Adam Smith worked for one employer, FedEx, for nearly a quarter of a century.
But for the past 50 years, and for most of Mr. Smith's tenure, FedEx itself has not operated as a single business. The shipping company's various operations (FedEx Ground, FedEx Services, FedEx Express, etc.) were all managed independently. His IT leaders in these business units were given autonomy to seek unique technology solutions that best fit the specific service offerings they provided to their customers.
Businesses were to “compete collectively, operate independently, and manage cooperatively.” Revenues have increased, but technology has also become more complex.
That's changing as Mr. Smith and other executives rethink what it means to be “one FedEx.”
“What we're really focused on right now is how do we, as a company, leverage technology and data to be more efficient and more effective and support our customers,” said Smith, who began his career at FedEx in 2001 as a senior programmer analyst, then director and vice president before becoming CTO in April 2020.
This led FedEx to rethink the technology that helps it deliver packages to 220 countries and territories as they zigzag across roads and skies. “There is so much technology within FedEx,” Smith said.
By June, FedEx's express, ground and service divisions will be combined into Federal Express Corp. FedEx says a more efficient, intelligent network will enable it to better handle curveballs like severe weather by shifting volumes within different business units when a storm hits. Smith is also streamlining relationships with vendors and rethinking technology systems that were developed separately by different divisions.
One visible example is the handheld devices used by couriers to track parcels sent by courier or ground. Previously he had two different devices developed. One is to ensure delivery is delivered at the exact time by the next day, and the other is a completely different device designed to track deliveries up to a certain number of days. FedEx currently uses a single handheld device for both types of deliveries.
FedEx last year announced a goal of reducing costs by $4 billion by the end of fiscal 2025 under its new “One FedEx” integrated delivery model, and technology integration is key to achieving that goal, including improving the efficiency of technology supporting back-office functions such as legal, finance and human resources.
Another way FedEx hopes to become more efficient under a single organization is to more easily leverage and share data. “We have a huge amount of data that we have collected over the years,” Smith says. “How can we leverage that data and provide it to our customers?”
The data allows FedEx to share details about delivery timings, improving supply chain management for large customers. This is manifested through technology like FedEx's photo-based Proof of Delivery tool, which launched in 2022 and sends customers a photo showing the exact location of their package once it's been delivered to their address.
Smith says the proof-of-delivery feature is possible because FedEx has bet all-in on the cloud. The company works closely with Microsoft Azure, but also does some work with Google and Oracle. By the end of the year, FedEx plans to close all of its data centers and phase out all of its mainframe computers, saving $400 million a year.
Automation presents another technology opportunity for Smith. Smith envisions a future “dark dock.” This is a human-free cargo facility that uses robots and other autonomous tools to load and unload pallets onto trailers.
And then there's generative artificial intelligence. Smith categorizes these solutions into three buckets. The first is leveraging capabilities developed by FedEx vendors like Microsoft, Salesforce and ServiceNow. It also streamlines the work being done at FedEx, such as using tools like GitHub Copilot to make developers more efficient. Finally, generative AI has the potential to transform FedEx's core pickup and delivery business.
For now, Smith said, FedEx is “focused on the edge” of generative AI. This is because the technology needs to mature a little more before it can fully enter the market. Smith also casts a wide net and is not tied to any particular solution or vendor.
“There's so much coming to market every day,” Smith says, “and just staying on top of where the real opportunities are with all these capabilities coming to fruition is a challenge.”
John Kell
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News Packet
CIOs are faced with the challenge of integrating project management software. Chief information officers trying to reduce the number of software vendors used by their companies are facing resistance from employees who don't want to give up their favorite project management tools. of wall street journal report. However, such tools can be expensive, with costs per user ranging from $12 to $45 per month. And while project management software vendors say differentiation and edged solutions are some of their selling points, CIOs still find it difficult for companies to negotiate discounts and avoid high integration costs. , you may find yourself favoring fewer vendors to reduce your cyber attack surface.
Microsoft introduces Copilot for Teams. At its Build developer conference this week, Microsoft Debuts new team copilotis integrated with the tech giant's video conferencing app to help you manage meeting topics and take notes that all meeting participants can collaborate on. Team Copilot features will be available in preview mode later this year, with Copilot licenses starting at $30 per user per month. Copilot aims to increase employee productivity and help improve workflow, but Companies are becoming more cautious How many employees are willing to sign up to take advantage of these features?
Palo Alto Networks' outlook points to a slowdown in cybersecurity services. Palo Alto Networks' weak fourth-quarter revenue outlook reignited concerns about spending fatigue for cybersecurity services. Customers appear to be tightening their budgets even as they face an increase in attacks. Analysts say firewall sales at Palo Alto Networks and its peers are slowing, Bloomberg reports. ReportsMeanwhile, other product categories face intense competition, resulting in shorter contract terms.
adoption curve
A recent survey conducted by accounting giant KPMG shows that businesses are increasingly leveraging AI for financial reporting and auditing, and are deploying the technology for risk mitigation, data analytics, fraud detection and predictive analytics, despite several hurdles remaining regarding uncertain returns on investment and retention as well as regulation.
While only one in 10 companies have widely deployed AI for financial reporting, with 72% deploying the technology on a pilot or selective basis and a further 27% planning to do so, based on a survey of 1,800 companies, KPMG says that within three years, nearly all companies will be using AI for financial reporting.
The study found that large companies are likely to be leaders in AI-enabled financial reporting, and the three industries with the highest adoption of AI are technology, media, communications, industrial manufacturing, energy, natural resources, and chemicals. It became clear that. KPMG also estimates that AI accounts for 10% of his IT budget, and that amount is expected to “increase significantly.”
Job Radar
employment:
– Theo AIPredict the outcome of legal disputes using predictive analytics We're looking for a CTO Based in the San Francisco Bay AreaPosted salary range: $200,000 to $250,000 per year.
– Williams Sonomais a home furnishings retailer. We are seeking a Vice President of Technology, Security and Compliance (CISO) Based in San FranciscoPosted salary range: $250,000 to $300,000 per year.
– Bramble, The logistics company We are hiring an IT VP for Americas division Based in WashingtonPosted salary range: $271,000 to $406,000 annually.
Recruitment:
– Cleveland Clinic have name Sarah Hatchett will assume the role of SVP and CIO on May 16, after serving in the role on an interim basis since August 2023. During her time at Cleveland Clinic, Hatchett led the IT consolidation of multiple hospitals joining the hospital system.
– Stormigic appointed Dr. Julian Chesterfield has been appointed CTO, having previously served in other technology leadership roles. Companies like Xensource, Citrix, OnApp, and more.
– Planet Home Lending have Hired As EVP and CIO, Bill Shuler will drive the company's technology growth and improve operational efficiency. Prior to joining Planet, Mr. Schuller served as President of WPS Advisors LLC, providing consulting services to mortgage and private equity firms.
– Media Monks Named Laurent Falci becomes CIO In his new role, he will be responsible for the integration and standardization of technology platforms.
– international media investment have Appointed Dr Craig Martell will take on the role of CTO, bringing 20 years of experience to IMI including serving as Chief Digital and AI Officer for the Department of Defence and Group CIO at MultiChoice Group.
– Sanctuary Wealth Appointed Robert Coppola will become CTO, reporting to CEO Adam Malamed and refining the company's digital strategy around new solutions, including AI.
