart of this transformation lies a simple but critical need: data.
More specifically, the ability to capture, share, and interpret granular supply chain data in real time is becoming a cornerstone of operational resilience, sustainability, and regulatory compliance. That’s where EPCIS 2.0, GS1’s visibility data standard, comes into play.
Unlike its predecessor, EPCIS 2.0 reflects the reality of modern supply chains. It supports richer, more structured data, enabling interoperable traceability across systems, stakeholders, and borders.
Digital traceability is no longer optional
The demand for traceability is growing exponentially. Consumers expect to know where their products come from, under what conditions they were made, and how they can be reused or recycled. Regulators, particularly in the EU, are implementing frameworks like the Digital Product Passport (DPP) to enforce such transparency.
These shifts introduce massive data requirements that legacy systems were never designed to handle. Fragmented systems, paper-based processes, and non-standard formats not only increase inefficiencies, but they also make compliance, sustainability, and recall management nearly impossible to scale.
EPCIS 2.0 is built to address this. It provides a common language for supply chain events, allowing businesses to capture detailed, event-based data such as where an item was shipped, under what temperature conditions, or which batch of raw material was used. This level of insight can be the difference between a swift product recall and a full-blown crisis.
From compliance to circularity: What EPCIS 2.0 enables
The relevance of EPCIS 2.0 extends far beyond compliance. Its core capabilities are based on capturing the ‘what, when, where, why, and how’ of each product movement or transformation, making it a foundational tool for the circular economy.
Sustainability: By embedding certifications, sustainability claims, and environmental data into digital events, companies can provide transparent proof of product provenance and lifecycle impacts.
Recall and risk management: When a problem arises, whether a contaminated food ingredient or faulty component, companies can immediately isolate and trace the affected batches, minimising financial and reputational damage.
Product lifecycle management: By tracking items from production through repair, resale, and recycling, EPCIS 2.0 supports extended producer responsibility and enables efficient returns or refurbishment programs.
Crucially, this level of traceability is achieved not through bespoke integrations or proprietary software, but through global standards, enabling seamless interoperability across borders and industries.
A real-world example: Building a data marketplace at scale
The journey toward end-to-end digital traceability can be complex. But when done right, the benefits extend far beyond logistics.
Take the case of Migros Group, Switzerland’s largest retailer. Facing challenges around fragmented data, inefficient returns processes, and lack of supply chain visibility, Migros set out to modernise its operations – not through piecemeal tools, but through the creation of a centralised Logistics Data Marketplace based on EPCIS 2.0.
This initiative involved:
Assigning unique digital identities to each returnable transport item (RTI), enabling precise tracking and reuse.
Automating data capture using RFID, which reduced reliance on manual entry and minimized errors.
Capturing EPCIS event data for key steps like aggregation, shipping, and receiving – allowing for full visibility of every batch, pallet, and shipment.
The result? Improved shelf availability, reduced waste, faster goods receiving, and a stronger foundation for sustainability reporting. Most notably, the data was not siloed – it was made available through a collaborative platform where all stakeholders, from manufacturers to distributors, could access the same real-time insights.
How supply chain leaders can prepare
While EPCIS 2.0 is technically advanced, its real power lies in its simplicity: using shared standards to enable shared visibility. But to implement it successfully, companies need to follow some strategic steps:
Start with your business problems: Whether it’s improving inventory accuracy, meeting regulatory demands, or enabling product take-back schemes, your use case should drive your data model – not the other way around.
Map your critical process steps: Identify where visibility matters most. For example, in a cold chain, temperature monitoring at transit points may be critical. In manufacturing, the transformation of raw materials into finished goods is key.
Model visibility events: Using EPCIS’s event types you can structure how each step is tracked, verified, and shared.
Use the Core Business Vocabulary (CBV): Adhering to standardised vocabulary ensures your data can be understood and used by partners and regulators alike.
Enable interoperability through Digital Link: Combining EPCIS 2.0 with the GS1 Digital Link standard allows serialized product data to be directly embedded into on-pack codes, creating a bridge between physical products and digital data.
Looking ahead: A foundation for resilience
The convergence of regulation, consumer expectation, and technology is changing how businesses think about supply chains. What was once an operational back end is now a strategic asset – central to reputation, revenue, and resilience.
By adopting EPCIS 2.0, companies are not simply responding to change – they are laying the groundwork for a future-ready infrastructure. This approach enables real-time, data-driven decision-making, facilitates transparent product journeys that help build consumer trust, and allows for faster, more accurate responses to disruptions. Additionally, it fosters smarter collaboration across supply chain networks, ensuring all stakeholders can operate with a shared understanding and greater agility.
The stakes are high, but the opportunity is greater. For those willing to embrace data standardisation and traceability, EPCIS 2.0 offers a clear and powerful path forward.
Since late 2015, N-SIDE has established and built on a strategic partnership with France-based pharmaceutical company Sanofi, aimed at optimising the firm’s clinical trial supply chain. The partnership helped digitalise Sanofi’s clinical supply chain while driving greater performance and waste reduction.
Harnessing efficiency
N-SIDE is a global leader in increasing the efficiency of life sciences and energy industries by providing software and services that optimise the use of natural resources, facilitating the transition to a more sustainable world. Founded in 2000, N-SIDE has built deep industry knowledge and technical expertise to help global pharmaceutical and energy companies anticipate, adapt, and optimise their decisions. In the life sciences industry, N-SIDE reduces waste in clinical trials, leading to more efficient, faster, and more sustainable clinical trials.
Amaury Jeandrain, Vice President Strategy of Life Sciences at N-SIDE, has witnessed first-hand the development of the partnership since he joined the company in January 2016. “Very quickly, the value of risk management and waste reduction was perceived internally and this partnership ended up growing to become one of our largest. Today, Sanofi is the company at the forefront of a lot of the innovation co-created with N-SIDE.”
Amaury Jeandrain, Vice President Strategy of Life Sciences at N-SIDE
Pharmaceutical companies of varying sizes use N-SIDE solutions to avoid supply chain bottlenecks in their clinical trials, decrease risks and waste, control costs, reduce time-to-market and speed up the launch of new trials. N-SIDE’s focus is on four key pillars to bring high levels of efficiency into Sanofi’s clinical supply chain: best-in-class supply chain, people, analytics and innovation.
Charlotte Tannier, Vice President of Life Sciences Services at N-SIDE, adds that the key differentiator is the transparency between her organisation and Sanofi. “We trust each other and know that we can be fully open with them,” she explains. “We like to build new things together and co-develop innovative solutions.”
Charlotte Tannier, Vice President of Life Sciences Services at N-SIDE
Teaming with Sanofi
Having defined a clear route to success through the Sanofi partnership, Amaury is keen to point out that the relationship has acted as something of a catalyst for future business collaborations with other companies. “There are a lot of good practices that were initiated with Sanofi that now became a standard in our industry,” he discusses.
Looking ahead, the future of the partnership looks bright and is showing no signs of slowing down. Charlotte explains that the next step is all about “integration.” “For the moment, we have multiple teams and departments that are using the N-SIDE solutions, and many other software are used as well within the organisation. The focus in the short term will be to enable a unified IT landscape and environment,” she reveals. “The objective will be to be fully integrated and to increase the impact of the data they own. Because we believe, with Sanofi, that the way forward is through data. We are also planning to help Sanofi leverage more of the data that we’re generating together to increase its impact.”
As technology continues to evolve and organisations become even more digitally mature, partnerships built on transparency and trust will be in demand. N-SIDE and Sanofi already have that head start.
Click hereto read more about how Sanofi is driving data-driven performance, resilience, agility and operational excellence within the clinical supply chain.
Our cover story this month focuses on the work of Arianne Gallagher-Welcher. As the Executive Director for the USDA Digital…
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Our cover story this month focuses on the work of Arianne Gallagher-Welcher. As the Executive Director for the USDA Digital Service, in the Office of the OCIO, her team’s mission is to drive a tech transformation at the USDA. The goal is to better serve the American people across all of its 50 states.
Welcome to the latest issue of Interface magazine!
Welcome to a new year of possibility where technology meets business at the interface of change…
“We knew that in order for us to deliver what we needed for our stakeholders, we needed to be flexible – and that has trickled down from our senior leaders.” Arianne Gallagher-Welcher, Executive Director for the USDA Digital Service reveals the strategic plan’s first goal. Above all, the aim is to deliver customer-centric IT so farmers, producers, and families can find dealing with USDA as easy as using an ATM.
BCX: Delivering insights & intelligence across the Data & AI value chain
We also sat down with Stefan Steffen,Executive Leader for Data Insights & Intelligence at BCX. He revealed how BCX is leveraging AI to strategically transform businesses and drive their growth. “Our commitment to leveraging data and AI to drive innovation harnesses the power of technology to unlock new opportunities, drive efficiency, and enhance competitiveness for our clients.”
Momentum Multiply: A culture-driven digital transformation for wellness
Multiply Inspire & Engage is a new offering from leading South African insurance provider Momentum Health Solutions. Furthermore, it is the first digital wellness rewards program in South Africa to balance mental health and physical health in pursuing holistic wellness. CIO, Ndibulele Mqoboli, discusses re-platforming, cloud migrations, and building a culture of ownership, responsibility, and continuous improvement.
Clark County: Creating collaboration for the benefit of residents
Navigating the world of local government can be a minefield of red tape, both for citizens and those working within it. Al Pitts, Deputy CIO of Clark County, talks to us about the organisation’s IT transformation. He explains why collaboration is key to support residents. “We have found our new Clark County – ‘Together for Better’ – is a great way to collaborate on new solutions.”
Also in this issue, we hear from Alibaba’s European GM Jijay Shen on why digitalisation can be a driving force for SMEs. We learn how businesses can get cybersecurity right with KnowBe4 and analyse the rise of ‘The Mobility Society’.
Timothy Woodcock, Director of Procurement at CordenPharma, discusses the new wave of change following acquisition and amid transformation
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We have a bumper issue of fascinating exclusives this month!
Corden Pharma: Powering Change
Timothy Woodcock, Director of Procurement at CordenPharma, discusses the new wave of change following acquisition and amid transformation
Change is here, get busy. Indeed, some organisations are further along a transformation journey than others. For CordenPharma, a Contract Development and Manufacturing Organisation (CDMO) partner, they are right on track.
CordenPharma supports biotech and pharma innovators of complex modalities in the advancement of their drug development lifecycle. Harnessing the collective expertise of the teams across its globally integrated facility network, CordenPharma provides bespoke outsourcing services spanning the complete supply chain, from early clinical-phase development to commercialisation. Recognised as a key partner to the pharma industry, CordenPharma provides state-of-the-art know-how, an integrated product offering end-to-end capabilities from early-stage development to commercial large-scale manufacturing.
A closer look
Timothy Woodcock has been the Director of Procurement at CordenPharma since October 2022 and is based in Basel, Switzerland. He explains that since joining over a year ago, while it was a “good start”, he admits to discovering some surprises after closer inspection. “There was a lot of information to get to grips with at the start and it was spread wide and thin,” he tells us. “But the team is certainly key and they have helped me pull it together through solid collaboration and engagement. Of course, there were a few surprises in the process realm, but that’s what makes this challenge so interesting to me.”
carbmee: Carbon management for complex supply chains
Prof. Dr. Christian Heinrich, Co-Founder at carbmee, discusses his organisation’s journey to being the trusted solution provider for carbon management.
carbmee means carbon excellence for complex supply chains. It is the carbon management solution for automotive, manufacturing, chemical, pharmaceuticals, medtech, hi-tech, logistics, and FMCG industries. Whether to assess emissions holistically throughout the entire company, product or suppliers, carbmee EIS™ platform can create the transparency required for uncovering optimal emissions reduction potential and at the same time, stay compliant with upcoming regulations like CBAM.
carbmee’s journey
Christian Heinrich has been the Co-Founder at the organisation since January 2021. While some executives end up in procurement and supply chain by mistake, for Heinrich he affirms it was “always” the industry for him. As far as he’s concerned, collaboration is a big piece of the puzzle and Heinrich points to his diverse experience in a range of different industries and sectors which have helped him along the way to forming carbmee.
“This was actually one of the reasons my co-founder Robin Spickers asked me to leverage my supply chain knowledge,” he says. “Robin had expertise in sustainability areas like Product LifeCycle Assessments and I had that in procurement and supply chain. We connected together and created carbmee to have scope 1, 2 and 3 solutions for carbon accounting and carbon reduction, which also combines the lifecycle analysis.”
Zorana Subasic, Director SEERU & PSCoE Cluster Procurement at Hemofarm A.D. reveals how a glocal approach is transforming procurement at the pharmaceutical…
Zorana Subasic is all about people. She heads up procurement for Hemofarm, the largest Serbian exporter of medicinal products, with a share of more than 70% of the total pharmaceutical. It sells pharmaceutical products on four continents in 34 states and, since 2006, has been part of the multi-national pharmaceutical giant STADA Group.
Meeting the challenges
Zorana explains that her priority is focusing on people, both within her team and in the wider company, a priority that has been even more important during the last few challenging years and has impacted her leadership style. ”These are areas that were new for me – managing people in ‘business as usual’ times is completely different to what we’ve been through in the last two or three years. It has affected people, and how it was for me to manage people in difficult times – understanding the challenges around us and making sure that people also understand the challenges.”
Onur Dogay, CPO at Elon Group, reflects on a year of procurement evolution and making the function an indispensable partner to the organisation…
A lot can happen in a year. Just ask Onur Dogay. In late summer 2022 he arrived in Sweden from his native Turkey to take the helm of a complex and evolving procurement environment at Elon Group AB, the Nordic region’s leading voluntary trade chain for home and electronic products. That he joined just a month after a significant merger that cemented the company’s market-leading position was no coincidence. Rather, Dogay was brought on board with a specific mission: use his industry experience and passion for transforming procurement to sustain the company’s market status while spearheading growth in new areas of retail and electronics.
And he hasn’t slowed down since. In little over 12 months, Dogay has overseen a procurement evolution that includes setting a new data strategy that’s aligned with the broader company vision, shifting procurement’s role to be less transactional and more of a strategic business partner, improving communication and partnerships both internally and externally with suppliers, and overseeing the greater use of data and technology to enhance forecasting and planning capabilities.
A seasoned procurement professional
A glance at Dogay’s CV to date leaves little surprise at his success. He is a seasoned procurement professional, with more than 20 years’ experience in procurement leadership positions working across internationally dispersed teams in Europe. “My background is particularly strong in retail, consumer electronics, telecom, and IT business units,” he explains, “including at Arcelik, one of the world’s largest manufacturing companies, and also for one of the biggest retailers in Europe, MediaMarkt. At the time of the merger in 2022 here at Elon Group, this experience, as well as the good relationships I had with many of the suppliers and brands we work with now, was the perfect match for the company.”
Microsoft: A sustainable supply chain transformation
In the past four years, Microsoft has gained more than 80,000 productivity hours and avoided hundreds of millions in costs. Did you miss that? That’s probably because these massive improvements took place behind the scenes as the technology giant moved to turn SC management into a major force driving efficiencies, enabling growth, and bringing the company closer to its sustainability goals.
An exciting time
Expect changes and outcomes to continue as Dhaval Desai continues to apply the learnings from the Devices Supply Chain transformation – think Xbox, Surface, VR and PC accessories and cross-industry experiences and another to the fast-growing Cloud supply chain where demand for Azure is surging. As the Principal Group Software Engineering Manager, Desai is part of the Supply Chain Engineering organisation, the global team of architects, managers, and engineers in the US, Europe, and India tasked with developing a platform and capabilities to power supply chains across Microsoft. It’s an exciting time. Desai’s staff has already quadrupled since he joined Microsoft in 2021, and it’s still growing. Within the company, he’s on the cutting edge of technology innovation testing generative AI solutions. “We are actively learning how to improve it and move forward,” he tells us.
Our final cover story for 2023 explores how Deputy CIO May Cheng is accelerating a digital customer and product-centric approach…
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Our final cover story for 2023 explores how Deputy CIO May Cheng is accelerating a digital customer and product-centric approach to IT management for the International Trade Administration (ITA).
Welcome to the latest issueof Interface magazine!
Interface showcases leaders at the forefront of innovation with digital technologies transforming myriad industries.
We connect once more with the tech trailblazers at the International Trade Administration. Deputy CIO May Cheng and her team areaccelerating adoption of ITA’s customer and product-centric approach to IT management. In addition, their focus is on Agile, DevSecOps, Value Proposition, and Human Centred Design. “In 2023, we launched 13 products, three MVPs and saw enhancements operationalised. Moreover, the digital model has enabled a partnership between business and IT. The result is clearer lines of shared responsibility, transparency in resources, and a continuous learning culture across the agency.”
Businessman touching data analytics process system with KPI financial charts, dashboard of stock and marketing on virtual interface. With American flag in background.
Royal Papworth Hospital NHS Trust: Digitally transforming patient care
The Royal Papworth Hospital NHS Foundation Trustis centred on bringing tomorrow’s treatments to today’s patients with a clear mission to provide excellent, specialist care to patients suffering from heart and lung disease. We hear from Andrew Raynes who took up his role as CIO in 2017. He is overseeing a digital transformation program bringing value to staff and patients. “Using the global language of interoperability… we’ll see greater efficiency in terms of use of technology and sweating our assets. Furthermore, exploiting the benefits to support seamless care by allowing standards to do the heavy lifting.”
Toronto Community Housing: Supporting tenants with tech
Toronto Community Housing houses tenants in 106 of Toronto’s 158 neighbourhoods. It ensures over 43,000 low and moderate-income families are supported in their continuously managed homes. Luisa Andrews, VP Information Technology Services tells us it’s the best role she’s had in her career. “It’s the most challenging, and where I’ve seen the most progress in a short amount of time. I’m proud of my team and what we’ve accomplished in five years. We, and our partners, have enabled the corporation, through technology, to do what it needs to do for our tenants.”
Marshfield Clinic Health System:
Marshfield Clinic Health System provides care at over 50 locations across the US state of Wisconsin. Chief Data & Analytics Officer Mitchell Kwiatkowski explains its tech mantra to us: “We’re trying to toe that line while examining new technologies as they come out. We’re aiming to understand what they are, how they can help, and implementing things that are mature enough and show promise. I don’t think healthcare is necessarily risk-averse; it’s a highly regulated area that doesn’t always have deep pockets for investment. However, it’s people’s health at stake, so we have to be careful…”
Also in this issue, we get the lowdown on the tech trends for 2024 from Hitachi Vantara innovation guru Bjorn Andersson. We also hear from the WatchGuard Threat Lab research team with their cybersecurity predictions for the year ahead.
A passionate advocate for diversity, inclusion and equity of opportunity, Executive GM Ana Marinkovic leadsa team of 1,600+ small business experts. They lend over $1.2bn a month to Australian small businesses. National Australia Bank (NAB) plays a major role in propelling entrepreneurship across the country. Delivering better outcomes for small business owners sits at the very heart of NAB’s strategy. “Our scale and connectivity help us to tackle some of the biggest challenges facing our business and the communities we operate in,” says Ana.
TUI: Making travel plans mobile
The mobile side of TUI has never been more vital. TUI’s mobile apps were officially launched in 2013 and began as something of a proof of concept. For the entire international industry, moving from web to mobile devices was a huge shift. The initial set of apps were very skeletal and only integrated for UK and Nordic customers.
One of this year’s goals is to accelerate the native journey to make all the customer journeys native. This will further improving the customer experience. After a recent UI refresh, the app look and feel is fresh and sleek, and has plenty of exciting features for customers to enjoy. “Just in the last couple of months we’ve introduced an integration with OpenAI for a travel planner that helps you choose excursions,” Donia adds. “Seeing it grow over the years is so exciting.”
TARA Energy Services: tech fuelling growth
“Continuous improvement is woven into the fabric of the culture at TARA Energy Services,” says its proud Director of IT, Paul Parzen. “Every day, we face new challenges, both operationally in the field and strategically in the boardroom. We must make sure the organisation’s IT strategy for data management, core infrastructure, network architecture, and security is ready to meet them.”
Link Group: Shaking up UK’s pension market via digitalisation
“Some people might say, ‘wow, a pension. That sounds a little boring.’ But at the end of the day, what we do is help people retire in the best way possible and that’s a pretty good place to be.”
Those are the words of Dee McGrath, CEO of Link Group’s Retirement Solutions since May 2019. The company is a global, digitally-enabled business connecting millions of people with their pension assets – safely, securely and responsibly.
Evara Health: Technology delivering care for all
Evara Health’s mission statement is to help people become healthy and live healthy lives, and that means all people. A lot of health organisations don’t serve everybody and their treatments aren’t available under many types of insurance. However, Evara Heath doesn’t turn anybody away. It supports the underserved and the uninsured, and patients are treated regardless of whether they can afford it. Around 25% of patients have no insurance at all, and over half are covered by Medicaid, which isn’t accepted by everyone.
A passionate advocate for diversity, inclusion and equity of opportunity, Executive GM Ana Marinkovic leadsa team of 1,600+ small business experts. They lend over $1.2bn a month to Australian small businesses. National Australia Bank (NAB) plays a major role in propelling entrepreneurship across the country. Delivering better outcomes for small business owners sits at the very heart of NAB’s strategy. “Our scale and connectivity help us to tackle some of the biggest challenges facing our business and the communities we operate in,” says Ana.
TUI: Making travel plans mobile
The mobile side of TUI has never been more vital. TUI’s mobile apps were officially launched in 2013 and began as something of a proof of concept. For the entire international industry, moving from web to mobile devices was a huge shift. The initial set of apps were very skeletal and only integrated for UK and Nordic customers.
One of this year’s goals is to accelerate the native journey to make all the customer journeys native. This will further improving the customer experience. After a recent UI refresh, the app look and feel is fresh and sleek, and has plenty of exciting features for customers to enjoy. “Just in the last couple of months we’ve introduced an integration with OpenAI for a travel planner that helps you choose excursions,” Donia adds. “Seeing it grow over the years is so exciting.”
TARA Energy Services: tech fuelling growth
“Continuous improvement is woven into the fabric of the culture at TARA Energy Services,” says its proud Director of IT, Paul Parzen. “Every day, we face new challenges, both operationally in the field and strategically in the boardroom. We must make sure the organisation’s IT strategy for data management, core infrastructure, network architecture, and security is ready to meet them.”
Link Group: Shaking up UK’s pension market via digitalisation
“Some people might say, ‘wow, a pension. That sounds a little boring.’ But at the end of the day, what we do is help people retire in the best way possible and that’s a pretty good place to be.”
Those are the words of Dee McGrath, CEO of Link Group’s Retirement Solutions since May 2019. The company is a global, digitally-enabled business connecting millions of people with their pension assets – safely, securely and responsibly.
Evara Health: Technology delivering care for all
Evara Health’s mission statement is to help people become healthy and live healthy lives, and that means all people. A lot of health organisations don’t serve everybody and their treatments aren’t available under many types of insurance. However, Evara Heath doesn’t turn anybody away. It supports the underserved and the uninsured, and patients are treated regardless of whether they can afford it. Around 25% of patients have no insurance at all, and over half are covered by Medicaid, which isn’t accepted by everyone.
Cybersecurity leader Shinesa Cambric on Microsoft’s innovation journey to identify, detect, protect, and respond to emerging threats against identity and access
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This month’s cover story highlights a cybersecurity program protecting billions of users.
Welcome to the latest issueof Interface magazine!
Interface showcases leaders at the forefront of innovation with digital technologies transforming myriad industries.
Shinesa Cambric is on a mission to drive innovation for cybersecurity at Microsoft. Moreover, by embracing diversity and opening all channels towards collaboration her team tackles anti-abuse and delivers fraud-defence. Continuous Improvement doesn’t just play into her role, it defines it…
“In the fraud and abuse space, attackers are constantly trying to identify ways to look like a legitimate user,” warns Shinesa. “And this means my team, and our partners, have to continuously adapt. We identify new patterns and behaviours to detect fraudsters. At the same time, we must do it in such a way we don’t impact our truly ‘good’ and legitimate users. Microsoft is a global consumer business and any time you add friction or an unpleasant experience for a consumer, you risk losing them, their business and potentially their trust. My team’s work sits on the very edge of the account sign up and sign in process. We are essentially the first touch within the customer funnel for Microsoft – a multi-billion dollar company.”
ABB: Digital Technolgies contributing towards Net Zero
Nigel Greatorex, Global Industry Manager for Carbon Capture and Storage (CCS) at ABB Energy Industries, explains how digital technologies can play a critical role in the transition to a low carbon world. He highlights the role of CCS in enabling global emissions reductions and how challenges can be overcome through digitalisation…
“It is widely recognised decarbonisation is essential to achieving net zero emissions by 2050. Therefore, it’s not surprising that emerging decarbonisation technology is becoming an increasingly important, and rapidly growing market.”
CSI: How can your IT estate improve its sustainability?
Andy Dunn, Chief Revenue Officer at IT solutions specialist CSI, reveals how digital technologies can contribute to ESG obligations: “Sustainability is a now seen as a strategic business imperative, so much so that 74% of companies consider Environmental, Social and Governance (ESG) factors to be very important to the value of their company. Additionally, we know almost three in four organisations have set a net zero goal. With an average target date of 2044, 50% of organisations are seeking more energy efficient products and services.”
https://www.youtube.com/watch?v=tsDaZiSO1ho
“Optimising energy use and consolidating servers and storage infrastructure form a strong basis for shaping a more environmentally friendly and efficient IT estate. It no longer needs to be the Achilles Heel of an ESG policy. “
Mia Platform: Sustainable Cloud Computing
Davide Bianchi, Senior Technical Lead at Mia Platform, explores the silver lining of sustainable cloud computing. He reveals how it can help us reduce our digital carbon thumbprint with collaboration, efficient use of applications, containerisation of apps, microservices and green partnerships.
“We’re already on an important technological path toward ubiquitous cloud computing. Correspondingly, this brings incredible long-term benefits too. These include greater scalability, improved data storage, and quicker application deployment, to name a few.”
Also in this issue, we hear from Doug Laney, Innovation Fellow at West Monroe and author of Infonomics and Data Juice. Also, we learn how companies can measure, manage and monetise to realise the potential of their data. And, Deputy CIO Melvin Brown discusses the people-centric approach to IT supporting America’s civil service at The Office of Personnel Management (OPM).
Doug Laney is Innovation Fellow at West Monroe and a leading Data & Analytics strategist. We caught up with the author of Infonomics and Data Juice to talk tech and how companies can measure, manage and monetise to realise the potential of their data
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Our cover story explores the rise of data and information as an asset.
Welcome to the latest issueof Interface magazine!
Interface showcases leadersaiming to take advantage of data, particularly in a new world of AI technologies where it is the fuel…
How to monetise, manage and measure data as an asset
Our cover star is pretty big in the world of analytics… We meet the guy who defined Big Data. Doug Laney is Innovation Fellow at West Monroe and a leading Data & Analytics strategist. We caught up with the author of Infonomics and Data Juice to talk tech and learn how companies can measure, manage and monetise to realise the potential of their information. In his first book Laney advised companies to stop being fixated on hindsight-oriented analytics. “It doesn’t actually move the needle on the business. In the stories I’ve compiled over the last decade, 98% have more to do with organisations using data to diagnose, predict, prescribe or automate something. It’s not about asking questions about what happened in the past.”
Canvas Worldwide: A data-driven media business
Continuing this month’s data theme, we also spoke with Alisa Ben, SVP, Head of Analytics at full-service media agency Canvas Worldwide. Data has transformed the organisation, and what its clients do. “We look holistically at the client’s business and sometimes the tools we have might be right for them, sometimes not. It’s more about helping our clients achieve their business outcomes.”
TUI Musement: from digital transformation to digital pioneer
At travel giant TUI, handling data effectively is paramount when communicating consistently and meaningfully with up to 25 million customers annually. David Garcia, CIO for TUI Musement, talks about the tech evolution driving the travel giant’s provision of experiences, transfers and tours. It’s a big part of its operational shift from local to global. “As a CIO, I’ve always been interested in how the tech innovations we drive can support the business and add value.”
Hiscox: making cybersecurity more accessible
Liz Banbury, CISO at Hiscox and president of (ISC)² London Chapter, talks to us about how cybersecurity can become a more accessible, realistic career path for almost anybody. “When I was at school, topics like computer science didn’t even exist,” Banbury explains. “In one of my first jobs, over in Hong Kong, we were still using a typewriter! A lot has changed. My key point here is that there’s a lot of cybersecurity professionals who are really good at their job. They are inspiring, and have come from all walks of life. Crucially, they don’t have a maths, computer science, or technological background at all. But they still make great cybersecurity professionals.
Portland Community College: Risk vs Speed in Cybersecurity
Reet Kaur, former Chief Information Security Officer at Portland Community College, discusses the organisation’s transition to the cloud amid a digital transformation journey. “I don’t want to work with people who just say yes all the time. I want my ideas challenged to help forge the excellence in the security programmes I help build.”
DBHDS: Cybersecurity in healthcare
The Virginia Department of Behavioral Health and Developmental Services (DBHDS) exists to create ‘a life of possibilities for all Virginians’ and transform behavioural health. Its focus is on supporting people across the entire commonwealth. It helps them get the support they need in order to take wellness and recovery into their own hands. In an area like healthcare, sensitive information is all over the place, meaning cybersecurity is a priority – and this is where Glendon Schmitz, CISO at DBHDS, comes in. “The security team exists to help the wider organisation achieve its objectives with data. We’re there to protect the business, not the other way around.”
Also in this issue, we schedule the can’t miss tech events and get the lowdown on IoT security from the Mobile Ecosystem Forum.
This month’s cover story sees us speak with Brad Veech, Head of Technology Procurement at Discover Financial Services.
Having been a leader in procurement for more than 25 years, he has been responsible for over $2 billion in spend every year, negotiating software deals ranging from $75 to over $1.5 billion on a single deal. Don’t miss his exclusive insights where he tells us all about the vital importance of expertly procuring software and highlights the hidden pitfalls associated.
“A lot of companies don’t have the resources to have technology procurement experts on staff,” Brad tells us. “I think as time goes on people and companies will realise that the technology portfolio and the spend in that portfolio is increasing so rapidly they have to find a way to manage it. Find a project that doesn’t have software in it. Everything has software embedded within it, so you’re going to have to have procurement experts that understand the unique contracts and negotiation tactics of technology.”
There are also features which include insights from the likes of Jake Kiernan, Manager at KPMG, Ashifa Jumani, Director of Procurement at TELUS and Shaz Khan, CEO and Co-Founder at Vroozi.
We look into the need for a supply chain reset amidst inflation concerns, supply uncertainty, geopolitical issues and sustainability drives.
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Today’s supply chains are under pressure like never before.
Amidst inflation concerns, supply uncertainty, geopolitical issues and sustainability drives, the modern supply chain is having to think twice about the way it operates. It means companies are rethinking their supply chain strategy as well as the materials they source and the suppliers they work with. But such significant change doesn’t come easy and isn’t necessarily cheap either. Indeed, these factors have led to the necessity of a great supply chain reset. But this is no easy fix. It impacts the entire business model, from strategy, marketing and design all the way through packaging, storage and transportation.
Supply Chain Revolution
The first part of a supply chain overhaul is rationalising the portfolio. A major review of the product portfolio could reveal what is profitable to make or sell. In many industries, the combined effect of the rising cost of products, logistics, carbon charges for border crossings and frequent supply disruptions is increasing the cost-to-serve, reducing gross margins and making it unprofitable to hold inventory as a buffer.
Leading companies look for ways to improve communications among the supply chain, leadership, sales, and other commercial teams so that supply chain leaders clearly understand the trade-offs required to win in the market. The most successful companies are also involving other key stakeholders in the supply chain balance equation discussion, including finance, R&D, regulatory, sustainability, and procurement. This ensures everyone understands all the implications of the proposed overhaul, particularly what can actually happen.
COVID-19 disruptions pushed companies to reorient their supply chains around resilience. According to Bain & Company, management at one global apparel firm recognised early on that this would require a transformation that would have ripple effects across other parts of the business. In order to make the correct decision, it pulled together a cross-functional strategy team that included the heads of supply chain, finance, sustainability, consumer insights, and the product’s business unit. The team saw the supply chain redesign as an opening to not only boost resilience but also responsiveness and sustainability. It found reducing reliance on any one location would provide insulation from supply disruptions, and making its products closer to customers would speed up delivery and shrink the supply chain’s carbon footprint.
Design to delivery and beyond
Taking a detailed view of the entire product journey, from design to delivery and beyond, can also help to simplify sourcing, by standardising as many elements as possible, reducing the range and specification of materials used for production and packaging. This means fewer suppliers and components, which lowers the exposure to disruption. Companies should investigate whether it’s possible to use less material and/or more recycled content, and whether this can reduce total cost of manufacture.
Today, chief supply chain officers balance multiple conflicting needs of cost, service, sustainability, agility and resilience. As a result of increasingly international trade complexity and the need to manage a widening range of risks, it’s difficult to determine where products should be manufactured and sold. While the onshoring versus offshoring versus friendshoring debate remains, it is further complicated by issues such as sustainability, trade wars, agility and, increasingly, visibility.
In the era of mass offshoring, manufacturers have enjoyed the huge scale efficiencies of large manufacturing centres in low-wage countries. For a wide range of products, there is a now a considerable and visible shift to get closer to the end customer, to ensure a faster response to changing consumer demands, while avoiding tariffs, cutting logistics costs and reducing carbon footprint.
Looking ahead, supply chain has little choice. It can’t stand still and wait for the next black swan event to unfold – companies must be more resilient and fluid. A great supply chain reset may not just be a “nice to have” anymore.
Mike Randall, CEO at Simply Asset Finance, discusses how to build a people-first strategy that enables growth.
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As the UK economy continues to balance on the edge of a recession, employee retention is quickly being pushed to the top of CEOs’ lists. Over the past couple of years, the job market has shifted dramatically with previously unheard terms such as ‘the great resignation’, ‘quiet quitting’ and ‘hybrid working’ becoming commonplace. People are rightly prioritising their working situation and job satisfaction levels, questioning whether they believe in the organisations they are committing so much time to.
Consequently, there has been a power dynamic shift in favour of the workforce. Reportedly in the third quarter of 2022 businesses witnessed over 365,000 job-to-job resignations across the UK. In similar fashion, the phenomenon of ‘quiet quitting’ – doing the bare minimum required of a job – has become a growing concern but its rise is prompted by a growing number of employees feeling disengaged in their roles.
Against this backdrop of a highly turbulent job market, and increasingly difficult macro-economic pressures, it’s vital for CEOs to prioritise a people-first strategy to ensure healthy growth for their business in 2023. Data from Deloitte has even revealed that experts believe how engaged a workforce feels can directly correlate to overall business output, with 93% of HR and business leaders in agreement that building a sense of belonging is crucial for organisational performance.
Mike Randall, CEO at Simply Asset Finance
However, creating the right environment and recruiting, maintaining and nurturing the right talent to ensure a people first approach can be daunting. With this in mind, here are four learnings CEOs might want to consider when approaching this challenge:
1. Define your beliefs
Before CEOs and founders can hope to attract the right talent, it is critical to first distil and translate the business vision into something that can be understood by employees. Put simply, this means defining the business’ beliefs.
Some business leaders may already refer to this as an ‘employer brand’, and it can be key to not only securing better talent, but also saving a business money in the long-term. Data from LinkedIn for example, recently found that a strong employer brand can help to reduce employee turnover by as much as 28% and cost-per-hire by 50%. Defining these beliefs – or the tenets a business does and doesn’t stand for – is therefore the perfect exercise to put a vision onto paper, and clearly communicate it to its prospective talent.
2. Build a solid culture
Once these beliefs have been defined, they must be reflected, and built into a strong culture. A business’ beliefs should permeate through the whole organisation – from customer communications, to how staff are treated, to how leaders run the business. Culture should essentially be a representation of a business’ beliefs being put into practice.
Building a strong culture in a business, however, is not solely about these beliefs but also extends into how employees are equipped with the tools they need to succeed. Companies that invest in learning and development for example, have been found to benefit from a 24% higher profit margin than those that don’t, according to the Association of Talent Development. Training and development should therefore be seen as a worthwhile and necessary investment that can solidify your culture and ensure profitability, not just an unavoidable cost.
3. Invest in retention
With research from Oxford Economics estimating the average turnover per employee earning £25,000 a year to be £30,000 plus, there is an evident cost to businesses that fail to invest in retention. Tackling this will mean regularly taking the time to truly understand what makes employees tick – and more specifically, understanding their motivations, attitudes, behaviours, strengths and weaknesses.
As the past few years have evidenced, individuals are no longer deciding where they work solely based on salary, but are also thinking about employer values, flexibility, and benefits. To avoid employee churn, businesses should regularly take time to understand what drives their employees and implement retention strategies to address these drivers. Gathering and analysing employee data will play an important role here over the coming years, and should be built into a long-term strategy to optimise employee satisfaction.
4. Build for the future
A common challenge encountered by modern businesses and startups wanting to take a people first approach, can be their ability to stay committed to it. As a business grows in size and becomes successful, it can be all too easy to let external factors dictate its purpose and for it to lose sight of what it initially stood for. The reality is that when this happens, a business is in its most vulnerable state – as its beliefs become increasingly distant, and worse, employees no longer understand what it stands for.
When creating a people-first strategy its therefore important to think long-term. If there are external factors that will potentially put this strategy at risk in future, it’s crucial to identify them, and put in practical steps to mitigate them where possible. The pandemic, for example, is a prime example of an external factor that interrupted the status quo of many businesses – disrupting employees, customers and operations in general. While they can be unpredictable in nature, having a plan to get through these times can help to get you back on track and reassure talent that a solution is in place.
In this economic climate, defining beliefs, building a solid culture, and retention plan should be at the core of every business’ strategy. It’s only when these things are in place that a business can hope to attract and retain talented people that exude the same passion and values built into the heart of a business. As while a business’ growth may be defined by its leaders, it is delivered by its people who are putting that vision into practice.
Welcome to the launch issue of CEOstrategy where we highlight the challenges and opportunities that come with ‘the’ leadership role
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Our first cover story explores how Vodafone is leveraging strong leadership to drive the collaborations enabling businesses to champion change management and better use technology.
Welcome to the launch issue of CEOstrategy!
Tasked with accelerating business growth, while building the synergies across an organisation that can drive innovation to meet diverse customer needs and keep revenues on track, the modern CEO must be mentor, marshall and motivator on the journey to success.
“Leadership is purpose, it’s why do you do the things you do…”
Our cover story throws the spotlight on Vodafone US CEO David Joosten; also Director for Americas & Partners Markets at Vodafone Business, he talks to CEOstrategy about leading from the front and setting the standards to deliver growth while keeping employees and customers happy.
“People follow leaders that are honest about themselves. If you can reflect on what you’ve done well, but also where you need to improve it can inspire others to do the same.”
EMCS Industries Ltd: How a CEO can navigate change management
“Why hire talent and then tell them what do? You have so much to learn from the great people you hire. Micromanaging is not management, and it’s certainly not leadership. Let your people thrive!”
Read our interview with EMCS Industries Ltd CEO Trevor Tasker for more thought-provoking insights on leadership from the shifting tides of the marine industry in this maiden issue.
How to be an authentic leader
“At the most basic human level, everyone knows what it’s like to feel heard by another person, and how that changes our behaviour. It can help anger and sadness subside and enable us to start seeing things differently. So, when employees are being listened to by their leaders, it can only help how an organisation operates.”
Dr Andrew White, director of the Advanced Management and Leadership Programme at the University of Oxford’s Saïd Business School and host of the Leadership 2050 podcast series, explores transformative approaches to leadership for the modern CEO.
How can CEOs drive forward culture change around diversity and inclusion?
Diane Lightfoot, CEO of Business Disability Forum, explores the changing the narrative around diversity and inclusion in the workplace.
“Disability is still often parked in the “too difficult” box when it comes to Diversity, Equity and Inclusion. Employers are often afraid of doing or saying the wrong thing and as a result, do or say nothing. As a CEO, the stakes feel (and often are) higher. That high profile platform can feel daunting at the best of times; when tackling an unfamiliar topic, it can feel positively overwhelming. But what we do and say as senior leaders has a huge impact. Indeed, it is critical in driving change.”
https://www.youtube.com/watch?v=g-TRCm1dv6o
Also in this launch issue, we get the lowdown on agile ways of working from Kubair Shirazee, CEO of Agile transformation specialists Agilitea. Elsewhere, we speak with Nirav Patel, CEO of the consultancy firm, Bristlecone – a subsidiary of Mahindra Group and a leading provider of AI powered application transformation services for the connected supply chain – who discusses the challenges facing CPOs and supply chain leaders in our uncertain times. And we analyse the latest insights for CEOs from McKinsey and Gartner.
Standard Bank CIO Bessy Mahopo on the challenges of operating in a fractured market and how the company overcomes them
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This month’s cover story highlights how technology is helping Standard Bank overcome the challenges of a fractured market to both drive business growth and improve services for customers.
Welcome to the latest issueof Interface magazine!
“Time may change me, but I can’t trace time…” sang David Bowie. Changes can be challenging to manage with the path to positive disruption not always a smooth change management journey.
Interface dives deep for insights on understanding, planning, implementing and communicating change across industries.
Standard Bank CIO (CIB – Transactional Banking) Bessy Mahopo explains how one of South Africa’s largest banks is using its own digital transformation successes as a template to support the country’s ongoing technological evolution by overhauling IT from the inside out. “I believe that once we start moving the curve to fifth and sixth generation technology, we’re going to become even more of a value-producer.”
The art of change management with SAP
Maria Villar, Head of Enterprise Data Strategy and Transformation at SAP, talks about the importance of driving change in the technology space and helping businesses thrive with data from the perspective of one of the world’s leading enterprise resource planning software vendors. “My job is about finding out what a good data strategy looks like and continuing to spend time with customers to look ahead…”
Talent transformation journeys with TUI
We caught up with Cerstin Lang, Director for HR Group IT at TUI. She reveals how it’s global For:ward program is driving digital transformation as the travel giant works with training partner Udacity to upskill IT talent. “Our IT goals are focused on developing a structure that supports new ways of working with the right balance to innovate and grow in the future.”
How TransUnion is enabling consumer trust
Alejandro Reskala, CIO Canada, LATAM, Caribbean at TransUnion, about technology transformation at a leading consumer credit reporting agency, its dedication to people, and how it makes trust possible. “TransUnion has always blazed a trail to use technology and data to generate insights that help support financial inclusion.”
Also in this issue, we ask what the birth of ChatGPT means for businesses leveraging tech and learn from Rivery why organisations need to rethink their data strategy with robust operational analytics.
Mark Weil, CEO at TMF Group, discusses the rise of staff attrition in the industry
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At the start of 2023 many companies are still struggling to find employees. The job market favours the applicant far more than before Covid-19 across many sectors. Higher interest rates and lower economic growth so far haven’t reduced the pressure on labour availability.
High staff turnover isn’t just a matter of the cost it creates. The disruption from running with a lot of open roles and with less experienced staff can disrupt client service, increase error rates and lead to more serious compliance and reputation damage.
Mark Weil, CEO at TMF Group
Examining the data
A lot of commentary on the situation has been based on surveys of employees’ intentions rather than their actual decisions. By managing our clients’ financial, legal and employee administration we have access to large volumes of data. This provides insight on the overall recruitment and resignation levels across workforces, from several hundred thousand employees, covering a broad range of sectors and job levels in more than 90 countries.
As a starting point, the data tells us that there was indeed a significant global increase in staff resignation during and after the pandemic. Across the 90 countries, average company staff attrition rose from around 15% annually in mid-2020 to 25% at the end of 2021. That’s a dramatic 67% increase in just 18 months.
Global annualised employee attrition trend
Digging deeper reveals a much more nuanced picture by company and country. In 2021, staff attrition averaged around 20% across the 90 countries but was below 10% in a small number, with Argentina the lowest at 6%. Of those above 20%, India, the UK and Poland topped the list with a rate of 26%. Both India and Poland are now major destinations for companies establishing regional service centres – locations that are supposed to be low cost, stable hubs that support many other countries. So rising staff turnover there will be particularly painful.
2021 average employee attrition by country
When examining the data at company level, annual attrition levels vary even more widely, from a low of around 5% to a high of 40%. Some of that will be a result of challenges in specific industries and companies. Some will arise from the underlying attrition in the labour market of the countries they operate in. To disentangle how much is company versus country, we compare in the chart below the attrition a firm is seeing with the average attrition it should be seeing given the mix of countries where it operates. The wide spread in the data shows that that country averages matter far less than individual company factors. For example, looking at companies whose country mix should give them expected attrition of around 15-20%, we see many at 30%-40% and others at just 5%-10% attrition.
Company actual 2021 attrition versus average for the countries where they operate
Staff attrition is a problem at any time, but becomes a significant threat to a business if it gets too high. How high is a matter of judgement and depends on the particular company. In professional services, for example, when staff attrition is above 20% it starts to impact client service and above 30% it can pose a risk to regulatory and reputational integrity.
The rise in global staff attrition, coupled with big spikes by country and company means that multinational firms will have an increased number of locations where attrition is high and potentially well beyond manageable levels. From 2020 to 2021 the number of employees in company locations experiencing more than 20% attrition nearly doubled, from around 15% to 27%. Looking at where the levels were highest, employees in countries experiencing more than 35% attrition rose from 1% to 7%. That means there’s an increasing number of hotspots, where extremely high staff attrition means companies need to intervene quickly to avoid staff resignations spiralling due to increased workload.
Factoring in country complexity
An important additional factor is the complexity of a particular country to operate in. Many countries have onerous business rules which are enforced vigorously. High staff turnover in complex countries is particularly dangerous because of the added risk of compliance breaches.
We can look at country complexity using TMF Group’s Global Business Complexity Index. It ranks countries annually based on 292 criteria, covering the fiscal, legal and employment environments for doing business in each location.
Procurement is in a state of flux. Against a backdrop of economic uncertainty, the procurement landscape is volatile and requires…
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Procurement is in a state of flux.
Against a backdrop of economic uncertainty, the procurement landscape is volatile and requires agility to navigate turbulent waters. But, despite significant disruption could there still be opportunity?
Simon Whatson, Vice President of Efficio Consulting, is optimistic about the future of digital procurement and despite a challenging few years he is confident of a successful bounce back. He gives us the lowdown on the direction of travel for digital procurement in 2023.
As an executive with considerable experience in the space, we’d love to learn more about your background and how you ended up in procurement. Why was this the specialism for you and how did you get involved to begin with?
Simon Whatson (SW): “I think the one-word answer of how I came into procurement was accidental. I studied maths at university, with a year in France, before I began looking for different roles to apply for.
“Eventually, I was offered a position with a big plumbing and heating merchant with global operations. I worked in that supply chain team for two and a half years. Although it was called supply chain, a lot of the work was procurement, which involved negotiating with suppliers. It was after that stint there, that I discovered consulting and joined a boutique procurement consultancy. Now I am onto my third consultancy and I’m very happy here!
“In terms of why I’ve stayed, one of the success factors in procurement is being able to work cross-functionally. Procurement doesn’t own any of the spending that it is responsible for helping to optimise. It must work with other functions and the spend owners. I quite like the people side of that, building relationships, almost selling internally to bring teams together. That really appeals to me and is a key reason why I’ve been very happy in procurement.”
As we move into exploring procurement today in 2023. The space is filled with challenges and complexities. You only need to look at the last few years. Covid, war in Ukraine, inflation – how would you describe the world’s recent challenges and their effect on the industry and what do you feel CPOs and leaders can do to combat these issues?
SW: “I would flip it around and say that these are not so much challenges but rather opportunities for procurement. When I started my career 18 years ago, procurement was often fighting to get a voice and there were complaints that procurement was not represented at the top table, but the war in Ukraine, inflation, COVID and ESG, these are things which are now on the C-suite agenda and procurement is ideally positioned to help companies face those challenges. If you think about COVID and the war in Ukraine, procurement is in a privileged position to help with this.
“I see some procurement functions that prefer to do what they know, which focuses on the process and transactional side. However, there are also many forward-thinking CPOs and procurement professionals out there, that have really seized this opportunity of being on the C-suite agenda and drive the thinking and the solutions to some of these big challenges we’re seeing.”
Although new technology in procurement has been around for well over a decade, digitalisation has become so much more of an important topic. How would you sum up where procurement and supply chain are in terms of digital transformation today?
SW: “It’s a bit laggard, but digital transformation is difficult, and we have to recognise there are some real trailblazers. There are some firms doing some fantastic things in digital to produce better outcomes. If you contrast your experience when you’re buying something in your private life, it’s much easier than 20 years ago. You can get access to a wealth of pre-sourced things, whether it’s food, a holiday, a car, or a book. You can see reviews of what other people think of these things.
“But when you go into your workplace as a business user and you want to buy something, it doesn’t quite work like that yet. You often have to fill in a form, send it off and wait for them to come back to you. They might come back a little bit later than you were hoping and might tell you that they don’t have that part on the supply frameworks. I think people sometimes get confused about how it can be so easy to buy something as large as a car or a holiday on their sofa at home, but when they want to buy something at work, it seems to be quite cumbersome. Digital can help a lot with that, but it is incumbent on organisations and procurement functions to figure out how to recreate that customer experience that we’ve become accustomed to in our private lives.”
With a new generation of leaders growing up with technology, some might say that it could be a key driver in helping to speed the adoption in procurement along. Is this something you would agree with or what would you point to as a key driver?
SW: “I do think that it will act as one of the catalysts for further digital transformation in organisations, because if procurement doesn’t manage to recreate that customer experience that the new generation expects, then they won’t use procurement going forward and will look to bypass it.
“The analogy that I’ve used previously in this case is one of travel agents. I remember as a child, my parents were able to take us on holiday and I remember the whole process. We would walk into town to the travel agent, and look at some of the brochures of options. They often then had to phone the various airlines or resorts on our behalf. They might not be able to get through, so we’d have to come back the next day. I remember as a child being quite excited by the whole process but actually, thinking back, it was quite cumbersome. You compare that to now, with being able to review online, and you can get instant answers to your questions. It’s not a coincidence that travel agents don’t really exist anymore.”
How much of a challenge is it to not get caught leveraging technology for technologies sake? How important is it to stay true to your approach and be strategic?
SW: “We conducted a study of many procurement leaders and CPOs a few years ago, and one of the things that we found was that about 50% of procurement leaders admitted to having bought technology just on the basis of a fear of missing out, without any real understanding of the benefits that technology was going to bring. That was a real shock and a revealing find because technology is not cheap, and its implementation is quite disruptive. If you’re purchasing a system because everybody else is using it, then there could be some pretty costly mistakes. It is really important to make sure that when buying technology, it is because the benefits are fully understood.
“My advice to companies when looking to digitalise is own your data, visualise that data, and manage your knowledge. If you can focus on getting those things right in that order, and make your technology decisions to support that goal, then that’s a much better way of thinking about it rather than just jumping in and buying a piece of technology.”
It’s clear that the procurement space is an exciting, but challenging, place to be. What do you think will play a key role in the next 12 months to push the digital conversation further to take procurement to the next level?
SW: “Looking forward, one thing that procurement needs to do and continue to do is attract the best people. Ultimately, people are what makes an organisation, and it is what makes a function successful. I think procurement has often not looked for the right skills in the people that it employs. Traditionally, it’s looked for people with procurement experience and while they are valuable and required, we also need leadership potential. People who think a bit more outside the box and aren’t so process driven. A lot of what procurement has done in previous years has been process driven, so if you’re just limiting your search of people to those that have had procurement experience, you’re inevitably going to end up with a lot of people who are process driven.
“I think being bolder and recruiting people from different backgrounds with different skill sets is the way to go. If procurement can ‘own’ the ESG space, that will help with the younger generation see procurement make a difference. I think that’s one thing that will be key to success going forward.”
Check out the latest issue of CPOstrategy Magazine here.
Paul Farrow, Vice President of Hilton Hotels’ Supply Management, sits down with us to discuss how his organisation’s procurement function has evolved amid disruption on a global scale
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The hospitality industry has endured a rough ride over the past few years.
Following the COVID-19 pandemic which stopped the world in its tracks and now with millions facing a cost-of-living crisis, it’s been a period of unprecedented disruption for those involved in the space and beyond.
But it’s a challenge met head-on by Paul Farrow, Vice President of Supply Management at Hilton Hotels, and his team who have been forced to respond as the world continues to shift before their eyes.
Farrow gives us a closer look into the inner workings of his firm’s procurement function and how he has led the charge during his time with Hilton Hotels.
Could we start with you introducing yourself and talking a little about your role at Hilton Hotels?
Paul Farrow (PF): “I’m the Vice President of Hilton’s Supply Management, or HSM as we call it. I’ve been with Hilton Hotels for 12 and a half years, and my role is to head the supply chain function for our hotels across Europe, the Middle East and Africa.
“Over the past few years, Hilton has grown rapidly and has now got 7,000 hotels in over 125 countries globally. What is really exciting is Hilton Supply Management doesn’t just supply Hilton Hotels and the Hilton Engine because we also now supply our franchisees and competitive flags. While we have 7,000 hotels globally, Hilton Supply Management actually supplies close to 13,000 hotels. That’s an interesting business development for us, and a profit earner too.”
You’re greatly experienced, I bet you’ve seen supply chain management and procurement change a lot in recent years?
PF: “The past two to three years have been tremendously challenging on so many industries but I’d argue that hospitality got hit more than most as a result of the Covid pandemic. Here at Hilton, supply management was really important just to keep the business operational throughout that tough time, but I’m delighted to say we’re fully recovered now.
“Looking back, it was undoubtedly difficult, and you only have to look at the media to see that we’re now going through a period of truly unprecedented inflation. On top of the normal day job, it’s certainly been a very busy time.”
Hospitality must have been under an awful lot of pressure during the pandemic…
PF: “Most of our teams as a business and all functions have worked together far more collaboratively than ever before through the use of technology and things like Microsoft Teams and Zoom. Trying to work remotely as effectively as possible changed the way we all had to think and the way we had to do. Now we’re back in the workplace and in our offices, we’re actually looking to take advantage of that new approach.”
Inflation, rising costs, energy shortages, as well as drives towards a circular economy means it’s quite a challenging time for CSCOs and CPOs right now, isn’t it?
PF: “Those headwinds have caused and created challenges of the like that we’ve not seen before. The war in Ukraine and Russia has meant significant supply chain disruption and supply shortages of some key ingredients and raw materials. China is a significant source of materials and they’re still having real challenges to get their production to keep up with demand.
“All the local and short-term challenges are around energy and fuel pricing, so throughout the supply chain that’s been a major factor to what we’ve had to deal with. On top of that is the labour shortages. We rely heavily throughout the supply chain and within our business to utilise labour from around the world. In my region, particularly from say Eastern Europe as well as other businesses all fighting for a smaller labour pool than we had before. We are fighting with the likes of the supermarkets, Amazon’s, not just other hotel companies to capture the labour pool we need both in our properties but also within our supply chain supplies themselves.
Hilton operates a rather unique procurement function, doesn’t it?
PF: “We trade off the Hilton name because our brand strength is something that we are able to utilise and we’re very proud of, but we’ve also got additional leverage by having that group procurement model.
“We’ve got essentially two clients. We’ve got our managed estate which is when an owner chooses to partner with Hilton, they’re signing a management agreement because they want the benefit and value of the Hilton engine. That could be revenue management, how we manage onboarding clients and customers through advertising, as well as the other support we give in terms of finance, HR, marketing and sales as well as procurement.”
HSM is a profit centre and revenue driver through its group procurement model but how does this work?
PF: “Our secret sauce is our culture. It’s our people and that filters across all of our team members and indeed all of our functions. The key strategic pillars are the same for health and supply management around culture, maximising performance and so on as they are across the overall global business.
“Across our 7,000 plus hotels, the majority are actually franchised hotels because that’s the legacy of what still is the model in the US. When I joined Hilton 12 and a half years ago, the reverse is true where nearly all of our hotels in Europe, Middle East and Africa, and indeed in Asia Pacific, were and are managed. In the Europe, Middle East and Africa regions right now we’re building up close to a 50/50 split between managed, leased and franchised.”
What has pleased you most about the roll-out of the HSM?
PF: “It’s certainly not been easy because we’ve got 70 countries that sit within our region here in EMEA and Hilton’s penetration in those individual countries is very different. We may have 100 hotels in one of those markets and only one or two in specific countries. Our scale and our ability to get logistics solutions is different by market.
“Getting everyone on board to what we want to achieve to our guests and to our owners means we have to pull different levers. We have very effective brand standards. If you’re signing up to Hilton, you’re signing up to delivering against those brand standards that we believe are right for our organisation.”
What kind of feedback have you had from your clients?
PF: “Integrity is in our DNA, and we work very closely with our suppliers who we value as partners. These are long-term relationships, and we work hand in hand because we have to see that they’re successful so that we can be successful – it’s really important to what we do and we constantly look for feedback.
“With our internal and our external customers, we’ll have quarterly business reviews and so we’ll get that feedback through surveys where we are asking them to tell us what we do well and what we could do better. Our partners are now asking what additional value can you do to bring support to our organisation through ESG? So that’s what’s on the table now when it wasn’t before. But it’s not just that – it’s about the security of supply competitiveness, competitiveness of pricing, and a whole bunch of other very important things as well.”
Looking to the future, what’s on the agenda for the next few years?
PF: “We’re out there meeting and greeting people in person and there’s always new opportunities that make things exciting in what we do and how we work. Innovation’s very high on our agenda and we’re very proud of what we do in food and beverage. In non-food categories, it’s about how we support our owners and our hotel general managers to find that competitive edge and do the next big thing ahead of our competitors.”
Anything else important to know?
PF: “One thing we’ve been able to take full advantage of is how we’ve been able to grow our business by bolting on new customers. I think it’s fantastic that our competitors choose to use Hilton Supply Management because they benchmarked what our capabilities are and how competitive we are.
“Another key part of the agenda is environmental, social and governance (ESG) sustainability. Responsible sourcing and everything that sits within that is front and centre of what we do. Within that you’ve got human rights, animal welfare, single use plastics as well as general responsible sourcing like managing food waste. The list is very long, but they’re all very important.”
Check out the latest issue of CPOstrategy Magazine here.
“Disruption should drive digitalisation and cloud uptake rather than hindering it.”
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Sal Laher, Chief Digital & Information Officer at global enterprise software provider IFS, reveals how a single strategy for cloud and digitalisation helps businesses maximise the rewards of growth.
Digitalisation equals transformation
Digitalisation and the business transformation projects that enable it are again on the radar for many businesses, particularly given the current macro-economics and potential recession being predicted. According to recent data from Research and Markets, The Global Digital Transformation Market size is expected to reach $1,302.9bn by 2027, rising at a compound annual growth rate (CAGR) of 20.8% in the period 2021-2027.
This renewed focus on digitalisation is aligned to businesses accelerating cloud migration, including readily available SaaS solutions. The Flexera 2021 State of the Cloud Report finds 92% of enterprises have a multi-cloud strategy and 80% have a hybrid cloud strategy.
Sal Laher, Chief Digital & Information Officer, IFS
Both trends will go hand in hand as digitalisation and cloud migration continue to drive business efficiencies, process change and consumer service demands. Most organisations are aware of the potential rewards both business models can bring. This is because it is not the first time they are being talked about– this major transformational shift has already been in place for a decade. But some, wary of the disruptive impact of recent global events are holding back from implementing them. However, it is the wrong approach.
Disruption should drive digitalisation and cloud uptake rather than hindering it. Even in isolation, either moving to the cloud, or undertaking digitalisation, will enable faster decision-making, supported by greater compute power and more agile processes, generating faster output and enhancing customer service. Yet, to drive competitive edge, organisations need to combine cloud migration with business transformation and look to maximise those benefits. To do this, they must develop a single strategy covering both elements and move forward with a common approach.
Migrating to the cloud for business transformation
By digitalising, organisations have an opportunity to benefit from faster time to insight, enhanced business and customer connectivity, and operational efficiencies. It allows them to more easily collect and analyse data that they can later turn into actionable, revenue-generating insights.
Over time, they can go further and start to tap into the benefits of artificial intelligence, machine learning, big data analytics, and the Internet of Things (IoT). But it is the additional compute power and scalability of the cloud that helps them to maximise these benefits and fulfil the potential of digital technologies.
Cloud migration also includes adopting evergreen application (business process) solutions in the cloud with the many SaaS solutions that are available today. That’s why it is important that they adopt a single plan to migrate to the cloud and drive business transformation all in one. This tandem approach also avoids unnecessary customisation, making a business much more agile to change based on actionable data insights.
Adopting a single plan will, in itself, drive up efficiencies and drive down costs. But critically, the two must be linked to ensure that businesses maximise the benefits of the migration process.
It is cloud, after all, that helps businesses adapt to the new digital world, enabling them, for instance, to leverage out of the box business applications, digital analytics tools and low code platforms that deliver informed decision-making and reduce costs. But cloud doesn’t just maximise the benefits for businesses, it also accelerates them. Cloud has become the fulcrum of digital transformation, mainly due to its ability to enable innovation at scale and allow businesses that have digitalised to rapidly launch enterprise-ready products.
Without cloud, businesses will struggle to drive through timely updates to systems and processes. The costs of stakeholder management may ramp up. Moreover, moving to the cloud without doing it within the step-by-step structure of digital transformation risks mistakes being made, increasing the likelihood of data loss and security breaches through misconfigurations.
Optimising the benefits of digital transformation in the cloud
We have seen how important it is to adopt a single strategy for cloud migration and digitalisation and to execute them in tandem. But organisations also need to maximise the benefits of the combined approach. So how can they best do this?
First, they need to avoid procrastination and delay. The benefits of digitalisation and cloud migration working together are compelling – and senior leaders need to seize the initiative and kickstart the transformation. To get the ball rolling, they need to conduct a benchmarking exercise to better understand where their business stands in terms of its capabilities or gaps. This will help to decide where efforts and resources should be focused.
They then need to align their business processes with IT. That’s key as modern business models increasingly emphasise the digitalisation of processes.
Cloud computing and network security concept, 3d rendering,conceptual image.
They should begin by determining their goals and the systems, technologies, and processes currently in use to achieve them. Next, they need to brainstorm and document core business objectives before developing a cloud and digitalisation migration roadmap to guide their implementation. Measuring performance will also be crucial to optimising results. In choosing which metrics to analyse, organisations should concentrate on those that will most positively impact their bottom line or user experience.
Ensuring employees buy into the process of cloud-based digitalisation will also be key. Organisations should use cloud-based digitalisation as an opportunity to strengthen business processes and help employees switch to new ways of working which maximise the potential of the new technology.
Digital readiness
Given all this, it is vital businesses don’t delay on their journey to digital and the cloud. Unfortunately, CIOs often struggle to know where to start with a cloud and digital migration strategy.
Before they begin, they often look to put a complete strategy in place up front. The truth is that it is not necessary. Instead, they need to get going and prioritise what’s most important. Pick one area, settle on a use case, digitalise, and move it to the cloud, demonstrate results – and then repeat incrementally. That will enable the business to showcase value and create momentum. Over time also, this single coordinated approach, will allow it to tap into a wide range of cloud and digitalisation related benefits – and ultimately to maximise the rewards.
Ian Povey, CIO – Head of Payments Services & Technology, on the strategic transformation taking place at NatWest benefitting both the bank and its customers
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This month’s cover story reveals how innovation is at the core of change for payments processes at NatWest.
Welcome to the latest issueof Interface magazine!
Charles Darwin famously said: “It is not the strongest of the species that survives, nor the most intelligent; it is the one most adaptable to change.” Technology is helping us to evolve. And that evolution is being driven by innovation.
“It may be a cliché, but a transformation journey really has no end… If you fixate on a constant end state without ‘checking in’ you can, and likely will, fail in your objectives.” A wise outlook from a CIO with three decades of change management experience across banking’s payments panorama.
Ian Povey, CIO – Head of Payments Services & Technology, discusses the strategic transformation taking place at NatWest and how that journey of change and innovation is benefitting both the bank and its customers as it evolves to become a relationship bank for a digital world. “Our environment is always changing – we must be on the back of the ‘Change Dragon’ and steering/influencing as a leader and always learning from our teams for new ideas.”
Customer-Centric transformation at FedEx
We also check in with logistics leader FedEx… Custom Critical CIO Cheryl Bevelle-Orange reveals a “technology-forward yet flexible company” embracing innovation and “paving the way for customers to get more relevant information faster about their packages while delivering with excellence”.
https://www.youtube.com/watch?v=galaZZlrEn0
Continuous Improvement in IT at Mazars
Mazars CIO David Marcelino explains his approach to innovation and leading on a successful IT transformation program at one of the world’s largest audit and advisory firms aiming to improve the digital experience for all its stakeholders. “Change Management, adoption, training and awareness are at the core of every single business technology project we deliver.”
Tech innovation at speed with the US Air Force
We also caught up with George Forbes, Director of Digital Operations Directorate at the United States Air Force, who outlines the importance of innovation within the federal government.
Digital Transformation in healthcare at Avellino
Nancy Selph, Global Head of IT at Avellino Lab, discusses how technology is creating new opportunities to improve health outcomes and the importance of leadership in the industry.
Also in this issue, we round up the key tech events and conferences across the globe; we learn how Minted are making it easy for everyone to invest in gold; and we feature the latest on cloud digitalisation from IFS.
What does today’s CEO need to do to accelerate an organisation’s digital transformation journey?
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Digital transformation journeys are no one-size-suits-all. There is no singular way to welcome a new wave of technology into operations.
Since the turn of the century, digitalisation has had an increasingly influential impact on the way CEOs make decisions. Today’s world is full of disruption and potential risk. And with technology growing in complexity it can be challenging to lead such a revolution against a backdrop of economic uncertainty.
Embracing digital
According to KPMG 2022 CEO Outlook, which draws on the perspectives of 1,325 global CEOs across 11 markets, 72% of CEOs agree they have an aggressive digital investment strategy intended to secure first-mover or fast-follower status.
Advancing digitalisation and connectivity across the business is tied (along with attracting and retaining talent) as the top operational priority to achieve growth over the next three years. This digital transformation focus could be driven as a result of increasingly flexible working conditions and greater focus on cybersecurity threats.
However, the prospect of recession is threatening to halt digital transformation in the short-term. KPMG research found that four out of five CEOs note their businesses are pausing or reducing their digital transformation strategies to prepare for the anticipated recession.
This is reinforced further when 70% say they need to be quicker to shift investment to digital opportunities and divest in those areas where they face digital obsolescence.
When a company’s digital transformation ambition is mismatched to its readiness, it is the CEO’s responsibility to close the gap. According to Deloitte, in order to do this successfully, the CEO must assess the current level of organisational readiness for change.
This covers four key pillars that are mixed together to work out an organisation’s overall readiness: leadership, culture, structure and capabilities.
How CEOs can close the gap
Leadership: CEOs need to ensure their c-suite and other key executives are motivated and equipped to execute the vision. CEOs interviewed by Deloitte in a recent study emphasised the importance of the leadership team supporting the transformation vision and having a positive attitude and willingness to transform.
Culture: A large potential barrier to readiness in the organisation is down to culture. Low cultural readiness takes the form of bureaucratic, reactive and risk-averse ways of working that are at against the collaborative, proactive learning mindset needed for ambitious transformation.
Structure: If a company hopes to operate differently, it could mean the need for organising in an alternative way. CEOs will often need to lead the reorganisation of teams, assignment of new roles, revision of incentives, strategies to collapse organisational hierarchies or layers to increase agility.
Capabilities: CEOs need to equip their organisation with four key capabilities to harness digital for a superior capacity for change. These are nimbleness, scalability, stability and optionality which are often enabled or supercharged by digital technologies which are critical factors for competing in an increasingly disrupted world.
For now, one of the CEOs most important roles when steering the ship through disruption is to be ahead of the latest trends and tackle change head-on. By embracing a new digital future that will provide the company with long-lasting benefits, it will help create a brighter and future-proofed firm for years to come even after the CEO is gone.
Here are five of the biggest procurement events happening during 2023 that chief procurement officers won’t want to miss.
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Procurement Futures
London, UK | 1-2 February 2023
Held at the QEII Centre in central London, Procurement Futures is a new conference, launching in 2023. It promises delegates the chance to find out how to make supply chains more resilient, with thought-provoking and presentations and discussions designed to inform and inspire.
There is a flexible programme of content that can be tailored to attendees’ preferences, with networking opportunities throughout and a huge variety of sessions to attend and take part in.
This CIPS event has three streams of content: Insights, Ignite and Interact. Insights will showcase presentations and panel discussions from leaders, Ignite will consist of hands-on workshops to help delegates optimise their procurement strategies and Interact will be smaller groups taking part in interactive roundtables and debates.
Speakers across the two days will include Ross Grierson, Director of Procurement, Primark; Patrick Dunne, Director of Group Property, FM & Procurement (CPO), Sainsburys Plc; Rebecca Simpson, Procurement and Supply Chain Director, Balfour Beatty; and Nick Jenkinson, Chief Procurement Officer, Santander. In addition, delegates are ablew to book a one-to-one career workshop, where they’ll get advice on professional development from coaches covering a variety of specialisms.
Tickets are £795 for CIPS member, £995 for a non-member and £2240 for a supplier/solution provider, and there is a discount of 30% for tickets purchased before 30 November 2022.
The third World Digital Procurement Summit is aimed at procurement directors, VPs, managers and other industry specialists. The two-day event will focus on accelerating procurement processes, adopting emerging technologies, finding the right talent, overcoming the barriers to progress and embarking on a journey of transformation. It’s a hybrid event, bringing together procurement experts from various industries, which will maximise knowledge exchange opportunities. The event organisers list five key learning points for delegates:
Exploring the latest advances in data and cognitive technologies to gain greater insights and improve procurement processes
Overhauling the procurement ecosystem with new technologies and strategies to drive business value
Sharing the best practices of monitoring and managing a range of risks to hedge against future disruptions
Developing capabilities and skillset required for the digital transformation of procurement
Defining ESG metrics of the procurement strategy to ensure business continuity
Speakers will include Paul Harlington, Group Procurement Director at TUI Group and Patrick Foelck, Head of Strategy and Transformation Procurement at Roche.
Click here to check out a video from a previous event. Tickets cost €1495.
Returning for its 8th annual event, Women in Procurement & Supply Chain will deliver two days dedicated to leadership and the future of procurement. The event will feature a series of exclusive panel discussions and keynote addresses examining career development, overcoming imposter syndrome, working with confidence, developing an unbeatable talent pool, mentoring, diversity and inclusivity.
It will also address risk mitigation, digital disruption, ESG, sustainability, economic development, ethical sourcing, category management, cultural diversity, strategic sourcing, supplier relationships, procurement with purpose, and supply chain resilience. There are two pre-conference masterclass options on 6 March – that can be booked separately – covering either contract law or leadership skills.
Some of the reasons to attend include:
Discover the path to taking your procurement career to a new level while elevating your organisation with dedicated days on leadership and the future of procurement
Learn best practice strategies to facedown supply chain vulnerabilities and reduce risk exposure
Get ahead of the game with insights into the future of procurement and the impact of globalisation on modern supply chains
Put yourself at the cutting edge of ESG and procurement with the latest updates and trends in procurement with purpose
Speakers for the main two-day conference include Michelle Richard, Director of Procurement, Thales; Karina Davies, Chief Procurement Officer, icare NSW; and Kylie McKinlay, Procurement Partner – Property and Business, Australian Broadcasting Corporation.
Tickets start at $3,495 with discounts available until 25 November 2022.
The Americas Procurement Congress will feature the region’s most progressive CPOs sharing their expertise
With a focus on what makes CPOs tick, the Americas Procurement Congress will feature the region’s most progressive CPOs sharing their expertise in keynote presentations and working groups.
Giving delegates the tools to stay on the cutting edge of procurement developments, there are also sessions aimed at those with responsibilities over governance, procurement capabilities and quantifying data. Unsurprisingly, sustainability will also be a key theme in 2023, and attendees will hear from a diverse range of sustainability leaders about how to transition from traditional metrics to a purpose-driven function.
The agenda for Americas Procurement Congress 2023 will include:
Sustainability of the future
How to transition from traditional metrics to a purpose-driven function
Harnessing the power of digital transformation
Utilizing data as a driver of sustainable value, supply continuity and transparency Agile procurement
New approaches and skills that facilitate speed and agility
Frictionless procurement
Removing friction from the procurement process to support high-velocity sourcing
Beyond Just in Time
Designing future-fit supply networks for an age of chaos and conflict
Gartner Supply Chain Symposium/Xpo 2022 addressed the most significant challenges that chief supply chain officers and supply chain leaders face as they mitigate risk and navigate uncertainty in an increasingly dynamic and challenging environment.
At the conference, the top 5 sessions that CSCOs and supply chain leaders met on included:
Signature Series: The Future of Supply Chain
What the Pivot to Sustainable Profit Means for Procurement Leaders
The Art of the New Age One Page Dashboard: Why Your Current Perfor-mance Measures May Be Doing More Harm Than Good
Manage Supplier Risk With Technology
Procurement Role Redesign: Stop Fitting Square Pegs Into Round Holes
Here are five of the best procurement schools in Europe.
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As procurement becomes an increasingly vital and strategic function within many organisations, people are beginning to realise the full potential of turning it into a career for themselves.
This has subsequently led to many universities noticing the demand in the industry and offering courses which equip students with the relevant qualifications and skills needed to succeed in the supply chain space.
With this in mind, here are five of the best procurement schools in Europe.
1. CIPS
Course: Various Where: Across England
Run by Oxford College of Procurement and Supply, there are 10 Chartered Institute of Procurement and Supply centres in England offering several different qualification levels to choose from. The courses are recognised throughout the world as harnessing leading edge thinking and professionalism across the procurement and supply chain management space.
CIPS offers courses such as level three, four, five and six in procurement and supply with each qualification created to reflect current, emerging and best practice in procurement and supply chain management. Classes focus on exploring legacy purchasing and supply methods as well as techniques and theory to the application in a business environment.
CIPS doesn’t just offer in-person studying as courses are designed to suit individual lifestyles with virtual classrooms, part-time and weekend options to choose from.
2. Politecnico di Milano
Course: MSc in Supply Chain and Procurement Management Where: Milan, Italy
Renowned as being one of the best scientific and technological universities in the world, Politecnico di Milano offers an extensive portfolio of programmes in a variety of different spaces. Its supply chain master’s degree is a 12-month course aimed at equipping students with vital knowledge and skills needed to succeed in the industry.
The course also includes a number of practical activities in the programme such as lessons with international lectures, workshops on soft skills, company presentations, projects with companies, company visits and an international study tour in Rotterdam.
According to Politecnico di Milano, 86% of students were employed three months after graduation while 55% were also working abroad during the same period.
The course was ranked third in the TOP 2021 Eduniversal Best Masters Ranking (Global) and eighth in the QS Supply Chain Management Masters Rankings for 2023.
3. SKEMA Business School
Course: MSc (and MS) Supply Chain Management and Purchasing Where: Lille and Paris, France
Skema offers two supply chain management (SCM) and procurement masters: The premium international MSc Global Supply Chain Management in Lille taught in English, and the MS in SCM and Purchasing in Paris and Lille mainly taught in French. France’s highly-rated supply chain and procurement program has been designed with a progressive shift from theory to practice. The degree covers the entirety of supply chain activities from planning, purchasing, receiving, production, storage to delivery through nine compulsory and six elective courses.
The global MSc has a new cooperation with the leading prestigious business school, MIT in the US, plus another cooperation with Politechnico from Milano. The MSc master’s degree provides soft skills in supply chain and purchasing management as well as going into future trends in digitalisation, AI, sustainability, ethics, globalisation, risk management and agility. The course’s primary goal is to find future leaders who are seeking to make a positive impact on the world of supply chain management and procurement. The MSc is a full time program, complemented by paid internships in the area of the student’s choice, while the MS alternates weeks of classes with professionals at the forefront of their fields.
4. Audencia Business School
Course: MSc in Supply Chain and Purchasing Management Where: Nantes, France
Created in 2009, Audencia Business School’s programme will cover topics such as procurement, global sourcing and supply chain strategies. Other topics to feature includes green logistics, Big Data, digital transformation, negotiation and commercial law. The course will provide expertise from industry insiders as business executives visit and share professional insights during the programme.
The school works closely with the corporate world and is recognised for its responsible management practices. Audencia is triple-accredited, highly ranked and internationally oriented and according to its website, 79% of course graduates are employed before graduation. The course is available as a one-year or two-year master’s programme.
In autumn 2024, the course is set to be renamed to the MSc in Responsible Procurement and Supply Chain Management.
5. Cranfield School of Management
Course: MSc in Procurement and Supply Chain Management Where: Cranfield, United Kingdom
Cranfield School of Management provides students with specialist knowledge and skills in procurement needed to progress their careers
Cranfield’s Procurement and Supply Chain Management course has been co-designed with senior industry executives. This purchasing postgraduate course provides students with specialist knowledge and skills in procurement needed to progress their careers. Possessing one of the largest facilities in Europe, the course places considerable emphasis on how to overcome real-world challenges.
Students will gain an in-depth understanding of supply chain strategy and sustainability, procurement strategy, supplier selection and evaluation, negotiation and contact management. They will also be taught how to use data, models and software to solve problems and inform decisions, inventory and operations management and how to design effective supply chain operations.
Students will have the opportunity to attend a study tour and experience a different supply chain perspective elsewhere in Europe.
The course was ranked 11th in the world on the QS Supply Chain Management Masters Rankings for 2023.
Expert analysis of the tech trends set to make waves this year
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Digital transformation is a continuing journey of change with no set final destination. This makes predicting tomorrow a challenge when no one has a crystal ball to hand.
After a difficult few years for most businesses following a disruptive pandemic and now battling a cost-of-living crisis, many enterprises are increasingly leveraging new types of technology to gain an edge in a disruptive world.
With this in mind, here are what experts predict for the next 12 months…
1. Process Mining
Sam Attias, Director of Product Marketing at Celonis, expects to see a rise in the adoption of process mining as it evolves to incorporate automation capabilities. He says process mining has traditionally been “a data science done in isolation” which helps companies identify hidden inefficiencies by extracting data and visually representing it.
“It is now evolving to become more prescriptive than descriptive and will empower businesses to simulate new methods and processes in order to estimate success and error rates, as well as recommend actions before issues actually occur,” says Attias. “It will fix inefficiencies in real-time through automation and execution management.”
2. The evolution of social robots
Gabriel Aguiar Noury, Robotics Product Manager at Canonical, anticipates social robots to return this year. After companies such as Sony introduced robots like Poiq, Aguiar Noury believes it “sets the stage” for a new wave of social robots.
“Powered by natural language generation models like GPT-3, robots can create new dialogue systems,” he says. “This will improve the robot’s interactivity with humans, allowing robots to answer any question.
“Social robots will also build narratives and rich personalities, making interaction with users more meaningful. GPT-3 also powers Dall-E, an image generator. Combined, these types of technologies will enable robots not only to tell but show dynamic stories.”
3. The rebirth of new data-powered business applications
Christian Kleinerman, Senior Vice President of Product at Snowflake, says there is the beginning of a “renaissance” in software development. He believes developers will bring their applications to central combined sources of data instead of the “traditional approach” of copying data into applications.
“Every single application category, whether it’s horizontal or specific to an industry vertical, will be reinvented by the emergence of new data-powered applications,” affirms Kleinerman. “This rise of data-powered applications will represent massive opportunities for all different types of developers, whether they’re working on a brand-new idea for an application and a business based on that app, or they’re looking for how to expand their existing software operations.”
4. Application development will become a two-way conversation
Adrien Treuille, Head of Streamlit at Snowflake, believes application development will become a two-way conversation between producers and consumers. It is his belief that the advent of easy-to-use low-code or no-code platforms are already “simplifying the building” and sharing of interactive applications for tech-savvy and business users.
“Based on that foundation, the next emerging shift will be a blurring of the lines between two previously distinct roles — the application producer and the consumer of that software.”
He adds that application development will become a collaborative workflow where consumers can weigh in on the work producers are doing in real-time. “Taking this one step further, we’re heading towards a future where app development platforms have mechanisms to gather app requirements from consumers before the producer has even started creating that software.”
5. The Metaverse
Paul Hardy, EMEA Innovation Officer at ServiceNow, says he expects business leaders to adopt technologies such as the metaverse in 2023. The aim of this is to help cultivate and maintain employee engagement as businesses continue working in hybrid environments, in an increasingly challenging macro environment.
“Given the current economic climate, adoption of the metaverse may be slow, but in the future, a network of 3D virtual worlds will be used to foster meaningful social connections, creating new experiences for employees and reinforcing positive culture within organisations,” he says. “Hybrid work has made employee engagement more challenging, as it can be difficult to communicate when employees are not together in the same room.
“Leaders have begun to see the benefit of hosting traditional training and development sessions using VR and AI-enhanced coaching. In the next few years, we will see more workplaces go a step beyond this, for example, offering employees the chance to earn recognition in the form of tokens they can spend in the real or virtual world, gamifying the experience.”
6. The year of ESG?
Cathy Mauzaize, Vice President, EMEA South, at ServiceNow, believes 2023 could be the year that environmental, social and corporate governance (ESG) is vital to every company’s strategy.
“Failure to engage appropriate investment in ESG strategies could plunge any organisation into a crisis,” she says. “Legislation must be respected and so must the expectations of employees, investors and your ecosystem of partners and customers.
“ESG is not just a tick box, one and done, it’s a new way of business that will see us through 2023 and beyond.”
7. Macro Trends and Redeploying Budgets for Efficiency
Ulrik Nehammer, President, EMEA at ServiceNow, says organisations are facing an incredibly complex and volatile macro environment. Nehammer explains as the world is gripped by soaring inflation, intelligent digital investments can be a huge deflationary force.
“Business leaders are already shifting investment focus to technologies that will deliver outcomes faster,” he says. “Going into 2023, technology will become increasingly central to business success – in fact, 95% of CEOs are already pursuing a digital-first strategy according to IDC’s CEO survey, as digital companies deliver revenue growth far faster than non-digital ones.”
8. Organisations will have adopted a NaaS strategy
David Hughes, Aruba’s Chief Product and Technology Officer, believes that by the end of 2023, 20% of organisations will have adopted a network-as-a-service (NaaS) strategy.
“With tightening economic conditions, IT requires flexibility in how network infrastructure is acquired, deployed, and operated to enable network teams to deliver business outcomes rather than just managing devices,” he says. “Migration to a NaaS framework enables IT to accelerate network modernisation yet stay within budget, IT resource, and schedule constraints.
“In addition, adopting a NaaS strategy will help organisations meet sustainability objectives since leading NaaS suppliers have adopted carbon-neutral and recycling manufacturing strategies.”
9. Think like a seasonal business
According to Patrick Bossman, Product Manager at MariaDB corporation, he anticipates 2023 to be the year that the ability to “scale out on command” is going to be at the fore of companies’ thoughts.
“Organisations will need the infrastructure in place to grow on command and scale back once demand lowers,” he says. “The winners in 2023 will be those who understand that all business is seasonal, and all companies need to be ready for fluctuating demand.”
10. Digital platforms need to adapt to avoid falling victim to subscription fatigue
Demed L’Her, Chief Technology Officer at DigitalRoute, suggests what the subscription market is going to look like in 2023 and how businesses can avoid falling victim to ‘subscription fatigue’. L’Her says there has been a significant drop in demand since the pandemic.
“Insider’s latest research shows that as of August, nearly a third (30%) of people reported cancelling an online subscription service in the past six months,” he reveals. “This is largely due to the rising cost of living experienced globally that is leaving households with reduced budgets for luxuries like digital subscriptions. Despite this, the subscription market is far from dead, with most people retaining some despite tightened budgets.
“However, considering the ongoing economic challenges, businesses need to consider adapting if they are to be retained by customers in the long term. The key to this is ensuring that the product adds value to the life of the customer.”
11. Waking up to browser security
Jonathan Lee, Senior Product Manager at Menlo Security, points to the web browser being the biggest attack surface and suggests the industry is “waking up” to the fact of where people spend the most time.
“Vendors are now looking at ways to add security controls directly inside the browser,” explains Lee. “Traditionally, this was done either as a separate endpoint agent or at the network edge, using a firewall or secure web gateway. The big players, Google and Microsoft, are also in on the act, providing built-in controls inside Chrome and Edge to secure at a browser level rather than the network edge.
“But browser attacks are increasing, with attackers exploiting new and old vulnerabilities, and developing new attack methods like HTML Smuggling. Remote browser isolation is becoming one of the key principles of Zero Trust security where no device or user – not even the browser – can be trusted.”
12. The year of quantum-readiness
Tim Callan, Chief Experience Officer at Sectigo, predicts that 2023 will be the year of quantum-readiness. He believes that as a result of the standardisation of new quantum-safe algorithms expected to be in place by 2024, this year will be a year of action for government bodies, technology vendors, and enterprise IT leaders to prepare for the deployment.
“In 2022, the US National Institute of Standards and Technologies (NIST) selected a set of post-quantum algorithms for the industry to standardise on as we move toward our quantum-safe future,” says Callan.
“In 2023, standards bodies like the IETF and many others must work to incorporate these algorithms into their own guidelines to enable secure functional interoperability across broad sets of software, hardware, and digital services. Providers of these hardware, software, and service products must follow the relevant guidelines as they are developed and begin preparing their technology, manufacturing, delivery, and service models to accommodate updated standards and the new algorithms.”
13. AI: fewer keywords, greater understanding
AI expert Dr Pieter Buteneers, Director of AI and Machine Learning at Sinch, expects artificial intelligence to continue to transition away from keywords and move towards an increased level of understanding.
“Language-agnostic AI, already existent within certain AI and chatbot platforms, will understand hundreds of languages — and even interchange them within a single search or conversation — because it’s not learning language like you or I would,” he says. “This advanced AI instead focuses on meaning, and attaches code to words accordingly, so language is more of a finishing touch than the crux of a conversation or search query.
“Language-agnostic AI will power stronger search results — both from external (the internet) and internal (a company database) sources — and less robotic chatbot conversations, enabling companies to lean on automation to reduce resources and strain on staff and truly trust their AI.”
14. Rise in digital twin technology in the enterprise
John Hill, CEO and Founder of Silico, recognises the growing influence digital twin technology is having in the market. Hill predicts that in the next 20 years, there will be a digital twin of every complex enterprise in the world and anticipates the next generation of decision-makers will routinely use forward-looking simulations and scenario analytics to plan and optimise their business outcomes.
“Digital twin technology is one of the fastest-growing facets of industry 4.0 and while we’re still at the dawn of digital twin technology,” he explains. “Digital twins will have huge implications for unlocking our ability to plan and manage the complex organisations so crucial for our continued economic progress and underpin the next generation of Intelligent Enterprise Automation.”
15. Broader tech security
With an exponential amount of data at companies’ fingertips, Tricentis CEO, Kevin Thompson says the need for investment in secure solutions is paramount.
“The general public has become more aware of the access companies have to their personal data, leading to the impending end of third-party cookies, and other similar restrictions on data sharing,” he explains. “However, security issues still persist. The persisting influx of new data across channels and servers introduces greater risk of infiltration by bad actors, especially for enterprise software organisations that have applications in need of consistent testing and updates. The potential for damage increases as iterations are being made with the expanding attack surface.
“Now, the reality is a matter of when, not if, your organisation will be the target of an attack. To combat this rising security concern, organisations will need to integrate security within the development process from the very beginning. Integrating security and compliance testing at the upfront will greatly reduce risk and prevent disruptions.”
16. Increased cyber resilience
Michael Adams, CISO at Zoom, expects an increased focus on cyber resilience over the next 12 months. “While protecting organisations against cyber threats will always be a core focus area for security programs, we can expect an increased focus on cyber resilience, which expands beyond protection to include recovery and continuity in the event of a cyber incident,” explains Adams.
“It’s not only investing resources in protecting against cyber threats; it’s investing in the people, processes, and technology to mitigate impact and continue operations in the event of a cyber incident.”
17. Ransomware threats
As data leaks become increasingly common place in the industry, companies face a very real threat of ransomware. Michal Salat, Threat Intelligence Director at Avast, believes the time is now for businesses to protect themselves or face recovery fees costing millions of dollars.
“Ransomware attacks themselves are already an individual’s and businesses’ nightmare. This year, we saw cybergangs threatening to publicly publish their targets’ data if a ransom isn’t paid, and we expect this trend to only grow in 2023,” says Salat. “This puts people’s personal memories at risk and poses a double risk for businesses. Both the loss of sensitive files, plus a data breach, can have severe consequences for their business and reputation.”
18. Intensified supply chain attacks
Dirk Schrader, VP of security research at Netwrix, believes supply chain attacks are set to increase in the coming year. “Modern organisations rely on complex supply chains, including small and medium businesses (SMBs) and managed service providers (MSPs),” he says.
“Adversaries will increasingly target these suppliers rather than the larger enterprises knowing that they provide a path into multiple partners and customers. To address this threat, organisations of all sizes, while conducting a risk assessment, need to take into account the vulnerabilities of all third-party software or firmware.”
19. A greater need to manage volatility
Paul Milloy, Business Consultant at Intradiem, stresses the importance of managing volatility in an ever-moving market. Milloy believes bosses can utilise data through automation to foresee potential problems before they become issues.
“No one likes surprises. Whilst Ben Franklin suggested nothing can be said to be certain, except death and taxes, businesses will want to automate as many of their processes as possible to help manage volatility in 2023,” he explains. “Data breeds intelligence, and intelligence breeds insight. Managers can use the data available from workforce automation tools to help them manage peaks and troughs better to avoid unexpected resource bottlenecks.”
20. A human AI co-pilot will still be needed
Artem Kroupenev, VP of Strategy at Augury, predicts that within the next few years, every profession will be enhanced with hybrid intelligence, and have an AI co-pilot which will operate alongside human workers to deliver more accurate and nuanced work at a much faster pace.
“These co-pilots are already being deployed with clear use cases in mind to support specific roles and operational needs, like AI-driven solutions that enable reliability engineers to ensure production uptime, safety and sustainability through predictive maintenance,” he says. “However, in 2023, we will see these co-pilots become more accurate, more trusted and more ingrained across the enterprise.
“Executives will better understand the value of AI co-pilots to make critical business decisions, and as a key competitive differentiator, and will drive faster implementation across their operations. The AI co-pilot technology will be more widespread next year, and trust and acceptance will increase as people see the benefits unfold.”
21. Building the right workplace culture
Harnessing a positive workplace culture is no easy task but in 2023 with remote and hybrid working now the norm, it brings with it new challenges. Tony McCandless, Chief Technology Officer at SS&C Blue Prism, is well aware of the role organisational culture can play in any digital transformation journey.
“Workers are the heart of an organisation, so without their buy in, no digital transformation initiative stands a chance of success,” explains McCandless. “Workers drive home business objectives, and when it comes to digital transformation, they are the ones using, implementing, and sometimes building automations. Curiosity, innovation, and the willingness to take risks are essential ingredients to transformative digitalisation.
“Businesses are increasingly recognising that their workers play an instrumental role in determining whether digitalisation initiatives are successful. Fostering the right work environment will be a key focus point for the year ahead – not only to cultivate buy-in but also to improve talent retention and acquisition, as labor supply issues are predicted to continue into 2023 and beyond.”
22. Cloud cover to soften recession concerns
Amid a cost-of-living crisis and concerns over any potential recession as a result, Daniel Thomasson, VP of Engineering and R&D at Keysight Technologies, says more companies will shift data intensive tasks to the cloud to reduce infrastructure and operational costs.
“Moving applications to the cloud will also help organisations deliver greater data-driven customer experiences,” he affirms. “For example, advanced simulation and test data management capabilities such as real-time feature extraction and encryption will enable use of a secure cloud-based data mesh that will accelerate and deepen customer insights through new algorithms operating on a richer data set. In the year ahead, expect the cloud to be a surprising boom for companies as they navigate economic uncertainty.”
23. IoT devices to scale globally
Dr Raullen Chai, CEO and Co-Founder of IoTeX, recognises a growing trend in the usage of IoT devices worldwide and believes connectivity will increase significantly.
“For decades, Big Tech has monopolised user data, but with the advent of Web3, we will see more and more businesses and smart device makers beginning to integrate blockchain for device connectivity as it enables people to also monetise their data in many different ways, including in marketing data pools, medical research pools and more,” he explains. “We will see a growth in decentralised applications that allow users to earn a modest additional revenue from everyday activities, such as walking, sleeping, riding a bike or taking the bus instead of driving, or driving safely in exchange for rewards.
“Living healthy lifestyles will also become more popular via decentralised applications for smart devices, especially smart watches and other health wearables.”
The digital landscape is changing day by day. Ideas like the metaverse that once seemed a futuristic fantasy are now…
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The digital landscape is changing day by day. Ideas like the metaverse that once seemed a futuristic fantasy are now coming to fruition and embedding themselves into our daily lives. The thinking might be there, but is our technology really ready to go meta? Domains and hosting provider, Fasthosts, spoke to the experts to find out…
How the metaverse works
The metaverse is best defined as a virtual 3D universe which combines many virtual places. It allows users to meet, collaborate, play games and interact in virtual environments. It’s usually viewed and accessed from the outside as a mixture of virtual reality (VR), (think of someone in their front room wearing a headset and frantically waving nunchucks around) and augmented reality (AR), but it’s so much more than this…
These technologies are just the external entry points to the metaverse and provide the visuals which allow users to explore and interact with the environment within the metaverse.
This is the ‘front-end’ if you like, which is also reinforced by artificial intelligence and 3D reconstruction. These additional technologies help to provide realistic objects in environments, computer-controlled actions and also avatars for games and other metaverse projects.
So, what stands in the way of this fantastical 3D universe? Here are the six key challenges:
Technology
The most important piece of technology, on which the metaverse is based, is the blockchain. The blockchain is essentially a chain of blocks that contain specific information. They’re a combination of computers linked to each other instead of a central server which means that the whole network is decentralised. This provides the infrastructure for the development of metaverse projects, storage of data and also allows them the capability to be compatible with Web3. Web3 is an upgraded version of the internet which will allow integration of virtual and augmented reality into people’s everyday lives.
Sounds like a lot, right? And it involves a great deal of tech that is alien to the vast majority of us. So, is technology a barrier to widespread metaverse adoption?
Jonothan Hunt, Senior Creative Technologist at Wunderman Thompson, says the tech just isn’t there. Yet.
“Technology’s readiness for the mass adoption of the metaverse depends on how you define the metaverse, but if we’re talking about the future vision that the big tech players are sharing, then not yet. The infrastructure that powers the internet and our devices isn’t ready for such experiences. The best we have right now in terms of shared/simulated spaces are generally very expensive and powered entirely in the cloud, such as big computers like the Nvidia Omniverse, cloud streaming, or games. These rely heavily on instancing and localised grouping. Consumer hardware, especially XR, is still not ready for casual daily use and still not really democratised.
“The technology for this will look like an evolution of the systems above, meaning more distributed infrastructure, better access and updated hardware. Web3 also presents a challenge in and of itself, and questions remain over to what extent big tech will adopt it going forward.”
Storage
Blockchain is the ‘back-end’, where the magic happens, if you will. It’s this that will be the key to the development and growth of the metaverse. There are a lot of elements that make up the blockchain and reinforce its benefits and uses such as storage capabilities, data security and smart contracts.
Due to its decentralised nature, the blockchain has far more storage capacity than the centralised storage systems we have in place today. With data on the metaverse being stored in exabytes, the blockchain works by making use of unutilised hard disk space across the network, which avoids users within the metaverse running out of storage space worldwide.
In terms that might be a bit more relatable, an exabyte is a billion gigabytes. That’s a huge amount of storage, and that doesn’t just exist in the cloud – it’s got to go somewhere – and physical storage servers mean land is taken up, and energy is used. Hunt says: “How long’s a piece of string? The whole of the metaverse will one day be housed in servers and data centres, but the amount or size needed to house all of this storage will beentirely dependent on just how mass adopted the metaverse becomes. Big corporations in the space are starting to build huge data centres – such as Meta purchasing a $1.1 billion campus in Toledo, Spain to house their new Meta lab and data centre – but the storage space is not the only concern. These energy-guzzlers need to stay cool! And what about people and brands who need reliable web hosting for events, gaming or even just meeting up with pals across the world, all that information – albeit virtual – still needs a place to go.
“The current rising cost of electricity worldwide could cause problems for the growth of data centres, and the housing of the metaverse as a whole. However, without knowing the true size of its adoption, it is extremely difficult to truly determine the needed usage. Could we one day see an entire island devoted to data centre storage? Purely for the purposes of holding the metaverse? It seems a little ‘1984’, but who knows?”
Identity
Although the blockchain provides instantaneous verification of transactions with identity through digital wallets, our physical form will be represented by avatars that visually reflect who we are, and how we want to be seen.
The founder of Saxo Bank and the chairman of the Concordium Foundation, Lars Seier Christensen, argues, “I think that if you use an underlying blockchain-based solution where ID is required at the entry point, it is actually very simple and automatically available for relevant purposes. It is also very secure and transparent, in that it would link any transactions or interactions where ID is required to a trackable record on the blockchain.”
Once identity is established, it is true that it could potentially become easier to assess creditworthiness of parties for purchasing and borrowing in the metaverse due to the digital identity and storage of each individual’s data and transactions on the blockchain. However, although it sounds exciting, there must be considerations into how it could impact privacy, and how this amount of data will be recorded on the blockchain.
Security
There are also huge security benefits to this set up. The decentralised blockchain helps to eradicate third-party involvement and data breaches, such as theft and file manipulation, thanks to its powerful data processing and use of validation nodes. Both of these are responsible for verifying and recording transactions on the blockchain. This will be reassuring to many, given the widespread concerns around data privacy and user protection in the metaverse.
To access the blockchain all we will need is an internet connection and a device, such as a laptop or smartphone, this is what makes it so great as it will be so readily available. However, to support the blockchain, we’re relying on a whole different set of technologies. Akash Kayar, CEO of web3-focused software development company Leeway Hertz, had this to say on the readiness of the current technology available: “The metaverse is not yet completely mature in terms of development. Tech experts are researching strategies and
testing the various technologies to develop ideas that provide the world with more feasible and intriguing metaverse projects.
“Projects like Decentraland, Axie Infinity, and Sandbox are popular contemporary live metaverse projects. People behind these projects made perfect use of notable metaverse technologies, from blockchain and cryptos to NFTs.
“As envisioned by top tech futurists, many new technologies will empower the metaverse in the future, which will support the development of a range of prolific use cases that will improve the ability of the metaverse towards offering real-life functionalities. In a nutshell, the metaverse is expected to bring extreme opportunities for enterprises and common users. Hence, it will shape the digital future.”
Currency & Payments
Whilst it’s only considered legal tender in two countries, cryptocurrency is currently a reality and there is a strong likelihood that it will eventually be mass adopted. However, the metaverse is arguably not yet at the same maturity level, meaning cryptocurrency may have to wait before it can finally fully take off.
Golden Bitcoin symbol and finance graph screen. Horizontal composition with copy space. Focused image.
There is no doubt that cryptocurrency and the metaverse will go hand-in-hand as the former will become the tender of the latter with many of the current metaverse platforms each wielding its native currency. For example Decentraland uses $MANA for payments and purchases. However, with the volatility of crypto currencies and the recent collapse of trading platform FTX indicating security lapses, we may not yet be ready for the switch to decentralised payments.
Energy
Some of the world’s largest data centres can each contain many tens of thousands of IT devices which require more than 100 megawatts of power capacity – this is enough to power around 80,000 U.S. households (U.S. DOE 2020) and is equivalent to $1.35bn running cost per data centre with the cost of a megawatt hour averaging $150.
According to Nitin Parekh of Hitachi Energy, the amount of power which takes to process Bitcoin is higher than you might expect: “Bitcoin consumes around 110 Terawatt Hours per year. This is around 0.5% of global electricity generation. This estimate considers combined computational power used to mine bitcoin and process transactions.” With this estimate, we can calculate that the annual energy cost of Bitcoin is around $16.5bn.
However, some bigger corporations are slowly moving towards renewable energy to power their projects in this space, with Google signing close to $2bn worth of wind and solar investments in order to power its data centres in the future and become greener. Amazon has also followed in their footsteps and have become the world’s largest corporate purchaser of renewable energy.
They may have plenty of time yet to get their green processes in place, with Mark Zuckerberg recently predicting it will take nearly a decade for the metaverse to be created: “I don’t think it’s really going to be huge until the second half of this decade at the earliest.”
About Fasthosts
Fasthosts has been a leading technology provider since 1999, offering secure UK data centres, 24/7 support and a highly successful reseller channel. Fasthosts provides everything web professionals need to power and manage their online space, including domains, web hosting, business-class email, dedicated servers, and a next-generation cloud platform. For more information, head to www.fasthosts.co.uk
Todd Salmon, Executive Advisor for Strategic Services at GuidePoint Security, on the cybersecurity challenge of keeping up with the pace of the ever-changing digital world
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This month’s cover story explores how GuidePoint Security, an elite team of highly trained and certified experts, cut through cybersecurity chaos and confusion to put control back in customers’ hands.
Welcome to the latest issueof Interface magazine!
Interface welcomes in 2023 with a need-to-know list of what we can expect from technology this year and how it can allow enterprises to gain a competitive edge in a disruptive and increasingly digital world. Faced with everything from process mining and AI to quantum-readiness and the metaverse we cut through the hype to bring you the facts.
GuidePoint Security: digital transformation in cybersecurity
“Cybersecurity is in such a reactive mode because of the sheer volume of risks and vulnerabilities an organisation faces,” says Todd Salmon, Executive Advisor for Strategic Services at GuidePoint Security. “We see a lot of copycats and repeat attacks happen, but at the end of the day it’s all about creating solutions to help combat those problems.”
GuidePoint’s elite team of highly trained and certified experts, cut through cybersecurity chaos and confusion to put control back in customers’ hands. Helping them make the smartest, most informed cyber risk decisions, and choose and integrate the best-fit solutions to build the most effective cybersecurity program, Salmon discusses the challenge of keeping up with the pace of the ever-changing digital world.
bp: a strategic reinvention
“We are investing in digital to drive process efficiency and improve insights; but also to develop our people with the skills we need for now, and the future at bp. This means we are playing to win while caring for our people through investing in their personal development,” says Head of Strategic Transformation Nick Hales.
“After setting the right foundations through various remediation and compliance initiatives, we embarked on our digital transformation journey,” adds Strategy & Transformation Manager Emmanouela Vlachantoni. “There was a clear opportunity to standardise and streamline our controls environment to reduce complexity and increase insight.”
Fairfax County: winning the IT war with cybersecurity
Meanwhile, across the pond, we learn how Fairfax County in the State of Virginia is reaping the rewards of a cybersecurity program enabling government services and keeping citizens safe. “My role is to educate our leadership to ensure they understand the business value of cybersecurity as it relates to government services. Being accountable for the security of their systems and data is a key factor in developing a successful cyber program,” explains CISO Michael Dent.
Also in this issue, we round up the key tech events and conferences across the globe and, with the help of the experts at Fasthosts, take a deep dive into the metaverse… Can virtual reality become our reality? Read on to find out.
Our cover story this month reveals how Sarita Singh, Regional Head & Managing Director for Stripe in Southeast Asia, and her team are driving financial inclusion across the region and supporting SMEs with end-to-end services putting users first
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This month’s cover story reveals how Stripe’s payments platform is driving financial inclusion across Asia.
Welcome to the latest issue of Interface magazine!
Opportunities for innovation and growth via the adoption of new technologies are everywhere. However, organisations are faced with a bewildering array of choices to help them transform and choosing the best option to drive positive disruption is a tough call. We take a look at some of these fascinating journeys…
Sarita Singh, Regional Head & Managing Director for Southeast Asia, Stripe
This month’s cover story explores the genesis of fast-growing payments platform Stripe. Sarita Singh, Regional Head & Managing Director for Southeast Asia, leads a team driving financial inclusion across the region, supporting SMEs with end-to-end services putting users first.
“We’re building products and the financial infrastructure to help our users go cross-border, beyond their domestic boundaries, to widen their markets and drive efficiencies within their financial services infrastructure. With Stripe under the hood, businesses are able to focus on what they do best without wasting time researching, purchasing, integrating, and maintaining dozens of payment technology point solutions because Stripe is a platform that offers all of them, and is already integrated.”
IAG: tech procurement linked to purpose
We speak with IAG’s CPO & VMO Claire Ledder, who reveals the transformative approach to technology procurement being deployed by an Australian market leader home to several leading insurance brands. “We’re now able to tackle sourcing and contracting with an end-to-end approach capable of measuring the value delivered.”
Portrait Photography
U.S. Department of State: facilitating diplomacy with tech
Todd Cheng Director of IT Customer Service at the U.S. Department of State, talks about the ever-evolving relationship between technology and diplomacy. “We’ve been through the process of updating the IT model at State to a new, more customer centric version of the Information Technology Infrastructure Library (ITIL).” By his calculations, these changes have benefited the organisation by reducing network disruption by some 400,000 hours of diplomacy every month.
Afni
Afni’s CISO Brent Deterding explains how breaking down the traditional and perceived barriers between security and the boardroom can transparently position cyber effectiveness as a critical enabler of improved business outcomes.
Afni’s CISO Brent Deterding
Also in this issue, we hear from Zoom on the future of work and report again from London Tech Week where an expert panel gave advice for businesses on anticipating and preparing for cyber risk against a backdrop of geopolitical uncertainty.
This month’s cover story reveals the cycles of transformation, being led by CDO Lucho Torres, which are driving the disruptive digital journey at Peru’s second largest financial services group
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This month’s cover story reveals reveals the cycles of transformation driving the disruptive digital journey at Scotiabank Peru, the country’s second largest financial services group.
Welcome to the latest issue of Interface magazine!
A customer-centric vision is often an important factor in the journey towards a digital transformation where a commitment to continuous improvement can bring scalability and lasting growth. Interface taps the brains behind some of the biggest tech successes happening across the globe today…
Lucho Torres, SVP & Chief Digital Officer at Scotiabank Peru is on a mission to leverage the trust in a global banking leader founded in 1832 and lead a transformation to create “the most relevant, simple and fast digital bank for consumers and businesses” across Peru. “The challenge was to build a digital bank with scalability and sustainability. We have created a customer-centric value proposition by building and taking to the market our own digital platforms and financial products to deliver personalised and intuitive customer experiences.”
IBM
We speak with IBM’s AI & Data guru Jean-Philippe Desbiolles who gives us a fascinating overview of his book AI Will be What you Make of It: The 10 Golden Rules of Artificial Intelligence. “I am passionate about the fact that at IBM we are transforming businesses by leveraging technologies in a broad sense of the word. And one of those key technologies is Artificial Intelligence.” Listen to our podcast with Jean-Philippe here or you can watch it below…
Digital Transformation in healthcare, education and telecomms
Also in this issue, Michael Haenelt, CIO at the Weed Army Community Hospital tells us the story of the development of a state-of-the-art medical facility at Ft Irwin, in California’s remote Mojave Desert, where a commitment to digital transformation is at the beating heart of the organisation.
Our cover story reveals a massive procurement transformation programme at Zendesk
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Procurement transformation is the hot topic this month as we speak to Rendi Miller, VP of Strategic Sourcing and Procurement at Zendesk. Miller is a procurement evangelist and transformational leader who is clearly energised as she delivers meaningful change to the function at Zendesk.
“What I’ve always enjoyed about procurement is the visibility into what the entire company is buying, from Marketing creative services to IT and Engineering technology to office furniture and everything in between.”
“Procurement has insight to trends before they become mainstream that gives us the ability to research new partners, technologies and solutions to start addressing the needs of the business early on. Being in procurement offers an awareness to nearly every aspect of the company.”
According to Miller, trust is absolutely critical to success because without that, “there is no reliability, there’s no confidence and there’s no relationship”, says Miller. “That’s something I emphasise with my team. Trust must be earned, but trust is also given. I empower them to be the leaders that I’ve hired them to be…”
Elsewhere, we sit down with Procurement Excellence Lead at Antofagasta Minerals, Christophe Le Flech, to discuss the state of procurement in the South America mining industry, and the work he’s doing to make a difference. We also talk to Convex Insurance’s Head of Procurement & Tactical Change, Vivek Pai… and discuss diversity in the workplace with Silvia Simon, LATAM Procurement Senior Manager at Mercedes-Benz Brazil. Plus, we look at 10 ways to optimise your digital procurement scouting approach with ProcureTech.
It sounds like a strange parallel to draw, but when it comes to the implementation of a digital transformation project – specifically the automation of business processes – Chief Technology Officers (CTOs) and their senior counterparts could learn a lot from the Great Britain Cycling Team.
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Digital transformation, big data and Artificial Intelligence and like phrases used before them, ‘automation’ has grown to become quite the buzzword in the world of business. In fact, there’s now so much talk about the use of technology to ‘streamline operations’, that automation is almost an unattainable panacea in the eyes of many – even in the tech sector where organisations should perhaps know better.
Yes, at an enterprise level, there are some corporate giants thinking big and really nailing it. Likewise, there are some vast organisations with dedicated project teams and six or seven-figure budgets, that become so shackled with scope creep that their automation aspirations remain nothing more than pipedreams.
There are also smaller – and often nimbler – businesses that would be ideally placed to implement automation-led initiatives large and small, but they simply don’t know where to start. Their CTO may have an articulate vision and the ‘toolkit’ to achieve it, but the all-important buy-in from the wider management team – if not the rest of the organisation – doesn’t exist.
It’s certainly a mixed bag, but it needn’t be such a minefield. This narrative will be ‘preaching to the converted’, for many CTOs. So what’s the answer and what will finally stop holding digital transformation projects back?
The aggregation of marginal gains
Organisations embarking, from scratch, on a quest for greater automation, need to stop worrying about moving mountains from day one. Instead of focusing on the entirety of what’s possible, there is arguably more value in breaking the job down into actionable and achievable component parts.
In this respect, much can be learned from Sir Dave Brailsford, head of British cycling, who took the long-suffering team from winning only one gold medal in 76 years, to seven at the 2008 Beijing Olympics – an achievement mirrored in London four years later.
Aware that aiming for gold felt like a daunting and perhaps even impossible plight, he applied the theory of marginal gains to the sport. In other words, he deconstructed everything to create a checklist of micro tasks and concentrated on improving each element by just 1% to secure a significant aggregated performance increase. The mentality centred on progression, not perfection.
Likening this to automation in business may seem like a stretch, but the same principle applies. The possibilities that automation can unlock are almost endless, so to cover everything will probably never be feasible. But by making individual systems and processes more ‘joined up’ with digital transformation – as well as quicker and slicker to execute, with an eye on best practice throughout – means even 1% efficiency gains will soon add up.
Removing digital silos
Some businesses may have far to travel on their automation journey, whereas others may have already made a start by ‘thinking digitally’.
This is something at least, because the digitisation of processes represents an important step. But what happens if these tools and technologies continue to exist on ‘digital islands’, with varying degrees of customisation and few – if any – ‘bridges’ between them to enable the data to do what it needs to. If someone must pull all the strings to make multiple products work together – with a questionable degree of effectiveness – there remains much to do.
The key to automation is to define the process that will spontaneously enable widget A to press buzzer B that activates application C and produces data point D – and so on – digital transformation!
Everything needs to work together, much like a team. And it’s OK to start small.
In simplistic terms, a business may decide to outsource its mailing so it’s saving time – and money – that would otherwise be spent licking stamps! This soon outweighs the cost involved.
But automation can be far more sophisticated too, of course. An email marketing platform can talk intuitively to a CRM tool as a sales pipeline advances, for example, before auto-updating a billing engine when a deal converts and triggering a conversion report to better understand ROI.
Without this automation, people involved in any one part of the process would still have confidence the data existed in there. However, the time otherwise required to uncover it, and then manually push it through the system, could mean the insight soon becomes obsolete and the associated opportunity is consequently lost. The real-time nature of the intel is where the value lies – much like the of-the-moment performance of the GB Cycling Team – hence the beauty of triangulating these multiple elements to create a truly integrated eco-system.
Is Digital Transformation only for big players?
In saying all this, one of the most important points to perhaps note is that automation shouldn’t be feared. Digital transformation is not necessarily a complex process that lies only within the reach of gigantic corporations with equally large budgets. Yes, data volume makes an investment in automation easier to justify. And a degree of technical competence is needed to orchestrate the integration of tools that lead to a super-slick outcome. But it needn’t cost the earth. For senior professionals who have perhaps worn the t-shirt a couple of times over, it’s better to communicate that – making it relatively easy to move forward as a result.
Secondly, automation is not trying to rid people of their jobs and replace them with ‘robots’ – a fear that seemingly shows no sign of fading. On the contrary, at a time when employees are becoming increasingly discerning about their workplace fulfilment levels, it can liberate them from burdensome, administration-centric tasks, and free up their time to focus on activities that make better use of their skills – boosting both productivity and engagement as a result.
Thirdly, the benefits associated with automation aren’t isolated solely to staff motivation and workplace efficiencies. Automation – or certainly, an automation-savvy mindset – can become the lifeblood of a firm’s scale-up strategy, which empowers the business to grow at speed, with a constant eye on cost control and service levels too. In the current economic climate, this agility – not to mention bottom line protection – has arguably never been so important.
by Terry Daniell, Operations Director at Trenches Law
Google, BT and DCMS among over 1,000 organisations offering free mentorship to independent organisations through Digital Boost
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Digital Boost, a new platform connecting organisations with digital skills founded by serial entrepreneur Sherry Coutu CBE, has today set out a bold ambition to digitally upskill 500,000 women from female-led organisations by January 2022, with 200,000 of those from BAME backgrounds. This comes as recent research revealed that 97% of charities feel insecure about their command of digital skills, while a survey conducted by BT and Small Business Britain found that 63% of small businesses lack confidence in future-proofing their business.
Digital Boost helps small organisations access digital skills through unlimited free one-to-one mentorships delivered by volunteers at some of the world’s most respected organisations including Google, DCMS, Visa, BT and The Big Lottery. Digital Boost is also working with its partners to offer specialised workshops and access to short online courses to its learners.
Since its launch in June 2020, Digital Boost has mentored more than 2,000 small businesses and charities. It currently has 1,600 partners listed on the platform and has successfully delivered multiple one-to-one mentoring sessions.
Sherry Coutu CBE, founder of Digital Boost, said, “We’re proud to work alongside our valued partners to mentor at least 1 million people who work for small businesses and charities by 31st January 2022, of which 20% will identify themselves as BAME and 50% will identify themselves as female. With our enhanced digital platform that offers unlimited mentoring support as well as commercial partnerships for potential corporates, we believe we can significantly boost the revenues of female-led businesses”.
As a beneficiary of multiple mentoring sessions, Amanda Mann, founder of Mann’s Cookies, said: “Mine is a Covid-19 business. I couldn’t imagine I would have so much fun and meet such amazing people but I didn’t have any business experience so I am so grateful I found Digital Boost. They were brilliant on our mentoring calls and they were great at helping me get to grips with the mechanics of business, showing me how to deliver great customer service and sharing tips on keeping up my social media presence.”
Three years on from Open Banking launched in the UK, let’s look at what we’ve done and where we can go from here…
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Earlier this year, UK Open Banking celebrated three years. Since 13 January 2018, regulated third-party providers have been able to integrate with bank APIs to access customers’ financial data, in an effort to break down the barriers standing in the way of seamless data sharing.
The overarching goal of this new regime was to give consumers and businesses greater visibility and control over their finances, with technology at the forefront of this mission. Specifically, the pioneering Open Banking initiative was created to enable financial technology (fintech) providers to bring innovative new propositions to the SME and consumer market.
By extension, the users of Open Banking would benefit from products that were better suited to their unique financial situation, enabling them to compare available products in order to find the best deals on the market. So, as we reflect on three years of Open Banking, the question is: how much progress has been made, and what’s in store for the future?
Increasing collaboration through innovation
The introduction of a new requirement for all UK-regulated banks to allow customers to share their financial data with authorised third-party providers introduced a new era of collaboration within a previously segregated market.
Joined by one overarching mission – namely, to drive innovation and deliver the best possible customer experience – large banks and fintech startups began forming valuable partnerships. Thanks to more efficient data sharing, incumbents, for instance, have been able to integrate propositions developed by fintechs into their own platforms, in an effort to better meet the evolving needs of the customer.
The benefits to the customer are evident: a more interconnected and open financial ecosystem, which enables them to browse available products and access the right services for their needs.
Since its inception, Open Banking has served to shift the power to the customer and increase competition within the sector. By utilising new apps and digital platforms, banking customers now have access to a fuller and clearer view of their finances. This allows individuals to budget more effectively, switch products more easily, and generally make more informed decisions.
Increasing uptake
Since the initiative was launched in 2018, Open Banking adoption among UK consumers and businesses has surged. While generating awareness about its benefits has been a slow process (a recent PwC study found that only 18% of consumers were aware of what Open Banking means for them), the COVID-19 pandemic has driven Open Banking usage.
Today, over two million users utilise Open Banking-enabled applications and services. This number has doubled since January 2020, with the pandemic likely having a strong influence on the rate of uptake.
As disruption took hold and personal finances took a hit, many people turned towards online banking and money management apps, in search of tech solutions that could bolster their financial confidence. Since the first lockdown in March 2020, almost one in five (17%) of UK adults have started using an online banking service to help with their money management goals, with this figure rising to 45% among 25-34-year-olds.
Without the advent of Open Banking, the accessibility and value of such solutions would be questionable. After all, many of these fintech solutions use Open Banking to connect directly to users’ bank accounts to provide a more tailored service.
At the same time, it has also enabled financial services providers to obtain an accurate and up-to-date view of an individual’s financial situation, as well as their past and present behaviours, in order to deliver more personalised guidance.
How will Open Banking develop?
Open Banking today generally covers personal and business current accounts, credit cards and online e-money accounts. In the future, the concept will extend to cover all financial markets – from pensions to investments and insurance.
Now that we have built the underlying infrastructure, it will become easier to build on top of this. More complicated use-cases of Open Banking will begin to develop, with competition from non-traditional players such as fintechs and challenger banks stepping in to provide a range of new services – particularly within industries that previously strayed away from large scale digital transformation.
As the ability to let information flow between applications continues to improve, new products and iterations of existing offerings will be built, integrated and modified at a much greater speed than before. We will shift away from a closed banking system to one that encourages new aggregators, service partners, and payment providers to add value to existing businesses models, and in doing so, create a range of new customer-centred financial services.
Examples of innovations that we are already seeing include services that provide personalised advice to banking customers looking to improve their credit score, and applications that enable employees to save directly from their salary.
We’ve come a long way in the Open Banking revolution, giving consumers and businesses greater control over their financial lives and the ability to choose products and services that work best for them. As we progress further towards Open Finance, this initiative will give customers greater influence over a wider range of their financial data, and offer access to enriched financial services.
Ammar Akhtar is the co-founder and CEO of Yobota, a London-based technology company. Founded in 2016, Yobota has built a fast, flexible, cloud-native core banking platform, which allows clients to create and run innovative financial products. You can follow Yobota on LinkedIn and Twitter.
A business that’s fully and passionately dedicated to ¨promote beauty to achieve personal fulfilment¨, Belcorp is creating something new for itself that’s not a cultural reset, per se, but a cultural reboot. The message behind this Latin American beauty corporation, which operates across 14 countries, remains the same – but it’s now better, stronger, even more deeply ingrained in each and every fiber of the business. What is, on the face of it, a digital transformation for Belcorp has actually been a full people-centric makeover from the inside-out – it just happens to have been driven by technology. With his hand on the tiller is Venkat Gopalan, Chief Technology, Data & Digital Officer for Belcorp, who stepped in 18 months ago to help push the digital plan, resulting in a hard press on the fast-forward button for the company’s development.
Elsewhere, we catch up with Lori Snyder CIO, Information Systems & Technology at the State of Nebraska for the Department of Health and Human Services, to see how the state is using digital strategies to battle COVID-19. Plus, we have exclusive interviews with former Apprentice winner Mark Wright, Director of Climb Online and James Shanahan, CEO Revolut Singapore. We also list 5 essential tips to building an intelligent workplace.
Almost two thirds received additional funding to accelerate initiatives…
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Coeus Consulting, an award-winning independent IT advisory, today announced findings from its annual CIO and IT Leadership Survey 2021. The survey of senior IT leaders explored how they have had to urgently prioritise and accelerate programmes during the pandemic over the past 12 months.
Remarkably, over half (53%) claimed they were able to implement a strategic shift of their entire business operations to digital and almost three quarters (68%) of respondents either strongly, or generally agreed, that acceleration helped them to digitalise more of their operations.
Half of organisations were still amid their digital journeys or in the planning stages when they had to re-prioritise and pause non-urgent initiatives to focus on operational continuity during the pandemic. In fact, 70 per cent of organisations surveyed prioritised end user solutions (EUS) such as remote working, 52 per cent prioritised operational stability, closely followed by cost optimisation (50%).
“The proficiency that businesses have demonstrated in their prioritisation and acceleration of critical initiatives is a huge triumph. Being able to re-direct resources and cutting down their time to market in digitalising the organisation is no easy feat, particularly in the throes of a global pandemic” said Ben Barry, Director, Coeus Consulting.
Despite this, the speed at which organisations were forced to adapt meant that short term and tactical business decisions had to be made, with over three-quarters (78%) of respondents stating they had implemented ‘quick fix’ solutions.
“Businesses will need to revisit these over the coming months to build on these capabilities with more permanent solutions for the future and ensure that all changes made in response to the pandemic are assessed to identify any tactical risks accepted and create a plan to mitigate, update or accept all of them” Barry continued.
As a result of deploying ‘quick-fix’ solutions, organisations were confronted with operational, as well as strategic difficulties including agreeing priority changes, implementing the solution and post implementation, each of which encompassed numerous challenges.
Challenges in agreeing the priorities for 2020 included security, which was key for over half of the respondents. This was followed by governance constraints (44%), business risk aversion (37%), employee reluctance/education (32%) and board level resistance (22%).
Fifty per cent of respondents cited cost of implementation as the biggest challenge, followed by delivery of bandwidth (42%), integration difficulties (41%) and lack of skills and expertise (37%).
Post implementation challenges included respondents experiencing negative process impacts (53%) and increased operating costs (45%). Customer and user perceptions were also adversely affected for almost 40 per cent as organisations tackled uncertainty and their own internal changes.
These factors were likely exacerbated by the fact that business and IT leaders had to make these decisions rapidly and in a short time frame, having to balance risk with maintaining operational continuity.
Additionally, 82 per cent agreed that business and IT leadership played a key role in improving ways of working and minimising disruption across the business. Furthermore, almost 70 per cent of respondents stated that IT leaders were crucial in accelerating large scale deployments in EUS and about a third prioritised initiatives in improving customer experience, increasing revenues and developing or changing products.
Almost two-thirds of organisations noted they had received additional funding to help accelerate priority projects, but a large majority of those surveyed (63%) agreed that re-scoping, undoing projects, renegotiating and stalling contracts, as well as redeploying resources, will likely cause ongoing business impacts, and we would expect the cost of doing so to be significantly high.
Despite challenges with costs, the IT budget expectations show that CIOs across all sectors are expecting their budgets to remain untouched (28.6%) or increase (22.1%) as businesses recognise that IT is a critical part of delivery in all sectors.
Barry concluded – “As we move forward, organisations must reflect on these implementations, challenges and the role of IT as they look to establish a more permanent shift to a new hybrid workforce in the future.
IT Leaders and their teams have had a great opportunity to show their value and will continue to drive the strategic agenda in 2021 and beyond. This increased visibility and the business’ dependence on IT has given them an opportunity to demonstrate that IT leads in terms of business transformation, and should be funded accordingly.”
Connected technology is of critical importance in this process, and is likely to be one of the key economic drivers going forward.
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Although we have bid a grateful farewell to 2020, the disruption and uncertainty we experienced are spilling over into 2021. If there is one thing that we learnt last year, however, it’s that we need to accelerate the pace of transformative change. Connected technology is of critical importance in this process, and is likely to be one of the key economic drivers going forward.
The digital and physical world continue to converge
2020 symbolises a turning point of adaptation to digital interactions in everyday life, be it working from home, ordering groceries or online schooling. Consumers in 2021 and beyond expect to experience a seamless blend of intertwined in-person and online interactions along the customer journey.
In the manufacturing world, we can expect the rapid growth of AI, IoT and other industrial automation technology, especially since human resources become less accessible and reliable.
Technology’s place in the boardroom
In 2020, technology proved to be a competitive advantage for some companies and a threat to the survival of others. In particular, the failure to have a genuine eCommerce presence cost many companies dearly. As a result of this, the lines between technology strategy and corporate strategy are beginning to blur. In order to survive and thrive, organisations need to assess their current tech capabilities and expand on future possibilities.
Data-driven decision making
To prepare for current changes and an unknown future, corporate and technology strategists need to have access to accurate data to analyse, identify trends, reduce wastage and inform their strategies.
The first step in this process is accurate data collection. This is enabled by Internet of Things (IoT) sensors and networks that are able to report on virtually anything, 24/7. The next step is the ability to analyse this data. Again, technology platforms with advanced analytics capabilities, automation and artificial intelligence (AI) are making meaningful analytics a possibility. By using tools such as cloud-based dashboards, organisations have the ability to:
– Identify internal and external strategic forces
– Inform decisions
– Monitor outcomes
– Develop strategies continuously and dynamically
Information technology accessed by everyone, but trusts no-one
Cloud-first, cloud-only
One of the first steps in digital transformation is modernising legacy enterprise systems and migrating them to the cloud. The adoption of cloud-based applications became particularly important in 2021, with a large proportion of the office-based workforce operating from home. In order to continue with business as usual, employees needed access to critical software and collaborative working. In 2021, organisations will adopt a cloud-first mentality when it comes to building or upgrading technology infrastructure.\
Zero trust is a must
In an increasingly digital world, cybersecurity is high up on the list of organisational risks. Zero trust security (which involves security measures that require everything to be verified) is shaping cybersecurity initiatives. In a zero trust architecture, there is no inherent trust, and every access request should be validated based on:
– User identity
– Device
– Location
– Any other variables that provide context to each connection
Access to data, applications and workloads is provided based on the principle of least privilege.
For most companies, the creation of a zero trust architecture will require third-party assistance from digital transformation experts in IoT spheres.
Supply chains move to the front office
Supply chains were once seen as ‘behind-the-scenes’ necessities. When COVID-19 hit, it quickly became evident that even the most resilient and agile supply chains were only as strong as the weakest links.
A recent survey of supply chain professionals found that 97% of respondents said that their organisations experienced disruptions related to COVID-19. The same survey found that 73% of respondents are now planning major shifts in the way they approach procurement and supply chain management.
In 2021, more and more organisations are realising that the way they conduct their supply chains can actually become a competitive differentiator. Accelerated by the COVID-19 pandemic, customers are increasingly looking for more streamlined supply chains, fast, contactless delivery and greater traceability. In addition, organisations are realising the value of data extracted through the supply chain network.
There is a growing trend to fit products with IoT-enabled sensors that provide 24/7 asset visibility from the source to the hands of the consumer. The ability to capture larger volumes of real-time data allows supply chain operators to mine this data for operational insights.
In addition, the use of drones, condition monitoring, robots and image recognition are making physical supply chains more effective, efficient and safer.
Contactless customer service
Delivery and shipping
Born out of customer desire to minimise physical contact, contactless delivery options will continue to develop in 2021. Contactless delivery is made possible by artificial intelligence-based applications and robotics.
Telemedicine
To minimise the risk of COVID-19 exposure in the healthcare sector, practices have started implementing more telehealth offerings. These include:
– Remote/video consultations
– A.I-based diagnostics
– No-contact medication delivery
Autonomous vehicles
Autonomous driving technology is set to make significant progress during 2021, with major manufacturers such as Honda and Ford announcing plans to mass-produce autonomous vehicles and launch autonomous driving ridesharing services.
Zero food waste
Food security came to light in the midst of supply and demand challenges brought about by the coronavirus in 2020. In 2021, reducing food waste is moving higher up the agenda.
The UN’s Food and Agriculture Organisation reports that more than 30% of the world’s food is lost or wasted every year. Smart technology can be used to reduce food waste, increase food security, and assist with better distribution of food resources worldwide. For example, automated, sensor-based inventory management and replenishment ensures that the correct quantities of food are ordered at the right time, completed without human intervention and inaccuracies.
Blockchain
And, finally, no series of predictions would be complete without a quick comment on blockchain technology. For the most part, the application of blockchain tech is overshadowed by its “poster boy” application—Bitcoin and other crypto currencies. However, as we move into a smarter age, the process accountability distributed ledger technology guarantees will ensure that 2021 will see greater transparency on ordering, delivery and workstream management, along with a host of tradable asset ledgers coming online. All of which will improve efficiency across operating lines and help cut waste.
Technology and transformation 2.0.2.1
These trends predicted for 2021 are connected by the thread of digitalisation and connected technology. The need for this transformation was accelerated by the ‘new normal’ necessitated by the coronavirus pandemic, which set the world on a course towards powerful new digital capabilities. Daunting as this may seem, having the right technology partners on board helps organisations take advantage of the critical technology trends of today.
Two-thirds of accounting departments still process invoices manually: only 15% are fully paperless
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Despite the increasing need to process invoices remotely as more employees are urged to work from home, the majority of companies are still lagging behind in automation implementation. Accounts payable departments are still largely processing invoices manually, according to a survey of accounting and finance professionals released today by Ephesoft, Inc.
The survey gathered responses from 200 accounting and finance professionals from 26 countries. Key findings include:
Distributing or processing paper documents
Businesses are shifting to automation of their processes – especially for high-value, high-volume documents such as invoices. However, the survey results indicate that companies are slow to change when it comes to digitally transforming invoice processing and other financial documents.
● Only 15% of respondents said that their organisation is fully paperless, which means the majority of businesses (85%) are not.
● Of those who are not, just slightly over 50% are actively pursuing a paperless environment.
● One-third (33%) of companies are predominantly paper-heavy, still far from intelligent automation.
With an average cost to process per invoice at about £11, a lack of automation is likely to keep company growth limited, leaving room for a significant increase in productivity. Modern automation has been proven to cut costs significantly, often by 80% or more, which can be reinvested in other areas.
Current technologies
When asked whether their businesses currently have document management, workflow, AP automation, RPA or artificial intelligence technologies in place, a majority of companies report having some type of document management and workflow tools system in place, but AI applications are still under-utilised. Here’s the breakdown, further showing a lack of current automation tools:
● Less than one-third (30%) employ accounts payable automation.
● Only 12% utilise RPA tools and just slightly less (11%) report using AI.
While these findings are understandable and relatable, Ephesoft predicts that new AI-powered low-code/no-code, cloud technology, which is evolving at a rapid pace, will remove barriers to entry into AI.
The AI Journey
When the question was posed, “What is your organisation’s location on the AI journey?” responses were split, with 42% saying they were in the planning stage and 40% saying they were not planning on implementing AI tools at all.
We can conclude from the data that AI has still not been widely adopted, but many organisations have plans to invest in it.
“This survey confirms that the accounting profession has lagged in adoption of newer technologies such as AI/ML, cloud and low-code/no-code architecture likely impacted by traditionally long implementation cycles and complex integrations,” said Naren Goel, chief financial officer, Ephesoft. “The accounts payable space is an ideal example where manual steps like entering invoices into an ERP system can greatly impact efficiency, so it’s exciting that we are finally starting to see innovation in this space with point solutions that are up and running in hours, eliminate manual tasks and allow accounting professionals to focus on higher value-add functions.”
The survey on digital transformation, AI, technology and automation was conducted on Nov. 5, 2020, by Accounting Today on behalf of Ephesoft. Responses are from 200 accounting and finance professionals from 26 countries, including CEOs, CFOs Partners, CIOs, CTOs, CPAs, accountants, controllers, auditors and consultants in a variety of industries, including banks, energy, government, healthcare, technology, accounting services, airlines, auto, education, large global consultancies and many others.
Industry experts say that INSTANDA’s no code platform and ADROSONIC’s insurance domain expertise will empower insurers with the agility to price risk in ways that meet the client’s needs in a changing post-Covid-19 world.
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In a significant development to accelerate the ongoing digital transformation in the insurance industry, INSTANDA, a UK-based SaaS Insurance software platform has entered a partnership with ADROSONIC, a digital consulting firm. Industry experts say that INSTANDA’s no code platform and ADROSONIC’s insurance domain expertise will empower insurers with the agility to price risk in ways that meet the client’s needs in a changing post-Covid-19 world.
Delighted over the tie-up, Tim Hardcastle, the CEO & Founder of INSTANDA, said: “Partnerships play a key role in the insurance industry, not merely for the growth and expansion of the business involved, but also for the transformation of the industry. The new partnership with ADROSONIC is exciting as it provides capability to new markets in North America, India, Middle East as well as Europe.”
Mayank, CEO & MD, ADROSONIC, said that the tie-up would provide insurers with innovative digital product and customer propositions for new markets as well as liberate insurers from inflexible legacy tech and from high-risk, high-cost and multi-year change programs.
“Given the paradigm shift that the market is undergoing, partnership models need to demonstrate not just agility and flexibility but to do so with high quality execution. ADROSONIC and INSTANDA have an outstanding track record of delivery so I am excited at what we can offer insurers to realise their ambitions and bring new ideas to market.” Hardcastle added.
“An unprecedented event like Covid-19 has left a sudden yet profound impact on the Insurance Industry and their IT Systems, as they are now subject to rigorous scrutiny following the rapid shifting of entire workplaces online that was forced due to the pandemic,” Mayank said.
“As the key decision-makers respond to the new market demands and opportunities, they are starting to question the limitations of their existing processes and legacy systems, they also had to reassess the cost base turning to a more cost-effective and agile platform which enables them to provide quicker and more responsive service to their customers and clients. In such a scenario, INSTANDA’s no code platform coupled with ADROSONIC’s domain expertise along with a wide range of digital accelerators including RPA, Data Analytics, & CRM are key in liberating insurers from inflexible legacy technologies.
These accelerators will power transformation across organisations looking at improving their ROI by dramatically reduced product launch times, underwriting and distribution costs and an unrivalled customer experience,” he concluded.
INSTANDA works with the leading carriers, MGAs and brokers in UK, Europe, North America, LATAM, Africa, Middle East and Australia. INSTANDA is the Insurance Industry’s first no-code business platform and allows insurers to break into new markets as well as overcome the drawbacks of legacy IT systems and embrace the benefits of digital transformation.
James McLeod, EMEA Director, Faethm, the article looks at how AI and automation have come to be perceived as a threat to human employability much more than any other revolution-driving technology
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Technology, AI and societal change are the two major hallmarks of industrial revolutions. It would be remiss to discuss the first industrial revolution, for example, without reference to steam power and the migration of the workforce from the country to the city, or the third industrial revolution without reference to the internet and rapid globalisation.
Today, as AI/automation and the decentralisation of labour push the world toward the fourth industrial revolution, a core characteristic of these changes has become clear: an acceleration in the speed at which specific skills rise and fall in demand. Over the past 100 years or more, the length of these cycles has dropped from decades to just a matter of years, creating one of the biggest employability challenges for businesses and individuals alike moving forward.
To stay abreast of change, companies must fundamentally change the way in which they look at skills, training and career development. This isn’t just another story about technology and AI creating as many jobs as it invalidates, but rather a need to consider how existing roles will evolve and how people in at-risk jobs can easily transition into roles where they continue to add value on top of technology:
– What needs to happen? Career development must no longer be seen as horizontal (i.e. whereby individual workers refine a particular set of specific skills over the course of their careers and/or lives). Instead, careers must also follow a lateral trajectory, expanding not just upward, but outward into new skill areas.
– How can this be achieved? Each role will have a set of transferable and non-transferable skills. By identifying which skills sit across different roles, employers can corridor existing employees into new roles lessening the need to search for brand new talent.
– Why should employers do this? Trying to keep abreast of demand for new skills by constantly hiring new talent is a costly and unsustainable strategy. Moreover, by looking at how individual processes translate to value can help eliminate bloated processes and release capacity, making roles not only more relevant, but more efficient.
The ‘Financial Sector, Threat Landscape 2020’ report revealed five top security challenges that the financial sector are currently facing, the risks of future threats, and how to spot these risks before it is too late. Here, CPOstrategy takes a closer look…
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We are no stranger to the notion of cyber security, but one industry that suffers the most from cyber security threats is the financial secretary. Key security measures within the sector have evolved dramatically with the likes of key codes, two factor authentication, voice ID, behavioural analysis, one-time passcodes, protective messaging and digital fingerprinting.
1. Ransomware
Amazingly, the term “ransomware” was only added to the dictionary three years ago. In that time however, ransomware has increased dramatically in terms of the frequency of incidents and the range of methods used to conduct them. Let it be known that the attackers are extremely sophisticated. Once they have your data, who’s to say that your data will be given back or decrypted even if you pay up. Worse still what’s stopping them coming back to attack you again? The report found that once an attack is made, the bad actor will sell the details on to their associates to go after the victim again after deployment, because the payload can still be there, activated and deactivated.
2. Internal Threats
The report takes a look at the Verizon, 2020 Data Breach Investigations Report (DBIR) where it shows that ‘employees’ mistakes account for roughly the same number of breaches as external parties who are actively attacking’ the organisation. Now isn’t that terrifying? Misdelivery within the company, by which information has inadvertently been sent to the wrong person, stands tall as one of the most common issues when it comes to the notion of insider threats. Next time you forward an email or send one to the wrong person/recipient, click on the wrong mailing list, that’s a misdelivery. In the interests of fairness, misdelivery is almost always accidental and non-malicious, but the effects can be devastating. Especially if sensitive data is inadvertently shared to the wrong recipient.
3) App Developments
There’s an app for that. There really is. Apps in the investment and finance space have grown substantially in 2020 which is of course a good thing, as the ability to invest online is quick and easy, and accessible to all. But, with demand comes rushed development. Many of these apps were developed quickly and quite frankly are not ready for cyber-attacks. So that means no two-factor authentication, no protection from appropriate regulations, are not patched or maintained properly, and do not have contingency plans in place to mitigate the effects of a cyber-attack. What that means then is personal information of app users is relatively easy to steal and sell. This can be done by creating duplicate fraudulent apps to trick the user. On these duplicate apps, the imagery and language of the genuine app is mirrored. Once the personal information is supplied, all the money involved (real and virtual) is up for grabs. And so begins the circle of ransomware life.
4) Third-Party Risks
Few organisations work on their own. Quite rightly too. Think about third parties that they use. Vendors, partners, email providers, service providers, web hosting companies, law firms, data management companies, subcontractors. The list goes on. They are all essential to business operations and a lot of these third parties share IT systems and even sensitive information through legal teams so it goes without saying that third parties may very well be an open backdoor into your financial systems for attackers to infiltrate.
5) COVID-19
Yep, even cyber crime has been affected by COVID. It is that unavoidable. Cyber criminals are continuing to target the financial sector even during the pandemic. There has been quite the spike in cyber attacks on banks, financial organisations and the third parties connected to them. Going back to simpler times before COVID-19, if an attacker wanted to sabotage a company or steal data, they would target the business itself. They’d aim their sights at the website, the social accounts, the logins and all their vulnerabilities. In response, organisations had counter measures in place. But now, you just need to target a single remote worker and the house of cards comes tumbling down.
With virtually all companies looking at AI, what are some of the key risks they need to consider before implementation?
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Today virtually all companies are forced to innovate and many are excited about AI. Yet since implementation cuts across organisational boundaries, shifting to an AI-driven strategy requires new thinking about managing risks, both internally and externally. This blog will cover “the seven sins of enterprise AI strategies”, which are governance issues at the board and executive levels that block companies from moving ahead with AI. by By Jeremy Barnes, Element AI
1- Disowning the AI strategy
This is probably the most important sin. In this case, a CEO and board will say that AI is a priority, but delegate it to a different department or an innovation lab. However, success is not based on whether or not a company uses an innovation lab—it’s whether they are truly invested in it. The bottom line is that the CEO and board need to actively lead an AI strategy.
2- Ignoring the unknowns
This happens when companies say they believe in AI, but don’t reach a level of proficiency where it’s possible to identify, characterise and model the threats that emerge with new advances. Even if it is decided not to go all-in on AI innovation, it’s still important that there is a hypothesis for how to address AI within a company and an early warning system so the decision can be re-evaluated early enough to act. Being a fast follower requires as much organizational preparation and lead time as leadership.
3- Not enabling the culture
The ability to implement AI is about an experimentation mindset. That and an openness to failure need to be adopted across the company. Organisations need to keep in mind that AI doesn’t respect organisational boundaries. Most companies want high-impact, low-risk solutions that could simply lead to optimising, rather than advancing new value streams. It is hard to accept increased risk in exchange for impact but it will come as part of the continuous cultural enablement of an experimental mindset.
4- Starting with the solution
This is the most common sin. It’s important to be able to understand the specific problems you’re trying to solve, because AI is unlikely to be a solution for all of them, and especially not blindly implementing a horizontal AI platform. Have the conversation at board level to ensure that an overarching AI strategy, and not simply quick-fix solutions, is the priority.
5- Lose risk, keep reward
As mentioned in the third sin, it is natural for companies to want to implement AI without any risk. But there is no reward without risk. A vendor motivated to decrease risk will also decrease innovation and ultimately impact by making successes small and failures non-existent. AI creates differentiation only for companies that are willing to learn from both their successes and their failures. A company that doesn’t effectively balance risk in AI will ultimately increase its risk of disruption.
6- Vintage accounting
Attempting to fit AI into traditional financial governance structures causes problems. It doesn’t fit nicely into budget categories and it’s hard to value the output. The link between what you put in and what you get out can be less tangible or predictable, which often makes it harder to square with existing plans or structures. Model the rate of return on AI activities and all data-related activities. This demands that these activities affect profit (not just loss) and assets (not just liabilities).
7- Treating data as a commodity
The final sin concerns data and its treatment as a commodity. Data is fundamental to AI. If data is poorly handled, it can lead to negative impacts on decision-making. Data should be treated as an asset. The stronger, deeper and more accurate the dataset, the better models that you can train and more intelligent insights you can generate. But, at the same time, when personally identifiable information is stored about customers, it can be stolen, risking heavy penalties in some jurisdictions. You need to build towards data from a use case rather than invest blindly in data centralisation projects. So, now you know what not to do. Here are some of the simple things that you can do to move ahead. First, talk to your board about how long it will take to become an AI innovator, modelling it out, rather than simply discussing it conceptually.
Second, prepare for change and put in place monitoring. AI shifts all the time, so you’ll want to regularly check in to adjust and pivot your strategy. It’s important to develop a basic skill set so you can redo planning exercises with your board. Third, model out risks in both action and inaction. But don’t model them in a traditional approach, which is to push risk down to different business units and then compensate those units for reducing risk rather than managing trade-offs. Instead, view those trade-offs in terms of risks and rewards, and start to think about how you are accounting for the assets and liabilities of AI. Ultimately, you want to start to model what is the actual rate of return for all these activities that you are doing. Then benchmark it against what you see in other companies from across the industry, and that will give you a good picture of the current situation and where to go.
With a rise in immersive training and workouts on demand, connectedness matter most…
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In what is almost a redundant statement, due to the very obvious nature of it, technology has taken over every facet of the modern world. From the way we eat (ordering a takeaway or watching a YouTube cooking tutorial) to the way we purchase the very clothes on our backs (via H&M, Zalando etc.), technology is right there as an enabler. In fact, in 2020, global retail sales are projected to amount to around $26.tn dollars, with an estimated 1.9bn people worldwide purchasing goods (including food) or services online.
Go back just one year to 2019, and e-retail sales surpassed $3.5tn worldwide. The fact of the matter is, technology has made this possible and it will continue to drive these numbers to almost unimaginable levels. The really fascinating thing about this however, particularly in a year beset by lockdowns and restricted movement outdoors, is how many of these transactions were made from home and how much of that $3.5tn has been spent in the palm of our hands?
In all the talk of global markets and industry being disrupted and revolutionised by technology we often focus on those trillion dollar ones because they are the traditional ‘big hitter’ industries. Over the past decade however, one industry sector has seen incredible growth all over the world and technology (to no surprise) has seen that growth take on a whole new level. In 2019, the global fitness and health club industry exceeded $96bn. There are more than 201,000 health and fitness clubs worldwide and more than 174mn global members. It’s clear to see; the health and fitness space is not to be sniffed at. One of the biggest, if not the biggest, ways in which technology has redefined the fitness industry is through on-demand services. Like everything else in our lives, we want it and we want it now. But for Jean-Michel Fournier, CEO of Les Mills Media, it’s important to remember what people want with their fitness experiences before getting lost on working out how to provide that to them through technology.
“We are more and more connected,” he says from his home gym in San Francisco. “Connection in fitness is very important. Being able to be part of a community and believing in something bigger than you is way more motivating than exercising by yourself and not being able to share what you achieve or what you’re doing. It’s about trying to connect with people who have the same objective, or same experience or someone who can advise you. So that community is very important and with technology now you’re able to be engaged and supported by your community, anywhere, anytime.”
That sense of a shared community, through health and fitness, defines the very core of Les Mills. Headquartered in Auckland, New Zealand, Les Mills is on a mission to create a fitter planet not by making people work out but by helping people fall in love with fitness so that they want to work out.
Les Mills provides workouts that are licensed by 19,500 partners in 100 countries around the world and has a tribe of 135,000 certified instructors to deliver the likes of BODYPUMP, BODYCOMBAT and GRIT workouts to millions of members. With the future of fitness merging between physical and digital, the company has led the charge in delivering immersive training and workouts on demand. This is where Fournier, a fitness fanatic and a student of Silicon Valley, looks to continuously drive engagement with members and it starts with that sense of connectedness and love affair with fitness.
“Actually, I don’t really care about technology. Technology for me is an enabler. Technology’s here to help improve the life of our community,” he laughs. “It’s really my very first company where I’ve seen how we help people to live a better life. To feel better when they wake up in the morning, and do the exercise and fall in love with our classes, where people are doing body pump and body combat on a daily basis and they share their pictures, their achievements through the community. It’s so exciting when I see that and that’s what feeds me, honestly.”
The health and fitness space is notoriously costly and often seen as a luxury, pricing people out entirely. So surely technology and on demand services would simply follow suit? Fournier recognises this, recalling the unfortunate passing of his father over the past few years and how that had made him rethink the role of technology in fitness. “Before my father passed away, he told me that he wished he could go back and be in shape and feel proud of his physical fitness,” he says. “That really impacted me. It made me ask one question; how can we help people get better access to fitness services. The answer is through technology.”
Fournier believes that technology is the key to democratising fitness services, making it truly available to everyone. Les Mills offers all of its fitness programs and workouts, together with advice and FAQs, through a simple and easy to use mobile and tablet app. This app will capture all kinds of data from its members and their activity and feed it back to them in a way that is personalised to each user. While we are competitive by our very nature and we do crave the shared community that Fournier speaks of, we all have our own personal goals and our own achievements that we strive for. But how can an app provide personalised experiences for well over a million users all over the world? The answer is, again, technology. Specifically Artificial Intelligence and Machine Learning.
“The technology allows us to think about things that are perhaps within our subconscious that impact our exercise,” says Fournier. “When are we most motivated to exercise? How does our sleeping habits impact our performance? At what point during a day am I going to get the best results? These are all things that AI and Machine Learning will allow us to think about and understand better. It’s really opening everyone’s eyes and making that process of falling in love with fitness that little bit more seamless.”
Machine Learning, while not a new concept, is still in its infancy in terms of global implementation. Fournier believes that we are “at the beginning of a tsunami” when it comes to Machine Learning and that when it does become a norm, personalisation will come naturally. He compares the concept of personalisation in fitness to that of other streaming on-demand services like Netflix. Personalisation in those platforms can only stretch as far as presenting films that you like based on your activity, or personal lists you create. In fitness, the variables are so sparse and unique to each individual that a “one service to many” approach simply will not work.
“Technology in the fitness spaces creates a sense of accountability with both the community and the coaches” says Fournier. “You are starting to see more and more coaching platforms out there and we are doing some experimentation with this at Les Mills, where people have a coach in their pocket. Now they are connected with the coach and the coach is going to communicate directly and check on your performance. They look at the data and see that you’ve done the workout and congratulate you for it. Then you feel good about it.”
Fournier admits that it also works both ways, thanks to those extremely different variables; “Say you haven’t done it, the coach can ask you why. It’s because you’re tired, or you’ve hurt yourself. The coach can then work with you to adapt the workout. So that’s going to create this accountability and technology is going to help to create this connection between your data and your community. There’s going to be this golden triangle of information here.”
The benefits of technology are clear to see; the personalisation of the user experience comes directly from it, so Les Mills should just go ahead and throw all of its eggs into the technology basket right? Wrong. Les Mills, since the very beginning back in 1968, is a business built on the foundations of family and community. Right from the top with Phillip Mills himself, to his wife Jackie and children Diana and Les Mills Jr, there is a culture that looks at fitness services and exercises and marries that with technology that can spread that culture all over the world. The technology will never drive the business, the community will. This in itself brings an interesting challenge to the table, yes Les Mills wants to serve the world and help each and every one of us, but it’s also a business and a business will also be driven by revenue and bottom line results through innovation. “So how do you innovate? You need to be sure you have a good understanding of the mission,” says Fournier. “At the end of the day if there are people out there fleeting the next best tech thing in fitness and they’re being more successful, good for them. At the end of the day the mission for Les Mills is not to conquer the world, or to be a dominant company. At the end of the day, we are here to really help people.”
Les Mills is driven by people, for people. That is abundantly clear. Personalisation is one challenge that the company faces and for the most part succeeds in, but what about the actual user experience? How easy is it for someone to log in to the CMS, search through the copious amounts of workouts and then stream those workouts in a truly seamless experience? Les Mills, like many businesses right now, works to provide an omnichannel experience for users so they can indeed access it anytime and anywhere. But omnichannel is a word that has fallen into the trappings of many other keywords in technology right now. How does the company look to move away from simply following a trend and offer a true omnichannel experience?
“It’s hard,” laughs Fournier. “Not everybody has an internet connection at 100 or 200 megabytes. Not everyone has the same bandwidth and capabilities to stream. These days there are a number of successful platforms out in the world, which makes it easier. Having streaming capabilities and adding a strong architecture while working with the best CMS platform out there is critical. Around four years ago, coinciding with when I came into the business, we laid down a very strong and robust platform that can support millions of recurrences and millions of subscribers, to be sure we can provide the quality that our users need regardless of their situation.”
The lines between health and fitness and digital are increasingly blurring and reaching a point as to where we may not be able to think about exercise and fitness without a livestream, at home experience. As with any technological shift, there is also a generational shift running alongside it. It isn’t simply a case of older generations of gym users and fitness professionals suddenly pivoting to digital or being alienated as the world around them becomes an increasingly digital one. As we have seen in many other industries, it is not that black and white and it comes as no surprise that this is something that Les Mills understands more than most.
“If someone wants to enjoy our content on an app, they can. If they want to enjoy our content in a live streaming class, they can. If they want to enjoy our content in a live class with a real instructor they can do it as well,” says Fournier. “At the end of the day we are a content provider. What we do is create amazing fitness choreography linked to music and we do so in a way that is truly accessible to all and for all.”
In 2020, the world was forced to stand still as it became gripped by the coronavirus pandemic. With lockdowns and restrictions put in place to protect the lives of people the world over, this closed a lot of doors for the likes of restaurants, retail stores and yes; gyms and fitness centres. One could be forgiven for thinking that Les Mills, pioneers in the streaming on demand space for fitness, were well prepared for this and suffered minimal impact from this. “Our customers are those fitness clubs and the community centres that provide Les Mills classes to their communities,” reflects Fournier. “So we were hurt there. Everybody moved to digital, which was great and thanks to the great work we did in previous years in building a robust platform we were able to absorb the millions of recurrences into our platform and keep the right level of stability.”
For Les Mills, it has always been about the community and when that community is forced to stay indoors and to stay away from the physical connectedness, the focus changes slightly. Connected community has always been a cornerstone of Les Mills, but in these difficult times the company changed tact and became much more connected to its community than ever before. “I’m very proud of the Les Mills team because we really focused on what was important. The focus was really on responding to the customer needs,” beams Fournier.
“People wanted more connection, so we generated some live streaming classes. They wanted to talk with their instructors live, so we did a lot of live Q&As that were pretty amazing.”
Fournier points to one example where the Program Director, Glen Ostergaard, presented a live streaming class to over 25,000 people worldwide. Just a few short years ago, this would have been unprecedented even for Les Mills and yet here it was, leading one of the largest live streaming fitness classes in the world and exceeding all expectations.
Elsewhere, in the absence of being present in classes and under the watchful eye of a trainer, Les Mills needed to think about how it could leverage the 140,000+ fitness instructors around the world and enable them to connect with the people. “These people aren’t just the faces you see on our apps and workouts, they are the community who run the classes in centres and in gyms,” says Fournier. “They understand fitness, they understand health and wellness and they are a part of the whole community so we started to connect and to create a networking effect, connecting the expert to the community that has a need. It has been quite amazing to see this level of engagement and communication with instructors and seeing how they can exercise better.”
Right, the future and what it will look like for many remains uncertain. The last year has taught us to rethink our perceptions of how industries can and should operate and has forced a lot of businesses to rethink their operations. In some cases, this has created great opportunities and change for good. For fitness and exercise, which as we know was already going through it’s own evolution prior to 2020, this evolution and convergence of fitness and technology will continue at an incredible pace. As we talk of new norms, what does that actually mean for Les Mills? Can it ever go back to what it was before? “Some people enjoy exercising from home. Some people are enjoying working out more outdoors and hiking or going to the park and doing their exercise routines there. And you will always have people missing their fitness club,” says Fournier. “Human nature will always go back to convenience and people will want to go back to the convenience of a fitness club or a class.”
“I firmly believe that club operators need to evolve and they need to focus on their members.There are an increasing amount of members who are outside the club as we’ve discussed. You see the evolution right now, more and more are embracing digital, creating some challenges and motivating people to exercise outside of the club. It’s a pretty big shift and one that’s going to continue, so we have to continue to look at our offering and how we can continue to serve our community in the best way possible.”
ServiceNow research highlights opportunities for organisations to boost productivity as today’s new pace of working creates the perfect environment for innovation
The Work Survey gathered opinions from 900 C-suite leaders and 8,100 employees across 11 countries, including 100 C-level executives and 1,000 office workers in the UK. It found that, despite 96% of UK leaders and 87% of UK employees stating that their company transitioned to new ways of working faster than they thought possible during the initial lockdown, many departments would not be able to implement new digital processes within a month in the event of another major disruption, such as the one we are facing now. Only a minority of UK leaders believe that customer service (37%), finance (38%) and IT (39%) could introduce new workflows within 30 days.
This challenge is exacerbated because most businesses still have a digital disadvantage, with 98% of UK C-level leaders admitting to still using offline processes. These include:
“Organisations innovated rapidly, and initial sprints enabled them to react to the immediate COVID-19 challenges,” said Chris Pope, ServiceNow’s VP Innovation. “Some decisions made were knee-jerk and rapid, but at what cost? There may be good short-term gains, but are they ‘match fit’ for our new ways of working? For organisations still struggling to integrate and implement a fully integrated workflow system, the future of work will not arrive, and soon they’ll fall behind.”
Worker safety is paramount
The survey also showed there are doubts when it comes to workplace safety from both UK leaders and UK employees.
“The critical challenge for UK organisations will be balancing the immediate need for business continuity with the personal needs of their employees,” said Pope. “2020 has been a difficult year for a lot of people. Many have seen restrictions over the past several months, which look set to continue through the winter. Businesses need to lead with compassion and combine empathy with meaningful action to help their employees navigate the months to come. In this distributed working environment, how organisations handle the moments that matter, from when a hire joins to when they leave, not only determines talent retention but will also contribute to overall business continuity and success.”
Business leaders split on return to office preferences
UK business leaders are also divided on how to keep their company most productive. While 49% want to maintain new ways of operating once the crisis subsides, 51% are keen to return to business as closely as it was prior to COVID-19, indicating a divide in approach.
Despite 57% of UK employees feeling they now have a better work-life balance, both UK leaders (99%) and UK employees (80%) have concerns about how remote work will impact their business moving forward.
The research indicates that leaders are prioritising speed of business while staff care about the human side of working. In terms of the largest challenges posed by remote work, UK leaders are most concerned about extended timelines for new releases or innovations (48%). Conversely, UK employees see reduced collaboration (48%) as their largest worry.
More information about The Work Survey can be found by accessing the survey findings slide deck and infographic.
Survey Methodology
Wakefield Research fielded an online quantitative survey in September 2020 to 900 C‑level executives and 8,100 office professionals (employees) from companies of 500 or more employees in the following countries: United States, United Kingdom, France, Germany, Ireland, Netherlands, India, Japan, Singapore, Australia, and New Zealand. While Wakefield surveyed across industries, the findings highlight meaningful differences from employees in the following five key industries: financial services, healthcare, manufacturing, telecommunications, and public sector.
We catch up with digital strategist Dr Paul J Bailo, who reveals the third part of his digital transformation masterclass…
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I believe that our final chat within the Digital Transformation Trilogy is based around culture…
The first of our trilogy into what constitutes a successful digital transformation centred around leadership and this was followed by planning. But the glue to keeping this all together is the culture. And culture’s very hard to define for a lot of people, but it’s really the essence of what your organization is about.
It’s truly understanding what your value systems are. When we think of who we are and what we believe we bring to an organization – our beliefs, our religions, our upbringing and what mom and dad taught us – we bring in our feelings of how we see the world. These are basic perceptions, deep, embedded thoughts in our minds, shared beliefs, and even unconscious feelings, right? Who we are and what we are as human beings have developed through where we lived, what zip code we lived in, our friends, our family, religion and background. And these are the values we bring into an organization, which are fundamental to this idea of culture. So, you’re mixing all these different values in order to drive a digital culture, in order to set the right mindsets and behaviors that could be shared with all the members of the organization.
When we talk about digital culture, it’s usually about organizational change and transformation…
Historically, organizations talked about siloed use of digital, but now we’re talking about how every department needs to be digital. When you start talking about keeping everything in a small group and collaborating, we’re saying, “No, digital is everywhere in every aspect of the business.” These are traditionally very hard things for organizations to develop in their culture. And it’s rooted in this idea and belief of who this organization is and what they stand for. And this digital culture needs to be reinforced on a daily basis from the executive leadership down to the frontline people. The culture is the foundation for the business’ success in digital. It’s this stable environment in which organizations behave and hold everyone accountable. I think of culture almost like baseball in a sense.
Baseball? How so?
So, baseball is a set of rules and every player knows that these are the rules. There’s a first base man, second base person and third base person. There are rules and regulations on how you behave in the game of baseball, so when people, the players go out in the field, everyone knows what to do. With our digital culture we need to know the norms that we believe in, and the values we hold true, and the actions we expect. These actions have rituals and behaviors and routine processes that are digital, and there’s a digital culture, which basically serves their structure. These structures are a digital structure of org charts, and products, and mission statements that build the digital culture, in order for organizations to be very successful in the execution of digital initiatives. It’s this idea of the digital culture driving the actions, the mindsets, and driving the mindset at the root of the cultural change that must exist, in order for organizations to be successful in this current world that we’re living and the constant change.
The focus of digital is not just about the actions alone, it’s about the actions and the change that must happen in our heart, minds, and souls in these organizations that are transforming to be digital. It’s who we are and what we stand for, and consistently reminding ourselves and the employees, and the team members, and the shareholders of what we stand for in this digital culture. It is the mindset and behaviors that we agree to. and police, to hold everyone accountable. Understand that by doing this in our culture, they will reap the benefits of this digital change and digital landscape by agreeing that this is how we’re going to support each other in our overall digital culture: the values, the behaviors, how we talk to each other, how we behave with each other, how we execute as a team together.
What are the tangible benefits to this cultural approach?
It’s through minimal disparity and a sharing of the high risk of failure. Support is built into the culture. Taking a massive risk is built into the digital culture. It is extremely hard to change the culture because you’re truly trying to rewire people’s minds. And in legacy organizations, most people hate change, so you have to think about the power structure in this idea of digital culture, and this idea that decisions need to be made quickly, efficiently, very fluidly, and to constantly evolve in this idea of continuous improvement, which means that the culture will be evolving with it also. It’s the values and beliefs that the organization hold as one. It also is the emotional piece. It’s truly, how do you want to work? Is this a place that you want to belong to? Are your personal values aligned with the digital values of this organization? What are the values, right? The values that this organization holds true in this digital arena, are a critical part of the culture, absolutely critical.
Digital is forefront and the lifeblood of these organizations that must have a digital culture in order to survive. There’s no way companies are going to survive – banks, financial institutions, insurance companies – if they continue to behave in the way they’re behaving. Clients will not come to them, and will leave them in droves, if they are not bleeding edge digital organizations that have a culture pushing the envelope in transformation and change. Even the idea or ideas of decision-making, in a digital arena, are fast and furious. It’s not this big, long, legacy type of committee, in order to say these are now the decisions. It’s fast and furious in order to keep up with the marketplace. It’s the idea of strategy on a continuous, unending basis. It’s the idea that digital will change the way organizations conduct business.
It’s seeing the power shift within an organization?
Right! This digital culture is driven by the outcomes. And it’s this idea of digital culture which causes this power shift in the organization. And this is very egotistical, right? This idea of digital culture is a power grab for some people. It’s a mindset rewiring. It’s a behavioral rewiring. It’s an adjustment of values and behaviors. It’s a way of policing each other in a way that might make some people very uncomfortable. When we’re thinking about this, it’s this idea of culture which is one of the core pillars of a digital organization, and looking at these digital organizations in order to be much more efficient and effective in this brutal environment we’re currently in. It’s also building relationships, understanding that the idea of digital culture is a never-ending learning environment.
Apple doesn’t have the best products or the best services, but they react to the market extremely quickly. They react to it because they have a culture of learning, both on the soft skills and the hard skills. They understand the challenges of digital technology very quickly because their culture supports this idea of never-ending learning. A true digital culture within the organization is a learning institution. A digital culture in an organization is an organization that takes care of its employees and upskills them. It identifies the skills that employees need to be competitive, identifies the skills that organizations need in order to drive cultural digital change.
When we talk about digital culture, we’re discussing a massive shift in the way organizations think and behave as well as the organizational structure, the power structure, and executive mindset change. It’s really this idea that digital skills are required in every level of leadership, that training is necessary and the best practices of digital are required.
The new issue features exclusive content from Marsh UK, HPE, and Rim of the World Unified School District…
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Welcome to the latest issue of Interface Magazine!
This week’s cover star is Alistair Fraser the CEO of UK Corporate at Marsh who has given us an exclusive insight into the massive transformational change at the insurance brokerage, that seeks to help enterprises survive and thrive during a global pandemic…
The COVID-19 pandemic’s economic and social impacts are driving significant shifts in global political risk — introducing new dynamics and accelerating existing geopolitical megatrends, such as trade protectionism and the transition to a multipolar world order.
“We segment our service delivery to clients based on their size and needs around risk and insurance,” explains Fraser, from Marsh’s Bristol office. “Our role is to advise our clients on their insurance and risk requirements so that they can manage risk in a more controlled way, helping them to protect their business, roll out new products and services, and continue to thrive.”
Elsewhere, we speak to Erik Vogel, Global Vice President, Customer Experience at HPE to see how the global, edge-to-cloud Platform-as-a-Service company is transforming the customer journey with GreenLake to provide an ‘everything-as-a-service’ offering…
Plus, we have the third and final instalment of digital strategist Paul Bailo’s Digital Transformation masterclass, and an exclusive with Mads Fosselius, CEO and Founder, Dixa who reveals the secrets to succeeding in this ‘new world’. And we speak to Michelle Murphy, Superintendent of Rim of The World Unified School District, who explores how a digitalisation of the classroom begins and ends with the success of the student in mind.
A new study from Business Fibre reveals the best cities to be a tech student around the world
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A new index by Business Fibre has analysed 34 of the world’s Organisation for Economic Co-operation and Development (OECD) capital cities to find 2020’s best cities to be a tech student. The index has analysed each city according to metrics such as the number of universities offering technology and engineering courses, total tech companies and employees in each city, the monthly living cost and the top cities investing in tech-related research. See the index here.
The top 10 cities to be a tech student
To find the world’s top cities to study technology, we have ranked each city according to a series of metrics to find the overall winners for those looking to start their career in technology.
The metrics explored include budget spent on tech-related research, the number of people employed in professional, scientific and technical sectors, tech companies, monthly living costs as well as the number of top universities offering technology and engineering courses.
Introducing the top 10 cities to be a tech student…
London, UK
Berlin, Germany
Jerusalem, Israel
Bern, Switzerland
Seoul, Korea
Stockholm, Sweden
Paris, France
Canberra, Australia
Rome, Italy
Tokyo, Japan
Top cities contributing to tech research
Exploring Technology research spend, the study also finds the top cities who are consistently investing in technology research. This has been calculated by looking at the % of the total GDP spent on research.
Rank
City
Research Spend (% of total GDP)
1
Jerusalem, Israel
4.8
2
Seoul, Korea
4.3
3
Bern, Switzerland
3.4
4
Stockholm, Sweden
3.4
5
Tokyo, Japan
3.2
6
Berlin, Germany
3.1
7
Copenhagen, Denmark
3.1
8
Vienna, Austria
3
9
Helsinki, Finland
2.7
10
Brussels, Belgium
2.7
The highest-ranking city is Jerusalem, which ranks high across all metrics and is the 3rd best city for tech students overall. The top three cities for tech-related research also include Seoul, spending 4.3% of the GDP, followed by Bern at 3.4. All three cities also rank high for the best universities and overall top cities for tech students.
Top 10 universities to study technology worldwide
Based on the top 10 cities to be a tech student, we wanted to find the best universities in each city for aspiring students. To find the best universities BusinessFibre looked at metrics such as the total number of students, faculty staff and the number of international students. This alongside each universities global subject ranking for Engineering and Technology make up the top 10 tech universities in the world. The monthly cost of living has also been included so that students can be sure they’re studying at the best overall tech university.
Rank
University
Worldwide ranking (Engineering and Tech 2020)
City
1
Imperial College London
7
London, UK
2
Technical University of Munich
25
Berlin, Germany
3
Technion – Israel Institute of Technology
179
Jerusalem, Israel
4
ETH Zurich – Swiss Federal Institute of Technology
4
Bern, Switzerland
5
Seoul National University
22
Seoul, Korea
6
KTH Royal Institute of Technology
30
Stockholm, Sweden
7
Ecole Polytechnique
57
Paris, France
8
The Australian National University
71
Canberra, Australia
9
Sapienza University of Rome
127
Rome, Italy
10
The University of Tokyo
21
Tokyo, Japan
Comment from Ian Wright: “With technology arguably being the fastest growing and most profitable industry in the world, we wanted to find the best cities in the world to be a tech student as well as the top cities funding technology-related research.
It’s clear from the research that London, Berlin and Jerusalem are the best cities for students, while Seoul and Bern join Jerusalem at the top for investing in technology-related research.
For those who don’t want to spend a ton of money on their education, Seoul National University is a great option that offers a lower living cost while still having a good global university ranking.”
While the virus has presented many challenges, it has also opened up opportunities for increased industry security and customer relationships. Agnė Selemonaitė, Deputy CEO at ConnectPay, explains.
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1. Increased industry security
Banks and other financial institutions have been a major target for scammers since the beginning of the pandemic; in fact, cyberattacks between February and April alone spiked an astonishing 238%. The increased volume of threats has encouraged companies to face the situation head-on and implement new safeguards.
“Putting more safeguards in place will benefit market players long after the crisis has blown over, as market players will be better equipped to deal with the constantly evolving digital threats,” says Selemonaitė.
2. Growth of digital payments market
Alongside the World Health Organization encouraging us to go cashless, the crisis has stimulated the growing amount of e-payments. Selemonaitė notes Sweden’s example: amidst the uncertainty, Sweden’s central bank signed an agreement to gain access to EU TIPS platform, which will act as the basis for the country’s own platform for instant payments.
“Sweden’s approach shows that in order to be in a better spot to satisfy increasing demand for faster, more convenient services – you need to be proactive,” Selemonaitė explains. “We follow this approach too; having realised our clients’ needs for greater options amidst quarantine, we integrated more payment methods into our Merchant API.”
3. Accelerating digital banking development
As banks had to severely limit their working hours during the lockdown, digital banking picked up the slack to accommodate the financial needs of people working from home. “As the new wave of customers sieged the system, faster development of banking services took precedence,” says Selemonaitė. In the US alone, over 45% of people have changed the way they bank amidst the crisis, and according to a European customer survey by McKinsey, there has been a 20% increase in digital engagement.
4. Enhanced customer experience
The aforementioned McKinsey survey showed that people who are highly satisfied with their digital banking experience are two-and-a-half times more likely to open new accounts with their existing bank than those who are just just satisfied. The aftermath of COVID-19 is expected to continue down the path of developing simplified UX to attract and retain clientele.
“Although requiring meticulous work, constant UX evaluation can greatly benefit product credibility and client retention, for instance, our first UX update led to doubling our monthly conversions,” says Selemonaitė. “It is likely that we will see a more customer-focused approach in the post-crisis industry too.”
5. A catalyst for fintech companies
The ’08 financial crisis gave a boost for the fintech industry, as, at the time, people were losing trust in the system, and in legacy financial institutions. In the aftermath, some entrepreneurs parted ways with the concept of traditional banking, aiming to present the market with a more technologically sophisticated solution.
“This time, the crisis could have an even greater impact for fintechs, as well as regtechs, as they rely on solutions fintechs can develop,” adds Selemonaitė. “Unfavourable circumstances drive the need to innovate across interconnected sectors.”
Marius Galdikas, CEO of ConnectPay, explains the role of digital finance during a pandemic, and how it has changed society forever…
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Could you tell us a little about your background?
I originally come from the field of technology. I’m a physicist, and I’ve always marveled at engineering and technology – digital technology, specifically. Through the years, I shifted into products and then into fintech, which was very exciting to me, because fintech is about people and technology. It’s about good people that understand regulation, understand business and understand technology. I am now the CEO of ConnectPay.
Data shows that cyberattacks on financial institutions spiked enormously between February and April this year – why is that?
I think the main reason it happened is actually at the core of the pandemic; the pandemic means people are locked up at home, so you end up with many more users of digital financial services than there usually are. Cash is unusable at this time, when you’re locked up, so you have a lot of new customers in digital finance – some of them are tech savvy and others are not. There’s a lot of people that never used digital financial services, and now they must. So you have this influx of customers into the market, that’s number one. Number two, governments reacted and we had these stimulus programs released, which means there’s a lot of funds being distributed through different programs. And many of those funds are meant for relieving the consequences of joblessness.
So you have a lot of new funds moving around and, because all of it is happening in the digital finance area, I think that stirred up the whole fraudster community. Fraudsters are working hard, now, to try and use the situation to steal funds from people, which results in information security threats and cyber attacks. Cyber attacks are means of achieving the goals for fraudsters.
How has cyber security adapted to combat this issue?
It’s a very big challenge to tackle. Number one is, all of the financial services providers that already operate online, they have their assets online, they have the required technology and so on. Could that have been changed so fast? No. Information security requires a lot of work and insight, and it’s a lengthy process to deploy specific tools to combat that. So I don’t think much has changed, but I think a realisation came that fraud prevention is now a very important area.
As well as increased security, what have been some of the digital baking trends since the emergence of COVID-19? How have people changed the way they handle money?
The stride towards a cashless society has obviously been accelerated, forcefully. Some countries and some companies will do better than others, but I think majority of the change is yet to come, because the pandemic will result in economic hardship and economic hardship will result in changes, in innovation, just like we had in the 2008 crisis. That gave birth to Bitcoin crowdfunding, sharing economies – all of that was an outcome of financial crisis, and I think we will see something come up that we cannot even imagine right now. What is the driver for those changes? Previously in 2008, there was a huge loss in trust towards financial institutions. The financial sector was the reason behind the crash, and so trust was lost, and all of these instruments – crowdfunding, sharing economy, blockchain technology – were targeted specifically at, “Hey, we don’t trust financial institutions anymore; what can we do to exclude them from the economy altogether?”
So what will happen now, I think, will be the same, depending on the size of the downturn. I’ve been hearing that in the Western and European developed markets, countries have been hit very hard, financially, by the pandemic. This will continue; there will be financial problems. It’s different because, previously, everybody lost jobs and salaries went down. Now, there’s a different aspect to what the hardship will be like, and it will result in something new.
What are your thoughts on a cashless society? Do you think it’s inevitable or are there barriers? And if it does happen, how far away do you think it is?
I do think it’s inevitable. I think the entire world is going towards a cashless society at different speeds; for example, the Nordic countries are the biggest cashless societies in the world, whereas the UK is probably five years behind them. In the US, cash is still very important –people love cash in the States – so they’re about 10 years probably behind the Nordics. However, the direction is the same. It’s all going towards cashless. The reasons for it is obviously internet penetration and mobile phone penetration – those are the key factors towards how fast will we get to cashless society, country-by-country. But also, what we need to understand is that cashless society also sort of puts a strain on the society as a general, because elderly people might be excluded from this market or might have trouble or problems adapting to the cashless environment. However, sometime, we will all be there.
The push towards the cashless society is driven by two things: one is the new consumer. These are new people, the new generation, and exchanging funds should be as simple as messaging or using social media. So one driver is this new generation that drives the digital economy and the cashlessness, because they live in the digital world. The other part is the actual financial institutions that drive the cashless society, but their reasoning is different – it’s efficiency. They want to cut costs. They don’t want to have physical retail locations. Nobody wants to transport or count cash. There’s fraud issues related to cash, so the financial institutions are driving it from another perspective.
Do you think it’s safe to say that digital banking is no longer a luxury, but a necessity?
Absolutely. We see that the world is much more fragile than we thought. We are all forced to go online, work from home, access our financial instruments from home, shop online, get government funding and stimulus online without going anywhere, and so on. It is a necessity, it is definitely not a luxury and everybody will have to adapt to that. I just hope it becomes less painful for everybody to transition, and that people don’t lose out on their money through fraud.
We spoke to Carlene Jackson, CEO of Cloud9 Insight, about the transformative power of both technology and company culture…
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What led to you launching your business, Cloud9 Insight?
I started Cloud9 about 10 years ago, and it was an opportunity to support small businesses to deploy CRM in the cloud for the first time, because I saw a trend of more and more clients moving to the cloud. There’s an opportunity to help clients with making the most of their data in the SME space, plus they’re able to use Microsoft technology to get more insights – hence the name Cloud9 Insight. At the time, most of my competitors were still looking to sell on premises-software, but I saw a gap in the market.
Historically, what I’d seen with enterprise clients I had worked with, is that CRM projects had been at least a year long, and often you’d question whether the business had moved on since the definition stage of the project, and if it was still fit for purpose. I think projects these days need to be a lot more agile to support clients with business transformation; for me, working with cloud technology allows that agility.
There’s a quote on your website where you say you have a love of change and disruption – what does that mean to you, as a tech leader and expert?
I think it comes naturally to me. I’m moderately dyslexic, and some say that dyslexics are quite creative people. I find it hard to read anything without having a pen and paper in my hand, because I always got lots of ideas, and I think part of the reason that entrepreneurs have often been so successful as dyslexics is that we often think differently. If you look at tackling problems the same way they’ve always been tackled before, then you’ll probably come up with the same answers – but if you can address things differently, then maybe you might come up with a better opportunity.
When I started my business, I moved almost immediately to the Alps; I hadn’t worked in the Microsoft channel, and I had no preconceptions about what did a Microsoft partner selling CRM did. That meant my business model turned out very different to a lot of others. I also recruit a lot of young people into my business – which is why I’ve set up an apprenticeship programme, called Vantage Academy – and having them involved in the business has helped maintain that creative, disruptive model.
So is company culture very important to you?
Definitely. I used to work at IBM, and it was quite normal to travel around different offices around the country, visit your clients and just pop in and hot desk. Depending on which office you went to, some people were a bit more chatty and you got to hear a little bit more about what they’re doing. But what I noticed about my business, as it was growing, was it was becoming departmentalized and siloed in the same way that many of my clients complain about. I didn’t want that; I don’t want the salespeople not working with the support people, or projects people, and so on. There’s so much opportunity to learn when you have conversations with colleagues across different parts of the organisation, and I really wanted to make sure that we worked as a team.
I know you’re a big advocate for diversity in the workplace, and in the general realm of technology – what are some of the benefits diversity can bring?
First of all, organisations need to make sure that the demographics of who they employ reflects the demographics of who you’re selling to, because it’s difficult to understand them otherwise. Certainly in a B2C market, having representation across age groups in your workforce is really important. What I’ve found is that what really motivates the older generation is the ability to be a mentor and a leader to those that don’t yet have the experience. They want to give back.
As for younger people, they have energy, ambition and hunger to pass on to across the workplace, allowing great things to happen, and I think it increases the performance of my overall team. Diversity could also be gender; certainly in many sectors like tech and oil and gas, it is heavily biased towards males, and a lot of my staff do tell me that it’s nice to have a more balanced workplace.
I’m a lot more people centric than maybe a lot of my peers might be; I like to embrace the people and the value of people in businesses, both within my clients and within my own team. That’s really important to me.
You wrote a piece about how working from home is changing attitudes to work, specifically citing children gatecrashing video calls and how that represents how the life part of work-life balance can no longer just be hidden away – with technology supporting people really successfully to work from home, will things ever go back to ‘normal’?
I think there’s no going back to ‘normal’, for sure. The old way is not going to exist at all. There’s two types of businesses: those who are probably kidding themselves and just about surviving, and those who are probably a lot more agile and forward-thinking, who are going to look at the trends that have been happening, jump onto those trends and allow a lot more flexibility around people working from home.
The other great thing about this mobility of the workforce, is that maybe your team don’t even have to be in the vicinity of your office – maybe not even the vicinity of the UK. Maybe we can tap into where the best talent is.
How do you think female entrepreneurship can be encouraged in tech, and other STEM industries?
I love that question. One of the exciting things about me being able to set up an apprenticeship business is I’m definitely going to use my voice and position to be a great advocate for younger females to come into the tech sector. I think there might be a perception that you need to have technical skills, but having great leadership skills, having creative skills are also very important and greatly valued in the sector. It’s just trying to open the younger generation’s mind, especially for young females, as to the skills that they have inherently, in great abundance, how are they valued, and how can they use those skills to make a difference.
And for me, technology is a great enabler of change and making a difference. I’d like to see schools working more with younger people to help them feel confident about working with technology. When I hire people that are fresh out of school, I’m absolutely dismayed by how few skills they have in using technology. That crosses all genders, but it’s really sad to see the percentage of females attending degree courses that are highly attended by males. However, when you look overseas at places like Poland, they have a much greater balance, so I think we have a lot to learn about what is it that overseas countries are doing that we’re not. I suspect that starts at a young age in school, and if we could create more entrepreneurs, then our economy will be much more successful.
So it’s about encouraging STEM topics in schools, full stop, not just for girls but all genders, in order to fill that skills gap.
Yes, absolutely. I think that if there’s more integration between businesses and their involvement in schools, and that opportunities to learn entrepreneurship and problem-solving using technology exist, that might open their eyes.
deVere Group reports that enquiries for Vault, its global money app and card service, has experienced a jump in enquiries of 67% in Quarter 3.
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Growing demand for green, paperless banking and fears over post-Brexit rule changes have triggered a “monumental surge” in enquiries for money and challenger bank apps, reveals one of the world’s largest independent financial advisory and fintech organisations.
deVere Group reports that enquiries for Vault, its global money app and card service, has experienced a jump in enquiries of 67% in Quarter 3.
The cutting-edge app allows users to deposit, store, transfer and exchange money in most major currencies. The deVere Vault Prepaid Mastercard®️ can be used online, in-store and at any ATM location across the globe where Mastercard®️ is accepted.
Nigel Green, CEO and founder of deVere Group, which launched Vault in 2017, comments: “The monumental quarter-on-quarter surge for banking-style apps is, we believe, attributable to two main drivers.
“First, individuals and companies are increasingly embracing and expecting green, paperless banking.
“This is partly fuelled by the pressing need for us all to drastically reduce waste and better protect the environment – something the pandemic and issues such as raging wildfires has collectively focused minds on – but also because a paperless system is, typically, a more convenient and efficient one.
“Traditional banks have a long way to go to catch-up with tech-driven challenger banks and fintech [financial technology] firms, which are intrinsically much greener and are leading the charge to a paperless future.”
He continues: “The other major point driving engagement with e-money apps in Europe specifically is that many of the UK’s banks are set to abandon their customers, by closing their accounts and stopping use of their services across Europe within weeks unless they have a valid UK address.
“Under post-Brexit rules, it becomes illegal for UK banks to service customers living in the EU without applying for new banking licences.
“This will cause significant disruption for many individuals, families, businesses and other organisations.
“As such, people are flocking to firms that already operate under pan-European rules.”
The massive jump in enquiries, says Mr Green, underscores that “fintech is the future of finance” – not only for clients’ convenience and efficiency but also, in a large part, because it is more environmentally sustainable.
The deVere CEO concludes: “For Millennials and Gen Z clients especially there’s been a radical shift toward ‘less stuff, more impact’ in banking and financial services.
“And this is just the beginning of this global and far-reaching trend.”
Nell Walker talks to James Shanahan, CEO Revolut Singapore, regarding a new dawn of digital banking
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“By re-conceiving the infrastructure of a bank, the way that a bank delivers its services, you can take an order of magnitude off the cost and you can bring a level of experience to the customer that’s not hamstrung by old tech, by old thinking, by siloed approaches…” James Shanahan, CEO of Revolut Singapore
We spoke to Carlene Jackson, CEO of Cloud9 Insight, about the transformative power of both technology and company culture
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Interface Magazine hooks up with Carlene Jackson, CEO of Cloud9 Insight, who reveals the transformative power of both technology and company culture…
What led to you launching your business, Cloud9 Insight?
I started Cloud9 about 10 years ago, and it was an opportunity to support small businesses to deploy CRM in the cloud for the first time, because I saw a trend of more and more clients moving to the cloud. There’s an opportunity to help clients with making the most of their data in the SME space, plus they’re able to use Microsoft technology to get more insights – hence the name Cloud9 Insight. At the time, most of my competitors were still looking to sell on premises-software, but I saw a gap in the market.
Historically, what I’d seen with enterprise clients I had worked with, is that CRM projects had been at least a year long, and often you’d question whether the business had moved on since the definition stage of the project, and if it was still fit for purpose. I think projects these days need to be a lot more agile to support clients with business transformation; for me, working with cloud technology allows that agility.
There’s a quote on your website where you say you have a love of change and disruption – what does that mean to you, as a tech leader and expert?
I think it comes naturally to me. I’m moderately dyslexic, and some say that dyslexics are quite creative people. I find it hard to read anything without having a pen and paper in my hand, because I always got lots of ideas, and I think part of the reason that entrepreneurs have often been so successful as dyslexics is that we often think differently. If you look at tackling problems the same way they’ve always been tackled before, then you’ll probably come up with the same answers – but if you can address things differently, then maybe you might come up with a better opportunity.
When I started my business, I moved almost immediately to the Alps; I hadn’t worked in the Microsoft channel, and I had no preconceptions about what did a Microsoft partner selling CRM did. That meant my business model turned out very different to a lot of others. I also recruit a lot of young people into my business – which is why I’ve set up an apprenticeship programme, called Vantage Academy – and having them involved in the business has helped maintain that creative, disruptive model.
So, is company culture very important to you?
Definitely. I used to work at IBM, and it was quite normal to travel around different offices around the country, visit your clients and just pop in and hot desk. Depending on which office you went to, some people were a bit more chatty and you got to hear a little bit more about what they’re doing. But what I noticed about my business, as it was growing, was it was becoming departmentalized and siloed in the same way that many of my clients complain about. I didn’t want that; I don’t want the salespeople not working with the support people, or projects people, and so on. There’s so much opportunity to learn when you have conversations with colleagues across different parts of the organisation, and I really wanted to make sure that we worked as a team.
I know you’re a big advocate for diversity in the workplace, and in the general realm of technology – what are some of the benefits diversity can bring?
First of all, organisations need to make sure that the demographics of who they employ reflects the demographics of who you’re selling to, because it’s difficult to understand them otherwise. Certainly in a B2C market, having representation across age groups in your workforce is really important. What I’ve found is that what really motivates the older generation is the ability to be a mentor and a leader to those that don’t yet have the experience. They want to give back.
As for younger people, they have energy, ambition and hunger to pass on to across the workplace, allowing great things to happen, and I think it increases the performance of my overall team. Diversity could also be gender; certainly in many sectors like tech and oil and gas, it is heavily biased towards males, and a lot of my staff do tell me that it’s nice to have a more balanced workplace.
I’m a lot more people centric than maybe a lot of my peers might be; I like to embrace the people and the value of people in businesses, both within my clients and within my own team. That’s really important to me.
You wrote a piece about how working from home is changing attitudes to work, specifically citing children gatecrashing video calls and how that represents how the life part of work-life balance can no longer just be hidden away – with technology supporting people really successfully to work from home, will things ever go back to ‘normal’?
I think there’s no going back to ‘normal’, for sure. The old way is not going to exist at all. There’s two types of businesses: those who are probably kidding themselves and just about surviving, and those who are probably a lot more agile and forward-thinking, who are going to look at the trends that have been happening, jump onto those trends and allow a lot more flexibility around people working from home.
The other great thing about this mobility of the workforce, is that maybe your team don’t even have to be in the vicinity of your office – maybe not even the vicinity of the UK. Maybe we can tap into where the best talent is.
How do you think female entrepreneurship can be encouraged in tech, and other STEM industries?
I love that question. One of the exciting things about me being able to set up an apprenticeship business is I’m definitely going to use my voice and position to be a great advocate for younger females to come into the tech sector. I think there might be a perception that you need to have technical skills, but having great leadership skills, having creative skills are also very important and greatly valued in the sector. It’s just trying to open the younger generation’s mind, especially for young females, as to the skills that they have inherently, in great abundance, how are they valued, and how can they use those skills to make a difference.
And for me, technology is a great enabler of change and making a difference. I’d like to see schools working more with younger people to help them feel confident about working with technology. When I hire people that are fresh out of school, I’m absolutely dismayed by how few skills they have in using technology. That crosses all genders, but it’s really sad to see the percentage of females attending degree courses that are highly attended by males. However, when you look overseas at places like Poland, they have a much greater balance, so I think we have a lot to learn about what is it that overseas countries are doing that we’re not. I suspect that starts at a young age in school, and if we could create more entrepreneurs, then our economy will be much more successful.
So it’s about encouraging STEM topics in schools, full stop, not just for girls but all genders, in order to fill that skills gap.
Yes, absolutely. I think that if there’s more integration between businesses and their involvement in schools, and that opportunities to learn entrepreneurship and problem-solving using technology exist, that might open their eyes.
Sarah Doherty, Product Marketing Manager at iland discusses how a cloud-based infrastructure can accelerate IT initiatives.
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There’s no doubt about it, we are living in a cloud enhanced world. No matter what is happening in life, whether it’s uploading pictures of the family, keeping track of friends on social media, or working remotely, the fact remains that the cloud is a part of our everyday lives in one way or another.
So why are organisations so hesitant to adopt a cloud infrastructure? From speaking with customers, the reason extends across infrastructure, business as well as, let’s face it, an overall new way of thinking about what is the best way to mitigate risk.
When we talk to business leaders, the idea of moving from a CAPEX model to an OPEX model is appealing for pretty much everything but IT. They still look at IT assets and think about budget cycles and performance/capacity per the pound or dollar. This can put them into situations where they are purchasing hardware on three to five-year cycles, subsequently discovering after two years that the hardware they have invested in isn’t doing what it needs to do. However, at that point, the business is committed.
They may be locked into a certain vendor or platform and the pain of moving seems overwhelming or they may have concerns about moving to the cloud in general. In a nutshell, this approach is not compatible with the flexibility and scalability that many businesses need in their toolkit.
The tangible business benefits of using a cloud-based infrastructure have been heavily publicised of late, with the onset of COVID-19 necessitating a quick and efficient move to the cloud, in order to keep businesses moving. However, implementing a cloud strategy to future-proof an organisation can, not only have top-line operational benefits such as data security, business continuity, resilience, scalability, and accessibility – it can facilitate wider digital transformation strategies.
This will prove crucial to maximising business efficiency and time-to-market of these initiatives, in the event of another worldwide event where physical access to a building is not possible. After all, an organisation’s end users have become accustomed to receiving a faultless service – even during a global pandemic – and would have expected businesses to have learnt their lessons from COVID-19.
Organisations wanting to implement a range of IT initiatives have unarguably accelerated cloud adoption. However, when choosing a cloud partner, they normally express the following concerns around adaptability to the cloud, which cloud providers need to tackle head-on.
Security and Compliance
While it may not be the first thing that springs to mind for IT professionals looking to quickly enact digital transformation strategies, such as building applications that will streamline internal business processes, security practices must adapt as data moves to the cloud. While assets are normally well-locked down, it is easy to accidentally create vulnerabilities in the cloud since customers are responsible for setting many security controls around their apps and data.
All clouds have a different set of best practices and design principles. Therefore, knowing those practices up-front will help cloud admins avoid headaches later. Working with the right cloud partner to plan and then execute a cloud strategy will not only eliminate headaches now and later but will also help to grow the business for the future.
It goes without saying that vulnerabilities must also be addressed as soon as possible. Cybercriminals are currently stepping up their attacks to take advantage of remote employees. Phishing attacks are at an all-time high on small and large businesses, as well as public resources like hospitals and healthcare providers. Therefore, businesses must assign responsibility to an individual or group of individuals to look after the organisation’s data from the onset, especially during the migration period.
There is no time like the present to reinforce an organisation’s IT security and compliance guidelines, many of which include the relevance of when employees travel or occasionally work from home. This includes a refresher on password policies and how to identify and report phishing attempts. It’s important to help employees with securing their home networks, and all the other policies and guidelines they would typically follow at work to protect the company and customer data. This might also be an excellent time to train employees on document and data retention best practices.
Cloud Expertise and Management
Most IT teams are running at full throttle as it is, and the idea of learning entirely new jobs, alongside current tasks, can be daunting. Furthermore, IT managers may be wondering how to firstly move their teams to the cloud, and subsequently get them up to speed quickly and manage projects in the long run, minimising business disruption as much as possible.
A good first step is to implement a robust cloud migration strategy. This will help communicate a clear vision and change management plans to all employees within the organisation, including IT teams at the coalface, demonstrating how the move to the cloud will really help the business, and prove ultimately beneficial in the long-run. For example, key drivers are the need for greater availability, the desire to move from CAPEX to OPEX and the need for greater scalability as the company grows.
Furthermore, the progression from traditional server-based infrastructure to virtualisation and then to cloud involves several mental leaps. The cloud requires an adjustment of mindset and an ability to accept ways of doing things differently. However, this is the only efficient way to take wider business and IT strategies forward. Organisations should start their move with non-mission-critical applications, which are typically the easiest to migrate. The transition of refactoring some applications to function as cloud-native or distributed applications can take more time.
It goes without saying that organisations choosing a managed service provider to manage their cloud migration and ongoing support should lean on their partner as much as possible, especially in the first few months, to help teams get up to speed with new processes and workflows.
It’s all about short term pain for long-term gain.
Cost Control
Understanding all the factors that contribute to billing before an organisation makes the move to the cloud is a must, since cost management changes can lead to problems if they are not understood.
Cloud services are generally billed once a month or follow a pay-as-you-go pricing model. However, users must factor in hidden fees, such as data transfer costs, and additional support and training. These budget surprises can pose a challenge if not addressed proactively.
Organisations should choose the cloud partner that doesn’t spring any surprising extra fees; the best providers should have simple, easy-to-understand invoicing portals and support, where businesses have complete visibility of all costs in one place. This is increasingly crucial as businesses scale their cloud offering up and down – sometimes on a month-by-month basis – with differing costs to reflect this. When scaling in such a way, organisations need to be made aware of how these changes will be billed – i.e. immediately or on monthly terms. Not addressing the finer points of billing can unnerve an organisation who are not familiar with cloud models, or a SaaS approach.
It is important to look past the challenges and focus on the true advantages. The cloud provides a great opportunity to modernise IT infrastructure and gain operational efficiency through cloud-native design practices.
All clouds have a different set of best practices and design principles. Therefore, knowing those practices up-front will help cloud admins avoid headaches later. Working with the right cloud partner to plan and then execute cloud strategies will not only eliminate headaches now and later but will also help businesses to grow in the future through planned digital transformation initiatives that can be executed without the constraints of legacy hardware.
Gobeyond Partners and Webhelp surveyed 500 respondents at director level and above across a range of industries about the impact of COVID-19 on their businesses.
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New research from Gobeyond Partners, the consulting firm focused on customer journey transformation, and Webhelp, Europe’s leading provider of outsourced customer engagement services, has today revealed that over 60% of business leaders are re-evaluating how much they will be investing in change and transformation since COVID-19, yet only a third of survey respondents are committing to a higher spend in this area.
Gobeyond Partners and Webhelp surveyed 500 respondents at director level and above across a range of industries about the impact of COVID-19 on their businesses. By combining Webhelp’s expertise in customer engagement with Gobeyond Partners’ customer journey design and transformation capabilities, the two organisations were able to evaluate the impact of COVID-19 across a number of key areas and offer recommendations to businesses as they start to plan towards a post pandemic world. When it comes to the issue of transformation, the research highlights the value of an intelligent use of rightsourcing* which will be crucial for businesses to establish the most cost effective and relevant solutions to support the flexibility and speed needed during this transition period.
Change and transformation are two of a number of data points highlighted in the joint research and accompanying report by Gobeyond Partners and Webhelp which explores how consumers arenow demanding more human experiences, even in digital environments, and why organisations must balance agility and adaptability against a clear focus on maximising value from investment in transformation.
Mark Palmer, CEO of Gobeyond Partners comments on the findings: “As the urgency for change and transformation intensifies in our new reality, it raises some pivotal questions. How different willservice look and feel in the future? How will businesses and their operations need to adapt? And how can employers engage and support their colleagues to deliver on new customer promises? The engineering of an authentic human experience in the digital world will need a delicate balance, and companies will need to work hard to create service transformation that satisfies both these needs. This may expose a lack of capability and flexibility inherent in many organisations, due to a lack of investment. For brands to survive, leaders can no longer pay lip service to digital transformation and digital must be fully integrated into the overall operating model.”
Other key findings from the joint research include:
70% of businesses have seen a direct impact to their bottom line as a result of COVID-19, with more than half being negatively affected.
These financial impacts are expected to last, with more than 80% of respondents believing they will be financially impacted for six months or more and 50% expecting their finances to be affected for more than a year.
Companies that have been affected negatively by COVID-19 are twice as likely to expect cuts to their transformation budgets after the pandemic has subsided.
Craig Gibson, Chief Growth Officer at Webhelp Group continues: “Overall whilst budgets may reduce, spend on individual change and transformation programmes should not be reduced commensurately. Instead, the entire change portfolio should be reviewed and reprioritised. Now is the time to focus on and invest in a critical, clear and concise set of priorities, which the whole organisation can communicate and contribute to. This will ensure that the most critical agenda items will accelerate, without depleting vital cash reserves.”
One of the world’s largest independent financial advisory and tech wealth organizations is to launch a first-of–its-kind onboarding verification app amid “soaring global demand” for fintech solutions.
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deVere Group’s pioneering Ident Me app provides a secure identity verification system – as an alternative to traditional customer onboarding – and a notary services function when required, which is a first for the international financial services and fintech sector.
Of the launch of this new service, the founder and CEO of deVere Group, Nigel Green, comments: “We’re in an exciting new world. In recent months, the future has happened faster. There have been major shifts in the way we live, work, and manage our finances.
“Much of this is being driven by digital technologies, and our financial lives are no exception.
“There’s soaring global demand for fintech [financial technology] and it’s clear it is going to become an increasingly dominant part of our lives moving forward.
“Indeed, fintech is already the ‘new normal’ as we increasingly insist on immediate, on-the-go, 24/7 access to, use and management of our money. We demand personalised, on-demand services and lower costs.”
He continues: “Against this backdrop of growing demand, we decided that we needed to make the set-up process of onboarding to use our fintech apps as quick, easy and secure as possible.
“Ident Me is a hassle-free, simple and safe way for clients to provide identity verification for themselves via a KYC (Know Your Client) form.”
KYC is a financial services standard.
The Ident Me app consists of an easy three-step process.
First, proof of identity. This is done by taking pictures of the front and back of your ID card or passport.
Second, the capture of documents. This is undertaken by taking a picture of a document with your address on it, for example, a utility bill or rental agreement.
Third, the liveness test. A live selfie you take will get verified against your ID/Passport photo.
Once this has been approved, clients will soon be able to have access to and enjoy the benefits of deVere’s suite of fintech apps.
deVere is one of the very few financial advisory organisations that has been actively and consistently pushing into fintech and is now widely regarded as one of the leaders in the sector.
Currently, the organisation’s apps include deVere Vault, a global e-money currency app and multi-currency prepaid card; deVere Crypto, a cryptocurrency app to store, transfer and exchange major cryptocurrencies, including Bitcoin; deVere Core, an app that allows clients to monitor their investments in real-time, on-the-go, keeping them informed with news and events that impact investor returns; and deVere Catalyst, a low-cost investment and savings app that offers best-in-class globally diversified funds.
The deVere CEO concludes: “We believe that everyone should have access to and reap the benefits of cutting-edge fintech.
“Ident Me, the first-of–its-kind onboarding verification app, helps further democratise financial technology.
“Fintech is meeting growing demand for on-the-go service, it is speeding up the advance of global financial inclusion which helps social advancement around the world, plus costs are lowered and the client experience is enhanced.”
Digital transformation is laid bare with an insightful trilogy of podcasts from Dr. Paul J. Bailo…
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“I don’t see how any organisation in this current world could survive without a true digital leadership model.” Dr Paul J. Bailo, Executive – Digital Strategy, Data & Innovation
Dr Paul J. Bailo, a digital thought leader par excellence, takes us through the importance of leadership to a successful digital transformation programme
Over half [55%] of SMEs believe that their competitors have a better digital presence than they do, according to new research by leading creative agency, Sparkloop.
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The research, which questioned 500 decision makers from SMEs across the UK on how much time, budget and resource they have invested into their digital brand presence, also revealed that despite believing their competitors had a better brand presence, 45% of respondents had not reviewed the performance of their website in over 18 months.
In addition, 25% of respondents advised that they rarely, or only annually, make changes to improve the performance of their website to engage potential customers.
When questioned on the level of investment SMEs made into their digital brand, 46.3% advised they invested under £2,000, 53.7% invested £2,500 plus and 10.9% invested £10,000 plus.
However, a quarter [25.8%] of SMEs haven’t invested in their website and wider digital brand presence in over 2 years.
Other key take outs from the research include:
Only 31% of SMEs believe that they have a stronger digital brand presence than their competitors.
44.3% of SMEs have developed their website using ‘off the shelf’ platforms like Wix, Square Space or WordPress, with 31.6% opting for creative and technical input from an external agency.
A staggering 62.3% of SMEs have not taken advantage of tech features, like chatbots, blogs and feedback to increase stakeholder engagement or improve the performance of their website.
This new research comes as the majority of UK SMEs are forced to review and pivot their existing growth strategy following the impact of the current situation.
Gayle Carpenter, Creative Director of Sparkloop, confirmed: “This latest research is incredibly telling and effectively demonstrates that SMEs UK wide do not place enough value into both creating and maintaining a strong brand and digital presence, which could be damaging to their business.
Currently, SMEs are facing the significant challenge of survival following recent events. Those with the strongest brands, an engaging website and integrated digital presence will instil confidence and drive growth, both during and following this time of uncertainty.
For business owners looking to use this time to disrupt and develop, it doesn’t necessarily mean investing tens of thousands into your website and wider digital presence, but it does mean evaluating your brand by ensuring it represents your business and attracts the right target audiences. This is consistently overlooked by the majority of SMEs, as demonstrated by the research, but could be fundamental to future growth and success as we return to some form of business as usual.”
Established in 2004, Sparkloop has successfully delivered bespoke design and communication strategies for brands and businesses across the UK and overseas, with long-standing clients including Red Bull and HomeServe.
Founded by design and branding specialist, Gayle Carpenter, the firm is headquartered in Camden, London, with a South West regional office based in Bath, Somerset.
Since the outbreak of COVID-19, the agency has launched its Virtual ‘Spark-Up Sessions’ initiative, designed to help businesses quickly solve problems and identify achievable outcomes when establishing a clear and effective digital brand presence.
To find out more about this latest research, download a copy of Sparkloop’s SME Digital Brand Presence Report 2020 at www.sparkloop.com.
Chief Information Officer Philip Clayson is putting digital agility at the heart of the company’s strategic transformation plans for the future, following the recent acquisition of SSE Energy Services by OVO Energy.
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OVO Energy was founded in 2009 and redesigned the energy experience to be fair, effortless, green and simple for all customers. Following the acquisition of SSE Energy Services, today OVO Energy and its Retail partners serve nearly 5 million customers, all striving to deliver more affordable clean energy for everyone.
SSE Energy Services has been supplying power to millions of UK homes for decades. The technology infrastructure within the company had been built and maintained with dependability and assurance at its core.
Clayson is now empowering the 1,000 strong IT team to adopt a learn-fast, fail-fast culture and mindset, while at the same time maintaining the performance and quality of their outputs. Key to achieving this has been extending the company’s partnership with Expleo. Through the adoption of Expleo’ automated testing solutions, SSE Energy Services can now bring new products to market faster, without sacrificing quality.
With customers’ digital engagement increasing and the introduction of smart metering within homes, SSE Energy Services knew it had to focus on digital agility and innovative product offerings.
In order to accelerate this direction, SSE Energy Services appointed Philip Clayson as CIO in August 2019, bringing experience of driving fast-paced digital transformation for companies including News Corporation, BT and TalkTalk.
Clayson said: “With increasing numbers of new digital enabled products to deliver to market, at an accelerated pace, we needed to leverage technology and expertise to help us drive up our competitive advantage and increase our agility.”
SSE Energy Services formed a strategic partnership with Expleo, a leading technology and engineering consultancy. As the two companies previously worked closely together, SSE Energy Services had trust in Expleo’s expertise to help with a key part of the programme. This would help SSE Energy Services maintain performance and quality, but crucially boost agility, shortening product and system releases from several weeks to just a couple of days, by providing a pioneering approach to automation.
Automation first
Expleo was in an excellent position to advise the company on how to best move to a framework that automated the entire testing lifecycle for all of its complex and integrated retail systems.
Julie Heneghan, Client Director at Expleo, said: “Many companies use automation on low-risk, fringe applications and as a result deliver limited value to their organisation. However, our in-depth understanding of SSE Energy Services’ systems meant it was clear to us that an automation-first approach would deliver the biggest possible impact in terms of value.”
To help achieve the transformation, the relationship moved from a standard services delivery model, to a strategic and innovation-led partnership, with SSE Energy Services entrusting Expleo to deliver best-in-class testing and assurance that would reduce the cost and frequency of system defects.
Expleo helps SSE Energy Services to enable mass testing of the software deployed to customers for smart metering. This includes testing the smart meter itself before it’s installed into customers’ homes, to testing the app on the in-home display which helps customers see how much energy they are using.
“Now, instead of a traditional services supplier model, SSE Energy Services works in partnership with us to map out the future IT change roadmap safely in the knowledge that Expleo automatically delivers the quality assurance they need without any effort on their part.” says Heneghan.
Innovation to the fore
To best deliver the benefits of automation and other improvement initiatives in the future, SSE Energy Services and Expleo have created a joint innovation board with dedicated funds to formalise the creation of new ideas and concepts and ultimately put them into practice.
Combining the best of technology and engineering, Expleo is a digital partner for the future for energy and electric vehicle companies. As energy and mobility markets converge, Expleo provides clients with end-to-end expertise in the design, development and implementation of a seamless customer experience. Its track record of delivery in smart energy billing solutions, battery charging technology, electric vehicles and the wider smart grid puts it in a unique position to help its clients innovate for the future.
“Innovation is at the heart of what we do at Expleo,” says Stephen Magennis, Managing Director of Expleo’ s Technology business in the UK. “But for us, it’s about making incremental changes, on a continuous basis, to drive bigger overall gain. This also allows us to monitor and measure each innovation and work out what it’s actually achieved for our client’s business, so we can take a swift decision on whether to keep it or move onto something else that could potentially have even greater impact.”
SSE Energy Services has continuous insight into the progress of testing and innovation through Expleo’s Quality Intelligence Platform (QIP), part of its innovative AI and analytics offering. It monitors execution and results, demonstrating release on release productivity and efficiency gains by aggregating the data into a dashboard, giving a real-time and predictive view of progress, quality and velocity.
Tom Little, SSE Energy Services IT Delivery Manager, who played a leading role in the technical transformation, says: ‘’We want to get our solutions to market quickly, but we can’t sacrifice quality. There are critical journeys where customers rely on us to deliver every single day. Our automation-first approach and partnership with Expleo has helped us to deliver quality to our customers.”
Exceeding expectations
In applying the new automation tooling, SSE Energy Services is already seeing compounded benefits. These include smoke-testing new environments in near-real-time and a reduction in manual test effort of up to 65 per cent. “This enables the SSE Energy Services technology team previously involved in this area to have more time to focus on new initiatives for the company to accelerate the pace of change”, says Clayson.
The direct result for SSE Energy Services is that new customer offerings can be pushed through faster – helping it set the pace in the market. In fact, the speed of output is now 2-3 days, rather than 2-3 weeks or months with an overall cost saving of 60 per cent.
Technology + people + culture = pace
Having the right technological tools is a vital part of any digital transformation. But in order for the investment to be a success, there needed to be an internal shift within SSE Energy Services toward a highly engaged, learn-fast fail-fast culture and mindset.
To this end, SSE Energy Services invested in upskilling staff, including introducing formal accreditation in delivery management techniques such as Agile as well as technological disciplines to increase agility from the bottom up. Expleo aided this programme by providing Scrum Master training to key SSE Energy Services team members, including project managers and product owners.
Industry leading digital transformation for growth
With the acceleration of digital and agility at SSE Energy Services, it is now much more nimble when it comes to dealing with change. This proved crucial with the unexpected arrival of Covid-19. The fact that both internal and external partner teams were able to quickly pivot to operating virtually, with no impact on services, demonstrates that its transformational journey has brought additional benefit to SSE Energy Services and ultimately its customers.
“Our digital transformation means that IT is now an engine for growth and competitive advantage. It enables SSE Energy Services to swiftly respond to change. The team and our partners including Expleo should be proud of being part of what must be the biggest digital transformation the sector has seen due to Covid-19.” says Clayson.
The company’s successful digital transformation, underpinned by its pioneering adoption of automation in partnership with Expleo, means that it is continuing to set the pace of change in the industry.
Dan Jelfs Senior Vice President of Global Sales at Mobica, discusses how we are on the cusp of a connected digital revolution, making technology more pervasive and a key driver of strategic change to businesses and models
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Tell us about your career journey and your experience
I’ve worked in the global technology industry for about 25 years now. I landed in it so by accident, more than design, straight out of university. I’m not an engineer by trade. I went through Business School at university and my first role was at AT&T. I worked a lot in mobile communications and wireless networking in the 1990s. What I found very fascinating, and enjoyed was the way that technology changed people’s lives, usually in a positive way. I also liked the globallness of the industry and the opportunity to work with so many bright minds with different perspectives from around the world. I think fairly early on in my career, I realised I had a passion for innovation and that the large corporate culture that I was in wasn’t going to satisfy that.
I made quite a radical decision around the early noughties to leave a large corporate and move to a venture capital funded startup. It was really looking at the evolving mobile data services market, and what sort of content services could generate viable business models. I really spun through a number of other startup type businesses during the noughties and then joined a software services business in 2009.
I’ve really been doing software consultants and software services now for about 10 years. The reason I made that change is because the mobile devices world which I’ve been very focused on up until then, was to open source with the launch of operating systems like Google’s Android, most prominently in the battery. At a structural change within the mobile communications market that would drive demand for software services within that, I thought it’d be a very interesting journey to go on.
I’ve also got a huge passion for British technology companies. I think there’s not enough British technology success stories within the global technology market. So I joined Mobica about 18 months ago as a vehicle to try and do my bit to change that.
How does that make you the right person to bring about change?
What we move into now is a world of everything being connected and data science and artificial intelligence applications off the back of those things being connected. So I have that core experience around connected software, and then I’m able to help C-levels in companies in other industries that aren’t familiar with connectedness and digital, and bring all that experience to bear to help them on their transformation.
How has the technology conversation changed?
10-15 years ago, I thought the technology industry was far more discrete and defined. And in fact, some industries and many companies really didn’t need to dip any more than their toe into it. I think we’re on the cusp of a revolution now where everything’s connected, and through that the things that are connected we’ll be able to acquire artificial intelligence over time.
I just don’t think there’s any industry or there’s any company within an industry that has been great at embracing that now. I think that’s the fundamental difference for me. There were the technology industries that were more disruptive and defined. Now it’s totally pervasive and it’s a driver of strategic change to businesses and business models and industries. You just, you can’t avoid it, wherever you’re working.
How has the traditional customer changed?
There are more customers that are, as a legacy, not so technically proficient and need support to really understand the potential for strategic change the technology is bringing and how to implement that within their business.
Where does Mobica fit into this technology conversation?
We support customers in two areas, either modernization or transformation in relation to enabling technologies.
Modernization is probably not quite as strategic in context of the transformation piece. Now, a good example would be cloud applications which are quite a trend. In recent years, we’re really moving apps to the cloud. We help companies deal with the technical challenges that this new type of technology brings to the transformation. Part of the work we do is where there’s a combination of new technology that facilitates a fundamental redesign of the business model, and potentially of the structure of the company too. We help them think about the way to design that transformational change/
How do you define transformation?
In the transformation paradigm when you talk about strategic design, you look at what your brand might be in a digital environment or what the business model might be. Often the scenario is that companies are moving from tech non/digital to digital for revenue generation. That can fundamentally change the way they address the customers, the way the brand reaches out. So in many ways, the starting point for me is strategic design and non technical. The outcome of a strategic design process, though, becomes a very technical software engineering implementation.
What are the challenges?
Sometimes I can end up in a conversation and maybe the executives of the company aren’t quite sure, from a business case point of view, when to pull the trigger on a digital transformation… There’s an internal discussion that happens; maybe it’s in two quarters’. 12 months’ two years’ time. I think you could be kind of wrong. If you look at the end destination, you may as well just start into digital straightaway, don’t delay. But I think some internal wrestling around understanding the return on investment is sometimes apparent.
I also think about the cultural change within the technology environment, or the engineering environment of the company. I’m seeing the needs change from very established businesses whose technology hasn’t changed much over a couple of decades to suddenly needing speed, digital and agile. Culturally, from a software engineering point of view, like a Silicon Valley startup, that’s not easy in that it’s quite a barrier to affect change.
How do you go about changing mindsets and enabling a cultural change within a business?
We bring a lot of our learnings from the way we work with companies around the world, anonymized into the discussion to help realise that even though they don’t think they’re on the same page, they’re on a cliff edge. The future is digital, we were able to see some success stories of some really positive digital transformations as well, that you could point to that are often powerful in terms of changing the minds of executives as well.
How important is it to look outside your own industry?
It’s fundamental and there are enough of those kinds of stories in different industries to use already. It’s very helpful within that discussion to point to some very successful digital innovation stories.
It’s important to also look at where things haven’t worked to look at the failures and look at the mishaps as well, as much as you look at these case studies in the success stories.
Is tech replacing people?
Effecting that cultural change with the state in relation to the status quo is just too difficult, will take too long and costs too much. What we need to do is sort of start over and I’ve seen some companies create what are essentially new legal entities and new ventures, and build from the ground up. I’ve seen other companies create digital innovation and disruption units alongside their existing organisational structure and start to see that digital DNA move into the company, but from within what’s exists today.
I’ve also seen others who strategically partner with software services firms to bring that digital agile culture into the mix of their overall software, software engineering and technology capability to drive and effect change in the established culture and established engineering.
How has the supplier relationship changed?
We’re in a process ourselves of moving from a tactical partner to a strategic partner increasingly, and our strategic partners. The different dimension is the buyer is two or three levels higher in the organisation and therefore, either in or close to the C-suite, that they’re looking for long term collaboration and the souls of strategic challenge to their business.
What makes Mobica a partner of choice?
Within our engineering team, we create the space in terms of time invested into internal innovation projects that are really aligned around strategic technology bets that we make in regards to what’s going to be important in the future. If we do that correctly, that keeps us ahead of the curve.
Technology buzzwords?
I talked about strategic design earlier. It’s really that design and planning thing it’s really looking at, where are you and where are you trying to get to and what’s important on that journey. There’s always careful thought and planning before you scale out engineering projects.
Marketplaces change so much that it’s not going to be a straight line, so how do you account for things that aren’t going to go according to plan?
We propose an agile development process and you’re constantly iterating and constantly changing. Whilst you know the general direction of where you want to get to but you don’t necessarily take a stroll along together. So it allows for bends in the road and iterations to design as we go through.
Talk to me about the dynamic between incumbents and start-up companies?
I think enough large established companies have suffered and gone by the wayside. They’ve been cannibalised by a startup coming from nowhere. For everyone to be aware of these larger organisations, they need to create an innovation strategy of their own.
Ideally, you know, if anyone’s going to cannibalise their existing business models, they’d prefer that it was them. So I think there’s a lot more effort and thought put into that and less destruction caused by startups. It doesn’t stop the startups being acquired by some of these companies to complement their digital transformations.
What advice would you give in order to succeed?
Don’t underestimate the value of strategic design before you head out on the engineering journey that follows good design.
Welcome to another packed issue of Interface Magazine!
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This month’s cover exclusive features Dan Jelfs, Senior Vice President of global sales at Mobica, who discusses how we are on the cusp of a connected digital revolution, making technology more pervasive and a key driver of strategic change to businesses and models.
“In the transformation paradigm when you talk about strategic design, you look at what your brand might be in a digital environment or what the business model might,” he tells us. “Often the scenario is that companies are moving from tech non/digital to digital for revenue generation. That can fundamentally change the way they address the customers, the way the brand reaches out. So, in many ways, the starting point for me is strategic design and non-technical…”
“Sometimes I can end up in a conversation where maybe the executives of the company aren’t quite sure, from a business case point of view, when to pull the trigger on a digital transformation… But often, when you look at the end destination, you may as well just start into digital straightaway, don’t delay.”
Elsewhere, SSE Energy Services reveals how its pioneering adoption of automation is underpinning an industry-leading transformation that is setting the pace of change in the energy sector. Plus, we have exclusive insights from business leaders at Union Bank, Radius Networks, DeKalb County and Sij Group. And we outline 5 industries predicted for growth post-Covid…
Paul Bailo, PhD, MBA with a clinical degree in social work is a graduate professor at Columbia University and an executive working on combining digital transformation, digital strategy and data analytics into one powerful solution.
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How would you describe your work?
I like to say 90% of my job is saying no in a very nice way (ha ha) so organisations really get to the point very quickly and understand new models in this digital world. Because what has worked in the past, will not necessarily work in the future. It is a completely different paradigm with organisations in the financial world. And in the insurance world and in the government, and in fintech and banking. They all need to actually start thinking differently. My world is really like a Venn diagram, where I have my academic Columbia University educational world, where I’m pushing really hard trying to build a future data scientist. And my executive world, where I’m trying to educate executives and help them with their corporations and companies to be more effective.
How would you describe a digital transformation?
I think we first have to define digital for a company. And I think digital really is that heart of why a company exists, and what really matters. And it’s really not about the company, but it’s how you perceive the client you’re working for. And how do you make that customer experience greater in a very transformational stage. Looking at that customer journey, and how you make the person’s life easier, simpler and better. Because I think when you start talking about digital and digital transformation, I think everyone has a different definition of it. Neither are they right, neither are they wrong. I think it really comes down to the customer, and how you use digital. And when I say digital, I mean digital data, innovation, transformation, pushing forward in order to help organisations make unbelievable customer experiences, which then makes a happy customer, which then allows the organisation to build a loyalty bond with that customer and then drive revenue. My fundamental belief is, feelings drive actions, actions drive productivity, productivity will drive revenue. And if you don’t have a happy customer then the whole system falls apart. How do you look at data digital transformation to make your customers’ lives a hundred times better?
The customer journey has become a massive buzzword in recent years and certainly influences many digital transformations…
Oh yeah. Andrew, you make a really good point. It’s all about the competition, but it’s all about the new people, your new customers. I mean you have millennials, and young people and they are transforming every industry on earth. They’re not putting up with things that maybe you and I would put up with. The minute they don’t like something, they’re gone. One extra click, one extra step. And also, if the companies aren’t loyal in making their lives easier for them, they’re gone. When you look at the data, millennials hate banks and insurance companies. It’s terrible. They would rather bank at Google, Yahoo or Facebook to have a greater allegiance to the tech companies than the traditional banking corporations. When you look at the data, these large monolithic companies aren’t really engaging in the digital arena with these digital natives. Their customer base is dying off rapidly. And the only way you’re really going to get them back is to really understand that customer and how you make their lives easier.
So legacy institutions need to start being less risk averse?
Yeah, definitely. You’re better off making a wrong move than no move. Right? You’re going to have to start thinking about it. I think you really have to start thinking about this idea of a digital leader. And the first idea is that a digital leader is a human being. And how do you make someone’s life easier and better? But now I think you have to make sure these organisations have a culture that’s really supporting this idea of digital transformation throughout the enterprise. Sometimes you may have the will and you want to have the skill. So if you have the will you could always buy the skill or get the skill, to understand the version of a digital leader and what is it going to take to mastermind this cultural transformation. Or you have the skill, and don’t have the will. And that’s what I see a lot of, where people just don’t want to do this. Because the world is tough and most people don’t want to change. And we’re talking about a fundamental paradigm shift in the thinking of how most organisations behave. If you take banks, imagine you grew up in a bank, you spent 20 years at a bank and now you’re saying why are you even building a branch? This morning, I went to the bank four times today, I never even left my office. I don’t think this idea of a bank and branches exists today. You don’t need branches to do what you need to do. And these are fundamental paradigm shifts that have to occur in the world. And millennials, mobile technology, 5G… I mean the world is shifting drastically. And the underlying business models don’t hold true anymore. The things my parents told me to do, or not do, are exactly the opposite of what people do today. My mom would say, “Hey Paul, don’t go into a stranger’s car.” And what do we do now, we use Uber and Lyft and we go into strangers’ cars. “Don’t stay at a strangers house.” What do we do now, you have Air B&B. The models have shifted drastically.
How important is the customer journey and trust?
Make it easy for the customer, and then behave in a proper manner, and then actually build the trust and be transparent. Look, you don’t have to be all things to all customers. And if you can’t do what you want them to do, the fair answer is we don’t do that. It’s just simple, just don’t do it. If you’re looking for an electrician and you’re a plumber, don’t try to be an electrician. You’re just going to get yourself electrocuted. It doesn’t pay.
Talk to me a little about your ideal digital leader…
When you start thinking about digital transformation, it’s about having the right digital leader, and having a digital leader who’s actually human. You have to understand human behaviour and embrace that, and then make a bridge between human behaviour and the digital world, that’s the first thing. The digital leader has to be this visionary. You can’t just have these ideas of where you want an organisation to be, you want them to be able to share. And grab people in the organisation to share this vision, and this belief and get people excited about it. To actually feel and taste this vision of digital. And then you have to walk the talk. You can’t just be saying, “Here’s the vision, let’s go do this.” You have to show people, and you have to define it for the organisations. And what does it really mean for people in the organisation to be a digital organisation. American Express had this model and behaviours of what they wanted for an executive and this was transcended down to every person. This is what it looks like, this is the behaviour. This is what the digital leader has to do in order to transform and get a company ready for digital transformation. And when we talk about transformation, it’s really rooted in this idea of change.
And change is really one of the hardest things in the world do…
But the funny this about digital transformation/change, is we change every minute, every day. Change is a constant in our lives, but we sort of deflect it, and we’re afraid of it, as opposed to embracing it. Obviously within leadership you have to be a change agent and understand that this is not going to be easy, and don’t sugarcoat it. You have to be with the people, understand the people and hear them out. Make sure you have their heart, minds, and souls, and then build that plan, build that vision. Share in that. Talk the talk, walk the talk. And then really inspire people and make sure that you’re holding hands and walking forward together in the dark. The simple task of harnessing this brain power, and then winding people up and letting them go is so important. Why are you hiring really good people if you’re not going to really trust them and let them do their thing.
Leadership is so important isn’t it?
Yeah, you have to be bold and get a person who sees the company differently and who has the experience as a digital leader and understands human behaviour, innovation, technology and the customer experience. And that could lead and change the organization. You have to be a change agent. If you’ve been in the company 20 years, you’re going to think a certain way. And that’s the same way you always have. You have to radically change the way you’re thinking, and deal with the fact that this will not be easy. And be clear in terms of what you want. The DNA of digital has to be part of everyone’s mindset in order to make this work. Digital’s in the corner right there. And then you have technology in the corner over there. And then you have marketing over there. They all have to be digital. They all have to be under one roof and playing the same game. And having the right objectives is integral and identifying what those objectives are. Is it the enhancement of the customer experience? Is it digital transformation business processes? Is it the simplification of a service management system? Is it the optimisation of infrastructure? Is it the insights and the analytics that will drive competitive advantage? You really have to focus in on what you’re trying to do. You can’t just paint with a broad brush; you have to have these identifiable objectives attached to your long-term vision in order to transform these organisations. The elephant in the room here, is of course, the technology… You really want to make sure you have the right technology in order to enable this transformation. And what I’ve see a lot of times, is that people are selecting the wrong technology stack. I think a lot of it has to do with the fear of change and the fear of failing. Failure is critical piece that you have to embrace. Because you will fail, you’re going to have problems, this stuff’s not easy. The quicker you can embrace this, the quicker you can get over it, and move the organisation forward.
Interface Magazine talks to Vladimir Arshinov, IT Director at steel producer SIJ Group regarding the company’s massive digital transformation
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Going into 2017, SIJ Group (Slovenian Steel Group) – Slovenia’s biggest steel producer and one of the largest manufacturers of stainless and special steels in Europe had typical IT structure with semi-independent IT departments on each plant. And like many modern enterprises, SIJ was at work drafting a strategy to transform its operations, systems and processes into a more unified structure in a bid to improve productivity, safety and the all-important bottom line.
Vladimir Arshinov is SIJ’s IT
Director and his initial focus in 2017 was trained on the digital
transformation of SIJ’s IT department to a more transparent organization with a
clear workflow. Previously, IT was a department of innovation with each individual
plant having its own independent function, none of which connected with each
other, often across varying geographies. “This meant that lots of efforts were wasted
solving the same issues with different solutions,” Arshinov reveals.
At the end of 2017, SIJ
established a Project Management Office. PMBOK was selected as a master
methodology and the Head of PMO received PMP certification and developed
internal regulation documents, rules and methodology. After finalizing the
initial establishment phase, hiring project managers and the organization of
the operational work, SIJ came to the conclusion that to raise the scope and
complexity of the projects program, they needed a tool. The MS Project
Management Server was duly selected and implemented allowing SIJ to simplify
observation of the progress of projects and control, while ultimately reducing
duration. Project team meetings were almost eliminated, and the distribution,
control and execution of project tasks, were assigned to the project team
members who managed and controlled projects including budget consumption. Each
project member would then be measured for effectiveness.
Turning the IT department
into a leaner function was a massive first step for SIJ as it needed a firm
foundation upon which all future innovation could sit. And so, the next step in
SIJ’s internal IT transformation was aimed at the most sensitive and critical
area: software development. As with many metallurgical companies SIJ had a bulk
of different IT systems, which were supplied or developed in the past and had
to be either permanently supported, or, due to the business requirements,
changed. One concern with the legacy system was the reliance on locally based
productive software developer engineers developing new solutions and then,
after, supporting them, resulting in a massive drop in development speed, as
development and the subsequent support increased. This situation was causing
overloading, burnout and frustration, triggering a desire to change something;
sometimes resulting in employer change. However, SIJ IT considers people as its
major asset and were determined to break the vicious circle of “one system
– one person – forever”.
“What we did from an organizational point of view was to unify all geographically distributed developers from 4 different companies into the several virtual groups in each department,” Arshinov explains. “Each group has a Team Leader role, who assigns tasks to the group members and controls the execution of each individual task.”
Development
at SIJ is now organised according to an agile approach using scrum boards and
Microsoft Project Server to control all the time sheets of the people involved
in the projects, plus their schedules and budgets. SIJ uses
Microsoft Azure DevOps Server for unified storage of inter-company source code
and Change Request Scrum board monitoring and control. Process and technical
solutions now allow SIJ to involve external software development partners into
the development process while controlling their activities, deliverables and
costs. Developers can now use the Azure DevOps Server
with the scrum board and are now able to register change requests in their
system by themselves, where they see the progress of all individual change
requests coming through the process with the integration of the IT Director
informing the exchange and updating the status of the task development.
In October 2019 SIJ revamped
and migrated its Corporate Business Intelligence system to a new MicroStategy
platform. The project took six months and provided SIJ with an extensive
corporate Business Intelligence system with more than 180 different dashboards
covering production, finance, sales, procurement, HR, Legal and investment
functional areas. The overwhelming majority of the data now uploads
automatically and the business intelligence tool has
created a unified reporting system across the group utilizing the same source
of data in order to integrate it. “There was huge involvement of the business
customers with Oracle BI and this year, we moved to this new platform,”
Arshinov explains. “The front end of the system was changed (from Oracle BI) to
MicroStrategy for usability and a unified interface. Now, SIJ has a system that
looks the same no matter the device it’s accessed from. This project allows us
to organize and develop the team that tests the trial usage and develops the
processes of the PMO (Project Management Office) inside the IT function.”
The BI System contains the
entire spectrum of corporate data and allows SIJ to move quickly and
transparently when taking a management decision, while reducing the number of
mistakes, misunderstandings and time-consuming meetings.
The next system to be unified across the group was the Salesforce CRM system, which is now fully integrated. Then, an Oracle supplier portal followed, which opened the possibility of organizing tenders, thus massively simplifying the purchasing process. Oracle Innovation Management is another successful implementation, which, although a relatively small project, has had a big influence on the business transformation and innovation through increased flexibility. “It is also used to motivate people to suggest improvements and new innovative ideas,” he says.
So,
what have been the major successes, according to Arshinov, following the
ongoing digital transformation at SIJ? “The main difference between now and
then was that each individual company was living alone, and I see now that the
IT function in this case is unifying the people and allowing them to speak in a
single language. It doesn’t matter if it’s a steel center or a big plant,” he
explains. Costs have been dramatically reduced too, outsourcing being a prime
example. In 2016, SIJ was spending more than 70%
annual budget for operational external services.
For 2020, that part of budget reduced to 40%. Meanwhile, the capital investments part of the
budget has grown from 4% in 2016 to 56% in 2020.
The
implementation of a Supply Chain Planning system (from Quintiq) incorporating
the Oracle Business Suite, has improved the delivery, safety and performance of
SIJ’s plants. “We improved Delivery Performance OTIFF (on time and in full) of
a stainless steel plant by 12.8% in six months,” he enthuses. “And we shortened
the production cycle by 15,4% from ordering to shipping, which is a brilliant
result within six months of going live.”
In
SIJ Matal Ravne has replaced the melt shop technology system and entire plant
manufacturing execution system to replace the obsolete legacy system – which
had zero planning functionality – with PSI Metals. “First of all, we’re increasing the level of understanding
and the knowledge of the internal IT team, while dramatically decreasing
project cost by involving internal specialists into the supplier team. That
allows us to save several hundred thousand Euros of project budget and it’s a
win-win situation for the supplier as well. First of all, the supplier is
receiving our team, which knows the production and the limitations and has
extensive inside knowledge. At the end of the day, the commercial value, in
this case, is the cheaper price. Cheaper than anybody else is able to receive.”
Another
and no less important project for Sij Metal Ravne is the joint development work
with Comtrade Laboratory Information Management System (LIMS). Laboratories in
metallurgy companies are complicated and highly demanding environments with
unique processes required for quality control of all products and this solution
covers and improves core laboratory processes and will be highly integrated
with the PSI manufacturing execution system from one side and Oracle ERP on the
other.
Through this massive digital transformation, SIJ has also managed to increase quality control through sophisticated AI, which has massively impacted its operations. The acquisition of scrap metal, a major influence on SIJ’s bottom line, can now be influenced through advanced detection systems that can detect impurities, thus representing huge savings when it comes to procurement. “The conservative saving is €1.4m,” he says.
The
digital transformation at SIJ is touching every aspect of the company’s growth and
is certainly an ongoing journey rather than a destination. “We are not an IT
company, that’s understood,” Arshinov says. “But we are supporting services
inside the business, and of course our main concern will always be supporting
the production of steel. But we’re not there yet.”
Leveraging Radius Networks location technology for curbside pickup, in-store order delivery, and payments.
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Technology has and always will be used to solve problems. At the very basic level, technology is developed and used to make things simpler. Just look at our day to day lives and the way that technology has, for the most part, made our experiences simpler and this has changed the way we as consumers engage with retailers and restaurateurs. We now expect and outright demand that the businesses we enter and purchase food and items from offer the same level of seamlessness that we experience in our own homes. The interesting thing however, is that this isn’t necessarily a new challenge for restaurants and retail stores; these businesses have been looking to enable the most seamless and effective customer service since the very beginning. The only real thing that’s changed is the tools that they have at their disposal.
“At the end of the day, I think this goes for business philosophy in general, you really need to understand the problems that your customers have, and then solve them,” explains Marc Wallace, CEO and Cofounder of Radius Networks, a location technology service provider. “In our case, customers are businesses, such as restaurants, grocery stores, retailers or casinos; so we are targeting very specific problems. In most cases, those problems are taking wasted time out of the equation.”
Picture the traditional, and maybe even stereotypical, restaurant environment, where a food order is ready to go to the table and the service staff has to locate and identify the corresponding table to that order. In some instances, more than most, they may even walk throughout the entire restaurant before arriving at the right table with the right customer. Through wireless-enabled location technology, Radius Networks has transformed the customer experience by allowing businesses to track customers, improve profit margins and ultimately increase customer retention.
Customers have, and will always, vote with their feet, and in order to retain those customers, businesses need to be able to remove the pain points. As Wallace noted, wasted time is one of the single biggest pain points in customer service. Radius Networks offers location-based curbside pickup, in-store and table service solutions, as well as mobile payment technology to remove not only the one pain point, but multiple pain points. “We’re addressing other key problems, such as payments. When you dine-in at a restaurant and are in a hurry to leave, trying to get your server’s attention to pay for your bill can be frustrating for the customer. It leaves a bad taste in their mouth at the end of their dining experience,” says Wallace.
“We’ve developed solutions for making payments remotely without contacting the server. The server is notified when the bill is paid, and they can focus their attention on real problems that other customers have instead of shuttling credit cards back and forth.”
At the time of writing, the world has been gripped by the COVID-19 pandemic, a truly unprecedented event that has completely devastated lives and economies all over the world. It has also completely ripped up the rulebook when it comes to food and retail, with lockdown restrictions forcing businesses to either close down entirely, or pivot to delivery services. Radius Networks’ FlyBuy curbside pickup solution was actually launched over 12 months ago, but it has fast become a key technology offering that is solving an unforeseen problem. By automating the curbside delivery service for customers, FlyBuy provides a turnkey, end-to-end solution that uses the customer’s location for a faster, easier order pickup experience. “There was already a pre-existing return on investment (ROI) with FlyBuy because we were reducing the wait times for customers when ordering for pickup, which results in more frequent visits” says Wallace. “Throughout this pandemic, curbside delivery has become the only channel that people can do, so the importance of it has risen dramatically. It was once within a business’s top ten things it needed to consider, and has now risen to the very top of their to-do list.”
Radius Networks is currently offering a free version of both its FlyBuy curbside and buy-online-pick-up-in-store (BOPIS) software for restaurants, retailers, and non-profits during the COVID-19 crisis.
By its very definition, location tracking technology appears to be very intrusive. It is tracking locations and using that data to inform decision making, after all, and naturally that can cause a little fear and a hesitation. Wallace acknowledges these concerns and understands them wholeheartedly. “We had a decision to make early on in the company whether we were going to harvest data and use it for marketing purposes or whether we were going to be a privacy-centric company and focus on providing a solution,” he says. “We chose to be a privacy-centric company, mostly because all of us as individuals wanted that for ourselves.”
“When it comes to us as a location company, are very transparent with our customers and our businesses, so that they can be transparent with their consumer customers about what we’re doing with their location data, what we’re using it for, and how long we’re keeping it.”
This transparency is built into the very DNA of the company. FlyBuy will only ever use the location data to alert restaurant/retail staff that a customer is on the way and onsite to pick up their order, and only after the customer has opted-in to sharing that information. After a period of time has passed, they will then delete that data entirely. Its policy dictates that it does not, and will never, share that data with any third party, giving customers peace of mind that their data is safe and used only as agreed when they opt-in. Wallace believes that, while the reluctance and fear is understandable, consumers have access to services’ policies and can ‘do some homework’ in order to allay them. “I think, given the amount of options we are given today, customers can no longer just assume every location company is tracking or doing something devious with their information. They need to be aware when they approve location usage and when they don’t,” he says. “If they can be sure that sharing their location brings value to them, whether it be to have a car service come to their exact location, or their groceries meet them at their car immediately upon arriving in the pickup zone, they will happily share their location. Once they have established a level of trust in the people that are requesting location permissions, and see the benefits it brings to their lives, there is no problem.”
Radius Networks was founded in 2011, and for the best part of a decade, it has grown from strength to strength as a business, working with the likes of McDonald’s, Five Guys, and Coca-Cola, as well as being recognized in the INC 500, the Deloitte Fast 500, and the CIO Magazine’s Most Promising Digital Experience Solution Provider. But none of these successes would have been made possible, without a solid and sound foundation within the business. “I’ve been told by people ‘wow you guys got really lucky.’ Luck had absolutely nothing to do with it. Our mission is to solve problems for businesses, and right now businesses need our help more than ever. There were a lot of really difficult times over the years where we worked hard and earned the right to stay in the game, and we are once-again earning it right now,” says Wallace.
“Take FlyBuy as an example. I’ve been asked as to whether I thought this piece of technology that we developed over the last few years would ever be as important as it is right now. Yes. Yes I did, and so did everyone else on our team, and that’s key to our success as a company. Every single person at Radius Networks is engaged and believes in what we do.”
In these times of crisis, the spotlight has shifted significantly onto those business fundamentals and Wallace is extremely proud of the business he has built and the people within it. “The business principles that we’ve been practicing over the last few years have paid off. We are a strong company with sound fundamentals and sound financials. We haven’t over extended ourselves, either from an investment perspective or from an expenses perspective and that’s paying off for us now,” he says.
“It is tough in the current environment to point to positives, because you almost feel ashamed to do so. I think we’ve done a lot as a company to help others; we’ve given our product away for free to hundreds of small businesses, thousands of locations, with no obligation, and it’s a testament to the work we have done to get to this point. A lot of companies are doing a lot of good work to help each other right now and they can do so because they are built on solid foundations.”
Those foundations start from the very top. Wallace is a key advocate in communication. Much like Radius Networks communicates in an open and transparent way with its customers, the same rules apply from within. He admits that the pandemic has, ironically, made that communication better in some aspects, but it has always been a key part of what makes Radius Networks tick. “We’re talking to our customers all the time. My team is the best team in the world. They’re working in overdrive right now, communicating at such a high level, and listening to customer needs, because their needs have changed dramatically,” he says.
“As the CEO, I try to have frequent hands-on-deck tag-ups with everybody to give them an update and try to be as transparent as possible about the status of the business and what’s happening. I do this so they can feel comfortable that they have a job today, and they’ll have a job tomorrow. We work together to come up with our team goals, and stay aligned and upfront about everything that may come up along the way.”
Listening to the customer is key. That much is no secret. But when it comes to technology, listening to customers is absolutely essential when ensuring that what you’re offering is what the customers need and what they want. Wallace’s role as the CEO is not to sit at the top of the business and leave it to everyone else. He is very much active and engaged at every level to ensure that everything Radius Networks is doing is driven by the customer. Wallace is proud of the culture within his business and often finds himself sitting on a call with a major customer and beaming at how well his team listens and understands the customer’s needs and how Radius can successfully address them. “I’m so proud that we, as a team, have a culture that takes so much pride in their work,” he says. “Our people have always been solid employees, pre pandemic, but they have become absolute rockstars today.”
The world as we know it has changed forever and we cannot begin to predict what this new world will look like post pandemic. One thing is for certain, communication, and the way in which businesses engage with their customers, will never be the same again. Radius Networks has enjoyed success after success over the past ten years, and as we all experience great uncertainty, the goal for Wallace is to continue providing valuable location technology for many years to come. The key to succeeding, regardless of such uncertainty, remains the same for Wallace and his team. “Persistence,” he says. “It’s about persisting through the bad times, just like the good times, and trusting your business fundamentals and experience. Being transparent with employees and having a good team around you is key.”
Mercedes aren’t just luxury vehicle engineers, they’re innovators. This should hardly be surprising given the fact that Karl Benz, back…
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Mercedes aren’t just
luxury vehicle engineers, they’re innovators. This should hardly be surprising
given the fact that Karl Benz, back in 1886, was patented with the rights to
the development of the first ever car, a three-wheel vehicle, titled
Motorwagen.
A leading car brand in
the automotive industry, the German manufacturer, Mercedes, have mastered the
art of luxury engineering. It’s unsurprising that this brand, originally from Stuttgart,
are the creators of some of the most premium models of vehicles we’ve been
graced with.
After Benz’s successes
over the years, they have certainly been on the frontline of technological
innovation which allowed them to perform better than their competitors. If
you’ve had your Mercedes A Class for example in for a service, you’re probably
aware of the main features these beasts have to offer. However, in this
article, we take a look at ways the German manufacturer has kept a distance
between themselves in and other automotive companies in the industry,
maintaining the title of tech leaders.
Popularly known as the
G-Class, the Gelandewagen is a SUV like never before. Initially built as a
military vehicle back in the late 70s, it has become synonymous with the
affluent members of society throughout the world. Sharp edges and a bold frame
sit outside the natural smooth ergonomic design of Mercedes-Benz. However,
there is no denying that this is a fan favourite —the six-wheel model even
became popular with the Pope. Meanwhile, the 300 SL model, recognisable from a
movie series featuring a certain Mr Bond, was the car that helped bring Benz
back after the Second World War.
Without a doubt the
most iconic vehicle in the Mercedes lock up, despite astounding capabilities on
the race track and an exterior design which makes it look like it belongs on
the winding roads of the French Riviera accompanying a Stella Artois advert, it
wasn’t that that made the car so memorable. Gullwing doors, opening up as
opposed to out, were a first — but, despite what one may think, this wasn’t a
style choice. In fact, the shape of the car’s chassis prevented conventional
doors being included.
When Imagination Becomes Real Life
The F200 model was
initially introduced as a concept prototype with a wide range of technological
augmentations. Helping form the basis of the design used in the S-Class and the
CL-Class, the F200 imagination, interestingly, didn’t include side mirrors or
your standard rear-view. Instead of these features that aid visibility, the
F200 included four cameras mounted in the corners of the roof, and one
additional camera fixed to the rear bumper.
Output from the
cameras was fed to a digital screen where the mirror would typically be
located. Despite the fact cars in 2019 are still using mirrors, quite
remarkably, the F200 started a revolution that would see parking cameras
included in the vast majority of vehicles. Meanwhile, ambience was high up on
the list of priorities of the F200, with an industry first lector-transparent
glass roof, which, with the touch of a button, would morph from see-through to
opaque.
Anti-lock Brakes
The concept of the
anti-lock brakes was originally created by Gabriel Voisin in 1929, which
prevents wheels from locking. However, it wasn’t until the 1970s when a joint
venture between Bosch and Mercedes saw the system introduced into production
vehicles. Now, ABS, which helps the driver maintain control of the vehicle, is
a standard feature on every vehicle following the introduction by Mercedes. The
safety in vehicles was rapidly enhanced as a result.
Creation of the Airbag
It’s hard to believe
that airbags weren’t always a necessary feature of cars. Back in 1981, after
more than a decade of development and testing, undoubtedly the world’s most
crucial safety feature was finally introduced. Becoming a common feature in all
Mercedes vehicles as of 1992, two years before the passenger side airbag was
introduced, there is no denying that the airbag has transformed automotive
health and safety.
Implementation of Touch-Sensitive
Controls
A concept which has
completely revolutionised motoring is ease of use,
Ease of use is an
increasingly important aspect of motoring, for example consider cruise control
and how this has drastically enhanced the everyday driving experience. Back in
2017, Mercedes unveiled the tech features available on their next generation
E-Class, one of which being an innovative system which lets the driver control
the infotainment system from the steering-wheel using finger swipes. Not only
is the system effortless and considerably safer than the alternatives, it was
also an industry first when Mercedes rolled it out.
It is undeniable that
Mercedes are an industry leader in the automotive industry. From innovation in
safety to amusement, Mercedes have truly thought of it all. One step ahead of
their competitors, we can’t wait to see what other advancements they have under
their sleeve.
As a result of the COVID-19 pandemic, we are witnessing an unprecedented increase in home working, which requires remote access for tools and communications to conduct our daily jobs. This disruption is putting IT infrastructures at risk, while validating much of the industry’s investment in business continuity, resilience, scalability, accessibility, data protection and security.
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With a global at-home workforce now entirely in place, what can IT professionals and CIOs do to ensure their private and public clouds can keep up and remain safe? And what steps and tests should they take to support a protracted change in the way we work? According to a recent Gartner survey, more than 74 percent of CFOs and business finance leaders expect at least five percent of their workforce will never return to their usual office workspace — becoming permanent work-from-home employees after the pandemic ends.
Even in the face of a global pandemic, we continue to promote a culture that requires easy and instant access to our tools, information and each other over cloud collaboration tools like Slack, Google Drive, Office 365, Microsoft Teams, as well as in-house applications.
This demand on IT requires private, public and hybrid clouds to have the agility, scalability and security to support entire workforces no matter where they are. IT leaders who have planned for this worst-case scenario are ready to scale at a moment’s notice. Likewise, they’ve already considered the impact on licensing, vulnerability and added traffic from employees working at home over personal devices and unsecured networks.
IT professionals who support an at-home workforce need to understand the difference between employees “running” applications and “accessing” applications. When technology is set up and configured correctly, it should be easy to access. That’s the whole idea of SaaS and cloud. The challenge is, how do you administer it? How do you run it?
Organisations that maintain private clouds onsite, which might not be accessible during stay-at-home orders, need a plan to make repairs physically — like swapping hard drives, replacing switches or cables — when their employees are home.
Likewise, whether at home or work, the end-user experience should be the same. If all apps and tools are optimal in an office environment, how do you make those adjustments ahead of time, so remote employees still have the same access and capabilities as if they’re working in the office? And how do you maintain your security and IT compliance obligations?
Where and how to start?
The easiest advice might be to avoid trying to boil the ocean all at once. If your applications and data aren’t on the cloud already, it’s possible to mobilise secure VPNs and encrypt applications for mobile devices. If you’re on the cloud already, you’re several steps ahead of others. But you still need to work with your cloud service provider to review your workloads, applications, and data requirements.
At the same time you’re focusing on accessibility, remember to address your vulnerabilities. Right now, cybercriminals are stepping up their attacks to take advantage of remote employees. Phishing attacks are at an all-time high on small and large businesses, as well as public resources like hospitals and healthcare providers.
Now’s the time to reinforce your organisation’s IT security and compliance guidelines, many of which include the relevance of when employees travel or occasionally work from home. This includes a refresher on password policies and how to identify and report phishing attempts. Help employees with securing their home networks, and all the other policies and guidelines they would typically follow at work to protect your company and customer data. This might also be an excellent time to train employees on document and data retention best practices.
COVID-19 will create additional security threats as attackers attempt to take advantage of employees spending more time online while at home and working in unfamiliar circumstances. Some of the biggest threats associated with the pandemic include phishing emails, spear phishing attachments, cybercriminals masquerading fake VPNs, remote meeting software and mobile apps.
Above all, you must have the same level of resilience and redundancy plans in place for home working as you do for onsite, even if you are 100 percent in the cloud. It is important to recognise that the same problems that happen on a day-to-day basis when you’re in the office can also occur when the office is vacant.
Prepare for the new normal
Going forward, all businesses should plan for an eventuality like COVID-19 happening again. This means understanding data security, business continuity, resilience, scalability, accessibility and so much more. For example, you may not need extra capacity and compute power now; but you need to know that within minutes you can get to that number. And, as I mentioned earlier, a lot of organisations have internal-only networks to manage power supply, fans, cooling and switches. What if you can’t get into the building?
Futureproof and understand the boundaries between personal and company devices and assets. Understand what you need to put into place to protect your business and your employees.
And finally, companies that are leveraging cloud services need to communicate frequently with their providers to address future needs and concerns. Make sure you know what they can do ahead of time to keep your remote workforce operating. Hopefully, these circumstances will be short-term, and life will return to some normality soon, but my advice is to always plan for every eventuality and what may now be the new normal.
Traditional banks will fall even further behind in market share and customer experience due to the global coronavirus pandemic, warns the CEO of one of the world’s largest independent financial advisory organizations.
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The comments from Nigel Green, founder and chief executive of deVere Group, follow research that the use of financial apps is up by 72 per cent since mid-March.
Mr Green observes: “The pandemic has accelerated those trends that were already shaping business. These include greater inclusion of tech into our every day lives.
“Coronavirus has ushered in a new world, with digitalization and new technologies fuelling the changes. This can be seen by demand soaring for video-calling platforms such as Google Hangouts, Skype, FaceTime and Zoom amongst others, as more people than ever work remotely.
“It’s also underscored by the increasing use of fintech apps which allow users immediate, on-the-go, 24/7 access to, use, and management of their money.”
He continues: “There’s a historical precedent for what’s happening now.
“Banks and other traditional financial services providers were, in most cases, spectacularly caught off guard by the 2008-2009 financial crash.
“As they found their way into a new world with a new regulatory landscape and new customer expectations, business and tech developments were way down their to-do list. They were in survival mode.
“This is when agile, tech-driven challenger banks and fintech firms swooped in to fill the void left between what traditional financial services companies, especially the traditional banks, were offering and what customers were expecting, especially in terms of customer experience.”
Mr Green goes on to add: “The fintech firms, which offer mobile banking, savings and investment apps, and peer-to-peer lending, amongst other services, now have a decade of development, experience and expertise over many traditional banks.
“As even more people are now embracing fintech due to Covid-19-triggered social distancing, isolation and lockdowns, and as the apps are growing in popularity due to their convenience, increased security, and as people become ever-more tech-savvy, it’s likely that ‘bricks and mortar’ banks will fall even further behind in market share and customer experience.”
The deVere CEO concludes: “Coronavirus is going to further disrupt the wider banking sector. It will act as another catalyst for people to seek fintech alternatives to access, manage, use, save and invest their money across the world.”
Carlo D’Alanno, Executive Creative Director at Rufus Leonard explores how the integration of your brand and your people with your technology is the secret to delivering meaningful and game-changing disruption.
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What makes a truly transformational
and disruptive idea? The answer is two-fold. Firstly, these ideas understand
and respond to new behaviours while leveraging new or underutilised technology.
And secondly, they often come from ambitious organisations who understand how
to integrate the right people and skills to stretch a vision and deliver on a
single, motivating purpose or mission.
In short, game-changing ideas create
real-world impact for people and businesses. And this happens when creativity
and technology come together. After all, companies that harness technology to
deliver their promise grow 4X faster than their competitors.
Carlo D’Alanno, Executive Creative
Director at Rufus
Leonard explores how the integration of your
brand and your people with your technology is the secret to delivering
meaningful and game-changing disruption.
Your brand is your difference
Brands that
dominate have a credible offering delivered in a way that others can’t (or don’t
think of first). Think Nike+ turning a footwear brand into a premium fitness
provider. Zipcar proving the sharing economy can work with real stuff. Or
Kickstarter connecting bedroom entrepreneurs with investment. Find your
distinct position and build around a mission that your people can buy into and
your customer experience can deliver on.
It’s about
identifying and investing in hero moments along the journey – specifically
where your brand could credibly provide a unique experience – which will create
a memorable experience for your customers. Let’s take a look at a few examples.
Threads – customer journey mapping and digital ecosystem design at its best
The idea: Personal, luxury fashion shopping through Instagram and
WhatsApp/WeChat.
The stretch: For a sector that’s build around appearances, Threads have
understood that so many customers now engage with brands via social and avoid
retail spaces when in ‘research mode’. They have taken a seemingly vital
channel out of the mix.
The transformation: Pioneers in chat-commerce, they’ve built a platform where
someone sees an item on social, starts a chat with an adviser and completes the
purchase in the app. This means integration into social platforms, and
retailer/manufacturer inventories, as well as secure payment technologies.
The impact: With an average transaction value of $2.5k per-spend, and a
recent funding round of $20m, they have become a significant partner in the
fashion retail mix.
Squarespace – democratising a previously closed world
The idea: A website-building tool for anyone with a computer and an idea.
The stretch: They democratised the previously closed world of website
creation, giving the tools to the people with the business idea, but not the
design and code skills.
The transformation: Building code into templates transformed the way sites can be
built without the need for training or expertise. Complete with a user
interface that champions their own principles of simplicity, and accessibility.
It’s a rare thing – a beautiful piece of software.
The impact: 2m+ subscribers, valued at $1.7bn, hosting circa 350k websites
with 22% market share (self-editing and publishing plus hosting). These big
numbers speak to their success in growing a previously untapped niche: entrepreneurs
and small-scale start-ups looking for a cost-effective and beautiful route to
market.
R2 Data Labs – from manufacturing to a data analytics powerhouse
The idea: A data innovation catalyst inside Rolls Royce.
The stretch: Improving the way customers operate by delivering untapped value
and insight from aggregating a myriad of data sources.
The transformation: Utilising new technology in Machine Learning and AI, they’ve
moved the company from a product-based to a service-based model. Working in
partnership with other Rolls Royce business units using manufacturing and
design to build a virtual environment for experimentation that will give
customers unparalleled insight and the ability to understand their data in new
visual ways.
The impact: These data analytical capabilities improve efficiency,
productivity and risk management. New data insight is impacting the ways Roll
Royce design and manufacture their products and has opened up new revenue
stream in aftersales care. R2 Data Labs is building data innovation
communities through skill sharing, accelerator programmes and partnerships.
Creating a culture of shared creative leadership
To embed game-changing thinking into
your organisation, it’s important to nurture the integration of passion and
profession, encouraging your people to be the driving force behind shaping your
business. So ask yourself and your employees these questions:
Passion: how might we help people find the ‘one thing’
that motivates their work?
Purpose: how might we identify the common goal that
brings individual passions together?
Flow: how might we create a way of working and
environment that lets a team get immersed and motivated and, be supportive
and honest?
Risk Taking: how might we make it possible,
and acceptable, to stretch our clients outside of their comfort zone?
Your key takeout
How you
answer these questions will be unique to your business, culture and sector. The
common thread that all successfully, strategic and creative brands share is a
willingness to integrate and delegate. To bring together people with diverse
talents, passions, backgrounds and skillsets and to support them to solve the
company’s biggest problems for themselves.
The end of the Wild West of digital advertising is nigh: data is the new black gold, and advertising has been mining it recklessly. That can’t go on.
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While the glory days of data harvesting were great for ad-tech, they were less great for advertising. Data-breaches, Cambridge Analytica, and “stalker ads” that overuse targeting have all helped to undermine consumers’ trust. Back in April 2019, Kantar’s ‘Dimension’ study showed 54% of UK consumers objected to being targeted based on their past online activity (a figure I suspect their 2020 iteration of the report will demonstrate has gone up, given consumers’ growing awareness of the implications of online targeting), 70% of consumers said they see the same ads over and over again and only 11% said they actually enjoy advertising. Wow. Those findings, and many others like them since, underline the crisis of trust digital advertising is facing.
Private – Keep Out
There is a complacent view held by some in the ad-industry, that privacy concerns can be ignored as “this year’s storm in a teacup”. Pay lip-service to the law, and carry-on as before. But that’s of course missing the point – long-term trust erosion – and hiding the real cost to the industry.
I agree that most of the public don’t care deeply about privacy. Joe Public is unlikely to switch off Facebook or use the Tor browser. But that doesn’t mean they’re happy.
People don’t like feeling powerless or taken advantage of. Today, that’s exactly how they feel, and they’re becoming more vocal – with those voices starting to carry weight. In Ipsos-Mori’s survey last month (commissioned by the Centre for Data Ethics and Innovation and Sciencewise, and forming the basis of the UK Government’s official Review of Online Targeting), almost all participants felt that change was required to the way in which online targeting, in particular, currently operates, with many saying that they were sufficiently concerned about aspects of the process, or about the potential harms that could occur, that they remained unsure whether the benefits outweigh the harms.
But it’s not all bad…
That said, the same study revealed that the majority of people also felt that if steps could be taken to resolve these concerns, they would likely advocate that overall online targeting makes a positive contribution to society. So, there we have it – a window of opportunity, a second chance for adtech, for advertising as a whole, and for brands willing to make integrity a core part of how they advertise specifically, and operate more broadly.
Remember, that same Kantar study also demonstrated the power of targeting when it
is done right, with 44% of respondents saying they do enjoy ads that are directly relevant, 45% agreeing that the ads tailored to them are more interesting than other ads, and 61%
saying they prefer to see ads relevant to their interests. It is not relevant ads that people dislike — it’s the surreptitious targeting. So as an industry, we need to change the model from treating people as “targets”, to treating them as partners.
Time for a reset
First off, we have to begin with a commitment to genuine transparency about what customer data is held and how it is used. The bombardment of consent checkboxes may help to provide legal cover, but it is harmful to the deeper purpose of building trust and a brand-customer relationship. Asking “what is legal?” is the wrong approach. Instead, we should start with respect for the customer, and put them at the centre of engagement design. Other parts of the B2C world of course already understand that the customer is at the centre of everything – creative agencies being one obvious example. That understanding and acceptance now needs to extend to the infrastructure of advertising.
Policy change and tech advancement must go hand in hand
Positive change here requires both policy and technical development. We do need new tools. Tools for users to easily manage their profile data — to make it easy for them to both block and allow data-use, without fighting through a swarm of in-human checkboxes.
Part of that will be establishing standards for users (via their browsers and phones), publishers (via the SSPs), and brands (via the DSPs, and their own data) to work together.
The key piece will be making it easy for users to setup an enforceable data policy that reflects their attitudes. A data policy would say what you reveal, and how and to whom. A good tool would make it easy for people to manage that, and stay informed and in control without spending much time at all. That will in turn need a data ecosystem, where data can be used without losing privacy.
Enabling personalization, gaining trust
With a better data ecosystem, there is still untapped and valuable data — for example the CRM and other customer-history data that brands hold — which could be brought in.
For the public, a trustworthy data ecosystem would unlock many benefits. Consumers find personalization useful. Whilst they are somewhat concerned about their privacy, as Gartner’s study showed, 62% of consumers said personalized attention is important when it helps them get a better deal, and nearly half said they valued it for saving time and making the purchase process easier. Findings which pretty much match those from the Ipsos study last month.
The end of the Wild West could ultimately be good for the industry. If brands are fair and transparent when they connect with the public – through all touchpoints, online ads included – there is certainly an opportunity to build more valuable engagement.
After all, the Wild West of gunslingers was not nearly as productive as the modern California that today makes movies about gunslingers.
By Daniel Winterstein, CTO & co-founder at Good-Loop
As UK businesses look towards the cloud to enable digital innovation, more than half (58%) say the move has been…
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As UK
businesses look towards the cloud to enable digital innovation, more than half
(58%) say the move has been more costly than envisaged, according to new
research from Capita’s Technology Solutions division.
However, the
research reveals that cloud migration (72%) remains the top transformational
priority for most organisations, ahead of process automation (45%), big data
analytics (40%), and artificial intelligence/machine learning (31%). This is a
further indication that organisations see cloud as a core component to
effectively enabling these next-generation technologies.
The ‘From Cloud Migration
to Digital Innovation’ report, which surveyed 200 UK IT decision
makers, cites reduced cost (61%), improved speed of delivery (57%), and
increased IT security (52%) as the main reasons for organisations to move to
the cloud. However, 90% of respondents admitted that cloud migration had been
delayed in their organisation due to one or more unforeseen factors. Issues
such as cost (39%), workload and application re-architecting (38%), security
concerns (37%), and skills shortages (35%) all point to a process that is more
complicated than expected.
“Cloud adoption is a critical foundational step towards opening up real
transformative opportunities offered by cloud-native technologies and emerging
digital platforms and services. While some forward-thinking organisations are able to keep their eye on
the goal, the complexity of the migration and application modernisation process
tends to introduce delays and cost-implications that slow down progress,” said
Wasif Afghan, head of Cloud and Platform at Capita’s Technology Solutions
division.
A more
complex and costly migration than expected
On average,
those businesses asked had migrated 45% of their workloads and applications to
the cloud. However, this did correlate to organisation size as organisations
with more than 5,000 employees have further to go, with less than a third (31%)
of workloads and applications migrated. This could be the result of having
larger, more complicated systems.
Nearly half
(43%) of respondents found security to be one of the greatest challenges they
had faced during their migration. A lack of internal skills (34%), gaining
budget approval (32%), and progressing legacy migration solutions (32%) were
other significant challenges organisations had faced.
In fact, half
of respondents found their organisation had to ‘rearchitect’ more workloads and
optimise them for the cloud than they had expected. Further, only just over a
quarter (27%) found that labour/logistical costs have decreased – a key driver
for moving to the cloud in the first place.
“Every migration journey
is unique in both its destination and starting point. While some organisations
are either ‘born in the cloud’ or can gather the resources to transform in a
relatively short space of time, the majority will have a much slower, more
complex path. Many larger organisations that have been established for a long
time will have heritage IT systems and traditional processes that can’t simply
be lifted and shifted to the cloud straight away due to commercial or technical
reasons, meaning a hybrid IT approach is often required. Many organisations
haven’t yet fully explored how they can make hybrid work for them, combining
the benefits of newer cloud services whilst operating and optimising their
heritage IT estate,” said Afghan.
A platform
for innovation
Despite some of
the challenges outlined in the report, the majority (86%) of respondents agree
that the benefits of cloud are compelling enough to outweigh its downsides. For
more than three-quarters (76%) of organisations, moving to the cloud has driven
an improvement in IT service levels, while two-thirds (67%) report that cloud
has proven more secure than on-premise.
Overall,
three-quarters of organisations claimed to be satisfied with their cloud
migrations. However, only 16% were ‘extremely satisfied’ – indicating
that most organisations have not yet seen the full benefits or transformative
potential of their cloud investments. In addition, 42% of respondents currently
believe that cloud had ‘overpromised and underdelivered’.
“It’s no longer enough to think
of cloud as simply a way to benefit from initial cost savings or just another
place to store applications and data. Today, the move to cloud is driving a
spirit of innovation right across the enterprise, paving the way for advanced
digital services to be rolled out in a highly accessible, faster and more
cost-effective way – whether that’s AI, RPA, complex data analytics or machine
learning. Only through the alignment of IT and lines of business leadership –
in terms of goals, vision, direction and mindset – can organisations fully unleash the potential of cloud to
address their key business objectives, whether that is improving business
agility, delivering an enhanced customer experience or enhancing business
efficiencies.” said Afghan.
Airport chaos, banking glitches, cancelled surgeries, data loss; the potential consequences of IT faults are well known, far-reaching and the…
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Airport chaos, banking glitches, cancelled surgeries, data loss; the potential consequences of IT faults are well known, far-reaching and the subject of frequent headlines. Still, fewer than half of the UK’s SMEs are prepared to cope adequately in the event of IT disruption. This is according to the latest research* commissioned by full-service IT consultancyILUX.
The survey, which canvassed the opinions of over 500 UK-based SMEs, revealed that just two fifths (42%) of those polled had an IT disaster recovery plan in place. This is despite the fact that a significant proportion (24%) had already experienced damage or loss due to an IT fault.
Of the proportion who have experienced damage and / or loss:
• 43% experienced the loss of important data
• 40% experienced a drop in staff productivity
• 29% suffered a loss of sales / transactions
• 24% experienced data breach / GDPR implications.
Data loss can potentially have very serious consequences for companies, especially if the loss involves personal data protected under the General Data Protection Regulation (GDPR)[1], as was the case for almost a quarter of respondents. Failure to comply with GDPR can lead to significant financial penalties, as the recent heavy fines issued to airline British Airways and hotel chain Marriot bear out.
James Tilbury, Founder of ILUX, comments: “Although a significant proportion of UK SMEs have experienced serious problems as a result of IT disruption, it seems that the majority are still failing to take adequate steps to prevent or mitigate faults.
“This suggests that preparing for the risk of IT disruption is still treated as more of an afterthought than an essential aspect of business planning by the majority of SMEs. I would urge caution to any firms thinking in this way. Businesses today tend to be critically reliant on technology to power their everyday processes and keep operations running smoothly, securely and efficiently. Not only that, the right technology-driven processes can also set them apart, delivering innovation, improved customer experiences, a competitive edge – and ultimately growth.”
These findings are explored in more detail in the ILUX Whitepaper “Business Worries Keeping You Up At Night?” which can be downloaded here https://www.ilux.co.uk/just-relax.
When Malta-based construction and property enterprise Vassallo Group embarked on a company-wide digital transformation, it looked to CIO Carlo Aquilina…
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When Malta-based construction and property enterprise Vassallo Group embarked on a company-wide digital transformation, it looked to CIO Carlo Aquilina to build the entire infrastructure, operations and innovations at the group…
Walk through the streets of the
beautiful island of Malta and you will not be able to escape the work of the
Vassallo Group. Property, hospitality, education and healthcare, the Maltese
construction and property company completely reshaped Malta following the
devastation caused by the Second World War. Indeed, Vassallo Group embarked on
a mission to ‘rebuild the nation’ to its former glory and beyond.
Building on its strengths, the Group carries a legacy that is over 70 years old, and over the years has diversified its operations that have brought about expansion and investment. Today, Vassallo Group, stands at the forefront of several different sectors in the local market that include property and construction, furniture and interiors, elderly and disability care, catering, hospitality, architecture and education. The Vassallo Group is a large, complex enterprise and represents a unique challenge to its IT function, which provides technological solutions and support to all of the companies and their users.
Vassallo Group talks to Interface Magazine
Carlo Aquilina was approached to take on the
role of CIO at Vassallo in 2015, having spent a while building up an IT team at
a manufacturing enterprise. “When I started in manufacturing, IT needed lots of
work. We started from scratch. We built up the whole IT department and the
whole team. When Vassallo approached me, they offered me that challenge again
as they really lacked IT. It was a real challenge, but I built my team and we
started on what needed to be done.”
Vassallo Group previously had a shareholding in
an IT company and this sister company was providing IT, but the level of
support was not sufficient for their local clients, thus Aquilina was asked to
build the IT function that would serve the 1,900-plus employees and its
extensive client base. “When I joined, I was tasked with the project: to start
from scratch. I gave the board of directors a number of options. Should we go
on premise, should we go with another hosting company, should we go hybrid,
should we go cloud? The main ambition was very simple and I was given six
months to come up with a solution where we gave our clients, our clients,
meaning our users basically, a brand new environment with zero downtime. It was
all firefighting in that first year.”
Vassallo went 100% cloud with Microsoft Azure, which Aquilina believed to be the best short-term, and long-term solution. “We’re a Maltese company. We’re not an IT focused company. IT is here to provide service to the business. Our business is not IT. We’re not a gaming company. All of our products are Microsoft, and so it was an obvious choice to move to Azure.” Vassallo agreed to go 100% to the cloud, having drawn a blank against the large capital expenditure associated with on-premise. “With cloud, you don’t invest in anything and everything is top of the range. Of course, it also helps to be paying operational costs and not capital costs. That was the way forward and then they (the board) embraced it. There was a number of partners who approached us to do this, to help us with this migration. I chose CyberSift, which was a start-up, actually.” An advantage to working with a start-up is that they’re not encumbered by a large kind backend and can move audaciously and quickly and this was certainly an appeal to Aquilina and his team. “I knew one of the technicians; a brilliant engineer and that helped. Plus, the price we were given was also from a start-up perspective.”
Vassallo Group. A Maltese institution
CyberSift viewed the chance to work with
Vassallo with similar relish and the then start-up provided a specific engineer
to be onsite with the IT team at Vassallo for the full duration of the
migration. “Whatever I was asking, I was getting,” Aquilina explains. “‘Okay,
we’ll do it for you, but you’ll have to promote us, after.’ Now I’m promoting
them. So, we had engineers working for us and I didn’t need to grow my team. In
fact, we’re a very small team.”
The key thing Aquilina and his team built in
that crucial first year was ‘trust’. “I had the trust of the board of directors
because every time they asked me something, I satisfied their request. So,
there was trust. At the end of the day, it’s a family-owned company. Trust is
very important.”
Aquilina and his team were given six months to
deliver the project and took 2-3 three months to design and implement the
infrastructure. The following three months, they contacted suppliers, before
moving the software. “If it’s on premise or on cloud, there was remote access.
It was teamwork, everyone pulling the same rope. Whenever one of the suppliers
told us, ‘Listen, we’re not available this week. Let’s do it next week. We’ll
slot in someone else. We’ll set meetings. We’ll explain what we are doing.’ All
they needed to know is that we were moving from server A to server B. They did
it for us because it was their software, their app, their solution.”
With any large-scale technological transformation there are challenges although Vassallo seemed to evade many of the pitfalls through great organisation. “I don’t think we had actually the biggest challenges because it was all planned out. We used to meet every day with the engineer who used to work for us and my team. It was a case of ‘What happened yesterday, what happened today, what is going to happen tomorrow and why? Are we on track? Yes. If not, why? What can we do?’ We worked late at night so that we could achieve it. It was all based on trust and teamwork. It was a case of open-heart surgery because the business wanted to work. The business kept on working even though we were doing open-heart surgery. We had that support from everyone. Everyone understood that this needed to be done. We had support from everyone, from all the partners, from Microsoft, everyone.”
Even though digital transformation involves technical infrastructure, software, servers and cloud, people are still integral to a successful outcome. “Yes, they are extremely important,” Aquilina explains. “There are the users, the customers and the IT team. We are a very small team and that really helped, because a huge team would require lots more organisation and more hand holding. It was me who was both sponsoring and managing the project. I had the lead engineer who was doing the actual work, remotely. They had an assistant administrator who was assisting. People are so important.”
Vassallo Group holds an annual internal awards
and in 2016, the IT department was awarded ‘Best Customer Focused Department’
even though it had been, in Aquilina’s terms, firefighting. We were there
constantly, anytime, any day of the week. The team and I were presented with
this trophy, which proved my theory that the company had move to something much
more stable.”
Now Vassallo Group is reaping the benefits of
this transformation. “IT-wise, we are working on a business intelligence
project. Now we have the infrastructure ready and a solid base or foundation, I
want to give something back to the business. We implemented an ERP solution,
which Finance, Logistics and Operations are using. I don’t want the directors
to go into board meetings with huge amount of papers. I want them to go in with
just a laptop. The data is live. We’ve already done that for one of the
companies and it’s working. You can connect to the TV to project live data.
That is business intelligence. We’re working on the other companies too. Now
that they know what they can get, everybody’s bombarding us with requests. Of
course, we’re taking our time and that is ongoing.”
From BI, Aquilina wants to harness the power of
AI in board meetings. “I want to give them the facility to project live data,
but I also want to give them the facility to change the data accordingly. They
will see the results with AI.” Recruitment could be a big beneficiary of these
initiatives too. “What if we employ 100 people? AI will work out the costs,
work out the benefits of employing that many people. Then you can take an
educated decision. ‘Should we employ 100 or 200? Let’s put in 200 more
employees. What’s the cost?’ AI will work out the costs as well as the
benefits. That’s all in progress. However, these are very sensitive tools that
we need to use and if the tool gives you the wrong information, then you will
make the wrong decision. I explained this to the board and they gave me the
time needed to do it properly. We have to be very meticulous. They understood
and told me, ‘Whenever you’re comfortable, we can start using.’ The CIO has to
have 100% trust from the board of directors, because if there’s no trust, they
keep on asking, ‘But why and how?’ That is the way forward.”
Providing technological infrastructure, new
software and cyber security for such a large company means that Aquilina’s
hands are certainly full. “We support about 1,900 employees and 500 users. I
can afford to have a relatively small team because we have a solid base, and a
solid infrastructure. I have a wonderful team. I recruited everyone from
outside the business. I didn’t find anyone here, so they all respect me. We’re
all friends at the end of the day, although I am their manager. We talk about
anything and I help when needed. So, there’s trust from them and the senior
management, which I believe is extremely important. It’s a wonderful place to
work.”
As UK businesses look towards the cloud to enable digital innovation, more than half (58%) say the move has been…
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As UK
businesses look towards the cloud to enable digital innovation, more than half
(58%) say the move has been more costly than envisaged, according to new
research from Capita’s Technology Solutions division.
However, the
research reveals that cloud migration (72%) remains the top transformational
priority for most organisations, ahead of process automation (45%), big data
analytics (40%), and artificial intelligence/machine learning (31%). This is a
further indication that organisations see cloud as a core component to
effectively enabling these next-generation technologies.
The ‘From Cloud Migration
to Digital Innovation’ report, which surveyed 200 UK IT decision
makers, cites reduced cost (61%), improved speed of delivery (57%), and
increased IT security (52%) as the main reasons for organisations to move to
the cloud. However, 90% of respondents admitted that cloud migration had been
delayed in their organisation due to one or more unforeseen factors. Issues
such as cost (39%), workload and application re-architecting (38%), security
concerns (37%), and skills shortages (35%) all point to a process that is more
complicated than expected.
“Cloud adoption is a critical foundational step towards opening up real
transformative opportunities offered by cloud-native technologies and emerging
digital platforms and services. While some forward-thinking organisations are able to keep their eye on
the goal, the complexity of the migration and application modernisation process
tends to introduce delays and cost-implications that slow down progress,” said
Wasif Afghan, head of Cloud and Platform at Capita’s Technology Solutions
division.
A more
complex and costly migration than expected
On average,
those businesses asked had migrated 45% of their workloads and applications to
the cloud. However, this did correlate to organisation size as organisations
with more than 5,000 employees have further to go, with less than a third (31%)
of workloads and applications migrated. This could be the result of having
larger, more complicated systems.
Nearly half
(43%) of respondents found security to be one of the greatest challenges they
had faced during their migration. A lack of internal skills (34%), gaining
budget approval (32%), and progressing legacy migration solutions (32%) were
other significant challenges organisations had faced.
In fact, half
of respondents found their organisation had to ‘rearchitect’ more workloads and
optimise them for the cloud than they had expected. Further, only just over a
quarter (27%) found that labour/logistical costs have decreased – a key driver
for moving to the cloud in the first place.
“Every migration journey
is unique in both its destination and starting point. While some organisations
are either ‘born in the cloud’ or can gather the resources to transform in a
relatively short space of time, the majority will have a much slower, more
complex path. Many larger organisations that have been established for a long
time will have heritage IT systems and traditional processes that can’t simply
be lifted and shifted to the cloud straight away due to commercial or technical
reasons, meaning a hybrid IT approach is often required. Many organisations
haven’t yet fully explored how they can make hybrid work for them, combining
the benefits of newer cloud services whilst operating and optimising their
heritage IT estate,” said Afghan.
A platform
for innovation
Despite some of
the challenges outlined in the report, the majority (86%) of respondents agree
that the benefits of cloud are compelling enough to outweigh its downsides. For
more than three-quarters (76%) of organisations, moving to the cloud has driven
an improvement in IT service levels, while two-thirds (67%) report that cloud
has proven more secure than on-premise.
Overall,
three-quarters of organisations claimed to be satisfied with their cloud
migrations. However, only 16% were ‘extremely satisfied’ – indicating
that most organisations have not yet seen the full benefits or transformative
potential of their cloud investments. In addition, 42% of respondents currently
believe that cloud had ‘overpromised and underdelivered’.
“It’s no longer enough to think
of cloud as simply a way to benefit from initial cost savings or just another
place to store applications and data. Today, the move to cloud is driving a
spirit of innovation right across the enterprise, paving the way for advanced
digital services to be rolled out in a highly accessible, faster and more
cost-effective way – whether that’s AI, RPA, complex data analytics or machine
learning. Only through the alignment of IT and lines of business leadership –
in terms of goals, vision, direction and mindset – can organisations fully unleash the potential of cloud to
address their key business objectives, whether that is improving business
agility, delivering an enhanced customer experience or enhancing business
efficiencies.” said Afghan.
Mike Dargan, Group CIO of UBS, the world’s largest wealth manager discusses how UBS is shifting its digital strategy and…
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Mike Dargan, Group CIO of UBS, the world’s largest wealth manager discusses how UBS is shifting its digital strategy and transforming itself into a truly digital bank through agile transformation, engineering culture and how this is changing the way UBS is delivering technology for its clients.
Can you tell
me a little bit about what’s been going on within UBS’s technology division
when it comes to that shifting of team culture?
At UBS, the focus on the culture of our
technology team has been something that’s really been huge. We see culture as the
platform on which we ultimately do everything else. If we have the right
culture, we can deliver on strategy, we can innovate, we can execute. We can
therefore deliver great products and services for our stakeholders, and
therefore for our clients. Like any platform culture needs to be tweaked,
maintained.
What kind of
challenges come from cultural shifts? No two people will respond the same way
to any form of change, so how do you factor that into this transformation?
In some ways I wouldn’t call it a transformation. I think culture is something
that is precious. The culture at UBS is good and special, but I think we’d
always look to evolve a culture. So what we’ve done over the last couple of
years is we’ve stepped up the focus on our engineers. So we’ve designed
programs to raise that profile within firm. We’ve developed a technical career
track. We’ve given them much more responsibility.
g)
How does
that approach tie into a wider vision of UBS becoming something of an
engineering powerhouse?
We’ve launched a Distinguished Engineer Program.
It has three levels, distinguished engineers, distinguished fellows, and then
certified engineers, which really lets engineers progress along a technical
career path, if you like, rather than a managerial one.
It also recognizes technical achievements with
things like badges. In the first 24 hours of launch we were really overwhelmed
by the demands. We had 600 people register on the first day, and things like
that show us that there is massive demand by our engineering talent and that
they want to focus on building things and solving problems.
Technology at UBS is critically important. It’s
a very large part of UBS overall. Now the core of UBS is and will continue to
be banking, but I think banking will transform more and more to be digital
interaction, technology enabled, et cetera. So the importance and power of what
the engineers do directly and in the background will become more and more
important.
What does
agile mean to you, and what kind of things are you doing to take this agile
approach?
In some ways, I dislike the word, but in some
ways, I love the word. So we need to, as an organization move more and more to
being agile. But what does that mean? We want to have expedited delivery done
in combination with our partners and really having teams of engineers sit with
business product owners and really drive things together. So they need to sit
together under a shared vision for that product, understand the same challenges
and opportunities and then build the best possible solution for our clients.
Now, we’re doing that in different ways. In the
investment bank we’ve got hybrid pods, which is a model that puts
co-development with business and technology together. And really, I mean I
think the way this has been launched is pretty cool. So it does away with the
concept of us in tech and them in the business, but it’s really about shared
ownership to deliver products. It’s working. Teams are happier, outcomes are
better, new products are emerging faster and driven improvements are happening
effectively all the time.
In the digital factories, which we have across the globe, these are really well established across a lot of industries, but we’re seeing a lot of success with the adoption of this model in wealth management. And the proof point is, we’ve done almost a hundred thousand releases to prod through this year, which is over 10% more than last year. So we are getting more done, better, faster, cheaper.
Group CIO, UBS, Mike Dargan
I understand
that UBS took part in a hackathon event, can tell me what exactly a hackathon
is?
The hackathon here at UBS had a little over 600
global participants as people coming together over a very short time period,
focusing on the solution, bringing the solution together, spinning up a
solution overall. Now these are done in different industries, different
environments. They can be done for hiring, they can be done for just cracking
up a solution. But these are something that I think is a really cool way to get
people focused, involved, and bring that culture, if you like, almost back to
the day to day.
How are you
working to empower your workforce and prepare for the future workforce of UBS?
the most important piece around a culture is how
it evolves and how people learn and adapt. Now that I think it’s important
almost at any age. Empowerment I think is increasingly important.
We are due to see a lot of change powered by
technology within banking overall. I mean, we’re seeing it in all areas. The
banking landscape is evolving fast and we need to make sure that our digital
strategy enables us to stay competitive.
I think the onus for every individual, for every
leader, for every participant is evolving and learning. So I think there are
many aspects where the industry will change. There are many aspects we know
about, there are many aspects we don’t know about. There will be new
technologies and/or ways to use those technologies. So I think it’s also, you
know, not to get too buzzwordy, but being very nimble and flexible is the most
important.
On a
personal and professional level, how do you continuously challenge yourself and
challenge your way of thinking so that you stay ahead of the changes in the
market?
I’m lucky and privileged that I get to meet many
people. I get to listen to many people and learn from many people, both within
UBS and in the broader market. So I think recently we’ve been obviously hiring
a number of people who have brought in new perspectives and expertise. There’s
a whole bunch of people within UBS who I think day to day bring in that
expertise from what they do, and what they do day to day, as well as market
participants that we meet
What do you
think is the key to achieving success in a transformation?
I think there’s really two parts. The first is
be curious. Find out what you can learn, what you can experience, what you can
do or you can question about how you operate and how others operate and how you
can bring that into what you do. And the second, and I give this advice a lot,
is to understand how do you continue to be a better version of yourself? Not
someone else, but yourself. Challenge yourself to question how you can
continually self-improve the person you are, and the one you want to be.
Our cover story this month features an exclusive interview with Jon Davis, CTO of Village Hotel Club, who reveals how a digital transformation future-proofs a technology infrastructure. Village Hotels is currently undergoing a major digital transformation journey in order to better serve the modern guest and offer a digital ready experience like no other. Village Hotel Club operates 30 hotels across the UK and by its own admission, its hotels are “much more than a bed for the night – they are a place to meet, socialise, work and get fit” – a clear sign that the business understands that the guest experience has changed massively.
We also have a revealing interview with Bill
Barry, Vice President of Procurement and Sourcing at Access, one of the fastest
growing paper and digital
document services and storage providers in the world. Barry, upon joining the
company in 2018, was tasked with a vision of building out a best-in-class
sourcing and procurement function, developing and implementing the policies and
procedures in order to achieve that vision.
Elsewhere, we catch up with UBS CIO Mike Dargan
and Carlo Aquilina, CIO of Maltese construction giant Vassallo Group. Plus, we
list all the top events and conferences from around the world and highlight five
top tech innovators to look out for in 2020.
Peltarion, leading AI innovator and creator of an operational deep learning platform, today announced the findings of a survey of…
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Peltarion, leading AI innovator and creator of an operational deep learning platform, today announced the findings of a survey of AI decision-makers examining what they see as the impact of the skills shortage, and suggestions on how to overcome it. The research, ‘AI Decision-Makers Report: The human factor behind deep learning’, presents the findings of a survey of 350 IT leaders in the UK and Nordics with direct responsibility for shepherding AI at companies with more than 1,000 employees.
The
report finds that many AI decision-makers are concerned about the business
impact of the deep learning skills shortage. 84% of respondents said their
company leaders worry about the business risks of not investing in deep
learning, with 83% saying that a lack of deep learning skills is already
impacting their ability to compete in the market. These companies are exclusively
focusing on recruiting data scientists (71% of AI decision-makers are actively
recruiting to plug the deep learning skills gap), and this is already impacting
their ability to progress with AI projects:
Almost half (49%) say the skills shortage is causing delays to projects
44% believe the need for specialist skills is a major barrier to further investment in deep learning
However, almost half (45%) say they are struggling to hire because they don’t have a mature AI program already in place
“This
report shows that companies can’t afford to wait for data science talent to
come to them to progress their AI projects. The fact is, many organisations are
already starting to lose their competitive edge by waiting for specialised data
scientists. The current approach, which relies on hiring an isolated team of
data scientists to work on deep learning projects, is delaying projects and
putting strain on the talent companies do have,” explains Luka Crnkovic-Friis,
Co-Founder and CEO at Peltarion. “In order to solve the deep learning skills
gap, we need to make use of transferrable talent that can be found right under
companies’ noses. Deep learning will only reach its true potential if we get
more people from different areas of the business using it, taking pressure off
data scientists and allowing projects to progress.”
Less
than half (48%) of respondents said they currently employ data scientists who
can create deep learning models, compared to 94% that have data scientists who
can create other machine learning models. This shortage is having a direct
impact on teams: 93% of AI decision-makers say their data scientists are
over-worked to some extent because they believe there is no one else who can
share the workload. However, with the right tools, others can make a serious
impact on AI projects.
“Organisations
need to move projects forward by bringing on existing domain experts and
investing in tools that will help them input into AI projects. This will reduce
the strain on data scientists and lower deep learning’s barrier to
entry,” concludes Crnkovic-Friis. “We need to make deep learning more
affordable and accessible to all by reducing its complexity. By
operationalising deep learning to make it more scalable, affordable and
understandable, organisations can put themselves on the fast track and use deep
learning to optimise processes, create new products and add direct value to the
business.”
Companies undergoing digital transformation need to map out the path. Responsibility for driving digital transformation across the enterprise lies with the C-suite. The CEO, chief marketing officer (CMO), chief human resources officer (CHRO) and chief operations officer (COO), among others, must work together to make the transformation happen. However, this can be difficult to achieve as certain members of the C-Suite are more proficient with technology than others. This article will look at how to overcome resistance/challenges at a senior level to any digital transformation strategy.
I find the interesting aspect of the rapid development in technology is
that it has little to do with ‘digital’ but it is instead fundamentally driving
businesses away from linear based workflows to neural programs where all parts
are interconnected.
The challenge for any business embarking on a digital transformation
project is moving away from a business culture where siloed work streams could
deliver their parts of the project at specific points in a pre-ordained project
plan. This would be mapped out using
project management techniques such as the use of visual Gantt charts which gave
clarity over the breakdown of every item required for delivery within a
transformational project with the business owner and/or team members expected
to deliver this portion of the plan at specific times.
Digital transformation has taken this well-worn methodology and crumpled
it into a ball and created change where nothing can be done in isolation and
every action has consequences on all areas of business. The result of consumers becoming ever closer
to brands and brands striving for authenticity and purpose to deliver to their
consumers means production, sales, marketing, technology, finance, human
resources and any other function within a business all need to deliver with
‘joined up thinking’ or in real terms, the same focus and goals.
As such, companies have realised that their
processes, their products and even the reason for their entire existence needs
to change in order to survive this revolution. However, the C-suite are
struggling to adapt because this isn’t a clearly defined problem and there
isn’t a historical precedent to follow.
So, what does this mean for those C-Suite executives who had their
fiefdom, where they, with their teams controlled and implemented the strategy
in order to deliver the objectives of their sphere which would feed into the
wider business objectives?
In days of old, a business problem would have
been identified and a decision would be made to implement a technological
solution. With the recommendation
approved, the C suite, usually the Chief Technology Officer, would be tasked to
deliver the project. This suited all the
C suite members as it meant that the expertise of each member of the executive
were clear and there was a clear delineation between their roles and
responsibilities.
Now any change or decision has consequences that affects other areas of
the business and similar change in other areas of the business affects
them. The fourth revolution has bought
the historical business divisions closer together, technology has meant that
when discussing strategy or plans, the decision makers need to understand the
effect across all areas of the business.
Every business needs to operate as a single collective, it could be said
they need to operate with a start-up mentality, with entrepreneurial spirit
where the focus is the end goal not immersed in the process to achieve it.
The business needs to have that drive where everyone is focussed on the
overall strategy and interested in delivering it together for the benefit of
the business, not for the benefit of their specific expertise.
The C-Suite need to understand this doesn’t mean they need to know the
answers or become far reaching experts in areas they have limited to no
knowledge of. They have to have their
personal goals aligned with the right questions and be open minded to
understand their responsibility as leaders is to create the environment where
the people within the business can deliver for the success of the business not
for the betterment of the division they are part of.
This moves the discussion at a C Suite level
away from a technological based discussion, away from a place where there might
be reticence due to an individual’s relationship with technology to either be
part of the discussion or even worse, not commit to their viewpoints as they
defer to other who they view as experts.
It moves the transformation away from digital to strategic.
But digital transformation is nothing to do
with the build and delivery of the systems, it is nothing to do with the
evolution of the business processes to work with the new transformed business, but
it is everything to do with the strategic path that the company needs to
take in this new era.
The fourth industrial revolution, where change
is happening at an ever increasing pace, requires the C Suite to have a clear
understanding of critical milestones from a business perspective, with
diversity of business views based on expertise and experience, to ensure large
scale digital transformation programs stay on track to deliver the requirements
to deliver the survival, growth and success of their business.
Now in its eighth year, the Tech Trailblazers Awards, the first independent and dedicated awards program for enterprise information technology…
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Now in its eighth year, the
Tech Trailblazers Awards, the
first independent and dedicated awards program for enterprise information
technology startups, has revealed its shortlist of the most innovative entrants
and concepts in enterprise technology. The shortlists, selected by the Tech
Trailblazers’ panel of
leading IT industry experts, are now open to public vote to add to the
opinions of the judging panel and help determine the winners in all categories.
To view the shortlists, and
vote for your favourites, please visit http://www.techtrailblazers.com/shortlist
before 23.59 Pacific Time on Friday, 14th February 2020.
Tech Trailblazers Awards
comprises the best startups across a wide range of enterprise tech categories
including:
Artificial
Intelligence
Big Data
Blockchain
Cloud
Container
FinTech
IoT
Mobile
Security
Storage
Firestarter
Award
Female
Tech Trailblazer of the Year Award
Male
Tech Trailblazer of the Year Award
Rose Ross, founder of the Tech Trailblazers
Awards, said “Each year the judges are faced with the increasingly difficult
challenge of selecting shortlists in a wide range of tech categories from some
of the most innovative enterprise tech startups from around the world. Huge thanks
to our judges who, once again, have taken on this difficult task. The Tech
Tech Nation, the UK network for ambitious tech entrepreneurs, today reveals the 30 companies joining its prestigious Upscale programme for…
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Tech
Nation, the UK network for ambitious tech entrepreneurs, today reveals the 30
companies joining its prestigious Upscale programme for the UK’s most exciting
and fastest growing scaleup tech companies.
Now in
its fifth year, the Upscale 5.0 cohort reflects the maturity of the tech
landscape in the UK with considerable growth in key company statistics. Most of
the companies on the programme have already raised a Series A round, and the
average raise has increased from £4.2m in 2017, to £7.2m in 2020. Average
revenues have also increased by 64% from £1.1m to £1.8m over three years, while
the average number of employees when joining the cohort has grown by 48% from
31 to 46.
Some of
the biggest success stories of UK tech, such as Monzo, Bulb, Improbable and
Bloom & Wild, have been through the programme, and the 30 new companies
represent the next generation of digital household names.
This
cohort reflects just a small part of the UK tech scaleup ecosystem – in total,
there are almost 5,000 UK tech scaleups which add £17.2bn to the UK economy and
employs almost 200,000 people. UK scaleups outperformed their peers in 2019,
with companies raising £10.1bn, more than France (£3.8bn) and Germany (£5.4bn)
combined, and are spread right across the UK.
The
Upscale programme is designed to support the UK’s leading scaleups by tackling
the leadership challenge in UK tech. A recent report by Zenger/Folkman found that management and leadership skills are
lacking in just over half of all leadership teams, and organisations that
invest in developing leaders are 2.4 times more likely to hit their performance
targets and almost double their profits.
Upscale
sessions include addressing how to scale yourself as a leader, and how to scale
internationally. The programme aims to create a peer-to-peer network of
companies on their scaleup journey, and includes sessions led by tech
entrepreneurs from some of the UK’s most successful companies, including Nilan
Peiris, the VP of Growth at Transferwise and Will McInnes the CMO at
Brandwatch. Companies are selected through a judging process of tech
entrepreneurs and established VCs, including Anthony Fletcher, CEO of Graze and
Cherry Freeman, CEO, Lovecrafts as well as entrepreneurs who have gone through
the programme themselves, such as Aron Gelbard, CEO of London-based Bloom &
Wild.
30% of
companies joining the programme are from outside of London, and are based in:
Manchester, Cardiff, Cambridge, Leeds, Brighton, Belfast and Newcastle.
Companies hail from all different tech sub-sectors – showing the depth and
breadth of technology in the UK today. 17% of companies on the programme this
year are in the healthtech sector, 17% are in SaaS and 17% are in E-commerce.
Cloud computing, fintech, legaltech, AI, edtech, proptech, tech for good and
adtech are also represented on the programme. While E-commerce and SaaS are
evidently still pivotal to UK tech, the makeup of the programme also represents
the rise of companies applying technology to societal issues, including
healthtech, which has seen an increase in scaling companies of over 473% over
the last decade in the UK.
Nearly a quarter (24%) of UK IT companies believe their customers are less happy in January than any other month,…
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Nearly
a quarter (24%) of UK IT companies believe their customers are less happy in
January than any other month, according to new research.
The
survey, by quality assurance and improvement platform, EvaluAgent, also found that 24% of IT businesses
reported their lowest levels of customer service in January.
This
reflected the responses from tech sector customer service employees themselves,
with 43% confessing that their standard of service tends to drop around the New
Year and into January.
Worryingly,
the survey also revealed that 39% of customers have come to expect the customer
service they receive from companies to drop throughout December and January.
This annual slump in customer satisfaction can be directly linked to employee
engagement, which also falls in January.
According
to the report, 35% of IT businesses find their customer service employees are
unhappiest in January, while more than two fifths (43%) believe employees are
at their least engaged.
While
75% of customer service employees said they struggled to stay motivated
throughout the year, 40% admitted to January being their least productive
month, pointing to a huge opportunity for businesses to increase employee
motivation and customer service levels.
When
asked whether they thought their business could do more to increase staff
motivation during January, 91% of those surveyed agreed. This shows there’s
scope for employee engagement and motivation to be dramatically improved during
this crucial period, in turn driving higher-quality customer service.
Jaime
Scott, CEO and co-founder of EvaluAgent, commented: “It’s very clear from the
research that employee engagement takes a severe hit throughout January.
“This
can have a really damaging impact on employee performance and explains the low
levels of customer satisfaction reported by both businesses and their
customers.
“With
so many customers now having come to expect poor customer service levels in
January, there is a huge opportunity for businesses to break the mold and
properly motivate teams, improving customer service and gaining an advantage
over their competitors.”
It’s clear that technology is evolving across every business, allowing companies to become more productive and efficient. Computer systems, such…
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It’s clear that technology is evolving across every
business, allowing companies to become more productive and efficient.
Computer systems, such as CRMs and warehouse management
systems, can help you plan out your workload as efficiently as possible to
increase productivity of staff, while analytics allow you to judge what updates
are needed and when.
Bodysuits
It was announced in 2017 that line workers in the plant
would pilot exoskeleton suits — wearable technology that can help support a
worker’s arms while they undergo tasks above their heads. Ford’s Michigan plant
is also using innovative technological developments to help its workforce.
These suits can also be adjusted to support different weights, depending on the
wearer’s needs.
While such suits were more likely to appear on the big
screen in movies such as Iron Man
just a few years ago, the creation is having positive feedback from its users
in the real life world.
Printing techniques
In any manufacturing company, human error can be extremely
costly. That’s where 3D printing can come into play. While it’s still early
days for the technology, digital
printing has the potential to have a massive impact on practicality. It’s
expected that this invention will transform nearly every industry as it changes
how manufacturers will do business and will impact material costs, the
traditional assembly line and product pricing strategies.
They are particularly handy as automated printers, like
those used by Voodoo Manufacturing, don’t need to be manned anymore and can
continue working 24 hours a day. The use of robotics isn’t aimed at replacing
humans, but more so making employees’ jobs easier.
Drones
Drones can impact a company massively, saving almost 12
hours on each inspection and reducing the time it takes to check the equipment
from 12 hours to 12 minutes. Not only can drones provide a quick and thorough
inspection, but they eliminate the health and safety risk of someone needing to
scale up to 150 feet to look at gantries. They have started to use drones to
help perform risky inspections on the factory’s equipment in it’s Dagenham
engine plant. The company is benefitting massively,
Another advantage of drones is that they are particularly
good at providing the company with video and still footage that can be stored
to allow the plant to compare its findings over a period of time to monitor any
changes or patterns that are noticeable. This has become an indispensable tool
for the factory, with the drones greatly improving productivity and efficiency.
What does the future have in store?
The process of quality control can’t be too reliable, as
faulty parts may well be produced in a batch and slip through after the checks.
That’s why the ever-improving embedded metrology will continue to help
manufacturers produce a better product. This quick and convenient solution is a
lot more accurate and requires little human interference.
This process can traditionally be a very time-consuming and
expensive project. There would be randomly selected machine-made parts that
would be individually tested, and if they passed the test, the batch it came
from would be validated.
To summarise, it’s anticipated that this human aspect can be
removed completely, with technology helping to provide a fully integrated and
fully automated form of quality control. While some of the public are concerned
that jobs will be lost as it keeps progressing, it can only be a good thing for
manufacturing companies as it continues to help improve productivity and
efficiency. It will be interesting to see what we welcome to factories next!
Technology is continuing to amaze us in all walks of life.
The automotive industry is no different, either, taking
advantage of new inventions. It’s not only our cars that are benefitting from
technological advances, though — the manufacturing industry is, too. Lookers, who
offer a variety of cars such as the used Ford C Max, are
an example of this too!
New research suggests the UK is at risk of widespread ‘digital amnesia’, as it revealed 23 per cent of UK…
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New research suggests the UK
is at risk of widespread ‘digital amnesia’, as it revealed 23 per cent of UK
employees don’t know their own mobile phone number.
The research1 by
CRM specialist Capsule found more than two thirds (69 per cent) of workers
don’t know their partner’s number off by heart, whilst 63 per cent don’t know
their best friend’s birthday, and 73 per cent don’t know their booked holiday
dates without using tech to check.
Dependence on modern
technology to carry out everyday tasks in employees’ personal lives was further
highlighted in the survey, with two thirds (64 per cent) saying they rely on
tech for directions, 45 per cent for shopping, 39 per cent to access transport,
and 38 per cent for times and dates of events.
“In an increasingly digital
age, many people are using technology to store and access information instead
of memorising it,” said Duncan Stockdill, Capsule CEO.
“Those surveyed admitted that
they reach for their devices to carry out simple, basic tasks, such as maths
calculations and spelling.
“As technology has become
more connected, accessible and easy-to-use, we have become progressively more
reliant on it to help organise our lives and remember for us – giving rise to
‘digital amnesia’. Essentially, we are storing more information and
memories in the ‘cloud’, not our brains.
“With this in mind, it’s essential to trust the software you use and
ensure it keeps your data secure like enabling two step login and using strong,
unique passwords. We know passwords are easily forgotten though – around eight
per cent of our users reset their password each month. Tools like 1password are
useful as they’ll remember them all for you.”
According to the survey,
almost one in three (31 per cent) workers describe themselves as disorganised –
and 29 per cent said this has negatively impacted their performance at work,
such as missing deadlines and arriving late to meetings.
One in four (24 per cent)
have been late for appointments in the past 12 months, 23 per cent have missed
birthdays, 21 per cent have forgotten to pay bills, and 15 per cent double
booked or missed social events, respectively.
The link between technology
and being organised was clear from the research, with two-thirds (64 per cent)
of all respondents saying they use technology, such as online calendars,
digital to-do lists and reminders, to keep their lives in order.
Stockdill added: “There has
been a significant shift in how we function and operate, and the gulf between
the past and the future is set to become more pronounced as technology becomes
even more advanced.
“Reliance on tech is showing
no signs of slowing down and the business world needs to adapt to these changes
in order to stay ahead of the curve and help their employees reach their full
potential.
“Companies should consider
taking steps to ensure that their employees have the tools they need to support
well-organised and effective working practices.”
Capsule is a cloud-based Customer Relationship
Management (CRM) software platform. The system helps businesses stay
organised, in control of their sales process and build strong customer
relationships through its simple but powerful integrated solution.
1Research conducted among
2,000 permanently employed respondents
By Luca Ravazzolo, Product Manager, InterSystems The last year has seen a gradual evolution of DevOps as the approach has…
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By Luca Ravazzolo,
Product Manager, InterSystems
The last year has seen a gradual evolution of DevOps as the
approach has matured and continued to be adopted more widely. Since its
introduction, DevOps has changed mindsets, encouraging organisations to be more
agile and making concepts like continuous integration and continuous delivery more commonplace. A major
reason for the popularity of DevOps is that it allows organisations to capture
all processes in an auditable and replicable way. Further to this, it adapts
quickly, resulting in a low cost of change, and allows businesses to add cross-functionality
collaborations and results in working at a much higher speed.
Thanks to a similar
evolution in the cloud world, more intelligent tools are becoming available,
allowing developers to follow up DevOps processes with more discipline and
efficiency. This has led to the next iteration of DevOps: DevSecOps.
What is DevSecOps?
The issue of security is
one aspect of DevOps that, until recently, has been largely overlooked, often
due to the underlying pressure for the rapid creation of solutions and for
these to be deployed quickly. Consequently, this has meant that security hasn’t
always been a priority as including this at development stage hinders speed. Instead,
security tended to be retrofitted after a build – an approach that makes the
process more difficult. As developers and organisations have begun to realise
that this isn’t the most security-conscious or optimal way of going about it,
we are now seeing some integrate security into DevOps from the outset. This
approach means developers can alleviate any security issues at the time of
development.
Implementing DevSecOps
Currently, DevOps breaks
down any barriers between developers and operations teams, but adding security
into the picture requires there to be greater collaboration and
knowledge-sharing across the organisation. For DevSecOps to be successful,
developers and organisations must embrace a collaborative culture and recognise
that they require input from other individuals within the business with
different expertise. This requires organisations to adopt the right mindset in
which they realise the transformative power of security in the development of
solutions and collaborate with other departments. Traditionally, developers have
been focused purely on logic and algorithms, for example, and security is an
afterthought. So, if they are to embrace a DevSecOps approach, it is crucial to
involve security experts from the beginning and for the different parties to
collaborate on the development of solutions. By doing so it will be possible
for enterprises to create secure, stable and resilient solutions which will be
hugely beneficial for both the organisation and end-users.
Further to this, DevSecOps requires
continual security reviews covering everything from compliance monitoring for
PCI and GDPR to determining what the process is if security senses a threat.
Therefore, organisations should establish a review process from the moment they
think about architecting a new solution. Then they should also determine
processes for the ongoing monitoring and management of security as the code
progresses through every stage, from the developer desk to the building of the
solution and the testing of it. It’s also critical that developers receive
adequate training to ensure they are aware of security throughout the
development journey.
What’s next for DevOps?
While what the future may
hold for DevOps isn’t clear at this time, there are two prominent schools of
thought:
Firstly, it is thought
there could one day be NoOps. This is the idea that solutions will feature everything
they are required to from the outset, such as code standards, security,
libraries and legislation protocols, and that things will be completely automated,
therefore requiring people to just monitor and raise questions as they verify
the software. Technically, as everything would be automated within the software
provisioning pipeline, there would be no need for manual, human-based operations.
This could potentially guarantee a higher level of security and resilience as
everything would meet a particular standard.
The second prediction is
that instead of DevOps disappearing altogether, different types of Ops may be
developed. This could lead to the emergence of MLOps to form a machine
learning-driven operation that would be able to certify the standards that
organisations want software to be written with and even flag issues with it.
As demonstrated by the
introduction of DevSecOps, the evolution of DevOps is underway. In time, this
is likely to mean that DevOps will begin to encompass new technologies and multiple
aspects of building a new solution. Eventually, this will lead to all of the
requirements of development being brought together and an increase in
collaboration across departments. Ultimately, the end result will be new
solutions that meet the required standards and security from the outset.
Withers tech, working with experienced VC legal teams in France, Germany and Switzerland, has carried out the first analysis of…
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Withers tech, working with experienced VC legal teams in France, Germany and Switzerland, has carried out the first analysis of how venture capital deals are structured across Europe. The survey has identified that with more similarities than differences in deal structures between the jurisdictions, investors should have confidence about embarking on cross-border transactions.
Withers tech worked with Schnittker Möllmann Partners (SMP) in Germany, Viguié Schmidt & Associés in France and Wenger & Vieli in Switzerland to analyse active Series A deal terms used in each jurisdiction. The research identified 53 separate terms, which can be condensed into 14 key deal terms covering the categories of economic, control, and reps, warranties and remedies.
These three categories centre around future financing; exits and IPO to control terms like founders’ vesting, founders’ non-compete/solicitation; veto-rights; and control over the group of shareholders across the four jurisdictions. Any differences in these areas can often be accounted for by the different systems of Civil (France, Germany and Switzerland) and Common law jurisdictions (UK), which still remain key considerations.
James Shaw, head of Withers tech, comments: “The most significant message this survey sends is that we all speak largely the same language when it comes to transactions and legal documentation, so investors should have confidence in deploying capital across borders, particularly in these tech-savvy jurisdictions.”
“Of course, care and expert advice is still required though, as the difference between Common and Civil law approaches to deals can cause issues. In particular, governance structures in the UK are likely to differ from other European practices, including the structure and authority of different functions on company’s boards.”
“We decided to undertake this review due to the growing volume of cross-border tech VC deals within Europe. In addition, given the large volume of overseas capital looking to invest in European tech start-ups, we also felt it would be useful to explain the nuances of these four key jurisdictions to help overseas investors better understand the risks in each jurisdiction. Our next aim is to expand this review into other tech-active European jurisdictions.”
A copy of the report, including discussion of the 14 key deal terms found across all four jurisdictions, can be found here and all 53 deal terms are set out here.
By Alistair Laycock, Custom Solutions Director at Haulmont ‘Digital transformation’ has an obvious appeal. Invest in a technological solution that…
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By Alistair Laycock, Custom Solutions Director at Haulmont
‘Digital transformation’ has an obvious appeal. Invest in a technological solution that has the potential to streamline your business’s operations, reduce costs, and ultimately widen profit margins. What’s more, when your competitors are undergoing such a transformation, the pressure to invest in a solution to avoid being left behind is significant.
However, more so than the technology, and even the choice of technology partner, the main priority for business leaders looking to undergo a successful digital transformation can be found internally. In a word, it’s culture.
Many continue to invest in one-off, off the shelf solutions without putting technology at the heart of their business; a company whose board is open to consider and push technological change will be the one that separates itself from the pack.
People, partners and pilots
While throwing caution to the wind is the right approach, you needn’t strip out your legacy systems overnight. Before the implementation of new technology comes selecting the technology partner to deliver on the vision, and the right choice is paramount to achieving a successful digital transformation.
When choosing a tech vendor to deliver a digital transformation project, ensure that your business’s cultures are aligned. Their ambition, communication style, attention to detail and proactivity are all key indicators, and it’s paramount that you ensure that your team can work smoothly with theirs. In the worst-case scenarios, miscommunication on deliverables and expectations leads to an increase in costs and a poor end product, undermining your original objectives.
Do also plan for the future. The right technology partner will offer more than one solution, with alternatives proactively proposed in the long term. Propose that you begin by investing in a small project first. A pilot project – that is still bespoke and easier to develop – allows your potential technology partner to prove they understand your objectives and can quickly develop an appropriate solution. Critically, it also allows you to test the profitability of the solution and whether its success can be replicated at a greater scale.
A successful pilot project provides the basis to scale operations, including the replacement of legacy systems, safer in the knowledge that the new solutions will pay dividends. The final step is to work with your partner to carefully and methodically plan the implementation of these new systems.
Becoming a technology-first company
Once you’re settled with your partner, it’s paramount that you maintain the same risk tolerance that led you to this position; technology is a continuous solution, not a one-off investment. With new technologies come potential new customers – each with their own needs – and various new data points from which you can derive greater insight. To fully take advantage of this, be sure to invest in your staff. Look to retrain existing staff or employ a network of universally tech-skilled staff who are able to work in tandem with your technology partner, assess your own internal technology, and make suggestions on what other technological improvements would best serve the business moving forward.
When it comes to recruitment, don’t be afraid to invest in youth. A recent report* suggests that 73% of B2B tech buying committee members are millennials, while under-35s make up 40% of those making the final decisions on technology purchases.
Analysing the data is key in ensuring continuous success; it’ll tell you what to automate, what to cull, and where there’s scope for growth. Getting this right will ensure reduced costs and increased growth and revenue.
Tangible impact
At Haulmont, we’ve worked with various partners to assist in a range of digital transformation projects. The Keyholding Company, providers of keyholding and alarm response services, is a prime example of embracing change and thriving as a result. Answer times have reduced drastically, their entire service has been streamlined, and in the last year alone costs of sales are down 10%, while business growth is up by 15%.
The company has evolved from its specialism in security and is now a technology company first, with 98% of its 500,000 jobs each year handled by automation; previously, a human used to touch every job. As a partner, we’ve become an extension of the business, but it’s something that wouldn’t have been possible without the forward-thinking and risk tolerant approach adopted at the outset.
The right technology is important. The right technology partner is important. But the success of a project is at risk if the teams delivering on objectives are not on the same page. A willingness to embrace change must trickle down from the top if a digital transformation is to be truly transformative.
Retailers know how important the customer experience is – and this can’t be forgotten around the busiest shopping period of…
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Retailers know how important the customer experience is – and
this can’t be forgotten around the busiest shopping period of the year. In
fact, in 2018 UK shoppers spent £4.75billion in Boxing Day sales and £1.4
billion on the last Saturday before Christmas, known as ‘Super Saturday.’ With research showing
that improving the customer experience and investing in new ways to engage
customers is critical to the ongoing success of retailers, the retailers who
are able to create a seamless, convenient experience for customers will have
the upper hand. To do this effectively, they’ll need to bring together physical
and digital while offering an amazing product selection that’s readily
available and can be delivered fast.
Philip
Hall, Managing Director Europe at CommerceHub, shares his top three tips to give
retailers an advantage during this year’s peak shopping season.
1.
Embrace the Physical and Digital for More Consumer Convenience
With the
adoption of cloud-based software and smart mobile devices, retailers’ ability
to connect their physical and digital presence has become significantly easier,
as shown by the rise of click and collect and more return options. Every
consumer has a different purchasing pattern – which is largely driven by
convenience – meaning that retailers need to focus on having the right products
in the right places.
Because
convenience plays a large role in customer satisfaction, retailers need to take
action. According to a recent survey, 68% of consumers said they preferred
click and collect when making purchases. When consumers elect to pick up their
purchases in-store, retailers are not only able to reduce their shipping costs,
but also to sell even more product, as 85% of these consumers tend to make
additional purchases once they come in-store to retrieve their orders –
something that could easily feed into holiday sale buzz.
2. Put
an End to Cancelled and Out of Stock Messages
“Right time,
right place” in today’s consumer speak actually means “right here, right now,”
– something that is only becoming more ingrained in retailers’ strategies. It’s
not uncommon for consumers to have experienced the frustration of hopping
online to purchase the perfect gift and getting hit with the “out of stock”
message – a challenge that typically ends in an abandoned cart and searching
for the product elsewhere.
Retailers stand
to miss out on nearly $1 trillion in sales because they
don’t have what customers want to buy. And while this problem stirs agitation
and causes stress for consumers, it is something that retailers can easily
avoid with the right approach. By tapping into virtual inventory enabled
through drop shipping and executing on proper resource planning and logistics
execution, retailers could potentially have no sell outs at all, enabling them
to keep customers happy and maintain their brand promise. And some retailers
are already recognising the potential, with research from CommerceHub showing that
46% of retailers value the fast shipping and delivery of drop shipping and over
a third acknowledging the better customer experience drop shipping will bring.
3. Meet
and Exceed Delivery Expectations
A final key to
success as we enter the UK’s busiest shopping period will be perfecting
shipping and delivery. Gone are the days when getting packages a week or longer
after an order is placed is acceptable. New and improving technology is giving
retailers the ability to strategically expand product ranges, fulfil
orders faster than ever before and track deliveries to better meet customer
needs and expectations. By implementing these advanced back-end processes,
communications between retailers and fulfilment/shipping centres have never
been more seamless.
Technology is
also giving retailers more visibility into fulfilment processes, which is
enabling them to create routine efficiencies and capture data to drive their
businesses forward year after year. What’s more, these insights can help drive
real-time decision making, allowing retailers to keep consumers aware of the
status of their orders and stay ahead of delays in ways that couldn’t be
managed before, which supports retailers’ growing need to stay ahead of customer
expectations.
Conclusion
Retailers need
to ensure that the customer, and their satisfaction, is at the core of every
strategy – especially in the coming months when the sales potential is so high.
Whether it is a newly implemented or enhanced approach, a retailer’s ability to
carry out a seamless crossover between physical and digital retail, minimise
out-of-stock cancels and meet and exceed delivery expectations is essential to
their success. And with this success comes happy customers, who in turn, will
only be coming back for more.
By Joonas Jantunen, CEO Cloudia Middle East & Africa, Cloudia. Former Hewlett-Packard CEO, Lew Platt, once famously said: “If HP knew…
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By Joonas Jantunen, CEO Cloudia Middle East & Africa, Cloudia.
Former Hewlett-Packard CEO, Lew Platt, once famously said: “If HP knew what HP knows, we’d be three times more productive.”
Managing
knowledge, or knowing what you know, and being able to apply it to core
decision-making is key to business success now and in the future. In
procurement, knowledge management already has the potential to drive
productivity gains across the business. And emerging technologies like AI and
RPA look set to play an outsized role.
What do we mean by knowledge management?
Every day, every
moment, organisations and their operating environments are creating, using and
sharing, huge amounts of information, or knowledge. Knowledge management, most
simply put, refers to the process of collecting, maintaining and managing
everything that a company ‘knows,’ in all
its forms. But knowledge management is also about using that knowledge to help
leaders make more informed decisions. In this article, we are considering
knowledge management in this wider sense.
In any
organisation, knowledge is power but only when it is well managed and usefully
applied. In procurement, knowledge becomes power when it’s effectively managed for the
purpose of driving decision-making. That means, identifying what information is
critical to operations, analysing it, then sharing the findings with key
decision-makers across the company.
What does this mean in practice for procurement?
In procurement
today, knowledge management typically begins with process automation, aimed at
reducing routine administrative work and freeing up procurement people to focus
on innovation and productivity. Automation also equips organisations with the
capacity to adapt and take advantage of new technologies as they develop.
The vast
majority of data management applications currently available focus on storing
and presenting historical data – telling us ‘what
happened’. Naturally,
it’s important to know
about past events to aid future management strategy, but all too often the data
analysis and interpretation itself is left entirely to humans, with our limited
capacity for processing large amounts of information. Also, it’s not possible to effectively exploit
even the most basic historical data in practice unless the organisation’s
procurement systems and processes have been digitised, and an adequate amount
of historical data accumulated.
Emerging technologies assist knowledge management in
multiple ways
When artificial
intelligence (AI) is mentioned, often the first thing that comes to mind is
robots making decisions on our behalf or undertaking roles previously performed
by humans. Indeed, it has been predicted that robots are likely to replace many
service-sector jobs, among other things. However, it’s worth remembering that predictions are based
on assumptions of what might happen in terms of
advances in AI and it’s
challenging to predict the pace at which these advances would take place.
In the short
term, the situation looks less exciting. At the moment, the most significant
strength of AI is its ability to handle huge amounts of data from various
sources and to establish links among different factors. Another remarkable
aspect of AI is the speed at which it is able to identify and produce text,
sound and image. As it stands, AI is best suited for optimising existing
processes and behavioural models on which an organisation already has plenty of
high-quality data.
AI helps manage, cultivate and discover procurement
knowledge
AI and its
various applications, especially robotic process automation (RPA), can
significantly speed up data collection and assembly. In addition to the
information that’s
entered into the system and generated during the daily procurement activities,
RPA is also able to cultivate new information. Useful information can be
gathered about various relevant factors, such as the market, operating
environments, pricing, currency fluctuations, any changes to contracts or
suppliers, as well as other operators or events within the same business
sector.
With the help of
automation, the data can be assembled, categorised according to context, and merged and stored
without human interference. As a result,
the process of data discovery will be significantly quicker and more
straightforward. Technology can also be harnessed to keep different levels of
management up-to-date with the latest information regarding, for example,
various organisational
units, or changes to contracts or consignments. As a result, management will
always have access to real-time knowledge of any breaches of contract or
disruptions in the supply chain.
The next level
of knowledge management is reached when technology is exploited to help
understand the causes of events and certain behaviours. Diagnostic analytics
examines data or content to answer the question ‘Why did this happen?’. When there is a better understanding of what
happened, information can be used to find and detect a variety of recurring
formulas and patterns, which help control and redirect operations more
accurately.
For example, if
the same suppliers always succeed or fail to fulfil the terms and conditions of
specific product categories, the valuable information provided by diagnostic
analytics can help target investment toward the most reliable suppliers.
Similarly, understanding the changes in supply and demand, under certain
conditions in different product categories, will help schedule the procurement
process more efficiently. Diverse procurement procedures and market
fluctuations have an impact on the price level of bids, but by analysing trends
and past events, it is possible to get both the procedure and the timing right.
Predictive analytics explains what’s going to
happen
Any organisation wishing to succeed needs to
have foresight. Predictive analytics is a level up from analysing the past, as
the focus is on developing and automating forecasts and probabilities based on
current events. Those in charge of procurement can use the knowledge to predict
and prepare for various outcomes and direct their actions accordingly.
Once the
analytics has discovered why something happened, it will be able to draw
conclusions and predictions about what is going to happen next. As an example,
it’s possible to
predict that when certain changes occur on the market, certain suppliers will
perform better (or worse) in relation to certain contractual terms, or if the
price or availability of a certain product category is projected to reduce.
Prescriptive analytics explains what should be
happening
A high level of
procurement knowledge management is achieved when technology can be employed to
tell what should be done next. AI and its various applications can efficiently
simulate human behaviour and learn to make draft measures and proposals based
on predictions. Even the decision-making process can be fully automated with
the help of various approval stages.
Based on facts
and probability-weighted projections, the system can give recommendations to
management about different areas of procurement. For example, it might be
advised to avoid certain suppliers at certain times of the year due to
projected shortages in supply, or to order extra goods in advance to prevent
stock from being exhausted.
Choose an experienced and competent partner
AI is a very
useful tool for optimising performance and streamlining processes where the
cost of human error can be high. In order to make the best use of technology in
procurement knowledge management, it’s essential to be able to identify and collect the type of data that
matters most to your organisation. Since the projections and recommendations are based on existing
data, the sooner the process of data collection and storage in your organisation commences, the better.
John Rossman, managing partner at Rosman Partners, explores the concept of digital transformation and his book Think Like Amazon. With…
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John Rossman, managing partner at Rosman Partners, explores the concept of digital transformation and his book Think Like Amazon. With companies constantly referring to the Amazon effect, John calls upon his time working with Amazon to lay out 50 and a half ideas that businesses and organizations should consider as they look to transform their operations, embrace innovation, and enter the next era of business. By Dale Benton
Talk us through your career and your work with Amazon
In the 2000s, I had the opportunity to be a leader at Amazon. I got to launch the Marketplace business at Amazon so that’s third-party selling at Amazon.com. Today that’s 58% of all units shipped and sold are through that platform. And then I also ran the enterprise business where we ran other large retailers’ e-commerce infrastructure for them. That included target.com, ToysRUs, Marks & Spencer in the UK, and a number of other great brands. I left Amazon in late 2005 and got into consulting, where I started to see the impact of all the strategies and tools and approaches we took at Amazon to get the types of results we did. I started to use those with my clients. Several years after I left, one of my clients at the Bill and Melinda Gates Foundation came to me and said, “John, I’ve seen how you put the little anecdotes and manoeuvres from Amazon into our business. It’s very impactful. I think you ought to write a book about it.” That’s what really started me down the path of writing the books. So, today I do a number of keynote speaking and advisory work where I work with leadership teams over a long period of time as an advisor to their team, and help others figure out their digital strategy. That’s been my career arc.
We hear about the Amazon effect, but you’ve been on the inside of that, can you give us your perspective?
I mean I was there from early 2002 through to late 2005. It was a fascinating period at Amazon because that’s really when we started to develop the strategy of Amazon really being two types of businesses. One is a retailer, and the other is a platform company, and a platform company builds core capabilities that both Amazon and the retailer could use as well as third parties. So, we started to get super clear and work through our leadership principles, our approaches for how to operate as a platform company. It completely changed the way that I think about problem solving and about situations, and opportunities. I didn’t develop all of these techniques. I just paid attention in class, and it was really then through my repeated practice of inserting them into my client’s business at the appropriate point with the appropriate approach that really inspired me to write, Think Like Amazon, 50 and A Half Ideas To Become A Digital Leader. That was really my inspiration for the book; to pass on to others what all the little moves are that you can take from Amazon and put them into your business to help make change happen.
What does it mean to digitally transform? You’ve described it in your book as an introduction to mission impossible
I think part of the essence of being digital or digital transformation, is there are lots of good definitions. There’s no one right one. I believe that being digital is really the combination of two, what sounded like athletic attributes, but they’re really organisational attributes, which are speed and agility. So, if you think of what speed is, speed is about being able to do a repetitive motion extremely efficiently and extremely predictably. That’s really operational excellence, right? So on the one hand, being digital is about operational excellence in the relentless pursuit for driving out inefficiencies in the business, and for perfecting the customer experience. The other attribute of a digital organisation is agility, and agility is really the ability to both sense and make change happen, right? And that’s both small change and big change. So really, that’s the ability for an organisation to innovate within itself, right? So, it’s really that combination of speed and agility, operational excellence and systematic innovation that really makes a digital company. A lot of what I work with teams on, and speak to audiences about relates to being deliberate, right? In both your operational excellence and your innovation. Every leader would say that being innovative is critical to the success of their company going forward, but 95% actually don’t have a systematic approach for how that happens. It happens on an accidental or one-by-one basis. So much of the framing of this book and the ideas from Amazon are how to be planful and systematic in both your operational excellence and your innovation.
Is there a challenge of balancing the need to perform while transforming?
This isn’t about pausing what you’re doing now, but it really does set the basis. In fact, the first idea in the book is reset your clocks. Your journeys will not be a short or straight line. If I think about what’s the understated secret of Amazon’s success? Right? It’s a 25-year-old company now. There were the first 15 years of; it was struggling to survive and to make a name and a brand. It’s really just the past 10 years that this vortex of an organisation has come into being. So patience is, I think, an underlying and underappreciated skill set of leadership and management and boards. Amazon has forestalled and pushed out profitability in order to build the infrastructure, and to do these experiments, and to build their business, they’ve pushed out profitability. I think it is that addiction to quarterly profit results that creates the challenges in both being able to reinvent your business and deliver those quarterly results. Sometimes part of the journey is about reshaping how you’re taking profits and investing it into the business. You do have to invest in the business if you truly want to transform, and it’s not a predictable path, and it is certainly a long path. So, it’s almost irreconcilable to say, “I want to have fast transformation results,” right? Those things are almost irreconcilable. It’s oxymoronic in nature.
Is there still inherent risk averseness towards technology?
I think it’s actually because the technology is becoming simpler and easier to operate. Because the obvious need to innovate is becoming higher and everything, what’s being pushed to the forefront is a company’s capability of managing change. This gets to a big essence of the book, and in particular idea nine is called making the elephant dance: portfolio strategy and governance for innovation. It gets back to that observation which is most companies don’t have a deliberate systematic approach for innovation. This idea is just about one aspect of that systematic approach for innovation, which is about a portfolio strategy. A portfolio strategy just helps to understand and outline where are your investments going, and what type of risk versus return are you expecting across those. What most companies are good at is low risk, low reward types of projects and investments, right? Basically, if we execute well, we should have a return, but these are things that are not game changing types of endeavours. What most companies are not good at is the high risk, high reward types of investments, and this is really where you need to think big but bet small. You need to make these types of high risk, high reward investments as nimble and small and hypothesis-driven as possible. But just simply having a portfolio understanding of your investments is one key element for really understanding how am I making deliberate change in the organisation. And as your question tees up, technology is rarely the key challenge. The key challenge is in how we envision the future, how we run change initiatives in our organization, not just the technology component but the business model component, and the organizational change components to it, and the ecosystem and stakeholder management component to that. And those tend to be the things that get in the way of innovation.
With transformation comes a rebuilding of existing cultures and mindsets, what challenges does this present?
Idea number three is called move forward to get back to day one: change the culture of status quo. It really is about the essential awakening that leaders need, which is: are we playing offense? Are we about creating the future or are we about defence, and maintaining the status quo? Bezos frames this up by his quick little saying around we are a day one company. In one of his recent shareholder letters, he talks about what’s it mean to be a day one company versus a day two company? If you are a day two company, meaning you’re probably healthy, you’ve been around for a while, but you’re struggling with innovation and reinventing yourself, and you see some competitive threats coming from non-traditional competitors. He gives some advice relative to creating a day one culture, and some of that advice is about don’t manage through proxy. Proxy is those abstraction mechanisms that we put in place to help manage the business. Things like surveys and abstracted metrics. The key way to get away from that is understand the exact customer experience, have transactional metrics, and set a high bar relative to the perfect order, the perfect customer experience versus looking at it in an aggregate, and really about making sure that you’re dedicating time to work in the future. As a leadership team, we probably need to be more deliberate about working in the future. It’s amazing because people are not systematic about it. People and leaders hesitate to put time into actually working in the future. So, many of the ideas are about, ‘Whoa, what are the things I do to actually work in the future?’
What advice would you give to a company embarking on a digital transformation?
At the end of the day, it’s really about not the organisation transforming around me, but it’s about, well, what am I personally willing to do differently? What am I willing to learn? How am I willing to take on new practices, spend my time differently, prioritise my business results and my schedule, and my hiring practices too? What are you willing to do differently? What changes are you willing to take out of this and make happen as part of your personal habits?
Becki Hyde, Practice Lead, Agile Practice Leadership Enablement and Sean Olszewski, Practice Lead for Agile Practice Leadership Enablement, Pivotal Software…
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Becki Hyde, Practice Lead, Agile Practice Leadership Enablement and Sean Olszewski, Practice Lead for Agile Practice Leadership Enablement, Pivotal Software
The benefits of a successful digital transformation project will manifest across entire organisational structures: teams make and act upon decisions faster than they have in the past, products and services are being delivered to users faster, employee morale is on the rise, operational costs are decreasing, and legacy systems are being upgraded or retired far quicker than many in the business can keep pace with. However, once change gets into full swing, it’s typical to see some employees begin to question their roles in the company, or whether they want to remain at the company at all. Things are changing fast—technologies, processes, expectations—and that can make for a difficult adjustment. Understanding why employees feel the way they do is crucial–not just to keep great people, but as a gauge to understand if the business is transforming in the right way.
There are different types of people within an organisation that are at risk of becoming alienated or otherwise unhappy during transformation periods. Here are some traits to look out for and some advice for keeping those people not just around, but also happy.
Frustrated converts
The frustrated convert gets exposure to a new way of working and is then forced to go back to the old way – to what is often perceived as cumbersome process, wasted time, dead ends, and a lack of autonomy. These blockers often occur due to senior leadership being bought into an effort but failing to cascade the intent and importance of this to middle management. Because of this breakdown in communication, middle management doesn’t allow individual contributors the flexibility they need to deliver effectively, creating frustration and ultimately causing them to leave.
To prevent turnover of otherwise engaged and excited employees, work toward support for the change at all levels of your organisation and provide air cover until that is achieved. Having one or two key allies at the manager, director, and vice president levels goes a long way toward preventing converts from ever becoming frustrated. By knowing they have direct leadership support, employees will be able to weather the challenges of introducing change for much longer than if they feel they are doing it alone.
High achievers
High achievers are employees who thrive in an agile environment, becoming so effective at what they do that they begin to be courted by other companies, or seek promotion opportunities elsewhere. Time and time again, we see this issue come up as companies undergo change, and the strongest way to combat it is to have a strong, protected culture of learning, with a fair and competitive compensation structure.
But supporting high achievers isn’t just about salary and benefits. The most engaged and motivated participants in change can become disengaged if they aren’t given opportunities that align to their interests and professional development – and have a measurable impact on the business. After seeing success on their teams, some employees naturally want to spread the principles and practices they’ve become so passionate about. This gives them an opportunity to grow professionally, and to have a larger positive influence on company culture.
Opt-outs
When people are asked to change the way they work, some will self-select out. This is especially likely in companies where employees stay in roles long-term and develop well-understood processes over years of experience. Opt-outs don’t like or aren’t convinced of how effective this new way of working will be. It’s not uncommon for people to have seen many attempts at changing their enterprise and are therefore sceptical of further change.
As you introduce change, think ahead to how you can support these potential opt-outs. Opt-outs are normally better suited for work which isn’t related to the company’s digital transformation efforts, therefore change may in fact represent an opportunity to become involved in other areas of the business. They can however prove to be effective advisors in their area of expertise, or perhaps there are other teams in the company that could benefit from their experience and knowledge. Regardless, if you don’t consider these employees’ concerns and manage their transitions, they can poison others who are interested – but nervous about the change.
Graduates
Some of your best team members will get promoted, perhaps onto a different team or into a new business unit. On the surface this is good news, however, if people leave early, or several leave in quick succession, the team leading the change may struggle to maintain maturity and momentum in their absence.
Because it is important to keep teams intact until there are people ready to backfill leadership roles, start succession-planning early — even down to the individual team level. While you can encourage people to stay in place for a period of time by providing them with interesting work and fair compensation, preparing for the future early ensures your efforts won’t stall out. When you are ready for people to move on, consider planning for graduates to seed new teams in pairs or small groups, so that they can support one another and have greater influence on others.
Final thoughts
While high turnover feels alarming, it can be a good sign. It’s evidence that you’re effecting change. Instead of feeling powerless, proactively preparing for and guiding changes in staffing can keep your transformation on track. While you may not prevent people from leaving, you can learn valuable lessons from the reasons they leave, which you can then leverage into actionable insights that help you on your journey.
Jay Weintraub, founder and CEO of InsureTech Connect explores the digital transformation of insurance, and what makes InsureTech Connect the…
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Jay Weintraub, founder and CEO of InsureTech Connect explores the digital transformation of insurance, and what makes InsureTech Connect the largest, most focused and relevant gathering of insurance industry executives, entrepreneurs and investors in the world. By Dale Benton
Walk us through your career journey and how you
find yourself as Founder and CEO of InsureTech Connect?
In 2008, I launched an event
series for a subset of the Internet advertising space, and it was there that I first
got exposed to the world of insurance. Towards the end of 2015, I met Caribou
Honig, who was a fintech VC in search of an InsureTech conference, and that
meeting could have gone really poorly or really well, and I’m happy to say that
it went really, really well.
What is InsureTech Connect?
We are the world’s largest
event that discusses the digital transformation happening in the world of
insurance. Insurance is one of these remarkable worlds. It’s worth trillions of
dollars in annual premiums, it connects our lives, it enables us to do everything
that we do at this moment and yet it’s something that is sort of invisible and
behind the scenes. In the last four years, the world of insurance has seen,
this groundswell of activity by entrepreneurs who are looking at this big world
and saying, ‘Wait a second, why does it work the way that it does? There has to
be a better way.” It is these entrepreneurs, the investors that fund them
and the global incumbent insurance companies that all gather at InsureTech
Connect in Las Vegas.
As technology has become more advanced, how are
the conversations surrounding tech, different today than they were say, 10
years ago?
It’s amazing how much the
conversation has remained the same, it’s the channels that are different. When
we think about customer acquisition, there are certainly going to be broad
shifts in how companies acquire customers as the access to channels. We must
remember, the core of having a great product that appeals to people may change,
but it’s the core of having something worth telling that really hasn’t changed.
Is there a challenge in understanding, and
defining, what digital and digital transformation means to business?
It’s both a challenge and
opportunity and it is what makes being in InsureTech such a fun place to be
because is it talking about product lines. How do we use insurance in a new
way? How do we take a classic product, break it into a way that is better and
necessary but also helps consumers? Digital transformation is going to depend
on what product line you’re in, what part of the value chain you’re in and what
technologies you think can actually help you serve your customers better.
There’s an immense amount of parallel transformation taking place.
What do you feel are some of the key barriers
faced by insurance, in embracing innovation?
I would love for the answer
to be technology. If we think about in the early 2000s when e-commerce was
becoming a thing and people knew that they wanted to buy online, it still took
15 years before it became mainstream, and that was a technology issue. It was
because mobile phones weren’t computers, there wasn’t connectivity, the cloud
computing didn’t exist, so the ubiquity of what could be done wasn’t actually
there. Today, we have consumers that want things and we have technology that
gets it to them. It’s a fundamental culture change in a lot of cases, and
insurance has been more incremental in nature. It’s an industry that is
hundreds of years old and thinks in terms of hundreds of years versus any
short-term trend.
How do companies stay on top of the new consumer
demands so as not to fall behind competitors?
We have a couple of
assumptions. We are assuming that over time, if it can be sold online, it will
be. We assume over time that everything will be sold and written directly. The
challenge for any business is, what is that time horizon? Personal lines are vastly
consumed both directly and digitally, but commercial lines will one day be far
more direct than they are. It’s why small commercial concerns are such a hotbed
of innovation.
You think about the next
generation of small business owner, it’s going to be somebody that has grown up
with a phone, and so when they look to purchase their insurance, they’re going
to want to start digitally versus maybe how the previous generation turned to
an individual. When we’re looking at insurance, it’s about locating the pain
point? Is the product going to be sold digitally no matter what? Or is it
something that is still going to be sold through an individual, most likely
with an advisor. How do you enable that advisor to do their job better?
How difficult is it to balance, move forward and
embrace this next generation without turning your back on the existing previous
generations?
I don’t think it’s a pure
split. I think everybody wants to speak on the phone at a certain time, and I
would say that there’s an ever-growing comfort with people who are happy to
speak on the phone or not speak on the phone. We look at Facebook, right? It
went from being students only, to almost getting a backlash for it becoming the
playground of the parents and grandparents, and it shows the comfort of people
engaging with a mobile phone as a device for consuming and inputting
information.
I think about chatbots and
other forms of conversational AI, and it’s a case of understanding how it helps
you to make the experience better versus looking at it as just a, ‘Oh the young
kids, they want to engage with their phone.’ We have to say, what does it help
us do better, faster, and at scale? We have to look at these things for very
specific performance enhancers and then always have an escalation process
knowing that if there’s a certain level of complexity, if there’s a certain
level of frustration, if there’s nuance, then there’s a trigger for people to
always speak to a human. People can be guilty of looking at tech as the box
that everything fits into. It’s like a hammer in search of a nail. Well let’s
make it a box for everything, and we see it ultimately leads to poor outcomes.
How do you work to ensure that InsureTech
Connect is relevant to the discussions of today in a time of never-ending disruption?
What is our role? Our role is
to convene. When we think about the goal of insurance, both to enable people to
live and take risks and to get people back to a pre-loss state faster, our hope
is to always keep an eye on what’s happening and look at how we reduce the
coverage gaps and say, what is actually making a difference? Who is actually
making a difference? How do we make sure they get enough time on stage? And
more importantly, how do we enable the attendees, via technology, to connect
with each other so that start-ups meet an investor they might not have?
What can organisations, and the industry as a
whole, be doing now to open the door to the next generation of skilled workers
that’ll be able to continue to innovate and continue to operate in these new
and exciting times?
It’s one of those great
questions that has horrible answers because the businesses operate at scale.
It’s about repeatable process and it’s about having the data and then acting.
What we’re talking about now is, no one knows the data. We wouldn’t have
guessed 5 years ago that having somebody who was really good with a mobile
phone and understood Instagram could be a person that is immensely valuable to
the largest organisations, and yet today, you think about some of these
competencies… People are saying, ‘Oh, we want you to know how to use social
because having our 10,000 employees engaged in social is actually one of the
best ways for us to get seen and get noticed.’ But a lot of these skill sets we
have are not obvious until they’re obvious.
The best thing is to look at
the younger generation and at how they engage. Study them as consumers first,
as this is how they consume and then look to understand what that means, every five
or 10 years. The hardest part is we can oftentimes see where the future’s
heading, but we don’t know how long it’s going to take. There’s a real
discipline that says, how do we separate out some of these new skill sets, new
future activities, how do we stay on top of it, without trying to either shift
the entire organisation or treat it as something that is not that important
today.
What would you say is key to remaining successful
in this time of opportunity and challenge?
Never underestimate the power
of relationships, because it’s the people who are ultimately the ones that are
creating the next thing and the closer you are to the creators, the closer you
are to the ecosystem itself. I think it is also being calm; you have to be calm
and stop listening to the noise as much. We think about the companies that have
dramatically changed our lives. I think about some of the big tech companies: Google,
Amazon, Facebook, Apple. There are thousands upon thousands of start-ups that
are doing interesting things, but the number of them that are going to
ultimately change the way we do business are slow in their growth, in a way,
before they fully change us.
Be a little patient and learn
about ecosystems and make sure that you have at least someone or a team that is
comfortable with these new platforms, so that when one of them becomes dominant
like Facebook or Apple there’s at least some embedded knowledge about how these
things work. Listen, but don’t overreact. Be patient. There’s usually always
time, even though it doesn’t feel like it in the get-go.
Ian Moyse, EMEA Sales Director at Natterbox Limited outlines one of the most important skill sets in the modern age:…
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Ian Moyse, EMEA Sales Director at Natterbox Limited outlines one of the most important skill sets in the modern age: the need for acceptance and receptiveness of innovation and digitisation. The ability to be agile as a technology professional… By Dale Benton
How important is it to stay on top of, and to understand, both the speed of change and the increasing demands on modern technology?
One of the skill sets, and not just in sales or working in the tech sector, but across a lot of roles today, is the capability to be agile. Humans have this propensity to change and adapt. Otherwise, we wouldn’t be here today, right? But you’ve got to be willing to do that. A valuable skill today is acceptance and receptiveness and the ability to change, and change again, and again. We’re seeing less and less of doing the same thing day in, day out, for 30 years or so.
So, what exactly is Natterbox?
Natterbox has built, from the ground up, a cloud telephony system, which was called VoIP. The real unique thing is we’ve built the system fully inside Salesforce. We’re the most integrated telephony platform for the Salesforce platforms, whether it is service cloud, sales cloud, force.com etc., on the planet. You could say it’s a niche market, but it’s a very big niche market, enabling customers who have invested in Salesforce to also put their telephony in the cloud, and put the two together. It’s using data that you have about customers, whether it’s opportunities, cases, support, tickets, to improve and transform both your customer and your agent’s experience with telephony. To do things that you couldn’t do with old technology, and old telephony systems. Simple example, if you phone in and you had a ticket with a customer yesterday and they didn’t call you back, how transformational would it be if when you phoned them, if the phone system dynamically recognised your number, had looked you up in their system and went, “Hi Ian, thanks for calling this morning. We detect, we didn’t call you back on that ticket yesterday, if that’s what you’re calling about, press one, and we will escalate you to the right person quickly. Two, for our normal menu.”
We’re using live relevant data about the customer to personalize and transform their experience over the phone. Exactly like you’ve seen on websites for years, where you go to a website, it remembers who you are from a cookie, and starts to personalize your experience and treat you differently. We believe you should be doing that on the phone, and that’s the capability we give to customers.
Can you explore the technology that sits at the very heart of that?
We’ve seen some players try and do this by buying components, underlying components in, but we wanted to own the stack because if you’re going to do this stuff, it’s obviously important to you.You can’t do this stuff and do half a job, it’s got to be extremely resilient, because you’re setting the customer expectation, you’re setting the bar high and you’d better deliver. We architected this ourselves, and we chose Salesforce purely because we wanted to be the master of one and do it well. We decided we are going to do this to the extreme we believe the market needs.
Everything behind this has to use efficient, speedy cloud systems, because it’s real time. You have a conversation, you have an electronic voice, you want it to sound as human as possible, and it needs to be instantaneous. The customer isn’t going to wait two or three seconds as you would on websites. Our expectations are set high. It is extremely complex under the covers, but one of our goals we achieved was to make it easier for customers, to hide all the complexity in the back end, and give them an interface where they can configure this, and manage it very quickly themselves. So if they want to make a change, it’s real time. Make the change and it’s live across your whole phone system.
Data is key to what you do, but how do you ensure that data is governed?
If you look at the press today, in the past number of weeks, at the point we’re speaking now, we have seen some of the impact of data breaches like we’ve never seen before. The consequence used to be, A, we wouldn’t always necessarily hear about the story and B, the impact and cost of that business was reduced; it didn’t get much news. It was, “there’s been a breach”. If you heard about it, great, but it has diminished quite quickly. Today we live in a different world. The rules have changed.
We’ve seen these large businesses now, they’re getting fines in the hundreds of millions. So the penalty should have been there before. I don’t think the threats are getting worse. They’re getting different, but the threats have been there for years. If you’ve got data, it is an incredibly valuable asset. When I speak at schools, it’s always interesting. A question that’s come up a few times is, “Facebook and these, how do they make money?” Because they see these platforms, that they recognize cost money to build and run. “How do they make money?” The money isn’t in the membership fees, it isn’t in the logins. It’s in the data they get, what they know about us, how they can market to us and sell us… We’re their commodity, we’re their product.
With technology continuously evolving, how can companies like Natterbox be ready for the next wave of digital transformation?
What I say to people is, what is your business? What is the product or service you sell? What’s the dynamic of your customer? Now if you’re a hairdresser cutting hair, you physically have to cut hair. So unless some incredible robot comes along in the future, that’s going to continue. It’s understanding what your business is, and what the persona of your customers are and how are they wanting to interact with you? It depends on generation as well. Millennials have been born into a world where social media has always been there, and all this tech we’re seeing, and Amazon, and apps on your phone for ordering is taken for granted. I would argue, however, all of us that haven’t come from that generation have probably been dragged into it anyway, and we take it for granted as well.
Our expectation bars have been set to a peaked level. The problem for any business that isn’t in that born in the cloud model, is that the customer expects the same of you, because someone else has raised the bar. And that’s why we’ve seen the likes of Blockbuster Video fall foul of Netflix and Amazon’s LoveFilm as was. There’s nothing wrong with Blockbuster, we’re hiring a video. But someone came along and presented a faster, quicker, slicker, more flexible model. It changed the dynamic of how the customer engaged or bought that product or service.
If you’re in a market that can be transformed, or you’ve got someone coming into it, you need to start now. You need to be the ones doing it, not waiting for someone else to transform you, and then you’re on the defensive. It’s harder for you as a legacy business to transform than it is for a newcomer. A new business will buy everything in the cloud. They’ll buy all the new technology, and apply processes that fit the new world that we’re now in, and the new buyer dynamic, and the new customer persona, and the new tech world we live in. Because they can.
If you’re in a business, forget what you do today. Go in a room with the people who understand the history of your business, or the dynamic of your market. Whiteboard, spend a couple of hours with some coffee and donuts, and just chat through. If we were starting this company again today, what would we do? Imagine that your company does not exist. You have all left and gone to a start-up. You’re going to start a competitor. What would you do? You would not build what you built historically.
The reason you did that is because it was the world you were in at the time you built it. So there’s nothing wrong with what you did. It’s the nature of the beast. But today, you would do it differently. And that’s how your mindset needs to start. Then you work backwards to, “Okay, so how do we get there? What, what’s the easy win? Is there anything of these 20 ideas we’ve come up with, where we can start to … This year we could do three of them?” That’ll be hard in itself. Right? But we can start to move along the journey of trying to move towards that. Because we’ve all agreed if we started the business today, that’s what we’d do to beat our own company. If you can think of it, someone else can as well, and someone else can do it, and they can potentially do it quite quickly.
By Alistair Sergeant, CEO, Purple Consultancy Businesses are increasingly having to create and modify their organisational capabilities to adapt and keep…
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ByAlistair Sergeant,CEO, Purple Consultancy
Businesses are increasingly having to create and modify their organisational capabilities to adapt and keep up with the ever changing and evolving digital technology which surrounds them.
For many, their digital projects are failing; the speed of digital transformation is alienating the essential human interaction and cultural change required to make the projects a success.
Bring back the humans
According to the latest statistics, 88% of digital transformation projects fail and there is a reason for that.
The speed of digital change is something that no business can ignore but most try relentlessly and largely unsuccessfully to keep up with. We are surrounded with disruptive business models coming to market with new technology rapidly changing and it is easy to get so wrapped up by technology that we forget to consider that without the human element, the transformation process will fail.
This rapid change has resulted in a serious skills gap from a business and technology prospective for most UK organisations. As a result, both large corporations and SMEs UK wide are not as agile as they should be, not only affecting growth, but also impacting customer experience and employee engagement.
We know that (most) cars, no matter how technologically advanced they are, need a human to drive them and this is just the same when implementing digital change in your business.
Meaningful change starts with people, not technology. Your team needs to adapt to keep up with the pace by making changes to the way they have worked in the past but none of this can work successfully unless we encourage a chance in culture.
The role of the leader
To implement an effective digital transformation strategy, leadership is not only vital but critical for success. In so many cases, those implementing the strategy haven’t taken the time to understand what needs to be changed, what the strategy should aim to deliver and when, and more importantly how to correctly communicate change with staff or other company stakeholders.
It’s time to remove the digital-first approach as this method requires your entire team to buy in to it and almost forces them into a corner. To work on a new team culture in the business, which encourages your staff to embrace the changes and understand the reason for the changes, takes time. As a digital leader you need to guide and support your employees, encourage them and give them time to grow with the transformation process.
Understanding how they work, how they think and playing to their strengths is time consuming but will ultimately help to grow your successful ‘human-first’ approach.
Get to know your customers
Customers are human too. They are not just numbers on a sheet. It is vital you get to know them, get to the bottom of what they like, what they want and also what they don’t want. You are aiming to promote a human-centric approach so that you give them the solutions they actually want and not what you assume they want.
You can maximise the success of your product or brand by taking the time to get to know who your target market is and allowing them to see that there are humans behind the brand who actually care about what they want and are prepared to talk to them and listen to them.
No matter how advanced technology is becoming, in certain situations there is simply no replacement for the human touch. Empathy plays a large part in positive company and team growth as well as social skills, the power of persuasion and negotiation, and these are all done better by humans and is what your customers will relate to.
Be patient
Building a system within your business, where humans and technology can work together with more of a balance, is where successful digital transformation will be most successful. One can’t work without the other but in your quest to beat off the competition, don’t overlook the heart of your business, which is the human element and ensure you invest as much in them as the technology you use. Take time to let a new company culture evolve and ensure that your employees understand the new structure and most importantly your vision as you are the ‘human’ who is implanting the change.
Welcome to a packed August issue of Interface Magazine! This month’s exclusive cover story is with a telecommunications giant. We…
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Welcome to a packed August issue of Interface Magazine!
This month’s exclusive cover story is with a telecommunications giant. We caught up with Verizon Consumer Group’s Executive Director of Sales Experience John Walker to discuss the telco’s transformation of its customer journey…
The largest wireless provider in the US, Verizon, with its 4G LTE network, covers approximately 98% of the States. The company has transformed its customer journey, while boosting revenue in the process, in an omni-channel offering that has reshaped its sales strategy.
Verizon Consumer Group’s Executive Director of Sales Experience across those channels is John Walker and it’s his job to examine the shopping path and the process of shopping in a bid to provide a greater experience for both the customer and the sales team. “We’re moving on,” Walker explains, “from having a channel-focused distribution strategy to a customer-journey focused one. It’s a big change…”
We also speak to Neil Williams, Director of IT and Digital Transformation
at the University of Derby, who has overseen massive changes at this
progressive tech powerhouse. Plus, we have an exclusive interview with Frank Konieczny, CTO at the US
Air Force and Borislav
Tadic, Vice President BMS & Transformation DRC at Deutsche Telekom.
All the best tech events and conferences are also listed, as are
the Top 5 companies deploying blockchain.
By Lee Metters, Group Business Development Director, Domino, “Get closer than ever to your customers. So close, in fact, that you…
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By Lee Metters, Group Business Development
Director, Domino,
“Get
closer than ever to your customers. So close, in fact, that you tell them what
they need well before they realise it themselves.” Steve Jobs
Every brand
aspires to get close to its customers to understand what makes them tick. Those
that succeed invariably deliver better experiences that inspire long-term
loyalty. Today, the world’s biggest brands know us so well they’re able to
personalise their marketing to match our individual tastes and behaviours. When
Netflix recommends you try Better
Call Saul, it’s because it knows you binge-watched Breaking Bad. The
personal approach works; whether it’s a Netflix notification or a ‘programmatic
playlist’ from Spotify, targeted recommendations – informed by deep learning
and vast data – hugely influence the content we stream. Steve Jobs was right:
successful brands get so close to their customers, they can tell them what they
need long before they know they need it. And we all keep coming back.
However,
not all brands are as fortunate as the digital disruptors. How do you get close
to your customer when your brand isn’t an online service that’s routinely
capturing user data? If you’re marketing a physical entity – a food, a toy, a
designer handbag or a male grooming kit – how do you even know who your
customers are (let alone what they need) when complex supply chains inevitably
separate you from your end-user? How can you add brand value when you can’t
build a direct relationship with your customer or lay the foundation for
long-term engagement? The answer is: you can. In fact, as Lee Metters, Group
Business Development Director, Domino, examines, with the advent of simple,
affordable technology, you can do it quickly, easily, and
cost-effectively.
New
opportunities
A convergence of factors is creating new opportunities for marketers to transform the way they manage their brands through the consumer lifecycle. The availability of personalised barcodes combined with the ability of smartphones to read them, has reinvented consumer behaviours, with shoppers increasingly scanning product barcodes to discover more about the brands they buy. However, until recently, the absence of standardised coding meant that brands needed to create proprietary apps to deliver their value-added features, relying on customers’ willingness to download ‘yet another app’ in a world of app fatigue.
The introduction of GS1 Digital Link barcodes, which provide a standards-based structure for barcoding data, has removed this need for product-specific apps. It’s opened up the potential for marketing innovation – such as digitally activated campaigns that can transform a product into an owned media channel – enhancing the brand experience and building stronger connections with customers. This key development has been assisted by the emergence of advanced coding and marking systems that are helping brands include more information on every product, allowing them to personalise customer experiences at speed and scale.
With
customer intimacy considered a key driver of commercial success, personalised
coding and marking can help brands achieve the Holy Grail of getting closer to
their customers. What’s more, it provides a platform for value-added innovation
that builds engagement, trust, and long-term brand loyalty. The potential
applications are exciting and wide-ranging.
Internet
of Products
Digital
innovation is not limited to online brands – practically every product can form
part of a connected and accessible online ecosystem. An internet of products.
In its simplest form, personalised barcoding can provide a gateway to online
content – user manuals, product details, blogs, communities, and customer
support – that enhances the brand experience. However, beyond the basics, the
opportunities for compelling customer engagement go much further. Leading
brands are using QR codes to trigger anything from loyalty schemes and
competitions to gamification and immersive brand experiences. Progressive
brands are using barcodes to create innovative gifting solutions – allowing
customers to record personal video messages to accompany their presents, giving
their loved ones a more memorable experience.
The
potential for innovation is significant – and the rewards are too. For example,
in Germany, Coca-Cola used barcoding on cans and bottles to engage directly
with consumers, with a simple scan connecting customers with ‘in the moment’
mobile experiences. The digitally activated campaign allowed Coca-Cola to
transform its products into an owned media channel, captivating customers with
personalised content, incentives, and competitions that generated unprecedented
brand engagement. The campaign has subsequently been rolled out across 28
markets in Europe and North America.
Provenance
and authenticity
Serialisation,
first introduced to safeguard the medicines supply chain against the plague of
counterfeit drugs, is now being widely applied across many industries –
allowing brand owners and customers to track and trace products and determine
their authenticity. This is a significant value-add in sectors like food, where
discerning consumers are increasingly interested in the provenance of produce,
and the journey foods make from farm to fork. With carbon footprint and other
environmental issues now a key influence on consumer purchases, traceability is
a major value-add across most commercial industries.
The
value of data
Barcode
innovation undoubtedly provides considerable value for consumers. With research
showing that customer experience is the most competitive battleground in
consumer markets, qualities such as transparency, social responsibility, and
open engagement are all crucial ingredients in a trusted brand experience where
personalised barcoding can help. But the value exchange isn’t all one way:
marketers benefit too.
Direct link barcodes provide a mechanism to capture a rich seam of real-time data that can help brands understand – and respond to – customers’ needs. Simple information such as user profiles, geo-location, purchase history, dates, and times can be leveraged to build a dynamic picture of individual customers, helping to inform a wide range of services and communications. This data can provide a powerful marketing platform – an organic and automated CRM – to target customers and personalise communications based on identifiable preferences and behaviours.
Marketers can understand customers’ buying cycles to trigger timely and relevant alerts. They can upsell products and accessories, nudge customers when warranties expire, or past purchases are getting old and tired. And just like Netflix, they can recommend new products that customers will love – long before they know they need them.
Cracking
the code
The
emergence of GS1 Direct Link barcodes – and the smart technologies that support
them – is transforming the retail experience, helping consumers find out more
about the products they buy and bringing brands much closer to customers. As
the High Street battles tough economic conditions and the rise of digital
disruptors, the successful brands of tomorrow will be those that exploit the
creative opportunity of personalised barcoding and deploy advanced coding and
marking systems that make the magic happen.
The recent Maze Group report outlines that if the UK’s 237,000 adults’ nurses in acute, elderly and general care were to work in innovative productivity-enhancing hospitals, they would gain back a total of 25 million hours of time back every year. This equates to adding 13,500 full-time nurses to the NHS workforce. This is due to the current hospital facilities hindering optimum productivity. The report outlines that four in 10 public sector workers stated that they were unproductive for more than two hours every working week because of their workplace environment
The NHS is a recurrent issue in the UK, shown by its
centrality to the Brexit campaigns and the current conservative leadership
election. However, the NHS is facing severe staff shortages, and
resources to fund public services are scarce. Tax rises to boost budgets are
politically unattractive, but due to the UK’s increasingly ageing population,
there is an urgent need to find a solution.
One new solution now being discussed is innovative productivity.
At the moment, more than 95% of data on a building site is lost or not even recorded, meaning contractors are building new facilities from scratch, over and over again. New construction technology means going forward structures will be created by a standardised set of components that incorporate significant amounts of feedback from end users into the next iteration of the design. New digital blueprints can lead the construction process by ensuring collaborative access to current plans, documents, appointments, and contacts for the whole of a project team, as well as providing sight of far more of the supply chain, manufacturing process and on-site requirements from the outset. Subsequently, this means going forward hospitals can be manufactured following the same interactive blueprints. The standardization of hospitals should enable trained health care workers to perform effectively in any new facility.
PlanRadar co-founder, Sander Van de Rijdt, believes the tech
revolution finally happening in construction means ideas about how structures
and buildings are built will be different in the future, designed instead
around the user and optimised for how people use their spaces and environments.
This revolution will change how our public services are delivered and tap into
the hours of unlocked productivity in UK hospitals.
PlanRadar is designed to tackle productivity issues. Their
users already realising time savings of seven working hours per week on
average, which is roughly around 18% of their working time and leads to reduced
costs of up to 70%. It’s one of the new construction technologies that will be
pivotal in building the next wave of innovative productivity-enhancing
hospitals and improving the future delivery of the NHS.
Alan Gibson, Senior Vice President, EMEA at Alteryx It’s no secret that data and analytics play a key part in…
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Alan Gibson, Senior Vice President, EMEA at Alteryx
It’s no secret that data and analytics play a key part in
every organisation’s digital transformation efforts. Data science has become a
rapidly progressing field thanks to the crucial role it plays in understanding
big data.
Although data has become a real game-changer harnessing
it is not always straightforward and many global corporations are struggling to
leverage their data assets. These strategies generate an overabundance of data
– and even more questions, requiring more analytics than most can possibly
imagine. They also require continuous analytic breakthroughs in order to
achieve a true digital transformation.
This pressure to exploit data in new ways and the
increased emphasis on digital transformation is also causing a tremendous
amount of strain on organisations’ analytics teams. Although many are investing
heavily in data technologies to transform their organisations, quick access to
information and insights can be impossible – and many are still failing at
putting this data in the hands of the business people who must make use of the
insights.
A key tactic for improving data access and providing
insights involves bringing the two elements of data and data science together. For many organisations unifying these in order to
drive digital transformation continues to be a challenge. Every vertical and
department has a need for ingesting disparate content and performing complex
analytic processes against it to drive value from the massive accumulation of
’dark data’ stored by organisations. Unlocking the value of such data through
data analytics is key to guiding leaders make more informed decisions.
One of the principal ways in which organisations can unify
data and data science is by changing the status quo and developing an analytics
culture across the business. Analytic teams serve as the backbone to digital
transformations, but more often than not we find that analytic teams are
starting from an insufficient position, attempting to innovate with legacy
holdovers of analytics processes, technology and team alignments. Holding on to
these relics are the biggest barriers to analytic alignment and innovation.
Leaders focussed on digital transformation should targe
both cultural and technology strategies that help to create an analytics
competency to fuel digital innovation. This is no small task. With data skills
in short supply and demand for data-related roles set to continue to rise
within the next four to five years, this is either exciting or intimidating
depending on what side of the analytic effectiveness spectrum you’re sitting!
Linking up data insight to people with vital business
knowledge is paramount to organisations wanting to make the most of data
analytics. Not only will it enable the organisation to understand data
analytics at every level it will also create an army of ’citizen data
scientists’. Uniting departments that otherwise would have been siloed while
generating more insightful and valuable analyses. Empowering these burgeoning
citizen data scientists is a unique opportunity for organisations to compete in
today’s digital economy. These individuals are eager to learn and develop new
skills to improve their personal development and contribute to the business,
but they can only be harnessed with the right enablement, support and
self-service tools. What’s more, according to a survey conducted by Forbes Insights in
collaboration with EY organisations which have an analytics strategy central to
their overall business strategy are approximately five times more likely to
achieve revenue growth and operating margin greater than 15 per cent, as
compared to organisations lacking an analytics vision.
With the hyper-focus on digital transformation, it’s
important to keep it in perspective. It isn’t always about new ‘things’, it’s
about new value. Harnessing the networking effect of data, people and
technologies paves the way to creating a sustainable cycle of analytic
innovation that drives digital transformation.
ENDS
Alteryx offers
an end-to-end analytics platform that empowers data analysts and scientists
alike to break data barriers, deliver insights, and experience the thrill of
getting to the answer faster. Organisations all over the world rely on Alteryx
daily to deliver actionable insights.
By Amyn Jaffer, Head of Intelligent Automation, Ultima Most businesses now recognise they will need to embrace intelligent automation to…
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By Amyn Jaffer, Head of Intelligent Automation, Ultima
Most
businesses now recognise they will need to embrace intelligent automation to
gain competitive advantage. From improving business processes and customer
experience, to using ‘cobots’ to work alongside their workforce, AI offers companies
huge scope to improve their business efficiency and drive innovation.
Yet,
while many companies are excited about the potential of this new technology,
the very concept of AI often evokes fear of the unknown for others – especially
for businesses that, understandably, don’t know where to start on their Intelligent
Automation journey. As with most daunting tasks, the best approach is to take
incremental steps.
RPA: a good place to start
An
ideal first step on the road to digital transformation is the introduction of
RPA (robotic process automation), which uses robots to handle high-volume,
repeatable tasks that previously required humans to perform them. These tasks
can include queries, calculations and maintenance of records and transactions.
As
well as being relatively simple to implement, using software robots is both
affordable and effective; and the potential benefits are impressive.
As
an example, RPA can be used by HR teams to ensure each company department has
the same information about every employee without the typical challenges of running
multiple system records and repetitive re-entry of information. It can also be
used for absence management and for processing applications, saving time for
your employees to focus on more strategic work. As a second phase,
organisations can then make HR information more accessible by implementing
chatbots.
Any
large-scale activities or groups of repetitive tasks that draw on or feed
information into multiple systems are also candidates for intelligent automation.
In practice, this could mean using cognitive services such as text and
sentiment analysis to process and respond to natural language text within
formats such as emails, documents and live webchats. The aim is to extract data
from these sources without the need for human intervention.
One
training provider which takes up to 400,000 first line calls annually is using
speechbots to answer calls and leverage RPA to verify the caller. This has
resulted in reduced operational expenditure in the call centre by 50% and
increased efficiency.
Similarly,
cognitive services can also be used to improve business efficiency through visual
recognition. One company is using this technology to tag information in
photographs – a task that would take hundreds of man-hours to do, but just
seconds with cognitive services.
At
Ultima, we have been using RPA technology to automate our own back-end operations
and we’ve seen productivity rise by a factor of two since implementing the
technology across five processes. For example, we automated our forecasting and
planning tasks. Software robots collate real-time sales and marketing
information and process all the information they collect during the day to
produce detailed forecasts and business intelligence for the next morning.
Usually this took eight to ten hours per day of staff time. As a result, the
business has improved business intelligence to plan with, and staff have more
time to spend on customer service and strategic thinking.
The next level
Taking
care of mundane tasks, RPA frees companies to explore more complex AI-based
automation – using visual and cognitive intelligence that draws information
from multiple sources and interprets it to deliver improved business
intelligence.
By
automatically collecting and sifting through vast amounts of data and then
training robots to make sense of the data by asking the data pertinent
questions, businesses can start to solve the problems that have been keeping them
up at night. For example, analysing customer data to establish insights into
how different things affect their purchasing decisions can give real business
benefits and drive innovations in how a business might supply and market its
goods.
However,
before taking this next step, it’s important for any organisation to look
practically at their infrastructure, workforce and security, and consider what
might need to change to enable their businesses to be set on a positive path to
digital transformation.
Ready for the future
Ultimately,
we’re all likely to have a ‘virtual worker’ by our sides helping us to do our
jobs, cutting out mundane, repetitive tasks and freeing us up to be more creative
and focus on business goals and innovation. To reach this stage the right
foundations need to be in place, and the adoption of RPA is the best place to
start.
Automated
machines will collate vast amounts of data and AI systems will understand it.
By coupling two different systems – one capable of automatically collecting vast
amounts of data, the other that can intelligently make sense of that
information – individuals and businesses will become more powerful.
Take a deep breath,
jump in and get ready to realis
This month’s cover features Gary Steen, TalkTalk’s
Managing Director of Technology, Change, and Security, Gary Steen regarding the
telco’s commitment to thinking, and acting, differently in a highly competitive
marketplace…
TalkTalk is an established telecommunications company that fosters a youthful, pioneering spirit. “I like to think of TalkTalk as a mature start-up,” says Managing Director of Technology, Change and Security, Gary Steen. “We are mature in terms of being in the FTSE 250, with over four million customers, relying on our services every day through our essential, critical national infrastructure. But that said, I definitely think we start our day thinking as a start-up would. What can we do differently? How do we beat the competition? How do we attract great talent? We’ve got to come at this in a different way if we are going to succeed in the marketplace. We are mature, but we think like a start-up.”
Elsewhere we speak to Natalia
Graves, VP Head of Procurement at Veeam Software who reveals the secrets to a
successful procurement transformation. Graves
was tasked with looking at the automating, simplifying, and accelerating of
Veeam’s procurement and travel processes and systems around them, including
evaluating and rolling out a company-wide source-to-pay platform. “It has been
an incredible journey,” she tells us from her office in Boston, Massachusetts.
We also feature exclusive interviews with PTI Consulting and cloud specialists
CSI.
Plus,
we reveal 5 of the biggest AI companies in fintech and list the best events and
conferences around.
Digital transformation is making it easier for procurement organisations to “do more with less,” according to newly-released Procurement Key Issues research from The Hackett…
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Digital transformation is making it easier for procurement organisations to “do more with less,” according to newly-released Procurement Key Issues research from The Hackett Group, Inc. (NASDAQ: HCKT). But there is still significant need for procurement to address its critical development priorities for 2019, including: improving analytical capabilities, aligning skills and talent with business needs, leveraging supplier relationships, enhancing agility, and achieving true customer-centricity.
Digital transformation is beginning to have a significant impact on procurement organisations, The Hackett Group’s research found, with 30-40 percent saying it has had a high impact in achieving enterprise objectives, enhancing performance, optimising the service delivery model, and addressing roles, skills profiles, and needs. Over the next two to three years, procurement organisations expect the impact of digital transformation to dramatically increase, with key areas like robotic process automation and advanced analytics seeing particularly high adoption growth rates (2.3x and 60 percent, respectively). Broad adoption of e-procurement technologies is also expected to grow by nearly 2x.
Procurement expects its budget to grow at a much slower pace this
year than in 2018 (1.3 percent, versus 2.7 percent last
year). Procurement staffing shows a similar trend, with 0.9 percent
growth expected, versus 2.8 percent in 2018. With revenue growth expected to
increase from 5 percent in 2018 to 5.7 percent for 2019, this creates
significant productivity and efficiency gaps
that procurement organizations must overcome.
A complimentary version of the research is available for download,
following registration, at this link:http://go.poweredbyhackett.com/keyissuespro1902sm.
Note – The full research piece includes 7 charts containing more than 60
complete metrics.
Procurement has aggressive plans to increase its use of digital
tools and procurement-specific technologies over the next two years, the
research found. Procurement will invest heavily in cloud-based
business applications along with several data management technologies: data
visualization (where adoption rates will rise by 24 percent), master data
management (57 percent adoption growth), and advanced analytics (60 percent
adoption growth). Spend optimization analytics and dashboarding adoption rates
are expected to grow by 61 percent. Broad-based adoption of
e-procurement technology is expected to grow by nearly 2x.
Use of mobile computing and robotic process automation (RPA) are also
expected to rise dramatically, indicating a focus on more efficient, agile
processes across the procurement lifecycle. RPA sees the highest
adoption growth rate among digital technologies, at 2.3x. While RPA is
primarily being used for procure-to-pay processes at present, there are a range
of other procurement areas that can benefit from automation of
repetitive work, including updating of vendor master files and electronic auction
setup.
Procurement-specific technologies are expected to become far more
broadly adopted over the next two years, with nearly universal adoption of
e-procurement, spend optimization analytics, and supplier relationship
management systems, and just slightly lower adoption rates for e-invoicing and
contract lifecycle management. This represents a major shift toward
customer-centricity, designed to enable organizations to simplify and
streamline processes, and improve agility.
The research found that procurement’s 2019 actual transformation focus is poorly aligned with what should be its critical development priorities; i.e. areas identified as of critical importance, but with very limited ability to address. Among those, development of analytical capabilities is a transformation focus for about half of procurement organisations. Modernising application platforms is another top transformation focus, and is a key way to achieve simplification due to the complexity of many legacy environments. Consolidating multiple legacy systems is also a critical step towards to improving data management and analytics.
But of the other critical development areas, less than a third of
all procurement organizations have a major initiative in place to
improve skills and talent with business needs, and even fewer said they intend
to work on agility or focus on improving customer-centricity and supplier
relationship management capabilities.
Procurement is also focused on its role enabling the enterprise in
2019, with an array of priorities that include elevating their role as a
trusted advisor, continuing to reduce purchase costs, improving stakeholder
satisfaction, and enhancing agility.
“Procurement organizations are clearly making investments in
digital transformation and are seeing real benefits. The focus on improving
analytics for 2019 is particularly encouraging. But the laundry list of
critical areas where they have very limited ability to make improvements is
very disconcerting,” said The Hackett Group Principal &
Global Procurement Advisory Practice Leader Chris Sawchuk. “Despite
the fact that procurement knows what it needs to do, it’s simply not
fully translating into an effective plan of action. Procurement must
become fully dedicated to advancing its capabilities in analytics,
customer-centricity, agility and more, while also investing in the right talent
to help lead those changes.”
According to The Hackett Group Research Director Laura Gibbons, “Failing
to address the five critical development areas poses a significant risk. For
example, we see skills & talent as a particularly critical risk
factor. Procurement has begun to truly invest in digital
transformation, but if it doesn’t have the right people in place, digital tools
could end up being misused or wasted. You need the right people, with the right
skills in place, to take full advantage of what digital transformation can
offer.”
This same issue holds true in several other of these critical
development areas,” explained Gibbons. “Agility is critical if procurement
is to be able to respond to market changes. Without a focus on
customer-centricity, procurement can miss significant opportunities
for improving efficiency, simply because they don’t effectively know what the
business needs. And without supplier relationship management, opportunities for
innovation can be missed.”
Sawchuk explained that the potential impact of digital transformation
in procurement is powerful. “Advanced analytics can enable companies
to become less reactive and more predictive, more quickly and accurately
identifying and avoiding risks. It can drive dashboards where anyone can log in
and get real-time data. Dynamic discounting is another area that can be
very challenging for many companies, but can be easily enabled by digital
transformation.”
“Smart automation can reduce operating costs, and eliminate
transactional work, freeing up staff time for more value-added efforts,” said
Sawchuk. “Even if procurement can simply focus on a larger percentage
of the spend base, the value is very significant. And digital tools can
streamline and improve the experience of internal customers and suppliers.”
The Hackett Group’s 2019 Procurement Key Issues research,
“2019 CPO Agenda: Building Next-Generation Capabilities,” is based on results
gathered from about 150 executives in the US and abroad, most at large
companies with annual revenue of $1 billion or greater.
Neill Hart, Head of Productivity and Programs at Computer Systems Integration (CSI), speaks exclusively to The Digital Insight about how…
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Neill Hart, Head of Productivity and Programs at Computer Systems Integration (CSI), speaks exclusively to The Digital Insight about how the company has moved beyond simple systems integration and helps customers find and exploit a ‘perpetual edge’ in technology innovation and digital transformation. Click here to listen to the full podcast!
“As Head of Productivity and Programs at CSI and the head of enablement, I am the middle ground between strategy and execution. We take the company strategy, which is very much centred on digital transformation, and using utility or cloud computing, we take it to the market in a way that makes sense for our client base.
Companies will have three or four desired outcomes; grow the business, save money, innovate faster and to protect (data, reputation etc.). Traditionally it’s to save money. On-premise data centres require capex investment, you have to buy equipment, run it in a data centre and pay for electricity and power, operations etc. The offer of cloud or utility computing is that use what you need and only pay for what you use. You don’t pay a lot to the water company if you don’t turn the taps on. That’s the dream of utility computing or cloud computing is that you break away from the capex investment. It’s inflexible. If you run out of capacity with an on-premise data centre, you have to buy some more equipment and that takes weeks or months to arrive. With cloud, if you need some more you pay for more…”
It’s no secret that data and analytics play a key part in every organisation’s digital transformation efforts. Data science has…
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It’s no secret that data and analytics play a key part in every organisation’s digital transformation efforts. Data science has become a rapidly progressing field thanks to the crucial role it plays in understanding big data.
Although data has become a real game-changer harnessing
it is not always straightforward and many global corporations are struggling to
leverage their data assets. These strategies generate an overabundance of data
– and even more questions, requiring more analytics than most can possibly
imagine. They also require continuous analytic breakthroughs in order to
achieve a true digital transformation.
This pressure to exploit data in new ways and the
increased emphasis on digital transformation is also causing a tremendous
amount of strain on organisations’ analytics teams. Although many are investing
heavily in data technologies to transform their organisations, quick access to
information and insights can be impossible – and many are still failing at
putting this data in the hands of the business people who must make use of the
insights.
A key tactic for improving data access and providing
insights involves bringing the two elements of data and data science together. For many organisations unifying these in order to
drive digital transformation continues to be a challenge. Every vertical and
department has a need for ingesting disparate content and performing complex
analytic processes against it to drive value from the massive accumulation of
’dark data’ stored by organisations. Unlocking the value of such data through
data analytics is key to guiding leaders make more informed decisions.
One of the principal ways in which organisations can
unify data and data science is by changing the status quo and developing an
analytics culture across the business. Analytic teams serve as the backbone to
digital transformations, but more often than not we find that analytic teams
are starting from an insufficient position, attempting to innovate with legacy
holdovers of analytics processes, technology and team alignments. Holding on to
these relics are the biggest barriers to analytic alignment and innovation.
Leaders focussed on digital transformation should
target both cultural and technology strategies that help to create an
analytics competency to fuel digital innovation. This is no small task. With
data skills in short supply and demand for data-related roles set to continue
to rise within the next four to five years, this is either exciting or
intimidating depending on what side of the analytic effectiveness spectrum
you’re sitting!
Linking up data insight to people with vital business
knowledge is paramount to organisations wanting to make the most of data
analytics. Not only will it enable the organisation to understand data
analytics at every level it will also create an army of ’citizen data scientists’.
Uniting departments that otherwise would have been siloed while generating more
insightful and valuable analyses. Empowering these burgeoning citizen data
scientists is a unique opportunity for organisations to compete in today’s
digital economy. These individuals are eager to learn and develop new skills to
improve their personal development and contribute to the business, but they can
only be harnessed with the right enablement, support and self-service tools.
What’s more, according to a survey conducted by Forbes Insights in
collaboration with EY organisations which have an analytics strategy central to
their overall business strategy are approximately five times more likely to
achieve revenue growth and operating margin greater than 15 per cent, as
compared to organisations lacking an analytics vision.
With the hyper-focus on digital transformation, it’s
important to keep it in perspective. It isn’t always about new ‘things’, it’s
about new value. Harnessing the networking effect of data, people and
technologies paves the way to creating a sustainable cycle of analytic
innovation that drives digital transformation.
Welcome to the May issue of Interface magazine! Our cover story this month features FWD Philippines’ CTO Rogelio ‘Nooky’ Umali,…
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Welcome
to the May issue of Interface magazine!
Our
cover story this month features FWD Philippines’ CTO Rogelio ‘Nooky’ Umali, who
gives us the lowdown on disrupting the life insurance sector. Umali
and his team put the customer experience at the very centre of its innovations:
“We ensured that every single leg of a customer’s journey was assessed and then identified which
parts were the real pain points. The solutions were
then focused on resolving these pain points.”
Elsewhere, we feature Ed Clark, Chief Information Officer at
the University of St. Thomas, Minnesota, the guys behind innovative EV chargers
Andersen EV, Cranford Group’s Rachel McElroy and ‘CIO of the Year’ Vennard
Wright…
Digital skills shortages blight UK jobs market for 20 years A lack of technical expertise has fuelled skills shortages across…
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Digital skills shortages blight UK jobs market for 20 years
A lack of technical
expertise has fuelled skills shortages across the UK for the last two decades.
That is according to comparative analysis of the professional jobs market by
The Association of Professional Staffing Companies (APSCo), which is celebrating its 20th
Anniversary this year.
According to a 1999 report
from University College London, almost half (47%) of all ‘skill-shortage
vacancies’ that year could be attributed to a lack of technical expertise. For
‘associate professional and technical’ roles, the need for ‘advanced IT’ skills
was responsible for 31% of vacancies, while a lack of ‘other technical and practical
skills’ were responsible for a further 49% of all open
roles.
A separate report
published the same year by Computer Weekly revealed that C++ developers were
the most in-demand professionals with Java the second most sought-after skill
in the IT recruitment market.
Today, research
from The Edge Foundation suggests that around half of all employers (51%) have
been forced to leave a role open because there are no suitable candidates
available, and that tech job vacancies are costing the UK economy £63 billion a
year. LinkedIn data
indicates that cloud and distributed computing is the most valued skill among
employers, with user interface design, SEO/SEM marketing and mobile development
also featuring in the top 10.
Commenting on the analysis, Ann Swain, Chief Executive of APSCo, said:
“While the specific skills
that employers are seeking have changed dramatically over the past two decades,
the fact that talent gaps continue to be aligned with technical competencies
suggests that we need to do more to boost Britain’s digital capabilities.
“Our members have long
reported shortages of talent across the IT and digital fields. For this reason,
it is crucial that we ensure that we retain access to the STEM professionals
that businesses need in the short term – through maintaining access to global
talent and retaining our flexible labour market. However, perhaps more
importantly, we must pipeline the calibre and volume of skills we need for the
future so that we break free from this perpetual skills shortage. As this data
indicates, for the past 20 years we have been playing catch-up – and we must
break the cycle if individual businesses, and the wider UK economy, are to
fulfil their full potential.”
Technology is becoming a tool for expanding human senses and abilities. This requires intelligent and immersive interfaces. Will voice, gesture…
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Technology is becoming a tool for expanding human senses
and abilities. This requires intelligent and immersive interfaces. Will voice,
gesture and thought control soon replace keyboards and touchscreens?
Reply’s study, conducted with the trend platform SONAR, examines trend-setting concepts for interfaces between
humans and computers – Human-Machine Interfaces – which are now becoming real
possibilities for communication between humans and machines. For companies,
there is significant potential for more personalised and emotional customer
interaction as well as new possibilities for the visualisation and analysis of
information.
Voice assistance
20 million people worldwide already use voice
assistants daily to search for information, make purchases or play music. Also,
in the corporate environment, voice assistants enable a completely new way of
using technology and automate many tasks. The smart assistants perform entire
tasks, record things or make calls without any human intervention. This
increases productivity and leaves employees with more time for challenging
tasks. Through voice interfaces devices can be controlled using voice input,
and smart software agents will be able to perform an increasing number of
services in the future. What’s more, electronic in-ear devices, so-called
hearables, can be used for a wide range of applications, from wireless data
transmission to communication services.
Extended Reality (XR)
The technologies combined under XR enable barrier-free
interaction between man and machine and eliminate geographical distances. They
revolutionise people interaction with the environment: Augmented, Virtual and
Mixed Reality support consumer decision, reduce costs, increase efficiency and
a more productive environment. Other emerging trends include gesture control
and 3D displays, which create a virtual three-dimensional image of an object
and offer interactive possibilities. Smart glasses, which provide the wearer
with additional information about what they are seeing, are also among the XR
trends.
Full Immersion
Full
immersion technologies allow the direct exchange of information between man and
machine. Advances in fully immersive technologies and neurosciences show that a
world in which people are fully connected to computers is coming. Scientific
research in medicine is leading the way into a future in which the human brain
can control computers with mere thoughts and exchange ideas via headsets or
brain implants. Companies are already working on neurally controlled
interfaces. They offer direct communication channels between a networked brain
and external devices. Another trend technologies are in the area of augmented
bodies, which aim to strengthen the human body and its performance using things
such as implants or electronic tattoos.
Furthermore, the study also identifies four visions
that could soon become reality:
Sending thoughts: ideas,
feelings and memories to be shared directly with other people.
Human enhancement: by
directly connecting the brain with computers, AI-controlled assistants and the
Internet, know-how can be downloaded into the brain or expanded with
super-intelligent AI systems.
Neural healthcare: immersive
technologies may enable people to recover from diseases that are still
incurable today, such as Parkinson’s or paralysis.
Virtual copies: by
connecting to computers, a person’s thoughts, memories and feelings can be
stored as data and, one day, may even make a complete virtual copy of the brain
possible.
“Communication between man and machine is one of
the most exciting topics of our time. Technologies at the interface between us
and intelligent systems will enable a paradigm shift in all areas of life in
the near future. The resulting new products and services will offer completely
new solutions for telling stories and visualising information. The three trends
identified by SONAR and the four visions provide companies with guidance on
their journey towards digital transformation,” says Filippo Rizzante, CTO
Reply.
The Human Machine Interfaces report is part of a
series published on the following topics AI,
Retail
Revolution and Consumer-IoT.
Coeus Consulting, an award-winning independent IT consultancy, has announced new research revealing that although the fate of many organisations depends…
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Coeus Consulting, an award-winning independent IT consultancy, has announced new
research revealing that although the fate of many organisations depends on
their ability to implement strategic change and to adopt disruptive
technologies, a reported lack of business and IT alignment, coupled with a
corporate fear of risk, means they risk losing out on crucial revenues and
market share.
Just 21% of those surveyed stated they seek to implement new technology as soon as possible, with some of the main barriers to adoption being: fear of disruption to core business (30%), lack of budget to adopt new technology (21%), and poorly planned adoption strategies (19%).
“While it is reassuring that
organisations are at least attempting to keep up with disruptive technologies,
it is somewhat concerning that they are not doing more. Monitoring advancements
is the first step on the road, but only three in ten organisations make
technology decisions in the boardroom. With technology now playing a vital role
in every industry, organisations need to increase their understanding of
technology and be prepared to take more calculated risks in order to reap the
benefits and execute successful strategic change”, Keith Thomas, Head of IT
Strategy Practice, Coeus
Consulting commented.
Successful implementation rates
are low among respondents which could explain these fears, with only seven
percent noting that all of their organisation’s strategic IT change projects
have met initial objectives over the past two years. The good news is that, of
those from organisations that have a test and learn culture, and also set
objective success or failure criteria for initiatives in advance, almost sixty
percent report that their organisation investigates or adopts a different
approach when initiatives don’t meet objective success criteria. “Organisations
are blinkered to the market and must be willing to tread the fine line between
adopting technologies quickly and rushing the process by investing in the wrong
technology, otherwise they risk being overtaken by their competitors and will
see declining revenues”, commented Ben Barry, Director, Coeus
Consulting.
Aligned and informed
organisational leadership is clearly an issue within organisations where at
least some strategic IT change projects have not met initial objectives, with
just over seventy percent admitting one of: business plans changing, senior
management not buying into the change, or not taking enough risks as a reason
for failure. “This is disconcerting, if those at board level are failing to see
the benefits of strategic IT change, then implementation, adoption and
deployment of new technologies is destined to fail. Businesses need to ensure
board-level understanding of the importance of IT, as well as building stronger
strategic IT change capabilities”, added Thomas.
“Consumer demand for new and
improved offerings, paired with demand for digitalisation from the business,
means that organisations not only need to increase the speed at which they are
doing things, but must also match, or stay ahead of the offerings from
disruptive and agile competitors”, Thomas noted.
Seeking to discover how
organisations view the next wave of disruptive technology, almost a third (29%)
of respondents believe artificial intelligence represents the most significant
innovation set to impact their industry in the next two years, with data and
analytics (18%) next in line. Despite their predictions on the next generation of
technology, only 38% of respondents say they operate with dedicated teams
monitoring the latest advancements. This suggests sixty percent of
organisations could be operating with little knowledge of innovations taking
place outside their four walls.
Despite the current economic
climate, funding seems to be a secondary issue. Last years’ research found that
just over six in ten (62%) of respondents predicted an increase in the size of
their budget for the coming year. In actual fact, only 50% of respondents from
the survey this year reported an increase.
However, just over 50% of
respondents reported that digital services are being funded from the IT budget
in their company, and additional funding is also allocated from elsewhere. Indeed,
approaching six in ten (57%) are anticipating an increase in their budget for
the financial year 2019 to 2020. This indicates that business leaders
appreciate the need for IT in their current and future operations to the point
of allocating funding, but not always to the point of consistently aligning
with their IT counterparts.
Increasing operational efficiency
(49%), customer satisfaction (32%) and increasing revenues/sales (31%) top the
list of drivers of strategic IT change projects, demonstrating the expectations
around the business value of IT change are not being effectively driven.
Businesses need to recognise the
consequences that slowing IT spend, and ultimately, stagnating progress, could
have on their business prospects. Taking unnecessary risks could lead to the
downfall of an organisation, but in reality, spending on technology and taking
a fail-fast, calculated approach to IT risk is now a necessity.
