This month’s exclusive cover story features a fascinating insight into the procurement function at lighting giant, Signify.
A forward-thinking enterprise constantly reevaluating and adapting its operations against an ever-changing landscape, Signify has recently transformed its procurement function. And so we join Luc Broussaud, Global Head of Procurement/CPO and Arnold Chatelain, Transformation Program Director for Signify’s Procurement Organization to see why, and how, they have evolved procurement at the company.
Signify is a global organisation spread over all continents and Luc heads up the procurement function. According to Luc, he and his team no longer engage in traditional transactional procurement, but instead leverage digitalisation to deliver competitive prices as well as what they call ‘concept saving’, “Which is how we redesign or improve our product; leveraging the knowledge of our suppliers to make it cheaper, more efficient, easier to manufacture and install, and more sustainable for the planet.”
Luc joined Signify in 2018, after being the CPO of Nokia (based in Shanghai) and has always been working within procurement. He joined Signify with a broad skillset and a wealth of experience. “I joined because the people I talked to, from the COO to the CEO and CFO were all incredibly knowledgeable and passionate about procurement,” he reveals. Read the full story here!
Not only that, but we also have some incredible insights from procurement leaders at Heijmans, Datadog, HICX, DPW, ProcureCon Asia and SourcingHaus Research! Plus, the very best procurement events of 2023.
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.
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.
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 Mobile Ecosystem Forum’s SMS Protection Registry, which was developed and piloted in the UK, is now being launched in…
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The Mobile Ecosystem Forum’s SMS Protection Registry, which was developed and piloted in the UK, is now being launched in Ireland and Singapore.
The Registry significantly reduces the impact of smishing (SMS phishing) and spoofing by SMS.
In the UK, many major banks and government brands are currently being protected with 352 trusted SenderIDs registered to date. Over 1,500 unauthorised variants are being blocked on an ever-growing list, including 300 senderIDs relating to the government’s coronavirus campaign.
Government agencies, including HMRC and DVLA, are participating in this ecosystem wide anti-fraud solution which is supported by BT/EE, O2, Three and Vodafone, along with the UK’s leading message providers.
The cross-stakeholder working group has seen a significant drop in fraudulent messages being sent to the UK consumers of the participating merchants. Following the success in the UK, The Ireland SMS SenderID Protection Registry is being launched.
The Registry is also launching in Singapore as The Singapore SMS SenderID Protection Registry. With strong interest from numerous other territories, MEF expects new Registries will soon follow.
“There are millions of faked SMS sent by fraudsters trying to steal passwords every day,” says Dario Betti, CEO of the Mobile Ecosystem Forum “We need to help consumers and organisations fight back. Thanks to the collective efforts of the British mobile industry MEF has managed to show a way: a Registry for SMS short-code names.
“The fight against fraudsters is a relentless one, it will never stop. But we are happy to celebrate one successful tool created in the UK.”.
By Robert Hewitt, MB BS, PhD, Biosample Hub The UK has over 150 hospital-associated biobanks, and the function of these…
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By Robert Hewitt, MB BS, PhD, Biosample Hub
The UK has over 150 hospital-associated biobanks, and the function of these biobanks is to provide researchers with consented and carefully processed clinical samples. However, three years ago, the annual report of a UK agency called Medicines Discovery Catapult came up with a shocking finding. A survey conducted by the organisation found that 80% of SMEs (small-to-medium sized biotechs) found accessing samples from the NHS ‘unexpectedly difficult with the result that 75% imported samples from abroad’.
This is not a problem exclusive to the UK. Biotech companies everywhere in the world have great difficulty accessing high quality patient samples to support their research and development. And at the root of the problem is the simple fact that patient samples most often originate in a healthcare setting in the public sector. Biotechnology companies are in the private sector and therefore have reduced access.
Hospital biobanks
Hospital biobanks generally exist in teaching hospitals and academic centres. They are publicly-funded and are established for the purpose of supporting research in associated universities and institutes. They require dedicated staff and expensive equipment—such as liquid nitrogen freezers—so the start-up and maintenance costs are considerable. While the start-up phase may be funded by research grants, it is harder to obtain research funding for the on-going maintenance costs of these unglamorous-yet-essential core facilities. So, many biobanks survive on funding provided by their own institution. A typical hospital biobank may have 2-3 staff working extremely hard within a very tight budget to provide professionally-curated clinical samples for in-house researchers.
One way in which biobanks can develop an independent income stream is to charge a fee for the provision of patient samples. However, this must be approached with caution as it is illegal to make a profit from the sale of human tissue in many countries. So, biobanks are allowed to charge a carefully calculated cost-recovery fee.
Access to a biobank’s samples is decided by scientific and ethical committees that are populated by various institutional members (scientists, clinicians, administrators, ethicists), with the frequent addition of a patient representative. These committees judge the merits of each application for samples, and they operate according to institutional policies.
One issue that sometimes reduces the likelihood that samples will be provided to industry is the concern that some patients may not want their samples to be used by commercial organisations that make a profit from them. Whether patients react in this way is very much dependent on how matters are presented to them and whether or not the societal value of industry research is emphasised.
In many cases these biobanks are open to applications from industry, in theory at least. Biobanks of different specialities can be found in various national and regional biobank directories, but unfortunately their level of interest in working with industry is often obscure. So, we have the problem that useful biobanks are hard to find.
Biotechs and Big Pharma are very different
Sample access problems are bigger for smaller, younger biotech companies than for established pharma companies. For one thing, these pharma companies will have had many years to develop networks of hospitals supplying samples. Additionally, the fact that pharma companies conduct clinical trials gives them access to hospitals, doctors and patients. Many large pharma companies have teams of dedicated clinical sample procurement staff and their own in-house biobanks, which often dwarf those found in typical hospital biobanks.
In contrast, a small biotech company, particularly a start-up, has none of these advantages and certainly cannot afford to have staff dedicated to sample procurement.
Looking ‘abroad’
In general, the easiest way for biotech companies to obtain samples is to get them from a commercial broker. These companies have the sole focus of providing clinical samples for industry, and naturally they are driven by the need to make a profit.
Brokers generally find it difficult to obtain their samples from hospitals and biobanks in western Europe, where ethical concerns about the sale of human tissue are prevalent. Some countries in eastern Europe and parts of Asia provide a more reliable source. The USA is one industrialised country where brokers are much more accepted, with many US hospital biobanks being willing to supply brokers. The majority of brokers are based in the USA, and many of these have sample procurement operations that extend across global networks.
Scientifically-speaking, the main disadvantage of using a broker is that sample provenance may be lacking (brokers tend not to reveal their sources for business reasons) and along with this there may be uncertainty about the quality of the samples and hence the reliability of resulting research.
Encourage some practices, discourage others
It must surely be best practice for any researcher to obtain biosamples direct from source, that is, directly from the hospital biobank that collected the sample from the patient. In this way, they can have the most confidence that samples and data have been collected professionally. So biotechs should ideally obtain their samples direct from hospital biobanks.
To encourage this, we need to make it easier for biotechs and hospital biobanks to find each other. Biotechs can search a number of biobank directories to find suitable partners, but this is often a difficult approach. Many of the biobanks listed may not be open to working with industry, or may give companies a low priority. Use of biobank directories often results in a lot of disappointing false leads.
One initiative that offers a solution is the online platform, Biosample Hub. This international platform is dedicated to bringing biotechs and academic/hospital biobanks together, and its use is restricted to these two groups. It includes a directory of biobank and biotech members, a directory of sample requests and social networking features. The only reason for biobanks to be on the platform is to supply industry, so the problem of false leads is minimised. One other key aspect of the platform is that it is not-for-profit, so this overcomes the ethical concerns of many biobanks.
Another way to encourage this is to make it more attractive for hospital biobanks to work with industry. In other words, there need to be more and bigger incentives. The problem is that for many hospital biobanks, local academic researchers get top priority, other academic researchers get second priority, leaving industry at the end of the queue. This is natural, because these biobanks are established as institutional initiatives, with the purpose of serving their own institution. The focus of academic biobanks is very much on research productivity as measured by publication impact, and unfortunately industry, for reasons of intellectual property, faces restrictions about how much work it can publish and when.
The incentive of funding is certainly the most viable option for getting hospital biobanks to work with industry. Biobanks need funding and often operate on shoestring budgets. Much has been written on the subject of biobank sustainability, especially financial sustainability. One approach is for biobanks to charge industry a cost-recovery fee for its samples and also to charge a fee from additional sample processing services, such as cutting sections and extracting DNA. This approach seems to be especially well understood by French biobanks, who use the term valorisation for the process of adding and yielding value from their samples. Almost half of the biobanks that have joined Biosample Hub are French and most offer additional sample processing services. All French hospital biobanks are certified according to the French norm NF S96-900 which must also make them more attractive to industry.
Another approach is to make external grant funding of biobanks conditional on service to industry. This could be aided by making it mandatory for funded biobanks to make their sample access policies public, by requiring annual reports on sample distribution and perhaps even having industry representatives on sample access committees. Patient representatives are well accepted, so why not industry representatives?
Samples that lack provenance
New regulations are likely to have a major impact on how biotech companies source their clinical samples. An example is provided by the new European regulation governing manufacture of in vitro diagnostic devices, which comes into force on the 26th May 2022. To demonstrate conformity, makers of IVDs must show that the biospecimens used to validate their devices have undergone acceptable pre-analytic processing. This will require the sourcing of samples from biobanks that are certified to meet specific quality management standards. As a result, diagnostics companies will need to obtain samples from known sources that provide full provenance information.
This need for provenance information will put pressure on commercial brokers to change their business practices and reveal the source of their samples. One way in which brokers may mitigate this is by using binding contracts with both the provider and the requestor of samples, to prevent them from interacting independently of the broker. Of course, not all companies or biobanks will be comfortable with such restrictions.
There are technological solutions that can be used to ensure the reliability of provenance information of samples and use of these will be beneficial. The use of blockchain is one example. This digital technology allows tracking of the transfer of biospecimens from the patient donor to the researcher in a secure, transparent and ethical manner, with all transactions documented in an incorruptible shared digital ledger.
What do patients want?
In order to speed up development of new therapies, diagnostics and vaccines, do we want to allow biotech companies to have access to the best quality patient samples? Or do we want this access to be blocked for a variety of possibly short-sighted reasons? The time seems ripe for a major change in the way clinical samples are sourced by industry and by smaller biotech companies in particular. Now more than ever, as a result of the pandemic, the general public understands the importance of biotech and pharma companies.
Ericsson organised a dedicated virtual event, Ericsson Digital Unboxed 2021, for Jazz Pakistan, to share its thoughts on industry leadership…
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Ericsson organised a dedicated virtual event, Ericsson Digital Unboxed 2021, for Jazz Pakistan, to share its thoughts on industry leadership and discuss digital infrastructure.
Ericsson’s global and regional experts and thought leaders showcased the latest insights, use cases and technologies tailored to Jazz Pakistan.
During the virtual event, Ericsson shared its technology vision and updates, and also discussed the possibilities for consumer and enterprise segments. It delved into several topics revolving around creating a differentiated user experience for sports, spectrum strategies, and dedicated networks with a focus on B2B segments.
As part of the event, the latest Ericsson ConsumerLab reports were also presented and discussed. Several demos were also part of the event like Edge Compute Gaming, where low latency access can enable a better gaming experience, and Ericsson Industry Connect, a channel-ready cellular network for factories and warehouses, built to streamline ordering, installation, and management for Enterprise IT.
Abdul R. Usmani, VP of Network, Jazz said: “Digitalisation is everywhere and is now part of our daily lives. At Jazz, we aim to provide state-of-the-art end-to-end services to our customers, focused on data-driven networks as well as the need to accelerate technology advancements in the areas of AI, FinTech and digital content.
“The Ericsson Unboxed event showcased several valuable insights which will accelerate the next phase to meet the evolving demands of connectivity. We are looking forward to more insights and are confident in the next step of the digitalisation journey.”
Ekow Nelson, Vice President of Ericsson Middle East and Africa and Head of Ericsson Pakistan added: “Ericsson’s partnership with Jazz spans over many years with several recent wins and shared successes in the areas of network rollout and digital services. Our world is witnessing challenging times due to COVID-19 and connectivity has never been more critical than ever.
“At Ericsson, we endeavor to automate and accelerate our networks and technology to meet the demands of an ever-changing world. We are working closely with Jazz to provide the best possible connectivity, ensuring that Jazz networks run optimally as demand grows and the need for digitalization expedites.”
Spike in investments in medical testing, healthcare and children’s entertainment and education businesses in last three months
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Tech-led businesses, whose models have been further validated by the Covid-19 crisis, have seen unprecedented demand from investors in the last three months, according to tax-efficient platform Wealth Club. Companies which have enjoyed particularly strong demand range from those involved in medical testing and healthcare, to those focused on education and entertainment for children.
Between 6th April and the end of June, £10.8 million was invested into young innovative, EIS qualifying businesses, through Wealth Club’s platform, compared with £4.9 million in the same period last year, an increase of 110%.
EIS deals which have seen strong demand since April through Wealth Club include:
Bond Healthcare – a digital platform for the medical testing industry. A £400,000 EIS fundraising round sold out in less than a minute after going live
Acamar – the production company behind the children’s series, Bing, successful both in the UK and abroad. As well as being a global TV success, broadcast in over 120 territories, Bing is also an online phenomenon with 2.2 billion YouTube views and during lockdown were adding around 40 million a week. Acamar has raised £9.4 million through the Wealth Club platform. £1.8 million of this has been raised during the Covid crisis.
Azoomee – a global media company focusing on kids educational content that has 60 million users worldwide saw its subscriber numbers rise by 40% in March.
Gobsmack – a company delivering digital wallet technology to allow its blue-chip clients to engage and reward their customers.
Visionable – a video collaboration platform for healthcare teams, billed as the ‘Zoom for medics’, now reportedly mulling a £100 million raise to help support growth in the UK and overseas.
Sofant – Edinburgh university spinout Sofant Technologies Limited is at an advanced stage of development of a patented 5G-ready smart antenna.
Alex Davies, CEO at Wealth Club, comments: “Covid has turned even the staunchest technology luddites into online shoppers, viewers and users, meaning demand for innovative businesses, where technology is at the heart of what they do, has rocketed.
“Current demand is largely for technology-led companies whose business models have been further validated by the crisis – such as those in healthcare, online education and entertainment, and e-commerce.
“Many of these businesses were growing rapidly before the crisis. The impact of the pandemic has simply turbocharged their business models. People are being forced to learn online, have meetings online, treat patients virtually and so on. The partial adopters and the uninitiated suddenly see this as a good experience, perhaps even better than face to face. As a result, investment opportunities in businesses that facilitate these things are much sought-after.
“Unlike in the US, where there are numerous listed technology businesses for investors to get their hands on, the UK indices are very under-exposed. The FTSE 100 for instance has just 0.26% exposure to the technology sector.
“However, for experienced investors who are prepared to take more risk and invest in earlier stage unquoted businesses, there are a plethora of fantastic opportunities and the chance to potentially find the next big thing.
“The good news is that many of these opportunities qualify for EIS relief. This magnifies returns when things go well and reduces the downside when they don’t. It also keeps any gains you make out of the taxman’s hands. And with taxes likely to increase, this will be a very important consideration for many.”
Hello and welcome to another packed edition of Interface magazine. This month’s issue features exclusive articles on Swisscom, artificial intelligence and cybersecurity post-Covid-19…
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Our exclusive cover story this month centres around Sven Friedli, EVP, Head of Enterprise and Architecture at Swisscom, who discusses how Swisscom is implementing agile architecture to provide a richer customer experience.
As the leading provider of telecom services and one of the leading IT companies in Switzerland, Swisscom has a duty to ensure that the way in which its customers can access those same services and products is simple, pain-free and personal. This is a challenge for all major telcos today in that they must satisfy the modern-day telco customer, who expects the same level of seamlessness and freedom in their shopping experience as they do in their own day-to-day lives.
“The modern customer can use their services wherever they want. He or she can sit outside and do all of their daily work with a wireless device on a seamless online experience. If they want to buy a new service from Swisscom where they don’t wish to go to the shop, they can do it online or via the app,” explains Sven Friedli.
Elsewhere, we speak to Ranjit Rajan, a thought leader on the impact of digital transformation on economies, business, and the tech industry with a specialisation in the emerging markets of the Middle East and Africa. And we also hear the thought-provoking insights of Jim Logan who ponders the fear factor of AI. Plus, we list 5 top cybersecurity principles of a post-Covid world…
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
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
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.
Coeus Consulting, an award-winning independent IT advisory, today announced new research into the approaches organisations are using to drive value…
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Coeus Consulting, an award-winning independent IT advisory, today announced new research into the approaches organisations are using to drive value from their data. The report – Beyond Technology: How can Organisations drive Sustainable Value from Their Data Investments? – highlights that many organisations are potentially failing to realise the potential value of, or monetise their data, despite 74% acknowledging it as a key priority.
The research found that 80% of the large
organisations surveyed, believe accountability for data strategy rests with
technology leaders such as IT Directors, CIOs or CTOs. Additionally, only a
quarter of organisations currently elect to have a Chief Data Officer, with
even less placing accountability with others in the C-suite. Emphasis is being
placed on speed (32%), cost (28%), and competition (30%), but less so on more
fundamental underlying value, the insights it offers, or decision-makers’
ability to develop new products and services from those learnings.
According to one source, DATAVLT,
only one per cent of the data companies collect is currently analysed, and they
expect as many as 96% of businesses that exist today to fail in 10 years.
“Many investments in data and analytics have
been started from a technology perspective with little alignment to business
value or desired outcomes that can be measured against a business strategy.
Businesses need a change of mind-set and approach right across the
organisation, and the challenge is more than simply collecting data and making
it available”, commented Richard Graham, Associate Director, Coeus.
However, the survey did find that 66% of
respondents are actively trialling the use of machine learning (ML), artificial
intelligence (AI), natural language processing (NLP) and automation
capabilities. Yet, only 39% admit to widely using data lakes and warehousing,
suggesting that organisations have either not completed these activities or are
not placing enough importance on them.
“Being data-driven is an imperative for most
organisations and there is a growing trend to incubate and deploy advanced
analytics, but organisations need to ensure they have certain fundamental
capabilities in place before trying to achieve digital transformation.
There seems to be a motivation to be ‘AI first’,
perhaps driven by the perception that most organisations are already ahead in
using these capabilities, rather than getting to grips with untapped value in
existing data, and how best to make use of it” noted Graham.
The survey results highlight that there are many
obstacles to overcome before companies can begin to see meaningful benefits
from the data available through technology-led investments such as AI. Of the
top five enterprise data bugbears, the majority are business-related: the scale
and complexity of data sets (27%); governance and ownership (24%); the lack of
a data operating model (19%); regulatory compliance issues (19%); and
difficulty in integrating new technologies.
Organisations are facing tougher regulatory
environments and when asked to express their concerns about data regulations,
compliance with ethical and moral requirements was the biggest, cited by 49% of
respondents. This has obvious implications for data management, analysis, and
technology buying decisions, and the potential reputational and financial repercussions.
Sixteen per cent of respondents also stated that
a lack of expertise and skills is a major obstacle. Whilst companies are
investing in foundational skills, moving skills in-house and introducing new
roles, third parties and external contractors play a key role in enabling and
supplementing these organisations, and will continue to do so.
When asked where organisations are seeing the
biggest benefits from their data initiatives, 43% of respondents said they are
in ‘improved customer insights’, while 41% identified an improved ability to
take proactive, predictive decisions. Improved reporting’ also scored highly,
along with better management of risk and regulatory compliance (37%). However,
only 24% cited an increased ability to meet customer needs, with 20% citing a
greater ability to spot future business opportunities.
In contrast, just 12% identified attracting new
customers as a core motivation – the least favoured option on the list, this is
despite the realisation that improved customer insight could be the biggest
benefit.
“This is surprising given it’s so important in
markets that are becoming hyper-competitive. Nearly every type of business is
being disrupted by new players and a lack of customer loyalty, especially on
new digital channels. Investing in customer insights and new product
development ought to be a high strategic priority alongside consolidating
market position”, said Graham.
“Being able to seamlessly integrate data and
analytics into standard business and IT operations should be the goal of all
organisations, to unlock value in your data and information. Businesses need to
create an aligned data and business strategy that positions data as a strategic
asset, and prioritises resources to integrate data management and analytics
effectively”, Graham concluded.
You can view the full report – How can
Organisations drive Sustainable Value from Their Data Investments? here.
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.”
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
Welcome to the Winter edition of INTERFACE Magazine, our biggest yet! Our cover story this month centres around Lutz Beck,…
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Welcome to the Winter edition
of INTERFACE Magazine, our biggest yet!
Our cover story this month centres around Lutz Beck, CIO of Daimler Trucks North America, who reveals its massive digital transformation into a totally connected company… Read the latest issue here!
Beck transformed Daimler Trucks Asia
– with its brands Mitsubishi Fuso and BharatBenz – into a truly connected
company, moving the IT function front and center of its operations. This work
paved the way for Beck’s move to head up transformational change in the US.
“I was given an open field to do a lot of
these innovations here within the Daimler Trucks North America Group because
they had started certain elements but there were still a few things lacking.
That’s the reason why there is a clear task: to push innovation and transform
IT into a business value adding and future oriented organization.”
Elsewhere in the mag we also speak
exclusively to c-level executives at BT, AXA Partners, SSE, ACC and KPN
in a bumper issue of B2B insight! We also feature interviews with Lisa Moyle
from VC Innovations and Digital Banking Report’s Jim Marous and Sonia
Wedrychowitz. Plus, we list all the top events and conferences from around
the globe.
Borislav Tadic, Vice President BMS & Transformation DRC, explores how a major digital transformation of Deutsche Telekom has enabled greater…
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Borislav Tadic, Vice President BMS & Transformation DRC, explores how a major digital transformation of Deutsche Telekom has enabled greater customer experience and significant technological advancements.
Tell us what
your role is and how it fits into the wider Deutsche Telekom strategy?
I’m Vice President at Deutsche Telekom, responsible for board member support and transformation of the board area, data privacy, compliance and legal, working here in the Bonn headquarters of Deutsche Telekom Group. We as Deutsche Telekom Group are present in 50 countries and I would say are definitely a leading European telecommunications brand. We hope, after our mergers and acquisitions in the United States that we’ll become an even bigger player on a global level.
How
important is it in your position to continue to learn?
That’s a fantastic point. One thing
I try to do is constantly improve on an individual level. That includes formal
education. I have at least 10 internationally recognised certifications and I’m
currently working on my PhD in parallel to my work and I use numerous
non-formal opportunities to expand my knowledge, both in the formats offered in
the company and outside as well as through reading and keeping up to date with
the latest developments every day, every morning.
That attitude is something I try to include in our transformation programs. For example, during the past two years, we’ve up-skilled more than 1000 employees off this board area, both in Germany and internationally, in several ways. First, offering them online learning content on our intranet platform, creating awareness about the different digital courses we have in the context of Deutsche Telekom, which are focused on their profession. We also continue to learn about global technological developments, so they can understand the new trends and developments in the industry so that they can better advise and/or support their customers.
From there we went a step forward and decided not only to offer them in a digital format, which is easy to implement and easy to offer and cost-efficient but also to enable a knowledge transfer. This is through our Digital Future Campuses in Athens and here in Germany. Several hundred people and experts from different functions of our board area were brought together and we educated them in areas such as broadband development, 5G, agile working, international collaboration, diversity and many other topics which directly or indirectly contribute to their performance and to their daily jobs. Satisfaction rate on the company level was one of the best in the recent history of Deutsche Telekom, with 96 to 99% participant satisfaction with the program.
Deutsche Telekom AG
A
transformation of any kind breeds challenge, what are some of the challenges
you have faced?
It is a challenge indeed. The first aspect of the challenge is that you have to give or convey as much knowledge as possible in a relatively short time and of course to make the knowledge current because if you prepare a course around blockchain and you prepared it two years ago, today you would need a completely different base. The pace of change with regards to the content, which you create to educate someone, is very high. It’s important that you stay up to date in the preparation and delivery of these courses.
Even that aside, you have a limited budget and this limited budget has to be approved and/or aligned with our human resources area. We are working with them closely because of course they have way more transparency about the needs of every individual employee and we have of course our professional view and vision where we want to be as a group. We basically worked with our colleagues from HR and with our expert groups in identifying which areas we need to focus on because you have hundreds of areas, especially in our fast-changing, fast-paced business around digitisation and technology.
After we finalised that, we created a program and then the next challenge was how to get the best possible lecturers and best possible experts to share the knowledge, because of course, their time is limited. There are of course budget limitations and numerous other restrictions including language barriers. We tackle that by trying to find the best in-house experts in some areas and external partners for others. They have more experience in some domains that are relevant to us. Then there is the delivery.
Even if you organise a format that consists of online courses as well as the physical presence of a course for several hundred people, that’s not an easy task. It sounds like an easy task; it’s just an event with a couple of hundred people but no, this is multi-partner, multi-party interactive session with numerous choice options because not everyone gets the same program. The people choose the modules and you have to fit all of that together. These are some of the challenges we’ve hopefully successfully tackled.
How
do you ensure that your transformation is done so with the customer experience
in mind?
That was the essence of our program and it’s a great question. First, we understood that we cannot only assume what the customer wants, we need to know what the customer wants and the only way to do that is to talk to the customer. As a governance function, we went and talked to the customers. We went out and spoke with actual private customers and business customers of Deutsche Telekom and asked them: what can we, from security, from privacy, from legal, from compliance, do differently in order to make your life better and easier?
We got our feedback. It was extremely good feedback, in the sense of many concrete, actionable points we can implement. For example, one of them was to simplify terms and conditions. When you sign a contract anywhere, for any mobile service, TV service or anything else we offer, you need to read through the pages of the contract documentation. This document is written mostly with the small letters, small font, explaining what will happen in case of some emergency escalation or conflict etc. It’s written in a language that no one understands but it was always the intention of Deutsche Telekom to make it fully understandable to our customers. We were doing our own efforts but when you speak directly to the customers, he can explain to you, which paragraphs are not easily understood or interpreted.
We used that feedback to simplify the terms and conditions for our major products. We did that within a couple of months and now we have one of the best, if not the best terms and conditions document, which is now standard. This raised the trust with our customers because they know that Telekom is fully transparent and wants them to understand what they are signing and what they are changing with their contract situation. This is only one example of numerous changes we did to the direct discussions with external customers.
How
important is transparency to a company like DT?
When you look at how you can make it more transparent and when you simplify the processes and the policies, the documents, when you’re directly communicating your goals and why you are doing certain things, this raises the trust of the customers. But of course, many digital tools can also help you to raise that transparency. For example, you can do it for ethical reasons. We have been very successful in advancing customer demands through a chatbot. It became so good that some of the customers didn’t even know that they were being served by the chatbot. Because it answered all their questions in the manner that they would expect from a live person, but we still, from an ethical perspective, decided to include the sign notification saying: “You’re speaking with our digital assistant, not with a real person.”
We’ve also introduced specialised
tools both internally and externally. As an example, we have a data privacy
cockpit that enables you to log in as a customer of Deutsche Telekom and
basically see which data you have approved or are sharing with both Deutsche
Telekom and you can also click and approve or disapprove with us sharing that
data with other parties. We are very strict with that. This is one of the parts
of our unique selling proposition; we’re extremely careful with the data of our
customers. What we want to achieve is for customers to no longer need to call or
send an email to understand which data of theirs is in the system and which can
be shared, but they also can log in with their mobile or fixed device and look
and choose and change the categories at any time, through a very useful and
user friendly interface.
Around 10 years ago, through internal experiences, we realised that this could become something we are known and recognised for, and so we decided to really invest internally into data privacy, security, compliance to strengthen our legal functions, to strengthen our audit functions. We did this in order to create a system that not only gives assurance to our shareholders but also to all of our customers. We don’t do it because we must; we believe that there is clear value in data being handled in an ethical and responsible manner for our customers.
How
difficult is this with regards to DT’s presence across 50 countries?
First is that we look at all of our footprints holistically where, if we have a high standard which is not producing a significant change in the product pricing or service pricing, we look to apply it throughout the whole footprint. In the area of compliance, security, privacy and risk management, we are applying the highest standards worldwide.
The challenge here is that you have certain local changes which happen and which of course demand us to stay on the ball in that we are always in contact with our local counterparts which are responsible for these areas where the board area is active and not only upscale them, not only to make them aware of the customer demands both locally and internationally, but also to always make sure that they’re applying the latest, leanest standard and the process to keep the high levels of these services.
How
will you continue to grow and transform? Can a transformational journey ever
really end?
There is no endpoint. You’re absolutely right; the transformation will never stop and should never stop. It’s a process of continuous improvement of the organisations and individuals and customers’ demands, markets. Everything is changing, so we need to keep changing constantly. I think it’s very important to say in the sense of the role you mentioned is that you also lead by example, not only me but also my colleagues and other senior executives. They need to be aware that if we are promoting a tool to be used or a process to be simplified, we have to start with ourselves.
They’re extremely important, these change processes, because it’s not sufficient only to upscale, to implement the customer demands and to digitise and introduce digital tools. If you want the whole organisation to have a sane and a good mix of agile projects and waterfall projects, I need to show that some of my projects in the digitization context are being run agile.
What do the next 12 months look like for DT?
We’re going to focus on new skills. Let’s say that we are going to further explore what the blockchain is bringing. We are going to further explore what the changes are, not only technologically, but also the social changes related to 5G. In addition to that, we want to further explore AI and also further explore digital ethics. We are going to be active in the corporate digital responsibility domain where we, as Deutsche Telekom, are very much pioneering some of the elements here in Europe, so this is definitely going to happen.
What
makes a successful CTO?
I would say surround yourself with extremely diverse people because diversity is not only diversity in the context of having different people with different backgrounds around yourself or different religions, different genders, different ages, etc., but also diversity in the opinion context, and the context of thoughts. And when you’re surrounded by such people, try to be like a sponge.
Try to take as much input as you can to process this and put it into the context and to continue changing because if I would apply what I learned at let’s say in the university or what I’m learning now for my PhD, that might be okay for a certain period of time, but the world, technology and the market is changing with extreme pace. So, you have to be fully aware that this will continue changing so your adaptability is the key. Your curiosity is the key and if you keep that, I’m sure that you’re basically ensuring that you’ll be successful today and tomorrow.
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.
This month’s cover centres around Staffordshire University, one of the UK’s emerging tech powerhouses. We talk to Andrew Proctor, Director of Digital Services, at the university who talks about the massive digital transformation he has overseen there.
For a sector steeped in tradition, it’s perhaps not
surprising that higher education has taken longer than most industries to wake
up to the digitisation of operations and offerings that have disrupted
virtually every other market. However, with rising customer expectation linked
to increased fees, and a battle to establish points of differentiation in a
highly competitive marketplace, higher education has had to respond to the
changing needs of the client, and nowhere is that more evident than at
Staffordshire University.
Andrew Proctor, is the man who has spearheaded a
massive digital revolution in an attempt to truly harness digital. “If you
compare higher education to a lot of the modern digital era organisations or
companies, universities can be obsessed with physical assets such as buildings;
a new building being a sign of a healthy university,” he explains. “Now, I’m
not saying that buildings aren’t a part of that future, they absolutely are,
but we are developing what we call a ‘clicks and mortar’ strategy that delivers
the best of the physical and the digital. It’s that harmony between your
physical infrastructure and your online presence.”
Elsewhere,
there is a highly revealing interview with EnterSolar’s Edgar
Lim, Vice President of Technology and Procurement, who explores how a sound
procurement philosophy achieves growth in a “solar-coaster” market.
We
also hear from Craig Stewart, Vice President of Product Management at
SnapLogic, who addresses how tech can provide some of the solutions to the
global skills gap. We also look at the advent of automated data centres and
reveal the most influential blogs and resources for CIOs.
Plus,
lots, lots more, including our guide to the world’s best events and conferences.
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.
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.”
“One answer to the skills gap in UK tech? Women.” This week, the Digital Insight is joined by Rachel McElroy,…
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“One answer to the skills gap in UK tech? Women.” This week, the Digital Insight is joined by Rachel McElroy, Sales and Marketing Director at cloud specialists Cranford Group, who discusses how women could provide the answer to the skills shortage in the UK’s technology sector.
IT service provider Getronics has formed a technology partnership with HeleCloud, a leading AWS Consulting and Managed Services partner for…
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IT service provider Getronics has formed a technology partnership with HeleCloud, a leading AWS Consulting and Managed Services partner for UK and EMEA , to enable the design, delivery and management of leading-edge AWS-based solutions for Getronics customers through a ‘centre of excellence’. While adoption of cloud services is growing rapidly among businesses across Europe, associated cloud skills are scarce.
HeleCloud, one of the UK’s fastest growing start-ups, provides businesses with the skills, knowledge and experience they need on-tap. Initially the partnership will focus on Europe, with Getronics’ sizeable presence in European enterprise and midmarket businesses affording access to customers through existing relationships, while targeting the following industry sectors: retail, travel and transportation, financial services, and healthcare. Leveraging HeleCloud’s AWS technical knowledge and experience, the two companies will create solutions designed specifically for each vertical sector, augmenting Getronics’ existing portfolio of services by enabling their delivery on AWS.
Solutions will include Technology Consulting, Managed Services, and Technology Training. Getronics Group Vice Chairman, Mark Cook, commented: “There is significant customer interest in and momentum towards public cloud services on the AWS platform. In adding AWS capabilities we are adding choice for our customers, which is absolutely the right response to their interest and public cloud’s current momentum.” Technology offerings will be delivered from the new Cloud Centre of Excellence, organised into seven areas of competence: Cloud Roadmap & Migration Cloud Security, Compliance & Governance Business Continuity & Disaster Recovery Big Data & Analytics Managed Infrastructure Managed Security & Compliance Cloud Technical Design Authority.
Steve Rosa, Getronics Vice President for Cloud, Infrastructure and Security, added: “Getronics provides genuinely end-to-end cloud-based solutions: we advise our customers on the best locations for their workloads, we run the transformation projects including application modernization, and we deliver the management of the full stack – all wrapped up in our security and compliance services.”
Dob Todorov, CEO and Chief Cloud Officer of HeleCloud said: “We are excited to establish this partnership with Getronics – one of the most successful and fast growing global IT business of our time, with impressive capabilities across a range of platforms. Together, we are much more than the sum of the parts, and we’ll innovate and build AWS capabilities to the benefit of Getronics customers.” While adding AWS capabilities, Getronics remains a Microsoft Azure partner, serving customers committed to Microsoft technologies or intent on establishing multi-vendor presence. Getronics also delivers private and hybrid cloud solutions from its own hosted private cloud platforms in 19 data centres across Europe coupled with investments running across North America.
