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HHH <strong>USA</strong><br />

EDITION<br />

AUGUST <strong>2019</strong><br />

www.businesschief.com<br />

PROCUREMENT<br />

GOES GLOBAL<br />

Connecting<br />

the future<br />

Holistic digital<br />

transformation<br />

Inside the tech giant’s transition<br />

from PC to a data-centric model<br />

Highest paid CEOs<br />

City Focus LOS<br />

ANGELES<br />

The startups solving<br />

the housing crisis


FOREWORD<br />

W<br />

elcome to the <strong>August</strong> issue<br />

of <strong>Business</strong> <strong>Chief</strong> <strong>USA</strong>.<br />

This month’s cover story features<br />

semiconductor giant Intel, a company<br />

driving an industry-wide digital<br />

transformation and mass migration to<br />

the cloud. Lisa Davis, Vice President of<br />

Digital Transformation and<br />

Scale Solutions, Enterprise<br />

and Government, in the<br />

Data Center Group at Intel,<br />

discusses the company’s<br />

digital transformation from<br />

a PC-driven to a datacentric<br />

organisation.<br />

Our leadership feature<br />

focuses on how changing<br />

consumer expectations and<br />

technological advancements are<br />

changing the face of the manufacturing<br />

industry. Victoria Holt, President and<br />

CEO of digital manufacturer Protolabs,<br />

discusses<br />

the strategies the company is using<br />

Lisa Davis,<br />

Intel<br />

to create and maintain its competitive<br />

advantage. “We’re in a great position<br />

to help other manufacturers take a<br />

look at how they can take advantage<br />

of IT in their manufacturing processes,”<br />

Holt says.<br />

<strong>August</strong>’s City Focus feature takes a<br />

close look at Los Angeles, California,<br />

and some of the startups<br />

working to solve the city’s<br />

real estate pain points.<br />

Elsewhere, <strong>Business</strong><br />

<strong>Chief</strong> investigates the top<br />

10 highest-paid CEOs in<br />

the country.<br />

Make sure to check out<br />

our in-depth, exclusive<br />

features on Armacell, Avaya, the<br />

City of Phoenix, Dentsu Aegis Network<br />

and more.<br />

If you have a story to tell, please email<br />

harry.menear@bizclikmedia.com<br />

Enjoy the issue!<br />

Harry Menear<br />

03<br />

www.businesschief.com


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<strong>USA</strong><br />

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05<br />

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CONTENTS<br />

14<br />

Helping enterprises<br />

realize the power of<br />

digital transformation<br />

32<br />

The changing<br />

face of digital<br />

manufacturing<br />

44<br />

WHY CORPORATES<br />

SHOULD LOOK TO<br />

STARTUPS TO SPUR<br />

THEIR INNOVATION


54<br />

WESPORTUS: HOW<br />

BUSINESS STRATEGY<br />

CAN REVOLUTIONIZE<br />

SPORTS SCOUTING<br />

62<br />

THE CUSTOMER<br />

PERSPECTIVE<br />

HOW CASCADES AND<br />

SAP PRIORITIZE SUPPLY<br />

CHAIN SUSTAINABILITY<br />

70<br />

City Focus<br />

LOS ANGELES<br />

80<br />

TOP 10<br />

Highest paid CEOs<br />

in North America


CONTENTS<br />

114<br />

Steward<br />

Health Care<br />

96<br />

Prysmian<br />

Group<br />

144<br />

Armacell<br />

130<br />

Dentsu Aegis<br />

Network


176<br />

Gateway<br />

First Bank<br />

158<br />

University of Alabama<br />

at Birmingham<br />

204<br />

Riverstreet<br />

Networks<br />

192<br />

AVAYA


CONTENTS<br />

236<br />

Lee Industrial<br />

Contracting<br />

218<br />

City of<br />

Phoenix<br />

250<br />

Simon Fraser<br />

University<br />

268<br />

City of<br />

Brampton


282<br />

Huawei<br />

Technologies<br />

296<br />

KPMG<br />

Canada<br />

310<br />

Polaris<br />

Transportation<br />

Group<br />

324<br />

SSR Mining Inc.<br />

338<br />

Ascendant<br />

Resources


14<br />

Helping enterprises<br />

realize the<br />

power of digital<br />

transformation<br />

WRITTEN BY<br />

HARRY MENEAR<br />

PRODUCED BY<br />

TOM VENTURO<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

15


INTEL CORPORATION<br />

Lisa Davis, Vice President of Digital<br />

Transformation and Scale Solutions,<br />

Enterprise and Government, in the<br />

Data Center Group at Intel, discusses<br />

the company’s digital transformation<br />

from PC to data-centric, and the need<br />

for digital transformations to be both<br />

holistic and customer driven.<br />

16<br />

U<br />

biquitous digital transformation and mass<br />

migration towards the cloud has become<br />

the new reality for the world’s corporations,<br />

governments, and educational institutions. As data<br />

increasingly becomes the fuel powering the global<br />

economy, new methodologies, technologies and<br />

philosophies need to be developed in order to<br />

remain marketable –even the industry’s largest<br />

players are changing their playbooks. Intel, with<br />

over half a century at the forefront of semiconductor<br />

innovation, has been a catalyst for some of the<br />

most significant technology transformations in<br />

modern history, helping reinvent the way we work<br />

and play and thrive in the digital era.<br />

Today, Intel is both helping its diverse ecosystem<br />

of customers and partners harness the power of<br />

the digital transformation, while simultaneously<br />

undergoing its own transformative shift in its<br />

business focus. “It’s a data-centric world, and Intel<br />

as an organization is transitioning to harness the<br />

value that this data provides,” explains Lisa Davis,<br />

AUGUST <strong>2019</strong>


“Intel is moving<br />

from a PC-centric<br />

strategy to a<br />

data-centric one”<br />

—<br />

Lisa Davis,<br />

President of Digital Transformation & Scale<br />

Solutions, Enterprise & Government,<br />

Data Center Group, Intel<br />

17<br />

www.businesschief.com


INTEL CORPORATION<br />

18<br />

“Your company’s<br />

ability to keep pace<br />

with the competition<br />

by leveraging<br />

technology to<br />

provide the services,<br />

capabilities and<br />

experiences your<br />

customers expect<br />

today is paramount”<br />

—<br />

Lisa Davis,<br />

President of Digital Transformation & Scale<br />

Solutions, Enterprise & Government,<br />

Data Center Group, Intel<br />

Vice<br />

President<br />

and General Manager<br />

of Digital Transformation<br />

& Scale Solutions at Intel. “We fully<br />

recognize the importance of being<br />

data-centric, to both our business and<br />

our customers. Leveraging the latest<br />

technologies that help to move, store<br />

and process data allows us to serve<br />

our customers’ needs better.”<br />

Unlocking the power of Big Data is,<br />

Davis recognizes, the primary driver<br />

of Intel and its customers’ digital<br />

transformation. In the modern world,<br />

a successful digital transformation is<br />

the difference between commercial<br />

viability and being consigned to the<br />

Wikipedia footnotes of history. “It is<br />

extremely difficult to compete in today’s<br />

market using the technologies of<br />

yesterday,” says Davis. “Your company’s<br />

ability to keep pace with the competition<br />

by leveraging technology to provide the<br />

services, capabilities and experiences<br />

your customers expect today is<br />

paramount. The companies that don’t<br />

do that aren’t likely to survive.” We sat<br />

down with Davis to discuss her insights,<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘BEHIND THE SCENES WITH LISA DAVIS: A NEW ERA OF IT’<br />

19<br />

gained from a career in technology<br />

spanning more than three decades in<br />

the public and private sectors, into the<br />

need for ongoing digital transformations<br />

that are holistic, guided by corporate<br />

strategy and ultimately driven by<br />

customer demand.<br />

Davis’ journey in the public sector<br />

began as a senior in high school,<br />

spending her summers throughout<br />

college working in a Junior Fellowship<br />

Program at the Lakehurst Naval Air<br />

Engineering Center. “They were trying<br />

to recruit engineers to come to work<br />

for the US Government,” she recalls.<br />

“I spent 26 years, after graduating from<br />

Syracuse, working for the US Department<br />

of Defense. I think I may be one<br />

of the few people who started as a high<br />

school senior, as a GS2 – the very<br />

bottom of the pay scale – and retired<br />

as a Senior Executive Service Member,<br />

which is equivalent to a US Admiral or<br />

General.” Throughout her career with<br />

the DoD, Davis held almost every job<br />

in the IT organization, rising from<br />

a computer programmer, to managing<br />

help desks services, to managing<br />

infrastructure systems, to running<br />

mission control systems, to being<br />

www.businesschief.com


INTEL CORPORATION<br />

20<br />

“Digital transformation<br />

is ultimately about the<br />

experiences we create<br />

for our customers”<br />

—<br />

Lisa Davis,<br />

President of Digital Transformation & Scale<br />

Solutions, Enterprise & Government,<br />

Data Center Group, Intel<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

21


INTEL CORPORATION<br />

22<br />

a Deputy CIO and eventually CIO for<br />

the Counterintelligence Field Activity<br />

in DOD, and then for the US Marshals<br />

Service at the Department of Justice.<br />

In 2012, Davis made the decision<br />

to leave the public sector and move to<br />

academia, where she became CIO of<br />

Georgetown University. “I was intrigued<br />

by the mission, which was to take an<br />

institution created in 1789 and continue<br />

to make it digitally relevant for the<br />

students of today,” Davis recalls.<br />

Guiding digital transformations was<br />

something Davis has specialized in<br />

during her time in government, and<br />

soon brought the concept of seamless<br />

internet connectivity to the Georgetown<br />

campus. She served at the college<br />

for a further three years before making<br />

the move to Intel, taking on her current<br />

role two years later running the Digital<br />

Transformation and Scale Solutions<br />

business, for Enterprise and Government<br />

customers in the Data Center Group<br />

at Intel. “What I love about this role<br />

is that it allows me, having been a<br />

customer for the majority of my career<br />

as a CIO, to now be in a position to<br />

AUGUST <strong>2019</strong>


EXECUTIVE PROFILE<br />

Lisa Davis, Vice President, Data Center<br />

GroupGeneral Manager, Digital Transformation<br />

and Scale Solutions, Enterprise and Government<br />

Lisa Davis is responsible for growing the data center business<br />

and working alongside enterprise and government CIOs to<br />

create IT transformation strategies for their organizations.<br />

Davis joined the Data Center Group from the Intel IT Group<br />

where she led and developed the IT architecture and<br />

integrated technology solutions supporting Intel’s world-class<br />

global supply chain, HR, Finance, and M&A IT. Davis is<br />

a three-time <strong>Chief</strong> Information Officer and has led four<br />

technology transformations over the course of her 30-year<br />

career in technology. Prior to Intel, Davis served as <strong>Chief</strong><br />

Information Officer (CIO) at Georgetown University, and held<br />

a variety of technology leadership roles in her 26-year career<br />

in the Federal Government. As a member of the Senior<br />

Executive Service she was the CIO of the U.S. Marshals Service<br />

in the Department of Justice, as well as CIO of the<br />

Counterintelligence Field Activity in the Department<br />

of Defense. Throughout her 30-year career in technology,<br />

Davis has been a champion for women in technology<br />

and leadership – channeling that passion into leading<br />

professional development initiatives for women.<br />

She has served on the board of Mirantis, as well<br />

as the National Center for Missing and Exploited<br />

Children and a number of non-profit boards.<br />

Lisa holds a bachelor’s degree in computer<br />

engineering from Syracuse University,<br />

and a master’s degree in human resources<br />

management from Golden Gate University,<br />

and is also a Certified Information Systems<br />

Security Professional (CISSP).<br />

23<br />

www.businesschief.com


INTEL CORPORATION<br />

24<br />

influence the product roadmap and<br />

build solutions with Intel’s diverse<br />

ecosystem of partners that help our<br />

enterprise customers on their digital<br />

transformation journey,” enthuses Davis.<br />

Having run the gamut of public and<br />

private sector digital transformation<br />

roles, Davis recognizes that, while<br />

there are differences between the<br />

“different flavors of government”,<br />

academia and the private sector – like<br />

speed of adoption, budget constraints<br />

and organizational structure – every<br />

transformation can be distilled to a few<br />

core truths. Firstly: “Digital transformation<br />

is ultimately about the experiences<br />

we create for our customers, whether<br />

those customers are the men and<br />

women of the US Marshals Service,<br />

or the students, faculty and administration<br />

of Georgetown University.”<br />

Unlocking the power of digital<br />

transformation is, in Davis’ mind,<br />

essential to providing Intel and its<br />

partners’ customers with the experiences<br />

they need. “I manage the global<br />

business for hybrid multi-cloud,<br />

artificial intelligence, enterprise<br />

analytics and cyber security solutions.<br />

We’re largely driven by figuring out how<br />

we help our customers move from<br />

AUGUST <strong>2019</strong>


legacy technology environments to<br />

leveraging cloud technologies. It’s<br />

about right workload in the right place<br />

for the right business requirements,”<br />

says Davis. “Today, our customers are<br />

managing IT environments that are more<br />

complex than ever as they manage<br />

distributed environments that consist<br />

of workloads or applications sitting<br />

on-prem and in private clouds, sitting<br />

out at public clouds, and now on the<br />

intelligent edge and with many different<br />

public cloud providers.”<br />

The complexity and increasingly<br />

interconnected nature of enterprise<br />

software and the businesses that<br />

software supports is at the heart<br />

of Davis’ second core truth: “Digital<br />

transformation strategy needs to be<br />

holistic, because it’s not just about the<br />

technology,” she insists. “One of the<br />

first things I ask our customers is what<br />

their corporate strategy is. Technology<br />

should be leveraged to help drive the<br />

overall corporate or government<br />

strategy of the company. Corporate<br />

strategy and technology need to be<br />

connected. Today, every company<br />

is a technology company.”<br />

In a landscape where technological<br />

innovations move from the theoretical<br />

25<br />

www.businesschief.com


INTEL CORPORATION<br />

$70.8bn<br />

Approximate<br />

revenue<br />

1968<br />

Year founded<br />

26<br />

107,100<br />

Approximate number<br />

of employees<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

27


INTEL CORPORATION<br />

28<br />

to the commonplace at head-spinning<br />

speeds, it is a common mistake for<br />

companies to latch onto every new<br />

development, implement it quickly,<br />

and then try to figure out the business<br />

case later. “Don’t digitally transform for<br />

the sake of technology,” warns Davis.<br />

“I digitally transform businesses to help<br />

them compete and remain marketable.<br />

When we talk about transformation,<br />

it’s about a connection to your corporate<br />

strategy. It’s also about a data<br />

strategy because ultimately I want to<br />

modernize and help transform so I can<br />

leverage the data within my company<br />

to drive insights for the business.”<br />

One new Intel technology that’s<br />

playing a key role in harnessing<br />

increased amounts of data for more<br />

rapid insights is Intel Optane DC<br />

Persistent Memory. In development<br />

for the past 10 years, Intel Optane DC<br />

Persistent Memory represents a<br />

re-architecting of the memory storage<br />

hierarchy. “We’ve created a new<br />

memory pool that is non-volatile, unlike<br />

RAM, and delivers more capacity and<br />

better TCO,” explains Davis. “A great<br />

use case for Optane is in in-memory<br />

databases like SAP Hana. SAP has<br />

been a key innovative partner in<br />

AUGUST <strong>2019</strong>


29<br />

“Digital transformation<br />

strategy needs to be<br />

holistic, because it’s<br />

not just about the<br />

technology”<br />

—<br />

Lisa Davis,<br />

President of Digital Transformation & Scale<br />

Solutions, Enterprise & Government,<br />

Data Center Group, Intel<br />

www.businesschief.com


INTEL CORPORATION<br />

leveraging this new technology, which<br />

allows us to put large amounts of data<br />

in memory, next to the CPU, to solve<br />

the toughest business problems for the<br />

company. That’s the power of this new<br />

technology.” Ultimately, the product will<br />

help Intel and its customers navigate<br />

the exponentially growing ocean of data<br />

covering the world, and draw insights<br />

that will drive customer satisfaction and<br />

help determine where the next stage<br />

of digital transformation leads.<br />

“I remember sitting in budget<br />

committees where people would ask<br />

me when the ‘digital transformation<br />

thing’ was going to be over,” Davis<br />

laughs. “Digital transformation,<br />

certainly in today’s market, doesn’t<br />

have a start and an end. If you continue<br />

to evolve and try to keep pace with the<br />

technology, transformation will always<br />

happen.” Much as it took on a pivotal<br />

role in the democratization and mass<br />

distribution of the microchip over the<br />

last 50 years, Intel is positioning itself<br />

to be at the heart of a new reality,<br />

30<br />

“Digital transformation<br />

strategy needs to be<br />

holistic, because it’s not<br />

just about the technology”<br />

—<br />

Lisa Davis,<br />

President of Digital Transformation & Scale<br />

Solutions, Enterprise & Government,<br />

Data Center Group, Intel<br />

AUGUST <strong>2019</strong>


constantly shaped and reshaped<br />

by digital transformation. Davis is<br />

confident that, going forward, she will<br />

be able to help Intel, its partners and,<br />

most importantly, the end customer,<br />

be prepared to meet the future.<br />

“Intel is continuing to make investments<br />

and will continue to lead innovation to<br />

support our customers and partners.<br />

Certainly, in the areas of hybrid cloud,<br />

artificial intelligence, enterprise<br />

analytics, cybersecurity and even<br />

quantum computing, Intel is about<br />

being at the forefront of providing the<br />

end-to-end solutions that we can build<br />

with our ecosystem of partners to help<br />

all of our customers on their digital<br />

transformation journeys.”<br />

31<br />

CLICK TO WATCH: ‘INTEL OPTANE DC PERSISTENT MEMORY FILLS<br />

THE GAP BETWEEN DRAM AND SSDS’<br />

www.businesschief.com


LEADERSHIP<br />

32<br />

the changing face of<br />

digital manufacturing<br />

Victoria Holt, President and CEO<br />

of digital manufacturer Protolabs<br />

discusses the strategies the company<br />

is using to create and maintain<br />

its competitive advantage.<br />

WRITTEN BY HARRY MENEAR<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

33


LEADERSHIP<br />

34<br />

The global manufacturing industry is undergoing<br />

a transformation every bit as sweeping and<br />

profound as the one that took place over 200<br />

years ago, when cottage industry gave way to<br />

coal-powered factories and the Industrial Revolution<br />

swept around the world. Thanks to meteoric<br />

advances in information technology and business<br />

practice, the Fourth Industrial Revolution is set to<br />

remake the way things are manufactured on a scale<br />

unseen for centuries. For the last 20 years, one<br />

company has been squarely at the forefront of this<br />

tidal wave of change. “We’re the leader in digital<br />

manufacturing, in part because we were invented<br />

that way,” says Victoria Holt, President and CEO<br />

of Protolabs. Based in Minnesota, Protolabs is one of<br />

the world’s fastest turnaround digital manufacturers<br />

of small, mixed batch prototyping solutions.<br />

Founded in 1999 by entrepreneur Larry Lukis,<br />

Protolabs (then called Protomolds) was born from<br />

his frustration with the slow process of acquiring<br />

custom injection molded parts. Gathering a group<br />

of software engineers and machinists, Lukis would<br />

go on to reinvent not only the process by which<br />

injection molding is executed, but also the customer<br />

experience associated with it. “He automated all<br />

of the front-end engineering associated with making<br />

a custom part using software,” says Holt. “When<br />

you look at how much time it takes to actually make<br />

a part, a big portion of the work is that upfront<br />

engineering where you have to put thought into how<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

35


LEADERSHIP<br />

36<br />

“We’re operating<br />

at the cusp of<br />

this industrial<br />

revolution that’s<br />

taking place”<br />

—<br />

Victoria Holt,<br />

President and CEO, Protolabs<br />

you’re going to make that part. We’ve<br />

automated that process with software,<br />

which is what makes us so unique.”<br />

One of Protolabs’ key differentiators<br />

is the way in which it engages and<br />

interacts with its customers. “We’re<br />

100% e-commerce, which in a B2B<br />

world is a little bit unusual, and very<br />

unusual in the world of injection<br />

molding and CNC machining,” Holt<br />

explains. “Making sure we’ve got the<br />

best e-commerce experience and can<br />

service tens of thousands of industrial<br />

customers efficiently with an awesome<br />

experience is really important to us.”<br />

The model has proved a success.<br />

Today, from its eight facilities located<br />

in five countries, Protolabs provides<br />

CNC machining, injection molding,<br />

sheet metal fabrication and 3D printing<br />

services to industry-leading enterprises<br />

worldwide. “We’re operating at the cusp<br />

of this industrial revolution that’s taking<br />

place,” says Holt. “We’re in a great<br />

position to help other manufacturers<br />

take a look at how they can take<br />

advantage of information technology<br />

and software in their manufacturing<br />

processes.” Holt sat down to discuss<br />

the strategies Protolabs is using to<br />

create and maintain its competitive<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘PROTO LABS CEO VICKI HOLT ON THE RISE<br />

OF DIGITAL MANUFACTURING ACROSS EUROPE’<br />

37<br />

advantage, and how it is meeting<br />

the challenges of an industry being<br />

reshaped by consumer demand<br />

and technological advancement.<br />

Holt has worked in manufacturing<br />

for over 40 years. Working first for<br />

the solution spinoff arm of Monsanto<br />

before stints at industrial giants like<br />

PPG Industries and Spartech, she later<br />

arrived at Protolabs in 2014. “When this<br />

opportunity first came across my desk,<br />

I wasn’t sure. It was a smaller company<br />

compared to the other ones I’d run, but<br />

when I took a deeper look at Protolabs,<br />

the more I realized that this is the<br />

most intriguing business I have ever<br />

been involved in,” she enthuses.<br />

Protolabs specializes in creating<br />

hyper-customizable prototype parts<br />

for companies in need of hyperspecialized<br />

manufacturing builds.<br />

In 2014, the company was one of<br />

the first digital manufacturers to launch<br />

an industrial 3D printing service.<br />

The versatility of the medium suits the<br />

company down to a tee and, true to<br />

form, Protolabs is approaching the<br />

process in its own way. “We’re very<br />

differentiated in the way we approach<br />

3D printing,” she explains. “We focus<br />

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LEADERSHIP<br />

38<br />

on the industrial engineer and are<br />

completely technology agnostic in the<br />

sense that we select the 3D printing<br />

technologies that are best for the<br />

industrial engineer and we will work<br />

with the engineer to determine which<br />

type of technology is best for them to<br />

make their part depending on what<br />

they’re trying to do with the part. Then<br />

we make very high-quality 3D printed<br />

parts with a broad range of materials.”<br />

The added versatility of 3D printing<br />

is perfectly suited to the hyperspecialized<br />

builds Protolabs is known for,<br />

and constant technological advances<br />

mean the company is always expanding<br />

its offerings to keep pace with new<br />

frontiers of possibility. In June <strong>2019</strong>,<br />

Protolabs announced the launch<br />

production capabilities for 3D printing<br />

using metal. The added tensile strength,<br />

dimensional accuracy and cosmetic<br />

appearance of metal parts has lead<br />

to clients using Protolabs prints for<br />

production parts rather than just<br />

prototypes. “We’re starting to see a lot<br />

of interest in the aerospace and medical<br />

device areas, where people are taking<br />

advantage of the full design freedom<br />

that you get from 3D printing in order to<br />

create something very unique,” says Holt.<br />

AUGUST <strong>2019</strong>


“We’re starting to<br />

see a lot of interest<br />

in the aerospace<br />

and medical<br />

device areas”<br />

—<br />

Victoria Holt,<br />

President and CEO, Protolabs<br />

Even with the advantages of a 20-year<br />

track record in digital manufacturing,<br />

the landscape today is not without its<br />

challenges. “I think people have this<br />

idea of manufacturing as a dirty, dark<br />

assembly line – like it was in the old<br />

days,” says Holt. “Today, it’s a high tech,<br />

exciting place to work with lots of change.”<br />

She emphasizes that attracting talent,<br />

helping young people entering the<br />

workforce to understand how vibrant<br />

and exciting the space is, has become<br />

a mission-critical priority for Protolabs.<br />

The need for top talent is only emphasized<br />

by the second big challenge in the<br />

industry – something that Holt notes<br />

is sweeping through every business<br />

ecosystem: the accelerating pace<br />

of change.<br />

However, generational transformation<br />

appears to be on her side. “One of<br />

the main trends right now in the<br />

manufacturing sector is very short<br />

product life cycles,” she explains.<br />

“People expect improvements at<br />

a pretty fast clip these days. So, being<br />

able to very quickly design, prototype,<br />

and launch products is a critical<br />

success factor for manufacturers.”<br />

In addition to short production cycles,<br />

consumer demand for quick delivery<br />

39<br />

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LEADERSHIP<br />

40<br />

CLICK TO WATCH: ‘PROTOLABS: THIS IS DIGITAL MANUFACTURING’<br />

and customizability is fast becoming<br />

in vogue. Thankfully, Protolabs’ unique<br />

business model in the manufacturing<br />

space looks to put it in good stead<br />

as generational change permeates<br />

the industry.<br />

“The younger people, in particular,<br />

are very accustomed to 100%<br />

e-commerce. They expect to be able<br />

to buy a custom part over the internet,”<br />

Holt says. “That change helps our<br />

business because part of the challenge<br />

“One of the main<br />

trends right now<br />

in manufacturing<br />

is very short<br />

product lifecycle”<br />

—<br />

Victoria Holt,<br />

President and CEO, Protolabs<br />

AUGUST <strong>2019</strong>


41<br />

we’ve always faced is being a little<br />

different. We’re not like a traditional<br />

manufacturer, so people and companies<br />

have to adapt to our process. Buying<br />

over the internet, which was different for<br />

so long, has grown so much. We’ve got<br />

demographics on our side with younger<br />

people moving into the workforce who<br />

are very accustomed to doing business<br />

digitally and over the internet.”<br />

Looking to the future, Holt believes<br />

that Protolabs’ future is bright. “We<br />

continue to grow. Every year we’re<br />

adding more and more product<br />

developers to our user base,” she<br />

concludes. “It’s just a matter of driving<br />

that awareness and then seeing how<br />

easy it is to use us and how much value<br />

we can deliver to our clients.”<br />

www.businesschief.com


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in the digital age<br />

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TECHNOLOGY<br />

44<br />

WHY CORPORATES<br />

SHOULD LOOK TO<br />

STARTUPS TO SPUR<br />

THEIR INNOVATION<br />

Ritam Gandhi, Founder and Director,<br />

Studio Graphene, explores why<br />

traditional corporations should be<br />

inspired by startups if they want to keep<br />

up with the blistering rate of innovation<br />

WRITTEN BY<br />

RITAM GANDHI<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

45


TECHNOLOGY<br />

46<br />

According to the American Enterprise<br />

Institute (AEI), only 60 of the Fortune<br />

500 companies listed in 1955 still retain<br />

their place amongst the business elite. While<br />

for some of these companies, the decline was<br />

inevitable, for many it reflects their reluctance<br />

to embrace disruptive trends that have<br />

radically transformed the business environment<br />

and the nature of consumer demands.<br />

In their wake has come a new generation<br />

of corporate titans including tech giants like<br />

Facebook, Amazon and Netflix who have<br />

rapidly become the dominant players in their<br />

respective industries. While many of these<br />

companies had humble beginnings as<br />

startups, once they went public, they began<br />

to adopt a more corporate mentality in order<br />

to deliver regular profits for shareholders.<br />

Tesla Founder and CEO Elon Musk is a<br />

high-profile critic of this trend, saying that:<br />

“Being public puts enormous pressure on<br />

Tesla to make decisions that may be right<br />

for a given quarter, but not necessarily right<br />

in the long-term.”<br />

Indeed, part of what marks Elon Musk out<br />

as such a successful entrepreneur is that<br />

he has retained his entrepreneurial spirit<br />

despite Tesla now being one of the biggest<br />

companies in the world. Many of his contemporaries,<br />

visionary leaders who took their<br />

AUGUST <strong>2019</strong>


47<br />

“I believe that established<br />

companies would be wise<br />

to outsource innovation<br />

by partnering with young<br />

and dynamic startups”<br />

—<br />

Ritam Gandhi,<br />

Founder and Director, Studio Graphene<br />

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TECHNOLOGY<br />

48<br />

companies from startup to the upper<br />

echelons of the Fortune 500, have<br />

long since been replaced by processoriented<br />

executives with corporate<br />

backgrounds.<br />

As someone who made the leap<br />

from the corporate world of management<br />

consultancy into the dynamic<br />

startup landscape, I know how difficult<br />

it is for companies to retain their<br />

dynamism as they transition from agile<br />

challenger to established incumbent.<br />

While many founders bemoan the lack<br />

of a level playing field when it comes<br />

to the resources available to large<br />

corporates, being small can be an<br />

advantage for innovative startups as<br />

they are neither too unwieldy nor too<br />

conservative to implement new ideas.<br />

WHAT DO STARTUPS HAVE TO OFFER?<br />

So, if the balance of power is currently<br />

tipping away from large corporates it’s<br />

worth asking what about startups<br />

makes them so innovative. Startups<br />

generally consist of a small team<br />

which means they can remain responsive<br />

to changes in the market. They<br />

also depend for their vitality on<br />

identifying new, more efficient<br />

methods which means they usually<br />

“If large<br />

companies<br />

don’t take the<br />

necessary action<br />

to stay one step<br />

ahead, they’ll<br />

soon find<br />

themselves<br />

falling behind”<br />

—<br />

Ritam Gandhi,<br />

Founder and Director, Studio Graphene<br />

make for more cost-effective enterprises.<br />

As private entities, startups can<br />

make decisions with the long-term in<br />

mind as they don’t have to worry about<br />

the impact of quarterly performance<br />

on their share price.<br />

In my work with startups, I’ve seen<br />

how the need to break new ground<br />

affects the culture of many successful<br />

startups. Indeed, the most successful<br />

see their lack of scale as a virtue<br />

because it makes for clear-eyed<br />

decision-making.<br />

AUGUST <strong>2019</strong>


49<br />

However, even if corporates were to<br />

acknowledge the merits of this<br />

dynamic approach, they are fundamentally<br />

prevented by their size, structure<br />

and priorities from truly adopting a<br />

startup mentality. Simply put, innovation<br />

in the corporate world equates<br />

to risk. Risk of wasted resources,<br />

both in terms of dollars and man-hours.<br />

Risk of reputational damage if a<br />

creative project fails to bear fruit and<br />

in exceptional cases, the risk that a<br />

new product or technology will be so<br />

successful that it will reshape the<br />

industry, making it less favourable<br />

to the company who developed it.<br />

WHY DO BIG CORPORATES FAIL<br />

TO INNOVATE?<br />

While large companies are too big<br />

and have too much on the line to be<br />

truly creative, total disregard for<br />

innovation is not an option. These days,<br />

companies understand that they have<br />

to continue innovating if they want to<br />

guard against the threat of dynamic<br />

www.businesschief.com


TECHNOLOGY<br />

new challengers. Of course, casting<br />

aside your traditional ways of working<br />

comes with an immense amount of risk<br />

and so it’s understandable that many<br />

executives are reluctant to wholeheartedly<br />

commit to new projects.<br />

Some companies reach a compromise<br />

that allows them to balance these<br />

competing objectives. For example,<br />

by implementing schemes that allow<br />

employees to strike a balance<br />

between their work on existing<br />

projects and on developing new ideas.<br />

Google’s ‘20% time’ is probably the<br />

most feted example as the company’s<br />

policy of allowing engineers to devote<br />

20% of their time to personal projects<br />

resulted in some of the company’s<br />

most successful products such as<br />

Gmail, AdSense and Google Talks.<br />

While this can approach can be<br />

a fruitful one, it’s worth noting that many<br />

50<br />

CLICK TO WATCH: ‘RITAM GANDHI TALKS ENTREPRENEURSHIP<br />

AND BUILDING A STARTUP THAT BUILDS OTHER STARTUPS’<br />

AUGUST <strong>2019</strong>


companies have abandoned this model<br />

as they have become large global<br />

businesses. Corporates like Google now<br />

span too many sectors and jurisdictions<br />

to rely on such an ad hoc approach<br />

to innovation. Consequently, they need<br />

to find a framework that allows them<br />

to continue pushing technological<br />

boundaries while still focusing on<br />

maximising the value of their major<br />

revenue-generating products.<br />

WHY SHOULD LARGE CORPORATIONS<br />

LOOK TO COLLABORATE?<br />

The reality is that the corporate world<br />

is being disrupted at an exciting pace.<br />

Therefore, I believe that established<br />

companies would be wise to outsource<br />

innovation by partnering with young<br />

and dynamic startups. Ultimately, these<br />

partnerships have the potential to<br />

create mutual value by granting the<br />

startup access to capital and distribution<br />

51<br />

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TECHNOLOGY<br />

52<br />

“These partnerships have<br />

the potential to create<br />

mutual value by granting<br />

the startup access to capital<br />

and distribution networks<br />

while giving the corporate<br />

a chance to benefit from<br />

innovative new projects”<br />

—<br />

Ritam Gandhi,<br />

Founder and Director, Studio Graphene<br />

AUGUST <strong>2019</strong>


networks while giving the corporate<br />

a chance to benefit from innovative<br />

new projects.<br />

This change in corporate culture<br />

takes many forms including mentorship<br />

programmes and in-house tech<br />

incubators but strategic partnerships<br />

are gradually emerging as the most<br />

effective way of leveraging a startups’<br />

disruptive potential.<br />

As corporations become larger and<br />

more results-oriented it makes it more<br />

difficult for innovative ideas to come<br />

to fruition. That’s why I believe forwardthinking<br />

companies are increasingly<br />

looking to collaboration with startups<br />

as the solution. After all, there’s<br />

nothing to suggest that corporates<br />

and startups have to co-exist as<br />

separate entities. In the digital age,<br />

size doesn’t guarantee future success.<br />

If large companies don’t take the<br />

necessary action to stay one step<br />

ahead, they’ll soon find themselves<br />

falling behind.<br />

53<br />

www.businesschief.com


PEOPLE<br />

54<br />

WeSportUs: how<br />

business strategy<br />

can revolutionise<br />

sports scouting<br />

Could blockchain decentralise talent-spotting<br />

and make it fairer? WeSportUs thinks so.<br />

Ex-Banker Latif Adéothy is applying business<br />

expertise to revolutionise sports scouting<br />

WRITTEN BY LATIF ADÉOTHY<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

55


PEOPLE<br />

56<br />

<strong>Business</strong> is often told to consider<br />

what it can learn from sport. But what<br />

about the other way around? What<br />

could sport learn from business? Sport<br />

focuses on winning, the team spirit and match<br />

analysis, but could it also learn how to focus<br />

on customers, empower teams and better<br />

use technology?<br />

Could technology disrupt sport and the<br />

talent-scouting process? I think it could<br />

definitely benefit from technologies that<br />

could decentralise decision-making.<br />

I had an experience in Africa that convinced<br />

me to try and develop a solution. In Abidjan,<br />

a city on the southern Atlantic coast of<br />

Côte d’Ivoire, I came across a group of young<br />

footballers. Boys, with sandals on their feet,<br />

were playing on a field that looked more like<br />

scrub than a Premiership stadium. They let<br />

me join in for a little game. And we lost 10-0!<br />

Despite having never set foot in a training<br />

centre and playing in sandals, one young<br />

player scored 8 goals! It disappoints me<br />

that this boy’s raw talent could go unspotted<br />

due to a lack of resources and visibility.<br />

The sports world wouldn’t be the first<br />

entertainment industry to be challenged<br />

by technology. The music industry has had<br />

to reinvent itself by harnessing, rather than<br />

AUGUST <strong>2019</strong>


57<br />

“The benefit is twofold:<br />

to give more visibility to<br />

talent, and to facilitate<br />

their relationship with<br />

potential supporters”<br />

—<br />

Latif Adéothy,<br />

Founder, WeSportUs<br />

www.businesschief.com


PEOPLE<br />

58<br />

continuing to fight, technology. So, the<br />

sports world could reinvent itself<br />

through digital to combine entertainment<br />

experience, performance, and the<br />

experiences of professional and<br />

amateur athletes.<br />

The benefit is twofold: to give more<br />

visibility to talent, and to facilitate their<br />

relationship with potential supporters.<br />

All this and an opportunity to restore<br />

sport’s positive image, which has been<br />

tarnished by numerous scandals.<br />

But how would this work when so<br />

many people play sports? In 2017,<br />

two out of five people across Europe<br />

“One young player<br />

scored 8 goals!<br />

It disappoints me<br />

that this boy’s raw<br />

talent could go<br />

unspotted due to<br />

a lack of resources<br />

and visibility”<br />

—<br />

Latif Adéothy,<br />

Founder, WeSportUs<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘WESPORTUS – APP PROMO’<br />

59<br />

played at least one sport once a week;<br />

three out of 10 also played in clubs.<br />

That’s nearly 155mn, not to mention the<br />

amateurs who sometimes play several<br />

sports, in the park or at home. More<br />

than 600,000 hours of videos are<br />

uploaded to YouTube every day. With<br />

so many people participating in sport, it<br />

is difficult to identify the new talent who<br />

could dominate their discipline.<br />

The solution would need to incorporate<br />

an innovative social network<br />

based on openness. Today, our talent<br />

spotting system is focused on just a<br />

few institutions located in the richest<br />

countries. So we need a mechanism<br />

which could enable young talent to<br />

truly emerge from the multitude of<br />

amateur athletes around the world.<br />

This is still difficult to imagine on social<br />

networks in their current format.<br />

In asking myself how we could<br />

make sports-scouting less random,<br />

I started thinking about my experience of<br />

business, banking and blockchain. Could<br />

scouting benefit from blockchain; the<br />

disruptive technology that is disrupting<br />

the business world? It is a decentralised<br />

and participatory system and so, through<br />

its differentiating cultural and monetary<br />

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PEOPLE<br />

60<br />

value proposition, we could use<br />

blockchain to engage the social sports<br />

community in a different way.<br />

Why bet on the blockchain? Because<br />

the fundamentals of this technology are<br />

based on the very notion of transparency<br />

and information sharing. It is a technology<br />

that is open to almost everyone,<br />

is decentralised and transparent. As a<br />

result, each transaction belongs to both<br />

individuals and everyone at the same<br />

time, making the system completely<br />

democratic and robust.<br />

This technology gives us an opportunity<br />

to bring fans back to the centre of<br />

sport. Using decentralisation, athletes<br />

can showcase themselves and fans<br />

can like them, raising their profiles to<br />

potential patrons, sponsors and clubs.<br />

They can even give new talent a boost<br />

by microfunding new boots or access<br />

to professional training grounds.<br />

In business terms, this clearly<br />

demonstrates how sport can better<br />

listen to their customers (fans) and<br />

empower them. Fan involvement could<br />

also bring their passion and sense of<br />

fair play back to the heart of the global<br />

sports community.<br />

I want us to imagine a sports social<br />

network model that integrates<br />

“I want us to imagine<br />

a sports social network<br />

model that integrates<br />

a cryptocurrency and<br />

gives power to the fan<br />

communities that<br />

will elect the young<br />

athletes of tomorrow”<br />

—<br />

Latif Adéothy,<br />

Founder, WeSportUs<br />

AUGUST <strong>2019</strong>


61<br />

a cryptocurrency and gives power to<br />

the fan communities that will elect the<br />

young athletes of tomorrow. It’s not a<br />

pipe dream. Social networks could take<br />

on their full meaning and we can move<br />

from a narcissistic vision to a holistic<br />

approach, taking on the role of<br />

revealing talent and creating a meritocracy.<br />

The world of sport is truly at the<br />

crossroads of funding innovations<br />

and the emergence of new media to<br />

reinvent the entertainment of tomorrow.<br />

At the moment, too much talent is<br />

never seen, never makes it out of the<br />

park game and into the arena, because<br />

the players never get scouted. We’re<br />

inventing a decentralised global talent<br />

detection platform, within the reach of<br />

sports professionals, which will promote<br />

champions from multiple horizons.<br />

What if new technology and business<br />

nous could find, support and sponsor<br />

the next Usain Bolt or the future Kylian<br />

Mbappé? That’s the plan at WeSportUs.<br />

www.businesschief.com


SUSTAINABILITY<br />

THE CUSTOMER<br />

PERSPECTIVE<br />

62<br />

HOW CASCADES AND<br />

SAP PRIORITISE SUPPLY<br />

CHAIN SUSTAINABILITY<br />

<strong>Business</strong> <strong>Chief</strong> sits down with Xavier Duprat,<br />

Director of Logistics and Production<br />

Planning at Cascades, to learn how the<br />

business is putting sustainability at the<br />

forefront of its operations<br />

WRITTEN BY SOPHIE CHAPMAN<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

63


SUSTAINABILITY<br />

64<br />

Aces Sustainability is quickly shifting from<br />

an idealistic preference to a missioncritical<br />

change in operations. Beyond<br />

reduced waste and increased efficiency,<br />

sustainability has emerged as a necessary<br />

way to do business to appeal to both partners<br />

and customers.<br />

Sustainable business practices are<br />

especially relevant in the packaging industry,<br />

historically one of the biggest contributors<br />

to supply-related waste with an estimated<br />

30,000 tons rotting in landfills. Cascades,<br />

one of the top packaging manufacturers<br />

in North America, is on the front lines of<br />

sustainable business practices through<br />

a streamlined supply chain. To hear about<br />

their story, we sat down with Xavier Duprat,<br />

Director of Logistics and Production<br />

Planning at Cascades.<br />

To get started, please tell us about Cascades<br />

and its core values? Cascades produces,<br />

converts and markets packaging and tissue<br />

products that are composed mainly of<br />

recycled fibres. With 25 plants operating<br />

across Canada and the United States, we<br />

are the largest manufacturer of containerboard<br />

in Canada and the sixth-largest in<br />

North America. In line with our corporate<br />

mission to “improve the well-being of people,<br />

AUGUST <strong>2019</strong>


“WITH 25 PLANTS OPERATING<br />

ACROSS CANADA AND THE<br />

UNITED STATES, WE ARE THE<br />

LARGEST MANUFACTURER OF<br />

CONTAINERBOARD IN CANADA<br />

AND THE SIXTH-LARGEST IN<br />

NORTH AMERICA”<br />

—<br />

Xavier Duprat,<br />

Director of Logistics and Production<br />

Planning at Cascades<br />

65<br />

communities and the planet by<br />

providing sustainable and innovative<br />

solutions that create value,” and to<br />

optimise its supply chain, we realised<br />

that we needed more consistent<br />

planning processes, faster planning<br />

cycles and better user engagement<br />

in our supply chain strategy.<br />

Why did Cascades decide to address<br />

the issue of waste, and how are you<br />

doing so? We have evolved our<br />

business processes to address the<br />

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SUSTAINABILITY<br />

66<br />

“WE HAVE EVOLVED OUR<br />

BUSINESS PROCESSES<br />

TO ADDRESS THE ISSUE<br />

OF SUSTAINABILITY<br />

HEAD-ON, KNOWING<br />

THAT IT IS AN INDUSTRY-<br />

WIDE CHALLENGE”<br />

—<br />

Xavier Duprat,<br />

Director of Logistics and Production<br />

Planning at Cascades<br />

issue of sustainability head-on, knowing<br />

that it is an industry-wide challenge.<br />

We understand that sustainable<br />

business practices, like an efficient<br />

supply chain, are not only good for the<br />

planet but are also good for business.<br />

What sustainability challenges has your<br />

company faced? In order to get the<br />

business results we wanted, we knew<br />

that we had to make some changes.<br />

Working alongside supply chain<br />

leaders such as SAP, we determined<br />

that enabling fact-based decision<br />

making by increasing end-to-end<br />

supply chain visibility and providing<br />

access to information from one place<br />

was something that we needed to<br />

address. There was no relationship<br />

between sales and operations and<br />

strategy and tactical operations, which<br />

was also causing issues. We knew<br />

that we needed to make some changes<br />

in order to facilitate faster planning<br />

cycles and consistent processes for<br />

sales and operations planning, while<br />

improving collaboration and user<br />

engagement across functions.<br />

What SAP technologies are you using<br />

to help with the project and what<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘SUSTAINABLE PACKAGING –<br />

CASCADES IS PART OF THE SOLUTION’<br />

67<br />

impact is the project having on the<br />

rest of the business? We introduced<br />

the SAP Integrated <strong>Business</strong> Planning<br />

solution to provide full support for<br />

monthly and weekly planning processes<br />

and to enable easy collaboration and<br />

quick resolution of issues across<br />

functions. The enhanced data and<br />

forecasting help our company make<br />

smarter decisions. With our employees<br />

and sales teams able to focus on<br />

adding value, we were able to be more<br />

agile and responsive to our customers’<br />

needs, allowing us to continue to deliver<br />

the innovative products that our<br />

customers have come to rely on. With<br />

SAP, we now have a comprehensive<br />

and transparent overview of our supply<br />

chain, helping us to be highly responsive<br />

to customer needs.<br />

In the end, why did you select SAP<br />

and how is its technology helping<br />

with efficiency? Implementing SAP<br />

Integrated <strong>Business</strong> Planning has<br />

helped us establish long-term<br />

partnerships with our most strategic<br />

customers. These partnerships<br />

enable us to support our growth and<br />

sustainability goals with our strong<br />

www.businesschief.com


SUSTAINABILITY<br />

68<br />

focus on the supply chain. Since<br />

choosing SAP, we have seen valuedriven<br />

results, including:<br />

• Improved decision-making with<br />

the aid of more-accurate data and<br />

forecasts (up to 80% better forecasting<br />

accuracy<br />

• 90% less time needed for data<br />

collection<br />

• Reduced costs, due to increased<br />

visibility and improved collaboration<br />

• Improved planning security<br />

supporting sales to new markets<br />

• Greater efficiency with maximised<br />

production capacity and faster access<br />

to relevant information for both internal<br />

and external users<br />

• Enhanced ability of employees and<br />

salespeople to focus on value-added<br />

tasks such as customer service<br />

What trends are you seeing within the<br />

packaging industry and how are you<br />

adapting to them? The containerboard<br />

industry is increasingly moving towards<br />

a “buyer’s market,” as more capacity<br />

and foreign investments are shifting<br />

the equilibrium of demand and supply<br />

in this direction. In the past, it might<br />

have been somewhat acceptable to<br />

operate and service customers with<br />

AUGUST <strong>2019</strong>


69<br />

a certain amount of backlog within<br />

a “weekly” window, but I don’t think<br />

that will be the case in the coming<br />

months and years because of this new<br />

reality. Customers are becoming more<br />

demanding – and rightfully so. In<br />

response, organisations need to shift<br />

their mindset to service the customer<br />

in a timely manner, focusing more<br />

rigorously on cost control, working<br />

capital and “just-in-time inventory”<br />

best practices.<br />

Where do you see Cascades going in<br />

the next five years? We need to have<br />

a clear understanding of our global<br />

supply chain and master new processes<br />

in order to deliver and exceed<br />

customer expectations. True customercentricity<br />

will hinge on on-time delivery<br />

as a critical differentiator, and in turn,<br />

help organisations thrive in this new<br />

environment over the next five years.<br />

www.businesschief.com


CITY FOCUS<br />

70<br />

City Focus<br />

LOS AN<br />

<strong>Business</strong> <strong>Chief</strong> observes the oversubscribed,<br />

undersupplied, high-priced housing market<br />

in the United States’ second-largest city, and<br />

some of the enterprising startups and firms<br />

working to disrupt the multi-billion dollar<br />

Los Angeles real estate space<br />

AUGUST <strong>2019</strong>


WRITTEN BY HARRY MENEAR<br />

GELES<br />

71<br />

www.businesschief.com


CITY FOCUS | CHICAGO<br />

LOS ANGELES<br />

72<br />

T<br />

he United States’ second most-populated<br />

metropolitan area, Los Angeles County<br />

sprawls across more than 4,000 sq m<br />

and is home to in excess of 10mn people. The City<br />

of Los Angeles itself houses more than 4mn human<br />

beings, as well as the heart of the global entertainment<br />

industry, and home to Fortune 500<br />

companies like CBRE Group, AECOM and KB<br />

Home. In 2017, the tri-county area of Los Angeles-<br />

Long Beach-Anaheim reached a collective GDP<br />

of more than US$1trn. However, while the average<br />

cost of living in the city is 48.2% higher than<br />

the national average, according to Kiplinger,<br />

median household incomes are roughly $3,00<br />

below the US median point. This hasn’t stopped<br />

people flocking to America’s second city though,<br />

drawn by its cultural prominence and aesthetic<br />

of glamorous excess.<br />

Famously, the principalities of the rich and<br />

famous, Los Angeles neighborhoods like Bel Air<br />

and Beverly Hills boast some of the largest, most<br />

expensive properties in the country. Complete with<br />

12 bedrooms, 21 bathrooms, three kitchens and five<br />

bars - not to mention a spa and massage studio,<br />

fitness center and 85-foot infinity swimming pool -<br />

924 Bel Air Road is comfortably the most expensive<br />

home on the market in the state today,<br />

with a $188mn price tag.<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

73


CITY FOCUS | LOS ANGELES<br />

Luxury mega mansions aside,<br />

the Los Angeles property market is<br />

potentially fertile ground for real<br />

estate businesses. In December 2018,<br />

the median property price in Los Angeles<br />

was $879.5K, trending up 12.9%<br />

year-over-year, according to research<br />

done by Norada Real Estate. The city<br />

is also reportedly in the grips of a<br />

housing shortage. With this combination<br />

of high demand<br />

‘The average<br />

cost of living<br />

in Los Angeles<br />

is 48.2% higher<br />

than the national<br />

average’<br />

74<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘JACK RYAN, CEO OF REX, INTERVIEW ON BUSINESS ROCKSTARS’<br />

75<br />

and an economically stratified population,<br />

there are several promising<br />

startups looking to harness the power<br />

of cutting-edge technologies to enable<br />

Los Angeleno home hunters.<br />

REX REAL ESTATE<br />

Utilising artificial intelligence (AI) and<br />

machine learning (ML) solutions, REX<br />

Real Estate aims to help buyers and sellers<br />

bypass the expensive Multiple<br />

Listings Service process used by real<br />

estate agents, marketing houses directly<br />

to consumers. Founded in 2015, the<br />

startup is based in Woodland Hills,<br />

on the border of the Santa Monica<br />

mountains. Aiming to disrupt the traditionally<br />

expensive and sales-focused<br />

real estate industry, REX pays its<br />

agents larger salaries and incentivises<br />

them based on customer satisfaction,<br />

rather than the rapid closure of deals.<br />

Unlike traditional real estate brokers,<br />

REX charges a flat commission of 2%,<br />

rather than the usual 5-6%.<br />

The company also has a strong<br />

sense of social responsibility; for every<br />

50 homes sold, the company donates<br />

one to a family in need, building homes<br />

in Cambodia and Columbia.<br />

www.businesschief.com


CITY FOCUS | LOS ANGELES<br />

76<br />

COVER TECHNOLOGIES<br />

For some, just buying a home isn’t<br />

enough; building one from the ground<br />

up to your exact specifications is all<br />

that will suffice. Since 2014, local tech<br />

and architecture startup Cover Technologies<br />

has been working to provide<br />

custom-designed and built ‘backyard<br />

studios’ to the residents of Los Angeles.<br />

Cover uses proprietary design<br />

software and a precision manufactured<br />

building system to deliver<br />

exceptional modern design, functionality,<br />

and energy performance,<br />

in a fraction of the time of traditional<br />

custom construction. The company’s<br />

software generates three custom<br />

designs in as little as three days.<br />

Cover maintains the studios make<br />

for excellent short-term rental accommodation,<br />

studio space, home gyms,<br />

offices and of course, potentially cheap<br />

solutions for LA’s housing shortage.<br />

According to Forbes, Cover can deliver<br />

a 400 sq ft prefabricated structure<br />

between $120,000 and $160,000.<br />

In 2018, founders Alexis Rivas and<br />

Jemuel Joseph were named to the<br />

AUGUST <strong>2019</strong>


Forbes 30 Under 30 in Manufacturing<br />

and Industry list.<br />

ANDREW JONES AUCTIONS<br />

Decorating a house can be as much<br />

of a struggle as the process of buying<br />

one. For LA’s wealthiest residents,<br />

seeking out unique and valuable items<br />

is big business. Last year, just south<br />

of downtown Los Angeles, Andrew<br />

Jones opened the city’s newest<br />

auction house. A full service art<br />

and antiques auction firm, Andrew<br />

Jones Auctions celebrated its one<br />

year anniversary in <strong>2019</strong>, according 77<br />

CLICK TO WATCH: ‘LA STARTUP OFFERS CUSTOM SMALL PREFABS<br />

ADAPTED TO AREA CODE’<br />

www.businesschief.com


CITY FOCUS | LOS ANGELES<br />

to a report by the Los Angeles Times.<br />

The two-day anniversary sale saw the<br />

house close deals amounting to $1.5mn,<br />

including a set of rare books by C.L.F.<br />

Panckoucke worth $220,000.<br />

Jones, originally from the UK,<br />

has worked in auction houses since<br />

the age of 16 and has brought more<br />

than 40 years’ experience in the busi-<br />

“The modern approach<br />

to auctioneering<br />

is embracing all the<br />

modern technology”<br />

—<br />

Andrew Jones,<br />

Founder and CEO,<br />

Andrew Jones Auctions<br />

78<br />

AUGUST <strong>2019</strong>


ness to the endeavor. Like every<br />

industry, however, high end auctioneering<br />

has seen its share of disruption from<br />

the internet age. The Times reported<br />

that, at the anniversary auction,<br />

“in a sign of how much the auction business<br />

has changed, only 100 people<br />

attended in person and 1,935 participated<br />

online.”<br />

“It was a little confusing, disorienting<br />

… It took about 20 lots for me to just<br />

remember that there were people out<br />

there,” remarked Jones. “The modern<br />

approach to auctioneering is embracing<br />

all the modern technology, understanding<br />

that the good old days as I recall them<br />

are gone, and you really have to be fully<br />

onboard with social media platforms.”<br />

79<br />

www.businesschief.com


TOP 10<br />

80<br />

AUGUST <strong>2019</strong>


Highest paid CEOs<br />

in North America<br />

81<br />

<strong>Business</strong> <strong>Chief</strong> takes a closer look at<br />

the highest paid CEOs at America’s<br />

biggest companies, according to a 2018<br />

report by <strong>USA</strong> Today<br />

WRITTEN BY AMBER DONOVAN-STEVENS<br />

www.businesschief.com


TOP 10<br />

82<br />

10<br />

Randall Stephenson<br />

AT&T<br />

Randall Stephenson is an American telecommunications executive<br />

and the chairman of AT&T. AT&T is the world’s largest telecommunications<br />

company with its headquarters at Whitacre Tower<br />

in Downtown Dallas, Texas. The telecommunications provider<br />

was established 35 years ago, and today employs over 268,540<br />

people with a revenue of $163.8bn. Stephenson receives annual<br />

compensation of $28.7mn.<br />

AUGUST <strong>2019</strong>


83<br />

09<br />

Alex Gorsky<br />

Johnson & Johnson<br />

Alex Gosrky is the chairman of one of the most valuable companies:<br />

Johnson and Johnson, the medical product company that specialises<br />

in consumer and pharmaceutical goods, and medical devices.<br />

The Kansas City-born businessman receives $29.8mn from the 133-yearold<br />

company and oversees 126,400 employees. He featured as one<br />

of the most influential leaders by Pharma Voice n 2014. He recently<br />

received CADCA Humanitarian of the Year Award and was awarded<br />

an Honorary Doctorate from Thomas Jefferson University in Philadelphia.<br />

www.businesschief.com


TOP 10<br />

84<br />

Indra K. Nooyi<br />

PepsiCo<br />

Indra K. Nooyi was the CEO of PepsiCo, from 2006 until 2018, before<br />

passing the position to Ramon Laguarta. Nooyi is responsible for<br />

the successful redirection of PepsiCo’s business strategy, navigating<br />

it away from its standardised ‘junk food’ products towards healthy<br />

alternatives. The 63-year-old was ranked amongst the 100 most<br />

powerful women in 2014 by Forbes. Today, Nooyi has a salary of<br />

$31.1mn and has become joint director of a public-private partnership<br />

with the Connecticut Department of Economic and Community<br />

Development, called the Connecticut Economic Resource Center.<br />

AUGUST <strong>2019</strong>


Rewiring the T-Mobile<br />

Supply Chain with Digital<br />

Technology platform<br />

T-Mobile is known for its resolute pursuits and<br />

unwavering focus on customer experience. Digital<br />

Transformation was the preferred strategy and supply<br />

chain was one of the chosen areas for transformation<br />

in order to build foundational capabilities. The tenets<br />

of the Digital Supply chain transformation included<br />

Customer Centricity, Real-time Inventory visibility and<br />

Asset traceability, Time to market and integration with<br />

other partner ecosystems.<br />

Tech Mahindra, #15 in the Forbes Digital 100 ranking<br />

2018, collaborated with T-Mobile to take up the<br />

challenge of going beyond the brief through architectural<br />

simplifications and automation through a co-created<br />

framework for transformation.<br />

Whilst the idea was to shatter the architectural<br />

monolith, the efforts were centered around “ Small<br />

and RoI-driven” bets among the others which include<br />

Inventory serialization, reverse logistics serialization,<br />

IMEI tracking, and applications that were delivered<br />

successfully through 100% agile mode of execution.<br />

The resulting KPI’s were higher NPS, reduced time<br />

to market, reduced inventory cycle time and better<br />

control over operating costs. The next time a<br />

customer connects with any T-Mobile touch point and<br />

is able to access real-time inventory, check product<br />

availability, trade-off an old phone for a new one in a<br />

frictionless manner, it is the Digital transformation in<br />

action, enabled by a robust T-Mobile - Tech Mahindra<br />

partnership.<br />

Tech Mahindra’s ability to deliver value to the<br />

business with a state-of-the-art digital platform and<br />

transforming the culture of the operations has helped<br />

T-Mobile achieve digital maturity in a record time.<br />

To learn more visit us at, https://www.techmahindra.com/cwce.html


TOP 10<br />

86<br />

Jeffrey L. Bewkes<br />

Time Warner<br />

Jeffrey L. Bewkes became the CEO of Warner Media, formerly Time<br />

Warner, in 2008. He held the role for the following decade, and after<br />

it was acquired by AT&T in 2016, he assisted with the transition.<br />

The Media executive has remunerations of $32.6mn.<br />

AUGUST <strong>2019</strong>


87<br />

Brian L. Roberts<br />

Comcast<br />

Brian L. Roberts is an American CEO who is at the helm of Comcast.<br />

He is considered to be “Pennsylvania’s most powerful businessman,”<br />

according to 2003 “The Pennsylvania Report Power 75.” Comcast<br />

was originally founded by his father, Ralph J. Roberts, and Brian<br />

Roberts became President of Comcast Corporation in 1990 when<br />

the company had $657 million in annual revenue. Today the company<br />

a revenue of $80.4bn, and employs 150,000 people. As of last year,<br />

his recorded compensation was recorded at $33.0mn<br />

www.businesschief.com


TOP 10<br />

88<br />

Robert A. Iger<br />

Disney<br />

Robert A. Iger is both chairman and CEO of the largest media<br />

conglomerate in the world: The Walt Disney Company. He has overseen<br />

major acquisitions such as Pixar in 2006 for $7.4bn, Marvel Entertainment<br />

in 2009 for $4bn, Lucasfilm in 2012 for $4.06bn, and 21st<br />

Century Fox in <strong>2019</strong> for $71.3bn. Disney has annual profits of $9.4bn<br />

and employs over 195,000 individuals. Iger receives compensation<br />

of over $36.3mn, and in recent months has been rumoured to be a<br />

contender in the 2020 US presidential elections, according to Forbes.<br />

AUGUST <strong>2019</strong>


89<br />

Safra A. Catz<br />

Oracle<br />

Safra A. Catz is an Israeli-born American co-CEO of the multinational<br />

computer technology corporation, Oracle Corporation. As of last<br />

year, Oracle became the third-largest tech firm, with revenue of<br />

$37bn. In addition to her position, she has been of assistance to<br />

President Trump, during his transition term, and she lectures at Stanford<br />

Graduate School of <strong>Business</strong>. As of April 2017, she became the<br />

highest-paid female CEO of any US company, making over $40.7mn.<br />

www.businesschief.com


TOP 10<br />

90<br />

Mark V. Hurd<br />

Oracle<br />

Mark V. Hurd is the other co-CEO of the Oracle Corporation. He makes<br />

more than his co-CEO, Safra A. Catz, with an income of $40.8mn.<br />

Before his move to Oracle, Hurd was the chairman, president and<br />

CEO of Hewlett-Packard (HP), until he resigned in 2010. His strict<br />

cost-cutting at HP proved successful as the company navigated the<br />

recession, making profit as opposed to his projected deficit. This was<br />

apparently the motivation for previous CEO, Larry Ellison, appointing<br />

him as co-CEO of Oracle.<br />

AUGUST <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 />

Dirk Van de Put<br />

Mondelez International<br />

Dirk Van de Put is <strong>Chief</strong> Executive Officer of Mondelēz<br />

International and has a total compensation of $42.4mn.<br />

The confectionery company Mondelēz International<br />

has over 90,000 employees across America and<br />

generates a revenue of $25.9bn. Van de Put has dual<br />

citizen as both a Belgium and American citizen, and<br />

completed his formal education in Belgium, achieving<br />

a doctorate in veterinary medicine.<br />

92<br />

CLICK TO WATCH: ‘BIG CONSUMER BRANDS ON TRADE AND TECH TRENDS’<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

93


TOP 10<br />

94<br />

AUGUST <strong>2019</strong>


Brian Duperreault<br />

AIG<br />

Brian Duperreault is the highest-paid CEO in the US, with<br />

a total compensation of $43.1mn. Duperreault has spent<br />

the entirety of his career within the insurance industry.<br />

He started at AIG as an actuary in 1973, before working<br />

his way up the ranks, but left when it seemed unlikely<br />

that his predecessor Hank Greenberg would retire.<br />

Duperreault himself retired in 2006 but was enlisted by<br />

Marsh & McLennan Companies to return to the industry<br />

in 2008 to rebuild the company following its 2004<br />

bid-rigging scandal. His second retirement in 2012 was<br />

short-lived, as his interest in data-analytics inspired him<br />

to create Hamilton Insurance Group, in Bermuda during<br />

December 2013. He was called back to AIG in 2017 to<br />

assist in the rebuilding of the company, which had been<br />

underperforming since the 2008 recession. He transformed<br />

AIG, building its revenue to $52.3bn. He has won<br />

a vast number of awards and honours and is currently<br />

a member of the Wall Street Journal CEO Council.<br />

95<br />

www.businesschief.com


96<br />

PRYSMIAN GROUP<br />

GOES GLOBAL<br />

WITH ITS LATEST<br />

ACQUISITION<br />

WRITTEN BY<br />

DAN BRIGHTMORE<br />

PRODUCED BY<br />

DENITRA PRICE<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

97


PRYSMIAN GROUP<br />

PRYSMIAN GROUP’S SUPPLY CHAIN<br />

DIRECTOR, GIANMICHELE ALIVIA,<br />

AND CPO, NA BRIAN SCHULTIES,<br />

REVEAL HOW ITS MERGER WITH<br />

GENERAL CABLE HAS EXPANDED<br />

THE COMPANY’S GLOBAL REACH<br />

AND OFFERED THE OPPORTUNITY<br />

TO MAXIMIZE ITS SYNERGIES<br />

98<br />

P<br />

rysmian Group is now a global force in<br />

the energy and telecom cable systems<br />

industry. Boasting nearly 140 years’<br />

experience, the company’s wide service offering<br />

has driven sales exceeding €11bn via a<br />

29,000-strong workforce operating in over 50<br />

countries across 112 plants worldwide. Since the<br />

$3bn acquisition of General Cable in 2018, the<br />

group is embracing the complex transformation<br />

required to merge company cultures and meet the<br />

needs of a global footprint, while managing the<br />

synergies between procurement processes,<br />

supply chain and operations.<br />

Prysmian’s CPO, NA Brian Schulties worked<br />

at General Cable, starting in 2006, so he has<br />

a unique perspective on the challenges ahead.<br />

“While the re-organization was challenging, it was<br />

timely,” he reveals. “We’re merging two cultures<br />

into one and it’s not something you do in 30 days…”<br />

Senior Supply Chain Director Gianmichele Alivia<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

99


Bekaert is a strategic and long-term<br />

partner for us on steel wire and cables.<br />

Their high quality, focus on research and<br />

innovation, new product development<br />

and responsiveness enable Prysmian/<br />

General Cable to be successful in<br />

serving the market. We truly appreciate<br />

the relationship and push to be stronger<br />

together for many years to come.”<br />

Arvind Parsa, Director of Metals<br />

Bekaert is a global producer of steel wire and cable products including energy and telecommunications solutions.<br />

Our products meet industry quality standards and can be refi ned to meet specifi c product or production requirements.<br />

1x3, • 1x7, 1x19 wire strand<br />

ACSR • and ACSS<br />

Next • generation ACSR<br />

Guy • strand/wire, including Alumaclad<br />

Static • strand, including Alumaclad<br />

Utility • staples<br />

Messenger • strand/wire<br />

A wide • range of coatings, including Bezinal ®<br />

Get in touch! www.bekaert.com/powersolutions


CLICK TO WATCH: ‘PRYSMIAN GROUP AND GENERAL CABLE JOIN FORCES’<br />

101<br />

agrees: “Setting up the new organization<br />

was only a part of the work that had<br />

to be done. We’re now starting the<br />

discussions about merging the ERP<br />

systems and the tools we need.”<br />

Following its acquisition by Goldman<br />

Sachs in 2005, the former Pirelli<br />

Cables & Systems (where Schulties<br />

also worked prior to General Cable)<br />

was renamed Prysmian. “The company<br />

has grown tremendously in the past<br />

year,” explains Alivia. “We generate<br />

approximately $4.1bn in revenue in<br />

North America, which was more or<br />

less what the legacy Pirelli company<br />

was doing globally. All of the challenges<br />

are mastered here. Since the acquisition,<br />

we’ve been working to bring these two<br />

entities together. North America is where<br />

the bulk of the general cable business<br />

was and so this is where the majority<br />

of the effort has been placed.” That<br />

effort has included the integration of<br />

5,000 staff while managing fixed costs,<br />

something that has been key to Prysmian’s<br />

success as a lean organization.<br />

Schulties admits a $3bn acquisition<br />

invites a period of instability.<br />

www.businesschief.com


PRYSMIAN GROUP<br />

102<br />

AUGUST <strong>2019</strong>


“Expectations since the merger are<br />

high, and we only have two years from<br />

start-to-finish to work on the synergies<br />

– beyond that it becomes the normal<br />

course of business.” He cites the<br />

success of the integration of Draka<br />

into Prysmian Group in 2011 and notes<br />

that CEO Valerio Battista has stated<br />

the progress with synergies is ahead<br />

of schedule. Alivia adds that the same<br />

challenge is being tackled on the<br />

supply chain side “The first step was<br />

to look at inventory (since the merger<br />

inventory locations have dropped<br />

from 77 to 70) but now we’re analyzing<br />

more complex points including the<br />

rationalization of our network where<br />

inventory is kept, our flows, product<br />

location and distribution. We need<br />

to ensure we make the right product<br />

in the best facility,” he explains.<br />

Prysmian is engaged in setting new<br />

contracts with carriers and working<br />

on their implementation with third-party<br />

logistics companies essential for<br />

managing the network. “It’s not only<br />

the logistics network,” adds Alivia.<br />

“We are reviewing every single facility<br />

and product to make sure we service<br />

the customer from where it makes the<br />

most sense; we’re looking at cost of<br />

103<br />

www.businesschief.com


When atoms come together, forming stronger cable insulations<br />

and jackets, we benefit from the energy that connects us.<br />

Advancing a world of possibilities.<br />

lyondellbasell.com


“WE ARE GOING STATE-OF<br />

THE-ART WITH THE LATEST<br />

VERSION OF SAP, WHICH<br />

IS IOT (INTERNET OF<br />

THINGS READY. THIS WILL<br />

ALLOW US TO BUILD ONTO<br />

IT AND LOOK AT THE<br />

POTENTIAL FOR PREDICTIVE<br />

ANALYTICS, MACHINE<br />

LEARNING AND AI”<br />

—<br />

Brian Schulties,<br />

CPO NA, Prysmian Group<br />

production and factory efficiencies,<br />

but also the cost of delivery.”<br />

Beyond the strategic change<br />

triggered by the merger, Alivia notes<br />

how Prysmian is always open to<br />

dynamic change in the quest for<br />

greater efficiencies through the<br />

implementation of new technologies.<br />

“We’ve run idea pilots with augmented<br />

reality in our factories and trialed<br />

smart devices, such as sensors, both<br />

in our production lines and out in the<br />

field.” The group is keen to implement<br />

machine learning to help with its<br />

logistics network, though Alivia<br />

105<br />

Gianmichele Alivia<br />

EXECUTIVE PROFILE<br />

Alivia started his career at Pirelli in Milan with the<br />

corporate supply chain team. Since 2006, he has moved<br />

back and forth between Italy and the US working mostly<br />

on supply chain and managing the company’s B2B website.<br />

Alivia spent time at the former U.S. headquarters in South<br />

Carolina during the merger with General Cable. At the time,<br />

he was in charge of the regional supply chain of Legacy<br />

Prysmian, North America, and then, after the acquisition<br />

of General Cable, Alivia moved to current headquarters<br />

located in Highland Heights, KY and took a role<br />

in the new organization where he is working<br />

on the synergies project following the merger<br />

between General Cable and Prysmian Group.<br />

www.businesschief.com


PRYSMIAN GROUP<br />

We believe it’s more than a buzzword.<br />

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AUGUST <strong>2019</strong>


concedes the cable industry is quite<br />

conservative and only implements<br />

technology when it can serve a proven<br />

purpose. “One of the most interesting<br />

things we’re doing is putting tracking<br />

devices on our cable drums to be able<br />

to monitor where they are at all times<br />

and ensure there is a faster turnaround<br />

of these assets once the cable on the<br />

drums has been used,” he reveals.<br />

Meanwhile, Schulties believes there’s<br />

potential to harness AI capabilities to<br />

reduce the need for remedial tasks.<br />

Almost a year on from the acquisition,<br />

Prysmian Group is preparing the<br />

significant step of merging its ERP<br />

systems. “It will generate efficiencies<br />

“EXPECTATIONS SINCE<br />

THE MERGER ARE HIGH,<br />

AND WE ONLY HAVE TWO<br />

YEARS FROM START-TO-<br />

FINISH TO WORK ON THE<br />

SYNERGIES – BEYOND THAT<br />

IT BECOMES THE NORMAL<br />

COURSE OF BUSINESS”<br />

—<br />

Brian Schulties,<br />

CPO NA, Prysmian Group<br />

107<br />

Brian Schulties<br />

EXECUTIVE PROFILE<br />

Brian Schulties is the head of Purchasing for<br />

Prysmian Group North America. Schulties<br />

has more than 30 years of experience<br />

in the procurement field in the automotive,<br />

foundry and wire and cable markets.<br />

Prior to joining the company, he was the<br />

vice president of Sourcing for General Cable.<br />

Brian holds a bachelor’s degree in business<br />

administration from Cleary University<br />

and has a lifetime C.P.M. certification.<br />

www.businesschief.com


PRYSMIAN GROUP<br />

108<br />

with everyone operating the same way<br />

on a shared system; obstacles will be<br />

removed giving us a better foundation<br />

to build for the future,” confirms Alivia.<br />

“We are going state-of-the-art with the<br />

latest version of SAP, which is IoT<br />

(Internet of Things) ready. This will<br />

allow us to build onto it and look at<br />

the potential for predictive analytics,<br />

machine learning and AI.”<br />

Beyond the challenges of the<br />

merger, innovation remains a high<br />

priority for Prysmian with 25 R&D<br />

centers across the globe and a<br />

commitment to patenting new cable<br />

designs. Schulties is keen to act on<br />

the voice of the customer and see the<br />

company leveraging its supply base,<br />

as far as its technology and ability<br />

to provide innovation with delivery<br />

to market. On that quest, Prysmian<br />

works with 3PL, transportation and<br />

supplier partners. “We’re in discussion<br />

with companies like UPS,” says Alivia.<br />

“How do we create more than just<br />

a supplier/customer relationship?<br />

How do we form a strategic partnership<br />

with the extended supply chain<br />

team to come up with solutions?<br />

We’re having whiteboard discussions<br />

to find ways of solving shared problems<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

109


PRYSMIAN GROUP<br />

MARKS THE SPOT<br />

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Headquarters 99 East River Drive, East Hartford, CT 06108 • 860 622-7626<br />

Offices & Plants: East Hartford, CT • Orangeburg, SC • Canastota, NY • Miami, FL<br />

Willimantic, CT • South Windsor, CT • Wilmington, DE • Hickory, NC<br />

AUGUST <strong>2019</strong>


across the entire infrastructure of<br />

our organization.”<br />

Focusing on shared sustainability<br />

goals is also key for a company<br />

ranked third in its sector by the 2018<br />

Dow Jones Sustainability Index (DJSI).<br />

Prysmian is working with procurement<br />

to identify ways it can increase the<br />

percentage of return of recycled<br />

plastic and wood from pallets.<br />

Meanwhile, it is engaging with freight<br />

providers who invest in new trucks<br />

to improve mileage efficiency and<br />

reduce emissions. “We’ve also joined<br />

€11.bn<br />

Approximate<br />

revenue<br />

1879<br />

Year founded<br />

29,000<br />

Approximate number<br />

of employees<br />

111<br />

CLICK TO WATCH: ‘PRYSMIAN GROUP SHOWS ITS ADVANCED VESSELS FLEET’<br />

www.businesschief.com


PRYSMIAN GROUP<br />

112<br />

SUSTAINABILITY<br />

Prysmian 3rd in the Dow Jones Sustainability Index<br />

Prysmian works with its partners<br />

for a common goal: achieving<br />

sustainability now and for the<br />

future. It has improved its<br />

ranking due to numerous actions<br />

completed in the environmental,<br />

social and governance fields.<br />

These include, amongst other<br />

things: vesting the Board of<br />

Directors’ Compensation and<br />

Nomination Committee with<br />

tasks such as: overseeing<br />

sustainability issues; adopting<br />

inclusion and diversity policies;<br />

implementing a Code of <strong>Business</strong><br />

Conduct designed to disseminate<br />

responsible business practices<br />

along the supply chain; reducing<br />

emissions of ozone-depleting<br />

substances; extending the KPIs<br />

adopted in its own Sustainability<br />

Report, drawn up according to<br />

the G4 guidelines of the Global<br />

Reporting Initiative.<br />

AUGUST <strong>2019</strong>


the SmartWay,” adds Alivia. “It’s an<br />

EPA (Environmental Protection<br />

Agency) program whereby companies<br />

work collectively to reduce emissions<br />

and improve efficiency.” SmartWay<br />

offers an integrated set of no-cost,<br />

peer-reviewed sustainability accounting<br />

and tracking tools to help companies<br />

make informed freight transportation<br />

choices across their supply chain.<br />

Looking ahead, Prysmian’s strategy<br />

is to be “consolidators of the market,”<br />

says Alivia. “We want to squeeze<br />

efficiencies out of the companies we<br />

acquire, generate cash, pay the debt<br />

and get ready for the future acquisition.<br />

The fact that we’ve just made a<br />

big purchase doesn’t mean we’re not<br />

analyzing the next potential acquisition<br />

two or three years from now.”<br />

The strategy is set: making links in<br />

the chain is building a bright future<br />

for Prysmian and its customers.<br />

113<br />

www.businesschief.com


114<br />

Setting the trends<br />

in the supply<br />

chain sector at<br />

Steward Health<br />

Care<br />

WRITTEN BY<br />

SEAN GALEA-PACE<br />

PRODUCED BY<br />

DENITRA PRICE<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

115


STEWARD HEALTH CARE<br />

Michael Prokopis, Vice President<br />

of Supply Chain at Steward Health<br />

Care, discusses the supply chain<br />

strategies his firm is leveraging<br />

amidst digital transformation<br />

in the healthcare sector<br />

116<br />

A<br />

s the largest private, tax paying, physician-led<br />

healthcare network in the US,<br />

Steward Health Care boasts an extensive<br />

portfolio of 38 hospitals in the US and Malta.<br />

Having experienced a significant transformation<br />

in its offering over the past few years, the hospital<br />

prioritises the importance of first-class care to its<br />

patients. With procurement becoming increasingly<br />

influential to the way Steward Health Care operates,<br />

the firm created a shared services model which<br />

evaluates how the facilities are acquired. Michael<br />

Prokopis, Vice President of Supply Chain<br />

at Steward Health Care, discusses his company’s<br />

journey to transform its supply chain. “In shared<br />

services model, we have a number of different<br />

teams all working together,” he says. “We have<br />

a contracting department as well as a data team<br />

that helps us to understand the value metrics<br />

as well as reporting out to the facilities and<br />

observing how they’re doing on the KPIs. We have<br />

a procurement group which processes requisitions<br />

and turns them into purchase orders. We also have<br />

a value analysis wrapper, which allows us to<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

117


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STEWARD HEALTH CARE<br />

120<br />

evaluate from a clinical perspective<br />

how every single product that<br />

we introduce into the supply chain<br />

and deliver to our clinicians helps<br />

us decide whether it’s better than<br />

something we’re already using.”<br />

Having taken steps to embrace<br />

digitalisation over the past couple<br />

of years, Steward Health Care<br />

is currently operating two ERPs<br />

and is well underway in its digital<br />

transformation journey. “We’re<br />

on a digital path,” affirms Prokopis.<br />

“We know we’ve got to get to one<br />

enterprise resource planning capability,<br />

and we’re in the process of undergoing<br />

that transformation now. What’s<br />

critically important from there<br />

is how you take that information<br />

and begin to use it, in order to get<br />

better consumption information at<br />

the point of care and understand<br />

what your inventory positions are.<br />

We’re also creating a mission control<br />

capability that will allow us to predict<br />

our ability to deliver care in advance.<br />

It’s not enough that we schedule<br />

a patient for an operating room<br />

procedure two or three weeks out.<br />

We also then have to understand<br />

“We fundamentally<br />

believe innovation<br />

is the core”<br />

—<br />

Michael Prokopis,<br />

Vice President of Supply Chain<br />

at Steward Health Care<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘ABOUT STEWARD HEALTH CARE’<br />

121<br />

what the nature of supply is and<br />

we can get the supply at the point<br />

of care when we need it.”<br />

With a determination to lead the field<br />

and remain innovative in the healthcare<br />

sector, Steward Health Care remains<br />

agile as it responds to the latest trends<br />

in the supply chain space. “The back<br />

orders are always a problem. We have<br />

to ask ourselves how we make sure,<br />

with the highest level of prediction,<br />

we can deliver the things that we’re<br />

promising to our customers,” says<br />

Prokopis. “It’s really about deciding<br />

how we can predict the back order<br />

by watching and monitoring. You have<br />

to ask yourself what you are going<br />

to do about it, and how you can do<br />

it in advance in order to counter<br />

the problem from happening.”<br />

Prokopis believes what really<br />

differentiates Steward Health Care<br />

from its rivals is value analysis.<br />

“If you look at other hospital organisations,<br />

they have a grassroots approach<br />

where there might be a value analysis<br />

team that supports every hospital,”<br />

he explains. “Most will also have<br />

www.businesschief.com


STEWARD HEALTH CARE<br />

122<br />

an executive steering committee,<br />

what makes ours different is that<br />

we also have a product category<br />

team serving as the inflection point<br />

to understand what’s happening<br />

in the facilities and generate lots of<br />

grassroot ideas that are evaluated<br />

and monitored for broad standardization<br />

across our nine-state footprint.”<br />

Due to the firm’s significant transformation<br />

over the past two years which<br />

has seen the number of Steward<br />

Health Care hospitals dramatically<br />

increase from 10 to 38, the company<br />

considers innovation a key pillar to its<br />

future growth and pivotal to success.<br />

“We fundamentally believe innovation<br />

is the core,” explains Prokopis. “Due<br />

to the way we’ve expanded, we’re<br />

moving at the speed of light. I like<br />

to joke that we’re a car moving down<br />

the road at 100mph and we’re not only<br />

changing the tires, but we’re also going<br />

to swap out the engine and the<br />

AUGUST <strong>2019</strong>


transmission at the same time.<br />

We have to do things differently<br />

in order to find those value pockets<br />

and continue to drive towards quality<br />

of care. It’s not just about consolidating<br />

standards or bulk buys. We’re constantly<br />

pushing ourselves to see if there’s<br />

a way for us to improve, reimagine<br />

and rethink the way that we’re working<br />

in our hospitals, and most importantly,<br />

delivering care for our patients.”<br />

Operating with a firm customer-centric<br />

approach, Prokopis is constantly<br />

evaluating how his firm can become<br />

more sustainable and drive more value<br />

for patients. “One of the things that<br />

we say is that every dollar we save<br />

in the supply chain is not a dollar that<br />

rolls to the bottom line – it’s actually<br />

a dollar that we can now reinvest into<br />

our care,” he says. “There’s a long list<br />

of things to buy and do and renew<br />

to stay on the cutting edge. I tell<br />

my team all the time that our fiduciary<br />

responsibility as a supply chain is that<br />

we’re a services organisation. We have<br />

service level agreements that we have<br />

to not only achieve but exceed! I come 123<br />

EXECUTIVE PROFILE<br />

Michael Prokopis,<br />

Vice President of Supply Chain<br />

A leader with a uniquely business-minded<br />

approach to healthcare, Michael Prokopis is<br />

the Vice President of Supply Chain at Steward<br />

Health Care. Overseeing the $1.5 Billion supply<br />

chain capabilities of more than 30 hospitals<br />

comes naturally to an executive with more<br />

than twenty years’ worth of experience in<br />

strategy, planning, and optimization. Michael<br />

has master’s degrees from MIT and Dartmouth<br />

and lives in Dallas, TX.<br />

www.businesschief.com


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“It’s important to pick<br />

strategic partners<br />

with whom you go<br />

through the process<br />

of demand planning<br />

up to five years in<br />

advance and you’re<br />

sharing information<br />

so that both of you<br />

can improve the<br />

supply chain”<br />

—<br />

Michael Prokopis,<br />

Vice President of Supply Chain<br />

at Steward Health Care<br />

from a different mindset than traditional<br />

healthcare and provide an outside<br />

perspective on what I think a supply<br />

chain should look like. I tell my boss<br />

all the time that we don’t need to<br />

reinvent the supply chain…we just<br />

need to correctly implement. It’s<br />

important to pick strategic partners<br />

with whom you go through the process<br />

of demand planning up to five years in<br />

advance and you’re sharing information<br />

so that both of you can improve<br />

the supply chain; that is what happens<br />

in other industries with just<br />

as much unpredictability.”<br />

With the importance of establishing<br />

and maintaining successful partnerships<br />

vital to all businesses’ success,<br />

Steward Health Care utilises a variety<br />

of tools to help analyse a range<br />

of different data in order to predict<br />

patient volume to allow staff to be<br />

treated accordingly. Prokopis explains<br />

what he looks for when seeking<br />

to formulate a successful strategic<br />

relationship. “At the end of the day,<br />

a good partner is the one that says,<br />

‘If we do this or if we try that, we have<br />

the opportunity to move this KPI<br />

or metric’. We’re always looking<br />

for ‘strategic’ partners; we hope<br />

someone’s going to come to us and<br />

say, ‘Here’s some ideas that we haven’t<br />

implemented or maybe you haven’t<br />

contemplated. Let’s see if we can<br />

figure out how to do this together’.<br />

Those are the kinds of things that<br />

are extremely important to do. To me,<br />

a partner is someone who really wants<br />

to work with you, that generates new<br />

ways of doing things and thinks outside<br />

the box to see if we can approach the<br />

problem from a different perspective.”<br />

125<br />

www.businesschief.com


STEWARD HEALTH CARE<br />

126<br />

AUGUST <strong>2019</strong>


23,000+<br />

Employees<br />

worldwide<br />

2010<br />

Year founded<br />

38<br />

Hospitals in the US<br />

and Malta<br />

127<br />

www.businesschief.com


STEWARD HEALTH CARE


“To me, a partner<br />

is someone who<br />

really wants to<br />

work with you, that<br />

generates new<br />

ways of doing<br />

things and thinks<br />

outside the box”<br />

—<br />

Michael Prokopis,<br />

Vice President of Supply Chain<br />

at Steward Health Care<br />

Looking to the future, Prokopis has<br />

a clear vision of how his company can<br />

continue to grow over the next few<br />

years. He believes the key to future<br />

success is to constantly monitor<br />

the supply chain. “We’ve just opened<br />

two facilities in April. One was an<br />

acquisition and the other was a facility<br />

that had been shut down that we<br />

reopened the doors for,” he notes.<br />

“At the end of the day, you take the<br />

supply chain that you’re developing<br />

and look for an opportunity to firstly<br />

convert a hospital that was doing<br />

things differently, and secondly<br />

provide an opportunity where<br />

you’re literally starting from scratch.<br />

You have to ask yourself how you make<br />

sure that when the first patient walks<br />

in the door, they’re going to get exactly<br />

what they need in the time that they<br />

need it in. That’s the key.”<br />

129<br />

www.businesschief.com


130<br />

+<br />

Procurement<br />

goes global<br />

at Dentsu Aegis<br />

Network<br />

WRITTEN<br />

BY<br />

DAN BRIGHTMORE<br />

PRODUCED BY<br />

DENITRA PRICE<br />

AUGUST <strong>2019</strong>


131<br />

=<br />

www.businesschief.com


DENTSU AEGIS NETWORK<br />

Dentsu Aegis Network is tackling<br />

the need for a centralized<br />

procurement function to meet the<br />

demands of a strategy targeting<br />

growth through acquisition<br />

132<br />

T<br />

he Dentsu Aegis Network is the first<br />

global marketing services group built<br />

for the digital economy; designed around<br />

the needs of its customers with the goal of driving<br />

sustainable business growth for their brands and<br />

business. Growth through acquisitions (such as<br />

Merkle), aligned with organic development, is key<br />

to the company’s own strategy. To keep pace with<br />

that growth it became essential for Dentsu Aegis<br />

to create a centralized procurement team in each<br />

of its regions of operation.<br />

Sabrina Traskos, Senior Vice President, Procurement,<br />

heads up the organization’s American<br />

Procurement Team. “My team is responsible for<br />

the entire spectrum of procurement activities, from<br />

strategic sourcing all the way through to issuing<br />

POs and ensuring invoices are correct; as well<br />

as looking after real estate and facilities on a day<br />

to day basis,” she says. “The focus of what we’re<br />

doing is supporting the entire network throughout<br />

the procurement lifecycle.”<br />

The challenge for Traskos and her team is to build<br />

out a centralized function while assisting the<br />

brands across the Dentsu Aegis Network with their<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

133


DENTSU AEGIS NETWORK<br />

134<br />

EXECUTIVE PROFILE<br />

Sabrina Traskos, Senior Vice President, Procurement<br />

Traskos is a proven team leader with extensive international<br />

experience in contract negotiations, strategic partnerships, OEM<br />

and licensing deals. Her procurement and project management<br />

responsibilities deliver a significant impact to a company’s bottom<br />

line. As a former Senior Director at GPO Broadlane she<br />

managed strategic sourcing on behalf of healthcare<br />

providers... “Learning how to talk about requirements<br />

in an unbiased way and gain consensus and buy-in<br />

from the different organizations was a great<br />

experience which prepared me for working with 32<br />

different brands across the Dentsu Aegis network.”<br />

At Dentsu Aegis she manages the integration of<br />

new tech initiatives, adding value and efficiencies<br />

to its supply chain management while pushing<br />

forward with the firm’s sustainability goals.<br />

AUGUST <strong>2019</strong>


“Cisco is helping us<br />

move the employee<br />

base into as few<br />

facilities as possible”<br />

—<br />

Sabrina Traskos,<br />

Senior Vice President, Procurement, Dentsu Aegis Network<br />

procurement transformation. “We<br />

have 32 business units in the United<br />

States so we’re getting 32 different<br />

constituencies on board with our<br />

Source-to-Pay process,” explains<br />

Traskos. “For some of them, it’s the<br />

first time they’re doing a purchase<br />

order, so a solid communications<br />

plan is an absolute necessity for us.<br />

It doesn’t stop when we sign the<br />

contract with the supplier and get<br />

them loaded into the Source-to-Pay<br />

system. We have to make sure all of<br />

the relevant stakeholders know who<br />

our suppliers are, what the process<br />

is and what the transition plan is to<br />

switch to newly selected suppliers.”<br />

Consensus building is integral to<br />

improving efficiency. “We aim to give<br />

people a say in the design of the<br />

processes and choosing the vendors,”<br />

pledges Traskos. “After all, they’re the<br />

subject matter experts who know what<br />

they need best.” The next step to<br />

tackle is integrating the right technology.<br />

“When we win a new client, we<br />

often have to get up and running very<br />

quickly. Procurement needs to support<br />

whatever they need – it could be<br />

research, technology or recruiting, for<br />

example – with very quick turnaround,”<br />

explains Traskos. “But this can lead to<br />

wildly different approaches across the<br />

network which could present a data<br />

135<br />

www.businesschief.com


SMART CHANGE STARTS HERE.<br />

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Canon Solutions America provides world-class products<br />

and services that enable you to collaborate in real time,<br />

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Canon is a registered trademark of Canon Inc. in the United States and elsewhere. All other referenced<br />

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integrity issue. Procurement has a<br />

central role in harmonizing the process<br />

and making sure the purchasing data<br />

stays consistent.”<br />

The pathway to the successful<br />

integration of new brands into Dentsu<br />

Aegis’ processes is aided by a<br />

governance structure. “Steering<br />

committees are at the heart of this,”<br />

says Traskos. “We have representatives<br />

from each of the business units<br />

and we meet regularly to discuss<br />

procurement projects, potential<br />

savings and to analyze any disruptive<br />

technologies.” She believes it’s vital<br />

to build a community approach to<br />

change while providing the opportunity<br />

to learn from your peers.<br />

To support positive disruption, what<br />

innovations is Dentsu Aegis embracing<br />

on its procurement transformation<br />

quest? Traskos is excited about the<br />

advent of Source-to-Pay across<br />

Dentsu Aegis Network. “Previously,<br />

it’s been a bit of a journey just to get<br />

aggregated spend or figure out how<br />

much we spend in a particular category<br />

or with different suppliers. Source-to-<br />

Pay’s spend analytics is going to help<br />

the team leapfrog to another level<br />

where we can provide our internal<br />

clients with recommendations and<br />

137<br />

CLICK TO WATCH: ‘SUSTAINABLE PROCUREMENT AT DENTSU US’<br />

www.businesschief.com


DENTSU AEGIS NETWORK<br />

138<br />

opportunities to save, build partnerships<br />

where appropriate, and really<br />

improve overall vendor management<br />

and relationships.” She believes<br />

building an ecosystem will improve<br />

user experience and bring through<br />

more initiatives to enhance efficiencies<br />

and savings.<br />

Currently, Dentsu Aegis is keenly<br />

focused on the benefits of automation.<br />

Dentsu’s Automation Team works with<br />

Catalytic and UI Path on robotics and<br />

RPA (Robotic Process Automation) to<br />

aid the transition from paper to digital.<br />

“We’ve been able to achieve some<br />

significant savings in terms of reducing<br />

the amount of time staff spend on basic<br />

tasks,” says Traskos. “This enables us<br />

to shift our employees’ time to work on<br />

more strategic functions and that<br />

benefits our clients. The success of the<br />

efforts to date allow us to roll out more<br />

automation of other processes.”<br />

As Dentsu has grown through<br />

acquisition, its real estate portfolio has<br />

grown as well. Now, the company<br />

seeks to work on real estate consolidation<br />

in order to reduce the overall costs<br />

of running so many offices. For Traskos<br />

alongside Chris Bendowski, VP of Real<br />

Estate and Facilities, to achieve this<br />

AUGUST <strong>2019</strong>


2013<br />

Year founded<br />

35,000+<br />

Approximate number<br />

of employees<br />

1,000<br />

Clients<br />

50%<br />

Revenue driven<br />

by digital<br />

without disruption, partnerships with<br />

the likes of Canon Solutions America<br />

are key. Canon, the leading camera<br />

and print solutions business, a leading<br />

imaging technology and managed<br />

services company, is providing office<br />

services to ensure robust support for<br />

the smooth running of office functions<br />

for all employees. “Canon Solutions<br />

America supports us with everything<br />

from traditional printers to reception<br />

and event services. We have about a<br />

hundred offices in the US alone, with<br />

as many as seven in some cities,” adds<br />

says Traskos. “Canon Solutions<br />

America is our essential partner in<br />

providing the staffing to support these<br />

offices with the highest level of service<br />

to the organization,” adds Chris<br />

Bendowski. “As we renovate office<br />

space and design offices more<br />

conducive to collaboration, we need<br />

network and WiFi support to create a<br />

stable and high performing environment<br />

in the workplace. Cisco solutions<br />

help us achieve that with a high level of<br />

confidence while achieving savings.”<br />

Cisco are also involved with a project<br />

to install POE (Power Over Ethernet)<br />

lighting to provide energy savings<br />

across the organization. “The beautiful<br />

139<br />

www.businesschief.com


DENTSU AEGIS NETWORK<br />

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AUGUST <strong>2019</strong><br />

PRESIDIO.COM


thing about POE is the ability to collect<br />

data from all your devices and look at<br />

room utilization, who is using the room<br />

and the capabilities that come along<br />

with that. For example, you can adjust<br />

the temperature of a conference suite<br />

according to the number of occupants.<br />

Big Data is helping us drive efficiencies<br />

here, and offer a customized experience<br />

for our employees.”<br />

Looking at trends across the procurement<br />

panorama, Traskos is enthused<br />

by the way data accessible via user<br />

friendly dashboards is enabling category<br />

managers like Sultan Bajwa to make<br />

quick decisions on her team, both on<br />

a tactical and strategic basis. “All of the<br />

data provided via IoT sensors can lead<br />

us towards greater savings. For example,<br />

the ability to look at energy consumption<br />

by floor helps us streamline processes<br />

and become more cost efficient.”<br />

Sustainable procurement is a top<br />

priority for Dentsu Aegis Network in<br />

<strong>2019</strong> and beyond. “We’re getting the<br />

message out there to make sure our<br />

suppliers understand how important<br />

it is,” confirms Traskos. “Source-to-Pay<br />

can help us set up the initial relationship.<br />

From the initial RFP, a supplier will see<br />

Dentsu’s statement on sustainable<br />

procurement, they see how much of<br />

the scoring is based on them having<br />

a verifiable sustainable procurement<br />

141<br />

www.businesschief.com


DENTSU AEGIS NETWORK<br />

“Source-to-Pay’s spend<br />

analytics is going to help<br />

the team leapfrog to another<br />

level where we can provide<br />

our internal client base<br />

with recommendations<br />

and opportunities to save”<br />

142<br />

—<br />

Sabrina Traskos,<br />

Senior Vice President, Procurement, Dentsu Aegis Network<br />

program within their organization, and<br />

how they should align with the UN<br />

SDGs (United Nations Sustainable<br />

Development Goals). Once they<br />

become a supplier, we communicate<br />

on how our sustainability program is<br />

progressing, and more specifics on<br />

what we require within the various<br />

categories. The communication must<br />

occur on a regular basis to build a<br />

community in tune with our objectives<br />

and further the SDGs.”<br />

While Traskos notes that all procurement<br />

organizations are focused on<br />

savings targets, continuous monitoring<br />

via data now allows for a more nuanced<br />

approach able to identify areas for<br />

acceleration to meet the organization’s<br />

goals. “Our center of excellence, led<br />

by Alex Love, pays really close attention<br />

to savings and trying to help different<br />

business units achieve their objectives,”<br />

she maintains. “Source-to-Pay will<br />

provide a big lift for us but we don’t<br />

want to underestimate the change<br />

management that’s involved.”<br />

AUGUST <strong>2019</strong>


143<br />

Allied to its financial and sustainability<br />

goals for procurement, Traskos is keen<br />

to encourage communication across the<br />

business around reducing its carbon<br />

footprint. “For travel and expenses, how<br />

do we partner with IT so that we can<br />

leverage Microsoft Teams to its full<br />

potential? What else can we do to<br />

partner with different airlines and<br />

reduce our carbon footprint? What can<br />

we do with S2P in terms of making sure<br />

that the SDGs are being pushed out<br />

to our different supplier partners?<br />

Not only are we making it 15% of our<br />

scoring, to determine who to partner<br />

with and who has made this a priority,<br />

but we’re trying to make this more<br />

visible by building a communication<br />

strategy around it. Not just for within<br />

www.businesschief.com


144<br />

Creating value<br />

and sustainability<br />

through technology<br />

in the Armacell<br />

supply chain<br />

WRITTEN BY<br />

HARRY MENEAR<br />

PRODUCED BY<br />

DENITRA PRICE<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

145


ARMACELL<br />

Amber Jesic, General Manager,<br />

Supply Chain, Americas at Armacell<br />

discusses using technology to<br />

pursue best sustainable practice<br />

in the company’s supply chain<br />

146<br />

T<br />

he global perception of the supply chain<br />

has undergone a revolution over the past<br />

decade. What was once a series of<br />

independent nodes in a scattered network<br />

of buyers and suppliers conducting transactional<br />

deals has transformed into something far more<br />

delicate, complex and effective. “Organizations<br />

are becoming more sophisticated in the supply<br />

chain space. As they become better at supply<br />

chain and inventory management, they’re becoming<br />

more aware of the opportunities associated with<br />

the supply chain becoming more interdependent<br />

and approached from an end-to-end perspective,”<br />

says Amber Jesic, General Manager, Supply<br />

Chain, Americas at Armacell. “The increasing<br />

availability of real-time reporting and visibility,<br />

as well as increasing customer expectations,<br />

has certainly caused supply chains to evolve in<br />

recent years.” As the global supply chain industry<br />

changes, this newfound maturity opens up<br />

avenues for companies to fulfil ambitions and<br />

live up to core values in new ways.<br />

AUGUST <strong>2019</strong>


147<br />

Production lines in Mebane, NC<br />

Armacell manufactures structural PET panels<br />

in Brampton, Ontario, Canada.<br />

www.businesschief.com


ARMACELL<br />

148<br />

As a global leader in the insulation<br />

market, Armacell’s products are vital<br />

to making projects in the construction<br />

and manufacturing space more energyefficient,<br />

and therefore sustainable.<br />

For Jesic, her role at Armacell was the<br />

perfect fit. “Sustainability is not only<br />

personally important to me, but it’s<br />

also the basis of how Armacell<br />

operates,” she says. “The company<br />

has a culture of global collaboration<br />

and innovation that was appealing and<br />

they’re also open to change. I saw the<br />

role as a chance to make contributions<br />

to the organization, and an opportunity<br />

“Sustainability<br />

is not only<br />

personally<br />

important to<br />

me, but also<br />

the basis of<br />

how Armacell<br />

operates”<br />

—<br />

Amber Jesic,<br />

General Manager, Supply Chain,<br />

Americas, Armacell<br />

Elastomeric foam sheets and rolls are stored before shipping<br />

out of Armacell’s component foam plant in Conover, NC<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘MAKING A DIFFERENCE AROUND THE WORLD’<br />

149<br />

to leverage our holistic network and<br />

supply chain to drive competitive<br />

advantage and drive efficiencies.<br />

A lot of our products drive sustainability.<br />

Our ArmaFlex closed cell foam<br />

insulation saves 140 times more<br />

energy over the course of its life than<br />

needed to manufacture and transport<br />

it.” We spoke to Jesic about the ways<br />

in which Armacell is harnessing<br />

cutting-edge technology in order to<br />

drive supply chain innovation, not<br />

only to create value, but make the<br />

company more sustainable.<br />

Although Armacell itself was<br />

officially incorporated in 2000, its<br />

origins can be traced back to the<br />

1860s and Armstrong World Industries.<br />

In 1954, Armstrong was responsible<br />

for the invention of ArmaFlex, the<br />

world’s first flexible insulation product,<br />

carving out its own industry niche<br />

that it has dominated ever since.<br />

In addition to making flexible products,<br />

Armacell is committed to ensuring that,<br />

as a company, it stands by its principles<br />

of sustainability. “As a multi-materials<br />

and multi-product company, we apply<br />

world-class practices every day<br />

and expand into adjacent technical<br />

www.businesschief.com


ARMACELL<br />

150<br />

“Technology<br />

provides an<br />

opportunity to<br />

simultaneously<br />

reduce costs<br />

and improve<br />

service”<br />

—<br />

Amber Jesic,<br />

General Manager, Supply Chain,<br />

Americas, Armacell<br />

insulation end markets, continuously<br />

extending our temperature range<br />

and equipment verticals,” Jesic says.<br />

“We substitute the legacy materials<br />

of our competition with our innovative<br />

solutions and reinforce our premium<br />

brand position to create value for<br />

equipment owners, specifier engineers,<br />

contractors and investors.”<br />

Jesic’s role provides a broad mandate<br />

and list of responsibilities, as she<br />

oversees purchasing, planning, distribution,<br />

transportation and compliance.<br />

She and her team are working to deploy<br />

sustainable technology and strategies<br />

across Armacell’s supply chain, from<br />

converting the company’s shipping<br />

lines to an intermodal approach and<br />

reducing miles travelled, to recycling<br />

over one billion plastic bottles into<br />

polyethylene terephthalate (PET)<br />

products. “Beyond the benefits we<br />

seek to realize through technology,<br />

we also are committed to best practices<br />

that impact the environment. To reduce<br />

waste, we have cases where we also<br />

donate our scrap to prevent it from<br />

going into landfills,” says Jesic. “It can<br />

AUGUST <strong>2019</strong>


e used in the carpet industry as<br />

a padded base for installations,<br />

sometimes it’s used for the foam<br />

padding in children’s playgrounds –<br />

the breadth of application is mindboggling<br />

sometimes, given all the<br />

different areas you can use foam.”<br />

The core of the company’s innovations<br />

and sustainability initiatives<br />

involve applying technology to create<br />

value in a sustainable way. “Technology<br />

provides an opportunity to simultaneously<br />

reduce costs and improve<br />

service. We’re driving automation<br />

wherever possible and easing the 151<br />

EXECUTIVE PROFILE<br />

Amber Jesic, General Manager<br />

Amber Jesic is the General Manager of Supply Chain,<br />

Americas, at Armacell. Jesic’s innovative and analytical<br />

approaches have redefined and optimized the value of<br />

supply chains within select Fortune 500 companies.<br />

A key strategist with an award-winning career in supply<br />

chain management, she has proven that with ingenuity,<br />

solutions to complex issues can be developed.<br />

She is a thought leader, having led an autonomous<br />

truck program as featured in the New York Times.<br />

Amber holds a Six Sigma Black Belt and an MBA from<br />

NYU Stern School of <strong>Business</strong>.<br />

www.businesschief.com


ARMACELL<br />

$686mn<br />

Approximate<br />

revenue<br />

2000<br />

Year founded<br />

152<br />

3,000<br />

Approximate number<br />

of employees<br />

AUGUST <strong>2019</strong>


153<br />

Armacell makes foam for gaskets for<br />

use in the aerospace industry.<br />

www.businesschief.com


ARMACELL<br />

Armacell makes foam for gaskets for use in<br />

the transportation industry.<br />

CONTRIBUTING TO THE EARTH’S FUTURE<br />

WORKING HAND IN HAND WITH OUR CUSTOMERS<br />

Congratulations Armacell on your fine article!<br />

THE WORLD’S LARGEST<br />

PVC PRODUCER & RIGID<br />

VINYL COMPOUNDER<br />

Resin Sales – Domestic & Export 713 965 0713<br />

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process of doing business with<br />

Armacell, predominantly through EDI<br />

integration, but also through our<br />

digitalization efforts regarding load<br />

planning and shipment consolidation<br />

to reduce miles travelled and condense<br />

shipments,” Jesic explains.<br />

As a company that has never been<br />

afraid to carve its own way using the<br />

latest technological developments on<br />

offer, Jesic points out that Armacell is<br />

watching the development and testing<br />

of autonomous freight vehicles with<br />

great interest. “They can definitely<br />

drive sustainability benefits,” she says.<br />

“Beyond the<br />

benefits we seek<br />

to realize through<br />

technology, we also<br />

are committed<br />

to best practices<br />

that impact the<br />

environment”<br />

—<br />

Amber Jesic,<br />

General Manager, Supply Chain,<br />

Americas, Armacell<br />

155<br />

PARTNER FACTS<br />

Shintech<br />

The modern supply chain is becoming more collaborative and<br />

interconnected. As Jesic notes, “multifaceted partnerships are<br />

much more common. We work with our suppliers to develop<br />

mutually beneficial plans for the management, inventory<br />

management as well as delivery.” Founded in 1974, Shintech has<br />

grown to become a leader in its field in much the same way as<br />

Armacell. It is currently the largest producer of PVC in the US and<br />

has been partnered with Armacell for more than five years. “Their<br />

consistent service has been an asset to our business,” says Jesic.<br />

www.businesschief.com


ARMACELL<br />

156<br />

“Autonomous trucks will let you better<br />

handle fuel usage, there’s less starting<br />

and stopping, you can have a bigger<br />

fuel tank without a driver, and of<br />

course an autonomous truck will be<br />

able to provide much more accurate<br />

track and trace capabilities.”<br />

Gathering data from a fleet of<br />

autonomous trucks may be years<br />

away for Armacell, but Jesic stresses<br />

how vital data from other sources has<br />

become for the company today, and<br />

the importance of having the analytics<br />

to draw actionable insights. “We’re in<br />

the design and development phase<br />

of using forecasting tools that will<br />

provide predictive analytics which will<br />

be used in our production planning<br />

and inventory management to better<br />

service our customers,” she explains.<br />

As the leader in the $13.5bn<br />

equipment insulation market, Armacell<br />

is constantly striving to pursue its<br />

multi-pillar growth strategy. Its<br />

dedicated R&D teams are continually<br />

driving the company’s portfolio growth<br />

of intellectual property, having more<br />

than doubled the number of patents in<br />

the company’s name over the past five<br />

years. Looking to the future, Jesic is<br />

AUGUST <strong>2019</strong>


excited to continue bringing Armacell’s<br />

open, innovative approach to the<br />

workings of its supply chain and<br />

management of her team. “I encourage<br />

a culture of openness to change and<br />

present things in a perspective that<br />

highlights the benefits of why that<br />

change is being introduced. So, in the<br />

instance of digitalization, if it improves<br />

the ease of doing business with<br />

Armacell, our suppliers and customers<br />

then I’ll emphasize those benefits to<br />

the teams so they understand why<br />

we’re pursuing these changes. Also,<br />

benefits like automated reporting help<br />

keep our focus on best, not budget,”<br />

she concludes. Armacell’s future is<br />

bright, as it continues to work towards<br />

creating not only value, but a bright<br />

future for the planet too.<br />

157<br />

www.businesschief.com


158<br />

The University<br />

of Alabama<br />

at Birmingham<br />

celebrates its<br />

immense digital<br />

transformation<br />

WRITTEN BY<br />

AMBER DONOVAN-STEVENS<br />

PRODUCED BY<br />

CRAIG DANIELS<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

159


UNIVERSITY OF ALABAMA AT BIRMINGHAM<br />

In an exclusive interview<br />

with Vice President and CIO,<br />

Dr. Curt Carver Jr., he shares<br />

the hundreds of ‘wins’<br />

achieved in streamlining<br />

the university experience<br />

160<br />

E<br />

mpowering greatness in others is at<br />

the heart of every technical solution the<br />

University of Alabama at Birmingham<br />

(UAB) has made, and this could not be more evident<br />

from the technology transformation that has taken<br />

place over the past four years under the leadership<br />

of Dr. Curt Carver. It is no surprise that the University<br />

of Alabama at Birmingham was keen to enlist<br />

Carver to spearhead IT operations with his<br />

impressive career history and dedication to student<br />

and staff wellbeing. Carver previously worked as<br />

the Vice Chancellor for Information Technology and<br />

CIO at the University System of Georgia. Prior to<br />

that, during his time at the US Military Academy<br />

at West Point, he rose through the academic ranks<br />

from instructor to full professor, before becoming<br />

Vice Dean, serving as deputy to the <strong>Chief</strong> Academic<br />

Officer. Whilst in this role, Carver also participated<br />

as an American Council of Education fellow at<br />

George Mason University, visiting 40 other universities<br />

across the United States, gaining a holistic view<br />

of task management across various universities.<br />

AUGUST <strong>2019</strong>


$3.4bn<br />

Approximate<br />

revenue (2018)<br />

1969<br />

Year founded<br />

23,000<br />

Approximate number<br />

of employees<br />

161<br />

www.businesschief.com


UNIVERSITY OF ALABAMA AT BIRMINGHAM<br />

162<br />

“When I started<br />

in 2015, it took<br />

us about 800<br />

minutes to close<br />

out a phishing<br />

attack. Today<br />

we do it in 11”<br />

—<br />

Dr Curtis Carver,<br />

Vice President and <strong>Chief</strong> Information Officer<br />

He has been with UAB since 2015<br />

and, under his leadership, the university<br />

has had over 420 ‘wins’. Carver defines<br />

a ‘win’ as a concern raised by the<br />

community, which is met with solutions<br />

that are validated as successful by staff<br />

and students, while in line with the<br />

strategic plan. Averaging around 100<br />

wins a year, Carver could not begin to<br />

list all of the achievements, but shared<br />

with us some from the 2017 and 2018<br />

reports. This year marks the university’s<br />

50th anniversary, which has seen the<br />

University of Alabama at Birmingham<br />

ranked number one amongst young<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘UAB. POWERED BY WILL’<br />

163<br />

universities (those under 50 years of age)<br />

in the United States and 11th in the world.<br />

“We are trying to empower greatness<br />

in our students, faculty, and researchers<br />

and clinicians,” explains Carver. “That<br />

means removing obstacles preventing<br />

them from accomplishing their research<br />

and teaching tasks, and trying to figure<br />

out mechanisms to co-author solutions<br />

to not only achieve their goals, but to<br />

create a competitive advantage for them<br />

compared to other universities.” Carver<br />

emphasizes the need to build strong<br />

partnerships with students to create<br />

solutions that do not only “comply or<br />

www.businesschief.com


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Catering to your students also means that institutions<br />

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UNIVERSITY OF ALABAMA AT BIRMINGHAM<br />

166<br />

satisfy, but delight their expectations.”<br />

“These are solutions that they feel that<br />

they are a part of,” he comments.<br />

Another motivation of the company’s<br />

technological transformation is the goal<br />

of easing the workload of both staff and<br />

students. “Some of the ways in which<br />

we have achieved this is by moving to<br />

unlimited email, creating passwords that<br />

don’t expire, and having unlimited storage,<br />

as well as creating the fastest networks<br />

and research computers in the state.<br />

When you’re working with genomics<br />

and personalized medicine, these small<br />

factors make a great deal of difference.”<br />

Carver cannot emphasize enough<br />

the importance of listening to a variety<br />

of people when devising a business<br />

strategy. “On my first day as CIO,<br />

we created a crowd-sourcing site,<br />

and we had some 800 meetings in the<br />

first 100 days. By creating a voice for<br />

everyone, you can work towards the<br />

best possible solution and provide<br />

each aspect of the university with<br />

its own competitive edge.” This level<br />

of communication enabled staff<br />

and students to be receptive to the<br />

technical changes, because they<br />

were solutions requested by them.<br />

For example, one goal was to<br />

leverage the faculty’s disciplinary<br />

expertise. “We can’t treat faculty as the<br />

most expensive typists on the planet,”<br />

AUGUST <strong>2019</strong>


jokes Carver. At the end of each term,<br />

staff are tasked with the movement<br />

of student records from the learning<br />

management system to the student<br />

information system. “So if you’re<br />

teaching 300 students, that’s about<br />

900 clicks to complete this task, taking<br />

hours. And if you make an error, the<br />

staff member then has three different<br />

permissions and five forms to complete<br />

to rectify the mistake,” explains Carver.<br />

“So we built a button, and all of the<br />

information is transported across<br />

EXECUTIVE PROFILE<br />

Curtis A. Carver Jr<br />

Curtis A. Carver Jr., Ph.D., was named Vice President for<br />

Information Technology and <strong>Chief</strong> Information Officer in<br />

June 2015, following a national search. A senior leader in<br />

higher education information technology, Carver came to<br />

UAB from his position as Vice Chancellor and CIO for the<br />

Board of Regents of the University System of Georgia,<br />

having previously held key leadership positions at the US<br />

Military Academy at West Point. Carver earned a bachelor’s<br />

degree in computer science from the US Military Academy<br />

at West Point and his Master’s Degree and Doctorate in<br />

computer science from Texas A&M University. Throughout<br />

his career, he has received numerous national and<br />

international honors and awards for military, teaching,<br />

and research excellence. Carver is a frequent keynote<br />

speaker and has published extensively.<br />

167<br />

www.businesschief.com


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169<br />

systems in about a second, eradicating<br />

the previously arduous process.<br />

“If we’re going to change the world,<br />

let’s be serious about changing the<br />

world, and that means empowering<br />

people and taking some of these<br />

bureaucratic tasks off their plate,”<br />

Carver continues, with reference to the<br />

university’s students. “When students<br />

were scheduling, they would go into<br />

the student information system and<br />

they would download the schedules<br />

into Excel, and they would try to build<br />

a schedule. So we worked with the<br />

registrar and enrollment management<br />

and deployed a tool where the students<br />

could input their desired classes,<br />

when they are working or when they<br />

would rather not be on campus, and it<br />

automatically builds multiple schedules<br />

for them, and they just pick the schedule<br />

they want.”<br />

Carver notes that part of the success<br />

of the strategy is to be a servant leader,<br />

and not a Napoleonic one. “It’s not<br />

about control. It’s about empowerment.”<br />

Carver believes that it is important to<br />

hire people smarter than himself, as<br />

it empowers employees, instilling within<br />

them a sense of responsibility to find<br />

www.businesschief.com


UNIVERSITY OF ALABAMA AT BIRMINGHAM<br />

“We are trying to empower<br />

greatness in our students,<br />

faculty, and researchers<br />

and clinicians”<br />

—<br />

Dr Curtis Carver,<br />

Vice President and <strong>Chief</strong> Information Officer<br />

170<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

171


a solution. He commends his team<br />

of staff, who are particularly committed<br />

to the improvement of cybersecurity.<br />

Carver reflects on how cybersecurity<br />

has improved: “When I started in 2015,<br />

it took us about 800 minutes to close<br />

out a phishing attack. Today we do it in<br />

11.” He returns to the topic of passwords,<br />

sharing another solution that was<br />

deployed. “We gave students and staff<br />

a mobile-enabled platform that tracks<br />

passwords and generates strong unique<br />

ones, strengthening security further.”<br />

Of the many wins, Carver said his<br />

favorite was the movement of 1,250<br />

undergraduate classes into the<br />

learning management system. “This<br />

cloud-based solution enabled students<br />

to push one button, and all of their<br />

undergraduate classes, all of the<br />

requirements then transfer into their<br />

mobile device calendar.” This is a<br />

drastic change from the previous<br />

organization where staff either handed<br />

out paper timetables or posted them<br />

on their own websites.<br />

Looking ahead, Carver notes some<br />

of the solutions that the university<br />

is currently piloting. “We’re working<br />

on building a navigation system that 173<br />

www.businesschief.com


UNIVERSITY OF ALABAMA AT BIRMINGHAM<br />

“If we’re going to<br />

change the world,<br />

let’s be serious about<br />

changing the world”<br />

174<br />

—<br />

Dr Curtis Carver,<br />

Vice President and <strong>Chief</strong> Information Officer<br />

AUGUST <strong>2019</strong>


automatically locates free parking<br />

space for students.” Carver and his<br />

team are working toward a new<br />

strategic plan that, in the true spirit<br />

of his ethos, is a compilation of stories<br />

about those who will benefit from the<br />

technology solutions. “This puts<br />

customers at the center of the<br />

conversation and it focuses on digital<br />

moments that delight them. So we’re<br />

very excited about the future and what<br />

we’re going to be able to do with this<br />

kind of customer centric approach.”<br />

In a time where technology and AI<br />

is considered to be detached if not<br />

impersonal, Carver is subverting this<br />

with his leadership, and using technology<br />

to improve the lives and relationships of<br />

staff and students. With any hope, his<br />

innovation will spread to other universities,<br />

with the University of Alabama at<br />

Birmingham leading the way.<br />

175<br />

www.businesschief.com


176<br />

Gateway<br />

First Bank:<br />

from lender<br />

to banker<br />

WRITTEN BY<br />

JOHN O’HANLON<br />

PRODUCED BY<br />

ANDY TURNER<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

177


GATEWAY FIRST BANK<br />

With a goal to grow its accounts<br />

and deposits nationwide, Gateway<br />

Mortgage Group is preparing<br />

in mid-<strong>2019</strong> to launch Gateway<br />

First Bank, its full-service, direct-toconsumer<br />

digital bank<br />

178<br />

B<br />

uying a home is a pivotal decision for<br />

anybody. Much more than a routine<br />

commercial transaction, it speaks to that<br />

person’s aspirations, hopes, and family identity.<br />

It was with this awareness, and a vision to help<br />

families and communities grow stronger through<br />

home ownership, that Kevin J Stitt, a career<br />

professional in the mortgage industry, started up<br />

Gateway Mortgage Group in 2000. By 2017, through<br />

some of the most challenging times for the housing<br />

market, Stitt had grown Gateway to become one<br />

of the largest privately held mortgage origination<br />

and servicing companies in America, employing<br />

more than 1,200 people at 160 branch offices.<br />

In November 2018, Kevin Stitt was elected<br />

Governor of the State of Oklahoma, but before he<br />

stepped aside from the position as CEO at Gateway<br />

he had been able to advance a long-held desire<br />

to move beyond the origination and servicing<br />

of mortgage loans and turn the company into<br />

a fully-fledged bank. Leveraging the expertise of<br />

Stephen Curry, a banker specializing in banking<br />

AUGUST <strong>2019</strong>


179<br />

“Increasingly we turn<br />

to technology to<br />

reduce the number<br />

of touchpoints and<br />

enhance the borrower<br />

experience”<br />

—<br />

Stephen Harpe,<br />

CIO, Gateway First Bank<br />

www.businesschief.com


GATEWAY FIRST BANK<br />

180<br />

“It used to take<br />

days, even weeks<br />

to get through<br />

an application<br />

process…<br />

but now on the<br />

mortgage side<br />

of the business<br />

we average less<br />

than 30 minutes”<br />

—<br />

Stephen Harpe,<br />

CIO, Gateway First Bank<br />

transitions who replaced Stitt as CEO<br />

in <strong>August</strong> 2018, Gateway acquired<br />

Farmers Exchange Bank to form<br />

Gateway First Bank which, with $1.2bn<br />

in assets and five banking centers in<br />

Northwest Oklahoma, emerged<br />

overnight as one of the largest banks in<br />

the State of Oklahoma by asset size,<br />

and one of the largest bank mortgage<br />

operations in the United States.<br />

The enabling technology team<br />

Growing the technology infrastructure<br />

to support the radical and<br />

highly-unusual transformation from<br />

a mortgage company into a bank is a<br />

process that has been ongoing since<br />

the appointment of Steven Harpe as<br />

CIO in 2013. Harpe had held senior<br />

leadership roles in IT for more than 20<br />

years. Back then, there wasn’t really<br />

a technology division in the present-day<br />

sense, he recalls: tech was seen as a<br />

black box, and the relationship with the<br />

rest of the business was an adversarial<br />

one. “We had to develop a managed<br />

services concept within the business,”<br />

Harpe explains.<br />

Digital enablement is now recognized<br />

as essential to all financial services,<br />

though the industry as a whole has<br />

been slow to acknowledge that.<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘THE GATEWAY EXPERIENCE’<br />

181<br />

This is a company built on service,<br />

and that has been the secret of its<br />

rapid growth to date. “As we continue<br />

to take on additional customers we<br />

also want to be able to effectively<br />

recruit the sales and corporate staff<br />

that will serve them. Attracting the best<br />

people means offering them the best<br />

products available through a top tier<br />

technology platform.” Harpe adds that<br />

it’s a mistake to suppose that millennials<br />

are the only group to embrace digital<br />

technology, citing his mother who,<br />

at 74, is inseparable from her iPad for<br />

communication, shopping and financial<br />

services too. “Financial services were<br />

late getting into this space but as we<br />

move forward it’s no longer millennial<br />

problems we are trying to solve.<br />

We are trying to solve problems for<br />

everybody and the digital platforms<br />

that we are building and integrating<br />

today can do that,” stated Harpe.<br />

Over recent years, mobile-friendly<br />

technology has penetrated all industries,<br />

with mortgage lending no exception,<br />

Harpe points out. “Increasingly we turn<br />

to technology to reduce the number of<br />

touchpoints and enhance the borrower<br />

experience by giving them an intuitive<br />

www.businesschief.com


GATEWAY FIRST BANK<br />

182<br />

one-touch technology platform.”<br />

Fintech has become a commodity,<br />

so his strategy has been to outsource<br />

the principal elements to the partners<br />

who do it best. “I want to spend our<br />

time on applications, enhancing digital<br />

experience, and making better use of<br />

data to understand how we can best<br />

deliver our mortgage and other<br />

financial services,” Harpe added. “We<br />

see ourselves as servants to everyone<br />

in this company, and I am proud to be<br />

able to say we quickly ditched the old<br />

backroom mindset and created a very<br />

dynamic, agile and digital forwardthinking<br />

group.”<br />

The IT organization Harpe leads<br />

now has around 40 people, all with<br />

a problem-solving mentality. “When we<br />

hire someone, we look well beyond<br />

IT knowledge and competence,” he<br />

comments. “We want people who will<br />

take ownership of their ideas, and have<br />

a sense of urgency about them; people<br />

who are excited to be here and keen<br />

to solve problems for the business.”<br />

AUGUST <strong>2019</strong>


FOUR KEY PLATFORMS<br />

On the front line of a lender’s relationship<br />

with its clients is the point of sale (POS)<br />

system. In a competitive environment,<br />

the speed and efficiency with which a<br />

loan application can be processed<br />

makes all the difference. The POS<br />

system Gateway selected was<br />

provided by Blend, a Silicon Valley<br />

software developer that now connects<br />

more than 15,000 banks and financial<br />

institutions to make routine checks. “It<br />

used to take days or even weeks to get<br />

through an application process, which<br />

was stressful for the applicant, but now<br />

on the mortgage side of the business<br />

we average less than 30 minutes,”<br />

stated Harpe. “We can automatically<br />

pull W2s, tax records and the like,<br />

ingest these files and use the Blend<br />

platform to digest the information and<br />

quickly get through the 1003 process.”<br />

The difference this makes to the<br />

customer experience is immense<br />

and it helps Gateway deliver its vision<br />

to realize the American Dream of<br />

homeownership. As Blend’s founder<br />

Nima Ghamsari has said, a large<br />

number of people don’t realize they<br />

qualify for home ownership until they<br />

183<br />

EXECUTIVE PROFILE<br />

Steven Harpe, CIO<br />

Harpe leads customers using a unique combination of business<br />

experience coupled with 30 years of technology background<br />

in large scale cloud computing operations and engineering<br />

management. He has engineered, implemented, and managed<br />

some of the world’s largest technology platforms with<br />

multifaceted business applications. In addition, he has led<br />

initiatives to digitize technologies based on aged architectures,<br />

including providing mobile platforms. Harpe is dedicated to<br />

enthusiastic and progressive leadership as a means of creating<br />

and nurturing a lifelong passion of developing people to<br />

achieve their goals. In April <strong>2019</strong> he was appointed to the<br />

Oklahoma Board of Corrections. Harpe is a keen drummer<br />

in his spare time, having backed a number of rock bands.<br />

www.businesschief.com


CLICK TO WATCH: ‘GATEWAY MORTGAGE GROUP - LINKSTEP’<br />

185<br />

go through this process. Not surprisingly,<br />

customer satisfaction and net<br />

promoter score (NPS) rates have<br />

soared. “Everything we’re doing is<br />

geared around the customer experience<br />

and we remove as much friction from<br />

that process as we can,” Harpe<br />

emphasizes. “Blend is going to be<br />

helping us with direct deposit for new<br />

deposit account creation as well.”<br />

After approval, the loan application<br />

moves into the loan origination process.<br />

The current loan origination software<br />

(LOS) provider Byte has served the<br />

company well but Gateway will be<br />

selecting a new partner in the summer<br />

of <strong>2019</strong>. Discussions are in hand with<br />

two industry-leading contenders.<br />

As the launch of Gateway First Bank<br />

approached it was clear it should move<br />

to the most sophisticated core banking<br />

system available. In January <strong>2019</strong>, it<br />

was announced that this partner would<br />

be FIS, a global leader in financial<br />

services technology with a focus on<br />

retail and institutional banking. “FIS is<br />

a global company, and it supports<br />

many of the leading direct-to-consumer<br />

banks in the market around the world,”<br />

says Harpe. “Its service will be hosted<br />

www.businesschief.com


GATEWAY FIRST BANK<br />

186<br />

on its own private cloud, in which it<br />

has invested massively, and it has<br />

deep experience and scale in digital<br />

banking.” The transition from the<br />

current Jack Henry banking system<br />

will take place in July <strong>2019</strong>.<br />

Loan servicing is the ongoing<br />

relationship between lender and client,<br />

and this relationship will be trusted to<br />

Sagent LoanServ, another partner with<br />

its own private cloud. Moving infrastructure<br />

from the data center into the<br />

cloud, whether private or public, has<br />

been an ongoing goal of the IT team,<br />

and has largely been achieved, with<br />

Blend hosted on AWS as well as both<br />

contenders for the LOS. “By the end of<br />

2020, we are going to be sitting in a<br />

very unique place. We are a mortgage<br />

company that became a bank – and<br />

that is exciting enough in itself – but by<br />

then we will have all of our core<br />

technology running our operations in<br />

our business wholly on the cloud, on<br />

some of the largest fintech platforms.”<br />

Such partners were selected because<br />

they are highly future-oriented<br />

organizations that look at themselves<br />

primarily as technology companies.<br />

This, says Harpe, drives their behavior<br />

and decision making.<br />

“Everything we’re<br />

doing is geared<br />

around the customer<br />

experience and we<br />

remove as much<br />

friction from that<br />

process as we can”<br />

—<br />

Stephen Harpe,<br />

CIO, Gateway First Bank<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

187


FIS is proud to have Gateway First Bank as a new strategic<br />

partner on the Horizon Core Platform.<br />

To learn more about FIS leading solutions and client success stories,<br />

visit www.fisglobal.com/now.


“When you implement<br />

new technology,<br />

new skill sets are<br />

required and new<br />

jobs get created”<br />

—<br />

Stephen Harpe,<br />

CIO, Gateway First Bank<br />

PLAYING THE BALL IN FRONT<br />

Most of Gateway’s growth up to this<br />

year’s bank acquisition and merger has<br />

been self-generated, so the new bank<br />

will be focusing on safeguarding its<br />

reputation as Harpe emphasizes. “Over<br />

the coming years, we will see mainly<br />

organic growth mixed with some<br />

acquisitions. But to use a baseball<br />

analogy, we are very much a ‘play the<br />

ball in front of you’ company – one<br />

thing at a time. The ball in front of us is<br />

the bank transition, the transfer of our<br />

core systems to FIS and choosing the<br />

right loan origination partner.”<br />

Digitizing the operations and<br />

leveraging 21st-Century technologies<br />

such as machine learning and automation<br />

will definitely not endanger jobs at<br />

Gateway, Harpe predicts. “We are, in<br />

fact, creating scale. When you implement<br />

new technology, new skill sets are<br />

required and new jobs get created.<br />

We are excited about those opportunities,<br />

and even more excited about what this<br />

is going to provide for our clients. If you<br />

are a mortgage or a banking customer<br />

(or hopefully both) you are going to be<br />

able to consume Gateway First Bank<br />

through a common set of digital<br />

experiences from a single platform.<br />

That is where we are headed.”<br />

The future of banking is omnichannel,<br />

and as such Gateway will try to achieve<br />

a full set of responsive, personalized<br />

digital services to its customers. For<br />

example, The Digital One Online<br />

Account Origination solution will allow<br />

customers to open and manage their<br />

accounts via mobile and laptop devices.<br />

“This is a foundational time for us,”<br />

enthuses Harpe. We are creating a<br />

brand new foundation so mobile<br />

banking, credit cards and personal<br />

finance will all be extendable through<br />

the APIs and digital services that we<br />

are building. Our customers will find it<br />

easy to find us and do business with us.”<br />

Gateway First Bank is a nationwide<br />

operator that was founded in the<br />

communities of Oklahoma. Its community<br />

189<br />

www.businesschief.com


GATEWAY FIRST BANK<br />

190<br />

“We are creating<br />

a brand new<br />

foundation…<br />

our customers<br />

will find it easy<br />

to find us and do<br />

business with us”<br />

—<br />

Stephen Harpe,<br />

CIO, Gateway First Bank<br />

AUGUST <strong>2019</strong>


spirit and commitment are a real<br />

differentiator for the company, Harpe<br />

insists – home ownership is all about<br />

aspiration, the family and a stable<br />

society, so the company that Kevin Stitt<br />

founded has always looked for ways to<br />

reach out. The projects it supports are<br />

numerous, but typified by the establishment<br />

and continuing support of a Christian<br />

school in Nigeria in 2009 as well as<br />

the Gateway Youth Ranch in Uganda<br />

which enhances the lives of disadvantaged<br />

young people in that country.<br />

Closer to home, Harpe picks out<br />

Pearl’s Hope, a Tulsa-based project<br />

and refuge that supports homeless<br />

women and their families and helps<br />

them get back on their feet. “Oftentimes<br />

they find themselves having to<br />

run from home without the most basic<br />

necessities of life: Gateway provides<br />

Pearl’s Hope with some of these<br />

essentials.” The compassion he clearly<br />

feels chimes in with the company’s<br />

ethos of helping hard-working people<br />

regardless of their current wealth.<br />

191<br />

www.businesschief.com


192<br />

Providing clients<br />

with a unique<br />

approach to digital<br />

transformation<br />

WRITTEN BY<br />

SOPHIE CHAPMAN<br />

PRODUCED BY<br />

CRAIG DANIELS<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

193


AVAYA<br />

As Avaya provides tailored services<br />

for its clients, the company’s Senior<br />

Director of Client Experience<br />

Innovation reveals how digital<br />

transformation is changing the<br />

telecommunications industry<br />

194<br />

A<br />

vaya is a software and services organization<br />

that has a long legacy in the telecommunications<br />

industry. Headquartered<br />

in California’s Santa Clara, in the heart of Silicon<br />

Valley, the business has evolved alongside the<br />

industry. “The evolution really came down to the<br />

mobile device – the smart phone becoming the<br />

entry point for communications across every<br />

platform,” explains Tim Gogal, Senior Director<br />

of Client Experience Innovation at Avaya.<br />

“Looking at it from a corporate perspective,<br />

not only do we have a very strong focus on evolving<br />

our customer strategies around the evolution<br />

of a multichannel or omnichannel approach<br />

to customer service, we also internally create<br />

and invent software that ties all those things<br />

together.” Gogal’s team has developed its strategy<br />

to optimize the transition from legacy telecommunications<br />

engineering skill sets to software developments<br />

that cater to clients’ needs.<br />

“I run a sales organization that focuses<br />

on evolving our clients’ customer service strategies.<br />

AUGUST <strong>2019</strong>


“Digital transformation is<br />

ultimately defining that<br />

there’s a larger imperative<br />

at play; it encompasses much<br />

more than just technology”<br />

—<br />

Tim Gogal,<br />

Senior Director of Client<br />

Experience Innovation, Avaya<br />

195<br />

www.businesschief.com


AVAYA<br />

196<br />

“The industry itself<br />

uniquely allows<br />

Avaya to position<br />

itself as an<br />

industry expert”<br />

—<br />

Tim Gogal,<br />

Senior Director of Client<br />

Experience Innovation, Avaya<br />

We’re moving away from simply<br />

focusing on contact centers<br />

and looking at a larger digital transformation<br />

imperative,” Gogal says.<br />

“We’re understanding how customers<br />

are communicating with brands and<br />

social media using crowd sourcing<br />

websites, and we’re addressing the<br />

larger understanding that customer<br />

service today, in a digital transformation<br />

mindset, is completely different<br />

than the industry as a whole.” Having<br />

previously worked as a contact center<br />

agent, Gogal realized there was a better<br />

way of doing business if organizations<br />

could align technologies with customer<br />

service strategies. Through his analysis<br />

of the strategy, Gogal earned his place<br />

as a global voice architect which led<br />

to him selling the technology that<br />

can transform businesses.<br />

With the proliferation of mobile<br />

devices, Avaya ensures it is offering<br />

the most advanced services whilst<br />

maintaining a tailored approach,<br />

enhancing efficiency and desirability<br />

in its communications component.<br />

“Digital transformation is ultimately<br />

defining that there’s a larger imperative<br />

at play; it encompasses much more<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘AVAYA THROUGH THE EYES OF OUR EMPLOYEES’<br />

197<br />

than just technology. It encompasses<br />

the importance of understanding<br />

who is at the other end of the communication<br />

channel – whether it’s a phone<br />

call, a chat or an SMS – and giving that<br />

particular individual the opportunity<br />

to communicate through the channel<br />

that’s most appropriate and most<br />

effective for them,” comments Gogal.<br />

“I have a team of software developers<br />

that focus on creating individual,<br />

customized and unique experiences<br />

on a case by case basis for each<br />

and every one of our clients.”<br />

Avaya’s omnichannel approach<br />

has enabled it to adapt to customers’<br />

needs. “We have the ability to integrate<br />

very seamlessly with virtually<br />

any enterprise application that’s<br />

available and bring the contextual data<br />

sets of those back-office applications<br />

into the overall client experience.<br />

We are uniquely positioned to provide<br />

our clients with a personalized service<br />

across virtually any media channel<br />

and that’s a fundamental game<br />

changer for us,” Gogal adds.<br />

“Avaya’s business lineage leads us<br />

back to the 1-800 patent. Having such<br />

a strong legacy in the communications<br />

www.businesschief.com


space, along with the customer service<br />

industry, uniquely allows Avaya to<br />

position itself as an industry expert,”<br />

says Gogal. As a business with a great<br />

understanding of the industry surrounding<br />

it, the firm uses its knowledge<br />

to stay on top of vertical trends. Avaya<br />

combines trends of the future with<br />

its end customer experience through<br />

two key areas — service design<br />

and driving business outcomes.<br />

Gogal will deploy a team of software<br />

developers and digital transformation<br />

strategists to build prototypes<br />

for the client leveraging service design<br />

practices focused on streamlined<br />

business process models. “We start<br />

the process by understanding explicitly<br />

what our end customers want from<br />

the brand from an experience perspective,”<br />

he notes. Following the initial<br />

stage, the business will conduct<br />

interviews to align with the executive<br />

level visions of the company. During<br />

the consulting process, the team will<br />

build the business model into<br />

a communication workflow that<br />

focuses on streamlining the experience. 199<br />

EXECUTIVE PROFILE<br />

Tim Gogal, Senior Director of Client<br />

Experience Innovation<br />

Tim Gogal built his career in the customer service<br />

industry. He’s an Entrepreneurial Leader, Strategic<br />

Thinker, Cultural Change Agent, with a passion<br />

for Anthropology, Ethnology, and Service Design<br />

Strategy with a focus on changing the landscape<br />

of business technology in today’s digitally disrupted<br />

world. His specialties include: Sales & Consulting,<br />

Corporate Management, Telecommunications<br />

(Voice) Architecture, <strong>Business</strong> Analytics,<br />

Customer Service Operations Management,<br />

Application Development.<br />

www.businesschief.com


AVAYA<br />

200<br />

AUGUST <strong>2019</strong>


201<br />

£3.27bn<br />

Approximate<br />

revenue in 2017<br />

2000<br />

Year founded<br />

8,100<br />

Approximate number<br />

of employees as of 2018<br />

www.businesschief.com


AVAYA<br />

202<br />

“We look at whether we have<br />

opportunities for deploying artificial<br />

intelligence (AI) via chat bots. We look<br />

at things such as IoT devices and how<br />

we can leverage them to build a better<br />

and more desirable experience.<br />

Are there IoT sensors that can be<br />

leveraged in this process depending<br />

upon each case-by-case basis?<br />

We look at whether or not blockchain<br />

is applicable as it relates to security<br />

needs. It is important to understand<br />

where our clients are today and what<br />

their end customers want, and what<br />

technologies are in play which can<br />

be leveraged to achieve a digitally<br />

transformed experience, with security<br />

in mind, of course.”<br />

As an example of the Client Experience<br />

Innovation team’s “Art of the<br />

Possible” mentality, the group developed<br />

a prototype last year that<br />

incorporated the customer service<br />

agent and the residential establishment<br />

– working with technologies such<br />

as Google Home and Amazon Alexa.<br />

To show how the client experience<br />

is evolving, and how uniquely posi-<br />

AUGUST <strong>2019</strong>


“It’s a delicate balance<br />

of understanding high<br />

level trends but also<br />

targeting the minutia<br />

of customers’ business<br />

issues and overall<br />

expectations, and how<br />

we solve for them”<br />

—<br />

Tim Gogal,<br />

Senior Director of Client<br />

Experience Innovation, Avaya<br />

tioned Avaya’s open architecture really<br />

is, they wanted to show how they<br />

can enable its clients to book trips<br />

via voice command. “The idea is in<br />

creating that use case of booking a trip,<br />

selecting your flight itinerary, your hotel<br />

capability, and capturing all those<br />

attributes through the in-home AI<br />

platform. Then, if there’s a need for<br />

a conversation, it can be escalated<br />

to an agent or a customer service<br />

representative in a contact center<br />

who receives the appropriate data<br />

along with the contextual history<br />

of everything that took place within<br />

that AI platform,” Gogal explains.<br />

As Avaya continues to target each<br />

customer’s individual needs,<br />

the company looks forward to facing<br />

new and distinctive challenges<br />

on a case-by-case basis. “The focus<br />

is understanding what the uniqueness<br />

of each business process is and<br />

layering on the Avaya solutions<br />

as the communication fabric<br />

for making operations as seamless<br />

as possible,” says Gogal. “It’s a delicate<br />

balance of understanding high level<br />

trends but also targeting the minutia<br />

of customers’ business issues<br />

and overall expectations, and how<br />

we solve for them.” Whilst streamlining<br />

the operations of its customers<br />

by removing human latency, striking<br />

a parallel between technology<br />

adoption and personalization will<br />

continue to be a top priority to the firm.<br />

203<br />

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204<br />

AUGUST <strong>2019</strong>


205<br />

RiverStreet<br />

Networks:<br />

digital disruption<br />

to telecoms<br />

infrastructure<br />

WRITTEN BY<br />

SOPHIE CHAPMAN<br />

PRODUCED BY<br />

CRAIG DANIELS<br />

www.businesschief.com


RIVERSTREET NETWORKS<br />

As RiverStreet evolves<br />

with the changing telecom<br />

landscape, RiverStreet<br />

Networks’ CTO tells us<br />

about the company’s digital<br />

transformation journey<br />

206<br />

R<br />

iverStreet Networks was established<br />

in 1951 to create access to telephone<br />

services in rural North Carolina.<br />

The Communications Act of 1934 ensured that<br />

having access to a telephone is an inalienable right,<br />

leading to companies and cooperatives being<br />

subsidized to build telephone infrastructure.<br />

“Our mission at the time, although we didn’t know it,<br />

was to serve the unserved,” says Jody Call, the<br />

firm’s <strong>Chief</strong> Technology Officer (CTO). Until 2014,<br />

the company had around 10,000 customers. This<br />

changed when the government began reducing<br />

subsidies due to a lack of access lines as a result<br />

of the proliferation of mobile devices. “We had a lot of<br />

attrition of our access lines and our company was<br />

growing as more of a broadband provider. We had<br />

overbuilt our entire network in our cooperative<br />

footprint of about 10,000 customers with gigabit<br />

fiber to the home, and we had pretty much captured<br />

the market here – so we started expanding<br />

outside of the county,” he adds.<br />

AUGUST <strong>2019</strong>


207<br />

“Our mission<br />

at the time,<br />

although we<br />

didn’t know it,<br />

was to serve<br />

the un-served”<br />

—<br />

Jody Call,<br />

<strong>Chief</strong> Technology Officer,<br />

RiverStreet Networks<br />

www.businesschief.com


RIVERSTREET NETWORKS<br />

208<br />

“We’ve had to<br />

disrupt our own<br />

internal processes<br />

and ways of<br />

thinking and to<br />

accommodate<br />

and embrace new<br />

technologies”<br />

—<br />

Jody Call,<br />

<strong>Chief</strong> Technology Officer,<br />

RiverStreet Networks<br />

Under its expansion strategy,<br />

RiverStreet has acquired and merged<br />

with other businesses in the state of<br />

Wilkes County, North Carolina. The<br />

company anticipates that its customer<br />

and account rate will reach 35,000<br />

by the end of this year, following the<br />

completion of further deals, with<br />

25,000 of those customers connecting<br />

to broadband. “The paradigm shift in<br />

the industry is to provide broadband<br />

in the unserved and under-served<br />

areas and to address the digital divide<br />

– we’re looking at that through several<br />

different ways of infrastructure,” says<br />

Call. RiverStreet upgrades fiber to<br />

home, DSL networks, RF cables and<br />

traditional cable television, and is<br />

looking into fixed wireless options.<br />

Part of RiverStreet’s continual<br />

transformation includes regularly<br />

evaluating each incumbent vendor<br />

relationship and their respective<br />

product roadmaps. These relationships<br />

and roadmaps have to be aligned with<br />

the firm’s current and future plans as<br />

they change – technologies change,<br />

customer needs change, and cost is<br />

always an underlying factor. Avoiding<br />

getting too comfortable in any vendor<br />

relationship is paramount in how<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘RIVERSTREET NETWORKS: DRONE COMPILATION’<br />

209<br />

RiverStreet’s Operations group stays<br />

focused on addressing customer<br />

needs and continuing to serve more<br />

of the unserved popluation. Recently,<br />

as part of this evolving mindset, the<br />

company partnered with Sacramentobased<br />

MobiTV to complement and<br />

eventually replace its existing IPTV<br />

deployment with an OTT (over-the-top)<br />

TV package that closely resembles<br />

RiverStreet’s legacy IPTV offering.<br />

This OTT technology allows the firm’s<br />

customers the option of watching<br />

TV as they previously had in a linear<br />

fashion while adding the option of<br />

a single screen to watch OTT, appbased<br />

content. The look and feel of<br />

traditional TV are merged with current,<br />

app-based, OTT streaming. This<br />

product is poised to perform well in<br />

RiverStreet’s continued growth across<br />

their diverse markets.<br />

As the business has evolved with<br />

the environment surrounding it, digital<br />

disruption has been at the heart of its<br />

operations. “Typically, a lot of companies<br />

in our industry are very rooted or set in<br />

one way of doing things. We’ve had to<br />

disrupt our own internal processes and<br />

ways of thinking and to accommodate<br />

www.businesschief.com


RIVERSTREET NETWORKS<br />

210<br />

and embrace new technologies.”<br />

The CTO recalls a change in culture<br />

throughout the firm’s evolution, with<br />

the business being a more IT-based<br />

operation than ever before. Over 50%<br />

of the company’s staff work in IT, with<br />

technology underpinning the company’s<br />

core functions. “RiverStreet is a<br />

technology-based company. If it weren’t<br />

for digital, as far as what we provide<br />

to our customers, we would not have a<br />

business case at all. Everything we rely<br />

on is integrated into our digital billing<br />

system. Our mapping system is digital,<br />

how we provision customers is digital,<br />

how we upgrade them – everything<br />

is reliant on technology,” he notes.<br />

When the company began embracing<br />

digital transformation, it realised fiber<br />

was the best connectivity option for<br />

the state. “When we embraced fiber to<br />

the home technology in 2014, we said,<br />

‘This is the only way to do a network’.<br />

However, it’s expensive and we had to<br />

take the blinders off and realize that there<br />

are other ways to serve the unserved<br />

customers in the rural areas, and that<br />

could be fixed wireless,” says Call.<br />

AUGUST <strong>2019</strong>


EXECUTIVE PROFILE<br />

Jody R. Call, <strong>Chief</strong> Technology Officer<br />

Jody R. Call oversees the organization’s operations while aligning<br />

its strategic vision with the customers’ growing and ever-evolving<br />

technological needs. Bleeding edge deployments, calculated<br />

risks, and industry disruptions in rural communications are a<br />

normal day’s work in this role, which requires a growth mindset<br />

and the willingness to adapt and change direction with short<br />

notice. Call was hired in 2006 as a systems engineer to manage<br />

the company’s IPTV roll out. Later that year, he took on the task<br />

to design, engineer, and deploy the network topology for the 8-year,<br />

$44+ million, fiber-to-the-home project effectively migrating all<br />

of Wilkes Communications’ 9,000+ legacy copper / DSL subscribers<br />

to an all-active, Gigabit, fiber network; one of the first companies<br />

in the United States to do so. During his combined 23+ year career<br />

he has simultaneously taught several years at the collegiate and<br />

post-secondary level specializing in course concentrations<br />

including: networking, cyber security, hardware and software<br />

systems concepts, network operating systems, and general IT<br />

concepts. Call holds an A.A.S in Electronics Engineering,<br />

a B.S. in Human Services, and a M.A. Ed. in Instructional<br />

Technology: Information Systems. He has completed<br />

post-graduate work in wireless technologies and<br />

network engineering and has held or currently holds<br />

industry-relevant certifications from Cisco, ITILv3,<br />

Apple, Dell, and CompTIA. Call resides in<br />

his hometown of Wilkesboro in rural North<br />

Carolina, with his wife, daughter, son,<br />

five cats, and ten dogs.<br />

211<br />

www.businesschief.com


RIVERSTREET NETWORKS<br />

1951<br />

Year founded<br />

150<br />

Approximate number<br />

of employees<br />

212<br />

HQ<br />

Wilkes County, NC<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

213


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© <strong>2019</strong> Corning Optical Communications. CRR-811-AEN / July <strong>2019</strong>


Fixed wireless connectivity can be<br />

connected using existing assets such<br />

as cellphone towers, state, county or<br />

city owned towers, water towers, and<br />

grain silos at agricultural locations.<br />

“We’ve transformed our mindset to say,<br />

‘It’s okay to offer this’,” he adds.<br />

RiverStreet recently entered into<br />

a 10 to 20-year partnership with the<br />

North Carolina Electric Membership<br />

Corporation (NCEMC), which governs<br />

the 26 cooperatives across the state.<br />

“There’s been a lot of talk in recent<br />

years about electric coops wanting to<br />

get into the broadband business – they<br />

don’t want to do it for a lot of the same<br />

“Our mission<br />

at the time,<br />

although we<br />

didn’t know it,<br />

was to serve<br />

the un-served”<br />

—<br />

Jody Call,<br />

<strong>Chief</strong> Technology Officer,<br />

RiverStreet Networks<br />

215<br />

www.businesschief.com


RIVERSTREET NETWORKS<br />

“We don’t just<br />

want to survive<br />

in the industry,<br />

we want to be<br />

able to thrive”<br />

—<br />

Jody Call,<br />

<strong>Chief</strong> Technology Officer,<br />

RiverStreet Networks<br />

216<br />

reasons we don’t want to get into the<br />

electric business, because it’s foreign<br />

to us. We wanted a partnership in<br />

which we share revenue, but we could<br />

utilize the NCEMC’s fiber optic<br />

infrastructure connected to substations,<br />

and in return we could do fixed wireless<br />

or fiber to the home for customers in<br />

rural areas.” The NCEMC has roughly<br />

1.2mn customers across North<br />

Carolina, with about 700,000 being<br />

within the 17 counties RiverStreet is<br />

targeting. “First, we get customers<br />

connected to fixed wireless; that<br />

shows us where the interest is. Then<br />

we could then build a permanent fiber<br />

to the home solution to those pockets.<br />

AUGUST <strong>2019</strong>


It’s probably the biggest project we<br />

have going on,” Call adds.<br />

Another aspect of the company’s<br />

transformation journey is maintaining<br />

a growth mindset, despite a lull in<br />

funding. “It is important to continue to<br />

grow rather than waiting for someone<br />

else to come in and help. We’ve been so<br />

reliant on government subsidies, with<br />

organisations like the FCC providing<br />

settlements based on access lines.<br />

But that is slowly going away, and we<br />

don’t just want to survive in the industry,<br />

we want to be able to thrive.” Growth is<br />

driving the firm’s operations, with<br />

upgradeability and scalability being top<br />

priorities for RiverStreet. “We’re also<br />

looking out for our employees and their<br />

families, their retirements and the<br />

growth of this company. If we’ve grown<br />

this much since 2014, we can only<br />

imagine how much more we can grow<br />

if we look another 10 years into the<br />

future,” remarks Call.<br />

217<br />

www.businesschief.com


218<br />

The City of<br />

Phoenix: Rising<br />

to the challenge<br />

of its 2050<br />

sustainability<br />

goals<br />

WRITTEN<br />

BY<br />

DAN BRIGHTMORE<br />

PRODUCED BY<br />

CRAIG KILLINGBACK<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

219


CITY OF PHOENIX<br />

The City of Phoenix is working<br />

towards zero carbon, zero<br />

waste, a 100-year supply of<br />

water, clean air, and parks and<br />

transit in every neighborhood.<br />

CSO Mark Hartman reveals<br />

how its 2050 goals are making<br />

it one of the most sustainable<br />

desert cities in the world.<br />

220<br />

W<br />

hen the <strong>Chief</strong> Sustainability Officer for<br />

the City of Phoenix took up his post in<br />

2014 the target was to become the most<br />

sustainable desert city in the world. Five years<br />

later, Mark Hartman and the very innovative<br />

department heads across the City are setting their<br />

sights on a sustainability roadmap for 2050 to<br />

ensure progress for future generations in Phoenix.<br />

“Back in 2016 when City departments adopted<br />

these goals we asked: ‘What kind of city do we<br />

want to be in 2050?’” explains Hartman. “Instead<br />

of thinking ‘How did we get here?’, we want to be<br />

able to say, ‘We planned to get to this place’ and<br />

this is what the perfect city looks like — our 2050<br />

environmental goals aim to articulate those long<br />

term desired outcomes. Setting out the long-term<br />

environmental goals of zero carbon, zero waste,<br />

clean air, a 100-year supply of water, and parks<br />

and transit in every neighbourhood will drive us<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

221


CITY OF PHOENIX<br />

222<br />

“Setting out the longterm<br />

goals of zero<br />

carbon, zero waste,<br />

clean air, maintaining<br />

our 100-year supply<br />

of water, and parks<br />

and transit in every<br />

neighbourhood will<br />

really drive us towards<br />

what we’re trying to<br />

achieve as a city”<br />

—<br />

Mark Hartman,<br />

CSO, City of Phoenix<br />

towards what we’re trying to achieve<br />

as a sustainable desert city.”<br />

A big part of that sustainability<br />

journey is a series of major projects<br />

including the 91st Avenue wastewater<br />

biogas project (the largest facility of<br />

its kind in the US). “Our water department<br />

is capturing methane from our<br />

wastewater, putting it in a pipeline and<br />

generating revenue by selling it to the<br />

California green energy market. It’s a<br />

great example of finding a use for the<br />

methane from wastewater treatment.<br />

In addition to the biogas, we actually<br />

reuse nearly all of the wastewater.<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘BECOMING A CARBON NEUTRAL CITY’<br />

223<br />

We’re ahead of the curve, which<br />

encompasses how we focus our<br />

approach in the desert.” Along with<br />

the biogas production, reclaimed<br />

water is also being diverted into<br />

irrigation for farming and agriculture<br />

and for cooling at the Palo Verde<br />

Nuclear Generating Station. Meanwhile,<br />

the final by-products, the<br />

bio-solids which amount to 10%<br />

of total waste, become fertilisers<br />

for non-food crops.<br />

Hartman also notes the city’s<br />

approach to the final polishing of<br />

water has evolved. “Typically, you<br />

would just build a treatment plant<br />

before releasing it into the waterways,”<br />

he says. “Instead, we’ve constructed<br />

the Tres Rios Wetlands. It’s significant<br />

because we’re using nature to do the<br />

work for us and at the same time,<br />

it transformed this desertscape into<br />

a beautiful wetland home to 150 species<br />

of birds. So in contrast to many of our<br />

human behaviors that are slowly<br />

contaminating our ecosystem, we are<br />

being restorative and enhancing<br />

nature so that it can thrive.”<br />

It’s not just the city’s infrastructure<br />

that is evolving. Phoenix is also<br />

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CITY OF PHOENIX<br />

224<br />

supporting sustainable home development<br />

with a series of initiatives as<br />

part of its vision to have all new<br />

buildings net positive in both energy<br />

and materials by 2050. “We ran a<br />

$100,000 competition to design a<br />

beautiful home that is sustainable and<br />

near net-zero, and yet can be built at<br />

the cost of typical construction,” says<br />

Hartman, who notes that even with<br />

adherence to the latest building codes<br />

we’re a long way from buildings that<br />

need little energy to condition them.<br />

“Our planning department has posted<br />

the winning design and the detail<br />

construction drawings from Imirzian<br />

Architects on our website so anyone<br />

can download the pre-approved plans<br />

for free to build a net-zero energy<br />

home at a cost similar to current<br />

construction. And here in Phoenix, we<br />

won’t charge building permit fees for<br />

the first 25 homes. It’s an opportunity<br />

to encourage home buyers to think<br />

differently about the energy savings<br />

from well-insulated walls and highperformance<br />

windows.” Hartman<br />

highlights this focus also extends<br />

AUGUST <strong>2019</strong>


to government buildings. “We’re doing<br />

deep energy retrofits in all of our<br />

facilities,” he says. “We’ve put forward<br />

proposals on three specific sites<br />

where the $30mn budget will actually<br />

be paid back through energy savings. ”<br />

Phoenix is allied to the Covenant of<br />

Mayors, the world’s largest movement<br />

for local climate and energy actions,<br />

which has over 9,000 cities in partnership<br />

worldwide to meet the commitments<br />

of the Paris Agreement, chiefly<br />

a 30% reduction in carbon by 2025.<br />

Hartman takes inspiration from this<br />

global quest as Phoenix looks to<br />

implement new processes. “Public<br />

Works recently installed a state-ofthe-art<br />

$15mn facility where we take<br />

organics and use a state-of-the-art<br />

Turned Aerated Pile (TAP) system to<br />

produce certified compost faster<br />

than other composting methods,”<br />

he reveals. “In partnership with the<br />

City’s Compost Facility operator,<br />

WeCare Denali, we’re processing<br />

nearly 55,000 tons of inbound organic<br />

waste to compost which is either sold<br />

regionally, used at City parks and<br />

properties, or provided to City<br />

residents at special give away events .”<br />

225<br />

EXECUTIVE PROFILE<br />

Mark Hartman, <strong>Chief</strong> Sustainability Officer<br />

Mark Hartman is Phoenix’s <strong>Chief</strong> Sustainability Officer,<br />

charged to catalyze the long list of actions already underway<br />

to help Phoenix become a global leader in sustainability.<br />

Most recently, in April 2016, the council approved the 2050<br />

Environmental Goals and now, Hartman is working with<br />

departments and the community to develop interim goals<br />

and complementary social and economic goals. Hartman<br />

formerly worked at the City of Vancouver for eight years<br />

in Sustainability leading their carbon-neutral buildings<br />

strategy and their green building code, as well as supporting<br />

Vancouver’s ambition to become the greenest city in the<br />

world by 2020. Mark holds an MBA from Heriot-Watt<br />

University and is a LEED accredited professional.<br />

www.businesschief.com


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You can count on Ameresco to capture the benefits of clean<br />

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We leverage creative financing options and capital creation<br />

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Hartman believes the biggest<br />

challenge any city faces in pursuit of<br />

its sustainability goals is to break the<br />

cycle of the human propensity to do<br />

things the way they’ve always been<br />

done. “We are reluctant to embrace<br />

change, even when we’re presented<br />

with amazing opportunities,” he says.<br />

“We’re using more resources than is<br />

within the earth’s carrying capacity<br />

which is not sustainable long term.<br />

We need to start thinking about<br />

solutions to reduce waste in all of our<br />

systems, and inspire innovation to see<br />

what’s really possible.”<br />

$1.4bn<br />

Approximate<br />

revenue<br />

1881<br />

Year founded<br />

14,000+<br />

Approximate number<br />

of employees<br />

227<br />

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CITY OF PHOENIX<br />

228<br />

Collaboration is key for the ongoing<br />

sustainable evolution of Phoenix.<br />

“We’re working with established<br />

partners to help us with technology<br />

and innovation,” confirms Hartman.<br />

“For our retrofits, we’re utilising the<br />

expertise of Ameresco, Honeywell,<br />

Trane, McKinsey and Noresco. They<br />

bring decades of experience to help<br />

us achieve our goals with systems that<br />

are easy to use and operate.” These<br />

efforts are part of the city’s 2020<br />

goals to retrofit 185 City buildings<br />

to make them 20% more efficient.<br />

“Ameresco is also running our 91st<br />

Avenue biogas facility as well as being<br />

the contractor that build it,” he adds.<br />

What sustainability trends has<br />

Hartman identified globally, and<br />

across the US, that can support<br />

Phoenix with its 2050 goals? “I’m<br />

excited about the potential to purchase<br />

renewable energy,” he observes.<br />

“We’re in a regulated environment,<br />

so it needs to be in partnership with<br />

our utilities. We’re looking at options<br />

like virtual power purchase agreements<br />

and ways you can procure energy<br />

from renewable sources that are<br />

equivalent to, or less than, current<br />

AUGUST <strong>2019</strong>


utility pricing. It is possible to save<br />

money when you buy renewable<br />

energy.” Allied to this, Hartman is keen<br />

to make these opportunities available<br />

through community solar projects by<br />

partnering with a utility to implement<br />

solar and help reduce electricity costs<br />

in lower-income areas. “We also hope<br />

to partner with Clearway Energy to<br />

provide clean electricity to the district<br />

cooling system to offer carbon-neutral<br />

cooling to downtown buildings.”<br />

Hartman believes that, from a<br />

carbon pollution point of view, there<br />

are huge opportunities to apply the<br />

same learnings from making buildings<br />

more energy-efficient to transportation.<br />

“There’s a real move towards<br />

electrification of transportation,” he<br />

notes. “Norway’s electric vehicle sales<br />

now make up more than 70% of the<br />

market and countries like China see<br />

electrifying cars and buses as the<br />

solution to pollution.”<br />

Elsewhere, the Street Department<br />

just completed an upgrade of its<br />

95,000 street lights to LED. It may<br />

have cost $30mn but Hartman points<br />

out that it pays for itself out of the<br />

energy savings, with the net savings<br />

229<br />

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exceeding $1.5mn per year over and<br />

above the debt service cost, while<br />

providing better quality and more<br />

reliable lighting.<br />

Another goal for Hartman is to see<br />

Phoenix move towards a circular<br />

economy: “What if all the products<br />

and packaging we purchase was<br />

100% recyclable and everything went<br />

back to the suppliers, and then, they<br />

used them for reproduction?” He<br />

notes that the Public Works department<br />

is visionary as it was the first city in<br />

the U.S. to join the Ellen MacArthur<br />

CE-100 Network, an industry catalyst<br />

AUGUST <strong>2019</strong>


for the circular economy. In partnership<br />

with the Arizona State University,<br />

the City launched the RISN Incubator<br />

to work with early stage ventures with<br />

a focus on waste diversion and<br />

improvements in processing or<br />

utilization of waste as a raw material<br />

for new products or energy. As of<br />

1 May <strong>2019</strong>, 13 new businesses have<br />

generated $4.75M in revenue, raised<br />

$3.44M in capital, created 57 jobs,<br />

launched 13 products, filed 3 patents,<br />

and provided 43 internships. “We’re<br />

“We’re looking at options<br />

like virtual power<br />

purchase agreements<br />

and ways you can<br />

actually build and<br />

contract to get energy<br />

from a solar plant that’s<br />

equivalent to, or less<br />

than, current pricing”<br />

—<br />

Mark Hartman,<br />

CSO, City of Phoenix<br />

231<br />

www.businesschief.com


CITY OF PHOENIX<br />

2050 GOALS<br />

• Make walking, cycling and<br />

transit commonly used in<br />

every Phoenix<br />

neighbourhood<br />

• Create zero waste through<br />

participation in the circular<br />

economy<br />

• Maintain a clean and<br />

reliable 100-year supply<br />

of water<br />

232<br />

• Reduce community carbon<br />

emissions by 80-90%<br />

• All residents to live within a<br />

five-minute walk of a park or<br />

open space<br />

• Achieve a level of air quality<br />

healthy for all residents and<br />

the natural environment<br />

• Maintain a sustainable,<br />

healthy, equitable, thriving<br />

local food system.<br />

AUGUST <strong>2019</strong>


working with the private sector<br />

providing feedstock and land for lease<br />

at attractive rates to turn palm fronds<br />

into animal feed and mixed plastics<br />

into fuel... It’s exciting to look at how<br />

we can turn waste into resources<br />

instead of dumping it in a huge hole in<br />

the ground. Here in Phoenix we could<br />

fill our baseball stadium seven times<br />

with the waste we collect from<br />

residential customers. What are the<br />

resources we could take out of that<br />

seven stadiums worth of waste?<br />

Whether that’s up-cycling furniture or<br />

using plastic bags to make decking—<br />

we need to be creative. Meanwhile, the<br />

trucks that pick up that waste travel the<br />

equivalent of going to the moon and<br />

back 14 times. People say ‘it’s free to<br />

throw stuff away’, but it’s certainly is not<br />

free. Imagine the fuel needed to travel<br />

to the moon 14 times in a garbage truck.<br />

One opportunity to address this fuel<br />

use is underway for our landfill gas,<br />

whereby the methane will be captured<br />

and converted into cleaner burning<br />

natural gas to fuel our garbage trucks.<br />

This will ensure cleaner air and avoids<br />

mining natural gas by replacing it with<br />

methane produced in our landfill.”<br />

233<br />

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CITY OF PHOENIX<br />

PARTNER INFO<br />

Phoenix: supporting renewable energy<br />

and products through utilities<br />

234<br />

“We’re working with Arizona<br />

Public Service (APS) and Salt<br />

River Project (SRP),” explains<br />

City of Phoenix CSO Mark<br />

Hartman. “SRP wants to add<br />

1000MW of utility-scale solar<br />

over the next five years. The first<br />

100MW they made available to<br />

their largest customers. The city<br />

will be able to purchase solar at<br />

2.7 cents per kilowatt hour for 20<br />

years, and then sell it on the<br />

market at prevailing rates, which<br />

today averages over 3 cents,<br />

which means a large credit on<br />

our bill. As both customers and<br />

utilities invest in projects like<br />

this, its producing clean energy<br />

while saving money.”<br />

Hartman hopes to see many<br />

more of these projects. Phoenix<br />

already boasts 32MW of solar<br />

on city land, more than any<br />

other US city, and aims to<br />

double that figure. “We’re<br />

planning to add solar to parking<br />

lots, rooftops and unused land,”<br />

he pledges. “We’re also looking<br />

to lease out landfill property to<br />

utilities and renewable energy<br />

developers as a means to<br />

provide clean energy.”<br />

AUGUST <strong>2019</strong>


235<br />

In the short term, the city is on track to<br />

meet its target of 40% waste diversion<br />

by 2020. Meanwhile, Phoenix is<br />

working hard with energy service<br />

companies (ESCOs) to reduce<br />

building energy use by 20% for next<br />

year and targeting 15% for renewable<br />

energy used city-wide from diversified<br />

sources. Ultimately, Hartman stresses<br />

the need to also prioritize economic<br />

and social sustainability. “Environmentally<br />

there’s much we can do to raise<br />

awareness and make positive change<br />

but those outcomes must be achieved<br />

alongside economic and social<br />

sustainability as articulated in the<br />

City’s General Plan — community<br />

health and education, equity, civil and<br />

human rights, and safe communities<br />

— in order to become a truly sustainable<br />

desert city.<br />

www.businesschief.com


236<br />

INSIDE LEE<br />

INDUSTRIAL<br />

CONTRACTING’S<br />

PEOPLE-DRIVEN<br />

DIGITAL<br />

TRANSFORMATION<br />

WRITTEN BY<br />

HARRY MENEAR<br />

PRODUCED BY<br />

TOM VENTURO<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

237


LEE INDUSTRIAL CONTRACTING<br />

Lee Industrial Contracting<br />

Senior Operations Manager<br />

Andrew Keilman and Director<br />

of Sales Michael Hahn discuss<br />

the company’s people-first<br />

digital transformation strategy<br />

238<br />

A<br />

s the pace of technological advancement<br />

increases exponentially with each<br />

passing year, companies are given more<br />

access than ever to solutions that increase<br />

efficiency, cut costs and drive competitive advantage.<br />

However, in the light of new and dazzling<br />

technological applications, it is all too easy to lose<br />

sight of the core principle of a business relationship:<br />

the people. The shiniest, most powerful business<br />

tools in the world are worthless without the right<br />

people to wield them, and market leading products<br />

are irrelevant if they are not suited to the needs<br />

of the customer. For over 30 years, Lee Industrial<br />

Contracting has been working to bring turn-key<br />

solutions to heavy industry in a way that marries<br />

sector leading, top quality products with the right<br />

people in order to provide the best possible<br />

customer experience. “We consider our company<br />

to be a strategic partner with all of our customers.<br />

Their goal is our goal,” says Michael Hahn, Director<br />

of Sales at Lee.<br />

AUGUST <strong>2019</strong>


“WE CONSIDER OUR<br />

COMPANY TO BE A<br />

STRATEGIC PARTNER<br />

WITH ALL OF OUR<br />

CUSTOMERS. THEIR<br />

GOAL IS OUR GOAL”<br />

—<br />

Michael Hahn,<br />

Director of Sales, Lee Industrial Contracting<br />

239<br />

www.businesschief.com


LEE INDUSTRIAL CONTRACTING<br />

240<br />

“LEE HAS THE<br />

BEST PEOPLE<br />

IN EACH<br />

RESPECTIVE<br />

TRADE THAT WE<br />

DO WORK IN”<br />

—<br />

Andrew Keilman,<br />

Senior Operations Manager,<br />

Lee Industrial Contracting<br />

As a people-driven company, Lee is<br />

always looking to do things in the most<br />

efficient, cost effective, meaningful<br />

manner that adds optimum value for<br />

the client in the form of end-to-end<br />

services. Over the years, the company<br />

has grown its capabilities, vehicle fleet<br />

and roster of specialized equipment<br />

multiple times over, becoming one of<br />

the most capable complete solutions<br />

contractors in the region. A powerful<br />

tool in its arsenal that allows Lee to add<br />

value for its customers is its uniquely<br />

diverse range of in-house capabilities.<br />

Performing 13 different trade services<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘LEE CONTRACTING IN-HOUSE DEPARTMENTS’<br />

241<br />

in-house sets Lee apart within the<br />

industrial space. Self-performing as<br />

many different functions as they do,<br />

allows the company to control every<br />

aspect of its projects, from design<br />

and cost to scheduling and quality.<br />

For Senior Operations Manager,<br />

Andrew Keilman, who joined the<br />

company in 2014, the company’s<br />

emphasis on an exceedingly high<br />

standard for in-house capabilities is<br />

what attracted him in the first place.<br />

“When I saw the operations, the people<br />

and how everything was organized,<br />

I wanted to be a part of it. Lee has the<br />

best people in each respective trade<br />

that we work in,” he explains.<br />

We sat down with Hahn and Keilman<br />

to discuss Lee’s corporate strategy,<br />

competitive advantages, and how the<br />

next steps in Lee’s digital transformation<br />

journey will allow it to continue putting<br />

people, partners and clients at the<br />

center of everything it does.<br />

“We’ve won Supplier of the Year for<br />

General Motors two years in a row,”<br />

notes Hahn. One of the key drivers<br />

behind Lee becoming General Motors’<br />

Supplier of the Year is the way the<br />

company handles safety, project<br />

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LEE INDUSTRIAL CONTRACTING<br />

242<br />

delivery and the unique technological<br />

demands of providing its turn-key<br />

solutions. “Our technology played<br />

a big part in that award,” explains Hahn.<br />

Central to Lee’s technology strategy<br />

in the past few years has been the Lee<br />

Electronic Data Management System<br />

(LEDMS), an in-house data center<br />

and management platform. LEDMS,<br />

Keilman notes, houses the full spectrum<br />

of Lee’s digital operations, from its<br />

quoting process to scheduling.<br />

“It’s one of the big things that General<br />

Motors really zeroed in on,” he remarks.<br />

Now, with the rapid advancement of<br />

business tools, Lee is preparing to take<br />

steps from private towards public<br />

cloud infrastructure. The company is<br />

currently in the process of switching<br />

its operational software over to Oracle’s<br />

NetSuite, which will enable it to have<br />

a much more unified software structure<br />

and accommodate future growth.<br />

The transition to public cloud software<br />

will help provide Lee with real metrics<br />

and real analysis on how the company<br />

is performing month over month.<br />

Most importantly, the transition towards<br />

AUGUST <strong>2019</strong>


NetSuite will help the company gain<br />

insight into its CRM process, helping<br />

Lee continue to build meaningful,<br />

collaborative and long-term relationships<br />

with Lee’s clients and partners.<br />

The traditional relationship between<br />

seller, supplier and buyer is evolving.<br />

A traditional, purely transactional<br />

approach is no longer viable in the<br />

modern world of ecosystems and<br />

strategic relationships. Lee sees the<br />

shift in the status quo and is working<br />

to embrace a collaborative approach.<br />

“We have strategic partners, strategic<br />

subcontractors, strategic design firms<br />

and strategic materials providers.<br />

We can’t succeed independently<br />

without all those folks at the table,”<br />

says Hahn. “The key is understanding<br />

the client’s performance metrics.<br />

It could be dollars, quality or time that’s<br />

most important to them. If we can help<br />

them save time and increase their<br />

ability to react to their customer<br />

requirements everybody wins.<br />

We also have something else that other<br />

companies don’t offer: value engineering.”<br />

With its extensive roster of trades<br />

and in-house capabilities, Lee is able<br />

to explore a potential customer’s goal<br />

and create their request for proposal<br />

(RFP), pitching them additional ways<br />

243<br />

EXECUTIVE PROFILE<br />

Andrew Keilman, Senior<br />

Operations Manager<br />

Andrew Keilman is a Senior Operations<br />

Manager at Lee Contracting. Kielman<br />

has been in the industry for over 22 years.<br />

He started at Lee in 2014 as a Pipefitting<br />

Coordinator and was quickly promoted<br />

to oversee multiple departments as<br />

an Operations Manager. Andrew was<br />

most recently promoted to Senior<br />

Operations Manager in <strong>2019</strong>.<br />

www.businesschief.com


LEE INDUSTRIAL CONTRACTING<br />

244<br />

AUGUST <strong>2019</strong>


1989<br />

Year founded<br />

Employee owned<br />

since<br />

2015<br />

434<br />

Number of employees<br />

245<br />

www.businesschief.com


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to increase value through their project.<br />

“Value engineering has reduced cost,<br />

waste and time spent, all of which are<br />

invaluable to the customer. Between<br />

70-80% of the time our customers go<br />

with our value engineering options.”<br />

The emphasis on collaboration at<br />

Lee isn’t restricted to relationships<br />

between the company and its clients;<br />

internal cooperation and support is<br />

a core value that the executive team<br />

works hard to support. Morale and<br />

personal development are also<br />

important to Lee’s corporate culture.<br />

“We have a morale team, which is<br />

comprised of people from various<br />

areas of the company that meet on<br />

a monthly basis and come up with<br />

ideas to give back to our employees,”<br />

says Keilman. From management and<br />

communications techniques to trade<br />

skill training, Keilman explains that<br />

Lee’s team is dedicated to “building up<br />

all of our people, all the way from the<br />

apprentice level up to the highest tier<br />

of management”. Not only are Lee’s<br />

employees made to feel as though their<br />

company is invested in them, but four<br />

years ago founder Ed Lee made sure<br />

that every employee was personally<br />

invested in the company. “Ed decided<br />

to sell the company to the employees,<br />

247<br />

EXECUTIVE PROFILE<br />

Michael Hahn, Director<br />

of Sales<br />

Michael Hahn has been in the industry<br />

for 33 years and has been with Lee<br />

Contracting for 15 years. Michael started<br />

out managing the electrical department<br />

and quickly moved into sales to help build<br />

the business for Lee. Michael was<br />

promoted to Director of Sales at<br />

the beginning of <strong>2019</strong>.<br />

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LEE INDUSTRIAL CONTRACTING<br />

248<br />

“THE KEY IS UNDERSTANDING<br />

THE CLIENT’S PERFORMANCE<br />

METRICS. IF WE CAN HELP<br />

THEM SAVE TIME AND INCREASE<br />

THEIR ABILITY TO REACT TO THEIR<br />

CUSTOMER REQUIREMENTS<br />

EVERYBODY WINS”<br />

—<br />

Michael Hahn,<br />

Director of Sales,<br />

Lee Industrial Contracting<br />

AUGUST <strong>2019</strong>


so we became 100% employee owned,”<br />

says Hahn.<br />

Valuing its employees as much as it<br />

does, Lee’s corporate strategy places<br />

tremendous emphasis on safety. The<br />

company has a strong safety team that<br />

is involved in every project, job hazard<br />

analysis and tool box talks; the health<br />

and wellbeing of Lee’s people is<br />

paramount. As it embraces the next<br />

stage of its digital transformation<br />

journey, the company is keeping people<br />

at the heart of everything it does.<br />

Along with the management team,<br />

including Keilman and Hahn, are at the<br />

helm of a diverse, capable, innovative<br />

company that puts people first, using<br />

the power of human dedication and<br />

ingenuity to drive innovation. Looking<br />

to the future, Keilman is confident in the<br />

capabilities that Lee brings to the table:<br />

“We have the best people, the best<br />

tools, the best equipment, the best<br />

facilities and the best plan on every<br />

project that we do. I think that’s enabled<br />

us to be successful year after year.”<br />

249<br />

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250<br />

SIMON FRASER<br />

UNIVERSITY<br />

AN ENGAGED<br />

UNIVERSITY<br />

AUGUST <strong>2019</strong>


WRITTEN BY<br />

JOHN O’HANLON<br />

PRODUCED BY<br />

CRAIG KILLINGBACK<br />

251<br />

www.businesschief.com


SIMON FRASER UNIVERSITY<br />

SIMON FRASER UNIVERSITY’S<br />

SUSTAINABILITY OFFICE IS<br />

A FOCUS OF ACTION AT THE<br />

INTERSECTION OF PLANETARY<br />

REGENERATION, HUMAN<br />

HEALTH, AND SOCIAL JUSTICE.<br />

252<br />

O<br />

ne can’t help thinking that the sustainability<br />

team at Simon Fraser University<br />

(SFU) have some of the best jobs in the<br />

world. Most of the world’s young people, at least,<br />

are now swinging behind the awareness that we<br />

are living during a time of climate crisis and that<br />

time is running out to change our behaviour if we<br />

are to avoid or mitigate the consequences of<br />

biodiversity loss, pollution, and climate change.<br />

That awareness is not unique to SFU, of course,<br />

but few higher education institutions have<br />

embraced sustainability principles so intelligently<br />

or realistically. The Province of British Columbia is<br />

committed to reducing greenhouse gas emissions<br />

to 80% below 2007 levels by 2050 and, in 2011,<br />

its capital Vancouver, home to SFU, set the goal of<br />

becoming the greenest city in the world by 2020.<br />

SFU is a partner in these broader goals.<br />

The University itself has adopted sustainability<br />

as one of its six core values, which means it is<br />

embedded in the fabric of the institution and the<br />

day-to-day decisions taken by every department.<br />

AUGUST <strong>2019</strong>


The green wall by SFU’s Saywell Hall<br />

253<br />

The University is also in the process<br />

of developing a 5-year climate action<br />

plan to address the most urgent<br />

sustainability issue of our time.<br />

SFU recognizes that its institutional<br />

responsibility extends beyond its<br />

boundaries to include the social,<br />

economic and ecological sustainability<br />

of its campuses and the communities<br />

in which they operate. Therefore,<br />

these plans are being developed with<br />

the recognition that sustainability<br />

work broadly, and climate action<br />

specifically, cannot be done without<br />

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SIMON FRASER UNIVERSITY<br />

254<br />

“THE MOMENT<br />

YOU STEP ON<br />

CAMPUS AS A<br />

NEW COMMUNITY<br />

MEMBER YOU GET<br />

INTRODUCED TO<br />

THE CONCEPT OF<br />

SUSTAINABILITY<br />

AS A CORE VALUE”<br />

—<br />

Candace Le Roy,<br />

Director of Sustainability,<br />

Simon Fraser University<br />

addressing social inequities, racism,<br />

reconciliation and partnership with<br />

local Indigenous nations.<br />

To implement SFU’s sustainability<br />

values, eight very committed<br />

professionals are led by Director of<br />

Sustainability Candace Le Roy – they<br />

provide planning, consultancy, and<br />

support services to SFU community<br />

members to help them develop, scale,<br />

or promote their sustainability work<br />

and lead sustainability projects across<br />

the university. It’s by no means an act<br />

of enacting top-down policies, she<br />

hastens to say. “We recently finalised<br />

our 20-year Sustainability Vision,<br />

which identifies 20 strategic goals<br />

following a year-long community<br />

engagement progress involving<br />

all University stakeholder groups:<br />

thousands of people took part from<br />

students up to the Board. Everything<br />

we do in the Sustainability Office<br />

is in collaboration and partnership<br />

with the faculty, staff, students, and<br />

communities we are embedded in.<br />

Sustainability at SFU is a shared<br />

responsibility and a joint effort.<br />

Our office merely facilitates this joint<br />

effort so that it is coordinated,<br />

connected, and inclusive.”<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘SFU OPENS NEW SUSTAINABLE BUILDING’<br />

255<br />

PARTNERS IN ENGAGEMENT<br />

It’s this level of commitment, she<br />

observes, that makes the job so<br />

rewarding. Every new student and<br />

member of staff receives sustainability<br />

education through orientation: “The<br />

moment you step on campus as a new<br />

community member you get introduced<br />

to the concept of sustainability<br />

as a core value. We want them to see<br />

how each individual can contribute in<br />

their area.” However she acknowledges<br />

that most people come in with a high<br />

level of awareness these days – all the<br />

team needs to do is connect this<br />

awareness to what SFU is doing,<br />

listen to their ideas, and help remove<br />

barriers to their contributions in<br />

practice. At SFU, students aren’t seen<br />

as ‘end-users’ to be trained and<br />

delivered, but as partners in learning,<br />

discovery and community engagement.<br />

The tripartite social, economic and<br />

ecological view of sustainability is<br />

something that all alumni have an<br />

opportunity to take with them into the<br />

world beyond. To ensure that the work<br />

at SFU is connected with global goals<br />

the 20-Year vision and the emerging<br />

5-year plan have been developed in<br />

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SIMON FRASER UNIVERSITY<br />

256<br />

alignment with the UN’s Sustainable<br />

Development Goals.<br />

Engagement with major British<br />

Columbia institutions is key to SFU.<br />

For example, the Pacific Water<br />

Research Centre (PWRC) recently<br />

hosted a seminar on Vancouver’s Rain<br />

City Strategy to embrace rainwater as<br />

a valuable resource and to conserve<br />

90% of its annual rainfall. The<br />

University also aims to support major<br />

shifts in behaviour such as its advocacy<br />

for a funicular (gondola) to connect<br />

its University campus on the top<br />

of Burnaby Mountain, providing an<br />

alternative to the diesel-fuelled bus<br />

service. This project has been finally<br />

approved in principle by Burnaby city<br />

council, and would speed up travel<br />

times and cut emission levels.<br />

Another promising project is the<br />

development of the Corix biomass<br />

district energy system on the Burnaby<br />

Mountain campus which will reduce<br />

the campus greenhouse gas emissions<br />

by 60%-80%. This — along with<br />

the University’s achievement of<br />

reducing the carbon footprint of the<br />

University’s investment portfolio by<br />

50% below the baseline measurement<br />

SFU’s Academic Quadrangle<br />

AUGUST <strong>2019</strong>


eported as of 31 March 2016 —<br />

demonstrates how the university is<br />

committed to working with on and off<br />

campus partners to make big shifts in<br />

the way they operate as an institution.<br />

A major project underway encourages<br />

‘sustainable spaces’ across the<br />

university’s facilities which integrates<br />

sustainability principles into the<br />

day-to-day actions of staff members.<br />

Becoming a Certified Sustainable<br />

Office is a great way to encourage<br />

staff collaboration on sustainability<br />

and to create a more robust, engaged<br />

workplace, says Blok. “Certified<br />

Sustainable Offices adopt practices<br />

that improve their environmental,<br />

economic and social performance.<br />

They receive a toolkit, support and<br />

resources and that encourages others<br />

to participate.” This certification<br />

program has now been extended into<br />

events, vendors, and soon into labs.<br />

Large events such as the President’s<br />

annual staff appreciation BBQ are<br />

certified sustainable events further<br />

demonstrating that all levels of<br />

the University are contributing to<br />

these efforts.<br />

The bottom line, says Manager of<br />

257<br />

EXECUTIVE PROFILE<br />

Candace Le Roy, Director of Sustainability<br />

Guiding the institution-wide approach to sustainability<br />

leadership, Le Roy consults on risks and opportunities<br />

to integrate sustainability into the University’s core<br />

business. Over her 16 years at SFU, Candace has been<br />

dedicated to facilitating University-wide efforts to<br />

innovate and contribute meaningfully and measurably<br />

to the shift toward a regenerative, circular, and<br />

equitable society and economy. Candace works<br />

collaboratively with partners both within and outside<br />

the University to identify, develop, and deliver major<br />

cross-portfolio projects that contribute to this work.<br />

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SIMON FRASER UNIVERSITY<br />

258<br />

Campus Sustainability, Kayla Blok,<br />

is that sustainability should be<br />

integrated into all projects, research<br />

and teaching. It is also central to<br />

procurement, with all contracts and<br />

purchases over $100,000 required<br />

to be considered from a sustainability<br />

point of view. “Whenever we go out<br />

to tender we have questions and<br />

requirements for suppliers, and<br />

I support multiple request for proposal<br />

(RFP) committees by advising on how<br />

that should be done. When we undertake<br />

a project, are our staff seeing their<br />

work through a sustainability lens?<br />

When our students graduate are they<br />

leaving with a holistic understanding<br />

of sustainability? These are the type of<br />

questions we are asking.”<br />

THE ROAD TO ZERO WASTE<br />

It is never going to be possible to<br />

recycle 100% of waste, but by<br />

adopting ‘circular economy’ practices<br />

SFU is heading towards a goal of 10%<br />

waste minimization and 90% diversion<br />

from landfill. SFU started its zero<br />

waste journey in 2012 at a time when it<br />

had only a two-stream waste diversion<br />

system and most items were being<br />

AUGUST <strong>2019</strong>


“WHEN OUR<br />

STUDENTS<br />

GRADUATE ARE<br />

THEY LEAVING<br />

WITH A HOLISTIC<br />

UNDERSTANDING<br />

OF SUSTAINABILITY?”<br />

—<br />

Kayla Blok,<br />

Manager of Campus Sustainability,<br />

Simon Fraser University<br />

sent to the landfill. Within 18 months,<br />

the initiative was diverting more than<br />

70% of SFU’s landfill waste and had<br />

introduced circular economy principles<br />

to look at purchasing, and require<br />

suppliers to work towards recyclable<br />

and compostable packaging.<br />

Today, across the campus, there are<br />

four-stream waste stations allowing<br />

for food and compostables, paper and<br />

cardboard, recyclables and landfill<br />

garbage. It’s not hard to get buy-in<br />

these days, with the media full of<br />

reminders about things like plastic<br />

pollution and extinction rates, but<br />

people still need to be helped to<br />

understand the circular economy –<br />

that is where the Sustainability Office<br />

steps in to educate and encourage,<br />

affirms Kayla Blok. The team, in<br />

conjunction with a large stakeholder<br />

group that includes departments<br />

across the university, is currently set to<br />

launch an initiative to eliminate singleuse<br />

plastics and products from all three<br />

campuses, making them the first<br />

university in Canada to act on this issue.<br />

Research, business expertise,<br />

software engineering and the spur of<br />

environmental perils have come<br />

together in an exciting project that<br />

259<br />

www.businesschief.com


Responsible<br />

Investing for<br />

a sustainable<br />

future.<br />

BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asse<br />

constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment<br />

registered trademark of Bank of Montreal, used under licence.


Invest. Avoid. Improve.<br />

As a founding signatory to the United Nations Principles for Responsible Investment (UNPRI), BMO Global Asset<br />

Management is boldly committed to solving our clients’ sustainability challenges with the prudent management of<br />

environmental, social and corporate governance (ESG) issues integrated into our overall investment philosophy:<br />

Invest in companies that demonstrate responsible business.<br />

Avoid companies with activities that harm society or the environment.<br />

Improve companies’ management of their ESG issues through engagement and voting.<br />

For over 35 years, this approach to responsible investment has driven long-term value by aligning our clients’<br />

financial goals with their ethical values.<br />

Let’s connect:<br />

www.bmogam.com<br />

t Management Corp. and BMO’s specialized investment management firms. The information provided herein does not<br />

advice. Past performance is no guarantee of future results. All Rights Reserved. ®”BMO (M-bar roundel symbol)” is a


SIMON FRASER UNIVERSITY<br />

262<br />

promises to contribute a great deal<br />

to achieving zero waste. And each of<br />

these facets has come out of SFU.<br />

The founders of Intuitive AI Hassan<br />

Murad and Vivek Vyas are both alumni<br />

of SFU, where they first developed<br />

software to tackle the problem of<br />

recycling. SFU itself may have made<br />

great strides but globally only around<br />

3% of waste is recycled. Even in a<br />

four-stream system, waste identification<br />

remains a problem – what is recyclable,<br />

what is not, where should you put it?<br />

They began with a simple vision,<br />

to create a zero waste world. This led<br />

them to develop an AI platform driven<br />

by sensors that empower spaces to<br />

be more sustainable.<br />

Murad and Vyas launched Oscar,<br />

an AI-powered visual sorting system,<br />

with a camera that detects people<br />

approaching a bin, automatically<br />

identifies each item and tells people<br />

where to place it. “This is a true<br />

innovation story from SFU,” explains<br />

Blok. “They spent a great deal of time<br />

formulating this idea at our labs on<br />

the Surrey campus. We were able<br />

to support this project right from<br />

the ideation phase, and the Sustainability<br />

Office was there at the initial<br />

Erica Lay, Associate Director at SFU’s<br />

Sustainability Office presenting at a 20-year<br />

sustainability visions and goals session.<br />

consultations providing key facts,<br />

giving operational and logistical<br />

feedback, and providing expertise.<br />

The testing phase was carried out on<br />

our downtown Vancouver campus and<br />

we were successful in providing space<br />

for them to test the platform and<br />

promote their message.” The Surrey<br />

campus now houses the first higher<br />

education Oscar waste station in<br />

Canada and have been taken up<br />

at coffee chains and an airport in<br />

Toronto. Intuitive is currently part<br />

of the Next AI accelerator in Toronto<br />

AUGUST <strong>2019</strong>


and the VentureLabs business<br />

accelerator at Simon Fraser University.<br />

Oscar is as much about data as it is<br />

about making life easier for the<br />

consumer of a cup of coffee. The<br />

software can identify brands, patterns<br />

of consumption by area and demographic<br />

information all of value to the<br />

airport, shopping mall or university<br />

where it is located – garbage in,<br />

valuable data out. It’s by leveraging<br />

this data that Intuitive AI will monetise<br />

its software in the future. “Perhaps the<br />

most promising part of the technology<br />

is that it provides robust data,” says<br />

263<br />

EXECUTIVE PROFILE<br />

Kayla Blok, Manager of Campus<br />

Sustainability<br />

Overseeing the Campus Sustainabilityportfolio,<br />

Blok liaises with operational functions across<br />

all three campuses to implement and scale<br />

sustainable decisions and practices. Her work<br />

ensures that the University operates in alignmen<br />

with its sustainability plans, visions, and goals.<br />

Blok offers consulting services for all SFU<br />

Community members and works closely with<br />

internal and external partners on signature<br />

projects and initiatives.<br />

www.businesschief.com


SIMON FRASER UNIVERSITY<br />

Kayla Blok. “We look forward to<br />

seeing how we can apply this data<br />

to influence design, planning, and<br />

purchasing decisions, for example.<br />

Our hope is that it will help our<br />

operational as well as sustainability<br />

goals by creating targets to improve<br />

waste management at the campus.”<br />

264<br />

AWARENESS AND PERCEPTION<br />

Oscar has attracted a lot of media<br />

attention thanks to its visibility. “This<br />

is a really good example of the kind<br />

of thing that happens at SFU due to<br />

our culture of, and commitment to,<br />

innovation, community engagement,<br />

and student empowerment,” says<br />

Candace Le Roy. “Our students get<br />

to work on projects that they take out<br />

into the wider world and the benefit<br />

comes back to the institution through<br />

new projects and initiatives and the<br />

application of technology. In the 16<br />

years I have been at SFU, I have seen<br />

the students always at the forefront of<br />

major initiatives at SFU and then they<br />

carry this leadership to the communities<br />

and organizations they serve<br />

when they leave.”<br />

Even with the impetus provided by the<br />

rapidly increasing media coverage of<br />

AUGUST <strong>2019</strong>


SFU’s Morris J. Wosk Centre<br />

for Dialogue<br />

the climate crisis, getting sustainability<br />

thinking embedded in a large, transient<br />

and diverse university population is<br />

not a simple feat. It might seem like<br />

a no-brainer to ban plastic bottles, but<br />

many overseas students come from<br />

cultures where bottled water is the<br />

only safe water. “We constantly have<br />

to customize our communication<br />

tactics and infuse them with humanity,”<br />

she says. “On the one hand, we have<br />

to keep up with innovations in industry,<br />

research, politics and international<br />

targets and do things like ban single<br />

use plastics and dramatically reduce<br />

our greenhouse gas emissions and on<br />

the other hand we also have to bring<br />

people along with us on this journey.<br />

We need to help people understand<br />

how their consumption decisions<br />

affect the planet and people, but we<br />

can only do this if we make an effort to<br />

understand them not has consumers,<br />

but as people who have unique<br />

backgrounds, experiences, and<br />

perspectives. Sustainability efforts<br />

have been rightly criticized for being<br />

led primarily by rich white people<br />

who come from a particular (mostly<br />

Western) perspective. If we are to truly<br />

address sustainability issues we need<br />

265<br />

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SIMON FRASER UNIVERSITY<br />

266<br />

to design solutions from all perspectives<br />

and with all people in mind.”<br />

Justifiably proud of the nuanced<br />

and holistic way in which the organisation<br />

has taken the lead on advancing<br />

sustainability best practice, Candace<br />

Le Roy, her team, and their colleagues<br />

at SFU work tirelessly to gain the<br />

support of all stakeholders. “Getting<br />

a major initiative off the ground at<br />

a university is usually the first and<br />

biggest hurdle because we value the<br />

engagement of all relevant stakeholders<br />

and engagement takes time. But the<br />

effort put in is well worth the quality<br />

that is the result,” she says. She points<br />

to the cross departmental teams that<br />

have been formed to work on initiatives<br />

like the BC Cool Campus<br />

challenge, spearheaded by SFU but<br />

spread across British Columbia, to<br />

reduce energy consumption by simple<br />

actions and the Fair Trade and<br />

Changemaker Campus designations<br />

SFU has achieved.<br />

In the end, all of this is about<br />

changing the way we see the world<br />

and our place in it. Virtually every<br />

decision we make has an impact on<br />

people and the planet, good or bad,<br />

she concludes. “At the end of the day<br />

SFU’s Asia Pacific Hall in the Morris J. Wosk<br />

Centre for Dialogue<br />

“SUSTAINABILITY<br />

GIVES UNIVERSITIES<br />

AND COLLEGES<br />

A COMPETITIVE<br />

ADVANTAGE AND<br />

MAKES US MORE<br />

RESILIENT TO<br />

INTERNAL AND<br />

EXTERNAL THREATS”<br />

—<br />

Candace Le Roy,<br />

Director of Sustainability,<br />

Simon Fraser University<br />

AUGUST <strong>2019</strong>


267<br />

it’s not about recycling or using less<br />

energy. Sustainability work is about<br />

understanding how to make better<br />

decisions based on a strong understanding<br />

that humans are a part of<br />

nature not outside of it. We need to<br />

learn from, respect, and apply<br />

Indigenous ways of knowing and leave<br />

no one behind. This means constantly<br />

being aware of the interconnections<br />

between ecology, politics, economics,<br />

and social inequities. It’s planning to<br />

ensure we survive on this planet and<br />

our institutions survive in the current<br />

political and ecological climate.<br />

Addressing sustainability challenges,<br />

like the climate crisis, gives universities<br />

and colleges a competitive advantage<br />

by making us more relevant to our<br />

communities and more resilient to<br />

internal and external threats.”<br />

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268<br />

THE CITY OF<br />

BRAMPTON:<br />

MANAGING ENERGY<br />

AND EMISSIONS<br />

FOR SUSTAINABLE<br />

OUTCOMES<br />

WRITTEN BY<br />

WILLIAM SMITH<br />

PRODUCED BY<br />

CRAIG KILLINGBACK<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

269


CITY OF BRAMPTON<br />

CHUN LIANG, SUPERVISOR,<br />

ENERGY MANAGEMENT AT<br />

THE CITY OF BRAMPTON,<br />

ONTARIO, DISCUSSES THE<br />

ROLE SUSTAINABLE ENERGY<br />

HAS TO PLAY IN MEETING<br />

EMISSIONS TARGETS<br />

270<br />

C<br />

limate change matters pertaining to<br />

emissions and sustainable sources of<br />

energy are high in the public consciousness.<br />

Energy generation measures such as solar<br />

panels and wind turbines serve as symbols of<br />

energy that are more sustainable because they<br />

reduce emissions at large, with an emissions<br />

strategy often functioning as the vanguard for<br />

sustainable outcomes. Chun Liang is Energy<br />

Management Supervisor at the City of Brampton,<br />

Ontario, and is responsible for the energy and<br />

emissions strategy of City owned buildings.<br />

He credits the urgency of global warming as<br />

inspiring his entry into the field. “Right before I got<br />

into energy performance contracting, the Kyoto<br />

Protocol came into effect and said two things:<br />

global warming is happening and human activity is<br />

contributing to it. Warming is related to emissions<br />

which are generated by the energy that we use,<br />

especially the burning of fossil fuels, so I thought<br />

to myself, ‘this is a great time to get into energy<br />

AUGUST <strong>2019</strong>


Photos courtesy of the City of Brampton<br />

271<br />

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CITY OF BRAMPTON<br />

272<br />

“TOO OFTEN WE<br />

WORK IN SILOS<br />

WHEN WE COULD<br />

BE SHARING<br />

KNOWLEDGE<br />

AND LESSONS<br />

LEARNED”<br />

—<br />

Chun Liang,<br />

Supervisor, Energy Management,<br />

City of Brampton<br />

performance contracting – the world<br />

is moving on this, and I can join the<br />

movement to help the planet and<br />

recover energy costs’.”<br />

In his current role, Liang has used<br />

his energy background to help rectify<br />

some of the challenges Brampton<br />

faces. This includes a large portfolio<br />

of older buildings that have a number<br />

of energy performance issues<br />

including building envelope and<br />

building automation systems. Some<br />

have outdated automation systems<br />

so Liang initiated a technology<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘UNLOCKING DOWNTOWN BRAMPTON’S POTENTIAL:<br />

CONCEPTUAL VIDEO’<br />

273<br />

investigation including discussions<br />

regarding a unified display portal<br />

(single pane of glass view) with key<br />

stakeholders to determine the best<br />

solution for the City of Brampton.<br />

“The hope with a unified display is that<br />

building operators will have an easier<br />

time managing the control of many<br />

different buildings, improve energy<br />

performance and increase occupant<br />

comfort.” With an energy performance<br />

and modelling background to ensure<br />

buildings meet targets, including<br />

energy performance targets under<br />

the LEED building rating system, Liang<br />

has brought his experience to bear on<br />

properties in Brampton, and one of<br />

the major potential energy efficiency<br />

improvements comes from heating.<br />

“When you look at the energy and<br />

emissions pie chart of a building,<br />

especially in an Ontario, Canada<br />

context, much of it is from heating<br />

since we’re burning fossil fuels for<br />

eight months a year. That is a major<br />

consideration for us because it<br />

applies to both of our objectives: to<br />

reduce energy use while also reducing<br />

our emissions. The focus for the<br />

next five years – the term of the City’s<br />

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CITY OF BRAMPTON<br />

274<br />

Zero Carbon Transition Plan – is<br />

finding ways to reduce natural gas<br />

use in the City’s existing buildings.<br />

A recent successful project done<br />

by the energy management team<br />

was the installation of heat recovery<br />

system. “This system recovers heat<br />

from swimming pool drain water at<br />

one of the City’s community centres,”<br />

says Liang.<br />

While effective measures can be<br />

taken to improve the energy performance<br />

of existing buildings, future<br />

gains can be achieved by ensuring<br />

new structures are built to high<br />

performance standards. “The City<br />

of Brampton is designing, building<br />

and renovating many new community<br />

centers, fire stations, etc. due to<br />

population growth. The energy<br />

management group works closely<br />

with our building design and construction<br />

division, collaborating with them,<br />

to integrate energy design into the<br />

buildings.” To achieve the energy<br />

targets required, Liang and his team<br />

have introduced parametric energy<br />

modeling that uses cloud computing<br />

AUGUST <strong>2019</strong>


as one of the central tools. “The<br />

benefit of energy modeling on the<br />

cloud is that it can quickly simulate<br />

interactive effects, thereby drastically<br />

reducing the amount of time it takes to<br />

produce options that not only provide<br />

optimal energy performance but can<br />

also illustrate paths for emissions<br />

and operating cost reductions. If we<br />

change lights to LED or we use more<br />

daylighting, what effect does that have<br />

on the heating? Strategic use of<br />

daylight for a building can also be<br />

a passive form of heating which can<br />

help to reduce emissions associated<br />

275<br />

Chun Liang, Supervisor,<br />

Energy Management<br />

EXECUTIVE PROFILE<br />

Chun Liang is an energy management professional<br />

with over 20 years of experience in the building<br />

industry including HVAC design and construction,<br />

energy performance contracting, building energy<br />

modelling and LEED consulting. He is currently<br />

the Supervisor of Energy Management at the City<br />

of Brampton responsible for strategic planning,<br />

project delivery, energy procurement, utility<br />

management, third party funding and reporting.<br />

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CITY OF BRAMPTON<br />

276<br />

AUGUST <strong>2019</strong>


“IT’S NOT JUST<br />

ABOUT ENERGY<br />

EFFECTS, BUT<br />

ALSO OCCUPANT<br />

COMFORT”<br />

—<br />

Chun Liang,<br />

Supervisor, Energy Management,<br />

City of Brampton<br />

277<br />

www.businesschief.com


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“WE’RE IN A RACE<br />

AGAINST TIME TO HIT<br />

THE PROVINCIAL AND<br />

FEDERAL EMISSION<br />

REDUCTION TARGET,<br />

WHICH IS BASED ON<br />

THE PARIS AGREEMENT,<br />

SO WE NEED TO<br />

TRANSITION TO ZERO<br />

CARBON AS SOON<br />

AS WE CAN”<br />

—<br />

Chun Liang,<br />

Supervisor, Energy Management,<br />

City of Brampton<br />

with heating.” Aside from utilizing<br />

sustainable energy, such measures<br />

have the knock-on effect of improving<br />

the experience of citizens, as with the<br />

natural light provided by daylighting.<br />

“These are the types of things that we<br />

also look at. It’s not just about energy<br />

effects, but also occupant comfort.”<br />

Such measures are to play a vital<br />

part in achieving the city’s ambitious<br />

Zero Carbon Transition Plan. “The<br />

provincial government has set a target<br />

of 30% emissions reductions by 2030,<br />

and the federal government has set an<br />

80% reduction target by 2050, which<br />

is in line with the Paris Agreement to<br />

limit the global temperature rise to 1.5<br />

degrees Celsius by 2050. Our Zero<br />

Carbon Transition Plan is predicated<br />

around these targets. We’re looking at<br />

reducing our energy use for new and<br />

existing buildings by 30% by 2030.<br />

We’re targeting various measures:<br />

heating, ventilation, air conditioning<br />

systems and building envelope.<br />

We’re going to use heat recovery:<br />

recycling waste heat wherever<br />

possible. Once you get the energy<br />

demands of the building down, then<br />

the next step is to look at renewable<br />

technology. That’s the most efficient<br />

way to approach it. It’s energy<br />

management 101.” Other innovations<br />

geared towards meeting the city’s<br />

targets include innovations in passive<br />

heating. “The SolarWall is a matte<br />

black surface that can be put on top of<br />

a building’s exterior wall, leaving an air<br />

gap,” says Liang. “The sun hits this<br />

black surface, and transfers energy to<br />

the wall and air gap. The air is heated<br />

in that gap and then brought into the<br />

building to preheat the air for ventilation.<br />

“We expect to verify the energy savings<br />

279<br />

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CITY OF BRAMPTON<br />

280<br />

for a system installed at a City of<br />

Brampton building as it has found<br />

success in other building applications.”<br />

The system may be able to reduce<br />

emissions associated with heating.<br />

Regarding the reduction of vehicle<br />

emissions, charging stations for<br />

electric cars have been installed at<br />

City owned buildings with a focus on<br />

public facing sites such as libraries<br />

and community centres.<br />

“We’re in a race against time to hit<br />

the provincial and federal emission<br />

reduction target, which is based on<br />

the Paris Agreement, so we need to<br />

transition to zero carbon as soon as<br />

we can,” says Liang. It is obvious that<br />

Brampton is proactively contributing to<br />

this effort, setting targets and bringing<br />

in concrete measures to ensure their<br />

achievement. Nevertheless, sometimes<br />

advancements can bring their<br />

own drawbacks. “We have a number<br />

of solar photovoltaic installations that<br />

generate electricity for us, and they<br />

provide a steady stream of revenue,<br />

as well as reducing our electricity use.<br />

The challenge is the cost of electricity.<br />

If we switch over to electricity to heat<br />

our buildings, electricity costs<br />

AUGUST <strong>2019</strong>


significantly more than natural gas per<br />

equivalent energy unit, so the question<br />

is, how do we bridge that gap? It’s kind<br />

of an open question.”<br />

One possible solution to this<br />

conundrum is an improvement in<br />

the way society works together.<br />

“I’m hoping to see more collaboration<br />

between municipalities, utilities, and<br />

the private sector. Too often we work<br />

in silos when we could be sharing<br />

knowledge and lessons learned.<br />

For example, a battery storage project<br />

can provide resiliency for a building<br />

and perhaps also provide part of<br />

its energy needs for heating and<br />

cooling. This approach provides<br />

great co-benefits, if the costs of off<br />

peak battery charging can be<br />

lowered further. That’s something<br />

I hope to see more of in the future.<br />

As we collaborate and collectively<br />

pool our resources, we accelerate<br />

the case for sustainability.”<br />

281<br />

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282<br />

HUAWEI<br />

TECHNOLOGIES:<br />

BRINGING RURAL<br />

CANADIANS CLOSER<br />

WITH HIGH-SPEED<br />

INTERNET<br />

WRITTEN BY<br />

LAURA MULLAN<br />

PRODUCED BY<br />

ARRON RAMPLING<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

283


HUAWEI TECHNOLOGIES<br />

FAMOUS AS A TRAILBLAZER IN<br />

THE CONSUMER ELECTRONICS<br />

AND 5G MARKET, HUAWEI<br />

TECHNOLOGIES IS NOW TURNING<br />

ITS ATTENTION TO CANADA’S FAR<br />

NORTH IN A BID TO CONNECT<br />

REMOTE, RURAL COMMUNITIES<br />

284<br />

W<br />

hether you want to reconnect with a long<br />

lost friend, learn a new language or even<br />

order a taxi, the internet has made it<br />

possible with just a click of a button. It’s arguably<br />

one of the most disruptive technological innovations<br />

of the last century. In fact, in Canada’s Internet<br />

Factbook 2018, a whopping 96% of Canadians<br />

highlighted how high-quality internet access was<br />

important at home, with 59% going as far as to call<br />

it ‘critically important’. Yet, whilst the internet may<br />

seem like a ubiquitous tool, ready and waiting at our<br />

fingertips, for many of Canada’s rural communities,<br />

poor or no internet access is a common reality.<br />

One firm hoping to remedy this is Huawei<br />

Technologies Inc. The Chinese powerhouse has<br />

made it big in the consumer electronics market,<br />

standing as the second largest phone maker in the<br />

world, and it’s also leading the race towards 5G.<br />

Chris Pereira, Director of Public Affairs at Huawei<br />

Technologies, outlines how Canada has played<br />

a vital role in Huawei’s success, standing as a central<br />

hub for research and development. “Last year,<br />

AUGUST <strong>2019</strong>


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285


HUAWEI TECHNOLOGIES<br />

286<br />

“HAVING<br />

ACCESS TO<br />

HIGH-SPEED<br />

INTERNET<br />

CAN BE LIFE<br />

CHANGING”<br />

—<br />

Christopher Pereira,<br />

Director of Public Affairs,<br />

Huawei Technologies Canada<br />

we invested $180mn in research and<br />

development in Canada to build our<br />

research centre in Ottawa and to<br />

accelerate 5G research,” he notes –<br />

and now the company wants to give<br />

back. Pereira explains that, by committing<br />

to the United Nations’ sustainable<br />

development goals, Huawei is embarking<br />

on an ambitious endeavor: to<br />

connect all Canadians with high-speed<br />

internet by 2030. In addition, the<br />

Canadian Radio-television and<br />

Telecommunications Commission’s<br />

(CTRC) universal service objective for<br />

fixed Internet access service is that all<br />

Canadians have access to at least 50<br />

Mbps download and 10 Mbps upload,<br />

with an option of unlimited data.<br />

Likewise, the universal service<br />

objective for mobile wireless services<br />

is that all Canadians have access to<br />

the latest generally deployed mobile<br />

wireless technology (currently LTE).<br />

According to regulators, mobile<br />

services should be accessible in<br />

homes, businesses and along major<br />

transportation roads.<br />

To make its commitments a reality,<br />

Huawei has turned its attention to the<br />

remote towns and villages across<br />

Northern Canada. “That’s the place<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘NORTHERN LIGHTS’<br />

287<br />

where the connectivity is the weakest,<br />

so we’re trying to connect people in<br />

more remote and smaller communities,”<br />

Pereira says, noting how he and his<br />

team recently visited the north-western<br />

Canadian town of Inuvik, located 200km<br />

inside the Arctic circle. In this region,<br />

you can witness a midnight sun or the<br />

mesmerising lights of Aurora Borealis<br />

– but until recently the internet connection<br />

was exceedingly sluggish. Now, by<br />

partnering with Ice Wireless, Huawei<br />

has been able to deliver high-speed<br />

4G LTE services to the remote town.<br />

“Having access to high-speed internet<br />

can be life changing in a few ways,”<br />

observes Pereira. “With high-speed<br />

internet, you can open an online store<br />

or help your business grow beyond<br />

your own community, so it’s helping<br />

to connect the north to the economy.<br />

Another aspect that’s often overlooked<br />

is how it can help communities<br />

reconnect.” Pereira points out that<br />

many Inuit populations were extremely<br />

isolated before they had high-speed<br />

internet, whereas now with the rollout<br />

of 4G, Inuit communities are using the<br />

internet to sell and trade goods or<br />

connect with each other via Facebook<br />

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HUAWEI TECHNOLOGIES<br />

288<br />

in their own language. “Aboriginal<br />

culture can be maintained and flourish<br />

because of the connectivity that the<br />

internet brings,” he says.<br />

In trying to provide Northern Canada<br />

– where temperatures can plunge to<br />

-40°C – with high speed internet<br />

access, Huawei has a mammoth<br />

challenge on its hands. “The biggest<br />

challenge is the environment,” admits<br />

Pereira. “When you build a network<br />

tower, it can get covered in thick ice<br />

in the winter so the equipment needs<br />

to be very tough and durable. You also<br />

need to power the station; sometimes<br />

these stations are in such remote<br />

places that you don’t have a power<br />

supply nearby so you need to find an<br />

alternative solution, like solar.” To take<br />

on this challenge, Pereira points out<br />

AUGUST <strong>2019</strong>


how Huawei relies on the expertise<br />

of its team (today the firm has around<br />

1,100 employees in Canada, with<br />

around 91% being Canadian citizens)<br />

as well as its renowned R&D capabilities.<br />

“We have around 193,000 employees<br />

around the globe and more than<br />

80,000 of them are involved in R&D.<br />

In many ways you could say we’re an<br />

R&D company,” Pereira adds.<br />

In many ways, the challenges faced<br />

in Canada’s north mirror those faced<br />

in Africa. Both places are remote, short<br />

on funds, and often not very populated.<br />

Fortunately, Huawei already has<br />

extensive first-hand experience in<br />

such environments. In 2017, it launched<br />

289<br />

EXECUTIVE PROFILE<br />

Christopher Pereira<br />

Chris Pereira aims to connect people<br />

to ideas and opportunities through<br />

communication. He is an experienced<br />

media communications and branding<br />

professional from Canada with<br />

15 years of experience in China.<br />

www.businesschief.com


HUAWEI TECHNOLOGIES<br />

290<br />

“WITH HIGH-SPEED<br />

INTERNET, YOU<br />

CAN OPEN AN<br />

ONLINE STORE<br />

OR HELP YOUR<br />

BUSINESS GROW<br />

BEYOND YOUR<br />

OWN COMMUNITY”<br />

—<br />

Christopher Pereira,<br />

Director of Public Affairs,<br />

Huawei Technologies Canada<br />

AUGUST <strong>2019</strong>


291<br />

CLICK TO WATCH: ‘AURORA BOREALIS PROJECT: EP1 – BARBARA’<br />

www.businesschief.com


䰀 䤀 䜀 䠀 吀 一 䤀 一 䜀 䘀 䄀 匀 吀 Ⰰ 刀 伀 䌀 䬀 匀 伀 䰀 䤀 䐀<br />

䠀 唀 䄀 圀 䔀 䤀 伀 挀 攀 愀 渀 匀 琀 漀 爀 䐀 漀 爀 愀 搀 漀<br />

吀 伀 倀 匀 倀 䌀 ⴀ 䈀 夀<br />

倀 䔀 刀 䘀 伀 刀 䴀 䄀 一 䌀 䔀<br />

䠀 甀 愀 眀 攀 椀 匀 琀 漀 爀 愀 最 攀<br />

伀 昀 昀 椀 挀 椀 愀 氀 圀 攀 戀 猀 椀 琀 攀<br />

䔀 ⴀ 洀 愀 椀 氀 㨀 攀 渀 琀 攀 爀 瀀 爀 椀 猀 攀 挀 愀 䀀 栀 甀 愀 眀 攀 椀 ⸀ 挀 漀 洀


CLICK TO WATCH: ‘RURALSTAR LIGHTS THE WAY TO GREATER GROWTH,<br />

HOPE & HEALTH’<br />

293<br />

RuralStar, an affordable base station to<br />

help bring internet connection to<br />

villages in Africa. “Similar to Northern<br />

Canada, we faced a lot of environmental<br />

challenges, though it was the complete<br />

opposite in terms of conditions,”<br />

explains Pereira. “It was very hot and<br />

dry; the equipment needed to be able<br />

to operate in 40-50°C weather and<br />

deal with dust storms and power<br />

issues.” On top of this, Huawei also<br />

has equipment at some of the highest<br />

points in the world, like the base camp<br />

of Mount Everest, so it’s well equipped<br />

to tackle rough terrain.<br />

“ABORIGINAL<br />

CULTURE CAN<br />

BE MAINTAINED<br />

AND FLOURISH<br />

BECAUSE OF<br />

THE CONNECTIVITY<br />

THAT THE INTERNET<br />

BRINGS”<br />

—<br />

Christopher Pereira,<br />

Director of Public Affairs,<br />

Huawei Technologies Canada<br />

www.businesschief.com


HUAWEI TECHNOLOGIES<br />

COMPANY FACTS<br />

• Huawei Technologies<br />

hopes to help connect all<br />

Canadians to high-speed<br />

internet by 2030.<br />

Huawei Technologies has<br />

over 1,100 employees in<br />

Canada, 91% of whom are<br />

Canadian citizens.<br />

294<br />

Huawei Technologies has<br />

over 193,000 employees<br />

around the globe, with more<br />

than 80,000 R&D staff.<br />

Huawei’s equipment is sturdy, reliable<br />

and well made; it’s no wonder that the<br />

firm has dominated the market with its<br />

phone offerings like the new P30<br />

smartphone. “We grow by reflection –<br />

that’s part of the culture of Huawei,”<br />

explains Pereira. “We look at what<br />

we’re doing now and we see what we<br />

can make better in the next iteration.<br />

We’re not afraid to make mistakes,<br />

but we are afraid of repeating those<br />

mistakes. Huawei is very tireless<br />

in its pursuit of innovation.”<br />

“WE GROW BY<br />

REFLECTION –<br />

THAT’S PART OF<br />

THE CULTURE<br />

OF HUAWEI”<br />

—<br />

Christopher Pereira,<br />

Director of Public Affairs,<br />

Huawei Technologies Canada<br />

AUGUST <strong>2019</strong>


295<br />

With over 50 contracts already<br />

signed around the world, the company<br />

is also streaking ahead of its peers<br />

when it comes to 5G. “Huawei is about<br />

12 months ahead of any other company<br />

in terms of end-to-end 5G solutions,”<br />

adds Pereira, highlighting that 5G<br />

will be at least 10 times faster than its<br />

predecessor so you can download<br />

a movie in seconds. It will also support<br />

driverless cars and other IoT networked<br />

devices. The rollout of 5G<br />

will undoubtedly be momentous for<br />

Canada but, with its latest project,<br />

Huawei is taking care not to leave<br />

the rural areas of the country behind.<br />

“In five years’ time, I hope we’ll be doing<br />

this interview over Skype from the<br />

Arctic,” says Pereira. “I hope we will<br />

have high-speed internet across this<br />

great country.”<br />

www.businesschief.com


KPMG:<br />

PRAGMATIC<br />

296<br />

CYBERSECURITY<br />

SOLUTIONS<br />

FOR SMEs<br />

WRITTEN BY<br />

AMBER DONOVAN-STEVENS<br />

PRODUCED BY<br />

JAKE MEGEARY<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

297


KPMG CANADA<br />

LEADING CYBER STRATEGY AND<br />

TRANSFORMATION PROGRAMS FOR<br />

KPMG, DARREN JONES DISCUSSES HIS<br />

EXPERIENCE AS BOTH A CLIENT AND<br />

CONSULTANT IN THE CYBERSECURITY<br />

INDUSTRY, AND HOW THE GLOBAL<br />

CONSULTANCY OFFERS PRAGMATIC<br />

AND SUSTAINABLE SOLUTIONS<br />

298<br />

O<br />

ne is always dealing with several<br />

clients at any time, assisting them with<br />

the different challenges or opportunities<br />

that they may be dealing with,” says Darren<br />

Jones, in leading Cyber Strategy and Transformation<br />

programs for KPMG’s clients. One of<br />

the key factors that make Darren Jones such<br />

a successful consultant for KPMG’s clients<br />

is his desire to empower those around him,<br />

combined with an empathetic understanding<br />

of a client’s experience. Before taking on the role<br />

of Director in the Cybersecurity consulting<br />

practice at KPMG, Jones had been a client of<br />

the firm. He was pleased with the professionalism<br />

and level of service provided by the firm, and now<br />

that he is with KPMG he shares that this background<br />

can be a surprise to those he works with:<br />

“I’ve been the person who’s either been working<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

299


KPMG CANADA<br />

300<br />

“ONE IS ALWAYS<br />

DEALING WITH<br />

SEVERAL CLIENTS<br />

AT ANY TIME,<br />

ASSISTING THEM<br />

WITH THE DIFFERENT<br />

CHALLENGES OR<br />

OPPORTUNITIES<br />

THAT THEY MAY BE<br />

DEALING WITH<br />

—<br />

Darren Jones<br />

Director, Cyber Security Services,<br />

KPMG Canada<br />

together with consultants at implementing<br />

a solution, and occasionally<br />

the one accountable for the budget<br />

that the different consulting teams are<br />

working within.” He continues: “Having<br />

been ‘on the other side’ as a client<br />

of consulting services, I am wary of<br />

recommending or implementing<br />

solutions that don’t have a pragmatic,<br />

lasting value for the client.” This<br />

experience helps enable Jones and<br />

KPMG to deliver a focused and cost<br />

effective solution for all organizations,<br />

but especially SMEs.<br />

Jones’s 20-plus years of work within<br />

consultancy allows him to draw upon<br />

previous experiences to create new<br />

cybersecurity solutions for his clients,<br />

as well as using his broad existing<br />

network to widen KPMG’s clientele.<br />

For Jones, much of his personal sense<br />

of achievement has derived from<br />

supporting his clients in their<br />

technological journeys. He<br />

references working relationships<br />

that span decades with some of<br />

the most innovative creators and<br />

thought leaders in cybersecurity the<br />

world over. “That degree of intellectual<br />

engagement has always been an<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘KPMG CANADA: LET’S DO THIS’<br />

301<br />

exciting aspect of working in this field,”<br />

he remarks.<br />

BECOMING CYBER AWARE<br />

When it comes to cyber awareness,<br />

unfortunately some of Jones’s clients<br />

have come to him only after they have<br />

encountered a threat. “One particularly<br />

worrying detail in the uptick in instances<br />

of ransomware in recent months,”<br />

says Jones, “is the focus toward midsized<br />

and small municipalities, midsized<br />

and even small hospitals, and<br />

some not-for-profit organizations such<br />

as charities. When ransomware<br />

targets a larger scale organization like<br />

a bank or a government department<br />

that’s had access to millions of dollars<br />

to build their cybersecurity, there are<br />

instant response protocols typically<br />

in place. For SMEs and NPOs, however,<br />

security management can be<br />

either minimal or non-existent in some<br />

cases.” These themes around cybersecurity<br />

readiness were also borne<br />

out in KPMG’s recently published<br />

CEO Outlook Survey. To help encourage<br />

preventative measures in place<br />

of reactive ones, Jones shares that<br />

KPMG consultants offer a 15-point tip<br />

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KPMG CANADA<br />

302<br />

and question sheet to SME clients to<br />

help to get them started on the journey.<br />

With the rise of attention that<br />

cybersecurity receives, the demands<br />

on Jones’s team have only grown. Yet<br />

he notes that there has also been a<br />

growing feeling of “cyber fatigue” from<br />

the constant fear mongering from<br />

companies and media over the last<br />

decade. For this reason, Jones says,<br />

KPMG has focused on promoting pragmatism<br />

in cybersecurity and cost<br />

effective, sustainable solutions. To<br />

ensure that a solution is sustainable,<br />

the cyber strategy needs to be communicated<br />

across all levels of a company.<br />

As an example, Jones recently delivered<br />

an awareness talk entitled ‘Cybersecurity:<br />

How You Can Help’ which was presented<br />

to staff at one of KPMG’s long<br />

term municipality clients.<br />

Discussing his experience working<br />

with clients on change management,<br />

which is vital in introducing any new<br />

strategy, Jones comments: “It’s important<br />

to build structures and measures<br />

to ensure the implementation will<br />

proceed with proper acknowledge-<br />

AUGUST <strong>2019</strong>


ment of governance; to ensure the<br />

ongoing vitality of measuring success;<br />

and to have a whole strategy wrapped<br />

around that implementation.” He notes<br />

that putting these elements in place is<br />

key to helping to ensure dialogue with<br />

clients moves beyond empathy into the<br />

practical implementation of solutions.<br />

Jones emphasizes the importance of<br />

not only creating solutions that are<br />

cost effective, but also ensuring a client<br />

feels positive about the future resulting<br />

from the solution: “It’s using that<br />

frame as a way of helping the client<br />

to not only see a positive future, but<br />

visualize what’s positive about the<br />

future for them.” This is particularly<br />

important, he says, as KPMG does<br />

not operate solutions for its clients,<br />

so it is imperative that they are<br />

pleased with and are ready to take<br />

ownership of the result.<br />

EXECUTIVE PROFILE<br />

Darren Jones<br />

Darren is an accomplished IT leader with over 25 years<br />

of experience both in industry and as a consultant. With<br />

demonstrated abilities in motivating and leading<br />

technical personnel, project managers and consultants,<br />

Darren has worked in a diversity of roles — as<br />

Director of the CIO Solutions consulting function at<br />

a large consulting firm, a senior executive and<br />

investor in fintech start-ups, leading the Security &<br />

Critical Infrastructure Solutions function at a major<br />

stock exchange, the VP of Information Security<br />

Solutions for one of the world’s first integrated managed<br />

solutions providers, and as the Senior Manager and lead<br />

for eSecurity Architecture Solutions practice area at a<br />

big 4 firm. This breadth and depth of experience<br />

provides Darren’s clients with a perspective<br />

that is at once strategic and pragmatic.<br />

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KPMG CANADA<br />

304<br />

“KPMG AS A FIRM<br />

CERTAINLY RECOGNIZES<br />

THAT IT WILL HAVE<br />

SUBSTANTIAL NEEDS FOR<br />

TECHNOLOGY AND<br />

AI-DRIVEN SOLUTIONS TO<br />

SUPPORT THE LOCAL<br />

COMMUNITY AND BUILD<br />

SMART CITIES.”<br />

—<br />

Darren Jones<br />

Director, Cyber Security Services,<br />

KPMG Canada<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

305


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“HERE WITHIN KPMG<br />

WE ARE DEVELOPING<br />

A CENTRE OF<br />

EXCELLENCE FOR<br />

CYBERSECURITY<br />

IN MUNICIPALITIES”<br />

—<br />

Darren Jones<br />

Director, Cyber Security Services,<br />

KPMG Canada<br />

EDUCATING ON CYBERSECURITY<br />

To encourage this approach to cyber-<br />

security in consultants and to sustain<br />

knowledge development in the industry,<br />

Darren has been working with York<br />

University to provide mentorship to<br />

students and graduates. Jones started<br />

working as a curriculum advisor to York<br />

University at the beginning of his tenure<br />

with KPMG. “This certificate program<br />

is offered to undergraduate students<br />

who wish to augment their existing<br />

studies by pursuing the specific<br />

certificates being offered, and it was<br />

also being introduced as something<br />

for postgraduate or working professionals<br />

to participate in. We have divided<br />

our curriculum into two segments: one<br />

focused on cybersecurity fundamentals,<br />

and the other on offering an<br />

advanced certificate in cybersecurity.”<br />

Four years on from the program’s<br />

conceptualization, Jones shares that<br />

KPMG has hired one graduate who has<br />

come through the program, Frances<br />

MacTaggart, who affirms the benefits<br />

of the course: “I couldn’t more strongly<br />

recommend the combination of certificates<br />

(Fundamentals and Advanced)<br />

to those who are new to the field,<br />

wishing to make a career change or<br />

those who are wanting to further<br />

prepare for the CISSP designation.<br />

York University’s Cybersecurity<br />

Certificates are an outstanding way<br />

to increase your knowledge and depth<br />

of understanding.”<br />

LOOKING AHEAD<br />

A well implemented cybersecurity<br />

solution ensures that a company can<br />

look forward with confidence at<br />

opportunities to innovate, instead of<br />

focusing on previous errors. As KPMG<br />

looks ahead to the future, Jones<br />

shares that the firm will assist in the<br />

creation of the security foundations of<br />

smart cities. “KPMG as a firm certainly<br />

307<br />

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KPMG CANADA<br />

CA$1.5mn<br />

Approximate<br />

revenue in 2018<br />

1869<br />

Year founded<br />

308<br />

6,500<br />

Approximate number<br />

of employees<br />

AUGUST <strong>2019</strong>


ecognizes that it will have substantial<br />

needs for technology and AI-driven<br />

solutions to support the local community<br />

and build smart cities.” Jones urges<br />

that, as larger cities enlist private and<br />

public sector partnerships to build and<br />

operate smart city solutions, they be<br />

cognizant of the risks. While they will<br />

have their own specific concerns<br />

regarding cybersecurity as individual<br />

organizations, they need to be aligned<br />

by a single, overall strategy that can<br />

manage the public’s expectations and<br />

ensure citizen engagement and trust.<br />

“Here within KPMG in Canada, we are<br />

developing a centre of excellence for<br />

cybersecurity in municipalities,” says<br />

Jones, and with KPMG’s impressive<br />

collection of awards and its pragmatic<br />

focus, the firm is set to cement itself as<br />

a cornerstone in implementing these<br />

cybersecurity strategies.<br />

309<br />

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310<br />

POLARIS<br />

TRANSPORT:<br />

SCALABLE DIGITAL<br />

TRANSFORMATION<br />

OF CORE LOGISTICS<br />

PROCESSES<br />

WRITTEN BY<br />

MARCUS LAWRENCE<br />

PRODUCED BY<br />

JAMES BERRY<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

311


POLARIS TRANSPORTATION GROUP<br />

CTO DAVE BRAJKOVICH DISCUSSES<br />

HOW POLARIS TRANSPORT, VIA<br />

DIGITAL TRANSFORMATION UNIT<br />

NORTHSTAR DIGITAL SOLUTIONS,<br />

IS DRIVING LOGISTICS INNOVATION<br />

312<br />

C<br />

anada’s Polaris Transportation Group,<br />

renowned for its cross-border less than<br />

load (LTL) service, is at the cutting edge<br />

of technological innovation in the supply chain<br />

sector. In January <strong>2019</strong>, the company launched<br />

NorthStar Digital Solutions (NDS), both an in-house<br />

digital laboratory and separate business entity, to<br />

drive the advancement of its technology platforms,<br />

intelligent document processing, Robotic Process<br />

Automation (RPA), Machine Learning (ML), Artificial<br />

Intelligence (AI), Internet of Things (IoT) and<br />

Distributed Ledger Technology (DLT) capabilities,<br />

among others.<br />

Dave Brajkovich, CTO at Polaris and NDS, says<br />

the new company offers Polaris, as both a customer<br />

and an owner, a level of innovative dedication that is<br />

demonstrably lost by internal and integral IT teams<br />

attempting to steer a digital transformation. “It’s not<br />

uncommon that, under one IT wing, things can<br />

quickly become disjointed – IT begins to manage<br />

network, infrastructure, application, and helpdesk<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

313


POLARIS TRANSPORTATION GROUP<br />

314<br />

“WE’VE PROVEN THAT WE<br />

CAN TAKE A COMPANY<br />

THAT FROM A VERY<br />

SEGREGATED, SILOED<br />

SYSTEM TO A COMPANY<br />

THAT IS LEAN, EFFICIENT<br />

AND TECHNOLOGICALLY<br />

SCALABLE”<br />

—<br />

Dave Brajkovich,<br />

CTO, Polaris Transport<br />

which distracts from a focused transformation,”<br />

he explains. “We saw an<br />

opportunity to drive technology and<br />

optimization as a separate entity, and<br />

become a profit center that can take<br />

the solutions we’re providing to Polaris<br />

and package them up as Software-asa-Service<br />

(SaaS) solutions for transportation<br />

and customs brokerage clients,<br />

and beyond.” The close relationship<br />

between Polaris and NDS enables a<br />

flexible and practical testbed for<br />

innovation, with newly developed<br />

solutions being piloted, tested and<br />

production hardened at Polaris before<br />

AUGUST <strong>2019</strong>


eing sold on to external companies.<br />

“We end up learning a lot from these<br />

programs and enhancing the technology<br />

to fit and solve business needs<br />

rather than creating technology and<br />

finding a problem to solve.”<br />

A main staple for Polaris is customs<br />

document processing for clearing<br />

freight to cross the US and Canadian<br />

borders, and this offers a perfect<br />

example of the company’s successful<br />

transformation efforts. As this can carry<br />

myriad complexities and duplication<br />

in work efforts, Polaris needed to<br />

streamline the task and reduce the<br />

touchpoints of handling paperwork.<br />

The process of moving paper is highly<br />

inefficient and labor intensive for all<br />

players involved, including the Client,<br />

Carrier, Customs Broker and Border<br />

Agencies. “By implementing our RPA<br />

and ML platform (a powerful WorkFusion<br />

enterprise grade automation engine<br />

with the NDS IP workflow solution),<br />

to manage Straight Through Processing<br />

(STP) for our intelligent document<br />

processing, our turnaround time and<br />

error rates were significantly reduced<br />

to levels beyond our expectations,”<br />

says Brajkovich. “It also added capacity 315<br />

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POLARIS TRANSPORTATION GROUP<br />

316<br />

for our staff to focus on exception<br />

management rather than clerical administration.<br />

We can now run this operation<br />

24/7 and scale to the business order<br />

demands, and we’re proud to state that<br />

we are now driving 80% of our customs<br />

paperwork processing through fully<br />

automated workflow.”<br />

Of the aforementioned technologies,<br />

Polaris’s DLT platform is perhaps the<br />

most emblematic of the firm’s ability<br />

to bring complex concepts through to<br />

fruition quickly and effectively. “Our<br />

CEO, Dave Cox, had an inkling to learn<br />

more about blockchain,” says Brajkovich.<br />

Following an event that illuminated the<br />

tech’s qualities, Cox began to see a<br />

potential use case for it within Polaris.<br />

The firm subsequently partnered with<br />

IBM to generate various DLT-based<br />

solutions applicable to their operations,<br />

with significant success. “One of our<br />

use cases for a minimal viable product<br />

was an outcome to achieve consolidation<br />

and reconciliation for the interline<br />

invoicing process,” says Brajkovich.<br />

“We found that the process was lagging,<br />

though not in terms of digitizing the data<br />

AUGUST <strong>2019</strong>


EXECUTIVE PROFILE<br />

Dave Brajkovich, CTO<br />

Brajkovich’s technology career spans 30 years and has mainly<br />

been focused on engineering, designing and building core<br />

transactional systems for some of the world’s leading fortune<br />

500 companies. With key strengths in leadership and<br />

management of multi-talented teams he has excelled in moving<br />

the needle continuously by ensuring practical deployments<br />

of technology with a direct impact on improving operational<br />

workflows along with providing an enhanced client experience<br />

as the ROI. Brajkovich has been an influential change agent for<br />

technological improvements, such as advanced planning and<br />

scheduling, manufacturing, distribution/supply chain and<br />

financial applications. With exposure to multi diverse markets,<br />

engineering, manufacturing, healthcare, energy, financial<br />

investment management and transportation has given<br />

Brajkovich a rounded edge to be a key player and contributor<br />

for advanced technology offerings and helping business<br />

understand and adopt enablers for future growth and<br />

advancements. Brajkovich’s focus is to strengthen and maintain<br />

a robust technical ecosystem for the enterprise group and its<br />

affiliated companies, making it a uniquely different provider<br />

of freight services and lifecycle management with enhanced<br />

digital product capabilities. Emphasis will be placed<br />

on bleeding edge technologies such as Robotic Process<br />

Automation, Machine Learning, AI, and Blockchain. Recent<br />

positions held include Executive Director roles with Sun Life<br />

Canada, Air Liquide and Dynacare Labs where his focus was on<br />

IT technology foundations and business application synergies.<br />

Brajkovich lives in Hockley Valley, Ontario with his wife and<br />

two daughters. His additional interests include assembly and<br />

operation of drone helicopters and he is an avid motorcyclist.<br />

317<br />

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“WHAT WE’VE CREATED<br />

IS A UNIVERSAL<br />

SYSTEM WHERE WE<br />

CAN GUARANTEE THAT<br />

MY A IS THEIR A”<br />

—<br />

Dave Brajkovich,<br />

CTO, Polaris Transport<br />

because it moves through electronic<br />

data interchange (EDI) transformations<br />

anyway. The challenge is that EDI is<br />

not dynamic – it’s very static, it comes<br />

in batches and waves – and so the<br />

freight can be received by points of<br />

delivery where we may not get the<br />

data back into our systems accurately<br />

or in a timely fashion.”<br />

This problem causes both delays and<br />

a labor-intensive process of collating<br />

documents to confirm payments, with<br />

those documents changing hands<br />

repeatedly. The solution is a DLT-based<br />

smart contract platform that runs<br />

those transactions through Polaris’s<br />

hyperledger cloud and relays the data<br />

to all relevant parties. “What we’ve<br />

created is a universal system where<br />

we can guarantee that my A is their A,”<br />

says Brajkovich, highlighting DLT’s<br />

ability to serve as a single, current<br />

source of truth. “Everything is tracked<br />

and traced: it’s immutable, it’s not<br />

going to change, but it can be revised.<br />

As the information flows from one<br />

system to another, we know exactly<br />

where that data flow is.” Not only does<br />

the solution provide this reliability and<br />

traceability, but it massively increases<br />

the speed with which parties can<br />

access the relevant information.<br />

“Once the transaction is completed,<br />

we have a full audit trail,” summarizes<br />

Brajkovich. He adds that the process<br />

minimizes paper wastage, maximizes<br />

accuracy and eradicates data-based<br />

disputes, as well as having the<br />

flexibility for additional partner<br />

channels to be added as necessary.<br />

NDS is currently developing additional<br />

IoT-driven solutions to augment with<br />

this process, offering real-time tracking<br />

data without necessitating additional<br />

human input. “Our claim to fame here is<br />

that we’re very strong integrators,” says<br />

Brajkovich as he explains the foundation<br />

of the firm’s IoT success. “We have<br />

talent that understands not only the<br />

319<br />

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POLARIS TRANSPORTATION GROUP<br />

320<br />

operations and processes involved with<br />

the transportation and LTL freight<br />

movement, but we have a very strong<br />

enterprise service technology layer<br />

that enables us to connect multiple<br />

technologies and platforms through<br />

APIs (application programming<br />

interfaces).” With IoT naturally creating<br />

numerous endpoints at the edge of the<br />

network, this knack for integration<br />

significantly accelerates NDS’s and<br />

Polaris’s time to market for additional<br />

IoT capabilities. “Currently, we are<br />

active through an IoT process for our<br />

electronic logging devices (ELDs), used<br />

for truck driver mandates and tractor<br />

data logging. We capture data from the<br />

ELDs, as well as from Blackberry<br />

devices tracking our trailers’ capacity,<br />

volume and location. We have between<br />

160 and 180 trailers, and they’re all<br />

tracked.” The data is routed back<br />

through the company’s legacy API<br />

system, exemplifying the company’s<br />

ability to integrate technological<br />

solutions successfully. Looking forward,<br />

Brajkovich says NDS’s IoT ambitions<br />

are yet to be satisfied, and plenty of<br />

exciting new innovations are on the way.<br />

The firm is piloting a new product that<br />

tracks drivers’ locations through their<br />

AUGUST <strong>2019</strong>


1994<br />

Year founded<br />

200<br />

Approximate number<br />

of employees<br />

HQ<br />

Mississauga, Ontario<br />

Canada<br />

mobile devices, enabling visibility of<br />

delivery routes, delivery cycles, and<br />

access to various timeframes for cycle<br />

completion. “It’s quite revolutionary<br />

in commercial freight movements,”<br />

says Brajkovich. “Most clients don’t get<br />

that kind of visibility. They have to call<br />

customer services, who themselves<br />

have to track those trucks and have<br />

more room for inaccuracy. This way, it’ll<br />

be a holistic view of where our trucks<br />

are.” In addition to this novel approach<br />

to visibility for clients, NDS is developing<br />

a brand new form of IoT technology.<br />

“We’re working with a couple of GPS<br />

manufacturers to develop a disposable<br />

GPS tracking device that we could<br />

directly tag to the freight, as well as<br />

working with telco companies that<br />

could provide us with low-cost cell<br />

coverage at a palatable price point that<br />

clients can absorb,” enthuses Brajkovich.<br />

“In return, they would get active<br />

tracking at the freight level.” He notes<br />

that perhaps the most vitally innovative<br />

element of this research and development<br />

is the proposed disposability.<br />

“When it is received at the last mile, the<br />

GPS will simply turn off as its battery<br />

expires and can then be easily disposed<br />

of,” he says. Enabling visibility in such<br />

321<br />

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POLARIS TRANSPORTATION GROUP<br />

322<br />

“THE ABILITY FOR US TO BE<br />

ABLE TO LOOK INTERNALLY<br />

AND EXTERNALLY, AND<br />

REALLY PRIORITIZE THE<br />

MOST VITAL PROJECTS<br />

MEANS WE CAN LEAP<br />

INSTEAD OF BABY-STEP<br />

EVERYTHING THROUGH”<br />

—<br />

Dave Brajkovich,<br />

CTO, Polaris Transport<br />

a dynamic, seamless fashion would<br />

stand to differentiate the firm’s prowess<br />

even further from the competition.<br />

Ultimately, Brajkovich credits NDS<br />

and the strength of its partnerships with<br />

the success of Polaris’s technological<br />

innovations. “NDS, powered by strong<br />

partners like WorkFusion, Softchoice,<br />

Stratiform, Simnet and Fiorano has<br />

enabled us to launch some really<br />

dynamic offerings using tools that<br />

might not be at the bleeding edge,<br />

AUGUST <strong>2019</strong>


323<br />

but certainly within the cutting edge,”<br />

he says. “We’ve proven that we can<br />

take a company from a very segregated,<br />

siloed system that’s hard to integrate<br />

and communicate within, to a company<br />

that is lean, efficient and technologically<br />

scalable. The ability for us to be<br />

able to look internally and externally,<br />

and really prioritize the most vital<br />

projects means we can leap instead of<br />

baby-step everything through.” Polaris<br />

Transport, in that regard, has landed<br />

upon a holy grail of digital transformation:<br />

agility, scalability, and a time to<br />

market that brings core innovations to<br />

the fore, benefitting both the company<br />

and its all-important clients.<br />

www.businesschief.com


324<br />

SSR MINING:<br />

LEVERAGING<br />

TECHNOLOGY<br />

AMIDST<br />

TRANSFORMATION<br />

IN THE MINING<br />

SPACE<br />

WRITTEN<br />

BY<br />

SEAN GALEA-PACE<br />

PRODUCED BY<br />

JAMES BERRY<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

325


SSR MINING INC.<br />

DAVID THOMAS, DIRECTOR OF IT<br />

AT SSR MINING, DISCUSSES HOW<br />

TECHNOLOGY HAS BECOME AN<br />

INFLUENTIAL COMPONENT TO<br />

OPERATIONS SINCE FIRST BEING<br />

EMBRACED IN 2013<br />

326<br />

A<br />

s a firm that has undergone significant<br />

transformation over the past few years,<br />

SSR Mining knows first hand the importance<br />

of embracing the latest trends in order to stay<br />

ahead of competitors. With the increasing influence<br />

technology has had on industries the world over,<br />

SSR Mining has come a long way since it first<br />

began to leverage new software and processes<br />

in 2013. David Thomas, Director of IT at SSR Mining,<br />

believes that, due to its smaller stature in comparison<br />

to bigger companies in the region, his firm has<br />

utilised this to its advantage. “The key benefit of<br />

how we operate is that we’re smaller. Leveraging<br />

infrastructure, such as cloud services that we don’t<br />

have to invest large capital in, makes us nimbler,”<br />

he says. “This means that a few years later, if we<br />

want to change and do something that’s slightly<br />

different because of new technology, we have the<br />

capabilities to do that. If you compare that to bigger<br />

companies, a lot of them have invested hundreds<br />

of millions of dollars in capital to build infrastructure,<br />

however, then they’re locked in. The landscape has<br />

changed for us smaller companies as we can get in<br />

AUGUST <strong>2019</strong>


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327


SSR MINING INC.<br />

“THE KEY BENEFIT<br />

OF HOW WE<br />

O PER ATE I S TH AT<br />

WE’RE SMALLER”<br />

—<br />

David Thomas,<br />

Director of IT, SSR Mining<br />

328<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘MARIGOLD MINE’<br />

329<br />

there and do what we want and move<br />

with the times – I think it means we’re<br />

really lucky and in a really great place.”<br />

Based in Vancouver, Canada, the<br />

mining firm focuses on the operation,<br />

acquisition, exploration and development<br />

of precious metal resource properties<br />

in the Americans and oversees three<br />

producing mines: Marigold in Nevada;<br />

Seabee Gold Operation in Saskatchewan;<br />

and the 75% owned and<br />

operated Puna Operations joint<br />

venture in Jujuy Province, Argentina.<br />

Since its launch in 1989, the Marigold<br />

mine achieved production of over<br />

205,000 ounces of gold in 2018.<br />

The Seabee Gold Operation produced<br />

over 95,000 ounces of gold in 2018,<br />

and Puna Operations achieved<br />

commercial production in December<br />

2018 and produces silver.<br />

Thomas points to SSR Mining’s<br />

ability to combine a proactive and<br />

reactive approach that differentiates<br />

his company from its rivals. “We’re<br />

quite fortunate because we can be<br />

followers and leaders,” explains<br />

Thomas. “In 2013, we invested a little<br />

bit of money into the cloud despite our<br />

size and the fact we were operating<br />

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SSR MINING INC.<br />

330<br />

just one mine at the time. Our move<br />

towards the cloud gave us the opportunity<br />

to move around our technology<br />

for various projects, such as predictive<br />

analytics or general artificial intelligence<br />

(AI) and machine learning (ML)<br />

type projects.” With mining often<br />

considered as one of the slower<br />

industries to adopt new technology,<br />

it wasn’t until 2013 when SSR Mining<br />

really put its foot down towards<br />

digitalisation. “Back then, we had no<br />

tech. We had an email system and<br />

that’s pretty much it. But, one thing<br />

we saw back then was the fact that we<br />

could seize the opportunity to move<br />

into the cloud. When we acquired our<br />

second mine operation, Marigold, we<br />

were positioned to start moving that<br />

operation’s IT into the cloud straight<br />

away. During the acquisition, we began<br />

to transition from the previous owners’<br />

technology to the cloud. As Amazon<br />

and Azure introduced new things, we<br />

were able to take advantage of some<br />

of those new tools and features in our<br />

other operation too.”<br />

Looking back to how operations<br />

AUGUST <strong>2019</strong>


were previously conducted prior to<br />

new technology being introduced,<br />

Thomas acknowledges the challenges<br />

he’s faced over the years. “Previously,<br />

we didn’t have an Operational Excellence<br />

team like we do today,” he says.<br />

“Making that connection with the<br />

business was a big challenge because<br />

we’ve got IT-orientated people and<br />

then at the other end of the scale are<br />

mining-focused people, too. For us,<br />

we had to bring those teams on the<br />

extreme ends together and talk about<br />

the challenges. For example, our<br />

Marigold mine has a dispatch system,<br />

331<br />

EXECUTIVE PROFILE<br />

David Thomas, Director of IT<br />

After six years of Civil Engineering and running a high-rise<br />

building computer design department in the mid 90s,<br />

Thomas graduated from the University of Technology in<br />

Sydney with an Engineering Degree and a Masters Degree in<br />

Engineering Management. After graduation he quickly moved<br />

into the Information Technology field in Melbourne Australia,<br />

working in the bill payment and consulting industries,<br />

before moving to Canada in 2005 where he led numerous IT<br />

departments and IT Consulting teams in mining, shipping,<br />

forestry and finance. With a deep background and education<br />

in both Engineering and Information Technology,<br />

Thomas provides both IT leadership and strategic IT<br />

transformation for SSR Mining Inc.<br />

www.businesschief.com


SSR MINING INC.<br />

$400mn+<br />

Approximate<br />

revenue<br />

1946<br />

Year founded<br />

332<br />

14,000+<br />

Approximate number<br />

of employees<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

333


Manage, Solve,<br />

and Deliver I.T.<br />

We take pride in putting our customer<br />

service front and foremost by creating<br />

simple solutions for complex connections.<br />

Discover your solution


similar to a taxi that tracks the destination<br />

of where you’re going. It’s important<br />

that we implement the right software<br />

that will enable us to improve. We had to<br />

have a much more conducive approach,<br />

and being able to do that gave us the<br />

ability to enhance our processes and<br />

automate emergency systems so that,<br />

if there’s a problem out on site, they can<br />

press a button and get support.”<br />

Having partnered with tech giants<br />

such as Microsoft and Amazon Web<br />

Services (AWS), Thomas believes what<br />

makes a successful partnership is the<br />

“LEVERAGING<br />

INFRASTRUCTURE,<br />

SUCH AS CLOUD<br />

S ERV I C ES TH AT<br />

WE DON’T HAVE<br />

TO INVEST LARGE<br />

CAPITAL IN, MAKES<br />

US NIMBLER”<br />

—<br />

David Thomas,<br />

Director of IT, SSR Mining<br />

335<br />

www.businesschief.com


SSR MINING INC.<br />

336<br />

ability to understand what the other<br />

expects. “A good partnership will<br />

involve mutual communication at all<br />

times and a joint ability to deliver<br />

something that works well together.<br />

I know when it comes to some of these<br />

smaller AWS or Azure partners, we<br />

would choose a vendor that has the<br />

skills and abilities internally to do the<br />

job, but that can also align with our<br />

nimbleness,” he explains. “A lot of our<br />

infrastructure dovetails into Microsoft<br />

and AWS. Amazon can give us a nice<br />

little angle in terms of IoT endpoints<br />

and it offers us a much larger vendor<br />

footprint, too. With AWS, we would get<br />

involved with the cyber types when<br />

it comes to industrial.”<br />

With a determination to not rest<br />

on its previous successes, Thomas<br />

affirms SSR Mining isn’t at the finish<br />

line yet and he still considers it a small<br />

and medium-sized enterprise (SME),<br />

despite revenues of over $400mn in<br />

2018. “In mining terms, our revenue is<br />

relatively small. I think once you get<br />

into the $2-4bn range of market<br />

capitalization, that’s when you can be<br />

AUGUST <strong>2019</strong>


considered a big company. In terms<br />

of market capitalization, we’re currently<br />

around $2bn so we’re not quite there<br />

yet. I almost consider us like a shopping<br />

advert – we do more for less.” Looking<br />

to the future, Thomas has clear ideas<br />

about how his organisation can<br />

continue to thrive in the mining space<br />

over the next few years and beyond.<br />

“I’m sure the gold industry will drive<br />

the success of the company through<br />

mergers and acquisitions; however,<br />

in terms of our operations, I believe<br />

our workforce and the safety of our<br />

workforce is a key aspect for success,”<br />

he notes. “It’s about ensuring strategic<br />

objectives are aligned with the<br />

operation base and being able to work<br />

closely with the teams that we have<br />

recently developed in the last two to<br />

three years, such as the Operational<br />

Excellence team. We need to evolve<br />

as well as help with sustainability in the<br />

next couple of years.”<br />

337<br />

www.businesschief.com


338<br />

ASCENDANT<br />

RESOURCES<br />

rejuvenation<br />

through<br />

Mining 101<br />

WRITTEN BY<br />

MARCUS LAWRENCE<br />

PRODUCED BY<br />

RICHARD DEANE<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

339


ASCENDANT RESOURCES<br />

Chris Buncic, CEO and<br />

Co-Founder at Ascendant<br />

Resources, discusses the<br />

rejuvenation of the El Mochito<br />

mine in Honduras and the<br />

Mining 101 approach that<br />

has powered its success<br />

340<br />

T<br />

he El Mochito mine, located in the Las<br />

Vegas municipality of Honduras and<br />

around 88km southwest of San Pedro<br />

Sula, has undergone a dramatic rejuvenation at the<br />

hands of Ascendant Resources which acquired<br />

the site in December 2016. Under Ascendant’s<br />

management, El Mochito’s zinc production has<br />

doubled and its revenues are growing rapidly.<br />

Not only that, Ascendant has become the leading<br />

miner in Honduras, a country whose mining<br />

potential has been sorely overlooked according<br />

to CEO Chris Buncic. He earmarks both capital<br />

investment and the shift in management styles that<br />

defined the takeover as being of vital importance<br />

to the mine’s renaissance. “After we closed the<br />

acquisition, we set upon a program of optimization<br />

and rehabilitation of the asset, as well as retraining<br />

operators,” says Buncic. “It was a very peoplefocused<br />

change.” In tandem with introducing an<br />

array of new equipment – a long overdue endeavor<br />

at El Mochito – Ascendant brought the mine to free<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

341


ASCENDANT RESOURCES<br />

“As we ramped up<br />

production, people<br />

have reaped the<br />

benefits through<br />

incentives”<br />

—<br />

Chris Buncic,<br />

President, CEO and Co-Founder,<br />

Ascendant Resources<br />

342<br />

2006<br />

Year founded<br />

$85.6mn<br />

Revenue in 2018<br />

1,242<br />

Approximate number<br />

of employees<br />

cashflow positivity within a year of<br />

closing the deal.<br />

Ascendant has approached the<br />

project with a ‘Mining 101’ mentality,<br />

zeroing in on the basics to ensure<br />

any additional developments are built<br />

upon strong and efficient foundations.<br />

“We assembled a new management<br />

team that has performed consistently<br />

over the last two and a half years, and<br />

we replaced nearly all of the underground<br />

trackless equipment,” says<br />

Buncic. “Some of the trucks and<br />

scoops had been subject to as many<br />

AUGUST <strong>2019</strong>


CLICK TO WATCH: ‘ONE X ONE WITH CHRIS BUNCIC,<br />

ASCENDANT RESOURCES PRESIDENT AND CEO’<br />

343<br />

as four overhauls; in a typical lifecycle,<br />

this would only have been done twice,<br />

but because of their age we were<br />

having availability issues. The key<br />

metrics of the journey have been<br />

availability of the equipment and its<br />

proper and consistent utilization.”<br />

It is equally essential to have both<br />

equipment at hand when it is needed,<br />

and trained staff who are available<br />

to capitalize on it. “We added a fourth<br />

shift underground for the truck drivers,<br />

meaning there are now four overlapping<br />

eight-hour shifts. Those shifts<br />

are staggered over the course of the<br />

day, and changeovers at the truck<br />

underground rather than on surface.<br />

This cuts out travel time, meal times<br />

and so on, and has resulted in productivity<br />

time increasing from 15 to 22<br />

hours per day.” Simply adding additional<br />

work hours is far from the sum of<br />

Ascendant’s work with its staff. “In the<br />

five years prior to the acquisition, there<br />

had been six general managers each<br />

with their own priorities and projects,”<br />

explains Buncic, highlighting the<br />

general sense of uncertainty and lack<br />

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of clear direction to which workers at<br />

El Mochito had become accustomed.<br />

Not only has the new and successful<br />

management team brought a fresh<br />

era of stability, but Ascendant has<br />

also been proactive in its approach<br />

to supporting staff significantly<br />

improving morale. “In 2017, we<br />

renegotiated our collective bargaining<br />

agreement with the workers’<br />

union, which had been long overdue.<br />

They were unhappy with the situation<br />

before we took over, so we had lots<br />

of positive benefits come through<br />

that,” says Buncic. “As we ramped up<br />

production, people have reaped the<br />

benefits of the higher production<br />

rates through incentives. Everyone is<br />

happy in sharing the success of the<br />

mine, and it’s certainly something<br />

we’re happy to continue to foster.”<br />

This attentiveness to its employees<br />

EXECUTIVE PROFILE<br />

Chris Buncic, President, CEO and Co-Founder<br />

Chris Buncic is one of the founding partners in the formation<br />

of Ascendant Resources Inc. and its acquisition of the<br />

company’s flagship operating El Mochito mine from<br />

Nyrstar NV in 2016. Prior to cofounding Ascendant,<br />

Mr. Buncic served in senior management roles at<br />

several Canadian corporations in the technology and<br />

resources sectors. His depth of experience also includes<br />

six years in Institutional Equity Research at leading<br />

Canadian independent full-service brokerage firms<br />

Cormark Securities Inc. and Mackie Research Capital<br />

Corporation. Mr. Buncic is a CFA Charterholder, has<br />

an MBA from Schulich School of <strong>Business</strong> and<br />

B.A.Sc. from the University of Toronto. Mr. Buncic<br />

is a member of the Professional Engineers of<br />

Ontario and the CFA Society.<br />

345<br />

www.businesschief.com


ASCENDANT RESOURCES<br />

346<br />

“We brought in a new<br />

management team<br />

that has performed<br />

consistently over the<br />

last three years, and<br />

we replaced nearly<br />

all of the underground<br />

trackless equipment”<br />

—<br />

Chris Buncic,<br />

President, CEO and Co-Founder,<br />

Ascendant Resources<br />

AUGUST <strong>2019</strong>


www.businesschief.com<br />

347


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349<br />

extends to the local municipality<br />

through a range of highly successful<br />

corporate social responsibility (CSR)<br />

initiatives. In each of the past 10 years,<br />

El Mochito mine has won the prestigious<br />

Empresa Socialmente Responsible<br />

(‘Socially Responsible <strong>Business</strong>’)<br />

award from the Foundation for<br />

Corporate Responsibility in Honduras<br />

(FUNDAHRSE). “We give back<br />

to communities to a very large degree,”<br />

enthuses Buncic. “We operate<br />

a hospital and two schools, and we<br />

run smaller programs with respect to<br />

school lunches and environmental<br />

efforts. We have 11,000 hectares of<br />

forestland on our property, and we<br />

do a lot of reforestation and environmental<br />

preservation on that land.”<br />

As for the mine itself, incremental<br />

infrastructural upgrades have been<br />

vital to the leap in production, the sharp<br />

rise in the quality of the ore produced,<br />

and the efficiency with which that<br />

produce is brought to the surface.<br />

“We have been able to access some<br />

new high-grade areas of the mine that<br />

were not previously available, and our<br />

www.businesschief.com


ASCENDANT RESOURCES<br />

350<br />

grade has improved materially from<br />

5.3% when we took over the mine to<br />

as high at 7% in Q4 2018,” says<br />

Buncic. Part of this success can be<br />

traced to Ascendant’s Lagoa Salgada<br />

mining project in Portugal, itself<br />

located within the famed Iberian<br />

Pyrite Belt. “At Lagoa Salgada, we<br />

conducted gravity and induced<br />

polarization (IP) work which we found<br />

to be very effective in finding additional<br />

anomalies and targets to follow<br />

up. We brought the same group that<br />

conducted that study over to El<br />

Mochito, and their underground,<br />

gravity and IP studies have opened<br />

up the potential of the western part<br />

of the mine.”<br />

In February of this year, the company<br />

completed a 700-meter tunnel from<br />

the Esperanza ore body in the<br />

northwest of the mine to the crusher.<br />

The tunnel provides a more direct<br />

route between the sites, circumventing<br />

the original winding route comprised<br />

of rough terrain. Not only has<br />

this opened up a previously unexplored<br />

part of the mine and minimized<br />

the wear and tear of the associated<br />

machinery, but it is emblematic of the<br />

AUGUST <strong>2019</strong>


“One of the things<br />

our team has been<br />

good at is identifying<br />

new opportunities”<br />

—<br />

Chris Buncic,<br />

President, CEO and Co-Founder,<br />

Ascendant Resources<br />

351<br />

www.businesschief.com


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353<br />

infrastructural upgrades that have<br />

been pivotal in the mine’s rejuvenation.<br />

“It’s a good example of the ways that<br />

our team is strategizing as it looks to<br />

find high-grade material to bring into<br />

the mine plan as soon as possible,”<br />

says Buncic.<br />

In the long term, Buncic stresses<br />

that Ascendant’s commitment to<br />

maximizing the value of El Mochito<br />

is far from over. Whilst maintaining<br />

the production rates it has achieved,<br />

continuing to seek out high-grade<br />

ore bodies and evaluating areas where<br />

costs can be saved, Ascendant is<br />

“In 2017, we<br />

renegotiated<br />

our collective<br />

bargaining<br />

agreement with<br />

the workers’<br />

union, which<br />

had been long<br />

overdue”<br />

—<br />

Chris Buncic,<br />

President, CEO and Co-Founder,<br />

Ascendant Resources<br />

www.businesschief.com


ASCENDANT RESOURCES<br />

354<br />

“It was a<br />

very peoplefocused<br />

change”<br />

—<br />

Chris Buncic,<br />

President, CEO and Co-Founder,<br />

Ascendant Resources<br />

working hard to boost its profitability<br />

per ton. With respect to this, Buncic<br />

highlights the expansion plan posited<br />

in a Preliminary Economic Assessment<br />

(PEA) released in October 2018 that<br />

seeks to cut costs to below $1 per<br />

zinc equivalent pound. The plan is<br />

split into three components: opening<br />

a more direct mine shaft in the east<br />

of the mine; installing a large and<br />

efficient water pumping system with<br />

AUGUST <strong>2019</strong>


355<br />

clarification capabilities; and expanding<br />

the plant to bring its capacity up<br />

to an average of 2,800 tons per day,<br />

boosting the mill’s production by 27%<br />

while simultaneously cutting costs by<br />

the same margin. “One of the things<br />

our team has been good at is identifying<br />

new opportunities,” says Buncic.<br />

“We’ve done that with El Mochito,<br />

we’ve done it with Lagoa Salgada.<br />

In the mining space today, there are<br />

a lot of great opportunities, and we<br />

have an excellent network of partners<br />

who want to work with us across the<br />

financial gamut as we look to grow<br />

the company.”<br />

www.businesschief.com

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