Business Review Australia & Asia - October 2016 by Business Chief ANZ

BUILDING QUEENSLAND’S future

October 2016

w w w.businessreviewasia.com w w w.businessreviewaustralia.com

TRANSFORMING A MINING SUPPLY CHAIN Company Profiles

• QNET • OOREDOO MYANMAR • BANK ISLAM BRUNEI DARUSSALAM Singapore’s Changi Airport Flying High

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EDITOR’S COMMENT

WELCOME TO THE OCTOBER issue of Business Review Australia & Asia. This month’s issue is all about logistics, and we have a number of exciting, original and engaging articles that explore this topic from various angles. Our lead story on Singapore’s Changi Airport explores how its Cargo and Logistics division has pulled out all the stops to develop into a dynamic, business-friendly regional hub, as well as its plans for future development. I had the pleasure of vising the airport earlier this year and was very much impressed with what I saw and learned. Without sound infrastructure support, logistics becomes an almost meaningless concept, which is why we spoke to David Quinn, CEO of Building Queensland – an independent infrastructure advisor to the Government of Queensland. Finally, we list the top third party logistics companies in the region, based on revenue – an exercise that reveals some interesting developments in the wake of falling global demand and depressed oil prices. Do let us have your feedback on Twitter:

@BizReviewAU and @BizRevAsia

Enjoy the read Nye Longman Editor Nye.Longman@bizclikmedia.com 3

CONTENTS

F E AT U R E S PROFILE

PROFILE

06 High flyer TECHNOLOGY

30 14

Ausdrill

Building Queensland’s future

LIST LIST

Headline for the article

Asia-Pacific’s largest 3PLs

64 QNET

C O M PA N Y PROFILES MINING GLOBAL 30 Ausdrill

Bank Islam Brunei Darussalam

46 HSE Mining

TECHNOLOGY 64 QNET 76 Bank Islam Brunei Darussalam 92 Ooredoo Myanmar 104 Transdev Australasia

ENERGY

118 Crown Resorts 134 DB Results

HSE Mining

Ooredoo Myanmar

104

Transdev Australasia

SUPPLY CHAIN 148 COS

PROFILE

High flyer Business Review Australia & Asia takes an in-depth look at Singaporeâ&#x20AC;&#x2122;s Changi Airport Group and explores how it has developed into one of the finest air cargo hubs in the world Writ ten by: NYE LONGMAN 6

October 2016

PROFILE SINGAPORE’S CHANGI AIRPORT has achieved global renown for both its civilian and air cargo capabilities. It has won a number of regional and global awards in recognition of its air freight operations and is set to continue this trajectory with a number of exciting developments billed for the next few years. Responsible for this enviable position is the Changi Airport Group (CAG) which has consistently worked to ensure that the facility’s air freight is world class. Business Review Australia & Asia speaks to Hui Hoon Phau, CAG’s Assistant Vice President for Cargo & Logistics Development Division to learn more. Regional hub With links to 330 cities in 80 countries, and around 6,800 weekly flights, Changi Airport is one of the best connected in the world and is also the world’s sixth largest in terms of passenger volumes, according to Airports Council International. But it isn’t simply a case of being well connected. “Changi Airport Group continually reaches out to new airlines,” explains Phau, “And also

October 2016

“Catering to the global trade in rare art and antiques, the Singapore Freeport facility enables shippers to store such high value items in a secure, state-ofthe-art location” supports existing carriers in their growth plans – increasing services or adding new city links. With each partner, CAG adopts a customised approach to helping them grow and expand their operations here.” Changi’s 470,000 square metre Changi Airfreight Centre (CAC) was

CHANGI AIRPORT GROUP

established in 1985 and last year recorded roughly 1.85 million tonnes of air cargo across its nine airfreight terminals. Carriers’ operations are facilitated by a dedicated air cargo hub, consisting of logistics warehousing, warehousing for light manufacturing and the Airport

Logistics Park of Singapore (ALPS). “For the first half of 2016, airfreight movements at Changi Airport grew 4.2 percent to reach 950,250 tonnes,” Phau adds, “In June, Changi Airport welcomed two new cargo airlines: K-Mile Air commenced 5x weekly services between Bangkok and

PROFILE Singapore, while Silk Way West Airlines started operating 2x weekly services between Singapore and Azerbaijan.” The 26-hectare ALPS site provides third-party logistics companies (3PLs) the unique opportunity to establish their regional footprint in a designated Free Trade Zone (FTZ) which enables them to make significant savings on tariffs and other duties they may be subject to at other airports in the region. With over 230,000 square metres of dedicated warehousing, the Park hosts a number of world-class 3PLs (including some from our list) such as DHL, UPS. Nippon Express, and DB Schenker, as well as many others. Specialist services Supporting its air freight infrastructure are a number of facilities that cater to the varying and often highly specialised needs of international air cargo. These include two cold chain facilities – coolport (operated by SATS) and the dnata Cool Chain Facility. Companies have the ability to process, store, and ship perishable goods in as little as two hours– in line with a long list of international

October 2016

standards and accreditations. “On the pharmaceutical handling front,” adds Phau, “We continue to strengthen Changi’s capabilities with the pursuit of International Air Transport Association’s Center of Excellence for Independent

Top Five Countries for Cargo, 2015 1. China 2. Australia 3. Hong Kong 4. United States of America 5. India

CHANGI AIRPORT GROUP

Validators on Pharmaceutical Handling (CEIV Pharma) certification. The six companies in the Changi CEIV Community consists of SIA Cargo, dnata Singapore, Global Airfreight International, Expeditors Singapore, CEVA Logistics Singapore,

and Schenker Singapore.â&#x20AC;? Catering to the global trade in rare art and antiques, the Singapore Freeport facility enables shippers to store such high value items in a secure, state-of-the-art location - one of a very small number globally to be

PROFILE

located in a FTZ. Since 2012 the airport has also hosted the FedEx Express South Pacific Regional Hub – a 26,000 square metre facility that can sort as many as 12,000 packages per hour. Expansion Constantly looking to expand its capacity and capabilities, Changi Airport is opening two new facilities this year – the DHL Express South Asia Hub and SATs eCommerce hub. Phau says: “DHL’s 24-hour express facility will be able to support five times more flights in

Singapore and three times more tonnage per day with their new hub. “SATS will be the first ground handler in the world to own such an air-side facility, with automated processes for single scanning and sorting to save cargo processing time and increase efficiency.” In order to support the airport’s cargo and logistics growth in the long term, CAG is looking to further develop a number of dedicated facilities for airfreight and air express services as well as maintenance, repair and overhaul activities.

Changi Airport’s top accolades: - World’s Best Airport 2015 (and five other times!) – World Airport Awards - Best Green Airport – Asian Freight, Logistics & Supply Chain Awards 2015 - Asia Pacific Airport of the Year (Customer’s Choice) – 2015-15, Payload Asia - Asia Air Cargo Port of the Year – Supply Chain Asia Awards 2014 - Top in Asia, Air Cargo Excellence – Air Cargo World 2013

October 2016

CHANGI AIRPORT GROUP

Changi’s five key Cargo Segments 1. Perishables 2. Express 3. Live animals 4. Pharmaceuticals 5. Aerospace Parts

The 1,080 hectare Changi East development is billed for completion in the second half of the 2020s and will involve the building of a new mega terminal (Terminal 5), the extension of the third runway for civilian use, and the development of industrial facilities, infrastructure, and transport links. “This development will secure the long-term growth of Singapore’s cargo and logistics sectors, and strengthen Changi Airport’s position

as a major air hub,” Phau adds. The next decade of air cargo innovation at Changi is sure to be a story that many can learn from. Having backed up extensive air cargo infrastructure with an inclusive, proactive business model - it is little wonder why Singapore’s Changi airport is host to an almost completely unmatched roster of international 3PLs and is set to lead the world for the foreseeable future. 13

INFRASTRUCTURE

Building Queensland’s future Although less than a year old, Building Queensland has had a remarkable impact on the Queensland Government’s infrastructure development process Writ ten by: NYE LONGMAN

October 2016

I n t e r v i e w e e: DAV I D Q U I N N

INFRASTRUCTURE

As standard, Building Queensland identifies projects that provide the greatest value for money as well as long term benefits to communities TASKED WITH PROVIDING impartial advice to the Queensland Government on key infrastructure decisions, Building Queensland has shown planners across the world what can be achieved in little over 12 months. Cemented into the State’s statutory body with the Building Queensland Act 2015, the advisor has already played a decisive role in government 16

October 2016

decision making. Business Review Australia & Asia speaks to Chief Executive Officer, David Quinn, about how it has achieved this, as well as its significant role in the State’s future infrastructure plans. Remit “Building Queensland’s vision is to contribute significantly to superior infrastructure decision

BUILDING QUEENSLAND’S FUTURE

“Recently, two large utilities in New Zealand and Australia, Vector and South Australia Power Network (SAPN) have announced innovative Powerwall programs”

making for Queensland,” says Quinn, “In pursuit of this vision this independent statutory body is providing strong leadership in developing a consistent longer-term approach to infrastructure proposal development and prioritization.” “Building Queensland is fast emerging as the pre-eminent source of independent and expert infrastructure advice to government,

holding the ability to facilitate investment decisions made by the Queensland Government’s State Infrastructure Fund.” In its advisory role, Building Queensland draws on domestic and international policy examples in order to first identify emerging issues (these could be in infrastructure planning, policy, assessment and project delivery) then prioritise and 17

INFRASTRUCTURE

advise the correct course of action. As standard, Building Queensland identifies projects that provide the greatest value for money as well as long term benefits to communities. Building Queensland has also purposely developed a suite of frameworks to assist in the development of quality business cases; these provide a consistent and robust approach to major proposal development. Quinn adds: “Building Queensland is leading the charge to improve the way the Queensland Government develops infrastructure proposals having developed its own best practice Business Case Development Framework. The Framework ensures that a rigorous and robust assessment is undertaken prior to investment consideration.” Building Queensland is also consulted on proposals pertaining

October 2016

to infrastructure that are part of the government’s Market-Led Proposals (MLP) framework. This is an initiative bring together innovation, private sector funding and entrepreneurship that works by contracting exclusively with proponents rather than competitive tendering. Infrastructure Pipeline Report So how does Building Queensland actually share its advice? Its Infrastructure Pipeline Report presents Building Queensland’s view of priority infrastructure proposals – in various stages of development – by the State Government. Using an interactive online tool, users are able to chart the progress of sector-specific projects, as well as explore them in more detail by seeing how the need had been identified, the preliminary evaluation work, and the business case for a given project.

BUILDING QUEENSLAND’S FUTURE

Interested parties are also able to view proposal summaries online. Although the first Pipeline Report was only published earlier this year, Building Queensland is already making waves, Quinn explains: “Since the release of the first Infrastructure Pipeline Report in June 2016, three of the four proposals recommended by Building Queensland as being ready for government investment consideration have secured a funding commitment from the Queensland Government.” He also highlights that Building Queensland’s Infrastructure Pipeline Report supports the Queensland Government by developing better infrastructure proposal development; the Government is better informed while making key investment decisions because, simply put, it has a better selection of projects. “The Infrastructure Pipeline

Report is the first time independent, expert analysis has been used to assess all major infrastructure proposals, including economic and social infrastructure, in development across the Queensland Government,” he adds. Having advised on a growing number of important projects in the State, Building Queensland has shown in a very short space of time that widening the debate is both needed and achievable. Quin concludes: “In delivering its independent advice to government, Building Queensland is also providing industry and the community with visibility of infrastructure proposals currently being considered. It is stimulating more informed debate, as more Queenslanders are able to engage in discussion on future infrastructure needs.”

LIST

Asia-Pacificâ&#x20AC;&#x2122;s largest 3PLs Based on revenues, Business Review Australia & Asia ranks the regionâ&#x20AC;&#x2122;s largest third-party logistics service providers and explores the secrets to their success

Writ ten by: NYE LONGMAN

LIST

IT IS BECOMING clear that the Asia-Pacific region is a hotbed for supply chain activities. Home to some of the worldâ&#x20AC;&#x2122;s largest logistics companies â&#x20AC;&#x201C; not to mention ever expanding manufacturing outfits economic growth for the region is expected to level at around 5 percent annually. Using revenue data submitted to 3PL consulting and market research firm Armstrong & Associates, Business Review Australia & Asia takes a look at each company and explores what current projects they are involved in, faced with the global slump in shipping levels.

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A S I A - PA C I F I C ’ S L A R G E S T 3 P L S

Kintetsu World Express

REVENUES (2015) $3.72 BILLION (Japan)

One of many large Japanese 3PLs, Kintetsu World Express (KWE) has developed its own corporate philosophy: “To contribute to the development of a global community through logistics services – by creating new values, sustaining the environment and

collaborating with our clients, shareholders and employees.” The company’s operations cover air and sea freight, as well as logistics. Outside of Japan, KWE has over 1.3 million square metres of warehousing space, spread across almost 200 facilities in 219 cities and 34 countries.

LIST

REVENUES (2015) $3.83 BILLION (Japan) With operations covering transportation, warehousing and business solutions, Yusen Logistics has sector-specific skills covering healthcare, technology, food retail, aerospace and automotive. With 2.2 million square meters of warehousing, the company has more

October 2016

than enough space to add consulting, management and planning services. Keeping up with Mexicoâ&#x20AC;&#x2122;s increasing demand for airfreight from Asia, Yusen Logistics has recently constructed a dedicated hub that not only meets this need but is also strategically located near to a manufacturing center.

A S I A - PA C I F I C ’ S L A R G E S T 3 P L S

REVENUES (2015) $5.82 BILLION (acquired by Japan Post, 2015) – originally Australia Japan Post acquired Toll Group in 2015 after the company celebrated its 125th year since it was founded in Newcastle, Australia. With 1,200 sites spread across 50 countries, the company offers a range of services to customers. These primarily consist of freight logistics, warehousing

and a multiplicity of supply chain management capabilities. Since JP made the acquisition, it has benefitted from the company’s extensive international presence – an aspect that has helped stem the company’s debts.

LIST

REVENUES (2015) $5.61 BILLION (Japan) Hitachi Transport Systems is well known for its all-encompassing logistics outsourcing covering procurement, production, sales and distribution, and after service. Other aspects of the business cover heavy transport and freight forwarding, as well as a range

October 2016

of sector-specific solutions. According to reporting from Nikkei Asia, the company has improved efficiency in order to consolidate during the global shipping downturn, citing the use of artificial intelligence for a 7 percent pre-tax earnings growth.

A S I A - PA C I F I C â&#x20AC;&#x2122; S L A R G E S T 3 P L S

REVENUES (2015) $7.31 BILLION (China) Sinotrans (HK) Logistics Limited is Chinaâ&#x20AC;&#x2122;s largest logistics company and was formed in 2003 from the merger of Sinotrans (HK) Shipping Limited, Toho Shipping Limited and Waiwell Shipping Limited. The company announced last year that it was going to further merge

with CMESS and the CSC Group. Alongside freight forwarding, bulk cargo, and shipping, Sinotrans provides contract, project and trading logistics services. It is also able to offer customers logistics services covering both chemicals and the cold chain.

A S I A - PA C I F I C â&#x20AC;&#x2122; S L A R G E S T 3 P L S

REVENUES (2015) $15.82 BILLION (Japan) Nippon Express has 60,000 employees in 700 offices across 34 countries, giving the Japanese 3PL a truly global footprint. Its capabilities cover air, sea, road and rail transportation, as well as storage services. Its extensive experience has also been applied to overseas moving,

heavy haulage, precious cargos and a range of logistics design services. Recently, the company has teamed up with Alibabaâ&#x20AC;&#x2122;s TMall in order to ship a range of products to China at a preferential shipping rate. It has also been reported that Nippon is planning to add a China-Europe rail link.

TRANSFORMING A MINING SUPPLY CHAIN Ausdrill has taken advantage of the downturn in mining, taking the opportunity to grow a culture of innovation and lean thinking: this has partly been achieved through an IT-driven, end-to-end transformation in its supply chain Written by John Oâ&#x20AC;&#x2122;Hanlon Produced by Glen White

AUSDRILL

ounded in 1987 by Ron Sayers with just a single drill rig at Kalgoorlie, Ausdrill has grown to become one of Australia’s top 200 companies, listed on the ASX and counting the major mining companies including AngloGold, BHP Billiton, Barrick, Gold Fields and Newmont in its client list. Its rapid growth has been achieved mainly by acquisition, and today the group embraces 19 businesses located across Australia as well as major interests in Africa including a half share, with Barminco, in African Underground Mining Services (AUMS). Ausdrill has been affected in common with the entire mining services sector by the retrenchment in exploration and production following the recent slump in commodity prices. Though Africa has bounced back and Australian gold prices have firmed this year sparking renewed activity, in all its markets Ausdrill is facing greater competition. As Group Contracts and Procurement Manager Ashley Carey puts it, smaller players are desperate for any work to keep them going and

October 2016

are creating a price environment that, though unsustainable, skews the market in the short term. Carey and his colleague, financial controller Renée Harrold, have taken a lead role in easing the company through some very difficult times and refining its procurement processes and culture to a point where it can take full advantage of the upturn that can’t fail to materialise in this notoriously cyclical business. As Carey says: “The downturn has been a blessing in disguise: it has brought the supply chain to the top of the agenda. Without the downturn we may not have had the traction to drive the changes we’ve made over the last two years. Bad times breed good businesses and that is very true in our case.” A case for refinement With plenty of work around, and the highest standards of customer service, there had not been the incentive to introduce what might be called joined-up thinking. There was very little communication between the businesses in the group, and

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Ron Sayers

Managing Director w w w. a u s d r i l l . c o m . a u

AUSDRILL

October 2016

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“Without the downturn we may not have had the traction to drive the changes we’ve made over the last two years” – Ashley Carey, Group Procurement Manager

Ashley Carey Group Procurement Manager Since 2010, Ashley Carey has led procurement at the Ausdrill Group and overseas all procurement related activities, direct materials purchasing as well as sourced products and services. Ashley started out as a hydraulic engineer, working primarily in the agricultural and mining industries where he was picked up by Ausdrill to focus on cost reductions in all technical categories. In a short time Ashley had worked his way through the organisation and now sits as the head of procurement for the group which has operations in 8 countries around the world. Ashley has overseen a dramatic transformation within the Ausdrill procurement function driven primarily by the most dramatic mining industry downturn in a generation. The transformation includes the implementation of a best of breed procure to pay system, moving toward a fully centralised procurement function, large scale operational cost reductions and the completion of a comprehensive supplier rationalisation project. Ausdrill is now well positioned as an industry leader on many fronts in the procurement space and with an upturn imminent can take full advantage of its new structure.

when it came to procurement, every one of some 58 individuals scattered across Australia was entirely focused on his or her own cohort of users and suppliers. The supply chain function was entirely process driven: suppliers may have been taking advantage of that segregation and charging higher prices, and service levels were not as good as they might have been. “Our first task was to understand what we were spending money on, and look at the total global spend of the group,” he says. Not surprisingly this exercise delivered sizeable savings. It also highlighted that suppliers were not always realising the spend level they anticipated. Capturing procurement data across the group began to give insight into the supplier community.

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AUSDRILL

October 2016

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“Coupa is probably the most cost effective software available on the market … it is a cloud based solution that works” – Renée Harrold, Financial Controller But the first thing to tackle was the group-wide structure. “We started on a three and a half year project to centralise procurement,” Carey says. “We built a communication channel through a basic SharePoint based requisitioning system, and rolled that out in a small group of companies, reducing their procurement workforce

Renée Harrold Financial Controller Renée is a CPA qualified Accountant currently based in Perth, Western Australia. Having completed a degree in Accounting and Finance at Edith Cowan University she works extensively in Western Australia and throughout West Africa in the Mining Services sector. Renée takes a hands on approach when developing operational focussed financial solutions in the mining & energy services sector.

from eight to two. It was the start of something big for Ausdrill.” This was a key moment because it enabled his team to convince the board, generally conservative in attitude, of the enormous savings potential of IT – he identifies this as the point where innovation tailored to the business, as opposed to taking the cue from its large mining clients, started to be accepted as a strategy that could be applied across the group. Coupling with Coupa After 42 months, Ausdrill had a centralised procurement function, administered by thirteen people, four in Kalgoorlie, one in Queensland and eight in Perth. The workload is w w w. a u s d r i l l . c o m . a u

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AUD

$744 Million no lighter than when 58 people were needed to handle it, despite the market downturn he points out. The quest for technology-based solution was clearly essential, though arriving at the right one took some effort. The industry has a number of incumbent solutions including Ariba, Quadrem and Basware – Ashley Carey and the team embarked on a two year project to identify the best partner for Ausdrill, visiting government, private, finance sector and of course mining users to analyse exactly how these solutions integrated with their core systems and how easy they were to use. In the end, it was a bold decision to pioneer a system that had not previously been adopted by any Australian company. There was a risk to choosing a cloudbased solution when Ausdrill’s existing Pronto ERP system had not been asked to integrate with any external

Ausdrill annual revenue (12 months to 30 June 2016)

software, but in the end the US based Coupa ‘value-as-a-service’ platform ticked all the boxes including scalability, flexibility, ease of use and return on investment. “Coupa is probably the most cost effective software available on the market,” says Renée Harrold. “Since we adopted Coupa, more of the majors in Australia are looking at it. It is a cloud based solution that works.” She and Carey have been jointly project managing the phased implementation and have found it infinitely adaptable. It delivers on the original requirements – for example it took only 18 months to roll out to some 1,300 users in 18 diverse businesses, and since it takes up little bandwidth it’s ideal for field use over tablets and handheld devices – but like a mining resource ‘open at depth’ it can be expanded by its users. Phased implementation helped

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AUSDRILL

the businesses to digest the new programme gradually agrees Ashley Carey. â&#x20AC;&#x153;We introduced electronic requisitioning through from a request to a purchase order. The actual receipting of goods was still

October 2016

happening in our Pronto ERP and we simply matched that back in to Coupa so we didnâ&#x20AC;&#x2122;t have to train any of our stores people on how to receipt. On the supplier side, we tried it out in a couple of larger businesses, so about

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“We tell them that you can search like you do on Google and buy like you do on eBay” – Renée Harrold, Financial Controller

70 percent of the invoices for these two subsidiaries are now loaded direct by their suppliers. Part of the vendor optimisation programme we are embarking on now will look at how to integrate their systems with ours so

it takes out more manual handling.” Training was relatively straightforward, continues Renée Harrold. “Ashley and I conducted one hour sessions in rooms around Australia. We showed the team the procure-to-pay picture

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and how Coupa sat in that picture. is not limited by geography by We then presented some examples helping other Coupa users around relating to the people we were training the globe. “It’s almost like a crowd – for example with workshop fitters sourcing platform,” says Harrold we would focus on the types of parts who represented Ausdrill at the San they work with. We set up a Coupa Francisco Coupa Inspire event. “Users blog and discussion forum on our can log on and download features that intranet where people could find a they like and find useful. They can get one page ‘how to’ guide, print it into the community and influence out and put it on the wall. its future - that is how it has That was enough to get developed, by being led them started using by the users rather the system. We tell than presented as a them that you can centrally prescribed search like you do package.” on Google and buy The investment Number of like you do on eBay.” decision has been employees at vindicated, adds Carey. Ausdrill Innovation allowed “The Coupa overlay Coupa users are Coupa has been the bedrock of our developers, a fact quickly picked transformation, allowing us to refine up at Ausdrill, which won a Coupa and automate our processes. Our Innovation Award in May this year for target is 70 percent automation of the the way it has rolled out the system procurement processes, and that will and pushed out its boundaries. One only need four full time procurement of Ausdrill’s systems administrators officers, balanced by a few more James Bargerbos was declared people in the group dedicated to Coupa Community Champion for contract management and cost demonstrating that community optimisation. That is the next step in

3,800

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AUSDRILL making this a truly lean company.” Attention has now turned to a vendor optimisation programme. Here the target is to knock a nought off the current 4,000 strong vendor base, with 80 percent of the spend focused in between 50 and 80 key partners. “We are taking this journey hand in hand with these vendors because we want them to reap the benefits of cutting out manual processes and communicating effectively over systems that talk to one another. Our vision is to be able to transact seamlessly with these partners, with minimal human intervention.” The supplier community needed some convincing to get them on board. Carey and Harrold travelled the length and breadth of Australia

October 2016

with a roadshow at which every vendor had the opportunity to learn at a face to face session and have their questions answered. Some reluctance was to be expected. Suppliers often have to pay fees to access client systems, and even have a percentage of each invoice passed to them. With that in mind, Coupa is free to Ausdrill’s vendors. Ausdrill has become a more dynamic company at all levels. It is more competitive. This is a business on a never-ending quest for improvement. By the end of this year all the Australian businesses should be equipped with the hardware they need to move out of paper-based requisitioning and getting used to completing a purchase in minutes

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instead of hours. In 2017 Carey wants to see Coupa rolled out to the African business, something that will present a new set of issues to integrate it with the Pulse ERP used there. The system has already paid for itself, but Harrold and Carey are hungry to see it do much more. “As a global company, we need a global procurement programme.” Coupa is delivering value in ways not foreseen when the decision was made to invest in it. The data from the field is already making management information and schematics available across Australia, and further innovation in in sight. For example, in the near future Ausdrill’s field staff will be able to order purchases directly from exploded diagrams – meaning a part can be

ordered at a touch with no form filling. Coupa is just a tool, but it is one that has given all its users the ability to proactively pare down cost, save time and make processes leaner and more dependable. They will have to get used to taking more control over the outcomes of their work, but that change is gathering traction, says Ashley Carey. “Other contractors in Australia are looking at what we are doing and taking notice. The more people we can get behind us the more we can push the tool to do more things. I have no issues making the mistakes and overcoming them because I am convinced that will help us stay ahead of our competitors.”

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Values-based approach keeps HSE Mining on top Written by Sarah Megginson Produced by David Kulowitch

HSE MINING

“We’re preparing ourselves to be absolutely match fit, for when new opportunities come along and conditions improve” – Allan Fidock, Managing Director

October 2016

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Key People Allan Fidock

A leading provider of large-scale mining solutions to Australia’s major resources companies, HSE Mining has embarked on a continuous improvement program that has seen it emerge as a flexible, safe, lean and client-responsive company

Managing Director Allan has worked at HSE Mining since 2014 and as the Managing Director, leads and oversees the entire business including financial management, strategic planning and operational control. His key responsibilities are: • Driving the organisational strategy and values, with improving safety of fundamental importance

HSE

Mining is known for its expertise in providing prestripping and mining services in coal, iron ore, copper, zinc, nickel and gold mining. It also owns and operates significant fleets of ultra-class and ancillary equipment. In the last two years, the company’s focus on improving every aspect of the way it does business has been its strongest asset. As a mining services operator that provides everything from supply equipment to human capital to maintenance, HSE Mining is a small but agile player in the mining industry, which gifts it the ability to be flexible and responsive in line with clients’ requirements. This unique point of difference has allowed the company to “emerge a stronger and fitter company after what has been a pretty

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• Building long term relationships with clients to establish HSE Mining as a trusted partner • Identifying and isolating key business issues and developing these to realise strategic improvements with demonstrable outcomes • Actively contribuing to the communities in which its employees live and work With over 35 years’ industry experience, including committee appointments as a board member of Australian Coal Industry Research Ltd and Queensland Resources Council, Allan provides the company with significant knowledge of operating mines of a substantial output. 49

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tough 18-24 months in the resources sector,” says Managing Director Allan Fidock. Fidock, who has worked in the mining industry since 1980, began his career with HSE Mining in August 2014, first as General Manager of Mining Services and then as Managing Director. “We pride ourselves on our nimbleness to accommodate our clients’ requirements. We aim to provide the right solution they require, whether it’s the supply of equipment, expertise or a total service provision solution, so we are flexible in our approach,” he explains. “Recently, like all of our clients and competitors, market conditions have forced us to relentlessly drive improvements in our operations. There were a number of areas where we could see we could substantially improve.” “The first area of focus was improving our safety performance. I am pleased we have made substantial improvements in lead and lag indicators, which I believe are now industry leading. This result is a credit to our employees who benefit from a workplace where incidents are uncommon and they can finish their work days without injury. During the past two years we’ve spent considerable effort embedding safety as part of our day-to-day operations, because we understand that safety excellence equals operational excellence. Safe operations are essential to attract and keep the

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Key People

Paul Gold Finance Director Paul has worked at HSE Mining since 2014 and is responsible for the Finance function. He is a commercially focused CFO who has developed a disciplined approach to his work. A clear understanding of good business practices including timely reporting, strong project management disciplines, a focus on quality, risk and stakeholder management. His key responsibilities are: • commercial management • strategic planning • management and financial reporting • budgeting, planning & forecasting • risk management • company secretarial and legal • board and executive reporting • procurement • interest in business process improvement with a systems focus Paul has been with the Swire group for over six years and has over 25 years’ professional experience.

“We needed to have more assurance around our procurement, both in terms of ensuring we’re getting right quality for the best price … and also ensuring a consistency and timeliness of supply and managing our risk” – Allan Fidock, Managing Director

October 2016

MINING

best employees and for customers to consider you for contracts.” “Outside of safety, our improvement program has focused on improving processes to maximise efficiencies, reduce costs and increase productivity.” HSE Mining has focused on four key areas: inventory management,

strategic procurement, maintenance cost management and data capture. At the outset, there was only one way to tackle inventory management, Fidock explains, and that was to strip back to basics. “We analysed item by item what we had on hand, what we were ordering and if we were using the

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HSE MINING

Year founded

1999 parts we were ordering. The goal was to understand what stock we have in place across half a dozen sites, so we could implement an easily repeatable process to improve our inventory program,” he says. “Now we’re systemising that process across our sites, so we’ll

October 2016

have a standard approach.” In taking count of inventory across various sites, “there were a few surprises”, Fidock admits. For instance, he found that they had more stock than they expected, in terms of both quantity and value. “It’s been a very valuable process,

Key People

MINING

Chris Elston Executive General Manager People and Culture Chris has worked at HSE Mining since 2014 and is responsible for the People and Culture function including strategic advice and operational support to the National Leadership Team/Senior Site Leadership teams on the full continuum of HR practices. His key responsibilities are: • Development of a strategic People and Culture plan that includes as sub sets, a Workforce Plan, Learning and Development Plan and an Internal Communication Plan • Close collaboration with the Managing Director to develop and implement a restructure of the Leadership Team in order to position the company to meet future business challenges

as we’ve been able to fully understand the breadth of assets we have at each of the different locations where we have contracts. For our customers, this means faster, leaner asset maintenance as we can source a part from another site rather than having to order immediately from the supplier,” he continues. After this process concluded, the next step was a more strategic procurement program, a part of the

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• Undertaking a cultural transformation to evolve into a contemporary organisation underpinned by a strong values set • Developed and implementing a reengineering of labour rates With over 30 years HR experience, Chris has a strong focus on driving high performance capability across the business and building talent strategies. Chris leverages networks across HSE Mining and with external stakeholders to build alignment and ensure that company values are maintained.

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business that HSE Mining “hasn’t had as a capability up until now”. “We felt we needed more assurance around our procurement, both in terms of ensuring we’re getting the right quality for the best price for the parts and materials we procure for our business, but also ensuring a consistency and timeliness of supply and managing our risk, in terms of supply contract terms and conditions,” Fidock says.

“Over time we’ve had many, many different suppliers for similar parts so we needed to rationalise: what are the key groupings and how can we get a more orderly arrangement around the companies we trade with? “We are still assessing our current spend, looking at key suppliers, and approaching them for opportunities for improved contracts,” Fidock adds. “The key here is to work closely with suppliers to find the most timely and

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“…we’ve spent considerable effort embedding safety as part of our day-to-day operations, because we understand that safety excellence equals operational excellence”

Tod Mathews Executive General Manager Operations

– Allan Fidock, Managing Director cost effective outcome, not simply a cost reduction which can be counter productive when the ultimate result needs to be sustainable for all parties.” There’s much commonality across the areas of inventory management and procurement, and they go hand-in-hand with HSE Mining’s third pillar of process improvement: maintenance cost management. “Maintenance is something we’ve always been really proud of, in terms of our ability to properly maintain equipment to a great standard. But that said, everything is open to review,” Fidock says. “Those are the key areas we’re working through now, to give us confidence that we’re moving in the right direction.” Lastly, the final piece of the puzzle as HSE Mining consolidates, is a revamp of its data capture and processing systems. “Historically, the integration of our claims

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Key People

Tod has over 25 years’ mining experience covering various commodities including coal, gold, nickel, and chromium. Over the years, Tod has held numerous technical and operational positions with significant experience in open cut coal mining for both owner and contract mining companies. Tod oversees the daily operations, including production and maintenance, of our mining contracts by exercising leadership that empowers site project managers in the delivery of client requirements and maximises the capacity and resources of HSE Mining. As a first priority, Tod champions our safety culture and integrates safety into all operational activity to ensure visible safety leadership at all times. Tod drives productivity improvements and cost saving activities across operations, continually identifying and implementing strategies to maximise resources and deliver the best results for HSE Mining and its clients.

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data into a format that suited our client was proving to be problematic, and we could also see opportunities to improve our efficiencies and capture our own data better,” Fidock explains. “For instance, each of our contracts has different conditions around payment, and at the end of each month, we need to collate data accurately to ensure claims are provided to our clients efficiently and effectively. We now have a program to capture the right data and provide our customers with the information they need quickly, consistently and efficiently, while also leveraging that information to continue improving our own processes.” There remains “a whole range of opportunity out there” to adopt further technologies, to enable processes within their business that have historically been largely paper-based, and Fidock is exploring opportunities to streamline day-to-day operations. All of these elements, which have been focused on driving excellence in operations and continually improving processes, have combined to put the company in the position of strength it is in today. “The driver behind these programs is the fact that we’re preparing ourselves to be absolutely match fit, for when new opportunities come along and market conditions improve,” Fidock says. The relatively new ownership structure is also helping HSE Mining to build upon a firm foundation for future success.

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Key People

Keith Butler General Manager Safety Keith has over 30 years’ experience in heavy industry, civil construction, mining, oil and gas including 10 years’ experience in Queensland Government in occupational health, safety and human resources. His expertise and role at HSE Mining is based on the following key areas: • strategic safety management • behavioural based safety and BBS program development • safety, quality and environmental management systems and third party accreditation • project planning, project builds and safety, quality and environmental planning • safety leadership, coaching and mentoring • injury management and common law management • risk management and incident investigations Keith has been with HSE Mining since 2014 and holds a Masters of Applied Science (OSH & Environmental) Management, Graduate Certificate of Employment Law, Graduate Certificate of Risk Management, Bachelor of Business, Diploma OHSM and Diploma of Project Management. Keith is also currently completing his final year of Doctor of Health Science with QUT.

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“Three years ago, HSE Mining was has not been a difficult process – bought by the Swire group. Previously because that culture and values we were owned by one entrepreneurial already exist in our business.” and successful individual who As well as reinforcing its started the business 25 values, new ownership years ago. We have has put a floor under evolved from that HSE Mining’s financial Approximately foundation into stability, he adds. a business now “This is still a owned by a very very competitive market. Everyone large international, Number of Employees is really tentative family-owned at HSE Mining around calling the company,” Fidock says. recent improvements in “Swire brings a strong commodity pricing as the ‘end’ values base to our business. of the bad period, but regardless We’re in the middle of reinforcing the strong values of what is a 200-year-old of economic conditions, our goal is to continue to operate safely, cost family business and for us, integrating effectively and cost efficiently.” those values into the way we work

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Energising eCommerce: QNETâ&#x20AC;&#x2122;s Digital Transformation Written by Jennifer Johnson Produced by Kiron Chavda

QNET

The eCommerce sector is expanding rapidly, and so are customers’ expectations of eStore functionality. QNET’s CIO and CTO have devised a plan to conquer the industry — and it is about to go live 66

October 2016

Malcolm Chiu, Chief Information Officer

TECHNOLOGY

“

Changing a global platform is not a small initiative,” says Malcolm Chiu, the Chief Information Officer of Hong Kong-based direct selling titan QNET. In the rapidly-expanding world of eCommerce, user experience is a crucial factor in turning casual browsers into buyers. Chiu, and the firm’s Chief Technology Officer, Ivan Woo, have long understood the role of personalisation and agility in creating a dynamic eStore. Four Annual years ago, they also realised that QNET’s existing legacy platform could not accommodate many of the features that customers were coming to expect from an online shop. In 2012, QNET set about the mammoth task of creating an entirely new Next Generation Platform (NGP) — which is due to launch this year. “This is the largest IT project in the company’s history,” Chiu explains. “We had our entire platform built in-house about 10 years ago and we grew that platform to serve hundreds

of countries and many languages.” However, as time went on, there proved to be some legacy issues with the firm’s original platform. “It was really imperative that we transform or migrate the platform to a much more modern and robust solution,” Chiu says. QNET’s unique sales model and wide global reach requires a highly personalised web platform capable of producing detailed analytics. The company Revenue relies on teams of independent representatives (IRs) to sell its products to consumers in their communities. The IRs are then compensated based on the sales volume of their referrals and the revenue of the other IRs in their teams. Retail customers can only purchase QNET products if they are given access to a representative’s referrer ID. “We sell many different kinds of products,” says Chiu. “From vacations all the way to cosmetics. And we have many networks — they build

QNET

$430 million

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Digital Transformation Is Not A Big Bang Theory Entering the 21st Century One Step At A Time As a lifestyle business in the 21st century doing 100% of its business transactions online, QNET’s goals to provide higher-quality services and better customer support are tightly connected with its digital development. When you are aiming for such all-inclusive advancement, choosing the right partners is crucial. Delaware|Digital is proud to be selected as a prime partner of QNET in this process, co-creating the Next Step for Sitecore (NS4S) programme. While moving forward in the digital growth and transformation, a couple of learnings occurred, which may be useful to any other companies planning such transformations. Delaware|Digital has introduced their Digital Growth Map which makes it clear that it is crucial to work on three axes, in order to be successful in digital transformation: - Channels - Data - Governance Companies don’t have to necessarily move at the same pace along each of the three axes, but significant steps need to be made when you want to start changing the company from within, like QNET did. 1. Reach your channel objectives by building a solid foundation Digital transformation is an ongoing process that keeps improving, changing and disrupting business operations. When developing a digital ecosystem, it is important that the setup of the core system and technical architecture is designed for the future – for instance, in order to provide customers with personalised advice, which is one of our core objectives. This is the reason why QNET started by selecting the Sitecore-Commerce system as a future-proof solution to develop its digital channels. Essentially, it is the foundation of its overall optimisation and prosperity. 2. Single source of truth Understanding your customers and their preferences is crucial in order to create relevance for your digital channels. Collecting this data is not really an issue anymore. The challenge, however, is bringing the data together in order to create context and generate actionable insights. Data is

often scattered in silos, which prevents managers from using it efficiently. This is the reason why you need to work towards a single source of truth for all your data: where do you store your customer information, your product information, your pricing information, … what systems need access to which parts of the data? A good definition of actionable data is, good prioritisation of sources of information and confident decisions on how to use it, which are all crucial in a successful digital transformation. 3. Move from silos towards integrated collaboration The development of a sustainable digital ecosystem requires the support of every department within the company. That is why a general mindset shift is so important in reaching digital maturity. We see a strong correlation between a customercentric organisation, overall digital maturity and ultimately, revenue. This is an ongoing project where the left and right part of the brain need to work together, where IT departments and marketing specialists together have to focus on customer satisfaction. Within QNET, this is tackled by appointing two drivers in the digital core team, Ivan Woo as IT driver and Lordever Digan as Business driver. Customer Advocacy to tie everything together When you look at the picture on the left, you can see that even a hundred years ago, sales was not about pushing a product, but about creating an immediate connection with the customer. What does she want, what experience is she looking for? This is still true today. By creating relevant and personal “moments” for a customer throughout his/ her journey with your company, you make him / her feel closer to the brand. A single customer that recommends a brand to his family and friends is worth more than any ad you can pay for. When your business is ready to rise up to the challenges of the 21st Century, use the above points as guiding principles to help you take the steps in digital. QNET is the perfect example of a company that shows impressive results.

QNET

their business and target customers on different segments — so they have many different needs when they go back to the shop.” Woo explains that QNET’s legacy platform hasn’t evolved as quickly as customer needs and expectations. “Our platform was created ten years ago, so at that time there was not as much social media and not much analytic information,” he says. “Basically, we built a platform that was highly customisable, but heavily dependent on IT. So down to a single price change or a single banner change, everything has to be done by IT.” According to Woo, IT risked becoming a “bottleneck” for business growth at the organisation. One of the primary reasons for the creation of the NGP was to free QNET’s

October 2016

Physio Radiance

TECHNOLOGY

tech professionals from dayto-day web maintenance tasks and afford them more time to focus on development. The firm has partnered with web content management provider Sitecore for the creation of its new platform — which has more recently become known as Next Step for Sitecore (NS4S). “Our second objective is to bring agility and scalability to a more modern eCommerce platform,” Woo explains. “With Sitecore technology this is very much achievable. They are one of the best in analytics and with their structure and mechanics we can easily scale up.” With NS4S, QNET will also be

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CIMIER QNETCity Automatic Watch able to more actively engage with the world of social media. At present, the firm makes use of platforms like Facebook and Instagram purely for social purposes and has not been able to convert these platforms to sales portals, but there are plans to expand promotion to a wider range of digital networks. “We want to catch up,” Woo affirms. “All the things we talk about: digital transformation, social media engagement, mobile-friendliness, are features that our legacy platform lacked. With Sitecore solutions this is something that we can achieve.” Chiu summarises the anticipated benefits of the NS4S platform

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Every industry has a digital disruptor. Let’s make it you.

HITACHI is a trademark or registered trademark of Hitachi, Ltd.

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“

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Hitachi’s end-to-end solution, from server and storage to backup, has fundamentally transformed our customer service platform, enabling us to increase customer loyalty with new levels of efficiency, responsiveness and reliability. We are confident that this improved customer experience will help create even more business opportunities and drive new revenue growth in the future. Malcolm Chiu, CIO, QNET

”

TECHNOLOGY

using “three As” — attractive, agile and analytical. The company worked alongside a team of web designers to ensure that its new, customer-facing site is as visually enticing as possible. Secondly, QNET marketeers will be able to carry out a number of initiatives themselves, including promotions and product updates, with minimal reliance on IT intervention. The third expected advantage comes as the result of big data analytics. “The platform will allow us to collect valuable information about how customers engage with our sites,” the CIO says. “We will be able to get a lot of insights to help us determine what actions we need to engage customers more effectively.” Development of the platform is expected to be completed in late October, with the help of Delaware|Digital, one of the most experienced partners on Sitecore technology. Pilot sites will launch in Sri Lanka and the United Arab Emirates in November. The two countries were selected because they are among the top performers in QNET’s two respective business models and what they refer to as world and local plans. The former involves transacting in US dollars, whereas the latter allows sellers to trade in local currency and be subject to local taxation. Business in Sri Lanka is conducted under the local plan model, and the island’s triple-language requirements make it an ideal place to gauge just how effective

“Our second objective is to bring agility and scalability to a more modern eCommerce platform”

Ivan Woo, Chief Technology Officer w w w. q n e t . n e t

QNET

the new Sitecore capability translates. “These are key markets for us,” Chiu says. “In the direct selling world, our hybrid distributor-consumers are also earning income and we have a high level of income-earning distributors in the UAE. And we have a very cohesive team in Sri Lanka. We can have more input in these two countries as we launch.” QNET’s digital transformation isn’t solely

Prana Resort Nandana, Koh Samui, Thailand 74

October 2016

limited to the new platform, either. It is a holistic revamp of the way the firm presents itself across multiple digital landscapes. Earlier in the project timeline, Woo supervised a significant data centre merge, which saw a 10-year-old data centre integrated with a more modern one at Hong Kong’s CyberPort site. In the process, some of the company’s ageing data equipment was replaced. Woo is also currently exploring the best ways to utilise cloud technology within the business.

TECHNOLOGY

“The programme has multiple facets,” Ultimately, Woo and Chiu hope the explains Chiu. “We have the main project will enhance how customers eCommerce website and perceive and interact with then we have the mobile QNET — but the duo has site. We also run a a larger goal in mind: commission engine “We believe we will where we distribute become a digital commissions leader in this industry,” to millions of Chiu says. Malcolm distributors around Chiu has since the world on a been promoted to was founded weekly basis. There COO, a position from are a lot of elements to which he will continue to this digital transformation drive digital transformation that we’re embarking on.” into other areas of operations.

1998 The year that

QNET

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How digitalisation is transforming the

Bank Islam Brunei DarussalamÂ Written by Wedaeli Chibelushi Produced by Mariana Lee

Business Review Asia speaks to Gyorgy Ladics, COO of Bank Islam Brunei DarussalamÂ (BIBD) about how the bank is embracing digital engagement.

BUSINESS SERVICES

“

Digital engagement” can seem like a buzzword, but to the Bank Islam Brunei Darussalam (BIBD) this two-word concept is reinventing its operations. To find out more, we spoke to Gyorgy Ladics, BIBD’s Chief Operations Officer. Ladics has held several demanding roles, such as Chief Technology Officer at Barclays and Head of Operations and Technology at Citibank. Whilst working in the financial sector, Ladics has voyaged around the likes of Central Europe, Russia, UAE, Egypt, India, Pakistan and Singapore. Currently, Ladics is using the knowledge gained from these experiences to help execute BIBD’s digital engagement initiative. Ladics begins with the basics. “BIBD has a fullyfledged banking licence. It’s Brunei’s largest bank and leading full service Islamic financial institution.” he tells us. “In addition to consumer and corporate businesses we also have a quite significant treasury & global markets and merchant banking business lines”. With an asset base of B$ 7.5 billion BIBD remains the largest bank in Brunei Darussalam and plays an important role in supporting the country’s long term development plan, known as Brunei vision 2035. When did digitalisation become a focus for BIBD? According to Ladics, BIBD started a transformation journey five or six years ago. “BIBD was pretty much a bank that provided services through branches (so called traditional banking) where the customers interact with the branch.

‘With an asset base of B$ 7.5 billion BIBD remains the largest bank in Brunei Darussalam and plays an important role in supporting the country’s long term development plan’ –D r. Gyorgy Ladics,

Chief Operating Officer

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1 In every now in one #

Let the transform

Dell, EMC and other trademarks are trademarks of Dell Inc. or its subsidiaries.Â

ything e place.

mation begin.

BANK ISLAM BRUNEI DARUSSALAM (BIBD)

When you need to make a transaction you come to the branch, or you can go to ATMs.” BIBD recognised that something was missing – it was limiting itself. “In a small market like Brunei, we had significant competitors, there’s all the big global or regional names with strong well-known brands, international best practices, and strong technology so we need to ensure that BIBD is up to the challenge,” Ladics explains. BIBD set a strategy to become the bank of choice, earn customer trust, provide signature services and use “technology as a differentiator” – a strategy which enables sustained and healthy growth as well as market leading position. “The goal is to be the bank of choice

October 2016

“The goal is to be the bank of choice and digital initiatives are key enablers for that” – Dr. Gyorgy Ladics, COO

BUSINESS SERVICES

Calls received more than

300

and digital initiatives “We’re now present on Thousand are key enablers for our customer’s phones. annually that. We are really focusing We started mobile banking in on the changing behavior 2012 and it has gained a very rapid and needs of our customers”. adoption which by now has reached Ladics informs us that BIBD is well a 70-75 percent penetration of mobile on its way to reaching that goal. The usage in our customer base. We have bank has changed the way it looks, the introduced digital merchant platforms way it serves customers and the way so you can use your phone while paying its services are accessed. Rebranding, a merchant,” Ladics commented. branch redesign and refurbishments, BIBD also introduced an enterprise smart branch initiative, establishment loyalty and rewards program in of a robust contact center and moving November 2013. BIBD customers towards digital are all key contributors could use their Hadia Points for bill to success. We ask Ladics to expand. payments and top-up services. A wide

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Tel: +60 3 7721 6066 cindy.yong@silverglobe.com michelle.wongch@silverglobe.com Level 2A, KPMG Tower, First Avenue Bandar Utama, 47800 Petaling Jaya Selangor, Malaysia www.silverlakeglobe.com

BUSINESS SERVICES

range of eVouchers are available to redeem points. Guided by its “digital engagement roadmap,” the bank introduced a mobile advertising platform the following month. The interface featured interactive content and push messaging. April 2014 saw the introduction of virtual pre-paid credit cards, for online shopping use quicker transfers. Throughout this period, the number of people logging onto BIBD’s mobile banking app steadily increased. Ladics tells us that BIBD customers interact at least 18 times in a month via digital channels and 70 to 75 percent of the customer base uses digital regularly. “I think this is a great story!” Ladics enthuses. “This sort of penetration and the popularity of digital services speak for themselves. Despite being so passionate about

BiBD Mobile transactions more than

2.5 Million annually

“We started mobile banking in 2012 and it has gained a very rapid adoption which by now has reached a 70-75 percent penetration of mobile usage in our customer base” – Dr. Gyorgy Ladics, COO

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BANK ISLAM BRUNEI DARUSSALAM (BIBD)

October 2016

BUSINESS SERVICES

its “digital evolution” (as Ladics calls it), BIBD is keen to maintain its physical branches and presence. “It’s important to keep the branches upgraded and service customers seamlessly, irrespective whether digital or face to face.” affirms Ladics. Card transactions BIBD has transformed, refurbished and more than “digitally enabled” its branches to a “serviceoriented, functional, contemporary style”. The Million refurbished branches are now more spacious, annually modern and (one might say) fashionable. However, looks aren’t everything. BIBD’s branches have benefitted from digital engagement too; new digital banking platform, re-engineered business services allow consumers to experience “express banking”. Using shopping carts adopted from ecommerce, they can purchase products and services while in the bank. The focus is indeed on human interaction, demonstration and explanation of products and services. Ladics explains: “You don’t come and fill forms. In the age of digital transformation, we also went in the direction of a smart branch, for which we got an award from the Asian Banking Magazine. There’s no need to fill out any forms. When you come to see the customer representative (either to open an account or for additional services), the process is like an ecommerce tour with product briefs where you can pick and choose your services.” In order to enable self-service and support customer digital engagement, BIBD has built a call center which later was transformed to

2.3

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a contact center to further boost customer interaction. “For the generation of WhatsApp/ WeChat/Line”, the centre enables consumers to instant message or call contact centre agents with any issues they may have. BIBD boasts a “secure, authenticated digital conversation” via its Mobile Application. Ladics summarises: “We’re opening up all the channels, both face-to-face and digital. We are well aware of the cyber threats in the industry and we have to protect ourselves and our customers from any potential dangers. Our IT infrastructure and data centre is upgraded to protect our data and protect our customer’s information”. By putting customer first and valuing its customers, BIBD manages to stay abreast of the competition. According to Ladics, BIBD successfully retains customers and has hardly lost any customers to competitors. In his own words, BIBD is “opening the door to new prospects while retaining its existing customer base”. Ladics added: “Throughout the past few years, we become more and more aware that customers are choosing banks and service providers based on service levels, and also simplicity and easiness to access or obtain services plays a key role”. Finally, Ladics tells us that BIBD not only values its customers, it prizes its partners too.

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BANK ISLAM BRUNEI DARUSSALAM (BIBD)

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“We believe that digital banking on the payments, deposits as well as on the lending side will definitely grow and be significant. Also we might see that digital banking services will be seamlessly integrated or packaged into the offering of other bigger digital players” – Dr. Gyorgy Ladics, COO

October 2016

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BiBD Online transactions

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He names Silverlake Also we might see that Thousand Digital Economy and digital banking services annually the entire Silverlake will be seamlessly integrated Group as key backers who or packaged into the offering of are “truly driving the innovation and other bigger digital players (social digital banking services”. Ladics also media, digital chat providers, Telco, mentions EMC, RSA and IBM – they eCommerce giants etc...)” he says. operate BIBD’s data centre and help BIBD’s digital journey continues; the bank cope with the increase it is far from completion. Building a in processing requirements. seamless omni channel customer Ladics rounds off with his thoughts experience, forming strategic alliances on the future. “We believe that digital with FinTech and other market players banking on the payments, deposits are coming on the horizon. as well as on the lending side will definitely grow and be significant.

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Welcome to the Fourth Generation Written by Wedaeli Chibelushi Produced by James Pepper

O O R E D O O M YA N M A R

Earlier this year, Ooredoo became the first mobile operator to offer 4G services in Myanmar. Business Review Asia quizzes CTIO John Farhat about fending off the competition, connecting with customers and negotiating with regulators.

yanmar’s telecom sector is developing at an unprecedented speed, with companies competing to serve the increasing data demand in the country. We speak to Ooredoo Myanmar, a telecom firm passionate about providing the best 4G service in Myanmar. Ooredoo launched in August 2014, and is part of a wider international brand with operations spanning the Middle East, North Africa and Southeast Asia. “We give you reliable experience”, John Farhat, Chief Technology and Information Officer of Ooredoo Myanmar tells ABR. Sure there’s competing telecom firms in Myanmar, but Ooredoo gives its customers “the latest technology and an affordable service. We

October 2016

offer a premium product at an affordable price, which is different to our competitors. With us we promise you a constant and reliable experience”. CTIO for approximately 2 and a half years, Farhat

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describes his department at Ooredoo. “Right now, we look at technology as a holistic department. There’s no longer a split between Network and IT, there’s a lot of convergence between these two departments. I run both of these functions in a more efficient manner… understanding that we’re serving a population of over 52 million.”

The fourth generation “You know the difference between

4G and 3G, right?” Farhat asks. He gives us a recap – 4G is the fourth generation of mobile technology, following on from 2G & 3G. 3G allows us to access the internet effectively through our mobile phones, but 4G makes it much quicker “especially when it comes to high definition videos, games and such,” Farhat

“The market is hungry for speed and quality service. This is what 4G is now providing. We're thrilled with the uptake, so far, and look forward to expanding even further when more spectrum is granted in this market” – Rene Meza, CEO of Ooredoo Myanmar

O O R E D O O M YA N M A R

adds. Alongside personal benefits, 4G also assists businesses – video conferencing and bank transactions are made easier. Better connection gives SMEs and small companies the ability to expand, and business people can work remotely. Why spend time and money flying to long-distance meetings when you can video call from your office? On an even wider scale, 4G benefits whole countries. Farhat explains, “it enables enterprise and gives countries better infrastructures to expand their economy.” Exponential demand According to Farhat, mobile data

services in Myanmar were very different in the recent past. “We used to drive around and see people having limited access to very lousy service,” he describes. Now, when Farhat surveys built-up areas, almost everybody has a phone in their hands. “What’s interesting about this country is that the smartphone penetration compared to surrounding countries is very high, taking into account that we just

October 2016

introduced the services 2 years ago”. Although Farhat says Myanmar is relatively advanced when it comes to mobile technology, multinational networking company Ericsson lumps the country with its neighbours when conducting its Mobility Reports. Nevertheless, Ericsson’s studies are useful for acknowledging Ooredoo Myanmar’s potential – the 2016 report shows that in Southeast Asia and Oceania, 4G mobile subscriptions are expected to increase to over 40 percent from a current 5 percent by 2021. Why the huge increase? “People are hungry for high-speed data,” Farhat asserts. “People are hungry for the knowledge they get from connecting and being connected. It’s an incredible growth that took everybody by surprise”. Future steps To adapt to this growth, Ooredoo

has extended its fibre optic network to over 12,000 kilometres. Its current network penetration rate is 86 percent. “The only constraint that we have currently is that we don’t

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The year that Ooredoo Myanmar was founded

1987

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have enough spectrum, but we’re having a discussion with the regulator about that,” Farhat comments. Spectrum is an essential resource for telecom operators. Available in bands, it carries traffic like data and voice. “We understand the importance of improving the economy, giving access to the people of Myanmar and encouraging us to provide them with the latest technology”. Farhat believes that more spectrum will be granted in the future, but for now Ooredoo is working strategically with its competitors to improve operations. “One of the most strategic projects is network sharing with competitors,” he says, a surprising notion considering Myanmar’s 4G market is the subject of fierce competition between firms like Ooredoo. However, Farhat explains that it is possible to stay ahead

“We understand the importance of improving the economy, giving access to the people of Myanmar and encouraging us to provide them with the latest technology” – John Farhat, CTIO, Ooredoo Myanmar

Mr. John Farhat, Ooredoo CTIO

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of the market while sharing with and gaining from competitors. He tells us: “We’re currently in discussion of sharing of sites, active and passive. Site sharing is eco-friendly…we share the same generator, we share the same power. Furthermore, it reduces our costs.” Rene Meza, CEO of Ooredoo Myanmar, echoes Farhat on the potential for 4G service in this emerging market. “We launched the first 3G only network, because we believed that Myanmar would embrace the internet, and that bet paid off. 80 percent of our customers are using data. The market is hungry for speed and quality service. This is what 4G is now providing. We’re thrilled with the uptake, so far, and look forward to expanding even further when more spectrum is granted in this market”. Along with becoming the first mobile operator in Myanmar to offer 4G services, Ooredoo celebrated reaching over 8 million users in 2016. Farhat tells us what the company has planned for the rest of 2016, and the future beyond that. “We want to continue enriching reaching people’s lives and providing a reliable service”, he enthuses. “We’re a reliable business - I don’t see that changing.”

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Proactive & paperless approach transforms Transdev As the leading public transport company that delivers services across Australia and New Zealand, Transdev is all too aware that driving efficiencies in IT will transform their business. Now mid-way through its technology transformation journey, it admits that there are still challenges ahead â&#x20AC;&#x201C; but there are also plenty of wins to celebrate to date Written by Sarah Megginson Produced by David Kulowitch

TRANSDEV AUSTRALASIA

ith an extensive and diverse public transport system that includes trains, buses, ferries, light rail services and coaches across Australia and New Zealand, Transdev facilitates over 145

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million customer journeys every year. Its savvy and digitally connected consumer base is increasingly demanding convenience, explains Transdev Chief information officer Simon Pearce. Consequently, new

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operational practices â&#x20AC;&#x201C; such as transitioning from a paper-based system to an automated control centre â&#x20AC;&#x201C; are just one of many changes Transdev is embracing on their technology transformation journey.

â&#x20AC;&#x153;We have rolled out a lot of initiatives, and one of our major focuses recently has been around rebuilding our business processes and applying solutions to the process. One of our first major projects was

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creating a centralized operational control centre with an, interactive kiosk for our bus operations in Melbourne, the first of its kind in the bus industry.” he explains. “What this does is it automates the process. Rather than using traditional paper-based resources for the task to be completed, our new systems provide a platform for processes to be automated, so that our people can use their time elsewhere in a more efficient way.” To be clear, transforming its tech infrastructure has been – and will continue to be – no small task. Pearce, who has been in the role for 18 months, leads a team of 24 employees across IT applications, architecture and service delivery, and their primary goal is to overcome technology obsolescence, while also achieving best practice solutions and platforms to optimise operations. “Some of the biggest challenges our business faces is around obsolescence of the existing technology platforms. Due to our organic growth in the region

Key People

Simon Pearce Chief Information Officer

many of our systems are aged and fragmented, so we’re focused on implementing a single source application portfolio,” Pearce says. “This is essentially a greenfield

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approach to delivering best practice for our operations which ultimately positively impacts our customers. In many instances we had to build from the ground up – so needless to say, it’s been a huge job!” The company is already seeing the fruits of their labour, as the changes in the way the business operates at a digital level have produced efficiencies already. “It’s very different from how it was; we’re evolving and leaving behind those paper processes wherever possible,” Pearce says. As with all information technology reboots, there has been an aspect of change management involved in their digital evolution. “There has also been some management around the way that we essentially present the

systems to the business, such as giving feedback to drivers around tech delivery,” Pearce says. “But there are huge opportunities around the automation of business processes and so that’s really the key for us, to reduce our application spread and simplify the way we do things.” Another key win for Transdev has been its broader business transformation program, which is being introduced in a number of the operations across the region including Melbourne, Brisbane, Sydney and Perth. The program sets out to review business processes and implement best practice, with ambitious aims of helping the company go from being an industry leader to becoming an innovative disruptor.

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“Our new systems provide a platform for processes to be automated, so that our people can use their time elsewhere in a more efficient way” When introduced in Melbourne and Perth in 2015, the program saw their asset management team leverage a proactive approach to maintenance. While traditionally maintenance on buses has been reactive – if something breaks, you fix the broken part – Transdev’s “reliability-centred approach” aims to predict potential pain points in advance This involves crunching data from both the manufacturer and from its own internal processes, to come up with a formula for a ‘Point-of-Failure’ curve. Transdev can then schedule maintenance and attend to repairs before a breakdown happens, which not only saves time and money but also ensures that the buses are available for services. “The business transformation program has been highly successful and involves bottom up and top down reviews, so we’re looking at how we can roll that out more broadly,” Pearce confirms. Central to its success to date in initiatives to business transformation and going paperless has been the consolidation of in house IT assets,

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Pearce says. Transdev now builds all of its infrastructure and solutions internally, as opposed to outsourcing IT, which has been their way of operating in the past. “The rationale around bringing everything in-housewas so we could get a grip on what we have across our organisation. We had nine different networks, many with substandard infrastructure, so it was complicated,

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but we’ve got a handle on that now,” he explains. “Whereas before, we were perhaps trying to make things fit into what we had, we are now focused on really making sure we have exactly what is required and delivering it in an agile manner.” Strategic partnerships have also been crucial to the success of their tech transformation, Pearce notes. Relationships with companies like

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Orion, Australia’s largest digital trunked two-way radio network, and Blue Connections, provider of best-in-class IT solutions, have allowed it to thrive. “Orion has been a great partner in helping us bring on board a strong digital radio solution. We’ve been working very closely together to ensure our businesses have ‘fit for purpose’ technology and we really believe they’re the best technology supplier for our solution,” Pearce says. “Blue Connection has also been a key supplier to us and a real key strategic partner, as they’ve had the ability to come up with software solutions in very tight timeframes. They deliver consistency – what they say they will deliver, they do deliver, every time.” From here, Pearce adds, the company is focused on providing their consumers with a platform that is all-encompassing, from traffic, to public transportation,

to commercial carriage. “We are continuing the digital transformation of the business by adding new and innovative technology,” he says. “We’re looking into automated vehicles, which is really exciting, and ways we can bring about a true digital transformation of the customer experience.”

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A sustainability success strategy As one of Australiaâ&#x20AC;&#x2122;s largest entertainment groups, Crown operates in a glamorous and fast-paced industry. However, itâ&#x20AC;&#x2122;s the things happening behind the scenes from a sustainability standpoint that may just be the resort groupâ&#x20AC;&#x2122;s most exciting story Written by Sarah Megginson Produced by Josef Smith

CROWN RESORTS

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n international resort group with entertainment complexes in Melbourne, Perth, London and soon to be Sydney, Crown offers some of the largest integrated resorts in the southern hemisphere. Here, the focus truly is on integration, with each resort comprising a casino, hotels, events rooms, restaurants, bars, shopping trips and other entertainment facilities. They’re exciting places to visit and experience, but for Jonathan Wood, these resorts represent a treasure trove of opportunity to make a positive impact on the environment. As Crown’s Group Manager – Sustainability, Wood manages a range of both short term and long tem projects that aim to manage and reduce the group’s environmental footprint. “Someone told me there’s between one and two million light bulbs in each Crown complex,” Wood says, “so it’s definitely a comprehensive job!” Having been in the role for six years, Wood has overseen the development of Crown Melbourne’s

CROWNEARTH, launched in 2015 as a way of both recognising and uniting the work the group has been doing in environmental sustainability since 2010. CROWNEARTH encompasses a policy, strategy, plan, actions and outcomes that signify and reinforce the group’s commitment to the environment in all aspects of operations, from choosing suppliers to emptying rubbish bins. “My overall objective is to minimise Crown’s environmental footprint and to make us one of the leading integrated resorts in the world, when it comes to environmental sustainability,” Wood says. “This boils down to four key areas: energy, water, waste, and a sustainable supply chain. My day-to-day role is managing those elements.” Currently, Crown has two new projects under development – Sydney is in the early design stage and a new hotel complex in Melbourne has gone through planning – while in Western Australia, a new sixstar hotel is under construction

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“A normal wok in a commercial kitchen will consume 1.4 million litres of water every year! Get rid of that, and you will transform your kitchen” – Jonathan Wood, Group Manager – Sustainability to complement the existing Crown Perth. These new developments represent a ‘clean slate’ from a sustainability perspective, as Wood and his team can implement solutions in the design phase. “In Perth, we’ve been able to implement a number of advanced strategies that tap into existing recycling streams and sustainable procurement processes, such as LED lighting and water efficient fixtures and fittings,” Wood says. “But we’re also able to implement quite an advanced room control system for the hotel, which basically monitors the room to see when people are present or not, using motion sensors. This helps to optimise the use of lighting and HVAC but it’s also customer focused. By monitoring whether the customer is present or not, it can tailor the messages the customer receives, schedule maintenance to be performed at optimal times and time the ideal delivery of services.” Within Crown’s existing premises, the team is forced to think a little more creatively to find

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Jonathan Wood Group Manager â&#x20AC;&#x201C; Sustainability

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sustainable solutions that can be introduced retrospectively. Back to those million-plus lightbulbs, for instance: when identifying opportunities to reduce energy wastage, the lighting was one of the first areas focused on, alongside heating, cooling and ventilation (HVAC). Wood explains that lighting usually accounts for around 10-15 percent of energy usage and HVAC around 50 percent, with the rest being equipment. “We’ve replaced around 80 percent of our globes in Melbourne and around 60 percent of them in Perth, moving from incandescent to LED. With advances in technology and the costs coming down, we’re also replacing the fluorescents as well,” Wood adds. “Since implementing our energy reduction strategies over the last five years we’ve managed to cut our lighting consumption down to around 35 percent of its previous

usage, and we’ve reduced HVAC by 20-25 percent. Travis Jones (HVAC Manager) and Steven Luxford (Building Optimisation Engineer) have been critical in producing these results together with our partners BUENO, Honeywell, Nuvo, EPM&C, AECOM and AE Smith.” While these numbers are impressive, they’re only the beginning for Wood, who says his team looks at the supply chain from every angle to ensure it is optimising opportunities to go green. “We’re not just interested in a better lighting solution: it’s the entire process from A to B that we analyse,” he says. “This means disposing of fluorescent lights in an environmentally conscious way, which can be problematic. There’s also a lot of junk out there, so we generally spend at least three months trialing each different light solution before we introduce it, to make sure the offering is right.”

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Water efficiencies have been achieved through simple but meaningful changes, including turning off all external water fountains, removing all external water features, upgrading all toilets to dual-flush functions, and installing waterefficient fixtures and showerheads in each of the hotel suite bathrooms. “We even went to water-less woks in our kitchen, which had a surprising but really significant impact. Incredibly, a

normal wok in a commercial kitchen will consume 1.4 million litres of water every year! Get rid of that, and you will transform your kitchen.” They now have rainwater storage capacity of 300,000 litres, which allows rainwater to be reused through toilets and irrigation systems, and Wood says they are contemplating expanding their water recycling program. Meanwhile, waste management has been “our biggest success

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“We’re doing some innovative work in terms of cigarette recycling… they get converted into plastic moulded products. Ironically, ours are turned into ashtrays” – Jonathan Wood, Group Manager – Sustainability

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At Veolia, weâ&#x20AC;&#x2122;re helping our clients turn their waste into a usable resource The circular economy is based on designing out waste, reusing and recycling everything we produce. To make the switch from a resource consumption mindset to one of a use-and-recover approach, Veolia provides businesses with innovative waste recovery solutions. At Veoliaâ&#x20AC;&#x2122;s Bulla facility in Victoria, weâ&#x20AC;&#x2122;re converting organic waste into compost that is used as a nutrientrich source of fuel to grow grapes in the Macedon Ranges. www.veolia.com.au

Resourcing the world

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story in the last 18 months”. With no fewer than 22 separate recycling streams, they’ve been able to improve their recycling rates from just 23 percent two years ago up to 70 percent earlier this year. Paul Humpries and Jeff Niemski from the Environmental Team have put huge amounts of effort into producing this amazing turn-around. “We’re doing some innovative work in terms of cigarette recycling. We work with Terracycle out of the US, and their motto is to recycle

things that no one else wants to. At Crown, cigarette butts are collected and they get converted into plastic moulded products. Ironically, ours are turned into ashtrays.” Another innovative recycling stream is their comprehensive garment and clothing reuse program, and they also recycle mattresses and electronic waste. While their results to date are very impressive, Wood believes there is still plenty of room to grow. “We’re now recycling 70 percent,

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“The level we want to go to is: where is the oil generated, to make the wrapping, which goes around the fruit that gets delivered to our restaurants? And where does that wrapper go afterwards?” – Jonathan Wood, Group Manager – Sustainability

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which is great, but there are further opportunities to explore. The ultimate target is zero waste and the next waste stream we’re looking at is recycling our gaming cards,” Wood says. “Across all of our Australian resorts we’re also introducing a building optimisation system that monitors the building’s performance and energy consumption instantaneously, with a number of algorithms in place to see where things can be improved. Instead of using human resources to monitor these processes, it’s automated – so the system might be able to see that someone left a fan on over the weekend in an empty room that should be switched off. This will be taking off in a big way over the next couple of years and

we’re looking forward to seeing what we can achieve with this type of ‘building diagnostic’ optimisation.” As signatories to the Australian Packaging Covenant, they are also always looking for opportunities to leverage a sustainable supply chain, Wood adds. “The level we want to go to is: where is the oil generated, to make the wrapping, which goes around the fruit that gets delivered to our restaurants? And where does that wrapper go afterwards? It’s a massive, massive journey and we only really began it in the last year or so. We’re developing a five-year road map and this is just the beginning of our sustainable supply chain journey.”

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POWERING UP the utilities Sector

DB Results partners with businesses, to ensure they can sustainably transition from strategy to reality. Offering strategic advice and digital solutions, it leverages the latest in technology to drive successful results â&#x20AC;&#x201C; and in the utilities Energy, now more than ever, this means unlocking the value in data to manage risk and maximise asset and customer value

Written by Sarah Megginson Produced by Josef Smith

D B R E S U LT S

ooftop solar combined with efficient battery storage and smart energy management solutions represent just one of myriad ways that digital disruption is set to transform the utilities sector, and according to Matt Nidd, General Manager – Utilities, DB Results, there’s a real risk that companies who fail to innovate will be left behind. “Technology and regulatory change effectively means that what was always a commodity – the delivery of energy – is being further commoditised . For instance, now even the residential meter data itself is becoming a commodity, thanks to the new Power of Choice initiative,” he explains. Given all components of the Retail value chain are available as a service, the barriers to entry into this market are lower than ever making it especially vulnerable to disruption. “This leaves customers wondering: why do I need to have a relationship with an energy provider and why I can’t I buy energy with my phone plan? For electricity retailers, this means it’s essential that you

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Matt Nidd General Manager, Utilities

Matt is responsible for running consulting operations, growing the utility advisory capability, strengthening quality delivery and developing new service offerings. He manages a large team of professionals to drive growth, solution design, capability, innovation, alliances, analyst relations, service delivery and operations. His team is responsible for providing mission critical services to many of Asia Pacific’s leading utility businesses. Matt has 20 years of experience in utility businesses and technologies. He is experienced in building and managing globally distributed and diverse teams, and program delivery with sound technical knowledge in the utility domain. He has indepth experience in strategic planning, driving operational efficiencies, compliance reporting, deployment of large scale projects and managing P&L. He has worked extensively with clients to help them assess, deploy and manage world class technology solutions. Matt is also a recognised speaker and panelist at national and international utility industry conferences.

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know your customers better, so you can offer better value and a range of ‘stickier’ products and services. And you can only do that by having rich data to leverage.” Deriving value from data, unsurprisingly, is where the utilities sector has its focus, and it’s where DB Results can step in as a digital integration partner, offering advisory and implementation services. 138

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With the impending commoditisation of mass market metering in Australia, DB Results is helping many key players in the industry to develop clear strategies to meet the next wave of change: Power of Choice. As the Australian electricity market continues to evolve, Power of Choice will drive a further callto-action and associated step change in churn, one of the energy

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industry’s bedrock components. “The data available from this meter is incredibly powerful… The value is clearly going to be in the data, as it allows market participants to drive meaningful insights, so they can create a better customer experience and manage energy supply more efficiently,” Nidd says. While Power of Choice will challenge utilities distributors’ traditional,

regulated funding model, it also opens up many opportunities for new market entrants and those retailers who are ready to innovate with new service lines. “Power of Choice is effectively about enabling customers to have more granular access to energy usage w w w. d b re s u l t s . c o m . a u

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“Technology effectively means that what was previously a commodity – the delivery of energy – is actually being commoditized further” – Matt Nidd, General Manager, Utilities

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information, so they can make more informed decisions and ultimately reduce consumption and manage cost. This is facilitated by enabling retailers, rather than distributors, the opportunity to offer consumers a smart meter bundle – including a way to view that data, such as an online portal presence where they can look at that data and make decisions about usage,” Nidd says.

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“Obviously, it’s beneficial to everyone to use less power and put less pressure on the grid overall, and this process starts with the data. Data is at the core of everything. Consumers can use this data to look at shifting usage and moving to ‘time of use’ offers. With access to this kind of data, retailers can overlay other energy related products and services such as energy efficient appliances, bundled

ENERGY

solar and storage and even insurance to create a deeper relationship”. As an industry thought leader, DB Results aims to leverage its utilities experience in this challenging marketplace, to help energy providers develop options for a Power of Choice response strategy. It’s already a very competitive marketplace and according to Nidd, it’s about to become even more

crowded – and much more disrupted. It’s those utilities providers who are ready to innovate and who embrace a more flexible business model that will survive and thrive in the long term, he adds. “Being an energy retailer is becoming less of a specialised field and now with this detailed data stream available, I think the large amount of

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ENERGY

infrastructure around traditional retailers are doing really interesting retailers will become a less things, like allowing consumers to sustainable business model,” he says. pre-buy energy. There are energy “Adding to that, we’ve still got over clubs, where you pay a $20 per month 20 percent customer churn in Victoria membership and in exchange, you and we’re likely to see churn in New get access to wholesale rates. There South Wales ratchet up with Power are other models that we’re seeing out of Choice, as it creates a new call where people are being incentivised to to action. Customers are not use less energy to get discounts sticky in this sector. At the on other goods and same time the cost to services,” Nidd says. acquire and the cost “Being able to to service are going manage such a up, while the profits diverse and valueare going down. It’s driven range of only going to get products, more Number of more competitive.” easily, with richer data Employees at The immediate and via a digital portal, DB Results solution to this is means that the traditional for retailers to become model will change materially.” savvier with their offering. In order to meet the complex and Those who think outside of the ever-changing needs of their client box to deliver bundled energy, base, DB Results works with a select gas and solar products, or who group of key partners which Nidd offer more services overall, stand describes as “key to our strategy”. to benefit most, as the traditional “One is a platform as a service retail tariff model will only appeal named OutSystems – it’s a powerful “as a very low value product”. a rapid application development “Some of the more innovative platform that really underpins

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“The large amount of infrastructure around traditional retailers will become a less sustainable business model” – Matt Nidd, General Manager, Utilities

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ENERGY

our digital play,” he says. “Our customers have for years been working with large transactional systems and they all want and need to respond to the customer experience by having a digital presence, and we saw this as a great solution.” The white labelled SelfServe.Cloud product leverages OutSystems to offer a best in class response for retailers wanting to offer integrated customers self-serve and energy efficiency capability without the overheads of being coupled to traditional customer care and billing solutions. The second is Bit Stew Systems, creators of the market-leading platform for Software Defined Operations for the Industrial Internet, which sets out to improve utility operations and asset performance in the fields of smart metering and smart grid operations. “For our customers, who are wanting to leverage the large volumes of data in their transactional systems for better asset and customer outcomes, Bitstew has demonstrated a superior data integration and

visualisation capability. This is especially so for utilities. Coupled with our services partner OSI and their deep data integration and analytics background we are particularly excited about the future of this offering” Nidd says. Where we are helping our customers with an end-to-end approach to remediating or developing complex meter and communications solutions our partner Operational Technology Solutions (OTS) have enabled us to have the market leading engineering capability required to be successful in this space. This has been particularly evident in OTS’s ability to remediate a complex point-to-point metering communications solution whilst simultaneously overlaying a contingent solution and trialling market leading data acquisition capabilities across both technologies. We are confident that the ecosystem we have developed with these partners positions us well to support our customers to change their businesses sustainably, now and in the future.

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Sustainable approach Leveraging a winning combination that has sustainability and technology at its core, Complete Office Supplies (COS) continues to dominate in its field. As Australiaâ&#x20AC;&#x2122;s largest family-owned office supplies business, boasting a turnover in excess of $120 million annually, its continuing growth and success boils down to one key philosophy: superior customer service rules all

Writ ten by Sarah Megginson Produced by Erika Kracer

COS

“An overriding consideration for us as a fam understanding that we are in this game for t so decisions need to be made with a long te

OS offers an all-in-one solution for all office consumables, from paper and toner to coffee and bathroom products, for corporate and government agencies. Founded 40 years ago by Dominique Lyone, an Egyptian immigrant whose family fled to Australia after the 1967 Six Day War, its humble beginnings saw the business established first as a local office stationery business in Western Sydney. Back then,

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the top selling item was typewriter ribbon. “Today, we sell more hand towels than toner,” laughs Belinda Lyone, General Manager Strategic Sourcing and Marketing at COS. Product range Hand towels are one of the company’s more unusual product lines within the office supplies space, alongside toilet paper, technology, coffee and just last year, fresh milk. Belinda says they are always tuning in to their

Key People

mily is the the long term, erm view point” customers’ needs in an attempt to deliver them convenient solutions, which is why COS added dairy produce to its extensive range of 21,000-plus products. “Traditionally, office product companies didn’t sell coffee or toilet paper, but we have learnt that we do have to keep an absolutely open mind. We’re working on new categories at the moment and the under-lining thinking is always: what is the office buying and is there any reason they couldn’t

Dominique Lyone Founder & CEO Born in Egypt and emigrated to Australia at the age of 13. Dominique is the Founder and CEO of Complete Office Supplies. COS offers an all in one solution for all office consumables to corporate and government agencies. Major product groups are paper, toner, stationery, canteen, janitorial, furniture and printing. The company employs approximately 350 staff throughout Australia in 9 Distribution Centres and sales offices. Current revenue exceeds $120 million per annum. Dominique was the runner up candidate in his category competing in the 2011 Ernst & Young Entrepreneur of the Year Award. More recently, he was a finalist in the 2014 Ethnic Business Awards. Married to Mara Lyone, they live in the beautiful suburb of Hunters Hill on Sydney Harbour together with their 12 year old son Casimir. Dominique also has 2 daughters; Belinda (37) and Amie (35). Both are married and hold Executive Positions in the family business. Dominique’s personal prime interests include family, succession, boating, fishing and golf.

S U P P LY C H A I N

350

Number of Employees at

COS

be buying it from us?” Belinda explains. “Last financial year we identified that our customers were buying fresh milk every week. Initially we thought, is it something we could source competitively, so that it would make sense for the customer to get it in one delivery and on one bill?” Evidently, it was. Milk sales are shaping up strongly and have proven to deliver convenience to key customers and diversification to the business. Being a family business, sustainability is always at the forefront of the way they operate, Belinda explains. “An overriding consideration for us as a family is the understanding that we are in this game for the long term, so decisions need to be made with a long term view point,” she explains. “To this end, we have a policy to ensure that no single customer is worth more than five percent of our business, and that is about preventing a knockout punch. We don’t ever want to be in a position where if we lost a customer, we’re at risk of losing the entire business. That wasn’t always the case – we have had times where one customer could have been worth 30 percent – but going forward, this strategy serves our sustainability goals.”

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JACOBS DOUWE EGBERTS Australia has built a strong reputation by delivering consistently high standards through our product quality and service. With coffee as our core focus, we provide a total solution offer. JDE is a leading global coffee player, but we’re very much in touch with the needs of the Australian market. We understand Australia’s coffee appreciation as we roast locally and cater to Australian preferences – continuing to serve the ‘daily joys of life’ with a coffee for every cup. In the world of B2B, there are different needs for different types of businesses. At JDE Australia, we take this into consideration as we continually innovate and deliver results for our business partners. Our main objectives when working with our business partners are to help them provide their customers with what we call ‘e ree S’s’ – Solutions, Savings and Sustainability. We achieve this through our industry expertise, tailored machine options and extensive range of products. Our brands are well known, loved, respected and continue to grow in popularity year aer year.

Delivering a solution for every cup

COS

Family business Together with her sister Amie Lyone, Head of Operations, and the rest of the six-person executive team, COS works globally to find strategic suppliers, with an aim of selling products that help make people more productive or more

“We do place a lot of emphasis on performance and we can’t perform if our suppliers don’t perform. If they have a strong technology platform across how they manage their inventory, that does help us to deliver a better service”

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healthy in the modern office. Dominique Lyone remains very hands-on as CEO and while Belinda looks after sourcing and marketing, Amie manages operations, including warehousing and distribution functions, as well as their customer support centre.“I’m responsible for the service level our customers experience and that means it’s up to me to make sure we deliver in full, on time, and that any touch point they have with the business is a positive one,” Amie says. One of the keys to COS’s success over 40 years in the industry has been its willingness to continually innovate and put the customer first, Amie explains. The introduction of technology to the product range is a prime example of this – as is its customer service team, which includes a call centre and a live chat team. As a family operation that was established in an era when customer service meant face-toface visits, Amie says delivering

S U People P P LY C H A I N Key

impeccable service remains at their core of the business. Customer service “Within our service centre today, live chat is the latest way our customers interact. That’s growing significantly in popularity. We still have customers who call and email, and occasionally we still hear a fax come through. But the majority of our conversations are happening via our website, where consumers are utilising live chat,” Amie says. “That team sits in our customer experience division and they are trained as our product experts, which means our customers are getting live interaction with a person. They know who they’re speaking to any one time. We even have a photo of the person on the screen, so they can see they’re talking to a real person.” This adds a personal touch to their ecommerce platform, which Belinda is proud to confirm is cutting edge.

Amie Lyone Executive Leader, Operations Amie is a driven second generation executive of Complete Office Supplies. Amie began her career in professional services where she quickly discovered her passion for people and process. After five years Amie stepped into the rapidly growing family business in 2004, at that point approximately 150 full time employees, with the brief to bring discipline into the people management. 11 years on with COS at 350 employees Amie’s remit has evolved to be responsible for all the operations team nationally including COS 9 distribution centres and own driver network.

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Key People

When building the digital service offering, it was “no longer about what are our competitors doing globally,” she shares, “but more a conversation about what is happening in ecommerce generally”. “Online shopping has exploded and ecommerce in the B2B environment was behind. We looked for inspiration by trying to see what are other big, successful retailers doing online, so we could make sure the customer experience of buying online at a personal level is translated into buying office supplies.” The team then took it one step further to consider the B2B aspect of ensuring reporting, approvals, progress management and business features were offered, without sacrificing the customer experience. Supplier sustainability With a large and diverse government and corporate customer base, COS takes its

Belinda Lyone General Manager, Strategic Sourcing & Marketing Belinda is a passionate second generation executive of Complete Office Supplies. Growing up exposed to the ups and downs of a private business, Belinda developed her passion early for marketing and business, completing her Bachelor degree in Economics and Masters in Marketing. Prior to joining the family business in 2003 Belinda began her career in reward marketing before spending six years responsible for marketing international spirit and liqueur brands. Over the past eleven years working in the family business Belinda has been responsible for the procurement and marketing functioning, instrumental in supporting the businesses ongoing success and growth, riding the e-commerce phenomenon, delivering the most loved website www.cos.net.au. Belinda was recently named Next Generation Achiever of the Year in the 2016 Family Business Australia (FBA) Awards.

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responsibility to deliver on its promises very seriously, and this extends all the way through the supply chain. “When we’re managing suppliers and the product coming in, the main thing for us is transparency. We need to know when it is arriving so we can ensure that when we make a promise to the customer, we can deliver it,” Belinda says. “We do place a lot of emphasis on performance and we can’t perform if our suppliers don’t perform. If they have a strong technology platform across how they manage their inventory, that does help us to deliver a better service.” Promoting transparency and maintaining an ethical supply chain is also “really important to us” she adds. “As a family, we’re conscious of our impact on the planet and we keep that as a core focus. We have an ethical sourcing policy and we’re pretty clear with our expectations surrounding child

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labour and the use of natural resources,” Belinda says. “Any supplier we choose to consider does have to review and acknowledge where they do and don’t comply with our policy. From a global point of view, we’re literally visiting the factories in China on a regular basis and if I see something that sets off a red flag, I’m not afraid to move on to another supplier who is more aligned with us.” It’s clear that a sustainable approach flows through every part of the business. The Lyone Foundation With family values at its core, COS established the Lyone Foundation as an initiative to support Australian people. A generous 15 percent of all profits pour into the foundation, which means that when a customer chooses COS, “they know that 15 percent of the money we make from the order is going to charity”, Amie says. In one of its recent projects, the company supported an

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COS

indigenous childcare centre in far north Queensland. “One of the challenges for indigenous children is arriving at school with literacy and numeracy skills. We were able to help fund a centre where children under the age of five can go for free, with their guardian

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Million COS annual revenue

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and an indigenous elder on site, to provide a fun place where they have access to pre-school learning to get ready for ‘big’ school.” Staff are invited to join the charity selection committee if they wish to be involved, and both Amie and Belinda sit on the board of

the Foundation, which primarily supports Australian causes. “We’re a success story of immigration; our dad came here from Egypt in the 60s, didn’t speak a word of English, didn’t finish school,” Amie says. “If it weren’t for charity when he arrived, we wouldn’t

have survived, as he lived off food stamps and they helped him find a house. It was really important to our dad to give back to the country that gave him his start.”

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