ASIA EDITION AUGUST 2018 asia.businesschief.com
BICS
Transforming connectivity
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Competitive, sustainable procurement
City Focus HANOI
Aflac Creating a cus t omer-led approach through innovation TELEKOM MALAYSIA REDEFINING SUPPLY CHAIN SUCCESS
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Regional Manager Business Development Tesla Energy Asia Pacific
Group Chief Executive Officer Sarawak Energy
KEN KOYAMA
Chief Economist & Managing Director, Institute of Energy Economics, Japan (IEEJ)
VENU NUGURI
Senior Group Vice President ABB Group’s Power Grids Division, South Asia, Middle East and Africa
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Chief Technology Officer Huawei Technologies Co., Ltd.
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FOREWORD
he ecosystem in Japan is developing quickly across the financial services industry,” says Aflac’s Chief Transformation Officer, John Moorefield. In Business Chief Asia’s August cover story, the insurance giant explains how its ‘customer first’ approach is driving growth across the fast-moving nation. We also spoke to Malcolm Chan, Managing Director of Asia Pacific at BICS. The global communications provider is making waves in the region, connecting an often diverse and complex landscape through technology. Chan discussed the challenges and opportunities that go with this. Elsewhere this month, Juvo’s Chief Data Officer Aristotle Socrates offers insight into the challenge of providing fintech for underbanked communities across the globe. For this month’s Top 10 article, we’ve taken a look at the ten most valuable CEOs in Asia, and our City Focus zones in on why the Vietnamese capital of Hanoi is one of Asia’s most fertile business environments. Be sure to take a look at our other company profiles on property and construction giant WT Partnership; Pan Pacific Hotels Group; Telekom Malaysia; education company Wall Street English; Takeda Pharmaceutical Company; and utilities firm Tenaga Nasional Berhad. Feedback is appreciated and you can find us across social media @Business_Chief – we hope you enjoy the issue!
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R E A D T H E L AT E S T I S S U E
CONTENTS
Digitising insurance for the future
10
32
42
expanding connectivity
across Asia
52
HANOI City Focus
64
CONTENTS
76 Wall Street English
92 106 Takeda
Telekom Malaysia
120 Tenaga Nasional Berhad
138 WT Partnership
160 Pan Pacific Hotels Group
10
Digitising insurance for the future WRITTEN BY
CATHERINE STURMAN PRODUCED BY
ALEX PAGE
AUGUST 2018
11
a s i a . b u s i n e s s c h i e f. c o m
AFLAC
Placed on Fortune magazine’s list of The World’s Most Admired Companies over 10 times, we find out how Aflac strives to soar above the competition
I 12
nternationally recognised by its famous icon, ‘the Aflac duck’, insurance giant Aflac has become a leader within US and Japanese markets. Delivering exceptional services and solutions with a ‘customer first’ approach, its growing Japanese customer base has presented a number of challenges, but unlocked new opportunities through digitisation. Although technology continues to disrupt the way in which customers access products and services, spanning both policyholders and agents, John Moorefield, Executive Vice President and Chief Transformation Officer, explains that the Japanese insurance industry has previously been less aggressive in the adoption of new technology. However, the country is undergoing a significant sea change. The changes in Japan are driven by evolving customer behaviours, but are consistent with changes that organisa-
AUGUST 2018
tions such as The Boston Consulting Group (BCG) and Accenture have monitored and analysed worldwide. Customers expect expanded and enhanced services to be included with the products they purchase, and the quality of these services is becoming as important as the products themselves. “The interest in fintech and in implementing new ways of delivering services to customers in the insurance industry is picking up in Japan at an accelerated
TECHNOLOGY
13
a s i a . b u s i n e s s c h i e f. c o m
AFLAC
rate. It’s not only creating a situation in which we’re catching up with the kind of services delivered in other regions, but we’re also, in some ways, getting ahead, because we’re just making a generational jump,” says Moorefield. Responsible for Aflac Japan’s information technology, policy services and security, as well as the company’s transformation at Aflac Japan, Moorefield, along with other leaders, ensures that the 16
company’s customer first approach will remain the key driver as it broadens its product line. “We are ensuring that our priorities are driven by what the customer wants. From that perspective, we are working extremely hard to not only be the most innovative in terms of insurance products for our customers, but to also be the leader in technology deployment to accelerate customer service,” he says. “This encompasses the turnaround time for requests and the usability of our applications. This ensures customers are satisfied AUGUST 2018
TECHNOLOGY
BIO
John Moorefield Executive Vice President and Chief Transformation Officer  — John A. Moorefield, executive vice president and chief transformation officer is responsible Information Technology, Policy Services, Information Security and Transformation for Aflac Japan. Mr. Moorefield joined Aflac in 2005 and has held several key positions, including chief information officer of Aflac Japan. Prior to joining Aflac, he served as a principal in ApproxiCom, LLC and held leadership positions at Cap Gemini Ernst & Young LLP, Fidelity Investments and NationsBank. He was promoted to his current position in January 2017.
a s i a . b u s i n e s s c h i e f. c o m
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The Digital Future Is Now The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highestvalue opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with offices in more than 90 cities in 50 countries.
For more information, please visit the website: HTTPS://WWW.BCG.COM/DIGITAL-BCG/OVERVIEW.ASPX
BCG’S PERSPECTIVE ON DIGITAL TRANSFORMATION When it comes to the digital transformation of business, the future is now. Companies worldwide are using digital technologies and advanced analytics to unlock new sources of economic value and achieve step-function improvements in productivity, flexibility, and speed in business and in IT.
WHERE DO WE START? BCG’s “Digital Acceleration Index (DAI)” measures the degree of digital maturity and a global study based on DAI shows that digital maturity drives superior performance. The Digital Acceleration Index helps organizations assess their digital maturity—that is, uncover their digital strengths and weaknesses, determine whether their digital capabilities are lacking or imbalanced, and evaluate how well they perform against peers in digital efforts. Our global study shows that increased levels of digital maturity significantly improved competitive advantage in multiple areas, such as time-to-market, cost efficiency, product quality, and customer satisfaction.
(technology in the industrial production processes of physical goods), and enterprise (infrastructure, platforms and standard software packages). Companies will increasingly build internal capabilities and focus resources on product and service technologies and production technologies for competitive advantage. For example, autonomous cars use a variety of product and service technologies—including, radar, lasers, GPS, odometry, and computer vision—to detect and interpret their surroundings. They also include apps that link the customer to the OEM. Meanwhile, companies will devote fewer internal resources to enterprise infrastructure, opting instead for cloud-based utilities. Not only does getting the digital transformation right improve a company’s operations, but it can also boost valuations. According to our research, traditional assetheavy companies often trade at low multiples, even below annual revenues, while pure digital companies typically trade at multiples that are several times that of revenues.
INITIATIVES CREATING THE TECH FUNCTION OF THE FUTURE
Digital strategy and digital transformation are top priorities for CEOs around the world, but a fundamental question remains: How do we make these happen? BCG has found that the most successful companies excel at Speed, Scale, and Value—in parallel. That is, they determine: How can we move at digital speed? How can we change the way we work across the entire enterprise? How can we create tangible value for the business—and for customers?
1. Develop product and service technologies close to the business. With fewer internal resources devoted to enterprise technologies and technologies that are more integrated into the business units, leaders can turbocharge product and service technologies. Small teams can focus on working closely with product managers and customers on new products and services, speeding up iterations and time to market.
TRANSFORMING IT TO TECH TO ENSURE DELIVERY
2. Integrate technology and the business. Today’s silo-like IT function needs to be transformed into an embedded and integrated business technology structure. In practice, this means that leaders need to create collocated, cross-functional teams for agile development and effective collaboration of business and technology resources.
There is a strange dynamic at play at many traditional companies: technology is increasingly important, yet in many cases, the IT function is not involved in the development of the new, differentiating products and services aimed at ever more discerning and empowered customers. IT transformation is part of a larger need to digitize businesses: the vast majority of companies are, or are becoming, technology companies—at least to a certain degree. Soon, technology will be embedded in nearly every product, service, and process, all of which will be integrated into a broader digital ecosystem. Powerful software will be the backbone of products, services, and customer engagement. Data is already a highly valuable asset for every company, and the ability to analyze and act on that data is at the core of a company’s competitive advantage. To handle the digital shift, companies must bring business and technology together. More specifically, they must rethink how they manage three categories of technology: product and service (technology embedded in end products and technology that embeds end products into digital ecosystems and customer interfaces), production
3. Build software engineering capabilities as a critical differentiator. We have seen large incumbent companies staffing more than 75% of IT roles with generalists. Leaders need to make significant changes to this skill mix, moving the organization toward specialized engineering and analytical skills to develop products and services. 4. Ensure powerful governance and steering capabilities. In the future, business units will all have their own capabilities for developing products and services, so strict rules and regulations will be necessary. Leaders will need to ensure a strong governance and steering function to coordinate certain areas such as vendor management; ensure that standards are met in various areas including cybersecurity, data, and application architecture; and avoid unexpected side effects such as heavy loads affecting specific parts of the infrastructure.
TECHNOLOGY
“ We are working extremely hard to not only be the most innovative in terms of insurance products for our customers, but to also be the leader in technology deployment to accelerate customer service” — with our service without having
John Moorefield,
to go through multiple steps of
Executive Vice President and
contact.”
Chief Transformation Officer
21
In order to support these applications and provide new services, Aflac and other organisations in Japan rely on
and adapt accordingly using both top local
companies providing and
talent and off-shore delivery centres.
enhancing core IT functions such
Across its entire portfolio, Aflac has also
as infrastructure operations, sys-
invested in a number of cloud platforms,
tem development and
including those provided by IBM, SalesForce
communications. Some of the
and ServiceNow, to support its distribution
market leaders in these areas are
system, and introduced several payment
NTT Communications, Pactera
methodologies which will take advantage of
and NTT Data, which are demon-
new services in the Japanese market.
strating their ability to understand new expectations
“This allows us to pay claims and reimburse our customers for certain transactions a s i a . b u s i n e s s c h i e f. c o m
AFLAC
22
AUGUST 2018
TECHNOLOGY
via ATMs. ATMs in Japan are not just cash machines, but provide many services. Being able to take advantage of that provides convenience for our customers,” explains Moorefield. “Leveraging new payment strategies that banks are developing allows us to provide instant payments to customers, without waiting for a night-time batch routine from a bank. We’ll be able to pay customer claims almost immediately in certain cases. These are the kinds of things we are able to take advantage of because the ecosystem in Japan is developing quickly across the financial services industry.”
CUSTOMER-FIRST From its innovative product offerings, to being awarded the Computerworld Smithsonian Award for Excellence in Technology, Aflac has always sought to look at customer data and related pain points to prioritise and transform the customer experience through an Agile methodology. a s i a . b u s i n e s s c h i e f. c o m
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TECHNOLOGY
“We use customer feedback based
FACT
on what we have developed to constantly iterate and update applications, and to develop new products for what customers want to see from an insurance product perspective,” notes Moorefield. “We determine the gaps which are not met in the marketplace, particularly for the younger generation of customers. Two years ago, we launched a new product line for income protection in the case of short-
Aflac was one of the first companies to contribute more than $1mn to the Red Cross for Tsunami relief in Japan in 2011
term illnesses, driven mainly by the needs of the 20-30-year-old customer
25
group which has not been our base
a policyholder can complete online ver-
customer group.”
sus using the call centre. Our
With a need to appeal to all demo-
mobile-first push is fairly aggressive in
graphics, Aflac has sought to overhaul
terms of ensuring that as many ser-
the way in which customers interact
vices as possible are pushed to the
with the organisation – from visiting an
smartphone or to a mobile tablet to
agent, to choosing a web or mobile
deliver services to customers.
application, Moorefield has worked to
“The reality is that we’re going to
completely enhance and expand the
have to figure out how to deliver all ser-
business’s platforms.
vices to all age groups.”
“We were the first in Japan, in our
As Aflac works to meet this chal-
part of the industry, to allow online
lenge, partners are a vital source of
claim submissions, and we’re expand-
knowledge and experience for the pro-
ing that to cover as many claim types
motion and enhancement of
as feasible on that platform,” he says.
digitalisation initiatives. Accenture and
“We are expanding the services that
BCG, for example, do this by proactively a s i a . b u s i n e s s c h i e f. c o m
AFLAC
TECHNOLOGY
“ The ecosystem in Japan is developing quickly across the financial services industry” — John Moorefield, Executive Vice President and Chief Transformation Officer 27
proposing new services as part of regular interactions and information sessions.
tion of Japan. Since 2012, it has built on its commitment to supporting the Aflac Cancer Center, and invites young
COMPANY PRIDE
patients to design the Aflac Holiday
Whilst Aflac remains committed to
Duck, which is then sold in Macy’s
its core values, it also places signifi-
stores across the US. All profits go
cant investment in a number of
toward new treatment programmes.
philanthropic causes.
Additionally, Aflac was one of the
In the 1990s, the company
first companies to contribute more
pledged $3mn to establish Chil-
than $1mn to the Red Cross for Tsu-
dren’s Healthcare of Atlanta and
nami relief in Japan in 2011.
built the first Aflac Parents House,
“Tsunami relief is just one exam-
which is now owned and operated
ple,” reflects Moorefield. “We’re very
by the Children’s Cancer Associa-
committed to children’s cancer and a s i a . b u s i n e s s c h i e f. c o m
AFLAC
cancer research, that’s just a core value to us. With a long-term goal to support the policyholder with great insurance products and technology, Aflac will continue to make advancements to remain a technology leader. “Aflac has a spirit, and I’m very proud to be part of an organisation whose core philosophy is to be there at the time of need for the policyholder,” states Moorefield. “Our focus is on how to quickly and efficiently pay claims, to get money in the hands of the policyholder at their time of need, and we really have a commitment and the spirit to do that. It removes stress, helps the policyholder recover, 28
and that’s a meaningful thing to me.” Although change can be particularly difficult to undertake in Japan, especially with a focus on quality and perfection, Moorefield is eager to take on the challenge. “At the end of the day, when we do something, we do it right,” he concludes. “It has a significant impact due to the large size of the company and that’s very gratifying, I truly love what I’m doing.”
AUGUST 2018
TECHNOLOGY
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a s i a . b u s i n e s s c h i e f. c o m
LEADERSHIP
32
expanding conne WRITTEN BY
AUGUST 2018
ANDREW WOODS
a
ectivity
across Asia
33
Malcolm Chan, Managing Director of Asia-Pacific at global communications provider BICS, tells Business Chief about the challenges involved in digital networks across the region and what BICS is doing to solve them
a s i a . b u s i n e s s c h i e f. c o m
LEADERSHIP
M
34
ultinational communications enabler BICS is a key global voice carrier and the leading provider of mobile data services worldwide ranging from mobile connectivity, seamless roaming experiences, fraud prevention and authentication, to global messaging and the Internet of Things (IoT). Tasked with keeping the vast and culturally-disparate continent of Asia connected with the most powerful communication networks is Malcolm Chan, Managing Director of Asia-Pacific. BICS reported a sharp increase in LTE (Long-Term Evolution, the standard for high-speed wireless communication) roaming traffic in the Asia-Pacific region this year, which is being largely driven by Europe. In Q1 2018, Europe overtook the Middle East as the top destination for outgoing roamers from Asia-Pacific using LTE services, accounting for around 54% of outbound LTE roaming traffic. Tourists and business travellers visiting the AUGUST 2018
region from Europe, in turn, accounted for the highest number of inbound roamers (57%). During 2017, LTE roaming traffic in the region grew three-fold, with recent data suggesting that growth is set to continue in 2018. Last year LTE calls made between countries within AsiaPacific accounted for 30% of international LTE traffic in the region, reflecting an increase in LTE data roaming globally. In January, BICS reported that global LTE roaming traffic more than doubled in 2017, with Europe experiencing a 600-800% increase in traffic during the summer months, this surge driven in part by the EU’s regulation on wholesale roaming charges which came into effect in June 2017. SECURITY ON THE MOVE
“Asia is unique,” Chan explains. “It's very diverse, and not just in terms of spoken language. A lot of what we do is enabling roaming and the correct security for people on the move across the
35
Malcolm Chan, Managing Director of Asia-Pacific BICS
a s i a . b u s i n e s s c h i e f. c o m
LEADERSHIP
region by localising the engage-
phone, you like to know it's
ment, when it's crucial. We also
secure, that there is some real
provide different sample rights,
privacy and some degree of
for getting a PIN off your phone
authentication. We work at a high
for example, where we can
level with the developers of the
authenticate if you're a natural
apps, so that when a customer
user. We're also able to provide
uses an app, or when a customer
authentication through an aux
does an online transaction over
cord, which not many people
the phone, there’s a level of secu-
are doing today.”
rity that's expected,” says Chan.
China, with 1bn 4G connec-
36
When you roam, you need even
tions accounting for 40.2% of all
more assurance that security
global LTE connections, spear-
standards are being met. With
heads this growth, but other
a vast network of countries in
markets such as Australia, South
Asia where English is not the
Korea, Japan, Malaysia, Indone-
first language, BICS is able to
sia, Myanmar, the Philippines and
provide English language as
India are also seeing accelerat-
well as localised services to its
ing migration to 4G. The GSMA
customers. BICS has operations
estimates that mobile data
in Korea, Malaysia, China, and
growth will be the driving force
further afield in Australia. “We
behind future revenues and oper-
can talk in and understand your
ator investment in the region.
language. We understand your
“What's really driving our
customers. The customer
industry right now is security.
experience is very important
When you download onto your
for us,” says Chan.
AUGUST 2018
“ When you download onto your phone, you like to know it’s secure, that there is some real privacy and some degree of authentication” — Malcolm Chan, Managing Director of Asia-Pacific BICS A VAST REGION
As well as security, BICS can offer users a consistent experience and smooth transition despite cultural variations in the digital sphere. “To use Google Maps and Gmail or update your Facebook app is difficult in a place like China where you cannot access Google or Facebook. In addition, many of our Chinese customers are asking, ‘How do I bridge that gap if I’m holiday in Europe? How do I enable that service?’ In terms of the service we provide, an important aspect is that we bridge that gap. “Our traffic is growing as much as threefold every year. But things will change as we lead on into 5G, which in a sense is still in its infancy. We are already helping a handful of customers to enable what we call 5G roaming.” BICS has a global network that connects all of these individual network relays across each country. “Because we ourselves run that network, we can provide a couple of things. First, it's not political, which means we actua s i a . b u s i n e s s c h i e f. c o m
37
LEADERSHIP
ally monitor and manage the speed and latency across all these networks on our own. We are our own organisers, which works very well for us and I think differentiates us from many other providers on the market. The other aspect is distance. Because of what I call our ability to aggregate this information, about what people like doing on their phones, what types of apps they are accessing, where they are, and at what time are they doing this – we can provide analytics. Increasingly, it's about translating information and data, how we can help customers and occupants monetise.” 38
As we know, Asia is a diverse and rapidly changing territory, so what are the geographical breakdowns when it comes to digital? “Although we are a small organisation here in Asia, out of the 20 people we have here, they are 16 nationalities. It's something we’re very proud of, because we believe in diversity. Every country has its peculiarities. So, in terms of knowing our customers and the cultures we deal with, we are able to speak the language of the home countries.” “When talking about production of digital services, China, Hong Kong, Singapore, Australia and parts of Korea are ahead of the curve. China and India collectively make up 2.7bn people – that’s 36% of the world’s popAUGUST 2018
ulation in just two countries. In both of these countries, the middle class is growing which means an incline in digital services. “These are regions that are full of opportunity. China is a huge and fast-growing market and we believe in being close to our customers in the region. So, we are already operating for our customers in these countries. What we do, is we take that experience, and we share pure knowledge and mental property and bring it back to other countries which are a little behind the curve. By that, I'm talking about Indonesia, Bangladesh, Sri Lanka, and to some extent India. And with the right investment, and the right strategies, digital is sure to fly in those regions too.”
“Of the 20 people we have here, there are 16 nationalities. It’s something we’re very proud of, because we believe in diversity” — Malcolm Chan, Managing Director of Asia-Pacific BICS
a s i a . b u s i n e s s c h i e f. c o m
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TECHNOLOGY
42
Mobile tech for the
underban
AUGUST 2018
Juvo aims to offer financial inclusion for all by creating financial identities and credit history for those in underbanked communities. This has been made possible by the growth of mobile, as Business Chief found out
nked
43
WRITTEN BY
OLIVIA MINNOCK
a s i a . b u s i n e s s c h i e f. c o m
TECHNOLOGY
I
n an increasingly digitalised world, a huge proportion of the global population still lacks access to proper banking facilities.
Without the benefit of plastic or mobile apps, building up a digital identity and credit history can be near impossible. “Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded,” explains Aristotle Socrates, Chief Data Officer. “We partner with mobile network operators to reach these billions of people – many of whom are in cash-based economies.” Juvo combines consumer internet, predictive
44
algorithms and modern mechanics to implement a data-science based ‘Identity Scoring’ system to augment a credit score, which would otherwise be decided from the top down, but instead is made via pre or post mobile payments, i.e. from the bottom up. Essentially, Juvo allows people without a credit score to build up a credit history, reaching towards its goal to ‘empower the billions of unbanked people in the world to create financial identities and access financial services’. The company’s Identity Scoring service uses a combination of data science, machine learning and mechanics to create identities for those who don’t have a credit history through prepaid mobile accounts, allowing users to build up an identity and use banking options they may not have had before. The company was founded in 2014 and AUGUST 2018
launched its service publicly in 2016, having since grown from 100mn to 500mn users. The company now employs 70 people and has enabled over 400mn transactions to date, boasting 1mn active subscribers per day. Juvo operates across 25 countries in North and South America, Europe and Asia, working with partners that include Sprint, Telefonica and Deutsche Telekom. “We give consumers the choice, effectively, of being a post-paid user vs a pre-paid user. We save people trips to the top-up station, which saves them time. I think every human being in the world understands the value of time,” Socrates explains.
45
From astrophysics to fintech Socrates trained as a theoretical astrophysicist but is now becoming more of a technologist. “My general approach to tackling quantitative problems remains strongly informed by my past life as an astrophysicist.” He moved further into the tech space in 2015 when he joined Juvo as Chief Data Scientist. “The field of data science was heating up, and it seemed like a promising place to explore and come up with interesting ideas. After speaking with founder Steve Polsky, I thought Juvo was the best idea I had ever heard, at least in Silicon Valley.” Socrates describes the move as a risk, since Juvo was then just a startup with 10 employees but adds that this was actually a s i a . b u s i n e s s c h i e f. c o m
TECHNOLOGY
a selling point. “I was driven by the idea itself, and the opportunity of being able to create something significant from scratch.” It is clear the data scientist strongly believes in Juvo’s central mission to develop financial service access to the 3bn people in the world who are underbanked. “The only way to accelerate the placement of those people into a modern financial system is by building a credit or financial knowledge base atop of, and across, multiple 46
operators. And that’s effectively what we’re doing.”
Data Science in finance In his role as Chief Data Scientist,
having people with some form of scientific experi-
Socrates has a wide scope of
ence of training – from either academia or a tech
responsibilities. “The term ‘data
company – gives an additional boost in capacity
scientist’ is a bit funny since there’s
in various areas of work and ideation.”
no science without data,” he muses.
Socrates adds that while many companies use
“Data Science means different
data science to support other departments
things at different companies.”
through creating algorithms, Juvo is different. “At
However, Socrates is keenly aware
Juvo, our Data Science function is a lot broader,
that the importance of data scientist
which is understandable given our mission. In
is becoming increasing recognised
addition to our core function, we do some
by many businesses, particularly at
engineering, product management, partnership
a time of rapid digitisation. “Every-
management and even sales and business
one seems to be discovering that
development,” he explains.
AUGUST 2018
“ Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded” — Aristotle Socrates, Director of Data Science, Juvo
Mission possible?
the ability generate huge meaningful amounts of
In order to allow users to build up a
transaction data. However, they are limited in
financial identity via mobile, it has
their ability to act on it. This requires data science
been necessary to partner with
to play an organisational role that is relatively
some of the largest telecoms
expansive on the organisational spectrum.” Juvo
carriers in emerging markets. “Our
will further utilise these carriers to build on its
mission is to create a mechanism for
impressive number of subscribers for the future.
generating credit by establishing
“The path is, in my view, quite clear: integrate with
meaningful financial identities for
more mobile network providers!”
mobile phone users in the develop-
Juvo builds up its financial profiles by offering
ing world. That’s a big, difficult and
gradually larger loans. “It’s interesting to
broad problem. Our general line of
understand why mobile network operators don’t
attack is through carriers who have
do this in the same way we do – the simple a s i a . b u s i n e s s c h i e f. c o m
47
TECHNOLOGY
answer is risk,” Socrates explains. “We end up taking a tremendous amount of risk on the path of building a credit history for users, at scale. All mobile operators offer small emergency loans, which might cover a single phone call for example, but at Juvo we offer a whole month’s worth of service per loan. Our Data Team was compelled to take this risk to help fulfil the vision and mission of our company: to build meaningful credit. “We really didn’t understand how radical our loan sizes were until well after we’d been offering them for many years,” Socrates admits. “We 48
figured out how to manage this risk after the fact. In the beginning, you’re just trying to make things work!” Juvo’s goal for the future is to expand its service to help financial service providers. “We want to create a financial platform that allows financial service providers to gain access to the transaction histories that we’re building on top of mobile network operators. As I see the problem, the reason the underbanked are underbanked is that in their locale, the data infrastructure required to connect transaction history to capital, is non-existent or seriously inadequate. Right now, we’re working towards constructing a platform that allows end-users and financial institutions to bridge that gap.”
AUGUST 2018
“ We save people trips to the top-up station, which saves them time. I think every human being in the world understands the value of time” — Aristotle Socrates, Director of Data Science, Juvo
49
a s i a . b u s i n e s s c h i e f. c o m
CITY FOCUS
City Focus
52
HANOI AUGUST 2018
I
FS EE AT CU TO RR E
ÂŁ1.5bn Approximate revenue
2002
Year founded
1,800 Approximate number of employees
BIO
Jon Grainger joined Freshfields as Global Head of Service & Transformation in February 2017, before assuming the role of CIO in December last year following a month of servitude as interim CIO. Before this Grainger spent seven years at Capgemini as Vice President & Programme Director, responsible for leading IT transformation programmes, content development strategies, innovation and research as well key operational functions. Grainger has also spent time with Fujitsu, Deloitte, and Accenture. Between 2013 and 2015, Grainger attained a Master of Business Administration (MBA) at the University of Warwick, through Warwick Business School. He is also a holder of a degree in computer science.
With a highly-skilled population and burgeoning technology sector, Hanoi is growing into one of Asia’s most fertile business environments EDITED BY
BEN MOUNCER
a s i a . b u s i n e s s c h i e f. c o m
53
CITY FOCUS | HANOI
W
ith a population approaching 8mn, a strong but stable level of growth and
policies that promote business and infrastructure, Hanoi is becoming the next hot international business centre. As a strong contender in the world’s 20 largest cities, Hanoi’s growing technology industry, solid marriage of innovation and development and range of business opportunities make it a great place to base a business. As one of Viet54
nam’s best-kept secrets, Hanoi’s metropolitan area is projected to have a population topping 15mn by 2020, with many highly-skilled citizens seeking employment. Hanoi has seen constant growth approaching 8.8%, with significant investment in skyscrapers, business centres and infrastructure to support this growth. Partially responsible for this growth is the regular reform of administrative measures, improvements for investment opportunities, and development of government policies to help struggling entrepreneurs.
AUGUST 2018
Easygoing city life What can you expect in a city that is over 1,000 years old? An interesting mix of tradition, culture and new technology. One of the biggest draws for business and IT professionals to Hanoi is its low cost of living. A resident can grab a pint at the corner bar for under $1 USD, an inexpensive meal for under $2 USD, and pay utilities, including broadband internet, for about $60 USD for an 85 square meter apartment. Yet at the same time, the city has the highest Human Development Index in Vietnam, which looks at income, life expectancy and education. To get a better feel for the local vibe, Hanoi’s Old Quarter has examples of traditional architecture, beautiful lakes abound in the region and its many museums and French colonial structures have given the city the moniker of “Paris of the East”. Over the past five years, it’s been consistently among the top 10 travel destinations worldwide. Shopping, art, cuisine and the theatre are all just a short cab or bike ride away, as are a number of art galleries that have sprung up around the city. a s i a . b u s i n e s s c h i e f. c o m
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CITY FOCUS | HANOI
56
AUGUST 2018
Change in the weather Recently, up to three-quarters of the population of Hanoi were employed in state-owned industries, with an additional 9% in collectively-owned enterprises and another 13.3% in private enterprise. However, this balance is quickly shifting as the government is downsizing and private enterprise growing. The city has been experiencing a strong boom in industrial production and exported goods to other countries, with these two facets of the economy contributing significantly to the national GDP and experiencing growth of 10-20% annually on average. The city’s eight industrial parks are being supplemented by an additional five large-scale parks and 16 small and medium industrial clusters. Following inconsistent growth in the 1980s and 1990s, Vietnam has invested heavily in the development of its infrastructure, industry, and technology. Combined with Hanoi’s regional focus on growth, planning, and real estate development, this has created a unique environment where professionals can enjoy the combination of a lower cost of living and exceptional business and investment opportunities. However, with the expected growth over the next few years, smart investors will look at real estate sooner rather than later to enjoy the best return on investment. a s i a . b u s i n e s s c h i e f. c o m
57
CITY FOCUS | HANOI
58
AUGUST 2018
As one of Vietnam’s largest IT
Tech is on the up in Hanoi
service companies, FPT is the
The FPT Group isn’t the only
third-largest business in the
flourishing telecom business
country and has ties to Intel
in Hanoi; in fact, the city is
and Microsoft.
considered by many to have a
FPT Group
It has a presence in over 20
better tech industry than the
countries worldwide, including
more populous Ho Chi Minh
eight subsidiaries and two
City. Appota Corporation is a
associates. Its focus on soft-
mobile app development
ware development, system
company focused on games,
integration and IT services
advertisement, and pay-
gives it a solid base for future
ments, which has gone
growth through digitisation and
through three separate suc-
disruption in the market. Its
cessful funding rounds.
position places it at the top for
Gmobile provides mobile net-
IT services and in the second
work services in the top five
position for broadband ser-
service providers, including
vices in Vietnam, and it’s rated
Hanoi-based Viettel, Viet-
as a top-100 global service pro-
nam’s state-owned telecom
vider by the association IAOP.
that is the largest in the country.
a s i a . b u s i n e s s c h i e f. c o m
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CITY FOCUS | HANOI
Hanoi’s business scene Transportation in and around Hanoi is fairly simple and doesn’t require much driving. The low cost of living means it’s very inexpensive to hop on a bus or take a taxi wherever you need to go within the city, with a metro rail system currently under construction. A novel option for getting around troublesome traffic jams is the “xe ôm”, or hug 60
bike, grabbing a quick ride from a local motorcyclist. When it’s time to visit other cities, the new international terminal is only 15 km north of the city, and the Vietnam Railways system makes short jaunts easier. Hanoi has a wide range of hotels to make business travel or long-term business stays more comfortable. The city’s many delights wait to be discovered by curious professionals who are eager to experience all that Hanoi has to offer. AUGUST 2018
Currency
Dong 1945
Year of independance
7.5mn Population
Nearest airport
35km
Noi Bai International Airport
a s i a . b u s i n e s s c h i e f. c o m
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T
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64
AUGUST 2018
CEOs in
Asia
Business Chief profiles the top business leaders in Asia, ranked by Forbes in order of CEO net worth at the end of 2017 E DI T E D BY
B E N M OU NCE R
a s i a . b u s i n e s s c h i e f. c o m
65
T O P 10
Dilip Shanghvi
CEO, Sun Pharmaceuticals The net worth of Shanghvi was also reduced from $16.4bn to $11.8bn, but his personal ranking is still noteworthy. He founded the company in 1983 with an initial investment of $1,000. Today, Sun Pharmaceuticals employs more than 17,500 people across the globe, with annual revenues upwards of $4.5bn. The 61-year-old briefly held the status of richest man in India in 2015. 66
Lei Jun
CEO, Xiaomi The company chaired by the 44-yearold who co-founded it in 2010 is now the fifth-largest smartphone supplier on the planet and a tech giant in China. Lei stepped down from Kingscroft, the Chinese software company that he took public in 2007, to found Xiaomi, and also added to his fortune as a venture capitalist. In 2016, his net worth was reported to be more than $14bn but Forbes downgraded his status to $6.8bn in October 2017. AUGUST 2018
Azim Premji
Chairman, Wipro Ltd Azim Premji now runs Wipro Ltd., the huge global IT service provider that employs 160,000 people. He is listed as the second-richest man in India. Wipro Ltd. offers engineering, maintenance, analytics, databases and third-party services and products to customers throughout the world. The company shows revenues of $8.47bn, and Premji, who is now 81, boasts a personal worth of $19bn.
Alwaleed bin Talal bin Abdul Aziz al Saud The Saudi Arabian prince made his fortune by investing the inheritance that came from his grandfather, the first ruler of Saudi Arabia. He is the only one of the ten richest men in Asia to not be affiliated with a single company; his holdings include real estate, education and entertainment, specifically Twitter, Four Seasons Hotels, Time Warner and Lyft, the Uber competitor. His net worth is calculated at $22.5bn.
a s i a . b u s i n e s s c h i e f. c o m
67
T O P 10
Wang Jianlin
Owner, Dalian Wanda Group Dalian Wanda Group is the largest commercial property firm in China. The 62-year-old entrepreneur, however, is branching out. He recently bought Legendary Entertainment and has begun construction of a building in Chicago that will reportedly cost $900mn. Wang, with a personal net worth of $29.7bn, was the recipient of the Malcolm S. Forbes Lifetime Achievement Award in
68
2016, the first mainland China busi-
Lee Shau Kee
Owner, Henderson Land Development Founded in 1973, Henderson Land Development is based in Hong Kong and holds shares of Towngas and Hong Kong Ferry. The 88-year-old Lee built his fortune in real estate, and his company shows earnings of $3.6bn, with total employment numbering more than 7,700. Lee himself is worth approximately $29.4bn, up nearly $11bn from a comparable Business Insider 2016 listing. AUGUST 2018
nessman to claim such recognition.
69
a s i a . b u s i n e s s c h i e f. c o m
T O P 10
24 – 26 September 2018 Suntec Convention Centre, Singapore www.terrapinn.com/subnets
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Erick Contag
Mike Constable
Executive Chairman GlobeNet
Chief Executive Officer Huawei Marine Networks
Dave Crowley
Mohamed Nasr
Brett Lay
Chief Technical Advisor Microsoft
AVP – EMEA Cable Development PCCW Global
Chief Financial Officer RTI Connectivity
Chief Executive Officer Aqua Comms
Bruce Neilson-Watts
70
Global Optical Architect Facebook
Linette Lee Chairperson, SJC2 consortium & Director, Submarine Cable Investment Singtel
Larry Schwartz Chief Executive Officer Seaborn Networks
Nanang Hendarno Chief Technology Officer TELIN
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Mukesh Ambani Chairman, Reliance Industries
As the head of a petrochemical company that he took over from his father in 2002, Ambani can boast a number of records. For a brief period in 2017, he surpassed Bill Gates as the world’s richest man. The 59-year-old also claims
Li Ka-shing
Chairman, CK Hutchinson Holdings
title to the world’s most expensive home; his 27-story Mumbai mansion cost $1bn to construct. His oil and gas company also added more than $15bn
The owner of CK Hutchinson Holdings,
to his personal wealth last year, bringing
with a reputed worth of $34.5bn, Li Ka-
it to $38.9bn, an increase of 67%.
shing followed a varied path to secure his fortune. The Hong Kong-based company deals with port operations as well as retail, energy, infrastructure and financial business. With employees upwards of 188,000, the 88-year-old businessman announced in 2017 that he was forming a partnership with another top Asian business leader, Jack Ma of Alibaba, to introduce a digital wallet service in Hong Kong. His current ranking has risen dramatically from a reported 2016 figure of $19.5bn.
a s i a . b u s i n e s s c h i e f. c o m
71
T O P 10
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Jack Ma
CEO, Alibaba Both the man and the company are legends, and the story just continues to grow, as does Jack Ma’s net worth, Alibaba and its associated enterprises. The 52-year-old founded China Yellow Pages in 1988, before beginning Alibaba in 1991. Today, the company is among the largest e-commerce businesses in the world, with tentacles that spread from China to Mexico and beyond, encompassing numerous subsidiaries and offshoots. Alibaba has earmarked $15bn for its new Academy of Discovery, Adventure, Momentum and Outlook. As chairman, Ma’s worth sits at $59bn. AUGUST 2018
01
Ma Huateng CEO, Tencent
Topping the list with a personal net worth of $59.8bn, this CEO is one of the youngest of the group. Tencent Holdings is ranked as one of the ten most valuable companies in the world, with media and entertainment services, e-payment systems, and a host of subsidiaries to offer value-added services for smartphones and other media
73
across China. Tencent own the Chinese webchat service WeChat, home to more than a billion users. The company posts revenues of $3.28bn and employs approximately 40,700 people. Ma also is a stakeholder in GluMobile and 58.co
Image: Reuters
a s i a . b u s i n e s s c h i e f. c o m
We see something. Amid the streams of ones and zeros, we see a world where oceans of data yield sparks of insight and unending questions are being answered. A world where every space is intelligent and each connection is seamless. Where cutting-edge computing has the power to carry mankind to new planets, and faster data analysis accelerates the race for a cure. Where solutions come before problems arise and physicists have the power to map the universe’s origins. We see a world where Everything Computes, and what’s next is extraordinary. ©Copyright 2017 Hewlett Packard Enterprise Development LP.
See it all at hpe.com
WA L L ST R E E T E N G L I S H
76
A WORLDCLASS ENGLISH EDUCATION, ENABLED BY IT WRITTEN BY LAURA MULLAN PRODUCED BY MIKE SADR
AUGUST 2018
TECHNOLOGY
77
As one of the world’s most learned and spoken foreign languages in the world, English classes are in high-demand. By cutting through the noise with its innovative digital strategy, Wall Street English is delivering an education like no other
w w w. b u s i n e s s c h i e f. c o m
WA L L ST R E E T E N G L I S H
E
nglish is the most widely used language worldwide, with approximately 1.5bn speakers around
the globe. The biggest market for learning a language is English, valued at over $50bn in annual revenues. Whether learning for travel, business or for socialising with friends and family, many people around the world have decided to learn English as an additional language. This is where Wall Street English can support. With over 400 centres in 28 territories as well as a cutting-edge digital platform, the firm is one of the global leaders in adult Eng78
lish education. “We’re focused on changing futures,” explains Michael Garcia, Chief Technology Officer. “As a premium offering, we emphasise the world-class service we offer and the support our students receive throughout their whole learning journey.” With new grammar, rules, and accents, learning English can be challenging but Wall Street English believes it has perfected the right method of teaching through what is known as ‘blended learning’. Combining online and digital media with traditional classroom methods, blended learning has become a tried-and-tested model in the education sector. Garcia says that this modern take on learnAUGUST 2018
“ We take pride in offering the most supportive training in the market. It’s the way that we teach and the blended method, powered by technology, that really makes our programme work” — Michael Garcia, Chief Technology Officer
TECHNOLOGY
79
ing is what distinguishes Wall Street
$20mn to greatly enhance the learning
English from its competitors today.
experience. The feedback we received
“We use digital, visual tools that help
from our students has been really posi-
to introduce new concepts for our Eng-
tive – they feel that the product is
lish learners. Then we reinforce those
innovative, intuitive, and fun.
lessons with face-to-face encounters with a teacher,” he says. “We never use technology for tech-
“Service and support are a huge differentiator for us,” he adds. “We don’t just take on a new student and leave
nology’s sake. For us, it’s about
them alone. Complementary classes
applying technology that is fit-for-pur-
and teachers that you can connect with
pose to maximise the learning
at our centres or through online com-
experience. Our digital learning plat-
munities make sure that students have
form is a good example of this, which is
the support they need to meet their
why a few years ago we invested about
objectives. We take pride in offering a s i a . b u s i n e s s c h i e f. c o m
stream
About us Slipstream is a hi-tech company based in Shanghai, China, delivering Salesforce consulting and implementation services to customers all over the world. Slipstream is Salesforce certified consulting partner. It helps you leverage best in class cloud-based Salesforce CRM solutions to successfully navigate through the digital transformation. With the power of real-time business insights in hand, Slipstream helps you unlock new business opportunities and deliver an unparalleled customer experience.
Making Technology Easy
Why Slipstreamďź&#x; Slipstream boasts 40+ Salesforce certified consultants and has successfully delivered many Salesforce implementation projects, with rich experience in diverse industries, especially in education, pharmaceutical & healthcare, hi-tech and manufacturing. Its customers include well-known companies like Wall Street English.
If you want to learn more about us, please visit our website at www.slipstream.com.cn or email us at marketing@slipstream.com.cn
WA L L ST R E E T E N G L I S H
the most supportive training in the
as Japan, Germany and India whilst
market. It’s the way that we teach
strengthening its position in its leading
and the blended method, powered
market – China.
by technology, that really makes our programme work.” With a global footprint spanning
for about 18 years, and it is currently our largest market,” Garcia notes.
across Europe, Asia, Latin America,
“We’ve got 75 centres across 11 differ-
North Africa and the Middle East, Wall
ent cities there today and close to
Street English has a rich legacy in the
70,000 students in the region with
education market.
plans to grow further.
Now, following a promising purchase
82
“We have been present in China
“Baring and CITIC purchased the
by Baring Private Equity Asia and CITIC
company earlier this year and they
Capital Holdings Limited, the firm is set
each bring very unique and amazing
to look for new markets in regions such
strengths to the partnership,” he con-
Click to watch: The Wall Street English ‘Blended Method’
AUGUST 2018
TECHNOLOGY
83
tinues. “CITIC understands the
companies within their portfolio, so we
Chinese market extraordinarily well
can learn a lot from them.”
and, as our largest market, it works to
As Chief Technology Officer, Garcia
our advantage to gain deeper expertise
is all too aware of how technology is set
in the region.
to transform the education sector for
“CITIC have a strong relationship
the better.
with technology giant Tencent, owners
At Wall Street English, he says that
of the WeChat platform with over a bil-
new cutting-edge tools are helping ele-
lion registered users. That’s beneficial
vate the learning experience for
for us as we can tap into their expertise
students and franchise owners alike.
to help accelerate our technology capabilities and reach more students. “Baring is also very strong in the education space with several education
“We’ve evolved from our roots as a traditional bricks-and-mortar company,” he says. “Technology is helping to present more choice to our learners. a s i a . b u s i n e s s c h i e f. c o m
TECHNOLOGY
Previously, we required students to come into our centres to register but last year we launched a new functionality in China through Alibaba’s Tmall platform, which allows students to enrol in some courses online whilst also allowing us to reach more prospective students. “Earlier this year, we also re-launched our own branded website in China that allows students to register and pay for their course online. It’s about the convenience factor. If they can’t come into a centre because they’re too busy or it’s not in their direct location they can sign up, register and start learning online.” Digitisation is not just transforming how consumers register for the course, it’s also giving them more flexibility and choice about where, when and how they’d like to study. “Our platform is available on a globally distributed architecture that can be accessible 24 hours a day, seven days a week,” notes Garcia. “We’ve launched mobile capabilities for our course so our students can learn on a smartphone or tablet. We also recently launched a digital classroom capability so that face-toface interactions with teachers can happen online. We are constantly innovating and utilising the scaled agile framework to rapidly react to market needs.”
“ We never use technology for technology’s sake. For us, it’s about applying technology that is fit-for-purpose to maximise the learning experience” — Michael Garcia, Chief Technology Officer a s i a . b u s i n e s s c h i e f. c o m
85
WA L L ST R E E T E N G L I S H
With a supportive learning environment and flexible study schedule, it
also helping the firm support fran-
seems that this model has been a
chisees and business partners so that
roaring success.
they can become more profitable.
The company owns its operations
86
Garcia believes that digitisation is
“As we complete the shift to new
in China as well as partially in its native
ownership, we are also promoting a
home of Italy but, beyond that, many
very simple yet contemporary technol-
of its centres across the world are
ogy footprint,” says Garcia. “It’s an
franchised.
opportunity to really focus on what’s
With a proven business model,
needed to operate the business and to
a top-class product, and promising
minimise both the costs and the com-
returns, the Wall Street English brand
plexity of our technology environment
is an exciting investment opportunity
for our franchisees.”
that has attracted partners around the globe.
AUGUST 2018
Other initiatives implemented by Garcia and his team include rolling out
TECHNOLOGY
Click to watch: The WSE Technology Team – Chennai 87
a new placement test that assesses students’ English ability. Wall Street English is helping to provide more personalisation for learners and an adaptive, flexible learning environment and it seems data and analytics will be critical to make this a reality. “We’re always thinking about how we help our students achieve their personal goals through the power of learning English. Our course is structured into 20 levels. This means that, no matter where you are in your learning journey – if you’re a beginner or more advanced – we can tailor the course to suit you. a s i a . b u s i n e s s c h i e f. c o m
WA L L ST R E E T E N G L I S H
“We’re focused on changing futures. As a premium offering, we emphasise the world-class service we offer and the support our students receive throughout their whole learning journey” — Michael Garcia, Chief Technology Officer
88
AUGUST 2018
TECHNOLOGY
“We’re rolling out a new placement
“It looks at several metrics and
test that basically assesses our stu-
sends a warning if it identifies that a
dents’ English ability and tells them
student is struggling or going off track.
the level that they should be starting
This allows our staff members to step
at when they join our course,”
in and intervene. We want to ensure
Garcia explains.
that our students have a great experi-
“Our students want a course that is tailored to their needs and can be
ence and progress.” Adapting to the ever-changing needs
adjusted depending on their progress.
of the market is perhaps one of the big-
Some students may want to move
gest hurdles facing Wall Street English
more quickly, while others want to take
today, but by partnering with agile
their time and put a bit more emphasis
technology partners Garcia says the
on certain topics. We’re using data to
firm is ready for consumers’ education
adapt the course to their needs.
needs of tomorrow.
“Today, we have a patented algo-
“We value the partners that really
rithm which considers several factors
take the time to understand the
to understand how a student is pro-
dynamics of our business and
gressing through their learning
want to evolve with us,” he adds.
journey,” continues Garcia.
“It is with such
BIO
Michael Garcia is Chief Technology Officer at Wall Street English. With 16 years of experience, Michael leads the business’ technology strategy, ensuring key platforms are fully supported and provide the best customer experience. He also provides crucial support to global franchisees, helping them to maintain and grow operations. a s i a . b u s i n e s s c h i e f. c o m
89
WA L L ST R E E T E N G L I S H
a changing landscape that we sometimes have to shift our focus very
services in China.” Today, Wall Street English stands as
quickly to work on new projects. One of
one of the largest providers of English
our partners, Slipstream, have been
language education for adults. The firm
working with us for several years. They
provides English language instruction
have shown a strong knowledge of the
to over 200,000 students worldwide,
market and they understand our key
and thanks to its cutting-edge digital
enterprise platforms very well.
strategy it seems the firm is set to con-
“It’s also great to have such a partnership with Baring and CITIC and
tinue on this upward trajectory. “Above all, what excites me in the
access to their portfolio companies.
next five to 10 years is the overall tech-
For example, we work closely with
nology strategy,” Garcia says.
CITIC Telecom to provide networking
“Technology has become a central
90
“ The investments we’ve made and continue to make in improving our technology capabilities are having a huge impact in the performance of our business, and most importantly, the outcomes of our learners” — David Kedwards, CEO AUGUST 2018
TECHNOLOGY
91
aspect of the company’s operations
“The investments we’ve made and
and its future growth so I’m excited to
continue to make in improving our
be playing such a big part in that while
technology capabilities are having a
also having a direct impact in changing
huge impact in the performance of our
the lives of our learners.”
business, and most importantly, the
The efforts of the company’s technology department haven’t gone
outcomes of our learners,” he says. “Michael and his team are playing a
unnoticed. CEO, David Kedwards,
central role in this digital transformation
highlights that technology will remain
of our business.”
a pivotal arm of the company’s business strategy. a s i a . b u s i n e s s c h i e f. c o m
Enhancing patient lives
thanks to proficient
procurement
92
AUGUST 2018
S U P P LY C H A I N
JAPANESE PHARMACEUTICAL GIANT TAKEDA IS REALISING THE BENEFITS OF A REORGANISED SUPPLY CHAIN. BERNADETTE MAIER, HEAD OF PROCUREMENT FOR EMERGING MARKETS, REVEALS HOW SHE PLANS TO KEEP UP THE MOMENTUM WRITTEN BY
TOM WADLOW PRODUCED BY
CHARLOTTE CLARKE
93
a s i a . b u s i n e s s c h i e f. c o m
N
o company survives 237 years without a degree of forward thinking. For Japanese pharmaceu-
tical firm Takeda, this has been no more apparent than in the past four of these years. An institution in Japan, Takeda’s rich journey spanning more than two centuries has exponentially gathered pace during the last decade thanks to a series of acquisitions. However, in order to make such growth sustainable for the long term, CEO Yasuchika Hasegawa decided in 2014 that a new, globalised approach was required. Fast-forward to 2018, and a centralised 94
procurement function is responsible for more than $6bn of Takeda spend – the engine room driving the company’s expansion in existing and new markets. Bernadette Maier is Takeda’s Head of Procurement for Emerging Markets. Based in Singapore, she joined the firm in December 2016, lured by a combination of a legendary heritage and the chance to play a leading role in new market entries. Her mission? To utilise and develop Takeda’s post-transformation procurement setup and generate value for both business and patient. “The vision which goes across all Takeda procurement is really being inspired by the patients we serve,” AUGUST 2018
S U P P LY C H A I N
she says. “The function really is working in partnership, and I think that is the key word here. We are working in partnership to create competitive, sustainable procurement capable of delivering exceptional value for Takeda and improving the lives of patients.” FACTS
The Japanese firm is ranked 12th in the world by prescription sales and enjoys a particularly strong presence in North America, Asia and Europe 95
A ROOT AND BRANCH TRANSFORMATION The work undertaken prior to Maier’s arrival laid the foundation that she works from today. Before 2014, Procurement was organised in seven fragmented silos which individually held little strategic influence in the company as a whole and only delivered minor cost savings per annum (approximately $60mn). In just two years, owing to a concerted effort unanimously backed by company leaders, Takeda’s procurement function transformed into a global, category-based a s i a . b u s i n e s s c h i e f. c o m
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S U P P LY C H A I N
“ THE FUNCTION REALLY IS WORKING IN PARTNERSHIP, AND I THINK THAT IS THE KEY WORD HERE. WE ARE WORKING IN PARTNERSHIP TO CREATE COMPETITIVE, SUSTAINABLE PROCUREMENT CAPABLE OF DELIVERING EXCEPTIONAL VALUE FOR TAKEDA AND IMPROVING THE LIVES OF PATIENTS” — Bernadette Maier, Head of Procurement for Emerging Markets
organisation which now holds a place
busy with our internal activity
at the top table of decision making.
rather than being there with our
Maier highlights the importance
business partners, at the table
of a partnership culture, driven by
early on to see what their needs
teams which work collaboratively
are and understanding what they
to achieve goals.
need to be successful.
“In the past I think we were very
“We also needed to be speak-
much transactional and operational
ing their language. I think this is
orientated,” she explains. “We were
the key that we have now – a proa s i a . b u s i n e s s c h i e f. c o m
97
Takeda Berlin
98
curement team on the ground
FACTS
who also understand our business partners' language.” This holistic approach has already reaped reward to the tune of almost $1bn in savings made in the financial years 20142017, with Takeda awarded a Procurement Leader’s World Procurement Award for Internal Transformation. For Maier, now is the time to stabilise and build on this success. “A lot of people tend to AUGUST 2018
Among Maier’s key emerging markets include Russia and former Soviet countries, Latin America and China
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forget how important stability is. There is
TRUST AND TALENT
a balancing act we need now, especially
Maier’s leadership revolves
when it comes to emerging markets like
around a strong faith in her team
Russia and China.
of 23 professionals based in vari-
“Another key challenge and priority is making
ous sub-regions on the frontlines
sure we win the battle for talent. We want to be
of delivery. Whether in Sau Paulo
recognised as a very attractive employer, with
or Dubai, she has empowered her
Procurement seen as an attractive place to be.
leadership to make decisions for
“Finally, the fundamentals. The core is that
the best interest of the business
we deliver value and, ultimately, enable the growth and research and development we
and end user. Many of these regional leaders
need in order to benefit the lives of our
are fellow women, another cultural
patients. It all goes back to the patient again.”
feature that makes Takeda stand
S U P P LY C H A I N
out in the realm of procurement. Across the whole Procurement organisation there is a 50-50 male to female leadership split. “From a recruitment point of view, it is attractive to see that women can develop a career here in Procurement, “says Maier. “There is space for women, which I think also makes Takeda a very successful brand. We don’t have that problem you see in so many industries where the higher up you go, the fewer women you see.” Maier has just returned from Boston in the US where she 101
“ LOOKING AT EMERGING MARKETS, THERE ARE SO MANY PATIENTS OUT THERE WHO NEED OUR PRODUCTS. I STRONGLY BELIEVE THAT TAKEDA CAN BRING GREAT THINGS TO THE PATIENT AND TO SOCIETY, AND THIS WHY I AM EXCITED DAILY TO WORK HERE” — Bernadette Maier, Head of Procurement for Emerging Markets
a s i a . b u s i n e s s c h i e f. c o m
helped lead a procurement talent workshop for the company. Succession planning is a key part of her job in ensuring that Takeda attracts and keeps hold of valued staff, and the ability for employees in Procurement to travel and take on special projects helps make it an attractive organisation to work for. She also elaborates on Takeda’s ‘Procurement Academy’: “This is our internal learning programme, an online portal for all 102
procurement employees. There are around 100 different programmes, from negotiation training to finance programmes
feature. Communications have also
for procurement. So, whatever
been transformed, with channels
their needs are, they can tap in.”
such as Yammer, e-newsletters and video all utilised to boost engage-
AN INNOVATION FOUNDATION
ment across the company’s 350
Technology is another important
procurement professionals.
draw for Procurement employees, according to Maier. A vital element of company’s the
“We recently launched a ChatBot, “TakiSan”, for Takeda Procurement,” Maier adds. “This
2014-2016 procurement transfor-
ChatBot is learning our languages.
mation was the introduction of a
It's learning how to identify cost-
new suite of technology which
packages on accounts in order
underpins the centralised model,
to answer questions from the busi-
with self-service tools being a key
ness. We are very much looking into
AUGUST 2018
S U P P LY C H A I N
FACTS
Takeda is the largest pharmaceutical company in Japan and commercially present in more than 70 countries, with products and innovations predominantly covering areas of metabolic diseases, gastroenterology, oncology, cardiovascular health, CNS diseases, inflammatory and immune disorders, respiratory diseases and pain management.
a s i a . b u s i n e s s c h i e f. c o m
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what artificial intelligence can mean for us in the future." “We also have large projects going on to harmonise our system landscape we have in place. For example, we are really strong on the use of Ariba. All of this shows me that I'm in the right place with my leadership team, with my peers, having this vibrant conversation on the impact
“ THERE IS SPACE FOR WOMEN, WHICH I THINK ALSO MAKES TAKEDA A VERY SUCCESSFUL BRAND. WE DON’T HAVE THAT PROBLEM YOU SEE IN SO MANY INDUSTRIES WHERE THE HIGHER UP YOU GO THE FEWER WOMEN YOU SEE”
of Procurement going forward.” The importance of Takeda’s
— Bernadette Maier, Head of Procurement for Emerging Markets
procurement function cannot be understated when it comes to the 104
firm’s pioneering output of medical treatments. Maier cites Takeda’s recent efforts with its dengue vaccine candidate, which remains a key area of focus to help tackle this significant mosquito-borne viral disease that threatens 40% of the world’s population. And it is this end output and potential to transform lives that ultimately motivates Maier on a daily basis. “Looking at emerging markets, there are so many patients out there who need our products. I strongly believe that Takeda can bring great things to the patient and to society, and this why I am excited daily to work here,” she concludes.
AUGUST 2018
S U P P LY C H A I N
105
a s i a . b u s i n e s s c h i e f. c o m
T 106
AUGUST 2018
TECHNOLOGY
TELEKOM MALAYSIA redefining procurement for supply chain success WRIT TEN BY
DA LE BENTON PRODUCED BY
CHARLOT TE CL ARK E
a s i a . b u s i n e s s c h i e f. c o m
107
T E L E K O M M A L AY S I A
Through a full-scale transformation journey, Telekom Malaysia redefines its procurement function
H 108
istorically, procurement has
business needs and strengthening
always been perceived as
supplier relationships to deliver shared
a support function. Over the
value to the organisation,” says
last decade however, there has been
Mohamad Mohamad Zain, Chief
a considerable shift as more and more
Procurement Officer, TM.
businesses around the world are
With a career spanning over 20
investing heavily to create greater
years, working in a number of roles
alignment between procurement and
within TM from insurance management
the strategic direction of the company.
to enterprise risk management,
For Telekom Malaysia Berhad (TM),
Mohamad has seen first-hand the
Malaysia’s Convergence Champion,
changing role of procurement and feels
procurement has evolved far beyond
his experience finely positions him to
its traditional function and is now
lead TM’s transformation journey.
pivotal in the success and future growth of the business. “Procurement has indeed played
Procurement was identified as one of the key pillars to the company’s Performance Improvement Plan (PIP)
a pivotal role in ensuring speed to
3.0, which focuses on delivering value
market, improving customer stickiness
via total cost ownership savings,
via quality products and services while
increased speed of procurement
also assuring supply sustainability to
process to support speed to market
support all year-round dynamic
and be more responsive to the
AUGUST 2018
TECHNOLOGY
“The Group Procurement vision is to optimise productivity,” says Mohamad, “while also building an organisation that has a sustainable competitive advantage towards “Procurement Made Easier” with stable, effective and efficient sources of supply” — Mohamad Zain, Chief Procurement Officer, TM
109
dynamic business needs across the wider TM Group. “The Group Procurement’s vision is to optimise productivity,” says Mohamad, “while also building an organisation that has a sustainable competitive advantage towards “Procurement Made Easier” with stable, effective and efficient sources of supply.” Through his role, Mohamad is a s i a . b u s i n e s s c h i e f. c o m
Building a Better Connected Malaysia Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. With integrated solutions across four key domains – telecom networks, IT, smart devices, and cloud services – we are committed to bringing digital to every person, home and organisation for a fully connected, intelligent world. Huawei’s presence in over 170 countries, serving 45 of the world’s 50 largest communication operators and is at Forbes Top #79 company. Huawei achievement are through trusted partnership and collaboration. Where
www.huawei.com/my
Huaw custo syste
At Hu centr susta innov innov resea that a priv
wei creates value, drives growth and improves omer operation, create lasting dynamic to the ecoem and co-existence with our customer.
uawei, we fulfil our customer needs of experience ric services and strategic focus and our customer ainable growth that inspire global and local vation in their organisation. Emphasising in vation focuses Huawei invest heavily in advance arch, concentrating on technological breakthroughs drive the world forward. Founded in 1987, Huawei is vate company fully owned by its employees.
T E L E K O M M A L AY S I A
“ We are expecting the Industrial Revolution 4.0, and so the future of procurement will largely dependent on technology, robotic and Internet of Things (IoT). Through our journey, we are laying the foundations in order to be ready for this future� 112
— Mohamad Zain, Chief Procurement Officer, TM
AUGUST 2018
BIO
Mohamad Zain Chief Procurement Officer, TM Mohamad, 54, gained vast experience in insurance services while serving a UKbased insurance company for six years, including as Officer in charge for agency and direct client underwriting, claim management and re-insurance, designing insurance for credit card company and bank assurance, serving both domestic and Multinational Corporation clients. He joined TM in 1993 as an Assistant Manager and has been tasked with managing the corporate insurance programme and implementing the Enterprise Risk Management programme for TM in 2001. In 2007, he was appointed GM entrusted with an expanded portfolio of Group Business Assurance covering Enterprise Management, Revenue Assurance, Fraud Management, Insurance Management, Credit Management Policy & Monitoring, Corporate Compliance, Business Continuity Management and Enterprise Business Management. He was promoted to VP, Group Business Assurance, a position he held from 2011 until his appointment as Chief Procurement Officer on 1 September 2014.
TECHNOLOGY
part of the senior management committee, something he feels enables him to change the perspective of procurement. One of the key changes that he has implemented, in order to measure the success of this strategic transformation, is the addition of optimising the supply chain and procurement management as the Group’s key performance indicators. What this does is present a challenge that Mohamad must continue to overcome; continue to demonstrate to stakeholders the
113
true value of the new procurement
understanding the already identified gaps in the
model in contributing positively to
Company’s basic procurement function.
the Group’s profitability. “I need to continue to show how
These gaps allowed TM to anchor its transformation with three key pillars; value creation and
procurement can assist our
expansion, responsive to business dynamics and
marketing team on speed to market
speed in procurement process and execution.
with competitive product and
The pillars will enable TM to implement
services,” he says. “This can then
a best-in-class procurement model, but any
ensure that our suppliers can fully
transformation journey is not without challenge.
apprise on the overall objective of our new procurement model.” TM’s transformation journey
For Mohamad, he views challenge as an opportunity to continue pushing forward. “I look across our transformation to date, the
began in 2013, overseen by
results that we can point to, and it gives me the
Mohamad’s predecessor. Moham-
additional adrenalin I need to keep on pushing for
ad took over in 2015 and immedi-
better results,” he says. “Whilst we have success-
ately worked across the Group on
fully established a cross functional category a s i a . b u s i n e s s c h i e f. c o m
C O M PA N Y N A M E I N C O R P O R AT E C O L O U R
FIBERHOME GROUP FiberHome Technologies Group is a leading equipment vendor and global solution provider the field of information technology and telecommunications. This high-tech enterprise is directly affiliated to the State-owned Assets Supervision and Administration Commission of the State Council. It is also the largest enterprise located in the Optics Valley, Wuhan, China.
114
FiberHome Group Add:No.6, Gaoxinsilu, East Lake High-Tech Development Zone, Wuhan, Hubei, P.R.China 430205 Tel:+86-27-81618829 | Fax:+86-27-81618977 Email: marketing@fiberhome.com Wuhan FiberHome International ( Malaysia) Sdn. Bhd. Add:Level 43 South Wing, Menara TM, Jalan Pantai Baharu, 59100 Kuala Lumpur Tel: +603 2241 5780/4818/4808 | Fax:+603 2241 4770
MONTH 2018
Sales Directot: Aslan Zhou Email: zhoujun@fiberhome.com
www.fiberhomegroup.com/en
TECHNOLOGY
management team, improved
But Mohamad is a firm believer in not standing still
governance to allow speed of
and is already looking at the next step in order to
procurement approval, and
continue to improve, with technology and
strengthened supplier relationship
embracing digital procurement a clear goal.
management, there is still room
While Mohamad looks to the future
for improvement, including
of technology, that’s not to suggest that technol-
embracing technology.”
ogy hasn’t played a defining role in this transfor-
The transformation by its very nature is defined by improving
mational journey. “To support the procurement transformation,
performance. Mohamad’s
technology has and will be fundamental in the
sentiment of continuous learning is
delivery of speed and efficiency in our processes,”
shared across the Group. Four
he says. “As such, we have embarked on PINTAR
years into this journey and TM can
project, designed to provide data analytics on
already point to RM1.0 billion
spend analysis for our category managers.”
(USD250 million) TCO savings
PINTAR, or the Procurement Institutionalisa-
through the expansion of value
tion of Technology Applications and
creation, as well as expanding its
Resources, specifically enables greater
strategic vendor portfolio and
efficiencies across spend analysis, online tender
improving overall governance and
and quotation, supplier performance manage-
control in order to achieve faster
ment and contract management and repository,
procurement process.
amongst other key areas. a s i a . b u s i n e s s c h i e f. c o m
115
T E L E K O M M A L AY S I A
With technology redefining industries all around the world this brings upon a challenge that is not unique. The global technology conversation is defined by Artificial Intelligence, Automation, Big Data, but are these terms simply turning into buzzwords? What work does Mohamad and TM do to ensure that the Company is implementing the right technologies for the right reasons and not just following trends? “As a technology company, technology and digitalisation have been part of our business DNA from the very start,” says Mohamad. “TM has its own R&D team, Network & IT Technical Committee and Chief Digital Officer 116
that continue to provide advisory across the Group on new technology and digitalisation plan. At the same time, we also benchmark with peers across the globe and in some instances securing advice from our key suppliers who have implemented robust supply chain management system.” As a supply chain and procurement function, having a strong supplier network is crucial. In the journey of implementing a new procurement model, that supplier network proves more vital than ever. Mohamad admits that a transformation of this scope is not one that can be completed alone, with the strengthening of supplier relationships in itself a core pillar of the journey. TM has redefined how it approaches supplier and vendor management, with expanded collaboration with mega AUGUST 2018
TECHNOLOGY
“ Whilst we have successfully established a cross functional category management team, improved governance to allow speed of procurement approval, and strengthened supplier relationship management, there is still room for improvement, including embracing technology.” — Mohamad Zain, Chief Procurement Officer, TM
a s i a . b u s i n e s s c h i e f. c o m
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T E L E K O M M A L AY S I A
suppliers (foreign and domestic) and those local vendors nurtured via its Bumiputera-Vendor Development Programme (BVDP). To date, we have over 9,200 vendors registered with us with close to 4,400 Bumiputera vendors. At TM, we have a robust and transparent procurement process; and we adhere to industry’s best practices. We are committed to maintaining the highest degree of integrity, transparency and accountability in the conduct of our business and operations. At least 42% of our projects are based on tenders and we also award projects that require economies of scale to our long term and strategic partners. 118
The BVDP is designed to stimulate the activity and involvement of local suppliers across Malaysia in tenders and other procurement activities. These activities can be stand-alone or through collaborating with foreign partners, with the goal of sharing technology and knowledge to the local suppliers in order to develop the capabilities of the local supplier network. “This programme will not only support the capability building of local vendors who will then be able to compete for regional business needs through tenders,” says Mohamad. “For TM, based on our BVDP framework, the entry level would be the Entrepreneur Development (ED) and Blue Lane (ED programme specific for ICT-based or start-up technology company companies) levels. Once the vendors show AUGUST 2018
TECHNOLOGY
improvement in their processes and capabilities, they will then be upgraded to Strategic Partners, and then elevated to become a Corporate Champion and finally to a National Champion. This journey may take three to five years.” TM has already amassed a strong portfolio of both foreign and local strategic suppliers such as Huawei, Fiberhome, Nokia as well as Opcom, Dura Mine and Lite Cable. As the title implies, this procurement journey is one of continuous improvement. Procurement as a function will continue to change and evolve and TM must continue to evolve with it in order to continue to deliver success. “The future will see TM begin to better embrace new technology, organisational and process redesign, and continue to push for cultural change in supporting this changing space,” says Mohamad. “We are expecting the Industrial Revolution 4.0, and so the future of procurement will largely dependent on technology, robotic and Internet of Things (IoT). Through our journey, we are laying the foundations in order to be ready for this future.”
a s i a . b u s i n e s s c h i e f. c o m
119
Malaysia’s utility powerhouse:
120
Tenaga Nasional Berhad
Embarking on its new strategic vision ‘Transforming TNB,’ Tenaga Nasional Berhad has high ambitions to become one of the world’s top utility players by 2025 WRITTEN BY
LAURA MULLAN PRODUCED BY
ALEX PAGE
AUGUST 2018
ENERGY
121
With a total capacity of 50MW, Large Scale Solar (LSS) farm located in Kuala Langat, Selangor is the first and the largest in Malaysia a s i a . b u s i n e s s c h i e f. c o m
TENAGA NASIONAL BERHAD
W
With over 9.3mn customers in Peninsular Malaysia, Sabah and Labuan, Tenaga Nasional Berhad (TNB) is
now a household name, standing proudly as the largest electricity utility in Malaysia. In providing electricity to the region’s businesses, homes and industries, the utility firm has truly helped to develop and empower the nation, all whilst championing an unwavering commitment to sustainability. But now, what is the next step for the utility giant? With its meticulous 2025 vision – ‘Reimagining 122
TNB’ – the company’s CEO and President, Datuk Seri Ir. Azman Mohd, explains how the utility company wants to build on its rich legacy and become a top 10 global utility player by 2025. In doing so, TNB hopes to empower people for a better life and a better future. “TNB is a born and bred Malaysian company, which has a rich and deep-rooted history in building the nation, even before the country received its independence,” reflects Azman. “With 67 years of experience, TNB is Malaysia’s leading utility player throughout the value chain of Generation, Transmission, Distribution and Retail. “Guided by the ‘Reimagining TNB’ strategy, TNB is now venturing into new businesses and opportunities beyond our conventional business and territory,” he continues. “Over the past AUGUST 2018
TNB workers stringing the lines of the monopole tower, Pulau Besar, Melaka, Malaysia
ENERGY
TNBs latest plant in Perak, Manjung is the most efficient coal-fired power plant in South East Asia
Click to watch: ‘Tenaga Nasional – Better. Brighter’ 123
TNB is a born and bred Malaysian company — Datuk Seri Ir. Azman Mohd, CEO
a s i a . b u s i n e s s c h i e f. c o m
TENAGA NASIONAL BERHAD
leader in renewable energy. “So far,
TNB believes that its value lies not only in providing access to electricity to homes and businesses throughout the country but also in adopting sustainable practices and activities in our operations to improve societal and environmental outcomes
we have secured 741 MW of renewable energy capacity globally,” comments Azman. In keeping with this strategy, TNB has undertaken a series of acquisitions and investments in the renewable sector. In March, for instance, the firm snapped up an 80% stake in Bluemerang Capital and Temporis Capital-managed GVO wind.
124
— Roslan Ab Rahman, CCO
“This acquisition complements TNB’s solar renewable assets in the UK by ensuring a stable portfolio
few years, TNB has expanded its international
revenue generation all year round,”
footprint, having established its name in countries
explains Azman. “Wind energy
such as Pakistan, Saudi Arabia, India, Turkey and
assets, in general, generate more
the United Kingdom, making TNB one of the larg-
revenue in the winter period whilst
est electricity companies in Asia.”
solar assets generate the most rev-
Rising to the top of the ranks is no easy task
enue in the summer months.”
but TNB believes it has a meticulous plan for success. Based on four key pillars, TNB’s new strate-
NEXT-GENERATION GRID
gic vision aims to: find future generation sources,
Additionally, the Malaysian firm
create the grid of the future, win the customer
has set itself the task of creating
and futureproof regulations.
the grid of the future by promoting greater digitization and automation.
A GREENER FUTURE
As such, it is set to introduce smart
As part of its so-called future generation sources
meters and advanced metering in-
strategy, the electricity utility is shifting its focus
frastructure facilities for its custom-
towards renewables, aspiring to be the ASEAN
ers and implement data analytics,
AUGUST 2018
TNB is a customer-centric company, supplying household, industrial and business customers with a wide range of energy solutions and services beyond just the sale of kWh
125
S TAT
1949
Year founded
analysis and automation of its operations. “As the backbone of the electricity system, the grid represents the single most impactful component of the energy industry and a country’s
35,000+
Approximate number of employees
energy needs,” notes Azman. “Therefore, we do not expect grid operations to stay the same as we progress into the future. We are looking to invest in technological advancements that will allow for greater digitisation and automation of a s i a . b u s i n e s s c h i e f. c o m
TENAGA NASIONAL BERHAD
FACT
the grid. This will lead to improved performance and reliability, which will ultimately benefit our customer.”
CUSTOMER-CENTRIC The third critical pillar of TNB’s strategic vision – winning the customer – underscores its plan to create new and enhanced services and products. After all, when stripped down to its core, the focus of any successful business is simple – to meet the demands of the customer. 126
• Tenaga Nasional Berhad is the largest electricity utility in Malaysia. • Tenaga Nasional Berhad has a customer base of 9.3mn customers in peninsular Malaysia, Sabah, and Labuan. • Moving up 17 spots from 39th place in 2016, TNB is now acknowledged as one of the fastest growing brands in the sector, being ranked 22nd by Brand Finance Utilities 2018 with a brand value of USD$1.64b.
Putting its customer at the heart of its strategic plan, Azman describes how TNB intends to promote a value-centric understanding of its customers. “This means looking at customers as more than just a meter and understanding their values and needs beyond their kWh consumption,” he explains. “We have already identified several specific projects ranging from energy management to smart city utility services with various government agencies and corporate entities.” This customer centric-focus is also echoed by Datuk Fazlur Rahman Zainuddin, TNB’s Chief Financial Officer, who highlights that an unwavering commitment to customer satisfaction is at the foundation of the 67-year old company’s legacy. “Our simple business philosophy at TNB is AUGUST 2018
ENERGY
A stunning view of TNB’s men at work that it’s all about serving the needs of people,” he says. “Businesses must be clear of whom they serve and understand these people well. The moment businesses lose sight of this is when the firm loses its value proposition and thus profits or worse, loses its license to operate.” “Many words can be used to describe Tenaga Nasional Berhad, however, I prefer the simple description of ‘empowering people’,” he stresses. “If we were to go back in history and recall the development of Malaysia from a rural economy to what it is today, it is clear that by bringing electricity to homes, TNB has made a significant difference to the lives of people who, before then, didn’t have access to 24-hour electricity. “With electricity, lives of people, families and societies have been able to change for the better
The journey to the top entails a shift towards a more performance-oriented and adaptive culture
and as TNB, we are so privileged to be able to serve people this way.”
UPHOLDING HIGH REGULATORY STANDARDS Keeping pace with the ever-evolving regulatory environment, as the fourth and final pillar of TNB’s strategic plan, involves assisting the government in the execution of regulations and policies in the energy sector. In recent years, the government has imple-
— Datuk Wira Roslan Ab Rahman, CCO
mented Malaysian Electricity Supply Industry (MESI) reform initiatives which notably introduced Incentive Based Regulation (IBR) and a s i a . b u s i n e s s c h i e f. c o m
127
TENAGA NASIONAL BERHAD
TNB contributes towards unlocking the value of young Malaysians
128
Imbalance Cost Pass-Through (ICPT) mechanisms. Meanwhile, in 2015, the government
“Regulations make up a vital enabler of our business,” notes Azman. “We must, therefore, continue to work closely with
also launched a subsidy rationalisation
the relevant stakeholders to maintain a
programme and later it established a ring-
conducive operating environment and
fenced single based buyer, amongst other
ensure we have the regulatory support
reforms. Such regulations ensure that TNB
we need to achieve both our and the
operates efficiently and charges custom-
regulator’s aspirations.
ers competitively priced electricity tariffs.
“Additionally, it is imperative that we
This also promotes transparency, robust
remain perceptive and responsive to regu-
finances, and sustainable investments.
latory developments in both domestic and
As such, TNB is keen to collaborate with
foreign markets where we operate, so we
stakeholders to keep pace with today’s
can work harmoniously with the electricity
evolving regulatory environment.
industry laws that govern our sector.”
AUGUST 2018
ENERGY
Many words can be used to describe Tenaga Nasional Berhad, however, we prefer the simple description of ‘empowering people’ — Datuk Fazlur Rahman Zainuddin, CFO
A STRATEGY FOR SUCCESS
Megat Jalaluddin Megat Hassan, predicts
Optimistic about its 10-year strategic
that the firm will increase its earnings
plan, TNB says it is on track to meet these
before interest and tax by 30% in the next
concrete goals. In doing so, the Malay-
three to five years.
sian firm hopes to realise its potential and
“It is hoped that TNB can achieve or
become one of the top 10 utility compa-
even surpass the target and aspiration
nies in the world.
outlined in the strategy towards becoming
Moving up 17 spots from 39th place in
one of the top 10 utility companies in the
2016, TNB is now acknowledged as one
world,” he notes. “This includes becoming
of the fastest growing brands in the sec-
the ASEAN leader in renewables, build-
tor, being ranked 22nd by Brand Finance
ing profitable businesses in South Asia,
Global Top 50 Utilities 2018 with a brand
Southeast Asia and the Middle East, the
value of $1.64bn.
establishment of a robust smart grid that
On top of this, Chief Strategy Officer,
allows for bi-directional energy flow, and a s i a . b u s i n e s s c h i e f. c o m
129 129
TENAGA NASIONAL BERHAD
It is hoped that TNB can achieve or even surpass the target and aspiration outlined in the strategy towards becoming one of the top 10 utility companies in the world 130
— Megat Jalaluddin Hassan, CSO
Kampung Kuantan Firefly Conservation Project Conservation of fireflies, fireflies research, developing physical infrastructure and generating publicity to attract more tourists to Kampung Kuantan, Selangor, Malaysia
AUGUST 2018
ENERGY
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a s i a . b u s i n e s s c h i e f. c o m
TENAGA NASIONAL BERHAD
an increasingly digitally automated grid.”
CULTURAL CHANGE
For many years, TNB has been actively planting and replenishing trees through their ‘Tree for a Tree’ programme
Undertaking a mammoth 10-year plan, Tenaga Nasional Berhad is preparing for a new chapter in its journey and it’s one which is fully supported by its team of over 35,000 people. TNB’s Chief Corporate Officer, Datuk Wira Roslan Ab Rahman, highlights that apt communication and an innovative culture was critical to prepare the firm for such mammoth changes. “To make the staff key drivers of our transformation journey and equip them to be brand ambassadors for TNB, we translated the aspiration 132
and educated staff on the new direction of TNB and their role in bringing the aspiration to life. For this, we conducted numerous engagement sessions with the different levels of staff and continuously monitoring our progress. “The journey to the top entails a shift towards a more performance-oriented and adaptive culture. We are currently working towards ensuring that this culture is imbibed by the staff and ultimately adopted.”
CUTTING-EDGE CONFERENCES Beyond its four walls, TNB is also engaging with its peers to revolutionise the sector and create a brighter future for the region. As a result, the Malaysian firm is set to host the Conference of the Electric Power Supply Industry (CEPSI), AUGUST 2018
Lestari Community Project Installation of solar panels at community care centres to generate electricity under Feed-in Tariff (FiT) scheme
ENERGY
133
Better Brighter Shelter Programme is our newly introduced community programme to upgrade transit homes or dormitories at Government-owned hospitals in Malaysia
a s i a . b u s i n e s s c h i e f. c o m
TENAGA NASIONAL BERHAD
Electricity is and remains but one way of empowerment. With developments in technology, such as renewable energy, energy storage, connectivity, data analytics, and the Internet of Things, we see even more ways of empowering people further 134
— Datuk Seri Ir. Azman Mohd, CEO PINTAR School Adoption Programme TNB adopts under-performing schools and provides the students and teachers with support to enhance academic and non-academic outcomes
AUGUST 2018
ENERGY
one of the largest and most prestigious
compromised its ethics and corporate
events in the electricity supply industry in
responsibility.
the Asia Pacific. Roslan says: “We look upon CEPSI as
ETHICAL, SUSTAINABLE GROWTH
one of the vehicles that embodies our aspi-
With a desire to create a world that is
ration by bringing the topic of ‘Reimagining
‘Better. Brighter’, Azman describes how
Utility of the Future’ to the forefront. We’re
TNB continuously strives to go beyond
inviting the world’s best utility players and
what’s expected of it, giving back to
experts to share, network and highlight our
stakeholders and playing a meaningful
goals and get the conversation going as
role in the communities it serves.
we look for like-minded partners.” Yet, whilst outlining this ambitious ‘Reimagining TNB’ strategy, the utility firm hasn’t
As part of these efforts, the electric utility firm has implemented a Green Policy which plans to minimise the com135
a s i a . b u s i n e s s c h i e f. c o m
TENAGA NASIONAL BERHAD
pany’s environmental impact by adopt-
through education. Beyond the class-
ing sustainable practices, developing its
room, TNB has also nurtured technical
green energy business and reducing its
training through the support of voca-
carbon footprint through energy-effi-
tional education programmes through its
cient operations.
subsidiary, Integrated Learning Solution
Empowering local communities, TNB has also contributed to the education
(ILSAS). “As Malaysia’s leading utility com-
and development of Malaysian youths by
pany, TNB believes that its value lies not
advocating initiatives such as the PINTAR
only in providing access to electricity to
programme, a not-for-profit that aims to
homes and businesses throughout the
enhance the motivation and success of
country but also in adopting sustainable
students from underperforming schools
practices and activities in our operations
136
Universiti Tenaga Nasional (UNITEN) UNITEN not only prepares its graduates to be knowledgeable and competent professionals, but also develops them as well-rounded individuals with a broad intellectual outlook
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ENERGY
to improve societal and environmental outcomes,” notes Roslan. The energy sector is experiencing great change with new trends emerging
“We believe that these trends will substantially reshape our future, yet present exciting opportunities,” says Roslan. Moving forward, TNB will continue to
like the shift in economic power to Asia,
serve society by empowering them in differ-
technology disruptions, the end of cheap
ent ways. As CEO, Azman notes, “electricity
capital and evolving regulatory develop-
is and remains but one way of empower-
ments. By capitalising on these trends,
ment. With developments in technology,
TNB aims to unlock new growth areas,
such as renewable energy, energy storage,
win a new generation of customers,
connectivity, data analytics, and the internet
realise its global ambitions and unleash
of things, we see even more ways of em-
greater productivity.
powering people further.” 137
a s i a . b u s i n e s s c h i e f. c o m
n
138
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WT PARTNERSHIP
TACKLING DIVERSITY ACROSS SOUTH EAST ASIA WRIT TEN BY
ANDRE W WOODS PRODUCED BY
MIK E SADR
City Garden, Vietnam a s i a . b u s i n e s s c h i e f. c o m
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W T PA R T N E R S H I P
140
Will Kennedy-Cooke, MD WT Partnership (South East Asia), discusses the challenges as the business rolls out a consistent and reliable service across diverse jurisdictions in an evolving economic landscape.We also speak to his fellow MD’s Keith Wong (China) and Mark Van Beers (Hong Kong & Macau) about the challenges and growth in their respective regions‌
W
T Partnership is an independ-
and South East Asia (SEA), occupies a
ent international provider of
key position in one of the most culturally
quantity surveying and
diverse and economically-tempestuous
construction cost management services.
regions on earth. A fast-growing global
Founded in 1949 and with a presence in
company with an expertise that extends
Asia since 1962, its Asian Holdings
bespoke offerings of quantity surveying,
regional business, comprising Greater
cost management and facilities manage-
China, Hong Kong, Macau, North Asia
ment consultancy across Asia and
AUGUST 2018
CONSTRUCTION
period. In the short term WTP plans to open fulltime operations in two additional countries with staff numbers potentially growing to 300-plus in three to five years. “We have been very strategic in each location, harnessing homegrown talent with international expertise where and when required, but without losing sight of being a local business able to support local developers,” Will explains. “Our Singapore office is a hub that supports the region as a whole from which we can add management expertise to any location, together with sharing resources in specific sectors such as infrastructure and facilities management consultancy. internationally, WTP is highly regarded in the
“It is an integral part of our strategy
region, with unprecedented growth in SEA over
that we play to our strengths, work
the past decade.
with the clients and partners that are
After an initial spell there in the early 1990s, Will
a best fit with our people and
Kennedy-Cooke, MD SEA, relocated back to
develop a business that is built to
Singapore in 2006. At that time, after more than
last. We do not need or want to be
40 years of continuous operations, the SEA
the biggest, taking on any and all
business comprised 40 staff in two locations.
opportunities without regard to
Today WTP employs more than 200 staff based
suitability. However, we do strive to
in six offices across four ASEAN countries
be very good at what we do, to be an
working on projects across the region with
employer of equality and choice, to
revenue increased by more than six times in that
grow while retaining quality of a s i a . b u s i n e s s c h i e f. c o m
141
Paya Lebar Quarter, Singapore
142
Barangaroo South, Australia
Creating landmarks that define cities
Elephant & Castle, United Kingdom
Tun Razak Exchange Lifestyle Quarter, Malaysia
Lendlease is known internationally for creating award winning places. Operating in Singapore since 1973, today we are also located in Malaysia, China and Japan. Our integrated approach means we harness our expertise in construction, design, development, investments and management to deliver a project from conception to completion. We help shape city skylines, create iconic structures, breathe new life into forgotten precincts and create places and spaces for generations to enjoy.
AUGUST 2018
www.lendlease.com
CONSTRUCTION
Toll offshore petroleum supply base, Singapore
service, to aspire for continuous improvement and to care for how our clients optimise value from their development investment decisions. “We get involved with all sizes and types of projects providing proactive and assured construction cost management for our clients’ investments, together with enduring interest, variety and opportunity for our staff,” says Will, who oversees operations across the 10 ASEAN countries. “Our significant presence in the region ensures we are able to deliver both local and international services with a reputation for providing effective delivery of complex and mega projects.”
“ WE AIM TO PROVIDE VALUE IN MINIMISING WASTE THROUGH DESIGN, CONSTRUCTION AND OPERATION. WE LOOK AT HOW THE TOTAL PRODUCT CAN STILL BE COST EFFECTIVE, BUT BECOME LEANER WITHOUT COMPROMISING TIME OR SAFETY WHILE IMPROVING SUSTAINABILITY” — Will Kennedy-Cooke, Managing Director (South East Asia), WT Partnership
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W T PA R T N E R S H I P
144
“ QUANTITY SURVEYING IN HONG KONG, MALAYSIA AND SINGAPORE IS AN IMPLICIT DISCIPLINE, BEING THE LEGACY OF BRITISH INVOLVEMENT IN THEIR DEVELOPMENT, AND TODAY THESE LOCATIONS PROVIDE EDUCATION THROUGH FULL-TIME COURSES IN THE EXPERTISE” — Will Kennedy-Cooke, Managing Director (South East Asia), WT Partnership
Macau Studio City, Macau Due to WTP’s longevity in the region, it enjoys excellent relations with some premium partners from a variety of locations. Will has been involved in some high-profile projects in SEA covering both commercial and public-sector constructions including World Trade Centres 2 and 3 in Jakarta, TRX Living Quarter in Kuala Lumpur, Australian Embassy in Bangkok, the International School Ho Chi Minh City and Marina Bay Sands in Singapore. “In SEA we’ve undertaken a lot of work with Cognita, a leading global education provider,” says Will. “The relationship with Cognita stretches more than 12 years based on the
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145
formation of trusted relationships with their key
“Our Hong Kong office was
people while creating a baseline for common
initiated in 1976 to start working with
understanding. We have collaborated on more
Hongkong Land, a member of the
than 10 projects across SEA markets, assisting
Jardine Matheson Group. We are
Cognita to provide world-class teaching
very proud of the relationship that
environments. It continues to be a very strong,
has flourished through several
fertile and mutually beneficial relationship.
generational changes of key
“We continue to work with Toll, an Australian
personnel in either business over
origin logistics group now owned by Japan
more than 40 years and continues
Post. We started working directly for them in
today working across multiple
Asia a decade ago and more recently, having
markets in our region. Project
successfully delivered a number of projects
locations include Cambodia, China,
in Singapore, we are also working with them
Hong Kong, Indonesia and
in Australia and New Zealand.
Singapore with the most recent a s i a . b u s i n e s s c h i e f. c o m
W T PA R T N E R S H I P
BIO
Keith Wong Executive Chairman, Asia, Managing Director (China)
146
For our business in China, employing two site staff working in a client’s site office when we started in 1996 in Shanghai, expanding to 50 in 2006, to more than 500 today with 8 offices across China. We adhere to a traditional quantity surveying practice but when we started, Chinese projects were highly protected, mainly state-owned enterprise (SOE) government projects, although they welcomed foreign investment. And so, we followed Hong Kong developers as they delivered projects in China. At that time more than 95% of our clients were from Hong Kong or overseas with very few local clients. There was no quantity surveying in China then; they had some cost engineers, but didn’t provide a comprehensive service as we do, from inception to completion of the project. It was not an easy task, at that time, because they just didn’t understand the purpose of undertaking cost control. They didn’t understand
AUGUST 2018
why they needed an independent professional to update the interest of the client side because, at that time, the local client were often very big state-owned enterprises that didn’t know or worry about where the money had been spent. Our local clients grew to 10% after seven years or so, starting from smaller projects, before getting bigger and bigger. The major opportunities were still foreign (mainly Hong Kong) as local investment was more or less owned by a local government or state-owned enterprise. From 2005 to say, 2010, most of our projects were in real estate: property development, residential, commercial, hotels, and mixed use. The client’s just build and sell for a quick cash return. The scale was getting bigger and bigger during that period of time; in the UK, 50,000 sqm may have been considered to be a big project but in China, a big project by then was 500,000 sqm. The clientele has since continued
CONSTRUCTION
to shift from foreign to local and some 70% of our clients are Chinese now with the rest foreign. So, that change is quite substantial and we’re now doing 4,000,000 sqm projects. Currently, we are working for insurance companies like Ping An Insurance and financial institutions such as Shanghai Stock Exchange, that we were never able to get in touch with 10 years ago. E-commerce is expanding so fast and we have done an increasing amount of work in logistics relating to that sector, with clients such as JD.Com and Alibaba. We’re doing a 800,000 sqm data centre campus for them and companies like JD.Com, who is the second biggest e-commerce company here. We are also doing a lot of campus work for telecommunication giants Huawei and Tencent. Now we’re helping also lot of local developers going overseas to do projects in the likes of India, Vietnam, Australia and Italy. Something like
90% of the senior management in Chinese companies cannot speak English and so that’s why we have a very major role to play. China is changing so quickly. The second-child policy was introduced in 2015 and now the birth rate is 22mn babies per year with estimates this will increase to 30m very soon. The wealth of the Chinese community is expanding and the middle class is quite affluent now, so they’re prepared to pay a lot of money for their children’s education. Consequently, international schooling is a booming market and we are currently working for AIS, Yew Chong International School, Wellington and Harrow from UK who all have big expansion plans in the coming few years.
a s i a . b u s i n e s s c h i e f. c o m
147
An inspiring world of education Cognita is an extraordinary family of diverse yet connected schools joining forces in an inspiring world of education with one common purpose: building self-belief and empowering individuals to succeed. With over 70 schools in Europe, Latin America and Asia, Cognita provides a uniquely global education for more than 40,000 students that goes beyond grades to develop all-round academic excellence.
Find out more about us at www.cognita.com
YOUR WORLD OF OPPORTUNITY Jakarta Land is a joint venture between CCM and Hongkong Land, which develops and manages the 8 hectare WTC Complex on Jalan Jenderal Sudirman, Jakarta, Indonesia.
Website: www.jakland.com Email: leasing@jakland.co.id
CONSTRUCTION
budget through collaboration with the client and, where available, with input from the principal design team members. We will then be employed to continuously advise, monitor and update, providing forward forecasting to enable decisions that deliver the completed project to budget. Assuming the budget for capital expenditure is correctly established and informs the feasibility for the project, and assuming revenue
Ningbo Shangri–La Hotel, China
projections are met, then delivering to, or within, that capital budget
completion being World Trade Centre 3 in
means the project returns for the
Jakarta for PT Jakarta Land, a company jointly
client will be met or even enhanced.
owned by CCM and Hongkong Land.
We provide an early warning system
“Another client we do a lot of repeat order work
for issues that are either likely to
for in SEA is Lendlease which has been in
compromise the budget or may
Singapore since the early 1970s. We’ve been
provide value-added opportunities,
fortunate to be involved with their more recent
meaning the earlier you capture it,
SEA development work and we’re currently
the easier it is to plan for how and
working on both their Paya Lebar Quarter
when that issue is to be managed.”
project in Singapore and their Tun Razak
When commissioned to do so,
Exchange Lifestyle Quarter project in Kuala
WTP provides and facilitates formal
Lumpur; the latter being delivered in joint venture
value engineering, or value
with TRX City, a wholly owned subsidiary of the
management workshops early in
Malaysian Ministry of Finance.
the design process to help establish
“In an ideal sense, we get involved right from the outset,” he explains. “Setting the construction
the real aspirations and requirements of a project. Focus is set upon a s i a . b u s i n e s s c h i e f. c o m
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what’s wanted rather than “what’s
whatever reason, is unable to deliver to time and
nice to have” and the removal of
cost. Our cost forecasting to the completion of the
waste. In the process of determining
project helps manage financial decisions and
value, WTP assesses what has to be
mitigate opportunities for dispute. However,
there and what is discretionary for
should a client become engaged in difficulties on
the design to balance the budget
a project, then we’re there to help, interpret and
and project brief.
diffuse,” he explains.
“Much of the discipline of managing the budget obviously depends on
Quantity surveying is an historically entrenched part of the construction process across
the procurement system that transfers the project to the construction phase, together with the profile of the client and its risk appetite. Time is 150
always a big issue because time is cost and therefore overall project programme has a big influence on the procurement strategy. Alternative approaches allow for transfer of construction time and cost risk at various points in the design process depending on the profile tailored to the client’s objectives. Once the transfer of that risk has been completed, the business of construction begins,” says Will. “We’re also the certifier of payments made to the contractors and we deal with any change through variations, getting further involved if the contractor, for AUGUST 2018
Team Building
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151 parts of the western world,
three locations, quantity surveying is just a part
principally where the British had
of the DNA of the construction and develop-
some involvement with establishing
ment industry. However, in the other SEA
standards and procedures, yet
locations, there are a number of developers who
differs in relevancy and application
may often be unaware of the discipline of cost
in other locations, especially in
planning and construction cost management,
today’s emerging markets.
or how to use the expertise.
“Quantity surveying in Hong
“While the core of quantity surveying and
Kong, Malaysia and Singapore is
construction cost management may be similar
an implicit discipline, being the
the world over, the detailed services we provide
legacy of British involvement in
across SEA markets varies and can also differ
their development, and today these
from those required, for example, in each of
locations provide education
China, Japan, South Korea or Taiwan. Day to
through full-time courses in the
day in SEA we are still mostly commissioned to
expertise,” Will explains. “In these
provide a very traditional, almost old-fashioned a s i a . b u s i n e s s c h i e f. c o m
W T PA R T N E R S H I P
BIO
Mark Van Beers Managing Director (Hong Kong & Macau)
152
Hong Kong’s one of our oldest offices in Asia and we’ve been here for just over 40 years with our track record in major and mega projects being significant. There’s currently a bid for a design, build and operate project, at the old airport, for a sports precinct of three stadiums and other ancillary facilities and we are in one of the three shortlisted bidding consortia. So, we’re currently working on that bid, six months in already and, if successful, we will then be providing services to that project for another four or five years. Corporate fit-out is an important sector of our market in Hong Kong. We’re currently working on two substantial office fitout projects for Goldman Sachs including the restack of their headquarters. We’re doing another large scale fit out for J.P. Morgan to consolidate a lot of their space into one prime building. Hong Kong Housing Authority is the public housing body and we currently
AUGUST 2018
have over 20 commissions with them that are a mixture of new builds and term maintenance work; some of them very sizable. There’s a lot of competition in Hong Kong in our market. There’d be anywhere between 15 and 20 firms that could undertake commercial quantity surveying work, maybe more, and there are probably six or eight who are of a similar size and scale as WTP. Another principal market for us here is Macau where there are 500,000 residents, comprising the entire population from young to grandparents, yet they have 30mn visitors a year. The whole infrastructure of Macau is still playing catch up with the boom in hospitality and tourism. The construction boom is primarily driven by the gaming operators who are developing mega-scale resorts. In Macau, in terms of professional consultants and construction workers, there’s a minimal resident labour
CONSTRUCTION
force to deliver the mega resorts. So, the challenge for us is getting people to be based in Macau to live there for a number of years and to cover that cost. It actually turns into quite an expensive place to build and has become one of the most expensive in the world. The construction cost, salaries and everything are higher than Hong Kong, actually, and although this market has proved successful for WTP, it comes with truly significant challenges. The boom and bust in Macau goes from one end of the scale to the other. There could be very few projects for a couple of years and then suddenly all the gaming operators will simultaneously launch their next phase of major projects. Consequently, our headcount in Macau from 2004 until today, has varied between two and 50 people and it’s gone up and down quite a few times with the cycles of work.
I guess there’s two parts to the Macau market, one being a very local market that seldom uses quantity surveyors at all with the other being the five or six international businesses who have the gaming licenses now, for example MGM, Wynn, Melco and a few more. Actually, these opportunities all start with architects and engineers designing in Hong Kong and then become a Macau project with a lot of people moving to Macau to work on the procurement and construction. Increasingly, we are also seeing demand to service projects in Taiwan, South Korea and Japan which are markets that we are looking at the potential for future expansion, each being subject to timing and a deliverable business model.
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service, that almost mimics what used to be extremely quickly, adopting fast track seen in the British market when I started my methods for those who can accept both career there in the mid-1980s. “Although catching up fast and introducing many of more recent approaches from
alternative systems and a different risk profile. But the project still needs to be delivered to budget.�
other more developed international markets, we do lag behind them in many
NEW TECH
jurisdictions where the infrastructure is not
A typical opportunity for potential disagree-
as well developed and the majority of work
ment between contractors and professional
is still executed in a highly traditional
quantity surveyors has been the quantifica-
manner; the client’s team completing full
tion. Ask several people to measure the
design before going to a hard money tender same major project, you will inevitably end 154
to builders. However, especially in the
up with differing opinions on the quantities
complex and mega projects, there are
for individual components. However, if you
more clients now with the appetite to finish
can get reliable and meaningful quantities
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CONSTRUCTION
out of an accurate computer-generated
future operations as well. The opportuni-
model this issue should be resolved.
ties with other new technologies are
“BIM (building information modelling)
immense and the data input requirements
and other technological advances, should
to maximise the effectiveness of BIM is
be embraced fully by all parts of the
coming up to speed. WTP is ready and
construction industry and should certainly
looking forward to the potential to move
not be seen as a threat to the quantity
towards real time cost planning & estimat-
surveying profession,” Will explains. “With
ing and cost management.”
readily accessible, reliable and useful quantities, experts can focus on what
NEW SERVICES
really drives the cost aspects of the
“Most of our work traditionally has been in
project. We will see in due course, sooner
the core building sectors, but we now have
rather than later, a coordinated BIM output
a flourishing infrastructure division working
that incorporates both time and cost, not
on roads, rail, airports, renewable energies
only for the construction process but for
and utilities (including water, waste, power
a s i a . b u s i n e s s c h i e f. c o m
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W T PA R T N E R S H I P
and district cooling), together with the full range of
156
“ BIM (BUILDING INFORMATION MODELLING) AND OTHER TECHNOLOGICAL ADVANCE SHOULD BE EMBRACED FULLY BY ALL PARTS OF THE CONSTRUCTION INDUSTRY AND SHOULD CERTAINLY NOT BE SEEN AS A THREAT TO THE QUANTITY SURVEYING PROFESSION” — Will Kennedy-Cooke, Managing Director (South East Asia), WT Partnership
land reclamation and other large-scale infrastructure.” Facilities management consultancy services, led from Singapore, is another more recent addition to an increasingly diversified offering from WTP in Asia that is an extension to the same services that have been established earlier within the Australia and UK businesses. “We introduced FM consultancy services into the region just over 12 months ago and have already completed several interesting commissions, both for new and existing clients. The wider market for these services is not very mature and currently nearly all of the work we’re undertaking is in Singapore and Hong Kong,” Will explains. “There are a number of international Asian-based operators that are quite sophisticated in their approach to FM, but generally the facilities management market in this part of the world is playing catch-up with the West. Sustainability is a key requirement in every sector and is of growing importance to WTP’s services offering. “Several world markets have initiated sustainability targets through a point-scoring exercise,” Will says. “We have Green Mark in Singapore and Australia has Green Star. Leed, a United States Green Building Council initiative, has wide international recognition with a high profile for many corporate clients and there are a number of other sustainable
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CONSTRUCTION
standards in particular markets.
we better with this particular system
Where there isn’t a standard in
or an alternative one? Establishing
a country, they may well adopt one
life cycle models and completing
so we have projects, for example,
whole-of-life studies are an
in Vietnam that are being done to
emerging requirement, harnessing
LEED and others in Indonesia being
both our sustainability and FM
delivered under Green Mark.
consultancy expertise.
“Originally we became involved
“We can also become involved
with how the cost achieves those
with reviews of how existing
sustainable standards in terms of the
buildings can be improved in
capital expenditure. We now look at
energy management to the
not just the cost through the initial
long-term benefit of a building
construction project, but also
owner and the occupants. We aim
examine the implications for the
to provide value in minimising waste
building’s operational life cycle. Over
through design, construction and
the economic life with an appropriate
operation. We look at how the total
planned maintenance regime, are
product can still be cost effective, a s i a . b u s i n e s s c h i e f. c o m
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but become leaner without
planning we do, to the extent that when
compromising time or safety while
we do go into new markets or provide
improving sustainability.”
new services, we have the best chance to get it right. That’s about people and
EXPANDING FOOTPRINT
network. It’s about understanding the
WTP’s expansion in SEA hasn’t
market and not overstretching our
seen the company veer too far from
management capabilities. It’s about
its ethos thus far. “Our growth, short
structuring a business that is sufficiently
to medium term, has been to stick to
flexible, agile and mobile with capability
our core competences; continuing
to both deliver to the local market
to do what we do well,” Will explains.
expectations as well as the requirements
“We’re careful about the model we
of our international clients as opportuni-
adopt for each location and the
ties evolve in different locations.”
158
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Internationally, in addition to the long-term operations that originally started in Australia and the UK, WTP has now also been operating in North America and India for a few years with the Middle East being a more recent market entry. As an international group, the geographic footprint is also growing as more opportunities arise and the business is confident of its ability to both plan and manage this expansion programme that is sure to see the company continuing to spread, and deepen its roots.
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International Commerce Center, Hong-Kong
a s i a . b u s i n e s s c h i e f. c o m
PA N PA C I F I C H O T E L S G R O U P
Pan Pacific Hotels Group redefines Asia’s food and beverage sector
160
WRITTEN BY
DALE BENTON PRODUCED BY
ALISTAIR WEST
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FOOD & DRINK
161
Pan Pacific Yangon, Myanmar a s i a . b u s i n e s s c h i e f. c o m
PA N PA C I F I C H O T E L S G R O U P
Through the advent of a leading food hygiene and safety management programme and a design guideline tailored to the future of food and beverage, Pan Pacific Hotels Group redefines the guest experience
T 162
he hotel industry is undergo-
A particular challenge, one that is
ing a transformation. With
representative of a changing indus-
technology continuously
try, is food and hygiene. For Golden
redefining the day to day lives of the
Whitehead, Vice President, Food &
guest, so too is the guest experience.
Beverage at Pan Pacific Hotels
The modern-day guest expects the
Group, one of his first tasks upon
same level of connectivity and acces-
joining the company was to work
sibility in their hotel experience as they
on and implement a global food
would in any other stretch of their lives.
safety programme across all of the
So how does a hotel group respond?
company’s operations.
As one of the most established
“Singapore, where we are based,
hotel and property companies in
has always been very focused on
Asia-Pacific with 40 properties oper-
food hygiene with high standards
ated under its Pan Pacific and
in place. There will be significant
PARKROYAL brands, Pan Pacific
changes to its current system in
Hotels Group recognises this ever
the next couple of years and we
evolving, ever challenging space as it
have to be prepared for that,” he
continues to expand its footprint.
says. “Pan Pacific Hotels Group
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FOOD & DRINK
163
Golden Whitehead, Vice President, Food & Beverage at Pan Pacific Hotels Group
a s i a . b u s i n e s s c h i e f. c o m
FOOD & DRINK
has always done very well on adhering to the highest standards and we are now ready to take sustainability to the next level. The traceability of the produce we buy and the amount of waste that’s generated from our hotels are two areas which I am particularly passionate about tackling for a start.” Whitehead brings a wealth of experience across the global food and beverage sector, having worked for companies such as the Shangri-La, Hilton Group in the UK, Hyatt in Australia and even opened up a number of restaurants in the Middle East with the Jumeirah Group. This international experience, gleaned from
“ It’s all about keeping the guest in house and staying with us,” says Whitehead. “Guest experience is crucial and outsourcing is key to enabling greater guest experience” — Golden Whitehead, Vice President, Food & Beverage at Pan Pacific Hotels Group
working in kitchens across the world for hotel groups, has provided Whitehead with the skills and capabilities required to establish a new system across a global operations. “Hygiene and sustainability has become much more of a focus in recent years, and hotels and suppliers need to work much harder than before to stay at the top of the game. Sustainability efforts require not just commitment but also an investment of resources, and that often needs to be balanced with operating costs,” says Whitehead. “When I came on board, we partnered with a company called Diversey and together launched a global programme on food safety
Marketplace, Pan Pacific Yangon, Myanmar
a s i a . b u s i n e s s c h i e f. c o m
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PA N PA C I F I C H O T E L S G R O U P
management which was rolled out
head says. “You’re asking chefs
in the first half of 2018.”
who’ve been cooking a certain
Fast forward to today and White-
166
way their entire lives to com-
head can point to a complete
pletely re-think the way they
implementation of the food safety
have been doing things for
management system across all of
years and learn a new system,
the company’s Pan Pacific and
so training and retraining is
PARKROYAL hotels, which incorpo-
absolutely critical.
rates regular audits and gap
“This extends to the suppliers
assessments for continuous
and purchasers we work with, and
improvement.
some degree of education is nec-
But of course, implementing
essary with suppliers who may not
a system across an entire global
be familiar with the new demands
operation that spans 40 hotels,
of the system. As part of our new
resorts and serviced suites
process, we now audit our suppli-
across Asia, Oceania, North
ers to ensure they recognise the
America and Europe was not
specific products and are able to
without its challenges.
meet the new requirements.”
Whitehead acknowledges
Pan Pacific has seven proper-
that there is a need for a more
ties across Singapore, which is
standardised approach to food
the main hub of its Asia-Pacific
safety and hygiene in Europe
footprint. Having multiple proper-
and Australia. In Asia, he notes,
ties across the city enables a far
there are often more complex
more collaborative approach
food preparation processes.
across its supplier base, not only
“There’s the whole training
in the training of these suppliers
element to consider,” White-
AUGUST 2018
but also on the auditing side.
FOOD & DRINK
“ We work with the suppliers to help them to improve their operations. This is where we train them and when they improve we sign longer term agreements with them moving forward” — Golden Whitehead, Vice President, Food & Beverage at Pan Pacific Hotels Group 167
PARKROYAL on Pickering, Singapore
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PA N PA C I F I C H O T E L S G R O U P
168
“There will always be demand for F&B. A good hotel, or a good restaurant, will rebuild their concept for today’s market with an eye on tomorrow’s. Then they innovate and redefine it again” — Golden Whitehead, Vice President, Food & Beverage at Pan Pacific Hotels Group AUGUST 2018
Pan Pacific Melbourne, Australia
FOOD & DRINK
ness and packaging of products. “We work with the suppliers to help them to enhance their operations,” says Whitehead. “This is where we train them and when they improve we sign longer term agreements with them.” These inspections also provide an opportunity to streamline the supply base and generate cost efficiencies where possible. Through the auditing process, Pan Pacific looks at what other prod-
Lime, PARKROYAL on Pickering, Singapore
ucts certain suppliers sell and as opposed to purchasing from 10 different suppliers, there will be
Pan Pacific looks at its leading
one or two key suppliers that both
suppliers and issues a guideline
sell the required products but also
that it measures the supplier per-
comply with the food safety man-
formance against.
agement standards.
“You really need to know the
The second task that Whitehead
whole chain,” says Whitehead.
was tasked with was the develop-
“Where everything comes from,
ment of a design guideline for all
how we receive it and then how
the hotel F&B operations across
we store, clean, cook and serve
the brands. One of the major driv-
the product.”
ing forces of this guideline has
The company also works with
been the question of in house pro-
hygienists to look further at the
duction versus outsourcing, which
supplier performance, analysing
again is testament to the modern
storage facilities, fridges, cleanli-
guest expectation. a s i a . b u s i n e s s c h i e f. c o m
169
PA N PA C I F I C H O T E L S G R O U P
“It’s all about keeping the guest in house and staying with us,” says White-
through third party delivery services. “All our new hotels still have breakfast,
head. “Guest experience is crucial and
lunch and dinner services, but we offer
outsourcing is key to enabling greater
smaller order dining,” he says. “The
guest experience.”
hotels don’t have numerous F&B outlets
With that in mind, Whitehead set out
as compared to older hotels, instead,
a guideline to redesign a far more efficient
they come with an all-day dining room
and freestanding kitchen concept. This
and maybe one bar or lounge.
wouldn’t remove the kitchen services, but
“With so much choice in the wider
tailor to the technology enabled guest
market, we’ve had to think differently.”
who would prefer to order into the hotel
Thinking differently in this instance
170
AUGUST 2018
FOOD & DRINK
is exemplified by a separate postcode
tives, the Group is investing in its people
onsite, one that guests can order deliv-
and customers by developing pro-
ery services to the hotel, therefore
grammes which are built on its DNA of
keeping the guest within the hotel but
being “Sincerely Yours” – which makes
catering to the modern day experience
sure that whatever the Group does
they expect.
comes from the heart. In always putting
All these changes are in line with Pan Pacific Hotels Group’s brand refresh, which strategy is about making impact-
their interests and needs first, the Group keeps the trust of its customers. As with any transformation, or imple-
ful changes with eyes on the future.
mentation of change, the journey never
Besides unveiling bold marketing initia-
really ends. As the industry continues to
171
Summit Lounge, Pan Pacific Hanoi, Vietnam
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172
Pan Pacific Beijing, China evolve, so too must the industry players
improvement right across the board.
and Whitehead is aware of this and recog- They are scoring better with our food nises the company must continuously
health and safety management sys-
strive for improvement.
tems and delivering a consistently
“These guidelines are working docu-
high-quality product across both our
ments. We must constantly improve the
Pan Pacific and PARKROYAL brands.”
product going forward,” he says.
Over the next five years, Pan Pacific
“Right now, I’m temperature checking Hotels Group will look to add more hotel all of our properties to see where we
properties across Asia-Pacific and
are along this journey and I’m happy
Europe and widening its global opera-
to say that there are sure signs of
tions. Interestingly, as the footprint gets
AUGUST 2018
FOOD & DRINK
173
Cinnamon Show Kitchen, PARKROYAL Penang Resort, Malaysia
bigger, Whitehead believes the food and
A good hotel, or a good restaurant, will
beverage offering will get smaller.
rebuild their concept for today’s market
The reason for this, he feels, is the rise of third-party food delivery companies.
with an eye on tomorrow’s. Then they will innovate and redefine it again.”
“You can now eat whatever you want, whenever you want it,” he says. “Hotels in the future will design smaller F&B offerings, which are super-focused on what the consumer wants from their dining – and
Sincerely Yours
not necessarily hotel – experience.” “There will always be demand for F&B. a s i a . b u s i n e s s c h i e f. c o m
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