Business Chief ANZ Edition – July 2019 by Business Chief ANZ

ANZ EDITION JULY 20 19 anz.businesschief.com

A trusted advisor Introducing agile to serve communities

SUPPLY CHAIN INNOVATION

Catholic Education Diocese of Parramatta Raju Varanasi and Greg Whitby on how the organisation has transformed its technology and culture

City Focus

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FOREWORD

elcome to the July issue of

Elsewhere in the magazine, Western

Business Chief ANZ!

Sydney’s Catholic Education Diocese of Parramatta is undergoing

Taking centre stage is The

a digital transformation to the

Warehouse Group, New Zealand’s

benefit of its students. Director of

largest retail group. Business Chief

Data Intelligence Raju Varanasi and

investigates precisely how the

Executive Director Greg Whitby give

company has harnessed the potential

their perspectives on the role of

for innovation in its supply chain.

technology in learning.

To create a true omnichannel experience for customers, the owner

In this month’s City Focus we take

of The Warehouse and Noel Leeming

look at Melbourne, detailing its

is embarking on a people-led

reputation as a garden city and its

change management strategy as

key transportation links.

it overhauls its systems. Do you have a story to tell? If you “Our goal is to be able to serve our

would like to be featured in an

customers in whatever way they

upcoming issue of Business Chief

want, irrespective of how they

ANZ, get in touch at

choose to engage with us,” says

william.smith@bizclikmedia.com

Chief Logistics Officer Chris Foord.

Enjoy the issue!

“It’s about us being able to offer

William Smith

a suite of channels that can sustainably deliver on that promise.”

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Building an ecosystem? Connect the dots. â&#x20AC;&#x153;Your journey to cloud must navigate pitfalls and opportunities that are unique to your business. We support you in imagining and delivering your cloud journey and making it runâ&#x20AC;?. Eric Meistermann, Deloitte Partner in charge of AXA Group

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CONTENTS

Transforming the schooling experience at Catholic Education Diocese of Parramatta

42 GARTNER: operating with a customercentric approach in the research and advisory sector

HOW IS DIGITAL TRANSFORMATION REVOLUTIONISING THE SUPPLY CHAIN SECTOR?

Social impact: balancing profit and purpose

80 88

City Focus

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The Warehouse Group

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Transforming the schooling experience at Catholic Education Diocese of Parramatta WRITTEN BY

WILLIAM SMITH PRODUCED BY

MIKE SADR

J U LY 2 0 1 9

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C AT H O L I C E D U C AT I O N D I O C E S E O F PA R R A M AT TA

Catholic Education Diocese of Parramatta’s Director of Data Intelligence, Raju Varanasi and Executive Director, Greg Whitby detail the digital transformation undertaken at its schools, and the resulting benefits enjoyed by students

atholic Education Diocese of Parramatta (CEDP) oversees 80 Catholic schools in Western Sydney, with around 43,000

students and 5,000 staff. CEDP’s Executive Director 16

is Greg Whitby AM KSG, who alongside the Director of Data Intelligence, Raju Varanasi, has overseen a large-scale digital transformation to the benefit of its schools. With so many stakeholders, efficiency is vital, as Varanasi explains: “Digital transformation has two main focus points for us. The first is transparency and the ease of releasing information and intelligence to teachers, students and staff. The second is operational excellence: saving time and costs.”

A NEW MODEL To change the model in the ways CEDP has, it was necessary to change the mindset throughout the organisation. “Greg knew that digital transformation came with a bit of risk, but a change of mindset had to happen,” says Varanasi. “I work with the principals to build their trust about why transformation has to J U LY 2 0 1 9

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The Art of the Possible Transforming educational organisations requires bold thinking to envision a future that provides better opportunities and outcomes for 21st century students. At Cinglevue, we understand the value in collaborating with forward-thinking educational organisations to develop solutions which support transformational change. Co-creation processes involving key stakeholders in the teaching and learning community in addition to education, research, and technology partners are critical in this regard as they provide the foundation necessary for true innovation.

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Learn More

The role of research and cocreation in driving innovation and transformational change Cinglevue develops innovative solutions for organisations operating within the Early Years Learning to Higher Education space. Our goal is to make learning tangible and realiseable for all students and we have developed our Virtuoso enterprise learning platform to actively support teachers and learners in this endeavour. Virtuoso provides educational organisations with a common suite of configurable tools and processes to accommodate the entire education lifecycle. Whilst Virtuoso incorporates a full complement of administrative features for effectively managing organisational needs, its primary emphasis is on supporting teachers and students to achieve continual, measurable, and sustainable learning gains. In working towards realising our vision, Cinglevue has collaborated closely with like-minded organisations such as the Catholic Education Diocese of Parramatta (CEDP) to provide a foundation for enacting transformational change. Cinglevue and CEDP have a long-standing relationship founded on the implementation of Cinglevueâ&#x20AC;&#x2122;s existing Student Information System (Faces), which is currently deployed at all schools within the diocese. Working closely with CEDP, the Faces platform was rolled out in phases, beginning with a pilot program and utilising the experience gained and lessons learned in each phase to continuously refine the deployment process. Our ongoing collaboration is continually informing enhancements to the Faces platform, as we continue to work together to accommodate end-user needs to the benefit of all schools operating throughout the diocese.

Building upon this success, Cinglevue sought to develop a solution that would enable educational organisations to take teaching and learning to the next level. With the development of Virtuoso, Cinglevue has also extended its co-creation practices to incorporate University research partners, where research collaboration informs the development of features for enhancing educational outcomes. CEDP has played an active role in this process with schools within the diocese directly involved in research to provide unique insights from teachers and students. Collectively, co-creative practice and active engagement with research have enabled Cinglevue to pursue a truly innovative agenda. This approach has allowed external perspectives and expertise to be readily incorporated into Virtuoso in a way that would not otherwise be possible, providing a solid foundation for responding to real-world needs whilst also bridging the gap between research and practice. Moreover, our approach acknowledges that developing a transformational and innovative product is a continuous process, in this sense, features cannot remain static; consistently delivering a customisable, configurable experience is key within a constantly changing environment. Our view is that technology alone cannot deliver transformation per se, rather itâ&#x20AC;&#x2122;s what technology enables one to achieve that delivers transformation. Our vision offers a fresh perspective that brings into sharp focus both the limitations of current education systems and the possibilities afforded by a fundamentally different, learner-centred approach.

C AT H O L I C E D U C AT I O N D I O C E S E O F PA R R A M AT TA

“ All we’re doing is shortchanging tomorrow’s generation if we continue teaching them in the same way” — Greg Whitby, ED, Catholic Education Diocese of Parramatta

happen. Every time I present to them, I try to better understand why something might be working while another thing isn’t.” Heading a team of six directors, Whitby sees his role as further enhancing learning and teaching in schools. “My job is strategic positioning. I have to make sure that our system is fit for purpose in five years time. The question I constantly ask myself is: ‘Are we going to be relevant, around and in the market in five years’ time?’” Ensuring schools maintain a culture capable of thriving inside the constantly evolving digital realm is critical.

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CLICK TO WATCH : ‘FIND OUT MORE ABOUT CATHOLIC SCHOOLS IN WESTERN SYDNEY’ 21 Another significant change has been

schooling puts the learner at the centre

in the way learning and teaching is

of schooling. “We’ve embarked on

delivered. Whitby identifies the rapidly

a process of transformation in our

changing marketplace for schooling,

schools,” Whitby explains. “We believe

with the increasing popularity of home-

that contemporary schooling, the way

schooling and micro-credentialing, as

it’s currently delivered in an industrial

examples of why schooling must better

model, is no longer fit for purpose in

meet the demands of today’s learners

today’s world. We’ve got to build diversity

in today’s world. “Going to school, getting

into the system because we believe

your leaving certificate, then going to

that diversity is the norm in learning.

university to get a BA and then an MA

Each person is different and they each

– for many, those days are numbered.

have different needs.”

Yet schools still operate as if they are a sausage machine feeding people

TECHNOLOGY TRANSFORMATION

through.” A contemporary model of

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CEDP PARTNERS WITH MIP

C AT H O L I C E D U C AT I O N D I O C E S E O F PA R R A M AT TA

CEDP has introduced a broad range of

create our data sources, keeping them

technological solutions. Foundational

up-to-date and scheduling them for

is the provision and analysis of data,

refresh.” Using solutions such as Tableau

allowing informed decision-making and

and Alteryx, data has been made

identifying potential problem areas.

accessible to, and understandable for,

“We’ve opened up the data sets, which

principals and teachers. “They used to

were largely in spreadsheets and had

take 30 minutes to look at attendance

never seen the light of day in terms of

data, on a weekly or even a daily basis;

analysis or insights or intelligence,” says

now they take less than a minute.”

Varanasi. “Our data team compiles data

CEDP takes a six lens approach to

sets on several aspects of schooling –

analytics, encompassing Student

literacy, numeracy, intervention support,

Performance, Resourcing and Regula-

student attendance and so on. We then

tory, Community and Culture, Family

blend it with various other sources and

and Religion, Teacher Development

J U LY 2 0 1 9

and School Performance, which it has found to be a useful framework. With its improved content management systems and enterprise service desk, the organisation has also managed to significantly reduce the time it takes to search for data and report problems. Such innovations are beneficial to both business process improvement and the overall company strategy. “Our footprint is almost 90% in the cloud, and many of our investments have now turned from capital expenditure to operational,” says Varanasi.

E XE CU T I VE PRO FI LE

Greg Whitby Greg Whitby is a teacher, advocate, administrator and leader. With 47 years in education, and driven by a commitment to justice and equity, his mission is to transform schooling for every young person. Greg’s service to education was recognised through the 2018 Australia Day Honours list with the award of the Australian Medal (AM). He was also awarded a Papal Knighthood in the Order of St Gregory the Great and the Australian College of Educators’ Sir Harold Wyndham Medal for his contribution to the education of young people in NSW. a nz .busi ne ssc h ief. com

Technologyonecorp.com

80 Catholic schools now work as one Catholic Education Diocese of Parramatta (CEDP) has joined over 1,300 Australian schools using TechnologyOneâ&#x20AC;&#x2122;s enterprise software to power their digital transformation. Powered by TechnologyOne SaaS, 45,000 CEDP students and 5,000 staff use TechnologyOneâ&#x20AC;&#x2122;s software to drive productivity and focus on student success.

“ We believe that contemporary schooling, the way it’s delivered in an industrial model, is no longer fit for purpose in today’s world” — Greg Whitby, ED, Catholic Education Diocese of Parramatta

CEDP has been an early adopter of machine learning technology, allowing it to better utilise the data it collects. Bringing it to bear on student retention, the organisation wanted to discover the connections between students who left its system between primary and secondary school. “We have introduced machine learning at a system level, in consultation with our directors and leaders,” says Varanasi. “We are already seeing gains from it.” Aside from the business and cost imperatives, the technology also finds a use in helping 27

E XE CU T I VE PRO FI LE

Raju Varanasi Raju Varanasi is the Director, Data Intelligence and CIO at Catholic Education Office, Diocese of Parramatta, with responsibilities that include enterprise program office, IT systems and infrastructure, applications and security, data and information services. Raju has over 25 years of experience in the Australian education system, with experience in both government and non-government sectors in Australia. Prior to this role, Raju was the Chief Operating Officer for Education Services Australia, and General Manager of Centre for Learning Innovation, the first ever innovation centre for public schools in the NSW Department of Education. Raju has also presented at major conferences organised by UNESCO, Google, Adobe, Intel and EduTech.

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to identify students who require addition-

cally sealed,” says Whitby. “You went

al support. “Machine learning is

inside the gate in the morning, you came

predictive and proactive. Three years

out in the afternoon, and nobody else

back, all I saw was the post-mortem

came inside or went outside. You can’t

analysis of results. Our intervention

operate like that now. It’s about building

program for literacy and numeracy

connections and working with people

allows us, if the cutoff is the 90th

who can add value to your business

percentile, to actually predict those

processes.” CEDP has partnered with

between 87 and 90 so that schools

a number of technology companies.

can take action to lift their results.”

With IT provider CompNow, CEDP has

With such complex technological

partnered to provide integrated procure-

solutions, CEDP needed the expertise

ment and lifecycle management solu-

of specialists in their respective fields.

tions, and best in breed choice to the

“Schools in the old model were hermeti-

bring-your-own-device program a nz .busi ne ssc h ief. com

C AT H O L I C E D U C AT I O N D I O C E S E O F PA R R A M AT TA

across Chromebooks, MacBooks and

cloud managed service provider Secure

iPads. Telstra helps ensure that CEDP’s

Agility to identify and remedy any

networking infrastructure meets the

issues when they arise. “One particular

demand from its 80 schools and a load

challenge that we have tackled for CEDP

of between 30 and 35 thousand devices

is visibility of network performance and

whilst remaining economical. “Cisco

efficiency, by building dashboards that

has been a long standing partner in our

assist in reducing time to resolve issues

technology journey,” says Varanasi.

and ensuring learning experiences are

“Cisco’s equipment provides the ‘connect’

optimised” says Secure Agility Director

part of our connected learning strate-

of Technology Charlie Tannous. CEDP’s

gies.” To ensure ongoing connectivity

enterprise operations are powered by

in such a large system, CEDP relies on

TechOne solutions: “their Finance,

J U LY 2 0 1 9

Content, and Asset Management

enabled us to embark on the analytics

solutions are bringing productivity and

journey with great confidence in the

consistency across all schools in our

student data we have captured.” By

system.” In data analysis, the company

collaborating with its partners, CEDP

employs the services of data specialists

can ensure the smooth operation of its

outside the organisation, as Varanasi

many high-tech schools.

explains: “When I have a complex problem, I use the senior data analysts from

THE STUDENT EXPERIENCE

MIP Australia.” CEDP also uses FACES,

The most important beneficiaries of

a student management system devel-

CEDP’s digital transformation are the

oped by Cinglevue, in all of its schools.

students, and Varanasi was keen to

“It’s a robust enterprise system that has

extend his data collection efforts a nz .busi ne ssc h ief. com

towards the wellbeing of students. “We know our student experience is improving because, for example, we perform an annual survey called ‘Tell Them From Me’ where we listen to all 43,000 of our students. The social side of learning and wellbeing has become a much bigger focus for us as a result of the data obtained from ‘Tell Them From Me’. While digital transformation needs to be shown in student performance or school performance, it must also be about

student experience and helping optimise the learning experience for each child.” CEDP has found the effect on its

lines school processes, it is fitting that CEDP also uses technology in the class-

students’ learning to be equally trans-

room to directly improve learning. Our

formative. This has stemmed in part

students and teachers are able to inter-

from the reduced burden on teachers

act through systems such as Google

and principals, allowing them to move

Classroom,” says Varanasi. “Technology

away from administrative tasks to spend

isn’t a substitute for the face-to-face

time on more important matters. “If

teaching, it enhances it. It provides more

a principal spends less time on adminis-

opportunities for teachers and students

tration, or invoicing, supplier and repair

to have richer day-to-day interactions.

issues, they can concentrate on edu-

That’s how technology is improving

cational leadership,” says Varanasi.

teaching and learning.”

With its strong record of implementing technology that frames and stream-

This notion of transformation also extends to the physical realm, with a nz .busi ne ssc h ief. com

C AT H O L I C E D U C AT I O N D I O C E S E O F PA R R A M AT TA

Who has the answers to help plan for tomorrow’s classrooms? Secure Agility is proud to provide CEDP with services and advice that keeps the technology running and an IT roadmap that ensures our children’s learning into the future.

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Proud Partner

CEDP exploring innovative locations

tion. They should mirror today’s work-

and architecture, including asking

places: we want our students to work in

Secure Agility to lay the foundation for

a space that promotes collaboration

IOT (internet of things) opportunities

and learning.” Whitby concurs, detailing

that will enable truly dynamic and

two of the organisation’s upcoming

responsive classroom environments.

projects. “We’re building our latest school

“Our new schools, including the last five

in a community precinct, because that’s

schools that we have commissioned,

where the community is. Why build

are truly 21st century,” says Varanasi.

a school on a hill, put a fence around it

“We speak to experts in learning enviro-

and use it for just 40 weeks of the year?

nments and spaces, because you can’t

We will also build a school in the precinct

just change the curriculum without

surrounding Sydney’s second airport

changes the learning spaces. Learning

as part of a major science and technol-

environments must allow for collabora-

ogy park. We will partner with other a nz .busi ne ssc h ief. com

C AT H O L I C E D U C AT I O N D I O C E S E O F PA R R A M AT TA

OUR PARTNERS

TechnologyOne

TechnologyOne is an ASX-150 company with 14 offices around the world, employing over 1,200 staff and investing $50 million in Australian innovation. TechnologyOne has been a partner of CEDP for many years but was selected in 2015 to become the core Enterprise Financials suite for both schools and Head Office. Since then our partnership has gained momentum to include Enterprise Content Management and Enterprise Asset Management. As an early adopter of cloud services, CEDP has leveraged the benefits of TechnologyOne cloud, through scalability and access including compute support during peak periods such as our Billing cycles. CEDP enjoys a well-managed and transparent vendor relationship

Secure Agility Pty Ltd Secure Agility is a provider of Professional and Managed ICT Solutions provider with expert knowledge of Telstra and Cisco architectures. CEDP has partnered with Secure Agility

J U LY 2 0 1 9

for several years and has utilised their skills and managed services across many domains including: • Network • Cloud • Data Centre • Apps and Collaboration • End User Computing • Transformation CEDP have found the team to be customer centric, highly skilled and professional and willing to go the extra mile to make our projects a success, We have a high confidence in the quality of their work.

MIP Australia MIP is a data company with over 26 years’ experience in Australia. MIP, a gold partner for Tableau and Alteryx, has supported CEDP since the early days of our digital transformation in helping establish our own a self-service analytics framework. Through their expertise in the enterprise data cycle, MIP has positioned CEDP to develop over 400 visualisations and dashboards covering our rich data sets across many domains. These analytics have delivered actionable insights and enormous value to the teachers, staff and students in our schools.

CingleVue International Pty Ltd

Telstra

CingleVue have been a partner of CEDP for the past 8 years. CingleVue supply our Enterprise Student Information System which has been the backbone of our journey from Legacy school-based applications to Enterprise strength best of breed services which have been transformational in the rich data they have provided to our system of schools. Underpinned by Oracle technology, the student information system has been robust, available and reliable throughout. It has awakened an appetite for data within our user community.

Telstra is Australiaâ&#x20AC;&#x2122;s leading telecommunications and technology company, offering a full range of communications services and competing in all telecommunications markets. In Australia Telstra provides 18.0 million retail mobile services, 3.7 million retail fixed bundles and standalone data services and 1.7 million retail fixed standalone voice services. Telstra is CEDPâ&#x20AC;&#x2122;s Telecoms provider including Voice and Landlines. This also includes Cisco routers through their managed services.

CompNow

Cisco

CompNow provide device procurement, deployment & support services to our Education community. CEDP have found them to be innovative in their approach to procurement, they are supported by excellent technology and self service mechanism and have also provided value added services in partner with Financial organisations to support leasing and buy-back services.

Cisco Systems is an American technology company, operating globally, best known for its computer networking products. CEDP utilise Cisco for their network computing needsfor Network, Voice, Switches and Routing.

a nz .busi ne ssc h ief. com

C AT H O L I C E D U C AT I O N D I O C E S E O F PA R R A M AT TA

“ If a principal spends less time on administration, or invoicing, supplier or repair issues, they can concentrate more on educational leadership” — Raju Varanasi, DDI, Catholic Education Diocese of Parramatta

J U LY 2 0 1 9

education, business and industry providers. It’s an opportunity to be part of a community that will change the very nature of schooling.” Given the rapidly changing nature of today’s world, CEDP sees its transformation agenda as an ongoing process. “Our goals for the future are to drive change in the ways learning is done, the ways learning spaces are organised and the ways that teachers interact with students through technology,” says Varanasi. In doing so, not only will schools thrive in a business sense, but students will develop the skills and capabilities necessary for the modern world. “The old model’s broken,” says Whitby. “Let’s be honest about it and build the future. All we’re doing is short-changing tomorrow’s generation if we continue teaching them in the same way. Times have changed, and technologies like data and machine learning in the school system are here to stay.”

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LEADERSHIP

GARTNER: operating with a customercentric approach in the research and advisory sector We sit down with Mal Jones, Head of APAC Sales at Gartner, to discuss how the research and advisory firm conducts business in Asia WRITTEN BY

J U LY 2 0 1 9

SEAN GALEA-PACE

a nz .busi ne ssc h ief. com

LEADERSHIP

s a leading research and advisory company, Gartner operates with a firm customercentric approach and serves leaders of

every major function in all industries and market sectors. Offering expertise in supply chain management to executives across various enterprises, the global firm caters to more than 15,000 client organisations from 100 different countries worldwide. Having worked for Gartner since January 2015 in roles including Business Development Director in Sydney, Australia and Director of APAC Supply Chain, Mal Jones is well-experienced in under-

standing the supply chain industry in Asia. Originally emigrating to Australia from the UK in 2008, Mal moved onto work in Singapore in May 2017 and remains responsible for launching Gartner’s supply chain business across Asia. Despite the task of negotiating challenging and diverse markets in Asia, Mal believes that there is a great opportunity for Gartner to experience growth and achieve success in the region. “It’s a different way of working here, and there are massive opportunities for us in Asia. We’re quite new in this region and have only been operating in this market for a few years. However, we’re one of the fastest growing divisions in the business and it’s a great place to be.” As a company with $4bn in revenue and a member of the S&P 500 with clients in 73% of the J U LY 2 0 1 9

“ We’re quite new in this region and have only been operating in this market for a few years. However, we’re one of the fastest growing divisions in the business and it’s a great place to be” — Mal Jones, Head of Sales, Gartner

Global 500, Jones believes Gartner’s ability to consistently disrupt the consultancy industry enables it to stand out from its rivals. “We’re a retained partner for clients and work on an individual level. We work with chief supply chain officers and their direct reports, but our engagement is very practical, and we generate value through on the ground support through our research, toolkits, ongoing discussions with our industry experts (end to end coverage /cross industry) and peer connections,” explains Jones. “The change a nz .busi ne ssc h ief. com

LEADERSHIP

CLICK TO WATCH : ‘RETHINKING CUSTOMER RELATIONSHIPS’ 46 management journey isn’t easy. It’s the

“Customer expectations of faster

individuals in the company who are

fulfilment and increased supply agility

driving it and often our clients tell us

continue to grow, driving significant

that building internal capability is one

challenges for businesses with rigid

of the hardest parts. If you get some-

legacy fulfilment networks to cost

body coming in and driving it for you;

effectively respond,” says Thomas

you’re not really building skills for the

O’Conner, Senior Research Director

medium and long term. Our aim is to

at Gartner. The key success factors

add short, medium- and long-term val-

that will ensure the sustainability of

ue for our clients over time. The world

strategic supply chain transformations

for customers is becoming increasingly

include active C-suite level engage-

challenging, as supply chain leaders

ment and sponsorship of supply chain

continue to try to balance, cost, cash

transformation initiatives. “There needs

and service priorities for their custom-

to be clear alignment with broader

ers and market segment.”

organisation goals and objectives,

J U LY 2 0 1 9

“ Our aim is to add short, medium and long-term value for our clients over time” — Mal Jones, Head of Sales, Gartner

including an understanding of the capabilities required to deliver and succeed in these objectives,” says James Lisica, Senior Director at Gartner. “Our own research shows that 75% of digital supply chain projects fail to align with broader digital business strategies. It’s important there’s effective communication and change management skills within the supply chain that go beyond analysis and return on investment (ROI), instead focusing on employee engagement, 47

E XE CU T I VE PRO FI LE

Mal Jones Mal’s career to date has spanned over 20 years in the supply chain industry working in many different parts of the world including UK, EMEA, Australia and now Singapore. Mal worked his way up through a variety of roles in operations, which led to a successful career in sales and currently leads Gartner’s supply chain business in Asia. Through those 20 years working cross- industry, with some of the largest companies in the world, Mal has accrued a wealth of experience which he hopes he can add to through his time in Asia. When not working , Mal enjoys spending time with his family, playing cricket and enjoying the odd single malt whisky!

a nz .

LEADERSHIP

feelings and actions associated with the transformation.” With a drive to build long-term, sustainable relationships with its clients, Gartner maintains a client retention rate of 90% in Asia, in addition to operating with a multi-year engagement and partnering with clients over three years as standard. “Supply chain transformation and building capabilities inside an organisation doesn’t happen overnight,” explains Jones. “Our high retention rate is testament to 48

“ Our high retention rate is testament to the value that we can help our clients generate; they come back year over year and renew. We really want to foster long-term partnerships by delivering value and ensuring we align” — Mal Jones, Head of Sales, Gartner

the value that we can help our clients generate; they come back year over year and renew. We really want to foster long-term partnerships by deliv-

and execution from those executives

ering value and ensuring we align with

and their teams running the supply

the business’ overall strategy. Our clients’

chain must be aligned because the

immediate supply chain priorities can

supply chain doesn’t operate in a bub-

sometimes change, but usually the

ble. Our job is to really understand

critical priorities that CEOs lay down

what’s happening in the business and

tend not be disrupted too dramatically.

then help our clients translate that into

For example, it might be that our clients

effective supply chain transformation

want to grow market share in Asia and

strategies and execution in the most

double their volumes, but our clients

efficient way.”

always want to make sure they’re de-

As the rise of technology necessi-

livering profitable growth to their

tates the digital transformation of

shareholders. The supply chain is criti-

companies worldwide, it has become

cal to delivering this and the strategies

progressively more important that

J U LY 2 0 1 9

through the noise and figure out which technology is appropriate at each stage of the journey. One person’s AI is another person’s attempt at transitioning away from spreadsheets. Digitalisation can mean lots of different things to a range of different companies.” Looking to the future, Jones has a clear idea of how success can be achieved long-term in the supply chain space. “The supply chain is one of the key levers for successful growth for a company,” notes Jones. “If you’re not transforming your supply chain and not continually looking at efficiencies and maturing the processes, you’re going Research & Advisory firms such as

to be going backwards versus your

Gartner move away from traditional

competition. CEOs know that they have

models and begin to leverage technol-

bright people in the organisation. They

ogy in new ways. “Today, our model

also know that they haven’t got time to

consists of operating in a digital

go and research best practice and

format in many ways,” explains Jones.

figure out the right things to do in the

“Gartner.com is where all of the

correct order. Therefore, there’s a role

research sits and we don’t fly experts

for partnerships with us to be able to

all around the world; we use technol-

help plug that gap and build that capa-

ogy to connect our clients to our

bility up. I would expect our double-digit

experts to have those conversations.

growth to continue into the future –

From the client’s perspective, digital

there’s no reason why not.”

transformation is coming at them at a rapid rate. Our job is to try and help cut a nz .busi ne ssc h ief. com

TECHNOLOGY

HOW IS DIGITAL TRANSFORMATION REVOLUTIONISING THE SUPPLY CHAIN SECTOR? Vivek Wikhe, Domain Expert of Retail and Supply Chain at LatentView Analytics, discusses the future of supply chain management and the impact of digital transformation WRITTEN BY

J U LY 2 0 1 9

VIVEK WIKHE

a nz .busi ne ssc h ief. com

TECHNOLOGY

ll over the world, supply chains are disrupted by the advance of technology and leaders must rethink their strategies.

Business Chief caught up with LatentViewâ&#x20AC;&#x2122;s Vivek Wikhe to find out how organisations can make the most of digital disruption to best serve the end consumer. Why must companies rethink their supply chain strategies in the age of digital transformation? There areÂ major cascading factors contributing to companies rethinking their supply chain strat52

egies in the age of digital transformation. First, the demand side has changed rapidly. Today, there are more channels and touchpoints than ever before, which all serve different needs along the customer journey. This has resulted in a migration away from the way that demand has traditionally been generated. Invariably, it is the ability to service and optimise these new channels that allows companies to differentiate and gain a competitive edge. Organisations are no longer sure of the costs and margins in each channel that touches consumers, and are still figuring out which channels they need to service and promote in the digital era. Ensuring profitable margins across channels requires a well thought out supply chain strategy according to a companyâ&#x20AC;&#x2122;s customer base and an J U LY 2 0 1 9

“ Ultimately, all organisations across industries must rethink their supply chain strategies as the digital era continues moving towards the diversification of channels” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics

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TECHNOLOGY

optimised channel mix. Ultimately, all

a specific brand, which is easier to

organisations across industries must

predict based on demographics, (for

rethink their supply chain strategies as

example, purchasing Nike sneakers),

the digital era continues moving towards

they will typically begin their shopping

the diversification of channels.

journey by searching online for certain

Â What are some immediate steps that need to be taken in order for

attributes and features that they want (â&#x20AC;&#x153;stylish white sneakersâ&#x20AC;?). Organisations need to tune their

companies to maximise profitability

supply chains to reflect this shift. Instead

in their supply chains?

of serving a target market based on

Buying behavior is moving towards more

demographics, supply chains must take

nebulous attribute-based purchases.

into account a larger market brought

Instead of consumers focusing on

about by the digital era. Supply chains

J U LY 2 0 1 9

should evolve to fulfillment chains, which

supply and demand, supply chains need

can serve multiple channels profitably.

to get increasingly more agile and more

The first step to maximising profitability

in tune with short-term planning. Even

is to get a clear picture of order costs

traditional industries need to stay abreast

incurred in every channel. This is a com-

of quickly developing consumer trends

plex problem with multiple, co-depend-

and desires. For example, food and

ent factors. It gets complex because

groceries are a traditional and staple

the costs need to be predicted to ensure

category. However, today, there are

an enterprise has a profitable order

trends in food that pop up quickly, giving

fulfillment scenario. The analysis of the

traditional consumer buying behavior

cost structure and visibility to them is

a very short-term strength. Many cate-

the first step to maximise profitability

gories overall are moving towards the

for supply chains.

shorter-term life cycles, and enterprises need to move to reflect that as well,

What are the challenges that enterprises face as they move to digitise

and become leaner and more agile. Â

their supply chain, and what are

How does having better data strategy

a few best practices to overcome

create greater supply chain efficiency?

these challenges?

So much of demand is influenced by

The main challenge is that due to the

what consumers are seeing online - you

changing nature of modern consumer

essentially can predict what consumers

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TECHNOLOGY

are going to buy by having strong insights into data on what influences customer behavior. For example, a few years back, Amazon became famous for predicting demand. In fact, they were so good at it, that they were shipping goods before the customer even purchased them. All companies need to have a view of the latest technology for predicting customers purchasing behavior. As buying cycles continue to grow shorter, there is no longer time to procure and supply a product without advance 56

preparation. Ultimately, in order to not miss out on profitable opportunities, and to have a more focused organisation of the supply chain, a modernised data strategy that involves predictive analytics for both the supply and demand sides is necessary. A â&#x20AC;&#x2DC;betterâ&#x20AC;&#x2122; data strategy is one where enterprises have a single view of all data points and these are integrated to respond in sync with unit changes. An integrated data strategy helps move the fulfillment chain in three phases - increasing visibility thereby reducing variability and finally increasing velocity. All these three phases require a different yet integrated data strategy. J U LY 2 0 1 9

As enterprises continue through their digital transformation journeys, how are innovations in AI and predictive technologies specifically playing a role? Most enterprises on digital transformation journeys go through several stages, as they learn to apply machine learning and artificial intelligence. These stages are: descriptive, prescriptive, and predictive. In the first, you can only see what the data does, and it can help inform decisionmaking processes. In the second stage, you can employ an AI technology to gain prescriptive intelligence to solve specific problems or gain insight into definitive opportunities - for example, AI can identify demand per channel, or identify which models are the most profitable. In the third and final stage, you reach an exalted state of sorts wherein the ability to predict trends in the data becomes so accurate that itâ&#x20AC;&#x2122;s possible to preempt action around the insights. This final stage will lead to a much more focused and streamlined supply chain, and allow for comprehensive preemptive planning for all relevant supply and demand factors. a nz .busi ne ssc h ief. com

TECHNOLOGY

Are there any particular industries

What do you see as the biggest

which have the best opportunity to

trends going forward related to

gain a competitive advantage by

emerging technology in AI and the

adopting this technology before the

supply chain?

rest of their peers?

Going forward, I see a number of ways

I can’t think of any industry that should

that emerging technology will continue

not be investing in emerging technology

to influence the supply chain. The next

solutions. In fact, it is no longer really

step in using data in the supply chain

a question of competitive edge, but

will be merging all sources of customer

rather of survival. If you’re not investing

data, including social media data. Down

in emerging technology and at least

the line, we’ll be looking at more IoT

exploring opportunities with AI, you’re

data. In coming years, we expect to see

making yourself vulnerable to other

the rise of the intelligent home assis-

companies in the field that may have

tant as the first point of understanding

higher efficiency and greater analytical

consumers and the supply side. Informa-

abilities (and thus a greater competitive

tion on demand signals will no longer

advantage) in their supply chain.

be coming directly from consumer

J U LY 2 0 1 9

“ The main challenge is that due to the changing nature of modern consumer supply and demand, supply chains need to get increasingly more agile and more in tune with shortterm planning” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics

a nz .busi ne ssc h ief. com

TECHNOLOGY

“ I can’t think of any industry that should not be investing in emerging technology solutions. In fact, it is no longer really a question of competitive edge, but rather of survival” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics

data, but rather personal assistants inside the home. On the logistical side, I expect we’ll also be seeing a greater ability to deal with smaller markets. Once analytics helps optimise supply chains to a greater degree, things such as home delivery models will become profitable, even for smaller markets and chains. The overwhelming trend will be intelligent assistants embedded in various enterprise chains interacting with each other to ensure regular chores are carried out without constant human intervention J U LY 2 0 1 9

Are there any recent projects LatentView Analytics has worked on related to supply chain analytics that you can discuss? Currently we’re working on several interesting projects. We’re helping some big name retailers understand how in an omni-channel environment they can understand their net cost for every consumer channel. There are certain aspects where it becomes not just a supply chain solution. Once you understand the optimal channel mix, you also have to take into account downstream promotion, and make the data actionable and profitable. We’re also doing some work in supply chain and predictive analytics. In the US market, over the past two years, there have been more occurrences of incorrect delivery windows, due to shortages of supply. This creates both a greater cost to the company, as well as operational inefficiency. We’re now looking at a predictive model that compiles and analyses data to help more accurately predict arrival times of packages for consumers.

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PEOPLE

n i T N A H P E L E e Th : m o o al r 62

t i g i d e th d e n n unpla e m i t n w do

Mark Homer, VP Global Customer Transformation, ServiceMax , discusses how businesses must improve asset management and servicing to reduce unplanned downtime pressure due to a growing reliance on automation and digital transformation WRITTEN BY

J U LY 2 0 1 9

MARK HOMER

a n z . b u s in e s s c hie f. c o m

PEOPLE

s industrial automation continues to digitse, one area in particular is becoming a critical area of concernâ&#x20AC;&#x201C;

unplanned downtime. The shift to outcomebased business models, equipment assets becoming more sophisticated and connected,

and of course, the pervasive and increasing reliance on machines, are all adding to the pressure to avoid outages. Mitigating downtime is now a strategic priority in the digital age. Take power as an example. In the US, generating units are unavailable on average for 15% of 64

the time due to outages and maintenance. In fact, 6% of the time they are unable to meet demand at all.Â And the Energy Information Administration highlights that a further 6% of electricity is lost in transmission and distribution due to both technical factors and outages. The growing reliance on automation is already widening performance gaps. Businesses are losing sight of assets, especially in terms of efficiency, leading to a fractured insight of manufacturing or service delivery. The upshot is that unplanned downtime becomes a real problem and even worse, the lack of visibility leads to an unnecessary lengthening of recovery time. Closing this downtime gap is a fundamental step in an organisationâ&#x20AC;&#x2122;s digital maturity, and a core part of their transformation journey. J U LY 2 0 1 9

“ The growing reliance on automation is already widening performance gaps” — Mark Homer, VP Global Customer Transformation, ServiceMax

a n z . b u s in e s s c hie f. c o m

PEOPLE

According to a recent Vanson Bourne global study After The Fall: Cost, Causes and Consequences of Unplanned Downtime, 82% companies have experienced at least one unplanned downtime outage over the past three years, and two on average. These outages have lasted four hours. Depending on the company and type of equipment, this can cost organisations anywhere from $50k-$150k per hour for say, a medical device company, and up to $2m for a major outage on an industrial critical asset. (Aberdeen estimates the cost across all businesses

to be $260,000 an hour). The research also revealed high levels of asset estate ignorance across organisations, with 70% of companies lacking full awareness of when equipment is due for maintenance, upgrade or replacement. In addition to financial losses, the research found that almost a third of respondents said they were unable to service or support specific equipment assets, while 65% of respondents from the energy and utilities sector, and 62% from the medical sector cited losing the trust of their customers as J U LY 2 0 1 9

CLICK TO WATCH : â&#x20AC;&#x2DC;SERVICEMAX DAY IN THE LIFE OF TECHNICIAN OVERVIEWâ&#x20AC;&#x2122; 67 a possible impact of suffering a high-

industrial digital strategies. Key to this,

profile incident or disaster. Across all

is an understanding of and investment

sectors, around one in ten admitted

in field service management and asset

their company would never recover

performance management capabilities.

from such critical incidents and would

According to Vanson Bourne, eight

ultimately cease to exist. Nobody wants

in ten companies have already

to be blindsided with those sorts of

recognised this, at least that digital

numbers. But what are companies

tools can improve visibility of assets

doing about it?

and help eliminate unplanned down-

The research hints at a tipping point

time. Around 50% of companies

in recognition of the problem and

confirmed they plan to invest in field

planned investment to address it. Over

service and asset management

time, zero tolerance and zero unplanned

technologies in the next three years,

downtime will become the norm as

while 72% of firms claim that zero

companies develop and invest in their

unplanned downtime is now a number a n z . b u s in e s s c hie f. c o m

PEOPLE

one priority. So, the message is sinking in at least. The challenge for most businesses is to digitally transform without losing oversight of key products, services and of course assets. Digital transformations do not automatically improve control and visibility. Companies need to pursue a service-led approach to business, to ensure that their ability to manage the actual assets that make products or ensure services run smoothly are always up and running. A clear asset management and predic68

tive maintenance strategy should ensure that businesses take the right path towards reducing, if not completely eliminating downtime. Understanding problems before they happen and having knowledgeable

within the next two years and you have a recipe for transformation. We often hear the phrase, â&#x20AC;&#x2DC;you cannot

and digitally-empowered service tech-

account for human errorâ&#x20AC;&#x2122; but that seems

nicians to ensure the smooth running

illogical in todayâ&#x20AC;&#x2122;s connected world. We

of assets will go a long way to making

have the technology to not just account

this happen. A digital twin of physical

for human error but to eradicate it. The

assets will help considerably here, and

internet of things with the proliferation

the research has revealed that around

of affordable and reliable sensors is

54% of companies are planning

changing the way in which we can view,

to invest in a digital twin by 2020.

manage, service and support technol-

Throw-in the fact that field service

ogy, processes and any physical object.

is expected to become a primary

By mirroring a process, product or

revenue driver for most businesses

service into a virtual world, we can

J U LY 2 0 1 9

“ Digital transformations do not automatically improve control and visibility” — Mark Homer, VP Global Customer Transformation, ServiceMax

create environments in which machines

turbines. Easy access to this combination

can automatically analyse performance,

of deep knowledge and intelligence

warn of impending issues, identify

about your assets paves the road to

existing or potential errors and even

wider optimisation and business

suggest part upgrades or changes to

transformation.

procedures to make them more efficient.

Digital twin technology spans across

This is the digital twin idea. As a con-

all industries where the value is in assets

cept, it’s been around for a while (NASA

and more generally complex systems.

used it on early space missions) but the

Its ability to deliver early warnings,

emergence of IoT has made it a com-

predictions, and optimisation is fairly

mercial reality. Digital twin eliminates

universal. In time, I think we’ll see the

guesswork from determining the best

concept of a digital twin to be applied

course of action to service critical

to human beings as well, playing a sign-

physical assets, from engines to power

ificant role in healthcare. a n z . b u s in e s s c hie f. c o m

PEOPLE

“ Digital twin technology spans across all industries where the value is in assets and more generally complex systems” — Mark Homer, VP Global Customer Transformation, ServiceMax

However, just mirroring is not enough. If the aim is to achieve zero downtime or at the very least, overall insight into on-going product and process performance, the digital twin has to be analysed and that analysis has to feed other functions. What the digital twin produces, when bundling data with intelligence, is a view of each asset’s history and its potential future performance. The digital twin can use historical data and current data to provide a complete picture of a particular asset, its past performance, what it should be J U LY 2 0 1 9

achieving now and its likely end of life date, when it would be predicted to be less efficient. This sort of knowledge is gold dust for product designers and manufacturers as it can feed back accurately, which parts work well and where machines would need improving or upgrading. Combined with the knowledge of field service professionals this makes for a powerful tool for upselling products and services to customers. Any new ideas or enhancements can be fully supported with data analysis and perhaps even simulations to illustrate how new parts and functions would improve performance. It offers justification and also accountability and should cut through irrelevant or unsuitable product or service ideas. Itâ&#x20AC;&#x2122;s transforming service at the edge by bringing together all the facets that make businesses and machines tick - and goes a long way to creating a world of zero unplanned downtime.

a n z . b u s in e s s c hie f. c o m

S U S TA I N A B I L I T Y

Social impact: balancing profit and purpose Natasha Mudhar, Global CEO of Sterling Group and The World We Want, discusses why CSR should be a company-wide initiative rather than just ticking a box WRITTEN BY

J U LY 2 0 1 9

NATASHA MUDHAR

a n z . b u s in e s s c hie f. c o m

S U S TA I N A B I L I T Y

hile most corporates and

CSR is a means for companies to

businesses have imple-

bring benefit to themselves and employ-

mented a social impact

ees whilst also benefiting society. While

strategy, many are typically incongru-

businesses are becoming increasingly

ent with the companyâ&#x20AC;&#x2122;s profitability

aware of the benefits of having such

and growth objectives, and are often

a strategy, they are still lacking in aware-

rendered obsolete. Effective social

ness as to how deep a social impact

impact strategies need to be ingrained

strategy needs to be embedded in

in the very fabric of a companyâ&#x20AC;&#x2122;s

a company and why it needs to be

corporate DNA, and not just a tick in

embraced in this way.

the box. Companies are still failing to

A global study by the SEFORIS project

grasp how having an effective social

(the worldâ&#x20AC;&#x2122;s largest study of social

impact strategy is key to long term

enterprises to date) has revealed how

growth and viability.

companies delivering inclusive growth

J U LY 2 0 1 9

by implementing a social impact strategy

purpose alongside each other. In order

are also seeing rapid growth in revenue.

for a company to truly thrive, it needs to

Effective social impact strategies are

be both profitable and purposeful

designed to improve a companyâ&#x20AC;&#x2122;s overall

simultaneously. An organisation that is

mission, not just its brand identity. Not

both profit and purpose driven provides

to be confused with marketing or

mobility to its employees and resourc-

corporate philanthropy, social impact

es in a way that is incomparable. For

strategies provide a concrete plan that

a business to grow, purpose needs to

has quantifiable business outcomes

be embedded in its core. Companies

combined with a measurable and defin-

need to do well by doing good.

itive societal impact. It is no longer enough to be just profit

In order to address this, companies must fully understand how their employ-

driven. What makes companies stand

ees can be one of their biggest assets

out is their ability to place profit and

to expand their social impact footprint. a n z . b u s in e s s c hie f. c o m

S U S TA I N A B I L I T Y

“ CSR is a means for companies to bring benefit to themselves and employees whilst also benefiting society” — Natasha Mudhar, CEO, Stirling Group and The World We Want

Exhibiting a strong social impact strategy not only enhances trust among the public and makes the company attractive to prospective employees but also results in a more engaged workforce, geared to generate not only revenue, but valuable channels for marketing and public relationships. The people of a business provide the most genuine representation of a company’s brand and value, organisations need to remember this when considering social impact.

J U LY 2 0 1 9

Employees are much more engaged

and are not measurable against an

and satisfied when given the opportu-

embedded, well-implemented social

nity to perform impactful work. This will

impact strategy, focusing on the day-

result in a stronger feeling of fulfilment

to-day contributions towards community

and purpose amongst employees and

engagement as opposed to the occa-

essentially enhance a positive impact

sional donation or charitable event.

in the workplace. Studies have shown

Scaling up social impact needs to be

how corporate social responsibility has

a multi-sector process. Effective cross-

been highlighted as one of the key most

sector collaboration will enable new

important drivers of employee engage-

techniques and approaches to be

ment, and engaged employees are

deployed to achieve better social

effective workers and drive results.

outcomes. The combination of public,

Weak outreach efforts to the community should no longer be acceptable

private and social sector collaboration can address complex social challenges

E XE CU T I VE PRO FI LE

Natasha Mudhar Natasha Mudhar is an international communicator and director working on some of the most socially relevant global campaigns. She is also Global CEO of Sterling Media, the multi-disciplinary, international business consultancy with a robust communications backbone, established in 1995. Representing SMEs, FTSE 100 companies including billion-dollar hedge funds, as well as disruptors, innovators and high-profile celebrities, Mudharâ&#x20AC;&#x2122;s insight and global understanding in the realm of business, brand development, market growth and entry strategies has assisted major players in aligning their vision with their business strategies.

a n z . b u s in e s s c hie f. c o m

S U S TA I N A B I L I T Y

“ Weak outreach efforts to the community should no longer be acceptable” — Natasha Mudhar, CEO, Stirling Group and The World We Want

by pulling resources from various players to ensure the improvement of effectiveness and efficiency of the services companies can offer to the public through joint efforts. Too often public, private and social sectors are segregated and siloed, with their resources fragmented, they need to work together towards common goals and enable mutually desired social outcomes. Who does the responsibility lie with? It is up to the company’s leadership to ensure that social impact is at the top J U LY 2 0 1 9

of the business agenda. They must ensure that an effective strategy is embedded into the companyâ&#x20AC;&#x2122;s day-today workings, prioritising long-term value in a way that mutually benefits both employees and society at large. CEOs must outline clear objectives and purpose of the company beyond financial touchpoints, defining their values. It is important that these guiding values permeate every decision-making process, from environmental footprint to social impact to investment decisions. Businesses must consider social impact as a company wide initiative and not just a tick in the box. Otherwise, they risk losing the trust of the public which can be extremely damaging in the long term. In this age of heightened transparency and increased accountability, companies cannot afford to leave this issue unaddressed. The consequences in doing so can be profound.

a n z . b u s in e s s c hie f. c o m

CITY FOCUS

City Focus

MELB MELBO O Business Chief takes a look at the city of Melbourne, capital of the south eastern state of Victoria, profiling the transportation links and green spaces that make the city tick WRITTEN BY

J U LY 2 0 1 8

WILLIAM SMITH

RNE OURNE OU a nz .busi ne ssc h ief. com

CITY FOCUS | MELBOURNE

apital of the south-eastern Australian state of Victoria, Melbourne sits on the shore of Port Phillip Bay, which flows out

into the Bass Strait separating Australia proper

from Tasmania. As of the last Australian census in 2016, the city had a population of 4,485,211, behind only Sydney in both Australia and Oceania at large. In 2017-18, SGS Economics & Planning said Melbourne’s GDP was $351bn, representing 19.3% of national GDP. Melbourne was also said to represent 82.7% of Victoria’s GDP. Although at the time of its founding its geography wasn’t conducive to shipping, 19th 82

century engineering works made the city more accessible by sea. Nowadays, the Port of Melbourne describes itself as the largest container port in Australasia. During its development, the city was influenced by the garden city movement, which was founded in the United Kingdom in 1898, advocating the consideration of greenbelts in city planning. Indeed, a suburb of the city is named Garden City in recognition of the movement, and Melbourne as a whole is renowned for its garden spaces, such as the Victorian era Melbourne Royal Botanic Gardens in the centre, south of the river Yarra, and Fitzroy Gardens near the Melbourne Central Business District in the east of the city. Outside of the city’s immediate J U LY 2 0 1 8

â&#x20AC;&#x2DC; The Port of Melbourne describes itself as the largest container port in Australiaâ&#x20AC;&#x2122;

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CITY FOCUS | MELBOURNE

environs the spirit still persists, with

which was renamed Telstra in 1993. From

protected national parks on the coast

1997, the company was slowly privatised,

such as Mornington Peninsula and Port

completing its journey in 2011. Recently

Phillip Heads Marine National Park.

the company was the first to launch a 5G enabled device in Australia. Employing

TELSTRA

32,000 people, the firm reported its rev-

Australiaâ&#x20AC;&#x2122;s largest telecommunications

enue as being AU$26bn in 2017.

company, Telstra is headquartered in the

Telstra Corporate Centre, one of the top

BHP

10 largest skyscrapers in the city. The

The recently renamed BHP is an Anglo-

company has its origins in the Postmas-

Australian dual-listed mining company,

ter-Generalâ&#x20AC;&#x2122;s department, a government

headquartered in London and

organisation founded in 1901. In 1975, its

Melbourne. Trading as BHP Billiton until

telecommunications responsibilities

2018, they were formed in 2001 from

were spun off into Telecom Australia,

the merger of Anglo-Dutch Billiton with

J U LY 2 0 1 8

CLICK TO WATCH : â&#x20AC;&#x2DC;HOW TO EXPERIENCE MELBOURNE LIKE A LOCAL WITH DYLAN ALCOTTâ&#x20AC;&#x2122; 85 the Australian Broken Hill Proprietary

history back to the 1834 founding of

Company. In 2018, their employees and

one of its predecessors, the Commercial

contractors totalled over 62,000 with

Banking Company of Sydney. Despite

revenue amounting to US$43.6bn. The

its name, it is not confined to the coun-

company mines products such as alu-

try and also serves New Zealand via its

minium, copper, uranium, and titanium,

subsidiary, Bank of New Zealand. The

with operations in countries including

company reported its 2018 revenue

Australia, Chile and Canada.

as being AU$19.1bn, and in 2016 they employed over 35,000 people.

NATIONAL AUSTRALIA BANK National Australia Bank (NAB) is gen-

TRANSPORTATION

erally regarded as the smallest of the

As well as being a financial centre,

big four Australian banks, alongside

Melbourne is also notable for its trans-

ANZ, Westpac and CBA. It was formed

portation links, via both sea and air.

in 1982 via merger, and can trace its

The former is served by the aforemena nz .busi ne ssc h ief. com

CITY FOCUS | MELBOURNE

‘ The city was influenced by the garden city movement, advocating the consideration of greenbelts in city planning’ 86

tioned Port of Melbourne, which pro-

in 2015. Routesonline reported in 2018

cesses over 7,200 containers daily.

that the route between the two airports

Annually, the port sees around 3000

was the second busiest in the world,

ship visits, and features more than 30

carrying over 9mn passengers between

berths, facilitating a total trade value of

the two cities.

around AU$102bn. As for air links, the

Upcoming events in the city included

city is served by Melbourne Airport,

the Australia-China Economic Ties: Time

which opened in 1970 to replace the

to Build Confidence conference on the

nearby Essendon airport. More focused

12th July at the Melbourne Convention

on passengers than cargo, the Bureau

and Exhibition Centre, as well as the

of Infrastructure, Transport and Regional

Australian Agriculture Immersive Tech-

Economics found it to be the second

nology Conference from the 10th to

busiest in Australia after Sydney airport

the 11th of July at Melbourne’s South

J U LY 2 0 1 8

Wharf. A thoroughly vibrant, modern city, Melbourne is remarkable for both the diversity of its economic success and its liveability. Ever since the 1850â&#x20AC;&#x2122;s Gold Rush that saw the cityâ&#x20AC;&#x2122;s rapid expansion, Melbourne has maintained an enterprising spirit that informs its success in industries ranging from finance and manufacturing to transportation and tourism.

a nz .busi ne ssc h ief. com

T O P 10

most influential brands inAsia Business Chief Asia ranks the top 10 brands in Asia, according to Forbes Magazine WRITTEN BY

J U LY 2 0 1 9

HARRY MENEAR

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T O P 10

90 90

Uniqlo [ Japan ]

Headquartered in Tokyo, the Uniqlo clothing brand is a subsidiary of Fast Retailing. Founded in 1984, the brand originally traded under Uniclo (a shortening of Unique Clothing Company), but switched to Uniqlo following a typo on the companyâ&#x20AC;&#x2122;s Hong Kong registration form. Uniqlo has over 1,900 stores worldwide, according to Forbes, and its brand was valued in 2018 at US$7.5bn, a 12% increase yearover-year.

www.uniqlo.com

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CLICK TO WATCH : â&#x20AC;&#x2DC;PANASONIC CES 2019 BOOTH HIGHLIGHTSâ&#x20AC;&#x2122; 91

Panasonic [ Japan ]

Founded in 1918 and based in Kadoma, Japan, the Panasonic Corporation engages in the design, manufacture and sale of electronics, including white goods, health and beauty products, light fixtures, photovoltaic systems, air-conditioning equipment, car-usemultimedia equipment, mobile phones, projectors and digital cameras, according to Forbes. It is the oldest company in the top ten. The Panasonic brand was valued at $7.8bn, representing a year-onyear growth of 12%.

www.panasonic.com

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Huawei [ China ]

The only Chinese company in the top 10, Shenzhen-based telecommunications and technology company Huawei was founded by former Chinese military officer Ren Zhengfei in 1987. According to Forbes, the company now employs 180,000 people across 170 countries and, with a 20% market share, is the largest smartphone distributor in China. In 2018, the Huawei brand was valued at $8.4bn, a 15% increase over 2017.

www.huawei.com

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T O P 10

Hyundai

[ South Korea ] Seoul-based car brand Hyundai Motor was founded in 1967 and engages in the manufacture and distribution of motor vehicles and railways, according to Forbes. In 2018, Hyundai reported net sales of $85.9bn, its highest of all time. While the companyâ&#x20AC;&#x2122;s asset portfolio has also grown by over $50bn over the past five years, 2018 represented a continuation of a decline in profits now amounting to $4.8bn. Forbes valued the Hyundai brand at $8.7bn in 2018, a 2% decline year-over-year.

www.hyundai.com

J U LY 2 0 1 9

Nissan [ Japan ]

The Nissan Motor Company engages in the manufacture and sale of automotive parts and marine equipment, according to Forbes. Headquartered in Yokohama, Japan, Nissan is ranked 94th on Forbes list of the worldâ&#x20AC;&#x2122;s Top Regarded companies, and 52nd in terms of revenue. In 2018, the company reported $1bn in revenue growth, up to $106bn, while also securing over 60% growth in profit, up to a ten-year high point of $7.4bn. Forbes valued the Nissan brand at $9.4bn in 2018, up 5% year-over-year.

www.nissan-global.com

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From Inspiration

to Innovation

Lexus [ Japan ]

The luxury vehicle brand of Toyota Motor Company, Lexus was found-ed in 1989 and is headquartered in Nagoya, Japan. Lexus is ranked by Forbes as the fourth-largest luxury brand worldwide behind third place Audi. The brandâ&#x20AC;&#x2122;s vehicles were deemed the most dependable new cars on the market for the past seven years by JD Power Associates. The Lexus brand was valued at $9.5bn in 2018, a 4% increase in comparison to the 2017 financial year.

www.lexus.com

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T O P 10

Sony [ Japan ]

Headquartered in Tokyo, the Sony Corporation engages in the development, design, manufacture and sale of electronic equipment and software. The company is ranked 42nd on Forbes list of top regarded companies, and 54th on its list of best employers for graduates. In 2018, Sony reported record profits of $4.4bn and a return to profitability after $393mn losses in 2017. Its brand is valued at $10.2bn, which represents a 23% increase in value year-on-year, the largest growth in brand value of any company in the top ten.

www.sony.co.uk 98 98

J U LY 2 0 1 9

Honda [ Japan ]

Founded in 1948 and headquartered in Tokyo, Japan, the Honda Motor Company engages in the design, development, manufacture and sale of cars, motorcycles and power products. In 2018, the company reported record figures for sales, profits and asset valuation, with $138.6bn, $9.6bn and $151.7bn respectively. Forbes valued the Honda brand at $25.5bn in 2018, which represents a 6% growth year-on-year.

www.honda.com

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T O P 10

100 100

Toyota [ Japan ]

The Toyota Motor Corp is the largest manufacturer and seller of motor vehicles and auto parts worldwide. The company ranks 12th on both of Forbes lists of top regarded companies and the Global 2000. Toyota reported record figures for revenue, asset valuation and profits in 2018 with $265.2bn, $473bn and $22.5bn respectively. The Toyota brand was valued by Forbes at $44.7bn in 2018, representing a 9% increase year-on-year.

www.toyota.com

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101

CLICK TO WATCH : ‘HOW BIG IS TOYOTA?’

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T O P 10

Samsung [ South Korea ]

The Samsung Electronics Company is headquartered in Suwon, South Korea, and is the largest manufacturer of electronics, computer peripherals and cell phones in Asia. The company employs 320,000 people, according to Forbes, making it the largest employer in the top ten by almost 200,000 jobs. In 2018, Samsung’s achieved a two-fold increase in profits, up from $19.3bn in 2017 to $41bn in 2018. The Samsung brand was valued by Forbes at $47.6bn in 2018, up 25% yearon-year, the second-largest increase in valuation on the top ten list.

www.samsung.com 102 102

CLICK TO WATCH : ‘SAMSUNG GALAXY – BE TOGETHER’

J U LY 2 0 1 9

103

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104

THE WAREHOUSE GROUP: driving omnichannel retail through supply chain innovation WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

STUART IRVING

J U LY 2 0 1 9

105

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T H E WA R E H O U S E G R O U P

Chris Foord, Chief Logistics Officer at The Warehouse Group, discusses the supply chain and logistics strategies that are driving the company’s development into a true omnichannel retailer

ounded by Sir Stephen Tindall in 1982, The Warehouse Group (TWG) has become New Zealand’s largest non-food retailer. Across

its laudable brand portfolio – comprised of The Warehouse, Noel Leeming, Warehouse Stationery, Torpedo7 and 1-Day – the Group operates over 250 106

stores throughout New Zealand while working towards creating a true omnichannel retail experience. Chris Foord, Chief Logistics Officer at the company, is overseeing the ongoing evolution of its logistics and fulfilment functions; a role whose industry-wide importance continues to become a recognised core element of any successful modern business. “Like many organisations, TWG has realised the competitive advantage of supply chain, from sourcing and distribution through to the store and the customer,” says Foord. “Rather than simply being a back-of-house transactional function, we are now seen as an efficient and effective supply chain that enables a competitive advantage in the wider organisation’s strategy.” Foord notes that this centralisation of the supply chain function within the overarching business strategy will become more entrenched as J U LY 2 0 1 9

ANZ$3bn Approximate revenue

1982

Year founded

12,000

Approximate number of employees

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107

T H E WA R E H O U S E G R O U P

“ Where there was a buffer between distribution and the customer via the in-store experience, there’s now a direct physical handover” — Chris Foord, Chief Logistics Officer, The Warehouse Group

108

J U LY 2 0 1 9

CLICK TO WATCH : ‘WELCOME TO RETAIL CAREERS AT THE WAREHOUSE GROUP’ 109 omnichannel retail continues to become

expanded its data science team to

an expectation in the industry. “Where

better leverage the latent insights of its

there used to be a buffer between

data sets, and already has a history of

logistics or distribution and the customer

implementing automation technologies

via the in-store experience, there’s now

that will continue through the worldwide

a very direct physical handover in terms

shift to Industry 4.0. “Many years ago,

of the delivery connection and interaction

when we built one of our larger distribu-

as we fulfil orders.”

tion centres, we included automation

The changing needs and expectations

within it that was then viewed as state-

of the customer, centred around speed,

of-the-art,” Foord explains. “That stood

convenience, choice and the infamous

us in great stead for a long time, and

last mile, have inspired a vast range of

we’re now looking at ways to make that

implemented solutions that drive in-

automation smarter to meet both our and

creased efficiency, sustainability and

the customer’s growing needs.” TWG is

customer satisfaction. TWG has recently

currently in the process of introducing a nz .busi ne ssc h ief. com

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111

its new warehouse management system,

decision-making based on real-time

developed by Manhattan Associates,

information and data, using interweaving

that is set to overhaul the efficiency of

capabilities to assign tasks based on the

its warehouse operations. “It’s going to

most productive and efficient route.”

significantly improve our distribution

Foord summarises the effect of these

and logistics centre capability, enabling

elements in the replacement of restrictive

efficiencies that will save north of

manual tasks with automated technol-

NZ$5mn each year,” enthuses Foord.

ogies. Robotic process automation (RPA)

“The new system will have three key

has been used to automate a range of

benefits for our operations: allowing us

manual tasks on the finance side, and

to have greater visibility of all of our

machine learning has been deployed to

different departments and tasks in the

regularly clean the firm’s master data to

operation; enabling dynamic organisation

maximise its value for generating insights.

of tasks and orders; and facilitating

“It’s freed up our team to do more a nz .busi ne ssc h ief. com

T H E WA R E H O U S E G R O U P

“ The owner’s mindset epitomises the transformation journey that we’re on” 112

— Chris Foord, Chief Logistics Officer, The Warehouse Group

value-added activity, and ensures that we

clarity of objectives, are offered regular

are more targeted and effective with our

feedback and coaching, and are

operations,” says Foord.

exposed to development opportunities

This mentality of harnessing technol-

to stretch their skills and grow.” TWG’s

ogy to benefit teams and drive efficien-

commitment to its people is matched by

cy is central to TWG’s people-led

its commitment to the environment, with

business ethos. “When you’re going

a sustainability strategy aimed at

through a transformation, you have to

reducing the company’s impact on the

drive a cultural shift as well,” says Foord.

environment and encouraging sustain-

“Our focus throughout has been to get

able behaviour in team members,

the culture right and thereby enable the

customers and suppliers. “Sustainability

transformational outcome. We have

has become a huge focus for the

been developing a performance culture

industry, and we are extremely proud to

where we ensure that people have

have recently announced that we are

J U LY 2 0 1 9

carbon neutral,” says Foord. In February 2019, TWG achieved the internationallyrecognised carboNZero certification, becoming the first large company in New Zealand and the third major retailer in the world to do so. “While we’re now carbon neutral, which is amazing, we’re not resting on our laurels. We’re continuing to implement more sustainable methods of shipping and domestic transportation. For example, maximising our container loads and, where feasible, partnering with shipping lines who have the more efficient vessels in this space.” Serving as an umbrella for each of

E XE CU T I VE PRO FI LE

Chris Foord Chris Foord leads all aspects of Logistics and Fulfilment across The Warehouse Group, including The Warehouse, Warehouse Stationery, Torpedo 7 and Noel Leeming brands. Chris is a supply chain professional with strong international experience across the value chain in multinational retail, FMCG and commodity organisations. Chris joined The Group from Fonterra Co-operative Group Ltd, where he was the General Manager of Global Supply Chain Development.Prior to Fonterra, Chris played key roles in Logistics, planning, transportation and tech re-platforming at Sainsbury’s and Marks & Spencer UK. Chris has a Bachelor of Science (with Honours) from University of Durham UK.

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113

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these endeavours and successes, TWG has established a strategic sustainability plan to drive it towards the goal of being New Zealand’s most sustainable retailer. The plan is based on three key pillars: product, planet and people. “From a supply chain and logistics point of view, we’re primarily focused on the products stream,” explains Foord. “For example, efficiencies in transportation and delivery as well as packaging. It’s about finding that balance between protecting the product from damage and meeting customer expectations whilst reducing unnecessary waste and/or plastic.”

115

Foord adds that, through its online fulfilment operations, TWG is currently transitioning away from plastic fillers

highlight. “It’s all about our people,” he

and protection to 100% recyclable, paper-

says. “The transformation has enabled

based products. TWG is also paying

and celebrated the owner’s mindset:

consistent attention to the development

people treating the business as if it’s

of electric vehicles (EVs), building on the

their own, looking after every dollar,

fact that the majority of vehicles in its

every cent, to ensure that we are creating

customer delivery fleet are hybrid. The

value for both the organisation and our

firm’s light vehicle fleet is incrementally

customers.” He adds that the process

shifting over to full-electric alternatives,

has also provided employees with the

with 30% of its vehicles in this class set

tools to develop and execute ideas at

to be replaced with EVs this year.

pace. “One thing our business has never

Of the key successes of the transfor-

lacked is good ideas,” says Foord, off-

mation, Foord doesn’t hesitate to

ering an example of the internal inno-

earmark the firm’s culture as a particular

vations that this culture has enabled. a nz .busi ne ssc h ief. com

T H E WA R E H O U S E G R O U P

116

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“ One thing our business has never lacked is good ideas” — Chris Foord, Chief Logistics Officer, The Warehouse Group

117

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119

“One of our team members saw an

spurred by a culture that encourages its

opportunity to improve our fulfilment

employees to not only think outside the

centre packing station. As packing

box but also take ownership of TWG’s

materials were stored in a number of dif-

successes and challenges. “The owner’s

ferent areas, processing an order was

mindset epitomises the transformation

time-consuming and inefficient. She

journey that we’re on,” says Foord.

designed a new packing station that

Championing the successes of its

keeps all the materials together, and her

digital and supply chain transformation

partner constructed a demo to test it

in a holistic, Group-wide sense, TWG’s

out. Through that, we’ve ended up with

2018 annual report featured elements

an incredibly ergonomically-designed

of integrated reporting to highlight the

packing station that has yielded an 8%

progress of its strategy as well as its

increase in the number of orders we

commitment to its people, community

can process.” This type of innovation,

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J U LY 2 0 1 9

“ We’re now looking at ways to make our automation smarter to meet both our and the customer’s growing needs” — Chris Foord, Chief Logistics Officer, The Warehouse Group

121 beyond the financial details typical of

management system and then to

an annual report, TWG zeros in on the

optimise that across our network,” he

finer points of its transformation,

says. “As with many global retailers,

highlighting innovation, sustainability,

we’re moving towards a seamless

diversity, talent development and its

omnichannel experience, but we’re not

work within New Zealand communities.

quite there yet,” he says. “Our goal is to

In sum, its new reporting strategy

be able to serve our customers in

focuses on the factors that exemplify

whatever way they want, irrespective of

its people-led focus and ethos. Looking

how they choose to engage with us. It’s

forward, Foord sees nothing but a con-

about us being able to offer a suite of

tinuation of the bold and exciting strategy

channels that can sustainably deliver

that is leading the Group to success

on that promise.”

and the realisation of a next generation retail experience for its customers. “The key next step for the Logistics function is to embed the new warehouse a nz .busi ne ssc h ief. com

122

VICTORIA POLICE : becoming more agile through digital transformation WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

MIKE SADR

J U LY 2 0 1 9

123

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VICTORIA POLICE

Victoria Police are working with partners to replace legacy systems and improve agility for officers in the field. Stephen Fontana, the organisation’s CIO, tells us about the journey…

V 124

ictoria Police was established to serve the Victorian community, and any developments to the

organisation will always be centred around that purpose. “The key functions we perform are preserving the peace, protecting life and property, preventing the commission of offences, detecting and apprehending offenders and helping those in need of assistance. We employ over 20,000 staff and provide 24/7 services to the community,” says Stephen Fontana, Assistant Commissioner and Chief Information Officer (CIO) at Victoria Police. Fontana has worked for Victoria Police for the past 44 years. Despite his primary background being centred around operational policing, just over 12 months ago Fontana took the role of CIO in order to oversee the organisation’s modernisation strategy. “As J U LY 2 0 1 9

125

â&#x20AC;&#x153; As a result of the Blue Paper and a subsequent report, a capability plan was put together to map out how we could achieve our visionâ&#x20AC;? Stephen Fontana, Assistant Commissioner and Chief Information Officer, Victoria Police a nz .busi ne ssc h ief. com

VICTORIA POLICE

“ When I joined Victoria Police, we had type– writers with carbon paper” Stephen Fontana, Assistant Commissioner and Chief Information Officer, Victoria Police

CIO, I’m in charge of the information systems and security command. Even though I don’t have a technical background, the Chief Commissioner asked me to take on the role to manage the continued modernisation of Victoria Police. I’ve learned a lot as I’m going along, but I’ve got a really good team to support me and advise me as we move forward,” notes Fontana. The organisation is currently undergoing a large-scale modernisation programme that will see updates made to many legacy systems and innova-

126

tions added to the force to improve efficiencies. “When I joined Victoria Police, we had typewriters with carbon paper – we didn’t have a mainframe computer at that time. It has since changed a lot, and we have even seen significant transformation since I’ve taken my latest role. Over this period, we have brought together three separate work areas and merged them into one large command – we put all units working in information technology and communications under one umbrella,” explains Fontana. “We’re still transitioning as we continue to roll out services to Victoria Police. We’re J U LY 2 0 1 9

CLICK TO WATCH : ‘TESLA POLICE CAR – STATE HIGHWAY PATROL’

currently operating on a plan, build, run,

was put together to map out how we

governance structure, but are continu-

could achieve our vision. The govern-

ing evolve to a model that is much more

ment has invested quite significantly in

focussed on improved service delivery

Victoria Police over the past few years

across the organisation.”

to enable this goal,” reveals Fontana.

As Victoria Police undergoes its

According to the CIO, more than 3,000

digital transformation journey, the team

new members of staff will be hired over

looks towards the Blue Paper (A Vision

the next three years, including police

for Victoria Police in 2025) – a strategy

and protective services officers and

established by the former Chief Com-

other specialists. The money invested

missioner. The plan outlines initiatives

into the force is also being spent on

until 2025, creating a modern vision for

new equipment, vehicles and technol-

the force. “As a result of that paper and

ogy. “Hence, that’s why we brought all

a subsequent report, a capability plan

these different units together under a nz .busi ne ssc h ief. com

127

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130

one command, so we could better co-

management and technical expertise.

ordinate and manage these projects,”

As we continue to develop systems,

he notes.

where we might lack the capabilities,

As part of the programme, Victoria

they can bring resources in very quick-

Police selected PwC as a strategic

ly. They’re also helping us build our

partner to enable change across the

own internal capability so that once

organisation. “PwC has been working

we finalise this programme of work,

with us for a number of years now on

we’ll have a capability to continue on,”

this massive reform project. They’re

Fontana says.

providing a whole range of skillsets

With more than 350 applications and

in terms of change management,

numerous legacy systems, becoming

programme management, project

more agile and mobile has been a large

J U LY 2 0 1 9

E XE CU T I VE PRO FI LE

Stephen Fontana, Assistant Commissioner Victoria Police Stephen Fontana has been a member of Victoria Police since 1975 and has spent the majority of his career as a criminal investigator; working at busy metropolitan Criminal Investigation Units, in the Crime Squads and on a number of high profile task force investigations. He also spent a number of years working at the Ethical Standards Department leading investigations into complaints against police and police corruption. Stephen was promoted to the rank of Assistant Commissioner in charge of the State Emergencies and Security Department in early 2008. In June 2011, he took charge of the North West Metropolitan Region which delivers frontline police services for the largest region in the state (1.71 million Victorians living in 14 local government areas). Stephen commenced as the Assistant Commissioner Crime Command on 1 July 2012. In this he managed the portfolios of Specialist Support, Serious Crime (including Homicide and Sex Crimes), Finance & Cybercrime, the State Anti-Gangs Division and Organised Crime across the state. On 1 May 2018 Stephen commenced his current appointment of Chief Information Officer for Victoria Police and in a dualrole also leads the Information, Systems and Security Command (ISSC). In Stephenâ&#x20AC;&#x2122;s current role he is responsible for the governance, strategic direction and management of Victoria Police information technology and communications systems and applications, and for the overall management and strategic direction of enterprise information management and protective security. As CIO, Stephen is a member of the Victoria Police Executive Command. a nz .busi ne ssc h ief. com

131

Connecting to the community, together.

Helping Victoria Police improve community and police safety with connective technology thatâ&#x20AC;&#x2122;s as reliable as it is responsive, ensuring police operations are as productive as they are prevention-focused. This is how we leverage technology-enabled change, information-led intelligence and community-connected channels to improve the lives of all Victorians â&#x20AC;&#x201C; with the multiplying power of communication and compassion.

At PwC, we call this The Together Effect.

task – police officers in the field were having to come back to stations to correspond and complete paper work. More than $500mn has been invested over a four-year period to free up officers’ time. These initiatives fall under what the force calls its Blue Connect programme. “It’s really about enhancing the ability of officers to stay in the field, increasing visibility, and having access to real-time information for improved decision making,” Fontana says. The investment has been channelled to fund over 9,000 mobile devices to be used across the state, such as Apple

“ It’s really about enhancing the ability of officers to stay in the field, increasing visibility, and having access to real-time information for improved decision making” Stephen Fontana, Assistant Commissioner and Chief Information Officer, Victoria Police

iPhones and iPads, with all the devices having been installed with applications

rolled out 4,000 body cameras across

to aid the workers in the field, such as

the state, with the target of reaching

identity checks connected to the na-

6,000 by the end of the financial

tional systems and computer-aided

year and 10,800 by the end of the cal-

dispatch. “With the iPads members can

endar year. “In order to introduce the

receive call-taking and dispatches in

cameras – and even with the mobile

the field. It’s the first time we’ve ever

technology through our life cycle man-

had mapping capability, where mem-

agement program – we’re working

bers can see where units are located

with BlueConnect to upgrade the

state wide in the maps. It’s fantastic for

infrastructure at our stations, making

our members there,” he continues.

them suitable for Wi-Fi connectivity,”

The force has also invested in bodyworn cameras as part of its technology focused initiative. Victoria Police has

Fontana remarks. Motorola is a key partner for Victoria Police, providing mobile technology a nz .busi ne ssc h ief. com

133

We inspire change. Kinetic IT is a leading Australian technology services provider with a focus on building authentic relationships with our customers, crew and communities. We deliver outcome-focused solutions across Australiaâ&#x20AC;&#x2122;s corporate, resources and government sectors, including to Victoria Police.

solutions for the force. In collaboration with Gridstone, Motorola has enabled the organisation to enhance its fleet’s mobility by working in conjunction with project teams to integrate connectivity. The company has supported Victoria Police’s radio network across the state, metropolitan and rural areas. Fontana highlights the upgrades to the rural radio communications, which have recently been encrypted and digitised. The integration of Victoria Police sys-

“ We are delivering major pieces of work, and we’re delivering them on time and within budget” Stephen Fontana, Assistant Commissioner and Chief Information Officer, Victoria Police

tems, both internally and with external partners, is enabled with the help of

alongside 32 police officers at the

the California-based software com-

contact centre. With this new initiative,

pany, TIBCO. As a contracted partner,

citizens of Victoria are able to contact

it provides the enterprise service bus

the police without using the urgent

that enables the interconnection of

and non-urgent numbers. The project

Victoria Police systems and data.

is currently in the stage of a soft launch,

Victoria Police’s recent introduction

with the contact centre commencing

of the Police Assistance Line and On-

its operations in February and pro-

line Reporting provides two additional

gressively rolling-out for State-wide

channels for the community to contact

coverage by July 2019.

police to report non-urgent crimes

“Other programs we’re introducing

and events. Through the work of Serco

with this uplift include the intelligence

Citizen Services, operating on a Sales-

management solution which SAS has

force platform, the company has

enabled,” Fontana reveals. “SAS has

established a call centre and introduced

developed a massive search engine

online reporting to the state. The firm

for us. It has opened up the floodgates

has hired over 200 staff, who work

in terms of access to information for a nz .busi ne ssc h ief. com

135

VICTORIA POLICE

137 intelligence practitioners and investi-

Victoria Police as a managed service

gators. We’re continuing with the

provider. “They’ve been a key partner

development of that and looking to

in all our modernisation project pro-

eventually replace our investigation

grams with life cycle management,

management system. SAS has been

along with BlueConnect,” says

a key partner with us in that particular

Fontana. The organisation’s life cycle

process.” At this stage, Victoria Police

management programme has dual

has around 10 different databases that

goals, including maintaining the

have been connected to the search en-

Police’s fit-for-purpose capability of its

gine, along with its intelligence database

system, such as managing ongoing

and Law Enforcement Assistance Pro-

obsolescence. The other purpose is

gramme (LEAP). The organisation aims

ensuring that the uplift of capabilities

to have another 14 separate databases

required by our strategic program are

linked by the end of this financial year.

being addressed. “We signed the con-

In addition, Kinetic IT works with

tract with Kinetic many years ago, prior a nz .busi ne ssc h ief. com

VICTORIA POLICE

138

J U LY 2 0 1 9

to our investment from the government, so they’ve been on the journey with us all the way – from what was really just an organisation that just did the basics to keep the system running, to a massive development program. Our environment has really changed since they’ve come on board. They’re continuing to work and evolve with us,” he adds. As the force continues on its digital transformation journey to achieve more agile operations, it is important to acknowledge how far it has come. “We wouldn’t have been able to get where we are at the moment without our partners. We’ve built a really good capability, but they’ve really helped us in terms of developing that skill set and technical knowledge. It’s always a challenge when you’re going through such a massive reform programme, but we’ve been really fortunate. We are delivering major pieces of work, and we’re delivering them on time and within budget, which is fantastic. We wouldn’t have been able to do it without that support,” says Fontana.

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140

X O R E FUJI X A I L A R T AUS s

n o i t a d n solid fou y g o l o n h for tec n o i t a m r o transf WR IT TE N BY

O LI V IA M IN N O C K

PR OD UC ED BY

A N D R E W S TU B B IN G

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FUJI XEROX AUSTRALIA

Mike Schembri, Head of Information Management at Fuji Xerox, advises businesses to bring IT up from the basement in order to truly add value

hile the term Xerox is synonymous with old fashioned photocopying, Fuji Xerox is much more than just print. Having evolved

from printing to technology solutions, the company now supports clients in global technology transformations, leveraging the experience that comes 142

with having processed millions of transactions. “We dealt with Big Data before Big Data was cool,” says Mike Schembri, Head of Information Management (IM) at Fuji Xerox Australia. “It’s always been at the heart of our business, and nowadays if you haven’t learned to do that your business fails.” Today, Schembri emphasises, Fuji Xerox now sees itself as a ‘knowledge company’. “One of the main mission statements we have concerns building environments for the creation and utilisation of knowledge. We have an audacious goal that’s bigger than technology or print: for us it’s now about evolving technology solutions. We’re doing more and more work with digital transformation.” Having joined the business solutions behemoth through a series of acquisitions, Schembri brings experience from startups as well as technology J U LY 2 0 1 9

143

roles at global corporations like KPMG, and has successfully run IT transformations including cloud migration. His role as Head of IM is about much more than technology – as tech becomes less of ‘nice to have’ and more of a ‘must have’, it encompasses a wider business strategy, much as the company itself has developed. “One of the things I’ve always been fascinated by is process improvement, particularly lean management: how can you apply lean to business environments outside of the manufacturing space,” he comments. a nz .busi ne ssc h ief. com

FUJI XEROX AUSTRALIA

“ We dealt with Big Data before Big Data was cool” 144

— Mike Schembri, Head of IM, Fuji Xerox Australia

GROWTH THROUGH TECHNOLOGY TRANSFORMATION “The technology piece is in some ways becoming more and more commoditised,” Schembri observes. “It’s all about business value.” A key element of Schembri’s role is working with various partners to deliver the best business transformation results for the company’s clients, which has been especially fruitful when it comes to networks. “We’ve moved to a managed network because it scales really well, and somebody out there can do it better than us.” Schembri adds that the company interviews vendors as thoroughly as it interviews staff, and looks for those who will be as knowledgeable as Fuji Xerox is with its own clients. “Do they come up with value adding solutions? Are they agile and innovative?” “Comscentre has been a really strong partner. They’ve evolved, initially coming in as a managed network partner and are now our network provider,” says Schembri. The firm also enjoys relationships with consultancies such as AK Consulting as well as Protiviti, who Schembri has worked with for a number of years. “Some things they

J U LY 2 0 1 9

CLICK TO WATCH : ‘INVICTUS GAMES SYDNEY 2018: FUJI XEROX AUSTRALIA’

probably understand better than us,”

went on to build capability within Fuji

he comments, adding that strong part-

Xerox, embedding what is now known

nerships are key to the organisation’s

as ‘Compliance in Context’ – this is

‘journey to value’ and Protiviti is a key

the way Fuji Xerox ensures it deploys

element of this philosophy. “As a wholly

sufficient amounts of governance to

owned subsidiary of a Japanese listed

address the real risk.

entity, we are always held to a very high

“As a result of Protiviti’s work our

compliance standard,” Schembri adds.

internal understanding and skill level

“Protiviti engaged with Fuji Xerox five

increased, as did our level of compli-

years ago around some local challeng-

ance,” Schembri adds. “Protiviti also

es we had making sure our local IT was

decreased our spend as we became

compliant.” The organisation initially

more self-sufficient, so that’s a good

dealt with the urgent tasks of reme-

example of a partner demonstrating

diation and risk mitigation, and then

real value to us. Three years ago, when a nz .busi ne ssc h ief. com

145

FUJI XEROX AUSTRALIA

CLICK TO WATCH : ‘FUJI XEROX AUSTRALIA FUTURE THINKING VIDEO’

146

it was decided that Fuji Xerox globally

aged data centre a couple of years ago

should pursue an ISO 27001 certifica-

as part of a hybrid model,” he explains,

tion, we again engaged Protiviti to help

adding that Amazon also sits within this

with the initial ‘heavy lifting’, to upskill

category as a cloud provider. Moving to

local staff and to embed ‘Compliance

the cloud will stand Fuji Xerox in good

in Context’. We achieved the certifica-

stead as it scales its business and

tion on our first attempt, with no areas

develops its customer offering. “It will

of non-conformance, and we’re part-

be more flexible for our purposes, and

nering again with Protiviti to extend

will allow us to provide more flexible

our scope and certification.”

services to our customers, while also

As it migrates more and more data

having the capacity to improve cost.”

to the cloud, Fuji Xerox has also been

While a few years ago, organisations

working with AC3 for a few years. “We

and consumers might have been wary

worked with them and moved to a man-

of the cloud, Schembri sees it as a

J U LY 2 0 1 9

more secure way of storing data than

Throughout clients’ technology

on-premise solutions. “The notion that

and business transformation jour-

an in-house data centre is more secure

neys, Schembri says that Fuji Xerox

than a co-located environment, particu-

is able to bring its knowledge, skilled

larly a cloud environment, is funda-

employee base and carefully cul-

mentally flawed,” he argues, noting

tivated partnerships to bridge the

that experts who manage co-location

gap between commercial and digital.

data centres are more likely to have

“Because we somewhat own the mar-

experience with many security issues

ket in terms of interface and getting

as opposed to individuals from one

into digital, clients look to us to help

company. “You even see government

them with their non digital transac-

is more and more comfortable –

tions too.” Much more than just a tech

they’re signing up for Cloud and Azure.

vendor or software supplier, Fuji Xerox

My sense is that the security argu-

enjoys long term partnerships with its

ment is over.”

clients. “We work through vendor to E XE CU T I VE PRO FI LE

Mike Schembri Mike is the Head of Information Management at Fuji Xerox Australia. He joined Fuji Xerox 2009 initially working with a services start-up who were acquired by Upstream a subsidiary of Fuji Xerox. After ‘falling’ into IT in the 90s Mike has gone on to ‘grow people and teams in technology’ for businesses including Start-ups, Global Tech Vendors, Retailers and Professional Services. Mike also serves as the Chair and provides management consulting for several midsize not-for-profit organisations working both locally and internationally. Mike’s current ‘pet project’ is the establishment of a health clinic in Butanza, Uganda, to be staffed locally but supported by Australian technology companies.

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147

I NN OVATE

TRANSFORM

S U CC E E D

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PROTIVITIâ&#x20AC;&#x2122;S DIGITAL SERVICES OFFERINGS We are living in a time of unprecedented change, one that is exciting for those embracing the opportunities technology and digital capabilities present. However, many are finding it difficult to come to terms with the pace of change and are struggling to cope in this digital age. Protiviti, drawing on our deep competencies in technology, business process, analytics, risk, compliance, transactions and internal audit, helps companies transform for the future, manage the risks that disruptive innovation presents, and embrace opportunities that new and emerging technologies present. The Protiviti Digital Overview sets out key components driving digitalisation initiatives and how we help companies achieve their business objectives. Working with organisations worldwide on a diverse range of digital transformation, we have defined four key components driving digitalisation efforts, as illustrated below. The five elements describe how we help companies succeed.

CUSTOMER ENGAGEMENT

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Ensuring that transformation programs are established, well defined, set up for success and supporting execution.

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Using technology to reinvent Finance, Information Technology, Business Operations, Procurement, Risk Management and Audit.

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Ensuring that the unnecessary barriers to innovation and change that exist within organisations are eliminated.

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Supporting organisations with decision making as they consider whether or how to embrace new or emerging technologies.

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PROTIVITI PARTNERING WITH FUJI XEROX Protiviti has worked collaboratively with Fuji Xerox for five

governance and compliance, cybersecurity, ERP (Enterprise

years assisting them throughout their digital transformation

Resource Planning) solutions, IT service management

journey. Creating a ‘one-team’ environment dedicated to

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achieving Fuji Xerox’s goals and strategic objectives is at the heart of the Fuji Xerox and Protiviti partnership.

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PROTIVITI’S DIGITAL MATURITY ASSESSMENT Our research and experience with organisations around the world indicates that very few organisations are taking the necessary steps they need to become truly digital in nature. They may form a digital veneer around their core capabilities. But being truly digital is changing the core and very few organisations have embraced this. Protiviti enables you to transform the core so that you can continuously innovate across your enterprise. The Digital Assessment is structured around 36 capabilities that we believe digital leaders excel at.

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150

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BEGIN YOUR DIGITAL TRANSFORMATION JOURNEY AK Consulting specialises in the improvement and automation of business processes by delivering innovative solutions enabling enhanced workflow, governance, compliance, visibility and productivity for both local and global organisations across all industries.

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Reviewing Strategy & Performance

guys (though of course beards are “ The notion that an in-house data centre is trendy now) who nobody wanted to talk to, and frankly they didn’t want to more secure than a talk to anybody either – they certainly co-located environment, didn’t want to talk about customers.” particularly a cloud For a successful digital transformation, environment, is bringing the IT department up from the fundamentally flawed” basement to the centre of the organi-

— Mike Schembri, Head of IM, Fuji Xerox Australia

sation is the place to start. With three adopted children himself, Schembri has often threatened to write a book entitled Adopting IT. “IT was

partner to trusted advisor, that’s the

often this group that was trying to find

stage we’re at now,” Schembri explains.

its place in the organisation – the ‘other’

“We dominate a lot of our markets and

guys – and it really needs to be adopt-

have a long history, which is incred-

ed by the business. They often refer

ibly valuable. You maintain relationships

to themselves as ‘IT and the business’,

by understanding the customer: if you

with the business as an ‘other’, while

create solutions that represent value to

someone in sales might talk about

them at a price and business model that

themselves as ‘sales and the rest of

represents value to us, everybody wins.”

the business’.” It’s a change that’s been managed successfully within

BRINGING IT OUT OF THE BASEMENT

Fuji Xerox, but this was not without its

Perhaps the most visible develop-

challenges. “Like all cultural transfor-

ment Schembri has seen – and driven

mations, it was difficult, but we were

– throughout his career has been in

clear that we wanted not a technology

transitioning IT from a single tech

department so much as a service de-

department to a leading element of

partment with a technology speciality.”

any business. “It used to be a very

As part of the transformation,

technical-centric group of bearded

Schembri brought in people from a nz .busi ne ssc h ief. com

153

FUJI XEROX AUSTRALIA

154

non-technical backgrounds to roles

for the soft skills more than the techni-

that required a thorough understand-

cal skills.”

ing of the business. “There’s all of that

Within Fuji Xerox, the IM team had

technical competence you need, but

the aim of becoming known as ‘Awe-

actually for enhancing your business,

some IM’, a central cog in the organisa-

understanding is incredibly powerful.

tion. “We’re visual all the way to the top,”

You can teach most people a technical

Schembri comments. “You can walk

skill much more simply than you can

into our environments and see where

teach a cultural communication skill.

we’re at on what roadmap, ahead or

You do need to identify aptitude and

behind. Conversely, from the top down,

desire – there will be some people who

the senior leadership team meets

have no interest in learning about tech

once a month and works through the

and that’s OK – but we certainly look

process of what we’re doing on which

J U LY 2 0 1 9

155

projects, following up within three days

provement will always be ongoing), Fuji

with a shorter meeting with all the team

Xerox can be even more of a trusted

leaders to review those projects. One

advisor to its clients as they undergo

of the keys to being successful is that

their own journeys. “We’re focused on

we’re willing to fail fast and stop stuff

adding value to customers by making

that isn’t working. Management’s not

it simple, laying down clear pathways

the art of what you do: it’s the art of

of what we need to do. Compliance

what you decide not to do.”

is really important and the security of clients is sacrosanct,” he adds. “The

AN AGILE, LEAN ADVISOR

primary objective is to shorten the time

As a truly tech-led organisation with

to get clients up and running so they

its own IT function fully transformed

can serve their customers. You’re try-

(though Schembri is quick to note im-

ing to reduce overheads for them on a nz .busi ne ssc h ief. com

FUJI XEROX AUSTRALIA

the internal stuff. We also reduce hard costs through most of our transformations, which allows us to provide better value solutions to customers as well. We’re a business just like our clients, so we’re always challenged to find better ways of doing things.” For any business embarking on a technology transformation, Schembri emphasises the importance of laying solid foundations before chasing after the bright, shiny object. “What’s the difference between driving a Ford KA 156

and a Ferrari into a brick wall? You get the same result, but one just looks more spectacular when it hits it.” Schembri describes the ideal process as a hierarchy of needs: “The basis of it is learning, and it’s our job to make a learning environment. Then you define standards, which is followed by an emphasis on continuous improvement, and above that is transformation and innovation. Those two things are addictive for executives, but if you don’t do the foundation first it gets ugly.” Fuji Xerox will continue to support clients from these solid foundations as they undergo their own journeys. “As our business comes up with new offers, J U LY 2 0 1 9

1960

Year founded

45,397

Approximate number of employees

2011

Fuji Xerox Australia wins ‘FSC Responsible Procurement Award’

CLICK TO WATCH : ‘FUJI XEROX NEW ZEALAND: MEET TRUSTPOWER’S ROBOT WORKFORCE’

it’s about making sure our systems are robust enough to support those processes. While there are more technical challenges to deal with and there always will be, it’s not about technology: it’s about how to stay close to the business and understand what they need and how to fit in with that. We’ll continue to challenge ourselves to provide better value,” Schembri concludes.

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â&#x20AC;˘

158

Landcom leads the way on sustainability Written by

William Smith Produced by

Ryan Hall

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LANDCOM

Lauren Kajewski, Director of Sustainability & Learning at Landcom, discusses the companyâ&#x20AC;&#x2122;s sustainability pillars and the benefits the organisation and its communities have reaped

160

cross the world, organisations are waking up to the necessity of implementing comprehensive sustainability

strategies and the wide-ranging benefits that ensue. Landcom, a land and property development organisation of the government of New South Wales, Australia, can trace its sustainability journey to its first sustainability strategy developed in 2002. Its growing prominence as a sustainability leader is now underpinned by its Sustainable Places Strategy launched in 2017. Lauren Kajewski, Director of Sustainability & Learning, has been with the company for three years. In that time, Kajewski has been pivotal in driving Landcomâ&#x20AC;&#x2122;s sustainability efforts, implementing a strategy that emphasises transparency, clear targeting and community engagement, among other factors.

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CLICK TO WATCH : ‘2018 HEALTHY AND INCLUSIVE PLACES SURVEY RESULTS’

a nz .busi ne ssc h ief. com

LANDCOM

“ I’m proud of how our organisation was able to rally and move really swiftly” — Lauren Kajewski, Director of Sustainability & Learning, Landcom

ience. Healthy & Inclusive Places has the objective of delivering communities founded on equity, affordability and inclusion. The Productive Places pillar has the goal of enabling more than 30,000 jobs by 2036, while Accountable & Collaborative Places reflects Landcom’s commitment to governance and collaboration, both within its own organisation and across the wider supply chain. It is clear from its goals that Landcom has an inclusive definition of

162

sustainability, one that extends beyond its organisational practices to the communities in which it operates. All targets are detailed in admirable depth online in the company’s sustainability reports, with specific

Targets

markers of yearly progress. “Get

Landcom’s Sustainable Places Strat-

people on the journey with you so

egy is centred around four pillars,

that they can be involved and share

each with associated targets to

in the benefits,” says Kajewski. “We

measure performance. The first, Cli-

embrace that internally, and use our

mate Resilient Places, is based

IAP2 aligned Join-In Framework to

around delivering low carbon com-

engage our community members so

munities that balance ecological

they can be part of positive change.”

outcomes, reduce climate related stresses and build community resil-

J U LY 2 0 1 9

Landcom’s sustainability strategy is not founded in a vacuum; it is in-

CLICK TO WATCH : ‘WELCOME DINNER PROJECT AT THORNTON’ 163 formed by extensive research and

credible success,” says Kajewski.

consultation, interacting with the

“We haven’t yet realised that with

broader spectrum of sustainability.

the SDGs. They represent a call to

For instance, the strategy aligns

business, organisations and civil so-

with international frameworks in-

ciety to contribute in any way we

cluding the United Nations’ Paris

can. That’s why we founded our

Agreement, with a commitment to

Sustainable Places Strategy on the

carbon neutral communities by 2028,

SDGs and are reporting against

and the Sustainable Development

them. We aim to be transparent in

Goals (SDGs). Consequently, as well

what we think we are contributing

as reporting on its own goals, the

and how we can make an impact.”

company publishes its contribution

The willingness of Landcom to

to the SDGs, highlighting the specif-

lead by example sent it to fourth

ic ways in which the two overlap.

place worldwide in the 2018 Global

“The millennium goals were an in-

Real Estate Sustainability Bench-

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LANDCOM

164

mark (GRESB) Developer Assessment,

ever, our CFO talks about the business

up from seventh in 2017. Kajewski

value created by sustainability.”

sees healthy competition as a booster for the progress of sustainability,

Community

saying: “GRESB has been our first

Landcom’s Pillars and their targets are

foray into using sustainability com-

all intensely interrelated, as Kajewski

petitively, and it has really resounded

explains. “Our Climate Resilient

within the organisation. Staff are

Places pillar focuses on mitigating

looking at sustainability differently.

the impacts of climate change at all

That made it a real advantage for our

of our communities. This includes

team. Sustainability is often thought

collaborating with the people living

of as an extra over and a cost to an

there. When we implement resil-

organisation,” says Kajewski. “How-

ience and adaptation plans they are

J U LY 2 0 1 9

very people-focused, which con-

approach to sustainability. When

nects into Healthy & Inclusive Places.

she was hired, Kajewski brought

Here we have a strong focus on live-

her experience of sustainability in

ability. Interestingly, residents tell

the private sector to Landcom.

us the most important urban design

“Landcom has a strong legacy in

elements to them are access to

sustainability, but we weren’t think-

green open space and canopy cover,

ing of it as a competitive advantage

which loops us back to how we miti-

to our business, which is exactly

gate the effects of climate change,

how the private sector uses it,” says

such as reducing urban heat island

Kajewski. “The call for a refocus on

– part of Climate Resilient Places.”

sustainability originally came from

This sense of things building

our Board who wanted us to have

from, and feeding into, one another

‘a world class sustainability strategy’.

is evident throughout Landcom’s

It became my job to deliver that.”

E XE CU T I VE PRO FI LE

Lauren Kajewski Lauren Kajewski is a successful corporate sustainability professional, with the ability to lead complex environmental and social sustainability projects to effect positive change. Kajewski is the Director of Sustainability & Learning at Landcom — delivering sustainable and affordable communities for the people of NSW. In this role, Lauren is responsible for all facets of sustainability strategy, management, delivery and innovation for Landcom’s portfolio of projects. Kajewski has a Masters of Sustainability & Environmental Management at Harvard University, has recently achieved her Professional Graduate Certificate in Corporate Sustainability & Innovation from Harvard University. a nz .busi ne ssc h ief. com

165

LANDCOM

“ My mum needs to understand what we do and what we achieved in a year. If she can’t, I’ve got a problem” — Lauren Kajewski, Director of Sustainability & Learning, Landcom 166

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WE’RE NOT JUST SEEING THE BIG PICTURE. TOGETHER, WE’RE BUILDING IT TOO

Landcom’s pioneering vision hasn’t just unlocked lasting value from NSW’s assets. It’s creating resilient, liveable communities that are truly sustainable – socially, economically and environmentally – where the people of NSW can build their futures. And we’re proud to have helped Landcom turn that vision into a market-leading model that can benefit the State and its people for generations to come. Get in touch for more information

So too does the drive to extend Landcom’s commitments reach into

1976

Year founded

their work with other developers and construction companies. Kajewski details how Landcom has partnered with Clayton Utz, a leading Australian law firm, to develop a rigorous approach of filtering sustainability into their contracts and asset divestment. “Even when we divest an asset we still require a developer to achieve sustainability outcomes. Clayton Utz helped us to

AU$775mn Sales revenue (2018)

2028

Commitment to enabling carbon neutral projects

set very clear goals up front, and

is always a great experience due to

then use a range of mechanisms to

the combination of their vision and

ensure these ambitions are achieved.

their readiness to challenge busi-

They have helped us position this

ness-as-usual practices in order to

strategically within the market – again

return deeper value from their pro-

we use sustainability as a competi-

jects – a mindset which is reflected

tive advantage. There aren’t prolific

throughout the organisation, from

mandatory requirements, but clear-

the Board through to the project

ly articulated outcomes we want

teams. This commitment to innovat-

achieved. This flexibility is essential,

ing beyond the norm and building

and fosters market innovation.”

a new and better standard is some-

Eugene Tan, Special Counsel at

thing which Landcom and Clayton

Clayton Utz, further details the rela-

Utz share a passion for. Together –

tionship with Landcom and the work

with the clarity of Landcom’s vision

they do together to advance the

and without the constraints of prec-

cause of sustainability. “Working with

edent – we have created a new

[Lauren and] the team at Landcom

contracting framework in which the

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169

value of sustainability is an inherent

contributing towards, and drawing

commercial factor in all of Land-

from, the ever-growing body of sus-

com’s dealings; providing a more

tainability knowledge. “As a State

comprehensive basis for evaluating

Owned Corporation, part of our role

the overall value returned to the

is to lead by example. The sustain-

State, driving competition within the

ability world is small and those of us

private sector to deliver higher qual-

in it are highly collaborative. We’re

ity urban environments and creating

very happy to share knowledge and

places which are focussed on the

pull together to make a difference.”

people of NSW. We are proud to be part of Landcom’s ground-breaking sustainability journey and its transformation of NSW.” In the end, Kajewski sees the sustainability work of Landcom as

J U LY 2 0 1 9

Reporting “The lens I always end up using is that my mum needs to understand what we do and what we achieved in a year,” says Kajewski. “If she can’t,

CLICK TO WATCH : ‘SKILLS EXCHANGE 2018’ 171 I’ve got a problem.” Consequently,

we are doing – and in a digital age

Landcom has worked with Sydney

that means having an excellent

design agency Walterwakefield to

online presence,” says Kajewski.

move away from huge, dense yearly

“At our core, we communicate

reports. The goal is to make Land-

complex information, simply,” says

com’s sustainability performance

Jaimy Walter, Managing Partner and

results accessible, tangible and eas-

Creative Director at Walterwakefield.

ily digestible. “That’s what

We work with our clients to under-

Walterwakefield have helped us

stand their business strategy

achieve. Our website is now our

implicitly, then employ our visual

one source of truth, is highly interac-

arsenal to deliver these key messag-

tive and preferences infographics

es as effectively as possible. Be

and visual communications over

that through applying logic, clever

text heavy reports. Ultimately we

use of data, or enhancing the mes-

want people to engage with what

sage through the use of pictures,

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LANDCOM

“ Our CFO talks about the business value created by sustainability” — Lauren Kajewski, Director of Sustainability & Learning, Landcom infographics or video creation. Whatever most effectively communicates the concept and creates impact.” This transparent publica172

tion of data is cited by Kajewski as important in inspiring others to help contribute towards sustainability within the industry and civil society at large. Of course, it is undoubtedly the case that you can only report on what you know, and Landcom’s data collection efforts are crucial to gathering knowledge on progress towards its goals. “We have a very comprehensive sustainability platform that soaks up data, often in real time,” says Kajewski. “Then, that is synthesised into clear dashboards so we can get a nice clean picture of where things are at.”

J U LY 2 0 1 9

Landcom’s data collection efforts are continuously expanding along with the scope of their targets, and consequently Kajewski notes that care must be taken to avoid becoming swamped by irrelevant items. Through cleverly targeted collection, Landcom can give their communities the information that they care about, with Kajewski giving the example of results from their Healthy & Inclusive Places Survey, that measures satisfaction with quality of life – the results of which are then shared back to participants. What does the future hold for Landcom? In Australia’s current property market, Kajewski sees the opportunity to leverage Landcom’s strong sustainability focus. “We’ve recently launched sustainability home rebates in the market,” says Kajewski. “If a homeowner designs and delivers their home to a prescribed standard, which we have set to just shy of a carbon neutral home, then we’ll pay you back what you have invested, up to $15,000.” Such schemes allow the company to achieve sustainability outcomes in

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LANDCOM

174

“ The SDGs are a call to business, organisations and civil society to contribute in any way you can” — Lauren Kajewski, Director of Sustainability & Learning, Landcom

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circumstances it previously wouldn’t have been able to influence. Innovations such as these have helped to put Landcom back on the sustainability map, a development that Kajewski credits to efforts across the company. “We’ve managed to drive our current

CO MPAN Y FACT S

• Fourth place worldwide in the Global Real Estate Sustainability Benchmark Developer Assessment • Committing to being carbon neutral and water positive, with zero waste and net positive ecological outcomes by 2028 175

strategy fast. That’s been due to

become a serious consideration at

some really strong collaboration

every level. “I’m proud of how our

between project teams and my

organisation was able to rally and

team, and also having support from

move really swiftly,” says Kajewski.

our CEO, Executives and the Board.” “That feels like quite an Confidence in the role of sustainability, in both a business and social sense, has filtered through the company to

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SA POWER NETWORKS’ JOURNEY TO A DIGITAL UTILITY WRITTEN BY

JOHN O’HANLON PRODUCED BY

ANDY TURNER

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SA POWER NETWORKS

SA Power Networks provides energy to South Australia. Over five years, the transformation of its award-winning IT team, led by Chris Ford, has demonstrated the power of innovation

ith 1.75mn people dispersed over an area of nearly a million square kilometres, the job of distributing electricity to all South

Australia’s inhabitants is no small one. While the vast majority live in Adelaide, supplies need to reach 178

people in upcountry communities like Port Augusta, Nullarbor or Oodnadatta (which lies more than 1,000km from the capital). The job of supplying and maintaining the power infrastructure across this sprawling state, about the size of Germany and France combined, falls to SA Power Networks (SAPN), which employs more than 2,000 people, including an IT team of around 250. Before Chris Ford was appointed CIO, the IT organisation had yet to live up to its full potential or be recognised as a vital part of the wider business – a familiar story. CEO Rob Stobbe recognised that IT could no longer be seen as a backroom function if the company were to meet the strategic goals of the Future Operating Model it was developing. In 2014, he brought in someone with more than 25 years’ of senior leadership experience, both within J U LY 2 0 1 9

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SA POWER NETWORKS

“ A key pillar of our success as a leadership team has been our willingness to listen” — Chris Ford, General Manager Technology and Innovation, SA Power Networks

and beyond IT, in large regulated enterprises. Previously, the IT leadership had reported indirectly to the senior leadership but Ford was brought straight into the executive team to help drive forward and digitise the business strategy. Five years on, his role has been redefined and broadened to that of General Manager of Innovation and Technology. It’s refreshing to talk to Ford about his journey so far and his vision for the future. Not afraid of risk, experimentation or even vulnerability, his mind is as

180

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CLICK TO WATCH : ‘SA POWER NETWORKS – APPRENTICE RECRUITMENT’ 181 much on the people and their engage-

TECHNOLOGY SERVING BUSINESS GOALS

ment as on the nuts and bolts of IT.

Nevertheless, the technology did need

“Technology has changed, of course,

fixing, so the IT leadership team was

but I think the changes in management

radically restructured in 2014 and their

and leadership techniques and ways of

style of working changed. A compre-

working are just as important. Though

hensive review of the way the organisa-

I lead the technology function my real

tion handled its day-to-day processes

focus and strength is in people leader-

took the existing data storage and

ship, the development of capability and

enterprise functions onto the cloud. In

team building.” The evolution of a future

2016, it transitioned its legacy SAP ERP

business strategy, he believes, should

and BW platforms to SAP HANA, giving

go hand in hand with personal evolution

the workforce a database and reporting

and development: change is the engine

system relying on live data and making

of growth, and he has set ‘always evol-

regulatory compliance more depend-

ving’ as one of the IT team’s mantras.

able in a major migration exercise in a nz .busi ne ssc h ief. com

Microsoft: a trusted digital transformation partner Throughout SA Power Networks’ (SAPN) significant transformation of its IT team and its transition from legacy platforms, software giant Microsoft has been a key partner every step of the way. Rather than a typical vendor-buyer relationship, Microsoft has worked collaboratively to ensure SA Power Networks maximises the value of investment in its solutions. Collaboration empowered by Office 365 SAPN has adopted Office 365, utilising Teams to improve collaboration across the business with great success – the business helped SA Power implement its Future Operating Model in order to achieve operational excellence. SA employees have transformed the way they work through digital, utilised data to improve customer experience, gained smart insights into how the business can be run more efficiently, and improved communication and collaboration though open platforms. An important use case of Office365 has been promoting onsite safety. Teams is an easy to use, mobile friendly platform that improves communication between field workers to reduce the number of incidents. Questions can be asked in real-time, even through photos, to gain answers quickly. Other Office365 tools, SharePoint and Flow, have helped SAPN move from a paper-based to digital system, improving efficiency throughout the company’s procurement process. Without the need to scan paper documents, and with all information at the fingertips of staff, the business has reduced the procurement timeline from months to weeks. “We were early adopters of Office 365 and Microsoft have worked very collaboratively with us to ensure we maximise the value of the investment. We have really promoted the use of ‘Teams’ to improve col-

laboration across the organisation and it has been embraced by every group that has tried it.” – Chris Ford, General Manager Innovation and Technology, SA Power Networks More than a software vendor As a trusted partner, Microsoft brings software engineering, research and development, solutions architecture and support, which would not come from buying an off-the-shelf solution. As such, Microsoft has helped SAPN to innovate through its technologies, formulating the best ways to navigate a complex digital transformation as a true enabler. With SAPN having come on leaps and bounds implementing a modern workplace, Microsoft is also helping SAPN introduce SAP’s S4/HANA solution on Azure. This next-gen enterprise resource planning (ERP) solution is a truly mission critical application for SAPN. In addition, the partners are collaborating on a Virtual Power Plant project, which is funded by the South Australia government and aims to help South Australia ‘transition to a sustainable energy future’. Lastly, Microsoft has been instrumental in moving SAPN’s data to the cloud, with all the time and cost efficiency that goes with it. Moving to Microsoft’s cloud-based solutions has also improved collaboration with external partners through secure sharing. Explore how AI transforms industries and the society:

Learn More

partnership with DXC Oxygen.

operations, My Workday massively sim-

Previously teams going out to restore

plified payroll, while across the business

storm outages, for example, used paper

the roll-out of MS Office 365 provided

maps to locate sites but now they use

employees with tools such as SharePoint

the SAP Work Manager app running on

and Team sites to bring the organisa-

SAP Mobile to access all the informa-

tion together.

tion they need for the job. This alone is saving 2,400 working hours a year. Earlier this year, SAPN was proclaimed

Ford believes that one of the keys to success is forging strong partnerships with key suppliers. The relationship

Australia’s Digital Utility of the Year for

with Microsoft has been a great example

Energy. Its Digital Strategy, unveiled in

of this, culminating in a study tour to

2018, was a big part of that thanks to

Microsoft’s head office in Redmond

its record of cloud migration and the auto-

last year. Ford says: “we were early

mation of many manual processes. Just

adopters of Office 365 and Microsoft

as Work Manager streamlined field

have worked very collaboratively with

E XE CU T I VE PRO FI LE

Chris Ford Chris Ford is an internationally experienced Chief Information Officer with a proven track record of delivery in large private, government and regulated organisations. He is responsible for driving the digital transformation of SA Power Networks. Ford’s management responsibilities include all aspects of Information Technology, from supporting the day-to-day operations of the business through to delivery of the long-term business strategies enabled by the implementation of innovative, cost-effective and reliable information technology.

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SA POWER NETWORKS

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“ It is about giving people permission to take ownership of a problem, then go and fix it” — Chris Ford, General Manager Technology and Innovation, SA Power Networks

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#connectsmarter

Would you like to reduce costs and improve productivity at every level business-wide? At Modis, we apply our industry knowledge and technical expertise to the challenges you face in your organisation. Our expertise includes; • • • • • •

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Consulting services including asset management frameworks

In this world of complexity, where technology drives constant change, it’s more important than ever to work with the right people. At the right time. In the right ways.

That’s where we come in.

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us to ensure we maximise the value of the investment. We have really promoted the use of ‘Teams’ to improve collaboration across the organisation and it has been embraced by every group that has tried it.” Leadership strategy benefited too, with the Corporate Portfolio Management Office (CPMO) being given a MS Power BI dashboard that has enabled management to create and share reports and images and insource a lot of contract work. It increased the team’s ability to develop projects and cut the time and effort involved in producing reports.

187

That project helped the CPMO win the award of PMO of the year at the PMI Australia awards in 2018. The Digital

ogy to identify the images on CAD

Strategy, set to be fully in place by

drawings and then machine learning

2025, aims to create a seamless cust-

algorithms to correct and improve them

omer experience through automation

before transferring them to a digital

and equipping the workforce with

drawing. More than 6,000 Quicksilver

digital tools based on robust core

files were converted to intelligent

IT platforms.

AutoCAD drawing files using a machine

The most successful demonstration

learning algorithm while 60,000 files

of the new work culture arose from the

were transferred into Autodesk Vault,

challenge Ford gave to his young deve-

says Ford. “The MLA project was

lopers and engineers to convert thou-

a great success – it saved thousands of

sands of old CAD drawings from different

labour hours and improved the quality

sources onto one new platform. The

and accuracy of our drawings.” The

team used facial recognition technol-

project won two awards – the 2018 a nz .busi ne ssc h ief. com

SA POWER NETWORKS

Digital Utility Award for ‘Best Use of Technology’ and ICT Project of the Year at the 2018 SA Australian Institute of Project Management.

THE ART OF THE UNEXPECTED The literature of leadership has tended to concentrate on getting the most out of people in much the same way as you’d maintain a machine. Ford doesn’t tick that way, though he does encourage his leadership team to engage with writers like Brené Brown and Aaron Dignan who challenge received thinking. 188

He likes to embrace VUCA (volatility, complexity, uncertainty and ambiguity), seeing these seemingly negative or threatening concepts as occasions for growth. “I think the whole style of leadership is currently changing. These people are talking about vulnerability, even as a leader, and being open to your team so they see you as someone with integrity. A key pillar of our success as a leadership team has been our willingness to listen to and work with people across the organisation to improve the way we work.” One of the first changes Ford made was to join his team in an open office. IT people are by nature introspective, J U LY 2 0 1 9

he admits – they relish the solitary joy of coding. To encourage intermingling he created a large kitchen area and banned eating at one’s desk. Not only does the team have to eat together, but they are asked to sit with someone they don’t know. “We have created a real buzz in that kitchen as people step out of their comfort zone and share their experiences of both work and life.” No doubt the kitchen is an incubator of ideas brought before a monthly gettogether called Shark Tank where IT team members can have 15 minutes to present an idea, using no more than four slides. The idea is to share a story of success and challenges overcome, and get feedback from colleagues. Belying the title, it’s a supportive rather than a critical space, where anyone has the opportunity to gain confidence and show how a simple solution often produces a beneficial result. “It is about giving people permission to take ownership of a problem, then go and fix it,” says Ford. SAPN has many long-serving staff. For those who had been doing things the same way for many years it must have been a shock when they were asked to embrace Agile working – to challenge a nz .busi ne ssc h ief. com

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SA POWER NETWORKS

190

without inhibition, and to be challenged

especially for Agile projects. When we

in return. “We started on a journey of

started rolling out Agile, there was

training the IT function first about what

scepticism but then people started to

Agile meant and how it could add value

notice these stand-up meetings and

to the organisation. Slowly over time,

seeing they looked like fun. It’s a viral

we started to engage the wider organisa-

change. If you create pockets of

tion each time a business project needed

energy and enthusiasm people build

a sponsor. So we started to extend our

upon that energy and want to be part

Agile transformation into other parts

of this new revolution.”

of the business as we got better at it. We have a lot of stand-up meetings, J U LY 2 0 1 9

No wonder then that employee engagement scores went up from

“Our objective is to reduce organisational costs so that customer bills are kept as low as they can be” — Chris Ford, General Manager Technology and Innovation, SA Power Networks

191

below 70% in 2015 to 91% in 2017 –

ing to come into the office in the morning

helped by the abandonment of hierarchy

and feel their energy and enthusiasm.”

in favour of self-motivated teamwork. Much more important than the awards

WALKING THE WALK

Ford has received are the accolades

The IT building just across the road

he gets from long-service employees

from SAPN headquarters in Adelaide is

who tell him that the simple ability to

an environment Ford is proud of because

get problems solved make these the

it nurtures initiative within the group.

most exciting times they have known. “I

In a traditional organisation, change is

am so proud of the teams,” he enthuses.

often resisted. “I wanted to show the

“I love my work anyway but it’s very warm-

team what a different way of working a nz .busi ne ssc h ief. com

SA POWER NETWORKS

“ I am so proud of the teams. It’s very warming to come into the office in the morning and feel their energy and enthusiasm” — Chris Ford, General Manager Technology and Innovation, SA Power Networks

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might look like. I believe that together we’ve brought about a cultural transformation because people have found the confidence to try something different; to experiment and to not be afraid of failure and to be confident to challenge one another and be challenged in return.” The boss sharing an open office is not unheard of perhaps, but five years ago it was a breath of fresh air for SA Power Networks, as was the invitation to people to do their own thing. The staff introduced spontaneous lunchtime slots where team members can run a session on something of interest to them. For example, one person with an interest in meditation started a regular 20-minute meditation and mindfulness slot, while others might focus on aspects of professional development. “People are becoming teachers as well as students,” he says. Around the edge of the office there’s an open track to make it easy for people to move around, and meet and collaborate with others. The track inspired one of the team’s more engaging efforts – a collaboration to produce a robot that could navigate the walking track. “The Rise of the Robots was fun and at the same time brought out so many brilliant a nz .busi ne ssc h ief. com

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SA POWER NETWORKS

ideas. One outcome I hadn’t anticipated was how it brought into play the diversity of the team.” With some 40 different countries of origin represented, there’s no lack of different ways of approaching problems, he adds. All that is good fun – but it’s fun that benefits the business. Inclusion is at the heart of Ford’s approach. “In developing the digital strategy we took a codesign and co-create approach, getting people across the organisation to work with us and share their vision of the business’s future so we could work out 194

how digital technology could support them in achieving those goals. It is as much about business future as about technology. After all, our objective is to reduce organisational costs so that customer bills are kept as low as they can be.” With a positive approach to ethnic diversity, Ford is also passionate about giving equal opportunity to women, as well as girls who are considering a future career in the utility sector. Members of his leadership team speak in local schools about succeeding as a woman in the industry and encourage girls to take up STEM subjects. As well as mentoring women within the organisaJ U LY 2 0 1 9

1946

Year founded

2,000

Approximate number of employees

195

tion, he is himself ‘reverse-mentored’ by one of his young female field workers, a process which he describes as inspirational. All this has led to a transformation his entire team can be proud of, he concludes. “Being named Digital Utility of the year for Energy in 2019 is the culmination of five years of hard work: it really gives us feeling that we’re getting it right.”

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randstad: technology transformation with the human touch WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

KRISTOFER PALMER

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R A N D S TA D J A PA N

With its mantra of ‘combining technology with the human touch’, HR giant Randstad undergoes its digital transformation journey with a focus on change management

s the largest human resources (HR) firm in the world, Randstad operates 38 different markets. The business aims to

bring people and work together whilst “combining technology with the human touch,” reveals Richard Tanaka, Chief Technology Innovation Officer of the 198

company’s Japanese division. As CTIO, Tanaka defines his position as very unique: “Innovation is really the core part of my role. I find ways to bring innovation and technology into the company, and we’re specifically aiming to do that in Japan, which is why the position was established here. It’s not so much an operational role as it is more a strategic one. I do not work alone. I work and align together with the tech leaders from around the globe to leverage that we are One Randstad. There is huge collaboration at the APAC regional level, as well as at the global level.” Within Tech and Touch, the company established a global initiative called “Digital Factory” which is already touching all parts of the world. While each country is different, with the Digital Factory,

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R A N D S TA D J A PA N

“ Japan is really great at innovating and thinking of new technology, but to actually adopt it into a working environment or an office is a little bit of a challenge” — Richard Tanaka, CTIO of Randstad Japan 200

J U LY 2 0 1 9

CLICK TO WATCH : ‘HOW WILL HR TECH CHANGE RECRUITMENT?’ 201 Randstad is able to re-use and share

ment or an office is a little bit of a chall-

all kinds of technology. “We don’t

enge. So, it’s a bit of a paradox. An

believe in re-inventing the wheel for

important part of my role is to help

each country,” remarks Tanaka.

facilitate the adoption of technologies,

In Japan, a very technologically

processes and ways of thinking. Mindset

advanced nation, Randstad is noticing

change is quite a bit topic at the moment,”

a conservative and risk-adverse

Tanaka notes.

approach to change. As an American

Despite working within a technology

who has lived in Japan for the past 17

framed role, it is clear that Tanaka’s job

years, Tanaka is able to bring a more

is heavily change management focused.

western approach to the business in

“A big part of it is the people manage-

order to facilitate the required changes.

ment side, so I need to get my staff in

“Japan is really great at innovating and

the right mindset to be able to adopt

thinking of new technology, but to

different ways of working, accept newer

actually adopt it into a working environ-

technologies, or maybe even take a nz .busi ne ssc h ief. com

R A N D S TA D J A PA N

202

some risks. I need to get people on

and clients and bring operations together.

board,” he says. “In order for change

As HR is a people oriented industry, it

to happen we need to really focus on

has often remained traditional and main-

the people, and being able to give my

tained manual operations. For Randstad,

staff the Freedom within the Frame is

introducing technology to the front line

as exciting as much as it is not well

of its business strategy will bring it one

understood.”

step closer to meeting its mantra of

In 2016 the company revealed its Tech

‘combining technology with the human

and Touch strategy, which seeks to

touch’. Tanaka discloses: “We want to

address how the business can combine

make technology an integral part of the

technology to better serve its candidates

way the business works, and an integral

J U LY 2 0 1 9

part of the way we interact with potential

a speed that was never seen before,”

candidates or with our clients. Tech-

remarks Tanaka. OutSystems’ offering

nology is all around us, so if you receive

enables Randstad to develop a system

a resume on a piece of paper then you

in a fraction of the time that it would

can’t very easily share it with a fellow

have previously taken – reducing years

co-worker or with a potential client or

to months to weeks. “The platform is

employer, so we’re striving for ways to

very modular and scalable. We have it

leverage technology and innovation,

set up in nearly a dozen countries, and

such as mobile platforms, artificial

so we can share, for example, a design,

intelligence (AI) and machine learning.”

corporate colours or branding, a layout,

Randstad Japan is currently

or even an app between the other

adopting low-coding platforms with

markets. It’s all pre-packaged for us,

OutSystems. “We embrace their

ready to go. Having to do everything

platform and it gives us the ability to

from scratch is a thing of the past – we

develop ideas, tools and systems in

have a very high reusability factor with

a very quick and efficient manner, at

what we’re doing,” he continues.

E XE CU T I VE PRO FI LE

Richard Tanaka Richard Tanaka is the Chief Technology Innovation Officer at Randstad Japan. Tanaka is Japanese-American born in Los Angeles, US, and has a long working history in the IT industry. Having served as a Director in IT for the Asia Pacific region at 20th Century Fox, as well as working Theatrical Systems at Warner Bros. Entertainment’s APAC region and a Global IT Business Partner for Japan and APAC at Adecco, Tanaka’s career has span across the telecom, entertainment, and HR services sectors

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R A N D S TA D J A PA N

204

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â&#x20AC;&#x153; Randstad Japan is taking its steps forward and embracing organisational change, embracing mindset change, and of course along with that comes system changesâ&#x20AC;? â&#x20AC;&#x201D; Richard Tanaka, CTIO of Randstad Japan

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205

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Schedule a Demo www.outsystems.com/webinars/platform-demo-apac

207

According to the CTIO, Randstad

wasted,” says Tanaka. Through its

Japan is reaping the benefits of new

partnership with DOMO, the firm has

flexible systems that feature greater

gained access to a data visualisation

access to data. The firm is able to be

tool that has enabled data-driven

more data driven whilst taking advan-

decision making within the operations.

tage of the rapid adoption of mobile

By having more data-driven opera-

technology. The company is designing

tions, the company can also reduce

applications for mobile and tablets to

the amount of paper it uses and improve

be used by employees out in the field.

agility. “Compared to our previous

“The apps will hold client data, offering

functions, we had a lot of paperwork,

the latest information and orders. All

and with the importance of personal

that good, valuable information will be

privacy at an all-time high, most

available right at our employees’ finger-

paperwork will have to be shredded,”

tips, so no opportunity would be

Tanaka explains. “DOMO is allowing a nz .busi ne ssc h ief. com

R A N D S TA D J A PA N

208

us to be more agile with where and

â&#x20AC;&#x153;At least half of any transformation is

how we work, and this is having

being able to take the first step. Rand-

a profound effect on improving our

stad Japan is taking its steps forward

business as well as giving our clients

and embracing organisational change

a better experience.â&#x20AC;?

and mindset changes, and of course

As the HR giant continues on its

along with that come system changes.

digital transformation journey, Tanaka

I think the transformation really starts

highlights that technology is not the

with the right people and the right

only important aspect of the evolution.

leadership with a common vision,â&#x20AC;?

J U LY 2 0 1 9

“ OutSystems’ platform gives us the ability to develop ideas, tools and systems in a very quick and efficient manner, at a speed that was never seen before” — Richard Tanaka, CTIO of Randstad Japan

209

Tanaka comments. “I can really say that change management in Japan is not the easiest thing to do, but I think a little bit of creativity can help. Sometimes you have to do things a little outside of the box. Being able to tell a story, or being able to share the vision goes a long way, especially here in Japan.” a nz .busi ne ssc h ief. com

210

Digital transformation across the Asian landscape

WRITTEN BY

OLIVIA MINNOCK PRODUCED BY

ALEX PAGE

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SUN LIFE FINANCIAL

Insurance giant Sun Life sees the Asian market as an important region to grow, innovate and experiment. Gavin Gollogley and John Trotter outline how the company uses digital tools, culture and partnerships to thrive in a rapidly changing landscape

W 212

hile insurance giant Sun Life is headquartered in Canada – the company’s commitment to digital transformation and

innovation surpasses borders, and the exciting market of Asia is becoming an important region for developing new ways of working. Sun Life, which is present in seven markets across Asia – Hong Kong, Vietnam, Indonesia and the Philippines, with joint ventures in China, Malaysia and India – sees Asia as a tech-savvy market with huge opportunities for growth, not just geographically, but also in terms of the innovation and services it offers. “Asia is an important growth engine for many global businesses now,” comments John Trotter, Head of E-Distribution and Fintech at Sun Life Asia. Asia has several elements that come together to create a wealth of opportunity for a global insurer like Sun Life: a large and growing population, an emerging middle class, low insurance penetration across most countries, and a young demographic J U LY 2 0 1 9

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SUN LIFE FINANCIAL

“ It’s important to understand how data, coupled with intelligent analytics, supports business needs” — Gavin Gollogley, Head of Digital, Sun Life Financial Asia

which is digitally savvy and used to leapfrogging technologies to take advantage of the very latest advancements. The company is highly enthusiastic about the region, and encourages the Asian businesses to drive their own developments for the local markets. “This is a really sensible approach,” comments Trotter. “Of course we share learnings across all our markets, but a one-size-fits-all model across countries rarely works – there are always local considerations that may mean something that works well

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in one country will not necessarily work in another: regulation, market maturity, culture etc.” As the company embarks on an ambitious journey to digitise its overall operations, Head of Digital for Asia, Gavin Gollogley, adds that Asia is the perfect place to experiment. “From an innovation perspective, there is a sense that people typically look toward the US, but there is equally as much going on this side of the world, particularly in China and India.” Gollogley adds that Sun Life’s ‘client obsessed’ CEO, Dean Connor, has put a lot of focus on digital and data to drive Sun Life’s cliJ U LY 2 0 1 9

CLICK TO WATCH : ‘SUN LIFE AND ME. PARTNERS FOR LIFE’ 215

ent strategy, actively encouraging our

building new business models, en-

transformation agenda, and new ways

hancing operational and value chain ef-

of operating in some of the world’s

ficiency, and creating best in class ex-

fastest growing markets.

periences, to building a digital culture and mindset – all enabled by the latest

FOCUSING ON DIGITAL

technologies, data-driven insights,

Gollogley highlights that digital trans-

skillsets, talent and change frame-

formation is not simply a matter of

works. When you look at it through

technology advancement and applica-

these lenses, it is a pretty large beast.

tion. “There’s a definite need to clearly

As we are a traditional life insurer, with

articulate what digital is, and how it

over 150 years of doing business, this

enables business strategy. It touches

requires taking transformation in bite

on many elements, some more trans-

size pieces.”

formational in nature than others. From

Sun Life Asia’s digitisation kicked a nz .busi ne ssc h ief. com

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off in earnest in early 2016. “We have

cluding building an integrated customer

made good progress across the region

engagement platform, developing

in advancing our Digital and Data

a point of sales and productivity suite

& Analytics agenda,” says Gollogley.

platform for advisors, improving our

“The core focus has been on digitising

digital marketing and social media

our current processes, creating a data

capability and creating a data analytics

& analytics centre of excellence and

center of excellence.”

embedding a digital friendly culture, with investment in upskilling our people

en their digital foundations to push

with key digital skills.

for differentiation. “There is a definite

The initial focus was on a three year

216

In 2019, Sun Life will further strength-

awareness that we need to be vigilant

road map, its objectives having largely

on areas like talent, structure and culture

been achieved in developing a ‘com-

to achieve our goals,” Gollogley adds.

mon core’ across all business units; in-

E XECU T I VE PRO FI LE

Gavin Gollogley Gavin Gollogley is Head of Digital, Asia at Sun Life. He supports the organization’s digital transformation efforts, specializing in the digital portfolios which include marketing, experience and distribution, as well as overseeing their data & analytics centre of excellence. Gavin has over 25 years’ experience in digital roles spanning media, publishing and the insurance industry in Hong Kong, Australia and Ireland. He brings to his role a deep understanding of how digital transformation can create opportunities and be leveraged to solve inherent business problems. Currently based in Hong Kong, Gavin enjoys spending quality time with his wife and three daughters when not working.

J U LY 2 0 1 9

GROWTH THROUGH PARTNERSHIPS

customers who may not have access

As part of the company’s digital

to Sun Life’s traditional channels,

transformation journey, Asia has also

the business is experimenting with

proved the perfect place to explore

new forms of distribution through

new digital distribution channels by

strategic partnerships. Currently,

collaborating with partners to en-

insurance penetration is around 3%

hance the experience for Sun Life’s

on average across all Sun Life’s

clients – for example, the business

Asian markets, so as Gollogley puts

has recently invested in startup Bow-

it: “There’s a huge opportunity,

tie, which will be Hong Kong’s first

a veritable ‘blue ocean’ out there

purely digital insurer. “Sun Life has

to navigate and explore.”

a proud history as a partnership

Telecommunication companies such

business,” says Trotter, explaining

as Malaysia’s U-Mobile have become

that in order to reach new groups of

an interesting component of Sun Life’s

E XE CU T I VE PRO FI LE

John Trotter John Trotter is Head of E-Distribution and Fintech at Sun Life. Within this role he is responsible for t wo t ypes of digital partnerships: developing strategic partnerships for new digital distribution, and working with startups and Fintech companies on innovative new initiatives. Trotter has over 30 years’ experience working in the banking and insurance industr y across Asia and the UK, largely in business development roles.

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SUN LIFE FINANCIAL

growth plans. “We’re experimenting to see if we can sell insurance through non-traditional partnerships and ecosystems,” says Trotter, demonstrating Sun Life’s focus on pushing boundaries and extending its customer reach beyond traditional means. Additional telco partners already include Indonesia’s Telkomsel and Philippine’s Smart – both sector leaders in their respective countries with tens of millions of customers each. Sun Life has also recently formed another interest218

ing partnership with one of Southeast Asia’s major e-commerce platforms, Lazada, which itself has over 50mn customers in the region. “It’s a really interesting new model for us,” says Trotter. “We’ve simplified insurance to the extent that we can almost put the products on a supermarket (eCommerce) ‘shelf’ and observe how consumers respond. At this stage it’s still an experiment, but a good example of how we’re thinking – we need to push the boundaries to reach new types of customer.” Another element of the clientobsessed firm’s digital transformation journey is to offer products and soluJ U LY 2 0 1 9

“ The focus is on client experience: trying to understand needs and behaviour” — Gavin Gollogley, Head of Digital, Sun Life Financial Asia tions for those who may not be catered for by traditional insurance offerings. “We’re interested in helping increase the 3% penetration rate and appealing to new customers,” says Trotter. “We’re also very conscious about customer groups who may not have the same level of affluence or consistent income to afford our traditional products. We are redesigning our products in several markets to offer credibly priced on-demand value options. There are groups of consumers in Asia that don’t want to buy a 10-year insurance policy the first time they buy – they want to a nz .busi ne ssc h ief. com

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SUN LIFE FINANCIAL

“ Asia is a massive growth engine for most global businesses now” — John Trotter, Head of E-distribution and Fintech, Sun Life Financial Asia

220

dip their toe in and try something more

to such a vast landscape of consum-

affordable and short term. We’re trying

ers would prove costly, this is one area

to deliver that for them.”

where e-commerce and telco partnerships have been vital. “People are inter-

CONNECTING WITH THE CUSTOMER

acting anyway, so that gives us a good

In addition to getting the product right,

opportunity to put products in front of

it’s important to explore different

people and test what works, what price

avenues of bringing these products to

point and coverage are right for them.”

the customer. “We’re trying to reach

Across its business lines, Sun Life

that niche of customers who can afford

has been quick to recognise and

what we’re selling, value what we’re

leverage the benefits of social media

selling, and who want to get into the

marketing across Asia, having

protection market at a price point they

garnered over 2.5mn followers on

can afford.” Whilst advertising directly

platforms such as Facebook, LinkedIn,

J U LY 2 0 1 9

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Instagram and Twitter. In doing so,

it is how we will be perceived by

the company makes up for its rela-

prospect and client alike.”

tively smaller footprint in some markets

Though Facebook isn’t advertised

with an amplified voice online. “Sun

as a customer service function, Asia’s

Life uses social media to reach out to

well-known thirst for omnichannel and

people who don’t know the brand or

choice is reflected in the way many

understand the insurance need,” says

users engage with Sun Life via the plat-

Gollogley. “We’re using it for educa-

form. “Our clients are saying that’s the

tion and a lot of creative engagement

way they want to engage so we have

supporting brand awareness and

to cater for this,” says Gollogley. “It’s

sponsorship. Social media and digital

the same with chatbot technology. We

marketing in general is a way in which

have a chatbot sitting in our Philippines

we can present who we are, and what

Facebook page – but we also under-

our purpose is – and in equal measure,

stand that’s not a channel of choice a nz .busi ne ssc h ief. com

SUN LIFE FINANCIAL

for everybody. Some people want to call us, some want to speak to their advisor, some want to go through email or through Facebook. We have to build connected experiences that match our customer needs, behaviours and intent.” Social media is instrumental for an organisation like Sun Life as it aims to engage with customers at different stages of the client journey in order to

“ We have to build connected experiences that match our customer needs, behaviours and intent” — Gavin Gollogley, Head of Digital, Sun Life Financial Asia

provide ongoing support from initial awareness to sustainable retention. 222

Sun Life also uses celebrities, KOL and supports its advisors through social

LEVERAGING DATA IN CLIENT OBSESSION

selling workshops. Here, content and

Along the path to purchase, awareness

context are king. Gollogley poses a

of the right products and services

key element of content marketing as

available to prospects and clients, and

a question: “How do we reach users

the experiences they receive, can be

who are unaware their needs may be

enhanced using the most vital resource

met by a financial product, regardless

available to businesses today – data.

of the brand?” With creativity, trans-

Organisations worldwide are leverag-

parency and education highlighted as

ing as much information as they can to

key, Sun Life has created ‘life moment’

provide a more personalised, predic-

frameworks which target human expe-

tive and proactive service and Sun Life

riences – ‘Getting Married’, ‘Building

is no exception. Indeed, its centre for

a Family’ or ‘Enjoying Retirement’ –

data & analytics aims to accelerate the

in order to show prospective clients

capabilities and development of best

how its products may help them at vital

practice around data and analytic solu-

stages in their lives.

tions. The team works with Sun Life’s

J U LY 2 0 1 9

A TRANSFORMATIONAL MINDSET Like any organisation embarking on a significant digital transformation journey, Sun Life is experiencing a large culture shift, and has had to keep a close eye on managing this change as employees adapt to a new mindset. Gollogley argues that this isn’t just about forming a digital mindset, but is also about transitioning into a transformational mindset. “People who are willing to change, learn and be comfortable with uncertainty — those are the individuals we’re trying to bring into the organisation. But we have to be conscious that this is a journey and we’re dealing with people who have been in the profession for many, many years. The organisation has put tremendous focus into creating digital leaders, with a focus on upskilling the practitioners leading the change, as well as key enablers across the region. This includes training and certification on design thinking, agile, digital leadership, digital marketing and change management. To reinforce this change, we’re dependent on our senior leaders

being very vocal and communicating that change is good for the client, the organisation and the employee. We require our leaders to create a movement, being our number one change agents, to foster and accelerate a digital mindset within the organisation — encouraging agile digital leadership, change and transformation. If the execution is correct, this will be extremely beneficial to our transformation journey.” 223

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224

1865

Year founded

Â£1.1trn+ Assets under management

10,000+

Approximate number of employees

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225

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SUN LIFE FINANCIAL

SUN LIFE ASIA SERVICE CENTRE HYPER-JUMPS ITS CULTURAL AND DIGITAL TRANSFORMATION

226

In 2006, Sun Life formed the Asia Service Centre to build the foundations for its digital transformation, long before ‘digital transformation’ became a buzzword. More than a decade later, Sun Life’s Asia Service Centre is a fastgrowing innovation hub providing business processing, IT and investment research benefitting Sun Life’s global operations with offices in the Philippines and India and a combined headcount of almost 3,000. The Asia Service Centre’s core digital competencies are mobile, data analytics, visualisation and RPA. In the past three years, Sun Life has launched over 20 digital assets, including the Sun Life Mobile Application launched in 2016, a first of its kind in the Philippines and supported the company’s e-commerce partnership with Lazada, another first in the industry. Agility played a big role in this project as the team achieved 80% re-use of components to lower cost and launch in two months’ time, ahead of the six-month timeline. When it comes to emerging capabilities, Sun Life is currently focusing on cloud, data science and AI. In 2018, J U LY 2 0 1 9

RPA was implemented through the Intelligent Process Automation (IPA) program which involved automating 50 business processes within Sun Life through the use of over 100 bots. Automation reduced the rate of errors and provided a lower level of operational risk. It greatly improved customer experience, moving highvalue front line employees to performing more important tasks. After it was launched in Asia, ROI was achieved in less than a year. In the same year, the Asia Service Centre’s Intelligent Automation Program evolved into the Intelligent Automation Centre of Excellence pushing for more technology innovation. Both initiatives are driving Sun Life towards automation of business processes to provide faster and more efficient services to Sun Life’s businesses around the world. “We won’t stop. Our digital transformation will continue to streamline our processes, reduce risks and achieve ultimate efficiency, thereby assuring improved customer satisfaction,” concludes Gollogley.

the organisation’s data and analytics maturity and business priority. These use cases can be offensive in nature, focusing on growing our business (for example, client engagement), or defensive, focusing on increasing efficiency to lower costs.” The client experience is also digitised every step of the way in order to build and develop sustainable relationships. “Persistency is one example of how the application of insights from data can bring a lot of value,” explains Gollogley. “How do we deepen that relationship various business units to leverage

with the client so they don’t lapse their

machine learning and infrastructure

policy after a short period? After buy-

development, and also draw conclu-

ing the policy, they’re still with us – not

sions on how data and analytics can

for six months, or six years, but for

be applied across client, distribution,

a whole lifetime of value, for them and

operations and digital partnership.

their beneficiaries.” This year, the

“It’s important to understand how

company is focusing on two particular

data, coupled with intelligent analyt-

areas: what Gollogley refers to as the

ics, supports business needs,” com-

first and last mile. “The first mile is the

ments Gollogley. “Recently, we’ve been

data piece: understanding what data

leveraging data strategy workshops

we have and being able to access that

to develop a target state of how we

in the most digestible format” explains

maximise value from data assets – the

Gollogley. “In addition, from an external

outcome gives us the ability to develop

perspective, what data can we get our

a high-level data roadmap with new

hands on and what will bring true client

insights and use cases that reflect

outcomes?” The ‘last mile’ involves a nz .busi ne ssc h ief. com

227

SUN LIFE FINANCIAL

the business executing on insights. “There’s little point spending 80% of the time on modelling and analysis, and only 20% on the execution of the insights generated. What are those insights that have tangible business value? When our data scientists bring those insights back into the business, are they different than anticipated? If so, are we willing to execute on the results, and do we have the ability to do this at speed? This can be our formula for success.” 228

Data, just like all the other resources leveraged by Sun Life, always comes back to an obsession with clients – clients

“ There’s a definite ence: trying to understand the needs need to clearly and behaviours,” Gollogley emphasises. articulate what “We know expectations are not set by digital is, and insurance companies and banks, but by those companies with the large market how it enables caps – the Amazons, the Facebooks, business strategy” the Googles. Our strategy is to deliver whose expectations are increasing

every day. “The focus is on client experi-

experiences that are proactive, predictive and personal. An example of this would be offering clients a ‘next best offer’ – matched to their current needs, life segment or mirroring what people ‘like J U LY 2 0 1 9

— Gavin Gollogley, Head of Digital, Sun Life Financial Asia

Studio in Toronto as well as regionally with the creation of an Innovation Hub in Asia and active participation in the fintech community. Trotter stresses these burgeoning, disruptive startups shouldn’t be seen as a threat, but as an opportunity to collaborate and innovate. “We’re very comfortable looking outside the business for solutions that we can’t build ourselves. That’s something we’ll do in terms of core technology as well as emerging technology. Collaboration is really where the industry is going and businesses that do well with this will have a much better chance than those that don’t.” them’ purchase. This is only possible

Run by Accenture, the Fintech

through advanced analytics and target-

Innovation Lab Asia Pacific runs annual

ed marketing. That’s the lens through

12-week mentorship programs for

which we try to match customer expec-

startups. Launched in 2014, companies

tation, while supporting and fueling our

which have utilised the lab have raised

advisor and partner ambitions.”

a total of US$288mn to date. Sun Life is one of the principal partners of the

INNOVATION IN AN OPEN LANDSCAPE

lab, alongside other global organisa-

As the financial landscape changes

tions such as HSBC and Goldman

and develops, becoming ever more

Sachs. Ignite, meanwhile, is Sun Life’s

competitive with the advent of fintechs

own centre for innovation which

and insurtechs, Sun Life is focusing

opened in 2017 to act as a ‘living lab’,

heavily on upskilling and innovation

advancing innovation and collaboration

– on a global scale through its Ignite

between employees. a nz .busi ne ssc h ief. com

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Trotter also stresses that partnerships are often the best way to go to introduce innovation. “The idea that a startup could be a serious industry competitor is obviously unlikely – they understand that they need to partner with the incumbent in the industry, and likewise we as the incumbent understand these insurtechs have ideas that can accelerate our transformation. Whether that’s claims process, RPA, AI, facial recognition – they have specific talents and techniques we can 230

leverage and vice-versa.”

A CONTINUOUS JOURNEY As finance and insurance continues to evolve, particularly in the exciting and

of talent: “Transformation itself will

fast-paced Asian markets, Sun Life is

never cease, and will continue to rely

reaching out to new clients continu-

heavily on people. Building a team,

ously, and adapting new experiences

bringing in the right talent and capabil-

for its existing client base. “We’re only

ity is challenging, but it’s a challenge

three years into our digital journey. It’s

that the Sun Life team, and those at

a story that’s going to continue, with

the forefront of the journey across

perhaps a narrative that is challenging

the region are managing well. I read

but exciting,” says Gollogley. “I expect

somewhere that digital transformation

the word ‘digital’ may be out of fashion

challenges the very concept of career

in a few years’ time, as it becomes the

paths and traditional job profiles, with

standard way of doing business.” Gol-

the agility and innovative capacity of

logley goes back to the importance

organisations resting on the diversity

J U LY 2 0 1 9

231

of experience of those who comprise

culture. Our transformation efforts to

it. I believe this sums up pretty well the

date have been a real joint effort, led by

challenges before us on talent hiring,

our business units, supported by our

retention and increasing capabilities,

regional and shared service teams.

in today’s environment. “At Sun Life, we’ve been fortunate to

“We know Digital is no longer an alternative: it must be viewed as core

hire some brilliant individuals across

and the new way of doing or providing

the region. We constantly learn from

ease of business. Sun Life is well

each other, and there is a real sense of

positioned to embrace and succeed

purpose, co-creation and collaboration

in this disruptive and changing world.”

for our mission. As a whole, Sun Life is a great place to work, a friendly and encouraging environment, with a great a nz .busi ne ssc h ief. com

LINFOX INTERNATIONAL GROUP 232

DRIVING DIGITAL TRANSFORMATION THROUGH COMMUNICATION AND TRUST

WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

KRIS PALMER

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L I N F O X I N T E R N AT I O N A L G R O U P

Supply chain services provider Linfox International Group is undergoing a digital transformation to optimise its internal processes and offerings. Edwin van Poelje, Regional IT Manager at Linfox, discusses the process and its successes thus far

ince its establishment in 1956 by Lindsay Fox, Linfox has become the leading provider of logistics and supply chain

services to the Asia Pacific region’s largest 234

companies. To maintain its advantage over the competition, Linfox has embraced disruptive technologies as a means to increase efficiency, reduce costs, boost transparency and trust, and drive customer satisfaction. “Digital transformation is not a threat, but an opportunity,” says Linfox’s Regional IT Manager, Edwin van Poelje, who is currently based in Bangkok. “Through digital transformation, we aim to understand company and customer processes more effectively, as well as capturing our digitised output on a central platform in combination with blockchain. Leveraging this data enables the company to report horizontally rather than by application or department, making the impacts of actions and decisions more visible.” He stresses that the journey is only as effective as the communication running through it. To that J U LY 2 0 1 9

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L I N F O X I N T E R N AT I O N A L G R O U P

“ Implementing software is a relatively simple process, however the change management process is key to making any implementation a success” — Edwin van Poelje, Regional IT Manager, Linfox International

236

effect, Linfox has adopted an organisa-

behind the implementation are vital.”

tional approach to digitalisation that

According to Van Poelje, Linfox has es-

places cooperation and human interac-

tablished change management as one

tion at the forefront of its journey.

of its key factors for aligning its digital

“Implementing software is relatively

solutions with its business needs,

simple. However, the change manage-

whilst ensuring that fears of replace-

ment process is key to making any

ment through automation are handled

implementation a success,” says Van

with care and sensitivity. Replacing

Poelje, discussing the firm’s impact

staff with digital solutions, he adds, is

mitigation of the culture shift inherent

not an aim of their implementation.

in digital transformation. “The involve-

Instead, automation enables work-

ment of relevant users, training those

ers to contribute to the business in

users, and assuring and reassuring of

other ways. “We use machine learning

the functionality, benefits and rationale

to automate and improve our report-

J U LY 2 0 1 9

237

E XE CU T I VE PRO FI LE

Edwin van Poelje Edwin van Poelje is an experienced IT executive, leader and strategist responsible for supply chain solutions, IT and innovations at Linfox across the Asia Pacific region. With over 20 years’ experience across multiple roles — including in management of IT strategy, migrations, upgrades, hardware and software implementations, relocations and restructuring projects — van Poelje has a seasoned and unique ability to manage multi-disciplinary IT environments, projects and challenges. Prior to working at Linfox, van Poelje accrued experience and success in roles with Shell, Ernst & Young, Capgemini and TNT Logistics.

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L I N F O X I N T E R N AT I O N A L G R O U P

“ We are standardising and centralising functionality on Azure wherever possible” — Edwin van Poelje, Regional IT Manager, Linfox International

238

ing process on the Microsoft Azure platform. This is not meant to reduce our headcount; instead, it allows the team to focus on and action reporting outcomes, as well as supporting more elements of the business.” Alongside the possibilities for automation afforded by machine learning, Linfox has also begun to adopt artificial intelligence (AI) to assist with maintaining safety standards. “Our trucks have facial recognition software powered by AI that is capable of determining when a driver looks tired or is not complyJ U LY 2 0 1 9

ing with safety standards, prompting an alert to address the issue.” Another key aim of the digital transformation is in minimising the firm’s regional hardware footprint, which is where the aforementioned Microsoft Azure platform comes into play. “Cloud technology is a key pillar in our digital strategy,” notes Van Poelje. Cloud technology not only enables Linfox to accelerate the time-to-market of its solutions and services, but also considerably boosts ease of access, scalability, budgeting and billing capabilities. “Reduction of hardware on-premise reduces the associated risks of hardware failure, performance and capacity constraints and backup,” says Van Poelje, adding that the strength of Linfox’s cybersecurity is facilitated by ensuring that the company’s cloud providers adhere to its strict cloud security standards for the benefit of users and customers. This alignment between Linfox and its suppliers is inherent across each of its vendor partnerships, with Van Poelje highlighting trust as the key factor in getting the best deal and service. “With our vendors we look for a long-term, a nz .busi ne ssc h ief. com

239

L I N F O X I N T E R N AT I O N A L G R O U P

25,000

Approximate number of employees

1956

Year founded

240

J U LY 2 0 1 9

CLICK TO WATCH : ‘LIG CORPORATE VIDEO’ 241 trustful and worthy relationship,” he

we offer internally and externally.” This

says. “As a family-owned company, our

functionality extends beyond cloud

values are Loyalty, Integrity, Fairness

functionality and cybersecurity to data

and Trust. We seek to match these

analysis, reporting and dashboarding.

values with our vendors to ensure they

“All of our systems either run on Azure

are the best placed to assist us with

or channel data into our Azure data

achieving our digitalisation goals.”

lake. From there, we can run reports

“Microsoft is a key player for us,” con-

and dashboarding, and allow access

tinues Van Poelje. “We are standardis-

to users and customers at the point

ing and centralising functionality on

of need.” Linfox’s efforts to harness

Azure wherever possible. For example,

data through digitalisation does not

we have standardised our transport

end there, however. Digitalisation has

management system and warehouse

enabled Linfox to reduce its paper us-

management system, providing the

age, optimise processes and access

standard for all services and solutions

to digital information, simultaneously a nz .busi ne ssc h ief. com

L I N F O X I N T E R N AT I O N A L G R O U P

“ As a family–owned company, our values are Loyalty, Integrity, Fairness and Trust” — Edwin van Poelje, Regional IT Manager, Linfox International

242

generating usable data and identify-

also ties Linfox’s ethos of open and

ing that which should be added to

collaborative communication together,

its blockchain network. “The benefit

providing a single source of truth for

of blockchain is the transparency of

users across the organisation that

information for customers regarding

can be relied upon to deliver the right

security, key performance indicators

information at the point of need.

and finance,” explains Van Poelje. “The

The successes and benefits of

immutable principle of blockchain

Linfox’s digital transformation are

makes this trustworthy and secure.

plentiful. Assessing the key benefits

In combination with smart contracts,

of the journey for employees, van

this will enable easy customer com-

Poelje highlights ease of access as

pliance and fulfilment.” Blockchain

being a decisive factor in the suc-

J U LY 2 0 1 9

ency,” adds Van Poelje. “Our business intelligence environment gives a near real-time display for operations, departments and customers, which was not possible in the past.” Van Poelje also highlights the digitisation of the company’s safety process, particularly the frictionless manner in which it was enacted. “Instead of using paper, everyone is using online forms to report and communicate on safety aspects. “In addition, I am proud of the Azure environment we have established. It has been setup in a flexible way to accommodate for future demand.” This future-proofing is the crux of Linfox’s powerful position as a leading digitised supply chain solutions cess found through the application

provider. Van Poelje says that the next

of new technologies. The time freed

stage is to develop Linfox’s supply

up by leveraging solutions that enable

chain operations further, becoming a

employees to access data quickly, eas-

modular, dynamic and flexible ser-

ily and reliably is combined with the

vice provider that is able to connect

reduced labour afforded by automation

with and fulfil the needs of any cus-

of repetitive processes. This ability to

tomer. With the laudable successes

apply time and skill more construc-

achieved so far, this goal seems not

tively not only boosts operational ef-

only achievable, but inevitable.

ficiency, but also job satisfaction. “For the organisation specifically, the key benefit is the visibility and transpara nz .busi ne ssc h ief. com

243

PIZZA HUT 244

TECHNOLOGY TRANSFORMATION TO IMPROVE THE CUSTOMER EXPERIENCE WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

KRISTOFER PALMER

J U LY 2 0 1 9

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PIZZA HUT

PIZZA HUT IS UNDERGOING A DIGITAL TRANSFORMATION JOURNEY TO BETTER UNDERSTAND CUSTOMER RETENTION AND ENGAGEMENT. CHIEF CUSTOMER OFFICER FOR APAC, TROY BARNES, TELLS US MORE

246

izza Hut wants to create a world with more ‘yum’. As part of the Yum! Brands corporation, a Fortune 500 company based in

Kentucky, the company prioritises its customers’ experience. Troy Barnes, Chief Customer Officer for the Asia Pacific (APAC) region at Pizza Hut, believes that with a focus on the consumer journey, the business will see positive results. Barnes’ role is made up of three key pillars: restaurant excellence, digital experience and restaurant technology. “Restaurant excellence focuses on what happens in store – products, delivering pizzas and food safety standards and service culture. Digital experience is about understanding how customers want to interact with the brand and delivering on that, largely through online purchasing, whether that be the website, app, social media or messaging” he explains. “Restaurant technology looks at the underlying technologies that support the employees J U LY 2 0 1 9

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“ Collectively, we have brought that customer mindset to the core of our strategy” — Troy Barnes, Chief Customer Officer for APAC, Pizza Hut

of our franchises. Things like point-ofsale platforms, inventory supply chain, labour management, and supply and demand modelling.” Underlining all three pillars is customer engagement, in which Pizza Hut looks to understand and assess how each aspect works collectively under the customer experience umbrella with the strategic focus of having more customers more often to Pizza Hut. Since his position was established as the first customer role in the APAC region last year, Barnes and his team

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CLICK TO WATCH : ‘OUR PIZZA HUT STORY’

249

have worked to bring the consumer to

is about an end-to-end experience that

the forefront of the business. “Collec-

will offer an overall, seamless benefit

tively, we have brought that customer

to the customers – the company is

mindset to the core of our strategy

building the know to better understand

– including our engagements, part-

and create more value to the consum-

nerships, workshops and franchise

ers’ journey. “Leveraging digital is really

growth. We have reworked the busi-

about what journey a customer is cur-

ness with a more focused lens around

rently going through, what journey you

the customer itself, well supported by

want to create, and more importantly,

our other regional and global counter-

what journey a customer is looking for,”

parts. Our job is really then to augment

he says. When evaluating the entire

that focus with building capabilities,”

process, the firm will then divide it into

comments Barnes.

key priorities, such as the fast-casual

For Pizza Hut, digital transformation

digital store. “It’s really a concept that a nz .busi ne ssc h ief. com

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creates a common experience on the back end of understood and defined journeys. It enables our customers to order pizza for themselves and their families in a very frictionless, seamless and easy way,â&#x20AC;? Barnes explains. On a strategic level, Pizza Hut is aiming to establish a consistent perception of its franchises across all markets, with finetuning to specific local needs, usually within the menu. The company is focused on making the brand relevant to all customer segments locally â&#x20AC;&#x201C; ensuring ease, quality and excitement no matter the location.

E XE CU T I VE PRO FI LE

Troy Barnes Troy is a transformational leader driving entrepreneurial and cultural change with a focus on delivering value for customers. Extensive experience in process improvement, operations, IT, program and project management, training, coaching, mentoring and consulting leaders in a diverse cultural environment. Particularly interested in challenging situations needing transformation with a focus on customer experience and business growth. Specialties: Transformation, Customer Experience, Innovation, Process, Change Management, Lean Six Sigma, Portfolio, Program and Project Management, Coaching, Mentoring and Training.

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The kitchen revolution

As operators add more digital channels to their restaurants, it creates new complexity and challenges. Restaurants have been used to controlling the transaction flow. Now, with the rise of delivery marketplaces, mobile applications and in-store selfservice, restaurants need to compete at a higher level and adapt to a digital-first ordering environment. This means ensuring proper routing of orders into the kitchen, a focus on food quality and distribution at the right time and data/analytics to measure and improve the performance of the kitchen. Key trends impacting kitchen optimisation and production, include: • The rise of off-premise ordering & delivery To meet this growing consumer demand, restaurants need robust kitchen production systems to accommodate the flow of orders into the restaurant from multiple channels. • Speed of service Consumers no longer have any patience for waiting in lines or waiting for food. They essentially want to “speak” directly to the kitchen. • Growing dependency on kitchen data Real-Time production metrics are fast becoming a requirement. Operators need to be able to gauge order volume, production status, progress order times and manage staffing levels within their kitchen in real-time.

Successful brands we work with are investing in kitchen optimisation and production technology to stay ahead of the curve. NCR Kitchen Operations solutions enable restaurants to plan and prepare for anticipated spikes in order volumes and manage the production of orders coming from all channels to improve the customer and staff experience. Brands that are leveraging NCR Kitchen Operations and Digital Signage are also improving the customer experience by providing guests with accurate quote times and order status notifications via text paging and in-app notifications. Large quick-service chains using our technology have increased their speed of service by as much as 15% with improved visibility into order volume, production status, order times and staffing levels. Over 30,000 restaurants around the world use NCR Kitchen Operations to manage their kitchen production. While not visible to consumers, kitchen optimisation and production technology reduce errors, reduce waste and have a tangible impact on the customer experience.

Find out more. Visit www.ncr.com/restaurants and see how our technology can help your business thrive.

“ Leveraging digital is really about what journey a customer is currently going through, what journey you want to create, and more importantly, what journey a customer is looking for” — Troy Barnes, Chief Customer Officer for APAC, Pizza Hut 253 Pizza Hut has always prioritised

digital stores have definitely provided

listening to its customer feedback and

a lot of uplifting customer feedback

ensuring that any changes it makes to

which we track globally on an order-

its operations will be beneficial for the

by-order basis. The response of overall

consumer. “Technology is really break-

satisfaction and ease with which our

ing new ground by making life easier

consumers can order pizza through

– with apps or websites, social media

this new platform has increased dra-

and messaging platforms, a lot of

matically. This positive feedback has

brands and organisations are trying to

translated into sales and revenue at the

compete in the space of making it easy

end of the day.”

for customers to engage with them, al-

Barnes highlights the importance of

lowing the business to satisfy the con-

customer retention within the compa-

sumers’ needs,” Barnes notes. “The ex-

ny’s operations: “We want to under-

periences and journeys that have been

stand the behaviour of the consumer in

created as part of these fast-casual

regards to preference when ordering a nz .busi ne ssc h ief. com

PIZZA HUT

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PIZZA HUT

“ I think the exciting part is that I don’t have the answer to what that will actually look like, and that’s the thrilling part of a five-year plan” — Troy Barnes, Chief Customer Officer for APAC, Pizza Hut

256

a pizza, regardless of the brand. An understanding of that behaviour would give us insight into a mindset.” The company has been working on a datadriven project that revolves around the behaviour of customers. Once the data was collected, the company then established a “very purposeful and personalised” capability. “We’re moving away from segmentation and broad-based or broadcast marketing that leans towards certain offers and discounts. Instead we’re opting towards engaging with consumers on more of an emotional and personal level to create a more meaningful relationship,” Barnes adds. J U LY 2 0 1 9

As the company continues on its digital transformation journey, Barnes see Pizza Hut’s growth through two key aspects: “I think Pizza Hut will continue to evolve its presence in how it delivers an experience for consumers that becomes world class. I also think the firm will continue to leverage the core of its business, and the brand that underpins that, augmented by its internal culture to really drive a new way of creating those experiences.” Despite the clear goals set by the company, its digital transformation journey is not set in stone. “I think the exciting part is that I don’t have the answer to what that will actually look like, and that’s the thrilling part of a five-year plan.”

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258

Bluebell Group: digital transformation to curate omnichannel brands WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

KRIS PALMER

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BLUEBELL

Alex Misseri, Head of Digital Transformation and Revenues at Bluebell Group, discusses how the company is using digital transformation to enable cutting edge omnichannel retail experiences

ince 1954, Bluebell Group has become a name synonymous with Asian retail. Having successfully launched a broad

array of European, American and other global brands in the region, Bluebell has amassed over 150 brand partners with more than 700 online and brick and 260

mortar stores across 10 Asian countries. Responding to the advent of the digital age and the concept of New Retail – the need for retailers to have both an offline and online presence to maximise the prospects of their offering – is an ongoing endeavour that requires dynamism and market expertise to accomplish successfully. “It’s a challenge to conduct a digital transformation with one brand in one country, but it’s quite a different challenge when you have as many brands across as many countries as we do at Bluebell,” says Alex Misseri, Head of Digital Transformation and Revenues at Bluebell. “It’s a bigger challenge, but it’s also a bigger opportunity. The value of being a multi-brand distributor in so many countries is that we have so many points of view and ideas that can be taken into

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BLUEBELL

“It’s a bigger challenge, but it’s also a bigger opportunity” — Alex Misseri, Head of Digital Transformation and Revenues, Bluebell Group 262

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CLICK TO WATCH : ‘BLUEBELL, THE BRAND BEHIND THE BRANDS’ 263 account both on a local and group

the last few years we have introduced

level.” Seamless integration of online

a number of new customer-facing

and offline presences, Misseri adds, has

technologies: from handling our brands’

become vital to launching and growing

social media presence to managing

brands in Asian markets. “The mission

ecommerce and customer relationships,”

is to enable the group to curate the

explains Misseri. Emarsys, a leader in

brands we work with in a modern way.

the B2C marketing automation space,

We nurture these brands and help

has provided its state-of-the-art market-

them develop their presence online,

ing software in addition to Bluebell’s

both from a marketing and sales point

customer relationship management

of view.”

(CRM) engine, optimising the group’s

Bluebell has positioned itself to

capacity to leverage data to understand

achieve these aims through constant

its customers and personalise its

evolutions in both its back-end and front-

communications. These solutions

end technological capabilities. “Over

complement the group’s integration of a nz .busi ne ssc h ief. com

BLUEBELL

264

“ Everyone in the company, whatever their role, has acknowledged the need for change and aligned with the vision” — Alex Misseri, Head of Digital Transformation and Revenues, Bluebell Group

its preferred ecommerce platforms, Shopify and Magento, along with other Asia-specific ones. “Most of, it not all of, the consumer-facing tools that we use are in the cloud,” says Misseri. “For back-end applications, however, we manage the hosting by ourselves across various data centres in Asia.” In fact, Bluebell Group has adopted an in-house approach to many facets of its digital transformation, including its overhaul of back-end operations and change management. “We have not engaged a consulting firm to

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assist us with the transformation,”

sales and store employees, understand

says Misseri. “We decided to

and embrace the digital transformation.

organise, lead and execute it

Misseri notes that these workshops

completely internally.”

have taken on a collaborative element,

One example of this has been in

enabling staff to share ideas and identify

managing internal culture shifts

areas for adaptation and growth. “We

involved in the application of new

know that the people serving custom-

technologies. Recognising the

ers – sales people, retail managers,

importance of developing a positive

marketing managers – are those who

change-oriented culture, Bluebell has

can best identify and express the need

conducted a range of workshops to

for change. The workshops between

ensure that staff at all levels, from

the staff and top management create

executives and leadership teams to

a common understanding of what we 265

E XE CU T I VE PRO FI LE

Alex Misseri As Head of Digital Transformation and Revenues, Alex Misseri is the lead digital support of Bluebell local business units across Asia. He develops the digital ecosystem of the Group to accelerate the growth of Bluebell Brand Partners, increasing their online presence and sales. Alex has been devoted to building digital businesses and experiences for the past 12 years. First in Shanghai where he founded an eCommerce startup, before moving on to lead eCommerce for French leading female fashion group Etam. He then moved to SapientRazorfish (Publicis Group) as Head of Retail & Commerce for 4.5 years, building the agency’s Omnichannel Commerce practice and supporting major international brands to grow their online sales in China.

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BLUEBELL

US$2bn Approximate revenue

1954

Year founded

3,500+

266

Approximate number of employees

10+

Countries in Asia

150+

Brand partners

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GET YOUR DEMO

“ The next stage of market and customer needs, and how the journey will we believe those needs should be addressed.” Misseri highlights the be scaling the success of this strategy as a key initiatives that component of the wider transformation’s achievements, emphasising how vital it have been piloted remains to the ongoing process. “Every- on specific brands one in the company acknowledges the and territories” need for change and has aligned with perceive to be the evolution of the

the vision,” he says. The most difficult part of a digital transformation is the people aspect. Having people accept

— Alex Misseri, Head of Digital Transformation and Revenues, Bluebell Group

the situation, the need for change, and

269

contributing to developing the strategy

through the CRM component, is helping

and to executing it will lead us to where

us to better understand our customers.

we need to be.”

We are also trying to incorporate social

This people-driven attitude perme-

listening based on AI.” Artificial Intelli-

ates Bluebell’s digital transformation

gence is starting to be leveraged in

strategy, with a particular focus on

various parts of the business: “We are

establishing solutions internally that

currently doing a proof of concept with

maximise the value of consumer infor-

Chain of Demand in order to predict

mation and insights. “We are investing

demand for various products based on

more resources and money into

historical primary data and various types

analysing customer data, but are still

of public data, in order to improve what

at the beginning of our journey,” says

we call ‘our buys’: which products, and

Misseri. “We have the main building

in what quantity, we buy from the brands

blocks in place, and have begun ana-

we work with.” The aim, Misseri says, is

lysing data to inform business decisions.

to optimise the merchandising of the

For instance, our work with Emarsys,

stores, both online and offline, based a nz .busi ne ssc h ief. com

BLUEBELL

CLICK TO WATCH : ‘THE BLUEBELL CURATED PATH’ 270 on intelligent, data-driven selection conducted by an automated platform. For Bluebell Group, the next steps are focused on taking full advantage of the technologies and strategies that have been put in place so far. “The next stage of the journey will be scaling the initiatives that have been piloted on specific brands and territories,” says Misseri. “This will involve bringing those successful pilots and learnings to our other brands, and making it the default to any new brand we bring onboard in the future.” This measured approach is not stifling the company’s J U LY 2 0 1 9

adaptability, however, with Misseri noting that the landscape demands a constant eye on the latest changes and technologies. “Asia, and retail in Asia, is constantly changing,” he says. “Successful retailers, distributors and brands have to constantly adapt to these changes and reinvent themselves every few years, if not months. Understanding these changes and adapting to them is mission critical.” With its flexible and positive internal culture in place, Bluebell has established an exceptionally stable model for this versatility in the industry and region. Misseri concludes: “To accelerate the growth of our brand partners, we must always acknowledge and understand local cultural diversity whilst creating efficient functions and proficiencies that enable faster roll-outs and seamless operations.”

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PANALPINA SUSTAINABLE LOGISTICS TO MEET CUSTOMER DEMAND 272

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WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

NATHAN HOLMES

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PA N A L P I N A

PANALPINA’S GLOBAL HEAD OF QUALITY, HEALTH, SAFETY AND ENVIRONMENT, LINDSAY ZINGG, REVEALS HOW THE COMPANY IS LISTENING TO CUSTOMER DEMAND AND IMPLEMENTING A SUSTAINABILITY TRANSFORMATION JOURNEY

T 274

he Panalpina Group is one of the world’s leading providers of supply chain solutions. It focuses on four core products – Air Freight,

Ocean Freight, Logistics and Manufacturing, Energy and Project Solutions – and operates globally with 500 offices across 70 markets and clientele spanning 12 different industries. For Panalpina, sustainability is a top priority. “I think sustainability is absolutely the way the world’s going. 14 years ago, these issues were never talked about and now it’s becoming a differentiator and a key aspect of business operations,” says Lindsay Zingg, the firm’s Global Head of Quality, Health, Safety and Environment. “We’re finding companies won’t work with us unless we are climate friendly and are willing to help them achieve their climate goals. It’s not just the right thing to do, it’s a core part of how we must do business.” Over the past decade, Panalpina has fully embraced sustainability and, more importantly, J U LY 2 0 1 9

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PA N A L P I N A

“ W E HAVE BECOME ONE OF THE TOP COMPANIES FOR SUSTAINABILITY – IT’S REALLY BEEN A MASSIVE TRANSFORMATION” — Lindsay Zingg, Global Head of Quality, Health, Safety and Environment, Panalpina

the changes its customers, employees and shareholders expect. “Honestly, we have now become one of the top companies for sustainability – it’s really been a massive transformation. Everyone from our management team in Basel to employees in the warehouses around the world have had to change their mindset and approach. It’s been really motivating to see,” Zingg says. “Sustainability is really important in our industry.” When it comes to ensuring the company is running its operations sustainably,

276

Zingg attributes this to “defining clear goals, having a clear organisation with sustainability managers and allocating the necessary resources in terms of people, time and tools”. Demands from customers, employee interests and regulation are the three key drivers of the recent shift in the logistics industry regarding sustainability. “We’re seeing that the retail and automotive industries – our big consumer-facing customers – are highlighting the importance of sustainability. Some of our customers want to be carbon neutral by 2020. For that to happen we must make sure that we, J U LY 2 0 1 9

CLICK TO WATCH : ‘PANALPINA – GLOBAL PLASTIC CAMPAIGN’

as their logistics provider, are reducing our own CO2 emissions.” In response, the firm has deployed

Taking this even further, in 2015 Panalpina committed to a sciencebased greenhouse gas (GHG) emissions

biodiesel trucks in Singapore to serve

reduction targets and was one of the

its customer L’Oréal. Last year, the

first businesses in the logistics industry

company launched an agreement with

to have them approved by the Science

CMA CGM to reduce carbon emissions

Based Target initiative. As part of this,

caused by ocean freight. The goal

the company has pledged to lower its

focuses on the use of liquified natural

Scope 1 and Scope 2 emissions by 20%

gas (LNG) powered vehicles that

by 2025 against a 2013 baseline. Scope

will emit 25% less CO2 emissions,

3 emissions from business travel will

99% less sulfur emissions, 99% less

be reduced by 25% from 2017 levels.

fine particles and 85% less nitrogen oxides emissions.

As another part of its effort to minimise its environmental impact, a nz .busi ne ssc h ief. com

277

PA N A L P I N A

Panalpina (Philippines) supporting underprivileged children

278

Panalpina has incorporated recycling

waste is segregated and sold to recy-

into its sustainability transformation

cling companies as possible to reduce

strategy, ensuring it recycles as many

the amount of waste going into landfill.

waste materials as possible, as well as

Between 2013 and 2018, Panalpina

sourcing new materials from recycled

used 38% less paper in its operations,

products. The company aims to use as

as well as 28% less water despite its

many recycled products in its day-to-

employee figure remaining constant.

day operations as possible â&#x20AC;&#x201C; including

The companyâ&#x20AC;&#x2122;s sustainability opera-

using 100% recycled plastic from

tions span across biodiesel trucks,

Dubai for its polo shirts. The business

LED lighting, tree planting, recycling,

has also partnered with the Canadian

water conservation, the introduction

firm Shred-it to sustainably dispose of

of electric vehicles and less air travel.

its wastepaper. The business ensures

The scope of Panalpinaâ&#x20AC;&#x2122;s dedication to

as much of its cardboard and plastic

helping the environment and meeting

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customer demand. As an employer of 14,500 people, the company has worked hard to encourage its staff to support the strategy, ensuring that every level of the business is producing as little environmental impact as possible. But for Panalpina, sustainability is not just GHG emissions and environmental issues. It also includes the health and safety of employees,

“ W E ARE LOOKING FOR POSITIVE ACTIONS THAT BENEFIT NOT ONLY THE COMPANY BUT ALSO THE COMMUNITIES WHERE WE OPERATE” — Lindsay Zingg, Global Head of Quality, Health, Safety and Environment, Panalpina

E XE CU T I VE PRO FI LE

Lindsay Zingg Lindsay Zingg, a chemist by training, has been Panalpina’s Global Head of Quality, Health, Safety and Sustainability for 14 years. With over 20 years’ experience in the field of sustainability, she spent her early years in the oil and gas industry before transitioning to the logistics world. In her role at Panalpina, she has led the effort to attain global certification according to ISO 14001, 9001 and OHSAS 18001, and is the driving force behind Panalpina’s GHG reduction programs, its record setting health and safety programs, achieving an “-A” score from CDP and its sustainability reporting efforts. Most importantly she is the mother to two young children, for whom she is committed to leave a healthier, more sustainable world. a nz .busi ne ssc h ief. com

PA N A L P I N A

“ E VERYONE FROM OUR MANAGEMENT TEAM IN BASEL TO EMPLOYEES IN THE WAREHOUSES AROUND THE WORLD HAVE HAD TO CHANGE THEIR MINDSET AND APPROACH. IT’S BEEN REALLY MOTIVATING TO SEE” — Lindsay Zingg, Global Head of Quality, Health, Safety and Environment, Panalpina

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Shanghai Port

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Efficient. Pragmatic. Innovative. ADDING VALUE WITH SUSTAINABLE ANALYTICS As experienced consultants who are passionate about making a positive, sustainable impact, we guide companies to implement intelligent sustainability solutions. With our own user-friendly, cost-effective web-based solution we offer a comprehensive platform to manage your sustainability performance. We have put all our experience in the development of the SulyticsTool to deliver a platform for organisations of all sectors and sizes that has everything you need and nothing you donâ&#x20AC;&#x2122;t. The SulyticsTool is made by CSR experts for non-experts and its intuitive interface allows for quick onboarding with minimal training requirements. With the SulyticsTool, we make complying with all the leading accounting and reporting standards easy â&#x20AC;&#x201C; be it CDP, GRI, DJSI, GRESB, or the EU non-financial reporting directive.

LEARN MORE ABOUT SULYTICS

MAXIMISE THE VALUE OF YOUR DATA Do it like Panalpina! Reap the benefits of increased data transparency and quality, easy workflow management, and efficient reporting. The SulyticsTool gives your team more time and energy to focus on improving your sustainability performance.

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283

providing high quality services, con-

standards for quality and environmen-

ducting business in an ethical manner,

tal management. Most important of all,

innovation and thought leadership

customers are recognising Panalpina’s

– and, ultimately, helping customers

outstanding sustainability programs in

achieve their sustainability goals. It has

their RFQ processes.

made great progress in all of these

Panalpina partners with external

areas. In 2018, the Panalpina team set

agencies to help them achieve their

a new record for health and safety

goals. Two Swiss-based firms, Sus-

performance, the company’s best year

tainserv in Zurich and Sulytics in Basel,

yet. Its ethics and compliance programs

are essential partners who provide

are considered best-in-class, and the

advice and tools to guide Panalpina’s

company is globally certified according

sustainability efforts. Panalpina has

to ISO9001 and ISO14001, the leading

deployed a tool from Sulytics, which a nz .busi ne ssc h ief. com

PA N A L P I N A

Enabling the United Nations’ World Food Programme

sustainserv: Inspiring Meaningful Change Corporate sustainability and ESG advisory services since 2001. Practical and creative solutions, tailored for your firm and your goals. • Materiality and Benchmarking • Strategy development • ESG ratings and rankings optimisation • Sustainable supply chains

• Energy and GHG inventories • CDP SBTs, SDGs and GRI • Training and engagement • Sustainability and CSR reporting

Learn More

Panalpina (Cambodia), working on improvements at schools

Panalpina (Kenya), supporting school children in Kenya Packing for a relief flight for Unicef

285 it uses to collect data from all of its

rate sustainability not only by its cus-

offices. The web-based platform has

tomers but by several external groups.

been developed with state-of-the art

For example, CDP (formerly known as

sustainability accounting capabilities,

the Carbon Disclosure Project), the

enables the company to transparently

premier platform for corporate GHG

assess its sustainability data and

reporting, gave the company a grade of

efficiently report to senior management

â&#x20AC;&#x153;-Aâ&#x20AC;? in 2018 for its response to climate

teams and external stakeholders.

change issues. The business is one

In addition, Sustainserv has provided

of only 12 companies in Switzerland to

strategic guidance, including materiality

be ranked so highly by the organisation,

assessments and support for sustaina-

with the average ranking for firms in the

bility reporting for Panalpina for almost

logistics industry at a C-level. Panalpina

10 years.

has also received a Gold rating from

With this support, Panalpina has been recognised as a leader in corpo-

EcoVadis for its corporate social responsibility, placing within its top 3% a nz .busi ne ssc h ief. com

PA N A L P I N A

286

Panalpina (Taiwan), collecting and shipping shoes to Africa

J U LY 2 0 1 9

performers overall and in the top 1% of its industry. Panalpina engages all of its employees in these activities. In 2014, the firm launched Sustainable Action Week to encourage members of its staff to join forces and focus on the sustainability mission of the company. Since its start, nearly 1,500 initiatives have taken place globally, benefiting those most in need and improving the sustainability of Panalpina workplaces and the communities where it operates. In 2018, more than 10 customers and 25 charities took part in over 400 activities in all of Panalpinaâ&#x20AC;&#x2122;s offices. Charities sup-

Panalpina (Taiwan), shoes for life inititave to support Africa

ported this past year include the Basel Area Cancer Foundation and many local charities across Asia. Panalpinaâ&#x20AC;&#x2122;s teams took part in activities including removing plastic waste from beaches, cleaning childrenâ&#x20AC;&#x2122;s schools, working with disadvantaged children, helping feed the disadvantaged members of the community and working with a home for the elderly. The company also organises relief flights for UNICEF on an annual basis, targeting different nations in Africa each year and supplying relief goods to countries that a nz .busi ne ssc h ief. com

287

PA N A L P I N A

288

“ I THINK THE WHOLE SUSTAINABILITY TOPIC IN FIVE YEARS WILL BE ON A COMPLETELY DIFFERENT LEVEL AGAIN” — Lindsay Zingg, Global Head of Quality, Health, Safety and Environment, Panalpina

J U LY 2 0 1 9

require humanitarian assistance. Over the past 14 years, Panalpina has seen a huge transformation in becoming a global leader for sustainability. “We are looking for positive actions that benefit not only the company but also the communities where we operate,” comments Zingg. Panalpina has also found that using the UN Sustainable Development Goals (SDGs) as a framework has been helpful to struc-

500

Number of offices worldwide

1935

Year founded

14,500

Approximate number of employees

ture its efforts.. The company selected

different level again,” she adds.

six SDGs from the 17 that are most im-

As it becomes increasingly important

portant to its operations. “I structured

for big businesses and their consumers

the whole department around those

to look at the environmental impact of

goals and we measure per each goal

every stage of the supply chain, Lindsay

how many initiatives we do for them.

and her team will continue to ensure

It’s really been the umbrella that we

Panalpina remains at the forefront of

needed to bring this all together in one

the sustainability scene.

place,” says Zingg. “At the same time, I think the whole sustainability topic in five years will be on a completely a nz .busi ne ssc h ief. com

289

290

Marsh Indonesia: finding opportunity in the challenging insurance space WRITTEN BY

OLIVIA MINNOCK

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MARSH INDONESIA

Following the $5.6bn global acquisition of JLT, Douglas Ure explains how Marsh Indonesia will maintain local commitment amidst digital disruption in the insurance space

arsh has a global strategy of growing our business, and in doing so we focus on and prioritize our clients and colleagues,” says

Douglas Ure, Chief Executive Officer & President Director of Marsh Indonesia. Having been with 292

Marsh for 12 years, Ure is now taking a new step and moving to Jakarta as part of Marsh Indonesia, and for him the most exciting part is the people. “The team we have in Indonesia is fantastic. We have a real client centric attitude,” he enthuses, expressing admiration for the “energy, drive and collaboration across the Indonesia team”. Having worked with Marsh London, Ure was responsible for one of the risk consulting practices that had him working with clients across the UK, Europe, Middle East and Africa. In 2014, Ure relocated to Singapore and has been getting to grips with the Asian market, and he looks forward to continuing his journey across a dynamic continent. “Asia is such a vast, rich culture with huge opportunities for growth. Some clients, organisations and countries are very advanced and sophisticated with J U LY 2 0 1 9

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1983

Year founded

35,000

Number of employees (Group)

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MARSH INDONESIA

regards to insurance and risk, others less so. In North Asia, for example, a lot of the Marsh client base is driven by large manufacturing and technologybased companies with sophisticated risk management needs.” As for Indonesia? “Marsh’s Indonesian business has been in operation for 35 years, and we have a mix of local and international companies that we are privileged to work with, all with bespoke needs and requirements. In my regional Asia role, I had the opportunity to work with some Indonesian clients and visit the country regularly.

294

However, for me living, working and being truly engrossed in the culture will be fantastic. I’m really looking forward to learning more about Indonesia and

“ Cyber is a kind of risk you can’t put your finger on – it doesn’t have any boundaries” — Douglas Ure, Chief Executive Officer & President Director of Marsh Indonesia

making a difference to our operation.”

INTEGRATING TWO INDUSTRY GIANTS Since we last spoke to Marsh Indonesia in 2018, the group (Marsh & McLennan Companies, Inc) has been involved in a significant global acquisition in the form of insurance and risk management, JLT (Jardine Lloyd Thompson). Having completed the last steps of the US$5.6bn deal, Marsh is now working to integrate the two

J U LY 2 0 1 9

CLICK TO WATCH : ‘#RIMS2019: DRIVING THE DISCUSSION ON DIVERSITY AND INCLUSION’ 295 businesses together. It’s a significant

Throughout what is more of a culture

shift, which Marsh has pledged will

integration than a culture shift,

happen gradually. “A key part of the

Marsh will maintain careful, elegant

integration is that it’s really comple-

change management strategies.

mentary,” says Ure. “Speaking to the

“Managing that change and transition,

Southeast Asia landscape, we see

collaborating with new colleagues as

aspects of the Marsh and JLT cultures

they integrate has started really well.

really complement each other,” he

I am genuinely impressed at how both

adds, noting the companies share a

teams are coming together, sharing

client-centric approach and commit-

ideas and learning from each other.”

ment to collaboration.

Ure adds that while this will be a

“Obviously there are differences

gradual process, some things can

as well, so there’s going to be change

be done quickly and these achieve-

for both Marsh and JLT as the two

ments will be celebrated. “With a

companies come together,” Ure adds.

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MARSH INDONESIA

296

organisations, we create a solid team,”

treated. A global development for the

he says, adding that the end result will

company, the JLT acquisition is one

be a “broader and more sophisticated

of many that will be enacted locally, in

service with an even greater value

true Marsh style. “We have local talent

proposition” to clients.

providing local solutions to our clients.

Following the integration, Ure stresses

That ultimately means they’re engaging

that Marsh will carry through its “Seven

the clients, talking the same language.

Client Principles and Global Code of

The local approach is obviously really

Conduct” as it does already in each of

important. Marsh operates across

its locales. This covers everything from

more than 130 vastly different countries,

ensuring documentation is compliant

which requires us to apply a local

to the way clients and colleagues are

strategy as well. We take our global

J U LY 2 0 1 9

strategy, adopt and adapt it to what

to support our consumer segment,”

will work best in Indonesia. We are

says Ure. Marsh’s consumer segment

conscious of the consistency of our

involves working with large clients

service that must be delivered to

who have a number of customers

a client wherever they are in the world,”

or are part of the sharing economy,

Ure continues, outlining that training

and the business has worked

and development needs of staff often

extensively in Asia to provide technol-

vary by location.

ogy platforms that enable insurance solutions to be provided to consumers.

KEEPING ABREAST OF DIGITAL DISRUPTION

increasingly prevalent in the region,

Aside from its recent $5.6bn acquisition,

Marsh Indonesia is not ignoring this

Marsh continues to look at investment

key driver of growth. “Technology

opportunities closer to home. “We’ve

is critical to running any successful

invested quite heavily in technology

and efficient business,” says Ure, who

With tech-led organisations

E XE CU T I VE PRO FI LE

Douglas Ure Douglas Ure is the Chief Executive Officer & President Director of Marsh Indonesia with over 20 years of experience working in insurance and risk management. He began his career in in the manufacturing sector where he was responsible for corporate risk management and insurance before moving into the consulting industry. Ure joined Marsh in 2007 and has been involved in various roles covering consulting, analytics and claims across UK, Europe, and Asia. Ure moved to Asia in 2014 to be based in Singapore before moving to Jakarta, Indonesia in 2019.

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MARSH INDONESIA

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299 feels data analytics is increasingly vital for Marsh to make better, more informed decisions both internally and for its clients. “We need to collect data, which could be on losses or claims, or data about insurance premiums and how those costs might be increasing or reducing. It could be beginning to benchmark our clients across a particular industry to give an indication of market prices or buying trends. Having systems that pick that information up and allow colleagues to navigate it and share it with clients around their risk profile is vital.”

“ The team we have in Indonesia is fantastic. We have a real client centric attitude for a greater value proposition to our clients” — Douglas Ure, Chief Executive Officer & President Director of Marsh Indonesia

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To keep up with the blistering pace of advancement in data and digital more widely, collaboration is key and Ure says that rather than being seen as a threat, tech startups should be welcomed with open arms. “We’ve already made a number of partnerships with insurtech companies,” he says, adding that Marsh blends this with internal development too. “We’re investing a lot internally in developing our platforms and support systems. We’ve recruited and built up a team that’s providing technology300

based solutions across the company. One example is the growing cyber exposure our clients are facing and how we can support our clients to manage this exposure more effectively. For example, we can profile clients and industries and types of cyber events that could happen, and the likely financial impact to their business. Interestingly, it’s not just from the perspective of internal development that the fourth industrial revolution is opening up new opportunities for Marsh. It’s also worth remembering that new technology means new risk – and this is a growing business segment for Marsh.” J U LY 2 0 1 9

MOVING WITH THE TIMES Going forward, Ure and his team will continue to see every challenge as a new opportunity, especially the integration of JLT. “Continuing business as usual, serving our clients and delivering what our clients expect while that change is happening, will be critical,” Ure comments. Marsh will also continue to invest locally and support clients as they grow. “Going back to the core principles of Marsh, challenging ourselves to develop talent is again an opportunity,” he adds. Indeed, retaining top talent will be key, driven by Marsh’s commitment to change management and the development of a positive culture. “We like to communicate directly with our teams, sharing information about new initiatives, for example. We also like to give people opportunities for their own training and development. Sometimes that can be professional training and other times it can be opportunities for our colleagues to give something back to the community through rewarding volunteering initiatives.” In terms of investment and growth, Ure comes back to the exciting prospect of a new region. “In Indonesia, a nz .busi ne ssc h ief. com

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we want to take some of the investment we’ve made and deploy it here locally. That’s a work in progress for us: with more than 260mn people live in this country so it’s a huge consumer base.” Indeed, Indonesia itself is heavily investing in its own development with ongoing infrastructure projects, which all adds opportunity from Ure’s perspective. In addition, as the country continues to attract investment from further afield, Marsh will be there with those companies every step of the way. J U LY 2 0 1 9

“ We have local talent with global network and global expertise providing local solutions to our clients” — Douglas Ure, Chief Executive Officer & President Director of Marsh Indonesia

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“We also recruit people into the

the world, we can give them the

Indonesian local market that have to

confidence and comfort of receiving

service Japanese and Chinese clients

an established, consistent standard

that are investing into Indonesia. We

and high quality people in New York,

employ Japanese and Chinese locals

Paris, Jakarta or wherever they are

alongside an Indonesian workforce to

in the world.”

work directly with those clients that are investing here,” Ure explains. “That’s where Marsh really stands out and is committed to the consistent service delivery in providing a higher quality of service. Although, organisations might be headquartered somewhere else in a nz .busi ne ssc h ief. com

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