Business Chief USA July 2019
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HHH <strong>USA</strong><br />
EDITION<br />
JULY <strong>2019</strong><br />
www.businesschief.com<br />
Balancing<br />
tradition with<br />
transformation<br />
Your Safety...Our Commitment<br />
Putting safety<br />
and sustainability<br />
first<br />
The next generation<br />
of data center<br />
CEO Chris Downie on the importance<br />
of flexibility and customer centricity<br />
City Focus<br />
Zooming in on<br />
thriving startups<br />
TOP 10<br />
Manufacturers<br />
in the <strong>USA</strong>
FOREWORD<br />
W<br />
elcome to the <strong>July</strong> issue of<br />
<strong>Business</strong> <strong>Chief</strong> <strong>USA</strong>.<br />
This month’s cover story features<br />
Flexential, the data center services<br />
company driving the digital transformation<br />
of its clients’ data infrastructure.<br />
CEO Chris Downie discusses the key<br />
differentiators putting Flexential<br />
ahead of the<br />
competition as a flexible<br />
and essential data center<br />
partner with a focus on<br />
customer success.<br />
Downie, a passionate<br />
lover of rugby and business<br />
solutions alike, carries the<br />
cooperative, strategic and spiritual<br />
ethos of the sport through his role –<br />
with great success thus far. “Rugby<br />
is a sport where strategy and teamwork<br />
are key to how you execute plays.<br />
At Flexential we also focus on strategy<br />
and teamwork.”<br />
Chris Downie,<br />
CEO, Flexential<br />
Also featured in this month’s issue is<br />
Bartell Drugs, the oldest family-owned<br />
drug store chain in the US. We sit down<br />
with Kari Escobedo, SVP of IT, to find<br />
out how the 130 year old company<br />
walks the line between the traditional<br />
and the futuristic, always delivering the<br />
highest quality of service to its customers.<br />
This month’s City Focus explores<br />
Dallas, investigating the thirdlargest<br />
city in the Lone Star<br />
State and examining<br />
three startups working<br />
to change the lives of<br />
its citizens for the better.<br />
Our Top 10 ranks the<br />
country’s largest<br />
manufacturers.<br />
Make sure to check out our<br />
exclusive features on Cashco Financial,<br />
Geodis, Heath Consultants and<br />
Canadian Western Bank.<br />
Enjoy the issue!<br />
Harry Menear<br />
harry.menear@bizclikmedia.com<br />
03<br />
www.businesschief.com
innovation<br />
in practice<br />
Sprint and Amdocs have been key partners for over two<br />
decades, delivering together innovative solutions to make<br />
Sprint the success it is today.<br />
Our joint accomplishments include modernizing billing<br />
support systems, introducing a groundbreaking<br />
customer care system, providing cost-effective<br />
payments processing and the optimization of<br />
current and future network capabilities.<br />
This strong Sprint-Amdocs partnership has<br />
won widespread industry recognition, including<br />
the 2017 Global Telecoms <strong>Business</strong> Award for<br />
Consumer Service Innovation.<br />
Visit www.amdocs.com to learn more about<br />
how you can partner with Amdocs to<br />
innovate successfully.<br />
www.amdocs.com<br />
© <strong>2019</strong> Amdocs. All rights reserved.
<strong>USA</strong><br />
EDITION<br />
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EDITOR-IN-CHIEF<br />
HARRY MENEAR<br />
MANAGING EDITOR<br />
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05<br />
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PROJECT DIRECTORS<br />
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CONTENTS<br />
14<br />
Customer-centric<br />
investment in data<br />
center infrastructure<br />
32<br />
Using collaboration<br />
to unlock the power<br />
of the ecosystem<br />
How is digital<br />
transformation<br />
revolutionising<br />
the supply<br />
chain sector?<br />
44
56<br />
The ELEPHANT<br />
in the digital room:<br />
unplanned<br />
downtime<br />
66<br />
74<br />
City Focus<br />
DALLAS<br />
84<br />
Social impact:<br />
balancing profit<br />
and purpose<br />
TOP 10<br />
Manufacturers<br />
in the US
CONTENTS<br />
100<br />
Bartell Drugs<br />
120<br />
Heath<br />
Consultants<br />
134<br />
GEODIS
148<br />
Canadian<br />
Western Bank<br />
168<br />
Cashco<br />
Financial
CONTENTS<br />
182<br />
Ingram Micro<br />
196<br />
University of Toronto<br />
Mississauga
224<br />
Service New<br />
Brunswick<br />
210<br />
Town of<br />
Caledon<br />
238<br />
ANDRITZ
14<br />
Flexential:<br />
Customer-centric<br />
investment in<br />
data center<br />
infrastructure<br />
WRITTEN BY<br />
MARCUS LAWRENCE<br />
PRODUCED BY<br />
TOM VENTURO<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
15
FLEXENTIAL<br />
CEO Chris Downie discusses<br />
the key differentiators putting<br />
Flexential ahead of the<br />
competition as a flexible and<br />
essential data center partner<br />
with a company-wide focus<br />
on customer success.<br />
16<br />
H<br />
aving combined in August 2017, Peak10<br />
and ViaWest rebranded as Flexential in<br />
January 2018 to highlight the organization’s<br />
commitment to being both flexible and essential<br />
to its IT customers. Since then, the data center<br />
and hybrid IT operator has continued its forbears’<br />
strong expansion methodology and commitment to<br />
the customer experience. “We spend a ton of time<br />
making sure that we’ve got a customer success<br />
culture – an organization-wide strategy that puts<br />
customers at the top,” says CEO Chris Downie.<br />
A seasoned data center industry veteran, Downie<br />
is also a passionate rugby fan with both college and<br />
postgraduate playing experience. He carries the<br />
cooperative, strategic and spiritual ethos of the<br />
sport through his role as chief executive – with<br />
great success thus far. “Rugby is a sport where<br />
strategy and teamwork are key to how you execute<br />
plays – you have to pass backwards to advance<br />
your team and there are no breaks between plays.<br />
At Flexential we also focus on strategy and teamwork.<br />
JULY <strong>2019</strong>
Flexential expanded its data<br />
center to 142,000 sq. ft. in<br />
Atlanta’s technology corridor<br />
17<br />
40<br />
Data centers<br />
1,000<br />
Approximate number<br />
of employees<br />
21<br />
Domestic and<br />
international markets<br />
www.businesschief.com
FLEXENTIAL<br />
18<br />
“We spend a ton<br />
of time making<br />
sure that we’ve<br />
got a customer<br />
success culture<br />
– an organizationwide<br />
strategy that<br />
puts customers<br />
at the top.”<br />
—<br />
Chris Downie,<br />
CEO, Flexential<br />
Our brand is anchored in the concept,<br />
‘The Power of People in a Technical<br />
World ® , which for us is all about making<br />
our customers successful. Their<br />
success is infused in everything we do.”<br />
Having been at the heart of the data<br />
center industry for more than ten years,<br />
Downie has seen firsthand how it has<br />
become a vital component of modern<br />
business. In light of today’s demands<br />
for capacity, security, redundancy,<br />
reliability and recovery, flexibility and<br />
network expansiveness, Flexential has<br />
invested heavily in establishing itself as the<br />
best option for companies undergoing<br />
digital transformation and expansion<br />
across the US. The sheer volume of<br />
data being created and being<br />
digitized is set to necessitate continuous<br />
upgrades to capacity as more<br />
data-heavy technologies take root.<br />
“There are massive amounts of data<br />
being generated for technology, such<br />
as artificial intelligence (AI) and a whole<br />
host of other applications requiring a<br />
data center to function effectively,” says<br />
Downie. “Having the capacity for this<br />
accelerating growth, and the exponential<br />
amount of information that needs<br />
to be stored, contained and kept safe<br />
for the rest of time, is massive for our<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘FLEXENTIAL FLEXANYWHERE TM SOFTWARE-DEFINED NETWORK’<br />
19<br />
strategy going forward.” With 40 data<br />
centers across 21 US markets, Flexential<br />
has not only the capacity but also the<br />
geographical reach to set it apart from<br />
a significant chunk of the competition.<br />
“Having the ability to offer our products<br />
across a broad geographical reach<br />
allows us to get in front of demand<br />
across the country,” adds Downie.<br />
The company recently announced<br />
expansions to its facilities in Portland,<br />
Nashville, Charlotte and Atlanta.<br />
Highlighting customer demand for<br />
solution providers with broad capabilities,<br />
Downie is enthusiastic about<br />
Flexential’s ability to go beyond the<br />
traditional expectations of a data<br />
center operator. Enterprises increasingly<br />
operate in a hybrid world where their<br />
infrastructure is located in many<br />
physical locations and in a variety<br />
of forms, making Flexential an ideal<br />
choice as the home base for a customer’s<br />
hybrid IT operations. “We can provide<br />
our customers a variety of colocation<br />
and cloud infrastructure choices,<br />
helping them manage and protect the<br />
data that fuels their business, and most<br />
importantly interconnect that infrastructure<br />
in a highly scalable, secure,<br />
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FLEXENTIAL<br />
22<br />
and reliable fashion,” he says. “Our ability<br />
to also offer professional services that can<br />
solve the challenges that our customers<br />
face serves to make their engagement<br />
with Flexential even more meaningful.”<br />
Flexential’s broad utility set is further<br />
enhanced by its stellar network<br />
capabilities, and its aggressive investment<br />
strategy in this area is reaping<br />
dividends. As more and more enterprises<br />
are considering architecture for edge<br />
and distributed computing, as well as<br />
machine learning and artificial intelligence<br />
toolkits to analyze how data is<br />
being consumed and where, Flexential<br />
is working to help them “future proof”<br />
their infrastructures. “One of our critical<br />
differentiators is the network; the<br />
investments we’ve made in resources<br />
across our portfolio enables our<br />
customers to federate their data and<br />
resources anywhere and everywhere<br />
they need to.”<br />
A significant facet of Flexential’s<br />
network platform is its access to the<br />
Asia Pacific market via subsea cables.<br />
Hosting direct access to three<br />
trans-Pacific subsea cables, supplying<br />
JULY <strong>2019</strong>
connectivity between Asia and the<br />
West coast of the US offers a huge<br />
opportunity to Flexential’s customers<br />
and makes Flexential more competitive<br />
abroad. “The New Cross Pacific<br />
(NCP) cable has some of the largest<br />
cloud and communications providers<br />
in Asia as consortium members, and it<br />
extends to China, Taiwan, Korea and<br />
a whole host of other countries,” says<br />
Downie. “We also host the Hawaiki<br />
subsea cable which extends to<br />
Australia and New Zealand. In hosting<br />
those cables we have an entry point<br />
to massive data sets, and this puts us<br />
in a position to assist consortium<br />
members, and other customers that<br />
want to be near those cables, to<br />
complete the solutions they’re looking<br />
to build in the US.”<br />
Flexential has also been actively<br />
investing in capitalizing on the<br />
opportunities afforded by its size and<br />
geographic reach, namely the ability<br />
to communicate with larger customers<br />
that make decisions across multiple<br />
EXECUTIVE PROFILE<br />
Chris Downie, CEO<br />
Chris leads Flexential as a proven <strong>Chief</strong> Executive Officer<br />
with deep expertise in the economics, delivery and<br />
operations of the data center and hybrid cloud businesses.<br />
He is responsible for setting and managing the strategic<br />
priorities that drive profitable growth. Chris joined the<br />
company in 2016. Prior to Flexential, Chris was the <strong>Chief</strong><br />
Executive Officer of Telx Holdings, a leading<br />
interconnection and data center solutions provider based<br />
in New York City, New York. He has more than 25 years<br />
of combined executive leadership experience in finance<br />
and operations, working for Daniels & Associates,<br />
BroadStreet Communications and Motient Corporation.<br />
Chris holds a B.A. degree in History from Dartmouth<br />
College as well as a M.B.A. degree in International<br />
<strong>Business</strong> from New York University.<br />
23<br />
www.businesschief.com
CLICK TO WATCH: ‘THE NEXT BIG THING IS HERE:<br />
ATLANTA – ALPHARETTA EXPANSION’<br />
25<br />
geographies and themselves have<br />
demanding requirements. “You can call<br />
it wholesale, you can call it multi-megawatt<br />
transactions, but it’s really serving<br />
large enterprises and large technology<br />
companies with greater deployments<br />
than your average company.” Flexential<br />
has been investing in its internal capabilities<br />
to facilitate such deals with growing<br />
success. “We recently completed a<br />
3MW deal in one of our western markets,<br />
with a large SaaS provider that’s<br />
focused on data storage; a hyper-scaler<br />
in terms of their global growth. We have<br />
also secured a 1.5MW contract with a<br />
financial institution at one of our<br />
southeastern facilities, and that’s<br />
going to become one of the largest<br />
processing centers for financial<br />
trading transactions in the world.”<br />
The attractiveness of Flexential’s<br />
offering is further compounded by its<br />
leading security and recovery capabilities,<br />
aiming to maximize peace of mind<br />
for customers. “Security starts with<br />
the physical security of the data center<br />
itself,” says Downie. “We’ve been very<br />
focused on meeting and maintaining<br />
compliance standards across a<br />
number of verticals in our domain.<br />
www.businesschief.com
FLEXENTIAL<br />
26<br />
111,000+ square-foot data<br />
center with unprecedented<br />
PUE of 1.3 at full capacity<br />
JULY <strong>2019</strong>
“Our ability to offer Professional<br />
Services that can solve the<br />
challenges our customers<br />
face, serves to make their<br />
engagement with Flexential<br />
even more meaningful.”<br />
—<br />
Chris Downie,<br />
CEO, Flexential 27<br />
www.businesschief.com
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We also have a host of security functions<br />
built into our network to ensure data<br />
running through it is safeguarded,<br />
encrypted and so forth. The network<br />
is also a foundational element of our<br />
Disaster Recovery as a Service<br />
(DRaaS) and recovery cloud functions.”<br />
In April <strong>2019</strong>, Flexential was recognized<br />
by Forrester Research as one of<br />
eight leading contenders in the DRaaS<br />
space, receiving the highest possible<br />
rating for Forrester’s core DRaaS<br />
offerings criteria. In June, Flexential<br />
was honored by Gartner and included<br />
in the <strong>2019</strong> Gartner Magic Quadrant for<br />
DRaaS. At the time of writing, seven of<br />
Flexential’s facilities are equipped with<br />
its disaster recovery capabilities, with<br />
more on the horizon.<br />
Looking forward, Flexential continues<br />
to seek innovation and opportunities<br />
to enhance its customer offering.<br />
Downie offers Edge computing as<br />
an example of a customer trend that<br />
Flexential is keen to accommodate.<br />
“Data is being generated everywhere,”<br />
he says, citing autonomous vehicles<br />
and connected vending machines as<br />
examples of data generators at the<br />
edge of the network. “Those data sets 29<br />
www.businesschief.com
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are coming from very far afield, so<br />
having the ability to capture, process<br />
and store them close to the given use<br />
case is becoming increasingly important.<br />
When it comes to the information<br />
generated by a self-driving car, the data<br />
needs to be processed by the car itself<br />
but it’s also sending huge amounts to<br />
local processing centers that need to<br />
be proximate to wherever the car is.”<br />
Flexential consistently evaluates<br />
areas for improvement in its environments,<br />
particularly as the needs and<br />
expectations of the customer continuously<br />
evolve. “We actively monitor how<br />
our customers are consuming power,<br />
the scale at which they’re consuming<br />
network resources, and whether there<br />
is customer interest in different<br />
network technologies.”<br />
Downie adds that Flexential is<br />
equipped with the expertise to make<br />
the right call when it comes to such<br />
investments and in the personalization<br />
of its service offering. “We’re firm<br />
believers that the cloud is not the right<br />
home for all workloads, and helping our<br />
customers appreciate where workloads<br />
should reside is really important. As IT<br />
environments become more complex,<br />
our customers need help making the<br />
right choices. The challenge for<br />
operators is being prepared to have<br />
that conversation with customers.”<br />
Flexential is certainly prepared,<br />
empowered by Downie’s team-oriented<br />
and strategic leadership, and it is clear<br />
that such preparation in each facet of<br />
its operations will continue to grow.<br />
31<br />
www.businesschief.com
LEADERSHIP<br />
32<br />
Using collaboration<br />
to unlock the power<br />
of the ecosystem<br />
Sean Thompson, SVP <strong>Business</strong> Network<br />
and Ecosystem at SAP Ariba and SAP<br />
Fieldglass, shares his insights into the<br />
power of collaboration and SAP Ariba’s<br />
new partnership with American Express<br />
WRITTEN BY HARRY MENEAR<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
33
LEADERSHIP<br />
34<br />
Progress is a cyclical journey. Creation leads<br />
to hype, which leads to a bubble, followed by<br />
a return to earth and, finally, true adoption and<br />
advancement of the market. With the perspective<br />
of over 20 years in the business intelligence<br />
leadership space, Sean Thompson, Senior Vice<br />
President of <strong>Business</strong> Network and Ecosystem at<br />
SAP Ariba and SAP Fieldglass, is familiar with the<br />
process. Having witnessed and been deeply<br />
involved in major technological cycles like natural<br />
language processing, ecommerce and now the<br />
Big Data boom, Thompson is well aware of the key<br />
strategies that help push the envelope and work<br />
towards lasting growth. “As the gray haired guy in<br />
the room, looking around and having seen different<br />
cycles unfold, it’s an amazing time to be alive and<br />
in the software business,” he reflects. “My career<br />
has been a journey that has, in many ways, come<br />
full circle.” We sat down with Thompson to discuss<br />
a career spent at the forefront of business<br />
intelligence, and how SAP Ariba’s new partnership<br />
with American Express highlights one of his core<br />
teachings: embracing collaboration to unlock the<br />
power of the ecosystem.<br />
Thompson’s own entry into the software<br />
ecosystem began in the early 1990s at professional<br />
services giant Deloitte. “Back then, process<br />
re-engineering was all the rage,” he recalls. “We were<br />
consultants helping companies figure out their<br />
business processes and how to make them more<br />
JULY <strong>2019</strong>
35<br />
efficient.” Thompson took to this<br />
prototypical form of digital<br />
transformation with even greater<br />
enthusiasm in 1995, when he moved<br />
to Seattle and was assigned to the<br />
installation of a then lesser-known<br />
business intelligence (BI) platform at<br />
Microsoft. “My boss and I later laughed<br />
about the fact that we had no idea<br />
what SAP was,” recalls Thompson.<br />
He quickly recognized the power of<br />
SAP to build connections and facilitate<br />
an interconnected business. “It was a<br />
pleasure to help companies leverage<br />
www.businesschief.com
LEADERSHIP<br />
36<br />
“It was a pleasure<br />
to help companies<br />
leverage software<br />
and technology to<br />
change the way they<br />
did things, to drive<br />
true collaboration”<br />
—<br />
Sean Thompson,<br />
SVP, <strong>Business</strong> Network and Ecosystem<br />
SAP Ariba and SAP Fieldglass<br />
software and technology to change<br />
the way they did things in order to<br />
drive true collaboration,” remembers<br />
Thompson, who wasted no time in<br />
telling his boss that he wanted to fully<br />
commit to working with SAP’s<br />
products, later going on to run<br />
Deloitte’s Northwest SAP practice.<br />
The years that followed saw<br />
Thompson work with multinational<br />
market leaders like Microsoft, as<br />
well as serving on the boards and<br />
executive teams of groundbreaking<br />
startup firms. Always passionate about<br />
the potential applications of new<br />
technology, in 2012 he co-founded<br />
a natural user interface company called<br />
Nuiku with Barry Padgett, a longserving<br />
executive at Concur (bought<br />
by SAP in 2014 for $8.3bn). Thompson<br />
and Padgett quickly became friends<br />
and collaborated over the next few<br />
years on natural language interfaces<br />
for sales ERPs. “Think of it as Siri for<br />
Salesforce,” explains Thompson. The<br />
mass adoption of the smartphone and<br />
the introduction of automated natural<br />
language assistants into products like<br />
the iPhone signalled to Thompson a<br />
new cycle of technological adoption.<br />
“We started a company that was based<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘DELOITTE STREAMLINES ITS PROCUREMENT PROCESSES<br />
AS PART OF ITS DIGITAL TRANSFORMATION’<br />
37<br />
on the concept of taking that paradigm<br />
to the enterprise. My experience<br />
installing SAP systems and being<br />
at Microsoft was always that in the<br />
enterprise, when we go to work,<br />
the experience we have with the<br />
applications we use at work is not<br />
nearly the delight that we have as<br />
a consumer,” he says. Padgett and<br />
Thompson built up Nuiku for five years<br />
before selling the company, but their<br />
collaboration was fated to continue.<br />
“In the spring of 2016 I, after the sale<br />
of Nuiku, I was thinking about what<br />
the next project was going to be when<br />
I got a call from my buddy Barry, who<br />
had just been appointed as president<br />
of the SME business unit at SAP,”<br />
recalls Thompson. “He said ‘there’s<br />
nobody that I would want to go on this<br />
adventure with more than you’.<br />
Thompson joined as CRO, and just over<br />
18 months later, the pair moved over to<br />
SAP Ariba. “That’s where the job came<br />
full circle. Procurement is near and<br />
dear to my heart, because it’s where<br />
I originally fell in love, in terms of the<br />
concept of saving money to fund core<br />
systems implementation.”<br />
The move couldn’t have come at<br />
www.businesschief.com
LEADERSHIP<br />
38<br />
a better time for Thompson, who sees<br />
SAP Ariba as at the forefront of two<br />
major trends in the business<br />
intelligence space: data and<br />
collaboration. “At Ariba, we think a lot<br />
about it. We have a treasure trove of<br />
data – $3trn in annual commerce that<br />
flows through us. The technology<br />
is available, the computing power is<br />
available, we have the data and now,<br />
all of a sudden, I think we are poised<br />
to provide businesses with insight into<br />
enterprise performance that is similar<br />
to the way Google provides insight into<br />
search,” he enthuses. “It’s just a matter<br />
of good old-fashioned execution.”<br />
The power of the information<br />
revolution, Thompson believes, lies<br />
in its ability to further facilitate<br />
collaboration between enterprises<br />
and customers, enterprises and<br />
one another, buyers and suppliers –<br />
the entire ecosystem. “In the past,<br />
collaboration was point-to-point.<br />
Now, at Ariba, we’re approaching this<br />
as a network to achieve true business<br />
collaboration. We’re breaking down<br />
the silos and fostering more<br />
collaborative relationships, in terms of<br />
being able to have companies interact<br />
with each other, as if they were within<br />
JULY <strong>2019</strong>
the same four walls – within the same<br />
firewall, if you will,” he explains.<br />
Thompson and Padgett have, over<br />
the past 18 months, changed the<br />
course of SAP Ariba, redirecting the<br />
business towards the promotion of the<br />
business ecosystem. “The Ariba you<br />
knew a year ago is very different to<br />
the Ariba of today,” he says. “We’ve<br />
changed our strategy and culture,<br />
helping everybody within the company<br />
understand that if we are open and<br />
embrace the third party ecosystem<br />
and the creative genius that can come<br />
from that, amazing things can happen.”<br />
One of the first steps that Ariba is<br />
pursuing in its campaign to unlock the<br />
power of the ecosystem is rebalancing<br />
the buyer-supplier relationship. “The<br />
buyer has become the hero, to a point<br />
where we’ve spent so much time<br />
building value for them that we’ve left<br />
the supplier on the side of the road<br />
with their suitcase wondering what<br />
their value is to the network,” admits<br />
Thompson. As such, improving value<br />
proposition for the supplier is a key<br />
element of Ariba’s strategy.<br />
Announced in April <strong>2019</strong>, SAP<br />
Ariba’s new partnership with American<br />
Express will, among other things, work<br />
39<br />
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LEADERSHIP<br />
40<br />
to rebalance the buyer-supplier<br />
relationship throughout the<br />
procurement process. “In the corporate<br />
space, the single use account virtual<br />
card is a very compelling offering, which<br />
allows a buyer, through integration of<br />
Ariba and American Express’ systems<br />
to generate a single use account<br />
authentication or authorization key<br />
from the virtual card provider,” explains<br />
Thompson. “The buyer is able to<br />
leverage virtual card protection and<br />
efficiency. At the time of purchase order<br />
(PO), the buyer creates a PO, attaches<br />
their virtual card, and the supplier pays<br />
using that.” Value is created for the<br />
supplier as they are paid at the time<br />
of order, rather than having to invoice<br />
“We’re breaking<br />
down the silos<br />
and fostering<br />
more collaborative<br />
relationships”<br />
—<br />
Sean Thompson,<br />
SVP, <strong>Business</strong> Network and Ecosystem<br />
SAP Ariba and SAP Fieldglass<br />
the buyer, which saves time and<br />
reduces error. Thompson views the<br />
American Express partnership as a<br />
collaborative win that is enabled by,<br />
and will enable, further data based<br />
digital projects. “About half of our<br />
buyers are also American Express<br />
corporate card users,” he says.<br />
“On the supplier side, there’s also<br />
an opportunity for us to offer loans<br />
and financing to suppliers through our<br />
Amex partnership. The more we know<br />
JULY <strong>2019</strong>
COMPANY BIOS<br />
SAP Ariba is how companies<br />
connect to get business done.<br />
On the Ariba Network, buyers<br />
and suppliers from more<br />
than 3.8mn companies and<br />
190 countries discover new<br />
opportunities.<br />
American Express is a global<br />
services company, providing<br />
customers with access to<br />
products, insights and<br />
experiences that enrich lives and<br />
build business success. Learn<br />
more at americanexpress.com<br />
41<br />
about suppliers, the more the financial<br />
institutions like American Express<br />
knows, we will be working with them<br />
to offer financing opportunities for<br />
suppliers outside of the normal<br />
payment process.”<br />
Going forward, Thompson is<br />
confident that SAP Ariba’s early<br />
embrace of the open ecosystem will<br />
see it in good stead. “We will have<br />
an open approach and the different<br />
relationships that we have will each<br />
play a unique role, if you will, in that<br />
open ecosystem. Ultimately, it’s about<br />
choice. Buyers will be able to choose<br />
the financial institution that they want to<br />
work with and, if we do it right at Ariba,<br />
we’ll be able to shape the ecosystem<br />
around us for years to come.”<br />
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TECHNOLOGY<br />
HOW IS DIGITAL<br />
TRANSFORMATION<br />
REVOLUTIONISING<br />
44<br />
THE SUPPLY<br />
CHAIN SECTOR?<br />
Vivek Wikhe, Domain Expert of Retail and Supply<br />
Chain at LatentView Analytics, discusses the<br />
future of supply chain management and the<br />
impact of digital transformation<br />
WRITTEN BY VIVEK WIKHE<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
45
TECHNOLOGY<br />
All over the world, supply chains are disrupted<br />
by the advance of technology and<br />
leaders must rethink their strategies.<br />
<strong>Business</strong> <strong>Chief</strong> caught up with LatentView’s<br />
Vivek Wikhe to find out how organisations can<br />
make the most of digital disruption to best serve<br />
the end consumer.<br />
46<br />
Why must companies rethink their supply<br />
chain strategies in the age of digital<br />
transformation?<br />
There are major cascading factors contributing<br />
to companies rethinking their supply chain strategies<br />
in the age of digital transformation. First,<br />
the demand side has changed rapidly. Today,<br />
there are more channels and touchpoints than<br />
ever before, which all serve different needs<br />
along the customer journey. This has resulted in<br />
a migration away from the way that demand has<br />
traditionally been generated. Invariably, it is the<br />
ability to service and optimise these new<br />
channels that allows companies to differentiate<br />
and gain a competitive edge. Organisations are<br />
no longer sure of the costs and margins in each<br />
channel that touches consumers, and are still<br />
figuring out which channels they need to<br />
service and promote in the digital era. Ensuring<br />
profitable margins across channels requires<br />
a well thought out supply chain strategy according<br />
to a company’s customer base and an<br />
JULY <strong>2019</strong>
“Ultimately, all organisations<br />
across industries must<br />
rethink their supply chain<br />
strategies as the digital<br />
era continues moving<br />
towards the diversification<br />
of channels”<br />
—<br />
Vivek Wikhe,<br />
Domain Expert of Retail and Supply Chain,<br />
LatentView Analytics<br />
47<br />
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TECHNOLOGY<br />
48<br />
optimised channel mix. Ultimately, all<br />
organisations across industries must<br />
rethink their supply chain strategies as<br />
the digital era continues moving towards<br />
the diversification of channels.<br />
What are some immediate steps<br />
that need to be taken in order for<br />
companies to maximise profitability<br />
in their supply chains?<br />
Buying behavior is moving towards more<br />
nebulous attribute-based purchases.<br />
Instead of consumers focusing on<br />
a specific brand, which is easier to<br />
predict based on demographics, (for<br />
example, purchasing Nike sneakers),<br />
they will typically begin their shopping<br />
journey by searching online for certain<br />
attributes and features that they want<br />
(“stylish white sneakers”).<br />
Organisations need to tune their<br />
supply chains to reflect this shift. Instead<br />
of serving a target market based on<br />
demographics, supply chains must take<br />
into account a larger market brought<br />
about by the digital era. Supply chains<br />
JULY <strong>2019</strong>
should evolve to fulfillment chains, which<br />
can serve multiple channels profitably.<br />
The first step to maximising profitability<br />
is to get a clear picture of order costs<br />
incurred in every channel. This is a complex<br />
problem with multiple, co-dependent<br />
factors. It gets complex because<br />
the costs need to be predicted to ensure<br />
an enterprise has a profitable order<br />
fulfillment scenario. The analysis of the<br />
cost structure and visibility to them is<br />
the first step to maximise profitability<br />
for supply chains.<br />
What are the challenges that enterprises<br />
face as they move to digitise<br />
their supply chain, and what are<br />
a few best practices to overcome<br />
these challenges?<br />
The main challenge is that due to the<br />
changing nature of modern consumer<br />
supply and demand, supply chains need<br />
to get increasingly more agile and more<br />
in tune with short-term planning. Even<br />
traditional industries need to stay abreast<br />
of quickly developing consumer trends<br />
and desires. For example, food and<br />
groceries are a traditional and staple<br />
category. However, today, there are<br />
trends in food that pop up quickly, giving<br />
traditional consumer buying behavior<br />
a very short-term strength. Many categories<br />
overall are moving towards the<br />
shorter-term life cycles, and enterprises<br />
need to move to reflect that as well,<br />
and become leaner and more agile.<br />
How does having better data strategy<br />
create greater supply chain efficiency?<br />
So much of demand is influenced by<br />
what consumers are seeing online - you<br />
essentially can predict what consumers<br />
49<br />
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TECHNOLOGY<br />
50<br />
are going to buy by having strong<br />
insights into data on what influences<br />
customer behavior. For example, a few<br />
years back, Amazon became famous<br />
for predicting demand. In fact, they<br />
were so good at it, that they were<br />
shipping goods before the customer<br />
even purchased them.<br />
All companies need to have a view of<br />
the latest technology for predicting<br />
customers purchasing behavior. As<br />
buying cycles continue to grow shorter,<br />
there is no longer time to procure and<br />
supply a product without advance<br />
preparation. Ultimately, in order to not<br />
miss out on profitable opportunities,<br />
and to have a more focused organisation<br />
of the supply chain, a modernised<br />
data strategy that involves predictive<br />
analytics for both the supply and<br />
demand sides is necessary. A ‘better’<br />
data strategy is one where enterprises<br />
have a single view of all data points and<br />
these are integrated to respond in sync<br />
with unit changes. An integrated data<br />
strategy helps move the fulfillment<br />
chain in three phases - increasing<br />
visibility thereby reducing variability<br />
and finally increasing velocity. All these<br />
three phases require a different yet<br />
integrated data strategy.<br />
JULY <strong>2019</strong>
As enterprises continue through<br />
their digital transformation journeys,<br />
how are innovations in AI and<br />
predictive technologies specifically<br />
playing a role?<br />
Most enterprises on digital transformation<br />
journeys go through several<br />
stages, as they learn to apply machine<br />
learning and artificial intelligence.<br />
These stages are: descriptive,<br />
prescriptive, and predictive. In the<br />
first, you can only see what the data<br />
does, and it can help inform decisionmaking<br />
processes. In the second<br />
stage, you can employ an AI technology<br />
to gain prescriptive intelligence to<br />
solve specific problems or gain<br />
insight into definitive opportunities<br />
- for example, AI can identify demand<br />
per channel, or identify which models<br />
are the most profitable. In the third<br />
and final stage, you reach an exalted<br />
state of sorts wherein the ability to<br />
predict trends in the data becomes so<br />
accurate that it’s possible to preempt<br />
action around the insights. This final<br />
stage will lead to a much more<br />
focused and streamlined supply chain,<br />
and allow for comprehensive preemptive<br />
planning for all relevant supply<br />
and demand factors.<br />
51<br />
www.businesschief.com
TECHNOLOGY<br />
52<br />
Are there any particular industries<br />
which have the best opportunity to<br />
gain a competitive advantage by<br />
adopting this technology before the<br />
rest of their peers?<br />
I can’t think of any industry that should<br />
not be investing in emerging technology<br />
solutions. In fact, it is no longer really<br />
a question of competitive edge, but<br />
rather of survival. If you’re not investing<br />
in emerging technology and at least<br />
exploring opportunities with AI, you’re<br />
making yourself vulnerable to other<br />
companies in the field that may have<br />
higher efficiency and greater analytical<br />
abilities (and thus a greater competitive<br />
advantage) in their supply chain.<br />
What do you see as the biggest<br />
trends going forward related to<br />
emerging technology in AI and the<br />
supply chain?<br />
Going forward, I see a number of ways<br />
that emerging technology will continue<br />
to influence the supply chain. The next<br />
step in using data in the supply chain<br />
will be merging all sources of customer<br />
data, including social media data. Down<br />
the line, we’ll be looking at more IoT<br />
data. In coming years, we expect to see<br />
the rise of the intelligent home assistant<br />
as the first point of understanding<br />
consumers and the supply side. Information<br />
on demand signals will no longer<br />
be coming directly from consumer<br />
JULY <strong>2019</strong>
“The main challenge is that<br />
due to the changing nature<br />
of modern consumer supply<br />
and demand, supply chains<br />
need to get increasingly<br />
more agile and more in tune<br />
with short-term planning”<br />
—<br />
Vivek Wikhe,<br />
Domain Expert of Retail and Supply Chain,<br />
LatentView Analytics<br />
53<br />
www.businesschief.com
TECHNOLOGY<br />
“I can’t think of any industry that<br />
should not be investing in<br />
emerging technology solutions.<br />
In fact, it is no longer really<br />
a question of competitive edge,<br />
but rather of survival”<br />
—<br />
Vivek Wikhe,<br />
Domain Expert of Retail and Supply Chain,<br />
LatentView Analytics<br />
54<br />
data, but rather personal assistants<br />
inside the home.<br />
On the logistical side, I expect we’ll<br />
also be seeing a greater ability to deal<br />
with smaller markets. Once analytics<br />
helps optimise supply chains to a greater<br />
degree, things such as home delivery<br />
models will become profitable, even for<br />
smaller markets and chains. The overwhelming<br />
trend will be intelligent assistants<br />
embedded in various enterprise<br />
chains interacting with each other to<br />
ensure regular chores are carried out<br />
without constant human intervention<br />
JULY <strong>2019</strong>
Are there any recent projects<br />
LatentView Analytics has worked on<br />
related to supply chain analytics that<br />
you can discuss?<br />
Currently we’re working on several<br />
interesting projects. We’re helping<br />
some big name retailers understand<br />
how in an omni-channel environment<br />
they can understand their net cost for<br />
every consumer channel. There are<br />
certain aspects where it becomes not<br />
just a supply chain solution. Once you<br />
understand the optimal channel mix,<br />
you also have to take into account<br />
downstream promotion, and make the<br />
data actionable and profitable.<br />
We’re also doing some work in supply<br />
chain and predictive analytics. In the<br />
US market, over the past two years,<br />
there have been more occurrences of<br />
incorrect delivery windows, due to<br />
shortages of supply. This creates both<br />
a greater cost to the company, as well<br />
as operational inefficiency. We’re now<br />
looking at a predictive model that<br />
compiles and analyses data to help<br />
more accurately predict arrival times<br />
of packages for consumers.<br />
55<br />
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PEOPLE<br />
56<br />
The ELEPHANT in<br />
the digital room:<br />
unplanned<br />
downtime<br />
Mark Homer, VP Global Customer Transformation,<br />
ServiceMax , discusses how businesses must<br />
improve asset management and servicing to<br />
reduce unplanned downtime pressure due to a<br />
growing reliance on automation and digital<br />
transformation<br />
WRITTEN BY MARK HOMER<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
57
PEOPLE<br />
58<br />
As industrial automation continues to<br />
digitize, one area in particular is<br />
becoming a critical area of concern–<br />
unplanned downtime. The shift to outcomebased<br />
business models, equipment assets<br />
becoming more sophisticated and connected,<br />
and of course, the pervasive and increasing<br />
reliance on machines, are all adding to the<br />
pressure to avoid outages. Mitigating downtime<br />
is now a strategic priority in the digital age.<br />
Take power as an example. In the US, generating<br />
units are unavailable on average for 15% of<br />
the time due to outages and maintenance. In<br />
fact, 6% of the time they are unable to meet<br />
demand at all. And the Energy Information<br />
Administration highlights that a further 6% of<br />
electricity is lost in transmission and distribution<br />
due to both technical factors and outages.<br />
The growing reliance on automation is<br />
already widening performance gaps. <strong>Business</strong>es<br />
are losing sight of assets, especially in terms<br />
of efficiency, leading to a fractured insight of<br />
manufacturing or service delivery. The upshot is<br />
that unplanned downtime becomes a real<br />
problem and even worse, the lack of visibility<br />
leads to an unnecessary lengthening of recovery<br />
time. Closing this downtime gap is a fundamental<br />
step in an organization’s digital maturity, and<br />
a core part of their transformation journey.<br />
JULY <strong>2019</strong>
“The growing<br />
reliance on<br />
automation<br />
is already<br />
widening<br />
performance<br />
gaps”<br />
59<br />
—<br />
Mark Homer,<br />
VP Global Customer Transformation,<br />
ServiceMax<br />
www.businesschief.com
PEOPLE<br />
60<br />
According to a recent Vanson Bourne<br />
global study After The Fall: Cost, Causes<br />
and Consequences of Unplanned<br />
Downtime, 82% companies have<br />
experienced at least one unplanned<br />
downtime outage over the past three<br />
years, and two on average. These<br />
outages have lasted four hours. Depending<br />
on the company and type of equipment,<br />
this can cost organizations<br />
anywhere from $50k-$150k per hour<br />
for say, a medical device company, and<br />
up to $2m for a major outage on an<br />
industrial critical asset. (Aberdeen<br />
estimates the cost across all businesses<br />
to be $260,000 an hour). The research<br />
also revealed high levels of asset estate<br />
ignorance across organizations, with<br />
70% of companies lacking full awareness<br />
of when equipment is due for maintenance,<br />
upgrade or replacement.<br />
In addition to financial losses,<br />
the research found that almost<br />
a third of respondents said<br />
they were unable to service or<br />
support specific equipment<br />
assets, while 65% of respondents<br />
from the energy and utilities<br />
sector, and 62% from the medical<br />
sector cited losing the trust<br />
of their customers as<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘SERVICEMAX DAY IN THE LIFE OF TECHNICIAN OVERVIEW’<br />
61<br />
a possible impact of suffering a highprofile<br />
incident or disaster. Across all<br />
sectors, around one in ten admitted<br />
their company would never recover<br />
from such critical incidents and would<br />
ultimately cease to exist. Nobody wants<br />
to be blindsided with those sorts of<br />
numbers. But what are companies<br />
doing about it?<br />
The research hints at a tipping point<br />
in recognition of the problem and<br />
planned investment to address it. Over<br />
time, zero tolerance and zero unplanned<br />
downtime will become the norm as<br />
companies develop and invest in their<br />
industrial digital strategies. Key to this,<br />
is an understanding of and investment<br />
in field service management and asset<br />
performance management capabilities.<br />
According to Vanson Bourne, eight<br />
in ten companies have already<br />
recognized this, at least that digital<br />
tools can improve visibility of assets<br />
and help eliminate unplanned downtime.<br />
Around 50% of companies<br />
confirmed they plan to invest in field<br />
service and asset management<br />
technologies in the next three years,<br />
while 72% of firms claim that zero<br />
unplanned downtime is now a number<br />
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PEOPLE<br />
62<br />
one priority. So, the message is<br />
sinking in at least.<br />
The challenge for most businesses is<br />
to digitally transform without losing<br />
oversight of key products, services and<br />
of course assets. Digital transformations<br />
do not automatically improve<br />
control and visibility. Companies need<br />
to pursue a service-led approach to<br />
business, to ensure that their ability<br />
to manage the actual assets that make<br />
products or ensure services run<br />
smoothly are always up and running.<br />
A clear asset management and predictive<br />
maintenance strategy should<br />
ensure that businesses take the right<br />
path towards reducing, if not completely<br />
eliminating downtime.<br />
Understanding problems before they<br />
happen and having knowledgeable<br />
and digitally-empowered service technicians<br />
to ensure the smooth running<br />
of assets will go a long way to making<br />
this happen. A digital twin of physical<br />
assets will help considerably here, and<br />
the research has revealed that around<br />
54% of companies are planning<br />
to invest in a digital twin by 2020.<br />
Throw-in the fact that field service<br />
is expected to become a primary<br />
revenue driver for most businesses<br />
within the next two years and you have<br />
a recipe for transformation.<br />
We often hear the phrase, ‘you cannot<br />
account for human error’ but that seems<br />
illogical in today’s connected world. We<br />
have the technology to not just account<br />
for human error but to eradicate it. The<br />
internet of things with the proliferation<br />
of affordable and reliable sensors is<br />
changing the way in which we can view,<br />
manage, service and support technology,<br />
processes and any physical object.<br />
By mirroring a process, product or<br />
service into a virtual world, we can<br />
JULY <strong>2019</strong>
“Digital transformations<br />
do not automatically<br />
improve control and<br />
visibility”<br />
—<br />
Mark Homer,<br />
VP Global Customer Transformation,<br />
ServiceMax<br />
63<br />
create environments in which machines<br />
can automatically analyse performance,<br />
warn of impending issues, identify<br />
existing or potential errors and even<br />
suggest part upgrades or changes to<br />
procedures to make them more efficient.<br />
This is the digital twin idea. As a concept,<br />
it’s been around for a while (NASA<br />
used it on early space missions) but the<br />
emergence of IoT has made it a commercial<br />
reality. Digital twin eliminates<br />
guesswork from determining the best<br />
course of action to service critical<br />
physical assets, from engines to power<br />
turbines. Easy access to this combination<br />
of deep knowledge and intelligence<br />
about your assets paves the road to<br />
wider optimization and business<br />
transformation.<br />
Digital twin technology spans across<br />
all industries where the value is in assets<br />
and more generally complex systems.<br />
Its ability to deliver early warnings,<br />
predictions, and optimization is fairly<br />
universal. In time, I think we’ll see the<br />
concept of a digital twin to be applied<br />
to human beings as well, playing a significant<br />
role in healthcare.<br />
www.businesschief.com
PEOPLE<br />
“Digital twin technology spans<br />
across all industries where the<br />
value is in assets and more<br />
generally complex systems”<br />
—<br />
Mark Homer,<br />
VP Global Customer Transformation,<br />
ServiceMax<br />
64<br />
However, just mirroring is not enough.<br />
If the aim is to achieve zero downtime<br />
or at the very least, overall insight into<br />
on-going product and process performance,<br />
the digital twin has to be analysed<br />
and that analysis has to feed other<br />
functions. What the digital twin produces,<br />
when bundling data with intelligence, is<br />
a view of each asset’s history and its<br />
potential future performance.<br />
The digital twin can use historical<br />
data and current data to provide a complete<br />
picture of a particular asset, its<br />
past performance, what it should be<br />
JULY <strong>2019</strong>
achieving now and its likely end of life<br />
date, when it would be predicted to be<br />
less efficient. This sort of knowledge is<br />
gold dust for product designers and<br />
manufacturers as it can feed back accurately,<br />
which parts work well and<br />
where machines would need improving<br />
or upgrading.<br />
Combined with the knowledge of field<br />
service professionals this makes for<br />
a powerful tool for upselling products<br />
and services to customers. Any new<br />
ideas or enhancements can be fully<br />
supported with data analysis and<br />
perhaps even simulations to illustrate<br />
how new parts and functions would<br />
improve performance. It offers justification<br />
and also accountability and should<br />
cut through irrelevant or unsuitable<br />
product or service ideas. It’s transforming<br />
service at the edge by bringing<br />
together all the facets that make<br />
businesses and machines tick - and<br />
goes a long way to creating a world<br />
of zero unplanned downtime.<br />
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SUSTAINABILITY<br />
66<br />
Social impact:<br />
balancing profit<br />
and purpose<br />
Natasha Mudhar, Global CEO of Sterling<br />
Group and The World We Want, discusses<br />
why CSR should be a company-wide<br />
initiative rather than just ticking a box<br />
WRITTEN BY NATASHA MUDHAR<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
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SUSTAINABILITY<br />
68<br />
While most corporates and<br />
businesses have implemented<br />
a social impact<br />
strategy, many are typically incongruent<br />
with the company’s profitability<br />
and growth objectives, and are often<br />
rendered obsolete. Effective social<br />
impact strategies need to be ingrained<br />
in the very fabric of a company’s<br />
corporate DNA, and not just a tick in<br />
the box. Companies are still failing to<br />
grasp how having an effective social<br />
impact strategy is key to long term<br />
growth and viability.<br />
CSR is a means for companies to<br />
bring benefit to themselves and employees<br />
whilst also benefiting society. While<br />
businesses are becoming increasingly<br />
aware of the benefits of having such<br />
a strategy, they are still lacking in awareness<br />
as to how deep a social impact<br />
strategy needs to be embedded in<br />
a company and why it needs to be<br />
embraced in this way.<br />
A global study by the SEFORIS project<br />
(the world’s largest study of social<br />
enterprises to date) has revealed how<br />
companies delivering inclusive growth<br />
JULY <strong>2019</strong>
69<br />
by implementing a social impact strategy<br />
are also seeing rapid growth in revenue.<br />
Effective social impact strategies are<br />
designed to improve a company’s overall<br />
mission, not just its brand identity. Not<br />
to be confused with marketing or<br />
corporate philanthropy, social impact<br />
strategies provide a concrete plan that<br />
has quantifiable business outcomes<br />
combined with a measurable and definitive<br />
societal impact.<br />
It is no longer enough to be just profit<br />
driven. What makes companies stand<br />
out is their ability to place profit and<br />
purpose alongside each other. In order<br />
for a company to truly thrive, it needs to<br />
be both profitable and purposeful<br />
simultaneously. An organization that is<br />
both profit and purpose driven provides<br />
mobility to its employees and resources<br />
in a way that is incomparable. For<br />
a business to grow, purpose needs to<br />
be embedded in its core. Companies<br />
need to do well by doing good.<br />
In order to address this, companies<br />
must fully understand how their employees<br />
can be one of their biggest assets<br />
to expand their social impact footprint.<br />
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SUSTAINABILITY<br />
70<br />
“CSR is a means<br />
for companies to<br />
bring benefit to<br />
themselves and<br />
employees whilst<br />
also benefiting<br />
society”<br />
—<br />
Natasha Mudhar,<br />
CEO, Stirling Group and The World We Want<br />
Exhibiting a strong social impact<br />
strategy not only enhances trust<br />
among the public and makes the<br />
company attractive to prospective<br />
employees but also results in<br />
a more engaged workforce, geared<br />
to generate not only revenue, but<br />
valuable channels for marketing and<br />
public relationships. The people of<br />
a business provide the most genuine<br />
representation of a company’s brand<br />
and value, organizations need to<br />
remember this when considering<br />
social impact.<br />
JULY <strong>2019</strong>
Employees are much more engaged<br />
and satisfied when given the opportunity<br />
to perform impactful work. This will<br />
result in a stronger feeling of fulfilment<br />
and purpose amongst employees and<br />
essentially enhance a positive impact<br />
in the workplace. Studies have shown<br />
how corporate social responsibility has<br />
been highlighted as one of the key most<br />
important drivers of employee engagement,<br />
and engaged employees are<br />
effective workers and drive results.<br />
Weak outreach efforts to the community<br />
should no longer be acceptable<br />
and are not measurable against an<br />
embedded, well-implemented social<br />
impact strategy, focusing on the dayto-day<br />
contributions towards community<br />
engagement as opposed to the occasional<br />
donation or charitable event.<br />
Scaling up social impact needs to be<br />
a multi-sector process. Effective crosssector<br />
collaboration will enable new<br />
techniques and approaches to be<br />
deployed to achieve better social<br />
outcomes. The combination of public,<br />
private and social sector collaboration<br />
can address complex social challenges<br />
71<br />
EXECUTIVE PROFILE<br />
Natasha Mudhar<br />
Natasha Mudhar is an international communicator and<br />
director working on some of the most socially relevant<br />
global campaigns. She is also Global CEO of Sterling<br />
Media, the multi-disciplinary, international business<br />
consultancy with a robust communications backbone,<br />
established in 1995. Representing SMEs, FTSE 100<br />
companies including billion-dollar hedge funds,<br />
as well as disruptors, innovators and high-profile<br />
celebrities, Mudhar’s insight and global understanding<br />
in the realm of business, brand development, market<br />
growth and entry strategies has assisted major players<br />
in aligning their vision with their business strategies.<br />
www.businesschief.com
SUSTAINABILITY<br />
“Weak outreach<br />
efforts to the<br />
community<br />
should no longer<br />
be acceptable”<br />
—<br />
Natasha Mudhar,<br />
CEO, Stirling Group and The World<br />
We Want<br />
72<br />
by pulling resources from various<br />
players to ensure the improvement of<br />
effectiveness and efficiency of the<br />
services companies can offer to the<br />
public through joint efforts. Too often<br />
public, private and social sectors are<br />
segregated and siloed, with their<br />
resources fragmented, they need to<br />
work together towards common<br />
goals and enable mutually desired<br />
social outcomes.<br />
Who does the responsibility lie with?<br />
It is up to the company’s leadership to<br />
ensure that social impact is at the top<br />
JULY <strong>2019</strong>
of the business agenda. They must<br />
ensure that an effective strategy is<br />
embedded into the company’s day-today<br />
workings, prioritizing long-term<br />
value in a way that mutually benefits<br />
both employees and society at large.<br />
CEOs must outline clear objectives<br />
and purpose of the company beyond<br />
financial touchpoints, defining their<br />
values. It is important that these guiding<br />
values permeate every decision-making<br />
process, from environmental footprint<br />
to social impact to investment decisions.<br />
<strong>Business</strong>es must consider social<br />
impact as a company wide initiative<br />
and not just a tick in the box. Otherwise,<br />
they risk losing the trust of the public<br />
which can be extremely damaging in<br />
the long term. In this age of heightened<br />
transparency and increased accountability,<br />
companies cannot afford to leave<br />
this issue unaddressed. The consequences<br />
in doing so can be profound.<br />
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CITY FOCUS<br />
<strong>Business</strong> <strong>Chief</strong> investigates the<br />
third-largest city in the Lone Star<br />
State and looks at three startups<br />
working to change the lives<br />
of its citizens for the better<br />
74<br />
City Focus<br />
DALL<br />
JULY <strong>2019</strong>
ASWRITTEN BY HARRY MENEAR<br />
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www.businesschief.com
CITY FOCUS | CHICAGO<br />
DALLAS<br />
76<br />
A<br />
bustling metropolis in north Texas with<br />
over 1.3mn inhabitants, Dallas is the thirdlargest<br />
city in the state. The city has a rich<br />
and vibrant history: the original home of the global<br />
convenience store chain 7-Eleven, an airport larger<br />
than the island of Manhattan, and iconic football<br />
team the Dallas Cowboys (the teawm that popularized<br />
the modern conception of the cheerleader).<br />
Originally an agricultural and American Indian trading<br />
hub, Dallas soon evolved into one of the world’s<br />
largest inland cotton trading cities in the early 20th<br />
century. In subsequent decades, the discovery of<br />
crude oil reserves in the surrounding area turned<br />
it into a budding boom town and quickly the center<br />
of the nation’s oil market.<br />
Manufacturing infrastructure tied to the production<br />
of cotton-picking equipment and oil drilling led<br />
to the city emerging from World War Two as a<br />
leading communications, engineering and production<br />
town. The communications revolution, and<br />
more recently Industry 4.0, has continued to play<br />
a large part in Dallas’ economy to this day.<br />
Fortune 500 companies Texas<br />
Instruments, AT&T, Exxon Mobil<br />
and Jacobs Engineering are among<br />
the many technology and industrial<br />
leaders that call the city and its<br />
surrounding area home.<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
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CITY FOCUS | DALLAS<br />
Continuing the successful tradition<br />
of communications, technology and<br />
industrial commerce, while also acting<br />
for the benefit of its citizens, is Dallas’<br />
vibrant startup scene. We examine<br />
three socially conscious Dallas tech<br />
companies harnessing the power of<br />
the digital age to improve the lives<br />
of American citizens.<br />
“We’re teleporting<br />
them from their four<br />
walls of existence into<br />
an unbelievable,<br />
fantastic<br />
environment”<br />
—<br />
Chris Brickler,<br />
MyndVR<br />
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JULY <strong>2019</strong>
CLICK TO WATCH: ‘XMYNDVR: SMILES ON FACES’<br />
79<br />
MYNDVR<br />
Founded in 2016 by Chris Brickler and<br />
Shawn Wiora, MyndVR is headquartered<br />
at the northernmost end of Dallas.<br />
Brickler, who served as an executive<br />
with Verizon, British Telecom and AT&T<br />
over the course of his career, has<br />
worked alongside Wiora to create a<br />
virtual reality (VR) application targeted<br />
at the assisted living demographic.<br />
According to an article by D Magazine,<br />
the MyndVR uses 360-degree<br />
cameras to capture and bring to life<br />
comforting and engaging experiences<br />
for assisted living seniors. “We’re<br />
teleporting them from their four walls<br />
of existence into an unbelievable,<br />
fantastic environment,” Brickler told<br />
D Magazine. “They get to hear and see<br />
it, so they resonate with it in a way<br />
that’s so powerful and heartwarming.”<br />
One of the company’s VR experiences<br />
involved using a live band and actors<br />
in 1950’s costume to simulate a Frank<br />
Sinatra concert.<br />
Brickler believes that the Dallas<br />
startup’s solution can and should be<br />
easily applied across the country, and<br />
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CITY FOCUS | DALLAS<br />
80<br />
has the power to effect positive change<br />
in the lives of people suffering from<br />
Alzheimers, Dementia or simply the<br />
isolation of old age.<br />
ROBOKIND<br />
Founded eight years ago and headquartered<br />
in the city’s Main Street<br />
District, RoboKind specializes in leveraging<br />
advanced social robotics in<br />
order to support autism therapies and<br />
provide instruction to students studying<br />
STEM. With the goal of creating<br />
cost-effective, inclusive education,<br />
RoboKind has worked with the autism<br />
spectrum disorder community to<br />
create its flagship product, Milo.<br />
With life-like facial features and<br />
unwavering patience, Milo uses repetition-based<br />
techniques to deliver a<br />
learning experience to autistic children<br />
that is reportedly almost 80% more<br />
effective than traditional therapy.<br />
RoboKind launched Milo in 2016.<br />
The other main element of<br />
RoboKind’s product offering helps<br />
to address the future STEM leaders<br />
growing up in the city. “Dallas’ workforce<br />
of the near future demands<br />
different skills than its workforce has<br />
JULY <strong>2019</strong>
today. STEM skills, such as coding<br />
and programming, will become more<br />
important as the tech industry continues<br />
to grow,” writes Jeff Goodman,<br />
RoboKind’s manager of sales and<br />
operations.<br />
Continuing to pursue its mission to<br />
provide inclusive and effective education,<br />
the RoboKind team created<br />
Robots4STEM, a simple drag and drop<br />
programming language designed to<br />
give children an early introduction to<br />
computer science. Children use the<br />
language to enter commands into Jett,<br />
a humanoid robot.<br />
“Dallas’ workforce of the<br />
near future demands<br />
different skills than its<br />
workforce has today.<br />
STEM skills, such as<br />
coding and programming,<br />
will become more important<br />
as the tech industry<br />
continues to grow”<br />
—<br />
Jeff Goodman,<br />
Manager of Sales and Operations,<br />
RoboKind<br />
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CLICK TO WATCH: ‘ROBOTS4STEM: OVERVIEW’<br />
www.businesschief.com
CITY FOCUS | DALLAS<br />
TRACK15<br />
Situated on the southwestern side of<br />
Dallas, Track15 is a startup looking to<br />
change the way people change the<br />
world. Co-founded in 2017 by Andrew<br />
Snow and Chris Schultz, the company<br />
provides back end business development<br />
consultancy services to nonprofit<br />
organizations. “The lack of business<br />
acumen that nonprofits have—that’s<br />
what brought us together,” Snow said<br />
“We believe the<br />
relationship between<br />
the donor and the<br />
mission are what’s<br />
important for a sustainable<br />
nonprofit model”<br />
—<br />
Andrew Snow,<br />
Co-Founder, Track15<br />
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JULY <strong>2019</strong>
in an interview with D Magazine. “We<br />
believe the relationship between the<br />
donor and the mission are what’s important<br />
for a sustainable nonprofit model.”<br />
Through close collaborative partnerships<br />
and consulting services,<br />
Track15 helps its clients streamline<br />
their organizations and create more<br />
value for the people they work to<br />
help. “We take them from zero to 60<br />
very quickly,” added Snow.<br />
Track15 currently counts nonprofits<br />
like Mercury One, the Farm to Consumer<br />
Legal Defense Fund, the Prison<br />
Entrepreneurship Program and the Dallas<br />
Film Festival among its clients. The<br />
company’s roadmap sees it seeking out<br />
larger clients and expanding beyond the<br />
Dallas city limits, driven by the idea that:<br />
“We want to listen to your story, bond to<br />
your uniqueness and commit to providing<br />
you with exactly what you need.”<br />
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TOP 10<br />
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JULY <strong>2019</strong>
TOP 10<br />
Manufacturers<br />
in the US<br />
85<br />
<strong>Business</strong> <strong>Chief</strong> counts down the top 10<br />
manufacturers in the US, according<br />
to Forbes’ Global 2000 ranking of the<br />
world’s largest public companies<br />
WRITTEN BY WILLIAM SMITH<br />
www.businesschief.com
TOP 10<br />
86<br />
10 PepsiCo<br />
Forbes list 86<br />
PepsiCo traces its history back to 1898, when Caleb Bradham first<br />
formulated Pepsi-Cola for sale in his North Carolina pharmacy.<br />
Today, the company is responsible for the production of its eponymous<br />
cola as well as beverage brands such as Mountain Dew and<br />
Gatorade, and food brands like Lay’s and Doritos. 86th on Forbes’<br />
list, the company’s revenue reached $65bn, with profits totalling<br />
some $12.6bn in 2018.<br />
JULY <strong>2019</strong>
87<br />
09 DowDuPont<br />
Forbes list 81<br />
Formed from the 2017 merger of American stalwart chemical<br />
companies Dow Chemical and DuPont, DowDuPont is the world’s<br />
largest manufacturer of chemicals. Historically, the two companies<br />
have pioneered innovative materials such as nylon, in DuPont’s case,<br />
and styrofoam in Dow Chemical’s. With its 2018 revenue at $86bn<br />
and profits of $3.8bn, it came 81st on Forbes’ list.<br />
www.businesschief.com
TOP 10<br />
88<br />
08<br />
United Technologies<br />
Forbes list 78<br />
Multinational conglomerate United Technologies is active across<br />
a range of manufacturing areas, from aircraft engines to air conditioners.<br />
Originally a pure aircraft manufacturer, its diversification<br />
was reflected in its 1974 name change away from United Aircraft.<br />
They placed 78th, with revenue totalling $66.5bn and profits<br />
reaching $5.3bn. Subsidiaries include the Otis Elevator Company,<br />
HVAC specialist Carrier and Collins Aerospace.<br />
JULY <strong>2019</strong>
“We need to<br />
make the world<br />
more how we<br />
want to see it.”<br />
- Scott Saunders,<br />
CEO & Founder, Happy Money<br />
Happy Money & Alliant Credit Union<br />
proudly celebrate 2 years of partnership,<br />
changing the way people think about<br />
and use money.
TOP 10<br />
90<br />
07<br />
Cisco Systems<br />
Forbes list 74<br />
A manufacturer of networking and telecommunications hardware,<br />
Cisco is the youngest company on this list, having been founded in<br />
1984. It counts among its clients service providers, small to medium<br />
businesses, and enterprise customers such as corporations, government<br />
agencies, utilities and educational institutions. A pioneer of<br />
networking technology, the company states that 85% of Internet<br />
traffic travel across its systems. It was 74th on Forbes’ list,<br />
with revenue of $50.8bn and profits totalling $12.9bn.<br />
JULY <strong>2019</strong>
91<br />
06<br />
General Motors<br />
Forbes list 56<br />
The largest American automotive manufacturer,<br />
General Motors came in at 56th on Forbes’ list.<br />
Responsible for iconic US brands such as Buick, Chevrolet and<br />
Cadillac, the company is headquartered in America’s Motor City,<br />
Detroit, along with its rivals Ford and Chrysler. Possessing by far the<br />
largest revenue of companies on this list at $147bn, they made profits<br />
of $8.1bn in 2018. The company has achieved something of a rebirth<br />
under the leadership of CEO Mary Barra, after its bankruptcy in 2009.<br />
www.businesschief.com
TOP 10<br />
92<br />
05 Pfizer<br />
Forbes list 54<br />
Pharmaceuticals giant Pfizer is based in New York City, and oversees<br />
the development and production of medicines and vaccines.<br />
Some of their better known drugs include Atorvastatin and Viagra.<br />
With a revenue of $53.6bn and profits of $11.2bn, the company<br />
ranked 54th worldwide. Founded in 1849, in late 2018 the company<br />
announced it was merging its consumer healthcare division with<br />
that of British pharmaceuticals company GlaxoSmithKline.<br />
JULY <strong>2019</strong>
TOP 10<br />
94<br />
04<br />
Procter & Gamble<br />
Forbes list 53<br />
Consumer goods manufacturer Procter & Gamble specializes in<br />
a broad range of products for the home. From personal care to<br />
cleaning products, its brands include detergents like Tide and Odor<br />
eliminators like Febreze. The company was founded back in 1837<br />
in Cincinnati, where it is still headquartered. It made it to 53rd<br />
on Forbes’ list. In 2018, their revenue and profits reached $66.9bn.<br />
JULY <strong>2019</strong>
95<br />
03 Boeing<br />
Forbes list 49<br />
The Boeing Company is the United States’ largest player in the<br />
aerospace industry. A defense contractor as well as a civilian<br />
manufacturer, the company’s designs range from aircraft to<br />
satellites. Founded in Seattle in 1916 and named after its founder,<br />
William Boeing, the company is now based in Chicago, Illinois.<br />
According to their figures, they employ more than 153,000 people<br />
across 65 countries. They placed in 49th position, with profits<br />
of $10.5bn from a revenue of $101.1bn.<br />
www.businesschief.com
TOP 10<br />
96<br />
02 Intel<br />
Forbes list 44<br />
Silicon Valley’s Intel is well known for its manufacture<br />
of semiconductors, and the company’s processors can<br />
be found in most personal computers, alongside those<br />
of their rival AMD. Unlike AMD, the company fabricates<br />
its own designs rather than outsourcing to semiconductor<br />
foundries, and also fabricates designs for others.<br />
Founded in 1968, the company’s co-founder Gordon<br />
Moore is well known as the author of Moore’s law<br />
regarding the doubling of transistors on a microchip<br />
every two years. It was ranked in 44th place,<br />
with revenue of $70.8bn and profits of $21.1bn.<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
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TOP 10<br />
01<br />
Johnson & Johnson<br />
Forbes list 37<br />
98<br />
Founded in 1886 in New Brunswick, New Jersey,<br />
Johnson & Johnson is a multinational pharmaceuticals<br />
and medical devices producer. They are also known for<br />
their consumer products such as Neutrogena and the<br />
Johnson’s baby brand. 37th on Forbes’ global list, their<br />
revenue reached $81.6bn in 2018, with profits totalling<br />
$14.7bn. The company remains headquartered in the<br />
city of its founding, and describes itself as employing<br />
more than 130,000 people across the globe.<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
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LOGO HERE<br />
100<br />
Inside the digital<br />
transformation<br />
of America’s oldest<br />
family-owned<br />
drug store brand<br />
WRITTEN BY<br />
HARRY MENEAR<br />
PRODUCED BY<br />
CRAIG DANIELS<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
101
BARTELL DRUGS<br />
Kari Escobedo, SVP, IT at<br />
Bartell Drugs, shares her<br />
business insights and plans<br />
for the digital transformation<br />
of America’s oldest familyowned<br />
pharmacy brand<br />
102<br />
D<br />
igital transformation is change, and<br />
in the world of the enterprise, change<br />
is unrelenting. From a single location<br />
purchased by 21-year-old pharmacist George H<br />
Bartell Sr in 1890, Bartell Drugs has become the<br />
United States’ oldest family-owned drugstore<br />
chain – an iconic brand in the Pacific Northwest.<br />
Achieving constancy and longevity through a great<br />
depression, a great recession, two world wars and<br />
myriad upheavals that mark almost 130 years of<br />
history, the brand is an American success story.<br />
Walking the line between the traditional and<br />
the futuristic, while always delivering the<br />
highest quality of service to its customers,<br />
Bartell’s is making strides towards a bold<br />
digital future. “We want to bring Bartell’s into<br />
the modern digital world and ensure that its<br />
brand and products will still be here serving<br />
our communities a hundred years from now,”<br />
says Kari Escobedo, Senior Vice President (SVP)<br />
of IT at Bartell’s. Escobedo, along with new CEO<br />
Kathi Lentzsch and other Sr Executives are<br />
JULY <strong>2019</strong>
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BARTELL DRUGS<br />
104<br />
“We want to bring<br />
Bartell’s into the<br />
modern world<br />
and ensure that<br />
its brand and<br />
products will still<br />
be here in another<br />
hundred years”<br />
—<br />
Kari Escobedo,<br />
IT, Bartell Drugs<br />
working to build teams to shape Bartell’s<br />
digital transformation strategy. This<br />
approach will carry the company into<br />
the fourth industrial revolution and,<br />
hopefully, into the 22nd century.<br />
Prior to joining the company in <strong>July</strong><br />
2018, Escobedo spent over a decade<br />
working for some of the Pacific<br />
Northwest’s largest, most game-changing<br />
companies. From years of growing<br />
up in a military household to experiences<br />
at Starbucks, Microsoft, T-Mobile,<br />
and Kaiser Permanente of WA, she<br />
shares how the transformation values<br />
of continually driving innovation,<br />
promoting community and diversity, and<br />
championing adaptability are informing<br />
Bartell’s digital transformation.<br />
“I grew up in the Marine Corps,<br />
moving around every couple of years.<br />
I’ve lived all over the country and parts<br />
of the world – that’s what you do as<br />
a military child,” recalls Escobedo.<br />
“Every two to three years, we would<br />
pick up and move to another state.<br />
My siblings and I got dropped into a<br />
whole new school on a regular basis.”<br />
Escobedo credits her frequent<br />
relocations into new cities, cultures<br />
and social dynamics at an early age<br />
for a trait she has found invaluable<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘#BETTERWITHBARTELLS: DID YOU KNOW?’<br />
105<br />
throughout her career: adaptability.<br />
“I got very good at finding my way<br />
and finding things about myself that<br />
integrate well into new situations,”<br />
she explains. In her career, she quickly<br />
found: “You get really good at reading<br />
the organization, the culture, seeing<br />
opportunities and being able to stand<br />
back and say: ‘Where do I fit in this<br />
picture? Where I can use what I do best<br />
to help the company?’ One thing that<br />
I lean on a lot is my adaptability coming<br />
into new organizations.”<br />
Adapting to different environments<br />
is a skill that Bartell’s has integrated<br />
into its business model for a long time;<br />
each of the brand’s 68 locations is<br />
uniquely tailored to its neighborhood<br />
and customer base. “Our stores fit into<br />
their neighborhoods architecturally,<br />
but also about 30% of the products we<br />
stock are local to the Pacific Northwest,”<br />
Escobedo explains. “There are some<br />
stores that are partnered with the Post<br />
Office, because that’s something their<br />
neighborhoods were lacking when they<br />
opened.” Other stores have everything<br />
from growler stations and espresso<br />
bars to hand-dipped ice cream stands<br />
and product assortments for office<br />
www.businesschief.com
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workers on lunch breaks. “The makeup<br />
of the product selection is focused<br />
on what customers need versus only<br />
what we want to sell them,” she says.<br />
“It differentiates us from some of our<br />
big box competitors.”<br />
Bartell’s also adapts its instore<br />
experience so all feel welcome. “There<br />
was a conscious decision made<br />
to have shorter fixtures in all stores.<br />
With a lower profile, our stores feel<br />
“I got very good at<br />
finding my way,<br />
and finding things<br />
about myself that<br />
integrate well into<br />
new situations”<br />
—<br />
Kari Escobedo,<br />
IT, Bartell Drugs<br />
EXECUTIVE PROFILE<br />
Kari Escobedo, SVP, IT<br />
Kari Escobedo is a business executive with 20+ years of leadership<br />
experience serving global F500 companies in technology,<br />
healthcare, telecoms, and retail. She is a change leader specializing<br />
in company technology transformations, including digital<br />
experience, product dev, and M&A. Kari joined Bartell Drugs in<br />
mid-2018 to help positively impact the company thru technology.<br />
Prior to Bartell Drugs, Kari joined Kaiser Permanente 2015<br />
leading the Ent & Digital Services areas that include UX/CX,<br />
Digital & Mobile for KPWA. Formerly VP, Ent Sys Dev for<br />
T-Mobile, Kari led the technology team responsible<br />
for the development and delivery of solutions for the<br />
Customer Retail & Enterprise Systems that supported<br />
the T-Mobile business transformation. Before joining<br />
T-Mobile, Kari was the Director of Information<br />
Management and CISO for Starbucks as well as teams<br />
that supported ERP, Employee Portal systems.<br />
Before Starbucks, Kari held leadership positions<br />
at Microsoft, running it’s Enterprise Systems teams.<br />
107<br />
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anz.businesschief.com
BARTELL DRUGS<br />
108<br />
1890<br />
Year founded<br />
1,700<br />
Approximate number<br />
of employees<br />
HQ<br />
Seattle,<br />
Washington<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
109
BARTELL DRUGS<br />
110<br />
more open. You can see across the<br />
store and find people; it’s more inviting.”<br />
A feeling of welcome and personalized<br />
experience is key to the way Bartell’s<br />
does business. Escobedo’s priority<br />
is to harness the power of digital<br />
transformation to provide the company<br />
with more ways to reach its customers,<br />
while honoring the traditional heritage<br />
established by the Bartell family. “In<br />
Seattle, we have a pretty tech-savvy<br />
customer base, but we also have a<br />
customer base that really appreciates<br />
and demands personalization,” she<br />
explains. “They need to know you and<br />
you need to know them as a customer.<br />
That’s just part of the relationship-driven<br />
environment that we have in the Northwest.<br />
It’s what Bartell’s is known for.”<br />
Escobedo’s leadership style is<br />
uniquely suited for Bartell’s transformation.<br />
“I love to come in and build<br />
sustainable change,” she enthuses,<br />
recalling her time at telecom giant<br />
T-Mobile and Starbucks. Escobedo<br />
constantly asks herself: “How do we<br />
keep driving innovation? You can find<br />
possibilities everywhere. You don’t have<br />
to be introducing new products that<br />
nobody’s seen before, but you need<br />
to be innovating for your customers.”<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
111
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CLICK TO WATCH: ‘#LOVINGLOCAL: JOE CHOCOLATES’<br />
113<br />
In terms of e-commerce, Bartell’s has<br />
taken a very customer centric approach,<br />
working in conjunction with<br />
Amazon Prime Now and several other<br />
well-known last-mile shopping delivery<br />
services on same day delivery of<br />
non-pharmacy items. “We’re channel<br />
agnostic right now,” she explains.<br />
“Whichever company you buy our<br />
products through, the strategy we’ve<br />
put together is focused on giving our<br />
customer’s choice and the opportunity<br />
to get our products in the easiest way<br />
for them – we want to be where they<br />
shop versus making them come to us.”<br />
On the pharmacy side, Escobedo and<br />
Bartell’s are working in conjunction<br />
with Californian start-up, NimbleRx,<br />
to provide delivery services for prescriptions<br />
and commonly purchased<br />
OTC products. “It allows us to really<br />
fulfil a strategy built around making it<br />
super easy for customers to buy things<br />
from Bartell’s when and where they<br />
want them,” she explains.<br />
While many things are changing<br />
around them, Escobedo’s team relies<br />
on her ability to build excitement and to<br />
lead by example. “My job is to help my<br />
teams and business partners succeed<br />
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JULY <strong>2019</strong>
– because if they are successful, then<br />
we all win,” she says. “It is critical to be<br />
transparent and to clearly define<br />
expectations for myself and my teams.<br />
I hold them accountable and they hold<br />
me accountable. With that comes<br />
mutual trust and a comfortability that<br />
fits well in our organization,” said<br />
Escobedo. This isn’t limited to the<br />
teams she leads. With vast knowledge<br />
and relationships in the technology<br />
world, and the experts in that space,<br />
Escobedo chooses the right partners<br />
and vendors that will champion for<br />
Bartell’s and their goals.<br />
Escobedo is embracing technological<br />
wins of every size. She uses small<br />
changes like augmenting legacy<br />
point-of-sale systems with user-friendly<br />
mobile-driven solutions to promote a<br />
culture that is accepting of and<br />
enthusiastic about more radical<br />
transformations. “Many of our employees<br />
have been at Bartell’s for a long<br />
time and they love this company. That<br />
means, as we move to adopt and<br />
leverage some of these technologies,<br />
115<br />
“Customers need to<br />
know you and you<br />
need to know them.<br />
That’s just part of the<br />
relationship-driven<br />
environment that<br />
we have in the<br />
Northwest, and it’s<br />
what Bartell’s is<br />
known for”<br />
—<br />
Kari Escobedo,<br />
IT, Bartell Drugs<br />
www.businesschief.com
BARTELL DRUGS<br />
Bartell – Supporting local brands<br />
116<br />
Joe Chocolate Co. specializes in<br />
crafting delicious, handmade<br />
chocolate, infused with locallyroasted<br />
coffee from Lighthouse<br />
Roasters. Our functional chocolate<br />
gives you the energy you need<br />
from ingredients you love.<br />
Nuun Hydration was founded in<br />
2004 by cyclists and triathletes,<br />
who decided to trade in sugary<br />
sports drinks and powders and<br />
create a light, refreshing, portable<br />
hydration solution. Nuun has a<br />
variety of hydration products to<br />
fit every hydration need, whether<br />
you’re running a marathon or<br />
a marathon of errands!<br />
Pacifica Beauty: Pacifica’s<br />
products are vegan and<br />
cruelty-free with an everpresent<br />
mindset to reduce its<br />
impact on the environment.<br />
Liberty Orchards: Aplets &<br />
Cotlets. The blossom-fresh<br />
flavor of crisp Washington<br />
apples, the tangy goodness of<br />
ripe apricots, and the nutty<br />
richness of crunchy English<br />
walnuts have made Aplets and<br />
Cotlets the Pacific Northwest’s<br />
most-beloved candy since 1920!<br />
An iconic brand in the Seattlearea<br />
for more than 30 years,<br />
Talking Rain is a Washingtonbased<br />
beverage company<br />
situated in the foothills of the<br />
Cascade Mountains. Talking<br />
Rain’s sustainable growth is<br />
attributed to the company’s<br />
ability to stay true to their<br />
JULY <strong>2019</strong>
vision and heritage, while<br />
continually improving and<br />
innovating their products.<br />
Wet Noses Dog Treats provide truly<br />
natural dog treats and food without<br />
a negative impact on the<br />
environment. They offer choices to<br />
pet parents that they can feel good<br />
about through our conscientious<br />
and food safety forward formulation,<br />
sourcing and production processes.<br />
They serve all their customers by<br />
exceeding their expectations by<br />
always putting them first.<br />
The history of MarketSpice can<br />
be traced back to a small tea<br />
and spice shop established in<br />
Seattle’s historic Pike Place<br />
Market in 1911. Over the years,<br />
we have offered our customers<br />
a large assortment of bulk teas<br />
and spices. MarketSpice is<br />
proud of its 100 flavorful years<br />
of history and continues to<br />
share the belief that “spice is<br />
the variety of life”.<br />
Stickers Northwest: Premium<br />
quality PNW related stickers,<br />
shirts and magnets for you to<br />
show off your love for the<br />
Northwest.<br />
Strideline Socks. The most<br />
comfortable sock on earth.<br />
Strideline’s mission is to<br />
provide athletes and polished<br />
individuals with distinctly<br />
colored, performance oriented<br />
crew socks that inspire a feeling<br />
of confidence and swagger<br />
unparalleled by any other sock<br />
company in the world.<br />
117<br />
www.businesschief.com
BARTELL DRUGS<br />
118<br />
“It’s interesting to be<br />
able to really change<br />
and move where our<br />
customers expect<br />
us to be, but then<br />
still embrace and<br />
celebrate the long<br />
history and deep<br />
roots of Bartell’s”<br />
—<br />
Kari Escobedo,<br />
IT, Bartell Drugs<br />
there’s a significant change management<br />
component we have to take into<br />
consideration,” Escobedo explains.<br />
“AI and machine learning. Those are big,<br />
scary words for many traditional<br />
retailers.” Currently, she is pursuing<br />
several proof-of-concept tests of<br />
predictive analytics and automation,<br />
which she hopes will help to demystify<br />
the functionality and experience of<br />
incorporating leading-edge technology<br />
for Bartell’s team.<br />
Looking forward, Escobedo relishes<br />
the chance to continue balancing<br />
JULY <strong>2019</strong>
119<br />
transformation and tradition. “It’s<br />
interesting to be able to really change<br />
and move where our customers expect<br />
us to be, but still embrace and celebrate<br />
the long history and deep roots of<br />
Bartell’s,” she says. “We’ve had some<br />
great accomplishments over the last<br />
six months. I’m super excited about the<br />
shift in thinking and the ideas that are<br />
coming from my technology team.<br />
Through the rest of this year, we are<br />
building a great foundation to continue<br />
to launch a more enhanced and<br />
personalized digital experience for our<br />
customers.” For the first 129 years<br />
of its existence, Bartell Drugs was<br />
shaped by a world that went from<br />
steam to the moon to the internet.<br />
The next 129 years of Bartell Drugs’<br />
history will be shaped by the initiatives<br />
that Escobedo and her team pursue<br />
over the next few years.<br />
www.businesschief.com
Your Safety...Our Commitment<br />
120<br />
JULY <strong>2019</strong>
121<br />
WRITTEN BY<br />
SOPHIE CHAPMAN<br />
PRODUCED BY<br />
ANDY TURNER<br />
www.businesschief.com
HEATH CONSULTANTS<br />
As the company focuses<br />
on digitally transforming its<br />
operations, Heath Consultants<br />
prioritizes sustainability<br />
across its functions<br />
122<br />
E<br />
stablished 86 years ago, Heath Consultants<br />
is now run by the third generation of the<br />
Heath family. The business is the premier<br />
leader in the natural gas leak detection industry,<br />
servicing utility companies “all the way from the<br />
well head to the burner tip”, explains Paul Wehnert,<br />
Senior Vice President of the Sales and Marketing<br />
unit. “Primarily, we’re a leak detection, underground<br />
utility locating service, and products manufacturing<br />
firm,” adds Wehnert.<br />
The company employs around 1,500 people<br />
across 44 states in the US, but has earned an<br />
international presence through the distribution<br />
of its products. A main aspect of the company’s<br />
operations is conducting leak surveys. “A leak<br />
survey primarily consists of a person walking<br />
around documenting on paper where they went<br />
and what they found. However, the industry is<br />
currently going through a transition from paper<br />
documentation to digital documentation,” remarks<br />
Jeff Tuttle, CEO of Heath Consultants. “The way<br />
in which we conduct these surveys is now all in<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
123
HEATH CONSULTANTS<br />
124<br />
“The industry<br />
is currently<br />
going through<br />
a transition<br />
from paper<br />
documentation<br />
to digital<br />
documentation”<br />
—<br />
Jeff Tuttle,<br />
CEO, Heath Consultants<br />
transition – whether the person is<br />
walking or driving by vehicle, the<br />
instrument readings, position of the<br />
person and detections are all recorded.”<br />
Heath is also expanding its<br />
technological footprint with the launch<br />
of its DP-IR Trainer, software that uses<br />
augmented reality to train workers how<br />
to conduct leak surveys.<br />
Beyond how the information is<br />
acquired and stored, the company is<br />
also expanding its analytics capabilities<br />
through a partnership with<br />
software development company<br />
Silicus. Heath is now able to evaluate<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘HEATH 2018 WORLD GAS CONFERENCE PRODUCT SHOWCASE’<br />
125<br />
the leak information, such as methane<br />
readings and pipe quality. “We can ask:<br />
‘Where are the risky sections of pipe?<br />
Where are they located?’ We can then<br />
provide a thesis or data source to that,”<br />
continues Tuttle.<br />
The company has leveraged its core<br />
gas detection technology and connected<br />
it with a cloud analytics<br />
package. This enables oil producers to<br />
then conduct Leak Detection and<br />
Repair (LDAR) work, which often takes<br />
places in remote areas. The industry is<br />
shifting from using portable technologies<br />
that an individual would carry to<br />
technology that is connected to the<br />
internet, such as data logging, GPS<br />
and the cloud. “We still have portable<br />
platforms, but connected portable<br />
platforms. We have mobile platforms<br />
where we have vehicles that drive<br />
around a city network, and we have<br />
aerial platforms like drones and UAVs,”<br />
says Tuttle. The CEO highlights the<br />
introduction of connected methane<br />
sensors placed amongst city grids,<br />
available on a 24/7 basis.<br />
However, the role of analytics has<br />
a much greater presence in the<br />
company’s overall business strategy.<br />
www.businesschief.com
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“It’s also important<br />
from a digital<br />
transformation<br />
perspective to<br />
collect data on<br />
the performance<br />
of our technicians”<br />
—<br />
Ken Cowher,<br />
Vice President of Operations for the<br />
Service unit, Heath Consultants<br />
“For us on the operations side, it’s also<br />
important from a digital transformation<br />
perspective to collect data on the<br />
performance of our technicians,”<br />
notes Ken Cowher, Vice President of<br />
Operations for Heath’s Service unit.<br />
“It is important we have a standardized<br />
and automated way of doing that to<br />
ensure we get good quality data we can<br />
run predictive analytics on. This allows us<br />
to proactively manage our crews and<br />
make them as efficient as possible.”<br />
Cowher explains that all service operations<br />
lie within a competitive bid industry,<br />
which in turn means that efficiency is key.<br />
127<br />
EXECUTIVE PROFILE<br />
Jeffrey Tuttle, CEO<br />
Jeffrey Tuttle has worked in various capacities within the<br />
utilities sector for over 30 years. Prior to joining Heath he<br />
served as General Manager for Greer Commission of Public<br />
Works where he directed the company’s day-to-day<br />
operations and long-term direction of all utility operations.<br />
He has served on various association’s Board of<br />
Directors including Piedmont Municipal Power Agency<br />
(PMPA), American Public Gas Association (APGA),<br />
Blue Ridge Scouting Council, and Greer Relief.<br />
From 2011 to 2012, he served as the Chairman<br />
of American Public Gas Association (APGA)<br />
and Texas Gas Association.<br />
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anz.businesschief.com
HEATH CONSULTANTS<br />
128<br />
JULY <strong>2019</strong>
The company uses Microsoft’s Azure<br />
cloud to host many of its systems,<br />
including RMLD-Remote Emissions<br />
Monitoring. Heath is piloting the<br />
sensor-based technology that enables<br />
it to monitor for leaks 24/7. The firm is<br />
almost ready to introduce its Leak<br />
Survey Analytic, also based in Azure,<br />
which harbors the data from thousands<br />
of surveys. “Every detail over time is<br />
captured and made available at a click<br />
so we can analyze the quality of the<br />
survey, the completeness of the survey<br />
and provide some of the risk factors<br />
that feed into some of these pipeline<br />
risk models,” Tuttle comments.<br />
Heath has also partnered with Novara<br />
Geosolutions, the asset management<br />
products and services company.<br />
“We’re working with them to develop<br />
a field application for our leak survey<br />
technicians to use. It will integrate with<br />
customer facility mapping and track<br />
breadcrumb indications of the leak<br />
surveyor and the path that they take<br />
over the pipeline. It will include indications<br />
that we find, abnormal operating<br />
conditions – anything that would be a<br />
reportable situation from the survey –<br />
and feed that information back to the<br />
customer whilst connecting with our<br />
129<br />
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illing system,” explains Tuttle.<br />
As well as addressing technology<br />
transformation within its operations,<br />
Heath Consultants is also becoming<br />
very aware of sustainability issues in<br />
its industry. “The industry is really<br />
going through a major transition with<br />
emission reduction – it grew up doing<br />
the surveys from a safety standpoint,<br />
assessing the potential hazards of gas<br />
leaks in homes and buildings. Heath<br />
grew up with the paramount mission to<br />
find the dangerous leaks, help utilities<br />
and mitigate them by repairing the pipe.<br />
Now with the concerns over climate<br />
1933<br />
Year founded<br />
1,500<br />
Approximate number<br />
of employees<br />
HQ<br />
Houston, Texas<br />
131<br />
EXECUTIVE PROFILE<br />
Ken Cowher, Vice President, Operations<br />
Ken Cowher joined Heath in 1992 as a Field Technician with<br />
a degree in Earth Sciences from Clarion University of<br />
Pennsylvania. Ken managed the Northeast Division for<br />
Heath for nearly twenty years and created a successful<br />
corporate culture that other regions in the company strive<br />
to imitate. After promotion in 2017 to Vice President of<br />
Process Improvement and Service <strong>Business</strong> Unit Support,<br />
Ken’s clear understanding of Heath’s values, corporate<br />
mission and excellent leadership skills made him the clear<br />
choice for another promotion to his current position.<br />
Ken is responsible for all aspects of our field service<br />
division including safety, training & development,<br />
quality assurance and field operations.<br />
www.businesschief.com
HEATH CONSULTANTS<br />
132<br />
“The industry<br />
is really going<br />
through a major<br />
transition<br />
with emission<br />
reduction”<br />
—<br />
Jeff Tuttle,<br />
CEO, Heath Consultants<br />
change, methane is one of the gasses<br />
that is of most concern – this gas can<br />
leak from any point along the chain.<br />
We’re trying to reduce that,” says Tuttle.<br />
Working from the well pad up, the<br />
company goes through various<br />
processes in moving and producing<br />
the gas which emits the most greenhouse<br />
gases. “The well head, the well<br />
and the tank battery which the oil is<br />
stored in are all prone to emitting the<br />
JULY <strong>2019</strong>
133<br />
gasses that come along with the oil.<br />
There’s quite a bit of focus, activity and<br />
research on gas detection and we are<br />
participating in that emerging technology,”<br />
Tuttle says.<br />
With Heath focusing on its digital<br />
transformation journey, the firm sees<br />
itself at the centre of a digital future.<br />
“Our company’s operations will us more<br />
fix sensor technologies and more<br />
autonomous type activities. We’ll be<br />
exploring a lot of that with vehicles and<br />
UAVs, with autonomy providing safety<br />
inspections of these safety grids within<br />
these smart cities,” says Paul.<br />
Your Safety...Our Commitment<br />
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TRANSFORMING<br />
134<br />
SUPPLY CHAIN<br />
STRATEGIES<br />
WRITTEN BY<br />
SEAN GALEA-PACE<br />
PRODUCED BY<br />
JUSTIN BRAND<br />
AT GEODIS<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
135
GEODIS<br />
Phillipe Mahler, <strong>Chief</strong> Procurement<br />
Officer of GEODIS, discusses how<br />
his company is utilising technology<br />
amidst a digital transformation<br />
136<br />
A<br />
s businesses across the globe are impacted<br />
by digital transformation, companies in<br />
a diverse range of industries are tasked<br />
with undergoing a technological change in order to<br />
accelerate processes. Phillipe Mahler, <strong>Chief</strong> Procurement<br />
Officer (CPO) of freight transportation and<br />
logistics firm GEODIS, understands the importance<br />
of embracing technology in a bid to ease operations.<br />
Since first joining GEODIS in January 2010 as<br />
High-Tech Key Accounts Director, Mahler worked in<br />
a variety of different roles, such as Corporate Market<br />
Director and Transformation Director, before moving<br />
into his current position as CPO in early 2013. Split<br />
into five different lines of business, GEODIS’ operations<br />
include Freight Forwarding, Distribution and<br />
Express, Road Transport, Contract Logistics and<br />
Supply Chain Optimisation (SCO) which manages<br />
its customers’ supply chain by offering end-to-end<br />
solutions, enabled by the company’s processes,<br />
systems, infrastructure and personnel. Heading up<br />
the operations and procurement division, Mahler<br />
recognises the value of utilising his experience in<br />
supply chain to help him succeed in his current role.<br />
“My previous experience has allowed me to better<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
137
GEODIS<br />
138<br />
“Our mission is to<br />
solve and assemble<br />
resources, capabilities<br />
and technologies,<br />
and to better design<br />
the supply chain<br />
on behalf of<br />
our customers”<br />
—<br />
Phillipe Mahler<br />
CPO, GEODIS<br />
understand the key drivers of the supply<br />
chain. After you’ve dealt with several<br />
customers and experienced different<br />
situations, you can take the time to<br />
innovate and begin to understand where<br />
the key areas are. I manage these key<br />
points very carefully because they’re<br />
either the points which are going to<br />
create difficulties in operations or the<br />
points which you can leverage to create<br />
value,” he says. “Our mission is to solve<br />
and assemble resources, capabilities<br />
and technologies, and to better design<br />
the supply chain on behalf of our<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘GEODIS – WE LOGISTIC YOUR GROWTH’<br />
139<br />
customers. We buy services, resources<br />
and technologies from the market and<br />
from our sister lines of business or from<br />
any other logistics service provider. We<br />
assemble these solutions to create an<br />
end to end network for our customers.”<br />
With the procurement function transforming<br />
on an ongoing basis, Mahler<br />
reflects how GEODIS is changing the<br />
way it conducts its business to coincide<br />
with the latest industry trends. “On an<br />
increasing basis, procurement is<br />
becoming more of a science that is<br />
based on data. It’s based on being<br />
capable of forecasting what’s going to<br />
happen in the next six months to two<br />
years. Forecasting is taking the data<br />
from the past and then leveraging all<br />
the data announcing the trends and<br />
looking at how the world will change,”<br />
he explains. “I believe one of the biggest<br />
challenges is transitioning from human<br />
negotiation into a business which<br />
scientifically predicts where you should<br />
go. It’s a huge challenge; it’s the leveraging<br />
of Big Data.”<br />
INTRODUCING TECHNOLOGY<br />
With technology enabling GEODIS to<br />
make its processes simpler, Mahler<br />
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141<br />
reflects on how the procurement<br />
process has been transformed by<br />
digitalisation. “In the past, procurement<br />
was a question of understanding where<br />
the data was and then deciding at what<br />
price it could be bought from the market.<br />
It’s always been a question of simulation<br />
and has all been done manually using<br />
Excel,” he says. “These days, we’re<br />
able to capture much more data because<br />
it’s all in one place and technology has<br />
allowed us to use machines that help<br />
us make decisions. Using the machine,<br />
you can do a ‘what if’ in a machine<br />
scenario which helps decide where<br />
you want to go and how you want to<br />
execute the processes.”<br />
With innovation considered a key<br />
priority at GEODIS, Mahler understands<br />
the importance of ensuring technology<br />
is adopted for a specific purpose that<br />
will benefit the company’s operations<br />
– and is not merely implemented for its<br />
own sake. “When we want to utilise<br />
new technology, the first thing I always<br />
do is to have a discussion with a group<br />
of key users of the current platform<br />
and we conduct an evaluation. We have<br />
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GEODIS<br />
142<br />
JULY <strong>2019</strong>
“On an increasing<br />
basis, procurement is<br />
becoming more of<br />
a science that is based<br />
on data. It’s based<br />
on being capable of<br />
forecasting what’s<br />
going to happen in<br />
the next six months<br />
to two years”<br />
—<br />
Phillipe Mahler,<br />
CPO, GEODIS<br />
143<br />
www.businesschief.com
GEODIS<br />
“When you adapt, you’re<br />
already a follower. We don’t<br />
want to be followers; we<br />
want to be the leaders”<br />
—<br />
Phillipe Mahler,<br />
CPO, GEODIS<br />
144<br />
to ask ourselves what we can do with<br />
this current machine and how we can<br />
implement new technology that will<br />
enhance what we already have,” explains<br />
Mahler. “We have to establish an<br />
immediate need and ask ourselves that<br />
if we use this technology, will it bring us<br />
value today, tomorrow or in the future?<br />
It’s important to think about where we<br />
want to be in two years’ time and<br />
understand how what we’re doing now<br />
will fit into that. When you have an<br />
immediate value, you have future<br />
potential value and, based on these two<br />
results, we’ll then make a decision whether<br />
we want to adopt this technology.”<br />
GEODIS has been recognised as<br />
a ‘Leader’ by information technology<br />
research and advisory firm Gartner in<br />
its May 2018 Magic Quadrant for Third-<br />
Party Logistics (3PL) worldwide, which<br />
evaluates third-party logistics providers’<br />
ability to be a preferred global provider.<br />
With the company conducting business<br />
in the US, India and Haiti, technology has<br />
enabled each individual team to communicate<br />
immediately and has allowed daily<br />
operations to be sped up significantly.
145<br />
FORMING KEY PARTNERSHIPS<br />
In order to achieve mutual success,<br />
GEODIS has formed over 500 global<br />
partnerships. In particular, the firm has<br />
established a key relationship with the<br />
Commercial Relocation Network (CRN).<br />
“Our collaboration with CRN has granted<br />
us access to specialists everywhere in<br />
the US. Be it in California, Arkansas,<br />
Seattle, New York or Miami, we have<br />
access to people who really know our<br />
business and know what our specifics<br />
are – it’s very valuable to us,” says Mahler.<br />
“In general, we have lots of partners.<br />
Some are very local, while some are<br />
global and are capable of carrying<br />
goods from Singapore to Mexico. We<br />
really have all sizes of partnership.”<br />
The importance of establishing significant<br />
relationships with other companies<br />
to achieve mutual success is<br />
therefore considered a top priority at<br />
GEODIS. “Due to the way we operate<br />
our procurement activity, we’ve started<br />
to move away from the customer/supplier<br />
relationship. We don’t think ‘I’m your<br />
customer so you go and execute.’ Or ’I’m<br />
your supplier so you pay or I don’t<br />
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GEODIS<br />
146<br />
execute’. Those days are gone,” he says.<br />
“Before beginning a partnership, it’s<br />
important to trust each other. You need<br />
to accept some level of transparency<br />
on the cost and what’s possible, as well<br />
as deciding what can and can’t be<br />
optimised. Once you’re there, you’re in<br />
a relationship which is completely different<br />
from a typical, traditional customer<br />
relationship because you’re together<br />
in the same boat, facing the same challenges<br />
and are both trying to create value<br />
for each company, as well as seeking<br />
the best result for the final customer.”<br />
FUTURE PLANS<br />
Looking to the future, Mahler is aiming<br />
to ensure GEODIS continues to lead<br />
the way and set trends in order to stay<br />
ahead of the competition. “We’re<br />
passionate about our business, have<br />
proven experience and possess a truly<br />
global presence. I believe those three<br />
things are what make us different from<br />
our rivals. It’s vital to have the best<br />
people working for us and investing in<br />
people is something we rank very highly<br />
at our company. We’re always on<br />
the lookout for new talent, as well as<br />
retaining what we already have through<br />
JULY <strong>2019</strong>
147<br />
providing our staff with the opportunity<br />
to progress, change position or relocate<br />
to another part of the world. Innovation,<br />
technology and the people are considered<br />
our three key pillars,” he says. “At<br />
SCO we benchmark our solutions,<br />
approach and IT tools, and consistently<br />
look at the external world to understand<br />
what’s coming. Adapting is a word from<br />
the past. When you adapt, you’re already<br />
a follower. We don’t want to be followers;<br />
we want to be the leaders.”<br />
www.businesschief.com
148<br />
Future proof<br />
digital<br />
transformation<br />
security for<br />
the enterprise<br />
WRITTEN BY<br />
HARRY MENEAR<br />
PRODUCED BY<br />
JAKE MEGEARY<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
149
CANADIAN WESTERN BANK<br />
150<br />
Cory Gould, the first<br />
CISO at Canadian<br />
Western Bank FInancial<br />
Group, discusses using<br />
cutting-edge technology,<br />
relationship building<br />
and user awareness<br />
to combat cyberthreats<br />
and help realize the<br />
company’s bold vision<br />
T<br />
he world is evolving. The<br />
proliferation of digital devices,<br />
mass migration to the cloud,<br />
and a rising tide of data is changing the<br />
nature of the enterprise. In few verticals<br />
is this truer than the banking and<br />
finance sector. Bank vaults piled high<br />
with paper money are being replaced<br />
by digital vaults, in-person meetings at<br />
a local branch are giving way to 24/7<br />
mobile banking solutions, and major<br />
banking houses are facing serious<br />
competition from a new generation<br />
JULY <strong>2019</strong>
151<br />
of digital-only ‘challenger banks’. Digital<br />
transformation means new opportunities,<br />
greater efficiency and insight into<br />
the business ecosystem, but every<br />
paradigm shift brings new challenges.<br />
According to the Ninth Annual Cost<br />
of Cybercrime Study, released in<br />
March <strong>2019</strong> by Accenture, the methods,<br />
targets and impact of cyber attacks<br />
is evolving at an accelerated pace.<br />
In 2018, the report found, the average<br />
cost of cybercrime to companies rose<br />
by 12% year on year to US$13mn.<br />
“We appreciate that this is the new<br />
world; things are changing and they’re<br />
changing very, very quickly,” says<br />
Cory Gould, <strong>Chief</strong> Information Security<br />
Officer (CISO) at Canadian Western<br />
Bank (CWB) Financial Group. “20 years<br />
ago, we were concerned with things<br />
like debit skimming - manual, tactical<br />
ways of committing fraud. Now, the<br />
proliferation of digitization and the<br />
sheer accessibility of financial services<br />
remotely and somewhat anonymously<br />
is certainly driving the rise of cybercrime.<br />
www.businesschief.com
CANADIAN WESTERN BANK<br />
We’ve seen a significant rise in the<br />
levels of organization, structure and<br />
sophistication of these threats.”<br />
One of the youngest banks in<br />
Canada, CWB Financial Group is<br />
headquartered in Edmonton, Alberta<br />
and positions itself as the top choice<br />
for Canadian enterprises in search<br />
of expert advice delivered through<br />
a relationship-based approach. “Our<br />
size provides us with a level of agility<br />
that is allowing us to respond to change<br />
in the industry,” says Gould, who<br />
started at CWB Financial Group in 1997,<br />
and became the first CISO in the<br />
bank’s history in December 2018.<br />
“The financial industry has been fairly<br />
static for a century. Over the last 15<br />
years, however, we’ve seen a real shift<br />
in the demands of our clients. Traditional<br />
banking isn’t fitting the bill anymore,”<br />
he explains.” We sat down with him to<br />
explore the approach Gould is taking<br />
towards neutralizing cyber threats to<br />
CWB Financial Group as it continues<br />
to grow at an industry-leading rate<br />
152<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘CWB – OBSESSED WITH YOUR SUCCESS’<br />
153<br />
(recently surpassing the $30bn total<br />
asset milestone for the first time) alongside<br />
the global digital banking revolution.<br />
“We’re on the cusp of something<br />
really special,” enthuses Gould.<br />
“Increasingly, we’re being recognized<br />
for the value that we bring to our<br />
clients.” As the first CISO in CWB’s<br />
history, Gould is part of a bold and<br />
innovative shift in the bank’s own<br />
culture. A crucial success factor, he<br />
explains, is establishing an enterprise<br />
architecture in which security methodology<br />
is embedded at the initial stage.<br />
“It’s a really big win and, I think, critical<br />
“We’ve seen a<br />
significant rise<br />
in the levels of<br />
organization,<br />
structure and<br />
sophistication<br />
of these threats”<br />
—<br />
Cory Gould,<br />
CISO, Canadian Western Bank<br />
www.businesschief.com
CANADIAN WESTERN BANK<br />
156<br />
for an organization as they move<br />
forward,” says Gould, admitting that<br />
CWB Financial Group had experienced<br />
challenges maintaining strong relationships<br />
between security and leadership<br />
before, “because we didn’t have a senior<br />
dedicated role for information security.<br />
It’s <strong>2019</strong>. Nobody is going to deny the<br />
need for security, but it’s very easy for<br />
security to take a backseat in the wake<br />
of rapid change. Now, we have a senior<br />
security leader out in the organization,<br />
pounding the pavement and building<br />
relationships with key decision makers,<br />
positioning us to be much more<br />
proactive with respect to security.”<br />
This closer, more collaborative<br />
relationship with the enterprise and<br />
technology side of CWB Financial<br />
Group is also driving a shift in the<br />
philosophy of the security side of<br />
the business. The traditional role of<br />
a security division as a deterrent,<br />
Gould explains, simply isn’t the best<br />
way forward in the modern world.<br />
“Gone are the days when security just<br />
pounds its fist on the desk and says<br />
‘No! Come back later.’ That’s not<br />
practical in the digital world we live in.”<br />
The rapid advancement of technology<br />
JULY <strong>2019</strong>
is at the center of CWB’s progress,<br />
and Gould’s mantra of “enable not<br />
deter” reflects it. Technology, he<br />
contends, may be creating both<br />
business and cybercriminal opportunity,<br />
but it is also enabling and<br />
empowering security. Stronger<br />
relationships between the security<br />
and business elements of CWB<br />
Financial Group is at the core of this.<br />
“Our ability to sit at the table with the<br />
business, talk through their needs<br />
and challenges, and offer up technology<br />
solutions we know are inherently<br />
secure, brings to them functionality 157<br />
EXECUTIVE PROFILE<br />
Cory Gould<br />
<strong>Chief</strong> Information Security Officer<br />
Cory Gould is the <strong>Chief</strong> Information Security Officer<br />
at CWB Financial Group, a diversified organization<br />
providing specialized business and retail financial<br />
services across Canada. Mr. Gould has over 20 years<br />
experience in Information Technology and Security<br />
primarily within the Financial industry and as the<br />
first CISO at CWB Financial Group, is working<br />
to mature the Information Security practice by<br />
embedding sound security awareness and behaviours<br />
within the culture of the organization.<br />
www.businesschief.com
CANADIAN WESTERN BANK<br />
158<br />
“Our size provides us<br />
with a level of agility<br />
that is allowing us to<br />
respond to change<br />
in the industry”<br />
—<br />
Cory Gould,<br />
CISO, Canadian Western Bank<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
159
161<br />
and capability they’ve never had<br />
before,” Gould explains.<br />
Rapid and ongoing digital transformation<br />
has become the day to day<br />
reality for any enterprise seeking to<br />
stay abreast of the information<br />
revolution. Gould recognizes the power<br />
of employing technology to automate<br />
day to day operations in an institution,<br />
as well as process data to generate the<br />
kind of insights that lead to high-level<br />
decisioning. The key to both applications<br />
is artificial intelligence (AI) and<br />
machine learning. “One of the key<br />
things to enable is machine learning.<br />
We are absolutely neck deep in data<br />
and analytics like everyone else on<br />
the planet. The more dependent we,<br />
as an organization, become on our data<br />
and knowledge, the more it becomes<br />
currency. So, we’re using it within our<br />
information security program to gain<br />
intel and understanding,” Gould explains.<br />
In addition to boosting the detection<br />
and insight gathering capabilities of<br />
CWB’s security department, AI and ML<br />
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CANADIAN WESTERN BANK<br />
162<br />
is set to play a key role in automation.<br />
“Like any other position in IT, there are<br />
the necessary evils of day-to-day<br />
operational activities,” Gould notes.<br />
“With those ongoing, almost mundane<br />
tasks that we have to perform, there is<br />
the risk of human error. Any time that<br />
you can remove that day-to-day work<br />
that just needs to be done from very<br />
capable resources and have them<br />
focus on the big picture, it’s valuable.”<br />
Striving for a near-perfect security<br />
architecture is no mean feat, and Gould<br />
recognizes that CWB Financial Group<br />
cannot stand against the rising tide of<br />
cybercrime alone. “We rely on strong<br />
partners who have a genuine interest<br />
in our success; FireEye is one of those<br />
partners. FireEye sees the world of<br />
Cyber Security through the eyes of<br />
active threat actors. It is this relevant,<br />
real world experience that is assisting<br />
CWB Financial Group in meeting our<br />
Cyber Security objectives,” he explains.<br />
Every year, driven by experience,<br />
artificial intelligence and increasingly<br />
sophisticated software, cybersecurity<br />
solutions reach closer and closer to<br />
infallibility. “With the inception of AI, ML<br />
and all of the things that we’re able to<br />
do with technology today, there’s a lot<br />
JULY <strong>2019</strong>
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163
CANADIAN WESTERN BANK<br />
“With the inception<br />
of AI, ML and all of<br />
the things that we’re<br />
able to do with<br />
technology today,<br />
there’s a lot that<br />
can be prevented”<br />
—<br />
Cory Gould,<br />
CISO, Canadian Western Bank<br />
that can be prevented.” However, as<br />
technology grows more sophisticated,<br />
the most common vulnerability for an<br />
organization grows more obvious: the<br />
human element. According to Accenture’s<br />
report, “Whether by accident or<br />
intent, many employees are often the<br />
root cause of successful cyberattacks.”<br />
While security systems and protocols<br />
can be updated and tweaked on a daily<br />
basis, Gould points out: “You can’t<br />
patch humans. Humans are vulnerable,<br />
passionate and intellectual; they don’t<br />
164<br />
JULY <strong>2019</strong>
think in terms of bits and bytes and<br />
ones and zeros, so people make<br />
mistakes and we recognize that.” In<br />
order to shore up this potential weak<br />
point, Gould is turning to the flagship<br />
skill in his arsenal: relationship building<br />
and management. “It wasn’t until one of<br />
our more recent and most significant<br />
initiatives that we really recognized how<br />
important change management is,” he<br />
recalls. “Now, one of the most critical<br />
tools in our security toolkit is our User<br />
Awareness Program.<br />
We spend a lot of time with the organization<br />
educating, bringing about greater<br />
awareness. We know that we will never<br />
be 100% in that area but will continue<br />
working with the business and our<br />
internal clients to keep security at the<br />
forefront of the way CWB Financial<br />
Group operates.”<br />
The threat of cybercrime is only<br />
expected to rise, and the constant arms<br />
race of technology, training and<br />
relationship building shows no signs<br />
of slowing down. Looking to the future,<br />
165<br />
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CANADIAN WESTERN BANK<br />
166<br />
JULY <strong>2019</strong>
Gould has the responsibility of ensuring<br />
that CWB Financial Group remains agile<br />
and responsive, even as it continues to<br />
scale. With phishing and ransomware<br />
replacing cheque fraud and men with<br />
guns in balaclavas, Gould and his team<br />
are on the front line, protecting CWB<br />
Financial Group as it strives towards<br />
greatness. Reflecting on over 20 years<br />
at the bank, Gould looks ahead filled<br />
with confidence and optimism. “As an<br />
organization, we pride ourselves on<br />
listening intently and asking the right<br />
questions to provide our clients with the<br />
right financial solutions. We are<br />
obsessed with our clients’ success and<br />
our proactive approach to supporting<br />
them, and we are obsessed with<br />
ensuring that the information they<br />
entrust us with remains confidential and<br />
secured,” he says. “It’s a bold vision but<br />
I think it’s achievable. I’ve spent my<br />
career here and I can honestly say that<br />
when this group of great individuals<br />
puts its mind to something, there’s little<br />
that gets in the way.”<br />
167<br />
www.businesschief.com
168<br />
VALUES<br />
DRIVING CASHCO<br />
FINANCIAL’S DIGITAL<br />
TRANSFORMATION<br />
WRITTEN BY<br />
HARRY MENEAR<br />
PRODUCED BY<br />
JAKE MEGEARY<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
169
CASHCO FINANCIAL<br />
Raymond Wilson, COO of<br />
Cashco Financial, discusses<br />
the company’s five core values<br />
and how they are driving<br />
the digital transformation<br />
of its customer journey<br />
170<br />
T<br />
oday, more than 30% of Canadians are<br />
living from paycheque to paycheque.<br />
The number of people in debt is rising too,<br />
with the Bank of Canada reporting in May 2018<br />
that the average Canadian typically owes around<br />
CA$1.70 for every dollar they own. Canadians are<br />
not just struggling financially: according to a report<br />
by NBC, financial pressure and consequential<br />
stress can both directly and indirectly affect mental<br />
and physical health. Millions of underbanked<br />
Canadians are in need of banking and money<br />
management services, of short-term loans to make<br />
it to the next paycheque, and of long-term services<br />
to nurture and support their aspirations.<br />
The idea of Cashco has been rooted in a number<br />
of businesses founded by the company’s CEO,<br />
Tim Latimer. Cashco Financial as it exists today has<br />
been around for a decade delivering alternative<br />
financial services to the citizens of British Columbia,<br />
Alberta, Saskatchewan and Ontario, both through<br />
brick and mortar and online – providing over<br />
140,000 clients with long and short-term personal<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
171
CASHCO FINANCIAL<br />
172<br />
“We work hard<br />
to make sure<br />
these are living,<br />
breathing values<br />
embodied<br />
throughout the<br />
organization”<br />
—<br />
Raymond Wilson,<br />
COO, Cashco Financial<br />
loans, cheque cashing and, as of 2017<br />
in Alberta, banking services. “Over the<br />
course of our history our business<br />
model has continued to evolve, at<br />
a time we were focused solely on<br />
providing access to payday loans,<br />
then added and evolved to installment<br />
products, and now we’re focused<br />
on bringing banking services to our<br />
clients. There isn’t a one size fits all<br />
solution to our clients banking needs<br />
so we work to offer banking-like<br />
products that can offer support to<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘CASHCO MOM’S REALITY’<br />
173<br />
people that can’t get help anywhere<br />
else,” says Raymond Wilson, <strong>Chief</strong><br />
Operating Officer (COO) at Cashco.<br />
Wilson, who has served in his current<br />
role for three years, is able to bring<br />
a powerful sense of empathy to the<br />
company’s relationship with the numerous<br />
underserved families and individuals<br />
across the country. “I grew up in a<br />
single parent home; my mother raised<br />
myself and my brother, and there were<br />
many times I could see the stress on<br />
her face as she was trying to feed and<br />
clothe the both of us,” he recalls.<br />
“I really feel passionate about the<br />
subprime loans market because I can<br />
connect with the customers. There<br />
were plenty of days growing up when<br />
there was nothing in the fridge. I know<br />
where they’re coming from.”<br />
Cashco serves its clients by working<br />
tirelessly to embody its five core<br />
values: Respect the vision, Embrace<br />
Can I, Live the Golden Rule, Own the<br />
Results and Communicate Honestly.<br />
The core values set the expectations<br />
www.businesschief.com
CASHCO FINANCIAL<br />
174<br />
for staff on how Cashco employees<br />
behave and treat each other. “We work<br />
hard to make sure these are living,<br />
breathing values embodied throughout<br />
the organization,” says Wilson. “The<br />
organization moves quickly, and we<br />
have a big job to do. If we don’t have<br />
clear expectations of ourselves and<br />
the people around us, it’s very hard<br />
to do what we do every day.”<br />
Over the last 5 years Cashco<br />
introduced a decision engine that takes<br />
all the data feed into it and works to<br />
make better predictions on client’s<br />
likelihood of honoring their financial<br />
commitment to them. “At the time, it was<br />
transformational for our business, today<br />
it means we can make better decisions<br />
on affordability and support our clients<br />
need in order to help them maintain a<br />
positive relationship with their money.”<br />
That technology now needs to be<br />
monitored and adjusted continuously<br />
to ensure that, first, clients keep moving<br />
along their credit journey, and second,<br />
that Cashco builds a sustainable<br />
business that can be around for many<br />
years serving the underserved and<br />
underbanked. This technology is heavily<br />
based on artificial intelligence/machine<br />
JULY <strong>2019</strong>
learning that speeds up the delivery<br />
and removes friction from the client’s<br />
journey with Cashco.<br />
One of the largest challenges that<br />
Wilson recognizes is the preservation<br />
of the empathetic, personal experience<br />
as Cashco increases its digital offerings.<br />
“We know we can be successful when<br />
the client sits down at the desk and we<br />
have a conversation. But, as we move<br />
into a more digital age, we need to start<br />
looking at other ways to create those<br />
touchpoints and still maintain that<br />
relationship while the client benefits<br />
from the accessibility of digital products,”<br />
he says. The company’s efforts range<br />
from simple steps, like attaching an<br />
employee’s picture to an email to<br />
humanize the interaction for the client,<br />
to the construction of an entirely new<br />
portal to allow for easy access to<br />
account information and Cashco’s new<br />
banking services. Rather than cold<br />
functionality that widens the distance<br />
between Cashco and its customers,<br />
Wilson sees the “exponential growth<br />
of technological applications” as an<br />
enabler for increasingly personalised<br />
and empathetic services. “We’re<br />
utilizing technology to make our<br />
175<br />
EXECUTIVE PROFILE<br />
Raymond Wilson<br />
Raymond Wilson has been with Cashco Financial<br />
for 10 years where he started as a VP managing the<br />
branch network. In 2016 he was promoted to <strong>Chief</strong><br />
Operating Officer and now oversees all operations.<br />
He has worked in this market for almost thirty<br />
years and is very passionate about what Cashco<br />
stands for and the people they serve.<br />
Wilson has four beautiful children and<br />
has been married to his wife Leslie for<br />
13 years. He is also an avid golfer and<br />
enjoys the outdoors with his family.<br />
www.businesschief.com
CASHCO FINANCIAL<br />
176<br />
140,000<br />
Clients served<br />
2009<br />
Year founded<br />
HQ<br />
Edmonton, Alberta<br />
Canada<br />
JULY <strong>2019</strong>
customer journey as painless as<br />
possible,” he explains.<br />
In particular, Cashco is employing<br />
analytics and artificial intelligence (AI)<br />
to both empower the front end of its<br />
business and augment its back-end<br />
decision making. “We use AI for our<br />
loan decisioning, which we’re constantly<br />
tuning to make more efficient, and<br />
twinning with our analytics to create a<br />
higher loan completion and closing rate,”<br />
says Wilson. Cashco has also made<br />
the decision to build its AI in-house.<br />
“Our CEO has the entrepreneurial spirit,”<br />
Wilson explains. “With that comes quick<br />
change; this way we don’t have to wait<br />
to make alterations the way we would<br />
if you bought something off the shelf.<br />
We acknowledge that there’s a cost to<br />
doing things in-house, but it allows us<br />
to be much more agile.”<br />
AI also plays a critical role in Cashco’s<br />
latest project: applying decision making<br />
to the loan recovery process. “We’re<br />
working with another company to bring<br />
AI into our recovery and collections<br />
department,” says Wilson. “If clients<br />
are unable to make a payment, there’s<br />
a reason for that. AI can help us<br />
understand not only how to best<br />
communicate with people, but how<br />
177<br />
www.businesschief.com
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For more information please contact:<br />
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© <strong>2019</strong> Rogers Communications.
CLICK TO WATCH: ‘CHRISTINA’S REAL WORLD STORY’<br />
179<br />
to help them ensure they can complete<br />
their loans with us.”<br />
To maintain relevancy Cashco has<br />
recently mapped out the strategic<br />
direction for the next three years,<br />
identifying the necessary business<br />
decisions in order to compete in their<br />
space – knowing the space continues<br />
to grow and demand is increasing.<br />
“A digital Cashco is imperative, and<br />
we have it centered around the idea<br />
of digital client-care services,” says<br />
Wilson. “Overall, our digital ecosystem<br />
is focused on leveraging our data, and<br />
“Respect the<br />
Vision, Embrace<br />
Change, Live<br />
the Golden Rule,<br />
Own the Results<br />
and Communicate<br />
Honestly”<br />
—<br />
Raymond Wilson,<br />
COO, Cashco Financial<br />
www.businesschief.com
CASHCO FINANCIAL<br />
180<br />
CLICK TO WATCH: ‘ELISIA’S REAL WORLD STORY’<br />
advanced analytics platforms are built<br />
together so decision making is driven<br />
by the business, and AI/machine<br />
learning will be the driving factor is<br />
producing sound recommendations<br />
to guide the process.”<br />
The entire enterprise is designed to<br />
accommodate and exceed the needs<br />
and expectations of the underserved.<br />
Cashco provides relief today by<br />
making it easy to get an immediate loan<br />
regardless of current or past credit<br />
history. The company accepts its<br />
“We’re utilizing<br />
technology<br />
to make our<br />
customers’ journey<br />
as painless as<br />
possible”<br />
—<br />
Raymond Wilson,<br />
COO, Cashco Financial<br />
JULY <strong>2019</strong>
181<br />
clients, wherever they are on their<br />
journey. Due to the multiple solutions it<br />
offers, Cashco is the only finance<br />
company that can help move clients<br />
through the entire credit continuum to<br />
achieve a better credit rating and<br />
create hope for tomorrow.<br />
Looking to the future, Cashco<br />
Financial has bold ambitions. “Our big,<br />
hairy, audacious goal is to be recognized<br />
as a new, different kind of bank<br />
by 2025,” Wilson concludes. “We’re<br />
going to build a forward-looking<br />
resilient business with a loan book of<br />
$250mn by 2021, serving underbanked<br />
Canadians with subprime loans, and<br />
continue to offer meaningful banking<br />
delivered through advice-based,<br />
intimate, one-to-one relationships.”<br />
www.businesschief.com
182<br />
Enabling<br />
technology<br />
transformation<br />
to the<br />
JULY <strong>2019</strong>
cloud<br />
183<br />
WRITTEN BY<br />
SOPHIE CHAPMAN<br />
PRODUCED BY<br />
JAKE MEGEARY<br />
www.businesschief.com
INGRAM MICRO<br />
As the technology industry<br />
evolves, Ingram Micro<br />
continues to enable digital<br />
transformation with the cloud<br />
184<br />
I<br />
ngram Micro is an emergent leader in<br />
the global technology sector; dedicated<br />
to enabling its customers and its entire<br />
organization to achieve technological transformation.<br />
“Technology underpins our organization and<br />
the pressure is on to get it right. To achieve a<br />
competitive advantage, companies must align with<br />
the evolving landscape. Ingram Micro is well poised<br />
to meet the demands of this evolution,” says Greg<br />
Onoprijenko, Director of Cloud for the company’s<br />
Canada operations. “We’re continuously innovating<br />
to maintain relevancy for our customers and our<br />
entire organization.”<br />
As the world’s largest technology distributor, the<br />
company provides a wide array of products to its<br />
customers including laptops, smartphones, printers<br />
and IT infrastructure and services to its wide variety<br />
of customers, reaching from retail to telecommunications<br />
to value-added resellers (VARs). In Canada,<br />
Onoprijenko heads the company’s fastest-growing<br />
division: Cloud. “As customers transform their<br />
businesses and start to adopt more cloud services,<br />
their dependence on the IT channel for guidance<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
185
INGRAM MICRO<br />
186<br />
“Technology<br />
is extremely<br />
important to us,<br />
and there’s a<br />
lot of pressure<br />
to get it right”<br />
—<br />
Greg Onoprijenko,<br />
Director of Cloud Canada<br />
Ingram Micro<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘INGRAM MICRO CLOUD OVERVIEW’<br />
187<br />
has become increasingly critical to<br />
their success,” he says. “This increase<br />
in demand has resulted in revenue<br />
growth as we develop more solutions<br />
in the portfolio and add a larger staff to<br />
support the demand. We’re fortunate<br />
to be leading an extremely profitable<br />
and fast-growing business.”<br />
The company’s Cloud operations<br />
are divided into three business units.<br />
The first is the Microsoft team, which<br />
primarily focuses on Office 365 and<br />
the associated licensing models. The<br />
second unit addresses Software-as-a-<br />
Service (SaaS), such as cloud security,<br />
backup and recovery, and communications<br />
and collaboration services.<br />
The third unit is the Infrastructure-as-a-<br />
Service (IaaS) team. “The IaaS team is<br />
completely focused on data centre<br />
transformation and public cloud<br />
infrastructure. The solutions we sell<br />
within that portfolio include Microsoft<br />
Azure, Amazon Web Services, and<br />
IBM Cloud,” explains Onoprijenko.<br />
“One of the competitive advantages<br />
we have in the Cloud division is just the<br />
sheer breadth and depth of the team.<br />
We have over 1,500 dedicated cloud<br />
employees globally, with extensive<br />
www.businesschief.com
INGRAM MICRO<br />
188<br />
industry experience. For our customers<br />
and channel partners who need<br />
guidance and advice, we have the<br />
industry’s best team to lean on,”<br />
comments Onoprijenko. As Ingram<br />
Micro transforms its business model,<br />
change management across the<br />
company has its challenges. To<br />
effectively combat these challenges,<br />
Ingram Micro’s Cloud team is continuously<br />
providing education to ensure<br />
that “the entire company is aligned<br />
with the cloud strategy.”<br />
The company’s platform strategy is<br />
another clear differentiator that<br />
separates it from its competitors.<br />
Ingram Micro offers a fully automated<br />
platform that enables cloud services<br />
transactions with centralized dashboards,<br />
reporting and support.<br />
“The platform covers any need that<br />
a partner may have when delivering<br />
cloud services,” he continues.<br />
“As channel partners become mature<br />
and more successful in the cloud, they<br />
recognize that automation is critical to<br />
scale their businesses and that they<br />
need to have their eCommerce platform<br />
JULY <strong>2019</strong>
to transact cloud services. Our global<br />
cloud service offerings make us a<br />
logical option for these companies.”<br />
As customers within the technology<br />
sector shift towards an as-a-service<br />
model, Ingram Micro is adapting its<br />
strategy. “Instead of customers buying<br />
and owning IT products, the evolution<br />
is towards everything-as-a-monthlyfee.<br />
That puts pressure on the IT<br />
channel partners to evolve and change<br />
to meet customer demands. It also<br />
puts pressure on IT distributors to<br />
change how they deliver solutions to<br />
the market. Finally, the onus is on the 189<br />
EXECUTIVE PROFILE<br />
Greg Onoprijenko,<br />
Director, Cloud Canada<br />
Greg Onoprijenko is Director of Cloud<br />
for Ingram Micro Canada. He provides<br />
overall strategy, guidance and leadership<br />
for Ingram Micro’s cloud services business<br />
unit. He assumes all responsibilities of<br />
the cloud business in the Canadian market<br />
which includes sales, marketing,<br />
vendor management, and new<br />
strategic alliances.<br />
www.businesschief.com
Choose<br />
growth.<br />
Employee expectations are rising.<br />
60% of employees expect their employers to<br />
provide the latest technology. See how you<br />
can use modern tools to attract and retain the<br />
best talent.<br />
vendors, who are ultimately creating<br />
these products and services to evolve,”<br />
reveals Onoprijenko. To embrace the<br />
change in demand for both hardware<br />
and software products, Ingram Micro<br />
is increasingly introducing new service<br />
options, with Onoprijenko claiming they<br />
are leading the industry.<br />
Onoprijenko cites traditional<br />
software licensing as an example, with<br />
customers purchasing the licenses<br />
and associated maintenance to own<br />
and manage. With the current evolution<br />
underway, firms are moving away from<br />
owning these licenses, instead opting<br />
JULY <strong>2019</strong>
for a pay-as-you-go alternative to<br />
access the software, which typically<br />
resides in the cloud. “It’s an evolution.<br />
A lot of the channel partners recognize<br />
this and are proactively transforming<br />
their companies. While some companies<br />
recognize the need to change,<br />
and that they need help with it, others<br />
are unresponsive to change and risk<br />
getting left behind.” With the experience<br />
of the Cloud team, Ingram Micro<br />
can offer its partners guidance and<br />
knowledge through seminars, educational<br />
opportunities and one-on-one<br />
“We recently<br />
moved the entire<br />
company to<br />
Microsoft Office<br />
365 instead<br />
of hosting the<br />
solution ourselves”<br />
—<br />
Greg Onoprijenko,<br />
Director of Cloud Canada<br />
Ingram Micro<br />
191<br />
www.businesschief.com
INGRAM MICRO<br />
192<br />
coaching, differentiating the firm from<br />
its competitors. “We can surround our<br />
clients with resources which can guide<br />
them along and motivate them to<br />
change proactively,” he adds.<br />
As well as enabling its customers<br />
to advance their operations, Ingram<br />
Micro is working towards the same<br />
goal of innovating its functions<br />
internally. “We’re changing our business<br />
model and evolving to the cloud.<br />
We previously had large data centres<br />
with IT infrastructure that serviced the<br />
entire company. As an example, we<br />
recently moved the entire company<br />
to Microsoft Office 365 instead of<br />
hosting the solutions ourselves. We<br />
also standardized the entire company<br />
on Microsoft Dynamics CRM, versus<br />
hosting our own.”<br />
With cloud adoption increasing at<br />
such a rapid rate, one of the company’s<br />
biggest challenges is to compete with<br />
other businesses taking advantage of<br />
the advancement. “Everybody understands<br />
the opportunity and is pursuing<br />
it. Ingram Micro envisioned this<br />
opportunity before our competitors<br />
and started delivering cloud services<br />
about 12 years ago. We certainly<br />
JULY <strong>2019</strong>
$50bn<br />
Approximate<br />
revenue<br />
193<br />
1979<br />
Year founded<br />
33,000<br />
Approximate number<br />
of employees<br />
www.businesschief.com
INGRAM MICRO<br />
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CLICK TO WATCH: ‘RENEE BERGERON, INGRAM MICRO CLOUD,<br />
CLOUD SUMMIT X KEYNOTE’<br />
195<br />
“Everybody<br />
understands<br />
the opportunity<br />
and is pursuing it.<br />
Ingram Micro saw<br />
this opportunity<br />
before our<br />
competitors”<br />
—<br />
Greg Onoprijenko,<br />
Director of Cloud Canada<br />
Ingram Micro<br />
invested early,” Onoprijenko says.<br />
Within such a competitive industry,<br />
the company has the advantage of<br />
its hardworking team with its breadth<br />
of knowledge, as well as its years of<br />
experience in the sector. As the firm<br />
continues to grow, the cloud will be<br />
a foundational part of its strategy.<br />
www.businesschief.com
LOGO HERE<br />
196<br />
WRITTEN BY<br />
SEAN GALEA-PACE<br />
PRODUCED BY<br />
CRAIG KILLINGBACK<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
197
UNIVERSITY OF TORONTO MISSISSAUGA<br />
AHMED AZHARI, DIRECTOR OF UTILITIES,<br />
SUSTAINABILITY & GROUNDS AT UNIVERSITY<br />
OF TORONTO MISSISSAUGA, DISCUSSES HOW<br />
HIS ORGANIZATION IS DEVELOPING TOWARD<br />
A MORE SUSTAINABLE FUTURE<br />
198<br />
P<br />
roviding one of the largest further education<br />
facilities in Canada, the University<br />
of Toronto Mississauga (UTM) holds the<br />
reputation of a leading organization in the country.<br />
The university is accelerating its prestige with<br />
significant growth over the past few years through<br />
the development of new facilities, and is home to<br />
over 25 buildings with more on the horizon. With<br />
sustainability recognized as a top priority at UTM,<br />
from both an environmental perspective and as a<br />
boost to its reputation as a sustainable organization,<br />
the university has formed key plans to meet the<br />
challenge head-on.<br />
Tasked with enabling the university to achieve<br />
a more sustainable future, Ahmed Azhari, Director of<br />
Utilities, Sustainability & Grounds at UTM, believes<br />
student engagement is key to realizing this<br />
important ambition. “Staff and student engagement<br />
is incredibly important because sustainability isn’t<br />
just one person’s job,” he affirms. “It’s our job<br />
collectively as the UTM community to ensure<br />
everything we do reduces the impact on the<br />
environment and help mitigate climate change.<br />
JULY <strong>2019</strong>
199<br />
© Jiaying Song<br />
www.businesschief.com
UNIVERSITY OF TORONTO MISSISSAUGA<br />
200<br />
“STAFF AND STUDENT<br />
ENGAGEMENT<br />
IS INCREDIBLY<br />
IMPORTANT<br />
BECAUSE<br />
SUSTAINABILITY<br />
ISN’T JUST ONE<br />
PERSON’S JOB”<br />
—<br />
Ahmed Azhari,<br />
Director of Utilities, Sustainability<br />
& Grounds at UTM<br />
We’ve conducted lots of student<br />
engagement activities to educate both<br />
students and faculty members, ensuring<br />
they are aware as to how they can use<br />
the buildings in a more efficient manner.”<br />
The university has installed energy<br />
dashboards into a number of the key<br />
buildings on campus to equip students<br />
and staff members with the knowledge<br />
to understand how much energy the<br />
building is using on a real-time basis.<br />
To accelerate this project, the university<br />
has established a ‘Grow Smart,<br />
Grow Green’ strategy which focuses<br />
on key topic areas such as green<br />
JULY <strong>2019</strong>
uildings, natural areas, transportation,<br />
water management, energy management,<br />
waste and recycling. “As part<br />
of this scheme, we’ve introduced a ban<br />
on bottled water,” explains Azhari.<br />
“Bottled water isn’t available to buy<br />
anywhere on campus and we’ve<br />
replaced the single-use plastic with<br />
water fountains that allow those on<br />
campus to refill their bottles instead of<br />
purchasing new ones. This is key to our<br />
sustainability strategy moving forward.”<br />
Operating with a clear goal in mind,<br />
the university is engaging with students<br />
to develop waste and recycling plans.<br />
“We’re trying to create an educational<br />
campaign in the community to<br />
encourage our students and staff<br />
to recycle things properly,” remarks<br />
Azhari. “It’s a big engagement project<br />
that will help standardize all the waste<br />
bins we have on campus, as well as<br />
producing new recycling schemes and<br />
educating the faculty and community<br />
on how to dispose of waste properly.”<br />
With many buildings across campus<br />
recognized with a silver standard<br />
minimum in Leadership in Energy and<br />
Environmental Design (LEED), the<br />
university’s buildings – which are made<br />
201<br />
CLICK TO WATCH: ‘SUSTAINABLEUOFT’<br />
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UNIVERSITY OF TORONTO MISSISSAUGA<br />
202<br />
from recycled and regional materials<br />
– include features such as green<br />
cleaning programs, low-flow fixtures,<br />
energy efficient mechanical and<br />
electrical systems, low-emitting<br />
materials and green roofs. “The<br />
construction policy that we have in<br />
place is that any new buildings must<br />
meet our requirements of being a<br />
minimum of LEED silver,” says Azhari.<br />
“However, we can’t stop there; we’re<br />
always looking to achieve more.” UTM’s<br />
HMALC (Hazel McCallion Academic<br />
Learning Centre), instructional building,<br />
Deerfield Hall and innovation complex<br />
all meet this requirement, as well as the<br />
“IT’S OUR JOB<br />
COLLECTIVELY AS THE<br />
UTM COMMUNITY TO<br />
ENSURE EVERYTHING<br />
WE DO REDUCES<br />
THE IMPACT ON<br />
THE ENVIRONMENT<br />
AND HELP MITIGATE<br />
CLIMATE CHANGE”<br />
—<br />
Ahmed Azhari,<br />
Director of Utilities, Sustainability<br />
& Grounds at UTM<br />
JULY <strong>2019</strong>
minimum target of the upcoming<br />
North Building. In addition, the Health<br />
Sciences Complex and David building<br />
third floor renovation have both<br />
achieved LEED gold status, while the<br />
new science building is also anticipated<br />
to achieve this goal. “I have heavily<br />
participated in the design of the New<br />
Science building at UTM, which is set<br />
to house of the majority of the wet and<br />
dry lab research that takes place on<br />
campus,” notes Azhari. “It’s targeted<br />
to be a minimum LEED silver that will<br />
incorporate two major renewable<br />
energy systems; geothermal system<br />
for building heating and cooling as well<br />
as a solar photovoltaic system to offset<br />
some of the building electrical requirements.<br />
We will ensure that it utilizes other<br />
sustainability measures that qualify it to<br />
be certified above the minimum target<br />
under the LEED program.”<br />
EXECUTIVE PROFILE<br />
Ahmed Azhari<br />
Ahmed Azhari has a diverse range of primary skills such as<br />
Sustainable Design, Facilities Management and Energy<br />
Management. Professionally, Ahmed manages the design of<br />
progressive disciplinary building systems; oversees the<br />
installation, operation and monitoring for the safe, comfortable,<br />
and environmentally friendly operations of modern buildings.<br />
He has delivered designs that play a significant role on the<br />
sustainability and energy demand of buildings while<br />
utilizing renewable energy, sustainability, low carbon<br />
technologies, LEED strategies, and energy management<br />
techniques. Ahmed is currently registered with<br />
Professional Engineers Ontario as a Professional Engineer<br />
(P.Eng.), with Canada Green Building Council as<br />
a Leadership in Energy and Environmental Design<br />
Accredited Professional (LEED AP), and with<br />
Association of Energy Engineers as Certified<br />
Energy Manager (CEM).<br />
203<br />
www.businesschief.com
UNIVERSITY OF TORONTO MISSISSAUGA<br />
204<br />
JULY <strong>2019</strong>
205<br />
—<br />
Ahmed Azhari,<br />
Director of Utilities, Sustainability<br />
& Grounds at UTM<br />
www.businesschief.com
collaborative partner<br />
for a sustainable future.<br />
EXP has the right blend of expertise and experience to<br />
understand, innovate, partner, and deliver.<br />
let’s explore the possibilities.<br />
exp com
207<br />
The university formed a key partnership<br />
with EXP, through a competitive<br />
public procurement process, to help<br />
with the design retrofit for two projects<br />
on campus; the Recreational Athletics<br />
and Wellness Centre (RAWC) and the<br />
Kaneff Centre. “EXP designed the<br />
system and helped us put the tender<br />
out for public pricing. They currently<br />
help us on the construction administration<br />
and the project management<br />
to help successfully deliver,” he says.<br />
“The RAWC is an athletics building,<br />
it has a swimming pool and a sauna,<br />
with significant heating demand<br />
“MY VISION FROM<br />
A SUSTAINABILITY<br />
PERSPECTIVE IS<br />
TO DESIGN AND<br />
ENABLE ALL FUTURE<br />
BUILDINGS TO<br />
BECOME CARBON<br />
NEUTRAL”<br />
—<br />
Ahmed Azhari,<br />
Director of Utilities, Sustainability<br />
& Grounds at UTM<br />
www.businesschief.com
UNIVERSITY OF TORONTO MISSISSAUGA<br />
208<br />
JULY <strong>2019</strong>
equirements. We realized a solar hot<br />
water system would be an ideal installation<br />
in a building like this to help offset<br />
some of the building heating demand<br />
and fulfil our commitments to utilizing<br />
renewable energy sources in efforts<br />
to reduce greenhouse gas emissions.”<br />
Looking to the future, Azhari has a<br />
clear vision of how UTM can continue<br />
the promising start it has made. “We<br />
haven’t finished – we’re always looking<br />
to grow. We’ve signed up for the<br />
University Climate Change Coalition<br />
Challenge (UC3 Challenge), which aims<br />
to reduce our greenhouse gas emissions<br />
by 37% by 2030, against a 1990<br />
baseline. My vision from a sustainability<br />
perspective is to design and enable all<br />
future buildings to become Carbon<br />
Neutral in order to help remediate our<br />
environmental impact and help mitigate<br />
climate change.”<br />
209<br />
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210<br />
JULY <strong>2019</strong>
How technology and<br />
people have inspired<br />
sustainability and<br />
climate action<br />
in Ontario<br />
211<br />
WRITTEN BY<br />
MARCUS LAWRENCE<br />
PRODUCED BY<br />
CRAIG KILLINGBACK<br />
www.businesschief.com
TOWN OF CALEDON<br />
Katelyn McFadyen, Manager<br />
of Energy and Environment for<br />
the Town of Caledon, discusses<br />
the push for sustainability<br />
through the use of technology<br />
and empowering the people<br />
behind climate action<br />
212<br />
C<br />
aledon, located in southern Ontario and<br />
an hour’s drive from Toronto, is a shining<br />
example of the positive impact that can<br />
be generated through sustainability initiatives at<br />
the municipal level. Katelyn McFadyen, Manager<br />
of Energy and Environment at the Town of Caledon,<br />
and Cristina Guido, the Energy and Environment<br />
Specialist in McFadyen’s team, are enthusiastic and<br />
passionate about the impactful initiatives being<br />
enacted across the municipality. “I think it’s safe to<br />
say that, no matter the size of the municipality, you’re<br />
still able to be creative when addressing climate<br />
change,” says McFadyen. “The Energy and Environment<br />
division is responsible for providing corporate<br />
and community stakeholders with guidance and<br />
tools for addressing climate change, energy<br />
management and sustainable operations practices,”<br />
says McFadyen. “We do a lot of research and facilitation<br />
to build corporate and community capacity,<br />
so that projects that address climate change can<br />
be implemented collaboratively and effectively.”<br />
JULY <strong>2019</strong>
213<br />
“Energy<br />
consumption<br />
in buildings is<br />
our number one<br />
contributor to<br />
corporate GHG<br />
emissions”<br />
—<br />
Katelyn McFadyen,<br />
Manager of Energy and Environment<br />
www.businesschief.com
TOWN OF CALEDON<br />
214<br />
“We were<br />
recognized<br />
by the Mayor’s<br />
Megawatt<br />
Challenge for<br />
a 10% reduction<br />
in energy<br />
usage in our<br />
Town Hall”<br />
—<br />
Cristina Guido,<br />
Energy and Environment Specialist<br />
Recieving the award from Mayor Allan Thompson<br />
The overarching aims of the Town’s<br />
corporate environmental initiatives can<br />
be boiled down to reducing greenhouse<br />
gas (GHG) emissions and<br />
maximizing the efficiency of buildings<br />
and transport networks. “Energy<br />
consumption in buildings is our number<br />
one contributor to corporate GHG<br />
emissions,” says McFadyen. Guido is<br />
currently working on updating the<br />
Town’s corporate five-year energy<br />
management plan, which is set to be<br />
released in <strong>2019</strong>. “It’s a requirement of<br />
the provincial government, but we took<br />
this as an opportunity to go beyond<br />
provincial regulations and expand this<br />
to broader corporate GHG emissions,”<br />
says Guido. “We’re assessing strategies<br />
to enhance operations and<br />
maintenance, and get our buildings to<br />
be as efficient as possible.” Through a<br />
collaborative partnership with the<br />
Town’s Corporate Energy Team, a<br />
group made up of the Town’s building<br />
operations specialists, Caledon is<br />
working to minimize emissions<br />
stemming from its buildings. This is<br />
being done through enhanced<br />
operational efficiency and conservation-focused<br />
retrofits. “We’re very<br />
fortunate to have the level of engage-<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘CAPTURE CALEDON’<br />
215<br />
ment from our Building Operations<br />
Team that we do,” says McFadyen.<br />
“They’re an incredible group of people<br />
who’ve totally embraced our corporate<br />
strategy and are actively engaged in<br />
– and excited about – efforts to<br />
leverage opportunities and retrofits to<br />
reduce energy consumption.”<br />
At the outset of her time with the<br />
Town of Caledon, Guido was pivotal in<br />
the development of the Town’s building<br />
benchmarking initiative that McFadyen’s<br />
team has since used as a powerful<br />
indicator of building efficiency. The<br />
project is driven by RETScreen Expert,<br />
a software developed by Natural<br />
Resources Canada, a department of<br />
the Canadian Government. It streamlines<br />
the Town’s building benchmarking<br />
initiative as well as visualizing progress<br />
on Caledon’s goals. “RETScreen<br />
allows us to normalize for variables that<br />
drive energy consumption which staff<br />
cannot control, such as weather. This<br />
allows us to isolate factors such as<br />
heating degree days, cooling degree<br />
days, and the number of days arena ice<br />
is operational in facilities. For some<br />
facilities, we also look at recreation<br />
building booking hours and how this<br />
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TOWN OF CALEDON<br />
216<br />
JULY <strong>2019</strong>
influences their energy performance,”<br />
says Guido. “We also use RETScreen<br />
to monitor progress towards our<br />
reduction targets. For example, our<br />
current corporate energy management<br />
plan has a target of a 9% reduction in<br />
building energy consumption, and we<br />
use the software to monitor how close<br />
we are to reaching that target,”<br />
explains Guido. Caledon is well on its<br />
way to meeting its current goals, and<br />
McFadyen enthuses that doing so is<br />
just the beginning.<br />
Another major area of focus is<br />
transport, with McFadyen’s team<br />
working not only to reduce the GHG<br />
impact of Caledon’s fleet but also to lay<br />
the groundwork for future vehicular<br />
solutions. “One of our main focuses<br />
with Town-owned vehicles will be<br />
developing a corporate green fleet<br />
strategy and doing some modelling to<br />
see what types of lower-emission fuels<br />
are less harmful to the environment,”<br />
says Guido. Progress has already been<br />
made in this area, with McFadyen<br />
EXECUTIVE PROFILE<br />
217<br />
Katelyn McFadyen<br />
Katelyn McFadyen is Manager of the Energy and Environment<br />
Division at the Town of Caledon. Having completed her Master’s<br />
degree in Environmental Sustainability at the University of<br />
Edinburgh, McFadyen has worked at the Town for almost six<br />
years as a key driver of the Town’s environmental portfolio<br />
successes. In her previous role as Energy and Environment<br />
Officer, McFadyen launched the Corporate Energy Team<br />
and established the Town’s Corporate Energy Revolving<br />
Fund, a self-sustaining fund that financially enables<br />
energy retrofits in Town facilities. McFadyen is<br />
currently updating the Town’s community climate<br />
change mitigation and adaptation action plan, driving<br />
the implementation of the Peel Climate Change Strategy,<br />
and leading the Energy and Environment Division.<br />
www.businesschief.com
TOWN OF CALEDON<br />
$100mn+<br />
Annual budget<br />
for <strong>2019</strong><br />
1974<br />
Year<br />
founded<br />
350+<br />
Approximate number<br />
of employees<br />
218<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
219
Savings<br />
by Design<br />
Program<br />
The Town of Caledon Southfields Community Centre Conceptual Rendering<br />
The Savings by Design<br />
program helps builders<br />
improve energy and<br />
environmental performance<br />
in new construction projects.<br />
When a building model<br />
exceeds the Ontario Building<br />
Code’s energy performance<br />
requirements by 15%<br />
(combined gas and electrical<br />
savings), it becomes eligible<br />
for incentive funding.<br />
TOWN FACILITY ADOPTS ENERGY EFFICIENT TECHNOLOGIES<br />
EXPLORING ALTERNATIVE<br />
OPPORTUNITIES<br />
TO SAVE ENERGY<br />
The Savings by Design program<br />
offers many options to help<br />
customers build resiliency into their<br />
projects, lowering long-term<br />
operational and ongoing energy<br />
costs. A Visioning Session helps<br />
define project requirements and<br />
sustainability priorities by exploring<br />
site, regulatory, and market<br />
conditions. Issues are then identified<br />
and prioritized in the Integrated<br />
Design Process Session (IDP).<br />
At the full-day IDP workshop, a team<br />
of design experts in sustainable<br />
building, lighting, HVAC, storm water<br />
management, and planning explore<br />
possible design improvements to the<br />
building. The team works with the<br />
SBD experts to explore alternative<br />
opportunities to save energy and<br />
meet the goals of the program.<br />
Real-time modelling allows the team<br />
to explore energy savings measures<br />
with immediate feedback on the<br />
energy impacts. After the workshop,<br />
SBC delivers a final energy model<br />
based on the ECMs selected as well<br />
as a report summarizing the<br />
discussions of the day.<br />
The Town of Caledon has a Corporate Green Building Standard that requires<br />
LEED Silver certification for all new facilities over 10,000 square feet. When<br />
planning its new recreation facility at Kennedy Road and Dougall Avenue, the<br />
Town of Caledon turned to Enbridge Gas and Savings by Design.<br />
“The Savings by Design program presented a strong alignment with our<br />
Council-approved building standard,” says Katelyn McFadyen, Manager,<br />
Energy and Environment, Finance and Infrastructure Services.<br />
“It provided an integrated learning opportunity between Town staff and the<br />
project consulting team. All the parties came together to share information<br />
about facility construction best practices and energy efficient technologies.”<br />
The 65,000 square foot Southfields Community Centre contains a pool, fitness<br />
area, library, OPP station, youth and seniors space, and a community hub<br />
containing a Montessori School, Parent Child Centre and other community<br />
partners. A groundbreaking ceremony took place in the fall of 2017.<br />
A significant outcome of the Savings by Design program, according to the<br />
Town of Caledon, was the integrated learning opportunity about construction<br />
best practices, technologies and approaches available to reduce energy<br />
consumption, plus methods to improve the management of stormwater.<br />
The SBD program also had a direct impact on projects beyond Southfields<br />
Community Centre. “We invited staff outside of the project to expand their<br />
knowledge capacity and understand the justification for the construction of<br />
high performing facilities.”<br />
INTEGRATED DESIGN WORKSHOP<br />
Sponsored by Enbridge and facilitated by Sustainable Buildings Canada (SBC),<br />
Savings by Design provides incentive funding for projects to engage in an<br />
integrated design workshop process with real-time energy modelling.<br />
Enbridge offered the Town of Caledon free access to a team of multidisciplinary<br />
experts to explore high performance building energy targets as well as other<br />
environmental objectives including wellness, low impact design, water<br />
management, and more.<br />
“Although some of the stormwater management technologies and approaches<br />
presented during the SBD workshop were not integrated into the Southfields<br />
Community Centre, these practices were integrated into other facility<br />
construction projects in Caledon,” adds McFadyen.<br />
For more information, visit savingsbydesign.ca
“We were recognized<br />
by the Mayor’s<br />
Megawatt Challenge<br />
for a 10% reduction<br />
in energy usage<br />
in our Town Hall”<br />
—<br />
Cristina Guido,<br />
Energy and Environment Specialist<br />
noting that the Town has developed<br />
a strong foundation for future electric<br />
vehicle (EV) infrastructure. “For a<br />
municipality of 70,000, we’re really<br />
proud that we have 13 publicly available<br />
EV charging stations, and six plug-in<br />
hybrid vehicles in our fleet,” she adds,<br />
noting that these successes are of<br />
particular importance to Caledon with<br />
its geographically large landscape.<br />
Through the Peel Climate Change<br />
Partnership, which involves the<br />
municipal governments of the Region<br />
of Peel, Town of Caledon, Cities of<br />
Mississauga and Brampton, Credit<br />
221<br />
Cristina Guido<br />
EXECUTIVE PROFILE<br />
Cristina Guido is the Energy and Environment Specialist with<br />
the Town of Caledon. Guido has her Bachelor’s degree in<br />
Environmental Studies and Master’s degree in Environmental<br />
Studies from York University in Toronto, and has recently<br />
received the <strong>Business</strong> Energy Professional certification from<br />
the Association of Energy Engineers. Guido has been with<br />
the Town since 2015, beginning in the role of a student and<br />
progressing to her current full-time role. She is driven<br />
by her passion for climate change mitigation and is inspired<br />
to make a change in the community that she grew up in.<br />
Guido continues to lead the Town’s corporate energy<br />
and environmental initiatives.<br />
www.businesschief.com
TOWN OF CALEDON<br />
222<br />
Valley Conservation Authority, and<br />
the Toronto and Region Conservation<br />
Authority, Caledon is helping to develop<br />
a new regional strategy to accelerate<br />
the adoption of low-emission and<br />
zero-emission vehicles by residents<br />
and businesses in Peel Region. Further<br />
actions earmarked for improvement in<br />
this area include a ramp-up of vehicle<br />
maintenance to maximize efficiency,<br />
as well as optimizing fleet route<br />
selection. “We’ve installed a GPS-based<br />
system into every vehicle in our fleet<br />
which could, for example, optimize<br />
routes for snow removal in the winter,”<br />
says McFadyen.<br />
Automation-based technologies are<br />
also playing a part in the Town’s<br />
sustainability drive, such as the deployment<br />
of smart thermostats through<br />
many of its buildings and an algorithmic<br />
tool that collates utility bill data in the<br />
back end of Caledon’s energy management<br />
software. The benefits of such<br />
upgrades are far reaching: by being able<br />
to remotely control a building’s internal<br />
climate, McFadyen notes that operations<br />
teams no longer have to travel<br />
between locations to make adjustments,<br />
thereby reducing transport-based<br />
emissions. The algorithmic solution<br />
JULY <strong>2019</strong>
mitigates the risk of additional costs or<br />
disruptions accruing through mishandled<br />
or misinterpreted data, provides<br />
alert reports with consumption anomalies<br />
and enhances administrative<br />
elements of processing utility bills.<br />
The efficacy of these endeavors has<br />
been reflected in the awards that<br />
McFadyen’s team has received.<br />
“We were recognized by the Mayor’s<br />
Megawatt Challenge for a 10% reduction<br />
in energy usage in our Town Hall,<br />
and received similar recognitions for<br />
two of our recreation complexes,” says<br />
Guido, highlighting a handful of the<br />
many awards received from local<br />
associations and climate action drivers<br />
– but for the team, the satisfaction lies in<br />
the results themselves. “Something we<br />
really value is that once you implement<br />
a project you can see its results,” says<br />
Guido. “We can see these retrofits and<br />
then, on the data side, we can measure<br />
and see that they are saving energy<br />
and reducing emissions. It’s amazing to<br />
see the impact of our work and to know<br />
that we are making a difference.”<br />
223<br />
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224<br />
Service<br />
New<br />
Brunswick:<br />
procurement<br />
as a business<br />
enabler<br />
WRITTEN<br />
BY<br />
LAURA MULLAN<br />
PRODUCED BY<br />
ARRON RAMPLING<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
225
SERVICE NEW BRUNSWICK<br />
With a winning procurement<br />
strategy underway, Renée<br />
Laforest, Vice President of<br />
the Finance and Strategic<br />
Procurement Division at SNB,<br />
highlights how the crown<br />
corporation is having a lasting<br />
impact on New Brunswick<br />
226<br />
W<br />
hether registering land and property<br />
or receiving healthcare, the citizens of<br />
New Brunswick have definitely crossed<br />
paths with Service New Brunswick (SNB), a crown<br />
corporation that provides almost all direct public<br />
services on behalf of the government. SNB’s<br />
regular clientele includes provincial and federal<br />
government agencies, municipalities, lawyers,<br />
surveyors, appraisers, realtors, financial institutions,<br />
utilities, engineers, consultants and more – this<br />
means the organization’s procurement team<br />
have a massive, yet vital, task on their hands.<br />
Renée Laforest, Vice President of the Finance<br />
and Strategic Procurement division, highlights<br />
how SNB’s procurement function isn’t just about<br />
improving cost efficiency: it’s also about making<br />
meaningful change. “Service New Brunswick does<br />
strategic procurement for most of the government<br />
entities in the entire province including the health<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
227
SERVICE NEW BRUNSWICK<br />
228<br />
“We’re starting to have<br />
more conversations<br />
about value-based<br />
procurement, whereby<br />
the results are based<br />
on outcomes”<br />
—<br />
Renée Laforest,<br />
Vice President, Finance and<br />
Strategic Procurement Division,<br />
Service New Brunswick<br />
sector,” she explains. “Five or six years<br />
ago there was an emphasis on cost,<br />
and the strategic procurement division<br />
was asked to find substantial savings<br />
for the government. Therefore, not<br />
unlike a lot of procurement teams,<br />
we shifted towards a category<br />
management strategy.” In essence,<br />
this involves clustering similar items<br />
that the company wants to buy under<br />
a single cost-effective deal. “We have<br />
achieved a significant amount of<br />
savings through this new strategy,”<br />
Laforest enthuses.<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘RECENT ECONOMIC SUCCESSES’<br />
229<br />
However, in the most recent chapters<br />
of the firm’s procurement journey,<br />
it has shifted towards value-based<br />
procurement. This can perhaps be<br />
best seen within the healthcare<br />
division, notes Laforest: “We’re starting<br />
to have more conversations about<br />
value-based procurement, whereby<br />
the results are based on outcomes.<br />
For example, when we purchase<br />
insulin pumps for diabetes clients,<br />
we’ll carefully look at the needs of<br />
our clients and ensure we meet their<br />
demands rather than automatically<br />
opting for the cheapest pump.” SNB<br />
has implemented a range of innovative<br />
procurement strategies but it seems,<br />
in a lot of cases, you can’t underestimate<br />
the power of conversation and<br />
understanding the product or service.<br />
“We really consider our clients’ needs<br />
and requirements when procuring<br />
goods and services for them,” Laforest<br />
notes. “It’s important that we have these<br />
in-depth conversations, particularly<br />
when it comes to services. If you’re<br />
buying a service you may have more<br />
complex needs and requirements,<br />
so this dialogue is critical.”<br />
Procurement has proven to be at the<br />
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SERVICE NEW BRUNSWICK<br />
230<br />
bedrock of SNB’s operations, ensuring<br />
that the organization can deliver the<br />
vital government services needed<br />
to keep the region ticking along.<br />
The function has a lasting impact on<br />
the people who provide government<br />
services, as well as an indirect impact<br />
on those who receive them. Yet,<br />
notably, the reverberations of SNB’s<br />
innovative procurement strategy can<br />
be felt by New Brunswick suppliers too.<br />
“We’re trying to support New Brunswick<br />
suppliers to become prosperous<br />
so they can successfully bid to the<br />
government,” Laforest explains. “We’re<br />
“We are trying to<br />
support New Brunswick<br />
suppliers to become<br />
successful so that they<br />
can successfully bid<br />
to the government”<br />
—<br />
Renée Laforest,<br />
Vice President, Finance and<br />
Strategic Procurement Division,<br />
Service New Brunswick<br />
JULY <strong>2019</strong>
trying to explain to them when we can<br />
give preference to a local supplier<br />
versus having an open tender, and why<br />
we need to do that to support our New<br />
Brunswick companies.” On top of this,<br />
SNB has shown a flair for supplier<br />
relationship management (SRM)<br />
through in-depth conversations,<br />
outreach programs and more. One<br />
such company that has worked closely<br />
with SNB is IMP Solutions, who were<br />
successful in winning a number<br />
of technology supply contracts with<br />
the Government of New Brunswick.<br />
“Currently, they hold four separate<br />
multi-year contracts of supply for<br />
technology goods, including data centre<br />
infrastructure and client computing<br />
equipment,” explains Laforest. “All of<br />
these contracts were awarded through<br />
competitive open tenders and support<br />
SNB service delivery to three main parts<br />
of government: core government<br />
departments, education, healthcare.”<br />
EXECUTIVE PROFILE<br />
Renée Laforest<br />
Laforest obtained her Bachelor of <strong>Business</strong> Administration<br />
from the Université de Moncton and is a CPA CGA with 29 years<br />
of experience in the civil service. She began her career as<br />
an internal auditor at the Office of the Comptroller, then<br />
as a treasury officer in accounting services. She then<br />
moved to the Department of Health and held various<br />
roles in financial services, including the Executive Director<br />
role, and also the Assistant Deputy Minister of Health<br />
Corporate Services where she was responsible for financial<br />
services, construction services, health analytics,<br />
procurement, emergency preparedness and business<br />
technology. Laforest joined Service New Brunswick<br />
in June 2017 as Vice President of Strategic<br />
rocurement, and become responsible for<br />
Financial Services in the Fall 2018.<br />
231<br />
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SERVICE NEW BRUNSWICK<br />
232<br />
JULY <strong>2019</strong>
$266mn<br />
Approximate<br />
revenue<br />
1990<br />
Year founded<br />
2,400<br />
Approximate number<br />
of employees<br />
233<br />
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SERVICE NEW BRUNSWICK<br />
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Any business leader will tell you<br />
that the procurement sector has been<br />
a stomping ground for innovation lately<br />
and this hasn’t gone amiss at SNB.<br />
Laforest describes how the organization<br />
is in the midst of implementing<br />
a new enterprise resource planning<br />
(ERP) system. “We are investing in a<br />
new eERP solution for all of government,<br />
so we need to replace the HR<br />
management, financial, and procurement<br />
and supply chain systems,” she<br />
explains. This is further compounded<br />
by the group’s strategic sourcing<br />
platform used for health sector<br />
procurements, Bonfire. “Vendors use<br />
“I want to really<br />
add value for our<br />
clients so that they<br />
don’t see procurement<br />
as a roadblock but<br />
rather see it as a valueadding<br />
function”<br />
—<br />
Renée Laforest,<br />
Vice President, Finance and<br />
Strategic Procurement Division,<br />
Service New Brunswick<br />
it to submit their proposals and we<br />
do all our evaluations within the tool.<br />
It’s all automated and all our stakeholders<br />
have found it beneficial.”<br />
Looking at the wider procurement<br />
landscape, Laforest has seen an uptake<br />
in innovative procurement practices.<br />
This helps to encourage greater collaboration<br />
with vendors and promotes new<br />
ways of doing things. “I think the days of<br />
listing endless requirements for procurement<br />
processes are in the past,” she<br />
proposes. “In some instances, you may<br />
know that the business needs to buy<br />
a blue chair that’s a particular height,<br />
for example, and that’s easy to do.<br />
235<br />
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SERVICE NEW BRUNSWICK<br />
236<br />
JULY <strong>2019</strong>
But when you’re not quite certain<br />
what the market has to offer then it’s<br />
important to have a process where<br />
procurement can be more open. For<br />
instance, you may say ‘I need a system<br />
to help me track health inspections’<br />
and outline your requirements so<br />
vendors could bring forward unique<br />
suggestions. It’s fair and transparent<br />
and I think it brings about more<br />
successful outcomes.”<br />
SNB’s procurement success is far<br />
from coincidental. The crown corporation<br />
has put its weight behind a multi-year<br />
procurement integration and it is<br />
already reaping the benefits for both<br />
the government and its citizens. In the<br />
upcoming years, Laforest asserts that<br />
SNB will continue to spearhead leading<br />
procurement practices so that<br />
stakeholders can see the function is<br />
not a hindrance but rather, an enabler.<br />
“I want to really add value for our clients<br />
so that they don’t see procurement<br />
as a roadblock but rather see it as<br />
a value-adding function,” she affirms.<br />
237<br />
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238<br />
JULY <strong>2019</strong>
LEVERAGING<br />
DIGITAL<br />
TRANSFORMATION<br />
IN THE EVOLVING<br />
MINING SECTOR<br />
239<br />
WRITTEN BY<br />
SEAN GALEA-PACE<br />
PRODUCED BY<br />
RICHARD DEANE<br />
www.businesschief.com
ANDRITZ<br />
Arthur Gooch, Director of<br />
Innovation, and Sohail Nazari,<br />
<strong>Business</strong> Development<br />
Manager of ANDRITZ, discuss<br />
the importance of innovation<br />
amidst a digital transformation<br />
in the mining industry<br />
240<br />
W<br />
ith a desire to establish a lead in the<br />
mining sector through innovation amidst<br />
a worldwide digital transformation,<br />
ANDRITZ, which provides industry-specific<br />
products and solutions for sectors including<br />
mining, has a history of setting the bar high.<br />
With the task of embracing the right technology<br />
to drive operations forward vital to growth in all<br />
fields, the mining sector is often considered slower<br />
to adopt new software. However, ANDRITZ remains<br />
determined to enable mining operations all over the<br />
world to bridge the gap between concept and<br />
production, facilitate operational readiness and<br />
stay ahead of the curve. The firm has made<br />
a significant impact in the mining space in recent<br />
years, winning the prestigious #DisruptMining <strong>2019</strong><br />
innovation competition through its disruptive<br />
Digital Twin technology capable of training artificial<br />
intelligence (AI). “It was a very exciting experience<br />
and a little bit surreal to win the competition.<br />
JULY <strong>2019</strong>
241<br />
1852<br />
Year founded<br />
10,000+<br />
Approximate number<br />
of employees<br />
www.businesschief.com
ANDRITZ<br />
“ONCE WE BECAME A FINALIST,<br />
IT’S A SHARK TANK STYLE<br />
COMPETITION AND THE<br />
FINAL THREE GO ON STAGE”<br />
—<br />
Sohail Nazari,<br />
<strong>Business</strong> Development Manager, ANDRITZ<br />
242<br />
We couldn’t quite believe it,” says<br />
Arthur Gooch, Director of Innovation<br />
at ANDRITZ. “There’s a fair amount<br />
of pressure associated with the event<br />
so it all happened in a bit of a blur.”<br />
The competition, hosted by gold mining<br />
giants Goldcorp and now in its third<br />
year, had approximately 90 submissions<br />
from mining firms to showcase<br />
the technologies they have implemented<br />
to drive innovation in the sector.<br />
“It was amazing when we were on the<br />
stage,” adds Sohail Nazari, <strong>Business</strong><br />
Development Manager of ANDRITZ.<br />
“It’s vital that you spend a lot of time<br />
JULY <strong>2019</strong>
CLICK TO WATCH: ‘ANDRITZ CORPORATE VIDEO’<br />
243<br />
ensuring that everything on your<br />
application is correct.”<br />
The competition is whittled down<br />
until three finalists remain. “Once we<br />
became a finalist, it’s a Shark Tank<br />
style competition and the final three go<br />
on stage,” explains Nazari. “They pitch<br />
their ideas to the judges with 500<br />
people watching in the audience. It’s<br />
fair to say it’s a high-pressured event,<br />
and the stakes were really high, but<br />
after we were announced as the<br />
winner, we all felt a massive relief and<br />
were incredibly satisfied.”<br />
Having impressed the judges with its<br />
dynamic simulator, IDEAS, the tool is<br />
now enabling operations across the<br />
sector to reduce risk and experience<br />
considerable cost savings. The<br />
software is considered the leading<br />
dynamic simulator for oil sands<br />
operations in the north of Canada<br />
and for hard rock mining operations<br />
worldwide. Gooch explains how<br />
his company is utilising Digital Twin<br />
software. “The first physical model is<br />
like a software wrapper for all of the<br />
engineering equations that we know<br />
define each piece of equipment,” he<br />
says. “For example, if we have a pipe,<br />
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ANDRITZ<br />
244<br />
JULY <strong>2019</strong>
we know that there are correlations<br />
between pipe geometry, surface<br />
roughness, the pressure across the<br />
pipe as well as the pipe’s flow rate.<br />
Those equations, alongside those for<br />
every other piece of equipment, get<br />
embedded into objects in the model in<br />
a graphical format. This allow us to<br />
connect them together, and it means<br />
that when someone wants to figure out<br />
what is going on in the plant, it’s not a<br />
matter of solving a number of equations.<br />
Instead, it’s setting the conditions<br />
and the operating points – like the<br />
positions of valves and the set points<br />
of controllers – enables the simulation<br />
to replicate the behavior of real<br />
running equipment.”<br />
“Engineers make mistakes like<br />
everyone else in life. However, when<br />
you build the simulation model, you<br />
actually go through all these designs<br />
Dr. Sohail Nazari, BDM<br />
EXECUTIVE PROFILE<br />
Dr. Sohail Nazari has worked in various industries including<br />
automotive and oil and gas. His current focus in ANDRITZ<br />
is to develop the business of applying advanced automation<br />
technologies in mining and mineral processing. He was one<br />
of the instrumental contributors to the ANDRITZ team<br />
that just won first prize in the Goldcorp/Newmont<br />
Disrupt Mining competition with IDEAS Reinforcement<br />
Learning Artificial Intelligence. His areas of expertise<br />
include design and implementation of advanced<br />
process control, intelligent condition monitoring,<br />
Digital Twin and machine learning algorithms. Dr.<br />
Nazari holds a patent on developing a model<br />
predictive control algorithm for power optimization<br />
in data centers. He received his PhD from University<br />
of Alberta, Canada, Department of Electrical<br />
and Computer engineering in 2013.<br />
245<br />
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ANDRITZ<br />
246<br />
JULY <strong>2019</strong>
“THE FIRST PHYSICAL MODEL<br />
IS LIKE A SOFTWARE WRAPPER<br />
FOR ALL OF THE ENGINEERING<br />
EQUATIONS THAT WE<br />
KNOW DEFINE EACH PIECE<br />
OF EQUIPMENT”<br />
—<br />
Arthur Gooch,<br />
Director of Innovation, ANDRITZ<br />
247<br />
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ANDRITZ<br />
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control systems combine all our extensive<br />
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experience in one tailored automation<br />
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ANDRITZ is your full-service provider for<br />
filter presses.<br />
www.andritz.com/metris-addiq
249<br />
Arthur Gooch,<br />
Director of Innovation<br />
EXECUTIVE PROFILE<br />
Arthur is responsible for product development<br />
at ANDRITZ. A mechanical engineer by<br />
training, most of his career has focused on<br />
process automation projects for the mining<br />
and pulp and paper industries. From his<br />
background in control system configuration<br />
and commissioning, he now directs the creation<br />
of artificial intelligence and simulation<br />
technologies for industrial control.<br />
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ANDRITZ<br />
250<br />
JULY <strong>2019</strong>
and it allows you to ensure the design<br />
is going to work. It highlights any<br />
mistakes that are made,” adds Nazari.<br />
“We build the model, validate the design<br />
and ensure that it includes all the<br />
concepts on physics, chemistry,<br />
control systems, metallurgy, or<br />
whatever the plant is for. It’s all there.<br />
Then, we make sure that the design will<br />
work under different scenarios before<br />
we connect the model into the control<br />
system, even before the plant is built.”<br />
Following its success, Gooch affirms<br />
that ANDRITZ continues to take<br />
innovation seriously to avoid complacency<br />
and ensure it differentiates itself<br />
from rivals. “It’s a constant process of<br />
trying to review the technology we<br />
have and look at how we can take new<br />
strides with the things we couldn’t do<br />
yesterday.” Reflecting on his company’s<br />
achievements, Nazari affirms how<br />
teamwork has been key to ANDRITZ’<br />
endeavors. “This success definitely<br />
comes down to teamwork,” says<br />
Nazari. “The things that we are<br />
accomplishing in our division, with<br />
regards to AI at ANDRITZ, are made<br />
possible by the leadership culture in<br />
place to support this and help push for<br />
innovation. We are passionate and we<br />
251<br />
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ANDRITZ<br />
252<br />
“I BELIEVE MANAGERIAL<br />
PRUDENCE AND CAUTION<br />
ARE CERTAINLY KEY TO<br />
ENSURING SUSTAINABILITY”<br />
—<br />
Sohail Nazari,<br />
<strong>Business</strong> Development Manager, ANDRITZ<br />
JULY <strong>2019</strong>
www.businesschief.com<br />
253
ANDRITZ<br />
are one team working together to<br />
innovate – it is so important.”<br />
With sustainability considered a key<br />
pillar at ANDRITZ, Gooch points out<br />
how crucial it is that, despite success,<br />
the company doesn’t take on more<br />
projects than it’s capable of delivering.<br />
“I believe managerial prudence and<br />
caution are certainly key to ensuring<br />
sustainability,” he says. “We’ve<br />
experienced a tremendous flurry<br />
of activity; however, we have had to<br />
be quite deliberate and restrained<br />
regarding how many people we<br />
approach. At some point, we could<br />
potentially run the risk of making<br />
promises that we simply wouldn’t<br />
have the resources to execute in<br />
the agreed timescale.”<br />
Looking to the future, Nazari aspires<br />
for ANDRITZ to become the default<br />
provider of Digital Twin technology in<br />
mineral processing and pulp and paper.<br />
“With our well established process<br />
254<br />
JULY <strong>2019</strong>
simulation technology, ANDRITZ is<br />
becoming a natural frontrunner of this<br />
innovation and is being considered as<br />
a pioneer in the use of real time Digital<br />
Twins for optimizing the process and to<br />
better monitor the conditions from the<br />
process point of view,” explains Nazari.<br />
“The plan for the next few years is to<br />
continue to push innovation through<br />
more showcases, and we’re going<br />
to undergo a large evolution of how<br />
the mineral processing and pulp and<br />
paper is going to work. We’re going<br />
to automate and then optimize as<br />
much as possible. This is what we<br />
at ANDRITZ have at the forefront of<br />
our thoughts.”<br />
255<br />
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