>>live from Las Vegas. It's the Q covering AWS executive. Something >>brought to you by Accenture. >>Welcome back, everyone. We are kicking off day two of the cubes. Live coverage of the ex center Executive Summit here at AWS. Reinvent, I'm your host, Rebecca Knight. We have three guests for this panel. We have some bad meta. He is the chief information officer at Putnam based in Boston. Where? Boston People together. Thank you so much for coming on the show. Nitin Gupta. He's the partner and solutions lead. Financial service is at AWS Welcomed and Shale Jane back again for more. Who leads the data business group in North America. Thanks >>so much the last time. >>Yes. We can't get enough of each other. So thank you so much for coming on the show. We're talking about the data data journey and financial service is so I'm gonna start with you, Sam. It tell us. Tell our viewers a little bit about Putnam. That your assets under management. Your employees? >>Sure. So you know, problem is a global firm. We are a leader in mutual funds in the mutual fund business. We're in 84 year old organization. We based in Boston on, and we are known for innovation. We've done a lot of firsts in our industry on our focus has always bean looking after the needs of our shareholders. So even as we launch digital transformation, we launch it with the lens off, making sure we're covering the needs of our shareholders. >>So what was the impetus? What was the driving force to it? To embark on this cloud journey? >>Sure, So you look recovered. The financial markets recover industries. We look at our own industry as well. Things are changing rather rapidly, right, if I may just turn it around a little bit. Last year's letter from our CEO Bob Reynolds, said That problem now has Maur increasingly Maur four and five star funds, according to Morningstar, then we've had it as a percent of total funds ever. Before we had inflows, when the rest of the industry were having outflows, we built a digital platform and we said digital technology at problem is how we gonna view the internal technology department who will help enable our company to go and provide the investment insights directly to our advisors and to our shareholders so that they can benefit from the performance that we're we're delivering, right? We can only do that through a change. What's really going on in our industry is that there's more choice that's now available to shareholders than ever before. So while we talk about where there's outflows in in in our world, there's actually a lot of flow happening, right, So So it's for us to figure out how. How are the tastes changing right? What are people buying would do advisors need? When do they need them and can reposition ourselves to service them at scale, and so that those are the things that are driving our business? For us to continue to serve the shareholders needs. We really need to be in tune with where the market is. So we're helping do that at Putnam through technology, >>so shale in it. And I mean, what he's just described is thin. This enormously changing landscape and financial service is disrupted by a lot of new entrance. A lot of financial text in tak, a lot of different kinds of technologies. A lot of industries are experiencing this rapid pace of change. How do u ex ensure in AWS work with Putnam amidst this tremendous change, and how do you sit down with the client and sort of work out? Where do we go from here? >>So you know, I want to touch upon a couple of things that made you said And Rebecca You said, So no one is the cloud of their journey. It's It's not a destination that you're trying to get to, And then the other thing that you talked about, it's change. So we had in the cycle right now. But there's a lot of change happening at an industry we had in the cycle Where you nothing, that $38 trillion or something, which is a generator, you know, they're just getting transferred from one generation to the other. I'm not getting any off it. Unfortunately, you know >>all of >>this change that is happening in the industry. What is really required is you need something up in terms of technology, a platform that allows you to move quickly on adapt really quickly to this change. And I think that's where cloud comes in when we talk about all the new generation technologies like data machine learning, artificial intelligence, how >>do you >>leverage all of those. How do you fail quickly? How do you test experiment? Run thousands of not millions of experiments and see what will work in what will not work and do that in a very cost effective way and cloud of a very easy. It's an effective way to do it. And the weight of Louis is helping our customers. Obviously. You know, we we announced a bunch of service is yes, today way have the widest and the deepest tack that is dead in the industry today. You know the strength of our partners. Accenture. So you know, Accenture has Bean one of our longest standing partners altar and financial firm on, you know, working with them, working with our partners to enable our customers. But then we're also investing very heavily in building our industry capabilities. Are accounting solution architects? Professional service is security professionals helping our customers answer all the questions that they would need to answer as they go in this journey with us. So it's, you know, we are in this with them for for the long haul on dhe, you know, super excited about parking trip. >>So from our perspective, I think where we view the world as at a point where we're post digital, where digital was to put a front end that made your engagement with the customers much better. But now we're talking about intelligent enterprise, which is to really digitize the company from the inside out. So not only you need cloud for agility and all the other benefits that cloud offers, but you also need to look at data is the vehicle that would actually not only transform the culture of the company but also be able to integrate with your partners. For example, Cement talked about, you know, getting mind share from the advisers. But if you can exchange data, integrate data much better, faster with them and serve data to them in shapes and speeds that they need, they'll be more amenable to put you on their roster as well. So I think we're seeing a change that's mostly driven by the fintech industry disruption. That's that's happening as well. And it is no better time than now with the cloud and data to really help transform companies like >>the's tons of innovation, right, it's We heard Andy Jassy talk about the Let's roll Sweet the Sweets that are available to us. Our job is to learn what they are and how does it apply to our business because at the end of the game you said it's about our shareholders. It's about the value that we can bring. But we want to harness the power off all of the innovation, and we can't even though we've Bean an innovator, we're not going to innovate alone, all right, so it's really helpful to have to surround yourself with partners who have done this before, to be learning from others and bringing in the right tools at the right time, so so we can turn things around quickly, right? This is way are obviously very conservative and risk averse when it comes to managing other people's money. So we have to be very, very careful. Having said that, you know, we want to learn about all the guardrails we can put in place so we can go faster. >>I want to actually do something about what Shayla brought up, and that is the cultural change within the organization, because change is hard and so many people are resistant, particularly when things are going relatively well and they say Why mess that up with the new technology? So how is hard? Maybe >>is the understatement of the week very hard, and as you guys know, you know where it's not. It's not hard because people don't just want changes. They are experts in things that they've been doing for the last 15 years. 20 years. They've bean at our firm for a really long time. They really know how everything works from front to back. What happens, though? Now, when we get a changing need from the market and people want to buy things differently and we want to sell different products and maybe wanna introduce new products to the market, we can create bottlenecks that slow things down if we're not careful. So this is where we want to learn about the two pizza teams and how you can do things faster. How can we apply that to our world? Which means business partners working with technology, co located in small teams, being completely empowered to deliver solutions, right, working with our risk and compliance people, making sure that everyone's doing things that there were supposed to be doing right? How do we put that to work in the financial service is industry. So where we're learning as we go, we're learning to break down the sidles in the organization, and it's hot all the way around because we're experts in our areas. We know what we've done really well. But fortunately we have a leader in our CEO who's basically said that Let's transform problem so that we become leaders in the digital era for financial service is so with his support waken. Get the executive team align, and as the executive team aligns, then you find that people in the organization they want to work in this model, right but way don't know yet what we don't know, right? It's so we know how to do things from yesterday. Now we're learning and working together. So you guys have come in and this is where we've said, Bring in the people who have done this before and let's hold a session with 40 50 people that Putnam and let's just learn about what that transformation looked like at other places, so we don't make the same mistakes. >>Well, that's what Andy Jassy said in his fireside chat this morning. He was talking about how he had surgery recently in the question you need to ask your surgeon is how many times have you done this surgery? Because that is the critical thing. And so having a trusted partner is so important. So how how does it work that we're working together, collaborating on this relationship? How are you ensuring that Putnam doesn't make mistakes and does do the right tool for the right job shell? >>So, um, earlier this year, we actually launched an offering. A devious lighthouse with eight of us and what it is is a is a collection off. All of our assets are thought, leadership and architectures that we have garnered over the years, having worked with plants like Putnam and have them through the journey. So we put them all together and we bring Bring that Fourth Putnam is one of the first clients actually take advantage of it Abuse Data Lighthouse and, for example, we have a methodology that is specially customized for doing data on on eight of us. So things like that is what we bring to the table to help eliminate the risk that they may encounter. >>And data is critical to us, right? It's we manage a set of data assets, and that's the engine off the organization. So when we look at cloud migration way, look at what's our data strategy? How are rebuilding the so called you guys introduce the terminology for confirmed data sets? And then can we gallon eyes the rest of the organization around it, from investment professionals to operational professionals who used that data every day. Manager governent Make sure that it is what it's supposed to be. And to do that in a cloud environment where their user experience becomes a lot simpler, a lot easier almost takes I t a little away from the day to day. We don't have to be in the report writing business because we can make them more self service right that will create efficiencies in our organization. Our clients are asking us to do things at a lower cost than ever before and introduce more products and more tools and more service is right, so >>I would just tie with Samantha, just said with your question about culture. So if you can make it easy for people, for example, making things self service and data that's discovered through a catalog, so you have a place where you can go and find all the data sets it available. What is the quality? What is the veracity of data and then be able to take a piece of that and try some experiments with it? I think that would enable the cultural change much faster >>because they are able to basically do their jobs better. >>Yes, yes, >>it is. A is a more productive implement. Will highly >>engaged employees, right? We don't want to be in a situation where we find a lot of those disengagement moving employees and the mission for company. We want high engagement. We own people committed to what they're doing. We want to remove hurdles, and technology is they can produce great efficiencies, but it's not done right. It can also be a big hurdle. So we want to learn how to deliver the right tools, the right products to make it easier for way like to say, bring delightful experiences for our clients and our employees. >>Delightful. Another were another Jeff Bezos favorite word of his Obviously Putnam is, is a real innovator and really on the vanguard of this new technology. What are you seeing in the greater financial service is landscape. I mean, how how what are the what is the corporate mind set when it comes to this kind of change? >>So you know, when we look across our financial service is customer base across banking, capital markets, insurance pretty much every customer today. The question is not, you know if we should move to the cloud or when should we move to the cloud? But I think every every CEO and see io is asking the question, How do I move too loud? And what applications do I move over? How do I start on this journey of transformation? Whether it's a digital or it's reducing costs are improving my risk. Posher whatever that end goal is on dhe, you know, when we look at use cases across the industry, risk and data is with one of the easiest use cases to get started with, say, on Ben Field. They were looking at Solvent E to calculations for 25 million other policy holders, and they reduce that time from 10 days to 10 minutes. That is a, you know, really good use case off getting moving to the cloud. You know, if Indra is a great example. They're very public customer analyzing 38 building over market records in the stock market and looking in on alive in all of the data. On it up with data and risk is one of the core use cases that companies start with but then >>has to >>get more as they learn more about the cloud. As they get more get a deeper understanding, they start looking at other things, like Transforming Corp core applications. Today we have core creating applications, scored insurance application score, banking applications that are running running on the cloud. And then they start looking and innovation. You know, how do we look at artificial intelligence? How do we look at machine learning? How do we look at the new technologies to really transform our business and one of the great use case? And we thought so. You know, a lot off insurance companies Liberty Mutual using Lexx as part of their there was a conversational agent for their customers. But one of the interesting examples I have is it's ah, it's a reinsurer in Denmark, Italy insurer in Denmark, and what they're doing is they're using image recognition from from Amazon to look at on accident in the field and then analyzing that, using the using our recognition service to see what that that actual damages and what the cost is and feeding that information to the underwriter really compressing the time that it takes two from a clean filing to processing and payment to a matter of a few few few hours on getting that payment to the to the customer. So really creating a very positive customer experience. >>So it speaking of customer experiences, what have you know? You said you thought you were in service to your shareholders. What have been some of the results that you've seen? >>So you have to look across the organization, right? So our advisers served the need on the retail side, so we were like a bee to be business, right? So we have to be cognizant of what's going on in their world. They're sitting down with clients and talking through the choices, and they have certain needs what they need to fulfill their obligations. They need to explain why they're doing what they're doing. If Putnam knows where each of the advisers are at in their journey with their clients, we can be more helpful to them in explaining why our funds are behaving the way they are right, that information can be had at the right time at the right moment when they need it. Need it, And that brings advisers closer to our our teams are retail distribution teams are marketing teams are investment teams are investment professionals, are using data and analytics to get information to. We're using technology to get information to them faster, so companies are doing releases. There's a ton of information out there these days. We're using technology to dig deeper into the press releases as well as the SEC filings, looking at the footnotes, really trying to understand what they're trying to say, what they said before and what are analysts should be focused on. And we can take a 70 page document, condense it to seven pages and pinpoint what the technology tools say's are really insights. And the analysts will take the time and read the whole thing. But they'll also look at the insides and they'll add it into their process. So technology's additive to the investment process and really making a change help and then that's helping Dr performance. So at the end of the day, we're living good performance on our funds through data analytics technology, you know, give you another example. Some off the were were very strong in the in the mortgage analytics business and on the fixed income side. Our team's very well known. They've been together for many, many years now. They're starting to use data at scale, and we found that being able to go to the cloud to do these analytics right in hours instead of days has really made a material difference in the number of iterations we can run. So now the questions are, when we do risk management, can we do that a little differently and run more reiterations and get more accuracy? So we're seeing all of that benefit. That's direct user experience, that people are seeing people seeing how technology is helping them do a better job with their thesis. >>Excellent. Thank you so much for coming on. The Cube seem ed knitting and shale. A pleasure having you on. >>Thank you for being here. >>I'm Rebecca night. Stay tuned for more of the cubes. Live coverage of the Ex Center Executive Summit coming up in just a little bit

>>live from Las Vegas. It's the Q covering AWS executive. Something brought to you by extension. >>Welcome back, everyone to the cubes. Live coverage of the ex Center Executive Summit here at AWS reinvent I'm your host, Rebecca Knight. I'm joined by Marum Best Aerobic. He is the managing director Global Cloud and Infrastructure Attic Center. Thank you so much for coming on the show again. We met last year. So you're a Cuba Lem. >>Yes, I am. >>So we're talking today about moving a $43 billion company to the Cloud X Century. This is X Center as its own as its own use cases. But Accenture has been engaged in a major move to the public Cloud moving a company of the size and heft of ex center. Must have been intimidating. How did you even sort of wrap your brain around the challenges? Walk? Walk us through this. >>So you know, the tough part about working at Accenture is you have 480,000 people that work for Accenture or at least 1/2 a 1,000,000 let's say, and those half a 1,000,000 people all think they can do the job better and differently than you do, right. So the first challenge is our own our own organization. But I would tell you I say that, you know, just in a joking way. They're very supportive. It was. We're telling our clients the cloud is the future. So when we told our organization we're going to the cloud, it was massive support. It was what's taking so long? Let's do this. And now, granted, this was over a little over four years ago when we started the journey. So the cloud providers in the world was very different. So today we run, you know, tens of thousands of workloads on Amazon. We run all kinds of the capability to do cloud native. We do platform service's. We consume so much cloud service that, in my opinion, we're never going back to a data center. Never. >>So what Ex center is really well known as a big advocate of the public cloud? First of all, why? Why the public club? Well, the public cloud is >>the future. I really think when you think about how especially somebody like Amazon, if you listen to Andy Jassy this morning, right, it's they are innovating at a scale and a pace that that's just truly exceptional, and it gives us opportunity to take those things and implement them to change the way we run our business. So the weak and implement a lot of these capabilities toe help enable our business and then through that, by enabling our business be a credential for not only ourselves but to our clients to say, Hey, we do this to ourselves and way can help you do it as well. >>We're walking the walk >>or totally walking the walk and we push very hard on that angle because for us, it's very important for me personally to say, you know, I started my career client service. So I know serving our clients is one of the key things for us in our business. So I want to be able to solve these things, these air hard things itself so we can solve them faster for our clients ourselves. It makes it easier for them on their journey, >>and you also understand the pain points and the challenges A CZ you said your employees, your workforce was very supportive of it, but that's not always the case. >>No, it's not. It's not in But I'll tell you, our own teams in the early days they struggled with this. To be honest, right? It was a It was a change because we were heavily, heavily virtualized. We were great at running our infrastructure. We were doing all those things. Those are the things you did back then. So then when we said the team's Hey, we're going to the cloud They said, Well, we're not so sure. Do we really think we're going to save money? And in the early days we said We're doing this because this is the right thing to do But in the end, we actually did save a lot of money going to the cloud because we learn toe work differently and I think that's one of the key messages I would convey back is you are not going to work in the cloud the same way you work in a data center. You are going to shut things off. When you don't use them, you're going to have an opportunity to optimize them. You will have an opportunity to spend new capabilities up sooner, used them for what you need and faster and then you know things you can't do in a data center. You can't spend up. You can't use Dynamo. You can't use lambda. You can't. You can't use these. Micro service is in the data center, but in a cloud you can. So now you leave yourself in a situation where you have so much capability you can turn on to enable In enterprise is just mind boggling and exciting and exciting. >>So the time table t make this transformation was ambitious, to say the least. How aggressive did you need to beating? This is a journey. You said you started a little over four years ago. >>Yeah, it took the entire program for us. Took us about three years. But the real aggressive part of the journey was we said, you know, we can't We're dabbling a little bit in it. So let's just say our starting point was around 9%. You know, one of the big things we said is, how do we get the 50% in one year? And it was like, Okay, how do we do that? So we put a program in place and we got the team organized, and we did, you know, kind of like what Andy Jesse was talking about today at the keynote. We set some top down goals. We said to the teams were going to do this. This is the future. We're not kidding. We're going to do it. We have full support and we work with the business. And we explain what it was what was going to be. And you know what? One of the first things we took the public cloud, like three months into this program, was accenture dot com. I mean, we literally three months into the program, took our market facing capability of what our clients look at. People look at to think about us. They moved into the public cloud. >>We've described as a very disciplined approach and also one that was led from the top brass. So how talk a little bit about how the transformation started? >>Yes. So the transformation was really I will tell you, in the early days it was a function of we're going to start to take thes workloads and move them to the cloud. How do you do that? We made a decision to say, Let's take this. Let's take it a data center approach perspective. We're going to shut down an actual data center one at a time. And that's how we do migrations now. A lot of clients think about it from a different perspective. From our point of view, it made the most sense of Shut down the data center and get out of that location because then you're not maintaining all these things twice the fastest you can do it. The better way to do it is to do that. So that's kind of how we approach that. We said all the workloads in the data center go now. We took on our North American workloads first because we didn't make it easy for ourselves, right, because that's where all of our production work clothes where it wasn't just the test environments. It wasn't just a, you know, development environment. It was the real deal, everything it takes to run and support Accenture And we said we're gonna move those first. And so from a transformation perspective, that was our key. And then the other one is we had this. We had this notion of cloud first and cloud only. So any new capability also, we said here on out the minute we started the program. We said no more data center. We are anything you need now is going to be provisioned in the cloud. >>And what about digitally native applications? Yes. So when you think >>about like, um, a clown native capability. So now you start to get into another. You're into cloud, You go. Oh, man, what else can I do? And then So our previous CEO announced to the world extension was no wonder going to do performance reviews. And we're like, Okay, this is great. What we gonna >>do >>about this? And we need it implemented in three or four months. So when our HR business team came to work with us, one of the things we said is, Hey, this >>is the >>time because at that point we were about six or seven months into the program of Cloud. We said, Well, you can't spend up of'em. You're gonna go into the cloud. So we built a capability to does performance achievement for 405 100,000 people globally that runs it with Lambda and Dynamo. And it's been there for a little over now, four years, believe it or not. >>Amazing. So we talk about other challenges that you face because I mean, the way you're describing it, It sounds as though it people were supportive and you had a lot of winds along the way. But of course, there there were. I'm sure there were some dark days to weigh, had some >>growing pains. I think you know, when you think about it a lot of times because a lot of work loads we did pick up. We did a lot of lifting shift. Um, and I hate that term because what we learned as we went is we could actually lift, configure and run for less. So I don't know if there's an industry term for I haven't coined one yet. If somebody here is one that they want to share with us, I'd love to hear it. But lift and shift itself is a bad. It's a misnomer because that's not how you do this right. You have to touch a little bit of something. But what happened is in the early days we weren't quite sure how to size these environments, so when we would pick them up and we would say, Well, let's let's let's kind of give it some more capability. Let's let's throw some more CPU at it. But what we learned very quickly was that costs a lot of money. And we started applying some tools that would love, help us see what the utilization needed to be. And then we learned very quickly that Oh, you know what this environment that used to exist in the data center? Well, that's >>kind of >>on a couple of generations ago. CPU a couple of generations ago, memory a couple of generations ago storage because all the stuff in the cloud is all newer, all new or CPU on your memory. So then very quickly it's not even a like for like it's a like for less. So we figured out very quickly that we can actually take a workload. Let's say they had eight CPU use and we can run in the cloud with two. And so, But it was. It was. It was growing pains through that process that we learned to say, How do we do it then? Frankly, I think a lot of times we talked about this with our clients who is how do you get the team along the way? Because it's it's and When we set the edict, the team realized they had to go do this stuff. But, you know, we thought we'd have a little bit of resistance. What we found instead was a team very eager to learn and very eager to be part of this program and part of this capability. Because they see it. They saw that it was this new stuff that we were doing. So a little bit of the early growing pains around who's gonna work on what? How do we How do we focus our training? You know, how do we get these teams to help us really drive some of this capability and as we started, enabled them or that helped us get momentum. And I think the other one is just when you start to get all these workloads and how do you actually manage this stuff? How do you manage this capability? And for us? You know, we spent a lot of time with our eccentric cloud platform friends because we needed a capability to said, How do I actually manage all this building? How do I discover all the capabilities that are out there? How do I track my compliance How do I make sure all these things are aligned to my security? Construct that in, You know, info SEC is asking us to drive. So we need to do all do all those things that we didn't have it perfect in the beginning and we learned along the way. >>So talk about some of the other benefits you've described cutting some costs. And you've also described this new mindset that so many of your employees have adopted a rials learning minds, a growth mindset, one of embracing innovation. What are some other of the benefits that you've seen? >>You know, the benefits that are to me today is just this art of the possible is just mind bogglingly so much more open to whatever you want to do. It's almost scary how much is out there. You actually have to kind of pull back a little bit and say, How do I apply some guardrails around us? And I think when I think about the other benefits are we have more capability now than ever to spin workloads up. I'll give an example, like on Amazon spot instances are one of the things that they offer. We spend up 700,000 spot instances a year to do work along the way. And it's unfathomable to even think about doing some of those things in the data center. So the flexibility that you get if you want to test the release sometimes some of these big systems you might have to bring in hardware to test that in the data center. But in the cloud I >>don't have >>to buy hardware. I could just spend up more excuse. So it's just the benefits of flexibility, the agility, the speed that not waiting on and also, I think, the other one that I think sometimes gets overlooked as Excuse me. Sometimes that gets overlooked as I don't have a capacity management team that's worried about the capacity in the data center. I don't have AH team managing the vendor. Providing the data center service is right. It's all these things. You start to turn off that you didn't know that you don't need in a cloud anymore because they're managing those things. So even even if you're some, I think some clients get lost and waiting too long to do this. But there's all these other costs around there that you're spending money on anyway, you may not realize is you think about this business case, so I think the benefits are just tremendously there. But you really have to look at it holistically. >>So this morning, on the main stage we heard Andy Jassy describes a dizzying number of new products and service is that eight of the U. S. Is coming out with How how are you thinking about those and integrating them into what you're doing at Accenture with this initiative? And what's the energy that you're taking away from? I mean, he's certainly a very dynamic leader. >>Well, the energy the energy is great at this event. Every single year, the amount of innovation that comes out, it's fantastic. I think one of the great things that came out today is this concept of we're gonna take the hyper visor. We're actually gonna move it into a chip set to help you give you more processing power on the computer. I think on the server is huge. That's a huge capability. Lets us think about how do we manage things differently? I think some of this, uh, you know, uh, capabilities run enterprise, search enterprise, search is very hard, very difficult, right? This ml capability that, you know, it's very appealing. What am I gonna do with that? How do I help my organization think about search differently? That's very appealing. And I think the other one that's you know, there are a lot of other ones around the ML and the Data Lake stuff and everything else, but I think some of these things that get overlooked sometimes the pure review with ML was awesome, right? It's like, How do I help? How do I help them? Has the machine helped me do a code peer review with my people? So those were just, you know, real quick things that come to mind. But it's just great to see all this innovation, and it becomes available so quickly, right? So you've got you have an opportunity to get into these things very fast. >>So as you look back on this journey, this transformation, what are you most proud of? And what are you most excited about in the future? I'm most >>proud of the bold bets. Not only that, we all individually took, but the team's I'm so proud of our team in taking the journey onto trusting us, tow working and pushing and learning themselves to really take this on and it's it's it's just this magical. It's like it's a compound ing thing that just infested everybody else writes. Everybody's been excited about the cloud and how do we do it? How do we do this stuff? I think you know. And then from a future perspective, I'm really interested in MAWR in As the capabilities evolve and they get announced, I think the benefit we have is as we're there. It's easy for us to see some of these things. I think the container landscape is going to be huge. All the kubernetes stack and everything else that's that's out there. We need to think about. How does that help me continue to evolve? The service's I provide either more custom cost, effectively arm or efficiently back to the business and turn on more capability faster and try stuff faster and turn it off faster. And that's the great part of the cloud, right? You get the try stuff, you get to play >>with it, >>and if you don't like it, you turn it off. You don't have to wait three years for this equipment toe. Appreciate you move on with life. And that, to me, is exciting because there's just so much innovation that's coming. There's so much opportunity for us to really just jump out there and, uh, have fun. >>Excellent old Merrin. Best aerobic. Thank you so much for coming on. The cubic pleasure talking to you too. I'm Rebecca. Night. Stay tuned for more of the cubes. Coverage of the ex center Executive Summit coming up tomorrow. We'll see you here right now. Early.

>>live from Las Vegas. It's the two covering AWS executive Something >>brought to you by Accenture >>everyone to the ex Center Executive Summit here in AWS. Reinvent I'm your host, Rebecca Knight. I'm joined by John. Match it. He is the managing director. Applied Intelligence, North America Attic Center Thank you so much for coming on the Q. So we're gonna have a fun conversation about a I today. We tend to think of a I as this futuristic Star Trek Jetsons kind of thing. But in fact, a i a. I is happening here and now >>it's all around us. I think it's intricate zoologist, sort of blood into the fabric girl of our lives without really even knowing about, I mean, just to get here, Let me lives took a new burst. There's a I in the route navigation. We may have listened to Spotify, and there's a I and the recommendation engine. And if you want to check the weather with Alexa, there's a lot of agents in the natural language processing, and none of that was really impossible 10 years ago. So without even trying, just wake up and I sort of like in your system in your blood. >>So as consumers, we deal with a I every day. But it's all but businesses are also using a I, and it's already having an impact. >>I think >>what is absolutely true it and really interesting is that information is just the new basis of competition. Like like you know, companies used to compete with physical objects and look better cars and blenders and stereos and, you know, thermometers. But today, you know, they're all like on a device, and so information is how they compete. And what's interesting to me about that for our clients is that if you have a good idea, you can probably do it. And so you're limited, really by your own imagination on. So I just as an example of like how things are playing out a lover classroom, the farmer space to make better drugs, and every every form of company I know of is using some sort of machine learning a I to create better pharmaceuticals, the big ones, but also the new entrance. One of the companies that we followed numerator really issued company. What they've been able to do is like in just just a massive amount of data like all day, like good data, bad bias on buying >>its ingesting, this kind of data the data is about. >>It's about like drug efficacy, human health, the human genome like like like doctors visits like all this diverse information. And historically, if you put all that data together just to have a way to actually examine it, there's no way that was too much. Humans can't deal with it, but but But machine learning can. And so what? We just all this date up and we let the robots decided sort of less meaningful. And what's happened is you can now deal with instead, just a very fraction that data, but all of it. And the result, like in pharmaceuticals. Is it wearable? Come with new HIV drugs in six months? It used to be years and millions of dollars, tens of millions of dollars. But now it's, you know, it's months, and so it's really changing the way humans live. And certainly the associated industries. They're producing the drugs. >>So it's as you said, I was already being used to reimagine medicine. So many of the high tech jobs openings today are not necessarily in technology there in pharmaceuticals and automotive's. And these and these involved artificial intelligence, their skills in artificial intelligence. What can you tell us about how a eyes having an impact? And that's what I think. >>This is a really good question. What is interesting is that industry she wouldn't think, or digital companies are now actually digital competitors. I'll give you two examples. One is a lot of clients make liquefied natural gas. Now that that is a mucky business. It's full of science, like geology and chemistry and chemical engineering, and they work with these like small refineries. But the questions like, how we gonna get better if you make you know Ellen G. And so what they do is they use a I, and the way they do that is likely have these small refineries. Each piece of equipment has a sensor on it, so there may be 5000 sensors, and each sensor has three or four like bots looking at it, and one might be looking at vibration heat and and what they're doing is they're making predictions. Millions of predictions every every day about you know whether quality is good. The machine's about to have a problem that safety is jeopardise something like that. And so So you've gone from a place where, you know, the best competitors were chemists to the best competitors are actually using machine learning to make the plants work better. You know, another entry. We see this really was brewing. You know, you don't think no one would think brewing is like a digital business like his beer? The Egyptians may be right, like so everyone knows how to do it. So But think about if you make beer like how you're gonna get better and again do what you do is you begin to touch customers more effectively with better digital marketing, you know? Hey, I tow target to understand who your best customers are, how to make offers to them, had a price head of both new product introduction, and even had a formulate new brands of beer that might appeal to different segments of society. So brewing, like they're all about, like ml in the eye. And they really are, like a digital competitive these days, which I think it's interesting, like no one would have thought about that, you know, is they were consuming beer on a Friday with their friends >>and craft brewing is so hot right now. I mean, it is one of those things. As you said, it is attracting new, different kinds of segments of customers. >>Right? And so the questions like if you are a craft brewer like, how do you go find the people that that you want? So what we're doing is we're way have new digital ways to go touch them very personalized offer like, if you like running, you know we can We can give you an offer like fun run followed by a brew. But we know who you are and what you like your friends like to do to get very specific A CZ we like examined the segments of society to do very personal marketing. It's actually fun, like, you know, it gives you things to go Dio we did one event where he looked at cos we we had a a beer tasting with barbecue teach you no instruction. So if you wanna learn how to cook barbecue and also do a beer tasting can get 20 people together and you have a social experience and you you buy more the product. But what's interesting is like, Well, how do you find those people? How do you reach them? How do you identify these of the right folks? That'll actually participate? And that's where a I comes into play. >>So this is fascinating, and you just you just described a number of different industries and companies beer, brewers, liquefied natural gas, pharmaceuticals that are using a I to transform themselves. What is your What do you recommend for the people out there watching and say, I want to do that? How could I get on >>board or what we advise Companies are clients to really get good at three things, and the first is just to do things differently. So you got to go into your core operations and figure out how you can extract more cash and more profit from your existing operations. And so that's like we talked about natural gas, right? Like you could produce it more profitably and effectively, but that's not enough. The next thing you do step to would be to actually grow your core business. Everyone wants to leave to the new right away, but but you're getting all your cash and your legacy businesses and so like like we saw in the brewing history. If you can find new customers, more profitable customers interact with them, create a better digital experience with them, then you'll grow both your top line in your bottom line. But for our from our perspective, the reason you do both of those things is cash. Then make investments into New Net new businesses on DSO. The last thing you do is to do different things, so find in adjacency and grow. And it's important to talk about the role of a I and that because that's the way you develop outcomes with speed, right? Like you're not gonna build a factory and we're gonna build a service or some sort of, you know, information centric offerings. And so what we like to do is talk about like the wise pivot from your old legacy businesses. We generate cash and you make selective investments in the new and how you regulate that is a really important question, because you're too fast and you start the Lexie businesses like to slow, and you're gonna be sort of left out of the new economy. So doing those three things correctly with the right sort of managing processes is what we advise our clients to focus on. >>So I see all of this from the business side. But do you because you're also a consumer? Do you ever see any sort of concerns about privacy and security in the sense of why does anyone need to know if I like to run or I like barbecue with my beer? I mean, how do you How do you sort of think about those things and and talk to clients about those issues >>too? Well, I think, you know, actually, for censure. Ah, large part of our focus is what we call just ethical a eye on. And so it's important to us to actually have offerings that we think that we're comfortable with that are legally comfortable, but also just societally are acceptable. And it's actually like there's a lot of focus in this area, right, how you do it. And there's actually a lot to learn. Like like what we see, for example, is there could be biased in the data which effects the actual algorithm. So a lot of times were the folks in the algorithm, you need to go back to the data and look at that. But it's something we spend a lot of time on. Its important us because we to our consumers and we care about our privacy. >>So when you talk about the wise pivot and the regulation, this is a This is a big question. There's a lot of bills on the table in Washington. It's certainly dominating our national conversation, how we think about regulating thes new emerging technologies that that present a lot of opportunities, but also a lot of risks. So how how are you, how you are you a tech center thinking about regulation and working with regulators on these issues >>way get involved with talking to the government. They seek independent counsel, so we participate when they're seeking guidance and we'll give our offer. So we're a voice at the table. But you know, what I would say is there's a lot of discussion about privacy and ask. But if you look at, like, at a national level, particularly government, I think there used to be more focused just on the parts that are incontrovertibly not problematic with privacy. So I gave you the example of working with liquefied natural gas. Okay, we need better, eh? I'd run our factories better. There's a lot of a I that goes into those kind of problems or supply chain planning. Like, how do I predict demand more effectively, or where should I put my plants? And A. I is the new way supply chain is done right? And so there's There's very few of the consumer centric problems I think, actually is. A society like 90% of the use cases are gonna be in areas where they don't actually influence for privacy and a lot of art. Our time is actually working on those kind of use cases just to make you know the operations of our organization's Maur more effective than more efficient. >>So we talked about the very beginning of this conversation about the companies that are disrupting old industries. Using a lot of these technologies, I mean, is this is a I A case where you need to be using this you need to be using >>you need to be using it. My view, my personal view is that there is going to be no basis of competition in the future, except for a digital. It just is going to be the case. And so all of our clients, you know, they're at some state of maturity and they're all asking the question like, How did I grow up? I don't get more profitable. Like certainly the street. Once more results on DSO if you want to move quickly in the new space, is you. You you you only have 11 choice. Really? And that that is to get really, really, really good at managing in harnessing digital technologies, inclusive of >>a I >>two to compete in a different way. And so I mean, we're seeing really interesting examples were like, you know, like, retailers are getting into health care, right? Like, you see this like you go into Wal Mart and they have our Walgreens. They have, like a doc in the box, right? So we're seeing. But lots of companies that are making physical things that then turn around and use the developing service and what they used to use their know how they take everything they know about, like like something you know about, like healthcare or how to like, you know, offer service is to customers and retail setting, but then they need to do something different. And now how do I get the data and the know how to then offer, like a new differentiated health service? And so to do that, you know, you have a lot. You have a lot of understanding about your customers, but you need to get all the data sources in place. You may need certain help desk. You know you need ways to aggregate it on, and so you probably need a new partnerships that don't have. You probably need toe manage skill sets that you don't have. You may need to get involved with open source communities. You may need to be involved with universities that where they do research, so you'll need a different kind of partnerships to move a speed then companies have probably used in the past. But when they put all those those eco systems together, onda new emphasis on the required skill sets, they can take their legacy knowledge that's probably physically oriented and then create a service that can create. They can monetize their experience with the new service. What what we find usually doesn't work is just a monetized data. If you have a lot of data, it's not usually worth that much. But if you take the data and you create a new service that people care about, then you can monetize your legacy information that that that's what a lot of our class they're trying to do, think they've very mature and now, like Where do you go? And where they go is something may be nearby to their existing business, but it's not. It's not the same legacy business of the path for years. >>I want to take a little deeper on something you brought up about the skills, and there's a real skills gap in Silicon Valley and in companies in this area. How are you working with companies to make sure that they are attracting the right talent pool and retaining those workers once they have? Um, >>well, so this is, I think, one of the most important questions because, like what? What happened with technology in the past? We would put in these like ear piece systems, and that was a big part of our business, like 15 years ago. And once you learned one of those things, that's a P or oracle or, you know, like whatever your skill set was good for 10 years, You probably you were good. You could just, like, go to the work. But today it just just go down to like the convention center. Look at this vast array of like like >>humanity, humanity >>and new technologies. I mean, half these companies didn't even exist, like, five years ago, right? And so you're still set today is probably only good for a year. So I think the first thing you've got to realise is that there's got to be a new focus on actually cultivating talent as a strategy. It's it's the way to compete like people is your product, if you wanna look at that way. But we're doing actually starting very, uh, where we can very early in the process, like much beyond a corporation. So we work with charter schools over kids, we get them into college, we work with universities, we do a lot of internship. So we're trying to start, like, really early on when you ask a question like, what would our recommendation to the government be were actually advising, like, get kids involved in I t. Like earlier and so so we can get that problem resolved but otherwise, once companies work. I think you know you need your own talent strategy. But part of that might be again, like an eco system play like maybe you don't want all of those people and you'd rather sort of borrow on. And so I think, I think figuring out what your eco system is because I think I think in the future like competition will be like my eco system versus your eco system. And that's that is the way I think it's gonna work. And so thinking in an eco system way is, is what most of our clients need to do. >>Well, it's like you said about the old ways of it was a good idea for a good product versus good ideas. And I just keep looking. Thank you so much, John, for coming on the Cuba Really fascinating conversation >>was my pleasure. Thank you so much. >>I'm Rebecca Knight. Stay tuned for more of the cubes. Live coverage of the Accenture Executive Summit coming up in just a little bit

>>live from Las Vegas. It's the Q covering AWS executive. Something brought to you by extension. >>Welcome back, everyone to the cubes. Live coverage of the ex Censure Executive Summit here in AWS. Reinvent I'm your host, Rebecca Knight. We have three guests for this segment. We have Fang Deng. She is the big data and an Advanced Analytics program. Lead analytic Seo hee at Novartis. Thank you so much for coming on the show. Thank you. We have low eq zero. He is Novartis head of Analytic Seo Hee. Thanks so much. Look, and Vika sinned. Wan Hee hee is applied intelligence delivery lead at Accenture. Thank you so much. Thank you. So I want to start with you. Look, no. Novartis, of course, is a household name. It's one of the largest pharmaceutical companies in the world. But that left you to just walk our viewers a little bit through your business and sort of the pain points you were looking to solve with this journey Thio to the cloud >>you think you ever care? So I think if I if we look at the company, I think Wayne realized that it is more and more difficult to bring new trucks to market, so it takes about 12 years and on $1.2 billion to find a new trick. So at the same time, we see that there's more and more patient that need access to medicines. So in the last two years, I think we tried toe clear the new strategy where we're trying to re imagine medicine for user's data and technology. So in 2018 we've recruited a new studio that's came and I tried to build a digital ambition which is around fabulous, which is the innovation, the operation and the engagement on the innovation. What we're trying to do is to find new compound, will application off existing compounds into our business, make sure that I think patients can get access to drugs much faster and earlier on in the operation. We are trying to optimize the backbone off day to day processes, beat in the manufacturing or in the supply chain, or in the commercialization to ensure that the patient also get access to that much faster in the engagement. We're trying to healthy a cheapie and the players and then the and the patients to better understand the tracks reproduce as well as on the medication they need to have to receive treatment. So if you look at these three pillars, the cloud strategy is an essential portion of it. Because in all of its processes we have a lot of data and full cloud. I think we can make use off his data to help to innovate, open, right and engage. >>So as you as you said, it's really about reimagining medicine. I mean, from the drug discovery process to how it's helping patients live, live longer, healthier lives. Thanks. So talk about the vision for the Formula One platform. >>Yeah, aside, like a mission before we trying to re imagine our products for the patient. And we're trying to use more the more data history data and also the public data try to support our products. And the Formula One is our future enterprise data and the next perform for our new artists. So our objective is trying to love you all the new technology and also trying to consolidate over data in our Macleod and build up this platform for the whole notice Users support our business, do better products full patient. >>So when it comes to these these new new platforms, new technologies that are being introduced. We know that oftentimes the technology is the easy part. Or at least the more straightforward part I should say. But it's it's sort of getting people on board the change management. What are some of the challenges that you that you know of artists faced in terms of of the culture and the skills for your for your workforce? >>So if you look at that, the are in disgrace, very traditionally nature. And when we embarking the details confirmation, I think the first thing we had to change the culture of the company. So when you when you listen to our CEO, I think you tried to promote this invoice culture where all of us are Syrian leaders. And then we walk, you know, as a thing as an organization where we try to help each other and more and more collaborate when it comes to digital transformation. When we started this having this period, we've realised actually that workforce was not trained, so the first few things that we did disease is a tight wire new workforce, but also try to actually identify the advocate ambassadors. I could go and then go into residual confirmation early on to be able to help and to guide the office to get for that. So it's actually it's totally immaterial, Johnny. And then we are now in the second year and we've seen already a tremendous four guys, right? >>Can you describe some of the changes that you've seen him? I mean, I'm really interested in what you talk about. The ambassador's, the people who are going to spread the good word. What are what are some of the changes that you've seen in your workforce? Yeah, we can mention >>that. It's like you mentioned before. Um, like, talking about regarding overall catch a bus back to tried to leverage a new attack. Knowledge like the delivery perspective. We trying to do more automation, and the May 1 side is trying to get more efficiency and also another side. Try to ensure the intern responsibility for one product to be produced and also at the same time, let me through more automation to think about this secret inside the compound inside. Help us a lot of in pulling that part also, because >>maybe I can compliment that so I think if you look at it when the initial studying part of our journey, I think that a lot of people were reluctant to go and then tie to work on a cloud and to work with digital technology. So we found few projects where we felt there's a good ready for money. And as we can deliver fast in fact, Andi to things like, I don't get reviewed t piece every. Make sure that when we went, our field falls, go then and talk to the hippies. They know what to talk about an orphan, and then which format. We also look at that we can reduce costs internally and for the food, different projects and then on product that we've established, we build credibility within the organization that helped to disseminate the cultural transformation. >>So once others air seeing, seeing the benefits that that captured, they're more likely to to feel good about the cloud work. >>Yeah, that's that's the true and also notes of the news. Things like our teams, they are interesting about that. You see more and more people talking about our driveway and also talk about the UAV's and how can we improve the did he re efficiency and the same time is come back to say that teams think about how to make themselves to be a product owner and the product the way of the great. Let's the glistening for the whole team >>because I want to bring you in here a little bit. So talk to me about how ex Center is helping Novartis, particularly in in this eight of us. Caught initiative. >>Six incher is a leader in business and technical i t transformation programmes. So what we're bringing on the table is in the expertise with not only the technology and the AWS elements, but also the business and technical transformation expertise that have we have over the years in the firm. On additionally, I think you know, it's not only about technology change. As you mentioned, it's all a lot of change and operating model and and also kind of working with a very blended team. Across that expertise and experience is what you bring to the table >>a blended team, culturally, regionally, actually, all of it >>one of that belief. I mean, just to give an example. We are working across steams in roughly about six geography ese from various cultures. Where's countries? And it's it's, ah, various time zones, which makes it quite challenging to make it all work together. So you started the journey. I hope you succeed in it. And, uh, you know, it's working well, so far, >>so Cloud is is really a megatrend right now. What are the differences that you're seeing across Regions, countries, industries? >>So I think it's this many answers many parts of the answer to the question. So I think if I talk about, um, industries So you know, initially when clouds started, we had seen a major up take off the cloud technology and the company that manufactured the clown technology and telecommunications, and you know where the older infrastructure and technology aspects were, Whereas companies like health care and media and metals and mining, We're kind of behind the curve in adoption rates because off their respective, you know, concerns around compliance and security of data. But I think that trends is slowly shifting. US. Companies are becoming more open. I think I've seen how the public cloud has matured. The security models, you know, are speaking for themselves. People can understand the benefits from moving to the cloud in terms off, you know, cost rationalization from producing maintenance costs, focusing their proteins on things that they were not able to divert their attention on. >>The fact we had, I think I will say for me and then where I've seen a Novartis if it is access to innovation. So I think loud offering brings a lot off innovation at happy face. That's one hand and also access to extend our collaboration. So when you're in, you know, inside focus I think the relatives from over there wants to walk and collaborate with you. But when you work on the cloud, everybody goes on the cloud. So that's really a stream manifested ate a collaboration with Nextel Partners. >>So how is that changing the culture of Novartis itself? In terms of there, there are more opportunities to collaborate. And it also is maybe changing the kinds of workers you attract because it is is people who want to be doing that in their day to day. >>Well, if you look at it, um, in the past, I think we used to have our own workforce, and then we tried to do a lot of things with our own workers, but I think he's in the on Monte. Workers are full of us, so we have more and more partnerships being announced, and this publishing, I mean used actually to help the company to in revenge himself. So that's actually on one hand on the other side. As you said, I think that to attract with talents I think you need. You also need to have a different future. But you need also to be able to give them the flexibility to work and do the things they like, and we're in a context and a framework. >>One of the things that we hear about so much at the's technology conference is this buzzword of digital transformation and of artisans obviously embarking on its own digital transformation as well as his journey to the cloud. There happen. They're powering each other, they're accelerating each other. How would you describe what is happening to the industry and to know Vargas with it within this, the pharmaceutical industry? >>Yeah, I think, based on our knowledge, to send the why this may be the first. The company can't be trying to build this kind of enterprise level data and also an Alex platform, and based on that, we will be able to counseling date off the history potato intended date on public date, huh? And the Human Industry Day. Then they tried to help us to produce the better products for the patient the same time it gave also the team a chance as you mentioned before, and the look at former more opportunities and the China to leverage in your technology particles of Kayla. >>It's also changed the way that we work every day. So if you look at it now, um, we won't be virtual assistant. We I think we use machine learning elements politics to be able to talkto you are a cheap piece. We actually monitor clickers, Kyle real time having using common centers. So every single day, I think the use off, digital at work and atom in the physical man thinks. And I think we have seen that the adoptions has increased since we have I ever to launch successful products. And I think >>one of the things which, which I really like about working in the bodies, is also I think there's there's an ambition to drive business value quickly. So you know you take a very agile use case, best approach on things rather than having to wait for very long years of time. Plus, the company kind of encourages a culture which is based on mutual cooperation and sharing knowledge, which is great >>because Novartis is really on the vanguard of companies in terms of how much it's embraced, the cloud and how much it's using it. What do you think? Other companies, pharmaceutical companies, but maybe even in other industries as well could learn from the nerve artists example. >>I think one thing people really shy about is, you know, when they moved to the cloud is the security aspect. I think what people probably had failed to realize in the past that there's been so much developments on security in the public cloud, which has bean key focus areas, something nobody's has taken the challenge and has understood that very well. And I think companies can learn from all the different aspects of security that you know were built into our entire transformation work, starting from ingesting data, the user management to access and all of that thing, so that's kind of one thing. Similarly, compliance related aspects as well, you know, So we've g x p compliance is at the core off how we're building our solution. So I think on dhe, if you understand how we built the rules around compliance. But in architecture, I think couples can learn from that a swell and build that is integral part off your not only technology solution, but the process that goes along with it. >>We started our conversation talking about Novartis and its quest to reimagine medicine. How How do you think that your industry is gonna look 5 10 years from now? I mean, the drug discovery process is slow on purpose. I mean, we need to think of patient health and safety for most. But how do you think it really could change the course of how we treat people? >>If if you look at it is more and more treatment required that actually I used and required data as a service or are being actually process for data. So when I am, when we look at the things the way that the industry is changing, I think the times to develop drugs, yes, takes longer. But I think for your use off the data that you have. I think you can try to reduce I cycle. So one of the objective is to reduce the cycle by one firm. Between that, we could bring the day. Is a new director market in eight years, rescues 12 years Today. The other thing is that way for user's data. You can monitor them patient, and you can recommend it the treatment of 80% off foundation. They don't go in and finish her treatment. So I think if we can show the audience to treatment, then there's a lower risk off the admissions to the season and sickness that they have. >>So it's not even not not just Novartis seeing the value of the date. It's the patients themselves, efficiency >>and the d. A r C as well, right? Because I think if you're if the situation is not six and I think the insurance doesn't have to pay. So I think all the value chances is being comes from >>well, sang Loic, because thank you so much for coming on the Cube. It was a really fascinating segment. Thank you. I'm Rebecca night. Stay tuned for more of the cubes. Live coverage of the Ex Center Executive Summit coming up in just a little bit