9-18-2017
By Peter High, published on Forbes
Under Armour used to be known primarily for its moisture-wicking t-shirts. In the 21 years since the company was established in founder and CEO Kevin Plank’s grandmother’s basement, the company has expanded its product line extensively to include hats, pants, shoes, gloves, bags, and the like.
In recent years, the company has made three strategic acquisitions that will continue to reshape the company. With the acquisitions of MapMyFitness, EndoMondo, and MyFitnessPal, the company has become the largest digital health and fitness community in the world. I recently spoke with Under Armour’s Chief Technology Officer Paul Fipps, who leads this digital transformation of the company. He sees the future as a combination of the physical and the digital, where one’s clothing and accessories provide better information on heart rates and sleep quality.
Peter High: Under Armour calls itself a digital health and fitness community. Please explain that concept and the role you play as Chief Technology Officer.
Paul Fipps: People move fast in the digital world. They get more information, have more choice, and find more deals. A downside to all of this information is people are bombarded with messages from companies that do not understand them. This happens everywhere in the digital world: on our mobile platforms, social platforms, and on the web. At Under Armour, we believe you need to approach consumers like a hotel concierge who deeply knows his or her guests. A concierge knows all of your preferences and the context. You have an incredible experience because it is highly personalized and memorable. At Under Armour, this experience means creating products that are relevant to our customers on both a personal and community level.
Another thing we recognize is that people spend a lot of time on their smartphones; they are on their smartphones as much as they watch TV. Smartphones are where consumers expect you to meet them. We recently acquired three companies that help us understand our athletes better and make it easier for us to connect with them. Our acquisitions of MapMyFitness, EndoMondo, and MyFitnessPal made us the largest digital health and fitness community in the world. These apps produce a vast amount of data; 215 million people have downloaded one of our apps. People tell us how much they sleep, how much they eat, how much they workout, and the types of workouts they do. We also get data from brand interactions, which are when someone comes into our retail stores, visits our e-commerce site, or interacts with us in some way that we can track. By combining the data from the apps with the brand interaction data, we can understand buying decisions. More importantly, we understand the behavior behind the buying decisions. That has been a huge success for us. We are creating a new digital experience for our athletes by combining connected fitness and our e-commerce engine and our global technology platform. It is game changing for us and our athletes. That is my primary role as Chief Technology Officer of Under Armour.
High: You provided a great overview of where things stand now and customers’ expectations for speed, customization, and transparency. Can you provide an example?
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09/18/17
An estimated 250 million children around the world cannot read, write, or demonstrate basic arithmetic skills. UNESCO estimates that the world will need 1.6 million more teachers globally, a number set to double by 2030. Enter Elon Musk.
Musk is famous for being the face of such organizations as Tesla and SpaceX. He is also the co-chairman of the AI research company OpenAI and the CEO of neurotechnology company Neuralink, among other companies that he is involved with. More recently, he provided $15 million to the Global Learning XPRIZE. The goal is to develop methods to teach the 250 million children who do not have access to primary or secondary education the means to teach themselves to read, write, and do math within 15 months.
Today, XPRIZE announced the five finalists advancing in the Global Learning XPRIZE and awarded each finalist a $1M milestone prize. XPRIZE awarded each finalist for the open source, cutting-edge learning software they have developed for the competition. The five finalist teams will begin field testing their education technology solutions this November in Tanzania.
“Universal access to education is a major priority for XPRIZE, and we are proud to celebrate the change-making teams making impressive strides to ensure every single child has the opportunity to take learning into her own hands,” said Marcus Shingles, CEO of XPRIZE Foundation. “The leading solutions born from this competition could provide the key to unlocking literacy for children most in need, giving them access to an education they otherwise wouldn’t have.”
Pegasystems has experienced tremendous success in recent years. The stock is up more than 100 percent in the past year, and enterprises are increasingly adopting the company’s software for customer engagement and operational excellence. It is tempting to think of the company as a start-up, perhaps run by a 20-something entrepreneur in the Bay Area. In fact, the Cambridge, Massachusetts-based company was founded by 61 year old Alan Trefler in 1983.
In many ways, Pegasystems has bucked the trend of a lot of software companies. Trefler did not accept venture capital early in the company’s tenure, and in so doing, he was able to dictate the pace of growth and mature the company in a way that has been sustainable. Likewise, though the company has been on the target of acquisition planning for several companies, including Salesforce, Trefler considers having an “exit strategy” as anathema to growing a successful company for the long term.
Trefler recently wrote a book, “Build for Change,” which highlights his philosophy and his advice for company’s, who he believes need to evolve with customers as the latter’s needs change or face extinction. He shares insights on all of the above and more in my interview.
Peter High: Alan, you have been in the software industry for multiple decades. You founded Pegasystems, in 1983. During your long tenure as a founder CEO in the software industry, you have seen many trends and competitors come and go. In fact, your own competitive set has evolved from your origins as a case management solution provider to a customer relationship management and business process management software company. Please share your perspective on how the software industry has evolved and where it is going.
Alan Trefler: Prior to starting Pegasystems, I worked for large New York banks as a systems integrator. Computers were getting faster, but we were still working in ways that seemed both grossly inefficient and not amenable to real customer success and happiness. I knew there had to be a better way to handle certain types of customer engagement and customer service issues. We came up with the idea of creating an infrastructure for managing work. Sometimes that is referred to as case management, sometimes it is referred to as business process management. I like the term digital process automation, which Forrester recently came out with. Digital process automation captures how companies become digital, connect to their customers, connect across channels, and bring together those intelligences, along with automation capabilities, into their software.
In the last several years, we have developed a CRM suite for Sales, Service, and Marketing that is built in digital process automation technology. It gives our customers an out-of-the-box application for service and has the power to execute effectively on the environments they want to, whether that is a Pega Cloud we service for our clients or a private cloud they might use in the future.
High: Pegasystems operates in a thriving field. How do you differentiate your organization?
09/11/17
When Cynthia Stoddard joined Adobe as chief information officer in June of 2016, she admits she joined an information technology division that was running reasonably well. She is a good judge of such things, having been a CIO multiple times over, most recently at NetApp for over four years. At Adobe, she joined a company in the throes of transforming itself into a cloud company, and an IT department that operated as “customer zero” for the company’s products. She took the game plan that was in place and added her own aspects to the plan.
She indicates in my interview with her that the first step of the IT transformation was making back-office systems real-time, responsive and highly available. Next, she facilitated a customer-experience-centric strategy for IT. A major component of that was leveraging the seven characteristics of the cloud. She explains all of the above while reflecting on her own career in IT, and the steps she has taken to encourage other women to walk in her footsteps, among other topics covered.
Peter High: You have been the CIO for about a year at Adobe, an organization that has been transforming itself into a cloud business. Please provide a brief overview of this journey and the role IT plays.
Cynthia Stoddard: Adobe began the transition to software as a service, away from box software, a number of years ago. It has been a successful transformation and we continue to be leaders in the market. We have three clouds: Document Cloud, Creative Cloud, and Experience Cloud. I am proud to be a part of the organization and to have a great IT team that enables the business, the organization’s journey, and the tremendous amount of growth Adobe has achieved. Since IT was solid when I joined the organization, I have been able to focus my strategy on the future.
Adobe did a fantastic job when they moved from box software to software as a service. When you enter the real-time online software as a service world, all of the back-office systems that were previously hidden, are exposed to the world.
High: How did the Adobe IT team manage that?
9/05/2017
The marriage between chief information officers and venture capital firms is a logical one, as CIOs are often the consumers of the enterprise portfolios of the venture community. There is a small but growing list of CIOs who are getting more involved in venture, including venture arms within their enterprises.
Eash Sundaram is one of those CIOs. In addition to being the Chief Digital and Technology Officer at JetBlue, he is also the Chair of JetBlue Technology Ventures. With this combination of roles, Sundaram is at the center of a tremendous amount of innovation through creative use of information and technology and through the digital transformation he has helped usher in. He also leads an innovation lab. In this interview, he describes his various areas of responsibility, the interplay between these functions, and reasons why he believes more CIOs will take on a wider array of responsibilities, as he has, among other topics.
Peter High: Please describe your purview as the Chief Digital and Technology Officer at JetBlue and the Chair of JetBlue Technology Ventures.
Eash Sundaram: I have three distinct functions. First, I oversee Digital, which encompasses all of e-commerce. Second, the core technology functions report to me. Lastly, I have oversight of JetBlue Technology Ventures, which is a wholly owned subsidiary of JetBlue that was founded in early 2016. JetBlue Technology Ventures invests in travel, hospitality, and transportation verticals that will enable, through technology, the next chapter of JetBlue’s innovation.
High: From our past conversations, I know that you are working on the next generation of the customer experience. What are some of the things you are developing?
Sundaram: From its founding days, JetBlue’s mission has been “to bring humanity back to air travel.” Our latest vision of inspiring humanity touches every part of the travel experience. For JetBlue, the core of the customer experience starts with the mission of being personal, helpful, and simple. Our mission is tied to two things JetBlue takes tremendous pride in innovation and a culture of hospitality. For example, we are exploring the use of biometrics for improving the travel experience. Working with Customs and Border Protection and our partners at SITA, we have launched a biometric boarding process for select international flights at Boston Logan International Airport. We have seen some early success. The traditional process at a gate is people come in, scan their boarding pass, and wait in lanes. Biometrics improves the process because now people quickly have their picture taken and walk on through; all of the transactions behind the scenes are automated. Not only is this simpler for customers, but it also lets crewmembers focus on meaningful interactions with their customers, instead of transactions.
High: You are the chairman of JetBlue Technology Ventures, which is headquartered in Silicon Valley. What was your rationale for that location?
8-28-2017
Jeff Pashalides is the Head of Corporate at Sequoia Capital, one of the most prestigious venture capital firms in the world. As such, he operates at the intersection between those who are shaping the technology landscape (investors and entrepreneurs) and the CEOs, COOs, and CIOs who would invest in those companies or who would articulate needs unmet by current technologies. As such, he has an unusually strong network and an unusually deep reservoir of insights into the future of technology.
Pashalides has had entrepreneurial experiences of his own, having run Finance and Corporate Development at TrueCar. He also led Blackstone’s software as a service advisory practice for a time.
In this interview, he provides insights into the symbiotic relationship between practitioners, the venture community, and the founding community, how to engage this ecosystem more effectively, and the biggest pain points and opportunities for the executives for whom he has served as a guide on all things Silicon Valley.
ADP has been referred to as one of the original cloud companies, as it has long run other companies’ payroll off-premises as a service. Now, the $12 billion human capital management company has become colossus in the industry. It does not lack for competition, however, both among traditional players like Paychex, and among digital native companies like Workday and Zenefits. ADP still enjoys the advantages of scale, producing one in every six paychecks for all non-governmental employees in the United States.
Stuart Sackman has spent the past 25 years at ADP, running various businesses within the company. He has spent nearly two and a half years running Global Product and Technology for the company. In that role, he has enormous influence over the company’s products, but also the methods of delivering them to an increasingly technology savvy customer base.
Sackman also leads an innovation lab that has been branded Lifion. The lab was founded in the Chelsea neighborhood of Manhattan, 15 miles east of the company’s Roseland, New Jersey headquarters. Sackman explains the rationale behind the branding of the division, the advantages of its geography, its path forward, and a variety of other topics in this interview.
08/14/2017
As a gifted athlete who was also six feet and five inches tall, all Fortinet founder and CEO Ken Xie wanted to do was to become a professional volleyball player in his native China when he grew up. His parents who were academics at Tsinghua University had other plans for him: to get a PhD at Stanford University and then to return to China to become an academic like them. Xie’s life was transformed at Stanford, as he met fellow students who aspired to start businesses. He notes that the entrepreneurial culture was not something he had ever experienced growing up in China.
He started a company while he was a student to help small companies get online and do so securely. That company would become SIS. He founded a second company, NetScreen, which he would eventually sell to Juniper for $4 billion.
As Xie defines it, these two companies represented the first generation of network security. In 2000, he founded Fortinet to offer the next generation security platform. As the company has grown, it has evolved along with the threat landscape. Fortinet now boasts revenue in excess of $1 billion. In this interview, Xie describes his entrepreneurial path, the culture of innovation that he has fostered at Fortinet, the advantages of having started businesses with his brother Michael Xie, and a variety of other topics.
Peter High: Please describe Fortinet’s business.
Ken Xie: Fortinet was founded in 2000 with the goal of making an impactful change in the network security space. Fortinet is our third company in the same space. Our previous two companies, NetScreen and SIS, dealt with the first generation of network security. However, starting in 2000, this was no longer good enough. It is like air travel, where with the first generation, all you needed was a ticket to get on the airplane, but today, they x-ray your luggage. It is the same thing with the second generation of network security, we need to look inside the connection because most malware comes from permitted connections, whether it comes from the user, the partner, the customer, or from inside. That is how Fortinet started. Seventeen years later, we are nearly 5,000 people strong with over $1 billion in revenue, and growing quickly.
High: You work in a field where you must think proactively, but also where an element of reactiveness is necessary because you need to adapt as the threat landscape evolves. How do you and the company remain current?
08/07/2017
Julia Davis began her career in information technology at the Air Force. She had attended college on a ROTC scholarship, and worked as a software engineer, rising to the rank of captain in the process. For the past 16 years, Davis has been a chief information officer beginning as a divisional CIO at General Electric and eventually becoming CIO of American Safety Insurance a decade ago. For the past four years, she has been the CIO of AFLAC. That depth and diversity of experience has served her well as she has helped transform that $22 billion supplemental health and life insurance company.
AFLAC is based in Columbus, Georgia, a location that can be challenging for hiring millennials. Recognizing that Atlanta is in driving distance, and a more attractive spot for recent college graduates to join, she has developed a robust intern program while also developing an innovation lab of sorts in the company’s Atlanta satellite office. She has also used the opportunity of rethinking that office in creating an “office of the future” concept there. She describes all of the above and more in this interview.
Peter High: Julia, you have been the Chief Information Officer of Aflac for four years. Before that, you were with American Safety Insurance for almost six years. Based on your decade of experience, what role does technology play in the insurance market, particularly from a customer experience perspective and what are some of the strategic ways your IT team brings value to Aflac?
Julia Davis: Insurance was one of the last holdouts to recognize the need to approach the customer in a different way. Historically, we relied heavily on our agent channels and direct customer interaction, which was either face-to-face or phone-to-phone. However, customers began to want to interact with us differently. Property & casualty was the first company in the insurance sector to embrace automation and to leverage technology to expand the opportunities for the customer. Currently, the health and life space is exploring how technology can improve the customer experience. We recognize that folks expect an Amazon-like experience; they want an easy way to do business with us. For Aflac, this means our customers expect their claims to be paid quickly, and want it to happen with limited direct interaction with a person. This is the basis of our One Day Pay initiative. Finding the best way to deliver claim money quickly to our clients drives our technology investment strategy.
High: From our past conversations, I know you put a lot of thought into developing your team. Please describe the apprenticeship program you developed at Aflac and the benefits it has provided the organization.
7/31/2017
A retired four-star general, Stanley McChrystal is the former commander of US and International Security Assistance Forces (ISAF) Afghanistan and the former commander of the nation’s premier military counter-terrorism force, Joint Special Operations Command (JSOC). He is best known for developing and implementing a comprehensive counterinsurgency strategy in Afghanistan, and for creating a cohesive counter-terrorism organization that revolutionized the interagency operating culture. He will be the first to admit that his retirement did not transpire as planned, but the impact that he has had as a private citizen has also been profound.
In 2001, McChrystal founded the McChrystal Group, a consultancy that provides “innovative leadership solutions to American businesses in order to help them transform and succeed in challenging, dynamic environments,” as his site notes. In that role, he has spent considerable time with CEOs across the private sector, helping them understand that the changes he enacted in the military are quite similar to the changes necessary in the business world: silos need to be eliminated, information must flow more freely across the enterprise, ecosystems must be curated carefully and cared for, and companies must strive to innovate while remaining cognizant of an ever expanding threat landscape.
In 2013, McChrystal published his memoir, My Share of the Task, detailing his years in the military, and in 2015, he published Team of Teams: New Rules of Engagement for a Complex World, describing how the lessons of his military experience apply more broadly. Both books were New York Times bestsellers. He has also joined the boards of JetBlue and Navistar International.
McChrystal describes all of the above and more in this far ranging interview.
