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The catalyst for Digital Transformation
Sanjeev Kumar Singh, Managing Director, Spectrum Networks
Not every business has benefited from digital transformation, but one company knows how to change the fortunes of many.
Digital transformation has fundamentally altered the way companies across all sectors operate. For the most part, the transformation of the past two decades has brought benefits in the form of greater efficiency, more effective project management, heightened capacity for innovation, and more. But for those who have struggled to harness the powers of new technology, life hasn’t been easy.
The Covid-19 pandemic has brought the impact of this shift into sharper focus than ever before. Some estimate that the lockdowns of 2020 and 2021 caused the pace of digital transformation to speed up by seven years, largely as a result of the transition by consumers to online channels and the requirement that people working remotely be technologically literate.
Yet not all have prospered, and the gap between companies who have been able to master the ins and outs of digitisation and those who haven’t has widened. Inflexible work cultures, slowness at upskilling employees and fear of change have combined to make digital transformation not the great equaliser that many thought it would be, but rather the driving force behind a disparity in the fortunes of companies.
If the early months of the pandemic revealed the absolute necessity of upskilling, then the reduced growth prospects for companies who suffered as a result of poor mastery of tech brought home even harder the fact that nearly every aspect of the running and success of a business now depends on that mastery. Examples abound: not knowing how an application works slows the delivery of projects; malfunctioning communications platforms leave a client with a poor impression; technical mistakes cause a loss of confidence; and employee morale nosedives as a result. Deadlines are missed, clients start to look elsewhere and business is lost.
Long before the pandemic, Spectrum Networks had already developed a reputation as a leading provider of bespoke training to companies who felt they were struggling to keep pace with the transformation. What made it stand out was its emphasis on people as the unit of single-most importance in a business. The range of tools and platforms designed to enhance performance would only ever be effective if the people using them understood their power. People came first, Spectrum Networks always argued, and it was investment in people’s skills and abilities, more than technology, that would change the fortunes of a company.
Its vision has played a major role in its growing popularity among businesses, so much so that it was a finalist in this year’s Business Excellence (Learning) 2021 Microsoft Partner of the Year Award. With the means to track the progress of employees undergoing its skilling programmes, determine in fine-grained detail where they are struggling and design programmes around their unique needs, it has been able to give employees a level of attention that has been lost amid the chaos of the pandemic. With Spectrum Network’s help, employees have felt as if they are moving forward – and the business can start to move forward too.
Talk to us regarding your digital transformation skilling requirements: dt@specnt.com
INDUSTRY VIEW FROM SPECTRUM NETWORKS
AI shop assistants: get ready for a world where you can’t tell humans and chatbots apart
I regularly fly with KLM from Minneapolis to New Delhi, and always stop over in Amsterdam. I am frequently in Minneapolis for research and this is my route to go home to take a break from work. I have done the journey so many times that I know almost all the shops at Schiphol inside out. However, one time in summer 2019, the predictability was broken when I missed my connecting flight to New Delhi.
I was tired, hungry, sleepy, and the customer-service counter was closed. I had the choice to make the long walk to customer services at the next gate or use my iPhone, so I tried my phone.
I texted the KLM WhatsApp number and went back and forth with an assistant on my choices. Within minutes I was on the next flight, with the boarding pass on my phone. It was only later that I discovered that I had been dealing with next-generation artificial intelligence – in an example of the new field of conversational commerce.
If you haven’t encountered it yet, you will soon. Certain supermarkets are providing voice-enabled shopping services to customers, for example. In the US, Walmart shoppers can ask Google Assistant to add certain things to their virtual shopping trolleys and to learn from their shopping habits.
Google has similar deals with two other supermarket giants – Target in the US and Carrefour in France – while Amazon provides voice-enabled shopping in the UK to online customers of Ocado. Not to be outdone, Walmart recently bought conversation-commerce specialist Botmock to expand its services in this area.
There are already more than a billion people interacting with businesses via either text or voice-based conversational tools. In 2021, conversational commerce is expected to account for total sales of US$41 billion (£30 billion) worldwide, and is forecast to grow five-fold to nearly US$300 billion by 2025 – half of it from chatbots. So how is this market developing, and what does it mean for our shopping habits?
Coffee diehards and hyper-personal shopping
If conversational commerce still feels under the radar, one reason is that most growth has been in China, Japan and South Korea. All the same, it is cropping up everywhere. If you are talking to your girlfriend or boyfriend on Facebook and suddenly want to send them flowers, you don’t even have to break the conversation. You click on 1-800-Flowers.com, a conversational AI tool integrated with Messenger, and explain what you want. You don’t even need to enter card details if you use Apple, Samsung or Google Pay.
Or maybe like me you are a die-hard coffee lover. I used to stand in a queue to get my morning latte, but not now. I just order from my couch from the chatbot on the My Starbucks Barista app, and my coffee is waiting when I reach my local store.
The AI underpinning these advances encompass are deep learning, sophisticated natural language-processing, voice recognition, and cognitive computing – which is a system for machine-thinking that emulates human thought. But the big selling point – besides ease, comfort and shopping anywhere at any time – is probably the potential to make a customer’s retail experience much more personal.
If it lives up to expectations, customers might soon be able to interact with an AI who understands what they want in specific detail. We already see big retailers offering personalised products to attract customers – for example Nike and Adidas allowing people to design their own trainers.
But by using sophisticated AI, personalisation can move to a whole new level. Customers will receive personalised recommendations in their own language, easing the burden of choice and making the experience as enjoyable as possible. They might spend more money as a result – not because they are being manipulated, but because they almost feel like they are buying from a friend.
Meanwhile, businesses will gain new insights into people’s shopping behaviour. Yes this raises privacy questions, but it will also help businesses to refine their offering. This should reduce returns and increase sales.
Where it’s heading
Conversational commerce reminds me of the 2013 movie Her, set in a near future where Theodore (Joaquin Phoenix) falls in love with Samantha (Scarlet Johannson), an AI-based virtual assistant. The relationship eventually becomes unworkable when it emerges that Samantha is simultaneously having intimate friendships with thousands of men. She then combines with other AIs to perform an upgrade that leads to them withdrawing from human interaction.
We may be some way from falling in love with chatbots, but clearly there are questions about ethics here. The technology must not harm humans or pose any threat to their dignity. For instance, Microsoft recently restricted its voice mimicry technology because it makes it easier to create deep-fake videos.
Another issue is jobs. Automation is clearly a threat to the workforce, and conversational commerce could well be part of that. But unfortunately, businesses will not pay for so many support staff if AI can do the job at least as well. One consolation is that AI in its entirety might create more jobs than it destroys. For instance, the World Economic Forum predicted in 2018 that the net new jobs created by AI would be 58 million by 2022.
Looking further ahead, conversational commerce could become all the more prevalent in the metaverse, the virtual reality representation of the internet, with voice-enabled shopping potentially accounting for 30 per cent of all ecommerce revenues by 2030. It seems foreseeable that we will be interacting with AI avatars in virtual reality stores, or talking to bots in real-life supermarket aisles via augmented reality glasses.
What may seem alien to our generation is likely to be second nature to the shoppers of tomorrow. There are pros and cons to this technology, but I suspect my little chat with the KLM chatbot at Schipol airport will soon seem quaint compared to what comes next.
Shweta Singh, Assistant Professor, Information Systems and Management, Warwick Business School, University of Warwick
This article is republished from The Conversation under a Creative Commons license. Read the original article.
Blueprint for an uncertain world
For most observers, the current environment might not seem the ideal time to be executing deals and building investment portfolios. But Guus Franke, founder of Axiom Partners, is feeling ebullient about prospects for transactions in the months ahead.
Franke should have plenty of reason to be cheerful. His firm combines a thriving M&A advisory boutique with a private equity business that has rapidly grown in the last three years to reach a Euro 1 billion turnover across its portfolio companies.
But the Dutchman’s positive mindset is mainly driven by confidence in Axiom’s flexible investment style. It’s an approach he believes is well placed to address the complex nature of the Covid tail that still threatens to undermine investor appetite.
“In a five-year cycle you flip a coin and hope for the best”, says Franke. “But we’re thinking anti-cycle. We don’t believe in five-year investment periods. We want to be free, so we have no set ending for investments. We don’t know when we will exit, or even if at all.”
So far, investors comprising asset managers, banks and family offices have been rewarded for their backing of the firm. EBITDA for the last year at Dutch recruiter De staffing Groep (DSG), Axiom’s largest investment in 2021, was up 25 per cent year on year.
The acquisition of the Euro 400m turnover group is planned to be the first step in a buy and build strategy in the recruitment industry. Another recent purchase was credit management firm Cannock Chase EDR, which is intended to kickstart a series of bolt-ons across the financial sector.
What sets Axiom’s strategy apart from peers is a keenness to acquire businesses that are complimentary, rather than occupying the same ground, unlike the financial engineering model many PE houses are driven by.
This way, Franke is seeking value creation through expansion, rather than cutting out vast amounts of duplication. Although he accepts with any transaction there will inevitably be a degree of overlap and therefore some rationalisation, he insists the approach is very much focused on top line growth.
“We’ve explained to our companies that we are going to grow and with the team of specialists we have on board we’re going to help you grow,” he says.
Underpinning the strategy for delivering successful transactions and building long term value across the portfolio is a sharp focus on people in organisations.
Franke says this ethos begins with understanding the emotional instincts of employees of investee companies, who may have concerns about their future, especially if their company is the subject of a merger.
Franke says this thinking offers a divergence from a lot of mainstream corporate culture where “the same DNA exists across asset managers, VC firms or the big consultancies.”
“If you have the same DNA you think along the same lines, for example thinking in the same way about risk mitigation”.
Franke believes alternative thinking may be key to achieving fast and effective decision-making as investors and corporates scramble for solutions in response to the Covid environment. “A mingling of different DNAs can make us far more effective,” he says.
“We are still focused on risk mitigation, but the breadth of people we have brought into the firm means there is plenty scope for developing human capital and for entrepreneurial thinking,” says Franke.
He believes the firm’s focus on both financial and non-financial information can deliver powerful insights, not just for executing transactions, but also for building strong corporate cultures for the future.
“If the people in the businesses are not committed in the long term, how will those companies thrive? “We take a deep dive into the human aspects of a business. We ask: What do people want? Can we change as a business or are we not able to?” says Franke.
Paying attention to the people aspects of businesses can reap significant returns for a firm like Axion which employs 4,000 staff across its portfolio companies, says Franke. At DSG a people-centric approach to addressing the Covid challenge included improvements to home working environments and laying on a huge car-based party for staff and families.
“The focus on people is one of the value drivers of the firm, alongside building brands and reputation” says Franke, who is actively seeking to acquire more large companies while encouraging another cohort of investors to back his model.
INDUSTRY VIEW BY AXIOM PARTNERS
Why the future of art investment could be digital
The art market has long been a thing of intrigue. Blind auctions, paintings going for tens of millions of pounds, theft and forgery, maverick trading – it is the stuff of Hollywood thrillers. It is also often dismissed as elitist, and inaccessible to those of modest means – a plaything of the very wealthy who can spend vast amounts of money on artworks they seldom put on display in their own homes.
But like all markets it is forever evolving. In terms of impact and scale of transformation, the latest phase might well be the most profound since the rise of auction houses in the 18th century: the growth of digital art and the technology for buying and selling that supports it.
Digital art as a concept is fairly simple: it is art made using digital tools that exists, for the most part, on a digital platform. The technology supporting the digital art market is slightly more complicated. Central to it are NFTs, or non-fungible tokens. Digital artworks are printed onto blockchain technology in the form of NFTs, a process known as “minting”. In turn, these NFTs provide indelible proof of ownership. NFTs can’t be stolen, forged or tampered with, and they mean that the digital artwork can be traded in a cryptographically secure manner. In other words, unlike a Rembrandt hanging on the wall of a gallery or stately home, these works simply cannot be snatched and funneled through the black market.
The rise of digital art and NFTs has already brought fame to, and made millionaires of, artists who until recently had only online fanbases. In March this year, an NFT artwork by the artist Beeple – real name Mike Winkelmann – sold at Christie's, for long the trading ground of canvases from the likes of Matisse and Van Gogh, for $69 million. It made him the third most expensive living artist at auction, behind David Hockney and Jeff Koons.
But the work, Everydays – The First 5000 Days – a composite of 5,000 digital images Beeple had made since 2007 – had a unique story. It was the first digital artwork to be sold at a traditional auction house. The sum didn’t merely reflect a new artist finding his stride; it was the moment a wholly new medium of art went under the hammer.
Check the small print below the Christie's listing, and you’ll see details about the “wallet address” and the “non-fungible token”. No piece of art sold at Christie's had carried these details before, and it has led many to ask if digital art, and the crypto-technology that supports it, will one day displace the physical canvas at the centre of the art market.
Digital futures
Works such as the Beeple one aren’t the only style to have gained hefty prices. Memes have also been minted and sold for tens of thousands. The CryptoPunks, a collection of 10,000 digital cartoon-like characters stored on the Ethereum blockchain, all of which are unique, started out in 2017 at between $1 and $34 a piece. One of them sold in July for $7.5 million; last year, the average price stood at $207,211.
Digital art functions much like physical art in that public perception is a key driving force behind the monetary value of a work. But when it comes to a piece that is part of a collection, such as CryptoPunks, the value is also influenced by how many people are buying and selling.
One thing that has speculators looking closer at the digital art world is the fact that the price appreciation of some of the best-known digital artworks is likely to have been faster than any other piece of art in recorded history. With the explosion in recent years of virtual wealth – thanks to the popularity of bitcoin, Ethereum and others, which have limited use outside of digital trading – it is now a buyer’s market.
Central to the whole process for the artists themselves is the ability to mint their work – to turn it into an NFT. Since starting out a decade ago, Paiblock, based in Denmark, has provided among the most affordable minting services in the industry. Using Paiblock’s own blockchain platform, an artist can mint 900 works for just $1. Moreover, the company takes commission only if the work ends up selling. If they don’t sell then, save for the low cost of minting, the artist doesn’t lose anything.
Democratising the art market
Part of the appeal of digital art, especially among younger generations, is the ease of accessibility. Prospective buyers don’t have to enter galleries or auction houses. And while they may not have the original artwork to hang on their walls, the extent of online engagement among Gen X, Y and Z-ers means that this appears not to be a deterrent. Paiblock hosts two sets of collectibles itself: CryptoPops and CryptoPandas. Like CryptoPunks, which many consider to have launched the cryptoart movement, these are uniquely generated characters that can be owned by an individual or company – and like any art, they function as either a collector’s item or a commodity for trade.
Younger generations understand better than many that online assets, for all their virtues, aren’t always dependable targets for investment. If properly minted, however, NFTs are highly secure, and Paiblock operates one of the most robust and easy-to-use digital environments that exists for minting.
It is platforms such as Paiblock that are helping to democratise the art space – to make artwork accessible to all, and, potentially, available to all.
For more information visit www.paiblock.app
INDUSTRY VIEW BY PAIBLOCK
Solving today’s biggest enterprise cloud challenges
Greg Stam, Managing Director, AHEAD
Close to 75 per cent of US companies now rely on public cloud platforms, and according to AHEAD’s research, nearly a quarter (21 per cent) plan to move all infrastructure and apps to the cloud.
Achieving peak cloud success means planning for inevitable challenges. These are the toughest hurdles enterprises encounter in their cloud journeys – along with the keys to overcoming them.
Effectively secure the public cloud
Most information security teams struggle to keep up with security events from on-premises environments and have now been thrust into the realm of the public cloud. This presents a threat like never before, fuelled by the adoption of new enterprise platforms at a breakneck pace.
But security doesn’t have to hold back cloud success. Adopt industry standards, take advantage of native cloud services that enhance your security stacks, and automate security with cloud-delivered APIs. With these tactics, security can be a selling point and not a detractor to continued cloud adoption.
Manage costs efficiently
The cloud supports increasingly numerous business capabilities. But too often, cloud and IT as a whole can be seen as a cost-centre, not a business-aligned value centre.
Running IT with a business strategy lens requires CIOs to prove the value of services, account for costs, and drive efficiency. Approaches that include cost optimisation, chargebacks, and cloud spend commitments can transform cloud services into value-driving solutions integral to the organisation’s success.
Get modern applications right with a framework foundation
The demand for effective applications is on the rise. End-users want digital engagement opportunities and organisations want efficiency and performance. But, when it comes to application software, enterprises have a speed problem. Businesses expect no app downtime and no outages, along with frequent delivery of new features. To meet this challenge, enterprises need a framework for tackling greenfield cloud-native app development, legacy app modernisation for cloud, and cloud management.
Establishing a strategic modern applications framework helps organisations build a foundation that guides their journey to modern applications success. And a strategic plan for dealing with these and other challenges puts your organization on the path to cloud success.
Learn more about how AHEAD approaches digital transformation at ahead.com.
INDUSTRY VIEW FROM AHEAD
The cloud gambit: what chess can teach you about a winning hybrid cloud strategy
Greg Lotko, SVP and General Manager, Broadcom Software
Business success in today’s competitive landscape depends upon the strength, effectiveness and agility of your IT. Too many business leaders become convinced that moving to the cloud is the ballgame – migrate your applications to a cloud environment and you’ve won.
Don’t get me wrong. Cloud is a powerful tool and a fantastic platform for a variety of purposes and workloads. That’s why its adoption is so widespread. And it’s only continuing to grow. But it’s not the ballgame. In fact, it’s a lot more like chess than any sport you play with a ball.
The reality of cloud today as well as its foreseeable future is hybrid. Hybrid cloud delivers the agility, flexibility and cost savings of public cloud together with the strength and capabilities of private cloud and traditional, on-prem IT.
Organisations need to be agile and responsive. They have to deliver value quickly and consistently to keep their customers happy. Fall behind in the race for innovative applications, serve up inaccurate data, or leave people staring passively at a screen too long without an answer, and you’ll be losing a growing number of customers. Hybrid cloud solves this problem by extending the reach of business IT closer to the data and reducing latency, while simultaneously preserving the ability to scale securely, maintain compliance and safeguard control over sensitive data. In short, it’s the best of all worlds.
The question I see many enterprises wrestling with is how best to build and manage their hybrid cloud to maximise success… which brings us back to the game of chess.
With chess, as in business, to be successful you need a strategy. Play the game without one and you’ll be treated to a quick exit. And, just as each chess piece has a specific strength and use, so too does each technology or platform in your enterprise’s IT environment. The key to “winning” in both contexts is to get all your pieces working together in a strategic and integrated manner across the full breadth of your landscape. To do that you must understand and leverage the unique capabilities each piece offers so they can work in concert with one another. The challenge is to run applications on the technologies that are best suited to handle those workloads.
So, how do you make that determination? Focus on business value first. What outcome are you trying to drive? What capabilities are you aiming to deliver? Those considerations point the way. Technology decisions should come after that, and should be based on selecting platforms that will give you the most impact with the greatest efficiency.
Now, technically, a cloud architecture is “hybrid” if it combines both public and private cloud elements. Practically, however, enterprises can select technologies to include based on either their private cloud pedigree, or simply their cloud-like capabilities. As long as a technology can be integrated and share data easily with the cloud, it can be part of a hybrid cloud architecture. This allows enterprises to keep “in play” those on-prem technologies that consistently deliver value, especially those with unique strengths, such as your existing datacentre, storage or mainframe, and blend them with newer technology investments to achieve the greatest results.
Take the mainframe for example. For certain workloads – those that are chatty and do a lot of I/O, or require high throughput – or if you need business-critical level of security, the mainframe is hands down the right choice. Today, with an open-first approach, one that fully leverages open APIs, command line interfaces, and other modern open-source technologies, it’s easier than ever to integrate across technologies with mainframe without the need for rewriting or duplicating code. This spares businesses the trouble of moving to a different platform, which could otherwise introduce unnecessary risks.
Ideally, cloud technology should co-exist and align with other successful business and IT strategies, not replace them. After all, enterprise applications are typically multi-platform with mobile, web and cloud front-ends connecting to backend mainframe systems where the heavy lifting takes place. Think of it this way… your cloud for your customers is really every part of your IT that delivers service to them.
How you build your hybrid cloud ultimately comes down to a strategic calculation of which technologies are going to help you drive value to the customer and improve their interaction with you. The elegance of the interface. The speed of the transaction. The ability to tie information together for actionable insights that yield more tailored results. Integrate and co-ordinate those technologies and you’ll be well positioned to beat the competition. Check, and mate!
Broadcom has helped many leading enterprises plan, build and manage successful hybrid clouds. Connect with a Broadcom expert to discuss strategies and technologies for your enterprise today.
INDUSTRY VIEW FROM BROADCOM SOFTWARE
Four steps to ready your business for the future of work
For employees around the world, the gradual return to work is far from back to business as usual. Forrester predicts that 70 per cent of companies will pivot to an ‘office plus anywhere’ work hybrid model in which at least some employees can work anywhere they want for part of the week while spending the remaining days in an office.
Just as the workplace itself is changing shape, so too is the working style, technology and management demands of the people within them. Lower talent attrition and better recruitment successes will be driven by the improved employee experience of hybrid work. For employees, offers of increased flexibility and autonomy and lessened commutes will prove an attractive draw. As a result, while the benefits of anywhere-work may appear small at first, the compound effect will accrue over time.
This is a model that even the most reluctant leaders need to embrace to capture an array of business benefits. And yet, jumping quicker than your company is ready for can be just as damaging as not adjusting at all.
Not all companies are ready to seize all the benefits of hybrid work immediately, but there are four steps that leaders can take to determine both how ready they are and what areas require investment to fully support hybrid work.
Ask the right questions – then ask them again
Which roles or functions are suited to anywhere-work? What percentage of employees worked flexibly or remotely pre-pandemic? What percentage of employees could potentially work remotely long term? What’s the relationship between knowledge and frontline workers? How will customers be impacted?
These questions will help to assess your potential readiness. Be aware that the answers might change over time or be impacted by environmental influences, so they need to be regularly revisited.
Reinforce key values at all times
To drive a culture that supports hybrid work, you must reinforce key values. Employees must be able to adapt easily, enabling them to adopt new tools, processes and values at work. They must feel happy and proud to work for your company.
Burnout is common among remote workers, so companies need to be alert to the signs and focus on programmes that encourage balance, as well as investing in engagement and motivation initiatives to keep teams connected and charged.
Stay true to your business goals
To gain maximum benefit from anywhere-work, your business needs to align with the goals that will drive value in the first place. In the context of your business, how important are goals relating to employee performance and retention, customer experience, recruiting the best talent, cutting office rental costs and securing business continuity? Then ensure you have metrics in place to measure, track and understand them over time.
Equip your business for anywhere-work
For hybrid work, it’s critical to reach a level of technological maturity around key tools, keeping employee experience front and centre. Leaders should focus on collaboration tools, conference room technologies, cloud and software-as-a-service and security technologies to underpin successful distributed work. Furthermore, employees must have access to personal technologies such as laptops, webcams and 4G/5G to equip them for success.
Ultimately, assessing your readiness will be the start of a conversation among leaders and employees that defines the best path forward for returning to the workplace. But don’t think of it as a one-time event – this is going to be an ongoing work in progress.
Forrester’s Anywhere-Work Calculator is a tool to help to assess factors such as the percentage of employees who can potentially work remotely and how technologies stack up in terms of collaboration and security. Ultimately, organisations that do this right will be the most productive and empathetic, creating a workplace that drives deep employee engagement and delivers on business goals.
by JP Gownder, Vice President and Principal Analyst, Forrester
Fast tracking the route to strategy: how the role of the CFO is evolving
Accounting has historically been seen as a cost centre and a reporting function to meet the demands of regulatory reporting, rather than a function focused on adding strategic value to the business. The finance function helped with monetary resource and reporting, but it rarely had a strategic role to play.
Over the past year and a half, there has been a greater responsibility placed on the CFO to add value to the organisation with rapid, accurate data and to support the commercial operations with greater insight. However, the tyranny of tedious work combined with manual processes continues to be a challenge for many finance and accounting teams. While there is a demand for data to be produced quickly, even in real-time, it is locked in silos. Ineffective tools such as spreadsheets limit the CFO’s view to a snapshot of the current financial situation. Currently, finance professionals spend 80 per cent of their time producing the data and only 20 per cent of their time analysing it.
New processes are needed to meet this demand. Sadly, accounting and finance professionals are rarely empowered with the right technology to provide the timely and relevant insights that are essential for business stakeholders to guide critical business decisions. Strong change management across the finance office as well as the organisation as a whole will be needed as the role of the CFO continues to evolve and a digital transformation strategy is embraced.
Business is an ever-more challenging environment. Global competition increases as many processes move online, while technology lowers barriers to entry in many industries and facilitates a wave of new start-ups. In addition, the labour shortage across much of the globe is causing concerns and impacting the ability to get the work done that is needed to ensure growth. Four strategic problems are adding to the challenging times.
There is a need for a new vision for the future of the finance function. Digital transformation and process automation are raising many questions in this area. For example, can software replace accountants? This was a big concern when robotic process automation and bots were first discussed years ago. The answer is clearly no. Instead, software can be used to automate many of the routine and tedious tasks that many finance professionals must currently work through, freeing them up for a more creative and strategic role such as managing exceptions, providing insights and developing alternative scenarios. In addition, with the tight jobs market and the realisation that there is not an ever-increasing labour pool, businesses must start to leverage technology and automation to help fill the gap of increased work and empower finance and accounting teams to provide the higher-value services businesses need to survive and thrive today.
There is a caveat, though. Finance professionals who are freed to focus on higher-value areas may not have the skills or mindset to do this. Alongside automation, there is a need to upskill the current talent pool so they can take full advantage of the opportunities available in the evolving roles.
The costs of manual processing
Financial processes can be transformed by leveraging technology solutions that enable automation today because there are many costs to delaying this change. Perhaps the most obvious is the risk of inaccuracy. Manual data transcription has an average error rate of around 1 per cent. Even if your organisation only performs 1,000 transactions a year, those errors could be very costly, and at the very least time-consuming.
In addition, there is the cost to your employer reputation. Businesses that force their financial professionals to work long hours on tedious tasks that are governed by tight deadlines will quickly lose talent, and replacements will be hard to find. This is compounded by the current talent shortage that is already making it harder to find people needed to grow the business.
“The benefits and ROI of financial automation are immediate and evergreen,” comments Omar Choucair, CFO of Trintech, the leading global provider of integrated Record to Report software solutions for the Office of Finance. “Whether you have 500 or 500,000 transactions per day, if automation can match 95 per cent without human intervention, that can free-up our talent for more strategic initiatives, eliminate errors, and remove the “drudgery” aspect of accounting for improved job satisfaction and career growth.”
Most importantly though, a failure to automate means that finance teams will constantly be focused on routine tasks. They will be putting out fires in the organisation rather than preventing fires before they happen. Constantly being in a reactive state leaves them no time to support the business through strategy development and revenue optimisation.
These cost benefits can be quantified. For example, LKQ Corporation’s financial transformation process reduced the close time from 9 to 7 business days, and resulted in a reduction of almost 50 per cent in cash specialist headcount together with a growth in revenues of 3,711 per cent. At the same time Financial Shared Services Center headcount was kept flat.
The pandemic has accelerated the path to process automation. Due to remote working, it was harder for finance teams to question things in spreadsheets on a face-to-face basis and collaborate effectively on projects. However, as we come out of the pandemic, there is wide acceptance of the benefit of automation as a way of improving accuracy, highlighting exceptions and enabling collaboration.
Companies that don’t expand their linear thinking and try to go back to the way things were pre-pandemic are setting themselves up for failure. Today’s companies will not survive unless they make bold changes and digitally transform themselves.
Changing regulations
Driven by increased concerns around cyber security, privacy and artificial intelligence, regulations are changing and the work associated with them is increasing. MiFID II, GDPR, Dodd-Frank and many more are adding to workloads not least because of the requirement to understand them. Automation can make the chore of dealing with frequently changing regulation a lot easier.
In addition, finance regulators are making increased demands such as ESEF, ESG reporting and the pending proposals for a UK version of the Sarbanes-Oxley Act (UK SOX). These all create additional demands on the finance teams of global organisations.
Evolving the finance function to a more strategic role will never be simple. Most businesses cannot expect to have the necessary resources of knowledge and skills within their existing finance teams. They may not even be aware of the various technology solutions available to make their work more efficient and effective.
For this reason, working with a trusted partner makes sense: specialists can advise on the best ways to transform finance processes, with a number of benefits:
With the assistance of an appropriate technology partner, businesses will be well equipped for a successful financial transformation process, enabling them to thrive in an increasingly complex business environment.
How does your use of financial close automation compare to your peers? Download Trintech’s Global Financial Close Benchmark Report to learn how your company can benefit from tailored automated financial close solutions that fit the way you do business.
INDUSTRY VIEW FROM TRINITECH
Using SaaS metrics to drive growth in software businesses
Driven by the rapid expansion in cloud computing, software as a Service (SaaS) products such as Office 365, Slack and Salesforce have seen rapid growth. But sustaining this progress will present a challenge if software companies fail to develop a deep understanding of the key metrics needed to maintain this momentum.
For SaaS organisations, finance departments are strategic assets. Their responsibilities include managing the complexities of recurring subscriptions and billing cycles – the very lifeblood of a business.
While consumer services such as Spotify, Netflix and Amazon Prime are generally fairly simple – one product, one price, one year – business to business (B2B) software tends to be much more complex.
Subscriptions must be kept up-to-date, with the right terms, price changes, upsells, indexes and legal entities. SaaS enterprises also need to create and maintain a single source of truth about transactions and revenue, thus enabling a 100 per cent accurate CMRR forecast.
Subscription management software may need to integrate with other systems such as finance or CRM. For some businesses, there may be international requirements with different VAT or sales tax rates. And B2B sales are often varied, with specially negotiated agreements and added value included. More fundamentally, businesses are constantly changing. They need to be agile and flex with circumstances. The services they provide must flex with them.
Subscription management for SaaS supports efficiency not only because it reduces the risk of human error but also because it provides the ability to track key SaaS metrics, automate invoices and communicate with new and existing customers. However, without subscription management, solution growth is at risk of being very rigid and unable to cope with changing business requirements.
“Subscription management and data insights can help us to better understand how our customers use our products and where there may be gaps in services we haven’t yet thought of,” says Niclas Lilja, founder of Younium, a leading European provider of B2B subscription management solutions. Younium’s subscription management system manages the full life cycle of B2B customer subscriptions and integrates all the processes from sales to finance, removing errors, making changes to subscriptions and controlling invoicing.
Younium supports B2B subscription software providers that need a more flexible solution. “Many B2B salespeople negotiate wildly and freely,” says Lilja. “There is a need for a system that can cope with this: a system that isn’t limited to a single price for a single offer.”
SaaS providers can also benefit in other ways, with control of their advanced subscription services. Younium’s experience across many different types of software businesses means that it can offer extensive best practice advice where finance departments can analyse and report KPIs without risk of errors. This also includes getting the basics right: remembering to invoice repeat subscriptions and chase late payments or changing pricing when initial special terms have expired.
Younium also provides systems that support sales, with real-time information about the value and profitability of individual clients and ways of streamlining the quote-to-order process. This helps its clients to improve the B2B customer experience, enabling them to move from billing based on complex spreadsheets to online systems where self-service renewals can be provided.
Linked to this is support for financial operations. Billing, collection and data management can be automated, saving software houses time and costs and supporting business decision-making. Automating billing based on usage can be enabled so that subscription invoices can be sent out on time – a powerful way of protecting cash flow. Auditing and reporting can be simplified, too.
Advanced subscription support can even increase the valuation of a business because a transparent billing system makes future subscription revenues visible. Surfacing these recurrent revenues is essential, especially for externally funded companies. Younium enables subscription businesses to describe their future revenue streams more fully and credibly, with monthly repeating revenues (MRR), retention rates, customer acquisition costs and lifetime value.
In the past, most major subscription management services have originated in the US, where there is a large and relatively homogenous single market. Europe is made up of several small markets, and subscription services need to be flexible to cope with the variety. With its European heritage, Younium is well placed to manage the complexity of B2B services in multi-faceted international markets.
It’s clear that this highly flexible subscription management solution will empower SaaS companies to understand and act on their essential metrics. It is this innovation that is driving the reinvention of the software subscription industry.
To find out more about a subscription management solution to support B2B SaaS enterprise, visit younium.com
INDUSTRY VIEW FROM YOUNIUM
The big challenges for supply chains in 2022
In the run-up to Christmas, there was considerable anxiety about shortages of festive food and gifts. Trade friction was already at the core of the Brexit debate, and supply chain issues have been made much worse by the Covid-19 pandemic.
For example, a computer chip shortage had a knock-on effect across many industries. Concerns have also been raised about everything from lithium supply for electric vehicle batteries to restaurant food supplies to even coffee shortages.
Never has the issue of supply chain management been so prominent. The question now is what challenges supply chains face in the year ahead. So what can we expect?
Complex, fragmented, under pressure
Products reach consumers through a chain of companies involved, which typically includes manufacturers, logistics firms – who provide storage, distribution and transport – and retailers. Not surprisingly, the whole system is highly complex.
There’s a whole philosophy of contemporary supply chain management (SCM) concerned with making supply chains much more integrated than they used to be. Done well, it can significantly improve the overall performance of companies, as well as benefiting the economy and society. Yet this long-term effort to make the whole system more efficient has been set back by a whole host of challenges in global supply chains.
Three big issues became particularly apparent in 2021. First, and probably the most obvious to many of us, was the unprecedented pressures on global supply chains created by the Covid pandemic and the subsequent series of lockdowns and restrictions which varied in their timing and severity from country to country.
This has resulted in significant geographical shifts in supply and demand, which in turn has created problems for finely tuned global supply chains. Trends that were apparent pre-pandemic, such as increases in online shopping and driver and other skill shortages, are now causing real problems.
Second, the economic and business environment became more challenging. For example, in the UK and the rest of Europe, supply chain pressures were caused by Brexit as a result of increases in red tape and cross-border checks. More widely, firms continue to grapple with a range of international business challenges ranging from fluctuating exchange rates to the building of global management teams.
This all matters because business has become increasingly international – often global – in recent years. This is thanks to the reduction of traditional barriers to the cross-border movement of products, services, capital, people and information. The impact of this change on logistics and SCM is the subject of my book Global Logistics: New Directions in Supply Chain Management.
Third, the environmental impact of logistics and supply chain activities is beginning to be more widely understood. If countries around the world are to meet their emissions targets and commitments, it is key that they develop more sustainable supply chain practices. Glasgow’s COP26 in November had a strong focus on transport including freight and logistics. Business as usual is simply no longer an option if a sustainable future is to be achieved.
But uncertainty is a characteristic of the international business landscape in which supply chains operate. As a result, major companies have become strongly focused on supply chain risk management. This means identifying where risks of any kind exist in the network, assessing the potential impact of these risks, and putting mitigation strategies into place. A range of formal methodologies and tools have been developed to support this process.
The big question is how all this complexity can be handled, particularly in terms of design, planning and execution. These challenges are new in many respects, so past experience cannot be relied upon to generate solutions.
An unpredicatable world
So what kinds of things are going to affect global supply chains in 2022? As The Economist neatly put it recently, “the era of predictable unpredictability is not going away”.
The arrival of omicron has provided a timely reminder of the unpredictability of the pandemic. The emergence of new variants during 2022 could accentuate some of the current pressures. In this context, China’s continuing zero-Covid strategy with its tight border restrictions could create problems.
Despite some easing in recent months, international shipping costs are likely to remain high in 2022. Closer to home, the arrival of the full post-Brexit customs checks introduced on January 1 has introduced further friction and added costs, with many firms reporting a worrying lack of preparedness.
Above all, freight transportation and supply chain processes will continue to change during 2022 as more environmentally sustainable practices are adopted. These practices affect everything from transport vehicles, such as switching to electric delivery vans, through to changes in the wider supply chain, such as relocating distribution centres to minimise distances travelled.
Industry and academia are collaborating to develop innovative and sustainable practices, as can be seen in the work of the Centre for Sustainable Road Freight, for example. The year ahead will be key in the adoption of these practices, each of which requires change in the operational practices of firms. Such change will inevitably create short-term challenges as the new practices become embedded.
Business has to be resilient and capable of adapting to major disruptions so that it can develop long-term strategies and solutions to these complex challenges. In the meantime, shoppers are likely to see higher prices, with companies passing on increased shipping and other logistics costs to customers. We may continue to notice things missing from our supermarket shelves – new year product shortages are already being reported in some countries. So as consumers, we are going to have to keep being a bit more resilient ourselves.
Edward Sweeney, Professor of Logistics and Supply Chain Management, Heriot-Watt University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
Visibility and control: the key to success for any digital transformation initiative
How an enterprise architect can help you align strategy, IT and your business
As a business decision-maker, you know that it’s critical that your digital change initiative significantly shifts the dial in your organisation. At the same time, you’re facing two key challenges: deciding how to drive this shift, and doing it with minimal risk and maximum return. Your credibility relies on your ability to plan and execute your approach.
Driving this digital change encompasses your entire organisation. From people, processes and technology to behaviours, culture and your fundamental customer interactions, all aspects must be taken into account, and aligned and executed with precision. Without this, you won’t meet your ambitions. Process will change, technology will be introduced, but the dial stays where it is.
To drive this change, you need a team. A team that encompasses many change experts: analysts who understand your market and services; change managers who can persuade and shift the business operation; and designers who determine your new processes and underlying technical infrastructure.
This team will provide you with the knowledge and ability to plan and execute your vision. However, you’re still missing one key ingredient, one that brings these disparate change experts together: your enterprise architecture team. It’s this team that provides the glue, keeping things aligned so that all of these changes result in significantly shifting the dial. This team plays the role of devil’s advocate and keeps your direction and execution in alignment.
What is enterprise architecture?
Simply put, “enterprise architecture” is an alignment of what the business wants to do now and in the future, and how this is enabled by technology.
Most successful enterprise architecture teams take care of specific aspects, some being more business-focused and others more oriented towards technology. Together, they span the entire enterprise. In general, most teams take care of the development of four “architectures”: business, technology, applications, and data.
The most pertinent of these architectures for an organisation’s decision-makers is business architecture. In simple terms, this architecture describes how your organisation generates revenue by providing insight into its value streams. It takes the business strategy and maps it against processes. This architecture also identifies opportunities for innovation and deals with governance and standards.
Why do you need to partner with an enterprise architect?
Enterprise architects use a modern tool, such as BiZZdesign HoriZZon, to design and model the different architectures. Architects typically create something called a capability map that aligns IT to the business strategy. A capability map aims to support business executives’ strategic discussions and decisions. With such a map, you’ll be able to analyse your organisation by looking at it holistically, from a business perspective.
A capability map is drawn up in clear language, without technological jargon, so that non-IT stakeholders can understand it easily. A well-understood capability map quickly becomes the backdrop for many different discussions. For example, the capability map can add value to your decision-making by showing the following:
Make digital transformation concrete
Digital transformation often makes organisations more complex and intertwined. As clichéd as it may sound, you need to have the technological upper hand in order to gain a competitive edge. Armed with enterprise architecture tools such as BiZZdesign HoriZZon, architects can help you make data-influenced decisions and execute your organisation’s transformation initiatives with confidence.
Those transformation change initiatives shouldn’t be a disruption. Success shouldn’t be by chance. It should be by design.
Learn how to execute digital transformation change initiatives with confidence. Download our whitepaper: From Strategy to Execution with Capability-Based Planning.
Discover how BiZZdesign can help you dramatically increase the success rate of your digital transformation, strategic investment allocation and risk-management initiatives.
INDUSTRY VIEW BY BIZZDESIGN
Modernising management: how digital strategy improves transparency and efficiency
The digital age is transforming the way leaders manage their businesses and serve their clients. Companies at the head of the curve will reap the rewards, while the rest will be left behind
According to Forbes Magazine, 87 per cent of business leaders think digital will disrupt their industry, but only 44 per cent feel they’re prepared for the impending transition.
That’s good news for innovative leaders, because:
Continue reading to learn how a simple, targeted digital transformation can modernise management practices and boost a company’s bottom line.
Streamline workflows and manage operations with a OneStop Client Interaction Hub
Client-facing apps have been very much integrated into consumers’ day-to-day lives for things such as depositing cheques or booking healthcare appointments, but a OneStop Client Hub goes much further than that.
Picture a financial services company that gives its clients access to their own branded portal where they can call or text advisors (skipping the hold music), initiate trades, schedule meetings, sign legal documents electronically and complete anything else related to their business needs. Additionally, they would experience the added benefit of gaining full insight into the history of interactions. This paves the way for creating a better service experience.
A OneStop Hub is a digital solution that gives clients convenient access to end-to-end business service needs, all from their smartphones, tablets or desktops. It’s perfect for high-touch businesses where personalised relationships are paramount and client accounts need to be managed for quality service delivery.
Unprecedented transparency and efficiency
Digital transformation makes it easier for clients to connect and do business with companies, but that only represents half the equation. A OneStop App is a revolutionary approach to management because, until now, it hasn’t been possible to achieve this level of transparency and efficiency.
A OneStop App consolidates all customer communications in one centralised location. This empowers management to:
Digital gives executives and business owners a level of insight and control over their business that simply isn’t possible with antiquated systems. By consolidating every customer interaction on a OneStop App, businesses can completely transform their processes to reduce costs, retain customers, streamline workflows and dominate their market.
Companies can also tie task lists to any account to:
A OneStop Hub is a simple, straightforward digital transformation solution that offers tremendous return because it improves the client experience, while also enabling companies to streamline their internal processes for more efficient organisational practices.
Digital management & the just-in-time model
Just-in-time delivery is a model commonly used in manufacturing and logistics, but its reach is much broader than that. A retail store, for example, could use historical data surrounding product sales to order just the right amount of a certain item to keep up with consumer demand, without over-ordering items that won’t sell or inventory that will go to waste, such as perishables at a grocery store. This reduces costs and improves the bottom line.
The just-in-time approach is extremely effective in client-centric service industries such as banking, healthcare, real estate and other high-touch sectors. Clients in these industries have inquiries and requests around-the-clock, but it’s usually not economically feasible to staff companies 24/7.
Even during normal business hours, demand for client support fluctuates. Significantly reducing or eliminating hold-times would require over-staffing much of the time. Just-in-time service means answering clients’ questions in a timely fashion, within a timeframe that works for them. Digital technology makes this possible.
Modernise your business today with your own branded OneStop App, powered by Moxtra. Get started today with your secure digital portal.
INDUSTRY VIEW BY MOXTRA
Change is constant – and BMC has helped companies manage it and thrive for more than 40 years
Change is constant. But sometimes, the pace is so fast, or the scale so large, that it is more than a change. It’s a revolution. And an opportunity.
We live in these times.
We have all learned to adjust to uncertainty and change. The pandemic has brought some industries to a standstill while others have flourished, benefiting from necessary changes to operating models, customer preferences and technology shifts that have transformed the nature of work and business.
Companies have had opportunities to leverage technology, harness the power of data and remain adaptable – be it in navigating market turbulence, adjusting to supply chain challenges, or knowing when and how to launch new products and services. A volatile market has brought with it examples of companies that intelligently navigated to success, almost as though they had a crystal ball.
A software technology leader for more than four decades, BMC partners with the world’s leading brands by helping them run their businesses while reinventing them for this new era.
Four-decade track record
BMC traces its roots as a leading innovator to 1980, in the early days of enterprise IT – first as a specialist in management, monitoring and optimisation software for mainframes. Through strategic acquisitions and relentless R&D, we evolved alongside our customers and the industry. From the emergence of networking and distributed systems, through the adoption of cloud and mobile frameworks, to the era of the Autonomous Digital Enterprise, where agility, customer-centricity, and actionable insights reign, we continue to deliver the solutions for success today and into the future.
We count some of the world’s leading innovators as our customers and partners in digital reinvention, including 84 per cent of the Forbes Global 100. Because of this experience and focus on innovation, we’re uniquely situated to help companies adapt their organisations for hybrid work, faster digital commerce and more autonomous services.
So how has this been put into practice? Multinational supermarket chain Carrefour operates thousands of stores, ranging from supermarkets to convenience store-sized Carrefour Express formats. Each country’s consumers have distinct tastes and preferences. Varied store sizes have different restocking and pricing needs. Across its varied geographies, the company relies on Control-M by BMC to orchestrate the business processes for approximately 12,000 stores in 30 countries, ensuring consistent restocking, pricing and discounts.
We’ve helped Carrefour automate its business processes uniformly to ensure that each store can operate with optimal stock and staffing. From batch processing of transactions at the end of the day to near real-time management of inventory, Carrefour is showing how automation everywhere supports its path to becoming an Autonomous Digital Enterprise.
And this experience is just one of many ways BMC is helping customers to digitally transform their business.
Companies continue to invest heavily in automation and digital tools to support new realities: new collaboration software to enhance the productivity of their workforce, chatbots to support the customer journey, and intelligent automation that manages repetitive tasks and workflows.
These tools are particularly useful and impactful when organisations can identify, analyse and apply the enormous amount of data that enterprise systems generate every day. Every employee interaction, each website visit, and every application use generates more data that can be translated into actionable insights. Knowing that global data volume in 2021 is expected to reach 79 zettabytes and that by 2025 it is expected to double, we need to find ways to use all this data to move faster than the competition and find ways to differentiate.
Eye on the future
In 2020 we introduced the Autonomous Digital Enterprise, or ADE – our vision of a future in which companies can identify new opportunities and pivot quickly to capitalise them for tomorrow’s growth amid changing and transformative times. In our view, ADEs will leverage technology to deploy automation everywhere, deliver transcendent customer experiences, rely on adaptive cyber-security, and extend the agile software development principles known as DevOps to other functions of the organisation.
Data is the lifeblood of the ADE. Collected and curated from across the business, it can be analysed and distilled into actionable insights, enabling organisations to adjust quickly and effectively.
But we know that it’s not about how much data you have, it’s how you use it that will deliver immense business value. BMC is not a data analytics company. We are a data operations company. Our specialty is extracting and optimising data from assets across an organisation – whether they come from mainframes, data centres, the cloud, mobile, or emerging edge computing technologies.
An IBM study revealed that 80 per cent of data is dark and unstructured. We’re bringing together data points from enterprise service management with insights from AIOps to automate the provisioning and remediation of services, all to help you deliver the experience your customers expect. We can support DevOps by marrying IT operations data with service management data and applying machine learning algorithms to these datasets for reliability analytics. And we’re doing so much more. Imagine the possibilities when we can bring more data to light…
When digitally transforming your business, it is important to align with organisations that can run and reinvent your business on the ADE journey. Learn more about how you can leverage automation everywhere, drive business outcomes with data, and deliver a transcendent customer experience at BMC.com/ade.
The metaverse: the new digital economy?
The importance of building the metaverse in an open and decentralised manner.
Imagine a virtual world in which you spend most of your working hours. A world in which you go to work, do your shopping, watch movies, play games, learn, travel, date and live out all the shared experiences you would typically have in a physical world. A persistent, immersive, comprehensive space in which everything and everyone is present.
The metaverse, in one form or another, has long been a staple of science fiction. Neal Stephenson’s 1992 novel Snow Crash gets the credit for the name, and its most well-known definition, although related concepts had been around ever since the 80s in a wide variety of media, ranging from novels to videogames. The technology required was too futuristic back then but, with accelerating development in the relevant fields, a path towards the metaverse finally seems to be forming. The choices we make over the next decade may impact the future of society and technology in ways that are at least comparable to the advent of the internet or smartphones.
Metaverse predictions
It is hard to predict, at this point, how we will interface with this world and whether it will truly present as one instance or a collection thereof. What is clear is that realising this idea is not possible in a world of silos and walled gardens. Metcalfe’s law, which states that the value of a network is proportional to the square of its user count, is critical in this context – there is little point in living in a void.
The challenges underlying the metaverse are immense. Human-computer interaction technology is far from ready, with the metaverse potentially being accessible on existing devices but benefiting from improved and more seamless virtual reality and augmented reality experiences, and potentially brain-computer interaction. The storage, networking and computational requirements may be orders of magnitude above anything today. Security will be critical, as will privacy and intellectual property.
For several of these challenges, the Web 3.0 movement may hold the solution. As philosophical as it is technical, its members have been creating tools for building an open, decentralised and democratic internet for the last decade. Can these tools be used to create a more participatory economy, empowering users to go from mere consumers to purveyors of services and goods in a truly globalised world not subject to country borders and geographical disadvantages?
Is a digital economy in sight?
Blockchain networks, whose defining characteristics are the lack of a central authority, may provide a neutral ledger underlying payment and financial services denominated in a panoply of virtual currencies. Smart contracts may mediate transactions and encode appropriate incentive mechanisms. Non-fungible tokens (NFTs), whose market slumped after a Q2 peak in crypto-art transactions, may find their killer application as the metaverse property registry. Tools for decentralised file storage, computation and self-sovereign identity management are already available and undergoing constant improvement.
In parallel, several groups are working on related standards. The adoption of open standards is essential in ensuring that developers can plug their applications into the metaverse, that virtual asset formats can be universally interpreted, and that users can choose which access interface they use.
A fully realised metaverse won’t just be a part of the digital economy – it will be its own worldwide and quasi-independent economy, whose implications may end up reweaving the fabric of society. We must strive to make the metaverse a force for global equality and inclusivity – in doing so, we will also be working towards a better reality.
How the pandemic has created manufacturing’s future leaders
GAMBICA is a membership organisation that takes great pride in the work of its members to champion UK manufacturing. As the pandemic hit last year, two of them – Siemens and Manchester Metropolitan University – teamed up to tackle a major challenge the NHS faced at the time: a lack of ventilators. Statistics showed that only around 8,000 ventilators were available when, based on predictions, an estimated 18,000 would be needed within two months.
To address this, a large group of companies came together under the Ventilator UK Challenge, with Siemens being one of the key consortium partners.
Demonstrating the power of teamwork, engineering and digital tools, the collaborative helped design and build a factory from scratch, and scale production from 10 ventilators to 1,500 per week, within four weeks, a process that normally takes more than 12 months. The historic effort met the brief, saved lives and helped ensure the NHS did not run out of ventilators during the pandemic.
Manchester Metropolitan University is focused on bridging the digital skills gap through its focus on Industry 4.0 and industrial digitalisation, and to that end, it is one of the founding university partners in the Connected Curriculum.
Connected Curriculum brings partner universities together with Siemens and German automation company Festo, to ensure that academia and industry are aligned and that students are gaining the skills and knowledge industries are looking for in the new digital world. It bundles industrial hardware and software with simulation environments, data, curriculum examples, case studies and real-life problem-solving tutorials.
Similar to the situation the Ventilator UK Challenge consortium faced, universities had to meet the challenge to shift to fully online learning and create new content suitable for a digital environment that was still engaging.
A team of academics at Manchester Metropolitan University, led by Aris Alexoulis and Gary Dougil, worked with the Siemens Connected Curriculum team, engineers and apprentices to develop a challenge for students based on the Ventilator Challenge, and which could be embedded into the curriculum. The challenge was embedded in the second-year group engineering project unit, where teams of students from different engineering disciplines are formed to address industry-led challenges. Because of the pandemic, the university switched to a block delivery approach and units were delivered in six-week blocks.
This is a great example of the dynamic culture within the university, and the willingness to engage with industry and move at pace to implement new initiatives. The Department of Engineering has very strong links with industry and has a particularly active industrial advisory board, with collaboration happening on numerous fronts to help students develop skills for their future careers.
The ventilator challenge project was very popular among students, with the demand to join the project exceeding capacity. Participants were asked to design a manufacturing process that would produce more than 10,000 ventilators within a 12-week period: at their disposal were the Medtronic Open Source Ventilator design, a budget of £50 million, and an option of two assembly locations. Medtronic made the design of its ventilator freely available online during the pandemic so that ventilators could be produced to help save lives.
The students were also provided with access to Siemens Tecnomatix, Siemens’s in-house plant simulation software, which they had not used before. They also had access to Siemens training content for Tecnomatix through Siemens Xcelerator Academy, and support from the academic team at Manchester Met and Siemens engineers and apprentices.
All groups were successful in designing manufacturing processes that met the requirements of the brief. To do this, the students had to firstly calculate the process times using the Methods Time Movement – Universal Analyzing System (MTM-UAS) by breaking down the instructions for station operators in the manufacturing documents provided by Medtronic to individual movements. Once process times have been obtained a calculation of the talk time was performed.
Various shift patterns were considered, all in compliance with current UK regulations. Subsequently, an iterative simulation process was carried out using Tecnomatix for the assembly process to meet the desired takt time, while also producing a realistic model. Examples of additional considerations were workstation design, plant location selection and layout, Covid-secure measures (such as social distancing) and full product costing.
The groups of students worked together remotely, most of them never meeting physically during the entire project. They developed new skills that are in high demand in industry, such as being able to create a digital twin of a shopfloor environment and virtual commissioning.
This alliance is just one of many examples that demonstrate how UK industries, when called upon, can work together to conquer unforeseen obstacles. This has led to some students pursuing careers in manufacturing. These are our future leaders of the industry, and they will be the champions that drive the digitalisation of manufacturing.
Five ways the internet era has changed British English – new research
The dramatic changes in technology over the past 20 or so years, from the internet to the smartphone and digital assistants like Alexa, have made communication more accessible than ever before. We have created an online world where we post, share, comment, express views and seek information as well as relationships. These changes have also transformed the language we use.
Our new study based on the British National Corpus 2014 (BNC2014) – a 100 million-word sample of current language – shows us just how language has changed in the internet era. This data was contrasted with the original British National Corpus 1994 (BNC1994) – a comparable data set which samples British English from the early 1990s.
The study employed a methodology called corpus linguistics, which analyses large amounts of language using specialised software. The method allows researchers to search and compare word frequencies across different texts and genres, revealing the patterns and trends in language over time. The software used in this study was developed at Lancaster University and is freely available for download together with the data.
Here are some of the most striking changes:
1. We’ve become more informal
Our study revealed that overall, British English has become much more informal. This is true not only in blog posts and social media, where informality would be expected, but across the whole spectrum of genres, from fiction to newspapers, political speeches and academic writing.
Take the example below, from a recent academic paper -– a genre that has traditionally been perceived as formal. What is new about the language of this text is the high frequency of informal features like contractions (isn’t) and second and first person pronouns. This is something that would be fairly unusual before the internet revolution.
For at least on a popular Christian conception, when you believe something truly on the basis of faith this isn’t because of anything you’re naturally competent to do…I argue in this article that there’s no deep tension between faith-based knowledge and virtue epistemology.
2. We use ‘Mr and Mrs’ less often
Compared to 20 years ago, we are now more likely to address people using their first names than by more formal forms of address. The frequency of use of Mr and Mrs has decreased by 30 per cent and 56 per cent, respectively. The decrease in the use of Mrs has been partly counterbalanced by the increase in the use of Ms, but the overall decrease in the use of all the formal forms of address combined is 33 per cent.
3. ‘Elanguage’
The internet has transformed not only how we use language, but also the words themselves. The following terms, acronyms and spellings are part of a register known as “elanguage”: Alexa, app, awesome, blog, congrats, email, fab, Facebook, fitbit, Im, Instagram, iPad, iPhone, Ive, Lol, omg, tbh, tweet, Twitter and website.
Each word in this list has a story behind it. Take, for example, the word app, which is somewhat symbolic for the technological revolution. Although the first uses of this term are from the early 1990s, there are only a handful of examples of this word being used in the 100 million words of the BNC1994. One example, from a computer magazine:
To run your average Windows app you’ll need 4Mb of RAM, a 100Mb hard disk.
In the early 1990s, the term used to refer to an app was software with 9,356 examples in the BNC1994. Nowadays, software is used much less frequently with a 49 per cent decrease in use. On the other hand, app has considerably increased its frequency of use in elanguage (167 per million words) as well as in general British English (41 per million words).
4. Farewell to modals
The use of modal verbs such as must, may and shall has reached new lows. Must is now used just over 350 times per million words, a 42 per cent decrease over the last 20 years. May marked a similar decrease (41 per cent) as must, while shall changed even more dramatically, a 61 per cent decrease.
These changes are associated with the overall shift of British English towards informality. The following sentences, both from BNC1994, now sound slightly old-fashioned and formal:
Of course, we shall not be staying here long.
May I take my jacket off, please?
The decrease in the frequencies of modals started in English at the beginning of the 20th century, when must and may appeared well over 1,000 times per million words. Shall has always been the verb with the lowest frequency (400 per million words at the beginning of the 20th century and 64 per million words in present-day English). The graph below shows a clear trajectory of decrease of the core modals in English. If the trend continues at the same rate, these modals will be practically out of use by 2050. Note, however, that language change rarely follows a straightforward linear pattern of decrease.
5. Punctuation
Language change is also demonstrated in subtle linguistic features like punctuation marks. These indicate how long our sentences are, and what message and tone these carry: statements, questions or exclamations.
Most common punctuation marks are used more frequently now than they were in the early 1990s. This is particularly noticeable in the case of question marks (64 per cent increase) and exclamation marks (103 per cent increase). This might be a sign of language becoming more interactive and carrying a more emotional load. There is a small (5 per cent) decrease in the use of semicolons, which are typically used in a more formal style of writing.
The corpus study offers a unique insight into the changes to lexical and grammatical features of British English over the years – only a few examples of which were given in this article. These reflect changes in technology as well as society. While language is always changing, the unprecedented access to a variety of forms of language on the internet, where one doesn’t need to be a fiction writer or a journalist to reach thousands or millions of readers, has accelerated informalisation of language.
Vaclav Brezina, Senior Lecturer in corpus linguistics, Lancaster University
This article is republished from The Conversation under a Creative Commons license. Read the original article.