How Carlo Bozzoli Transformed ENI's ICT Department into a Software-Driven Company

Introduction

Carlo Bozzoli, the Global CIO at Enel Group, spearheaded the transformation of the company’s ICT department into a software-driven entity. This blog delves into the cloud transformation, digital strategy, organizational shifts, and talent acquisition led by Carlo Bozzoli.

Cloud Transformation and Digital Strategy

• The company operates in more than 40 countries and is one of the largest private utilities globally with 75 million customers.

• The global carbon emission from the cloud provider was around four percent, but this is expected to double in 2015. The growing computational capacity needed to support digital transformation in various industrial sectors will make health providers the new major polluter.

• Carlo Bolzori, the group Chief Information Officer of the NL group in Italy, has had a long career with the company, starting in 1984 and holding various positions before becoming the global CIO in 2014.

• ENI has a significant annual revenue of 88 billion and manages 2.2 kilometers of grid and over 100 gigawatts of stored capacities, with more than half coming from renewable sources.

• The company’s vision is to empower sustainable progress in the energy transition and work towards a brighter future through an open power approach that involves stakeholders in their business.

• Aside from energy transition and sustainability, the company is also facing the challenge of transforming from an asset-based company to a platform-based one, which requires a significant shift in mindset and operational processes.

• The company is navigating through complex global political and energy pricing situations, including dealing with cultural, economic, and currency fluctuations in its operations across 40 countries.

• ENI’s digital transformation started with a cloud migration in 2014, and by the end of 2018, they had successfully completed the migration, making them a 100% cloud-based company, which was recognized as one of the largest and most complex cloud transformation projects in the world.

Transformation of ICT Department into a Software-Driven Company

• The transformation of the ICT department into a software-driven company involved a shift in mindset and posture within the organization.

• The ICT department moved from being a cost center to becoming a business enabler and co-leader, leading to a significant change in the way they operated within the company.

• A key aspect of this transformation was the establishment of digital hubs within each global business line, where ICT resources were managed in an agile way, in collaboration with business units and with a focus on a shared business backlog.

• The new approach also involved a move towards developing products internally instead of solutions, resulting in a 25% reduction in development time, a 65% improvement in software quality, and a 30% reduction in the cost of internally developed applications.

• The shift in mindset and approach was supported by strong sponsorship from the CEO and a continuous push for new ways of working from the leadership.

Organizational Transformation and Talent Acquisition

• The company focused on setting up a digital lab to drive organizational transformation by bringing together the best minds from various departments, suppliers, and startups. This unique approach aimed to address transformation without creating parallel pathways or challenging internal organizational structures. The goal was to involve genius individuals and discuss key performance indicators (KPIs) for effective transformation.

• The company has made significant progress in its journey towards agile methodologies, which is not an overnight implementation but a gradual process. The IT organization has also experienced substantial growth, with the ICT team expanding from 1400 employees to 3000 in 25 countries, and aiming for a team size of 4200 by 2024.

• Recruiting the right talent has become a challenge due to the changing demands of tech professionals, including a preference for remote and flexible work. NL Group’s talent acquisition process involves screening around 1000 CVs to hire only 7 new employees, emphasizing the importance of aligning with the organization’s transformation goals and strategy.

• NL Group’s focus on energy transition and the goal to achieve Net Zero by 2040 drives the company’s software development towards sustainability. This includes reducing energy consumption in data centers and developing efficient, reusable code to support the transition to renewable energy sources and sustainable business models.

• The impact of NL’s goal to become Net Zero goes beyond the organization, as it aims to contribute to global decarbonization. This involves shifting to renewable energy sources, electrification, and sustainable software development to reduce the company’s carbon footprint and support environmental sustainability.

Data-Driven Approach and Organizational Transformation

• The organization started focusing on becoming more data-driven four years ago, prioritizing data accessibility and quality. Initially, they were a data-informed company, but then shifted towards a data-driven approach to decision-making.

• The implementation of a data card across the company, data-related courses, and hiring 200 data scientists aimed to empower the organization to use data for real-time monitoring and autonomous decision-making.

• The CIO’s role now involves ensuring that all employees align their daily activities with the organization’s strategy. This emphasis on strategy alignment is meant to foster a culture of informed decision-making at all levels.

• The CIO believes that ICT should be perceived as a business co-driver, emphasizing the need for aligning technology initiatives with business strategies for competitive advantage.

• The CIO’s management style is described as open, agile, and focused on changing traditional habits and hierarchical relationships. He values feedback and the contribution of ideas from his team.

• The pandemic has accelerated awareness about the potential of technology for driving change, and the CIO stresses the importance of being able to extract value from technology to support the organization’s goals.

• The CIO, being extroverted, intuitive, thinking, and judging, demonstrates strengths in inspiring and invigorating the team, fostering energy, and efficiency. He believes in open communication and engagement with employees at all levels.

Navigating Personal and Professional Growth

• The speaker emphasizes the importance of continuously evolving strategies to address personal and professional growth over an eight-year period in various countries.

• He candidly discusses his personality profile, acknowledging potential weaknesses such as intolerance, impatience, and emotional coldness, and the need to overcome these in order to connect with others.

• The speaker shares his development journey, including the realization that intolerance stemmed from the need for rapid change, but he has since focused on building more emotional relationships with colleagues.

• He describes his efforts to work on personal growth, seeking guidance from mentors and coaches, and adapting to different challenges throughout his career.

• The speaker credits his parents for instilling core values such as honesty, self-awareness, and the importance of seeking help when needed.

• His personal mantra revolves around taking small, practical steps to move forward, emphasizing the courage to tackle necessary tasks.

• He reflects on the joy of parenthood, the profound impact of entering and growing within a large company, and the invaluable opportunities to learn and adapt in diverse environments.

• The speaker candidly addresses the fear of not being able to accomplish all that he desires, particularly in participating in and contributing to impactful energy transformations addressing climate change.

• He acknowledges the need to embrace failure, particularly in the context of being open to innovative ideas and encouraging a culture of open discussion about failures within an organization.

• The speaker concludes by advising aspiring leaders to embrace curiosity, maintain a learning mindset, and adapt quickly to welcome diverse perspectives and drive innovation.

Conclusion

Carlo Bozzoli’s leadership at ENI has paved the way for a remarkable transformation, positioning the company as a pioneer in the software-driven approach within the energy industry. The journey of cloud migration, organizational shifts, and talent acquisition reflects a remarkable vision for sustainable progress and technological advancement.

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