Business Chief ANZ – September 2019

ANZ EDITION SEP TEMBER 20 19 anz.businesschief.com

Customer-focused digital transformation in gaming and hospitality

Making a difference for customers How technology is rejuvenating the financial health of consumers

Sustainable companies inAsia

A responsible approach to water services

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FOREWORD

W

elcome to the September

will be all the better for it,” says Kelly.

issue of Business Chief ANZ!

This month’s cover feature is the

We also speak exclusively with Colliers International, Bank of New

Bank of New Zealand. We interview

Zealand, Guild Group, Teys Australia,

Stephen Bowe, GM of Digital &

SIMEC Energy Australia, Future Busi-

Applications, who has been tasked

ness Council, Millennium Services

with delivering state-of-the-art

Group Limited, SKYCITY Entertain-

customer experiences to the

ment Group and Sealed Air

155-year-old bank by tapping into

Corporation.

the wealth of digital tools at the financial sector’s fingertips.

In this month’s City Focus we profile Western Australia’s capital, Perth,

Also in the magazine, we speak

in order to understand the mineral

with Eamonn Kelly, General Manager,

wealth that was the city’s making and

Major Program Delivery of Melbourne

the service industries that continue to

Water, to uncover how the organisa-

sustain it.

tion is employing best practice to keep the water flowing.

Do you have a story to tell? If you would like to be featured in an upcom-

Part of it is cultural, ensuring that

ing issue of Business Chief ANZ, get

people feel appreciated: “When you

in touch at:

build a passion in people that makes

william.smith@bizclikmedia.com

them want to come to work and you look after their wellbeing, they will

Enjoy the issue!

repay you in spades and your projects

William Smith a nz .busi ne ssc h ief. com

03

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ANZ EDITION

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CONTENTS CONTENTS

12

Where technology is revitalising customers’ financial health

30 AUTOMATION FOR A NEW ERA OF SMART MANUFACTURING

40 MIR IMRAN Serial entrepreneur, CEO of Rani Therapeutics and inventor of the robotic pill

50

60 City Focus

PERTH EXCITING SUSTAINABLE CITY INNOVATIONS AROUND THE WORLD

68

sustainable companies inAsia

CONTENTS

108 Colliers International

86 Melbourne Water

118 132 Guild Group

Teys Australia

150 SIMEC Energy Australia

182 Millennium Services Group Limited

168 Resilient Melbourne

210 Sealed Air Corporation

196

SkyCity Entertainment Group

CONTENTS

226 Standard Chartered Bank

252 Sunshine Insurance Group

280 Merchantrade Asia Sdn

294 Manulife

266

Decathlon

312 326

PT Semen Indonesia

342 Corning Incorporated

Soorty Enterprises Pvt. Ltd

12

Bank of New Zealand: where technology is revitalising customers’ financial health

WRITTEN BY

LAURA MULLAN PRODUCED BY

ANDREW STUBBINGS

SEPTEMBER 2019

13

a nz .busi ne ssc h ief. com

BANK OF NEW ZEALAND (BNZ)

Want to better manage your finances? Bank of New Zealand (BNZ) is showing customers how it’s done

I

f you want to start a new chapter in a faroff country, one of the first logistical hurdles you’ll face is creating a local bank

account. This was exactly the case when Stephen Bowe touched down in Australia just over a decade ago. “Being new to the country, I needed a bank account. I actually tried opening accounts with several different banks, but in each case the whole pro14

cess was awful,” Bowe recalls. “I vividly remember walking through Sydney’s CBD (central business district) thinking to myself, ‘If I ever get the chance to start a bank that’s genuinely focused on the customer, I’ll show them how to do it...’ I suppose the moral of the story is be careful what you wish for.”

Fast-forward a year and Bowe had gotten his wish. He left his career in telecoms and joined a bank, helping the National Australia Bank (NAB) launch a new online bank called UBank. “Ever since then I’ve been super passionate about how to make banking better for customers and specifically how to do that online,” Bowe enthuses. “I think if you look at banks around the world, they all talk about how they’re trying to focus on the customer, but it’s quite clear that in many geographies, they have failed to do that adequately.” Bowe also points out that SEPTEMBER 2019

15

1861

Year founded

5,000

Approximate number of employees

a nz .busi ne ssc h ief. com

BANK OF NEW ZEALAND (BNZ)

16

“ We can see that we’re making a difference for our customers.

We’ve found that people who use our platform to compartmentalise their money are hitting their goals more frequently.

They’re saving greater amounts of their income” — Stephen Bowe, General Manager, Digital Bank of New Zealand

despite widespread adoption of digital services by customers, it’s important not to equate usage with good service.

“Just because you’ve seen exponential growth in mobile banking usage, it doesn’t mean that your app is any good. The reality is that even if it was rubbish, people would still use it in droves because of the convenience it provides.” Instead, banks need to think much more deeply about how they create value for their customers in their everyday lives.

Today, Bowe is making his mark at NAB subsidiary, Bank of New Zealand (BNZ), as the firm’s GM, Digital & Applications. He and his team have been tasked with delivering state of the art customer experiences to the 155-year-old bank by tapping into the wealth of digital tools at the financial sector’s fingertips. “If you look at most digital banking offerings around the world today, they pretty much all look and feel the same. It’s a one size fits all proposition where customer interactions are largely transactional, and the service is increasingly commoditised.

The whole process is unexceptional… but it doesn’t have to be like that.”

And so, Bowe and his team searched

SEPTEMBER 2019

CLICK TO WATCH : ‘BANK OF NEW ZEALAND – WHAT ELLA WANTS’ 17 for a different way to help BNZ stand

good with money, so they can do great

out from the crowd. Instead of trying to

things with it. Essentially, we want them

simply improve the current paradigm

to achieve better financial outcomes,

of online banking, they went back to the

however they define those outcomes

drawing board and spent a significant

for themselves,” says Bowe.

amount of effort to decipher what

With this in mind, BNZ created a

customers really want from their bank.

brand new online banking platform

Whether trying to pay off a mortgage or

called YouMoney, that specifically

saving for a wedding, most customers

focused on helping customers man-

are trying to make their bank balances

age their money more effectively.

stretch to meet the needs of their daily

Customers can set up as many

lives. That spurred BNZ to make

accounts or ‘pots’ as they want. They

financial wellness a core mantra for

can then personalise them by adding

the firm. “At BNZ, our whole purpose

photos and goals, as well as moving

is based around helping customers be

money effortlessly using a novel drag a nz .busi ne ssc h ief. com

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“ We’re aiming to make BNZ the premier place to work in digital in New Zealand” — Stephen Bowe, General Manager, Digital Bank of New Zealand

and drop capability. “It just looks completely different,” enthuses Bowe.

“It’s highly personalised; it doesn’t resemble the traditional ledger of most platforms. Instead we’ve focused on design to add the little details that delight customers. We’ve asked ourselves: ‘How can we make each digital banking experience remarkable? How do we create everyday exceptional experiences?’ We’re working to turn an average experience into an awesome

E XE CU T I VE PRO FI LE

19

Stephen Bowe Originally from the UK, Stephen’s career started in telecommunications, working with clients such as BT, Vodafone and Cable & Wireless. In 2006 Stephen moved to Sydney and shortly after joined NAB as part of the team that originally set up UBank, where he held a variety of roles including Head of User Experience and Digital Media.

In 2012 Stephen made the short trip across the Tasman to join BNZ to lead the bank’s digital team, with accountability for all customer facing online channels.

Whilst at BNZ, Stephen and his team are relentlessly focused on transforming banking for the better, specifically by creating remarkable banking experiences online, which are truly focused on the customer. Overall the team’s aim is to bring to life BNZ’s goal of helping people be good with money, so they can do great things with it.

a nz .busi ne ssc h ief. com

BANK OF NEW ZEALAND (BNZ)

20

SEPTEMBER 2019

“ We think helping customers be good with money is a fantastic challenge to rally in behind.

We can make a material impact for New Zealanders financial wellbeing by helping them be good with money” — Stephen Bowe, General Manager, Digital Bank of New Zealand

a nz .busi ne ssc h ief. com

21

Skills a commodity in the new cloud economy How cloud transformation is hindered by a skills gap

Cloud is becoming an increasingly important driver for economies.

A report from Deloitte has found organizations are both thriving and being challenged by the burgeoning prominence of cloud. Key drivers behind adoption of cloud services are delivering better customer service and keeping pace with innovative competitors. But a common challenge, which often hampers progress, is the lack of cloud education – the shortage of institutional cloud knowledge and lack of technical cloud skills within organizations. It’s a challenge for IT, but also for non-technical staff as they grapple business prerogatives in the new cloud paradigm.

Taking up the challenge

Creating the future together

AWS has taken up this challenge, with organisations including NAB and Sportsbet rolling out the AWS Skills Guild partnership program. This large-scale cloud training program helps organizations build cloud skills in-house whilst delivering broad based understanding of cloud thinking. This enables staff to effectively adopt, participate in and lead digital transformation initiatives.

NAB, for example, has created its own Cloud Guild, and incorporated the AWS program, with thousands of staff undergoing foundational training and hundreds more advancing to become AWS Certified – thereby growing a priceless skills base on which to build a more modern organization. NAB is now enjoying the economic benefits of cloud, with adoption continuously accelerating.

Get the insights Download the report today to get perspectives on benefits and challenges from businesses who have already embarked on their cloud transformation journey, including NAB, nib, Finder and Fugro Roames. Get insights into the business use cases for cloud services, their drivers for adopting cloud and the impacts on business operations.

www.awsinsight.com.au/cloudvalue

The economic value of cloud services in Aust ralia AWS 2019

experience.” This digital transforma-

seem a daunting task. To tackle this

tion is already starting to see dividends:

financial challenge, BNZ also launched

BNZ was named Best Consumer

a new feature that allows customers

Digital Bank in New Zealand and Most

to change their mortgage payments

Innovative Digital Bank in Asia-Pacific

online and make micropayments.

at the 2018 Global Finance awards.

“Since it launched, we’ve been able to

Customers are also reaping the

save BNZ customers over NZD$585m

benefits, contends Bowe. “We can see

in future interest payments. We’ve

that we’re making a difference for our

knocked more than 135,000 years off

customers. We’ve found that people

mortgages and the average customer

who use our platform to compart-

has saved over NZD$10,000.” The

mentalise their money are hitting their

most interesting fact up Bowe’s sleeve

goals more frequently. They’re saving

though, is that 67% of people’s changes

greater amounts of their income.” With

have cost less than $50 a fortnight –

many people keen to get on the prop-

that’s the cost of a cup of coffee per day.

erty ladder, repaying a mortgage can

It’s worth noting that BNZ has not

a nz .busi ne ssc h ief. com

23

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SEPTEMBER 2019

CLICK TO WATCH : ‘BANK OF NEW ZEALAND – WAKE UP YOUR KIWISAVER ACCOUNT’ 25 only zeroed in on the customer expe-

a diverse ecosystem of digital firms.

rience, but it’s also been keen to

“We’re working to create an environ-

reimagine the employee experience

ment where digital natives want to

too. As the war for talent heats up and

work,” he adds. “Everything from our

businesses scramble to attract and

customer research rooms to our break

retain top talent, Bank of New Zealand

out areas reflect our digital ethos”

has pushed ahead with cutting-edge

Additionally, in a bid to boost talent

employee initiatives. This is perhaps

retention, the firm has worked hard

best encapsulated by the firm’s digitally-

to upskill its staff, setting its sights on

savvy new premises in Wellington.

the up-and-coming realm of cloud

“We’re aiming to make BNZ the

computing. In fact, Bowe points out

premier place to work in digital in New

how BNZ’s parent firm, NAB, has

Zealand,” explains Bowe, noting how

more AWS-certified engineers than

the firm is not only contending with

any other organisation in the whole

other banks, but also competing with

of Australia, other than Amazon Web a nz .busi ne ssc h ief. com

BANK OF NEW ZEALAND (BNZ)

C O M PA N Y FACT S

• Today, Bank of New Zealand employs over 5,000 people in New Zealand • The firm has 153 branches across the country

26

SEPTEMBER 2019

Services (AWS) of course. “We’re on course to replicate that here in New Zealand at BNZ.” At the end of the day, most of BNZ’s initiatives revolve around one common aim: improving its customers’ financial wellbeing. As customers focus on saving – whether managing day-to-day income and expenses, building up a rainy-day fund or saving for retirement – banks increasingly are recognising that they have a duty to help customers navigate these challenges and promote better financial health. BNZ has clearly put this ethos into motion with its digital transformation efforts. It’s this, says Bowe, which distinguishes BNZ from the pack. “I feel we have a strong sense of purpose,” he reflects.

“We think helping customers be good with money is a fantastic challenge to rally behind. We can make a material impact for New Zealanders financial wellbeing by helping them be good with money.”

a nz .busi ne ssc h ief. com

27

TECHNOLOGY

30

AUTOMATION FOR A NEW ERA OF SMART MANUFACTURING We take a look at the possibilities and potential pitfalls of automation, examining a few of the companies heralding a smarter, more efficient and sustainable approach to manufacturing WRITTEN BY

WILLIAM SMITH

SEPTEMBER 2019

31

a nz .busi ne ssc h ief. com

TECHNOLOGY

T

he drive for automation is showing no signs of abating, with new manufacturing centres increasingly requiring automation technolo-

gies to be built in. ‘Smart’ manufacturing has become the watchword for companies in the industry. The Siemens Smart Manufacturing Innovation Centre in Chengdu, China, for instance, opened on 21 May this year. Ericsson, meanwhile, is planning to open an automated smart factory in the United States in 2020.

32

In a manufacturing context, automation takes many forms. Whether that’s 3D printers removing human error from the equation, quality control software increasing throughput or robots able to assemble parts with unrivalled speed and precision. In recent years, this activity has been supercharged by the maturation of technologies such as artificial intelligence (AI) and machine learning.

Enabling the ‘smart’ manufacturing of the future, such advancements help to imbue automated solutions with qualities of human workers. A ‘dumb’ 3D printer will continue to print even if there has been a failure in the process, wasting resources.

A ‘smart’ solution employing AI and machine learning, however, could recognise failure and take measures to abort or restart the process.

SEPTEMBER 2019

“A TOTALLY AUTOMATED OR ‘LIGHTS OUT’ FACTORY HAS THE ATTENDANT BENEFIT OF NOT REQUIRING SYSTEMS NECESSARY FOR HUMAN WORKERS, SUCH AS LIGHTING AND HEATING, THUS REDUCING ENERGY CONSUMPTION”

a nz .busi ne ssc h ief. com

33

TECHNOLOGY

The business case for increasing

34

A 30% rise in robot installations

automation is obvious, but anxie-

worldwide, for instance, was esti-

ties persist about the impact such

mated to create an additional

technologies will have. Research by

$5tn in global GDP. The world

Oxford Economics has suggested

is well on its way to meeting such

that, by 2030, 20 million manufactur-

targets, with the number of robots

ing jobs will have been lost to robots,

used in manufacturing tripling

with those losses disproportionately

in the last 20 years. A totally auto-

affecting lower-skilled workers and

mated or ‘lights out’ factory has

those in poorer countries. Such an

the attendant benefit of not requiring

outlook is tempered, however, by

systems necessary for human work-

the expected creation of as yet

ers, such as lighting and heating,

unknown industries made possible

thus reducing energy consumption.

by robots.

“ IT IS CLEAR THAT WE ARE CURRENTLY AT THE BEGINNING OF A NEW ERA OF AUTOMATION” SEPTEMBER 2019

CLICK TO WATCH : ‘FANUC: YOUR BUSINESS DESERVES PERFECTION’

FANUC

control systems, i.e. programmable

To fulfil this demand, numerous

machines which might be capable

companies are rising to the chal-

of milling, punching or otherwise

lenge across automation sectors

manipulating items dependent on

old and new. The world’s largest

the needs of their owner. Indeed,

industrial robot manufacturer is

the company’s name is an initialism

Fanuc. According to Robotics and

of Fuji Automatic Numerical

Automation News, the company

Control. With revenue reaching

has installed some 400,000 of

some $4.79bn in FY17, the com-

its robots in factories worldwide.

pany is headquartered in the small

Originating as part of Japanese

Japanese village of Oshino.

giant Fujitsu, the company became independent in 1972. It is most

EMERSON ELECTRIC

active in the field of numerical

It is, of course, necessary to act with a nz .busi ne ssc h ief. com

35

TECHNOLOGY

intentionality when implementing auto-

past. As part of this, one of the com-

mated solutions, and consequently,

pany’s focuses is on implementing the

the services of automation experts are

Internet of Things (IoT) in industry. Its

often required. Multinational Emerson

Plantweb ecosystem integrates prod-

Electric dedicates one of the two sides

ucts in the areas of production, reliabil-

of its business to providing automation

ity, safety and energy management.

solutions, and in FY17 the company’s

Emerson’s expertise extends across

revenue reached $15.26bn. Providing

a broad swathe of different industries,

automation services to industry,

including automotive, food and bever-

Emerson tailors its offerings to specific

age, oil and gas, packaging and mining.

clients, saying on its website that its expertise moves away from standard

WANDELBOTS

approaches developed in decades

As well as the work of established giants

36

CLICK TO WATCH : ‘EMERSON: AUTOMATION SOLUTIONS’

SEPTEMBER 2019

such as Fanuc and Emerson, the future

in the same way, independent of the

of automation will require the input of

technology stack,” says CEO Christian

newcomers. Wandelbots is a German

Piechnick in TechCrunch.

startup with a focus on what the com-

Though automation, as we envisage

pany calls a ‘human-centered’ approach

it today, has existed since at least the

to robot programming. Having raised

1940s and the advent of numerical

€6mn ($6.73mn) in series A funding,

control, it is clear that we are cur-

Wandelbots hopes to explode and

rently at the beginning of a new era

disrupt the existing system of robot

of automation. With AI, machine learn-

programming, which differs between

ing, drones and other technologies

companies and systems, by introduc-

all driving new developments in auto-

ing demonstration-based machine

mation, manufacturing as we know

teaching. Wearing a sensor filled jacket,

it is being transformed, bringing new

users can perform actions which are

levels of efficiency and entirely new

then replicated by robots, drastically

possibilities to industry.

reducing the time taken and cost of programming. “We are providing a universal language to teach those robots a nz .busi ne ssc h ief. com

37

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PEOPLE

MIR IMRAN 40

Serial entrepreneur, CEO of Rani Therapeutics and inventor of the robotic pill Mir Imran, inventor, founder and CEO of Rani Therapeutics, shares his story and discusses how his latest business is driven by the desire to innovate, create and solve one of the most pressing problems in modern medicine WRITTEN BY

HARRY MENEAR

SEPTEMBER 2019

41

a nz .busi ne ssc h ief. com

PEOPLE

A

s a serial entrepreneur, what would you say are the key qualities of a successful startup?

A successful startup is willing to take risks and fail frequently. Taking big risks, learning from every failure, and making an effort to fully understand every facet of a problem before pursuing a solution are important tenants to help create a culture that embraces innovation.

Choosing the right problems to address, too, is essential. If you are merely iterating 42

on other people’s ideas, you aren’t inventing.

Look at the big unsolved problems. Break them down. Understand them. Find solutions that no one had ever thought possible. I focus on big, unsolved problems and that has led to the creation of a number of disruptive innovations.

There can be big rewards that come from innovations like Rani Therapeutics, but there are also countless risks along the way. I have been fortunate to have had many successes in my career, but I also have had my fair share of failed concepts or lacklustre results. Before I had success with the first Implantable Cardioverter Defibrillator (ICD), I had two failed companies. I never let those failures bring me down; rather I saw them as SEPTEMBER 2019

“ I focus on big, unsolved problems and that has led to the creation of a number of disruptive innovations” — Mir Imran, Inventor, founder, and CEO of Rani Therapeutics

opportunities to learn and evolve. Each experience gave me further clarity, led to deeper insights, and helped inform future decisions. If I had given up after my early failures, life would have turned out very differently for me.

As someone with over 500 patents to their name, which technological development have you been most proud of so far?

I’m driven by identifying unsolved or poorly addressed problems in medicine. Over the past four decades, I’ve a nz .busi ne ssc h ief. com

43

PEOPLE

44 built a number of companies that have

vert biologic injections into pills, I saw

addressed multiple problems, from

that as a juicy problem to solve. The

lockboxes used by real estate agents

main challenge is that the gut hosts

to full-body airport scanners used

enzymes designed to break down

across the country and the world,

proteins. If ingested, biologic drugs

and radically improved treatments

are degraded before they can be

for chronic pain.

absorbed. That’s why you haven’t

While I’m proud of all my inventions,

seen oral insulin or oral Humira yet.

today I’m on a mission to solve one of

At Rani Therapeutics, we think we

the biggest challenges in medicine:

have solved the riddle with the

replacing painful injections with a pill

RaniPill™ capsule.

to treat hundreds of millions of patients with chronic disease. When I learned

Could you tell me a little about Rani

that pharma companies have tried and

Therapeutics and your new robotic

failed for more than 50 years to con-

pill? What advantages does the pill

SEPTEMBER 2019

CLICK TO WATCH : ‘RANI THERAPEUTICS’ 45 have over traditional subcutaneous

patient to be an ordinary pill, but inside

injections?

is a “mini auto-injector” that delivers

There are millions of people around the

the drug directly into the intestinal wall.

world living with chronic conditions that

Our robotic indigestible capsule has a

can only be treated with painful daily

special coating which gets it through

self-injections. Yet even when such

the acidic environment of the stom-

medicines are readily available, patient

ach. When it reaches the intestinal

compliance is very low. Patients don’t

wall, the RaniPill™ then transforms,

want to inject themselves and avoid the

revealing the mechanism inside. The

treatment even if it affects their health.

RaniPill™ aligns itself to inject a drug

Achieving oral delivery of biologics is

into the intestinal wall, where it is

considered the holy grail of drug deliv-

picked up quickly and circulated in the

ery, and we think we have come up with

bloodstream. The patient doesn’t feel

the solution with the RaniPill™ capsule.

anything because the intestines have

The RaniPill™ capsule appears to the

no sharp pain receptors. a nz .busi ne ssc h ief. com

PEOPLE

While other organisations have followed our lead and are now pursuing similar concepts, Rani’s early start in the pursuit of a pill to replace painful injections has secured our position as a pioneer of robotic pills. We have conducted more than 100 preclinical studies proving that our technology works – and delivers the same amount of drug as a subcutaneous injection.

We have also begun testing in humans — specifically testing the safety and tolerability of the RaniPill™ capsule without the drug. Those studies were

46

successful, demonstrating that the RaniPill™ capsule deployed with no feeling or perception by the subjects and the remnants passed out of the body. We are moving towards human testing with the RaniPill™ capsule loaded with a drug (Octreotide, a drug used for the treatment of acromegaly) this year.

Given your experience as a leader of business units and enterprises, how do you ensure that you attract, utilise and retain top talent?

It is our intent to attract and retain innovative thinkers to help us build SEPTEMBER 2019

the future of biologic drug deliv-

talent regardless of a person’s age,

ery, and we believe our culture has

gender, or ethnicity.

helped us tremendously in that regard. I’m proud that today Rani’s

A criticism that’s often levelled at

workforce is more than 50% women,

pharmaceutical and tech companies

and that 20% are over 50 years old.

is that they’re increasingly driven by

Our employees are ethnically diverse

the business case as opposed to the

as well, drawn from more than 10

desire to innovate and improve peo-

countries. For me, building a well-

ple’s lives. How do you ensure that

rounded, holistically representative

Rani Therapeutics doesn’t lose sight

workforce means finding the best

of the goal of helping humanity?

E XE CU T I VE PRO FI LE 47

Mir Imran Mir Imran is the Chairman and CEO of Rani Therapeutics, an exciting company that has developed a unique approach for the oral delivery of large drug molecules including peptides, proteins, and antibodies. Imran is also the Chairman & CEO of InCube Labs, a life sciences R&D lab focused on developing and commercialising breakthrough medical innovations. Rani spun out of InCube in 2012. After attending medical school, Imran began his life as a healthcare entrepreneur in the late 1970s and has founded more than 20 life sciences companies since those early days, more than half of which have been acquired.

Imran’s passion is creating novel technologies that have the potential to positively impact the lives of millions of patients and has become one of the leading inventors and entrepreneurs in the field. Imran holds more than 500 issued and pending patents and is perhaps most wellknown for his pioneering contributions to the f irst FDA-approved Automatic Implantable Cardioverter Defibrillator (ICD). a nz .busi ne ssc h ief. com

PEOPLE

“ We have a truly multidisciplinary team and that plays a critical role in understanding and framing problems, and ultimately devising solutions” — Mir Imran, Inventor, founder, and CEO of Rani Therapeutics 48

We believe the best business case —

reveal itself. Earlier in my career, I was

a sustainable business case – can only

quick to try to “solve” the problems.

be achieved when your products truly

I would spend time dreaming up the

improve people’s lives. Our single-

solution to a problem that I did not fully

minded focus is always trying to under-

understand. I soon learned that you

stand problems, faced by patients and

must take the time to understand and

to try to alleviate some of those prob-

appreciate the problem, look at it from

lems through innovation.

all angles, listen to other opinions, and

When it comes to building innova-

see what has been done before. If you

tive products, it is critical to start with

pursue solutions too quickly without

understanding the problem and do this

that complete understanding of the

from all facets. Once you truly under-

problem, you might miss the opportu-

stand the problem, the solution will

nity for a breakthrough.

SEPTEMBER 2019

What’s on the horizon for you, and for Rani Therapeutics? Where do you see your roadmap taking you in 2020 and beyond?

It’s an exciting time for Rani Therapeutics.

We’ve done hundreds of preclinical studies by delivering more than 1,000 capsules. We’ve tested nine drugs, including insulin, GLP-1 [for diabetes] and Humira [for arthritis] and we’ve demonstrated that the RaniPill™ capsule delivery is equivalent to subcutaneous injection. Later this year, we’ll be testing a drug called Octreotide which treats patients suffering from acromegaly, a condition resulting from the body’s pituitary gland producing an In the case of Rani, where we are

excessive amount of growth hormone.

working to improve the lives of millions

Next year, we’ll be testing several other

of people, I had to look at all of the ways

drugs in Phase 1 studies. We are getting

that previous approaches have failed

closer to bringing the RaniPill™ cap-

in order to come up with a radically dif-

sule to patients and improving the lives

ferent way to solve the problem. Rather

of millions. It’s an enormous challenge

than try to change the drug to make it

that keeps us focused and motivated

viable orally, which had been tried many

every day.

times before by other companies, I decided we needed to take a very different approach and instead change how the drug is delivered. Out of that concept, the RaniPill™ capsule was born. a nz .busi ne ssc h ief. com

49

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

50

SEPTEMBER 2019

Chicago, US

EXCITING SUSTAINABLE CITY INNOVATIONS AROUND THE WORLD Marga Hoek is a global thought-leader on sustainable business, international speaker and the author of The Trillion Dollar Shift, a new book revealing the business opportunities provided by the UN’s Sustainable Development Goals WRITTEN BY

MARGA HOEK

a nz .busi ne ssc h ief. com

51

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

52

C

ities are at the heart of national

won in cities. Cities play a major role in

and global growth. In an

achieving Sustainable Development

increasingly urbanised world,

Goals (SDGs). They clearly play a

cities are both the source and the

role in SDG 11 – sustainable cities and

solution of many global problems.

communities – but cities also impact

Not only do urban areas account for

many other SDGs.

over half of the world’s population,

We have a long way to go and little

but they also generate around 80% of

time: cities are becoming more sus-

global Gross Domestic Product (GDP).

tainable yet to reach our goals, cities

Cities, however, are confronted and

much embrace more and also more

challenged to become inclusive, safe,

radical innovations. Those radical

sustainable and: smart. And because

innovations mean moving away

of its impact, one could say that the

from the conventional way of thinking

battle for sustainability will be lost or

and designing.

SEPTEMBER 2019

Cambridge, US

53

Zwolle. the Netherlands

ZWOLLE, THE NETHERLANDS Across the globe, we can encounter many inspiring examples of how to redesign our cities, simply by taking this other perspective. Let’s start in the country I was born, the Netherlands, and zoom into the small city of Zwolle.

Here, for instance, the plastic road was invented and created. A new modular bicycle path made from recycled plastics. It matches up to the equivalent of 218,000 plastic cups. So you cycle on

“ CITIES ARE BECOMING MORE SUSTAINABLE YET TO REACH OUR GOALS, CITIES MUST EMBRACE MORE, AND ALSO MORE RADICAL, INNOVATIONS” — Marga Hoek, Non Executive Director and author of The Trillion Dollar Shift

waste! The road has higher longevity than conventional surfaces, can witha nz .busi ne ssc h ief. com

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

stand extreme temperatures and it can

ing waterless sanitation solution for

be applied to parking lots too. No virgin

those who lack access to conventional

materials are needed and we have lots

toilets. With a simple subscription to

of (plastic) waste we need to dispose of.

a pick-up plan, households receive a waterless, resource-separating toilet

LIMA, PERU

combined with a weekly service that

Hygiene and water are huge challenges

collects waste directly from the home.

in low-income cities, mostly in develop-

Imagine the impact on health in poor

ing countries. So let us move to Lima,

slums where people suffer tremen-

the capital of Peru. An interesting in-

dously from diseases due to lack of

novation, X-runner, brings an appeal-

water, sanitation and hygiene.

54

Mexico’s Torre de Especialidades Medicas SEPTEMBER 2019

CLICK TO WATCH : ‘CAMBRIDGE LEADS THE CHARGE FOR CLEAN ENERGY IN MASSACHUSETTS’ 55

MEXICO CITY, MEXICO Smog and air pollution is a huge problem in many cities like Mexico. The Torre de las Especialidades found a solution by creating a ‘smog-eating’ front for its hospital, absorbing the pollution from the air. The new hospital building in Mexico City is designed to transform air pollutants into harmless chemicals. The building has a facade made up of a new type of tile called “proSolve370e” which, according to its

“ DESIGNED TO TRANSFORM AIR POLLUTANTS INTO HARMLESS CHEMICALS” — Marga Hoek, Non Executive Director and author of The Trillion Dollar Shift

inventor Elegant Embellishments, can neutralise the chemicals produced by 8,750 cars every day. a nz .busi ne ssc h ief. com

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

“ MODULAR SENSOR BOXES THAT WILL BE INSTALLED AROUND CHICAGO TO COLLECT REAL-TIME DATA ON THE CITY’S ENVIRONMENT” — Marga Hoek, Non Executive Director and author of The Trillion Dollar Shift

CAMBRIDGE, US 56

The city of the future will combine sustainable initiatives with the use of ICT and advanced technologies. Around the 1990s, as the digital revolution came up to speed, it was often assumed digitalisation would mean the death of cities but the opposite is the case. Smart, intelligent cities, that have sustainability at the heart of development, are considered to be a great place to live. Digital innovations can thrive, although they still have too little scale around the world. A great example is to be found in Cambridge, Massachusetts, which we can describe as an internet of pipes. A team of MIT researchers have developed a system SEPTEMBER 2019

Chicago’s Cloud Gate

to collect and analyse biochemical information from sewage water, which could be thought of as a ‘smart sewage platform’. The project is called Underworlds and it is being tested at this time.

CHICAGO, US The line of thinking about smart, sustainable cities is to use everything there is in a city in a smart and multifunctional way. This also implies to ‘simples poles’. The Array of Things (AoT) is an urban sensing project, a network of interactive, modular sensor boxes that will be installed around Chicago to collect real-time data on the city’s environment, infrastructure, and activity for research and public use. AoT will be measuring factors that impact liveability in Chicago such as climate, air quality and noise.

Everywhere around the world we can find pertinent examples like these.

Since the world by now has become a global village; we can share all these examples and the knowledge behind them to transform cities into the best sustainable, smart cities they can be.

a nz .busi ne ssc h ief. com

57

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CITY FOCUS

60

PERT City Focus

SEPTEMBER 2019

TH

61

Business Chief takes a look at the city of Perth to understand the mineral wealth that established the city and the tourism and education industries that continue to sustain it WRITTEN BY

WILLIAM SMITH a nz .busi ne ssc h ief. com

CITY FOCUS | PERTH

L

ying on the western coast of Australia facing the Indian Ocean, Perth is the capital of the state of Western Aus-

tralia. With a population of 2.06mn people in 2018, according to the Australian Bureau of Statistics, it is Australia’s fourth largest city and represents 79.4% of Western Australia’s total population. According to SGS Economic

& Planning, the city’s GDP was $150.3bn in 2017-18, representing 8.3% of national GDP and 58.4% of Western Australia’s. Although founded in 1829, the area was previously 62

inhabited by Indigenous Australians for many thousands of years. The settlement became a city in 1856, but remained small until the discovery of gold and an associated gold rush in the late 19th century.

Owing to Perth’s distance from other major Australian cities which are clustered to the east of the country, the city and Western Australia at large have historically entertained notions of independence from the rest of the country, including a successful 1933 referendum that was later denied. With its geographical isolation, the city has become a popular destination for domestic tourists hoping to see a new side of Australia, as well as international visitors attracted by the city’s wealth of beaches and parks, thrivSEPTEMBER 2019

‘Despite its geographical isolation, Perth has comprehensively taken advantage of its position as a gateway to Western Australia’

63

ing culture and unique sights such as the quokka on Rottnest Island.

WESFARMERS Beginning life as a farming co-operative in 1914, Wesfarmers is now a conglomerate with a focus on retail, and one of the largest Australian companies. The transformation took place in 1984, when the company went public and listed on the ASX under the symbol “WES”. Owning the likes of Target Australia, Officeworks and Buna nz .busi ne ssc h ief. com

CITY FOCUS | PERTH

nings Warehouse, the conglomerate

South African and Australian opera-

operates across Australia and New

tions are based. With revenue reported

Zealand. With 2018 revenue reported

as US$7.5bn in 2018, the company

as AU$66.88bn, the company is head-

produces a number of products. Its

quartered in the Central Business

Australian interests include bauxite,

District of the city.

alumina, coal, silver, lead and zinc facilities. South32 is listed on the ASX, LSE

SOUTH32

and JSE

Mining and metals company South32

under the symbol “S32”.

was created out of BHP in 2015.

64

Located in the Central Business Dis-

HANCOCK PROSPECTING

trict, the company has locations in

Hancock Prospecting is a private

Australia, South Africa, Mozambique

mining business, with interests in Aus-

and Colombia. Its name references the

tralia and the UK. Its executive chair-

line of latitude along which its major

man is Gina Rinehart, one of the rich-

‘Ever since the gold rushes of the 19th century, successive mining discoveries have been made in the region’

SEPTEMBER 2019

CLICK TO WATCH : ‘WE ARE SOUTH32’ 65 est women in Australia and the world.

ore deposit was followed by the start

The company was founded by Rine-

of nickel mining in the 1960s, with the

hart’s father Lang Hancock, who in

trade in minerals facilitated by Perth’s

1952 discovered the world’s largest

Fremantle Harbour. The port was

iron ore deposit in the Pilbara region,

opened to commercial shipping at the

on which the company’s success has

end of the 19th century thanks to the

been

work of engineer Charles Yelverton

largely based. According to The West

O’Connor, and along with the gold rush,

Australian, the company had a revenue

turned the city into a centre

of AU$6bn (US$4.19bn) in 2018.

of commerce. Though today mining

Perth in part owes its wealth to the

products tend to be embarked else-

mining industry. Ever since the gold

where, Fremantle Harbour remains

rushes of the 19th century, successive

the largest and busiest general

mining discoveries have been made in

cargo port in Western Australia.

the region. The aforementioned iron

Perth is also known for educaa nz .busi ne ssc h ief. com

CITY FOCUS | PERTH

66

S TAT I S T I C S

• The city features five universities • Founded in 1829, the settlement became a city in 1856 • The city’s GDP was $150.3bn in 2017-18, representing 8.3% of national GDP and 58.4% of Western Australia’s

SEPTEMBER 2019

tion, with the city featuring no less than five universities located within the city’s environs: The University of Notre Dame Australia, The University of Western Australia, Curtin University, Murdoch University and Edith Cowan University. The University of Western Australia is the oldest in the city, having been established in 1911. From its founding until 1973, it was Western Australia’s only university, and conse quently had a large effect on the city, with its alumni making up seven of the state’s last eight premiers.

Upcoming events in the city include Kings Park near the CBD, as well as the Wanneroo Business Expo 2019 on 13 September in the northern suburbs of Wanneroo.

Despite its geographical isolation, Perth has comprehensively taken advantage of its position as a gateway to Western Australia. Built on the mineral wealth of the region, the city has pivoted to a modern, service economy and in the process driven up its prominence and liveability, establishing its reputation as a city of the future.

a nz .busi ne ssc h ief. com

67

T O P 10

68

SEPTEMBER 2019

Sustainable companies inAsia Business Chief counts down the top 10 most sustainable companies in Asia, according to Corporate Knights‘ ranking of companies which generate more than $1bn in annual revenue WRITTEN BY

WILLIAM SMITH

a nz .busi ne ssc h ief. com

69

T O P 10

70

10

Advantech Co., Ltd. TAIWAN

Taiwan’s Advantech is a computer hardware manufacturing company.

According to Owler, the company has a revenue of $1.6bn. Its sustainability strategy focuses on the provenance of materials, with the company ensuring its supply chains are focused on “green design, green manufacturing and green products”. In line with this, the company shuns toxic substances and designs for minimum greenhouse gas emissions. It achieved a score of 53.45% from Corporate Knights, placing the company at 86th position worldwide.

SEPTEMBER 2019

71

09

Samsung SDI Co., Ltd. SOUTH KOREA

The battery manufacturing division of Korea’s Samsung, Samsung SDI creates products such as lithium-ion batteries for laptops and mobile phones, as well as residential energy storage systems, car batteries and more. 83rd on Corporate Knights’ list with a score of 54.23%, the company published its 16th sustainability report in 2018.

Connected with the battery making process, the company’s sustainability goals involve the reduction of waste in the process of design, manufacture and supply of products, as well as an increase in the rate of reuse.

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T O P 10

73

08

Yokogawa Electric Corp.

JAPAN

Yokogawa Electric was founded in 1915. Based in Tokyo, the electrical engineering company operates worldwide via its many subsidiaries. Providing the hardware and software for control systems, it achieved a revenue of $3.7bn in the 2017 financial year.

The company’s sustainability strategy balances the creation of economic value for customers with contribution to society. Its concept of a circular economy meets these two targets, with efficiency driving reduced costs for customers and better outcomes for the environment.

a nz .busi ne ssc h ief. com

T O P 10

74

07

Takeda Pharmaceutical Co. JAPAN

The largest pharmaceutical company in Asia, Takeda Pharmaceutical is based in Tokyo, Japan, with a further base in Osaka. The company was ranked 78th globally, achieving a score of 58.05%. One of its better-known products is the diabetes medicine Actos. Christophe Weber, President and CEO, has described the company as a “patientcentric, global, values-based R&D-driven biopharmaceutical company and responsible global corporate citizen.�

SEPTEMBER 2019

75

06

Eisai Co., Ltd. JAPAN

Eisai is a pharmaceutical company based in Tokyo, Japan. Some of its better-known drugs include Donepezil, trade name Aricept, and Rabeprazole, trade name Pariet. The company reported its 2017 revenue of $5.54bn. Describing itself as a “human healthcare” company, its corporate philosophy focuses on human impact, informing its pursuit of the UN’s Sustainable Development Goals (SDGs). Examples include the development of innovative medicines for the 3rd SDG, Good Health and Well-Being, and initiatives to increase recycling and waste in line with the 12th SDG, Responsible Consumption and Production.

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T O P 10

77

05

CapitaLand Limited SINGAPORE

Singaporean real estate company CapitaLand Limited came 33rd worldwide on Corporate Knights’ list with a score of 69.92%.

According to the company, it possesses 1,084 properties across 32 countries and 215 cities, with those properties being malls, offices, houses and more. It reported its 2018 revenue as $4.13bn. The company describes its sustainability strategy as being based on the credo of “Building People. Building Communities.” and it is a signatory to the United Nations Global Compact.

a nz .busi ne ssc h ief. com

T O P 10

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04

LG Electronics Inc. SOUTH KOREA

South Korea’s LG Electronics is part of the wider LG corporation.

It gave its 2018 revenue as $52.22bn. The company was founded in 1958 as GoldStar, coming into its current name in 1995. Its products range from televisions and refrigerators to wearables and smartphones. In 2019 it released its 13th sustainability report.

30th worldwide on Corporate Knights’ ranking, it achieved a score of 71.04%.

SEPTEMBER 2019

79

03

City Developments Ltd. SINGAPORE

Real Estate company City Developments Limited is based in Singapore.

Founded in 1963, it has a portfolio across private residences, offices, hotels and more. Hotel chain Millennium & Copthorne Hotels is one of its more public-facing subsidiaries. The company says it has recognised the importance of making sustainability central to its business since 1995, incorporating green innovations and eco-friendly initiatives into its properties. It has established Environmental, Social and Governance (ESG) goals that it targets as part of its CDL Future Value 2030 Sustainability blueprint.

a nz .busi ne ssc h ief. com

T O P 10

02

Taiwan Semiconductor TAWAIN

Taiwan Semiconductor is the world’s largest dedicated 80

semiconductor foundry. Corporate Knights gave it a sustainability score of 77.71%. Its revenue, as of 2017, was $32.89bn and it employed 46,968 people. It says that it pioneered the “pure play” business model for semiconductor foundries, choosing not to design, manufacture or market semiconductors under its own name so that it never competes directly with its customers. Sustainability focuses include green manufacturing and the management of energy, waste and air pollution.

SEPTEMBER 2019

81

a nz .busi ne ssc h ief. com

T O P 10

01

Shinhan Financial Group Co. SOUTH KOREA

South Korean Shinhan Financial Group oversees both 82

Shinhan Bank and the smaller Jeju Bank, and achieved a score of 77.75%, making it Asia’s greenest company.

Headquartered in Seoul, it is descended from Korea’s oldest bank. The company emphasises the role of “compassionate finance” in the way it does business, with CEO Cho Yong-byoung saying, “going forward, all Shinhan members will practice ‘compassionate finance for the future’ to realize the Group’s mission of creating a virtuous cycle of shared prosperity.”

SEPTEMBER 2019

83

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86

Melbourne Water is leading on safety and social procurement to keep the water flowing WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

TOM VENTURO

SEPTEMBER 2019

87

a nz .busi ne ssc h ief. com

M E L B O U R N E W AT E R

Melbourne Water’s commitment to encouraging best practice for safety across all its assets, allied with a strong commitment to social procurement, is helping the Victorian governmentowned statutory authority secure sustainable communities for future generations 88

M

elbourne Water manages $15bn worth of assets that span the entire water cycle, from waterways and wetlands, drainage

and flood management to water supply and sewerage assets – a unique model compared to most other major cities across Australia. It relies on strong collaboration with Melbourne Water’s retail water sector (for water and sewerage services) and 38 councils (for stormwater management).

Melbourne Water looks after all major infrastructure, dams, pipelines and treatment plants on the supply side, and also manages the major treatment works on the sewerage side and the sewerage network down to approximately 300mm pipes. “We then interface with a number of retailers across the Melbourne metropolitan region,” explains Eamonn Kelly, General Manager, Major Program Delivery at Melbourne Water. “South East Water, City West SEPTEMBER 2019

Western Treatment Plant, Werribee, Victoria

$1.9bn Approximate revenue (AUS)

1891

Founded as Melbourne Metropolitan Board of Works

1,200

Nutrient Removal Plant project, Western Treatment Plant, Werribee, Victoria

Approximate number of employees a nz .busi ne ssc h ief. com

89

CLICK TO WATCH : ‘MELBOURNE WATER’S STRATEGIC DIRECTION’ 91 Water, Yarra Valley Water and Western

paramount. But, in 2015 – when Kelly

Water deal with all the individual,

returned – the business was struggling

residential, and commercial customers.”

to deliver its forecast capital works

Melbourne Water also acts as the

programme. More importantly two of

custodian of protected catchments

the biggest tier-one contractors in the

of natural parkland waterways.

country, CPB Contractors and John

“We manage the closed catchments

Holland Group (JHG), were running

that supply the bulk of Melbourne’s

the highest total recordable injury

drinking water,” confirms Kelly. In total,

frequency rates in their state-wide

we are responsible for the health of

business units under the Melbourne

around 25,000km of waterways

Water Framework.

across the greater Melbourne Region,” confirms Kelly.

Across all of its operations Melbourne Water’s commitment to safety is

Melbourne Water’s response was swift and decisive. Kelly spoke with senior leaders at CPB and JHG about what was driving these behaviours and a nz .busi ne ssc h ief. com

Taking care of every drop.

Communities depend on safe, easy access to clean water, from breakfast time to bath time, industrial use to irrigation, the efficient capture, storage and management of water helps keep life flowing.

Since 2013, the John Holland/KBR joint venture has worked with Melbourne Water to deliver its capital works program.

Working together and thinking differently is transforming our approach to safety, wellbeing and social procurement to improve the programs outcomes.

We are market leaders in providing solutions in water infrastructure that address the future needs of communities and our customers.

Our strong track record of delivering critical water infrastructure is a testament to our commitment to transforming lives.

johnholland.com.au kbr.com

how to fix the problem. “We weren’t just pointing a finger at the contractor to improve safety performance,” explains Kelly. “We wanted feedback to learn what it was about our framework that was causing this.” A number of interventions were designed to collectively fix a number of issues but the main problem was that the commercial model in place was driving the tier one contractors towards a heavily subcontracted model.

“We were pushing a lot of risk on the

“ We push each other to achieve zero harm and produce quality projects second to none. Our team is accustomed to the diversity that Melbourne Water projects bring along with the collaborative and inclusive partnership we all feel is a recipe for success” — David Harry, Director, Delcon Civil

subcontractors, and their way of managing that was passing that risk on

93

to their subcontractors,” he explains.

“We were seeing a highly transient workforce across all of our projects,

joint venture and Downer/Abergeldie/

with three or four levels of subcontrac-

Stantec (this Safety Focused Perfor-

tors on some of our work sites.

mance joint venture also includes

Basically, you never knew what you

Downer) to deliver the bulk of the

were going to get on site in terms of

framework. “We also switched to a self-

people turning up with the right

performed model on the lower end of

behaviour and mindset in such a

our capital delivery framework for

high-risk environment.”

projects below $2mn,” says Kelly.

Melbourne Water set about changing

“We targeted smaller contractors with

that, which led to retendering the

the means to self-perform to come

framework in 2017 with a view to reduc-

together. AquaMetro Services started

ing subcontracting levels to nominated

off delivering around $20mn in its first

like-minded companies while keeping

year. Last year, it delivered $33mn of

trusted consortia like the JHG-KBR

total work for us. In the first two years a nz .busi ne ssc h ief. com

M E L B O U R N E W AT E R

“ We switched to a self-performed model on the lower end of our capital delivery framework. In the first two years, we didn’t have one recordable injury” 94

— Eamonn Kelly, General Manager, Major Program Delivery, Melbourne Water

SEPTEMBER 2019

we didn’t have one recordable injury, predominantly due to the fact they started small, handpicking the people that they would use to self-perform on their jobs. Get good people on your work sites, build a level of trust and capability in that safety performance, then safety should look after itself.

We’re seeing that, even in our major framework. Our safety performance indicators came down from levels up around 15; now they’re at two to three.

There’s still room to improve, but we’re in a better place than three years ago.”

Mal Shepherd, General Manager Water Services at John Holland adds. “We

CLICK TO WATCH : ‘MELBOURNE WATER GENERATIVE SAFETY CULTURE EVENT’ 95 started the generative safety culture

Water. “We role-played what a good

journey with Melbourne Water with the

pre-start meeting should look like,”

purpose of together moving the

adds Kelly. “We gave staff a line in the

dialogue toward a more mature

sand around our expectations, and

approach to how work is planned and

what could happen if they’re not met.

undertaken by the workforce. But,

It was a very powerful tool for our

more importantly, to create an environ-

supervisors on-site so we’re keen

ment of trust where we could learn

to continue that process with our

more deeply from our mistakes.”

construction workers.”

Recent interventions to improve

Melbourne Water is planning further

safety protocols have included staging

initiatives like these to promote a truly

a mock incident, followed up with court

generative safety culture rather than

scenarios featuring professional police

simply focus on the stats: “We can

prosecutors, to further educate staff

learn from others, they can learn from

on what’s expected at Melbourne

us. We need to continue the conversaa nz .busi ne ssc h ief. com

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tion, that’s how I think we can get better

feedback is a gift – positive or negative,

as an industry in this safety space, with

it’s a learning opportunity.”

a collaborative approach,” he says,

Delcon Civil (now under the JHG

noting that pushing towards these

consortia) has worked with Melbourne

safety goals at Melbourne Water has

Water for the past 15 years, sharing the

not been without its challenges. “We’ve

same expectations around safety.

had to develop trust around the safety

“We push each other to achieve zero

leadership table to allow open and

harm and produce quality projects

frank two-way feedback. Contractors

second to none,” says Director David

and consultants are always happy to

Harry. “Our team is accustomed to

receive feedback from the client, but

the diversity that Melbourne Water

don’t like biting the hand that feeds

projects bring along with the collabora-

fearing the client could take their

tive and inclusive partnership we all

feedback negatively. One of the

feel is a recipe for success.” Quality

phrases we coined was that all

Site Welding work under the Safety

E XE CU T I VE PRO FI LE

Eamonn Kelly A former General Manager of the Infrastructure Group at Melbourne Water, where he previously worked for seven years, Kelly left to pursue challenging infrastructure roles with Connex Melbourne, Black & Veatch and Thiess Services where he was General Manager for Water. Returning to Melbourne Water in 2015, his experience bringing people together to build high performing teams has collaboration at its heart: “I focus on trust, respect, and the ability to give frank and open feedback. If you can do that, you’ll run a successful project.”

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M E L B O U R N E W AT E R

Focused Performance consortia and

and building capacity in the workforce

its General Manager Bruce Kerr

to be agile, more risk conscious and

echoes that positivity: “I’m not aware

adapt work plans to suit change in the

of many clients that constantly drive

work environment.”

communication in the safety space like Melbourne Water. It feels inclusive,

procurement, Melbourne Water is also

they want to work with all of their

facilitating a number of initiatives

contractors so everyone can buy into

aligned with the Victorian Govern-

the culture.” This culture was recog-

ments Local Jobs First policy. One

nised with a WorkSafe award for safety

such initiative was started within JHG.

leadership in 2018, and has resulted

The Pathways Program began in

in Melbourne Water being shortlisted

response to Victoria’s infrastructure

once again for 2019.

boom by exploring different avenues

Kelly believes the key to engaging 98

Through its commitment to social

the workforce lies in developing

for the recruitment of talent. “Migrant professionals were a relatively

relationships, and by employing authentic safety leadership in every site interaction. “You can’t do that at one forum with 300 people in a room, you have to get out and about. It’s not about documentation and apportioning blame. We’re always getting new people on site so you can never take your eye off the ball. You have to talk to people, be visible on site and be seen to be taking their safety seriously.”

Shepherd adds: “We want to make working safely a habit across the water industry. This requires bridging the gap in our thinking away from more rules and tools, to decluttering our approach SEPTEMBER 2019

Niru Gosavi, Melbourne Water’s Program Delivery Director (center) is championing the Pathways Program and is pictured here with participants Evelyn Mugisha and Chris Daramola

CLICK TO WATCH : ‘MELBOURNE WATER PATHWAYS PROGRAM’ 99 untapped resource,” recalls Kelly. “JHG formed a partnership with Jesuit Social

“ Social responsibility is integrated into our business model.

To us it means fulfilling our duties and responsibility towards society, especially the Traditional Owners of the Country Australia” — Marcus Wade, Director, Aqua Metro Services

Services, a not-for-profit social services organisation supporting the migrant workforce entering Australia.

Jesuit Social Services used its network to advertise for project and construction engineers, leading to JHG taking on 21 new team members. Glenn Crisp, Regional Construction Manager for JHG says: “The John Holland Pathways Program was one of the most rewarding experiences of my professional life.

We know there are benefits in a diverse workplace. It was certainly a positive a nz .busi ne ssc h ief. com

Leadership Team

Multi-Disciplined, Design and Construct Water Industry Specialists With over 100 years of combined experience, Aqua Metro Services have a significant knowledge bank which enables seamless delivery of our projects through to client handover.

Design

Greenvale Dam Remediation

Holistic Approach with “Entire Life Cycle of Asset” in mind –we understand the need to fully consider the whole life cycle issues associated with a project in the development of the design.

Construction Civil/Electrical/Mechanical – The AMS Construction team comprises of three dedicated companies with no “overlap” of service offerings. Each individual company has a vast and experienced resource pool. We self-perform a majority of works thereby eliminating “margin upon margin” for our clients.

Innovation ETP Carpark

AMS is committed to innovation and value addition initiatives. The support of our esteemed client Melbourne Water Corporation, has enabled us to introduce to the Australian Water Industry two unique products – Geokrete – A fully structural and corrosion resistant protective lining for Water and Wastewater assets and the Cosmo AquaValve which enables the installation of valves into pipelines without interrupting supply, size up to 2600mm.

Our Unique Offering Dights Fall Fishway

11 Flowmeters

We utilise our in-house Design, Civil and Mechanical/Electrical Construction teams to provide turnkey D&C solutions for the Australian Water Industry. We work to establish long term relationships with our clients based on outstanding safety records, high performing teams, exceptional stakeholder management, strong social responsibility and an open and honest leadership that promotes safety, trust and transparency.

Melbourne Water: technology Melbourne Water is eager to embrace new solutions to maintain and enhance its infrastructure. Kelly concedes that, like most major infrastructure organisations, there are still challenges to overcome in the adoption of technology and process to support a mature and progressive adoption of digital engineering. “We’re catching up now with 3D design and VR for design reviews,” says Kelly.

“We’re focused on leveraging automation and IoT for monitoring, 3D visual representation of our assets and automation, which is much easier now with the use of local monitors, drones and VR. Utilising VR for design reviews is now common practice” he adds. In the construction or built asset space, the corporation is aiming to

implement BIM (Building Information Modelling) “throughout the asset lifecycle” on future projects to improve the efficiency of Melbourne Water’s assets.

Meanwhile Melbourne Water is also making use of real-time controls across its drainage network to address potential blockages. “We are the custodians of the waterways so we have to look after both the quality of water and how it’s drained to minimise the impact of f lood” adds Kelly. When heavy rainfall occurs “we have to respond quickly, so we’re utilising IoT devices with the ability to perform real-time monitoring of blockages of our drainage network to enable us to respond quickly to minimise any potential impact on our customers.”

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DELIVERING EXCELLENCE At Delcon Civil we strive to deliver a culture of construction excellence which is underpinned by our focus on safety and quality. Delcon Civil understands the challenges, demands, dynamics and the controls required for delivering diverse infrastructure projects often in complex operating environments.

LEARN MORE

(03) 9770 8300

info@delconcivil.com.au

(03) 9770 8302

www.delconcivil.com.au

M E L B O U R N E W AT E R

104 experience for the candidates but the

“ When you build a passion in people that makes them want to come to work, and you look after their wellbeing, they will repay you in spades and your projects will be all the better for it” — Eamonn Kelly, General Manager, Major Program Delivery, Melbourne Water

energy that these people brought to the workplace was more than I expected. We ended up with some very capable and competent engineers that before this were unable to get an opportunity in the workplace”. Kelly adds: “We’ve just kicked off our first cohort of eight Pathways participants.

Some of them had been applying for jobs as civil engineers, for over three years, and never got to interview. The fact they were still applying shows a great level of resilience and tenacity.

The energy and passion they now bring into the business is just incredible.”

SEPTEMBER 2019

ment to bring young indigenous graduates through the system, and – as part of our long-term initiative – hopefully put them through college to give them a future in their chosen discipline within the construction industry, whether that’s civil, electrical or mechanical.”

AquaMetro’s Director, Marcus Wade believes that every organisation, regardless of scope, has the power to make a difference to the world around it. “Social responsibility is integrated

Melbourne Water Pathways Program participants

into our business model,” he says.

“To us it means fulfilling our duties and responsibility towards society especially

Another progressive social procure-

the Traditional Owners Of the Country

ment initiative is focused on lifting the

Australia. We are deeply invested in the

level of indigenous participation within

financial success and economic

the construction industry. “Due to the

independence of Indigenous Australians.”

pressures of recent history we just

Melbourne Water has incorporated

don’t see enough indigenous workers

a number of social procurement KPIs

in the mainstream workforce,” notes

into its new framework agreements.

Kelly. “We’re trying to promote new

“the more entities that are actually

pathways by supporting AquaMetro

driving in the same direction, the more

Services with the creation of a 100%

successful we’re going to be,” says

indigenous subcontractor. We will

Kelly. “Our contractors realise they

assist with schooling and training to

need to contribute also. It’s proven now

enhance their capabilities so they can

that the more diverse your workforce,

start their own business and operate

the more successful you’re going to be

as an independent contractor. This will

and the more we reflect the make-up

provide a safer, more trusting environ-

of our communities, the more we can a nz .busi ne ssc h ief. com

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M E L B O U R N E W AT E R

John Holland Group & KBR Promoting Safety & Diversity

106

John Holland Group ( JHG) is among Australia’s leading contractors and plays a key role in helping Melbourne Water deliver an ambitious capital works program. Mal Shepherd, JHG’s General Manager, Water Services praises the efforts made by Melbourne Water to promote a positive safety culture where the workforce is inspired to take ownership of work plan solutions: “We want to make working safely a habit, not only for John Holland but across the water industry. This requires bridging the gap in our thinking away from more rules and tools, to building capacity in

connect with them.”

Looking to the future, the JHG-KBR

the workforce to be agile, more risk conscious and adapt work plans to suit change in the work environment.”

Addressing the need for diversity in the workforce, Glenn Crisp, JHG’s Regional Construction Manager in Victoria, cites the JHG Pathways Program as among the most rewarding experiences in his professional life: “The energy these people brought to site was more than I expected. We ended up with some very capable and competent engineers that before this were unable to get an opportunity in the workplace.”

JHG’s joint venture with KBR has

highly collaborative model within a competitive framework,” explains Kelly.

joint venture and the Safety Focused

“Therefore, in the safety and social

Performance consortia will compete

procurement spaces, you get both

for the bulk of Melbourne Water’s

consortia working together and

capital works program (approximately

sharing ideas because it helps them

$200m/annum). “The model’s interest-

attain their KPIs with us. That’s what

ing because it’s not an alliance but a

we’ve nurtured with them, and they

SEPTEMBER 2019

there’s a lot of collaboration that works across and underpins that.”

Kelly is proud of the initiative which has fostered a high level of trust within thrived with Melbourne Water’s long-term approach, bringing value to customers via a programmatic mode of delivery. “The benefit is realised through continuous improvement, standardisation, consistent development of people, and the supply chain, to deliver innovative solutions,” explains Wayne Nolan, KBR’s Vice President, Infrastructure Services, Australia.

“We began providing services to Melbourne Water in 2013 and over this time formed strong and positive relationships with Eamonn Kelly and his team. We look forward to continuing to safely deliver a high standard of customer outcomes.”

the framework. He’s keen to develop long-term partnerships like these to be able to meet the needs of Melbourne’s “overheated” infrastructure boom. “We don’t want to lose their input because when we get it right it becomes an effective self-fulfilling model; one founded on keeping those contractors and subcontractors with an amount of work that makes their business sustainable.” It’s a major reason why the future looks bright for Melbourne Water pledges Kelly: “When you build a passion in people that makes them want to come to work and you look after their wellbeing, they will repay you in spades and your projects will be all the better for it.”

realise that success for the two consortia is very much dependent on the success of their competitor, because if one of the consortia starts outstripping the other, the whole model fails, and we’ll be back out to market.

We’re looking for continuous improvement through direct competition, but a nz .busi ne ssc h ief. com

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COLLIERS INTERNATIONAL: 108

A SUSTAINABLE APPROACH TO REAL ESTATE WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

TOM VENTURO

SEPTEMBER 2019

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C O L L I E R S I N T E R N AT I O N A L

AS SUSTAINABILITY CONTINUES TO DISRUPT THE REAL ESTATE MARKET, COLLIERS INTERNATIONAL REVEALS HOW IT IS ADAPTING TO THE CHANGES

“

P

roject management is part of the end-toend property solutions that Colliers provides,” says Scott Anderson, Manag-

ing Director of Project Leaders at Colliers International Australia. The company’s mission to “maximize the potential of property to accelerate 110

the success of our clients and our people” can be seen throughout its operations, with the advice that it offers and the sustainable routes it takes.

With five key values that underline its functions, Colliers aims to be enterprising, collaborate, invest in relationships, be experts and do what’s right.

“Our operations start from the feasibility stage, and continue to bidding, concept design, business case, schematic design, design development, contractor engagement, and then commissioning in steady-state hand-over for the client – we offer end-to-end development services,” notes Anderson. Since joining the firm five years ago, Anderson has overseen the completion of AUS5bn’s worth of capital works. With the business averaging $1bn in capital works per annum, last year the Colliers

SEPTEMBER 2019

AUS$1bn in capital works per annum

1976

Year founded

130+

offices throughout Australia

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C O L L I E R S I N T E R N AT I O N A L

“ WE’VE NOTICED SUSTAINABILITY AS A FUNDAMENTAL SHIFT OVER THE LAST FEW YEARS” — Scott Anderson, Managing Director of Project Leaders, Colliers International Australia

International’s team completed around 120 projects – spanning asset classes in both the private and government sectors. Anderson works with a team of 75 Project Managers who focus on core assets, such as commercial office, retail, industrial, hospitality, hotels, health, education and other social infrastructure. “We provide all project management services, including advisory, development management, project management, program management, procurement and technology solutions for all projects,”

112

he adds.

With offices spanning across all the nation’s mainland territories, the team is predominantly based on the Eastern Seaboard but also covers major cities and regional areas in Australia. Providing independence and technological advancements are core values in its operations, and Anderson explains how the firm strives to deliver on its promises. “We focus on operating as an Independent Project Manager, which means providing our clients with that freedom. There is also a strong focus on offering technology solutions, which our technology SEPTEMBER 2019

CLICK TO WATCH : ‘DISCOVER WHAT LIFE AT COLLIERS INTERNATIONAL IS LIKE’ 113 solutions team are experts at develop-

about every day. If you look across

ing.” However, despite the importance

the Colliers platform, we have a number

of digital transformation, sustainability

of specialist areas that focus on sustain-

is the latest hot topic that Colliers

ability – whether it be solar, wind or

International is prioritising.

a NABERS Green Star rating,” he says.

Sustainability is a huge priority for

The business works hard to ensure

Colliers International, with Anderson

sustainability is considered during all

highlighting how the global issue is

stages of its operations: “Sustainability

addressed by the business. “We’ve

is fundamental to any business – it’s

noticed sustainability as a fundamental

not one asset class, it’s every asset

shift over the last few years. At a macro

class, no matter what project you’re

level, countries have to meet their

looking at. At the very start of the

targets if we want to see real change

design briefs, we always ask ‘What are

as the timeline shortens. So it’s

all the sustainable admissions that

inevitable, and it’s something we think

we can introduce into this project?’” a nz .busi ne ssc h ief. com

C O L L I E R S I N T E R N AT I O N A L

“ PROJECTS ARE NOT JUST ABOUT INITIALLY SAVING COSTS IN THE DESIGN AND CONSTRUCTION PROCESS – WE MUST ALSO CONSIDER THE LONG-TERM OPERATIONS OF THE FACILITY” — Scott Anderson, Managing Director of Project Leaders, Colliers International Australia

5 A Trusted Partnership For over two decades, FDC and Colliers have collaborated on project deliveries valued at over $250M. Colliers have entrusted FDC to build their own offices in multiple states. Together, we have serviced private and public sectors clients across Australia. This enduring relationship is testament to the shared values of service, quality, innovation and reliability.

FDC are award winning specialists in construction, fitout, refurbishment and essential services. fdcbuilding.com.au

Colliers corporate offices built across Australia

20+ Years strong working relationship

250+ Million dollars of collaborated projects delivered

The firm has completed a number of projects that meet the NABERS rating, including the Northern Beaches hospital in Sydney. Completed in October 2018, the site features 12 operating theatres, a 50-space emergency department and 488 beds. “It was thoughtfully designed to optimise patient safety and overall experience, and to provide meaningful management and operational efficiencies that benefit everyone,” the hospital claims.

The $640mn building is the first hospital in the territory to reach four

E XE CU T I VE PRO FI LE

Scott Anderson With a career spanning over 20 years, Scott has built a reputation of managing key stakeholders and delivering world class and complex projects both nationally and internationally.

Scott’s wealth of knowledge stems from his experience spanning across the full spectrum of delivering major complex projects from the bid, feasibility and inception stage, through design and construction, to asset handover to the end client. Scott has successfully bid and managed over $5b worth of projects. As Managing Director of Project Leaders, Scott takes a personal and dedicated approach to ensure the needs of the Client are fully understood and delivered.

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C O L L I E R S I N T E R N AT I O N A L

stars by Green Star for its design and construction. “Sustainability is always at the forefront of our project managers’ thinking at the start of any project – the hospital included.”

Not only are more sustainable practices reducing climate impact, but Colliers is reaping other benefits from its environment-focused operations. By considering the longevity of its work, the firm is seeing long-term savings. “Projects are not just about initially saving costs in the design and 116

construction process – we must also consider the long-term operations

“ ONE THING WE PUSH IS THAT PROJECT MANAGERS ALWAYS HAVE SUSTAINABILITY IN THE FOREFRONT OF THEIR THINKING AT THE START OF THE PROJECT” — Scott Anderson, Managing Director of Project Leaders, Colliers International Australia

of the facility. We avoid the short-term thinking of finishing a project – the long-term life cycling and maintenance costs must be taken into account. This covers issues such as water and power,” remarks Anderson. The firm is responsible for a lot of major social infrastructure projects in which its customers grow into long-term institutional clients, becoming more than just developers. The projects ensure these businesses adopt such ways of thinking and introduce sustainability to their strategies.

SEPTEMBER 2019

117

As the sustainable initiatives and

always have that in the forefront of their

environmentally friendly technology

thinking at the start of the project.

markets continue to grow, Colliers

With regards to our customers, they’re

International expands its offerings

already there, thinking with that

concurrently. “Across the Colliers

sustainability lens. This is not a new

brand, there are a number of solar

conversation – they understand what

initiatives used by some of our major

their shareholders expect, and they

clients, particularly in the retail industry

expect their clients to be at the

where there are opportunities to take

forefront of their initiative, and they

advantage of the technology,” states

expect us, as their project manager

Anderson. “But, like I said, every one

and expert, to provide for them.”

of our projects always features a sustainability element. One thing we push is that project managers a nz .busi ne ssc h ief. com

118

Changing the future for women and their families WRITTEN BY

MATT HIGH PRODUCED BY

ANDREW STUBBINGS

SEPTEMBER 2019

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GUILD GROUP

For GuildSuper, digital transformation is about improving peoples’ lives, as Head of Strategy and Transformation Todd Johnson explains

“ 120

I

f you don’t have a customer-centric digital plan for your customers, then you’re going backwards,” affirms Todd Johnson,

Head of Strategy and Transformation at GuildSuper.

And while most companies will proudly boast of their digital transformation credentials, few can demonstrate the life-changing impact that those plans will have on their customers. GuildSuper can.

The Australian financial services company has rapidly become an innovative and disruptive force in the superannuation sphere, embarking on a digital journey that has seen it evolve from – in Johnson’s words – a “very traditional superannuation fund” to one that has developed a suite of digital tools. Specifically, GuildSuper’s digital journey has focused on the development of a product aimed at helping women have a better understanding of their own superannuation and, as a result, be more secure when they retire.

SEPTEMBER 2019

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Greg Everett, General Manager and Todd Johnson, Head of Strategy and Transformation a nz .busi ne ssc h ief. com

GUILD GROUP

Out of the entirety of superannuation funds in Australia, GuildSuper has the highest percentage of female members at 85%. In order to help facilitate this change, Johnson believes his firm’s strategy to engage with a higher proportion of women has driven significant growth. “Our story is one of innovation, with an overriding philosophy of solving problems for our customers. It began at a time when we were looking to grow the business and find ways in which we could significantly 122

improve our member outcomes.

“ If you don’t have a digital plan for your customers, then you’re going backwards” — Todd Johnson, Head of Strategy and Transformation, Guild Trustee Services

GuildSuper, the fund behind SUPERSUPER, wins Best Fund: Innovation 2019.

To be considered for the award, super funds need to invest in initiatives that make a real difference for their members SEPTEMBER 2019

CLICK TO WATCH : ‘THE SITUATION WITH SUPER’ 123 Rather than embarking on a traditional

a really bleak future for many Australian

customer engagement journey to

women”, including that the highest

inform our product development, we

growing percentage of homelessness

approached things from a different

in Australia was women over the age

angle so that we can truly understand

of 45. “It’s linked to working life and

the problems that Australian women

broken work patterns,” explains

face from a wealth creation perspective,

Johnson. “If you work part time or earn

their emotional motivation with regards

a lower salary then your superannuation

to their finances and the wider

balance will be lower – at the moment

challenges presented to them.”

it’s highly geared towards men. This

Johnson admits that the process led

really got our whole team focused on

to some stark revelations, including

solving this problem and ensuring that

that Australian women will retire with

we serve women better.”

47% less superannuation than men.

Further research, he says, “painted

The problem, says Johnson, was helping women to grow their retirement a nz .busi ne ssc h ief. com

GUILD GROUP

Town Hall event for the Guild Group

124

balance without asking them to lessen their living wage. “We knew that to make a positive difference, our solution needed to be completed different to the traditional ways that members can grow their super. It also needed to be simple, intuitive and relevant for our predominately female membership.”

The development of the new product, SUPERSUPER™, was a significant step in the company’s journey so far, centered around one key question: ‘What do our members really need from us?’

SEPTEMBER 2019

“ The difference in terms of the actual balances that our members see is significant” — Todd Johnson, Head of Strategy and Transformation, Guild Trustee Services

“We used this focus to find a gap in the market, to develop something that no one else is doing and create a digital solution that addresses something really important – it really is a world first,” Johnson notes. The concept behind SUPERSUPER™, is simple; through spending and normal routines, women can effectively put ‘free’ money into their superannuation account.

Additionally, as the contributions received through SUPERSUPER are non-concessional contributions, it also helps our members who are eligible to

E XE CU T I VE PRO FI LE

Todd Johnson With over a decade of experience as a as a financial services executive, Todd Johnson offers a unique blend of leadership, innovation and customer focus. He has served as a business strategy and operations executive in areas including innovation, customer experience, operations and technology. Todd joined Guild Trustee Services (GTS) in 2017 where he was tasked with creating a customer centric culture, that at its core, focussed on improving member outcomes. This led to the creation of SUPERSUPER, a program that improves members ability to grow their retirement balance without having to put their hand in their pockets. Prior to GTS Todd held roles at ESSSUPER as the Executive for Operations and Technology and MLC as the Head of Service for Wrap Platforms.

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125

GUILD GROUP

Guild Group’s #NailedIT employee recognition awards.

receive Government Co-contributions.

“In effect, the product manages this snowball effect of extra funds and the difference in terms of the actual balances that our members see is significant,” Johnson highlights.

As with any significant digital transformation, GuildSuper sought out partners to assist in the development of SUPERSUPER™. “We had a vision, and we knew what we wanted the customer experience to be. It really

“Our culture has changed from one that was quite traditional to one that is about doing something meaningful every time you come to work” — Todd Johnson, Head of Strategy and Transformation, Guild Trustee Services

was a case of approaching it by saying ‘let’s do what we do best and bring in

127

CLICK TO WATCH : ‘HOW TO USE SUPERSUPER’

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GUILD GROUP

vendors that do what they do best’,” Johnson explains. “It was important to get these ideas to market as soon as we could, so we actively sought out the specialist skill sets we needed – we wanted the best in their chosen fields.

Some of the partners we worked with include Protiviti, which excels in planning and project leadership; AHC, which helped us with our calculator and app development; Folio1, a technical solutions provider; and Double Denim, a creative marketing 128

agency based in New Zealand.”

For Johnson, one of the positive outcomes of developing SUPERSUPER™ has been the impact the programme has had on the wider company culture at GuildSuper.

Employees have a new sense of vigour for their work, driven by the feeling they are helping others. Staff across the company were quick to form close bonds with the female personas that Guild created during product development – Elaine, Claire and Sandra. They began to say “I really feel like I’m coming in for a reason,” Johnson states. “Our culture has changed from one that was quite traditional to SEPTEMBER 2019

Celebrating the launch of SUPERSUPER

129

Fundraisers jump for joy

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GUILD GROUP

CLICK TO WATCH : ‘HOW TO GROW YOUR SUPER WITH SUPERSUPER?’ 130

SEPTEMBER 2019

one that is about doing something

as intelligent payment cards to evolve

meaningful every time you come to

the digital experience. “It all comes

work. In turn, that has shaped our new

back to solving the problems of our

vision: ‘Changing the Future for Women

customers. We want to help them with

and Their Families’. It’s bigger, it’s more

any challenges they face with their

aspirational and it genuinely represents

financial services to make their lives

what we want to do as a business.”

better,” Johnson concludes.

Looking ahead to the future, Johnson explains that further development is planned. The company has recently commenced its phase two programme, designed to “take the experience to another level”. This involves further application of new technologies such

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132

TEYS AUSTRALIA: FEEDING PEOPLE, ENRICHING LIVES WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RYAN HALL

SEPTEMBER 2019

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TEYS AUSTRALIA

Teys Australia is ensuring the journey of meat from farm to fork considers environmental impact, promotes animal welfare and facilitates both high yields and superior quality

T

he Teys story began more than 70 years ago when four brothers opened their first butcher shop in Brisbane’s Woolloongabba.

Teys Australia is now an innovative Australian food business with home grown pride and global reach.

134

Drawing on over seven decades of experience in the beef industry, its 4,700-string team focus their energy and expertise on delivering value to communities, customers and consumers.

Contributing more than $3.5bn to Australia’s national GDP, Teys support a further 13,000 jobs in rural and regional Australia. “Our business extends from the paddock to the plate,” confirms Carl Duncan, Group Manager - Resource Efficiency.

“We have a contemporary suite of innovative brands and products that resonate with global consumers, leveraging Australia’s reputation as a clean, green food producer. We’re a dynamic company with a global reach and teams in the US and key Asian markets to connect Australian producers with consumers.”

SEPTEMBER 2019

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TEYS AUSTRALIA

Teys Australia is applying cutting-edge technologies across the business to secure a sustainable beef supply chain.

“Our producer feedback is specifically tailored to assist cattle suppliers in improving their business,” explains Duncan. “From x-ray imaging to connecting producers and consumers through digital pathways, our future in this space is exciting. As we transition to a low carbon economy we continue to invest in energy, water and renewable energy projects such as our Low Emissions Energy Hub at Teys Wagga.

136

This will be the first of its kind in the Australian red meat industry, if not the world. We will combine multiply renewable energy technologies in one location, tailored to match plant requirements.”

To this end, Teys has a pipeline of over 13MW in solar PV projects to deliver as it tracks towards its 2023 targets; these include fulfilling 30% of its energy needs via renewables.

This $42mn investment at Teys Wagga will see a combination of renewable energy technologies (such as solar, energy storage and bio energy plant with energy productivity) deployed SEPTEMBER 2019

CLICK TO WATCH : ‘SOLAR ENERGY PROJECT – TEYS AUSTRALIA – CONDAMINE FEEDLOT’ 137 E XE CU T I VE PRO FI LE

Carl Duncan Duncan started his career as an electrical technician working on industrial automation and controls in New Zealand. His eyes were opened to the world of energy and carbon management when he moved to Australia in 2004 and was inspired to re-train as an energy manager at Murdoch University. After landing a role with Australian’s leading energy and carbon consultancy, advising ASX200 company’s on resource efficiency, Duncan progressed to senior roles and then over to Teys as a Group Manager. A multi-skilled professional specialising in energy management, carbon abatement and renewable energy with a passion for driving better business performance, his core objective is to support Teys Australia’s business to become more profitable while improving environmental performance with a focus on sustainable food production. Duncan is also a member of the Australian Beef Sustainability Framework, Sustainability Steering Group (SSG).

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TEYS AUSTRALIA

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AUS$2.5bn Approximate revenue

1946

Year founded

4,700

Approximate number of employees SEPTEMBER 2019

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TEYS AUSTRALIA

CLICK TO WATCH : ‘BRINE & WASTEWATER MANAGEMENT INNOVATION - TEYS AUSTRALIA - MURGON’ 140

E X ECU T I VE P RO FI LE

Tom Maguire Brings over 25 years of experience in the meat processing industry to his role at Teys. He spent over a decade at the Australian Meat Industry Council where he was National Processing Director.

“Having come out of the industry for a while you see lots of difference views,” says Maguire. “Our educational efforts have much work to do in aligning views. You have to take the time to understand people’s perceptions in this area and consult with them.” Maguire also serves as director at AUS-MEAT Ltd and is Director of the Australian Meat Processors Corporation (AMPC) where he was elected to the board for a seventh term in December 2017.

SEPTEMBER 2019

to make the site energy sufficient - a first

Teys Australia has retained its strong

in the Australian red meat processing

founding family connections and it is

industry. “We’re really excited to progress

this rich heritage Duncan believes will

this initiative to not only change mindset

drive the company’s future. Vital to that

but prove it can be achieved,” says

future is a commitment to animal welfare.

Duncan

All of Teys Australia processing facilities

As one of the leading beef processors

operate under the Australian Livestock

and exporters in Australia, Teys is proud

Processing Industry Animal Welfare

partner to over 7,000 Aussie beef

Certification System (AAWCS). An

producers and some of the largest

independently certified animal welfare

names in fresh food retailing in the

program ensuring livestock under

country. In a joint venture with Cargill

its control (from receipt to humane

(offering a global reach with partners in

processing) are managed in accordance

the European Union, Japan and the USA)

with best practice standards.

E XE CU T I VE PRO FI LE

Amelia Simony Is an Environmental Manager with experience in the Food Production, and High-Risk Construction industries. Skilled in WHS and Environmental Risk Management and Compliance she has worked at Teys Australia for over five years on projects such as the successful delivery of a $24mn waste water treatment facility at Teys Rockhampton. Simony notes a strong culture for a high standard of compliance and continuous improvement at Teys “supported by routine inspections, reporting and comprehensive annual internal environmental audits” the scope of which includes all of the company’s activities and operations. Previously she worked as a Site Zero Harm Administrator for Downer Engineering Power – a contractor on multi-million-dollar government projects.

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141

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LEARN MORE

gordonbrothers.com.au 03 9389 6666 info@gordonbrothers.com.au

Danish-made biomass boilers, now in Australia.

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CLICK TO WATCH : ‘LOW EMISSIONS ENERGY HUB PROJECT - TEYS AUSTRALIA - WAGGA’ 143

“ Transferring our focus on resource efficiency to all parts of the business with projects such as our Low Emissions Energy Hub is an opportunity to change mind set and demonstrate what’s possible” — Tom Maguire, Chief Value Chain Office, Teys Australia

Allied to this is the emerging trend for customers caring more about ethical claims and beef processing operations, including consideration for environmental claims as well as animal welfare practices. “The perception of happy healthy cattle is becoming increasingly important to beef consumers,” confirms Duncan.

“Today’s consumer is very conscious about the provenance of their produce and want supply chain transparency.

In terms of sustainability we align with the key sustainability pillars of: People & Culture; Environmental Stewardship; a nz .busi ne ssc h ief. com

TEYS AUSTRALIA

Animal Welfare and Economic.”

Duncan explains the importance of these pillars and that, with a workforce of 4,700+, Teys understand long-term success will come from empowering its people. “We continue to promote employee career paths, choosing appropriate education and training pathways, and promoting from within.

The opportunities at Teys are extensive, with careers in livestock, operations and professional services,” he says.

Meanwhile, Teys acknowledges its 144

fundamental responsibility to manage impacts on agricultural communities through best practice environmental stewardship. “We employ ethical planning and management practices for the responsible use, and protection of natural resources whilst maintaining compliance with the legislative framework,” confirms Duncan who notes that in 2018 Teys committed to a public target to reduce carbon intensity by 20% and water intensity by 10%. Teys also support the red meat industry achieving carbon neutrality by 2030.

Teys has implemented an Environmental Management System based on the requirements of ISO14001 and, SEPTEMBER 2019

employs dedicated environmental resources at each of its processing facilities to manage environmental risks and opportunities. Group Environment Manager Amelia Simony highlights the major progress the company is making with environmental stewardship. “One of Teys’ greatest achievements is our investment into state-of-the-art water treatment facilities at all of our large meat processing facilities that not only improve the quality of water for the receiving environment but also significantly reduce greenhouse gas emissions,” she reveals. “Biogas, captured as a by-product of anaerobic water treatment, is captured and then utilised as a renewable energy source alternative to conventional fossil fuels.”

Teys commitment to reduce water intensity by 10% by 2023 will see a number of water efficiency projects rolled out across the group such as water efficient nozzles and high pressure, low flow cleaning systems.

Along with its commitment to animal welfare, the fourth Teys pillar recognises that though Australia is one of the world’s largest and most efficient a nz .busi ne ssc h ief. com

145

Australia’s Largest DIVERSified Energy Services Specialists UNIfied is Australia’s leading provider of commercial LED, Solar and Energy Management solutions.

Our expertise assists businesses to take control of their energy spend and increase their sustainability credentials. UNIfied congratulates Teys Australia on their ongoing commitment towards a sustainable future!

LEARN MORE

Energy Services

exporters of beef products (the red

CONTACT US

Chief Value Chain Officer Tom Maguire

meat and livestock industry accounts

highlights the importance of sustainabil-

for approximately 1.6% of Australia’s

ity for Teys and the industry in general…

GDP) farmer profits tend to be low,

“It makes good business sense,” he

affecting their ability to withstand

says. “However, it becomes a social

unexpected shocks such as drought.

licence issue when in fact if we communi-

Economic focus at Teys Australia sees

cate better we can drive purchasing

the company support the approach

decisions in a high valve market.”

to value-based marketing (VBM) - pay-

Building a focus consistent with the

ment on the basis of actual beef

Australian Beef Sustainability Frame-

carcase weight and quality. “Teys’

work (ABSF) is vital to Teys as there

approach to economic reliance is

is a very strong focus on animal welfare

to leverage technology so that

which is important to consumers and

producers can gain better insights

engagement with the supply base.

and be rewarded for producing better

In 2019 Teys will commit over $5mn

quality beef,” adds Duncan.

to energy and war projects. “Effort

SEPTEMBER 2019

147

around energy, water and GHG emissions makes good business sense as they are becoming more expensive over time,” explains Maguire.

“Transferring our focus on resource efficiency to all parts of the business with projects such as our Low Emissions Energy Hub is an opportunity to change mind set and demonstrate what’s possible.”

“ Our business extends from the paddock to the plate” — Carl Duncan, Group Manager – Resource Efficiency, Teys Australia

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TEYS AUSTRALIA

C O M PA N Y FACT S

• The Queensland’s Premiers Award for Sustainability • Climate Change Leaders (SA) Runner Up • L argest investment in renewables within the red meat processing sector • F irst to develop and implement a carbon intensity target in the Australian processing sector 148

• P ioneering Value Based Marketing (VBM) initiative

“One of Teys’ greatest achievements is our investment into state-of-the-art water treatment facilities at all of our large meat processing facilities that not only improve the quality of water for the receiving environment but also significantly reduce greenhouse gas emissions” — Amelia Simony, Group Environment Manager, Teys Australia SEPTEMBER 2019

149

Over the past two decades,

the industry is proactive,” assures

total global consumption of beef

Duncan. “Key initiatives such as the

has increased by 1% per year. In 2017,

Australian Beef Sustainability Frame-

beef accounted for 21% of total global

work are helping to meet the changing

meat consumption. Global demand

expectations of consumers, custom-

for red meat is forecast to increase

ers, investors and other stakeholders,

1-2% per year with increasing global

and promote the longevity and

populations and growing incomes,

prosperity of the industry.”

especially in Asia. Overall Teys expect the global demand for beef will double by 2050 which could lead to protein deficit and distribution problems.

“From a sustainability perspective, a nz .busi ne ssc h ief. com

150

HOW SIMEC ENERGY AUSTRALIA IS MAKING UTILITY SCALE RENEWABLE ENERGY A VIABLE CHOICE FOR AUSTRALIAN BUSINESSES WRITTEN BY

HARRY MENEAR PRODUCED BY

RYAN HALL

SEPTEMBER 2019

151

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SIMEC ENERGY AUSTRALIA

Marc Barrington, CEO of SIMEC Energy Australia, shares his insight into the changing face of the nation’s energy sector, the rising tide of customer centricity and the firm’s new battery and solar farm projects

I

n Australia, the energy industry is rapidly turning towards greener, more sustainable energy supply solutions, particularly

with regard to one of the country’s most abundant resources: the sun. As of March 2019, more than 2mn solar photovoltaic (PV) installations with 152

a combined capacity in excess of 12GW, were operational across the country. This is all as a result of a changing world. Climate change, potentially the greatest existential threat humanity has faced, is emerging as the defining crisis of our time.

The world needs to change or face radical consequences. “All facets of society are aware of climate change, with the majority accepting that humankind has played its part in bringing about global warming. The energy sector globally remains a large emitter of greenhouse gasses and everyone from investors to consumers of energy are aware of this. At the same time, energy prices have continued to rise, to a large extent driven by the ageing nature of Australia’s in-situ thermal generation plants,” explains Marc Barrington, CEO of SIMEC Energy Australia.

SEPTEMBER 2019

153

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SIMEC ENERGY AUSTRALIA

“ One thing that always surprises me in business is, no matter how small a company is, silos always seem to exist” — Marc Barrington, CEO, Simec Energy Australia

“Operating a sustainable energy company like SIMEC Energy Australia means we can present solutions to many of these issues by enabling the transition from older – and sometimes less reliable – fossil fuel technologies to clean renewable generation, constructing renewable energy portfolios that deliver lower costs for consumers and finally delivering an environmental outcome for society.” Since 2004, SIMEC Energy Australia (originally ZEN Energy) operated out of Tonsley in South Australia, providing solar PV

154

and storage offerings to residential and commercial customers across the region. Post-Sanjeev Gupta’s majority stake in the business in late 2017, SIMEC Energy expanded into commercial and industrial energy supply nationally with offices in South

SEPTEMBER 2019

CLICK TO WATCH : ‘GFG ALLIANCE - CULTANA SOLAR FARM PROJECT’ 155 Australia, Melbourne and Sydney.

to better respond to the challenges

Barrington has served as CEO since

of a changing landscape. “One thing

July 2018 and brings the better part

that always surprises me in business

of two decades’ experience in the

is, no matter how small a company is,

energy sector to the role. Barrington

silos always seem to exist,” he notes.

shares his insight into the changing

“In the past twelve months, we have

face of the nation’s energy sector,

been able to build a more collaborative

the rising tide of customer centricity

and inclusive culture internally,

and the firm’s new battery and solar

which I believe has delivered – and

farm projects.

will continue to deliver – real results

As the leader of an agile, challengerscale renewable energy provider and

for the business, our people and most importantly our customers.”

retailer, Barrington has spent the last year working to improve SIMEC

A NEW DIRECTION FOR THE MARKET

Energy’s ’s internal operations in order

The company’s customers, Barrington a nz .busi ne ssc h ief. com

Data at the heart Analytics Pathway

Data Science

Decision Intelligence @ Scale

“Ignite’s professional, open, pragmatic and business centred approach has been invaluable to Ballance as we establish and embed our Data Science capability.”

Chief Digital Officer, Ballance NZ

Contact Us

The Ignite way: making data the hero Data is at the heart of everything, so why is it so hard to articulate its value? Why do digital transformations focus on collecting more of it, rather than using it more? And why do we try to categorise data into marketing driven terms such as big data, machine learning, deep learning and artificial intelligence rather than focus on the potential they can unlock?

Data is indeed at the heart of everything, but its value lies in how it is used. Like past technology evolutions, investing in great technology tools is necessary but not sufficient. Rather it is about embracing a culture that focuses on the intrinsic value of data to improve the organisations and society around us. That’s a feat few are achieving.

Last year, MIT CISR surveyed 315 executives to understand how companies generated economic returns from data activities.

• 60% rated their company as average, or below, at using data to create operational efficiencies.

• 62% believed their firm was average, below average or unable to integrate analytics into products and experiences.

• 40% said they weren’t even looking at, let alone capable of, generating revenues from selling information solutions.

Many organisations are clearly still struggling to unlock value from their data, and it’s this challenge that motivates us at Ignite. Lessons we have learnt have taught us to take a pragmatic, business-centred approach to data.

We want to make data the hero and put it at the core of solving problems. The focus is on finding repeatable value and then unlocking it perpetually by implementing decision intelligence at scale.

That’s how we have built our relationship with SIMEC Energy Australia. For utilities, the issue isn’t convincing anyone of data’s value, it’s proving how to extract it.

Leveraging Databricks for machine learning on a Microsoft Azure platform has given SIMEC a powerful solution.

As the organisation has grown, we’ve invested together to augment this capability. Though AEMO and market

changes mean many utilities have had to rethink and reinvest in their data platforms, SIMEC are well positioned for the future; poised for data from the Playford Battery, able to adapt to the changing data landscape 5-minute settlements will bring, and able to provide customers the ability to interpret their own data using SIMEC provisioned insights. Using data to improve the communities we live in is at the heart of the partnership investments we make with SIMEC.

“In partnership with Ignite, we have successfully implemented a number of data-intensive and complex initiatives that have had a very positive impact on SIMEC’s growth.”

GM Retail Operations, SIMEC Energy Australia

The Ignite way is simple: understand and communicate data science in terms of business application and value.

To determine the size of the prize, we work with your experts to discover how data can streamline day-to-day decisions, improve products and experiences or create revenue streams. This focused collaboration allows us to generate excitement around data and data science techniques early.

The analytics pathway assesses the feasibility and impact, creating a genuine path to embedding the outcome. It also gives sponsors confidence that time and money are not being wasted “just experimenting” whilst allowing for the exploratory nature of data science.

Our relationships reflect our commitment to improve data literacy across the community. As industry mentors with Monash University we help nurture the analysts of tomorrow. By partnering with us, clients know we’ll be doing everything we can to upskill their own talent.

For us, a future with amazing analytics platforms, operated and developed by even more amazing people, is one worth pursuing.

Learn More

SIMEC ENERGY AUSTRALIA

158

C O M PA N Y FA C T S

SIMEC’s Majority Investor: The GFG Alliance • SIMEC Energy Australia is a part of the GFG Alliance, and has built an energy offering for GFG and their steel manufacturing interests that enables them to access real value.

• GFG Alliance is an international grouping of businesses, founded by the British Gupta Family.

SEPTEMBER 2019

The Alliance’s integrated business model encompasses mining, energy generation, metals and engineering, underpinned by industryfriendly financial services, a substantial property portfolio.

• Sanjeev Gupta serves as SIMEC Energy Australia’s chairman.

“ Our customers are better informed as to the way in which they use energy now, than they ever have been historically” — Marc Barrington, CEO, Simec Energy Australia

Marc Barrington

explains, are set to be a major driving force in the energy sector over the next decade. “Our customers are better informed as to the way in which they use energy now than they ever have been historically,” he says, chalking up increased customer savviness to rising energy costs. Barrington’s experience in the space means he sees this trend as one among many that constantly buffet and buoy the industry. “Whether

E XE CU T I VE PRO FI LE E XE CU T I VE PRO FI LE

159

Marc joined SIMEC Energy Australia as CEO in July 2018, working with a strong team of executives aiming to deliver compelling solutions for commercial and industrial consumers of energy, including the requirements of the Liberty/GFG Group. He is an experienced executive with significant exposure to Australia’s energy markets. Prior to joining SIMEC Energy, Marc was Head of Sales, Asia Pacific at wind turbine OEM, Senvion, prior to this, he held senior positions at AGL Energy including General Manager Energy Services, Head of Eco-Markets and Senior Energy Trader. Marc commenced his career at NM Rothschild and Sons trading precious metals, working in both Sydney and London and then moved to a Geneva headquartered trading house, focusing on metals, foreign exchange and associated derivatives. Marc has undertaken Senior Leadership studies with Melbourne Business School and is a Graduate of the Australian Institute of Company Directors.

He has held numerous Board and committee roles including NonExecutive board member for the Australian Alliance to Save Energy as well as participating in many community-based volunteer programs such as the I-Track Mentor with The Smith Family. a nz .busi ne ssc h ief. com

SIMEC ENERGY AUSTRALIA

it’s changing market structures, such as we have witnessed with the disaggregation of the market and the advent of vertical integration; the change in technology and operational efficiencies; the regulatory landscape or even the changing needs of customers and the rise of the ‘prosumer’ – the energy sector has seen it all.”

Certain that SIMEC Energy’s utilityscale renewable offerings are the future of the country’s energy market, Barrington’s generation supply 160

priorities for the company are currently centered around two major projects: the Playford Utility Battery and the Cultana Solar Farm. “Utility-scale renewable energy can deliver prices that are substantially more competitive than the prices of new-entrant thermal generation. When delivered well and structured into an innovative retail energy portfolio, these assets can deliver real savings for customers – particularly when integrated into an active demand-side response programme.

Having access to in-house built renewable generation, coupled with the means to firm it, is the foundation of our strategy for our Company,” he explains.

SEPTEMBER 2019

On the retail front, Barrington made clear that he is keenly focused on delivering globally competitive energy to customers and securing ‘win-win’ outcomes through innovative solutions like demand management. “Our customers need energy solutions that allow them to compete both domestically and internationally. I think that we have the operational capability to meet this need,” he said.

PLAYFORD UTILITY BATTERY A utility-scale battery development that will support SIMEC Energy’s renewable energy portfolio and provide services to the national electricity grid, the Playford project will provide direct and indirect employment opportunities in Port Augusta and surrounding areas, as well as assisting in the transformation of the Whyalla Steelworks by enabling the supply of cheaper and cleaner energy. “We have undertaken substantial amounts of work to ensure the use cases for the battery, which will be a world first, deliver value to our portfolio and more importantly to our customers in South Australia,” says Barrington. a nz .busi ne ssc h ief. com

161

SIMEC ENERGY AUSTRALIA

162

SEPTEMBER 2019

163

AUS$250mn Approximate revenue

2015

Year founded

50

Approximate number of employees

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SIMEC ENERGY AUSTRALIA

164

SEPTEMBER 2019

The project, he enthuses, is an industry-leading example of Australian ingenuity harnessing the latest technologies with marke-specific use cases, in order to create long-term value.

“The Playford Utility Battery algorithm that we have developed with experts in this field – all of whom are Australian I am proud to say – utilises artificial intelligence (AI), machine learning (ML), big data analytics and Internet of Things (IoT) technology,” he explains.

“Should we be able to take this project to financial close, we will demonstrate for the first time the power of battery storage in managing the variability f renewable generation and deliver long term price improvements for end-use customers in the region.”

CULTANA SOLAR FARM With construction scheduled to begin imminently on land just north of the Whyalla Steelworks, the Cultana Solar Farm is a 280MW capacity solar PV facility that will contribute to the national electricity grid via the existing Cultana substation. The project is a key component – coupled with its retail objectives – of the firm’s desire to reshape the a nz .busi ne ssc h ief. com

165

SIMEC ENERGY AUSTRALIA

Australian energy market by providing utility scale renewable energy at rates that are competitive to current thermal alternatives, and therefore a critical priority. “Given that we are in the final stages of taking Cultana Solar Farm to financial close, I am focusing heavily on planning for the safe delivery of the project with our staff and partners,” confirms Barrington. “We have developed the farm in consultation with the local community and expect that construction will commence before 166

the end of the year.”

Looking to the future, Barrington is confident that both SIMEC Energy Australia and the market as a whole are on the right side of history.

At any time, I ensure my team can

“ Utility-scale renewable energy can deliver prices that are substantially more competitive than the prices of new-entrant thermal generation” — Marc Barrington, CEO, Simec Energy Australia

SEPTEMBER 2019

devote efforts to looking at a point just beyond the horizon, whether it’s products, systems or trading strategies. I use this approach, as it delivers an anticipatory culture that makes for a very exciting working environment,” he enthuses. In addition to completing its major projects, SIMEC Energy is working on reinvigorating its presence in the commercial and residential solar

167

PV and battery storage market,

to see industry in our country grow

as well as expanding its energy

sustainably, what a great challenge

product portfolio. Sustainability,

to have,” he concludes.

of course, will remain at the heart of everything that the company does.

Reshaping the country’s energy industry is, Barrington admits, an ambitious goal. “It’s not without challenges, but as a father, a husband, an employer and someone who wants a nz .busi ne ssc h ief. com

168

ACHIEVING LONG-TERM SUSTAINABILITY GOALS AT RESILIENT MELBOURNE AND THE FUTURE BUSINESS COUNCIL WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

RYAN HALL

SEPTEMBER 2019

169

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RESILIENT MELBOURNE

TOBY KENT, MELBOURNE’S CHIEF RESILIENCE OFFICER AND CHAIR OF FUTURE BUSINESS COUNCIL, DISCUSSES THE IMPORTANCE OF DRIVING CHANGE AND REALISING SUSTAINABILITY THROUGH COLLABORATION

H

arbouring an ambition to achieve long-term sustainability, Toby Kent, Chief Resilience Officer of Resilient Melbourne, is committed

to driving change. In addition to his role at Resilient Melbourne, Kent is also Chair of the Future Business Council, a membership organisation that 170

exists to advance the interests of future looking sustainability-oriented businesses. He stresses that in both roles, his position is fundamentally about supporting teams to make connections and helping to break down traditional barriers as well as fostering new, deeper forms of collaboration.

Resilient Melbourne was initially instigated by a grant from the Rockefeller Foundation under its 100 Resilient Cities (100RC) initiative. 100RC helps cities worldwide to meet the physical, social and economic challenges that are influencing the 21st century. Melbourne was selected from 372 applicant cities worldwide to become one of the first 32 cities to join the 100 resilient cities network.

With metropolitan Melbourne consisting of 32 local government authorities comprised of more than 10,000 sq km in the area around Port Phillip SEPTEMBER 2019

171

Toby Kent, Chief Resilience Officer, Resilient Melbourne

S TAT S

• Resilient Melbourne is made up of approximately 30 councils, with additional support from the Victorian Government and many public and private organisations. • Future Business Council represents over 150 businesses, from start-ups to major corporations, across Australia.

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RESILIENT MELBOURNE

“ RESILIENT MELBOURNE HAS FOUR INTERDEPENDENT, LONG-TERM OBJECTIVES, WHICH AT THEIR HIGHEST LEVEL SEE OUR METROPOLITAN COMMUNITIES AIMING TO BE STRONGER TOGETHER, HAVE SHARED PLACES, A DYNAMIC ECONOMY AND A HEALTHIER ENVIRONMENT” 172

— Toby Kent, Chief Resilience Officer, Resilient Melbourne Chair, Future Business Council

Bay, Kent and the Resilient Melbourne team led the creation of the city’s first ever resilience strategy. This involved working in partnership with over 1,000 representatives from more than 230 organisations and agencies. The strategy provides an alternative way to address chronic stresses that impact the city, such as rapid growth and congestion and to be better prepared to deal with acute shocks, such as extreme heat, fire and floods. “Resilient Melbourne has four interdependent, long-term objectives, which at their highest level see our metropolitan communities aiming to be stronger together, have shared places, a dynamic economy and a healthier environment,” explains Kent.

Resilient Melbourne has most recently released Living Melbourne: our metropolitan urban forest, which aims to improve liveability and enhance the health of the city. There are many advantages to the urban forest, according to Kent. Importantly, he says, it is a way to tackle unpleasant impacts of climate change and other stresses, presented in a way that excites people, rather than scaring them, which halts action. “Substantively, the urban forest helps to cool

SEPTEMBER 2019

CLICK TO WATCH : ‘RESILIENT MELBOURNE’ 173 the city, particularly in times of extreme

access to green space they are more

heat. It uses vegetation to slow water

inclined to take active exercise.

run-off, as well as reducing flooding

Kent’s work with the Future Business

through absorption.” Working with

Council shifts a focus from a single

partners; The Nature Conservancy,

city to a broader Australian context.

Digital Globe and Trimble, Resilient

FBC works with businesses and their

Melbourne has mapped Melbourne’s

partners across Australia to identify

vegetation. “There is a clear correlation

and support organisations that are

between affluence and access to

forward-looking and have sustainability

green, vegetated spaces,” Kent says.

built into the way they do business.

“There are important social equity

Through its ‘2018 Next Boom’ report,

aspects to this work.” Greening the

FBC highlights that key opportunities

city has further positives, including

for the Australian economy include:

that seeing nature has proven mental

positioning ‘brand Australia’ to be

health benefits, and when people have

a progressive, innovative, clean and a nz .busi ne ssc h ief. com

RESILIENT MELBOURNE

174

Deputy CRO, Maree Grenfell, launches Living Melbourne

green economy; expediting the transition to a low-carbon Australia, incorporating infrastructure and the uptake of electric vehicles; as well as promoting innovation more broadly across a range of goods and services Australia does well, particularly around agriculture and finance.

With a drive to ensure Melbourne becomes ever-more resilient and that Australia seizes the opportunity of ‘the next boom’, Kent believes technology is a critical component to cities’ and SEPTEMBER 2019

“ THE URBAN FOREST HELPS TO COOL THE CITY, PARTICULARLY IN TIMES OF EXTREME HEAT, IT USES VEGETATION TO SLOW WATER RUN-OFF, AS WELL AS REDUCING FLOODING THROUGH ABSORPTION” — Toby Kent, Chief Resilience Officer, Resilient Melbourne Chair, Future Business Council

businesses’ strategies. “In Melbourne,

start at a human level.” With that in

the overall plan is to make our city

mind, Kent reflects on how he marries

more resilient through innovation

both his city work and his FBC lives

around systems, and continuously

together. “Companies of all sizes talk

questioning how we do things,” he

about the need to understand their

explains. “I believe technology can

customers, and the necessity of being

be an enabler of that. However, the

customer-centric. One of the things

starting point has to be people; they

I love about my urban work is that as part

are at the heart of all cities, which is

of their communities, local governments

why it’s so critical that your solutions

profoundly understand their customers.”

E XE CU T I VE PRO FI LE

Toby Kent Toby Kent is the Chief Resilience Officer for Melbourne.

Separately, he is Chair of the Future Business Council. Kent has created and implemented resilience and sustainability strategies across a range of sectors. Since the late 1990s he has worked with governments, communities, industry sectors, and many other stakeholders on five continents Various achievements include: supporting the growth of Corporate Citizenship, one of the UK’s preeminent specialist Sustainability consultancies; leading PricewaterhouseCoopers’ Sustainability work with retail and consumer goods companies in the UK; and running PwC’s Sustainability & Climate Change team in Hong KongPrior to leading Resilient Melbourne, Kent worked with leading Melbourne businesses, including MMG mining corporation and ANZ bank, where he was Head of Sustainable Development.

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175

FUTURE BUSINESS COUNCIL

We want everyone to thrive in a digital world.

In an increasingly inter-connected world, digital technology is helping society respond to issues in a more agile and scalable way.

Download our Bigger Picture Sustainability Report here

International CROs explore the role of biodiversity in building urban resilience 177 On the importance of implementing

about asking the right questions and

the right technology and not simply

being open to not knowing the answers.

embracing new innovations for the

At Resilient Melbourne, we worked

sake of it, Kent highlights how his

with a firm Citymart to ask the market

organisations welcome change

and citizens more broadly: ‘How can

without fear of failure. “Part of the way

Melbourne address the twin stresses

we innovate is to be unafraid to trial

of increasing transport congestion

new things, and being willing to fail

and decreasing social connection?’”

fast,” he says. “While we always need

Kent and his team created a panel

to do our due diligence, we’re seeing

of innovation experts, transport and

even the biggest companies becoming

infrastructure professionals, rand city

increasingly comfortable with generating

government. “By asking people how to

the minimum viable product and iterating

solve the challenge rather than telling

off the back of real user experiences.”

them the solution, we identified some

“Perhaps even more importantly is

really innovative approaches. Excitingly a nz .busi ne ssc h ief. com

RESILIENT MELBOURNE

this allowed some start-ups that would otherwise have struggled to get past traditional procurement approaches to out-compete some major multinational corporations. It served us well.”

Collaboration is critical to addressing existing and future challenges. The world is too complex and fast-paced for single entities to deliver all the solutions. “We have a way to go, but we’re getting better at working across government, business and academia here in Australia,” he explains. Kent points to the relationship between 178

Monash Business School and FBC and believes that collaboration has been important. “Our respective networks help us to draw out profound insights. Perhaps the greatest indicator of the depth of the relationship is that FBC recently appointed last year’s Monash-FBC MBA scholar, Suzanne Paynter, as its new interim CEO.” Similarly, Resilient Melbourne works with many universities, but its relationship with the University of Melbourne’s, City of Melbourne Chair in Resilient Cities, a co-funded position, has delivered particular value to Melbourne’s work on resilience.

Beyond that, Kent highlights impressive SEPTEMBER 2019

work between RMIT, Swinburne Centre for Social Impact and Telstra. “Over the last four years, these partners have produced the Australian Digital Inclusion Index and it’s encouraging because they’re enabling a profound level of understanding of societal vulnerability and needs in a very fastmoving space. We’re becoming more digitally inclusive, and it’s fundamental that we do, because the gap between those most included and benefiting from digital technologies and those who aren’t is growing significantly, in addition to the consequences as an increasing number of services go online.”

Suzanne Paynter, interim CEO Future Business Council

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RESILIENT MELBOURNE

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“ PART OF THE WAY WE INNOVATE IS TO BE UNAFRAID TO TRIAL NEW THINGS, AND BEING WILLING TO FAIL FAST” — Toby Kent, Chief Resilience Officer, Resilient Melbourne Chair, Future Business Council

Considering the future, Kent highlights the importance of focus and growth for both Resilient Melbourne and FBC over the next few years. “Resilient Melbourne must continue demonstrating its value at a state, council and grassroots level in order to show that we’re helping to reduce the chronic stresses that could potentially pick away at the fabric of society and may become the shocks of the future,” affirms Kent. “We must be able to show how we’ve played a role in decreasing

SEPTEMBER 2019

181

the impact of those shocks and helping

Foundation, Australian Ethical and

people to not just bounce back from

early supporters, such as Bank

the horrors of what they might have

Australia with its clean money

experienced, but to move forward.”

campaign, have to quickly move to

“In terms of the FBC, it’s essential

underpinning our economy. It’s not

that we show our members that

too much of a stretch to say that our

they have a stronger voice together.

future depends on it.”

With so many of our members currently occupying niche positions in our economy, we must ensure they become mainstays — the backbones.

Business models like those of FBC members the Australian Energy a nz .busi ne ssc h ief. com

182

MILLENNIUM SERVICES GROUP: CLEANING UP WITH NEW TECHNOLOGY WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

STUART IRVING

SEPTEMBER 2019

183

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MILLENNIUM SERVICES GROUP

How Millennium Services Group is innovating with new solutions to manage cleaning and security services for commercial clients across Australia and New Zealand

O

riginally established in 2003, Millennium Services Group was publicly listed in 2015 when three businesses, based in Mel-

bourne, Sydney and Adelaide, came together as a national company to offer cleaning and security 184

services, before expanding further the following year with the acquisition of Airlite, a Building Support Services provider from Perth.

Millennium’s Chief Information Officer David Benjamin has entered the second year of his tenure with the company focused on three key areas: cost, consolidation and stability. “We had to look at the total cost of ownership following the company’s listing in 2015,” he recalls. “The consolidation was about bringing systems together to give them that history of the organisation. There was some duplication of technology systems, so it was an opportunity to unify the four branches of the company. Lastly, we had to get to a point where our systems were stable and delivering where they needed to because, when I joined, the business had simply outgrown the technology solutions originally put in place.”

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MILLENNIUM SERVICES GROUP

$295mn Approximate revenue

The two main services the company provides are cleaning and security.

Millennium has commercial cleaning contracts with large shopping centre chains (such as Scentre Group, Vicinity

2003

Year founded

5,300

186

Approximate number of employees

and Stockland), Myer, office buildings, universities and government buildings like Brisbane’s Queensland Investment Corporation. The security services often fit hand in glove with the cleaning services provided, where the same clients and sites also need security for the assets they own. In addition to the above, security contracts are held with Melbourne Racing Club, Sydney Metro, and multi-national high security Data Centre clients. These services can include shopping mall patrols, concierge services, remote monitoring systems and anything where physical security is required, including large public events such as the Caulfield Cup race meeting during Melbourne’s Spring Racing Carnival.

When Benjamin joined the company, it had three separate networks which have now been migrated to a business grade private cloud hosted by an external vendor. “CustomTec is hosting this for us,” he explains. “There were

SEPTEMBER 2019

also duplications around the payroll and

for collaboration such as web confer-

account systems, so we’ve migrated

encing,” says Benjamin.

those onto a single platform, resulting

Introducing new technologies is par

in significant cost savings by reducing

for the course at Millennium, where

the number of vendors.” Millennium has

the company has purchased 25 robot

also consolidated its phone systems

cleaners from Canadian firm Avidbots.

to VOIP in all of its offices in Australia

Typically programmed to run after

and New Zealand. “We’ve already seen

hours – for example, when a shopping

huge savings around telephony costs

centre is closed – the machines are

but also our travel costs, because the

monitored 24/7 from the vendor’s

solution has also delivered other tools

control centre. “It’s helping us in

E XE CU T I VE PRO FI LE

187

David Benjamin David Benjamin previously spent 10 years with National Australia Bank as its Delivery Manager for enterprise applications supporting 35,000 employees worldwide. Offering a unique blend of commercial acumen, program management and an understanding of comparative technologies, Benjamin is well versed in stakeholder management. “One of my key skills is the ability to translate technology into a business outcome,” he adds.

“It’s important to listen to staff and understand the business needs before entering solution mode.”

He believes being able to apply new technology requires experienced change management for successful implementation. “Technology alone won’t fix things,” warns Benjamin. “It’s the ability to introduce change, get it adopted, and bring people on that journey, that will deliver a positive transformation.”

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MILLENNIUM SERVICES GROUP

188

reducing our labour cost, while

Other innovations include a staff

increasing reliability. Anything that can

tracking system offering the ability to

be automated offers a more consistent

provide reporting and data back to the

outcome, which our clients are

client on, for example, how often areas

demanding from us,” says Benjamin.

such as a shopping mall food court

“Robotics play a key part in removing

requires attention from cleaners. “It’s a

that dependency and giving us greater

key requirement for many of our clients

traction where large floor areas need

to ensure a ‘rotation’ is being met,”

to be cleaned. This leaves our staff free

adds Benjamin. “It could be that they

to do the more specialised cleaning

want cleaners to pass by a certain area

that the robots can’t do, such as glass

on site every 20 minutes.” He explains

or window sills.”

that cleaners aren’t just choosing

SEPTEMBER 2019

189

where to go. There is a methodology at

Millennium isn’t just flying solo says

play to ensure the best coverage of a

Benjamin, who notes the importance

given site, enhancing the public’s

of alliances with the likes of CustomTec

experience and reducing the impact of

and Melbourne-based Elite-ID, which

public liability claims. “It’s a challenge

provides the tracking systems.

for Millennium where accidents will

“We also have a site auditing software

always happen in large public spaces,”

solution where our staff, in conjunction

concedes Benjamin, who is keen to use

with a client, will walk around a site

technology to protect the company’s

to document issues that need to be

exposure and risk to public liability

addressed, while also scoring how

claims by ensuring it meets the

clean an area is, ensuring that our

‘rotation’ terms of a works contract.

service is up to expectations,” says a nz .busi ne ssc h ief. com

MILLENNIUM SERVICES GROUP

190

“ IoT is allowing us to track and measure areas like bathrooms, air quality control or waste disposal…”

— David Benjamin, Chief Information Officer, Millennium Services Group

SEPTEMBER 2019

Benjamin. “For this, we partner with SafetyCulture, which provides a software solution our staff can use via a tablet or smartphone.”

Millennium also partners with Adelaide-based Kineo, which runs the company’s learning and development platform. “Keeping our staff trained and up to date on how to use these new tools in the workplace is vital,” explains Benjamin. “Our staff are spread across two countries so we need a unified method to deliver training content for them.” A time and attendance system was also introduced with the help of Ento. “It’s a workforce management solution to allow staff to clock on and off from their rostered shifts and we’ve automated and digitised that process,” explains Benjamin. “Previously it was all paper based which created a lot of waste through follow up calls, duplication, and written time sheets which can be difficult to read, but Ento can be run on a tablet and is installed at all of our sites for team members to clock on and off.”

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191

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Benjamin and his team, with the help

penetration for communication.”

of Kineo, are working hard to support.

Reliable mobile communications are

Allied to this, getting mobile internet

vital to ensure that Millennium’s plans

services to employees across a

to further utilise the Internet of Things

diverse range of sites is important to

(IoT) can be realised. “IoT is allowing

ensure infrastructure support without

us to track and measure areas like

impeding on the client’s side. “We can

bathrooms, air quality control or waste

generally deliver this through mobile

disposal… Technology is helping us to

data, which can be a challenge given

become more efficient and identify

that our staff might be below ground

areas that need attention and not just

level,” says Benjamin. “But that’s

stick to rigid rotation,” adds Benjamin.

changing. We’re currently partnering

Rather than just working with clients

with Optus, which is already rolling out

from the perspective of its service

5G mobile services offering greater

offering, Benjamin is keen for Millennium

SEPTEMBER 2019

TECHNOLOGY

Millennium Assist Developed in conjunction with our strategic partner, Circle T, all of the company’s solutions can now be managed on the client side through the Millennium Assist customer portal which offers reports on time and attendance of staff, staff rotation, metrics on how sites are patrolled, and learning and development. “It gives clients the information they need to ensure we are delivering the service, and are compliant with whatever their site requirements might be,”

asserts Chief Information Officer David Benjamin. “The traditional view was that technology was a cost, it’s a supporting function just to enable us to do our job. By developing this portal, I think we’ve f lipped that on its head to demonstrate what we can actually drive into our organisation and differentiate us from our competitors in delivering our service. And we’ve seen that in some of the contracts we’ve won recently.”

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MILLENNIUM SERVICES GROUP

“ When I joined, the business had simply outgrown the technology solutions originally put in place” 194

— David Benjamin, Chief Information Officer, Millennium Services Group

SEPTEMBER 2019

to give technology a seat at the table.

“Engaging technology earlier helps avoid missed opportunities; other potential solutions can be put forward, or a service can be delivered more efficiently,” he says. “I like to establish connections with my peers within our client organisations because for me to do my job well, and to do it better, I need to understand what they need from the services they contract with us. It’s our goal to focus more on this over the next 12 months. We’re a cleaning and security company, but we have the potential to become more than that by widening our core service offering to include technology.”

In tune with Millennium’s vision to create value where others can’t see it, Benjamin’s team is primed to take up the company’s mission and deliver more innovative solutions.

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195

196

TRANSFORMING CUSTOMER INTERACTION THROUGH DIGITAL INNOVATION WRITTEN BY

RACHAEL DAVIS SEPTEMBER 2019

PRODUCED BY

MIKE SADR

197

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S K Y C I T Y E N T E R TA I N M E N T G R O U P

Until recently, the gaming and hospitality industry has been slow in fully utilising technology.

New Zealand-based SkyCity Entertainment Group is a showcase for the digital transformation of the industry, as CIO Glen McLatchie explains

198

S

kyCity Entertainment Group is one of Australasia’s leading gaming and entertainment businesses, currently operating

five casinos, two hotels, and a host of bars and restaurants across four locations in New Zealand and Australia. Its leadership has seen a shift in the past few years, with a new and dynamic executive team. CIO Glen McLatchie joined in 2016, and CEO Graeme Stephens took the helm in 2017, while COO Michael Ahearn and CMO Liza McNally joined in Dec 17 and Jan 18 respectively – all bring new and innovative ideas to the digital future of the business.

The company’s digital transformation coincides with three new projects: the New Zealand International Convention Centre (NZICC) in Auckland, plus two luxury hotels in Auckland and Adelaide.

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S K Y C I T Y E N T E R TA I N M E N T G R O U P

“ We have replaced or upgraded just about every single key application across the group” — Glen McLatchie, CIO, SKYCITY Entertainment Group

McLatchie’s responsibility as CIO is, in short, to “lift the digital capability of the organisation to be able to respond to future innovation initiatives and growth strategies”. This has meant a complete overhaul of SkyCity’s systems, from upgrading the aged technology infrastructure, to renewing the core transactional systems all the way out to point of sale and web and mobile interactions with customers.

“The casino industry is not what I would describe as ‘tech-savvy’ in terms of transactional systems and digital

200

customer interactions,” McLatchie explains. “There is some really smart technology in the gaming sector, but when it comes to digital interactions with customers it’s been lagging.”

When McLatchie joined SkyCity in 2016, there was little infrastructure in place to deal with digital growth.

“In two years, we have done a phenomenal amount of work, progressing from a handful of heroes holding the whole thing together to scalable tech that creates a digitised platform for the future” he praises. It is this new improved technology that will make the company’s latest projects stand out.

SEPTEMBER 2019

CLICK TO WATCH : ‘SKYCITY GAME PLAN 2019’ 201 The NZICC and two luxury hotels

through a dedicated team of IT special-

represent NZ$1bn worth of capital

ists. “We have replaced or upgraded

works, and will boast technologies

just about every single key application

such as keyless room entry, in-room

across the group,” he explains, includ-

tablets allowing control from one

ing an overhaul of the supply chain

central point, broadcast quality

and financial system with Microsoft,

networks for conferences, and

and a redevelopment of point-of-sale

advanced audio-visual systems

systems through new partner, TASK

for the best possible service.

Technologies.

Partnerships with companies such

McLatchie knows that SkyCity’s

as HP, Microsoft, Palo Alto and Cisco

point-of-sale is “the main area where

have been key to improving technology

customers connect directly with us,

in SkyCity’s casinos and hotels, but

so it’s really important that we get it

McLatchie emphasises how a lot of

right”. Using TASK’s state of the art

the work has been carried out in-house

POS interface, SkyCity can learn a nz .busi ne ssc h ief. com

S K Y C I T Y E N T E R TA I N M E N T G R O U P

202

more about its customer base, providing

Yet how does a company as estab-

them with a better service. With every-

lished as SkyCity strike the balance

thing from menu flows that allow staff

between the legacy of its foundations

to cross sell or suggest substitution,

and a thriving digital transformation?

to promotional screens and ease of

A change in company culture is

reward redemption, through to cleaner

“absolutely critical,” McLatchie

and more accurate reporting, thereby

elucidates. “We have people in the

automating old manual processes.

organisation who have been doing

Customer habits, mobile terminals,

things the same way for many years,

and payment flexibility are all accessible

so we have had to go through a cultural

through professional and versatile

change to get people to understand

interfaces, and the partnership has

that technology is actually an enabler.”

been crucial to enhancing the way

McLatchie found that the best way

SkyCity now interacts with its customers.

SEPTEMBER 2019

to start was by describing “what good

looks like,” providing a frame of refer-

and as importantly a communication

ence through other successful compa-

component tied to the overall trans-

nies and sectors, and make sure

formation – all to make sure it lands

strategies are “well-articulated and

really well.

well-understood from the board down.”

“Effective change management is

Equally important is an effective

critical. Getting the operating model

change management programme,

right, ahead of implementing the

to which SkyCity has assigned a whole

technology, is key. When it’s not done

team. “Every single project has a training

well or is completely missed, projects

component, a testing component,

fail to get the take-up they need to

an operational change component,

drive benefits. It’s vital in a change

a benefits realisation component

programme that is as full as ours.”

E XE CU T I VE PRO FI LE

203

Glen McLatchie Glen joined SKYCITY in 2016 as the Chief Information Officer (CIO) and is responsible for lifting the digital capability of the organisation to be able to respond to future innovation initiatives and growth strategies. Previous to SKYCITY he was the General Manager ICT (CIO) with Meridian Energy for 6 years, where he successfully transformed and modernised their aging technology footprint and digital capability. Glen has over 25 years of experience working in and around technology, heading both Business and IT functions in executive positions across several industries.

He has held multiple senior management roles with a global focus based in Australia, the United Kingdom and France over a 13 year period with BP Oil International, and has successfully run a technology company exporting products into China, Malaysia, India and the Middle east, winning both exporter and Hi-Tech corporate of the year. He holds a Master’s of Information Systems from Swinburne University of Technology, Australia, and a Bachelor of Business studies from Massey University, New Zealand. Glen is a Board member of the Auckland charity Big Brother Big Sister.

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S K Y C I T Y E N T E R TA I N M E N T G R O U P

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SEPTEMBER 2019

NZ$831mn Approximate revenue

1996 Year founded 5,031

Approximate number of employees 205

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“ I n two years, we have done a phenomenal amount of work, progressing from a handful of heroes holding the whole thing together to tech that is best-inclass, from what I’ve seen” — Glen McLatchie, CIO, SKYCITY Entertainment Group

According to McLatchie, the coming year is the ‘year of data management and analytics and customer experience management’, which he says will deliver the real benefits behind the digital transformation. “We have worked very closely with Deloitte and Accenture respectively to ensure that we start with an operating model design before we even embark on technology choices for these critical areas of the transformation.

For example, we have a great team of people from Deloitte working with us to design the operating model for data management and analytics, including a COE structure for data management to implementing an Azure platform. These partnerships become critical to the success of what we are doing.”

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S K Y C I T Y E N T E R TA I N M E N T G R O U P

Digital transformation is evidently of paramount importance to SkyCity’s growth with McLatchie as CIO. It is, however, integral to strike a balance between digital transformation and sustainability, a feat the company has accomplished with no compromise on either part. “Our approach to being a responsible citizen is quite detailed, in terms of our corporate and social responsibility. Being a responsible host is really important to us; we do a lot of work around ensuring our players 208

are looked after, including using facial recognition technology and mobile location tracking.”

“ E ffective change management is critical. If you don’t have that in place, that’s the number one reason projects fail” — Glen McLatchie, CIO, SKYCITY Entertainment Group

SEPTEMBER 2019

SkyCity is also dedicated to environmental sustainability, pledging to be carbon neutral by 2020, with the entire leadership team already so. It insists on ethical sourcing, low emissions, reducing waste and minimising environmental impact, as “if we don’t start doing it as corporations, nothing will change”. Putting money back into the communities in which it operates is also essential for the company, with an investment total of more than NZ$4 million across four NZ SkyCity

209

trusts, and over NZ$1.6 million

a digital transformation, so I’m incred-

in sponsorships.

ibly proud of the team we’ve got here.”

The ambition of McLatchie and his

As the company embarks on its latest

team at SkyCity is evident, and their

ventures, it is this pride in driving

legacy will be that great digital

forward technology in the entertain-

transformation does not need to come

ment industry while being socially

at the expense of the heritage of

and environmentally sustainable that will

a company’s establishment, or have

ensure the continuation of its success.

a big environmental impact. McLatchie praises the dedicated team that has driven the company’s aspirations: “New Zealand is a small market, and everyone is trying to go through a nz .busi ne ssc h ief. com

210

SIGNED,SEALED & DELIVERED WITH SEALED AIR WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

STUART IRVING

SEPTEMBER 2019

211

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S E A L E D A I R C O R P O R AT I O N

HOW SEALED AIR IS AIMING TO BALANCE ITS USE OF TECHNOLOGY TO INCORPORATE SUSTAINABILITY, COST EFFECTIVENESS, SPEED AND PROTECTION FROM WAREHOUSE TO DOORSTEP

S

ealed Air’s genesis came in a moment of accidental innovation back in 1957.

Two engineers, Alfred Fielding and Marc

Chavannes, in Hawthorne, New Jersey, attempted to create a new wall covering by laminating 212

two plastic sheets with air bubbles in between.

Although their invention never caught on as interior decoration, it was later discovered as the perfect material for protecting items, starting the pop culture legacy commonly known as bubble wrap.

Fast forward to the present day, and Sealed Air’s mission has grown to help businesses succeed across the packaging space in both the food and brand protection markets.

“The underlying theme for Sealed Air today is to pick up on the sustainability pillars within the industries we serve,” explains Michael Basagre, NZ 3PL and Fulfilment Sector Leader. Our team specialises in reducing damages, cube optimisation, fulfilment velocity and enhancing the overall customer experience through better packaging design. Our innovation has always been driven SEPTEMBER 2019

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$4.5bn+ Approximate revenue

1960

Year founded

15,000

Approximate number of employees a nz .busi ne ssc h ief. com

S E A L E D A I R C O R P O R AT I O N

“ THE UNDERLYING THEME FOR SEALED AIR TODAY IS TO PICK UP ON THE SUSTAINABILITY PILLARS WITHIN THE INDUSTRIES WE SERVE”

by the market and the customers.

As a result, today’s technology has evolved around those key drivers, challenging us to re-invent how we interact with packaging, whether that be ensuring products of all shapes and sizes arrive safely to its destination or reducing food waste such as meat, fish and produce to achieve a longer shelf life.” Basagre says these innovations range from tabletop devices capable of making packaging on demand such as bubblewrap, to large, fully automated, IoT-enabled machines that require little to no human interaction. “It’s a wide

214

Michael Basagre, NZ 3PL and Fulfilment Sector Leader

spectrum, depending on the industry and the particular customer that it might be appealing to,” he adds.

The big challenge for Sealed Air is to continue to meet the changing needs of customers. “With the continued rise of e-commerce, the consumer is now demanding, if not already conditioned to more convenience, such as same day delivery, free shipping and more eco-friendly or sustainable packaging,” says Basagre. “That wave of customer influence is driving us back to the heart of the supply chain to reinvent how retailers and warehouses package their orders with the customer in mind.

SEPTEMBER 2019

CLICK TO WATCH : ‘NEW AIR I.B .® NANO PACKING APPLICATIONS’ 215 We’re trying to break the traditional

share the same forward-thinking ethos.

mentality of the warehousing and

“In particular, the solutions we are

fulfilment centres we deal with. There

seeing today, that are really taking off

has been a focus on traditional

are in that sustainability area.” he says.

processes when it comes to packag-

“Businesses choose Sealed Air

ing, especially in the logistics industry

because our solutions match their

here in New Zealand. However, as the

values as a company. My role has

demands of customers increase such

traditionally been focused on the

as same day delivery, so too does the

backend of that supply chain where

pressure to fulfil those orders, which

packaging meets a person packing an

means non-value-added activity in the

order, but with the rise of sustainability,

supply chain must be carefully reviewed

e-commerce and enhanced customer

with a more customer centric approach.”

experience, my role has very much

Basagre believes customers are now choosing retailers and brands who

shifted towards a more holistic view, a view that connects the person packing a nz .busi ne ssc h ief. com

S E A L E D A I R C O R P O R AT I O N

216

the order with the customer receiving

wrap. The process may look like this:

the order.

the packer goes to a bulky storage

“I now focus on ensuring that the

area to cut and collect this traditional

packaging benefits everyone across

bubble wrap before taking it back to

the supply chain process, and that

the pack bench to wrap around three

means being responsible for communi-

to four times around the fragile order

cating all the health and safety benefits

before taping and placing into a carton.

of our solutions as well as how it will

However, this process can be im-

help drive brand awareness and loyalty

proved by one of our machines that

for a retailer,� Basagre continues. “For

produces bubble wrap on demand,

example, say a customer orders a

called New Air iB. This means it can

fragile item that is prone to getting

easily eliminate the unnecessary

damaged, a packer will aim to protect

process of walking to cut and collect

that order by using traditional bubble

bulky bubble wrap, and because our

SEPTEMBER 2019

film is perforated there is no need for

sufficient for the product it is protect-

a knife, add to the fact that this

ing, meaning it’s not over packed. And,

on-demand Bubblewrap is much

because it was packed much more

stronger than traditional bubble wrap

quickly, the customer has a better

meaning less layers are required to

chance of getting their order in time,

achieve the same amount of protection.

enhancing the unboxing experience

“Overall this improved process

and the overall customer experience

reduces the manual aspect found in

with the retailer.” Such streamlining

traditional bubble wrap, by improving

strikes the right note for sustainability

the packer’s performance and

targets as, from a purely packaging

eliminating the potential health and

perspective, Sealed Air’s innovation is

safety risks such as knife cuts or

focused on helping businesses reduce

fatigue,” says Basagre. “Now, when the

the amount of packaging they use

customer receives their order, they are

without compromising on integrity as

now receiving packaging that is

per the example provided by Basagre.

E XE CU T I VE PRO FI LE

Michael Basagre Michael Basagre prides himself on being able to help others succeed. “Packaging is just a by-product of that conversation,” he says. “If I can have a conversation with a person that allows them to become better versions of themselves, whether that’s using our packaging more efficiently, or providing insights to a better approach to recycling, then that’s what success looks like in this space. If you are genuinely interested in helping others succeed by enabling them to unearth their potential, then the chances that you will succeed becomes greater.”

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S E A L E D A I R C O R P O R AT I O N

Sealed Air’s approach to reverse logistics is also addressing the waste hierarchy, while keeping the company on target to meet its sustainability goals with materials used on demand.

“Many of our protective packaging materials can be reused,” confirms Basagre, highlighting the ability to use the same packaging for product returns via the supply chain or re-forwarding orders to other destinations.

“What we’re also seeing in the B2B supply chain is this active awareness to reuse our packaging materials

It’s how businesses get along.

Leading the revolution in Distribution Centres to create world class automated warehouse conveyor systems.

219 instead of disposing them. Most of

“ I’VE EXPERIENCED THAT PEOPLE ARE MOTIVATED TO DO THE RIGHT THING, IF ITS ACCESSIBLE AND EASY TO DO”

these solutions are strong enough to be used multiple times in that supply chain whether that is return logistics or reusing for new order.”

This commitment to reuse is echoed in Sealed Air’s partnership with Soft Plastics, a New Zealand recycling initiative. “We provide financial assistance around drop-off points so that they can recycle a lot of our soft plastics – our clear mailer bags, bubble

Michael Basagre, NZ 3PL and Fulfilment Sector Leader

wrap bags and protective packaging plastics can be put back through the system to be regrinded, reprocessed, a nz .busi ne ssc h ief. com

S E A L E D A I R C O R P O R AT I O N

and reused to make other plastics.

In this particular case, here in New Zealand, it’s being transformed into plastic fence posts by an innovative company called Future Post” says Basagre. “Future post in particular is aiming to replace traditional timber fence posts found in the agriculture industry by converting the plastics into post, which means they minimise plastics ending up in landfill.” Sealed Air also works with Astron Plastics, which regrinds plastic material for much of the New Zealand market. “We send our 220

off cuts to Astron and they reprocess it for us to purchase back, in which we are then able to re-use in our own processing plant here in Auckland,” he says. “We’re trying to ensure we have that closed-loop process as we aim for a more circular economy.”

Sealed Air carried out a survey back in 2014 around ecommerce and online orders, and found that 58% of consumers are more conscious about packaging materials than they were five years previously. Meanwhile, 77% of consumers believe that packaging should reflect a retailer’s environmental values.

Basagre says the study’s insights drove many back-of-house changes.

SEPTEMBER 2019

“Part of my role is to link, the front-ofhouse with the back-of-house operations and make sure retailers are aware of what their packaging is reflecting to their customers and market. I’m finding more and more that retailers are looking for environmentally friendly or more sustainable packaging to meet the growing concern of their customers and the market they serve. Along with helping connect packaging with people, my role is to also help educate and ensure that decisions on packaging materials or processes involving packaging are made with as much information as possible, and that often includes advising decision makers on the trade-offs such as any extra costs, changes to packing process, performance of the packaging materials and of course the environmental impact.

I believe it is equally important to understand these trade-offs as much as it is about choosing the right packaging material. What I am finding more and more of is - if the packaging material is too hard to recycle, or the packaging is perceived to not be environmentally friendly, then the chances of it being put through the correct recycling system becomes less a nz .busi ne ssc h ief. com

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S E A L E D A I R C O R P O R AT I O N

TECHNOLOGY

222

“Our technology is seen more as a value add to the entire supply chain as opposed to one element, which is traditionally focused on getting the orders out the door quicker,” says Sealed Air’s Michael Basagre, NZ 3PL and Fulfilment Sector Leader. The company’s e-Cube void-reduction system automatically creates rightsized packaging for a variety of industries – ideal for businesses shipping between 300 and 3,000 boxes per day. The system measures the height of the contents, scores and folds excess corrugated material and then seals the carton. “It takes the guesswork out of the equation for our customers, while reducing the amount of labour required in the packing

SEPTEMBER 2019

process,” adds Basagre. Sealed Air also offers a powerful solution for the high-volume e-commerce market. The FloWrap system produces customised, ready-to-ship, rightsized polybags. The FloWrap automated platform can produce packs at up to 30 bags per minute, “It eliminates human error as the packer doesn’t have to calculate which size bag should I use, the FloWrap enables that for them,” says Basagre. Customers can choose their best match from options including film length, width and height, and length.

A powerful solution for the high-volume e-commerce market, the FloWrap system produces customised, ready-toship, rightsized polybags.

likely. I’ve experienced that people are

supply chain, then there will be no raw

motivated to do the right thing, if its

materials for us to recycle.”

accessible and easy to do.”

Sealed Air’s 2025 Sustainability and

Collaboration is key to drive educational awareness in the sustainability

Plastics Pledge sets ambitious goals for

area, he believes. “The everyday

recycling, showing the company is keen

consumer is wanting to do their part to

to lead by working towards innovative

help reduce waste, let alone eliminate

packaging solutions that are 100%

plastics waste. So, it’s important that

recyclable or reusable. The challenge is

we also focus on recycling and

to eliminate plastic waste and achieve a

reducing as well continuing to investi-

target of 50% average recycled content

gate and develop more alternative

across all packaging solutions, 60% of

options. We need to bring to light that

which is post-consumer recycled

not all plastics are evil and not one

content. Stressing the difficulty of this,

packaging material is best fit for every

Basagre warns: “If we can’t get

application. For example, if we can

post-consumer plastics through the

extend the shelf life of red meat using

a nz .busi ne ssc h ief. com

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S E A L E D A I R C O R P O R AT I O N

Sealed Air’s proven Cryovac packaging material, and enable that piece of meat to see another day and increase its chances of being purchased and consumed rather than thrown away, then that to me is being more sustainable. Or, if we can prevent fragile items from getting damaged by focusing on packaging performance, such as stronger protective bubble wrap, then the chances of that order turning up in one piece improves drastically, whereas if the wrong packaging material was used and it ended up 224

getting damaged then that’s the worst sustainable outcome that could happen because now you have to re-send, re-deliver and re-package

is protective paper packaging was

that order which is then contributing

once thought of as a dying breed.

to the carbon footprint.

It’s great that they are trending now

“Yes, the rise of more eco-friendly

because it means consumers are more

packaging is increasing and currently

likely to recycle paper, which means

it tends to gravitate towards paper-

our paper-based solutions are

based options, but it is also important

empowering consumers to recycle

to remember the purpose of the

more often. At the end of the day

packaging material and the applica-

sustainable packaging doesn’t have

tion,” Basagre states. “The great thing

a silver bullet, but it does have good

is we have both plastic and paper

intentions and we are for discussing,

alternatives to help provide brands and

informing and collaborating on the

customers the choice based on values

best packaging solutions”.

and purpose. What’s really interesting SEPTEMBER 2019

Looking to the future, Basagre can

225

see automation becoming more

mental hump that they can transform

accessible to the New Zealand market,

their business using this technology

and not just for the big guys. “SMEs are

without the burden of having to be the

reaching out to us to try and future

a large player to access this technol-

proof their businesses. We’re having

ogy, instead, they can see that our

more conversations now around how

technology could actually help enable

to use technology to build their

them to become the next large retailer,

business, grow their customer base

which is great to see.”

by getting orders out the door more quickly, and become more sustainable.

I’m seeing a breakdown in the mindset that automation in the packaging space is exclusive to larger customers. It’s great to see they are getting over the a nz .busi ne ssc h ief. com

226

Standard Chartered: Spearheading a cutting-edge virtual bank and a brand-new operating model WRITTEN BY

LAURA MULLAN PRODUCED BY

NATHAN HOLMES

SEPTEMBER 2019

227

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S TA N D A R D C H A R T E R E D

With a ground-breaking virtual bank in the pipeline, Standard Chartered is showing it’s a true digital disruptor

‘

A

re you a leader or a laggard? Will you disrupt your sector or will you be disrupted?’ These are just some of the pressing questions

facing businesses across the globe, particularly in the fast-moving fintech sector. On the road ahead, it’s clear that innovation is set to maintain its blistering pace in the banking industry. In fact, Gartner has 228

even warned that digitisation will ‘make most heritage financial firms irrelevant’ by 2030. For many businesses, it’s a matter of pushing yourself to evolve before someone else does – and that’s exactly what’s on the cards for financial titan Standard Chartered.

With over a century’s worth of experience in the banking sector, Standard Chartered has a presence in 60 countries as well as more than 86,000 employees to its name. It has deep roots in the burgeoning Asian, African and Middle Eastern markets and as a result, Samir Subberwal, Managing Director & Regional Head of Retail Banking, Greater China & North Asia, contends the firm is poised for vast growth. “Whether it’s in Taiwan or India, China or Hong Kong, we are present in areas where the middle class and wealth are growing,” he enthuses. “We’ve played to our strengths in the SEPTEMBER 2019

229

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S TA N D A R D C H A R T E R E D

“ Whether it’s in Taiwan or India, China or Hong Kong, we are present in areas where the middle class and wealth is growing” — Samir Subberwal, Managing Director & Regional Head, Retail Banking, Greater China & North Asia

market and we have aligned ourselves as a bank of choice for the affluent and emerging affluent.”

Speaking in the company’s sleek office in Hong Kong – a city hailed as one of the top three financial hubs in the world – Samir points out what the city’s growth has meant for the company since it first arrived 160 years ago. “We are a trusted partner for the people of Hong Kong,” he explains.

“We have over 70 branches in Hong Kong and we are one of only three note-issuing banks here.” Not one to rest on its laurels, Standard Chartered

230

SEPTEMBER 2019

CLICK TO WATCH : ‘SAMIR SUBBERWAL, REGIONAL HEAD, RETAIL BANKING, GREATER CHINA AND NORTH ASIA, ON UNIQUE FOOTPRINT AND DIGITAL ASPIRATION’ 231 is acutely aware that, in the banking world, you need to innovate constantly if you want to keep up with the competition.

The bank has taken this in its stride and decisively doubled down on its technology capabilities with its ambitious ‘Refresh Strategy’ that brings technological innovation to the fore. “As part of our enhancements, we launched a new chatbot and we’ve launched a new FX

Deniz Güven, CEO of the Virtual Bank by Standard Chartered with Samir Subberwal, Managing Director & Regional Head of Retail Banking, Greater China & North Asia

capability across the region. On top of this, we launched a new mobile funds capability and we’re revamping our mobile banking platform for our customers,” lists Samir. “We also launched QR cash, where a nz .busi ne ssc h ief. com

“Using truly cloud native technology creates a completely different speed of development, allowing banks to launch and innovate far quicker.�

Paul Taylor CEO, Thought Machine

What the Standard Chartered team have been able to do in a few short months is quite unprecedented in banking.

They have set out to create one of the first, truly, virtual banks in Hong Kong.

Unwilling to wait for potential disruptors to enter the market, they are putting their future into their own hands.

Unwilling to play catch up, they are reimagining their entire business model. They are playing to win.

And we’re proud they selected Thought Machine as the core banking engine.

Learn more about Thought Machine

Follow us on

S TA N D A R D C H A R T E R E D

CLICK TO WATCH : ‘DENIZ GÜVEN, CEO, VIRTUAL BANK ON ON WHY STANDARD CHARTERED IS LAUNCHING A VIRTUAL BANK IN HONG KONG’ 234 you can withdraw cash out of an

shouldn’t anxiously wait for new

ATM using a QR code rather than

innovative products and services that

a card, and we rolled out real-time

could eat into their market share.

onboarding for customers in India

Instead, they should create their own

and Singapore last year.”

disruptive offerings – that way, if it

Yet perhaps the crowning jewel in

cannibalises the old proposition they

Standard Chartered’s digital strategy

won’t lose their market share. This is

is its cutting-edge virtual bank. In a

precisely what Standard Chartered

recent blog post, Deniz Güven, CEO

has done, setting out to create one

of the Virtual Bank by Standard

of the first virtual banks in Hong Kong

Chartered, urged businesses: “Canni-

which will act as a separate entity

balise yourself, otherwise, someone else

to Standard Chartered. It’s both a

will! You can delay the deadline but don’t

defensive and offensive move; with

be too late to build a ‘New Operating

a standalone virtual bank, Standard

Model’.” In essence, businesses

Chartered hopes to defend against

SEPTEMBER 2019

E XE CU T I VE PRO FI LE

Samir Subberwal Samir Subberwal is currently Managing Director & Regional Head, Retail Banking, Greater China & North Asia at Standard Chartered Bank. He has worked for the bank for over 20 years. In his role as Managing Director, Samir is responsible for developing business strategies, delivering financial performance, improving business efficiency, driving digital agendas, and enhancing organisational efficiency in the region. He is also responsible for ensuring opportunities to enhance shareholder value are identified through organisational and external growth with the optimal allocation of resources.

Prior to his current role, he was the Managing Director & Head, Retail Banking, Hong Kong. Samir was responsible for leading the overall development, implementation and delivery of a distinctive Retail Banking busines strategy and financial plans to ensure the businesses are managed in alignment with Group and regional policies and risk parameters. Samir originally joined the Group as an International Graduate and has since held a variety of increasingly senior roles across five different geographies over the past 20 years. In these markets, he has held roles across sales, business development product management & wealth management.

Samir was born in Mumbai, India, and gained an MBA in the USA. He is married with two daughters.

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235

Banks reinvent themselves – GFT crafts the solutions to make this possible

A GFT is enabling Standard Chartered Bank to rapidly prepare for the launch of the Virtual Bank in Hong Kong. In this interview, Christopher Ortiz, Managing Director at GFT, speaks about the key role played by this pioneering technology consultancy.

How is GFT participating in the build of the Virtual Bank?

GFT has been working alongside Standard Chartered on this project from its inception in 2018. Today, our 25+ strong team dedicated to this project represents around 10% of the total number of people working on the launch of the Virtual Bank.

As a digitalisation and transformation software engineering consultancy, GFT primarily drives three areas in this project: DevOps / infrastructure, back-end development and missioncritical data infrastructure.

Why was GFT selected for this project?

GFT brings to the table a deep understanding of technology (in this case cloud technology), methodology (Agile and DevOps development) and financial services, which is a rare combination.

For over 30 years, we have been working with the largest tier 1 retail banks, investment banks and asset management companies to apply technology solutions to help solve their specific business challenges. Our consultants are certified in AWS, GCP and Azure cloud platforms. The teams have ensured the successful launch of various virtual banks and delivered around the world.

To find out more about how GFT can help you to transform your business, contact: > florian.becker@gft.com

About GFT A blog.gft.com twitter.com/gft_en linkedin.com/company/gft-group facebook.com/GFTGroup >gft.com

GFT is driving the digital transformation of the world’s leading companies. With strong consulting and implementation skills across all aspects of pioneering technologies, GFT’s clients gain faster access to new IT applications and business models.

CLICK TO WATCH : ‘SAMIR SUBBERWAL, REGIONAL HEAD, RETAIL BANKING, GREATER CHINA AND NORTH ASIA, ON SAMIR ON SUCCEEDING WITH PARTNERS’ 237 potential disruptors and proactively

a bank, apply and get personalised

take on incumbents in the fiercely

financial services on the go, in real time.

competitive banking market.

By pioneering a new financial revolution

Teaming up with travel-focused

and disrupting its very own business,

fintech Ctrip Finance, telecoms

Standard Chartered sees its virtual bank

provider HKT and its parent company

as the ticket to banking success because

PCCW, the bank has forged a new joint

not only does it offer a new proposition

venture. The JV in question, SC Digital

to the market, it’s also championing

Solutions Limited, has been granted a

a brand-new operating model.

licence by the Hong Kong Monetary

Deniz is well-equipped to lead the

Authority (HKMA) to create one of the

ambitious new virtual bank; in a

first virtual banks in the region. Virtual

previous role, working at Turkey’s

banking goes a step further than current

GarantiBank, he helped to spearhead

online banking services, enabling

the first mobile-only bank in the

customers to start a relationship with

country, iGaranti. He’s keen to stress a nz .busi ne ssc h ief. com

S TA N D A R D C H A R T E R E D

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SEPTEMBER 2019

“ Many people talk virtual banks, neo banks, challenger banks and digital banks, but we like to describe how we’re building a future operating model for Standard Chartered” — Deniz Güven, CEO and Executive Director of Virtual Bank by Standard Chartered

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239

Read more about our work with Standard Chartered Bank in this issue

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E XE CU T I VE PRO FI LE

Deniz Güven Deniz is an internationally recognised leader in driving digital transformations and bringing new digital banking experiences to audiences globally. As the CEO of the virtual bank by Standard Chartered Bank, Hong Kong, Deniz leads the team in building a smart bank to solve clients’ pain points with real digital services. The new banking model focuses on financial inclusion and fostering dynamic partnerships to create a comprehensive digital ecosystem.

Deniz joined Standard Chartered in 2017 as the Global Head, Design and Client Experience, where he oversaw client journey and optimizations, digital wealth, and collaborations with tech firms and start-ups.

Prior to joining Standard Chartered, Deniz served as the Senior Vice President at BBVA Group’s Garanti Bank in Turkey. During his role at Garanti, Deniz was responsible for end-to-end digital assets, as well as iGaranti the first mobile only bank in Turkey. Deniz played an important role which enabled Garanti to reach 5 million active digital customers and to grow their market share in Turkey. Deniz holds a Bachelor’s Degree in New Media and Communications from Marmara University and an MBA from Istanbul Bilgi University.

In addition to being a technology enthusiast, he enjoys yoga, writing and supporting the Besiktas Football Club.

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S TA N D A R D C H A R T E R E D

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that while there are many so-called digital banks in the market, Standard Chartered’s virtual bank is radically reimagining the entire business model.

“Many people talk virtual banks, neo banks, challenger banks and digital banks, but we like to describe how we’re building a future operating model for Standard Chartered,” explains Deniz. “Some businesses create a mobile platform, push marketing and call it a challenger bank. We, however, want to rebuild and recreate our business model.”

SEPTEMBER 2019

This is no mean feat. After all, Standard Chartered’s Virtual Bank will see it build a new tech stack from scratch, become a real cloud-based bank, redefine the customer onboarding model and much more. Before the bank could begin tackling these massive hurdles, it first had to get its license from the Hong Kong Money Authority. At the start, Deniz’ team consisted of only 10 people who worked around the clock to finalise the banking application. “It was an important milestone for the bank,” he says. Now, with the license granted, the virtual bank is expected to commence early 2020 and will act as a wholly separate entity from Standard Chartered. “It’s a separate bank but our relationship with Standard Chartered is really close,” he notes. Samir echoes this sentiment, adding that while Standard Chartered has “sharpened its focus on the affluent and emerging affluent”, the virtual bank is allowing it to “resonate with younger customers such as millennials”.

This is not the only partnership backing up the virtual bank. “As part of the joint venture we have partnered with PCCW and HKT, which, with more a nz .busi ne ssc h ief. com

243

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S TAT S

than 4 million customers, is the biggest mobile operator in Hong Kong,” says

• Oldest bank in Hong Kong, operating since 1859

Samir. “We’ve also partnered with Trip.

• One of three (and first) note issuing Banks in Hong Kong

Asia. I don’t believe we can provide all

• Over 6,000 employees in Hong Kong

ships are a key part of our strategy.”

• First batch to receive a virtual bank license in March 2019

com, the biggest online travel agent in the services that customers are looking for on our own, and so partnerJoint venture partners are just the beginning, says Deniz, noting that, when building a new bank from scratch, finding the right vendors is critical.

“We selected Thought Machine as our powerful product engine and another important partnership has been with our processor provider Paymentology.

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S TA N D A R D C H A R T E R E D

C O M PA N Y FACT S

• Standard Chartered is listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India • 86,000 employees • Presence in 60 markets • More than 160 years in business

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• Over 1,000 branches worldwide • Its employees come from 125 countries

SEPTEMBER 2019

Elsewhere, we’re working with Oracle and using their Netsuite programme.

We’re also partnering with FICO to help us create our credit engine,” he says.

Getting the right talent on board is critical for a digitally-savvy operation and so the bank’s partnerships with Vacuumlabs and GFT have also been fruitful. “They’re providing us with experienced software engineers and developers who are helping us build the bank from the ground up,” adds Deniz.

The virtual bank has come a long way since its fledgling years. Its team is now over 100 strong, with 60% local staff and the remaining 40% coming from all over the globe. “We’re trying to get a blend of different people because culture doesn’t come from the top down – it has to grow organically,” Güven says.

“We hope to hire around 50 people in the next six or nine months.”

As well as getting its license, forging meaningful partnerships and hiring the right talent, Deniz and his team realised they needed to get a real glimpse of the virtual bank’s customers wants and needs. The bank conducted thorough research in the belief that if they could identify real pain points, then they could bring something real to the a nz .busi ne ssc h ief. com

247

THE NEW WORLD OF VIRTUAL BANKS: PROFITABLE GROWTH WILL DEFINE SUCCESS Progressive regulation is creating open and collaborative ecosystems with both banks and customers moving up the technology maturity scale. With customer sentiment ripe for a new way of banking, virtual banks need to grow at scale, leveraging open, cloud-based platforms.

As A Customer Moves Across Lifecycle, The Satisfaction Drops And Digital Engagement Drops Satisfaction Level

While a perfect storm supporting the growth of virtual banks is brewing, success is not guaranteed unless new banks are able to transform into a data-driven, high-performance and profitable organization.

Exceeding Your Customer’s Expectations Consistently and Across the Financial Lifecycle Virtual banks globally have done well in the on-boarding process but must prove themselves across the financial lifecycle as they expand into more complex product areas such as SME Banking, Mortgages, and Business Banking.

A global survey conducted by Oracle showed that existing customers of traditional incumbent banks are ready for churn not at the beginning of the lifecycle but when more complexity appears in the relationship. This is where the rubber meets the road.

Virtual banks need to have a nimble, friction-free approach across processes, and an ability to act on customer data insights to elevate the overall service experience.

Origination

Payments & Transfers

Personal Loans

69%

30%

want their entire financial lifecycle on digital channels.

are open to trying a virtual bank

Home Loans

Investment & Financing

Source: Oracle Report - The New Digital Demand in Retail Banking

3 Critical Aspects of Running a Virtual Bank Using Data as a Core Asset Across the Business Virtual banks can leverage data insights via agile technology stacks to offer the customer unique personalization. To grow market share and reduce churn, it is critical to implement an analytical architecture and automate using artificial intelligence and machine learning. To ensure long-term profitability, data-driven tools should be used to optimize on capital allocation, customer data management and to mitigate risks.

1

Enable the Strategic Role of CFOs & Customer-facing Teams CFOs have increased responsibility for providing data-driven business enablement: 40% of banking CFOs say they need to provide proactive analysis of future business scenarios.

Also, 66% of global banking executives consider aligning financial performance and risk data very important or critical to success. A common analytics platform helps give a real-time picture of a bank’s business and aligns finance, risk and performance management strategies under the same data-decisioning engine and platform.

2

Enable Regulatory & Finance Crime Compliance Anti-Money Laundering (AML) technologies like graph analytics and machine learning, applied to histories of transactional data, can help virtual banks curtail criminal flows of capital that put their customers at risk. With the ever increasingly complex business and regulatory landscape, virtual banks need to make use of Know Your Customer (KYC), risk or compliance data associated with running a new bank to gain business insight.

3

Drive Ecosystems Partnerships The ability to tie up options for eCommerce, transport, lifestyle and payment all in one seamless digital banking experience is critical. Oracle is enabling virtual banks to jumpstart such initiatives with more than 1600 ready to deploy Oracle Banking APIs. Virtual banks can scale and react with speed and agility to incorporate new products and processes onto their platform and easily connect with third-party products — offering more choices to the end user.

Venky Srinivasan, Group Vice President, Sales, Asia Pacific and Japan, Oracle Financial Services venky.srinivasan@oracle.com https://www.linkedin.com/in/venkys1/

The new wave of virtual banks will need to journey through different stages of ongoing adaptation in the bid for growth and profitability, greater customer traction and market share. Oracle is assisting banks in redesigning the customer journey right from the API strategy, front-end customer-facing applications to the back-end rails of modern and digital core platforms. The result is better digital services that boost customer value and understanding their needs more deeply across the financial lifecycle.

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table. “Ethnographic research was so important to the project. We reached out to 2,000 customers from different segments and different classes who had different behaviours and passions,” explains Deniz. “This bank is going to be a service-led bank instead of a product-led one. Therefore, we tried really hard to understand our customers’ pain points so that we could differentiate ourselves in the market and help them.”

“ We plan to start by acquiring ‘heart share’ with Hong Kong clients before building up market share. When people start to talk, recommend, share news, and get excited about our services and offering – that will be the biggest prize for us” — Deniz Güven, CEO and Executive Director of Virtual Bank by Standard Chartered

Deniz and his team are maintaining a consistent focus on customer a nz .busi ne ssc h ief. com

S TA N D A R D C H A R T E R E D

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CLICK TO WATCH : ‘DENIZ GÜVEN, CEO, VIRTUAL BANK, ON ‘FUTURE OPERATING MODEL’’ SEPTEMBER 2019

Samir Subberwal, Deniz Güven, Mary Huen (CEO of Standard Chartered Bank in Hong Kong, Chairman of Virtual Bank by Standard Chartered) Zhe Wang (Head of Overseas Business, Ctrip Finance) Janet Feng (CEO of Ctrip Finance and on the board of the Virtual Bank by Standard Chartered) Monita Leung (Head of Financial Services, HKT) Susanna Hui (Group Managing Director of HKT, and on the board of the Virtual Bank by Standard Chartered)

251

centricity as the virtual bank’s launch

impressive scrum boards decorate the

draws closer. “Our aim is to bring the

walls and, overlooking over the city’s

best customer experience and digital

impressive skyline, the firm has

banking services to Hong Kong. We

positioned itself in the heart of Hong

plan to start by acquiring ‘heart share’

Kong’s bustling financial hub. The city’s

with Hong Kong clients before building

banking market is a dynamic and

up market share. When people start to

advanced one and, with online banking

talk, recommend, share news, and get

use only set to rise, the virtual bank

excited about our services and offering

is getting ready to make its mark.

– that will be the biggest prize for us,” he says – and with a palpable sense of drive in the air it seems this is well within grasp. The virtual bank’s office is testament to its high ambitions; a nz .busi ne ssc h ief. com

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Sunshine Insurance: accelerating digital transformation through AI WRITTEN BY

AMBER DONOVAN-STEVENS PRODUCED BY

KRISTOFER PALMER

SEPTEMBER 2019

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SUNSHINE INSURANCE GROUP

CDO of P&C and VP of the Technology Center of Intelligence, Dong Li, shares how Sunshine Insurance has maintained its competitive edge through its technology strategy

S

unshine Insurance Group is the seventh largest insurance company in China.

One of its subsidiaries, Sunshine P&C

Insurance Co., has won a number of awards under the leadership of its Chief Data Officer and the Group’s Vice-President of the Technology Center of Intelligence, Dong Li. In late 2018, the company earned the prestigious 254

award for its ‘claim management through technology’ project, which was granted by Insurance Association of China (IAC). “In that project, AI was implemented to classify ID cards, receipts and other documents required for claim submissions and handling, and to evaluate vehicle damage levels, all through our own Optical Character Recognition (OCR) system and a partner’s image recognition algorithms,” shares Li. Another significant award achieved by the company was the ‘intelligent auto insurance pricing platform,’ which was granted

by China Information Association. “In that project, big data predictive models were developed through machine learning (ML) to reduce thousands of customers’ external data dimensions,” he explains.

“The models came up with more accurate predictions of auto loss ratios, enabling differentiated pricing SEPTEMBER 2019

255

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and avoidance of adverse selection.

latest data technologies, with

I am very proud of leading a group of

a particular focus on the advance-

talented people to achieve milestones

ments of ML, deep learning (DL)

of those projects that have earned

and AI. “We have great ambition

significant awards and industry-wide

to innovate and grow our business

recognition.”

through the use of digital transforma-

Li was originally hired to lead Sunshine P&C Insurance Company’s big data applications, later being assigned to

tions and data technology including Machine Learning and AI,” he says.

Li emphasises the need for

lead its IT and digital transformation.

a long-term technology plan, as it

By the beginning of 2019, he was

reduces costs, appeals to a younger

appointed to head efforts in the field

generation, and meets the growing

of big data applications and AI execution

demands of customers in the digital

across all subsidiaries of Sunshine

age. He also reiterates the power of

Insurance Group. As Sunshine P&C

innovation in technology for streamlin-

Chief Data Officer, he is responsible

ing the workloads of employees,

for the testing and deployment of the

something that has been accoma nz .busi ne ssc h ief. com

257

SUNSHINE INSURANCE GROUP

258

plished at Sunshine P&C Insurance

According to Li, the app connects

Company through the creation of

to WeChat, easing communication

an app for mobile underwriting. “The

between employees and customers,

app allows employees to study new

and enabling service transactions.

products online, underwrite policies

“For example,” he says, “during the

for new customers, manage existing

process of auto claims, we use WeChat

customers’ needs, monitor and track

as an entry point to record accident

the status of claims as well as send

scenes, take pictures of damaged

greetings on holidays or on customers’

areas on vehicles and vehicle plates,

birthdays,” he says, also pointing out

audio-record descriptions of accidents,

that the app can be used by employees

and listen to guidance messages from

to track the productivity and perfor-

our claim center. The collected data

mance of coworkers in order to

is transferred to our claim center,

motivate through friendly competition.

where claim staff or AI can further

SEPTEMBER 2019

E XE CU T I VE PRO FI LE

Dr. Dong Li With an MBA, Dr. Dong Li is a CDO with a scientist’s background, artist’s mindset and collaborative cross-function and crosscontinent senior executive management experience in global companies across the financial services, insurance, retail and manufacturing industry. He is a multidisciplinary leader who excels at empowerment of large teams, strategic management of data technology resources and close partnering with marketing, distribution, sales, risk control and customer service operations as well as external vendors to develop holistic digital transformation solutions (BI, Advanced Analytics and AI applications) for business, and manage committed relationships that drive execution. Dr.Li has the following unique qualifications: Specialised in leading enterprise IT teams, digital transformation and big data or AI applications, with over 10 year’s practice in machine learning, data management and strategic data applications across all business functions to improve revenues and reduce risks.

Knowledgeable in auto, financial service, retail and insurance industry with deep experience to manage clients and deliver projects in customer life-cycle management (customer acquisition, insurance pricing, cross-sale or up-sale recommendation, customer services & retention, anti-fraud operations.

US/China Fortune-500 companies’ management experience: strategic product planning, financial analysis, analytics consulting, cross-function coordination, database marketing, investment analysis, computer-aided engineering.

10 technical publications in international journals and 10 technical publications in Chinese academic journals.

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SUNSHINE INSURANCE GROUP

260

SEPTEMBER 2019

$4.3bn Approximate revenue

2005

Year founded

10,000+

Approximate number of employees 261

a nz .busi ne ssc h ief. com

“ Our philosophy is to have a strategic plan and solid execution” — Dong Li, CDO at Sunshine P&C Insurance Co.; VP of Technology Center of Intelligence at Sunshine Insurance Group

process the information for subsequent actions.” In addition to this, Sunshine has an internal team dedicated to the development of image recognition products. “My team researched available open source deep learning algorithms for our own OCR system development, and ended up selecting Faster RCNN and CRNN in TensorFlow framework. Our own OCR product has beaten available products on the market, and has achieved 95-98% recognition accuracy

KIT smart your business with AI We provide total AI solutions for financial companies and have deep understanding of the industry. Products include Intelligence Knowledge Management System and Intelligent Customer Service System.

Learn More Contact Us

in real world business situations.”

the administrative aspect of this role

The streamlining of services

may at times be arduous, as follow-up

particularly extends to the company’s

phone calls often must be timely.

telesales department, particularly

“Because of the content-confined and

when it comes to the overall wellbeing

script-structured nature of the job, this

of employees, says Li. Employees

type of work can be done by artificial

in this department face mounting

intelligence through ASR+TTS+NLP.

pressures from several angles: lack

The applications of AI in these situa-

of training and assistance, low

tions led to one big effort for the teams

productivity and therefore a lower

I am managing at Sunshine Insurance

income. This has resulted in a high

Group. We acquired ASR+TTS

staff turnover, with many resignations

capabilities by partnering with an

coming after three months’ employ-

outside tech vendor, we also partnered

ment, causing the cost to sales ratio

with another NLP vendor to develop

to skyrocket. “If we could use AI to

our first prototype of AI Tutoring Robot

enable offline training or real-time

and AI Sales Assistant, already in

online sales assistance with telesales

production soon.”

reps to improve their sales pitch,

Li also says that the team is honing

before or during their sales sessions,

its own NLP skills by building an internal

it would help improve the success rate

NLP team that can develop a first-gen-

and wellbeing of our employees in

eration robot in customer services and

telesales,” Li says. In addition,

telesales. This will aim to improve the a nz .busi ne ssc h ief. com

263

SUNSHINE INSURANCE GROUP

“ In today’s business world, we need diverse partnerships to complement our strengths in technology innovation”

264

— Dong Li, CDO at Sunshine P&C Insurance Co.; VP of Technology Center of Intelligence at Sunshine Insurance Group speed and accuracy of the telesales

components required to build our

services at a lower cost. While

own NLP system from vendors such

Sunshine P&C Insurance is continu-

as Knowology.

ously becoming more self-sufficient

“At Sunshine P&C Insurance Com-

in its AI innovations, there are vendors

pany, our philosophy is to have a

that are key to this transformation:

strategic plan and solid execution.

iSoftStone and Knowology. “In today’s

Our company is culturally rooted in

business world we need diverse

innovation given its history of rapid

partnerships to complement our

growth since its birth. Our top leaders

strengths in technology innovation.

believe in tech transformation leading

In most digital system development,

to future success.” At Sunshine P&C

we either leveraged external technical

Insurance Company, executing change

expertise, or contracted external

is a straightforward process. Should

technical staff from vendors such

any challenges in communicating

as iSoftStone, or we buy technology

change arise, company leaders and

SEPTEMBER 2019

265 executives meet on a shop floor level

service industry, where transactions,

to ensure transparency in how the

services and fraud-detection can

technological transformation will

be managed in real-time and more

benefit the entirety of the company.

precisely. AI will be more widely applied in replacing repeated and

A BRIGHT FUTURE

simple parts of jobs done previously

As Sunshine P&C Insurance Company

by people, in order to improve opera-

moves forward, Li hopes that applica-

tional efficiency and accuracy.�

tions of AI will only grow and notes that the international, cross-industry acceleration of technology is gaining momentum. “I hope that, within the foreseeable future, we will be able to implement next-generation AI algorithms and renovate the whole financial a nz .busi ne ssc h ief. com

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Manulife: harnessing the power of change WRITTEN BY

MATT HIGH PRODUCED BY

NATHAN HOLMES

SEPTEMBER 2019

267

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MANULIFE VIETNAM

Manulife’s Chief Operations Officer Kevin Kwon explains how digital innovation is transforming the customer experience

T

ransformation isn’t simply about applying new technology,” says Kevin Kwon, Chief Operating Officer at financial services

company Manulife Vietnam. “Technology, of course, is a major enabler of any transformation, but it’s more about shifting people’s mindsets so that you 268

make change and innovation the new normal. That’s when transformation can become really powerful.”

Since joining Manulife, a Canadian life insurance company that operates in North America and 12 markets across Asia, transformation has been Kwon’s focus. It’s also been the focus of Manulife globally, with the company on a mission to transform itself and the industry in the process.

Driving this transformation is Manulife’s focus on improving the customer experience, an embrace of digital innovation and operational efficiency, and building an internal culture that drives this change. At the heart of this transformation is a focus on making decisions easier and lives better for both customers and employees.

SEPTEMBER 2019

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MANULIFE VIETNAM

Based out of Vietnam, Kwon embarked

“ Transformation isn’t simply about applying new technology. It’s more about shifting peoples’ mindsets so that you make change and innovation the new normal” — Kevin Kwon, COO, Manulife

on his own digital and cultural transformation, driven by a shift in focus from conventional methods of doing business – which he describes as manual and involving “paperwork from end to end” – to a seamless digital customer experience.

Creating that experience has been a significant journey for the company, as Kwon explains. “In the past, life insurance has seen a lack of automation and digital technologies, which really sharpened our shift in direction.

270

At the same time, if you’re going to make such a large digital transformation, you have to do it right. The most important step, from a technology point of view, was establishing a target architecture that enables a seamless data flow from one end to another and provides our customers with a full end-to-end solution. All the time we were driven by improving the customer experience.

“One of the unique things about our story is that there is this technology piece that’s focused on innovation, but there is also a wider change management story whereby our SEPTEMBER 2019

: ‘MANULIFE - HÀNH TRÌNH HANH CLICK TO WATCH PHÚC’ .

271 mindset has to be in line with the

digitise all the information that was

evolving needs of our customers;

previously on paper forms. On the

the two feed each other.” On the

claims and auto-adjudication sides,

technology side, creating a simple and

we followed a similar approach.”

intuitive process was key. “In the past,

These developments are, Kwon

agents would receive paper-based

says, “major accomplishments” that

applications, enter our branches and

have significantly improved the

stand in long queues while their policy

customer experience and placed the

was processed. We process close to

company in a leading position in

30,000 new business applications per

the Asian market. “I can confidently

month, so the first priority for us was

say that we are leading in this race,”

the development of an auto-underwrit-

he says. “So many companies say

ing engine in the back end. This was

they’re embarking on a digital transfor-

followed by building the front end

mation, but really they are introducing

to allow our advisors to essentially

a series of solutions one at a time a nz .busi ne ssc h ief. com

MANULIFE VIETNAM

$10mn

worth of investment in Vietnam

1999

Year founded in Vietnam

900

Approximate number of employees 272

SEPTEMBER 2019

273

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MANULIFE VIETNAM

GERMAN QUALITY MADE IN VIETNAM Intelligent Process Automation & Digitalization Solutions – An Outsourcing Model with strong focus of Knowledge, Quality and Technical Advantages.

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rather than having the target architecture that allows a seamless sharing of information through a connected ecosystem. An end-to-end solution really is key here, many organisations only develop a front or back end solution so that they still have employees working between the two on a manual basis – that is not a ‘digital transformation’.”

A significant factor in this success, Kwon states, is working with partners throughout the development stage.

“It’s all about partnership. We can’t do everything, and neither can they,”

E XE CU T I VE PRO FI LE

Kevin Kwon Kwon is the Chief Operating Officer of Manulife Vietnam; he sits on the management team and has a passion for customers.

During his 21 years of international experience in financial services, he has built a reputation of driving and delivering excellence across Corporate Strategy, Bancassurance, Product Development and Product Pricing. His creative vision and business insight into company management are helping enhance operations and drive business transformation within Manulife. When he is not busy fostering a culture of digital transformation, Kevin is focused on his other fulltime role as loving husband and father to two little kids.

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MANULIFE VIETNAM

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SEPTEMBER 2019

he explains, “but when we work

advantage for us, which is why Manulife

together with partners who share

made the strategic decision to refresh

our values and our competencies,

its values and focus on building a

we are on the same journey. The other

new culture.

advantage we had was that our

He has been in his current role for

solutions were developed in our

two years and has also focused heavily

regional headquarters and rolled

on developing the right mindset to

out across Asia, allowing for a lift

accompany change. “Everything

and shift approach. This offered

we do starts from customer journey

greater economies of scale and

mapping,” he explains. “We never

ade it easier and faster for us to

second guess what they want; it is

go to market.”

our job to know their needs. That

For Kwon, implementing such

process isn’t a one-off exercise, but

a transition has only been possible

a constant evolution based around

due to a significant cultural shift within

a concept we call ‘customer experi-

Manulife. This change has been driven

ence transformation’.”

by a new set of corporate values

This, he says, has involved the realign-

designed to improving how employees

ing of teams within the business so that

think, act and work. “We truly believe

they are in line with customer require-

culture can be a distinct competitive

ments across four major segments:

“ If you’re going to make such a large digital transformation, you’ve got to do it right” — Kevin Kwon, COO, Manulife

search, buy, manage and review, and claims. “Every value stream has its owner, and every owner has full autonomy to decide on how best they can improve customer experiences using the tools that we are giving them,” Kwon notes. “They have the right to prioritise, to see how we can enhance those digital tools and create a better customer journey.” a nz .busi ne ssc h ief. com

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MANULIFE VIETNAM

278

“ All the time we were driven by improving the customer experience” — Kevin Kwon, COO, Manulife

The unintended positive from such an approach has been a significant uplift in working culture at Manulife.

For example, improving the methods by which customers are served, and optimising efficiency in the company’s solutions, creates a better work/life balance for Manulife’s employees.

And, because they no longer need to spend as long working through ndless paper trails, employees can be deployed to new areas or roles, and thereby add greater value in the workplace.

SEPTEMBER 2019

279

“It is a challenge, but it’s also an

now in place, Kwon hopes to continue

opportunity,” Kwon states. “As a result

to focus on managing change for the

of our digital transformation, we are

foreseeable future. It is, he says, an

working with our training academy

ongoing process that involves: “making

offer better career paths, to provide

sure we have the right training pro-

opportunities to upskill and retrain,

grammes in place, that we have the

and to be successful within Manulife,

right content and are communicating

all while improving the experience

it in the most effective manner. It’s

for our customers. Often, people think

a journey that never stops, but our

a digital transformation is simply about

ultimate bold ambition is to transform

reducing costs or streamlining. There

and become the most digital customer-

are far greater benefits than that”.

centric market leader in our industry.

With the fundamental building blocks of Manulife’s transformation a nz .busi ne ssc h ief. com

280

DIGITAL AND CULTURAL TRANSFORM at Merchantrade Asia

WRITTEN BY

WILLIAM SMITH PRODUCED BY

KRISTOFER PALMER

SEPTEMBER 2019

D

MATION

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MERCHANTRADE ASIA

Merchantrade’s Chief Technology Officer Zainol Zainuddin details the cultural and digital transformations empowering the company’s services

H

aving begun as a telecommunications company, Merchantrade Asia now occupies a highly visible role in the

Malaysian money services industry. As Chief Technology Officer (CTO) Zainol Zainuddin explains, the company provides a broad range 282

of services clustered around its central business, such as international money transfer, foreign currency exchange, digital payments and wholesale currency. Merchantrade has also made headlines in the digital space having successfully rolled out the country’s first ever digital remittance service and cashless payment offerings, the latest being Merchantrade Money; a multicurrency hybrid wallet offering up to 20 currency payment mode options.

With such a diverse range of services, part of Zainuddin’s role is to strategise, innovate, transform and lead the company’s technology strategies, strengthen in-house technical capabilities and build strategic technology solutions to enhance the customer experience and journey. “I spend quite a bit of time talking to our staff, figuring out technology SEPTEMBER 2019

283

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MERCHANTRADE ASIA

“ Our goal is to always be the financial services provider of choice” 284

— Zainol Zainuddin, Chief Technology Officer, Merchantrade Asia

SEPTEMBER 2019

challenges or solutions, and the types of technology we can use,” he says.

“With an IT division as large as ours, there are always risks, especially when there’s a new challenge to overcome, which is completely common. The old school thought is to first look inward then manage tasks which can be detrimental to knowledge sharing.

Cultivating an open communication platform is crucial to maintaining and managing people and expectations.”

That openness extends to how Merchantrade Asia builds partnerships

CLICK TO WATCH : ‘MERCHANTRADE – CONNECTING PEOPLE’ 285 and connections, as Zainuddin explains.

fuels Zain’s appetite and impetus for

“We extend our own ecosystem and

digital transformation. Zain considers it

corridors to strategic partners around

vital to also listen to voices from his

the world. As building each corridor

team. “Transformation requires the

and partner takes time, we are

establishment and communication of

aggressively exploring new ways to

goals. Technology transformation can

ensure we keep our corridors expanding

only be successful if the organisation

fast. Technology wise, we currently

transforms its culture. Above all,

connect with our partners via secured

ensuring a cultural change along with

open APIs and distributed ledger

a technological one should be the

technology with all the security, speed

message being broadcasted and

and reliability that come with it.

reinforced regularly. As leaders, we

Merchantrade firmly advocates

should empower people to decide how

digitalisation at its core, from its

work is delivered. We need to keep the

leadership to its grassroots, and this

rules simple and help remove roada nz .busi ne ssc h ief. com

MERCHANTRADE ASIA

286

blocks. Let the team prioritise good outcomes for customers. If the team believes in it, we should empower that.”

With such a culture being adopted, Merchantrade has been able to implement a wide array of business and technological improvements.

Some of the company’s most crucial systems, its customer facing applications, are developed internally. “Merchantrade owns a software company and most of our applications are built in-house. We have about 120 developers who build the majority of our applications SEPTEMBER 2019

“ I spend quite a bit of time talking to our staff, figuring out technology challenges or solutions, and the types of technology we can use” — Zainol Zainuddin, Chief Technology Officer, Merchantrade Asia

under the Microsoft technology stack.

Another interesting technology which we are exploring is Progressive Web App, this allows building an application that is platform agnostic. This approach helps create a consistent experience across all devices while maintaining the performance advantages of each platform and shortens delivery timeline.�

Data collection and analysis has also seen significant progress. “When I joined, we had a traditional data warehouse infrastructure,� says

E XE CU T I VE PRO FI LE

Zainol Zainuddin Zainol Zainuddin is an experienced IT Transformation leader who has spent the last 25 years in providing leadership to various IT Division and large Program Management set up; specifically in Financial and TELCO industries.

He specialized in delivering IT Strategic programmes in accordance to an agreed road map and prioritization. He is now the Chief Technology Officer of Merchantrade Asia; a post he has held since September 2018. He is entrusted to strategize, develop, transform, innovate and lead the execution of Merchantrade technology strategies while strengthening the in-house technical capabilities and build strategic technology solutions for enhanced customer experience.

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MERCHANTRADE ASIA

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SEPTEMBER 2019

“Technology transformation can only be successful if the organisation transforms its culture” — Zainol Zainuddin, Chief Technology Officer, Merchantrade Asia

289

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EMPOWER ENTERPRISES WITH OPEN SOURCE SOLUTIONS ABYRES, a leading Enterprise Open Source solution provider that brings innovation and value to our clients in the areas of Big Data Analytics and Data Engineering Learn More

Zainuddin. “Sometimes, it could not

Core; and through the use of edge

provide the information that we

components such as Hive and Spark.

needed. Today, we’ve adopted new

For analytics and data visualisation,

technologies and architectures

we use Tableau to create visualisations

utilising data lakes. We’ve partnered

in the form of dashboards and

with ABYRES Enterprise Technologies

worksheets. We’re also looking to

to build a big data infrastructure to

cloud, however there is still quite a

facilitate data analytics with new levels

challenge in adopting cloud-based

of insight, which is very exciting. As for

applications at the moment, especially

data collection, such as testimony

for financial services providers as

profiles, transactional data, online

it involves sensitive information.”

footprint and social media information,

Emerging technologies such as

there are quite a few methods of

AI are also on the horizon. “We have

collection, whether batch or in real time

not embarked actively on it just yet.

via NiFi or Sqoop; through Hadoop

However, we have considered other

MONTH 2019

technologies like robotic process automation (RPA) for certain operational processes which are consistent and repetitive to improve efficiency and data accuracy. It’s much easier to implement RPA in workflows. The automation process is able to complete the work much more quickly and

RM146mn Approximate revenue

1996

Year founded

produce accurate output. In the long run, it creates higher productivity and value with lower investment. Ultimately, once we have all our information data links up, we’re definitely going into AI or machine learning very quickly.”

1,200

Approximate number of employees

CLICK TO WATCH : ‘MERCHANTRADE MONEY – SIMPLIFY YOUR LIFE WITH JUST ONE CARD’

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MERCHANTRADE ASIA

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C O M PA N Y FACT S

• Most of Merchantrade’s applications are built in-house • Multicurrency hybrid wallet supports 20 currencies

SEPTEMBER 2019

As CTO, Zain’s philosophy is encapsulated by his belief that championing technology, mindset and behavioral change are paramount to attaining a competitive advantage and sustainability. The futures of fintech companies are dependent on their ability to gain customer insight, advanced analytics and digital technology to provide services that facilitate today’s ever evolving digital-savvy customers in managing their finances.

Under his stewardship, the digital future for Merchantrade heralds continued growth. “In terms of goals, we want to expand service offerings to all our customers. Our goal is to always be the financial services provider of choice. Merchantrade should be ingrained in their minds and be a force to be reckoned with for financial services globally.”

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SUSTAINABLE SUPPLY CHAINS FOR GROWTH WRITTEN BY WILLIAM SMITH PRODUCED BY CAROLINE WHITELEY

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D E C AT H L O N

THAO NGUYEN, HEAD OF PROCUREMENT & LOGISTICS FOR DECATHLON VIETNAM, AND NUNO TINOCO, HEAD OF FOOTWEAR, EXPLAIN THE ETHICAL APPROACH TO SUPPLY CHAINS POWERING THE COMPANY’S SUSTAINABLE GROWTH IN SOUTH EAST ASIA

S

porting goods company Decathlon has in recent years found new avenues for expansion in South East Asia (SEA).

Identifying its potential, the company’s first store in the region was opened in Thailand in 2015. Since 296

then, openings in SEA include a further nine stores in Thailand, six in Singapore, two in Vietnam, four in Malaysia, three in Indonesia, three in the Philippines and one in Cambodia. Nuno Tinoco is Head of Footwear for Decathlon Vietnam, and explains the company’s vision in this area. “Decathlon has changed a lot, both externally and internally over the past 10 years. We’ve expanded to more countries in the past decade than in the previous 33 years. This challenged us to re-think our product offering and our organisation. The main idea is to go faster by giving our teams power to decide locally, in each country, in each city, where the consequences have the most impact. We’ve gone for smaller teams, passionate about sport, who can better connect with their users and design more relevant products.”

SEPTEMBER 2019

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D E C AT H L O N

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“ By being usercentric, we can involve our sport users in the creation of the products of tomorrow” — Nuno Tinoco, Head of Footwear, Decathlon Vietnam

SEPTEMBER 2019

The fulfilment of Decathlon’s plans is being aided by the procurement function, as Thao Nguyen, Head Of Supply & Logistics for Decathlon Vietnam, explains. “Procurement is an important part of making sport accessible to the many. Local teams based in manufacturing countries are responsible for sourcing and managing the suppliers that produce Decathlon products. Once they are manufactured, Decathlon products are shipped by transport providers right into warehouses, then allocated to stores or

CLICK TO WATCH : ‘DECATHLON VIÊT NAM – XIN CHÀO TP. HÔ CHÍ MINH’

directly supplied to customers and

right people at the right place in a long

users after an online order.” This

term sustainable environment. We

vertical structure is vital for the

must preserve our planet and its

business as it expands its operations.

people to protect our purpose. Profit

“Our fully integrated chain which

will be a consequence of that, but that

stretches from retail to production

is not our first goal.” More than just

allows us to better master our costs,

words, the ‘three Ps’ guide and inform

the quality of our products and our

the company’s operations, for instance

supply chain,” says Tinoco.

ensuring it goes above and beyond in

Decathlon is clear that the character

its interactions with suppliers. “For

of its expansion is always conscientious.

many years now, we have had our own

“‘People, Planet, Profit’ are our watch-

requirements to assess the level of

words,'' says Tinoco. “For Decathlon,

our suppliers,” says Tinoco. “These

profit is a consequence of having the

requirements are more demanding a nz .busi ne ssc h ief. com

299

D E C AT H L O N

300

than local laws and aligned with best

creating teams organised by sport

international standards. These assess-

three years ago, whether that’s

ments are done regularly through

volleyball, trail, boxing or more,” says

official audits but critical points are

Tinoco. “These sports teams work

checked daily by our compliance team

closely with retail, production and

with suppliers in the field. We are able

more importantly with our sport users.

to do this by having offices inside

For example, we have one team-mate

our factories with a daily Decathlon

currently based in Vietnam who is a

presence and by building close relation-

high level road runner and also part of

ships with our suppliers’ teams.”

the road running team at Decathlon.

This inclusive, personal, sustainable

He develops the products of the

approach extends throughout the

sport he practices every day,

company, and even into the creation

collecting feedback from the

of products themselves. “We started

community of runners he is part of.

SEPTEMBER 2019

“More than 96,000 people in Decathlon are working every day to realise our purpose: sustainably make the pleasure and benefits of sports accessible to the many” — Thao Nguyen, Head Of Supply & Logistics, Decathlon Vietnam

301

E XE CU T I VE PRO FI LE

Thao Nguyen Thao Nguyen is a specialist with a decade of successful experience and comprehensive understanding of supply chains. Her experience widely covers activities including procurement, international freight, customs clearance, warehousing, ecommerce fulfilment and last mile delivery. She is a leader with proven skills of recruitment, team development and project management, with a commitment to identifying and implementing continuous improvement. She believes that the responsibility of companies and individuals should be in the ‘3 Ps’: Planet, People and Profit. Nguyen works to build effective, caring and environmentally friendly supply chain solutions, implemented in a human focused way. She is also passionate about healthy living and travelling.

a nz .busi ne ssc h ief. com

YOU DON’T BUILD A BUSINESS, YOU BUILD PEOPLE WHO BUILD YOUR BUSINESS AND INTUITIVELY CLIENT SATISFACTION TNG manufactures high quality garments, specializing in outer and sportswear since 1979. TNG is one of the top 10 multi factory apparel manufacturers in Vietnam and one of the most transparent companies in the Hanoi Stock Exchange.

LEARN MORE

TNG is very well certified by third party compliance firms, major brands and retailers.

TNG has the capacity to handle high-volume projects in a timely fashion with 11 sewing factories and several support facilities.

DESIGN Our Design Team is conscious of current trends and has the ability to provide creative and commercial designs across various categories.

COMPLETE IN HOUSE SERVICING TNG has 7 support facilities.

We offer all services, from design to printing, quilting, padding, washing, packaging and shipping. This ensures complete control and effective communication.

SOURCING TNG Ě s wide ranging and year long experience in the industry established professional and reliable relationships with top suppliers all over the world.

LEARN MORE

By being user-centric, we can involve

innovation and digitalisation of the

our sport users in the creation of the

supply chain. Once per year we

products of tomorrow to better fit

organise a forum during which each

better their expectations.”

supplier can present to others.” Such

As well as ensuring its own opera-

a consideration dovetails with

tions have this culture, Decathlon

Decathlon’s extensive sustainability

extends its reach to influence those

goals targeting risks across human

around it. “We have established

rights, health and safety and the

numerous examples of good industry

environment, which are backed by

partnerships with suppliers all over

concrete targets. For instance,

the world,” says Tinoco. “Each of them

Decathlon is aiming for 100%

is skilled in some of the specific key

renewably-sourced electricity for

strategies and challenges of tomorrow

all of its distribution and logistics

such as automation, continuous

activities by 2026, and as of

improvement, big data management,

now, 82% of its suppliers are

SEPTEMBER 2019

receiving A, B or C rating for working conditions, up 28% from 2017. By 2021, the company is targeting a 20% decrease in CO2 emissions thanks to energy consumption and renewables investment.

One specific example of Decathlon’s behaviour inspiring transformative change in others comes from its work with manufacturing partner Dovitec.

“Dovitec was inspired by our sustainable development strategy,” says Nguyen.

“One of their Decathlon exclusive sites has instituted an energy saving project

“ Profit is a consequence of having the right people at the right place in a long term sustainable environment” — Nuno Tinoco, Head of Footwear, Decathlon Vietnam

305

E XE CU T I VE PRO FI LE

Nuno Tinoco Nuno Tinoco studied sport sciences and shoe engineering in France. Following his passion, Tinoco has 11 years of successful experience in the Footwear industry, ranging from Lab Research, Quality, Strategic Purchasing, and management.

Living in different countries such as Portugal, Switzerland, France, Romania, Bangladesh and Vietnam, he has built strong skills in cultural adaptation, learnt six languages and is able to make decisions in challenging environments. Through all of his experiences he has been driven by his passion for sports and footwear going through business management and team development. He is also a family oriented person and a player of basketball and guitar.

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D E C AT H L O N

1976 Year founded 96,000 Approximate number of employees globally

+ €1 1.bn Turnover (excluding taxes) end of 2017

306

SEPTEMBER 2019

307

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D E C AT H L O N

C O M PA N Y FACT S

• Decathlon is aiming for 100% renewably-sourced electricity for all of its distribution and logistics activities by 2026 • Recently opened 10 stores in Thailand, six in Singapore, two in Vietnam, four in Malaysia, three in Indonesia, three in the Philippines and one in Cambodia.

308

• The company is targeting a 20% decrease in CO2 emissions by 2021

which has resulted in a number of improvements. Solar panels now provide 56.9% of the office’s energy consumption, they’re using daylighting and walls are being made from non-baked bricks to reduce heat gain and save the CO2 emissions produced by the baking process. Thanks to these and other solutions they’re reduced their energy costs by 50%. They’ve also put in place wastewater treatment and rainwater harvesting systems.

SEPTEMBER 2019

“ We are working on implementing cloud-based transportation management systems with AI optimisation tools, as well as a green project to reduce CO2 emissions” — Thao Nguyen, Head Of Supply & Logistics, Decathlon Vietnam

Free sport facilities are provided for workers, and facilities for disabled people have also been set up.”

Another comprehensive collaboration comes in the form of Decathlon’s work with DHL. “DHL International Supply Chain (DHL ISC) runs a dedicated DHL control tower which provides a single point of contact in Vietnam and Taiwan for Decathlon's operations,” says Nguyen.

“The control tower

oversees Decathlon's air, sea and road shipments from factories in Vietnam and Taiwan to the world. DHL's ISC services offer comprehensive solution design and project management backed by a global governance structure that guarantees consistency across operations. The collaboration we set up involved a high level of coordination, understanding and continuous improvement mindset for the mutual benefit of both a nz .busi ne ssc h ief. com

309

D E C AT H L O N

companies. The results were very satisfying. We achieved 91% container optimisation, 100% data on-time and 100% document on-time. We believe this partnership can go even further, and we are working on implementing cloud-based transportation management systems with AI optimisation tools, as well as a green project to reduce CO2 emissions.”

Decathlon is not planning to rest on its laurels as it follows its plans for growth. “Over the next 10 years, we will 310

regularly re-write our vision,” says Tinoco. “Doing that helps us to identify the main challenges of tomorrow, whether that’s the environment, data management, digitalisation, industry 4.0 and beyond. We want to connect with our sport users and make sure our products are accessible as fast as possible through physical stores or online.” Ultimately, Decathlon is confident in the resilience of its strategy going forwards, with rewards on offer not just for itself but for customers and the world at large.

“More than 96,000 people in Decathlon are working every day to realise our purpose: sustainably SEPTEMBER 2019

311

make the pleasure and benefits of sport accessible to the many,� says Nguyen. “Going into the future, our strategy of empowering people, decentralisation, user centricity and digitalisation will help Decathlon become more agile and better able to adapt to fluctuating environments and answer to the increasingly complex requirements of our customers.

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C O R N I N G I N C O R P O R AT E D 312

leveraging supply chain collaboration and procurement consortiums for a successful supply chain WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CHARLOTTE CLARKE

SEPTEMBER 2019

313

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C O R N I N G I N C O R P O R AT E D

Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums, Global Supply Chain Management at Corning Incorporated, discusses the importance of supply chain collaboration amidst its transformation journey in the manufacturing industry

A 314

s one of the leading innovators in materials science worldwide, Corning Incorporated is used to being in the

ascendency. Established in 1851, Corning has become a major heavyweight in the glass manufacturing space, with its products used in applications including smartphones, automotive interiors, large-size televisions and displays, and even pharmaceutical packaging. Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums of Corning, understands the importance of procurement to his firm’s operations and believes it is considered a vital priority. “As a manufacturing company, supply chain and procurement are front and center of everything that we do,” says Kruse. “It’s an old adage, but every dollar that we save contributes directly to the bottom line of the company and reduces our adjusted manufacturing costs.”

SEPTEMBER 2019

315

“ As a materials science and technology manufacturing company, supply chain and procurement is front and center to everything that we do” — Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums, Corning Incorporated

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C O R N I N G I N C O R P O R AT E D

316

Corning has a range of business

the suppliers via e-auctions and nego-

lines including products that serve and

tiations,” he says. “You can do value

enable the latest trends in the optical

engineering, optimize and manufacture

communications, mobile consumer

products more effectively, but what

electronics, life sciences vessels, auto-

we’ve found is the next threshold is

motive, and display markets. “Overall,

really to work with other like-minded

we manufacture a really mixed product

organizations and highlight the impor-

line with our clients, customers and

tance of supply chain collaboration

other multinational companies in mind,”

and to leverage procurement consor-

Kruse explains.

tiums where applicable. We can look

He stresses that the key to success is

at it from two ways in our collabora-

a clear procurement strategy. “There’s

tion: either combine our volumes if

only so many times you can keep going

our products align and go to market

to the well and reducing costs from

together or approach it from a suppli-

SEPTEMBER 2019

317

E XE CU T I VE PRO FI LE

Tom Kruse Mr. Tom Kruse is currently based in Singapore where he is the Global Head of Supply Chain Collaboration & Consortiums within the Global Supply Management organization at Corning. Mr. Kruse has over 20 years of strategic procurement and supply chain management experience in high-tech, manufacturing and service environments. He has lived and worked in three geographies, has established new Procurement organizations and developed and implemented Procurement transformation strategies.

a nz .busi ne ssc h ief. com

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2. Improve upon long-standing contract savings and service-levels 3. Benchmark results both current contracts and overall market trends 4. Satisfy end-user stakeholders’ priorities needs and goals.

Procurement is tasked to do all of the above (and more) while operating in an ever-evolving business environment. Group purchasing organizations (GPOs) can narrow the scope of priorities for procurement as they take on and deliver on the most important value drivers. In our guide, “Reshaping the Future of Purchasing,” you’ll discover the benefits and value-added drivers that you'll gain through GPO membership.

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CLICK TO WATCH : WHERE IS CORNING? 319 er’s perspective and say: ‘We’re buying

seeking out new consortiums or Group

these 10 cubes of packaging from the

Purchasing Organizations (GPO’s), in

same suppliers that you’re buying from,

different markets to understand what

it’s just that you’re buying different

they’re doing and how we can benefit

products – but by combining our spend

by joining them,” explains Kruse.

together, we’re making it more attrac-

“Ultimately, we measure the savings by

tive to the suppliers’.”

evaluating the contribution to operat-

Corning has overseen a rapid trans-

ing margins (COMs) and decide how

formation in the number of consortia it

we can make them perform. Other than

has become involved in over the past

savings we need to ask ourselves: what

few years. Having participated in just

other value can we gain from them? For

one consortium two and a half years

example, we’re pursuing market intel-

ago, the company has experienced a

ligence, understanding best practices

major surge, with the figure increasing

and working with other organizations

to 11 in a short space of time. “We’re

to exchange information.” Some of a nz .busi ne ssc h ief. com

C O R N I N G I N C O R P O R AT E D

320

1851

Year founded

$11.4bn+ Approximate revenue

50,000

Approximate number of employees

SEPTEMBER 2019

321

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C O R N I N G I N C O R P O R AT E D

Intelligent | Connected | Predictive

WELCOME TO THE FUTURE OF PROCUREMENT WELCOME TO CHAIN IQ Cognitive Computing & AI

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Corning’s key supply chain collabora-

manufacturing sector, companies must

tion partners include Chain IQ, who

adopt and embrace new technologies

is a leading global Sourcing Service

in order to remain a leader in the field.

Provider (SSP) and OMNIA Partners,

Kruse affirms how crucial digital trans-

the largest GPO in the US. “Both

formation is to Corning’s decision-

organizations have proven to be vitally

making processes moving forward.

important in our collaboration journey

“We have different internet platforms

and we work closely with them to

where we exchange information

seek out new opportunities across

externally with collaboration partners,

different markets and categories,”

suppliers, like-minded organizations

Kruse explains.

and customers,” he explains. “We’re

With the introduction of Industry 4.0

working on this with a great sense of

and the Industrial Internet of Things

urgency because we recognize that

(IIoT) over the past few years becom-

digitalization and digital transforma-

ing increasingly prevalent in the

tion are becoming vitally important to

SEPTEMBER 2019

us.” Whilst the implementation of new technology can often seem like a good idea, there is no value in introducing new systems that do not enhance the current processes already utilized by companies. Kruse affirms that the only way to achieve his company’s goals is by learning from mistakes. “You’re never going to

“You have to make technology useful for you in order to shape the direction you want it to go in” — Tom Kruse, Global Head, Supply Chain Collaboration & Consortiums, Corning Incorporated

323

than the current one you already have – you just have to use trial and error. You have to seek this new technology, try it, incubate it and keep what works for you as well as understanding how you can be consistently successful with all of

improve it to enable better practices.”

the different technological and supply

With sustainability in mind, Kruse rec-

chain collaboration elements,” he says.

ognizes how important recruitment

“It’s not a given that the new technology

is to ensuring long-term success at

you’re introducing is going to be better

Corning. “In my particular area, it all a nz .busi ne ssc h ief. com

C O R N I N G I N C O R P O R AT E D

Breakthrough Innovations 1879: Light Bulb Glass Corning developed the glass encasement for Thomas Edison’s lightbulb and a mass-production process that made them more widely available.

324

1947: Cathode Ray Tubes Corning revolutionized the television industry by inventing a process to mass-produce TV picture tubes.

1970: Optical Fiber Corning developed the very first opticle fiber capable of maintaining laser light signals over significant distances, paving the way for fiber optics in telecommunication.

2007: Corning ® Gorilla® Glass Corning developed a revolutionary glass that’s thin, light, and damage resistant, making it an ideal cover material for consumer electronics.

SEPTEMBER 2019

boils down to people. I have to

few years. “I think we just need to con-

constantly find the right peo-

stantly seek out new innovations and

ple in my organization to help

understand them as much as we can in

drive our collaboration and

order to help embed them into Corning

consortium interests forward,”

and make them work for us,” Kruse

he says. “I will then help to find

concludes. “You have to make technol-

and shape a successor who will

ogy useful for you in order to shape the

continue to drive this forward, adapt

direction you want it to go in.”

to change and modify when required to be changed.” Looking to the future, Kruse harbors clear goals of where he wants his supply chain and collaboration function to be over the next

325

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326

PT SEMEN INDONESIA: INSIDE THE DIGITAL TRANSFORMATION OF A MARKET LEADER WRITTEN BY

HARRY MENEAR PRODUCED BY

KRISTOFER PALMER

SEPTEMBER 2019

327

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PT SEMEN INDONESIA

ACHMAD THOLCHAH, GENERAL MANAGER OF IT AT PT SEMEN INDONESIA, DISCUSSES THE COMPANY’S PLANS TO MAINTAIN ITS POSITION AS A MARKET LEADER

T

he world is changing. As markets are disrupted and reshaped by new technologies, methodologies and players, existing

leaders must constantly adapt in order to survive and, hopefully, thrive. In Indonesia, the country’s cement production industry is facing a two-fold challenge: new enterprises entering the market, 328

alongside increased production by existing players, has driven up supply and seen consumer demand decrease by 0.6%. “As a result, the average utilisation rate of cement producers in Indonesia has continued to decrease,” explains Achmad Tholchah, General Manager of IT at PT Semen Indonesia (Persero) Tbk (Semen Indonesia). Tholchah predicts that, while demand is beginning to grow again, constantly increasing competition is inevitable.

“This combination of excess supply and decreasing demand for cement has led to increased competition in the market and pressure on pricing, reducing the average price by around 6.5%.”

With major new entrants to the market, particularly from China, and ever-increasing impetus to compete, Semen Indonesia is taking a number of steps, not only to ensure its position as a market SEPTEMBER 2019

329

$2.25mn Approximate revenue

1957

Year founded

10,000

Approximate number of employees a nz .busi ne ssc h ief. com

PT SEMEN INDONESIA

“PT SEMEN HAS CONSIDERED ALL OPPORTUNITIES, AS WELL AS RISKS THAT COULD MAKE THE CEMENT BUSINESS MORE CHALLENGING” 330

— Achmad Tholchah, General Manager, IT, PT Semen Indonesia

leader in the region, but to drive growth and profit. We spoke with Tholchah in detail about the new pressures facing the industry and explored the ways Semen Indonesia deploys its strategic acquisitions, supply chain optimisation and the next phase of its Internet Communications Technology Master Plan (ICTMP) in order to not only endure current challenges, but emerge stronger than before and position itself as the region’s market leader for decades to come. “Semen Indonesia has considered all opportunities, as well as risks that could make the cement business more challenging,” explains Tholchah. “Through its Marketing and Supply Chain Directorate, we have initiated a series of strategic marketing initiatives to ensure optimal sales volume for the company, as well as strengthening its position as a leader in the domestic market.”

Originally inaugurated in 1957 by the first President of the Republic of Indonesia, Semen Indonesia has since grown into the country’s largest cement manufacturer. The firm’s annual production capacity has expanded from 250,000 to 3.9mn tons, while in Vietnam Thanglong

SEPTEMBER 2019

CLICK TO WATCH : ‘SEMEN INDONESIA’ 331 Cement (a subsidiary of Semen

Semen,” explains Tholchah. “The

Indonesia Group) contributed 2.3mn

acquisition will help us maintain a domi-

tons. In order to diversify its product

nant role in the Indonesian market, cre-

portfolio, increase penetration into new

ate significant operational synergies in

verticals and reach a larger customer

centralised procurement, logistics and

base, Semen Indonesia consistently

maintenance, and finally catalyse and

works to expand through a series

enhance our strategy with scale-based

of strategic acquisitions. In January

benefits along the value chain.”

2019, the company purchased a major-

The acquisition also brings new

ity stake in fellow building materials

technology to the table, as the com-

manufacturer, PT Holcim Indonesia,

pany operates processes for produc-

for a total consideration of US$917mn.

ing energy from waste, which can be

“Holcim (which has rebranded as Solusi

deployed across Semen Indonesia

Bangun Indonesia Tbk) contributes

Group’s facilities to further increase

strategic and operational value to

company-wide efficiency. This is a nz .busi ne ssc h ief. com

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particularly useful as the combined entity resulting from the purchase will be one of the largest domestic coal consumers in the country, with an estimated consumption of 10mn tonnes per year. Tholchah’s role in this transition process is to facilitate a seamless merging of the two companies’ IT infrastructure. “Some of the challenges we’re facing are the integration of supply chain processes, financing and distribution, mapping the products, materials and data that are expected to

“ THE ACQUISITION OF HOLCIM INDONESIA WILL HELP US MAINTAIN A DOMINANT ROLE IN THE INDONESIAN MARKET” Achmad Tholchah, General Manager, IT, PT Semen Indonesia

flow between the companies, and aligning employee functions,” he explains.

333

E XE CU T I VE PRO FI LE

Achmad Tholchah Achmad Tholchah, a graduate of the Bandung Institute of Technology in 1995, began his career in the cement business as a plant engineer at PT Semen Padang, the oldest cement company in Southeast Asia. His interest in Information Technology began when he was assigned to develop the system information for plant maintenance. Subsequently became a project manager for the implementation of ERP system. After successful implementation, the duty was continued to develop the IT system for Semen Indonesia Group, which is the holding company of PT Semen Padang.

After graduated master degree from a business school, served in the company’s business strategy for several years, before returning to the IT division again.

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PT SEMEN INDONESIA

Overcoming these challenges – alongside the company’s continuing goals of maintaining its market position and enabling growth – are being aided by PT Semen’s ongoing digital transformation according to its ICTMP. “ICTMPs last between three and five years. ICTMP I, which covered the 2008-2013 period, concentrated on providing a single ERP platform system that enabled the company to standardise its business processes among cement subsidiaries. ICTMP II, which covered the 2014-2018 period, 334

focused on revitalising and upgrading the core ERP modules and expanding its capabilities to support the implementation of Customer Relationship Management (CRM) and Supply Chain Management (SCM). CRM and SCM are the key to enhancing the company’s competitiveness in both domestic and regional markets,” says Tholchah.

This year, Semen Indonesia embarks upon a new stage of its ICTMP that focuses on the company’s customer base. “Our main concern is using technology to enhance the customer experience,” he says. “By shifting our focus and paying more attention to what customers want, service is SEPTEMBER 2019

335

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PT SEMEN INDONESIA

336 improved consistently across all touchpoints and channels.”

The continuing digital transformation of Semen Indonesia operations will, Tholchah asserts, allow the company to pursue accurate market segmentation, consolidate its operations and draw increasingly accurate insights from its analytics. “New technology enables businesses to discover more adaptive and agile models based on customer parameters that were impossible to uncover and/or track in the past,” he elaborates. “The introduction of cost-effective, customer-focused SEPTEMBER 2019

CLICK TO WATCH : ‘SEMEN GRESIK’ 337

“ OUR MAIN CONCERN IS USING TECHNOLOGY TO ENHANCE THE CUSTOMER EXPERIENCE”” Achmad Tholchah, General Manager, IT, PT Semen Indonesia

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PT SEMEN INDONESIA

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339

“THERE’S MORE DATA TO COLLECT THAN EVER, AND FAILING TO MEASURE THE RIGHT DATA COULD END IN DISASTER” Achmad Tholchah, General Manager, IT, PT Semen Indonesia

digital tasks streamlines business workflows and eliminates overheads associated with outdated solutions.

Of course no transformation effort is without its challenges.” Tholchah acknowledges that as the ICTMP moves forward, the company needs to ensure that new analytics strategies are measuring the appropriate data sets to draw actionable insights.

“There’s morewdata to collect than ever, and failing to measure the right data would lead to disaster,” he warns.

Tholchah also notes that transitioning from legacy systems presents its own a si a .busi ne ssc h ief. com

PT SEMEN INDONESIA

Partners “It’s vital that we have very skilful and experienced partners to help us,” says Tholchah. PT Semen Indonesa enjoys fruitful partnerships with the following organisations: SAP “SAP Solutions are mission critical to the way we run our business operation system.”

340

IBM “IBM Services partners with us regarding project planning, project management and risk planning. They are also a strategic partner that brings international industry best practices, while understanding regional and local intricacies and, of course, top tier technology offerings.”

SEPTEMBER 2019

Huawei “They provide us with a complete Data Centre solution, from servers to storage and other core network hardware.”

Amazon Web Services “AWS provide us with that essential IT infrastructure cloud services.”

341

problems: “a business relies on prod-

bility in analytics and mobility, as well

ucts and principles that have allowed it

as utilise social networks and cloud

to survive up until now, but sometimes,

technology.” Should the next stage of

legacy can be more of a burden than

its digital transformation be success-

an asset.”

ful, PT Semen will be in an enviable

While the road ahead is challenging

position to leverage its market-leading

and uncertain, Tholchah is very much

position in the Indonesian market to

aware that it holds potential opportu-

not only survive market-wide disrup-

nity for success, growth and longev-

tion, but benefit from it.

ity. “The success of these projects is critical for us; we can’t afford to fail,” he insists. “We believe it is necessary to adapt to industry 4.0 by enhancing ICT usage to improve the company’s capaa nz .busi ne ssc h ief. com

342

GROWTH THROUGH SUSTAINABILITY TRANSFORMATION WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

NATHAN HOLMES

SEPTEMBER 2019

343

Soorty Denim Mill is equipped with the latest Infrastructure a nz .busi ne ssc h ief. com

SOORTY ENTERPRISES

SOORTY ENTERPRISES IS CONDUCTING AN ARRAY OF INNOVATIVE SUSTAINABILITY STRATEGIES AND TECHNOLOGIES, ALONG WITH A ROBUST CSR PROGRAMME, TO ESTABLISH ITSELF AS THE LEADING SUSTAINABLE DENIM MANUFACTURER

T

he denim industry is a notoriously inefficient user of natural resources, but few are more aware, concerned or proactive

about this fact than Soorty Enterprises. While its global operations span Bangladesh, Turkey, the Netherlands and the US, the firm’s deepest roots 344

remain in its home country of Pakistan, a region being disproportionately impacted by climate change relative to its emissions. In 2015, a heatwave in Karachi claimed 2,000 lives and Asad Soorty, Director of Operations at the company, laments that such disasters will only become more frequent. “This coastal city, once with pleasant temperatures and a nice sea breeze, is almost perpetually parched,” he says. “About 60% of the country’s population is food insecure, and almost 45% of kids are experiencing stunted growth. All of this is now; and we haven’t yet moved into the era where Pakistan will be the eighth most climate change-affected country.” He stresses, however, that this exposure to the realities of climate change has not focused the company’s sustainability ambitions on Pakistan, alone. “This is a prime example of a country that SEPTEMBER 2019

345

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SOORTY ENTERPRISES

needs to utilise its arable land more effectively: rather than growing cotton,

346

of industrial wastewater, globally.

Soorty’s efforts to curb its environ-

we should be growing food crops. We

mental impact represent some of the

want to be a part of this change, and

most practical and innovative strate-

we are working hard to disrupt the

gies in the industry, and they are driven

industry. But we don’t see it as a Paki-

by adherence to William McDonough

stan-centric issue. Climate change isn’t

and Dr Michael Braungart’s interna-

a problem bound by borders; unfortu-

tionally-recognised Cradle to Cradle

nately, its solutions are.” He adds that,

(C2C) standards. “We want to have

as a textile company, Soorty stands to

a symbiotic relationship with the en-

make a significant impact: the textiles

vironment,” explains Mr Soorty. “We

industry, by some estimates, produces

think that the C2C design philosophy is

more CO2 than the aeronautical and

the way to go for the entire fashion sec-

maritime industries combined, as well

tor, and it’s a philosophy we subscribe

as being responsible for around 20%

to wholeheartedly.” C2C product certi-

Laser Technology for jeans dry processing is now a commodity in Soorty Enterprises SEPTEMBER 2019

CLICK TO WATCH : ‘THE SOORTY REVOLUTION’ 347 fication is awarded to products follow-

wards fully sustainable solutions: “We

ing a rigorous assessment procedure

have adopted the Tonello UP denim

across five sustainability categories:

washing technology, enabling us to

material health, material reuse, renew-

process the garments with a liquor

able energy and carbon management,

ratio of 1:2 and thereby process 1kg

water stewardship, and social fairness.

of fabric using just two litres of water.

Soorty’s proprietary Zero Waste Water

In the conventional process, the ratio

dyeing process has been used in a

is as high as 1:8, so we have reduced

range of denim fabrics that have been

water usage in this process by 75%.”

certified Gold against these metrics.

The company is also using nebuliser

The complexities of the next-gen solu-

technology that dyes the garments

tions are explained by Sarfraz Cheema,

through a water-chemical cloud, itself

Head of Sustainability of the garment

saving 95% of the water used con-

division, who is responsible for driving

ventionally. The bleaching process is

Soorty’s manufacturing processes to-

perhaps the most impactful, as it uses a nz .busi ne ssc h ief. com

SOORTY ENTERPRISES

“ WE EXIST ON MANY PARTS OF THE VALUE CHAIN, HELPING OUR CUSTOMERS TO IDENTIFY THE LATEST FASHION TRENDS AND THE WHITE SPACES IN THEIR MERCHANDISE OFFERINGS” — Asad Soorty, Director of Operations, Soorty Enterprises

348

no water at all, Cheema explains. “To bleach, mercerise and decolour the garments, we use ozone, which is a very aggressive gas,” he says. “Ozone makes it possible to complete these processes without any chemicals or water. It is reduced to Oxygen after being used.” Any wastewater is collected and treated at the company’s Effluent Treatment and part of it goes through the reverse osmosis plants for reuse in the manufacturing cycle. Soorty has its own jeans recycling facility, where it collects leftover denims and SEPTEMBER 2019

6.5mn

metres of fabric capacity per month

1983

Year founded

1,830

tons of yarn capacity per month

creates recycled cotton from it. This

Corporate Communications and CSR

is blended with virgin cotton to mini-

for Social Sustainability and Communi-

mise the need for fresh cotton to be

ty Relations, replies, “I think it depends

grown and processed.

what you mean by ‘success’ – we don’t

Along with its work towards sustain-

view our CSR as separate from the

able manufacturing, Soorty is also

business, because it isn’t. If we don’t

engaged in myriad corporate social re-

exist to have a positive effect on so-

sponsibility (CSR) projects as a means

ciety, there will be no society for us to

to benefit society, alongside mitigating

exist in. If we can do that then yes, we

its environmental impact. When asked

will be successful.” Whatever your defi-

about the company’s successes in this

nition of success, it cannot be denied

area, Mobeen Chughtai, Manager of

that Soorty has conducted a series of

E XE CU T I VE PRO FI LE

349

Asad Soorty A graduate of the Haas School of Business at UC Berkeley, is an Director at Soorty Enterprises. Asad worked in consulting for a short period of time before realizing that his interests lay elsewhere. He joined his family company in 2015 with a vision to create succession, and thus sustain the company’s inclusive growth. Asad began with a six-month training program where he rotated between the different departments and divisions of the company. This was followed by a six-month stint as Manager Process Excellence at one of Soorty’s production units. These grassroots perspectives, coupled with his strong academic background, have allowed him to settle well into the company and begin taking charge. In his free time, Asad enjoys playing football and volunteering. His passion for volunteering has led him to the Robin Hood Army, where he is an active volunteer and member of the core team of the Pakistan chapter.

a nz .busi ne ssc h ief. com

THE ERA OF CONVENTIONAL STONE-WASH IS OVER TAB WASH IS THE FUTURE OF JEANS WASH Proud partner of Soorty for the Chemical Innovations

impactful CSR programmes and initia-

year, we launched a unique project

tives across Pakistan, including those

in Pakistan: the Soorty Enhancing

in education, health and social welfare,

Women Service (SEWS) project. It will

but its CSR program is evolving be-

enable and encourage the employ-

yond conventional interventions. “In the

ability and empowerment of women

last few months, we have focused our

from low-income backgrounds – the

efforts on two primary issues: mitigat-

first such UN SDG-compliant, multi-

ing climate change and empowering

partner venture launched by a for-profit

women,” continues Chughtai. “Female

entity in Pakistan, to help underprivi-

empowerment is of special signifi-

leged families.” Chughtai stresses

cance in the developing world, where

that climate change, however, is the

women find it much harder to secure

core existential crisis of our times,

their God-given rights or access to

and Soorty is leveraging innovative

basic services, such as healthcare,

technologies outside of its manufactur-

education and justice. In August of this

ing processes to address the chal-

SEPTEMBER 2019

“ WE DON’T VIEW OUR CSR AS SEPARATE FROM THE BUSINESS, BECAUSE IT ISN’T. IF WE DON’T EXIST TO HAVE A POSITIVE EFFECT ON SOCIETY, THERE WILL BE NO SOCIETY FOR US TO EXIST IN” — Mobeen Chughtai, Manager of Corporate Communications and Corporate Social Responsibility, Soorty Enterprises

Ozone Gas is being used to replace conventional bleaching, saving lots of water

E XE CU T I VE PRO FI LE

Sarfraz Cheema As the Chief Operating Officer at Soorty Enterprises, Sarfraz Cheema oversees the production of over a million garments per month. He also serves as the Head of Sustainability for the garments division and strives hard to reduce the overall carbon foot print and set bench marks for the rest of the industry to follow. Sarfraz has been a part of Soorty Enterprises since 2005. Being a chemical engineer, by training gives him an edge in understanding fast moving fashion and the associated wet garment processing. He is considered a pioneering expert in the field, having spent over two decades in the Textiles sector.

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351

SOORTY ENTERPRISES

lenge head-on. “We are in Phase 2 of our Forest Rescue Initiative, designed to reclaim arable land from the Thar desert,” says Chughtai. “For our tree planting strategy, we have partnered with Forests4All, a plantation network from the Netherlands, along with Danish botanical innovator Groasis to use its patented Waterboxx® technology.”

Waterboxx® circumvents the difficulties of limited rainfall and a deep water table by passively watering saplings over the course of a year. “In the two or three months required for a seed352

ling’s roots to reach the groundwater, you must water them. A vast majority of planted saplings simply die off because one: there is no water to give them; and two: there is nobody to water them. With Waterboxx®, you only need to add water once each year,” Chughtai enthuses. “Under this initiative, we also plan on gifting an Urban Forest to Karachi City.”

As the company moves to expand its operations in the US, Mr Soorty is confident that the company has a value proposition that will keenly differentiate it in the highly competitive market.

“Our company is a global concern, from our multiple country of producSEPTEMBER 2019

Soorty Citizen Alpha Program – Encouraging Industry visit for Students

“ SEWS WILL ENABLE AND ENCOURAGE THE EMPLOYABILITY AND EMPOWERMENT OF WOMEN FROM LOW-INCOME BACKGROUNDS” — Mobeen Chughtai, Manager of Corporate Communications and Corporate Social Responsibility, Soorty Enterprises

353 E XE CU T I VE PRO FI LE

Mobeen Chughtai Mobeen is a Communications and CSR Specialist with over 13 years of experience in the trade after finishing his training at the prestigious Lahore University of Management Sciences (LUMS) in Pakistan. He has experience handling both ends of the communications chain, having worked as the business reporting lead for Punjab at numerous media outlets and has served as a consultant to the Punjab Government on development communications. Having also served as the lead business developer for his alma mater, he currently heads the Corporate Communications and CSR portfolios at Soorty Enterprises — Pakistan’s largest vertically integrated Denim manufacturer and exporter.

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SOORTY ENTERPRISES

354

“ TO BLEACH, MERCERISE AND DECOLOUR THE GARMENTS, WE USE OZONE, WHICH IS A VERY AGGRESSIVE GAS. OZONE MAKES IT POSSIBLE TO COMPLETE THESE PROCESSES WITHOUT ANY CHEMICALS OR WATER. IT IS REDUCED TO OXYGEN AFTER BEING USED” — Sarfraz Cheema, Chief Operating Officer and Head of Sustainability, Soorty Enterprises SEPTEMBER 2019

355

tion model in Bangladesh and Pakistan to our design studios in Manhattan,

ries that go beyond simple compliance.”

It is a testament to the depth and bril-

Amsterdam, Karachi and more,” he

liance of Soorty’s CSR and sustain-

explains. “Soorty provides more

ability strategies that they could not all

than just manufacturing. We exist

be condensed into the scope of this

on many parts of the value chain,

profile, although it is abundantly appar-

helping our customers to identify the

ent that the established brands in the

latest fashion trends and the white

US are set for some fierce new com-

spaces in their merchandise offerings.

petition in a world where the conscious

Our strong R&D allows them to have in-

consumer is rapidly becoming king.

novative and high-performance denim, while our responsible manufacturing methods offer fully transparent factoa nz .busi ne ssc h ief. com

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