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Adrian Samareanu: Three Key Enablers of a Successful Digital Organization

Digital transformation does not happen overnight. According to Adrian Samareanu, Global CDO of Volvo Financial Services, digital transformation is an advanced type of change management that involves people, processes, and technology. In this exclusive interview, we speak with Adrian about the top enablers of digital transformation, challenges with integrating digital tools, ways to attract talent with the right digital skills, and more.  

 

There is a lot of buzz around being digital and you have been on this journey for some time. What is digital transformation from your perspective?

For me, digital transformation is a sophisticated change management approach for traditional companies. It involves people, processes, and technology. At the same time, it is about changing the mindset of a company to perform in a digital business environment and engage customers through digital channels. You get a lot of perspectives on digital transformation these days, and there are no wrong or right answers because it reflects the digital maturity in the respective organization. 

 

Out of the many technologies and digital focus areas, why are cloud, data, and customer experience particularly important in a business strategy?

Cloud, data, and customer experience are foundational building blocks for a digital business, as they are key enablers for building new services and achieving sustainable business results. In simple terms, cloud gives businesses the flexibility and ability to scale quicker. Data is the heart of a digital business. Every company relies on data, but not every company is data driven. How often do you hear, “We don’t have enough data” or “We need more data”? The reality is there is enough data, however, very often, the data is not available for consumption. Many years ago, a CEO asked me for more data. We had the data but not a cohesive strategy to play with the data. I asked what data is needed and didn’t hear back for a while, but it triggered a different conversation, and a new data strategy playing offense, rather than defense brought up a fruitful dialogue at the board level.

Traditional financial services companies always rely on data to decide mainly on credit approvals, enhance lending processes or improve back-office. Therefore, I expanded the use of data to improve customer experience, create new business models and help customers and employees more effectively. It was a bold move and an intense process to shift the minds and hearts of many leaders in the organization. This is not limited to my organization. It goes beyond the boundaries of a company because it involves many players in different ecosystems. That means using data to unlock new opportunities, services, and business models. 

 

What are the biggest challenges when it comes to integrating digital tools across all business functions? How do you overcome them?

Digital transformation is not just a matter of the front-end functions along the customer journey. It involves the whole organization including back-end operations. The biggest challenge remains the timely adoption of new technologies in a multi-generation environment. Many times, we try to get the buy-in at the executive level in the boardroom and start a top-down approach during implementation. This is a push approach. While top leadership alignment is necessary, the engagement of the entire organization builds great momentum to increase the speed of change. We often see the development or implementation of new technologies being a roadblock. In fact, it’s the ability of the organization to adopt new tools. There are many ways to overcome this. Using diverse teams working cross-functionally in small groups to form new ideas, finding new ways of working, and nurturing the culture of learning are effective ways to accelerate the digital maturity of an organization. This is a pull approach, which is more effective to create value at scale. 

 

At Volvo Financial Services, collaboration and partnerships with start-ups are key ingredients for continuous innovation. Can you tell us about a recent co-creation that excited you?

The most exciting one? There are so many. I would say, creating a platform for innovation across the enterprise. This way, I think innovation is open to everyone inside and outside the organization to enable creation at scale. I’m always happy to see sustainable progress with innovation. The truth is that the corporate environment lacks certain skills to advance the ideation or that value creation at scale. There was a boom in using digital channels in Asia and Southeast Asia, particularly China, Singapore, and Indonesia after financial crises and I saw the opportunities. I started an exchange program with fintechs and startups and decided to work with them specifically for the acceleration of innovating new products and services like digital payments in China and other parts of Asia, then in Europe and North America. We now have many creative solutions and continuous innovation going on, including mobility subscriptions and a data studio ecosystem. Nowadays, we are on a different level in establishing partnerships and customers ecosystem.  

 

How do good change management practices affect employee onboarding and retention?

It starts with leading with care. When we had to work from home during the pandemic, many startups and smaller companies transitioned well. I think for large corporations, we saw the challenge of keeping everyone engaged. I would say mental health is essential to keep everyone aware and motivated. It’s important to engage your team and ensure everyone is having fun at work whether they are working from home or in the office. 

 

The labor market has shifted drastically in the Great Reshuffle era. How do you attract the right talent to fill the digital skills gap?

Every stage of digital transformation comes with different needs. This is why partnerships are important. Five years ago, we started with a very large spectrum of digital products and services and realized we did not have enough digital skills in-house. When this happens, you have to start upskilling your workforce or hire new people. Believe it or not, some of them find it very difficult to adapt to the corporate world. It is important to ensure that the ecosystem is there in terms of partnerships with fintechs, and identify the critical competencies in-house that are needed.  

Furthermore, leadership and management must ensure necessary care to maintain that engagement across the organization. This is how I lead the digital team to keep that engagement beyond the organization with the fintechs and the startups that are involved. I also see an influx from those companies into the corporate world. Flexibility is important to address the needs of the new generation. They are the ones setting hiring expectations with a focus on work-life balance, and I think it’s very difficult for large companies these days. Therefore, the more open companies are, the more likely they will attract and engage with digital talent from the younger generation. I think the attrition rate will continue to be high as digital skills continue to be high in demand. 

 

What are the elements of an effective change management plan?

As things are changing so fast, the final outcome of change management is always a moving target. This is what I call sophisticated change management which involves processes, technology, and people. Success lies in the orchestration and progression of those three elements. For example, if you are trying to push new technologies too fast and the organization can’t adopt them, it can cause frustration. If you look from a process perspective, you may not be able to create other value propositions and new revenue streams to stay competitive in the marketplace.  

 

What trends should CDOs be aware of in the next five years?

Most CDOs play today a key strategic role in transforming traditional companies. Many focus on process automation and innovation; or shifting the corporate culture towards digital. The pandemic’s impact on the economy pushed us to reimagine business in many aspects. In the next five years, I see CDOs focusing more on digital business opportunities, as well as new products and services driven by the data economy. Other focus areas are driving digital customer engagement, growth, revenue, outcome, and sustainability. If we look to the ambitious ESG goals ahead of us, there is no way this can be done without leveraging the edge technologies and human capital. That means that CDOs should retain sight of the human element of their role. I also think there will be a clear distinction between Chief Digital Officers and Chief Data Officers, which will be higher in demand. In addition, I think the usage of blockchain and cryptocurrency in decentralized finance will play a significant role in accelerating digital transactions and taking the economy to the next level.  

 

What achievement are you most proud of in your role as a CDO?

The most important thing is the culture of engagement internally and externally and having people coming together to create solutions that make transformation happen. My organization bounced back from a financial crisis, where the return on equity performance was at -10% and now 15%, doubling the asset portfolio size, and launching digital services and solutions for the digital marketplace. Having a good ratio between the operational efficiencies, and the new products and services addressing customer needs, as well as staying competitive in the marketplace has been a journey spanning 12 to 13 years. Looking back, I think creating that digital business foundation is something that I’m proud of. 

 

*The answers have been edited for length and clarity.

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Challenges and Benefits of Cybersecurity Mesh

The idea of a cybersecurity mesh as the way forward in this evolving digital landscape isn’t new. In fact, several security providers have been providing comprehensive and consolidated security solutions over the last few years based on the cybersecurity mesh approach including the Fortinet Security Fabric, Checkpoint Security Infinity, and Arhamsoft. 

However, the concept gained traction when Gartner tagged it as a top strategic technology trend in 2022. The firm noted that the rapid evolution and sophistication of cyberattacks in tandem with organizations migrating to hybrid multicloud systems creates a “perfect storm” of security risk that needs to be addressed. 

 

What is Cybersecurity Mesh Architecture?

As described by the firm, a Cybersecurity Mesh Artchitecture (CSMA) is a “composable and scalable approach to extending security controls, even to widely distributed assets”. This approach is said to be incredibly suitable for modular networks that are consistent with hybrid multi-cloud architectures. 

In traditional cybersecurity approaches, security controls are typically implemented at the network perimeter or within specific devices or applications. However, as organizations and their digital ecosystems become more complex and distributed, this perimeter-centric approach becomes less effective.

Cybersecurity mesh takes a more adaptive and dynamic approach. It envisions a security framework where security controls are woven into every aspect of the digital environment, forming a “mesh” of interconnected security services and capabilities. This approach allows for more granular and context-aware security, enabling protection at various layers, from individual devices and endpoints to applications and data.

Key features and principles of cybersecurity mesh architecture include:

  • Distributed and pervasive security: Security controls are distributed across multiple components and devices, extending protection beyond the traditional perimeter.
  • Identity-centric security: The focus is on securing individual identities and devices, rather than just protecting the network as a whole. This approach helps mitigate risks associated with unauthorized access and compromised credentials.
  • Dynamic and adaptive security: The mesh adapts to the changing security landscape and evolving threats, adjusting security controls based on real-time risk assessments and contextual information.
  • Scalability and flexibility: The cybersecurity mesh architecture allows for scalable deployment and integration of various security solutions, accommodating the diverse needs of modern digital environments.
  • Interoperability: Cybersecurity mesh promotes interoperability between different security technologies and services, enabling seamless communication and collaboration between them.

By adopting this cyber mesh architecture, organizations can achieve a more resilient and responsive security posture. It helps address the challenges posed by distributed architectures, cloud services, IoT devices, and the increasing sophistication of cyber threats.

 

Cybersecurity Mesh Architecture: Overview 

Source: Gartner Top Strategic Security Trends for 2022 – Cybersecurity Mesh

In essence, each tool in the IT infrastructure within the CSMA operates as a cog in a greater machine. The framework proposed by Gartner is based on four layers: 

  1. Security analysis and intelligence: which analyses past cybersecurity attacks, as well as data and lessons from other tools, to inform future trigger responses and actions 
  1. Distributed identity fabric: a decentralization of identity management, identity proofing and entitlement management, creating an environment of adaptive access 
  1. Consolidated policy and posture management: the ability to translate central policy into native configuration of each individual security tool 
  1. Consolidated dashboards: offering a holistic view of the entire security ecosystem 

The CSMA framework appears to offer significant benefits over the traditional IT security model. 

 

BENEFITS OF CYBERSECURITY MESH

 

Fortinet highlights the benefits of cybersecurity mesh, emphasizing that CSMA is poised to help organizations transition from obsolete legacy security systems to an integrated cybersecurity approach. This integration is vital as it enhances security, promotes operability among different security tools, and fosters agility.

This novel approach offers several crucial benefits, according to cybersecurity providers. 

 

Responsive Security 

 

The intelligent security design of a CSMA increases the agility and resilience of an organization’s security setup. With security tools working together on the same standards of zero trust, this approach ensures that an organization’s network receives the best real-time defense against known and evolving threats.  

A cybersecurity mesh is better able to handle more IAM (identity access management) requests, allowing for more mobile, adaptive, and unified access management. This means an organization will have a more reliable approach to managing access and control of its digital assets that is more spread out now than ever before. 

Source: IBM Cost of Data Breach Report 2021

This is especially significant as IBM reported that companies with a workforce that is more than 50% remote took 58 days longer to identify and contain breaches than those with less than 50% remote employees.  

 

Improved collaboration 

 

CSMA extends security across the entire organizational network while allowing IT departments to secure all systems and access points with a single set of interoperating tools and technologies.  

With the shift towards hybrid cloud solutions and remote work, organizations are making efforts to not only integrate third-party applications and services but also to ensure that those technologies are appropriately secure. 

This setup also improved the speed and efficacy of threat detection, and consequently response and prevention strategies as well. The information gathered by each security tool can be leveraged within the ecosystem to quickly address each security threat that may crop up. 

 

Flexibility and Scalability 

 

A key feature of CSMA is its distributed nature, creating individual security perimeters around each access point within an entire network and ecosystem. What this allows is deep visibility of the network edges, ensuring that all areas are protected in equal measure.  

The flexibility that this creates in a security system also gives organizations more agility to build new IT infrastructure and introduce new solutions as needed without compromising protection. An IT department is better able to keep up with the evolution of expanding and distributed IT infrastructure within the CSMA. 

 

Redefined cybersecurity perimeter 

 

Switching from the traditional “walled city” approach of cybersecurity where a perimeter is set up around the network may have been effective when it was first introduced. However, now that applications, data, devices, and users are operating outside of the traditional data centers and offices, CSMA becomes vital. 

The redefined cybersecurity perimeter that is key in the CSMA reduces the time taken to deploy security measures and responses as it offers a distributed identity fabric that establishes trusted access at each entry point into the network.  

On that note, CSMA is also expected to reduce insider threat incidents according to Gartner. These include credential thefts and attacks by malicious insiders which can cost organizations about $15.38 million per incident.  

Source: 2022 Cost of Insider Threats Global Report

There has been an increase in the frequency of insider threats from 60% in 2020 to 67% in 2022, in part due to the dramatic shift to remote and hybrid working as well as the “Great Resignation”. People are leaving organizations but still have access to critical data, systems, and infrastructure within the organization – this creates more vulnerabilities. 

The CSMA approach of building new perimeters and layered defenses around each device and network access point could make all the difference in mitigating this issue.  

 

Simplified Deployment and Management 

 

The agility of a CSMA also benefits organizations by making it easier and quicker for security teams to deploy and configure new solutions. Gartner’s proposed consolidated dashboard, which makes up one of the layers of CSMA, would enable organizations to better adapt their security structure to meet evolving business and security needs.  

An integrated security architecture would remove the need for security teams to switch between and operate various tools, which takes up precious time. Instead, it frees them up to focus on deploying and configuring solutions and frees them up for other critical security tasks, thereby improving efficiency overall. 

 

Challenges of CSMA 

 

While the benefits are many, totally overhauling the approach to security can pose several challenges. 

Some key challenges include:  

Ensuring proper training and support 

This is a relatively new framework and implementing it requires a significant change in the mindset. Organizations that want to build a CSMA will have to make significant investments in ensuring that their IT personnel are prepared and well supported during the transition.  

Ensuring secure and simple identity-based system 

A key aspect of CSMA, as mentioned before, is the newly defined security perimeter. Organizations will have to ensure that users are able to securely and easily access the network without it being a distraction that would lead to reduced productivity.  

Difficult and costly to apply to an existing ecosystem 

The CSMA would be much easier to incorporate during the planning stage of a security ecosystem, conducting discussions and reviews of security procedures with cloud and platform providers. Organizations that are looking to make this shift with an existing ecosystem may find it more challenging to do so. 

Cybersecurity mesh is at the core of zero trust philosophy. This shift in mindset required to make the shift could pose a significant hurdle, not to mention the cost that it might incur to implement a system based on this approach. 

Though the CSMA seems to bring with it many benefits, the challenges of making such a major shift in the security framework remain. Despite that, will CISOs and security leaders make the leap? 

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Anton Frisk Kockum: The Impact of Quantum Computing Advancements May Be Felt Across Many Industries 

Quantum computing technology could offer enterprises a way to optimize their systems and handle challenges in ways that are beyond the reach of classic computing models.  

We speak to Anton Frisk Kockum, researcher and Scientific Coordinator of the Wallenberg Centre for Quantum Technology (WACQT) at Chalmers University of Technology in Sweden about the state of quantum computing research, the challenges and potential benefits of the technology, as well as how quantum computing is already changing the digital landscape.  

 

In 2019, WAQCT achieved the desired performance with a two-qubit processor. The core project goal, of course, is to create a one hundred qubit processor that can run one algorithm. How do you get there? And how far along is the project?

The performance of the two-qubit processor was good, and that allowed us to run a quantum algorithm for a simple instance of a logistics problem in the airline industry. But we always desire the performance to be better. As we scale up towards a hundred qubits, we not only need to maintain the good properties of the two-qubit device (for example, how few errors it experienced), we need to improve on them. It’s no use having many qubits if they aren’t of good quality. This is important to remember when seeing announcements about qubit numbers from any player in this field.  

We have a plan for gradually scaling up to a hundred qubits with really good quality. Along the way, there are a number of scaling hurdles. For example, when you have more than a handful qubits, you need to automate tune-up and calibration of them. When you have more than twenty or so qubits, you can no longer control them well individually on a 2D chip but need to implement a 3D structure to house the control wires needed to control each qubit. With even more qubits, you need more customized electronics to control them all and you need to avoid overheating the advanced fridge housing them at millikelvin temperatures. 

We are on track in our ten-year plan and are currently testing a first-generation 25-qubit device with 3D integration. We have recently shown that we can do such 3D integration with fewer qubits without degrading their quality.  

 

What are some of the biggest challenges in quantum technology research now? How do you propose to address them?

For quantum computing, I see two main challenges: scaling up the size of the quantum computers (while also improving qubit quality) and figuring out at what scale these computers can run quantum algorithms that provide useful results. I described some of the scaling hurdles above, but there are more of them as you go up beyond a thousand qubits, towards millions. For algorithms, it is still unclear how small and noisy quantum computers can be and still have an advantage over classical computers in solving some useful problems.   

We know that there are advantages to be had with millions of high-quality qubits, and we know that quantum computers already today can run some programs which classical computers cannot emulate efficiently, but these programs are not yet useful. Figuring out where the boundary of useful quantum computing lies is thus essential.  

In WACQT, we are addressing both these challenges. I explained above how we are working to scale up the number of qubits. We also are making efforts to improve the quality of the qubits.  

On the algorithmic side, we are working with several major Swedish companies as industry partners to see how quantum algorithms can be applied in their areas of business, and what capacity a quantum computer needs to reach to have an impact there.  

 

Of the different arms of quantum research at WACQT – computing and simulation, communication, and sensing – which are you most excited about? Why?

As a researcher who mostly works in the area of quantum computing and simulation, I may be biased, but I think this is the area with the largest potential. The most important applications in this area may be further in the future than some in quantum sensing or quantum communication, but they include the ability to simulate and understand large molecules, which could have a tremendous impact on chemistry and biology. This could open large advances in medicine, materials science, etc. I’m particularly excited about the prospects that such advances in the long term could help us enjoy healthier and longer lives.  

 
Keep up with the latest IT trends in the 90Minutes CIO Insights webinar series. View the full schedule here.
 

Businesses are investing in quantum technology research with a focus on continuity. What do you think are potential useful real-world applications of quantum computing for organizations? Which industries stand to benefit the most?

These are difficult questions that many researchers, both in industry and in academia, are working to figure out answers to. The applications in chemistry that I described above seem more certain than many others but are quite long-term. Companies in sectors like finance, the automotive industry, and IT are investigating potential applications of quantum computing for machine learning and optimization problems. It is less clear whether there actually will be clear quantum advantages in these areas in the end, but if there are, the impact will be felt across many industries.  

 

Any technological advancement presents just as much risk as it does benefits. In the case of quantum computing, how can organizations build resilience against the risks that the technology poses?

I think the first step is to stay updated on the progress in the field of quantum computing. This helps identify risks in time to act and mitigate them. A next step could be to acquire in-house competence in the field, helping the organization become “quantum ready”, i.e., ready to make use of quantum computing for its purposes before competing organizations gain an advantage by doing so. 

 

What do you think are some emerging IT trends in 2022?

From my quantum computing perspective, I note that OpenSSH (a popular tool for remote login on computers), in its latest release a few weeks ago, changed its default encryption algorithm to one that is believed to be more resistant to quantum-computing attacks. Even though quantum computers that can break RSA encryption are still many years away, I think we will see a trend toward changing encryption methods in the near future. There is data that needs to remain secure for many years.  

*The answers have been edited for length and clarity.      

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The NFT Phenomenon – Just a Trend or Worth the Spend?

How will NFTs change the way we do business? Leading blockchain expert Dr. Merav Ozair answers pressing questions on the NFT phenomenon, how it differs from traditional systems, looking beyond the hype and more.

 
Dr. Merav Ozair is one of the world’s leading experts on blockchain and cryptocurrency. She is the Editor-in-Chief of the World Scientific Series in FinTech at World Scientific Publishing and is writing a series of books on Non-Fungible Tokens (NFTs), DOAs, and DeFi. She is a professor at New York University and is a member of the International Association for Trusted Blockchain Applications (INATBA) established by the European Commission.
 

One of the hottest digital assets sweeping the world right now is NFTs, or non-fungible tokens, which were initially introduced in 2014. Though most people were unfamiliar with NFTs in early 2021, the market for this new asset is now expected to grow from USD $14.02 billion to USD $21.33 billion in 2022 and up to USD $82.43 billion by 2026 according to the Global Non-fungible Token Market Report 2022. 

Major brands like Nike, Louis Vuitton, Gucci, and McDonald’s have jumped on this bandwagon as well, coming up with their own NFTs. Even the American restaurant chain Taco Bell launched a series of NFTs on the NFT marketplace, Rarible. These were GIFs that incorporated the company’s signature taco design, with profits from the NFT sales going to the Taco Bell Foundation. 

 

Is it just a fad? 

 

Though major organizations are exploring the world of NFTs, the question on everyone’s mind is whether this is just a trend that will soon die down, or if it is a new avenue in business worth investing in.  

According to Dr. Ozair, the world is still experiencing the hype of NFTs, though it is on a decline.  

She noted the sale of an NFT of the first tweet by Twitter co-founder Jack Dorsey which was initially sold for USD $3 million in 2021. The owner of the NFT tried to sell it recently for more than triple the original price. However, the highest bid he received was only just over USD $6,000.   

This clearly demonstrates the risks within the NFT market, as well as the dwindling initial excitement. However, she also noted that the value and draw of an NFT, much like art, lies in its uniqueness. Mr. Dorsey’s first tweet is still available on Twitter for the world to see. So, the NFT of it may not hold as much value to potential buyers. 

The value of an NFT is then determined by the market after all and the original buyer was unable to sell it for a higher amount as the market deemed it to be less valuable.  

In comparison, the family behind the viral “Charlie Bit My Finger” YouTube video decided to mint an NFT of the video while also removing the original from the platform. That NFT sold for over USD $760,000 and the buyer is the only person who has a copy of the video as well as a certificate authenticating their NFT. The high price of the “Charlie Bit My Finger” NFT and lower resale price of the Jack Dorsey first tweet NFT was driven by people’s hype and market forces.  

However, there is an NFT bubble – just like there was when the internet was first introduced, 

Referring to the internet bubble, Dr. Ozair said: “There was a lot of hype. People bought into this hype and invested in all kinds of unrealistic startups that we don’t even know the names of today. They are lost and forgotten forever.” 

“But there were a lot of those. And out of these thousands and hundreds of thousands that were batch experiments or scams or frauds or whatever you want to call it, there’s always going to be something that is very valid like Amazon.” 

Similarly, Dr. Ozair posits that the same thing can happen with NFT. Once the fad dies down and many of the NFT-related ventures go bust, a few will survive and will be remembered as history.  

“Beyond the hype are the business use cases,” noted Dr. Ozair. 

 

The minting and monetizing of NFTs 

 

What sets NFTs apart from a fungible token – like a $1 dollar bill – is the fact that NFTs are a unique token containing a smart contract that is not interchangeable in the same way that $1 dollar bills are. 

“NFT is a smart contract, and in the smart contract, you put down there all the rules or the rights, or kind of documentation of the originality and authenticity of that asset, whether it’s digital or physical,” elaborated Dr. Ozair.  

Rights of the creator to rights of the holder, transfer of ownership, monetization, royalties, certificate of authentication, and more can be contained within the smart contract of an NFT. 

NFTs also cannot be copied since it is created on the blockchain and therefore has all the features of the blockchain. NFTs are immutable. They cannot be changed, forged, damaged, or deleted. An NFT is created with a timestamp that is authenticated and cannot be altered. So even if future iterations of the NFT are created, the original is still its own thing and cannot be changed even by the original creator. 

This characteristic NFTs allows for potentially interesting uses in a business context apart from investing or buying art pieces. 

“The power of NFTs is the authentication,” she said, adding “You can authenticate everything from digital assets to physical assets. So, it gives you a certification of authentication [to say] this is the original.” 

In particular, NFTs could have a significant impact in the world of copyright and intellectual property.  

 

NFTs for protecting intellectual property 

 

“There is a lot of content out there that everyone has copied and downloaded. How do you protect that? How can you make sure that you’re getting the right royalties?” Dr. Ozair pondered, adding that she is experimenting with this herself.  

For example, creating NFTs of her own content or audio files. Rather than investing or buying NFTs of art, using NFTs for content creation instead. 

One example of a major organization that is dabbling is this IBM’s collaboration with IPWe, a Paris-based company that founded the world’s first global patent market, to create NFTs of intellectual properties (IP) or patents.  

The IP or patent itself will be registered with the relevant governing body and officials as it traditionally would be. However, the tokenization of the IP or patent – making an NFT of it – can be done for monetization. When the NFT of a patent is sold, the stipulations regarding the rights and ownership of the patent are contained within the smart contract.  

A creator who sells an NFT of their patent may allow the buyer to use the patent now that they have bought the NFT, but the actual patent rights remain with the creator. It is a way of both protecting the rights of the patent owner and allowing them a different avenue to monetize their patents.  

The business use cases of NFTs in rights authentication could be endless. 

Apart from intangible assets like IPs, there are also companies minting NFTs of tangible collector items such as bottles of liquor. The Block Bar mints NFTs of collectible liquor stored in a warehouse in Singapore. Each bottle has an NFT which can be sold and traded to anyone around the world without the bottle actually changing hands. 

This works because of the smart contract which authenticates the bottle and ownership. It is a model that opens opportunities otherwise unavailable in a traditional system. Authenticating a bottle of single malt scotch without the actual bottle in a traditional system would be cumbersome and costly, involving attorneys and notaries.  

On the other hand, an NFT which contains a smart contract that authenticates the physical bottle makes it an easier process to transfer and trade ownership of said bottle over time on a digital platform.  

“Theoretically speaking, this concept of trading hands from one person to another verbally, because if it sits on a box, then anyone from all over the world can buy it for years. Until someone decides to have the actual bottle and open it up and crack it and then ‘burn’ the NFT, and it doesn’t exist anymore,” explained Dr. Ozair.  

 

Scam or legitimate investment? 

 

Of course, this then raises questions of legalities. The world of NFTs has been plagued by concerns over the decentralized nature of the asset and the lack of regulation by central banks. This is where many arguments lay about NFT scams. 

The challenge here, according to Dr. Ozair, is understanding the structure and purpose of any single NFT on a case-by-case basis as not all NFTs function as securities.  

For example, an art NFT is not a security in the same way that a physical piece of art is not. The NFT is merely a tokenization of a piece of art. Similarly, monetizing a piece of IP by minting an NFT of it does not make it a security. An NFT only becomes a security when it is fractionalized and traded as such.  

It all depends on the structure and purpose of the NFT. 

“There is no difference between what we have in our traditional system and the digital system. The fact that it’s digitized doesn’t change the concept of what it does,” Dr. Ozair explained.  

However, she also noted that the current regulations on NFTs remain murky.  

“As of now, we don’t know exactly what the status of NFTs is, but they have been traded over the world,” she said, adding that she is in discussions with US and European regulators as part of INATBA to try and understand and work with them on the different possible uses of NFTs.  

“We’ve been working on proposals to submit to the EU, the European Commission, about the regulation of the entire space from defi (decentralized finance) to NFTs to DAO (decentralized autonomous organizations),” she elaborated. 

Having said that, she assuaged concerns that NFTs could be a scam. Though it is inevitable that NFT-related frauds will crop up, Dr. Ozair noted that any investor should do their own research before making an investment as they would with any other type of asset. 

Dr Ozair said: “You do your due diligence for any investment that you do anyway, so why not with NFT just because it’s a hype?” 

All the information an investor would need is contained within the smart contract of an NFT, after all.  

 

Careers in NFTs 

 

With that in mind, Dr. Ozair also addressed the question of careers in NFT development and the relevant skills and knowledge that are required in this new field, both technical and non-technical.  

From a technical perspective, Dr. Ozair notes that NFT developers must have the right skills to create smart contracts. As NFTs as essentially a token, and a token is a smart contract that needs to be coded, this is a skill that is essential for developers working in NFT.  

There are also skills required from a business perspective.  

“You have to think about what is the business use case? What is the problem that you identified and how do you want to solve it, and whether NFTs will be the right solution for that,” she explained. 

Overall, as the novelty of NFTs begins to wear off, the potential impact it could have on fields such as intellectual property will be more evident as it is further explored. It is not so much a question of if NFTs make good business sense but how can businesses tap into the many potential uses of NFTs that suit their needs.   

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Innovate faster with cloud technology, a data strategy and digital capabilities

Those who want to innovate faster in today’s dynamic and rapidly evolving market have to keep learning and changing in line with customer experience, process and technology trends. These changes are necessary to find new ways to add value for customers, increase sales and optimize processes. For us, these changes involve balancing the use of cloud technology with a data strategy and digital capabilities. Together, these three things enable the process of digital transformation.  

 

Accelerate innovation with the cloud 

 

Most small and medium-sized businesses spend around 80 to 90% of their IT budget on keeping existing systems operational. This leaves little to invest in innovation. Innovation involves experimenting and ineffective experiments can be very expensive. With cloud technology it is possible to carry out experiments at low cost and pull the plug on experiments that fail to deliver. Cloud technology is indispensable for companies that want to grow. It is also a critical component of digital transformation.   

 

The cloud as accelerator at Dat.mobility 

 

Our customer Dat.mobility has discovered the potential of the cloud as an innovation accelerator. With AWS cloud technology the company can meet the needs of the market faster and with greater agility. Peter Kant, innovator, strategist and product owner at Dat.mobility:    

“Luminis helped us develop a digital transformation strategy that included transitioning to the AWS cloud. They guided us through everything involved, from securing internal and external stakeholder interests to identifying possible transition paths, designing conceptual (cloud) architectures, right-sizing and developing business cases. This enabled us to make the right decisions to better meet the needs of our customers.”   

 

The importance of a good data strategy   

 

In addition to transitioning to the cloud, for most businesses a good data strategy is essential to develop innovations. Smarter use of data is the key to success both now and in the future. So rather than looking at the applications used, we focus on the available data, because that’s where the real value is. Our modular data strategy ensures controlled data mobility so our customers can access the right data faster.   

 

From data to engagement with the energy transition at Omons   

 

Our customer Omons, an initiative to support citizen engagement with the energy transition, is a good example of how this can work. In each municipality, there are different priorities, rules and conditions. These include things such as tax rates and per-kWh price. Omons had to find a way to make a huge amount of data and complex calculations manageable for citizens and asked Luminis to help. There needed to be one platform that could be used by people in different municipalities, while also allowing for differences in legislation and regulations. Based on feedback from workshops, we developed a cloud-based solution that helps increase citizen engagement while identifying and communicating potential cost savings.    

 

AI translates science into reality at Whispp   

 

Whispp is a cloud-based speech-enhancement solution that enables people who stutter and those with a voice disorder to have a relaxed and (almost) fluent conversation.  Audio technology created with artificial intelligence digitally adjusts the sound of the speaker’s voice on a smartphone or laptop. Whispp can be used for live conversations as well as phone and video calls. Together with patient associations, medical specialists and universities, Luminis was involved in the creation of the product from the first study onwards. The process involved converting ideas and theories into a valuable speech-enhancement solution – one that is scalable.  

 

Digital capabilities – the missing link  

 

Digital transformation involves both technological and organizational change. In addition to implementing the necessary technology, in-house knowledge and expertise are also needed to keep innovating in the future. Addressing security, improving accessibility of data and implementing an Agile way of working to achieve value creation faster and more effectively are all key in this respect.    

To keep innovating at product level and provide customers with what they need, it’s important to keep growing your in-house knowledge and expertise. To help with this, we employ gamification of knowledge with Cloud: The Game and the Cloud Proficiency App and our Accelerate process, in which together with our partners we train the tech leaders of tomorrow.   

 

Growth opportunities for every organization 

 

Identifying, exploiting and maximizing growth opportunities is our area of expertise. We are known for our creativity, our vision when it comes to the cloud and data, and our expertise in implementing digital transformation processes. We help organizations increase their capacity to think strategically and execute accordingly while continuing to develop their knowledge.  This is how we accelerate innovation and growth for companies that want to be ready for the future.  

 

About Luminis   

 

Luminis has been generating creative ideas, innovating and doing things differently for 20 years. This makes us the perfect innovation partner for companies that want to innovate. We are a team of inquisitive minds and diverse personalities, proud to help our customers get smarter about data and harness the full potential of the cloud. We will be happy to help you discover and maximize your potential.