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Canadian Cloud region brings efficiency, agility and AI to businesses

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Canada’s first Google Cloud region is open for business in Montreal. The new region, called “northamerica-northeast1”, is the 15th for Google worldwide, and the fifth in North America

With its Canadian offering Google joins Amazon Web Services (AWS), which has run a Canada-based region since 2016.

The new region could boost Google Cloud use, and cloud infrastructure in general, for Canadian businesses that have yet to make the switch.

Global Head of Solutions for Google Cloud Miles Ward said the new region will improve latency for Google Cloud’s Canadian customers.

“To be able to put this infrastructure into Montreal improves not just the performance in Montreal, but for all customers here in Canada,” said Ward.

Ottawa-based company Pythian provides consultations and services for international companies, and CEO of Pythian, Paul Vallée, spoke of the advantages that the new cloud region brings to companies looking to build their North American presence.

“You don’t need to put in us-east1 anymore, you can put it right here (in Montreal) and still have access to the entire low latency dynamics, and to the entire North American economy which is I think something new and something really exciting.”

Making the switch to cloud

Google’s new region adds to Canada’s ongoing innovation in the cloud infrastructure arena. According to Forbes, Canada is a major player in the push towards public cloud strategies. The federal government recently released its plan to move all unclassified data to the cloud.

But some hesitation remains. Many business owners will be weighing whether the benefits outweigh the costs and effort to transition to cloud options.

For Ward, the public cloud is all about agility, efficiency and remaining competitive in an innovative market.

“The reality is that the efficiency of these centralized resources is orders of magnitude higher. As a result, the companies that are able to take advantage of those tools just are more agile — able to make choices more quickly with lower risk, able to operate at lower cost. The result is this is the opportunity of this generation to leapfrog their competitors, to outcompete and to operate on a global stage. “

Vallée stressed that the speed of cloud-based project work is the key advantage for businesses — and that this new method of storing and sharing work outmaneuvers old ways of defining success.

“A lot of companies need to adopt cloud because of a velocity or a business agility imperative. They’re adopting the technology in order to win by beating their competitors to market — not win by saving pennies, and not win through a more efficient capital structure, but win because you beat them there and you built it before they could.”

Google Cloud offers modern, AI-friendly option to businesses

Having a data centre located in Montreal could also sway businesses with concerns about data sovereignty or latency to embrace Google Cloud.

According to Vallée, the new region is just the latest reason businesses will want to get on board with Google for their public cloud services, over competitors like AWS or Microsoft Azure.

“They have differentiated in two major ways versus the other cloud vendors,” said Vallée. “The first one is they have a very simplified, platform-as-service-oriented cloud. That’s their roots, that’s their DNA. The other cloud platforms really started with infrastructure-as-a-service and started tacking on platform features after the fact.

“Whereas Google went the opposite route. Their Cloud started with Google apps for MyDomain and… they’ve been expanding that so that now they’re roughly comparable (to other vendors), but have very much a platform centre, which is a much more modern approach to cloud infrastructure.”

Vallée also sees a big bonus to companies looking to develop AI-related products and tools within Google Cloud.

“The other dynamic that I think is really important is Google is really a leader in machine learning, and has the most compelling demonstrations of their machine learning capability in terms of their road map. Google is, I think by general concensus, far in the lead in terms of their machine learning innovation, what with their Google Brain project and Google DeepMind intiative.

“And what we’re seeing coming out of Google Brain and Google DeepMind is all being built into the Google Cloud API support over time. Which means that for future proofing your cloud investment, if you are doing an analytics-oriented, data science-oriented, machine learning or AI-oriented adoption of the public cloud, Google is really a nicely differentiated platform to make that kind of investment on.”

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#ScaleStrategy Q&A: Managing the Growth Bandwidth

Tech veteran Dean Hopkins on what it takes to scaleup — and down — in both startups and enterprise organizations

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Dean Hopkins, OneEleven
Dean Hopkins, Chief Growth Officer at OneEleven. - Photo by DX Journal
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#ScaleStrategy is produced by DX Journal and OneEleven. This editorial series delivers insights, advice, and practical recommendations to innovative and disruptive entrepreneurs and intrapreneurs. Read the first part of the interview with Dean Hopkins here. 

While working at McKinsey in the 1990s, tech veteran Dean Hopkins first stepped into the world of the internet.

“This was 1993. No internet existed as we know it,” says Hopkins, now the Chief Growth Officer at OneEleven, recalling how he discovered the work of Marc Andreessen. “At that point in time, he was demonstrating his early browser concept and talking about how the future of the internet was going to be huge. I caught the bug and decided I would leave McKinsey and start my first company called Cyberplex.”

After a bit of a bumpy start, Cyberplex scaled quickly. “Cyberplex tripled every year and grew to 500 people with $50 million in revenue and $975 million market cap,” he says.

Then 2001 hit. “That was the peak of the cycle followed by a trough. It was the biggest learning experience of my career. I had to descale the company to survive,” he says. Over seven quarters, Hopkins took the team from 500 to 50 and brought the company back to profitability. He then  transitioned Cyberplex to new leadership and moved on to his next challenge.

For the next 12 years, Hopkins worked as a management consultant with his own boutique firm that was focused on driving global transformation initiatives for companies such as Thomson Reuters and the Ontario Teachers’ Pension Plan Board.

With both entrepreneurial and intrapreneurial expertise, Hopkins is now applying his global growth skills to transform OneEleven’s unique scaleup model into a worldwide Scale-as-a-Service model.

Read what Hopkins has in store for OneEleven’s global growth.

We recently spoke to Hopkins about tough lessons he learned at  Cyberplex, how enterprise growth is different than startup growth, and how he’s applying these lessons to expanding the OneEleven model globally.

DX Journal: When you think back to your time when Cyberplex hit its inflection point, what did you learn about scaling?

Dean Hopkins: Culture and people were the two things that allowed us to handle both the steep trajectory both up and down. Those things got us through the crazy knee in the curve and probably more importantly, helped us when we needed to descale.

Attracting amazing people that became my partners in growth was the reason we were able to scale. I couldn’t have done it alone.

Secondly, we built a culture that was accustomed to scaling and had an appetite for growth. Our culture was about resilience, and scaling, and picking yourself up and dusting yourself off. We made it okay to make mistakes, then march on.

DX Journal: Why people and culture? Why isn’t it all of the other things?

Hopkins: It’s a great question. In a culture where the decision-making takes a long, protracted time, where risk-taking isn’t there, and where people have to analyze things to death before they can make a decision, scaling is impossible. People would crumble under the weight of scale because the number of things coming at them.

To scale, it’s important to trust that people are all working toward the same goals and are empowered to make decisions.

That’s where culture comes in. It becomes a culture that can tolerate the bandwidth of needs that come with growth. If I didn’t have both of those things — good people ready to make decisions and a culture where I allow them to do it — I would have failed to scale.

The other things like technology, offices, infrastructure, are secondary when you distill it down. Companies that are successful across different geographies, industries, offices, become that way through empowering their people and building a culture that tolerates growth.

DX Journal: When you moved out of Cyberplex and into Thomson Reuters and you were managing a large-scale transformation. How did you manage scale within an environment as big and complex as Thomson Reuters?

Hopkins: The first thing I noticed was pace slowed down dramatically. What used to take me a week or a month now took 6 to 8 or 12 months. Large organizations only have the capacity for so much change. Once I did get the ship to turn in a new direction, I moved a lot of people, revenue, cost, and dollars. I had to be patient enough to let it take hold. The experience was much more of a marathon where I had to think multiple chess moves ahead and let the game play out.

DX Journal: How do you know when to modify your approach or give up when dealing with  transformation in a large organization?

Hopkins: I didn’t do a great job of it at the beginning. I pushed an entrepreneurial agenda at an entrepreneurial pace, and very quickly ran headlong into blockers. I had to adapt and use an experimentation model. I tried different levels of throttle until I got to a point where the organization was willing to accept it. I learned to read the frustration on peoples’ faces saying “okay, no more, Dean. I can’t take any more of this” and built relationships with people where they were able to tell me that.

I was able to adapt and adjust my own style to better reflect the environment. Then over 12 years, I gradually increased the tolerance for risk-taking and for change within the organization. I would work with specific people to help them increase their ability to drive change. What was first gear early on, became second and third gear closer to the end of my tenure. Ultimately, the organization became much more comfortable with making change at a higher rate.

DX Journal: What’s a scale lesson you learned the hard way?

Hopkins: I learned to hire slowly and fire quickly based on fit. One rotten apple really can spoil the bunch. As part of this, I learned to listen very closely to my people. The people on my team knew about someone that didn’t fit long before I did. By listening, and taking quick action, I saw the immediate positive impact on culture.

Finally, I learned the value of getting out of the way. By fully trusting people, providing them good direction and support when needed, it activates them to reach their full potential. All of these were learned through many failed attempts, and I have the scar tissue to prove it.

DX Journal: What signals do you use to know you’re on the right path when you start to scale something and you’re trying to measure if it’s working?

Hopkins: One of the reasons we were able to survive at Cyberplex — both the growth and the decline — is that we had very good leading indicators of the business. We had invested heavily to try and understand what our funnel looked like, what our planned capacity was, and we had the metrics dialed in. Every month and every quarter, we constantly refined our ratios so we had a really good sense of what was coming. When things started falling off the cliff, we trusted our instruments and started acting accordingly.

Read more about Dean Hopkin’s plans for expanding OneEleven globally.

 

DX Journal covers the impact of digital transformation (DX) initiatives worldwide across multiple industries.

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#ScaleStrategy Q&A: OneEleven’s Chief Growth Officer on Building a Global Scaleup Knowledge Base

Dean Hopkins’ is aiming to build and deploy a Scale-as-a-Service model worldwide

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Dean Hopkins, OneEleven
Dean Hopkins, Chief Growth Officer at OneEleven. - Photo by DX Journal
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#ScaleStrategy is produced by DX Journal and OneEleven. This editorial series delivers insights, advice, and practical recommendations to innovative and disruptive entrepreneurs and intrapreneurs. Read the second part of the interview with Dean Hopkins here. 

“We’re being ambitious. We want to show scaling companies that we can scale, too,” said OneEleven’s Chief Growth Officer, Dean Hopkins, when the Toronto-based scaleup hub announced its plans to expand to Ottawa, Vancouver, London and Berlin in late 2018 and into 2019.

It’s an opportune time to expand globally as a scaleup hub.

According to CB Insights, total annual venture capital global funding “increased nearly 50% in 2017, as over $164B was invested across 11,042 deals. Deal activity was up by 11%, with both deal and dollar figures representing annual highs.”

As for 2018 so far, KPMG’s Venture Pulse Report says “for the fourth consecutive quarter, VC invested has exceeded $45 billion, and in the most recent quarter, just barely fallen shy of $50 billion once more.”

Hopkins is excited to walk the scaleup talk once again.

A tech scene veteran, Hopkins was the CEO & Co-founder of Cyberplex for more than a decade where he grew the organization from a startup to a public company with nearly $1 billion in market capitalization. During his career at Cyberplex, he also successfully managed the company through a major downsizing as the tech bubble collapsed and transitioned it to new leadership where the company enjoyed another round of growth.

Prior to joining OneEleven as Chief Growth Officer, Hopkins ran a boutique management consulting firm he founded in 2006 to drive transformation initiatives on a global basis for clients such as Thomson Reuters and the Ontario Teachers’ Pension Plan Board.

We caught up with Hopkins to talk about scaling lessons, OneEleven’s growth plans and developing the world’s leading source of scaleup knowledge.

DX Journal: You have extensive experience scaling from both an entrepreneurial and intrapreneurial perspective. What are some of the lessons you’ve learned?

Dean Hopkins: First off, it’s all about people. Attracting amazing people that became my partners in growth was the reason we were able to scale. I couldn’t have done it alone. ‘Hire great people and get out of their way’ became my mantra — even to this day.

The second ingredient to scale was culture. We had built a culture that was accustomed to scaling and had an appetite for growth. Our culture was about resilience, and scaling, and picking yourself up and dusting yourself off. We made it okay to make mistakes, then march on.

Read our interview with Dean Hopkins on his scaleup experience at Cyberplex and his transformational work in Thomson Reuters.

DX Journal: What have you learned about scaling at OneEleven?

Hopkins: Early on after I joined OneEleven, I sat in on a community lunch with about 300 people from all the member companies. At this lunch, new members are brought up in front of the crowd to say a little about their company. Then 300 people welcome them with cheers — a lot of love goes their way. After that, others come up to talk about their big wins, like raising money, landing a big customer or completing a big launch. And again, 300 people applaud and celebrate them. Well, I remember sitting there thinking, ‘where was this when I was building Cyberplex?’ I was in a hovel by myself toiling away with no community other than people that I would lean on as advisors. I never had the kind of kudos, support, warmth, love, resources that these companies have at OneEleven, and that’s when things clicked for me. This is what community is. A lot of people talk about community, but to actually see it viscerally done, made me realize I needed to recreate it in other geographies.

What we’re trying to do is get a group of companies — all individually pursuing their dreams, but collectively working together — to make sure that each other are successful.

DX Journal: You’re focused taking this OneEleven scaleup initiative global. How do you assess where you need to be?

Hopkins: A big aha moment for me around OneEleven was getting the Startup Genome report. I looked at our success in Toronto and yet our city was number 14 or 15 on their list. I said, ‘wait a minute, OneEleven is working incredibly well in the 15th best market?! What if we took OneEleven and built it out to some of the top 10 markets? That’s what led to the business plan we’re currently executing.

From there, I overlaid our partner Oxford Properties into the mix. As a large global real estate firm, this gave me the first 4 markets to go after — London, Berlin, Boston, Vancouver. We’re studying each market, mapping the ecosystem, understanding who the players are, comparing it to Toronto, figuring out what the differences and similarities are and then plotting our entry. Over the next year, we’ll be in each of those markets.

The approach to entering each of these markets will be subtly different depending on character of the market. We’ve invested a lot in meeting the community, understanding who does what to whom and how we can add value. By the time we launch in those markets, we’ll already have a reputation built up because we’ll have spent some money to support the local ecosystem. We’ll have brought some value to some of the companies there by helping them maybe come to Canada or come to one of our other markets. I view it as kind of putting some karma in the bank before we even launch in each.

DX Journal: When OneEleven enters a geography, what’s the benefit to companies and communities located there?

Hopkins: From our perspective, there are 3 key benefits to having OneEleven in your city.

The first is that we’re building the global knowledge base of scale. Each community we add is bringing a new rich set of perspectives on how to scaleup businesses. We then make that available to everybody in the peer community.

The second benefit is for the companies in each geography is an easier path into other markets through our growing global ecosystem. If a company in Toronto wants to go to London, they can access continental Europe because we have assets and relationships in Berlin.

Lastly, we are building what we call Scale-as-a-Service. This is a set of capabilities — much like you’d find on Amazon but only dedicated to scaling — that help people with the common challenges of scaling. This only gets richer and more pressure-tested the more markets we serve. We’ll have the best set of Scale-as-a-Service capabilities of anybody out there because we’re activating across companies in multiple markets.

DX Journal: Speaking of a scaleup knowledge base, as a company grows are there one or two things that really become important?

Hopkins: Entrepreneurs 100% need to think about getting away from the technical, engineering-focused orientation of their early stages. They should focus their time disproportionately on building their channel to market, building their go-to market, building their customer base, building their way in which revenue is going to come to them. Build protected paths to market that are defendable, because that’s really where the source of competitive advantage is. An entrepreneur could have the best product in the world, but if he or she can’t get it to market the company is dead. The companies that figure out how to build proprietary go-to market or protected go-to market are the ones that end up winning.

The second thing is not to underestimate the complexity of the people equation. Most founders who have reached the scaleup phase realize they need to think about organizational design, career paths for employees and what the organization will look like in 3 years. If they don’t, they will have a churn problem, which is very expensive and disruptive for the business.

The third thing is preparing for the next big round of funding. Generally speaking, people underestimate the amount of relationship building and preparation work needed. It probably takes a year or so to get ready properly. We’re trying to help companies diagnose where they are, how much runway they need and prepare them adequately for the big round, which is another league up from what they’re normally used to.

DX Journal: What books have you read that helped you get through your scaleup journey?

Hopkins: I love Jim Collins. Anybody who hasn’t read Built to Last, shame on you! [Laughs] You need to read it and Good to Great.

I’m also a big believer in a book called The Alchemist by Paulo Coelho. It’s all about finding personal motivation and that gets you through some very challenging times when you’re leading a company. There’s a book called The Speed of Trust by Steven Covey, which is all about how to engineer trust in your organization, which is essential at this level. Lastly, Crossing the Chasm by Geoffrey A. Moore. A seminal work on how you market and build a go-to market strategy.

DX Journal covers the impact of digital transformation (DX) initiatives worldwide across multiple industries.

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Businesses should ‘follow the money’ when adopting AI

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A June report from the McKinsey Global Institute (MGI) found that, overall, artificial intelligence adoption is still slow; only 20 per cent of “AI-aware” businesses say they are adopters.

The MGI report on AI discussed the difference in AI investment and adoption, with investment in AI technologies experiencing a threefold external investment growth since 2013. Compared to that figure, 41 per cent of firms told MGI that they are uncertain about the benefits, and within that 20 per cent of adopters, 10 per cent are adopters of three or more AI-backed technologies.

new report from Harvard Business Review on the two major business potentials of AI said that while this may be the trend on average, “senior executives know that AI isn’t just hype.”

HBR attributes some of the hesitancy to adoption to business leaders not being sure where they should be applying AI, and after McKinsey researchers Michael Chui, Nicolaus Henke and Mehdi Miremadi took a closer look at 400 AI use cases from 19 different industries, and nine business functions, they found that the question of where to put AI to work in a business is a matter of playing “follow the money.”

“The business areas that traditionally provide the most value to companies tend to be the areas where AI can have the biggest impact,” the report explains.

The two areas that HBR found to the implementation of AI to have the biggest impact are: supply-chain management/manufacturing and marketing and sales.

Chui, Henke and Miremad also found that another way for businesses to find an area to introduce AI is “to simply look at the functions that are already taking advantage of traditional analytics techniques.” Meaning that business leaders should look to apply AI to parts of the company where neural network techniques could provide a higher performance, or “generate additional insights and applications.”

According to the MGI report, companies that have a low AI adoption rate are in the education, health care, and travel/ tourism sectors.

In a previous Digital Journal article on how hospitality brands can undergo digital transformation, it was stressed that “hospitality brands can use new technologies to make their businesses hyper guest-focused.” Utilizing AI for marketing and sales purposes is just one way of making that happen.

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