EUROPE EDITION MARCH 20 19 europe.businesschief.com
DATA-DRIVEN DIGITAL TRANSFORMATION
E X CL US I V E V IDE O
Transforming finance across the globe
Innovative, customer-driven, tech-led...
AXA’S MOVE TO THE CLOUD Global Program Director Ash Shah discusses the insurer’s technology transformation
Digital disruption in the telco space
City Focus
smartest cities in Europe
FRANKFURT The financial powerhouse
FOREWORD
W
elcome to the March edition of
magazine to discuss transformation
Business Chief Europe!
in their respective industries.
AXA is this month’s cover feature with exclusive video content as Global
Business Chief also looks at what
Program Director Ash Shah
Frankfurt has to offer. The city is
discusses the insurance giant’s
the largest financial sector in
move to the cloud, as it aims
the Eurozone, and is home to
to become an innovative,
Germany’s tallest
customer-driven, tech-
buildings, largest
led organisation.
airport, and biggest inner-city forest.
The CEO of Belgium’s BICS, Daniel Kurgan, tells us about global
Ash Shah, Global Program Director, AXA
customer trends and the
Additionally, the smartest cities on the continent are revealed –
operations the company has
from Oslo to London, these
underway to meet new demand. The
metropolises have updated their
business is embracing digitisation by
infrastructure and focused
extending its offerings and preparing
on sustainability.
for new technologies, such as 5G. Enjoy the issue! Companies such as AirMalta, Croda,
Sophie Chapman
Emmerson PLC, Hapimag, IBS
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Software, Siemens, Travelex, and Uniper also feature in this month’s e u r o p e . b u s i n e s s c h i e f. c o m
03
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CONTENTS
AXA’s Move to the Cloud: a customer-driven technology transformation
10 30 KEEPING UP WITH THE EVOLVING TELCO INDUSTRY
38 SOFT WARE ENABLING
5G
REINVENTING UPSKILLING FOR THE 4TH INDUSTRIAL REVOLUTION
48 60
72 City Focus
FRANKFURT
OPEN DATA ADDRESSING WORLD H U NGE R — SOLVING THE AGRICULTURAL CRISIS FOR A MORE SUSTAINABLE FUTURE
82
TOP 10 Smart cities in Europe
CONTENTS
96 Siemens
112
130
Uniper
Travelex
148 Air Malta
196 Hapimag
214 166
KTM Group
Croda
184
234
IBS Software
Emmerson PCL
10
MARCH 2019
TECHNOLOGY
AXA’s Move to the Cloud: a customer-driven technology transformation
WRIT TEN BY
OLIVIA MINNOCK PRODUCED BY
A LE X PAGE
e uro pe .busi ne ssc hief. com
11
AXA
Ash Shah, AXA Group’s Global Program Director for the insurance giant’s Move to the Cloud, discusses the technology transformation as part of AXA’s ambition to become a customer-driven, tech-led organisation
“W
hen we undertake a transformation, we do it on a truly global scale with technology at the forefront as one of the enablers,”
comments Ash Shah, Global Program Director of leading insurer AXA’s Move to the Cloud initiative. 12
This is no mean feat, with the insurer serving 105mn clients across a vast footprint of 62 countries. To aid its technology transformation, AXA has undergone a significant company-wide IT restructure. “We have an ambition to be an innovative, customer-driven, tech led company and we’ve enhanced and modified our IT organisation to support and drive that ambition,” Shah explains. “Technology has become more intrinsic in our business and it’s no longer just a support function – it’s the key enabler for us to continue to innovate and move forward as an organisation.”
‘INNOVATIVE, CUSTOMER DRIVEN, TECH LED’ As a composite insurer, AXA covers many lines of business including health, life, property and casualty insurance. The French multinational currently spans a mix of growth areas and established markets, MARCH 2019
TECHNOLOGY
13
e uro pe .busi ne ssc hief. com
From Inspiration
to Innovation
TECHNOLOGY
CLICK TO WATCH : AXA GLOBAL PROGRAM DIRECTOR ASH SHAH ON TRANSFORMATION ACROSS GEOGRAPHIES 15
and has a significant legacy of looking
standing – all aimed at promoting
after customers at those times when
innovation and collaboration and
they need it most. Shah, who assumed
showing, through colourful posters
his current role just six months ago, is
and games areas, that insurance is far
already a familiar face in Paris where
from an old-fashioned career choice.
AXA is headquartered. Counted among
AXA’s staff are adapting well to
its numerous locations is the spectacu-
the new working environment which so
lar new Java building which offers a
much investment and thought has gone
true reflection of AXA’s ambition to
into. Colleagues do not have a strict
modernise a business often seen as
dress code – with some stating this
traditional. The office itself boasts
makes them feel more valued for their
open space, natural light, and flexible
skills and output than their appearance
options allowing colleagues to work
– and have plenty of opportunities to
independently or as a group, sitting or
socialise by playing pool or enjoying e uro pe .busi ne ssc hief. com
Building an ecosystem? Connect the dots. “Your journey to cloud must navigate pitfalls and opportunities that are unique to your business. We support you in imagining and delivering your cloud journey and making it run�. Eric Meistermann, Deloitte Partner in charge of AXA Group
TECHNOLOGY
“ We foster a strong change management process where we make sure we communicate, evangelise and onboard our colleagues in all parts of the organisation” — Ash Shah, Global Program Director – Move to the Cloud, AXA
coffee together. Shah joins us at this new
We measure compliance, performance
Paris office having spent three days with
and KPIs at both a centralised level and
AXA’s Dubai Gulf business discussing
a local entity and business level,” says
the company’s transformation across
Shah. “It’s also important to understand
that region. “It’s pushing all parts of our
the various cultures AXA operates in
organisation into that journey and bring-
and the pace and size at which they can
ing them onboard. It takes time and effort
make changes.” For example, AXA’s
and engagement – but once you do that,
companies in growth markets will focus
you can see the end results. We’re moni-
on establishing a presence while
toring, and can see we’re making good
well–established entities might focus
progress now,” he enthuses.
on innovation to remain competitive.
In its ambition to become tech led, sectors and geographies with both
A GLOBAL, CUSTOMER-CENTRIC TRANSFORMATION
a strong global vision and local knowl-
Currently, one of AXA’s key areas of
edge. “Usually, we have a central team
development – and the element for
but we listen to the requirements and
which Shah is responsible – is its ‘Move
needs of our different business units and
to the Cloud’, whereby the business will
make sure they are a part of that journey.
come away from legacy technology
AXA is pushing technology across all
e uro pe .busi ne ssc hief. com
17
TECHNOLOGY
CLICK TO WATCH : GLOBAL PROGRAM DIRECTOR ASH SHAH TALKS THE IMPORTANCE OF PARTNERS AT AXA 19
and store and manage data on private
allows an organisation to innovate. “It
and public clouds. This is a key strategic
gives us business agility, flexibility and
initiative which AXA is taking on for two
speed to market which is much harder
key reasons. “One is that we want to
in traditional IT methods. In addition,
modernise and update our technology
the cloud enables the collaboration
infrastructure,” says Shah. “The second
that is so key to a global business. As
is that we really want to exploit new
we deploy something in one country,
technology innovation – such as artificial
we can replicate that quickly in multiple
intelligence (AI), chatbots and image
countries,” Shah explains. “We therefore
recognition – which we wouldn’t be
end up with a consistent product which
able to do with our existing systems
we can enhance and change – and those
and processes.”
changes can be rolled out across numer-
For Shah, and for AXA, a key feature of cloud technology is the speed at which it
ous entities and organisations far more quickly than in the past.” e uro pe .busi ne ssc hief. com
AXA
“ The relationship we build with our suppliers – and I would call them partners rather than suppliers – is very important to us” — Ash Shah, Global Program Director – Move to the Cloud, AXA
20
Why is AXA undertaking such a significant investment? “Firstly, it’s for
to be able to respond to this change in a customer-centric manner.”
customer experience. We deal with
Every technology investment AXA
customers through an omnichannel
makes involves extensive thought into
process: they need to have consistent
how it will impact the customer. “We
experience.” For example, customers
make sure there’s really a business
may wish to deal with a claim over the
driver and value for what we’re investing
phone and then switch to live chat.
and innovating in. We then start with
“We need to be able to receive data and
a proof of concept, idea and trial before
respond to it in all manners, shapes and
we really push something.” AXA’s cloud
forms. Customers today are expecting
program is a prime example of this. “We
a different experience of working with
have to build new features, new products
a global insurer,” Shah adds, citing
and new ideas onto the platforms.
omnichannel as a key driver. “We need
There we have the voice of the customer
MARCH 2019
TECHNOLOGY
CLICK TO WATCH : GLOBAL PROGRAM DIRECTOR ASH SHAH – HOW AXA MOVED TO THE CLOUD 21
to drive the demand and the prioritisa-
“We foster a strong change management
tion process. Then their voice is heard.
process where we make sure we
They drive the change agenda.”
communicate, evangelise and onboard our colleagues in all parts of the organi-
A TEAM EFFORT
sation,” says Shah. “That’s one of our
With the agenda driven by customers, it’s
key success factors in implementing
important that each and every member
a lasting change.”
of AXA’s 160,000-strong colleague base
This is not always easy given that AXA
is on board in order to promote the best
is dealing with new technologies and
service to every customer. Managing
working across a plethora of different
a significant change, and the shift in
locations, but Shah maintains that it’s
culture it brings, across such a mam-
possible with a combination of training
moth organisation is vital to make things
and open communication. This is not
work all the way to the end customer.
just looked at in terms of individual jobs, e uro pe .busi ne ssc hief. com
AXA
but in terms of the key part each employee plays in AXA’s journey as a global organisation. The transformation so far has not just been successful in terms of IT, but far beyond this, including the people and culture at the company. “We have an extensive change training program for all of our colleagues where we’re working extensively to make sure they are all aware of what the cloud journey is, what AXA is undertaking, and why. It’s also important the program has the sponsorship of our management committee, and it is discussed and agreed – which then helps cascade the information and messages 22
around our program.” AXA’s move to the cloud involves not just thousands of employees, but a network of strong partners too – and all must be aware of the company’s long-term vision. “We are not technical experts in all domains and areas we’re undertaking as part of our move to the
“ The cloud gives us business agility, flexibility and speed to market which is much harder in traditional IT methods” — Ash Shah, Global Program Director – Move to the Cloud, AXA MARCH 2019
23
cloud journey,” Shah admits. “So the
Other important delivery and consult-
relationship we build with our suppliers
ing partners include Capgemini and
– and I would call them partners rather
Deloitte who are also supporting AXA
than suppliers – is very important to
on this journey.
us.” AXA has worked with some of
Shah makes it very clear that AXA
the biggest names in tech as part of
isn’t just buying off-the-shelf solutions
maintaining a secure yet efficient cloud
but is growing alongside each of its
transformation – from IBM with its
key partners in a sustainable relation-
private cloud provider to AWS and
ship. “We’re undertaking a multiyear
Microsoft Azure for its public cloud
commitment. They’re on this journey
journey. Innovation projects have also
with us.” Another element the above
been supported by Google Cloud.
names have in common is famously e uro pe .busi ne ssc hief. com
AXA
24
MARCH 2019
TECHNOLOGY
secure service – something which is paramount for any organisation, but especially within the insurance industry. “A few years ago, the reason people didn’t move to the cloud was security. Now, organisations are actually moving to the cloud due to the security provided by the likes of IBM and Microsoft Azure. They have some of the best security experts out there. Their business is built on secure, trustable platforms – they would be out of business if their platforms were not secure.” Handling the kind of sensitive data AXA deals with on a daily basis means security is something Shah and his team don’t take lightly. “We need to ensure we have robust processes on our side. We are selective with what we put into the cloud, especially from a compliance and regulatory purpose. Cybersecurity is one of the key drivers of this program,” Shah explains, adding that the global insurance behemoth has a strong legacy to maintain. “Our brand value is particularly important – when you’re buying insurance, you’re also buying a trusted brand.”
A FUTURE IN THE CLOUD Following AXA’s success on its journey to the cloud thus far, Shah believes that other organisations will follow suit – or risk being left in the dust. “Cloud technology is going to e uro pe .busi ne ssc hief. com
25
AXA
AXA GROUP
€98.5bn Approximate revenue
1982 Year founded 166,000 The approximate 26
number of AXA employees
significantly disrupt the insurance
sations, such as AXA, concerned
sector, and the insurance value chain,”
about the rise of fintech and in-
he predicts. “Cloud technologies and
surtech startups – but Shah believes
Insuretech partners will look at
these shouldn’t be perceived as
different parts of the value chain and
a threat. “Parts of our value chain will
come up with innovative ideas about
continue to be disrupted by cloud
how they can accelerate a certain
partners, innovators or insurtech
process – such as claim notification or
companies who will come in with
risk modelling.”
solutions and ideas which don’t have
Across the finance and insurance
the resistance to change that larger
spheres, the rise of technology
organisations have to deal with,”
leaves many more traditional organi-
he comments.
MARCH 2019
TECHNOLOGY
gies through our AXA Next organisation.” Along Shah’s journey to cloud transformation across the globe, the change will need to be continuously driven at all levels. “Hopefully we’re getting to a point where this communication and buy-in is becoming one of our key success factors. We measure that through KPIs. We’re at the point where we’re starting to become successful in promoting our program and moving forward with the migration– but we still have a long way to go.” Indeed, Shah cites the pace at which his team has accelerated buy-in across AXA. “In the last three of four months, we’ve seen more momentum than we saw in 15 months. That in itself is quite rewarding. We’ve seen the adoption and deployHowever, an insurer like AXA which
ment of lots of our applications on the
is prepared to innovate and stay at the
cloud. Momentum is building and it
forefront of new technologies can
will just get better and better.”
only stand to benefit. “We need to embrace this as an organisation, look at our value chain, and see where we can utilise insurtech organisations to streamline, to be more efficient, more innovative, faster, and to deliver the change our customers are looking for. We work with and invest in startups where we can leverage their technoloe uro pe .busi ne ssc hief. com
27
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LEADERSHIP
30
KEEPING UP WITH THE EVOLVING TELCO INDUSTRY BICS CEO Daniel Kurgan explains how the global telecommunications company keeps up with customer trends and demand,striving to improve quality and add value WRITTEN BY
MARCH 2019
SOPHIE CHAPM AN
31
e uro pe .busi ne ssc hief. com
LEADERSHIP
W
ith a core mantra of “think global”, BICS has increasingly embraced digitisation to meet the demands
of its evolving customer base. In recent years,
the telecommunications provider has expanded its operations outside of its domestic Belgian market, with offices spanning across the Americas, Africa, and Asia. “We are a telco for a telco. Our main business is to carry international telecommunications traffic for all the telecommunications companies and communications service providers,” informs Daniel Kurgan, CEO of BICS. The firm offers 32
mission-critical services to customers by carrying their voice, messaging, and homing traffic, enabling their customers’ users to make international calls, for example. The company’s network consists of fibre optics and submarine cables, and over the past 20 years, BICS’ customer portfolio has grown from mobile operators to cloud communication providers and telco software firms such as Skype. The Belgian business has also extended its offerings, ultimately seeking to pass information through its network to deliver more intelligent services to customers. “We deliver a whole set of value-added services such as fraud prevention and remediation, advanced reporting, traffic simulation tools like Steering of Roaming, marketing tools like Welcome MARCH 2019
“If you want to be relevant you need to excel in your very core traditional business. You need to build the services and the processes and adapt your way of working for the digital customer” — Daniel Kurgan, CEO of BICS
33
SMS, or data roaming control like bill shock prevention,” Kurgan adds. The private-joint company belongs to three telcos – Proximus, Swisscom, and MTN. Until 2005, BICS was a division of Proximus, which remains the controlling shareholder. As a member of the firm’s Board of Directors, Kurgan has worked between Proximus, formerly Belgacom, and BICS for over 20 years. The CEO claims to have always worked within international global environments with a focus on technology. “I’m a bit of e uro pe .busi ne ssc hief. com
LEADERSHIP
We have created hundreds of jobs which I think is an achievement for all of us. We have also grown our profit five-fold and we’ve really managed to grow the business,” Kurgan notes. As the company expanded, it began to invest in new operations. At the end of 2017, BICS completed its acquisition of Telesign, the California-based leader in two-factor authentication through SMS. “Together with Telesign, we are creating an endto-end communication platform as a service. They have a huge range of customers who are dominating the market and work with 20 out of the top
34
25 internet brands.” “However, the telecoms sector is fast a company veteran – I was at Proximus
changing – everyone can see the
when BICS became a new division and
industry has developed so much in the
I grew from there. I’ve got a lot of
past five years, with the growth of mobile
experience working and being surround-
internet and social networks,” Kurgan
ed by brilliant engineers and pretty
adds. “With this changing market and
complex technology environments and
business model, our biggest challenge
I guess that has helped me to run a telco,
so far is finding the best way to stay
which is a pretty complex business,”
ahead and be a pioneer in technology
Kurgan reveals.
evolution.” With the introduction of
Kurgan is proud of how far the com-
|new technologies, the CEO claims its
pany has come since he joined and
strategic purpose is to bridge the
BICS became its own division. “We are
telecom and digital worlds. With the
proud to say that since the inception of
amount of voice and messaging traffic
the company, the headcount has tripled.
generated by companies continuing
MARCH 2019
CLICK TO WATCH : ‘BICS – CONNECTING THE WORLD, ENABLING VALUE’ 35
to grow as a result of digital evolution,
says. “On the other hand, we are already
BICS enables firms to connect with
a very technically advanced company:
their end-user.
if you compare us with an average
When asked what digital transforma-
company in the industry, we are much
tion means to BICS, Kurger revealed
more digitalised and we have a Chief
that there was more than one meaning.
Digital Officer (CDO) to ensure this.”
“On the one hand, it is the trigger for
With the industry’s evolution, BICS is
a wider business shift, whereby tra-
having to adapt to new customer trends.
ditional telcos are struggling to grow
“Currently it’s all about cost containment,
amid newer competing platforms. Now,
cost containment, cost containment,”
like every company, we are impacted by
Kurgan states. “Customer demands
this transformation because we have to
are also becoming more complex. Ten
adapt our internal processes and the
years ago, we would just sell the console,
way we interact with our customers,” he
now customers ask for more. There is e uro pe .busi ne ssc hief. com
LEADERSHIP
36
“ The cornerstone of the transformation of the company is to keep excelling in the legacy while coping with the demand from digital” — Daniel Kurgan, CEO of BICS MARCH 2019
a constant fight to quality and to more value for money.” Despite growing demand, the company is able to continue to offer its expertise and excellence in service delivery. The business prides itself of the quality of the services it offers and its customer relations. “Everybody knows that we are not the cheapest on the market, but the quality of the service is our differentiator. If our customers have a problem, we try to resolve any issues
37
with the expertise we have in-house.
and technology giants, BICS will adapt
That’s how we address customer de-
and integrate the technology into its
mands and try to make a difference in
services, enabling its customers to use
the market today.”
it and roam with it. “So, that remains the
“If you want to be relevant you need to
very key challenge,” Kurgan says. “The
excel in your very core traditional busi-
cornerstone of the transformation of
ness. You need to build the services
the company is to uphold the legacy
and the processes and adapt your way
of the company whilst coping with the
of working for the digital customer,”
demand from digital.”
Kurgan explains. As technologies such as 5G are developed by manufacturers e uro pe .busi ne ssc hief. com
TECHNOLOGY
38
SOFTWARE ENABLING 5G Folke Rosengard, Head of Business Development, Nokia Software, explores how 5G serves as more than just an answer to the burgeoning IoT and digitalisation landscape WRITTEN BY
MARCH 2019
FOLK E ROSENGARD
39
e uro pe .busi ne ssc hief. com
TECHNOLOGY
W
e at Nokia believe that we are in front of one of the biggest upsides in the whole telco industry in a
long time, thanks to the digitalisation trend
and the Internet of Things (IoT). IoT will add a massive amount of new connections; and the digitalisation trend creates a growing demand for a multitude of diverse connections including use cases with high bandwidth, low latency and ultrahigh reliability. 5G is the ideal solution to respond to this demand, however 5G is much more than simply a new Radio Access Network (RAN) 40
generation. It comes with sophisticated software that affects all parts of the network, including how service providers operate the network and how they offer profitable and compelling services. It is a whole new business system that enables service providers to respond to the massive demand fuelled by the IoT and digitalisation trend in a profitable way. 5G requires a tight connection between network, operations and business with all the systems and processes working together to deliver and monetise the 5G use cases for consumers and enterprises. Software is the key for realising 5G capabilities in an efficient way. Technical capabilities such as dynamic slicing of mobile networks and a serviceMARCH 2019
41
“ 5G is the ideal solution to respond to this demand, however 5G is much more than simply a new Radio Access Network (RAN) generation” — Folke Rosengard, Head of Business Development, Nokia Software
e uro pe .busi ne ssc hief. com
TECHNOLOGY
“ We believe ‘Cloud Native software’ is a fundamental principle for software of the 5G era” — Folke Rosengard, Head of Business Development, Nokia Software
based architecture to enable multiple and diverse use case requirements based on agile, flexible and real-time digital fabric are critical for telcos to maximise and exploit 5G capabilities. Network providers must have a strong digital fabric that’s built on applications with five key characteristics:
01. INTELLIGENT Analytics and machine learning in everything are critical to manage an ever-growing volume of data. Great experiences are the ones that are personal, contextual and fast. These
42
rely on the ability to augment human intelligence with machine learning and analytics. They use the data to provide a 360-degree view of the experience and decide what actions will produce the best outcomes.
02. AUTOMATED Manual processes are too slow to handle the big data explosion. As such, intelligence workflows and bots should push automation to extremes to ensure we can drive insights to action with efficiency and speed using closedloop fundamentals.
MARCH 2019
CLICK TO WATCH : ‘5G IN ACTION’ 43
03. SECURE
05. OPEN
With more of our lives online, customers
It’s unlikely that service providers will rely
must know they can trust their provid-
solely on one infrastructure vendor or
ers to handle their data. The new digital
partner, one revenue-sharing relation-
fabric must include security in its
ship or service. Applications must be
foundation to provide customers with
multi-vendor, open and lightweight -
the highest level of protection in the
and the complexity of the network must
digital world.
be removed or abstracted. 5G will enable a range of new use
04. CLOUD-NATIVE
cases with a variety of specific require-
To respond with agility at a better cost
ments. To support each use case in an
point, software needs to be built for the
optimal way, security capabilities will
cloud, from both the technological and
need to be more flexible. For example,
consumption-model perspectives.
security mechanisms used for ultra-low
e uro pe .busi ne ssc hief. com
TECHNOLOGY
44
latency, mission-critical applications may
We believe “Cloud Native software�
not be suitable for massive IoT deploy-
is a fundamental principle for software
ments where devices are inexpensive
for the 5G era. There are many benefits
sensors that have a very limited energy
of cloud native software for telcos,
budget and transmit data only occa-
including more efficient use of cloud
sionally. Another driver for 5G security
resources, operational simplicity and
is the changing ecosystem. Long-Term
horizontal scalability. Proven by
Evolution (LTE) networks are dominated
massive scale companies such as
by large monolithic deployments―each
Google, Twitter and Netflix over years
controlled by a single network operator
of use, horizontal scaling or adding
that owns the network infrastructure
more containerised applications within
while also providing all network
a cluster, enables providers to provision
services. In contrast, 5G networks may
the processing capacity they need to
be deployed by a number of special-
process data quickly.
ised stakeholders providing end-user 5G network services.
MARCH 2019
Managing and reducing the complexity, while keeping operation costs under
45
control, can only be achieved through
Today, automation is popping up
injecting intelligence and automation
almost everywhere in the network,
into the transformation process. As 5G
and “closed loops” are considered
extends beyond radio technologies,
silver bullets for killing complexity.
deep into the cloud, across mobile and
A recent study by Nokia Bell Labs
transport layers, it will be paramount
concluded that closed-loop automa-
to combine data from RAN and non-
tion can only work in combination with
RAN sources and introduce machine
a new architecture and – even more
learning-enabled automation to create
important – an implementation master
algorithms for use cases that operate
plan. The full benefit of automation can
across all these data sources.
only be realised if it’s done in concert. e uro pe .busi ne ssc hief. com
TECHNOLOGY
Small benefits can be – and are being – realised with tactical, domain-specific automations, but those benefits can only be maximised if harmonised and orchestrated across all domains. As non-telco companies digitalise their own product offerings, new opportunities will emerge for telcos and service providers. With the new network characteristics of 5G and cloud resources sitting close to customers, these companies will be in a position to offer capabilities no 46
IT cloud service provider can match. Software helps communication service providers to reinvent themselves as digital service providers. A key in this transformation is to recognise the need for far greater agility with frictionless business and
“ With the new network characteristics of 5G and cloud resources sitting close to customers, these companies will be in a position to offer capabilities no IT cloud service provider can match” — Folke Rosengard, Head of Business Development, Nokia Software
MARCH 2019
47
operational adaptability. In other words,
product management, customer experi-
digital service providers need to act in
ence management, network and service
and capitalise on windows of digital
operations, care and monetisation.
time. To operate in digital time, service providers need a holistic and real-time view of what’s happening with business and operations to determine the next best action to take – this applies for all areas of operations from marketing to e uro pe .busi ne ssc hief. com
PEOPLE
48
REINVENTING UPSKILLING FOR THE FOURTH INDUSTRIAL REVOLUTION With Industry 4.0 underway, Nick Lazaridis, President of EMEA for HP Inc., explains how ultimately it’s the people behind the screens and machines who enable digital transformation NICK LAZARIDIS, PRESIDENT OF EMEA FOR HP INC WRITTEN BY
MARCH 2019
49
e uro pe .busi ne ssc hief. com
PEOPLE
50
T
oday’s world moves at a mind-
steps to build the organisation of the
blowing rate, and it’s only going
future. More than any that have come
to get faster. Emerging technolo-
before, the Fourth Industrial Revolution
gies like IoT, 5G, artificial intelligence and
holds the opportunity for businesses
3D printing have heralded the fourth ind-
everywhere to transform their impact
ustrial revolution and proven their pote-
on employees and, by extension, society.
ntial to change the status quo. But it’s
Looking back, the advent of new
down to us as business leaders to tran-
technologies has often been associ-
sform our workforces and equip them
ated with resistance and fear because
to make the most of this opportunity.
of the impact it might have on work-
There is a need for real innovation
forces and ‘business as usual’. The
and change across every market and
reality is that these new technologies
sector. It’s no longer just about gaining
are not a threat to work, but an oppo-
a competitive advantage, but taking
rtunity to automate the routine, repetitive
MARCH 2019
51
or low value tasks and apply valuable human resources to more creative and complex challenges. Just as the PC changed the way we work, as well as the skills needed to get the job done, we are entering a new chapter of change that will surpass those before it in size, scale and scope. The Fourth Industrial Revolution has the potential to create new, technologically-driven value en masse - but getting there calls for a human-centric approach and investment in people. It will look different to every business and
“ The Fourth Industrial Revolution has the potential to create new, technologically-driven value en masse – but getting there calls for a human-centric approach and investment in people” — Nick Lazaridis, President of EMEA for HP Inc
e uro pe .busi ne ssc hief. com
PEOPLE
“ A truly diverse representation of backgrounds, experiences and opinions helps challenge the status quo and allow new ways of thinking” 52
— Nick Lazaridis, President of EMEA for HP Inc
the extent of reinvention will vary, but there are some commonalities as to how we can build the skills of our organisations for the future.
MANY HANDS MAKE BRIGHT WORK The obvious business case for diversity is that it is key to attracting the best talent and engaging employees. But it goes further than equal representation and fair opportunities. A truly diverse representation of backgrounds, experiences and opinions helps challenge the status quo and allow new ways of thinking. Real diversity of thought is becoming essential in the global economy, not just to attract the best talent but to integrate broader cultural understandings and add fresh perspectives and processes. When you pair this with inclusive workplace culture, people feel more comfortable in bringing their true selves to work and their ideas to the table.
LEARN AS IF YOU WILL WORK FOREVER A real investment in learning and development is crucial to recruiting and developing a highly-skilled, future-ready workforce. Within the MARCH 2019
CLICK TO WATCH : ‘HP DEVICE AS A SERVICE (DAAS) PROACTIVE MANAGEMENT’ 53 technology sector, there’s an urgent need to diversify the STEM talent pipeline and bring new thinking to the fields of science that will shape our tomorrow. They are crucial cornerstones of the Fourth Industrial Revolution – and it’s only by ensuring fair opportunities and representation that we can consider them to be truly innovative. The opposite is also true, however. Across all industries, there is a growing focus on ‘soft’ and social skills, particularly around communication and emotional intelligence. These are the skills e uro pe .busi ne ssc hief. com
PEOPLE
that bolster creative thinking and complex problem-solving – the concepts that translate into a blueprint for services and solutions of the future. eLearning platforms and self-paced programmes have changed the way we can acquire and develop skills at work, but in order to engage employees in a shared mission those competencies must be underpinned by a culture of collaboration, knowledge and growth.
LEADING THE WAY 54
So how do you lead an organisation to transformation? Transform the leadership of the organisation. Put simply, business leaders must embody the values of the change they want to make. HP itself was reinvented as a multibillion-dollar start-up, and we’re seeing our strategy pay off – but would be nothing without the strong and motivated teams behind the business. I’ve always tried to stick to my leadership principles to help create and foster that culture. Managing cycles of innovation and regular organisational change are part of the job, but more substantial transformation and reinvention need vision, MARCH 2019
55
role models and commitment to successfully bring a workforce on the journey. Transforming an organisation and building skills requires everyone to be open to change. Leadership teams need to lead the charge with wholehearted commitment and investment in their development, to set the best example for their organisation. If we are to believe that the only constant is change, then there will always be a new skills gap to tackle. Build a foundation for an organisae uro pe .busi ne ssc hief. com
PEOPLE
56
“ This may well be a technologydriven revolution, but ultimately it is the people behind the screens and machines who make the change” — Nick Lazaridis, President of EMEA for HP Inc
MARCH 2019
tion that’s open to change, committed to learning and continuously improving, and not afraid to fail along the way, and you will build the basis for tomorrow’s industry. This may well be a technology-driven revolution, but ultimately it is the people behind the screens and machines who make the change. As someone who has spent their career reinventing in a rapidly changing world, I’ve seen how it’s possible to transform an organisation with positive impact for people and planet. Technology might change the way things are done, but it is squarely within our power as the leaders of industry to think creatively and solve the challenges of tomorrow.
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S U S TA I N A B I L I T Y
60
OPEN DATA ADDRESSING WORLD H U NGE R — SOLVING THE AGRICULTURAL CRISIS FOR A MORE SUSTAINABLE FUTURE WRITTEN BY
ANDRÉ LAPERRIÈRE, EXECUTIVE DIRECTOR, GODAN
MARCH 2019
61
e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
62
T
oday, hunger is bringing suffering to over 795 million people across the
economically undeveloped nation. Â The threat of an agricultural crisis is
globe. Those affected currently do
very much a reality across the globe.
not have access to enough food to live
Crippling costs, poor weather condi-
sustainably. Although a majority of this
tions and disease outbreaks have hit
population are based in the world’s
landscapes, farmers and businesses
most vulnerable regions, this does not
hard over the years and the potential
contain the issue within borders as
impacts can be tenfold. The UK for
food security issues are also residing
example, has suffered from record
in some of the most developed nations.
high temperatures, reported outbreaks
The UK is reportedly one of the most
of foot and mouth disease and is also
food insecure nations in the European
in the midst of an uncertain trading
Union, and it is by no means an
future as Brexit looms. In Africa, where
MARCH 2019
“ O PEN DATA CAN PL AY A CRITICAL RO L E IN HEL PING TO ACHIEV E THE SUSTAINABL E D EV ELO PM ENT G OAL S PRO PO SED BY THE UNITED NATIO NS” — André Laperrière, Executive Director, GODAN
water conservation issues, malnutrition
example of these issues. The conti-
and hunger are still pertinent, climate and
nent’s farming industries have been
weather are one of the principal causes.
suffering due to the lack of shared
The agricultural industry is a volatile one,
information and data, most small-scale
from either ends of the globe. We are
isolated farmers in rural African
continuing to experience the struggle
communities are missing out on new
to meet the growing demands of the
and improved methods and best
consumer, to combat the fluctuation in
practices of farming and agricultural
supply, the instability of markets and
processes. This issue, married with the
the lack of investment in the agriculture
water contamination crisis affecting
industry in many nations.
sub-Saharan Africa - where only 16%
The agricultural crises in countries across Africa present a notable
of the population have access to clean water and have no access to critical e uro pe .busi ne ssc hief. com
63
S U S TA I N A B I L I T Y
information relating to water quality or weather data -demonstrates how there is the significant need for access to Open Data to help bring about an end to the crisis, save lives and create a more sustainable future. Open Data has developed alongside technological advancements throughout the years. However, its potential impact on the agricultural space has rarely been considered a key solution to solving the food crisis. The potential for the use of Open Data to combat food issues can and should no longer
64
be ignored; not only because of the relevant historical data and the potential to increase production it can provide, but its usefulness in monitoring water supplies, anticipating changes in the weather and also sharing crucial information across borders so that nations can learn best practices from each other and prosper. Through the use of satellite data, remote sensing and mapping, farmers, businesses and consumers in the agricultural industry can harness the most relevant and useful information to improve and adapt practices, make better decisions and ensure sustainMARCH 2019
CLICK TO WATCH : ‘ANDRÉ LAPERRIERE AT SWAT4HCLS CONFERENCE, ANTWERP, 3-6 DECEMBER 2018’ 65
“T H E R E I S S T I L L A LO NG WAY TO GO BE F O R E OPE N DATA ACCESS IS GLOBALLY ACCEPTED AND UTILISED” — André Laperrière, Executive Director, GODAN ability. Increasing access will trigger
Esoko, presents a prime example of
innovations that will bring both
the benefits of Open-Data access to
agriculture and nutrition to the next,
the industry by illustrating how mobile
higher level of impact, improving
phone technology can be integral to
efficiency, yields, competitiveness and
allowing farmers and their buyers to
ultimately increasing food security
access Open Data to obtain informa-
across the world.
tion to improve access to markets and
The Ghana-based organisation,
encourage fairer pricing based on e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
66
shared feedback. By utilising Open
and thousands of families. Those using
Data to collect data on a national scale,
the technology can both collect and
the technology solution TradeNet was
input data regarding the selling price of
born, enabling farmers to share and
basic commodities, such as the prices
access data through SMS with
of seeds and fertilizers and send daily
customers and other farmers. This
updates to farmers through SMS. Thus,
data is obtained through existing
the farmers can determine their input
channels such as weather data
costs, increasing their selling profit by
channels and other basic technology,
utilising the information made available
to enable a self-sustainable business
to them. Now, more than 350,000
model combining data, farmers,
farmers have joined the Esoko platform
customers, markets/ dealers and
in 10 countries in Africa and it contin-
phone companies on an open system
ues to expand.
to benefit the livelihoods of hundreds MARCH 2019
In the West, countries such as The
“FOO D SEC URIT Y ISSU E S ARE AL SO RESID IN G IN SO ME O F T H E MO S T D EV ELO P ED N AT IONS ” — André Laperrière, Executive Director, GODAN
67
Netherlands are also benefitting from
In the south, the ‘digital divide’ has
the offerings of Open Data as more
played a huge role in agricultural crises,
web applications aiming to improve
as large industrialised farms are
accessibility to Open Data are unlock-
becoming more cost efficient and
ing valuable data related to historical
competitive, while the small traditional
weather patterns and food consump-
farmers are gradually bringing
tion data, accessible to those involved
themselves out of the markets. This is
in agriculture and the environment.
due to the large industrial farms/
Similar to the organisation in Ghana,
wealthy countries and businesses that
these applications are also user-gener-
already make efficient use of data to
ated, allowing farmers and those in the
improve techniques, products, market
agricultural sector to input data for all
access, rapidly increasing their
participants to see, allowing best
competitiveness in the world markets.
practices to be shared and adapted.
Open Data can play a critical role in e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
helping to achieve the Sustainable Development Goals proposed by the United Nations. Open Data can help foster economic growth and job creation, improve efficiency and effectiveness of public services by allowing the cross fertilization and synergy of different industries, sectors and governments leading to new practices, new equipment and new technologies that in turn, lead to better yields and the stimulation of private and public economies. 68
This will in turn, improve government transparency, citizen participation and accountability through the sharing of data across communities and borders. Â However, there is still a long way to go before Open Data access is globally accepted and utilised. This drive and determination for it to be a success needs to be welcomed by respective governments and organisations across the globe and pushed to the top of the agenda. With the correct approach and implementation methods in place, Open Data can have a high economic and social return on investment for MARCH 2019
“ N OW, MO RE THAN 350,000 FARMER S HAVE JO IN ED THE ESO KO PLATFO RM IN 10 C O UN TRIES IN AFRICA” — André Laperrière, Executive Director, GODAN
69
countries all over the globe and in all stages of development. Areas in Africa, Latin America, Asia and Europe have already demonstrated how increased access to data can help develop economies and farming practices, taking a significant step forward to achieving sustainability and solving the hunger crisis.
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
CITY FOCUS
72
City Focus
FRANK Home to Germany’s largest airport, tallest buildings and widest inner-city forest, Frankfurt offers the biggest and best of German culture WRITTEN BY
MARCH 2019
SOPHIE CHAPMAN
KFURT e uro pe .busi ne ssc hief. com
73
CITY FOCUS | FRANKFURT
74
F
rankfurt, often referred to as
olis, and a traditional streetcar called
Frankfurt am Main, is the
the Ebbelwei-Express can take you on
largest financial centre in the
a tour of what was once the home of
Eurozone – placing it as Germany’s
the famous writer Johann Wolfgang
financial hub. As well as offering a busi-
von Goethe.
ness-focused skyline, Frankfurt is also home to beautiful architecture such as
GERMANY’S TALLEST VILLAGE
the Kaiserdom and the Paulskirche.
The city offers all ten of Germany’s
The nation’s largest inner-city forest
tallest buildings, with the largest,
can also be found south of the metrop-
Commerzbank Tower, standing at
MARCH 2019
‘The district has derived the portmanteau of Mainhatten, which combines the city’s Main river and the comparison to New York City’s economic centre’
75
850ft high. In 1997, at the time of its
nickname of Mainhatten, which allu-
completion, the tower held the title of
des to the city’s Main river and New
the continent’s tallest building, until in
York City’s economic centre, Manhat-
2003 when The Shard was built in the
tan. Some of Germany and Europe’s
UK’s capital city. Locals often refer to
largest companies reside in Mainhat-
Frankfurt as “the tallest village in
ten, with a significant number operating
Germany” with the top 10 buildings
in the banking and financial sectors.
ranging from 545.6ft to 850ft, mostly
Commerzbank, Deutsche Bank, and
located in the central business dis-
DZ Bank have all located their head-
trict. The district has also gained the
quarters in the city, whilst Germany e uro pe .busi ne ssc hief. com
CITY FOCUS | FRANKFURT
and Europe have also located their central banks there.
DEUTSCHE BANK Deutsche Bank is the nation’s largest bank by total assets and the 15th largest bank globally. The firm operates in 58 markets across the world. The financial institution was established on three pillars: the Private & Commercial Bank, the Corporate & Investment Bank, and Asset Management. With its operations spanning commercial and 76
investment banking, the company is classified as a universal bank. The firm’s investment-focused operations mean it’s often described as a member of the Bulge Bracket, a phrase used to describe the largest and most profitable multinational investment banks in the world. Despite being founded in Berlin in 1870, the institution opened its first branch in Frankfurt in 1886 and relocated its headquarters to the city in 1957. The firm is currently based in the Deutsche Bank Twin Towers, often referred to as Debit and Credit, in the Bankenviertel district. The towers were built between 1979 and 1984 and were originally designed for Hyatt Hotel MARCH 2019
‘The central bank for the euro is based in Frankfurt’s Ostend. The institution was established in 1998 by the Treaty of Amsterdam, which solidified the location through the treaty’ 77
Group, who cancelled plans for the buildings. The structure underwent a four-year renovation between 2007 and 2011, making the towers more environmentally friendly and fire safe.
EUROPEAN CENTRAL BANK The central bank for the euro is based in Frankfurt’s Ostend. The institution was established in 1998 by the Treaty of Amsterdam, which solidified the location in the city through the treaty. The bank changed its location in 2014 to a new e uro pe .busi ne ssc hief. com
CITY FOCUS | FRANKFURT
office designed by Coop Himmelbau,
iary of the Swiss food and drink firm, and
a Vienna-based architect. Construction
T-Systems, the IT services and consult-
for the site, which was to replace the
ing company, have also settled in the city.
Eurotower, began in 2008. With the high
“Frankfurt/Main is also home to many key
demand for bankers in the city, around
target industries, such as the creative
a quarter of Frankfurt’s citizens are
industries, IT and telecommunications,
now expats.
biotechnology and life science, logistics and industrial production,” claims Frank-
78
THERE’S MORE TO FRANKFURT THAN BANKING
furt Economic Development GmbH.
Despite banking being a very prominent
FRANKFURT AM MAIN AIRPORT
industry in Frankfurt, the city is also
With Frankfurt’s business-heavy life-
home to other major industry leaders.
style, the metropolis attracts a lot of
Nestle Deutschland, the German subsid-
visitors. The city is home to Germa-
MARCH 2019
CLICK TO WATCH : ‘URBAN LIFESTYLE – #VISITFRANKFURT’ 79 ny’s largest airport, which also ranks as the fourth largest in Europe. The building hosts 75,000 members of staff and last year 69.5mn passengers used the airport. 512,000 flights travelled through Frankfurt am Main Airport in 2018 and the site is also responsible for 2.2mn tonnes of cargo. In regards to passengers, the 2,300hectare site is the third largest on the continent and the second largest for cargo. The airport is the main hub for Deutsche Lufthansa AG, the largest carrier in Germany. When including Lufthansa’s subsidiaries, the airline e uro pe .busi ne ssc hief. com
CITY FOCUS | FRANKFURT
‘ As well as the largest buildings and airport, located towards the south of the city is Germany’s widest inner-city forest’ 80
MARCH 2019
is also the largest in Europe. The transport company, Fraport AG Frankfurt Airport Services Worldwide, operates the airport.
GREENERY As well as the largest buildings and airport, located towards the south of the city is Germany’s widest inner-city forest. The woods were acquired from Kaiser Karl IV by the city in 1372. Stadtwald Frankfurt, or the Frankfurt City Forest, is the largest communal forest in Germany. Sitting on almost 5,000 hectares of land, the forest is located in the Schwanheim, Niederrad, Sachsenhausen, Oberrad, and Flughafen districts, and covers a third of the city’s territory. Within the greenery are numerous rest huts, playgrounds, and ponds, attracting both tourists and residents. Paths running throughout the space create a 450km network combined.
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81
T O P 10
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MARCH 2019
TOP 10 Smart cities in Europe The European Commission defines a smart city as “a place where traditional networks and services are made more efficient with the use of digital and telecommunication technologies for the benefit of its inhabitants and business�. Here is a list of the top 10 smartest cities in Europe, according to the IESE Cities in Motion Index (CIMI) WRITTEN BY
SOPHIE CHAPMAN
e uro pe .busi ne ssc hief. com
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T O P 10
10
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Oslo NORWAY The capital city of Norway is currently executing the Smart Oslo initiative that aims to deliver “a smarter, greener, more inclusive and creative city for all citizens.” The strategy is targeting connectivity, sustainability, and innovation. Secure communication technology and Internet of Things (IoT) solutions are being integrated into the city’s core operations – such as governance, citizens’ services, energy management, waste management, water management, urban mobility, education, industry development, welfare and healthcare and other community services. Norway is a leading nation in the electrical vehicle industry, and its capital is reflecting this by testing electric buses.
www.oslo.kommune.no MARCH 2019
09
85
Helsinki FINLAND Helsinki is focusing on digitalising industries and creating user-focused services – Finland’s capital wants to ensure its region keeps its title as a world leader in utilising public information. The city won joint first position in the European Capital of Smart Tourism Competition in 2018. Helsinki has also been commended for its startups, digital transportation services, and smart city government. “Helsinki’s vision is to be the most functional city in the world. The success in many comparisons shows that we are going in the right direction. The utilisation of digitalisation is a significant success factor for Helsinki,” stated the city’s Mayor, Jan Vapaavuori.
www.helsinkismart.fi e uro pe .busi ne ssc hief. com
T O P 10
08
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Vienna AUSTRIA “Smart City Wien has set the goal to successfully overcome the challenges of the 21st century,” claims Vienna’s smart city strategy. The initiative has taken a long-term, holistic approach to transforming the Austrian city – by 2050, Vienna wants to ensure the best quality of life and minimise consumption and resources, as well as sitting in the top five research and innovation hubs in Europe. The city is focusing on buildings, digital, education, energy, environment, health, innovation, location, mobility, and social affairs.
www.smartcity.wien.gv.at
MARCH 2019
07
87
Stockholm SWEDEN On 3 April 2017, Stockholm’s council implemented a digitisation strategy to increase smart city adoption. The Swedish city argues that the increased rate of people leaving rural areas for cities should encourage technology advancements to increase opportunities. “Anything that can be digitalised will be digitalised,” claims the City of Stockholm. Hundreds of projects are currently underway, including smart bins, which use technology powered by solar to report data, smart lighting, and traffic control.
www.international.stockholm.se
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Copenhagen DENMARK “The smart city Copenhagen is a living laboratory for testing smart technologies to handle the challenges of urbanisation and climate change,” states Copenhagen Capacity. The greater district of Denmark’s capital has collaborated with academia, the public sector, and industry to test and develop projects. Copenhagen’s startups are attracting investments into the city, with around 250 firms contributing to smart city activity.
www.copcap.com
MARCH 2019
05
89
Berlin GERMANY Berlin Partner für Wirtschaft und Technologie GmbH regards the city as a “laboratory for efficient infrastructure, informational networking, sustainable mobility and creativity.” Germany’s capital aims to anticipate trends and use ICT to introduce efficient solutions, focusing on the energy, transport, mobility, logistics, healthcare, and photonics sectors. The Smart City Berlin Network was established to promote the city’s strategy, and features over 100 firms and institutes.
www.berlin-partner.de
e uro pe .busi ne ssc hief. com
T O P 10
04
90
Amsterdam NETHERLANDS Featuring in 10th position in the global ranking, Amsterdam has implemented several projects under its strategy. Circular Amsterdam has established a framework for innovation processes by increasing knowledge in the circular economy and understanding the transition from a linear to a circular economy. City-zen focuses on clean energies such as wind, sun, biomass, and geothermal. These renewables will be integrated into buildings and systems through retrofitting, smart heating, and smart grids
www.amsterdamsmartcity.com
MARCH 2019
03
91
Reykjavík ICELAND The Icelandic capital has incorporated technology into its transportation to improve efficiency and usability. The Straetó app, which connects to the bus system, was launched in 2014 and has been downloaded 85,000 times. The city has also introduced an online consultation forum and a geothermal energy company. “The future of Reykjavík is now […] Let’s harness the knowledge at the Reykjavík Smart City Conference in Harpa and evaluate the opportunities ahead, everything from smart lamp-posts to self-driving cars,” states Smart City Reykjavík.
www.reykjaviksmartcity.is
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02 Paris FRANCE Mairie de Paris has created its strategy through three major objectives – The Open City, The Connected City, and The Sustainable City. The city aims to deal with issues such as urbanisation, resource scarcity, and climate change whilst rein92
venting Paris. France wants to reduce its greenhouse gas emissions in its capital city, as well as create more digital inclusion through technologies such as IoT. The firm Vincent Callebaut Architectures has released plans to introduce plant-embedded smart architecture, known as Paris 2050.
www.api-site-cdn.paris.fr
MARCH 2019
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01 London UNITED KINGDOM The UK’s capital city was ranked in second position globally, behind New York. Smarter London Together was launched by the city’s mayor in order to make London ‘the smartest city in the world’. The city’s boroughs and services will collaborate using tech94
nology. The strategy outlines five missions: design, data sharing, connectivity, skills, and collaboration. The London Office for Data Analytics (LODA) programme will launch under the initiative to increase data sharing and collaboration.
www.london.gov.uk
MARCH 2019
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MARCH 2019
TECHNOLOGY
JOINTLY DRIVING DIGITAL TRANSFORMATION UNDER SAUDI ARABIA’S VISION 2030 WRITTEN BY
LAURA MULLAN PRODUCED BY
JAMES PEPPER
e u r o p e . b u s i n e s s c h i e f. c o m
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SIEMENS
CTO AT SIEMENS SAUDI ARABIA, RAINER SPEH, EXPLAINS HOW THE FIRM IS GEARING UP FOR VISION 2030 WITH ITS IOT PLATFORM, MINDSPHERE
O
ur lives are more connected than ever before. In fact, Gartner reports that consumers own on average four Internet of Things (IoT) devices
which communicate with the cloud whilst, globally, an 98
estimated 127 new devices connect to the internet every second. This cutting-edge technology is not exclusive to consumer goods; it is also upending industries across the globe. In sectors such as aviation, energy and manufacturing, connected IoT devices have quickly become the norm. But with reams of data and information at our fingertips, are we truly getting value from this information? This is where Siemens has entered the fray with its latest innovative solution. Recognising that only a tiny fraction of industrial data is used and intelligently analysed, the technology giant has created MindSphere – a cloud-based, open IoT operating system which it likens to a ‘swiss army knife’ for IoT. It allows businesses to connect products, plants, systems and machines, equipping firms with the concrete application data that they can analyse and draw insights from.
MARCH 2019
TECHNOLOGY
99
e u r o p e . b u s i n e s s c h i e f. c o m
SIEMENS
“ M INDSPHERE ISN’T JUST A PLATFORM, IT’S ABOUT CO-CREATION” — Rainer Speh, CTO at Siemens Saudi Arabia
As the first CTO of Siemens Saudi Arabia, Prof. Dr Rainer Speh says that MindSphere is much more than a system, it is a new way of thinking. “MindSphere isn’t just a platform, it’s about co-creation. With our MindSphere Application Centre, we work alongside our customers to address their specific operational needs and improve their processes,” he explains. “Together, we discover their pain points and co-create solutions that fit their needs.” Today, Siemens
100
MARCH 2019
TECHNOLOGY
CLICK TO WATCH : ‘WHAT IS MINDSPHERE?’ 101 has 20 MindSphere Application
one roof, Speh believes that the firm
Centres serving 50 locations in 17
is driving the co-creation of digital
countries. These centres employ
solutions together with customers.
around 900 data specialists and
With Industrie 4.0 being a reality,
engineers and focus on the specific
many businesses see digitalisation as
needs of a sector. In the Saudi capital
an opportunity to drive productivity,
of Riyadh, Siemens’ MindSphere
efficiency, speed and quality in their
Application Centre is able to offer
operations. Siemens and its network of
digital solutions spanning several areas
partners are co-creating tailor-made
including ‘Industrie 4.0’, smart infra-
applications to suit industrial custom-
structure, smart cities, agriculture
ers. “When you’re getting information
including vertical farming, energy,
in real time, it’s important to have the
hydrocarbon industries and cyberse-
right tools to analyse and interpret this
curity. By bringing digital experts,
data,” Speh explains. “This is where
domain experts and customers under
data analytics, artificial intelligence (AI) e u r o p e . b u s i n e s s c h i e f. c o m
Introduction This is a Company wholly-Owned by the Saudi Electricity Company. It was Established on 1/1/2012, with a Structure that includes Five main Activities: Operations & Control, Maintenance, Planning, Engineering, and Technical Services.
Our Vision
To be among the ranks of leading international companies in electricity transmission by adopting the latest standards, systems and technologies.
Our Mission
Electricity transmission with high reliability and economic efficiency in a way that achieves optimal use of resources and supports sustainable development of the national economy.
Finance Terms Equity: 4.51
Asset: 37.42
Billion USD
Revenue 2.87 Billion USD
Transmission Asset data 1070 Substations
3,359
Transformers
Billion USD
Net Income:
0.51
Billion USD
409,999 Transformers Capacity (MVA)
80,817 Length of Lines (km)
71,000 Fiber Optic Cable (km)
EBIDTA: 2.26
Billion USD
Strategic Initiatives ASSET MANAGEMENT: National Grid SA intends to achieve the best Asset Management Performance per ISO 55000.
How to apply for Qualification?
SMART GRID: National Grid SA works on digitalization & Realization of modern network.
PROJECT MANAGEMENT OFFICE (PMO): National Grid SA aims to manage the project In efficient and effective manner.
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TECHNOLOGY
and machine learning adds tremendous value. At the end of the day, it’s about drawing conclusions from this data. By using this data, we can monitor a whole plant or do predictive maintenance down to a single device. This is where we need to combine Siemens’ expertise with that of the client.” Saudi Arabia is in the midst of a visionary transformation. With its eyes set on Vision 2030, the Kingdom is aiming to diversify its economy away
“ TOGETHER, WE DISCOVER THEIR PAIN POINTS AND THEN CO-CREATE SOLUTIONS THAT PERFECTLY FIT THEIR NEEDS” — Rainer Speh, CTO at Siemens Saudi Arabia
103 E XE CU T I VE PRO FI LE
Prof. Dr. Rainer M. Speh is Chief Technology Officer (CTO) of Siemens Ltd. headquartered in Riyadh, Kingdom of Saudi Arabia since 1 February, 2015. Before that he worked in the Infrastructure & Cities Sector as well as in the Business Unit Power Plant Controls of Siemens as their CTO for more than 15 years. From 1985 to 1999, he held several technical positions in the industry in Germany. He received his Professorship from the Technical University Kaiserslautern, Germany, in 2014 and is lecturing since 1996. He earned his PhD from the Technical University of Darmstadt in 1985, where he also studied Electrical Power Engineering from 1975 — 1980. Prof. Speh is the current Past President of the Power Engineering Society (ETG) within the Association for Electrical, Electronic & Information Technologies (VDE) of Germany. e u r o p e . b u s i n e s s c h i e f. c o m
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TECHNOLOGY
Rainer Speh welcomes MoMRA Minister to Siemens booth @KSASmartCities Conference 2017
105 from oil and establish globally competi-
economic and social development of
tive industries in fields such as renew-
Saudi Arabia for nearly 100 years, with
able energy, manufacturing, healthcare
offices in Riyadh, Jeddah, Dammam,
and smart cities. Speh believes that
Al-Khobar, Yanbu and Jubail. With this
Siemens is playing a key role in this
local expertise combined with its
Vision. “As part of Vision 2030, the
innovative MindSphere platform, Speh
Kingdom aims to diversify and establish
believes the firm is set to take this
new industries. It’s not just about
one step further.
diversifying local industry; it’s about
Just as digitalisation has turned
becoming a major exporter too,” says
books into e-books and music into
Speh. “There is no way around this
mp3 files, it has also allowed us to
without Industrie 4.0. This is what the
create digital copies of physical
Kingdom hopes to achieve, and this is
industrial assets. Known as ‘digital
what Siemens can deliver.” Indeed,
twins’, many companies are looking
Siemens has contributed to the
to keep pace with Industrie 4.0 by e u r o p e . b u s i n e s s c h i e f. c o m
SIEMENS
106
creating a real-time replica of their assets. This can help firms identify defects or show how they could improve operations and drive revenue. “If you design a new operation you can simulate it and optimise it with the help of IT,� adds Speh, noting how Siemens not only has MindSphere to offer but that it is also a market leader in areas such as automation and product lifecycle management (PLM). With this range of industrial expertise and its cutting-edge MindSphere platform, Speh believes the opportuniMARCH 2019
TECHNOLOGY
ties for Saudi industry are limitless. Take the energy market, for example. According to Vision 2030, the country’s energy consumption will increase drastically by 2030. The National Renewable Energy Program aims to substantially increase the share of renewable energy in the total energy mix, targeting the generation of 27.3 GW of renewable energy by 2023 and 58.7 GW by 2030. To meet this growing demand, Siemens offers a range of renewable energy solutions, from wind turbines to lithium
SIDF, MCIT, MAC Workshop 2018
ion battery storage. Additionally, Speh highlights how the MindSphere IoT system monitors, analyses and optimises grids for grid operators and utilities. “Vision 2030 is also about energy efficiency, another area where Siemens has strong IoT capabilities,” Speh says. “We can also offer digital and practical solutions like more efficient electrical motors. Additionally, whether you want to remotely monitor your power plant, chemical plant, food and beverage industry, you name it – this is where MindSphere can come into play.” Renewable energy is just one of the main sectors found in the Kingdom’s blueprint for 2030. “The country also aims to have three Saudi cities e u r o p e . b u s i n e s s c h i e f. c o m
107
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recognised in the top-ranked 100 cities in the world,” explains Speh. Saudi Arabia is already an urban nation with 82% of its citizens living in cities and so it will have to tackle issues such as transportation, energy use, air quality and more. Indeed, the UN forecasts that 70% of the world’s population will be living in cities by 2050, so in order to have healthier, more liveable and
+ 200 countries / regions
where Siemens operate MARCH 2019
relaxed lives, those cities will have to become more efficient – and smarter. Siemens is well-versed in Smart City development and it believes that IoT, and indeed MindSphere, could help to
TECHNOLOGY
CLICK TO WATCH : ‘ANALYTICS ON MINDSPHERE’ 109 transform urban life and infrastructure.
six lines with 67 Inspiro metro trains, an
“We are building air quality measure-
electrification system, and signaling
ment tools, but we’re also addressing
and communication equipment for fully
traffic jams and implementing variable
automated, driverless operation.
speed controls.” A transportation
Running on either public or private
system is the lifeblood of any city and
clouds, Speh also points to how the
it’s certainly been a key area of focus
Platform-as-a-Service (PaaS) is “easy
for Saudi Arabia. Riyadh has seen its
to deploy” and “less effort to maintain”
population double to more than
because of its cloud-based nature.
6 million inhabitants since 1990, and to
Nevertheless, at the MindSphere
address traffic congestion, it is working
Application Centre, it’s clear that it’s
on the world’s largest metro project
not about state-of-the-art technology
with a total route length of 175km.
as much as it is about state-of-the-art
Siemens has played a leading role in
thinking. Recognising that business
the metro project, equipping two of the
leaders know their organisations’ blind e u r o p e . b u s i n e s s c h i e f. c o m
SIEMENS
COMPAN Y FAC TS
• Siemens has 20 MindSphere Application Centres spanning 17 countries. • By 2030, Saudi Arabia aims to generate almost 60GW of renewable energy.
110
• By 2030, Saudi Arabia aims to have three cities recognised in the top-ranked 100 cities in the world.
spots, bottlenecks and headaches best, “collaboration” and “co-creation” are words that best encapsulate the ethos behind the centre. “We sit down with clients and identify their pain
performance, maximise energy
points. They’re always different, and
efficiency and, ultimately, contribute to
there is always a potential to improve,”
Vision 2030. “It’s really about fostering
observes Speh. “Time-wise, effort-wise,
strong relationships,” adds Speh,
you name it – we’re offering change
“We have an ecosystem of around 200
management and helping them
companies now supporting us.”
become digital companies.” Through
It seems that Vision 2030 has offered
its centres, Siemens offers a space
Saudi businesses a fresh slate to
to co-design applications which aim
reshape their operations and sharpen
to optimise processes, speed up
their digital capabilities. This has
MARCH 2019
TECHNOLOGY
World’s largest gas turbine First “Made in KSA” at Siemens Dammam Energy Hub
111
encouraged companies to embark on digital transformation journeys, promote localisation, and nurture a more diversified economy. It’s an ambitious roadmap ahead, but with its MindSphere Application Centre, Siemens wants to co-create a better future with the Kingdom.
Riyadh Metro – the world’s largest metro project being executed
e u r o p e . b u s i n e s s c h i e f. c o m
112
DIGITAL TRANSFORMATION AT UNIPER: A KEY PLAYER IN THE ENERGY FIELD BECOMING DATA DRIVEN WRIT TEN BY
L AUR A MULL AN PRODUCED BY
LE WIS VAUGHAN
MARCH 2019
TECHNOLOGY
113
e uro pe .busi ne ssc hief. com
UNIPER
Embarking on a root-andbranch digital transformation, energy behemoth Uniper is showcasing the true power of data
W
ith about 36GW of generating capacity, Uniper has earned its stripes as one of the world’s largest global power genera-
tors. The Düsseldorf-headquartered firm was founded in 2016 after it carved out its own path 114
from E.ON and since then, it has grown to become a global powerhouse in the energy space, expanding its operations across 40 countries and attracting 12,000 employees to its doors. Technology has obviously played a vital role in this rapid ascension and, more specifically, Uniper’s data analytics plan has been a real tour de force. When it first hashed out its digital roadmap Uniper set itself an impressive goal: to become a more data driven company. This may seem like a straightforward task – that is, if you don’t take into account the scale of Uniper’s operations. The company not only generates power, but it also procures, stores, transports and supplies commodities such as natural gas, LNG and coal, as well as energy-related products. With this in mind, Uniper has reams and reams of data at MARCH 2019
TECHNOLOGY
8.2 bcm Gas storage capacity
2016
Year founded
12,000 Approximate number of employees
e uro pe .busi ne ssc hief. com
115
UNIPER
its disposal – but how to draw real value from this was another challenge it needed to tackle. The problem with data analytics, particularly at this magnitude, is that it’s often isolated and difficult to utilise enterprise wide. “Whether it’s power plants or gas storage, these sorts of assets are actually quite digitised already,” muses Dr. Stephan van Aaken, VP responsible for Digital Transformation of the Asset Business at Uniper. “Nowadays you can hardly run a power plant without sensors or the industrial Internet of Things (IIoT) but none of
116
these are perfectly utilised. Often information is siloed and organised in different places which means the whole organisation can’t reach its optimum capability.” There are many forward-thinking questions facing today’s utility and power giants. How much coal or gas do they E X ECU T I VE P RO FI LE
Dr. Stephan van Aaken Dr. Stephan van Aaken is Vice President of Asset IT, Architecture & Optimisation. His previous roles include Head of Asset Information and Head of Asset Power Market Risk. He graduated with an Engineering Degree from the RWTH Aachen.
MARCH 2019
TECHNOLOGY
CLICK TO WATCH : ‘UNIPER: NEW PERSPECTIVES ON ENERGY’ 117 need to produce today and in the future? Is the market going to pivot in a completely different direction? How can they maximise profit? These queries are daunting yet necessary, and by offering evidenced-based predictions data holds some of the answers. Yet, before you can draw any insights from data, it has to be organised. As such, Uniper sought to standardise the way it collected and organised data, which van Aaken aptly likens to “cleaning up the kitchen before you can actually start to cook your meal”.
“ Employees really bought into the technology because they could see it was really making their lives easier” — Dr. Stephan van Aaken, VP responsible for the Asset Digitalisation program e uro pe .busi ne ssc hief. com
UNIPER
118
Wanting to break down its data silos, the firm set about the mammoth task of reshaping its architecture. “We started to think about how we can drive value and money from our data at an enterprise scale,” explains Rene Greiner, VP of Data Integration. “From the first moment, it became clear we needed one fundamental thing: a ‘single point of truth’ whereby we can let data flow from one domain to the other.” To this end, Uniper worked closely with an intricate ecosystem of partners to create a cutting-edge data analytics MARCH 2019
TECHNOLOGY
platform. Over the past several years,
succeed,” Greiner affirms. Similarly,
the energy giant teamed up with
he praises Tableau’s “best in class
Tableau and Talend to integrate more
visual analytics capabilities” noting that
than 120 internal and external sources
it “perfectly supports Uniper’s digitisa-
into a Snowflake central data lake in
tion journey.”
the Microsoft Azure Cloud. Greiner
Embarking on a root-and-branch
speaks warmly of the strong partner-
transformation is no easy feat, but
ships Uniper has formed with Snow-
developing strong industry ties has
flake and Talend, highlighting how “it’s
helped Uniper sidestep any pitfalls.
different than a traditional partnership”.
This has not only applied to the way
“We’re very close to their network
the firm has overhauled its software
and in terms of knowledge sharing I’d
but can be seen in the hardware side
say we’ve created a very open-minded
of things too. “DXC Technology is
culture,” he says. “If we have a problem
really our backbone from an infra-
or a question, we can immediately get
structure point of view,” explains
in touch with them to solve it.” It’s this
Greiner. “We have a cloud first stra-
same ability to go the extra mile that
tegy but some parts you can’t put
led Uniper to adopt OSIsoft’s PI System
in the cloud and that’s where DXC
software. “They don’t want to just close
Technology comes in. They’re not
a deal and run off – they want to see us
just providing us with technology
E XE CU T I VE PRO FI LE
Rene Greiner Rene Greiner is Vice President Data Integration at Uniper. Prior to this, he had worked as Vice President Head of Information Management, Head of End of Day Reporting & Transformation Programme Manager and Head of Energy Economic Planning & Transformation Programme Manager.
e uro pe .busi ne ssc h ief. com
119
DXC Technology is the world’s leading independent, end-to-end IT Services company. We guide clients on their digital transformation journeys, multiply their capabilities, and help them harness the power of innovation to thrive on change.
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Uniper’s Digital Journey When did the collaboration between DXC Technology and Uniper start? The collaboration started eight years ago in the context of one of the largest IT outsourcing deals at that time — E.ON and HP. Since then we’ve established a trustful collaboration. After the separation from E.ON three years ago, Uniper continued to work with DXC Technology (DXC) to establish an IT landscape independent from E.ON and to enhance Uniper’s digital strategy. How did DXC help Uniper shape their digital journey? Uniper’s market environment faces a lot of disruption — for example, decarbonization, decentralization and digitalization. To stay competitive and secure its position as a market leader, the company decided to focus on the digital transformation and manage the change. Uniper saw the benefit of collaborating with a key partner like DXC, to use our professional knowledge about what “digital” means and to get guidance on their digital journey. How did this collaboration evolve? DXC’s performance in ENVISION workshops with the Uniper leadership team played a key role in getting started. The ENVISION team looked at how the company was adapting to the new era of digitalization. Together they analyzed their current technologies, operating model and culture. This served as a basis for defining strategic options, developing a digital blueprint and helping to navigate the change process. DXC also ran deep-dive meetings with Uniper and Leading Edge Forum. DXC’s Leading Edge Forum is a global research and thought leadership program dedicated to helping clients reimagine their organizations and leadership for a tech-driven future. It serves as a strategic touchpoint to challenge CXO teams and help them win in the 21st century.
A very important milestone was our Silicon Valley tour. This was organized and conducted by DXC to help Uniper’s leadership better understand the value of partnerships, ecosystems and outside-in thinking. DXC introduced Uniper to several startups and the corporate innovation platform Plug and Play. This contact turned out to be a starting point for a fruitful cooperation between Uniper and Plug and Play Energy Hub. What are the benefits of DXC’s approach? As business and IT become inseparable, virtually every aspect of work and the modern firm will need to be reimagined. This creates exciting new opportunities, as “digital” is a business-led transformation. DXC’s industry-leading strategic partner ecosystem and forward-thinking approach result in a precise roadmap — connecting business with IT. This opens up business innovation for securing a leading market position. How has DXC helped Uniper to enable its digital transformation, and what is the outlook? Uniper has used DXC’s Digital Transformation Center to develop and implement key solutions. Uniper established its own Digital Lab based on DXC’s digital development framework and agile principles. The DXC team has deployed Uniper’s new Digital Workplace, which is designed to enable enhanced collaboration and new ways of working for Uniper. DXC’s Security experts also helped Uniper embrace cloud technologies and implement DevOps capabilities. The experts have helped set up new identity and access management services that enable Uniper to manage identity across the enterprise from a digital perspective. Uniper is also using platforms like ServiceNow to enhance the end-user experience. With the help of DXC, Uniper is deploying digital solutions that will lead to new business models and new ways of working in the future.
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TECHNOLOGY
“ Our partners don’t want to just close a deal and run off – they want to see us succeed” — Rene Greiner, VP of Data Integration 123
though; they’re also supporting us as
highlights how the platform is empow-
a technology advisor.”
ering the workforce by giving them
Working with these industry leaders,
more input and control. “We’ve seen
Uniper is already reaping the fruits of
that this platform is bringing the data
its labour. Thanks to its data analytics
and people closer together,” he says.
platform, the company can supply data
“In the past, when you wanted to analyse
10 times faster and 10 times cheaper.
data you were kind of stuck. You needed
“In almost every process use case, we
to talk to IT professionals, set up a big
can also ‘free up’ people from data
project and then maybe six months
collection and processing,” Greiner
later you had the data you needed. This
says. “Because the platform is supp-
platform turned this around. It’s changed
orted by cloud technology, we can
our way of working significantly.” Speed
even reduce the cost of storing and
is another key advantage underlined by
preparing our data.” Van Aaken also
the pair. “In the past when we wanted e uro pe .busi ne ssc hief. com
Empower people with data.
Achieve Digital Transformation success.
Today, data drives our world. The challenge is to get the data we need, at the right time, to the right people, in the right format. Our passion is to help you transform your operational data into rich, real-time insights for reducing costs, increasing productivity and improving asset performance. Over 1,000 leading utilities, including companies like E.On, RWE, Uniper and, TSCNET, rely on our software, the PI System, to get the most out of their businesses. We believe people with data can transform their world.
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TECHNOLOGY
to integrate data it was an intensive, long and expensive process,” Greiner adds. “Today, we are able to do it within days if not hours. This drives value as you have more time to dig into the data and gain insight.” Demand in the utility and power market fluctuates daily. As you can imagine, a colder winter season will see more people turning on their heating for longer spells, whilst a heatwave could see a spike in air conditioning use. By using predictive data analytics, Uniper plans to use its portfolio, safely, to its utmost capability. “A major driver of the profit-
“A major driver of the profitability of your portfolio is, of course, how you manage your assets” — Dr. Stephan van Aaken, VP responsible for the Asset Digitalisation program Combining data about how a com-
ability of your portfolio is, of course,
ponent was run with predictions about
how you manage your assets,” explains
the future energy market, Uniper can
van Aaken, noting that when the firm is
now forecast how power plants will run
planning to invest and maintain its assets,
in the future and when they will need to
it is doing so on a portfolio basis rather
undergo maintenance. Van Aaken likens
than looking at individual power plant
this to maintaining a car, noting: “You
sites. “We have a strategy for our power
could change the tyres of a car every
plant portfolio and the maintenance of
two years and you would probably be
our components,” he continues. “These
safe, but what if half of the time the car
components are stressed differently
is parked and you’re only driving short
according to how you operate your
distances within the city? Changing the
power plant, and that obviously depends
tyres every two years would be a waste
on the market and the strategy of the
and you wouldn’t be using up the life-
traders. Now, for each component, we
time of the components.” On the other
can collect data about how it is operating
hand, he adds: “What if the car suddenly
through our digitisation strategy.”
needs to drive longer distances the e uro pe .busi ne ssc hief. com
125
UNIPER
126
MARCH 2019
TECHNOLOGY
next year? Then you’d have to change the tyres more frequently. In power plants you have a similar system – you need to ensure that it’s well maintained.” By being able to see how changes in the market will impact its portfolio, this resourceful strategy is helping Uniper keep a close eye on its maintenance budget and capital expenditure. This digital transformation journey has no finish line, and van Aaken and Greiner are proud of what Uniper has achieved so far. For the business, it’s not just about technical advancements: Van Aaken points out how a vital piece of this transformation involved creating a culture shift and enabling the workforce. “In the end, one of the biggest challenges involved is around enabling the people,” he says. “In my lifetime, technology has developed more quickly than people can follow – it’s a game changer. It also means that technology changes quicker than people’s mindsets. We have to take care to ensure that people are ready to take on this journey because the people have the actual knowledge. If you lose them, then even your greatest product won’t help you.” This is perhaps best exemplified by Uniper’s hydro business, where workers now use mobile devices (which are linked to SAP Plant Maintenance) for daily maintenance operations. Working across different power stations, these e uro pe .busi ne ssc hief. com
127
UNIPER
workers often used pen and paper
the development of the app,” says van
when conducting surveys. However,
Aaken. “They really bought into the
this caused problems: it was laborious,
technology because they could see it
susceptible to human error, and ineffi-
was really making their life easier. This
cient. To change this, Uniper developed
strategy also focuses on the benefits
a seemingly simple app, where emplo-
for the people.”
yees could send their notes directly
When it comes to digital disruption,
to the SAP PM tool. “It’s interesting
Uniper is keen not to slow momentum.
because we included the workers in
The world of technology is unpredict-
128
MARCH 2019
TECHNOLOGY
able but over the coming years, one
one knows what is set to come in the
thing is certain: Uniper will work hard
future, but by preparing our teams and
to ensure that it maintains its position
our organisation, we’re well equipped
as a digitally savvy energy leader. “We
to take it on.”
want to carry on with this journey,” adds Greiner. “We need to make digital part of our DNA. We need to take our digitised legacy and move towards becoming a more digital business. No
129
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130
TRAVELEX PUTTING PEOPLE AT THE CENTRE OF DIGITAL DISRUPTION WRIT TEN BY
OLIVIA MINNOCK PRODUCED BY
JA MES PEPPER
MARCH 2019
FINTECH
131
e uro pe .busi ne ssc hief. com
T R AV E L E X
132
Travelex’s Global IT Director Leonardo Tantari discusses the foreign exchange business’ technology transformation journey across a vast, rapidly changing landscape rom tourists paying for meals
the world of foreign exchange and
to multinational corporations
money on the move. In order to do so,
completing significant cross–
the FX giant is placing customer experi-
border transactions, Travelex has been
ence front and centre of a significant
there every step of the way for over 140
ongoing transformation – both in terms
years when it comes to foreign currency
of technology and people, which Global
exchange. Having progressed from
IT Director Leonardo Tantari says go
travellers’ cheques to digital payment
hand in hand.
F
platforms, the company can now be
Tantari joined the organisation in late
found in 1,200 Bureau de Change
2017, and has been leading the charge
outlets across over 100 airports in 27
in its digital transformation ever since.
countries. Now employing over 9,500
Previously working at Boots, and prior
people, Travelex is keen to remain at
to that Experian, the IT Director is
the fore of the changes encompassing
keenly aware of the challenges and
MARCH 2019
FINTECH
133
opportunities facing any organisation
an internal communications drive which
when it comes to a technology trans-
Tantari says is vital to managing the
formation journey, and has applied
changes and culture shift involved in
this in the financial services sphere
the company’s journey.
to develop Travelex’s instore, online,
“We’ve had a successful year in
mobile and ATM channels and solutions.
terms of delivery, from a development
Citing 2018 as a “fantastic year”, Tantari
perspective but also from a support-
spoke to us from Travelex’s Head Office
ability perspective,” says Tantari. “It’s
in Kings Cross where the previous day
been fantastic. We introduced single
he’d been recording a “five minutes
points of contact globally, with two
with” Q and A video for the company’s
employees winning awards at their
intranet. This, alongside various blogs
regional Diamond Balls held in January.
and newsletters, will be shared with
These were given in recognition of the
Travelex employees globally as part of
support they provided to their respece uro pe .busi ne ssc hief. com
WE GET SCALE. Since your business takes you everywhere, we’re everywhere too. With international hubs in key regions, CDW now offers operations across the globe. Partnering with us for your international needs can help you reach your goals and reduce the risk, complexity and cost that come with procuring, deploying and integrating technology. By combining local knowledge with years of experience in multinational logistics, CDW can deliver consistent, service-driven solutions across the globe while making international IT management simple. “Travelex is a truly global company and we need partners who can operate in the same geographies and deliver our solutions alongside us. Partners who have an extensive global reach, like CDW, help minimise the volume of suppliers we have to deal with – which in turn makes vendor management more efficient and also helps drive maximum value from any global deals.” Leonardo Tantari, Global IT Director, Travelex
uk.cdw.com | 020 7791 6000
T R AV E L E X
tive regions in 2018. We have brought
to automation, always with operation-
a tremendous amount of transparency
al efficiency and the ideal customer
so we are now in a fantastic position
experience front of mind. “One of the
where we can provide the right informa-
key activities we embarked on is cloud
tion to stakeholders.” Following on from
transformation – it brings us tremendous
this success, Travelex looks to the future
agility in the way we can respond to our
with excitement, and technology plays
customers and partners, as well as
a key role in its vision. “We have to
bringing significant savings.” This agility
ensure we have the right tech and the
has been instrumental in Travelex’s
right people to support the running
recent partnership with digital gifting
of the business,” Tantari explains.
platform, Swych, to introduce Travelex Pay, a unique service within leading
136
DRIVEN BY TECHNOLOGY
global mobile messaging app WeChat.
In terms of technology, Travelex is
The service is available to travelers
making strides utilising the latest
from mainland China who are visiting
advancements from cloud technology
the US – allowing them to purchase
“ WE ARE NOW IN A FANTASTIC POSITION WHERE WE CAN PROVIDE THE RIGHT INFORMATION TO STAKEHOLDERS” — Leonardo Tantari, Global Director of IT, Travelex
MARCH 2019
FINTECH
CLICK TO WATCH : LEONARDO TANTARI DISCUSSES A SUCCESSFUL YEAR DRIVEN BY COMMUNICATION
goods and services from a large network of retailers using their native currency. “This has been fantastic because it enables the Chinese community in the US to use a consumer offering from Swych, and it demonstrates that technology at Travelex can really integrate with a global technology partner. It shows tremendous effort in terms of how we collaborate, and how technology can transform the Travelex business.” Travelex’s data science function is also instrumental in transforming the business, as it’s vital to be able to provide e uro pe .busi ne ssc hief. com
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FINTECH
CLICK TO WATCH : LEONARDO TANTARI ON THE IMPORTANCE OF TRAVELEX’S PARTNERS 139 insights to all stakeholders in order to
time for partners whilst providing
make informed decisions. “We use Big
enhanced security in the process.
Data in particular – but also AI,” says
“Automation removes some of the
Tantari. “One example is the building
human activities,” Tantari comments,
of our retail stock engine, which allows
“but it should be focused on removing
us to better distribute our retail stock
the more administrative types of tasks.
across our stores. That has been
Ultimately, we still need engineers to
a combination of using both Big Data
help us work and inform effective
and AI.”
automation – with that, the focus then
In addition, Travelex has made
moves to actually being part of activities
significant progress with automation,
which hone in on the real outcomes of
both in terms of improving time to
automation. This in itself is a change:
delivery as well as quality of output to
some people of course need to under-
customers and partners. Automation
stand their job has to change, but it’s
is also used to migrate data, saving
changing from being more task-orie uro pe .busi ne ssc hief. com
T R AV E L E X
CLICK TO WATCH : LEONARDO TANTARI TELLS US HOW CONSUMER BEHAVIOUR IS CHANGING 140 ented to more outcome-focused,
in terms of how we are set up, which
which is critical.”
sometimes means changes. I firmly
Throughout these new developments
believe the key to any successful
which are driving increasing efficiency
change is communication: explaining,
at Travelex, the importance of people
embedding the change, and motivating
can’t be underestimated. Recently,
along that journey.”
Travelex went through a successful
With a presence across six continents,
restructure of its technology team.
a regular dialogue between the technol-
Tantari says this was necessary to
ogy team and the wider business is vital
ensure the right people were covering
in ensuring everyone in the organisation
the necessary disciplines Travelex had
understands the technology journey
identified as those that would help drive
they are on – and it’s clear Tantari is
its future strategic ambitions, both in
passionate about the team he has built.
technology, and as a business. “As any
“Travelex is a really exciting environment
organisation, we look at how to improve
with a lot of opportunities, but with
MARCH 2019
FINTECH
change comes the corporate responsibility to bring along our employees,” he explains. “Communication is something we constantly review from both a people perspective and a technology perspective. We’ll continue to do that with the introduction of more collaborative, innovative tools like improved telepresence, chatbots and video conferencing.”
CONSUMER DEMAND ACROSS A CHANGING LANDSCAPE The main driver of Travelex’s transformation has of course been the customer experience, as consumer behaviour
141
changes rapidly. “We are seeing a big shift,” Tantari comments. “People are moving from using cash and banknotes to more digital solutions. Ultimately, E XE CU T I VE PRO FI LE
Leonardo Tantari Leonardo Tantari has a depth of experience in leading business transformation (including Agile and Digital B2C & B2B transformation), and joined Travelex from Walgreens Boots Alliance. As Global IT Director he oversaw their holistic IT portfolio, driving delivery for all areas from retail and supply chain through to the commercial, whilst spearheading the creation and delivery of a new digital strategy.
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“ I FIRMLY BELIEVE THE KEY TO ANY SUCCESSFUL CHANGE IS COMMUNICATION: EXPLAINING, EMBEDDING THE CHANGE, AND MOTIVATING ALONG THAT JOURNEY” — Leonardo Tantari, Global Director of IT, Travelex
MARCH 2019
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there’s a shift toward self-service – that’s where we’re really focusing from a technology perspective. Customers nowadays are looking for a smooth and seamless journey when it comes to actually transacting with any company or organisation. It’s key for us to understand different types of customers: for example, our offline customers versus online customers. “We have a presence online, on mobile and ATM, and we are leveraging technology such as online chat, but we always maintain a large number of 144
stores on the high street and in airports – that’s really significant to us,” he adds. “Retaining the ability to ultimately speak to a person and offer the reassurance that the transaction is secure, as well as for us to really know our customer, is critical as it is for any financial institution.”
“ PEOPLE ARE MOVING FROM USING CASH AND BANKNOTES TO MORE DIGITAL SOLUTIONS. ULTIMATELY, THERE’S A SHIFT TOWARD SELF-SERVICE” — Leonardo Tantari, Global Director of IT, Travelex
MARCH 2019
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145
As with most companies and particu-
us to be ahead of the game, in relation
larly those in the financial services
to the products and services we offer.
industry, security is at the heart of
We have to meet rigorous, stringent
Travelex’s operations. “It’s something
requirements when it comes to security.”
we review constantly across our land-
These stringent requirements carry
scape,” says Tantari. “This year we will
across not only Travelex’s vast land-
see a significant change in the space.
scape, but its network of partners and
We are piloting a set of tools which we
clients as well as the industry becomes
will test to determine if they are able
increasingly open. “It’s inevitable: you
to detect incoming regulatory require-
can’t deliver everything by yourself,”
ments across the globe– that will enable
Tantari comments. “You need to work e uro pe .busi ne ssc hief. com
T R AV E L E X
1976
Year founded
9,500
Approximate number of employees
146
with customers, partners and suppliers
distributed network we need to support
– the key is to understand how we best
– after all, we have over 9,500 employ-
use the technology, and whether we
ees dispersed globally across six
have to build it for ourselves or buy it.
continents. We rely on partners such
We really ask our partners to adhere
as Ultima and CDW for provision of
to stringent requirements when they
hardware, software and support
come on board.”
across a number of systems to enable
Of these partners, two vital organisations are Ultima and CDW. “The world
us to deliver the best services for our customers and employees.”
we live in now is about integration, the ability to use API to call other services –
A CHANGING LANDSCAPE
therefore, it’s fundamental that we have
Making this transformation work across
a fresh, open and aligned relationship
their global estate, as well as a substan-
with our partners. We have a very large
tial network of clients and partners, has
MARCH 2019
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147
been no mean feat – but Tantari is
everything we do. I believe that in every
confident about the journey so far
organisation technology will eventually
as collaboration remains key. “Our
have a platform and transform their
Commercial Directors are supported
business. Connectivity, but most
by a local presence from our support-
importantly the way we share informa-
ive functions, and we also ensure we
tion, will become critical – changing, of
have a close relationship with those
course, in a safe, secure and efficient
Commercial Directors in order to drive
manner,” he adds.
not only the global agenda but the local agenda,” he explains. “I think as we move into the future of connectivity, with talk of blockchain and digital currency, services will become seamless and API will be at the heart of e uro pe .busi ne ssc hief. com
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EMBRACING TECHNOLOGY IN THE AVIATION SECTOR AT AIR MALTA SE AN GA LE A-PACE WRIT TEN BY
PRODUCED BY
LE WIS VAUGHAN
MARCH 2019
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A I R M A LTA
Alan Talbot, Chief Information Officer (CIO) of Air Malta, discusses how his company is embracing technology amid its digital transformation
T
he importance of adapting to the latest digital trends is fundamental to the sustained success of compa-
nies worldwide. With technology having an increased influence on the way firms conduct their operations, it’s vital to continued growth that companies acclimatise and respond. 150
Alan Talbot, Chief Information Officer (CIO) of Air Malta, is responsible for overseeing a large-scale change in operation amid his company’s digital transformation. Since joining Air Malta in December 2014 originally as Head of ICT, Talbot transitioned to becoming Deputy Chief Information Officer in September 2015 before moving into the role as CIO just over a year later in 2016. “I’ve been in technology for the past 21 years. I come predominantly from the financial services, where I spent around 15 years occupying different posts,” says Talbot. “I can say that my career spans across a number of different sectors sitting on either side of the table, both as a customer and as a solution or service provider. That has MARCH 2019
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€220mn Approximate revenue
1974
Year founded
1,000+
Approximate number of employees
45th
Anniversary in April 2019
e uro pe .busi ne ssc hief. com
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A I R M A LTA
152
helped me in my current position
order to thrive in a competitive in-
to have a diverse and more holistic
dustry, it’s vital that companies adapt
view towards what is required in
to the latest trends to continue to
managing a department, technology
achieve success. Talbot believes that
and people.”
the aviation industry is transforming
Air Malta operates a modern fleet
on an ongoing basis. “The industry is
of aircraft and operates to various
fantastic, and somewhat unique –
destinations in Europe, North Africa
glamorous, dynamic and ever so de-
and the Eastern Mediterranean. In
manding – it never offers respite
MARCH 2019
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153
and constantly demands the best out of you. It’s not similar to the financial services where there is a bit more brand loyalty and legacy in terms of relationship; it makes things a bit more challenging when it isn’t the case. Due to the issues and challenges you face; it’s important to be on your toes. You have to look for any oppor-
“ The industry is fantastic, and somewhat unique – glamorous, dynamic and ever so demanding – it never offers respite and constantly demands the best out of you” — Alan Talbot, Chief Information Officer, Air Malta e uro pe .busi ne ssc hief. com
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TECHNOLOGY
CLICK TO WATCH : ‘AIR MALTA’ 155 tunities that might come along while, at the same time, keeping operations running as well.”
EMBRACING TECHNOLOGY In order to thrive, companies must find unique ways to innovate or risk allowing competitors to take the initiative. Talbot believes innovation and technology are regarded as key areas at Air Malta and defines the way they operate. “If we don’t innovate then we’re out of business. We have to constantly change in order to challenge the status quo. Innovation is the only way to survive. I believe we
“ If we don’t innovate then we’re out of business. We have to constantly change in order to challenge the status quo. Innovation is the only way to survive” — Alan Talbot, Chief Information Officer, Air Malta e uro pe .busi ne ssc hief. com
A I R M A LTA
Lufthansa Systems One of the world‘s leading providers of IT services in the airline industry and your partner for the digital transformation of all airline business processes. We draw our unique strengths from an ability to combine profound industry know-how with technological expertise and many years of project experience. Lufthansa Systems GmbH & Co. KG | info@lhsystems.com | www.lhsystems.com
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Ricston is a boutique MuleSoft and Salesforce partner with 13 years of experience. We specialise exclusively in enterprise integration solutions and API-led connectivity. On a par with thought leadership, we provide full cycle delivery services which enables Clients to modernise, connect and scale across the enterprise in order to execute on Digital Transformation strategies and key business initiatives. MARCH 2019
...
TECHNOLOGY
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were very slow a few years ago and were
an API led economy. Air Malta has im-
lacking innovation,” says Talbot. “Only
plemented MuleSoft, an API and integ-
through change can we actually survive;
ration platform provided by a leading
we can’t afford to stand still and remain
application network company, in a bid
as we are. Technology has helped to
to create integration between all tech-
become the ultimate enabler in which
nical points and partners, ultimately to
we can drive and create change. The
position itself at the center of the entire
results speak for themselves.”
ecosystem. “MuleSoft had one of the
With the firm undergoing a signifi-
most holistic and enabling platforms
cant digital transformation, Talbot has
whereby even the most non-technical
overseen a complete overhaul of the
personnel could create connectivity
company’s IT infrastructure, insourced
and develop integration,” he explains.
services previously outsourced for
“We have partnered with Ricston, a
increased agility and has embarked on
local implementation partner for the e uro pe .busi ne ssc hief. com
A I R M A LTA
Advert
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MARCH 2019
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“In order to achieve sustainability, we must never underestimate our position and size within the market. We need to be realistic about our capabilities and never be afraid to dream and try” — Alan Talbot, Chief Information Officer, Air Malta
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A I R MMAALTA LTA
successful design and deployment of
momentum. This was something that
our Hybrid Integration Platform, and
we were seriously looking at as we
we are still collaborating till this day in
wanted to start capitalizing on the
delivering high quality integration
investment we did and maximize the
projects by utilising this technology.
opportunities that come around on
The fact that we could rely on a local
a commercial basis.�
partner to support us in this delicate
To help achieve its success, Air Malta
part of our strategy was essential in
has partnered with Lufthansa Systems
gaining stability and building up the
to help with the implementation of the
160
MARCH 2019
TECHNOLOGY
company’s leading solutions. “We have
sever integration abilities, so our
significant synergies with Lufthansa
partnerships have been very impor-
Systems when it comes to defining
tant to us.”
certain operational and commercial
The company has also formed a close
related technology,” says Talbot. “They
relationship with Salesforce; a leader
provide one of the best flight planning
in CRM solutions for customer profiling
solutions on the market and this was
and customer data retention. “It has
something that we couldn’t possibly
become extremely essential for our
achieve in the past because we lacked
processing and handling anything that
161
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A I R M A LTA
“ Technology has helped to become the ultimate enabler in which we can drive and create change. The results speak for themselves” 162
— Alan Talbot, Chief Information Officer, Air Malta
is related to customer-oriented services. We use it for social media listening, marketing and managing our sales pipeline as well. It has become part of Air Malta and we consider it as part of our core.”
REMAINING SUSTAINABLE With a population of approximately 460,000 people (2017), running a successful business in Malta is challenging due to the small size of the country. However, Talbot believes Air Malta is well-placed in its position in the field. “We consider ourselves to be a hybrid airline because we aren’t legacy or low cost. But we do offer services at either end of the spectrum as well as being a company that is publicly owned, having a social and corporate responsibility,” explains Talbot. “Being an island, having our own national airline is not only a measure of pride, but also of survivability. For us Maltese it is the only publicly owned means of transport or connectivity to the rest of the world. However, at the same time, you need to be sustainable because you can’t rely on public funds in order to survive and operate.”
MARCH 2019
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In order to remain sustainable, it’s important that companies aren’t content to stand still. Talbot believes that by harbouring aspirations of achieving sustainability, Air Malta must continue to push the boundaries of its capabilities to enhance its position as a leading airline in Malta, and beyond. “Sustainability is extremely difficult to achieve, especially in an organisation of our size. During the last year financial year we’ve managed to achieve profitability MARCH 2019
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after a number of years, during which we grew in capacity and capability. We need to ensure that this isn’t a oneoff situation and that we have actually found the right formula for achieving continued financial sustainability,” explains Talbot. “In order to achieve sustainability, we must never underestimate our position and size within the market. We need to be realistic of our capabilities and never be afraid to dream and try. These are values that this airline needs to endorse and embrace because if we have a vision and are capable of sustaining change as we have done in recent years, then we can all work together for something that has the potential to be much bigger.”
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Improving both customer and employee experience through digital transformation WRIT TEN BY
M ARCUS L AWRENCE PRODUCED BY
LE WIS VAUGHAN
MARCH 2019
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CRODA
Croda International’s Chief Digital Officer Dave Cook discusses how digital transformation is driving the chemical manufacturer’s position as an industry leader
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stablished in 1925, Croda is the name behind high performance ingredients and technologies in some of
the world’s biggest and most successful brands: creating, making and selling speciality chemicals that are relied on by industries and consumers everywhere. Croda has a network of over 4,500 passionate and committed employees, working together as one global team across manufacturing sites and offices in 38 countries. A FTSE100 company with a flexible structure, the business has focused on developing and delivering innovative, sustainable ingredients that their customers can build on in: Personal Care, Health Care, Crop Care, Polymer Additives, Lubricants, Coatings & Polymers, Geo Tech, Home Care and Industrial Specialties. Named among Management Today’s top three most admired companies in the UK, MARCH 2019
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CRODA
“ We’ve put more emphasis on digital and there’s a certain positivity about the fact we’re on the journey” — Dave Cook, Chief Digital Officer, Croda International 170
MARCH 2019
Chief Digital Officer Dave Cook says this success in the public eye has been facilitated by a deeply ingrained ethos of customer centricity. “Croda prides itself on its customer focus: customer intimacy, innovating with customers, having the right products, and providing the right services,” he explains. This drive to improve the customer experience in all its forms is the basis for the firm’s commitment to digital transformation. Cook joined Croda in January 2018 and has since led the company’s digital strategy through this
TECHNOLOGY
CLICK TO WATCH : ‘INTRODUCTION TO CRODA’ 171 exciting time. “One of our goals is to become a digital leader within the industry,” he says. While remaining customer centric, Croda also places considerable importance on the employee experience, and its positive culture surrounding digital transformation exemplifies this focus. “Over the last 12 months, we’ve put more emphasis on digital and there’s a certain positivity about the fact we’re on the journey. Having the buy-in of the employees comes from that commitment to improving their experience alongside the customer experience,” he explains. e uro pe .busi ne ssc hief. com
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STRATEGIC PARTNERS
website, driven by the manufacturer’s
Croda’s approach to IT vendor man-
strategic partnership with Sitecore.
agement positions vendors as strategic
“There’s been a general revamp of our
business partners, fostering relation-
web presence through the Sitecore
ships that maximise value. SAP has
Experience Platform,” Cook notes,
been fundamental to this approach
adding that Qlik’s analytical capabili-
ever since SAP ERP became its core
ties are augmented by Sitecore.
platform nearly 20 years ago. One of
“Sitecore comes with its own analytics
its first extensions was Qlik’s data
which, along with Google Analytics,
visualisation solution sitting on top of
enables us to understand what our
SAP Business Warehouse, which has
customers are doing in the digital realm
provided insights into daily operations
and how that influences their behaviour
and raised data literacy across the org-
further in the buying cycle.”
anisation significantly. However, more
The benefits of this tactile and well-
recently, the company’s focus has
presented web presence are bound-
shifted to marketing and sales. Perhaps the most outwardly
less and began presenting themselves straight away. “We had an immediate
striking result of Croda’s digital
uplift in traffic,” Cook says. “The classic
transformation is its elegant,
KPIs you look for in web engagement
informative and easily navigable
all increased as the sites went live.”
E XE CU T I VE PRO FI LE
Dave Cook Dave Cook is Chief Digital Officer at Croda International Plc. He has over 10 years’ experience in leading a variety of digital transformation initiatives across several industries and organisations including the likes of Time Out and Auto Trader. Dave has an MBA and a first-class degree in Astrophysics from the University of Leicester.
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TECHNOLOGY
Despite this success, the drive to take full advantage of Sitecore’s benefits to the business is no less potent. “The real opportunity is how you take it to the next level. We are still working with Sitecore on the next phase of leveraging their experience platform,” he says. Croda’s interest in this area is particularly focused on the burgeoning concept of B2B personalisation. The concept, which has long been a core aspect of the B2C space, is now beginning to drive B2B actions to improve customer experience through tailored relationships. While Sitecore has reimagined Croda’s online identity, Croda’s strategic part-
“ Having the buy-in of the employees comes from that commitment to improving their experience alongside the customer experience” — Dave Cook, Chief Digital Officer, Croda International
nership with Hootsuite facilitates its advanced social media presence in a landscape where this is increasingly necessary. “Customers are starting to move away from traditional marketing routes. The live event space, with traditional stands, still happens, but customers are increasingly either visiting the website or interacting with our content on social media. With social media we wanted to work with a company like Hootsuite who could bring that strategic partnership element to the table,” Cook explains. e uro pe .busi ne ssc hief. com
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CRODA
C O M PA N Y FACT S
• Croda has a network of over 4,500 passionate and committed employees in 38 countries • A FTSE100 company, Croda is named among Management Today’s top three most admired companies in the UK
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• Placing considerable importance on the employee experience, Croda’s positive culture exemplifies this • Croda is focused on the concept of B2B personalisation, which will improve the customer experience through tailored relationships
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“We were keen to think not only in
felt that Hootsuite were the best
terms of their product range but also
partner for that.”
the services they offer that could help
SAP’s C4C CRM platform is also
to define the strategy we’re going to
part of the mix. “We were looking for
employ, to more effectively measure
a solution that would easily integrate
the impact of our social media pre-
with the rest of the estate and C4C
sence, and to enable employee
was an obvious choice. The links
advocacy. There were a series of
between Sitecore, SAP C4C and SAP
components that we wanted to
ERP are fundamental to a broader
integrate into our approach, and we
agenda,” he adds.
MARCH 2019
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£1.4bn Approximate revenue (2017)
1925
Year founded
4,500
Approximate number of employees
Cook is also mindful of the compa-
consider the people in the business,
ny’s supporting functions and Croda’s
particularly in terms of learning and
implementation of the Cornerstone
development. We asked ‘how do we
talent management platform is indicative
provide the right environment to help
of an attention to detail that extends
people on this digital journey and help
behind the scenes, ensuring that the
them to acquire new digital skills in the
supporting functions of the business
process?’” Cook is quick to reaffirm
benefit from the application of digital
the importance of this approach to the
transformation technologies. “Bringing
firm’s wider success with digital trans-
Cornerstone in is about how we
formation. “It’s one of those examples e uro pe .busi ne ssc hief. com
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where it’s not necessarily front of mind but, without that enabler, it’s very hard to achieve your bigger objectives. You need to have the skilled people in place to make the journey successful.”
GROWTH THROUGH ACQUISITION Cook is confident in Croda’s ability to source the best partners to help solve business challenges and drive innovative processes, adding: “Where we MARCH 2019
TECHNOLOGY
don’t have a skill set, we’re very confident that we can find the right partners and bring those skills into the organisation.” This ethos extends to Croda’s acquisition strategy, with an example being the addition of an inhouse team of machine learning specialists through the company’s 2015 purchase of Incotec. At Incotec, the team developed a machine learning solution that can autonomously assess the quality of seeds and their likelihood of germination, boosting yield through this intelligent seed selection. This expertise in development of sophisticated technologies is now being applied to Croda’s other manufacturing processes with a view to drive efficiency and boost production rates. It is clear Croda’s digital strategy is positively influenced by the company’s open-mindedness to the digital operations of the firms it acquires. The companies that Croda acquires are frequently leaders in their own fields, which offers an intriguing prospect for locating complementary technologies for its digitisation strategy. “Because they tend to be forward thinking, they may have some interesting examples of where they’ve used technology that e uro pe .busi ne ssc hief. com
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“ Where we don’t have a skillset, we’re confident that we can find the right partners and bring those skills into the organisation” — Dave Cook, Chief Digital Officer, Croda International
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TECHNOLOGY
maybe Croda hasn’t adopted yet,” Cook says. Croda is certainly in an extremely strong position as it continues its digital transformation journey, with a culture of excitement coupled with positive change management and measured flexibility that ensures the selected digital solutions are the right ones to drive the company forward. All of this is compounded by an unerring commitment to customers and ensuring that the firm’s focus is on being the best in the industry. “I think we are incredibly positive about how we can use digital to improve our organisation in order to deliver a better service to our customers,” Cook adds. “We’re very pleased with how far we’ve come, but there’s still a lot to do, and we’re very focused on achieving the outcomes that we’re after.”
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How IBS Software is helping airlines with their digital transformation WRIT TEN BY
SOPHIE CHAPM AN PRODUCED BY
M ANUEL NAVARRO
MARCH 2019
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I B S S O F T WA R E
Leading airlines and travel providers are partnering with IBS Software for transforming their business operations and Daniel Stecher,IBS’ Vice President of Airline Operations, tells us why...
I
BS Software is a leading provider of software products and services for mission critical and key business operations for the global travel,
transportation and logistics industry. The firm powers some of the world’s best airlines, busiest airports, leading cruise lines, major hotels, travel distributors, and top oil 186
and gas companies. Established in 1997 in India, the company has since established a global presence with 10 offices across the Asia-Pacific (including Japan), the Middle East, Europe, and North America, with its global headquarters in Singapore. “As our chairman, V K Mathews puts it, the key word that is core to our story is ‘focus’. Domain focus has been key to our success within travel, transportation and logistics. We are also technology-focused – as we choose only to work with modern technology and are determined to take the industry out of the clutches of legacy systems,” reveals Daniel Stecher, Vice President, Airline Operations at IBS. The company’s products and services are designed to leverage modern technologies to enable its customers to benefit from evolving technology trends such as mobility, big data, blockchain, analytics and cloud computing. “Our vision is centered around building next generation MARCH 2019
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I B S S O F T WA R E
“ Our vision is centered around building next generation platforms and products to help our customers on their business transformation journeys”
188
— Daniel Stecher Vice President of Airline Operation, IBS Software
platforms and products to help our customers on their business transformation journeys. Our core values help us translate that vision into reality,” says Stecher. The core values of precision, passion, commitment, integrity and respect for the individual are guiding principles for the organisation. For an industry that has been resistant to incorporating evolving technology, travel and tourism is ripe for disruption that will touch on every phase of the customer experience. With significant digital disruptions in the market place, consumer behaviour is changing and new business models are evolving. Digital trends that simplify decision making in travel like big data, artificial intelligence and machine learning can help personalise travel services. IBS claims the desire for unique experiences has been the most crucial customer demand this year. “To address the shifting industry landscape, digital business strategies are what travel service providers are looking at. Over time, the value of their enterprise is going to shift more towards digital assets than physical. Travel companies are becoming increasingly
MARCH 2019
TECHNOLOGY
CLICK TO WATCH : ‘IBS SOFTWARE - SHOWCASE’ 189 aware of the need to build their digital
do we facilitate ‘Collaborative Disrup-
capabilities and to fulfil these require-
tion Management’ and help airlines
ments, they will want digital ready
avoid burning money? The key to
infrastructure. IBS is well positioned to
digital transformation lies in answering
help our customers on this journey and
such questions”.
serve them as digital enterprises,”
IBS’ core technology strategies are
Stecher reveals. “In operations control,
based on robust technology selection,
for example, when it comes to digital
scalable and flexible product architec-
Operation Control Centres we like to
ture, and reusable components, with
ask our customers how concepts like
solutions for the travel marketplace, air
big data, IoT, predictive analytics, and
cargo operations, upstream oil and gas
the cloud translate to real value in
logistics, airline passenger services,
airline operations? How do we effec-
loyalty management, and flight and
tively conduct the evolution of the
airport operations. The firm also offers
digital OCC from legacy systems? How
services featuring industry-specific, e uro pe .busi ne ssc hief. com
I B S S O F T WA R E
“With iFlight NEO, we enable carriers to better work on disruptions, as the system makes use of real time data for proactive disruption management” — Daniel Stecher Vice President of Airline Operation, IBS Software 190
specialized information technology.
to extract the multidimensional value of
“We have adopted a unique collabora-
cloud services: “The benefit is that you
tive approach to developing a product
can really harmonise data much easier
roadmap wherein we gather insights
if you have everything in the cloud. Of
into the future direction and next
course, security plays an important
generation technology needs of the
role, especially considering GDPR and
sectors. Our differentiated approach to
as a digital company we consider data
product development allows us to
protection and personal privacy,” adds
deepen our industry knowledge, align
Stecher. The company’s products are
our software products to our custom-
delivered as Software as a Service
er’s evolving business needs and
(SaaS) which is made possible through
identify early adopters for our new
global custom data centres being
software products,” Stecher notes.
equipped with the necessary informa-
IBS has been pursuing strategies MARCH 2019
tion technology infrastructure to
TECHNOLOGY
ensure high levels of security, redun-
through these high maintenance
dancy and uptime. With minimal
legacy mainframe systems not only
investment in technology infrastruc-
becomes difficult for airlines, but also
ture, airline companies and travel
poses an intolerably high level of risk
service providers are able to make use
for the business. In effect, we are not
of volume-based expenditure control.
only replacing this one system; we are
The company is currently working
replacing four others,” Stecher notes.
with a number of the leading airlines in
Overcoming the heavy cost implica-
Europe. According to Stecher, some of
tions of migrating away from legacy
these airlines use decades old legacy
systems begins with looking at a cloud-
systems. “IBS is currently working with
based approach. The company’s new
these airlines on huge digitalisation
digital platforms are not only cloud
projects, because they have been
native, but are also cloud agnostic. The
using the same systems for 3 or 4
recently launched iFlight NEO system
decades. Sustaining operations
is an integrated digital platform, which
E XE CU T I VE PRO FI LE
Daniel Stecher As Vice President and Head of Global Sales for Airline Operations Daniel is responsible for global sales and business development of the brand new airline operations digital platform “iFlight NEO”. He created the OPS 2020 industry event which brings together global airlines and is dedicated to the global Airline Operations and Crew Management Community. He has more than 20 years of experience spanning over the logistics industry and has been traveling more than one and a half million miles, in order to meet with industry experts and customers from the air cargo industry and airline business IT solutions industry.
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191
Technology everywhere. Innovation anywhere. We believe everyone should have the freedom to reshape industries and achieve their dreams. Our solutions are trusted by over 98% of Fortune 500 companies across 180 countries.* So no matter where you’re ready to go, you can trust we’re ready to help you get there. Know More at DellEMC.com/in/ITTransformation
*Based on Dell internal analysis, February 2019. *Important Dell Details. Dell's terms and conditions: All sales subject to Dell's terms and conditions, see Dell.co.in/tnc. Goods by delivery only. Mistakes: While all efforts are made to check pricing and other errors, inadvertent errors do occur from time to time and Dell reserves the right to decline orders arising from such errors. More Information: Go to Dell.co.in/details. Copyright © 2019 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC, Dell EMC and other trademarks are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners. For more information on how we use and protect your data please visit Dell’s Privacy Statement Dell.com/learn/in/en/incorp1/policies-privacy If you no longer wish to receive our marketing communications, please visit Dell’s unsubscribe Page Dell.com/Preferences/ListRemoval/. For more details, please visit DellEMC.com.
TECHNOLOGY
“ We look at DELL as a strategic supplier, because for us, the first priority for our enterprise requirements is the quality of aftersales support we receive” — Daniel Stecher Vice President of Airline Operation, IBS Software
being an important factor of airlines giving us data to store in the cloud, we rely on Dell to supply us with hardware that will perform well. There is a train of trust – as we trust Dell, this trust is pushed further into the market as we offer our solutions to customers,” says Stecher. More importantly, the firm also provides Chassis and Blade servers and virtualisation technology for IBS’ private cloud. Its EMC VNX, Unity, and SC series meet IBS’ storage requirement for their SaaS DCs and internal private cloud. “We look at DELL as a strategic supplier, because for us,
enable carriers to manage their
the first priority for our enterprise
operations, including fleet, hub and
requirements is the quality of after-
crew. The operations control and core
sales support we receive. Their techni-
management system aims to utilise the
cal know-how and customer service of
firms’ resources and incorporate the
DELL support engineers are best in
latest technologies. “With iFlight NEO,
class and makes all the difference. The
we enable carriers to better work on
DELL-EMC-VMW Technology alliance
disruptions, as the system makes use
also comes to our advantage since DELL
of real time data for proactive disrup-
is able to act as a single point of contact
tion management,” says Stecher.
during any technical issues or failures.”
As the company progresses, IBS
As IBS continues to expand its
turns to DELL as a strategic partner for
services and partners, Stecher reveals
its hardware needs. DELL supplies IBS’
the biggest obstacles the company will
employees’ Enterprise class desktops,
have going forward. He cites the
such as the DELL OptiPlex series, and
largest challenge as the objection to
DELL Latitude laptops. “With liability
change within the airline industry, e uro pe .busi ne ssc hief. com
193
I B S S O F T WA R E
“Very often we have to offer explanations to initiate change. That’s the biggest obstacle to building trust with people when they begin to think about necessity of change.”
194
— Daniel Stecher Vice President of Airline Operation, IBS Software
MARCH 2019
TECHNOLOGY
which he says is “very risk averse”. “It’s a very safety and regulation-oriented industry and will never compromise on safety. Technology has not always provided absolute safety, so very often we have to offer explanations to initiate change. That’s the biggest obstacle with building trust with people when they begin to think about necessity of change.” Despite these obstacles, Stecher and the IBS team will move forward introducing new technologies to aging systems in order to make a real difference to the airline industry and beyond.
195
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196
Customercentric digital transformation at Hapimag WRIT TEN BY
DA LE BENTON PRODUCED BY
M ANUEL NAVARRO
MARCH 2019
TECHNOLOGY
197
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HAPIMAG
Hassan Kadbi, CEO of Hapimag, explores how the company is embracing the digital world to attract a new generation of customer
I
n today’s hospitality, travel and tourism industry, the destination is no longer the key differentiator between companies.
The modern-day guest has more diverse expectations and demands than ever before and industry 198
players have had to wake up to this shifting customer base, recognising that delivering the best possible guest experience, both in and out of the holiday facility, is proving to be the ultimate competitive advantage in a multi-billion-dollar market. For Hassan Kadbi, CEO at hospitality business Hapimag, the last 20 years have seen most businesses across the industry diversify “dramatically” in order to navigate this shifting customer base. At Hapimag, the key to succeeding across this changing landscape is continuous learning and improvement. “Historically, hospitality, accommodation and tourism were all about good service at a good price,” he says. “But over the years, so many elements have changed the game, and the speed at which this is happening is overwhelming for companies. The challenge then becomes ‘how can you MARCH 2019
TECHNOLOGY
199
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TECHNOLOGY
CLICK TO WATCH : HOLIDAY BUT DIFFERENT 201 keep up with this, deliver what your
to simplify the Hapimag product and
customer expects and not lose that
make it more attractive to a younger
customer in the end?’”
generation of guests through the
Kadbi joined Hapimag back in 2005,
digitalisation of its business model.
having previously worked in senior
His biggest challenge was evolving
management positions for Hilton World-
the company as the industry around
wide across the United Kingdom and
it changed, and understanding and
Greece. Over the following years, he
responding to those various elements.
rose through the ranks of Hapimag,
Kadbi breaks this strategy down into
taking responsibility of various resorts
three key areas: destination; the mindset
across Greece, Turkey and North Africa,
of the modern travelling guest; and, of
finally being in charge of all Hapimag
course, the complexity of digitalisation.
facilities, before taking over the role of
“Competition started with the destina-
CEO in 2016. When appointed as CEO,
tion. It was the key selling point. However,
Kadbi was tasked with one clear vision:
looking at the industry today, there are e uro pe .busi ne ssc hief. com
HAPIMAG
“ We want employees to make decisions, make mistakes, learn from them and do the best for the customer” — Hassan Kadbi, CEO, Hapimag
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MARCH 2019
TECHNOLOGY
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TECHNOLOGY
so many players that offer resorts and
supported by technology that enables
hotels in the same destination. So the
an entirely seamless experience, so
pressure began to pile onto the business
they can have that unique experience
itself,” he says. “As for the guest, trav-
at the destination.”
elling used to be for business or for
Hapimag was founded in 1963 with
a holiday. Today, one of the biggest
the idea of providing people who could
reasons for travel is the experience
not afford their own holiday home with
surrounding the destination. The youn-
the opportunity to spend their holidays
ger generation looks for experience
in a “place of their own” in various
before they even consider accommo-
locations around Europe. Fast forward
dation. We then have to look at our
to today and the firm has around 125,000
product offering, factor in this chang-
shareholders and members who can
ing landscape and ensure that it scra-
take advantage of stunning holiday exper-
tches that itch. It should also be
iences across 16 countries. While
E XE CU T I VE PRO FI LE
Hassan Kadbi Hassan Kadbi has worked at Hapimag since 2005. He started as a Resort Manager in Bodrum, then as an Area Manager for Greece, Morocco and Turkey, before assuming responsibility as Chief Resorts Officer for the operational management of the resorts. He has served as CEO of Hapimag since November 2016. Before joining Hapimag, he worked for Hilton in various positions globally. He has a Bachelor of Arts in International Hospitality and Tourism Management from the University of Bournemouth (GB) and a Higher Diploma in Hotel Management from the IHTTI School of Hotel Management in Neuchâtel (CH).
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205
HAPIMAG
“The days where the challenge was simply ‘does the place have a Wi-Fi connection and is it free of charge?’ are gone” — Hassan Kadbi, CEO, Hapimag
206
Hapimag has enjoyed decades of un-
to attract and retain a younger gener-
deniable success, operating for more
ation of guests.”
than half a century has created what
For most companies, digitalisation
Kadbi describes as “something of
is the key to attracting the younger
a closed community” for the company.
customer or guest, but Kadbi is keen
“By closed community I mean regular
to stress that while digitalisation is im-
customers. All of our customers
portant, Hapimag doesn’t fall into the
across our 60 properties are regular
trap of overwhelming the customer
customers,” he says. “But our next
with digital services. Booking platforms,
generation of customers will be
customer service and online portals
younger and have different expecta-
are all instrumental in delivering the
tions and demands. We’re now chang-
best customer experience but Kadbi
ing what we’ve historically done and
believes that the area of focus should
transforming as a business in order
be a little more behind the scenes.
MARCH 2019
TECHNOLOGY
“The secret to our success in everything we do is data and what we do with it – everything we know about our customers and their behaviours and engagement with Hapimag,” he says. “The days where the challenge was simply ‘does the place have a Wi-Fi connection and is it free of charge?’ are gone. Now we have to ensure we have the right bandwidth to support the customer’s interests. They want to stream a movie, listen to music or browse on their personal devices. It’s about what we can do to make the
e uro pe .busi ne ssc hief. com
207
HAPIMAG
customer’s life easier as they use our product unconsciously.” Hapimag’s shareholder base extends well beyond its 125,000 registered members. As Kadbi notes, their families and friends are also interacting with Hapimag, so the challenge of optimising and simplifying that interaction process is significant as the company looks to deliver the best possible customer experience. He points to Hapimag’s rewards system and how, across the industry, many hotels require 208
guests to use rewards gifted to them by a certain time or they expire. “The bottom line was that 50-60% of those rewards were lost because even though we remind members and shareholders, it’s not the first thing on their mind and they often forget they have them,” he says. “So, we automated our rewards
ensuring that the customer is driving
system. Customers spend their money,
the demand, not the technology.
they earn their rewards and those rew-
Hapimag looks to invest in technology
ards are automatically placed in their
where there is clear and tangible value
accounts. Just like that. I have always
to the customer. Wireless technology
believed that a company should offer
and connectivity, for example, are
a digital rewards system where the cust-
crucial to a seamless customer exper-
omer doesn’t have to do a thing.”
ience and across all of its locations. But
This represents the company’s smart
what of the biggest technology trends
approach to the digital conversation,
that are defining the global conversa-
MARCH 2019
TECHNOLOGY
209
tion? Where do artificial intelligence
that steers the conversation. “At this
(AI) or blockchain fit into Hapimag’s
point for me, it’s a case of spending
transformation? “Right now, they are
€1mn on technology or spending €1mn
irrelevant for us as a direct investment,”
on putting better mattresses in all of
says Kadbi. “We are waiting to see
my resorts. I’ve got a view that the better
what is out there in the market and then
mattresses will make my customers far
we will decide if something like AI or
happier at this point.”
chatbots could bring added value to
The key to understanding just how
Hapimag and its customers.” Once
happy the customer is lies with effective
again, it’s the customer experience
communication, and Hapimag goes to e uro pe .busi ne ssc hief. com
HAPIMAG
210
great lengths to ensure that its decision
programmes with its customers in
making is in line with the customer and
order to grow with its community
not the other way around. It does this
interests in mind and therefore better
through regular questionnaires and
serve them. A key example of this is the
surveys that allow Kadbi to ask the
honesty bar concept whereby Hapimag
questions: “Do our customers like our
allows guests to enjoy food and bever-
product? Are they happy? Where
ages within their room at their own
could we improve?�
leisure. Rather than a member of staff
As well as feedback surveys, Hapimag also runs a number of pilot MARCH 2019
checking and adding an additional cost onto the experience, the guest pays on
TECHNOLOGY
211
departure. “They simply enjoy the
To deliver an unrivalled customer
experience knowing that they don’t have
experience, Hapimag requires the right
to worry about paying then and there,
people and employees. After all, running
or waiting for us to place additional costs
a resort or a hotel is a complex process
onto them,” says Kadbi. Within just over
and a key part of what makes Hapimag
two years of starting the initiative,
successful is its company culture.
Hapimag now has honesty bars at more
Kadbi notes that it has to start from the
than 30% of its locations and has since
top. “We lead by example and this passes
been expanding this further and creating
down through the company and to the
honesty shops.
customer,” he says. “We believe that e uro pe .busi ne ssc hief. com
HAPIMAG
“ One thing we really do not mess around with is the experience, the authenticity, and being a true community” — Hassan Kadbi, CEO, Hapimag 212
you need to be inclusive of your employees and inclusive of your customers when moving forward.” Kadbi himself writes an internal blog that explores how the company is evolving, as well as an internal note that champions the success of his employees. “Our communication channels now represent empowerment projects for employees,” he says. “It’s part of a cultural change. We want employees to make their own decisions, achieve success and make mistakes. They will learn from this and better understand how they can do more for the customer.” MARCH 2019
TECHNOLOGY
This culture of communication and empowerment forms a central part of what makes Hapimag truly unique: authenticity in delivering on its promise to provide individual holiday homes and experiences all over the world. Its customer base is changing dramatically, with its future target group being made up of the millennial generation and Kadbi believes that as the customer becomes more digitally enabled and more informed than ever before, the authenticity of Hapimag will stand the test of time. “Millennials are incredibly smart shoppers. They follow a cause more than the older generation, and at the same time they demand authenticity,” he says. “At Hapimag, we are learning, we are improving and we will continue to do that. There’s one thing we really do not mess around with and that’s the experience, the authenticity, being a true community.”
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213
214
MARCH 2019
S U P P LY C H A I N
KTM GROUP
ACCELERATING TOWARDS THE ASIAN MARKET WITH SUPPLY CHAIN EXCELLENCE WRITTEN BY
LAURA MULLAN PRODUCED BY
CHARLOTTE CLARKE
a si a .busi ne ssc h ief. com
215
KTM
LUCA MARTIN, MANAGING DIRECTOR AT KTM ASIA MOTORCYCLE MANUFACTURING INC., REVEALS HOW THE FIRM IS READYING ITS SUPPLY CHAIN FOR THE BUSINESS’ NEXT FRONTIER: ASIA
I
f you’re a motorcycle enthusiast, KTM Group will be a company firmly on your radar. Offering everything from trailblazing street
bikes to dirt-shredding motorcycles, KTM has earned its reputation as Europe’s largest motorbike manufacturer and now, on the road ahead, it has 216
its eyes firmly set on a new horizon: Asia. One integral player at the heart of this expansion is Luca Martin, Managing Director at KTM Asia Motorcycle Manufacturing Inc. Martin is a seasoned professional when it comes to two-wheeled vehicles: he started his career as a mechanical engineer, specifically working on vehicle engine development where he used artificial intelligence (AI) to optimise mechanical components. His next career move saw him at Ducati. “I helped to create the complete supply chain of Ducati in Asia from scratch,” Martin recalls. “We had to find new suppliers, develop new components locally to optimise the factories out there.” This was no mean feat, but Martin helped to establish Ducati’s Asia presence and therefore when KTM Group readied itself to enter the Asian market, Martin was an ideal candidate for the job. MARCH 2019
S U P P LY C H A I N
217
a si a .busi ne ssc h ief. com
KTM
“ WE STARTED PRODUCTION FOR BOTH LOCAL AND EXPORT MARKETS JUST OVER A YEAR AGO AND WE ARE ALREADY PRODUCING MORE THAN 7,000 UNITS A YEAR”
218
— Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc MARCH 2019
As part of this ambitious strategy, the company forged a US$2mn joint venture with Ayala Group’s offshoot Adventure Cycle Philippines Inc and a new subsidiary, KTM Asia Motorcycle Manufacturing Inc. (KAMMI), was born. Today, the company produces bikes such as the KTM 200 Duke and RC 390 at its state-of-the-art manufacturing facility in Laguna, right in the heart of the Philippines, offering the perfect springboard for KTM Group to enter Asia. “We started production for both local and export markets just over a year ago and we are already producing more than 7,000 units a year,” enthuses Martin. “We have big hopes for the Southeast Asian market.” Tackling a new location is a challenge for any firm, but with its strong local partnerships, KTM Group has been able to hit the ground running. “Thanks to Ayala’s support, we’ve been able to start production in a very short time: we’ve been able to move from a startup to a scaleup company,” Martin observes. “They really helped us establish strong relationships with local suppliers and this is one of the key advantages of setting up this joint
S U P P LY C H A I N
CLICK TO WATCH : ‘KTM FACTORY RACING 2019 DAKAR RALLY REVIEW | KTM’ 219 venture.” As one of the largest and
suppliers are used to working in the
most diversified business groups in the
automotive segment and they’re used
Philippines, Ayala Corporation is
to helping manufacture millions of cars
present in markets including real
every year. Our challenge is to help the
estate, banking, telecommunications,
supplier understand that by working
water, power, industrial technologies
with a well-known brand, there’s more
and more. This has allowed KTM
opportunity to grow. In the long term,
Group to gain a deep understanding of
we hope to increase our more and
the Philippine market.
more bikes.” In doing so, KTM Group is
Entering this new market was a
not only helping to meet the burgeon-
challenge from a supply chain per-
ing demand for its motorbikes, it’s also
spective as it meant developing a new
helping to boost the local economy
network from scratch. However, this is
and generate employment for more
a challenge that KTM Group has taken
Filipinos. “Many of our suppliers are
head on. “Many Asian companies and
small- and medium-sized enterprises a si a .busi ne ssc h ief. com
KTM
220
(SMEs),” explains Martin. “By working
working with some partners in Asia to
with us, they get the chance to grow
develop a supplier rating platform
not only in terms of revenue, but also in
where each and every supplier can log
terms of qualities and process.”
in, create a profile and get feedback
Always keen to race ahead, KTM
about their performances. I think this
Group has also sought to digitalise its
digital approach is important for the
supply chain. “We’re finding new ways
future of procurement.” Data is
to get in contact with suppliers,” Martin
probably one of the most powerful
says. “In the past, we used to get
tools that supply chain professionals
hundreds of emails every day with
have today, however whilst technology
different company profiles and most of
is set to disrupt the sector for good,
the time I simply didn’t really have the
Martin affirms that a human approach
time to physically go through all these
is also vital. “If we want to build a very
potential prospects. Now we are
strong relationship with suppliers, I
MARCH 2019
S U P P LY C H A I N
221
E XE CU T I VE PRO FI LE
Luca Martin Turnaround CEO with 10+ years of experience in the automotive business. Developing high quality business strategies and plans ensuring their alignment with short-term and long-term objectives. Leading and motivating directors to advance employee engagement, developing a high performing managerial team. Setup of operational and financial goals, informing and advising Board members, managing the organization’s resources, promoting the enterprise to its stakeholders, recommending a proper budget, with an emphasis on cost savings. Start-up approach on new operations. Business angel and startup mentor/investor.
a si a .busi ne ssc h ief. com
KTM
1953
Year founded
€1.14bn Approximate revenue 2016
HQ
222
Mattighofen Austria
MARCH 2019
S U P P LY C H A I N
223
a si a .busi ne ssc h ief. com
KTM
Twice the power, Twice the possibilities
LEARN MORE
www.vpic-group.com | pndat@vpic-group.com
S U P P LY C H A I N
CLICK TO WATCH : ‘THE JOURNEY OF A LEGENDARY BRAND HUSQVARNA MOTORCYCLES’ 225 think it’s important that we visit them. We need to create a face-to-face relationship,” he asserts, “but at the same time, I think that digital platforms can help buyers be more productive because they can count on reliable data to select suppliers.” As well as developing a new supply chain, KTM Group also had to contend with the challenge of getting the right talent and expertise on board, however when your brand is one associated
“ THANKS TO AYALA GROUP’S SUPPORT, WE’VE BEEN ABLE TO START PRODUCTION IN A VERY SHORT TIME: WE’VE BEEN ABLE TO MOVE FROM A STARTUP TO A SCALEUP COMPANY” — Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc
with adrenaline and speed it seems that finding employees who are passionate about the product isn’t too a si a .busi ne ssc h ief. com
Proud to be part of.
Creating value for all.
Creating value by combining the power of innovation and product quality and passionately creating world class solutions catering to two wheeler, passenger cars, commercial vehicles, construction and agricultural machines and rolling stocks. Visit us at: motherson.com
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wiring harness rearview mirrors moulded plastic parts and assemblies injection moulding tools moulded and extruded rubber components modules and systems machined metal products cutting tools aluminium die casted products sheet metal parts thin film coating metals IT services wireless power hot stamped parts
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KTM Engine Factory in Mattighofen
MARCH 2019
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S U P P LY C H A I N
difficult. “We’re lucky that we produce a product which you could call an entertainment product so you can tell talent, ‘Look, if you are passionate for the motorcycles, we are producing one of the best that you can find in the market’,” says Martin. “This is a very valuable retention tool. A lot of KTM employees are passionate about motorcycles or are even professional riders. On the other hand, we do believe that this isn’t the only thing we offer. We also try and onboard local
“ KTM GROUP HAS RECORDED RECORD VOLUME PRODUCTION EIGHT YEARS IN A ROW” — Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc
227
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KTM
“ IF WE WANT TO BE SUCCESSFUL ABROAD, WE NEED LOCAL TALENT”
228
tion, the Asian market will play a key role in its future growth strategy. “KTM Group has recorded record volume production eight years in a row. Every year we’re producing more and more bikes and in 2018, we saw a total sales increase of about 10% to 261,000
— Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc
well-known brands for off-road in
people who believe in our values. If we
equipment manufacturers) but the
want to be successful abroad, we need
future growth of KTM Group cannot
local talent because only they can help
be as strong without Asia.”
KTM better understand the local culture.” The Philippine plant is KTM Group’s
motorcycles. KTM is one of the most North America and in Europe we are now one of the biggest OEMs (original
KTM Group’s reputation precedes it. To disrupt the Asian market KTM Group
third manufacturing facility, with its first
will undoubtedly rely in on its race-
located in its home country of Austria
proven success. Its distinctive orange
and the second in India. In selecting
motorcycles have crossed the winning
Asia as a key market, Martin contends
line at 18 Dakar Rallies in a row and
that as the group ramps up its produc-
KTM racers have gained 281 world
KTM Board of Directors
MARCH 2019
S U P P LY C H A I N
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KTM
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S U P P LY C H A I N
CO MPAN Y FACT S
• 281 world championship titles up until now • 18 wins at the Dakar Rally in a row • Europe’s biggest motorcycle manufacturer • Total sales 2018 increase of about 10% to 261,500 motorcycles
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“ WE TRY TO TRANSFER WHAT WE’VE LEARNT FROM OFFROAD IN TERMS OF PRODUCT QUALITY AND EASE OF MAINTENANCE AND BRING THAT TO OUR STREET BIKES. WE ALWAYS WANT TO BE ON TOP OF TECHNOLOGY” — Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc
232
championship titles up into now. Martin wants to bring this same world class quality to Asia. “We want to show the Asian market that KTM represents
We always want to be always on top of
quality and more importantly, we’re
technology.” KTM Group has also
ready to race. We want to bring this
shrewdly kept track of emerging trends
racing spirit to Asia and we truly believe
in the motorcycle space. For instance,
there will be a bright future for big bikes
whilst the firm noticed a dip in demand
in this market.” The firm won’t just rely
for superbikes they tapped into the
on its legacy though: it’s keen to invest
growing uptick for smaller bikes.
in new innovation so that it can create
“This was a strong move by KTM,”
the best race machines in the market.
notes Martin. “We focused on smaller
“One of our biggest competitive
displacement bikes but our competi-
advantages is that we try to transfer
tors didn’t.”
what we’ve learnt from offroad in terms
Just as consumer demands are
of product quality and ease of mainte-
shaking up the market, the rise of
nance and bring that to our street bikes.
electrification could always change the
MARCH 2019
S U P P LY C H A I N
233
motorcycle market for good. “We are
a challenge but with the right partner
now in an era of new mobility,” Martin
we will be able to prepare for this shift.”
asserts. “We truly believe that sooner
Looking ahead, the future is bright
or later they will be a move to electric
for KTM Group. The firm has cemented
motorcycles. We have been developing
its position as Europe’s largest
off-road electric bikes for many years
motorbike manufacturer, and now
already. We’re seeing a shift in that
Asia’s motorheads need to look no
direction and we want to be part of this
further if they want to get their hands
movement.” This market swing won’t
on a high-quality race machine.
come without its challenges though. Whilst the weight of a battery may only slightly alter the performance of a car, it can “completely change the handling of a bike”, according to Martin. “This is a si a .busi ne ssc h ief. com
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MARCH 2019
MINING
EMMERSON: DISRUPTING THE GLOBAL POTASH MARKET WRIT TEN BY
DA LE BENTON PRODUCED BY
RICHARD DE ANE
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EMMERSON PLC
Hayden Locke, Executive Director of Emmerson, explores how the company looks to disrupt the booming potash market with the Khemisset project
I
n the mining industry, location is not only a competitive advantage – it can also be the difference between
success and failure. This is particularly the case in the global potash market, one that 236
has a number of barriers to entry meaning only a handful of operations have been built over the last 50 years. “There’s a reason why there’s been only one new potash mine built in the last 50 years outside of Russia and China and that is primarily the astronomically high capital cost to production for most potash mines,” says Hayden Locke, Executive Director of Emmerson. “That mine was built in Canada, cost over US$4bn, and was built at a time where potash prices were more than double what they are today. In today’s market, that mine would never have been built.” Emmerson is a potash company focused on the development of its flagship Khemisset Potash Project, located in Northern Morocco. MARCH 2019
MINING
237
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EMMERSON PLC
238 The project has significant exploration potential with an accelerated development plan that is targeting a low capital expenditure (capex), high margin potash operation which will produce around 800,000 tonnes per annum. One of the key highlights of the project is its very low capital cost to production by potash industry standards. In the opinion of Locke, this is the first hurdle to be cleared in order to have any chance of entering this extremely protected market. Its location in Morocco, with a number of export ports accessible from the project site and close MARCH 2019
“ IF YOU’RE CLOSE TO YOUR END MARKET, YOU WILL LIKELY ALWAYS BE COMPETITIVE, JUST THROUGH THE COST SAVINGS IN THIS KEY AREA” — Hayden Locke, Executive Director, Emmerson
MINING
CLICK TO WATCH : ‘EMMERSON PLC ON TARGET WITH LOW CAPEX POTASH PROJECT’ 239 proximity to the deep European,
Morocco it has a huge advantage over
Brazilian and US markets provides
competitors.”
the second competitive advantage –
Morocco is fast becoming a signifi-
one which is unerodable. “The majority
cant player in the global potash market
of existing potash production is located
and has been identified as one of the
in Canada and the Former Soviet
top five fastest growing import markets
Union, and by far the biggest costs for
for potash in the world. This has seen
these producers are incurred through
potash demand grow at over 140% per
royalties, transport and logistics,”
year over the last five years. “That’s
Locke explains. “If you’re close to your
basically 70 times faster than the global
end market, you will likely always be
market,” says Locke. “That’s a real
competitive, just through the cost
strategic advantage to this project and
savings in this key area. Khemisset’s
something that gets me excited about
location is second to none, and with
what we can achieve.” Over the course
the negligible royalties payable in
of his career, Locke has worked in e uro pe .busi ne ssc hief. com
EMMERSON PLC
240
MARCH 2019
MINING
senior executive roles for a West African
hear of people getting lucky and timing
gold developer and a potash dev-
their investment in the cycle perfectly,”
elopment company based in both
says Locke. “But that is not easy to
London and Spain. This experience
do, so you need to bulletproof yourself
has provided him with a unique view
against the cycle by being among the
of the potash market, as well as the
lowest delivered costs to your custom-
challenges of working in the African
er and in potash: that’s largely driven
market and attracting investment.
by location.”
Khemisset benefits from an incredibly
The Khemisset project is less than
attractive location, but Emmerson also
150km from an operating port that is
looks to create an operation with very
already accessible from existing
low capex by industry standards, which
logistics infrastructure, and is 90km
will prove key in attracting investment
and 130km respectively from two
as it looks to advance development.
additional ports, which are also easily
“Having worked for the best part of
accessible. Having this infrastructure
a decade in the commodity space and
already in place, with limited invest-
dealing with commodity cycles, you
ment required by the company, means
E XE CU T I VE PRO FI LE
Hayden Locke An experienced mining executive with 15 years’ experience in mining, private equity and investment banking. Most recently, Locke was Head of Corporate and Technical Services (Geology, Mining and Processing) at ASX listed potash developer Highfield Resources. Prior to this, Hayden was Head of Corporate for ASX listed Papillon Resources which was sold to B2Gold in 2014 for $650mn. Throughout his education, Locke studied engineering, commerce and geology.
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THE PROFESSIONAL DRILLING EXPERIENCE Drillon is a newly established drilling company with a globally experienced, highly focused and motivated multinational team from the drilling industry. With a success-oriented team our aim is to give our clients “the professional drilling experience”.
DRILLING
CONSULTANCY
EQUIPMENT SUPPLY VISIT OUR SITE CONTACT US
MINING
243
a significant reduction in overall capital
Around 95% of potash produced
costs. It does not need to invest in
around the world is used in fertiliser for
upgrading or building the infrastruc-
agriculture. It has a direct impact on
ture. “The transport and logistics
the global food supply, and with the UN
infrastructure to get to the export stage
expecting the world population to
is first class,” says Locke. “Morocco is
reach 9.8bn by 2050 the demand for
a trading nation with incredible infra-
potash will only continue to increase.
structure. It’s certainly a leader in
Locke feels that as the global agricul-
Africa from an infrastructure stand-
ture space looks to increase its yield
point, even when compared to South
and production by around 70%, it will
Africa, and we benefit from that mass-
both control and protect the potash
ively with amazing roads to and from
market. “For the last hundred years
our location and general infrastructure
this market has been dominated by
at the mine site.”
a handful of suppliers who have shown e uro pe .busi ne ssc hief. com
EMMERSON PLC
themselves to be very disciplined when the price fluctuates. When prices rise, they increase production to bring the price back down,” he says. “When you combine this price discipline with the traditionally high barriers to entry – in the form of capex – you can understand why there have been virtually no new entrants to the market in the last five decades. The only way to guarantee entry to this market is through lower capital cost production, which is what Khemisset will bring.” The traditionally controlled potash market has allowed companies like Emmerson to look at existing and successful potash operations in great detail. In particular, Locke has been able to better understand the structure of the market in order to see whether Emmerson could compete – and
a lot of time looking at our competitors
indeed whether it should compete with
and those existing operations to
incumbents in the first place. He points
analyse the cost structures and what
to BHP as an example: the company
does and doesn’t work before embark-
has tried on three separate occasions
ing on this journey.”
to enter the potash market, all of which
This approach allowed Locke and
have proven unsuccessful. “This is the
Emmerson to identify two clear prereq-
world’s largest mining company and
uisites to success: capital cost to
they could not get past those barriers
production, and location relative to
to entry, so you really need to take a
customer and end prices. With
different viewpoint,” he says. “We spent
Khemisset he believes that the
MARCH 2019
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“IT’S A FAIR AMOUNT OF WORK TO GET THROUGH BUT WE’VE GOT LOFTY AMBITIONS” — Hayden Locke, Executive Director, Emmerson
245
company has “ticked both boxes” and
our competitive advantage against our
can focus on its key markets of
incumbent peers.”
northwest Europe, South Africa, Brazil
An international mining operation,
and North America accessed through
regardless of the attractiveness of its
New Orleans, Louisiana (NOLA). “I call
cost structure and location, requires
it the Atlantic corridor,” says Locke. “It
local partnerships in order to succeed.
accounts for around 65% of global
Locke believes this is absolutely
potash consumption. This is where we
fundamental as local partners can
will focus our attention because of our
provide crucial input regarding local
strategic conclusion on where we can
market economics. Emmerson is
compete and where we can maintain
currently identifying and streamlining e uro pe .busi ne ssc hief. com
EMMERSON PLC
its supplier network and Locke approaches this with a knowledge sharing mindset. “Having local partners of size and scale to be able to support you and give you the right answer and provide you unfettered service and access to whatever it is you need is fundamental to success,” he says. “It’s very, very difficult to succeed in Africa without strong local partnerships.” Locke says another area which is fundamental to success is identifying partners with strong technical expertise. “Technical expertise is hard to 246
come by, especially in potash. It is important to identify those groups and work with them as early as possible. One example is our drill contractor, Drillon, who has proven itself to be an exceptionally professional and technically competent partner for our current drilling campaign”. The next 12 months will be pivotal for Emmerson and the Khemisset project as the company is currently working to acquire its mining licence, deliver an environmental social impact assessment (ESIA), and conduct and complete a definitive feasibility study (DFS). The company has commenced a drilling programme to upgrade its resource MARCH 2019
MINING
estimates and, according to Locke,
“THE TRANSPORT AND LOGISTICS INFRASTRUCTURE TO GET TO THE EXPORT STAGE IS FIRST CLASS”
“cement the confidence that we have in
— Hayden Locke, Executive Director, Emmerson
a broader African fertiliser story. Locke
the numbers and technical characteristics of the ore”. “Ideally we will have delivered on most of that this year,” he adds. “It’s a fair amount of work to get through but we’ve got lofty ambitions.” Khemisset looks set for a mid-2022 production phase, when Emmerson will cement itself as a key driver of believes that the company will achieve its targets because of the time it has invested so far in getting it right. “Achieving that will be a testament to the work that we’ve put in,” he says, “and because we’ve been through the process a number of times we know exactly what we need to do.”
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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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