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CCE 2023 Executive Interviews | Sanjib Sahoo & Vala Afshar

 

Catch a LIVE Constellation Connected Enterprise 2023 executive interview between Sanjib Sahoo, Chief Digital Officer at Ingram Micro, and Vala Afshar, Chief Digital Evangelist at Salesforce.

Sanjib shares how his background shaped a passion for digital transformation, as well as trends, tips, and lessons learned about digital adoption, optimization and preparing for a digital future.

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Carnival aims to leverage scale, optimize across its cruise lines

Carnival Corporation, known for its family of cruise lines, is implementing a centralized system to optimize the management of equipment and machinery across its brands and ships.

The implementation of Maritime Asset Strategy Transformation (MAST) will be carried out in 2024 with savings being delivered in 2025 and 2026. The company sees a multi-year benefit of savings north of $100 million.

Carnival's project highlights how companies are managing transformation efforts with balanced approach between growth and efficiency.

Carnival, which has recovered from the COVID-19 pandemic, operates AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn. The plan for Carnival is to leverage its scale to offset inflation as drives revenue growth.

The system was outlined on Carnival's fourth quarter earnings conference call.

"MAS is a centralized system developed to optimize the management of equipment and machinery across all brands and all of our ships. MAS will allow us to leverage spare parts more effectively across the entire fleet and optimize our maintenance schedules and practices, all of which will strengthen our efficiency and reduce unplanned maintenance overtime," said Carnival CEO Josh Weinstein.

Carnival's fiscal 2023 revenue hit an all-time high of $21.6 billion with a net loss of $74 million. The company has ramped up its advertising in the last year and has more than two-thirds of its 2024 revenue booked. The company has also been paying down debt and ended 2023 with a bit more than $30 billion of debt, ahead of projections earlier this year.

For 2024, Carnival said it will see higher ticket prices, onboard spending and occupancy rates across its brands while maintaining advertising spend at 2023 levels. While the MAST implementation is worth watching, Carnival is looking to save money by using Starlink for Internet access and continue to consume less fuel.

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Why digital, business transformation projects need new approaches to returns


 

Business transformation projects will require more holistic thinking about likelihood of success, difficulty of implementation and durability of outcomes when it comes to returns on investments.

According to a Constellation Research report by Ray Wang, artificial intelligence and business transformation projects require a more holistic view of value created. The report outlines Constellation Research's Return on Transformation Investment (RTI) methodology, which accounts for four elements (cost, benefit, probability and project type) to consider for any digital transformation project.

In numerous customer stories about transformation projects, it's clear that enterprises need to play the long game. However, there's also a need to show returns incrementally. The balancing act is tricky for CXOs.

To balance traditional returns as well as transformational benefits, enterprises need to think through the following:

  • Likelihood for success. Transformation projects often sound great and feature management consulting speak. But ranking projects by likelihood of success is often lacking.
  • Probability of impact, which requires validating similar projects with early adopters and experts.
  • Degree of difficulty. Cost takeout projects are relatively simple, but revenue and growth transformations are more complicated. The trick is aligning transformation projects with real wins for competitive advantage, compliance, which is always funded, and durable and repeatable results.

Using a methodology like RTI can give enterprises a way to prioritize transformation efforts and assess risk. Ultimately, enterprises are going to have to look at business transformation like a portfolio. Here's how a transformation project portfolio could be stacked and ranked. 

 

Innovation & Product-led Growth Tech Optimization Future of Work Data to Decisions New C-Suite AI ML Machine Learning LLMs Agentic AI Generative AI Analytics Automation B2B B2C CX EX Employee Experience HR HCM business Marketing SaaS PaaS IaaS Supply Chain Growth Cloud Digital Transformation Disruptive Technology eCommerce Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain CRM ERP Leadership finance Customer Service Content Management Collaboration M&A Enterprise Service Chief Information Officer Chief Technology Officer Chief Digital Officer Chief Data Officer Chief Analytics Officer Chief Information Security Officer Chief Executive Officer Chief Operating Officer

Ingram Micro's Sanjib Sahoo on futureproofing, AI, data and value chains

 

Ingram Micro Chief Digital Officer Sanjib Sahoo has spearheaded the technology distribution giant's digital transformation as well as the Ingram Micro Xvantage digital experience platform, which serves as the company's digital twin. However, transformation never ends.

I caught up with Sahoo, a Constellation Research Business Transformation 150 Hall of Famer, at Connected Enterprise 2023 to talk about future proofing and the year ahead.

Technologies to think about three- to five-years from now. Sahoo said harmonizing data and its aggregation will be the No. 1 theme in the years ahead. "Harmonization is a big challenge in large enterprises," said Sahoo. "Data is everywhere. Master data is an issue. How do you get real-time data harmonization and do change data capture from multiple systems and build the harmonization in the cloud?"

"No. 2 is definitely AI, but not for the sake of AI but using AI for experiences with the compute and storage it needs. We make AI agile intelligence. Right now, AI is still okay. How do we move to a more AI first approach that's extremely important? I think large language models will be much more popular in terms of customer, service, inquiries and everything."

Sahoo's No. 3 trend is "the journey from software to platforms." "I want to see much more orchestrations of ecosystems in the industry and connected ecosystems where AI and data blurs what's happening between different industries because you're serving a common customer," he said.

Also: Enterprise customer stories 2023: Everything we learned from technology buyers, CXOs about AI, data, CX, transformation | CXOs placing bets on AI, analytics, automation going into 2024

According to Sahoo, data and AI will enable a single pane of glass for customers. "I think we'll see more ecosystems going forward with cloud data and AI," he said.

Value chains. Sahoo's third trend plays into the value chain concept that in theory creates a flywheel across industries where every player and customer in the value chain benefits. Sahoo said the core value of value chains has to be customer involvement and a flywheel effect. "For example, if you buy a car, you should be able to tie it up with insurance and everything a customer needs," said Sahoo. "In my industry if we're selling hardware, we can use machine learning at the right point to offer a warranty. At that point it's easier for the customer. Every core competency in the flywheel makes it easier for the customer to do business with us."

Connective tissue in value chains. The theory behind value chains makes sense, but the incentives to get rivals to work together may be tricky. Sahoo said on the technology side, "the world is moving from pure API integrations to data integration with machine learning models." "You can take any format of data using machine learning, convert it to your format and build the joint integration," said Sahoo.

The connective tissue on the business side will revolve around bundles.

"You have to create more bundles of solutions. In our industry, an average solution has six products. No one buys one technology item in isolation," said Sahoo. "What is happening is that you have a core platform or offering and then you bring in bundles at the right price and take complexity out for the customer."

Challenges with value chains and making them operate smoothly. "The biggest challenge is integrating your systems and making it nimbler and more flexible," said Sahoo. "Systems of record, systems of engagement, systems of experience and systems of engagement have to be tied together and orchestrated. Then you can bring your own data set." Today, most enterprises are struggling to extract data from their enterprise resource planning systems and really build intelligence.

Buying or building these capabilities. Sahoo said whether enterprises build these ecosystems or buy into them will depend on engineering and product acumen. "What you have to do is customize your architecture and build it in a way that gives you the business model flexibility to pivot and scale your business," said Sahoo. "And you have to build the product your customers really need using a feedback loop." Bottom line: Whether you build or buy the flexibility of architecture is critical. 

Architecture lessons. Sahoo said Ingram Micro started with three layers. The first is the data engine and experience. "The data part is an intelligent mesh that replicates all the data from the different ERPs across the world. Then it stages the data on the fly and harmonizes it in the cloud," explained Sahoo.

"Then we move to build a lot of autonomous engines where we can communicate synchronous and asynchronous with the data. That gives us the flexibility to add agents that are completely segregated from the data layer. The agent to experience layer is completely headless where you can build in any experience such as mobile applications or desktop."

In 2023, Ingram Micro launched its new Xvantage Mobile Application on this architecture.

Sahoo added: "If you think about abstraction and every layer you can move without migrating or rationalizing the footprint as you transform."

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BT150 Interview: Cherokee Nation CIO Paula Starr on CX, ITIL and community values

Paula Starr is a Cherokee citizen leading technology delivery at the Cherokee Nation, the United States' largest federally recognized tribe. With a team that supports 4,000 employees across Cherokee reservation CIO Starr is in a unique position to deliver digital services while maintaining community values.

We caught up with Starr, a BT150 member, at Constellation Research's Connected Enterprise 2023 to talk shop. Here are the takeaways from our conversation.

Cherokee Nation's reach. Starr said the Cherokee Nation is the largest recognized tribe in the US with 460,000 people and a 7,000 square mile reservation. However, the Cherokee Nation's digital presence has to reach beyond the reservation and reach the population in 23 countries. Starr said:

"We have citizens who obviously live off of the reservation and all across the world. We are endeavoring to be able to reach every one of those citizens. If you wanted to interact with your government, it was a matter of coming into our headquarters in Tahlequah, Oklahoma, or making a phone call to us. There was no digital outreach. There were no digital applications or forms whatsoever."

"We had a whole group of citizens that we call our at large citizens who were going unserved and unconnected. We have really tried to increase our digital outreach."

Customer experience and service requires empathy. Starr, who is also Cherokee, said that 88% of her IT team is also Cherokee. That shared experience helps create better customer service. She said:

"So many of us have grown up needing services and we know what it's like to be vulnerable and to need help. We've gone to the health services and clinics. Many of us were born in Indian hospitals, including myself. So, it's very natural for us to have empathy and compassion for our citizens. But beyond that, we also tried to serve according to our Cherokee community values. There's a whole list of 21 values that are common to the Cherokee Nation and much of it overlaps with ITIL. We use a lot of ITIL best practices correlated together with community values."

ITIL and Cherokee values. Starr acknowledges that ITIL (Information Technology Infrastructure Library) best practices and Cherokee values may not seem like a fit at first, but they align in multiple areas. The correlation between Cherokee values and ITIL equates to almost built in design thinking. ITIL is a framework used to standardize the selection, planning, delivery, maintenance, and lifecycle of IT services. Starr explained:

"The first ITIL principle that you'll find is focus on value. The only way you can focus on value is if you understand who defines value. Customers, your stakeholders, or whoever is using the thing that you're producing defined that for you as the practitioner. You don't find that view in a lot of IT shops where practitioners think they absolutely define the value. To get to that understanding that we don't define value our customers do, we refer to one of the Cherokee community values which says hold one other sacred. It ties together because you are holding your customer sacred. And you understand that their missions are sacred. You're absolutely going to work with them to define value and ensure that you're serving what provides them value."

Priorities and projects. Starr said prioritizing projects is hard for the tribe due to its unique needs. Traditionally, the biggest battle was to maintain sovereignty with Oklahoma. That battle has never gone away, but a 2019 Supreme Court ruling meant that reservations were never dissolved and have jurisdiction of their lands. And that jurisdiction goes beyond public safety. Police, court and other departments all needed systems built quickly. "There's a whole lot of need there," said Starr.

There is also the IT behind keeping the Cherokee language alive as only 2,000 citizens out of nearly 500,000 speak it. Starr said:

"We are rapidly losing the Cherokee language. Of all of these things how do you prioritize one of those things over the other? One makes you inherently Cherokee and the other is public safety amidst all the other things to work on. We follow the lead of our departments and what they make a priority. We just work to digitize everything as fast as we can."

Cherokee Nation's digital borders. Starr said programs are grouped based on whether a citizen is on the reservation or outside of it. "There are programs to serve those in the reservation and others that open up. Having digital systems helps us out because when someone logs in, we know where they are coming from," said Starr. "We have contact information and know whether it is within our jurisdiction. We can also make a determination of what they qualify for."

Priorities for 2024. Starr said the biggest initiative for Cherokee Nation is wellness. The IT budget is funded by subsidiaries such as hospitality and federal contracting. She said:

"In the year ahead, we are really looking at Cherokee wellness. There's a big initiative across the entirety of Cherokee Nation government to look at wellness and say, We understand wellness is not just physical wellness, it is also mental. It is your connection to your culture. It is your connection to community. You know, there's a lot of talk here at this conference about loneliness, those kinds of things, how do we measure that across our citizenry and how do we help where help is needed? There’s going to be a big technological component to that."

There will also be plenty of system upgrades as well as generative AI. Starr said generative AI can help with services as well as security. A Cherokee Nation large language model could also be a possibility at some point.

Challenges and opportunities ahead. Starr said AI has the potential to upgrade the level of services provided. There's also an opportunity to education IT staff with AI. Those AI opportunities also present challenges. The key thing is keeping up with AI in the public sector and continually teaching the team. Starr concluded:

"I also feel like there's an advantage right now to those who can just learn the fastest. I think that we've got a staff that's highly engaged and has high levels of capability that can learn a lot very quickly. So, I'm really excited about what we're able to do.

"The challenges for us are that it's hard for public sector to keep up in the age of AI, There's so much opportunity but for public sector, it's very hard. I worry about keeping up across all Indian country, to be honest. How do we meet this age of technological advancement and how do we help our friends across the other tribes get there as well?"

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CXOs placing bets on AI, analytics, automation going into 2024

Business technology decision makers are optimistic about 2024 and are plotting investments in generative AI, analytics and automation, according to Constellation Research's second half 2023 CxO Business Confidence Survey.

The report, based on 43 C-level executives, found that enterprise decision makers are banking on emerging technologies to bolster revenue, profit and employment. An excerpt from the report:

"Buy-side CxOs are balancing the pressure to invest in the AI space with the need for certainty about the reliability of these new tools. In turn, enterprise tech vendors recognize and predict strong revenue potential in the generative AI space but currently are in the waiting phase of tangible selling and the client's desire to see tangible return on investment (ROI)."

Also see: Enterprise technology customer stories 2023: Everything we learned from CXOs about AI, data, CX, transformation

How that waiting game between vendors and technology buyers remains to be seen, but there is CxO optimism headed into 2024. Fifty-one percent of respondents said they experienced a better business climate in 2023 relative to 2022. In the first half, only 33% of CxOs said the business climate was better.

Other key items to note:

  • 44% of respondents said innovation was their organization's most important business issue, followed by labor availability and quality at 42% and consumer demand at 28%.

  • 33% of technology budgets are going to revenue and growth investments with 26% going to efficiency efforts. Strategic differentiation received 20% of budgets.
  • 40% said IT budgets will be flat with 21% seeing increases of 0 to 5%.
  • AI, analytics, ChatGPT, Automation and cloud were cited as priorities among emerging technologies.
  • AWS and Microsoft were the two top of mind software vendors for CxOs followed by Salesforce and Workday.
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Low-Code and Portals Webinar with Neptune Software

Watch a webinar between CR analyst Holger Mueller and Neptune Software CSO Mattias Steiner about the winning combination of digitalizing low-code and portals for quick ROI.

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Constellation Cloud Convos: Episode 2

The following video is the second episode in a series of conversations about cloud technology between Holger Mueller, Constellation VP & Principal Analyst, and Thomas Saueressig, SAP Executive Board Member. In this segment, Thomas answers the question, "What matters in cloud architecture?"

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Constellation Cloud Convos: Episode 1

The following video is the first episode in a series of conversations about cloud technology between Holger Mueller, Constellation VP & Principal Analyst, and Thomas Saueressig, SAP Executive Board Member. In this segment, Thomas answers the question, "What is the cloud all about?"

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Enterprise technology customer success stories: Everything we learned from CXOs about AI, data, CX, transformation

Enterprise technology customers in 2023 hit a few common themes that revolved around data strategy, setting their companies up for generative AI applications, transformation, sustainability, customer experience and continuous optimization to pay for new initiatives.

Here’s a look at the big lessons from 2023 (Constellation Insights PDF library).

Without data strategy you don’t have an artificial intelligence strategy. Those enterprises with a strong data game are poised to lead in AI and generative AI. "We declared five years ago that data and AI was going to be fundamental," said Intuit CEO Sasan Goodarzi, speaking at a recent investor conference. "And everything starts with data." See: Intuit’s bets on data, AI, AWS pay off ahead of generative AI transformation

"We believe that AI and generative AI will transform healthcare," said CVS Health CEO Karen Lynch. "We're applying technology, data and analytics to every single aspect of our business. The effects will be positive and profound." See: CVS Health’s transformation rides on data, AI and customer experiences

JPMorgan Chase CEO Jamie Dimon said: "The management team is getting better and better at using data to do a better job of reducing errors, to serve clients better and to have a salesperson with co-pilots. We simply have to do it."

More on how data drives transformation.

Management and business alignment matters. CXOs outlined their approaches to management, aligning to the business and managing through tech debt.

  • BT150 interview: Wayfair CTO Fiona Tan on transformation, business alignment and paying down tech debt"My leadership team is there to ensure we have the right platform and infrastructure from a technology perspective to enable us to grow in a flexible, scalable, lean way."
  • BT150 Interview: Equifax's Manish Limaye on data architecture, transformation: "The ability to bring multiple datasets together seamlessly is an essential element of the architecture. Our transformation not only focused on the run of the mill cloud work, but really reimagining how we will bring the data together in our own data fabric. Prior to the cloud, if we have 10 data sets, they are sitting independently, and we join them together. It's a painful exercise. Now with the data fabric we built, we can tap the data at any point in the journey per the legal, regulatory and contractual obligations and really give deep insight to the customer. These are the business drivers behind every technical decision we make."

More:

Transformation remains front and center (and is never complete). While the definition and focus of transformation evolves, the overall theme of future proofing remains.

  • Walmart, Target highlight intersection of supply chain, customer experience Target COO John Mulligan said: "While there are many different ways our team is working to gain efficiencies and deliver value to the business, all of our projects have some things in common. First and foremost, they're all designed and implemented with a focus on our guest and continuing to build their engagement with Target. In keeping with that guest focus, we design processes and deploy technology and automation as a way to highlight the human element in our business rather than minimizing it."

More:

Sustainability is good business. Nate Melby, CIO of Dairyland Power, said sustainability, efficiency and transformation overlap.

"Sustainability is one of our largest goals. It intersects with technology, efficiency, and the data that we need to effectively manage the grid. Sustainability for us is also about the sustainability of our utility for the people that need us. We provide power in rural areas. We were created to solve the quality-of-life issue where it couldn't be profitable to provide power to rural areas. Our whole mission is to provide power at the lowest cost possible as efficiently and into the future with diverse resources. It's evolving as our industry has been changing, and we're seeing this energy transition happen."

 

It’s always about optimization and costs (and that includes generative AI).

John Stankey, AT&T CEO, said generative AI is driving cost savings at the company. He said during the company's third quarter earnings call: "While we're still in the very early stages of Generative AI, we're already seeing tangible AI-driven improvements in productivity and cost savings. Measurable progress has been made with lowering customer support costs, unlocking software development efficiencies, and improving our network design effectiveness. We expect these capabilities to play a key role in our continued efforts to achieve our future cost savings objectives." See: Enterprises seeing savings, productivity gains from generative AI

But it’s also about innovation (and of course generative AI). Multiple companies are looking to large language models that can be customized with proprietary knowledge.

Domino's Pizza CEO Russell Weiner said: "As you look back in the history of Domino's, we certainly have built more things internally when it comes to competitive points of difference. I think we've always said, you can't outsource a competitive point of difference. There's going to be a competitive point of difference with generative AI solutions, and we think we've got the resources and the pizza expertise internally." See: Domino's Pizza eyes generative AI, Microsoft and Uber tech to drive growth

 

Cybersecurity is front and center courtesy of new disclosure rules. In 2023, enterprises started disclosing security incidents regularly, due to Securities and Exchange Commission requirements.

And customer experiences matter. Enterprise initiatives revolved around data, generative AI, optimization and other themes, but the common thread between all of those projects were digital and customer experiences. The takeaway: Every company needs to provide good experience. Research: Connecting Experiences From Employees to Customers

Cenlar's Chief Digital Officer Josh Reicher on automation, AI and staying ahead

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