Adam Smith worked for one employer, FedEx, for almost a quarter of a century.
But for the past 50 years, and for nearly the entirety of Smith's tenure, FedEx itself didn't operate as a single business. The delivery company's various operations (FedEx Ground, FedEx Services, FedEx Express, etc.) were all managed independently. IT leaders within those business units were given the autonomy to explore their own technology solutions that best suited the particular delivery services they offered to 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 Smith and other executives rethink what it means to be “one FedEx.”
“What we're really focused on right now is how do we leverage technology and data as a company to become more efficient and more efficient and how do we support our customers,” Smith said. says Mr. He joined FedEx in 2001 as a senior programmer and analyst, then became director, vice president, and in April 2020 he became CTO.
That led FedEx to look anew at the technology that can help deliver packages as they zigzag across the roads and skies. “FedEx has a whole lot of technology in it,” Smith says.
By June, FedEx's express, ground and services divisions will be combined into Federal Express Corp. FedEx says a more efficient, intelligent network will better handle unexpected events like severe weather by shifting volume within different business units when a storm hits. Smith is also streamlining vendor relationships and rethinking technology systems that had been developed separately by different divisions.
One visible example is the handheld devices used by couriers to track express and ground packages. Previously, two different devices had been developed: one that guaranteed delivery at a precise time the next day, and a completely different device designed to track deliveries over a specific number of days. Currently, FedEx uses one handheld device for both types of deliveries.
Last year, FedEx announced a goal of reducing costs by $4 billion by the end of fiscal year 2025 under its new One FedEx integrated delivery model, and technology integration is key to achieving this goal. Become. This includes streamlining technology that supports back-office functions such as legal, finance, and human resources.
Another way FedEx wants to become more efficient under a single entity is by making data more easily available and shared. “We have a lot of data that we've collected over the years,” Smith says. “How can we leverage that data and make it available to our customers?”
The data allows FedEx to share details about delivery timing, improving supply chain management for large customers. This is manifested through technology like FedEx's photo-based proof of delivery tool. Launched in 2022, the tool sends customers a photo showing the exact location of a package once it is delivered to an address.
Smith said the proof of delivery feature was made possible because of FedEx's commitment to the cloud. FedEx works closely with Microsoft Azure, but also has some workloads with Google and Oracle. FedEx aims to close all of its data centers and eliminate all of its mainframe computers by the end of this year, saving $400 million a year.
Automation presents new technology opportunities for Smith. He envisions a future “dark dock,” a cargo facility that uses robotics and other autonomous tools to load and unload pallets onto trailers without humans.
And then there's generative artificial intelligence. Smith categorizes these solutions into his three groups. The first is to leverage capabilities developed by his FedEx vendors, including Microsoft, Salesforce, and ServiceNow. The second is streamlining the work we do at FedEx, including making developers more efficient with tools like GitHub Copilot. Finally, generative AI could help him transform FedEx's core collection and delivery operations.
For now, FedEx is “focusing on the fringes” of generative AI because the technology needs a bit more maturity before it can really make inroads, Smith said. He also wants to take a broad view and not lock into any particular solution or vendor.
“There's so much more coming to market every day,” Smith says. “As all these capabilities come to fruition, it takes a lot of effort just to stay on top of where the real opportunities are.”
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 reportBut the cost of these tools can be high, ranging from $12 to $45 per user per month. Although project management software vendors claim that differentiation and precise solutions are part of their selling point, CIOs may be inclined to prefer fewer vendors to negotiate discounts, avoid high integration costs, and reduce the surface area for cyberattacks.
Microsoft introduces Co-Pilot for Teams. At this week's Build developer conference, Microsoft said We debuted our new team co-pilot, is integrated with the tech giant's video conferencing app, allowing you to manage meeting topics and create notes that all meeting participants can co-edit. Team Copilot features will be available in preview mode later this year with his Copilot license starting at $30 per user per month. Although co-pilots aim to increase employee productivity and contribute to improved workflow, some co-pilots Companies are being cautious How many employees are willing to sign up to take advantage of these features?
Palo Alto Networks' outlook suggests a slowdown in cybersecurity services. Palo Alto Networks' lackluster fourth-quarter fiscal revenue outlook suggests customers are tightening budgets even in the face of rising attacks, raising new concerns about spending fatigue on cybersecurity services occurred. Analysts say Palo Alto Networks and peers are facing slowdown in firewall sales, according to Bloomberg reportOn the other hand, other product categories face intense competition, resulting in shorter contract lengths.
Adoption Curve
A recent study conducted by accounting giant KPMG found that although some hurdles remain, such as uncertain investment returns and regulatory compliance, companies are leveraging AI for financial reporting and auditing to reduce risk and improve risk. This technology is increasingly being deployed for data analysis, fraud detection, and predictive analytics.
Only 1 in 10 companies have widely implemented AI in financial reporting, but 72% are piloting or using the technology selectively, and 27% plan to do so. , says KPMG that within three years, nearly all companies will be using AI for financial reporting. Based on a survey of 1,800 companies.
The study showed that larger companies are more likely to be leaders in AI-powered financial reporting, with technology, media and communications being the three industries with the most adoption. industrial manufacturing. Energy, natural resources and chemicals. KPMG also found that AI accounts for 10% of his IT budget and is expected to “significantly increase” in the future.
Job Radar
employment:
– Theo AIuses predictive analytics to forecast the outcome of legal disputes. Looking for CTO Based in the San Francisco Bay AreaAdvertised salary range: $200,000 to $250,000 per year.
– williams sonomais a home furnishings retailer. Seeking Vice President of Technology, Security and Compliance (CISO) Based in San Francisco. Published salary range: $250,000-$300,000/year.
– Bramble, is a logistics company Recruiting Vice President of IT for Americas Division Based in WashingtonPosted salary range: $271,000 to $406,000 per year.
Hiring:
– Cleveland Clinic have name Sarah Hatchett will become SVP and CIO, effective May 16, after serving in the role on an interim basis since August 2023. During Ms. Hatchett's time at her clinic in Cleveland, she has led her IT integration of multiple hospitals participating in the hospital system.
– store magic appointed Dr. Julian Chesterfield becomes CTO. Previously, he held CTO and other technology leadership roles. Companies like Xensource, Citrix, OnApp, and more.
– Planet Home Lending Have hired Bill Shuler joins the company as EVP and CIO to drive the company's technology growth and drive 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 Investments Have appointed Dr. Craig Martell becomes CTO. He brings 20 years of experience to his IMI, including as chief digital and his AI officer at the Department of Defense 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.
