CYENS: A Technological Catalyst for Social Change in Cyprus

INSIDER: The CYENS Centre of Excellence started its operation in 2018 with just a small team. Today, four years down the road, what role does it play in strengthening Cypriot cultural and creative industries, as well as in stimulating research and innovation in general?

Olga Shvarova, CYENS CIO: CYENS, since its inception, has never been meant to be a very large organisation. As things stand, we are just under 110, including senior researchers and research assistants. We are approaching the size envisaged to take it to the full operational capacity, while we are still on the lookout for junior innovation and research members of the team, as well as for experienced software engineers. However, I would say that the core of the organisation has been set. All in all, about 80% of our team are researchers.

Research excellence is our absolute focus right now and it is very encouraging that our work is getting to be recognised by leading funding agencies and scientific conferences in our field. At the same time, as a centre of excellence, we do keep in mind operational and innovation excellence as well.

Since our inception in 2018, we redefined ourselves as a Research Technology Development and Innovation (RTDI) company, which includes not only research but also technology development and innovation. These aspects can make a significant impact on our ability to enable, implement and manage technological and cultural change in our entire industry, which is the ultimate goal of any centre of excellence.

Our researchers employ their formidable knowledge and talents to investigate what can be the next ‘big thing’, the discovery, the new solution—everything that we can term ‘the change.’ They are the ones to prove the feasibility of new approaches and to understand the implications of their use. For example, we have research groups that focus on the ethical implications of the broad use of Machine Learning / Artificial Intelligence (ML/AI) algorithms, on the algorithmic bias and algorithmic transparency, as well as research groups that advance ML/AI algorithms for computer vision, animation, educational games, and understanding the repercussions of climate change. We have researchers working on utilising the power of digitisation in public healthcare; one example is the CovPass Cyprus app, which is a digital EU COVID certificate adapted to Cyprus NHS and stored directly on the smartphone.

As an organisation positioned between research institutions and industry, we must keep in mind that the change is a process that must be managed, and someone needs to spearhead it in order to demonstrate the benefits to society and encourage adoption and integration. What we do—what all centres of excellence are intended to do—is to apply continuous improvement in a very purposeful way. We accumulate and share knowledge how to make processes more efficient. How can we make them sustainable? How can we speed up operations? How can we use technological change and digital progress to improve the status quo?

Our work with CYTA , Cyprus’s leading provider of integrated electronic communications and one of the driving forces behind digital transformation, is a prime example. We have developed two small software systems for the CYTA Call Centre, one for customer voice verification and the other for automated call quality assessment. Our technology employs a machine learning algorithm to identify the emotional state of the customer during the call and to notify CYTA personnel of any serious problems their customers are experiencing. We use automation to improve CYTA’s customer service and increase customer satisfaction while improving the effectiveness and sustainability of the call centre operations.

Another good example is our collaboration with the creative and cultural community of Cyprus. We have the only in-house creative studio in the country that is entirely dedicated to assisting the artistic community island-wide in embracing the potential of digital technologies.

We have worked with individual artists providing them with a residency and support in using all of our advanced equipment from the laser cutter to VR glasses, which effectively spring-boarded their careers. We have worked with the film industry to help them design and manufacture props for a new Netflix series (still in production). Through digitally controlled additive manufacturing and material extrusion, we are exploring new materials Cyprus has to offer. We are involved with the New Bauhaus initiative of the EU. It connects the European Green Deal to our daily lives and the spaces we inhabit and aims to bring forth a sustainable and inclusive future for all Europeans, which included collaborations with Ars Electronica , MAXXI Museo nazionale delle arti del XXI secolo , ZKM Karlsruhe, Center for Art and Media , and Onassis Stegi to name a few.

Thus, by driving continuous improvement in design and experience, style and sustainability, accessibility and affordability of services we have achieved not only research excellence but also functional and aesthetic excellence. We have advanced in deploying science diplomacy by developing projects that benefit all communities and encourage trust and cross-communal understanding. As the New European vision itself, CYENS is a creative and transdisciplinary organisation, a bridge between science and technology, art and culture in the very centre of the capital city, as well as a bridge between the two major communities of Nicosia built through cooperation and co-creation.

I am proud to say that we are living up to our name as a Centre of Excellence, but we also want to be functionally excellent at continuous improvement and we are here to share our knowledge. We have an innovation team that can mentor and train other organisations in developing their innovation function and in driving technological and cultural changes. Our experts can help others, whether they are individual entrepreneurs or research institutions, to focus on the right things, to develop the right processes and apply these processes in uniform ways. One of the functions of the Centre of Excellence—as well as one of the ways to make such organisations sustainable beyond their initial funding periods—is to consistently share knowledge. In the coming years, I intend to focus on continuing the good work of the Centre and assisting others in achieving the same level of operations and impact.

INSIDER: How can someone collaborate with you and what are your comparative advantages over the competition?

Olga Shvarova: We engage with all kinds of organisations. In particular, we collaborate with universities on European Commission (e.g., Horizon Europe) and Ίδρυμα Έρευνας και Καινοτομίας/Research and Innovation Foundation proposals, we provide contract research or innovative product development to companies and public organisations, and we assist ministries in meeting their needs for digital transformation. On the other end of the spectrum, we work with early-stage start-ups and aspiring entrepreneurs to help them thoroughly grasp the value proposition behind their idea, develop a service offer, find local partners, build prototypes, and test and validate their models. We invite anyone interested in visualisations, virtual reality technologies, 3D modelling, human factors and design, ML/AI models as a part of their business to contact CYENS Innovation, and anyone interested in scientific collaboration in these areas to contact CYENS Research. Our Research arm operates as a research centre and our innovation arm functions as a commercial service provider, so together we cover the whole spectrum of engagements.

In Cyprus, we do not really have any direct competition. Other Centres of Excellence have their own distinct strengths and focus on different areas and sectors. Apart from our areas of specialisation, our strongest points are, firstly, our diverse innovation expertise and thorough knowledge of innovation management, and, secondly, our extensive links with the artistic world of Cyprus and our contribution to creative and cultural industries supported by the local government. We collaborate with other stakeholders in the Cyprus innovation ecosystem, such as Cyprus Seeds , eunite Cyprus , and The Cyprus Institute , rather than compete with them.

Insider: Who are the most important customers of the Centre today?

Olga Shvarova: The Municipality of Nicosia is our most important customer and most valued partner. We are developing a digital twin component of the Smart City initiative that will feature an interactive 3D visualisation model of the city as well as a foundation data layer for the city data storage repository and the integration middleware. This middleware will further connect the digital twin’s operation system to distributed applications like parking apps, databases, and predictive modelling tools for urban infrastructure management and planning. When completed, the digital twin will be used by the Municipality to improve the quality of life in Nicosia and will be scalable to other cities in Cyprus.

CYTA is another important client for us. We are delighted to be able to assist one of Cyprus’s most inventive public enterprises in their attempts to capitalise on digital change and new tools that emerge in the telecom sector and associated public service areas. We are expanding our collaboration with CYTA this year and intend to continue doing so for as long as both organisations are in business.

We have successfully collaborated with several museums, the healthcare and social services sector, and the Deputy Ministry of Culture, and we are getting increasingly involved with the public sector in general. We are in discussions with the Deputy Ministry of Innovation and the Ministry of Transport about a major project that, if successful, has the potential to transform public examinations.

I’d also want to highlight our growing involvement in the shipping industry. Large international shipping companies are increasingly aware of the transformative changes brought about by digitalisation, particularly when applied to logistic chains and fleet management, and we are actively exploring how we can contribute to the optimisation and sustainability of this critical sector. Digitalisation and innovation management are universal and sector-agnostic. If you are interested in the continuous improvement that digitalisation delivers, it makes no difference what industry your company is in; we have someone on our teams that can help you reach the results you want.

INSIDER: What are the Centre's initiatives in the sphere of innovation?

Olga Shvarova: When I took over as Chief Innovation Officer last year, the Centre’s innovation output was quite low, consisting largely of hackathons and student competitions. I quickly realised that unleashing the full potential of a Centre of Excellence with such a diverse offering as ours would necessitate capability and capacity, as well as specific types of skills and that developing these requires both organisational will and leadership focus, as well as a strong vision for the innovation process itself.

The first thing I did was to ensure that the Innovation Department had a really good team, a clear strategic vision, and a roadmap. I began by focusing on our purpose as a change-driving organisation and the development of the processes necessary to fulfil our innovation functions: technology transfer, entrepreneurship community management (particularly business acceleration and incubation), service contracts for the identification and development of innovative solutions, industrial partnerships, prototyping and product design, and commercialisation of research results. Now, we can do all of these things internally, assisting all of our researchers, and externally, assisting our partner institutions and other organisations or community members, effectively providing innovation as a service. For innovation management well established processes are critical; without them, there will be no systemic change, simply an accidental and transitory, non-replicable improvement. As Edward Deming famously stated, ‘Quality comes not from inspection but from the improvement of production process… If you cannot describe what you are doing as a process, you don’t know what you are doing.’

I expected a modest take-up, but the demand for what we offer has well exceeded our early expectations. The time has come for innovation, and Cyprus is ready for it, yet not all sectors recognise that some things must be done differently in order to flourish. However, I believe that the future is bright because the more we do, the more recognition we receive, the more companies and entrepreneurs we assist on their journey, the more organisations will recognise the necessity and value of what we do. Only now, when we are ready, can we focus our attention on marketing content and visibility.

INSIDER: Is Cyprus compared favourably to other EU countries in terms of innovation and absorption of European funds?

Olga Shvarova: In this context, I do not like the word ‘absorption.’ The funds should not be ‘absorbed’, but used to generate tangible, measurable impact. Cyprus’s research output is strong, and it punches above its weight in science, receiving European research funding for research, ICT services, and mobile app development. However, it continues to rank poorly in the number of science and engineering graduates, high-tech imports, labour productivity growth, and the availability of public and private equity investment in R&D. When compared to other high- income economies around the world, this results in poor business sophistication, low market sophistication, and a lack of human capital.

Innovative products, on the other hand, can be absorbed, that is, employed in industry or the public sector. Cyprus’s public sector absorbs the most innovation; nonetheless, according to EU statistics, a shift in attitude is desperately needed here. According to a recent EU analysis, Cyprus ranks 25th in Europe with only 4.3% of public procurement committed to procuring innovative solutions. What we see is poor performance, continuously falling short of the EU average of 9.3% and falling short of the anticipated 17% needed to enable full-speed modernisation of the Cypriot public sector.

In terms of transformational innovation, the share of investment in adoption (the funds spent on purchasing and integrating digital technology) in Cyprus is 29%, significantly lower than the European average of 84%. Adoption of ‘new to market’ solutions is exceedingly low, only 1%! Furthermore, the proportion of money spent on implementing ‘significantly improved’ solutions is also low (28%). At present, Cyprus relies on incremental upgrades to current solutions to a considerably greater level (71%) than the rest of Europe (16%).

The fact that digital technologies are transformative and critical enablers with the greatest influence on public sector modernisation, offering both quality and efficiency improvements across all domains of public sector operation has yet to be widely accepted. However, there are exceptions: healthcare and social services are the only sectors in which Cyprus ranks at the top of EU benchmarks. In general, nevertheless, Cyprus underinvests in the adoption of innovative digital technologies. If we can change this, we will change the entire country. And we, at CYENS Centre of Excellence, possess the tools, knowledge, processes, and technology to lead this change.

This interview was first published in the INSIDER by Phileleftheros Media Group on 31st July 2022 (in Greek)