EUROPE EDITION MAY 20 19 europe.businesschief.com
DISRUPTIVE TECHNOLOGIES, OPERATIONAL EFFICIENCY
Supply chain excellence
An efficient sustainability transformation
EXCLUSIVE VIDEO
AN AGILE TECHNOLOGY TRANSFORMATION COO Stephen White on laying innovative digital foundations
City Focus
DÜSSELDORF
Architecture, industry and more…
Universities that mean business
FOREWORD
W
elcome to the May Issue of the Europe edition of Business
AB InBev, Accenture, CBRE, DNB, ERGO, and Paddy Power Betfair all
Chief Europe!
feature in this month’s edition, with
On the cover of this month’s maga-
features regarding sustainability, pro-
zine, Yorkshire Building Society’s
curement and digital transformation.
COO and Executive Director,
This month’s City Focus looks at
Stephen White, discusses
all Düsseldorf has to offer for
agility and innovation
business. The city’s
within the firm’s opera-
award-winning architec-
tions – complete with
ture and the manufac-
exclusive video content.
turing industry define
“YBS has been around for over 150 years, and I want to make sure it’s
Stephen White, Yorkshire Building Society
around for the next 150 years,”
the capital of Germany’s most populous state. For May’s top 10, Business Chief looks at Europe’s top
says White. “Therefore, we have to
10 Universities to study a Master of
evolve.” In order to evolve, YBS has
Business Administration.
developed an innovation centre which takes pride of place within the business. Business Chief also talks to the cofounder and Chief Procurement
Enjoy the issue! Sophie Chapman sophie.chapman@bizclikmedia.com
Officer at Denmark’s Tradeshift about its marketplace concept that works beyond the regular limits of procureto-pay. e u r o p e . b u s i n e s s c h i e f. c o m
03
15-16 May 2019 InterContinental London – The O2
700+
senior procurement attendees
150+
global 5000 companies
$6 tn
annual combined spend under management
The agship event of World Procurement Week, the ultimate team experience! Learn more and book now at worldprocurementcongress.com
EUROPE EDITION EDITOR-IN-CHIEF
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OLIVIA MINNOCK
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CONTENTS
LEVERAGING AGILITY FOR AN INNOVATIVE TECHNOLOGY TRANSFORMATION
10 38
48 MAKING THE CASE FOR CYBERSECURITY INVESTMENT
Procure-to-Pay Reimagined
How to win the war for skilled talent
56 68
80 DĂœSSELDORF
Bringing greener cities to life through connectivity and innovation
City Focus
92
TOP 10
Universities in Europe for MBAs
CONTENTS
106 BKW AG ERGO
146 AB InBev
128 DNB
168 Paddy Power Betfair
182 CBRE
218 Accenture
204
234
Danone
TC Transcontinental
10
LEVERAGING AGILITY FOR AN INNOVATIVE TECHNOLOGY TRANSFORMATION WRITTEN BY
OLIVIA MINNOCK PRODUCED BY
JAMES PEPPER
M AY 2 0 1 9
11
e uro pe .busi ne ssc hief. com
YORKSHIRE BUILDING SOCIET Y
COO and Executive Director Stephen White and the team at Yorkshire Building Society discuss how the 154-year-old organisation continues to serve customers and communities through staying agile and fostering an innovative, collaborative workplace 12
“Y
BS has been around for over 150 years, and I want to make sure it’s around for the next 150 years,” says
Stephen White, COO of Yorkshire Building Society. “Therefore, we have to evolve.” That’s exactly what YBS has done – described by Director of Transformation Paul Howley as a “goldilocks organisation”, one large enough to invest in new tech and initiatives to best serve customers, but small enough to experiment, collaborate and innovate. YBS has transformed over the past few years to focus on the areas where it excels and to achieve operational excellence. “We have a very clear business strategy to be a mortgage and savings provider – we know the products and we know the customer demographic,” says Portfolio Delivery Manager Ben Sampson. M AY 2 0 1 9
STEPHEN WHITE, CHIEF OPERATING OFFICER AT YORKSHIRE BUILDING SOCIETY ON WHY COLLABORATION IS VITAL
A few years ago, YBS was chasing the tail of ‘big banks’, but CIO Kevin Hunter says priorities have changed. “There was a realisation that we’re a building society and we’re very good at mortgages and savings.” Now, YBS operates with the clear aim of being a leading mortgages and savings provider, with every new initiative from automation to agile methodology put in place with the customer in mind.
A TRADITIONAL FINTECH? ‘Building society’ may sound like a musty, traditional term, but Head of Innovation e uro pe .busi ne ssc hief. com
13
Between a storied past and a smart future there’s a bridge. The Port of Rotterdam is one of Europe’s most established ports. And with 467 million tons of cargo moving through its docks every year, it’s also the largest. Ensuring the safety of billions of dollars of goods is no small task, which is why they asked Cisco to network the entire port — generating and protecting terabits of data they use to make every aspect of their operation run smoothly, predictively, and securely. If you can imagine it, we will build the bridge to get you there. cisco.co.uk/bridgetopossible
Disrupt or be disrupted... but how? Today, every business is a digital business and our customers are transforming by leveraging digital technologies to create: • New customer experiences - 9 out of 10 companies are competing primarily on customer experience4, • Innovative business models to improve performance - 23% faster time to market is achieved with digital processes in manufacturing5 • Empowering workforce experiences - 50% jump in earnings per share happens with 10% increase in employee satisfaction4 The need to change is well understood and digital companies are 26% more profitable and achieve 12% higher market valuation than their competitors2. However, too many companies see transformation as an episode they must endure, just like weathering a storm. Organisations are continually transforming, and business model reinvention occurs on average every 1 – 3 years1.
To have a real impact a connected approach to change is needed – operate within the Orchestration Zone. Organisations have to conduct transformation just like an orchestra playing a symphony. Start with guiding objectives of the transformation that you are hoping to drive. 1. What is the value creation opportunity (Cost Value, Experience Value, Platform Value). 2. What is the strategy - harvesting (winding down), retreating (exiting), disrupting (disrupt your own business or create a new market) or occupying (outcompete rivals) a market. Just like an orchestra there are different sections and instruments. Go-To-Market (Channels, Offerings), Engagement (Customers, Partners, Workforce) and Organisation (Structure, Incentives, Culture). Think about enabling connections and mobilising resources. Businesses need digital business agility, which consists of three core attributes all delivered securely…1:
$2.1Tn is being spent on digital transformation in 20196, but our customers are struggling with the ‘how’ to transform and recent research suggests that only 5% meet or exceed expectations of the business3.
1. Hyperawareness – sensing changes in the company’s environment, workforce and customer base. Cisco Collaboration, IoT – connected service business etc… 2. Informed Decision Making – Know what to act on! Cisco DNA and AppDynamics insights and analytics; 3. Fast Execution – Automate the response. IT assets, need to be dynamically orchestrated, and shifted quickly and seamlessly when priorities change. Cisco Multicloud, programmable and software defined infrastructure.
Cisco alongside our partners are helping customers to evolve their infrastructure to achieve digital business agility – the capacity to change, raise greater awareness of the threats that disruption presents whilst maximising the opportunity of seeking new forms of value.
Why choose Cisco for digital transformation? Cisco gives you a solid foundation for digital transformation. We bring software, processes, and systems together in a digital-ready infrastructure that is simple, intelligent, automated, and highly secure.
Cisco is focussing more on how we become the Secure, Intelligent Platform for Digital Business. Just like a building, a digital business needs strong foundations and we describe these as the 5 technology pillars.
• Simple - Our products and services are cloud ready with flexible consumption models • Intelligent - We provide analytics to unlock the value of data. Its insights will help you make rapid decisions; • Automated - We can automate many parts of your business to help you become more lean and agile; • Secure - We help secure your infrastructure from end to end so you can detect and remediate threats quickly.
• • • •
Intent-based Networking – simplify and scale networks Enabling the Multi-Cloud World - productionise cloud. Unlock the Power of Data – better decisions faster; Personalise customer and employee experiences – new customer experiences; • Security Everywhere - reduce business risk How should businesses execute digital transformation? Fundamentally, transformation is change, which is inherently difficult and, in general, businesses are risk averse and take a traditional approach to change management. - silo’ed initiatives and small-scale pilots. The transformation dilemma exists as organisations are entangled, just like a knotted rope, by three characteristics1: scale, interdependence and dynamism.
Watch Now: A secure, intelligent platform for digital business.
Sources: 1. Global Centre for Digital Business Transformation (Cisco & IMD) 2. MIT/CapGemini 3. Bain & Company “Orchestrating a Successful Digital Transformation” 4. Gartner 5. SCM World 6. IDC https://www.idc.com/getdoc.jsp?containerId=prUS44440318
YORKSHIRE BUILDING SOCIET Y
“ We’re now working much more closely with partners to drive solutions, but also to challenge our own thinking” 16
— Darren Newbould, Head of Technology Operations
Delivery Natalie Juryta argues the institutions are innovative by their very nature. “We talk about crowdfunding today,” she begins. “Building societies were stated by individuals who pooled money together until each owned their own home. That was innovation – it’s at the heart of who we are.” In addition, a key part of modern fintech is to cater for financially underserved customers, and YBS supports people who might be turned away by bigger providers (such as the self employed) to get on the property ladder. “We are carrying on that purpose 154 years after we started,” says Howley, and indeed YBS still views itself as a community focused building society, no matter how much growth and innovation it undergoes. For example, YBS has partnered with End Youth Homelessness (EYH), raising £424,000 in 18 months to support over 107 young people into their own home. Its member-led community focus also makes YBS more thoughtful with its spending. “Every pound we spend is a pound of our members’ money,” Howley comments. “We strive to have real respect for our members, which
M AY 2 0 1 9
STEPHEN WHITE, CHIEF OPERATING OFFICER AT YORKSHIRE BUILDING SOCIETY EXPLAINS THE IMPORTANCE OF HAVING A COMMUNITY BANK
means getting the best value out
fintech challengers and innovations
of any investment. It drives a culture
have been focused on current
of responsibility throughout the
accounts and payments. Now, we’re
organisation.”
seeing mortgages become essentially a digital business,” he comments.
A CHANGING LANDSCAPE
Across the board, consumer expecta-
With its refreshed focus, YBS has
tions are on the up – and as Juryta
looked to evolve within a changing
stresses, competition isn’t just coming
financial landscape while still keeping
from other banks or building societies.
what’s important in mind. Digital
“We are consumers of products and
disruption is “only just starting” in the
services, and the things that used to
mortgage and savings market, says
mark those out don’t exist anymore,” she
Director of Digital & Innovation Ant
explains. “Organisations like Apple and
Warrington, and YBS is keenly aware of
Google are blurring the lines, and we’re
the long journey ahead. “For years,
thinking about finance in a different way.” e uro pe .busi ne ssc hief. com
17
GEP Drives Digital Transformation of Procurement and Supply Chain for YBS
Yorkshire Building Society (YBS) and GEP have a strong partnership that has enabled YBS to define its digital procurement strategy and launch tech-driven transformation. Together, the two companies have created an agile, flexible procurement and supply chain function that helps YBS gain a competitive edge and drive innovation.
YBS sought a procurement partner capable of delivering end-to-end, source-to-pay (S2P) solutions — strategy, services and technology. It chose GEP for the depth, breadth, and effectiveness of its solutions — and for its established track record as a digital pacesetter. The choice was quickly validated; the good chemistry between the two firms rapidly produced a multi-pronged strategy focused on technology deployment, process redesign and organisational restructuring — with a vision of achieving 360-degree procurement and supply chain transformation.
Redesigning the Procurement Organisation GEP worked with senior stakeholders at YBS to enable cross-functional collaboration and bring source-to-contract (S2C), SRM, contract management, procure-to-pay (P2P) and technology all under the single umbrella of procurement. Aligning category experts with each business unit gave the YBS procurement organisation a better handle on its spend. Optimising Processes for Enhanced Performance GEP collaborated with the YBS team to deliver enhanced productivity by identifying and tackling process gaps in areas including sourcing, spend management, contract management and category planning. Together, the teams also instituted 360-degree risk scans for every procurement engagement — significantly reducing business risk. Enabling Technology-Driven Transformation Implementation of the AI-driven SMART by GEP ® procurement platform played a pivotal role in this transformation initiative. Powered by SMART by GEP, YBS gained an agile and highly automated procurement function with streamlined procurement processes, unobstructed enterprise-wide visibility into the procurement chain and robust reporting capabilities. Transforming Procurement, Redefining Outcomes GEP helped YBS succeed in transforming not only its procurement organisation, but the way that organisation was viewed by the rest of the business. Crucially, the procurement team achieved the trust of its business users — a trust that those users, in turn, were better empowered to gain from the firm’s customers.
290%
Jump in Savings Achieved
400%
Increase in Supplier Coverage
100+
Users on SMART by GEP
200+
Suppliers Enabled on SMART by GEP
Special Project: Business Consulting PSP – Sourcing
Special Project: Digital Transformation – SRM, Sourcing
YBS GOAL: Reduce spending with Tier 1 consulting firms.
YBS GOAL: Identify and engage suppliers of enterprise-wide, sustainable digital transformation solutions.
WHAT GEP DID: Identified consulting firms that could address multiple business needs in a single sourcing engagement and implemented a flexible model to enhance P2P model longevity. WHAT YBS GAINED: More than 5 percent in savings, improved governance over usage of Tier 1 consultants, and preferential treatment as a key account for these firms.
WHAT GEP DID: Analysed spend data using SMART by GEP to pinpoint high-priority areas for transformation and assess overall benefits. WHAT YBS GAINED: A select group of new suppliers, onboarded by GEP, capable of delivering sustainable transformation with the added bonus of ~15-20 percent savings.
“YBS and GEP have created a co-sourced supply chain team that has been at the heart of delivering real help for our members and customers. Over the last three years, we have moved from a reactive supply chain function to one with capabilities to anticipate our customers’ requirements well in advance and collaborate with relevant suppliers to meet these requirements. Our supplier risk management capabilities have also been transformed through technology and best-in-class processes to ensure that we are protecting our customers and colleagues. The blend of YBS colleagues with a fantastic service and value for money ethos, combined with the GEP expertise and knowledge, has proven to be a winning recipe for us.” – Paul Howley, Director of Transformation, Yorkshire Building Society
YORKSHIRE BUILDING SOCIET Y
20
INDUSTRY LEADING AWARDS
delivering cost reduction, improving
To adapt, survive and thrive, YBS has
NPS and enhancing the service we
already made leaps and bounds toward
deliver,” says White, speaking in an
a digitally driven financial future. Having
office littered with trophies and awards
been awarded Best Mortgage Lender
at every bank of desks.
for its Accord brand last month at the
“We’re not finished on that journey
Mortgage Strategy Awards, with the
yet. We’re through part one. Part two
Accord broker residential mortgages
will take us into 2020, when we’ll
NPS having grown from -11 in July 2015
complete our new mortgage platform
to +84 in February 2019 – a truly industry
and introduce a new digital platform.
leading transformation. Other awards
We’ll also add digital support into our
include ‘Most Innovative Approach to
branches to create a blend of branch
Driving Cultural Change’ at the Global
and digital, as well as reducing our
Process Excellence Awards 2019.
cost base while continuing to deliver
“The last three years have been really
more options and better service for
successful in laying the foundations,
our customers.”
M AY 2 0 1 9
AN AGILE TRANSFORMATION
innovation to lead the culture transfor-
To continue its legacy of supporting
mation of YBS.
communities as well as being proactive
White is joined at the Leeds office
in competing and innovating across
by a cardboard cut-out called James.
a new market, it’s important YBS puts
James is YBS’ ‘customer in the room’,
the proper foundations in place. White
present in meetings to ensure teams
has led a significant restructure to
remain conscious of the impact their
streamline operations and foster
ideas and decisions will have on the
a culture of innovation and teamwork.
customer. Even for a C-level exec, it’s
“It was about ensuring we had the right
an important reminder. “We’ve done
structure to take the organisation
all this change – branch closures,
forward in an agile way,” he explains.
brand closures, system migrations,
White has taken his learnings from five
investments – while still maintaining or
years in Asia and Australia earlier in his
improving customer satisfaction,” he
career and used this experience of
says. “That’s why we’re here: to have
E XE CU T I VE PRO FI LE
Stephen White Stephen White is COO and Executive Director at Yorkshire Building Society Group; he is also the Chairman of the YBS mortgage broker Accord. Having joined the company in February 2016 he has been involved in a significant culture shift surrounding the group’s technology transformation journey to promote innovation and better serve its customers. Prior to his role at YBS, White was Group Chief Operating Officer for Allied Irish Bank (AIB). He also brings a plethora of experience from the innovative Asia Pacific region, with eight years at National Australia Bank under his belt.
e uro pe .busi ne ssc hief. com
21
DELIVERING SIMPLY BRILLIANT CUSTOMER EXPERIENCES
Drive value and create customer loyalty through AI powered, omni-channel contact centre solutions. Be your business’ chameleon for change. START YOUR TRANSFORMATION
Modern Digital Solutions for Financial Services The pace of change occurring in the financial services sector is phenomenal, with a noticeable shift towards becoming digital-first in the quest for delivering simply brilliant customer experiences. Financial service institutions are in constant competition for customers. With increasingly standardised product sets they are forced to differentiate their offerings through customer experience, putting enormous pressure on customer facing operations such as contact centres and branch networks. Financial services have a powerful motivator to optimise digital omni-channel performance. They must deal with evolving service expectations of today’s online, mobile and social network enabled customers. Those which have already invested and simplified the experience offered to customers are finding efforts rewarded by increased loyalty, market leading Net Promotor and Customer Effort Scores. Yorkshire Building Society Group (YBSG) are the UK’s second largest building society, with over 3 million members and assets of £43 billion, who through a customer driven culture have developed a market leading brand for customer excellence and quality. YBSG are passionate about delivering simply brilliant customer experiences to members, using technology to enhance market differentiation and to underpin their continued leadership. YBSG have made a significant investment in a modern, digital cloud contact centre platform and unified communication service to support their customer facing, back office and branch environments. Following a detailed market assessment, which saw YBSG evaluate 15 potential providers, Olive were invited to spend time with YBSG, carrying out operational and technical assessments over a 6-week period. This collaborative approach provided Olive with a deep understanding of YBSG’s existing technical environment, their current operational model and requirements for the new service. This insight enabled Olive to design a service that is closely aligned to YBSG’s digital and customer first strategy. At the heart of the service being delivered to YBSG is Olive’s Cloud Managed Service Platform (CMSP). The platform is a customer engagement ecosystem, providing secure and simple access to best of breed
contact centre tools that are delivered as a single cloud service, aligned to tailored YBSG user personas. Olive’s CMSP inter-connects into Mitel’s market leading Cloud platform, integrating leading services from Redbox, Teleopti and Eckho. All customer applications will be deployed in a separate “private” cloud environment, providing the most secure and resilient cloud service available in the market whilst meeting YBSGs security requirements. The service supports YBSG’s digital ambitions and will enable them to deliver consistent customer satisfaction across all customer touch points including; voice, e-mail and chat. Designed to improve the customer experience is a speech enabled front door, allowing customers to seamlessly navigate through to the right contact centre colleague first time, avoiding the frustration of redirection and repeated conversation. The service also includes innovative automation capabilities, delivering modern self-service opportunities using innovative speech and AI capabilities. Once implemented, YBSG will benefit from a cost effective, highly resilient, agile contact centre and telephony service that meets the demands of the business today but can evolve as the needs of their members change. Through Olive’s CMSP, YBSG will consume the customer interaction tools they need to deliver simply brilliant customer experiences, removing duplication, complexity and cost whilst ensuring that they have the agility to scale and flex in-line with operational requirements. Olive, an award-winning Cloud Managed Service Provider and Mitel Platinum Solutions Provider, has a track record of success in delivering modern digital solutions for financial services – supporting all aspects of the modern digital customer journey. Working with leading organisations such as Reassure, 1st Central Group and One Family; Olive has deep industry experience of the key drivers impacting customer experience delivery in the financial services sector.
LEARN MORE
STEPHEN WHITE, CHIEF OPERATING OFFICER AT YORKSHIRE BUILDING SOCIETY. HOW TO HAVE AN AGILE ORGANISATION
a genuinely positive impact on our
hierarchy: we need people to feel they
customers’ lives.”
can be innovative and that it’s OK to try
“Structurally a lot has changed,” adds
something and fail on a small scale.”
Hunter. “At my level, we went from 45
“We’ve also started to implement a new
down to 15. That’s significant: if you talk
‘culture journey’,” says Juryta. “We create
about an agile way of working, 45 people
cultural ambassadors to help nudge
at director level trying to make a decision
the culture in the right direction. Regula-
is very difficult.” Throughout the organi-
tion has driven a tightly controlled
sation, silos have been turned into ‘tribes’
organisation which stifled creativity,
and Kanban boards keep everyone on
but we have helped people feel they
task. “For a business to become agile,
have a voice and it’s OK to speak out.
we need a culture that is transparent,
Our CEO Mike Regnier encourages
challenging and empowers people to
people to ask for forgiveness rather
take ownership,” says Sampson. “We
than permission – that’s a very power-
don’t want too much structure or
ful statement.” e uro pe .busi ne ssc hief. com
25
YORKSHIRE BUILDING SOCIET Y
“ Innovation is at the heart of who we are” — Natalie Juryta, Head of Innovation Delivery
THE INNOVATION CENTRE This philosophy comes in physical form too, with YBS’ glass-walled innovation centre located at the front of its office, open to colleagues and the public. “We were conscious for it not to just be seen 26
as an IT initiative,” says Newbould. Created over seven weeks, the centre is a testament to the creative, agile nature of YBS colleagues. “We had 40-odd events there last year, and only a handful were solely IT,” says Hunter. “Having a place to go which isn’t anyone’s patch – a common ground – is really important. I’m not a technologist – I’ve got a business process background. I say to people if they can think it out in their heads, it’s technically feasible, so focus on the problem that needs to be solved and go from there –we’ll fit the technology around it.” “Lots of teams use the innovation centre to solve problems,” adds White. M AY 2 0 1 9
“We haven’t given them objectives or a template: we’ve given them the environment, technology, equipment and space to think differently. You have to create a culture where people feel they can win fast and fail fast. Leaders need to learn to let go,” he adds. “If you create the framework and culture, you can step back and let people create that leadership, which develops agility and better governance.” In addition to the innovation centre, YBS organises regular ‘hackathons’. “We’ve created a methodology and then smaller hacks happen in different business areas,” Juryta explains. She adds that White as COO has been a true ‘catalyst’ for innovation at YBS, and that communicating end goals to each member of the organisation is key to moving forward. ‘Our Story’ at YBS introduces staff to the society’s ‘five to thrive’ priorities, and each department and individual thinks about where their role fits to align with these objectives, forming what Hunter describes as a ‘golden thread’ throughout the organisation. “If the guys running the IT desk can’t see themselves in that ‘five’, we haven’t moved forward,” he explains. e uro pe .busi ne ssc hief. com
27
YORKSHIRE BUILDING SOCIET Y
28
M AY 2 0 1 9
MOVING TO DIGITAL
organisation takes a business and
The right culture must be enabled by
solution led view. “We do a lot of proof
the right technology tools, which are
of concept pilots,” says Sampson. “We
leveraged at YBS internally and
start small, and get to something that
externally. White is keen to stress,
either proves a business case or doesn’t.
however, that digital won’t replace
If it’s going to fail, we want it to fail fast.”
the human touch. “It’s about offering
Automation and robotics have been
flexibility of choice. We believe in our
used to optimise processes. “We have
migration to digital, but it’s not about
a number of robots deployed to improve
‘either/or’, it’s about ‘and’. We’ve stream-
speed and accuracy or processing,”
lined branches and added technology
says Head of Technology Operations
but we still believe in having our mem-
Darren Newbould. “That drives direct
bers served by people and we believe
business benefit into some tasks which
in our colleagues.”
were originally done manually, taking
With a world of tech at its fingertips,
agents a number of hours. We’re building
YBS might be tempted by shiny new
on that capability as we speak,” he adds.
objects like RPA, AI or IoT, but the
Juryta also believes artificial intelligence
e uro pe .busi ne ssc hief. com
29
YORKSHIRE BUILDING SOCIET Y
30
M AY 2 0 1 9
“ For a business to become agile, we need a culture that is transparent, challenging and empowers people to take ownership” — Ben Sampson, Portfolio Delivery Manager
e uro pe .busi ne ssc hief. com
31
YORKSHIRE BUILDING SOCIET Y
32
will be vital moving forward. “AI can help
great work that has been done – not
increase efficiency and accuracy of
with heavy infrastructure projects but
oversight so we can make sure we’re
more nimble, digital, paperless, self-
delivering on the front line in the best
service… looking at the efficiency of
interest of our customers,” she explains.
the organisation and really transforming
“In the last five years, we’ve invested
a lot of the services our members want.”
in lots of new capabilities, a lot of
New technology YBS puts in place is
infrastructure work and tackling legacy
added to a reliable existing system
IT issues,” says Howley. “The next five
which has seen no unplanned
years is about springboarding on the
downtime in over a decade. “We’re
M AY 2 0 1 9
1864
Year founded
4,500
Approximate number of employees 33
replatforming our applications – our
foundation to build a digital business
core banking and all the subsidiary
on top of.”
applications that support that – from “That will enable us to use cloud technol-
COLLABORATION ACROSS A CHANGING LANDSCAPE
ogy – our new technology platform will
“Change will not be successful if we
be cloud based. This is important for
don’t bring the right parties on board,”
us in reducing the cost of IT and change
says Howley. “We very much take the
going forward, as well as improving
view that we’re looking for partners, not
operational resilience. It’s an important
just suppliers. A partner is a specialist
HP US to Red Hat Linux,” says Hunter.
e uro pe .busi ne ssc hief. com
YORKSHIRE BUILDING SOCIET Y
in their field who we want to collaborate with to understand the best way of delivering business outcomes. We work with some great international players as well as an ecosystem of partners based in Yorkshire. We have a mutual respect and culture because we don’t just dictate what we want – we ask for support and help. Our colleagues join us in our societal purpose and so do our partners.” Notably, YBS partners with technology giant Cisco, Mitel and Olive for cloud and communications, GEP for 34
procurement and supply chain software, IT consultancy giant TCS, and business process outsourcing advisory WNS.
“ We’re seeing mortgages become essentially a digital business” — Ant Warrington, Director of Digital & Innovation M AY 2 0 1 9
“I believe strongly in the view of the ecosystem,” says White. “When we choose partners now, we go through a very strict procurement exercise to ensure they’re right for us and can show us appropriate case studies, so it’s tried and tested.” For Newbould, communication is key. “We work best when we’re open with our agenda, our digital transformation and our technology journey,” he comments. “The second point is to recognise we don’t have all the answers. All the
35
experts aren’t necessarily within our
passionate about serving the community.
own organisation and we need support
As fintech challengers emerge and
and strategic direction from outside
innovations are developed to keep up
the business. We’re now working much
with growing consumer expectations,
more closely with partners to drive
YBS’ societal commitment is a solid
solutions, but also to challenge our
foundation that will not be swayed.
own thinking.” In order to keep thriving for the next 154 years, Yorkshire Building Society must remain nimble, agile and innovative while not forgetting its roots. YBS is there to improve people’s lives, and each member of the organisation is e uro pe .busi ne ssc hief. com
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LEADERSHIP
38
Procure-to-Pay Reimagined Tradeshift was conceived in response to the need for a global open business platform. Business Chief Europe hears from co-founder Gert Sylvest and CPO Roy Anderson on how the Danish company’s revolutionary one-to-many approach creates a dynamic and integrated marketplace filled with services WRITTEN BY
DAN BRIGHTMORE INTERVIEWED BY
SOPHIE CHAPMAN
M AY 2 0 1 9
39
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LEADERSHIP
T
radeshift was built on a vision: to connect every business across the globe. With its roots in Denmark, Gert Sylvest – and his co-founders
Christian Lanng and Mikkel Hippe Brun – dreamt of creating an open business platform for the whole
world, not just Europe. By marrying social technology concepts with hard transactions to bridge major digital divides, Sylvest believes Tradeshift has developed a platform that transforms the way businesses can work together; capable of taking them “from broken to efficient, from complicated to simple, from archaic to modern,” as the company describes itself. 40
Today’s technology devours supply chain bandwidth making it tough for firms to put new tools in place. Tradeshift’s marketplace concept frees them up to embrace value-added innovation and collaborate on solutions beyond the regular limits of procureto-pay. Inspired by peer-to-peer networks, Skype and file sharing, Sylvest and his co-founders chose to build on open servers and open source software. This allowed them to provide the market with useful tools for both business to commerce and business to business. Following the rapid adoption of EasyTrade, Tradeshift’s forerunner which welcomed 60,000 companies in just 10 months, Sylvest noticed something interesting was happening: “We saw an ecosystem spring up, with people offering software and integration on top.” The company rolled out M AY 2 0 1 9
“ We saw an ecosystem spring up, with people offering software and integration on top” — Gert Sylvest, Co-Founder, Tradeshift
41
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LEADERSHIP
similar infrastructures across the
SMEs to get access to financing at
Nordic region before connecting over
a reasonable price?” he pondered back
30 member-states across Europe.
then. “With no transparency in how
“It showed that you could connect
they are running their businesses and
whole supply chains or even countries
their access to markets, it’s difficult for
and regions, at scale, and move them
them to show the quality of their
from paper-based to digital trades,”
relationships and what they produce.”
says Sylvest.
42
Tradeshift moved away from selling
This proved to be the genesis of
to governments, switching focus to the
Tradeshift in 2010. “Instead of making
Fortune 5000 sector. “We started by
money on the transactions, we thought
selling accounts payable automation,
about connecting companies and
moving on to include the whole source-
networks to create transparency in
to-pay cycle, product information
those transactions, which became the
management, procurement and
inherent value,” he recalls, maintaining
financing on top of these transactions,”
everything revolved around access
he adds, noting SMEs in the supply
to finance. “Why was it so hard for
chain can get the same software and
M AY 2 0 1 9
CLICK TO WATCH : ‘COMMERCE FOR ALL’ 43 the ability to on-board their buyers
ment. “At MetLife, we had 18,000
and suppliers. Allied to this was the
suppliers. And getting the top 200
opportunity to receive early payment
digitally connected was a big success.
and get finance in if they were willing to
Moving paper-based suppliers into
share their transactions with the banks.
a digital environment and being able to
Tradeshift now boasts more than
build value-added services like, supply
500 of the Fortune 5000 enterprises
chain financing, improved pricing
on the platform along with 1.5mn
structures and logistics information,
companies across the network including
with AI on top, is a transformational
early customers such as Keuhne +
event,” adds Anderson.
Nagel, Citibank and Capgemini. “They’re
Tradeshift is now being utilised by the
moving roughly $500bn annualised in
big banks, including HSBC, who create
transaction volumes,” reveals Sylvest,
financing apps on the platform in free
whose Chief Procurement Officer Roy
competition. With the expansion into
Anderson applauds this huge achieve-
procurement, it supports companies e uro pe .busi ne ssc hief. com
LEADERSHIP
who want to reject the Amazon approach and manage their own marketplace, buying into the full platform edition, connecting everything from sourceto-pay. “As well as a platform where banks can deploy their own existing applications inside of their supply chain, they can utilise one of our 300 apps to link with everything from direct materials and forecasting to C O M PA N Y I N F O
Unlocking the tech chain 44
Tradeshift aims to lower the barriers enabling companies to participate with emerging technologies while increasing transparency to improve financing options. To that end, it created a product called Tradeshift Cash as a value proposition for SMEs. They might have good relationships and deliver to large customers but they still struggle with financing. “The idea was simple,” explains Sylvest. “With transactions digitised, we put them on the blockchain and tokenise them. Sending off an invoice in
M AY 2 0 1 9
a thousand small invoice coins and then make financiers compete for access to those coins. The seller gets paid on day one, while financiers get easy access to a volume of receivables largely in paper-based form. But we could offer it digitally and then push down the price over time for the access to this kind of financing.” To take the concept a stage further Tradeshift is currently developing a wallet capable of holding digital assets that are part of a trade, as well as money.
45
forming a collaboration with a vendor,”
the manufacturer from the buyer and
adds Sylvest.
becomes the connection. Anderson
Tradeshift will soon be rolling out
believes these are not as valuable
marketplaces: “The old marketplaces
in the B2B sphere. “Connecting the
were basically a list of content
supplier and the buyer enhances
at a price point, but the Tradeshift
quality, service, delivery and innovation.
marketplace content is about one-to-
It’s all part of the value proposition
many relationships. The connections
they create,” he asserts.
are digital, easy to manage and
Dynamic, and personalised to
maintain, but the relationship stays
a buyer’s needs, Anderson envisages
between a buyer and a supplier,”
ground-breaking marketplaces for
explains Anderson. There may be
healthcare, retail environments, facilities,
many content related marketplaces
recycling and precious metals, or
out there, but the intermediary separates
marketplaces by location and category e uro pe .busi ne ssc hief. com
LEADERSHIP
type. “It’s possible to build an ecosystem of suppliers and services within a marketplace, then a company can plug into it and build their influence and scope of management,” he notes. Sylvest believes the root of Tradeshift’s wider business strategy begins with procurement. Highlighting the efficiency gains achieved with automation and source-to-pay digitisation, he’s proud of the steps made towards achieving true visibility throughout the cycle from purchase order to goods received. “We’re showing you can do things 46
differently to Amazon by offering companies the capabilities to build their own marketplaces and inherit the rich history of their suppliers instead of a singular view on driving cost as low as possible,” he remarks. Anderson adds that to make procurement operations more efficient, Tradeshift is bringing applications into the marketplace that are integrated, connected and include internal and external communication. “You can get better decisions made faster and use applications that are specifically tied to the services required,” he says. With suppliers M AY 2 0 1 9
“ Moving paperbased suppliers into a digital environment… is a transformational event” — Roy Anderson, CPO, Tradeshift
looking to create synergies Anderson, ever the evangelist, sees Tradeshift well placed to deliver: “Now, our goal is not only to offer more connections with new buyers, but allow you to tie your internal buyers to that supply chain to feed a connection that’s going to add more value to your delivery and your customers.” Believing it’s now possible to reengineer an entire supply chain he warns that any CPO not trying to digitally connect their supply chain, is going to be left in the dust: “It will change the whole structure of what is efficient and what is the best, highest quality supplier at the lowest possible cost structure.” Where does Sylvest see the company five years from now? “If 80% of the revenue being generated on this platform, and what is being delivered to customers, is created by people other than Tradeshift it would be a great measure of success and show how we could actually create value for an ecosystem.”
e uro pe .busi ne ssc hief. com
47
TECHNOLOGY
MAKING THE CASE FOR CYBERSECURITY INVESTMENT 48
Spencer Young, Regional Vice President EMEA at Cybersecurity leader Imperva explores how businesses need to take decisive action and address today’s complex cybersecurity threats WRITTEN BY
SPENCER YOUNG
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49
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TECHNOLOGY
50
2
018 turned out to be a significant
year for cybersecurity with breaches and attacks making
formal cybersecurity policies in place. While this discrepancy is worrying, it shines the spotlight on why business
the news far too often. In fact, a recent
leaders are yet to fully embrace the
report released by the Department
value of cybersecurity.
for Digital, Culture, Media and Sport
Although we’re in the era of digital
revealed that over four in ten businesses
transformation, many organisations
(43%) in the UK experienced a
are looking for guaranteed returns
cybersecurity breach or attack last year.
from their technology investments.
The same report goes on to highlight
Therein lies the problem – with
that despite the growing number of
increasingly tight budgets, senior
cybersecurity threats and attacks fewer
leaders view of cybersecurity systems
than three in ten businesses (27%) have
is currently framed as insurance. So,
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“ALTHOUGH WE’RE IN THE ERA OF DIGITAL TRANSFORMATION, MANY ORGANISATIONS ARE LOOKING FOR GUARANTEED RETURNS FROM THEIR TECHNOLOGY INVESTMENTS. THEREIN LIES THE PROBLEM” — Spencer Young, Regional Vice President, EMEA at Imperva
how do we shift this mindset so that
required to prepare for these new
senior leaders can better understand
compliance landscapes, they are
that the value of protecting business
putting security strategy decisions at
critical data extends far beyond just
the top of the priority pile of boards
covering your assets?
and exec teams. Board members, in particular, are
CYBERSECURITY AND THE BOARD
responsible for establishing good
In recent months, we’ve seen the
governance practices and policies for
introduction of new regulations such
driving better financial performance
as the EU’s GDPR, as well as
and growth. For this reason, it is vital
constantly shifting privacy laws in
that they have a comprehensive view of
nearly every geography. While there
their organisation’s cybersecurity
are considerable levels of effort
strategy, and the required level of e uro pe .busi ne ssc hief. com
51
TECHNOLOGY
52
“ A RECENT REPORT RELEASED BY THE DEPARTMENT FOR DIGITAL, CULTURE, MEDIA AND SPORT REVEALED THAT OVER FOUR IN 10 BUSINESSES (43%) IN THE UK EXPERIENCED A CYBERSECURITY BREACH OR ATTACK LAST YEAR” — Spencer Young, Regional Vice President, EMEA at Imperva
investment for buying down their risk. Where cybersecurity may have previously been considered one subset of operational IT, a cursory glance over the press clippings in recent years will have alerted them to the real challenge. A growing number of business leaders are awakening to the fact that a data breach is all but inevitable. What they need to know is, how they can limit the scope of damage from a data breach with the right level of investment.
STEP 1: MAKING THE CASE TO SENIOR LEADERSHIP As the levels of liability for failing to govern risk and protect critical data are transferred from the IT department to senior leadership, these leaders need a quantified measurement of risks including:
• Compromised customer data • Diminished brand and reputation • Loss of investor and consumer confidence and loyalty
• Stolen sensitive intellectual property • Compliance and regulatory sanctions • Business disruptions M AY 2 0 1 9
CLICK TO WATCH : ‘MEET THE NEW IMPERVA – DEFENDING YOUR BUSINESS GROWTH TODAY AND TOMORROW’
STEP 2: ASSESSING THE CURRENT SITUATION
The next step requires you to conduct a
Once these risks are quantified, due
thorough inspection of your current
diligence will require leaders to
security posture.
assess the steps their partners and
STEP 3: DO A COMPLETE AUDIT
This involves understanding where
competitors are taking to avoid
your critical data currently resides, who
exposure. Relationships with
requires access to it and more critically,
technology suppliers and lenders then
who actually has access to it.
become less transactional, and more
While it’s a drum we beat perpetually at
of a long-term advisory partnership,
Imperva, many leaders don’t understand
as they’re best placed to provide
the risks of a potential data breach by
advice on the current trends within
careless, compromised, and malicious
your marketplace.
insiders. Not all data assets carry the e uro pe .busi ne ssc hief. com
53
TECHNOLOGY
same level of risk, and not every employee should be given carte blanche access to all organisational data. While this may be time-consuming, leaving no stone unturned at this stage of the audit will give you a clear understanding of where your security measures stand currently and benefit you greatly in the long run.
FINAL STEP: DETERMINE THE RIGHT INVESTMENT FOR YOUR BUSINESS By appraising your data assets in 54
terms of their value and risk, you can then begin targeting your investments towards timely threat detection and incident response. No matter the time and effort invested, it is important to remember that data breaches are inevitable. Framing this approach as a risk/ reward equation and using a tiered security approach ensures that your organisation can protect high-value targets that would cause significant harm if they were compromised. At the very least, senior leaders need to be made aware of the growing threat they face every day from external cyberattacks and internal data M AY 2 0 1 9
“A GROWING NUMBER OF BUSINESS LEADERS ARE AWAKENING TO THE FACT THAT A DATA BREACH IS ALL BUT INEVITABLE” — Spencer Young, Regional Vice President, EMEA at Imperva
55 breaches. A single breach has the potential to irreparably damage the financial condition of even the most successful business, and ruin the careers of those leaders involved. Rather than packaging your cybersecurity spending rationale within IT investments, these really need to be highlighted as a high-level risk mitigation strategy.
e uro pe .busi ne ssc hief. com
PEOPLE
56
How to win the war for skilled talent THE SKILLS GAP IS OFTEN CITED AS ONE OF THE BIGGEST OBSTACLES FACING BUSINESSES TODAY. ARE YOU READY TO BEAT IT? WRITTEN BY
M AY 2 0 1 9
LAURA MULLAN
57
e uro pe .busi ne ssc hief. com
PEOPLE
T
hanks to technology, the way we work is set to change forever. You need only look at the impact of driverless
cars to see just how disruptive the next generation of technology will be. In fact, accord-
ing to a McKinsey Global Institute report, as many as 375mn workers (or 14% of the global workforce) might need to switch occupation categories because of digitisation, automation and artificial intelligence (AI). It’s a mammoth shift for workers, but it’ll impact business too. Tomorrow’s business leaders will need more 58
analytical, digital-savvy skills than ever before if they want to keep up with the blistering pace of digital transformation – but will companies be able to find these skills? Research by the Korn Ferry Institute forecasts that the existing talent shortage will reach its worst levels in 2030, whereby an expected 85.2mn job openings will go unfulfilled worldwide. In previous decades, the ‘war for talent’ dominated the headlines, but looking forward it seems that it will be the skills gap that will define the business agenda.
AN ANALYTICAL MIND Many tout data as ‘the new oil’, and as a result, data literacy has quickly become a highlycoveted skill for today’s business leaders. M AY 2 0 1 9
“We paired legacy employees with millennials and this helps to break down the paradigms you develop over decades of business. It makes the business open to new ideas” — Dayne Turbitt, Senior Vice President of Dell EMC’s Enterprise Sales Division
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PEOPLE
Gartner has even gone as far as to
exclusive interview with Gigabit, CEO
predict that, by 2020, 80% of organisa-
Adam Selipsky, said: “Recent estimates
tions will have to start to roll out data
from the IBC suggest that between
literacy initiatives to upskill their work-
now and 2025, the amount of data in
force. One such company, powering
the world that’s subject to analysis is
ahead with such training is data visuali-
going to grow 50-fold. I think a lot of
sation giant, Tableau Software. The firm
organisations are just going to get
recently launched Academics, a progr-
crushed under the weight of that data
amme that has helped around 680,000
whilst many others are going to see
students and faculties use Tableau’s
brand new opportunities to develop
software, and on top of this, it has also
insights and make better decisions
partnered with British training partner
based on all of that data. Regardless
AVADO to launch apprenticeships and
of whether your organisation sees data
training programmes in the UK. In an
as a problem or an opportunity, there’s
60
M AY 2 0 1 9
CLICK TO WATCH : ‘THE HIDDEN WOMEN OF STEM – ALEXIS SCOTT – TED X, MOUNTAIN VIEW COLLEGE’ 61 an urgent need for analytical capabilities to deal with it, and again, to make better decisions faster.”
DIVERSITY MATTERS It’s no secret that many businesses have a diversity problem. In fact, according to stark research conducted by INvolve, more people called David and Steve lead FTSE 100 companies than women and ethnic minorities. Diversity matters but recent research shows that it also pays: in a 2015 study, McKinsey found that companies in the top quartile for gender or racial and ethnic e uro pe .busi ne ssc hief. com
PEOPLE
“We need to increase the pipeline of women in STEM and that starts with education” — Neelam Sandhu, Senior Director of Business Operations, Office of the CEO at BlackBerry
62
diversity are more likely to have financial
think that’s changing. For example, we
returns above their national industry
can see that two leaders of General
medians. Bringing a broad range of per-
Motors – the CEO and the CFO – are
spectives, diversity is a critical asset for
both women.” Another hurdle lies in
businesses looking to address the talent
education. “We need to increase the
gap. For Neelam Sandhu, Senior Director
pipeline of women in STEM and that
of Business Operations, Office of the
starts with education,” adds Sandhu.
CEO at BlackBerry, one of the biggest
“We need to work on creating an
hurdles lie in the lack of female role
environment where women feel comfor-
models in male-dominated fields.
table learning STEM topics. Not only is
“Women don’t have those same role
the professional environment male-dom-
models or examples as men to look up
inated, but the education environment
to or emulate,” she observes. “But I do
is too. So, creating that environment or
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63
community where women feel
whereby it pairs more seasoned
comfortable in STEM is important.”
employees with new graduates to encourage cross-generational peer-
REVERSE ENGINEERING
to-peer training. “I think it’s been
Any CIO will admit that digital transfor-
a huge learning curve for us,” says
mation isn’t just about new gadgets
Dayne Turbitt, Senior Vice President
and technologies, it’s also about the
of Dell EMC’s Enterprise Sales
people. At its annual Dell Tech forum,
Division. “We paired legacy employ-
for example, Dell Technologies singled
ees with millennials and this helps
out workforce transformation as a cru-
to break down the paradigms you
cial stand of any digital disruption
develop over decades of business. It
programme. Within the firm, Dell Tech-
makes the business open to new
nologies has implemented what it
ideas, it fosters a new culture of inno-
describes as ‘reverse engineering’,
vation. We’ve done some amazing e uro pe .busi ne ssc hief. com
PEOPLE
64
things in the past year and it’s down to this speed of innovation.”
PROCUREMENT VALUE Many procurement professionals will tell you that their job is no longer a support function, it’s a business driver. With procurement now at the fore of many business strategies, skilled workers in this field are in high demand. The Chartered Institute of Procurement & Supply (CIPS) has played a pivotal role in the professionalisation of procurement across the M AY 2 0 1 9
world, offering a range of highly-valued training courses. Sam Achampong, Regional Head & General Manager of CIPS MENA, believes that this is crucial to the upskilling of the procurement field. “We work very closely with companies to create a licensed procurement function whereby everyone in their procurement team is qualified to do procurement. We have created the infrastructure to make qualifications available through an increased number of study centres, universities and accredited degrees. For people, we have also set up a number of professional networks that support these people so that they can continue to share knowledge.” Achampong also underlines the importance of working with local communities, noting: “The key thing is for us to be working with local people in this region, so we’ve worked very hard with the prominent local organisations to make sure that we are helping the capability development of Middle East locals to get credible procurement qualifications and skills.”
PEOPLE POWER Looking forward, it’s clear that if you want to build the workforce of the e uro pe .busi ne ssc hief. com
65
PEOPLE
“We should never underestimate the power and need of human interaction” — Johan Reventberg, President EMEA at JDA Software
66
future you need to act proactively.
survey, McKinsey pointed out that
Business leaders should be vigilant
75% of executives were optimistic that
about workforce gaps and be aware
reskilling and training would help to fill
of the skills needed in the future. They
at least half of their talent needs. Amid
should also create a robust plan to
the war for talent and hiring difficul-
hire, upskill and contract the right
ties, businesses need to be productive
skills and be sure to establish a dedi-
if they want to tackle the challenge of
cated cross-functional team, with
skills and training. It may be easy to
a forward-thinking HR team. In a recent
get caught up in talk of digital disrup-
M AY 2 0 1 9
67
tion or supply chain transformation
people behind. If people get left behind,
but without the people behind it, it’s
they will then be a threat to themselves
near impossible.
and to the companies because they’re
“We should never underestimate the
not going to keep pace with the company.
power and need of human interaction,”
If we don’t train our people, we’re not
agrees Johan Reventberg, President
enabling the workforce of the future.”
EMEA at JDA Software. “The risk is that if your company doesn’t educate and train your workforce, you will leave the e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
68
Bringing greener cities to life through connectivity and innovation Hosting half the world’s population on 2% of the planet’s surface poses a unique set of challenges, says Mike Hughes, Zone President UK and Ireland, Schneider Electric WRITTEN BY
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MIKE HUGHES
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Deloitte’s headquarters, The Edge Building in Amsterdam e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
T
ackling climate change and
population is expected to grow by over
creating sustainable cities in the
1bn people over the next thirteen years,
face of rapid population growth,
reaching 8.6bn in 2030.
ageing infrastructure and the
Meanwhile, the increasingly digital,
pace of technological change has
connected and electric nature of our
never been more important. Cities
lives means that we each as individuals
make up 2% of the world’s surface
have greater energy needs than ever
but house more than half of the world’s
before. Is this pace of growth sustain-
population and consume 75% of
able for urban centres and cities like
energy resources. By 2030, urban areas
London or Paris, let alone megacities?
are projected to host 60% of people
The answer is yes, but only if we make
globally. Very soon, one in every three
our cities ‘smarter’.
people will live in cities with at least half a million inhabitants, as the world’s 70
M AY 2 0 1 9
Incorporating renewables into our energy mix is a vital part of reducing
our environmental impact, but their potential is being wasted by our inefficient use of that energy. Modern technologies, smart sensors and services that can help us identify and tackle energy waste can and must help to improve cities’ efficiency, sustainability, and resilience. For any city, going ‘smart’ can be difficult. The sheer size and complexity involved in building a truly integrated
“ Creating sustainable cities means creating smart cities, powered by clean energy that is responsibly consumed and saved” — Mike Hughes, Zone President UK & Ireland, Schneider Electric
and sustainable smart city is difficult to comprehend. In India, Schneider Electric is helping to build Naya Raipur, 71
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S U S TA I N A B I L I T Y
“ The only way we will tackle climate change and create cities fit for the future is by rethinking our relationship with energy as individuals, businesses and nations” — Mike Hughes, Zone President UK & Ireland, Schneider Electric
a project which aims to build an entirely new capital city for the newly created state of Chhattisgarh. The funding, expertise, organisation, planning and collaboration to create this smart city from the ground up is incredible. Smart cities at this scale require multi-level governance, expert consultants, technology firms and vendors working together to make the concept a reality. But the vast majority of the world’s population live in existing towns and cities, not brand-new developments.
72
Naya Raipur is a smart city project located in the newly formed state of Chhattisgarh in India Photo © Smart Cities Council India
Ageing city infrastructures pose connectivity and network management challenges. At the same time, a 24/7 society and a wide array of IoT-enabled devices and electric vehicles (EV) are fuelling greater energy demand. While cities are tasked with improving services and building new transport networks, hospitals, schools, and homes to accommodate population growth, they do so with tightening budgets. Critical infrastructure (old or new) – such as hospitals, airports, live entertainment venues, schools and office buildings – must be reliable, functional but also efficient if we are to build a sustainable future. And it is in efficiency where there is potential to
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CLICK TO WATCH : ‘TOTTENHAM HOTSPUR’S NEW STATE-OF-THE-ART STADIUM WITH ADVANCED ENERGY MANAGEMENT FACILITIES’ 73 unlock huge financial savings that
of projects to improve their water
could, in turn, reduce running costs,
systems, local or regional energy grids,
helping to fund future investment.
transport infrastructure or buildings.
Developed cities considering going
These precincts or district-scale
‘smart’ simply don’t have the option to
developments are not city-scale, but
rebuild everything from the ground up.
they are large enough to form multiple
They are busy, functioning ecosystems
smart city domains and become a
that need to continue to work whilst
visible and useful reference point to
improvements are made. As a result,
encourage future investment. Indeed,
a piecemeal approach to making cities
by working collaboratively with both
smarter is the only option. It is essen-
public and private sectors, Schneider
tial, therefore, that incentives and
Electric has successfully delivered
regulation are introduced to drive
smart city project applications to more
organisations and individuals to
than 250 cities worldwide.
incorporate efficiency as a core pillar
One such example is our recent e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
partnership with Tottenham Hotspur to help build and manage the energy distribution and consumption at the club’s new state-of-the-art stadium – a landmark in sports venue efficiency and connectivity. As the stadium’s official Energy Management Supplier, Schneider Electric performs 60,000 automated checks every five minutes to ensure that every aspect of energy usage is monitored and optimised, ensuring such aspects and optimal temperature and lighting conditions. Designed for visitor enjoyment and 74
comfort, the stadium is also helping to regenerate the surrounding area of Tottenham, bringing the smart city reality one step closer. The ripples of projects such as these, ambitious in scale and innovative in nature, not only improve energy efficiency, but also set a new standard of living and urban regeneration, whilst also starting to change perceptions of energy use. Take for example the Edge building, Deloitte’s headquarters, in the Netherlands. This building not only delivers a cutting-edge digital workspace and meets the highest environmental standards, but it was created with the goal of being a ‘net neutral’ M AY 2 0 1 9
Tottenham Hotspur’s new state-of-the-art stadium
“ Projects such as these, ambitious in scale and innovative in nature, not only improve energy efficiency, but also set a new standard of living and urban regeneration” — Mike Hughes, Zone President UK & Ireland, Schneider Electric
building and the potential to be ‘net positive’. The Edge is a building that is self-sufficient in terms of the energy it requires to function, and at times (such as at night or weekends) returns excess energy produced to the grid. Forward-thinking projects such as these start to enable us to imagine a future where perhaps the majority of homes, businesses, schools and hospitals could be at worst net neutral and ideally net positive. Imagine receiving an income from your home or place of work, instead of paying bills. It would completely change the way we think about energy generation, distribution, and consumption. Digitisation paves the way for more and more net neutral or net positive buildings, generating their own energy on-site with smart systems that give excess energy back to the grid. Whilst net neutral and net positive buildings are currently just a dream for all but a few, the road to achieving this starts with tackling waste. Something that every government, business or individual can do. With demand for energy rising, unlocking untapped energy efficiency potential has never been more urgent, or easily achieved. e uro pe .busi ne ssc hief. com
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S U S TA I N A B I L I T Y
Investing in smart systems that monitor energy use and efficiency across every aspect of your energy infrastructure is something that can be realised today. By understanding how, where and when energy is used, opportunities for efficiencies can be identified and actioned. Our Global Digital Transformation Benefits Report 2019 identified 12 ways that the digital transformation of energy management and automation drives benefits in CapEx, OpEx, based on interviews with 230 businesses. These companies have realised 76
savings in energy consumption of up to 85% and up to 80% on energy costs. Energy efficiency projects are becoming a C-suite priority, as board members recognise the competitive edge that projects can deliver, at the same time as delivering on sustainability commitments which employees, customers and governments are driving for. Projects like these demonstrate that rethinking energy is not only a major enabler of innovation. It powers progress and life. As the global population grows and our world and lives become increasingly electrified, creating sustainable cities means creating smart cities, M AY 2 0 1 9
S TAT I S T I C S
• Cities make up 2% of the world’s surface but house more than half of the world’s population and consume 75% of energy resources • By 2030, urban areas are projected to host 60% of people globally
Crossrail Place Roof Garden in Canary Wharf, London Photo Š Jason Williams
powered by clean energy that is responsibly consumed and saved. The fact is it is far easier to save a unit of energy than it is to create one. The only way we will tackle climate change and create cities fit for the future is by rethinking our relationship with energy as individuals, businesses and nations.
Deloitte’s headquarters, The Edge Building in Amsterdam
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Premier Partner
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Jury Members 2019
Marek Foryński
Kris Bledowski
Karel Zeman
Wolfram Braun
Panattoni Head of BTS Group
MAPI Council Director and Senior Economist
CBRE Global Investors Poland Head of Investment Operations Poland
AVON Operations Poland Vice President Global Manufacturing
Katarzyna Pyś-Fabiańczyk
Phil Goss
Courtney Fingar
Adam Zawadzki
Exeter Property Group Director Leasing and Development CEE
Perła Browary Lubelskie Vice-president of the Management Board
fDi Magazine Editor-in-Chief
Toyota Motor Europe Senior Project Leader
Philippe Beurtheret
Michał Nowicki
Łukasz Niesłuchowski
Bruno Lambrecht
CEETRUS General Manager Hungary
RECARO Director Quality and Deputy General Manager
Rockwell Automation Country Sales Director
CFE Poland General Manager
Dorota Raben
Preston Smith
Marek Potoczny
Adam Janus
CLIP Group Member of The Board
CDDI Founder & Executive
Valeo Group Industrial Projects Director
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CITY FOCUS
City Focus
80
DÜSSE As the capital of Germany’s most populous state, Düsseldorf offers architecture, industry, a leading business school and much more WRITTEN BY
M AY 2 0 1 8
SOPHIE CHAPMAN
ELDORF e uro pe .busi ne ssc hief. com
81
CITY FOCUS | DÜSSELDORF
D
üsseldorf is the capital of Germany’s most populous federal state, North Rhine-Westphalia. Known for its art,
architecture and fashion, the city is one of
Germany’s wealthiest. The manufacturing industry is a large contributor to the economy, along with commerce, communications and banking. “A total of 155mn people (31% of the total population) live within a radius of 500 km,” states the city’s tourism website. “This represents half the buying power of the EU: a vast market for businesses. Around 100,000 companies are based in the 82
economic area of Düsseldorf.”
ALTSTADT District 1 covers the city’s centre and is made up of six stadtteile (or districts) – Altstadt, Carlstadt, Stadtmitte, Pempelfort, Derendorf, Golzheim. The city’s Medieval old town, known as Altstadt, claims to have the ‘longest bar in the world’ with more than 260 pubs located in the area. The square kilometre is home to buildings from the 13th century such as the Sankt Lambertus Basilika. The iconic Schlossturm (Castle Tower) and Burgplatz can also be found in the area. “The district will also provide intellectual stimulation because this is where most of M AY 2 0 1 8
83
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CITY FOCUS | DÜSSELDORF
84
‘ Located on the Rhine river –– the 1,233km stretch that runs along The Netherlands, Germany and Switzerland –– the tower stands at 240.5m tall’
M AY 2 0 1 8
the state capital’s art and cultural venues are to be found,” notes the city’s tourism site. The Kunstsammlung NordrheinWestfalen art gallery, home to works from Wassily Kandinsky and Paul Klee, can be found in the historic quarter, along with the NRW-Forum, Museum Kunstpalast and the Filmmuseum.
KÖ-BOGEN Referred to as the “project of the century” and “the heart of the city”, the Kö-Bogen complex in Altstadt won the prestigious MIPIM award for Best
CLICK TO WATCH : ‘DÜSSELDORF’ 85
Urban Regeneration Project in 2014.
the Denver Art Museum, and the Royal
“With the completion of the Kö-Bogen in
Ontario Museum in Toronto. “All buildings
the winter of 2013, the city of Düsseldorf
stand for Germany’s sustainability in the
has received a new city centre,” the
future, conceptual strength and forward-
space’s website reveals. “Architecture
thinking city planning,” the website
and the design of inner-city spaces take
continues. The area, which features
on a vital function: urban repair. This
shopping and restaurants, was awarded
innovative and historically unique col-
the Leadership in Energy and Environ-
laboration of city planning, architecture
mental Design (LEED) Platinum
and top tenants turn Kö-Bogen into
certification.
a very attractive piece of real estate.” The project was designed by Daniel
RHEINTURM
Libeskind. The architect’s portfolio
Not far from the Altstadt district, the
includes the Jewish Museum in Berlin,
Rheinturm can be found in the southern e uro pe .busi ne ssc hief. com
CITY FOCUS | DÜSSELDORF
86
district. Located on the Rhine river – the
views as far as Cologne Cathedral,
1,233km stretch that runs along The
depending on the weather conditions.
Netherlands, Germany and Switzerland – the tower stands at 240.5m tall. The
DÜSSELDORF BUSINESS SCHOOL
concrete structure serves as a tele-
The Düsseldorf Business School is
communications tower, which features
located at the Heinrich-Heine University.
the world’s largest digital clock. Con-
The school was established 14 years
struction began on the tower in the city
ago through a partnership between
in 1979, with the structure inaugurated
the Business and Economic Science
in 1981. The architect H. Deilmann
Department of the Heinrich Heine
designed Rheinturm, which can offer
University. “The Düsseldorf Business
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87
School is clothed in the legal structure
located in District 3, also offers courses
of a GmbH. Its shareholders are
within Medicine, Arts and Humanities,
the Heinrich Heine University Düsseldorf,
Mathematics and Natural Sciences,
notable businesses in the region of
and Law.
Düsseldorf, and private persons,” the school claims. “This model of ‘Public-
MANUFACTURING
Private Partnership’ combines the
With the city’s manufacturing industry
university’s reputation and quality
being a large contributor to business,
assurance with the flexibility and the
the wholesale company Makro has
entrepreneurial knowledge of private
located its headquarters in Düsseldorf.
business.” The university, which is
The firm is jointly owned by METRO e uro pe .busi ne ssc hief. com
CITY FOCUS | DÜSSELDORF
‘In 2016, Vodafone GmbH has 41.89mn mobile customer across the nation, which ranked it as the second largest provider after Telefónica Germany’ 88
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AG, the global group founded in 1964 and also based within the city. “METRO is a partner of many small and mid-sized independent companies. Their success is our focus,” the firm states. “We have made it our goal to lift the food and hospitality sector to a new level and to take advantage of the unique opportunity that the comprehensive digitisation of the industry presents – both for our customers, who can transform their business for long-term prosperity, and for us.”
VODAFONE GERMANY The German subsidiary of Vodafone Group, Vodafone Germany, is also based in Düsseldorf. The firm’s offices are located in District 4, the only district west of the Rhine, along with the headquarters for Kamps, Teekanne, and Rheinische. In 2016, Vodafone GmbH had 41.89mn mobile customers across the nation, ranking it as the second largest provider after Telefónica Germany. In 2000, Vodafone Group acquired Germany’s Mannesmann GmbH, an engineering firm, which led to the establishment of the subsidiary.
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T O P 10
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TOP 10
Universities in Europe for MBAs Business Chief reveals the best universities across Europe to study a Master of Business Administration, according to the Telegraph WRITTEN BY
SOPHIE CHAPMAN
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10
Cambridge Judge Business School
The business school at Cambridge University in the UK was established in 1990, named after Sir Paul Judge. Located on the Old Addenbrooke’s Site, the school falls under the university’s School of Technology. Judge Business School is comprised of around 55 members, whose “research interests span the globe and the full spectrum of business issues”, the school claims. “Many are leaders in their field directing cutting-edge research, consulting for top businesses, advising governments, and most of all, bringing their experiences and newfound knowledge into the classroom.”
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09
HEC Paris
HEC Paris was founded in 1881 by the Paris Chamber of Commerce (CCIP), and is a founding member of CEMS – Global Alliance in Management Education. The France-based school currently has around 4,000 students. “HEC Paris has built itself on three core values: academic excellence, a strong sense of community and a commitment to diversity. Thanks to these values, the school has developed into one of the world’s best business schools, as showcased in top international rankings,” the schools states. The international business school’s President and Dean are Henri Proglio and Peter Todd.
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08
IMD
The International Institute for Management Development has around 9,000 students and is located in Lusanne, Switzerland. “IMD is an independent business school, with Swiss roots and global reach, expert in developing leaders and transforming organisations to create ongoing impact. For the last seven consecutive years, IMD has been ranked TOP 3 in executive education worldwide – FIRST in open programmes (Financial Times 2012-2018),” says the school.
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07
ESADE Business School
Spain’s ESADE Business School in Barcelona has around 7,500 students. The college also has a campus in Buenos Aires, Argentina. The school has been awarded the triple accreditation by EQUIS, AACSB, and AMBA. “Through innovation and creativity, ESADE Business School provides a modern, innovative and inherently digitalised learning experience geared towards training leaders capable of adapting to new ways of thinking and working,” ESADE says. “Our rigour, excellence, teamwork and methodology have helped place ESADE Business School among the world’s top business schools.”
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06
SDA Bocconi Business School of Management
The SDA Bocconi Business School of Management is located in Milan, Italy. The school describes its MBA as one “for people who just won’t stop”. The MBA “aims to forge global leaders with an Aspiration to change and an Ambition to excel, while being Aware that leadership also requires social responsibility”. The business school was established in 1971 and holds the motto: “Empowering lives through knowledge and imagination.”
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99
05
IE Business School
The school is situated in Madrid, the capital of Spain. “IE offers a technology-based learning ecosystem, training the leaders of tomorrow to make positive change through innovation, global vision, an entrepreneurial mindset and a unique focus on the humanities,� states the school. Founded in 1973, IE currently has around 400 students and offers BBA, MBA, Executive MBA, PhD and DBA programmes.
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100
04
IESE Business School, University of Navarra
The third Spanish school to feature in the top 10, IESE Business School can be found in the University of Navarra in Barcelona. “For more than 60 years, IESE has been at the forefront of management education and leadership development. Our mission today remains the same as it was back in 1958: to educate and inspire leaders who wish to have a positive and lasting impact on people, business and society,� the school comments. IESE employs 175 members of academic staff.
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101
03
Saïd Business School, University of Oxford
The school was founded in 1996, as part of University of Oxford in the UK. “It has evolved to be one of the elite business schools of the world, embedded in the world’s top University, and aspiring to be a model of purposeful leadership,” the school states. “The school has a welldeserved reputation for excellence in a number of areas, including finance, entrepreneurship, social innovation, major programme management, digital marketing, tax and more.” The school has approximately 300 undergraduate, 710 postgraduate and 50 doctoral students.
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02
London Business School
The Dean of London Business School is François Ortalo-Magné, who took the role in 2017. There are 2,000 students enrolled at the school, which has
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a campus in the capital of both the UK and Dubai. “Over four decades, our graduates have increased tenfold and our executive programme participants twenty-fold. One thousand alumni have become more than 42,000, with 113 alumni clubs stretching across every continent,” says the business school.
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01
INSEAD
INSEAD is located in Fontainebleau, south-east of Paris. “Fontainebleau, the home of INSEAD’s Europe Campus, is spread across eight hectares. Nestled in the vast forest
104
of Fontainebleau, the modern architecture of the campus blends harmoniously with the green and leafy surroundings,” claims INSEAD. “Facilities are of the highest standard and include 29 lecture theatres, two restaurants, a bar, a bookshop, extensive library resources and a fully equipped gym.” 1,000 students study an MBA at the school.
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Disruptive technologies for the digital transformation of insurance WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
JAMES PEPPER
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ERGO
Joe Lapierre, Managing Director and CEO of ERGO Digital IT, ERGO’s digital technology unit, discusses the measured and focused strategy for applying disruptive technologies and methodologies
108
A
mid the industry’s rapid and exciting changes driven by disruptive technologies,
German insurance firm ERGO set up an IT unit dedicated to pushing the technological enablement of its digital transformation: ERGO Digital IT. “As my boss says, ERGO Digital IT is seen as the tip of the spear,” says Joe Lapierre, Managing Director and CEO of the unit. “We are the agile and technology facilitators of the digital transformation.” The unit currently has offices in Berlin and Warsaw, and was devised from the ground up to augment ERGO’s operations with technology. Its operations are closely entwined with all other IT entities within ERGO, and its projects are driven by colleagues across all disciplines, sites and expertise. M AY 2 0 1 9
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Digital superheroes are born – or made by us. Everyone talks about change. We design it. With digitalization, companies face the challenge of transforming their business models. Anyone who wants to become a digital superhero must learn from the digital natives. BearingPoint shows you what that means in concrete terms, from the further development of your business model to the generation of network effects through the integration of different services. You benefit from our many years of experience as management and technology consultants and from the platforms and software solutions we have developed.
Consulting. Solutions. Ventures.
Imagine for a moment that you are the world’s most modern insurance company The pace has changed. More insurance clients are digital natives and expect seamless and effective communication with a free choice of touchpoints and channels. Are you prepared for this? Do you have a 360-degree view of your customers no matter the channel they choose or the concerns they have? Are you able to identify and fulfill additional services your customers need based on the data you have? Using innovative technologies in combination with a deep understanding of clients, the markets and business needs will help you get there. Client expectations are changing. Especially when it comes to claim. Expected and requested services need to reflect the highest standards of both quality and speed. What if sensors could detect a dishwasher has a leak and it gets repaired before it causes major damage? Wouldn´t this avoid inconveniences for the client and save you costs? The modernization of insurance platforms in combination with AI, IoT, and process automation technology will get you there. Combined that with the data you need to predict and proactively handle the process, and the client will see you in a different light. The organization needs to be ahead. Being adaptive and creative enough to manage innovative technology, being stable enough to be there for your clients 24/7 and being strong enough to fulfill the growing complexity of regulatory requirements are challenging and can push organizations to their limits. Can you manage different speeds within your organization without sending parts of it off into a black hole? Careful but goal-oriented change of your organization and processes, especially change that reflects your business-specific starting position, will enable you to create your own path, to make you a leader again instead of a follower. The whole. Technology can be the engine driving your business. Can you make the right decisions for your business and implement them? Are you able to keep track of the latest startup technologies and see the potential impact they will have on your daily business? Holistic but predictive handling of technologies in combination with your business capabilities will identify the right balance between existing and innovative solutions and provide you with a stable but future proof and flexible environment. Imagine for a moment that this is reality.
“Our ambition and passion turn imagination into reality. Combining a deep understanding of your business with people who have a finger on the pulse of technology make us at BearingPoint the right choice for getting you there. You are not only an insurance company: for us you are the insurance company.” • • • • •
Your technology advisor Your business advisor Your change advisor Your trend scout Yours
www.bearingpoint.com
ERGO
“ You don’t want to get too carried away with new technology: look at it, blend in the new with the old, and make it practical” 112
— Joe Lapierre, Managing Director and CEO, ERGO Digital IT
M AY 2 0 1 9
ERGO Digital IT was equipped with the full range of skillsets to make a success of its endeavours, including designers, engineers, developers, program managers, testers, DevOps, cloud and product owners. ERGO Digital IT has been instrumental in supporting its parent company to remain at the forefront of the industry as technology becomes increasingly vital in meeting customer needs and expectations. “What we’re trying to do is add a digital ecosystem where there’s a host of reusable assets
ERGO – COMPANY REVIEW 113 that can be leveraged independent of where you are, which language you speak and which technology you’re currently running, to accelerate the time to market and make smaller ERGO entities more competitive,” says Lapierre. From the outset, Digital IT has been given the flexibility and dynamism it needs to drive digital transformation at ERGO IT in the most effective way possible. “We were set up in Berlin and Warsaw on purpose, in order to be able to attract talent here,” notes Lapierre. With both Berlin and Warsaw, ERGO Digital IT’s offices are located within e uro pe .busi ne ssc hief. com
hunterPac WHO ARE WE?
There is one thing you need to know about hunterPac, we love people and the journey that we undertake with them. Most importantly we learn new things about people every single day: what they enjoy, what engages them and where they see their future guiding them. This is what drives our managing director, Ken Owiti, as he strives to grow the people and relationships that are so important to Ken and the team. Respect for people is one of the guiding principles at hunterPac, be it the many that make up a company, or the one that is looking for guidance to help grow their career. We know people; we find people; we
place people; we coach and mentor people, so that they will make a positive impact in the companies they are placed with, leaving both the company and the individual stronger for the experience. We partner with you to enhance performance, productivity and deliver the right business outcomes. Ken and the team, after many years in the industry, have gained in-depth experience in the Insurance, Technology, HR and Operations domains. We bring simplicity, clarity and authenticity along with our experience, working with corporations to clarify and distil exactly what and whom they need to make them stronger.
OUR TEAM Ken Owiti Director Genie Khan Principal Anthony Page General Manager, Tech Ventures
CONTACT US
FIND OUT MORE
EXECUTIVE SEARCH, CONSULTING, CONTRACTING & TECHNOLOGY VENTURES WE WILL GET YOU WHERE YOU NEED TO BE We have a long history of partnering with Blue Chip clients across a range of industries from Retail, IT, Government, Mining, Media, Telecommunications and Financial Services. Our passion for people with specialised, complex skill sets has led us into regions such as Asia, Australia, Europe and Africa, one of the world’s fastest growing markets. We pride ourselves on our network of talented executives, giving us the ability to quickly identify appropriate people to meet your needs, and provide a thorough and efficient evaluation of their strengths in relation to what you seek.
WE’RE THE BEST PEOPLE TO EVALUATE YOUR BEST PEOPLE When clients seek people for short term, defined outcomes, we draw on the services of Recruitment & Contract Resourcing via specialist Genie Khan and her team. hunterPac offers organisations seeking to broaden their capabilities a unique Consulting approach to support organisations who wish to quickly tap into specialist skills, seek advice or solve specific problems in the short term. Mirroring our approach to Executive Search, the team maintains our networks of professionals within our specialist domains. We coach, develop and mentor your team, but it goes beyond just increasing skill. We’re increasing the intelligence, understanding, capability and culture within the business with our holistic approach.
HELPING DEFINE THE VALUE OF HUMANISTIC PURPOSE The end result being a more balanced team with refreshed and restocked knowledge, skill and strategic understanding, more capable of driving your business forward as a strong and confident team. hunterPac recently launched its Technology Ventures division headed by Anthony Page, leveraging its network of leading specialists to help illuminate old issues, fast track those lightbulb moments, drive new possibilities and opportunities to make a real impact.
DIGITAL DISRUPTION IS REDEFINING THE BUSINESS PARADIGM At hunterPac Technology Ventures, we are putting effort into the future. Not just sitting on the sideline, but invested, engaged and involved. We are helping to tie the physical world to the virtual world and building understanding of customer activity prior to the digital engagement. By doing this we help our clients unlock their potential. We are heavily involved with research and development into business intelligence platforms utilising artificial intelligence, including Machine Learning and Deep Learning.
DATA WITHOUT A FOCUS IS JUST NOISE We strongly believe that if you can’t measure it, you can’t manage it. Henry Ford once said “If I had asked them what they wanted, they would have said faster horses”. The horse is a person’s reference point, which makes the answer very logical and therefore not very innovative - insight is the name of the game. We recognise the need to do things differently, to innovate and create insight. To that end we are investing in Bio- analytics technology start-ups and incubating talented people and companies, supporting them with our networks of leading specialists. Our R&D investment can help your business stay ahead of the ever-changing business technology environment, deliver insight, extend corporate radar and stay ahead of the competition and excel in the moments that matter.
BUILDING STRONG, TRUSTED RELATIONSHIPS hunterPac will find the missing piece of your jigsaw and together we will construct a stronger future while helping you grow, opening your eyes to new technologies and opportunities. hunterPac delivers skills that will create balance, intervene and change your course. We bring knowledge of people, process and industry. And most importantly we leave having made a difference, having built something together. Two of the most significant advantages that hunterPac brings are intimacy and immediacy, together they make the world smaller.
ERGO
“If we decide to switch to Microsoft Azure in the future, that will be easily done” — Joe Lapierre, Managing Director and CEO, ERGO Digital IT
116
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two of Europe’s most active and
“I also encourage startups to talk
exciting tech startup scenes. Lapierre
to other startups,” Lapierre adds,
has been involved in fostering positive
crystallising the benefit to ERGO
development of startups in both
Digital IT of having someone at the wheel
Asia and Europe, having worked and
who takes it upon himself not only to
mentored multiple fintech startups in
nurture tech startups but to glean ideas
Hong Kong prior to his current role.
and inspiration from some of Europe’s
“I try to provide guidance, direction,
most innovative minds. “I’m a practical,
practical common sense and some-
common sense digital person,” he
times just motivation,” he says. “The
explains. “You don’t want to get too
Tech Stars Berlin Programme, that I
carried away with new technology. You
personally support, runs a mentorship-
need to look at it, blend in the new with
driven accelerator which provides
the old, and make it practical. Don’t go
startups with feedback and helps them
too far off one way or the other and
to focus on what they’re aiming for,
keep a level head on your shoulders
what they’re trying to implement, who
when you’re integrating newer
their audience is and how they engage
insurtech or fintech solutions into your
with their customers”.
IT environment.”
E XE CU T I VE PRO FI LE
Joe Lapierre Joe Lapierre is a Digital Technology and Customer Experience expert who helps large multinational corporations tackle the huge task of digital transformation. Outside of work he also volunteers as a mentor and helps fintech startups build an audience and grow their customer base. Lapierre has worked extensively in the US, UK, Europe and Asia.
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ERGO
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“People who gave a lot of pushback two years ago and have since become some of our most vocal supporters” — Joe Lapierre, Managing Director and CEO, ERGO Digital IT
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N W
E z
In close cooperation As a family-owned IT solutions provider founded on craftsmanship, we work in close cooperation with our customers.
Learn More
We help organizations create frictionless and highly personalized experiences for their customers, consumers and citizens.
Find us:
ERGO – ’DIGITAL IT’ 121 This mentality has been vital to
protection, ERGO Digital IT has used
Digital IT’s key focus when considering
Kubernetes software to run containers
and developing ways to drive ERGO’s
within the system. “Kubernetes keeps
digital revolution. To facilitate a smooth
a lot of our workload portable, creating
transition from legacy platforms to
silos where we can reassign content
modern solutions, IT has created an
relatively easily from place to place,”
application programming interface
Lapierre says. “If we decide to switch
(API) factory to make the back end less
between providers in the future, that
dependent on old tech and drive it
will be easily done. It also helps us to
towards the target architecture. Amidst
stay elastic between cloud and on-prem-
this change, the foundations have been
ise solutions.” In itself, these actions
laid for flexibility in the future. With
unlock enormous opportunities for
a security driven cloud strategy that is
improved operations. ERGO Digital IT
closely aligned with compliance to GDPR
has devised its own distributed data hub
and consumer expectations of data
where its data sets are combined to e uro pe .busi ne ssc hief. com
ERGO
122
provide a comprehensive view of the customer. “The customer expects us to communicate with one voice, being aware of all interactions the customer had with ERGO through all channels, and being able to access all data on contracts, addresses etc. from every point of contact. In short: the customer wants the best, most convenient and fast access to all their data and speedy answers to all questions. We pull all the data from multiple sources M AY 2 0 1 9
2016
Year founded
250
Approximate number of employees
123
into a single repository to enable this,”
If it wasn’t a sale, what else could the
says Lapierre.
customer potentially want? How can
To utilise data more efficiently for the
we service the customer faster or more
customer and also to lighten the work
easily or reach out to them in the future?”
load regarding repetitive tasks, ERGO
AI-driven automation has already taken
Digital IT also supports initiatives within
effect for certain internal processes,
ERGO to apply AI and explore machine
enabling the firm to unburden employees
learning. “We’re looking into things like
from basic tasks. ERGO Digital IT works
speech-to-text where you can receive
closely together with other IT entities
a phone call, convert that to text
on these projects. “One business had
automatically, and then analyse it to
approximately 100 people who were
provide better service to the customer.
classifying emails as they were coming e uro pe .busi ne ssc hief. com
Driving insurers
digital future into a
At Cognizant, we’ve invested in the end-to-end capabilities needed to help insurance organizations not just do digital, but be digital. We partner with our clients to unlock new value and through the power of digital technologies and new ways of working, we help them evolve into more competitive, progressive versions of themselves. Learn more at Cognizant.com
Copyright Š 2019 Cognizant
“ We pull all the data from multiple sources into a single repository, our distributed data hub” — Joe Lapierre, Managing Director and CEO, ERGO Digital IT
125
in, and that is now achieved through an
RPA back office processes currently
algorithm which allows the AI to do the
in use,” says Lapierre. “The AI-driven
job and reroute them directly,” says
email classification didn’t fall into the
Lapierre. His AI ambitions for ERGO
RPA category because it was more
Digital IT do not end there, however:
logic based than it was just repeating
“We are using Amazon Web Services
existing processes, but simple things
(AWS) with Hortonworks to create an
such as calculating commissions for
entire AI platform which will allow us,
an agent or broker are where we have
like the distributed data hub, to take,
applied it. As part of our straight-through
modify and utilise that AI learning for
attempt to digitalise everything, there
other projects.” In the back office, robotic
are certain steps along the claims
process automation (RPA) is also being
process that have had RPA applied to
leveraged to free staff from repetitive
them with a view to gradually automating
tasks. “ERGO has about 13 different
the whole process.” e uro pe .busi ne ssc hief. com
ERGO
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This incremental application of technology is in keeping with Lapierre’s practical and measured approach to transformation, which is again found in the firm’s internal change management. “We have a lot of people who have worked at ERGO for over 20 years that are experts in their areas, and we cooperate closely with these strategic business people,” he says. The agile approach to transformation within ERGO IT overall has seen considerable success. “We increasingly work across all business units, IT specialisations, locations as well as adapt new technology and have changed our role within the corporation considerably – IT is a driver of business development.” This positive shift is emblematic of the success of ERGO Digital IT since its inception, with Lapierre at the helm. Appreciating the difference between what can be done and what should be done has been crucial to the success of ERGO Digital IT’s operations as a digital transformation facilitator. With the groundwork laid for continued flexibility and clarity, this success is well set to continue on its upward trend.
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127
128
ETHICALLY HARNESSING DATA TO RECONNECT WITH CUSTOMERS WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
JAMES PEPPER
M AY 2 0 1 9
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DNB
Aidan Millar, Chief Data Officer at DNB, discusses the bank’s transition to digital services and the importance of leveraging data to reconnect with customers as a trusted data custodian 130
D
NB is Norway’s leading financial services provider – not just in regards to size, but also with its progressive
digital transformation program; with over 2.1mn retail customers and 221,000 corporate customers. DNB reduced the number of branch offices in Norway from 116 to 57 in 2017, driven by changes in customer preferences. The success of the channel shift is remarkable. In a Finalta benchmark analysis of the international banking sector, DNB was ranked number one in the world based on the efficiency of its branch network. Digitalisation has brought explosive growth in data, bringing new challenges and opportunities to the business. For DNB the imperative is, and will always be, to stay relevant to M AY 2 0 1 9
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DNB
132
“ Customers are talking to us every second on our digital channels – we just need to listen” — Aidan Millar, Chief Digital Officer, DNB
M AY 2 0 1 9
CLICK TO WATCH : ‘NORWAY’S FINEST RESIDENTIAL’ 133 customers in their daily digital lives.
nect and stay relevant to our custom-
“Our customers are talking to us every
ers on digital channels.”
second of the day on digital channels,
Millar is deeply passionate about
and we have to have the ability to
handling data in a legally compliant and
listen and respond effectively to their
ethical way. “We’ve got to be seen as
needs,” says Aidan Millar, Chief Data
the trusted data custodian that capital-
Officer at DNB. This is the challenge
ises on data driven insights to deliver
of digitalisation that he believes is too
value for our customers, and we’ve got
often overlooked. “Everyone talks
to do this in an ethical and compliant
about going digital, but if you’re not
way.” This commitment is a defining
capitalising on data streams that are
element in establishing the customer
generated through your digital
centricity that Millar aims to drive through
channels, then you’re going digital
data driven insights. “It starts with
without listening. My role is to lever-
people and organisational culture.
age digital interaction data to recon-
Culture eats strategy for breakfast, so e uro pe .busi ne ssc hief. com
DNB
134
you have to fuel your enterprise data strategy with a passion for data,” says Millar. The DNB transformation to a data driven organisation is underpinned by a focus on the ethical and compliant use of data. “Regulations are often seen as a burden and should be reframed as best practice, but why wouldn’t you want to be compliant with best practice?” says Millar. The General Data Protection M AY 2 0 1 9
Regulation (GDPR) is about protecting customer data and data rights, who would disagree with that as a principle, he asks. The emerging Basel Committee regulations on data (BCBS239) are also important, he says, setting out where data comes from and its efficacy in risk reporting processes. “The ethical use of data will be a strategic differentiator for banks of the future. Companies
“ Building trusted partnerships with niche providers to co-create and build reciprocity” — Aidan Millar, Chief Digital Officer, DNB
that haven’t used their data in an ethical way will lose trust, and one bad custom-
as the bank migrates onto scalable
er experience can mean that trust is
and adaptable cloud platforms. “From
lost forever.”
a data perspective the cloud platforms
The data itself is managed within
provide highly secure, massively scalable
DNB’s multi cloud solution, whereby
and agile delivery solutions,” says Millar.
both Amazon Web Services (AWS) and
The cornerstone of DNB enterprise
Microsoft Azure have been leveraged
data and analytics platform, Millar says,
E XE CU T I VE PRO FI LE
Aidan Millar Aidan Millar is passionate about the positive disruption of technology and advanced data analytics on the financial services industry. He has over 25 years of professional experience partnering with senior executives to implement large-scale IT change and data related initiatives to drive competitive advantage; a Positive Disruptor͛with the courage to make things happen!
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NAVIGATE YOUR NEXT Make your #DataDoMore
Infosys is a global leader in next-generation digital services and consulting. We enable clients in 45 countries to navigate their digital transformation. At Infosys, we believe that data is the life and blood of any enterprise that aspires to be digital. Data is a strategic asset that not only helps enterprises drive continuous innovation, but also to create new digital experiences for their customers. Today, coupled with the power of AI, data is emerging as a major economic force that lies at the epicenter of every enterprise’s transformation journey. And as enterprises aspire to respond to change nimbly, become more productive, a new economy is emerging -- the data economy. This will drive industry disruption, new business models, net new demand and catalyze governments’ role towards shaping the future of Enterprises, Society and Economy. In order to thrive in this economy, enterprises must digitally network and connect the data divides within the enterprise and across in the economy to create new dominant plays in the industry. Infosys is helping enterprises across the spectrum monetize their data by navigating them through the data economy to mitigate risks, achieve new revenue models and operational efficiency in order to deliver better customer experiences. Your data holds the key to your next big innovation. Unlock your data’s potential to navigate your next, with Infosys.
Visit www.infosys.com/data-analytics to see how Infosys (NYSE: INFY) can help your enterprise navigate your next. Write to us at Datadomore@infosys.com
“ We have to stay relevant and add value to customers in their daily digital lives” — Aidan Millar, Chief Digital Officer, DNB 137
has been the establishment of DNB’s
enable them to leverage the niche
advanced cloud based data science
capabilities of multiple partners.” DNB
laboratory which provides the analytics
has taken a different route, bringing in
capability and the technical scalability
the flexible, best of breed solutions:
required to process the massive volumes
R-Studio, Jupyter Notebook, Spark,
of data in near real time. Amazon Web
Neo4j among others, for their data
Services (AWS) comes in as DNB’s
science capabilities; Syncsort (Trillium)
primary big data appliance, but Millar is
for data quality and Collibra for its
quick to add that DNB takes a holistic
crowdsourcing business orientated
approach to its vendor partnerships,
data governance toolset; D4T4 for
representing a break from the approach
leading edge tagless digital channel
the sector has taken in the past:
capture; and Infosys as the strategic
“Traditionally, most big banks went
data partner, leveraging their capabili-
with one data vendor, but that didn’t
ties and accelerators, related to data e uro pe .busi ne ssc hief. com
DNB
2.1mn
Personal customers
1.3mn Internet banking users
138
269mn
Payment transactions in 2018
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139
e uro pe .busi ne ssc hief. com
We organize data everywhere, to keep the world working We use our experience so you can quickly extract value from your critical data anytime, anywhere
Syncsort’s powerful enterprise software provides a simple way to optimize, integrate and advance data anywhere, so you can work more efficiently, grow faster and achieve more.
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We advance pushing the boundaries of what data can do by building products that make data more useful – helping you solve for the present and prepare for the future
CLICK TO WATCH : ‘DNB – S FOR SAVINGS AGREEMENT’ 141 engineering, data governance and
data driven actionable insights. One
analytics. When it comes to managing
area that has benefitted from such
this array of vendors, Millar believes
insights is the continued development
that DNB’s approach promotes reciproc-
of DNB’s online and mobile digital
ity. “I see our technology solution
services. “We’re looking at digital
vendors as trusted solution partners,”
channel interaction data to asses
he says. “We work closely together
customer journeys on our digital
to foster these trusted partnerships
channels using a leading edge digital
where we co-create and deliver
capture solution, provided by D4T4”,
value together.”
Millar explains. “We can assess whether
All of this advanced technology, and
our digital channels are aligned to
the work involved in implementing it,
customer preferences and continuously
ultimately builds customer-centricity
improve the digital experience.” The
through innovative solutions such as
platforms can also be optimised to
a Data Marketplace that helps drive
deliver highly tailored digital offerings e uro pe .busi ne ssc hief. com
DNB
142
to meet anticipated customer needs
continuously enhancing core business
and wants, he says. “Our analytics
operations. Its internal efficiency
capabilities are focused on delivering
program DigiDrift is delivering results
the right product, at the right price,
– DNB has employed robots in as many
through the right channel, at the right
as 35 processes so far - the company’s
time,” says Millar.
chat-bot Aino can talk to 3,000
In addition to developing new and innovative digital products, DNB is M AY 2 0 1 9
customers at the same time and there is more to come. DNB is embracing
€5.2bn Approximate revenue
1822
Year founded
9,225
Approximate number of employees
technologies and expects changes to
augmented Robotic Process Automa-
accelerate in the years to come. The
tion (RPA). “We want to take our RPA
Bank has entered into a partnership
to the next level where we can digitise
with the Norwegian University of
paper documents into a systematic
Science and Technology (NTNU),
process that understands the full
sponsoring three professorships
context of the document and can
focused on machine learning, Natural
process it as if it were a human being,”
Language Processing (NLP) and
he continues. Millar stresses that no e uro pe .busi ne ssc hief. com
143
DNB
144
M AY 2 0 1 9
part of this endeavour is aimed at replacing staff, but is instead about applying people to tasks that require higher value human insights. Making the benefits of digital transformation clear to employees and allaying concerns of what it could mean for their roles has been vital to the success of the journey so far. Through the application of data and advanced technologies to optimise both internal efficiency and the customer experience, DNB is well on its way to maximising the value of the bank’s digital transformation. The focus on reconnecting with customers, not only to deliver added value but also to generate impactful insights to steer strategy effectively, is bolstered by Millar’s unerring dedication to maintaining DNB’s reputation as a trusted data custodian. As the bank’s customers continue to transition to its digital offerings, it is certainly positioned to continue with its powerful and successful data driven digital transformation journey while reinforcing its admirable corporate values of a trusted service provider.
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145
Driving sustainability and growth together WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
JUSTIN BRAND
146
MONTH 2019
147
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ANHEUSER-BUSCH INBEV
Matthew Frost, Global VP for Raw Materials Procurement and Sustainability at Anheuser-Busch InBev, discusses the company’s Sustainability 2025 goals, the four pillars that define its aims, and the positive impact they have had on its supply chain and sales
148
C
ompanies worldwide are finding that manoeuvring towards sustainability driven operations is not only boosting profits but
is also enriching the lives of communities along their supply chains and mitigating their impact on the environment. One such firm to experience this is Anheuser-Busch InBev (AB InBev), the largest beer manufacturer in the world, which has accelerated its historic commitment to sustainability with its ambitious 2025 Sustainability Goals. Broken down into four pillars – Smart Agriculture, Water Stewardship, Circular Packaging and Climate Action – the sustainability drive is seeing a revolution of AB InBev’s supply chain operations. Matthew Frost, Global VP Raw Materials Procurement and Sustainability, is passionate about the multifarious, intersectional benefits of this transformative initiative, and firmly believes that strong sustainability practices are intrinsically linked with improved M AY 2 0 1 9
149
e uro pe .busi ne ssc hief. com
CREATING BUSINESS VALUE THROUGH SUSTAINABLE ENERGY Ensuring you have the best partner at your side.
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enelgreenpower.com
ENEL GREEN POWER GLOBAL PARTNERSHIP AB InBev joined the RE100 initiative in early 2017, committing to procure 100% renewable energy by 2025. This is a progressive commitment and companies, like AB InBev, can meet their renewable energy needs in several ways, including purchasing Energy Attribute Certificates (EAC), entering into a long-term Power Purchase Agreement (PPA) or signing up for a Green Tariff. The ways an organization can purchase renewable energy is constantly changing and the contract structures are becoming more complex and innovative each day, including financial hedges and weather derivatives. At Enel Green Power, we work with our partners to help
USA
them understand these different structures and what options are available in each country where they operate. We spend time understanding the goals and challenges of each organization and walk through the different options available, providing the right solution that meets their goals, delivers cost certainty and minimizes risk. We have worked with AB InBev to find customized solutions in the United States and in Chile. In the US, the contract is a Virtual PPA, which is a long term commitment also known as a Contract for Differences (CfD). In Chile, a Green Tariff provided by Enel Distribution Chile is supplied by an Enel Green Power Solar PV plant.
VIRTUAL (OR FINANCIAL) PPA FOR A RE100 CLIENT
PROJECT
OFF-TAKER
THE BUDWEISER WIND FARM AT THUNDER RANCH OKLAHOMA 298 MW $ 435 MILLION INVESTMENT 1,100 GWH ANNUAL GENERATION
CHILE
AB INBEV NEEDED TO PROCURE RENEWABLE ENERGY TO SUPPLY THEIR BUDWEISER BREWERIES IN THE US
SOLUTION VIRTUAL POWER PURCHASE AGREEMENT (VPPA) ENEL GREEN POWER IS SELLING THE ELECTRICITY GENERATED BY A 152.5 MW PORTION OF THE WIND PROJECT TO AB INBEV THE RENEWABLE ENERGY PURCHASED IS ENOUGH TO BREW MORE THAN 20 BILLION 12 OZ SERVINGS OF BEER EACH YEAR 30% CO2 FOOTPRINT REDUCTION
GREEN TARIFF WITH VOLUNTARY RENEWABLE CERTIFICATION
NEED
SOLUTION
BENEFITS
AB INBEV NEEDED TO IMPROVE SUSTAINABILITY WITH RENEWABLE ENERGY THAT COULD CERTIFY THEIR PRODUCTION PLANT IN THE CAPITAL CITY, SANTIAGO
IMPLEMENTATION OF ENEL CHILE CLEAN ENERGY SUPPLY PROVIDED BY THE ENEL GREEN POWER SOLAR PV PLANT DIEGO DE ALMAGRO, LOCATED IN THE ATACAMA DESERT
19 GWH/Y OF CLEAN ENERGY SUPPLY WITH CONSIDERABLE REDUCTION OF THEIR CARBON FOOTPRINT FIRST BREWERY IN CHILE WITH RENEWABLE SUPPLY CERTIFICATION
ANHEUSER-BUSCH INBEV
CO M PAN Y FACT S business operations and innovation. “I think the organisation as a whole is learning more and more that sustainability really is our business now,” he says. Frost notes that, from a commercial perspective, the gradual shift in consumer interests means that this initiative is not only driven by a sense of responsibility, but is also simply good business sense. “Consumers are very much aligned to the message of sustainability, so we find that consumers are seeking out products from com152
panies which are doing something to positively influence the planet through their supply chains. More and more, that’s actually helping us to sell beer,” he adds. “The past two sets of sustainability goals were certainly achieved, but they weren’t as far reaching as our new 2025 ones. They’re helping us to drive growth in the business, innovation, supply security and cost reduction. The more we get into it, the more we realise how beneficial it is for the business overall.”
SMART AGRICULTURE AB InBev aims to ensure that 100% of its direct farmers, from which the firm M AY 2 0 1 9
• AB InBev directly sources 3mn tonnes of barley each year • AB InBev’s electricity will be 100% renewably sourced by 2025
153
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ANHEUSER-BUSCH INBEV
directly sources 3mn tonnes of barley
they benefit much more from having
each year, are skill connected and
training and direct access to agronomi-
financially empowered by 2025. Frost
cal advice on how to grow crops more
notes that this means different things
effectively.”
in different territories across the supply
156
As one of the largest users of
chain, highlighting the fact that the
malting barley worldwide, AB InBev
skills of its farmers in the US are largely
has established its own Barley
well-established, efficient, and less
Research Centre in Fort Collins,
likely to benefit from AB InBev’s direct
Colorado, to ensure that barley
input. The biggest impact to be made is
remains a competitive crop for their
with its smallholder farmers in less
farmers to grow. “We are constantly
affluent countries and regions. “When
working on breeding new varieties of
it comes to farmers growing cassava in
barley that are more disease-resistant,
Mozambique, for example, these are
capable of surviving droughts and
smallholders, family operations, so
flooding, and able to produce more in
“ Consumers are very much aligned to the message of sustainability” — Matthew Frost, Global VP Raw Materials Procurement and Sustainability
M AY 2 0 1 9
CLICK TO WATCH : ‘HOW AB INBEV IS EMPOWERING BARLEY FARMERS IN UGANDA’ 157
e uro pe .busi ne ssc hief. com
Supply Chain Efficiency Demands a World-Class Supplier.
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the field depending on the climatic and
in developing countries such as
soil conditions. Therefore, they are
Uganda and Zambia. “Blockchain gives
able to yield more,” explains Frost. “All
smallholders a digital identity, making
of this makes barley less risky for our
them credit-worthy and bankable,”
farmers to plant, whether they’re in the
says Frost. “They can then take out
Ugandan highlands or in Argentina with
loans, grow their business and become
a fully automated farm.” The unifying
more successful. With farmers in more
element between its farmers, whether
developed countries, like the US or
they are smallholders or large agricul-
Argentina, AB InBev’s focus is on
tural cooperatives, is the digital
providing cost effective crop insurance
platforms that AB InBev provides.
and facilitating access to credit.”
These platforms enable the company’s goal of financially empowering its
WATER STEWARDSHIP
farmers, with one example being a
In addition to ensuring that clean water
blockchain-enabled platform deployed
is available to communities surround-
E X E CU T I VE PRO FI LE
Matthew Frost A British National and trained Chemical Engineer, Frost has 30 years of End2End Blue Chip FMCG Supply Chain experience acquired through roles in Research and Development, Engineering, Manufacturing, Logistics and Procurement. Having worked in the UK, Germany, Russia, Switzerland and Africa, Frost has developed a holistic knowledge of procurement across a range of markets. Having served as Chief Procurement Officer at SABMiller, Frost was appointed as AB InBev’s VP Global Raw Materials Procurement and Sustainability when it acquired the firm in 2016.
e uro pe .busi ne ssc hief. com
159
ANHEUSER-BUSCH INBEV
ing its breweries, AB InBev is working
“Saving a few gallons of water in our
to create long-standing change in
breweries isn’t going to change the
water consumption across its supply
world,” he says. “We have to get stuck
chain. “A lot of manufacturers look at
into managing the watersheds in those
their water consumption in their
areas in a literal sense.” In different
manufacturing processes and attempt
countries, water rights vary not only
to drive it down. We’ve got ours down
in entitlement but delivery, limiting the
to a low level already, but that’s kind of
efficiency with which farmers can
the wrong focus,” Frost says, adding
make use of their water.
that 37 of AB InBev’s breweries around
160
In the Bajío region of Mexico,
the world are located in high water
farmers have the right to a certain
stress areas and, with the increasing
volume of water for irrigation. When
impact of climate change, it is expect-
the opportunity to have it arises, they
ed that this will rise to 50 by 2030.
must take all of it at once or risk having
“ I think the organisation as a whole is learning more and more that sustainability really is our business now”
— Matthew Frost, Global VP Raw Materials Procurement and Sustainability
M AY 2 0 1 9
CLICK TO WATCH : ‘HOP SUMMIT 2018’ 161 their entitlement cut. “Because of this, they use what we call flood irrigation, which is very costly and inefficient. You saturate the place with water and only so much of it is used by crops while the rest is -wasted,” explains Frost. The challenge here is that, while AB InBev can advise on the best time and volume with which to irrigate crops, the water regulations throw up a barrier to optimising the process. “This is an area where we’re getting involved by emphasising the issue, demonstrating what can be done to resolve it, and trying to use our corporate affairs e uro pe .busi ne ssc hief. com
ANHEUSER-BUSCH INBEV
$54.6bn+ Approximate revenue (2018)
2008
Year founded
162
182,915+
Approximate number of employees
M AY 2 0 1 9
CLICK TO WATCH : ‘100+ 2025 SUSTAINABILITY GOALS’ 163 muscle to get things to change for the
returnable bottle fleet, as we call it,”
common good.”
says Frost. “This is by far the most sustainable packaging; you just send
CIRCULAR PACKAGING
the bottle back to us. In some countries,
As part of its Circular Packaging pillar,
we can get 40 turns out of that return-
AB InBev has set the target of ensur-
able bottle. There are some costs
ing that by 2025 100% of its packaging
associated with transporting the
will be either returnable or made from
empty bottles back and cleaning them
majority recycled materials. Drinks
so they can be reused but, ultimately,
bottles have traditionally had the
that’s massively outweighed by the
propensity for being single use, and AB
fact you’re not remanufacturing those
InBev has been working tirelessly to
bottles 40 times over.”
both enable and incentivise recycling
In markets where there is less of
of its bottles. “We use returnable
a social impetus to recycle, AB InBev
bottles in a lot of our geographies – our
deploys ‘one-way glass’ that it anticie uro pe .busi ne ssc hief. com
ANHEUSER-BUSCH INBEV
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Transforming quality and sustainability. Together. Novozymes is the world leader in biological solutions. As the world’s largest provider of enzyme and microbial technologies, our bioinnovation enables improved quality and sustainability of food & beverages, higher agricultural yields, lowrenewable fuel, and many other benefits that we rely on today and in the future. We call it Rethink Tomorrow.
Click here to learn more about Novozyme’s Brewing Enzymes
M AY 2 0 1 9
CLICK TO WATCH : ‘BREWERS ON TAP | EXPLORING THREE BREWERY FOUNDERS’ UNABASHED PASSION FOR BEER’ 165 pates will be smashed or otherwise damaged, aiming to reclaim as much of this glass as possible for remanufacturing. These efforts are mirrored by its commitment to recycling aluminium and PET, with AB InBev setting targets for its third-party suppliers to increase their use of recycled materials alongside the optimisation of recycling at its own vertical plants. Its endeavours in this area are given a boost by shifting moods on a generational level. “We are finding that young, legal drinking age
“ We gave those startups some additional seed capital and inserted them along our supply chain” — Matthew Frost, Global VP Raw Materials Procurement and Sustainability
adults are becoming ever more aware of the environmental impact of manue uro pe .busi ne ssc hief. com
ANHEUSER-BUSCH INBEV
“ It’s really a win-win-win: a win for us, a win for the environment and a win for the local grid” — Matthew Frost, Global VP Raw Materials Procurement and Sustainability
166
facturing and the products they
by another significant commitment:
consume,” notes Frost. “People are
ensuring that the company’s energy
more attuned to it, and we’re definitely
consumption is 100% renewable by
trying to push that agenda and
2025. This aim goes deeper than
continuously explain why returnable
simply purchasing green energy
bottles are the better option.”
contracts, however, as AB InBev has invested in purchase power agree-
CLIMATE ACTION
ments (PPAs) that generate additional
All of these factors tie into the overall
renewable electricity for the local grid.
mitigation of AB InBev’s environmental
“Because the unit cost of wind and
impact. They are joined, however,
solar power has been coming down
M AY 2 0 1 9
InBev worked with a carbon disclosure project in 2017 to set a baseline for its supply bases’ CO2 emissions and subsequently set goals for those suppliers to cut their emissions. Frost adds that realisation of its ambitious goals across each of AB InBev’s pillars has been driven in part by its sustainability accelerator, set up to define the challenges the supply chain transformation poses in relation to those goals and inviting startups to solve them. “We gave those startups some additional seed capital and inserted them along our supply chain, enabling them to grow faster by working directly with the people in it,” says Frost, citing its blockchain platform as an example of the success the accelerator substantially in the past few years, we
has produced. “That’s been extremely
have found that every deal we do leads
successful, so we have a number of
to a guaranteed lower cost of power
startups which are growing very quickly
versus grid-available in each of our
as a result of having that involvement in
locations,” Frost explains. “It’s really
our supply chain.”
a win-win-win: a win for us, a win for the environment, and a win for the local grid.” In addition, the company’s Climate Action pledge includes a commitment to reduce carbon emissions across its value chain by 25%. To tackle this, AB e uro pe .busi ne ssc hief. com
167
168
PADDY POWER BETFAIR TARGETS PROCUREMENT EFFICIENCY WITH DIGITAL TRANSFORMATION WRITTEN BY
SOPHIE CHAPMAN PRODUCED BY
JUSTIN BRAND
M AY 2 0 1 9
169
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PA D D Y P O W E R B E T F A I R
As the company invests more in technology, Paddy Power Betfair is ensuring efficient procurement processes with spend analytics, as Colum Colbert explains
W
ith the gambling industry continuing to evolve with changing legislation and new technologies, Ireland’s
Paddy Power Betfair (PPB) has operations across Europe, America and Australia. The firm manages several brands which have 170
evolved along with the industry. When Paddy Power was founded in 1988, it followed a traditional gambling model with shops on high streets. As well as growth within its business model, the company has expanded its global presence through mergers and acquisitions. In 2010, Paddy Power acquired Sportsbet, one of Australia’s leading bookmakers. In 2015, Paddy Power and UK-based Betfair agreed to merge. Since the merger, the company has sought to increase its global operations further. Director of Procurement, Jack McMahon, joined Paddy Power – prior to its merger with Betfair – in April 2015. McMahon has over 20 years’ experience in procurement, operations M AY 2 0 1 9
171
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PA D D Y P O W E R B E T F A I R
“ My advice here is clear and simple: choose your suppliers carefully. Look for those who truly can be your partners.They can be critical to your success” 172
— Colum Colbert, Head of Procurement Services at Paddy Power Betfair
M AY 2 0 1 9
and supply chain. With this he sought to implement standard processes and procedures to support stakeholders within PPB. “Our focus has always been to support the business proactively in engaging with our supply base. Our job is to maximise value and minimise risk,” Jack says. “Our long term plan is to operate on a common platform for systems, process and procedures. Hence, our Global team can have a standard language and get to best practice. This also helps offer opportunities
CLICK TO WATCH : ‘PADDY POWER – STANDING OUT’ 173 to staff to transfer between Regions
arranging supply, making sure that the
and develop within PPB.”
supply chain is uninterrupted and
Colum Colbert joined Paddy Power
monitoring quality throughout. The
five years ago. He has been working
second is achieving good value for
with the procurement team for the past
money within that supply chain. Now
two years. “Within procurement, my
that I’ve worked in the industry in PPB
own area of Procurement Services is
for two years, I think these two activities
not about sourcing. Procurement
are part of a bigger picture. I think they
Services manage the procedures,
both fit into a greater overall context of
policies and the systems – what I would
managing supply chain risk. Besides
call the ‘infrastructure’ – that enables
risks around security of quality supply
and supports procurement.” He argues
and value for money, there are also
that procurement has traditionally
legal, tax and IT security risks.”
centered around two things: “The first is security of quality supply, such as
The Procurement Services Head suggests that since joining the e uro pe .busi ne ssc hief. com
PA D D Y P O W E R B E T F A I R
174
M AY 2 0 1 9
company, he has witnessed greater
“With a clearer systems strategy in
embedding of its PO system. Provided
place, we have been introducing various
by Oracle, Colbert notes that the role
tools that enable us to achieve procure-
of this system in the P2P process has
ment excellence, what we call ‘Procure-
become clearer to the wider business
ment 2.0’. A good example has been our
overall. The key message of “No PO –
implementation of spend analytics
No Pay” is gaining traction for an increas-
provided by Efficio. We have achieved
ing share of the company’s spend. The
global spend analytics with spend
PO system has created a greater sense
categorised according to procurement-
of spend governance in the company’s
relevant taxonomy. This facilitates
overall P2P systems strategy.
global category management and
Colbert also observes that over the past two years, operations within his
savings planning,” comments Colbert. The partnership with Oracle is enabling
team have become more concerned
the firm to transform its process for
with achieving and delivering best
contract preapproval, or Deal Sheet.
practice, policies and procedures.
This process helps manage legal, tax,
E XE CU T I VE PRO FI LE
Colum Colbert A Chartered Accountant, Colum formerly worked for 12 years as a manager in Baxter Healthcare’s Finance Shared Services Centre. Here, he managed areas including Finance Training, AP, Procurement Services and GL. He joined Paddy Power Betfair (PPB) plc in late 2013 as Senior Manager for Disbursements, covering AP and Payroll. Since 2017, Colum has led PPB’s Procurement Services team, responsible for driving Systems strategy.
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mmc.com
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STRONG
COUNTRIES
“ Efficiency is critical.We don’t want to invest in anything that — Name of Person, makes life Position and company less efficient” — Colum Colbert, Head of Procurement Services at Paddy Power Betfair
177
IT security and value-add risks in buying.
enabler for people to engage in
By using the Oracle cloud technology,
procurement activity.”
with the help of developer Namos
This concept of partnership with sup-
Solutions, the betting business is
pliers has been key to PPB’s systems
transitioning from a manual to a more
strategy to date. “Many suppliers may
automated process. Paddy Power
claim to be ‘partners’ of their custom-
Betfair are also implementing Market
ers. However, this may often be a mere
Dojo’s eRFx tool to streamline tendering.
cliché or lip-service”, Colbert states.
“Efficiency is critical. We don’t want to
“On our procurement systems journey,
invest in anything that makes life less
our providers truly have been good to
efficient,” says Colbert. “I hope that this
us and for us. I have been astounded
technology and automation develop-
by their flexibility and customer service
ment makes it easier and becomes an
ethic”, adds Colbert. “For example, e uro pe .busi ne ssc hief. com
PA D D Y P O W E R B E T F A I R
178
“ Our focus has always been to support the business proactively in engaging with our supply base. Our job is to maximise value and minimise risk” — Colum Colbert, Head of Procurement Services at Paddy Power Betfair
M AY 2 0 1 9
179
e uro pe .busi ne ssc hief. com
PA D D Y P O W E R B E T F A I R
1988
Year founded
2016
Merged with Betfair
190
Shops located in Ireland
180
Market Dojo sold us an eRFx licence.
meet our bespoke requirements. The
They then stayed with us and ‘held our
common denominator among these
hand’ as we actually launched suc-
providers was that they didn’t simply
cessful eRFx events. Efficio, our spend
sell and then leave us”, Colbert states.
analytics providers, have shown great
He adds “my advice here is clear and
agility in quickly turning around requests
simple: choose your suppliers care-
for data loading, analysis and reporting.
fully. They can be critical to your
Namos Solutions, builders of our Deal
success or failure”.
Sheet tool, invested huge efforts in customising Oracle technology to M AY 2 0 1 9
In the coming years, Colbert expects the company to have a more globally
181
integrated procurement function that
of course have to integrate our procure-
collectively encompasses systems,
ment function with these new compa-
processes, policy, and supplier and
nies too,� Colbert concludes.
risk management. “We will globally integrate more of the procurement activity across the existing Paddy Power Betfair entities. There may even be more entities and brands within our business. If Paddy Power Betfair makes further acquisitions, we would e uro pe .busi ne ssc hief. com
182
A SUSTAINABLE AND PROFITABLE FUTURE WRITTEN BY
HARRY MENEAR PRODUCED BY
CAITLYN COLE
M AY 2 0 1 9
183
e uro pe .busi ne ssc hief. com
CBRE
Joe Gomez, Head of Energy & Sustainability at CBRE, discusses sustainability in the facilities management space and the ways the company creates value for its clients
O
ver 40% of the world’s energy is consumed by commercial and industrial buildings. At a time when the need for climate action
and sustainability reform is greater than ever before, global real estate services and investment firm CBRE’s Global Workplace Solutions (GWS) division 184
is working to leverage new technology, alongside the combined experience of over 80,000 employees, to ensure the world’s leading companies are also sustainability leaders in the private sector. “We work across a broad, diverse background of clients with different needs and specialisations around their energy and sustainability appetites. Our goal is to create value for them in that space,” says Joe Gomez, Head of Energy & Sustainability, EMEA. We sat down with Gomez to find out how CBRE is delivering sustainability at a profit to its impressive roster of tier one clients. Gomez and the GWS division work across four different major verticals. “We work with major players in the industrial oil and gas business, in banking and insurance, technology, and life sciences and pharmaceuticals,” explains Gomez. M AY 2 0 1 9
185
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Better air for the built environment There is a real drive for building occupants, managers and owners to utilise resources within the built environment more effectively now more than ever before. At VES, we know that understanding and influencing energy and sustainability will continue to be a critical facilitator in providing ever increasing control of good decision making. Our ability to respond to changes in building usage is strengthened by being aware of the choices made at business level, as we work to help stakeholders meet their environmental and commercial goals. We must also remain mindful of our long-term responsibilities to find ways to improve how we utilise precious resources as we develop over time. We believe that by embedding energy and sustainability goals and drivers within all our strategic decisions, we ensure constant progress and real tangible benefits along our transformation journey.
Our Collaborative Approach We work closely with business and technology partners to allow us to build upon the fundamentals of their expertise; key partners include Ziehl Abegg for fan & motor technology, Siemens Building Technology for controls and building integration, Hoval for energy recovery technology. Like us, their vision lies in creating energy efficient and sustainable environments to ensure technologies are used to the fullest potential; making every improvement easier to implement and longer lasting whilst ensuring future value can be unlocked through data built within the DNA of the solution. By bringing together these leading technologies within our own field of expertise in heating, ventilation and air conditioning, we can not only build ventilation systems to meet energy and sustainability standards for new buildings - we can facilitate energy improvement solutions for existing buildings which create lasting value and make a difference to occupants, building operation and environmental impact. No single technology applied in isolation can drive the energy and sustainability requirements of the future; just like our business partnerships, solutions are best achieved through a collaborative approach based upon tangible data and information which ensures consistent effective results with the ability to continuously drive
improvements through using the embedded data, which is captured and analysed as part of the solution. Replacing a belt driven centrifugal fan with an EC plug fan to perform the same duty can yield notable energy savings on its own. However, by understanding the purpose and usage of the area being served, we can ensure that even more energy is saved through optimised fan and motor selections and introducing modulating speed in response to intelligent demand control. We can use occupancy readings to ensure energy used on heating can be effectively reduced by introducing a controlled balance between fresh air intake, return and recirculated air, and usage of energy recovery devices such as thermal wheels. Along with associated reductions in maintenance requirements, and by working with our partners to bring together solutions in multiple air handling systems across buildings or whole estates, we can assist you and your partners in making a real and lasting impact on energy and sustainability in the buildings and estates you are responsible for.
Business case and investment By packaging our energy and sustainability business cases so they make sound business and financial investment sense, proposals can be delivered with equal priority alongside more conventional business investments. With the ever-growing pressures on the cost and utilisation of resources within the built environment, our energy and sustainability investments can provide far greater financial return and value than many other capital investments being considered. We have a wide spectrum of technical experts covering the UK, ready to meet and evaluate possible energy initiatives helping you progress along your own energy and sustainability journey. For more information: 023 8046 1150 | ves.co.uk | sales@ves.co.uk | LinkedIn Offices in Southampton, London, Manchester, Glasgow and Birmingham
CBRE
“ We work across a broad, diverse background of clients with different needs and specialisations around their energy and sustainability 188 appetites” — Joe Gomez, Head of Energy & Sustainability, EMEA
M AY 2 0 1 9
When taking on a new client, CBRE prides itself on being a full spectrum provider of a complete range of solutions. Through a number of years of experience of working with property portfolios of large global occupier clients, CBRE has developed an Energy Pathway product. This is now our standard proven approach to implementing an energy strategy for any of our accounts/clients. The methodology takes the client on a 10-step journey through energy management and allows for a tailored approach to be developed for each
CLICK TO WATCH : ‘THE SEAMARK BUILDING, ELM PARK, DUBLIN, IRELAND’ 189 portfolio. The core elements of this
all the time. Once you’re on this wheel,
program define our three major offerings.
the idea is that you keep it going and the
The company calls its three major
process will become self funding,
offerings “Buy Smart, Use Smart and
because of the amount of value that
Be Responsible”. Gomez explains:
you’re creating and releasing. CBRE is
“The supply side energy management
in the business of being a full provider
is ‘Buy Smart’; demand side energy
of all of these services.”
management is ‘Use Smart’; and ‘Be
There are three principal areas in which
Responsible’ is about sustainability.
CBRE creates value for its customers
That’s the wheel of services that we
through sustainability: profitability,
offer. We bring them in at whatever level
brand and risk management. “Our goal
our client is currently at and plug all the
is to help a company generate its
gaps to make them a fully comprehen-
output in the most energy efficient way,”
sive energy and sustainability business
explains Gomez. “There needs to be
that is creating value and mitigating risk
a business case to make sustainability e uro pe .busi ne ssc hief. com
Transform your energy challenges into business advantage Centrica Business Solutions and CBRE have joined forces in a preferred partnership arrangement to help businesses tackle the four major energy challenges of high costs; power supply disruption; operational efficiency, and sustainability.
Energy costs are volatile and rising. Power grid instability and extreme weather events are increasing energy supply risk. Employees, customers, shareholders and regulators expect you to be green and energy efficient. Ageing energy infrastructure may be pushing up your operational and maintenance costs, while compromising productivity
It’s time to rethink your long-term energy strategy and take a proactive approach to lower carbon, lower cost, lower risk energy management. Expert support from world-leading energy solutions providers Centrica Business Solutions’ partnership with CBRE brings together the vast expertise and resources of two world-leading energy services and solutions providers. Jointly, we provide complete end-to-end support to integrate advanced energy technologies into long-term sustainable energy strategies. In this way, your business can increase profitability, productivity, energy security and environmental credibility.
See how we can help
Time to power up your long-term energy strategy The radical shift from traditional centralised energy generation to decentralised and digitised energy opens exciting new opportunities to gain business advantage from higher energy performance.
Goodbye passive top-down energy consumption. Welcome to the next generation possibilities of optimsing, monetising and controlling your sustainable energy strategy. Benefits of distributed energy Advances in intelligent digital energy technology provide cost-efficient distributed energy solutions that reduce risk and secure a more competitive and environmentally sound future. Centrica Business Solutions, part of the global energy and services company Centrica Plc, is a strategic energy partner for business – delivering outstanding results and stretching the boundaries of what’s possible. We design, build, finance, operate and maintain intelligent, end-to-end distributed energy solutions – enabling you to analyse, generate, store and monetise your energy. We have expertise in cutting-edge energy insight and prediction; on-site generation from solar and cogeneration; battery storage; back-up power; energy asset management, and demand-response aggregation.
Learn More
These exciting opportunities to redesign energy strategies and embrace the opportunities of localised, distributed energy solutions are hugely underexploited. We can remove investment barriers Some businesses are slow to adapt to new opportunities because they believe that it’s too complex, too risky, or too costly. However, with two of the world’s most capable and technically advanced energy solutions providers in your corner, these barriers quickly disappear. Together, Centrica Business Solutions and CBRE have the proven capabilities to deliver a complete smart energy program that mitigates risk and delivers powerful results. We’re here to support your long-term energy vision and distributed energy projects every step of the way – from design and development – to installation – through to long-term monitoring and operation. The cost of implementing innovative distributed energy solutions is falling and the return on investment is impressive. However, if lack of finance or competing funding priorities are frustrating your energy ambitions, Centrica Business Solutions provides long term flexible finance options. We have a long and proven track record of funding both CAPEX and OPEX costs via the ongoing energy and operational savings, with built in performance guarantees to mitigate risk. In this way we can accelerate delivery of the end-to-end clean energy solutions.
Discover how Centrica Business Solutions and CBRE can help you transform your energy performance and future-proof your business growth.
CBRE
$21.3bn Approximate revenue (2018)
1906
Year founded
80,000
Approximate number of employees 192
M AY 2 0 1 9
attractive.” The first value opportunity
peak hours. “They can then bank that
that CBRE provides revolves around
obligation as a virtual power station
a “reduction in spend and therefore an
and do that multiple times around the
increase in profitability. Our customers
country,” explains Gomez. “Then they
reduce what they spend on their energy,
could have 20 megawatts of energy
getting back any revenue they’ve
that can be used to shave peak demand.
overpaid on their energy bills, and they
When the whole country puts the kettle
actually can drive revenue into their
on during Bake Off adverts, they don’t
coffers if their national grid has programs,
have to turn another gas turbine on; we
known as demand side response
can use this virtual power plant.” CBRE
schemes, that will pay clients to turn
has a full matrix of over 150 initiatives
load off,” says Gomez. Demand side
that can be used to make savings on
response schemes involve financially
clients’ energy. “We work on a traffic
incentivising grid users to reduce or
light system,” explains Gomez. “Our
shift energy consumption away from
goal is to take every red and amber box
E XE CU T I VE PRO FI LE
Joe Gomez Joe Gomez has served as Head of Energy & Sustainability at CBRE since 2016. He is a Warwick Business School MBA and a UK Chartered Energy Engineer, with a specialisation in Energy, Building Services, Refrigeration & HVAC sectors. In his role at CBRE, Gomez creates value for his customers through utility price reduction, productivity improvement, brand enhancement, supply and demand side energy management. He is responsible for the operation of CBRE’s energy and sustainability platform, as well as the company’s energy and utilities management services.
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CBRE
Watch the video
SmartServices click to find out how
where there’s the potential for an energy saving and turn it green. By doing this we not only save the client money but also make that building itself greener. That will then give that business the best carbon credentials they could possibly have.” CBRE is the trusted advisor and partner to its clients. “We’re there to run and manage their property,” says Gomez. “We don’t make anything or sell any products, but we sell our expertise and human horsepower.” Over the years, CBRE has built up its
“ The goal is to turn every building green over a course of time. That will then give that business the best carbon credentials they could have” — Joe Gomez, Head of Energy & Sustainability, EMEA
relationship with a trusted network of e uro pe .busi ne ssc hief. com
195
CBRE
third party suppliers and contractors. One such company is VES. Founded in 1968, VES provides energy efficient ventilation and air handling solutions across multiple verticals in the industrial and commercial real estate space. “We believe VES is one of the best air handling units and air flow management businesses in the country,” says Gomez. “What you get is a bespoke solution that fits your needs at a high quality standard. We believe that their attention to detail and their thoroughness is something we would stand 196
behind.” Another avenue through which CBRE can drastically improve the sustainability of a property is its lighting system. “We work closely with global lighting provider Sylvania in delivering efficient and comprehensive lighting solutions to our client base,” explains Gomez. “Sylvania have a knowledgeable and committed team of professionals supporting us and they act as an extension of the GWS value chain in scoping, designing and delivering value.” Secondly, CBRE manages its clients’ sustainability branding, helping clients to position themselves on indices like the Dow Jones Sustainability index, M AY 2 0 1 9
the FTSE4Good, the Carbon Disclosure Project and the Global Real Estate Sustainability Benchmark,” says Gomez. “These rankings show the world our customers’ green credentials. If they occupy the top spots on those indices, not only is it good for their brand and good for how attractive they are to their market, but it also drives greater transparency between the company and its customers.” Thirdly, CBRE offers risk management through its sustainability expertise. “The energy and sustainability landscape has experienced a proliferation of financial and legislative requirements, driven by the United Nations Climate Change Program to deliver a world to our grandchildren that’s 1.5 degrees cooler than if we don’t take action,” notes Gomez. CBRE manages the risks of compliance for its customers so that “whether they’re lending money or making Nurofen, we take away their compliance headaches and minimise their exposure to the financial impact of those regulations and penalties”. The sustainability service CBRE provides is linked to three major trends in the industry, which Gomez calls “the three Ds: de-carbonisation, decentralie uro pe .busi ne ssc hief. com
197
CBRE
198
“Because if you drive something more efficiently you drive it more reliably. And if you drive it more reliably, you’re driving better facilities management” — Joe Gomez, Head of Energy & Sustainability, EMEA
M AY 2 0 1 9
199
e uro pe .busi ne ssc hief. com
CBRE
100
Clients served worldwide
450
Offices worldwide
18 years 200
Voted the industry’s top brand by the Lipsey Company
sation, and digitisation”. De-carbonisa-
to overtake fossil fuels for the first
tion reflects the global movement away
time as the UK’s primary electricity
from fossil fuels in favour of renewables
source.” Over the summer of 2018,
like wind, solar and geothermal energy.
renewable energy already exceeded
In addition to the moral imperative,
other sources during periods of intense
CBRE uses the rapid advance of green
sunshine, and in 2018 UK energy
technologies like battery storage and
production from coal fell by 25%.
photovoltaics to “make sure people will
“That’s a consequence of that agenda
do something because it makes
being driven and price points begin-
financial sense as well.’’ In January,
ning to compete with and become
Business Green reported: “As early
better than traditional methods,”
as 2020, renewables are on course
says Gomez.
M AY 2 0 1 9
way, which reduces reliance on the grid and creates more resilient local operations.” CBRE maintains strong ties with energy companies that emphasise sustainability in their offerings and are making strides towards a decentralised energy future. Centrica is a multinational energy and services company with its headquarters in Windsor, Berkshire, that is moving into decentralised power generation options. “What they’re doing is moving into distributed energy solutions, which take the energy they are providing to their clients, but design those solutions to be so efficient that the customer uses less energy,” Gomez says. “Centrica have their own Combined Heat and Power (CHP) business in Manchester. They’re the only CHP The second trend, decentralisation,
manufacturer in the UK. They have their
involves the restructuring of energy
own metering business, their own battery
distribution infrastructure on a global
storage business and their own solar
scale. “We as a nation and as a planet
business. They provide the full technical,
cannot continue to feed our need for
project management and funding agre-
energy by building more power stations
ement solutions we believe a customer
ad infinitum, and by digging up the
could utilise. So, we have a preferred
roads and laying more and more copper
arrangement with them,” he explains.
wire to bring us more and more energy.
Digitisation, Gomez believes, will allow
That’s just patently unsustainable,”
CBRE to increase both efficiency and
Gomez explains. “We should be looking
sustainability for its clients. “If you put
to generate energy in a decentralised
a sensor on every moving part of e uro pe .busi ne ssc hief. com
201
CBRE
“ VES, we believe, is one of the best air handling unit and air flow management businesses in the country” — Joe Gomez, Head of Energy & Sustainability, EMEA 202
everything, you’d have ultimate and infinite knowledge of the machinations of our needs in life, right?” Gomez asks. “Now, if you put a sensor on every part of a building – its windows, boilers, chillers, air handlers, low voltage power points and its computers – you could identify a problem and fix it before the building’s occupants were even aware something was wrong. Not just if someM AY 2 0 1 9
thing was broken, but if it was about to break.” Gomez believes that the power of predictive analytics and automation will dramatically change the real estate management industry. “That continual progression towards complete data transparency on everything that moves is the goal,” he says. Looking to the future, Gomez believes that digitisation will continue to have an exponentially magnified effect upon the sustainability space. “Digitisation is the way forward, not only with respect to facilities management, but in respect to the ability for facilities management to be driven by smart decisions around energy,” Gomez emphasises. “Because if you drive something more efficiently you drive it more reliably. And if you drive it more reliably, you’re driving better facilities management.”
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204
Danone: sustainability transformation in food and beverage WRITTEN BY
LAURA MULLAN
M AY 2 0 1 9
205
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DANONE
Food and beverage heavyweight Danone has earned its stripes as a sustainability champion – but what’s the secret behind its success?
F
rom evian water to Activia yoghurts, Danone’s products are now a mainstay of any household fridge or supermarket
shelf. Under its banner, the food and beverage giant 206
hasn’t just invented iconic flavours, it’s also made a name for itself as a sustainability powerhouse. In 2017, Danone unveiled a refreshed logo and its very first company signature: ‘One Planet. One Health’. This slogan underlines the French multinational’s belief that the health of people and the planet are inherently interconnected. It also marked a call to action, urging consumers to join the ‘food revolution’ and adopt healthier, more sustainable eating and drinking habits. It’s an impressive mantra, but Danone’s commitment to health and sustainability stretches back much further. In fact, it’s almost as old as the company itself. In 1919, Danone’s founder, Isaac Carasso, noticed that many Spanish children suffered from intestinal infections. Echoing the previous work by Nobel laureate and Pasteur M AY 2 0 1 9
207
e uro pe .busi ne ssc hief. com
â‚Ź24.7bn+ Approximate revenue
1919
Year founded
10,000+
Approximate number of employees 209
Institute director, Ilya Mechnikov, he
ment Goals of the United Nations,
launched a yoghurt which marked the
these objectives include: offering
birth of the Danone brand. Fast forward
superior food experiences and
to today and the Paris-headquartered
innovation; delivering stronger sustain-
firm is present in over 130 markets with
able profitable growth; becoming a
a slew of beloved and trusted products
certified B Corp; impacting people’s
including essential dairy and plant
health locally; and growing Manifesto
based products, early life nutrition,
brands as well as preserving and
waters and medical nutrition.
renewing the planet’s resources.
Keen to stay laser focused on its
On top of this, the firm has also
sustainable vision, Danone has
pledged to foster inclusion and growth,
pinpointed nine ambitious goals that it
serve the food revolution with partners,
hopes to achieve by 2030. Aligning
and entrust its people to create new
with the 2030 Sustainable Develop-
futures. Revealing these ambitious e uro pe .busi ne ssc hief. com
DANONE
“In 2017, Danone unveiled a refreshed logo and its very first company signature: ‘One Planet. One Health’”
210
M AY 2 0 1 9
211
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PURPOSE LED, PERFORMANCE DRIVEN
The most comprehensive sciencebased animal nutrition solutions, intelligently scaled to solve the sustainability and commercial challenges we face in transforming how we feed the world. Stay connected at dsm.com/anh @dsmfeedtweet dsmanimalnutrition linkedin.com/showcase/dsm-animal-nutrition-and-health/
213
goals, Emmanuel Faber, Chairman and
cant strides towards these objectives.
CEO of Danone, said that he believes
Last year, Danone North America
“each time we eat and drink, we can
became the world’s largest B Corp, a
vote for the world we want”. He added:
key social and environmental milestone
“This has inspired the definition of our
for the firm which shows it has met the
long term goals which flow directly
“highest standards of verified social
from our ‘One Planet. One Health’
and environmental performance,
vision. As we strengthen our business
transparency, and accountability”.
model and nourish our dual economic
In 2017, the firm also reported that 86%
and social project, we have every
of its total packaging (and 77% of its
confidence we will deliver our business
plastic packaging) was reusable,
and financial agenda, as well as create
recyclable or compostable. This is just
and share sustainable value for all.”
the beginning: by 2025, the firm aims to
Danone has already made signifi-
ensure that every piece of packaging, e uro pe .busi ne ssc hief. com
DANONE
214
from bottle caps to yoghurt cups, is
partnerships to make
recyclable, reusable or compostable.
At the same time, Danone has also
for instance, evian is taking part in
made consistent efforts to reduce its
a research mission with The Ocean
waste and optimise material use, for
Cleanup, a Dutch nonprofit startup that
instance, the firm plans to introduce
has created advanced technologies to
alternatives to plastic straws, launching
help rid the oceans of plastic, whilst
a pilot under its Indonesian brand
elsewhere Danone AQUA has pledged
AQUA. Additionally, it’s also trying to
to recover more plastic than it uses in
eliminate non-recyclable shrink film
Indonesia. On top of this, the French
by using specially designed adhesive
business is also a proactive member of
for its evian water brand.
the Sustainable Food Policy Alliance
Danone has also forged meaningful M AY 2 0 1 9
its plastic-free vision a reality:
alongside industry peers such as Mars,
215
Nestlé and Unilever. Aiming to advance
“a balanced, profitable and sustainable
public policies that improve transpar-
growth model”, according to the firm.
ency for consumers, support farm
Through this initiative, Danone aims
communities, and tackle climate change,
to generate cost savings of €1bn by
the alliance is set to be a game changer
2020 by making efficiency an ingrained
for policy action, shaping the wider
part of day-to-day business.
food and beverage industry at large. This sustainable ethos also extends
In order to include its employees on this sustainability roadmap,
to Danone’s top and bottom lines.
Danone’s workers are also set to
Indeed, the food and beverage firm
receive one Danone share to deepen
has recently launched an efficiency
their ownership mindset. The firm has
programme called Protein that
also developed an internal platform
is designed to help Danone build
with extensive sharing and learning e uro pe .busi ne ssc hief. com
DANONE
M AY 2 0 1 9
resources to help employees support
that “there is only one earth, we only live
the firm’s vision and goals. But it’s not
once.’’ Those words kick-started a vision
just employees who are an important
that lives on today. Now, sustainability is
catalyst of this sustainability drive.
an intrinsic part of Danone’s DNA, just
Indeed, Faber highlights how consum-
as much as its beloved brands and
ers are an integral part of this transfor-
flavours. With its 2030 goals, the
mation journey and how they’ve pushed
French food and beverage giant has an
the firm to better itself. “Consumers are
ambitious roadmap underway, which is
craving change,” he says. “They expect
about actions as well as words. Now,
large organisations like Danone to
with the help of its employees, con-
bring our scale of impact to change
sumers and partnerships, Danone’s
the world for the better.”
sustainability vision is almost in grasp.
With this in mind, it seems sustainability is set to remain a core tenet of Danone’s strategy in the years to come, just as it has been since the business was founded almost a century ago. Indeed, Antoine Riboud, the first Danone Chairman and CEO, said in 1972 e uro pe .busi ne ssc hief. com
217
218
ACHIEVING SUCCESS IN THE DIGITAL SPHERE THROUGH HARNESSING TECHNOLOGY WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
JAMES PEPPER
M AY 2 0 1 9
219
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ACCENTURE
Rob Gwyther, IT Transformation Director of Healthcare at Accenture, discusses how technology is implemented in alignment with the customer
W
ith companies worldwide undergoing significant digital transformations to redefine the way day-to-day operations
in the workplace are conducted, it’s become vital to embrace and utilise the latest technological trends in order to obtain an edge over the competition. 220
As a global professional services organisation providing a range of different services such as strategy, consulting, technology, digital and operations, Accenture employs over 450,000 people and works across more than 120 countries worldwide. By ensuring customers’ demands are met and kept at the forefront of the firm’s priorities, Rob Gwyther, IT Transformation Director of Healthcare, understands how Accenture can continue to meet the requirements of its customers as it continues to develop as a company. Having worked for the organisation in a variety of roles since initially joining in 2005, Gwyther stepped into his current role as Director in late 2015. “When I first started at Accenture, a lot of the work we undertook in the public sector organisation was about the digitisation of manual processes to reduce paper and make the customers internal M AY 2 0 1 9
221
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ACCENTURE
“ It’s normally about looking at what really makes sense from a business perspective and deciding what edge you’re gaining” 222
— Rob Gwyther, IT Transformation Director of Healthcare at Accenture
M AY 2 0 1 9
workflow more efficient. The focus was primarily on internal systems and workflow,” he explains. “However, with technology evolving significantly over the years, operations have become easier and the trend is now focused on how to provide more self-sufficient digital services to the citizen and focus more heavily on the citizens’ journey and experience.”
EMBRACING TECHNOLOGY With technological advances increasingly influencing the way businesses
CLICK TO WATCH : ‘ACCENTURE HEALTH TECHNOLOGY CONSULTING – HARNESSING TECHNOLOGY’ 223 operate on a day-to-day basis, Gwyther
tive and deciding what edge you’re
understands the importance of ensuring
gaining. With some of our customers,
new tools and solutions serves
we recommend retaining older legacy
a purpose, as long as it aligns to the
systems that are still reliable or can be
initial core strategy. “It’s vital to under-
stabilised to support transformative
stand exactly what benefit you’re
services. That’s where it’s important to
extracting from a particular type of
think about why you’re actually imple-
technology or programme, however,
menting technology and how the
most importantly that benefit must be
benefit aligns to an overall strategy. It’s
aligned to a core strategy before you
natural to think about a straight technol-
implement it in order to generate as
ogy replacement but it’s worth consid-
much value as you can. It’s easy to get
ering that if we stabilise the core of our
distracted,” he explains. “It’s normally
business and then build a layer on top,
about looking at what really makes
it can actually yield greater benefits in
sense from a business value perspec-
shorter time.” e uro pe .busi ne ssc hief. com
ACCENTURE
“ It’s vital to understand exactly what benefit you’re extracting from a particular type of technology or programme” — Rob Gwyther, IT Transformation Director of Healthcare at Accenture 224
M AY 2 0 1 9
With innovation considered a key
and the investment we make in innova-
focus area for Accenture, Gwyther
tion. Now, we have an innovation
affirms the company’s commitment to
architecture and a formalised way of
setting trends in order to stand out
implementing innovation. When you
from its rivals. “We’re a good systems
look at the innovation centres we’ve
integrator; we see a lot of what’s out
got worldwide and the investment that
there in the market and it enables us
goes into them, you see some of the
to figure out what’s relevant and useful
real concentrated bits of innovative
to suit our needs. We’re constantly
work and can really understand the
mapping out ways in which we can
leap forward we’ve made ahead of
serve our customers better, and that
some of our competitors.”
continually pushes us to innovate and keep an open mind,” says Gwyther.
FORMING KEY PARTNERSHIPS
“The big difference today in comparison
With a view to achieving and sustaining
to when I first joined is the coordination
mutual success, some companies
E XE CU T I VE PRO FI LE
Rob Gwyther Rob is a senior IT and technology leader, with over 15 years of experience. He works with clients to shape and deliver complex technical solutions and transformations and has a broad IT skill base. He currently leads Accenture’s health technology delivery practice and is a specialist in healthcare innovation. Rob has worked with a wide variety of organisations, in the public and private sectors, both in the UK and internationally and his breadth of experience ranges from complex programme delivery to developing new business services.
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225
227
choose to collaborate and provide the
a supplier that’s willing to collaborate
other with services to help drive opera-
with you and who has a very like-mind-
tions forward. In the case of Accenture,
ed outlook, then it’s a real asset because
Gwyther outlines what he looks for
then you can then go to market with
when searching for a key technology
that supplier.”
partnership. “We identify companies
Having established significant
where we can work alongside their
partnerships with BitTitan and Appian
leadership and which are aligned with
Corporation, Gwyther believes that
our strategy in key priority areas. It’s
these joint ventures will prove valuable
important to consider what the suppliers
to the company’s development. “Appian
roadmap looks like in terms of how they
is more of a power platform which
want to evolve their product, as well as
allows us to develop workflow and
what kind of engineering team they
applications in an efficient way – it
have at their disposal. If you’ve got
provides a single platform that enables e uro pe .busi ne ssc hief. com
ACCENTURE
“ The relationship we have with our customers is vital. It’s all about how we can continue to innovate and be proactive” — Rob Gwyther, IT Transformation Director of Healthcare at Accenture 228
M AY 2 0 1 9
229
e uro pe .busi ne ssc hief. com
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any development we do or any application we need to build,” explains Gwyther. “BitTitan is a smaller company, but they’ve got a really concentrated bit of technology that allows us to do migrations to the cloud very quickly. It’s that first stage you get when the customer from an on-premise environment into a cloud-based environment and BitTitan provide that very efficiently.” With customers’ demands firmly at the forefront of Accenture’s decision making, Gwyther believes there are a number of key drivers in transforma-
“ Within health and public services, the industry has transitioned towards putting the citizen and patient first from a healthcare perspective” — Rob Gwyther, IT Transformation Director of Healthcare at Accenture
tion in the industry that need to be observed. “Within health and public services, the industry has transitioned towards putting the citizen and patient first from a healthcare perspective. There’s a greater focus on the customer-user experience than ever before,” he explains. “Going back a few years, customers wouldn’t choose a startup or smaller company because of nervousness about the level of service they’d receive. However, there is some really great concentrated technology out there now that can be very useful. I look at our partnership with BitTitan and they’re a good example because e uro pe .busi ne ssc hief. com
231
ACCENTURE
$40bn Approximate revenue
1989
Year founded
470,000
232
Approximate number of employees
M AY 2 0 1 9
although they have really great technology. Our partnerships are really useful and has become one of our key strengths.” With the future in mind, Gwyther affirms Accenture’s relationship with its customers will be key to the business’ growth, development, and building a sustainable future. “The relationship we have with our customers is vital. It’s all about how we can continue to innovate and be proactive. We have a deep relationship with our customers and we try not to be one dimensional,” he says. “I think what’s really important to remember is that technology supports new ways of working, because when you see a trend emerging in one industry, sometimes it’s useful to embrace that and utilise it in another industry.”
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234
Transforming supply chain strategies WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
TOM VENTURO
M AY 2 0 1 9
235
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T C T R A N S C O N T I N E N TA L
John Adams, Senior Vice President & Managing Director of Transcontinental Advanced Coatings, discusses how his business segment is operating in the manufacturing industry amidst significant digital transformation 236
W
ith the world’s leading companies undergoing digital transformations to accelerate operations, it’s becoming
fundamental that businesses employ the latest technological advances to sustain success in the manufacturing industry. John Adams, Senior Vice President & Managing Director of the Advanced Coatings business segment within flexible packaging company TC Transcontinental, discusses his procurement strategy and how his team leverages technology to disrupt and lead the manufacturing sector. “Procurement has been critical to identifying partners that can enable us to achieve our productivity and innovation aspirations,” explains Adams. “We’re always looking at how we can enhance productivity and expand our capacity to enable growth. You can’t have a strong growth strategy without a smart investment strategy.” M AY 2 0 1 9
237
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T C T R A N S C O N T I N E N TA L
“ Procurement has been critical to identifying partners that can enable us to achieve our productivity and innovation aspirations” 238
— John Adams, Senior Vice President & Managing Director Transcontinental Advanced Coatings
M AY 2 0 1 9
With technology considered a key component of Transcontinental Advanced Coatings’ procurement strategy, Adams believes it’s important that his business segment utilize technology in the right way – especially when it comes to safety. “When we think about how we use technology, we think about what the strategic priorities of the business are and decide where we need to invest. Safety is always our top priority,” he says. “Since we use a range of solvent based techniques in our manufacturing processes, it is imperative that we ensure our work environments are safe from any risk of fire at all times.
CLICK TO WATCH : ‘TC TRANSCONTINENTAL – 2019’ 239 As a result, we invest in a range of
the business operates a converting
technologies for the detection
and distribution facility in China,
of different solvents, monitoring of
serving its customers on a global scale.
humidity control, dissipation of static
Having been with the company since
throughout the production line, and the
March 2016, Adams is proud of the
safeguarding of equipment to make
considerable growth achieved in the
sure that we have a safe environment.”
past three years. “When I joined, it was clear to me there was the potential for
OPERATING IN THE MANUFACTURING SECTOR
large expansion of the business,
Transcontinental Advanced Coatings
market segments we serve,” says
operates ISO-certified manufacturing
Adams. “Approximately half of our
facilities at its headquarters in
business globally is tied to the medical
Matthews, North Carolina, and it’s UK
segment, inclusive of advanced wound
plant in Wrexham, North Wales. Also,
care products. With favorable global
primarily due to the nature of the key
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T C T R A N S C O N T I N E N TA L
240 growth trends in healthcare, inclusive
ion batteries on an explosive growth
of a growing aging population and
trajectory, we’ve started to think about
increased access to medical care,
things such as consumer electronics,
that segment represents an expanding
cell phones, and the automobile space.
market worldwide — it’s a great area
I think it’s important to consider the
to be a market leader in.”
key drivers of segment growth and the
To set TC Transcontinental apart
underlying fundamentals of the
from rivals, Adams understands the
business. What do people want? For
requirements of his customers to
example, they want a phone to charge
ensure the business can continue to
faster and for the charge to last longer.
transform in an ever-changing market.
We work with customers to create
“We’re able to work intimately with our
energy storage solutions for such
customers to develop and commer-
products. We can apply very thin
cialize differentiated solutions, rather
coatings to substrates that become
than just being a commodity product
the building blocks for power transmis-
supplier,” says Adams. “With lithium-
sion and storage devices.”
M AY 2 0 1 9
E XE CU T I VE PRO FI LE
John Adams, Senior Vice President & Managing Director John Adams joined Coveris Americas in 2016 as the Vice-President of Sales and Marketing for the global Advanced Coatings business and was promoted to the Vice-President and Managing Director role for the organization later that year. Following the acquisition of Coveris Americas by TC Transcontinental in 2018, John was named Senior Vice-President and Managing Director of the Advanced Coatings business segment.Before joining TC Transcontinental, John spent over five years with Danaher Corporation as a Vice-President of Sales and Marketing for a global industrial controls business group comprised of 6 business units covering the Americas, Europe, and Asia. Also, he spent over 15 years at Teradyne, Inc., holding roles of increasing responsibility in engineering, marketing, and general management. He holds a B.S. in Mechanical Engineering from Worcester Polytechnic Institute, and an M.S. in Manufacturing Engineering and an MBA from Boston University.
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T C T R A N S C O N T I N E N TA L
ESTABLISHING KEY PARTNERSHIPS In May 2018, TC Transcontinental completed the acquisition of Coveris Americas, inclusive of the Advanced Coatings business segment. Recognized as one of the top 10 converters of flexible packaging and other value-added products in North America, Coveris Americas manufactured a range of flexible plastic and paper products such as bags and pouches, shrink films, coextruded films and coated substrates and labels. “TC Transcontinental had been 242
focused on diversifying its printing and media assets to ensure its long-term growth and initiated its strategic shift in 2014 with a first acquisition in the flexible packaging industry,” explains Adams. “That leveraged manufacturing as their core competency and they invested in approximately six smaller acquisitions, generating about CAD $300mn in annual revenues. When Coveris Americas became available; it was a great opportunity for TC Transcontinental to continue the transformation of the company. Now, packaging is the largest sector of TC Transcontinental, and it’s become the engine of the company’s strategic M AY 2 0 1 9
243
$2.6bn Approximate revenue (CAD)
1976
Year founded
9,000
Approximate number of employees
e uro pe .busi ne ssc hief. com
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“ When we think about how we use technology, we think about what the strategic priorities of the business are” — John Adams, Senior Vice President & Managing Director Transcontinental Advanced Coatings
to aid with solvent vapor monitoring. “EW Process has been able to monitor the full range of solvent products that we use to ensure we don’t have any issues,” says Adams. “In our operations, safety is always our number one priority. Control Instruments is the one supplier we can depend on to provide comprehensive LEL sensing solutions that ensure the full range of solvent vapors resulting from production are precisely monitored through the equipment. This capability is paramount to ensuring we have no risk of combustion prior to exhaust entering our
shift. The Coveris Americas acquisi-
thermal oxidizer for final destruction.”
tion has allowed the company to become a leader in the North Ameri-
REMAINING SUSTAINABLE
can flexible packaging market, and
With sustainability crucial to the long
provides a strong, stable environment
term growth of all businesses, TC
for us to continue our growth.”
Transcontinental has several targets in
Transcontinental Advanced
mind in a bid to continue to thrive in the
Coatings business is in a rapid growth
manufacturing industry. “It’s about
phase, and as a result is focused on
having a strategy rooted in strategic
optimizing the performance of existing
markets, and ensuring that the
operations, and making the strategic
segments we’re in have fundamentally
investments necessary to enable
sustainable long-term growth trends.
growth. As an example, with safety as
As an ISO certified company, we
a top priority, TC Transcontinental has
ensure we have a high degree of
established a critical partnership with
process control, and explicitly
EW Process and Control Instruments
prioritize where we will grow and e uro pe .busi ne ssc hief. com
245
T C T R A N S C O N T I N E N TA L
invest, and where we will not.” To achieve a sustainable future, TC Transcontinental values the importance of building and developing a capable team to deliver a market-leading level of customer intimacy and responsiveness, staying ahead of rivals technologically, and achieving mutual and collaborative success with our customers. “It’s important that we recruit strong people and put a lot of energy into building, investing and helping our associates to stay ahead of the curve, in terms of training and capabilities,” explains 246
Adams. “We’re constantly bringing in new hires from universities to provide us with new ways of thinking. Thanks to this talent, combined with the best new technologies, we are innovating and developing next-generation environmentally sustainable solutions. TC Transcontinental’s unwavering commitment towards sustainability means that we are always looking at limiting our environment footprint and reducing waste.” New technologies are critical to staying ahead of the curve in terms of quality and delivery performance. “Two key capital investment strategies involve the implementation of in-line M AY 2 0 1 9
vision systems, ensuring 100% visual inspection of our products throughout the production process, and deployment of IoT 4.0 technologies, providing us with advanced notice of impending capital maintenance needs to minimize unplanned downtime and optimize maintenance spending,” notes Adams. Looking to the future, Adams believes there is significant room for Transcontinental Advanced Coatings to grow over the next few years. “We see the opportunities for substantial organic growth, and we intend to add additional capacity to our coating facilities in the near and mid-term as we optimize utilization of our existing capacity,” summarizes Adams. “Many of the partnerships that we have are long-lasting, and we continue to build off that as well as part of our growth strategy to help support our partners in the next generation of developments.”
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