The digital transformation is now. This maxim, uttered by Jean-Marc Lagoutte, vice president and CIO of Cigref Danone, epitomizes the atmosphere of the General Assembly of the Club of large companies, held on Tuesday 8 October. Red wire of the event, the institution that brings together the CIOs of large French groups, has stressed the upheaval by the transition to the digital world in the organization of firms, both in terms of their governance and their business model. This has been stressed by the different Vice Presidents of Cigref that have succeeded, to a packed house. This shift represents a vast upheaval of the value creation process, as noted by Jean-Marc Lagoutte.

The CIO however recalled that in this digital transformation, providers too should adapt to the new digital culture. Jean-Marc Lagoutte has therefore advocated among CIOs in the room a model of co-construction with suppliers. Because these two worlds are in his opinion, very “interdependent” in this transformation to digital. “Suppliers must also make their digital transformation, with, in addition, their position as ‘knowledgeable parties,'” he explained. “So providers and user companies have an incentive to cooperate to ‘cracker’ digital transformation.” “Or disappear,” he blurted out, referring to the “value co-construction”.

Note that Cigref is working with several leading suppliers of the sector. One remembers, for example, his work with Oracle, Microsoft, SAP and HP, to name a few. Building sites are also underway with Orange Business Services and IBM but also with Amazon or Google – members since 2008. In 2013, continues Jean-Marc Lagoutte, relations were established with Salesforce and Samsung. “We want to build a favorable ecosystem for all,” with “suppliers that evolve and new players,” recalling the mission of Cigref. This is according to him “our duty”. It does not matter if it is an IT consultancy firm in London or a large investment house in France, the ecosystem has to benefit everyone.

Trust, sharing, collective intelligence, or transformation of management methods in promoting cross – the topics covered in the reference book “Digital Enterprise & Culture”, updated and published during this General Assembly – are at the heart of Cigref’s speech. But above all, he recalls, the CIO must be “carrying the message. Because it controls the internal and external flows. ” One of the other great challenges of the transition to digital technology relies on the ability of the company to implement a strategy driven by Comex and crafts, still shows the club of big business. But beware, launches Bernard Duverneuil “digital must fit into a meaningful project. Yes to digital, but it does matter how,” he says again.

In its supportive role of big business – “a crossroads of exchange reflection and guidance,” said Pascal Buffard, club president and president of AXA Technology Services, Cigref also announced the creation of the Institute of digital transformation, in partnership with the CNAM, whose mission is to offer training programs (of 5 half days cycles) “around the issues of digital transformation.” Even smaller firms such as Prosyn, which provides IT support for small businesses, has a stake in these issues.

Another message, more of a global one, was to remember when the General Assembly of Cigref, “inevitable” digital business transformation. For Bernard Duverneuil, the CIO Essilor and vice president of Cigref, this transformation must be built on digital culture that large companies must acquire.

Augmented Reality warehouse: a failure


The idea is a good one. The operator, tasked with preparing the order of a buyer on the site is literally guided along the paths to the correct location for the “picking”by an intelligent, interactive “heads up” display. As soon as he finds one of the items ordered, it scans the barcode, his glasses record his action, and he can go to the next item. Both hands are free to manipulate objects, no effort to find the right location, virtual arrows guide through the aisles. The demonstration was impressive, but is it possible today to effectively deploy the application?

One such application is not yet deployable at warehouses, admits Isabelle Badoc, product manager at Generix end supply chain. “We tried several types of glasses and their technology is still too limited in terms of uptake. They are not good at reading barcodes, unless you’re very close to the item. In fact, it is not usable in real situations. What we wanted to do with this video is shake the market. The logistics market may find interest in the use of such glasses, and we want to push manufacturers so they do change their glasses to make them usable in the warehouse. We looked at absolutely all models in the market and quickly concluded that Google glasses were not usable for a professional use. Our developments, we conduct now with Epson. We met them and they understood the potential of the Supply Chain market for glasses.”

Paradoxically, it would not be developing applications that poses the greatest problem in this type of project. “If augmented reality requires some skills, there is no real additional cost to the development of such applications. The glasses are considered a mobile terminal, the development is the same as for a mobile application. Access to the WMS and ERP via Web Services. These interfaces existed in Reflex, our WMS, so it was relatively simple to implement these glasses,” says Nicolas Chapu.

Nevertheless, the glasses of this generation are still relatively heavy and it does not seem possible to require an operator to carry them throughout their working day. Finally, performance is still insufficient for reading bar codes. “It is not possible to read a barcode located a few meters up in height, for example. There are some limitations of this type, but the technology is evolving very quickly. We brought our prototype glasses Vuzix and we have seen progress between the two generations glasses ” Nicolas Chapu assures. SAP is also working on the issue and just signed a partnership with Vuzix to offer its first two applications on the M100 model.

Furthermore, experiments have revealed a simple problem, that of prescription glasses wearers. In practice, you can not wear two pairs of glasses stacked all day. If you can put corrective lenses on some models of glasses connected, this type of adaptation swells the TCO of the project and excludes the temporary staff, which are the people who would most benefit from this type of technology.

The Target Data Breach

Security experts believe that the security breach that Target suffered in late 2013 might cost considerably more than the $ 162 million initially estimated by the company in its annual report that same year. Target said that in fact it has accumulated $191 million of gross expenditure in 2014 to manage the consequences of the breach of security, after the $17 million of net expenses in 2013 – after compensation by insurance, and $46 million of future compensation.
But spending could progress even further, because a judge has given the green light to financial institutions to continue their quest for compensation by Target for their own financial losses caused by the attack. That verdict could open Target up to a whole slew of court cases, settlements, and ultimately, expenses.
And the continuation of other proceedings against the company received the legal green light last January: a collective case brought by customers claiming to have been harmed by the breach that made their personal data vulnerable. Up to 70 million Target customers may have been affected by the security breach that was followed by the resignation of the RSSI of the company.
The breach may have allowed the collection of personal data including the name, address, email address, and phone number of customers, as well as the details of 40 million credit and debit cards. Up to three million payment card details are suspected to have been sold on the black market and used fraudulently before the banks managed to cancel the others.
“Taking into account the pending claims, the cost of the incident could exceed one billion dollars,” said Eric Chiu, president and co-founder of HyTrust. For him, “this could serve as a strong example to show that companies need to place data security as a top priority, especially around internal threats which is how most breaches occur today.”
Targeted phishing attacks have recently been identified as the initial step in what has been described as the most daring digital breach to date and which has led financial institutions worldwide to lose $ 1 billion. Steve Hultquist, chief evangelist at RedSeal, for its part considers that significant investment in proactive security analytics and process improvement have produced good results at Target.
“Invest now or pay later. This is the message that we are all taking from the Target incident. Making strategic investments now is a wise preventive measure to keep the organization and its customers safe.”
In its financial results forecasts for the last quarter of 2014, Sony estimated $15 million in costs of investigation and remediation related to the attack on its Sony Pictures subsidiary by the end of the year. But like Target, many feel that the actual costs will be considerably higher, and this number does not take into account any fines, costs of legal proceedings, and damage to the company’s reputation.
For its part, Home Depot, another victim of pirates last year, said they suffered a net expense before tax of $35 million for the attack which it experienced. But the group acknowledges that they are again, for now, unable to estimate certain costs attributable to that attack.

Cloud maturity: AWS leads but Microsoft virtually doubles cloud revenue

Amazon Webservices (AWS) is continuing to grow its cause over rival public cloud companies, while Microsoft experienced 96% year-on-year progress in 2014.

Analyst Synergy believed quarterly cloud structure service profits – including infrastructure-as a service (IaaS), system being a service, exclusive cloud and hybrid cloud – reach the $5bn milestone, with following 12-month profits exceeding $16bn.

Complete cloud revenues for 2014 became by 48% in the previous year.

The revenue growth demonstrates increasing acceptance of public cloud services within the organization, especially with interest in IaaS.

Synergy mentioned that in 2014, AWSis share of the global market was 28%, accompanied by Microsoft (10%), IBM (7%), Bing (5%), Salesforce (4%) and Rackspace (3%).

Research manager John Dinsdale and synergy Research Group chief expert stated the traction built-up at AWS and Microsoft is very extraordinary.

“They have an ever- they are also benefitting from a slowdown inside the tremendous and broadening profile of companies -extreme cost opposition that was a of the initial 50% of 2014 he said.

Amazon Tom Szkutak recently proved the company’s responsibility to rising shareholder value while in the AWS enterprise by positioning its cloud business around the company’s balance sheet.

At its re discussion in 2014, Amazon unveiled a database engine termed Aurora, that’ll target classic enterprise database choices from IBM Oracle and Microsoft.

Meanwhile, Microsoft CEO Nadella has extended to represent Orange Active Directory and Office 365 as entrypoints to the company’s cloud that was public.

Microsoft claims to get more than 350m Violet Active Directory customers, which is at the heart of Microsoft’s unit management method, which spans desktop products, laptops, supplements.

Managing director Gavin and aWS UK recently said in a appointment that unlike classic IT providers, cloudservices do not involve the exact same amount of frenetic exercise to close deals.

” since the customer determines once they certainly will come and move and utilize AWS as they please We’re not there to close a at the conclusion of the quarter,” he said.

Perhaps, it’s this flexibility that’s built cloud services that are public appealing to organizations.