EUROPE EDITION DECEMBER 2018 europe.businesschief.com
EXCLUSIVE VIDEO
Digital disruption in the food and drink space
Technology transformation built on trust Spreadshirt: keeping it simple amid digital transformation City Focus
DUBLIN
BUILDING A TECH-SAVVY POWERHOUSE
TOP 10
BIGGEST CAR BRANDS IN EUROPE
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WELCOME
W
elcome to the latest Europe edition of Business Chief!
As organisations the world over adopt new digital transformation strategies, the age-old finance industry is no different. Indeed, banking behemoth Santander is looking to utilise data on its journey to build trust and a quality customer experience. “Technology is fundamental to banking and fundamental to what we do here. Our aspiration is to be the best open digital bank so we need to stay abreast of the latest developments,” says Andy Pearson, who we sat down with alongside David Hayes for an exclusive video interview at Santander UK’s Milton Keynes office. Meanwhile, we caught up with Preoday to find out how the business is digitally disrupting the food and drink space, and Olivia Minnock caught up with
Philip Rooke, CEO of European-turnedmultinational e-commerce company, Spreadshirt, to find out how businesses can remain productive by keeping things simple amid digital transformation. For our city focus this month, we zoom in on Dublin and examine its journey to become a European technology hub. We’ve also brought you a list of the top 10 most popular car brands in the region. Don’t forget to check out our company profiles on SMAG, Ansaldo and EMASA. Enjoy the issue! Laura Mullan. laura.mullan@bizclikmedia.com
e u r o p e . b u s i n e s s c h i e f. c o m
05
CONTENTS
12 Santander UK
igitally D disrupting the future of food ordering
32
44
54
DUBLIN City Focus
66 Spreadshirt
simplicity is key amid its digital transformation
Top 10
most popular car brands in Europe
CONTENTS
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DECEMBER 2018
FINTECH
13
Technology transformation to remain a trusted partner WRIT TEN BY
OLIVIA MINNOCK PRODUCED BY
JA MES PEPPER
e uro pe .busi ne ssc hief. com
S A N TA N D E R
Banking behemoth Santander is undergoing a significant digital transformation in an evolving industry — Andy Pearson and David Hayes explain how this improves the lives of customers and communities 14
P
art of the global Santander Group, Santander UK has become a mainstay of British banking, and is
a familiar sight on the UK high street with over 1,000 branches and 50 corporate business centres across the nation. Now, the finance giant is undergoing a significant digital transformation in order to improve the lives of its customers and their communities. Keen to explain this transformation and what it means to the bank were David Hayes, Chief Data Officer and Head of Data Services; and Andy Pearson, Managing Director of Santander UK Technology and Head of Digital Services. We caught up with the pair at Santander UK’s Milton Keynes office. Known throughout the UK as a ‘new town’ built almost from scratch just 50 years ago, Milton Keynes has a reputation for cuttingDECEMBER 2018
FINTECH
edge modernity and so the location, as well as the office itself which has been revamped with colourful open spaces and well-lit breakout areas to promote collaboration between staff, truly reflects Santander’s personality as a decades-old institution which is still tech-driven and keenly keeps up with a changing sector and the rapid development of customer demands.
AN EVOLVING INDUSTRY Technology is disrupting every industry, and banking is no exception – but with organisations like Santander forming such an integral part of everyday life, present at key moments and within communities, this throws up unique challenges and opportunities in the sector. Hayes comments on the recent transformation of the industry: “Data has become prominent for many reasons. Here in banking, there’s a whole world of data at our fingertips that can help us improve the lives of our customers.” The entire industry is adapting to new technology, and indeed Hayes is an active participant in national organisation DataIQ Leaders as well as FIMA, an annual European conference on financial information management. Hayes also recently spoke to the Bank of England about how Santander leverages Big Data among other disruptive technologies. e uro pe .busi ne ssc hief. com
15
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“ Customers are used to using Instagram and Facebook — they’re used to instantaneous responses, so we need to be able to provide that.Our goal is to give a seamless, transparent journey to our customers” — Andy Pearson, Managing Director, Santander UK Technology
fundamental to banking and fundamental to what we do here. Our aspiration is to be the best open digital bank so we need to stay abreast of the latest developments and adapt to new ways of working, and be responsive to what the market and the customer needs.” Pearson cites two key elements of technology transformation: “One is how we interact with our customers – and the changes in the way we’re building applications for mobile… we’re looking to digitise the way we interact with our customers.” However, the second element comes from within: “We also need the right data at the back end, and to explore that data to make
“They’re on a very similar journey to us,
sure those interactions are as mean-
and were keen to discuss some cultural
ingful and insightful for our customers
and principle things Santander is doing
as they can be.
that they can learn from. As a whole, the
“Data is fundamental to both of these
banking industry is really taking these
things, and as we move forward increas-
technologies on,” he adds.
ing our understanding of data through AI and machine learning is key,” he
A TECHNOLOGY FOCUSED INSTITUTION
adds. “Customers are used to using
Santander is taking these industry
Instagram and Facebook – they’re
changes in its stride, all the while
used to instantaneous responses, so
focusing on the most important
we need to be able to provide that. Our
aspect: customer experience. As
goal is to give a seamless, transparent
Pearson explains: “Technology is
journey to our customers.” e uro pe .busi ne ssc hief. com
19
S A N TA N D E R
ALL ABOUT THE DATA Gathering as much data as possible can help to improve this customer journey – but only if the right tools are in place to make use of it. “Data gives us the ability to analyse and understand how our customers interact with us, so we can design processes more effectively,” Pearson explains. Within Santander too, it’s the data that makes the difference. “Big data has been absolutely transformational to us as an organisation. We partner with Cloudera to run our big data platform here in Santander UK. I was able 20
to understand through this collaboration that we don’t need to have silos of data going E X E C U T I V E P R OF IL E
Andy Pearson is the Managing Director of Santander UK Technology Engineering and Head of Digital Services. After a successful career in consultancy, he joined Santander in 2006 and held senior roles in IT during Santander’s integration of other UK banks. In 2015 he took the lead of the engineering and delivery division which he brought into the digital era. Now, Pearson is driving the transformation of Santander UK into an agile organisation bringing the business, operations and technology teams together under a domain-driven and service-driven model.
DECEMBER 2018
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21
forward – and if you get rid of silos, you
A TRUSTED MEMBER OF THE COMMUNITY
can truly transform the way people
“Communities are really important to
across the organisation behave.”
us in Santander,” Hayes emphases.
Santander’s use of data reflects its
“Santander has targets to make sure
commitment to its customers, as well as
everyone takes part in community work,
how integral a part the bank plays in
be that abroad or locally.” Indeed,
people’s everyday lives and in wider
recently a group from the Milton Keynes
communities. “The human element is
office returned from building classrooms
really key, particularly if you’re making
in Cambodia, whilst raising money for
difficult financial decisions,” says Hayes.
charities closer to home, Age UK and
“If you’re going to take out a mortgage
Barnardo’s, and last year Hayes himself
which is going to shape your life and your
spent some time helping a local food
spending for the next 25 years, you need
bank. “The motivation you get from
to trust and know that you can rely on us.”
making a real difference in your local e uro pe .busi ne ssc hief. com
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CLICK TO WATCH : ‘TRUST IN BANKING AT SANTANDER UK WITH CDO DAVID HAYES AND MD ANDY PEARSON’ 23 area is great, and is very healthy for an
in different parts of the organisation.”
organisation like Santander,” he adds.
This commitment to communities
In addition, Santander as a global
reflects the trust which Pearson is keen
organisation is busy strengthening its
to emphasise as integral to Santander.
commitment to the UK with a revamp
“Trust is a really strong foundation – secu-
of its Milton Keynes site and a brand-
rity is important because our customers
new £75mn office in Bootle, Liverpool,
have entrusted us with their information.
which is set to house 2,500 staff. “These
Security is fundamental for any bank,”
are historic sites for Alliance and
he explains. “We have a design principle
Leicester and Abbey National. The UK
of building security from the bottom up,
bank is one of the biggest elements
and going forward the banking industry
of the Santander group and we’re very
has the opportunity to build on that trust.
committed to our UK base,” Hayes
There are new value propositions we can
explains. “We’ve got 14mn active
explore here, and indeed for the wider
customers here and over 20,000 staff
banking industry, to provide identity e uro pe .busi ne ssc hief. com
S A N TA N D E R
management for the wider market. “Customers are trusting us with their data. We need to verify identities for a whole variety of regions – so there are opportunities for a bank as that trusted partner within the wider industry, and that’s something we need to look at going forward.” This strong culture of trust, community and collaboration runs through every aspect of the business, not least the relationship Santander maintains with its vendors and partners, all of which have equally stringent principles on security and much more. 24
“When we work with a third party, we try to make sure we work in partnership with them,” he emphasises. “We spend a fair bit of time making sure they have the right fit for us, both culturally and architecturally.” “Part of our methodology is to see, experiment, improve concepts, test and learn before we take a leap into particular technologies,” says Pearson. “Experimentation and building that collaborative relationship is important in understanding we’re working with the right partners moving forward.” Alongside Cloudera, a leading platform for Big Data and data science which enables Santander to become data driven, the bank works with a variety of carefully selected partners that have been critical for its ongoing digital transformation. DECEMBER 2018
FINTECH
This includes Microstrategy, which provides an enterprise wide platform for Business Intelligence (BI) and analytics; NuoDB, a cloud database for digital applications that can run on premise; Pivotal, a technology development company that provides platforms and tools enabling organisations to develop digital experiences; and Everis, a consultancy providing business and technology solutions for mission critical challenges.
THE RIGHT CULTURE Throughout the significant technology transformation Santander continues to undergo within a changing industry, its E X E C U T I V E P R OF IL E
David Hayes is Santander UK Chief Data Officer and Head of Data Services. He is a recognised leader in the data industry with a long career in different areas of Santander UK. He has been driving the cultural change about data in Santander UK since he was appointed as CDO in 2014. Hayes is passionate about what data can do to create value for customers and communities and thus is transforming data into a commonplace asset that everyone in Santander can use to help customers, always with the utmost awareness to governance, privacy and security.
e uro pe .busi ne ssc hief. com
25
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FINTECH
CLICK TO WATCH : ‘ANDY PEARSON, MANAGING DIRECTOR OF SANTANDER UK TALKS TECHNOLOGY TRANSFORMATION’ 27 people remain key, and managing the significant culture changes transforma-
brought together to drive change.” Ensuring that these skills are in place
tion brings is vital. “It’s easy to underes-
across the organisation, Santander is
timate the amount of impact that cultural
also committed to diversity, such as
change has on the ability to make
ensuring a mix of men and women in the
technology change,” Hayes reflects.
tech-led organisation. “Gender diversity
“We run change management pro-
is very important to us,” says Pearson.
grammes and provide training, but of
“We were a founding signatory of the
course we have some way to go. We’re
HMRC Women in Finance Charter. We
on a journey. One thing we have to do
know that in the industry about 17-20%
is to articulate data as a profession;
of roles in technology are filled by women.
understand and appreciate the different
We’re fortunate that we have about 30%
elements of that. There are very
of our roles filled by women – however,
different skillsets that come in – soft
we currently only have 19% in senior
skills and technical skills need to be
roles, so our goal is to get that to 25% e uro pe .busi ne ssc hief. com
S A N TA N D E R
Cloud. Containers.
Culture.
Transform your business, not just your IT.
FINTECH
29 by 2022. Role models are very important,” he adds. “We are participating in the Thirty Per Cent Coalition where we have role models, both men and women, to mentor women in our organisation, and women at Santander are being mentored by those from other organisations.”
TECHNOLOGIES OF THE FUTURE In addition to Big Data being fundamental to Santander’s offering and the care it can provide each and every customer and community, the bank will continue to explore other technologies such as artificial intelligence, machine learning e uro pe .busi ne ssc hief. com
S A N TA N D E R
capabilities and more. “Machine learning
learning. Now we have that core data
is a technology we’re exploring with some
platform, that’s going to allow us to
gusto at Santander,” says Hayes. “So far,
explore these new technologies
it’s been important from an operational
increasingly as we go forward.”
efficiency perspective. It’s going to change the way we work, the way we
community all keep a finger on the pulse
think, the decisions we go through, the
of new developments in the evolving
speed at which we interact with our
industry, with Open Banking set to take
customers and the offering we can give
centre stage. “That changes the game
them – but to embed machine learning
for us,” says Hayes. “Data is an asset
we need to make sure it’s built with great
and this allows competitors to build on
data engineering to sit behind it.”
assets we’ve got – when you then throw
Pearson adds: “Establishing our big 30
Hayes, Pearson and the Santander
in the capability to build AI or run machine
data ecosystem is key to us. We’re still
learning algorithms, the opportunity
early on in our journey of AI and machine
through technology is massive.”
CLICK TO WATCH : ‘DAVID HAYES, HEAD OF DATA AT SANTANDER UK TALKS CHANGE CULTURE MANAGEMENT’
DECEMBER 2018
FINTECH
“ Here in banking,there’s a whole world of data at our fingertips that can help us improve the lives of our customers” — David Hayes, CDO, Santander
31 Pearson, too, cites Open Banking as one of “a whole series of regulatory activities that are changing the face of
customers are and how to be more relevant in their day-to-day activities.” Overall, Hayes concludes that the
the banking industry”. He adds: “The
centuries-old banking industry will
making available of information about
fundamentally transform with Santander
customers to a whole range of new
at the fore. “I firmly believe that technol-
players is going to fundamentally change
ogy will completely change banking in
the way customers interact with financial
the next 20 years. The challenge for
organisations. There will be new players
the industry will be to embrace those
– and as a bank, we need to respond to
technologies – and the winners will be
that. We need to measure the experienc-
those who can do that in a way which is
es we build, and remain relevant for our
right for the customer.”
customers as we support their goals in life. Opening up banking data gives us opportunities to understand who our e uro pe .busi ne ssc hief. com
LEADERSHIP
32
igitally D disrupting the future of food ordering With the takeaway market skyrocketing and restaurants vying to win over customers, could a white-label technology platform help food and beverage players cut through the noise? WRITTEN BY
L AUR A MULL AN
DECEMBER 2018
33
e uro pe .busi ne ssc hief. com
LEADERSHIP
W
hether you like a fiery vindaloo or a savoury American burger, the restaurant boom has meant that
whatever cuisine you fancy it won’t be too difficult to find. In fact, in the UK alone, around 740 new food and beverage units have opened annually since 2012 and, in the past year, this figure has nearly doubled to
1,333, according to the Local Data Company (LDC). This has offered more choice for consumers but it has also meant that restaurant owners have to be savvier than ever when jostling for sales. As the fight for 34
profit heats up and restaurant owners scramble to gain more footfall, could the help needed by the food and beverage industry be at our very fingertips? The food delivery phenomenon has seen a meteoric rise over the past decade. With a few taps and swipes of their devices, consumers can have whatever meal they want at their doorstep in minutes. This business model has proven a perfect fit for today’s ‘on-demand economy’. Indeed, worldwide, the market for food delivery stands at €83bn (US$96.2bn), or 4% of food sold through restaurants and fast-food chains, according to McKinsey. Digital ordering platform Preoday has carved a unique path in the takeaway sector, DECEMBER 2018
“Personalised marketing increases the odds of engagement and conversions by appealing to each individual’s likes and needs. Therefore, customers are more likely to go to you rather than the competition.” — Matt Graywood, COO at Preoday 35
e uro pe .busi ne ssc hief. com
LEADERSHIP
“ That direct relationship could to pay, arrange delivery or collect food and beverages with just a few clicks of prove to be the a button. “For our clients, this software is business critical,” says Matt Graywood, differentiator for COO at Preoday. “Some of our customwhether they fail ers take over 30% of their income via or succeed” digital ordering on the Preoday platform.” providing mobile apps and web inter-
face platforms which allow customers
What gives this tool a competitive edge, though, is the fact that it is a white label technology, meaning that it can be fully branded and managed by the 36
restaurant or eatery, rather than a third party. “Our clients recognise that they need to build a relationship with the customer by themselves and so a white label product like Preoday is ideal because the consumer doesn’t see Preoday, they just see the brand,” explains Graywood. “This means that the business is able to engage with the customer directly in terms of communication and promotions. They also own the data from customers’ purchases which they can use to build their proposition and promotions around their customer base. That’s something they don’t get with aggregators in the market. They’ve got complete ownerDECEMBER 2018
— Matt Graywood, COO at Preoday
ship and that direct relationship could prove to be the differentiator for whether they fail or succeed.” Online platforms are an effective way to drive digital footfall. Not only do they offer new revenue streams, but some can also take the customer experience to the next level. Preoday prides itself on creating a functional yet customtailored platform that can meet the niche and often demanding needs of today’s restaurants and eateries. “The differentiator is that this technology has extremely rich functionality but it’s also a very flexible platform,” observes Graywood. “It’s built like a robust transaction engine so it can cope with high-volume takeaway periods like lunchtime peaks during the week or the weekend.” ‘Flexible’ is a fitting word to describe the digital ordering platform. By offering configurable tools, business owners can use a management dashboard to have total control over processing, whe- ther they want to print out orders, send customised messages or even offer push notifications. The best part, according to Graywood, is that the platform also e uro pe .busi ne ssc hief. com
37
LEADERSHIP
provides rich analytics so that the sector can better understand their customers, whether that’s knowing how much a particular customer tends to spend or what their buying habits are. “We carried out a survey in April which asked what the key challenges are that chains are facing today,” notes Graywood. “The feedback we got was that 30% of respondents were using an aggregator but 70% prefer their customers to order directly because not only is it a better margin for them, but they also get to provide 38
the service they want directly to their customers and get to capture data regarding their customer’s purchasing habits. “Through data analytics, they can start to build a profile of what that person’s ordering, who their best customers are, what they tend to order and how they can better target their promotions around that customer base and really start to engage with them,” he adds. Large retailers have been capturing customer data for years but the restaurant sector has been slower in its uptake. This is undoubtedly untapped potential. By using highly specific data, Graywood notes that eateries can use analytics to target both loyal and infrequent custoDECEMBER 2018
39
mers alike by sending a personal message to encourage a return visit which could include a special discount applicable to their favourite item, for instance. “It offers a new level of differentiation,” Graywood says. “You can use the data as you feel fit. You can focus a promotion right down to the individual which brings them that much closer to your brand. Personalised marketing increases the odds of engagement e uro pe .busi ne ssc hief. com
LEADERSHIP
and conversions by appealing to each individual’s likes and needs. Therefore, customers are more likely to go to you rather than the competition.” With Greggs, the Aviva Stadium, the Royal Opera House and others all signing up to the service, Preoday’s customer list makes for impressive, diverse reading. The venue, location, and the customer may change but the fundamentals of good customer experience all remain the same. “The requirements of an event-based venue 40
may be different to that of a restaurant in terms of set-up but for pre-order, at the heart of it it’s very similar,” observes Graywood. “From a technology point of view, it’s a cloud-based platform whereby all our customers use the
‘In the UK alone, around 740 new food and beverage units have opened annually since 2012 and, in the past year, this figure has nearly doubled to 1,333, according to the Local Data Company’
same code base, so everybody’s using the same platform. This means that we can build everything once and provide it to all customers. Then, whenever we make an improvement or a new functionality is added everybody gets the benefit from that.” When peak times hit, and orders are piling up, efficiency can make or break a restaurant’s reputation. By eliminating some of the hurdles, the software DECEMBER 2018
— Matt Graywood, COO at Preoday
CLICK TO WATCH : ‘THE PREODAY PLATFORM — A QUICK OVERVIEW’ 41
platform also helps to shorten queue
and there were missed sales too. They
times, reduce hassle and enhance the
selected Preoday and we implemented
customer experience. “Take Shack, for
a mobile and online ordering app which
instance – a Norwegian burger chain
gave customers the opportunity to
we’ve had as a customer since 2016,”
order ahead, skip the queue and then
notes Graywood. “They had three
pick up the food when it was ready
restaurants which were so popular that
rather than waiting.
people were queuing for an hour every
“The key thing about Shack was that
day to buy their burgers. The problem,
they had a really loyal customer base
whilst everybody kept going back to the
but they had a bottleneck whereby
food, was that they weren’t particularly
customers were all trying to purchase
happy about the waiting time.
at the same time,” he continues. “By
“Customer satisfaction was low, some adding this functionality, the customer people wouldn’t queue for that long,
success rate went right up. Mobile and e uro pe .busi ne ssc hief. com
LEADERSHIP
42
DECEMBER 2018
online ordering now account for 30% of their sales, so it’s a key part of their business.” With customers across the globe and multi-language capabilities, the opportunities for Preoday are limitless. In its short five-year history, the company has already boarded a variety of food and beverage behemoths, expanded its footprint globally and helped restaurants and food chains overhaul the customer experience. This could be the difference that helps a restaurant cut through the noise in today’s ever-competitive market and, for Graywood, this is what makes working at the firm so rewarding. “Whatever your needs are, we want to be the default ordering technology,” notes Graywood. “At its core, most of the team are the same people who built the technology and started the business in the first place. Everyone feels invested in it; they want to see it succeed, they want our customers to succeed. When we work with a restaurant and we see their vision come alive, we’re very proud that it’s thanks, in part, to Preoday.”
e uro pe .busi ne ssc hief. com
43
TECHNOLOGY
44
Spreadshirt
simplicity is key amid its digital transformation AS TECH ADVANCES, KEEPING THINGS SIMPLE CAN DRIVE EFFICIENCY AND HEIGHTEN CUSTOMER EXPERIENCE, SAYS PHILIP ROOKE, CEO OF GLOBAL ECOMMERCE COMPANY SPREADSHIRT WRITTEN BY
DECEMBER 2018
OLIVIA MINNOCK
45
e uro pe .busi ne ssc hief. com
TECHNOLOGY
F
rom promoting snappy slogans and allowing people to create to helping entrepreneurs and small businesses
thrive, global self-expression company Spreadshirt made its name as a European
T-shirt printer, but is now fast becoming a much more diverse, global entity. When we last spoke to CEO Philip Rooke, the company was just starting to expand in the US. Now, it has reached over €100mn revenue thanks in part to this new market and is looking to optimise efficiency and stick to its customer centric vision in order to help the European business grow in uncertain times where 46
productivity is ever more important. “The majority of our business is European,” says Rooke. “That’s what drove us over €100mn (US$114mn) revenue.” Last year, Spreadshirt reached €106mn (US$121mn) in revenue, making €8.6mn (US$9.8mn) EBITDA. “This probably makes us the most profitable in our industry, and that’s because we’re able to concentrate on the right things.” For Spreadshirt, the US marks a mammoth opportunity, but the region is not without its challenges. “America is a huge market – the average American buys 9.4 T-shirts per year, while the average German buys 4.5,” Rooke explains. “More importantly, in most European countries we have three DECEMBER 2018
47
“American companies are very good at being lean, agile and customer focused” — Philip Rooke, CEO, Spreadshirt
or four competitors – and are nearly always number one – but in America we’re tracking 200 companies to compete with.” In this relatively new territory, Spreadshirt must step up to the plate and enhance customer experience for the modern, tech-savvy consumer. “Americans are not very patient,” Rooke observes. “If your usability is poor, they leave for a competitor. We really had to work on getting the experience much simpler. “American companies are very good at being lean, agile and customer focused,” he adds. As such, a key transformation Spreadshirt has implemented, not only in the US but e uro pe .busi ne ssc hief. com
TECHNOLOGY
throughout its business, is to simplify
our customers do that in their spare
everything from production processes
time? I look with horror at how much
to its user platforms – not least mobile,
money I’ve spent on Amazon recently
which is important to nail down since
– most of it on mobile as it’s so simple,”
55% of Spreadshirt’s traffic last year
he adds.
was mobile. “With a lot of ecommerce,
Now, all development of the ecom-
all the browsing takes place on buses
merce platform happens mobile first,
or in bars when people are on the move
forcing the business to
or have a spare moment.
ensure the experience is
“By concentrating on mobile, it forces
48
as simple as possible.
you to simplify the consumer’s journey
“You can always imagine
so they can not only browse but easily
extra features, but they
buy on mobile. Is the platform simple
can make it harder
enough to create your own T-shirt or
to use. Every feature and
browse the creations of others? Can
function must be simplified,
DECEMBER 2018
right down to marketing communication
items. Coupled with the number of
because you can’t write two paragraphs
markets it operates across, Spread-
on why a premium T-shirt is better than a
shirt in 2018 is in may ways a complex
normal one – nobody’s going to read that
beast in which, as Rooke puts it, “there
on mobile. It forces everyone from web
are 10,000 things that could go wrong.”
designers to purchasing and assortment
This in itself has forced Rooke to simplify
teams to simplify.
his own outlook and that of his leader-
“Five or 10 years ago, the more
ship team. “There’s no way to manage
features you added the more exciting it
all that end to end – I’d go crazy. So,
was, but now people want to achieve
over the past couple of years, there’s
tasks really simply and as such the
been a big shift in how we manage
80/20 rule is cutting back in,” adds
the business.
Rooke. “You have to concentrate on what 20% of features, stocks, offering,
“I don’t manage or oversee all elements – I’ve employed people who are a lot
makes up 80% of your business.”
49
Across the board, from mobile ecommerce to the factory floor, digital transformation is certainly “forcing a lot of simplification,” according to Rooke. This is especially challenging for Spreadshirt when its business model is anything but
“Five or 10 years ago, the more features you added the more exciting it was, but now people want to achieve tasks really simply” — Philip Rooke, CEO, Spreadshirt
simple – it has several businesses within it including people who sell on Amazon, directly to market, or create and buy or sell their own e uro pe .busi ne ssc hief. com
TECHNOLOGY
better than me,” he explains. “People used to write reports and ask for approval on what they were doing, but now we say ‘if you can turn this around, we don’t really care what you’re doing – we care what results you’re achieving.’” Spreadshirt now uses a system called Objectives and Key Results (OKR), which is used by the likes of Google and LinkedIn, to empower various teams. Objectives for the quarter are agreed among directors and it’s up to individuals and teams to go away and achieve these however they see fit. 50
“That’s the only way to manage a complex international business,” says Rooke. OKR allows empowerment to run right through the business. “People take responsibility. They care. They like the freedom of being able to think about how they can do things differently. Teams and individuals can really take ownership of what they’re doing.” This is vital when as CEO, Rooke lives on a different continent to some of his teams and might only see them a few times a year. Having trust and empowerment in place means C-level executives have their time freed up to communicate where it matters. “When I’m talking to the Las Vegas factory, I’m DECEMBER 2018
“In the past, we thought things were clever if they were complex. But actually, if someone can work out how to make something complex simpler – that’s the cleverest thing” — Philip Rooke, CEO, Spreadshirt
51
e uro pe .busi ne ssc hief. com
TECHNOLOGY
52
DECEMBER 2018
talking about quality and cost improvements and why they matter – before, I was worrying about processes. “We’ve abandoned nearly all the internal reporting – with the OKR system, and daily reports that show the KPIs that come out, it’s so much simpler and there’s less red tape. The whole mantra is around simplicity – trying to achieve something in a quarter is the simplest way to move it forward. People get rid of the big, complex ideas and brainstorm how to do things in a more complex way. We celebrate that at Spreadshirt. In the past, we thought things were clever if they were complex,” Rooke adds, “But actually if someone can work out how to make something complex much simpler – that’s the cleverest thing.”
e uro pe .busi ne ssc hief. com
53
CITY FOCUS
City Focus
DUB
54
DECEMBER 2018
F E AT U R E
BLIN Dublin — the ideal location for a European venture? Dublin could make an ideal business hub, with the Irish capital famed for its culture but also making waves as a digitally-savvy powerhouse WRITTEN BY
LAURA MULLAN
e uro pe .busi ne ssc hief. com
55
CITY FOCUS | DUBLIN
56
D
ublin may be a small capital
the Eurozone, the city has a unique
but it is quickly gaining a big
advantage which it has capitalised
reputation. As the UK negoti-
on. In 2017, Ireland was placed eighth
ates its exit from the European Union
in Forbes’ annual Best Countries for
(EU), businesses from across the globe
Business ranking, praised for its low
have turned their attention to the Irish
corporation tax and talented pool of
capital, citing it as the ideal hub for
high-tech labourers. Looking forward,
organisations seeking a European base.
the future looks bright for Dublin, but
As a committed member of the EU and
how has the capital achieved this
the only English-speaking country in
world-class status?
DECEMBER 2018
TEMPLE BAR
TRINITY COLLEGE
GUINNESS STOREHOUSE AVIVA STADIUM
CLICK HERE TO EXPLORE DUBLIN
MELTING POT OF TALENT Ahead of the curve, Ireland is already home to some of the world’s top companies: 17 out of the top 20 global software companies have locations in the country, as well as 14 of the top 15
57
medical tech companies, 20 out of the top 25 financial service companies, 8 out of 10 of the top automation companies and all top 10 pharma companies. As major players like Intel, Twitter, Pfizer, Citi, Huawei, Takeda, Fujitsu, and Novartis settle in the Emerald Isle, the country has pushed forward as a world leader in Internet of Things (IoT), Big Data, ICT Skills, energy efficiency, health innovation and cloud computing. The key to Dublin’s success may lie with its people: the brightest of European talent has flocked to the Irish capital and, combined with its own multilingual, highly-educated workforce, e uro pe .busi ne ssc hief. com
CITY FOCUS | DUBLIN
this has created a melting pot of skills and innovative thinking. Ireland is often praised for its forward-thinking education system: this year, Ireland was ranked 19th out of 50 countries’ higher education systems in the Universitas 21 Ranking. This has helped the capital attract a workforce that is well-educated, mobile, ambitious and innovative.
A CEL-TECH TIGER With its pro-business attitude, Dublin has great promise, not least when it comes to
Currency
58
Euro 553,000 Population
Nearest airport
14km
Dublin Airport
DECEMBER 2018
the technology industry. Indeed, Vice President & MD of Google UK and Ireland, Ronan Harris, highlighted this potential when he called the country the ‘data capital of Europe’. Ireland is, by all means, a frontrunner in
CLICK TO WATCH : ‘VISIT DUBLIN: SUNNY DAYS IN DUBLIN’ 59 technology. Today, some of the biggest names in tech can be found dotted along the so-called ‘Silicon Docks’ area of Dublin – a bustling business district. In fact, Facebook and Google alone are on track to occupy 4% of all commercial office space in Dublin next year, according to forecasts from estate agents Lisney. Ireland has a thriving IT industry, with 40% of its GDP – some €72bn per annum – deriving from the sector, according to reports by Sigmar Recruitment. The country is the second largest software exporter and as such, e uro pe .busi ne ssc hief. com
CITY FOCUS | DUBLIN
it has established itself as a leading
companies, with firms like Big Fish, EA
location for companies in the sector.
and Havok building a presence in the
Dublin is also fertile ground for start-
region. This reputation hasn’t gone unno-
ups. Not only is there a supportive eco-
ticed by the international business comm-
system, but there is also sufficient fun-
unity either; this year, Dublin came sec-
ding to be found. Last year, for instance,
ond place in the FDI European City of
Irish technology companies raised
the Future rankings, driven by strong
â‚Ź994mn in venture capital funding, up
investment in software and IT. As a reg-
12% on the year before, according to
ion, Dublin was also ranked as the top
the Irish Venture Capital Association.
small region for Economic Potential
Renowned for its creative talent with
and Business Friendliness by FDI.
high communication skills, Dublin has also attracted interest from games 60
DECEMBER 2018
When it comes to data centre locations, Dublin is also firmly on the radar.
BIG BUSINESS IN DUBLIN: Prominent industry giants have chosen to position their headquarters in the Irish capital of Dublin.
SMURFIT KAPPA Paper-based packaging giant, Smurfit Kappa, started out as a box-making factory in Rathmines, an inner suburb of Dublin, in 1934. Today, it stands as the leading corrugated packaging company in Europe and one of the leading paper-based packaging companies in the world. With operations in 35 countries, the FTSE 100 company employs over 46,000 employees and reported revenue of €8.6bn last year. Headquartered in Dublin, the firm has been led by Group Chief Executive Officer Anthony ‘Tony’ Smurfit since 2015. Earlier this year, Smurfit Kappa acquires Reparenco, a paper and recycling business in the Netherlands, for €460mn. The company also resisted a takeover attempt by American packaging firm International Paper this year.
e uro pe .busi ne ssc hief. com
61
CITY FOCUS | DUBLIN
RYANAIR Headquartered in Swords, Dublin, low-cost airline Ryanair was founded in 1984. Ryanair carries over 130mn customers every year on more than 2,000 daily flights. Last year, Ryanair became the first European airline to have carried over one billion customers. Michael O’Leary has been Chief Executive Officer of Ryanair since 1994 and he is currently one of 62
Ireland’s wealthiest businessmen. The firm operates more than 400 Boeing 737-800 aircrafts. Today, Ryanair’s network serves 37 countries across Europe, Africa and the Middle East.
DECEMBER 2018
63
Investment in data centre construction
the Irish data centre market is set to
in Ireland is expected to reach more
continue on its upward trajectory.
than €9bn by 2021, according to pre-
All in all, it seems that Dublin’s thriv-
dictions by Host in Ireland and Bitpower.
ing business community, combined
Today, there are already 46 data cen-
with a strong ecosystem for entrepre-
tres in the country, with Amazon, Google,
neurship and a high quality of living,
BT and Facebook all having built facili-
make it an ideal location to set up –
ties. Thanks in part to a cold climate
and grow – a business.
which reduces cooling costs and the burgeoning renewable energy industry, e uro pe .busi ne ssc hief. com
10 & 11 April RDS Dublin
#DTS19 dublintechsummit.com
CASSIE KOZYRKOV Chief Decision Scientist, Google
DTS19 SPEAKERS
MARTHA LANE FOX Founder, lastminute.com
DOUGLAS TERRIER NASA CTO
JEETENDR SEDHEV New York Times Bestselling Author
MIHAI ALISIE Co-founder, Ethereum
T O P 10
66
DECEMBER 2018
Top 10
most popular car brands in Europe The automotive industry has long been praised as the backbone of the European economy, accounting for 4% of its GDP. Casting an eye over data from the European Automobile Manufacturers Association, we investigate which are the most popular car brands in both the EU and the European Free Trade Association (EFTA), ranked by new passenger vehicle registration in the first quarter of 2018. WRITTEN BY
LAURA MULLAN
e uro pe .busi ne ssc hief. com
67
T O P 10
68
10
Toyota Japanese car maker, Toyota Motor Corporation, is one of the world’s largest automotive makers. Best known for big-selling cars like the Camry and Prius, 197,385 new Toyota cars were registered in the first quarter of the year. In June, the automotive maker agreed to buy a $1bn stake in Southeast Asia’s largest ride-hailing firm, Grab. In March, Toyo revealed that it was joining forces with automotive suppliers Aisin Seiki and Denso to create Toyota Research InstituteAdvanced Development (TRI-AD), a new company focused on the development of self-driving cars.
www.toyota-global.com
DECEMBER 2018
69
09 Fiat
Founded in Italy in 1899, Fiat has emerged as an automotive powerhouse in Europe with 207,859 new Fiat vehicles registered in the first quarter of the year. One of the company’s most popular models is the Fiat 500. The model was first sold in 1957 and today it is sold in more than 100 countries. Today the company’s core markets are Europe and Latin America, but the brand also hopes to grow its presence in the Asia-Pacific through mergers and joint ventures. The car brand says that it sells more than 1.3 million units worldwide every year.
www.fiat.com
e uro pe .busi ne ssc hief. com
T O P 10
70
08 Audi
Audi is part of a trio of the luxury automobile manufacturers popularly known as “German Big 3�, with BMW and Mercedes-Benz being the other two. It remained a leading car manufacturer in the first quarter of the year with Europeans registering 212,347 new Audi cars. The Audi brand has been majority owned by the Volkswagen Group for more than 40 years. By 2025, the company aims to will sell approximately 800,000 electric cars and plug-in hybrids, which equates to approximately every third Audi self-driving cars.
www.audi.com
DECEMBER 2018
71
07
BMW Bayerische Motoren Werke, popularly known as BMW, remained an admired car brand in the first quarter of the year, with 213,051 new cars registered in Europe. The brand is produced by German automotive maker BMW Group, who also produces cars under its Mini and Rolls-Royce brands. BMW Group recorded that it had 129,932 employees and generated EURâ‚Ź98.68bn in 2017.
www.bmw.com
e uro pe .busi ne ssc hief. com
T O P 10
72
06
Mercedes-Benz A division of German company, Daimler AG, Mercedes-Benz is an automobile marque best known for luxury vehicles. 228,358 Europeans registered new passenger vehicles in the first quarter of the year. The firm is headquartered in Stuttgart, Baden-Württemberg, and it has adopted the slogan “the best or nothing”. In September, Daimler announced that company veteran Ola Kaellenius will become CEO next year. He will be the first non-German CEO to head up the firm.
www.mercedes-benz.com
DECEMBER 2018
05
73
Vauxhall–Opel For the first time since 1999, Vauxhall-Opel returned to profit after it was acquired from General Motors (GM) by France’s PSA Group last year. The GBP£1.9bn (US$2.4bn) deal makes PSA Group the secondlargest car manufacturer in Europe. In the first quarter of the year, 249, 756 new Vauxhall-Opel vehicles were registered in the continent. According to CNN, PSA Group said that Germany brand Opel and its UK sister brand Vauxhall generated an operating profit of EUR€502 million (US$587 million) in the first half of the year.
www.opel.com and www.vauxhall.co.uk
e uro pe .busi ne ssc hief. com
T O P 10
74
04
Renault The eponymous car brand by Groupe Renault has become a firm favourite in the European market. 287,04 new Renault cars were registered in the first quarter of the year, making it the third most popular brand during the period. The French firm has a two-decade-old alliance with Japanese car manufacturers Nissan and Mitsubishi. By 2022, the alliance hopes to double annual synergies to EURâ‚Ź10 billion by the end of the plan. Carlos Ghosn is currently CEO of Renault.
https://group.renault.com
DECEMBER 2018
03
75
Peugeot French automotive manufacturer, Peugeot, also cemented its position as one of the most popular car brands in Europe, with 269,788 new vehicles registered in the first quarter of the year. Part of PSA Group, Peugeot is the largest PSA brand worldwide. Founded over two centuries ago, Peugeot has a long-lasting history in the automotive sector. The Peugeot 203 was the first car produced after the Second World War, according to the firm.
www.groupe-psa.com
e uro pe .busi ne ssc hief. com
T O P 10
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DECEMBER 2018
77
02 Ford With 295,877 new vehicles registered
phere Institute’s ranking for the World’s
in the first quarter of the year, Ford has
Most Ethical Companies. Ford of
cemented its position as the third most
Europe AG, a subsidiary of Ford Motor
popular car brand in Europe. With top
Company, is headquartered in
models including the Ford Fiesta and
Cologne, Germany.
Ford Focus, the American brand has
https://corporate.ford.com
left a lasting impression on the European automotive market. The car manufacturer currently features in the Ethise uro pe .busi ne ssc hief. com
T O P 10
78
DECEMBER 2018
79
01 Volkswagen Topping the leaderboard, Volkswagen
manufactured some of the continent’s
has once again gained the spotlight as
most popular car models and, in the
the leading car brand in Europe. The
first quarter of the year, 464,678 new
car brand is manufactured by German
Volkswagen vehicles were registered.
automaker Volkswagen Group who
The company was founded in 1937 and
operates 120 production plans in 20
is headquartered in Wolfsburg, Germany.
European countries and a further 11
www.volkswagenag.com
countries in the Americas, Asia and Africa. From the Volkswagen Golf to the Volkswagen Polo, the brand has e uro pe .busi ne ssc hief. com
SWEDISH MINING AUTOMATION GROUP
80
PROMOTING DIGITAL TRANSFORMATION IN CANADA’S MINES WRIT TEN BY
L AUR A MULL AN PRODUCED BY
RICHARD DE ANE
DECEMBER 2018
MINING
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w w w.busi ne ssc hief. com
S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )
82
Business Sweden Canada with partners from the Swedish mining industry has created SMAG to help the mining sector evolve into a more sustainable and innovative industry. We spoke to Project Manager and Mining Industry Advisor, Christian Orrego Silvander, to find out more
DECEMBER 2018
MINING
M
ining is often cited as one of the last remaining industries to be disrupted by technology, but that is changing quickly.
From driverless trucks to robotic drills, digitisation is quickly bringing a new measure of safety to mines. It’s also boosting the efficiency of how we obtain the precious minerals needed to make everything from modern cars to devices. In the coming years, mining automation is primed for explosive growth, and it seems that one Nordic country is set to be at the epicentre of it all. Sweden may be a small mining nation but when it comes to mining technology, it’s considered to be in a league of its own. Looking to collaborate and foster innovation in the mining sector, six Swedish mining technology firms have joined forces with Business Sweden to create the Swedish Mining Automation Group (SMAG). Formed just one year ago, SMAG is a collaborative ecosystem that plans to revolutionise mining, creating a more sustainable industry by innovating holistic solutions together with mining companies. Jointly owned by the Government of Sweden and representatives from the Swedish business community, Business Sweden works across an array of different industries but mining has proven to be a key area for optimism. One such person who helped to steer this new focus is Business Sweden’s Project Manager and Mining Industry w w w.busi ne ssc hief. com
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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )
Advisor Christian Orrego Silvander. He believes that this collaboration between Swedish automation groups and other global miners is a win-win partnership. “Our mission is to help Swedish companies grow internationally, as well as to attract foreign investments to Sweden,” Silvander explains. “Sweden has a long history of providing solutions to the mining industry and it’s quite famous for having some of the leading original equipment manufacturers (OEMs) in 84
mines. Today more than 50% of the technology used in underground mines comes from Sweden.” Ericsson, Eprioc, SKF, Mobilaris, Sentian Technologies and Scania Mining: the founding members of SMAG make for impressive reading, and in conjunction with Business Sweden, they plan to bring the latest industry know-how and technologies to mining regions across the globe. One such country where SMAG is leaving a lasting impression in is Canada. A force to be reckoned with on the mining stage, Canada is a country that is renowned for its mining heritage. Last year, the industry contributed CAN$72bn DECEMBER 2018
MINING
“ SWEDEN HAS A LONG HISTORY OF PROVIDING SOLUTIONS TO THE MINING INDUSTRY AND IT’S QUITE FAMOUS FOR HAVING SOME OF THE LEADING ORIGINAL EQUIPMENT MANUFACTURERS (OEMS) IN MINES.” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden
(US$54.8bn) to its GDP, according to Natural Resources Canada. As such, Business Sweden and SMAG decided to zero in on Canada as a key regional focus. “The reason we revived this focus on mining was due to the positive outlook on mineral prices as well as the environment here in Canada,” summarises Silvander. “The mining industry is also focusing greatly on creating a more sustainable and innovative future through industrial collaboration and this resonates quite well in Sweden. Even though we’re quite a small mining nation – we only have 15 active metals mines – we have a long history of innovating through collaboration. That aligns well with the vision of the w w w.busi ne ssc hief. com
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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )
CLICK TO WATCH : ‘SIMS MINING — THE HORIZON 2020 PROJECT’ 86 Canadian mining industry too, which is
don’t have a strategy for digitising or
hoping to become more sustainable
automating their mines, but rather they
and innovative.”
have a strategy to improve safety and
There’s a lot Canada can learn from
increase productivity,” Silvander explains.
Sweden, observes Silvander, citing
“For them, the best way to do that was
Swedish mining operators Boliden and
to use digital technology.” Looking at
LKAB as “amongst some of the most
connectivity, precision technology,
progressive in the world”. Both of these
stabilising processes and eliminating
companies have been early adopters
waste as well as implementing new
of digital and automation technology
mining methods, these mines have
but interestingly, Silvander points out
proven to be gleaming examples of the
that this isn’t about technology for
benefits of mining automation and this
technology’s sake it’s, first and foremost
technological prowess hasn’t gone
about safety, productivity and efficien-
unnoticed worldwide.
cy. “For example, Boliden said that they DECEMBER 2018
“Recently, there’s been a lot of
MINING
87
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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )
FA C T S
• Last year, the mining industry contributed CAN$72bn to Canada’s GDP, according to Natural Resources Canada
88
examples of different demonstration projects that have been done mainly in
with other leading mining nations.” Cross-country collaboration is at the
Sweden and Europe quite recently,”
core of SMAG’s mission and ethos. But
continues Silvander. “All of them have
how has the organisation managed to
a goal to create safe and efficient mines
bridge both a geographic and cultural
by implementing automation technology.
divide? “When we started this initiative,
But this shouldn’t only be on Swedish
we tried to connect with key mining
soil. This should be something that is
organisations, the ones that are driving
implemented internationally. For Sweden,
innovation within the industry. We
with a population less than 10 million
started working with these regional
that’s dependent on international
and national companies. We found out
collaboration, I see this as a very good
their needs, how they operate, and how
opportunity for us to be the one who’s
we can collaborate with them because
leading the development but together
we all more or less have the same
DECEMBER 2018
MINING
ambition of transforming the industry to make it more sustainable.” By analysing the individual needs of mining operators and disseminating the ‘Swedish mining model’, SMAG has the ambition to help Canadian miners navigate their long-term roadmaps to digitise and automate their mines but, perhaps more importantly, they are also lowering the barriers between suppliers and mining companies to foster cooperation and future innovation. “With SMAG, we’re trying to foster a co-development culture and lower
E X E C U T I V E P R OF IL E
Christian Orrego Silvander Management consultant with passion for innovation, strategy and collaboration. Strong communicator with expertise in conceptualizing business ideas and pitching technology solutions. In depth experience of business development and internationalization of tech companies and start-ups in industries such as mining, healthcare, biotech, and cleantech. Currently leading the Swedish Mining Innovation Group (SMAG) with six leading mining suppliers with the intention to enable holistic solution within mining through cooperation with mining companies. In addition establishing strategic alliances with Canadian stakeholders with the objective to establish a mining collaboration platform between Sweden and Canada. w w w.busi ne ssc hief. com
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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )
the variant between vendors and
they’re very keen to transform the
mining `that can really be learned
industry. But I think by allocation
from Sweden,” observes Silvander.
more resources to trying innovative
“The Canadian Mining industry has
solution in the mine rather than
created solid roadmaps for innova-
establishing new roadmaps for them,
tion but there is a need to convert
will accelerate the transformation.
them to actions. Most of the industry
That is really what I see as the missing
also have innovation managers so
link to this puzzle. I think they are
90
DECEMBER 2018
MINING
“ TODAY MORE THAN 50% OF THE TECHNOLOGY USED IN UNDERGROUND MINES COMES FROM SWEDEN” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden
91
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True digitalization of underground mines, enabling doubledigit productivity increases AND safety improvements.
Real-time Situational Awareness
Ventilation On Demand
Fix those low hanging fruits that waste time and lower face utilization.
We let the presence of machines control the ventilation which is very fast to setup remotely.
Short Interval Control
Emergency Evacuation
From just being monitoring to become operational and able to replan during a shift.
Save lives by shorten the time to evacuate the mine in the case of an emergency.
Optimized Machine Utilization
Mass Localization
Analyze integrated machine data vs plan to optimize your machine utilization.
Another low hanging fruit that locates equipment in a very cost-efficient way.
Traffic Awareness
Improvements by Analytics
Minimizing traffic congestions and make your transports smooth and safe.
Enables you to continuously monitor the face utilization outcome and track productivity.
www.mobilaris.se/mce
MINING
93
going in the right direction and SMAG
munication company that offers mine
could definitely help with this challenge.”
connectivity and today, they’re deploy-
How to meet the demands of Industry
ing 5G technology which could be an
4.0 is one of the most pressing ques-
innovative way forward for mines in
tions for mining operators today. By
Canada. We also have one of the most
working with a rich ecosystem of holistic
prominent OEMs, Epiroc, who when it
solutions rather than single products,
comes to the automation of equipment
SMAG believes it provides a unique
or meeting KPIs in underground mines,
solution. “This way of working together
they are one of the firms leading the way.”
with a group, as opposed to one vendor
Other members of the ecosystem
is a very new concept, especially in the
include Mobilaris, which provides critical
mining industry,” asserts Silvander.
decision support for production
“There’s also a mix of different compa-
efficiency and safety. “They’re very
nies. Take, Ericsson: they’re a telecom-
prominent in the mining intelligence w w w.busi ne ssc hief. com
S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )
480+
Number of Business Sweden employees
2017
Year founded
53
Number of offices around the world
94
“THIS WAY OF WORKING TOGETHER WITH A GROUP, AS OPPOSED TO ONE VENDOR IS A VERY NEW CONCEPT, ESPECIALLY IN THE MINING INDUSTRY” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden
DECEMBER 2018
area and are developing tools for positioning and enabling real-time short-interval control,” highlights Silvander. Sentian Technologies has also played a key role in this ecosystem, standing as a company with a long background in AI. Additionally, Scania Mining, which Silvander says “provides fleet management and mine site optimisation by applying lean manufacturing principles” has gotten onboard
MINING
95
alongside SKF, which has “been in
is eyeing up further opportunities in
Canada for over 100 years and are
mining hubs like Australia and Chile.
experts in rotating machinery, reliability
“We have an ambition to go global,�
and offer advanced data analytics
he says brightly.
and predictive maintenance. Looking forward, Silvander is keen to include more suppliers in this ecosystem and
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PROCUREMENT TRANSFORMATION JOURNEY OF ANSALDO STS WRIT TEN BY
L AUR A MULL AN PRODUCED BY
RICHARD DURR ANT
DECEMBER 2018
S U P P LY C H A I N
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ANSALDO STS
In line with its parent company, Hitachi, Ansaldo has continued to deliver world-class transport services thanks in part to an innovative procurement transformation
F
aster, safer and more efficient: today’s communities are demanding more from their transportation systems and it seems that many
have found the answer when working with Ansaldo
Signalling and Transportation Systems (STS). Over the past decade, Ansaldo STS has continued to 98
make a lasting impression when designing and implementing railway signalling, automation and integrated transport systems for both metro networks and railway lines, and through its operations, has ensured that people can easily get from A to B. As a Hitachi Group company, Ansaldo STS has leveraged its international experience to help transform transport systems around the globe. This means that whether you’re in Italy or France, the US or India, Ansaldo STS has the expertise to help. In fact, today, the technology firm has designed and implemented solutions in around 28 countries, generating about USD$1.5bn in turnover. Now, as its global footprint expands further, the company has also transformed its procurement process to ensure that it can cater to its global outlook.
DECEMBER 2018
S U P P LY C H A I N
$1.5bn Approximate revenue
1853
Year founded
4,228
Approximate number of employees
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ANSALDO STS
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“ Our procurement team is fully involved from the beginning of the process and can lead the sourcing of each package” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS
DECEMBER 2018
S U P P LY C H A I N
This responsibility has partly fallen
therefore, a major part of our costs
into the capable hands of Filippo
comes from the external partners and
Fanfani, Vice President of Procurement.
suppliers. Recognising this, we have
Joining the firm in 2014, he says that
implemented a new strategy, manage-
for global companies like Ansaldo STS,
ment and organisation of our supply
having a best-in-class procurement
base. I would say that this is even more
function is more important than ever
important in a global environment where
before. “We are a global business: we
we have key projects across the globe.”
have our core business, such as sign-
With support from top management,
alling, where we design and produce
Ansaldo STS has undergone a restru-
our own products but on the other side,
cturing, creating a new procurement
we also offer turnkey solutions and act
organisation that deals with engineer-
as a technology integrator,” he explains.
ing, development, manufacturing, con-
“For this business, we create the main
struction and the projects through
contract on behalf of our customers and
supply chain planning organisation.
E X E C U T I V E P R OF IL E
Filippo Fanfani Mr. Filippo Fanfani has a multiyear industry background within automotive, industrial and rail businesses, cross functional experiences and a strong international exposure. As part of the Ansaldo STS Executive team Fanfani leads the global Procurement organization (1bn€ spend and about 90 team resources) with the aim to transform it into an effective strategic function. Process and People development are his forte, besides, sourcing strategies and operational initiatives. He believes in sustainable and reliable relationship with key supply partners to achieve progress.
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ANSALDO STS
This has helped to foster more robust
operations, moving towards a supply
and strategic sourcing process. “Our
chain and construction focused orga-
procurement team is fully involved
nisation spanning, procurement,
from the beginning of the process and
manufacturing, logistics, supply chain
can lead the sourcing of each package.
planning and construction.
It’s fundamental for the turnkey business
For Ansaldo STS, procurement is
so we can define the external cost of
organised in a global matrix structure
each project and maintain a sustain-
under Filippo Fanfani’s leadership.
able margin. I would say that negotia-
On one hand, roles are organised by
tion of cost and risk management are,
regions and on the other axle the global
for sure, two key aspects that they
commodities. This matrix responsibility
keep in consideration.” In order to be
provides the reasonable balance
even more effective today the compa-
between global efficiency and local
ny decided to restructure the global
effectiveness as well as a proper
102
DECEMBER 2018
S U P P LY C H A I N
CLICK TO WATCH : ‘ANSALDO STS STRATEGIC BUSINESS OVERVIEW’ 103 managerial control over the decisionmaking process. Moreover, with this procurement organisation the benefits are two-fold: the firm can not only negotiate tenders from the beginning of the process but it can also enter the global market with sound knowledge of the specific technologies and processes needed for the project. “It’s important for us to work alongside the business and to go to the market as soon as possible,” observes Fanfani. “Technology changes every day and our customers are looking for innovative tools, so it’s e uro pe .busi ne ssc hief. com
very important that we can go to the
“Leading the sourcing from the
market and understand what our part-
beginning of the bid, we understand
ners can provide to us from the offset.
the documents we have in our hand,
We need to lead the process.”
what we need to have shortly. We
Across its turnkey business, Ansaldo
definitely have to consider what are the
STS has to work closely with partners
constraints, the opportunities and the
to implement cutting-edge transport
supplier base we need to get on board.
technologies. Its supply chain organi-
There are several functions involved in
sation has, therefore, been invaluable:
the planning of the sourcing – providing
by working shoulder to shoulder with
data, documents and in general inputs
both customers and suppliers from the
during the sourcing process – and so it
offset, it’s allowed Ansaldo STS to lead
helps us lead that process respecting
the way and negotiate cost-efficient ten-
each function delegation of authorities
ders, without getting swept up by new
and get a proper match among techni-
waves of digitisation or time constraints.
cal contents, costs, prices and risks,”
DECEMBER 2018
S U P P LY C H A I N
“ It’s really important for us to be updated with the latest digital transformation. It’s not something to be considered ‘nice to have’, it’s mandatory” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS
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ANSALDO STS
adds Fanfani. “Thanks to this approach, we have a strong understanding of the specifications of our customers’ needs and we flow them down to our suppliers.” Supplier relationship management is a pressing concern for any supply chain professional and it is one which Ansaldo STS has tackled head-on. By working consistently with its partners and suppliers, creating lasting relationships has become second nature to the firm. “This continuous relationship 106
with our key suppliers is critical as well for our success in a global environment,” notes Fanfani. “As a buyer, you’re responsible for maintaining a strong relationship with your key suppliers. The balance between global and local interaction in our supply chain organisation also allows us to leverage the right partner who can deliver a costefficient product.” A digital enthusiast himself, Fanfani is keen to keep abreast of the latest technological innovations shaking up the sector. After the procurement organisation zeroed in on identifying the best practices and processes,
DECEMBER 2018
S U P P LY C H A I N
C OMPA N Y FA C T S
• Ansaldo STS is headquartered in Genoa, Italy, and has over 4,228 employees in 28 different countries.
107
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ANSALDO STS
108
“ I strongly believe that in a global environment like today which is becoming more and more digital, procurement also needs to be in line with that” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS
DECEMBER 2018
S U P P LY C H A I N
digitisation was seen as the next natural step. As a result, Ansaldo STS is currently in the process of implementing a new digital procurement platform. “This will help us streamline our processes and it will also give us a global tool where all procurement professionals can work during the sourcing process,” observes Fanfani. “I strongly believe that in a global environment like today, which is becoming more and more digital, procurement also needs to be in line with that. I would say that this is the first step for implementing further technologies in the future.” In today’s global market, Ansaldo STS may be facing stronger competition but Fanfani is confident that with its newfound global approach, the company is well up for the challenge. Leveraging the power and image of its parent group, Hitachi, it seems the only way for Ansaldo STS is onwards and upwards. “As a part of Hitachi, we can leverage their expertise and utilise the power we have behind us, particularly when it comes to technology. It’s really important for us to be updated with the latest digital transformation. It’s not something to be considered ‘nice to have’, it’s mandatory.”
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EMASA
110
Combining technology with purpose WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
LE WIS VAUGHAN
ENERGY
111
EMASA
Investing in new technologies in order to provide essential services to its citizens, EMASA remains a leader in the utilities market
O
ne of the first Spanish cities to have a company for the management of the water supply system in the 19th
century, Mรกlaga remains at the forefront of environmental innovation. Undertaking the 112
management of the integral water cycle in the city of Mรกlaga, Empresa Municipal Aguas de Mรกlaga (EMASA) treats water from detection of the necessary hydraulic resources from distribution, purification, sanitation, and supply, to the disposal of waste water or reuse of waste water. Once responsible for designing and implementing all the new information systems for the toll road between Mรกlaga and Marbella, Chief Information Officer, Pedro Galdรณn joined EMASA in a bid to unlock new opportunities and gain the ability to grow within a large public organisation. Responsible for 15 people, he explains that his role has evolved to one which is more focused on business, in order to drive further value through technology. DECEMBER 2018
ENERGY
113
€70mn Approximate revenue
1986
Year founded
425
Approximate number of employees
e uro pe .busi ne ssc hief. com
One solution. Any application. Only Nutanix delivers a single software OS that runs across clouds, making the boundaries between private, public and distributed clouds invisible. Nutanix solutions combine web-scale engineering with consumer-grade management to power any workload in multi-cloud environments.
Experience it Now
ENERGY
“For more than seven years,EMASA has been developing,promoting and implanting an intelligent reading system in our city” — Pedro Galdón, Chief Information Officer
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EMASA
116
“Technology is everywhere, but here
water. It is a treasure indispensable to
in EMASA it plays a key role. In fact,
all human activity,’ Galdón is keen to
we are the leading company in smart
stress the potential of new technologies,
metering in the Spanish water sector,”
where the company will gain the ability
he says. “For more than seven years,
to analyse big data and provide solutions
EMASA has been developing, promot-
to tackle global water shortages.
ing and implanting an intelligent reading
“We treat waste water in our facilities.
system in our city. Smart metering has
Purifying water, reusing it to irrigate
put us at the forefront of the sector at
and turn solid waste to solid fuel. The
a national level. We already have more
water we can’t reuse is pumped into
than 115,000 electronic meters installed
the city offshore. We are now starting
in Málaga.”
to use drones for inspection tasks,
Whilst the European Water Charter
where it is difficult for workers to reach
has stated that ‘there is no life without
or there is a high level of risk. I think in
DECEMBER 2018
ENERGY
117
Pedro Galdón Name Here
E EX XE EC CU UT T II V VE EP PR R OF OF IL IL E E
A Computer Engineer by aut background, MBA and Approx 100 words quam aut eaturiwith sequianquiasit, qui PhD from Malaga University, Pedro Galdon has conem workedquo in the IT dolupta cusdand enistium acienimi, offici field since 1993. His previous role as ITSundant Manager Autopista blaudi occumqui cone laborep ratur? asatrempe de del Sol led to the design and implementation for all new voluptu ribus, sequo omnisitem laut a dolut occulparum Information Systems for the new Tollderes Roadaliandit betweenharit, Málaga hillant quibus mi, voloreprovit ende and Marbella. net, offic temperro con experat. Cum faccum quati officiet In 2005 at ISLANDA, an Open Source Development Company peresti ncitia in restrum faccum quo el illuptam dolupta sited at the Technological Park of Málaga, Galdon’s role as erempor alitaquo tem secae vellant. Ta quid qui veliqui CTO sawditi himatibusa advance the company’s surrounding nobitius consediossit evel strategy ius des qui con ped technical resources, and aepernam implementing new systems quam, sedit, totatustevaluating dis nonsequ fugiti conestoand infrastructures. EMASA in 2006 as Technical tas everes id ut autemHeetjoined moluptius. Igenis soloribus accate Head, 2014. sendit,becoming que nos etCIO queinebit et omnih.
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EMASA
the near future all dangerous jobs will be undertaken by a robot or drone.” Previously, the company housed a traditional IT team suitable for the era in which its infrastructure was developed. However, upon bringing on board SAP technologies, EMASA faced a challenge in upgrading its outdated systems and looked towards gaining significant expertise. Working alongside Nutanix, the business has deployed a hyper-convergence system, but faced resistance from a number of large manufacturers. 118
“ We are now starting to use drones for inspection tasks, where it is difficult for workers to reach or there is a high level of risk” — Pedro Galdón, Chief Information Officer
DECEMBER 2018
ENERGY
CLICK TO WATCH : ‘YO GESTIONO MI AGUA NUEVA APP DE EMASA’ 119 “We still took this forward and embarked on this hyper-convergence adventure. Nutanix gave us an escalation in performance with a very simple management system. They put data as close as possible to where it is executed and I think that’s the key to improving traditional performance. It seems like a simple idea, but nobody had thought about it before.” Moving from traditional quality assurance to adopting lean methodologies, all parties have now become involved in EMASA’s new culture in eliminating waste and ensuring quality across every process designed, whilst enhancing the customer experience. All of its operations e uro pe .busi ne ssc hief. com
EMASA
C OMPA N Y FA C T S
• Málaga was one of the first Spanish cities to have a company for the management of the water supply system in the 19th century 120
• EMASA treats water from detection of the necessary hydraulic resources from distribution, purification, sanitation, and supply, to the disposal of waste water or reuse of waste water • Working alongside Nutanix, the business has deployed a hyper-convergence system • As drought continues to be a key challenge in Málaga, EMASA has sought to raise awareness and create campaigns on the ways its citizens can reduce water usage
DECEMBER 2018
€
ENERGY
“ We are the leading company in smart metering in the Spanish water sector” — Pedro Galdón, Chief Information Officer
121
will be further bolstered by the EMA-
In 2019, we are aiming to develop
SA’s Laboratories, which adhere to all
a new Virtual Office, which will
international standards.
become our flagship technology.”
Through the use of its support platform,
As drought continues to be a key
Virtual Office, customers have gained
challenge in Málaga, EMASA has
the ability to carry out a number of
sought to raise awareness and
processes 24 hours a day. It is also
create campaigns on the ways its
a key project which the company is
citizens can reduce water usage.
presently working to develop further.
However, Galdón notes that the
“For me, it is one of the most important
business should also further invest
things we can do for our customers.
in improving its present facilities. e uro pe .busi ne ssc hief. com
EMASA
“ EMASA is an advanced environmental management company and we want to make the citizens the aware of the importance of the dangerous of water scarcity” 122
— Pedro Galdón, Chief Information Officer
DECEMBER 2018
ENERGY
“EMASA is an advanced environmental management company and we want to make the citizens the aware of the importance of the dangers of water scarcity. What also makes EMASA different is our promotion of scientific research, cultural activities and assisting with the preservation of the environment,” he adds. “We are transforming EMASA in a technology company. We are facing the fourth revolution with data sensors, drones, devices, applications and more. “We have to be able to take advantage of all of these technologies. If we do that, we will transform EMASA into a more efficient, environmentally friendly and customer-oriented, public company. We will be the kind of public water company you would want your children to have.”
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123
Just in time to say goodbye.
Keeping you in the air. The best time to develop services for tomorrow’s technology is today. That’s why we’re doing that now — along with integrating new models, materials and technologies in our portfolio as quickly as possible. Our goal is to keep your aircraft off the ground, tomorrow as well as today. So let the future arrive: our services will be waiting. Talk to us. Lufthansa Technik AG, marketing.sales@lht.dlh.de Call us: +49-40-5070-5553
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