How London Achieved, And Maintained, Its Leadership In International Finance

Tom Groenfeldt

As a guide to the issues facing the City of London during Brexit, who could be better than Tony Norfield, a university Marxist-turned-City-trader now sporting a Ph.D. in economics from the University of London?

With 20 years of experience in dealing rooms at money center banks in London, he explains how finance concentrates power and profits in just a few financial centers, and London leads as an international center. As England and Europe prepare to set the terms of Brexit, Norfield’s historical perspective on how England has promoted finance is fascinating.

For fintech firms wondering if they should stay in London, follow the siren calls from Berlin, apply to the French Tech Ticket program, or look at Lisbon. Norfield has some history to offer: The City, with backing from both Labor and Conservative governments and the Bank of England, has adapted remarkably well to change. It shifted from lending to acting as an intermediary. It used the Big Bang to bring in foreign competition and capital. It shifted from sterling to doing business in the U.S. dollar and dozens of other currencies. And it has welcomed Arab capital with 22 Islamic banks, more than all other western countries combined.

Writing before the Brexit referendum, Norfield predicted that Europe might act against the financial domination of the UK and U.S., and that does appear, sporadically, to be happening. French President François Hollande recently called for a hard Brexit to discourage other countries from following the UK’s example, but the erratic nature of French politics confirms Norfield’s emphasis on the value arising from the security and centuries-long stability of the British state. Unlike Paris, London did not erupt in 1968 and it hasn’t experienced a leadership assassination attempt like the one on DeGaulle. (Norfield kindly omits comparisons with the U.S. on this topic.)

London,which holds a substantial lead over New York as an international financial center, has a geographical advantage, sitting in a time zone between Asia and the U.S., so it can trade with both during regular working hours. It also enjoys a regulatory climate that has long favored finance by allowing its banks, for example, to work with communist countries during the Cold War.

The author occasionally mentions his personal experience at some key points in finance. He was working at a Japanese bank when that country’s surging economy imploded, and he was at ABN AMRO when it moved its securities business to London, but left FX in Amsterdam. A stint in Sydney showed him Australia’s time-zone disadvantage, and he was in regular chats with a Bundesbank officer in London when Britain pulled out of the Exchange Rate Mechanism (ERM).

Norfield uses the term imperialism to describe the role of financial power centers.

The concentration of financial power is a little startling. In 2013, Norfield writes, 75% of the top 100 international corporations were in just six countries — the U.S., UK, France, Germany, Japan, and Switzerland.

“All forms of international finance, and even commerce, can also be seen as parasitic on the value created elsewhere,” he wrote. Countries with advanced finance find customers in countries, rich or poor, with less sophisticated finance. In 2013, the U.S. had a net gain of $209 billion from its  foreign investments, equivalent to receiving the entire economic output of the Czech Republic.

Finance is intertwined with politics, with corporations and with competition between the U.S. and UK for primacy. American banking laws have sometimes handicapped the U.S. financial services industry. Even as the U.S. was trying to gain access to the British Empire and trade with Commonwealth countries, American restrictions on foreign banking clashed with its large corporations which were seeking international expansion.

One result was the euromarket, which grew from $1 billion in 1960 to $1,050 billion by 1983, drawing European finance houses to expand their London operations. German banks, Norfield notes, do most of their securities business in London. U.S. banks also expanded London offices because they could serve international corporate clients with funding that was not so readily, or cheaply, available in the U.S. By 1971 the eurodollar market was equal to the money supply of France, and London had attracted 160 banks from 48 countries.

Staying outside the euro has also been a key to London’s position. British political leaders saw in 1976 and 1992 that inside Europe’s monetary system, it would be constrained by other states, particularly Germany.

Norfield believes global developments, often first visible in the financial sphere, can destabilize relationships between major powers.

It is likely that finance will continue to have the support of the British government to help it adjust.

“Above all, there was more consistent promotion of international financial business by the British authorities, which included an implicit promise not to distract financial interests with any changes in legislation,” he wrote.

Fintech firms and banks based in London might find Britain’s consistency encouraging. For updates, check Norfield’s blogs about Brexit and other finance topics. And for regular reports on the status of international finance centers, see Z/YEN’s Global Financial Centres Index.

Comments

About Tom Groenfeldt

Tom Groenfeldt is a freelance reporter who focuses largely on finance and technology including trading, risk, back-office systems, big data, analytics, retail banking, international banking, and e-commerce. His work appears in several publications, including Forbes.com in the U.S. and Banking Technology in London. In 2015, he was named to the "FinServ 25," the top 25 top global influencers in banking, by The Financial Brand.

GDPR Before And After May 25

Jerome Pugnet

In just two months, the “big deadline” for European Union General Data Protection Regulation (GDPR) compliance is going to fall unyieldingly on businesses in Europe and around the world. That means that many people are now in the home stretch to get their employer ready – as much as they possibly can.

This may seem a provocative way to put it, since usually one is either ready/compliant or one is unready/noncompliant. However, conversations with customers, partners, analysts, and experts reveal that a significant number of impacted organizations will be in a “partial stage of readiness” when the deadline arrives.

Some of these businesses say they hope to be able to show authorities that they’ve implemented adequate responses to the most significant requirements of the regulation. Others are hoping to show that they are at least making their best effort. However, they have no certainty that it will be sufficient for the authorities.

Will the authorities be lenient? What about the public?

The question of whether the authorities will be lenient appears to be highly speculative. And the sentiment seems to vary widely from one country to another.

Most recently, the breaking news around Facebook and Cambridge Analytica has put the issue of data protection even more under the spotlight. One can imagine that this will not encourage leniency from the authorities, especially towards large organizations or holders of large amounts of personal data. At minimum, it shows that the topic won’t recede after May 25 or be limited to European concerns.

One more thing is certain: showing care for personal data and taking positive action to protect it will increasingly become a central element in many organizations’ communication strategy. It has deep implications in terms of actual execution while scrutiny increases (and not just from authorities). The super-fast amplification of any failure can unforgivingly hit the strongest brands.

What is actually being done today within impacted organizations?

So what is being done today to reach the stage of confident GDPR execution, where personal data is effectively protected and continuously managed in a compliant fashion? And is it sufficient?

In most cases, it probably isn’t, no matter how close a company is to total compliance. Because for most companies the major focus is on meeting the deadline rather than on reworking (in-depth) the processes by which data is managed, protected, secured, and governed.

From what we see and hear, important organizational steps have generally been taken (like the nomination of data protection officers or data protection “correspondents” across organizational units). But the solutions implemented to support the effort are often short-term fixes.

A portrait of three struggles

When it comes to becoming GDPR-compliant, we see:

  • Companies that have relied (and will continue to rely for some time) on their favorite consultants. These consultants have developed a good understanding of the articles of the GDPR and tools to cover key requirements, such as the recording of processing activities (ROPA), data protection impact assessments (DPIAs), data subject consent management, etc.
  • Companies that are implementing a set of tools to address different requirements, but not in an integrated fashion.
  • Companies that are utilizing recently created, specialized solutions that claim full coverage of the various areas of GDPR. But given these solutions’ immaturity, it’s difficult to determine how effective, easy-to-use, scalable, and maintainable they will be.

The need for stronger, broader, and integrated solutions

Looking at these different situations, I wonder how many of these organizations have actually found sustainable solutions that will allow them to both:

  • Comply with reasonable efforts to meet the GDPR going forward and other data protection regulatory requirements along the way
  • Be fully in control and equipped to effectively manage and protect the ever-growing masses of personal data they handle

For companies today, compliance concerns aren’t limited to a worry about the fines that are hanging over their heads. In this digital age, the smallest breach can be amplified extremely fast and expose a company’s reputation.

It’s certainly worth continuing the conversation after May 25 by moving beyond short-term fixes and stopgap measures.

Establishing strong governance with best-of-breed technology

As we described in an earlier GDPR blog, the different activities involved to enable compliance with the GDPR and manage data privacy and protection should be brought together in a more coherent and integrated set around the “four pillars” (privacy governance, data management, data security, and consent management), with solutions that deliver the capabilities needed to support each of them.

Particularly important to orchestrating this set is establishing a strong data privacy and protection governance (first pillar). This pillar is the driver for the whole ensemble, and it calls for the use of best-of-breed GRC technology enabled by a high level of automation and integration with other business systems.

This involves:

  • Having in place and maintaining a robust, standardized control framework
  • Implementing and managing a comprehensive set of policies (with communication cycles and personnel enablement where needed)
  • Establishing processes for regular evaluation and monitoring of critical controls, with clearly defined accountability and issue management procedures
  • Reporting on a regular and ad hoc basis on control effectiveness and issues

This can also tie into the organization’s three lines of defense program, which allows it to take advantage of integrated audit management capabilities and help deliver increased assurance on the effectiveness of the GDPR program.

Bottom line

In the big rush to meet the May 25 GDPR deadline, many companies have been challenged to implement comprehensive, integrated solutions to meet the key requirements around data privacy governance, data security, data management, and consent management, while also equipping themselves with a durable, cost-effective technical base to manage data protection across their business. The longer-term need to develop a strong data privacy and protection program (to be fitter in an ever more digital business environment and to protect their brand and reputation) is another reason companies should leverage enterprise-wide, integrated solutions to support it.

Beyond the challenges we described, this can actually provide more opportunities to grow the business, as business partners have confidence that their data is protected and soundly managed.

It’s not too late for companies to review their options.

Learn more

This article originally appeared at SAP Analytics and is republished by permission.

Comments

Jerome Pugnet

About Jerome Pugnet

Jérôme Pugnet is a senior director of GRC Product Marketing at SAP SE, based in London, and has over 12 years of experience in risk and compliance management, business process control, IT governance, fraud and audit management domains, in particular in the financial services industry. He has over 16 years of previous experience on financial software and ERP, in implementation engagements and pre-sales advisory roles.

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

Comments

Daniel Schmid

About Daniel Schmid

Daniel Schmid was appointed Chief Sustainability Officer at SAP in 2014. Since 2008 he has been engaged in transforming SAP into a role model of a sustainable organization, establishing mid and long term sustainability targets. Linking non-financial and financial performance are key achievements of Daniel and his team.

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

Comments

Michael Laprocido

About Michael Laprocido

Mike Laprocido serves as a Strategic Industry Advisor for SAP. He is responsible for developing thought leadership and driving SAP solution adoption in the chemical and oil and gas industries. With over three decades in various executive roles at BP Oil, BP Chemicals, Kuraray America, Panda Energy and IBM prior to joining SAP, Mike has gained a broad and deep industry knowledge base that he leverages to help his clients to innovate and transform their business through the application of digital technology.

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

Comments

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

Comments

About Joerg Koesters

Joerg Koesters is the Head of Retail Marketing and Communication at SAP. He is a Technology Marketing executive with 20 years of experience in Marketing, Sales and Consulting, Joerg has deep knowledge in retail and consumer products having worked both in the industry and in the technology sector.

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

Comments

Rob Meikle

About Rob Meikle

Rob Meikle is the Chief Information Officer (CIO) for the City of Toronto, Canada's largest city, sixth largest government and home to a diverse population of about 2.7 million people.

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

Comments

About Jason Bloomberg

Jason Bloomberg is a leading IT industry analyst, Forbes contributor, keynote speaker, and globally recognized expert on multiple disruptive trends in enterprise technology and digital transformation. He is founder and president of the agile digital transformation analyst firm Intellyx. He is ranked #5 on Onalytica’s list of top digital transformation influencers for 2018 and #15 on Jax’s list of top DevOps influencers for 2017, the only person to appear on both lists. Mr. Bloomberg is the author or coauthor of four books, including The Agile Architecture Revolution (Wiley, 2013). His next book, Agile Digital Transformation, is due within the next year.

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

Comments

Lane Leskela

About Lane Leskela

Lane Leskela, global business development director, Finance and Risk, for SAP, is an accomplished enterprise software leader with years of experience in customer advisory, marketing, market research, and business development. He is an expert in risk and compliance management software functions, solution road maps, implementation strategy, and channel partner management.

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

Comments

About Jennifer Scholze

Jennifer Scholze is the Global Lead for Industry Marketing for the Mill Products and Mining Industries at SAP. She has over 20 years of technology marketing, communications and venture capital experience and lives in the Boston area with her husband and two children.

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

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About Matt Wilkinson

Matt Wilkinson is the General Manager, Consumer Industries for SAP ANZ. Having operational roles in consumer industries organisations combined with 20+ years of professional services in both delivery and sales roles with cloud and on premise solutions, provide him with a unique insight to help organisations achieve effective digital transformation.

Why the Cloud Helps to Overcome Security Concerns

Sven Denecken

security in the cloudsThe current heated discussion about security and cloud reminds me of an interesting recent survey on cloud computing from Saugatuck Research. Not much has changed when it comes to customers and the way the cloud is perceived. Security was and is top of mind for everyone.

Rightfully so, I agree with Saugatuck´s latest research.

Saugatuck believes that the reality of cloud IT is the reverse of popular thought

They believe that “the growing prevalence of cloud IT use, including communication and interaction throughout multiple ‘Internets of things,’ can deliver vastly improved security that reduces the risk of data loss and system breaches by improving the ability to secure, monitor, and manage devices and software.”

chart of top security concerns

Read the detailed research in last week’s Saugatuck Research Alert, they outlined how buyer concerns regarding Cloud have changed – and not changed – over the years.

I agree especially with the following conclusion:

As we noted in last week’s Research Alert (and in previous research published for our subscription clients), “the” great misconception about Cloud, especially public Cloud-based IT services, is that they are less secure than other IT provision alternatives. We find this perception widespread, and typically wrong. The data centers and networks built for Cloud platforms and service delivery tend to be architected with much greater reliability and security than most on-premises data centers, in part because the entire data center is architected and built with uniform technologies and implementations of those technologies.”

Security is top of mind for customers, ensuring that cloud computing vendors need to invest substantially and keep investing. As customer, you need a stable and viable partner when it comes to security.

Some of the key topics are outlined in one of my latest blogs, The 1-2-3 of Cloud Security at SAP

Cloud computing done right can help to overcome security concerns, especially as many customers realize that they are not able or willing to invest as much as a specialized vendor can. That on premise isn´t safer per se. And access to data, via mobile and/or the cloud, needs a clear strategy with IT departments in the lead.

What do you think? Post your comments below. You can also follow me on twitter @SDenecken to stay on top of latest and greatest about cloud computing.

This post originally appeared on the SCN Cloud Computing space and was republished with permission.

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Marina Simonians

About Marina Simonians

Marina Simonians is the Head of Global ISV GTM Strategy at SAP responsible for building new global ISV software driven initiatives for Big Data, AI/ML, Advanced analytics and IoT. With a passion for ecosystems she believes partnerships are most critical success factor in today’s software-driven market.

The Blockchain Solution

By Gil Perez, Tom Raftery, Hans Thalbauer, Dan Wellers, and Fawn Fitter

In 2013, several UK supermarket chains discovered that products they were selling as beef were actually made at least partly—and in some cases, entirely—from horsemeat. The resulting uproar led to a series of product recalls, prompted stricter food testing, and spurred the European food industry to take a closer look at how unlabeled or mislabeled ingredients were finding their way into the food chain.

By 2020, a scandal like this will be eminently preventable.

The separation between bovine and equine will become immutable with Internet of Things (IoT) sensors, which will track the provenance and identity of every animal from stall to store, adding the data to a blockchain that anyone can check but no one can alter.

Food processing companies will be able to use that blockchain to confirm and label the contents of their products accordingly—down to the specific farms and animals represented in every individual package. That level of detail may be too much information for shoppers, but they will at least be able to trust that their meatballs come from the appropriate species.

The Spine of Digitalization

Keeping food safer and more traceable is just the beginning, however. Improvements in the supply chain, which have been incremental for decades despite billions of dollars of technology investments, are about to go exponential. Emerging technologies are converging to transform the supply chain from tactical to strategic, from an easily replicable commodity to a new source of competitive differentiation.

You may already be thinking about how to take advantage of blockchain technology, which makes data and transactions immutable, transparent, and verifiable (see “What Is Blockchain and How Does It Work?”). That will be a powerful tool to boost supply chain speed and efficiency—always a worthy goal, but hardly a disruptive one.

However, if you think of blockchain as the spine of digitalization and technologies such as AI, the IoT, 3D printing, autonomous vehicles, and drones as the limbs, you have a powerful supply chain body that can leapfrog ahead of its competition.

What Is Blockchain and How Does It Work?

Here’s why blockchain technology is critical to transforming the supply chain.

Blockchain is essentially a sequential, distributed ledger of transactions that is constantly updated on a global network of computers. The ownership and history of a transaction is embedded in the blockchain at the transaction’s earliest stages and verified at every subsequent stage.

A blockchain network uses vast amounts of computing power to encrypt the ledger as it’s being written. This makes it possible for every computer in the network to verify the transactions safely and transparently. The more organizations that participate in the ledger, the more complex and secure the encryption becomes, making it increasingly tamperproof.

Why does blockchain matter for the supply chain?

  • It enables the safe exchange of value without a central verifying partner, which makes transactions faster and less expensive.
  • It dramatically simplifies recordkeeping by establishing a single, authoritative view of the truth across all parties.
  • It builds a secure, immutable history and chain of custody as different parties handle the items being shipped, and it updates the relevant documentation.
  • By doing these things, blockchain allows companies to create smart contracts based on programmable business logic, which can execute themselves autonomously and thereby save time and money by reducing friction and intermediaries.

Hints of the Future

In the mid-1990s, when the World Wide Web was in its infancy, we had no idea that the internet would become so large and pervasive, nor that we’d find a way to carry it all in our pockets on small slabs of glass.

But we could tell that it had vast potential.

Today, with the combination of emerging technologies that promise to turbocharge digital transformation, we’re just beginning to see how we might turn the supply chain into a source of competitive advantage (see “What’s the Magic Combination?”).

What’s the Magic Combination?

Those who focus on blockchain in isolation will miss out on a much bigger supply chain opportunity.

Many experts believe emerging technologies will work with blockchain to digitalize the supply chain and create new business models:

  • Blockchain will provide the foundation of automated trust for all parties in the supply chain.
  • The IoT will link objects—from tiny devices to large machines—and generate data about status, locations, and transactions that will be recorded on the blockchain.
  • 3D printing will extend the supply chain to the customer’s doorstep with hyperlocal manufacturing of parts and products with IoT sensors built into the items and/or their packaging. Every manufactured object will be smart, connected, and able to communicate so that it can be tracked and traced as needed.
  • Big Data management tools will process all the information streaming in around the clock from IoT sensors.
  • AI and machine learning will analyze this enormous amount of data to reveal patterns and enable true predictability in every area of the supply chain.

Combining these technologies with powerful analytics tools to predict trends will make lack of visibility into the supply chain a thing of the past. Organizations will be able to examine a single machine across its entire lifecycle and identify areas where they can improve performance and increase return on investment. They’ll be able to follow and monitor every component of a product, from design through delivery and service. They’ll be able to trigger and track automated actions between and among partners and customers to provide customized transactions in real time based on real data.

After decades of talk about markets of one, companies will finally have the power to create them—at scale and profitably.

Amazon, for example, is becoming as much a logistics company as a retailer. Its ordering and delivery systems are so streamlined that its customers can launch and complete a same-day transaction with a push of a single IP-enabled button or a word to its ever-attentive AI device, Alexa. And this level of experimentation and innovation is bubbling up across industries.

Consider manufacturing, where the IoT is transforming automation inside already highly automated factories. Machine-to-machine communication is enabling robots to set up, provision, and unload equipment quickly and accurately with minimal human intervention. Meanwhile, sensors across the factory floor are already capable of gathering such information as how often each machine needs maintenance or how much raw material to order given current production trends.

Once they harvest enough data, businesses will be able to feed it through machine learning algorithms to identify trends that forecast future outcomes. At that point, the supply chain will start to become both automated and predictive. We’ll begin to see business models that include proactively scheduling maintenance, replacing parts just before they’re likely to break, and automatically ordering materials and initiating customer shipments.

Italian train operator Trenitalia, for example, has put IoT sensors on its locomotives and passenger cars and is using analytics and in-memory computing to gauge the health of its trains in real time, according to an article in Computer Weekly. “It is now possible to affordably collect huge amounts of data from hundreds of sensors in a single train, analyse that data in real time and detect problems before they actually happen,” Trenitalia’s CIO Danilo Gismondi told Computer Weekly.

Blockchain allows all the critical steps of the supply chain to go electronic and become irrefutably verifiable by all the critical parties within minutes: the seller and buyer, banks, logistics carriers, and import and export officials.

The project, which is scheduled to be completed in 2018, will change Trenitalia’s business model, allowing it to schedule more trips and make each one more profitable. The railway company will be able to better plan parts inventories and determine which lines are consistently performing poorly and need upgrades. The new system will save €100 million a year, according to ARC Advisory Group.

New business models continue to evolve as 3D printers become more sophisticated and affordable, making it possible to move the end of the supply chain closer to the customer. Companies can design parts and products in materials ranging from carbon fiber to chocolate and then print those items in their warehouse, at a conveniently located third-party vendor, or even on the client’s premises.

In addition to minimizing their shipping expenses and reducing fulfillment time, companies will be able to offer more personalized or customized items affordably in small quantities. For example, clothing retailer Ministry of Supply recently installed a 3D printer at its Boston store that enables it to make an article of clothing to a customer’s specifications in under 90 minutes, according to an article in Forbes.

This kind of highly distributed manufacturing has potential across many industries. It could even create a market for secure manufacturing for highly regulated sectors, allowing a manufacturer to transmit encrypted templates to printers in tightly protected locations, for example.

Meanwhile, organizations are investigating ways of using blockchain technology to authenticate, track and trace, automate, and otherwise manage transactions and interactions, both internally and within their vendor and customer networks. The ability to collect data, record it on the blockchain for immediate verification, and make that trustworthy data available for any application delivers indisputable value in any business context. The supply chain will be no exception.

Blockchain Is the Change Driver

The supply chain is configured as we know it today because it’s impossible to create a contract that accounts for every possible contingency. Consider cross-border financial transfers, which are so complex and must meet so many regulations that they require a tremendous number of intermediaries to plug the gaps: lawyers, accountants, customer service reps, warehouse operators, bankers, and more. By reducing that complexity, blockchain technology makes intermediaries less necessary—a transformation that is revolutionary even when measured only in cost savings.

“If you’re selling 100 items a minute, 24 hours a day, reducing the cost of the supply chain by just $1 per item saves you more than $52.5 million a year,” notes Dirk Lonser, SAP go-to-market leader at DXC Technology, an IT services company. “By replacing manual processes and multiple peer-to-peer connections through fax or e-mail with a single medium where everyone can exchange verified information instantaneously, blockchain will boost profit margins exponentially without raising prices or even increasing individual productivity.”

But the potential for blockchain extends far beyond cost cutting and streamlining, says Irfan Khan, CEO of supply chain management consulting and systems integration firm Bristlecone, a Mahindra Group company. It will give companies ways to differentiate.

“Blockchain will let enterprises more accurately trace faulty parts or products from end users back to factories for recalls,” Khan says. “It will streamline supplier onboarding, contracting, and management by creating an integrated platform that the company’s entire network can access in real time. It will give vendors secure, transparent visibility into inventory 24×7. And at a time when counterfeiting is a real concern in multiple industries, it will make it easy for both retailers and customers to check product authenticity.”

Blockchain allows all the critical steps of the supply chain to go electronic and become irrefutably verifiable by all the critical parties within minutes: the seller and buyer, banks, logistics carriers, and import and export officials. Although the key parts of the process remain the same as in today’s analog supply chain, performing them electronically with blockchain technology shortens each stage from hours or days to seconds while eliminating reams of wasteful paperwork. With goods moving that quickly, companies have ample room for designing new business models around manufacturing, service, and delivery.

Challenges on the Path to Adoption

For all this to work, however, the data on the blockchain must be correct from the beginning. The pills, produce, or parts on the delivery truck need to be the same as the items listed on the manifest at the loading dock. Every use case assumes that the data is accurate—and that will only happen when everything that’s manufactured is smart, connected, and able to self-verify automatically with the help of machine learning tuned to detect errors and potential fraud.

Companies are already seeing the possibilities of applying this bundle of emerging technologies to the supply chain. IDC projects that by 2021, at least 25% of Forbes Global 2000 (G2000) companies will use blockchain services as a foundation for digital trust at scale; 30% of top global manufacturers and retailers will do so by 2020. IDC also predicts that by 2020, up to 10% of pilot and production blockchain-distributed ledgers will incorporate data from IoT sensors.

Despite IDC’s optimism, though, the biggest barrier to adoption is the early stage level of enterprise use cases, particularly around blockchain. Currently, the sole significant enterprise blockchain production system is the virtual currency Bitcoin, which has unfortunately been tainted by its associations with speculation, dubious financial transactions, and the so-called dark web.

The technology is still in a sufficiently early stage that there’s significant uncertainty about its ability to handle the massive amounts of data a global enterprise supply chain generates daily. Never mind that it’s completely unregulated, with no global standard. There’s also a critical global shortage of experts who can explain emerging technologies like blockchain, the IoT, and machine learning to nontechnology industries and educate organizations in how the technologies can improve their supply chain processes. Finally, there is concern about how blockchain’s complex algorithms gobble computing power—and electricity (see “Blockchain Blackouts”).

Blockchain Blackouts

Blockchain is a power glutton. Can technology mediate the issue?

A major concern today is the enormous carbon footprint of the networks creating and solving the algorithmic problems that keep blockchains secure. Although virtual currency enthusiasts claim the problem is overstated, Michael Reed, head of blockchain technology for Intel, has been widely quoted as saying that the energy demands of blockchains are a significant drain on the world’s electricity resources.

Indeed, Wired magazine has estimated that by July 2019, the Bitcoin network alone will require more energy than the entire United States currently uses and that by February 2020 it will use as much electricity as the entire world does today.

Still, computing power is becoming more energy efficient by the day and sticking with paperwork will become too slow, so experts—Intel’s Reed among them—consider this a solvable problem.

“We don’t know yet what the market will adopt. In a decade, it might be status quo or best practice, or it could be the next Betamax, a great technology for which there was no demand,” Lonser says. “Even highly regulated industries that need greater transparency in the entire supply chain are moving fairly slowly.”

Blockchain will require acceptance by a critical mass of companies, governments, and other organizations before it displaces paper documentation. It’s a chicken-and-egg issue: multiple companies need to adopt these technologies at the same time so they can build a blockchain to exchange information, yet getting multiple companies to do anything simultaneously is a challenge. Some early initiatives are already underway, though:

  • A London-based startup called Everledger is using blockchain and IoT technology to track the provenance, ownership, and lifecycles of valuable assets. The company began by tracking diamonds from mine to jewelry using roughly 200 different characteristics, with a goal of stopping both the demand for and the supply of “conflict diamonds”—diamonds mined in war zones and sold to finance insurgencies. It has since expanded to cover wine, artwork, and other high-value items to prevent fraud and verify authenticity.
  • In September 2017, SAP announced the creation of its SAP Leonardo Blockchain Co-Innovation program, a group of 27 enterprise customers interested in co-innovating around blockchain and creating business buy-in. The diverse group of participants includes management and technology services companies Capgemini and Deloitte, cosmetics company Natura Cosméticos S.A., and Moog Inc., a manufacturer of precision motion control systems.
  • Two of Europe’s largest shipping ports—Rotterdam and Antwerp—are working on blockchain projects to streamline interaction with port customers. The Antwerp terminal authority says eliminating paperwork could cut the costs of container transport by as much as 50%.
  • The Chinese online shopping behemoth Alibaba is experimenting with blockchain to verify the authenticity of food products and catch counterfeits before they endanger people’s health and lives.
  • Technology and transportation executives have teamed up to create the Blockchain in Transport Alliance (BiTA), a forum for developing blockchain standards and education for the freight industry.

It’s likely that the first blockchain-based enterprise supply chain use case will emerge in the next year among companies that see it as an opportunity to bolster their legal compliance and improve business processes. Once that happens, expect others to follow.

Customers Will Expect Change

It’s only a matter of time before the supply chain becomes a competitive driver. The question for today’s enterprises is how to prepare for the shift. Customers are going to expect constant, granular visibility into their transactions and faster, more customized service every step of the way. Organizations will need to be ready to meet those expectations.

If organizations have manual business processes that could never be automated before, now is the time to see if it’s possible. Organizations that have made initial investments in emerging technologies are looking at how their pilot projects are paying off and where they might extend to the supply chain. They are starting to think creatively about how to combine technologies to offer a product, service, or business model not possible before.

A manufacturer will load a self-driving truck with a 3D printer capable of creating a customer’s ordered item en route to delivering it. A vendor will capture the market for a socially responsible product by allowing its customers to track the product’s production and verify that none of its subcontractors use slave labor. And a supermarket chain will win over customers by persuading them that their choice of supermarket is also a choice between being certain of what’s in their food and simply hoping that what’s on the label matches what’s inside.

At that point, a smart supply chain won’t just be a competitive edge. It will become a competitive necessity. D!


About the Authors

Gil Perez is Senior Vice President, Internet of Things and Digital Supply Chain, at SAP.

Tom Raftery is Global Vice President, Futurist, and Internet of Things Evangelist, at SAP.

Hans Thalbauer is Senior Vice President, Internet of Things and Digital Supply Chain, at SAP.

Dan Wellers is Global Lead, Digital Futures, at SAP.

Fawn Fitter is a freelance writer specializing in business and technology.

Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.

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CEO Priorities And Challenges In The Digital World

Dr. Chakib Bouhdary

Digital transformation is here, and it is moving fast. Companies are starting to realize the enormous power of digital technologies like artificial intelligence (AI), Internet of things (IoT) and blockchain. These technologies will drive massive opportunities—and threats—for every company, and they will impact all aspects of business, including the business model. In fact, business velocity has never been this fast, yet it will never be this slow again.

To move quickly, companies need to be clear on what they want to achieve through digital transformation and understand the possible roadblocks. Based on my meetings with customer executives across regions and industries, I have learned that CEOs often have the same three priorities and face the same three challenges:

1. Customer experience – No longer defined by omnichannel and personalized marketing.

Not surprisingly, 92 percent of digital leaders focus on customer experience. However, this is no longer just about omnichannel and personalized marketing – it is about the total customer experience. Businesses are realizing that they need to reimagine their value proposition and orchestrate changes across the value chain – from the first point of interaction to manufacturing, to shipment, to service – and be able to deliver the total customer experience. In some cases, it will even be necessary to change the core product or service itself.

2. Step change in productivity – Transform productivity and cost structure through digital technologies.

Businesses have been using technology to achieve growth for decades, but by combining emerging technologies, they can now achieve a significant productivity boost and reduce costs. For this to happen, companies must first identify the scenarios that will drive significant change in productivity, prioritize them based on value, and then determine the right technologies and solutions. Both Mckinsey and Boston Consulting Group expect a 15 to 30 percent improvement in productivity through digital advancements – blowing the doors off business-as-usual and its incremental productivity growth of 1 to 2 percent.

3. Employee engagement – Fostering a culture of innovation should be at the core of any business.

Companies are looking to create an environment that encourages creativity and innovation. Leaders are attracting the needed talent and building the right skill sets. Additionally, they aim for ways to attract a diverse workforce, improve collaborations, and empower employees – because engaged employees are crucial in order to achieve the best results. This Gallup study reveals that approximately 85 percent of employees worldwide are performing below their potential due to engagement issues.

As CEOs work towards achieving these three desired outcomes, they face some critical challenges that they must address. I define the top three challenges as follows: run vs. innovate, corporate cholesterol, and digital transformation roadmap.

1. Run vs. innovate – To be successful you must prioritize the future.

The foremost challenge that CEOs are facing is how they can keep running current profitable businesses while investing in future innovations. Quite often these two conflict as most executives mistakenly prioritize the first and spend much less time on the latter. This must change. CEOs and their management teams need to spend more time thinking about what digital is for them, discuss new ideas, and reimagine the future. According to Gartner, approximately 50 percent of boards are pushing their CEOs to make progress on digital. Although this is a promising sign, digital must become a priority on every CEOs agenda.

2. Corporate cholesterol – Do not let company culture get in the way of change.

The older the company is, the more stuck it likely is with policies, procedures, layers of management, and risk averseness. When a company’s own processes get in the way of change, that is what I call “corporate cholesterol.” CEOs need to change the culture, encourage cross-team collaborations, and bring in more diverse thinking to reduce the cholesterol levels. In fact, both Mckinsey and Capgemini conclude that culture is the number-one obstacle to digital effectiveness.

3. Digital transformation roadmap – Digital transformation is a journey without a destination.

Many CEOs struggle with their digital roadmap. Questions like: Where do I start? Can a CDO or another executive run this innovation for me? What is my three- to five-year roadmap? often come up during the conversations. Most companies think that there is a set roadmap, or a silver bullet, for digital transformation, but that is not the case. Digital transformation is a journey without a destination, and each company must start small, acquire the necessary skills and knowledge, and continue to innovate.

It is time to face the digital reality and make it a priority. According to KPMG, 70 percent to 80 percent of CEOs believe that the next three years are more critical for their company than the last fifty. And there is good reason to worry, as 75 percent of S&P 500 companies from 2012 will be replaced by 2027 at the current disruption rate.

Download this short executive document. 

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Dr. Chakib Bouhdary

About Dr. Chakib Bouhdary

Dr. Chakib Bouhdary is the Digital Transformation Officer at SAP. Chakib spearheads thought leadership for the SAP digital strategy and advises on the SAP business model, having led its transformation in 2010. He also engages with strategic customers and prospects on digital strategy and chairs Executive Digital Exchange (EDX), which is a global community of digital innovation leaders. Follow Chakib on LinkedIn and Twitter