Gartner, Inc. announced its top 12 strategic technology trends for 2022 and beyond. Analysts presented their findings at the Gartner IT Symposium/Xpo 2021, held virtually for the second year in a row, due to the pandemic. Gartner Research Vice President David Groombridge emphasized that just as 2020 and parts of 2021 found companies focused on survival, the future will focus on a return to the path toward growth. Just as survival required more creative use of technology, the path to growth will also emphasize creative use of technology, not so surprisingly. Gartner’s strategic technology trends for 2022 and beyond are:
Hyperautomation
Automation is a critical ingredient for digital transformation. Hyperautomation suggests a faster path to identifying, vetting, and automating processes across the enterprise. Gartner noted that areas to focus on in order to best accomplish this include improving work quality, hastening the pace of business processes, and fostering nimbleness in decision making.
Generative Artificial Intelligence (AI)
Gartner notes an increase in interest and investment in generative AI in the past year. Generative AI references algorithms that enable using existing content like audio files, images, or text to create new content. Gartner predicts that in the next three and a half years, generative AI will account for 10% of all data produce compared to less than 1% at present. Case examples offered included supporting software development more generally, assisting companies in finding candidates to fill talent shortfalls, and identifying drug candidates more readily.
Data Fabric
Gartner defines data fabric as a design concept that serves as an integrated layer (fabric) of data and connecting processes. This fosters resilient and flexible integration of data across business users and platforms. The upshot is that it can reduce data management efforts substantially while dramatically improving time to value.
AI Engineering
The staying power and lasting value from AI investments have been mixed across many companies. An issue is that some companies deploy an AI model once and expect that value will accrue in perpetuity, Gartner notes that sustained efforts and model evolution must be driven to gain more from these investments. Groombridge noted that AI engineering adoption should lead to three times more value for AI efforts.
Autonomic Systems
Although it is early days in the life of autonomic systems, the next half-decade should yield increased value from it. “Autonomic systems with in-built self-learning can dynamically optimize performance, protect [companies] in hostile environments, and make sure that they’re constantly dealing with new challenges,” Groombridge noted. This trend anticipates greater levels of self-management of software.
Decision Intelligence (DI)
Decision intelligence aims to model decisions in a repeatable way to make them more efficient and to hasten the speed to value. It anticipates doing so through automation that enhances human intelligence. Gartner predicts that in the next two years, one-third of large enterprises will use DI for better and more structured decision-making.
Composable applications
The idea of composable applications highlights that the functional blocks of an application can be decoupled from the overall applications. The component parts can be more finely tuned to create a new application that is of greater value than its monolithic predecessor. Gartner notes that companies that leverage composable applications can outpace their competition by 80% regarding new feature implementation.
Cloud-native platforms (CNPs)
Gartner believes that cloud-native platforms, which leverage cloud technology’s essence to offer IT-related capabilities as a service for technologists, will provide the foundation for most new digital initiatives by mid-decade.
Privacy-enhancing computation (PEC)
Privacy has been an increasingly important concern and priority across the business landscape. Privacy-enhancing computation can protect a company’s and its customers’ sensitive data, protecting the confidentiality of data. Gartner hypothesizes that this is a pathway to maintain customer loyalty by decreasing privacy-related issues and cybersecurity events, and it believes that roughly 60% of large enterprises will leverage these practices by 2025.
Cybersecurity mesh
Cybersecurity mesh is a form of architecture that provides an integrated approach to security IT assets no matter their location. It provides a more standardized and responsive approach to cybersecurity by redefining the perimeters of cybersecurity to the identity of a person or a thing. This is a pathway to reduce the financial implications of cyber incidents by 90% in less than two years, according to Gartner.
Distributed enterprise
Gartner is a believer in the value of the hybrid approach to work, believing that those who enable it fully will achieve 25% faster revenue growth than peer companies who do not. This model allows employees to work in a geographically distributed fashion, opening up new pathways for talent acquisition.
Total experience (TX)
The pandemic has certainly led to an evolution, and in some cases a revolution in customer and employee experience, especially as it pertains to the digital versions of each. By managing each effectively, enterprises should drive better outcomes. Gartner suggests that natural silos relative to innovating around the customer, employee, and user experiences must be broken down so that a more holistic approach might be achieved.
Peter High is President of Metis Strategy, a business and IT advisory firm. He has written two bestselling books, and his third, Getting to Nimble, was recently released. He also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.
Most companies of consequence have a chief information officer. Many others have chief technology officers, who might be the heads of product and engineering for a tech-centric company, or, for some non-tech sector companies, might be the heads of infrastructure or tech-savvy leaders reporting to less technical chief information officers. A growing number of companies have chief digital officers, as well, often signaling the need to have an executive oversee digital transformation efforts exclusively. There are examples where the top tech and digital chief has one or a combination of these titles. The combination of all three roles for three separate executives occurs less frequently, needless to say, but less frequent still are examples of companies with execs with these three titles each of whom report to the chief executive officer. One such company is Johnson Controls.
Johnson Controls is a 136-year-old, Milwaukee-based company that develops products and services that enhance the intelligence of buildings to the tune of nearly $30 billion in annual revenue. Mike Ellis is the company’s chief customer and digital officer, adding customer responsibilities to the CDO title. He joined Johnson Controls in October 2019. Diane Schwarz is the company’s chief information officer, who joined the company in August of 2020. Finally, Vijay Sankaran is the company’s chief technology officer, and he joined the company in May 2021.
Ellis describes his role as chief customer and digital officer as deciphering the impact of the company’s efforts on customers, engaging them to understand what is most important to them. The goal is to innovate in collaboration with them, identifying ideas that will make a difference in their operations. Additionally, Ellis is responsible for digital product innovation and enterprise marketing, as the CMO reports through to him.
Schwarz has been a CIO multiple times over at companies like Hunt Consolidated and Textron. She has what she refers to as the traditional CIO purview of infrastructure, applications, and websites. Beyond that, she owns the customer experience, including “how our employee operates with all of our applications, how they get the day-to-day job done,” she noted. Schwarz added, “Mike owns the customer’s experience with our products, but then when you have the overlap of the Venn diagram, as the customers interact with portals, billing and how to schedule a ticket for field service; that’s where it goes back into the CIO responsibilities. It’s not, black and white to say that everything the customer interacts with Johnson Controls is under Mike’s umbrella. We have to navigate what really is the product experience versus the application experience.”
Sankaran has also been a CIO previously at TD Ameritrade, where he also ran an innovation program for the company. He oversees products for Johnson Controls. “When we think about product, it’s really the game-changing part of what’s going on in our industry right now – the software part of that product,” he said. “[We work on building] the right thing and build the thing right. My focus is all around building the thing right and building out a world-class digital software engineering organization at Johnson Controls.” His team’s focus is on edge Internet of Things (IoT) through a software and data platform called Open Blue. It is a platform that allows Johnson Controls’ customers to drive energy efficiency and sustainability by managing their spaces, smart buildings and then applying artificial intelligence [AI] and machine learning [ML] to be able to generate those insights. This creates a closed-loop so that we fully get to the smart autonomous buildings.
“We’re building the software and all the connectors and the data structures and the AI models in my new organization to support that and work closely with Mike around the customer needs and experiences, and closely with Diane’s organization around the broader ecosystem of service and support and infrastructure and cybersecurity to make sure that the pieces that overlap in that Venn diagram come together seamlessly,” noted Sankaran.
The group that now reports to Sankaran to bring this to life used to partially report to Ellis, who recognized the value in unifying the edge software engineering capabilities together with the integrated Open Blue platform. This has proven to be a strategic differentiator for the company. Sankaran has accelerated Ellis’ vision by implementing the scaled agile framework across the group to accelerate speed to market.
Schwarz noted that a key to determining where one’s responsibilities begin and the next one’s ends boils down to solid communications both informal and formal. “We absolutely get that we need to work productively on figuring out the handoffs and providing clarity to our teams,” said Schwarz. “[We are] a company going through a huge transformational shift to become digital to the core. The kinds of problems that we’re solving are new to the organization.”
When asked about the formal structures in place to facilitate the forging of strong bonds across the company, Schwarz offered the example of cybersecurity. There is an enterprise cybersecurity group, which reports to her, and there is a product cybersecurity team that reports to Sankaran. Though there is some overlap between what they do, they are distinct disciplines. Schwarz and her enterprise chief information security officer (CISO) attend Sankaran’s product cybersecurity briefings, and likewise, Sankaran and his CISO attend Schwarz’s enterprise cybersecurity briefings. This is indicative of a broader desire to keep each other informed especially in the areas where roles overlap.
Ellis notes that the approach Johnson Controls has taken in defining these roles and responsibilities has facilitated the 136-year-old company moving from industrial speed to the speed of a software company. It speaks volumes as to the company’s commitment to a digital future that it has three leaders of such consequence reporting to the CEO of the company. To have that degree of digital sophistication represented at the executive level bodes well for the company to accomplish its goal of becoming digital to the core.
Agile has become the most prevalent software development methodology, with 95% of companies noting they use Agile in some form, according to the latest State of Agile report. As Agile enters its third decade, it is not a question of whether to use Agile, but which flavor of Agile to use.
In our work with companies of all sizes over the years, we have found that while many organizations purport to “do Agile,” they do not necessarily deliver the higher quality, appropriately prioritized software that Agile promises.
Cultural barriers and organizational misalignment often get in the way of realizing the true value of Agile. Indeed, respondents to the survey above cited resistance to change, lack of leadership participation, and organizational culture at odds with Agile values among the top challenges to adopting Agile practices.
In this article, we will provide a brief overview of the Agile methodology and discuss five characteristics that have helped leaders address common challenges and realize greater value from their Agile implementations.
Why Agile?
Agile methodology prioritizes delivering software in an incremental and iterative way. The way we define Agile today has its roots in 2001, when a group of software practitioners formulated the Agile Manifesto. Unlike prior approaches, in which software was developed in silos with little input from customers or business partners, Agile methodology prioritized an iterative development process that emphasized collaboration and adaptability.
Why do so many organizations choose Agile? Those familiar with linear “waterfall” software development lifecycles will remember how slow, counterintuitive, and frustrating it could be to complete a project. Project managers spent most of their time making plans and adjusting them daily, while engineers found themselves torn between actually developing software and re-estimating months of work based on changing requirements. Users were rarely happy with the end product, and despite lots of negotiation it rarely felt like anyone was “winning.”
While waterfall development has a role to play in some IT projects, much of the corporate world has embraced Agile to jump-start software development and delivery efforts. When implemented well, Agile can lead to high-quality software delivered frequently and built with the end-user in mind.
In our work with Agile teams across large companies, we have observed the following five characteristics of successful implementations:
1. Executive buy-in and commitment
Any organization that wants to start on an Agile path or improve its existing Agile practice must begin with a real commitment from executive leadership. For an Agile initiative to be successful, leaders need to possess the Agile mindset and be determined to lead and support their employees through the transition.
Most organizations that fail at their Agile initiatives miss this first step. We frequently see that leaders fall at two extreme ends of the spectrum: they are either micromanagers or they are absent. The best Agile leaders, on the other hand, give teams the autonomy to do their work while removing roadblocks and acting as a guide to ensure that goals are clear and the work contributes to the broader vision. Effective Agile leaders allow their employees to fail while creating mechanisms to learn from failures so that they are not repeated.
We see most successful implementations of Agile in organizations where leaders guide and inspire, establish the right framework, and empower their teams to do their best work. Leaders do this best by listening to their teams and trusting their judgement in the way they do their work.
2. Choosing the right process
As mentioned earlier, these days it is not a matter of whether to use Agile, but rather what flavor of Agile to use. Below are a few common approaches your teams might choose:
Scrum is the most commonly used Agile methodology for organizations that want to develop products incrementally in short iterations, with more than 75% of respondents to the Agile survey noting they use some version of it. Scrum is frequently used interchangeably with Agile, and most Agile teams today will use basic pillars of Scrum such as Sprint Planning and Daily Standups. Those whose projects involve high levels of uncertainty may select Scrum because it allows teams to share progress frequently and pivot as needed.
Many mature Agile teams favor Kanban, an Agile framework for continuous work with limited throughput, or scenarios in which teams may be working on only a handful of tasks at one time. A typical Kanban team will have work requests coming in regularly, and the team will release on a continuous basis. This approach tends to work well for teams with work that is more operational or “keep-the-lights on” in nature, such as minor feature updates or bug fixes.
Organizations that want to expand their Agile practices to large programs or portfolios often select a scaled Agile framework. SAFe®, as it is known, is the most prevalent framework for enterprise-level implementations of Agile. This is often the choice for large programs with multiple teams and intricate dependencies. These large programs are typically a combination of Scrum and Kanban teams.
The best way to select the right flavor for your organization is to first observe and listen. Experienced Agile Transformation leaders will assess existing teams, tools, and processes to understand the current state of existing Agile practices. They will then pair those findings with the strategic goals of the business to choose the most appropriate implementation.
3. Team structures that fit the company’s goals and culture
Once leadership commits to the process and an appropriate Agile methodology has been selected, it is time to begin the “practice” of Agile.
Regardless which methodology you choose, two things are critical to a successful implementation: team structures, and the roles and responsibilities within those teams.
The Agile methodology has clearly defined roles with very specific responsibilities. The Product Owner owns the vision of the ultimate goal and is responsible for setting priorities to bring value to the customers quickly. Scrum Masters are servant-leaders, responsible for removing impediments and ensuring that the team adheres to Agile principles. Delivery Teams, which can include team members with different areas of expertise depending on the project, are responsible for producing high-quality products.
Clear roles and responsibilities prevent confusion. Without them, things fall through the cracks and there may be friction between team members with overlapping roles or reporting relationships. For example, some organizations may choose to appoint someone’s direct manager as a Product Owner. As work commences, the direct report working on the team may find it difficult to know when they are hearing from their boss, who can mandate how and when certain work gets done (and makes compensation and promotion decisions), or from the Product Owner, who does not dictate how the work gets done. Having a boss as a Product Owner can also diminish the sense of ownership a person has about their project.
The second most common mistake we find occurs during the formation of teams. Whatever Agile methodology an organization chooses, there are common aspects of successful Agile teams:
Teams with these qualities often will be better prepared to produce their best work while also adapting to changes in technology or customer demands. When teams continuously deliver products that meet customers’ needs, trust will continue to develop between teams and management.
Two of the most common and easy-to-fix mistakes we see involve team size and skillset. Teams that are too large often lead to longer meetings and time to align. Teams lacking cross-functional skillsets are more dependent on other teams. In both cases, teams risk increased complexity and potential for errors.
4. A true commitment to continuous learning
Implementing Agile at scale requires a commitment to continuous learning. Rather than conducting a post-mortem analysis at the conclusion of a project and filing away the findings, Agile puts specific emphasis on Kaizen, which means continuous improvement. The concept, which comes from the Toyota Manufacturing System, aims to eliminate waste by looking for product and process quality improvements throughout the entire development cycle.
In Agile, work is broken down into smaller increments so that learning from each increment can be applied to the following increment. Agile teams will conduct Sprint Retrospectives at the end of each one-to-four-week increment where they discuss and document what went well and what could be done better going forward. They then take these learnings to make the next increment more effective.
The importance of continuous learning is often overlooked. Leaders should allow their teams to fail and learn from those failures, while providing appropriate guardrails to ensure the team is not taking on undue risk. It is critical that teams not only hold regular and honest retrospectives, but that they also act on those findings and track progress. Too often, these retrospectives can become a routine activity that does not add value. By checking in frequently to discuss lessons learned, teams can quickly determine whether a product is meeting customer needs or changes they can make to their internal processes to ensure smooth delivery.
5. The right metrics
When measuring Agile maturity, teams should consider both hard and soft metrics.
Hard metrics are often quantitative data that can be obtained from the tools that teams use. They include:
It is important to evaluate hard metrics over a defined period of time in order to measure continuous improvement. After collecting data for at least four to six weeks, leaders will begin to see whether a team is improving or remaining stagnant. Generally, teams that embrace Agile values deliver what they commit to and increase their velocity over time.
Soft metrics are more qualitative in nature and are usually obtained using surveys and observations. We find that high-functioning Agile teams often have:
An effective Scrum Master, for example, will regularly check in with the team to ask for their level of satisfaction with the project and process. High-functioning teams respect each other’s feedback, are open to discussing difficult issues, and support one another throughout the process. From the outside, a mature Agile team will look like a well-oiled machine. Teams will be producing high-quality, innovative work that is validated in increments, and they likely will have fun doing it!
As companies continue to deploy Agile practices across their organizations, it is important to remember that it is a journey of continuous improvement. Agile is a way of thinking, and it best serves organizations when it grows and evolves with the organization’s needs. By choosing the right flavor of Agile, building cross-functional teams with clear roles and responsibilities, and practicing strong leadership from the top, companies will be better positioned to ensure that they can deliver the value that Agile promises.
Another Metis Strategy Digital Symposium is in the books. Thank you to all of you who joined the session and to the global CIOs, CEOs, and entrepreneurs who shared their insights. More than ever, it is critical for leaders to tap into their ecosystem of peers and advisors for information, wisdom, and support as organizations navigate this complex and uncertain environment.
Below are a few takeaways from the event. Check out our YouTube channel and the Technovation podcast in the coming weeks for recordings of individual panel discussions.
Culture is key in the transition to hybrid work. Nearly 60% of attendees noted cultivating a strong culture among teams as the greatest risk to operating in a hybrid work environment. With many return-to-office plans in flux and a new wave of employees joining firms without stepping inside an office, executives continue to place a strong emphasis on employee experience, creating new norms around equity, inclusivity, and productivity, and creating new ways for teams to engage in a hybrid setting. For technology leaders, that also includes managing a growing ecosystem of collaboration tools and emerging technologies to find the mix that works best for their organizations.
Just as CIOs helped pave the way for remote work, they also will have a role to play in helping peers understand the art of the possible regarding the future of work. The road ahead is far from clear, but today’s technology leaders are adapting people, processes, and technologies to help create organizations that can pivot quickly in the face of change and seize new opportunities as they arise.
Innovation comes from empowered teams. The ability to innovate at scale continues to rise in importance as organizations work to future-proof their operations and drive enterprise agility. To do so, a number of executives said they are exploring how to democratize innovation capabilities across their companies and unlock the full potential of their teams. Debra King, SVP, Chief Information Officer and Chief Transformation Officer at Corteva Agriscience, discussed how she and her executive team developed a culture of ownership across the organization in which team members at any level in the company were empowered to come up with an idea and execute it. The leadership team then focused on removing roadblocks and providing resources where needed.
Similarly, Tim Dickson, Chief Information Officer at Generac, discussed how the company’s first hackathon spurred new ideas while revealing pent up demand for employee upskilling. Sixteen teams participated, and over half of the ideas presented have been implemented as production deployments, Dickson said. Generac also launched a digital center of excellence that helped scale the internal capability to bring new ideas to life quickly. These new ways of working made employees feel as if their voices were being heard, while providing an avenue to develop those ideas into new products and services for the company.
Security is critical to creating strong customer experiences. Technology leaders are taking greater responsibility for the ways their organizations’ products and services impact the customer experience, and security is an increasingly critical element of that. Mickey Boodaei, CEO of Transmit Security, which received the largest-ever Series A funding round for a cybersecurity company, shared his perspective on the move toward a passwordless future, the evolution of identity and authentication, and the fine balance between security and user experience.
For consumers, identity is critical to processes such as account opening and credential validation. Too little focus on security and vulnerabilities or compliance risks may arise. Too many security measures and the user experience becomes an obstacle. As authentication technology advances and passwords continue to pose a security threat to consumer accounts, Boodaei anticipates organizations will make a concerted effort to go passwordless.
Companies scale up AI efforts. As companies continue to refine their data strategies and identify opportunities to turn data into actionable insight, significant analytics and AI deployments are only expected to grow. Nearly 40% of respondents said they expect analytics to be their greatest area of investment in the year ahead.
Machine learning and AI, paired with an increasingly sophisticated understanding of customer needs, is powering new waves of innovation across industries. Barbara Lavernos, Deputy CEO for Research, Innovation, and Technology at L’Oréal, described an experience that crunches data to provide customers with personalized advice on their beauty routines. The company is also using AI to mine its extensive store of historical data as well as real-time consumer information to deliver cutting-edge products. For example, L’Oréal has trained an AI algorithm to read the thousands of online customer ratings and reviews of the company’s makeup products. With real-time insight, research and innovation teams can then make relevant product changes and target advertising more effectively.
At Johnson & Johnson, new technologies have enabled the company to reimagine consumer health and deliver care for patients in new ways. Augmented reality and virtual reality, paired with AI, have helped train surgeons eight times faster by combining digital imagery with insights about how to perform the best surgical procedures. AI and digital twins have helped Johnson & Johnson accelerate enrollment in COVID-19 vaccine trials and improve batch production of vaccines, from one batch every two weeks to two batches every half week.
Embracing change and becoming nimble is more important than ever. Of the tips IT leaders shared about sustaining a competitive advantage in the current environment, the most common was the ability to be nimble. That means being able to pivot quickly when the market changes, seize opportunities as they present themselves and stave off issues as they arise. Indeed, more than 75% of attendees said creating a culture that embraces uncertainty, as well as the ability to pivot quickly, would have the greatest business impact over the next six to 12 months.
Companies are making a number of changes to make their organizations more nimble, including transforming their operating model, adopting new technologies, upskilling employees and bringing in new talent, and driving innovation through partnerships.
Nimbleness is at the heart of many of today’s technology transformations, including the shift to embrace cloud, APIs, and other technologies, said Bernadette Nixon, the CEO of Algolia. These modern software architectures ultimately allow organizations to move more quickly and evolve their systems to support market shifts, further empowering teams to become more efficient and nimbler in their processes.
We hope you’ll join us for our next Metis Strategy Digital Symposium on December 9, 2021. Stay tuned to our website for more details.
Toyota Financial Services (TFS) is a 35-year-old, wholly-owned subsidiary of Toyota Motor Corporation and is the largest auto finance company in the U.S. with $125 billion in managed assets. The company’s offering includes lending payments, banking, and fleet financing, as well as insurance and protection products to consumers and dealers of Toyota, Lexus, and through private-label partner brands. The emergence of private-label partnerships has been a new part of the company’s operating model, but it was enabled through a radical transformation led by the company’s CIO, Vipin Gupta.
When Gupta joined TFS nearly three and a half years ago, he found a well-run IT organization, though he recognized that it was quite traditional. He was worried the IT department was not ready for the digital transformation necessary to be a bigger, strategic contributor to the company. Gupta faced a choice as to how best to proceed. “[I could] either fix the IT organization or redesign the next version of Toyota Financial Services in a grander way and use technology as a catalyst to design a new business model for Toyota Financial Services.” He chose the latter. Gupta continued, “The question that I used to ask was, ‘How would we design TFS if we were born today?’ If you were born in this digital world, the version of TFS [would] look very different, and the idea was, instead of trying to fix IT, let’s try to design that version, try to realize that [digital] vision of TFS.”
Gupta saw the opportunity to leapfrog the current standard and to make TFS into a platform for other brands to run their captive financial services on. “To do this, we needed to build a completely new technology chassis from the ground up with a multi-tenant architecture that allows us to run multiple brands on a shared infrastructure, but still keeps the data separate,” noted Gupta. The key in his mind was to transform behaviors before transforming technology. By first changing the way the team worked, the technology modernization pathway was clearer. The change required rethinking the way in which the company collaborated, the way new solutions were designed. “The best of strategies will fail without a culture that complements that aspiration,” said Gupta. “On the technology front, our vision is clear. We will use the cloud, and we will design a multi-tenant platform to deliver mobility finance as a service.”
When asked how the culture change was facilitated, Gupta noted how addressing three main points formed his gameplan, each using speed as the key performance indicator. First, there was a need to change the speed of decision-making. Second, there was a need to increase the speed of collaboration. Third, the team needed to increase the speed of engineering.
Speed of decision-making was the lynchpin according to Gupta. “Decision-making is the biggest barrier to speed and flexibility in an organization,” he noted. “The largest waste in IT projects is not in engineering. It is in decision-making and the lack of clarity. If you make decisions quickly supported by data and communicate decisions clearly, the team will consistently deliver with high quality and efficiency.” The key is to start this change from the top of the organization. Leaders needed to become more agile. Gupta facilitated the creation of new scrum-based routines for TFS’s executive team.
To facilitate the speed of collaboration, the digital organization needed to operate as a single ecosystem rather than separate silos. “Any business is a perpetual machine,” said Gupta. “It’s not a collection of time-bound projects. It needs durable teams led by subject matter experts, not by project managers only. These teams need to follow repeatable routines to maintain a continuous dialogue and prioritization.” Gupta developed a product orientation to the company, bringing together skills and teams from across the company aligned with the products that were defined. This common means of operating across product teams created greater output, but it also created greater levels of understanding and empathy across teams. Team members from across product teams shared information and learnings in ways that had not been the norm previously.
Changing the speed of engineering started with an acknowledgment that software is TFS’s product. As such, the company needed to become masters of its own technology. “We need to be as good at software engineering as [Toyota is] at automotive engineering,” said Gupta. “Inspired by our automotive factories, we built digital factories using the lean manufacturing practices of Toyota that have long been admired [the world over]. Just like automotive factories, the new digital factories were formed. They’re founded on consistency and standardization of behaviors, practices, and routines. We developed a new software engineering methodology that combines Toyota manufacturing practices with agile and scrum practice of software development.”
By increasing speed across these three vectors, the company was able to transform in months when years was the going-in assumption of what was possible. The key was to begin with the behavioral transformation. Gupta underscored that the focus on transforming habits before transforming the platform was a game-changer for TFS.
In order to ensure that the entire company and not just the technology employees raised their digital acumen, two years ago Gupta founded the TFS Digital Academy. “Harnessing the power of software is not just IT’s job; it is everyone’s job in a digital company,” noted Gupta. “The idea was not to just to train IT, but to train everyone across the organization, and whether they are employees or consultants, everyone will be trained in the new practices, new methods, new approaches, new behaviors.” This leveled the playing field and ensured that that level was much higher than in the past.
All of these changes have enabled the IT department to grow its contribution to the company’s success without growing costs. The new way of working has “reduced waste dramatically,” according to Gupta. “We’ve been managing our expenses in a very disciplined way, and we are now open to partner with any automaker, mobility provider or services provider, who wants to offer high quality, captive financial services for their brand to their customers and dealers.” As such IT’s transformation has been critical in developing the new private-label business. Mazda was the first partner to engage through Mazda Financial Services. Mazda gains mightily through the partnership by focusing on its products while leveraging the capabilities, talent, and quality of TFS.
The future will include adding more brands to this model, but Gupta also sees the possibility of additional products and services. These will include insurance and payments in the used car business, for example.
Gupta has achieved a tremendous amount in less than three and a half years in his role. With the digital innovation engine that he has created with speed as the metric, no doubt this is just the beginning of what he and the team can accomplish for TFS.
When Sweetgreen CEO Jonathan Neman co-founded Sweetgreen 14 years ago, he and the founding team saw a remarkable opportunity to embrace technology both as a means to enhance customer experience, but to do the same for employee experience. The fast-casual restaurant was founded in 2007 in Washington, DC by Neman, and two friends who were fellow undergraduates at Georgetown University: Nicolas Jammet and Nathaniel Ru. (The company moved to Los Angeles in 2016.) Neman referred to how the company became a pioneer in online ordering, which would serve them well during the pandemic, as well as in helping manage the company’s supply chain, since most of the produce used in the company’s salads are procured in partnership with local and regional producers.
Neman underscored that the way technology has aided customer experience is through speed, choice, and personalization. “We want to lower the barriers to entry and make it more accessible to eat healthy food in line with our mission,” he said.
Neman quickly added that the company is in the early stages of its transformation. “While we’re probably a decade into the digital transformation, we’re still in the very early days in terms of how technology is going to disrupt the restaurant business and the food business. As a business gets to over 50% digitized, you can start to re-imagine the business model in a lot of ways.”
Neman sees tremendous advantages derived by the digital penetration of Sweetgreen’s business pre-pandemic that served it well during trying times for the industry across the past 17 months. “Where the rest of the world was playing catch up in terms of technology integration into the [customer] experience, we were built upon that idea, those ideals, and it was native to the experience already.” As a result, customers did not need to pivot too dramatically in order to eat at Sweetgreen during the pandemic.
As Sweetgreen has scaled, the business has grown in complexity. Therefore, the time was right to identify a seasoned leader to act as a steward for what is to come as the company continues to scale. Thus, Sweetgreen has hired Wouleta Ayele to be the company’s new chief technology officer effective August 17. She joins the company from Starbucks where she spent nearly 16 years, ending her tenure there as the senior vice president of technology. “When we met Wouleta, we were blown away by her leadership, her experience, and her perspective,” said Neman. “We thought she’d be the perfect partner to lead us through this next stage of our growth.”
For her part, Ayele was drawn to Sweetgreen based on the company’s mission. “It’s an innovative company that’s leading the way to a healthier future, and I wanted to be part of it,” she said. “The kind of talent that they’ve hired excited me and energized me, as well.”
Having been in food retail for so long, Ayele recognized that her experience will be helpful for a company that wishes to develop the reach and influence of the company she just left. Thus, she counts understanding what it takes to scale from roughly 130 stores the company currently has to an order of magnitude more than that. “Having a clear vision and strategy for [technology and its evolution], I take full, clear accountability for leading the charge on that,” noted Ayele. “[Another] area of focus will be delivering brand-differentiating capabilities. Also, leading with next-generation capabilities, data, and analytics while fostering efficiency will be a focus, as well.” She hastened to add that she views the work ahead as building upon the great work her new team has already done rather than a need to reinvent the technology function within Sweetgreen.
Neman underscored that the pandemic has taught us all to expect the unexpected and to ensure that the company fosters nimbleness as it plans for the future. “Instead of trying to predict the future in terms of what our customers or team members are going to want from a technology perspective, one of the ways in which we think about it is building and architecting a system that allows us to move at the speed of culture,” he said. “As the customer changes and as the business changes, we’re able to continuously stay ahead of those changes.”
Ultimately, Neman believes the pandemic has increased scrutiny on health. This has been an added advantage to the company as it has grown. “Sweetgreen has what I call the trifecta of healthy food, which [is that it] makes you feel good, [it has] an addictive quality and [we have] a customized and personalized [menu], which means you can eat Sweetgreen in every single day and eat something different every day for the rest of your life.”
Join best-in-class technology leaders to learn how today’s top companies are driving digital transformations and maintaining an innovative edge amid a time of unprecedented change and uncertainty.
Our agenda is below. CIOs and other technology leaders, register here to reserve your spot today, and stay tuned for more updates.
Noon
Welcome
Welcome and introduction to the Metis Strategy team.
Peter High, President, Metis Strategy
12:10 – 12:25
Fireside Chat: Barbara Lavernos, Deputy CEO, L’Oréal
Barbara shares lessons from the company’s remarkable transformation, which has fused science and technology to create cutting-edge beauty products and design new digital journeys for customers.
Barbara Lavernos, Deputy CEO for Research, Innovation, and Technology, L’Oréal
12:25 – 12:45
Panel: Digital Acceleration and Innovation in Times of Uncertainty
By all accounts, the global pandemic has further accelerated the already rapid pace of digital transformation and increased the urgency for more robust business capabilities across all aspects of organizational operating models and business ecosystems. In this context, many organizations have found ways to strengthen business capabilities for the benefit of all stakeholders. The global CIOs of Corteva Agriscience and Johnson & Johnson will share how their teams have found unique ways to innovate, achieve higher levels of agility, and build sustainable resilience in the face of ongoing uncertainty.
Debra King, SVP, Chief Information Officer and Chief Transformation Officer, Corteva Agriscience
Jim Swanson, EVP & Enterprise CIO, Johnson & Johnson
Moderated by Alex Kraus, Vice President and East Coast Office Lead, Metis Strategy
12:45 – 1:00
Entrepreneur Spotlight: Mickey Boodaei, Transmit Security
Just weeks ago, Transmit Security raised $543 million in Series A funding and had a pre-money valuation of $2.2 billion, marking the largest Series A in the history of cybersecurity and one of the highest valuations for a bootstrapped company. In this fireside chat, Transmit Founder and CEO Mickey Boodaei the evolution of identity and authentication as the world moves toward a post-password future.
Mickey Boodaei, Founder and Chief Executive Officer, Transmit Security
Moderated by Peter High, President, Metis Strategy
1:00 – 1:20
Panel: How Fifth Third Bancorp Drives a Culture of Innovation
Fifth Third Bancorp is among the largest money managers in the Midwest, with $483 billion in assets under management as of June 30. Greg Carmichael, the company’s President, Chairman, and CEO, joined the company in 2003 as Chief Information Officer. In this discussion, he shares lessons learned on his path to the CEO role and chats with the company’s current CIO about the company’s investments in FinTech and its continued push to build world-class digital capabilities for its customers.
Greg Carmichael, Chief Executive Officer, Fifth Third Bank
Jude Schramm, Chief Information Officer, Fifth Third Bank
1:20 – 1:35
Entrepreneur Spotlight: Ed Jennings, Quickbase
The CEO of Quickbase describes how automation, low-code and no-code platforms are enabling organizational agility and the role of Citizen Automation in the future of work.
Ed Jennings, Chief Executive Officer, Quickbase
1:35 – 1:55
Panel: IT-Led Breakthroughs and the Digital Shift in Insurance
Technology leaders from two major insurance companies will discuss the role of IT in defining and enabling the future of work, IT-led digital breakthroughs, and the foundational changes that digital capabilities are bringing to the insurance industry.
Lisa Davis, SVP & Chief Information Officer, Blue Shield of California
Mike Shadler, SVP & Chief Information Officer, Pacific Life
Moderated by Chris Davis, Vice President & West Coast Lead, Metis Strategy
1:55 – 2:15
Panel: A People-Focused Approach to Transformation
Organizations increasingly acknowledge that creating an outstanding customer experience requires enabling an equally outstanding employee experience. In this session, technology leaders will discuss how digital efforts focused on people are driving engagement and enabling the development of new capabilities.
Mike Giresi, Chief Digital Technology Officer, Molex LLC
Tim Dickson, Chief Information Officer, Generac
Moderated by Steven Norton, Co-Head Executive Networks, Research, and Media, Metis Strategy
2:15 – 2:30
Entrepreneur Spotlight: Bernadette Nixon, Algolia
Algolia processes more than 1.5 trillion searches per year across more than 10,000 business customers. In this session, CEO Bernadette Nixon discusses what’s next for search and the growing role that APIs play in delivering seamless customer experiences.
Bernadette Nixon, Chief Executive Officer, Algolia
2:30 – 2:50
Panel: Combining AI and IoT to drive digital processes
Companies today rely on a rapidly evolving combination of artificial intelligence and Internet of Things applications as they modernize their operations for the digital age. In this discussion, technology leaders share their insights on successfully scaling and monitoring these digital processes to drive efficiency and product innovation.
Vagesh Dave, GVP & Chief Information Officer, McDermott International
Danielle Brown, SVP & Chief Information Officer, Whirlpool
Moderated by Michael Bertha, Managing Director and Central Office Lead, Metis Strategy
Click here for highlights from our last Digital Symposium, or view the panel discussions on YouTube.
As the business world adapts to an era of hybrid work, companies are learning how to effectively foster collaboration across remote and in-office teams. To operate effectively in this new reality, teams must develop creative ways to bring new thinking to life when colleagues are spread across the country, or even the world. Fostering that collaboration is critical to ensuring firms can act in a nimble fashion, able to seize new opportunities and stave off potential threats as they arise.
Metis Strategy frequently uses design sprints as a way to foster collaboration and idea generation among teams. Traditionally, design sprints occur in person. Several people get together in the same conference space to map customer journeys, illustrate design concepts, and paste Post-It notes around a large whiteboard to generate new ideas. In a remote or hybrid setting, however, not everyone is physically in the conference room, making it tougher to quickly sketch a concept or add an idea to the board.
The Metis Strategy team has found that effectively conducting a remote design sprint requires a different approach and a new set of skills to ensure the exercise runs smoothly. For a recent client engagement, our team built and facilitated a five-day, fully remote design sprint. We brought together employees from across the US to develop a tangible solution to a challenge facing the team. Each day was designed to get the team thinking creatively and engaging with the problem at hand, including understanding the challenge, deciding on long-term goals, and mapping user experience, and prototyping a solution that could be tested on a target audience. In this instance, virtual whiteboarding tools (we used Miro) became a critical for facilitating a successful sprint.
Below are a few takeaways from our experience that can help teams that are conducting their own remote or hybrid design sprints:
While a remote design sprint doesn’t deliver the same experience as an in-person session might, we found it to be an effective framework for collaboration and idea generation. As hybrid work takes hold at many companies, we expect sprint facilitators and their teams to be increasingly fluent with virtual whiteboarding tools as they manage collaboration across virtual and in-person settings.
Like so many companies over the past year and half, Ralph Lauren has had its resilience tested as a result of the Covid-19 pandemic. It had to shut down stores and offices, and had to advance efforts to better interact with customers and associates alike, safely.
Fortunately for the company, Janet Sherlock, who has been the chief information officer of Ralph Lauren for the past four years, initiated a number of initiatives that gave the company a leg up. Her purview is such that she has unusual influence for a CIO. She runs strategy and overall management of all of the technology including design conceptualization through to the point when products are distributed to either wholesale partners, the company’s stores, or directly to the company’s consumers. Her team is also responsible for store technology and the full ecosystem of in-product management and user experience. Additionally, Sherlock oversees all global digital platforms, marketing technology, data analytics, and data science. All of this is on top of global infrastructure, cybersecurity, IT risk, compliance, and privacy.
Among the fortuitous programs that were in place prior to the pandemic that aided the company’s transition during the pandemic was a hybrid flexible work arrangement called Flex Place. Upon this foundation, Sherlock’s team rapidly rolled out virtual appointment booking. Her team had already made significant progress on curbside pickup for customers. Completing its rollout ensured that the company could still do business through stores even if customers were unable or less willing to go in them.
“I think our biggest shift left efforts was probably in virtual stores,” said Sherlock. “We had been considering our approach to virtual stores before Covid hit but that was something that we pulled forward very quickly and aggressively. Our stores were such masterpieces, and the experience is so unique, we felt it was important to offer the world of Ralph Lauren to our customers, even if they couldn’t physically visit our stores.” Her team rolled out a rich virtual store experience and quickly integrated it with the company’s e-commerce platform so that customers could purchase certain products via hotspots directly from their virtual experience. “At this point, we have seven different virtual store experiences, and are continuing to build on the capabilities that we have in our virtual store environment,” noted Sherlock.
One of the thornier issues that Sherlock and team had to grapple with how to assist Ralph Lauren’s design and merchandising teams, each of whom relied and thrived on in-person collaboration. Sherlock’s team set up a design collaboration platform for them to use, and it proved to be a silver lining of the pandemic inasmuch as the teams developed new ways to work and collaborate. Now the design and merchandising teams anticipate an ability to continue to work both in person and virtually, adding flexibility to their work routines.
Another process that the company took for granted had to be done in person was the product approval process, which traditionally relied on in-person meetings to discuss milestones related to lines, styles, and fit approvals. It was long assumed that those involved had to be able to physically see and touch the material in order to make decisions. “We were able to leverage our 3D product development for the approval process, which also had the side benefit of streamlining the process,” said Sherlock. “We [also] had to create online experiences to replicate and replace our showroom visits, and support different virtual ordering processes for our wholesale partners.”
As Sherlock contemplated the future, she noted three strategic priorities: experiences, data, and automation. The overarching benefit of these foci should be greater nimbleness for the company. The experiences center around creating a variety of customer journeys and allowing customers to engage in the ways that best suit them rather than dictating how they shop and purchase products from Ralph Lauren. “Everything is interoperable between our online, our [marketing technology] and our in-store capabilities are blended together so we can create seamless experiences and we have some really cool ones planned for the future,” noted Sherlock.
Next, she believes data strategy will be a critical area of focus. “We’re being very deliberate about the overall data strategy for the core elements of data, things like our product data, our digital assets, our customer data, thinking strategically about where they’re stored, how they’re accessed and leveraged, how they’re maintained,” said Sherlock. “[This will impact not only] data analytics, but [it will allow Ralph Lauren] to serve up on a real-time basis things like personalization, real-time actions, real-time decision-making…Then, of course, it leads to our capabilities in advanced analytics and data science, which for us is a major area of emphasis and focus.” She refers to IT as the “connective tissue” of the enterprise relative to data, and that this is a discipline that will lead to better collaboration across the traditional silos of the company.
Sherlock believes that greater degrees of automation will improve the efficiency of all that IT delivers while further modernizing the practices of the company to better compete in the digital age. Sherlock and her team have implemented a variety of changes that have overturned decades of inherited wisdom about how business can be done, providing new benefits along the way. Necessity is the mother of invention, it is said, and many inventions have been created due to the necessities that the pandemic has driven.
In June, Sanjib Sahoo was named executive vice president and chief digital officer of Ingram Micro. He takes on this role with the company at an inflection point in its digital journey, as well as at a time of changing ownership for the company. Platinum Equity announced that it completed the acquisition of Ingram Micro from HNA Technology Co., Ltd, a part of HNA Group, on July 7, 2021 for a total enterprise value of $7.2 billion, in a transaction that includes $5.9 billion of equity value.
Ingram Micro’s CEO Alain Monie noted his excitement in Sahoo’s arrival at the company. “In his first few weeks in his new role as Chief Digital Officer, Sanjib has already proven to be an excellent fit to lead the continuation of Ingram Micro’s digital journey,” said Monie. “We are fortunate to gain a leader with a diverse and global background, tremendous technical depth, and a passion for creating an exceptional digital experience at this critical juncture in our digital evolution. He has been tasked with shaping and creating global competitive advantage and differentiation for our Technology Solutions and Cloud businesses through the development of innovative, world-class customer and user experiences.”
Monie also noted that Sahoo’s mandate includes leading the company’s current e-commerce platform IMOnline’s digital transformation to ensure the company’s customers can transact with Ingram Micro easily and intuitively.
Monie has tasked Sahoo with several initiatives related to building world-class user experience and platforms, including focusing on building changing consumption models and billing engines and leading modernization of the company’s legacy systems, which primarily serve the Technology Solutions business. “Data and machine learning is a critical component of where we are focused on building an insight-driven organization with the power of data,” said Sahoo. “Today, the vast majority of our revenues are derived from our Technology Solutions business and one of my big priorities is to focus on even better e-commerce execution through creating an integrated customer experience that is more self-service and enables solution-based selling through our platforms. There is a lot of work to lead digital transformation in a complex $49 billion annual revenue organization like Ingram Micro, but I am proud to be called on to continue the great journey that the company started few years ago.” In addition to platform innovation and e-commerce experience, Sahoo indicated that process automation will be an additional area of focus.
Sahoo joins Ingram Micro from XPO Logistics, where, for more than four years, he was the chief information officer of the Transport business. He was responsible for digital innovation, transformation, and overall technology operations including brokerage, intermodal, last mile, truckload, expedite, managed transport, and freight forwarding. Prior to his time at XPO Logistics, he was the chief information officer and chief technology officer of tradeMONSTER.
