by Peter High, published on Forbes
9-29-15
For the past 18 years, Mark Brewer has been the CIO of Seagate the $14 billion provider of electronic data storage products. That is an unusually long tenure, and it means that he has been present for a dramatic evolution, as the company has gone from a manufacturer of disk drives to a cloud-centric company, as well. When Brewer began at Seagate, there were 150 companies making disk drives. Now Seagate is among the last in the field. In that time, the company has diversified into solid state products, cloud services and technology, with plans to diversify further. In addition to traditional IT functions, Brewer also has responsibility for manufacturing execution systems in the factories, which is typically under the purview of Engineering or Operations functions.
(To listen to an unabridged audio version of this interview, please visit this link . To read future articles like this one, please click the “Follow” link to the upper left of this page.)
Peter High: I thought we would begin with a description of Seagate’s business. No doubt many of our listeners would know of Seagate, but would love to hear in your own world, especially as a veteran of the organization, what it is that Seagate does and also your role in IT.
Mark Brewer: Seagate Technology is one of the long-term tech companies. We have been making disk drives for a long time. There used to be hundred fifty companies doing that; it is down to just a handful now. So we are in the traditional disk drive space. We also have solid state products, some cloud services and technology that we are now selling, and so we are diversifying a little bit. But we are essentially located in the storage space. That is who we are at Seagate. I am the CIO here. I have been the CIO for a long time. I have the traditional IT functions and then I also have responsibility for the manufacturing execution systems in our factories, which typically is in engineering or operations, but here it is in IT.
High: And speaking of your role as CIO, you have an unusually long tenure as the IT lead for Seagate—nearly 18 years—which is really extraordinary at a time when the average tenure is still between four and five years for Chief Information Officers. One of the things that really intrigued me as I thought about that, Mark, is no doubt you have introduced—perhaps even your team built– technologies that you have had to replace; that you have had to transition from the pre-cloud computing period to now more of a software-as-a-service type model solution. You became CIO at a time when offshoring was not necessarily as much a lever that IT leaders were choosing to pull. Now that is much more part of the bailiwick of IT, and again a lever IT leaders choose to pull, and in fact create an IT operation that is more efficient, just to mention a couple of trends. I wonder if you can talk a little bit about that evolution over the 18 years, and how IT has changed and how IT specifically at Seagate has.
Brewer: It is interesting to be at a place and see things come in and go out, and we have definitely been here long enough to do that. I tell people that fundamentally I am responsible for everything: everything that is a problem is my fault because I have been here so long. We have had large turnovers in technology. We certainly went through the Y2K era here, and then the dot com era, and then all the supply chain optimization that people did for a while, and then the downturns in 2008/2009. So it has been an interesting journey along the way.
We have done all of the things you mentioned. We have big cloud plays with OpenStack, and we use Google’s applications and Salesforce in the cloud. We have done offshoring. We have big operations in Asia. We have a bit of an advantage in that a lot of our footprint is sitting in Asia, so I have a majority of the IT staff sitting in Malaysia and Thailand and China and Singapore. So we are a global organization IT-wise and leverage really great talent around the world to do the things that we have to do. And then we have third party partners in India and elsewhere that we use at times for projects and for support. We have gone through that whole role. One of the dangers of being a place so long is that you could have made a decision seven or eight years ago on a particular item and in your mind that decision has been made, but the world has changed in seven or eight years, and you need to make a different decision. I think that is one of the risks I have, and I talk about it here, and I talk about it with my staff and with others, that I have to be careful, and my staff has to be careful, that we are not locked into a decision that we made years ago just because I have been here a long time and a some of my IT players have been here long time.
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9-28-15
Mike Capone is the chief operating officer of the largest technology company founded in New York by market capitalization – Medidata Solutions, which is a $400 million revenue company that provides cloud-based solutions for life sciences companies. Though new to the industry when he joined the company a year ago, he joined with a deep background in technology, having been the first ever Global CIO of ADP, in product development, having run that function at the global human capital management company. He also has a passion for health issues both personally and professionally, both of which led him to Medidata Solutions, where, as he notes in this interview, he felt he could change the world. This opportunity also put him squarely in the middle of the growing technology scene in New York City.
(This is the 25th article in the “Beyond CIO” series. To read past interviews with executives at Biogen, American Express, Marsh & McLennan, Aetna, Allstate, and Waste Management, please click this link. To read future articles in the series, please click the “Follow” link above and to the left.)
Peter High: Please describe Medidata Solutions’ business.
Mike Capone: Medidata Solutions is the world’s leading provider of cloud software for clinical trials. More than half the clinical trials in the world are powered by Medidata’s platform today.The whole value proposition for Medidata is that we make clinical trials run better.
In today’s world, as you can imagine, there are diseases waiting for cures. There are people with rare diseases who really do not have a lot of hope unless we can come up with new compounds and solutions to help cure these diseases. We help biotech companies and pharmaceutical companies bring drugs to market faster, ensure their trials are run the correct way, and provide for a solution to help them get better submissions to the FDA so there are no data quality problems with things that could derail it.
Conversely, we actually help bad drugs fail faster. You do not want to keep making investments in compounds that are not going to make it. Our technology helps pharmaceutical companies get better insight into how their drugs perform in a trial and make faster decisions.
High: Can you talk about the role that information and data analytics play in all of this?
Capone: Like most companies, we started out as a transaction company, a data capture for clinical trials. We made a horrible paper process a lot better. As the technology has gotten better, as our platform has picked up more clients and we have gotten more and more information, we have transformed into much more of an analytics company. So now, not only are we able to help facilitate clinical trials by making sure that all of the data capture and all of the technology is there to make the trial run smoothly. Now we are able to build out analytics to actually support better decision making in trials, as well as benchmark.
Peter High
9-17-2015
Excerpt from the Article:
Allianz Global Assistance is a leader in assistance services, travel insurance and medical health insurance for travelers or ex-patriots. “Assistance” refers to roadside assistance, but it also refers to repatriation services for people who have issues while they are traveling. As Chief Operating Officer of the Americas, Jay Levine notes in this interview with CIO Insight contributor, Peter High, how the assistance label is so meaningful to the company’s mission.
Levine has been a CIO several times over, and joined Allianz Global Assistance as CIO of the Americas before rising to his current role. Levine reflects on his journey and the lessons it might provide on those who might follow in his footsteps.
CIO Insight: Can you talk a bit about your responsibility as COO? What is under your purview, Jay?
Jay Levine: I am the Chief Operations Officer for the Americas zone, which includes Canada, Mexico, the U.S., and I share responsibility for Brazil. These zones all have standalone business units serving the products I just described. There are a number of areas of interest starting with organizational management, serving as a PMO. We are responsible for the claims area, the assistance area and travel services, which includes the call center. We also have a financial services group where we do TPA services for specialty products that we provide on behalf of a credit card company. Finally, I oversee administrative services to do staff planning, reporting analytics and budgeting across the business units for which I am accountable.
CIO Insight: Talk about the process transitioning from CIO to COO, especially how the opportunity presented itself to you and what it is about your experiences as CIO that made you ready for this set of responsibilities.
Levine: I certainly aspired to move beyond the CIO role over the last 10 years. I came up through the software ranks as you mentioned as CTO. The more mature I got into my career, the more involvement with the business beyond the technology became more interesting to me. So it was an aspiration of mine and I was unsure whether I would fulfill it as I moved into the last third of my career.
One of my colleagues, the COO, moved out of the company to a great opportunity, at a time when I was fulfilling both the zone CIO role and overseeing a business transformation in Paris. The former COO and I shared the same boss, so when this happened, I threw my hat into the ring. Obviously my boss felt I was qualified and I had attributes he wanted to see more of in the operations area. It is such a technology-driven operation that he was looking for someone with a technology background. I knew the infrastructure, the domain from a business point of view and I had a burning desire to be closer to customers.
To read the remainder of the article, please visit CIO Insight
9-21-15
When I last spoke with Andi Karaboutis a little over a year ago, she was the CIO of Dell. Shortly after we spoke, she moved to $10 billion, Cambridge, Massachusetts-based biotechnology firm, Biogen as the Executive Vice President of Technology and Business Solutions, a role definitively above the CIO role. She also joined the board of Advance Auto Parts, the $10 billion provider of automotive aftermarket parts based in Roanoke, Virginia.
I was interested to learn how Karaboutis managed the transition to a new, dynamic industry, to a broader set of responsibilities, what those responsibilities entailed, and how she pursued the path to board membership. Exemplifying the best characteristics of curious and humble autodidact, Karaboutis realized that she needed to learn the language of biotechnology so that she could speak lucidly with her new colleagues about the opportunities they hoped to seize and the issues they hoped to resolve. She also recognized that with her growing responsibilities coupled with her being on the audit committee of the Advance Auto Parts board both required a greater familiarity with finance, so she took a course on the topic. This training has served her well, as she notes herein, and has allowed her to achieve level of what she refers to as “professional athleticism.”
Our conversation also covered technical innovation in the biotechnology setting, including the topic of the “Internet of Me.”
(To listen to an unabridged audio version of this interview, please click this link. This is the 23rd interview in the CIO’s First 100 Days series, and the 14th interview in the Board Level CIO series. To read past interviews with executives in either of these series, click this link for the CIO’s First 100 Days, and this link for the Board Level CIO. To read future articles in either series, please click the “Follow” link to the upper left part of this page.)
Peter High: You are the Executive Vice President of Technology and Business Solutions at Biogen. Could you take a moment to describe the areas under your purview in that role?
Andi Karaboutis: I have been in the role for about a year. It is made up of several areas, but the key three areas are around the core technology of IT and enterprise IT that you find in most companies, which is technology for the capabilities of the company – everything to operate the company from telecommunications all the way through to systems of records and systems of engagement.
The second big component is around scientific computing, which you will find in biotechnology/bio-pharma companies, and it is computing that will help us with more insights, more biological targets, and marrying data sets together that are interesting to our scientists. For example, if you think about genomics and genetics, longitudinal data, phenotypical data and things like that, to help with what is a very big goal now in the life sciences/healthcare industry around personalized medicine and better targeting molecules to help with therapeutics. So it is a very focus, in a nutshell, Peter.
The third component is to meaningfully disrupt the business with technology very akin to some of the internal capabilities, but, again, focused around the external environment of our business. And these could be wearables, consumables, ingestables, and things like that. So there is Internet of Things, “Internet of Me” as we call it here where, again back to personalized medicine, but the second component focusing heavily on data and analytics and informatics and scientific computing. There are a few other components of which I am responsible for, but those are the key three areas of the role. So, as you can see, it is beyond the internal enterprise IT capabilities.
High: Having gotten to know, advise, study, and interview a great number of people now who have made this transition from CIO to something definitively beyond CIO, this is the first example, that I know of, of somebody who went from CIO within one company to a beyond-CIO set of responsibilities at a new company and a new industry. How did it occur to you and to Biogen to pursue this broader set of responsibilities in this new organization and in a new industry?
Karaboutis: Great question. Interestingly enough, Biogen’s CEO, George Scangos, and the board had gone out to Silicon Valley and one of the board meetings that we do every year is beyond typical board material (though that is done at every meeting). They looked at some of the areas that can help take Biogen into the next generation and help disrupt the business in a positive way, as well as potentially the whole biotech industry. They recognized that technology is not a long pole in the tent, but something that has progressed to the point where it can help this industry through some of the data, Big Data, analytics, and technology as we talked about earlier. And that is where they said we need a senior leader to come in and go beyond the CIO role and try to disrupt, again, in the three ways that I talked about before. So it is to the credit of the vision of the CEO and the board that the role was created. Finding somebody outside of biotech was viewed as an opportunity to bring someone in, and obviously, being from Dell, I brought technology with me from a capability perspective of the industry, to bring somebody in with different thinking, fresh thinking, etc., and help be unencumbered in how do we apply certain capabilities to this business.
9-15-15
David Guzman has held the top IT role at a number of major companies including K-Mart, eBay Enterprise, Acxiom, and Owens & Minor. For the last four years, he has been the CIO of HD Smith, a multi-billion pharmaceutical products distribution and services business based in Springfield, Illinois. During that time, he has simplified the way in which IT does business, employing cloud technologies to simplify the infrastructure and introducing process excellence in the form of Lean Six Sigma and ITIL, for example. He has introduced a number of analytics and mobile solutions that have changed employee and customer experience, and he intends to have more of his team’s time spent on externally focused innovation. He covers all of the above and more with me in this interview.
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Peter High: For those who may be less familiar with your organization, could you talk a bit about the business H.D. Smith is in?
David Guzman: H.D. Smith is a pharmaceutical products distribution and services business based in Springfield, Illinois. We are a private company and do not publish financials, but we would be in the vicinity of the Fortune 500 company if we were a public company. We have been around for over 60 years since 1954 and our scope is the entire United States. Our key customers are the community pharmacies, as opposed to the big retail chains, as well as hospitals and institutions. Our suppliers in the health care supply chain are a big part of our customer base as well.
High: What role do you see IT playing in this business? I know this is an industry you know well from multiple turns in it in different areas, among other industries you have been a part of. Can you talk a bit about the role you see IT playing?
Guzman: Our senior leadership team has a very enlightened view of the role of IT. As the CIO, I am a member of the executive committee, the top senior leadership of the company. We meet once a month for a full day as a leadership team. We also have an operating council that runs the day to day aspects of the business, and I am part of that as well, which also meets once a month for a full day. I make presentations to our board on key issues and I am a part of the small core of people that are building the strategy of the company as well. So IT is seen as an enabler of the company’s strategy and a key partner in delivering that strategy.
9-14-15
For years, people have predicted the demise of the chief information officer role. First, it was because it was deemed to be a back-water support organization, and ironically of late it has been predicted because it has become so strategic to all parts of the enterprise that division and business unit leaders would simply take over the function. When Puneet Bhasin was promoted above the CIO role in earlier this year without a successor named, I was fascinated to see if this was a rare example of a company buying into the logic of the end of the CIO role. As it turns out, the decision is not so black-and-white.
I have interviewed Bhasin before about his interesting career path, and his significant “CIO-plus” responsibilities, and I hoped to learn more about how his career had progressed in the many months since he and I had last caught up, and what these decisions might mean for the future of the CIO role.
(This is the 23rd article in the “Beyond CIO” series. To read the prior articles featuring executives from HP, Schneider National, American Express, Aetna, and AllState Insurance, among others, please visit this link. To read future articles in the series, please click the “Follow” link to the upper left-hand side of this page.)
Peter High: Puneet, I thought we’d begin with your current role. You are the Senior Vice President of Corporate Operations and President of Waste Management Recycle America. Can you give a bit of an overview of that role?
Puneet Bhasin: As part of my role as senior VP of Corporate Operations I run our Collection Operations, which is the 20,000 trucks that we have that get onto the road every day. I run our maintenance operations. So those are the two core pieces of our operations that I am running. Then I also run our back office, so I run our shared services function, which is credit and collections, billing, payroll, etc. And I run our supply chain group. So that is what I would call our “back office.” Within the first piece of operations, collection operations, maintenance operations, I would throw logistics into that. As far as my role as President of Recycling, I run our recycling business unit, our recycling line of business, which is about $1.5 billion revenue business unit for us.
High: You have had such an interesting career progression at Waste Management. You began as “just the CIO” at Waste Management, but you proposed to the CEO, David Steiner, the formulation of the logistics operation which you were then put in charge of while still maintaining your CIO responsibilities. You then had a customer-centric role added to that, again while maintaining these other two roles. Now, you have a different set of responsibilities, as you just described, and you no longer maintain the CIO role. Please reflect on the series of events and augmentations, and how your having been a CIO multiple times over at companies like Monster and Ryder before Waste Management provided the experience to make this happen.
Bhasin: First and foremost I would say is that while I am a technologist, I am a business leader first and a technologist second. From the very first day I came to Waste Management, people would ask me what was my technology strategy, and I would somewhat proudly say “I have none.” To me, a technology strategy was really a series of initiatives or project that supported the overall business strategy. And so, when we in 2010 at Waste Management embarked on an initiative that we called transformation, I really modeled my IT initiatives around the key elements of Waste Management’s transformation. I tied technology and technology initiatives to the core elements of the business strategy.
9-8-2015
Novelis is a leading producer of rolled aluminum, and a global leader in aluminum recycling. The company’s aluminum is used in everything from automobiles to architecture to beverage cans to consumer electronics. Much of the company’s aluminum is re-created from material already in the world today, saving natural resources and allowing for the creation of consumer products that have a lower environmental footprint. Through its recycling leadership, what would have otherwise been discarded becomes the material for new creation.
Despite attaining more than $10 billion in revenue with more than 10,000 employees, the company never had a CIO prior to the incumbent, Karen Renner, who joined nearly five years ago. Renner had been a CIO at multiple units within General Electric, and as such was used to process excellence. What she found at Novelis was an IT department in need of new, standardized processes. As she discusses with CIO Insight contributor, Peter High, the journey has been a fruitful one.
CIO Insight: You are the first CIO in the company’s history. The company grew to a tremendous size before hiring a CIO. Why was that, and what led to the conclusion that one was needed?
Renner: In order to deliver on many of Novelis’ transformation strategies, an overhaul of the information technology and data was required. The information infrastructure was unable to meet the aggressive expansions required to enter and provide the data streams required for the automotive market. We also needed modern technology to support our employees working across geographies and to meet growing demands for mobility and collaboration technologies. In order to develop and execute a global IT strategy taking into account the varying regional requirements, the CIO role was created.
CIO Insight: How would you describe the culture of the IT team when you joined, and what have you done to change it?
Renner: We have an excellent team of IT professionals at Novelis with a great mix of technical business process knowledge and program management skills. We act as one team and trusted advisors to deliver best-fit information technology solutions that people value and enjoy using. The biggest cultural shift was to broaden the reach of the team to think bigger and broader–how technology can influence outside of a local requirement to our regions or globally.
9-8-15
When David Bray joined the Federal Communications Commission in 2013, it had had roughly nine CIOs in eight years. Clearly something new needed to happen. Though Bray was still in his 30s, he had been in government for more than half his life, as his government service began at the age of 15. The IT department had a significant need to modernize. Bray recognized that cloud computing and “as-a-service” technology represented a significant opportunity to modernize the FCC’s technology portfolio.
At the same time, in less than two years, he has gone from zero to more than 142,000 Twitter followers. He has creatively leveraged that and other networks he has created for inspiration for new ideas, to test ideas, and to help others. In this interview, he shares the details of his career journey, the transformation he has led at the FCC, the way in which he sees his job as part venture capitalist, the benefits of being social, and a variety of other topics.
(To listen to an unabridged audio version of this interview, please click this link. This is the 27th article in the CIO’s First 100 Days series. To listen to the prior 26 with the CIOs of Intel, J. Crew, GE, CVS Caremark, and Ecolab among many others, please visit this link. To read future articles in the series, please click the “Follow” link to the upper left-hand part of this page.)
Peter High: Most people are probably familiar with the FCC, but perhaps not the inner workings of it, and certainly not the inner workings of the CIO’s role. Could you take a few moments to introduce your role within the organization?
David Bray: Sure. I parachuted into my role as CIO of the FCC about 20 months ago. When I arrived, there had been about nine CIOs in eight years prior to my arrival. The FCC itself is about 18 different bureaus and offices with about 1,750 government employees. Our scope is anything involving wired or wireless across the United States.
My role as CIO was focused on the fact that when I arrived, I assessed that they had about 207 different IT systems – again, for only 1,750 people. I sometimes joke that I’m Oprah Winfrey – “Look under your chair, everyone is going to go home today and you get an IT system. Take it, it’s free!” I think we got there because over the last 20 years, whenever there was a new request, either from the administration, or from Congress, or whether it was a new law, the FCC would roll out a new IT system. That works for the first five or ten years, but over time you accumulate so many different IT systems that at least 80% of our IT budget was spent merely sustaining what we already had. That limited what I could do in terms of new development. While I am sure I could spend the next five or ten years updating each one of those 207 systems – and I should note that more than half of them are over ten years old – I think by the time I did that I would have to do it all over again.
We decided to do a new shift technology-wise to move to a common data platform that would be cloud based. We take the data from legacy systems and build a thin user interface with reusable code because there may be elements that are common across these different systems like user authentication, export to PDF, and map production that we do not have to produce 207 different times. Instead, we could reuse that code as part of a service catalog and that way we can be more effective and efficient in what we are doing. We have had some early successes.
We have also addressed the human element. The team was at half strength and while we are probably not going to bring it back to historical strength size-wise, we are trying to bring in new people and integrate them with the existing staff.
9-7-15
Cesar Cerrudo is Chief Technology Officer for IOActive Labs, a security consultancy with a global presence and deep expertise in hardware, software, and wetware assessments. He leads the team in producing ongoing, cutting-edge research in areas including Industrial Control Systems/SCADA, Smart Cities, the Internet of Things, and software and mobile device security. Also, he has hacked into the devices used by traffic systems in Washington, DC, New York, Seattle, and San Francisco, and found profound vulnerabilities in each. He surmises that the ease with which a sophisticated hacker who, unlike him, has malevolent intentions could bring major world cities to a stand-still as traffic lights could go off of their timers.
Upon discovering these vulnerabilities, Cerrudo shared his findings with the cities he had tested along with representatives from the US federal government, and he was surprised to find that the response was lukewarm at best. He has indicated that there are few cities in the world that are taking these risks seriously enough, but herein, he provides some thoughts on how they might mitigate these risks, and he also has advice for the average person on how they might mitigate their own cyber security risks.
(To read future articles in this vein, please click the “Follow” link above and to the left.)
Peter High: Cesar, last year you traveled to Washington, DC, set yourself up on Capitol Hill, and then hacked the city’s traffic system. You had done the same in Manhattan prior to that. What did the ease with which you were able to do so tell you about the vulnerabilities of the US capital and the US financial capital?
Cesar Cerrudo: First of all, I would like to clarify that I did not hack any city traffic system! What I did was—in a lab–hack some devices used by traffic systems. Then I did some passive tests (not hacking because it would be illegal) to prove that the same devices used on cities around the world were really vulnerable. What I found on lab tests was right. What I did was to look at the device’s wireless communications and device’s configuration to make sure the security problem really existed on a real deployment. I had positive results but I did not perform any attack.
The tests I did were easy to do and doing attacks would be easy too. You just need to have specific hardware that does not cost more than $100 and know the wireless protocol used by the devices. With that hardware and knowledge, doing tests and attacks is pretty simple and can be even done from many feet away since devices use wireless communications.
High: In terms of worst case scenarios, what would be the outcome if a bad actor were to undertake what you did and draw it out further?
Cerrudo: The worst case scenario would be traffic lights, ramp meters, and the like would use improper timing and cause traffic problems. An attack could consist of sending fake information about current traffic to traffic systems so they will make wrong decisions and actions by making traffic lights set improper times for red or green light durations. If an attacker can do this at a critical intersection, traffic problems propagate many blocks away making the problem worse. Depending on the amount of traffic and time of the day, the situation could get really bad causing traffic jams and accidents.
09-03-2015
Group Health Cooperative offers care system, care delivery and insurance coverage in order to achieve one goal: affordable, quality health care for all. Founded in 1947, the company now consists of 25 medical centers within Washington and northern Idaho. The company’s focus is on preventive care, combined with medical education, a charitable foundation and a nationally recognized research institute.
Don Lewis is the vice president and CTO at Group Health, and as he discusses with CIO Insight contributor Peter High, technology plays a significant role in ensuring that the company serves its customers while maintaining efficiencies.
CIO Insight: You have focused on turning IT from a cost center to a profit center at Group Health. How have you done so?
Don Lewis: We are working to improve the visibility that other business units have into what is going on within the entire IT environment. The goal is that IT serves as the caretaker for IT systems and applications, and as an advisor and expert collaborator on how technology can help grow the overall business.
While it’s true there are expenses associated with IT, there’s also value. However, that value does not always accrue within IT, which means there isn’t a true revenue side within IT. The value instead is what accrues across the entire business. So we work closely with the other business units to put in place strong business cases that clearly call out where that value accrues. If it’s in the health plan part of our business, the cost may all be within IT, but the value accrues with the health plan, that’s fine because from an overall organization standpoint, that’s what we’re looking for.
We focus on having those conversations with the business leaders and demonstrating the value technology delivers to the entire organization. We know technologies we implement generally have significant business value, but we haven’t always been good at capturing that. Now we have a more formalized process to do just that.
CIO Insight: You have also focused on more tightly aligning IT strategy to business strategy. What methods have you employed to do so?
Lewis: One example is how we rolled out an enterprisewide service management platform, in this case a service made possible through a vendor relationship with ServiceNow. We started the implementation with IT about a year ago, and we’ve led its rollout to other parts of the business including HR and purchasing. Serving as a model for how to implement and use technology to improve business processes is not a new role for IT here, but we are being more deliberate and collaborating more closely with our business partners. We’re showing first-hand how we use technologies, and educating our colleagues on how their areas of the business can realize similar benefits.
