IFS Labs: Making enterprise software futuristic

IFS Labs Director Bas de Vos  

By Hiyal Biyagamage    

IFS Labs, the special innovation unit of the Swedish global ERP (Enterprise Resource Planning) software giant, is responsible to look beyond the common frontiers and the scope of enterprise software and use innovation as a platform to decide what the next big thing for enterprise software might be.

Looking at IFS Labs’ mandate, IFS Labs Director Bas de Vos has a tough row to hoe but he says his job is the coolest job within IFS. In an exclusive interview with Daily FT, Bas talked about his role, the importance of research and development for organisations and the new technologies which IFS Labs is currently experimenting with.

Below is the full excerpt of his interview:   

Q: Modern organisations would love to break barriers and conduct research and development (R&D) to innovate new business solutions to be a key player in their respective businesses. In the modern context, how important is it for an organisation to pursue research and development?   

A: For IFS, it is very important. Innovation has been a key element in IFS’ DNA which made the company to be recognised by Gartner and to be a leader in two different magic quadrants – Field Service Management and Single-Instance ERP for Product-Centric Midmarket Companies. To be a leader, we need to keep innovating and we need to make sure that we are always considering the latest trends, what our clients want today from us. That is the only way to make sure that IFS delivers what the client needs tomorrow.

Q: How does IFS Labs look at R&D since innovation is a key element in your mandate?

A: If you look at research and development within IFS Labs; we focus a tad bit more on research. Everything that comes out of IFS Labs is not directly a product. We develop concepts, proof concepts and prototypes. However, lot of the products have to be passed as proven from the Labs. But then there is always a research project and an innovation project that we do within IFS labs and in a given timeframe, we have to show proof that this is going to work for our clients or not. 

If we say a certain product is something that we want to incorporate in the mainstream development, it will be transferred from Labs into the product groups. One of our engineers will support the product group to make sure the transition of the new product goes smoothly. Then you will see a different speed of development because we need to be sure that it is secured in our product line. 

Q: Being the head of IFS Labs makes your life tough and challenging?

A: I guess it is the coolest job within IFS I would say (laughs). My job in general would be translating innovation ideas into business concepts, making prioritisations, represent IFS at different technology seminars and talking to analysts to explain what IFS Labs is doing. IFS Labs is a very different team within IFS. So I guess it is a very special job but not tough.

Q: What are the new technologies the team at IFS Labs is trying out?

A: Currently, we are still very much interested in wearables which bring so many opportunities. Recently, we released the first application for Apple Watch. We have been doing several proof concepts with Google Glass and Sony Smart Glasses. These are things that would ensure a spot in the near future because we don’t see too many Google Glasses in workplaces. However, it has become a trend and markets are moving towards wearable gadgets which make the entire thing normal. At IFS Labs, we question ourselves; if this gets normal, should IFS be ready for that and what do we need to do? 

Internet of Things (IoT) has also created a huge buzz and I believe it is one of the biggest trends in IT today. As Labs, we have a very big role to play in developing solutions that meet the needs of IoT. Five years down the line, IoT will be a common element. Last year, we have started doing research projects based on IoT and we are transitioning that towards a stage where it sums up to a workable solution. 

Another interesting aspect is BIM, Building Information Modelling. It is being used in the construction industry which is a big trend. It is basically a 3D visualisation of an asset or a building and it contains all the data of the asset. Apart from these, we do research on new technologies. We are doing a collaborative research project with Microsoft on Power BI to see how IFS applications could be integrated with Power BI and see the possibility of delivering a solution. Those are few projects IFS Labs is currently concentrating on.

Q: IFS Sri Lanka represents a major stake in the local IT sector. How does IFS Labs help the company to grow in the enterprise software landscape?

A: Quite a bit. I think we help in two different ways. IFS Labs at the end of the day is there to help develop new products and act as a part of investment guidance. We monitor new trends and we advise the R&D management team. If you look at IFS, you have R&D and different regions. Those regions are responsible for selling, implementing and supporting software while R&D helps to deliver new products. As an investment guide, we observe different trends and provide guidance to the management on where should IFS invest money next, what to build and what not to build. 

I guess inspiration plays a key role too. Not only to ourselves but inspiring customers on what is possible to achieve using IFS enterprise software, what they can do today to increase their business opportunities and what they could do tomorrow to be a leader in the industry they represent. Most of our customers might have not thought about using Google Glasses in their workplace right now. Even IoT; some customers might have thought about it, some might have not. But we try to provide inspiration to our customers and to the rest of IFS to seek these trends and feel what is in store for them. 

We also try to influence analysts and customers. Not in a bad way but to show them the correct path where technology is moving. IFS Labs is a small unit within IFS but we are an important component inside the IFS machine.

Q:  Gartner predicts that by 2020 there will be 50 billion devices connected to the internet. A technology like IoT is going to play major roles in different industries. Yet, countries like ours are still way down the pipe on using these technologies. Why do countries and organisations still fear to innovate on top of these platforms?

A: Let me turn that question around and ask you why do you think IoT is going to be the next thing? That is very simple because the potential for business is very big. In Norway, we did an IoT proof of concept for a client called Sporveien. Sporveien is a municipally owned public transport operator in Oslo, Norway. The train doors have little sensors attached to them. Sensors will collect door data, predict the needs for maintenance, and provide alerts for emergency repairs – all of which increase productivity. 

The system would make the trains in Oslo more efficient; no longer would faults in the doors cause delays; no longer will the harsh cold of winter take trains off the tracks for unnecessary pit stops. What is amazing is that these little sensors will predict what is going to happen, by accessing data stored in a cloud. 

I think that IoT has not kick started yet because many organisations feel it is a huge investment upfront. Customers need more proof to try IoT solutions out. There is a lot of uncertainty in the landscape as well and incompatibility between different platforms. Would all my devices react at the same time? Would they talk to each other in the same language? There is an issue with old devices as well. For an example, Netherland’s energy operators are doing a large-scale rollout of smart meters. In this business case, we are talking about roughly six million devices. Since the old electricity meter has no capability to incorporate IoT technology, operators have to replace all the old meters with new smart meters. 

I guess with more devices coming to the market, implementing IoT projects would be easier.  Fear of security is also there. That is one of the biggest challenges within IoT. If I hack into a smart meter, I am basically hacking into the network of the energy supplier. Issues regarding security need to be resolved soon. Those are couple of reasons why new technologies like IoT do not have much popularity yet. 

Honestly, if you look at a country like Sri Lanka, implementing IoT solutions might be even a step lower. I guess it has to do with the less number of business cases in the country. Many business cases in IoT will be about replacing manual labour and the ratio between the price of the technology and the price of labour is different in Europe and USA than it is in Sri Lanka. It also stands where the economy is right? That is a fact of how the labour market has built upon. You are not going to invest millions in devices to replace labour if that costs you less.

IFS VOX- Intelligent Virtual Assistants on Smart Phones

Q: Experts say that cloud technologies are going to play a critical role but it is not the panacea for every solution. Do you agree on that?

A: I think cloud is here to stay. Five years ago, it had not much recognition from businesses but it is not the case right now. Organisations need cloud but I don’t believe it is the solution for each and every problem. I think clients still will still take their own decision but in years to come, more and more clients will move towards cloud. Security issues are getting lesser day by day. 

Going forward, cloud will be very important for organisations and IFS does offer a comprehensive global cloud offering for our clients. But every organisation will not migrate to cloud. Organisations have their own data centres and their stuff in-house. When you look at governments, cloud is playing a vital role in public services but every public service component will not reside in cloud. Cloud will grow but it will not be the Holy Grail for everything.

Q: A complaint that we always hear in large organisations is that they struggle to innovate under constant pressure to deliver. Yet, small, entrepreneurial companies thrive on innovation and have the freedom to try, test and keep or discard new ideas. How do you sustain innovation in an organisation? Would a startup culture inside a big organisation bring changes?

A: I am not so sure. I have worked in both environments. I joined IFS last summer when they acquired VisionWaves, which was founded back in 2000. When I started at VisonWaves, it was very much of a startup. Yes, we had all the freedom to innovate and we didn’t worry about failures but then again, there is only a limited distance one could get with that experience. I guess both these parties (startups and big organisations) need to strike a balance in what they do. If you want to keep your clients satisfied and want to meet your product goals, you need a part of your organisation to work under pressure and deliver the output. 

There are ways to sustain innovation within big organisations. You can motivate and encourage people. What I try to do at IFS Labs is to recognise people and understand their pain points. You need to approach people and discuss about their issues. You need to create that balance between the product line and innovation. At IFS Labs, we pretty much have that startup culture. There are no deadlines and no need to succeed in every project you do. The team has been given the license to fail. That is how we seek balance at IFS. 

Q: How do you see IFS’s partnerships with other technological partners? How do they help your journey?

A: There are two types of technology partners. First we have independent software vendors (ISV). They build their own stuff using IFS applications. This helps IFS applications to garner momentum and grow as products. It fills customer needs that we are unable to fulfil. ISVs help us to build a great reputation for IFS applications on specific functional areas.  

On a larger scale, we have a solid partnership with Oracle and Microsoft. We have been recognised globally by these two partners. They provide us inputs, invite us to talk about our technologies in their conferences and help us to grow as a company.

Q: A bigger problem if you look at it in a developing market perspective is migrating to a new ERP system. Organisations tend to keep their legacy systems intact, rather than changing gears with a brand new ERP package which involves a complex procedure. How does IFS look at this and address this issue?

A: If legacy systems are working fine, companies tend to keep them. But in most cases, it has an end of lifecycle. You cannot expect to work in a legacy system for a longer period, if only your expertise is getting more expensive. IFS is more component-based which means that if a client buys IFS enterprise software; they don’t buy the whole package at once but a component. If a client is really reluctant, we would encourage them to start with buying a component and try it out. Try it out and see if the client could build trust within the organisation to move away from their old systems to something new.

We would sit down with the client personally and speak with him to capture the processes of his organisation. In many instances, the client realises himself that the old ways are always not the best way. In another context, many of the legacy situations occur when people start adding a heap of customisations into legacy systems. I am a believer in configuration than customisation. I must say IFS platform is a configurable product and that is the how it should be.

Q: What does IFS Labs prefer the most? Virtual reality or augmented reality? 

A: Virtual reality is a cool thing (laughs). But using virtual reality for business applications is kind of too optimistic. I am not saying it isn’t going to be there but if I look at today, I find it a little bit difficult to see how it is going to work in the business space. You are in your office and I am in mine and we are doing this interview using virtual reality; doesn’t sound right for me. Virtual reality could be used well in education and medicine I believe. 

IFS Labs is more engaged in augmented reality. You take your phone and point it at some object and instantly you get information about the object using augmented reality. This is a trend that we will continue to monitor and will continue to see if there are any potential areas we could try that. I see augmented reality is a step ahead of virtual reality when it comes to business applications. 

As IFS Labs, it is not like we are sitting in a closed room and do whatever we like. We talk to our clients and we love to talk to them about the projects we do. That helps us well in our journey of innovating new products. 

Pix by Lasantha Kumara