 Live from Las Vegas, it's theCUBE, covering ServiceNow Knowledge 2018, brought to you by ServiceNow. Welcome back everyone to theCUBE's live coverage of ServiceNow Knowledge 18. We're coming at you from Las Vegas. I'm your host, Rebecca Knight, along with my co-host, Dave Vellante. We are theCUBE. We are the leader in live tech coverage. We're joined by Sebastian Lorayche. He is the global senior director IT, Cybersecurity Digital Transformations at NXP. Thanks so much for coming on theCUBE, Sebastian. Thank you for having me here. Good to see you. Good, thank you. So I want to start out by asking you a little bit about NXP, what you do and then what your company does and then also what you do there. NXP is the leading semiconductors in providing products for automotive and our company vision is providing us your connections and infrastructure for a smarter world. And that's what we are trying to achieve by implementing new ways of working with making the world more autonomous, like autonomous driving, et cetera. So that's really what we're trying to do. Cool company. Yeah, very cool. Yeah, we are really building the future of tomorrow. Yeah. Big, large company too, right? Yeah, roughly about 33,000 employees currently. Okay, yeah. So you said you're really building the future of tomorrow. I'd pack that a little bit. Tell our viewers exactly what you're doing there. So today what you have experienced also on this event is of course a lot about artificial intelligence and machine learning. NXP is being elected as the number three in the world as the provider of solutions for artificial intelligence. So if you really think what we are developing today is already started and will become available in five or three years from now. So you only can imagine what the future brings us and what we will shape. When do you think owning your own car and driving your own car will become an exception? Driving your own car, you won't own a car anymore. Yeah. And it will be some kind of hub that comes to your home on demand when you need it. And maybe it even predicts when you would like to travel and then it comes by automatically. How far away is that? You think it's two decades? No, I think here it's not about technology. I think we have the technology to even enable it today. It's policy and... It's policy, it's regulations, compliance, see that doesn't allow to, let's go, harvest all data to make the right decisions there. We had the insurance company on the other day and they were like, no, we're going to figure this stuff out. Because I don't necessity. We always figure this stuff out. Yeah, it's really not about the technology anymore. It's really about legal. What prevents us access the data to make the right decisions, right? It's amazing to just watch the progression of automotive. I mean, they're basically software-defined vehicles now with, I mean, how many semiconductors are in a car now? Yeah, but also you can clearly see within any speed that we are transforming our business to more software because developing a product as hardware that needs sustained for 15 years or longer if you look to a car. Yeah, then you would like to have the ability to be dynamic more on top of the product by using software. So also our products are becoming software-defined. So you're a very R&D-centric culture. Yes. Maybe talk about that ethos and the cultural aspects and maybe what the process looks like and share with our viewers. I think it's the most awesome part of the company. Of course, we also manufacture our products but mainly R&D is so dynamic. We have so tech-saving people and we have so much issues as IT and you think, why are they consuming so much bandwidth from Netflix and noon? And then they tell me, hey, we are developing a product for 4K entertainment into the car. So I have an issue on my wide air network. You're providing all kinds of services but you're building for entertainment into the car for the future. Yeah? That car better be autonomous. Yeah, exactly. Yes. That's for the kids in the backseat, I think. Yes. You once described service now as the platform of platforms. Can you talk a little bit about that from your R&D process? So what you clearly see and also you would like, I think all companies will eventually become an IT company. Also the banking companies tell us now today they are an IT company with a banking license. What I truly believe in is that we need to close the gap between IT and the business. So I think the future model is that IT will dissolve for a certain part into the business. But you don't want to have, of course you still have your shared services, you still have a hybrid model where you have the countries where you're providing support from. So they are not always as close to the business. You have 24-7 economy and you need to provide those services. But you don't want to build as human interfaces. So what you try to achieve by building the platform of platforms, the fabric, is that you try to connect the business acumen, the business dynamics, their project management tools, their requirements management into the IT systems as such you can detect the phase where they are in. If they are facing issues with their products or the projects are slipping and are delaying, you would like to increase automatically the severity of the incidents so that they can automatically solve and you have a better understanding of the business priorities. NXP is really interesting because you're at the intersection of a lot of big trends. I mean you're a hardware manufacturer, hardware manufacturers, your software developer, security, AI, IoT and underlying all this is data. Yeah, the new money. Yeah, right. So I'm just envisioning this pretty complicated matrix. I wonder if you could describe that in your terms. If you look from the IT infrastructure perspective, the growth on data is enormous. To cope with that growth because the data allows us to make better products. You can, data could be a requirement but could be also the effect of the results. What we try to prevent, the product that we bring into the real life that are, you fill your requirements of quality is increasing. We had consumer grade, automotive grade and we had for the flying industry, we also the same grade. But however, your norm is increasing. So what you clearly see by increasing the norm, we call that the total quality culture, you also would like to have a total quality product. You don't want to replace your phone one year from now. And I think if you look four years back, a phone one half years, two years and then you had a new one. But those products become more expensive. They become more part of your daily life. Part of your personal brand even. And that generates that data. We need to, if you try to work on proper quality that will generate enormous amount of data. But the data can use to optimize your processes upfront in the future as such it becomes more cost efficient to develop new products. So it's really about the continuous need for more data is also continuously need to optimize your processes. Where does service now fit into all this? How do you use service now? So for me, what you really see in service now today is the best workflow engine we can imagine. It really orchestrates all IT and connecting business processes. And I think the potential, and I think also if you're looking to the portfolio where they have HR, it's going beyond IT. And now they often what already said by John Donohoe, they come in via the IT angle by ITSM. But as the process become more and more part of your culture rather than a forced way of working then the platform starts supporting the culture of your organization because by machine learning a proper UI visualization capabilities it becomes really part about metering, showing what you're doing and really helps you to orchestrate your daily work. And that's also I think of the new company it's a little bit too difficult to pronounce it here but it's about orchestrating the future way of working. So we're just, we're hearing so much about this making the world of work work better for people. You describe it as a workflow engine really helping employees organize their work days, orchestrate their work days, improve them. Can you describe the culture at NXP and sort of how service now is improving employees everyday lives? What we really try to do and that's also what we see. It's easy to show the cost efficiency savings you have from a platform as service now. If you improve your onboarding by optimizing the process by three days because that's your first point of engagement when you bring some people onboard and if it goes fluently work the integration with service now providing the services, everything is ready at day one. Day one you're there, your laptop is ready your provision, your desk is ready and you have orchestrated processes that's a flawless end user experience and that's what we would like to provide with service now, orchestrate with service now because that's what the user sees. If he's in need of any of the help of services he would like them to go shift left to service now and with help of knowledge help themselves. We are all Dr. Google and we would like to have access to that information ourselves and not being dependent by the expert. We all become that expert. Are employees happier? I mean I think that's a question too because we know that from research that happier employees make more productive workplaces they're more likely to stay recommended to their friends and the network gets bigger. I mean what's your- If you have a company that shapes the future we have very happy employees. Self fulfilling prophecy there. When did you go live? So we are one of the first adopters in 2007 in Europe so we really started then. I don't know the name because they talk about days, months and now they talk about locations. But I think we did a big overhaul during some of our big integrations that we have done. So we are really one of the first customers in Europe providing the product. And how far where, what version you in? In Jakarta, ready to upgrade. We will skip one release if we go to- To London. Yeah, run to London. Oh, okay. And you started with ITSM like most? ITSM, ITOMS or IT Operate Management and now we have the IT Business Management app like Demand Management, IT Financial Management and really orchestrating from demand to fulfilling. A lot of our guys have written that they feel like machine intelligence and ITOM go together very well. Do you agree with that? And how do you see that affecting your business? So what we clearly see is that in the meantime to detect, in the meantime to repair you would like to detect outages before they hit the end user, see it? So you really would like to make sure that before they notice it's already been solved. Or when it goes wrong, that you already say we are on top of it. We know, we know the impact. We know that the whole chain of events, a single network port or power outage somewhere in a room could cause a big effect on the whole IT service. And therefore really, service now helps us to make sure that we are on top of the things. Sebastian, you mentioned off camera that you are very intimately involved with service now and helping them with their roadmap, providing feedback. So can you share with us some of the things that you talk about with them? And what would you like to see? Where's their white space? What's on their to-do list from your perspective? So what, of course, if you look to our portfolio, what we are doing as NXP, so a member of the product advisory council for IT operations management. And I'm closely working also on the Lighthouse program with service now and all kinds of new releases. What I really think, if you see what they are investing to, of course, they're now coming forward with a chat box. Awesome. But if I see how my children consume information using YouTube, and I think also John touched upon it. But really what we are building as NXP is in the flawless and use experience and everything is being, you don't have a UI. If you look to your car, today you have a speedometer, an RPM meter. Why do you have RPM on your dashboard? Why? What's the value of you knowing? In the past, you needed it to shift gears. And why is it still there? Does it really add value? Because it's cool. Yeah. You love dials. So it's about the end user experience. It's about your lifestyle. It's about your brand identity. It's not as more about requirements. So, of course, the UI is important. I believe it. What's more important, I think, to invest in that engine behind it, machine learning, artificial intelligence, and how to ingest data. So, because what is really required to make smart decisions is a lot of data. And still, I think the platform has potential. But there's some room for improvement to get proper integration by onboarding more data, making the right decisions and orchestrate the actions out of it. And I think the Learn, Think, Act, we have the same strategy as Sense, Think, Act, and NXP. I think that's how robotics and AI will work in the future. Data is the fuel for your innovation. Yes, yes. So, that's a great point you're making. I wonder if you could talk a little bit about the feelings in Europe. You're based in the Netherlands about automation and the future of jobs. Because in the United States, there is a significant anxiety about the machines coming for our jobs, and at least the media portray it that way. I'm curious from your perspective, what is the feeling in Europe? Of course, I think I see it as an opportunity, but automation will change, of course, and automation, machine learning, it will extensively change the whole way of working. Because what we say, say it's about helping the business by decision, automation, making decisions. So we try to reduce the human effort. We have total quality culture. Or do you still need more and more people to help them to ask the right questions? Because the innovation, of course, comes from a lot of data, but still have people who connect the dots of never existing connections before. If you have a lot of data and you don't know which question to ask, would you build a new solution? So it's still about smart people and creativity, and of course, we know patterns, we know what people are doing, but still the real breakthroughs is being done by people, and therefore we need those people still in the future. So the anxiety is there, yes, automation will there, but I think it's about building a joint incentive between your outsource provider, research provider, between your workforce, is what's the incentive for them on automation? Because otherwise you get a culture of fear and anxiety and a lot of doubt, and that will be counterproductive for your company value, yeah. Who do you think is a journalist? I mean, you're right, the mainstream media talks about this a lot, and they're actually accurate. The data is there to suggest that machines are replacing human and cognitive functions, and that's a concern, but there's not a lot written in the media about the opportunity, there is some about the opportunity, but more importantly, what to do about it. In other words, public policy, education, I mean, maybe I'm just missing it. No, I agree with you, I completely agree, and also this idea that Sebastian is bringing up is showing, proving that this can work for you. I mean, this is actually going to improve your work life by taking care a lot of the dredge work, or show opportunities for humans and robots to work alongside of each other, and so there you go. Well, in tech you better be an optimist, you know? It seems like Musk and Stephen Hawking really weren't optimists, but maybe they're thinking, you know, hundreds of years. Light years ahead. Right, right, right. You report directly to the CIO. At this conference we're hearing so much about the changing role of the CIO and how the CIO has to be thinking so much more broadly about the business than ever before. I mean, well, how do you see it? So that's an interesting question because that's exactly where we are in today. So we have the classic way, the CIO, financial risk control, et cetera. Then we have the transformational CIO, then we have the CDO, or we have the future COO who takes care of operations because today IT is often been seen in the enterprise companies as a shared service center, something you do with the lights off. But clearly, bank accounts, but I'd already told you before was, we are now IT companies with a banking license. As IT becomes more dominant, it becomes part of operations. And yes, we need a transformational CIO, CDO or a new type of COO that sees IT as part of their operations and the way of working. And of course you can give it a new title, but at the end it's just a smart guy who helps the company succeed and brings IT as one together to make success. It's not about a role or responsibility. I think there's still the name of Chief Information, Chief Data Officer. It's still the right title because he makes sure he gets the right data towards the business to make the right decisions faster. Right, great. It's not about running only the lights on. When the lights doesn't go on, it's IT's fault, right? Always, always. Yeah, that need doesn't go away, but it's table stakes now. Exactly. Sebastian, thanks so much for coming on theCUBE. It was a pleasure having you here. Thank you. I'm Rebecca Knight for Dave Vellante. We will have more from theCUBE's live coverage of ServiceNow Knowledge 18 coming up just after this.