Digital Disruption is commonplace these days. It occurs so frequently that when it happens it’s not as impressive as it once was. However, it’s an incessant reminder to the C-suite of many traditional organizations of the need to transform in order to keep pace with a market that is unpredictable and in an environment that is far from stable.
Alfredo C. Tan, the newly-minted Chief Digital and Innovation Officer at WestJet, has been tasked with driving this new direction for the Canadian airline as it moves to become a global success story. In just two decades, WestJet established more than 13,000 employees, over 100 destinations in North America, Central America, the Caribbean and Europe and an additional 175 destinations in over 20 countries through partnerships.
As with almost all industries, the global tourism and travel landscape has witnessed significant changes. This $7.6 trillion sector has seen a pronounced shift in its business model, in part because of disruptors like Airbnb and Uber. The airline industry will not be immune. Crippled by legacy operations and heavy regulation, the desire to transform is not a feat that is surmountable in a short period of time.
This 2017 report published by the Centre for Aviation acknowledged these changes:
Above any other industry, airlines are captured within an arcane regulatory framework designed 70 years ago, and whose purpose was to achieve little else than protect against new entry. It is a capital intensive heavily unionized industry, and it is dominated by legacy models still focused on buying and flying expensive metal. But at its heart the airline offering is just another consumer retail product. As such, it is just as susceptible to upheaval… The airline industry as we know it will be unrecognizable by 2025, as fundamental features are uprooted. The process will be accelerated because of the confluence of disruption in each of the key aspects of commercial aviation: flying and selling.
I had the pleasure of sitting down with Alfredo C. Tan to explore his journey to WestJet and his vision to instigate some necessary upheaval in an already accomplished organization.
Obsessed to Join the Movement to Empower the Internet Generation
Alfredo remembers Cisco Systems “Empowering the Internet Generation” commercials. The powerful message depicted a world transformed by this eventual connectivity across networks and markets. As a student of forensic science and biology at the time, he felt he had missed the opportunity to be part of this incredible wave of dot.com companies being born.
When he graduated, he read an article in Fortune Magazine about top business school graduates turning down blue chip companies to go chase the new Gold Rush in Silicon Valley. Not one to let another opportunity go by, Alfredo learned how to code and immersed himself in computer and technical courses. Soon he landed at Bell Nexia in Systems Engineering and Design where he eventually led a team of engineers to help restore connectivity between telcos in NYC and Toronto during the World Trade Centre disaster. Along the way, Alfredo had looked to mentors willing to teach him:
Most things in the professional world you can excel at without a formal education in that field. With enough mentorship, intellectual curiosity, aptitude, grit and passion you can find success almost anywhere.
Whether it was Bell Canada where he learned to build large scale strategic alliances, enterprise marketing and strategy, or at MSN.ca where he was introduced to the disruptive world of online advertising, media sales and internet marketing, or at Yahoo! Inc. working on Mobile, Search, and corporate partnerships, Alfredo’s journey exemplified this learning mantra throughout his career.
Facebook: The Platform that Changed Everything
If you could see the future and know within a decade your company has just entered the S&P500, you would not hesitate to join. In 2008, this was hardly evident, and Alfredo grappled with the decision to leave an amazing job with endless opportunities within a company that was still an internet powerhouse for a social network that was perceived to be overvalued, had no clear monetization strategy, no real market differentiator and one that could have easily gone by the wayside like MySpace or Friendster. The defining moment for him came when he returned from a trip in 2008. As he remembers,
Before I returned from a trip in 2007, I exchanged email addresses among those I had just met. And by the time I went on a trip in 2008, everyone exchanged ONLY Facebook IDs. Within 12 months the movement from email to Facebook was unreal. What Facebook was really building was identity at scale. What it really has is people – 2.2 billion people. And as it continues to grow, it continues to be unassailable.
He chose to venture to Facebook despite all the guidance and advice otherwise. He remained there for 8 years, where he spent the last two years working with the leadership teams in the high growth markets of South East Asia and Latin America. The learnings were life changing and career defining.
Why Can’t Traditional Businesses Adapt to Market Changes?
For all the gains Facebook and social networks have made globally, business has still not fully embraced the changes required to keep pace with the dynamic market.
Alfredo points to disruptors like Google, Netflix, Facebook, Microsoft, Uber, Apple and Amazon. These companies have a different way of building their innovation culture. What’s common among them?
- They move with a sense of urgency
- They worship velocity
- They are unafraid of change
This is a polarized view of how traditional companies operate.
As the Chief Digital and Innovation Officer of WestJet, Alfredo’s experiences make him ripe for the challenge ahead. WestJet recognizes the need for change and a culture that supports the changes required. As a traditional company, it behaves much differently than the environments Alfredo was used to. Coming from the tech space, there is a common understanding, a common way of thinking because technology isn’t something you need to convince people to invest in.
It’s hard-coded in the DNA of the company.
In most traditional companies digital is not foundational to the success of the company. Success comes from other practices within the organization. The challenge becomes convincing a group of people in a company to invest in what you believe to be true.
Alfredo would argue the majority of leaders and employees understand the world has dramatically changed but it’s not clear how digital could be a competitive advantage. There’s a process in education and winning the hearts and minds of people to “believe it before they see it”. The executives were sold on change as the new normal at WestJet. Alfredo was inspired by the genuine interest and motivation by the employees to make this a reality.
WestJet’s First Ever Hackathon
Thinking differently takes time. You can’t make the assumption that people understand simply by saying. Just as he continues to learn about an infinitely complex industry, Alfredo and his team, in turn, need to educate and tell the story in a way that helps the entire company understand the impact of digital and innovation on the business, without the jargon and without the hype.
This came to fruition soon enough. WestJet’s VP of Loyalty, d’Arcy Monaghan and Rhonda Reynolds, Product Development Manager, approached Alfredo about developing solutions for the premium traveler, which could then trickle down to all of WestJet’s guests. Alfredo had only been in the job a few weeks and didn’t feel he and his already-constrained team were in a position to solve the problem on their own.
While the original idea was to hold a brainstorm among a group of people from various departments, it quickly morphed to include some of Alfredo’s friends from the tech industry. As more people heard about it, the more they wanted to participate. The kernel grew into this idea of a full day hackathon, a competition to develop a seamless premium guest experience and #HackInTheHangar was born.
Alfredo invited some of the biggest tech companies and systems integrators like Adobe, Facebook, Amazon, Deloitte Digital, Google, Panasonic Avionics, Twitter, LinkedIn, Snapchat, Hootsuite, IBM, Salesforce, Huge Inc. In all, 17 companies and their 120 people from technical, creative and design backgrounds were paired with 37 WestJetters and a dozen of WestJet’s premium travelers to participate in this one-day event. As Alfredo points out:
The initial, very simple idea gave birth to this movement in the company which aimed to answer a few key questions:
- How can we show 13,000 people that we can solve problems in a different way and co-create new experiences?
- More importantly, at a greater velocity:
- How do we get non-technical people to solve problems in a hack culture?
- How do we gain the respect of the global tech community to be be inspired and partner with us in our digital and innovation mandate and co-create the future of travel?
- How do I win the support from key executives in the organization who I would need in order to succeed?
The judges for the event were chosen with care and purpose. The objective was to demonstrate the amazing thinking and solutions that were developed within one day, and to have them understand and evangelize Alfredo’s vision for the company.
The Digital Company that Just Happens to Fly Planes
By the end of the day, the executives at WestJet needed little convincing. Louis Saint-Cyr, the Vice President of Guest Experience indicated that airlines with legacy behaviors limit what they can do for the customer. The hackathon revealed WestJet’s need to align with what will be an increasingly digital guest journey. He validated the industry’s current push and pull between innovation and regulation which has produced operating limitations. Despite this, Louis saw huge possibilities:
This hackathon revealed how we can innovate around these structural limitations. How do we digitally empower the front lines and augment soft skills WestJetters are known for with technology to tailor guest experiences?
…Think of the hurdles that go into a customer’s travel journey: the time to get to the airport, the waiting times for bags, the check-in – things that can add stress. By leveraging the emotional framework of social media and aligning it to the guest journey, we can address these hurdles in a direct way to transform air travel for guests.
…Overall, by amalgamating guest profiles with their expectations to what they’re experiencing on board, on the website, and in the airport we can make significant strides in the guest experience.
CEO of WestJet, Ed Sims closed the day and declared that in 24 months, WestJet will be a digital company that happens to fly planes. It sent a signal to the tech community and the leadership team that this hackathon wasn’t just a side project; this will literally be the future of the company.
WestJet’s first hackathon represents a cultural shift toward more innovative thinking at WestJet. We will move fast, learn fast and build fast. We now have an opportunity to do things differently and to innovate in the travel space like has never been done before. Our goal is to have products way ahead of guests’ expectations.” ~Ed Sims, WestJet President and CEO
Alfredo’s next steps?
The hackathon and the thinking it surfaced are all theatre and theory until you start to build. We have to build the capabilities that we saw were compelling plus other capabilities we will investigate in the future. Innovation is a cultural mindset more than anything else but it comes from building.
These brilliant ideas will lay the groundwork for developing those capabilities over the next five years. In addition, given the incredible demand to repeat more events after the hackathon WestJet is planning to host an annual event with different themes.
In a short period, the acceptance the hackathon generated, instilled an idea to embed the hack culture into the company as a way of addressing problems and empowering cross-functional groups to self-organize and invent solutions in a confined period of time.
We’ll find a way to make it pervasive in the organization so a flight crew member who wants to fix a process can gather a group of people to create a solution then present that for budget approval in a matter of days. It’s bringing the hackathon to smaller scale, smaller team sizes, with less fanfare. Hopefully, that will influence 13,000 people to start to think this way.
We are just getting started… In the end, I would have failed in my job if I was the only one responsible for the digital and innovation culture. It’s for all WestJetters to embrace it and the future.
For someone whose mantra is to be curious and continue learning, Alfredo C. Tan, in the first 90 days, has pushed the organization to think differently, learn new ways of doing things, and challenge the limits of their imagination.
Hessie Jones is the Founder of ArCompany advocating AI readiness, education and the ethical distribution of AI. She is also Director for the International Council, Global Privacy and Security by Design. As a seasoned digital strategist, author, tech geek and data junkie, she has spent the last 18 years on the internet at Yahoo!, Aegis Media, CIBC, and Citi, as well as tech startups including Cerebri, OverlayTV and Jugnoo. Hessie saw things change rapidly when search and social started to change the game for advertising and decided to figure out the way new market dynamics would change corporate environments forever: in process, in culture and in mindset. She launched her own business, ArCompany in social intelligence, and now, AI readiness. Through the weekly think tank discussions her team curated, she surfaced the generational divide in this changing technology landscape across a multitude of topics. Hessie is also a regular contributor to Towards Data Science on Medium and Cognitive World publications.
This article solely represents my views and in no way reflects those of DXJournal. Please feel free to contact me firstname.lastname@example.org
Robot delivery: Bots will be bringing parcels to your home
Ford, FedEx and Amazon are each at an advanced stage with autonomous robot delivery vehicles, designed to bring packages to the doors of businesses and homes. Several successful pilots have been completed.
Each robot looks different but the objective is similar — getting a package to a customer using an autonomous machine. The aim of these new robot delivery tools is to boost efficiency and eliminate the need to pay people to carry out the final part of the delivery process.
Ford / Agility Robotics
Ford, more commonly associated with cars and trucks, is partnering with legged locomotion specialist Agility Robotics to assess how self-driving car deliveries can be improved. The project objective is to ensure self-driving vehicles can accomplish something that’s been very difficult to accomplish: carrying out the last step of the delivery, from the car to the recipient’s front door.
The two companies hope the answer is a two-legged robot called “Digit”.
Digit has been designed to approximate the look and walk of a human. The robot is constructed from lightweight material and it is capable of lifting packages that weigh up to 40 pounds. In tests, Digit has been shown to be capable of going up and down stairs and to negotiate uneven terrain, thanks to the use of LiDAR and stereo cameras.
The courier delivery services company FedEx is developing an autonomous delivery robot designed to assist retailers make same-day and last-mile deliveries to their customers. The device is called the FedEx SameDay Bot, and the aim is to deliver packages by bot directly to customers’ homes or businesses the same day. The device has been developed in collaboration with DEKA Development & Research Corp., run by Dean Kamen, the inventor of the Segway.
The FedEx device is the most adventurous of the three, in that it will cross roads and is destined to cover longer distances. The interaction with roads is supported by machine-learning algorithms to help the robot to detect and avoid obstacles, plot a safe path, and to follow road and safety rules.
Amazon’s autonomous delivery robots are about to begin rolling out on California sidewalks. Amazon Scout will begin with delivering packages to the company’s Prime customers residing in Southern California. The new Amazon device will work during daylight hours, providing small and medium-sized packages to customers. The Amazon Scout is a six-wheeled electric-powered vehicle around the size of a small cooler. In terms of movement, the Scout rolls along sidewalks at what’s described as a walking pace.
Amazon began testing out the Scout in January 2019, running a pilot program using six machines to deliver packages in Snohomish County, Washington. Vice president of Amazon Scout Sean Scott said: “We developed Amazon Scout at our research and development lab in Seattle, ensuring the devices can safely and efficiently navigate around pets, pedestrians and anything else in their path.”
Following the success of the pilot — where the Scout autonomously navigated the various obstacles commonly found in residential neighborhoods like trashcans, skateboards, lawn chairs, the occasional snow blower and more — the device is ready for a wider launch.
The wider launch will feature a small number of Amazon Scout devices, delivering Monday through Friday, during daylight hours in the Irvine area of California, according to Smart2Zero. Customers will order items as they would normally, but in some cases their Amazon packages will be delivered by an Amazon Scout. To make sure things go smoothly, each Scout will initially be accompanied by a human “Amazon Scout Ambassador.”
Amazon adds fear detection and age ranges to its facial-recognition tech as the Border Patrol looks to award a $950 million contract
- Amazon Web Services has added several new features to its facial-recognition technology, Rekognition.
- This includes expanded age-recognition capabilities and the new ability to recognize fear.
- Rekognition is a controversial technology and has been the subject of much criticism and protests — from both inside and outside Amazon.
- These new features drew some flack from commenters on Twitter.
- Meanwhile, the US Customers and Border Patrol is looking for quotes on a sweeping new border protection system that includes more facial-recognition tech.
Amazon Web Services has expanded the capabilities of its controversial facial-recognition technology called Rekognition.
It now better detects more age ranges and it can also detect fear, the company announced in a blog post on Monday.
The company explained (emphasis ours):
“Today, we are launching accuracy and functionality improvements to our face analysis features. Face analysis generates metadata about detected faces in the form of gender, age range, emotions, attributes such as ‘Smile’, face pose, face image quality and face landmarks. With this release, we have further improved the accuracy of gender identification. In addition, we have improved accuracy for emotion detection (for all 7 emotions: ‘Happy’, ‘Sad’, ‘Angry’, ‘Surprised’, ‘Disgusted’, ‘Calm’ and ‘Confused’) and added a new emotion: ‘Fear’.Lastly, we have improved age range estimation accuracy; you also get narrower age ranges across most age groups.”
Earlier this month AWS also announced that Rekognition can now detect violent content such as blood, wounds, weapons, self-injury, corpses, as well as sexually explicit content.
But it was the news of more age ranges and fear detection that was met with comments on Twitter.
Just last month several protesters interrupted Amazon AWS CTO Werner Vogels during a keynote speech at an AWS conference in New York.
They were protesting AWS’s work with the U.S. Immigration and Customs Enforcement (ICE) and the family separation policy at the Southern Border. Amazon hasn’t acknowledged whether ICE uses its Rekognition technology, but the company did meet with ICE officials to pitch its facial-recognition tech, among other AWS services, as revealed by emails between Amazon and various government officials obtained by the American Civil Liberties Union Foundations.
Amazon’s Rekognition has come under fire from a wide range of groups who want the company to stop selling it to law enforcement agencies. In April, AI experts penned an open letter to Amazon about it. Civil rights group have protested it. 100 Amazon employees sent a letter to management last year asking the company to stop selling Rekognition to law enforcement. Another 500 signed a letter this year asking Amazon to stop working with ICE altogether.
“AWS comes under fire for Rekognition sales to the federal government, who in turn is building concentration camps for children, and AWS’s response is to improve ‘age range estimation’ and ‘fear detection’ in the service? Are you f– KIDDING ME?!” tweeted Corey Quinn from the Duckbill Group, a consultant that helps companies manage their AWS bill. Quinn also hosts theScreaming in the Cloud podcast.
Another developer tweeted, “In 25 years we’re going to be talking about how AWS handled this situation in the same way we talk about how IBM enabled the holocaust. Every engineer and ML researcher who worked on this should be ashamed of themselves.”
The CBP is looking to buy more facial-recognition tech
Meanwhile, the U.S. Customs and Border Protection (CBP), a sister agency to ICE, has put out a new request for quotes on a sweeping new border-security system that includes expanded use of facial-recognition technology.
“Integration of facial recognition technologies is intended throughout all passenger applications,” the RFQ documents say.
The CBP already uses facial recognition at various airports, such as in Mexico City, where it matches passenger’s faces with photos taken from their passports or other government documents, it says.
And the CBP uses other biometric information, such as taking fingerprints of people at the border if it suspects that they are entering the country illegally, it says.
“CBP’s future vision for biometric exit is to build the technology nationwide using cloud computing,” the agency wrote in a 2017 article about the use of facial recognition and finger-print tech.
This new contract for new border security technologies is expected to begin in early 2020 and could be worth $950 million over its lifespan, according to the RFQ documents.
This article was originally published on Business Insider. Copyright 2019.
IBM launches ‘Trust Your Supplier’ blockchain initiative
IBM and Chainyard have announced a new blockchain network called Trust Your Supplier, which is a blockchain-based platform that simplifies supply chain management and improves supplier qualification, validation, onboarding and life cycle information management.
IBM sees the new blockchain-based network as critical to the continued growth and advancement of the global supply chain industry. The technology provides a digital passport for supplier identity on the blockchain. This will enable suppliers to share information with any permissioned buyer on the network to make qualifying, validating and managing new suppliers easier and less time-consuming.
The Trust Your Supplier platform is being pioneered by several leading companies, such as Anheuser-Busch InBev, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone. Each of these founding participants is in the process of onboarding their suppliers. These are leading companies across industries like technology, telecommunications, pharmaceuticals and food and beverage.
By eliminating manual, time-consuming processes, the Trust Your Supplier technology aims to help reduce the risk of fraud and errors by establishing a connected environment among global suppliers. With more than 18,500 global suppliers, IBM itself will begin using and onboarding 4,000 of its North American suppliers to the Trust Your Supplier network. This is expected to be completed during quarter 3 of 2019.
Convening a network of leading companies with shared challenges and goals, Trust Your Supplier has been designed to assist companies working across multiple industries to design and implement more efficient processes to solve a common problem in relation to the supply chain.
Representing one of the first companies to take up the service, Sanjay Mehta, Vice President Procurement, Nokia, states: “Working with IBM and Chainyard on this blockchain initiative represents a great opportunity for Nokia to further enhance our suppliers’ experience and optimize the onboarding process (process of integrating a new supplier into an organization’s network). Using the latest technology to address a classical challenge will be of benefit for everyone, and further increase the speed of using innovative solutions.”
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