Business Chief USA August 2019
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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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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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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 />
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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 />
www.businesschief.com
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 />
It’s a pillar of our business practices.<br />
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A leading manufacturer of protective materials<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 />
Raw Materials, All Over Again Since 1918<br />
At PMR our mission is to reintroduce useful raw<br />
materials for the metals and plastics industries,<br />
reduce the scrap generator’s waste stream and play<br />
a major role in the greening of our environment.<br />
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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puts the same driver on the<br />
same route every day ensuring<br />
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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 />
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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>
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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 />
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SMART CHANGE STARTS HERE.<br />
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PROVIDING THE STAFFING TO<br />
SUPPORT THESE OFFICES WITH<br />
THE HIGHEST LEVEL OF SERVICE.”<br />
- Chris Bendowski, VP of Real Estate and Facilities, Dentsu Aegis<br />
Canon Solutions America provides world-class products<br />
and services that enable you to collaborate in real time,<br />
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800-788-5795<br />
CSA.CANON.COM/GLOBALMANAGEDSERVICES<br />
Canon is a registered trademark of Canon Inc. in the United States and elsewhere. All other referenced<br />
product names and marks are trademarks of their respective owners and are hereby acknowledged.<br />
© <strong>2019</strong> Canon Solutions America, Inc. All rights reserved. 6/19-540<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 />
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© <strong>2019</strong> Presidio, Inc. All rights reserved. Proprietary and Confidential.<br />
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 />
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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
Be Future Ready.<br />
Outpace Change.<br />
With student success a top-of-mind issue for the<br />
higher education industry, institutions are poised<br />
to have their day in the sun—proving not just their<br />
academic worth but their strategic value as well.<br />
To make good on that promise and thrive in the<br />
digital age, institutions must stay ahead of the<br />
fast-changing forces that are driving new educational<br />
models, a student-minded culture and new<br />
ways of working. They must Be Future-Ready and<br />
Outpace Change.<br />
The focus for many institutions is on improved<br />
student outcomes, which means retaining students<br />
in any possible way for them to reach their<br />
academic goals. But this requires many human<br />
resources, engaged faculty and skilled talent.<br />
Catering to your students also means that institutions<br />
and their workforces have the right insight<br />
and data at their fingertips to advise students<br />
properly. Answering the many student inquiries—<br />
from common to more complex financial aid questions—can<br />
be time-consuming, and often ends up<br />
being costly to institutions.<br />
How do you stay ahead in a world that is changing<br />
faster than ever? Human intelligence alone isn’t<br />
enough. Innovations in AI, machine learning and<br />
digital assistants are analyzing data, providing<br />
answers, and suggesting next steps to help<br />
students and employees respond in minutes, not<br />
weeks or months. Predictive analytics are forecasting<br />
multiple scenarios to help institutions be<br />
ready for future disruptions. Human resources,<br />
finance, and student-focused offices will play a<br />
pivotal role in building a future-ready institution<br />
that can not only withstand change, but outpace it.<br />
Digital transformation is a challenge for any<br />
institution. In the past, most have relied on disparate,<br />
on-premises solutions designed to serve<br />
specific purposes. This meant that processes for<br />
core functions like recruiting, talent management,<br />
financial aid management, and financial planning<br />
and budgeting were carried out in different systems.<br />
With no integration—and no single system<br />
of record—processes were disconnected, ease of<br />
use was impeded, user experience was diminished,<br />
and vital data was left untapped.<br />
Many institutions thought they could solve the<br />
challenge by simply performing a “lift and shift” of<br />
their on-premises solutions to a cloud infrastructure.<br />
While this model can reduce costs, it does<br />
not help with innovation of student interactions<br />
and processes themselves.<br />
Hear how Butler University decided to<br />
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Outpace Change.<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 />
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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 />
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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 />
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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 />
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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 />
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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>
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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 />
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You can count on Ameresco to capture the benefits of clean<br />
energy, while creating a better, sustainable community. This<br />
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We leverage creative financing options and capital creation<br />
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©<strong>2019</strong> Ameresco, Inc. Ameresco and the Ameresco logo, the orb symbol and the tagline “Green. Clean. Sustainable.” are registered in the U.S. Patent and Trademark Office. All rights reserved.
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 />
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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 />
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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 />
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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>
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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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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>
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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 />
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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 />
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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>
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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 />
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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 />
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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 />
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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 />
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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