>>And welcome back to the cubes coverage of AWS executive summit at re-invent 2021. I'm John ferry hosts of the cube. This segment is about surviving and thriving and with the digital revolution that's happening, the digital transformation that's turning into and changing businesses. We've got two great guests here with guardian life. Nick Volpi CIO of individual markets at guardian life and Kim golly CTO of life. And is at Accenture essentially, obviously doing a lot of cutting-edge work, guardian changing the game. Nick, thanks for coming on, Kevin. Thanks for coming on. >>Thanks John. Good to be here. >>So I wonder before I get into the question, I want to just set the table a little bit. The pandemic has given everyone a mandate, the good projects are exposed. The bad projects are exposed. Everyone can kind of see kind of what's happening because of the pandemic forced everyone to kind of identify what's working. What's not working what the double-down on innovation for customers is a big focus, but now with the pandemic kind of relieving and coming out of it, the world's changed. This is an opportunity for businesses, Nick, this is something that you guys are focused on. Can you take us through what guardian lives doing kind of in this post pandemic changeover as cloud goes next level? >>Yeah. Thanks John. So, you know, the immediate need in the pandemic situation was about the new business capability. So those familiar with insurance traditionally, you know, life insurance, underwriting, disability underwriting is very in-person fluids labs, uh, attending physician statements. And when March of 2020 broke that all came to an abrupt halt, right doctor's office were either closed. Testing centers were either closed or inundated with COVID testing. So we had to come up with some creative ways to digitize our new business, um, adopt the application and adopt our new medical questionnaires and also get creative on some of our underwriting standards that put us at, you know, certain limits and certain levels and how we, when we needed fluids. So we, we, we have pretty quickly, we're agile about decisions there. And we moved from about, uh, you know, 40 to 50% adoption rate of our electronic applications to, you know, north of 98% across the board. >>Um, in addition, we kind of saw some opportunities for products and more capabilities beyond new business. So after we weathered the storm, we started taking a step back. And like you said, look at what we were doing. Like kind of have a start, stop, continue conversation internally to say, you know, this digitation digitization is a new norm. How do we meet it from every angle, not just a new business, right? And that's where we started to look at our policy administration systems, moving more to the cloud and leveraging the cloud to its fullest extent versus just a lift and shift. >>Kim, I want to get your perspective at a century I'm, I've done a lot of interviews with the past, I think 18 months, lots of use cases with a central, almost in every vertical where you guys are almost like the firefighters get called in to like help out cause the cloud actually now isn't an enabler. Um, how do you see the impact of the, of the pandemic around reverbing through? I mean, obviously you guys come to the table, you guys bring in, I mean, what's your perspective on this? >>So, yeah, it's really interesting. I think the most interesting fact >>Is, you know, we talk about Nick raised the, you know, such a strong area in our business of underwriting and how can we expedite that? There's been talking on the table for a number of years. Um, but the industry has been very slow or reluctant to embrace. And the pandemic became a very informed, I became an enforcer in it to be honest. And a lot of the companies were thinking about a prior. Um, but that's, it they'll think about it. I mean, even essentially we, we launched a huge three-year investment to get clients into cloud and digital transformation, but the pandemic just expedited everything. Now the upside is clients that were in a well-advanced stage of planning, uh, that we're easily able to adopt. Uh, but clients that weren't were really left behind. Um, so we became very, very busy just supporting the clients that weren't didn't have as much forethought as the likes of guardian, et cetera. >>Nick, that brings up a good point. I want to get your reaction to see if you agree. I mean, people who didn't put their toe in the cloud, or just jump in the deep end, really got flat-footed when the pandemic hit, because they weren't prepared people who were either ingratiated in with the cloud or how many active projects were even being full deployments in there did well, what's your take on that? >>Yeah, the, the enablement we had and, and the gift we were given by starting our cloud journey, and I want to say 2016, 17 was we really started moving to the cloud. And I think we were the only insurer that moved production load to the cloud at that point. Um, most of insurers were putting their development environments, maybe even their environments, but, you know, guardian had a strategy of getting out of the data center and moving to a much more flexible, scalable environment architecture using the AWS cloud. Um, so we completed our journey into the cloud by 2018, 19, and we were at the point of really capitalizing versus moving. So we were able to move very quickly, very nimbly, uh, when, when the pandemic hit or in any digital situation, we have that, that flexibility and capacity that AWS provides us to really respond to our customers, our customer's needs. So we were one of the more fortunate insurers that were well into our cloud journey and at the point of optimization versus the point of moving. >>So let's talk about the connection with, with the sensors, life insurance and annuity platform also known as a, I think the acronym is, uh, what was that? Why was that relevant? What, what was that all about? >>Yeah. So I'll go first and then Kim, you can jump in and see if you agree with me. Um, so >>It's essentially, >>I suspect you would write John, like I said, our new business focus was the original, like the, the, the, the emergency situation when the pandemic hit. But as we went further into it and realized the mortality and morbidity and the needs and wants of our customers, which is a major focus of guardian, really being, having the client at the center of every conversation we have, we realized that there was a real opportunity for product and his product continues to change. And you had regulations like 7,702 coming out where you had to reprice the entire portfolio to be able to sell it by January 1st, 2022, we realized our current systems are for policy admin. We're not matching our digital capabilities that we had moved to the cloud. So we embarked on a very extensive RFP to Accenture and a few other vendors that would come to the table and work with us. >>And we just really got to a place where combination of our, our desire to be on the cloud, be flexible and be capable for our customers. Married really well with the, the knowledge, the industry knowledge and the capabilities that Accenture brought to the table with the Ayla platform, um, their book of business, their current infrastructure, their configuration versus development, really all aligned with our need for flexible, fast time to market. You know, we're looking to cut development times significantly. We're looking to cut tests in times niggly. And as of right now, it's all proving true between the CA the cloud capability and halo capability. We are reaping the benefits of having this new platform, uh, coming up in live very soon here before. >>Well, I get to, um, a center's perspective. I want to just ask you a quick follow-up on that. Nick, if you don't mind the, you basically talk us through, okay, I can see what's happening here. You get with Accenture take advantage of what they got going on. You get into the cloud, you start getting the efficiencies, get the cultural change. What refactoring has you have you seen? What's your vision? I should say, what's your vision around what's next? Because clearly there's a, there's a, there's a, there's a playbook you get in the cloud replatform, you get the cultural fit, you understand the personnel issues, how to tap the resources. Then you gotta look for innovation where you can start changing. What, how you do things to refactor the business model. >>Yeah. So I think that, you know, specifically to this conversation, that's around the product capability, right? So for all too long, the insurance companies have had three specific sleeves of insurance products. We've had individual life. We have an individual disability and we'd have individual annuities, right? Each of them serving a specific purpose in the customer's lives, what this platform and this cloud platform allows us to do is start to think about, can we create the concept of a single rapper? Can we bring some of these products together? Can we centralize the buying process? And with ALA behind the scenes, you don't have that. You know, I kind of equate it to building a Ferrari and attaching a, uh, a trailer to it, right? And that's what we were doing today. Our digital front ends, our new business capabilities are all being anchored down or slowed down by our traditional mainframe backends by introducing Accenture on the cloud in AWS, we now have our Ferrari fully free to run as fast as it can versus anchoring this massive, you know, trailer to it. Um, so it really was a matter of bringing our product innovation to our digital front end innovation that we've been working on for, you know, two or three years prior. >>I mean, this is the kind of the Amazon way, right? You decouple things, you decompose, you don't want to have a drag. And with containers, we're seeing companies look at existing legacy in a way that's different. Um, can you talk about how you guys look at that Nick and terminally? Because a lot of CEO's are saying, Hey, you know what? I can have the best of both worlds. I don't have to kill the old to bring in the new, but I can certainly modernize everything. What's your reaction to that? >>Yeah. And I think that's, that's our exact, that's our exact path forward, right? We don't, we don't feel like we need to boil the ocean. Right. We're going after the surgically for the things that we think are going to be most impactful to our customers, right? So legacy blocks of business that are sitting out there that are, you know, full, completely closed. They're not our concern. It's really hitching this new ALA capability to the next generation of products. The next generation of customer needs understanding data, data capture is very important. And right. So if you look at the mainframes and what we're living on now, it's all about the owner of the policy. You lose connection with the beneficiary or the insured, what these new platforms allowed us to do is really understand the household around the products that they're buying. Right. I know it sounds simple, but that data architecture, that data infrastructure on these newer platforms and in the cloud, you can turn it faster. >>You have scale to do more analysis, but you're also able to capture in a much cleaner way on the traditional systems. You're talking about what we call intimately the blob on the mainframe that has your name, your first name, your last name, your address, all in one free form field sitting in some database. It's very hard to discern on these new platforms, given our need and our desire to be deeper into the client's lives, understanding their needs, ALA coupled with em, with AWS, with our new business capabilities on the front end really puts together that true customer value chain. That's going to differentiate us. >>Okay. I'm okay. CTO of a live as he calls it, the acronym for the service you have, this is a great example. I hate to use the word on-ramp cause that sounds so old, right? But in a way in vertical markets, you're seeing the power of the cloud because the data and the AI could be freed up and you can take advantage of all the heavy lifting by providing some platform or some support with Amazon, the, your expertise. This is a great use case of that, I think. And I think, you know, this is, I think a future trend where the developments can be faster, that value can be faster and your customers don't have to build all that lower level abstractions. If you will. Can you describe the essential relationship to your customers as you guys? Cause this is a real great use case. >>Yeah, it is. You know, our philosophy is simple. Let's not reinvent the wheel and with cloud and native services as AWS and, uh, provide w we want to focus on the business of what the system needs to do and not all the little side bets, we can get a great service. That's fully managed that has, uh, security patches updates. We want to focus on the real deal. Like Nick wants to focus on the business and not so much what's underneath it. That's my problem. I'm focusing on that. And we will work together, uh, in a nice little gel. You've had the relatively new term, no code, low code. You know, it's strange a modern system, like a lip has been that way for a number of years. Basically it means I don't want to make code changes. I just want to be able to configure it. >>So now more people can have access to make change, and we can even get it to the point where it's the people that are sitting there, dealing with the clients that would be the ultimate, where they can innovate and come up with ideas and try things because we've got it so simple. We're not there yet, but that's the ultimate goal. So alien, the no code, no code has been around for quite some time. And maybe we should take advantage of that, but I think we're missing one thing. So as good as the platform is the cloud moving in calculating native services, using the built-in security that comes with all that, um, and extending the function and then being able to tap into, you know, the InsureTech FinTech internet of things, and quickly adapt. I think the partnership is big. Okay. Uh, it's, it's very strong part of the exercise, so you can have the product, but without the people that work well together, I think it's also a big challenge. >>You know, all programs have their idiosyncrasies and there's a lot of challenges along the way. You know, there's one really small, simple example I can use. Um, I'd say guardian is one of our industries, market leaders, when, and when they approach the security, they really do lead the way out there. They're very strict, very, um, very responsible, which is such a pleasure to say, but at the end of the day, you still need to run a business. So, you know, because we're a partnership because we all have the same challenges we want to get to success. We were able to work together quite quickly. We planned out the right approach that maximize the security, but it also progressed the business. So, and we applied that into the overall program. So I think it is the product. Definitely. I think it is, uh, everything Nick said you actually elaborated on, but I'd like to point out there's a big part of the partnership to make it a success. >>Yeah. Great, great call out there, Nick, let's get your reaction on that because I want to get into the customer side of it. This enablement platform is kind of the new platform has been around for awhile, but the notion of buying tools and having platforms are now interesting because you have to take this kind of low code, no code capability, and you still got to code. I mean, there's some coding going on, but what it means is ease of use composing and being fast, um, platforms are super important. That requires real architecture and partnership. What's your reaction. >>Yeah. So I think, you know, I'll, I'll tie it all together between AWS and ALA, right? And here's the beauty of it. So we have something called launchpad where we're able to quickly stand up in AIDAP instance for development capabilities because of our Amazon relationship. And then to Kim's point, we have been successful 85% or more of all the work we've done with Inala is configuration versus code. And I'd actually I'd venture to say 90%. So that's extremely powerful when you think about the speed to market and our need to be product innovative. Um, so if our developers and even our, our analysts that sit on the business side could come in and quickly stand up a development buyer and start to play with, um, actuarial calculations, new product features and function, and then spin that to a more higher end development environment. You now have the perfect coupling of a new policy administration system that has the flexibility and configuration with a cloud provider like Amazon and AWS that allows us to move quickly with environments. Whereas in days past you'd have to have an architecture team come in and stand up the servers. And, you know, I'm going way back, but like buy the boxes, put the boxes in place and wire them down. This combination available in AWS has really a new capability to guardian that we're really excited about. >>I love that little comparison. Let me just quickly ask you compared to the old way, give us an order of magnitude of pain and timing involved versus what you just described as standing up something very quickly and getting value and having people shift their, their intellectual capital into value activities versus undifferentiated heavy lifting. >>Yes. I'll, I'll give you real dates. Right? So we engage really engaged with Accenture on the ALA program. Right before Thanksgiving of last year, we had our environment stood up and running all of our vitamins dev set UAT up by February, March timeframe on AWS. And we are about to launch our first product configuration into the, of the platform come November. So within a year we've taken arguably decades of product innovation from our mainframes and built it onto the Ayla platform on the Amazon cloud. So I don't know that you can do that in any other type of environment or partnership. >>It's amazing. You know, that's just great example to me, uh, where cloud scale and real refactoring and business agility is kinda plays out. So congratulations. I got to ask you now on the customer side, you mentioned, um, you guys love, uh, providing value to the customers. What is the impact of the customer? Okay, now you're a customer guardian life's customer. What's the impact of them. Can you share how you see that rendering itself in the marketplace? >>Yeah, so, so clearly AWS has rendered tons of value to the customer across the value stream, right? Whether it be our new business capability, our underwriting capability, our ability to process data and use their scale. I mean, it just goes on and on about the AWS, but specifically around ad-lib, um, the new API environment that we have, the connectivity that we can now make with the new backend policy admin systems has really brought us to a new, a new level. Um, whether it be repricing, product innovation, um, responding to claims capabilities, responding to servicing capabilities that the customer may need. You know, we're able to introduce more self-service. So if you think about it from the back end policy admin, going forward to our client portal, we're able to expose more transactions to self-serve. So minimize calls to the call center, minimize frustration of hold times and allow them to come onto the portal and do more and interact more with their policies because we're on this new, more modern cloud environment and a new, more modern policy admin. So we're delivering new capabilities to the customer from beginning to end being on the cloud with, with, >>Okay, final question. What's next for guardian life's journey year with Accenture. What's your plans? What do you want to knock down for the next year? What's what's on your mind? What's next? >>Uh, so that's an easy question. We've had this roadmap plan since we first started talking to Excentra, at least I've had it in my head. Um, we, we want off all of our policy admin systems for new business come end of 2025. So we've got about four policy admin systems maintaining our different lines of business, our individual disability or life insurance, and our newest, um, four systems that are kind of weighing us down a little bit. We have a glide path and a roadmap with Accenture as a partner to get off of all of these, for new business capability, um, by end of 2024. And that's, you know, I'm being gracious to my teams when I say that I'd like to go a little bit sooner, and then we begin to migrate the, the most important blocks of business that caused the most angst and most concerned with the executive leadership team and then, you know, complete the product. >>But along the way, you know, given regulation, given new, uh, customer customer needs, you know, meeting the needs of the customers changing life, we're going to have parallel tracks, right? So I envision we continue to have this flywheel turning of moving, but then we begin another flywheel right next to it that says we're going to innovate now on the new platform as well. So ultimately John, next year, if I could have my entire whole life block, as it stands today on the new admin platform and one or two new product innovations on the platform as well, by the third quarter, fourth quarter of next year, that would be a success. As far as that. >>Awesome. You guys had all planned out. I love, and I have such a passion for how technology powers business. And this is such a great story for next gen kind of where the modernization trend is today and kind of where it's going. It's the Nick. Appreciate it, Kim. Thanks for coming out with a censure Nixon. It's an easy question for you. I have to ask you another one. Um, this is, I got you here. You know, you guys are doing a lot of great work for other CEOs out there that are going through this right now, whether whatever they are on the spectrum missed the cloud way of getting in. Now this notion of refactoring and then replatforming, and then refactoring business is a playbook we're seeing emerge. People can get the benefits of going to the cloud, certainly for efficiency, but now it opens up the aperture for different kinds of business models. With more data access with machine learning. This refactoring seems to be the new hot thing where the best minds are saying, wow, we could do more, even more. What's your vision? How would you share those folks out there, out there, or the CEOs? What should they be thinking? What's their approach? What advice would you give? >>Yeah, so a lot of the mistakes we make as CEOs, we go for the white hot core first, right? We went the other way. We went for the newer digital assets. We went for the stuff that wasn't as concerning to the business should be fall over. Should there be an outage? Should there be anything? Right? So if you avoid the white hot core, improve it with your peripherals, easier moves to the cloud portals, broker, portals, um, beneficiary portals, uh, simple, you know, AIX frames, moving to the cloud and making them cloud native new builds. Right? So we started with all those peripheral pieces of the architecture and we avoided the white hot core because that's where you start to get those very difficult conversations about, I don't know if I'm ready to move. And I don't see the obvious benefit of moving a dividend generating policy admin system to the cloud. Like why, when you prove it in the pudding and you put the other things out there and prove you can be successful the conversation and move your core and your white hot core out to the platform out to leverage the cloud and to leverage new admin platforms, it becomes a much easier conversation because you've kind of cut your teeth on something much less detrimental to the business. Should it be >>What's the other expression, put water through the pipes, get some reps in and get the team ready to bring training, whatever metaphor you. That's what you're essentially saying. There, get, get some, get some, get your sea legs, get, get practice >>Exactly. Then go for the hard stuff, right? >>It's such a valid point. John is, you know, we see a lot of different approaches across a lot of different companies and, and the biggest challenges, the core is the biggest part. And if you start with that, it can be the scariest part. And I've seen companies trip up big time and you know, it becomes such a bubble spend, which really knocks you on for years, lose confidence in your strategy and everything else. And you're only as strong as your weakest link. So whether you do the outside first or the inside first from a weakest link until it's, the journey is complete, you're never going to maximize. So it was a, it was a very, uh, different and new and great approach that they took by doing a learning curve around the easiest stuff. And then, >>Yeah. Well, that's a great point. One quick, quick followup on that is that the talk about the impact of the personnel, Kim and Nick, because you know, there's a morale issue going on too. There's a, there's a, there's a training. I won't say training, but there's not re-skilling, but there's the rigor. If you're refactoring, you are, re-skilling, you're doing new things, the impact on morale and confidence. If you're not, you get the white, you don't wanna be in the white core unconfident. >>Maybe I should get first. Cause it's Nick's stuff. So he probably might want to say a lot, but yeah. Um, what we see with a lot of insurance companies, uh, they grow through acquisition. Okay. They're very large companies grown over time, uh, buying companies with businesses and systems and bringing it in. They usually bring a ten-year staff. So getting the staff to the next generation, uh, those staff is extremely important because they know everything that you've got today, and they're not so, uh, fair with what's coming up in the future. And there is a transition and people shouldn't feel threatened, but there is change and people do need to adopt and evolve and it should be fun and interesting, but it is a challenge at that turnover point on who controlling what, and then you get the concerns and get paranoid. So it is a true HR issue that you need to manage through >>The final word here. Go for it. >>Yeah. John, I'll give you a story that I think will sum the whole thing up about the excitement versus contention. We see here at guardian. I have a 50 year veteran on my legacy platform team and this person is so excited, got themselves certified in Amazon and is now leading the charge to bring our mainframes onto a lip and is one of the most essential. And I've actually had Accenture tell me if I had a person like this on every one of my engagements who is not only knowledgeable of the legacy, but is so excited to move to the new. I don't think I'd have a failed implementation. So that's the kind of guardian, the kind of backing guardians putting behind this, right? We are absolutely focusing on rescaling. We are not going to the market. We're giving everyone the opportunity and we have an amazing take-up rate. And again, like I said, 50 year veteran who probably could have retired 10 years ago is so excited, reeducated themselves, and is now a key part of this implementation, >>Hey, who wouldn't want to drive a Ferrari when you see it come in, right? I mean Barston magnet trailer. Great story, Nick. Thank you for coming on. Great insight, Kim, great stuff for the century as always a great story here, right? At the heart of the real focus where all companies are feeling right now, we're surviving and thriving and coming out of the pandemic with a growth strategy and a business model with powered by technology. So thanks for sharing the story. Appreciate it. Thanks John. Appreciate it. Okay. So cube coverage of 80 of us executive summit at re-invent 2021. I'm John furrier, your host of the cube. Thanks for watching.

>> Announcer: Live, from Las Vegas, it's theCube! Covering NAB 2017. Brought to you by HGST. >> Hey welcome back everybody, Jeff Frick here with theCUBE. We're at NAB 2017, a hundred thousand people. The Las Vegas Convention Center is packed. And it's everything you could ever want to get involved in video and media, and it' pretty crazy exciting. I hope, trying and get the guys from spending all of our budget money next year on new cameras. But, we're excited to have Brian Raleigh on. He's a VP post-production and production business intelligence at ABC Studios. Welcome. >> Thank you, I'm excited to be here, as well. >> Absolutely, so first impressions of the show. You said you haven't been that many times. As you walk around, what strikes you? >> Yeah, this is only my second time here. I will say I've seen plenty of booths that have the words Ingestion, Transcode, Archival, Distribution, there certainly is a lot of distribution out here, the broadcasting convention. >> Jeff: Right. >> Which makes sense. >> But you're involved in that pesky little process between what comes off the camera and what goes out to distribution. >> Yeah, exactly. We're prior to broadcast, right. So my world is really production and post-production, and the production management systems we use within them. >> Right. So love to hear, kind of, how is that world evolved? It used to be you had an artist on a machine, with local files doing the editing and all this stuff, and clearly that world is long, long gone. >> Yeah, most of our production and post-production workflow is in the cloud. >> Jeff: Right. >> Or however you want to call it. And very recently, what we've done, is we've tried to move on from the kind of, email-based world and saving everything on your desktop-based world, a lot of it revolves around the push to move off of that revolves around security. >> Jeff: Right. >> Efficiencies, better distribution, better control over who has access to what. So my role is really to introduce digital production management systems. Digital daily systems, digital purchase order systems. Digital scheduling systems. >> Jeff: Right. >> Kind of take us into more of like a wholistic, one-way world that covers both the production side as well as the studio side. >> And where would you say you are on that journey? >> Year one, is what I would say. >> Year one. Early in year one, early days. >> So our department is called, the Production Business Intelligence Department, but that's really, I would say we have more enthusiasm for business intelligence than we do have knowledge of business intelligence. >> Jeff: Right, right. >> So phase one is really getting our systems rolled out. To get these digital systems in use, with 100% adoption, on all of our shows, and all of our studio and network users. Once we have that piece done, we can actually start to collect the data and make some use out of it. >> Right, right And how has kind of the efficiency in the workflow, I know you're still early days, how do you anticipate it really being impacted by moving to more cloud-based systems versus local, on your hard drive controlled? >> Yeah, so security is a hundred times better than it was before, right? Just because everything is hidden behind a password now. Access is much more controlled. Efficiency has increased many times over, as well. I'll say that we project, over the course of our first year with these systems, we will have reduced our email count, just within the studio, by 650,000. >> Well, who doesn't love that. >> Right, exactly. I keep telling them it's good. >> Jeff: Golly. >> Everything is more searchable now. >> Jeff: Right. >> Higher quality. We're getting things faster. Our PAs are no longer burning thousands of DVDs and distributing them all across town, so it's improved our world in many ways. >> Right, and how do you kind of boil that ocean. Is it kind of by department, is it by show, is it one little slice kind of spread really, really wide? I mean, that's a big roll out. You guys are a huge studio. >> When the department, that used to be called the Production Technology Department, and when it started eight, nine years ago, the approach was really like, let's build everything in house, and try to piece it out one by one. What we have learned is, that doesn't really work. It's really difficult to get adoption and it was going to take a huge workforce in order to build what we needed. >> Jeff: Right. >> So we started to go with the Best in Breed approach, with these applications. And what came with them was 24/7 support and kind of white glove training and admin services. >> Jeff: Right. >> So because I have a really small centralized team, they can focus on just the training administration. And we have really this third-party service team that comes with each one of these production management systems that we use. >> Right. >> So we've been able boil the ocean because we have a lot of help. >> Right. And the other nice thing is just because of the nature of the studios, teams kind of form around shows, right? So now you can onboard a new team around your infrastructure piece. They do the show for one season, two seasons, however many season. >> Brian: Yeah. >> Then they go away. >> Yeah, what's been really good is even though it's a huge training endeavor, for sure, with our production teams, because we have something like, 8,000 people on our freelance production teams at any time. And they're a transient workforce. They go from studio to studio and show to show. >> Jeff: Right. >> But I think something like 60 to 70% of the people that we hire, we've hired before. >> Jeff: Okay. >> So the good news is once we've trained them once, there's a good likelihood that we won't need to train them again. >> Right. And, so there's kind of the application centric piece of it, and then there's kind of the infrastructure piece behind the application. I mean, good news is, you didn't have it eight years ago, but I mean the development's on the infrastructure side around storage and bandwidth and CPU. Huge change from where it was before. I mean, could you even have done what you were hoping to do eight years, kind of compared to where you are today? No, I don't think, the companies just didn't exist at that point. That's right. So the companies weren't there because the technology wasn't there. >> Jeff: Right. >> Now they've both kind of aligned, and aligned at a good time, right? When I think people are ready to hear that we need to modernize the studio. There's so much competition out there, that we need to make sure that we're doing things as good or better than everyone else. >> Right. And you said security a bunch of times. >> Brian: Yeah. >> So was the security, was it a security hole? Was it people forgetting their laptop at the coffee shop? >> Brian: Yeah. >> I mean what were some of your main security concerns that you've now been able to address? >> It's interesting. So we're ABC Studios, but we do a lot of co-productions with Marvel Studios. And Marvel Studios culture is very security centric. And because we worked so hand-in-hand with them, we've been very cognizant of the security abilities of these applications as we bring them in. So I will say, we didn't have any big outbreaks, right? We didn't have, we had shows like Lost, that people were really concerned about. >> Right. >> Scripts getting out, but more recently, we haven't had these huge high security titles, but now that Marvel is onboard, it's made us very security conscious. >> Okay. And it's more early leaks that people getting access to the assets-- >> Yeah, mostly we're worried about scripts. >> Right, right. Really, mostly scripts, as opposed to images, or-- >> Well, you're right. Scripts and rough cuts, I would say. >> Right, right, right. Okay, so that's kind of the bat, the stick. In terms of a carrot, what were some of the benefits that you hoped to achieve or you are really starting to achieve on the carrot side of the equation? >> Well, so we're still in phase one, as I said, in kind of rolling out these applications. >> Right, we'll let you talk about this in private. We will not hold you to whatever you say that's being, actually in production. >> The carrot, is so we're now called production business intelligence, but we don't have much intelligence, at this point, so, now that we're seeing some light at the end of the tunnel, in terms of rolling out these systems, the hope is, the carrot is, we're going to be able to find some really great business insights from the data we collect. The kinds of questions we want to be able to answer are things like, which of our directors that are hire are costing us the most in production staff overtime. When an editor's cut delivers, and it delivers 11 minutes long, how does that correlate with the length and complexity of the script? You start to learn these things, and the hope will be that what was going to be a nine-day production schedule, we really can do it in eight. >> Jeff: Right. >> We'll have the data, not just anecdotally, but like real data to back that up. >> Right. Now I wonder, and don't tell me if you can't, but within kind of the whole budget of a movie, production, post-production, distribution, promotion, what piece is post-production? I mean, I just think of the complexity of it. It can be just a sinkhole, if it's not managed well. >> Yeah, as a part of the production, well it depends on the show, right? >> Right, right, you know, kind of a general-- >> The variance is in visual effects, right, but I would say 10 to 20% of the budget is post-production. >> Jeff: Okay. >> And the systems piece of it is much, much less. >> Jeff: Right, right. >> One, maybe one percent. >> Right. So you could make a pretty significant impact >> Yeah. >> On the budget by being more efficient. >> For sure. >> And leveraging that intelligence. >> Well, below the line, which is what these systems really do impact, so not just post-production but production, as well as two-thirds of the budget. So absolutely, I mean that's many millions of dollars. >> Right, right. Okay, so as you look forward, have you got any insights that are kind of helping you drive to the next place, or are you just kind of working down a road map as you look at 2017, I know we're a third of the way through, which I find really hard to believe. What's kind of on your agenda, what's next, where are you going next? >> I'd say we're still working down the roadmap. We have, like I said, we have documents figured out, we have digital dailies figured out, we have production purchase orders figured out, now we're going to start looking at asset management. And we're going to start looking at scheduling. In hopes that ultimately we can really, I guess the real vision here is that we can have kind of a production ratio, right? We can start to rate our productions against each other based on all of this information that we have, but it requires some additional systems first. >> All right, Brian. Well, I wish you, at least you've got 650,000 less emails. >> I know it's a good start. >> I mean that should free up a ton of time. >> Brian: Yes. >> That's a great start. All right, he's Brian Raleigh from ABC, I'm Jeff Frick. Again, thanks for stopping by. >> Brian: Thank you. >> All right, you're watching theCUBE, from NAB 2017. Thanks for watching. (techno music)