Tuesday, December 24, 2024

Interview: How Green Cargo Revamped Its IT for Logistics Success

Ingo Paas stands out as a CIO with a distinct perspective on his role. He’s not shy about sharing his ideas, and his bold approach seems to spark change wherever he goes—often leading to dynamic discussions.

Let’s rewind to September 2019. Paas was doing well at major European companies like Ericsson and Adidas when he took the plunge into a different arena as CIO of Green Cargo, a Swedish state-run logistics firm rooted in rail transport. With electric trains accounting for 98% of its tonne-kilometrage, Green Cargo operates with minimal fossil fuel use compared to other logistics companies. They promote what they call “climate-smart transportation,” allowing customers to create sustainable supply chains across Scandinavia by prioritizing rail over road.

While Green Cargo may lack the brand recognition of Adidas, it has its own heft—around 1,800 employees and sales of SEK 4.2 billion (€360 million) in 2023. But when Paas stepped in, the situation was far from straightforward.

Paas describes his new role as a “mission impossible.” The company’s IT landscape was cluttered with two mainframes, an SAP system, and numerous ERP solutions. He found a chaotic environment lacking any real IT structure or information security; when he asked for a Chief Information Security Officer, he learned there wasn’t one in place. Instead, he was handed a policy on Microsoft Passport, supposedly effective, but that was it.

Paas needed to unravel the confusion stemming from poor management decisions that left the IT department bogged down with legacy systems. Initially drawn to Green Cargo by an energizing conversation with the CEO, he soon realized it was a much smaller and different environment than what he was used to. After about six weeks of surveying the landscape, he made a bold ask of his fellow senior executives: forget their existing plans and trust him to approach change in a new way.

Instead of rushing to replace the mainframe and SAP systems, Paas pivoted. His focus shifted to risk reduction and enhancing the IT team’s responsiveness. The goal morphed from executing four large releases—none of which performed well—to rolling out 300 smaller updates each year. He emphasized building a digital foundation that would allow for reusability and scalability without dependence on external factors.

The atmosphere was charged during those early discussions. Paas presented his vision with just seven PowerPoint slides, a radical departure from the typical 200-slide briefings they were used to. He urged his colleagues to see beyond the slides: “Look at me. I’m taking responsibility. We need to focus on managing our core risks.” When they pressed for a formal business case, he was honest: “I don’t have one. I can’t prioritize because I’m still figuring out the scope of our challenges.”

This candid approach opened up dialogue. From that pivotal meeting came what Paas calls a “hybrid integration platform,” rooted in his belief in digital composable enterprises. He’s even written a book on the subject, showcasing it as a pathway to agility and interoperability for businesses.

Paas stressed the importance of exploration and adaptation. Organizations often chase buzzwords like generative AI without fully defining the business problems they want to tackle. He aimed to shift Green Cargo’s focus toward adaptable solutions, embracing uncertainty while collaborating with suppliers to gain insights into both challenges and opportunities.

He looked to low-code development, Google Compute Platform, and democratizing access to data through Microsoft PowerBI. This transformation required a delicate balance; it wasn’t simply about relying on vendor capabilities but fostering autonomy within teams and across the organization. Services became owned by the relevant business units or IT, removing barriers for high-performing individuals and teams.

But this journey was as much about culture as it was about technology. Building trust was essential. Without it, real change couldn’t happen, and old relationships needed to evolve. He worked to inspire people, reassuring them they now had the authority to drive initiatives forward. “Your mandate starts today,” he told them, while guiding them to engage in productive brainstorming and innovation.

Now, Green Cargo is experiencing the rewards of this audacious shift. Paas is committed to a progressive IT approach that challenges the norm. He emphasizes that true resilience must originate from the core. If organizations want to pivot quickly, they must address the foundations decisively—time to change course if you find yourself on a train to nowhere.