EUROPE EDITION NOVEMBER 20 19 europe.businesschief.com
Accelerating automation in the supply chain
REDUCING THE UK’S CARBON FOOTPRINT
Sylvie Noel, Chief Procurement Officer, breaks down Covéa’s drive to digitise procurement Busiest airports in Europe
City Focus
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FOREWORD
W
elcome to the November issue
company PayByPhone, and how
of Business Chief Europe!
it is working to reduce the country’s
This month’s cover piece features an exclusive interview with Sylvie
carbon footprint. Other features include interviews
Noel, Chief Procurement Officer of
with major companies, such as:
Covéa Insurance Group, who dis-
SAS Automotive Systems, innogy
cusses the professionalisation of
SE, Saudi Telecom Company,
procurement by creating a digital
Nigerian Bottling Company and
platform: “The digitisation of pro-
Hudson Resources. Business Chief
curement enables easy work cover in
also ranks the top 10 busiest air-
the event of sickness, but also the
ports across Europe, as well as
platform is wholly compliant. It also
taking a closer look at the city of
provides a new perspective to pro-
Dublin, which is emerging as a leading
curement,” she says.
technology hub.
Business Chief also sits down with
Do you have a story to share?
Abhy Maharaj, Global Chief Com-
Please don’t hesitate to get in touch
mercial Officer & Chief Operating
and you could be featured in our
Officer, NewCold, who discusses
next issue.
how essential automation has become to his firm’s operations. This month’s lead feature hears from Jonny Combe, who explains the sustainability strategy of UK
Enjoy the read! Amber amber.donovan-stevens @bizclikmedia.com e u r o p e . b u s i n e s s c h i e f. c o m
03
EUROPE EDITION
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CONTENTS
10
30 40 The cloud playbook
50
THE YEAR OF THE CUSTOMER
MANAGING OPERATIONAL RISK IS KEY TO IMPROVING SUSTAINABILITY
City Focus
DUBLIN
68 78
60
AIRPORTS IN EUROPE
CONTENTS
94 NewCold
120 innogy SE
Hudson Resources
152
138 Saudi Telecom Company
Nigerian Bottling Company
170 SAS Automotive Systems
188
10
Covéa: Working better. Together. WRITTEN BY
AMBER DONOVAN-STEVENS PRODUCED BY
CHARLOTTE CLARKE
NOVEMBER 2019
11
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COVÉA INSURANCE GROUP
Sylvie Noel, Chief Procurement Officer, Covéa Insurance Group, details the company’s drive for transparency amidst its digital transformation in order to truly professionalise procurement 12
C
ovéa Insurance has built an excellent reputation over the last 20 years for its customer service and products. The
insurance company was formed by the merger of three brands: Garantie Mutuelle des Fonctionnaires (GMF), Mutuelle d’assurance des artisans de France (MAAF) and Mutuelle du Mans Assurance (MMA). Today, the company holds a number of awards, including Personal Lines Claims Excellence of the Year 2019 (Insurance Times Claims Excellence Awards); and Best Use of Customer Service Technology 2019 (Modern Insurance Customer Service Excellence Awards) among others.
NOVEMBER 2019
13
e uro pe .busi ne ssc hief. com
COVÉA GROUP
As the company has grown, so has the need for a more seamless procurement process. “I initially came to the company to assist with the professionalisation of procurement at Covéa,” says Sylvie Noel, Chief Procurement Officer. “I created a proposal on how to improve procurement, called EMA: ensemble pour mieux acheter, which means ‘together to work better.’” Noel has been with Covéa for almost nine years, starting out as a consultant, before taking the role of CPO, which was created for her in July 2012.
14
“In 2012 Covéa had over 12 members of staff specialised in procurement, working across different levels within our three brands and in our French subsidiary on procurement, internal procurement and IT.” Noel’s
“The unification of procurement through this platform enables us to speak with one voice” — Sylvie Noel, Chief Procurement Officer, Covéa Group NOVEMBER 2019
CLICK TO WATCH : ‘COVÉA EN BREF’ 15 responsibility was to streamline this
on segmentation, building common
into a connected, standardised net-
language and legal. “Having worked
work with added value. She achieved
across different parts of the company,
this by digitising the entire process.
we realised that we could make the process more sustainable, and so we
DIGITISING PROCUREMENT
took to the market to search for an
“The process is now really slick. The
appropriate tool that would help us
digitalisation of procurement ena-
achieve our goals of transparency and
bles easy work cover in the event
added value,” recalls Noel. She then
of sickness, but also the platform is
began conversing with over 60 stake-
wholly compliant. It provides a new
holders about their views and fears
perspective to procurement.” Noel
regarding procurement, and began to
and her team created the procure-
build the platform from there.
ment function from scratch. Initially, she had worked across the process,
The platform was initially rolled out in 2013 to internal stakeholders and e uro pe .busi ne ssc hief. com
Wonderful customer ex come from digital rein Experience the Capgemini Effect www.Capgemini.com
xperiences nvention Discover now
COVÉA GROUP
“We were proactive with our stakeholders and responded to their suggestions, which were present in the version of the platform that we later rolled out” — Sylvie Noel, Chief Procurement Officer, Covéa Group
18
NOVEMBER 2019
procurement before rollout to wider users. According to Noel, there were naturally some challenges during the 2013 rollout, which have since been overcome following the platform expansion. “We started with the procurement request, the workflow associated and a first wave of model of contracts. What we’re doing now is very different: we start with the budgets imported to the platform; any procurement request needs to have a budget line. Then, it either goes to the creation of a tender, or into catalogs.”
E XE CU T I VE PRO FI LE
Sylvie Noel, Chief Procurement Officer Sylvie Noel is the Chief Procurement Officer at Covéa and has been with the insurance company for nine years. She started with the company in 2010 as a Principal Consultant, working across process and legal, before moving to becoming Chief Procurement Officer in 2012. In this role she is in charge of heading up the program EMA (Ensemble pour Mieux Acheter) which is an initiative designed to professionalise procurement.
e uro pe .busi ne ssc hief. com
19
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21
Noel goes on to explain that if a tender is chosen, a group comprising all the required individuals — including procurement and legal — forms in order to process the tender’s dispatch to suppliers via the platform. “All the exchanges with parties occur solely within the platform, so we all have a very good view of the activity and it’s impossible now for anyone to be out of the loop,” she says. “We were proactive with our stakeholders and responded
“The process is now really slick. The digitisation of procurement enables easy work cover in the event of sickness, but also the platform is wholly compliant. It also provides a new perspective to procurement” — Sylvie Noel, Chief Procurement Officer, Covéa Group
to their suggestions, which were e uro pe .busi ne ssc hief. com
COVEA deploys SAP S/4 HANA as part of its financial transformation plan. To achieve its objective of aligning financial processes for all its subsidiaries, the COVEA group relies on SAP S/4 HANA.
COVEA is composed of the three mutuals MAAF, MMA and GMF, leaders in property insurance and responsibility in France. The key figures for 2017 are: - 26,000 employees: 21,000 in France and 5,000 abroad - Nearly 2,700 points of sale - In France, 11.5 million members and customers - Premiums earned (France & International): €16.3 billion - Combined net income (group share): €818m - Equity: €14.7 billion The financial function at the heart of the strategic plan COVEA’s strategy is to mutualize the central and backoffice functions while keeping the customer relationship with their different markets to the brands. In this context, the COMEX of the COVEA group decided, in July 2018, to align the financial processes of the various subsidiaries and to respond to the obsolescence of the existing accounting tools. In September 2018, COVEA launched a consultation for its “Convergence Finance” program. The project’s roadmap aims to achieve the following objectives. First objective is to improve the efficiency of business and operational processes between its three brands. This requires the definition of a common language for the entire group, as well as the harmonization of financial processes and reporting, the reduction of low valueadded activities and the automation of repetitive tasks. The second objective is to simplify and rationalize the information system in order to reduce the operational risk of multiple systems and their obsolescence. In addition to optimizing the standardization of tools, COVEA also needs to define a norm of integration, build a transactional data source for the entire group in order to facilitate future transformations. The construction of this new platform will ensure that changes in regulatory requirements are met more quickly and at a lower cost. Last but not least, to make economic management more reliable and faster. The transformations generated by technology are leading to profound changes in insurance. The ability to manage the Group more consistently will bring efficiency, responsiveness and strategic agility to COVEA.
SAP wins for its state-of-the-art financial solutions To choose the solution and the service provider, the bidding is organized in two phases: choice of the tool, and choice of the integrator. The selection process has been conducted by the COVEA group between September 2018 and March 2019. After a pre-selection of several solutions, COVEA opted for SAP. On the one hand, the publisher already had references in insurance; and on the other hand, the technologies on which the SAP solution is based (“in memory” technology) opens up the world of possibilities in terms of reporting and data exploitation. The core of the selected solution will be based on the SAP HANA database combined with the S/4 HANA ERP (Finance modules). This will be complemented, for budget management, by SAP Analytics Cloud Planning. Finally, SAP Profitabilty and Performance Management will manage the cost management. The choice of deploying on the private Cloud of SAP has been made to benefit from more flexible technical platforms, and from the latest innovations of the software publisher more quickly. A progressive deployment The project was therefore launched in early July 2019. The design phase of the target model is expected to be completed by mid-2020. In parallel, a prototyping environment will allow to share with users to make the new processes and tool more concrete. These workshops promote a customization closer to user needs, as well as the sharing of a common vocabulary for all brands. The development and configuration phase will be carried out by Accenture. A first integration and testing phase has been planned for 2021, and the first wave of operational deployment of the project is scheduled for January 1, 2022. Ultimately, 500 users will be involved in this project.
Learn More
CLICK TO WATCH : ‘COVÉA CÉLÈBRE LES 200 ANS D’ASSURANCES MUTUELLES DE FRANCE’ 23 present in the version of the plarform
eliminated through the creation of the
that we later rolled out.”
platform. It is also important to lead by
From a change management perspective, this digitisation has been largely welcomed, as it has created
example with confidence and reassurance,” she says. In addition to this, big data is an
clarity and ease of access to vital
integral component to the quality that
information at Covéa. But this may
Covéa strives for: “We are also still try-
not always be the case and Noel
ing to ensure that all who are involved
asserts the need to listen to employee
with the procurement process are
concerns and to work through them.
aware of the importance of big data.
“This is why we built the program in
We are constantly evaluating the qual-
response to our stakeholders: not only
ity of the overall process and upscaling
to show them that this is a serious pro-
it often to meet expectations.” Noel
gression, but to ensure that any of their
shares that the company that
fears regarding the industry could be
assisted in the implementation of this e uro pe .busi ne ssc hief. com
25
1999
Year founded
transformation was Ivalua, which has been “the core skeleton to the process at Covéa,” and assisted in the streamlining of the function. The digitisation
$1bn
of procurement has had many benefits. “The unification of procurement through
Approximate revenue
this platform enables us to speak with
2,500
and improved relations with our stake-
Approximate number of employees
one voice,” Noel says, adding that “this allows for a greater market presence holders and vendors.” Not only has the process added value and been well received by e uro pe .busi ne ssc hief. com
COVÉA GROUP
Bring your Change Management to the next level to make your transformation a success! InsideBoard is the first AI platform for change management dedicated to encourage user adoption, ongoing team performance and transformation success.
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27 employees and stakeholders alike,
will continue to be aligned with the
but it has had excellent benefits in
business strategy of the group.”
terms of sustainability: “In terms of our
She is confident that both customers
vision for sustainability, we are almost
and employees will continue to see
paperless and it’s compliant with reg-
a growing level of transparency that
ulation and auditable. Sustainability
will bring the business and stakehold-
isn’t underlined as much as it should
ers closer, while consolidating the
be,” Noel asserts.
valuable role that procurement plays within the company.
A TRANSPARENT FUTURE “As Covéa moves forward, customers will be at the center of all we do, and this is evident in our huge project transformation with added value and productivity,” she adds. “Procurement e uro pe .busi ne ssc hief. com
LEADERSHIP
30
NOVEMBER 2019
THE UNIQUE BUSINESS MODEL THAT IS DRIVING THE UK TO A GREENER FUTURE Jonny Combe, UK CEO of cashless parking payment provider PayByPhone, talks about his Meters for Trees Initiative, Europe expansion and the simplification of travel. WRITTEN BY
AMBER DONOVAN-STEVENS
e uro pe .busi ne ssc hief. com
31
LEADERSHIP
P
ayByPhone is pioneering sustainability initiatives in the UK.
With its cashless payments and
seamless customer interface, the parking
app’s unique business strategy positions it as a key player in the emergence of the UK as a smart city hub. Business Chief caught up with CEO of cashless parking payment provider PayByPhone UK, Jonny Combe, to discuss the recent launch of its new initiative, Meters for Trees. 32
A SUSTAINABLE BUSINESS MODEL The Scotland-born CEO is a self-confessed “car fanatic.” His passion led to a career in the automotive sector, working across a variety of departments such as marketing, sales, operations, strategy, and manufacturing at BMW Group. Combe made the transition from BMW to UK CEO of PayByPhone in 2018, tasked with driving expansion across the UK. His approach has been both conscientious and bold as he leads the company towards achieving this goal, all while maintaining the company’s green ethos.
NOVEMBER 2019
33
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LEADERSHIP
In June 2019, Combe officially
34
via apps such as PayByPhone. “These
launched the Meters for Trees initiative,
machines do more environmental
a unique programme designed to
damage than most would realise. They
reduce the UK’s carbon footprint.
require regular maintenance, whether
“Meters for Trees works with local
this is an employee driving to empty the
authorities and private operators as
machines, or even repairs due to theft
clients in order to reduce the amount
or vandalism in the area. This is why we
of CO2 produced,” he says, adding
encourage local authorities to reduce
that “to do this they are assisting with
them.” The Meters for Trees initiative
the reduction of parking machines.”
pledges that for every 10 machines
Combe acknowledges the vast
reduced by local authorities,
reduction of these machines over
PayByPhone will offset one tonne
the last decade though and that
of carbon through the port of the
individuals now pay for parking
Portel-Pará REDD project, a Verified
“ For every tonne that we offset, we also donate a tree to the local authority” — Jonny Combe, CEO, PayByPhone UK
NOVEMBER 2019
Carbon Standard (VCS) audited initiative project in the Amazon Rainforest. “For every tonne that we offset, we also donate a tree to the local authority. For example, in the case of Kensington and Chelsea council, where we launched the programme, they had 700 machines that they wanted to remove. So that’s 70 tonnes of carbon that we offset and as a kind of nod to that, we’ll donate 70
parking solution, with Ealing council,
trees to the borough.” Combe says that
taking the scratch-card method digital
from this, it was calculated that over
in order to streamline the user’s
23,000 miles were driven just to empty
parking experience. In addition to
these machines alone. Not only is this
local authorities, Combe notes that
reducing the borough’s carbon footprint,
PayByPhone also works closely with a
but it’s also creating cost savings in
number of parking operators, including
excess of £120,000 a year
the largest and best known, NCP.
that would have otherwise been lost
PayByPhone has already picked
to theft. Earlier in the year the company
up two Green World Environment
also launched a visitor vouchers
Awards; one for carbon
E XE CU T I VE PRO FI LE
Jonny Combe Combe is the UK of global mobile parking payment provider PayByPhone UK. In November 2018, he was brought in from BMW Group, where he spent 13 years, to lead PayByPhone through a phase of rapid expansion. The company is growing quickly under his leadership, with sustainability remaining at the heart of all of that the company does.
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35
LEADERSHIP
ABOUT PAY BY P H O N E Global mobile parking payment provider PayByPhone, a whollyowned subsidiary of Volkswagen Financial Services, is one of the fastest growing mobile parking payment companies in the world.
36
It enables cashless parking payments in 500 cities across 12 countries through smartphone and smartwatch applications as well as its website, helping 29.1 mn registered users pay for parking easily and securely without the hassle of waiting in line, carrying change or risking costly fines. Today, PayByPhone is quickly establishing itself as a market leader in the UK thanks to aggressive growth initiatives, acquisitions and a surge of contract wins. Its transactions in the UK grew from 23 million to 28.3 million between 2017 and 2018, and employee numbers have doubled over the past year, currently employing 29 people, with the aim to employ 35 by the end of 2019.
NOVEMBER 2019
reduction and the other for work with local authorities, and a Green Apple Environment Award. “We’ve also been short-listed for four or five more awards and I’m optimistic that we will pick a couple more up.” He adds: “We’re the largest in the industry for what we do and we truly believe in leading by example.” Before launching the initiative, PayByPhone ensured it had itself achieved carbon neutral status. “C-level executives need to lead by example,” explains Combe. “As you can tell, we are pretty passionate about the green agenda and how technology can forward that.”
A GREENER UK As Combe looks to the future, he shares that there are several advancements in the works. “One of the main metrics of our business is the number of transactions that we process and this year we will have done close to 50% more than last year.” Combe hopes that this number will continue to increase. Earlier in the year, PayByPhone acquired Connect Cashless Parking, a company located
“ We’re the largest in the industry for what we do and we truly believe in leading by example” — Jonny Combe, CEO, PayByPhone UK 37 Financial Services didn’t just acquire PayByPhone for parking, it’s the fact that parking is a key component in Liverpool. “We’re certainly open-
of how our consumers’ journey fits
minded to any further acquisitions that
together. So, I think in the future we’ll
will help us achieve our business
be able to bring lots of different types
strategy.” He says that PayByPhone
of journeys under one umbrella and
is a global brand moving to strengthen
pay for them in a really easy and
its presence in Europe. “I want to take
simple way.”
over Scotland with this initiative,” he jokes. “We have a small presence in the country currently and I’m really passionate about expanding there.” As the company evolves, Combe believes that PayByPhone will go beyond parking solutions. “Volkswagen e uro pe .busi ne ssc hief. com
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TECHNOLOGY
THE CLOUD 40
PLAYBOOK Bas Lemmens, VP EMEA at software company Pivotal, on the factors to consider when planning a cloud migration strategy WRITTEN BY
BAS LEMMENS
NOVEMBER 2019
41
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TECHNOLOGY
T
he execution of a cloud migration strategy can be an anxious time for business leaders. Not only are the core aspects of moving to
the cloud often shrouded in technical jargon (public vs private; hybrid vs multi; containerisation; XaaS; etc.), but also, the diversity and complexity of IT infrastructure varies widely from business to business,
42
making the risk of disruption difficult to determine. Imagine a business’ IT infrastructure as a bus speeding along the motorway. The vehicle must transport assets and information according to a strict schedule, otherwise mission critical processes are subject to disruption, resulting in the loss of precious time and money. In this analogy, an attempt to execute a cloud migration strategy is akin to climbing under the bonnet, swapping out the old engine and fitting a new one, all while the bus is still travelling at speed. Much to the relief of business leaders, the process of cloud migration is far too incremental to be comparable to a Hollywood-style stunt. In fact, a more useful analogy is to think about moving to the cloud as something much more relaxing: chess.
NOVEMBER 2019
43
“CLOUD-NATIVE APPS RUN BETTER, FASTER AND MORE RELIABLY THAN THOSE HOSTED IN ON-PREMISES DATA CENTERS” — Bas Lemmens, VP EMEA, Pivotal
e uro pe .busi ne ssc hief. com
TECHNOLOGY
RE-IMAGINING CLOUD MIGRATION IN BLACK AND WHITE
piece forward has the potential to
Modern businesses run on a number of
while creating a set model for success
different apps, each with a specific set
is rendered almost impossible by billions
of services or processes that enable
of different potential arrangements.
different aspects of business to func-
44
increase the vulnerability of others,
What does this have to do with the
tion. Like pieces on a chess board,
cloud? Put simply, cloud-native apps
these components achieve their pur-
run better, faster and more reliably than
pose by operating in a variety of differ-
those hosted in on-premises data cent-
ent ways to achieve a common goal.
ers. Moreover, the distributed nature of
The way in which these components
cloud computing makes it more difficult
are configured can impact how effec-
for apps to be targeted by cyber-attacks,
tive they are in achieving their goals,
while the flexibility it affords organisations
creating a delicate network of interde-
means that cybersecurity protocols can
pendencies that is not always obvious
be rapidly adapted to the shifting cyber
from an initial assessment. Moving one
threat landscape. Most importantly,
“RUNNING APPS IN THE CLOUD ALLOWS BUSINESSES TO BECOME MORE AGILE – A CRUCIAL CHARACTERISTIC TO HAVE IN A RAPIDLY CHANGING WORLD” — Bas Lemmens, VP EMEA, Pivotal NOVEMBER 2019
CLICK TO WATCH : ‘HOW PIVOTAL HELPS YOU BECOME A MODERN SOFTWARE COMPANY’ 45
however, running apps in the cloud
BRING IN THE CAVALRY
allows businesses to become more
The external perspective of a third-
agile – a crucial characteristic to have in
party organisation is especially useful
a rapidly changing world. Apps run in
during migration projects. This will help
the cloud benefit from both increased
to overcome the tendency for cloud
portability and scalability, which helps
migration projects to suffer from tunnel
businesses adapt their products and
vision and offer an expert opinion to
services to changing levels of demand,
assist difficult decisions. For example,
or to more closely align with customer
an organisation may have modernised
needs. This is how value can be gener-
its enterprise application structure to
ated as a direct result of migrating apps
run in the cloud, launched new micros-
to the cloud, while also saving costs by
ervices and started adhering to a new
only using as much of the IT depart-
architectural style, but neglected to
ment’s resources as needed at the time.
retire its legacy infrastructure. Such e uro pe .busi ne ssc hief. com
TECHNOLOGY
ground and end up wasting money and
ONE SMALL STEP FOR IT, ONE GIANT LEAP FOR BUSINESS
slowing down systems – despite effec-
A game of chess is lost when all the
tively being redundant in cloud-based IT
most important pieces are brought
environments. Instead of hiding, these
to the frontline simultaneously.
blind spots can be easily identified and
Accordingly, nowhere does it say that a
safely eliminated by granting visibility
business must shift all of its apps to the
to an unbiased third party to rigorously
cloud in a single move. Even with just
check the assumptions initially made.
a small portion of apps running in the
problems can easily fade into the back-
The surging popularity of cloud-native
46
cloud – often only 10-20% of a total
enterprise applications has also chal-
estate – businesses will notice the ben-
lenged conventional wisdom on how
efits of the cloud begin to manifest in
to keep systems safe and secure. From
areas such as value-added services,
infrastructure to application development,
enhanced customer experience and a
there is a sharp contrast between legacy
greater capacity to innovate.
cybersecurity tools and a more modern, cloud-native approach to protecting IT resources. Organisations must reimagine their cyber defences to adapt to the needs of the cloud-native era. As a result, organisations moving to the cloud must be bold and invest in the innovations, patterns and practices in order to be successful, such as establishing a DevOps culture, engage in the continuous delivery of new apps and updates and adopt a microservices architecture. These are the tools that are needed for cloud-native security the way in which major risks can be mitigated. NOVEMBER 2019
It is paramount that businesses
businesses can embark on a journey of
planning a cloud migration strategy
learning and adapting to a new cloud-
focus first on moving the apps that are
based environment, and ensure that
best positioned to reap the benefits of
cloud migration projects are successful.
the cloud. Which apps deliver the most value to customers? Which apps are
MAINTAINING ENGAGEMENT
the most important in ensuring the
The usefulness of technology partners
people within the business can achieve
does not stop at the technology itself.
their goals? Which apps drive the most
Perhaps, one of the most important
traffic? Identifying which apps are core
aspects of cloud migration projects is
to the business and moving them to
to maintain stakeholder engagement
the cloud, it can be assured that the
throughout the process. Technology
maximum outcomes of the technology
partners can be instrumental in
are being achieved with minimal
espousing the benefits of technical
change. By taking incremental steps,
projects to members of the executive
“THE BEST MIGRATIONS HAPPEN WHEN INDIVIDUAL TEAMS WORK TOGETHER, FROM DEVOPS TO IT” — Bas Lemmens, VP EMEA, Pivotal
e uro pe .busi ne ssc hief. com
47
TECHNOLOGY
board, such as tangible ROI and new opportunities to compete, scale and grow. It’s important that it’s not just the customers that go on and benefit from this journey. Teams within the organisation must understand the technology and concepts being deployed and be shown the value of having existing systems changed. As with any major cultural change, resistance is to be expected, especially when executed in parallel with a large technology project such as a 48
cloud migration. Making sure teams are on board with change is foundational to success, and establishing processes for introducing them to new solutions and software is crucial. The best migrations happen when individual teams work together, from DevOps to IT. Again, this is where an incremental approach is fundamental, as each step leads to new insights which require continuous course correction and adaptation. The often technical way in which cloud is described means that the crucial human factor of cloud migration is forgotten. A people-centric approach must be taken, one which rigorously NOVEMBER 2019
questions any assumptions regarding individual teams’ reactions to the change involved. Only then can a project become successful.
WINNING THE GAME No one ever won a game of chess without sacrificing pieces along the way. Equally, no cloud migration project is flawless. Even with the best tools and people at their disposal, organisations will find themselves making certain trade-offs and facing unexpected circumstances. Moving to the cloud, however, isn’t a leap of faith; it’s an incremental and strategic reconfiguration of IT resources that requires evaluation every step of the way. The outcome? An IT offering that is fit for purpose, futureproof and capable of serving the needs of both clients and employees alike.
e uro pe .busi ne ssc h ief. com
49
PEOPLE
50
THE YEAR OF THE CUSTOMER In every industry, the need for companies to provide their customers with seamless digital experiences is growing more and more pressing, and those unwilling to adapt to a new class of consumer run the risk of being left behind WRITTEN BY
NOVEMBER 2019
HARRY MENEAR
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PEOPLE
A
cross every industry in every market, one thing has become clear in 2019: this is the year of the customer.
Ubiquitous advertising, economic discomfort in a shrinking middle class, more ways than ever for people to self-determine the companies they deal with, a hunger for on-demand and personalised products and services, and a younger consumer class grown increasingly distrustful of an unfair capitalist system, are all conspiring to firmly put the ball back in
the court of corporations when it comes to 52
attracting and retaining a customer base. Back in 2018, James Paine, the Founder of West Realty Advisors wrote, in a piece for Inc, that “twenty years ago, if you paid for a product or service and you weren’t happy with what you received, the best you could hope for was that if you sent in a letter of complaint, you’d eventually receive a refund. You could tell a couple of friends and maybe they’d tell their friends, but that was about it. Nowadays, though, if a customer has a bad experience then they can post about it online, and if they post about it online then it can go viral and even seriously damage the overall value of your brand. After all, all it took was one tweet from Kylie Jenner to knock US$1.3bn off Snapchat’s valuation.” NOVEMBER 2019
“ People expect improvements at a pretty fast clip these days” — Victoria Holt, CEO, Protolabs
53
The message from consumers is clear: “treat us right or perish.” This month, we explore explores the strategies being adopted by companies that want not simply to survive this age of seamless consumer experience, but to thrive in it. Victoria Holt, CEO of digital manufacturer Protolabs, agrees that customer expectations in her industry have changed over the past decade. “People expect improvements at a pretty fast clip these days. So, being able to very quickly design, prototype e uro pe .busi ne ssc hief. com
PEOPLE
54 and launch products is a critical suc-
transform to offer products that are
cess factor for manufacturers today,”
more personalised and readily availa-
she explains, adding that “there’s more
ble, and in return, this drives customer
mass-customisation too, which is
expectations and the standards are
another thing that not only requires
becoming more exacting every year as
rapid innovation, but the capacity to
the customers take more and more
produce products in lower quantities
control.
as you customise them for specific end
“For the last 50 years, software
uses. Again, this lends itself to a more
development has been specification-
digitalised manufacturing process.”
centric. Teams created software that
This emphasis on harnessing the
complied with a specification. That just
power of digital transformation is part
doesn’t work anymore,” says Antony
and parcel with the ouroboric relation-
Edwards, Chief Operating Officer of
ship between the company and
artificial intelligence, analytics and
customer. Companies digitally
software solutions company, Eggplant.
NOVEMBER 2019
CORTEX Social media is the most visible, immediate and effective medium
Small, Boston-based AI startup Cortex touches
through which companies can interact
more lives on a daily
with their customers. These three
basis than most major
startups are using AI to revolutionise the customer experience online.
advertising firms. Founded in 2015, the company owns and operates a
“ Software teams need to use customer analytics to become user-centric and create software that delights users and drives business outcomes” — Antony Edwards, Chief Operating Officer, Eggplant
proprietary AI platform that reportedly eliminates the need for a dedicated social media data analyst. “Cortex learns what makes better marketing content and offers creative direction, social media insights, and competitive benchmarking based on this data analysis.” Trusted by diverse global brands like Heineken (achieving a 39% increase in engagement with the beverage giant’s Dos Equis property) and band
“Software teams need to use customer
Maroon 5, Cortex uses its algo-
analytics to become user-centric and
rithmic analysis of social trends
create software that delights users
to “know exactly what to post,
and drives business outcomes.”
when, how often, and instantly
Edwards’ observations are backed by
add the most effective photo
a recent white paper from Adobe.
or video. No more guessing,
Noting that the most successful mod-
no more searching. Done in no
ern companies are the ones that have
time at all.” e uro pe .busi ne ssc hief. com
55
PEOPLE
digitally transformed themselves, Adobe warns that “transformation needs to be driven with a purpose. For top businesses, that purpose is customer experience”. Companies that place customer experience at the top of their list of priorities are more successful than those who adopt a ‘push’ mentality. But what do those customers want? High level concepts like “customisability” and “on-demand” are a good start, but to better understand the specific 56
things consumers want from them, successful companies are doubling down on analytics and diverting more and more resources, both to under-
purchases. They then feed this auto-
standing their consumers and to
matically back into their software
providing a seamless experience. “Fast
development to optimise revenue.”
food stores are employing user analyt-
Across the board, industry leaders are
ics to understand how their staff are
moving as one towards a more
using point-of-sale terminals and then
informed company-customer relation-
using this information to update the
ship. In Gartner’s recent Customer
point-of-sale terminal so that custom-
Experience Trends Survey, it was
ers are served faster,” says Edwards.
revealed that, in 2018, two-thirds of
“Retailers are using a combination of
companies increased their customer
user and technical analytics to under-
experience technology investments,
stand how technical factors such as
with 52% reporting that they intended
website speed and design factors such
to increase spending further in 2019. In
as high-resolution graphics, impact
last year’s survey, Gartner found that
NOVEMBER 2019
DRIFT Another Bostonian firm, Drift was founded in 2014 and has since become the world’s leading conversational marketing and sales platform that helps businesses connect with their customers. With a focus on immediate revenue generation for its clients, Drift has undeniably displayed the trend with regard to its own development. After just two years on the market, the company has become one of the fastest growing SaaS companies of all-time and was named to the Forbes Cloud 100, LinkedIn 81% of companies expect customer
Top 50 Startups, Entrepreneur’s
experience to be the most important
Top Company Cultures, Boston
competition metric by 2020.
Business Journal’s Best Places to
Seeking to perfect the customer experience is going to become an even greater point of differentiation for com-
Work, and SaaS Company of the Year by the NEVCA. “Using Drift chatbots you can
panies in the next few years. Social
answer common questions in real
media is a valuable tool for companies
time, route qualified leads to the
to understand, sell to and interact with
right sales reps and start conver-
their customer bases, but the sword
sations with prospects in real time.
swings both ways. Debacles like Fyre
Rep in a meeting? No problem,
Festival and Kylie Jenner’s Snapchat
leads can book a time that works
Tweet prove that brands have nowhere
for them and your rep in seconds
to hide anymore; the customer
flat,” according to the company. e uro pe .busi ne ssc hief. com
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PEOPLE
INVOCA Founded in 2008, Santa Barbara-based analytics firm Invoca has spent over a decade selling the idea of relationship insights as direct value creation. The company is centered around its AI-powered call tracking and analytics platform that helps marketers get campaign attribution and actionable data from inbound phone calls. The approach is a less common one, given the focus of most social media solutions on internet engagements over social media apps. However, with the US outbound telemarketing market predicted to reach higher than $12bn annually by 2025, the application of AI to gain greater 58
insight into the space has its appeal. In an interview in 2017, Invoca CEO Gregg Johnson said: “With the massive rise of mobile, which is driving 85 bn calls to businesses globally and influencing more than $1 trn in US consumer spending, it’s becoming even more important for marketers to integrate call intelligence with their marketing automation solutions. As consumers increasingly combine their digital interactions with voice interactions, live conversation has become the new competitive battleground for customer experience. Call intelligence allows marketers to connect digital consumer interactions (clicking on paid search ads, browsing websites, etc.) to the voice experience (talking to a human), to have a holistic profile of the customer.� NOVEMBER 2019
experience must be seamless, curated and on-demand. Companies that want to succeed in what may become the Decade of the Customer need expert help – a fact that means the global Customer Experience Analytics Market is expected to grow to around $12bn by 2023 – and to embrace the power of digital. Vinod Muthukrishnan, co-founder and CEO of customer experience management software company CloudCherry, lives this reality every day. “Customer retention is lower than it ever has been. The millennial audience is actually much more conscious of business ethics, the
IN 2018, TWO-THIRDS OF COMPANIES INCREASED THEIR CUSTOMER EXPERIENCE TECHNOLOGY INVESTMENTS THE GLOBAL CUSTOMER EXPERIENCE ANALYTICS MARKET IS EXPECTED TO GROW TO AROUND $12BN BY 2023
environment and corporate social responsibility than the two generations before it, mine included,” he explains. When asked about the key to a great customer experience, Muthukrishnan says: “We’re going back to the basics. In many ways, the more digitisation we do, the more humanisation the customer demands. You can use machine learning, you can use bots – you do whatever, as long as it’s aimed at actually giving that customer a more personal experience.”
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S U S TA I N A B I L I T Y
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NOVEMBER 2019
MANAGING OPERATIONAL RISK IS KEY TO IMPROVING SUSTAINABILITY Bill Zuurbier, co-founder and Managing Director of risk management consultancy, Equib, discusses the importance of resilience within new structures and the need for clear communication when addressing sustainability
WRITTEN BY
BILL ZUURBIER e uro pe .busi ne ssc hief. com
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S U S TA I N A B I L I T Y
62
T
here is an increasing focus on
in the construction sector and other
incorporating resilience into new
industries to prioritise sustainability.
structures, as well as updating
In setting this new target to reduce
existing infrastructure. However,
carbon emissions, the UK is the first
addressing sustainability requires vision
G7 nation to align with the Paris 2015
and clear communication to ensure it
agreement, but others already have
gets the attention it deserves prior to
plans to follow.
and during delivery.
To assist those responsible for the
Increased public awareness of the
design and development of new
impact of climate change and the UK
buildings and infrastructure, the
Government’s recent decision to set
sustainability assessment methodology
a legally-binding target to reduce
– BREEAM – has been rolled out to
greenhouse gas emissions to net zero
more than 70 countries around the
by 2050, are driving decision-makers
world. Used to measure and certify
NOVEMBER 2019
“At any stage of delivery, if whole-life costs are not properly considered, the risks associated with the project can increase dramatically� — Bill Zuurbier, Co-founder and Managing Director of risk management consultancy, Equib 63
the environmental performance of
environmental or societal benefits.
new and existing buildings, those with
As a result, those responsible for
a rating of Excellent or Outstanding are
designing new projects are specifying
deemed to be sustainable environments
sustainable materials and operational
that meet a high standard in terms of
equipment, usually justified by
their environmental, social and corporate
whole-life cost considerations, which
governance (ESG) performance.
prove their efficiency over time.
Certification schemes and bench-
Operational risks are among the
marks clearly have an important role
biggest risk factors for any major-scale
to play in driving sustainability perfor-
infrastructure programme or construc-
mance. Their use is certainly helping
tion project and successful mitigation
to attract investors and other stake-
starts at design stage, when sustain-
holders, who increasingly expect
ability is closely considered. At this
projects to deliver measurable
stage, a complete cost plan for the e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
“Building in sustainability and forward planning at design stage can help to make projects more attractive to private sector investors and public sector sponsors� — Bill Zuurbier, Co-founder and Managing Director of risk management consultancy, Equib 64 project is prepared, incorporating both capital costs, which are associated with the build itself and operational costs, spanning the expected life of the structure. If capital expenditure is low at design stage, but operational costs, such as those incurred when using or maintaining the asset, seem excessive, there is an opportunity to address this by specifying a more sustainable solution. Once building work gets underway, costs can start to increase and if not properly controlled, some of the sustainability benefits of the structure NOVEMBER 2019
65 could be eroded. From the project
make projects more attractive to
manager’s perspective, if budgets are
private sector investors and public
not being met, there could be pressure
sector sponsors. For this reason, many
to cut corners and decisions might be
designers are focused on reducing
taken to swap sustainable equipment,
both embodied and operational carbon
which comes with a higher price tag,
emissions. This typically involves the
for cheaper, less eco-friendly alterna-
specification of energy-efficient
tives. While this could help to reduce
lighting or microgeneration technolo-
capital expenditure, the longer-term
gies, such as solar panels or wind
impact of such decisions on the life-cycle
turbines. Such equipment may increase
performance of the building could
capital expenditure but has the potential
be considerable, particularly if the
to drastically reduce operational costs
replacement costs more to maintain.
over time, making the building more
Building in sustainability and forward
efficient from a cost and environmental
planning at design stage can help to
perspective. Increasingly, designers e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
are being challenged to future-proof structures to ensure their sustainability by allowing changes to extend their functionality or capacity further down the line, in lieu of significant refurbishment or rebuilding. At any stage of delivery, if whole-life costs are not properly considered, the risks associated with the project can increase dramatically. An example of this can be seen in the award-winning Queen Elizabeth Olympic Park, which became home to West Ham 66
Football Club in 2016. Forward-thinking designers and their sponsors were keen to develop a multi-storey asset which could bring diverse benefits to the local area for many years to come. Their decision to incorporate dual
“Keeping an eye on operational risks at all stages of delivery is vital to ensure that construction projects deliver on their sustainability promises� — Bill Zuurbier, Co-founder and Managing Director of risk management consultancy, Equib NOVEMBER 2019
it is important that stakeholders at a senior level encourage adherence to the right processes and controls from the start. Once a project is underway, decisions made onsite must be communicated to all stakeholders and endorsed where necessary. As projects can often take many years to complete, these processes and controls must also be robust enough to stick even when there are significant changes of personnel or multiple specialist teams are involved. Wider application of BIM or Building Information Modelling, which involves the creation of a detailed digital description of every aspect of a building or project, can also help to improve data management and visibility across the life of the project. The ability to integrate 3D models with time and cost data means functionality by allowing the structure
risks can be identified more readily and
to double as an athletics track was
used to inform decision making.
inspired, but the operational costs
Keeping an eye on operational risks
attached to switching from one use
at all stages of delivery is vital to ensure
to the other have since become a bone
that construction projects deliver
of contention.
on their sustainability promises.
To assist in de-risking construction projects and infrastructure programmes and delivering sustainability benefits, e uro pe .busi ne ssc hief. com
67
CITY FOCUS | DUBLIN
City Focus
DUB
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NOVEMBER 2019
BLIN
69
We explore Dublin, a city rapidly becoming known as the ‘tech capital of Europe’ thanks to its hosting the likes of Google and Microsoft WRITTEN BY
OLLIE MULKERRINS
e uro pe .busi ne ssc hief. com
CITY FOCUS | DUBLIN
N
estled in a bay along the east coast of Ireland, Dublin rests at the mouth
of the River Liffey. The city is divided by the river between North and South and bordered by an area of the Wicklow mountain range,
aptly named the Dublin Mountains. The earliest record of a settlement in the area where the city stands today comes from 140AD, in which a town named Eblana was mentioned in the writings of Ptolemy. Dublin has grown 70
significantly since then and celebrated its ‘official’ millennium in 1988. In 2016, the population of Dublin’s urban area was recorded as 1.17 mn. The natural beauty of the area, including the Great Sugar Loaf mountain and the Greystones bay, along with the bustling nature of the city have inspired some of the greatest poets to have ever put pen to paper, including Oscar Wilde and William Butler Yeats. In recent years, Ireland’s economic policies have helped the city develop into a promising prospect for financial investment and as a foothold for businesses wishing to trade within the European Union. During the mid-1990’s to late-2000’s a swell of direct foreign investment saw Dublin’s economy experience a rapid NOVEMBER 2019
71
expansion, which became known
“ Ireland’s economic policies have helped the city develop into a promising prospect for financial investment”
as the Celtic Tiger period. Although the property-led economic crash in 2008 certainly had a dampening effect on this expansion, the city’s economic resilience led a quick recovery from the global downturn.
ECONOMY Throughout the 1980s, Ireland was considered a poor country by Western standards with many citizens living below the poverty e uro pe .busi ne ssc hief. com
CITY FOCUS | DUBLIN
“ Hosting so many high-tech developers has earned Dublin the moniker ‘Tech Capital of Europe’”
line employment and inflation were in constant decline. Between 1995 and 2000, the economy expanded by an estimated average of 9.4% and beyond that continued at a growth of 6.7%. This unprecedented rapid expansion of the Celtic Tiger has been noted as a rare example of a western country achieving such a marked improvement, matching the growth of East Asian nations, most notably the Four Asian Tigers: Hong Kong, Singapore, South Korea and Taiwan. The recession had a considerable
72
impact on the wellbeing of Dublin’s economy. Its GDP contracted 14% by
NOVEMBER 2019
CLICK TO WATCH : ‘BEHIND THE GATES OF THE GUINNESS BREWERY’ 73
2011; a statistic mirrored by unem-
at the St James’s Gate Brewery for
ployment rates which rose to 14% by
the foreseeable future. Economic
2011. Dublin recovered quickly, with
growth during the 90’s invited
the growth rate making a return to
pharmaceutical companies and IT
6.7% by 2015.
developers to the region, which now plays host to giants like Microsoft,
INDUSTRY
Google, Amazon, eBay, Facebook
Many of Dublin’s traditional indus-
and Twitter. Google is the largest
tries, such as textile manufacturing,
private sector employer in the region
brewing and distilling, have experi-
with more than 6,000 employees.
enced a decline in the past few years.
hosting so many high-tech developers
That being said, Guinness’ famous
has earned Dublin the moniker “Tech
9000-year lease, running since 1759,
Capital of Europe”.
is sure to see production continue e uro pe .busi ne ssc hief. com
CITY FOCUS | DUBLIN
WHY START A BUSINESS IN IRELAND?
becoming a hub for innovation
Dublin has built a reputation as a
through world class companies
welcoming place for new businesses.
and research in sectors such as
Its wealth of startup funding, such
ICT, life sciences, gaming, financial
as Enterprise Ireland makes it an
services and the food industry. This
easy stepping stone for companies
offers companies access to an
looking to get a foothold in Europe.
experienced and talented workforce,
The low levels of bureaucracy and
which is the youngest in Europe
low tax environment also ensure that
according to localenterprise.ie.
prospective startups are not experi-
Ireland is also one of the most con-
encing unnecessary set-backs during
nected countries in the world, given
the early days of trading.
its geographical location,
This environment has led to Dublin 74
NOVEMBER 2019
ease of transport to Europe, US,
Middle East, combined with its membership to the EU euro currency provides a gateway into the richest markets available. Its corporation tax is very low too at 12.5%, almost half
1.17mn Approximate population
the OECD average of 24.9%. Through targeted funding and legislation, Ireland has put itself at the forefront of the European corporate landscape by offering a welcoming and acces-
6.7%
Revenue growth
sible place for business and Dublin has become a focal point for global progress in a wealth of sectors.
Google Largest private sector employer
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CITY FOCUS | DUBLIN
DCC Founded as Development Capital Corporation in 1976, originally a venture capital company catering to start ups, it changed direction during the 1980’s and moved into industrial holdings and became DCC in 1994. It has made significant investments in the oil and gas sector with £88.5mn invested in Liquified Petroleum Gas (LPG) during 2012, DCC followed this with an agreement with ExxonMobil to acquire 76
the Esso Express petrol station network. Its net income currently sits at £266.9mn and in December 2015 was one of 100 companies listed with the highest market capitalisation on the London Stock Exchange.
SMURFIT KAPPA Established in Dublin as a box maker in 1934, they were acquired by Mr Jefferson Smurfit in 1938, trading as Jefferson Smurfit. In 1974, they acquired a partial share of Time Industries, a Chicago-based paper and packaging company. In 1998 the company merged with Stone Container Corporation to become NOVEMBER 2019
“ Its geographical location, ease of transport to Europe, US, Middle East, combined with its membership to the EU and Euro currency provides a gateway into the richest markets available”
Smurfit-Stone Container Corporation. In 2005, after a management buyout funded by Madison Dearborn Partners, the company merged with Kappa packaging to become Smurfit Kappa in 2005. It has a net income of £564.3mn, employing 45,000 people across its business network.
GOOGLE DOCKS CAMPUS The tech giant has built new offices in Sandford, expanding on its presence in Dublin. The four-building campus in the heart of the docklands district has become the hub for employees from 65 countries speaking 45 languages and working in marketing, finance and engineering. The campus has been dubbed Google Docks after the popular browser-based document hosting platform and its position within the city. Sustainability is a key part of the organisation and the unit is looking to achieve its LEED accreditation in the near future.
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T O P 10
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NOVEMBER 2019
Airports in Europe We take a look at Flights From’s “Top 100 Busiest Airports” to bring you the top 10 airports in Europe, based on scheduled daily flights WRITTEN BY
SHANNON LEWIS
e uro pe .busi ne ssc hief. com
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T O P 10
80
10
Leonardo da Vinci-Fiumicino Airport
Airport code FCO, Leonardo da Vinci-Fiumicino Airport is located in Rome, Italy. The 48th busiest airport in the world, it has 401 flights scheduled every day. Opened in 1960 as a support airport for the Summer Olympics, it has since become a hub of passenger activity with 40.9mn passengers passing through in 2017, according to Roma Airport. It has four passenger terminals, with free wi-fi and a personal shopper service.
NOVEMBER 2019
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09
Josep Tarradellas Barcelona-El Prat Airport
The 33rd busiest airport in the world, Josep Taradellas Barcelona-El Prat Airport sees 467 daily flights scheduled. Situated in Barcelona, Spain, it has seen record passenger growth rates, from 11.7mn passengers in 1995 to 50mn in 2018. Its management prides itself on the success of its terminal T1. Built in 2009 and it has already garnered the airport multiple awards including the coveted ACPETUR prize for the best contribution to quality in tourism.
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83
08
Istanbul Airport
Located in the Arnavutkรถy district on the European side of Istanbul, Turkey, Istanbul Airport is the 29th busiest airport in the world. A hub for travel between Europe, Asia, and Africa, it sees 481 flights scheduled every day. With a self-reported 243 shops, 309 destinations, and amenities such as baby care rooms, it has ample facilities to service the 33.5mn that have passed through it between April and September of this year.
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T O P 10
© Alex Beltyukov
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07
Sheremetyevo International Airport
Sheremetyevo International Airport, Moscow, Russia — airport code SVO — sees 483 flights scheduled every day. It is the 27th busiest airport in the world. Named after Alexander Pushkin, Sheremetyevo is equipped with a VIP lounge, 75 eating locales, almost 50 stores, and the technology to allow customers to use e-boarding passes. Its five terminals are divide into two groups: North Sector Complex and South Sector Complex.
NOVEMBER 2019
© Jean-Pierre Dalbéra
06
Adolfo Suárez Madrid-Barajas Airport
The Adolfo Suárez Madrid-Barajas Airport is located in Madrid, Spain. With 501 flights scheduled every day, it is the 22nd busiest airport in the world. It changed its name from Madrid-Barajas Airport to its current designation in 2014 in response to the death of the former Prime Minister. A hub for flights between Latin America and Europe, its facilities were used by 57mn passengers in 2017.
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T O P 10
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05
Munich Airport
Munich Airport - airport code MUC - is the 19th busiest airport in the world, with 511 flights scheduled to pass through it every day. A popular airport for its design and operation, it offers multiple tours of its facilities, and is equipped with an observation deck that allows customers to view the airport apron. Its interactive exhibition and playground make it popular among families, and its visitors’ park is open year-round.
NOVEMBER 2019
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04
Heathrow Airport
The 13th busiest airport in the world, Heathrow Airport is located on the outskirts of London, England. With 616 flights scheduled every day, its four passenger terminals experience constant use. In terms of passenger traffic, it was reported by Thrillist that 80.1mn passengers using its facilities in 2018. It has almost 80 stores throughout the airport and organises fun events throughout the year.
e uro pe .busi ne ssc hief. com
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03
Charles de Gaulle Airport
Based in Paris, France, Charles de Gaulle Airport — airport code CDG — is the 11th busiest air travel hub in the world. It sees 623 flights scheduled daily. Among its services are luggage home delivery, luggage protection and advance tickets to events in Paris, all of which can be pre-purchased online. Based on passenger volume, Charles de Gaulle is the 10th busiest airport in the world, with 72.2mn passengers passing through its doors in 2018, according to Thrillist.
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T O P 10
02
Frankfurt Airport
The 10th busiest airport in the world, Frankfurt
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Airport sees 625 flights pass through it every day. Located in Frankfurt, Germany, its website hosts an Oktoberfest-themed 2048 number game that puts up terminal shopping coupons as prizes. Throughout its terminals it provides leisure zones, with comfortable chairs, hardwood floors and multiple plug sockets. According to Thrillist, 69.5mn people used its facilities in 2018, making it the 14th busiest airport in the world by passenger volume.
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01
Amsterdam Airport    Schiphol
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Situated in Amsterdam, the Netherlands, Amsterdam Airport Schiphol is the eighth busiest airport in the world. It has 639 flights scheduled every day. Its services include free wi-fi, a baby care lounge, a financial centre, meeting rooms, showers and a hairdresser. Its shopping plaza provides customers with access to more than 20 bars and restaurants. According to Thrillist 71mn people travelled through it in 2018, making it the 11th busiest airport globally by passenger volume.
NOVEMBER 2019
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ACCELERATING AUTOMATION IN THE SUPPLY CHAIN WRITTEN BY
PRODUCED BY
SEAN GALEA-PACE CAITLYN COLE
NOVEMBER 2019
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NEWCOLD
96
Speaking to Supply Chain Digital in Wakefield, Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer, discusses how influential automation has become to his firm’s operations
T
he industry is changing — automation has become king. The influence of technology on how businesses operate shows
no signs of slowing down and its now become paramount that companies are agile or risk getting left behind. In the case of NewCold, the latest industry trends have been embraced and instilled into four key pillars: innovation, trust, agility and automation. NewCold is recognised as a leader in the development and operation of highly automated cold stores. The firm has a global network with eight locations in three continents and is still growing.
NOVEMBER 2019
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e uro pe .busi ne ssc hief. com
LIVING LOGISTICS
REALIZING VISIONS
TGW is your reliable partner for intralogistics solutions: We deliver complete integrated solutions for our customers, realize and service mechatronical subsystems or products adapted to the specific needs of our distributors. TGW Distributor Business is proud of the successful long-term cooperation with NewCold, which includes most areas of intralogistics.
www.tgw-group.com
CLICK TO WATCH : ‘INNOVATION AT THE HEART - ABHY MAHARAJ, NEWCOLDS GLOBAL CCO & COO’ 99 Speaking to Supply Chain Digital
the data, its value and how to build the
at the company’s Wakefield site, Abhy
logistical business around it. All of our
Maharaj, Global Chief Commercial
sites are 80-90% automated and you
Officer & Chief Operating Officer,
won’t find anything else close to that
stresses just how vital technology
all over the world.”
has become to NewCold. “At the heart
Maharaj lives and works at NewCold’s
of NewCold is technology and we
Asia Pacific headquarters in Melbourne.
always operate with the customer in
Still relatively fresh into the role having
mind. What makes us different is the
joined in July 2019, Maharaj believes
way in which we leverage technology
that NewCold’s key focus on customer-
to deliver solutions for our customers,”
centricity was an important factor on his
he explains. “Take Big Data for instance,
decision to join the firm. “When I looked
when NewCold thinks about automa-
at the model, it was breath-taking
tion or about its customers and services
because it centered around automation
— that starts with data. We understand
and getting large volumes of product e uro pe .busi ne ssc hief. com
Degrees Beyond. Founded in 1997 on the principles of sound construction, exceptional customer service, financial responsibility and personnel management, we are a structurally dynamic organization dedicated to outperforming our competition and exceeding the expectations of the cold storage industry. Most importantly, we are here to help our clients succeed. As an employee-owned company, each member of our team is empowered and vested in the success of our clients. We commit 100% to each detail, big and small. We dismiss the idea of cutting corners and we aim to provide the best for our clients in every aspect. We pledge to complete your job safely, efficiently, on-time and within budget. The partnership with Newcold and their construction team highlights our commitment to listen to our clients and tailor solutions that fit their particular needs. SubZero is your partner from concept to completion. 949 216 9506 subzeroconstructors.com
LEARN MORE
in and out,” affirms Maharaj. “I developed
I feel like it’s a great time to be joining
a strong relationship with NewCold’s
NewCold and also for us to realise our
founder, Bram Hage, who I felt was
potential beyond the three continents
a great visionary and always had the
that we’ve just entered.”
customer at heart. I truly believed it
With automation at the forefront of
was a business model that suited me
operations, NewCold leverages ware-
very well and it’s tremendously scalable
house management software (WMS)
across the world. It’s rare that a
in its automated facilities, which has
European-based business can enter
proven highly successful at the compa-
the US and Australian markets so quickly
ny’s eight facilities worldwide. The WMS,
and we’re only just scratching the surface.
developed by Davanti Warehousing,
E XE CU T I VE PRO FI LE
101
Abhy Maharaj Abhy Maharaj is the Global Chief Commercial Officer & Chief Operating Officer for NewCold. Maharaj is from New Zealand and graduated with a Bachelor of Commerce from The University of Auckland. In his previous roles Maharaj was Head of Strategy & Investor Relations for Air New Zealand, Director of Equity Markets and Strategy for Fonterra Co-operative Group and CFO for Fonterra Australia. During this time, he was responsible for a number of significant transformation initiatives ranging from establishment of new business ventures, re-engineering of customer engagement models, technology and online innovations and complex financial restructuring including leading a $13bn IPO. Maharaj also studied at Harvard Business School and is married to Ashika Maharaj. He has three children.
e uro pe .busi ne ssc hief. com
INDUSTRIAL
COOLING
SOLUTIONS Potyzestraat 42 B-8900 IEPER BELGIUM Tel.+32 57 21 86 21 www.skt.be info@skt.be
- Major refrigeration contractor to the European frozen food industry - Specialist in the design of large industrial ammonia plants - Manufacturer and installer of large modular IQF freezing tunnels - Authorised installer of Howden, Grasso & Bitzer - Up to 40 tons/hour - More than 50 years of experience - Service 24/24 - 7/7
CLICK TO WATCH : ‘CCO AND COO ABHY MAHARAJ ON THE NEWCOLD FAMILY SYSTEM’ 103
“ I feel like it’s a great time to be joining NewCold and also for us to realise our potential beyond the three continents that we’ve just entered” — Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer
delivers its own state-of-the-art product — the innovative cloud-based management system CORAX. Having been developed using the latest Microsoft technologies, the SaaS (Software as a Service) allows NewCold to control the software design to meet its requirements and fulfil the needs of its customers. Through the assessment of these customer needs, NewCold provides tailor made solutions for the specific transport requests of its customers. The company possesses a range of different solutions to execute the transport of its customers, which e uro pe .busi ne ssc hief. com
NEWCOLD
104
NOVEMBER 2019
includes a fleet of 200 own managed trucks and a diversity of partnerships which enables a full network optimisation. From operating a large-scale own transport fleet to a 3PL managed transport solution with dedicated partners, Maharaj’s customer-centric approach comes from understanding the drive behind his customers’ requirements. Despite the influx of new technology, Maharaj believes that it is vital that all incoming technology serves a purpose and enhances existing processes to ensure technology is not embraced for the sake of it. “Our sites are developed with sustainability in mind because customers want less energy use. Typically, NewCold’s sites are 50% more energy efficient than conventional cold storages,” he explains. “We make it easy for our customers to understand exactly where their products are in order to enable them to track it in real-time. Our systems are very smart so if a product arrives and is in the warehouse only for a few hours, it is placed in the most optimal position so that it can be moved in and out efficiently. There’s already quite a degree of AI already built into our software system.” e uro pe .busi ne ssc hief. com
105
HIGH-BAY WAREHOUSE FOR DEEP FREEZE INTRALOGISTICS AT ITS BEST
In Burley, Idaho, NewCold celebrated the grand opening of one of the largest frozen storage facilities of its kind. This impressive project includes a high bay warehouse with 90,000 pallet positions supplied by SSI Schaefer. Additional high bay warehouses for NewCold have been built in Tacoma, Washington, as well as Wakefield, UK and Rheine, Germany. SSI Schaefer has a longstanding partnership with NewCold. As a leading provider of modular warehouse solutions – especially rack clad storage systems, SSI Schaefer has provided several deep-freeze high bay warehouses for NewCold. The latest automated deep-freeze warehouse project is currently underway in Rennes, France. The demand for deep-freeze products continues to grow. As volumes increase, requirements placed upon deep-freeze logistics are getting more complex. SSI Schaefer offers flexible, modular, and scalable solutions that optimize storage, picking processes, and profitability within cold storage facilities. Along with complex logistics solutions, SSI Schaefer also provides rack structures as a standalone business.
ssi-schaefer.com
The long-term success of all businesses lies with the relationships that is developed with its customers. By operating with an agile approach, it allows NewCold to be lean and easily adapt its processes. “Engagement with our customers is key,” he explains. “We need to be constantly aware of the latest industry trends and the needs of our customers. For example, an increasing number of people are eating out of their homes, or using innovations like UberEats or DoorDash, so you need to consider the impact that this is having on our customer’s
“ At the heart of NewCold is technology and we always operate with the customer in mind” — Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer
businesses.” With customer demands frequently changing, Maharaj believes it’s important to keep up-to-date with the latest trends in order to retain its position as a leader in the market. “It’s all about understanding those requirements from our customers to enable us to think ahead,” says Maharaj. “Our software is not just about warehouse management; it also revolves around starting to integrate more into the customer channels. We’re in multiple markets with some of our major customers and it’s important to recognise that supply chain and logistics aren’t e uro pe .busi ne ssc hief. com
107
Building the Future
At Kingspan Insulated Panels, we are pioneering better technologies and methods of building for a low carbon world. Improving building performance, construction methods and ultimately people’s lives – that’s what drives our people across the world. Energy efficiency is at the heart of our innovation, from making the industry’s most thermally efficient core for our insulated panels, to producing the most airtight interfaces, to providing technical and fieldservice support on how to build optimally. As the world demands more from buildings in terms of energy efficiency, fire safety, weather resilience, health and aesthetics, Kingspan envelopes will take our built environment to the next era of efficiency and wellbeing.
kingspanpanels.com.au
Aesthetics
Build Ease
Energy
Fire
109
the same in every market. It’s really
Kinspan, SSI Schager, Deweerdt,
about acknowledging how we can
S-Zero. Maharaj believes the ability
apply the learning across not only one
to develop mutual trust and under-
country but multiple ones and then
standing is vital to all successful
bring that to our customers and say
partnerships that NewCold estab-
‘you could potentially improve your
lishes. “Partnerships are essential
business if you adopt these changes,’
to us. We have a co-competence that
and that’s really how we work together.”
relies heavily on our partners. At the
Highlighting the importance of devel-
core, we need to grow together and
oping strategic partnerships to help
learn from one another, so trust plays
accelerate operations, NewCold has
an important role in that,” explains
developed key partnerships with a
Maharaj. “Partnerships also help
number of companies such as; TGW
us with innovation too. If they’ve got
Group, SKT, B-Built, Ancra, Fisher CGI,
thoughts and ideas on the latest e uro pe .busi ne ssc hief. com
NEWCOLD
OUR PARTNERS NewCold values the impact its partners have on its success and collaborates with TGW Logistics Group, SKT, B-Built, Ancra, Celonis, Fisher Construction Group, CGI, Kingspan, SSI Schaefer, Masterveil/De Weerdt BVBA and Subzero Constructors. This affirms why each of these partnerships are critical to driving success at NewCold. 110
TGW Logistics Group TGW Group is NewCold’s partner for the conveyors and lifts in the cold storages, which takes care of pallet transport within the warehouse. It is a global, preferred supplier of NewCold, the two firms have worked in partnership for a considerable amount of time. www.tgw-group.com SKT SKT is NewCold’s supplier of industrial cooling solutions for the European market. SKT delivers the industrial equipment to control the freezing temperatures in the cold storages. It’s a Belgian family-owned company which NewCold has a long-term partnership with. www.skt.be NOVEMBER 2019
B-Built B-Built is a general contractor of NewCold for the European market. B-Built takes care of the actual construction of a NewCold facility. It is a family-owned, small scale company with a lot of flexibility. www.b-built.com Ancra Ancra is NewCold’s preferred partner in the innovative application of Automatic Loading and Unloading systems for warehouses and trailers. With this system, no human hands touch the food products from loading at the producer to in- and outbound at the NewCold warehouse. Ancra is a Dutch company with a global playfield. www.ancra.nl Fisher Construction Group Fisher Construction Group is a preferred general contractor of NewCold in the USA. Fisher built the NewCold facilities in Tacoma (WA) and Burley (ID). Fisher has long-term experience in the construction of cold storages which is of great value in its projects. www.fishercgi.com CGI CGI is a global IT and consultancy services provider that helps maximise the technologies that transform the business of
its customers. CGI supported NewCold in Melbourne to define KPI’s and test protocols for the start-up of a crucial functionality. Their knowledge of Business Intelligence and Testing Methodology helped NewCold to optimise its operation. www.cgi.com.au Kingspan Kingspan is NewCold’s global supplier of insulation panels; they form the external, high insulating cover of NewCold’s facilities. Its high-quality panels are always at the forefront of innovation, which is – in relation to fire safety and insulation value – a high-impact value for NewCold. www.kingspan.com
It’s a Belgian based company with a a high innovative drive and flexibility. www.masterveil-eu.com Subzero Constructors Subzero Constructors is NewCold’s supplier of industrial cooling solutions for the Northern-American market. Subzero Constructors, a US-based company, delivers the industrial equipment to control the freezing temperatures in the cold storages. www.subzeroconstructors.com
111
SSI Schaefer SSI Schaefer is NewCold’s preferred supplier of pallet racking. The racking in the high bay construction of NewCold’s facilities takes care of the huge storage capacity. SSI Schaefer is a global, solid company, originated in Germany, with which NewCold has a long-term partnership. www.ssi-schaefer.com Masterveil/De Weerdt BVBA Masterveil is the designer and supplier of NewCold’s aircurtains and dehumification systems. These systems take care of a solid closure of external openings in NewCold’s cold storage, for instance at train docks. e uro pe .busi ne ssc hief. com
CLICK TO WATCH : ‘STAYING CUSTOMER CENTRIC WITH NEWCOLDS GLOBAL CCO & COO’ 113 incoming technology, then they share
measuring risk when looking to imple-
that information and we collaborate
ment new software and processes.
together to develop new solutions for
“With any technology and innovation,
our customers or improve efficiencies.
there’s a risk attached. We tend to
I also believe that due to the pace of
develop our own systems and technol-
which NewCold is growing; execution
ogies because we’ve got existing sites
and agility is also critical. As we con-
that we can test and if it’s not working,
tinue to incorporate new customers
we also have mechanisms in place
and enter new markets, we need to
where we can quickly stop the pro-
be fully informed of the trends that
cess.” Maharaj believes in a ‘fail fast’
are out there as well as the challenges
process that if something isn’t going
that we might face.”
to work, then the process can be
With innovation recognised as one
moved into an environment that can
of NewCold’s key pillars, Maharaj
be tested more easily. “We don’t take
understands the importance of
massive risks where we will implement e uro pe .busi ne ssc hief. com
Outside door (protection)
THE SOLUTION PROVIDER FOR THE END-USER More than 30 years of experience in creating the ideal product and production environment, that is Masterveil. In the field of separating climates, air humidification and air dehumidification we deliver tailor-made solutions with a focus on the production process, the nature of the process, the product and the people in the process.
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For Masterveil creating and separating different conditions is more than just developing and installing equipment. We set ourselves up as a sparring partner and devote ourselves to achieving an integral solution. Whether it concerns cool cells, freezer cells, logistics, production or storage, Masterveil thinks along with you. Outside Doors and conditioned cells Design and entrances of shopping centres Comfort and wind control Freezer and shockfroster Advice & Commercial Project check Energy Simulations & Measurements Project Coordination Montage & Maintenance Qualitycontrol & Startprotocol
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new untested processes on a full site
our customers need to believe in and
all at once. We’ll take an approach where
be educated on the automation we
we collaborate with our customers,
have. When you look at the advance-
our people and understand what the
ments of technology, we have spent
risks are. We manage the risks and if
a considerable amount of time educating
the worst happens then we always
and making sure that people fully
have a back-up plan.” Another vital part
understand what it’s all about — there
of NewCold’s mantra is trust. Maharaj
has to be the trust there.”
believes this to be essential to NewCold’s
With an intent to reduce the impact
strategy. “Due to the way our logistics
its operations have on the environment,
and cold storage business is set up,
NewCold has begun to optimise the cold supply chain and introduce innovating concepts. Due to its facilities being tall, it allows the buildings to embrace storage technology with a high stock density. The company’s stacker cranes in the cold store operates in the dark, with
e uro pe .busi ne ssc hief. com
115
NEWCOLD
“ We have a strong philosophy around sustainability and we want to help bring a greener 116 future. There’s still more to do — we aren’t finished yet” — Abhy Maharaj, Global Chief Commercial Officer & Chief Operating Officer only LED lighting used for maintenance. This approach has enabled NewCold to use 50% less energy per pallet position in comparison with traditional cold storage facilities. “There’s a substantial focus on sustainability NOVEMBER 2019
117
e uro pe .busi ne ssc hief. com
The specialist in automatic truck (un)loading. Ancra Systems is the specialist in the field of automatic truck loading and unloading systems, from standard system to customer specific solution. Tailored to your industry and calculated based on your logistics requirements. Ancra Systems has been streamlining loading and unloading worldwide for more than twenty years.
Learn More
+31 (0)880 247 150 ancra.nl
COLD AS ICE A fast-growing specialized construction company, B-Built has extensive experience in building large-scale cold store warehouses in Western Europe. Acquired knowledge that we continuously and successfully apply in the building of new logistics facilities. LEARN MORE
+31-(0)164-271660
2012
Year founded
years and beyond. “We’ve got substantial projects already underway and our existing sites are filling up. Across Europe, most of our sites are full so
730,000 Pallet positions
1,000
Approximate number of employees
there’s extension work to be done on our sites in order for us to increase our capacity,” he explains. “We’ve already entered Australia and the US, with both our sites becoming busier, I believe there’s also possibility for new builds coming into those regions. Our immediate focus is to ensure that we bring in new business as we look to enter new markets. We’re always looking to grow and it’s a big part of
worldwide and we like to think we focus
our focus by scaling up our software
heavily on helping to bring that change
developers, operations people and
too,” affirms Maharaj. “In the early days
management team to ensure we deliver
of NewCold’s model, we dramatically
on our commitments and successful
reduced energy consumption and with
implementation of projects on-time
our customers becoming increasingly
and on-budget.”
more focused on sustainability, it has led to it becoming an important driver for us. We have a strong philosophy around sustainability and we want to help bring a greener future. There’s still more to do — we aren’t finished yet.” Looking to the future, Maharaj has a clear vision of the position he hopes NewCold to be in over the next few e uro pe .busi ne ssc hief. com
119
120
NOVEMBER 2019
121
Looking across industries for inspired innovations WRITTEN BY
OLLIE MULKERRINS
PRODUCED BY
BEN MALTBY
e uro pe .busi ne ssc hief. com
INNOGY SE
innogy is using digital innovations to speed up the green energy transition and help 23mn customers become more sustainable
I 122
nnogy is a large-scale energy provider based in Essen, Germany, currently serving 22 million clients across Europe. The com-
pany spans three major industry demographics: retail, grid infrastructure and renewable energy production. It has also started to expand into the e-mobility market with one of the largest charging point networks in Europe and a worldwide number of 34,000 charging sites. Since innogy was carved out from RWE and listed on the M-DAX separately in October 2016, the business has been driving digital transformation as a key part of its strategy. Kuldip Singh, Digital & Data Director Retail International and part of the Retail Leadership team, sat down with us to elaborate. “We want to play a leading role in the global green energy transition and we believe that digital and disruptive new technologies are going to be at the heart of speeding up this process,” explains Singh. “Digital transformation is really at the heart of our customer facing business. We’re constantly looking for ways NOVEMBER 2019
“ Keep this planet a great place to live, not only for the current generation but for many to come” — Kuldip Singh, Digital Director Retail International, Retail Leadership team
123
e uro pe .busi ne ssc hief. com
INNOGY SE
2016
Year founded
€36.9bn Approximate revenue
to optimise our end-to-end customer journeys - seeing where we can give our clients a ‘digital delight’ as I like to call it - as well as exploring new business models which are data-driven, platformbased, and highly scalable in nature.” innogy is, next to its core business of supplying electricity and gas to its customers, making services available
42,000
124
Approximate number of employees
to help customers install and maintain sustainable energy solutions such as photovoltaic (PV) panels, insulation of houses, smart home devices and e-thermostats, all with a view to “make society more sustainable.” As part of the Retail Digital Program, the focused use of digital innovations such as AI is able to grant customers a seamless and insightful journey into sustainable solutions for their home or business. “A beautiful example is the application of data analytics and artificial intelligence algorithms to make the whole journey of orientating and selecting solar panels easier for customers: Looking at whether your house is able to have solar panels on the roof as well as buying or renting them. What we have done is to bring lots of data points and sources together (through selected partners)
NOVEMBER 2019
CLICK TO WATCH : ‘HELLO, I AM INNOGY’ 125 and have thereby been able to give the
with their local heads of digital, driving
customer a complete online journey.
a joint roadmap and enabling the delivery
Several years ago, this journey could
of selected digital value pools with
have taken several months due to uncer-
great scaling opportunity across all
tainty. Now, we have narrowed that down
these markets.
to a one-click experience, completely
An important pillar of the Retail Digital
online: enter your ZIP code and house
program is the delivery of a joint Mobile
number and an algorithm calculates how
Strategy across markets, in which innogy
many panels can go on your roof, how
realises smarter and faster app develop-
productive they will be, your payback
ment, improved life-cycle management
time and investment needed including
and best practice sharing in all aspects
a rental option” says Singh.
including a joint asset library for UX and
A key driver of the Retail Digital pro-
design. “We work closely with all our mar-
gram is our Leadership Team Digital that
kets to give customers a seamless and
consists of the key six markets of innogy
consistent mobile experience within all e uro pe .busi ne ssc hief. com
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Enabling the Connected Energy Customer Through Cloud and Voice Services For more than a century, electric utilities have focused on the sale of a single commodity. The proliferation of distributed and renewable energy resources, advanced analytics and increasingly connected homes and businesses is now opening up the opportunity for utilities to think and act less like traditional providers of electricity and more like innovative retailers with an array of products and services that empower and delight customers, all while ensuring the safe and reliable delivery of power. Simply put, the pressure to deliver increasing value for utility customers is mounting and non- utility players are willing to step in as intermediaries if the incumbents fail to act. Electric utilities intent on maintaining their customer base – and revenue flows – must transform how they interact with increasingly connected energy consumers. With the proliferation of distributed solar, electric vehicles and energy storage, along with the adoption of devices such as smart speakers and Wi-Fi thermostats, utilities can leverage advanced cloud analytics to build and strengthen their customer relationships – while simultaneously working to build a more resilient digital grid. Just as Amazon makes use of consumer insights to create new, highly valued offerings for its customers, next-generation electric utilities can likewise transform themselves into digital organizations that rely on advanced cloud analytics to learn far more about their customers than they ever could before, and then tailor services to improve their customers’ lives. The convergence of digitalization and decentralization provides an opportunity for utilities to tap into the capabilities of machine learning and artificial intelligence to build upon their role as a 24/7 core service provider in people’s lives. Unlike past transformations in the utility industry, redefining the customer experience through cloud analytics can start to bear fruit in months, rather than years.
For some of the largest utilities around the world, such as Centrica, Enel and Pacific Gas & Electric, the journey to the cloud is already well underway. But there is ample opportunity for utilities of all sizes and under all regulatory frameworks. For energy providers that have not yet mapped out a transformative customer experience, now is the time to embrace an agile platform and chart a course. Making the most of the cloud requires much more than just a technology change; it requires evolving processes and transforming the business culture. Amazon Web Services (AWS) gives power and utility companies the foundation to focus on delivering the best customer experience and achieve operational and cost efficiencies while meeting demand securely and reliably; the flexibility to evolve their business model and innovate in a rapidly changing industry; and the critical business insights to transform the industry. AWS Power & Utilities solutions address the industries four core business categories and are centered around IT and OT Transformation, Workforce & Asset Management and Customer Engagement. These are underpinned by Data Insights and core cloud services consisting of database, edge technologies, AI/ ML, IoT, analytics and voice services. WATCH Innovation in Power & Utilities with AWS Digital Transformation to Drive Customer Innovation in Energy Efficiency
Learn More
INNOGY SE
“ Digital transformation is really at the heart of our business” — Kuldip Singh, Digital Director Retail International, Retail Leadership team
128
innogy brands” says Sebastian Schmelz,
reinventing the wheel when it comes to
Team Lead Digital Program.
meeting the demands of its business. A
To achieve a comprehensive view of a
successful example is AI-based online
client’s needs, innogy has worked with
experimentation to improve the sales
several partners outside energy sector
funnel for innogy products & services. By
to integrate innovative technology into
testing a multitude of changes in the dif-
its platforms and processes. Through
ferent online pages, innogy can in a short
tried and tested applications, developed
period of time increase sales conversion
in other industry sectors, innogy avoids
significantly, as proven by great impact
NOVEMBER 2019
achieved by the energiedirect.nl digital
renewables energy industry. Singh
team. This way of working (“testing and
explains: “We should not be bench-
validating customer flows at scale using
marking ourselves against what
AI based tooling”) is now being scaled
energy companies are doing, but
to other innogy markets, too.
rather look at what other industries
Through adaptation and innovation, innogy is catering to businesses and individuals looking for sustainable
that are ahead of us are doing as also the big tech companies.” Amazon Web Services (AWS) has
energy solutions. As the global industry
been able to provide intricate AI, originally
becomes more interconnected, cus-
used in its online services, to provide an
tomer expectations are founded on
efficient data farming solution. “AWS is
the achievements of disparate sectors.
a partner we are working with very
The Amazons and Googles of the world
closely to see how we can leverage
are setting those expectations and,
advanced analytics and artificial intel-
by looking at them for forward-thinking
ligence in several complex use cases
and rapid innovation, innogy is able
and, by working with them, use algo-
to stay ahead of the curve within the
rithms to be predictive,” Singh explains.
E XE CU T I VE PRO FI LE
Kuldip Singh Kuldip Singh is a digital executive with a strong grounding in digital technology adoption and digital business scaling. He has been a digital executive in CXO roles in reputed global media companies and is now leading the digital transformation at innogy in the international retail business.
e uro pe .busi ne ssc hief. com
129
Empowering those who power our world Wipro is helping Utilities across the globe move towards a sustainable energy future. Get started on your digital transformation journey today.
Click here to know more
INNOGY SE
132
NOVEMBER 2019
“ We can be more relevant, more personalised, and more real-time in our offering” — Kuldip Singh, Digital Director Retail International, Retail Leadership team
most relevance and impact for a cus-
tomer. The Essent Commercial Director Boudewijn Wildeman is working very closely with Singh’s team on this and states: “I believe we can nurture customer relationships much better with this kind
One of the very impactful use cases is
of technology that can enable us to work
centered around retail energy manage-
in an omnichannel approach. We can be
ment and demand forecasting. “By using
more relevant, more personalized, and
the Amazon Sagemaker DeepAR fore-
more real-time in our offerings, whenever
casting algorithm in a successful pilot,
that needs to be done.”
we were able to develop a clear roadmap
As part of its journey to a digital
to further improve our forecasting, which
workplace, Innogy collaborated with
is a very important aspect of energy
Infosys to introduce new multilingual
management.”, states Carsten Kleewald
capabilities, such as the chat chan-
of the Retail Energy Management team.
nel for service desk interactions and
In addition, innogy uses the AWS data
automated password reset. This set the
analytic solutions for a “Full Household
foundations for workplace digitalisation,
View” platform in the Dutch and Belgium
while also offering its employees and
markets. The platform provides the
partners the choice, convenience and
Essent business with the opportunity
control that they experience with their
to do real-time personalization using
personal technology environment.
customer profile data and actual online
In the Netherlands, Infosys not only
behavior combined with a best-offer
manages innogy’s key IT platforms to
matrix. This allows for accurately advis-
efficiently run its B2C business, but
ing on which products could have the
also helps it in building successful new e uro pe .busi ne ssc hief. com
133
NAVIGATE THE FUTURE OF ENERGY WITH INFOSYS
With over two decades of experience in managing the systems and workings of 70+ global utilities, we can help navigate you towards opportunity with AI-powered Core Agile Digital at Scale Always-on Learning The journey to digital has so many nexts. Navigate your next with Infosys.
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Digital Grid and Assets offerings enable a distributed, self-healing grid with the security capabilities to operate the Grid of the Future
Digital Customer Service offerings enable mobile first customer service strategies and cognitive chatbots to delight customers
Digital Enterprise and Workforce – Build a digital infrastructure that enables your enterprise systems to listen, learn and adapt to make better decisions with minimal intervention Digital Operations and Energy Supply – blockchain based ETRM and solutions enable efficiency of trading, and streamline statutory and customer reporting
Š 2019 Infosys Limited, Bengaluru, India.
INNOGY SE
“ We should not be benchmarking ourselves with what energy companies are doing” — Kuldip Singh, Digital Director Retail International, Retail Leadership team
136
NOVEMBER 2019
business models (e.g. implementing mixed reality for its boiler maintenance business). It is also improving the digital fluency of innogy’s internal IT teams through focused training programmes n its global learning and innovation hubs. Singh adds: “We apply digital innovations to our sustainability products & services with the clear ambition to keep this planet a great place to live and work, not only for the current generation, but for many generations to come.” The acquisition of innogy by E.ON has also given it a much wider scope to expand. “Together with E.ON, innogy is going to be even bigger; we will grow from 11 to 15 countries, in which we service 50+ mn customers with more than 70,000 employees. I believe that we are even better set up for scaling digital in the future,” says Singh. “My intention is to build upon the good things we’ve done in this retail digital transformation and, of course, learn from the great things that E.ON is doing and ensure that together one plus one becomes three.”
e uro pe .busi ne ssc hief. com
137
138
Teaching emerging technology and adaptable mindsets at the STC Academy NOVEMBER 2019
139
WRITTEN BY
HARRY MENEAR PRODUCED BY
JAMES PEPPER
e uro pe .busi ne ssc hief. com
STC ACADEMY
Dr Moudhi Aljamea, General Manager of the Digital School at STC Academy, talks innovation in education, and how she is helping to reinvent the culture of Saudi Arabia’s largest telco
T
he technology landscape is always changing. New technologies like quantum computing and 5G surge into the mar-
ketplace, while trends like cloud and IoT adoption 140
barely transition into the mainstream. As it was theorised by Charles Darwin, “it is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” In the Kingdom of Saudi Arabia, it is a time of upheaval and rapid advancement, as the nation continues its supercharged adoption of digital technologies and strategies in preparation for Vision 2030 - the central goal of which is to reduce the Kingdom’s dependence on oil and petrochemicals, diversify its economy and develop sectors like health, education, infrastructure, recreation and tourism. “This is an exciting time for us in Saudi Arabia. I think that, with the support of our company and our government, we will reach the goals we are aiming for,” enthuses Dr Moudhi Aljamea, General
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141
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STC ACADEMY
“ Because I have this mixture of technical and academic backgrounds I found the idea of working in a corporate academy very interesting”
Manager of the Digital School at the STC Academy. As General Manager of the Digital School in the STC Academy, Aljamea is at the centre of a digital operation that will have a perceptible effect on the Saudi telecommunications space for decades to come. We sat down with her to find out more about her role in reinventing the culture of the Kingdom’s largest telco. “My father was an electrical engi-
142
— Dr Moudhi Aljamea, General Manager, Digital School, STC Academy
neer, and my uncle was the person who introduced the Arabic language to computing, so I come from a very technologically-oriented family,” she
NOVEMBER 2019
CLICK TO WATCH : ‘TC – GITEX 2019’ 143 recalls. After obtaining a bachelor’s in
I have this mixture of technical and
Computer and Information Systems
academic backgrounds, I found
from King Faisal University, and
the idea of working in a corporate
following a stint running her own
academy very interesting,” she
software business, Aljamea accepted
remembers. “I think it’s a known prob-
a government scholarship to travel
lem that there’s this gap between
to London where, after completing
academia and industry. Working at
a Masters and obtained her PhD
the Academy presents the opportu-
in Computer Security from King’s
nity to do both at the same time and
College in 2016. Specialising in algo-
help fill this gap, which is exciting.”
rithm design for cyber security, she is
The role of the STC Academy as an
a certified Ethical Hacker, a veteran
education provider to the company’s
of working in academia, and became
executive staff presents Aljamea and
the first woman to join STC’s execu-
her team with an interesting set of chal-
tive team in February 2019. “Because
lenges. “They are almost all experts e uro pe .busi ne ssc hief. com
STC ACADEMY
144
in their own field,” she explains. “It’s
with STC’s partner companies. “We
not like working with a student, or in a
don’t use off the shelf programs from
university, or running a training course.
third party vendors; we always cus-
They’re executives that are taking time
tomise our programs. The customer
out of their busy days, so in order to
experience of our clients within the
engage them, they need to see some-
program is paramount, so the STC
thing worth leaving work for.”
Academy makes sure that what we
In order to create educational
are delivering is custom tailored to our
courses that engage STC execu-
executives,” Aljamea explains. “We try
tives, the STC Academy’s curriculum
to avoid traditional methods of deliv-
is focused around introducing them
ering courses, instead focusing on
to new technologies through highly
interactivity. We’re designing cyberse-
customised and immersive training
curity labs, for example, in order to run
courses developed in conjunction
simulations that allow our executives to
NOVEMBER 2019
2018
Year founded
10.8mn+
Revenue in Saudi Riyal, generated by STC
47
Number of academy employees
E XE CU T I VE PRO FI LE
Dr Moudhi Aljamea Dr. Moudhi Aljamea has a PhD in Computer Security Algorithms Design from King’s College London, Dr. Aljamea currently is the General Manger of the ICT School at STC Academy (Saudi Telcom Company). She is the first Saudi woman to occupy an executive position in the company and has vast experience in cyber and information security. Prior to joining STC, she was the president of an entrepreneurship unit and business incubator and an assistant Professor in cyber security at Imam Abdurrahman Bin Faisal University, she is considered as one of the Saudis experts in the computer security field.
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145
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147 live through the experience of a cyber attack.” Increasing cyber threat awareness and readiness in its executives is a top priority of STC and the Academy. “The more connected we become, the more we are exposed to cyber risk. The weakest link in every system is the human aspect, so, as an executive, increasing awareness of this type of threat is critical,” Aljamea says. In addition to cyber security, Aljamea explains that the Academy’s program also delivers education in the fields of data analytics and artificial intelligence (AI). “I have a vision that
“ We try to avoid traditional methods of delivering courses, instead focusing on interactivity” — Dr Moudhi Aljamea, General Manager, Digital School, STC Academy e uro pe .busi ne ssc hief. com
STC ACADEMY
148
NOVEMBER 2019
every employee at STC should have at least a basis of knowledge regarding cyber security and data analytics. It doesn’t require a technical background; it’s something that they should know about. So, one of the things we’re doing is developing our executives knowledge of data analytics,” she says. “We also focus on AI. We just launched an AI competition for our employees to encourage them to come up
149
with, develop and prototype an idea relating to AI.” Across
“ You never know what the future will bring. Maybe tomorrow we’ll be dealing with new technology that we don’t know anything about today” — Dr Moudhi Aljamea, General Manager, Digital School, STC Academy e uro pe .busi ne ssc hief. com
STC ACADEMY
150
NOVEMBER 2019
multiple digital disciplines, Aljamea and the STC Academy is constantly pushing to increase engagement in digital sectors and new technologies. Aljamea notes, however, that the rapidly changing pace of technology means that, more important to the Academy and STC as a whole than educating executives on technology applications, is helping cultivate an agile perspective and approach. “You never know what the future will bring. Maybe tomorrow we’ll be dealing with new technology that we don’t know anything about today.” As a result, while introducing its executives to new use cases for technologies such as 5G, quantum computing and AI, the deeper goal is to develop an executive team to whom adaptability is a second nature survival trait. Looking to the future, Aljamea is confident that although “what our executives are learning today might not be important tomorrow, with this agile mindset, they can easily adapt to whatever tomorrow may bring.”
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152
HUDSON RESOURCES: MINING FOR A GREENER FUTURE WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
RICHARD DEANE
NOVEMBER 2019
153
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HUDSON RESOURCES
HUDSON RESOURCES IS REALISING A UNIQUE OPPORTUNITY TO DEVELOP MULTIPLE REVENUE STREAMS FROM ITS WHITE MOUNTAIN ANORTHOSITE MINE IN GREENLAND
H
udson Resources celebrated the safe arrival of the first bulk shipment of anorthosite (calcium feldspar) from its
White Mountain (Qaqortorsuaq) Greenland mine in August this year. It’s set to be the first of many shipments taking advantage of a unique orebody 154
with a +100-year mine life. “The journey to the commencement of production of the anorthosite at White Mountain in February 2019 has taken seven years,” explains President and Director Jim Cambon. With a 50-year permit in place, we embarked on our 12-month plan to develop the mine site in 2018. The creation of the mine and associated infrastructure was a CA$45mn construction project utilising a modular approach, with 1200 tonnes of steel brought in to the remote Greenland location by barge. “That barge is now our dock at the deep-water port,” adds Vice President of Operations, Jerry Janik, who recalls the logistical challenges of commissioning the process plant during the Arctic winter. “It was -40°C when we first commissioned the site – 12 months earlier the plant was just a slab of concrete. The execution of the NOVEMBER 2019
155
2005
Year founded
40
Approximate number of employees
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HUDSON RESOURCES
156
“ IT WAS -40°C WHEN WE FIRST COMMISSIONED THE SITE – LAST YEAR THE PLANT WAS JUST A SLAB OF CONCRETE. THE EXECUTION OF THE CONSTRUCTION PHASE WAS A GREAT SUCCESS AND MET ALL OF OUR EXPECTATIONS FROM A SAFETY, COST AND SCHEDULING PERSPECTIVE” — Jerry Janik, Vice President, Operations, Hudson Resources
construction phase was a great success and met all of our expectations from a safety, cost and scheduling perspective. It’s a great reflection of the excellent team we assembled, boosted by the skilled workforce here in Greenland and the engineering led by CWA Engineers in Vancouver.” Greenland is a self-governing administrative jurisdiction of Denmark with control of its mineral rights. With no land claim issues, Hudson deals directly with the Greenlandic people and has very strong support from the local communities. Greenland is a mining friendly jurisdiction with a competitive fiscal regime that provides a sound financial basis for the future of White Mountain. The Greenland School of Minerals and Petroleum Råstofskolen is also located near White Mountain; it has toured the facility. Anorthosite, which is 30% aluminum, offers Hudson the opportunity to develop products with multiple revenue streams. Hudson’s GreenSpar is derived from the igneous mineral plagioclase, which yields the hardest feldspar with the highest refractive index, and offers a distinct advantage as a premium mineral extender for
NOVEMBER 2019
CLICK TO WATCH : ‘HUDSON RESOURCES – ANORTHOSITE PIT 360º’ 157 interior paints requiring very good
agreement with a leading fiberglass
abrasion resistance. Its use can also
producer in a market expected to be
result in a stronger finish and cost
worth $17.4bn by 2024. It can offer
savings as resin filler in clear coatings.
significant technical, financial and
The paint, coatings and polymer
environmental advantages, including:
industries are forecast to become a
energy savings in excess of 10%;
US$31.8bn industry by 2023.
reduction of melt times by up to a third;
GreenSpar can also be used as a
a lower heavy metal content; reduced
replacement for kaolin in the production
wear and tear on refractories and
of E-glass fiber most commonly used
reduced NOx, SOx and CO2 emissions.
in the reinforced polymer composite
GreenSpar also offers a source of
industry in high-end fiberglass for
alumina and could be a replacement for
wind turbines, cars and boat parts,
bauxite, without producing any of the
and sporting equipment. Hudson has
associated waste and tailings. The
already signed a 10-year off-take
global high purity alumina market was e uro pe .busi ne ssc hief. com
HUDSON RESOURCES
158
worth $1.8bn in 2015 and is expected
8km long, it’s massive, it’s homogeneous
to rise to $5.8bn by 2022. In addition to
and has very few contaminants –
this trio of established markets, Hudson
which is key for industrial mineral
has also discovered that, by adding
projects. We could deliver shipments
phosphoric acid to its anorthosite it
consistently for over 100 years with
can produce strong, heat resistant
this deposit. Even though Greenland
white cement (Anocrete).
is logistically challenged, being on
The White Mountain mine is the
tidewater offers excellent opportunities
source for all of these opportunities.
to bring anything in by ship and load out
“There are some competing minerals
to Western Europe or the US for $25
out there, potentially, but there are no
a tonne. It’s extremely cost effective.”
competing orebodies for anorthosite,”
Technology has played a big part in
reveals Janik. “White Mountain is
operations planning at White Mountain,
unique in its size, the orebody itself is
where the management team knew
NOVEMBER 2019
that the remote location would offer limited workforce resources. “The entire process plant is automated,” explains Janik, “to the point where you can run it off an iPhone or iPad. I could walk around the plant and see it fully controlled. You could actually be in a loader filling rocks into the plant feed hopper and still be able to monitor the plant and see how it’s running. We also have an internet link directly with our automation consultant in Denmark, so if we do have any issues, they’re able to log in from Denmark and help us troubleshoot online.
E XE CU T I VE PRO FI LE
Jim Cambon Jim Cambon, President & Director, Hudson Resources, has over 30 years’ international business development and project management experience in the mineral exploration, consulting and engineering industries with a focus on Arctic projects. He has held senior positions with engineering firms AMEC and Bateman. Jim was Co-Founder of Mongolian exploration company QGX Ltd., which was acquired for $300mn in 2008. Cambon served as the Honourary Consul for Mongolia for eight years, and obtained a Bachelor of Science (Geology) from the University of Western Ontario.
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SOLVING YOUR TOUGHEST OPERATING CHALLENGES. SAFELY, EFFICIENTLY & SUSTAINABLY. A global market leader providing trusted technology and services which make your mining operations more productive and profitable.
Learn more
Enduring solutions to last a mine’s life At Weir, our engineers have been solving the mining industry’s biggest operational challenges since 1871. Today we have 15,000 people in over 50 countries serving the mining sector alongside the infrastructure and oil & gas markets. We can improve the processes at your mine site with everything from slurry transportation, mine dewatering systems and classification & separation to wear lining & corrosion protection, tailings management and crushing & grinding.
Crushing & Grinding Our high capacity crushing and grinding equipment was conceived to process a wide range of applications from primary, secondary, and tertiary hard rock crushing. Weir’s Enduron equipment is tough, reliable and designed to maximise performance. Built for extra-long service life, our entire range of crushing and grinding solutions is backed by the Weir Minerals Service network operating in over 70 countries across the globe.
Conquering the mountain When Hudson Resources needed a tailored solution to meet its crushing and grinding needs at the White Mountain anorthosite mine in Greenland, Weir had the answer. Anorthosite’s dust can interfere with magnetic separation so Hudson commissioned Weir to deliver a crushing and fine grinding system using high pressure grinding rolls (HPGR). “The Enduron HPGR requires little to no water for size reduction and has 30% less power consumption versus standard crushing circuits,” explains Weir’s North American HPGR Manager Tim Lundquist. “Since Hudson is creating a dry product in a remote location both of these factors were vitally important to the success of the operation.” Hudson’s Vice President Jerry Janik was impressed: “What Weir provided was unique. It enabled us to generate sand and less dust during the second stage of crushing.” Used in mining applications for the last 30 years, HPGR reduce particles by compressing and crushing the feed between two counter rotating, parallel rollers with a small gap between them. This forces the rocks against each other and compresses the feed’s density to 80% of its solid volume, exceeding their compressive strength with equal pressure being applied to particles of all sizes.
WHY HPGR? Decrease your energy consumption by up to 30% Reduce recirculation and wear within your crushing circuits Enhance your downstream mineral liberation Reduce your maintenance requirements Substantially reduce your water consumption
With their excellent throughput capacity, low maintenance requirements and energy efficiency, high pressure grinding rolls are fast becoming a go-to for greenfield projects looking to maintain their margins despite commodity price pressures and declining ore grades. On average, 53% of a mine site’s energy consumption is attributed to crushing and grinding ores accounting for almost 10% of a site’s production costs. Where HPGR technology has replaced traditional methods of crushing and grinding customers have seen energy savings, and substantially improved mineral liberation. “Weir’s goal
is always to provide a solution and not just a product,” pledges Lundquist. “When the opportunity arises to work with a company like Hudson we take a look at the entire process as part of offering equipment. Additionally, we undergo testing to verify our solution will meet the client requirements and do not stop working until our promises have been met.” enduron@mail.weir www.global.weir
HUDSON RESOURCES
The green benefits of White Mountain are highlighted by the fact that
engaged Thor because we needed
Cambon believes it will be a zero-waste
help with ship loading,” explains
facility in the future. “We are running as
Cambon. “With our floating dock, we
lean as we can energy wise,” he says.
required a system to take material out
“We’re also looking at putting in a wind
of our warehouse, transfer it to the
turbine and solar panels in the future.
dock, and then into a ship’s hold. We
We’re even looking at tidal energy
worked with Thor to produce a simple
because we are on a fjord that has
system robust enough for the Arctic,
significant tides – there’s an opportunity
and it did an excellent job delivering
to harness that energy.”
a solution beyond the capacity of
Hudson has been able to quickly
162
component in the operation, we
what we need right now. It allows for
progress White Mountain to the
expansion – we can load a ship at
production stage with the help of some
a thousand tonnes an hour with the
key partners. “As it’s such a major
equipment Thor provided.”
CLICK TO WATCH : ‘HUDSON RESOURCES – ANORTHOSITE READY FOR FIRST SHIP’
NOVEMBER 2019
Weir was also commissioned to supply the in-plant crushers. “The ones we’re using are high pressure grinding rolls,” reveals Janik. “They’re somewhat different than what you’d normally expect. The fine dust can interfere with the magnetic separation. What Weir provides is unique, enabling us to generate sand and less dust during the second stage of crushing.” Elsewhere, Lillegaarden was employed to head up the electrical work at the plant. “I’ve been in this business for 30 years and can say it’s the cleanest, most high-quality layout I’ve ever seen,”
163
E XE CU T I VE PRO FI LE
Jerry Janik Jerry Janik, Vice President, Operations, Hudson Resources, has extensive knowledge in design, operation, management, and optimisation of industrial minerals facilities with a focus on paints and specialized mineral applications. Jerry began his industrial mineral career at the Nephton Nepheline Syenite operation in Ontario, which produces a product similar to Hudson’s GreenSpar. Janik was manager of the operation during a period of major capital expansion. Jerry holds diplomas in geology and mineral processing from Sir Sandford Fleming College School of Natural Resources in Lindsay, Ontario.
e uro pe .busi ne ssc hief. com
THANK YOU HUDSON RESOURCES FOR CHOOSING THOR AND CONGRATULATIONS ON A SUCCESSFUL PROJECT!
164
MOVE MOUNTAINS! Thor global enterprises ltd. Is a leading manufacturer of bulk material handling equipment for applications ranging from mining, recycling and aggregate to agriculture, coal, mineral and port terminals. Founded in 1969, thor global has grown significantly over the years in order to provide innovative solutions with unparalleled service and technology worldwide.
LEARN MORE
Hudson’s Lunar Research White Mountain anorthosite is being tested by space agencies as a potential lunar simulant to be used for testing lunar equipment such as rovers, and as a potential building material using Hudson’s CO2 free Anocrete concrete. Future lunar missions are planned to travel to the Lunar Highlands and the Lunar Poles where the main geological environment is anorthosite (very similar to Hudson’s anorthosite in Greenland). Lunar anorthosite was collected by the Apollo missions in the early 1970s. Hudson is collaborating with lunar scientists at the University of Tokyo, who are at the forefront of space research. The University of Tokyo developed petrological sections and
conducted tests which confirmed that Hudson’s anorthosite is very similar to the Lunar Highland material in texture, grain size and constituent minerals. Hudson and the University of Tokyo are also in discussions with regard to collaborating on research and development on concrete applications using Hudson’s CO2 free Anocrete concrete. Hudson has provided material to NASA’s Johnson Space Center for evaluation to use in its testing facilities for rover simulations. The company has also held preliminary discussions with the European Space Agency regarding utilising Hudson’s anorthosite for lunar research.
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Overall electrical contractor on the Hudson Plant Industrial plants in Greenland & Denmark · · · · · · · ·
Engineering, planning, logistics Power plant installation Grounding systems Plant power distribution Cable ways Plant machinery cabling Lighting indoor and outdoor Testing and commissioning LEARN MORE lillegaarden.dk +45 98557411 Denmark
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“ WE’VE GOT 14,000 TONNES OF PRODUCT SITTING IN A WAREHOUSE, SO WHAT WE’VE ACCOMPLISHED ON SUCH A SKINNY BUDGET IS REMARKABLE” — Jim Cambon, President and Director, Hudson Resources 167 confirms Janik. “In fact, they’re so
Savannah, so what we’ve accomplished
good we stole one of their project
on such a skinny budget with a small
managers to become our own site
team is remarkable.”
manager,” he laughs. Hudson has big plans to increase
Long-term, Cambon believes it’s important to have sustainable rare
capacity and grow the markets, as
earth supplies outside China and
Cambon believes demand will outstrip
suggests Hudson is well placed to
supply in the next 24 months. “We are
advance another of its Greenland
in discussions with a number of groups
projects with a high ratio of neodymium
about potential strategic partnerships
at Sarfartoq. “The Chinese have
going forward, which would give us
control of the market and are even
more horsepower. That’s something
investing in rare earth projects outside
we’ll look at as a way to grow the
of China to further control it. Because
company and add shareholder value,”
of the value of neodymium in creating
he says. “We’ve got 14,000 tonnes
these super magnets you need to have
of product sitting in a warehouse in
that supply outside of China. I think it’s e uro pe .busi ne ssc hief. com
HUDSON RESOURCES
GREE N B E N E F I T S AT W H I T E M O U N TA I N
• The Greenland operation is a simple quarry with a crushing and magnetic separation facility • No water or chemicals are used to process the anorthosite • Minimal impact to the local landscape
168
• Reduced CO2 by up to 15% for every tonne used by E-Glass producers • Will make paints and coatings last longer • Ability to produce alumina without toxic red mud tailings • Ability to produce CO2 free white cement
NOVEMBER 2019
just a matter of time. We keep going through these cycles where exploration ramps up, but then the Chinese lower rare earth prices. Eventually they will run out of material, or will want to use it internally, and that’s going to be a huge problem for the rest of the world. Realising sustainable, green, environmentally friendly rare earth projects is an important challenge to meet and one where we’ll look at finding the right partners to tackle.” Next year, Cambon expects White Mountain to be producing material for paint and E-glass customers, and hopefully rockwool too. “We are in detailed discussions with a fair number of potential off-take partners,” he says. “I think by 2021 we’ll be sold out. We won’t have the ability to take on new customers until we can expand; it’s a nice problem to have. By year three we’ll be looking at doubling the size of the operation. I think that’s just the reality of the demands we’re going to see for anorthosite.”
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170
EMBRACING D IN MANUFACT
NOVEMBER 2019
DIGITISATION TURING WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
MANUEL NAVARRO
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171
SAS AUTOMOTIVE SYSTEMS
With the manufacturing industry changing, Freddy Torres, Head of Corporate Operational Excellence at SAS Automotive Systems, discusses how his firm is utilising technology to advance operations
172
W
ith the manufacturing industry undergoing the fourth industrial revolution (industry 4.0), businesses worldwide are seeking
how new technology such as artificial intelligence (AI) and machine learning (ML) can be leveraged to accelerate operations. In the case of SAS Automotive Systems, Freddy Torres, Head of Corporate Operational Excellence, affirms how important digitisation has become as his company seeks to embrace new technology, particularly in its assembly process. “We’re always looking at how we can improve our assembly process and seek a solution which will enable us to increase our operational performance and find a way to create real more value in our operations,” says Torres. SAS employs approximately 4,300 people worldwide and produces around 5.2mn cockpits annually. Operating as a joint
NOVEMBER 2019
173
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SAS AUTOMOTIVE SYSTEMS
174
venture between two market lead-
increasing the robustness and capa-
ers, Continental and Faurecia, SAS
bilities of our tightening process,”
conducts operations from 21 locations
explains Torres. “Many companies
worldwide. Sound technical knowledge
collect this kind of information mainly
and strict quality standards form the
for traceability and process control. As
basis of the firm’s efficient processes
you understand more about the pro-
and reliable services.
cess by analysing its behaviour, more
As part of its digitisation journey,
effective improvement actions can be
SAS is making its first steps in taking
taken to accelerate its capability and
advantage of the actual Data Lake in
product quality which reduces opera-
order to create more value. “We deal
tional risk.” To amplify this, SAS has
with several safeties critical com-
successfully trialled three examples in
ponents so it’s important to continue
its digitisation journey so far featuring
NOVEMBER 2019
CLICK TO WATCH : ‘SAS AUTOMOTIVE SYSTEMS HD’
its paperless approach, 3D printer for
he lived for 10 years, Torres’ first role
tooling and web-applications such as
was as a research and development
“Truck Arrival” reducing waste in its
engineer in Okegawa, Japan, before
operations. “We are proud of having
moving onto work as a quality engineer
internally developed an electronic-
prior to leaving for Germany in 2011.
paper solution that adapt to our needs,”
Torres reflects on his unique begin-
he says. “This will enable us to keep
ning and believes the life experience
reducing our carbon footprint as we
acted as a springboard for where
deploy the technology in our plants.”
he is today. “That’s where I learnt my
It’s fair to say that Torres experi-
craft,” affirms Torres. “I was the only
enced a different start to his career
foreigner working at my former com-
from competitors in the field. Having
pany in one of two plants located in
begun his journey in Japan, where
Yamagata Prefecture, Japan; I really felt e uro pe .busi ne ssc hief. com
175
Top Top10 10 Strategy Strategy Execution Execution trends trends 0101 Strategic Strategicexecution execution TheThe CXO demand a platform to to enable strategy CXO demand a platform enable strategy execution to be managed with the same disciplineasas dailybusiness. business. execution to be managed with the same discipline daily
0303
0202
04 04
05 05
Dedicated Dedicated platform platform
Data security Data security and reliability and reliability
dedicatedstrategy strategy AAdedicated execution C-suite execution C-suite
Specialised consulting firms Specialised consulting firms willwill be replaced internal strategy be replaced withwith internal strategy execution teams a dedicated execution teams andand a dedicated solution to support them. solution to support them.
With risks in data reliability and With risks in data reliability and security, leaders recognise critical security, leaders recognise critical data tools deserve more data andand tools deserve more respect than Excel and SharePoint. respect than Excel and SharePoint.
A dedicated C-suite leader A dedicated C-suite leader and supporting team will and supporting team will established deliver bebe established toto deliver an organisation’s strategy. an organisation’s strategy.
0606 Facts and evidence Facts and evidence take precedent take precedent
Guaranteed delivery delivery Swift, guaranteed execution of the
Swift, guaranteed the a higher strategy will beexecution provided of through volume scope deliverables, strategy willof besmaller provided through a higher aligned to eachscope otherdeliverables, and the greater goal. volume of smaller aligned to each other and the greater goal.
Forleaders leadersto tosuccessfully successfullycascade cascade For theirstrategy strategywith withits itsinitiatives initiativesand and their respectivecomponents componentsthere therewill will be be respective callfor foraadigital digitalplatform platformto toachieve achieve aacall thison onan anorganisation-wide organisation-widescale. scale. this
07 07 digitalboardroom boardroom AAdigital monitors performance monitors performance
Digital strategy execution boardrooms will offer Digital strategy execution boardrooms will offer real-time scalable insights aross the whole real-time scalable insights aross the whole organisation, monitoring execution through organisation, monitoring execution through progress and key outcomes in KPIs. progress and key outcomes in KPIs.
With global delivery across With global delivery across thousands of individuals and their thousands of individuals and their respective teams, common facts and respective teams, common and of evidence will become thefacts bedrock evidence will become the bedrock of performance management. performance management.
08 08Guaranteed
Global Global deliveryand and delivery execution execution
09 09
Procurement Procurement focus focus
With the stakes so With thewith stakes so to the high regards successful execution high with regards to theof the strategy,execution a formal, of standardised successful the strategy execution platform strategy, a formal, standardised procurement process will emerge, strategy execution platform driven by the CXO will emerge, procurement process driven by the CXO
10 10 Insights driving Insights action driving
action
Predictive external analytics Predictive external and AI, aligned to analytics your enterprise solution, and AI, aligned to yourwill alert your organisation enterprise solution, to willfuture alert risks of your strategy’s failure. your organisation to future risks of your strategy’s failure.
Many of the world’s largest businesses still use outdated approaches when it comes to executing strategy. Simon Crowther, CEO, i-nexus and Freddy Torres, Head of Operational Excellence, SAS Automotive Systems outline how digitalising strategy execution can be used to safeguard existing processes, continuously improve and deliver results. The time-consuming task of tracking and managing goals, programs and performance using methods like Excel and PowerPoint is an outdated way of
ForSAS SASAutomotive, Automotive,clearly clearlydefined definedand and For bindingstandards standardsare arethe thebasis basisfor forcreating creating binding reliable and sustainable products which reliable and robust processes to ensure are of high quality and performance. the customer satisfaction. At the same At time, same time, that means uncovering and that means uncovering and using the using potential for improvements and also potential for improvements and constantly constantly adapting processes. adapting to new customer needs. Real-Time Project Tracking
managing strategy execution that is still widely
“Our benchmark is to utilise the most
adopted by many global organisations today.
modern methods and work at a constantly high level of quality.
With 90% of strategies failing due to poor execution
Working with i-nexus has meant that
(Kaplan & Norton), it’s no surprise that strategy
we can maintain the exceptionally
execution is an emerging priority for C-level execu-
high standards our clients expect,
tives who demand a single dedicated platform to
while growing our business.”
transform, run and improve their businesses. “For us, quality relates to every area of the company, “Traditional approaches to managing
so we place great importance on continuously im-
strategy execution don’t offer the
proving quality.” Says Freddy Torres, Head of
versatility, collaboration and security
Operational Excellence at SAS Automotive Systems.
needed to successfully deploy, manage and optimise strategy at scale”, says Simon Crowther, CEO at i-nexus. “Strategy execution software offers control, accountability and visibility in an increasingly complex world. Experience has shown us that for leaders to suc-
Before using i-nexus, Automotive Before using i-nexus, SASSAS Automotive usedused Excel Excel to manage quality. The switch to the to manage projects and improvement initiatives. i-nexus digital platform that uncovering The switch to the i-nexus means digital platform means the uncovering potential for and adapting that theimprovements potential for improvements processes now easier. Theeasier. system has also and adaptingisprocesses is now The system driven assurance that projects are aligned has also driven assurance that projects are to the corporate strategy. aligned to the corporate strategy.
cessfully cascade their strategic plan across the whole organisation, on a global scale, a digital platform is a necessity.” Simplifying the time-consuming and complex task of delivering successful strategy execution is helping i-nexus’s market-leading clients like SAS Automotive Systems, Syngenta and CRH to gain competitive advantage.
“By digitalising all of our improvement projects and our gate review process in i-nexus, we are now able to track the value and status of each project. We can analyse the actions that are having a positive impact in real-time and intervene early to optimise and adjust.”
Take the free i-nexus StratexAssess Strategy Execution Maturity Assessment at www.stratexassess.com. Contact Matthew Redwood on +447917 435232.
SAS AUTOMOTIVE SYSTEMS
178
the senior people welcomed me and
some routines in daily life known in the
the experience helped me massively,
western world as kaizen tools are an
particularly in learning the meaning of
intrinsic part of the Japanese culture.”
Genba.” Moreover, Torres stresses the
Having made the switch to his cur-
influence “kaizen” (the Japanese word
rent position at SAS in 2017, Torres
for continuously improving all business
acts as a key link between several
functions across all areas of the pro-
Corporate Functions and the plants.
duction line) is having on firms in Japan.
“We want to increase the level of
“There is a big focus on the importance
alignment and transparency in the
of kaizen across all companies in
organisation.” Serving a range of high-
Japan,” says Torres. “I realised early
profile automotive customers such as
on during my time in the country that
FCA, Daimler, Volkswagen Group and
NOVEMBER 2019
179
E XE CU T I VE PRO FI LE
Freddy Torres, Freddy Torres, M.Sc. Material Sciences Engineer and automotive professional with more than 15 years of experience in industry in areas such as R&D, Quality Management and Lean Manufacturing. After starting his career in automotive industry in Japan moved to Germany in 2011 where he has hold several Regional and Global functions in Quality and Lean Manufacturing since then.
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SAS AUTOMOTIVE SYSTEMS
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NOVEMBER 2019
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“ There is a big influence on the importance of kaizen across all companies in Japan” — Freddy Torres, Head of Corporate Operational Excellence, SAS Automotive Systems
e uro pe .busi ne ssc hief. com
SAS AUTOMOTIVE SYSTEMS
1996
Year founded
€633mn Approximate revenue
182
4,372
Approximate number of employees
Tesla, SAS delivers tailored customer service for each of its clients. Torres reflects on the role partnerships play on his firm’s operations, particularly its strategic collaboration with SK Automation. “SK Automation is becoming a key business partner that plays an important role in the establishment of our new production facilities in Europe and Asia. It has demonstrated the speed and effectiveness we need in NOVEMBER 2019
183
this kind of business,” explains Torres. “We must have a dedicated approach to each customer in order to fulfil their requirements. Take Tesla for instance, we’re learning how to build with it because it has a completely different approach to the traditional way of doing things and it’s important we adapt our services to suit each client’s different needs.” With a firm customercentric approach in mind, Torres e uro pe .busi ne ssc hief. com
SK Automation Group Automation solution provider Turn key project machine builder Assembly, test, welding, industry software Focus on battery module pack and chassis system production line 600+ Employees world wide Facility in Europe, China and USA
Customer Reference
Contact SK Germany Address : An der Bรถrse 2, 30159 Hannover, Germany
Tel : 0049 -151 4264 5273
Email : sales@sk1.net.cn
Website : www.sk1.net.cn
185
Tesla ©
stresses the importance of ensuring
necessarily mean that we need to
customers obtain the best value. “As
introduce new technologies. It can be
we are in the JIS-JIT business, our
how we operate as a business to work
processes must be 100% robust
out ways to reduce costs and provide
so innovation remains a permanent
customers with a competitive cost. We
challenge for us,” he says. “We need
want to show that we’re 100% available
to search for opportunities that will
for our customers at all times.”
enable us to go the extra mile in com-
With the future in mind, Torres affirms
parison to our competitors and ensure
the aim is to ensure SAS can continue
we always deliver the best value for
to go from strength to strength as it
our customers. Innovation doesn’t
looks to expand over the upcoming e uro pe .busi ne ssc hief. com
SAS AUTOMOTIVE SYSTEMS
186
NOVEMBER 2019
“ We want to show that we’re 100% available for our customers at all times” Volkswagon ©
— Freddy Torres, Head of Corporate Operational Excellence, SAS Automotive Systems
years. “Growth is the most important thing. Our expectation is to ensure we grow in North America and China because we believe that those countries remain our biggest chances of increasing our manufacturing footprint,” summarises Torres. “There’s also opportunities here in Europe so we must stay alert to ensure SAS can continue to grow.”
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188
Nigerian Bottling Company Driving sustainability with an increasingly digitalised supply chain WRITTEN BY
HARRY MENEAR PRODUCED BY
MANUEL NAVARRO
NOVEMBER 2019
189
e uro pe .busi ne ssc hief. com
N I G E R I A N B O T T L I N G C O M PA N Y
George Chantoumakos, Supply Chain Director at the Nigerian Bottling Company, discusses the Coca-Cola Hellenic Bottling Company subsidiary’s increasingly sustainable and digitally interconnected supply chain
A
s the world’s population continues to grow and the looming climate crisis becomes a fact of daily life, the need for
sustainable practices in global supply chains is being thrown into increasingly sharp relief. In few places is the truth of this clearer than in the food 190
and beverage market. Waste reduction, recycling and sustainable packaging alternatives are the name of the game. “I see sustainable packaging becoming the key industry goal in coming years,” says George Chantoumakos, Supply Chain Director at the Nigerian Bottling Company. Alongside increasing the sustainability of its supply chain, the Nigerian Bottling Company, is harnessing the power of digital transformation to shape its Nigerian supply chain into an efficient, interconnected operation. “Any industrial player that wants to remain relevant to the consumer needs to fully embrace a digital, interactive supply chain,” Chantoumakos explains. We sat down with him to discuss his continuing role in developing the Nigerian
NOVEMBER 2019
191
e uro pe .busi ne ssc hief. com
CLICK TO WATCH : ‘NBC YOUTH EMPOWERED 2017’ 193 Bottling Company’s interconnected,
the feeling of ownership of a family
digital and increasingly sustainable
company with the breadth, depth and
supply chain.
international scope associated with
Chantoumakos arrived in Nigeria
working for a blue chip company,”
in 2017, quickly coming to relish the
he enthuses. “The Nigerian Bottling
central role that the Nigerian Bottling
Company is the heart of Coca-Cola
Company plays in Coca-Cola Hel-
Hellenic – it’s where it all started
lenic’s global strategy. “Coca-Cola
back in 1951. It’s the group’s only
Hellenic operates in 28 countries,
African operation, which gives us a
offering opportunities to live and
unique position in the company port-
work in very different markets and
folio. Special market conditions and
societies. The company is built on
a tough operating environment are
strong values which remain the foun-
coupled with huge growth opportu-
dations of the group today. Working
nities.” The company operates eight
for Coca-Cola Hellenic combines
plants across the country, in locae uro pe .busi ne ssc hief. com
N I G E R I A N B O T T L I N G C O M PA N Y
Our Energy Working for You Nigeria´s Leading Independent Power Producer (IPP) Solar-Gas Hybrid Plant Combined Heat & Power Our Strategy is To Provide Power & Energy Solutions In A Challenging Fast Changing Environment
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CONTACT US
tions such as Lagos, Maiduguri and
growing country, India, grew by 36%.
Port Harcourt. Nigeria is a rising star
This population growth is, accord-
in Sub-Saharan Africa’s economies,
ing to Chantoumakos, a key driver of
and Chantoumakos is excited by the
the need for increasingly sustainable
role that Coca-Cola Hellenic will play
consumer goods packaging. “The
in meeting the challenges and oppor-
Polyethylene terephthalate (PET –
tunities of rapid growth.
the most common thermoplastic
From around 122.4 million at the
polymer resin of the polyester fam-
turn of the millennium, Nigeria’s popu-
ily) market has exploded, and the
lation has exploded, exceeding 202
country’s recycling infrastructure
million in 2019. It is now the seventh
and regulatory framework are still
most–populous country on the planet,
some steps behind,” Chantoumakos
growing by 62.1% in the past 20
explains. “Plastic pollution is a high
years. For context, the next–fastest
priority problem for regulatory bodies
E XE CU T I VE PRO FI LE
George Chantoumakos George obtained his MSc in Mechanical Engineering in Greece and then proceeded to the United Kingdom, Warwick University, to obtain an MSc in Business Management. He started his career in the Advisory departments of PwC and Deloitte in London, where he also obtained a Chartered Management Accounting certification. He then moved to ContourGlobal as Project Manager before joining Coca-Cola Hellenic Bottling Company in 2011, and eventually taking up a Regional Engineering role. George moved to Nigeria and NBC in 2017 as Manufacturing Director of NBC, and earlier in 2019, was appointed as Supply Chain Director. He is happily married and the proud father of two.
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N I G E R I A N B O T T L I N G C O M PA N Y
136
Brands in our diverse portfolio
1951
Year founded
3,000
Approximate number of employees 196
NOVEMBER 2019
197
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PERFECT SOLUTIONS
N I G E R I A N B O T T L I N G C O M PA N Y
DO NOT STOP US FROM CONTINUING TO WORK ON OUR IDEAS.
As a leading innovator, we have one prime characteristic: We are never satisfied. At KHS, we are thus always proud of what we have achieved – but we also immediately start to question it and think ahead. With the aim of constantly advancing and always improving – and of providing our customers with new, intelligent systems time and again. Which we then, of course, develop further. khs.com/products
khsIM5021_AZ_Markenkampagne_Podest_196x137_ICv2_2ml_englisch.indd 1
13.08.19 13:37
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TEBIOME.COM NOVEMBER 2019
EXPERT SOLUTIONS FOR DEMANDING PROJECTS
“I see sustainable packaging becoming the key industry goal in coming years”
— George Chantoumakos, Supply Chain Director, Nigerian Bottling Company
for plastic production, Chantoumakos explains that the Nigerian Bottling Company is also expanding its use of more sustainable options in the form of glass and aluminium cans. “Glass, being a fully recyclable and environmentally friendly packaging material, should be the thing that protects the Nigerian population from overwhelming plastic pollution. Glass bottles also address the market’s need for affordability,” he says. “This year, the Nigerian Bottling Company is also investing in a new, state-of-the-art canning line, and we will continue with our returnable glass bottle business.” In addition to being a driving force behind Nigeria’s food and beverage industry and embracing more sustainable packaging strategies, the Nigerian Bottling Company is
to solve. The food and beverage in-
also dedicated to contributing to the
dustry – especially multinationals that
development of quality of life in the
operate in territories where recycling
region. “Considering the fact that Ni-
is already working well – will be driv-
geria is experiencing infrastructural
ing the action plans leading to zero
challenges impacting both electric-
plastic waste.”
ity and water supply, my role comes
In addition to working towards a ze-
with a great deal of responsibility to
ro-waste plastic packaging solution
the Nigerian consumer,” Chantouma-
and creating a cyclical supply chain
kos explains. “If I had to highlight one e uro pe .busi ne ssc hief. com
199
N I G E R I A N B O T T L I N G C O M PA N Y
200
“Plastic pollution is a high priority problem for regulatory bodies to solve” — George Chantoumakos, Supply Chain Director, Nigerian Bottling Company
accomplishment since arriving at the Nigerian Bottling Company, I would emphasise the construction projects we did in Kano State, Nigeria, providing fresh water via two new tube wells to the Kano State Water Board, and from there providing potable water for up to one million inhabitants of the state. We also established a free NOVEMBER 2019
201
e uro pe .busi ne ssc hief. com
LEVENTIS MOTORS FLEET SOLUTIONS SERVICES We provide haulage and transportation services worldwide
www.leventismotors.com.ng
2 Wharf Road,Apapa, Lagos, Nigeria
+234 (1) 440134
treated water supply point outside our
order to incorporate new technolo-
plant and refurbished a local school
gies that increase efficiency, speed
in the vicinity of our plant. These
and connectivity, and allow the com-
sustainability projects, especially the
pany to more fully utilise its talented
water supply, have dramatically im-
workforce to drive greater supply
proved the day to day lives of millions
chain success. “Connectivity remains
of people. Making a difference in a
the key challenge to fully deploying
country where basic infrastructure
digital transformation across our op-
is not a given is something I hadn’t
erations. We’re working with our main
experienced before in my career and
suppliers to increase connectivity be-
something I will surely take with me
tween our equipment and to elevate
when leaving the country.”
our predictive maintenance capabili-
Within the Nigerian Bottling Com-
ties. Similarly, for our fleet manage-
pany’s own operations, Chantouma-
ment division, we are investing in full
kos has been working constantly in
digitalisation with interactive, real-
NOVEMBER 2019
time report systems for optimising our fleet’s efficiency,” says Chantoumakos. He adds: “Industry 4.0 is expected to provide a direct connection between the consumer and manufacturers, making the industry almost immediately responsive to consumer feedback and developing needs.” In Nigeria, this is perhaps truer than anywhere else in the world. “In this market there is a paradox: while the basic infrastructure remains a challenge in several areas across the country, internet use is extremely
203
high, especially amongst younger people,” Chantoumakos elaborates. “I recently read that Nigeria is second worldwide, behind the Philippines, in time spent per capita on social media. This indicates the huge opportunities we have to pull feedback from consumers almost instantly and adjust our plans accordingly.” Looking to the future, Chantoumakos is confident that the Nigerian Bottling Company will continue to live up to its tradition of excellence within the market by incorporating digital technologies that allow it to meet demand in a sustainable way. “We’ve e uro pe .busi ne ssc hief. com
N I G E R I A N B O T T L I N G C O M PA N Y
204
“Nigeria is second worldwide in time spent per capita on social media. This indicates the huge opportunities we have to pull feedback from consumers almost instantly and adjust our plans accordingly” — George Chantoumakos, Supply Chain Director, Nigerian Bottling Company
NOVEMBER 2019
205
been operating in Nigeria for 68 years, and we are very proud of the fact that the entire Coca-Cola Hellenic Group originated here. We have been sustaining market leadership in times of great hardship in the country, so we can only plan to continue being market leaders in every sector in which we operate.�
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