Vassallo Group: a digital transformation built on trust

When Malta-based construction and property enterprise Vassallo Group embarked on a company-wide digital transformation, it looked to CIO Carlo Aquilina to build the entire infrastructure, operations and innovations...

When Malta-based construction and property enterprise Vassallo Group embarked on a company-wide digital transformation, it looked to CIO Carlo Aquilina to build the entire infrastructure, operations and innovations at the group…

Walk through the streets of the beautiful island of Malta and you will not be able to escape the work of the Vassallo Group. Property, hospitality, education and healthcare, the Maltese construction and property company completely reshaped Malta following the devastation caused by the Second World War. Indeed, Vassallo Group embarked on a mission to ‘rebuild the nation’ to its former glory and beyond.

Building on its strengths, the Group carries a legacy that is over 70 years old, and over the years has diversified its operations that have brought about expansion and investment. Today, Vassallo Group, stands at the forefront of several different sectors in the local market that include property and construction, furniture and interiors, elderly and disability care, catering, hospitality, architecture and education. The Vassallo Group is a large, complex enterprise and represents a unique challenge to its IT function, which provides technological solutions and support to all of the companies and their users.

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Carlo Aquilina was approached to take on the role of CIO at Vassallo in 2015, having spent a while building up an IT team at a manufacturing enterprise. “When I started in manufacturing, IT needed lots of work. We started from scratch. We built up the whole IT department and the whole team. When Vassallo approached me, they offered me that challenge again as they really lacked IT. It was a real challenge, but I built my team and we started on what needed to be done.”

Vassallo Group previously had a shareholding in an IT company and this sister company was providing IT, but the level of support was not sufficient for their local clients, thus Aquilina was asked to build the IT function that would serve the 1,900-plus employees and its extensive client base. “When I joined, I was tasked with the project: to start from scratch. I gave the board of directors a number of options. Should we go on premise, should we go with another hosting company, should we go hybrid, should we go cloud? The main ambition was very simple and I was given six months to come up with a solution where we gave our clients, our clients, meaning our users basically, a brand new environment with zero downtime. It was all firefighting in that first year.”

Vassallo went 100% cloud with Microsoft Azure, which Aquilina believed to be the best short-term, and long-term solution. “We’re a Maltese company. We’re not an IT focused company. IT is here to provide service to the business. Our business is not IT. We’re not a gaming company. All of our products are Microsoft, and so it was an obvious choice to move to Azure.” Vassallo agreed to go 100% to the cloud, having drawn a blank against the large capital expenditure associated with on-premise. “With cloud, you don’t invest in anything and everything is top of the range. Of course, it also helps to be paying operational costs and not capital costs. That was the way forward and then they (the board) embraced it. There was a number of partners who approached us to do this, to help us with this migration. I chose CyberSift, which was a start-up, actually.” An advantage to working with a start-up is that they’re not encumbered by a large kind backend and can move audaciously and quickly and this was certainly an appeal to Aquilina and his team. “I knew one of the technicians; a brilliant engineer and that helped. Plus, the price we were given was also from a start-up perspective.”

Vassallo Group. A Maltese institution

CyberSift viewed the chance to work with Vassallo with similar relish and the then start-up provided a specific engineer to be onsite with the IT team at Vassallo for the full duration of the migration. “Whatever I was asking, I was getting,” Aquilina explains. “‘Okay, we’ll do it for you, but you’ll have to promote us, after.’ Now I’m promoting them. So, we had engineers working for us and I didn’t need to grow my team. In fact, we’re a very small team.”

The key thing Aquilina and his team built in that crucial first year was ‘trust’. “I had the trust of the board of directors because every time they asked me something, I satisfied their request. So, there was trust. At the end of the day, it’s a family-owned company. Trust is very important.”

Aquilina and his team were given six months to deliver the project and took 2-3 three months to design and implement the infrastructure. The following three months, they contacted suppliers, before moving the software. “If it’s on premise or on cloud, there was remote access. It was teamwork, everyone pulling the same rope. Whenever one of the suppliers told us, ‘Listen, we’re not available this week. Let’s do it next week. We’ll slot in someone else. We’ll set meetings. We’ll explain what we are doing.’ All they needed to know is that we were moving from server A to server B. They did it for us because it was their software, their app, their solution.”

With any large-scale technological transformation there are challenges although Vassallo seemed to evade many of the pitfalls through great organisation. “I don’t think we had actually the biggest challenges because it was all planned out. We used to meet every day with the engineer who used to work for us and my team. It was a case of ‘What happened yesterday, what happened today, what is going to happen tomorrow and why? Are we on track? Yes. If not, why? What can we do?’ We worked late at night so that we could achieve it. It was all based on trust and teamwork. It was a case of open-heart surgery because the business wanted to work. The business kept on working even though we were doing open-heart surgery. We had that support from everyone. Everyone understood that this needed to be done. We had support from everyone, from all the partners, from Microsoft, everyone.”

Even though digital transformation involves technical infrastructure, software, servers and cloud, people are still integral to a successful outcome. “Yes, they are extremely important,” Aquilina explains. “There are the users, the customers and the IT team. We are a very small team and that really helped, because a huge team would require lots more organisation and more hand holding. It was me who was both sponsoring and managing the project. I had the lead engineer who was doing the actual work, remotely. They had an assistant administrator who was assisting. People are so important.”

Vassallo Group holds an annual internal awards and in 2016, the IT department was awarded ‘Best Customer Focused Department’ even though it had been, in Aquilina’s terms, firefighting. We were there constantly, anytime, any day of the week. The team and I were presented with this trophy, which proved my theory that the company had move to something much more stable.”

Now Vassallo Group is reaping the benefits of this transformation. “IT-wise, we are working on a business intelligence project. Now we have the infrastructure ready and a solid base or foundation, I want to give something back to the business. We implemented an ERP solution, which Finance, Logistics and Operations are using. I don’t want the directors to go into board meetings with huge amount of papers. I want them to go in with just a laptop. The data is live. We’ve already done that for one of the companies and it’s working. You can connect to the TV to project live data. That is business intelligence. We’re working on the other companies too. Now that they know what they can get, everybody’s bombarding us with requests. Of course, we’re taking our time and that is ongoing.”

From BI, Aquilina wants to harness the power of AI in board meetings. “I want to give them the facility to project live data, but I also want to give them the facility to change the data accordingly. They will see the results with AI.” Recruitment could be a big beneficiary of these initiatives too. “What if we employ 100 people? AI will work out the costs, work out the benefits of employing that many people. Then you can take an educated decision. ‘Should we employ 100 or 200? Let’s put in 200 more employees. What’s the cost?’ AI will work out the costs as well as the benefits. That’s all in progress. However, these are very sensitive tools that we need to use and if the tool gives you the wrong information, then you will make the wrong decision. I explained this to the board and they gave me the time needed to do it properly. We have to be very meticulous. They understood and told me, ‘Whenever you’re comfortable, we can start using.’ The CIO has to have 100% trust from the board of directors, because if there’s no trust, they keep on asking, ‘But why and how?’ That is the way forward.”

Providing technological infrastructure, new software and cyber security for such a large company means that Aquilina’s hands are certainly full. “We support about 1,900 employees and 500 users. I can afford to have a relatively small team because we have a solid base, and a solid infrastructure. I have a wonderful team. I recruited everyone from outside the business. I didn’t find anyone here, so they all respect me. We’re all friends at the end of the day, although I am their manager. We talk about anything and I help when needed. So, there’s trust from them and the senior management, which I believe is extremely important. It’s a wonderful place to work.”

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