(upbeat music) >> We're back at the ARIA in Las Vegas you're watching theCUBE's coverage of Veeamon 2022 live in person, but there's a big hybrid event going on. Close to 40,000 people watching online. This is the CEO segment. The newly minted CEO Anand Eswaran is here. And it's great to see you. Thanks for coming on. First time on theCUBE. >> Yeah, first time on theCUBE, excited to be here. Newly minted, those words, I haven't heard those for a long time. But thank you for the warm introduction, Dave. >> So why Veeam? What did you see that attracted you to Veeam? You have a great career, awesome resume. Why Veeam? >> A lot of different things. You know, it started with when I spent a good bit of time... I spent months with, you know, Insight, with Bill Largent who is now the chair of the board. And for me a few things, one, it started with the company culture. I absolutely loved... I spent time with our engineering team that it's an innovation-focused culture. It's an engineering-focused culture, which is so critical to any software company. And so that was the first place. And I spent a good bit of time with customers, reading, research, you know, brilliant products, always innovating. You know, even though it's a category you would think is fairly mature. I mean, when Veeam for example, did instant recovery. I mean, that was extreme innovation. And so that was the first thing which was appealing. The second thing was, you know, yes, we've reached a billion, but it still has that, you know, feel of a start up. It still has that feel of a... Jeff Bezos says this best, "A day one culture." Which is super critical, you know, we scale but you don't want to lose your soul and what made you special in the first place. And then you come down to the rest of the stuff, it's an execution machine. You know, it's an absolutely interesting category, especially in the day and the world we live in right now. You know, the proliferation of bad actors, security, backup, recovery, you know, everything you... Ransomware is starting to become you know, a meaningful threat to every company. So many different things coming together. This category is an interesting place. But that's not all, I feel that we are going to see this category evolve and shape very differently. You're going to see adjacencies coming and you're going to see in a couple of years or three years you're not going to just look at this and say, "Hey, it's backup and recovery." And so it's an opportunity to shape what is going to be a very important inflection point in this whole space. So a whole bunch of things. Excited about it. >> So flip question, why Anand? What did Insight see and the board see? What do you see as your key skills that they wanted here? Go after that opportunity- >> You should also get insight on this man. And you should ask them this question. I know Peter and Sokolov (laughs) >> So, you know, I don't know... I'll tell you where I think there's relevant experience is if I look at the future of Veeam. I think the first thing is we've got to think through what the next evolution of Veeam is. You know, there's a ton of work to do even in the path we are on, on data protection. And the team is absolutely brilliant at that. But how do you start to think ahead? How do you think about data management? How do you think about, you know, where are the adjacencies and how does it... How do you shape and reshape the category? You know, and I have some experiences in that. As I look at growth, Veeam has done a phenomenal job you know, 35,000 partners, an execution machine. I mean, just last year we grew ARR, you know, 27% we are sustaining that growth. But as I look ahead, you know there's huge opportunities to further accelerate our share in the enterprise to actually go work with creating multiple layers of partnerships beyond the very successful partnerships we already have. You know, how do you start to get GSIs in the mix? How do you start to get MSPs in the mix? How do you start to actually get to being a core part of the portfolio and platform of our primary storage partners, HPE, Pure Storage and so on. So reinvigorating and creating a multidimensional partnership strategy is key as well. And then just my experience in, you know I ran the enterprise for Microsoft and so those sort of experiences sort of are very relevant to our next step of the journey as well. And finally, you know I think the one thing which matters most for me and yeah, you realize... Again, I think we've forgotten what it means to have a microphone on. But culture, you know, I spent a lot of time in every company I've worked in, in contributing to the culture of what shapes and you know how do you create a purpose-led company and how do you get on that path? Which is a very, very important conversation inside Veeam. you know, and we already do that... You know, there's a huge focus on purpose. There's a huge focus on diversity. There's a huge focus on inclusion, but you know, the cultural aspect of Veeam attracted me to it. And I think my work and my passion for it attracted me to Veeam as well. So just a few of those things. >> Yeah, you speak from the heart, you can sense that. Dave and I were talking with Zias about platform versus product. Now you've got some experience with platforms, obviously, Microsoft, you know the amazing platform. RingCentral Zias brought up. And then I brought up HP, which actually never could figure out its software platform. So you've seen some successes. You've seen some, you know, couldn't ever get there. Do you see Veeam as a platform company? >> You know, the way I look at it is this. I mean, I may actually not answer your question directly but I'll answer the question. >> Dave: Okay. >> Which is, if you look at the biggest successes in the industry, call it Microsoft, Adobe now- >> Dave: Sure. >> Salesforce, eventually the path from a high growth startup to scale is platform and partners. That is the key. >> Dave: Ecosystem- >> So yeah. Platform and the ecosystem. So it all comes together. And so, yes, I mean, I think we already do that. I mean, we have a singular platform today for the multiple workloads we protect from, you know physical to cloud, to Kubernetes to the hybrid architectures the ability to actually, you know restore your data into any cloud, you know, back up from AWS restore into Azure or a physical data center. So we already have a robust platform in place but the scale or the growth from where we are a billion to the next set of milestones 2, 3, 5, 10 is going to be an absolute maturity and amp of platform partnerships ecosystem. >> That's a high wire act. When you talk about platform and scaling, you know, think about moving forward, when you have pressure to grow, often the easiest thing to grow is to acquire and add adjacencies that might not be as core to your core value proposition as they could be. How do you navigate that as you move forward in a world where... Look, Veeam was founded in an age when it was all about meantime between failure, recovery point, recovery time objectives. Now the big concern is malicious actors. So Veeam has been able to navigate that transition very well so far, but how do you do that? How do you balance that moving forward? This idea of platform is a desirous state to be in but you don't want to be a fake platform where you just glue a bunch of things on. >> It all comes down to thinking through where we see the world going from this point in time. How do you see technology evolving? How do you see the outside's, you know influences evolving. And when I say influences, it's, you know, just a euphemism for all the bad actors we expect to see getting even more active. So, you know, the way I think about it is either platform or acquisitions are not things you do piecemeal or point in time. It all needs to accrue to a larger strategy of how you create the ability for all of your customers to own protect, secure, you know their data and eventually create intelligence from it so that they can actually be proactive about it. So that, you know, if that's the thing, you know, our ambition is starting to become how do we sort of secure the world's data and help companies create intelligence from it so they can be proactive about it? You know, everything else sort of accrues from there the platform we evolve from the platform we already have, you know, stems from it. The acquisitions we may do, will do evolves from it. It all are... You know, its pieces coming together to the overall puzzle framework we've already created. >> Yeah. I have so many questions for you. And I want to get into a little bit of your philosophy, but before we do it, I want touch on the TAM a little bit more. You mentioned in the analyst discussion this morning that the market's fragmented. A lot of people think, "Oh, backup, storage, we'll just put it together. You know, Dell now or EMC brought it all together." But they're just dramatically different markets. You're seeing some of your competitors. One in particular is now kind of pivoting to security. It's an adjacency, but it's, yeah, I'm not sure you want to walk into that mess but it's clearly part of a data protection strategy. And you said you want your... My words, legacy to be a significant increase in market share, dominant position in the market. Even if it's number two, whatever, number one's nice, great. But much larger share than what is your 10, 12% today. How do you think about the TAM? It's so undercounted, I think. You know, we used to look at purpose built backup appliances, "Oh, it's a couple billion dollar market and it's a ceiling there." It reminds me of service management with ServiceNow. It's virtually unlimited TAM because it's data. How do you look at the TAM? >> How much time do you have? >> I know, I got so many questions- >> But I'll tell you this, right? You got to piece this question very carefully because I'll look at it in a variety of different ways. Number one, if you do nothing, if you just do nothing. I mean, today, as I shared in IDCs latest report last week we were joined number one, you know, for the first time we actually got- >> Dave: Yeah. Congratulations. That's a big milestone. >> That's huge, that's exciting. >> Dave: And that's revenue by the way. That's not licenses- >> Yeah. That's in share. But the thing is this, right? If, if you look at share, we are at 12%, you know as is the... You know, so 12% is not representative of how I think about number one. When you look at a market with a clear winner you expect to see 40 to 60% market share. So doing nothing is an opportunity to actually continue the path we are on which is taking share from every one of the top five significantly and growing as fast as we are. I mean, we are going to be on a path to, you know doubling our market share in the next two to three years. So there's share to gain doing nothing. And this is... You know what? This is the first and the most simplest aspect of TAM. Now layer in other aspects of TAM but just still stay in data protection. You know, talk about every single SaaS workload coming on. I mean, I shared 270 million Teams' users right now monthly actives. The TAM, if you were able to secure every one of those Teams' users and protect the data, I mean that's close to 6 or $7 billion. It's not factored in into any of the TAM numbers you see right now. Gartner talked about 13. You know, others talked about TAM being 40. I mean, but SaaS workloads, you know each of them are not factored in as much as it could be right now. So, you know, we are bringing in Salesforce, Microsoft 365. We secure 11 million paid users with Microsoft 365 backup. And so add all of them on, execute. We see a path to taking share and getting from here 12 to 25 to 40 and being an outsize number one. And then you'd come down to what you said, which is how do you think about adjacencies? Now, at Veeam, yeah, messaging is important, but unlike some of the competitors, we don't use words frivolously. If we say something, data protection, modern data protection, ransomware attacks, we mean it. And there's product truth behind it. We do not use frivolous security words to create a message and get attention and have no product truth behind it. That's where we are. We expect to see adjacencies come up. We expect Veeam to beyond execution and bringing in more SaaS workloads to look at the next layer of data management. We expect us to create partnerships which allow us to go do that meaningfully. And as time goes, you should expect us to be the prime influencer in reshaping this category with other adjacencies coming in. But we talk about it and there's product truth behind it. >> I wanted to get into your philosophy of management a little bit. I went to your LinkedIn recently and I loved the little graphic that you had. But I know a lot of people put up a picture of a pretty lake or mountains. I got theCUBE up there. You had a number of items. I wonder if I could read. You had a rocket ship, which was very cool. You had teamwork, you had innovation. I wrote down ABC, always be closing, Alec Baldwin. But everybody sells, I think is what it was and then keep it simple. >> Anand: Yep. >> I really like that. I mean, people going to... If they're going to evaluate Veeam they're going to go to your LinkedIn page. So tell us where that came from what your philosophy is as a manager. >> Yeah, no. So there's a few things and this is the philosophies which I put on is a meld of what I believe in and what Veeam believes in and has believed in for a long time which is life starts with a customer. For us, everything starts with a customer. You know, even the product creation philosophy 15 years back was, "Hey let's not just create some check marks and create a feature because someone, you know thought it's an important check mark to have." What is the value it creates for the customer? And is it different enough, unique enough, where, you know, it actually creates a moment where the customer sees the value impact their core business. That's where it all starts for us at Veeam. And then everything we do relates back to, "Is this moving the ball enough for our customers and for our partners and for our developers and users?" Everything comes back to there. Are we easy enough to do business with? You know, are we keeping it simple? Simple to use. A product should be really simple. It should be brain dead simple, you know are our processes such that, you know it's easy for us to connect with our partners, connect with our customers, connect with our users, you know it all comes back to keeping it really simple. And then, you know, I come down to a set of personal philosophies, which matters as well, which is, you know, how do we make sure that, you know, we used to say everyone is in sales, but we got to evolve it. Everyone is in customer success because we all know that it's not just the first sale which matters which was true 15 years back, what matters today is, yeah, the sale matters, everybody is there to sell. But what matters even more is the whole company rallies behind the customer's success at every step along the way. Because when you do that, you don't need to sell. You know, you get in through BBR and then we have a world of workloads to actually create value for the customer with, from, you know Microsoft 365 backup or, you know soon to come Salesforce backup cost. And we see that on net retention or, you know... And it's manifested in numbers, right? It's manifested in growth. It's manifested in net retention and it's manifested in NPS. I mean, Dave, I'm hugely excited about that, man. NPS of 80 where we are. I mean, you guys have been around for quite a bit. I mean, that's huge numbers. I mean, that's- >> Apple's- >> Apple was 76 or 77. And so eventually that is what matters more for me because it's... Share is important. And I'm excited about, you know, IDC saying, "You're joint number one." Hugely important, but that is a consequence. Growth is important. 25% ARR growth in Q1, super important but that is a consequence. What really matters is value for your customers. And the number one metric I look at is NPS, you know and NPS at 80, all the other things start to happen pair it with the engineering culture the innovation culture we have, long roadmap ahead. >> Veeam has made some... What appear to be, from the outside anyway, pretty successful acquisitions. Kasten is an obvious one. I remember it wasn't the first time I met Ratmir. It was maybe the third or fourth time we were at like a late night, Peter Bell party this Highland Capital at VMware. And we were walking down Howard Street. I see Ratmir and some of his colleagues, we start chatting. We, you know, got into a good conversation. I'm like, "What about an IPO?" He goes, "We're not doing an IPO. We don't need to do an IPO." And then several years later on theCUBE, he's like, "No, I'd be open to an IPO." And then of course the big acquisition happened. So you've got an opportunity here M and A obviously is a possibility. But what about the IPO in your future? Presumably, that's something Insight wants to do. What can you tell us about that? >> No, it's a great question. I was waiting when you were going to ask me that question. But this is what I would say which is, by the way, Veeam, at today's numbers, I mean, we shared numbers at the end of last year. 1.1 billion in ARR, 1.2 in revenues, 99.99% organic, right? You know, Kasten was the only acquisition we shared how Kasten is a blip at this point in time. And so the philosophy has always been organic. And as I look ahead, this is how I think about it. I think the pace of market change is going to be extreme. And so we will be a lot more open-minded, thinking about acquisitions for complimentary technologies which allow us to expand TAM and think about adjacencies, more to come there. IPO, see the good thing is this, a lot of companies want to enter the public markets to raise money, create liquidity. That's not the primary lens for us. And so the good news is that, you know we are incredibly profitable. We shared, you know, 30% EBITDA, you know, for 2021. So money is not the issue, but we do think that we entering the public markets is a good thing for a variety of other reasons, because when you are public and it comes with the, you know, transparency, which we believe we're already transparent. But it puts the focus on you. And that creates even better growth impetus. Especially as you go work with large enterprise customers they are a lot more amenable and you know and so we feel that it's a strategy of growth not a strategy of liquidity for us, but stay tuned. You know, I fully expect for something like that to happen sometime towards the middle of next year, to the end of next year. >> Yeah, we had a similar conversation with Frank Slootman they obviously were able to raise money. But wow, what a change since the snowflake IPO in terms of just the brand value. And again, so many questions. I thought your keynote was great, by the way. >> Anand: Thank you. I love the focus on, you know, ransomware, of course. I thought the bot jokes were great. Keep 'em coming. I mean, I really did enjoy- >> (laughs) Absolutely. >> It lightens things up. So thanks so much for coming on theCUBE, really appreciate your time. >> Absolutely appreciate it, Dave and Dave. By the way, I mean, it's funny, I mean about, you know, Dave and Dave, Dave and David reminded me of Thompson and Thompson, guess which comic book they're from? >> Thompson and Thompson- >> Thompson and Thompson. I don't know. >> Don't know. >> Tin Tin. >> Oh (laughs). >> (laughs) So you got to go read up. You guys don't look anything like that, but Dave and Dave, was an absolute pleasure. My first theCUBE and look forward to many more to come. >> Love to have you back- >> Absolutely. >> All right. Thank you for watching. >> Thank you. >> Keep it right there. TheCUBE's coverage of Veeamon 2022, 2 days of wall to wall coverage here at the ARIA in Las Vegas, we'll be right back. (upbeat music)

>> From theCUBE Studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE in ETR. This is "Breaking Analysis" with Dave Vellante. >> Cisco is a company at the crossroads. It's transitioning from a high margin hardware business to a software subscription-based model, which also should be high margin through both organic moves and targeted acquisitions. It's doing so in the context of massive macro shifts to digital in the cloud. We believe Cisco's dominant position in networking combined with a large market opportunity and a strong track record of earning customer trust, put the company in a good position to capitalize on cloud momentum. However, there are clear challenges ahead for Cisco, not the least of which is the growing complexity of its portfolio, a large legacy business, and the mandate to maintain its higher profitability profile as it transitions into a new business model. Hello and welcome to this week's Wiki-bond cube insights powered by ETR. In this breaking analysis, we welcome in Zeus Kerravala, who's the founder and principal analyst at ZK Research, long time Cisco watcher who together with me crafted the premise of today's session. Zeus, great to see you welcome to the program. >> Thanks Dave. It's always a pleasure to be with you guys. >> Okay, here's what we're going to talk about today, set the agenda. The catalyst for this session, Zeus and I attended Cisco's financial analyst day. We received a day and a half of firehose presentations, drill downs, interactions, Q and A with Cisco execs and one key customer. So we're going to share our takeaways from these sessions and add our additional thoughts. Now, in particular, we're going to talk about Cisco's TAM, its transformation to a subscription-based model, and how we see that evolving. As always, we're going to bring in some ETR spending data for context and get Zeus' take on what that tells us. And we'll end with a summary of Cisco's cloud strategy and outlook for how it could win in the cloud. So let's talk about Cisco's sort of structure and TAM opportunities. First, Zeus, Cisco has four main lines of business where it's organized it's executives around sort of four product areas. And it's got a large service component as well. Network equipment, SP routing, data center, collaboration that security, and as I say services, that's not necessarily how it's going to market, but that's kind of the way it organizes its ELT, its executive leadership team. >> Yeah, the in fact, the ELT has been organized around those products, as you said. It used to report to the street three product segments, infrastructure platforms, which was by far the biggest, it was all their networking equipment, then applications, and then security. Now it's moved to five new segments, secure agile networks, hybrid work, end to end security, internet for the future and optimized app experiences. And I think what Cisco's trying to do is align their, the way they report along the lines of the way customers buy. 'Cause I think before, you know, they had a very simplistic model before. It was just infrastructure, apps, and security. The ELT is organized around product roadmap and the product innovation, but that's not necessarily the way customers purchase things and so, purchase things so I think they've tried to change things a little bit there. When you look at those segments though, you know, by, it's interesting. They're all big, right? So, by far the biggest distilled networking, which is almost a hundred billion dollar TAM as they reported and they have it growing a about a 9% CAGR as reported by other analyst firms. And when you think about how mature networking is Dave, the fact that that's still growing at high single digit CAGR is still pretty remarkable. So I think that's one of those things that, you know, watchers of Cisco historically have been calling for the network to be commoditized for decades. For as long as I've been watching Cisco, we've been, people have been waiting for the network to be commoditized. My thesis has always been, if you can drive enough innovation into things, you can stave off commoditization and that's what they've done. But that's really the anchor for them to sell all their other products, some of which are higher margin, some which are a little bit sore, but they're all good high margin businesses to your point. >> Awesome. We're going to dig into that. So, so they flattened the organization when Geckler left. You've got Todd Nightingale, Jonathan Davidson, Liz Centoni, and Jeetu Patel who we heard from and we'll make some comments on what we heard from them. One of the big takeaways at the financial analysts meeting was on the TAM, as you just mentioned. Liz Centoni who also is heavily involved in strategy and the CFO Scott Herren, showed this slide, which speaks to the company's TAM and the organizational structure that you were just talking about. So the big message was that Cisco has got a large and growing market, you know, no shortage of available market. Somewhere between eight and 900 billion, depending on which of the slides you pull out of the deck. And ironically Zeus, when you look at the current markets number here on the right hand side of this slide, 260 billion, it just about matches the company's market cap. Maybe an interesting coincidence, but at any rate, what was your takeaway from this data? >> Well, I think, you know, the big takeaway from the data is there's still a lot of room ahead for Cisco to grow, right? Again, this is a, it's a company that I think most people would put in the camp of legacy IT vendor, just because of how long they've been around. But they have done a very good job of staving off innovation. And part of that is just these markets that they play in continue to grow and they continue to have challenges that they can solve. I think one of the things Cisco has done though, since the arrival of Chuck Robbins, is they don't fight these trends anymore, Dave. I know prior to Chuck's arrival, they really fought the tide of software defined networking and you know, trends like that, and even cloud to some extent. And I remember one of the first meetings I had with Chuck, I asked him about that and he said that Cisco will never do that again. That under his watch, if customers are going through a market transition, Cisco wants to lead them through it, not try and hold them back. And I think for that reason, they're able to look at, all of those trends and try and take a leadership position in them, even though you might look at some of those and feel that some of them might be detrimental to Cisco's business in the short term. So something like software defined WANs, which you would throw into secure agile networks, certainly doesn't, may not carry the same kind of RPOs and margins with it that their traditional routers did, but ultimately customers are going to buy it and Cisco would like to be the ones to sell it to them. >> You know, you bring up a great point. This industry is littered, there's a graveyard of executives who fought the trend. Many people, some people remember Ken Olson of Digital Equipment Corporation. "Unix is snake oil," is what he said. IBM mainframe guys said, "PCs are a toy." And of course the history, they were the wrong side of history. The other big takeaway was the shift to software in subscription. They really made a big point of this. Here's a chart Cisco showed a couple of times to make the point that it's one of the largest software companies in the world. You know, in the top 10. They also made the point that Chuck Robbins, when he joined in 2015, and since that time, it's nearly 4x'ed it's subscription software revenue, and roughly doubled its software sales. And it now has an RPO, remaining performance obligations, that exceeds 30 billion. And it's committing to grow its subscription business in the forward-looking statements by 15 to 17% CAGR through 25, which would imply about a doubling of these, the blue lines. Zeus, it's unclear if that forward-looking forecast is just software. I presume it includes some services, but as Herren pointed out, over time, these services will be bundled into the product revenue, same way SAS companies do it. But the point is Cisco is committed, like many of their peers, to moving to an ARR model. But please, share your thoughts on Cisco's move to software subscriptions and how you see the future of consumption-based pricing. >> Yeah, this has been a big shift for Cisco, obviously. It's one that's highly disruptive. It's one that I know gave their partners a lot of angst for a long time because when you sell things upfront, you get a big check for selling that, right? And when you sell things in a subscription model, you get a much smaller check for a number of months over the period of the contract. It also changes the way you deal with the customer. When you sell a one-time product, you basically wipe your hands. You come back in three or four years and say, "it's time to upgrade." When you sell a subscription, now, the one thing that I've tried to talk to Cisco and its partners about is customers don't renew things they don't use. And so it becomes incumbent on the partner, it becomes incumbent upon Cisco to make sure that things that the customer is subscribing to, that they do use. And so Cisco's had to create a customer success organization. They've had to help their partners create those customer success organizations. So it's really changed the model. And Cisco not only made the shift, they've done it faster than they actually had originally forecast. So during the financial analyst day, they actually touted their execution on software, noting that it hit it's 30% revenue as percent of total target well before it was supposed to, it's actually exceeded its targets. And now it's looking to increase that to, it actually raised its guidance in this area a little bit by a few percentage points, looking out over the next few years. And so it's moved to the subscription model, Dave, the thing that you brought up, which I do see as somewhat of a challenge is the shift to consumption-based pricing. So subscription is one thing in that I write you a check every month for the same amount. When I go to the consumption-based pricing, that's easy to do for cloud services, things like WebEx or Duo or, you know, CloudLock, some of the security products. That that shift should be relatively simple. If customers want to buy it that way. It's unclear as to how you do that when you're selling on-prem equipment with the software add-on to it because in that case, you have to put metering technology in to understand how much they're using. You have to have a minimum baseline to start with. They've done it in some respects. The old HCS product that they sold, the Telcos, actually was sold with a minimum commit and then they tacked on a utilization on top of that. So maybe they move into that kind of model. But I know it's something that they've, they get asked about a lot. I know they're still thinking about it, but it's something that I believe is coming and it's going to come pretty fast. >> I want to pick up on that because I think, you know, they made the point that we're one of the top 10 software companies in the world. It's very difficult for hardware companies to make the transition to software. You know, HP couldn't do it. >> Well, no one's done it. >> Well, IBM has kind of done it, but they really struggle. It's kind of this mishmash of tooling and software products that aren't really well-integrated. But, I would say this, everybody now, Cisco, Dell, HPE with GreenLake, Lenovo, pretty much all the traditional hardware players are trying to move to an as a service model or at least for a portion of their business. HPE's all in, Dell transitioning. And for the most part, I would make the following observation. And I'd love to get your thoughts on this. They're pretty much following a SAS like model, which in my view is outdated and kind of flawed from a customer standpoint. All these guys say, "Hey, we're doing this because "this is what the customers want." I think the cloud is really a true consumption based model. And if you look at modern SAS companies, a lot of the startups, they're moving to a consumption based model. You see that with Snowflake, you see that with Stripe. Now they will offer incentives. But most of the traditional enterprise players, they're saying, "Okay, pay us upfront, "commit to some base level. "If you go over it, you know, "we'll charge you for it. "If you go under it, you're still going to pay "for that base level." So it's not true consumption base. It's not really necessarily the customer's best interest. So that's, I think there's some learnings there that are going to have to play out. >> Yeah, the reason customers are shying away from that SAS type model, I think during the pandemic, the one thing we learned, Dave, is that the business will ebb and flow greatly from month to month sometimes. And I was talking with somebody that worked for one of the big hotel chains, and she was telling me that what their CRM providers, she wouldn't tell me who it was, except said it rhymed with Shmalesforce, that their utilization of it went from, you know, from a nice steady level to spiking really high when customers started calling in to cancel hotel rooms. And then it dropped down to almost nothing as we went through that period of stay at home. And now it's risen back up. And so for her, she wanted to move to a consumption-based model because what happens otherwise is you wind up buying for peak utilization, your software subscriptions go largely underutilized the majority of the year, and you wind up paying, you know, a lot more than you need to. If you go to more of a true consumption model, it's harder to model out from a financial perspective 'cause there's a lot of ebbs and flows in the business, but over a longer period of time, it's more cost-effective, right? And so the, again, what the pandemic taught us was we don't really know what we're going to need from a consumption standpoint, you know, nevermind a year from now, maybe even six months from now. And consumption just creates a lot more flexibility and agility. You can scale up, you can scale down. You can bring in users, you can take out users, you can add consultants, things like that. And it just, it's much more aligned with the way businesses are run today. >> Yeah, churn is a silent killer of a software company. And so there's retention is the key here. So again, I think there's lots of learning. Let's put Cisco into context with some of its peers. So this chart we developed compares five companies to Cisco. Core Dell, meaning Dell, without VMware. VMware, HPE, IBM, we've put an AWS, and then Cisco as, IBM, AWS and Cisco is the integrated plays. So the chart shows the latest quarterly revenue multiplied by four to get a run rate, a three-year growth outlook, gross margin percentage, market cap, and revenue multiple. And the key points here are that one, Cisco has got a pretty awesome business model. It's got 60% gross margin, strong operating margins, not shown here, but in the mid twenties, 25%. It's got a higher growth rate than most of its peers. And as such, a much better, multiple than say, for instance, Core Dell gets 33 cents on the revenue dollar. HPE is double that. IBM's below two X. Cisco's revenue multiple rivals VMware, which is a pure software company. Now in a large part that's because VMware stock took a hit recently, but still the point is obvious. Cisco's got a great business. Now for context, we've added AWS, which blows away any company on this chart. We've inferred a market cap of nearly 600 billion, which frankly is conservative at a 10 X revenue multiple given it's inferred margins and growth rate. Now Zeus, if AWS were a separate company, it could have a market cap that approached 800 billion in my view. But what does this data tell you? >> Well, it just tells me that Cisco continues to be a very well-run company that has staved off commoditization, despite the calling for it for years. And I think the big lesson, and I've talked to financial analysts about this over the years, is that if, I don't really believe anything in this world is a commodity, Dave. I think even when Cisco went to the server market, if you remember back then, they created a new way of handling memory management. They were getting well above average margins for service, albeit less than Cisco's network margins, but still above average for server margins. And so I think if you can continue to innovate, you will see the margin stay where they are. You will see customers continue to buy and refresh. And I think one of the challenges Cisco's had in the past, and this is where the subscription business will help, is getting customers to stay with the latest and greatest. Prior to this refresh of network equipment, some of the stuff that I've seen in the fields, 10, 15 years old, once you move to that sell me a box and then tack on the subscription revenue that you pay month by month, you do drive more consistent refresh. Think about the way you just handle your own mobile phone. If you had to go pay, you know, a thousand dollars every three years, you might not do it at that three-year cycle. If you pay 40 bucks a month, every time there's a new phone, you're going to take it, right? So I think Cisco is able to drive greater, better refresh, keep their customers current, keep the features in there. And we've seen that with a lot of the new products. The new Cat 9,000, some of the new service provider products, the new wifi products, they've all done very well. In fact, they've all outpaced their previous generation products as far as growth rate goes. And so I think that is a testament to the way they've run the business. But I do think when people bucket Cisco in with HP and Dell, and I understand why they do, their businesses were similar at one time, it's really not a true comparison anymore. I think Cisco has completely changed their business and they're not trying to commoditize markets, they're trying to drive innovation and keep the margins up, where I think HP and Dell tend to really compete on price versus innovation. >> Well, and we are going to get to this point about the tailwinds and headwinds and cloud, and how Cisco to do it. But, to your point about, you know, the cell phone analogy. To the extent that Cisco can make that seamless for customers could hide that underlying complexity, that's going to be critical for the cloud. Now, but before we get there, I want to talk about one of the reasons why Cisco such a high multiple, and has been able to preserve its margins, to your point, not being commoditized. And it's been able to grow both organically, but also has a strong history of M and A. It's this chart shows a dominant position in core networking. So this shows, so ETR data within the Fortune 500. It plots companies in the ETR taxonomy in two dimensions, net score on the vertical axis, which is a measure of spending velocity, and market share on the horizontal axis, which is a measure of presence in the survey. It's not like IDC market share, it's mentioned market share if you will. The point is Cisco is far and away the most pervasive player in the market, it's generally held its dominant position. Although, it's been under pressure in the last few years in core networking, but it retains or maintains a very respectable net score and consistently performs well for such a large company. Zeus, anything you'd add with respect to Cisco's core networking business? >> Yeah, it's maintained a dominant network position historically. I think part of because it drives good products, but also because the competitive landscape, historically has been pretty weak, right? We saw companies like 3Com and Nortel who aren't around anymore. It'll be interesting to see moving forward now that companies like VMware are involved in networking. AWS is interested in networking. Arista is a much stronger company. You know, Juniper bought Mist and is in better position. Even Extreme Networks who most people thought was dead a few years ago has made a number of acquisitions and is now a billion dollar company. So while Cisco has done a great job of execution, they've done a great job on the innovation side, their competitive landscape, looking out over the next five years, I think is going to be more difficult than it has been over the previous five years. And largely, Dave, I think that's good for Cisco. I think whenever Cisco's pressed a little bit from competition, they tend to step on the innovation gas a little bit more. And I look back and even just the transition when VMware bought Nicira, that got Cisco's SDN business into gear, like nothing else could have, right? So competition for that company, they always seem to respond well to it. >> So, let's break down Cisco's net score a little bit. Explain why the company has been able to hold its spending momentum despite its large size. This will give you a little insight to the survey. So this chart shows the granular components of net score. The lime green is new adoptions to Cisco. The forest green is spending more than 6%. The gray is flat plus or minus 5%. The pink is spending drops by more than 5%. And the red is we're chucking the platform, we're getting off. And Cisco's overall net score here is 25%, which for a company of its size speaks to the relationships that it has with customers. It's of course got a fat middle in the gray area, like all sort of large established companies. But very low defections as well, it's got low new adoptions. But very respectable. So that is background, Zeus. Let's look at spending momentum over time across Cisco's portfolio. So this chart shows Cisco's net score by that methodology within the ETR taxonomy for Cisco over three survey periods. And what jumps out is Meraki on the left, very strong. Virtualization business, its core networking, analytics and security, all showing upward momentum. AppD is a little bit concerning, but that could be related to Cisco's sort of pivot to full stack observability. So maybe AppD is being bundled there. Although some practitioners have cited to us some concerns in that space. And then WebEx at the end of the chart, it's showing some relative strength, but not that high. Zeus, maybe you could comment on Meraki and any other takeaways across the portfolio. >> Yeah, Meraki has proven to be an excellent acquisition for Cisco. In fact, you might, I think it's arguable to say it's its best acquisition in history going all the way back to camp Kalpana and Grand Junction, the ones that brought up catalyst switches. So, in fact, I think Meraki's revenue might be larger than security now. So, that shows you the momentum it has. I think one of the lessons it brought to Cisco was that simpler is better, sometimes. I think when they first bought Meraki, the way Meraki's deployed, it's very easy to set up. There's a lot of engineering work though that goes into making a product simple to use. And I think a lot of Cisco engineers historically looked at Meraki as, that's a little bit of a toy. It's meant for small businesses, things like that, but it's not for enterprise. But, Rocky's done a nice job of expanding the portfolio, of leveraging the cloud for analytics and showing you a lot of things that you wouldn't necessarily get from traditional networking equipment. And one of the things that I was really delighted to see was when they put Todd Nightingale in charge of all the networking business, because that showed to me that Chuck Robbins understood that the things Meraki were doing were right and they infuse a little bit of Meraki into the rest of the company. You know, that's certainly a good thing. The other areas that you showed on the chart, not really a surprise, Dave. When you think of the shift hybrid work and you think of the, some of the other transitions going on, I think you would expect to see the server business in decline, the storage business, you know, maybe in a little bit of decline, just because people aren't building out data centers. Where the other ones are related more to hybrid working, hybrid cloud, things like that. So it is what you would expect. The WebEx one was interesting too, because it did show somewhat of a dip and then a rise. And I think that's indicative of what we've seen in the collaboration space since the pandemic came about. Companies like Zoom and RingCentral really got a lot of the headlines. Again, when you, the comment I made on competition, Cisco got caught a little bit flat-footed, they've caught up in features and now they really stepped on the gas there. Chuck joked that he gave the WebEx team a bit of a blank check to go do what it had to do. And I don't think that was a joke. I think he actually did that because they've added more features into WebEx in the last year then I think they did the previous five years before that. >> Well, let's just drill into video conferencing real quick here, if we could. Here's that two dimensional view, again, showing net score against market share or pervasiveness of mentions, and you can see Microsoft Teams in the upper right. I mean, it's off the chart, literally. Zoom's well ahead of Cisco in terms of, you know, mentions presence. And that could be a spate of freemium, you know, but it's basically a three horse race in this game. And Cisco, I don't think is trying to take Zoom head on, rather it seems to be making WebEx a core part of its broader collaboration agenda. But Zeus, maybe you could comment. >> Well, it's all coming together, right? So, it's hard to decouple calling from video from meetings. All of the vendors, including Teams, are going after the hybrid work experience. And if you believe the future is hybrid and not just work from home, then Cisco does have a pretty interesting advantage because it's the only one that makes its own end points, where Teams and Zoom doesn't. And so that end to end experience it can deliver. The Microsoft Teams one's interesting because that product, frankly, when you talk to users, it doesn't have a great user score, like as far as user satisfaction goes, but the one thing Microsoft has done a very good job of is bundling it in to the Office365 licenses, making it very easy for IT to deploy. Zoom is a little bit in the middle where they've appealed to the users. They've done a better job of appealing to IT, but there is a, there is a battleground now going on where video's not just video. It includes calling, includes meetings, includes room systems now, and I think this hybrid work friend is going to change the way we think about these meeting tools. >> Now we'd be remiss if we didn't spend a moment talking about security as a key part of Cisco's business. And we have a graphic on this same kind of X, Y. And it's been, we've seen several quarters of growth. Although, the last quarter security growth was in the low single digits, but Cisco is a major player in security. And this X, Y graph shows, they've got both a large presence and a solid spending momentum. Not nearly as much momentum as Okta or Zscaler or a CrowdStrike and some of the smaller companies, but they're, these guys are on a rocket ship, but others that we featured in these episodes, but much more than respectable for Cisco. And security is critical to the strategy. It's a big part of the subscriber base. And the last thing, Zeus, I'll say about Cisco made the point in analyst day, that this market is crowded. You can see that in this chart. And their goal is to simplify this picture and make it easier for customers to secure their data and apps. But that's not easy, Zeus. What are your thoughts on Cisco's security opportunities? >> Yeah, I've been waiting for Cisco go to break up in security a little more than it has. I do think, I was talking with a CSO the other day, Dave, that said to me he's starting to understand that you don't have to have best of breed everywhere to have best in class threat protection. In fact, there's a lot of buyers now will tell you that if you try and have best of breed everywhere, it actually creates a negative when it comes to threat protection because keeping all the policies and things up to date is very, very difficult. And so the industry is moving more to a platform model, right? Now, the challenge for Cisco is how do you get that, the customer to think of the network as part of the platform? Because while the platform model, I think, is starting to gain traction, FloridaNet, Palo Alto, even McAfee, companies like that also have their own version of a security platform. And if you look at the financial performance of companies like FloridaNet and Palo Alto over the past, you know, over the past couple of years, they've been through the roof, right? And so I think an interesting and unique challenge for Cisco is can they convince the security buyer that the network is as important a part of that platform as any other component? If they can do that, I think they can break away from the pack. If not, then they'll stay mixed in with those, you know, Palo, FloridaNet, Checkpoint, and, you know, and Cisco, in that mix. But I do think that may present their single biggest needle moving opportunity just because of how big the security TAM is, and the fact that there is no de facto leader in security today. If they could gain the same kind of position in security as they have a networking, who, I mean, that would move the needle like no other market would. >> Yeah, it's really interesting that they're coming at security, obviously from a position of networking strength. You've got, to your point, you've got best of breed, Okta in identity, you got CrowdStrike in endpoint, Zscaler in cloud security. They're all growing like crazy. And you got Cisco and you know, Palo Alto, CSOs tell us they want to work with Palo Alto because they're the thought leader and they're obviously a major player here. You mentioned FloridaNet, there's a zillion others. We could talk all day about security. But let's bring it back to cloud. We've talked about a number of the piece in Cisco's portfolio, and we haven't really spent any time on full stack observability, which is a big push for Cisco with AppD, Intersight and the ThousandEyes acquisition. And that plays into this equation. But my take, Zeus, is Cisco has a number of cloud knobs that it can turn, it sells core networking equipment to hyperscalers. It can be the abstraction layer to connect on-prem to the cloud and hybrid and across clouds. And it's in a good position with Telcos too, to go after the 5G. But let's use this chart to talk about Cisco's cloud prospects. It's an ETR cut of the cloud customer spending. So we cut it by cloud customers. And they're are, I don't know, 800 or so in the survey. And then looking at various companies performance within that cut. So these are companies that compete, or in the case of HashiCorp, partner with Cisco at some level. Let me just set this up and get your take. So the insert on the chart by the way shows the raw data that positions each dot, the net score and the shared n, i.e. the number of accounts in the survey that responded. The key points, first of all, Azure and AWS, dominant players in cloud. GCP is a distant third. We've reported on that a lot. Not only are these two companies big, they have spending momentum on their platforms. They're growing, they are on that flywheel. Second point, VMware and Cisco are very prominent. They have huge customer bases. And while they're often on a collision course, there's lots of room in cloud for multiple players. When we plotted some other Cisco properties like AppD and Meraki, which as we said, is strong. And then for context, we've placed Dell, HPE, Aruba, IBM and Oracle. And also VMware cloud and AWS, which is notable on its elevation. And as I say, we've added HashiCorp because they're critical partner of Cisco and it's a multi-cloud play. Okay, Zeus, there's the setup. What does Cisco have to do to make the cloud a tailwind? Let's talk about strategy, tailwinds, headwinds, competition, and bottom line it for us. >> Yeah, well, I do think, well, I talked about security being the biggest needle mover for Cisco, I think its biggest challenge is convincing Wall Street in particular, that the cloud is a tailwind. I think if you look at the companies with the really high multiples to their stock, Dave, they're all ones where they're viewed as, they go along with the cloud ride, Right? So the, if you can associate yourself with the cloud and then people believe that the cloud is going to, more cloud equals more business, that obviously creates a better multiple because the cloud has almost infinite potential ahead of it. Now with respect to Cisco, I do think cloud has presented somewhat of a double-edged sword for Cisco. I don't believe the current consumption model for cloud is really a tailwind for Cisco, not really a headwind, but it doesn't really change Cisco's business. But I do think the very definition of cloud is changing before our eyes, Dave. And it's shifting away from centralized clouds. If you think of the way customers bought cloud before, it might have used AWS, it might've used Azure, but it really, that's not really multi-cloud, it's just multiple clouds in which I put things in these centralized resources. It's shifting more to this concept of distributed cloud in which a single application can be built using resources from your private cloud, for AWS, from Azure, from Edge locations, all the cloud providers have built their portfolios to support this concept of distributed cloud and what becomes important there, is a highly agile dynamic network. And in that case with distributed cloud, that is a tailwind for Cisco because now the network is that resource that ties all those distributed cloud components together. Now the network itself has to change. It needs to become a lot more agile and microservices and container friendly itself so I can spin up resources and, you know, in an Edge location, as fast as I can on-prem and things like that. But I do think it creates another wave of innovation and networking, and in that case, I think it does act as a tailwind for Cisco, aside from just the work it's done with the web scalers, you know, those types of companies. So, but I do think that Cisco needs to rethink its delivery model on network services somewhat to take advantage of that. >> At the analyst meeting, Cisco made the point that it does sell to the hyperscalers. It talked about the top six hyperscalers. You know, you had mentioned to me, maybe IBM and Oracle were in there. I always talk about four hyperscalers and only four, but that's fine. Here's my question. Practitioners have told me, buyers have told me, the more money and more workloads I put in the cloud, the less I spend with Cisco. Now, even though that might be Cisco gear powering those clouds, do you see that as a potential threat in that they don't own that relationship anymore and value will confer to the cloud players? >> Yeah, that's, I've heard that too. And I don't, I believe that's true when it comes to general purpose compute. You're probably not buying as many UCS servers and things like that because you are putting them in the cloud. But I do think you do need a refresh the network. I think the network becomes a very important role, plays a very important role there. The variant, the really interesting trend will be, what is your WAM look like? Do you have thousands of workers scattered all over the place, or do you just have a few centralized locations? So I think also, you know, Cisco will wind up providing connectivity within the cloud. If you think of the transition we've seen in other industries, Dave, as far as cloud goes, you think of, you know, F5, a company like that. People thought that AWS would commoditize F5's business because AWS provides their own load balancers, right? But what AWS provides is a very basic, very basic functionality and then use F5's virtual edition or a cloud edition for a lot of the advanced capabilities. And I think you'll see the same thing with the cloud that customers will start buying versions of Cisco that go in the cloud to drive a lot of those advanced capabilities that only Cisco delivers. And so I think you wind up buying more Cisco over time, although the per unit price of what you buy might be a little bit lower. If that makes sense here. >> It does, I think it makes a lot of sense and that fits into the cloud model. You know, you bring up a good point, the conversation with the customer was Rakuten. And that individual was essentially sharing with us, somebody was asking, one of the analysts was asking, "Well, what about the cloud guys? "Aren't they going to really threaten the whole Telco "industry and disrupt it?" And his point was, "Look at, this stuff is not trivial." So to your point, you know, maybe they'll provide some basic functionality. Kind of like they do in a lot of different areas. Data protection is another good example. Security is another good example. Where there's plenty of room for partners, competitors, of on-prem players to add value. And I've always said, "Look, the opportunity "is the cloud players spend 100 billion dollars a year "on CapEx." It's a gift to companies like Cisco who can build an abstraction layer that connects on-prem, cloud for hybrid, across clouds, out to the edge, and really be that layer that is that layer that takes advantage of cloud native, but also delivers that experience, I don't want to use the word seamlessly, but that experience across those clouds as the cloud expands. And that's fundamentally Cisco's cloud strategy, isn't it? >> Oh yeah. And I think people have underestimated over the years, how hard it is to build good networking products. Anybody can go get some silicon and build a product to connect two things together. The question is, can you do it at scale? Can you do it securely? And lots of companies have tried to commoditize networking, you know, White Boxes was looked at as the existential threat to Cisco. Huawei was looked at as the big threat to Cisco. And all of those have kind of come and gone because building high quality network equipment that scales is tough. And it's tougher than most people realize. And your other point on the cloud providers as well, they will provide a basic level of functionality. You know, AWS network equipment doesn't work in Azure. And Azure stuff doesn't work in Google, and Google doesn't work in AWS. And so you do need a third party to come in and act as almost the cloud middleware that can connect all those things together with a consistent set of policies. And that's what Cisco does really well. They did that, you know back when they were founded with routing protocols and you can think this is just an extension of what they're doing just up at the cloud layer. >> Excellent. Okay, Zeus, we're going to leave it there. Thanks to my guest today, Zeus Kerravala. Great analysis as always. Would love to have you back. Check out ZKresearch.com to reach him. Thank you again. >> Thank you, Dave. >> Now, remember I publish each week on Wikibond.com and siliconangle.com. All these episodes are available as podcasts, just search "Braking Analysis" podcast, and you can connect on Twitter at DVallante or email me David.Vallante@siliconangle.com. Thanks for the comments on LinkedIn. Check out etr.plus for all the survey action. This is Dave Vallante for theCUBE insights powered by ETR. Be well and we'll see you next time. (light music)

>> From theCUBE studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE in ETR. This is Breaking Analysis with Dave Vellante. >> Every CEO is figuring out the right balance for new hybrid business models. Now, regardless of the chosen approach, which is going to vary, technology executives, they understand they have to accelerate their digital and build resilience as well as optionality into their platforms. Now, this is driving a dramatic shift in IT investments. And at the macro level, we expect total spending to increase at as much as 8% or even more in 2021, compared to last year's contraction. Investments in cybersecurity, cloud collaboration that are enabling hybrid work as well as data, including analytics, AI, and automation are at the top of the spending priorities for CXOs. Hello everyone. And welcome to this week's Wiki Bond Cube insights, powered by ETR. In this Breaking Analysis, we're pleased to welcome back Erik Bradley, who is the chief engagement strategist at our partner, ETR. Now in this segment, we're going to share some of the latest findings from ETR's surveys and provide our commentary on what it means for the markets, for sellers, and for buyers. Erik, great to see you, my friend. Welcome back to Breaking Analysis. >> Thank you for having me, always enjoy it. We've got some fresh data to talk about on this beautiful summer Friday, so I'm ready to go. >> All right. I'm excited too. Okay, last year we saw a contraction in IT spending by at least 5%. And now we're seeing a snapback to, as I said, at least 8% growth relative to last year. You got to go back to 2007 just before the financial crisis to see this type of top line growth. The shift to hybrid work, it's exposed us to new insidious security threats. And we're going to discuss that in a lot more detail. Cloud migration of course picked up dramatically last year, and based on the recent earnings results of the big cloud players, for now we got two quarters of data, that trend continues as organizations are accelerating their digital platform build-outs, and this is bringing a lot of complexity and a greater need for so-called observability solutions, which Erik is going to talk about extensively later on in this segment. Data, we think is entering a new era of de-centralization. We see organizations not only focused on analytics and insights, but actually creating data products. Leading technology organizations like JP Morgan, they're heavily leaning into this trend toward packaging and monetizing data products. And finally, as part of the digital transformation trend, we see no slow down in spending momentum for AI and automation, generally in RPA specifically. Erik, anything you want to add to that top level narrative? >> Yeah, there's a lot to take on the macro takeaways. The first thing I want to state is that that 8, 8.5% number that started off at just 3 to 4% beginning of the year. So as the year has continued, we are just seeing this trend in budgets continue to accelerate, and we don't have any reason to believe that's going to stop. So I think we're going to just keep moving on heading into 2021. And we're going to see a banner year of spend this year and probably next as well. >> All right, now we're going to bring up a chart that shows kind of that progression here of spending momentum. So Erik, I'm going to let you comment on this chart that tracks those projections over time. >> Erik: Yeah. Great. So thank you very much for pulling this up. As you can see in the beginning part of the year, when we asked people, "What do you plan to spend throughout 2021?" They were saying it would be about a 4% increase. Which we were happy with because as you said last year, it was all negative. That continues to accelerate and is only hyper accelerating now as we head into the back half of the year. In addition, after we do this data, I always host a panel of IT end users to kind of get their feedback on what we collected, to a man, every one of them expects continued increase throughout next year. There are some concerns and uncertainty about what we're seeing right now with COVID, but even with that, they're planning their budgets now for 2022 and they're planning for even further increases going forward. >> Dave: Great, thank you. So we circled that 8%. That's really kind of where we thought it was going to land. And so we're happy with that number, but let's take a look at where the action is by technology sector. This chart that we're showing you here, it tracks spending priorities back to last September. When I believe that was the point, Erik, that cyber became the top priority in the survey, ahead of cloud collaboration, analytics, and data, and the other sectors that you see there. Now, Erik, we should explain. These areas, they're the top seven, and they outrank all the other sectors. ETR tracks many, many other sectors, but please weigh in here and share your thoughts on this data. >> Erik: Yeah. Security, security, security. It hasn't changed. It had really hasn't. The hybrid work. The fact that you're behind the firewall one day and then you're outside working from home the next, switching in and out of networks. This is just a field day for bad actors. And we have no choice right now, but to continue to spend, because as you're going to talk about in a minute, hybrid's here to stay. So we have to figure out a way to secure behind the firewall on-prem. We also have to secure our employees and our assets that are not in the office. So it is a main priority. One of the things that point out on this chart, I had a couple of ITN users talk to me about customer experience and automation really need to move from the right part of that chart to the left. So they're seeing more in what you were talking about in RPA and automation, starting to creep up heading into next year. As cloud migration matures, as you know, cybersecurity spending has been ramping up. People are going to see a little bit more on the analytics and a little bit more on the automation side going forward. >> Dave: Great. Now, this next data view- well, first of all, one of the great things about the ETR dataset is that you can ask key questions and get a time series. And I will tell you again, I go back to last March, ETR hit it. They were the first on the work from home trend. And so if you were on that trend, you were able to anticipate it. And a lot of investors I think took advantage of that. Now, but we've shown this before, but there's new data points that we want to introduce. So the data tracks how CIOs and IT buyers have responded to the pandemic since last March. Still 70% of the organizations have employees working remotely, but 39% now have employees fully returning to the office and Erik, the rest of the metrics all point toward positives for IT spending, although accelerating IT deployments there at the right peaked last year, as people realized they had to invest in the future. Your thoughts? >> Erik: Yeah, this is the slide for optimism, without a doubt. Of the entire macro survey we did, this is the most optimistic slide. It's great for overall business. It's great for business travel. This is well beyond just IT. Hiring is up. I've had some people tell me that they possibly can't hire enough people right now. They had to furlough employees, they had to stop projects, and they want to re accelerate those now. But talent is very hard to find. Another point to you about your automation and RPA, another underlying trend for there. The one thing I did want to talk about here is the hybrid workplace, but I believe there's another slide on it. So just to recap on this extremely optimistic, we're seeing a lot of hiring. We're seeing increased spending, and I do believe that that's going to continue. >> Yeah I'm glad you brought that up because a session that you and I did a while ago, we pointed out, it was earlier this year, that the skill shortage is one potential risk to our positive scenario. We'll keep an eye on that, but so I want to show another set of data that we've showed previously, but ETR again, has added some new questions in here. So note here that 60% of employees still work remotely with 33% in a hybrid model currently, and the CIO's expect that to land on about 42% hybrid workforce with around 30% working remotely, which is around, it's been consistent by the way on your surveys, but that's about double the historic norm, Eric. >> Erik: Yeah, and even further to your point Dave, recently I did a panel asking people to give me some feedback on this. And three of those four experts basically said to me, if we had greed run this survey right now, that even more people would be saying remote. That they believe that that number, that's saying they're expecting that number of people to be back in office, is actually too optimistic. They're actually saying that maybe if we had- cause as a survey launched about six, seven weeks ago before this little blip on the radar, before the little COVID hiccup we're seeing now, and they're telling me that they believe if we reran this now that it would be even more remote work, even more hybrid and less returned to the office. So that's just an update I wanted to offer on this slide. >> Dave: Yeah. Thank you for that. I mean, we're still in this kind of day to day, week to week, month to month mode, but I want to do a little double click on this. We're not going to share this data, but there was so much ETR data. We got to be selective. But if you double click on the hybrid models, you'll see that 50% of organizations plan to have time roughly equally split between onsite and remote with again around 30 or 31% mostly remote, with onsite space available if they need it. And Erik, very few don't plan to have some type of hybrid model, at least. >> Yeah, I think it was less than 10% that said it was going to be exclusively onsite. And again, that was a more optimistic scenario six, seven weeks ago than we're seeing right now throughout the country. So I agree with you, hybrid is here to stay. There really is no doubt about it. from everyone I speak to when, you know, I basically make a living talking to IT end users. Hybrid is here to stay. They're planning for it. And that's really the drive behind the spending because you have to support both. You have to give people the option. You have to, from an IT perspective, you also have to support both, right? So if somebody is in office, I need the support staff to be in office. Plus I need them to be able to remote in and fix something from home. So they're spending on both fronts right now. >> Okay. Let's get into some of the vendor performance data. And I want to start with the cloud hyperscalers. It's something that we followed pretty closely. I got some Wiki bond data, that we just had earnings released. So here's data that shows the Q2 revenue shares on the left-hand side in the pie and the growth rates for the big four cloud players on the right hand side. It goes back to Q1 2019. Now the first thing I want to say is these players generated just under $39 billion in the quarter with AWS capturing 50% of that number. I said 39, it was 29 billion, sorry, with AWS capturing 50% of that in the quarter. As you're still tracking around a third in Alibaba and GCP in the, you know, eight or 9% range. But what's most interesting to me, Erik, is that AWS, which generated almost 15 billion in the quarter, was the only player to grow its revenue, both sequentially and year over year. And Erik, I think the street is missing the real story here on Amazon. Amazon announced earnings on Thursday night. The company had a 2% miss on the top line revenues and a meaningful 22% beat on earnings per share. So the retail side of the business missed its revenue targets, so that's why everybody's freaked out. But AWS, the cloud side, saw a 4% revenue beat. So the stock was off more than 70% after hours and into Friday. Now to me, a mix shift toward AWS, that's great news for investors. Now, tepid guidance is a negative, but the shift to a more profitable cloud business is a huge positive. >> Yeah, there's a lot that goes into stock price, right? I remember I was a director of research back in the day. One of my analysts said to me, "Am I crazy for putting a $1,000 target on Amazon?" And I laughed and I said, "No, you're crazy if you don't make it $2,000." (both chuckling) So, you know, at that time it was basically the mix shift towards AWS. You're a thousand percent right. I think the tough year over year comps had something to do with that reaction. That, you know, it's just getting really hard. What's that? The law of large numbers, right? It's really hard to grow at that percentage rate when you're getting this big. But from our data perspective, we're seeing no slowdown in AWS, in cloud, none whatsoever. The only slowdown we're seeing in cloud is GCP. But to, you know, to focus on AWS, extremely strong across the board and not only just in cloud, but in all their data products as well, data and analytics. >> Yeah and I think that the AWS, don't forget folks, that funds Amazon's TAM expansion into so many different places. Okay. As we said at the top, the world of digital and hybrid work, and multi-cloud, it's more complicated than it used to be. And that means if you need to resolve issues, which everybody does, like poor application performance, et cetera, what's happening at the user level, you have to have a better way to sort of see what's going on. And that's what the emergence of the observability space is all about. So Erik, let me set this up and you have a lot of comments here because you've recently had some, and you always have had a lot of round table discussions with CXOs on this topic. So this chart plots net score or spending momentum on the vertical axis, and market share or pervasiveness in the dataset on the horizontal axis. And we inserted a table that shows the data points in detail. Now that red dotted line is just sort of Dave Vellante's subjective mark in the sand for elevated spending levels. And there are three other points here. One is Splunk as well off is two-year peak, as highlighted in the red, but Signal FX, which Splunk acquired, has made a big move northward this last quarter. As has Datadog. So Erik, what can you share with us on this hot, but increasingly crowded space? >> Yeah. I could talk about the space for a long time. As you know, I've gotten some flack over the last year and a half about, you know, kind of pointing out this trend, this negative trend in Splunk. So I do want to be the first one to say that this data set is rebounding. Splunk has been horrific in our data for going back almost two years now, straight downward trend. This is the first time we're seeing any increase, any positivity there. So I do want to be fair and state that because I've been accused of being a little too negative on Splunk in the past. But I would basically say for observability right now, it's a rising tide lifts all boats, if I can use a New England phrase. The data across the board in analytics for these observability players is up, is accelerating. None more so than Datadog. And it's exactly your point, David. The complexity, the increased cloud migration is a perfect setup for Datadog, which is a cloud native. It focuses on microservices. It focuses on cloud observability. Old Splunk was just application monitoring. Don't get me wrong, they're changing, but they were on-prem application monitoring, first and foremost. Datadog came out as cloud native. They, you know, do microservices. This is just a perfect setup for them. And not only is Datadog leading the observability, it's leading the entire analytics sector, all of it. Not just the observability niche. So without a doubt, that is the strongest that we're seeing. It's leading Dynatrace new Relic. The only one that really isn't rebounding is Cisco App Dynamics. That's getting the dreaded legacy word really attached to it. But this space is really on fire, elastic as well, really doing well in this space. New Relic has shown a little bit of improvement as well. And what I heard when I asked my panelists about this, is that because of the maturity of cloud migration, that this observability has to grow. Spending on this has to happen. So they all say the chart looks right. And it's really just about the digital transformation maturity. So that's largely what they think is happening here. And they don't really see it getting, you know, changing anytime soon. >> Yeah, and I would add, and you see that it's getting crowded. You saw a service now acquired LightStep, and they want to get into the game. You mentioned, you know, last deck of the elk stack is, you know, the open source alternative, but then we see a company who's raised a fair amount of money, startup, chaos search, coming in, going after kind of the complexity of the elk stack. You've got honeycomb, which has got a really innovative approach, Jeremy Burton's company observes. So you have venture capital coming in. So we'll see if those guys could be disruptive enough or are they, you know, candidates to get acquired? We'll see how that all- you know that well. The M and A space. You think this space is ripe for M and A? >> I think it's ripe for consolidation, M and A. Something has to shake out. There's no doubt. I do believe that all of these can be standalone. So we shall see what's happened to, you mentioned the Splunk acquisition of Signal FX, just a house cleaning point. That was really nice acceleration by Signal FX, but it was only 20 citations. We'd looked into this a little bit deeper. Our data scientists did. It appears as if the majority of people are just signaling spunk and not FX separately. So moving forward for our data set, we're going to combine those two, so we don't have those anomalies going forward. But that type of acquisition does show what we should expect to see more of in this group going forward. >> Well that's I want to mention. That's one of the challenges that any data company has, and you guys do a great job of it. You're constantly having to reevaluate. There's so much M and A going on in the industry. You've got to pick the right spots in terms of when to consolidate. There's some big, you know, Dell and EMC, for example. You know, you've beautifully worked through that transition. You're seeing, you know, open shift and red hat with IBM. You just got to be flexible. And that's where it's valuable to be able to have a pipeline to guys like Erik, to sort of squint through that. So thank you for that clarification. >> Thank you too, because having a resource like you with industry knowledge really helps us navigate some of those as well for everyone out there. So that's a lot to do with you do Dave, >> Thank you. It's going to be interesting to watch Splunk. Doug Merritt's made some, you know, management changes, not the least of which is bringing in Teresa Carlson to run go to market. So if you know, I'd be interested if they are hitting, bouncing off the bottom and rising up again. They have a great customer base. Okay. Let's look at some of the same dimensions. Go ahead. You got a comment? >> A few of ETR's clients looked at our data and then put a billion dollar investment into it too. So obviously I agree. (Dave laughing) Splunk is looking like it's set for a rebound, and it's definitely something to watch, I agree. >> Not to rat hole in this, but I got to say. When I look back, cause theCUBE gives us kind of early visibility. So companies with momentum and you talk to the customers that all these shows that we go to. I will tell you that three companies stood out last decade. It was Splunk. It was Service Now and Tableau. And you could tell just from just discussions with their customers, the enthusiasm in that customer base. And so that's a real asset, and that helps them build them a moat. So we'll see. All right, let's take a look at the same dimensions now for cyber. This is cybersecurity net score in the vertical, and market share in the horizontal. And I filtered by in greater than a hundred shared in because just gets so crowded. Erik, the only things I would point out here is CrowdStrike and Zscaler continue to shine, CyberArk also showing momentum over that 40% line. Very impressively, Palo Alto networks, which has a big presence in the market. They've bounced back. We predicted that a while back. Your round table suggested people like working with Palo Alto. They're a gold standard. You know, we had reported earlier on that divergence with four to net in terms of valuation and some of the challenges they had in cloud, clearly, you know, back with the momentum. And of course, Microsoft in the upper, right. It's just, they're literally off the charts and obviously a major player here, but your thoughts on cyber? >> Erik: Yeah. Going back to the backdrop. Security, security, security. It has been the number one priority going back to last September. No one sees it changing. It has to happen. The threat vectors are actually expanding and we have no choice but to spend here. So it is not surprising to see. You did name our three favorite names. So as you know, we look at the dataset, we see which ones have the most positive inflections, and we put outlooks on those. And you did mention Zscaler, Okta and CrowdStrike, by far the three standouts that we're seeing. I just recently did a huge panel on Okta talking about their acquisition of Auth Zero. They're pushed into Sale Point space, trying to move just from single sign on and MFA to going to really privileged account management. There is some hurdles there. Really Okta's ability to do this on-prem is something that a little bit of the IT end users are concerned about. But what we're seeing right now, both Okta and Auth Zero are two of the main adopted names in security. They look incredibly well set up. Zscaler as well. With the ZTNA push more towards zero trust, Zscaler came out so hot in their IPO. And everyone was wondering if it was going to trail off just like Snowflake. It's not trailing off. This thing just keeps going up into the right, up into the right. The data supports a lot of tremendous growth for the three names that you just mentioned. >> Yeah. Yeah. I'm glad you brought up Auth Zero. We had reported on that earlier. I just feel like that was a great acquisition. You had Okta doing the belly to belly enterprise, you know, selling. And the one thing that they really lacked was that developer momentum. And that's what Auth Zero brings. Just a smart move by Todd McKinnon and company. And I mean, so this, you know, I want to, I want to pull up another chart show a quick snapshot of some of the players in the survey who show momentum and have you comment on this. We haven't mentioned Snowflake so far, but they remain again with like this gold standard of net score, they've consistently had those high marks with regard to spending velocity. But here's some other data. Erik, how should we interpret this? >> Erik: Yeah, just to harp on Snowflake for a second. Right, I mean the rich get richer. They came out- IPO was so hyped, so it was hard for us as a research company to say, "Oh, you know, well, you know, we agree." But we did. The data is incredible. You can't beat the management team. You can't beat what they're doing. They've got so much cash. I can't wait to see what they do with it. And meanwhile, you would expect something that debuted with that high of a net score, that high of spending velocity to trail off. It would be natural. It's not Dave, it's still accelerating. It's gone even higher. It's at all time highs. And we just don't see it stopping anytime soon. It's a really interesting space right now. Maybe another name to look at on here that I think is pretty interesting, kind of a play on return to business is Kupa. It's a great project expense management tool that got hit really hard. Listen, traveling stopped, business expense stopped, and I did a panel on it. And a lot of our guys basically said, "Yeah, it was the first thing I cut." But we're seeing a huge rebound in spending there in that space. So that's a name that I think might be worth being called out on a positive side. Negative, If you look down to the bottom right of that chart, unfortunately we're seeing some issues in RingCentral and Zoom. Anything that's sort of playing in this next, you know, video conferencing, IP telephony space, they seem to be having really decelerating spending. Also now with Zoom's acquisition of five nine. I'm not really sure how RingCentral's going to compete on that. But yeah, that's one where we debuted for the first time with a negative outlook on that name. And looking and asking to some of the people in our community, a lot of them say externally, you still need IP telepany, but internally you don't. Because the You Cast communication systems are getting so sophisticated, that if I have Teams, if I have Slack, I don't need phones anymore. (chuckling) That you and I can just do a Slack call. We can do a Teams call. And many of them are saying I'm truly ripping out my IP Telepany internally as soon as possible because we just don't need it. So this whole collaboration, productivity space is here to stay. And it's got wide ranging implications to some of these more legacy type of tools. >> You know, one of the other things I'd call out on this chart is Accenture. You and I had a session earlier this year, and we had predicted that that skill shortage was going to lead to an uptick in traditional services. We've certainly seen that. I mean, IBM beat its quarter on the strength of services largely. And seeing Accenture on that is I think confirmation. >> Yeah that was our New Year prediction show, right Dave? When we made top 10 predictions? >> That's right. That was part of our predictions show. Exactly, good memory. >> The data is really showing that continue. People want the projects, they need to do the projects, but hiring is very difficult. So obviously the number one beneficiary there are going to be the Accentures of the world. >> All right. So let's do a quick wrap. I'm going to make a few comments and then have you bring us home, Erik. So we laid out our scenario for the tech spending rebound. We definitely believe last year tracked downward, along with GDP contraction. It was interesting. Gardner doesn't believe, at least factions of Gardner don't believe there's a correlation between GDP and tech spending. But, you know, I personally think there generally is some kind of relatively proportional pattern there. And I think we saw contraction last year. People are concerned about inflation. Of course, that adds some uncertainty. And as well, as you mentioned around the Delta variant. But I feel as though that the boards of directors and CEOs, they've mandated that tech execs have to build out digital platforms for the future. They're data centric. They're highly automated, to your earlier points. They're intelligent with AI infused, and that's going to take investment. I feel like the tech community has said, "Look, we know what to do here. We're dealing with hybrid work. We can't just stop doing what we're doing. Let's move forward." You know, and as you say, we're flying again and so forth. You know, getting hybrid right is a major priority that directly impacts strategies. Technology strategies, particularly around security, cloud, the productivity of remote workers with collaboration. And as we've said many times, we are entering a new era of data that's going to focus on decentralized data, building data products, and Erik let's keep an eye on this observability space. Lot of interest there, and buyers have a number of choices. You know, do they go with a specialist, as we saw recently, we've seen in the past, or did they go with the generalist like Service Now with the acquisition of LightStep? You know, it's going to be interesting. A lot of people are going to get into this space, start bundling into larger platforms. And so as you said, there's probably not enough room for all the players. We're going to see some consolidation there. But anyway, let me give you the final word here. >> Yeah, no, I completely agree with all of it. And I think your earlier points are spot on, that analytics and automation are certainly going to be moving more and more to that left of that chart we had of priorities. I think as we continue that survey heading into 2022, we'll have some fresh data for you again in a few months, that's going to start looking at 2022 priorities and overall spend. And the one other area that I keep hearing about over and over and over again is customer experience. There's a transition from good old CRM to CXM. Right now, everything is digital. It is not going away. So you need an omni-channel support to not only track your customer experience, but improve it. Make sure there's a two way communication. And it's a really interesting space. Salesforce is going to migrate into it. We've got Qualtrics out there. You've got Medallia. You've got FreshWorks, you've got Sprinkler. You got some names out there. And everyone I keep talking to on the IT end user side keeps bringing up customer experience. So let's keep an eye on that as well. >> That's a great point. And again, it brings me back to Service Now. We wrote a piece last week that's sort of, Service Now and Salesforce are on a collision course. We've said that for many, many years. And you've got this platform of platforms. They're just kind of sucking in different functions saying, "Hey, we're friends with everybody." But as you know Erik, software companies, they want to own it all. (both chuckling) All right. Hey Erik, thank you so much. I want to thank you for coming back on. It's always a pleasure to have you on Breaking Analysis. Great to see you. >> Love the partnership. Love the collaboration. Let's go enjoy this summer Friday. >> All right. Let's do. Okay, remember everybody, these episodes, they're all available as podcasts, wherever you listen. All you got to do is search Breaking Analysis Podcast, click subscribe to the series. Check out ETR's website at etr.plus. They've just launched a new website. They've got a whole new pricing model. It's great to see that innovation going on. Now remember we also publish a full report every week on WikiBond.com and SiliconAngle.com. You can always email me, appreciate the back channel comments, the metadata insights. David.Vellante@SiliconAngle.com. DM me on Twitter @DVellante or comment on the LinkedIn posts. This is Dave Vellante for Erik Bradley and theCUBE insights powered by ETR. Have a great week, a good rest of summer, be well. And we'll see you next time. (inspiring music)

>> Voice Over: Data is at the heart of transformation, and the change every company needs to succeed. But it takes more than new technology. It's about teams, talent and cultural change. Empowering everyone on the front lines to make decisions, all at the speed of digital. The transformation starts with you, it's time to lead the way, it's time for thought leaders. (soft upbeat music) >> Welcome to Thought.Leaders a digital event brought to you by ThoughtSpot, my name is Dave Vellante. The purpose of this day is to bring industry leaders and experts together to really try and understand the important issues around digital transformation. We have an amazing lineup of speakers, and our goal is to provide you with some best practices that you can bring back and apply to your organization. Look, data is plentiful, but insights are not, ThoughtSpot is disrupting analytics, by using search and machine intelligence to simplify data analysis and really empower anyone with fast access to relevant data. But in the last 150 days, we've had more questions than answers. Creating an organization that puts data and insights at their core, requires not only modern technology but leadership, a mindset and a culture, that people often refer to as data-driven. What does that mean? How can we equip our teams with data and fast access to quality information that can turn insights into action? And today we're going to hear from experienced leaders who are transforming their organizations with data, insights, and creating digital first cultures. But before we introduce our speakers, I'm joined today by two of my co-hosts from ThoughtSpot. First, chief data strategy officer of the ThoughtSpot is Cindi Howson, Cindi is an analytics and BI expert with 20 plus years experience, and the author of Successful Business Intelligence: Unlock the Value of BI & Big Data. Cindi was previously the lead analyst at Gartner for the data and analytics Magic Quadrant. In early last year, she joined ThoughtSpot to help CEOs and their teams understand how best to leverage analytics and AI for digital transformation. Cindi great to see you, welcome to the show. >> Thank you Dave, nice to join you virtually. >> Now our second cohost and friend of theCUBE is ThoughtSpot CEO Sudheesh Nair Hello Sudheesh, how are you doing today? >> I'm well, good to talk to you again. >> That's great to see you, thanks so much for being here. Now Sudheesh, please share with us why this discussion is so important to your customers and of course to our audience, and what they're going to learn today. (upbeat music) >> Thanks Dave, I wish you were there to introduce me into every room that I walk into because you have such an amazing way of doing it. It makes me feel also good. Look, since we have all been you know, cooped up in our homes, I know that the vendors like us, we have amped up our sort of effort to reach out to you with, invites for events like this. So we are getting very more invites for events like this than ever before. So when we started planning for this, we had three clear goals that we wanted to accomplish. And our first one, that when you finish this and walk away, we want to make sure that you don't feel like it was a waste of time, we want to make sure that we value your time, then this is going to be used. Number two, we want to put you in touch with industry leaders and thought leaders, generally good people, that you want to hang around with long after this event is over. And number three, as we plan through this, you know we are living through these difficult times we want this event to be more of an uplifting and inspiring event too. Now, the challenge is how do you do that with the team being change agents, because teens and as much as we romanticize it, it is not one of those uplifting things that everyone wants to do or likes to do. The way I think of it, changes sort of like, if you've ever done bungee jumping, and it's like standing on the edges, waiting to make that one more step you know, all you have to do is take that one step and gravity will do the rest, but that is the hardest step today. Change requires a lot of courage, and when we are talking about data and analytics, which is already like such a hard topic not necessarily an uplifting and positive conversation most businesses, it is somewhat scary, change becomes all the more difficult. Ultimately change requires courage, courage to first of all, challenge the status quo. People sometimes are afraid to challenge the status quo because they are thinking that you know, maybe I don't have the power to make the change that the company needs, sometimes they feel like I don't have the skills, sometimes they may feel that I'm probably not the right person to do it. Or sometimes the lack of courage manifest itself as the inability to sort of break the silos that are formed within the organizations when it comes to data and insights that you talked about. You know, that are people in the company who are going to have the data because they know how to manage the data, how to inquire and extract, they know how to speak data, they have the skills to do that. But they are not the group of people who have sort of the knowledge, the experience of the business to ask the right questions off the data. So there is the silo of people with the answers, and there is a silo of people with the questions, and there is gap, this sort of silos are standing in the way of making that necessary change that we all know the business needs. And the last change to sort of bring an external force sometimes. It could be a tool, it could be a platform, it could be a person, it could be a process but sometimes no matter how big the company is or how small the company is you may need to bring some external stimuli to start the domino of the positive changes that are necessary. The group of people that we are brought in, the four people, including Cindi that you will hear from today are really good at practically telling you how to make that step, how to step off that edge, how to dress the rope, that you will be safe and you're going to have fun, you will have that exhilarating feeling of jumping for a bungee jump, all four of them are exceptional, but my owner is to introduce Michelle. And she's our first speaker, Michelle I am very happy after watching our presentation and reading your bio that there are no country vital worldwide competition for cool parents, because she will beat all of us. Because when her children were small, they were probably into Harry Potter and Disney and she was managing a business and leading change there. And then as her kids grew up and got to that age where they like football and NFL, guess what? She's the CIO of NFL, what a cool mom. I am extremely excited to see what she's going to talk about. I've seen this slides, a bunch of amazing pictures, I'm looking to see the context behind it, I'm very thrilled to make that client so far, Michelle, I'm looking forward to her talk next. Welcome Michelle, it's over to you. (soft upbeat music) >> I'm delighted to be with you all today to talk about thought leadership. And I'm so excited that you asked me to join you because today I get to be a quarterback. I always wanted to be one, and I thought this is about as close as I'm ever going to get. So I want to talk to you about quarterbacking our digital revolution using insights data, and of course as you said, leadership. First a little bit about myself, a little background as I said, I always wanted to play football, and this is something that I wanted to do since I was a child, but when I grew up, girls didn't get to play football. I'm so happy that that's changing and girls are now doing all kinds of things that they didn't get to do before. Just this past weekend on an NFL field, we had a female coach on two sidelines, and a female official on the field. I'm a lifelong fan and student of the game of football, I grew up in the South, you can tell from the accent and in the South is like a religion and you pick sides. I chose Auburn University working in the Athletic Department, so I'm testament to you can start the journey can be long it took me many, many years to make it into professional sports. I graduated in 1987 and my little brother, well, not actually not so little, he played offensive line for the Alabama Crimson Tide. And for those of you who know SEC football you know, this is a really big rivalry. And when you choose sides, your family is divided, so it's kind of fun for me to always tell the story that my dad knew his kid would make it to the NFL he just bet on the wrong one. My career has been about bringing people together for memorable moments at some of America's most iconic brands. Delivering memories and amazing experiences that delight from Universal Studios, Disney to my current position as CIO of the NFL. In this job I'm very privileged to have the opportunity to work with the team, that gets to bring America's game to millions of people around the world. Often I'm asked to talk about how to create amazing experiences for fans, guests, or customers. But today I really wanted to focus on something different and talk to you about being behind the scenes and backstage. Because behind every event every game, every awesome moment is execution, precise repeatable execution. And most of my career has been behind the scenes, doing just that, assembling teams to execute these plans, and the key way that companies operate at these exceptional levels, is making good decisions, the right decisions at the right time and based upon data, so that you can translate the data into intelligence and be a data-driven culture. Using data and intelligence is an important way that world-class companies do differentiate themselves. And it's the lifeblood of collaboration and innovation. Teams that are working on delivering these kinds of world-class experiences are often seeking out and leveraging next generation technologies and finding new ways to work. I've been fortunate to work across three decades of emerging experiences, which each required emerging technologies to execute. A little bit first about Disney, in the 90s I was at Disney, leading a project called destination Disney, which it's a data project, it was a data project, but it was CRM before CRM was even cool. And then certainly before anything like a data-driven culture was ever brought up. But way back then we were creating a digital backbone that enabled many technologies for the things that you see today, like the magic band, just these magical express. My career at Disney began in finance, but Disney was very good about rotating you around, and it was during one of these rotations that I became very passionate about data. I kind of became a pain in the butt to the IT team, asking for data more and more data. And I learned that all of that valuable data was locked up in our systems, all of our point of sales systems, our reservation systems, our operation systems, and so I became a shadow IT person in marketing, ultimately leading to moving into IT, and I haven't looked back since. In the early 2000s I was at Universal Studios Theme Park as their CIO, preparing for and launching the wizarding world of Harry Potter. Bringing one of history's most memorable characters to life required many new technologies and a lot of data. Our data and technologies were embedded into the rides and attractions. I mean, how do you really think a wand selects you at a wine shop. As today at the NFL, I am constantly challenged to do leading edge technologies using things like sensors, AI, machine learning, and all new communication strategies, and using data to drive everything from player performance, contracts to where we build new stadiums and hold events. With this year being the most challenging, yet rewarding year in my career at the NFL. In the middle of a global pandemic, the way we are executing on our season is leveraging data from contract tracing devices joined with testing data. Talk about data, actually enabling your business without it we wouldn't be having a season right now. I'm also on the board of directors of two public companies, where data and collaboration are paramount. First RingCentral, it's a cloud based unified communications platform, and collaboration with video message and phone, all in one solution in the cloud. And Quotient Technologies, whose product is actually data. The tagline at quotient is the result in knowing. I think that's really important, because not all of us are data companies, where your product is actually data. But we should operate more like your product is data. I'd also like to talk to you about four areas of things to think about, as thought leaders in your companies. First just hit on it is change, how to be a champion and a driver of change. Second, how to use data to drive performance for your company, and measure performance of your company. Third, how companies now require intense collaboration to operate, and finally, how much of this is accomplished through solid data-driven decisions. First let's hit on change. I mean, it's evident today more than ever, that we are in an environment of extreme change. I mean, we've all been at this for years and as technologists we've known it, believed it, lived it, and thankfully for the most part knock on wood we were prepared for it. But this year everyone's cheese was moved, all the people in the back rooms, IT, data architects and others, were suddenly called to the forefront. Because a global pandemic has turned out to be the thing that is driving intense change in how people work and analyze their business. On March 13th, we closed our office at the NFL in the middle of preparing for one of our biggest events, our kickoff event, the 2020 Draft. We went from planning, a large event in Las Vegas under the bright lights red carpet stage to smaller events in club facilities. And then ultimately to one where everyone coaches, GMs, prospects and even our commissioner were at home in their basements. And we only had a few weeks to figure it out. I found myself for the first time being in the live broadcast event space, talking about bungee dress jumping, this is really what it felt like. It was one in which no one felt comfortable, because it had not been done before. But leading through this, I stepped up, but it was very scary, it was certainly very risky but it ended up being Oh, so rewarding when we did it. And as a result of this, some things will change forever. Second, managing performance. I mean, data should inform how you're doing and how to get your company to perform at this level, highest level. As an example, the NFL has always measured performance obviously, and it is one of the purest examples of how performance directly impacts outcome. I mean, you can see performance on the field, you can see points being scored and stats, and you immediately know that impact, those with the best stats, usually win the games. The NFL has always recorded stats, since the beginning of time, here at the NFL a little this year as our 100 and first year and athletes ultimate success as a player has also always been greatly impacted by his stats. But what has changed for us, is both how much more we can measure, and the immediacy with which it can be measured. And I'm sure in your business, it's the same, the amount of data you must have has got to have quadrupled recently and how fast you need it and how quickly you need to analyze it, is so important. And it's very important to break the silos between the keys to the data and the use of the data. Our next generation stats platform is taking data to a next level, it's powered by Amazon Web Services, and we gathered this data real time from sensors that are on players' bodies. We gather it in real time, analyze it, display it online and on broadcast, and of course it's used to prepare week to week in addition to what is a normal coaching plan would be. We can now analyze, visualize, route patterns speed, matchups, et cetera, so much faster than ever before. We're continuing to roll out sensors too, that we'll gather more and more information about player's performance as it relates to their health and safety. The third trend is really I think it's a big part of what we're feeling today and that is intense collaboration. And just for sort of historical purposes it's important to think about for those of you that are IT professionals and developers, you know more than 10 years ago, agile practices began sweeping companies or small teams would work together rapidly in a very flexible, adaptive and innovative way, and it proved to be transformational. However today, of course, that is no longer just small teams the next big wave of change, and we've seen it through this pandemic is that it's the whole enterprise that must collaborate and be agile. If I look back on my career when I was at Disney, we owned everything 100%, we made a decision, we implemented it, we were a collaborative culture but it was much easier to push change because you own the whole decision. If there was buy in from the top down, you got the people from the bottom up to do it, and you executed. At Universal, we were a joint venture, our attractions and entertainment was licensed, our hotels were owned and managed by other third parties. So influence and collaboration and how to share across companies became very important. And now here I am at the NFL and even the bigger ecosystem. We have 32 clubs that are all separate businesses 31 different stadiums that are owned by a variety of people. We have licensees, we have sponsors, we have broadcast partners. So it seems that as my career has evolved centralized control has gotten less and less and has been replaced by intense collaboration not only within your own company, but across companies. The ability to work in a collaborative way across businesses and even other companies that has been a big key to my success in my career. I believe this whole vertical integration and big top down decision making is going by the wayside in favor of ecosystems that require cooperation, yet competition to coexist. I mean the NFL is a great example of what we call coopertition, which is cooperation and competition. When in competition with each other, but we cooperate to make the company the best it can be. And at the heart of these items really are data-driven decisions and culture. Data on its own isn't good enough, you must be able to turn it to insights, partnerships between technology teams who usually hold the keys to the raw data, and business units who have the knowledge to build the right decision models is key. If you're not already involved in this linkage, you should be, data mining isn't new for sure. The availability of data is quadrupling and it's everywhere. How do you know what to even look at? How do you know where to begin? How do you know what questions to ask? It's by using the tools that are available for visualization and analytics and knitting together strategies of the company. So it begins with first of all making sure you do understand the strategy of the company. So in closing, just to wrap up a bit, many of you joined today looking for thought leadership on how to be a change agent, a change champion, and how to lead through transformation. Some final thoughts are be brave, and drive, don't do the ride along program, it's very important to drive, driving can be high risk but it's also high reward. Embracing the uncertainty of what will happen, is how you become brave, get more and more comfortable with uncertainty be calm and let data be your map on your journey, thanks. >> Michelle, thank you so much. So you and I share a love of data, and a love of football. You said you want to be the quarterback, I'm more an old wine person. (Michelle laughing) >> Well, then I can do my job without you. >> Great, and I'm getting the feeling now you know, Sudheesh is talking about bungee jumping. My boat is when we're past this pandemic, we both take them to the Delaware Water Gap and we do the cliff jumping. >> That sounds good, I'll watch. >> You'll watch, okay, so Michelle, you have so many stakeholders when you're trying to prioritize the different voices, you have the players, you have the owners you have the league, as you mentioned to the broadcasters your, your partners here and football mamas like myself. How do you prioritize when there's so many different stakeholders that you need to satisfy? I think balancing across stakeholders starts with aligning on a mission. And if you spend a lot of time understanding where everyone's coming from, and you can find the common thread ties them all together you sort of do get them to naturally prioritize their work, and I think that's very important. So for us at the NFL, and even at Disney, it was our core values and our core purpose is so well known, and when anything challenges that we're able to sort of lay that out. But as a change agent, you have to be very empathetic, and I would say empathy is probably your strongest skill if you're a change agent. And that means listening to every single stakeholder even when they're yelling at you, even when they're telling you your technology doesn't work and you know that it's user error, or even when someone is just emotional about what's happening to them and that they're not comfortable with it. So I think being empathetic and having a mission and understanding it, is sort of how I prioritize and balance. >> Yeah, empathy, a very popular word this year. I can imagine those coaches and owners yelling. So I thank you for your metership here. So Michelle, I look forward to discussing this more with our other customers and disruptors joining us in a little bit. (soft upbeat music) >> So we're going to take a hard pivot now and go from football to Chernobyl, Chernobyl, what went wrong? 1986, as the reactors were melting down they had the data to say, this is going to be catastrophic and yet the culture said, "No, we're perfect, hide it. Don't dare tell anyone," which meant they went ahead and had celebrations in Kiev. Even though that increased the exposure the additional thousands getting cancer, and 20,000 years before the ground around there and even be inhabited again, This is how powerful and detrimental a negative culture, a culture that is unable to confront the brutal facts that hides data. This is what we have to contend with, and this is why I want you to focus on having fostering a data-driven culture. I don't want you to be a laggard, I want you to be a leader in using data to drive your digital transformation. So I'll talk about culture and technology, isn't really two sides of the same coin, real-world impacts and then some best practices you can use to disrupt and innovate your culture. Now, oftentimes I would talk about culture and I talk about technology, and recently a CDO said to me, "You know Cindi, I actually think this is two sides of the same coin. One reflects the other, what do you think?" Let me walk you through this, so let's take a laggard. What is the technology look like? Is it based on 1990s BI and reporting largely parameterized reports on-premises data warehouses, or not even that operational reports, at best one enterprise data warehouse very slow moving and collaboration is only email. What does that culture tell you? Maybe there's a lack of leadership to change, to do the hard work that Sudheesh referred to. Or is there also a culture of fear, afraid of failure, resistance to change complacency and sometimes that complacency it's not because people are lazy, it's because they've been so beaten down every time a new idea is presented. It's like, no we're measured on least cost to serve. So politics and distrust, whether it's between business and IT or individual stakeholders is the norm. So data is hoarded, let's contrast that with a leader, a data and analytics leader, what is their technology look like? Augmented analytics, search and AI-driven insights not on-premises, but in the cloud and maybe multiple clouds. And the data is not in one place, but it's in a data lake, and in a data warehouse, a logical data warehouse. The collaboration is being a newer methods whether it's Slack or teams allowing for that real time decisioning or investigating a particular data point. So what is the culture in the leaders? It's transparent and trust, there is a trust that data will not be used to punish, that there is an ability to confront the bad news. It's innovation, valuing innovation in pursuit of the company goals, whether it's the best fan experience and player safety in the NFL or best serving your customers. It's innovative and collaborative. There's none of this, oh, well, I didn't invent that, I'm not going to look at that. There's still pride of ownership, but it's collaborating to get to a better place faster. And people feel empowered to present new ideas to fail fast, and they're energized, knowing that they're using the best technology and innovating at the pace that business requires. So data is democratized and democratized, not just for power users or analysts, but really at the point of impact what we like to call the new decision makers. Or really the frontline workers. So Harvard business review partnered with us to develop this study to say, just how important is this? They've been working at BI and analytics as an industry for more than 20 years. Why is it not at the front lines? Whether it's a doctor, a nurse, a coach, a supply chain manager a warehouse manager, a financial services advisor. 87% said they would be more successful if frontline workers were empowered with data-driven insights, but they recognize they need new technology to be able to do that. It's not about learning hard tools, the sad reality only 20% of organizations are actually doing this, these are the data-driven leaders. So this is the culture and technology, how did we get here? It's because state of the art keeps changing. So the first generation BI and analytics platforms were deployed on-premises, on small datasets really just taking data out of ERP systems that were also on-premises, and state of the art was maybe getting a management report, an operational report. Over time visual based data discovery vendors, disrupted these traditional BI vendors, empowering now analysts to create visualizations with the flexibility on a desktop, sometimes larger data sometimes coming from a data warehouse, the current state of the art though, Gartner calls it augmented analytics, at ThoughtSpot, we call it search and AI-driven analytics. And this was pioneered for large scale data sets, whether it's on-premises or leveraging the cloud data warehouses, and I think this is an important point. Oftentimes you, the data and analytics leaders, will look at these two components separately, but you have to look at the BI and analytics tier in lockstep with your data architectures to really get to the granular insights, and to leverage the capabilities of AI. Now, if you've never seen ThoughtSpot I'll just show you what this looks like, instead of somebody's hard coding a report, it's typing in search keywords and very robust keywords contains rank, top, bottom getting to a visualization that then can be pinned to an existing Pinboard that might also contain insights generated by an AI engine. So it's easy enough for that new decision maker, the business user, the non analyst to create themselves. Modernizing the data and analytics portfolio is hard, because the pace of change has accelerated. You used to be able to create an investment, place a bet for maybe 10 years. A few years ago, that time horizon was five years, now it's maybe three years, and the time to maturity has also accelerated. So you have these different components the search and AI tier, the data science tier, data preparation and virtualization. But I would also say equally important is the cloud data warehouse. And pay attention to how well these analytics tools can unlock the value in these cloud data warehouses. So ThoughtSpot was the first to market with search and AI-driven insights. Competitors have followed suit, but be careful if you look at products like Power BI or SAP Analytics Cloud, they might demo well, but do they let you get to all the data without moving it in products like Snowflake, Amazon Redshift or Azure Synapse or Google BigQuery, they do not. They require you to move it into a smaller in memory engine. So it's important how well these new products inter operate. The pace of change, it's acceleration, Gartner recently predicted that by 2022, 65% of analytical queries will be generated using search or NLP or even AI, and that is roughly three times the prediction they had just a couple years ago. So let's talk about the real world impact of culture. And if you've read any of my books or used any of the maturity models out there whether the Gartner IT score that I worked on, or the data warehousing institute also has a maturity model. We talk about these five pillars to really become data-driven, as Michelle spoke about, it's focusing on the business outcomes, leveraging all the data, including new data sources. It's the talent, the people, the technology, and also the processes, and often when I would talk about the people in the talent, I would lump the culture as part of that. But in the last year, as I've traveled the world and done these digital events for thought leaders you have told me now culture is absolutely so important. And so we've pulled it out as a separate pillar, and in fact, in polls that we've done in these events, look at how much more important culture is, as a barrier to becoming data-driven. It's three times as important as any of these other pillars. That's how critical it is, and let's take an example of where you can have great data but if you don't have the right culture there's devastating impacts. And I will say, I have been a loyal customer of Wells Fargo for more than 20 years, but look at what happened in the face of negative news with data, that said, "Hey, we're not doing good cross selling, customers do not have both a checking account and a credit card and a savings account and a mortgage." They opened fake accounts, facing billions in fines, change in leadership, that even the CEO attributed to a toxic sales culture, and they're trying to fix this. But even recently there's been additional employee backlash saying that culture has not changed. Let's contrast that with some positive examples, Medtronic a worldwide company in 150 countries around the world, they may not be a household name to you, but if you have a loved one or yourself, you have a pacemaker, spinal implant, diabetes you know, this brand. And at the start of COVID when they knew their business would be slowing down, because hospitals would only be able to take care of COVID patients, they took the bold move of making their IP for ventilators publicly available, that is the power of a positive culture. Or Verizon, a major telecom organization, looking at late payments of their customers, and even though the US federal government said "Well, you can't turn them off." They said, "We'll extend that even beyond the mandated guidelines," and facing a slow down in the business because of the tough economy, he said, "You know what? We will spend the time upskilling our people giving them the time to learn more about the future of work, the skills and data and analytics," for 20,000 of their employees, rather than furloughing them. That is the power of a positive culture. So how can you transform your culture to the best in class? I'll give you three suggestions, bring in a change agent identify the relevance, or I like to call it WIIFM, and organize for collaboration. So the CDO whatever your title is, chief analytics officer chief digital officer, you are the most important change agent. And this is where you will hear, that oftentimes a change agent has to come from outside the organization. So this is where, for example in Europe, you have the CDO of Just Eat takeout food delivery organization, coming from the airline industry or in Australia, National Australian Bank, taking a CDO within the same sector from TD Bank going to NAB. So these change agents come in disrupt, it's a hard job. As one of you said to me, it often feels like Sisyphus, I make one step forward and I get knocked down again, I get pushed back. It is not for the faint of heart, but it's the most important part of your job. The other thing I'll talk about is WIIFM, what is in it for me? And this is really about understanding the motivation, the relevance that data has for everyone on the frontline as well as those analysts, as well as the executives. So if we're talking about players in the NFL they want to perform better, and they want to stay safe. That is why data matters to them. If we're talking about financial services this may be a wealth management advisor, okay, we could say commissions, but it's really helping people have their dreams come true whether it's putting their children through college, or being able to retire without having to work multiple jobs still into your 70s or 80s. For the teachers, teachers, you asked them about data, they'll say, "We don't need that, I care about the student." So if you can use data to help a student perform better that is WIIFM. And sometimes we spend so much time talking the technology, we forget what is the value we're trying to deliver with it. And we forget the impact on the people that it does require change. In fact, the Harvard Business Review Study, found that 44% said lack of change management is the biggest barrier to leveraging both new technology but also being empowered to act on those data-driven insights. The third point, organize for collaboration. This does require diversity of thought, but also bringing the technology, the data and the business people together. Now there's not a single one size fits all model for data and analytics. At one point in time, even having a BICC, a BI Competency Center was considered state of the art. Now for the biggest impact, what I recommend is that you have a federated model, centralized for economies of scale, that could be the common data, but then in bed, these evangelists, these analysts of the future, within every business unit, every functional domain, and as you see this top bar, all models are possible but the hybrid model has the most impact, the most leaders. So as we look ahead to the months ahead, to the year ahead, an exciting time, because data is helping organizations better navigate a tough economy lock in the customer loyalty, and I look forward to seeing how you foster that culture that's collaborative with empathy and bring the best of technology, leveraging the cloud, all your data. So thank you for joining us at thought leaders, and next I'm pleased to introduce our first change agent Thomas Mazzaferro, chief data officer of Western Union, and before joining Western Union, Tom made his mark at HSBC and JP Morgan Chase spearheading digital innovation in technology operations, risk compliance, and retail banking. Tom, thank you so much for joining us today. (soft upbeat music) >> Very happy to be here and looking forward to talking to all of you today. So as we look to move organizations to a data-driven capability into the future, there is a lot that needs to be done on the data side, but also how does data connect and enable, different business teams and technology teams into the future. As we look across our data ecosystems and our platforms and how we modernize that to the cloud in the future, it all needs to basically work together, right? To really be able to drive over the shift from a data standpoint, into the future. That includes being able to have the right information with the right quality of data at the right time to drive informed business decisions, to drive the business forward. As part of that, we actually have partnered with ThoughtSpot to actually bring in the technology to help us drive that, as part of that partnership, and it's how we've looked to integrated into our overall business as a whole. We've looked at how do we make sure that our business and our professional lives, right? Are enabled in the same ways as our personal lives. So for example, in your personal lives, when you want to go and find something out, what do you do? You go on to google.com or you go on to Bing, or go to Yahoo and you search for what you want, search to find an answer. ThoughtSpot for us as the same thing, but in the business world. So using ThoughtSpot and other AI capability is allowed us to actually enable our overall business teams in our company, to actually have our information at our fingertips. So rather than having to go and talk to someone or an engineer to go pull information or pull data, we actually can have the end users or the business executives, right? Search for what they need, what they want, at the exact time that action needed, to go and drive the business forward. This is truly one of those transformational things that we've put in place. On top of that, we are on the journey to modernize our larger ecosystem as a whole. That includes modernizing our underlying data warehouses, our technology or our (indistinct) environments, and as we move that we've actually picked to our cloud providers going to AWS and GCP. We've also adopted Snowflake to really drive into organize our information and our data, then drive these new solutions and capabilities forward. So big portion of us though is culture, so how do we engage with the business teams and bring the IT teams together to really drive these holistic end to end solutions and capabilities, to really support the actual business into the future. That's one of the keys here, as we look to modernize and to really enhance our organizations to become data-driven, this is the key. If you can really start to provide answers to business questions before they're even being asked, and to predict based upon different economic trends or different trends in your business, what does is be made and actually provide those answers to the business teams before they're even asking for it. That is really becoming a data-driven organization. And as part of that, it's really then enables the business to act quickly and take advantage of opportunities as they come in based upon industries, based upon markets, based upon products, solutions, or partnerships into the future. These are really some of the keys that become crucial as you move forward right into this new age, especially with COVID, with COVID now taking place across the world, right? Many of these markets, many of these digital transformations are celebrating, and are changing rapidly to accommodate and to support customers in these very difficult times. As part of that, you need to make sure you have the right underlying foundation, ecosystems and solutions to really drive those capabilities, and those solutions forward. As we go through this journey, both of my career but also each of your careers into the future, right? It also needs to evolve, right? Technology has changed so drastically in the last 10 years, and that change is only a celebrating. So as part of that, you have to make sure that you stay up to speed, up to date with new technology changes both on the platform standpoint, tools, but also what our customers want, what do our customers need, and how do we then surface them with our information, with our data, with our platform, with our products and our services, to meet those needs and to really support and service those customers into the future. This is all around becoming a more data-driven organization such as how do you use your data to support the current business lines. But how do you actually use your information your data, to actually better support your customers better support your business, better support your employees, your operations teams and so forth, and really creating that full integration in that ecosystem is really when you start to get large dividends from these investments into the future. With that being said I hope you enjoyed the segment on how to become and how to drive a data-driven organization, and looking forward to talking to you again soon, thank you. >> Tom, that was great, thanks so much. Now I'm going to have to brag on you for a second, as a change agent you've come in disrupted, and how long have you been at Western Union? >> Only nine months, I just started this year, but there'd be some great opportunities and big changes, and we have a lot more to go, but we're really driving things forward in partnership with our business teams, and our colleagues to support those customers forward. >> Tom, thank you so much that was wonderful. And now I'm excited to introduce you to Gustavo Canton, a change agent that I've had the pleasure of working with meeting in Europe, and he is a serial change agent. Most recently with Schneider Electric, but even going back to Sam's Club, Gustavo welcome. (soft upbeat music) >> So hi everyone my name is Gustavo Canton and thank you so much Cindi for the intro. As you mentioned, doing transformations is a you know, high effort, high reward situation. I have empowerment in transformation and I have led many transformations. And what I can tell you is that it's really hard to predict the future, but if you have a North Star and you know where you're going, the one thing that I want you to take away from this discussion today, is that you need to be bold to evolve. And so in today, I'm going to be talking about culture and data, and I'm going to break this down in four areas. How do we get started barriers or opportunities as I see it, the value of AI, and also how do you communicate, especially now in the workforce of today with so many different generations, you need to make sure that you are communicating in ways that are nontraditional sometimes. And so how do we get started? So I think the answer to that is, you have to start for you, yourself as a leader and stay tuned. And by that, I mean you need to understand not only what is happening in your function or your field, but you have to be very into what is happening in society, socioeconomically speaking, wellbeing, you know, the common example is a great example. And for me personally, it's an opportunity because the number one core value that I have is wellbeing. I believe that for human potential, for customers and communities to grow, wellbeing should be at the center of every decision. And as somebody mentioned, it's great to be you know, stay in tune and have the skillset and the courage. But for me personally, to be honest to have this courage is not about not being afraid. You're always afraid when you're making big changes and your swimming upstream. But what gives me the courage is the empathy part, like I think empathy is a huge component because every time I go into an organization or a function, I try to listen very attentively to the needs of the business, and what the leaders are trying to do, what I do it thinking about the mission of how do I make change for the bigger, you know workforce so the bigger good, despite the fact that this might have a perhaps implication, so my own self interest in my career, right? Because you have to have that courage sometimes to make choices, that are not well seeing politically speaking what are the right thing to do, and you have to push through it. So the bottom line for me is that, I don't think they're transforming fast enough. And the reality is I speak with a lot of leaders and we have seen stories in the past, and what they show is that if you look at the four main barriers, that are basically keeping us behind budget, inability to add, cultural issues, politics, and lack of alignment, those are the top four. But the interesting thing is that as Cindi has mentioned, this topic about culture is actually gaining more and more traction, and in 2018, there was a story from HBR and it was for about 45%. I believe today, it's about 55%, 60% of respondents say that this is the main area that we need to focus on. So again, for all those leaders and all the executives who understand, and are aware that we need to transform, commit to the transformation and set us deadline to say, "Hey, in two years, we're going to make this happen, what do we need to do to empower and enable these search engines to make it happen?" You need to make the tough choices. And so to me, when I speak about being bold is about making the right choices now. So I'll give you samples of some of the roadblocks that I went through, as I think the intro information most recently as Cindi mentioned in Schneider. There are three main areas, legacy mindset, and what that means is that we've been doing this in a specific way for a long time, and here is how we have been successful. We're working the past is not going to work now, the opportunity there is that there is a lot of leaders who have a digital mindset, and their up and coming leaders that are perhaps not yet fully developed. We need to mentor those leaders and take bets on some of these talents, including young talent. We cannot be thinking in the past and just wait for people you know, three to five years for them to develop, because the world is going to in a way that is super fast. The second area and this is specifically to implementation of AI is very interesting to me, because just example that I have with ThoughtSpot, right? We went to an implementation and a lot of the way the IT team functions, so the leaders look at technology, they look at it from the prism of the prior or success criteria for the traditional BIs, and that's not going to work. Again, your opportunity here is that you need to really find what success look like, in my case, I want the user experience of our workforce to be the same as your experience you have at home. It's a very simple concept, and so we need to think about how do we gain that user experience with this augmented analytics tools, and then work backwards to have the right talent, processes and technology to enable that. And finally, and obviously with COVID a lot of pressure in organizations and companies to do more with less, and the solution that most leaders I see are taking is to just minimize cost sometimes and cut budget. We have to do the opposite, we have to actually invest some growth areas, but do it by business question. Don't do it by function, if you actually invest in these kind of solutions, if you actually invest on developing your talent, your leadership, to see more digitally, if you actually invest on fixing your data platform is not just an incremental cost, it's actually this investment is going to offset all those hidden costs and inefficiencies that you have on your system, because people are doing a lot of work in working very hard but it's not efficiency, and it's not working in the way that you might want to work. So there is a lot of opportunity there, and you just to put it into some perspective, there have been some studies in the past about you know, how do we kind of measure the impact of data? And obviously this is going to vary by organization, maturity there's going to be a lot of factors. I've been in companies who have very clean, good data to work with, and I think with companies that we have to start basically from scratch. So it all depends on your maturity level, but in this study what I think is interesting is, they try to put a tagline or attack price to what is a cost of incomplete data. So in this case, it's about 10 times as much to complete a unit of work, when you have data that is flawed as opposed to have imperfect data. So let me put that just in perspective, just as an example, right? Imagine you are trying to do something and you have to do 100 things in a project, and each time you do something it's going to cost you a dollar. So if you have perfect data, the total cost of that project might be a $100. But now let's say you have any percent perfect data and 20% flow data, by using this assumption that flow data is 10 times as costly as perfect data, your total costs now becomes $280 as opposed to $100, this just for you to really think about as a CIO, CTO, you know CSRO, CEO, are we really paying attention and really closing the gaps that we have on our infrastructure? If we don't do that, it's hard sometimes to see the snowball effect or to measure the overall impact, but as you can tell, the price tag goes up very, very quickly. So now, if I were to say, how do I communicate this? Or how do I break through some of these challenges or some of these barriers, right? I think the key is I am in analytics, I know statistics obviously, and love modeling and you know, data and optimization theory and all that stuff, that's what I can do analytics, but now as a leader and as a change agent, I need to speak about value, and in this case, for example for Schneider, there was this tagline coffee of your energy. So the number one thing that they were asking from the analytics team was actually efficiency, which to me was very interesting. But once I understood that I understood what kind of language to use, how to connect it to the overall strategy and basically how to bring in the right leaders, because you need to, you know, focus on the leaders that you're going to make the most progress. You know, again, low effort, high value, you need to make sure you centralize all the data as you can, you need to bring in some kind of augmented analytics, you know, solution, and finally you need to make it super simple for the you know, in this case, I was working with the HR teams and other areas, so they can have access to one portal. They don't have to be confused and looking for 10 different places to find information. I think if you can actually have those four foundational pillars, obviously under the guise of having a data-driven culture, that's when you can actually make the impact. So in our case, it was about three years total transformation but it was two years for this component of augmented analytics. It took about two years to talk to, you know, IT, get leadership support, find the budgeting, you know, get everybody on board, make sure the success criteria was correct. And we call this initiative, the people analytics, I pulled up, it was actually launched in July of this year. And we were very excited and the audience was very excited to do this. In this case, we did our pilot in North America for many, many manufacturers, but one thing that is really important is as you bring along your audience on this, you know, you're going from Excel, you know in some cases or Tableau to other tools like you know, ThoughtSpot, you need to really explain them, what is the difference, and how these two can truly replace some of the spreadsheets or some of the views that you might have on these other kind of tools. Again, Tableau, I think it's a really good tool, there are other many tools that you might have in your toolkit. But in my case, personally I feel that you need to have one portal going back to seeing these points that really truly enable the end user. And I feel that this is the right solution for us, right? And I will show you some of the findings that we had in the pilot in the last two months. So this was a huge victory, and I will tell you why, because it took a lot of effort for us to get to these stations. Like I said it's been years for us to kind of lay the foundation, get the leadership and chasing culture, so people can understand why you truly need to invest what I meant analytics. And so what I'm showing here is an example of how do we use basically, you know a tool to capturing video, the qualitative findings that we had, plus the quantitative insights that we have. So in this case, our preliminary results based on our ambition for three main metrics, hours saved, user experience and adoption. So for hours saved, our ambition was to have 10 hours per week per employee save on average, user experience or ambition was 4.5 and adoption 80%. In just two months, two months and a half of the pilot we were able to achieve five hours, per week per employee savings. I used to experience for 4.3 out of five, and adoption of 60%. Really, really amazing work. But again, it takes a lot of collaboration for us to get to the stage from IT, legal, communications obviously the operations things and the users, in HR safety and other areas that might be basically stakeholders in this whole process. So just to summarize this kind of effort takes a lot of energy, you are a change agent, you need to have a courage to make these decision and understand that, I feel that in this day and age with all this disruption happening, we don't have a choice. We have to take the risk, right? And in this case, I feel a lot of satisfaction in how we were able to gain all these very souls for this organization, and that gave me the confidence to know that the work has been done, and we are now in a different stage for the organization. And so for me it safe to say, thank you for everybody who has believed obviously in our vision, everybody who has believed in, you know, the word that we were trying to do and to make the life for, you know workforce or customers that are in community better. As you can tell, there is a lot of effort, there is a lot of collaboration that is needed to do something like this. In the end, I feel very satisfied with the accomplishments of this transformation, and I just want to tell for you, if you are going right now in a moment that you feel that you have to swim upstream you know, what would mentors what people in this industry that can help you out and guide you on this kind of a transformation is not easy to do is high effort but is well worth it. And with that said, I hope you are well and it's been a pleasure talking to you, talk to you soon, take care. >> Thank you Gustavo, that was amazing. All right, let's go to the panel. (soft upbeat music) >> I think we can all agree how valuable it is to hear from practitioners, and I want to thank the panel for sharing their knowledge with the community, and one common challenge that I heard you all talk about was bringing your leadership and your teams along on the journey with you. We talk about this all the time, and it is critical to have support from the top, why? Because it directs the middle, and then it enables bottoms up innovation effects from the cultural transformation that you guys all talked about. It seems like another common theme we heard, is that you all prioritize database decision making in your organizations, and you combine two of your most valuable assets to do that, and create leverage, employees on the front lines, and of course the data. That was rightly pointed out, Tom, the pandemic has accelerated the need for really leaning into this. You know, the old saying, if it ain't broke, don't fix it, well COVID's broken everything. And it's great to hear from our experts, you know, how to move forward, so let's get right into it. So Gustavo let's start with you if I'm an aspiring change agent, and let's say I'm a budding data leader. What do I need to start doing? What habits do I need to create for long lasting success? >> I think curiosity is very important. You need to be, like I say, in tune to what is happening not only in your specific field, like I have a passion for analytics, I can do this for 50 years plus, but I think you need to understand wellbeing other areas across not only a specific business as you know, I come from, you know, Sam's Club Walmart retail, I mean energy management technology. So you have to try to push yourself and basically go out of your comfort zone. I mean, if you are staying in your comfort zone and you want to use lean continuous improvement that's just going to take you so far. What you have to do is and that's what I tried to do is I try to go into areas, businesses and transformations that make me, you know stretch and develop as a leader. That's what I'm looking to do, so I can help transform the functions organizations, and do these change management and decisions mindset as required for these kinds of efforts. >> Thank you for that is inspiring and Cindi, you love data, and the data is pretty clear that diversity is a good business, but I wonder if you can add your perspectives to this conversation. >> Yeah, so Michelle has a new fan here because she has found her voice, I'm still working on finding mine. And it's interesting because I was raised by my dad, a single dad, so he did teach me how to work in a predominantly male environment. But why I think diversity matters more now than ever before, and this is by gender, by race, by age, by just different ways of working and thinking is because as we automate things with AI, if we do not have diverse teams looking at the data and the models, and how they're applied, we risk having bias at scale. So this is why I think I don't care what type of minority, you are finding your voice, having a seat at the table and just believing in the impact of your work has never been more important. And as Michelle said more possible >> Great perspectives thank you, Tom, I want to go to you. I mean, I feel like everybody in our businesses in some way, shape or form become a COVID expert but what's been the impact of the pandemic on your organization's digital transformation plans? >> We've seen a massive growth actually you know, in a digital business over the last 12 months really, even in celebration, right? Once COVID hit, we really saw that in the 200 countries and territories that we operate in today and service our customers and today, that there's been a huge need, right? To send money, to support family, to support friends and loved ones across the world. And as part of that, you know, we are very honored to support those customers that we across all the centers today. But as part of that celebration, we need to make sure that we had the right architecture and the right platforms to basically scale, right? To basically support and provide the right kind of security for our customers going forward. So as part of that, we did do some pivots and we did celebrate some of our plans on digital to help support that overall growth coming in, and to support our customers going forward. Because there were these times during this pandemic, right? This is the most important time, and we need to support those that we love and those that we care about. And in doing that, it's one of those ways is actually by sending money to them, support them financially. And that's where really are part of that our services come into play that, you know, I really support those families. So it was really a great opportunity for us to really support and really bring some of our products to this level, and supporting our business going forward. >> Awesome, thank you. Now I want to come back to Gustavo, Tom, I'd love for you to chime in too. Did you guys ever think like you were pushing the envelope too much and doing things with data or the technology that was just maybe too bold, maybe you felt like at some point it was failing, or you pushing your people too hard, can you share that experience and how you got through it? >> Yeah, the way I look at it is, you know, again, whenever I go to an organization I ask the question, Hey, how fast you would like to conform?" And, you know, based on the agreements on the leadership and the vision that we want to take place, I take decisions and I collaborate in a specific way. Now, in the case of COVID, for example, right? It forces us to remove silos and collaborate in a faster way, so to me it was an opportunity to actually integrate with other areas and drive decisions faster. But make no mistake about it, when you are doing a transformation, you are obviously trying to do things faster than sometimes people are comfortable doing and you need to be okay with that. Sometimes you need to be okay with tension, or you need to be okay, you know debating points or making repetitive business cases onto people connect with the decision because you understand, and you are seeing that, hey, the CEO is making a one, two year, you know, efficiency goal, the only way for us to really do more with less is for us to continue this path. We cannot just stay with the status quo, we need to find a way to accelerate transformation... >> How about you Tom, we were talking earlier was Sudheesh had said about that bungee jumping moment, what can you share? >> Yeah you know, I think you hit upon it. Right now, the pace of change will be the slowest pace that you see for the rest of your career. So as part of that, right? That's what I tell my team is that you need to feel comfortable being uncomfortable. I mean, that we have to be able to basically scale, right? Expand and support that the ever changing needs the marketplace and industry and our customers today and that pace of change that's happening, right? And what customers are asking for, and the competition the marketplace, it's only going to accelerate. So as part of that, you know, as we look at what how you're operating today in your current business model, right? Things are only going to get faster. So you have to plan into align, to drive the actual transformation, so that you can scale even faster into the future. So as part of that, so we're putting in place here, right? Is how do we create that underlying framework and foundation that allows the organization to basically continue to scale and evolve into the future? >> We're definitely out of our comfort zones, but we're getting comfortable with it. So, Cindi, last question, you've worked with hundreds of organizations, and I got to believe that you know, some of the advice you gave when you were at Gartner, which is pre COVID, maybe sometimes clients didn't always act on it. You know, they're not on my watch for whatever variety of reasons, but it's being forced on them now, but knowing what you know now that you know, we're all in this isolation economy how would you say that advice has changed, has it changed? What's your number one action and recommendation today? >> Yeah well, first off, Tom just freaked me out. What do you mean this is the slowest ever? Even six months ago, I was saying the pace of change in data and analytics is frenetic. So, but I think you're right, Tom, the business and the technology together is forcing this change. Now, Dave, to answer your question, I would say the one bit of advice, maybe I was a little more, very aware of the power in politics and how to bring people along in a way that they are comfortable, and now I think it's, you know what? You can't get comfortable. In fact, we know that the organizations that were already in the cloud, have been able to respond and pivot faster. So if you really want to survive as Tom and Gustavo said, get used to being uncomfortable, the power and politics are going to happen. Break the rules, get used to that and be bold. Do not be afraid to tell somebody they're wrong and they're not moving fast enough. I do think you have to do that with empathy as Michelle said, and Gustavo, I think that's one of the key words today besides the bungee jumping. So I want to know where's Sudheesh going to go on bungee jumping? (all chuckling) >> That's fantastic discussion really. Thanks again to all the panelists and the guests, it was really a pleasure speaking with you today. Really virtually all of the leaders that I've spoken to in theCUBE program recently, they tell me that the pandemic is accelerating so many things, whether it's new ways to work, we heard about new security models and obviously the need for cloud. I mean, all of these things are driving true enterprise wide digital transformation, not just as I said before lip service. And sometimes we minimize the importance and the challenge of building culture and in making this transformation possible. But when it's done right, the right culture is going to deliver tremendous results. Yeah, what does that mean getting it right? Everybody's trying to get it right. My biggest takeaway today, is it means making data part of the DNA of your organization. And that means making it accessible to the people in your organization that are empowered to make decisions that can drive you revenue, cut costs, speed, access to critical care, whatever the mission is of your organization. Data can create insights and informed decisions that drive value. Okay, let's bring back Sudheesh and wrap things up. Sudheesh please bring us home. >> Thank you, thank you Dave, thank you theCUBE team, and thanks goes to all of our customers and partners who joined us, and thanks to all of you for spending the time with us. I want to do three quick things and then close it off. The first thing is I want to summarize the key takeaways that I had from all four of our distinguished speakers. First, Michelle, I was simply put it, she said it really well, that is be brave and drive. Don't go for a drive along, that is such an important point. Often times, you know that I think that you have to do to make the positive change that you want to see happen. But you wait for someone else to do it, why not you? Why don't you be the one making that change happen? That's the thing that I picked up from Michelle's talk. Cindi talked about finding the importance of finding your voice, taking that chair, whether it's available or not and making sure that your ideas, your voices are heard and if it requires some force then apply that force, make sure your ideas are good. Gustavo talked about the importance of building consensus, not going at things all alone sometimes building the importance of building the courtroom. And that is critical because if you want the changes to last, you want to make sure that the organization is fully behind it. Tom instead of a single take away, what I was inspired by is the fact that a company that is 170 years old, 170 years old, 200 companies and 200 countries they're operating in, and they were able to make the change that is necessary through this difficult time. So in a matter of months, if they could do it, anyone could. The second thing I want to do is to leave you with a takeaway that is I would like you to go to thoughtspot.com/nfl because our team has made an app for NFL on Snowflake. I think you will find this interesting now that you are inspired and excited because of Michelle's talk. And the last thing is, please go to thoughtspot.com/beyond, our global user conferences happening in this December, we would love to have you join us. It's again, virtual, you can join from anywhere, we are expecting anywhere from five to 10,000 people, and we would love to have you join and see what we would have been up to since the last year. We have a lot of amazing things in store for you, our customers, our partners, our collaborators, they will be coming and sharing, you'll be sharing things that you have been working to release something that will come out next year. And also some of the crazy ideas for engineers I've been cooking up. All of those things will be available for you at ThoughtSpot Beyond, thank you, thank you so much.

(speaks in foreign language) >> Narrator: Data is at the heart of transformation and the change every company needs to succeed, but it takes more than new technology. It's about teams, talent, and cultural change. Empowering everyone on the front lines to make decisions, all at the speed of digital. The transformation starts with you. It's time to lead the way, it's time for thought leaders. >> Welcome to Thought Leaders, a digital event brought to you by ThoughtSpot. My name is Dave Vellante. The purpose of this day is to bring industry leaders and experts together to really try and understand the important issues around digital transformation. We have an amazing lineup of speakers and our goal is to provide you with some best practices that you can bring back and apply to your organization. Look, data is plentiful, but insights are not. ThoughtSpot is disrupting analytics by using search and machine intelligence to simplify data analysis, and really empower anyone with fast access to relevant data. But in the last 150 days, we've had more questions than answers. Creating an organization that puts data and insights at their core, requires not only modern technology, but leadership, a mindset and a culture that people often refer to as data-driven. What does that mean? How can we equip our teams with data and fast access to quality information that can turn insights into action. And today, we're going to hear from experienced leaders, who are transforming their organizations with data, insights and creating digital-first cultures. But before we introduce our speakers, I'm joined today by two of my co-hosts from ThoughtSpot. First, Chief Data Strategy Officer for ThoughtSpot is Cindi Hausen. Cindi is an analytics and BI expert with 20 plus years experience and the author of Successful Business Intelligence Unlock The Value of BI and Big Data. Cindi was previously the lead analyst at Gartner for the data and analytics magic quadrant. And early last year, she joined ThoughtSpot to help CDOs and their teams understand how best to leverage analytics and AI for digital transformation. Cindi, great to see you, welcome to the show. >> Thank you, Dave. Nice to join you virtually. >> Now our second cohost and friend of theCUBE is ThoughtSpot CEO Sudheesh Nair. Hello Sudheesh, how are you doing today? >> I am well Dave, it's good to talk to you again. >> It's great to see you. Thanks so much for being here. Now Sudheesh, please share with us why this discussion is so important to your customers and of course, to our audience and what they're going to learn today? (gentle music) >> Thanks, Dave, I wish you were there to introduce me into every room that I walk into because you have such an amazing way of doing it. It makes me feel also good. Look, since we have all been cooped up in our homes, I know that the vendors like us, we have amped up our, you know, sort of effort to reach out to you with invites for events like this. So we are getting way more invites for events like this than ever before. So when we started planning for this, we had three clear goals that we wanted to accomplish. And our first one that when you finish this and walk away, we want to make sure that you don't feel like it was a waste of time. We want to make sure that we value your time, and this is going to be useful. Number two, we want to put you in touch with industry leaders and thought leaders, and generally good people that you want to hang around with long after this event is over. And number three, as we plan through this, you know, we are living through these difficult times, we want an event to be, this event to be more of an uplifting and inspiring event too. Now, the challenge is, how do you do that with the team being change agents? Because change and as much as we romanticize it, it is not one of those uplifting things that everyone wants to do or likes to do. The way I think of it, change is sort of like, if you've ever done bungee jumping. You know, it's like standing on the edges, waiting to make that one more step. You know, all you have to do is take that one step and gravity will do the rest, but that is the hardest step to take. Change requires a lot of courage and when we are talking about data and analytics, which is already like such a hard topic, not necessarily an uplifting and positive conversation, in most businesses it is somewhat scary. Change becomes all the more difficult. Ultimately change requires courage. Courage to to, first of all, challenge the status quo. People sometimes are afraid to challenge the status quo because they are thinking that, "You know, maybe I don't have the power to make the change that the company needs. Sometimes I feel like I don't have the skills." Sometimes they may feel that, I'm probably not the right person to do it. Or sometimes the lack of courage manifest itself as the inability to sort of break the silos that are formed within the organizations, when it comes to data and insights that you talked about. You know, there are people in the company, who are going to hog the data because they know how to manage the data, how to inquire and extract. They know how to speak data, they have the skills to do that, but they are not the group of people who have sort of the knowledge, the experience of the business to ask the right questions off the data. So there is this silo of people with the answers and there is a silo of people with the questions, and there is gap. These sort of silos are standing in the way of making that necessary change that we all I know the business needs, and the last change to sort of bring an external force sometimes. It could be a tool, it could be a platform, it could be a person, it could be a process, but sometimes no matter how big the company is or how small the company is. You may need to bring some external stimuli to start that domino of the positive changes that are necessary. The group of people that we have brought in, the four people, including Cindi, that you will hear from today are really good at practically telling you how to make that step, how to step off that edge, how to trust the rope that you will be safe and you're going to have fun. You will have that exhilarating feeling of jumping for a bungee jump. All four of them are exceptional, but my honor is to introduce Michelle and she's our first speaker. Michelle, I am very happy after watching her presentation and reading her bio, that there are no country vital worldwide competition for cool patents, because she will beat all of us because when her children were small, you know, they were probably into Harry Potter and Disney and she was managing a business and leading change there. And then as her kids grew up and got to that age, where they like football and NFL, guess what? She's the CIO of NFL. What a cool mom. I am extremely excited to see what she's going to talk about. I've seen the slides with a bunch of amazing pictures, I'm looking to see the context behind it. I'm very thrilled to make the acquaintance of Michelle. I'm looking forward to her talk next. Welcome Michelle. It's over to you. (gentle music) >> I'm delighted to be with you all today to talk about thought leadership. And I'm so excited that you asked me to join you because today I get to be a quarterback. I always wanted to be one. This is about as close as I'm ever going to get. So, I want to talk to you about quarterbacking our digital revolution using insights, data and of course, as you said, leadership. First, a little bit about myself, a little background. As I said, I always wanted to play football and this is something that I wanted to do since I was a child but when I grew up, girls didn't get to play football. I'm so happy that that's changing and girls are now doing all kinds of things that they didn't get to do before. Just this past weekend on an NFL field, we had a female coach on two sidelines and a female official on the field. I'm a lifelong fan and student of the game of football. I grew up in the South. You can tell from the accent and in the South football is like a religion and you pick sides. I chose Auburn University working in the athletic department, so I'm testament. Till you can start, a journey can be long. It took me many, many years to make it into professional sports. I graduated in 1987 and my little brother, well not actually not so little, he played offensive line for the Alabama Crimson Tide. And for those of you who know SEC football, you know this is a really big rivalry, and when you choose sides your family is divided. So it's kind of fun for me to always tell the story that my dad knew his kid would make it to the NFL, he just bet on the wrong one. My career has been about bringing people together for memorable moments at some of America's most iconic brands, delivering memories and amazing experiences that delight. From Universal Studios, Disney, to my current position as CIO of the NFL. In this job, I'm very privileged to have the opportunity to work with a team that gets to bring America's game to millions of people around the world. Often, I'm asked to talk about how to create amazing experiences for fans, guests or customers. But today, I really wanted to focus on something different and talk to you about being behind the scenes and backstage. Because behind every event, every game, every awesome moment, is execution. Precise, repeatable execution and most of my career has been behind the scenes doing just that. Assembling teams to execute these plans and the key way that companies operate at these exceptional levels is making good decisions, the right decisions, at the right time and based upon data. So that you can translate the data into intelligence and be a data-driven culture. Using data and intelligence is an important way that world-class companies do differentiate themselves, and it's the lifeblood of collaboration and innovation. Teams that are working on delivering these kind of world class experiences are often seeking out and leveraging next generation technologies and finding new ways to work. I've been fortunate to work across three decades of emerging experiences, which each required emerging technologies to execute. A little bit first about Disney. In '90s I was at Disney leading a project called Destination Disney, which it's a data project. It was a data project, but it was CRM before CRM was even cool and then certainly before anything like a data-driven culture was ever brought up. But way back then we were creating a digital backbone that enabled many technologies for the things that you see today. Like the MagicBand, Disney's Magical Express. My career at Disney began in finance, but Disney was very good about rotating you around. And it was during one of these rotations that I became very passionate about data. I kind of became a pain in the butt to the IT team asking for data, more and more data. And I learned that all of that valuable data was locked up in our systems. All of our point of sales systems, our reservation systems, our operation systems. And so I became a shadow IT person in marketing, ultimately, leading to moving into IT and I haven't looked back since. In the early 2000s, I was at Universal Studio's theme park as their CIO preparing for and launching the Wizarding World of Harry Potter. Bringing one of history's most memorable characters to life required many new technologies and a lot of data. Our data and technologies were embedded into the rides and attractions. I mean, how do you really think a wand selects you at a wand shop. As today at the NFL, I am constantly challenged to do leading edge technologies, using things like sensors, AI, machine learning and all new communication strategies, and using data to drive everything, from player performance, contracts, to where we build new stadiums and hold events. With this year being the most challenging, yet rewarding year in my career at the NFL. In the middle of a global pandemic, the way we are executing on our season is leveraging data from contact tracing devices joined with testing data. Talk about data actually enabling your business. Without it we wouldn't be having a season right now. I'm also on the board of directors of two public companies, where data and collaboration are paramount. First, RingCentral, it's a cloud based unified communications platform and collaboration with video message and phone, all-in-one solution in the cloud and Quotient Technologies, whose product is actually data. The tagline at Quotient is The Result in Knowing. I think that's really important because not all of us are data companies, where your product is actually data, but we should operate more like your product is data. I'd also like to talk to you about four areas of things to think about as thought leaders in your companies. First, just hit on it, is change. how to be a champion and a driver of change. Second, how to use data to drive performance for your company and measure performance of your company. Third, how companies now require intense collaboration to operate and finally, how much of this is accomplished through solid data-driven decisions. First, let's hit on change. I mean, it's evident today more than ever, that we are in an environment of extreme change. I mean, we've all been at this for years and as technologists we've known it, believed it, lived it. And thankfully, for the most part, knock on wood, we were prepared for it. But this year everyone's cheese was moved. All the people in the back rooms, IT, data architects and others were suddenly called to the forefront because a global pandemic has turned out to be the thing that is driving intense change in how people work and analyze their business. On March 13th, we closed our office at the NFL in the middle of preparing for one of our biggest events, our kickoff event, The 2020 Draft. We went from planning a large event in Las Vegas under the bright lights, red carpet stage, to smaller events in club facilities. And then ultimately, to one where everyone coaches, GMs, prospects and even our commissioner were at home in their basements and we only had a few weeks to figure it out. I found myself for the first time, being in the live broadcast event space. Talking about bungee jumping, this is really what it felt like. It was one in which no one felt comfortable because it had not been done before. But leading through this, I stepped up, but it was very scary, it was certainly very risky, but it ended up being also rewarding when we did it. And as a result of this, some things will change forever. Second, managing performance. I mean, data should inform how you're doing and how to get your company to perform at its level, highest level. As an example, the NFL has always measured performance, obviously, and it is one of the purest examples of how performance directly impacts outcome. I mean, you can see performance on the field, you can see points being scored and stats, and you immediately know that impact. Those with the best stats usually win the games. The NFL has always recorded stats. Since the beginning of time here at the NFL a little... This year is our 101st year and athlete's ultimate success as a player has also always been greatly impacted by his stats. But what has changed for us is both how much more we can measure and the immediacy with which it can be measured and I'm sure in your business it's the same. The amount of data you must have has got to have quadrupled recently. And how fast do you need it and how quickly you need to analyze it is so important. And it's very important to break the silos between the keys to the data and the use of the data. Our next generation stats platform is taking data to the next level. It's powered by Amazon Web Services and we gather this data, real-time from sensors that are on players' bodies. We gather it in real time, analyze it, display it online and on broadcast. And of course, it's used to prepare week to week in addition to what is a normal coaching plan would be. We can now analyze, visualize, route patterns, speed, match-ups, et cetera, so much faster than ever before. We're continuing to roll out sensors too, that will gather more and more information about a player's performance as it relates to their health and safety. The third trend is really, I think it's a big part of what we're feeling today and that is intense collaboration. And just for sort of historical purposes, it's important to think about, for those of you that are IT professionals and developers, you know, more than 10 years ago agile practices began sweeping companies. Where small teams would work together rapidly in a very flexible, adaptive and innovative way and it proved to be transformational. However today, of course that is no longer just small teams, the next big wave of change and we've seen it through this pandemic, is that it's the whole enterprise that must collaborate and be agile. If I look back on my career, when I was at Disney, we owned everything 100%. We made a decision, we implemented it. We were a collaborative culture but it was much easier to push change because you own the whole decision. If there was buy-in from the top down, you got the people from the bottom up to do it and you executed. At Universal, we were a joint venture. Our attractions and entertainment was licensed. Our hotels were owned and managed by other third parties, so influence and collaboration, and how to share across companies became very important. And now here I am at the NFL an even the bigger ecosystem. We have 32 clubs that are all separate businesses, 31 different stadiums that are owned by a variety of people. We have licensees, we have sponsors, we have broadcast partners. So it seems that as my career has evolved, centralized control has gotten less and less and has been replaced by intense collaboration, not only within your own company but across companies. The ability to work in a collaborative way across businesses and even other companies, that has been a big key to my success in my career. I believe this whole vertical integration and big top-down decision-making is going by the wayside in favor of ecosystems that require cooperation, yet competition to co-exist. I mean, the NFL is a great example of what we call co-oppetition, which is cooperation and competition. We're in competition with each other, but we cooperate to make the company the best it can be. And at the heart of these items really are data-driven decisions and culture. Data on its own isn't good enough. You must be able to turn it to insights. Partnerships between technology teams who usually hold the keys to the raw data and business units, who have the knowledge to build the right decision models is key. If you're not already involved in this linkage, you should be, data mining isn't new for sure. The availability of data is quadrupling and it's everywhere. How do you know what to even look at? How do you know where to begin? How do you know what questions to ask? It's by using the tools that are available for visualization and analytics and knitting together strategies of the company. So it begins with, first of all, making sure you do understand the strategy of the company. So in closing, just to wrap up a bit, many of you joined today, looking for thought leadership on how to be a change agent, a change champion, and how to lead through transformation. Some final thoughts are be brave and drive. Don't do the ride along program, it's very important to drive. Driving can be high risk, but it's also high reward. Embracing the uncertainty of what will happen is how you become brave. Get more and more comfortable with uncertainty, be calm and let data be your map on your journey. Thanks. >> Michelle, thank you so much. So you and I share a love of data and a love of football. You said you want to be the quarterback. I'm more an a line person. >> Well, then I can't do my job without you. >> Great and I'm getting the feeling now, you know, Sudheesh is talking about bungee jumping. My vote is when we're past this pandemic, we both take him to the Delaware Water Gap and we do the cliff jumping. >> Oh that sounds good, I'll watch your watch. >> Yeah, you'll watch, okay. So Michelle, you have so many stakeholders, when you're trying to prioritize the different voices you have the players, you have the owners, you have the league, as you mentioned, the broadcasters, your partners here and football mamas like myself. How do you prioritize when there are so many different stakeholders that you need to satisfy? >> I think balancing across stakeholders starts with aligning on a mission and if you spend a lot of time understanding where everyone's coming from, and you can find the common thread that ties them all together. You sort of do get them to naturally prioritize their work and I think that's very important. So for us at the NFL and even at Disney, it was our core values and our core purpose is so well known and when anything challenges that, we're able to sort of lay that out. But as a change agent, you have to be very empathetic, and I would say empathy is probably your strongest skill if you're a change agent and that means listening to every single stakeholder. Even when they're yelling at you, even when they're telling you your technology doesn't work and you know that it's user error, or even when someone is just emotional about what's happening to them and that they're not comfortable with it. So I think being empathetic, and having a mission, and understanding it is sort of how I prioritize and balance. >> Yeah, empathy, a very popular word this year. I can imagine those coaches and owners yelling, so thank you for your leadership here. So Michelle, I look forward to discussing this more with our other customers and disruptors joining us in a little bit. >> (gentle music) So we're going to take a hard pivot now and go from football to Chernobyl. Chernobyl, what went wrong? 1986, as the reactors were melting down, they had the data to say, "This is going to be catastrophic," and yet the culture said, "No, we're perfect, hide it. Don't dare tell anyone." Which meant they went ahead and had celebrations in Kiev. Even though that increased the exposure, additional thousands getting cancer and 20,000 years before the ground around there can even be inhabited again. This is how powerful and detrimental a negative culture, a culture that is unable to confront the brutal facts that hides data. This is what we have to contend with and this is why I want you to focus on having, fostering a data-driven culture. I don't want you to be a laggard. I want you to be a leader in using data to drive your digital transformation. So I'll talk about culture and technology, is it really two sides of the same coin? Real-world impacts and then some best practices you can use to disrupt and innovate your culture. Now, oftentimes I would talk about culture and I talk about technology. And recently a CDO said to me, "You know, Cindi, I actually think this is two sides of the same coin, one reflects the other." What do you think? Let me walk you through this. So let's take a laggard. What does the technology look like? Is it based on 1990s BI and reporting, largely parametrized reports, on-premises data warehouses, or not even that operational reports. At best one enterprise data warehouse, very slow moving and collaboration is only email. What does that culture tell you? Maybe there's a lack of leadership to change, to do the hard work that Sudheesh referred to, or is there also a culture of fear, afraid of failure, resistance to change, complacency. And sometimes that complacency, it's not because people are lazy. It's because they've been so beaten down every time a new idea is presented. It's like, "No, we're measured on least to serve." So politics and distrust, whether it's between business and IT or individual stakeholders is the norm, so data is hoarded. Let's contrast that with the leader, a data and analytics leader, what does their technology look like? Augmented analytics, search and AI driven insights, not on-premises but in the cloud and maybe multiple clouds. And the data is not in one place but it's in a data lake and in a data warehouse, a logical data warehouse. The collaboration is via newer methods, whether it's Slack or Teams, allowing for that real-time decisioning or investigating a particular data point. So what is the culture in the leaders? It's transparent and trust. There is a trust that data will not be used to punish, that there is an ability to confront the bad news. It's innovation, valuing innovation in pursuit of the company goals. Whether it's the best fan experience and player safety in the NFL or best serving your customers, it's innovative and collaborative. There's none of this, "Oh, well, I didn't invent that. I'm not going to look at that." There's still pride of ownership, but it's collaborating to get to a better place faster. And people feel empowered to present new ideas, to fail fast and they're energized knowing that they're using the best technology and innovating at the pace that business requires. So data is democratized and democratized, not just for power users or analysts, but really at the point of impact, what we like to call the new decision-makers or really the frontline workers. So Harvard Business Review partnered with us to develop this study to say, "Just how important is this? We've been working at BI and analytics as an industry for more than 20 years, why is it not at the front lines? Whether it's a doctor, a nurse, a coach, a supply chain manager, a warehouse manager, a financial services advisor." 87% said they would be more successful if frontline workers were empowered with data-driven insights, but they recognize they need new technology to be able to do that. It's not about learning hard tools. The sad reality only 20% of organizations are actually doing this. These are the data-driven leaders. So this is the culture and technology, how did we get here? It's because state-of-the-art keeps changing. So the first generation BI and analytics platforms were deployed on-premises, on small datasets, really just taking data out of ERP systems that were also on-premises and state-of-the-art was maybe getting a management report, an operational report. Over time, visual based data discovery vendors disrupted these traditional BI vendors, empowering now analysts to create visualizations with the flexibility on a desktop, sometimes larger data, sometimes coming from a data warehouse. The current state-of-the-art though, Gartner calls it augmented analytics. At ThoughtSpot, we call it search and AI driven analytics, and this was pioneered for large scale data sets, whether it's on-premises or leveraging the cloud data warehouses. And I think this is an important point, oftentimes you, the data and analytics leaders, will look at these two components separately. But you have to look at the BI and analytics tier in lock-step with your data architectures to really get to the granular insights and to leverage the capabilities of AI. Now, if you've never seen ThoughtSpot, I'll just show you what this looks like. Instead of somebody hard coding a report, it's typing in search keywords and very robust keywords contains rank, top, bottom, getting to a visual visualization that then can be pinned to an existing pin board that might also contain insights generated by an AI engine. So it's easy enough for that new decision maker, the business user, the non-analyst to create themselves. Modernizing the data and analytics portfolio is hard because the pace of change has accelerated. You used to be able to create an investment, place a bet for maybe 10 years. A few years ago, that time horizon was five years. Now, it's maybe three years and the time to maturity has also accelerated. So you have these different components, the search and AI tier, the data science tier, data preparation and virtualization but I would also say, equally important is the cloud data warehouse. And pay attention to how well these analytics tools can unlock the value in these cloud data warehouses. So ThoughtSpot was the first to market with search and AI driven insights. Competitors have followed suit, but be careful, if you look at products like Power BI or SAP analytics cloud, they might demo well, but do they let you get to all the data without moving it in products like Snowflake, Amazon Redshift, or Azure Synapse, or Google BigQuery, they do not. They require you to move it into a smaller in-memory engine. So it's important how well these new products inter-operate. The pace of change, its acceleration, Gartner recently predicted that by 2022, 65% of analytical queries will be generated using search or NLP or even AI and that is roughly three times the prediction they had just a couple of years ago. So let's talk about the real world impact of culture and if you've read any of my books or used any of the maturity models out there, whether the Gartner IT Score that I worked on or the Data Warehousing Institute also has a maturity model. We talk about these five pillars to really become data-driven. As Michelle spoke about, it's focusing on the business outcomes, leveraging all the data, including new data sources, it's the talent, the people, the technology and also the processes. And often when I would talk about the people in the talent, I would lump the culture as part of that. But in the last year, as I've traveled the world and done these digital events for thought leaders. You have told me now culture is absolutely so important, and so we've pulled it out as a separate pillar. And in fact, in polls that we've done in these events, look at how much more important culture is as a barrier to becoming data-driven. It's three times as important as any of these other pillars. That's how critical it is. And let's take an example of where you can have great data, but if you don't have the right culture, there's devastating impacts. And I will say I have been a loyal customer of Wells Fargo for more than 20 years, but look at what happened in the face of negative news with data. It said, "Hey, we're not doing good cross-selling, customers do not have both a checking account and a credit card and a savings account and a mortgage." They opened fake accounts facing billions in fines, change in leadership that even the CEO attributed to a toxic sales culture and they're trying to fix this, but even recently there's been additional employee backlash saying the culture has not changed. Let's contrast that with some positive examples. Medtronic, a worldwide company in 150 countries around the world. They may not be a household name to you, but if you have a loved one or yourself, you have a pacemaker, spinal implant, diabetes, you know this brand. And at the start of COVID when they knew their business would be slowing down, because hospitals would only be able to take care of COVID patients. They took the bold move of making their IP for ventilators publicly available. That is the power of a positive culture. Or Verizon, a major telecom organization looking at late payments of their customers and even though the U.S. Federal Government said, "Well, you can't turn them off." They said, "We'll extend that even beyond the mandated guidelines," and facing a slow down in the business because of the tough economy, They said, "You know what? We will spend the time upskilling our people, giving them the time to learn more about the future of work, the skills and data and analytics for 20,000 of their employees rather than furloughing them. That is the power of a positive culture. So how can you transform your culture to the best in class? I'll give you three suggestions. Bring in a change agent, identify the relevance or I like to call it WIIFM and organize for collaboration. So the CDO, whatever your title is, Chief Analytics Officer, Chief Digital Officer, you are the most important change agent. And this is where you will hear that oftentimes a change agent has to come from outside the organization. So this is where, for example, in Europe you have the CDO of Just Eat, a takeout food delivery organization coming from the airline industry or in Australia, National Australian Bank taking a CDO within the same sector from TD Bank going to NAB. So these change agents come in, disrupt. It's a hard job. As one of you said to me, it often feels like. I make one step forward and I get knocked down again, I get pushed back. It is not for the faint of heart, but it's the most important part of your job. The other thing I'll talk about is WIIFM What's In It For Me? And this is really about understanding the motivation, the relevance that data has for everyone on the frontline, as well as those analysts, as well as the executives. So, if we're talking about players in the NFL, they want to perform better and they want to stay safe. That is why data matters to them. If we're talking about financial services, this may be a wealth management advisor. Okay, we could say commissions, but it's really helping people have their dreams come true, whether it's putting their children through college or being able to retire without having to work multiple jobs still into your 70s or 80s. For the teachers, teachers you ask them about data. They'll say, "We don't need that, I care about the student." So if you can use data to help a student perform better, that is WIIFM and sometimes we spend so much time talking the technology, we forget, what is the value we're trying to deliver with this? And we forget the impact on the people that it does require change. In fact, the Harvard Business Review study found that 44% said lack of change management is the biggest barrier to leveraging both new technology, but also being empowered to act on those data-driven insights. The third point, organize for collaboration. This does require diversity of thought, but also bringing the technology, the data and the business people together. Now there's not a single one size fits all model for data and analytics. At one point in time, even having a BICC, a BI competency center was considered state of the art. Now for the biggest impact, what I recommend is that you have a federated model centralized for economies of scale. That could be the common data, but then embed these evangelists, these analysts of the future within every business unit, every functional domain. And as you see this top bar, all models are possible, but the hybrid model has the most impact, the most leaders. So as we look ahead to the months ahead, to the year ahead, an exciting time because data is helping organizations better navigate a tough economy, lock in the customer loyalty and I look forward to seeing how you foster that culture that's collaborative with empathy and bring the best of technology, leveraging the cloud, all your data. So thank you for joining us at Thought Leaders. And next, I'm pleased to introduce our first change agent, Tom Mazzaferro Chief Data Officer of Western Union and before joining Western Union, Tom made his Mark at HSBC and JP Morgan Chase spearheading digital innovation in technology, operations, risk compliance and retail banking. Tom, thank you so much for joining us today. (gentle music) >> Very happy to be here and looking forward to talking to all of you today. So as we look to move organizations to a data-driven capability into the future, there is a lot that needs to be done on the data side, but also how does data connect and enable different business teams and the technology teams into the future? As we look across our data ecosystems and our platforms, and how we modernize that to the cloud in the future, it all needs to basically work together, right? To really be able to drive an organization from a data standpoint, into the future. That includes being able to have the right information with the right quality of data, at the right time to drive informed business decisions, to drive the business forward. As part of that, we actually have partnered with ThoughtSpot to actually bring in the technology to help us drive that. As part of that partnership and it's how we've looked to integrate it into our overall business as a whole. We've looked at, how do we make sure that our business and our professional lives, right? Are enabled in the same ways as our personal lives. So for example, in your personal lives, when you want to go and find something out, what do you do? You go onto google.com or you go onto Bing or you go onto Yahoo and you search for what you want, search to find an answer. ThoughtSpot for us is the same thing, but in the business world. So using ThoughtSpot and other AI capability is it's allowed us to actually enable our overall business teams in our company to actually have our information at our fingertips. So rather than having to go and talk to someone, or an engineer to go pull information or pull data. We actually can have the end users or the business executives, right. Search for what they need, what they want, at the exact time that they actually need it, to go and drive the business forward. This is truly one of those transformational things that we've put in place. On top of that, we are on a journey to modernize our larger ecosystem as a whole. That includes modernizing our underlying data warehouses, our technology, our... The local environments and as we move that, we've actually picked two of our cloud providers going to AWS and to GCP. We've also adopted Snowflake to really drive and to organize our information and our data, then drive these new solutions and capabilities forward. So a big portion of it though is culture. So how do we engage with the business teams and bring the IT teams together, to really help to drive these holistic end-to-end solutions and capabilities, to really support the actual business into the future. That's one of the keys here, as we look to modernize and to really enhance our organizations to become data-driven. This is the key. If you can really start to provide answers to business questions before they're even being asked and to predict based upon different economic trends or different trends in your business, what decisions need to be made and actually provide those answers to the business teams before they're even asking for it. That is really becoming a data-driven organization and as part of that, it really then enables the business to act quickly and take advantage of opportunities as they come in based upon industries, based upon markets, based upon products, solutions or partnerships into the future. These are really some of the keys that become crucial as you move forward, right, into this new age, Especially with COVID. With COVID now taking place across the world, right? Many of these markets, many of these digital transformations are celebrating and are changing rapidly to accommodate and to support customers in these very difficult times. As part of that, you need to make sure you have the right underlying foundation, ecosystems and solutions to really drive those capabilities and those solutions forward. As we go through this journey, both in my career but also each of your careers into the future, right? It also needs to evolve, right? Technology has changed so drastically in the last 10 years, and that change is only accelerating. So as part of that, you have to make sure that you stay up to speed, up to date with new technology changes, both on the platform standpoint, tools, but also what do our customers want, what do our customers need and how do we then service them with our information, with our data, with our platform, and with our products and our services to meet those needs and to really support and service those customers into the future. This is all around becoming a more data-driven organization, such as how do you use your data to support your current business lines, but how do you actually use your information and your data to actually better support your customers, better support your business, better support your employees, your operations teams and so forth. And really creating that full integration in that ecosystem is really when you start to get large dividends from these investments into the future. With that being said, I hope you enjoyed the segment on how to become and how to drive a data-driven organization, and looking forward to talking to you again soon. Thank you. >> Tom, that was great. Thanks so much and now going to have to drag on you for a second. As a change agent you've come in, disrupted and how long have you been at Western Union? >> Only nine months, so just started this year, but there have been some great opportunities to integrate changes and we have a lot more to go, but we're really driving things forward in partnership with our business teams and our colleagues to support those customers going forward. >> Tom, thank you so much. That was wonderful. And now, I'm excited to introduce you to Gustavo Canton, a change agent that I've had the pleasure of working with meeting in Europe and he is a serial change agent. Most recently with Schneider Electric but even going back to Sam's Clubs. Gustavo, welcome. (gentle music) >> So, hey everyone, my name is Gustavo Canton and thank you so much, Cindi, for the intro. As you mentioned, doing transformations is, you know, a high reward situation. I have been part of many transformations and I have led many transformations. And, what I can tell you is that it's really hard to predict the future, but if you have a North Star and you know where you're going, the one thing that I want you to take away from this discussion today is that you need to be bold to evolve. And so, in today, I'm going to be talking about culture and data, and I'm going to break this down in four areas. How do we get started, barriers or opportunities as I see it, the value of AI and also, how you communicate. Especially now in the workforce of today with so many different generations, you need to make sure that you are communicating in ways that are non-traditional sometimes. And so, how do we get started? So, I think the answer to that is you have to start for you yourself as a leader and stay tuned. And by that, I mean, you need to understand, not only what is happening in your function or your field, but you have to be very in tune what is happening in society socioeconomically speaking, wellbeing. You know, the common example is a great example and for me personally, it's an opportunity because the number one core value that I have is wellbeing. I believe that for human potential for customers and communities to grow, wellbeing should be at the center of every decision. And as somebody mentioned, it's great to be, you know, stay in tune and have the skillset and the courage. But for me personally, to be honest, to have this courage is not about not being afraid. You're always afraid when you're making big changes and you're swimming upstream, but what gives me the courage is the empathy part. Like I think empathy is a huge component because every time I go into an organization or a function, I try to listen very attentively to the needs of the business and what the leaders are trying to do. But I do it thinking about the mission of, how do I make change for the bigger workforce or the bigger good despite the fact that this might have perhaps implication for my own self interest in my career. Right? Because you have to have that courage sometimes to make choices that are not well seen, politically speaking, but are the right thing to do and you have to push through it. So the bottom line for me is that, I don't think we're they're transforming fast enough. And the reality is, I speak with a lot of leaders and we have seen stories in the past and what they show is that, if you look at the four main barriers that are basically keeping us behind budget, inability to act, cultural issues, politics and lack of alignment, those are the top four. But the interesting thing is that as Cindi has mentioned, these topic about culture is actually gaining more and more traction. And in 2018, there was a story from HBR and it was about 45%. I believe today, it's about 55%, 60% of respondents say that this is the main area that we need to focus on. So again, for all those leaders and all the executives who understand and are aware that we need to transform, commit to the transformation and set a deadline to say, "Hey, in two years we're going to make this happen. What do we need to do, to empower and enable these change agents to make it happen? You need to make the tough choices. And so to me, when I speak about being bold is about making the right choices now. So, I'll give you examples of some of the roadblocks that I went through as I've been doing transformations, most recently, as Cindi mentioned in Schneider. There are three main areas, legacy mindset and what that means is that, we've been doing this in a specific way for a long time and here is how we have been successful. What worked in the past is not going to work now. The opportunity there is that there is a lot of leaders, who have a digital mindset and they're up and coming leaders that are perhaps not yet fully developed. We need to mentor those leaders and take bets on some of these talents, including young talent. We cannot be thinking in the past and just wait for people, you know, three to five years for them to develop because the world is going in a way that is super-fast. The second area and this is specifically to implementation of AI. It's very interesting to me because just the example that I have with ThoughtSpot, right? We went on implementation and a lot of the way the IT team functions or the leaders look at technology, they look at it from the prism of the prior or success criteria for the traditional BIs, and that's not going to work. Again, the opportunity here is that you need to redefine what success look like. In my case, I want the user experience of our workforce to be the same user experience you have at home. It's a very simple concept and so we need to think about, how do we gain that user experience with these augmented analytics tools and then work backwards to have the right talent, processes, and technology to enable that. And finally and obviously with COVID, a lot of pressure in organizations and companies to do more with less. And the solution that most leaders I see are taking is to just minimize costs sometimes and cut budget. We have to do the opposite. We have to actually invest on growth areas, but do it by business question. Don't do it by function. If you actually invest in these kind of solutions, if you actually invest on developing your talent and your leadership to see more digitally, if you actually invest on fixing your data platform, it's not just an incremental cost. It's actually this investment is going to offset all those hidden costs and inefficiencies that you have on your system, because people are doing a lot of work and working very hard but it's not efficient and it's not working in the way that you might want to work. So there is a lot of opportunity there and just to put in terms of perspective, there have been some studies in the past about, you know, how do we kind of measure the impact of data? And obviously, this is going to vary by organization maturity, there's going to be a lot of factors. I've been in companies who have very clean, good data to work with and I've been with companies that we have to start basically from scratch. So it all depends on your maturity level. But in this study, what I think is interesting is they try to put a tagline or a tag price to what is the cost of incomplete data. So in this case, it's about 10 times as much to complete a unit of work when you have data that is flawed as opposed to having perfect data. So let me put that just in perspective, just as an example, right? Imagine you are trying to do something and you have to do 100 things in a project, and each time you do something, it's going to cost you a dollar. So if you have perfect data, the total cost of that project might be $100. But now let's say you have 80% perfect data and 20% flawed data. By using this assumption that flawed data is 10 times as costly as perfect data, your total costs now becomes $280 as opposed to $100. This just for you to really think about as a CIO, CTO, you know CHRO, CEO, "Are we really paying attention and really closing the gaps that we have on our data infrastructure?" If we don't do that, it's hard sometimes to see the snowball effect or to measure the overall impact, but as you can tell, the price tag goes up very, very quickly. So now, if I were to say, how do I communicate this or how do I break through some of these challenges or some of these barriers, right? I think the key is, I am in analytics, I know statistics obviously and love modeling, and, you know, data and optimization theory, and all that stuff. That's what I came to analytics, but now as a leader and as a change agent, I need to speak about value and in this case, for example, for Schneider. There was this tagline, make the most of your energy. So the number one thing that they were asking from the analytics team was actually efficiency, which to me was very interesting. But once I understood that, I understood what kind of language to use, how to connect it to the overall strategy and basically, how to bring in the right leaders because you need to, you know, focus on the leaders that you're going to make the most progress, you know. Again, low effort, high value. You need to make sure you centralize all the data as you can, you need to bring in some kind of augmented analytics, you know, solution. And finally, you need to make it super-simple for the, you know, in this case, I was working with the HR teams and other areas, so they can have access to one portal. They don't have to be confused and looking for 10 different places to find information. I think if you can actually have those four foundational pillars, obviously under the guise of having a data-driven culture, that's when you can actually make the impact. So in our case, it was about three years total transformation, but it was two years for this component of augmented analytics. It took about two years to talk to, you know, IT, get leadership support, find the budgeting, you know, get everybody on board, make sure the success criteria was correct. And we call this initiative, the people analytics portal. It was actually launched in July of this year and we were very excited and the audience was very excited to do this. In this case, we did our pilot in North America for many, many, many factors but one thing that is really important is as you bring along your audience on this, you know. You're going from Excel, you know, in some cases or Tableu to other tools like, you know, ThoughtSpot. You need to really explain them what is the difference and how this tool can truly replace some of the spreadsheets or some of the views that you might have on these other kinds of tools. Again, Tableau, I think it's a really good tool. There are other many tools that you might have in your toolkit but in my case, personally, I feel that you need to have one portal. Going back to Cindi's points, that really truly enable the end user. And I feel that this is the right solution for us, right? And I will show you some of the findings that we had in the pilot in the last two months. So this was a huge victory and I will tell you why, because it took a lot of effort for us to get to this stage and like I said, it's been years for us to kind of lay the foundation, get the leadership, initiating culture so people can understand, why you truly need to invest on augmented analytics. And so, what I'm showing here is an example of how do we use basically, you know, a tool to capturing video, the qualitative findings that we had, plus the quantitative insights that we have. So in this case, our preliminary results based on our ambition for three main metrics. Hours saved, user experience and adoption. So for hours saved, our ambition was to have 10 hours per week for employee to save on average. User experience, our ambition was 4.5 and adoption 80%. In just two months, two months and a half of the pilot, we were able to achieve five hours per week per employee savings, a user experience for 4.3 out of five and adoption of 60%. Really, really amazing work. But again, it takes a lot of collaboration for us to get to the stage from IT, legal, communications, obviously the operations things and the users. In HR safety and other areas that might be basically stakeholders in this whole process. So just to summarize, this kind of effort takes a lot of energy. You are a change agent, you need to have courage to make this decision and understand that, I feel that in this day and age with all this disruption happening, we don't have a choice. We have to take the risk, right? And in this case, I feel a lot of satisfaction in how we were able to gain all these great resource for this organization and that give me the confident to know that the work has been done and we are now in a different stage for the organization. And so for me, it's just to say, thank you for everybody who has belief, obviously in our vision, everybody who has belief in, you know, the work that we were trying to do and to make the life of our, you know, workforce or customers and community better. As you can tell, there is a lot of effort, there is a lot of collaboration that is needed to do something like this. In the end, I feel very satisfied with the accomplishments of this transformation and I just want to tell for you, if you are going right now in a moment that you feel that you have to swim upstream, you know, work with mentors, work with people in the industry that can help you out and guide you on this kind of transformation. It's not easy to do, it's high effort, but it's well worth it. And with that said, I hope you are well and it's been a pleasure talking to you. Talk to you soon. Take care. >> Thank you, Gustavo. That was amazing. All right, let's go to the panel. (light music) Now I think we can all agree how valuable it is to hear from practitioners and I want to thank the panel for sharing their knowledge with the community. Now one common challenge that I heard you all talk about was bringing your leadership and your teams along on the journey with you. We talk about this all the time and it is critical to have support from the top. Why? Because it directs the middle and then it enables bottoms up innovation effects from the cultural transformation that you guys all talked about. It seems like another common theme we heard is that you all prioritize database decision making in your organizations. And you combine two of your most valuable assets to do that and create leverage, employees on the front lines, and of course the data. Now as as you rightly pointed out, Tom, the pandemic has accelerated the need for really leaning into this. You know, the old saying, if it ain't broke, don't fix it, well COVID has broken everything and it's great to hear from our experts, you know, how to move forward, so let's get right into it. So Gustavo, let's start with you. If I'm an aspiring change agent and let's say I'm a budding data leader, what do I need to start doing? What habits do I need to create for long-lasting success? >> I think curiosity is very important. You need to be, like I said, in tune to what is happening, not only in your specific field, like I have a passion for analytics, I've been doing it for 50 years plus, but I think you need to understand wellbeing of the areas across not only a specific business. As you know, I come from, you know, Sam's Club, Walmart retail. I've been in energy management, technology. So you have to try to push yourself and basically go out of your comfort zone. I mean, if you are staying in your comfort zone and you want to just continuous improvement, that's just going to take you so far. What you have to do is, and that's what I try to do, is I try to go into areas, businesses and transformations, that make me, you know, stretch and develop as a leader. That's what I'm looking to do, so I can help transform the functions, organizations, and do the change management, the essential mindset that's required for this kind of effort. >> Well, thank you for that. That is inspiring and Cindi you love data and the data is pretty clear that diversity is a good business, but I wonder if you can, you know, add your perspectives to this conversation? >> Yeah, so Michelle has a new fan here because she has found her voice. I'm still working on finding mine and it's interesting because I was raised by my dad, a single dad, so he did teach me how to work in a predominantly male environment, but why I think diversity matters more now than ever before and this is by gender, by race, by age, by just different ways of working and thinking, is because as we automate things with AI, if we do not have diverse teams looking at the data, and the models, and how they're applied, we risk having bias at scale. So this is why I think I don't care what type of minority you are, finding your voice, having a seat at the table and just believing in the impact of your work has never been more important and as Michelle said, more possible. >> Great perspectives, thank you. Tom, I want to go to you. So, I mean, I feel like everybody in our businesses is in some way, shape, or form become a COVID expert, but what's been the impact of the pandemic on your organization's digital transformation plans? >> We've seen a massive growth, actually, in our digital business over the last 12 months really, even acceleration, right, once COVID hit. We really saw that in the 200 countries and territories that we operate in today and service our customers in today, that there's been a huge need, right, to send money to support family, to support friends, and to support loved ones across the world. And as part of that we are very honored to be able to support those customers that, across all the centers today, but as part of the acceleration, we need to make sure that we have the right architecture and the right platforms to basically scale, right? To basically support and provide the right kind of security for our customers going forward. So as part of that, we did do some pivots and we did accelerate some of our plans on digital to help support that overall growth coming in and to support our customers going forward, because during these times, during this pandemic, right, this is the most important time and we need to support those that we love and those that we care about. And doing that some of those ways is actually by sending money to them, support them financially. And that's where really our products and our services come into play that, you know, and really support those families. So, it was really a great opportunity for us to really support and really bring some of our products to the next level and supporting our business going forward. >> Awesome, thank you. Now, I want to come back to Gustavo. Tom, I'd love for you to chime in too. Did you guys ever think like you were pushing the envelope too much in doing things with data or the technology that it was just maybe too bold, maybe you felt like at some point it was failing, or you're pushing your people too hard? Can you share that experience and how you got through it? >> Yeah, the way I look at it is, you know, again, whenever I go to an organization, I ask the question, "Hey, how fast you would like to conform?" And, you know, based on the agreements on the leadership and the vision that we want to take place, I take decisions and I collaborate in a specific way. Now, in the case of COVID, for example, right, it forces us to remove silos and collaborate in a faster way. So to me, it was an opportunity to actually integrate with other areas and drive decisions faster, but make no mistake about it, when you are doing a transformation, you are obviously trying to do things faster than sometimes people are comfortable doing, and you need to be okay with that. Sometimes you need to be okay with tension or you need to be okay, you know, debating points or making repetitive business cases until people connect with the decision because you understand and you are seeing that, "Hey, the CEO is making a one, two year, you know, efficiency goal. The only way for us to really do more with less is for us to continue this path. We can not just stay with the status quo, we need to find a way to accelerate the transformation." That's the way I see it. >> How about Utah, we were talking earlier with Sudheesh and Cindi about that bungee jumping moment. What can you share? >> Yeah, you know, I think you hit upon it. Right now, the pace of change will be the slowest pace that you see for the rest of your career. So as part of that, right, this is what I tell my team, is that you need to be, you need to feel comfortable being uncomfortable. Meaning that we have to be able to basically scale, right? Expand and support the ever changing needs in the marketplace and industry and our customers today, and that pace of change that's happening, right? And what customers are asking for and the competition in the marketplace, it's only going to accelerate. So as part of that, you know, as you look at how you're operating today in your current business model, right? Things are only going to get faster. So you have to plan and to align and to drive the actual transformation, so that you can scale even faster into the future. So it's part of that, that's what we're putting in place here, right? It's how do we create that underlying framework and foundation that allows the organization to basically continue to scale and evolve into the future? >> Yeah, we're definitely out of our comfort zones, but we're getting comfortable with it. So Cindi, last question, you've worked with hundreds of organizations and I got to believe that, you know, some of the advice you gave when you were at Gartner, which was pre-COVID, maybe sometimes clients didn't always act on it. You know, not my watch or for whatever, variety of reasons, but it's being forced on them now. But knowing what you know now that, you know, we're all in this isolation economy, how would you say that advice has changed? Has it changed? What's your number one action and recommendation today? >> Yeah, well first off, Tom, just freaked me out. What do you mean, this is the slowest ever? Even six months ago I was saying the pace of change in data and analytics is frenetic. So, but I think you're right, Tom, the business and the technology together is forcing this change. Now, Dave, to answer your question, I would say the one bit of advice, maybe I was a little more very aware of the power in politics and how to bring people along in a way that they are comfortable and now I think it's, you know what, you can't get comfortable. In fact, we know that the organizations that were already in the cloud have been able to respond and pivot faster. So, if you really want to survive, as Tom and Gustavo said, get used to being uncomfortable. The power and politics are going to happen, break the rules, get used to that and be bold. Do not be afraid to tell somebody they're wrong and they're not moving fast enough. I do think you have to do that with empathy, as Michelle said and Gustavo, I think that's one of the key words today besides the bungee jumping. So I want to know where Sudheesh is going to go bungee jumping. (all chuckling) >> Guys, fantastic discussion, really. Thanks again to all the panelists and the guests, it was really a pleasure speaking with you today. Really, virtually all of the leaders that I've spoken to in theCUBE program recently, they tell me that the pandemic is accelerating so many things. Whether it's new ways to work, we heard about new security models and obviously the need for cloud. I mean, all of these things are driving true enterprise-wide digital transformation, not just as I said before, lip service. You know, sometimes we minimize the importance and the challenge of building culture and in making this transformation possible. But when it's done right, the right culture is going to deliver tournament results. You know, what does that mean? Getting it right. Everybody's trying to get it right. My biggest takeaway today is it means making data part of the DNA of your organization. And that means making it accessible to the people in your organization that are empowered to make decisions, decisions that can drive new revenue, cut costs, speed access to critical care, whatever the mission is of your organization, data can create insights and informed decisions that drive value. Okay, let's bring back Sudheesh and wrap things up. Sudheesh, please bring us home. >> Thank you, thank you, Dave. Thank you, theCUBE team, and thanks goes to all of our customers and partners who joined us, and thanks to all of you for spending the time with us. I want to do three quick things and then close it off. The first thing is I want to summarize the key takeaways that I heard from all four of our distinguished speakers. First, Michelle, I will simply put it, she said it really well. That is be brave and drive, don't go for a drive alone. That is such an important point. Often times, you know the right thing that you have to do to make the positive change that you want to see happen, but you wait for someone else to do it, not just, why not you? Why don't you be the one making that change happen? That's the thing that I picked up from Michelle's talk. Cindi talked about finding, the importance of finding your voice. Taking that chair, whether it's available or not, and making sure that your ideas, your voice is heard and if it requires some force, then apply that force. Make sure your ideas are heard. Gustavo talked about the importance of building consensus, not going at things all alone sometimes. The importance of building the quorum, and that is critical because if you want the changes to last, you want to make sure that the organization is fully behind it. Tom, instead of a single takeaway, what I was inspired by is the fact that a company that is 170 years old, 170 years old, 200 companies and 200 countries they're operating in and they were able to make the change that is necessary through this difficult time in a matter of months. If they could do it, anyone could. The second thing I want to do is to leave you with a takeaway, that is I would like you to go to ThoughtSpot.com/nfl because our team has made an app for NFL on Snowflake. I think you will find this interesting now that you are inspired and excited because of Michelle's talk. And the last thing is, please go to ThoughtSpot.com/beyond. Our global user conference is happening in this December. We would love to have you join us, it's, again, virtual, you can join from anywhere. We are expecting anywhere from five to 10,000 people and we would love to have you join and see what we've been up to since last year. We have a lot of amazing things in store for you, our customers, our partners, our collaborators, they will be coming and sharing. We'll be sharing things that we have been working to release, something that will come out next year. And also some of the crazy ideas our engineers have been cooking up. All of those things will be available for you at ThoughtSpot Beyond. Thank you, thank you so much.

>> Data is at the heart of transformation and the change every company needs to succeed, but it takes more than new technology. It's about teams, talent and cultural change. Empowering everyone on the front lines to make decisions all at the speed of digital. The transformation starts with you. It's time to lead the way it's time for Thought leaders. >> Welcome to "Thought Leaders" a digital event brought to you by ThoughtSpot. My name is Dave Vellante. The purpose of this day is to bring industry leaders and experts together to really try and understand the important issues around digital transformation. We have an amazing lineup of speakers and our goal is to provide you with some best practices that you can bring back and apply to your organization. Look, data is plentiful, but insights are not. ThoughtSpot is disrupting analytics by using search and machine intelligence to simplify data analysis and really empower anyone with fast access to relevant data. But in the last 150 days, we've had more questions than answers. Creating an organization that puts data and insights at their core requires not only modern technology, but leadership, a mindset and a culture that people often refer to as data-driven. What does that mean? How can we equip our teams with data and fast access to quality information that can turn insights into action. And today we're going to hear from experienced leaders who are transforming their organizations with data, insights and creating digital first cultures. But before we introduce our speakers, I'm joined today by two of my co-hosts from ThoughtSpot first chief data strategy officer at the ThoughtSpot is Cindi Howson. Cindi is an analytics and BI expert with 20 plus years experience and the author of "Successful Business Intelligence "Unlock the Value of BI & Big Data." Cindi was previously the lead analyst at Gartner for the data and analytics magic quadrant. And early last year, she joined ThoughtSpot to help CDOs and their teams understand how best to leverage analytics and AI for digital transformation. Cindi, great to see you welcome to the show. >> Thank you, Dave. Nice to join you virtually. >> Now our second cohost and friend of the cube is ThoughtSpot CEO Sudheesh Nair Hello, Sudheesh how are you doing today? >> I'm well Dave, it's good to talk to you again. >> It's great to see you thanks so much for being here. Now Sudheesh please share with us why this discussion is so important to your customers and of course, to our audience and what they're going to learn today. (upbeat music) >> Thanks, Dave. I wish you were there to introduce me into every room and that I walk into because you have such an amazing way of doing it. Makes me feel all so good. Look, since we have all been cooped up in our homes, I know that the vendors like us, we have amped up our sort of effort to reach out to you with invites for events like this. So we are getting very more invites for events like this than ever before. So when we started planning for this, we had three clear goals that we wanted to accomplish. And our first one that when you finish this and walk away, we want to make sure that you don't feel like it was a waste of time. We want to make sure that we value your time and this is going to be useful. Number two, we want to put you in touch with industry leaders and thought leaders, generally good people that you want to hang around with long after this event is over. And number three, as we plan through this, we are living through these difficult times. We want an event to be this event, to be more of an uplifting and inspiring event too. Now, the challenge is how do you do that with the team being change agents because change and as much as we romanticize it, it is not one of those uplifting things that everyone wants to do, or like to do. The way I think of it sort of like a, if you've ever done bungee jumping and it's like standing on the edges waiting to make that one more step, all you have to do is take that one step and gravity will do the rest, but that is the hardest step to take. Change requires a lot of courage. And when we are talking about data and analytics, which is already like such a hard topic, not necessarily an uplifting and positive conversation in most businesses, it is somewhat scary. Change becomes all the more difficult. Ultimately change requires courage. Courage to first of all challenge the status quo. People sometimes are afraid to challenge the status quo because they are thinking that maybe I don't have the power to make the change that the company needs. Sometimes they feel like I don't have the skills. Sometimes they may feel that I'm probably not the right person do it. Or sometimes the lack of courage manifest itself as the inability to sort of break the silos that are formed within the organizations, when it comes to data and insights that you talked about. There are people in the company who are going to hog the data because they know how to manage the data, how to inquire and extract. They know how to speak data. They have the skills to do that. But they are not the group of people who have sort of the knowledge, the experience of the business to ask the right questions off the data. So there is the silo of people with the answers, and there is a silo of people with the questions. And there is gap. This sort of silos are standing in the way of making that necessary change that we all know the business needs. And the last change to sort of bring an external force sometimes. It could be a tool. It could be a platform, it could be a person, it could be a process, but sometimes no matter how big the company is or how small the company is, you may need to bring some external stimuli to start the domino of the positive changes that are necessary. The group of people that we are brought in, the four people, including Cindi, that you will hear from today are really good at practically telling you how to make that step, how to step off that edge, how to dress the rope, that you will be safe and you're going to have fun. You will have that exhilarating feeling of jumping, for a bungee jump. All four of them are exceptional, but my honor is to introduce Michelle and she's our first speaker. Michelle, I am very happy after watching her presentation and reading our bio, that there are no country vital worldwide competition for cool patterns, because she will beat all of us because when her children were small, they were probably into Harry Potter and Disney. She was managing a business and leading change there. And then as her kids grew up and got to that age where they like football and NFL, guess what? She's the CIO of NFL. What a cool mom? I am extremely excited to see what she's going to talk about. I've seen the slides, tons of amazing pictures. I'm looking to see the context behind it. I'm very thrilled to make the acquaintance of Michelle and looking forward to her talk next. Welcome Michelle, it's over to you. (upbeat music) >> I'm delighted to be with you all today to talk about thought leadership. And I'm so excited that you asked me to join you because today I get to be a quarterback. I always wanted to be one. And I thought this is about as close as I'm ever going to get. So I want to talk to you about quarterbacking, our digital revolution using insights data. And of course, as you said, leadership, first a little bit about myself, a little background, as I said, I always wanted to play football. And this is something that I wanted to do since I was a child. But when I grew up, girls didn't get to play football. I'm so happy that that's changing and girls are now doing all kinds of things that they didn't get to do before. Just this past weekend on an NFL field, we had a female coach on two sidelines and a female official on the field. I'm a lifelong fan and student of the game of football. I grew up in the South. You can tell from the accent. And in the South football is like a religion and you pick sides. I chose Auburn university working in the athletic department. So I'm Testament to you can start the journey can be long. It took me many, many years to make it into professional sports. I graduated in 1987 and my little brother, well, not actually not so little. He played offensive line for the Alabama Crimson Tide. And for those of you who know SCC football, you know this is a really big rivalry. And when you choose sides, your family is divided. So it's kind of fun for me to always tell the story that my dad knew his kid would make it to the NFL. He just bet on the wrong one. My career has been about bringing people together for memorable moments at some of America's most iconic brands, delivering memories and amazing experiences that delight from Universal Studios, Disney to my current position as CIO of the NFL. In this job I'm very privileged to have the opportunity to work with the team that gets to bring America's game to millions of people around the world. Often I'm asked to talk about how to create amazing experiences for fans, guests, or customers. But today I really wanted to focus on something different and talk to you about being behind the scenes and backstage because behind every event, every game, every awesome moment is execution, precise, repeatable execution. And most of my career has been behind the scenes doing just that assembling teams to execute these plans. And the key way that companies operate at these exceptional levels is making good decisions, the right decisions at the right time and based upon data so that you can translate the data into intelligence and be a data-driven culture. Using data and intelligence is an important way that world-class companies do differentiate themselves. And it's the lifeblood of collaboration and innovation. Teams that are working on delivering these kinds of world casts experiences are often seeking out and leveraging next-generation technologies and finding new ways to work. I've been fortunate to work across three decades of emerging experiences, which each required emerging technologies to execute a little bit first about Disney in the 90s, I was at Disney leading a project called destination Disney, which it's a data project. It was a data project, but it was CRM before CRM was even cool. And then certainly before anything like a data-driven culture was ever brought up, but way back then we were creating a digital backbone that enabled many technologies for the things that you see today, like the magic band, Disney's magical express. My career at Disney began in finance, but Disney was very good about rotating you around. And it was during one of these rotations that I became very passionate about data. I kind of became a pain in the butt to the IT team asking for data more and more data. And I learned that all of that valuable data was locked up in our systems. All of our point of sales systems, our reservation systems, our operation systems. And so I became a shadow IT person in marketing, ultimately leading to moving into IT. And I haven't looked back since. In the early two thousands, I was at universal studios theme park as their CIO preparing for and launching "The Wizarding World of Harry Potter" bringing one of history's most memorable characters to life required many new technologies and a lot of data. Our data and technologies were embedded into the rides and attractions. I mean, how do you really think a wan selects you at a wan shop. As today at the NFL? I am constantly challenged to do leading edge technologies, using things like sensors, AI, machine learning, and all new communication strategies and using data to drive everything from player performance, contracts, to where we build new stadiums and hold events with this year being the most challenging yet rewarding year in my career at the NFL. In the middle of a global pandemic, the way we are executing on our season is leveraging data from contract tracing devices joined with testing data, talk about data, actually enabling your business without it w wouldn't be having a season right now. I'm also on the board of directors of two public companies where data and collaboration are paramount. First RingCentral, it's a cloud based unified communications platform and collaboration with video message and phone all in one solution in the cloud and Quotient technologies whose product is actually data. The tagline at Quotient is the result in knowing I think that's really important because not all of us are data companies where your product is actually data, but we should operate more like your product is data. I'd also like to talk to you about four areas of things to think about as thought leaders in your companies. First just hit on it is change how to be a champion and a driver of change. Second, how do you use data to drive performance for your company and measure performance of your company? Third, how companies now require intense collaboration to operate. And finally, how much of this is accomplished through solid data driven decisions. First let's hit on change. I mean, it's evident today more than ever, that we are in an environment of extreme change. I mean, we've all been at this for years and as technologists we've known it, believed it, lived it and thankfully for the most part, knock on what we were prepared for it. But this year everyone's cheese was moved. All the people in the back rooms, IT, data architects and others were suddenly called to the forefront because a global pandemic has turned out to be the thing that is driving intense change in how people work and analyze their business. On March 13th, we closed our office at the NFL in the middle of preparing for one of our biggest events, our kickoff event, the 2020 draft. We went from planning a large event in Las Vegas under the bright lights, red carpet stage to smaller events in club facilities. And then ultimately to one where everyone coaches GM's prospects and even our commissioner were at home in their basements. And we only had a few weeks to figure it out. I found myself for the first time being in the live broadcast event space, talking about bungee jumping. This is really what it felt like. It was one in which no one felt comfortable because it had not been done before. But leading through this, I stepped up, but it was very scary. It was certainly very risky, but it ended up being all so rewarding when we did it. And as a result of this, some things will change forever. Second, managing performance. I mean, data should inform how you're doing and how to get your company to perform at it's level. Highest level. As an example, the NFL has always measured performance, obviously, and it is one of the purest examples of how performance directly impacts outcome. I mean, you can see performance on the field. You can see points being scored in stats, and you immediately know that impact those with the best stats usually when the games. The NFL has always recorded stats since the beginning of time here at the NFL a little this year is our 101 year and athletes ultimate success as a player has also always been greatly impacted by his stats. But what has changed for us is both how much more we can measure and the immediacy with which it can be measured. And I'm sure in your business it's the same. The amount of data you must have has got to have quadrupled and how fast you need it and how quickly you need to analyze it is so important. And it's very important to break the silos between the keys, to the data and the use of the data. Our next generation stats platform is taking data to a next level. It's powered by Amazon web services. And we gathered this data real-time from sensors that are on players' bodies. We gather it in real time, analyze it, display it online and on broadcast. And of course it's used to prepare week to week in addition to what is a normal coaching plan would be. We can now analyze, visualize route patterns, speed match-ups, et cetera. So much faster than ever before. We're continuing to roll out sensors too that will gather more and more information about a player's performance as it relates to their health and safety. The third trend is really, I think it's a big part of what we're feeling today and that is intense collaboration. And just for sort of historical purposes, it's important to think about for those of you that are IT professionals and developers, more than 10 years ago, agile practices began sweeping companies where small teams would work together rapidly in a very flexible, adaptive, and innovative way. And it proved to be transformational. However, today, of course, that is no longer just small teams, the next big wave of change. And we've seen it through this pandemic is that it's the whole enterprise that must collaborate and be agile. If I look back on my career, when I was at Disney, we owned everything 100%. We made a decision, we implemented it. We were a collaborative culture, but it was much easier to push change because you own the whole decision. If there was buy-in from the top down, you've got the people from the bottom up to do it and you executed. At Universal we were a joint venture. Our attractions and entertainment was licensed. Our hotels were owned and managed by other third parties. So influence and collaboration and how to share across companies became very important. And now here I am at the NFL and even the bigger ecosystem, we have 32 clubs that are all separate businesses. 31 different stadiums that are owned by a variety of people. We have licensees, we have sponsors, we have broadcast partners. So it seems that as my career has evolved, centralized control has gotten less and less and has been replaced by intense collaboration, not only within your own company, but across companies. The ability to work in a collaborative way across businesses and even other companies that has been a big key to my success in my career. I believe this whole vertical integration and big top-down decision-making is going by the wayside in favor of ecosystems that require cooperation yet competition to co-exist. I mean, the NFL is a great example of what we call co-op petition, which is cooperation and competition. We're in competition with each other, but we cooperate to make the company the best it can be. And at the heart of these items really are data driven decisions and culture. Data on its own isn't good enough. You must be able to turn it to insights. Partnerships between technology teams who usually hold the keys to the raw data and business units who have the knowledge to build the right decision models is key. If you're not already involved in this linkage, you should be. Data mining isn't new for sure. The availability of data is quadrupling and it's everywhere. How do you know what to even look at? How do you know where to begin? How do you know what questions to ask it's by using the tools that are available for visualization and analytics and knitting together strategies of the company. So it begins with first of all, making sure you do understand the strategy of the company. So in closing, just to wrap up a bit, many of you joined today, looking for thought leadership on how to be a change agent, a change champion, and how to lead through transformation. Some final thoughts are be brave and drive. Don't do the ride along program. It's very important to drive. Driving can be high risk, but it's also high reward. Embracing the uncertainty of what will happen is how you become brave. Get more and more comfortable with uncertainty, be calm and let data be your map on your journey. Thanks. >> Michelle, tank you so much. So you and I share a love of data and a love of football. You said you want to be the quarterback. I'm more an old line person. (Michelle and Cindi laughing) >> Well, then I can do my job without you. >> Great. And I'm getting the feeling now, Sudheesh is talking about bungee jumping. My vote is when we're past this pandemic, we both take them to the Delaware water gap and we do the cliff jumping. >> That sounds good, I'll watch. >> Yeah, you'll watch, okay. So Michelle, you have so many stakeholders when you're trying to prioritize the different voices. You have the players, you have the owners, you have the league, as you mentioned, the broadcasters, your partners here and football mamas like myself. How do you prioritize when there's so many different stakeholders that you need to satisfy? >> I think balancing across stakeholders starts with, aligning on a mission. And if you spend a lot of time understanding where everyone's coming from, and you can find the common thread that ties them all together, you sort of do get them to naturally prioritize their work. And I think that's very important. So for us, at the NFL and even at Disney, it was our core values and our core purpose, is so well known and when anything challenges that we're able to sort of lay that out. But as a change agent, you have to be very empathetic. And I would say empathy is probably your strongest skill if you're a change agent. And that means listening to every single stakeholder, even when they're yelling at you, even when they're telling you your technology doesn't work and you know that it's user error, or even when someone is just emotional about what's happening to them and that they're not comfortable with it. So I think being empathetic and having a mission and understanding it is sort of how I prioritize and balance. >> Yeah, empathy, a very popular word this year. I can imagine those coaches and owners yelling. So, thank you for your leadership here. So Michelle, I look forward to discussing this more with our other customers and disruptors joining us in a little bit. (upbeat music) So we're going to take a hard pivot now and go from football to Chernobyl. Chernobyl what went wrong? 1986, as the reactors were melting down, they had the data to say, this is going to be catastrophic. And yet the culture said, "no, we're perfect, hide it. "Don't dare tell anyone." Which meant they went ahead and had celebrations in Kiev. Even though that increased the exposure, the additional thousands getting cancer and 20,000 years before the ground around there can even be inhabited again, this is how powerful and detrimental a negative culture, a culture that is unable to confront the brutal facts that hides data. This is what we have to contend with. And this is why I want you to focus on having, fostering a data-driven culture. I don't want you to be a laggard. I want you to be a leader in using data to drive your digital transformation. So I'll talk about culture and technology. Is it really two sides of the same coin, real-world impacts and then some best practices you can use to and innovate your culture. Now, oftentimes I would talk about culture and I talk about technology. And recently a CDO said to me, "Cindi, I actually think this is two sides "of the same coin. "One reflects the other." What do you think? Let me walk you through this. So let's take a laggard. What does the technology look like? Is it based on 1990s BI and reporting largely parametrized reports, on premises data, warehouses, or not even that operational reports at best one enterprise data warehouse, very slow moving and collaboration is only email. What does that culture tell you? Maybe there's a lack of leadership to change, to do the hard work that Sudheesh referred to, or is there also a culture of fear, afraid of failure, resistance to change complacency. And sometimes that complacency it's not because people are lazy. It's because they've been so beaten down every time a new idea is presented. It's like, no we're measured on least cost to serve. So politics and distrust, whether it's between business and IT or individual stakeholders is the norm. So data is hoarded. Let's contrast that with a leader, a data and analytics leader, what is their technology look like? Augmented analytics search and AI driven insights, not on premises, but in the cloud and maybe multiple clouds. And the data is not in one place, but it's in a data Lake and in a data warehouse, a logical data warehouse. The collaboration is being a newer methods, whether it's Slack or teams allowing for that real time decisioning or investigating a particular data point. So what is the culture in the leaders? It's transparent and trust. There is a trust that data will not be used to punish that there is an ability to confront the bad news. It's innovation, valuing innovation in pursuit of the company goals, whether it's the best fan experience and player safety in the NFL or best serving your customers. It's innovative and collaborative. There's none of this. Oh, well, I didn't invent that. I'm not going to look at that. There's still pride of ownership, but it's collaborating to get to a better place faster. And people feel empowered to present new ideas to fail fast, and they're energized knowing that they're using the best technology and innovating at the pace that business requires. So data is democratized. And democratized, not just for power users or analysts, but really at the point of impact what we like to call the new decision-makers or really the frontline workers. So Harvard business review partnered with us to develop this study to say, just how important is this? We've been working at BI and analytics as an industry for more than 20 years. Why is it not at the front lines? Whether it's a doctor, a nurse, a coach, a supply chain manager, a warehouse manager, a financial services advisor. Everyone said that if our 87% said, they would be more successful if frontline workers were empowered with data driven insights, but they recognize they need new technology to be able to do that. It's not about learning hard tools. The sad reality, only 20% of organizations are actually doing this. These are the data-driven leaders. So this is the culture in technology. How did we get here? It's because state-of-the-art keeps changing. So the first-generation BI and analytics platforms were deployed on premises on small datasets, really just taking data out of ERP systems that were also on premises. And state-of-the-art was maybe getting a management report, an operational report. Over time visual-based data discovery vendors disrupted these traditional BI vendors, empowering now analysts to create visualizations with the flexibility on a desktop, sometimes larger data, sometimes coming from a data warehouse. The current state of the art though, Gartner calls it augmented analytics at ThoughtSpot, we call it search and AI driven analytics. And this was pioneered for large scale datasets, whether it's on premises or leveraging the cloud data warehouses. And I think this is an important point. Oftentimes you, the data and analytics leaders will look at these two components separately, but you have to look at the BI and analytics tier in lockstep with your data architectures to really get to the granular insights and to leverage the capabilities of AI. Now, if you've never seen ThoughtSpot, I'll just show you what this looks like. Instead of somebody hard coding, a report it's typing in search keywords and very robust keywords contains rank top bottom, getting to a visual visualization that then can be pinned to an existing Pin board that might also contain insights generated by an AI engine. So it's easy enough for that new decision maker, the business user, the non analyst to create themselves. Modernizing the data and analytics portfolio is hard because the pace of change has accelerated. You use to be able to create an investment place a bet for maybe 10 years, a few years ago, that time horizon was five years, now it's maybe three years and the time to maturity has also accelerated. So you have these different components, the search and AI tier, the data science tier, data preparation and virtualization. But I would also say equally important is the cloud data warehouse and pay attention to how well these analytics tools can unlock the value in these cloud data warehouses. So ThoughtSpot was the first to market with search and AI driven insights. Competitors have followed suit, but be careful if you look at products like power BI or SAP analytics cloud, they might demo well, but do they let you get to all the data without moving it in products like Snowflake, Amazon Redshift, or Azure synapse or Google big query, they do not. They require you to move it into a smaller in memory engine. So it's important how well these new products inter operate. the pace of change, its acceleration Gartner recently predicted that by 2022, 65% of analytical queries will be generated using search or NLP or even AI. And that is roughly three times the prediction they had just a couple years ago. So let's talk about the real world impact of culture. And if you read any of my books or used any of the maturity models out there, whether the Gartner IT score that I worked on, or the data warehousing Institute also has the money surety model. We talk about these five pillars to really become data-driven. As Michelle, I spoke about it's focusing on the business outcomes, leveraging all the data, including new data sources, it's the talent, the people, the technology, and also the processes. And often when I would talk about the people and the talent, I would lump the culture as part of that. But in the last year, as I've traveled the world and done these digital events for Thought leaders, you have told me now culture is absolutely so important. And so we've pulled it out as a separate pillar. And in fact, in polls that we've done in these events, look at how much more important culture is as a barrier to becoming data-driven it's three times as important as any of these other pillars. That's how critical it is. And let's take an example of where you can have great data, but if you don't have the right culture, there's devastating impacts. And I will say, I have been a loyal customer of Wells Fargo for more than 20 years. But look at what happened in the face of negative news with data, it said, "hey, we're not doing good cross selling, "customers do not have both a checking account "and a credit card and a savings account and a mortgage." They opened fake accounts facing billions in fines, change in leadership that even the CEO attributed to a toxic sales culture, and they're trying to fix this. But even recently there's been additional employee backlash saying the culture has not changed. Let's contrast that with some positive examples, Medtronic, a worldwide company in 150 countries around the world. They may not be a household name to you, but if you have a loved one or yourself, you have a pacemaker, spinal implant diabetes, you know this brand. And at the start of COVID when they knew their business would be slowing down, because hospitals would only be able to take care of COVID patients. They took the bold move of making their IP for ventilators publicly available. That is the power of a positive culture. Or Verizon, a major telecom organization looking at late payments of their customers. And even though the U.S federal government said, "well, you can't turn them off. They said, "we'll extend that even beyond "the mandated guidelines." And facing a slow down in the business because of the tough economy, they said, you know what? "We will spend the time up skilling our people, "giving them the time to learn more "about the future of work, the skills and data "and analytics," for 20,000 of their employees, rather than furloughing them. That is the power of a positive culture. So how can you transform your culture to the best in class? I'll give you three suggestions, bring in a change agent, identify the relevance, or I like to call it WIFM and organize for collaboration. So the CDO, whatever your title is, chief analytics officer, chief digital officer, you are the most important change agent. And this is where you will hear that oftentimes a change agent has to come from outside the organization. So this is where, for example, in Europe, you have the CDO of Just Eat a takeout food delivery organization coming from the airline industry or in Australia, National Australian bank, taking a CDO within the same sector from TD bank going to NAB. So these change agents come in disrupt. It's a hard job. As one of you said to me, it often feels like Sisyphus. I make one step forward and I get knocked down again. I get pushed back. It is not for the faint of heart, but it's the most important part of your job. The other thing I'll talk about is WIFM. What is in it for me? And this is really about understanding the motivation, the relevance that data has for everyone on the frontline, as well as those analysts, as well as the executives. So if we're talking about players in the NFL, they want to perform better and they want to stay safe. That is why data matters to them. If we're talking about financial services, this may be a wealth management advisor. Okay we could say commissions, but it's really helping people have their dreams come true, whether it's putting their children through college or being able to retire without having to work multiple jobs still into your 70s or 80s for the teachers, teachers, you ask them about data. They'll say we don't, we don't need that. I care about the student. So if you can use data to help a student perform better, that is WIFM. And sometimes we spend so much time talking the technology, we forget what is the value we're trying to deliver with it. And we forget the impact on the people that it does require change. In fact, the Harvard business review study found that 44% said lack of change management is the biggest barrier to leveraging both new technology, but also being empowered to act on those data-driven insights. The third point organize for collaboration. This does require diversity of thought, but also bringing the technology, the data and the business people together. Now there's not a single one size fits all model for data and analytics. At one point in time, even having a BICC, a BI competency center was considered state-of-the-art. Now for the biggest impact what I recommend is that you have a federated model centralized for economies of scale. That could be the common data, but then in bed, these evangelists, these analysts of the future within every business unit, every functional domain. And as you see this top bar, all models are possible, but the hybrid model has the most impact, the most leaders. So as we look ahead to the months ahead, to the year ahead an exciting time, because data is helping organizations better navigate a tough economy, lock in the customer loyalty. And I look forward to seeing how you foster that culture that's collaborative with empathy and bring the best of technology, leveraging the cloud, all your data. So thank you for joining us at Thought Leaders. And next I'm pleased to introduce our first change agent, Tom Mazzaferro chief data officer of Western union. And before joining Western union, Tom made his Mark at HSBC and JPMorgan Chase spearheading digital innovation in technology, operations, risk compliance, and retail banking. Tom, thank you so much for joining us today. (upbeat music) >> Very happy to be here and looking forward to talking to all of you today. So as we look to move organizations to a data-driven, capability into the future, there is a lot that needs to be done on the data side, but also how does data connect and enable different business teams and technology teams into the future. As you look across, our data ecosystems and our platforms and how we modernize that to the cloud in the future, it all needs to basically work together, right? To really be able to drive and over the shift from a data standpoint, into the future, that includes being able to have the right information with the right quality of data, at the right time to drive informed business decisions, to drive the business forward. As part of that, we actually have partnered with ThoughtSpot, to actually bring in the technology to help us drive that as part of that partnership. And it's how we've looked to integrate it into our overall business as a whole we've looked at how do we make sure that our business and our professional lives right, are enabled in the same ways as our personal lives. So for example, in your personal lives, when you want to go and find something out, what do you do? You go onto google.com or you go on to Bing we go onto Yahoo and you search for what you want search to find and answer. ThoughtSpot for us as the same thing, but in the business world. So using ThoughtSpot and other AI capability it's allowed us to actually, enable our overall business teams in our company to actually have our information at our fingertips. So rather than having to go and talk to someone or an engineer to go pull information or pull data, we actually can have the end-users or the business executives, right. Search for what they need, what they want at the exact time that action need it to go and drive the business forward. This is truly one of those transformational things that we've put in place. On top of that, we are on the journey to modernize our larger ecosystem as a whole. That includes modernizing our underlying data warehouses, our technology, or our Eloqua environments. And as we move that, we've actually picked two of our cloud providers going to AWS and GCP. We've also adopted Snowflake to really drive and to organize our information and our data then drive these new solutions and capabilities forward. So they portion of us though is culture. So how do we engage with the business teams and bring the IT teams together to really drive these holistic end to end solutions and capabilities to really support the actual business into the future? That's one of the keys here, as we look to modernize and to really enhance our organizations to become data-driven, this is the key. If you can really start to provide answers to business questions before they're even being asked and to predict based upon different economic trends or different trends in your business, what does this is maybe be made and actually provide those answers to the business teams before they're even asking for it, that is really becoming a data-driven organization. And as part of that, it's really then enables the business to act quickly and take advantage of opportunities as they come in based upon, industries based upon markets, based upon products, solutions, or partnerships into the future. These are really some of the keys that become crucial as you move forward, right, into this new age, especially with COVID. With COVID now taking place across the world, right? Many of these markets, many of these digital transformations are accelerating and are changing rapidly to accommodate and to support customers in these very difficult times, as part of that, you need to make sure you have the right underlying foundation ecosystems and solutions to really drive those capabilities and those solutions forward. As we go through this journey, both of my career, but also each of your careers into the future, right? It also needs to evolve, right? Technology has changed so drastically in the last 10 years, and that change is only accelerating. So as part of that, you have to make sure that you stay up to speed, up to date with new technology changes both on the platform standpoint tools, but also what do our customers want? What do our customers need and how do we then service them with our information, with our data, with our platform and with our products and our services to meet those needs and to really support and service those customers into the future. This is all around becoming a more data organization such as how do you use your data to support the current business lines, but how do you actually use your information, your data to actually put a better support your customers, better support your business, better support your employees, your operations teams, and so forth, and really creating that full integration in that ecosystem is really when you start to get large dividends from this investments into the future. But that being said, hope you enjoy the segment on how to become and how to drive it data driven organization. And, looking forward to talking to you again soon. Thank you. >> Tom that was great thanks so much. Now I'm going to have to brag on you for a second as a change agent you've come in disrupted and how long have you been at Western union? >> Only nine months, so just started this year, but, doing some great opportunities and great changes. And we have a lot more to go, but, we're really driving things forward in partnership with our business teams and our colleagues to support those customers going forward. >> Tom, thank you so much. That was wonderful. And now I'm excited to introduce you to Gustavo Canton, a change agent that I've had the pleasure of working with meeting in Europe, and he is a serial change agent, most recently with Schneider electric, but even going back to Sam's clubs, Gustavo welcome. (upbeat music) >> So, hey everyone, my name is Gustavo Canton and thank you so much, Cindi, for the intro, as you mentioned, doing transformations is high effort, high reward situation. I have empowered many transformations and I have led many transformations. And what I can tell you is that it's really hard to predict the future, but if you have a North star and where you're going, the one thing that I want you to take away from this discussion today is that you need to be bold to evolve. And so in today, I'm going to be talking about culture and data, and I'm going to break this down in four areas. How do we get started barriers or opportunities as I see it, the value of AI, and also, how do you communicate, especially now in the workforce of today with so many different generations, you need to make sure that you are communicating in ways that are non-traditional sometimes. And so how do we get started? So I think the answer to that is you have to start for you yourself as a leader and stay tuned. And by that, I mean, you need to understand not only what is happening in your function or your field, but you have to be varying into what is happening in society, socioeconomically speaking wellbeing. The common example is a great example. And for me personally, it's an opportunity because the one core value that I have is well-being, I believe that for human potential, for customers and communities to grow wellbeing should be at the center of every decision. And as somebody mentioned is great to be, stay in tune and have the skillset and the courage. But for me personally, to be honest, to have this courage is not about not being afraid. You're always afraid when you're making big changes when you're swimming upstream, but what gives me the courage is the empathy part. Like I think empathy is a huge component because every time I go into an organization or a function, I try to listen very attentively to the needs of the business and what the leaders are trying to do. What I do it thinking about the mission of how do I make change for the bigger, workforce? for the bigger good. Despite this fact that this might have a perhaps implication on my own self-interest in my career, right? Because you have to have that courage sometimes to make choices that I know we'll see in politically speaking, what are the right thing to do? And you have to push through it. And you have to push through it. So the bottom line for me is that I don't think they're transforming fast enough. And the reality is I speak with a lot of leaders and we have seen stories in the past. And what they show is that if you look at the four main barriers that are basically keeping us behind budget, inability to act cultural issues, politics, and lack of alignment, those are the top four. But the interesting thing is that as Cindi has mentioned, these topics culture is actually gaining, gaining more and more traction. And in 2018, there was a story from HBR and it was about 45%. I believe today it's about 55%, 60% of respondents say that this is the main area that we need to focus on. So again, for all those leaders and all the executives who understand and are aware that we need to transform, commit to the transformation and set a state, deadline to say, "hey, in two years, we're going to make this happen. "What do we need to do to empower and enable "this change engines to make it happen?" You need to make the tough choices. And so to me, when I speak about being bold is about making the right choices now. So I'll give you samples of some of the roadblocks that I went through as I think transformation most recently, as Cindi mentioned in Schneider. There are three main areas, legacy mindset. And what that means is that we've been doing this in a specific way for a long time and here is how we have been successful what was working the past is not going to work now. The opportunity there is that there is a lot of leaders who have a digital mindset and there're up and coming leaders that are not yet fully developed. We need to mentor those leaders and take bets on some of these talent, including young talent. We cannot be thinking in the past and just wait for people, three to five years for them to develop because the world is going to in a way that is super fast. The second area, and this is specifically to implementation of AI is very interesting to me because just example that I have with ThoughtSpot, right, we went to implementation and a lot of the way is the IT team function of the leaders look at technology, they look at it from the prism of the prior all success criteria for the traditional Bi's. And that's not going to work. Again the opportunity here is that you need to really find what successful look like. In my case, I want the user experience of our workforce to be the same as user experience you have at home is a very simple concept. And so we need to think about how do we gain the user experience with this augmented analytics tools and then work backwards to have the right talent processes and technology to enable that. And finally, with COVID a lot of pressuring organizations, and companies to do more with less. And the solution that most leaders I see are taking is to just minimize costs, sometimes in cut budget, we have to do the opposite. We have to actually invest some growth areas, but do it by business question. Don't do it by function. If you actually invest in these kind of solutions, if you actually invest on developing your talent, your leadership to see more digitally, if you actually invest on fixing your data platform, it's not just an incremental cost. It's actually this investment is going to offset all those hidden costs and inefficiencies that you have on your system, because people are doing a lot of work and working very hard, but it's not efficiency, and it's not working in the way that you might want to work. So there is a lot of opportunity there. And you just to put into some perspective, there have studies in the past about, how do we kind of measure the impact of data. And obviously this is going to vary by your organization maturity, is going to, there's going to be a lot of factors. I've been in companies who have very clean, good data to work with. And I think with companies that we have to start basically from scratch. So it all depends on your maturity level, but in this study, what I think is interesting is they try to put attack line or attack price to what is the cost of incomplete data. So in this case, it's about 10 times as much to complete a unit of work when you have data that is flawed as opposed to have perfect data. So let me put that just in perspective, just as an example, right? Imagine you are trying to do something and you have to do 100 things in a project, and each time you do something, it's going to cost you a dollar. So if you have perfect data, the total cost of that project might be $100. But now let's say you have any percent perfect data and 20% flawed data by using this assumption that flawed data is 10 times as costly as perfect data. Your total costs now becomes $280 as opposed to $100. This is just for you to really think about as a CIO CTO, CHRO CEO, are we really paying attention and really closing the gaps that we have on our data infrastructure. If we don't do that, it's hard sometimes to see the snowball effect or to measure the overall impact. But as you can tell the price that goes up very, very quickly. So now, if I were to say, how do I communicate this? Or how do I break through some of these challenges or some of these various, right. I think the key is I am in analytics. I know statistics obviously, and love modeling and data and optimization theory and all that stuff. That's what I came to analytics. But now as a leader and as a change agent, I need to speak about value. And in this case, for example, for Schneider, there was this tagline called free up your energy. So the number one thing that they were asking from the analytics team was actually efficiency, which to me was very interesting. But once I understood that I understood what kind of language to use, how to connect it to the overall strategy and basically how to bring in the, the right leaders, because you need to focus on the leaders that you're going to make the most progress. Again, low effort, high value. You need to make sure you centralize all the data as you can. You need to bring in some kind of augmented analytics solution. And finally you need to make it super simple for the, in this case, I was working with the HR teams in other areas, so they can have access to one portal. They don't have to be confused in looking for 10 different places to find information. I think if you can actually have those four foundational pillars, obviously under the guise of having a data-driven culture, that's when you can actually make the impact. So in our case, it was about three years total transformation, but it was two years for this component of augmented analytics. It took about two years to talk to IT get leadership support, find the budgeting, get everybody on board, make sure the safe criteria was correct. And we call this initiative, the people analytics portal, it was actually launched in July of this year. And we were very excited and the audience was very excited to do this. In this case, we did our pilot in North America for many, many manufacturers. But one thing that is really important is as you bring along your audience on this, you're going from Excel, in some cases or Tableau to other tools like, ThoughtSpot, you need to really explain them what is the difference and how these tools can truly replace, some of the spreadsheets or some of the views that you might have on these other kind of tools. Again, Tableau, I think it's a really good tool. There are other many tools that you might have in your toolkit. But in my case, personally, I feel that you need to have one portal going back to Cindi's point. I really truly enable the end user. And I feel that this is the right solution for us, right? And I will show you some of the findings that we had in the pilot in the last two months. So this was a huge victory, and I will tell you why, because it took a lot of effort for us to get to the station. Like I said, it's been years for us to kind of lay the foundation, get the leadership, and shaping culture so people can understand why you truly need to invest on (indistinct) analytics. And so what I'm showing here is an example of how do we use basically, a tool to capture in video the qualitative findings that we had, plus the quantitative insights that we have. So in this case, our preliminary results based on our ambition for three main metrics, hours saved user experience and adoption. So for hours saved or a mission was to have 10 hours per week per employee save on average user experience, or ambition was 4.5. And adoption, 80%. In just two months, two months and a half of the pilot, we were able to achieve five hours per week per employee savings. Our user experience for 4.3 out of five and adoption of 60%. Really, really amazing work. But again, it takes a lot of collaboration for us to get to the stage from IT, legal, communications, obviously the operations teams and the users in HR safety and other areas that might be, basically stakeholders in this whole process. So just to summarize this kind of effort takes a lot of energy. You are a change agent. You need to have a courage to make the decision and understand that I feel that in this day and age, with all this disruption happening, we don't have a choice. We have to take the risk, right? And in this case, I feel a lot of satisfaction in how we were able to gain all these very source for this organization. And that gave me the confidence to know that the work has been done and we are now in a different stage for the organization. And so for me, it to say, thank you for everybody who has believed, obviously in our vision, everybody who has believe in the word that we were trying to do and to make the life of four workforce or customers or in community better. As you can tell, there is a lot of effort. There is a lot of collaboration that is needed to do something like this. In the end, I feel very satisfied. With the accomplishments of this transformation, and I just want to tell for you, if you are going right now in a moment that you feel that you have to swim upstream what would mentors, what would people in this industry that can help you out and guide you on this kind of a transformation is not easy to do is high effort, but is well worth it. And with that said, I hope you are well, and it's been a pleasure talking to you. Talk to you soon, take care. >> Thank you, Gustavo, that was amazing. All right, let's go to the panel. (air whooshing) >> Okay, now we're going to go into the panel and bring Cindi, Michelle, Tom, and Gustavo back and have an open discussion. And I think we can all agree how valuable it is to hear from practitioners. And I want to thank the panel for sharing their knowledge with the community. And one common challenge that I heard you all talk about was bringing your leadership and your teams along on the journey with you. We talk about this all the time, and it is critical to have support from the top. Why? Because it directs the middle and then it enables bottoms up innovation effects from the cultural transformation that you guys all talked about. It seems like another common theme we heard is that you all prioritize database decision-making in your organizations and you combine two of your most valuable assets to do that and create leverage, employees on the front lines. And of course the data. And as you rightly pointed out, Tom, the pandemic has accelerated the need for really leaning into this. The old saying, if it ain't broke don't fix it. Well COVID is broken everything. And it's great to hear from our experts, how to move forward. So let's get right into it. So Gustavo, let's start with you if I'm an aspiring change agent and let's say I'm a budding data leader. What do I need to start doing? What habits do I need to create for long lasting success? >> I think curiosity is very important. You need to be, like I say, in tune to what is happening, not only in your specific field, like I have a passion for analytics, I can do this for 50 years plus, but I think you need to understand wellbeing other areas across not only a specific business, as you know I come from, Sam's club Walmart, retail, I mean energy management technology. So you have to try to push yourself and basically go out of your comfort zone. I mean, if you are staying in your comfort zone and you want to use lean continuous improvement, that's just going to take you so far. What you have to do is, and that's what I try to do is I try to go into areas, businesses, and transformation that make me stretch and develop as a leader. That's what I'm looking to do so I can help transform the functions organizations and do the change management, change of mindset required for these kinds of efforts. >> Michelle, you're at the intersection of tech and sports and what a great combination, but they're both typically male oriented fields. I mean, we've talked a little bit about how that's changing, but two questions. Tell us how you found your voice and talk about why diversity matters so much more than ever now. >> No, I found my voice really as a young girl, and I think I had such amazing support from men in my life. And I think the support and sponsorship as well as sort of mentorship along the way, I've had amazing male mentors who have helped me understand that my voice is just as important as anyone else's. I mean, I have often heard, and I think it's been written about that a woman has to believe they'll 100% master topic before they'll talk about it where a man can feel much less mastery and go on and on. So I was that way as well. And I learned just by watching and being open, to have my voice. And honestly at times demand a seat at the table, which can be very uncomfortable. And you really do need those types of, support networks within an organization. And diversity of course is important and it has always been. But I think if anything, we're seeing in this country right now is that diversity among all types of categories is front and center. And we're realizing that we don't all think alike. We've always known this, but we're now talking about things that we never really talked about before. And we can't let this moment go unchecked and on, and not change how we operate. So having diverse voices within your company and in the field of tech and sports, I am often the first and only I'm was the first, CIO at the NFL, the first female senior executive. It was fun to be the first, but it's also, very challenging. And my responsibility is to just make sure that, I don't leave anyone behind and make sure that I leave it good for the next generation. >> Well, thank you for that. That is inspiring. And Cindi, you love data and the data's pretty clear that diversity is a good business, but I wonder if you can add your perspectives to this conversation? >> Yeah, so Michelle has a new fan here because she has found her voice. I'm still working on finding mine. And it's interesting because I was raised by my dad, a single dad. So he did teach me how to work in a predominantly male environment, but why I think diversity matters more now than ever before. And this is by gender, by race, by age, by just different ways of working in thinking is because as we automate things with AI, if we do not have diverse teams looking at the data and the models and how they're applied, we risk having bias at scale. So this is why I think I don't care what type of minority you are finding your voice, having a seat at the table and just believing in the impact of your work has never been more important. And as Michelle said more possible. >> Great perspectives, thank you. Tom I want to go to you. I mean, I feel like everybody in our businesses in some way, shape or form become a COVID expert, but what's been the impact of the pandemic on your organization's digital transformation plans? >> We've seen a massive growth actually in a digital business over the last, 12 months, really, even in celebration, right? Once COVID hit, we really saw that in the 200 countries and territories that we operate in today and service our customers, today, that there's been a huge need, right? To send money, to support family, to support, friends and support loved ones across the world. And as part of that we are very, honored to get to support those customers that we, across all the centers today. But as part of that acceleration we need to make sure that we had the right architecture and the right platforms to basically scale, right, to basically support and provide the right kind of security for our customers going forward. So as part of that, we did do some pivots and we did accelerate some of our plans on digital to help support that overall growth coming in and to support our customers going forward, because there were these times during this pandemic, right? This is the most important time. And we need to support those that we love and those that we care about and doing that it's one of those ways is actually by sending money to them, support them financially. And that's where, really our part of that our services come into play that we really support those families. So it was really a great opportunity for us to really support and really bring some of our products to this level and supporting our business going forward. >> Awesome, thank you. Now I want to come back to Gustavo, Tom I'd love for you to chime in too. Did you guys ever think like you were, you were pushing the envelope too much in doing things with data or the technology that was just maybe too bold, maybe you felt like at some point it was failing or you're pushing your people too hard. Can you share that experience and how you got through it? >> Yeah, the way I look at it is, again, whenever I go to an organization, I ask the question, hey, how fast you would like transform. And, based on the agreements from the leadership and the vision that we want to take place, I take decisions. And I collaborate in a specific way now, in the case of COVID, for example, right. It forces us to remove silos and collaborate in a faster way. So to me, it was an opportunity to actually integrate with other areas and drive decisions faster, but make no mistake about it. When you are doing a transformation, you are obviously trying to do things faster than sometimes people are comfortable doing, and you need to be okay with that. Sometimes you need to be okay with tension, or you need to be okay debating points or making repetitive business cases until people connect with the decision because you understand, and you are seeing that, "hey, the CEO is making a one two year, efficiency goal. "The only way for us to really do more with less "is for us to continue this path. "We cannot just stay with the status quo. "We need to find a way to accelerate the transformation." That's the way I see it. >> How about you Tom, we were talking earlier with Sudheesh and Cindi, about that bungee jumping moment. What could you share? >> Yeah, I think you hit upon it, right now, the pace of change with the slowest pace that you see for the rest of your career. So as part of that, right, that's what I tell my team is that you need to be, you need to feel comfortable being uncomfortable. I mean, that we have to be able to basically scale, right, expand and support that the ever-changing needs in the marketplace and industry our customers today, and that pace of change that's happening, right. And what customers are asking for and the competition in the marketplace, it's only going to accelerate. So as part of that, as you look at what, how you're operating today in your current business model, right. Things are only going to get faster. So you have to plan into a line into drive the agile transformation so that you can scale even faster in the future. So as part of that, that's what we're putting in place here, right, is how do we create that underlying framework and foundation that allows the organization to basically continue to scale and evolve into the future? >> Yeah, we're definitely out of our comfort zones, but we're getting comfortable with it. So, Cindi, last question, you've worked with hundreds of organizations, and I got to believe that, some of the advice you gave when you were at Gartner, which is pre COVID, maybe sometimes clients didn't always act on it. They're not on my watch for whatever variety of reasons, but it's being forced on them now. But knowing what you know now that we're all in this isolation economy, how would you say that advice has changed? Has it changed? What's your number one action and recommendation today? >> Yeah, well, first off, Tom just freaked me out. What do you mean? This is the slowest ever even six months ago I was saying the pace of change in data and analytics is frenetic. So, but I think you're right, Tom, the business and the technology together is forcing this change. Now, Dave, to answer your question, I would say the one bit of advice, maybe I was a little more, very aware of the power and politics and how to bring people along in a way that they are comfortable. And now I think it's, you know what you can't get comfortable. In fact, we know that the organizations that were already in the cloud have been able to respond and pivot faster. So if you really want to survive as Tom and Gustavo said, get used to being uncomfortable, the power and politics are going to happen. Break the rules, get used to that and be bold. Do not be afraid to tell somebody they're wrong and they're not moving fast enough. I do think you have to do that with empathy, as Michelle said, and Gustavo, I think that's one of the key words today besides the bungee jumping. So I want to know where's the dish going to go bungee jumping. >> Guys fantastic discussion, really. Thanks again to all the panelists and the guests. It was really a pleasure speaking with you today. Really virtually all of the leaders that I've spoken to in the Cube program. Recently, they tell me that the pandemic is accelerating so many things, whether it's new ways to work, we heard about new security models and obviously the need for cloud. I mean, all of these things are driving true enterprise wide digital transformation, not just, as I said before, lip service. Sometimes we minimize the importance and the challenge of building culture and in making this transformation possible. But when it's done, right, the right culture is going to deliver tremendous results. Yeah, what does that mean getting it right? Everybody's trying to get it right. My biggest takeaway today is it means making data part of the DNA of your organization. And that means making it accessible to the people in your organization that are empowered to make decisions, decisions that can drive new revenue, cut costs, speed access to critical care, whatever the mission is of your organization. Data can create insights and informed decisions that drive value. Okay. Let's bring back Sudheesh and wrap things up. Sudheesh, please bring us home. >> Thank you. Thank you, Dave. Thank you, the Cube team, and thank goes to all of our customers and partners who joined us and thanks to all of you for spending the time with us. I want to do three quick things and then close it off. The first thing is I want to summarize the key takeaways that I had from all four of our distinguished speakers. First, Michelle, I will simply put it. She said it really well. That is be brave and drive. Don't go for a drive along. That is such an important point. Oftentimes, you know that I think that you have to do to make the positive change that you want to see happen but you wait for someone else to do it, not just, why not you? Why don't you be the one making that change happen? That's the thing that I've picked up from Michelle's talk. Cindi talked about finding the importance of finding your voice. Taking that chair, whether it's available or not, and making sure that your ideas, your voices are heard, and if it requires some force, then apply that force. Make sure your ideas are heard. Gustavo talked about the importance of building consensus, not going at things all alone sometimes building the importance of building the quorum. And that is critical because if you want the changes to last, you want to make sure that the organization is fully behind it. Tom, instead of a single takeaway, what I was inspired by is the fact that a company that is 170 years old, 170 years old, 200 companies and 200 countries they're operating in. And they were able to make the change that is necessary through this difficult time. So in a matter of months, if they could do it, anyone could. The second thing I want to do is to leave you with a takeaway that is I would like you to go to topspot.com/nfl because our team has made an app for NFL on Snowflake. I think you will find this interesting now that you are inspired and excited because of Michelle's talk. And the last thing is please go to thoughtspot.com/beyond our global user conference is happening in this December. We would love to have you join us. It's again, virtual, you can join from anywhere. We are expecting anywhere from five to 10,000 people, and we would love to have you join and see what we've been up to since last year. We have a lot of amazing things in store for you, our customers, our partners, our collaborators, they will be coming and sharing. We'll be sharing things that we've have been working to release something that will come out next year. And also some of the crazy ideas our engineers have been cooking up. All of those things will be available for you at the Thought Spot Beyond. Thank you. Thank you so much.