BC Asia - July 2018

ASIA EDITION JULY 2018 asia.businesschief.com

CISCO

CONNECTING COMMUNITIES, SUPPORTING DIVERSITY

The Medical City DIGITISING THE PATIENT EXPERIENCE

NEW WORLD DEVELOPMENTS AT THE FOREFRONT OF SUSTAINABLE BUILDING

Shaping the future

PETRONAS LUBRICANTS INTERNATIONAL’S PHIL JAMES ON THE COMPANY’S ROOT-AND-BRANCH SUPPLY CHAIN TRANSFORMATION

TOP 10 LUXURY BRANDS IN ASIA

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FOREWORD

elcome to this month’s Asia edition of Business Chief! We’re excited to bring you the latest news and insight from business leaders in the exciting market of Asia and beyond.

IT isn’t just a boys’ club anymore – so says Vicki Batka, leader of software giant Cisco’s partner organisation for Asia Pacific and Japan. Batka spoke to Olivia Minnock this month about promoting diversity and why Asia is the most exciting place to be right now for technology leaders.

We also spoke to EQUIIS, an exciting tech company providing end-to-end encryption for business, to find out how staff can work efficiently across multiple locations while keeping information secure. CEO Derek Roga discussed the increasing cost of cybercrime which is set to reach $2trn by 2019, and what businesses can do to combat this threat.

You can also find out which brand came top on our list of the 10 biggest Asian luxury brands, as well as what the city of Beijing has to offer businesses on a global and local scale.

Don’t forget to check out our company profiles to find out how New World Development is building sustainable communities through the Artisanal Movement, as well as the latest news from PETRONAS Lubricants International, Sun Life Financial and The Medical City.

W

Enjoy the issue, and don’t forget to tweet your feedback to @Business_Chief!Enjoy the issue!

a s i a . b u s i n e s s c h i e f. c o m

03

CONTENTS

PETRONAS LUBRICANTS

Redefining the supply chain, shaping the future

08

Connecting communities, supporting diversity

30

Cyber solu

to cyb

58 City Focus

BEIJING

utions 46

bercrime

68 Top 10 Luxury companies in Asia

CONTENTS

80

96

Crown Worldwide Group

The Medical City

118 Mercedes-Benz Group Services Philippines

108 Sun Life Financial

Delaware North

152

134 New World Development Company

186 Cushman and Wakefield APAC

168 Sydney Motorway Corporation

PETRONAS LUBRICANTS I N T E R N AT I O N A L

PETRONAS LUBRICANTS

08

Redefining the supply chain, shaping the future Through an aggressive supply chain transformation, Petronas Lubricants International gears up for continued growth of its lubricants business.

WRITTEN BY

DALE BENTON PRODUCED BY

CHARLOTTE CLARKE

J U LY 2 0 1 8

S U P P LY C H A I N

09

a s i a . b u s i n e s s c h i e f. c o m

PETRONAS LUBRICANTS I N T E R N AT I O N A L

I

n any business, when

a range of high-quality automotive and

stripped down to its

industrial lubricants products in over 100

core, the concept is

markets worldwide.

simple – it’s a case of making a product and being able to deliver

pliers of lubricants, the company has

that product to the customer.

ambitions to continue to grow.

This makes the supply chain

To do so, PLI looked internally at how it can

function of a business a key com-

achieve this vision by generating greater effi-

ponent, and over recent years it

ciencies and looked specifically at redefining

has become a function that is

its supply chain.

spearheading the future growth in many organisations.

This is most certainly the case 10

Currently within the top 10 leading sup-

“We’re spending close to 82% of our total outlay as a business on the supply chain,” says Phil

for Petronas Lubricants Interna-

James, Head of Global

tional (PLI), manufacturers of

Supply Chain.

“ WE WANT TO BE SEEN EVEN MORE AS A TECHNOLOGY DRIVEN COMPANY BECAUSE THAT’S THE DIFFERENTIATOR” — Phil James, Head of Global Supply Chain

J U LY 2 0 1 8

S U P P LY C H A I N

“It’s a great responsibility to have so we have to be careful how we spend and more importantly, how efficiently we spend.”

With a background in chemical engineering, James has worked extensively in refineries and chemicals plants as well as in the corporate centre. James first entered the lubricants supply chain world with BP Lubricants and got a real taste for it.

“It’s a business that can really get under your skin” he says. After 7 years with BP Castrol James left to return to refining with BP. “It just wasn’t the same,” he shared. “I found myself

a s i a . b u s i n e s s c h i e f. c o m

11

PETRONAS LUBRICANTS I N T E R N AT I O N A L

missing the lubricants business terribly. So, when after a few years I was asked to head up PLI’s supply chain function I had to check myself not to bite their hand off!”

Now he can call upon his extensive experience of working within a large multinational company and, crucially, how the supply chain can support and guide and impact the success of PLI’s vision.

“Having worked for BP, it really opened my eyes to how a multinational company operates. It gave me first-hand experience in seeing the procurement of raw materials right through the entire supply chain to cus14

tomer delivery,” he says.

“What I believe is an important learning is the need for a company of the size and scale of PLI to be just as fast and nimble as other bigger players. That’s what drives us here at PLI.” As the company looks to generate efficiencies across its supply chain to operate more effectively, James believes that there needs to be the basics of efficient and effective supply chain, and awareness of other opportunities to add value to the relationships that are being built.

This, James feels, is key to the supply chain transformation so that, “customers get what they want, when they want it, when they ask for it,” he says.

J U LY 2 0 1 8

S U P P LY C H A I N

15

a s i a . b u s i n e s s c h i e f. c o m

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chain functions. Furthermore, we are redesigning our global business processes to be even more simple, automated and consistent across the globe, from the design and development stages to the final delivery of our products.

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We have a strong track record of reliability and collaboration with our customers, OEMs and end users. We are investing in our modeling and testing capabilities to ensure that we continue to deliver high-performance lubricants and fuel additives to meet the ever-increasing demands of advanced OEM hardware designs. We are also improving our competitiveness by introducing next-generation products and components, while focusing on value-added and differentiated offerings.

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S U P P LY C H A I N

As among the 10 top lubricants providers in the world, James believes that the future of PLI will

collaborations that need not necessarily be centred around raw material or service.

As with any journey or any transforma-

consist of supplier relationships

tion, there is a goal. For PLI, it is to grow

that are no longer defined by sale

and become among the Tier Two lubricants

and purchase, but relationships

player globally. James admits that trans-

that are much more collaborative.

forming the supply chain is only one of

“We’re looking beyond the

many pathways towards achieving this and

bases of traditional relation-

that the company must also do more to get

ships,” he says and are looking

to where it wants to be.

at areas for mutually beneficial

This is where the idea of thinking differently comes into play – not only is the company approaching the very nature of supply chain dif19

a s i a . b u s i n e s s c h i e f. c o m

PETRONAS LUBRICANTS I N T E R N AT I O N A L

20

“ TECHNOLOGY FORCES US TO TAKE SOME RISKS AND WORK WITH SOME SMALLER COMPANIES WHERE TECHNOLOGY MIGHT NOT YET BE PROVEN. IT’S AN IMPORTANT RISK FOR US TO TAKE BECAUSE WE’RE NOT GOING TO FIND THE SOLUTIONS ON OUR OWN.” — Phil James, Head of Global Supply Chain

J U LY 2 0 1 8

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S U P P LY C H A I N

ferently, it is asking its suppliers and even its internal staff to look at supply chain in a newer and different dimension.

This, James feels, is the only way in which the company can truly grow and prosper.

“Changing the supply chain wasn’t enough,” he says. “It’s about challenging the status quo and drive innovation. And in so doing, changing how others, such as suppliers, customers and the like, see us.”

This change starts internally. James is striving to create a much more collaborative ecosystem, connecting the buyers and the sellers and the technology people with the business to drive that innovation.

23

This collaboration is almost a no brainer as the technology teams within PLI are often in contact with suppliers in the same way that the procurement and supply chain teams are.

Couple that with the fact that the sales team are in constant contact with the technology and procurement teams, it makes sense to create a unified collaborative dialogue.

“It’s been one of the major changes so far in this journey,” says James. “What it has done is enable a far greater mix of conversation. It has helped us create better ideas and greater possibilities as a company.”

PLI embarked on this journey of change some years ago and the company can already point to areas in which this vision is starting to bear fruit. 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

“ WHAT I BELIEVE IS AN IMPORTANT LEARNING IS THE NEED FOR A COMPANY OF THE SIZE AND SCALE OF PLI TO BE JUST AS FAST AND NIMBLE AS OTHER BIGGER PLAYERS. THAT’S WHAT DRIVES US HERE AT PLI.” — Phil James, Head of Global Supply Chain

a s i a . b u s i n e s s c h i e f. c o m

25

P E T R O N A S L U B R I C A N T S I N T E R N AT I O N A L

Through the changing of that buyerseller relationship, PLI has been able

lubricants space demanded by the

to restructure the way that contracts

OEMs.

are formulated with some suppliers,

Another area in which the supply

thus highlighting

chain transformation has shown proven

PLI’s commitment to its growth ambi-

success is in the collaborative relation-

tion, which in turn encourages a

ship with technology. Technology

change mindset in its suppliers.

continues to redefine industry sectors

Another example is the

all over the world and James share,

close collaboration with a PETRONAS

2018 is the Year of Technology for PLI.

refinery in Melaka, which resulted in

26

port the evolution of the high quality

“We want to be seen even more as

the “decommoditising” of its high-

a technology driven company because

quality base oil production Etro, into a

that’s the differentiator,” he says.

higher specification Etro Plus. This

“Technology forces us to take some

has encouraged a mindset of continu-

risks and work with some smaller com-

ally redefining the capability of

panies where technology might not yet

Petronas’s base oil production to sup-

be proven. It's an important risk for us

J U LY 2 0 1 8

S U P P LY C H A I N

to take because we're not going to find

to efficiency and effectiveness,” he

the solutions on our own.”

says. “But there will always be more to

This sentiment is highlighted in the

do as the bar continues to get higher.”

construction of a new Research and

“The future is going to be defined by

Technology centre in Turin, which adds

digital space and data. It’s going to be

to the company’s existing satellite R&D

less about looking back on what data

centre portfolio across Brazil, China

has told us but more about what

and Malaysia, for example.

insights and foresights we can gain

These centres represent Petronas’ commitment to technology and attract

about our business.

“For us, it’s about being agile and

technology companies to work with

leveraging technology to connect our

PLI to innovate or create new products.

supply chains. We have to be ready

As PLI continues its transformational

today, for what tomorrow will bring.”

journey, James admits that it is a journey that will never truly end. As the

27

industry evolves, so will PLI. “As at now, we are 85% on the route

a s i a . b u s i n e s s c h i e f. c o m

L E A D E R S H I P S T R AT E G Y

Connecting communities, supporting diversity 30

Business Chief caught up with Vicki Batka to find out how supporting diversity can bolster Cisco’s business in Asia, and why other companies need to follow suit WRITTEN BY

J U LY 2 0 1 8

OLIVIA MINNOCK

CISCO

31

a s i a . b u s i n e s s c h i e f. c o m

L E A D E R S H I P S T R AT E G Y

A

s a global brand boast-

Partner Organisation for Asia Pacific and

ing over 72,000 staff

Japan (APJ), Vicki Batka says diversity is the

and a market cap

order of the day in recruiting and assigning

of $207bn, software giant Cisco retains a heavy focus on locali-

the best people possible to get the job done.

With 30 years of industry experience,

sation and supporting the

Batka joined Cisco in 2015 to run its data

various communities it operates

centre business before heading up APJ part-

in. As Vice President of Cisco’s

nerships. “It was a no-brainer,” she says. “It’s

32

J U LY 2 0 1 8

CISCO

a very diverse kind of culture, which is quite

we are really driving a diverse

unique in the tech industry.”

range of markets.”

The APJ region, spanning Australia and

Batka describes Australia as

New Zealand, India, Southeast Asia, Japan,

the “canary in the coalmine”

Korea and Greater China, is one of Cisco’s

thanks to its early adoption

most exciting markets. “We have the fast-

of technology and the cloud.

est-growing population, Cisco has a very

“Southeast Asia was so far

established footprint of locations, and now

behind they’ve been able to leap-

33

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CISCO

frog without worrying about legacy technology. It’s a good opportunity from that perspective. It’s quite different to what we see in the US and means tailoring new solutions to our mid-market customers.”

A COLLABORATIVE LOCAL PARTNER

In this way, it’s important for Cisco to establish itself as a local partner. “Each market is growing at a different pace,” says Batka, citing Asia’s oft-uncertain political climate.

“We don’t have a one-size-fits-all approach.

We actually get the opportunity to adapt and create the right offering. We have a real

35

focus on localisation rather than just translation of product. It’s about what we need to do to take that produce to market and really embrace the growth and opportunity to match market conditions.”

Cybersecurity and data privacy are key areas of interest in the region, with Cisco having recently signed a global agreement with Interpol out of Singapore. “Singapore is really a hub for the Southeast Asia region,” says Batka, “as well as Japan as it prepares for the Tokyo 2020 Olympics and Paralympics.” Collaboration with government helps establish Cisco as a trusted partner in the region, in particular with Cisco’s remote

“ In the old days, IT was a boys’ club.

Not anymore.

We’re here, and we’re different” — Vicki Batka, President, Partnerships, APAC and Japan, Cisco

working initiatives. “We’re able to bring our a s i a . b u s i n e s s c h i e f. c o m

L E A D E R S H I P S T R AT E G Y

“ We have a responsibility to go into STEM programmes and help kids even in junior schools to look at technology like coding. The future will be around applications and AI. We need to do more with industries and universities. It’s a challenge in Asia, but we’re doing as much as we can” — Vicki Batka, President, Partnerships, APAC and Japan, Cisco

36

collaboration tools in and work

to maintain these relationships. “It’s all about

with government agencies on

connecting people and influencing people to

how people can work remotely.”

represent Cisco, rather than selling it all direct.

As a global business, Cisco

Customers are so much smarter and more

brings many elements together to

prepared now. They’ve done their homework

find the best solution for any given

and they’re looking for true business partners.

partner. “We work across

Cisco has been around for a long time in Asia,

a huge ecosystem. We can take

we’re looking at two or three decades of rela-

best practise, for example from

tionships and we can build on that legacy.”

Japan in automotive manufactur-

The Cisco Partner Executive Exchange

ing, and be a piece of the solution.”

event, involving Cisco’s top 30 partners, took

As Batka highlights, approxi-

place in Singapore this year. Annually, CEOs

mately 95% of Cisco’s

meet with Cisco leadership to discuss the

businesses in the region work

future. “We’re not just talking about what

through partners and it’s her job

we’re doing at Cisco, but what we need

J U LY 2 0 1 8

CISCO

37

to do collectively, how the world is changing

Academy, while the Talent Bridge

and how we need to adapt and transform.”

programme connects students with Cisco partners. “It’s about

NURTURING TALENT

creating a pipeline, since we

“I hate to use the expression, but there really

don’t know what roles will be

is a war on talent,” says Batka. The answer,

available in the future.”

she feels, lies with both industry and govern-

Batka is passionate about

ment. “We have a responsibility to go into

supporting the next generation.

STEM programmes and help kids even

“Millenials get beaten up a little

in junior schools to look at technology like

bit,” she argues. “I’ve heard

coding. The future will be around applications

companies talk about young

and AI. We need to do more with industries

people being entitled, but actu-

and universities. It’s a challenge in Asia, but

ally I think they are willing to be

we’re doing as much as we can.” Training is

adaptable and try different

offered for budding networkers through Cisco

things.” With rapid digitisation, a s i a . b u s i n e s s c h i e f. c o m

L E A D E R S H I P S T R AT E G Y

38

J U LY 2 0 1 8

CISCO

it’s not always about knowledge but about

or two women – but not at Cisco.

soft skills like adaptability. “At Cisco, we’re

We’re benefitting by attracting

hiring people from very diverse backgrounds,

more female talent into the busi-

not just technology.”

ness and are conscious of

For Cisco, diversity takes many forms.

“Some people just think ‘women’, but for our region it’s also about ethnicity. We’re quite

having people with an opinion around the table.”

A variety of initiatives at Cisco

fortunate in Asia: a lot of women work and

work on giving people the skills

lead businesses in the Southeast Asia region

to speak up and share their opin-

in particular. But you have other countries

ions, from networking and

where they don’t. All we can do is lead by

mentoring circles, as well

example. A lot of companies talk about

as coaching for women. The

diversity, but Cisco truly believes and

Jump programme prepares

demonstrates it.”

women for leadership and encourages them to apply for

REAPING THE REWARDS

higher roles, and Women Rock-

Indeed, Cisco is not just all talk but

IT publicised women who have

takes action toward tangible results.

“We have a diverse mix of strategies to really manage and

challenged stereotypes and become successful in technology roles. In addition, diversity

embrace a diverse workforce.

is ensured both among candi-

Close to half of Cisco’s lead-

dates and on interview panels.

ership team are female.

Sometimes it’s a token one

From childcare facilities in India to flexible working conditions in Japan, Cisco will really try anything to support hardworking women. “There’s a lot we try and sometimes it’s a leap of faith, but our female employees now have attachment and loyalty to Cisco. They genuinely a s i a . b u s i n e s s c h i e f. c o m

39

L E A D E R S H I P S T R AT E G Y

and passionately want to work

half-year-old son and my husband runs his

here. While some countries talk

own small business. It really does vary in

about having quotas for females,

such a diverse region,” she adds.

I disagree with this because I’ve been working for a long time and

A SAGE MENTOR

would hate to think I got my job

Batka is also an active career mentor.

because I was female and had to

“Sometimes it’s just a conversation. Usually,

meet a quota. I want to deserve

especially when I talk to females, they know

the role I have. I think after 30

what they need to do, they just need some-

years, Cisco is definitely my

one to listen and help reassure them.” When

home from that perspective

Batka was promoted last year, Irving Tan,

because of the culture, the car-

Cisco’s then president of APJ (who is now

ing nature that we have, not just for people but the community.”

40

Cultural sensitivity is important in finding appropriate solutions.

“In Japan we have the most women on maternity leave and we offer flexibility on their return.

You can’t just have childcare facilities at the office because you can’t take a baby on the train in Japan. Other countries have state childcare which is great for them, but not how it is for everyone else.” Personally, Batka feels fortunate to be based in Singapore where domestic help is commonplace. “I don’t know if I could do my job without that support – I have a nine-and-aJ U LY 2 0 1 8

“ All we can do is lead by example. A lot of companies talk about diversity, but Cisco truly believes and demonstrates it” — Vicki Batka, President, Partnerships, APAC and Japan, Cisco

CISCO

41

a s i a . b u s i n e s s c h i e f. c o m

L E A D E R S H I P S T R AT E G Y

42

Senior Vice President of Opera-

of President of APJ for Cisco, on stage along-

tions), gathered staff around and

side the global head of partnerships, who is

presented her with champagne

also female. “They took a photo of three of us

and balloons, and she tries to

on stage and a lot of females were saying ‘I

pass this positivity on. “It’s all

was inspired by that’. We had 1,000 people at

about the fun moments. Life’s

the session and people said: ‘wow, things

tough, we work hard, we go

have changed. Where are all the men?’”

through a lot of challenges. The

Being a personal mentor gives Batka

little things, like being recognised

extra insight into the biggest day-to-day

amongst your peers, make a big

challenges women are facing. “A female will

difference.”

look at a job spec with 10 attributes and say

At a customer event in Mel-

‘I’ve only got five so I won’t be successful,’

bourne this year, Batka

whereas a male might say ‘I’ve got two

announced the promotion

attributes, I’ll go for it’. I think we see a lack

of Miyuki Sizuyki to helm the role

of embracing opportunities in females.

J U LY 2 0 1 8

CISCO

Miyuki, Vicki and Wendy on stage Sometimes, you’ve just got to go for it.

makes a huge difference. I’ve

I spend a lot of time talking to people about

never known a company with the

how to use their network.”

same community spirit.

“We’re in the best part of the

COMMUNITIES OF THE FUTURE

world right now,” Batka adds.

This focus on inclusion expands to the com-

“There are so many prospects

munities Cisco works in. “It’s part of our

across APJ and Greater China.

culture to make the world better. When

The market is shifting. Out here,

there’s a tragedy like an earthquake, we’re

we get on with things; we don’t

there, flying in equipment and getting the

play politics. Cisco as a whole is

network and phone systems up and running

trying hard to demonstrate lead-

so people can contact loved ones. Cisco

ership. In the old days, the IT

is not about showboating – it’s about genuine

industry was a boys’ club. Not

care for our people, our planet and our part-

anymore. We’re here, and we’re

ners. We have a sense of purpose and it

different.” a s i a . b u s i n e s s c h i e f. c o m

43

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TECHNOLOGY

46

Cyber solutions WRIT TEN BY

OLIVIA MINNOCK

to cybercrime

With data breaches highly publicised and ransomware threats on the up, Business Chief caught up with software company EQUIIS to find the solution

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47

a s i a . b u s i n e s s c h i e f. c o m

TECHNOLOGY

W

ith the cost of cybercrime to business in 2016 estimated at $500bn in lost revenue, and this figure

expected to increase by over $2trn by 2019, businesses both public and private are still struggling to implement secure communication. EQUIIS CEO Derek Roga is adamant more needs to be done to offer economical and intuitive solutions.

EQUIIS provides enterprises with a range of secure communications solutions so that from oil and gas companies to law firms, businesses can communicate securely and efficiently with each other and with clients, 48

protected against the ever-increasing

“The idea was dangers of cybercrime and ransomware. to provide an With a recent report from NTT Security having revealed one third of global business decieasy-to-integrate sion makers prefer to risk ransomware platform that demands rather than investing in cybersecucould provide rity, despite attacks having increased by the enterprise 350% in 2017 alone, it’s no surprise there are with a tool to so many issues with keeping data secure and communicate that EQUIIS is growing exponentially in a presecurely” viously neglected space.

— Derek Roga, CEO EQUIIS

Derek Roga, a tech entrepreneur with 25

years’ experience, previously worked in the telecom software space, working with Blackberry before founding EMS in Dubai in 2005, which involved “taking the Blackberry solu-

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49

tion to the marketplace through

go out on his own in the space and founded

mobile operators”. Within three

EQUIIS to assure clients with similar needs of

years, EMS became Blackberry’s

a secure, compliant communication method.

largest partner, representing 18%

Speaking to Business Chief, Roga was

of the company’s global sales

joined by Joe Boyle, CEO and co-founder of

and working with 105 mobile

SaltDNA, who started working closely with

operators worldwide.

Roga when the businesses formed a tech-

Roga went on to work with

nology partnership in 2017. Previously,

clients in the intelligence com-

Belfast-educated Boyle had worked for Irish-

munity. “They had a need to

based startups as well as Ericsson. “After

understand what type of com-

a number of years working in telecoms, I made

munications took place where

a switch to work in enterprise networking.” In

and if there was anything surrep-

2013, he founded SaltDNA, which was largely

titious they could identify.” Thus,

focused on “giving enterprises solutions for

in 2016, Roga was well-placed to

securer, compliant managed communication”. a s i a . b u s i n e s s c h i e f. c o m

TECHNOLOGY

Together, both entrepreneurs’ experience helped fill the cybersecurity gap. “What drove us to start the business was that over the past

“ A lot of organisations are grappling with how to do the most to ensure cybersecurity solutions are implemented with the least amount of investment” 50

— Derek Roga, CEO EQUIIS

several years there had been a significant uptick in cybercrime,” says Roga. “It’s a significant issue being faced by entrepreneurs. The idea was to provide an easyto-integrate platform that could provide the enterprise with a tool to communicate securely: secure messages, calls and file transfer, and being able to spontaneously have conference calls in a secure manner, regardless of where the team was in the world.”

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EQUIIS also offers the option

explains: “the administrator controls who has

to burn messages at both ends

access, who is communicating with them,

once read in case a device

how they are communicating and where they

becomes vulnerable.

are communicating from, ensuring the integrity of the platform.”

SECURE MARKETS

“The reason clients choose us,” Boyle adds,

EQUIIS’s closed communication

“is really that control and management of

network gives clients two options

closed user groups. Being able to do secure

to communicate. “We have our

conference calls within their own network,

own cloud network where we

not having to trust anyone else, is a key

host the solution. An enterprise

requirement for these large organisations

subscribes and we give them a

and government bodies that can’t afford to

portal through which they can

take any risks.”

manage their subscribers. It’s in

Key markets for EQUIIS include the oil and

our secure network and they can

gas industry, and the business is now grow-

deploy it across their whole

ing in the legal and government sector.

enterprise really quickly.” The

“A number of law firms use our solution,” says

second way is an on-premise

Roga. “In some cases, law firms are man-

solution which affords the client

dated to ensure the protection and integrity

organisation complete control.

of their attorney-client privilege communica-

“We take the infrastructure we’ve

tions, so they use our solution to accomplish

developed and replicate that in

that.” In terms of government, particular areas

the client’s own network.”

include police, military and intelligence organ-

How does EQUIIS’s offering

isations. “They are required, or have their own

differ from a consumer-facing

mandate, to ensure they’re getting the best of

communication service? “The

the best in regards to technology, and that the

WhatsApps and Vibers of the

solution they implement has the highest of

world enable somewhat secure

security built around it. Over the last two

communications but are not

quarters we’ve had some significant wins with

made for enterprise,” says Roga.

government agencies.”

With EQUIIS’s solution, he

In addition, business in the healthcare and a s i a . b u s i n e s s c h i e f. c o m

51

TECHNOLOGY

finance sectors is picking up.

seconds so they can use the

“We offer something unique in

solution. It’s intuitive; there’s not

this space: the ability to be com-

much training required and this

pliant, particularly around

can then broaden to a wider

regulatory requirements. In the

group of users. It’s an elegant

financial services industry,

way for us to build rapport

there’s a requirement that every

and relationships.”

transaction and communication be recorded and kept for

OPEN SOURCING SAFETY

future reference.”

In addition, Roga feels use of

A key added value for clients is

52

open-source software assures

the assurance of compliance and

users the solution is safe. “What

safety when using EQUIIS’ solu-

we have is not proprietary tech-

tion. “Clients are looking for a

nology. We use open-source

partnership,” Roga explains,

encryption: it’s tried, tested and

“And if the partner and the people

validated. Frankly, when you start

representing it can really empa-

touting proprietary solutions in

thise and understand their

the market, two things happen:

challenges, and provide real

there isn’t enough user experi-

world solutions, not hypothetical

ence to validate the technology,

ones, it becomes a partnership.”

and secondly you are opening

A consultative process also helps assure customers the solution suits their needs. “We can get a test group running within

yourself up for people to try to be the first to hack it.”

“We don’t see ourselves as cryptographers,” Boyle explains.

“ We can get the latest encryption techn then wrap up the management, cont and compliance around these techn — Joe Boyle, CEO and co-founder of SaltDNA

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53

hnology and trol, visibility nologies� a s i a . b u s i n e s s c h i e f. c o m

TECHNOLOGY

“We take the latest and greatest encryp-

more and more important across organi-

tion technology and if something better

sations and sectors. Our technology

comes along, it’s about a three to four-

should definitely be something anyone

week process to upgrade. We’ve done

who has a trusted engagement with a

that four times in five years. What makes

client where they are dealing with sensi-

us different is that we can get the latest

tive information should leverage.”

encryption technology and then wrap up

Echoing the NTT study, Roga empha-

the management, control, visibility and

sises how little organisations are willing

compliance around these technologies

to spend on cybersecurity, even in 2018.

to make it something an enterprise can

“If I’m a corporation, and I’m going to

easily buy, because we tick all the boxes.” invest say $10mn in a marketing camWith data breaches these days widely paign for example, I can see my return publicised, Boyle argues “the vast

on investment (RoI) in a very tangible

majority” of businesses and indeed cus- way. It can be measured and quantified.

54

tomers are unaware of potential dangers Whereas if I take the same $10mn and and how much data isn’t encrypted.

invest in cybersecurity, that RoI is intan-

“There’s a level of apathy. But it’s defi-

gible. A lot of organisations are grappling

nitely something we see as becoming

with how to do the most to ensure cyber-

$500bn

revenue lost from cybercrime in 2016 J U LY 2 0 1 8

security solutions are implemented with

as you can keep a record of things as

the least amount of investment.

they progress.”

“We come in offering a very elegant

In addition to voice notes, Roga adds:

solution giving peace of mind that one

“From a technology perspective we’re

part of the issue is covered – and cov-

always innovating. Our service is signifi-

ered economically.”

cantly enhanced: we’re bringing in video conferencing and communication… A

LOOKING AHEAD

lot of the enhancements we implement

An area of increasing important for the

come from direct interaction with our

future will be voice clips, says Boyle. “A

customers and understanding the land-

lot of organisations on the consumer

scape we exist in. That’s going to

side are sending voice clips and voice

happen continuously.”

notes. It’s catching on more in the UK, and in Asia and North and South America lots of people send voice clips. Not

55

only does this allow you to have an asynchronous conversation with someone, but it is actually highly compliant

a s i a . b u s i n e s s c h i e f. c o m

CITY FOCUS

BEIJ

58

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BEIJING

JING

59

connecting ancient with modern

We take a look at the Chinese capital of Beijing, which is not just the nation’s centre politically but is also making waves in connectivity and technological development EDITED BY

OLIVIA MINNOCK

a s i a . b u s i n e s s c h i e f. c o m

CITY FOCUS

T

he lively Chinese capital

China’s largest state-owned companies and

of Beijing juxtaposes

foreign commerce. Around 25mn people cur-

the ancient and ultra-

rently live in Beijing and the historically

modern as evident from the

significant city is now very much grounded in

combination of beautiful archi-

the present, and has proved a quick adapter

tecture and the pervasiveness of

to cutting-edge technology, huge proportions

technology. The spirit of discov-

of which are created by its own scientists,

ery and being at the centre of

mathematicians and engineers.

development create a climate

60

conducive to experimentation

THE INTERNET RULES

and directed toward success.

By August 2017, there were 873mn

Technology, and in particular the

subscribers to China Mobile

development of artificial intelli-

Communications, the

gence (AI), exists throughout all

world’s largest mobile

levels of life and commerce in

phone operator which is

Beijing and has a very real effect

headquartered in Bei-

on daily life in the city.

The modern Chinese capital is the centre of all transportation networks for the country as well as being the global power’s business hub and educational centre.

Beijing is also home to most of

J U LY 2 0 1 8

BEIJING

jing. Indeed, one word which characterises

more than 400 businesses dedi-

Beijing is ‘connected’. The city is well on its

cated to developing and

way to becoming a cashless society, accord-

perfecting AI technology for

ing to many observers, with financial

futuristic biometrics and even

transactions routinely handled electronically

self-driving vehicles.

and primarily via smartphone.

Facial recognition software is already in

GLOBAL BUSINESS IN BEIJING

use to facilitate not only financial transac-

Interestingly, though, China

tions, but speed human access to homes,

Mobile only ranks fifth on the list

apartments and offices, even confirming identities for service providers like taxi drivers and home deliveries. But that’s only the beginning: a new technology park will become home to

of largest companies in Beijing.

Holding first and second places, respectively, are the Sinopec Group and China National Petroleum, both oil producers. State Grid Corporation is the country’s electric monopoly and the world’s largest utility company, ranking third, and the Industrial and Commercial Bank of China holds fourth place.

Since 1980, Beijing has also become a ‘magnet’ for multinational companies of all kinds.

a s i a . b u s i n e s s c h i e f. c o m

61

CITY FOCUS

During the first six months of 2012, 13 of the world’s top 500 corporations invested in 16 new projects valued at more than $1.4bn at the time, or nearly one quarter of the total foreign investment at the time.

Today, research and development as well as marketing and procurement functions continue to be important to foreign companies with a Beijing connection.

Numerous electronics and tele-

TODAY, RESEARCH AND DEVELOPMENT AS WELL AS MARKETING AND PROCUREMENT FUNCTIONS CONTINUE TO BE IMPORTANT TO FOREIGN COMPANIES WITH A BEIJING CONNECTION’

communications companies 62

have a major presence in the city; they have had a major impact on the local economy over the past decade, flowing the equivalent of billions of dollars into the local economy.

POLITICS AND CULTURE Beijing is best known as China’s centre of political life and culture, and while it may be somewhat of a latecomer to the country’s overall economic life, it now ranks alongside Shanghai and Hong Kong as a major corporate destination, wielding great influence in financial circles. It is widely acknowledged as a haven for startups and for innovative entrepreneurs, providing fertile ground for expansion.

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BEIJING

63

a s i a . b u s i n e s s c h i e f. c o m

CITY FOCUS

‘ A NEW TECHNOLOGY PARK WILL BECOME HOME TO MORE THAN 400 BUSINESSES DEDICATED TO DEVELOPING AND PERFECTING AI TECHNOLOGY FOR FUTURISTIC BIOMETRICS AND EVEN SELF-DRIVING VEHICLES’ 64

Construction is thriving

China’s commitment to become a major

everywhere: infrastructure

player on the world stage. English speakers

improvements are a government

and teachers are welcomed in Beijing.

priority, and while agriculture remains a mainstay of the area’s

OLD AND NEW COLLIDE

employment market, urbanisation

Living in Beijing, as in most world-class cit-

has opened up myriad opportuni-

ies, has both positives and negatives. For

ties for both local workers and for

those on a singular career path, the Beijing

foreign nationals. Retail and tour-

experience can be a springboard to

ism share a growing market. The

advancement, offering a distinct worldview

large number of English schools

and a global perspective on business, par-

and teaching programs testify to

ticularly technology.

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BEIJING

65

In terms of lifestyle, however, there are

ommended, and foreign

some drawbacks. Although the cost of living

residents will find it less difficult

allows for a comfortable existence, many for-

that they might expect.

eigners find it hard to save money – perhaps

Overall, being in Beijing is akin

there are simply too many financial tempta-

to have many worlds to explore

tions. Health is a concern: air quality is not

at the same time – ancient and

the best. While developing a social and busi-

modern, familiar and mysterious,

ness network is not hard – there is even a

a lively music nightlife, history

special word for it: guanxi – navigating the

and art, high-tech and down-

huge city can be as logistically difficult as

home, urban and agricultural. It

deciding what to order on a menu. Learning

is an experience, and a place,

to speak passable Mandarin is always rec-

like no other. a s i a . b u s i n e s s c h i e f. c o m

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TOP TEN

68

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L U X U R Y C O M PA N I E S I N A S I A

10

Top Luxury companies in Asia

We took a look at Deliotte’s global list of the top 10 luxury goods companies and found out which Asian businesses and their luxury brands made the cut W RI T T E N BY

O L I V I A MIN N OCK

w w w. a s i a . b u s i n e s s c h i e f. c o m

69

TOP TEN

09

RENOWN INCORPORATED

Renown Incorporated owns the luxury brands C’est Privee, D’Urban

10

70

and Intermezzo. Based in Japan, Deloitte places the company’s

SUNGJOO D&D INC

recorded revenue at $590mn, rank-

Overall, Sungjoo D&D Inc ranked

group “mirrors that of the Japanese

62nd on Deloitte’s global list, with a

fashion industry itself”. The com-

recorded revenue of $499mn

pany also owns a directly-managed

according to the consultancy firm.

retail store business, Jib Retailing

Based in South Korea, the company

Inc, which it established in 2014.

owns the luxury MCM brand which

www.renown.com www.d-urban.com

it purchased in 2005. MCM, also known as Modern Creation München, is a leather goods brand which was founded in 1976 in Munich, Germany. The brand operates through over 300 stores in 35 countries, as well as distributing to over 200 retailers.

www.sungjoogroup.com

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ing 58th on the global list. The company dates back to 1902 and states that its development as a

L U X U R Y C O M PA N I E S I N A S I A

07

PC JEWELLER LTD

PC Jeweller owns both the PC Jeweller and AZVA brands. The Indian company has been placed

08

ZHEJIANG MING JEWELRY CO, LTD

at 44 globally by Deloitte, which puts its revenue at $1.13bn. The company started in 2005 and went public on the stock exchange in 2012. It now has around 94 stores across 74 cities.

Its luxury AZVA collection

Zheijang Ming comes in at 48

includes bridal jewellery.

globally with Deloitte putting its

www.pcjeweller.com

revenue at $843mn. It owns the luxury jewellery brand MINGR. As

www.azvavows.com

a whole, the company designs, researches, develops, manufactures and distributes its products.

Ming Jewelry is based in Shaoxing city, Zhejiang province.

www.mingr.com

w w w. a s i a . b u s i n e s s c h i e f. c o m

71

TOP TEN

06

EASTERN GOLD JADE CO, LTD

Hubei Eastern Gold Jade Company is based in Shenzhen, China, and operates primarily 74

05

TITAN COMPANY LTD

under the Eastern Gold Jade

Titan Company Ltd is based in

brand. Overall, Deloitte has

India and comes in as the 31st

awarded the company a ranking

biggest luxury goods company

of 36th globally and states its

in the world. Deloitte puts its rev-

revenue as $1.43bn. The com-

enue at $1.74bn. The company

pany is involved in all aspects

owns the Tanishq, Titan, Zoya,

from researching to retailing

Nebula and Xylys luxury brands.

products including jade, gold

Titan was formed as a joint ven-

and diamond jewellery as well as

ture between the TATA Group

mosaics, decorations and

and the Tamil Nadu Industrial

carved emeralds.

Development Corporation in

www.goldjade.cn

1984. The Titan brand mainly produces watches and key brand Zoya produces luxury diamond and gold jewellery.

www.titan.co.in

J U LY 2 0 1 8

L U X U R Y C O M PA N I E S I N A S I A

04

LUK FOOK HOLDINGS

(INTERNATIONAL) Luk Fook Holdings was established in 1991 and is a leading jewellery retailer in Hong Kong and Mainland China. Deloitte puts the company at 28 globally,

03

CHOW SANG SANG HOLDINGS

INTERNATIONAL LTD

reporting its revenue as $1.81bn.

Chow Sang Sang Holdings Inter-

As a whole, the company has

national Ltd is a precious metals

over 1,640 shops across Main-

wholesale group based in Hong

land China as well as in Hong

Kong and the holding company

Kong, Macau, Singapore, Malay-

for the Chow Sang Sang luxury

sia, Cambodia, the US, Canada

brand. Deloitte places it at 25th

and Australia. The company has

globally with a revenue of

a large-scale jewellery process-

$2.46bn. The company was set

ing plant in Guangzhou which

up as a Goldsmith in Guangzhou

has a total area of 350,000 sq ft.

in 1924 and its Mainland subsidi-

www.lukfook.com

ary remains headquartered there. Chow Sang Sang is a member of the Shanghai Diamond Exchange and has over 50 stores in Hong Kong, Macau and Taiwan with a further 155 in Mainland China.

www.chowsangsang.com

w w w. a s i a . b u s i n e s s c h i e f. c o m

75

TOP TEN

02

LAO FENG XIANG CO, LTD

Overall, Lao Feng Xiang is the 13th biggest luxury goods brand in the world according to Deloitte, which puts its revenue at $5.75bn. The company is the oldest jewellery business in China having been founded in 1848 in Shanghai. It now has around 2,700 stores across Mainland China and operates in both Sydney, Australia and Vancouver, Canada. The company produces and sells a range of jew-

76

ellery including engagement and wedding collections as well as gold, pearl, diamond and jade items.

www.lfxjewelry.ca

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L U X U R Y C O M PA N I E S I N A S I A

01

CHOW TAI FOOK JEWELLERY GROUP LIMITED

Chow Tai Fook Jewellery Group Limited, which operates its own named brand as well as the Hearts on Fire luxury brand, is ninth in Deloitte’s global ranking and the biggest luxury goods company in Asia. Based in Hong Kong,

77

Deloitte puts its revenue at $7.3bn. The company was founded in 1929 and its flagship brand is now iconic in China. The Group is currently working on improving its online-to-offline offering to become competitive in omnichannel retail. The company mainly offers high-end and mass luxury jewellery and has 517 retail locations as well as 192 counters within other outlets. As well as Hong Kong and Mainland China, the company is also present in the US, South Korea, Japan, Taiwan, Macau, Malaysia and Singapore.

www.chowtaifook.com w w w. a s i a . b u s i n e s s c h i e f. c o m

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BUILDING TRU THROUGH DIGITISATION WRITTEN BY

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CHARLOTTE CLARKE

J U LY 2 0 1 8

S U P P LY C H A I N

UST N

81

a s i a . b u s i n e s s c h i e f. c o m

CROWN WORLDWIDE GROUP

Undergoing a significant digital transformation, three leading executives at Crown Worldwide Group discuss how its diverse portfolio and customer-led approach has seen it remain ahead of the curve

I

ncreased globalisation has led individuals to frequently travel, relocate to other countries and explore worldwide employment opportunities.

Providing significant momentum for the transport and logistics sector, Hong Kong headquartered logistics company Crown Worldwide Group provides exceptional transportation, mobility, relocation, records and information management, logistics and storage services. Founded in Japan in 1965, Crown now has a global footprint with operations in the key markets. This expansion has come organically and from over 50 acquisitions.

Whilst its world mobility business remains its largest, Crown works to support corporate and private customers moving domestically or internationally, designing and implementing tailored solutions in the process. “We help customers find a home or apartment. We provide cross-cultural training to facilitate integration and productivity when

82

J U LY 2 0 1 8

S U P P LY C H A I N

83

a s i a . b u s i n e s s c h i e f. c o m

CROWN WORLDWIDE GROUP

they get to the other end. We also have support programmes to help partners integrate into a new location as they often aren't in a position to work right away, as well as provide language training services,” explains Chief Executive Officer, Ken Madrid.

“We also help them find the right schools for their children if required, as well as source hospitals and physicians. We provide compensation planning analysis to the transferee’s corporate office so that they understand the cost of living and tax impact of moving employee from A to B.” Additionally, its relocation segment 84

encompasses a one-stop-shop where Crown packs all household goods for customers and then ships, delivers and installs customer goods. The business even helps customers with visa and immigration requirements.

“We also provide these services for private individuals, which is increasingly becoming a web-driven service,” adds Madrid.

Not one to rest on its laurels, the business often has to pay expense accounts for its corporate customers, particularly those moving to countries with complex currency regulations such as China and Brazil.

Setting the highest standards in security, safety and workflow efficiency, its record management capabilities provide storage J U LY 2 0 1 8

S U P P LY C H A I N

and destruction solutions for hard copy and digital files for corporations. With over 45mn cubic feet of storage worldwide, customers can reduce office cost by moving their corporate records from a high-cost office building to a professional information management company.

“A further element in our portfolio is our fine arts logistics business, where we transport and store precious works of art – we even moved the Mona Lisa once. From auction houses to collectors, to galleries and museums, it fits in very closely with a lot of the other activities that we do,” adds Madrid.

“We concentrate our third-party logistics services in the Greater China region. We try to deal not with high-volume/low-margintype goods, but specialise in high value segments such as cosmetics, high fashion and travel retail, all things that require a different level of performance and risk.

“In general, we operate in a logistics

“ We concentrate our third-party logistics in the Greater China area. We try to deal not with highvolume/low-margin-type goods, but specialise in high value segments which require a different level of performance” – Ken Madrid, Chief Executive Officer

a s i a . b u s i n e s s c h i e f. c o m

85

CROWN WORLDWIDE GROUP

niche. We handle complex and difficult projects like hotels and workplaces.

“We hold advisory board ses-

Recently, we have invested in growing

sions with our customers and

the workplace relocations side of our

talk about where we're both

business and it is growing rapidly. We

going. It allows us to create a

have also extended to what we called

better bond and ensures our ser-

'workspace' where we are the overall

vices continue to meet our

project manager of a workplace project

customers’ changing needs.”

including design, construction and fit out."

Lastly, the company operates a wine

86

observes Madrid.

Customers expect instant information - from the location of shipments, to the status of their

storage business in Hong Kong. With

visas. Crown has therefore over-

storage located 20m underground in

hauled its systems and processes

World War II ammunitions bunkers, this

with the customer in mind.

operation is dedicated to the meticu-

“Such on-demand, personal-

lous handling, storage, long-term

ised access of information, with

maturation and ultimate enjoyment of

services such as Netflix and

wine.

Amazon, have been translated into the corporate world,”

CUSTOMER DEMANDS

explains Patrick Kenning, Global

Providing real-time information and

Director for Crown Worldwide’s

guaranteeing quality assurance to cus-

Intelligence Hub.

tomers, Crown has invested in a

“Digitisation and innovation is

systematic digitisation programme to

helping us differentiate our-

overcome such complexities.

selves, add more speed, offer

“Customer demands about the

more flexibility and provide a

seamlessness and the quality of these

personalised approach through

processes are evolutionary. It contin-

our various business models.

ues to change and put pressure on us

“The corporate customer

to invest more in the right types of

increasingly expects business-

equipment, technology, facilities etc.,”

to-business integration, for

J U LY 2 0 1 8

S U P P LY C H A I N

Ken Madrid

Chief Executive Officer Ken Madrid is the CEO for Asia Pacific, the Group CFO and a member of the Executive Board for the Crown Worldwide Group, a private company headquartered in Hong Kong.

Madrid is responsible for over 100 operations located throughout Asia, Australia and New Zealand as well as the worldwide financial management of the Group. He is a key driver of the strategic development and overall management of the company.

He joined the Crown Worldwide Group in 1991 as CFO and member of the Executive Board. In 1994, he was appointed Executive Vice President and in 2003, CEO of the Asia Pacific region. During Ken’s tenure, Crown has expanded from an Asian based regional company to a global leader with offices in over 50 countries.

87

example. They don't want to

tomers need to do and where their

come to our website and find

shipment is,” says Kenning.

information. They want to see it directly in their own HR system.”

For private customers, Crown

“Customers don't want to get home and make a phone call and reach a switchboard to speak to somebody.

has consequently launched its

They want to go on their phone, push a

Online Move Hub, where a portal

button and see everything that they

is provided to enable customers

need.

to upload documents and trans-

“Our struggle is always building a per-

act the entire end-to-end

sonalised solution, linking it with the

process of moving house using

different data sources that are available

their phone, tablet or PC.

and being able to provide this to cus-

“Here, we securely exchange documents with customers on a

tomers on demand,” says Madrid.

“We're not just a logistics company.

digital platform. We can look at a

Information is almost more important

dynamic timeline about what cus-

than the actual physical movement of a s i a . b u s i n e s s c h i e f. c o m

Building Inspiring Spaces • Interior Design • Renovation • Facilities Maintenance • Building Construction

Email : brightway6@yahoo.com.hk Phone : Mr. David Ho at (852) 9324 8600

S U P P LY C H A I N

the goods sometimes. The chal-

and corporate mobility business units,

lenge is trying to meet those

Crown has therefore implemented a

technical demands.”

number of digital tools to enhance the customer experience.

BUILDING TRUST

“Previously, when a customer relo-

It’s the global footprint, married

cated from home country to host

with a digital strategy, that has

country, we sent out a consultant. An

made Crown truly unique. Whilst

appointment would be arranged, the

customers expect high-quality

consultant would visit the property and

services, its ultimate aim

survey all household items. This

is to simplify the relocation

required the customer’s availability at

process for both private

their residence between working

and corporate customers.

hours to complete an inventory,”

“The process of relocating is one of the three most stressful

explains Kenning.

“We’ve since launched a virtual con-

life events a human can go

sultation service, which is similar to a

through, along with death and

FaceTime conversation. The customer

divorce. It's a very emotional

is using their smart device and enabling

experience. It's one thing to

the consultant to digitally capture their

move a container of televisions.

household goods, offering flexibility by

It's another to move somebody's

providing after-hours appointments

life experiences for them,”

through our regional service centres.”

reflects Madrid.

“We have had to look at how to

By fully digitising this process, Crown has reduced carbon emissions

build that level of trust with cus-

and transformed its traditional, paper-

tomers and deliver on their

led process. With all information

expectations, at the same time

captured through video technology,

providing a digital experience

accuracy levels have also risen.

to which we have all become accustomed.”

Across its private relocation

“At the end of the pilot for this initiative, we achieved a 5% increase against industry standards for the a s i a . b u s i n e s s c h i e f. c o m

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CROWN WORLDWIDE GROUP

Patrick Kenning Global Director for Crown Worldwide’s Intelligence Hub

Patrick Kenning heads the global Intelligence Hub function, which is responsible for challenging the status quo and promoting Crown’s innovation culture by encouraging ideation and exploring emerging technology opportunities that enhance the customer experience. Kenning has held several key front-line, customer-orientated roles throughout his 15-year career and has relocated internationally seven times.

90

accuracy of a traditional household

adopted a similar approach

goods survey. We have carried out

within its packing process. By

over 7,000 visual consultations to-

photographing items to guaran-

date,” says Kenning.

tee precision, a multi-language

“There’s environmental, accuracy

electronic inventory and the use

and flexibility benefits, and customers

of barcoding guarantees com-

love it because it is innovative and cre-

plete traceability.

ates a very exciting dynamic.”

“We're seeing this grow month-on-

“It’s a really important and exciting proposition to be able to

month as customers appreciate the

digitally capture everything

convenience of this new technology

about a relocation and then be

driven process. It's an exciting part of

able to follow up on any excep-

our journey when we talk about the dig-

tion and feed that back to

italisation of the relocation and mobility

operations on the other side of

business,” supports Madrid.

the world so that we can identify

Furthermore, the company has J U LY 2 0 1 8

where issues might have arisen

S U P P LY C H A I N

Chris Davis-Pipe

Group Head of Technology Chris Davis-Pipe joined Crown in 1997 and is currently Group Vice President of Information Technology for Crown Worldwide. With his global team, he manages all aspects of Crown’s information technology, supporting over 5,000 employees in more than 50 countries, across six Crown businesses.

He develops and oversees the company’s global I.T. strategy, including the implementation of company standards ranging from infrastructure management, security, business continuity and disaster recovery to procurement, deployment and support of Crown’s core business applications.

Davis-Pipe is currently overseeing a 40-member development team split between Hong Kong and Guangzhou, China, driving innovation in Crown’s client-facing solutions and the digital transformation of Crown’s line of business applications and back-office.

91

and allows us to create training exercises,” says Madrid.

Davis-Pipe, Group Head of Technology.

“Part of our digitisation journey is to improve that. We utilise two reporting

DATA DRIVE

tools to provide data visualisation.

Leveraging Microsoft Office 365

QlikView is our dashboard solution,

and associated tools to drive col-

and we use SAP’s BusinessObjects for

laboration and communication,

reporting.”

the company continually looks at

“Internally, we use predictive technol-

ongoing trends across its opera-

ogy to forecast our private business and

tions, extending these benefits

our web traffic, for example,” adds

out to customers.

Madrid.

“We have some challenges

“We can use machine learning to

around analytics in terms of data

predict what percentage of web lead

capture and ensuring we've got

inquiries turn into booked business and

all the right data points collected

this allows us to forward plan our utili-

along the journey,” explains Chris

sation and business revenues. The a s i a . b u s i n e s s c h i e f. c o m

CROWN WORLDWIDE GROUP

other side is how our corporate users use it.”

Kenning adds: “We capture a lot of data with respect to our corporate customers as a part of our proposition. We feed back a lot on service delivery and demographic trends.

Our clients typically have a selection of assignment policies within their mobility programme. We'll regularly advise and inform them of the trends that are happening within those policies. This can help them with some of their talent and diversity goals whilst keeping their business partners aligned on the activities of their mobility programme.

“We look at gender, age, family size, etc.

92

and trend some of the information in terms of what geographies they're going into and map that against assignment duration, any terminations, and repatriation trends.

“A really exciting topic is return on investment mobility,” he continues. “Helping our mobility partners to share back to their stakeholders the measured value that the investment in an individual assignment or the mobility programme actually gives back to the individual and/or the business. It’s something that we're actively working on and we’re fueling it with predictive analytics given the increasingly available tools and advancements in this space.”

Additionally, within its information management unit, the business has adopted a J U LY 2 0 1 8

“ Customers appreciate the convenience of our new system.

It’s an exciting part of our journey when we talk about the digitalisation of our relocation and mobility business” – Ken Madrid, Chief Executive Officer

S U P P LY C H A I N

93

a s i a . b u s i n e s s c h i e f. c o m

CROWN WORLDWIDE GROUP

number of programmes to further track

With over 10 processes running

information.

through its expense claim

“Our data management systems allow customers to enter keywords that

tion, invoice extraction, and file

will link to indexed boxes or media and

setups, the company has

identify information storage where

brought in a number of partners

those keywords may exist. We’re able

to guarantee best-in-class.

to then deliver those corporate memo-

94

administration, including valida-

“We used a particular vendor

ries back to an authorised customer

for robotics and trained three of

and say, ‘these files or tapes are ones

our staff, accrediting those indi-

that happen to contain those key-

viduals with a certification of RPA

words’. We keep track of who we've

so that they can now build and

delivered them to and when we will get

maintain the robots themselves,”

them back,” says Madrid.

explains Kenning.

“We also have a large programme

“It speaks to the training and

where data can be scanned, digitised

development element, but also

using optical character recognition

helps to cancel out some of that

technologies and indexed for keywords.

fear that's always evoked with

We can also redact data digitally to pro-

new technologies coming in, turn-

vide information, however customers

ing our people into robots, etc.”

might need it. It’s exciting, being able to

Thoroughly enriching the roles

connect back with customers and have

of its people, Crown Worldwide

total linkage as we go through the infor-

Group will continue to unlock fur-

mation journey.”

ther opportunities to transform the business. Situated in over 50

UNLOCKING FURTHER VALUE

countries, all of its segments

Taking its digitisation process one step

encompass different character-

further, Crown has placed significant

istics, delivering a unique edge to

investment in robotic process automa-

its overall business model.

tion (RPA), and honed initial pilots

“In the mobility business, we see

within its financial services activities.

that information is a much bigger

J U LY 2 0 1 8

S U P P LY C H A I N

part of the experience than ever

tinue to push more into digitalisation.

before. We're doing this both inter-

From integrating with the client's

nally and externally with customers

records management system, to

and seeing more investment on our

being able to provide digitalisation of

front. It links us with customers in a

records and performing complex

stronger way, especially when we are

transactions on those documents,

integrating with their HR platforms,�

storing or delivering them, we are

concludes Madrid.

meeting expectations that have

“On the records side, we will con-

never been there before.�

a s i a . b u s i n e s s c h i e f. c o m

95

DIGITISING THE PATIENT EXPERIENCE

96

With the main hospital accredited by Joint Commission International for its high-quality healthcare, Group Chief Information Officer, Brett Medel, discusses how digitisation will prepare TMC for the future WRITTEN BY

CATHERINE STURMAN PRODUCED BY

MIKE SADR

J U LY 2 0 1 8

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

ealthcare leader in the Philippines and the owner of the first private hospital in Guam, The Medical City (TMC) provides cutting-edge health services, housing centres of excellence in wellness and aesthetics, cardiovascular, cancer and regenerative medicine. The company has recently embarked on launching seven new institutes, which will cover a number of common health problems within the country.

With one flagship healthcare complex in Manila, four provincial hospitals, 50 clinic sties in Metro Manila and in select provinces in the Philippines, a clinic in Dubai and a hospital in Guam with a total bed capacity of almost 2,000 beds, TMC has looked to fully digitise its operations to adhere to its philosophy – ‘Where patients are partners.’

With over 30 years expertise in the IT space, Group Chief Information Officer, Brett Medel is set to take the organisation to new heights. Through its digital transformation, Medel will establish best practices and ensure TMC retains its position as the healthcare provider of choice.

“TMC has been serving the Filipino community for 50 years, and it is considered a legacy institution. However, it has been saddled with a traditional front and back office system. It needs to transform to cater to the needs of the

H

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The Medical City Critical Care experts Dr. Jose Emmanuel Palo and Dr. Jude Erric Cinco go over a patient’s X-ray while discussing his current condition.

a s i a . b u s i n e s s c h i e f. c o m

TECHNOLOGY

101

new generation so it has invested heavily across its digital journey to significantly improve the patient experience,” he says.

“My charter is to make TMC closer to the Filipino community as much as possible; to positively impact the patient experience and improve on efficiency by building an intercon-

A TMC vascular technician and a consultant perform a Carotid Doppler test on a male patient.

A Carotid Doppler test is a safe and painless procedure that uses sound waves to examine the blood flow through the carotid arteries.

nected ecosystem of stakeholders into a single platform.”

GIVING PATIENTS CONTROL

Empowering individuals is something which TMC will strive to achieve through open communication and the use of new digital tools.

“From finding out the treatment for a para s i a . b u s i n e s s c h i e f. c o m

ticular disease, setting an appointment with a

awareness to ultimately improv-

doctor of choice, to being informed of the

ing the health of every individual.”

choices available for the type of wellness required is aligned with our value proposition

DIGITAL ROADMAP

of ‘Patients as Partners,’” adds Medel.

Providing a digital roadmap, TMC

“We see every individual not as merely

will partner with like-minded

as a clinical patient, but a partner who

companies to drive essential

belongs to the ecosystem of wellness and

change across its operations.

health management.”

“I always tell my people and

“TMC looks after the welfare of every

my partners, ‘implementing a

individual even before they set foot in the hos-

system is not the end result,’”

pital or clinic, as we believe that

reflects Medel. “However, to me,

healthcare is all about providing premium

the criteria of success of any

quality of health; starting from prevention and

technology project is getting

102

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TECHNOLOGY

Laboratory technicians at The Medical City’s Regenerative Medicine Laboratory perform the engineering of cells and other biomaterials for the purpose of preserving, restoring, or enhancing organ function.

103

users to adopt the system.”

With the aim to bring the entire the network of hospitals and clinics under one platform, TMC has implemented a robust cloud infrastructure that can not only cope with the demands of the business, but deliver resilience across its disaster recovery strategy. It will also work to ensure scalability.

“By getting all areas interconnected, we can maximise synergies across the hospital network, without placing increased investment at each site,” says Medel.

By appointing Orion Health Inc, TMC has

“ By getting all areas interconnected, we can maximise synergies across the hospital network, without placing increased investment at each site” — Brett Medel, Group Chief Information Officer

also invested in a world-class hospital information and consultation system, which will a s i a . b u s i n e s s c h i e f. c o m

BIO

104

Brett Medel has been in the IT profession for the past 30 years where 17 years were spent as CIO of various companies in the private sector. Prior to joining The Medical City, Brett served as Group CIO of ePLDT. As Group CIO of ePLDT, he wore two hats “Internal facing” where he drives the digital transformation journey of the ePLDT, and “External facing” where he engages with the clients to help them in their strategic IT initiatives. He used

J U LY 2 0 1 8

to be the Chairman of the CIO Council of the MVP Group of companies with 30 CIO/ IT Heads of member companies worked with him to bring about synergy through various IT initiatives of the MVP Group.

Prior to joining ePLDT his experience cuts across various industries like mining, manufacturing, government, retail, and insurance. He used to be the Vice President and Chief Information Officer of Philex Mining Corporation (a member of the MVP group of companies) since 2012. He spearheads major business transformation initiatives in Philex to improve opera-

TECHNOLOGY

integrate with its other ancillary subsystems.

Nonetheless, the organisation is facing a

tional efficiency. Prior to joining Philex, he was the VP and CIO of Prudential UK and PNB Life.

His IT exposure started way back in 1987 where he joined Andersen Consulting (now Accenture) as a management consultant where he held projects here and abroad for both the financial and manufacturing industry.

Brett holds a Bachelor of Science degree in Management Engineering (Honors Program), Ateneo de Manila University.

number of regional challenges.

“We have server-based and networkbased applications, but capability is always complex,” comments Medel.

“To bring all of this into the cloud is the start of our transformation. At the end of the day, it’s all about bringing different players into an interconnected ecosystem.”

PROMOTING ACCESSIBILITY

With so many hospitals and clinics situated over a vast geography, connectivity will also present fresh challenges.

Strengthening the wi-fi within its hospitals and clinics will become fundamental for TMC to capture data across a number of platforms, particularly mobile, in order to draw insights, trends, associations, sentiments, psychographics and more, in order to develop new programmes and services.

“Our digital transformation is not just about automation, but a shift in mindset by introducing new business models to raise the bar of the customer experience. It is about strengthening the company’s value proposition to the next level,” adds Medel.

With this in mind, TMC is undergoing a significant initiative to build on its strong digital marketing strategy to bring the brand into the a s i a . b u s i n e s s c h i e f. c o m

105

digital space. This will not only boost the organisation’s foot traffic, but further its digital footprint across a number of touchpoints, such as Facebook, Twitter and Instagram.

“We have shifted our marketing resources to put equal emphasis on digital marketing as to that of traditional marketing.

This is a strategy that has never been before done in the entire history of TMC,” says Medel.

“TMC aims to top the charts 106

on customer awareness across its products and services. We would also like to get the pulse of the digital community by conducting social listening and see how we are performing as a healthcare provider in the eyes of the digital community.

“Social media and mobile apps are sources of information that we can immediately collate and process, where either immediate feedback is given or immediate action is taken. This way, customers feel that they are valued and their feedback is taken on board.”

J U LY 2 0 1 8

“ We see every individual not as merely as a clinical patient, but a partner who belongs to the ecosystem of wellness and health management” — Brett Medel, Group Chief Information Officer

TECHNOLOGY

A Wellness doctor checks on a patient inside an Executive Suite at the Wellness and Aesthetics Institute.

107

ENGAGING ALL PARTIES

Moving forward, Medel remains

By deploying IT account managers across

keen to explore new avenues and

the organisation, TMC has built a culture of

unlock further potential which has

innovation among its employees and medical

yet to be explored.

staff, where it has gained a greater under-

“TMC will be on this digital

standing from various teams on what is

journey for the next couple of

required from a digital perspective to

years,” he concludes.

enhance the quality of patient care.

“We will be on top of AI, chatbots

“We need to make everyone aware of the

and of course, cloud. However, the

benefits and the value of digital, of being a part

most important aspect is having a

of the digital economy,” acknowledges Medel.

robust community drive. This will

“Not only medical staff or users, but also

remain the focal point for TMC.”

our stakeholders. Education is essential while we undertake our digital journey.” a s i a . b u s i n e s s c h i e f. c o m

SUN LIFE FINANCIAL

108

Providing a friction experience through digitisation J U LY 2 0 1 8

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nless h a s i a . b u s i n e s s c h i e f. c o m

SUN LIFE FINANCIAL

Sun Life has undergone a significant digital transformation to provide empowering, client-centric solutions to its customers. Chief Information Officer Ritesh Sarda tells us more sia has become a hotbed of innovation. Technology is continually promoting a new dynamic between companies and clients, and the insurance industry is no exception to this significant shift.

New digital tools such as artificial intelligence, automation and IoT are disrupting outdated business models. The entrance of non-traditional players like Alibaba and Tencent are further amplifying competition.

Providing an array of tailored life and health insurance products and services, Sun Life has grown exponentially across the US, Canada and Asia, expanding its reach in Hong Kong, Indonesia, Malaysia and the Philippines, as well as housing joint ventures in India and China.

With two distinct lines, life and health, and wealth and pensions under its umbrella, Chief Information Officer Ritesh Sarda has been at the forefront of the company’s digital transformation and has streamlined the business’s dual programmes across Sun Life’s Hong Kong division.

“We have a bimodal team, where one half of my team works for the transformation programmes in legacy and digital, and the other runs our daily product launches, IT operations, data centre, information

A

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TECHNOLOGY

111

security etc.,” he says.

“I see the ‘C’ in CIO as a change agent. The ‘I’ stands for somebody who is bringing real technology innovation solutions to solve real business problems, and the ‘O’ is to enable and improve operational efficiency.”

Distinctive client experience With this in mind, the company has looked to transform its operations from the view of its three key stakeholders: financial advisors, policyholders and its internal operations.

The introduction of an iPad-

based point of sales system, for example, has sought to enable financial advisors to support clients across their entire sales journey. An app for financial advisors also allows them to view the portfolio of clients, and where they are at each stage of the application process.

“This tool also enables financial advisors to track all their new business, commission, their sales target and so on,” adds Sarda.

“For our second key stakeholder, the policyholder or client, we have launched our new mobile app. This has provided a simpler, more holistic view for clients and shows their overall portfolio with Sun Life, spanning their coverage and assets. It also gives clients a breakdown of what they have really bought 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

for themselves, their beneficiaries etc. In coming times, They can also do a lot of selfservicing, such as funds switching and withdrawing funds, submitting e-claims,” he continues.

Becoming fully committed to delivering a unique and distinctive client experience, Sun Life has also partnered with banks to provide faster payments and deliver a complete, frictionless experience.

Digital edge By placing significant investment in automating repetitive tasks, Sun Life has also sought to boost efficiencies across its operations.

“All of these things are tied with our philosophy, which is essentially around ease of doing business with clients, proactive problem resolution and establishing proactive contacts with clients as well,” says Sarda.

“We are ensuring that we capture interactions across all channels; from a client interacting with advisors, call centres and our mobile app to guarantee these functions are all in sync.

“Data is therefore a glue which is bringing holistic synergies between all these digital assets and physical channels to make it a very streamlined experience, and filters into our overall data strategy,” he adds.

“ I see the ‘C’ in CIO as a change agent. The ‘I’ stands for somebody who is bringing real technology innovation solutions to solve real business problems, and the ‘O’ is to enable and improve operational efficiency”

­—

Ritesh Sarda, Chief Information Officer 113

By ensuring that all decisions are based on authentic data, Sarda notes the importance of focusing on each source of data and, most importantly, to further understand the data. This has led the business to leverage the power of predictive analytics.

“Data is the bond between digital assets and physical channels, and the other is purely datadriven decision making, getting insight and having the right level of analytics.”

a s i a . b u s i n e s s c h i e f. c o m

SUN LIFE FINANCIAL

FACT

Sun Life has grown expanded its reach in Hong Kong, Indonesia, Malaysia and the Philippines, as well as housing joint ventures in India and China.

Sun Life has transformed its operations from the view of its three key stakeholders: financial advisors, policyholders and its internal operations.

114

The introduction of an iPad-based point of sales system has sought to enable financial advisors to support clients across their entire sales journey.

Sun Life has also partnered with banks to provide faster payments and deliver a complete, frictionless experience Sun Life’s accelerator programme has led the company to collaborate with startups across a number of digital divisions, ranging from artificial intelligence and blockchain, to insurtech and fintech

J U LY 2 0 1 8

TECHNOLOGY

Partner power Promoting innovation across its entire portfolio of services, Sun Life’s accelerator programme, has led the company to collaborate with new age startups across a number of digital divisions, ranging from artificial intelligence and blockchain, to insur-tech and fintech. Providing a real business problem to the selected startups, the company then tasks them with developing a solution.

However, whilst the number of partnerships at Sun Life is growing, such relationships remain complex.

“There are three levels of vendor partnership. The first is purely infrastructure demand. When it comes to running a rock solid stable infrastructure, we have a partnership with a tier one vendor who essentially manages our overall data centres and all the associated infrastructure,” explains Sarda.

“The second is with multiple vendors, where we essentially use them for business platforms; whether it is wealth management systems, insurance administration, CRM systems or databases etc.

“The third is around laudable innovative solutions around legacy, chatbots, artificial intelligence, point of sale and mobility.

“There are very niche solution providers, a s i a . b u s i n e s s c h i e f. c o m

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SUN LIFE FINANCIAL

116

who have a very, very niche solution to solve a particular business problem and we partner with them to basically bring in both utilities in our ecosystem.”

“It's about combining the right client experience with a frictionless business.,” adds Sarda.

“It’s pulling that business growth in a non-linear manner, which means that our operating expenses don't necessarily grow in the same tandem as the growth content.”

Such growth is, of course, in the face of growing competition.

Whilst traditional businesses in banking and insurance previously held sway, preventing non-traditional players from entering this market, the walls are being broken down. Such shifts have led to the growth of digital banks and insurers which house an entirely alternate business model.

“These startups don't have much legacy or baggage, so their ability to ramp up is pretty quick.

Non-traditional players, such as Amazon and Alibaba have J U LY 2 0 1 8

“ Data is a glue which is bringing holistic synergies between all these digital assets and physical channels to make it a very streamlined experience, and filters into our overall data strategy” ­— Ritesh Sarda, Chief Information Officer

TECHNOLOGY

shown immense interest in insurance through their recent partnerships,” he says.

“With the amount of customer data they have, the agility they have and the digital platforms they have, clearly it's massive competition knocking at our doors to disrupt our own market.

“Nonetheless, there is a lot of potential for growth and I think there are essentially three areas where I think we see the growth. Firstly, we still see a lot of growth in a high network business. Secondly, we see growth on the health insurance side, where governments have taken initiatives about enforcing mandatory health insurance. Thirdly, we see a lot of potential in digital insurance for simple products,” concludes Sarda.

“At the same time, we continue to see that our existing channels of advisors will continue to exist in the ecosystem for us to be able to sell more complicated and more financially advanced products to their clients.

Both will therefore coexist.”

a s i a . b u s i n e s s c h i e f. c o m

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MERCEDES-BENZ GROUP SERVICES PHILLIPPINES INC

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Inside room of J U LY 2 0 1 8

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e the financial engine

Mercedes-Benz Written by Laura Mullan Produced by Kristofer Palmer

A S I A . B U S I N E S S C H I E F.1C1 O9 M

MERCEDES-BENZ GROUP SERVICES PHILLIPPINES INC

A progressive and dynamic work culture is key for corporate success, and it seems Mercedes-Benz Group Services Philippines understands that better than anyone

B

OASTING ITS ICONIC silverstarred emblem, the Mercedes-Benz Tower has become a landmark in the Philippines, supporting the brand’s position in the Asia-Pacific market.

With offices in both Cebu and Clark, 120 Mercedes-Benz Group Services Philippines (MBGSP) provides finance and accounting services for the Daimler Group, one of the world’s most successful automotive companies.

Supporting esteemed vehicle brands like Mercedes-Benz, Heiko Nitsche, President and CEO, says that the firm’s services are critical for the automotive giant’s success.

“MBGSP is responsible for paying Daimler’s supplier, so we are ensuring that our factories across the world get the parts, materials and services they need.

“MBGSP also supports many of the J1U2LY0 2 0 1J8u n e 2 0 1 8

Daimler Group subsidiary companies with the production of their financial statements,” he adds.

“So even though we are just 500 of Daimler’s 289,000 employees worldwide, I think we play an important role.”

Since its creation, MBGSP has steadily matured, surpassing its initial growth target.

Serving at the helm of the company for almost seven years, Nitsche has helped to build the Daimler subsidiary from the ground up, working with peer groups and sector leaders to gain the latest industry knowhow. “It was really exciting to be the first person in the Philippines from the Daimler Group and to start something completely from scratch,” he notes.

Building a company from its very foundations is a challenge for any executive. For Nitsche, perhaps the biggest priority was finding the right

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Cebu office

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A S I A . B U S I N E S S C H I E F. C O M

VERTIV CONGRATULATES

MERCEDES-BENZ

GROUP SERVICES PHILS., INC. FOR THE SUCCESSFUL ROLLOUT OF THEIR NEW DATA CENTER IN CLARK, PAMPANGA!

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YOUR VISION, OUR PASSION

TECHNOLOGY

MBGSP Clark Building Inauguration

123 team with the right skills and attitude for the job.

“In the beginning, most of the time was focused on recruiting the right people, our pioneer team,” he explains.

“It was of the greatest importance that we found the right team with the right skills but, even more importantly, that they had the right attitude and spirit.

“I think we are unique because of our people and our corporate culture.

At MBGSP we believe in the best of both worlds. This mean you can’t copy and paste the corporate culture of our parent company into any country.

“We merged the best elements of the German Daimler culture with the Filipino culture. In the Philippines, you have world class customer service, excellent English skills, and the people are very adaptive to new cultures.

Now, we have a very young, dynamic and customer-service oriented organisation with lots of energy.”

MBGSP has a millennial-centric environment and is committed to providing equal opportunities.

Creating a progressive, open and welcoming work culture is something which Nitsche is clearly passionate A S I A . B U S I N E S S C H I E F. C O M

MERCEDES-BENZ GROUP SERVICES PHILLIPPINES INC

Heiko Nitsche, Chief Executive Officer of Mercedes-Benz Group Services Philippines A keen eye for numbers, a quest for adventure and the world’s maker of the best automobiles brought Heiko Nitsche, Chief Executive Officer of Mercedes-Benz Group Services Philippines to Asia.

Heiko who is originally from Stuttgart, Germany started his career with Ernst & Young AG as a young Executive in 1997. He joined Daimler AG as Manager for Corporate Controlling & Accounting in 2003, and as Chief Accounting Officer for Mitsubishi Fuso Truck & Bus Corporation, one of the subsidiaries of Daimler AG’s in Tokyo, Japan. He eventually established the Philippine office in 2011, after careful deliberation of this strategic location for the company. The Cebu office opened in December in 2011 with only three persons and last November 2017 MBGSP inaugurated its new office in Clark as the latest addition to the Daimler Group’s shared-service network. Currently, it has a team of 500 employees for both Cebu and Clark and is considered among the best in the field who provide finance and accounting services to subsidiaries of Daimler in Germany, the rest of Europe, Africa, Asia Pacific and the US.

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about, so much so he describes his team as “more like a family”. It’s an ethos which is well placed amidst the Philippines’ family-focused culture.

“I would say what also makes the company unique is our working atmosphere and high retention rate.

We have a low employee turnover, which is a critical success factor in this industry. Because of this, we have a higher performance and service quality because every time you lose an employee you have to find a new employee and retrain them to the same level of quality.

“I’m very supportive of open communication and believe everybody should speak their mind. We speak to each other on a first-name basis and we break down the hierarchy walls.

We treat everyone as equal without

tarnishing our roles and responsibilities and without sacrificing our respect for one another.”

By tapping into the local language, embracing the Filipino culture, and creating meaningful relationships with his employees, Nitsche has strived to create a positive work environment.

As such, he says that whilst other companies may list impressive values, they are taken to a new level at MBGSP. “Here at MBGSP we really embrace and live by our corporate values. Our values of passion, respect, integrity and discipline are a part of our DNA. “In order to showcase this, we created an annual corporate value award system, whereby our employees can nominate someone to receive an award for really displaying these values on a dayto-day basis.”

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LENOVO

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As well as selecting the right team, location was a top priority for the company. Positioned in the fastemerging Asia-Pacific market, the Philippines may have been a unique choice of location however, Nitsche believes it has been an ideal choice and one which has given the company a competitive edge.

Selecting a strategic site in Cebu, the MBGSP headquarters has become a distinctive landmark for the region.

“We chose this location because it’s very important to have the right infrastructure, transportation, and facilities,” Nitsche says. “Today we now have a seven-tonne star on the rooftop.

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It’s really a landmark in Cebu.

Everybody in the city knows the building, which is good for us as it strengthens the company brand and also helps us recruit our best talent.

“The key to our success has been how we attract and then retain the best

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CREATIVO PROPERTY DEVELOPMENT CORPORATION Admin/Accounting Tel: 032-512-6861 Mobile: +639255015223 (Sun) Mobile: +639177724010 (Globe) 4/F, Mercedes-Benz Tower, Mindanao Avenue, Barrio Luz, Cebu Business Park, Cebu City, Cebu 6000

“ It was of the greatest importance that we found the right team with the right skills but, even more importantly, that they had the right attitude and spirit” Heiko Nitsche, President and CEO

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talent,” he adds. “With our company culture and brand, which is symbolised by that star, we really can attract the best talent in Cebu. I think the proof that we are an employer of choice is the fact that the vast majority of our employees are recruited by through an employee referral programme. It shows people actually enjoy working here, and they encourage their friends to join also.”

Keen to keep up momentum, the Daimler subsidiary has also opened a second state-of-the-art Philippines office, in Clark. This not only ensures

TECHNOLOGY

The Mercedes-Benz Future Truck 2025 provides a glimpse of driverless trucks

129 there’s capacity for growth, it also means MBGSP’s services are not disrupted and always available.

“If something were to happen to our operations like a natural disaster, for instance, that could be a significant issue for us,” Nitsche explains, “therefore, we have developed a very sophisticated business continuity management programme. As part of this, we created our second office in Clark which gives us additional operational stability, security, and a world-class business solution for our global customers.”

Keen to ramp up its operations further, MBGSP has focused its investments on two pivotal areas: the upskilling of its staff and digitalisation.

As part of this, the whole Daimler Shared Service network is investing in robotics, automation and artificial intelligence, for example, to improve its productivity and efficiency.

“For our business, technology is very important. It’s crucial for the finance and accounting function, but it’s also vital across all of Daimler’s subsidiaries,” Nitsche says.

“With technology comes the A S I A . B U S I N E S S C H I E F. C O M

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opportunity to automate certain activities to free up your team. This means they can do fewer manual tasks and focus on the more interesting, valueadding jobs.

“On the infrastructure side, when we established our second site in Clark, it became a hub site for IT,” he continues. “For example, in this site, we installed a state-of-the-art server room, which houses Smart Row cabinet.

“Our Cebu and Clark site are fully integrated and capable of absorbing the load of each other in case one site fails to perform,” he adds.

On the other hand, whilst technology has been a core focus, MBGSP hasn’t forgotten its most important asset: its people.

As a result, the Philippines firm is investing heavily in development and training programmes to help attract and retain the best talent in the region.

“We have soft-skills programmes from communication to change management and stress management to leadership, which are all equally important,” explains Nitsche. “These programmes are not given arbitrarily; each employee’s career plan is carefully

designed by their respective managers together with HR.” It’s been seven years since MBGSP was first founded. Years before, Daimler has already started its Shared Service journey with Daimler Group Services Madrid (DGSM) and Daimler Group Services Berlin (DGSB). Since then, the Daimler subsidiary has gone from

“ In 2011, we started with just three employees in total. Now, we have almost 500 in both Cebu and Clark. I’m very excited for the further growth of that family” Heiko Nitsche, President and CEO strength to strength, offering state-ofthe-art finance and accounting services and more.

In doing so, MBGSP has bolstered Daimler’s position in Asia-Pacific but, not one to rest on its laurels, Nitsche believes it’s only the beginning for the firm.

“In 2011, we started with three A S I A . B U S I N E S S C H I E F. C O M

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Vision Mercedes-Maybach 6 Cabriolet ALL PHOTOS COPYRIGHT BY DAIMLER AG

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employees in total. Now, we have almost 500 in both Cebu and Clark. I’m very excited for the further growth of that family. The company still has the potential to grow, whether that’s in terms of headcount, processes, or value-added services.

“Our most important target is to have a very good relationship with our global business partners, our customers so that they earn the trust and the confidence in us,” he continues. “For our employees, we want to ensure that there is always an opportunity for successful career growth. We also want to have mature and standardised processes.

We want to integrate robotics and automation into our processes. It’s a journey which we’re currently on but it won’t happen overnight.

“As a responsible employer we create job opportunities within MBGSP and beyond in our supplier network to encourage business growth in the region.”

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NWD BUILDS ARTISANAL, SUSTAINABLE COMMUNITIES WITH WELLNESS AT THEIR CORE WRIT TEN BY

OLIVIA MINNOCK

PRODUCED BY

A L E X PA G E

N E W W O R L D D E V E L O P M E N T C O M PA N Y

WITH SUSTAINABILITY AT ITS CORE, NEW WORLD DEVELOPMENT FOCUSES ON GREEN, WELLNESS, SMART AND CARING FEATURES TO CURATE UNIQUE, ARTISANAL LIFESTYLE PLATFORMS. HEAD OF SUSTAINABILITY ELLIE TANG EXPLAINS THESE ARE MUCH MORE THAN JUST BUILDINGS

W 136

ith a sustainable future

services to create something

at its core, New World

new. This has been an opportu-

Development (NWD) is

nity to suggest a new approach

at the forefront of building communities in Asia. The

to sustainability for the company.”

Sustainability is more than an

corporation’s vision to build a

attractive add-on as other com-

better society through sustaina-

panies may view it: it is integral to

ble growth and a wellness focus

all aspects of the business.

is championed by The Artisanal

“With great support and guid-

Movement. As Ellie Tang, Head

ance from our Executive Vice

of Sustainability, explains: “This

Chairman and General Manager

brand personality values herit-

Mr. Adrian Cheng, along with the

age, nature and innovation at the

leadership team, we have the

same time. It is also about

opportunity to get involved in our

empowering each individual to

property projects in Hong Kong

craft something unique and

and China from design all the

make an impact. We also see the

way to customer experience,”

Group’s portfolio business as an

Tang says. “We have referenced

ecosystem with opportunities to

the United Nations Sustainable

connect talents, products and

Development Goals, stakeholder

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ENERGY

BIO

Ellie Tang is currently Head of Sustainability at New World Group, where she leads the Group’s Environmental, Social and Governance (ESG) reporting, risk management, environmental management and green financing initiatives. Also serving as General Manager – Sustainability at K11 Group Limited, Ellie supports Hong Kong and Mainland China property projects from planning to customer experience design. Previously, Ellie was the Asia Pacific Coordinator of the ‘HSBC Water Programme’, a $100mn global partnership which invests in freshwater and sanitation projects to improve livelihoods. She also has experience in ESG strategy development and environmental management in the REIT sector.

Ellie graduated with a Master of Public Administration degree in Environmental Science and Policy from Columbia University. She has worked in environmental and health policy research and UNFCCC Clean Development Mechanism carbon credit project advisory in the US.

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land China, NWD not only

“WE SEE BUILDINGS AS A LIFESTYLE PLATFORM: WE’RE CREATING A MODERN LIVING STRUCTURE WITH SUSTAINABILITY ELEMENTS” — Ellie Tang, Head of Sustainability, NWD

produces top-of-the-range green buildings but keeps community in mind. “Urbanisation is integral to what we do – we’re building communities,” says Tang. “This isn’t just a slogan; it’s exactly what governments around Asia are promoting among building developers and what our dense cities need to be sustainable.”

“In the past, the focus was on building specification and energy efficiency, but now governments are looking into a wiser, more

views and our business priorities

efficient way of planning and

to set the 2030 vision for the

allocating resources. They want

entire group.”

to see a holistic development

The company’s New World

blueprint with mixed-use facili-

Sustainability Vision 2030

ties outlining how we will boost

focuses on four pillars: Green,

the local economy, improve con-

Smart, Wellness and Caring.

nectivity through low-carbon

“We’re now setting policies and

transport, promote smart cities

targets to drive those down to

through technology adoption and

customer experience across our

include community-level green

groups’ businesses. It’s an excit-

features.” That’s exactly what

ing journey,” Tang adds.

NWD offers, and it’s vital given around 70% of the company’s

BUILDING COMMUNITIES With rapid urbanisation taking over both Hong Kong and main-

business is in mainland China.

In Hong Kong, where density and land scarcity is higher, NWD a s i a . b u s i n e s s c h i e f. c o m

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GZ K11 – Interior

GZ K11 – Exterior

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has innovated new project

FROM VISION TO ACTION

designs and features that bring

NWD houses a diverse portfolio

its building users closer to nature,

ranging across property devel-

whether through a sky garden

opment, investment and

with renewable energy installa-

management; infrastructure and

tion at SKYPARK, a residential

transportation; telecom; hospi-

re-development in Mongkok; or

tality; healthcare; education and

a family-friendly sculpture park

retail. This diverse focus enabled

at Mount Pavilia, a multi-tower

the launch of the first ever Art

residential project in the suburbs

Mall in Hong Kong by the K11

of Clearwater Bay. Both of these

‘museum retail’ brand a decade

projects have been certified to

ago. Since then, the brand has

the US LEED (Leadership in

also added a workspace offer-

Energy and Environmental

ing: K11 Atelier. The K11 brand

Design) Building Standard Gold

integrates art into buildings,

level status.

offering a unique user experience, and was pioneered by Adrian Cheng who is a third-generation member of NWD. Tang explains that the Art Mall

K11 Atelier

was a novel concept when it opened in 2009. “Mr. Cheng is an international art collector and a cultural entrepreneur. His vision has always been ahead of our time. The ‘museum retail’ idea of K11 has been very successful as seen in the increasing focus of our peers on art and culture in their property projects.”

The mall was launched at a a s i a . b u s i n e s s c h i e f. c o m

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K11 Natural 142

time of increased consumer

“HAVING THAT BESPOKE, EXCLUSIVE CULTURAL EXPERIENCE IS A PROMINENT TREND FOR MILLENNIALS” — Ellie Tang, Head of Sustainability, NWD

spending power in the region, as social media promoted unique online personas and shoppers craved a selfie-worthy experience. “Having that bespoke, exclusive cultural experience is a prominent trend for millennials.

We keep pushing the K11 museum retail concept for that reason.”

“It’s not just about art and digital, but sustainable products at the core,” Tang adds. Often, small luxury or wellness companies have pop-up kiosks at K11

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locations. “We’re seeing a rise in favour of wellness and greenthemed products. In 2016, we launched K11 Natural, an experimental merchandise zone in our Hong Kong Art Mall, to cater to this growing customer demand.”

A consumer market study shows a 40% increase in Chinese consumers’ preferences for anything branded with wellness or health between 2016 and 2017.”

Three years ago, NWD pioneered The Artisanal Movement, 144

favouring the human side of large-scale development. “We want our employees and external stakeholders to think of themselves as artisans: they can create something memorable, unique

Salisbury Garden - Green Wall

and lasting,” Tang continues.

“Every building we create has a unique design and we place ourselves at the cusp of heritage and modern. We aggressively adopt technologies while also preserving heritage and building human relationships in the communities we develop, with sustainability as the underlying spirit of everything we do.”

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Mount Pavilia Aerial View

ENERGY

A LIFESTYLE PLATFORM NWD was the world’s first company to achieve the WELL Building Standard Pre-certificate on the King’s Road Commercial Re-development in Hong Kong.

The same building has achieved Video: The Pavilia Bay –

a LEED BEAM Plus green build-

Beyond the horizon

ing standards Platinum level at the pre-assessment stage. “This sets the tone for the future,” Tang says. “It’s not just ‘green’: we

GZ K11 Exterior

strive to build healthy buildings with the best air, natural light and water quality. Research shows healthy buildings result in a happier, healthier and more productive workforce. Caring about the individual is integral to The Artisanal Movement. We see buildings as a lifestyle platform: we’re creating a modern living culture with sustainability elements.”

The WELL standard, which advances health and wellbeing in buildings globally, ensures buildings are regularly re-certified. “We plan to build more certified green and healthy buildings,” says Tang, adding that while this comes at a cost, the a s i a . b u s i n e s s c h i e f. c o m

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“IT’S NOT JUST ‘GREEN’: WE STRIVE TO BUILD HEALTHY BUILDINGS WITH THE BEST AIR, NATURAL LIGHT AND WATER QUALITY. RESEARCH SHOWS HEALTHY BUILDINGS RESULT IN A HAPPIER, HEALTHIER AND MORE PRODUCTIVE WORKFORCE. CARING ABOUT THE INDIVIDUAL IS INTEGRAL TO THE ARTISANAL MOVEMENT” — Ellie Tang, Head of Sustainability, NWD 146

The Forest Interior (Urban Re-development Project) J U LY 2 0 1 8

ENERGY

rewards are exponential and investors are supportive. The company recently raised Hong Kong’s first ever Green Loan for the King’s Road project. “The wellness proposition gets people more excited than raising awareness on climate change, but the building design and operation requirements are generally similar.”

Wellness isn’t just promoted within NWD’s buildings. “We established the first sports and wellness academy: the

Mount Pavilia Application of Renewable Energy in The Project

Hong Kong Golf and Tennis Academy,” says Tang. In addition, the Group’s flagship community programme, New World Springboard, offers seven years of professional sports training, mentoring support, and volunteering opportunities to underprivileged students, with an aim to promote whole person development and improve social mobility. NWD also sponsors the annual Harbour Race, a traditional swim across the iconic Victoria Harbour in Hong Kong.

VIRTUALLY PERFECT

Salisbury Garden – Facilities

With preservation of heritage at the core, NWD uses cutting-edge technology to create green buildings for the smart cities of the future. BIM (building a s i a . b u s i n e s s c h i e f. c o m

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N E W W O R L D D E V E L O P M E N T C O M PA N Y

information modelling) software enables planners and designers to virtually plan buildings by creating 3D models which can be visualized. “On the computer simulation, you can make many adjustments and play around with designs before the actual building process,” says Tang.

“This reduces abortive works.

It saves time; construction, environmental and health costs; occupational health and safety risks. Issues are flagged 148

promptly and the software identifies what needs to be fixed and how long it will take.” BIM also helps facilitate overall building management post-construction.

D‧PARK – Event

NWD also launched the first virtual reality (VR) apartment viewing app in Hong Kong last

as a community-centric living

year. While customers can still

culture curator? “Quality speaks

look at sales galleries and show

louder than anything else,” Tang

flats, the app allows users to

states. “Everything we introduce

check the layout of an apartment

from now on must live up to our

remotely, and VR helps buyers

vision. We will try to increase and

design their own interior.

strategise our communication both internally and externally.”

A SUSTAINABLE FUTURE How will NWD maintain its status J U LY 2 0 1 8

Adrian Cheng’s leadership of The Artisanal Movement is key to

K11 HK - Movie11 – Community Engagement Event

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Hong Kong Golf & Tennis Academy – ‘Future Stars Programme’

D‧PARK - M.I. Learning Zone

a s i a . b u s i n e s s c h i e f. c o m

N E W W O R L D D E V E L O P M E N T C O M PA N Y

this internal development. “We offer extensive learning and development programmes for our employees and even their families. Across staff levels, there are opportunities to learn new skills, take ownership and collaborate with different departments and subsidiaries to tap into our internal strengths and create synergy,” says Tang. “We will continue to leverage our strengths as a group and put out quality products and services to achieve 150

our goals as a culture curator.”

Externally, the company will continue to build healthy relationships. Suppliers, including BCG Group Ltd and Kohler Asia, have more than just a one-way relationship with NWD. “Kohler, our washroom facilities supplier, is involved in a lot of our green, sustainable and WELL building projects,” Tang explains. “Now we have a clear vision, apart from just buying products and services we do share our future direction with suppliers to see if they have any innovative proposals, like J U LY 2 0 1 8

ENERGY

special features or new products.”

Innovation is also encouraged inside NWD, with an annual Incubation Circle competition which not only takes employees’ ideas on board, but offers them a platform and encourages them to take ownership. “Employees are encouraged to pitch projects based on specific categories ranging from profits, innovations, health and safety and environmental protection to new business. We can identify opportunities within our business and suggest how we would do things better.”

“As we go along and develop more concrete targets and specific actions,” concludes Tang, “we want people to see that sustainability runs through the veins of New World products and services.”

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Procurement perfection at Delaware North

Just over a century old, Delaware North is among the most admired hospitality groups in the world. Its Australian operations are diversifying, and reducing procurement complexity is catalysing that process Written by John O’Hanlon Produced by Glen White

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port is big in Australia and Delaware North has been a big name in Australian sport since the foodservice giant entered the ANZ market more than 30 years ago.

The global company has remained in the ownership of the Jacobs family right through its history, and that culture of family, entrepreneurship and flexibility continues to shape an ethos which is best summed up by Chairman Jeremy Jacobs’ remarks in the 2017 Annual Report: “Our centennial was a great reminder of the core principles and values-driven approach to business on which our company was founded. Since the early days of peanuts and popcorn, Delaware North has thrived on the strength of our industry and client relationships.

Trust, integrity and character are values that we hold dear to our family, and they are the same values we have instilled in our company. We know that the strength of our partnership with clients and colleagues is the key to our continued growth and success.”

This emphasis on partnership is the key to the supply chain transformation currently being led within the Australian business by Adrian J U LY 2 0 1 8

Adrian Lorenzin Adrian Lorenzin

Adrian Lorenzin is Director of Procurement of Delaware North’s Australian and New Zealand operations.

A career beginning in airlines in the late 2000s it didn’t take Lorenzin long to move from his educational focus of finance into the world of procurement.

A number of years were spent working at Qantas, the country’s largest airline, supporting the procurement efforts in the corporate services category. From here he moved into the procurement team at Coles, the nation’s second largest supermarket, specifically focusing on logistics sourcing. This gave rise to a number of moves made whilst at Coles culminating in his role as Head of Central Logistics, overseeing a team of 16 professionals supporting the central operations of Coles’ $1.2bn-plus logistics network.

Lorenzin has managed a vast array of procurement activities with values ranging from $5mn to $200mn across the corporate services and supply chain categories. He is an advocate for the procurement profession in Australia and supporting those who see it is a viable career to drive the success of Australian businesses.

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“We expect our revenue will grow significantly in the next three years: procurement will play a major role in that” – Adrian Lorenzin, Director of Procurement

a s i a . b u s i n e s s c h i e f. c o m

AUSTRALIA’S MOST LOVED IMPORTED BEER^ BRAND HAS A NEW VARIANT AVAILABLE NOW ^Corona is the #1 imported premium beer and represents 68% of total premium imported pack beer sold in on premise. IRI AU liquor weighted MAT March 11 2017.

S U P P LY C H A I N

Lorenzin, its (relatively) new Director of Procurement. Lorenzin brought with him extensive experience in the airline and retail industries, most recently with the country’s second largest supermarket chain Coles, but with less knowledge of hospitality. However, he and the leadership that appointed him thought this an advantage rather than a drawback. What was needed was a fresh approach.

The Australian business is at an interesting stage. Having established itself firmly as the leader in sports hospitality services, with Melbourne & Olympic Parks (home of the Australian Open), Melbourne’s Etihad Stadium

and the Sydney Cricket Ground in its portfolio, it expanded its travel hospitality services business, with an increased presence at the majority of capital city airports around the region. In 2009 it acquired several iconic Australian resorts including Lizard Island, Kings Canyon Resort and El Questro Resort.

Growing critical mass Now the business is in growth mode, having just purchased its first two pubs in Queensland.

Thus far Delaware North had not owned any pubs or purely gaming a s i a . b u s i n e s s c h i e f. c o m

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operations in Australia, though it’s big in gaming in its other markets such as the US, explains Lorenzin. “The pubs and gaming sector is where we see significant growth coming from and we will look to expand our portfolio in the next few years.” He sees his role as to extract value from the A$100mn current annual spend by developing the procurement strategy and applying that to the growth business: “We expect our revenue will grow significantly in the next three years: procurement will play a major role in that.”

With pubs set to become a major business unit, Delaware North will be moving into a very closely regulated and compliance-based environment.

This is an expansion that will need to be very carefully managed, though it will be a perfect marriage between the food and beverage core business and the gaming market. Exciting times for Adrian Lorenzin and his team, for whom this is about much more than scaling up an existing operation.

In August 2017 he joined a business that was prepared for change. “I have always been mindful that my procurement strategy needs to fit J U LY 2 0 1 8

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“One of the best things we can give

this business from a procurement perspective is confidence and commitment in their cost base” – Adrian Lorenzin, Director of Procurement

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into where the business is going rather than have the business fit into my procurement strategy. The basis for the procurement transformation started at the most senior levels with our executive team – they saw some opportunities and green shoots in areas that they scratched in the twelve months before I arrived.” Nevertheless, supply change management was not as mature at Delaware North as he had been used to at Coles or Qantas – multi-billion-dollar companies with a highly advanced procurement function – and very commercial in the way that they go about managing suppliers.

But these large ASX companies could also be onerous. “I came in with the view of bringing the best of what I have done previously in bluechip environments while avoiding the things I had identified as slowing those cultures down. The environment that I identified when I came here was a traditional supplier model.

We’d engage suppliers without any long-term commitment, negotiating discounts and the like, but with very little true marketing engagement.”

The first partnerships Lorenzin forged were internal. After launching

a three-year analysis of value in every corner of the supply chain (the first pillar of his transformation), he looked at how procurement engaged with the operational side of the business. This necessitates a broad cultural change, he believes.

Rather than making sourcing decisions centrally and asking the management of sites to live with them, Lorenzin started to invite operations to make their preferences known. “There was an opportunity to increase two-way dialogue and give operators the chance to share input. I was saying to key operational partners, ‘You will have a voice more than you’ve ever had. However, it will be structured.’ We have been very clear as to what we will be sourcing from the market and where we will be seeking their input.”

Procurement, he says, is the magnifying glass that draws together the expertise across the business, concentrates it and obtains the best outcome for the business. The Pareto rule applies: 80% of the total spend 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

“I think I know

the route to the summit, but before I tackle that I want to get the business to base camp one” – Adrian Lorenzin, Director of Procurement 163

is on things that do not require local flexibility; 20% may be on things that really need to be locally sourced.

Take wines for example: “We run bars in airports across Australia and we always need to have local wines represented. Often we’d look to the nearest winery – but the largest wine supplier that we work with owns 96 Australian wineries! We are working with a strategic national partner that can satisfy local needs but operations don’t know that because they don’t have the bird’s eye view. Procurement’s job is to create a commercial framework

for the management on the ground to satisfy their local requirements with our national partner.”

There are of course occasions when nothing beats a local supplier. For instance, El Questro offers barramundi, a popular fish caught in northwest WA at Wyndham. Lorenzin knows he will never replace that with a less expensive frozen alternative, despite the potential cost savings. “We must always empower operations to support local industries. a s i a . b u s i n e s s c h i e f. c o m

The worst thing we can do is create policies and procedures that stop people from being flexible to the customer base.”

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Founded in

1915

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The future state For now technology is taking a back seat to structural and cultural change. The current stock control management (SCM) ordering system holds all the SKUs pricing information and supplier data.

“The system works well and with 100% compliance. It is the only way you can order anything within the business.” Lorenzin says he would like some refinements, but these will be addressed in a later phase of the transformation.

For now he wants to reduce the SKU list to a manageable size and reduce its complexity, and at the same time reduce the supplier ‘tail’. At the head of the list of strategic partners are the sponsors of major sporting events. High profile food brands and franchises are represented in the Delaware North portfolio through license arrangements.

At this stage the extent of the

S U P P LY C H A I N

About Delaware North

165

procurement relationship is the use of Delaware North’s systems to do the ordering. There is little upside in this arrangement, Lorenzin says, but there could be a lot more. “There’s potential in the future to partner with these companies and make use of the synergies that exist: there is a real case for forming a buying group with others in the market. An alliance of strong brands that are purchasing in comparable volumes to our own would make us a very significant entity for the supplier market to consider.”

Starting with the top categories, the team he has been hand-picking will

systematically go through the suppliers, driving value where it can be most easily achieved.

“I have made a commitment to the business that we will reduce like-for-like costs by between 5% and 10%. One of the best things we can give this business from a procurement perspective is confidence and commitment in their cost base.”

In the second phase, Lorenzin will look to value opportunities in the logistics operation, through collaboration with partners. By far the biggest transport operator a s i a . b u s i n e s s c h i e f. c o m

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into all operations is their national food distributor, but there are many smaller suppliers, and this can create problems, especially in a city. For example, when there’s a big game at the Etihad Stadium there could be up to 20 deliveries in a day coming through choked streets.

“There’s so much room for optimisation here,” says Lorenzin. “The second wave of transformation may well see consolidation in our delivery service with just one temperature-controlled delivery and one ambient delivery each day. That is achievable because we have geographical critical mass – at Melbourne for example where we have the airport, the stadium and the tennis park – to run consolidation into those operations.”

The measured approach is very much in accord with the CEO and Lorenzin’s colleagues in the senior leadership. We could look to go more quickly and land this all in the first phase of the strategy, but we’ve been in this market for more

than thirty years and will be around for decades to come. I wanted to take people on the first journey of procurement by which we are rationalising the supplier and SKU bases and forging longer term relations with strategic suppliers: then I want to overlay that with the right technology platform and the right logistics network.”

Always fond of colourful analogies, Lorenzin likens the procurement transformation to climbing Everest. “I think I know the route to the summit, but before I tackle that I want to get the business to base camp one. Getting that far has its own rewards and it is achievable. I consider myself lucky to have been able to hire an excellent team and to have the support of an executive team that gives me the autonomy I need.”

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Written by John O’Hanlon | Produced by Glen White

How Sydney Motorway Corporation is leveraging AI, analytics and the cloud to deliver vital infrastructure projects

S Y D N E Y M O T O R W AY C O R P O R AT I O N

Most companies are moving their IT to the cloud, but very few completely depart from on-premise systems. That’s why Sydney Motorway Corporation is different, agile and demonstrating the workforce of the future as well as tomorrow’s infrastructure model

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L

ike most large and growing cities, Sydney faces problems of congestion, but it seems that for a variety of reasons it is worse off than similar-sized cities globally. A report just out from the Property Council of Australia says Sydney’s brand is “better than the product”, a major reason being that it has worse congestion than San Francisco, Montreal, and Phoenix, for example.

However, Sydney is also leading the field when it comes to devising ways of keeping the city moving.

In August 2014 the New South Wales government created the Sydney Motorway Corporation (SMC), a private company with the J U LY 2 0 1 8

Shaune Rosser CIO Shaune Rosser is an information technology professional with more than 20 years’ experience in strategy development, planning and delivery of large-scale business and technology transformation initiatives. He has a strong track record of delivering results and driving efficiencies to optimise business processes and systems.

Rosser has worked across the public and private sectors in Australia and internationally, successfully leading IT mergers for government agencies, shared IT services for large government clusters and the implementation of market leading IT as-a-Service operating models. His experience in working across diverse and complex environments includes key transformation roles with NSW Health and the Commonwealth Bank of Australia, as well as consulting roles in the finance, government, university and clinical innovation sectors.

TECHNOLOGY

“Our first goal was to create a commercial construct built on business outcomes as opposed to the traditional SLA model” — Shaune Rosser, CIO 171

a s i a . b u s i n e s s c h i e f. c o m

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SYDNEY MOTORWAY CORPORATION PARTNERS WITH TECHNOLOGYONE TO DRIVE DIGITAL TRANSFORMATION FOR $16B INFRASTRUCTURE PROJECT Sydney Motorway Corporation (SMC) has been tasked with building and financing Australia’s largest transport infrastructure project, WestConnex, involving the widening and extending of the new M4, duplicating the new M5 and connecting the two motorways to provide a underground link that will create a free-flowing western bypass of Sydney’s CBD. Setting up a new business to manage this multi-billion-dollar project in a short timeframe meant SMC had little resources to spare on implementing the supporting business systems. It didn’t want to own or maintain the IT infrastructure required to run its business, instead opting for a zero IT footprint in-house to deliver flexibility, cost competitiveness and scalability.

Where some would see insurmountable restrictions, the team saw an opportunity to do more with less and proceeded to lay the foundation for a smarter future, opting for a Software as a Service (SaaS) solution with Australia’s largest enterprise SaaS provider, TechnologyOne. SMC’s Chief Information Officer, Shaune Rosser, said the partnership with TechnologyOne has enabled it to focus on its core business, not IT. “We didn’t want to own or maintain the software, we just wanted to be able to consume the services. We wanted to have evergreen technology, with the upgrades managed and supplied, so it’s always current,” Rosser said.

TECHNOLOGYONECORP.COM/TRANSFORM

“Our people can access the TechnologyOne software from a URL, from any location knowing that with multi-factor authentication it’s safe, secure and reliable to do so. Our people can get the information they need, where and when they need it.”

Mr Rosser said SMC went to market looking for a solution that would not only meet its IT requirements, but also its complex financial management and reporting needs.

SMC now uses TechnologyOne’s enterprise SaaS solution to deliver efficient and effective operations, covering financial management, project accounting, reporting and analysis, and contractor management.

“Since going live with TechnologyOne we’ve been able to reengineer business processes to align with best practice and operate as efficiently as possible. We’ve been able to reduce and simplify workflows, and have moved away from traditional paper-based processes to completely electronic,” Rosser said.

SMC’s Deputy CFO, Bill Hartnell, added that the business has better integrated project and financial accounting, streamlined reporting and strengthened budgeting – all essential in effectively managing the $16 billion WestConnex project.

TechnologyOne is Australia’s largest enterprise SaaS provider. Powering many of Australia’s largest infrastructure projects, the enterprise SaaS solution is available on any device, anywhere, at any time.

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brief of investing and financing major road projects – in particular the new company was commissioned by the NSW Roads and Maritime Services to deliver and finance WestConnex.

As Australia’s largest transport infrastructure project, the A$16.8bn WestConnex project will play a crucial role in supporting the city’s expected population growth and will get Sydney moving again.

WestConnex will be the central spine of Sydney’s motorway network, providing a long overdue underground link between the M4 and M5, creating a seamless motorway without traffic lights.

New M4 tunnelling

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At around 30km in length, WestConnex comprises six projects: the M4 Widening (completed 2017); the M4 East (opening 2019); the upgrade of the King Georges Road Interchange (opened December 2017); the New M5 (open to traffic in early 2020) and the M4-M5 Link which will be delivered in two stages, the mainline tunnels and the Rozelle Interchange and Iron Cove Link, with the entire scheme completed in 2023.

WestConnex is a critical part of Sydney’s integrated transport solutions to tackle congestion

TECHNOLOGY

and increase productivity and will go a long way to catch the Sydney product up with the brand.

ASSET LIGHT, DELIVERY STRONG

So, SMC has been, and is, one very busy company. Spinning it out as a separate entity signalled a desire to deliver these projects in a different, non-traditional, agile way. Clearly the key to this would be how ready it was to use the best available IT systems, and adopt them as and when they were developed. To deliver this vision SMC recruited a suitably young and enthusiastic CIO. Shaune Rosser has more than 20 years of achievement

behind him but this was his first CIO appointment, so it says much that he was named in the 2017 CIO50 Awards as one of Australia’s top 50 technology and digital chiefs who are influencing rapid technologydriven change and innovation across their organisations.

Unencumbered by the usual burden of legacy systems, he was not about to acquire any. SMC has no IT assets of its own, and has invested zero dollars making it, which Rosser thinks, is unique globally. It was a green field (how many CIOs must envy him) and he

‘The Workforce of the Future’ Sydney Motorway Corporation - Shaune Rosser CIO

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TECHNOLOGY

was able to establish a 100% as-aservice model for the company.

“That gives us the flexibility to ramp up and ramp down as the business demands, and that is the beauty of system where we simply consume all of our services, bar none.”

The model means that the business is flexible both in systems and in people. He doesn’t need a big team to manage the projects, but can bring creative specialists and highly skilled data analysts as they are required. “It’s the workforce of the future; a contingent workforce.

We have embedded skilled people in the functional teams too.” This results in a collaborative relationship between IT and business units like finance, operations and HR: it also fits more easily than might be expected with a business whose core skills are engineering, planning and construction. In this business they’re well used to being part of a ‘contingent workforce’, Rosser says. They like people to come in, get their feet on the ground quickly, deliver the goods.

It’s also easier for the people in SMC and its contractors to access

“ It’s the workforce of the future; a contingent workforce” — Shaune Rosser, CIO

177

data and documents in a cloud or ‘Technology One’ environment.

Microsoft tools play a big part in delivering this through Enterprise Mobility Security and Office 365 in a solution developed in partnership with local IT systems experts. This, along with other tools from the Azure suite and SharePoint, manages mobile apps and devices while safeguarding corporate data, allowing secure collaboration. It also enables virtualisation programs.

Centrally managing access and security has also ensured the a s i a . b u s i n e s s c h i e f. c o m

S Y D N E Y M O T O R W AY C O R P O R AT I O N

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IT department is freed from tackling end user device issues. Through the as-a-service model, Rosser has achieved spectacular optimisation of the IT service desk, responding to and resolving 100% of requests within the stringent parameters set down in the agreed service level agreements (SLAs). “This was our first goal – to create a commercial construct built on business outcomes as opposed to the traditional SLA model. If I have an outage at 3.00am on a Sunday there’s probably time to resolve it but at 9.00 on a Monday it’s a different matter.

J U LY 2 0 1 8

We may have sound contracts but if everybody is not collaborating we have real problems. It’s this commercial construct that allows all our partners to work very well together and it has maintained that operational excellence. We have made great strides in cost effectiveness but it’s also about mobilising the business and making sure it’s always available.”

However, before the basic architecture could be constructed, business critical data and records had to be captured. When SMC

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was set up, all the data it was going to need, the financial information and the HR records were embedded within the SAP environment used by government departments. “We had to transfer those data assets and migrate our email systems in a very short space of time,” he explains. “Initially we had to separate our data and information within the existing government departments, then extract them and move them to the new business.”

The as-a-service system has enabled SMC to create an evergreen environment in which all of its services

are constantly updated and patched (Rosser offers the analogy of one’s smartphone) to make sure the business is always using the latest and greatest and most mature version of the software.

WELCOME TO THE SMART NEW WORLD

A recent independent assessment confirmed that SMC’s operating model gives the optimum balance between cost control and efficiency. “One advantage is that we can quickly shrink our head 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

count and with it our costs,” Rosser says. “Again, if we want to implement new capabilities we are quickly able to deploy them. And we can be strategically focused rather than operationally. That is where we start talking about AI and machine learning and predictive analytics and building a digital engineering capability.”

The standard methodology for making a business case by PowerPoint is giving way to AI and predictive analytics, and Rosser wants SMC to be the leader in technology and innovation to create new opportunities and business optimisation. He understands that people can be wary of adopting new methods, but finds that once the value of those outcomes is explained, and how they enable a knowledge-based workforce to focus on the tasks that they need to be doing, they soon become as enthusiastic as he is.

Building the world’s longest fourlane tunnel for the New M5 provides

a good illustration. It’s unusual in tunnelling but developing an intelligent 3D model in this case will lead to more efficient planning, design and construction.

“It shows how it will look and how it will perform,” Rosser adds. “It gives a foundation for our future capabilities too, and things like design reviews, safety training; and also provision for training to ensure emergency readiness. With this 3D model people can start preparing, visualising and understanding the asset from an operational perspective.

Then there’s maintenance training and planning so when they come to do it for real a lot of time will be saved.”

A ‘digital twin’ of the motorway can encompass trillions of potential scenarios. SMC is creating a 3D replica model of the entire asset that will be invaluable for managing the motorway and predicting how it will perform in

Year founded

2014

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New M5 - Tunnelling

any permutation of situations. Apart from its obvious asset management advantage, its very existence attracts the workforce of the future, the best young talent who would love to work in this digital environment.

THE NEW GENERATION

At this point Rosser introduces J U LY 2 0 1 8

another passion of his – leveraging the power of technology entrepreneurs. “I think we need to look outside the organisation and complement our classical partners by teaming with high calibre startups that are leading technology innovation. In my experience the key to success

TECHNOLOGY

“We can quickly shrink our head count and with it our costs” — Shaune Rosser, CIO

is to step back and let them do what they are really good at. They are hungry, ambitious and bring a contagious sense of energy and excitement to the business.”

This is one reason he is keen to partner, at the earliest opportunity, with technology startups. One example is Sydney-based AI specialist Elula,

which was chosen to scope and develop a number of AI concepts, a business made up of some very bright people. “Startups like Elula are nimble, they can meet our business needs and they are very different from our traditional partners. We get these people in because they think a s i a . b u s i n e s s c h i e f. c o m

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There are currently 20 roadheaders digging the New M5 tunnels

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very differently and bring a real sense of excitement into the business as a whole.

They spot opportunities and possibilities but, more importantly, are quickly able to prototype these faster than you could normally expect to create a business case.�

It is significant that Rosser has no wish to hold all the reins himself but would rather share control with specialists, whether in engineering, or finance, or indeed any aspect of IT. One of the most valued compliments he has been paid was from a colleague who told him how much his approach was appreciated in the business: a less prescriptive approach where people are trusted and empowered through the change process and colleagues are encouraged to do what they do best.

SMC is going to change – a controlling interest will soon be sold by its government owners to investors. After one of the biggest global infrastructure acquisitions, the new owners will have the right to own and operate the motorway and then perhaps position it to take on further projects.

Whatever happens after 2023 when WestConnex is a reality, the capabilities of this uniquely capable organisation will surely attract the attention of infrastructure developers around the world.

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HOW

BEST PRACTICE PROCUREMENT IS DRIVING GROWTH AT CUSHMAN & WAKEFIELD

Cushman & Wakefield, following a major merger, is reimagining its global business to reflect the depth and reach of its property management portfolio, and supply chain transformation has been crucial to this process Written by John O’Hanlon Produced by Glen White

C U S H M A N & W A K E F I E L D A PA C

T

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he built environment is a great metaphor for globalisation. It’s getting axiomatic to say that the great cities of the world are becoming more alike, and that if you were to be dumped at random in any one of them the buildings alone would not be a sufficient clue to where you were.

Populations are migrating to these environments because this is where the industry, commerce and housing is all concentrated and as a result, cities are getting larger, sometimes exponentially as populations explode.

Global businesses have one thing in common – they need premises, offices, factories or shops. Another thing is that, totally dependent as they are on getting the working environment right, securing and maintaining and managing those premises is very unlikely to be their core business. They universally resort to the services of a specialist to source, negotiate and eventually manage their premises, whether these are rented, leased or owned.

It was in 1917 that J Clydesdale Cushman and Bernard Wakefield went into the real estate business together in New York. A measure of its success is the number of times it has been acquired by J U LY 2 0 1 8

larger groups – most recently in 2015 merging with another long-established global real estate services provider DTZ, backed by the privateequity giant TPG to create a company in contention to become the world’s largest company in its space. The strength of the Cushman & Wakefield brand is recognised in its adoption as the name of the new entity, which has an annual turnover of more than $6bn and some 45,000 employees. The year following the merger, 2016, saw the company transact over $191bn in deals and today it has a total of around 4.3bn sq ft of commercial property under management.

Cushman & Wakefield’s clients include many if not most of the biggest global businesses, including the likes of Unilever, Nokia, Lego, Coca-Cola, Nomura, Zurich Insurance, Rolls-Royce or Shell Oil (for whom Cushman & Wakefield negotiated the largest office space lease in the world in 2011). It’s also a truism to state that companies like this would not place a business-critical asset in the hands of a firm they did not trust implicitly.

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RAP Video

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TRANSFORMATION FUNDAMENTALS

The firm has a global policy, delivered through offices in 70 countries divided into major regions. Each of these offers nine core services in 21 sectors from airports to technology. Clearly the importance of each of these sectors will vary depending on the region, but all of them are well represented in the Asia/Pacific (APAC) business, which covers the burgeoning aspirations of India and Vietnam as well as the mature markets of Singapore and Australia and New Zealand (ANZ).

Stuart Smith Chief Procurement Officer – APAC

Stuart Smith is an executive manager and project director offering proven success realising strategically important mandates for multibilliondollar businesses. He leverages a diverse, international career history that spans procurement, property and facilities management, organisationwide transformation and large-scale program management to establish and implement effective operating models for future state success.

The merger with DTZ presented an attractive opportunity to Stuart Smith, a procurement professional with more than 15 years’ experience in property supply chain leadership, when he was appointed to the job of Chief Procure-

was also very interested in the own-

ment Officer (CPO) APAC, based at

ership structure,” Smith says.

Cushman & Wakefield’s Melbourne

“Being owned by a private equity

office. His role is to lead ANZ in pro-

firm meant that the whole organisa-

curement capability development as

tion, not just procurement, was

well as integrating APAC opportunities

going through a transformation and

as part of the company’s unified

a culture change. I could see that

regional programme of procurement

procurement would be a big part of

initiatives and maturing category strat-

that: I was keen to see how I could

egies. It was a huge opportunity to

contribute to that journey.”

overlook a very large regional spend. “I

The company’s brand reputation a s i a . b u s i n e s s c h i e f. c o m

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and relationships depend on the pro-

expectations, transferred up and

cesses and partnerships it manages

down the supply chain, is where I

throughout its supply chain. “We see our

want procurement to go.” Lever-

vendors as strategic partners to our own

aging people, processes and

success,” says Smith, as he introduces

systems, aligned with Cushman &

the transformation he is leading, with

Wakefield corporate policy, is the

enthusiastic support from the APAC

way to achieve this, he says.

leadership and in line with global strategic goals. “This is about more than

DIGITISING CORE

saving money. It is about trying to line up

PROCESSES

functionality with company strategy, as

Technology is the backbone of

an integral part of our clients’ success. If

efficiency in our times. While

we don’t manage our vendors well and

outputs and IP remain in the hands

help them understand what we are trying

of the teams, technology is what

to achieve then the outcome is going to

drives the process. Cushman

be detrimental to us. Seamlessness of

& Wakefield’s global intranet is

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C U S H M A N & W A K E F I E L D A PA C

Cushman & Wakefield Australia: Be What’s Next

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a powerful platform that carries all of the

on refining our panel agree-

templates, vendor registration and compli-

ments. To do that we need to

ance documents and other tools that help

give our category leads band-

to automate processes that used to

width. The account procurement

happen manually.

teams can deliver client expec-

Smith obtained permission to replicate that

tations in the field while our

portal, “Advantage” in the Australia network:

category strategy teams man-

“I wanted to find an effective means of com-

age the whole client portfolio /

munication to save our team being disrupted

vendor relationship. The tech-

by phone calls and emails on a regular basis

nology advantage was key to the

with the same question.

separation of roles, allowing our

“The team is now able to focus on the delivery of new outputs and the develop-

people to work more creatively.”

Spend cube analysis is

ment of new tools and products and

another key enabling technology.

commercial outcomes. I want them to be

This brings visibility to complex

focused on developing vendor relationships

client requirements and expecta-

J U LY 2 0 1 8

STUART SMITH’S TOP TIPS FOR TRANSFORMATION 1. Discovery and preparation Don’t rush, particularly if you joined an organisation looking for a ‘transformation’. What does the transformation mean to the various staff, team, vendors, executive and other stakeholders. Most likely everyone will refer to outputs or KPIs of the function. These are consequences of transformation, therefore your role must be to identify gaps and address opportunities in the fundamental governances and foundation operating model, that will in-turn result in those desired consequences. If you approach a Transformation transfixed on savings or speed to delivery or client relationship scores, then you will likely have short term achievement but with volatile results, and inability to sustain the change.

2. Balanced and rounded Your transformation Journey, will comprise many initiatives, each one chipping away at the enormity of the project, and providing manageable pieces for each person to Innovate, own and deliver. Most will be inter-related to other initiatives, and so coordination across initiatives by a formal program is critical. When identifying the initiatives, you need to ensure you have captured capability pillars of people, process and systems to have a rounded and holistic transformation journey.

3. People - innovation, ownership and delivery You might be the lead of the transformation Journey, but its success rests in both the people actioning initiatives, and people accepting the change. You will need to achieve both actioning and accepting the journey, by entrusting and empowering the team to be their own drivers of the journey. You must inspire them to innovate. You must encourage them to be brave to own their initiatives of the journey. You must hold to account the delivery to the standards upon which the next/future initiatives are able to rely on for their own success.

4. Simplified objectives, with manageable pieces The objective of your transformation Journey needs to be framed in a way which is universally understood and believed, not just by expertise in your function, but by the entire stakeholder group to the journey and its outcomes.

The idea being to agree the objective, but quickly be able to articulate the journey by a series of initiatives that manage the improvements needed in each pillar (people, process, systems), and have a manageable timeframe to each initiative’s completion.

5. Don’t forget BAU All too often the journey is more enticing than business-as-usual (BAU). It’s exciting, innovation, the buzz topic… but BAU cannot suffer. The journey needs to result in an improvement, but not on the basis of losing further ground on BAU performance.

195

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S U P P LY C H A I N

tions, allowing effective contract life

ing that objective to the business

cycle management and integration with

and the team, and then breaking

the J D Edwards ERP platform. There’s

that journey down into manageable

plenty of data available fed back from

phases.” Policies and procedure

financial and operational communica-

for APAC were, however, decided

tion in the field, but many systems still sit

in conjunction with the global

in isolation, Smith feels: analytics draw

teams and the executive leaders of

these together. He gives a simple exam-

the business worldwide. Smith’s

ple: “It’s nearly impossible to compare,

leadership role included making

when asked, our rate per square metre

sure that his team had

against a benchmark

ownership of the jour-

figure without linking

ney, were clear about

commercial with opera-

the objectives and

tional performance. No current system does that but without that link you can’t benchmark relia-

Year founded

1917

that each of the three pillars, (People, Process, and Technology / Systems) advanced

bly.” Benchmarking

hand in hand, at the

client commercial per-

same pace.

formance against

The ‘bite-sized’ approach proved

varying scopes of works is an as yet

effective, for example when consid-

uncracked nut but he has it in his sights.

ering procedures: “We took our large procedures document and

THE JOURNEY

broke it down into a user-friendly

When Smith came in to lead APAC in

form both for ourselves and for our

2017, he found a procurement team

stakeholders.” Getting the technol-

with a strong desire to be at the centre

ogy in place to support these

of the change process but without

changes is a work in progress,

a clear idea of the corporate goals. “My

though advances have been made.

role was to bridge the gap by directing

A whole new system whereby ven-

people towards the objective, articulat-

dors manage their improvement a s i a . b u s i n e s s c h i e f. c o m

197

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S U P P LY C H A I N

THE CUSHMAN & WAKEFIELD ADVANTAGE:

• Consistent delivery across multi-market client portfolios • Timely delivery of value conclusions • Compliance with financial regulatory requirements • Valuations based on access to constantly updated market data

and compliance via Rapid Global, an

whose services could be met by our

Adelaide-based partner, is in place.

strategic panel partners.

Compliance monitoring had been a big

The creation of panels made up

issue, with some vendors, particularity

of vendors with whom Cushman &

those used less frequently, not keeping

Wakefield has a strategic relation-

the necessary registrations and licences

ship in each of its 21 major

up to date. “We are looking at new tools

categories has driven further value.

to take up the next evolution of Rapid

Cleaning, for example, is one of the

Global and have reinvigorated our inter-

largest categories. “We have

nal compliance committee,” Smith says.

around 230 cleaning organisations:

The results so far have seen compli-

our strategic category panel for

ance performance improve by 35% over

cleaning now has no more than 15.

the last six months alone. Another posi-

Our panel agreements are more

tive outcome was reducing the entire

than just commercial contracts –

ANZ vendor base by 25% by removing

they focus more on driving value,

those suppliers whose compliance lev-

for us as well as for the clients.”

els had been identified as wanting, and

Standardised service level agreea s i a . b u s i n e s s c h i e f. c o m

199

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S U P P LY C H A I N

ments (SLAs) and KPIs, not focused purely on operations but the breadth of service delivery attributes, (saftety,

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dures on how to use these resources effectively. This helps ensure that no service parameters are missed, and as a consequence the clients are secure in the knowledge that Cushman & WakeThis drives competitiveness. “Many of our competitors don’t have that fully integrated supply chain procurement model,” explains Smith. “They are expediting the requirements of the client to

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201

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S U P P LY C H A I N

resources, and at larger clients we have embedded Cushman & Wakefield procurement specialists and managers. But we have an obligation to ensure that our strategy and category value offering works for largest through to the smallest clients. As the client accounts get smaller the need for an individual dedicated resource reduces, so we have a floating team who handle multiple accounts to ensure they have available direct access to our panel vendors for their own procured services.”

LOCAL SOURCING TO LARGE CLIENTS

‘Think global and act local’ is

“MY ROLE WAS TO BRIDGE THE GAP BY DIRECTING PEOPLE TOWARDS THE OBJECTIVE, ARTICULATING THAT OBJECTIVE TO THE BUSINESS AND THE TEAM, AND THEN BREAKING THAT JOURNEY DOWN INTO MANAGEABLE PHASES” 203 – Stuart Smith, Chief Procurement Officer – APAC

nowhere more important a mantra than in APAC. It’s a critical part of Cushman & Wakefield strategy to support indigenous businesses. At the end of 2017 the company

approximately $25mn with indige-

launched its Reconciliation Action

nous businesses across its supply

Plan (RAP). This pledged to provide

chain, and now Smith is determined

employment and training opportuni-

to go deeper. In 2017 he made a

ties, build community awareness, and

presentation at the annual confer-

facilitate collaboration with Aboriginal

ence of Supply Nation, Australia’s

and Torres Strait Islander Australians.

leading diversity organisation,

Since 2015, Cushman & Wakefield, in

exploring how indigenous busi-

partnership with its clients, has spent

nesses might evolve and what they a s i a . b u s i n e s s c h i e f. c o m

C U S H M A N & W A K E F I E L D A PA C

should consider in their tendering pro-

ment category panel, we then

cesses. “Our indigenous procurement

engage with Supply Nation and

policy is a supply chain promise to indig-

those larger industry representative

enous communities nationwide,” he says.

bodies to turn-key solutions in this

At least four of the 15 organisations we mentioned earlier in Cushman &

Smith started by dropping some

Wakefield’s cleaning category panel are

big names. Cushman & Wakefield

certified by Supply Nation as bona fide

has just signed up a major regional

indigenous-owned enterprises. Com-

mining corporation to

panies such as ARA

it’s client portfolio, but

Property Services,

what is different about

founded in 1994, sit alongside equally well-

43,000

established cleaning 204

alignment.”

firms as GJK Facilities

Number of employees at

that is the regional operating model of this client, which before the merger might have

on this panel. His aim is

been difficult to

to achieve an equiva-

accommodate. “We

lent level of

have a procurement

representation on each

manager in Australia who is liaising

of the category panels.

our APAC sister companies in

Firms that are too small to make the

development of the Client pro-

panels on their own still participate

gramme of procurement initiatives

through structured relationships with

to achieve contracting model they

major indigenous business’s and facilita-

want,” Smith explains.

tors like Supply Nation. “We have

“The challenge is to deliver com-

separate indigenous panels,” Smith says.

mercial benefit and consistent

“They are not category specific, but

performance, not just across Aus-

where a client wants to use an indigenous

tralia but across the Asia Pacific

organisation across multiple services or

region. Having an integrated APAC

on a consolidated site model, for which

model is a fundamental benefit of

we can’t quite see a place in a procure-

our transformation journey. We are

J U LY 2 0 1 8

S U P P LY C H A I N

“I WANT TO START BUILDING STRONGER RELATIONSHIPS BETWEEN THE SENIOR LEADERSHIP TEAMS ACROSS THE REGION” – Stuart Smith, Chief Procurement Officer – APAC

no longer talking of countries as silos,

30% by increasing the strength of

but engaging with a large client to lever-

strategic relationships. Adoption

age our categories and operating

and engagement of our 220 panel

model.” The deal is setting a benchmark,

vendors is due to grow by 65%, and

he adds. From this year on, more clients

Smith believes this will be

will be coming on board to take advan-

exceeded. “These are the key tar-

tage of Cushman & Wakefield’s APAC

gets for ANZ and more broadly. We

operating model, delivering consistent

have a very good team in ANZ and

services, tools, vendor strategies and

an excellent relationship with the

category strategies.

country procurement leads. I want

In this encouraging environment Smith

to start building stronger relation-

is confident that his teams will be able to

ships between the senior

achieve further savings in the supply

leadership teams across the region

chain over and above the 67% year-on-

and drive consistent integrated

year increase they managed last year.

operating model, standards in

Indigenous engagement will double. The

scopes of work, consistent SLAs

vendor tail will be reduced by a further

and KPIs.” a s i a . b u s i n e s s c h i e f. c o m

205