DUBAI SCIENCE PARK
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KAUST
Tallest buildings in the Middle East
World-class education driven by a supply chain and procurement transformation
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FOREWORD WELCOME TO THE May edition of Business Chief. Over cover story sees us sitting down with Christopher Harvey, (Head of Procurement) and Sayed Magthum (Supply Chain Director) at Saudi Arabia’s King Abdullah University of Science and Technology (KAUST). The pair outline a supply chain and procurement transformation programme spanning almost a decade which has positioned King Abdullah University of Science and Technology as a leading light in the GCC’s higher education sector. Elsewhere, we talk to Marwan Abdulaziz Janahi, Executive Director, Dubai Science Park who details the mutual benefits to the multinational companies basing themselves in the multi-million-pound development centre. This month’s global technology transformation section looks at electric vehicles – is the correct infrastructure in place to provide for the masses of energy they will consume at any given time? Skeleton Technologies CEO Taavi Madiberk discusses what needs to be done to prepare for a new era of transport. We also garner essential insights from business leaders at Atlantis, The Palm, Fetchr and United Arab Bank. Our city in focus explores Doha and its thriving economy, plus we rank the top 10 commercial buildings in the Middle East.
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F E AT U R E S
L E A D E R S H I P & S T R AT E G Y
A SUSTA IN A BL E F U T U RE FOR
DUBAI
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KAUST
SUPPLY CHAIN
TECHNOLOGY
Wider electric vehicle adoption requires global energy solutions
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PEOPLE
52 IS THE
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S U S TA I N A B I L I T Y
tay true to what you are
64 CITY FOCUS
DOHA
76 TOP 10
TALLEST BUILDINGS IN THE MIDDLE EAST
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C O M PA N Y P R O F I L ES
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SUPPLY CHAIN
QATAR AIRWAYS TECHNOLOGY
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TECHNOLOGY
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TECHNOLOGY
SEWA ENERGY
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ENABLING LEADING
EDUCATION THROUGH
WORLD-CLASS PROCUREMENT
Written by JAMES HENDERSON Produced by HEYKEL OUNI 9
KAUST
How an environment of continual improvement in the university’s supply chain has supported the positioning of King Abdullah University of Science and Technology as a leading light in the GCC’s higher education sector
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audi Arabia boasts a number of leading universities, and, while not one of the oldest, having been established in 2009, King Abdullah University of Science and Technology (KAUST) ranks among them. The university is quickly and consistently gaining a reputation for excellence—in 2013, KAUST was recognised for delivering some of the fastest-growing high impact research, expressed through the number of prestigious citation in recognised publication. Also, in 2016, Nature ranked KAUST 19th in the world as one of the fastest-rising universities for high-quality research output in the Nature 2016 Index Rising Stars. In addition, KAUST was ranked as the world’s top university in citations per faculty ranking indicator as per
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the QS World University Rankings for 2015-2016 and 2016-2017. At inception, the university’s procurement team numbered just 15, all of whom worked in contracting roles, with the supply of research materials outsourced. It was soon recognised that the supply chain was integral to the achievement of the university’s research objectives and indeed the success of the university and that it can be affected by many unforeseeable variables, the decision was made to in-house this function. Purchasing, logistics, permitting, customs clearance and warehousing were then established, progressively increasing the number of professionals to around 160. From the early years, it was recognised that the procurement
S U P P LY C H A I N
KAUST Breakwater Beacon
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function and its role needed to develop in tandem with the university, which was steadily increasing its applied and pure research activity. This led to the strategy of having a continual improvement process that has spanned over the past nine years. This process has focused on improving the speed of the supply chain and improving the positioning of research materials along the nodes of the supply chain. The program of improvements was overseen by Christopher Harvey, Head of Procurement; Sayed Magthum, Head of Supply Chain Services; and Ismail Alfarooque, Manager of Customs and Compliance. Speaking from the KAUST campus located on the Red Sea at Thuwal, which is just north of Jeddah, Harvey reflects on the improvements that
have shaped the last nine years, commenting: “There has been a concerted and continual effort to improve and develop. For example, in 2011, the lead time for us to get research materials from our key vendors warehouses to our professors was around one and a half months, which we’ve managed over time to bring down to less than three weeks. That compares with other locations in the region, where the lead time for these materials is two to three months or more, so cutting that time enables our professors to carry on with their research initiatives.�
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KAUST
“THERE HAS BEEN A CONCERTED AND CONTINUAL EFFORT TO IMPROVE AND DEVELOP. FOR EXAMPLE, IN 2011, THE LEAD TIME FOR US TO GET RESEARCH MATERIALS FROM OUR KEY VENDORS WAREHOUSES TO OUR PROFESSORS WAS AROUND ONE AND A HALF MONTHS, WHICH WE’VE MANAGED OVER TIME TO BRING DOWN TO LESS THAN THREE WEEKS” CHRISTOPHER HARVEY, Head of Procurement
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Along with improving the speed and sustainability of the supply chain, KAUST has focused on bringing research materials closer to the bench. By implementing an online chemical tracking system by Jaggaer, the university and its professors monitor the stocks of research materials held in the laboratories, allowing researchers to share acquired resources and avoiding the need to buy. In addition to these stocks, the university has implemented a freezer program holding consignment life science reagents from the main manufacturers. This, along with a chemical warehouse holding over 4,000 SKUs, enables the most common materials to be readily available. Another popular initiative has been the chemical and consumable reuse program. Part-used or unused chemicals and consumables are returned to the warehouse where they are offered up free-of-charge to other users. This process maximises use and reduces hazardous waste. Lab equipment is also reassigned across the university to maximise
5 years. 1,000 Suppliers. 90,000 paperless invoices. 1 outstanding university. When King Abdullah University of Science and Technology (KAUST) wanted to remove the friction from their AP processes, they
Christopher Harvey Head of Procurement KAUST
chose Tungsten Network for its compliant e-invoicing capabilities. Over the past five years, we’ve served as KAUST’s trusted e-invoicing partner, and today we believe the results speak for themselves.
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to us during this transformation. Their ongoing commitment to us is demonstrated perfectly through our recent project to develop a VAT compliant invoice solution.”
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S U P P LY C H A I N
its usage. Standardisation of such equipment has become the norm, meaning the maintenance department can be more proactive rather than reactive. Furthermore, KAUST has contracted with partners such as Thermo Fisher Scientific, Merck and VWR, part of Avantor – organisations that are willing to adapt their business models to the needs of the university. Successful examples include the reduction in the time preparing shipments for export and increasing their in-stock first time SLA.
Working with companies such as SAP, Jaggaer and Tungsten has enabled KAUST to implement tools such as e-catalogues, an online procurement portal and e-invoicing. These tools have enabled more than 40% of the transactions to be automated from order to invoice, allowing time to be freed up for more complex, strategic actions. Furthermore, working with Kintetsu World Express, Biocair and DHL has ensured that logistics are aligned to KAUST’s customs and compliance needs and that goods arrive in a viable
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KAUST
KAUST customs and compliance team
quality. The Permitting and Customs Clearance team require a high service level from our logistics providers to ensure that they can adapt to the needs of the Saudi Arabian Ministries and Saudi Customs, enabling KAUST to clear the materials in a fast and efficient manner. At the outset, the university inherited its supply chain and procurement model from that used by Saudi Aramco, which Harvey says is “great for an energy company, but not really suited to a fast-evolving university”. In 2016, KAUST teamed up with a consultancy firm, Efficio Consulting, to review its processes to align them to the needs of its customers. As a result, it came up with a simple vision – to create a procurement function that added
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value, featured less bureaucracy, and was more customer-focused, while still remaining transparent. “We combined the contracting and purchasing teams to form Procurement Services and created a service that was more aligned to our customer’s needs, through the use of category planning, SRM and other techniques. It was something that hadn’t been done before, which enabled us to introduce a strategic planned approach to procurement,” comments Harvey. “We then looked at our governance by considering risk and value, which enabled us to approach our more transactional
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KAUST
procurement with a light touch, while keeping stronger governance for our high-risk and high-value actions.” Today the function is split between Procurement Services, which is comprised of 50 staff members, and Supply Chain, which has 75 staff members. Together they facilitate the smooth running of day-to-day operations. “We are handling a medical centre, an advanced ICT infrastructure, thousands of houses and so on. It’s like running the procurement function
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of a university with a town council bolted on, and to do that effectively, we’ve had to develop our staff,” says Magthum. “Procurement is perhaps not as advanced here as it is elsewhere, so development is really important. We have implemented a development programme, that to date we believe is best-in-class.” Currently, 14 have graduated with MCIPS, which bolsters the number of qualified professionals to 60%, with a new cohort kicking off the journey in 2018. The Supply Chain and Procurement
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teams have also been strengthened by a healthy complement of Saudi talent. Noting the importance of developing local expertise in line with the Saudi leadership’s Vision 2030, Magthum says: “What we’ve never tried to do is rely on expat labour. Since our inception, we have tried to bring in young Saudi graduates and develop them with us.” “Part of the transformation was to focus on the staff development and creating opportunities,” says Harvey. “We’ve restructured the
“WHAT WE’VE NEVER TRIED TO DO IS RELY ON EXPAT LABOUR. SINCE OUR INCEPTION, WE HAVE TRIED TO BRING IN YOUNG SAUDI GRADUATES AND DEVELOP THEM WITH US” SAYED MAGTHUM, Head of Supply Chain Services
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KAUST
THE POWER OF PROCUREMENT PARTNERSHIPS KAUST has built some hugely important partnerships in the last decade, all of which have played a part in developing a best-inclass procurement and supply chain function. Here, Christopher Harvey and Sayed Magthum comment on a few of its key relationships KINTETSU WORLD EXPRESS “We have a very good working relationship with KWE who are our main freight forwarder. They collect all of our materials for us and we get excellent data from them, so we are well prepared to clear goods from customs.” TUNGSTEN NETWORKS “When we first established, all of our invoices were delivered by hand, but now they are pushed through Tungsten, so all of our invoices come through on XML. Paper invoices are a thing of the past. “Tungsten were new to Saudi so we had to together closely to understand the legality of e-invoices, and they worked well with us recently on the VAT implementation to ensure all of our invoices were compliant.” SAP SAUDI “The ERP system that we use is SAP, and they helped establish the systems when
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the University was initiated. So, our orders are placed through SRM, our warehouse stock is managed by MM, and we use FI for our payment processes. The whole system is SAP.” THERMO FISHER SCIENTIFIC “We’ve developed a strategic partnership with Thermo Fisher Scientific where one of their staff sits in our maintenance department. We get access to their manuals and a lot faster access to their spare parts, which is really important. We are now trying to establish a cXML connection with them so they can process our purchase orders even faster. Also, recently the Thermo Fisher Scientific Electron Microscopy Centre of Excellence opened at KAUST” VWR, PART OF AVANTOR “Over the years we have established a close relationship with VWR, enabling them to pick, pack and ship our materials using the correct shipping options available to us. This has enabled us to establish a third-party program for ordering materials from suppliers with less experience in trading with KAUST”
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team to make it easier for people to develop through the ranks. We had a lot of entry positions and a few high grades, but now we’ve squeezed the pyramid so candidates are not competing against – say – 15 others. They’re up against four or five, which makes development more achievable. We want our staff to feel like they can rise through the ranks with us.” With the team now in a stable function, members have been reaching out to other organisations to enable the sharing of best practices. This has led to KAUST working other Saudi institutions and organisations, such as Saudi Aramco, King Abdullah Medical City and King Fahd University of Petroleum and Minerals (KFUPM). “We see the next stage of our development is to encourage our suppliers to trade similarly with other Saudi companies, as we are often the sole client they have here,” says Harvey. Having developed the procurement and supply chain functions to such an extent, Magthum says that the key role for the teams is now to
make the university competitive in what is a tough economy. “The goal currently is to save the institution money. We know that with the world and local economies as they are, we have to be as efficient as possible. We have to invest time with our key suppliers and build them as partners so that the relationship is strong and the service is right. “Regarding the future, this will almost certainly involve incorporating global best practices and up-todate technologies,” he adds.
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“We are spending a lot of time looking at spending analytics, so we are developing a better understanding of where we are spending our money,” Magthum continues. “It means we can better predict our outgoings and identify where we can improve our savings. While full use of AI is a ways off, we are working on areas such as a multi-platform tracking system so that our researchers know what materials are coming in, where they are in transit, etc. That is a big piece of work that includes integrating our suppliers, freight forwarders, couriers, permitting team and customs clearance. What it will mean is that we’ll be able to more accurately identify where goods are, manage our customers’ expectations and enable our people to more accurately schedule their research.”
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A SUSTAINABLE FUTURE FOR
DUBAI
L E A D E R S H I P & S T R AT E G Y
Business Chief caught up with Marwan Abdulaziz Janahi, Executive Director at Dubai Science Park, to talk about the important role of DSP in the region’s overall development Writ ten by OLIVIA MINNOCK
WHAT IS THE MOST EXCITING PART OF YOUR ROLE AT DUBAI SCIENCE PARK? Over the past decade I have witnessed significant changes, growth and achievements particularly in companies coming from abroad. Our community has grown from an idea into a vibrant ecosystem and we are now reaching a point where we can impact policy work and offer industry a voice to grow the sector. What really drives me is our collective achievement as a country and as a city. Motivated by the rapid pace of development and focus on innovation, I am passionate about supporting our leadership’s vision. Through my role as Executive Director, I have the opportunity to positively impact the local science sector, a strategically important sector that makes a substantial contribution to the UAE’s economic diversification efforts.
WHAT ARE THE MAIN CHALLENGES FACED BY DUBAI SCIENCE PARK? Despite volatilities in the global investment landscape, Dubai has fared very well in terms of attracting new business. It is an ideal destination for investors that offers a wealth of 30
May 2018
business and infrastructure benefits. In fact, the World Bank’s Doing Business 2018 report ranked the UAE 21st out of 190 countries for ease of doing business, up five places since 2017. Meanwhile, cumulative foreign direct investment (FDI) in the UAE increased from around $109bn by end-2015 to $117.9bn by end-2016. This 8.2% growth rate was driven by higher investments in manufacturing and other heavy industries.
L E A D E R S H I P & S T R AT E G Y A BOU T DUB A I SCIENCE PA R K Dubai Science Park (DSP) is home to 350 companies, including startups, SMEs and MNCs active in the life-sciences, energy and environment sectors. The park employs over 3,600 professionals in Dubai, working closely with the Government of Dubai to enable the local science sector. The DSP was founded in 2005 by TECOM Group, a strategic business enabler that contributed to the realisation of Dubai’s economic aspirations. DSP’s goal is to support scientific research, creativity and innovation. DSP is a hub for companies in the fields of human science, plant science, material science, environmental science and energy science. It is a growing community of businesses, professionals, entrepreneurs and talent, making it a hub for companies to set up, grow and flourish. For example, a large number of US partners have chosen to set up at DSP including Pfizer, PepsiCo., First Solar, Boston Scientific and Thermo Fisher Scientific.
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L E A D E R S H I P & S T R AT E G Y However, on the ground, key concerns at the moment are intellectual property protection and talent availability. This is particularly important to companies operating in the field of life sciences, where the protection of unique properties and compositions is vital to business success. As Chairing Member of the Pharmaceuticals and Medical Equipment Taskforce of the Dubai Industrial Strategy 2030, I make sure these concerns are heard and we succeed in creating an enabling environment that protects the ideas and innovations of our business partners.
A BOU T M A RWA N A BDUL A ZIZ JA N A HI Janahi is the Executive Director of Dubai Science Park. He has always been passionate about science and innovation, but started his career as a Business Analyst before joining Dubai Science Park and DuBiotech, when he became fully engaged and immersed in the world of science. As Executive Director, he is responsible for establishing DSP as the region’s leading science-focused community, attracting new companies and strengthening partnerships. 32
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HOW CAN BUSINESSES GET INVOLVED WITH DSP, AND WHAT’S IN IT FOR THEM? Apart from the usual business benefits of tax exemption and 100% foreign ownership, Dubai Science Park offers state-of-the-art infrastructure, which includes private labs, warehouses and office space specifically built around the needs of our partners. From a macro perspective, Dubai offers a favourable policy framework, impeccable infrastructure, access to funding, proximity to neighbouring and emerging markets, as well as a high quality of life. Whilst we welcome all businesses
of all sizes that operate within the life-science, energy and environment sectors, we are currently focused on attracting manufacturers in the pharmaceutical and medical equipment sector. Setting up a business at DSP is a straight forward, hassle-free process, most of which can be done online.
HOW DOES DSP WORK TO STRENGTHEN REL ATIONSHIPS BETWEEN CORPOR ATIONS, UNIVERSITIES AND COMMUNITIES? Dubai Science Park is uniquely mandated to bring together sciencefocused stakeholders from the government, business and academia on one platform. We host annual calendar events where we try to reach out to the community and facilitate dialogue on the most pressing issues within the life-sciences, energy and science sectors. Our events include the annual Arab Health Gala Dinner for the healthcare industry, the annual Green Leadership Series for the energy and environment sector, our annual Career Fair that matches talented graduates with our business partners, as well as our annual Family Day, where we try and
spark an interest in children aged four to 12 on exploring the exciting world of science. We hold regular workshops and are in constant conversation with our academic partners. Some of the representatives we met recently include the University of Sharjah, American University in Dubai, Heriot-Watt University Dubai, Manipal University Dubai, BITS Pilani Dubai, and The University of Manchester Middle East Centre. Our parent company, TECOM Group, also offers an 18-month graduate programme to recent graduates that are interested in 33
“MOTIVATED BY THE R APID PACE OF DEVELOPMENT AND FOCUS ON INNOVATION, I AM PASSIONATE ABOUT SUPPORTING OUR LEADERSHIP’S VISION” Marwan Abdulaziz Janahi, Executive Director at Dubai Science Park
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L E A D E R S H I P & S T R AT E G Y pursuing a career in one of the TECOM business communities. The graduates undergo a rotation programme and work in various departments, including strategy, finance, business development and marketing, as well as market research and product development. Following the completion of the programme, they are usually employed full-time or go on to pursue additional studies.
WHAT ARE THE CHALLENGES INVOLVED IN MAINTAINING THESE REL ATIONSHIPS? Currently we see a gap in available talent and the requirements of our industry. As part of the Dubai Industrial Strategy 2030, we seek to bridge this gap and ensure that we have home-grown talent. Quite recently, we entered a collaboration with Dubai International Academic City and held a high-level skills development workshop with key representatives from leading UAE educational institutions to emphasise the importance of STEM programmes. This is particularly relevant to our sectors. We will continue this dialogue, which we see as vital to the growth of our sector.
WHAT BENEFITS DO THESE REL ATIONSHIPS BRING? We definitely see eye-to-eye. Both business and academia agree on the importance of developing the skills needed to drive the local science, energy and environment sectors. Most leading institutions already offer a high number of STEM programmes. However, we need to be realistic as this is a long-term investment. Although we have established good working relationships signing memorandums of understanding with universities such as the Mohammed Bin Rashid University of Medicine and Health Sciences, we need to make a continued effort to bridge the gap. 35
CAN YOU TELL US ABOUT THE INDIRECT ECONOMIC IMPACT OF DUBAI SCIENCE PARK? As a holistic community, we do have a significant impact on the economy. Along with our partners, we collectively employ over 3,600 industry professionals that support their families. We also bring innovative products and solutions to the market. Through our work with the Dubai Industrial Strategy 2030, we are expecting to attract $2.5bn in investments to the pharmaceutical sector alone and looking to significantly contribute to the 27,000 new jobs that the Dubai Industrial Strategy 2030 seeks to add to the local job market. 36
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“OUR FOCUS IS ON CONNECTING WESTERN ECONOMIES WITH EMERGING MARKETS, AND AT THE SAME TIME IN POSITIONING DUBAI SCIENCE PARK AS AN IMPORTANT HUB FOR R &D AND MANUFACTURING IN THE LIFE-SCIENCES, ENERGY AND ENVIRONMENT SECTORS” Marwan Abdulaziz Janahi, Executive Director at Dubai Science Park
L E A D E R S H I P & S T R AT E G Y
DUBAI IS KNOWN AS THE ‘GATEWAY BETWEEN EAST AND WEST’ – HOW DOES DSP REFLECT THIS? We are indeed situated in a very attractive geographical location offering infrastructure that is second to none, whilst we are only a few hours away from large, emerging
African and Asian economies. Our focus is on connecting Western economies with those emerging markets, and at the same time in positioning Dubai Science Park as an important hub for R&D and manufacturing in the life-sciences, energy and environment sectors. 37
CAN YOU GIVE SOME EX AMPLES AS TO HOW DSP CONTRIBUTES TO THE UAE’S VISION 2021? Promoting the spirit of entrepreneurship Dubai Science Park is home to a number of innovative startups, but also works very closely with in5, a Dubai-based incubator that was launched by TECOM and is now home to more than 120 startups from diverse backgrounds and industries. More recently, DSP invited a couple of startups to one of its frequently held business partner
breakfast events to speak about the challenges and opportunities in setting up one’s own business – guest speakers included the founders of HeyDoc!, a telehealth platform and e3App, an energy saving app. Economic resilience and stability Mature and stable communities are the lifelines of Dubai’s economy. Over the past 13 years we have established ourselves as one and continue to move towards achieving our vision of emerging as a hub for R&D, innovation and manufacturing.
“AT DSP, OUR KEY VALUE IS TO TAKE THE LEAD IN SHAPING A GREENER ECONOMY” Marwan Abdulaziz Janahi, Executive Director at Dubai Science Park
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Allowing people to contribute to society We run a number of CSR campaigns where our residents and community members can positively contribute to the betterment of the wider society. This includes the recent Selma campaign, which collected donations for Syrian refugees, and the e-Waste campaign in collaboration with Uber and Averda, which collected and disposed of two tonnes of electronic waste in a responsible manner. Leading the green revolution At DSP, our key value is to take the lead in shaping a greener economy. Towards this priority, we have pioneered several activations to help
preserve our environment. Building on the success of our past efforts, we are gearing up to launch an environmental campaign across Dubai in conjunction with the transportation company Uber and Averda, a waste management company. Every year, Dubai Science Park also conducts a partnership event in collaboration with the Dubai Green Economy as part of our commitment to playing a leading role in the clean energy revolution. In addition, Dubai Science Park is a sponsor and contributor to the annual State of the Green Economy Report, as well as to The Sustainabilist, a new magazine that is published by the Dubai Carbon Centre of Excellence. 39
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TECHNOLOGY
Wider electric vehicle adoption requires global energy solutions WITH COUNTRIES THE WORLD OVER INCREASINGLY TURNING TO ELECTRIC VEHICLES, TAAVI MADIBERK, CEO AND CO-FOUNDER OF SKELETON TECHNOLOGIES, INVESTIGATES HOW WE CAN ENSURE THIS ADOPTION IS SUSTAINABLE Written by TAAVI MADIBERK
TECHNOLOGY
T
HE AUTOMOTIVE SECTOR is evolving at an unprecedented rate. According to the International Energy Agency (IEA), an estimated 50mn electric vehicles will be in operation by 2025, and 300mn by 2040. With BMW, Volvo, and Jaguar Land Rover promising electrified versions of their current models, most of the major car manufacturers have now announced significant investment, re-affirming this shift. Furthermore, with Dyson announcing that it is starting to manufacture electric cars and the European Commission forming a consortium that will drive the development of battery technology, there is no doubt that we are moving towards a world with electric vehicles at its centre. While we are certainly on the road to wider adoption, there is still one main drawback that could thwart public interest: charging infrastructure. Fundamentally, in order to support the innovation and commercialisation of electric
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vehicles, the right energy technology and infrastructure must be in place. This is critical to ensure the experience matches the hype.
THE RISE OF THE ELECTRIC HYPE Fuelled by the rise in air pollution and political momentum to reduce global warming, electric vehicles have grown in popularity and the technology has improved at a record pace to become a benchmark for innovation in the automotive sector. Competition in the marketplace is also increasing. From the first Prius hybrid model launched by Toyota in 1997, to the more recent full electric
‘THE CASE FOR MORE ENERGY EFFICIENT VEHICLES IS GAINING MOMENTUM’
The Range Rover Sport plug-in hybrid electric SUV signals an electified future
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TECHNOLOGY vehicle launches of the Tesla Model S, BMW i3 and Nissan Leaf, car manufacturers are investing in hybrid and electric vehicles and demand from consumers is gradually growing. Couple this with increasing environmental and sustainability regulations and the case for more energy efficient vehicles is gaining momentum. The adoption of this technology, however, is hampered by a need to optimise infrastructure to ensure it can support the surge in charging capabilities. Crucially, if the infrastructure cannot cope with peak power points, the adoption of electrical vehicles will reach a standstill.
GLOBAL ADOPTION REQUIRES A UNIVERSAL SOLUTION We already see Britain, France, Norway and China committing to ban diesel and petrol cars in favour of cleaner vehicles. This shift was most recently followed by one of the leaders in the automotive industry: Germany. At this point, it is becoming critical to adopt technology that allows us to smooth over the energy consumption needs that advanced countries are yet to experience. We need to take 46
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Click to watch Skeleton Technologies – Global Tech Leader in Ultracapacitor Energy Storage
‘IF THE INFRASTRUCTURE CANNOT COPE WITH PEAK POWER POINTS, THE ADOPTION OF ELECTRICAL VEHICLES WILL REACH A STANDSTILL’
a holistic view to managing energy provision, as we will not be able to rely on drivers of electric vehicles to scatter the time when they charge their vehicles to reduce peak demand. With implementation commitment growing at a rapid pace, there is a pressing need for collaboration that will support solutions for energy technology challenges globally. This can only be done if governments, industry bodies and innovators join forces to support energy storage technologies that complement future developments in the sector. There is a need for a serious discussion on how to implement a stable grid that will be capable of withstanding the increased energy consumption inevitable with electric vehicles. Critical to this will be coping with especially high demand peaks and proving that the grid has the resilience needed for electric vehicles to become a success.
REVOLUTIONISING THE SECTOR It is possible to manage the growing demands on our energy infrastructure and ensure that there is a stable and reliable energy support that will drive the growth of electric vehicles, but 47
TECHNOLOGY it requires a fresh look at our energy storage mix. By investing in energy storage technologies that complement battery power, such as ultracapacitor technology, we can manage peak power needs. Ultracapacitors are one of the lowest cost solutions to helping with grid stability, and can play an integral role in supporting the national grid and managing power demands. Wide-scale electric vehicle charging creates serious issues with demand management, which can potentially cause power blackouts. These blackouts are caused mostly by short
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demand peaks, which usually last under a minute. This is precisely where ultracapacitors excel. As part of the grid solution, ultracapacitors can provide a means to ensure there are no blackouts during sudden changes in demand. On board vehicles, the technology should be evaluated and used in tandem with lithium-ion batteries in order to downsize the pack and increase the battery lifetime. By introducing capacitive technology to the power unit, it is possible to reach longer lifetimes and support the peak power needs of electric vehicles. However,
in order to do so, we must secure a reliable infrastructure to support this trend going forward. By prioritising investment in infrastructure and encouraging discussion and collaboration between governments, car manufacturers and technology companies, we will be able to create an environment where infrastructure, technology and the consumer act as one. Only then will be able to embrace electric vehicle revolution globally and support a future that is dominated by electrification.
‘WE NEED TO TAKE A HOLISTIC VIEW TO MANAGING ENERGY PROVISION’
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IS THE US SKILLS SHORTAGE PART OF A GLOBAL EPIDEMIC?
Jack Coker, Principal, Ducatus Partners, discusses how America can make its infrastructure “great again” as Business Chief finds out whether the current skills gap is a global phenomenon Written by JACK COKER Edited by OLIVIA MINNOCK
PEOPLE
“ Although it will take several generations to rebuild the infrastructure workforce to full capacity, companies can kickstart the process” – Jack Coker, Principal Consultant, Ducatus Partners
THE PEOPLE PROBLEM Modern infrastructure in the US was born from President Franklin D Roosevelt’s New Deal for the American people. Between 1935 and 1943, the Works Progress Administration (WPA) built over 500,000 miles of rural roads, 100,000 bridges and 1000 airfields. The WPA built sewers, tunnels and power lines. Hospitals, schools and fire stations sprang up across the nation. 54
May 2018
However, in recent years this spirit of investment has waned. In every report card since 1998, the American Society of Civil Engineers has awarded a ‘D’ to America’s infrastructure, reflecting chronic underinvestment in the sector. The society also estimates that, unaddressed, this could damage the economy to the tune of almost $4trn lost in GDP by 2025, slashing the disposable income of each household
across the United States by $3,400 each year. Fortunately, change is in the air and major infrastructure investment is back on the political agenda. The problem? There are not enough skilled people to meet demand. Whilst the WPA was created in part to soak up excess labour in the workforce, modern programs are hampered by the lack of it. All over the world, the skillsets required
in the labour market are having to adapt to technology transformation. As the US struggles to keep up with this demand, developments are more positive around the world with governments and educational organisations focussing on better preparing the workforce. Across the Middle East, Europe, Asia Pacific and parts of the Americas, employers are beginning to find it easier to find the right talent, but additionally it has been shown that particularly in Europe, contract, freelance and temporary work are all on the rise. This could point to a workforce adapting to fit their existing skillsets around changing demand. Globally, economic migration is on the up, with migrant workers increasingly of a more educated caliber. While migration can help to plug skills gaps across the world, as there is a bigger pool of talent to choose from for a country’s particularly profitable industries, in many cases restrictions on migration are set to increase, particularly in the UK and US. In addition, wage growth across the EME market has been slow and as such it can be easier to hire new employees than in other regions, like Asia and the US. 55
PEOPLE
“ There are essential A VICIOUS CYCLE individuals who Coming back to the US, underinmake the difference vestment in infrastructure has been a topic of discussion for decades. between on-time, However, the paucity of large on-budget projects infrastructure projects has led civil engineers and specialist managers and multimillionto depart from the industry. This is dollar overruns; and compounded by fewer people seeking a career in the space, and fewer students there aren’t enough enrolling in courses. A vicious cycle. of them” Several states have recognised the need for infrastructure investments. – Jack Coker, Principal Consultant, For example, Connecticut and Ducatus Partners Washington are in the early stages of multi-year transportation improvement initiatives. What’s more, some states overruns; and there aren’t enough have resorted to raising extra funds of them. to try and deal with the situation, A number of issues stem from the including raising gas taxes, a key workforce shortage. Lack of source of funding for road construction. experienced workers means companies In California, 20 of the state’s 58 must relocate employees across the counties already have transportation country on a project-by-project basis. sales taxes in place which has led to Relocation can be expensive, especially an exponential increase in infrastructure in states like California. projects. Unfortunately, even as the Another issue is that human resource money is starting to flow, the workforce and leadership teams focus almost has atrophied. In short, there are exclusively on project start-up to the essential individuals who make the detriment of ongoing roles throughout difference between on-time, on-budget the project lifecycle, resulting in projects and multimillion-dollar a backlog of hires which has a direct 56
May 2018
impact on the bottom line. Project and construction managers with five to 15 years of experience are in particular demand, and positions can remain open for months at a time; especially in the aviation, rail, transit and water sectors. This stretches workloads which in turn increases staff attrition. Another vicious cycle, further compounding the talent crisis. This is a particular problem for US infrastructure, but that’s not to say that other regions aren’t struggling to find staff with the specific skills needed as their economies shift and change.
TAKING ACTION Running into this problem with varying degrees, countries are taking different steps to upgrade the skillsets of their workforce in line with new requirements – but exactly where this responsibility lies is a contentious issue. Udemy recently commissioned a ‘skills gap’ report pertaining to the global work environment. This showed that the majority of workers around the world agree there is a growing skills gap, but largely feel “optimistic about their own skills and the competitiveness of their respective countries”. 57
PEOPLE On a worldwide scale, Udemy CEO Kevin Johnson stated: “the nature of jobs is quickly changing with automation, globalisation, government policies and other factors, making it impossible for anyone to predict which skills a job will require in the future. This only serves to widen the perceived skills gap.” In the US, 79% of full-time employees according to Udemy believe there is a skills shortage and 35% “feel personally affected by it”, but 80% of these believe that workforce reskilling will be successful. In terms of reskilling efforts, 41% think the government, through tax benefits or otherwise, should contribute. Udemy’s report analysed five global markets and found that in France, staff largely don’t feel the need to upskill, with 75% stating that they were confident with their current skill set – however in Brazil, 98% of those surveyed acknowledged the existence of a skills gap in their country. In terms of responsibility, 50% of Mexicans felt that it was up to the individual to upskill, with 17% placing responsibility on the government and 13% on employers. It was also found that some people have taken on a second 58
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job in order to utilise their skills in a more appropriate way, with 39% of Americans describing themselves as having a “side hustle” in comparison with just 18% in both Spain and Germany. In the US, there are doubtless deepseated issues that will not be solved overnight. However, with mega-projects in construction and infrastructure in the offing such as those tied to the 2028 Olympics, California’s high-speed rail and LAX’s $5mn upgrade program, there is no time to wait. With that in mind, the question is: how can companies
“ Human resource and leadership teams focus almost exclusively on project start-up to the detriment of ongoing roles throughout the project lifecycle, resulting in a backlog of hires which has a direct impact on the bottom line” – Jack Coker, Principal Consultant, Ducatus Partners
best manage and mitigate workforce issues to ensure projects are on schedule and on budget?
PROACTIVE TALENT MAPPING AND EDUCATION By partnering with a specialist executive search provider, companies can build a map of where talent is and where it needs to be. Talent mapping is about proactively building a virtual ‘bench’ of talent, anticipating need, and successfully mitigating unnecessary cost. Mapping allows companies to
proactively engage candidates which significantly reduces time to hire. Upon the award of a large infrastructure project, a high-potential candidate pool is identified, engaged, and ready to be mobilised. In locations that are difficult to recruit to, either due to high costs or low desirability, talent mapping is especially useful. Although it will take several generations to rebuild the infrastructure workforce to full capacity, companies can kickstart the process. By working in partnership with colleges, companies can start to mould the next generation by putting the right skills in place, imparting knowledge, and developing talent pipelines through internships. When the time comes for graduates to seek full-time positions, companies may benefit from having built respect and loyalty with interns. According to World Atlas, one of the countries suffering an even greater skill shortage than the US – indeed the ‘worst’ in the world – is Japan, and education is a leading cause. “Japanese companies are faced with potential employees lacking knowledge of the global markets,” the report argues, putting this down 59
PEOPLE to a “rigid” educational system which does not equip Japanese students for the modern world. In China, as it strives to overtake the US as an AI superpower, finding the correctly skilled individuals is paramount and has become a common issue for companies according to the Global Skills Index. Therefore, issues in transforming the economy aren’t
isolated to the US alone, but in China they are increasingly in the form of new technology skills and the ability to manage a tech-based enterprise, which often has to come from employees educated in the US or Europe. High costs of hiring mid-to-high management have resulted in MNCs being reluctant to set up core research centres in China, according to China Daily, which adds
“ In locations that are difficult to recruit to, either due to high costs or low desirability, talent mapping is especially useful” – Jack Coker, Principal Consultant, Ducatus Partners
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that China is making more efforts to work with universities, “especially top engineering institutions”. It is widely agreed in China that the likes of AI and Big Data should be exploited, but employers are now forced to look at the skills and talent pool on a global scale. The government has launched guidelines on focussing talent development in manufacturing, including integrating industry and education, promoting key adaptable abilities and qualities, and “establishing a high-level management skills pool”. While China leans more toward a planned economy than most, government involvement may be a direction for other economies to consider when dealing with the global skills gap. Although young talent is slowly entering the industry in the US, experienced talent is quickly flowing out. Senior talent is retiring and leaving an institutional knowledge gap. Companies have a responsibility to eliminate this from happening. Developing concrete succession plans to transfer knowledge and skills to the next generation minimises the risks to the retirement process. This applies across the organisation, from the
Jack Coker is a principal consultant at Ducatus Partners, an executive search and leadership consultancy focused in the global energy, infrastructure and process industries. He has significant search experience in both Europe and the Americas, serving a broad range of clients spanning architecture, engineering and construction across the energy, power and civil infrastructure sectors. Jack holds a Master of Science degree in Environmental and Earth Resources Management from Kingston University, London and a Bachelor’s degree, with honours, in Geography from the University of Portsmouth.
C-Suite, project leadership to the experienced niche engineers. Will the rediscovered appetite for infrastructure investment be enough for the US? Or is it a case of a day late and a dollar short? Only time will tell, but companies the world over can be sure of one thing: smart workforce planning and talent management is essential to successful project delivery. 61
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S U S TA I N A B I L I T Y
S
tay true to what you are
Marketing expert Allen Adamson tells us why businesses must be careful not to dilute their brand when introducing new products Written by STUART HODGE
S U S TA I N A B I L I T Y
W
E LIVE IN a changing marketplace. Although all of the traditional staples of customer service are still welcome, they are becoming less important to a new generation that had grown up with the ubiquity of online shopping platforms and a plethora of choices like never before. More and more highstreet retailers are suffering at the hands of the growth of at-home pointand-click shopping, and it seems that the power of a strong brand identity is greater than ever before. With this in mind, Business Chief spoke to branding expert Allen Adamson, author of various books esteemed at universities globally on the topic, including his latest title ‘Shift Ahead: The Best Companies Stay Relevant in a Fast Changing World’. He spoke to us about how the power of brands is changing in the modern world, and the challenges of diversifying in a changing landscape. “In my world a brand is what your story is,” he says. “One of the challenges that many marketers face is ‘what is their story? What do they stand for?’ Once you figure out your story, your 66
May 2018
brand, what has become increasingly difficult is ‘how do you get that story out there?’ Like many things, a theory in marketing and branding is pretty easy, but execution is really hard. What I mean by that is people only recommend extraordinarily good things or talk about extraordinarily bad things. They don’t recommend or talk about things that are just ‘okay’.” Consumer habits are no doubt changing too. In fact, a recent study by EFG Companies looking at digital
“ People only recommend extraordinarily good things or talk about extraordinarily bad things. They don’t recommend or talk about things that are just ‘okay’” – Allen Adamson, Co-Founder at Metaforce
purchasing in the car market revealed that half of customers will now check reviews online before even contacting a dealership. Not just that, but the study would also indicate that we are becoming more picky and impatient: 43% of the pool of almost 1,500 respondents said that they were more likely to visit a dealership if it had plenty of information on its website, and 83% expected a response from the dealership within 24 hours of sending an online vehicle inquiry, with 16% 67
S U S TA I N A B I L I T Y
“ If you don’t look good, most consumers are not going to read the product specs to find out what’s inside” – Allen Adamson, Co-Founder at Metaforce
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wanting information immediately or within the hour. However, the nature of the response people are expecting has changed, with only 9% wanting a phone call from the dealership after they’ve submitted an online request. Not just that, but Adamson believes the way we are interpreting the world around us now is changing the way that consumers are recommending products. He says it’s now more often about how they appear visually than whether they’ve been recommended by one person to another. “Younger consumers are spending more and more of their time sharing stories, sharing ideas, sharing pictures,” says Adamson, who is also the founder of marketing and branding consultancy Metaforce. “With that in mind, I think ‘word of eye’ is becoming more important than word of mouth. I think the quality or the visual appeal of things is growing in importance because people are visual to begin with, and now that they can share pictures as fast as they can share words and ideas, you have to look good no matter what you’re doing. 69
S U S TA I N A B I L I T Y
“A couple of years ago I went to the Consumer Electronics Shows in Vegas and no matter which manufacturer I looked at, from 20 companies from China and from India that I’ve never heard of to Apple, Sony and Samsung, everyone’s products looked spectacular. All of a sudden, even the cheapest products looked incredibly stylish. Now, if you don’t look good, most consumers are not going to read the product specs to find out what’s inside. They’ll make a snap decision and if you don’t look good, you can’t fix it.” Another trap that manufacturers have to avoid falling into is having too myopic a viewpoint. If you are Coca-Cola, don’t just look at Pepsi as your major competitor or you could fall off the pace. With so much choice out there now, every soft drink manufacturer is a competitor. Blackberry is a prime example of a company which has suffered from being too tunnel-visioned in its approach. The Canadian smartphone provider did help to drive the boom in smartphone pervasion, but staunchly believed that consumers would never 70
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“ You have to make sure that whatever product you go into, the benefit of your brand is still delivered” – A llen Adamson, Co-Founder at Metaforce
move away from using a keyboard. The entire management team was convinced that the iPhone and touchscreens were a toy that kids would be playing with, but that any serious person typing out messages for business would never give up their keyboard. This undiversified view was why Apple and other competitors were able to steal a march and ratchet up their market share.
It’s a danger for every company, but do these changes in consumer behaviour and the requirement for increased brand awareness mean it’s now harder to diversify your line of products within an overarching brand identity? Adamson doesn’t believe so, but he does feel companies need to be a little cleverer about how they do it, ensuring that the integrity of what their company
stands for is not compromised. “You have to make sure that whatever product you go into, the benefit of your brand is still delivered in that new category or that new segment and it reinforces what the core idea is,” he asserts. “I think BMW has been pretty successful switching from sports sedans to SUVs. Yes, their SUVs perform differently than their other models but when they talk about why their SUV is better than other SUVs, it’s still tied to that core idea of ‘the ultimate driving machine’. If you’re in an SUV, ‘the ultimate driving machine’ lets you go through a riverbed and up an incline without tipping the car over, and through mud and muck. If you’re driving a sports sedan, that means you can go around the corner on the highway at 60mph and not feel that you’re going 60mph around the corner. They have a clear definition of what BMW-ness is. “Now they’re experimenting with electric cars, the definition of what ultimate driving means has some latitude but no matter what it is, the worst thing you can do to a brand is to line-extend it or diversify into 71
S U S TA I N A B I L I T Y a product that’s unsuccessful and is rejected by the market. Because not only will you miss the opportunity to sell SUVs if you’re BMW, but you’ll do more damage to your core product line.” An example of a company losing vision of what made its brand truly special, as Adamson illustrates in his latest work, is Sony. “Sony used to stand for magical things when they first were around,” he says. “Their television sets, their screens had matchably better colour than anyone
else’s. When you put on their Walkman 20 years ago, the sound was phenomenal. Then they started to stick the Sony name on products that didn’t give you goosebumps like clock radios, shower radios… not quite toasters, but they put their name on everything and all of a sudden on phones that were not that good. “I think the key part of success today is being able to deliver your brand benefit in whatever form your customer wants it. The trick is not to go so far
“ If you can’t deliver a great experience at these new diversification points then you’re basically diluting your brand, you’re stretching it too thin” – Allen Adamson, Co-Founder at Metaforce
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where you’re just extending and, like the Sony story, you have nothing special. When we look at brand extension we look at both fits. Yes, the Sony brand can fit in shower radios but does this have any leverage? “If you can’t deliver a great experience at these new diversification points then you’re basically diluting your brand, you’re stretching it too thin. You are looking at short-term sales versus longterm success. More and more brands have stretched so far that they don’t
stand for anything because they become diluted. Famous theory is ‘the stronger the focus, the stronger the brand’. If a brand stands for everything and is in every category it’s going to lose its success. “All of sudden people looked at Sony and said ‘oh, it’s not that special. Their phones aren’t that good. The shower radio is not that great’. They lost their sizzle because they diversified well beyond their ability to deliver a core Sony experience.”
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The 10th GPCA Supply Chain Conference will take place in Dubai on 8 -10 May, 2018 under the theme ‘Collaboration for growth: A cultural transformation’. The conference will address topics of organizational health and culture, and focus on collaboration as a key driver of growth and a cornerstone of supply chain transformation. Recent studies suggest that more than 80% of organizations globally agree that increasing collaboration with internal and external stakeholders can drive bottom line results and reduce costs of supply chain functions. This important regional petrochemical industry event will cover a wide range of topics cutting across global trends, technology disruptions, collaboration, business optimization, procurement, organizational culture and fascinating case studies from around the region and globally.
DOH CITY FOCUS
Headline
Seque rest volorum aute velestio intem illibus es qui ut alit et, sita iuntur? Writ ten by AUTHOR
OHA WILL DOHA’S NEW VISA POLICIES, LUXURY DESTINATIONS AND GROWING HOTEL INDUSTRY MAKE IT THE NEW CROWN JEWEL OF MIDDLE EASTERN TOURISM? Writ ten by HARRY MENE AR
CITY FOCUS
THE DESERT KINGDOM of Qatar has a total population of 2.6mn inhabitants, 92% of which live in its capital city, Doha. Situated on the eastern coast of the Qatari peninsula, Doha has spent the past decade undergoing a dramatic transformation. The country’s vast oil wealth (Forbes reports the country’s GDP per capita as $59,300) has led to the construction of “outlandish high-rises, lavish hotels and extravagant malls” since 2004. A large portion of the country’s wealth is being poured back into state-funded projects, like the city’s hosting of the 2022 Fifa World Cup. Events like this are provoking considerable investment in Doha’s tourism industry, in both the public and private sector, as the city sets its sights on outstripping Dubai as the Middle East’s number one tourist destination. In late 2016, Qatar Airways and the Qatar Tourism Authority provided this initiative with a shot in the arm, unveiling free 96-hour transit visas for passengers of all nationalities travelling with the airline, according to a report by VisitQatar in 2017. The report states that “in 2017, over 41,000 passengers made stopover visits using this visa”. Additionally, in August last year, Qatar introduced a visa waiver program
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92% OF QATAR’S POPULATION LIVE IN DOHA
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CITY FOCUS for the citizens of over 80 countries, which allows those eligible to enter the country for either 30 or 90 days. The VisitQatar report states that, since the program’s inception, “nearly 275,000 visitors have entered Qatar visa-free,” particularly representing growth from countries that previously required visas for entry, such as India, Russia, South Africa, Ukraine, Lebanon and China. While the Qatari government’s attempts to bolster its tourism, numbers have been stymied by a GCC blockade of the country, which
started in 2016, numbers of African and European tourists arriving in Doha has risen by as much as 43% in the past year. With tourism numbers on the rise, despite political turmoil in the region, Doha has ensured that its public attractions are ready to compete with the Middle East’s most popular destinations. Located on the water, with commanding views of the soaring Doha skyline, the Museum of Islamic Art is fast becoming a well-known cultural hub. Designed by renowned architect IM Pei, winner of the
THE 2018 QATAR INTERNATIONAL FOOD FESTIVAL PLAYED HOST TO OVER 400,000 VISITORS
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1983 Pritzker Architecture Prize, the MIA is also host to restaurant IDAM, run by Alain Ducasse, who holds three Michelin stars. The city also plays host to the Qatar International Food Festival, hosted in an 80,000 sqm venue, with a total of 177 stalls which include 17 hotels, nine embassies and six food trucks over 11 days, according to The Peninsular Qatar. The 2018 festival played host to over 400,000 visitors. Cultural events like this, and the Doha Tribeca International Film Festival, are rapidly increasing the cultural draw of the region. Forbes Magazine reported: “No other city in the Middle East is so seamlessly
intertwining Western pizazz with its Arab-Islamic roots — and it’s only just getting started.” This strong cultural growth is being mirrored by a boom in luxury hotel investment across the city, which already plays host to developments by the St. Regis, Radisson and Hilton. In August this year, hotel conglomerate IHG will partner with local firm Tanmiyat Real Estate to rebrand the M Doha Hotel, which will become the 317-room Crowne Plaza Doha West Bay. This will be the second Crowne
The Museum of Islamic Art 81
CITY FOCUS
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Plaza location to open in the city. VisitQatar reported that, in 2017, the number of hotel rooms available in Doha grew by 10%. While demand only grew by 3.4%, the rapid expansion of available luxury locations obviously speaks to the expected surge in tourism figures post-blockade and during the World Cup. This means the current climate may be ideal for tourists, with average room rates dropping across the board, compared to 2016, in excess of 10%. This is likely a reflection of increased supply and competition. This supply-demand gap is expected to close, not only due to the upcoming world cup. 2017
represented a dramatic growth year in Qatar’s cruise tourism industry. According to VisitQatar, approximately 46,500 visitors disembarked in Doha, which represents a 265% increase over the previous year. The majority of these visitors were from European Markets, “the highest being nationals from Germany, UK, and Italy”. With cruise, short-stay, and cultural tourism on the increase, Doha is ready to see a return on its investments. The sustained growth in most areas (and minimised losses in others) of its tourism industry, in spite of the blockade, is indicative of significant expected growth when the political situation resolves itself. And, with the US government now emphasising its support for Doha, the Middle East’s rising star in the tourism industry may soon rise even higher.
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Now in its second edition, GPCA’s Responsible Care Conference will take place in Dubai on 6 - 8 May, 2018 under the theme ‘Responsible Care® – The Competitive Advantage’. The conference will showcase best regional learnings across the chemical and petrochemical sector and define the future direction of Responsible Care companies in the region. World-class industry leaders will share their accomplishments in the areas of Health, Safety, Security and the Environment (HSSE) not only inside the fence but across the entire value chain. The conference provides a unique opportunity to network and learn from renowned international and regional industry experts about leadership, HSSE operational advancements, regulatory collaboration, and the industry’s future direction.
www.gpcaresponsiblecare.com
www.gpcaresponsiblecare.com
TOP 10
TOP 10
TALLEST BinUthILe MDidIN G S dle East The Middle East is home to some of the tallest buildings in the world. Here is a look at the top 10 in the region, and what goes on inside them Writ ten by SHAUN BOWIE
10 Emirates Tower 1
The Emirates Towers are a twin-tower complex located in Dubai, with Tower 1 rising to 1,165 ft and Tower 2 at 1,014 ft. The two towers are connected by ‘The Boulevard’, a two-storey retail complex with 96,875 sq ft of floor space. Tower 1 acts as an office building and first opened in 1999. The Emirates Towers complex was constructed by the Al Ghurair Investment group and contains a larger complex that includes 42 acres of gardens, waterfalls, lakes and public recreation areas. There is also parking space for up to 1,800 cars.
www.jumeirah.com/en/hotels-resorts/dubai/jumeirah-emirates-towers/
9 JW Marriott Marquis Dubai
The JW Marriott Marquis Dubai Hotel is a 72-storey 1,165 ft tall skyscraper and the world’s second tallest hotel. The initial construction was proposed in 2005 with work starting in 2006 and finishing in 2012 and the design being handled by Archgroup Consultants. There are 1,608 rooms in the hotel, which is run by Marriott International, although the building is owned by Emirates Airline. In the future, the plot will adjoin an extension of the adjacent Dubai Creek including a waterside promenade.
www.jwmarriottmarquisdubailife.com/
1,165 ft
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TOP 10
8 Almas Tower
The Almas Tower (Diamond Tower in Arabic), located in Dubai, was developed by the Dubai Multi Commodities Centre (DMCC) in 2005 with construction finishing in 2009. The 68-storey building houses the corporate offices for DMCC as well as the Dubai Diamond Exchange with a wide range of services taking place here for the region’s diamond, pearl and coloured gemstone industry. As well as the Dubai Diamond Exchange this includes the Dubai Pearl Exchange, Dubai Gems Club and the Kimberley Process Certification offices. Due to the nature of the high value luxury business that takes place here, high security measures are installed across the structure.
1,180 ft
1,166 ft
IRITU
PICTURE: SAINAN
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7 Capital Market Authority Headquarters
The Capital Market Authority Headquarters in Riyadh, Saudi Arabia, is a 1,263 ft, supertall skyscraper with 76 floors above ground and four below. Construction on the building began in 2010 and the top height was reached in 2014, although minor building work will continue until 2019. The building was designed to be the centrepiece of Riyadh’s new financial district with special care and detail taken to reduce heat and utilise the sun’s energy, such as photovoltaic panels on the tower’s roof.
https://cma.org.sa/en/Pages/default.aspx
1,352 ft
PICTURE: ABALCAZAR
1,263 ft
6 Al Hamra Tower
The tallest building in Kuwait, Al Hamra Tower cost US$500mn and took six years to complete, with construction starting in 2005. Designed by architectural firm Skidmore, Owings & Merrill, the tower contains a commercial complex comprising a health club, luxury shopping mall and extensive commercial office space. The tallest sculpted tower in the world, Al Hamra has 80 storeys as well as three underground levels standing at 1,352 ft. The tower was named one of the best inventions of 2011 by TIME magazine.
www.alhamra.com.kw 90
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5 Princess Tower
Dubai’s the Princess Tower is the only residential building in the top 10 and has 763 luxury apartment suites, 101 floors and six subterranean levels. Estimated to have cost $210mn to build, construction began on the Princess Tower in 2006 with work coming to an end in 2012, at which time it was the tallest residential building in the world. The tower has an adjacent tramline that connects the structure to the rest of the city and is located near a large number of malls, entertainments venues and cultural attractions.
1,358 ft
1,417 ft
http://theprincesstowerdubai.com/
Marina 101 officially opened in 2016, but construction was actually fully completed in 2017. It was designed by the National Engineering Bureau and constructed by Turkish-based company TAV Construction. Located in Dubai, the first 33 of the tower’s 101 floors house a five-star Hard Rock Hotel with 281 rooms. Floors 34 to 100 contain luxury apartments, and the 101st floor is home to a club lounge, restaurant and merchandise shop.
PICTURE: CHANDRADHAS
4 Marina 101
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3 Milad Tower
Milad Tower, located in Tehran, Iran, is a multi-purpose structure that contains a five-star hotel, a large convention centre, IT park and world trade centre, with the building also acting as a radio tower. It measures 1,427 ft to the tip of the antenna and is the tallest building in Iran. The head of the tower is a large pod with 12 floors and a large flat roof.
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2 Abraj Al-Bait Clock Tower
Controversially built on the location of the historic Ottoman Fortress Ajyah, Abraj Al-Bait Clock Tower has the world’s largest clock face and is the tallest building in Saudi Arabia. It is also the most expensive building in the world, costing $15bn, more than 10 times the amount of the Burj Khalifa. Standing at 1,972 ft, the Abraj Al-Bait Clock Tower has 120 storeys and 96 elevators, and took over seven years to build, with construction finishing in 2011. The clock face can be seen from as far away as 16 miles.
http://thetowerinfo.com/ buildings-list/abraj-al-bait/
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1 Burj Khalifa
Currently the tallest building not only in the Middle East but the world, the Burj Khalifa is 2,722 ft tall and has 163 storeys, 57 elevators and a floorspace of over 3.2mn sq ft. It holds several different records, including highest occupied floor, highest nightclub, highest observation deck and, of course, highest skyscraper. Construction on the Burj Khalifa began in 2004 and was complete in 2011, costing $1.5bn and was designed by Skidmore, Owings & Merrill. At the base of the tower you can find the enormous Dubai Mall and a vast array of tourist attractions.
www.burjkhalifa.ae/en/index.aspx
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Disrupting the courier market with GPS tracking Written by Laura Mullan Produced by Heykel Ouni
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H E U N ITE D N ATI O N S estimates that as many as 4bn people around the globe live in places where there are no street names or numbers. This is particularly prevalent in the UAE and the Middle East, but is also common in emerging markets like Pakistan, Nigeria and Egypt. This simple lack of an address can have big consequences – it makes receiving deliveries difficult and it makes e-commerce Approximate number sluggish. However, of employees at Dubai-based Fetchr Fetchr believes it has the answer, and it’s in your pocket. Tapping into the GPS location service on your phone, the international courier service is revolutionising the world of shipment and delivery in both the Middle East and abroad. By leveraging cutting-edge technologies and tracking systems, Fetchr enables delivery of parcels directly to you, wherever you are.
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“In these regions, drivers might pick up 30 packages at the warehouse in the morning, and then they will call the consumers. The customers will then have to actually describe their location and say ‘it’s the second street on the right after the grocery store’, for instance. “It’s very suboptimal because your fleet is subutilised,” he adds. “It’s also a huge pain for the consumer because they have to repeat this conversation every time they receive a package. It just doesn’t — Idriss Al Rifai, Founder work and the and CEO un-delivery rate is extremely high. “About 30-35% of A GAP IN THE MARKET packages don’t get Cities where Fetchr The usual delivery delivered because the operates from system in the Middle driver cannot find the globally East is an unpredictable customer. It’s a big one, explains Fetchr Founder problem, and this is why we and CEO Idriss Al Rifai, and this is how decided to deliver straight to your the Dubai-based firm can disrupt the mobile phone. People spend a lot of industry with a simple solution. time on their smartphones and so it’s “Whether you’re in the Middle East, a device which you have with you most Pakistan, Nigeria, Egypt or elsewhere, of the time. there are so many countries in emerging “We use the GPS location on your markets that don’t have address smartphone so you can receive your systems,” he says. delivery anytime, anywhere – that’s
“ We use the GPS location on your smartphone so you can receive your delivery anytime,anywhere – that’s the genius of Fetchr”
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the genius of Fetchr.� By using GPS, Fetchr is not only circumventing the problem of not having an address, it is also tapping into the mushrooming mobile market in the UAE. The region has the highest level of smartphone penetration in the world, according to a report by Newzoo, and so Fetchr has a promising target demographic. This successful concept has taken hold in the region, and for Al Rifai, there middleeast.businesschief.com
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is one statistic that sums up the company’s success – its undelivery rate. “For a traditional logistics company in the e-commerce market, the undelivery rate is anywhere between 25% to 35%. This means about 30% of parcels never gets delivered either because the customer doesn’t want it, the delivery company cannot find the customer, or the experience has been so painful that the customer decided to cancel it. “‘Cash on delivery’ is the typical payment method for e-commerce in 100
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the UAE, and so if a parcel is undelivered that’s a huge cost. In contrast, our return rate is only about 6%, which demonstrates how different we are.
A TECH-DRIVEN COMPANY Like apps such as Uber and Deliveroo, the Dubai-based company uses an algorithm to match couriers with pick-up and drop-off points. Its basic service asks customers to choose a time slot and also offers the option to drop-off a package with a receptionist or a safe space.
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As well as this, the company’s Fetchr Al Rifai. “Everything at Fetchr is cloudNow offering can also pick up your based, dynamic, and run by algorithms package in less than 45 minutes and whereas many other logistics companies deliver immediately to the recipient. are based on pen and paper. Being able to use GPS locations is “Being dynamic is so important to us,” important to the company – “From he continues. “It means we can adapt a consumer perspective, it’s very to consumer requests, whether that’s important to have full visibility and changing a location or bringing a new traceability on where your order is and task to the system. the estimated time of arrival,” “We’ve made the platform explains Al Rifai. However, scalable but perhaps, the firm is also proud most importantly, we’re of its dynamic, building something technology-driven that we wish we had vision. when we’re on the Disrupting ‘the last other side of the table.” Number of nationalities mile’ delivery industry, employed globally the firm partnered with ‘NEXT DESERT UNICORN’ by Fetchr Eniverse Technologies Hailed by Fortune as the and Skycart last year to ‘next desert unicorn’, Fetchr deliver the very first autonomous has come a long way since its drone delivery service in the region. humble beginnings. Like many tech It may be a while before you receive startups, the first few years of the your first parcel by air as this technology company’s life were challenging ones, is still in its early stages, but it clearly Al Rifai says candidly, but since then demonstrates Fetchr’s commitment to its promising concept has helped it reinventing the logistics landscape achieve worldwide success. with new technology solutions. “We started Fetchr with three deve“We’re a technology-first company lopers and six years later we now we that happens to do logistics,” notes have close to 3500 employees,” he
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• In the UAE, retail represents about $426bn in sales, and e-commerce represents about 1.9% of that. • We started Fetchr with three developers and six years later we now we have close to 3500 employees • For a traditional logistics company in the e-commerce market, the undelivery rate is anywhere between 25% to 35%. In contrast, Fetchr’s return rate is only about 6%.
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“ We’re a technologyfirst company that happens to do logistics. Everything at Fetchr is cloudbased, dynamic, and run by algorithms” — Idriss Al Rifai, Founder and CEO
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says. “We’ve grown rapidly. Last year alone, we grew by 600%. Right now, we’re recruiting about a hundred people a week and we’re still growing.” Fetchr’s progress can not only be seen by its expanding employee count, it is also evidenced by its growing global footprint. Using its growth in the UAE and its presence across 6 countries today, the Dubai-based firm is now turning its gaze to Kuwait, Pakistan and beyond and is planning to be in approximately 12 markets by the end of 2019.
REINVIGORATING E-COMMERCE With this ever-growing reach, the delivery courier service is also helping local merchants and brands build, launch and grow profitable ecommerce businesses in the region. “In this region, retail represents about
$426bn in sales, and ecommerce represents about 1.9% of that,” explains Al Rifai. “This is extremely low if you compare it to other regions such as the UK, the US or China – the main reason for this is that logistics has been a big impediment of e-commerce growth in the region. “Over the last six years we’ve grown quite a lot and we now serve all top 10 ecommerce companies from the region and outside the region,” he continues, “but I think it’s just the beginning of the story. We’re still investing in technology, and better customer experience so we’re definitely on the right track to continue this growth and unlock the region’s potential.”
Click to see how logistics app Fetchr works
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Idriss Al Rifai Idriss Al Rifai is an entrepreneur passionate about disrupting the Middle East retail market with technologies and customer-centric services that enable the growth of e-commerce in the region. Idriss has developed and optimized a last mile delivery solution specifically for the e-commerce needs and requirements in the Middle East. In 2012, Idriss founded Fetchr which has evolved to become a full end-to-end logistic solution, backed by technology, for e-commerce companies, regional players, social media sellers as well as SMBs in the MENA region. Fetchr is also the first company in MENA to raise $52M in funding to date ($11M Series A and $41M Series B), led by a top tier Silicon Valley VC, New Enterprise Associates. Idriss’s goal is to empower all deliveries through technology in emerging markets. Previously Idriss worked for MarkaVIP, a leading ecommerce
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player in the MENA region, where he headed the operations and built an in-house logistics department for the company to expedite deliveries. Prior to this he worked as a consultant at Boston Consulting Group (BCG). Idriss holds an MBA from University of Chicago’s Booth School of Business. He is also a Rath and Fulbright scholar and Endeavor entrepreneur.
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“ There is so much more that we could do, whether you’re talking about restaurant deliveries or courier services, I think your smartphone, and the Fetchr app, are at the centre of it”
In its brief history, Fetchr has seen incredible growth, and it sounds like it is only beginning to scratch the surface of what is possible. “If you think about it, the sky’s the limit,” reflects Al Rifai. “There is so much more that we could do, whether you’re talking about restaurant deliveries or courier services, I think your smartphone, and the Fetchr app, are at the centre of it.”
— Idriss Al Rifai, Founder and CEO
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Procurement amidst a blockade: Qatar Airways is in it for the long-haul Written by Laura Mullan Produced by Heykel Ouni
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Against the backdrop of the blockade, Qatar Airways’ trailblazing procurement strategy is helping to deliver a flight experience like no other
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aking off from runways across all six continents, the burgundy logo of Qatar Airways has become synonymous with luxury, excellence and customer service. The Doha-based firm has tirelessly earned its stripes as a five-star airline, gaining accolades for its service time and time again, but perhaps the most distinguishing feature of the Qatari airline is the pride its staff reserve for the company. “Before being a buyer, we are an ambassador of our brand,” says Mr. Liazid Benkoussa, Senior Vice President of Procurement and Logistics – and perhaps it is this belief which is helping the company raise the bar in procurement. Today, procurement is a pressurised discipline to be in, with departments
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under ever-increasing pressure to reduce costs and sustain genuine supplier relationships. However, the pressure is perhaps tenfold for the team at Qatar Airways. Overcoming the blockade It’s been nine months since four of its Gulf neighbours – Saudi Arabia, UAE, Bahrain and Egypt – imposed a blockade on Qatar, posing a challenge quite like no other for businesses across the country.
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“Before being a buyer, we are an ambassador of our brand� Liazid Benkoussa, Senior Vice President of Procurement and Logistics
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Despite this, Qatar Airways has deftly tackled the upheaval and, in doing so, it has demonstrated the talent, expertise, and resolve of its staff. “The blockade has definitely had an impact on us,” notes Benkoussa candidly. “It currently prevents people from having the luxury and the freedom to choose the airline they want to travel with. We would like to enable any kind of client to experience Qatar Airways no matter where they are living. “The blockade not only affects our clientele, it also has a huge impact on procurement activity because we had some key suppliers based in those countries,” he continues. “Fortunately, we’ve been able to work with our suppliers to mitigate this. “We were proactive. We asked our suppliers to change their company registration or asked their sister companies, based elsewhere, to procure the product and this was done very efficiently.” The airline also closely monitored its inventory to ensure that all
Qatar Airways in one of the only airlines worldwide to have earned a 5-star rating by Skytrax
the equipment needed for its economy class, business class and first-class operations was available and it is this proactive approach which has shielded the company from major disruptions. “It was very challenging but it’s with great pride that I can tell you that none of our flights departed without the original Qatar Airways products that we requested,” Benkoussa adds. In the dynamic city of Doha, the blockade may have seen an insurmountable challenge to
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“The blockade not only affects our clientele, it also has a huge impact on procurement activity because we have some key suppliers based in those countries. Fortunately, we’ve been able to work with our suppliers to mitigate this” Liazid Benkoussa, Senior Vice President of Procurement and Logistics
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Voted Airline of the Year by Skytrax in 2011, 2012, 2015 and most recently in 2017 overcome, but it is possible, and Qatar Airways made it happen. Procurement: A critical function In fact, the firm actually used this event as a catalyst to accelerate its existing five-year plan. Where it may have taken other airlines a few weeks or months to recognise the urgent need to adapt, Qatar Airways wasted no time in launching new and far-reaching routes to Turkey, Russia, Oman, Thailand and the Czech Republic, amongst others. After overcoming such mammoth hurdles, it’s clear that the importance of the company’s procurement
function cannot be underestimated. “It’s really linked to the vision of our Group Chief Executive, His Excellency Mr. Akbar Al Baker,” Benkoussa explains. “He has the drive to innovate and evolve our products, but he is also a businessman. “Therefore, he asked himself, ‘how can I upgrade my product, whilst also maintaining cost-efficiency for both the airline and its board members?’ “There’s only one department that can do that, and that’s group procurement. That’s why it’s so important.” Accelerating growth As the national carrier of the State of Qatar, the firm has undergone rapid expansion in recent years, proudly standing as one of the world’s fastest-growing airlines. “I work for an airline that is one of the rarest in the world as it has consistently grown in the market,” says Benkoussa proudly, and it’s clear to see why. The national airline has consistently strengthened its fleet with new
Video: Qatar Airways Airbus A350-1000 delivery from Toulouse to Doha
acquisitions and it was the launch customer for the coveted Airbus A350-900 and most recently A3501000. Qatar Airways was the first airline to operate the Boeing 787 in the Middle East, is a launch customer for the 777X, and has twenty 737 MAX airplanes on order. In 2016 the airline placed a record $11.7 billion order with Boeing for 30 B787-9 Dreamliners and 10 777-300ERs. This is not only indicative of the company’s growth, but also of its reputation and standing within the aviation community. “Qatar Airways is not only growing in terms of aircraft acquisition,”
adds Benkoussa, “it is also growing in terms of network.” Consolidated, digital procurement As you would expect, this accelerated growth has also had a knock-on effect on the company’s procurement strategy. Today, the Qatari airline has consolidated all its entities and subsidiaries into one procurement group which allowed it to order mass volumes of product and secure competitive prices for the organisation. What’s more, it is also leveraging modern technologies
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to prepare its procurement function for the digital age. “We are in the process of migrating to SAP Ariba,” Benkoussa says. “This procurement system will give endusers within Qatar Airways access to their contracts, their data, and the volume of product they need to target on a monthly or yearly basis. It’s a fully-automated and innovative procurement tool which will definitely enhance our process.
“Qatar Airways is not only growing in terms of aircraft acquisition, it is also growing in terms of networking” Liazid Benkoussa, Senior Vice President of Procurement and Logistics “It’s also important to bear in mind that we are the only airline that will introduce such consolidated IT tools in the aviation industry,” he adds. “How do I know that? Because SAP Ariba is conducting this exercise for the first time with Qatar Airways.” Close supplier relationships However, aside from this, the key to the company’s procurement transformation perhaps lies in the way it creates sincere and genuine relationships with its suppliers. Ensuring consistent communication and setting ambitious KPIs for
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its vendors, sustaining supplier connections is definitely high on the agenda for the Qatari airline. When customer experience is at the cornerstone of its operations, it’s clear that Qatar Airways can’t accept anything less than the best for its customers. “We are meeting the clientele’s demand and supporting group procurement by interacting with our suppliers in a much deeper and professional way,” says Benkoussa. “But it’s important that, when we’re developing these relationships, we clearly present and reflect
what a dynamic and innovative company Qatar Airways is. “It’s not possible to secure our cost-efficiency if you are unable to show the supplier the exact type of airline we represent,” he adds. “We need to be the sellers of Qatar Airways before being the buyer.” Fair, ethical practice Benkoussa also highlights how the national airline takes a fair but thorough approach to ensure that suppliers share the company’s ethical practices. As such, Qatar Airways takes a zero-tolerance approach
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to vendors who are associated with major issues such as child labour, environmental concerns, bribery and discrimination. “We wholly reject these kinds of unethical practices,” says Benkoussa. “We are very fair when we tender a supplier and don’t discriminate based on its location. We make sure we give suppliers the chance to introduce the best offer and best practices that they can for Qatar Airways.” Qatar Airways’ suppliers also recognise its underlying desire to innovate. By meeting its demands and developing new and exciting products, it is these relationships which are helping to propel the company forward, distinguishing it as a customerfocused, customer driven-airline. Q-Suite innovation None of the company’s products exemplifies this more so than its highly-anticipated Business Class Q-Suite. Debuting a year ago at the ITB travel trade show in Berlin, the
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pod-like suites promise more privacy, choice and personalisation to travellers. Benkoussa says that it’s products like the company’s Q-Suite which are helping to up the ante in the travel sector. “Although it’s in business-class, it is very much a first-class product,” he notes. “Qatar Airways is always enhancing and innovating the latest trends in the aviation industry and that is thanks to the relationship we have with the suppliers as well as the entire team at Qatar Airways.” Consistently trying to deliver high-quality whilst balancing a healthy finance book, Qatar Airways also ensures that its economy fliers also receive its renowned five-star treatment. Benkoussa says that this is clearly illustrated by the company’s new and improved economy class menu, which is going the extra mile for its customers. “We introduced cost-saving measures but we also upgraded the product itself,” explains Benkoussa. “The quantity will be upgraded and
“We’re successful because the clients evolve, the clients demand more and Qatar Airways always listens” Liazid Benkoussa, Senior Vice President of Procurement and Logistics
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there will be 30% more food than any other airline in the world. “It will have more expensive items such as salmon and asparagus which is quite rare for economy class,” he continues. “We decided to dedicate a little bit more effort on our economy clients who decide to fly often with us and value our product. We respect them and so we decided to enhance the product for them.” When upholding positive
procurement practices or maintaining supplier relationships, all roads lead back to the customer, says Benkoussa. By putting customer service at the forefront of its vision, Qatar Airways has reinvented its procurement strategy and carved out a path as one of the leading airlines in the sector. Customer-focused, customer-driven Gaining countless awards for its cabin service and more, it is clear that the airline’s sincere, hands-on approach to its customers is what
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gives it a competitive edge. “You can see that the relationship between Qatar Airways and its own clientele is quite focused and attentive,” Benkoussa explains. “That’s the reason why we like to be innovative in order to gain our customers’ attention and make sure that Qatar Airways always exceeds their expectations.” Guaranteeing that it is meeting these high standards, Qatar Airways takes on internal and external audits to ensure there is no degradation of
service and also consistently collects feedback from its customers. By evolving and adapting, the Qatari airline has side-stepped the series of hurdles in its path and cemented itself as a major player in the fiercely competitive airline sector. The latest chapter in Qatar Airways history is one which has been defined by the national blockade, but looking ahead to 2018, Benkoussa is optimistic about the company’s prosperous, dynamic future. “It would be very difficult for me to
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even consider working for another airline after working for Qatar Airways,” says Benkoussa. “The demands and the expectations at the company are so high that I think it would be unsatisfying to work for another entity. “Qatar Airways will always have a prosperous future because this company truly understands the needs of the client,” he adds.
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“We evolve because we want to attract a wide demographic of customers – whether it’s economy, business or first-class travellers. No matter their profile, they are most welcome on the Qatar Airways to experience our five-star product. We’re successful because the clients evolve, the clients demand more and Qatar Airways always listens.”
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Against the backdrop of the blockade, the state of Qatar has proved that business is open as ever. The national airline has handled the situation with grit, innovation and dignity, and although the challenges are far from over, it seems that Qatar Airways is in it for the long haul.
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Bringing the five-star treatment to hotel IT
Written by Laura Mullan Produced by Craig Daniels
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Set on the iconic Palm Jumeirah island, Atlantis, The Palm has come to characterise the ultimate Dubai experience. With whimsical and luxurious amenities and pragmatic digital tools, the five-star hotel guarantees that you’ll be awe-struck from the moment you check in
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ringing the ethereal legend of Atlantis to life, Atlantis, The Palm is easily one of the most recognisable hotels in the Dubai skyline, if not in the world. A record-breaking 15.8mn people visited the dynamic city of Dubai last year, but the hotel’s VP of IT Anthony Lynsdale believes that the five-star property is quickly becoming a destination in itself. “A lot of people want to come here because they’re looking for a once-in-a-lifetime-style experience. They want to take away a memory,” Lynsdale muses. “Many of our guests choose to book Atlantis because it’s a destination in itself; it’s a landmark property for Dubai. “There’s lots of competition and there are lots of great hotels in the city,” he continues. “So how do we differentiate ourselves? Our motto is to blow away the customer with amazing experiences – that’s what we live by and that’s what makes us unique.” Located on the Palm Jumeirah,
one of the world’s most iconic holiday destinations, and nestled within 42 acres of lush greenery, the hotel overlooks the sparkling coastline of the Arabian Gulf and offers 1,539 rooms, 23 restaurants, cafes and lounges, a luxurious spa, immersive aquarium, and an awardwinning waterpark for its guests. But with such a mammoth operation, how does Atlantis, The Palm ensure guests receive its acclaimed five-star standard treatment time and time again? For Lynsdale, the answer is simple. Not only does the hotel consistently go the extra mile for its guests, it is also tapping into cutting-edge technologies to ensure that the resort is well-equipped for the digital age. Practical, pragmatic IT Digital transformation and disruption are just some of the many buzzwords that have saturated the tech sphere in recent years. For Lynsdale, the hotel’s digital strategy is not about following trends, it’s about taking pragmatic, practical steps to support the business
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with the very best infrastructure, to help achieve its goals. “Our digital strategy really revolves around partnering with the business and stakeholders, identifying what their pain points are, and prioritising where we can gain efficiencies,” Lynsdale explains. “We really want to make sure that we’re fully utilising the systems that we have today. In IT, there’s often a tendency to shop around and buy systems, instead of fully optimising the systems already in place. Are
we getting the very best from the current vendor, from the system? There’s definitely an aspect of making sure that the systems we have today are reaching their full potential and driving efficiencies. “It’s also about making sure that our systems are future-proof and scalable to support our other property currently under construction, The Royal Atlantis Resort and Residencies,” he adds. Connecting IT and marketing In our ever-connected world, where
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devices are endlessly at our fingertips, technology and marketing have become increasingly entwined. The importance of this connection is something which Atlantis, The Palm doesn’t underestimate, and Lynsdale has therefore made significant efforts to elevate the business’ marketing division to bring it to new heights. “Understanding the nature of the hotel business is key – with such a large resort, if you don’t get the marketing right, whether it’s digital or physical, you will miss opportunities to engage with guests,” Lynsdale comments.
“Nowadays, everything is at our fingertips. We’re using mobile apps. We’re using websites. We have access to a lot of information. “We have certain traditional IT systems that need to be maintained, but I think where the real business transformation will come is our strong focus on digital marketing,” he continues. “That’s something I’m conscious of and the key reason I’ve built a strong relationship with our marketing and sales divisions,” concludes Lynsdale. Information at your fingertips None of Atlantis, The Palm’s
The year that Atlantis, The Palm was founded
2008
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information points demonstrates this better than its interactive digital signs, which are strategically placed throughout the resort. Brimming with world-class facilities, it could be easy for guests to miss out on some of the resort’s renowned amenities, but thanks to this marketing tool, navigating the resort can seem as easy as walking through your own home. “Atlantis, the Palm has a huge footprint, so it was imperative for us to bring all of our information together by using a best-in-class, centralised content management system,” says Lynsdale. “It’s about making sure we have the relevant information, at the relevant location, at the right time so that our guests can avail of our facilities, whether it’s new discounts, happy hours, or water park experiences.”
“Our motto is to blow away the customer with amazing experiences – that’s what we live by and that’s what makes us unique” Anthony Lynsdale, VP, IT
Social-media savvy In a similar vein, the Dubai-based hotel has also focused on boosting its social media presence. Last month, the beach-side resort reached a million Facebook fans. To celebrate this, it created ‘Atlantis Fan Suite’ – a money-can’t-buy hotel experience whereby social media followers were given the chance to stay in one of the hotel’s brand-new rooms,
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Number of staff working for Atlantis, The Palm
3,100 decked out with unique social mediainspired innovations, at no cost. Every element of the suite is linked to Facebook, whether it’s unlocking your door with your Facebook login, to ‘poking’ your personal butler if you need assistance. “They furnished it with a little bit of technology, so for instance, it has an interactive mirror that shows your Facebook feed when you check in,” notes Lynsdale. “It’s something quirky, but again, it also shows our continuous innovation and our drive to blow away the customer
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with every interaction.” Mobile interactivity Mobile technology is quickly changing the hospitality game and this is something which Atlantis, The Palm has undoubtedly tapped into. Recently, the luxury hotel resort partnered with Wi-Q to develop an intuitive web app that allows guests to order food and drink from the comfort of their sunbeds. “We’re pushing the menu to them so that they can order items and
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get them delivered to where they’re located,” explains Lynsdale. “Guests are using more devices, more frequently. Mobility on the guests’ side is increasing and so Atlantis is now working on attracting guests using mobile technology,” he continues. “We want to begin their journey before they arrive by creating an app where they can engage and discuss opportunities and activities
that they would like to do when they get here. Mobile connectivity is definitely something that we’re keen on bringing to life.” This snowballing effect of mobile technology isn’t just transforming the customer experience, it’s also helping to transform Atlantis, The Palm’s back of house operations. By equipping housekeeping staff, bell service, and front desk staff with mobile devices, the luxury
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“IT needs to be the centre of almost everything. It’s about making sure that we’re continuously improving the guest experience”
Artwork copyright by Wi-Q Limited
Anthony Lynsdale, VP, IT
The web app designed and built by Wi-Q Limited
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hotel ensures that employees can respond to requests at the touch of a button. “With a resort of this size, we have a lot of staff that are using mobile technology, whether it’s to manage guest requests, or to help manage the hotel’s dayto-day tasks,” notes Lyndale. “We use a system called HotSOS to do this, and housekeeping uses a module of this called REX to manage the rooms. We’ve given our employees more than 200 smart devices, and now they’re operating pretty much in a paperless environment.” Managing a 1,539-bedroom hotel is no easy task, especially when it comes to checking in. Looking at simple ways to try and speed up the process, Atlantis, The Palm has also collaborated with Samsotech and Oracle Hospitality to create a passport check-in system that Lynsdale says is the “first system of its kind” in Dubai. A solid IT foundation Yet not all of Atlantis, The Palm’s innovations are future-facing.
Some integral digital initiatives have involved tirelessly tinkering away to update legacy systems and creating a hyper-converged infrastructure. “What we’re doing with our infrastructure is a stepping stone for two reasons: one is the ability it gives us to have a disaster recovery site, and secondly it is building the platform for our yet-to-launch sister hotel in Dubai, The Royal Atlantis Resort and Residences,” notes Lynsdale. “We will have a very scalable infrastructure platform going forward. Our team is always looking out for something new, and the business is demanding more from the IT function. They’re pushing us and always looking and searching for the next big thing.” Imparting a lasting travel experience, Atlantis, The Palm has earned its stripes as a five-star hotel and a must-see destination in Dubai, but for Lynsdale, it is technology which has played an integral role in ensuring that guests always receive the best-in-class service it has become renowned for. “IT needs to be the centre of almost everything,” he reflects. “It’s about making sure that we’re
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Number of rooms at the Atlantis, The Palm
The area covered by Atlantis, The Palm property
1,539
29 hectares 17 hectares
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The area covered by the Aquaventure Waterpark
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continuously improving the guest experience. “Technology has played a key role in the way we manage the business, whether it’s the data that we review, analyse and make decisions on, or how guests consume our services. For us, technology is paramount.” Atlantis, The Palm has seen a root-and-branch transformation of its digital function and although technology has played a pivotal role, Lynsdale says that this is all thanks to his team’s hard work and perseverance. “Without a dedicated team of technology professionals all of this wouldn’t be possible,” he says, candidly. By all accounts, it seems that at Atlantis, The Palm, the company’s staff are its greatest assets. It’s an exciting time for the Atlantis brand – the hotelier is opening a succession of new hotels including Atlantis Sanya in the South China Sea and is exploring expansion opportunities in tourist hotspots such as Hawaii. Amidst this, Atlantis, The Palm hasn’t forgotten the fundamentals of a successful hotel digitisation strategy, and it is this pragmatic thinking which is helping the hotel provide a guest experience like no other.
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Powering ‘SMART’ DIGITISATION in the banking sector
Written by Laura Mullan Produced by Stuart Shirra
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Embarking on a root-and-branch transformation to use technology more smartly, United Arab Bank is focused on what matters – its customers
D
igital transformation and digitisation are just some of the buzzwords which have saturated the banking space in recent years. For United Arab Bank (UAB), the company’s digital strategy isn’t about following trends or excessive expenditure on new technology, it’s about taking pragmatic, informed steps to ensure that the focus is on what matters the most – the customer. With this focus in mind, UAB is using up-to-date technology to realise true potential of digital transformation so that the customer receives the world-class service they expect. UAB’s Chief Operating Officer Izzidin Abusalameh says, “I do believe that behind each service or transaction we do for our customers, there is either a human story or a commercial interest and, in both cases, we cannot miss out on these.
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Therefore, customer service is, and will remain, one of our top priorities.” “Digital transformation is a prime focus for any bank or financial institution, but UAB is keen to achieve this objective through ‘smart digitisation’ by adopting latest technologies and utilising the power of data.” For Abusalameh, UAB’s digital transformation strategy is straightforward – apply the latest technologies in simple, smart and proactive ways while keeping the bank’s customer in mind. “By applying technology in an appropriate way, we aspire to be proactive,” he explains. “This allows us to reach out to our customers who may need help before they even raise their hand to ask for assistance. This proactive approach is the cornerstone of our philosophy on which our digital transformation is based.”
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“I do believe that behind each service or transaction we do for our customers, there is either a human story or a commercial aspect and, in both cases, we cannot miss out on these� IZZIDIN ABUSALAMEH Chief Operating Officer
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UAB has a strong reputation in the UAE’s banking industry since it was established in Sharjah about 43 years back. While in 2017, the bank made an annual net profit of AED 17 million, it has clocked an impressive AED 36 million profit in Q1 2018 demonstrating the strength of its ‘core’ business. Smart digitisation To deliver ‘smart digitisation’, Abusalameh says that the bank is working on a plan to consolidate the number of systems it has. In doing so, it is also creating a robust IT structure, using powerful state-of-the-art tools from the tech industry to ensure operational efficiency, productivity
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36
MN
The United Arab Bank’s profit in Q1 (AED)
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and sustainable growth. “It entails careful selection of technologies and only working with the industry leaders in that specific market,” Abusalameh says. “We use industry leading market research rankings and look into certain areas of technology to see who the market leaders are. We deep dive into their functional capabilities and evaluate their technical components according to the bank’s current and future
requirements in order to arrive at an optimal technology stack in sync with the bank’s overall IT architecture. “Working alongside tier one technology providers to implement their “specialised” version with minimum customisations in line with industry best practices has become a guiding principle,” he elaborated. By undertaking a deep level of planning and understanding, the UAEbased firm is getting the maximum potential from its technologies.
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Unlocking the potential of technologies Abusalameh says that this pragmatic approach is helping the bank connect its different technological tools so that it can create one streamlined digital strategy. “UAB is also investing in new Enterprise Resource Planning (ERP), Human Capital Management (HCM) and Customer Relationship Management (CRM) systems from SAP to eliminate non-value added tasks so that staff can focus on their core activities while enhancing productivity. “When you acquire a new global HR system you will also acquire new best practices which,
1975
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The year that the United Arab Bank’s was founded
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of course, increases efficiency,” he says. “This is also applicable to our other systems such as ERP.” The power of data Today, data is often described as the ‘new oil’ – valuable to have, even more so if it’s refined and used efficiently. UAB recognises the importance of data and is fully committed to utilise data & analytics to drive business growth. “Today, data science is what everyone’s talking about by far,” Abusalameh adds. “Data hasn’t become valuable overnight, it’s always been important but what has significantly changed is the computing power, data storage capability & the means of organising it. “That’s why I always encourage the bank’s head of digital and head of data to work closely together more than ever before. With changing times, our impetus is more towards using statistics and data science to help the bank leverage the power of predictive analytics in real time.” In this way, data ensures that continuous improvement is at the cornerstone of UAB’s strategy.
“We want to be recognised as a bank to stand by, a bank which puts the customer first” IZZIDIN ABUSALAMEH Chief Operating Officer
The company’s commitment towards being a data driven bank can also be evidenced by the confidence placed in it by Informatica (a leading data management platform) through an award for innovative usage of its data management platform and products last year. In-depth understanding Yet, with ever-more data, this is not only driving efficiency and operational excellence internally, it is also transforming the customer’s experience. “In every bank today, data helps companies gain a 360-degree view of their customers but if you gain even more data, you will be able to predict their behaviour, improve your service,
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and provide a 3D view of your customers whereby you understand them a bit deeper,” Abusalameh explains. “This can make much a difference if you can then reach out to a customer. The company’s digital transformation has been a huge task but it hasn’t gone unnoticed by the international tech community, apparent as the bank collected the Genesys Award for Best Use of Technology in the Banking sector last year.
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A mindset shift Referring to the biggest challenge for the bank, Abusalameh said that the mindset shift that took place to bring digital transformation was a daunting task, but it was successfully implemented by the management. “For any transformation journey, changing the mindset of the company is usually one of the top challenges,” he says. “It basically requires openmindedness and commitment
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from everyone in the team starting from the top management.” In addition, Abusalameh considers rigid technology software another challenge to implement smart digitisation process. “Many of the world’s major technology suppliers need to do more to make their products more flexible and easy to implement & upgrade,” he notes. “The more flexible your platform is, the quicker you can
adapt it and take it to market.” United Arab Bank will always remain known for – its continuous commitment to its customers. “We’re aspiring to give the best customer service in the UAE,” Abusalameh concludes. “We want to be recognised as a bank to stand by, a bank which puts the customer first.”
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Securing Sharjah’s
SUSTAINABLE FUTURE Written by Catherine Sturman Produced by Robert Gray
S E WA
Chief Efficienology Officer Eng Afra Alowais discusses SEWA’s commitment to meeting the utilities needs of its citizens and businesses population of just 2,000 in 1950, Sharjah has witnessed unprecedented growth. Now the third largest city in the United Arab Emirates, its population exceeded 900,000 in 2010, and is set to surpass 1.5mn by 2020. To cater to such increased demands on its utility services, Sharjah is increasingly implementing new projects, technologies and partnerships to attract and retain talent in the region and further boost its economy. One such area of focus is the demand for electricity, particularly within peak hours. This is in addition to the growing need for reliable gas and water supplies to accommodate the city’s expansion. Responsible for regulating the power industry in Sharjah, the Sharjah Electricity & Water Authority (SEWA) has undergone a significant change. The first utility provider in the Emirates to secure ISO50001:2011 certification in Energy Management Systems, SEWA
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“By regularly hosting customers in the Majlis of the Happiness Centres, SEWA is committed to understanding its customers’ needs”
harnesses renewable resources and has undertaken a number of strategic projects to support the green growth of the city. Whilst its power capacity has been increased and indeed stabilised, the business remains determined to provide the best value and services, exploring new business models and processes to cater to the increasing expectations of its customers. Appointed as Chief Efficienology Officer in 2016, Eng Afra Alowais explains that SEWA is developing ‘green growth’, alongside a strong sustainability approach across all of its operations. Responsible for driving the initiatives relating to efficiency and technology, Eng Alowais will thus contribute to the sustained adoption of best practices in the entire UAE power sector, spanning generation, transmission and distribution.
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Chief Efficienology Officer Eng Afra Alowais
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SEWA employees at a company innovation event
INCREASED DEMAND Overhauling its water lines in Sharjah has been the first step of SEWA’s sustainability strategy. “After careful analysis, we determined it was more costefficient to retrofit the old water lines. These are expected to last more than 30 years and continue to meet the highest environmental regulations,” Eng Alowais says. “SEWA is one of the main supporters of the national agenda for demand side management endorsed by the
“SEWA is one of the main supporters of the national agenda for demand side management endorsed by the Federal Ministry of Energy” Afra Alowais, Chief Efficienology Officer, SEWA
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Federal Ministry of Energy. This is also a policy to ensure water security and is the cornerstone of SEWA’s Strategic Plan.� The projects will also seek to ease any water shortages experienced, and increase the capacity of traditional water lines. In 2017, the company installed over 80,000m of new water lines, which will
deliver over 100mn gallons of water per day. Its projects will also utilise new materials and technologies to increase water conservation, such as digital tools to detect, and help to alleviate potential water leaks. Fostering or establishing strategic relationships with more than 35 international companies has enabled SEWA to participate in knowledge sharing to guarantee best practices. The company has also recently SEWA recognises been in talks with GE to further innovative staff reduce its emissions as part of its 2020 Vision, promoting clean energy and advancing Sharjah as a City of Conservation. “SEWA has started an Energy Efficiency Program in line with the vision of H.H. Sheikh Sultan Al Qasimi for Sharjah to become the Sharjah City of Conservation, with the aim to save 30% of
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Interview with Sky News arabia, Emarat TV
energy through energy efficiency initiatives,” explains Eng Alowais. “Recently, we have launched an ambitious retrofit programme under the mandate of the Energy Efficiency Program. We also aspire to create a sustainable shift in consumer behaviour and their energy consumption practices. This will achieve a consequent reduction in energy and water resources used and provide financial savings for
the participating companies. “Furthermore, The Clean Energy Business Council have supported our endeavours.”
CUSTOMER ENGAGEMENT By regularly hosting customers in the Majlis of the many Happiness Centres in the emirate, SEWA is committed to understanding their needs and works to extend this dialogue with them through social
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media and ad hoc projects. “We held some productive focus groups during the innovation projects and will sustain these interactions,” adds Eng Alowais. “Our customers are prosumers who want to have a voice in how their utilities are managed and operated. We have introduced a channel for customers to communicate directly with the SEWA
Chairman and the new insights this has enabled are invaluable.” Utilising the FORTH Innovation Method, SEWA recognised that customers were behaving differently in the way that they had historically interacted with utility providers. “Customers were becoming ‘time-poor’ and welcomed the chance to perform business online,” notes Eng Alowais.
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“We gained a far deeper insight into customer needs through a series of customer focus groups. We received excellent co-operation from a number of our business customers who participated and helped us understand how to enhance our services and to investigate future opportunities. “Several new business cases were presented, at the conclusion of each innovation project, and SEWA was the first organisation in the Middle East to use this new innovation method,” adds Eng Alowais. Listening to customers’ concerns surrounding sustainability, and their desire to access and pay bills online, has prompted SEWA to implement Green Billing. “Green Bill has been optimised for use on a mobile app and customers have the flexibility to use a variety of channels to scrutinise their bill. It was a ‘no-brainer’ for us to adopt this because it reduces our overheads and immediately contributes to our global sustainability goals,” says Eng Alowais. Through the Green Bill campaign,
SEWA reduces emissions by eliminating the need to print invoices, and which additionally improves security of customer data. Invoices can be delivered monthly through a number of digital platforms, and grants over 400,000 subscribers the ability to pay their utility bills securely online. Dr Rashid Alleem
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NEXT STEPS SEWA has received unwavering support from H.H. Sheikh Sultan Al Qasimi, who has placed increased value on the learning and development of human capital and the quality of life of inhabitants in the emirate, which is coupled with the vision and sustainability leadership of SEWA Chairman Dr Rashid Al Leem. Beyond this, SEWA will continue to partner with external stakeholders to enable long-term success and strong employee engagement. “SEWA is an approachable company with a willingness to embrace new ideas, transform and grow,” concludes Eng Alowais. “Over the next year, we will align our stakeholders and drive the focus towards preparedness for achieving planned energy efficiency. “We will be on track to achieve a 30% reduction in consumption patterns in Sharjah emirate by 2020. The business of our customers will be able to continue to grow but energy waste will be reduced considerably as awareness of the processes spreads.”
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Afra Alowais and the team at SEWA open a new project
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