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WINTER 2018 SECURE THE FUTURE

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EDITORIAL PUBLISHING
Editor in Chief Aaron Lazenby Publisher and Audience Development Director Karin Kinnear
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Managing Editor Jan Rogers Audience Development Manager Jennifer S. Kurtz
Deputy Editor Blair Campbell jennifer.s.kurtz@oracle.com
Contributors Sasha Banks-Louie, David Baum, Bobbie Social Media Manager Taline Vertians Felix
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WINTER 2018
INSIDE ORACLE
16
IT’s Bold Future
34 Supercharged cloud
applications, the
LEDGER TEST machine learning
Oracle Blockchain Cloud revolution, and
Service helps cloud-native much more show-
fintech Biz2Credit provide cased at Oracle
CONTENTS

billions of dollars in mer- OpenWorld 2017


chant cash advances. in San Francisco,
California

EDITOR’S NOTE PERSPECTIVES


5 23
Secure the Future Automatic. Secure.
Enterprises need a Integrated.
cybersecurity strat- Three ways
egy to protect their Oracle Database
valuable information 18c can improve
assets. data security
58
NEED TO KNOW Cybersecurity’s
10 New Normal
The Big Question: A new approach to
Securing Freedom. cybersecurity that
In the Future, What creates a protec-
Will Be Worth tive foundation for
Protecting? the future

3 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: PAUL S. HOWELL


FEATURES BIG IDEAS
WINTER 2018

28 10
28 51
Ahead of the Curve Protective Measures
Oracle President Nimble technology
Thomas Kurian solutions can defend
says Oracle Cloud against today’s
is at the front of ever-changing
CONTENTS

today’s cloud mar- security threats.


ket. But how does
that help customers 60
adopt tomorrow’s Evolving the
technologies? Enterprise
Award-winning
43 CIOs discuss how
People Data Central emerging tech-
Health benefits nologies require
company Anthem changes in focus,
builds analyt- strategy, culture,
XX ics portal and and infrastructure
team to improve
talent decisions.

16

4 PROFIT MAGAZINE WINTER 2018 PHOTOGR APHS AND ILLUSTR ATION: K ATELYN TUCKER /OR ANGE PHOTOGR APHY, WES ROWELL,SANDR A GARCIA
WINTER 2018

Recent headlines demonstrate the need


for managers to secure tomorrow, today.

In 2016, the global econ- Future,” was inspired by these


EDITOR’S NOTE

omy lost more than US$450 distressing numbers—along


billion to cybercrime. That’s with recent breakthrough
an increase of US$336 billion announcements from Oracle
since 2011. and some forward-thinking
Today, managers believe customer case studies. As
that they are not ready for the threats multiply and the secu-
growing cybersecurity chal- rity landscape evolves, enter-
lenge—74 percent feel that prises need a strategy to pro-
existing tools are not sufficient tect their valuable information
for a hybrid cloud environment. assets and plan for the disrup-
On top of that, by 2019 tions (and opportunities) the
there will be at least 2 mil- future holds.
lion unfilled security jobs The theme starts with a

SECURE THE worldwide.


So enterprises face a real
predicament: threats are ris-
big announcement Oracle
made at Oracle OpenWorld
back in October: autono-

FUTURE ing and have a real cost, but


managers generally lack the
staff and the confidence in the
mous database functional-
ity in the upcoming Oracle
Database 18c. Oracle
investments they've made to Executive Chairman and Chief
AARON LAZENBY, Editor in Chief, Profit mitigate new threats. Technology Officer Larry
The current issue of Profit, Ellison announced the world’s
aaron.lazenby@oracle.com
with the theme of “Secure the first “self-driving” database

5 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: BOB ADLER / THE VERBATIM AGENCY
onstage at the event. This topic
WINTER 2018

is addressed in this issue by both


Juan Loaiza, senior vice president
of database systems technology
As threats multiply and the security landscape evolves,
at Oracle and Michelle Malcher, enterprises need a strategy to protect their valuable
Oracle ACE Director and secu-
rity architect at Extreme Scale
information assets and plan for the disruptions (and
EDITOR’S NOTE

Solutions The upshot: automated opportunities) the future holds.


database technology will help
close the gap created by all of
those open security jobs, automat-
ically addressing some of the most cally apply remedies as needed. In our fast-moving, results-now
basic security vulnerabilities. But securing the future also world, it can be hard to take the
Data security is one aspect means seeing the new opportu- time to protect against a crisis
of protecting the enterprise nities that the volatile threat envi- that hasn’t already arrived. But
against tomorrow’s threats. ronment presents and building recent headlines demonstrate
Another is taking an enterprise- tomorrow’s business based on the need for managers to secure
wide view of security, especially the insight you can derive today. tomorrow, today. Security chal-
as on-premises systems interact Biz2Credit, featured on the cover lenges are expanding as well-
increasingly with third-party sys- of this issue of Profit, has done defined network perimeters give
tems in the cloud. (See Protective a very interesting job of this by way to highly distributed enter-
Measures.) This means under- using blockchain technology to prise ecosystems created by pub-
standing how cloud-ready iden- help rationalize disparate bor- lic and hybrid clouds and mobile
tity management solutions can rower data that lives in multiple applications. IT and security pro-
track and limit user access and organizations. Blockchain helps fessionals must closely manage
how a cloud-access security bro- protect and validate that sensitive data as it flows to these far-flung
ker can monitor the nature of the user data and has created a new applications. But that’s not easy.
data being transferred in and out business model for the growing Modern data centers are highly
of the enterprise. In both cases, company—a testament to the role complex, and one small vulnera-
artificial intelligence can set a that novelty and innovation can bility, such as a previously identi-
baseline for normal user behavior, play in protecting the businesses fied bug that’s yet to be fixed, can
identify exceptions, and automati- of the future. be devastating.

6 PROFIT MAGAZINE WINTER 2018


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Diving Deeper into


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Machine intelligence and mixed reality unlock insight and agility

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e’re surrounded by more new approaches to engage with ties that are hidden deep within an
data than ever, but for their information, and transform organization’s stored data. They
many organizations, insights into action. Emerging tech- can provide visibility into what has
its potential still remains elusive. nologies like machine intelligence happened in the past, what’s hap-
Companies have a wealth of data (MI) and mixed reality are pointing pening now, and what may happen
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like reading and writing to databases and ENABLE A MORE AGILE SUPPLY CHAIN The bot could learn where to look for poten-
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“The goal should be evolving engagement — • Inventory details
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If an exception turns up, such as a pur-
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could alert the SC executive, and automati-
and amplify their ability to use it.” cally follow up with an email to a purchasing
manager asking for details.
MI gives the SC executive instant visi-
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That interface capability makes Oracle operational performance, and better ways to keeps her informed of potential disruptions
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industry-leading RPA software platforms. Bringing together MI with Oracle Cloud SC bot can be conigured and trained to
Recent use cases have shown that ERP can deliver real-time views of supply learn from past experience, it can continue
effectively layering RPA onto a company’s chain operations, so decision-makers can to improve its detection capabilities, and
existing Oracle ERP can result in a signii- respond faster. If the organization creates suggest better actions over time.
cant return on investment (ROI). In a recent a rules-based SC bot in Oracle Cloud ERP
assessment conducted at a major manufac- and uses machine learning, the bot can GET HANDS-ON WITH MIXED REALITY
turer, Deloitte found that an RPA program mimic human actions and judgement. It can Mixed reality technology can help organiza-
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the digital world progress from the keyboard and analysis from Oracle and other apps cess faster, more collaborative, and more
and mouse to touch and talk on tablets and into the user’s ield of vision. cost-effective.
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nect with apps and data through gestures DISCOVER BETTER, MORE INTUITIVE EMPOWER PEOPLE AND BUSINESSES
and gazes. PRODUCT DESIGN THROUGH DATA
Virtual reality (VR) can simulate a physical Look at how an organization could employ New technologies like MI, MR, and the IoT
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world, so we can interact with that world. A product engineer working on an automo- ments can power new solutions and apps
Augmented reality (AR) works by adding bile component could share a design with that we could not have imagined just a few
multidimensional content on top of real his team using Oracle Social Cloud and years ago. To make the most of these new
world objects or locations, turning the phys- Oracle Product Information Management technologies, companies need to take a
ical world into digital media. Mixed reality (PIM). The team submits their ideas into the holistic view about how they will connect
(MR) brings them both together, along with system, and several designs move forward with their data and business processes.
the internet of things (IoT). It merges real and into the prototype phase. The goal should be evolving engage-
virtual worlds to produce new environments Instead of building traditional, physical ment—building more intuitive, immersive,
and visualizations where physical and digital prototypes, the engineer generates holo- and empowering experiences that bring
objects co-exist—and interact—in real time. graphic images of the designs based on the people closer to data, and amplify their
It enhances the real world with visual over- attributes stored in Oracle PIM. Using an AR ability to use it. By integrating today’s most
lays, spatial audio, and haptic feedback. device, he overlays the hologram onto a real advanced technologies with the applications
How can we apply MR to business pro- car for all the users to see. He can check that power their key operations, businesses
cesses? One of the promises of the tech- the parameters of every design option with can take a dramatic step forward in their
nology is its ability to allow a global work- voice commands or gestures, examining the journey toward digital transformation.
force of remote teams to work together to overall look and feel, and changing colors in If you’d like to learn more about the latest
tackle challenges. No matter where they are seconds. He then asks the smart assistant developments that are transforming the
physically located, an employee can strap to check an Oracle Costing database to get enterprise, check out the Oracle Special
on their headset and noise-canceling head- an estimate for building each design option. Edition report, “Tech Trends 2017: The
phones and enter a collaborative, immersive Finally, using an Oracle Procurement app, kinetic enterprise,” published by Deloitte
virtual environment. It can bring users closer he can conirm that components are avail- University Press, and the Tech Trends 2017
to data by feeding relevant back-ofice data able. MR makes the entire prototyping pro- web series.
SECURE THE FUTURE

THE BIG QUESTION:


SECURING
FREEDOM:
IN THE FUTURE,
WHAT WILL
BE WORTH
PROTECTING?
NEED TO KNOW

Today, there are far more


invasive surveillance
technologies changing
how police do their jobs,
where they go, who they
target, and in many ways
how they monitor society.
— ANDREW FERGUSON

10 ILLUSTR ATION: WES ROWELL


Business Class
SECURE THE FUTURE

SCAN
NATURALLY
So long, boarding pass. Some
NEED TO KNOW

customers in Delta Airlines’ loyalty


program can use their fingerprints
to board, while JetBlue is rolling
out facial recognition technology.
64% And at Dubai International Airport,
visitors will soon walk through a
OF AIR virtual aquarium where 80 facial
recognition and iris scanning cam-
TRAVELERS eras will scrutinize their faces as
WOULD USE they gaze at fish swimming by.
BIOMETRIC Welcome to the future, says Philip
DATA AS Baum, editor in chief of Aviation
Security International magazine.
THEIR
“Going forward, we will have tech-
PREFERRED nology that resembles scenes
TRAVELING from the movie Total Recall, where
TOKEN people are totally oblivious to the
fact that they are being screened
because the technology is actu-
ally built into the airport itself,” he
says. More at dubaiairports.ae.
—Bobbie Hartman

11 PROFIT MAGAZINE WINTER 2018 ILLUSTR ATION: MMDI/GET T Y IMAGES


Idea Lab
SECURE THE FUTURE

Lab Rat

PROTECTING GORILLAS SECURITY ON


IN THE CLOUD THE BRAIN
“We want to have
Truthful Brain
data in real time Corporation might
that we can use to sound straight out of
NEED TO KNOW

see if there’s a con- sci-fi, but it’s the name of a


servation threat,”
says Tara Stoinski,
17% real company using functional
magnetic resonance imaging to
president, CEO, capture brain activity. And CEO
and chief scientific APPROXIMATE Joel Huizenga says scanscan
officer for the orga- NUMBER OF prove if someone is
nization. “Having USERS WHO
the data up in the telling the truth. In fact,
cloud really helps.”
SECURE THEIR Huizenga hopes to use a scan as
The app, which ACCOUNTS evidence in a murder case in early
is free on iTunes, WITH THE 2018. This raises questions—not
only about the validity of the
can be modified PASSWORD
for researching any technique—but also about skull
“123456.” sanctity. Shouldn’t thoughts be
There are fewer Fossey Gorilla animal. More at
than 900 moun- Fund International gorillafund.org. secure? For Huizenga, the accused
tain gorillas left developed an —Margaret must consent. “It definitely should
on Earth. How app enabling field Lindquist be illegal to go inside someone’s
can scientists researchers to brain, period, unless they want
use technology enter data directly that,” he says.
to protect them? into tablets con- More at truthfulbrain.com.
With support from nected to Oracle —Monica Mehta
Oracle, the Dian Database Cloud.

12 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: COURTESY OF THE DIAN FOSSEY GORILL A FUND
Need to Know
SECURE THE FUTURE

SECURITY CITY
There’s no doubt that technology is changing policing, says READY TO ROLL ON THE FLY
Andrew Ferguson, a law professor at the University of the Singapore’s OTSAW Digital Russia’s Hoversurf signed
District Columbia and author of The Rise of Big Data Policing. has created O-R3, a tiny an agreement to sell
Just take a look at Chicago, he says, where police are using an self-driving, self-charging Dubai police Scorpion 3
NEED TO KNOW

algorithm to create a list of likely victims and perpetrators of police car outfitted with hoverbikes, which offi-
violence so they can intervene before crime happens. thermal imaging, facial and cers can use to respond
But perhaps no city is quicker to embrace high-tech security license plate recognition, to emergencies in a flash.
solutions than futuristic Dubai, which plans for nearly a quarter and a drone in the trunk to Scorpions can hover at
of its police force to consist of robots by 2030—and show- deploy as needed. Look speeds up to 43 miles
cased two very shiny solutions at the GITEX Technology show for the cars to hit Dubai’s per hour—and you don’t
this October. Here’s what to look for next time you’re in the streets before the end of have to be a police officer
business hub. the year. More at to have one. You can buy
otsaw.com/o-r3-robot. your own for just under
US$60,000. More at
hoversurf.com/scorpion-3.
—Kate Pavao

13 PHOTOGR APH: ENYO MANZ ANO PHOTOGR APHY/GET T Y IMAGES


On Topic
SECURE THE FUTURE

any large-scale data system. Also,

WHO’S database incentives could change


how particular crimes are coded.
If you’ve invested in technologies
WATCHING? that are supposed to bring crime
down, you want to see results.
Police are increasingly turning to ON STARTUPS:
technology to fight crime. Many of these innovations are
being driven by private compa-
NEED TO KNOW

Is there enough oversight? nies—many startups, many inno-


vators. It’s not that law enforce-
What if police knew that a bank robbery hap- ment is coming to the companies
pened on the corner of Fourth and Elm, and and saying, “Hey, we would like
could use a small plane equipped with tons of the following. Can you build this
tiny cameras that they could review the footage to our specifications?”
from to see the car pull up with masked robbers ON PREDICTIVE ANALYTICS: ON THE BIG QUESTION:
inside? A private company actually launched this This is actually quite useful for The companies are not thinking
solution with the Baltimore police in 2016, but identifying why some particular about what happens when their
that caused a scandal when it was revealed city place might have an environ- technology intersects with the
officials didn’t know about the initiative. mental risk that could encourage existing criminal justice system,
And that’s exactly the problem, says Andrew crime or why some person might a system that’s built and defined
Ferguson, author of The Rise of Big Data Policing: be taking the wrong path. But by small data or no data. How
we aren’t scrutinizing these solutions carefully. the remedy doesn’t have to be is this technology going to be
“Today, there are far more invasive surveillance policing; it could be social services able to be used and played out
technologies changing how police do their jobs, or it could be adding lighting to a and explained? My hope is that
where they go, who they target, and in many dark area to discourage crime. these companies will start inviting
ways how they monitor society,” he told Profit. ON BAD DATA: data scientists, ethicists, and law-
“These changes offer some efficiencies and There’s an inherent difficulty yers in ahead of time to really
innovations that are good, and it also offers that comes from police officers think through technologies before
some risks.” Here’s what he says we should be recording tons of information they get implemented.
thinking about. every day. Errors can be part of —Kate Pavao

14 PROFIT MAGAZINE WINTER 2018


SECURE THE FUTURE

Research
40
PERCENTAGE OF
AMERICANS WHO WORRY
SECURITY BY 2030
YEAR BY WHEN “THE
THAT THEY OR A FAMILY
MEMBER WILL BE A VICTIM THE NUMBERS TYPICAL NORTH
OF A MASS SHOOTING AMERICAN CITY
NEED TO KNOW

WILL RELY HEAVILY”


ON AI, SUCH AS
95 78
PERCENTAGE OF CIOS
WHO SAID THEY EXPECT
39 PERCENTAGE OF
AMERICANS WHO CALLED
SURVEILLANCE
CAMERAS, DRONES,
THAT CYBERSECURITY
PERCENTAGE TECH COMPANIES’ ABILITY
AND EVEN
THREATS WILL INCREASE OF CONSUMERS TO COLLECT SO MUCH PREDICTIVE
AND AFFECT THEIR WHO HAVE DATA ABOUT THEM A POLICING
ORGANIZATIONS UNFAVORABLE “BAD THING”
FEELINGS
46 TOWARD FACIAL
17 6
PERCENTAGE OF AMERICANS RECOGNITION
PERCENTAGE OF POLICE NUMBER IN US$ TRILLIONS
WHO THINK GOVERNMENT SOFTWARE ON FORCE ROBOTS THE THAT CYBERCRIME WILL
INVESTIGATORS SHOULD THEIR DEVICES, GOVERNMENT PLANS COST THE WORLD EACH
HAVE ACCESS TO ENCRYPTED
COMMUNICATIONS
WHILE 34 PERCENT TO DEPLOY YEAR BY 2021, DOUBLE
FELT FAVORABLE WHAT IT WAS IN 2015

15 PROFIT MAGAZINE WINTER 2018


IT’s
NEXT BIG THINGS

Bold Future
Supercharged cloud applications,
the machine learning revolution,
and much more showcased at
INSIDE ORACLE

Oracle OpenWorld 2017 in


San Francisco.

16 PHOTOGR APH: CHARLOT TE FIORITO/COMPASSPHOTOGR APHERS.COM


NEXT BIG THINGS

This is a big deal,


INSIDE ORACLE

by the way.
No one else does
this. This is the
most important thing
we’ve done in a
long, long time.
—ORACLE EXECUTIVE CHAIRMAN AND
CTO LARRY ELLISON

From October 1 through tions and deep dives into from 175 countries; offered
October 5, Oracle cutting-edge technologies 2,300 sessions; provided a Oracle Executive Chairman and
CTO Larry Ellison announced
OpenWorld 2017 brought and innovative solutions at speaking platform for more
Oracle Database 18c in the first
together top technologists both Oracle and customer than 3,000 customers and of two keynotes he delivered at
and IT leaders for immer- companies. The conference partners; and featured more the conference.
sive, interactive demonstra- hosted 60,000 attendees than 500 Oracle technol-

17 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: CHARLOT TE FIORITO/COMPASSPHOTOGR APHERS.COM


NEXT BIG THINGS

Attendees gathered on
Howard Street to network,
lunch, and relax.

which he described as the


world’s first 100 percent
“self-driving” autonomous
database. This new release is
INSIDE ORACLE

an even more reliable, lower-


cost next generation of the
company’s flagship database,
Ellison said.
Oracle Database 18c’s
self-patching and self-tuning
capabilities, powered by
machine learning—a “tech-
nology that’s every bit as rev-
olutionary as the internet,”
Ellison said—will minimize
human intervention and vir-
tually eliminate human error,
helping reduce security risks
while freeing database man-
agers to focus on higher-
level work.
“This is a big deal, by
ogy sessions, demos, and highlight of the conference, self-managing systems that the way. No one else does
case studies. and in this year’s address are more secure than ever. this,” Ellison said, adding,
Oracle Executive Chairman Ellison told a rapt audience That future has arrived, “This is the most important
and CTO Larry Ellison’s that he has seen the future Ellison revealed, in the form thing we’ve done in a long,
opening keynote is always a of IT: autonomous, adaptive, of Oracle Database 18c, long time.”

18 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: TUE NAM TON


Security concerns, and nomic climate and rapid pace Analytics Cloud Service to
NEXT BIG THINGS

investments in ways to of disruption across indus- Provide the Next Generation


address those concerns, were tries, are driving companies of Cybersecurity
also top of mind during Oracle to the cloud in an effort to
CEO Mark Hurd’s keynote. quickly free up resources for Oracle
Hurd cited security as one of investment in customer-facing Introduces
the reasons more companies innovation. “The movement Oracle AI Platform Cloud
are shifting more of their IT to cloud is an inevitable Service to Enable Machine
workloads to cloud service destination,” Hurd contin- Oracle Headlines from Learning in the Cloud
INSIDE ORACLE

providers such as Oracle. ued. “This is how comput- ORACLE OPENWORLD


Business managers are ing will evolve over the next Oracle Offers
saying, “I want to move this several years.” Oracle Adaptive
risk. I want to move this com- The New Oracle Intelligent Apps
plexity. I want to move this THE PATH AHEAD Blockchain Built into Existing Oracle
cost,” Hurd recounted. “I The security theme was Cloud Service Offers Cloud Applications to
want to move it from here to echoed once again when Enterprise-Grade Provide Powerful AI-Based
there—i.e., from you to me.” Amit Zavery, senior vice Blockchain Capabilities Modern Business
Hurd noted that corpo- president of product devel- Applications
rate IT budgets continue to opment for Oracle Cloud Oracle Announces
be flat in many companies. Platform, laid out the Oracle Oracle Security
With more than 80 percent Cloud Platform roadmap Monitoring and
of those budgets typically in an Oracle OpenWorld
allocated to things like patch- general session.
ing, upgrading systems, and In particular, Zavery
maintenance, that leaves little offered the example of ing, and Oracle Blockchain keeping Oracle’s cloud
funding for investing in the the new Oracle Blockchain Cloud Service is built on platform open, he noted
kinds of modern applications Cloud Service. Blockchain is Hyperledger Fabric, the open that open doesn’t mean
and customer touchpoints a cloud-based distributed source effort led by the Linux undifferentiated. He pointed
that consumers and business ledger that can be used in Foundation to spur cross- out that Oracle enhances the
customers alike expect. business-to-business partner industry blockchain standards. best open source innova-
Such budget constraints, ecosystems for more-secure While Zavery empha- tions with the tools for man-
along with the current eco- transactions and data shar- sized the importance of agement, security, develop-

19 PROFIT MAGAZINE WINTER 2018


NEXT BIG THINGS

Oracle CEO Mark Hurd during


his keynote address, which
touched on how current market
conditions are driving companies
to the cloud

artificial intelligence, machine


learning, chatbots, and new
human interfaces, Kurian said,
INSIDE ORACLE

adding that these emerging


technologies now fit into the
vision Oracle has had since
it started building its cloud
offerings more than a decade
ago: Let anyone, anywhere in
the world, access the power
of all of Oracle’s technolo-
gies using only a browser or
a phone.
“We’re going to show you
not just the new innovations
we have in Oracle Cloud, but
also a glimpse into the future
of Oracle, of how we’re infus-
ing the new technologies of
ment, and high-performance to come next. Said Zavery, Showcasing that innovation autonomous computing, arti-
infrastructure that compa- “We have a technically through demos was the core ficial intelligence, IoT [Internet
nies need to put them to unified and proven PaaS of Oracle President of Product of Things], blockchain, and
practical use. [platform as a service] offer- Development Thomas Kurian’s new forms of human inter-
In addition, Oracle makes ing, completely based on keynote, which mapped out face into our cloud offering,”
sure companies are ready open standards, delivering the technology path ahead Kurian said.
for the big idea that’s sure continuous innovation.” for Oracle. That path includes For more in-depth cover-

20 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: CHARLOT TE FIORITO/COMPASSPHOTOGR APHERS.COM


age of the topics he explored, of their own database secu- working on database tech-
NEXT BIG THINGS

see our interview with Kurian rity, but that’s not working nology for decades. The
in this issue. anymore because today hard part is not the auto-
Finally, in his second breaches are very sophis- mation. It’s making the
keynote of the conference, JUAN LOAIZA ticated—involving people technology safer. It has to
Larry Ellison introduced the Senior Vice President, or criminal organizations be safer and more reliable
industry’s first cloud-native, Database Systems with extreme levels of than what you can do your-
integrated security and sys- Technology, Oracle resources. Enterprises need self—otherwise you’re not
tems management suite: to partner up with another going to use it to support
INSIDE ORACLE

the Oracle Identity Security Lately, enterprise cyber- company such as Oracle mission-critical workloads.
Operations Center port- that has the resources, the PROFIT: How does Oracle
attacks are making the
folio of services coupled with experience, and thousands Database 18c automate
news much too fre-
Oracle Management Cloud. of engineers that can be safety and reliability?
quently, putting the spot-
Like Oracle Database on their side to protect LOAIZA: To protect against
18c, these integrated cloud light on database secu- against cyberattacks. internal and external attacks
services rely on machine rity. Here Juan Loaiza, PROFIT: Why is it so critical and also against failure,
learning—a particular appli- senior vice president for Oracle Database 18c to Oracle Database 18c incor-
cation of machine learning of database systems be safer and more available porates a lot of technol-
designed to help com- technology at Oracle, compared to manual data- ogy that we’ve built over
panies forecast, quickly discusses why security base management? the years, such as Oracle
detect, and ward off security threats are escalating LOAIZA: Oracle has been Database Vault. The data-
attacks as well as system and how Oracle’s self- base offers a system avail-
performance issues. securing autonomous ability rate of 99.995 percent.
“The real problem is loss Oracle Database 18c is a Oracle understands that as
of information,” Ellison said. revolutionary solution. soon as a security issue is
“If your system is down and identified, it needs to be
you can’t sell tickets or sell PROFIT: Why are the stakes addressed, so the deploy-
flashlights or whatever you’re so high for enterprise secu- ment of security updates
doing on your online system, rity breaches? has been completely auto-
that’s not good—you’d like LOAIZA: Traditionally, com- mated and doesn’t require
the system to be available all panies have been in charge going offline.
the time. But you don’t get

21 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: MARGOT HARTFORD


NEXT BIG THINGS

If you lose data, that’s a big problem. And that’s fundamentally what . . .
our system is designed to protect against.
—ORACLE EXECUTIVE CHAIRMAN AND CTO LARRY ELLISON
INSIDE ORACLE

called in front of Congress NEXT STEPS place October 28 through


(Left) Oracle's Cloud Development for that. If you lose data, It’s not too soon to sign up November 1, 2018,
Tools and Product Management
that’s a big problem. And to be notified when registra- in San Francisco.
Team at a Collective Learning
Session (Right) Students from that’s fundamentally what tion is open for both confer-
Design Tech High School (d.tech) . . . our system is designed to ences, Oracle OpenWorld Alison Weiss is a frequent
protect against.” and JavaOne, which take contributor to Profit.

22 PROFIT MAGAZINE WINTER 2018 PHOTOGR APHS: SANDR A GARCIA


SECURE THE FUTURE

In the enterprise, everyone from


CEOs to DBAs is asking questions
about how to prevent data theft.

With data theft being the autonomous database, Oracle


biggest cybersecurity threat Database 18c, addresses these
the world over, there are concerns by using automa-
PERSPECTIVE

growing concerns about safe- tion, the enhanced security of


guarding the valuable infor- Oracle Cloud, and integration
mation stored in databases. with additional security appli-
According to a recent Verizon cations to protect valuable
report on data breaches, company and customer data.
more than 1,900 such security Here are three ways Oracle

AUTOMATIC breaches were reported in


2017 alone. The news regularly
highlights new cyberattacks as
Database 18c can improve
data security.
1. Automatic application

SECURE they occur, and security teams


are working around the clock
maintaining secure configu-
of security patches. DBAs
and database managers
understand how much work

INTEGRATED rations and managing access


privileges in order to avoid
becoming the next headline.
is needed to apply security
patches to databases in a
very large environment. They
In the enterprise, everyone must make significant budget
MICHELLE MALCHER, Oracle ACE Director and Security from CEOs to DBAs is asking requests, often on a quarterly
Architect at Extreme Scale Solutions
questions about how to pre- basis, for resources to perform
vent data theft. Oracle’s new the work. With automated

23 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: PAUL S. HOWELL


patching, large environments
SECURE THE FUTURE

can be patched in a consistent


and efficient way as soon as
vulnerabilities are recognized
Instead of worrying about how to apply, test, and configure
and fixed. Because human the databases for security patching, database teams are
intervention is not needed to
apply patches, manual mis-
able to focus on how to thwart future cyberthreats.
takes are limited. Automated
patching also means that
DBAs don’t need to grant
PERSPECTIVE

additional privileges to others and the database are sepa- 18c, this service’s applied continuous improvements
to perform the required tasks, rate. The standardization of machine learning capabilities that are complementary with
giving fewer people access to the cloud environment offers can quickly detect risks and the automated processes.
sensitive data. consistent ways to monitor possible attacks from both Oracle Database 18c pro-
2. The security of Oracle and audit the environment, internal and external sources. vides mitigation for the risks
Cloud. The enhanced because every database has The database can utilize the of delayed security patching
security features of Oracle the same security in place and details discovered by security and the errors that stem from
Cloud are built into Oracle differences will stand out. Risk monitoring to adapt a secu- manual processes. Attacks
Database 18c. For example, is reduced by utilizing data rity posture by implementing are going to come through
data on the server and in protection features in Oracle changes in configurations. the weakest point—such
backups is encrypted, and Database 18c to monitor Because Oracle Database as known vulnerabilities—
DBAs are not able to make abnormal behavior or inap- 18c is handling the resource- and shorter patching cycles
changes to configurations propriate database access. intensive patching with auto- reduce these opportunities.
to allow more access to the 3. Integration with addi- mated processes, DBAs are Instead of worrying about
data. Using encryption and tional security features. available to review the secu- how to apply, test, and con-
access controls reduces the Oracle Database 18c can rity intelligence and use ana- figure the databases for secu-
risk of unauthorized data- utilize other security fea- lytics to continue to secure rity patching, database teams
base access. There is also a tures that are available in the databases. From a data- are able to focus on how to
natural separation of duties Oracle Cloud, such as Oracle base management perspec- thwart future cyberthreats.
in the cloud environment Security Monitoring and tive, this service provides a
that limits what an attack can Analytics Cloud Service. very powerful tool to find ACTION ITEM
do—access to the server Used with Oracle Database vulnerabilities and allow for ■ Oracle Autonomous Database

24 PROFIT MAGAZINE WINTER 2018


SPONSORED CONTENT

Multidirectional Security
in a Multicloud World
Gain end-to-end visibility and control
across diverse environments.
By John Maddison, Sr. VP of Products and Solutions, Fortinet, Inc.
John Maddison, Sr. VP of Products
and Solutions, Fortinet, Inc.

aintaining visibility into collaboration and on-demand infra- and dynamic as the cloud itself.

M what’s happening deep


within the cloud isn’t easy,
and it’s becoming more important
structure for data centers and com-
puting needs.
To meet growing needs for
Q. As more enterprises migrate
critical applications and work-
than ever to protect critical data on-demand network and com- loads from their on-premises
and defend a growing poten- pute resources, organizations are data centers and private clouds
tial attack surface. According to extending their infrastructures out to the public cloud for its agility
Fortinet’s Global Threat Landscape to the public cloud. According and scale beneits, how have
Report, enterprises use a median to IDC, 75 percent are currently security requirements evolved?
of 62 different cloud applications implementing or considering the A. The days of simply securing the
or services in their networks, with implementation of public cloud network perimeter are long gone.
Infrastructure-as-a-Service (IaaS) resources, and they predict that 50 Today, resources can be consumed
reaching an all-time high. That’s percent of enterprise workloads will by different cloud-based solutions
nearly a third of all applications and migrate to the public cloud by 20181. and applications, and data is often
For more information, visit services used, spanning everything From a security perspective, cloud shared and migrated between these
www.fortinet.com from data storage and ile sharing to security solutions must be as elastic clouds. As organizations move to
1
“Securing Dynamic Cloud Environments: Developing Your Solution Checklist in a Changing Paradigm,” Fortinet, 2017
SPONSORED CONTENT

hybrid cloud environments, they’re actually while protecting the rest of the network. In organizations. A critical lapse in visibility,
creating multidimensional cloud ecosys- addition, migrating data, accessing large control, or coordination in any part of the
tems. That creates new challenges when it data sets, or using third-party, cloud-based distributed network, especially in the cloud,
comes to securing all these environments analytics services requires secure connec- can spell disaster for a digital business.
and the data traveling through them. tions to external networks. To protect today’s distributed business,
One of the top requirements for securing When it comes to multicloud environ- organizations need to adopt an integrated
a hybrid cloud is delivering single pane-of- ments, security teams need to be sure that security strategy that can collect, share, and
glass management across all the disparate their solution is scalable and elastic, so it correlate threat information; distribute miti-
cloud environments. Organizations need to can keep pace with environments that are gation instructions across all attack vectors;
maintain deep visibility, centralized policy changing and growing fast. And they need extend visibility and control across the net-
orchestration, integrated event correlation, to be able to easily and dynamically sepa- worked ecosystem; and enable a synchro-
and consistent controls and response. That rate and segment systems, workloads, and nized attack response. One effective way
requires a high level of integration. You need applications, based on unique risk proiles. to do this is to design a security fabric, or
architectural approach, that enables you to
tie your deployed security tools into a single,
“Fortinet and Oracle continue to expand their relation- holistic solution. The Fortinet Security Fabric
employs this approach to provide broad,
ship to deliver virtualized security solutions across powerful, automated security across phys-
ical, virtual, and cloud environments.
Oracle public and hybrid cloud environments.”
—John Maddison, Sr. VP of Products and Solutions, Fortinet, Inc. Q. Are cloud providers and managed
security service providers (MSSPs)
facing the same concerns when it comes
tools that are either natively designed to Q. How does Fortinet help organiza- to security as enterprise organiza-
operate together across different environ- tions maintain consistent security vis- tions? How does Fortinet address these
ments, or based on open standards and ibility and control across multicloud concerns?
APIs, so you can build a central security networks, spanning private and public A. An especially important part of the busi-
operations solution. clouds to Software-as-a-Service (SaaS) ness model for cloud providers and MSSPs
Securing the connections themselves applications? is the need to accurately bill customers for
is also key. Hybrid solutions must support A. The deluge of isolated, specialized secu- the consumption of cloud resources. This
robust VPN functions for secure, temporary rity tools being deployed has created a blind can be tricky for security services because
access to resources when it’s needed— spot in the overall security strategy of many many cloud-based security tools are simply
SPONSORED CONTENT

virtual versions of their enterprise-based they do on their physical networks. That’s ized security solutions across Oracle public
appliances. These tools don’t meter and why we’ve extended the core capabilities and hybrid cloud environments. Available
track security consumption. of Fortinet Security Fabric to the cloud. For now as a BYOL offering in the Oracle
Fortinet’s VM On-Demand security example, we have enhanced our virtualized Cloud Marketplace, FortiGate VMs give
platform provides turnkey VM licensing and FortiGate to deliver cloud-scale perfor- Oracle Cloud customers a combination of
provisioning for cloud providers and MSSPs, mance for private and public clouds. Its VMs advanced threat intelligence from FortiGuard
as well as enterprises with large private now deliver up to three times faster per-core Labs, along with the industry-leading secu-
cloud resources. Metering capabilities throughput than before. rity operating system, FortiOS. Together,
enable them to deliver on-demand pricing We’re also improving public cloud secu- these solutions enable complete security
and automation to end customers. The VM rity automation with on-demand and auto- feature control, workload visibility, and man-
On-Demand security platform supports scale capabilities. Fortinet Security Fabric agement for physical, virtual, and cloud
consumption-based, pay-as-you-grow virtual solutions deliver complete content environments.
billing, with hourly or volume-based and network protection, and are avail- Fortinet is an early adopter of Oracle
metering options, as well as network able on demand or BYOL (Bring Your Own Cloud Infrastructure and Oracle Identity
functions virtualization (NFV) orchestration Licenses), taking advantage of elastic work- Security Operations Center (SOC), featuring
compatibility for MSSPs. When it’s paired loads and automated security that scales. its FortiGate VM. This close integration lets
with FortiHypervisor, VM On-Demand Additionally, we’re partnering with Oracle users securely move business-critical work-
offers cloud providers and enterprises the Security to bridge the gaps between net- loads from on-premises or private-to-public
widest choice of physical, virtual, and hybrid work, on premises and cloud. cloud deployments, and increase visibility
customer-premises equipment (CPE) form Fortinet has also introduced a new API- by integrating identity within the context of
factors to support managed security and based FortiCASB service, which lets IT threat-based events. This added visibility
software-deined wide area networking teams maintain security visibility for both from Oracle’s Machine Learning and UEBA
(SD-WAN) services. on- and off-network user access to some provides actionable intelligence across threat
of the most widely used SaaS applications, vectors. As Oracle Cloud scales through
Q. Many enterprises are embracing including Microsoft® Ofice 365™. multiple Availability Domains (ADs), FortiGate
Oracle Cloud as their public cloud solu- will complement the cloud services with
tion. How does the Fortinet Security Q. What are some of the ways Oracle highly available, multi-layered security to
Fabric improve security and compliance and Fortinet are working together to help support customers’ most critical workloads
for Oracle Cloud customers? organizations protect multidimensional across environments. Together, Oracle and
A. We want businesses to be able to expe- cloud environments? Fortinet will continue to deliver the on-de-
rience the same level of cybersecurity and A. Fortinet and Oracle continue to mand, multiple layers of security that today’s
threat intelligence in cloud environments as expand their relationship to deliver virtual- dynamic cloud networks need most.
Oracle President Thomas Kurian
says Oracle Cloud is at the front
of today’s cloud market. But how
does that help customers adopt
tomorrow’s technologies?

AHEAD OF
THE CURVE
BY AARON LAZENBY

The emergence of enterprise cloud computing


is no longer a matter of debate—and the num-
bers bear that out. Research firm IDC found
that companies are acquiring cloud services
at more than six times the rate of IT spending,
while Deloitte predicts that IT-as-a-service will
account for more than US$500 billion in eco-
nomic activity in 2018.

28 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: K ATELYN TUCKER /OR ANGE PHOTOGR APHY
Cloud architecture must be engineered with future use cases in mind.
Otherwise, you’re going to be trapped in a cloud that is not keeping up
with the market—and that would undermine one of the core benefits of
cloud computing.

As the leader of one of the cloud stack in any data center. This run and use applications without
world’s largest cloud development affords us some very unique capa- having to manage the systems
organizations, Oracle President bilities as we look into the future.” themselves. All of that is clear at
of Product Development Thomas In the days after Oracle this point.
Kurian has an enviable view of OpenWorld 2017, Kurian spoke to Now, customers are making
the cloud economy. And whether Profit about some of those unique requests for novel uses of the
in private conversation or on the capabilities—including the impact technology. I’ll give you an exam-
public stage at events (such as of emerging technologies such as ple. We are currently working on a
Oracle OpenWorld), Kurian makes artificial intelligence (AI) and the project with an oil and gas explo-
a strong pitch for Oracle’s position Internet of Things (IoT) on enter- ration company. They are moving
in the marketplace. prise cloud computing. hundreds of terabytes of data to
“We’re the only cloud vendor Oracle Cloud as the foundation
that provides infrastructure as a PROFIT: Oracle is 10 years into of their exploration and science
service [IaaS], platform as a ser- its cloud journey. What have we algorithms. That critical part of
vice [PaaS], application software learned from customers about our their business uses Oracle Cloud
as a service [SaaS], and data as cloud portfolio? Infrastructure to run the compu-
a service [DaaS]”,” says Kurian. KURIAN: Customers today under- tations, and they’re using our ana-
“We have an unmatched breadth stand the value of cloud comput- lytics and Oracle Big Data Cloud
of functionality and integration ing—how much money you can Service as a platform to manage
across our platform and applica- save, how fast you can deploy the large data assets that they’re
tion portfolio. And we can run that workloads, and how easy it is to loading into the cloud.

29 PROFIT MAGAZINE WINTER 2018


We’re also working with a gro- and our strategy is threefold. First,
cery retailer who wanted to con- we’ve put very fast computers in
nect our software-as-a-service Oracle’s IaaS, based on a technol-
applications to their mobile user ogy called graphical processing
base. They wanted to use a bot to unit [GPU] that runs machine learn-
make that connection. So the bot ing algorithms with extremely high
and the user interface run on our performance. So the computation
platform as a service connecting is lightening fast. Second, we’re
up our SaaS applications. building out a PaaS so data scien-
There are hundreds of such tists and experts can build appli-
examples: supply chain companies cations on top of their own algo-
using our IoT platform as well as rithms or off-the-shelf algorithms.
customers activating the AI tech- Third, we have taken a specific
nology inside our applications set of AI algorithms and inte-
and then using that as part of a grated that into our SaaS appli-
platform to do trending. These cations. There are a number of
use cases largely reflect what an business processes these AI algo-
IT footprint looks like within a tra- rithms could help with. For exam-
ditional corporate enterprise. IT ple, an AI algorithm could tell a
needs the whole stack, but they marketer the best message to
can’t say, “Hey, we’ve got to go to send to a lead. It could tell sales do. In our view, algorithms can do
four different clouds to do that.” reps which of the many leads they it a lot better than just human- Oracle President
of Product
should focus on closing or what’s encoded rules.
Development
PROFIT: How does Oracle’s cloud the best product to recommend. But the overall cloud archi- Thomas Kurian
portfolio support customers’ need It could tell a customer service tecture must be engineered believes Oracle
for the flexibility to adopt new representative what to say in with future use cases in mind. Cloud makes the
technologies as they emerge? response to a customer’s query. Otherwise, you’re going to be strongest case for
KURIAN: Well, take AI and All of these are scenarios where trapped in a cloud that is not what enterprise
IT will look like in
machine learning as an exam- human beings write very sophis- keeping up with the market—and
the future.
ple. These are areas of enormous ticated, complicated rules to try that would undermine one of the
importance as we go forward, and drive what a person should core benefits of cloud computing.

30 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: CHARLOT TE FIORITO/COMPASSPHOTOGR APHERS.COM


PROFIT: How is Oracle uniquely It gets even more complicated Why are they accessing these sys-
qualified to help companies intro- when you introduce a new prod- tems? Our AI allows us to very
duce emerging technologies such uct, because the state of the art quickly compare anticipated behav-
as AI and machine learning into in algorithms is looking at what ior against a user’s actual activity
their business processes? an individual and people like that within the system to flag whether
KURIAN: We understand the appli- individual are buying, and then the user is nefarious or authorized.
cation’s function domain in great making a recommendation based We also applied AI and
detail, so we can tailor unique on that information. But nobody machine learning to the Oracle
algorithms for specific domains. has bought the new product yet, Autonomous Database solutions,
For example, traceability is import- so how do you introduce novelty which Larry Ellison announced
ant with an AI algorithm that’s into the algorithm? Our experi- at Oracle OpenWorld. There are
assisting a human with workflow ence in enterprise workloads and many mundane tasks required
tasks—you must have clarity on enterprise data helps us under- to operate a piece of software.
why the algorithm recommended stand and create machine learning There’s a certain tedium associ-
or rejected something. This is just algorithms very differently. ated with these tasks, and staff
a fact we know because of our often does not perform them
work with our customers. PROFIT: What role does AI and consistently. They don’t really add
It’s also very important to opti- machine learning play in the area competitive advantage, so they
mize algorithms for the domain, so of security? are not a priority to senior man-
that you avoid statistical skew and KURIAN: The fundamental heart agement. But if you don’t make
selection bias. For example, algo- of a security algorithm is an under- these mundane tasks a priority,
rithms on ecommerce recommen- standing of what people are doing you can introduce significant secu-
dations are relatively simple to do what operations on what systems rity vulnerabilities to the system.
with a large number of shoppers in the organization and whether So instead of having a human
and an assortment of products. any of those operations are mali- do all of those tasks for a data-
But what if you have a really small cious. Our technology uses AI, par- base—install, configure, patch,
number of customers and a small ticularly machine learning and clus- upgrade, back it up, and encrypt
assortment of products? You have tering, to understand the patterns it—the software does this auto-
to be careful to avoid statistical by modeling systems. What are the matically on behalf of the user.
skew in the recommendation that relationships between systems? This gives you greater predictabil-
the software is making. Who is accessing these systems? ity and accuracy in the way sys-

31 PROFIT MAGAZINE WINTER 2018


IT needs the whole stack, but they can’t say, “Hey, we’ve got to go to
four different clouds to do that.”

tems are configured, at a substan- menting devices with sensors, and intracompany transactions. With
tially lower cost. it delivers the ability to respond blockchain, you can use the [open
when sensors send information source project] Hyperledger as a
PROFIT: Aside from AI and up to the cloud-based system mechanism to guarantee integ-
machine learning, what other that’s monitoring them. When you rity of data, validating data that
emerging technologies do you are able to monitor logistics and may be subject to regulatory or
see having the greatest potential assets in that way, you can make market scrutiny.
to radically change business in business process more efficient. Each of these new technolo-
the decade ahead? This will transform supply chains, gies will transform the modern
KURIAN: Three of the most for example, by digitizing the flow business in its own way. Our job is
important new technologies we’re of data from the physical world, to make sure our customers have
looking at are chatbots, IoT, and which allows algorithms to interact the platform they need to adopt
blockchain. The chatbot makes with physical space. these technologies as they see fit.
messaging a client to any appli- Blockchain is enabling any That is why I believe Oracle Cloud
cation, essentially becoming the business process that’s highly makes the strongest case for
new browser. It offloads the need centralized in a company to be what enterprise IT will look like in
for human beings to be involved decentralized or distributed in a the future.
in very mundane tasks—such as fundamentally different way. For
answering basic questions—by example, intracompany transac- Aaron Lazenby is editor in chief
having a digital assistant do the tions could be totally transformed. of Profit.
job. I believe chatbots will trans- Today, when two different divi-
form the human interface. sions of a company reconcile their
IoT is a way to improve busi- financial positions, they have to do ACTION ITEM
ness process efficiencies by instru- a lot of manual reconciliation of ■ Try Oracle Cloud for Free

32 PROFIT MAGAZINE WINTER 2018


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Oracle Blockchain Cloud Service
helps cloud-native fintech
Biz2Credit provide billions of
dollars in merchant cash advances.

LEDGER
TEST
BY SASHA BANKS-LOUIE
PHOTOGRAPHY BY PAUL S. HOWELL

Venkatesh Bala (left), Chief Risk Officer at Biz2Credit, with


Rohit Arora, the company’s Cofounder and CEO

34 PROFIT MAGAZINE WINTER 2018


Biz2Credit’s Venkatesh Bala (left)
and Rohit Arora note that Oracle
solutions help the company make
better assessments of a given
merchant’s risk profile.

The hope of achieving the


American dream has, for decades,
been the life force of economic
innovation and growth in the
United States. But for the country’s
nearly 30 million small businesses,
it takes more than entrepreneur-
ial spirit to realize that dream, let
alone sustain it. According to the
US Small Business Administration, ing source of collateral to secure a Oracle products: Personal quote/
the top two reasons small busi- commercial loan, a merchant cash Oracle Open mantra:
nesses fail are sluggish cash flow advance lender takes a percent- Banking Platform, “Never stop
Oracle Blockchain improving your-
and limited access to financing. age of a company’s future credit
SNAPSHOT Cloud Service self. If you stay
Yet the huge amount of capital card sales as repayment. stagnant, you will
BIZ2CREDIT
required to get a business loan “A small business may not have ROHIT ARORA be outrun. Always
biz2credit.com
from a bank has led many small- enough inventory, cash depos- strive to be a
Location: Cofounder and better, stronger
to-medium businesses (SMBs) its, or equipment to offer a bank CEO
New York City version of yourself
to seek alternative sources of as collateral,” explains Venkatesh tomorrow than
Industry: Length of tenure:
financing, such as merchant cash Bala, chief risk officer at Biz2Credit. 10 years you are today.”
Financial services
advances from lenders such “In most cases, however, a mer-
Employees: Education:
as Biz2Credit. chant can sell a portion of its MS in international
240
Unlike most banks that expect future credit card sales to acquire a finance, Columbia
a business owner to have an exist- cash advance immediately.” University

35 PROFIT MAGAZINE WINTER 2018


350,000+
Number of SMBs Biz2Credit
has matched with lenders

US$2 billion
Amount in cash advances
Biz2Credit has helped
originate worldwide

payroll data, and then shares the


data with its member lenders on
the company’s online marketplace.
These lenders can also view digi-
tal loan applications and calculate
financial ratios (such as profitabil-
ity, gross margin, and debts to
assets), and then determine the
best payment terms and interest
Launched in 2007, the New up with collateral, Biz2Credit just rates based on each borrower’s
Lenders who York City–based financial tech- requires SMBs to show proof that risk profile. The Biz2Credit plat-
participate in
nology (fintech) firm has devel- they’ve been in operation for at form also allows lenders to con-
the Biz2Credit
marketplace oped an online marketplace that least one year, have monthly credit figure their own business rules
can view helps SMBs get access to short- card sales of at least US$10,000, and generate scorecards to help
merchant profiles term funding through alternative have not declared bankruptcy in make accurate funding decisions.
immediately and lenders, such as specialty banks, the past year, and are free from Lenders can order third-party data
return an approval hedge funds, and credit unions. liens or other judgments filed from credit bureaus, banks, and
within seconds.
Cash advances range between against them. the IRS directly from the platform,
US$5,000 and US$200,000, and Biz2Credit’s lending platform which is automatically format-
approvals are made within a few pulls data from an SMB’s finan- ted for running reports on cash
days. Rather than having to come cial summaries, tax records, and flow analytics.

36 PROFIT MAGAZINE WINTER 2018


The blockchain keeps a ledger of all the receivables and every payment,
and then will automatically set up spread payments in the settlement
ledger to accommodate revenue spikes and dips.
—Rohit Arora, Cofounder and CEO, Biz2Credit

After a lender approves an ny’s platform connects only to uses a credit card with Chase
application, it buys a fixed per- partner feeds from banks and a Bank to purchase some items
centage of the merchant’s future few credit card payment proces- for a store, and then the store
credit revenues, often at a dis- sors, limiting Biz2Credit’s ability to books US$10,000 of revenue,
count, with an average payback verify all of a merchant’s financial Biz2Credit gets a split fee of 10
period of between 6 and 12 transactions directly from the mer- or 15 percent directly from the
months. To date, Biz2Credit has chant’s book of record or general credit card receipts provided by
matched more than 350,000 SMBs ledger systems. the payment processor. Because
with hundreds of lenders and has As a result, Biz2Credit sees Biz2Credit collects the fee directly
helped originate more than US$2 only a limited view of transactions from the credit card processor, if
billion in cash advances globally. that have happened in the past. the merchant switches credit card
“Without real-time visibility into processors, it’s very difficult for
OPEN BANKING a merchant’s entire credit portfo- Biz2Credit to know that a switch
Because Biz2Credit’s dataflows lio, we’re exposing ourselves and has occurred, track down the new
are automated and available in the our lenders to significant risk,” processor, and then collect its fee.
cloud, lenders who participate in Bala says. For Biz2Credit, such collections
the Biz2Credit marketplace can But collecting all of the data can take weeks and require the
view the merchant profiles imme- associated with a merchant’s company’s underwriters to manu-
diately and return an approval credit portfolio can be a complex ally verify each merchant’s account
within seconds. But the compa- task. For example, if a merchant status by calling banks and other

37 PROFIT MAGAZINE WINTER 2018


blockchain-based global • Instant international bank signiicant cost savings.
payment initiative that transfers. Transactions that The SWIFT initiative is pow-
will provide secure, end- used to take days can be ered by Oracle Blockchain
to-end tracking for global realized instantly, because Cloud Service, which is built
inancial transfers. compliance reporting to on the standards-based
BLOCKCHAIN At this point, 30 banks central banks and regula- Hyperledger Fabric version
SIMPLIFIES are live on the blockchain
platform, and SWIFT plans
tory agencies can be con-
ducted in real time.
1.0. This platform enables
organizations and institutions
INTERNATIONAL to eventually connect more • Lower cost of inter- to build production-ready
MONEY than 11,000 licensed banks, national bank-to-bank global blockchain networks
TRANSFERS inancial institutions, and transfers. Blockchain- and rapidly deploy their
corporations across more based Hyperledger smart use cases.
than 200 countries. SWIFT contracts can automate Banks will eventually
Anyone who has trans- says the platform will also the compliance process become cloud-based peer
ferred money internationally enable future real-time regula- and remove the human nodes on blockchain net-
between banks knows that tory compliance reporting to cost element. works of inancial service
the process often takes too central banks and law enforce- • Accurate compliance providers such as VISA,
long and costs too much. ment agencies worldwide. reporting. Regulatory MasterCard, and American
Now, with the advent of The SWIFT platform is reporting to central banks Express. This could lead to
blockchain technology, trans- built on a cloud-based and other agencies to pre- the proliferation of cloud-
ferring money should become Hyperledger Fabric, which vent money laundering can based blockchain platforms
simpler and faster for cus- allows each member bank be automated and trig- in the very near future.
tomers while also generating to have a cloud-based peer gered in real time. The challenge is to ensure
more revenue for the banks. node that interfaces with • No infrastructure to man- interoperability across
The Society for Worldwide the SWIFT central node. The age. The cloud-based multiple blockchain plat-
Interbank Financial central node provides trans- aspect of the blockchain form fabrics. Eventually,
Telecommunication (SWIFT), actional consensus between platform means that both standards-based blockchain
a global cooperative that the two banks conducting SWIFT and member banks platforms that can scale glob-
provides secure inan- the transfer. don’t have to maintain ally in the cloud will prevail.
cial messaging services, SWIFT’s blockchain technol- any infrastructure in their —Vivek Alwayn, Director,
is currently working on a ogy can provide data centers, leading to Oracle Insight

38 PROFIT MAGAZINE WINTER 2018


We can now see the risk profile of merchants in real time and
can make more-informed decisions about their ability to pay.
—Venkatesh Bala, Chief Risk Officer, Biz2Credit

financial institutions to get an coming from a trusted source. Platform, Bala and other execu-
accurate read on the borrow- However, using the built-in API tives from Biz2Credit decided to
er’s finances and ability to repay layer that connects to Oracle ERP test the platform for its market-
the loan. systems, the Oracle Open Banking place by creating a smart loan
The only way to get a com- Platform can help Biz2Credit pull contract using Oracle Blockchain
plete view of a merchant’s finan- payment processor transaction Cloud Service. Using the APIs
cial transactions is if the merchant data into a single smart contract from the Oracle Open Banking
opts in to give direct access to its that allows the merchant’s credit Platform, calls are made to the
enterprise resource planning (ERP) card receipts to be shared with the Oracle Blockchain Cloud Service
systems. Through this sort of per- company and its lender partners. application, which automatically
missioned access, Biz2Credit is Secured by Oracle Blockchain pulls in credit card receivables
able to track all of the merchant’s Cloud Service, an application and audited financial general
audited financial statements and within Oracle’s platform-as-a- ledger information from a mer-
credit card receivables, regardless service portfolio that catalogs chant’s ERP application, helping
of which card processor is used. and securely records financial Biz2Credit record the transactions,
The result is less risk for Biz2Credit transactions between participants share them with lenders, and
and its lenders and more favor- on a shared blockchain ledger, then enforce the loan contracts
able terms for merchants. the contracted parties can control securely and in real time.
Biz2Credit’s platform wasn’t which financial data is shared “Oracle Blockchain Cloud
designed to access third-party and with whom. Service gives Biz2Credit a direct
data directly, let alone ensure After seeing demonstrations line of sight to the cash flow, debt-
that the connection is secure and of the Oracle Open Banking to-loan ratios, and other financial

39 PROFIT MAGAZINE WINTER 2018


on the blockchain. These capa- today companies are using it for
bilities allow lenders to quickly more than just managing crypto-
identify merchants that have the currency transactions.
lowest-risk profiles, offer them the Using a central third party, such
most-favorable terms, and ulti- as a bank, or an offline reconcili-
mately close more deals. ation tool, such as a spreadsheet,
Another reason Biz2Credit can add costs, introduce human
chose to pilot the Oracle cloud errors, and delay decision-making.
platform is the fact that hundreds Blockchain avoids those pitfalls by
of thousands of SMBs are cur- using peer-to-peer protocols—
rently using Oracle ERP applica- instructions that connect distrib-
tions, NetSuite’s SuiteCloud ERP uted participants in a digital net-
platform, and NetSuite’s SuiteGL work—to provide a near-real-time
application. “One compelling and indelible record that’s auto-
advantage of using the Oracle matically replicated among each
Open Banking Platform is the participant. (See sidebar for more
metrics that merchants agree to embedded blockchain layer that on blockchain.)
Biz2Credit helps share,” says Sanjay Mathew, senior can connect directly to Oracle ERP Today, Biz2Credit is testing
SMBs get access
director of financial services and applications and permissioned Oracle Blockchain Cloud Service
to short-term
funding through head of the Oracle Open Banking customer financials,” Mathew says. to integrate its marketplace with
alternative Platform. “The extensive visibility permissioned ERP financial data
lenders, such as assures lenders that merchants SMARTER CONTRACTS from all of its merchants’ bank
specialty banks, will fulfill their financial obligations Blockchain is a form of distributed accounts in a public ledger. Using
hedge funds, and based on the terms of the con- ledger technology that maintains the Oracle Open Banking Platform
credit unions.
tract,” Mathew says. records of all virtual currency API to pull merchant financial data
Using Oracle Blockchain Cloud transactions on a network of com- into the blockchain app and then
Service, Biz2Credit helps lend- puters, such as those belonging onto Biz2Credit’s lending plat-
ers verify the terms of the cash to banks, merchants, lenders, and form, the company can conduct
advance in real time and com- auditors. The blockchain network online transactions and confiden-
pare those terms against the was first introduced to the market tially share data in real time with
merchant’s audited financial data in 2008 for bitcoin payments, but lenders, banks, auditors, and other

40 PROFIT MAGAZINE WINTER 2018


contracted parties. “We can now
see the risk profile of merchants in
real time and can make more-
informed decisions about their
ability to pay,” says Bala. “We can
also get permissioned access to
merchant financials without hav-
ing one of our underwriters make
a separate request for third-party
data from banks, credit bureaus,
or the IRS.”
Through the Smart Contracts
feature of Oracle Blockchain Cloud
Service, Biz2Credit can set bor-
rowing thresholds and adjustable
interest rates that will trigger auto-
matically as a merchant’s business
fluctuates. This helps merchants
get the best deal on their loans Smart contracting is particularly develop secure channels for lend-
and also assures lenders that their beneficial for merchants with sea- ers to manage their merchant After seeing
demonstrations of
minimum payment will be made. sonal revenue cycles. “The block- contracts privately. When lenders
the Oracle Open
For example, if a borrower starts chain keeps a ledger of all the join Biz2Credit’s marketplace, they Banking Platform,
making more money and is paying receivables and every payment, can create their own channels on Venkatash Bala
the loan back faster, Biz2Credit can and then will automatically set up the platform, deploy their own (above) and
automatically give the merchant a spread payments in the settlement versions of smart contracts, and other Biz2Credit
break on their interest rates, says ledger to accommodate revenue use their own protocols to connect executives
decided to test
company cofounder and CEO spikes and dips,” Arora says. with other participants.
the platform for
Rohit Arora. “In an offline environ- “It’s like driving on a turnpike its marketplace.
ment, it can’t be done. After a con- SECURE FUTURE where all of the drivers have their
tract is written, the interest rates Biz2Credit is also testing Oracle own lane,” says Kiran Murty, CTO
are locked in.” Blockchain Cloud Service to at Aurablocks, an Oracle partner

41 PROFIT MAGAZINE WINTER 2018


and blockchain specialty firm that tion laws and monitor companies originated nearly US$600 billion in
helped implement the Oracle to ensure that they are securely loans for US-based SMBs in 2015,
Blockchain Cloud Service pilot processing personal data. Because up US$9.2 billion from 2014, open
at Biz2Credit. Using these chan- the open banking architectures banking and blockchain technolo-
nels, lenders benefit from having will give Biz2Credit access to the gies offer new ways to share finan-
a secure platform to record and payment accounts of its merchant cial transaction data automatically,
store confidential transactions customers in the EU, the company securely, and in a way that’s visible
with the merchants under con- is looking to Oracle to help it pre- to all the contracted parties.
tract, get better insight into pare for the impending legislation “We see it, the merchant sees
their changing risk portfolios, and increasing regulatory scrutiny. it, the auditor sees it, and the
and understand how best to “A promise of the Oracle Open underwriter sees it,” Arora says.
manage them. Banking Platform with Oracle With Oracle Blockchain Cloud
By using Oracle Blockchain Blockchain Cloud Service is to Service, Arora adds, “we have
Cloud Service to automate verifi- help companies that conduct lower risk. Our lenders have lower
cations, originations, and collec- business in the EU to comply with risk. And our merchants get a set
tions for merchant cash advances, the GDPR,” says Mathew. With of flexible payment terms that
Biz2Credit estimates that it will cut real-time data sharing, automated adjust to the ebbs and flows of
operating expenses by 21 per- verification, and more-consistent their businesses.”
cent, increase its operating mar- views of data shared between all
gin by 287 basis points, reduce contracted parties, “the platform Sasha Banks-Louie is a brand
its merchant charge-off rate by 51 not only helps banks and fin- journalist for Oracle and a content
basis points, and increase its book techs prepare for the impending strategist for SMBs.
of business from US$1 billion to legislation; it also fundamentally
US$1.25 billion. improves operational efficiencies
Despite these benefits, there and reduces friction caused by ACTION ITEM
are serious vulnerabilities that having to send multiple emails, ■ Read 451 Research's report on
open banking and blockchain APIs make phone calls, or reconcile Oracle Blockchain Cloud
can expose. Starting in May 2018, spreadsheets,” says Mathew.
the European Union’s General In a market that the Small
Data Protection Regulation (GDPR) Business Administration’s Office
will enforce consumer data protec- of Economic Research reports

42 PROFIT MAGAZINE WINTER 2018


PEOPLE DATA
CENTRAL
Health benefits company Anthem
builds analytics portal and team to
improve talent decisions. Joe Knytych, Staff
Vice President of
Talent Insights and
BY ROB PRESTON
Analytics, Anthem
PHOTOGRAPHY BY PAUL S. HOWELL
L
ots of HR organizations talk
about becoming more stra-
tegic and data-driven. But
the talent management group SNAPSHOT
at health benefits company
ANTHEM
Anthem is stepping up to that antheminc.com
challenge, having assembled an
Location:
HR analytics team and created Indianapolis, Indiana
a portal to improve recruiting,
Industry:
hiring, promotion, succession, and Health benefits
other decisions—and ultimately
Revenue:
boost the productivity of the US$84 billion in 2016
entire company.
Employees:
Anthem, whose subsidiary 53,000
health plans serve more than 74
Oracle products:
million people and which posted Oracle Business Intelligence
US$84 billion in revenue in 2016, Cloud Service, Oracle Human
already is an industry leader in Capital Management Cloud
analyzing data to coach con-
sumers on ways to improve their JOE KNYTYCH
health outcomes. Now it’s extend- Staff Vice President
ing that data expertise to its own Length of tenure:
talent management practices. Three years
Key to that effort is the People Education:
Data Central (PDC) portal, whose BA in communication,
University of Illinois; MBA
in general management,
Anthem’s Joe Knytych appreciates Keller Graduate School of
the higher-level insights enabled by Business; MA Education in
a standardized enterprise view of the human resource development,
company’s data. University of Illinois

44 PROFIT MAGAZINE WINTER 2018


74 million
Number of people served
by Anthem’s subsidiary
health plans

interactive “workforce intelli-


gence” dashboard lets HR and
other Anthem users access and
ask questions of a range of inter-
nal and third-party data. What
does our turnover look like for call
center reps in Colorado Springs
or actuaries US-wide? What is the
cost of that turnover? Are we dif-
ferentiating rewards for our top
performers? How many of our
nurses might retire within the next
couple of years? What is the rela-
tionship between national unem-
ployment rates and our own time-
to-hire metrics?
A newly formed Talent Insights recently broke down Anthem’s card” feature explores the rela-
team, whose members include workforce by generational age tionship between HR metrics and Core to Anthem’s
People Data Central
MBAs, PhDs, and CPAs, brings an bands and the potential ramifica- business outcomes to support
(PDC) portal is its
eclectic mix of experiences and tions for company performance, short- and long-term planning. interactive “workforce
perspectives to that analysis. Each highlighting its analysis in the por- The team’s latest report described intelligence”
month, the team curates a differ- tal’s “insight spotlight” section. the relationship between customer dashboard.
ent slice of data. For example, it A high-level “executive score- growth, Anthem’s net hire ratio,

45 PROFIT MAGAZINE WINTER 2018


From ‘hire to retire,’ we’re using data to zero in on important needs
and potential solutions.
—Joe Knytych, Staff Vice President of Talent Insights and Analytics, Anthem

and total costs associated with tions as well as other sources. allow us to invest in our people
internal and external labor. In all, Previously, much of Anthem’s with confidence and sharpen the
PDC provides seven dashboards talent and other HR data was scat- associate experience.”
on “hire-to-retire” HR operations, tered among myriad systems and
50 summary views from which spreadsheets, making it difficult ONE DATA VIEW
users can drill down into detailed to aggregate and compare. Basic The beauty of the portal is that
reports, and links to other relevant questions such as “How many it presents and filters data in
data and training sources. open positions do we have?” and highly visual dashboards, reports,
The cloud-based PDC pulls “What’s our turnover?” would graphs, and other formats so that
together data from and is built yield different answers depending it’s easy to consume, comprehend,
on a range of third-party applica- on who was asked, even within and manipulate, Knytych says.
tions, platforms, and infrastruc- the same workgroup or location. Part of the Talent Insights
ture services, leveraging Oracle Getting a standardized enter- team’s responsibility is to help
Business Intelligence Cloud prise view of the data opens up users mash up different kinds of
Service and Oracle Human Capital the prospect of applying analyt- internal and third-party demo-
Management Cloud (Oracle HCM ics to derive higher-level insights, graphic, performance, compen-
Cloud) at its core. An extract, says Joe Knytych, the staff vice sation, and other data. For exam-
transform, and load (ETL) layer, president who leads the Talent ple, it’s working with Anthem’s
including the Data Sync service Insights team. wellness team to crunch data
of Oracle Business Intelligence “From ‘hire to retire,’ we’re on employees who make use
Cloud Service, pulls in internal and using data to zero in on important of company wellness credits, to
third-party datasets from a range needs and potential solutions,” determine a possible correlation
of cloud and on-premises applica- Knytych says. “These insights with reduced absenteeism and

46 PROFIT MAGAZINE WINTER 2018


employee turnover. Third-party
data is used to benchmark sala-
ries to identify geographic areas
for expansion and for a variety of
other purposes.
But PDC is far more than a
tactical tool, Knytych empha-
sizes. Anthem sees the portal
as a jumping-off point for con-
tinued innovation in the area of
people management.
One recent PDC innovation
is a custom-built channel that
encourages employees to weigh
in confidentially on their work
experiences, as often as they
like, using emojis and limited
text entries. Those ongoing sen-
timents are dynamically turned
into “team vitals” reports, letting
company leaders quickly identify
and address potential productivity
risks. Behind the scenes, Knytych
and his team use that wealth of
data to connect aggregate trends
to performance, advancement,

Knytych sees People Data Central


as a jumping-off point for continued
innovation.

47 PROFIT MAGAZINE WINTER 2018


ARTIFICIAL
INTELLIGENCE: feature offers hiring man- reviews into more-interactive When people think about
THE NEXT HR agers recommendations for exercises; and even the the concept of a connected
best-it candidates. Another use of facial recognition workforce, they envision
TECHNICAL gives recruiters predictions software as an advanced being able to access the
FRONTIER on whether a candidate will management tool. same information and com-
accept a job offer. In Alarcon’s video demon- municate easily in real time.
Artiicial intelligence (AI) During a session at Oracle stration of the chatbot, it But what if we could access
has major implications for OpenWorld 2017, Gretchen alerted a manager that the an employee’s mood as well?
a broad range of business Alarcon, group vice president organization needed a leader Facial recognition tech-
processes — most nota- for Oracle’s HCM strategy, for a speciic project. After nology could eventually do
bly the people-centered outlined a number of other searching internal candi- that, alerting an employee’s
activity of human capital scenarios in which artiicial or dates, the system identiied manager about an unsuccess-
management (HCM). adaptive intelligence even- three potential its, one of ful meeting or the perceived
The latest release of tually could help managers whom needed training. The level of engagement the
Oracle Human Capital develop better connections manager approved the can- employee has on a project.
Management Cloud includes with their employees. didate, and the system sent Such a tool might seem “far
several AI-based features. Possible future Oracle a message to the woman out there,” Alarcon said,
For example, one feature HCM Cloud capabilities now offering her a promotion but customers have already
lets job seekers interact in the research stage include and asking her to complete asked about how to gauge
with so-called chatbots a chatbot that helps iden- an application to attend a the effectiveness or success
to learn more about open tify appropriate candidates training course. The system of meetings. “It’s not crazy-
positions and the employ- for internal promotion; the also asked the manager if town,” she said. “We are
er’s recruiting process or to use of natural language it could send an updated actually thinking about this
get suggestions on other processing to turn text- and project summary to the right now.”
job opportunities. Another screen-based performance relevant team. — Monica Mehta

48 PROFIT MAGAZINE WINTER 2018


We’re tapping into local insights and formulating long-term plans
based on data, not speculation.
—Joe Knytych, Staff Vice President of Talent Insights and Analytics, Anthem

and other talent outcomes. HR organization (diversity and and raise its profile across the
“Engagement is now a daily inclusion, benefits, HR busi- company. For example, the team
topic as opposed to an annual ness partners, and so on), as developed a model that identi-
event,” Knytych says. “More well as decision-makers outside fies causes of turnover and accu-
importantly, we’re learning what of HR, see “multivariant” views rately predicts first-year attrition,
drives a positive experience and of the people data, Knytych which Anthem leaders are using
what might happen following says. For instance, how are the to increase retention and inform
a downtick.” high-potential associates they’ve future hiring profiles.
In many cases, he notes, com- invested in advancing com-
pany leaders find nuggets they can pared with people elsewhere in DEEP-DIVE PROJECTS
act on immediately, such as ideas the company? In addition to standardizing on
to improve processes, enhance “The business partners typi- key metrics, managing the portal’s
systems, or reprioritize resources. cally have had access only to their self-service data capabilities, and
“The voice of our associates is business unit data, looking at their deciding which views and sto-
stronger than ever,” he says. people and talent,” he says. “Now ries have the most relevance, the
“We’re tapping into local insights they have access to enterprise Talent Insights team has commit-
and formulating long-term plans talent trends, either to benchmark ted to take on several high-impact,
based on data, not speculation.” against or to say, ‘Let’s connect deep-dive data analytics projects
with another group that seems to a year, which are chosen by the
BREAKING DOWN SILOS have solved this problem.’” senior HR management team in
More broadly, the Talent Insights As such, PDC is helping association with the company’s
team is helping the other cen- Anthem’s talent management other executive leaders. Among
ters of expertise within Anthem’s team forge new relationships the current priorities are projects

49 PROFIT MAGAZINE WINTER 2018


around workforce productivity, Anthem’s business leaders types of data—“and not break
turnover, and diversity. have used data and analytics for what we’ve done before.”
There’s no shortage of demand years to make informed decisions The future of analytics at
for the team’s services, Knytych and investments, Knytych notes. Anthem, he says, is “analytics for
says. “Generally speaking, peo- Now—thanks in part to its Oracle- everyone.” That is, any nontechni-
ple see value in data and analyt- based cloud platform, which took cal associate should be able to go
ics,” he says. “The constraint is less than six months to deploy, as into PDC to form a hypothesis or
capacity, as these projects can be well as the subsequent training— “curate a story” for his or her own
resource-intensive and iterative in the HR organization is able to purposes. Using “guided path”
nature. Relentless prioritization is match that same level of sophisti- views and a variety of data filters,
needed to ensure we’re focused cation when it comes to decisions HR managers and other associates
on the right questions.” about the company’s people. can dynamically generate reports
Anthem HR is investing in cul- “Taking advantage of new tech- and dashboards to help them
tivating a data mindset and data nology and lessons learned, we improve hiring, promotion, succes-
competencies across the com- are leapfrogging traditional invest- sion, and other key decisions.
pany. It provides Talent Insights ments,” he says. “We’re not build- “We’re not trying to put our
team members with regular train- ing a data center for HR. We’re not arms around it and say we own
ing and stretch assignments to hiring teams of database adminis- data and analytics,” Knytych says.
build their predictive analytics, trators. With support from our IT “We want everyone in HR to take
data visualization, and storytell- organization, we’re going straight ownership of analytics and use
ing skills. Other HR associates get to the cloud, all-in, maintained data to improve talent decisions.”
training to improve their data acu- by Oracle and managed by us.
men and ability to access, manip- This approach improves total cost Rob Preston is editorial direc-
ulate, and customize the portal’s of ownership and enables HR to tor in Oracle’s Content Central
data. A Talent Insights Network, move at the speed of business.” organization. Follow Preston at
including representatives from A critical consideration, @robpreston.
outside the HR organization, Knytych says, was finding a plat-
serves as something of an advi- form that’s flexible and scal-
sory board on PDC enhancements able enough to accommodate ACTION ITEM
and priorities. ever-increasing amounts and new ■ Register for Oracle HCM World

50 PROFIT MAGAZINE WINTER 2018


PROTECTIVE MEASURES
THOUGHT LEADERSHIP

Nimble technology solutions can defend against today’s


ever-changing security threats.
BY MINDA ZETLIN

In the confusing world of enterprise security, one


thing is certain: the potential for devastating attacks is
higher than it’s ever been. “Ten or fifteen years ago,
there were security concerns on the internet, but noth-
ing like what we’ve seen in the last couple of years,”
BIG IDEAS

says Rohit Gupta, group vice president of cloud secu-


rity products at Oracle. “Back then, these were con-
sidered annoyances—where someone would deface
a website, for example. Now it’s highly orchestrated
and highly funded. Many attacks are nation-sponsored.
Businesses have to be vigilant like they’ve never had to
in their histories.”
Compounding the problem is the fact that security is
a constantly moving target, with new threats appearing
as quickly as known threats are dealt with. “We use the
term arms race,” says Douglas C. Schmidt, professor of
engineering, computer science, and computer engineer-
ing at Vanderbilt University. “There’s a race between
people trying to protect themselves and the bad guys
and bad gals who are trying to break in. The adversaries
are getting more and more talented. It’s really hard to
keep up.”
To help enterprises cope with the ongoing menace,

51 PROFIT MAGAZINE WINTER 2018 ILLUSTR ATION: WES ROWELL


Oracle’s new group of security
THOUGHT LEADERSHIP

products is designed to protect


data in the hybrid cloud environ-
ment used at most large orga- As users are connecting from anywhere using both
nizations these days. Here’s a
look at some of the most press-
managed and unmanaged devices, the approaches
ing security-related business used to secure the old network perimeter are no
problems enterprises face and
how emerging technologies can
longer really relevant.
address them. —ADINA SIMU, VICE PRESIDENT OF PRODUCT MANAGEMENT, ORACLE CASB CLOUD SERVICE
BIG IDEAS

PROBLEM: THE DISAPPEARING


PERIMETER
SOLUTION: HYBRID CLOUD work, which inherently provided a more true as applications and data
SECURITY greater level of control.” migrate to the cloud.
In the past, the best way to keep a Many IT departments still use To meet this challenge, a range
company’s data safe was to build this approach to security, but it’s of new cloud-based security solu-
a wall around its internal network grown less and less effective. tions has emerged, Simu explains,
that was as impenetrable as pos- “Enterprise functions in the such as those built into Oracle
sible. “In the past, the entire orga- cloud are driving the dissolu- Cloud. The best course of action
nization’s electronic access was tion of the network perimeter,” is to rely on these new security
completely cordoned off,” says says Adina Simu, vice president solutions, which can protect an
Prakash Ramamurthy, senior vice of product management, Oracle enterprise’s data and processes
president and general manager, CASB Cloud Service. “As users wherever users may be and which
systems management and security, are connecting from anywhere offer consistent security features
Oracle Cloud. “You couldn’t bring using both managed and unman- across hybrid deployments.
a random home machine and do aged devices, the approaches “This move to the cloud, it’s
something with it, and you couldn’t used to secure the old network not rip-and-replace,” says Darren
be outside your organization’s net- perimeter are no longer really Calman, vice president of product
work, sitting at home or in a coffee relevant.” Instead, she says, users management, Oracle identity man-
shop, and get access. You had to themselves represent the new agement and security. “People
go through a virtual private net- perimeter. This will only become have invested time and money

52 PROFIT MAGAZINE WINTER 2018


THOUGHT LEADERSHIP

targeted and not neces- new wave of security attacks with the theft of creden-
sarily sophisticated,” says are different from the way tials, with miscreants then
ONCE PURELY Troy Kitch, senior direc- they were carried out in the using those credentials to
MALICIOUS, tor of Oracle cloud secu- past,” says Adina Simu, vice steal data, hijack devices, or
rity. “Over time, they’ve president of product man- install ransomware.
CYBERCRIME become more sophisti- agement, Oracle CASB This is why most security
IS NOW BIG cated and more targeted.” Cloud Service. experts recommend assum-
BUSINESS
BIG IDEAS

Both nations and individ- “They are no longer car- ing that your organization’s
uals have learned how ried out by humans; they are defenses will be breached at
to attack organizations, carried out by bots, hijacked some point, and it’s why they
There’s a reason cyber- he says, and there are real devices that start attacking emphasize the importance
attacks and data theft are incentives to do so. “There’s other sites and other orga- of having visibility into both
so much greater a threat this underground economy nizations. These attacks are your data and your users, as
than they were a few years that thrives on data breaches no longer within the network well as having an automated
ago: Cybercrime has become and selling information.” perimeter of the enterprise — way to immediately remedi-
very lucrative. Picture a And where data theft was in many cases they’re outside ate security breaches.
cybercriminal and you might once limited to those with in your DNS [Domain Name “The most secure compa-
imagine a nefarious igure the sophisticated knowledge System] service or your cloud nies in the world are get-
in a hoody, hunched over a of how to pull it off, these provider or your public- ting attacked. It’s a contin-
bank of computers in a base- days anyone who wants to facing application. ual thing,” Kitch says. “As
ment somewhere. But these can simply purchase on the And they’re not static: organizations, we have not
days it might instead be a black market tools to do someone could penetrate done enough to address
multimillionaire relaxing in a so and then earn back that some of your defenses these threats. A lot of peo-
mountaintop villa purchased investment by selling the and then lie low waiting ple think, ‘I’m secure today;
with the proceeds of his stolen data. for the right opportunity therefore I’ll be secure
ill deeds. And if today’s enterprises to move laterally and steal tomorrow.’ But as secu-
“We used to have imper- can beneit from automation, credentials.” In fact, many rity threats shift, that isn’t
sonal attacks, not necessarily so can cybercriminals. “The attacks these days begin necessarily true.”

53 PROFIT MAGAZINE WINTER 2018


in developing their on-premises accounts wind up with inappropri- monitors user behavior and looks
THOUGHT LEADERSHIP

assets. So you have some on ate security. for abnormal usage patterns of
premises and some in the cloud, “People are setting things up cloud applications. Such a ser-
and you need a single pane of with the wrong configurations,” vice offers the added benefit of
glass to manage both. That’s says Jules White, assistant pro- giving you insight into—and per-
where hybrid security comes in.” fessor of computer science at haps control of—shadow IT, espe-
Vanderbilt University. In one cially because the CASB can scan
PROBLEM: SHADOW IT AND recent case a defense contrac- many of the most commonly used
MULTIPLE CLOUD VENDORS tor stored personal data for job cloud-based applications such
SOLUTION: A CLOUD ACCESS applicants—some of it classified as Dropbox, Box, Evernote, and
SECURITY BROKER as top secret—in an Amazon Web Microsoft Office 365.
BIG IDEAS

While IT leaders might talk about Services S3 bucket configured to Using one can be eye-opening.
moving to “the cloud,” the fact is allow public access. There have “Ask an IT organization how many
they’re usually moving to several been other similar incidents with applications its company has that
clouds. Indeed, Simu says the other cloud providers. With per- access the cloud. For a small or
cloud is not just SaaS [software haps thousands of different con- midsize organization, they’ll say
as a service]—a lot of workloads figuration combinations available 10,” says Troy Kitch, senior direc-
are moving into platform as a for some cloud systems, it’s all too tor of Oracle cloud security. “Then
service [PaaS] and infrastructure easy to make a mistake. you run a CASB and it will turn out
as a service [IaaS] creating a het- A cloud access security bro- to be 300. In a large organization
erogeneous cloud environment ker such as Oracle CASB Cloud they may say 100, and in reality it
within the enterprise. "The aver- Service can take the guesswork will be 3,000.”
age enterprise will use six differ- and errors out of configuring
ent cloud providers just to run its cloud accounts, and it can give IT PROBLEMS: THE SECURITY
workloads,” she says. departments visibility into all their SKILLS GAP AND THE NEED
Customers share responsibil- cloud-based data. “CASBs include FOR SPEED
ity for security to varying degrees big data analytics and deliver sur- SOLUTION: IDENTITY
in each of these cloud engage- gical insight for forensic analysis,” MANAGEMENT
ments, so managing different Simu says. “Gartner says CASBs By 2019, there will be at least
cloud deployments can lead to will soon be what firewalls used to 2 million unfilled security jobs
confusion. A key danger is “con- be in the on-premises world.” worldwide, according to the
figuration drift,” in which cloud A CASB with machine learning House of Lords Digital Skills

54 PROFIT MAGAZINE WINTER 2018


Committee in the UK. “We tell security tools they already have our security posture at the speed
THOUGHT LEADERSHIP

students that this is one of those are not appropriate for a hybrid of business.”
eternal problems,” Vanderbilt's cloud environment. And that con- The best way to accomplish this
Schmidt says. “There will never be cern might be holding back cloud is to harness the power of artifi-
a time when security expertise will adoption. In a survey last year by cial intelligence. Prior to the avail-
not be a valuable skill.” consulting firm Baker McKenzie, ability of solutions such as Oracle
Automating as many processes 88 percent of respondents cited Management Cloud, existing tools
as possible is the only viable solu- security as the primary reason they depended on operators to ask
tion to the skills shortage, experts were hesitant to move to cloud. the right questions, according to
agree. So Oracle has introduced Putting identity at the center of it Ramamurthy. “We decided to use
orchestration and remediation all, Kitch adds, is the best method artificial intelligence to understand
BIG IDEAS

solutions that leverage context for protecting data. what normal behavior was. And
and automation principles. “We And while the skills gap puts when things deviate from that
can deliver both supervised auto- added pressure on IT depart- learned normal behavior, we give
mation, making changes only with ments and their mandate to keep intelligent information back to the
human approval, and unsupervised vital data secure, these teams are customer,” he says.
automation, which makes changes also under pressure to deploy new Over time, the service creates a
automatically,” Gupta says. technology at an unprecedented profile of a user’s typical behavior,
Sensitive data that’s unencrypted pace. For many veteran IT profes- he explains. So if a user accesses
is a good example of how unsu- sionals, the obvious solution is to only marketing systems and emails
pervised automation can be use- lock everything down, presuming from the United States 99 percent
ful, he adds. “Guess what? That’s that all users and processes are of the time, and the service sees
black and white. It’s unencrypted, guilty until proven innocent. But that same user’s credentials log-
and that’s wrong. It should be that doesn’t work in today’s world. ging in from a new geographic
encrypted. Turn encryption on.” “There is business pressure not location and accessing the compa-
An identity-centered approach to say no to innovation,” says Dan ny’s finance database, that might
is the best way to manage secu- Koloski, vice president of product trigger an automatic response.
rity in the cloud, Kitch says. “A management at Oracle. “People That response might simply
lot of security tools in particular in the business want to spin faster be that the next time the user
were not created with cloud in and demand more flexibility out of logs in, he or she is required to
mind,” he says. As a result, most IT. Saying no is not an option, so use two-factor authentication and
enterprise customers believe the we have to continuously update enter a five-digit code that has

55 PROFIT MAGAZINE WINTER 2018


been texted to a mobile phone.
THOUGHT LEADERSHIP

“The odds that someone who


compromised your credentials
also has your phone are pretty False positives are as much a problem for enterprises
low,” Ramamurthy explains. “We
don’t need to create a five-alarm
as not finding the real issue.
fire around this, because false —PRAKASH RAMAMURTHY, SENIOR VICE PRESIDENT AND GENERAL MANAGER, SYSTEMS MANAGEMENT
positives are as much a problem AND SECURITY, ORACLE CLOUD
for enterprises as not finding the
real issue.” If a security system
generates too many false posi-
BIG IDEAS

tives, users and IT staff will simply applications the user is accessing.” ready. “GDPR has many organiza-
start assuming that every alarm And when time is of the tions concerned because a mean-
is unwarranted. Worse, if false essence, automation makes all the ingful 4 percent of your revenues
alarms prove too much of an difference. “Remediation needs to could be fined,” Ramamurthy says.
inconvenience, users might start happen in real time,” Simu adds. “That’s very, very tangible.”
looking for ways to circumvent “In many cases, these attacks are GDPR, which aims to protect
security altogether. carried out by bots and tools, and the privacy and personal data of
An identity-centric approach they don’t wait a lot. When they EU citizens, is merely the newest
also helps enterprises respond find a vulnerability, they move very compliance challenge for compa-
to threats without unduly incon- quickly to the next level.” nies already coping with Sarbanes-
veniencing users. “You can surgi- Oxley, the Health Insurance
cally remediate a specific user or PROBLEM: MAINTAINING Portability and Accountability Act
users rather than having to shut COMPLIANCE IN A SHIFTING (HIPAA), and the Payment Card
down an entire application,” Simu LANDSCAPE Industry Data Security Standard
explains. At the same time, you SOLUTION: ORACLE SECURITY (PCI DSS). Most IT organizations
can limit that user’s ability to do SOLUTIONS FOR GDPR are also responsible for comply-
harm. “Depending on what a user In May 2018, the European ing with internal and external
is doing, you can say, ‘OK, this is Union’s General Data Protection audit rules, as well as partner and
malicious enough,’ and remediate Regulation (GDPR) takes effect. customer agreements. Because
with actions that affect not only Many enterprise IT and security Oracle customers have had these
that application but also other leaders are scrambling to get responsibilities for years or some-

56 PROFIT MAGAZINE WINTER 2018


times decades, Oracle is well
THOUGHT LEADERSHIP

equipped to help them stay com-


pliant with GDPR as well.
“GDPR is fundamentally about People in the business want to spin faster and demand
protecting personally identifi-
able information,” Koloski says.
more flexibility out of IT. Saying no is not an option, so
“Among other things, the reg- we have to continuously update our security posture at
ulations expect enterprises to
demonstrate that they have con-
the speed of business.
trol and they know who has access —DAN KOLOSKI, VICE PRESIDENT OF PRODUCT MANAGEMENT, ORACLE
and that they can respond when
BIG IDEAS

they find violations.” Unfortunately,


he says, most enterprises don’t
have that visibility or the capability tion capabilities, machine learning, premises and in cloud, the com-
to respond because of their out- AI-powered analytics, and auto- pany understands how to provide
dated security approaches. mation, all in an integrated suite,” security and remediation across
Oracle solutions, including Ramamurthy says. “If you don’t a hybrid cloud, he adds. “We’re
Oracle Advanced Security and have all of those pieces, you won’t one of the few vendors qualified
Oracle’s security-focused cloud be able to automate as much to address these next-generation
services, can help. “To help as you need to. Enterprises are security challenges.”
achieve regulatory compliance, struggling to come to grips with
organizations should encrypt the automated security challenge, Minda Zetlin is a coauthor, with
data both at rest and in transit,” because for the past 30 years, Bill Pfleging, of The Geek Gap:
Simu says. “They should be able they haven’t needed to do that.” Why Business and Technology
to collect system logs, maintain Oracle is in a unique position to Professionals Don’t Understand
least privilege and separation of help because of its history, he says. Each Other and Why They Need
duties, and control user access.” “We understand what it is to deal Each Other to Survive (Prometheus
This is especially important in the with huge amounts of data. We Books, 2016).
case of production databases also have compute horsepower.”
involved in the daily processing And because Oracle has for years ACTION ITEM
of transactions. offered products that work across ■ Modernize Your Security
“Our solutions are data collec- complex IT environments, both on Operations Center

57 PROFIT MAGAZINE WINTER 2018


SECURE THE FUTURE

It’s time for a new approach to


cybersecurity that creates a protective
foundation for the future.

A once-in-a-generation shift, at Forrester Research, recently


unlike anything CIOs and chief told the Wall Street Journal,
PERSPECTIVE

information security officers cybersecurity will become a


(CISOs) have seen in their top priority for many CIOs
careers, is upending cyber- in the coming year as com-
security strategies today. On panies increasingly monetize
the surface, things look famil- data and see it as “an incred-
iar—after all, enterprise leaders ibly valuable commodity.”
have long been playing a per- Cyberthieves are seeing the
sistent cat-and-mouse game same trend.
with well-funded hackers, and At the same time, secu-

CYBERSECURITY’S that’s not about to change.


But dig deeper, and it’s
obvious that the stakes are
rity challenges are growing as
well-defined network perime-
ters give way to highly distrib-
NEW NORMAL getting higher. That’s because
all enterprise information, not
uted enterprise ecosystems
created by public and hybrid
just traditional targets such as clouds and mobile applications.
financial accounts, is gaining Making matters worse,
ROHIT GUPTA, Group Vice President in value as data and analytics most enterprises simply can’t
of Cloud Security Products at Oracle
transform business models. As attract and retain enough
Jeff Pollard, principal analyst qualified security talent. One

58 PROFIT MAGAZINE WINTER 2018 PHOTOGR APH: BOB ADLER / THE VERBATIM AGENCY
study estimates that 1 mil-
SECURE THE FUTURE

lion such jobs currently go


unfilled, a number that could
more than triple by 2021.
A pervasive threat is the shadow IT systems people adopt
The result: it’s time for without getting approval from the IT department.
a new approach to cyber-
security that creates a protec-
tive foundation for the future.
automated systems can than on safeguarding data, PREPARE FOR A
AUTOMATION IS quickly identify the breach employees might not con- NEW NORMAL
PERSPECTIVE

THE ANSWER and alert security officials or sider where information will Sophisticated cloud-based
Part of the answer comes take predetermined actions be stored, whether it will be security platforms, such
with new, cloud-based secu- to limit damage. encrypted, or how regularly as Oracle Identity Security
rity platforms that provide an Automation can also the associated servers will Operations Center and
integrated suite of services. mitigate another pervasive perform backups. Oracle Management Cloud,
With automation of security threat: the shadow IT sys- The latest security plat- give CIOs and CISOs the
processes as a key compo- tems people adopt without forms perform shadow dis- automation tools they need
nent, the best of these plat- getting approval from the IT covery—the ability to identify to forecast, prevent, detect,
forms offer everything from department. Common exam- applications running in the and remediate cybersecurity
identity management and ples include web-based ser- enterprise, who is using them, threats. Just as important,
cloud access security brokers vices for note taking and file the sensitive or regulated as security professionals use
to regulatory compliance and sharing, which are often free data that is flowing in and out resources like these to for-
configuration monitoring. to download and danger- of them, and whether hack- tify their organizations today,
By augmenting all aspects ous to use when they don’t ers are chatting about the they’re preparing their organi-
of security processes, enter- come with enterprise-class vulnerability of the programs zations for tomorrow’s brave
prise cyberdefense systems security controls. If employ- on the Dark Web. Based on new world of cybersecurity.
can automatically detect ees are storing customers’ the associated risks, CIOs and
vulnerabilities and fix them financial records in these CISOs can take appropriate ACTION ITEM
before an attack takes place. consumer-oriented platforms, action, whether that’s steering ■ How to Modernize Your
For instance, if an organized that’s a problem. Because end users to approved alter- Security Operations Center
group of hackers finds a way they’re focusing on conve- natives or licensing enterprise
to break through defenses, nience and productivity rather versions of the applications.

59 PROFIT MAGAZINE WINTER 2018


EVOLVING THE ENTERPRISE
THOUGHT LEADERSHIP

Award-winning CIOs discuss how emerging technologies require a change


in focus, strategy, culture, and infrastructure
BY MONICA MEHTA

Leading CIOs in every industry around the world


are experimenting with emerging technologies such
as artificial intelligence (AI) and machine learning,
the Internet of Things (IoT), chatbots, blockchain, and
natural-language processing (NLP). Gartner’s 2017 CIO
BIG IDEAS

Agenda Report established that one of the differentiat-


ing practices of a high-performing business is focusing
investments on moving the technology core forward
and testing emerging technologies.
As the CIO of one of those successful businesses,
Motorola Corporate Vice President and CIO Greg
Meyers calls technologies such as AI “the fourth gen-
eration of change” in industry, after the invention of
mechanical power, the advent of electricity, and the
development of digital systems.
“You can’t just ignore it because of what could go
wrong,” says Meyers. “You’ve got to adopt it and under-
stand it, because it’s something that can provide tre-
mendous commercial value. The more people under-
stand it, the better it will be, and the more we will be
able to manage it.”
Adoption of these new technologies can seem daunt-
ing, but the CIOs featured in this article are comfort-

60 PROFIT MAGAZINE WINTER 2018 ILLUSTR ATION: WES ROWELL


able with taking on the challenge.
THOUGHT LEADERSHIP

These technology leaders sug-


gest four main strategies enter-
prises should keep in mind when
If you're transparent about what’s happening and
approaching emerging technolo- create a safe atmosphere for experimentation, over
gies: focus on the customer expe-
rience, be strategic in implement-
time people will feel comfortable adopting these
ing the technology for specific new technologies.
business problems, develop the
—GREG MEYERS, CORPORATE VICE PRESIDENT AND CIO, MOTOROLA
right team and culture for innova-
tion, and ensure that your infra-
BIG IDEAS

structure is modernized and ready.

START WITH THE CUSTOMER the technology we look at, and Motorola’s Meyers says the con-
Every CIO interviewed prioritized how we evaluate it, starts and sumerization of IT has put pressure
one strategy when thinking about ends with that lens.” on CIOs to make their companies’
implementing emerging tech- Yogesh Malik, group chief tech- IT more modern—both internally
nologies: focus on the customer nology officer at VEON, a global and externally. “The next genera-
experience. Scott Dillon, executive telecommunications provider tion of employees as well as cus-
vice president, CTO, and head of headquartered in Amsterdam, the tomers are demanding that IT no
enterprise information technology Netherlands, is looking specifically longer be a back-office function—
at the global banking and finan- at AI and NLP as keys to a better it’s very much in the front office
cial services company Wells Fargo, customer experience. VEON has and plays a big role in customer
says companies need to start by already introduced chatbots with experience,” he says.
understanding their customers’ customers in Russia and some sur- Meyers says the customers
expectations and needs. rounding countries. of Motorola, an American data
“Everything we think about is “How can I make the end con- communications and telecom-
driven by the customer experi- sumer’s life easier? We are taking munications equipment pro-
ence—enabling that customer to AI and language processing to the vider, are looking for devices
do business the way they want to next level in practical applications that allow them to communicate
do it to get the experience they’re and simplifying our interface with as well as share data and intel-
driving to,” says Dillon. “And so customers,” says Malik. ligence. Motorola is working on

61 PROFIT MAGAZINE WINTER 2018


THOUGHT LEADERSHIP
with a modern technology Rakuten’s productivity and process, and technology.
architecture, while grow- business value, making Meyers implemented cloud
ing revenue and reducing the most of the company’s technology, moved to man-
operating costs. big data, and dedicating aged data centers to free
time and resources to resources, and moved disas-
Scott Dillon, Executive mobile —which accounts ter recovery to the cloud
Vice President, Chief for more than 50 percent to give the company more
Technology Officer, of its transactions. capital and visibility into
and Head of Enterprise recurring revenues.
STELLAR Information Technology, Yogesh Malik, Group Chief
PERFORMANCE
BIG IDEAS

Wells Fargo Technology Officer, VEON Fredson Oliveira, CIO,


Since joining Wells Fargo, After launching high-speed Grupo Ultra
Dillon has helped to 4G/LTE networks in six coun- Under Oliveira’s direction,
The CIO of the Year awards, focus the organization on tries in just one year and Grupo Ultra — including
part of the Oracle Excellence standardizing and modern- consolidating networks after Ultragaz, a liqueied
Awards, are given annually izing technology across the mergers in Italy and Pakistan, petroleum gas distribution
to CIOs who have displayed bank, with the goal of reduc- Malik has taken VEON on an company; Ipiranga, a fuel dis-
unequalled performance and ing risk and costs through unprecedented global busi- tribution company; Oxiteno,
vision in using Oracle tech- simpliication. Dillon consoli- ness support system transfor- a multinational chemical com-
nology to improve the orga- dated and modernized more mation, creating state-of-the- pany; and Ultracargo, a bulk
nization, the customer and than 5,000 of Wells Fargo’s art, data-centric billing and liquids storage and logistics
partner experience, and the Oracle databases—a project customer care systems. company— successfully con-
bottom line. Congratulations seen as one of the most suc- solidated all of its companies’
to the 2017 winners: cessful IT initiatives at Wells Greg Meyers, Corporate disparate enterprise resource
Fargo today. Vice President and CIO, planning solutions.
Dave Curran, CIO, Motorola Solutions
Westpac Group Yasufumi Hirai, Executive To support Motorola’s trans-
Curran and his team Vice President, CIO, and formation from a products
embarked on an enterprise- Chief Information Security company to a software com-
wide transformation to dig- Officer, Rakuten pany, Meyers has focused on
itize customer capabilities Hirai is focused on driving the intersection of people,

62 PROFIT MAGAZINE WINTER 2018


a voice-recognizing chatbot that “Try to get underneath a known era and streams the video back
THOUGHT LEADERSHIP

can participate in a two-way talk problem in the organization to the command center in real
group, so that a police officer today—for instance, forecast accu- time. This would eliminate the
or firefighter can interact with a racy—and be strategic about find- need for officers to place a call
chatbot when checking a license ing the solution,” he says. for additional help, and it would
plate or identifying a person. One of the most pressing prob- also send backup resources faster
Using AI and voice in this way lems for one of Motorola’s most and provide automatic video foot-
would speed up the relay of infor- important customer segments— age of the incident for legal and
mation and free up resources in law enforcement—is the identifi- training purposes.
the command center to perform cation of missing children. Using
nonroutine tasks. AI technology, the company is A SEEDBED FOR INNOVATION
BIG IDEAS

developing wearable cameras that VEON’s Malik says the first step
SOLVING PROBLEMS can use image detection to match to successfully introducing new
Wells Fargo’s Dillon says that when faces with a database of children technologies into the business is
thinking about technologies such that have been reported missing. developing the right people and
as machine learning or IoT, many The AI system could push images, culture. VEON is actively searching
technology leaders get lost in stored in the cloud, to the camera for new talent with skills in AI and
the “shiny object” and follow the as a police officer walks around an machine learning. Beyond that, he
“trend of the moment.” Instead, he area, alerting the officer if there is says, “we are constantly thinking
says, evaluate the technology to a match. about the question, how do we
find an outcome that leverages it. Another major concern for law build a culture that can embrace
For Wells Fargo, these out- enforcement is the safety of police these new technologies?”
comes include making the cus- officers. To solve that problem, Indeed, the role of the CIO
tomer experience frictionless, Motorola is using IoT technology and IT has changed drastically
automating routine business pro- to work on a system of sensors over the past few years, as IT
cesses to cut costs, and providing for law enforcement firearms. The becomes a business partner. All
better fraud detection. “Since day physical sensors can detect when three CIOs agree that compa-
one, we’ve been making sure that a gun has been pulled out of a nies must recruit and develop IT
our work is purpose-driven from holster and the officer’s heartrate leaders and staff who are able to
the business,” he says. is elevated. The system then sends straddle both worlds.
Motorola’s Meyers links the a message that automatically turns “As a technology-enabled
technology to a business issue. on the officer’s wearable cam- organization, our product is now

63 PROFIT MAGAZINE WINTER 2018


defined by our technical pace, so
THOUGHT LEADERSHIP

the technology leaders must truly


understand the business as well
as go deep in technology,” Wells
Everything we think about is driven by the customer
Fargo’s Dillon says. “We have to experience—enabling that customer to do business the
be proactive in bringing solutions
that improve the business, be
way they want to. And so the technology we look at,
strategic in presenting and imple- and how we evaluate it, starts and ends with that lens.
menting them, and then commu-
—SCOTT DILLON, EXECUTIVE VICE PRESIDENT AND CTO, WELLS FARGO
nicate and deliver. It’s challenging,
but you have to be at the table
BIG IDEAS

from the beginning—not just


when things go wrong or you have
to discuss budget.” handle help-desk tickets, and with it,’” he says. “If you’re transparent
Other key aspects of creating a proactive AI that can sense issues about what’s happening and cre-
culture that embraces innovation before they become a problem. ate a safe atmosphere for exper-
and new technologies are embrac- For example, if a device has low imentation, over time people will
ing a “test and learn” strategy memory or increases in tempera- feel comfortable adopting these
and creating a structure that fos- ture, the software can sense these new technologies.”
ters experimentation. Both Wells issues, alert the owner, and sched- Wells Fargo has innovation
Fargo and Motorola have a head ule an appointment to fix the labs that bring the business and
of innovation who leads a team problem. “If you push all that work IT sides together to tackle busi-
that is specifically responsible for to computers, you’ll decrease ness problems. “We put the use
accelerating each company’s deliv- the amount of time to resolve case around what we’re trying to
ery of next-generation technolo- issues and cut costs as well,” solve for, find the emerging tech-
gies. These teams are constantly says Meyers. nologies that might fit, and start
experimenting with pilot programs Meyers says companies must to evaluate them in a thoughtful
that bring these new technol- have a culture that allows employ- way in a controlled innovation lab.
ogies to solve problems within ees not only to experiment but Then, where it makes sense, we
the business. also to fail. “You have to make it keep fleshing those out and tak-
Motorola is experimenting with safe for people to say, ‘Hey, if this ing them forward,” says Dillon.
chatbots and machine learning to doesn’t work, we can abandon Wells Fargo is experimenting with

64 PROFIT MAGAZINE WINTER 2018


using AI and robotics to create you to be more agile in adopting embrace and adopt emerging
THOUGHT LEADERSHIP

omnichannel experiences that new capabilities,” says Dillon. “You technologies. They are actively
understand where customers are can react faster, and your infra- experimenting with and imple-
in the pipeline and how they want structure is elastic. If your goals menting them now. But they’re
to interact with the bank. The are to drive speed to market, doing so strategically and
company is also using chatbots to drive down costs, and drive the with purpose.
handle self-service requests, and customer experience, simplifying “There’s a lot of overprom-
machine learning to detect fraudu- your infrastructure will allow you ising and underdelivering right
lent transactions. to use new technologies that help now,” says Dillon. “A lot of growth
Of course, security is para- achieve these goals.” needs to take place in the areas
mount to all three CIOs, and any Malik also sees a cloud-centric of emerging technologies. And
BIG IDEAS

new technologies that are rolled infrastructure with minimal cus- part of that growth is making sure
out must adhere to strict secu- tomizations as an important build- we’re operationally ready to han-
rity guidelines and procedures. ing block for next-generation tech- dle it, as well as understanding the
“Each of our programs is engi- nologies. He says switching off outcomes that we’re driving for.”
neered with security top of mind,” legacy systems is the biggest chal-
says Dillon. lenge CIOs need to address—but Monica Mehta is a freelance writer
the payoff is worth the investment. and a frequent contributor to Profit.
CLOUD AS THE “As software and hardware
BUILDING BLOCK become decoupled, simplify-
Because better customer experi- ing the back end has helped us ACTION ITEMS
ence is the most important out- reach the customer more eas- ■ Oracle Blockchain Cloud Service
come of a successful emerging ily,” says Malik. “We have more ebook
technology strategy, a modern time to spend on personalizing ■ Oracle Artificial Intelligence
infrastructure is the foundation of our user interface, building out
any emerging technology initia- new capabilities, and engaging
tive. Dillon says moving core tech- with customers.”
nology to the cloud is essential
for conducting successful experi- EMBRACE NEW TECH NOW
ments in AI and IoT. As exemplified by these three
“Being in a private cloud and technology leaders, success-
standardizing your platform allows ful companies aren’t waiting to

65 PROFIT MAGAZINE WINTER 2018