Adam Smith worked for one employer, FedEx, for nearly a quarter 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.
Companies have repeated the mantra, “Compete together, operate independently, manage together.” Revenues have grown, but so has technology complexity.
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, 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.
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 were developed: one that guaranteed delivery at an exact time the next day, and an entirely different device designed to track delivery for a specific number of days. Now, FedEx uses one 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 increase efficiency under a single organization is by making data more easily available and shared. “We have a ton of data that we’ve collected over the years,” Smith says. “How can we leverage that data and give it to our customers?”
The data helps FedEx share more detailed information about the timing of deliveries, allowing larger customers to improve supply chain management. This is achieved through technology such as FedEx’s photo-based Proof of Delivery tool, which launched in 2022 and sends customers a photo showing their exact location once their package has 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 is another tech opportunity for Smith, who envisions “dark docks” of the future, human-free cargo facilities that use 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 groups. The first is leveraging capabilities developed by FedEx vendors like Microsoft, Salesforce and ServiceNow. The second is streamlining work being done at FedEx, including making developers more efficient with tools like GitHub Copilot. Finally, generative AI could transform FedEx’s core 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 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 The Wall Street Journal ReportsBut 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 has introduced Teams Copilot. At its Build developer conference this week, Microsoft Debuting new team co-pilotCopilot will be integrated with the tech giant’s video conferencing app to help manage meeting agendas and take notes that can be created collaboratively by all meeting participants. The Team Copilot feature will be available in preview mode later this year, with Copilot licenses starting at $30 per user per month. While Copilot aims to increase employee productivity and help improve workflows, Companies were 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 Inc.’s weak fourth-quarter revenue outlook has rekindled concerns about spending fatigue on cybersecurity services, as customers appear to be tightening their budgets even as they face rising attacks. Analysts say Palo Alto Networks and its peers are seeing slowing firewall sales, Bloomberg reported. ReportsMeanwhile, other product categories face stiff competition, resulting in shorter contract terms.
Adoption Curve
According to a recent survey by accounting giant KPMG, although some hurdles remain, such as uncertain investment returns and regulatory compliance, companies are increasingly using AI for financial reporting and auditing, and are deploying the technology for risk mitigation, data analysis, fraud detection and predictive analytics.
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 that the three industries most advanced in AI adoption are technology, media and communications; industrial manufacturing; and energy, natural resources and chemicals. KPMG also predicts that AI will account for 10% of IT budgets, an amount that will “grow significantly.”
Job Radar
employment:
– Theo AIUse predictive analytics to forecast the outcome of legal disputes Looking for a CTO Based in the San Francisco Bay AreaPosted salary range: $200,000 to $250,000 per year.
– Williams-SonomaFurniture retailer Seeking Vice President of Technology, Security and Compliance (CISO) Based in San FranciscoPosted salary range: $250,000 to $300,000 per year.
– Bramble, It is a logistics company. Seeking VP of IT for Americas Based in WashingtonPosted salary range: $271,000 to $406,000 per year.
Hiring:
– 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 is now CTO. Previously, Companies like Xensource, Citrix, OnApp, and more.
– Planet Home Lending Have Hired Bill Shuler joins as EVP and CIO to drive the company’s technology growth and improve operational efficiency. Prior to joining Planet, Mr. Schuller served as President of WPS Advisors LLC, where he provided consulting services to mortgage lenders and private equity firms.
– Media Monks name Laurent Farcy is appointed CIO. In his new role, he will be responsible for the consolidation and standardization of technology platforms.
– International Media Investments 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 take on the role of CTO, reporting to CEO Adam Malamed, and will refine the company’s digital strategy around new solutions, including AI.
