2/12/18
By Peter High, published on Forbes
To say that Dow CIO Melanie Kalmar has a lot on her plate is an understatement. She has helped integrate two major acquisitions (Dow Corning and Dupont), is in the process of planning their divestiture, leads digital initiatives across the enterprise, runs Corporate Facilities, helped establish and runs Dow Services Business, all on top of running cybersecurity and infrastructure. Hers is a role that has all traditional aspects of IT, but also encompasses revenue-generating business and helps drive both customer and employee experience, as well. She covers this vast purview, the implications of the acquisitions and divestitures, the role that technologies like artificial intelligence and blockchain will play at Dow, among many other topics.
Peter High: Can you provide a brief overview of your purview at Dow?
Melanie Kalmer: I am Vice President and Chief Information Officer at Dow Chemical, and my role is a great example of how the responsibilities of a CIO continue to evolve. I have responsibilities for both global IT as well as for our Corporate Facilities and Dow Services Business. In terms of traditional IT accountability, I have responsibilities on a global scale including delivering the typical broad set of IT services. The fun part of that is the unique services that our business units need. I also have other corporate infrastructure responsibilities focused on our end-to-end processes and other stuff we do with our business units.
I also have accountability for cybersecurity and analytics, and I have a fun role in leading the digital transformation for the company. Even though I lead that, I want to be clear it is a collaborative effort that engages all facets of the company. That is how I like to operate, by engaging with the other executives and being extremely transparent about what we are doing. We hit the mark and we can deliver the expected business outcomes.
The other half is Corporate Facilities. What I focus on there is the offices and labs around the globe and creating modern capabilities. We want the spaces where people work to be vibrant and allow for greater collaboration. We are building new facilities and remodeling others to bring in more technology and create more opportunities for people to collide. The buzz word in the industry is collision space.
We just opened a new headquarters late last summer, and it is a beautiful building. There is a lot of buzz around the building about how it is driving more collaboration and a better flow of information. People can hear what others are talking about. We have open environments across most of our buildings.
As we embark on the huge set of activities that are coming out of our big M&A around Dow Corning and DuPont, we are working on what we call our rooftop strategy. This involves us deciding what facilities will go with which company, and how we get better space utilization in the buildings that we do occupy.
Under Corporate Facilities, we also manage real estate, which will help drive financial assessments on the real estate and sell assets. Much of this, be it land or buildings, we have acquired through many acquisitions over the years.
Finally, I run Dow Services Business [DSP]. The business was formed to support our joint ventures and our divestiture activities. The team that I lead manages contracts to provide services such as IT services, procurement services, and site services, to name a few examples. Those services are provided to our joint venture partners or to buyers of businesses that we divest.
The team focuses on ensuring we have those contracts in place but also acts as a liaison between those DSP customers and the groups within Dow that are providing the services. That has allowed us to leverage Dow’s capabilities on both a transitional basis and on a long-term basis and allows the joint ventures or the buyers of a divested business from Dow to focus on meeting their business objectives instead of having to figure out how to run the day-to-day business. We can provide those services for them while they are starting up.
Those are the three key areas I focus on. Additionally, I sit on the board for a reinsurance company [Dorinco Reinsurance Company] and participate in a lot of external activities such as around STEM. This is my role in a nutshell.
High: You spoke about the digital responsibilities that you have. Can you share how you define digital, as well as the ways in which you lead that from a transformation perspective?
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1/29/18
The integration of a major acquisition is the bane of the existence of many executives. Chief information officers have special challenges during such scenarios, since, after all, they must think about the people, processes, and technologies that must be integrated. This is an enormous amount of change to usher in.
When Steve Phillpott became CIO of $19 billion revenue developer, manufacturer and provider of data storage devices and solutions, Western Digital less than two and a half years ago, the company was nearly a third of its current size. With the acquisition of HGST in 2015 and the acquisition of SanDisk in 2016, there was no avoiding the fact that this would be a heavy lift for Phillpott and his colleagues. This was all announced in his first months on the job.
Phillpott noted that across the technology stacks of the three companies, in most areas, two-thirds of employees would be impacted, as the “winning” solution would be named. Phillpott recognized this as an opportunity to choose best-in-breed solutions across the technology portfolio. The mandate for change that any integration brings about would be a boon.
This would lead to the integration of more than 3,000 applications and would test the company’s change management practices, but Phillpott and his team have made enormous progress, as he notes herein.
Peter High: You are the Chief Information Officer of Western Digital. In its current generation, Western Digital is the combination of three multi-billion dollar organizations: Western Digital itself, the 2012 acquisition of HGST, and the acquisition in 2016 of SanDisk. I know you took an interesting approach to integrating these companies. Please explain.
Steve Phillpott: We integrated three large multi-billion dollar, Fortune 500 companies into one future Fortune 150-ish company. You are looking at integrating systems, integrating processes, and integrating technologies. As we started on this journey, this integration became a great opportunity to transform the company. By transforming the company I mean looking at those applications systems and processes that we have today, thinking where we want to be in a couple years, and starting to lay the foundation for that journey.
Consider ERP as an example. Across the three legacy sub-companies, we had three different ERP systems. Going forward, we could have picked any one of the three. In a typical acquisition where you have two companies; one large company, one small, it may default to the larger company’s ERP. Two like-sized companies integrating together, you may flip a coin, or you pick the best one and go forward. With three, it provides an interesting dynamic because, at a minimum, two-thirds of the company are going to have to go through change.
Our thinking was if two-thirds of the company are going to have to go through that massive amount of change, why should we not look at a newer, best-in-breed solution and have the entire company go through that change. What that does is it allows us to transform a foundational application that will support us as we grow to $20 billion, $25 billion, and beyond. It became a great opportunity to go through and rebuild processes and applications that we knew would not scale. We were able to revisit chart of accounts, revisit cost centers, and revisit the reconciliation process with an eye to the future and a focus on ensuring those processes would support us as we grow past a $20 billion company.
High: You have had to rationalize around 3,000 applications. Could you share how far you have come in that process, as well as what learnings you have had?
Phillpott: We had roughly 3,000-plus applications across the three major companies, and then we added a couple more acquisitions after that, which added more applications to the mix. I would say we are still early in the journey, but we have completed some major activities and 2017 was a very productive year for us. We focused on getting a lot of the collaboration and communication tools correct. Communication tools allow for the flattening of the organization, which is increasingly important as you are trying to go through these integration activities.
The speed at which companies can effectively collaborate is essential in helping move these integrations forward and trying to harmonize the processes in the system. The other interesting thing about focusing on those collaboration and communication tools is it also sets us up well for future M&As. Once we get those in as we move forward and have more acquisitions, we can bring them into the mix much quicker. We determined best-of-breed technologies across a variety of communication and collaboration tools.
Globally, we have everybody on the same email, the same file sharing around Box, the same intranet, Jive, WebEx, Jabber – those core collaboration and communication tools. If you look beyond those initial communication and collaboration activities, we have started to migrate many of the legacy applications. Now we are on a global Human Capital Management system which we consolidated with our CRM. We consolidated on a global ServiceNow instance which was interesting because that is another area where we try to get everybody’s information into one area, but it is diverse in terms of what activity we need to help the end users with.
1/22/18
By Peter High, Published on Forbes
Diane Schwarz has the killer combination of skills and experiences to be a chief information officer. She was an engineer as an undergraduate, and therefore learned important technical skills. She has an MBA from the University of Chicago and learned key business disciplines. She was a consultant, gaining experience solving problems across many different companies who were her clients. By the time she joined IT departments, she had depth and breadth to her experiences, and quickly rose to become a CIO.
For nearly five years, Schwarz has been the Enterprise CIO of Textron, the $14 billion revenue multi-industry conglomerate in aircraft, defense, industrial and finance businesses. With such diverse businesses in the company’s portfolio, it can be tricky to get the balance right between standardizing processes and technologies, and allowing the business units of the company to have autonomy. She has simplified things by operating with four key strategies that she describes in more depth in this interview:
Peter High: You are the enterprise level Chief Information Officer of Textron, but I know there is also IT leadership within the business units themselves. Could you talk about the structure of IT at an organization as complex as yours?
Diane Schwarz: We have a CIO in each of our business units and major product lines, and they have their own IT organizations that report to them. Those CIOs have dual reporting to the business unit leadership as well as to me. The business units do what I call the fun stuff. They support the stakeholder applications, whether it is ERP or CRM or PLM tools.
With that much disparity in the organization, we communicate often and at great lengths to make sure that we know what is going on in our different locations. I have only 50 percent of the staff in the United States. I have many folks in India, who roll up independently to each of their business units, but who also happen to sit in a common office building. It may seem complex to an outsider, but we know how our puzzle pieces fit together.
High: In an organization as diverse as yours, how do you think about what should be common versus what should be unique as it applies to that diverse range of businesses?
Schwarz: That is a question our CEO answers. He has said our business units are empowered to make decisions on what is going to be best for them to meet their strategic objectives. Of course, profitability is part of that. Let’s say a business unit wanted to host its own email system. We do not have any rules that say they cannot, but it is going to cost more for them.
Profitability objectives help keep people in line without deviating too much from the standards. This enables employees to be able to interact across our locations. Our CEO also recognizes that when it comes to, for instance, ERP systems, what serves a business unit in aerospace is different than what serves somebody in automotive. If you make people share too much, you sub-optimize what is going to support their business. We look at what is going to best serve their business needs.
High: Could you talk about your strategy? What has risen to the top of your strategic plan?
1/2/18
Clay Johnson has worked at a number of iconic brands, from FedEx to Boeing to General Electric. Roughly a year ago, he joined yet another icon in Walmart. In so doing, he joined a company with 2.3 million associates, 5,000 stores in the U.S. alone, and a complex mix of technology. His priorities in the early days were to meet as many people as possible, to learn the business, and to understand the projects that were ongoing.
He has begun to enact a cultural change within the IT department, and he indicates that the four steps he has followed have been to be transparent, to foster open debates, to push everyone to speak up, and to incorporate a fail-fast approach to work.
Now that he has a year under his belt, he sees his big priorities for the year ahead as developing a product model for IT to facilitate end-to-end ownership of different product areas created, as well as process automation, facilitated at least in part through artificial intelligence. He discusses all of the above and more in this far-ranging interview.
Peter High: Can you please describe your purview as Walmart’s Chief Information Officer and Executive Vice President of Global Business Services?
Clay Johnson: When I joined earlier this year, we consolidated the Internal Technology and the Shared Services teams. Technology encompasses anything that runs internally for the company, from server security and corporate systems to machine learning [ML], analytics, and artificial intelligence [AI]. We split out e-commerce and customer-facing staff to Jeremy King, who is our CTO. Everything else that runs inside the company falls under me. A lot of that is supplier facing rather than customer facing.
Combining these two teams has been incredibly powerful because it enables us to drive end-to-end ownership and use technology all the way through a process. I predict you are going to see a trend of more companies doing this.
High: I know part of the intention was to have a unified view of the associate experience. Could you describe how that is enhanced through digital technologies?
Johnson: The key is a relentless focus on the customer, and my customers are the internal associates of the company. Walmart has over two million associates, which is a huge number. At that scale, any time you can help productivity numbers or improve interactions with the different tools and services that we have, that will result in a massive productivity improvement.
If you look back ten years ago, business technology was better than consumer technology. However, that has now flipped. A lot of the technology that employees use in their personal lives is better than what they have at work. People now expect that when they come to work, the technology will be intuitive like social media and smartphones. They want everything on mobile and at the tip of their fingers. The goal of the Internal Technology and Shared Services team is to provide everything associates need when and how they need it, from tools to analytics.
High: Given this mandate, how much have you had to change in terms of the skill mix of your team? To what degree are you adding new employees, retraining existing employees, or creatively using external parties?
Linda Jojo joined United Airlines as Executive Vice President and Chief Information Officer in November 2014. Between then and mid-2017, a primary area of focus was improving the company’s mobile tools and apps for customers and employees. As the value she contributed increasingly was customer-facing, the justification of expanding her responsibilities was made. In the middle of 2017, she was promoted to EVP of Technology and Chief Digital Officer.
In addition to her responsibility for United’s technology platforms and analytics, Jojo took over strategy, development and deployment of United’s e-commerce, mobile app and commercial web platforms. With these expanded responsibilities, she and her team have profoundly impacted both top and bottom line of the airline.
Jojo has also joined the small but growing club of CIOs who have joined public boards, having joined the board of $31 billion revenue utility services holding company Exelon in September of 2015. She is a member of the Compensation & Leadership Development Committee and Finance & Risk Committee. She covers all of the above and more in this interview.
Peter High: Since June of 2017, you have been the Executive Vice President of Technology and Chief Digital Officer of United Airlines. This follows your more than two and a half years as the Executive Vice President and Chief Information Officer of United. How do these new titles change your purview?
Linda Jojo: I am responsible for technology as I had been as CIO. Additionally, I am also responsible for our digital strategy and ownership of our digital channels such as our website, our apps, and our digital distribution.
High: What are some aspects of your digital strategy?
Jojo: As in every industry, digital is pervasive throughout the organization and throughout the airline. A big component is arming and empowering our own employees with real-time information about the customer so that we can serve them better. It is about harnessing the massive amount of operational data we have to improve the reliability of our airline, to get more involved and more predictive in our maintenance activities, and to get more sophisticated in our revenue management process.
12/4/17
Fletcher Previn is the youngest chief information officer in the history of IBM. He rose to the role in May after having spent 11 years at the company. He sees his role as helping to make his colleagues productive, to attract top talent, to be the digital front-end of the cultural transformation that IBM is ushering in, and to do all of this in a secure manner.
It is a fifth area that may be the source of highest value, however. Previn notes that his department has a role to play in ushering in the cognitive enterprise. This dovetails with the company’s focus on artificial intelligence through its Watson unit, but Previn notes that his team is working on artificial intelligence and machine learning initiatives independently, as well.
Peter High: You have been the Chief Information Officer of IBM since May of this year. How did you find out that you were going to be selected as the CIO of IBM? Likewise, what sort of preparations did you go through before taking on the role?
Fletcher Previn: I had worked in the IT Department at IBM for some time and had supported two previous CIOs in various capacities. One was a kind of Chief of Staff role, and the other was an executive capacity running the workplace and service and back-office functions. I had a pretty good sense of what the job would entail. That allowed me to hit the ground running and have less lead time in terms of getting up to speed and being able to execute our strategy.
High: Once you took the role, to what extent was it a case of continuing with the strategy versus refashioning it in various ways?
11/20/17
Paula Tolliver joined Intel a little more than a year ago as chief information officer. She had spent more than two decades at the Dow Chemical Company. She had been CIO there, as well, but she also ran procurement for a time, and had profit and loss accountability for Dow’s $1 billion services business. Therefore, she came to Intel with an orientation toward driving revenue growth from her post.
Tolliver immediately got to work doing just that. She has helped lead a major push toward deepening the company’s investment in analytics and artificial intelligence, in addition to other new technologies, and has helped drive $350 million in revenue growth in the sales and marketing channels alone, as she notes herein.
Tolliver has also improved IT’s orientation toward being “customer zero” for Intel’s own technologies. As such, she has woven her team into the product development process, and served as an important proxy for CIO and other IT executive customers of the company.
Peter High: You recently celebrated your first year anniversary with Intel. Prior to coming to Intel, you spent a couple of decades at Dow Chemical. What drew you to the CIO role at Intel?
Paula Tolliver: I have been in the profession for close to 30 years. My move to Intel was the result of my beginning to reflect on my career and wanting to be more deeply involved in this exciting time for IT. As I looked around and started to understand the potential of new technologies and how quickly they are advancing, I wanted to be a part of that in a more meaningful way. I saw joining the technology industry as a way to jump in with both feet. Fortunately, for me, Intel was looking for a CIO. What drew me to Intel was that they are a substantial contributor to the advancements happening in the IT industry. The technology that Intel has developed over its long history have driven many significant technology advancements, opened up many of possibilities that we see today, and powered the digital transformation. The privilege and honor of joining the Intel team and being a part of the ecosystem of technology was too exciting for me to pass up. I jumped on board and have enjoyed every minute.
High: Intel has been going through a transformation. Can you describe the changes and the role that IT plays?
11/13/17
The Chief Information Officer of $100 billion revenue Express Scripts Neal Sample has had unusual breadth and depth of experience for someone who is still in his mid-40s. He has a PhD in Computer Science from Stanford, which allows him to dig into the weeds of the technology his team develops with the best of them. He also spent time professionally as a consultant, giving him an orientation and a toolkit to solve a diverse array of problems. He spent time with legendary digital native companies like Yahoo! (where he was Chief Architect) and eBay (where he was CTO of X.Commerce, eBay’s venture to bring together a comprehensive set of commerce products and capabilities to help merchants and businesses compete in the world of social, local, mobile, and digital-driven commerce). At American Express, he grew from CIO of the Enterprise Growth unit to become president of the unit.
Sample took his current role for the St. Louis-based pharmacy benefits management behemoth nearly two years ago. As he notes in this interview, information is the coin of the realm for Express Scripts, and he has helped tune his team to drive better insights through better gathering and synthesis of information. His team helps lead the innovation agenda for the company, and he has grown leaps and bounds.
Peter High: In the 20 or so months that you have been the CIO of Express Scripts, you have been in the throes of a transformation. What was the state of IT and technology when you joined Express Scripts and what changes have you made?
Neal Sample: For 20 years, Express Scripts had primarily grown inorganically through acquisitions. The enterprise’s growth pattern was fairly consistent, they would purchase another pharmacy benefit management company or a related business, integrate it, capture the synergies from the integration, and then leverage those synergies to acquire the next business. From a technology perspective, this meant that they often did not end up with the systems they would have designed or chosen if they had started with a blank sheet of paper. It was not one plus one equals three, it was more like one plus one equals one. There was a lot of technology debt. There were many systems that would have been upgraded if the focus had been on infrastructure, instead of integrating the next company. There were also a plethora of systems. We had 31 development languages. Any technology stack you could imagine was present. Midrange, mainframe, on premise cloud, off premise cloud, it was all there. We had the opportunity to do some clean up, to enhance our reliability, and to become more agile. From a business process perspective, development had been primarily waterfall, which meant that not only were the cycle times long and fairly expensive, but the processes were rigid in their ability to respond to the market.
We had our work cut out for us. We had to decide to start with people, process, or technology. We picked all three. We began a tech debt retirement program and a move from waterfall to agile. We also focused on attracting and hiring in-house talent. Years of outsourcing had left us a little light for the transformation. In summary, I came into an environment that was target rich in people, processes, and technology, and began chipping away.
High: Part of your purview as CIO is innovation. As you have taken care of the efficiency part of the equation, trying to get to that one plus one equals three equation, what innovative ideas have you pursued?
11/06/17
Yoshua Bengio is one of the foremost thinkers in a field within artificial intelligence known as artifical neural networks and deep learning. Although significant progress has been made in recent years due to (among other factors) the combination of the proliferation of data, the decreasing cost of compute, and the tremendous amount of money and talent now devoted to artificial intelligence, Bengio chose this as a field of study during the 1980s, in the throes of what some referred to as the AI winter, seeing through a period when money and enthusiasm for artificial intelligence had dried up.
Bengio is the co-author (with Ian Goodfellow and Aaron Courville) of Deep Learning, a book that Elon Musk referred to as “the definitive textbook on deep learning.” On top of his growing influence in this field, he has also been enormously influential in shaping Montreal to become a hotbed for artificial intelligence. Bengio co-founded Element AI in 2016, which has a stated mission to “turn the world’s leading AI research into transformative business applications.” Element AI aims to foster partnership between the private sector and academia to help push the expansion of AI.
Bengio believes Montreal has emerged as a powerhouse due to the combination of great universities, great companies (including a number of Silicon Valley companies who have established offices in Montreal), and Canada’s ethos of cooperation among elite minds. We cover all of the above and more herein.
Peter High: Where does the field of deep neural networks currently stand in your estimation?
Yoshua Bengio: We have made amazing progress, but we are far from human level intelligence with computers. Most of the progress has been with supervised learning, which means machines are taught by essentially imitating humans. With supervised learning, humans provide the high-level concepts that the computer learns, which can be tedious and limits the ability of computers to discover things by themselves. Unsupervised learning, or what we call reinforcement learning, is when the learner is not merely passively observing the world, or how humans do things, but interacts with the environment and gets feedback. Humans are good at this. Combining unsupervised deep learning and reinforcement learning is one of the things that I am working on.
High: What steps are needed to reach the more fully realized version of unsupervised learning?
10/30/17
Andrew Moore’s career path at Carnegie Mellon has become emblematic of the way the University fosters its star talent. He became a tenured professor at Carnegie Mellon in 2000. In 2006, Moore joined Google, where he was responsible for building a new engineering office. As a vice president of engineering, Andrew was responsible for Google Shopping, the company’s retail segment. Moore returned to Carnegie Mellon in 2014 as the Dean of the Computer Science department. In that role and given his experience, Moore is among the most influential people in the fields of computer science and artificial intelligence.
In the past, Moore has described the poaching problem that the Computer Science department has, given its stable of extraordinary talent in fields such as artificial intelligence, machine learning, robotics, and others that are high in demand. Of course, he recognizes himself in those professors and students who would choose to follow their passions into lucrative positions in the private sector. The department allows professors to leave and come back in many cases, and is hiring at higher rates in anticipation of this trend continuing.
In this interview, Moore offers insights into the evolving field of artificial intelligence, what is likely to be the factors to determine the companies who will win or lose in this space, as well as insights into what makes Carnegie Mellon specifically and Pittsburgh more generally a hot test bed for cutting edge technology.
Peter High: Andrew, you are the Dean of the School of Computer Science at Carnegie Mellon University. Please describe your purview.
Andrew Moore: Carnegie Mellon’s School of Computer Science has a couple of hundred strong faculty members who are working on every aspect of computer technology. We also have a few thousand amazing students. My role as Dean is to make sure the whole organization gets to move forward. I see my role as helping to clear the way for these geniuses to get to do what they want to do.
High: You have said that being at CMU is like being at Hogwarts Academy. That when you walk around the School of Computer Science, the College of Engineering, and the university at large, you see a great number of smart people working on a variety of things that will change the technology landscape, and ultimately our lives. What was the origin of Carnegie Mellon’s influence?
Moore: It all comes down to two visionaries, Allen Newell and Herbert Simon. They were two of the four people who, in 1956, took part in the Dartmouth Artificial Intelligence Conference, where they discussed what might be possible with computers in the future. These two gentlemen were in the business school at Carnegie Tech, which later became Carnegie Mellon University. There was, of course, not a computer science school in the 1960s. Newell and Simon used their passion and extreme intellect to speculate and bring together a team of people who looked at, not what computers would do in the next five to 10 years, but what it would mean to live in a world where there are thinking machines. They inspired so many other thinkers through that period that it snowballed over the decades. Today, we have 250 faculty members in the School of Computer Science. They work on everything from the lowest level details of how photons move and how you count them up, to the highest level details of what it means to have an emotional relationship with a talking machine. It was Newell’s and Simon’s initial interest that sparked this and shaped our computer science department.
On the commercial side, through our digital channels, we continue to advance our product suite to allow our commercial customers to have access to the technology portals that house all of the capabilities and resources of the bank that they use. This includes things like wires, accounts receivable transactions, etc. Many of our interactions with our commercial customers also occur through our digital channels. This will continue to evolve as our customers work to become more efficient, and we develop new ways to help them achieve that. This transformation has been underway for some time, but it has accelerated in the last two or three years.
