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Quality results through supply chain disruption
Getting Asia online
An international data Journey
Jorge Gonzalez on how a new procurement strategy has transformed supply chain operations
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FOREWORD
W
Asian companies and consumers alike go digital in droves.
Safilo Group, which manages everything from the design and creation to the supply and distribution of eyewear, produces products for all sorts of brands including Bobbi Brown and Marc Jacobs.
Additionally, IDEX CEO Stan Swearingen argues that biometric fingerprint technology will be central to cashless payments within a matter of years – IDEX has not only partnered with US-based Mastercard, but also with Chinese companies Feitian and Jinco.
elcome to October’s Asia Pacific edition of Business Chief, bringing you the latest news and insight throughout the region.
Catherine Sturman caught up with Jorge Gonzalez, the company’s Director of Sourcing APAC, for our October cover feature, who was keen to explain why the end-to-end service Safilo provides its partners is essential for success. Elsewhere, Olivia Minnock speaks to Falk Weinreich, Senior Vice President at Colt Data Centre Services regarding the multinational company’s expansion across Asia and how it provides essential infrastructure as
For our October City Focus, we’ve zoned in on the thriving city of Perth, and we’ve also brought you a list of Australia’s 10 most significant exports. Don’t forget to check out our company profiles on SCT Group, Jabil, Coal Services Pty Ltd, BAI Communications, Brightstar Corp, Aditya Birla Group and Metro South Health. Enjoy the issue! Olivia Minnock. Olivia Minnock@bizclikmedia.com
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CONTENTS
Safilo Group
EYEING LONG-TERM GROWTH ACROSS THE SUPPLY CHAIN
12
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32 Getting Asia online: an international data journey OCTOBER 2018
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City Focus
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PERTH 09
66
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112
CONTENTS
86
Coal Services Pty Limited
SCT Group
10
98
OCTOBER 2018
Jabil
126
Masan Resources
146 BAI Communications
164 BrightStar
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176 Metro South Health w w w.busi ne ssc hief. com
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DELIVERING QUALITY RESULTS THROUGH SUPPLY CHAIN DISRUPTION WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
CHARLOT TE CL ARK E
OCTOBER 2018
S U P P LY C H A I N
13
w w w. b u s i n e s s c h i e f. c o m
SAFILO GROUP
Nearing the end of its procurement strategy 2020, Director for Sourcing for Asia and APAC, Jorge Gonzalez, discusses how the business continues to go from strength to strength
A
ppealing to all ages and demographics, the global eyewear market is undergoing considerable growth. Set to exceed $165bn by 2026,
optical companies and those specialising in eyewear will 14
need to transform traditional business models behind the scenes in order to cater towards increased demands. From the purchase of designer sunglasses, to the improvement of everyday vision, 99% of all frames worldwide are produced in Italy, China and wider Asia, creating significant opportunities for eyewear creator, Safilo Group. Famed for its extraordinary designs and propriety brands, such as Carrera and Polaroid, as well as its licensed brands, BOSS, Tommy Hilfiger, Kate Spade, Marc Jacobs and more, the group has become the second largest eyewear company in the world. Safilo is a frontrunner in the global distribution of premium sunglasses, optical frames and sports eyewear, bringing the latest design and manufacturing capabilities. Housing a number of its factories in Italy, its sourcing activities are mainly undertaken in China and Japan, OCTOBER 2018
S U P P LY C H A I N
15
“ We source a large share of what we sell with partner companies, instead of with our own direct manufacturing. The sourcing team is extremely well recognised, as it is a key source of innovation” — Jorge Gonzalez, Director of Sourcing in Asia and APAC
w w w. b u s i n e s s c h i e f. c o m
Imagination enriched by precision Who are HuaQiang? Huaqiang is a precision metal component solution provider to mainly optical, but also watch, luxury accessory, medical and electronic industries. Through 35 years of experiences and constant reinvestments in production, HuaQiang is able to use precision to help its customers realise its widest imaginations and design. We have offices in Shenzhen, Wenzhou and Veneto, Italy, whilst our HQ and production plants are in Yuhuan, China. How has the business changed over the years? Through almost 35 years of history, we started off by suppling metal component to the lowest segments of the eyewear manufacturing business. Until 15 years ago, when most of our domestic competitors started to invest in rapid booming and profitable real estate market, HuaQiang decided take bold steps to invest in a total production upgrade by acquiring two fully automated production lines from Japan.
Contact us on Phone:+86 576 8990 9199 Email: marketing@hqopt.com
We have been able to gain the trust of world’s two leading eyewear manufactures including Safilo, Luxottica, De Rigo and Essilor and have become one of the top four eyewear metal components suppliers in the world.
Basically, we help our customers to create added value by putting ourselves into our customer’s shoes.
Please outline HuaQiang’s business model
Whilst being an industrial leader in self-developed machinery in China, we also maintain industry’s highest level of investment in our Human Resources. One of the most effective ways is to acquire talented people from other industry leaders. Some of our brightest colleagues were recruited from Volkswagen and Bosch.
Our business models can be seen as two folds. For most of our customers, we ship our components directly to their plants, usually in Italy, China, Japan and Bazile. We are their first-tier supplier. This is referred as “Direct sales” in HQ and accounts 70% of our annual sales. Other customers that are brand or retail owners that do not have internal manufacturing capabilities, we supply to their frame producers. This accounts 30% of our annual sales. What technologies does the company utilise across its operations? We have been investing in new technologies, especially in 5-axis CNC machines. We also have a machinery workshop to develop and build all our machines for standard products, as well as utilising pressing, computer numerical control (CNC), metal injection moulding (MIM), laser cutting and more. How do you ensure strong relationships with customers and suppliers? We have selected a number of qualified candidates with the potential and willingness to grow. We have shared market information and production knowhow, and internalised the fundamentals, such as moulding and surface treatments so supplier risks are mitigated. Safilo, for example has an extensive brand portfolio, and is an industrial leader in quality and design. The business always challenges us to realise the wildest design ideas. The transformation of centralisation in procurement in recent years has also allowed HuaQiang not only to tap into business with Safilo, but also with its OEM suppliers. Safilo has been our most educative customer, which has allowed us not only to develop in terms of management, but has also opened us to further market opportunities.
What about the training and development of workers?
Our technical team routinely attend machinery and moulding exhibitions worldwide, and we also have established partnerships with a training firms for management training across all management levels. A personal development fund is also announced to all employees on yearly basis. What sets HuaQiang apart from the competition? The most crucial one is our dedication in both catalogue and custom-made products. In catalogue business, some are self-developed, but others can be standardised. By continuous investment in automation, R&D, and production management for catalogue products, we are more efficient than ever. When developing a new metal frame, a customer need to decide to which extend they will internalise the product. Our commitment in both product types enables us to be the ultimate metal solution provider to eyewear industry. We shipped 40mn pairs of catalogue products and 15mn pairs of custom made products in 2017, where we produce approximately 90,000 pairs per day. As a company that has deep roots in this industry for 35 years, we were able to capture new customers whilst maintaining good service level to existing ones which makes the first half of 2018 the best one we ever had.
How does HuaQiang help its customer such as Safilo to deliver special eyewear? Each time when we receive a drawing or a new idea, instead of going directly into product development, it is our instinct to look deep and try to understand the logic behind this design and all possible solutions to accomplish it. If such design is intent to be perfect in moving mechanism, we will suggest the most precise process to make sure the assembled product runs smooth like silk. If such design is intent to be perfect in aesthetics, we will introduce the right surface treatments to make it shine.
Dunno Huang Director of foreign & indirect sales, HuaQiang Optical
SAFILO GROUP
“ It is a matter of looking at the performance of that factory in somewhere like China and how it will impact our customers in countries such as Spain or Brazil, highlighting the relationship between market and supply” — Jorge Gonzalez, Director of Sourcing in Asia and APAC
18
where its frames are distributed worldwide. “From a supply chain perspective, we don’t have a strong segmentation by region, but more on a functional basis. However, sourcing is much more Asia focused, which is why we have a strong team in Hong Kong,” explains Jorge Gonzalez, Director of Sourcing in Asia and APAC. “We source a large share of what we sell with partner companies, instead of with our own direct manufacturing. The sourcing team is extremely well recognized, as it is a key source of innovation.
EXCEPTIONAL COLLABORATION Working across a number of supply chain functions for close to 20 years, Gonzalez OCTOBER 2018
S U P P LY C H A I N
joined the business in 2016 taking over from Andrea Grassini who then became Global Sourcing Director. Grassini has been instrumental within the group’s procurement and supply chain transformation, and has taken the business’ procurement and supply chain capabilities to the next level. “Previously, the interface between design and sourcing was happening much more downstream in the process. Now, the way we work opens up more opportunities,” he explains. “When you have your own factories, it’s much more difficult to keep in touch with the market, so we keep in touch through our network of suppliers. “Instead of having one location, we have over 30. We don’t manage the production directly, but we operate like a factory, with production managers, scheduling and planning. Instead of production orders we use purchase orders, but it is similar. It’s part of our success.” Working alongside designers in Italy, New York and China, Gonzalez and his team work in sync with both designers and suppliers, passing on innovative design concepts which can be mass produced, placing particular emphasis on building mutually positive supplier relationships in the process. “We are like a revolving door, with suppliers on one hand and designers on the other, in w w w. b u s i n e s s c h i e f. c o m
19
visotticacomotec.com
Continuous improvement. Founded in 2003, Jin Yu Plastic Products Co Ltd is a dynamic and leading manufacturer of Cellulose Acetate Sheets in China with offices in Asia and Europe.
www.jinyuplastic.com Jin Yu is on Facebook Instagram Wechat
S U P P LY C H A I N
“ Our differentiator is that we go to their factories and seek to add value by highlighting opportunities for improvement in every factory — Jorge Gonzalez, Director of Sourcing in Asia and APAC
lean and six sigma methodologies was a key turning point.”
BUILDING TEAM RESILIENCE As new materials, textures, colours and finishes, as well as types of lenses, continue to flood the market, Gonzalez and his team have remained adaptable against ongoing market volatility. With over a thousand new products each year, each member of the team plays a key role: Product develop-
order to produce prototypes, concepts
ment and engineering teams manage
and drawings. There is also an engineer-
all 1000 models from prototyping to
ing team, each housing over 15 years’
mass production readiness; the quality
experience, which is why our sourcing
manager ensures that all are manufac-
is world-class,” adds Gonzalez.
tured to high standards, whilst the pro-
“Appointing a number of individuals
duction manager remains responsible
with a background in manufacturing
for the procurement-to-pay process
has also helped our suppliers, as many
and delivery performance.
organisations won’t have the manpower
Additionally, one team is strategically
or the expertise to go deep into their
working with suppliers and gaining a
operations. They just want to negotiate
greater understanding of costings, the
the price and then leave things be. Our
bill of materials, and overhead percent-
differentiator is that we go to their
ages. Its sourcing house has illustrated
factories and seek to add value by
how a healthy manufacturing company
highlighting opportunities for improve-
should operate by creating a dedicated
ment in every factory,” he continues.
area for its purchasing operations and
“We have the background and the expertise. Manufacturing together with
giving its sourcing house greater autonomy. w w w. b u s i n e s s c h i e f. c o m
21
SAFILO GROUP
“I see myself as an enabler
examples to the table. We also
and facilitator. Each team is
brought the team to the facto-
given targets where they make
ries, to the suppliers, showing
the required choices and are
real examples of how we can
held accountable. They decide
be even better.
which projects they will run with
“It takes a while to embed
and the activities they believe
this kind of culture of fighting
the business should be under-
for every single opportunity.
taking,” explains Gonzalez.
The automotive industry had
The sourcing house is routinely encouraged to embrace
to do it in the ‘80s and we are having to do it now.”
new ways of working, particusign new styles to suppliers and
PROCUREMENT JOURNEY
balance capacity, as it contin-
Presently undergoing its
ues to transform from regional,
six-year accelerated procure-
isolated, “do-it-all” units, to
ment strategy, which is set to
global, category-focused pro-
complete in 2020, Safilo will
curement clusters to address
seek to balance its production
global spend by category while
and sourcing activities, in order
driving accountability for qual-
to deliver outstanding results
ity and delivery.
in five key areas: availability,
larly in areas such as how to as22
“The question is ‘why bother to do better if we are already
delivery, cost, partnerships and innovation.
doing very well?’ Trying to moti-
“With net inflation, we are
vate workers in this way was an
trying to accomplish around
internal challenge which we had
low single digits sourcing effi-
to overcome,” notes Gonzalez.
ciency year on year, which with
“We looked at other industries in order to bring some OCTOBER 2018
inflation is a high single or even double-digit improvement es-
S U P P LY C H A I N
23
SAFILO GROUP
24
“We have a manufacturing mindset and experience with lean and six sigma methodology. We do not just negotiate prices, but go deep into our suppliers’ production processes” — Jorge Gonzalez, Director of Sourcing in Asia and APAC pecially in countries like China,” says
product development, the purchase-
Gonzalez.
to-pay process and supplier and
“That is the driver towards all other
relationship management, Safilo looks
choices that are situated in quality and
at supplier production and scheduling,
lead time in production. All of this is
collaborating with suppliers across the
geared to removing defects and waste,
whole manufacturing process.
which will help us achieve purchasing ef-
“Having a manufacturing mindset
ficiency, not by reducing the profit of our
and experience with lean and six sigma
partners but by improving the processes.”
methodology. We do not just negotiate
Focusing on three main engines: OCTOBER 2018
prices, but go deep into our suppliers’
S U P P LY C H A I N
25
production processes,” he says. “We look at their situation, their overheads, undertake a profit and
they are not able or willing to work to continuously improve quality and process and remove waste cost.”
loss (P&L) analysis and then give them a hint of where to look for opportunities.
SUPPLIER GROWTH
Partners are defined in addition to by
With increased pressures as a result
performance, by the level of collaboration
of the exchange rate with the dollar, as
we obtain during these conversations. At
well as Chinese inflation, the company’s
the end by natural selection suppliers will
relationship with its suppliers has been
end up being dropped and renewed if
completely disrupted. w w w. b u s i n e s s c h i e f. c o m
SAFILO GROUP
“In the past, cost was not so important. Every supplier had the notion that if they do a reasonable job then they will receive a certain amount of business the following year. We have therefore had to bring suppliers back to five KPI areas - compliance, social responsibility, quality, delivery performance, cost, and a ‘softer’ area of whether they are easy to do business with,” explains Gonzalez. “We have had to become very disciplined in making sure that new business and the growth of the supplier is 100% linked to this.” Introducing best in class management 26
€1.04bn Approximate revenue
1934 Year founded
practices, Safilo works with suppliers to create a yearly joint business plan (JBP), undertaking quarterly reviews, as well as visiting suppliers at their own locations to reach as many layers as possible. “I personally take the time to meet with the people, with my team and go all the way across the shop floor to understand the issues, work with them and do some problem solving together. “It is a matter of looking at the performance of that factory in somewhere like China and how it will impact our customers in countries such as Spain or Brazil, highlighting the relationship between market and supply.” By running a number of quality assurance programmes, the sourcing house has also OCTOBER 2018
8000+ Approximate number of employees
S U P P LY C H A I N
undertaken a range of projects with suppliers to tackle long-standing issues. “Each year, KPIs are expanded further to provide new challenges for suppliers, whether it is through capacity or lead times. For example, last year, our KPI in delivery performance is at 95-97%,” notes Gonzalez. “We have three seasonal collections per year - in January, April and August - and each year we have removed one week off the lead time. Since 2016, we have cut off three weeks in terms of lead time. However, we need to maintain the same quality and service level, as well as reduce costs. “We need to be faster and remove waste,” he adds. “We cannot do things the same way that we were doing before, so that forces us internally as well as our suppliers to review current processes, not just production but end to end. For example, lengthy and manual interfaces meant that a purchase order would move from office to the supplier in days, now it takes hours,” he continues. Soon to renew its 2020 vision following on from the appointment of its new CEO this year, Safilo will aim to further transform the business to uphold its 100% track record on delivery. Adopting lean deployment programmes to reduce lead times and shrink costs with w w w. b u s i n e s s c h i e f. c o m
27
SAFILO GROUP
28
OCTOBER 2018
S U P P LY C H A I N
FACTS
• The global eyewear market is set to exceed $165bn by 2026 • Safilo Group is the second largest eyewear company in the world. • Safilo houses a number of its factories in Italy, whilst its sourcing activities are mainly undertaken in China and Japan • Strategically working with suppliers and gain a greater understanding of costings, the bill of materials and overhead percentages, its sourcing house illustrates how a healthy manufacturing company should operate • The sourcing house is routinely encouraged to embrace new ways of working, particularly in areas such as how to assign new styles to suppliers and balance capacity • 99% of all frames worldwide are produced in Italy, China and wider Asia • Focusing on three main engines: product development, the purchase to pay process and supplier and relationship management, Safilo collaborates with suppliers across the whole manufacturing process • Safilo works with suppliers to create a yearly joint business plan (JBP), undertaking quarterly reviews, as well as visiting suppliers at their own locations • Soon to renew its 2020 vision following on from the appointment of its new CEO this year, Safilo will aim to further transform the business by looking for new opportunities
w w w. b u s i n e s s c h i e f. c o m
29
SAFILO GROUP
30
OCTOBER 2018
S U P P LY C H A I N
year-on-year positive procurement efficiencies despite various challenges, Safilo’s unique team, deep knowledge of products and exceptional focus on quality has fully transformed the business. Implementing data-driven, six sigma problem-solving solutions to tackle quality issues, its dedicated team has delivered the best quality, delivery and cost from the start to support its manufacturing partners, as well as putting forth best-in-the-business engineers and materials experts. “With the ability to automate produc-
“ Since 2016, we have cut off three weeks in terms of lead time. However, we need to maintain the same quality and service level, as well as reduce costs”
— Jorge Gonzalez, Director of Sourcing in Asia and APAC
tion processes, we are open to new supply markets – this is one area of
ment underway on how to remove any
focus for us. Looking at Asia, we want
solvent based elements, so cleaner
to become less China dependent and
processes and the introduction of
be more diversified on the supply
increased bio-materials will definitely
market,” notes Gonzalez.
be a trend for the future,” he concludes.
The business is also set on embed-
“In sourcing, we will be able to
ding greener technologies and pro-
change much faster than any other
cesses to fully disrupt the traditional
internal factory because we are able
eyewear industry.
to leverage our suppliers’ world class
“Some of the materials that we use
expertise.”
are the same as 50 years ago, like cellulose acetate. Now there are new technologies for cellulose acetate, such as new formulations. There is investw w w. b u s i n e s s c h i e f. c o m
31
LEADERSHIP
Getting Asia online: an international data journey 32
Colt Data Centre Services offers carrier–neutral support for businesses wishing to operate internationally, and is growing quickly across Asia as companies and consumers alike make the shift to digital WRITTEN BY
OCTOBER 2018
OLIVIA MINNOCK
33
w w w. b u s i n e s s c h i e f. c o m
LEADERSHIP
T
he first question Falk Weinreich
we only have 300 people in the data
is often asked by press and staff
centre business. We have a better
alike is ‘why are you still here?’
structure and are more mature, but
– and with good reason. Currently Senior Vice President of carrier neutral data centre operator,
and fast and speedy in the market to make bold decisions.
Colt Data Centre Services, Weinreich
“In the past, Colt had never really
has been part of the wider Colt family
focused on the data centre business;
for over a decade. “The company in a
the first data centre came on the market
wider sense is a remarkable company
in 2000, but in those days, we focused
in my view,” he enthuses, harking back
more on managed services and hosting,
to its foundation over 15 years ago as
which today of course is very much
a family-financed enterprise.
driven by cloud businesses.”
A business driven by numbers and 34
we are still agile and small enough,
Three years ago Colt sold its
results but also loyalty, Colt has grown
managed services, leaving it with the
across Europe and is now making
legacy of its data centres but more time
waves in Asia, which is another reason
to concentrate on the business of the
Weinreich has chosen to stick around.
data centre itself. Now with a total of 24
“This is a great portfolio – there’s such
data centres across the globe, Colt
an international environment, as well
offers 24/7 services to businesses via
as a lot of changes and challenges.
its data centres including engineering,
The company also helps employees
security and colocation.
grow. If you’re eager to learn, it creates opportunities. That’s why I’m still here.”
It’s the opportunity to focus on one area (the real-estate side) that’s key for Weinreich. “When you only do this and
COLT DATA CENTRE SERVICES
aren’t worried about networks, you gain
Two years ago, Colt split its data centre
expertise,” he outlines. “We became
offering (Colt DCS) from its wider
successful month after month. We
business, with Weinreich opted to
hired good people, but educated our
join the new segment. “Now, we call
own staff as well. By now we’re even
ourselves a mature startup because
filling legacy sites that are 10-15 years
OCTOBER 2018
“We have local suppliers and local relationships in the market. We’re much more international than our competitors are” — Falk Weinreich, Senior Vice President
w w w. b u s i n e s s c h i e f. c o m
35
LEADERSHIP
old. We’ve upgraded them technology-
Mumbai, where we’re close to starting
wise and, with a good sales focus, we
a project,” says Weinreich.
keep selling and filling the sites.”
The Japanese market has been fertile in recent years, creating a demand
36
GETTING ASIA ONLINE
which Colt has taken full advantage of,
“Now, it’s really about growing in this
while also looking to expand into the
hyper-scaled market and building
southeast of the continent as more and
much larger sites.” Colt is concentrat-
more businesses in that region come
ing that growth across Europe and
online. “First of all, Japan was a bit slow
into the increasingly demanding Asian
and hasn’t seen the same growth as
market. Last October, Colt DCS
other regions, but that has changed and
opened its campus in Tokyo which is
supply is in constraint right now, so
already at capacity. “In Asia, the focus
demand is great and we’re happy to
is more about Japan: namely Tokyo
be in the position to deliver that,” says
and Osaka, but we’re now also looking
Weinreich. “Japan is still very under-
at Singapore and other markets like
served. In Tokyo, we have three data
OCTOBER 2018
centres and we’ll most likely start this
businesses operating in Japan, it’s easy
year to build another on the campus
to go to Colt, because we understand
we own. We’re also looking to expand
foreign buying behaviours.
into Osaka.” Colt DCS is committed to offering
“We have local suppliers and local relationships in the market. We’re much
the same quality of service from Berlin
more international than our competitors
to Tokyo. “We obviously have people
are,” Weinreich outlines. “The world is
on the ground in all these countries,
getting more global and lots of Ameri-
but we’re using one structure and one
can, Chinese or German companies
experience,” Weinreich emphasises.
are looking to operate in Japan. We are
However, ensuring this service is
often their provider of choice because
localised is essential for an internation-
we understand the culture better than
al client base. “We speak all sorts of
these huge companies.”
languages: in Tokyo, we have people
While the company doesn’t have
from Korea, China, Japan, US, UK,
assets in China – currently home to
Germany and France. For foreign
772mn internet users and counting – Colt DCS can also take advantage
“ If you don’t keep up with the demand of more security, people just won’t choose you” — Falk Weinreich, Senior Vice President
of expanding Chinese companies. “We take approaching companies from China, which is fast growing, and bring them to Europe and Japan.”
A SECURE, FLEXIBLE APPROACH A flexible approach is central for Colt DCS in more aspects than just geography. “There’s a lot within the data centre: companies might want a different rack, cage, cabling. They might want a storage room, toilets, a shower. We’re flexible where we can be, without compromising where w w w. b u s i n e s s c h i e f. c o m
37
LEADERSHIP
“ We’re flexible where we can be, without compromising where security can be impacted” — Falk Weinreich, Senior Vice President
38
security can be impacted.
With cybersecurity an increasing
“We’re one of the most flexible
concern for business and consumer
companies in the market right now,”
alike, refusal to compromise on this
says Weinreich. “We came late to the
issue is at the fore of Colt’s offering.
market, and there are a lot of compa-
Colt DCS doesn’t run network services
nies that already have their market
and firewalls, but has to make sure all
share and branding, but we needed
the data contained in its facilities is
to be different. Choices are every-
safe and secure.
where and there needs to be a reason
“From having procedures, monitor-
to choose Colt.” For the data centre
ing and checks in place, there are
company, this means following robust
always new security aspects which
and secure principles while also
we need to follow. Almost all our
listening to customers and taking
customers are audited by their own
their needs on board.
companies’ security teams, so we
OCTOBER 2018
39
need to facilitate those audits and be
about the challenges the business is set
audited ourselves on a regular basis.”
to face as it builds.
For its part, Colt DCS has a dedi-
“There are challenges: how you
cated team of experts which regularly
organise yourself, how you keep
looks at security measures and makes
growing. We’re adding data hall after
sure the data centres are up to date
data hall on an almost quarterly basis.
with all the latest certifications. For
That brings a challenge. How can we
Weinrich, this commitment is obvious:
keep building so fast? The whole
“If you don’t keep up with the demand
production line is stretched under
of more security, people just won’t
the demand and the success we
choose you.”
have in the market. That needs to
While Colt DCS seems to have handle
be adapted within the organisation,
on making the most of the growing Asian
to new partnerships, and in how we
market, Weinreich is under no illusions
operate and build.” w w w. b u s i n e s s c h i e f. c o m
Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter Click to read
w w w.bu si nessch ief.com
TECHNOLOGY
42
Transforming finance for a cashless future As society becomes cashless and emerging markets demand financial access, IDEX is poised to transform the way we pay. Business Chief spoke to CEO Stan Swearingen to find out how WRITTEN BY
OCTOBER 2018
OLIVIA MINNOCK
43
w w w. b u s i n e s s c h i e f. c o m
TECHNOLOGY
H
aving made his career at the fore of some of the most pervasive technology innov-
ations of this century, Stan Swearingen is
no stranger to working with market makers. From Bluetooth to WiFi to touchscreen technol-
ogy, Swearingen has witnessed the earliest stages of current technology mainstays. That’s why he decided to come out of retirement and put his weight behind one more innovation: biometric technology that facilitates payment verification with just a fingerprint. Notably, in addition to serving at mobile device management developer Amtel and semiconductor 44
revolutionary Rohinni, Swearingen was previously CTO at Synaptics, the company behind the touch technology which Apple brought into the mainstream with its MP3 players, mobile phones and tablets. Now Swearingen is back for what he describes as “one more career-defining role to create a new market”. “Part of that experience is seeing the point where you’re pushing something, an idea, and you meet resistance… even when we were developing WiFi people were saying ‘No, I don’t get it’ or ‘here are all the reasons why it won’t happen’,” Swearingen reminisces. “At the front end of an emerging market the supply chain forecast is very conservative, but once that inflexion point happens, it explodes and the volume goes through the roof.”
OCTOBER 2018
“ At the front end of an emerging market the supply chain forecast is very conservative, but once that inflexion point happens, it explodes and the volume goes through the roof” — Stan Swearingen, CEO, IDEX
45
w w w. b u s i n e s s c h i e f. c o m
TECHNOLOGY
46
This is what Swearingen strongly
global user base. For Swearingen,
believes is set to happen with biomet-
it’s not a question of when or if, but
ric technology in 2019. Soon, he argues,
how, biometrics will explode in the
PIN verification (and its now compara-
market. “What’s important is how you
tively archaic predecessor, swipe and
prepare yourself for that transition
sign) is set to become a thing of the
as a company,” he says.
past in favour of a fingerprint connect-
As with Synaptics and Apple, it takes
ed to payment cards, allowing the user
a technology developer coupled with
to verify payments at the point of sale
a market maker to bring about the
with just one touch.
Next Big Thing, and IDEX has found
He’s not alone: IDEX has partnered
a symbiotic partner in Mastercard.
with financial services giant Master-
“Mastercard is the market maker,” says
card, which is excited to roll out the
Swearingen. “We’ve been working with
new fingerprint technology across its
them on the total experience, not just
OCTOBER 2018
“ As society moves to a more cashless approach, reinventing the credit card with biometrics is a critical part of making that transition a reality” — Stan Swearingen, CEO, IDEX 47
technology – we are a solutions provider
print is unique to you and it’s not
partnered with a market maker.” When
something somebody’s going to guess
the CEO joined the company in 2016,
or look at over your shoulder. I think
IDEX had the perfect combination of
customers in general are even more
market maker, value proposition and
savvy regarding the dark web and
knowledge of systems and biometrics.
identity theft, and people just want to
With a plethora of fast and easy pay-
make sure their hard-earned money
ment options on the market, what is so
isn’t spirited away by somebody doing
special about the biometric element –
fraudulent acts.”
aside from the theatrical appeal of
In addition, IDEX has ensured
paying with a fingerprint? Security, of
biometric ID technology can be quickly
course, takes centre stage. “You get
deployed, with remote enrolment
a physical, unique connection with your
available for card users. “You get a card,
card,” Swearingen explains. “A finger-
you take your fingerprint and it creates w w w. b u s i n e s s c h i e f. c o m
TECHNOLOGY
48
OCTOBER 2018
a template which is stored in
users feel versus other methods,”
secure memory inside the card,”
he adds.
he explains. “There are multiple
While the end user is always
ways to do that. The first instance
top of mind, merchants will need
would be going into your branch
convincing that this new POS
and putting your finger into an
technology is necessary – but
optical reader, but IDEX and
Swearingen doesn’t think this
Mastercard saw that as an inhibitor
will be a problem. “Mastercard
to mass deployment, so we came
and the like are interested in
up with remote enrol, involving
frictionless transactions: easy
a simple plastic sleeve that is sent
and intuitive so the customer
in the post along with the card.”
isn’t worried about security or
When it comes to payment
anything that might cause them
methods, security goes hand-in-
to think ‘I was going to buy this
hand with convenience. “If you
item but maybe I won’t’ – obvi-
look at how someone grabs
ously the retailers want this to be
a credit card, ergonomically
frictionless as well. It’s a unified
it’s a natural movement,” says
goal. As society moves to a more
Swearingen. “They don’t have
cashless approach, reinventing
to learn something different. It’s
the credit card with biometrics is
so intuitive.” This more secure
a critical part of making that tran-
option is also set to reduce the
sition a reality.”
necessity for things like payment limits for contactless cards. “With fingerprint, this will go away. You don’t need a limit or to re-enter your PIN. We’ve done many pilots with Mastercard and the feedback has been overwhelmingly
— Stan Swearingen, CEO, IDEX
positive about how easy it is to use and how much more secure w w w. b u s i n e s s c h i e f. c o m
49
TECHNOLOGY
In addition, IDEX’s work will help to promote financial inclusion for those in underbanked areas. “There’s a lot of people who can’t bank today because they don’t have government ID or the things necessary to get an account – biometrics will help solve that problem as financial institutions will know the person they’re issuing the card to is a real person.” Looking to the future, Swearingen anticipates that rolling out the new technology will be similar to marketing previous concepts that seemed radical. 50
Developers like IDEX often take on more of a systems role. “You have to engineer the total solution, so we did a reference design. We did all the hard work: the hardware, software, everything so that card manufacturers could quickly come up to speed and sample products.” Already, IDEX has partnered with Taiwanese smart card solution provider JINCO and Chinese contactless card developer Feitian. “You’ll see more announcements imminently of different Tier-1 partnerships not just in China, but throughout the Asian supply chain. JINCO and Feitian have brought technical, manufacturing and channel OCTOBER 2018
“ A fingerprint is unique to you and it’s not something somebody’s going to guess or look at over your shoulder” — Stan Swearingen, CEO, IDEX
sales abilities,” says Swearingen, adding that JINCO’s access and insurance cards business and Feitian’s tokens business will help IDEX to develop across different verticals. IDEX has already made strides, especially in emerging markets where e-payment systems are leapfrogging the likes of the US, and to Swearingen this is evidence of the same take-off point he saw with the likes of Bluetooth. “We’re preparing for what we believe is this inflexion point where the demand is just going to skyrocket. We have to be prepared to support many customers and make sure we have all the tools, documentation and talent necessary,” says the CEO, who expects millions of biometric units to have been deployed by the end of 2019. Indeed, recent studies supported by IDEX outlined that 90% of customers would switch card issuer to one offering biometric technology if their incumbent did not. “The likes of Mastercard, Visa, American Express… biometrics is a vehicle for them all to take share from one another,” Swearingen concludes. “For IDEX, this coming year is all about scale and making sure our supply chain has all the technical support needed.” w w w. b u s i n e s s c h i e f. c o m
51
Emergin chain tra
16-18 Oct Amora H www.digitalsupplychainsummit.com.au BENEFITS OF ATTENDING www.digitalsupplychainsummit.com.au
Be part of Australia’s leading event focused on Industry 4.0 & the evolution of the digital supply chain
Hear real world industry case studies from leaders in FMCG, Retail, Food and Beverage, Manufacturing, Transport, Logistics, Shipping, Government, Healthcare, Energy & Utilities, Warehousing & Distribution
Participate in deep-dive roundtables moderated by experts covering blockchain, IoT, robotics, advanced analytics, drones and security
Join a community of CxOs, supply chain and data leaders and innovators at the forefront of the digital supply chain
Meet with industry leading solution providers spearheading innovation in digital supply chain research and product development
KEY THEMES BEING COVERED INCLUDE:
Managing supply chain innovation and change in disruptive times
Leveraging technology to move past the linear supply chain
Making supply chains responsive, adaptive and customer centric
Beyond POC: Integrating emerging technologies within your supply chain
Using blockchain to drive supply chain transparency, trust and innovation
Internet of Things inventory & warehouse management
Using analytics-driven cognitive capabilities to increase cost efficiency and performance
Achieving end-to-end visibility and eliminating supply chain blind spots
Assessing the impact of digital platforms on procurement
High performance fulfilment: The only way to meet customer demand
How AR and VR are revolutionising the supply chain
Exhibitor:
Endorsing bodies:
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info@que
ng technologies and digital innovation for supply ansformation
tober 2018 Hotel Riverwalk | Melbourne | Australia
KEY SPEAKERS: John Baird Chief Executive Officer UCOT (Ultimo Digital Technologies)
Keya Chaturvedi Trend Research Manager DHL Asia Pacific Innovation Center
Cameron Hall Head of Strategy and Innovation Port of Brisbane
Jeremy Goodman Director Supply Chain, Carnival
Ashok Sudhakaran Head of Procurement The Warehouse Group (NZ)
Simon Rowe Supply Chain Transformation Leader Kimberly Clark Australia
Marcel Sieira Head of Customer Engagement GS1 Australia
Rosita Van Vuuren Merchandise Operations Manager Best and Less
Pieter Vandevelde Chief Operating Officer TBSx3
Kevin Worrell Project Director Dulux
Business Chief and Digital Supply Chain subscribers qualify for 10% off the registration fee, quote VIP code ‘BC_10’
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CITY FOCUS
PER City Focus
54
Business Chief finds out how Perth is flourishing through a combination of esteemed educational establishments and big business WRITTEN BY
OCTOBER 2018
SEAN GALEA-PACE
RTH w w w. b u s i n e s s c h i e f. c o m
55
CITY FOCUS | PERTH
56
A
s one of the most isolated cities in the world, Perth’s nearest Australian city is over 2,200kms away and is closer to Singapore than the capital of its own country, Canberra. With an estimated population of approximately 2.14mn people, Perth is Australia’s fourth largest city in terms of population size and it has great international links, including its own airport with direct flights connecting it with London. It was originally named after the city of Perth in Scotland by Captain James Stirling in 1829 and is notable
for being home to the largest city park in the world, OCTOBER 2018
‘Perth is considered Australia’s “Education City” due to its focus on providing top-class learning institutions’
57
King’s Park, at 988 acres beating
requires children of compulsory school
New York City’s iconic Central Park
age to attend school between the ages
in the process.
of 6 and 17 years old. Students come from all over Aus-
AN EDUCATION HUB
tralia and the wider world to study in
Perth is considered Australia’s “Educa-
Perth. There are five universities in the
tion City” due to its focus on providing
city. These are: Curtin University, Edith
top-class learning institutions.
Cowan University, Murdoch University,
Schooling in Perth is governed by the School Education Act 1999 and
University of Notre Dame and the University of Western Australia. w w w. b u s i n e s s c h i e f. c o m
CITY FOCUS | PERTH
COMPLEX TRANSPORT
tion, WA Museum on Beaufort Street,
INFRASTRUCTURE
Wellington Street, The Kings Perth
Perth is well-connected and offers a
Hotel and The Ambassador Hotel.
number of different options to get
The city also offers an Uber service
around the city. There are regular bus,
called “Uber Perth� which provides an
train and ferry journeys to help trans-
alternative option to a normal taxi journey.
port tourists and commuters daily. It has an airport which offers a shut-
BUSINESS IN PERTH
tle service for drop-off and pickup
Perth is also a popular place for busi-
from five conveniently located pickup
nesses with a number of major firms
points in the city: East Perth train sta-
choosing to hold their headquarters
58
OCTOBER 2018
59
Currency
AUD 1829
Founded in this year
and offices in the city. The conglomerate Wesfarmers, holds its headquarters in Perth and its business oper-
2.14mn Population
ations cover supermarkets, liquor, hotels and convenience store. The Australian giant is the largest company in Australia by revenue (AUD $68.4bn), beating Woolworths and
Nearest airport
12km Perth Airport
BHP Billiton and remains the biggest private employer in the country with approximately 220,000 employees. Bankwest, formerly The Bank of Western Australia, is based there too despite also w w w. b u s i n e s s c h i e f. c o m
CITY FOCUS | PERTH
‘ Just outside of the city is Mount Dale Walk Trail, a 2.5km rock walk which enables visitors to follow the contours of Mount Dale to its peak and enjoy extraordinary views of its surrounding areas’
60
OCTOBER 2018
holding offices in Adelaide, Brisbane, Canberra, Melbourne and Sydney. Having been founded in 1895, it is one of Australia’s foremost banks. Also stationed in Perth is the petroleum exploration and production company, Woodside Petroleum, which is the largest operator of oil and gas production in Australia. The city’s electricity supply is mostly generated, supplied and retailed by three Western Australian Government corporations. Verve Energy controls the coal and gas power generation stations, in addition to wind farms and other power sources. Western Power operates the physical network while the state’s largest energy retailer, Synergy, is responsible for providing the electricity to residential and business consumers. AWAY FROM WORK Perth offers a host of scenic views and adventure walks to allow business travelers and tourists an avenue to escape from the bustle of city life. Just outside of the city is Mount Dale Walk Trail, a 2.5km rock walk which enables visitors to follow the contours of Mount Dale to its peak and enjoy extraordinary views of its surrounding areas. Being located on the West Coast of Australia, Perth also provides its inhabitants with w w w. b u s i n e s s c h i e f. c o m
61
CITY FOCUS | PERTH
62
19 sun-kissed beaches. A firm favour-
mantle Markets . Having been built in
ite among locals and tourists alike is
1897, the markets are home to a num-
Cottesloe Beach, with many visitors
ber of stallholders and offers a place
enjoying swimming, snorkelling, surf-
for street performers to show off their
ing and taking in the ocean sunsets.
talent. There are art displays, musi-
The city is also home to Perth Zoo
cians and lots of photo opportunities
which offers a wide range of Australian
which come together to create a wel-
and exotic animals from around the world.
coming atmosphere for all visitors.
One of Western Australia’s most
There are a number of sports
significant landmarks is Perth’s Fre-
teams in the city that fans can get
OCTOBER 2018
63
‘ Being located on the West Coast of Australia, Perth also provides its inhabitants with 19 sun-kissed beaches’
involved in. Perth boasts men’s and women’s teams in basketball, football, Australian rules football and cricket while there are also men’s teams in baseball, ice hockey and rugby. Perth built Subiaco Oval stadium for use in the 2003 Rugby World Cup and is used for a variety of different events and officially opened a brand-new facility called the Perth Stadium in January 2018. The 60,000–seater is primarily used for Australian rules football and cricket. w w w. b u s i n e s s c h i e f. c o m
A GLIMPSE OF I CONFERENCE
Nikhilesh Ponde Global Head of Travel Strategy Facebook
Mieke De Schepper CCO Egencia
Shane O' Global Director Transpo Micro
ITB Asia, Asia’s Leading Tr Singapore at Marina Bay Sa
ITB ASIA 2018’S CONF
For more information, please visit www.itb-asia.com Supported by:
Held in:
Official Partner Hotel:
Official Partn
ITB ASIA 2018’S CE SPEAKERS
'Flaherty r of Travel and ortation osoft
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avel Trade Show is held in nds on 17 - 19 October 2018.
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m | Tel: +65 6635 1188 | Email: exhibitor@itb-asia.com
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T O P 10
Australia’s
66
Top 10 Trade Exports In 2017, Australia’s Department of Foreign Affairs and Trade (DFAT) reported a trade balance of $1.56bn – but what are the top export sectors driving Australia’s economy forward? WRITTEN BY
OLIVIA MINNOCK
67
w w w. b u s i n e s s c h i e f. c o m
T O P 10
68
10
Crude petroleum A$5.25bn
In 2017, crude petroleum brought US$3.74bn (A$5.25bn) into the Australian economy. This marked a 10.4% yearon-year rise from the 2016 export figure of US$3.39bn w(A$4.75bn). The most significant area for crude petroleum exports is Western Australia, which is said to produce over 70% of the country’s crude oil and condensate. The total share of the export market taken up by crude petroleum was 1.4% in 2017.
OCTOBER 2018
09
Wheat
A$6.06bn Last year, Australia’s wheat exports were worth a total of $4.32bn (A$6.06bn), which marked a 24.9% increase from the previous year’s $3.46bn (A$4.85bn) in 2016. Sales of wheat took a 1.6% share of the country’s total exports. While wheat exports declined by around 34% in 2017, this year the industry is experiencing steady growth of just under 7%. The eight-year low experienced last year has reportedly been helped by heavier rain in Australia’s west in the past few months.
w w w. b u s i n e s s c h i e f. c o m
69
T O P 10
70
08
Beef
A$7.45bn In 2017, beef exports took up 1.9% of Australia’s total exports, bringing in $5.31bn (A$7.45bn). This marks a moderate increase of 0.7% from the 2016 figure of $5.28bn (A$7.4bn). In fact, in 2016 Australia was reportedly the third largest exporter of beef in the world, following India and Brazil, and was named in 2017 by the Red Meat Advisory Council as the world’s largest exporter of beef, as well as the largest consumer of the produce globally.
OCTOBER 2018
07
71
Aluminium ores A$8.25bn
Aluminium ores (including alumina) made up 2.2% of Australia’s total 2017 export sales, brining $5.89bn (A$8.25bn) into the country. This marked a massive increase from 2016’s figure of $4.61bn (A$6.46bn) – as much as 30.4% year on year. Around the world, the main uses of aluminium are within the transportation, construction, electricals and consumer goods industries. The global aluminium market is valued at $133.6bn in 2015 according to Allied Market Research – this is set to increase to £167.3bn by 2022, representing a CAGR of 3.3%.
w w w. b u s i n e s s c h i e f. c o m
ASIA’S CLEAN ENERGY EVENT OF THE YEAR! SANDS EXPO AND CONVENTION CENTRE
MARINA BAY SANDS, SINGAPORE
31 OCT - 2 NOV 2018 REGISTER TODAY! 31 Oct 2018 Wednesday
1 Nov 2018 Thursday
2 Nov 2018 Friday
Opening Ceremony
Unlocking Solar Capital Asia & Financial Summit
Unlocking Solar Capital Asia & Financial Summit
PV Asia Scientific Conference
Clean Energy Leaders’ Dialogue Digital Transformation of Energy
Asian Conference on Energy, Power and Transportation Electrification
Asian Conference on Energy, Power and Transportation Electrification Site Visit
Asian Conference on Energy, Power and Transportation Electrification
International Floating Solar Symposium
International Floating Solar Symposium Site Visit
Co-located Event: Annual Asia Wind Energy Conference
Annual Asia Energy Storage Conference
Co-located Event: International Off-Grid Renewable Energy Conference
PV Asia Scientific Conference Site Visit
Co-located Event: International Off-Grid Renewable Energy Conference
Solarising Singapore and Asia
ACES Exhibition
ACES Exhibition
www.asiacleanenergysummit.com Main Organiser
Supporting Partners
Co-Organisers
Partner Organisations
Event Partner
DRIVING THOUGHT LEADERSHIP IN RENEWABLE ENERGY TO GREATER HEIGHTS IN ASIA The Sustainable Energy Association of Singapore (SEAS) is organising the 5th edition of Asia Clean Energy Summit 2018 (ACES) with a robust list of speakers who will set the benchmark for best practices, debate trends and solutions in the regional solar and renewables industry. The Summit will be held from 31 October to 2 November 2018 at the Sands Expo and Convention Centre, Marina Bay Sands. Held in conjunction with the Singapore International Energy Week, ACES 2018 will feature prolific experts who are leaders in government & public policy, industry leaders from the private sector operating around the world and researchers working on cutting edge technologies. ACES 2018 is co-organised with the Energy Research Institute @ Nanyang Technological University and the Solar Energy Research Institute of Singapore (SERIS). The Energy Research Institute @NTU (ERI@N) is a leading research institute which aims to spearhead human capital expertise in sustainable building technologies, renewable energy, energy storage, multi energy systems, electro-mobility and maritime clean energy. SERIS, located at the National University of Singapore, is the republic’s national institute for applied solar energy research.
In keeping with its theme of “Harnessing Clean Energy for the Future”, SEAS the 2018 conference-and-exhibition to create new forays. ACES 2017 attracted more than 2,500 participants with about a third of them comprising C-suite decision makers. Key highlights of ACES 2018 include: • Clean Energy Leaders’ Dialogue, a high-level forum where leaders from top utility providers, photovoltaic (PV) manufacturers, developers and policy professionals will exchange best practices, while debating trends and solutions in the clean energy industry; • Solarising Singapore and Asia, a forum where experts will speak about opportunities in solar energy and solar leasing, including insights into Singapore’s efforts to accelerate the deployment of PV systems in the republic; and • The first PowerACE competition for start-ups in the energy sector, for the first time, provides a platform where clean energy start-ups will be able to showcase innovative ideas to industry-leading experts. Over four phases till November 2018, the chosen start-ups will be able to get mentoring and guidance from industry experts to take their ideas to fruition. For more information on the Summit, visit https://www.asiacleanenergysummit.com/
For information about ACES and co-located events, please visit ACES website at www.asiacleanenergysumit.com OR contact us at Tel: 6338 8578 Email: secretariat@asiacleanenergysumit.com
T O P 10
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06
Gold
A$17.63bn Though down by 6.5% from 2016, gold still has a place on Australia’s list of top exports, and contributed a total of $12.58bn (A$17.63bn) in exports. While this dipped from 2016’s figure of $13.46bn (A$18.86bn) but in 2017, the precious metal still takes up 4.6% of total exports. The largest gold mine in Australia is Boddington Gold Mine, located around 100km from Perth in western Australia. Upon the mine’s reopening in 2010, it was predicted to have a production capacity of 1mn ounces over five years. Proven ore reserves at the end of 2011 amounted to 20.3mn ounces of gold, as well as 2.26bn ounces of copper. OCTOBER 2018
05
75
Personal travel services A$21.28bn
Personal travel services (excluding education-related travel, which makes up a significant segment of Australia’s service exports on its own), maintained a steady year-on-year rise of 0.4% in 2017. The invisible export brought $15.18bn (A$21.28bn) into the economy, following on from $15.12bn (A$21.19bn) in 2016. Overall, personal travel makes up 5.5% of Australia’s exports. Currently, Australia is one of the beneficiaries of a tourism boom in the surging aviation markets of China and India: around 1.4mn visitors came to Australia from mainland China, marking a 13% year-on-year increase, while visitor numbers from India rose 15%, reaching 302,900. w w w. b u s i n e s s c h i e f. c o m
T O P 10
76
04
Natural gas A$25.62bn
In 2017, Australia exported $18.34bn (A$25.62bn) worth of natural gas. This industry has grown significantly over the past couple of years, with export sales increasing by 43% from 2016’s figure of $12.82bn (A$17.91bn). As of yet, natural gas makes up 6.6% of the total export space – but according to Business Insider this is only set to rise, with Australia expected to become the world’s largest exporter of natural gas by 2019. A report stated that LNG (liquefied natural gas) exports from the country will reach 77mn tonnes in 2018-19, up from 52mn in 2016-17. OCTOBER 2018
03
77
Education-related travel services A$30,26bn
According to the Department of Foreign Affairs and Trade, education-related travel encompasses the travel, fees and living expenses of students studying in Australia, across the sectors of: higher education; vocational, education and training; English Language Intensive Courses for Overseas Students; as well as an ‘other’ segment which includes non-award courses, students from New Zealand, and various government scholarships. Overall, this market brought in $21.71bn (A$30,26bn) in 2017, marking a significant increase of 17.3% from 2016’s figure of $18.5bn (A$25.79bn). Education-related travel services take up 7.8% of Australia’s total exports. w w w. b u s i n e s s c h i e f. c o m
ASEAN’s Business P & Festival for Innova & Digitization Hall 7-8, IMPACT, Bangkok
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T O P 10
02
Coal
A$57.13bn It’s no surprise to see Australia’s coal industry high up on the exports list, and indeed it takes up a share of 14.8% of total 80
exports. It is interesting to note that the fossil fuel industry is still experiencing massive growth, with 35.2% exhibited year on year in 2017. The figure amounted to $41bn (A$57.13bn) as opposed to 2016’s $30.32bn (A$42.27bn). The biggest operational coal mine in the country in terms of output is the Bulga Coal mine in Singleton, New South Wales, with 10.8mn tonnes of coal mined per annum, all of which is exported.
OCTOBER 2018
81
w w w. b u s i n e s s c h i e f. c o m
T O P 10
82
OCTOBER 2018
01
Iron ores and concentrates A$63.09bn
Iron ores and concentrates brought in a total of $45.26bn (A$63.09bn) into the Australian economy in 2017 and made up 16.3% of total exports. This marked a healthy 17.4% increase from 2016, when the industry made $38.57bn (A$53.76bn). The biggest iron ore mine in the country – and reportedly the seventh largest in the world – is Hamersley Basin, located in Western Australia, which has 1.72bn tonnes of proven and profitable iron ore reserves as investigated at the end of 2021. Rio Tinto and BHP Billiton are responsible for about 90% of all iron ore production in Western Australia, with Rio Tinto boasting a profit of $8.8bn (AU$12.26) in 2017.
w w w. b u s i n e s s c h i e f. c o m
83
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S U P P LY C H A I N
SCT LOGISTICS:
Transparency and a commitment to service through digitisation WRIT TEN BY
OLIVIA MINNOCK PRODUCED BY
ANDY TURNER
w w w.busi ne ssc hief. com
87
SCT GROUP
SCT GROUP’S CIO SEAN ATCHINSON DISCUSSES HOW THE COMPANY’S JOURNEY TO DIGITISATION IS MAKING IT EASIER TO CARRY CARGO THROUGHOUT AUSTRALIA
W
ith 3,934km between Perth
joined by Sean Atchinson, a CIO
and Sydney, transporting
determined to bring technology to the
cargo across Australia is
fore and make digitisation instrumental
no mean feat. Since 1974, SCT Group has been providing an alternative logistics
solution where options were previously 88
in fulfilling SCT’s aim to provide open, transparent and efficient service across Australia. “Our growth has been achieved
few, and has grown to be the most
through a very focused approach to
efficient independent freight service
the business. In addition, more recently
in the country. Providing rail and road
there are only two major players in the
services hauling dry freight, refriger-
rail freight space: Pacific National and
ated and bulk cargo, the business
SCT,” Atchinson explains, praising
prides itself on openness and transpar-
Smith’s initial foresight in challenging
ency. It is also a company that, despite
the status quo of the nationalised rail
its substantial size and reach, cares
industry. SCT now provides logistics
about every single customer from the
services across the country and has
smallest business on its books to
a number of inland ports serviced next
world-renowned retailers like Aldi and
to mainline freight railways. In the past
Woolworths.
two years, SCT has opened two new
Founded by Peter Smith, SCT is still very much a family affair, with Peter’s sons Geoff and Glenn on the board of
inland ports: at Bromelton, Queensland and Wodonga, Victoria. “We are predominately one of the
directors and the founder himself
largest freight movers East-West, from
maintaining a keen eye on operations
Sydney all the way to Perth, transport-
as chairman. In 2015, the Smiths were
ing freight that contains white goods,
OCTOBER 2018
S U P P LY C H A I N
“That journey of transformation through a technology platform is now starting to pay dividends to the business, and year on year I’m successfully taking costs out of the IT business” — Sean Atchinson, SCT CIO
w w w.busi ne ssc hief. com
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SCT GROUP
90
“ I work with all staff – if we’re rolling out a new technology, we’re on the warehouse floor with them.We understand what they’re doing, how they’re using it and what they need to use it for” — Sean Atchinson, SCT CIO
OCTOBER 2018
S U P P LY C H A I N
as well as foodstuffs from dry all the way down to -24 degrees.” SCT moves all this and more across the length and breadth of Australia with a commitment to making logistics faster, easier and more efficient. From previously having a focus on road line haul that required two drivers to move it across the country, the business can now move a 1.8km train hauling 5,500 tonnes of freight across Australia in three days, all in one journey. In addition, the 300m-long Bromelton warehouse allows a train to run straight through it with no shunting required, so containers can be removed and wagons unloaded as smoothly as possible. “In the three-and-a-half years I’ve been with the company, there’s been so much growth,” Atchinson reflects. However, it hasn’t all been smooth sailing. Atchinson joined the company six months after it had gone live with its new SAP environment – a vital digital solution for many businesses, but one which SCT needed the CIO’s help to implement properly. “They were actually talking about getting rid of it: they’d had a very tough go-live and were relying on consultants to support the business for a number of months post go-live. There were major issues throughout the systemic processing of customers’ orders to invoicing.” Despite these teething issues, Atchinson w w w.busi ne ssc hief. com
91
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S U P P LY C H A I N
CLICK TO WATCH: SCT BROMELTON LAUNCH VIDEO 93 had worked with SAP solutions through-
business, and year-on-year, I’m
out his career and wasn’t willing to give
successfully taking costs out of the IT
up on the world-renowned ERP
business.” Far from cutting corners or
platform just yet. “The transformation
laying off staff, these savings have
could have gone belly up, but working
been made simply by changing the
with some key support organisations,
way SCT operates.
as well as staff and executives right
“We’ve in-sourced our support rather
up to Peter Smith, we’ve kept SAP and
that outsourcing,” Atchinson explains.
turned the whole environment around.”
“We’ve also renegotiated with core
Fast forward to today, and proper,
partners and gone into new commer-
collaborative development of the
cial contracts which have allowed us to
platform is actually saving the firm
save money by utilising the technology
money. “That journey of transforma-
better than we previously have. For a
tion through a technology platform is
CIO, it’s a rare opportunity to come in
now starting to pay dividends to the
where something’s failing and be able w w w.busi ne ssc hief. com
SCT GROUP
to turn it around.” Through Atchinson’s work and senior leadership support, technology has been successfully brought to the fore of SCT and
1974 Year founded
is embraced as a driver – almost literally – of the logistics giant’s growth. “We’ve recently introduced new technology in all of our trucks which allows us to do electronic work diaries for our drivers and fatigue management. Drivers can now control their breaks without having to go through the paperwork.” In addition, technology is used to allow trucks and deliveries to be tracked more effectively and SCT is looking to move electronic 94
delivery and pickup management onto a new platform which will integrate better into cabs and carry all the information necessary for a fleet, using a single SIM card per vehicle. “The ability to have a single SIM that controls the phone, telematics and tablets in our trucks will have paid for itself within three years just through telco savings,” Atchinson enthuses. As well as making life easier for staff, a customer reporting platform has been introduced to bolster SCT’s commitment to service. “We’ve rolled out a customer reporting portal which allows our customers to track all the movements of their freight. We notify them when we’re going to pick up and they can see it online in a report to the time that it has been delivered, as well as being provided OCTOBER 2018
1,000+ Approximate number of employees
S U P P LY C H A I N
with proof of delivery.” Atchinson
transparency of data,” says Atchinson.
explains that all this is done in almost
“It’s there at their fingertips, allowing our
real time – or around four seconds
account executives and customers to
behind our core platform.
talk in exactly the same language.
Now, looking to trade electronically with national customers in the B2B space, SCT is also developing a B2B
We’re looking at exactly the same pieces of information.” A common worry related to automa-
template based on GS1 – the global
tion is that the human touch will be lost
developer of business standards for
but Atchinson is keen to point out that
communication such as barcoding.
this won’t be the case for SCT. “We
“We’ve worked very closely with GS1
haven’t removed the account execs.
and also our members within that
The customer can do self-service and
environment.”
still have face-to-face contact. SCT
One of the most important things to
prides itself on this. This relationship is
ask of any digital transformation is what
absolutely key for Peter – that’s how he
it will mean for the customers involved.
built the business and that mentality
“It’s tracking; it’s all of their history; it’s
still exists today. We still have that very w w w.busi ne ssc hief. com
95
SCT GROUP
96
personal approach, but technology
they’re doing, how they’re using it and
is an enabler to allow transparency
what they need to use it for. Feedback
between customers, account execs
from those at the forefront of what has
and account managers.”
been rolled out is critical to any
In terms of finding the right digital solution to help SCT grow, transparency with both staff and vendors is key.
success that a technology platform provides to the business.” In the coming years, growth at SCT
“We run roundtables regularly,” says
is set to take many forms across its
Atchinson. “It’s very consultative. I work
divisions from property and rail to solution
with all staff – if we’re rolling out a new
enablement. “We’re looking to remove
technology, we’re on the warehouse
a lot of the manual steps and provide
floor with them. We understand what
technology that supports growth and
OCTOBER 2018
S U P P LY C H A I N
“We still have that very personal approach, but technology is an enabler to allow transparency between customers, account execs and account managers” — Sean Atchinson, SCT CIO
97
supports a mission with our customers
ache) to an integral driver of growth
to provide further transparency on their
and service excellence for the company.
end-to-end moving of freight. My focuses
“Now, if I speak to the board it’s about
right now are expanding IoT across our
what we’re going to do next. It’s about
transportation methods – movement into
looking forward,” he concludes. We
cloud is key. As we grow, our technology
want to build on what we’ve got. We’ve
platform will allow us to upscale, pretty
got sustainability, we’ve got perfor-
seamlessly, our hardware.”
mance, we are enabling our business.
It’s clear that even throughout
“The conversation has completely
Atchinson’s own journey at SCT Group,
changed. It’s not about ‘time to throw
technology has gone from being an
it out’, it’s about ‘we want to do this
add-on (and indeed at times a head-
with our business’.” w w w.busi ne ssc hief. com
98
OCTOBER 2018
S U P P LY C H A I N
Jabil pushing forward digital transformations
w w w. b u s i n e s s c h i e f. c o m
99
JABIL
$19bn
Approximate revenue (2017)
1966
Year founded
180,000 100
Approximate number of employees
MANUFACTURING SERVICES LEADER JABIL IS ENABLING DIGITAL TRANSFORMATIONS, BOTH WITHIN ITS OWN ORGANISATION AND FOR ITS CUSTOMERS WORLDWIDE WRIT TEN BY
JA MES HENDERSON PRODUCED BY
CHARLOT TE CL ARK E
O
rganisations around the
world are embarking on company-wide transfor-
mations, embracing a future de-
fined by technology. But Jabil – a manufacturing services leader employing approximately 180,000 people – finds itself in the unique position of driving both its internal digital transformation, as well as leading transformative efforts on behalf of some of the biggest
OCTOBER 2018
S U P P LY C H A I N
101
and best-known brands in the world. Jabil categorises the role it plays in
sively complex supply chains. We partner with these companies to streamline
its customers’ digital transformations
supply chain orchestration while helping
into three sections, says John Caltabi-
them reduce cost and risk.
ano, VP of Supply Chain Management.
“The second category of customers
“We’re a manufacturing services provider
are those going through a transforma-
so we support diverse customers across
tion due to market disruptions. They
a variety of markets with different digital
may be going through divestitures or
transformation needs. You can group
acquisitions. They also may be facing
these customers into three general
major changes in their industry sector,
categories. In one category are large
which requires them to reshape how
multinational organizations with mas-
they operate. These organizations look w w w. b u s i n e s s c h i e f. c o m
JABIL
to us for thought leadership, market benchmarking and product proof of concept support. It’s a very collaborative approach. “Then you have a third kind: customers that are really up-and-coming and don’t have to rectify historical issues. They can concentrate on what they’re good at and say to Jabil, ‘I want you to run my supply chain’. Their perception is that they’re not going to invest in those capabilities, when we can do it for them.” At the same time, Jabil is transforming how it runs its own supply chains, and is 102
implementing a digital initiative around the platforms it utilises to deliver its services, signalling a move towards cloud-based infrastructure. The size of the business – over 100 factories in 29 counties, hundreds of customers and a supply chain of 17,000 companies – means the transformation is one of real scale. New technologies have already transformed how Jabil operates from a procurement perspective, says Caltabiano. “The size of our company means we have hundreds of contract negotiations going on at any one time. It’s critically important for us to expedite report generation, quickly produce analytics, drive rapid negotiations and produce results that help our customOCTOBER 2018
S U P P LY C H A I N
103
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JABIL
“ I F YOU’RE BUILDING PRODUCTS DESIGNED 15YEARS AGO WITH A SUPPLY CHAIN THAT WAS IMPLEMENTED 15 YEARS AGO, IT’S HARD TO TRANSFORM YOURSELF” — John Caltabiano, VP of supply chain management
ers achieve better business outcomes. “With our digital platforms and tools, we now utilise, data and analytics are available in real time, so we can start negotiations at any time. We can deploy pricing as soon as negotiations are completed, which changes the whole dynamic of time-fenced events. We now can change the conversation with suppliers very quickly based on our analytics and actionable insights.”
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S U P P LY C H A I N
CLICK TO WATCH : ‘JABIL COMPANY OVERVIEW’ 105
Working with so many companies in
After all, if you’re building a product
locations across the globe gives Jabil a
designed 15 years ago with a supply
better perspective than most when
chain that was implemented 15 years
speaking about industry sectors keen
ago, it’s hard to transform how you
to embrace disruption and digitisation.
operate because of long-term invest-
It is Caltabiano’s belief that companies
ments and legacy operations.
in the markets that are being most
“To an extent, how prepared compa-
significantly disrupted – notably by IoT
nies are to embrace the change is partly
– are ‘moving the fastest’.
dictated by the dynamics of the industry
“I think the regulated businesses are the slowest,” he observes. “Regulated
they work in.” When it comes to Jabil’s own digital
products tend to have lengthy life
transformation, the company is on a fast
cycles, which makes it difficult to change
track, analysing how new technology
the way you run their supply chains.
can speed the myriad transactions that w w w. b u s i n e s s c h i e f. c o m
JABIL
“ WITH THE DIGITAL PLATFORMS AND THE DIGITAL TOOLS WE NOW UTILISE, DATA AND ANALYTICS ARE AVAILABLE REALTIME, SO WE CAN DO NEGOTIATIONS ANYTIME WE WANT” 106
— John Caltabiano, VP of supply chain management
OCTOBER 2018
S U P P LY C H A I N
107
w w w. b u s i n e s s c h i e f. c o m
JABIL
“ W E HAVE TO THINK DIFFERENTLY BECAUSE IT IS A NEW GENERATION OF PEOPLE WE’RE HIRING. YOU HAVE TO THINK ABOUT WHAT’S INTERESTING TO THEM” — John Caltabiano, VP of supply chain management
take place every day. “We have, in my division, 1,500 buyers, so I’m buying over 350,000 parts on a quarterly basis,” says Caltabiano. “That’s very transactional and repetitive and there is certainly the opportunity for part of that decision-making process to be accelerated and streamlined through digitisation, automation and analytics.” Jabil believes that by automating some of the more transactional responsibilities, the prospect of a career in manufacturing and supply chain operations will become even more attractive to emerging young talent.
108
EXECUTIVE PROFILE
John Caltabiano is Vice President , Global Supply Chain at Jabil and is responsible for all Materials and Customer Supply Chain Solutions for the company’s Engineered Solution Group Division. He is responsible for driving supply chain strategies for all of ESG’s Businesses. Prior to this role, John was Vice President of Global Sourcing where he was responsible for World Wide Commodity Management, Sourcing, Centralized Procurement and Supplier Development covering a spend of over $12 Billion. With more than 30 years of supply chain experience, John recently returned to St. Petersburg, Fla., following a three-year assignment in Singapore.
OCTOBER 2018
S U P P LY C H A I N
109
w w w. b u s i n e s s c h i e f. c o m
JABIL
“People who come into the workforce don’t want to sit at a desk and place orders. A machine could do that. We have to think differently because it is a new generation of people we’re hiring. You have to think about what’s interesting to them. “We recruit new college grads out of supply chain curriculums, from some of the top schools, and they can bring a lot of talent to the manufacturing sector. What we can do is attract them with our digital tools. They want to dive into it and they’re exactly the kind of people we want because to take 110
this forward, you have to have practitioners. “We can’t go back to the old way, because they will come in and only think about the new way. A benefit of the transformation has to be bringing in the talent that knows how to use these tools and think differently about their work.”
OCTOBER 2018
S U P P LY C H A I N
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112
Coal Services: a growing mine of data WRIT TEN BY
ANDRE W WOODS PRODUCED BY
ANDY TURNER
MINING
113
COAL SERVICES PT Y
114
Gillian Kidson, Head of IT at Coal Services, on how she is overseeing the digital transformation of the company to benefit its internal users and extensive stakeholder base
T
he challenge of transforming a business is no easy feat. When that push for change
requires a shift to a more agile customer focused model, as well as harnessing and renewing technology platforms to not only future proof the business but create a best practice environment, that task can become even more complex. Coal Services is an Australian industry-owned Specialised Health and Safety Scheme which delivers a suite of services in relation to the NSW coal
OCTOBER 2018
MINING
115
mining industry including workers
of the industry, which presents its own
compensation insurance, health
set of challenges in that the status quo
surveillance, occupational hygiene
must be maintained at the same time
monitoring, and training and rescue.
as the organisation builds a new way
Owned by industry for industry,
forward.
through the NSW Minerals Council
Gillian Kidson is Head of IT at Coal
and the Construction, Forestry,
Services and it is her job to oversee
Maritime, Mining and Energy Union
the transformation of the company
(CFMMEU), it has been protecting
from a technological point of view,
workers in one form or another for
to work with leading edge vendors
more than 90 years.
and create a best practice environ-
The company has statutory functions that are critical to the health and safety
ment for IT infrastructure. “I needed to gain an intimate knowlw w w.busi ne ssc hief. com
MINING
edge of the company strategy and build a roadmap that allowed IT to help enable the key infrastructure required to realise our strategy. There was an appetite for significant efficiencies to be made using new technologies and improved data management; it was a case of building the right IT structure, architecture and infrastructure,” she reveals. The biggest challenge for Kidson and her team was working through the company’s legacy systems, which represent nearly 100 years of activity with each part of the business also having different requirements and applications, many of which weren’t being utilised. “Not only was it a bit of a clean-up, but we also looked at how we could utilise these tools across multiple businesses; not just one,” she comments. “We are upgrading the legacy infrastructure to a level where it will able to provide significant performance improvements in meeting the needs of the new systems that are coming in. We integrated current technologies, including: AWS, Azure and Office 365 to ensure we have best practice systems in place to allow us to build for the future and enhance performance. In order to implement changes to legacy systems, particularly within the insurance arm of its operations, Coal Services has, for
“ I needed to gain an intimate knowledge of the company strategy and build a roadmap that allowed IT to help enable the key infrastructure required to realise our strategy” — Gillian Kidson, Head of IT, Coal Services
117
COAL SERVICES PT Y
“ The goal is to provide systems that will give ease of access for our employees to provide better levels of service to customers” 118
— Gillian Kidson, Head of IT, Coal Services
centric approach to injury management and improved experience for the worker. At a larger level, and because it operates across multiple touch points with its customers, Coal Services has amassed a large store of data surrounding workplaces, mine companies and workers. “An important part of the architectural design has been geared towards how we share the data that can be shared and lock down the data that can’t. So, we’re just working through that architecture at the moment with a view to implementing some master data sets across the business and
example, partnered with Finity to
a middleware application to enable
develop a tool that blends an individu-
us to transfer and share that core
al’s entire claims history together so
data,” Kidson explains.
case managers and injury management
“The goal is to provide systems that
advisors will have a holistic view of the
will give ease of access for our employ-
person (rather than a single claim or
ees to provide better levels of service
injury view) to enable a more person-
to customers. But at the same time,
OCTOBER 2018
MINING
119 these new systems must provide useful
of security they can.
information to help us glean specific
So, how does the system function
insights and improved knowledge to
when facing the client? “We have five
enable better solutions. This will enable
different businesses that will interact
the organisation to be more customer
with the coal miner for various reasons.
centred and in doing so, will allow for
From a health perspective it can be
an increase in customer efficiencies.”
anything from a pre-work placement
With large data assets comes the
medical required under the statutory
need to protect personal information
responsibilities of Coal Services,
and comply with privacy policies too.
to annual medicals for mines rescue
To ensure these requirements are met,
brigadesmen. On the other side,
Coal Services has engaged InfoTrust
you’ve got injury claims and manage-
as its security partner, who are
ment processes as part of the
working with Kidson at each stage of
workers’ compensation component
these projects to ensure that they
of the scheme. In addition, every NSW
apply the best and most trusted form
coal miner will likely come through our w w w.busi ne ssc hief. com
www.virtualitservices.com.au | support@virtualitservices.com.au |
CONTACT US
Virtual IT Services’ core business is Managed Services. We provide a range of flexible support options to partner with our customers to improve the IT environment and provide excellent service. We differentiate ourselves from other Managed Service Providers by offering complementing consulting services and development services.
MINING
CLICK TO WATCH : COAL SERVICES – CORPORATE VIDEO 121 doors for some sort of training, and
can access personal data, see their
we also maintain their qualification
qualifications, and check their
records,” she said.
medical information.”
“The interactions are as varied
The coal industry is undergoing
as the data sets, so we are working
dramatic change and, as a result,
towards giving people access to see
capabilities at Coal Services need to
what training they’ve had and when
be nimble and agile enough to respond
they did it. They will be able to see how
to the evolving industry landscape.
many medicals they’ve had and keep
“While improving internal system
tabs on their claims. They should be
performance and data collection
able to go in through a portal and see
capabilities are important, it’s of greater
all their information. The immediate
significance that we can understand
goal is to give that capability back to
the data and work with industry to recog-
the miner so they have some visibility
nise emerging issues.”
of their own information; it means they
“Changes in technology can have a w w w.busi ne ssc hief. com
COAL SERVICES PT Y
122
1921
Year founded
330+
Approximate number of employees
OCTOBER 2018
MINING
direct impact on that and can aid in the development of solutions. Mine workers are often transient and the industry employs a good deal of contractors, which requires us to respond quickly to provide the best possible services to customers. It’s give and take on any day of the week and adaptability is key.” Kidson has fostered a number of long term strategic partnerships as a way to not only help deliver on requirements, but to also help improve performance as the organisation develops its own capabilities. “Virtual IT has been on board since the beginning providing assistance with architectural and network design as well as business intelligence tools. Having them on board has been a learning curve for us all and has provided us with some insights into what we’ve got and how best to reuse what we can.” One of the first areas Kidson looked at was occupational health who had been running their business across six different applications. The idea is to consolidate as much of that as possible into one application. “We’ve consolidated the first two applications with the help of Appian, who provide a platform Workflow Tool. We’ve consolidated bookings and health assessments and that’s due to go live in November.” With data comes responsibility and security and Coal Services looked to Trusted Habitat w w w.busi ne ssc hief. com
123
COAL SERVICES PT Y
when it came to data governance. “We need to be very clear over data flow and ownership. Trusted Habitat has been working with us to help put some of the rules in place and to look at how we manage that flow,” Kidson explains. Coal Services’ employees also need to make sure that data is available and can be where it needs to be at the right time. As a result, and to ensure best
124
“ We need to be very clear over data flow and ownership. Trusted Habitat has been working with us to help put some of the rules in place and to look at how we manage that flow” — Gillian Kidson, Head of IT, Coal Services
practice, the company has gone for a new high-speed network, supplied by Telstra. Meanwhile, NTT is working with Coal Services on disaster recovery and business continuity planning for the infrastructure and server environment. “We’re currently working our way through what that’s going to look like, with a view to implementing a ‘disaster avoidance’ environment and not the standard ‘disaster recovery’. “The strategy in place at the moment, has probably got another
OCTOBER 2018
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125
two to three years to run. We’re
What these long term strategic
obviously adding to that all the time
partnerships do is allow us to
and it’s constantly under review. It’s an
improve performance and implement
ever-evolving piece of work. If we can
best practice solutions across the
get to the point where we’re delivering
business lifting both our internal and
that well, then we’ll start to see a bit
external customer experiences. The
more of the AI (Artificial Intelligence)
changes to our IT infrastructure will
technology being introduced.”
provide tremendous benefits towards
“First, we will have somebody
improving our stakeholder service
logging into a portal, then we would
provision in a significantly more
like to see that portal being more
effective and efficient manner.
intuitive and intelligent and delivering content to the customer or client based on their actions.” w w w.busi ne ssc hief. com
126
OCTOBER 2018
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MASAN RESOURCES THE FUTURE POTENTIAL OF TUNGSTEN IN VIETNAM WRIT TEN BY
DA LE BENTON PRODUCED BY
A LE X PAGE
w w w. b u s i n e s s c h i e f. c o m
127
MASAN RESOURCES
MASAN RESOURCES HAS SUCCESSFULLY DEVELOPED THE LARGEST TUNGSTEN MINE IN THE WORLD, SHINING THE SPOTLIGHT ON VIETNAM’S EMERGING MINING SPACE
L
ooking across the global mining map, Canada, Australia and Africa dominate the conversation with regards to resource rich geographies and untapped potential.
The mining industry is cyclical and that in turn forces compa128
nies to look for new resources and new opportunities in new and emerging markets. One such emerging market, is Vietnam. Vietnam is a mining jurisdiction that is the very definition of untapped potential. With more than 5,000 deposits of more than 60 different types of metals, including 7% of the world’s reserves of bauxite, Vietnam could very well be a major mining market of the future. In order to turn this possibility into reality, not only will it require investment but smart investment, leadership and a network of international partners to collaborate as part of a platform to drive this market. This is exactly what Masan Resources strives to achieve. Through the acquisition of a controlling interest in Nui Phao Mining, Masan Resources has worked to significantly develop the Nui Phao Project – the world’s largest tungsten mine.
OCTOBER 2018
MINING
Craig Bradshaw, CEO of Masan Resources & General Director at Nui Phao
129
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MINING
131
Overseeing this development is
fluorspar mines in the world as well as
Craig Bradshaw, CEO of Masan
being the largest bismuth mine in the
Resources and General Director at
world too,” he says. “But Vietnam has
Nui Phao. Having worked on the project
so much untapped potential in terms of
over the last seven years, under the
people too with quality of life, educa-
previous CEO and succeeding him in
tion and infrastructure all improving.
2015, Bradshaw has witnessed first-
“When you combine the resource
hand just how much potential both
potential with the human workforce
Vietnam and the mine itself has to
potential, you really begin to recognise
dictate the global mining market.
how close Vietnam is to changing
“We’re the world’s largest tungsten mine, up there as one of the leading
the mining conversation in the world.”
MASAN RESOURCES
“ We’re the world’s largest tungsten mine, up there as one of the leading fluorspar mines in the world as well as being the largest bismuth mine in the world too” 132
— Craig Bradshaw, CEO of Masan Resources & General Director at Nui Phao
OCTOBER 2018
MINING
The project produces around 3.5 to
more challenging here than at any other
3.8mn tonnes of ore per year, including
mine in the world, given the nature
tungsten, bismuth, fluorspar and small
of the minerals.”
amounts of copper and gold. Bradshaw
Alas, Bradshaw points to consider-
notes that the challenge then becomes
able success that he has overseen at
one of processing those different
the project in recent years. In 2017,
minerals, both effectively and efficiently.
Masan Resources reported a record
“It really is a challenge in being able
year for production across all of its
to process those minerals and extract
commodities, with a 5.7% increase year
them at different stages of the process,”
on year with tungsten, copper and acid
says Bradshaw. “I’d argue it’s probably
grade fluorspar production increasing
w w w. b u s i n e s s c h i e f. c o m
MASAN RESOURCES
134
13.3%, 8.5% and 7.6% respectively. But what does Bradshaw attribute
a challenge made up of different techniques, different sciences and
this success to? For him it is simple:
processes. It’s a good challenge,
it is the people and the team that he
but how do you solve it?”
has amassed over time. “The difference between good
Masan Resources solves this problem through a truly collaborative approach.
companies and bad companies are
Bradshaw believes that no one in the
the people that they have and the skills
mining industry will come into a business
that they are allowed to bring into
and solve a problem with the “perfect
problem solving,” he says. “When you
background” rather he looks at attracting
look at the challenge we face, it’s
and pooling people together that can
OCTOBER 2018
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MINING
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bring different approaches and
workers out there looking to embark
different viewpoints to a problem.
on a career in mining.
“Collectively then, it is just about
This is where other companies turn
looking at a problem or a challenge
towards recruitment agencies or mining
through different angles,” he says.
service providers, but Bradshaw
“They bring different core competencies,
approaches this a little differently.
different backgrounds and experiences,
“When we are trying to build a company
they approach it differently and this
and recruit people, we don’t just go and
creates real collaborative effect.”
seek out specific agencies for each
This collaborative approach starts
specific area of work in mining,” he says.
at the recruitment level. The mining
“Sure, we got people who had experi-
industry, through its labour intensive
ence across different metals and
nature, is often one that is plagued by
different processes but for me what’s
skills shortages or a general lack of
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MINING
“They can have the best knowledge
Bradshaw recognises this responsi-
of tungsten or fluorspar, but they need
bility to be able to supply the market
the right mindset and work ethic. That’s
and understands the key role that
what makes us unique, we have a group
Masan Resources can play in building
of people with all their different experi-
the capabilities of Vietnam’s mining
ences but they come to work and they
industry to answer to the demand.
challenge each other. That’s a work
This is where Masan Resources’
ethic we strive for and is what ultimate-
strategy of acquiring assets across
ly leads us to success.”
Vietnam will prove key. Bradshaw
As the world’s largest tungsten mine,
believes that as the company looks
the Nui Phao will both influence and be
to the future, it will look to benchmark
influenced by the market demand. With
the industry through the Nui Phao mine.
its uses in cutting tool technologies
Nui Phao is the first mine in Vietnam
used in the aerospace, defence and
to operate to international standards.
automotive industries, tungsten is a key
That in itself is no small feat and it is
mineral now more than ever before.
a feat that Bradshaw feels will continue
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139
MASAN RESOURCES
140
“We’ve been successful in developing the mine and so the future for us is to be the number one producer of tungsten in the world, or within the top three. There’s no reason we can’t be,based on how successful we’ve been with our current portfolio” — Craig Bradshaw, CEO of Masan Resources & General Director at Nui Phao
OCTOBER 2018
MINING
141
w w w. b u s i n e s s c h i e f. c o m
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MINING
to define the future growth of
There’s no reason we can’t be
Masan Resources.
based on how successful we’ve
“There is real opportunity across Vietnam,” he says. “We are
been with our current portfolio.” The mining industry is cyclical
looking to acquire new assets
and one of the biggest challeng-
and replicate what we’ve done with
es in the world, be it gold, copper
Nui Phao, not just in tungsten but
or tungsten, is that supply may
in other resources.
one day meet the current demand
“We’ve been successful in
but it will inevitably fall into a deficit.
developing the mine and so the
Bradshaw is all too aware of this
future for us is to be the number
and points to the Vietnam account-
one producers of tungsten in the
ing for approximately 40% of the
world, or within the top three.
world’s supply of tungsten 143
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MASAN RESOURCES
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MINING
145 presenting an opportunity for the company to play a key role in the future of this market. “We’re independent from other producers,” he says. “The rest of the world is in a deficit as the likes of China rely on tungsten for its industrial sector.
industrial sector. We embody the
“Masan Resources is the number one
“Vietnam can do” spirit, and we are
primary TC producer Ex-China, with
strongly positioned not only to signifi-
36% of the non-China market, and we
cantly increase shareholder value,
have clear operational plans to become
but more importantly, to enhance
the largest producer and supplier of
social economic value as a representa-
tungsten chemicals globally.”
tive of Vietnam globally.”
“I hope Vietnam can be proud of Masan Resources’ ambition and ability to be a dominant player in a global w w w. b u s i n e s s c h i e f. c o m
146
BAI Communications
on
OCTOBER 2018
TECHNOLOGY
147
the move WRIT TEN BY
JOHN O’HANLON PRODUCED BY
ANDY TURNER
w w w.busi ne ssc hief. com
B A I C O M M U N I C AT I O N S
Communications infrastructure specialist BAI Communications is moving fast into new markets: to do this it needed to realign the perception of IT in the business and move its technology to the cloud
P 148
eople of all generations now
a train is a frustration that BAI Commu-
accept that their mobile
nications is making a thing of the past.
phone is the technology hub
BAI Communications operates
that enables every aspect of life. Work,
in Australia (Broadcast Australia),
entertainment, social interaction,
Hong Kong, Canada, the UK and in
information, shopping, finances, learn-
New York with majority-owned BAI
ing: the device in our pocket gives us
Communications company Transit
access to all of it – just so long as we
Wireless. The company designs,
eople of all generations now accept that
builds and operates communications
their mobile phone is the technology
infrastructure – cellular, Wi-Fi,
hub that enables every aspect of life.
broadcast, radio and IP networks. In
Work, entertainment, social interaction,
Australia through Broadcast Australia,
information, shopping, finances,
it owns and operates one of the
learning: the device in our pocket gives
most extensive transmission networks
us access to all of it – just so long as
in the world, delivering 59 million
we can connect.
broadcasting hours to 99%
Mobile devices are now used
of the population. In times of crisis,
predominantly for data. So, exceptional
national broadcasters rely on them
cellular coverage and Wi-Fi is very
to maintain the connection with
important. People expect this data
Australians – flood, fire, cyclone or
connectivity, whether for texting,
other natural disaster – and emergen-
browsing or streaming. Having the
cy services rely on BAI to help keep
signal drop, or no signal at all, on
them informed.
OCTOBER 2018
TECHNOLOGY
Peter Turnbull, CIO BAI Communications 149
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B A I C O M M U N I C AT I O N S
In New York and Toronto, BAI enables more than 7 million* daily subway commuters to shop, share, stream, earn and learn through its cellular and Wi-Fi networks and in Hong Kong, commuters on the MTR collaborate, create and stay connected thanks to their trusted expertise in designing and delivering high-quality networks in confined and complex transport systems. In the UK, with its global network of experts paired with local in-depth knowledge, it is working with industry leaders
“ Switching the mindset and moving the conversation from ‘IT and the business’ to ‘IT is part of the business’ that continues to enable but also contributes to the business strategy, has been fundamental” — Peter Turnbull, CIO, BAI Communications
to explore the role of technology in
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TECHNOLOGY
CLICK TO WATCH : ‘ABOUT BAI COMMUNICATIONS’ 151 the transport system of the future. Peter Turnbull joined BAI in 2015 as
as it was challenging – establish a technology platform to modernise
its CIO. He brought with him many years’
the core IT capabilities of a mature
experience in the banking and financial
business (Broadcast Australia),
services sector, but as he says: “Core
enable the wider BAI Communications
technology is ubiquitous, you really
Group to enter into new regions and
challenge yourself to understand how
build a foundation to connect our
the business capabilities interact and
established international subsidiar-
learn the language of the domain.”
ies.” These three goals presented
While broadcasting is a key service of
a challenge he found irresistible.
BAI in Australia through the Broadcast
Though the technology infrastructure
Australia business, the company had
was largely on-premise and imperfectly
already started its expansion into
connected across the group, he
transit communications in other markets.
quickly realised his biggest challenge
“The brief I was given was as unique
was cultural. Like many traditional IT w w w.busi ne ssc hief. com
B A I C O M M U N I C AT I O N S
E X E C U T I V E P R OF IL E
Peter Turnbull Peter Turnbull is Chief Information Officer at BAI Communications An energetic business and technology executive with solid commercial experience in people and team leadership, service and program delivery, software development, business integration, IT governance and vendor management.
152
Over the past 20 years Peter has held multiple operational and leadership roles predominately in software development, wealth management, product development, professional services and assetbased leasing. Peter has successful transformed technology environments for financial services firms, decoupled technology environments from U.S parents and introduced Greenfield ICT capabilities and innovations as a vendor and as an IT Leader. Peter has a genuine understanding of how people, processes, data and technology blend together to deliver measurable business outcomes. Key Specialities: Merger and acquisition, people leadership, technical, application and data architectures, decoupling and integration of ICT environments, program delivery, vendor management and operational service delivery.
OCTOBER 2018
TECHNOLOGY
153
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B A I C O M M U N I C AT I O N S
organisations, IT operated as a service provider with a contract to ‘the business’. Switching this mindset and moving the conversation from ‘IT and the business’ to ‘IT is part of the business’ that continues to enable but also contributes to the business strategy, has been fundamental. This mindset shift is a two-way street, “as technologists we need to accept
“ As technologists we need to accept that IT no longer controls all things technology, this takes some getting used to” — Peter Turnbull, CIO, BAI Communications
that IT no longer controls all things technology, this takes some getting used to; the convergence of operational technology (OT) and IT along with ‘Edge 154
IT’ (his preferred name over shadow IT) has meant we are now a key partner helping to build new capabilities. We are domain experts in enterprise technology, our role is to establish a solid
Turnbull calls ‘enterprise plumbing’.
foundation and ensure the enterprise
“We will never be fast enough to take the
plumbing works and then partner, guide
business forward unless we have a solid
and enable our peers and their people
and adaptable set of infrastructure
on their own technology journey.”
capabilities and services to work with.” The original infrastructure he found
PILLARS OF TRANSFORMATION
was a traditional, on-premise infrastruc-
The digital transformation started in
ture, that was out of support, challeng-
2016. In describing the transformation
ing to manage and “not capable of
for BAI it is helpful to look at the four
meeting our requirements to modernise
pillars on which it depends. The first of
the Broadcast Australia business let
these was to provide a firm foundation
alone connect our international ones”.
and transform the infrastructure that OCTOBER 2018
“We needed an infrastructure capable
TECHNOLOGY
155
of bringing together IaaS, PaaS, SaaS
in his quest to move the infrastructure
and on-premise solutions. We needed
to a service model, located in the Cloud.
a fast network at each regional office,
“We have built a virtual data centre
as the existing links would not support
capability in Azure and challenged
our cloud-first aspirations. We needed
ourselves to have 80% of our workload
a set of core technology services
running in the cloud by 2020. We moved
including identity management, to run
our provisioning process to Azure
and support this infrastructure and
Resource Manager (enabling infrastruc-
most importantly, we need an infra-
ture-as-code) and rebuilt our identity
structure that could support future
and access management capability
convergence of OT and IT.�
using Azure Active Directory (AAD).
After careful consideration Turnbull
This was a game changer because it
decided a Microsoft stack was optimal
provided a way to bring together our w w w.busi ne ssc hief. com
B A I C O M M U N I C AT I O N S
subsidiaries, manage access to cloud
to enable ‘boundless collaboration’ no
services with single sign-on and
matter what time-zone people were in
quickly deploy user and device
or device they were using and how to
services like multi factor authentica-
provide a consistent and integrated
tion (MFA) and conditional access
experience for everybody. To achieve
which have traditionally been complex
this, Turnbull deployed Office 365,
or expensive to deploy and maintain.”
starting with Yammer.He progressively introduced core services including
156
A NEW WORK ENVIRONMENT
Exchange Online, Skype for Business,
The second pillar, which ran in parallel
OneDrive and Microsoft Teams
with the infrastructure overhaul, was
across Australia and the UK with plans
building a modern workplace, which
to integrate the other international
wasn’t just a hardware and Windows
subsidiaries over the next 12 months.
refresh, but a full rethink on how to
“Yammer was the first Office 365
securely access, surface and share
service we deployed in Australia,” he
information across subsidiaries, how
says. “It is a great tool for building
“ We have built a virtual data centre capability in Azure, and challenged ourselves to have 80% of our workload running in the cloud by 2020” — Peter Turnbull, CIO, BAI Communications
OCTOBER 2018
TECHNOLOGY
open, cross-functional communities
“Not only was it a big cost saving;
which have become key in transform-
suddenly you could effortlessly
ing the way we share information.” As
connect our international businesses
an example, operational questions or
into a meeting with video, voice, screen
issues with operational equipment are
sharing and instant messaging. I can
being shared over Yammer, drawing
walk into a meeting room and click
in responses from engineers across
one button to join a meeting instead of
Australia who may have encountered
having to find a dial-in number, type in
the same problem or had previous
the conference code and remember
experience with the equipment.
a PIN. Best of all when we move into
There are other game changers in
new countries we don’t have to set up
the stack. “Skype for Business has
PBX infrastructure, we just provision
replaced over 15 PBX solutions and
phone numbers and conferencing
introduced new ways to communicate,
services through a single portal.”
some expected and some unexpected,” says Turnbull.
They have deployed several Surface Hub devices, which have really
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B A I C O M M U N I C AT I O N S
158
changed the way meetings are conduct-
(even remotely) when you’re able to
ed, he adds. “With integrated Skype,
collaborate like this.”
a digital whiteboard and wireless
Recognising that BYOD can be
projection to the screen, I walk into
complicated, Turnbull introduced
a meeting and we don’t have to sit
a CYOD (choose your own device)
down anymore.
workstation approach running
“We are standing up, collaborating on
Windows 10. Faced with the need to
a digital whiteboard and effortlessly
replace older hardware, staff were
bringing people together (inside and
given a range of workstation options.
outside the organisation), through
This combined elements of choice and
technologies such as Skype/, Teams,
interoperability. These new implemen-
document co-authoring and digital
tations and policies came of course
whiteboards accessible on any device”.
with the challenge of change manage-
It’s a much more engaging experience
ment. One of the most effective ways
OCTOBER 2018
TECHNOLOGY
CLICK TO WATCH : ‘WORKING IN EXTREME WEATHER CONDITIONS – BROADCAST AUSTRALIA’ 159
of helping people, he says, was to set
tion of mobile device management)
up communities on Yammer – the most
in any location.
popular of these was the ‘modern
He’s also really pleased with the
workstation’ group where people could
introduction of the latest service for cor-
pose any questions they had. This
porate video sharing, Microsoft Stream.
group quickly evolved into a self-ser-
Distributing information via a blog has
vice platform for change management
been augmented by fortnightly videos
as, rather than having to wait for an
and interviews with specialists in the IT
answer from the service desk, their
team to explain current projects.
queries could be directed collabora-
“All this is accessible on their mobile
tively to other sources and resources
devices, their workstation or their home
within the business. It’s a dynamic
PC. Now we are combining video
repository of knowledge accessible
distribution with blog posts and posts
from any device (through the introduc-
in Yammer. Communication needs to w w w.busi ne ssc hief. com
B A I C O M M U N I C AT I O N S
come through diverse channels,
One of the first solutions introduced
recognising that people consume
was a data warehouse hosted in Azure.
information in different ways.”
The solution, implemented by Altis,
The Office 365 suite has enabled
provided a way to integrate data from
our modern world at BAI: “Being cloud-
systems of record, as well as data from
based makes it much easier for us
other internal and external API’s using
to enter new geographical markets.”
the Azure Data Factory. “We now bring together large volumes
160
DATA AND INFORMATION MANAGEMENT
of data, from multiple sources, and
The third pillar of transformation is
consume or use in their technology
focused on information management
solutions and business processes.
and Peter Turnbull is sponsoring
When we need additional internal or
this initiative across the Broadcast
external data, we use established
Australia and UK businesses.
pipelines to quickly make this data
“Many of the challenges we (and other organisations) face stem from a data or
make them available to our teams to
available,” says Turnbull. Altis also helped with the implemen-
an information issue, be it poor quality
tation of a new reporting and analytics
or unknown data or poor practices for
platform using PowerBI. The combina-
governing, exchanging and consuming
tion of the new data warehouse and
information.” This pillar, which is still
PowerBI provided a modern solution
a work in progress, “is the fabric that
to report upon (and share with
joins together our business capabilities
customers through the PowerBI portal)
as it provides a way to build a common
the performance of Digital Television
language we all speak,” says Turnbull.
(DTV) services at all Broadcast
“We have focused our strategy around
Australia tower sites.
the management, integration and availability of structured, unstructured
A CULTURE OF CHANGE
and spatial data (location-based data
The fourth pillar which has been enabled
for the design and run of our sites which
by the first three, is the progressive
includes drawings, maps and photos).”
transformation of business capabilities.
OCTOBER 2018
TECHNOLOGY
“ Now we are combining video distribution with blog posts and posts in Yammer. Communication needs to come through diverse channels, recognising that people consume information in different ways”
161
— Peter Turnbull, CIO, BAI Communications
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B A I C O M M U N I C AT I O N S
Unlike the infrastructure and modern workplace transformation, the transformation of business capabilities is a true cross-functional collaboration. Over the last 3 years, Turnbull has managed the introduction of a group-wide human capital management system (HCM), a health, safety and environment (HSE) system and upgraded the existing asset management solution. “The introduction of the HSE solution has provided an easier way to capture incidents or near misses which help us improve our HSE capability. Incidents 162
and near misses can be reported straight away by jumping onto your mobile device and registering what has occurred. This provides quicker visibility allowing for fast actions and decisions to be made.” With the technology foundations now in
“ We are standing up, collaborating on a digital whiteboard and effortlessly bringing people together (inside and outside the organisation). It’s a much more engaging experience (even remotely) when you’re able to collaborate like this”
place, Turnbull in collaboration with the leadership team, are building a roadmap
— Peter Turnbull, CIO, BAI Communications
to transform key business capabilities including service management, site access and portfolio and project management. There’s always a fifth pillar to IT transformation, and that’s security. BAI, like many companies, use a defence-in-depth approach to security across its administrative, technical and physical environments. In the first half of 2018 the company achieved ISO27001 OCTOBER 2018
TECHNOLOGY
certification: “The certification provides the certificate, however the cultural change and shift in mindset we achieved by going through this process has provided a foundation for the other pillars we have introduced. We have MFA across all our user accounts; encryption and mobile device management on our workstations and devices, we have a SIEM and security solutions monitoring our environment, However, risk-awareness and personal accountability for security on the part of everyone in the business is as important as the barriers we build�. In closing, Peter Turnbull reflects “As technologists we need to be able to accept that IT is no longer the only source of technical innovation in the business. We are finding that more and more people have IT skills and unique experiences with technology transformation when they come into the organisation. Our role is to enable them to use their skills and experiences in new and innovative ways to help drive our digital transformation.
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163
PMS
164
DIGITAL DISRUPTION IN A WIRELESS WORLD WRIT TEN BY
L AUR A MULL AN PRODUCED BY
K RIS TOFER PA LMER
TECHNOLOGY
165
B R I G H T S TA R
Brightstar handles over 80 mn devices every year and with its latest digital transformation, it looks to be involved at every state of a device’s lifecycle.
L
ike any product, today’s mobile devices have a clearly defined lifespan and Brightstar has placed itself firmly at
the heart of it. Tapping into today’s wireless ecosystem, the company looks after every stage of a device’s lifecycle for its customers, from the moment it’s manufactured to the
166
moment it’s time to trade it in and re-market it. Serving carrier, retail and enterprise customers as well as running programs for device brands directly, the SoftBank subsidiary processes over 80 million devices every single year. Now, to keep pace with today’s evolving market, Brightstar has embarked on a root-and-branch digital transformation, one which strives to standardise its solutions and deliver the same high-level service time and time again. Rising to the role of CIO of the company’s Asia-Pacific region, Mariela Millington has racked up an impressive 30 years of experience in the IT sector. During her past three years at Brightstar, Millington has seized the challenge and helped the company navigate OCTOBER 2018
TECHNOLOGY
“We’re not just more effectively servicing our customers, we’re also delivering consistent services from one region to another” — Mariela Millington, CIO APAC, Brightstar
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TECHNOLOGY
“ That means we’re looking at how we can enrich the experience not just for our own direct customers, but also for our customers’ customers” — Mariela Millington, CIO APAC, Brightstar
level of service will remain consistent. “Before, when we sold similar services in different regions, they weren’t exactly the same and the customer experience wasn’t consistent,” observes Millington. “Now we’re rearchitecting not just our technology landscape, but also how we sell and distribute products and that will really help us.” Serving industry giants, Brightstar’s client base makes for impressive reading. But on this journey, the company hasn’t forgotten the end customers who are impacted by its services. It is this unique perspective, says Millington, which has helped the company cut through the
its latest digital transformation. “One
noise when debating functionality and
of our biggest focuses is that we are
service features.
re-architecting our environment,” she
“Strategically we look at how our
explains. “Through this, we are moving
services will touch the end consumer,”
away from offering a bespoke country
she explains. “That means we’re looking
or even single customer solution to
at how we can enrich the experience
deliver a more unified platform that
not just for our own direct customers,
still manages to be customer-centric.”
but also for our customers’ customers.
Pivoting from a mainly distribution-
That’s really changed how we create
focused organisation to a wholly
solutions. It’s really a reinvention of
service-orientated one, Brightstar has
Brightstar, how we look at ourselves
undergone many seismic shifts since it
and the way we offer our services.”
was founded in 1997. This latest change
With five major lines of products and
will ensure that, regardless of where
services – supply chain and logistics;
the company’s products are bought, the
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B R I G H T S TA R
buy-back and trading services; as well as core distribution of devices and accessories – underpinned by a domainspecific advanced analytics capability, Brightstar has a substantial roster to offer. As a result, the company can offer complimentary services regardless of what phase a device is at in its lifecycle. “For us, having complimentary services allows the customer to really leverage the investment they made in their fleet of devices. Being able to manage those devices from birth 170
to death is quite unique in that we can
“ For us,having complimentary services allows the customer to really leverage the investment they made in their fleet of devices” — Mariela Millington, CIO APAC, Brightstar
OCTOBER 2018
TECHNOLOGY
£1.5bn Approximate revenue
1997
Year founded
5000
Approximate number of employees
deal with both new devices and old devices in a seamless way. That’s one of our key differentiators.” Along this journey, Brightstar has also reformulated the way consumers interact with the company, introducing a new business process management (BPM) layer that orchestrates the interaction between all relevant parties. Through this initiative, the company hopes to establish itself as a digitallysavvy partner for its customers, allowing them to define the user journey and leverage Brightstar to enrich the experience along the way. “We’ve increasingly found that our customers would like to control their user journey,” Millington explains. “Therefore, we’re architecting our solutions to be digital-friendly so that they will play comfortably inside our customer’s digital platforms. Our customers will be able to inject our services into their workflow elegantly and seamlessly. To enable this, we established a business process management layer for the orchestration of our services. This will provide us with the ability to really customise these workflows; it will allow us to create w w w.busi ne ssc hief. com
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B R I G H T S TA R
172
OCTOBER 2018
TECHNOLOGY
“ We now think about the user journey from a consumer experience perspective rather than from a Brightstar one; that’s really helped us to connect with more businesses who want to include us in their users’ journey and experience” — Mariela Millington, CIO APAC, Brightstar
different rules depending on the different customers and services in play, but it will still deliver a standardised back end. With our platform, we’re going from a very bespoke development approach to a large de-coupled architecture.” Millington also points out how the company has developed robust technology partnerships to evade any legacy issues. “To develop this digital backbone, we recognised that we needed external help to succeed in our latest digital challenge,” she notes. This helped Brightstar reimagine its services and enhance its plug-and-play service offering. It has also helped the company keep its ear
to the ground to find out about the sector’s latest emerging trends. “One of the very strong partnerships we have is with Software AG and certainly we are using their technology to push the w w w.busi ne ssc hief. com
173
B R I G H T S TA R
envelope there,” Millington adds. Echoing a belief shared by many
needed. This was very well communi-
CIOs, Millington reiterates that this
cated and re-enforced throughout the
mammoth transformation simply
build journey which helped to provide
wouldn’t have been possible if the
stability and consistency in decision
company hadn’t fostered the right
making amongst a changing landscape.”
culture. Research by Microsoft in 2017
Brightstar also made sure that, whilst the
notes that the biggest challenge
team acknowledged the value of past
organisations are facing in promoting
systems, they didn’t pull any punches
transformation is not necessarily the
when noting where it could improve.
new technology itself, but the cultural
174
to look like and why the change was
With its feet firmly in the carrier,
change required to enable it. But how
retailer and enterprise markets,
did Brightstar overcome this hurdle?
Brightstar is present in industries that
“It’s a day-to-day challenge that you
are ripe for change. The company is
need to tackle proactively,” observes
readying itself for the innovations of
Millington. “We had a very strong vision
the future and, as continuous improve-
of what the global architecture needed
ment seems to be a well-versed
E X E C U T I V E P R OF IL E
Mariela Millington CIO APAC Mariela Millington is Chief Information Officer (Asia Pacific) at Brightstar. Millington leads a team of 130 IT professionals based in Melbourne, Kuala Lumpur and throughout Asia. She is responsible for leading the architecture and deployment of supply chain platforms, applications, project portfolio management, and business development activity.
OCTOBER 2018
TECHNOLOGY
175
mantra at the company, it seems
and positioned us strongly for the
Millington’s work is far from over.
future. We now think about the user
“Have we 100% completed this
journey from a consumer experience
transformation?” Millington asks. “No, I
perspective rather than from a
think it’s a continuous journey. I don’t
Brightstar one; that’s really helped us to
think the work should ever be over
connect with more businesses who
because as solutions evolve, we’ll have
want to include us in their users’ journey
to adapt and evolve too.”
and experience.”
“Our journey hasn’t finished, but I
PMS
think the future is exciting,” she continues. “The re-imagining of our services and technology footprint has made us much more competitive now w w w.busi ne ssc hief. com
Caring for Queensland WRIT TEN BY
JOHN O’HANLON PRODUCED BY
176
K RIS TOFER PA LMER
OCTOBER 2018
H E A LT H C A R E
177
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M E T R O H E A LT H C A R E G R O U P
A fast-tracked digital transformation at Brisbane’s largest hospital group Metro South Health has just been completed, marking the end of error-prone paper-based recording
M 178
etro South Health is one of
a new patient administration system,
Australia’s biggest and most
rolling out the Cerner integrated elec-
forward-looking healthcare
tronic medical record (ieMR) to more
providers. It runs five major public
hospitals and the replacement of the
hospitals and a network of community
ageing Auslab state-wide pathology
health centres across the south-east-
system.
ern areas of Brisbane. Though it is just
The value being delivered to patients
one of 16 hospital and health services
and the community became evident
in Queensland, one million people
when data was released from the first
– nearly a quarter of the population of
of Metro South’s hospitals to become
the state – depend on Metro South
fully digitised. In 2017, leading tertiary
Health for specialist health, outpatient
facility Princess Alexandra Hospital
and hospital services.
(PAH) rolled out the full Cerner elec-
As the leading hospital group, it has
tronic medical record system, going
been spearheading the transformation
as paperless as possible. Within a
of healthcare across the Queensland
year of going digital, drug administra-
Health, working closely with its eHealth
tion and monitoring errors dropped
Queensland division. Queensland
by 14%, a 33% reduction in drug
Health has developed a strategy for
dispensing and supply incidents, 17%
health ICT and eHealth that calls for an
fewer emergency readmissions with-
investment of more than $1.2bn over
in 28 days of discharge, drug costs
the next 20 years. That figures includes
per weighted activity unit came down
$730mn for clinical software such as
by 14%, stage 3 & 4 hospital-acquired
OCTOBER 2018
H E A LT H C A R E
“ Early in the process we decided it shouldn’t be entirely an IT project but more of a clinical change initiative” — Dr Stephen Ayre, CEO of Metro South Health
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M E T R O H E A LT H C A R E G R O U P
pressure injuries plummeted by 56%
view, and crucially that of the patients,
and healthcare associated infections
into consideration.
reduced by 37%. In the same period
The work he oversaw at PAH had
early identification of deteriorating
been started in 2014 and completed
patients went up by 59%.
over the subsequent 18 months. The experience gained there provided a
180
A clinical approach to IT
template for rolling out the programme
Leading the transformation was Dr
at the other facilities, culminating in
Stephen Ayre, executive director of
July 2018 with the completion of
PAH at the time and now Chief Execu-
digitisation at the Queen Elizabeth II
tive Officer of Metro South Health. Dr
Jubilee Hospital (QEII).
Ayre started his career at the sharp
Planning started in 2014 when the
end as a GP before moving into ad-
Department of Health switched to
ministration: he was therefore ideally
a ‘whole hospital approach’ from the
placed to take the clinicians’ point of
module-by-module process it had
OCTOBER 2018
H E A LT H C A R E
CLICK TO WATCH: THE PRINCESS ALEXANDRA HOSPITAL BECAME AUSTRALIA’S FIRST LARGE-SCALE DIGITAL HOSPITAL
$2.3bn Annual budget
2007
Year founded
14,000+ Approximate number of employees
previously utilised. Though the Cerner platform is a comprehensive and well-tested one, it took some work to adapt it to fit the culture and practices of Australia, says Dr Ayre: “Early in the process we decided it shouldn’t be entirely an IT project but more of a clinical change initiative. “We brought a number of internal clinicians and specialists onto the team – an endocrinologist and a cardiac surgeon for example, as well as nurses and technicians. Of course, all the technical and governance aspects of the Cerner implementation were addressed, but the front facing part of it was essentially clinical.” He has taken a lead on the involvement w w w.busi ne ssc hief. com
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M E T R O H E A LT H C A R E G R O U P
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H E A LT H C A R E
“ We came through a very careful engagement programme with the clinicians within the hospital so that everyone understood the process and its goals” — Dr Stephen Ayre, CEO of Metro South Health 183 of the clinical users of the system
to argue from entrenched positions,
throughout. “As chair of the state-wide
so Dr Ayre has done everything possible
clinical advisory group on the imple-
to encourage a holistic view. “We came
mentation not just at Metro South but
through a very careful engagement
all the other hospitals that are fol-
programme with the clinicians within the
lowing on, we have been keeping the
hospital so that everyone understood
clinicians aligned and focused. We
the process and its goals.”
are building an integrated solution
Resource fairs, he explains, gave
that reconciles the niche demands of
clinicians the opportunity to try out
specialists with the intricacies of the
the system and see how it integrated
IT system,” he says.
with the devices within the hospital such as ECG machines and the
Collaborative vision
anaesthetic equipment and various
It’s been hard work, one senses,
monitors. This helped identify pain
to overcome the tendency for each
points. A common problem when mov-
department, often each individual,
ing from standalone products to a w w w.busi ne ssc hief. com
M E T R O H E A LT H C A R E G R O U P
platform such as Cerner can be a perception that functionality is reduced, for example from the anaesthetist point of view. “In fact it allows people outside the theatre and the anaesthetic area to see what was happening with the patient. That continuity of care and management in the pre- and post-operative phase needs to be understood and worked through for the greater good of the patient,” he comments. The ieMR – which automatically uploads observations and vital signs from patient monitoring devices, allows efficient electronic 184
ordering of radiology and pathology tests, and provides decision support for clinicians in prescribing medicines – is the foundation technology, he explains. “Now that the patient records are integrated, all clinicians can view them – wherever they are in our organisation. There is no need for medical staff to travel to a ward to look at paper records: they can see very clearly what happened in the emergency department or in the theatre or in any other areas that a patient may be moved to during their inpatient journey. Even from one hospital to another since there are a number of hospitals throughout the state who now have ieMR.” Soon they all will. Meanwhile work has already started on rolling the system out into the community. General practitioners can get OCTOBER 2018
H E A LT H C A R E
access to certain components of the record such as pathology, radiology, medications, operative notes and discharge summaries using The Viewer. It is a function already accessible by every GP in Queensland. Software providers such as Medical Director and the pan-Australian My Health Record patient/doctor portal will increasingly be able to interface with the ieMR system to give the community better and faster access to their medical records. “We are very keen to provide access to information,” says Dr Ayre. “There is a whole range of patient-facing services you can update online like appointment checking and registration
“ We’re doing a lot of research around the implementation as well… I am keen to take every opportunity to share the learnings from our digital transformation” — Dr Stephen Ayre, CEO of Metro South Health
data. We are also interested in getting some of the community-based services onto the system.” In the coming year, with the inhouse implementation out of the way,
example of the type of service he’d like to see extended and enabled by the provision of ieMR.
he wants to focus on connecting care, across the five hospitals in the
Proving the project
system and out into the community.
Digitisation has improved efficiency,
Metro South Health’s Hospital in the
increased capacity without extra
Home service, which provides short-
resourcing, and enhanced patient
term home-based acute care in the
care. “I want to make sure that I can
homes of patients that formerly would
maximise these benefits while
have had to be hospitalised, is a good
decreasing the hospital complication, w w w.busi ne ssc hief. com
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M E T R O H E A LT H C A R E G R O U P
readmission and infection rates and
the University of Queensland Business
length of stay,” says Dr Ayre.
School with whom we have been work-
“At the same time, we’re doing a lot of
186
ing closely since the inception of this
research around the implementation
programme. I am keen to take every
as well. There really hasn’t been much
opportunity to share the learnings
validation of this type of implementa-
from our digital transformation.”
tion and I am pleased to say that we
The last four years have been a very
have just been awarded a collabora-
disruptive time for Metro South Health
tive research grant to work with the
but the outcome has been magnifi-
University of Queensland, Cerner and
cent. A complex IT and clinical change
Vancouver Health. And on the purely
project has been delivered in a very
business benefits we are working with
short space of time and thanks to the
“I’m lucky in that I have had a focused and balanced team, with health professionals working alongside IT specialists” — Dr Stephen Ayre, CEO of Metro South Health OCTOBER 2018
H E A LT H C A R E
scrutiny it is getting from researchers it
anced team, with health professionals
is sure to be a benchmark for future im-
working alongside IT specialists, some
plementations in Australia and beyond.
of them also with nursing or medical
“Speaking personally,” Dr Ayre reflects, “the biggest challenge for me
backgrounds. “I am very satisfied by what we have
as CEO has been to maintain business
achieved together and excited by the
as usual while so much of the energy of
prospect of maximising the benefits
the organisation has been focused on
from the implementation. My vision has
a single piece of work. Some change
always been that it’s producing really
management components have also
significant benefits to patient care –
been very taxing for our staff. I’m lucky
and that is what we are all about!”
in that I have had a focused and bal-
187
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