Luis Iván Cuende: Bitcoin Blockchain Entrepreneur

Stephanie Overby

Luis Iván Cuende must have been born an entrepreneur.

Having no access to capital, equipment, or collaborators in his native Oviedo, Spain, he gravitated toward the first thing he could get his three-year-old hands on: one of his software-engineer father’s old computers. By age 12, Cuende had released his own distribution of Linux. At 15, he won the HackNow award for technical talent. And he spent his 17th year as advisor to Neelie Kroes, then the European Commissioner for
Digital Agenda.

Today the 20-year-old is CTO of Stampery, a San Mateo, California, based startup he co-founded in 2015, which leverages the Bitcoin blockchain—the shared public ledger that records and secures Bitcoin currency transactions—to provide instant data notarization and document certification.

“I’ve always wanted to create things; that’s what makes me happy,” says Cuende, who splits his time between Silicon Valley and Madrid. “I got started with software because it’s easy to launch a product without the need for a factory or millions of dollars.”

Cuende started to see how he could make a big impact when he was working with Kroes, whom he views as one of the most disruptive politicians he’s met.

“She has one of the freshest minds I have seen in the policy world full of suits,” he says.

After his time as one of her advisors was up, he attempted to launch several businesses, which ultimately led to Stampery.

Know Your Strengths— and Weaknesses

Four years ago, Cuende developed Cardwee, an application that enabled companies to provide customer loyalty points via Apple Passbook. “It was the very first one, and it was a very good product,” he says. “But I knew nothing about business or marketing.”

The lesson? You can build a solid product, but if you don’t know how to sell it, you will fail. “It’s the second most important thing in business,” Cuende says. “I’m good at giving talks to big groups, but I’m very bad at selling in person to big clients. My co-founders have much more experience in that, and I try to learn from them.”

Setbacks Aren’t Failures

Cuende met his Stampery collaborators, CMO Tommaso Prennushi, a former marketing executive, and CEO Daniele Levi, a former professional DJ and a cryptography enthusiast, in 2012 at the annual tech festival Campus Party, held that year in Berlin. “We were the only ones talking about Bitcoin in Spain at the time,” Cuende says.

The trio developed several Bitcoin-related products that went nowhere. At one point, they tried to get a banking license to create a Bitcoin exchange, but that required “millions of dollars we didn’t have,” Cuende says.

They tried a new tack, coming up with the idea for Stampery. Cuende calls it “the most obvious” noncurrency application for the Bitcoin blockchain—and one they could develop at low cost. Cuende and his team built Stampery and then secured US$600,000 in pre-seed funding, led by Draper & Associates, in November 2015.

An Upside to Risk

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Stomper provides legally binding proof of a digital document’s existence, integrity and ownership.

Most successful new business ideas are obvious, Cuende believes. “It’s not that you see something that other people don’t. It’s just that the idea involves risk. It’s something that people are afraid of today.”

A few years ago, most people associated Bitcoin only with nefarious activity, he says. But the blockchain technology underpinning Bitcoin fascinated Cuende and his partners. The blockchain maintains a verifiable chronological record of Bitcoin transactions, and it resists tampering by involving a network of thousands of independently managed computers in securing every update.

“Having an immutable ledger enables you to do a lot of stuff that couldn’t be done otherwise,” says Cuende. This includes transferring electronic money without needing a bank or other institution to guarantee it. “But why should we limit that ledger to storing only financial transactions? Anything that needs to be recorded in order to have a reliable proof of its existence, integrity, and even ownership can benefit from it. It’s the first time in the history of the computer that digital information isn’t necessarily modifiable and destroyable.”

Cuende saw only one downside: “The blockchain is very bad at transaction volume.” Cuende and his co-founders wanted to be able to certify millions of documents at a time; the Bitcoin network was capable of 2.5 per second. That’s where their technological innovation came in. Stampery is designed to stamp billions of data sets per second. In addition, the technology can work with any blockchain network, not just Bitcoin’s.

That makes using the Bitcoin blockchain low risk. “If it goes down tomorrow—which is highly improbable—we can migrate to another blockchain,” he says. In addition, the legally binding proofs that Stampery generates to certify the existence, integrity, and ownership of documents will remain valid and accessible even if Stampery disappears, because it leverages a decentralized technology.

Disrupting Decades of  Paper Pushing

Stampery currently has 1,500 customers, who fall into three user groups: creators protecting their intellectual property, attorneys certifying documents, and software developers. Lawyers saw the value immediately.

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“They need to create proofs from a lot of their digital documents on a daily basis. Then we have creators who use it to prove that they were the first creating a music track, art, even a process,” Cuende says. “What we’re seeing lately is a lot of enterprise interest for areas such as document management and systems security.”

Users can stamp up to 10 files monthly and access 1 gigabyte of encrypted storage for free, or pay $9.99 to stamp 1,000 files and access 50 gigabytes of storage. The product integrates with Dropbox cloud storage. Customers can also use Stampery to certify that e-mails were sent and received.

“You can make a deal via e-mail, click a button, and certify it with no one else involved but the two parties,” says Cuende.

Stampery is focusing on nonregulated use cases to establish the market and raise awareness. But the company is also actively lobbying regulators “to see the value of storing truth in a ledger that is mathematically secure,” says Cuende, particularly in Europe where notaries play a bigger role in the economy than they do in the United States.

Pen and paper have been the standard for hundreds of years. Human notaries are not “immutable, but they have these notebooks in which they establish truth, which is recognized by the state. Obtaining this type of trust involves cost and liability,” Cuende says. “Replacing it with math could save billions for whole industries.” Early in 2016, Stampery made a deal with the Estonian government to enable everyone with an e-Residency ID to use the system to certify and notarize personal and business documents.

Learn When to Step Up

Now that one of Cuende’s co-creations has become a full-blown business, he is adapting to 10-hour workdays and managing a growing team. “Being able to attract talent is super important to me. It’s great to work with very bright people that are better than me in many things,” says Cuende. “My days have gotten crazier. There’s pressure from everywhere,” he says. “It’s a challenge. But I love that feeling.” D!

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Connected Cars Rev Up For A Revolution [VIDEO]

Michael Zipf

Every two years, almost a million car enthusiasts flock to the Frankfurt International Motor Show (IAA), the world’s largest automotive trade fair, to enjoy the legendary spectacle of automakers rolling out their latest models to an accompaniment of flashing lights, throbbing bass beats, and stylishly dressed dancers.

While the giant exhibition halls on the ground Couple buying a car --- Image by © Don Mason/Blend Images/Corbisfloor echo to the sound of visitors jostling to examine paint work and leather, sleek sports cars, people carriers, electric vehicles, and the ubiquitous SUVs, the atmosphere in the New Mobility World exhibition on the first floor is altogether calmer. Nevertheless, this is where pressing issues about the future of mobility are being discussed.

The exhibitors here include Samsung, IBM, Deutsche Telekom, and – making its debut appearance – SAP. Awake to the far-reaching revolution that lies ahead of the automotive sector, these IT companies are in Frankfurt to showcase ways in which information technology is already making it possible to connect today’s highly digitized vehicles with each other, with their drivers, and with the technological infrastructure around them.

Revved up for a revolution

Chris Urmson considers the convergence of vehicles and IT to be “the most exciting development of our age.” Speaking in Frankfurt, Urmson, who heads up Google’s driverless car program, described the number of people killed on America’s roads every year – 36,000 – as “unacceptable” and stressed that his company’s intensive research into autonomous vehicles was aimed at improving road safety.

Robert Wolcott, Professor of Innovation Management and Corporate Entrepreneurship at Northwestern University’s Kellogg School of Management, spoke of “a new industrial revolution” whose impact would be “on a par with that of the railroads in the 19th century.”

So it’s no surprise that the IT sector is steering its focus toward the automotive industry.

At the IAA’s Smart City Forum, SAP has teamed up with various cities to present solutions designed to put an end to the daily traffic gridlock. And, to judge by the figures below, their capabilities are sorely needed:

  • By 2050, around 70% of the global population will be living in cities.
  • The number of cars on the planet is set to almost double by 2030.
  • Experts predict that the volume of freight traffic on Europe’s roads will increase 80% by 2025.
  • On average, a car driver in Germany spends 36 hours stuck in traffic jams every year.

Smart cities for a better quality of life

Smart Traffic Control enables cities to optimize traffic-light controls and free up additional car lanes during the rush hour to alleviate congestion, while data collected by RFID chips, sensors, cameras, and induction loops is used to compile congestion profiles and monitor real-time traffic issues. The Chinese city of Nanjing, which is home to 8 million people, has chosen to adopt smart traffic control technology to crunch the 20 billion data points captured in the city every year to produce actionable information for predictively responding to traffic congestion. And the software even learns as it goes along. In June of this year, the city signed a Custom Development Project with SAP. Currently, the SAP HANA platform helps Nanging analyze the data generated by its 10,000 taxis. The plan is for other modes of transportation to provide data in the future too.

“Smart traffic is one of the hottest topics for the world’s ever-expanding cities,” says Norbert Koppenhagen from the SAP Innovation Center Network, who is also at the IAA to showcase SAP’s cooperation with the German city of Darmstadt, near Frankfurt. “If we can keep the traffic flowing, we’ll make city-dwellers’ lives a whole lot more livable.”

The SAP Vehicle Insights cloud application links vehicular data with sensor data to provide actionable insight into driver behavior patterns and efficiency. The software helps logistics and mobility services providers monitor live vehicle conditions and manage their services within the constraints imposed by pollution and traffic congestion. The SAP Vehicle Insights also helps fleet operators manage their fleets optimally.

City App is another innovation being showcased in Frankfurt. Developed in collaboration with the German city of Nuremberg, this app features crowdsourcing functions that allow citizens to report defects and damage in their immediate vicinity. Algorithms assimilate these reports with data about factors such as traffic density in the affected city zone to help municipal authorities optimize their response.

There is also considerable buzz around TwoGo, the mobile app that lets employees at enterprises, institutions, and municipal authorities link up and share their daily commute to the office. “This is an exciting time for TwoGo,” says Alexander Machold, a member of the TwoGo business development team. “We’ve got vehicle manufacturers, parking garage operators, local authorities, and government ministries all looking into how TwoGo could help them cut costs and develop new business models.” What’s more, he says, the app sometimes opens the door to cross-selling opportunities for other SAP solutions.

“The number of connected cars on our roads is growing; more and more vehicles are being outfitted with sensors; and even driverless cars are becoming a genuine possibility. All in all, this is a great opportunity for us to transform cities, industries, and businesses sustainably to create a better future,” says Stephan Brand, Vice President, PI Analytics Applications, Products and Innovation at SAP.

The Internet has changed the way we buy cars, while mobile technology is changing what we expect them to do. Learn more about The Hyperconnected Car.

This story also appeared in the SAP Business Trends community.

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How One Business Approach Can Save The Environment – And Bring $4.5 Trillion To The World Economy

Shelly Dutton

Despite reports of a turbulent global economy, the World Bank delivered some great news recently. For the first time in history, extreme poverty (people living on less than $1.90 each day) worldwide is set to fall to below 10%. Considering that this rate has declined from 37.1% in 1990 to 9.6% in 2015, it is hopeful that one-third of the global population will participate the middle class by 2030.

For all industries, this growth will bring new challenges and pressures when meeting unprecedented demand in an environment of dwindling – if not already scarce – resources. First of all, gold, silver, indium, iridium, tungsten, and many other vital resources could be depleted in as little as five years. And because current manufacturing methods create massive waste, about 80% of $3.2 trillion material value is lost irrecoverably each year in the consumer products industry alone.

This new reality is forcing companies to rethink our current, linear “take-make-dispose” approach to designing, producing, delivering, and selling products and services. According to Dan Wellers, Digital Futures lead for SAP, “If the economy is not sustainable, we are in trouble. And in the case of the linear economy, it is not sustainable because it inherently wastes resources that are becoming scarce. Right now, most serious businesspeople think sustainability is in conflict with earning a profit and becoming wealthy. True sustainability, economic sustainability, is exactly the opposite. With this mindset, it becomes strategic to support practices that support a circular economy in the long run.”

The circular economy: Good for business, good for the environment

What if your business practices and operation can help save our planet? Would you do it? Now, what if I said that this one business approach could put $4.5 trillion up for grabs?

By taking a more restorative and regenerative approach, every company can redesign the future of the environment, the economy, and their overall business. “Made possible by the digital economy, forward-thinking businesses are choosing to embrace this value to intentionally reimagine the economy around how we use resources,” observed Wellers. “By slowing down the depletion of resources and possibly even rejuvenating them, early adopters of circular practices have created business models that are profitable, and therefore sustainable. And they are starting to scale.”

In addition to making good financial sense, there’s another reason the circular economy is a sound business practice: Your customers. In his blog 99 Mind-Blowing Ways the Digital Economy Is Changing the Future of Business, Vivek Bapat revealed that 68% of consumers are interested in companies that bring social and environmental change. More important, 84% of global consumers actively seek out socially and environmentally responsible brands and are willing to switch brands associated with those causes.

Five ways your business can take advantage of the circular economy

As the circular economy proves, business and economic growth does not need to happen at the cost of the environment and public health and safety. As everyone searches for an answer to job creation, economic development, and environmental safety, we are in an economic era primed for change.

Wellers states, “Thanks to the exponential growth and power of digital technology, circular business models are becoming profitable. As a result, businesses are scaling their wealth by investing in new economic growth strategies.”

What are these strategies? Here are five business models that can enable companies to unlock the economic benefits of the circular economy, as stated in Accenture’s report Circular Advantage: Innovative Business Models and Technologies that Create Value:

  1. Circular supplies: Deliver fully renewable, recyclable, and biodegradable resource inputs that underpin circular production and consumption systems.
  2. Recovery of resources: Eliminate material leakage and maximize the economic value of product return flows.
  3. Extension of product life: Extend the life cycle of products and assets. Regain the value of your resources by maintaining and improving them by repairing, upgrading, remanufacturing, or remarketing products.
  4. Sharing platforms: Promote a platform for collaboration among product users as individuals or organizations.
  5. Product as a service: Provide an alternative to the traditional model of “buy and own.” Allow products to be shared by many customers through a lease or pay-for-use arrangement.

To learn more about the circular economy, check out Dan Wellers’ blog “4 Ways The Digital Economy Is Circular.”

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Diving Deep Into Digital Experiences

Kai Goerlich

 

Google Cardboard VR goggles cost US$8
By 2019, immersive solutions
will be adopted in 20% of enterprise businesses
By 2025, the market for immersive hardware and software technology could be $182 billion
In 2017, Lowe’s launched
Holoroom How To VR DIY clinics

Link to Sources


From Dipping a Toe to Fully Immersed

The first wave of virtual reality (VR) and augmented reality (AR) is here,

using smartphones, glasses, and goggles to place us in the middle of 360-degree digital environments or overlay digital artifacts on the physical world. Prototypes, pilot projects, and first movers have already emerged:

  • Guiding warehouse pickers, cargo loaders, and truck drivers with AR
  • Overlaying constantly updated blueprints, measurements, and other construction data on building sites in real time with AR
  • Building 3D machine prototypes in VR for virtual testing and maintenance planning
  • Exhibiting new appliances and fixtures in a VR mockup of the customer’s home
  • Teaching medicine with AR tools that overlay diagnostics and instructions on patients’ bodies

A Vast Sea of Possibilities

Immersive technologies leapt forward in spring 2017 with the introduction of three new products:

  • Nvidia’s Project Holodeck, which generates shared photorealistic VR environments
  • A cloud-based platform for industrial AR from Lenovo New Vision AR and Wikitude
  • A workspace and headset from Meta that lets users use their hands to interact with AR artifacts

The Truly Digital Workplace

New immersive experiences won’t simply be new tools for existing tasks. They promise to create entirely new ways of working.

VR avatars that look and sound like their owners will soon be able to meet in realistic virtual meeting spaces without requiring users to leave their desks or even their homes. With enough computing power and a smart-enough AI, we could soon let VR avatars act as our proxies while we’re doing other things—and (theoretically) do it well enough that no one can tell the difference.

We’ll need a way to signal when an avatar is being human driven in real time, when it’s on autopilot, and when it’s owned by a bot.


What Is Immersion?

A completely immersive experience that’s indistinguishable from real life is impossible given the current constraints on power, throughput, and battery life.

To make current digital experiences more convincing, we’ll need interactive sensors in objects and materials, more powerful infrastructure to create realistic images, and smarter interfaces to interpret and interact with data.

When everything around us is intelligent and interactive, every environment could have an AR overlay or VR presence, with use cases ranging from gaming to firefighting.

We could see a backlash touting the superiority of the unmediated physical world—but multisensory immersive experiences that we can navigate in 360-degree space will change what we consider “real.”


Download the executive brief Diving Deep Into Digital Experiences.


Read the full article Swimming in the Immersive Digital Experience.

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Blockchain: Much Ado About Nothing? How Very Wrong!

Juergen Roehricht

Let me start with a quote from McKinsey, that in my view hits the nail right on the head:

“No matter what the context, there’s a strong possibility that blockchain will affect your business. The very big question is when.”

Now, in the industries that I cover in my role as general manager and innovation lead for travel and transportation/cargo, engineering, construction and operations, professional services, and media, I engage with many different digital leaders on a regular basis. We are having visionary conversations about the impact of digital technologies and digital transformation on business models and business processes and the way companies address them. Many topics are at different stages of the hype cycle, but the one that definitely stands out is blockchain as a new enabling technology in the enterprise space.

Just a few weeks ago, a customer said to me: “My board is all about blockchain, but I don’t get what the excitement is about – isn’t this just about Bitcoin and a cryptocurrency?”

I can totally understand his confusion. I’ve been talking to many blockchain experts who know that it will have a big impact on many industries and the related business communities. But even they are uncertain about the where, how, and when, and about the strategy on how to deal with it. The reason is that we often look at it from a technology point of view. This is a common mistake, as the starting point should be the business problem and the business issue or process that you want to solve or create.

In my many interactions with Torsten Zube, vice president and blockchain lead at the SAP Innovation Center Network (ICN) in Potsdam, Germany, he has made it very clear that it’s mandatory to “start by identifying the real business problem and then … figure out how blockchain can add value.” This is the right approach.

What we really need to do is provide guidance for our customers to enable them to bring this into the context of their business in order to understand and define valuable use cases for blockchain. We need to use design thinking or other creative strategies to identify the relevant fields for a particular company. We must work with our customers and review their processes and business models to determine which key blockchain aspects, such as provenance and trust, are crucial elements in their industry. This way, we can identify use cases in which blockchain will benefit their business and make their company more successful.

My highly regarded colleague Ulrich Scholl, who is responsible for externalizing the latest industry innovations, especially blockchain, in our SAP Industries organization, recently said: “These kinds of use cases are often not evident, as blockchain capabilities sometimes provide minor but crucial elements when used in combination with other enabling technologies such as IoT and machine learning.” In one recent and very interesting customer case from the autonomous province of South Tyrol, Italy, blockchain was one of various cloud platform services required to make this scenario happen.

How to identify “blockchainable” processes and business topics (value drivers)

To understand the true value and impact of blockchain, we need to keep in mind that a verified transaction can involve any kind of digital asset such as cryptocurrency, contracts, and records (for instance, assets can be tangible equipment or digital media). While blockchain can be used for many different scenarios, some don’t need blockchain technology because they could be handled by a simple ledger, managed and owned by the company, or have such a large volume of data that a distributed ledger cannot support it. Blockchain would not the right solution for these scenarios.

Here are some common factors that can help identify potential blockchain use cases:

  • Multiparty collaboration: Are many different parties, and not just one, involved in the process or scenario, but one party dominates everything? For example, a company with many parties in the ecosystem that are all connected to it but not in a network or more decentralized structure.
  • Process optimization: Will blockchain massively improve a process that today is performed manually, involves multiple parties, needs to be digitized, and is very cumbersome to manage or be part of?
  • Transparency and auditability: Is it important to offer each party transparency (e.g., on the origin, delivery, geolocation, and hand-overs) and auditable steps? (e.g., How can I be sure that the wine in my bottle really is from Bordeaux?)
  • Risk and fraud minimization: Does it help (or is there a need) to minimize risk and fraud for each party, or at least for most of them in the chain? (e.g., A company might want to know if its goods have suffered any shocks in transit or whether the predefined route was not followed.)

Connecting blockchain with the Internet of Things

This is where blockchain’s value can be increased and automated. Just think about a blockchain that is not just maintained or simply added by a human, but automatically acquires different signals from sensors, such as geolocation, temperature, shock, usage hours, alerts, etc. One that knows when a payment or any kind of money transfer has been made, a delivery has been received or arrived at its destination, or a digital asset has been downloaded from the Internet. The relevant automated actions or signals are then recorded in the distributed ledger/blockchain.

Of course, given the massive amount of data that is created by those sensors, automated signals, and data streams, it is imperative that only the very few pieces of data coming from a signal that are relevant for a specific business process or transaction be stored in a blockchain. By recording non-relevant data in a blockchain, we would soon hit data size and performance issues.

Ideas to ignite thinking in specific industries

  • The digital, “blockchained” physical asset (asset lifecycle management): No matter whether you build, use, or maintain an asset, such as a machine, a piece of equipment, a turbine, or a whole aircraft, a blockchain transaction (genesis block) can be created when the asset is created. The blockchain will contain all the contracts and information for the asset as a whole and its parts. In this scenario, an entry is made in the blockchain every time an asset is: sold; maintained by the producer or owner’s maintenance team; audited by a third-party auditor; has malfunctioning parts; sends or receives information from sensors; meets specific thresholds; has spare parts built in; requires a change to the purpose or the capability of the assets due to age or usage duration; receives (or doesn’t receive) payments; etc.
  • The delivery chain, bill of lading: In today’s world, shipping freight from A to B involves lots of manual steps. For example, a carrier receives a booking from a shipper or forwarder, confirms it, and, before the document cut-off time, receives the shipping instructions describing the content and how the master bill of lading should be created. The carrier creates the original bill of lading and hands it over to the ordering party (the current owner of the cargo). Today, that original paper-based bill of lading is required for the freight (the container) to be picked up at the destination (the port of discharge). Imagine if we could do this as a blockchain transaction and by forwarding a PDF by email. There would be one transaction at the beginning, when the shipping carrier creates the bill of lading. Then there would be look-ups, e.g., by the import and release processing clerk of the shipper at the port of discharge and the new owner of the cargo at the destination. Then another transaction could document that the container had been handed over.

The future

I personally believe in the massive transformative power of blockchain, even though we are just at the very beginning. This transformation will be achieved by looking at larger networks with many participants that all have a nearly equal part in a process. Today, many blockchain ideas still have a more centralistic approach, in which one company has a more prominent role than the (many) others and often is “managing” this blockchain/distributed ledger-supported process/approach.

But think about the delivery scenario today, where goods are shipped from one door or company to another door or company, across many parties in the delivery chain: from the shipper/producer via the third-party logistics service provider and/or freight forwarder; to the companies doing the actual transport, like vessels, trucks, aircraft, trains, cars, ferries, and so on; to the final destination/receiver. And all of this happens across many countries, many borders, many handovers, customs, etc., and involves a lot of paperwork, across all constituents.

“Blockchaining” this will be truly transformational. But it will need all constituents in the process or network to participate, even if they have different interests, and to agree on basic principles and an approach.

As Torsten Zube put it, I am not a “blockchain extremist” nor a denier that believes this is just a hype, but a realist open to embracing a new technology in order to change our processes for our collective benefit.

Turn insight into action, make better decisions, and transform your business. Learn how.

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Juergen Roehricht

About Juergen Roehricht

Juergen Roehricht is General Manager of Services Industries and Innovation Lead of the Middle and Eastern Europe region for SAP. The industries he covers include travel and transportation; professional services; media; and engineering, construction and operations. Besides managing the business in those segments, Juergen is focused on supporting innovation and digital transformation strategies of SAP customers. With more than 20 years of experience in IT, he stays up to date on the leading edge of innovation, pioneering and bringing new technologies to market and providing thought leadership. He has published several articles and books, including Collaborative Business and The Multi-Channel Company.