Generative artificial intelligence (GenAI) tools such as Azure OpenAI have been drawing attention in recent months, and there is widespread consensus that these technologies can significantly transform the retail industry. The most well-known GenAI application is ChatGPT, an AI agent that can generate a human-like conversational response to a query. Other well-known GenAI applications can generate narrative text to summarize or query large volumes of data, generate images and video in response to descriptive phrases, or even generate complex code based on natural language questions.

GenAI technologies offer significant potential benefits for retail organizations, including speedy price adjustments, customized behavior-based incentives, and personalized recommendations in response to searches and customer preferences. These technologies can create new written, visual, and auditory content based on natural language prompts or existing data. Their advanced analytic capabilities can help determine better locations for new stores or where to target new investments. Generative AI chatbots can provide faster, more relevant customer assistance leading to increased customer satisfaction and in some cases, reduced costs and customer churn. To gain a deeper understanding of how retail organizations can benefit from Generative AI applications, we spoke with James Caton, Practice Leader, Data and Artificial Intelligence, at Microsoft, and Girish Phadke, Technology Head, Microsoft and Cloud Platforms, at Tata Consultancy Services (TCS). James and Girish discussed three ways Generative AI is transforming retail: speeding innovation, creating a better customer experience, and driving growth.

How can Generative AI speed innovation in retail?

James Caton: We’re already seeing a lot of data-driven innovation in the industry. Microsoft Azure OpenAI Service, which provides access to OpenAI’s large language models, allows more probing and deep questioning of data. A frontline worker could have the ability to “chat with their data,” to conversationally query inventory or shipping options for example, see the response in a chart, and ask for trend analysis and deeper insights.

It essentially gives you an assistant or a Copilot to help do your job. Imagine having several assistants that are parsing the data, querying the data, and bringing data reports and visual graphs back to you. And you can send the copilot back and say, “please look here,” and “I want more information there.” As a retail sales manager, OpenAI will allow you to develop more innovative solutions, more tailored strategies, and more personalized experiences.

How does Generative AI’s conversational flow enable a more compelling customer experience?

Girish Phadke: Existing call center tools can be conversational, and they do have access to 360-degree customer views, but there is a limit in terms of how far back they can go and what kind of data they can process to answer the customer’s query.

The new Generative AI models can go deeper into historical information, summarize it, and then present it in a human-like conversation. These models can pull data from multiple interactions and sources, from a huge amount of information, and create a response that is the best fit to answer a particular customer’s question. Essentially, tailoring the answer not only based on a massive knowledge base of data, but also on the individual customer’s preferences.

Can you share an example of how one of your customers has benefited from using OpenAI to process and analyze vast amounts of information?

Caton: CarMax reviews millions of vehicles. The challenge for new buyers was there were too many reviews, and they could not get a good sense for why people liked or disliked a certain vehicle. CarMax used the Azure OpenAI Service to analyze millions of reviews and present a summary. If a customer was looking at a certain make and model, the Azure OpenAI service summarized the reviews and presented the top three reasons people liked it and the top three reasons they disliked it. The technology summarized millions of comments, so that customers didn’t have to, thus improving the customer experience and satisfaction.

Are there steps that retailers can take to get ready for OpenAI and similar tools?

Caton: If a retailer wants to take advantage of these capabilities, the first thing they need to do is move their data to the Microsoft Cloud. Then, partners like TCS can help them develop their preferred use case, such as applying Generative AI to inventory or sales data or helping develop more tailored marketing campaigns. TCS knows the industry as well as most retailers. They understand the technology, how to manage and migrate data, and how to optimize to make best use of the new capabilities.

Phadke: We understand this is a new technology; retailers are likely to be cautious. They can start by augmenting existing capabilities, such as with more comprehensive Azure ChatGPT, and adjust the governance models as they learn more about their data and processes. As confidence grows, they can begin to automate the larger deployment mechanism.

How long does it typically take for an organization to see a return on investment from Generative AI?

Phadke: With the right strategy and right set of use cases, a system can start generating a positive ROI very quickly. TCS offers a six-week discovery assessment to help with ideation and strategy development. Within 12 to 16 weeks of adopting Azure OpenAI Service, an organization can have a more scaled-out implementation.

Do retail organizations have to embrace Generative AI technologies right now if they want to be able to compete?

Phadke: I think if some retailers choose to ignore this technology, they risk falling behind. Earlier adopters might get a competitive advantage. This technology is disruptive in nature and will have a significant impact on many industries, including retail.

Caton: OpenAI is the fastest application to hit 100 million users —faster than Facebook, Instagram, or WhatsApp. The risk for slow adopters is that their competitors are adopting it and might gain a competitive advantage. It is being adopted very widely, very quickly.

Learn how to master your cloud transformation journey with TCS and Microsoft Cloud.

TCS

Girish Phadke, Technology Head, Microsoft and Cloud Platforms, TCS
Girish Phadke leads Edge to Cloud Solutions, AI, and Innovation focus areas within the TCS Microsoft Business Unit. He provides advisory to customers on next generation architectures and business solutions. He tracks and incubates new technologies through TCS Microsoft Business Unit Innovation hubs across the globe. Girish is based out of Mumbai, India, and in his free time loves watching science fiction movies.
https://www.linkedin.com/in/ girish-phadke-ab25034/

Microsoft

James Caton, Practice Leader, Data & Artificial Intelligence, Microsoft James Caton serves as an AI Practice Leader at Microsoft, helping global system integrators build sustainable Azure Artificial Intelligence businesses. He has held technical and commercial leadership positions at software companies SAS and IBM, as well as with Larsen & Toubro Construction where he led their India Smart Cities business. James lives in Ave Maria, Florida with his wife and three daughters. https://www.linkedin.com/in/jmcaton/

Artificial Intelligence, Retail Industry

Despite all the attention generative AI is getting right now, most organizations have done little with artificial intelligence. That is a big mistake, says Tom Davenport, senior advisor to Deloitte’s Analytics practice. Enterprises, especially industry leaders, need to be all-in on AI if they are to remain competitive.

To truly benefit from AI investments, organizations must rethink how humans and machines interact in work environments, Davenport says, starting with applications that change how employees do their jobs and how they interact with customers. AI should help drive every business decision, and every product or service offering.

That message is at the heart of Davenport’s new book, All in on AI: How Smart Companies Win Big with Artificial Intelligence, co-written with Deloitte Consulting principal Nitin Mittal.

“It doesn’t provide a lot of value to just tinker with AI — to do an experiment here and there,” Davenport says. “We can do AI pretty easily on a small scale. But integrating it into how you do your work means embedding it into your existing technology architecture.”

Instead, organizations need to incorporate AI into business processes and workflows. They need to upskill staff to work with AI. And they need to ensure the AI technology can scale. They also need to do these things over time, to ensure the world doesn’t change in a way that makes the effort counter-productive.

“There are lots of benefits to be had from aggressively adopting [AI], and using it to change your strategy, your business model, and your key business processes. It’s really urging companies to do more with AI than the toes-in-the-water approach that most have taken,” Davenport stresses.

Learning from those who reap huge benefits from AI investments

In the book, Davenport and Mittal identify 30 organizations that have gone ‘all-in’ on AI and benefitted enormously from this strategy.

“The most impressive example is Ping in China,” Davenport explains. “Most people don’t know much about it, although it’s the 16th largest company in terms of revenue in the world. It is now the largest private sector company in China. Ping was founded as an insurance company, but they now have five ‘ecosystems,’ or business units. In addition to insurance, they have added banking, healthcare, Smart City [a smart cities business], and an automobile services business.”

Ping has grown at an unbelievable rate, Davenport says. The firm created this ecosystem approach to enable them to partner with other organizations and get customer data from those relationships. They use that data to create AI models that do a good job of predicting or categorizing behaviors. They then grow each business and get more data, he says.

“My favorite example is their healthcare business, which created an offering called Good Doctor,” Davenport continues. “During the pandemic, we were impressed in the United States when people could talk to their doctor over Zoom, get a prescription or whatever. But this goes so far beyond that.”

Good Doctor is an AI-based system for triage, diagnosis, and then treatment recommendations, Davenport explains. An actual doctor makes the final diagnosis and recommends treatment for a patient, but the physician gets recommendations from the Good Doctor system.

“For me, the most astounding thing is that it is used by nearly 400 million people in China, more than the population of the United States. They don’t have enough doctors in China, so it has made a huge difference to the state of healthcare,” Davenport says.

Other AI leaders transforming their markets

Another example profiled in the book is Shell Oil Co., which has embraced AI for many of its business units, and has used AI to re-engineer a number of processes. The most dramatic example is around inspection of Shell’s large plants and pipelines.

“It used to literally take up to six years to inspect every aspect of their plants with human inspectors,” Davenport says. “Shell now shoots for six days, using drones and AI-based image analysis systems. They have achieved dramatic reductions in the time to do these inspections, and there is a potential safety benefit here as well. Shell has also trained over 5,000 engineers to be citizen data scientists, in a sense. They are able to interpret this inspection data without having a professional data science background.”

A third example is Kroger, which is one of the largest grocery retailers in the US. Kroger has a wholly-owned data science subsidiary called 84 Point 51 Degrees, based in Cincinnati. The name comes from the longitude of Cincinnati.

“The subsidiary is really quite impressive in terms of the data science work that they do for Kroger related to consumer products, as well as the companies that sell their products in Kroger,” Davenport explains. “For example, they run a huge model that predicts the sales in every stock unit, in every store, in their entire collection of stores, every night.”

Kroger also has the largest grocery loyalty program in the country. The company uses data from that program to predict what product offerings and promotions will convince members to show up at a local store more often, and to buy more.

“They are using the loyalty program to recommend new products with a high level of nutrition, to encourage customers to shop in the healthy food space,” Davenport says. “They also sell some of their data insights to consumer products partners. I think they’re well ahead of any other grocery retailer in that regard.”

AI’s value for large legacy organizations

The primary focus of Davenport and Mittal’s book is on legacy organizations that want to truly transform with AI.

“It isn’t about the digital natives that have a much easier time of it, since everybody [in those organizations] already believes in AI and digital transformation,” Davenport notes. “Still, a lot of companies say they’re doing it. But they have very few deployments of AI to show. They haven’t integrated it into their day-to-day work, and hence, don’t get any real economic value.”

Davenport acknowledges that many companies may feel reluctant to make a large investment at this relatively early stage of ‘modern’ AI. But the book is intended to demonstrate how organizations committed to AI use are reaping significant benefits, and in some cases, transforming their markets.

Toward that end, these leading organizations are both broad and deep in terms of AI adoption, Davenport says. They have several use cases or applications in production. They use a variety of technologies, including machine learning. Many also use robotic process automation and linguistics-based computational chatbots.

“The time to stand on the sidelines is over,” Davenport stresses. “In a way, we were trying to scare readers and say, ‘It’s going to be hard to catch up if somebody else in your industry is doing this, and you’re not.’”

Most importantly, AI is an area where it will be difficult to be a fast-follower, because it requires a lot of data and a lot of skills that are not widely available, Davenport explains. Organizations should start investing in AI now, and there are ways to do this fairly easily and inexpensively.

“Many vendors are incorporating AI capabilities into their ERP systems and CRM systems, so you could start there,” Davenport says. “But if you want any sort of competitive advantage from AI, you probably have to develop some of these capabilities yourself. That means developing the skills and technology capabilities in order to produce some of your own use cases.”

Artificial Intelligence

Companies across nearly every vertical are finding a transformational lifeline in industry clouds. Swiss biopharmaceutical Idorsia is one such company, having embraced a partnership with industry cloud provider Veeva to survive.

In June 2017, Idorsia had a lot on its plate, namely a new company to stand up, with 650 scientists and employees, a robust discovery pipeline, early-stage clinical assets, and plans to launch commercial products within five years.

More challenging, its spin-off from Actelion following Johnson & Johnson’s acquisition meant there were no systems or technology platforms. Idorsia needed a partner to help it move through the arduous scientific process and multiple-nation regulatory processes that accompany drug launches.

“We started with a blank page. I actually had no other choice than going for the cloud at that time,” says Joseph Bejjani, CIO of Idorsia, who selected Veeva, an industry cloud for life sciences. “Veeva covers a large scope of our environment from clinical development to quality regulatory affairs from a user experience in one interface.”

That’s just one of the benefits of an industry cloud, he says. Veeva’s life sciences cloud, for example, not only handles Idorsia’s regulatory, sustainability, and commercial processes but also provides predefined FDA formatting.

Perhaps most important, Idorsia taps into Veeva’s evolving knowledge base, which encompasses data from other customers such as major pharmaceuticals giants Merck, Bayer, and Kronos, the CIO says. And that is a major gain for a startup — getting the know-how and experience of Veeva’s entire customer base, he says.

“Compliance is key for us, but industry knowledge is extremely important for a relatively small company. We get the collective knowledge of our industry,” he says, noting that Idorsia also relies on Veeva to navigate regulatory issues that vary in each nation. “Veeva cloud solution provides us with industry best practices.”

Going vertical

Hundreds of “industry clouds” tailored to specific verticals have been developed by a range of vendors, from hypervisors that sponsor vertical solutions to consulting firms that have built custom clouds for select clients.

These clouds are also often distinguished by the underlying partnership that resulted in the solution or the underlying platform on which the cloud runs. Veeva, for example, runs on Salesforce CRM.

Idorsia’s Bejjani says there are two components to the biopharmaceutical’s Veeva cloud: one for R&D and another for commercial requirements. Idorsia chose Veeva when it was in the last phase of a clinical study of its first commercial insomnia drug. The company had only nine months to complete the process before submitting its application to the FDA.

Joseph Bejjani, CIO, Idorsia

Idorsia

Veeva’s solution captures all the management and technology checkpoints — the structure, output, and terminology, Bejjani says, adding that it then “integrates with another fundamental tool in our clinical operations. This file captures all the data that we use to submit our procedure. It’s pre-defined with standard chapters. When you submit to the FDA, you must have clearly defined chapters.”

Idorsia could build its own Salesforce-based solution but the value Veeva adds is immeasurable, its CIO notes. “It’s better to go with an industry cloud because you inherit what research work the industry cloud provider has,” he says.

Idorsia currently has two products launched commercially. The insomnia solution launched in the US, Italy, and Germany. Last year, the company launched another product in Japan and currently has 10 products in clinical development, roughly half of which are in the late stages.

“The configuration we have today has been extremely beneficial because I do have the vendor’s attention. I have a unique setup. I have a large scope of functionality and systems,” Bejjani says, noting his strategy and speed, simplicity and sustainability needs led him to choose a cloud platform based solution from a preferred vendor with strong industry knowledge and presence.”

Making sense of a complex market

Given the variety of approaches and solutions, the industry cloud market has grown vast and complex. Consulting firms such as KPMG and Accenture agree there is no clear definition of what an industry cloud is, and its components, services, and technology stacks are still evolving.

“It’s a term that is still forming, but we would all agree on now is that it’s using cloud technology to solve problems specific to an industry sector,” says Marcus Murph, KPMG’s US leader for cloud.

Murph points out, for example, that Microsoft has a financial solutions industry cloud yet many enterprises use IBM for financial services in the cloud and still other financial companies have developed a high-end solution in conjunction with NASDAQ that includes analytics and machine learning models.

Much of the focus of industry clouds to date has been on foundational aspects of doing business in the cloud, such as which workloads to migrate to the cloud, whether to lift and shift those workloads directly to the cloud, or redesign them from scratch into cloud-native applications. But as Idorsia’s use of Veeva shows, some industry clouds also offer industry-based tooling, such as “solutions that address regulatory challenges and controls in different sectors, as well as data models specific to different vertical sectors,” Murph says.

Due to their nature, industry clouds likely will remain collaborative affairs. “The industry-based cloud has to be an ecosystem that stitches different technologies together and solves different problems,” Murph says. “I don’t know that you’ll ever see one company dominate an industry cloud on its own.”

CIOs must think strategically before selecting an existing industry cloud solution or building a custom industry cloud with a partner, says Ashley Skyrme, global cloud first strategy and consulting lead at Accenture.

This involves “rewiring their value chain” of products, solutions, and services, namely rethinking their tech stack more strategically, orchestrating multiple data assets and unlocking data from many sources.         

Skyrme pointed to Volkswagen as a great example of an enterprise that built an automotive cloud platform by opening up and collaborating across different industries to bring its supply chain together.

“It’s not a pre-formulated kit,” Skyrme says about defining the industry cloud. “We think of it as much more exhaustive across the cloud continuum. It’s an evolving ecosystem of standardized, reusable, and interoperable digital assets. That’s the holy grail of the industry cloud. Driving differentiation and growth … new products, new platforms, and new experiences.”

As for Idorsia, embracing an early but established life sciences industry cloud has no doubt enabled the startup to turn its R&D into a profitable business — which can be more challenging than the science itself. And Bejjani is one CIO who is glad he didn’t try to tackle it alone.

“We could do it, but it would be very time consuming and expensive,” he says. “Veeva already created the vertical for the pharmaceutical industry and the workflows and terminologies of the industry are pre-configured and embedded in their product.”

For enterprises like Idorsia whose tech stacks aren’t their key differentiator, the value proposition of industry clouds is compelling.

Cloud Computing

Black women in technology are burnt out and impatient with an IT industry slow to change.

More than a dozen Black women working in technology roles, across a wide range of industries and at varying levels of seniority, spoke to CIO.com on the back of a British Computer Society (BCS) and Coding Black Females (CBF) report—The Experiences of Black Women in the IT Industry, fielded in the summer of 2021 but launched last October—that found just 0.7% of Black women in the UK work in the IT industry, compared to 1.8% across the UK’s entire workforce, and 3.2% of Black people in total work in IT.

The UK study also revealed that women of all backgrounds and ethnicities make up around 22% (approximately 424,000), compared to 48% of the entire UK workforce, with Black women in particular facing a wide range of obstacles, including discrimination and being accused by colleagues or superiors of being merely ‘diversity hires.’ Some professionals said they had heard this phrase used directly about them, via a third-party, or through peers when sharing their own experiences.

“You get that,” says a business relationship manager working in the UK civil service, adding that she often heard this, most frequently when working at the Metropolitan Police. “If you’re promoted to a G6 or G7 band [editor’s note: the grading system used to ascertain job seniority and responsibilities in the UK’s civil service], it’s to make up the numbers. You haven’t got what it takes. I’ve heard that directly.”

Other Black women, in roles from junior developer and software engineer, to project management, digital delivery, product design, and current CIOs and CTOs, told CIO.com they felt they have to work harder than colleagues to get recognition, are more closely scrutinized by senior leaders, and yet often unrewarded in the pursuit of better roles and pay.

Many of the women interviewed for this article were uncomfortable being named for fear of reprisal or stunted career development.

“I work like no tomorrow,” says a project manager, working in financial services. “And I don’t get promoted. I just get pigeonholed because I do well in that role. They’re not willing to invest in me. You look in the mirror and you think, is it a reflection of me? What am I not doing right? I’m not going to sugar-coat it—there are days where I get so upset. I just don’t know what more I can do.”

Leonie, an agile delivery manager working in the retail industry, who only gave her first name, saw this first-hand earlier in her career.

“There weren’t many people of my color in higher positions,” she says. “I’m not saying you should hire someone as a token [gesture], but I didn’t see many people progressing.” Her comments tallied with the BCS/CBF research, which found that Black women rarely advanced into more senior technology roles, with women of all ethnicities poorly represented at IT director (17%) and programmer/software developer level (16%). [Editor’s note: BCS did not have figures for Black women in these roles.]

The Black women interviewed believe the IT industry has slowly improved on diversity optics, but action is lagging on changing perceptions of actual capabilities. One interviewee, a business relationship manager in the UK’s civil service, believes Black women continue to struggle to fit into work cultures, with senior managers claiming project wins as their own, and colleagues often downplaying their skills, regardless of their seniority.

“If I sit in a room with 10 colleagues and I’m the only Black woman or person, I can assure you they assume I’m the one taking the minutes, even though I might be the more senior,” she explains. “We’ve got the optics there. Now we need to work on inclusion, and see the benefits we have to offer.”

20,000 Black women ‘missing’ from UK tech industry

The BCS and CBF study, which analysed data from the Office of National Statistics (ONS) and represented views of 350 Black women, also concluded that over 20,000 Black women need to be recruited, alongside the 12,000 already working in the sector, to fill the gap, attributing the deficit to ‘tech bro’ cultures, inflexible working conditions and a lack of career development support.

Plus, approximately two thirds of the CBF network interviewed felt they faced more barriers to entry than women from other ethnicities, with 21% saying that diversity and inclusion (D&I) polices have a negative effect on their ability to progress into more senior roles. And despite 360,000 ethnic minorities working in IT across the UK, minority groups were twice as likely as their white counterparts to work in non-permanent positions, far more likely to be unemployed, and less likely to hear about jobs from word-of-mouth.

Jacky Wright, chief technology and platform officer, McKinsey.

Jacky Wright

“When I started out to where we are now, those same barriers still exist,” says McKinsey’s first chief technology and platform officer, Jacky Wright, named the UK’s most influential Black person by The Powerlist in 2021, when reflecting on the report. “We’re having a discussion, but we still have a very long way to go.”

Sharon Prior, interim CIO at Card Factory, agrees that change has been slow, especially in the boardroom.

“Part of the challenge for women in tech is the low entry, certainly in the C-suite,” she says. “In the C-suite, I have very few peers, and even fewer who are Black. It hasn’t progressed over the last few years.”

Leonie, the agile delivery manager, believes that the lack of Black women working in technology is a multi-faceted societal problem, but suggests more must first be done to re-evaluate what career opportunities are available to young girls, many of whom are discouraged from math and science curricula from an early age.

She references how Black women, particularly those of Caribbean heritage, are often over-represented in the ‘5 Cs’ of cleaning, catering, clerical, cashiering, and childcare.

“IT is stereotypically seen as a career option for white male geeks, so I believe how we advertise roles and the language we use will attract Black women,” she says.

These comments follow on from those of Dr. Anne-Marie Imafidon, the computing prodigy, author, and CEO of Stemettes, who explained at last year’s Official CIO UK Summit that many non-minority colleagues simply don’t expect to see Black women working in science or technology professions.

“I think the biggest barrier is that image and what we see as success, what talent could look like,” she said, in-part explaining the backlash she experienced when appointed as the host of UK’s math TV show, Countdown.

Build diverse workplace culture with inclusion, psychological safety

Black women in technology say that high-profile events, such as George Floyd’s murder, Ketanji Brown Jackson’s appointment as the first black Supreme Court justice, and the Windrush scandal—when British citizens of West Indian heritage were wrongly detained, lost jobs or threatened with deportation—have started a conversation on diversity, but many feel that workplace culture is little better now than it was 10 years ago.

Yet Dolica Akello-Egwel, a software engineer at the Science and Technology Facilities Council in Swindon, Wiltshire, says she struggles to adapt to working in cliquey ‘Redditor’-type working cultures, while others interviewed felt they weren’t privy to watercooler conversations, and didn’t feel considered or included in organizing social gatherings, particularly those who didn’t drink alcohol or who had childcare or carer responsibilities.

Jessie Auguste, software engineer at Cybsafe.

Cybsafe

Some organizations are tailoring their social policies to be more inclusive, such as at security awareness training firm Cybsafe. Jessie Auguste, a software engineer at the behavioral risk platform company, says the firm’s technology team took part in an asynchronous Raspberry Pi advent calendar challenge over Christmas, building their own Pi project and communicating with each other on a Slack channel.

Yet if considering and including Black women in social gatherings is one issue, a bigger obstacle lies in conscious and unconscious bias.

Multiple Black women told CIO.com they faced discrimination in both fledgling and advanced careers, from being mistaken for colleagues, accused of being overly aggressive or emotional in meetings, and called out for their choice of attire and hairstyle. Some women spoke of their work being passed off as others, or of clients disbelieving their technical knowledge, experience or qualifications. A senior technology executive says she was once ignored by a vendor in a sales pitch, despite being the most senior executive in the room and having the final sign-off on budget.

“Myself and a person I mentor both got told we were both diversity hires,” says a deputy digital director in public sector. “And that there were people within the team who were upset we’d gotten hired and promoted, and they hadn’t. I heard that through the grapevine. She directly heard, ‘You don’t deserve the job.’”

In the BCS/CBF report, other Black female technology professionals said diversity hiring made it easier to get an interview or to be hired for a role, but, on occasion, the hiring manager took a ‘pet to threat’ attitude, whereby the hired woman is initially tokenised or underestimated, before being deemed a threat to the status quo.

Maryam Abdul Elahi, a senior product designer at Skyscanner, experienced the downsides of diversity hiring in a previous position. Upon leaving the organization, the recruiter told her that she had been a token hire.

“When you’re a token hire, none of what you say or do is of value,” she says. “You’re never put on any strategic projects or features. You’re almost relegated to the absolute bottom of the to-do list from a team or roadmap perspective. Then if you voice it, that’s a problem.”

Within this culture, Black women talk of the value of psychological safety through support from peers, allies, sponsors and employee resource groups (ERGs), and the need to context-switch between different personas to fit into a working culture not designed with them in mind.  

“Everyone you’ve ever met from an underrepresented group is uncomfortable all the time,” notes a deputy digital director in UK government. She says she was the first Black professional there, and it took almost 15 years before she experienced a situation where she was in a room full of people who looked like her.

“I try and be my authentic self at work but there’s a piece, especially at more junior levels, you have to code-switch because I’ve heard through different networks that if you don’t speak a certain way, then people’s bosses have said to them, ‘You’re not going to get a promotion.’”

Card Factory’s Prior admits her ascension to the senior ranks meant fitting in by any means necessary—even taking up evening classes and listening to other types of music to be able to join conversations with colleagues.

Sharon Prior, interim CIO at Card Factory.

Sharon Prior

“I would say 99% of white colleagues don’t mix socially outside their ethnic group,” says Prior, who has a career spanning senior IT roles at Ann Summers, Avon, GSK and the Post Office. “The only time they mix is when they’re at work. There’s almost an inherent mistrust [of others] because humans are historically tribal.”

It’s a comment which resonates with Lomi Aschwanden, ISV principal partner manager at Salesforce, when speaking to CIO.com in a conversation with The Women’s Association network.

“It’s common for people to categorise or put others into a box as a way to better understand them,” she says. “But sometimes this can do more harm than good.”

Monica Pemberton, CTO, Nacubo

Nacubo

As CIO, Prior believes that Black female technology leaders are subject to second guessing from senior leaders, and needing more time to build trust than white peers who have a “higher threshold” and “level of confidence” in the boardroom.

Monica Pemberton, CTO at Washington-based higher education professional development association Nacubo, agrees, saying that being resilient is essential to both progression and career longevity.

“I’ve done the grunt work, I’ve earned my stripes,” she says. “But you’ve got to have really thick skin and be confident in what you’re doing.”

The struggle for promotion and being heard

For Cybsafe software engineer Auguste, the visibility of being the only Black woman on the technology team can create undue pressure.

“You’ve got the responsibility of, ‘I need to perform well, because as an individual, I need to be perceived well,’” she says. “But it’s also, ‘I need to perform well and be liked, because I’m representing all Black women in technology now.’”

Yet Akello-Egwel says confidence can be hard to come by in a workplace that’s not always understanding or accommodating, especially when you feel like you’re not supposed to be there.

“I think people don’t appreciate that confidence can be contextual when you’re the odd one out at your job,” she says. “It takes a certain type of person to push through that discomfort, or find a way around it.”

In the BCS/CBF report, few Black women believed they were promoted based on individual performance alone, leading many to suggest they need more skills and experience than others to get that opportunity.

One IT service manager says she was at the point of burnout through the pandemic, working various roles, while volunteering and studying cloud certification training courses with AWS. Despite this, she felt she was blocked from further opportunities at her organization in the financial services industry.

“If it hasn’t worked once or twice, you’re like, ‘Okay, it’s a bit of anomaly,’” she says. “But when it hasn’t happened three or four times, it’s, ‘What more do I need to do?’”

This lack of progression can mean the inevitable, particularly when looking to develop your skillset and career opportunities, adds Prior.

“My key [to becoming CIO] was moving roles,” she says. “I couldn’t go one line up at an organization to become CIO, because you get pigeonholed. To get to CIO, I had to move roles—and quickly.”

A regular obstacle to achieving progression can be communication. Prior believes that contrasting cultures and upbringing often results in different communication styles, which may cause umbrage in more typical white, middle-class working environments. This is something a business relationship manager, who asked not to be named, saw in contrasting ways across the public sector. At one institution, she worked predominantly with working-class white men, but is now at a government department predominantly staffed by middle-class civil servants.

“[At the last organization], you’ll come across quite bullish; you’ll give as good as you get, and then you’ve got their respect,” she says. “Whereas here, if you do the same, you’re definitely aggressive. You’re stepping out of line, overly emotional or sensitive, or you just don’t know what you’re talking about.”

Skyscanner’s Abdul Elahi goes further, saying she missed out on an internal promotion at a previous company when the recruiting manager told her he didn’t like her body language in the interview. The hiring manager, a white male, later told her that promotion was a matter of if, rather than when.

“That was conscious bias,” she says. “You cannot sit through an interview, have four people on a panel, create feedback, and all of you look the same. And then think it’s okay to deliver that feedback.”

For Wright, a former CDIO at HMRC and CIO at BP, and more recently CDO at Microsoft US, Black women continue to be the least likely to be supported by senior leaders. “Even if you’re [in the workplace], you’re the least likely to be supported to thrive in the community,” she says.

The importance of genuine role modelling, sponsorship, allyship

Role modelling is critical, says Wright, but it must be done authentically to yield results. She urges organizations to “chisel away at it,” taking the responsibility and opportunity to profile technical people from all minority groups so aspiring students and future employees understand they’re there.

Many of the women interviewed here said it was somewhere between 15 and 40 years before they saw someone who looked like them in a work setting, and while they expressed the benefits of role modelling, there was some cynicism around their organization’s motivations behind it.

Bola Rotibi, analyst at CCS Insight.

CCS Insight

Some professionals saw the risk of being ‘used’ by HR leaders to display a diverse workforce, or by business leaders delivering against a D&I policy. Bola Rotibi, a long-time analyst at CCS Insight with over 25 years of experience in engineering, software development and IT analysis, says Black women should take the opportunity, nonetheless.

“That will always be a question,” says Rotibi, a chartered engineer by trade and now chief of enterprise research at the analyst firm. “But if you spend your time worrying about that, you’ll never get anything. My point would be don’t spend time thinking about it because you’re detracting from what you’re actually giving. The challenge for diversity, whether that’s women or ethnic, is imposter syndrome and getting over that. [You need to say] I’ve got every right to be here.”

Promoting internally can have a powerful impact on talent attraction and retention, with a deputy digital director in the UK public sector saying she received some 60 messages after promotion, many from colleagues newly incentivised to go for their own promotion. Yet a business relationship manager working in the UK’s civil service argues that getting the opportunity is simply the first step. True role autonomy and accountability is where the diversity conversation moves from optics to action.

“Once you get into those positions, it’s the scrutiny that goes behind that,” she says. “How much support are you actually getting? Are they recognising the work? Are you working 50 times harder than your colleagues, which is definitely yes for some people.”

Allyship and sponsorship are equally important, particularly for those Black women looking to move into more senior roles.

“The only way I’ve progressed is because of sponsorship from direct line managers, or their superior,” says Prior. “Without that, there’s no way I’d have progressed at all. It’s the same as when women got the vote. They needed the allyship of men. We need strong allies, but it has to be authentic. You can sniff out when it’s not.”

Many of the women here say they’ve benefitted from mentors, particularly from other women and women of color, but say that allyship and sponsorship can be done by anyone willing to be the voice of reason.

“There needs to be somebody else in the room who can speak up for you and make sure [discrimination] isn’t happening to you systematically, and isn’t being tolerated,” says Auguste. “Because it’s not something I could fix if it was happening to me. If they’re doing it well, it shouldn’t be performative. It’s doing something that’s difficult, even when it might not benefit you, when you’re being a true ally.”

How to improve black women in tech representation

The Black women in technology interviewed believe that improving representation in the IT industry starts with encouraging young Black girls on the varied career opportunities within IT, re-evaluating how graduate courses and entry-level technology jobs are advertised, how DEI policies align to corporate values, and the responsibilities and targets expected of senior business leaders. KPIs are essential to monitor organizational progress and make DEI its own accountable business initiative, while more must be done to move the needle on the gender pay gap—with gender- and name-blind recruitment a step in the right direction.

More must also be done to give black women an opportunity, whether they’re entering the industry for the first time, joining from another sector or returning after a career break. Cybsafe’s Auguste has seen such opportunities first-hand.

Having studied psychology at the University of Sheffield, England, she started in an entry-level marketing position at the security firm before moving into the customer success department. Through some fortune, and well-natured engineers, another opportunity fell her way.

“The engineers, off their own back, volunteered an evening a week to do an introduction to Python course,” she says. “It was from there I realised it was a possible career. Before that, I had no idea somebody without a computer science degree would be able to make that switch.”

A year on, and several YouTube and Google rabbit holes later, as well as working with CBF, Auguste was working in the engineering department. She believes that Black women of all ages are interested in pursuing technology careers, but are all often unaware where to start in a working world where employers typically favor those who can bring instant value.

Lomi Aschwanden, ISV principal partner manager at Salesforce.

Salesforce

There’s a belief, too, that more inclusive and flexible workplaces will improve talent attraction and retention. Authentic mentors, allies and sponsors can help build confidence and enhance career prospects, while the growing number of external social communities and networks can only help Black tech women build better connections and allies in the long run. Salesforce’s Aschwanden, suggests ERGs in particular, such as the Black Organization for Leadership and Development (Bold) ERG at the SaaS CRM vendor, can help “find community, inclusivity and a safe space to connect with peers,” she says.

But education must not only take place in the classroom but the boardroom, too. At last year’s Official CIO Summit, Imafidon spoke of the need for young girls to imagine future careers in technology, but for business and technology leaders to see the value they can bring.

“How are you giving people that right chance or opportunity so that you, as a CIO, can benefit from untapping some of that talent, or a different perspective,” she said.

Imagining a future career is just the beginning. Nacubo’s Pemberton urges black tech women to be consistently proactive, emphasising working on one’s own personal branding, implementing shared values across the organization and its supply ecosystems, and building networks to help each other in their careers.

“Rather than complain about it, you’ve got to be part of the solution,” she says. “That’s why I’ve been doing volunteer work with Blacks in Technology and The Association of Women Technology Champions, trying to figure out what the disconnect is. I’m also mentoring students at HBCUs [historically black colleges and universities] and going into elementary schools, figuring out what the issues are.”

A simpler starting point for non-minority groups, says Prior, is to make sure Black women are in the room for the conversation, and then take the opportunity to listen and learn. “Listen more. Take all that noise and judgement out of it,,” she says. “Really listen to your Black colleagues.”

CIO, Diversity and Inclusion, IT Leadership, Women in IT

The manufacturing industry is undergoing a renaissance, thanks in part to advances in information technology. Two IT leaders who have been on the forefront of that are Kim Mackenroth and Chris Nardecchia.

Kim Mackenroth is vice president and global CIO of Textron, a Fortune 302 multi-industry company with around 33,000 employees worldwide. Her global IT organization comprises five business-segment CIOs, as well as shared services provided by the CISO, CTO, and the leader of enterprise business systems. CIO 100 award-winner Chris Nardecchia also wears multiple leadership hats in his role as senior vice president and chief digital and information officer of Rockwell Automation, the world’s largest pure-play industrial automation and IoT company.

These two industry leaders have much in common, from their parallel career paths to their leadership philosophies and experiences. When the three of us spoke for a recent episode of the Tech Whisperers podcast, we explored how Mackenroth and Nardecchia are succeeding with their transformation journeys, winning with people, and not only answering the CEO’s call but also changing the IT narrative to get those calls in the first place. Afterwards, we spent some time talking about their career journeys and the technology that excites them about the future of manufacturing and business. What follows is that conversation, edited for length and clarity.

Dan Roberts: You have similar career stories in that neither of you started out in IT and never intended to get into this profession. Where did you start, and how did you get here?

Kim Mackenroth, vice president and global CIO, Textron

Textron

Kim Mackenroth: I believe a career path is not a ladder but a jungle gym of experiences — some lateral, some vertical — that provide a solid foundation for the ones that follow. While I never intended to be a CIO, I have always had the philosophy of ‘take the role that scares you the most because that is where you will grow the most.’

Throughout my career at Textron, I have had many roles, spanning supply chain, manufacturing, integrated product teams, and working on helicopter programs. There was an opportunity to be part of a new way of conducting business at our Bell business unit, so I took that role, and as a result, the CIO took notice and asked me to join his organization as a direct report. He rotated me throughout IT, and then I became a CIO of two other businesses prior to becoming Global CIO.

Chris Nardecchia, SVP and chief digital and information officer, Rockwell Automation

Rockwell Automation

Chris Nardecchia: I started as a chemical engineer doing chemical engineering things, building and operating chemical and nuclear processes, producing polymers and nuclear fuel, etc. That led me into a role in the pharmaceutical industry, again, building and operating processes to manufacture pharmaceuticals. As part of that role, I got involved with computer control of manufacturing processes, and that’s when I started to code. That then led to an increasing involvement of trying to move data across the enterprise to compare manufacturing operations around the world.

During this period, when we were expanding at a rapid pace and building new manufacturing plants around the globe, I was approached by the head of our manufacturing division to lead the implementation of SAP across our manufacturing network. I realized it was career-limiting to tell the president of a division ‘no,’ and that started my journey into IT.

From that point forward, I was fortunate enough to lead both the IT and OT teams within global pharmaceutical manufacturing and supply chain organizations. Those experiences prepared me well for what Rockwell Automation needed in their next IT leader — someone who can not only run the IT operations but also understand manufacturing in the OT environment.

Dan Roberts: I recently spoke with Charlie Feld, who said that, before the internet, we had more time to build relationships and to think. But we also we didn’t have the technology to do all these great things we’ve come up with since. What technology are you most excited about now and as you look to the future?

Kim Mackenroth: Earlier in my career, I worked at Bell’s drive systems center, where we build all the high-tolerance parts for our complex gearboxes that go into our helicopters. We had large batches of parts, which would have to get through an enormous amount of processing, machines, and external providers to complete. We used to say they travel many miles to hopefully yield the parts that we needed for assemblies.

We had a dream at that time: Wouldn’t it be great to live in this world where we could have one piece part flow. Where we could have machines that were capable of digital loops where they could adapt, they could produce a quality part every time, they could do multiple operations, they could significantly reduce the amount of equipment that was required, the number of operations and the amount of span time.

Bell now has a manufacturing technology center — a purposeful factory of the future. It was all about creating and testing the capabilities that I just talked about, and how to embed that back into our core manufacturing processes. Everything that I just described is happening, and it’s the culmination of engineering, manufacturing, modern machines and software, all coming together to yield the future we dreamed about.

Chris Nardecchia: Those things really excite me. We’re clearly in the age of AI. We’ve seen the amazing progress with open-source AI, with ChatGPT, and previously with DALL-E. This is just the tip of the iceberg. Applying similar capabilities to manufacturing, as Kim just went through, is in progress, and it’s just going to accelerate. I’m extremely excited about the exponential impacts that applying these technologies can have on manufacturing operations.

To cite just a few results that have been achieved with digitization at Rockwell, we’ve seen a 40% improvement in quality, a seven-figure improvement in productivity, and, prior to recent supply chain issues, our on-time delivery improved from 82% to 96%. These are big numbers, but imagine what the possibilities are when you apply advanced AI algorithms.

Here’s a real-life example at Rockwell. Part of our manufacturing process is to create electronic components with circuit boards, and you embed computer chips in them. We have six plants with 24 manufacturing lines and 50 machines that contain 2,000 nozzles that place these chips from a spool at a very high speed onto the printed circuit board. The exact placement on that board is critical. If you get these off a few millimeters, then you’re scrapping boards.

Over time the nozzles can wear out and drift away from the proper location. To avoid bad boards being created, we used to perform maintenance on a time schedule, and we’d frequently replace good nozzles that still had life in them. Now, we replace them just before failure by leveraging an AI solution that predicts the drift of these nozzles at very high speed and notifies the operator via a visual application when they’re predicted to fail.

At a cost of $5 to $500 per nozzle, it saves significant costs, but more importantly, it maximizes the machine utilization and uptime. This is just one example. If you think about the countless manufacturing lines across the world, there’s just huge opportunities.

Roberts: Kim, you talk about software like driving a car. What do you mean by that?

Mackenroth: Everything was previously hardware-centric. It’s like in the example that Chris gave, we had those windows of opportunities where we’d replace hardware because the source of the world was hardware. Now, software eats hardware for lunch.

Look at Tesla. When you get into a Tesla, it’s not all the bells and whistles from a hardware perspective. That’s not what it’s about. It’s about that software experience — having those monthly updates, getting the new features and functions. Probably not the most comfortable seat, not all the little ecosystems that you would have in a luxury vehicle, but the enthusiasm is off the charts because of that customer engagement, that customer experience of, what am I going to get next? What am I going to be able to do next? None of that could have been accomplished with the previous automotive industry approach.

Roberts: Back in the day, we used the phrase eating our own dog food — or drinking our own champagne. Chris, you talk about it as Rockwell on Rockwell. What does that look like?

Nardecchia: The concept here is borrowed from the software world where we use our own products and our own solutions and our own manufacturing facilities, not only to improve our own operations, but to showcase them for our customers. So in our manufacturing headquarters today, where there previously wasn’t any manufacturing because everything shifted overseas, we’ve now brought back manufacturing and demonstrated in almost a lights-out facility, one operator, all the technology advancements that people can apply.

This is us walking the talk, not only with our own products but our partner ecosystem so that we can feel good about what we’re promoting to our customers and find the flaws of the implementation experience. If the customer is going to experience this, we want to experience it first and then modify what that experience is for the end customer. Demonstrating these capabilities in our own four walls allows us to speak about them with conviction with our customers.

Roberts: Is there going to be a manufacturing renaissance in the US?

Nardecchia: I think it’s happening and it’s driven by two or three things. One is the supply chain and the geopolitical events that are happening. That’s awakened people to say, ‘What do we do and how do we secure our supply chain?’ It’s also driven a little bit by the labor shortage — how do we sustain a society in a growing population through automation and that marriage between machines and human intelligence? How does that work?

A number of companies that moved manufacturing to low-tax havens are now announcing facilities being built in the US in the coming year. We’re seeing the semiconductors move from Asia over to the US. We’ll have to see if it stays and sticks, but I believe that you’re going to see more manufacturing centric in the US.

Roberts: Kim, after 27 years at Textron, what keeps you excited about what you do?

Mackenroth: I get this question a lot, and I would go all the way back to the beginning. I am so grateful for the group of leaders that brought me in at Bell where I began my career, the mentors that challenged me, and the wonderful teammates and colleagues I get to work with. There’s that phrase, ‘Hire people who amaze you and then teach them how to amaze themselves.’ I feel like Textron has done that for me, and it’s part of my legacy to those people that follow me to make sure they’re having a career journey that amazes themselves.

But there’s two big reasons why I’m here outside of all of that. I love the talent philosophy. It is rare in a multi-industry, global organization to have such a passion for developing and promoting people from within. That’s incredibly special and supports the opportunities that we can offer. My CHRO talks about community, cause, and career. That is important, but I would add people, purpose, and passion. My number one, most enthusiastic item is purpose, and if I summarize everything that we do at Textron, we literally defend freedom. We protect the warfighter. We save lives. We build time machines. We move humanity. Who else can say that?

Dig deeper into the career journeys and leadership playbooks of Mackenroth and Nardecchia by tuning in to the Tech Whisperers podcast.

Innovation, Manufacturing Industry

As companies migrate to the cloud, many providers are serving up industry clouds—cloud services that offer data models and workflows that meet the basic needs of companies in particular industries like banking, healthcare, and manufacturing. By taking care of table stakes requirements, these specialized clouds are saving companies time and money. And perhaps more importantly, they’re freeing up many industry leaders to innovate new services for customers.

“In the most recent IDC survey conducted for industry cloud users, about 46% of those users said they have already implemented at least one industry cloud, and about 47% said they are planning to do so in the next 12 months,” says Nadia Ballard, IDC research manager. “It’s a very fast growing space and very exciting.”

The uptake is accelerating, and despite being relatively new on the scene, with a consensus to approach with clarity and caution, industry clouds are steadily proving their worth and the benefits speak for themselves, especially around visibility and transparency, according to Chad Wright, CIO of robotics company Boston Dynamics.

“When I joined the company three years ago, it was your typical 10 silos for 10 departments,” he says. “People were building spreadsheets and trying to do their own things. As a leadership team, we needed to build a platform that would allow visibility across the organization because we felt it was going to be advantageous in our speed to market with our own robots, and we’ve seen that. In our first year of ERP, we shaved 75% off of our order cycle time, and that had a lot to do with that visibility that these industry clouds could provide us.”

For Kumar Iyer, business technology senior leader at KeyBank, there were challenges to face, including legacy technology and a lot of manual processes. So the options were to either invest and build from the ground up, or look at industry clouds. They chose the latter.

“The reasons why we did that were essentially because of  frequent updates, new features that we could get out of the box quickly without having to build, and the ability to solve for the table stakes issues,” he says. “The things you have to build in this space aren’t really offering us any competitive edge, but there’s still a significant amount of investment in actually getting those things done.”

CIO’s Stan Gibson moderates this high-level panel to get clarity on the benefits and potential pitfalls of the rapidly growing market of industry clouds. Here are some edited excerpts of that conversation. Watch the full video below for more insights.

Nadia Ballard on the benefits and pitfalls of industry clouds: The most immediate general benefit industry cloud users see is in fast growth, as they are so custom tailored to the particular industry or vertical, providing a fast onramp to cloud. It’s the preconfigured security and compliance conditions that are already there. There’s not much need for customization on the side of the customers, which usually takes a lot of time and effort. More specifically, industry clouds are built recently, so they provide this open architecture, a lot of composability and extensibility, which are very important for users.

Nadia Ballard

On the pitfalls, it’s still early. A lot of times, the features and the benefits that your vendors mention are either rudimentary or still in development. So there’s a bit of ‘buyer beware’ in that sense. Overall, because industry clouds are industry specific, they’re also a combination of a lot of assets. They usually require higher consumption on the side of the customers from the original vendor. For some buyers, they could be wary of that because there could be a lot in it for them with that vendor. But the most common one we see with any cloud transition is not being well prepared for it. Industry cloud, by their very nature, require more sharing, collaboration, and openness with your data, and other assets. Organizations internally need to be prepared for that kind of shift in culture and openness.  

Chad Wright on business transformation: Three years ago, Boston Dynamics made a decision to try and build a robot and make a profit. And how do we do that considering we’re a 28-year-old company with no business processes around selling and marketing robots, or recognizing revenue or providing customer support. People use the term “digital transformation” and it was for us, but it was really a business transformation. We needed to create a platform that would support that fundamental transformation for the company.

Chad Wright

Boston Dynamics

We had people in the organization familiar with Salesforce, for example, so we looked at that as a platform to run our sales and marketing and customer support. From an ERP perspective, when we started thinking about financial accounting and manufacturing operations, we chose Rootstock ERP, which is built on the Salesforce platform. What we’ve done is built this single data model across our customers, orders, and products, allowing us the extensibility and time to value where we can roll out functions multiple times a year. Also, upgrades are nothing like they were years ago. I had 15 years of experience in traditional, on-premise ERP systems but with these cloud systems, we can move to value so much faster and provide value to our customers. And for me, as a CIO, that was fundamental to our strategy.

Kumar Iyer

Kumar Iyer on industry cloud efficiency: KeyBank has grown over the years organically as well as through acquisitions. But there’s a lot of legacy technology in play. That was one of the problems we were trying to solve with a lot of manual processes and complex integrations. So we looked at industry clouds. Then we landed on Salesforce financial services cloud because we were already using Salesforce within our commercial bank. We also use a managed package that sits on top of Salesforce called Encino. It’s very niche and specifically supports our commercial credit and underwriting systems. So that’s another area where we decided to go down this path of the industry cloud and it has helped a lot in terms of speeding up the process of adding new features quickly—especially out-of-the-box features—and sparing the time we used to spend before about solving these problems.

Chad Wright on reimplementation: I’ve worked on a number of ERP implementations at several different companies. Several were on-premise. The last couple have been more of these industry clouds. And it’s always the same thing for me. It’s taking the time and resources to invest in preparing for the implementation. So, do a current state and a future state analysis. That’s going to allow the business to galvanize their requirements and build out a vision of what they want to do. The first step is learning how to do it and many people aren’t familiar with that, particularly if these decisions are being made at higher levels in an organization. But that current state and future state analysis identifies the gaps you can then use to look at these industry cloud providers and see how they’re going to best benefit your business. That allows you to build a product roadmap. I find people don’t always spend the time to do that, and it gets them into trouble during implementation.

Nadia Ballard on the future for industry clouds: There are more industry clouds being built in more industries and verticals and subverticals. That increasing competition is driving verticalized and specialized solutions, but the use cases are very specific. And that is great, because in this sense, industry clouds are replacing those heavily customized on prem or prem cloud solutions organizations can build over years. And now you can have it à la carte and be able to implement the industry cloud use case solutions most relevant to you that can replace your previous setup. We are seeing the growing variety and abundance of industry cloud offerings will give users many more choices. We’re also seeing that as industry ecosystems continue to go online, they become centers for developing new industry clouds and shared applications, which is a very positive environment because it helps existent partners become more related and more creative. So the industry cloud landscape is getting more interesting, but it’s early days still, so I expect a lot of growth and dynamic changes, both to the vendors and how users adopt them and use the industry clouds. But I think it will be a fun ride in the next year.

CIO, Cloud Management, Digital Transformation, Innovation, IT Leadership

As companies migrate to the cloud, many providers are serving up industry clouds—cloud services that offer data models and workflows that meet the basic needs of companies in particular industries like banking, healthcare, and manufacturing. By taking care of table stakes requirements, these specialized clouds are saving companies time and money. And perhaps more importantly, they’re freeing up many industry leaders to innovate new services for customers.

“In the most recent IDC survey conducted for industry cloud users, about 46% of those users said they have already implemented at least one industry cloud, and about 47% said they are planning to do so in the next 12 months,” says Nadia Ballard, IDC research manager. “It’s a very fast growing space and very exciting.”

The uptake is accelerating, and despite being relatively new on the scene, with a consensus to approach with clarity and caution, industry clouds are steadily proving their worth and the benefits speak for themselves, especially around visibility and transparency, according to Chad Wright, CIO of robotics company Boston Dynamics.

“When I joined the company three years ago, it was your typical 10 silos for 10 departments,” he says. “People were building spreadsheets and trying to do their own things. As a leadership team, we needed to build a platform that would allow visibility across the organization because we felt it was going to be advantageous in our speed to market with our own robots, and we’ve seen that. In our first year of ERP, we shaved 75% off of our order cycle time, and that had a lot to do with that visibility that these industry clouds could provide us.”

For Kumar Iyer, business technology senior leader at KeyBank, there were challenges to face, including legacy technology and a lot of manual processes. So the options were to either invest and build from the ground up, or look at industry clouds. They chose the latter.

“The reasons why we did that were essentially because of  frequent updates, new features that we could get out of the box quickly without having to build, and the ability to solve for the table stakes issues,” he says. “The things you have to build in this space aren’t really offering us any competitive edge, but there’s still a significant amount of investment in actually getting those things done.”

CIO’s Stan Gibson moderates this high-level panel to get clarity on the benefits and potential pitfalls of the rapidly growing market of industry clouds. Here are some edited excerpts of that conversation. Watch the full video below for more insights.

Nadia Ballard on the benefits and pitfalls of industry clouds: The most immediate general benefit industry cloud users see is in fast growth, as they are so custom tailored to the particular industry or vertical, providing a fast onramp to cloud. It’s the preconfigured security and compliance conditions that are already there. There’s not much need for customization on the side of the customers, which usually takes a lot of time and effort. More specifically, industry clouds are built recently, so they provide this open architecture, a lot of composability and extensibility, which are very important for users.

Nadia Ballard

On the pitfalls, it’s still early. A lot of times, the features and the benefits that your vendors mention are either rudimentary or still in development. So there’s a bit of ‘buyer beware’ in that sense. Overall, because industry clouds are industry specific, they’re also a combination of a lot of assets. They usually require higher consumption on the side of the customers from the original vendor. For some buyers, they could be wary of that because there could be a lot in it for them with that vendor. But the most common one we see with any cloud transition is not being well prepared for it. Industry cloud, by their very nature, require more sharing, collaboration, and openness with your data, and other assets. Organizations internally need to be prepared for that kind of shift in culture and openness.  

Chad Wright on business transformation: Three years ago, Boston Dynamics made a decision to try and build a robot and make a profit. And how do we do that considering we’re a 28-year-old company with no business processes around selling and marketing robots, or recognizing revenue or providing customer support. People use the term “digital transformation” and it was for us, but it was really a business transformation. We needed to create a platform that would support that fundamental transformation for the company.

Chad Wright

Boston Dynamics

We had people in the organization familiar with Salesforce, for example, so we looked at that as a platform to run our sales and marketing and customer support. From an ERP perspective, when we started thinking about financial accounting and manufacturing operations, we chose Rootstock ERP, which is built on the Salesforce platform. What we’ve done is built this single data model across our customers, orders, and products, allowing us the extensibility and time to value where we can roll out functions multiple times a year. Also, upgrades are nothing like they were years ago. I had 15 years of experience in traditional, on-premise ERP systems but with these cloud systems, we can move to value so much faster and provide value to our customers. And for me, as a CIO, that was fundamental to our strategy.

Kumar Iyer

Kumar Iyer on industry cloud efficiency: KeyBank has grown over the years organically as well as through acquisitions. But there’s a lot of legacy technology in play. That was one of the problems we were trying to solve with a lot of manual processes and complex integrations. So we looked at industry clouds. Then we landed on Salesforce financial services cloud because we were already using Salesforce within our commercial bank. We also use a managed package that sits on top of Salesforce called Encino. It’s very niche and specifically supports our commercial credit and underwriting systems. So that’s another area where we decided to go down this path of the industry cloud and it has helped a lot in terms of speeding up the process of adding new features quickly—especially out-of-the-box features—and sparing the time we used to spend before about solving these problems.

Chad Wright on reimplementation: I’ve worked on a number of ERP implementations at several different companies. Several were on-premise. The last couple have been more of these industry clouds. And it’s always the same thing for me. It’s taking the time and resources to invest in preparing for the implementation. So, do a current state and a future state analysis. That’s going to allow the business to galvanize their requirements and build out a vision of what they want to do. The first step is learning how to do it and many people aren’t familiar with that, particularly if these decisions are being made at higher levels in an organization. But that current state and future state analysis identifies the gaps you can then use to look at these industry cloud providers and see how they’re going to best benefit your business. That allows you to build a product roadmap. I find people don’t always spend the time to do that, and it gets them into trouble during implementation.

Nadia Ballard on the future for industry clouds: There are more industry clouds being built in more industries and verticals and subverticals. That increasing competition is driving verticalized and specialized solutions, but the use cases are very specific. And that is great, because in this sense, industry clouds are replacing those heavily customized on prem or prem cloud solutions organizations can build over years. And now you can have it à la carte and be able to implement the industry cloud use case solutions most relevant to you that can replace your previous setup. We are seeing the growing variety and abundance of industry cloud offerings will give users many more choices. We’re also seeing that as industry ecosystems continue to go online, they become centers for developing new industry clouds and shared applications, which is a very positive environment because it helps existent partners become more related and more creative. So the industry cloud landscape is getting more interesting, but it’s early days still, so I expect a lot of growth and dynamic changes, both to the vendors and how users adopt them and use the industry clouds. But I think it will be a fun ride in the next year.

CIO, Cloud Management, Digital Transformation, Innovation, IT Leadership

As the world works to reverse climate change through decarbonization and reduced reliance on fossil fuels, the oil and gas industry finds itself at the epicenter of this challenge. Governments, institutional investors, consumers, and employees continue to exert growing pressure on oil and gas providers to decarbonize and adopt renewable solutions. In response, oil and gas majors are making headway in terms of carbon reporting, net-zero targets, and accountability. Many have even spun up renewable energy arms.

Innovation underpins corporate sustainability efforts. From an investment standpoint, sustainable solutions can also perform double duty, often yielding significant added value such as productivity and efficiency gains and new revenue streams. Increasingly, oil and gas companies are making strategic technology investments to accelerate sustainable digital transformation and deliver a competitive advantage. In this article, we’ll share opportunities for oil and gas companies to increase sustainability while achieving other business benefits.

Understand and reduce the environmental impact of services and workloads

Ironically, while technology holds the key to sustainability, it has also contributed to the problem. Recent studies indicate that data centers consume one percent of the world’s electricity, and The Royal Society estimates that digital technology contributes up to 5.9% of global emissions.

While inefficient equipment, buildings, and HVAC systems contribute to the problem, one of the most significant factors is the underutilization of data center equipment. Up to 25% of data center power is consumed by equipment that no longer performs useful work,[i] and only 10-30% of server capacity is used.[ii] Furthermore, according to HPE internal data, average storage utilization hovers around 40%.[iii] While organizations must plan for usage spikes and failovers, they also have opportunities to clean up workloads, retire unused equipment, and leverage newer, more efficient hardware and solutions.

Power savings represents just part of the equation. If an enterprise can do more work with less hardware, using fewer servers, licenses, and people, they save money while lowering carbon emissions.

Apply technology to improve efficiency, productivity, and sustainability

Clear visibility across infrastructure enables organizations to identify opportunities to expand operational efficiency, meet sustainability goals, and improve productivity. Using intelligent automation, oil and gas companies can monitor workloads and boost server utilization to optimize their investments while reducing their environmental footprint.

Infrastructure management solutions enable organizations to simplify lifecycle management through automation and surface new ways to operate more sustainably and efficiently. Oil and gas companies are also deploying self-healing solutions that predict, detect, and correct issues across the infrastructure using artificial intelligence and machine learning, often before the operator is aware of an issue. 

Furthermore, monitoring solutions allow companies to track real-time energy consumption, enabling them to reposition energy-heavy workloads to locations with lower energy costs or optimize usage for carbon emissions.

Make asset management more sustainable

Oil and gas customers rely on the latest technologies to give them a competitive edge. This often means replacing assets with several years of useful life remaining.

Upcycling programs can help enterprise businesses manage the financial and sustainability impacts of surplus equipment. Many companies have budget or purchasing policy constraints or do not need the latest top-performing equipment. By securing reasonable compensation for used equipment from such companies, oil and gas companies can extend the useful life of their assets and further reduce waste.

Drive sustainable digital transformation with HPE GreenLake

Through strategic investments, oil and gas companies not only increase their sustainability but can also reap additional rewards, such as increased efficiency and productivity, while maintaining a competitive edge.

HPE has a unique vantage point rooted in its own sustainability journey. HPE is committed to becoming a net-zero enterprise by 2040 and offers a portfolio of sustainable innovation, technologies, solutions, and cloud services. The HPE GreenLake edge-to-cloud platform can reduce the environmental impact of IT by enabling customers to flexibly scale IT to meet their needs, thereby improving utilization levels and avoiding the waste of overprovisioning.

GDT can help your organization make the most of HPE solutions to fast-forward sustainability, grow stronger, and become more resilient. Contact the experts at GDT to learn more about how we can help you accelerate sustainable digital transformation.

[i] Jon Taylor and Jonathan Koomey (2017) “Zombie/Comatose Servers Redux,” available at: https://www.anthesisgroup.com/report-zombie-and-comatose-servers-redux-jon-taylor-and-jonathan-koomey/  (accessed October 18, 2022)

[ii] Uptime Institute (2020) “Beyond PUE: Tackling IT’s wasted terawatts,” available at: https://uptimeinstitute.com/beyond-pue-tackling-it%E2%80%99s-wasted-terawatts (accessed October 18, 2022)

[iii] Storage Utilization: HPE customer experience

Innovation

Artificial Intelligence (AI) is fast becoming the cornerstone of business analytics, allowing companies to generate value from the ever-growing datasets generated by today’s business processes. At the same time, the sheer volume and velocity of data demand high-performance computing (HPC) to provide the power needed to effectively train AIs, do AI inferencing, and run analytics. According to Hyperion Research, HPC-enabled AI, growing at more than 30 percent, is projected to be a $3.5 billion market in 2024.

This rising confluence of HPC and AI is being driven by businesses and organisations honing their competitive edge in the global marketplace as digital transformation is accelerated and brought to the next level through IT transformation processes.

“We’re seeing HPC-enabled AI on the rise because it extracts and refines data quicker and more accurately. This naturally leads to faster and richer insights, in turn enabling better business outcomes and facilitates new breakthroughs and better differentiation in products and services while driving greater cost savings,” said Mike Yang, President at Quanta Cloud Technology, better known as QCT.

While HPC and AI are expected to benefit most industries, the fields of healthcare, manufacturing and higher education and research (HER) and Finance stand to gain perhaps the most due to the high-intensity nature of the workloads involved.

Application of HPC-enabled AI in the fields of next-generation sequencing, medical imaging and molecular dynamics have the potential to speed drug discoveries and improve patient care procedures and outcomes. In manufacturing, finite element analysis, computer vision, electronic design automation and computer-aided design are facilitated by AI and HPC to speed product development, while analysis generated from Internet-of-Things (IoT) data can streamline supply chains, enhance predictive maintenance regimes and automate manufacturing processes. HER utilises technology to explore fields such as dynamic structure analysis, weather prediction, fluid dynamics and quantum chemistry in an ongoing quest to solve global problems like climate change and achieve breakthroughs and deeper exploration through cosmology and astrophysics.    

Optimising HPC and AI Workloads

The AI and Machine Learning (ML) algorithms underlying these business and scientific advances have become significantly more complex, delivering faster yet more accurate results, but at the cost of significantly more computational power. The key challenge now facing organisations is building HPC, AI, HPC-enabled AI, and HPC-AI converged workloads—while shortening project implementation time. Ultimately, this will allow researchers, engineers, and scientists to concentrate fully on their research.

IT support would also need to actively manage their HPC and AI infrastructure, leveraging the right profiling tool for optimisation of HPC and AI workloads. Optimised HPC/AI infrastructure should deliver the right resources at the right time for researchers and developers to accelerate computational processes.

In addition, understanding workload demands and optimising performance helps IT avoid additional workload and extra labour for finetuning, significantly reducing the total cost of ownership (TCO). To optimise HPC and AI workloads effectively and quickly, organisations can consider the following steps:

Identify key workload applications and data used by the customer, as well as the customer’s expectations and pain pointsDesign infrastructure and building the cluster, ensuring that hardware and software stack can support the workloadsContinue the process of always adjusting and finetuning

QCT leverages Intel’s profiling tool Intel Granulate gProfiler to reveal the behaviour of the workload before tapping its deep own deep expertise to analyse the behaviour and design a fine-tuning plan to help with optimisation. Through this process, organisations can ensure rapid deployment, simplified management, and optimised integrations—all at cost savings.

AI continues to offer transformational solutions for businesses and organisations, but the growing complexity of datasets and algorithms is driving greater demand on HPC to enable these power-intensive workloads. Workload optimisation effectively enhances the process and, at the heart of it, enables professionals in their fields to focus on their research to drive industry breakthroughs and accelerate innovation.

To discover how workload profiling can transform your business or organisation, click here.

Artificial Intelligence, Digital Transformation, High-Performance Computing

By Michael Loggins, award-winning executive IT leader

Industry 4.0 has vast potential to transform what factories can do. Manufacturing can be faster, more data-driven, more responsive to the needs of workers and customers, and more powered by innovations such as artificial intelligence, internet of things, digital supply chains, and blockchain. While the possibilities of Industry 4.0 are extraordinary—and realizing them is seemingly just within our reach—there are still obstacles to overcome before we can feel truly comfortable making them a reality.

Where I see the biggest dissonance today is in how companies are allowing both IT and the manufacturing groups to exist inside their organizations. Traditionally, the value of IT in the manufacturing industry has been to provide the factory floor with the resources they need, and then to stay out of the way. And in the past, that was really the best approach, because the controls that IT needs—particularly for security—typically aren’t conducive to maintaining an efficient and optimized factory environment.

Industry 4.0 Requires New Ways of Working Together

In the world of Industry 4.0, the separation between IT and the factory floor pretty much disappears. Today, it’s almost mandatory that IT sits in the middle of the factory and is seen as a valuable partner and an essential business function. But, in many organizations, the traditional dissonance between IT and the factory floor is still there; leading to conflicts in which the health and security of the business are jeopardized due to misalignment. Whether that’s the security of the entire organization, or the efficiency and efficacy of the operational technology on the factory floor, neither scenario is acceptable as they’re both preventable.

What’s needed now is a growing understanding on both sides, so the divisions and dissonance are eliminated, and cooperation and teamwork are celebrated. IT needs to figure out how to reduce its need to control everything, so that teams can protect what needs to be protected while supporting the operational technology (OT) environment in ways that don’t negatively impact productivity, efficiency, and automation on the factory floor.

At the same time, the factory needs to understand that they are not technologists and don’t have a wide enough scope to view the entire environment in order to protect OT. This means they’ll need to be able to bend a little to let IT be part of their conversations. If the IT team is somehow iced out, the factory may run just fine, but business operations are substantially more vulnerable to a major disruption due to a cybersecurity attack. Nobody wants that to happen. So both sides will need to drop tradition and ego to create a win-win situation for the organization.

How IT Can Support the Changes Needed for Industry 4.0

Let’s look at some ways IT can do our part.

Earn our seat at the table. Firstly, if we can’t keep the printers and computers on the factory floor running, there’s no way we’re going to be invited in to even talk about securing the environment. So there is a minimum “pay to play” mindset of operational excellence that has to be put in place to even get a seat at the table.

At the table, the IT team must be prepared. We can’t go in talking about the factory floor in the same language and terms that we would talk about a traditional office environment. It’s a different world, and if IT doesn’t understand that world–if we don’t take the time to live in that world–then how can we possibly go about protecting it? 

That means spending time on the factory floor; talking to factory staff and management to get deep in the weeds to understand the methodology they are using for quality, efficiency, and everything in between. You have to make sure you figure out how to maintain it before you can figure out how to protect it.

Practice patience. The other key mindset for IT is patience. Once you get into the operational side of things, you’ll be overwhelmed by how much there is to learn, and by the amount of technology and processes you’ll need to protect. If you try to address everything at the same time, you’ll fail. Worse, you will burn bridges, reinforce the dissonance and, eventually, you’ll get removed from the table.

So, for us in IT, it’s about starting small, making sure your OT colleagues understand that you have their environment in mind, and that you’re not going to inadvertently shut down the factory. Ultimately, IT needs to be viewed as a true business partner protecting the factory from all kinds of vulnerabilities, while also creating the assurance that OT won’t be held back. It’s about doing the work in a way that is sustainable and secure.

Building Empathy to Realize Industry 4.0

Without people and process, the new technologies of Industry 4.0 are never going to be fully maximized. In fact, I’ve seen organizations put in amazing technology, but without paying enough attention to how it impacted the factory floor; the return on the investment was pretty much zero. CISOs need to demonstrate empathy and a true understanding of the challenges of keeping the factory working every day. This includes knowing how failures of equipment and machinery can be disastrous for the OT team.

It helps to become friends, or at least tight colleagues, with factory management, floor supervisors, and machinists. Get to really know those people who are your customers. As with any relationship, there needs to be a strong commitment from both IT and the factory floor to resolve issues, but I think it’s our responsibility in IT to go a little further than halfway in order to train our people, and transform our mindsets.

We have to make sure our IT staff are equipped to work with the OT side of the company. We have to spend time on the factory floor and engage with the philosophy and values and mindset of the people there. Sometimes working on the factory line gives you the right amount of empathy to understand what’s going on.

Collaboration Enables Innovation for Industry 4.0

If you can get your teams working together, the possibilities are tremendous. The speed of delivery should increase and more importantly, you’ll have alignment between your IT and engineering groups, creating space for real innovation to happen. Bot IT and OT are composed of problem solvers that are in their fields because they know how to make things better: they just have different sets of tools.

By taking people who have similar drives, backgrounds and passions for fixing problems and putting them in a room, you’ll achieve amazing levels of innovation and countless creative solutions. And because the work is done together, as a team, the designs are more stable at every stage. They will be easier to implement, easier to manage and operate, easier to secure, making adoption measurably faster.

By removing the dissonance, you can totally change how you’re able to deliver value both at the factory floor and to your customers. Industry 4.0 becomes more than just an exciting possibility; it becomes the new reality.

Read more on Industry 4.0 in this article

About Michael Loggins:

SRT author, Michael Loggins is an award-winning executive IT leader focused in strategic business alignment, customer success and standardizing global IT operations.

IT Leadership, Manufacturing Industry