Business Chief Middle East & Africa Edition – April 2019

MIDDLE EAST & AFRICA EDITION APRIL 20 19

DIGITISING THE VIEWING EXPERIENCE

EMBRACING THE LATEST TRENDS TO STAY AHEAD

Department of Culture and Tourism —

Procurement transformation and supply chain digitalisation Director of Procurement Waleed AlSaeedi discusses the company’s vision for the future City Focus

Big business in Egypt’s capital

TOP 10

Biggest companies in the Middle East

FOREWORD

H

ello and welcome to the April

how these organisations are seeking

edition of Business Chief Middle

to digitalise their services in an era of

East & Africa!

digital transformation.

For this month’s cover feature, we

Our leadership feature this month

speak to Waleed AlSaeedi, Director

looks at how technology has influenced

of Procurement at the Department of

the way Gecko Petroleum Services

Culture and Tourism – Abu Dhabi, to

conducts its operations. We speak

learn about the organisation’s vision

with General Manager, Mohammed

for procurement transformation and

Morgan, to reflect on how success can

the digitalisation of the supply chain.

be achieved in the region.

“In order for the organisation to

In addition, we zone in on Cairo to

best serve the people of the UAE,

examine what life is like in the Middle

my procurement department has to

East’s largest metropolitan area. Our

consistently innovate and operate

top 10 this month counts down the

with agility and foresight in order

companies with the most revenue

to ensure that our operations have

in the region.

the goods, services and materials that it needs, and that the most costeffective resources in the market are procured,” he says.

Elsewhere in the magazine, we speak with Alizz Islamic Bank, OSN and

The latest issue of Business Chief Middle East can be read here.

Enjoy the issue!

Sean Galea-Pace. sean.galea-pace@bizclikmedia.com

Public Investment Corporation to see

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03

MEA EDITION EDITOR IN CHIEF

SEAN GALEA–PACE MANAGING EDITOR

OLIVIA MINNOCK

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CONTENTS

12 34

The vision for procurement transformation and supply chain digitalisation at the Department of Culture and Tourism

44

EMBRACING TECHNOLOGY THE DIGITAL IN THE OIL AND DISRUPTION GAS SECTOR OF DELIGHT

54 Equality, diversity and respect:

How Marian Salzman is defining the business conversation

City Focus

PEOPLE POWERED: SIX THINGS I LEARNT FROM CREATING A SUSTAINABLE SOURCING MODEL

66

76 TOP 10

Companies in the Middle East

84

CONTENTS

98

Exterran

128

AXA

112 146

Siemens OSN

Mutual 168 Old 194 Insurance

182

Alizz Islamic Bank

210

Public Investment Corporation

Emmerson PLC

Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

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12

APRIL 2019

The vision for procurement transformation and supply chain digitalisation at the Department of Culture and Tourism 13

WRIT TEN BY

DA LE BENTON PRODUCED BY

GLEN WHITE

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D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

Waleed AlSaeedi, Director of Procurement at the Department of Culture and Tourism — Abu Dhabi, outlines the vision for procurement transformation and the digitalisation of the department’s supply chain

A

s a government agency, the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) is tasked with a major goal: to

further the development of Abu Dhabi as a dynamic 14

and fast-evolving global destination of distinction through diverse leisure, business, culture and entertainment experiences for residents and international tourists. With a responsibility driven by government, achieving this places greater scrutiny on the organisation’s resources, budget and in turn its procurement function. Waleed AlSaeedi, Director of Procurement at DCT Abu Dhabi, recognises this responsibility. “In order for the organisation to best serve the people of the UAE, my procurement department has to consistently innovate and operate with agility and foresight in order to ensure that our operations have the goods, services and materials that it needs, and that the most cost-effective resources in the market are procured,” he says.

DCT Abu Dhabi’s departments uwalse a variety APRIL 2019

15

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D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

“ As an employer of choice for the profession we were able to attract industry experts and enhance our internal capabilities” 16

— Waleed AlSaeedi Director of Procurement DCT Abu Dhabi

APRIL 2019

of inputs, ranging from ‘common types’ such as training, facilities management contracts, computers, furniture and other standard items, to ‘rare services’ such as the transportation and handling of antiquities, hiring performing artists and the refurbishment of historic buildings. As a result of this, the organisation’s supplier base is extensive, complex and requires procurement to “cast its net far and wide in order to find the right solutions to the organisation’s needs”. Since 2015, the organisation’s strategy has focused on cost minimisation and the

CLICK TO WATCH : ‘ABU DHABI CULTURE MOBILE APPLICATION’ 17 implementation of a more business-

for ways in which it could rationalise

oriented approach. While previously

purchasing in order to be ready for the

DCT Abu Dhabi was tasked with just

2015 agenda. “We put an emphasis on

providing services, today its various

supporting DCT’s strategy in develop-

departments are also required to make

ing Abu Dhabi’s supplier base with

business cases for their initiatives and

three core purposes: to support local

look for ways in which they can pay for

businesses, particularly the SME

the services that they offer to the

sector; to help to develop local

public and to other government

capabilities – which will benefit us in

entities. Following his appointment as

terms of costs and simpler supply

Procurement Director in 2013, AlSaee-

chains; and to reduce the risk of

di was required to undertake a

depending on just one or two major

complete review of the spend under

suppliers.” Over time, AlSaeedi has

management against DCT Abu Dhabi’s

seen these approaches deliver on DCT

five-year corporate objectives and look

Abu Dhabi’s ambitious goals and

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“By devolving responsibility to our end-users, we have freed up resources to look at more strategic activities” — Waleed AlSaeedi Director of Procurement DCT Abu Dhabi

This has seen an internal restructuring over the past five years, to create three units focused on spend: Procurement Operations (Buyers), Strategic Sourcing (Business Partners), which manages all the pretender work, and a section that looks after Performance Management, which develops and manages information systems and identifies improvement areas. “As an employer of choice for the profession we were able to attract industry experts and enhance our internal capabilities,” says AlSaeedi. “As part of our efforts to streamline, all the low-value direct purchasing has been

ultimately deliver success in serving

devolved to end user departments. By

the organisation’s agenda. This, he

no means do we ignore this important

feels, has resulted in the procurement

aspect of DCT Abu Dhabi’s operations,

department becoming a critical and

but we are primarily focused on and

influential department within the

responsible for setting up blanket

organisation, recognised across the

purchase agreements (BPAs) and

board as a key player driving the

managing Purchase Orders (POs). By

organisation forward.

devolving responsibility to our end-

DCT Abu Dhabi is a merger of three

users, we have freed up resources to

authorities: the Abu Dhabi Authority for

look at more strategic activities such

Culture and Heritage, Abu Dhabi

as performance sourcing and contract

Tourism Authority and the cultural

management improvements.”

department of the Tourism Development & Investment Company (TDIC). m i d dle ea st .busines s chief. co m

DCT Abu Dhabi has also redefined how it manages and approaches its a fri c a .busi ne ssc hief. com

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D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

22

“ Technological and digital transformation is at an advanced stage where now the questions are: how do we make this better and how do we take it to the next level?”

— Waleed AlSaeedi Director of Procurement DCT Abu Dhabi

APRIL 2019

business in order to maximise its resources and avoid unnecessary costs; achieved not only by finding the cheapest suppliers for a project but in assessing total cost of ownership of assets and the long-term impacts of BPAs and contracts.

“Ultimately, our market knowledge enables us to advise the organisation’s departments on the most financially efficient way they can achieve their goals,” adds AlSaeedi.

With technology redefining the procurement function globally, DCT Abu Dhabi has had to undergo a digital transformation of procurement in order to truly embrace the digital age.

AlSaeedi notes that implementing new technologies and digital processes has been a key method to increasing efficiency in the department’s systems and processes while also enhancing transparency, accountability and data analysis. Some of the projects that fall under digitalisation include a new Contract Management System that allows DCT Abu Dhabi to capture risk, implement digital signatures to reduce cycle time analysis. DCT also implemented a procurement dashboard, m i d dle ea st .busines s chief. co m

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D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

24

which has enabled, and will continue to

It’s fair to say also that the use of our

enable, the company to make evi-

digital cloud systems enables us to

dence-based decisions using accurate

capture meaningful data from opera-

data. “By implementing these along

tions in real time; for example, I can see

with a few other projects there have

the status of our tenders on our

been considerable improvements

dashboard or review supplier perfor-

made to processing time, oversight

mance reports as soon as they are

and accountability,” he says. “Our

uploaded. It enhances tactical decision

procurement dashboard, for instance,

making but also allows for evidence

gives us the ability to analyse data and

based strategic planning,”

supports DCT Abu Dhabi in its compet-

With technology comes a demand

itive analysis of the market, strategic

for agility and flexibility and so procure-

insights on spend as well as with

ment managers, buyers, sourcing spec-

improving individual employee metrics.

ialists, category managers and others

APRIL 2019

25

E XE CU T I VE PRO FI LE

Waleed AlSaeedi In close collaboration with the Executive Management Team, Waleed AlSaeedi is responsible for managing, monitoring and oversight of procurement, contracts, contracts administration and Supplier Relationship Management (SRM) for the TCA’s corporate requirements.

In addition the role encompasses responsibility for the coordination of procurement activities across the organisation, policy compliance, coordinating procurement and contracts activities, and supervising procurement and contracts employees.

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D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

have to be able to adjust to meet an

ment, creating more data that DCT

ever-evolving digital landscape.

Abu Dhabi can use. One area of

AlSaeedi expects to see disruptive

particular interest to AlSaeedi is the

technologies take a stronger hold of

ever-increasing ability of smart

procurement as computing capacity

systems to accrue expanding data sets

and generational forces push digital

and consequently, the methods and

and technological approaches even

approaches to interpreting said data.

more into the mainstream, such as the

“It will create new challenges for

use of machine learning and AI in

procurement that we’ll need to

contracts management and the greater

respond to,” he says. “Overall though,

use of online and automated tools for

it’s clear to me that despite these

inspection and performance manage-

changes we are not replacing the

26

APRIL 2019

ability of people to make procurement

value complex engagements which

decisions. The difference, in fact, will

require multiple different stakeholders

be the strength of evidence, backed by

being included in the process. Stan-

smart data and tools, to make and

dalone systems are already in place

execute those decisions.”

e.g. Oracle, Dashboard and a Contract

Key to this has been the implementa-

Management System (CMS), and the

tion of automation software in the

company is currently working on

source-to-pay process. DCT Abu

integrating all of these into one

Dhabi has automated most of the low

combined system. “The benefits of this

value, less complex engagements and

are pretty obvious: the amount of time

works intensively on creating solutions

this saves to my team in terms of

and models to accommodate high

closing communication gaps and 27

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D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

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APRIL 2019

CO M PAN Y FACT S

The Department of Culture and Tourism — Abu Dhabi manages the Emirate’s tourism sector and markets it internationally through a wide range of activities and major events, aimed at attracting both culturally sensitive visitors and increased investment.

As part of its priorities, the Department also ensures the preservation of Abu Dhabi’s cultural heritage, especially its historic and archaeological sites.

However, its focus is not solely on the past: it is also responsible for overseeing the development of the landmark museums in Abu Dhabi’s Saadiyat Island Cultural District, including the Louvre Abu Dhabi as well as the upcoming Zayed National Museum and Guggenheim Abu Dhabi.

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D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

avoiding endless paper trails is exceptionally high and as a result we focus on adding more complexity to our requirements of suppliers for instance, by requesting environmental or social responsibility data,” he says.

“We’ve also looked at Strategic Category Management (SCM) under the Business Partnering roles, which has enhanced the focus on analytics as an increasingly critical new approach to procurement best practice. As a first step, we have developed an advanced 30

dashboard which provides data points from our procurement operations covering all aspects i.e. spend tracking and management for instance. The next phase will be to start using data analytics reports, manage the spend performance and visualise the data.”

A supply chain and procurement function can only be as strong as its supplier and vendor network and as DCT Abu Dhabi has streamlined its procurement and embraced technology, it has been able to reassess the way it categorises and measures its suppliers of choice. “Our supplier relationship management framework is designed to match risk and value with APRIL 2019

supplier capabilities,” says AlSaeedi. “It is a question of strategic clarity and building trust through fair and open tendering and working closely with suppliers during contract implementation.” Supplier relationships can change and DCT’s core strategy is to leverage its data to measure and track performance, so relationship strength assessments are based on evidence.

“Technology will help us to manage these relationships: for example, data from supply histories can be used to identify the share of spend under management that goes to each major firm, and we will then be able to look at areas where we need to work on widening the base.”

With technology continuing to evolve, digital transformations never end but simply evolve alongside the technology.

AlSaeedi notes that DCT Abu Dhabi’s immediate digital future will see the roll-out of a central, digital procurement portal; DCT is one of nine government entities involved in piloting the portal. “We will need, naturally, to review and change certain things as we see how they work in practice but I’m confident in the job the steering m i d dle ea st .busines s chief. co m

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D E PA R T M E N T O F C U LT U R E A N D T O U R I S M

committee has done over the past few years having witnessed the work first hand. The second phase will be launched later this year, by which time the portal’s functionality should be at 100% and we use can it to its full capacity.”

The portal implementation will involve training for DCT Abu Dhabi’s procurement team as well as increased work with suppliers to accommodate digital procurement processes. “In the coming year we will most likely review the procurement and supply management 32

strategy with reference to DCT Abu Dhabi’s corporate strategy and will no doubt revise our category management approach as to better leverage the capabilities of the portal,” says AlSaeedi.

Whatever the future holds for digital procurement, DCT Abu Dhabi’s efforts to streamline and to further embrace technology and innovation has created a foundation that it can build on.

AlSaeedi is keen to stress that as an organisation, DCT Abu Dhabi is consistently looking for new ways to innovate in the digital and technological area. “Technological and digital transformation is at an advanced stage where now the questions are: how do APRIL 2019

S U P P LY C H A I N

33

we make this better and how do we take it to the next level?” he says. “And thankfully, I’m confident that my young, skilled but also very experienced team has the answers to those questions and will continue setting the high standards I’m accustomed to.”

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LEADERSHIP

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EMBRACING TECHNOLOGY IN THE OIL AND GAS SECTOR As Gecko Petroleum Services joins a renowened Abu Dhabi-based conglomerate, General Manager Mohamed Morgan discusses how technology influences the firm’s operations.

WRITTEN BY

APRIL 2019

SE AN GA LE A-PACE

35

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LEADERSHIP

W

ith digital transformation seeing companies worldwide implementing increasing levels of technology into their

day-to-day operations, it’s become more important

than ever before to embrace the latest trends in order to stay ahead of competitors.

Having worked in a variety of different positions in the oil and gas industry across the Middle East and Africa, Mohamed Morgan, General Manager of Gecko Petroleum Services, has a broad knowledge of how success in the region can be achieved. He believes that he can reflect on past experiences to aid his company’s progress. “Most of the time, 36

we’re working with the same customers and structures as well as dealing with the same production processes,” explains Morgan. “Due to my technical experience in the oil, gas and marine sectors, I believe it’s helped me to have a good understanding of customer expectations.”

OPERATING IN THE MIDDLE EAST Since its inception in 2002, Gecko’s core business has been built around industrial rope access services for civil industries and infrastructures. In 2010, the company shifted its business model and focused on highly specialised rope access skills such as non-destructive testing (NDT) and mechanical services for the oil and gas upstream sectors. “When the upstream sectors were struggling, Gecko found it essential to establish its presence in the marine APRIL 2019

37

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LEADERSHIP

“ The Middle Eastern market is very dynamic” — Mohamed Morgan, General Manager, Gecko Petroleum

sectors by targeting shipyards across the UAE. We captured business during dry-docking by offering our skilled IRATA certified rope access technicians who can perform NDT and mechanical jobs as well as blasting and painting,” explains Morgan. “Soon after, we expanded our team by adding skilled ground level teams to supplement the Rope Access teams. As for sailing vessels, we offered them a riding squad for the full duration of their voyage.”

Morgan believes his company has evolved significantly since he first joined

38

in 2015. “With my technical experience and background, the shareholders felt I could help take the company to the next level under their guidance and directorship,” explains Morgan. “I feel we’ve accomplished a lot since then and we’ve managed to improve our skills. I focused on adding depth to our industrial services and strengthening our pool of highly specialised skills to include a wide range of inspections, testing and blasting techniques.”

In order to achieve success in the Middle Eastern market, Morgan affirms that continuous improvement is key, particularly in the oil and gas industry.

APRIL 2019

39

“The Middle Eastern market is very

succeed. You need to have a track

dynamic,” he says. “The market is

record in the UAE or in the Middle East

still emerging and oil and gas is still

in order to do the work. Pricing has also

considered an important part of the

been very challenging, especially when

economy. The market is not for the

you have such market conditions.

opportunistic. Anyone who thinks they

However, if you have the right product,

can achieve success in the short-

service and a good financial back-

term are wrong. However, it’s a good

bone, in addition to local expertise

platform for companies like ours who

and clear strategy, then you’ll be able

have been here a long time and are

to see opportunities.”

planning on staying around.

“If companies want to work here

EMBRACING TECHNOLOGY

without a strong financial backbone

With technology having an ever-increas-

that they can lean on, they will not

ing influence on businesses, Morgan

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LEADERSHIP

believes customer demands have changed because they expect service to be conducted in a more efficient manner than ever before. “Customers are increasingly demanding faster solutions. Everything has to be more time-sensitive. Face-to-face interaction with the customer has been reduced extensively and now everything is automated. Communications go through digital platforms and I expect this development will continue in the future.”

One of the key ways in which business40

es are able to respond to this changing customer base is through a business model that enables flexibility. There’s less complexity in our systems. We’re flexible and lean, so we’re able to manoeuvre very quickly and respond promptly to the customer’s needs which helps us fulfil our customers’ requirements,” he explains. “Our operations team are mostly young and energetic people who are very dedicated and motivated to do the work. We’re adopting new procedures and more importantly, our sales and administrative teams are tech-savvy and connected so they are able respond to customer queries quickly.”

APRIL 2019

41

“ Customers are increasingly demanding faster solutions.

Everything has to be more time-sensitive” — Mohamed Morgan, General Manager, Gecko Petroleum m i d dle ea st .busines s chief. co m

In 2018, in preparation for a New Year’s Eve event called “Light Up Dubai”, Gecko successfully installed over 11,000 LED unit and 256 spotlights, as well as 24 moving heads on the Burj Khalifa in Dubai. With each spotlight weighing over 65kg, the entire project required around 30km of cabling spread over 750m vertically. Morgan believes it was a huge achievement for his company.

“We’re all very proud of that exceptional achievement, from the most junior staff on the ground to the most senior shareholders. It’s the largest light and a fri c a .busi ne ssc hief. com

LEADERSHIP

“ Ma iminto queli simendi cipitat eculpar uptalio tur? Slaceptur aceaquami vo loreium sed quiam iqu veliquu derum oli Abore.”

— Name of Person, Position and company 42

“ The plan for the next two or three years is to focus on downstream oil and gas in Abu Dhabi and, with the help and support of NCC, we believe we can be successful” — Mohamed Morgan, General Manager, Gecko Petroleum

APRIL 2019

media show in the UAE and potentially the Middle East too. We also installed the 2019 NYE moving lights again in Dec 2018.”

FUTURE PLANS With one eye on the future of the company, Gecko has recently confirmed a partnership agreement with support services firm, National Catering Company (NCC Group), in a move that aims to tap into the growing potential in the oil and gas industry. “A key reason why the shareholders accepted a partnership with NCC was that they are very big in the oil and gas sector in Abu Dhabi and maintain strong relationships with a vast customer base there. They also have a great reputation in the market and have a very strong financial background,” says Morgan. “We believe that under the umbrella of NCC, we can enter the oil and gas downstream market very strongly.

The plan for the next two or three years is to focus on downstream oil and gas in Abu Dhabi and, with the help and the support of NCC, we believe we can be successful.”

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TECHNOLOGY

44

THE DIGITAL DISRUPTION OF DELIGHT Business Chief sits down with CEO Vinod Muthukrishnan to explore the ways in which his startup CloudCherry is using predictive data and analytics to disrupt the customer relationship management space WRITTEN BY

APRIL 2019

HARRY MENE AR

45

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TECHNOLOGY

T

here aren’t many CEOs that can look back on as eclectic a career as Vinod Muthukrishnan, the man at the helm of

consumer experience startup CloudCherry.

From nine years in the Merchant Navy, where he served as a navigation officer, he pivoted to Market Simplified, a fintech startup providing mobile solutions to financial institutions worldwide. He founded CloudCherry in 2014, which has since grown into a disruptive, Cisco-backed customer experience management company.

CloudCherry is based in Salt Lake City, Utah, with offices in Singapore, Dubai, Bengaluru and Chennai.

46

Muthukrishnan, reflecting on the challenges and benefits of moving from sector to sector, notes that “a fresh perspective shows you things that being stuck in the weeds for the last six months doesn’t.” Conversely, “there’s nothing that compensates for a deep awareness of a domain,” he says. “Every time I’ve been in an alien environment, I’ve done two things: initially, I have taken a first principles approach to the problem. Then I surround myself with people who know that domain really well.” The combination of expert advice and fresh eyes is, he maintains, a winning strategy. “It gives you an advantage because you’re not weighed down by the baggage you accumulate when you’ve been in a domain for 20 years.” In retrospect, he says: “I’ve always APRIL 2019

47

chased problems I believed were worth solving.” Today at CloudCherry, Muthukrishnan is using data analytics and machine learning to disrupt the customer relationship space on behalf of a diverse roster of brands spread across multiple markets.

The genesis of CloudCherry was a conversation between Muthukrishnan and several of the company’s founding team. “We tried to count on two hands how many brands we loved and would never leave,” he says. “And we realised that we were generally having fairly m i d dle ea st .busines s chief. co m

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TECHNOLOGY

“ We tried to count on two hands how many brands we loved and would never leave, and we realised we were generally having subpar 48 customer experiences” — Vinod Muthukrishnan, CEO & Co-Founder, CloudCherry

subpar customer experiences.”

Muthukrishna and CloudCherry’s other founders saw this as puzzling, given the emphasis placed on customer experience by so many leading brands. “Like true techies, we believe that there’s a software to solve every problem in the world.” Muthukrishna was certain the issue lay with the technology being used to process and analyse customer data, which was resulting in the efforts of companies and the needs of the customer becoming lost in translation. He laughs, “We naively assumed there was no software that truly helped brands understand the customer experience.

Obviously, down the line, we realised that such software was out there, but the problem persisted.” The two issues remaining, they realised, were that the

APRIL 2019

CLICK TO WATCH : ‘B2B CJM GENERAL’ 49 majority of customer data was gath-

ience is all about journeys; it’s not just

ered through surveys, and that, once

a point-in-time survey or an app store

customer data was collected, compa-

review. A deep understanding of cus-

nies had little guidance to act upon it

tomer journeys, understanding where

efficiently without engaging expensive

customers are coming from, where

consulting firms. Now, in 2019, Cloud-

they’ve been and where they’re going

Cherry specialises in both the collection

is at the heart of understanding cus-

and analysis of customer data, turning

tomer experiences. So CloudCherry

it into efficient, actionable insights for

offers complete customer journey

the client company. “Our whole quest

understanding for a brand.” Secondly,

is to find the causal relationship between

Muthukrishnan stresses the idea that

factors,” says Muthukrishnan.

the customer’s journey is a subjective

“There are three very simple ideas

experience. “It’s very important that we

upon which CloudCherry is built,” he

know what happened on a customer’s

continues. “Firstly, the customer exper-

journey,” he says, explaining that “if you

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TECHNOLOGY

50 were to go to a store, it’s very important

utilisation of cutting-edge technology

to know how often you come in, how

comes to the fore. “We put a lot of emp-

much you usually spend, what products

hasis on our machine learning to make

you like, who you are. Often, all this

sure that we’re actually able to tell brands

data sits in siloed systems throughout

ahead of time what they’re supposed

a company.” By bringing together all

to do,” he says.

available data on its clients’ customers,

Despite the data-driven precision with

CloudCherry can create a complete

which customer behaviour is dissected

picture of its customers’ habits and

by CloudCherry, Muthukrishnan insists

wants, which can then be turned into

that, far from reducing them to a coll-

solutions. The company’s third core

ection of inputs, “digital is supposed

tenet, Muthukrishnan explains, was to

to make the interaction more human.

“move away from a retrospective way

I actually believe we’re going back to

of looking at data towards a more

the times where experiences, because

predictive, proactive approach.” This

of the lack of technology, used to be

third pillar is where a lot of the company’s

personal. Businesses used to make

APRIL 2019

eye contact. They used to call you by your name because you were one of their 100 customers. They knew you.”

By using machine learning, bots, numerous data inputs he suggests, modern brands are recreating that “back to basics” service, but at scale.

Of course, different markets value different elements of service, and the needs of customers vary on a case by case basis. Between markets, Muthukrishna demonstrates, different technologies might be key to providing good service. “In Malaysia, QR codes are a huge hit. In North America, they are not. In Singapore, reliability and predictability are very important

“ All of our focus and energies are on making sure our predictive analytics are ahead of the curve” — Vinod Muthukrishnan, CEO & Co-Founder, CloudCherry

to customers, whereas, in India, customers want to be wowed.” Helping Muthukrishnan and CloudCherry navigate these global markets is the

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TECHNOLOGY

52

“ We put a lot of emphasis on our machine learning to make sure that we’re actually able to tell brands ahead of time what they’re supposed to do” — Vinod Muthukrishnan, CEO & Co-Founder, CloudCherry

APRIL 2019

company’s diverse cast of investors. “We have Pelion Ventures from Salt Lake. We have The Chennai Angels from India, Vertex Ventures from Singapore and obviously Cisco,” he says.

“Cisco is very interesting because they are a strategic investor. They’re hands on. They understand what’s happening. At the same time, they have great respect for who runs the business.” Within their own region, each investor brings a different skillset to the table. For example, our Singapore business has hugely benefited from the introductions that Vertex has made for us. They’re a very well-known name in the region.”

Looking to the future, Muthukrishnan is excited about both the rising tide of the customer experience market and the course CloudCherry has plotted. “All of our focus and energies are on making sure our predictive analytics are ahead of the curve,” he says, noting that, more and more, we are heading for a survey-less world. “What do you do in a world where the customer isn’t really telling you what they want directly?

We’re optimising for a world where the standards of customer listening are going to be radically different.”

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PEOPLE

54

Equality, diversity and respect: How Marian Salzman is defining the business conversation MARIAN SAL ZMAN, SENIOR VP OF COMMUNICATIONS AT PHILIP MORRIS INTERNATIONAL DISCUSSES CONVERSATIONAL CURRENCY, THE BATTLE FOR EQUAL PAY AND RESPECT, AND THE FUTURE OF PHILIP MORRIS AS A SMOKE-FREE COMPANY WRITTEN BY

APRIL 2019

HARRY MENE AR

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PEOPLE

M

arian Salzman, Senior Vice President of Communica-

tions at Philip Morris, the world’s largest tobacco company, doesn’t smoke. As a veteran of three decades at the highest level of PR and marketing, Salzman has shaped the lens through which the world perceives some of its most iconic brands. From

Apple’s ‘Think Different’ campaign to the digitalisation of Rolling Stone Magazine, and from the popularisation 56

of the word ‘metrosexual’, to her latest role in transitioning the world’s largest cigarette manufacturer into a smokefree future, she has always been a bold wielder of conversational currency.

and then Chief Marketing Officer. And then I worked at Havas for almost 15

“I’ve led a marketing communications

years.” Since April 2018, Salzman has

and PR life,” says Salzman. “I’ve had

served as the Senior Vice President of

something like 38 job titles over the

Communications at Philip Morris

years, but very few employers. I had my

International and she can look back on

own company, which sold to Chiat\Day,

a career spent at the highest levels of

which became Omnicom. I worked at

media communications and public

Omnicom twice over the course of

relations, the battle for equal pay and

six or seven years. I worked at WPP,

equal respect, and the future of Philip

I worked at Y&R as their first in-house

Morris as a smoke-free company.

Futurist, and then later on worked at J. Walter Thompson as Chief of Staff APRIL 2019

“I think Philip Morris spent a long time searching for somebody who had my

57

“I’ve led a marketing communications and PR life… There aren’t many people out there who have a combination of global PR and bigger budget experience” — Marian Salzman, Senior Vice President of Communications, Philip Morris International m i d dle ea st .busines s chief. co m

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PEOPLE

“I have never seen a company that cares more about getting it right on this topic of inclusion and diversity” — Marian Salzman, Senior Vice President of Communications, Philip Morris International 58

kind of background, and there aren’t many people out there who have a combination of global PR and bigger budget experience,” says Salzman.

“It’s easy in the PR world to do a lot on a budget, it’s only at the CEO level where you’re going to have enough experience with big budgets – and obviously Philip Morris has the luxury of working with big budgets.” In 2017, the US Federal Trade Commission reported that marketing and promotional spending by the nation’s largest tobacco companies was just shy of US$1mn per hour. From her role as the CEO of global PR firm Havas, Salzman certainly has the necessary experience.

On the other hand, Salzman is no

APRIL 2019

CLICK TO WATCH : ‘PHILIP MORRIS INTERNATIONAL – CREATING A SMOKE-FREE FUTURE’ 59

stranger to creating cultural paradigm

and the rise of designer vodkas for

shifts on a budget. Philip Morris was

men.” Salzman found the word in use

also interested in the fact that she had

by the New Zealand media. Armed with

“done a lot of things that had gone viral”.

a research piece entitled The Future-

“I wanted to prove that you didn’t need

less Gender, Salzman was featured on

money to make news,” she says. “You

the front page of the UK newspaper

needed conversational currency.”

The Daily Telegraph explaining the

Salzman proved that point in 2003

term. In 2003, the American Dialect

during a campaign for beverage giant

Society named metrosexual its word of

Miller Beer. “I was the person who

the year, “and the rest is sort of buzz

publicised and promoted the word

marketing history”. While her success

metrosexual. It was 2003, and we

as the propagator of metrosexual is an

needed a place for Peroni to live in the

undeniable demonstration of Salzman’s

market in adjacency to Stella Artois

ability to shape the global conversation

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PEOPLE

$29.6bn Approximate revenue

1847

Year Philip Morris was founded

along with equal pay comes equal respect and recognition and notes the challenge of being a top-level female executive at the firm: “I’ve never really been iconic. I’ve always just been someone who worked hard.

I feel now, as one of two women on our Global Executive Committee, an extraordinary burden on behalf of all women to get it right.” In addition to

80,600+

60

Approximate number of employees

fighting for women in the boardroom, Salzman is applying her ideals to the business of cigarettes. “One of the things I’m most passionate about is that we need to do a better job making sure women get information about

– on a budget no less – she emphasises:

harm reduction,” she explains. “Because

“I’ve spent the last 15 years of my life

of regulatory restrictions on things you

trying to come up with something to

can and can’t do with women in media,

wipe that off my tombstone.”

it’s tougher to bring smoke-free

In her new role at Philip Morris

information to that demographic.”

International, Salzman believes she

Philip Morris is currently organising

has found exactly that. “I have never

a women’s initiative in order to mitigate

seen a company that cares more about

the health risks placed upon half the

getting it right on this topic of inclusion

world’s population. “You’ll see us

and diversity,” she says. Philip Morris

launch communications campaigns,

International is an Equal-Salary compa-

over the course of the next several

ny, ensuring that it remains committed

months that will include women who

to equal pay for men and women.

quit, woman who smoked themselves,

Salzman is devoted to ensuring that

and make themselves into role models

APRIL 2019

“The fact men are becoming smoke-free at a much higher rate than women makes it a feminist issue” — Marian Salzman, Senior Vice President of Communications, Philip Morris International

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PEOPLE

as a consequence.” However, the creation of a smoke-free world is more than a gendered issue for both Salzman and Philip Morris.

“We are a company committed to dramatic transformation; we’re taking people from combustible cigarettes, either to quitting or to move over to something in our smoke-free portfolio,” Salzman says. According to Philip Morris, 6.6mn people have already begun using the company’s flagship 62

smoke-free device. The IQOS heats tobacco up to 350°C (in comparison to the often-higher than 600°C produced by combustible cigarettes). As a result, “the levels of harmful chemicals are significantly reduced compared to cigarette smoke”. Salzman’s experience at the helm of companies and PR campaigns with high budgets will, she expects, prepare her to orchestrate this monumental shift in strategy for the company that owns Marlboro, Chesterfield, Benson & Hedges, Virginia Slims and L&M, a collection of some of the most iconic cigarette brands in the world. “This year is the APRIL 2019

“I hope my tombstone says: ‘She helped the planet become a land of nonsmokers” — Marian Salzman, Senior Vice President of Communications, Philip Morris International

year we re-enter civil society with a smile,” Salzman says. “I hope we will be able to turn the conversation towards getting people to give up their conventional combustible tobacco and move towards safer alternatives.”

Looking to the future, Salzman believes that 2019 is going to be the year she helps lead Philip Morris into the next phase of its evolution. “This is the year I champion more women being hired in more roles where they can make a difference for the company, and then for themselves and their families. By the time we get to 2025, I think the most important job of someone in my position is to be sure I have a successor, and that she is ready to step in and lead.” Salzman can look back across a career filled with hard work and undeniable results.

She concludes: “I hope my tombstone says: ‘She helped the planet become a land of non-smokers’.”

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S U S TA I N A B I L I T Y

PEOPLE POWERED: SIX THINGS I LEARNT FROM CREATING A SUSTAINABLE SOURCING MODEL 66

As sustainability becomes a pertinent topic in boardrooms across the globe, Suranga Herath, CEO of English Tea Shop, examines how businesses can create a more sustainable sourcing model SURANGA HERATH, CEO of English Tea Shop

WRITTEN BY

APRIL 2019

67

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S U S TA I N A B I L I T Y

68

T

oday more, than 1.66mn farmers

While a proactive commitment to

and workers are in Fairtrade-

sustainable sourcing is to be ap-

certified producer organisations.

plauded, setting up an entirely new

In my view, no other organisation

sourcing model – and doing it well – is

has done more to make consumers stop,

no mean feat. I speak from experience

consider and care where their food,

of converting English Tea Shop to run

drink, clothes and jewellery come

on a Creating Shared Value model

from than Fairtrade.

throughout our supply chain from

Inspired by Fairtrade and consumer

seed to cup. The impact of creating

demand for ethically-sourced products,

and implementing our own sourcing

there is an emerging trend for manufac-

model has been profound not only for

turers to develop their own sustainable

the farmers but for our business and

sourcing models – even the likes of

all those in our community, or our

Tesco and Sainsbury’s are following suit.

Prajāva as we like to call it.

APRIL 2019

“While a proactive commitment to sustainable sourcing is to be applauded, setting up an entirely new sourcing model – and doing it well – is no mean feat” — Suranga Herath, CEO of English Tea Shop

69

So, based on my experience over

because ethical sourcing is important

the years, I wanted to share some of

to your customers? Is it to be better for

the key things I’ve learnt about setting

the environment? Is it all of the above?

up a sourcing model.

What’s important is considering what long-term outcomes you want to achieve,

1. BE CLEAR ON YOUR MOTIVATIONS.

both for your business, and for those

The very first step should be asking

in the supply chain.

yourself why you’re setting off on this path. Is it to help support and share

2. START SMALL AND SCALE UP.

value with those in your supply chain?

Unless you’re starting a new business,

Is it to improve transparency? Is it to

it’s probably best to take a long-term

have a more secure and reliable

approach to sourcing. Having direct

supply chain? Is it so you can source

relationships with producers is both

increasingly high-quality produce? Is it

essential and time-consuming, and

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S U S TA I N A B I L I T Y

when trying to do the right thing. That’s why close relationships are so important – you have to have an innate understanding of what people want and need, rather than just doing what you think they need. The stronger your Prajāva, the better placed you will be.

4.BUILD A BUSINESS OF BUSINESS PEOPLE. This is one of the absolute best ways of sharing value through your supply chain. For us, this means helping our farmers to improve the quality and

70

quantity of their yield through support education and a trusted route building close relationships even more

to market rather than just paying a

so. It may be best to start working with

minimum price. For those who work in

one producer or co-operative under

our factories, we have a profit-sharing

your model, or on one project, and to

initiative called ‘Big Game’ which

grow from there.

involves them in programmes such as open book management, knowledge

3.YOUR BUSINESS MODEL IS ONLY EVER AS STRONG AS YOUR PRAJAVA.

goal of making English Tea Shop a

Prajāva is the Sri Lankan word for

significantly employee-owned busi-

community and taking a wide view of

ness. This ultimately drives employee

who this includes is vital. Creating

engagement and increases produc-

shared value throughout a supply chain

tivity too – there has now been a 31%

takes a great deal of thought – and it’s

increase in value added per employee

surprisingly easy to do the wrong thing

since the Big Game initiative was intro-

APRIL 2019

sharing and budget games with the

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“Unless you’re starting a new business, it’s probably best to take a long-term approach to sourcing — Suranga Herath, CEO of English Tea Shop

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S U S TA I N A B I L I T Y

“The impact of creating and implementing our own sourcing model has been profound not only for the farmers but for our business and all those in our community” — Suranga Herath, CEO of English Tea Shop 72

duced. Without wanting to be too trite

a framework for measuring social

about it, helping people help them-

and economic impact for your invest-

selves is much more sustainable and

ments and efforts and then tracking

powerful.

how business is directly and indirectly impacted as a result of such social

5.FIGURE OUT THE MEASURING AND MONITORING SYSTEM.

progress.

If you’re going it alone, you need to find a robust way of benchmarking

6.MAINTAIN A LASER FOCUS ON CREATING SHARED VALUE.

the outcomes of your model. Failing

Creating a sourcing model is not

to do so could cause more harm than

without its ups and downs and there

good. This could involve developing

are times when commercial realities

APRIL 2019

come knocking that can put you in difficult positions. My advice would be to focus your sourcing model on creating shared value that is, value for people throughout your supply chain, but also for your business. For me, this is what makes a model truly sustainable in that it is then protected from short-termism during leaner periods.

As our society becomes even more ethically-minded, it will soon be the norm for businesses to adopt and drive growth through sustainable sourcing models. We’ve already seen a good selection of early adopters make their mark, and I hope that the fruitful results produced will encourage others to take a leap of faith.

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CITY FOCUS

City Focus

76

Tahrir Square in the early morning.

Photo: Frank Schulenburg APRIL 2019

77

Business Chief explores Cairo, delving deeper into Egypt’s capital to examine what the city has to offer WRITTEN BY

SEAN GALEA-PACE

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CITY FOCUS | CAIRO

C

onsidered the largest metropolitan area in the Middle East, Cairo is the capital and the biggest city in Egypt with a population of

over 20mn people, according to World Population

Review. A city steeped in history, the River Nile runs through Cairo and the Pyramids of Giza, one of the wonders of the ancient world and attracts millions of tourists annually.

BUSINESS IN CAIRO With Egypt recognised as being one of Africa’s big78

gest economies, annual exports are valued at over US$20bn, with its prime commodities being petroleum products, crude oil, chemicals and textiles.

Although crude oil makes up a large part of Egypt’s industry, which produces almost a million barrels of oil each day, the country is also key producer of natural gas. Cairo itself is home to a number of big businesses across a variety of different industries that hold headquarters in the city.

COMMERCIAL INTERNATIONAL BANK Serving more than 500,000 clients and employing over 6,000 people, Commercial International Bank is one of only two Egyptian companies ranked in the Forbes Global 2000. The bank operates in four segments: corporate banking, investment banking, retail banking and other services, and has a market APRIL 2019

‘Egypt is one of Africa’s biggest economies, with annual exports valued at over $20bn’

79

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CITY FOCUS | CAIRO

The National Bank of Egypt towers viewed from the Nile. Photo: Faris Knight

value of $5.6bn, according to Egyptian Streets. It has also been reported by Reuters that the Abu Dhabi Investment Authority (ADIA) parted company with 400,000 shares in the bank in May 2018.

ORASCOM CONSTRUCTION Khan el-Khalili souk-market in Old Cairo, Egypt Photo: Joel Suganth

The other member of Forbes Global 2000’s list, Orascom Construction, is an engineering, procurement and construction contractor that was founded in 1950. As one of the region’s biggest corporations, it is active in over 25 countries and has executed a range

80

of large and complex projects across a wide range of niche core competences that accelerate the company’s position in local and international markets. Orascom Construction’s more noteworthy projects include the Mivida Estate Villas, the Nile City Complex, as well as the Cairo Festival City and Smart Village developments.

The interior of Ramses Station, Cairo.

Photo: Osama Khalil

NATIONAL BANK OF EGYPT Founded in 1898, the National Bank of Egypt is the nation’s oldest and largest bank, with over 338 branches across the country. Based in Cairo, the bank has played an active role in support-

APRIL 2019

CLICK TO WATCH : ‘CAIRO CITY GUIDE – LONELY PLANET TRAVEL VIDEOS’ 81 ing the financing of key activities in the national economy, including energy, electricity, petroleum, air transport, tourism and telecommunications.

GETTING AROUND THE CITY The largest air transportation hub in the country, Cairo International Airport is easily accessible by car, taxi and bus,

‘The Egyptian tourist trade has experienced a steady increase, welcoming 8.3mn tourists in 2017’

and is in the process of being con-

flights daily. The metro is regarded as

nected to Line 3 of the Cairo Metro

being the fastest and most efficient

to enable better links to the city. The

way to get around Cairo with the net-

airport is the second busiest in Africa,

work covering Helwan and other sub-

after Johannesburg International Air-

urbs. There are numerous bus routes

port, and handles approximately 3,400

to aid transport across the city as well

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CITY FOCUS | CAIRO

as a taxi, train, tram and Nile ferry service. Cairo is considered the hub and main headquarters for the majority of the transport network in Egypt.

A GROWING TOURISM HUB Tourism has also become an important part of the country’s economy and Cairo is a fundamental part of Egypt’s global tourism reach. Offering ancient museums, historical monuments and the world-famous pyramids, the Egyptian tourist trade has experienced a steady increase over the years, welcoming 8.3mn tourists to the country in 2017, according to official statistics.

Elhamy Al-Zayat, former head of the Egyptian Federation of Tourism Chambers, believes upgrading services for tourists is vital to encouraging more people to visit the country. According to AhramOnline, Al-Zayet commented: “We are at a crossroads. We have to find more skilled labour as soon as possible and fix hotels that may have deteriorated over recent years.”

According to the Express, it was found that Cairo is the world’s most cost-efficient city ahead of Mexico City and Antalya with meal prices, transport APRIL 2019

Cairo Tower at Night. Photo: Ahmed Santos

82

charges and housing costs all reviewed.

In the report which quoted travel-

19.5mn Approximate population of Cairo

969 AD

Year founded by the Fatimid dynasty

booking website lastminute.com, a day exploring in Egypt typically costs around $54 which includes a full tour and the city is recommended highly.

There are a number of religious monuments in Cairo, including the Cairo Citadel which is a beautiful piece of architecture and provides wonderful views of the city. There are three main mosques located in the Citadel; Mosque of Muhammad Ali, Al-Nasir Muhammad

8.3mn

The number of tourists who visited Egypt in 2017

Mosque and Mosque of Sulayman Pasha. Inside the Citadel, there are also three major museums: Al-Gawhara Palace museum, Carriage museum and the Egyptian Military museum.

One of the city’s most well-known monuments is Cairo Tower, which stands 187m tall, and has been the tallest structure in Egypt and North Africa for the past 50 years. It is considered the second most recognised landmark in Cairo after the pyramids. The city is also

‘Cairo Tower stands 187m tall, and is the tallest structure in Egypt and North Africa’ m i d dle ea st .busines s chief. co m

recognised as having the oldest and largest film and music industry in the Arab world, in addition to being home to the second-oldest facility of higher learning worldwide, Ak-Azahar University. a fri c a .busi ne ssc hief. com

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T O P 10

TOP 10

Companies in the Middle East Business Chief looks at the top 10 companies in the Middle East by revenue, according to Forbes Middle East’s top listed companies in 2018 WRITTEN BY

APRIL 2019

SEAN GALEA-PACE

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10

National Bank of Kuwait Kuwait

Established in 1952 as the first local bank and first shareholding firm in Kuwait, the National Bank of Kuwait has built a reputation as “The Bank You Know and Trust”. With US$3.6bn in revenue, the financial institution is Kuwait’s leading bank, providing a full spectrum of innovative and unrivalled financial and investment services to individual, corporate and institutional clients.

APRIL 2019

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09

Al Rajhi Bank Saudi Arabia

With $4.2bn in revenue, Al Rajhi Bank is recognised as being the world’s largest Islamic bank and holds over 600 branches. Founded in 1957, the company is one of the leading banks in Saudi Arabia with more than 9,600 employees. Holding headquarters in the Saudi capital of Riyadh, there are over 4,100 ATMs in the Kingdom and the bank possesses the largest customer base of its kind in Saudi Arabia.

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08

Emirates NBD

United Arab Emirates

The UAE-based banking company, Emirates NBD, was established in 1963 and currently has approximately 230 branches in the UAE and overseas. It remains the only bank in the Middle East ranked among the top 20 in the ‘Power 100 Social Media Rankings’ created by The Financial Brand. With a revenue of $6bn, the company has around 9,000 employees of 70 different nationalities working across the UAE, Saudi Arabia, Egypt, Singapore, India and the United Kingdom.

APRIL 2019

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07

First Abu Dhabi Bank United Arab Emirates

Based in Abu Dhabi’s Khalifa Business Park, the firm was formed following a merger between First Gulf Bank and the National Bank of Dubai. The company has conducted operations in over 19 different countries worldwide since it was founded at the beginning of 2017, and has a revenue of approximately $7.2bn. With a commitment to putting customers first, First Abu Dhabi Bank aims to invest continuously in people and technology as it seeks to develop a friendlier customer banking experience.

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06

National Commercial Bank Saudi Arabia

Another Saudi bank that generates a significant amount of revenue is the National Commercial Bank with around $9.6bn in reported revenue. As the second biggest bank by asset in the Middle East after Qatar National Bank (QNB), the business owns 90.7% of its investment arm, NCB Capital, and 67% of Türkiye Finans Katılım Bankası (TFKB), the leading participation bank in Turkey.

APRIL 2019

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05

Saudi Telecom Saudi Arabia

Holding $13.5bn in revenue, Saudi Telecom is one of Saudi Arabia’s largest telecommunications firms. The company is split into three categories: Al-Jawal, Al-Hatif and Enterprise services. Saudi Telecom aims to fulfil and satisfy the market requirements and is keeping up with the latest emerging technologies in the telecommunications industry. As a leading telecom provider in the Kingdom, the company is developing clear strategies to enable its staff to meet changing customer needs and requirements.

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04

Etisalat

Abu Dhabi

Founded in 1976 in Abu Dhabi, Etisalat operates in 15 countries across the Middle East, Asia and Africa. Confirmed as being the most powerful company in the United Arab Emirates by Forbes Middle East in 2012, the company is one of the region’s internet hubs and leading international voice traffic carriers in the region. Etisalat generates approximately $14.1bn in revenue.

APRIL 2019

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03

Saudi Electricity Saudi Arabia

The company was formed following the merger of existing Saudi firms in the Central, Eastern, Western and Southern regions in 2000.

Saudi Electricity is a major provider of electric power in the Kingdom and operates 45 power generation facilities in the country. The company has $15.5bn in revenue with the Saudi government owning around 81% of the firm .

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02

Qatar National Bank (QNB) Qatar

Since being established in 1964, Qatar National Bank (QNB) has become the leading bank in Qatar

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and the largest financial institution in the Middle East and Africa (MEA). According to Brand Finance Magazine, QNB is currently ranked as the most valuable bank brands in the MEA region and has approximately $13bn in revenue. With an ATM network of more than 4,400 machines and employing over 29,000 in 1,100 locations, QNB is recognised as a global giant in the banking sphere.

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T O P 10

01

SABIC

Saudi Arabia

Topping the list is leading chemical company SABIC with over $40bn in revenue. With more than 40,000 employees in 50 different countries worldwide, the company manufactures on a global scale and has five key innovation hubs in the Middle East, US, Europe, South East and North East Asia.

SABIC specialises in products such as chemicals, commodity and high-performance plastics, agri-nutrients and metals.

Photo Š Sabic

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EXTERRAN:

98

TRANSFORMING THE OIL AND GAS SECTOR WITH AN INNOVATIVE SUPPLY CHAIN TRANSFORMATION WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

GLEN WHITE

APRIL 2019

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EXTERRAN

Suraj Devadiga, Director of Supply Chain of Middle East & Asia at Exterran, discusses how his company is beginning to digitise its services in the oil and gas sector.

F

or manufacturers today, digitisation is vital if they want to remain one step ahead of the competition and perhaps nowhere

can this be seen better than in the oil and gas industry.

Regarded as a proactive solutions provider to a 100

range of global and regional oil and gas customers, Exterran is now embarking on the first phase of its digital transformation plan. Suraj Devadiga, Director of Supply Chain of Middle East & Asia at Exterran, highlights how the company’s procurement function has become a key part of Exterran’s operations. “In the past, procurement used to be where purchase orders were made. The company would say ‘I need this, go and buy it’ and it would be the job of purchasing to buy and provide it,” explains Devadiga. “What’s different now is that we ask lots of questions to drive value. Are we buying at the best price and is it in our plan? If so, are we buying it from suppliers who are qualified? Is this supplier consistent? Are we going to create a museum of suppliers and then end up having to spend more on maintaining parts and services? It’s APRIL 2019

101

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Project management Praj’s project management team consists of qualified, experienced and PMI certified professionals well versed with the global standards and practices.

Engineering Engineering is the backbone of Praj’sintegrated offerings.

More than 70% of the employee strength consists of engineers of various disciplines – Chemical, Mechanical, Civil & Structural, Electrical & Instrumentation etc. Praj has successfully leveraged their capability to provide modular solution to range of industries.

www.praj.net

Over the last few years, Praj has successfully supplied M industries such as Oil&Gas, Refineries, PetroChemicals and C engineering capability for designing modules and equipment clients and till date we have reference base in more than 75 been appreciated by our global clients. Leveraging our man highly price competitive solutions to the industry. Praj with more challenging projects in spirit of partnership with custo

Manufacturing Praj’s business lines are supported by its world-class manufacturing infrastructure. Praj has 4 manufacturing facilities in India. All the facilities have the capability to manufacture equipment in compliance with the most stringent requirements of various countries across the globe.

All the facilities are accredited with ASME U&U2 stamps and have also successfully manufactured equipment with CE, EN, GOST, DOSH certifications etc.

Supply Chain Management A strong backbone of SCM team supports the complexities involved in Praj’s business. With around 50 qualified professionals, the team handles procurement of over 100 categories of commodities, metals, equipment, electrical, automation, piping, structural, rotary equipment like pumps and compressors.

Modular Plants and Static Equipment to various process Chemical industries.This is enabled by our multi-disciplinary t. Our team has very good experience of working with global 5 countries. The quality systems are world-class and have nufacturing locations in India, we have been able to provide h its demonstrated capabilities is geared-up to take-up far omers.

FIND OUT MORE HERE

EXTERRAN

important to figure out exactly what we’re enabling.”

IMPLEMENTING DIGITISATION Having previously worked in India at General Electric Oil & Gas in a variety of different roles such as Senior Product Manager, Business Manager and then Head of Supply Chain Integration, Devadiga is well-positioned to oversee the beginning of Exterran’s digital transformation as it begins to digitise its operations. “We’re in the process of digitising our supply 104

chain operations in order to implement the same ERP globally and we’re also introducing the necessary digitisation platforms to enable engineering teams to work seamlessly across our locations in Houston, the UAE and Singapore. It also allows us to connect with the supply chain team which, similarly, is on a platform that allows us to collaborate as a global supply chain organisation,” he explains. “We’re very much in the nascent stages of digitisation and I believe our approach of low investment, high return is vital.”

“At our current stage of digitisation, we have invested in two key things.

Firstly, we have remote monitoring and APRIL 2019

“ We’re very much in the nascent stages of digitisation and I believe our approach of low investment, high return is vital” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran

diagnostics equipment that allows us to collect, collate, synthesise and then analyse information from equipment across various sites worldwide. Once we have refined our operations in one area, we can then implement this approach across our various locations which have the same operating dataset,” he says. “Digitisation is also enabling to us reduce our operating expenditure and better manage our finances.”

Devadiga believes the transition of three enterprise resource planning (ERP) systems to two has been key to his company as it looks to implement phase one of its digital transformation.

“In the third quarter, we’re targeting for all our pilots to be completed and launched to the platforms. We must be very judicious, take the feedback and refine it because you need a strategically significant dataset,” says Devadiga. “One of the big hurdles has been that we don’t have a contract operations site in the US where we just sell products.

However, in terms of the rest of the world, we have more of a 360- degree solution approach because we don’t just sell products but we also build, own, operate, and maintain them over five to 10 years. Ultimately, it’s the big global m i d dle ea st .busines s chief. co m

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105

Handle the Pressure We know you’re no stranger to pressure. At Atlas Copco Gas and Process, we strive to transform industrial ideas into solutions that help you thrive under pressure. That’s why Exterran has trusted Atlas Copco Gas and Process for over a decade to supply the critical turbomachinery they need. With solutions developed to ensure on-time completion of gas processing plants across the globe, we are a connected, accessible partner when the pressure is on and delivery timelines are tight.

Working with Atlas Copco Gas and Process ensures that you have a partner every step of the way, helping you handle today’s pressures while creating a sustainable future.

Find out how Atlas Copco Gas and Process can help you handle the pressure at atlascopco-gap.com

CLICK TO WATCH : ‘EXTERRAN OVERVIEW’ 107 sites in Argentina, Oman and Thailand

During the past year, our Middle East

where the first phase of our digital

operations in Oman and Bahrain as

transformation plan will be launched.”

well as our manufacturing facility in the UAE and Dubai are all on Oracle. But,

FORMING KEY PARTNERSHIPS

Pakistan, Nigeria, Thailand, Indonesia

Exterran has begun to work with

and the entire Asia-Pacific region still

Oracle across all its sites in North

use Sage Accpac as an ERP. That’s

America and Latin America. Through

why we’re rolling out these pilots only in

the company’s collaboration with

the Oracle ERP areas.”

Oracle, Devadiga believes his company

The importance of establishing and

has utilised ERP to introduce pilots

maintaining key partnerships is

successfully. “In the western hemi-

fundamental to all successful busi-

sphere, all our sites in places such as

nesses. Exterran has collaborated with

North America and Latin America with

industry leaders such as General

the exception of Peru are on Oracle.

Electric, Ariel Compressors, Caterpillar

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Intelligence Automation

Solutions for the Oil & Gas Industry Visit us at: www.intechww.com

USA

UAE

Saudi Arabia

LEARN MORE

Nigeria

Singapore

Pakistan

Agencies in:

Kuwait

Oman

Kazakhstan Qatar

Peru

North Africa

Angola

China

Indonesia

“ It’s up to us to select the compressor that Ariel may be manufacturing and marry it to the engine that Caterpillar might be manufacturing” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran

109

Engines and Atlas Copco. Devadiga

However, these two units don’t do

affirms that a good working relation-

anything by themselves. The engine

ship with partners is vital to success.

and compressor must be together

“Our partners are extremely impor-

and installed with the associated

tant,” he says. “From our perspective,

piping and other components in a

there’s a very high degree of depend-

manner that fulfils the purpose for

ency on these original equipment

which that compressor has been

manufacturers (OEMs). We need

designed. That capability exists with

them to value our association as a

us because we develop the solution in

delivery model for their products into

order to process and treat that gas.

the oil and gas industry because

It’s up to us to select the compressor

we’re packagers of their machines

that Ariel may be manufacturing and

and we buy the engine and compres-

marry it to the engine that Caterpillar

sor from the engine manufacturer.

might be manufacturing.”

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EXTERRAN

“ Ultimately, it’s the big global sites in Argentina, Oman and Thailand where the first phase of our digital transformation plan will be launched” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran

The bigger the challenge, the greater our energy CHTR

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111

LOOKING TO THE FUTURE

explains Devadiga. “We’re in the first

Looking forward, Exterran is set to

stage of collecting data and transform-

remain acutely focused on its digital

ing that data into information. But if we

transformation strategy. Valuing a

can implement tools where the informa-

mentality of “knowledge is power”,

tion can be gleaned from the data and

Devadiga believes it’s important to

made available to managers both at a

remain vigilant when gathering data in

high and mid-level, it will create a

the digital space. “We can’t improve

knowledge base that will allow us to

when we don’t know what we need

scale up from being this $1-3bn

improve on. The journey to knowledge

company and hit the $5bn mark. That

starts with three simple words which

has to be the goal.”

are extremely difficult for most people to say: ‘I don’t know’. But the moment we admit that we don’t know, that’s when we can start our journey,” m i d dle ea st .busines s chief. co m

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112

APRIL 2019

JOINTLY DRIVING DIGITAL TRANSFORMATION UNDER SAUDI ARABIA’S VISION 2030 WRITTEN BY

LAURA MULLAN PRODUCED BY

JAMES PEPPER

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113

SIEMENS

CTO AT SIEMENS SAUDI ARABIA, RAINER SPEH, EXPLAINS HOW THE FIRM IS GEARING UP FOR VISION 2030 WITH ITS IoT PLATFORM, MINDSPHERE

O

ur lives are more connected than ever before.

In fact, Gartner reports that consumers own on average four Internet of Things (IoT) devices

which communicate with the cloud whilst, globally, an 114

estimated 127 new devices connect to the internet every second. This cutting-edge technology is not exclusive to consumer goods; it is also upending industries across the globe. In sectors such as aviation, energy and manufacturing, connected IoT devices have quickly become the norm. But with reams of data and information at our fingertips, are we truly getting value from this information?

This is where Siemens has entered the fray with its latest innovative solution. Recognising that only a tiny fraction of industrial data is used and intelligently analysed, the technology giant has created MindSphere – a cloud-based, open IoT operating system which it likens to a ‘swiss army knife’ for IoT. It allows businesses to connect products, plants, systems and machines, equipping firms with the concrete application data that they can analyse and draw insights from.

APRIL 2019

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Rainer Speh welcomes MoMRA Minister to Siemens booth @KSASmartCities Conference 2017

1847 Year founded 372,000 Number of Siemens employees globally

+ 200 Regions where

Siemens operate m i d dle ea st .busines s chief. co m

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SIEMENS

“ M INDSPHERE ISN’T JUST A PLATFORM, IT’S ABOUT CO-CREATION” — Rainer Speh, CTO at Siemens Saudi Arabia

As the first CTO of Siemens Saudi Arabia, Prof. Dr Rainer Speh says that MindSphere is much more than a system, it is a new way of thinking. “MindSphere isn’t just a platform, it’s about co-creation. With our MindSphere Application Centre, we work alongside our customers to address their specific operational needs and improve their processes,” he explains. “Together, we discover their pain points and co-create solutions that fit their needs.” Today, Siemens

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APRIL 2019

CLICK TO WATCH : ‘WHAT IS MINDSPHERE?’ 117 has 20 MindSphere Application

one roof, Speh believes that the firm

Centres serving 50 locations in 17

is driving the co-creation of digital

countries. These centres employ

solutions together with customers.

around 900 data specialists and

With Industrie 4.0 being a reality,

engineers and focus on the specific

many businesses see digitalisation as

needs of a sector. In the Saudi capital

an opportunity to drive productivity,

of Riyadh, Siemens’ MindSphere

efficiency, speed and quality in their

Application Centre is able to offer

operations. Siemens and its network of

digital solutions spanning several areas

partners are co-creating tailor-made

including ‘Industrie 4.0’, smart infra-

applications to suit industrial custom-

structure, smart cities, agriculture

ers. “When you’re getting information

including vertical farming, energy,

in real time, it’s important to have the

hydrocarbon industries and cyberse-

right tools to analyse and interpret this

curity. By bringing digital experts,

data,” Speh explains. “This is where

domain experts and customers under

data analytics, artificial intelligence (AI)

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Introduction This is a Company wholly-Owned by the Saudi Electricity Company. It was Established on 1/1/2012, with a Structure that includes Five main Activities: Operations & Control, Maintenance, Planning, Engineering, and Technical Services.

Our Vision

To be among the ranks of leading international companies in electricity transmission by adopting the latest standards, systems and technologies.

Our Mission

Electricity transmission with high reliability and economic efficiency in a way that achieves optimal use of resources and supports sustainable development of the national economy.

Finance Terms Equity: 4.51

Asset: 37.42

Billion USD

Revenue 2.87 Billion USD

Transmission Asset data 1070 Substations

3,359

Transformers

Billion USD

Net Income:

0.51

Billion USD

409,999 Transformers Capacity (MVA)

80,817 Length of Lines (km)

71,000 Fiber Optic Cable (km)

EBIDTA: 2.26

Billion USD

Strategic Initiatives ASSET MANAGEMENT: National Grid SA intends to achieve the best Asset Management Performance per ISO 55000.

How to apply for Qualification?

SMART GRID: National Grid SA works on digitalization & Realization of modern network.

PROJECT MANAGEMENT OFFICE (PMO): National Grid SA aims to manage the project In efficient and effective manner.

Manufacturer can apply for a new Prequalification through the Online Manufacturers Prequalification Process (OMPQ) website: www.se.com.sa or email to Standards & Specifications Department Manager on MASuhaibani@ngrid.sa

and machine learning adds tremendous value. At the end of the day, it’s about drawing conclusions from this data. By using this data, we can monitor a whole plant or do predictive maintenance down to a single device. This is where we need to combine Siemens’ expertise with that of the client.”

Saudi Arabia is in the midst of a visionary transformation. With its eyes set on Vision 2030, the Kingdom is aiming to diversify its economy away

“ TOGETHER, WE DISCOVER THEIR PAIN POINTS AND THEN CO-CREATE SOLUTIONS THAT PERFECTLY FIT THEIR NEEDS” — Rainer Speh, CTO at Siemens Saudi Arabia

119 E XE CU T I VE PRO FI LE

Prof. Dr. Rainer M. Speh is Chief Technology Officer (CTO) of Siemens Ltd. headquartered in Riyadh, Kingdom of Saudi Arabia since 1 February, 2015. Before that he worked in the Infrastructure & Cities Sector as well as in the Business Unit Power Plant Controls of Siemens as their CTO for more than 15 years. From 1985 to 1999, he held several technical positions in the industry in Germany. He received his Professorship from the Technical University Kaiserslautern, Germany, in 2014 and is lecturing since 1996. He earned his PhD from the Technical University of Darmstadt in 1985, where he also studied Electrical Power Engineering from 1975 — 1980. Prof. Speh is the current Past President of the Power Engineering Society (ETG) within the Association for Electrical, Electronic & Information Technologies (VDE) of Germany. m i d dle ea st .busines s chief. co m

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TECHNOLOGY

CLICK TO WATCH : ‘DIGITAL SAUDI 2030 – DIGITAL LEADERS DISCUSS THE TRANSFORMATIVE POWER OF DIGITAL TECH’ 121 from oil and establish globally competi-

economic and social development of

tive industries in fields such as renew-

Saudi Arabia for nearly 100 years, with

able energy, manufacturing, healthcare

offices in Riyadh, Jeddah, Dammam,

and smart cities. Speh believes that

Al-Khobar, Yanbu and Jubail. With this

Siemens is playing a key role in this

local expertise combined with its

Vision. “As part of Vision 2030, the

innovative MindSphere platform, Speh

Kingdom aims to diversify and establish

believes the firm is set to take this

new industries. It’s not just about

one step further.

diversifying local industry; it’s about

Just as digitalisation has turned

becoming a major exporter too,” says

books into e-books and music into

Speh. “There is no way around this

mp3 files, it has also allowed us to

without Industrie 4.0. This is what the

create digital copies of physical

Kingdom hopes to achieve, and this is

industrial assets. Known as ‘digital

what Siemens can deliver.” Indeed,

twins’, many companies are looking

Siemens has contributed to the

to keep pace with Industrie 4.0 by

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SIEMENS

SIDF, MCIT, MAC Workshop 2018

122

creating a real-time replica of their assets. This can help firms identify defects or show how they could improve operations and drive revenue. “If you design a new operation you can simulate it and optimise it with the help of IT,� adds Speh, noting how Siemens not only has MindSphere to offer but that it is also a market leader in areas such as automation and product lifecycle management (PLM). With this range of industrial expertise and its cutting-edge MindSphere platform, Speh believes the opportuniAPRIL 2019

CLICK TO WATCH : ‘DIGITAL SAUDI 2030 – DR RAINER M SPEH KEYNOTE SPEECH ON THE RISE OF IOT IN SMART CITIES’ 123

ties for Saudi industry are limitless.

Take the energy market, for example.

According to Vision 2030, the country’s energy consumption will increase drastically by 2030. The National Renewable Energy Program aims to substantially increase the share of renewable energy in the total energy mix, targeting the generation of 27.3 GW of renewable energy by 2023 and 58.7 GW by 2030.

To meet this growing demand, Siemens offers a range of renewable energy solutions, from wind turbines to lithium ion battery storage. Additionally, Speh m i d dle ea st .busines s chief. co m

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highlights how the MindSphere IoT

blueprint for 2030. “The country

system monitors, analyses and optimises

also aims to have three Saudi cities

grids for grid operators and utilities.

recognised in the top-ranked 100 cities

“Vision 2030 is also about energy

in the world,” explains Speh. Saudi

efficiency, another area where Siemens

Arabia is already an urban nation with

has strong IoT capabilities,” Speh says.

82% of its citizens living in cities and so

“We can also offer digital and practical

it will have to tackle issues such as

solutions like more efficient electrical

transportation, energy use, air quality

motors. Additionally, whether you want

and more. Indeed, the UN forecasts

to remotely monitor your power plant,

that 70% of the world’s population will

chemical plant, food and beverage

be living in cities by 2050, so in order to

industry, you name it – this is where

have healthier, more liveable and

MindSphere can come into play.”

relaxed lives, those cities will have to

Renewable energy is just one of the main sectors found in the Kingdom’s APRIL 2019

become more efficient – and smarter.

Siemens is well-versed in Smart City

CLICK TO WATCH : ‘ANALYTICS ON MINDSPHERE’ 125 development and it believes that IoT,

Siemens has played a leading role in

and indeed MindSphere, could help to

the metro project, equipping two of the

transform urban life and infrastructure.

six lines with 67 Inspiro metro trains, an

“We are building air quality measure-

electrification system, and signaling

ment tools, but we’re also addressing

and communication equipment for fully

traffic jams and implementing variable

automated, driverless operation.

speed controls.” A transportation

Running on either public or private

system is the lifeblood of any city and

clouds, Speh also points to how the

it’s certainly been a key area of focus

Platform-as-a-Service (PaaS) is “easy

for Saudi Arabia. Riyadh has seen its

to deploy” and “less effort to maintain”

population double to more than

because of its cloud-based nature.

6 million inhabitants since 1990, and to

Nevertheless, at the MindSphere

address traffic congestion, it is working

Application Centre, it’s clear that it’s

on the world’s largest metro project

not about state-of-the-art technology

with a total route length of 175km.

as much as it is about state-of-the-art

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SIEMENS

COMPAN Y FAC TS

• Siemens has 20 MindSphere Application Centres spanning 17 countries.

• By 2030, Saudi Arabia aims to generate almost 60GW of renewable energy.

126

• By 2030, Saudi Arabia aims to have three cities recognised in the top-ranked 100 cities in the world.

thinking. Recognising that business leaders know their organisations’ blind spots, bottlenecks and headaches best, “collaboration” and “co-creation” are words that best encapsulate the

to co-design applications which aim

ethos behind the centre. “We sit down

to optimise processes, speed up

with clients and identify their pain

performance, maximise energy

points. They’re always different, and

efficiency and, ultimately, contribute to

there is always a potential to improve,”

Vision 2030. “It’s really about fostering

observes Speh. “Time-wise, effort-wise,

strong relationships,” adds Speh,

you name it – we’re offering change

“We have an ecosystem of around 200

management and helping them

companies now supporting us.”

become digital companies.” Through its centres, Siemens offers a space APRIL 2019

It seems that Vision 2030 has offered Saudi businesses a fresh slate to

World’s largest gas turbine First ‘Made in KSA’ at Siemens Dammam Energy Hub

reshape their operations and sharpen their digital capabilities. This has encouraged companies to embark

Riyadh Metro – the world’s largest metro project being executed

on digital transformation journeys, promote localisation, and nurture a more diversified economy. It’s an ambitious roadmap ahead, but with its MindSphere Application Centre, Siemens wants to co-create a better future with the Kingdom.

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127

128

APRIL 2019

AXA’s Move to the Cloud: a customer-driven technology transformation

WRIT TEN BY

OLIVIA MINNOCK PRODUCED BY

A LE X PAGE

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129

AXA

Ash Shah, AXA Group’s Global Program Director for the insurance giant’s Move to the Cloud, discusses the technology transformation as part of AXA’s ambition to become a customer-driven, tech-led organisation

“

W

hen we undertake a transformation, we do it on a truly global scale with technology at the forefront as one of the enablers,”

comments Ash Shah, Global Program Director of leading insurer AXA’s Move to the Cloud initiative.

130

This is no mean feat, with the insurer serving 105mn clients across a vast footprint of 62 countries. To aid its technology transformation, AXA has undergone a significant company-wide IT restructure. “We have an ambition to be an innovative, customer-driven, tech led company and we’ve enhanced and modified our IT organisation to support and drive that ambition,” Shah explains. “Technology has become more intrinsic in our business and it’s no longer just a support function – it’s the key enabler for us to continue to innovate and move forward as an organisation.”

‘INNOVATIVE, CUSTOMER DRIVEN, TECH LED’ As a composite insurer, AXA covers many lines of business including health, life, property and casualty insurance. The French multinational currently spans a mix of growth areas and established markets, APRIL 2019

131

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From Inspiration

to Innovation

CLICK TO WATCH : AXA GLOBAL PROGRAM DIRECTOR ASH SHAH ON TRANSFORMATION ACROSS GEOGRAPHIES 133

and has a significant legacy of looking

standing – all aimed at promoting

after customers at those times when

innovation and collaboration and

they need it most. Shah, who assumed

showing, through colourful posters

his current role just six months ago, is

and games areas, that insurance is far

already a familiar face in Paris where

from an old-fashioned career choice.

AXA is headquartered. Counted among

AXA’s staff are adapting well to

its numerous locations is the spectacu-

the new working environment which so

lar new Java building which offers a

much investment and thought has gone

true reflection of AXA’s ambition to

into. Colleagues do not have a strict

modernise a business often seen as

dress code – with some stating this

traditional. The office itself boasts

makes them feel more valued for their

open space, natural light, and flexible

skills and output than their appearance

options allowing colleagues to work

– and have plenty of opportunities to

independently or as a group, sitting or

socialise by playing pool or enjoying

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Building an ecosystem?

Connect the dots. “Your journey to cloud must navigate pitfalls and opportunities that are unique to your business. We support you in imagining and delivering your cloud journey and making it run�.

Eric Meistermann, Deloitte Partner in charge of AXA Group

“ We foster a strong change management process where we make sure we communicate, evangelise and onboard our colleagues in all parts of the organisation” — Ash Shah, Global Program Director – Move to the Cloud, AXA

coffee together. Shah joins us at this new

We measure compliance, performance

Paris office having spent three days with

and KPIs at both a centralised level and

AXA’s Dubai Gulf business discussing

a local entity and business level,” says

the company’s transformation across

Shah. “It’s also important to understand

that region. “It’s pushing all parts of our

the various cultures AXA operates in

organisation into that journey and bring-

and the pace and size at which they can

ing them onboard. It takes time and effort

make changes.” For example, AXA’s

and engagement – but once you do that,

companies in growth markets will focus

you can see the end results. We’re moni-

on establishing a presence while

toring, and can see we’re making good

well–established entities might focus

progress now,” he enthuses.

on innovation to remain competitive.

In its ambition to become tech led, sectors and geographies with both

A GLOBAL, CUSTOMER-CENTRIC TRANSFORMATION

a strong global vision and local knowl-

Currently, one of AXA’s key areas of

edge. “Usually, we have a central team

development – and the element for

but we listen to the requirements and

which Shah is responsible – is its ‘Move

needs of our different business units and

to the Cloud’, whereby the business will

make sure they are a part of that journey.

come away from legacy technology

AXA is pushing technology across all

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135

CLICK TO WATCH : GLOBAL PROGRAM DIRECTOR ASH SHAH TALKS THE IMPORTANCE OF PARTNERS AT AXA 137

and store and manage data on private

allows an organisation to innovate. “It

and public clouds. This is a key strategic

gives us business agility, flexibility and

initiative which AXA is taking on for two

speed to market which is much harder

key reasons. “One is that we want to

in traditional IT methods. In addition,

modernise and update our technology

the cloud enables the collaboration

infrastructure,” says Shah. “The second

that is so key to a global business. As

is that we really want to exploit new

we deploy something in one country,

technology innovation – such as artificial

we can replicate that quickly in multiple

intelligence (AI), chatbots and image

countries,” Shah explains. “We therefore

recognition – which we wouldn’t be

end up with a consistent product which

able to do with our existing systems

we can enhance and change – and those

and processes.”

changes can be rolled out across numer-

For Shah, and for AXA, a key feature of cloud technology is the speed at which it m i d dle ea st .busines s chief. co m

ous entities and organisations far more quickly than in the past.” a fri c a .busi ne ssc hief. com

AXA

“ The relationship we build with our suppliers – and I would call them partners rather than suppliers – is very important to us” — Ash Shah, Global Program Director – Move to the Cloud, AXA

138

Why is AXA undertaking such a significant investment? “Firstly, it’s for

to be able to respond to this change in a customer-centric manner.”

customer experience. We deal with

Every technology investment AXA

customers through an omnichannel

makes involves extensive thought into

process: they need to have consistent

how it will impact the customer. “We

experience.” For example, customers

make sure there’s really a business

may wish to deal with a claim over the

driver and value for what we’re investing

phone and then switch to live chat.

and innovating in. We then start with

“We need to be able to receive data and

a proof of concept, idea and trial before

respond to it in all manners, shapes and

we really push something.” AXA’s cloud

forms. Customers today are expecting

program is a prime example of this. “We

a different experience of working with

have to build new features, new products

a global insurer,” Shah adds, citing

and new ideas onto the platforms.

omnichannel as a key driver. “We need

There we have the voice of the customer

APRIL 2019

CLICK TO WATCH : GLOBAL PROGRAM DIRECTOR ASH SHAH – HOW AXA MOVED TO THE CLOUD 139

to drive the demand and the prioritisa-

“We foster a strong change management

tion process. Then their voice is heard.

process where we make sure we

They drive the change agenda.”

communicate, evangelise and onboard our colleagues in all parts of the organi-

A TEAM EFFORT

sation,” says Shah. “That’s one of our

With the agenda driven by customers, it’s

key success factors in implementing

important that each and every member

a lasting change.”

of AXA’s 160,000-strong colleague base

This is not always easy given that AXA

is on board in order to promote the best

is dealing with new technologies and

service to every customer. Managing

working across a plethora of different

a significant change, and the shift in

locations, but Shah maintains that it’s

culture it brings, across such a mam-

possible with a combination of training

moth organisation is vital to make things

and open communication. This is not

work all the way to the end customer.

just looked at in terms of individual jobs,

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AXA

but in terms of the key part each employee plays in AXA’s journey as a global organisation. The transformation so far has not just been successful in terms of IT, but far beyond this, including the people and culture at the company. “We have an extensive change training program for all of our colleagues where we’re working extensively to make sure they are all aware of what the cloud journey is, what AXA is undertaking, and why. It’s also important the program has the sponsorship of our management committee, and it is discussed and agreed – which then helps cascade the information and messages 140

around our program.”

AXA’s move to the cloud involves not just thousands of employees, but a network of strong partners too – and all must be aware of the company’s long-term vision. “We are not technical experts in all domains and areas we’re undertaking as part of our move to the

“ The cloud gives us business agility, flexibility and speed to market which is much harder in traditional IT methods” — Ash Shah, Global Program Director – Move to the Cloud, AXA APRIL 2019

141

cloud journey,” Shah admits. “So the

Other important delivery and consult-

relationship we build with our suppliers

ing partners include Capgemini and

– and I would call them partners rather

Deloitte who are also supporting AXA

than suppliers – is very important to

on this journey.

us.” AXA has worked with some of

Shah makes it very clear that AXA

the biggest names in tech as part of

isn’t just buying off-the-shelf solutions

maintaining a secure yet efficient cloud

but is growing alongside each of its

transformation – from IBM with its

key partners in a sustainable relation-

private cloud provider to AWS and

ship. “We’re undertaking a multiyear

Microsoft Azure for its public cloud

commitment. They’re on this journey

journey. Innovation projects have also

with us.” Another element the above

been supported by Google Cloud.

names have in common is famously

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AXA

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APRIL 2019

secure service – something which is paramount for any organisation, but especially within the insurance industry. “A few years ago, the reason people didn’t move to the cloud was security. Now, organisations are actually moving to the cloud due to the security provided by the likes of IBM and Microsoft Azure. They have some of the best security experts out there. Their business is built on secure, trustable platforms – they would be out of business if their platforms were not secure.”

Handling the kind of sensitive data AXA deals with on a daily basis means security is something Shah and his team don’t take lightly. “We need to ensure we have robust processes on our side. We are selective with what we put into the cloud, especially from a compliance and regulatory purpose.

Cybersecurity is one of the key drivers of this program,” Shah explains, adding that the global insurance behemoth has a strong legacy to maintain. “Our brand value is particularly important – when you’re buying insurance, you’re also buying a trusted brand.”

A FUTURE IN THE CLOUD Following AXA’s success on its journey to the cloud thus far, Shah believes that other organisations will follow suit – or risk being left in the dust. “Cloud technology is going to m i d dle ea st .busines s chief. co m

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AXA

AXA GROUP

€98.5bn Approximate revenue

1982 Year founded 166,000 Approximate 144

number of AXA employees

significantly disrupt the insurance

sations, such as AXA, concerned

sector, and the insurance value chain,”

about the rise of fintech and in-

he predicts. “Cloud technologies and

surtech startups – but Shah believes

Insuretech partners will look at

these shouldn’t be perceived as

different parts of the value chain and

a threat. “Parts of our value chain will

come up with innovative ideas about

continue to be disrupted by cloud

how they can accelerate a certain

partners, innovators or insurtech

process – such as claim notification or

companies who will come in with

risk modelling.”

solutions and ideas which don’t have

Across the finance and insurance

the resistance to change that larger

spheres, the rise of technology

organisations have to deal with,”

leaves many more traditional organi-

he comments.

APRIL 2019

gies through our AXA Next organisation.”

Along Shah’s journey to cloud transformation across the globe, the change will need to be continuously driven at all levels. “Hopefully we’re getting to a point where this communication and buy-in is becoming one of our key success factors. We measure that through KPIs. We’re at the point where we’re starting to become successful in promoting our program and moving forward with the migration– but we still have a long way to go.” Indeed, Shah cites the pace at which his team has accelerated buy-in across AXA. “In the last three of four months, we’ve seen more momentum than we saw in 15 months. That in itself is quite rewarding.

However, an insurer like AXA which

We’ve seen the adoption and deploy-

is prepared to innovate and stay at the

ment of lots of our applications on the

forefront of new technologies can

cloud. Momentum is building and it

only stand to benefit. “We need to

will just get better and better.”

embrace this as an organisation, look at our value chain, and see where we can utilise insurtech organisations to streamline, to be more efficient, more innovative, faster, and to deliver the change our customers are looking for.

We work with and invest in startups where we can leverage their technolom i d dle ea st .busines s chief. co m

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Digitising the viewing experience WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

CR AIG DANIEL S

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OSN

Orbit Showtime Network has undergone a significant digital transformation to cater to its diverse audience. Chief Digital Officer, Jacques Von Benecke, tells us more‌

T

he MENA region is quickly becoming recognised as one of the world’s largest TV markets. Impacted by

ongoing demands across GCC countries, the transition towards digital broadcasting is creating new opportunities on a global scale.

148

Owned and operated by Panther Media Group and registered in the Dubai International Financial Centre (DIFC), Orbit Showtime Network (OSN) has more than 150 channels, as well as exclusive and on-demand content on offer.

OSN is at the forefront of digital innovation, where it has remained steadfast in cementing its position as a leader in the delivery of premium, world class content. Leading its digital shift is Chief Digital Officer, Jacques von Benecke, who has sought to embrace new technologies, implement new initiatives to reflect local demands, and develop longterm partnerships with major studio trailblazers such as Disney, HBO, NBC Universal, Fox, Paramount, MGM, Sony, DreamWorks APRIL 2019

149

and more. “The culture change that we have to go through is quite dramatic.

We haven’t won that battle yet, but we’re getting there a little at a time,” he says. Taking the business on its digital transformation journey, von Benecke is passionate about driving enormous change across the industry.

“Broadcasting is generally a very slow changing market which doesn’t like adopting new technologies, but the opportunity to change is really big,” he reveals. Upon being appointed in June 2017 to lead innovation initiatives and m i d dle ea st .busines s chief. co m

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Jibility

/dʒɪˈbɪlɪti/ noun

Possession of the skill and tool to plan and map out

Stop chasing the wrong things.

Start your free trial

Business and technology strategy roadmaps made simple.

J IBILIT Y

www.jibility.com

The tool supporting digital transformation for some of the world’s largest companies Executing digital transformation is a complex and difficult undertaking. Success lies in your ability to translate a digital vision into a plan that focuses on the right things at the right time and is easily adaptable to change.

Most organizations have a digital vision but struggle to turn it into an executable plan. They don’t know where to start, and then end up focusing on the wrong things or trying to do too much.

A digital transformation strategy roadmap is like a

J IB IL IT Y

“

The difference between mediocrity and raging success for many organizations is not down to a flawed strategy. It’s down to their ability to translate that strategy into action and then execute it.

bridge between your digital vision and implementation plan. Developing a strategy roadmap can be challenging. Some will engage external consultants to do it for them, but this can be costly. The insights then

”

leave with the consultants and what remains is tricky to maintain given the pace of digital change.

Forward-thinking companies like OSN are using a dedicated tool called Jibility to develop a substantiated digital transformation strategy roadmap that can be rapidly adapted to address changes.

Jibility is a SaaS product that encapsulates the knowledge and experience of world-class consultants in a simple six-step method with pre-defined building blocks for creating your strategy roadmaps. It allows you to truly own your roadmap and – ultimately – the successful execution of your digital vision.

Find out more about how you can use Jibility to build your digital transformation strategy roadmap Visit www.jibility.com or contact us at sales@jibility.com to request a demo.

OSN

“ It’s balancing how careful we have to be about what we broadcast. It’s the complexity of the challenge that really excites me” — Jacques Von Benecke, Chief Digital Officer, OSN

set up an overall innovation function, the first thing von Benecke sought to implement was a cloud strategy and an essential enterprise architecture.

While he admits that the business was originally reluctant to broadcast content in the cloud, as well as automating a number of internal processes, his past experience working with JourneyOne to develop effective digital transformation tool, Jibility, enabled von Benecke to utilise its methodology and onboard new technical capabilities.

152

APRIL 2019

CLICK TO WATCH : ‘COMEDY CENTRAL – OSN’ 153 “Digital transformation is not just about

enables me to have a new business

the technology and the process that

model within hours. Jibility strategy

you change, but also about changing

roadmaps is a highly visual bridge

the organisational culture. Jibility is

between our strategy vision and

a simple tool for developing a business

implementation plan that I often use

or digital strategy roadmap in a quarter

to get consensus on new costs and

of the time. The tool helped me to

the timeline – it’s just fantastic.”

effectively model our digital transformation,” he explains. “As we move

CLOUD ENABLED

along our business transforma-

Switching from on premise platform

tion things change, and normally

fashioned in-house to relocating its

changing plans can be a real

platforms in the cloud, OSN has bought

problem. Jibility’s six step process

increased responsiveness across all

and reuse library makes capabili-

its business functions. Its recent part-

ty-based planning easy, and

nership with SnapLogic will also

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OSN

“ Digital transformation is not just about the technology and the process that you change, but also about changing the organisational culture” 154

— Jacques Von Benecke, Chief Digital Officer, OSN

ensure its hybrid cloud architecture is

unloyal because within two clicks they

maintained and data can remain avail-

can sign up to Netflix or Amazon. Satellite

able, while seeing the business gain

customers are loyal because it’s a pain

increased agility in responding to evo-

to change your satellite subscription,”

lving customer requirements. “If we

adds von Benecke. Gaining an acute

give customers a dire experience they

awareness of customer behaviour, age

walk away. This is the big difference

groups, and the way customers consume

between satellite customers and digital

content, OSN has sought to fully trans-

customers. Digital customers are very

form the customer experience. New

APRIL 2019

digital tools whichwill deliver increased

ers want everything now, on every

reliability, scalability and improve

device, for free. Here, we struggle with

performance across its channels, which

internet adoption and digital payments.

will filter into its aim to deliver value-

Credit cards and debit cards are not

added services at every stage. “Under-

widely used in theMiddle East where

lying technology platforms are getting

cash is still king, and people assume

more stable by moving into the cloud.

everything’s paid by credit card. It’s all

We are now focusing on how we can

about balancing that with how careful

change consumer habits and the

we have to be about what we broadcast.

customer experience when they interact

It’s the complexity of the challenge that

with our content,” he explains. “Custom-

excites me.”

EXECUTIVE PROFILE

Jacques von Benecke As Chief Digital Officer at OSN, Jacques von Benecke is the driving force behind the digital transformation agenda in the IT, Innovation, Broadcast and Business Intelligence teams at the MENA region’s leading entertainment network. Since joining OSN in 2017, von Benecke’s key objective has been adding a world– class OTT capability to OSN’s premium suite of products and services. He has been responsible for implementing OSN’s cloud strategy — moving OSN’s digital products to the cloud to ensure the broadcaster has the scalability, reliability and performance required for not only the digital future, but also to fight against piracy and to adopt dual CDN and ABR streaming that will take customer experiences in the Middle East to new levels. von Benecke is a specialist in innovation and automation, introducing blockchain, IoT and machine learning to the organisation as a part of the current digital transformation at OSN. m i d dle ea st .busines s chief. co m

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Heavily reliant on local telco infra-

where they are only starting to allow

structures across the Middle East,

cinemas back into the country. They

emerging markets such as Egypt and

have concerns regarding the type of

Jordan as well as North African emerg-

entertainment people can access, so

ing markets like Algeria and Morocco

proactively monitor this the entire time.”

present ongoing challenges, with 2G

However, such a diverse customer

networks still in operation. “Dubai, for

base has no doubt presented significant

example, is significantly advanced,

challenges, leading OSN to look towards

but in Saudi Arabia it is a very different

technology to not only drive increased

story – and the two are neighbours.

efficiencies and enable further cost

A large part of the region tries to copy

savings, but also to support its efforts

Dubai, but it depends on how wealthy

to remove content which would not

the country is and how conservative

meet the standard of each country.

the culture is,” observes von Benecke.

Partnering with Amazon, the business

“Saudi Arabia is by far the strictest,

has utilised machine learning to develop

APRIL 2019

Alexa Language Helper, which uses

tread,” he says. “By building a platform

natural language processing to

with the use of Google Machine Learning

recognise voice, turn it into text and

and GreyMata, we are doing some

enables the removal of content such as

really interesting things.”

nudity, as well as conversational topics which would prove undesirable.

AT CUSTOMERS’ FINGERTIPS

“We’re also working with GreyMeta

Overhauling both its front and back-end

regarding a product that can view our

capabilities, the introduction of a private

content and screen it for all the legal

blockchain has seen OSN utilise smart

compliance that we have to look out for.

contract technology with local content

There are a lot of complexities around

providers, enabling customers to go

what is acceptable content in each

online, register to become a content pro-

country. Some of it is legal, some of it

vider and create a smart contract on

is cultural, some of it is religious, and

Ethereum blockchain. Customers can

so it’s a very fine line that we have to

then submit content, while OSN will

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OSN

158

curate and scan it to ensure it is acce-

gain access to our editing suite and

ptable to distribute. “As people consume

more. We can use blockchain as

it, we essentially write records into this

a barter system.”

immutable ledger, and as the provider

Looking to advance this further, OSN

of the content, customers can see

will look to develop this as a basis for

who’s viewed the content, the time it

a rewards system. If customers buy

was viewed, how long for and on what

a family subscription, for example, a blo-

device,” states von Benecke.

ckchain will be created for the whole

“By developing our own cryptocurren-

family, providing trust and increased

cy to support this, we have disconnect-

security with regards to customer data.

ed it from a legal monetisation value,

It will also work to provide increased

which allows us certain flexibility with

transparency with partners, such as

short form content. Every time some-

Disney and HBO.

body watches, we’ll provide one coin,

“Every time somebody views our con-

whereas if long form content is provid-

tent or we air it on a live channel, we

ed, such as a movie, this is far more

have to record how many people are

valuable and we’ll maybe give custom-

viewing it to pay our licensing fees. If

ers 100 coins. This can be turned into

we use a blockchain, that data is imme-

money or credit to upgrade services,

diately there. Studios can look at the

APRIL 2019

2009

Year founded

1,000+

Approximate number of employees

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OSN

C O M PA N Y FACT S

• OSN partnered with JourneyOne to utilise digital transformation tool, Jibility, taking the business on its transformation journey • Heavily reliant on local telco infrastructures across the Middle East, emerging markets such as Egypt and Jordan as well as North African emerging markets present ongoing challenges 160

• Von Benecke has spearheaded OSN’s ambitions to overhaul outdated ways of working and promote cross collaboration

APRIL 2019

ledger and know where we are, so at the end of the year there’s none of this forwards and backwards negotiation about licensing numbers.”

As the industry increasingly moves away from satellite, the company is looking to TVKey from Nagra. Replacing traditional satellite boxes with a USB stick, it will cater to the growing demand for digital streaming services.

“Rather than having to battle with two or three remotes, we’ll just take over your TV and say, ‘here’s the OSN service in your TV’ or ‘here’s the Netflix content in your TV,’ and you can drive it all with one remote, or by voice, as new TVs are going to be voice activated,” adds von Benecke.

With a plethora of digital tools on the market, access to visual content anytime, anywhere, continues to fuel the need for products and services which are not only secure and robust, but increasingly diverse. Partnering with transcoding leader Bitmovin has afforded OSN the ability to make its services accessible via tablets, iPads and more, without losing any form of quality across its digital applications.

“Bitmovin take our movies, undertake all of the encoding and condense files to be as small as possible without losing quality, so it can stream even on a low internet speeds. In this region, we struggle so much with internet and mobile connection, and Bitmovin have m i d dle ea st .busines s chief. co m

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OSN

the best technology and use machine learning to find the best compression ratio. They look at each frame. If it changes a little, they apply a much higher compression ratio, and if things change a lot, they would compress that frame only a little. With this variable compression they maximise the reduction in file size, without reducing any of the quality,” he explains.

For sports content in particular, use of augmented and virtual reality technology (AR and VR) is also picking up speed at OSN. Working alongside 162

Microsoft with HoloLens to look at adopting similar tools within its sales channels, customers can experience the differences between high definition content and standard quality content.

“The platform is basically three screens which reflect the different qualities of content we have available. You can also access augmented reality through the platform, where we would see sports people that are in the match and the recent statistics for those sports people: how many wins, how many loses, etc.

It’s probably going to become much more of a reality next year, where we will work with companies that have 360-degree videos to allow customers APRIL 2019

to change the angle of what they’re viewing. Following on from things like Netflix’s Bandersnatch, where you can change the path of the movie to different endings, and thus deliver a complete personalised experience, it’s a very exciting time.”

By exploring new innovations to transform the digital experience, von Benecke has also spearheaded OSN’s ambitions to overhaul outdated ways of working and promote cross collaboration across the business. Responsible for facilities management and building management, OSN’s working spaces have been redesigned, with ‘tribes’ of people with similar skills or complementary skills bought together to drive each area of the business, leading to a number of advantages.

CONTENT VARIETY OSN remains renowned for its diverse content, its focus on the customer and its strong partnerships with leading studios. However, although it has advanced significantly by bringing experts on board to support its modernisation, the introduction of Saudisation has presented several challenges. Moving away from westernised content, the company m i d dle ea st .busines s chief. co m

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OSN

has turned its attentions towards lau-

the first (and only) company in the world

nching more Turkish and Arabic

to put the Netflix application on our sat-

content, as well as new genres and

ellite boxe – you could argue that in itself

content for women and children to

is a very big digital transformation.”

become increasingly inclusive and

Looking towards the future, OSN

cater to the needs of local citizens.

would like to personalise and localise its

“From a technology point of view,

164

recommendations to our customers.

with the adoption of 4G and 5G we are

Turning towards innovative startups

going to have a customer base that is

such as Covatic, who are “doing amazing

going to shift increasingly into digital.

things” will see the business gain the

Investing in the cloud and building new

ability to run machine learning algorithms

platforms will help us navigate this,”

on mobile devices to deliver the next

adds von Benecke. “If something inno-

level of information regarding how cust-

vative is coming out, we want to remain

omers interact with OSN’s content and

at the forefront. We have new partner-

its digital platforms while on the move.

ships with Discovery and Netflix, we’re

“Integrating this information with what

APRIL 2019

“ Jibility is a simple tool for developing a business or digital strategy roadmap in a quarter of the time” — Jacques Von Benecke, Chief Digital Officer, OSN

165

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OSN

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“ Following Netflix’s Bandersnatch where you can deliver a complete personalised experience, it’s a very exciting time” — Jacques Von Benecke, Chief Digital Officer, OSN

APRIL 2019

customers like to watch while they are traveling between meetings or on their daily commute, we can make sure users don’t waste their precious time searching for videos to watch, we will have them pre-downloaded and ready for you,” explains von Benecke.

“We’re not afraid to compete with Netflix.

Netflix may have all the Netflix originals, but we have live, linear channels. We have real TV on our TV platforms, not just video. We cater for a much wider age range. There are a lot of people who prefer to watch the news on their particular news channel and watch it at a very specific time, rather than watch video content.

I would say that the company would like to go down that direction where we address a wider audience and provide an increasingly digital focus.

“We can now start focusing on the customer experience, on the technology and on the content. We are changing from relying on sport and western content to having a completely different content focus.

Although customers haven’t seen it, these changes have gone on and they are really going to feel the difference.”

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OLD MUTUAL INSURE SUSTAINABLE DIGITAL TRANSFORMATION IN AN EVOLVING MARKET WRIT TEN BY

M ARCUS L AWRENCE PRODUCED BY

M A LVERN K ANDEM WA

APRIL 2019

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OLD MUTUAL INSURE

170

Ashley Singh, Head of IT at Old Mutual Insure, discusses the company’s sustainable digital transformation journey in the South African market

O

ld Mutual Insure, a subsidiary of the historic Old Mutual financial services company,

is currently in the midst of an exciting period of digital transformation.

The company has been in operation for over 180 years, recently rebranding from Mutual and Federal to Old Mutual Insure, making it the oldest insurance firm in South Africa. Over that time, Old Mutual Insure has developed a laudable reputation for customer centricity and service quality which

APRIL 2019

171

are values that form the foundations

“Digital transformation is here, and

of its digital transformation journey.

as companies we need to get on board

Ashley Singh, Head of IT at Old

with it sooner rather than later,” says

Mutual Insure, spoke with Business

Singh. “It’s important to embed that

Chief about the company’s digital

in local optimisation, and we must ask

transformation journey thus far, and the

what is fit for purpose for the company,

focus on establishing lean operations

the country and the continent.” Singh

that maximise efficiency and improve

continues: “What we want to implement

the customer experience. Singh also

is a very light digital infrastructure;

highlights the process that takes the

one that enables us to be quite nimble,

local economy and digital infrastructure

yet also flexible enough for customers

into account at every stage, ensuring

and industry businesses to do business

a responsible and sustainable approach.

with us. We try to be very light from

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OLD MUTUAL INSURE

“ Erum ut ulpa volorerios alibus “ E verything repudae autthat we do asincipsum a business is quam quam dolupta focused on enabling non pa seq uatest, a smoother and faster nectate customer journey” minullandiae con — sit volorpo es Ashley Singh, risquid Head of IT at Old Ma Mutual Insure autatiumqui illoreni cus aut” 172

— Name of Person, Position and company

APRIL 2019

CLICK TO WATCH : ‘MUTUAL & FEDERAL PROUDLY BECOMES OLD MUTUAL INSURE’ 173 a digital structural footprint perspective

as operational costs are brought down.

to enable nimbleness when engaging

“Everything we do as a business

with our customer and business partners.”

is focused on enabling a smoother

Singh identifies speed to market as one of the biggest drivers behind

and faster customer journey.”

A significant part of establishing

the industry-wide transition to digital

the digital-driven approach to improving

processes, meeting the expectations

the customer experience is in the

of consumers who appreciate the

establishment of a modern operational

immediacy with which they can leverage

culture. Prior to becoming Head of IT,

new products, services, and solutions

Singh served Old Mutual Insure

that is afforded by disruptive technologies.

as the Head of Development and

“The second most significant factor

was instrumental in introducing Agile

is reducing costs where possible,”

methodologies to the organisation,

Singh says, and indeed leaner opera-

laying the foundations for a measured

tions ultimately benefit the customer

and precise digital transformation

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OLD MUTUAL INSURE

strategy. “A lot of what the work as

capability back into the arm, as well

Head of Development entailed was

as digital delivery, which was missing

in setting up processes, establishing

beforehand.” The advent of Old Mutual

Agile within the organisation.” Singh’s

Insure’s modernised operations,

influence has continued from there,

particularly with Agile and DevOps

with a pivotal role across myriad stages

methodologies in play, have been

of the journey. “I thereafter became

particularly impactful to the time

the Head of Solution Delivery, estab-

to market of the company’s products,

lishing the firm’s business analysis

services, and solutions, as well as the

processes, the systems analysis, the

establishment of digital technologies

testing capability and the integration

at the firm.

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“ What we want to implement is a very light digital infrastructure, one that enables us to be quite nimble” — Ashley Singh, Head of IT at Old Mutual Insure

APRIL 2019

Looking forward, Old Mutual Insure

handled responsibly and securely.

is maintaining its measured approach

The level of care applied to cybersecurity

to adoption of disruptive technologies

practices extends to every consideration

whilst assessing the benefits and

of disruptive technologies, particularly

suitability of a wide range of exciting

in terms of corporate responsibility

new options. Cybersecurity is naturally

and awareness of the appropriacy

at the forefront of considerations

of installing particular solutions and

for any firm handling sensitive data,

innovative ideas within the context

and Old Mutual Insure has established

of South African infrastructure.

a potent array of security-focused solutions to ensure such data is

“Another major trend is the Internet of Things,� Singh notes. “With regards

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APRIL 2019

HQ

Johannesburg, South Africa

1831

Year founded

2010

Became wholly-owned subsidiary of the Old Mutual Group

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OLD MUTUAL INSURE

Marsh is proud to be a core partner of Old Mutual Insurance across Africa

MARSH AFRICA www.marsh.com | +27 11 060 7100 An authorised financial services provider | FSP: 8414

APRIL 2019

“ As much as IoT is growing and blowing up overseas and in Europe, we have to manage that with a level of caution in South Africa”

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— Ashley Singh, Head of IT at Old Mutual Insure

to the Internet of Things, as much

still have an environment where there

as it’s growing and blowing up over-

is limited signal. There are portions

seas and in Europe, we have to manage

of the country that do not have data

that with a level of caution in South

coverage. That is a big consideration.”

Africa. The reason being is that the

This challenge consequentially impacts

cost of data is quite high. As much

the immediate viability of introducing

as the Internet of Things can enable

artificial intelligence and machine

many new offerings that take the

learning software that rely on a strong

business forward, we have to find

data backbone to operate effectively.

suitability for people in South Africa

Old Mutual Insure is nonetheless

and the African continent because of

working to find a solution to this

the cost of data and the fact that we

challenge, leveraging the streamlining

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“ In rebranding from Mutual and Federal to Old Mutual Insure, we have created much more synergy with the larger group” — Ashley Singh, Head of IT at Old Mutual Insure

capabilities that such technologies offer to drive efficiency and positively 180

impact the consumer experience.

This focus on sustainable operations is at the heart of Old Mutual Insure’s digital transformation journey, and Singh ensures his finger remains firmly on the pulse with the latest sustainability trends and practices of business leaders around the world. “To remain sustainable, we keep our ear to the ground in terms of what the leaders are doing, what Gartner and other research authorities mention that is moving companies towards the Magic Quadrants. We study what’s taking place abroad, and marry that with local relevance before coming up with a solution that’s fit for purpose,” APRIL 2019

Singh adds: “Anything that we implement, be it an application or actual infrastructure, we ensure that it’s fit for the business purpose. We tie it back to solid business, or solid investment that maximises return on the investment.”

Old Mutual Insure is certainly well positioned to continually capitalise on the benefits that disruptive technologies bring, and its modern, sustainable approach offers a model for success achieved in the right way. “I think Old Mutual Insure is on an exciting journey,” Singh says. “In rebranding from Mutual and Federal to Old Mutual Insure, we have created much more synergy with the larger Group, and it also helps us reposition for success. From an IT perspective, we are looking at our entire application staff in terms of what legacy applications we have. How can we modernise operations? We’re looking closely at each of our processes, and I think that in the end the business will have a significantly more competitive advantage in the market.”

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Alizz Islamic Bank’s dynamic approach to digital risk

182

WRIT TEN BY

HARRY MENE AR PRODUCED BY

MOHA MMED HASHEM

APRIL 2019

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Venkatesh Kallur, Chief Risk Officer at Alizz Islamic Bank, talks digital risks and opportunities, Islamic finance, and managing change in an evolving world

W

ith over three-and-a-half decades of banking experience across three continents, six countries and in multiple

languages, Venkatesh Kallur, Chief Risk Officer (CRO) at Alizz Islamic Bank has seen the nature of the industry transformed by the rise of digital 184

banking. “I still recall back in the mid-90s in Toronto, when I had to transfer $1,000 from Canada to my parents in India. It used to take about 15 days and I had to follow up with my bank at least half a dozen times,” Kallur remembers. “Today, I sit in my bedroom, open my tablet or smartphone, trigger a transaction and tomorrow morning the money is in an account on the other side of the world.”

Kallur has watched the advent of online and mobile banking revolutionise financial exchange on a global scale, but at the same time he has borne witness to the proliferation of new challenges and digital risks. From North American financial institutions like American Express and the Bank of Montreal, Kallur has moved to the world of Islamic banking, arriving at Alizz Islamic Bank in August 2017. “One of my biggest strengths has been my APRIL 2019

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186

ability to adapt to new cultures, new

Islamic finance and the ways in which

languages and new environments,” he

institutions like Alizz Islamic Bank can

explains. “All along I’ve tried to keep an

manage change in an ever-changing

open mind and focused on how best to

world.

collaborate with different people.” This

Founded in 2013, the Alizz Islamic

adaptability has served Kallur well

Bank provides Islamic banking

throughout a career in an industry that

services in the Sultanate of Oman. In

has moved from bricks, mortar and

contrast to traditional banking, Islamic

paper records to mobile banking, data

finance – in accordance with Sharia

analytics and the cloud in a few short

law – prohibits the charging of interest,

decades. We sit down with Kallur to

also forbidding loans to a business or

explore the threats and opportunities

customer operating in violation of

across the changing face of banking,

Sharia law (for example, businesses

the nature of risk management in

selling alcohol). Instead of collecting

APRIL 2019

CLICK TO WATCH : ‘THE NEW INTERNET BANKING PLATFORM FROM ALIZZ ISLAMIC BANK’ 187

interest, Islamic lenders generate

Islamic bank, there’s the risk of Sharia

revenue from a portion of the custom-

non-compliance. If a product or a

er’s profits while also sharing in any

contract we commit to is not Sharia

losses. “The principal means of Islamic

compliant, then that whole source of

finance are based on trading, and it is

income is quarantined.” In addition to

essential that risk be involved in any

adapting to a new form of banking,

mercantile activity, so banks and

Kallur is constantly working to identify

financial institutions will trade in

and assess the risks that advances in

Sharia-compliant investments with the

digital banking may pose to Alizz.

money deposited by customers,

“With the evolution of technology,

sharing the risks and the profits

CROs are faced with increasingly

between them,” explains Kallur, who

dynamic challenges. Risk management

notes that Islamic Banking therefore

functions will have to reinvent them-

has to be more risk averse. “In an

selves and become enablers and

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ALIZZ ISLAMIC BANK

drivers of digital transformation. How banks navigate the risks and opportunities presented by technological innovations will dictate their ability to thrive,” says Kallur. He continues, noting that emerging digital risks also go hand-in-hand with increased competition: “Broader geopolitical, social and environmental concerns are looming larger, as regulatory fragmentation continues and competition intensifies. Fintechs and major technology companies seek traction in profitable parts of financial services, while banks’ strategic options to deliver

188

11% to 15% return on investment narrow.” He also notes that cybersecurity – protecting information as well as capital – has become top of mind for banks, due the ‘phenomenally’ increased risk created by increased digitization of operations and records.

“In the ‘good old days’ we used to take a big black book, sit down and make various entries. You can’t hack into that.

Now, in addition to other operational risks, information and cybersecurity risks have emerged into their own threat category.” In order to maintain security, Alizz utilises the ‘three lines of defence’ model: business units, APRIL 2019

“ One of my biggest strengths has been my ability to adapt to new cultures, new languages and new environments” — Venkatesh Kallur CRO, Alizz Islamic Bank

referring to “relationship managers who are managing the risks with their customers”; risk management, Kallur’s purview, which involves harnessing behavioral, predictive and scenariobased analytics; and internal audits, which ensure compliance frameworks and internal controls are appropriate.

One emerging technology occupying a great deal of conversational real estate in the banking space is the adoption of cryptocurrencies and blockchain technology. Kallur acknowledges that “cryptocurrencies can help 189

E XE CU T I VE PRO FI LE

Venkatesh Kallur Venkatesh is a Senior Risk Management executive and international banker spanning over three decades of experience from three continents and in several regulatory regimes. Seasoned enterprise risk management executive with strong foothold in Credit, Market, Information Security and Operational Risk along with Enterprise Risk Management & Risk Architecture. Keynote Speaker and a vivid writer on various Risk subject areas in International Risk Forums, a “C-Suite” leadership coach and mentor with accomplished experience across Banking, and Financial Services. Brings to the table a high degree of emotional maturity and business intelligence.

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“ With the evolution of technology, CROs are faced with more dynamic challenges”

movers – need to be protected.”

While CROs like Kallur have less than bullish attitudes to emergent technologies like blockchain, he maintains that the adoption of technology to better process data is at the heart of Alizz Bank’s digital transformation strategy.

“With respect to banking in the Middle East, whichever bank that you look at in the region has data quality issues. To me, data is information, information is power, and that’s where we should be

— Venkatesh Kallur CRO, Alizz Islamic Bank

focusing.” Since starting at Alizz, Kallur

multinational banks transfer money

Underwriting Strategies through Risk

instead of moving the physical tender”.

Appetite Framework and Target

However, he maintains the skepticism

Market and Risk Acceptance criteria,

of a risk-assessment veteran. “Crypto-

along with required analytics, which

currencies might give a little bit of

provide a 360-degree view of risks at

operational ease, but they come with

enterprise level, as well as mapping the

their own risks. At this point in time, for

skillset, bandwidth and the needs of

example, cryptos are intangible, illiquid

the company through a monthly CRO

and, to a large extent, uninsured. That

dashboard.”

can lead to extortion and manipulation,”

has brought in several enhancements in Policy Framework and Credit

Looking to the future, Kallur says:

Kallur says, “Don’t get me wrong, I

“Information technology, information

understand the potential, but there is

security and digital banking – be it on

more to do before it can be universal-

mobile phones, computers or tablets

ised. It needs to be adoptable, depend-

– all need to be considered.” He agrees

able; regular investors –not just the fast

that the introduction of new technolo-

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ALIZZ ISLAMIC BANK

“ To me, data is information, information is power, and that’s where we should be focusing” 192

— Venkatesh Kallur CRO, Alizz Islamic Bank

APRIL 2019

$1.47bn Approximate revenue

2012

Year founded

300

Approximate number of employees 193

gies to any sector results in a shift in

overlap, single-change processes are

the culture of the organisation, but

interrupted, modified or restarted

maintains that Alizz is more than

and the organisation thus finds itself in

equipped to manage change. “Neither

a continuous process of change, if not

change management nor digitalisation

handled right, thus causing a potential

are new phenomena,” he says.

operational risk.” Kallur concludes by

“However, the variety of technical

noting that, Digital banking is the future.

changes, possibilities and innovations

Risk officers have to be prepared. We

is new, as well as demand for extremely

don’t take blind risks, but calculated

high implementation speed and

ones with a business collaborative

their extensive spillover effects for the

approach (risk vs. reward). That’s the

entire organisation.

nature of my role.”

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The Value of Environmental, Social & Governance We sit down with Vhahangwele (Hangwi) Manavhela, Environment, Social & Governance Manager at South Africa’s largest asset management company PIC, to discuss sustainability, transparency, diversity and equality in a changing world.

WRIT TEN BY

HARRY MENE AR

APRIL 2019

PRODUCED BY

S TUART IRVING

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V

hahangwele Manavhela, also known as Hangwi, joined South Africa’s Public Investment Corporation (PIC) in 2014

in the role of Environmental, Social & Governance specialist for Unlisted Investment, later becoming ESG Manager. She received her Master’s Degree in Sociology from the University of Johannesburg and, prior to taking up the mantle of ESG Manager at Public Investment Corporation, worked at Tshikululu Social Investments.

“Working at the social investment company was the foundation of what later became my ESG role.

That’s how my journey began, with a very strong passion around social issues,” she explains.

196

We sat down with Manavhela to find out how she has been tackling the tri-fold challenges of ESG management at South Africa’s largest asset management organisation with over US$150bn under management, and what she sees as the way forward for South Africa as a whole.

The role of an ESG officer focuses on three key areas: Environmental, which tackles how a company approaches its relationship with the natural world; Social, an expression of the way a company manages its relationships with suppliers, employees, customers and the communities whose lives it touches; and Governance, which deals with the internal controls of a business, including audits, executive remuneration, corruption and leadership diversity and equality. “My role was to kickstart APRIL 2019

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“ You need to encourage companies to adopt the strategies where they can get those quick wins, and then turn those into long term strategies” — Vhahangwele Manavhela, Environment, Social & Governance Manager, PIC

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APRIL 2019

the ESG, to develop policies, develop systems and make sure those practices were fully integrated within the investment process. Obviously I started from a social perspective, and then learned more about the governance and environmental aspects as I went,” she explains.

“Once you start working on all of them, you start to see how integrated they are and together they drive the company towards sustainability.”

Although her educational background lies in the social aspect of the ESG role, Manavhela emphasises the governance aspect of the ESG role as a starting point for effecting positive change within the social and environmental elements. “For me, governance is the lens. Once there is good governance within the company it becomes much easier to approach, say, the environmental and social aspects.” She admits that the challenge at the heart of applying ESG within a company is measuring the impact in line with financial performance.

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incurred by not having an effective

“When you see that the people within

ESG strategy that includes managing

the company have got a sense of

the interest of their employees.

ownership, that is what gives me

The company could be collapsing

satisfaction. I see people starting

because of poor governance, corruption

to enjoy the benefits of some-

or fraud, and only once it is collapsing

thing that they have never

will a lot of companies be able to see

experienced, and that is

those financial losses.”

where I take much pride

Manavhela stresses that, for her,

in the transformation of

the core of success, and where returns

South Africa. Previously in

and victories are most obvious, is the

South Africa,” she explains,

space where governance strategies

“companies were owned by

have positive social impact. “I’m

whites, but now we are working

passionate about people, valued as

towards a point where the ownership

human capital,” she declares.

is shared. There’s also new money

APRIL 2019

SECTOR

201

“My role was to kick start the ESG, develop policies and systems, and make sure those practices were fully integrated within the investment process” — Vhahangwele Manavhela, Environment, Social & Governance Manager, PIC

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APRIL 2019

$150bn Assets under management

1911

Year founded

372

Approximate number of employees 203

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BIO

204

Vhahangwele Manavhela leads a team that is responsible for due diligence, compliance, and engagement with key stakeholders on environmental, social and governance (ESG) issues within the Public Investment Corporation (PIC). PIC is wholly owned by South African government and is the largest asset manager in Africa.

Hangwi’s role evaluates potential investments for their performance prior to acquisition and also works with companies in PIC’s existing portfolio to strengthen their performance and ability to measure progress towards ESG benchmarks.

Professional Highlights • ESG Manager, Public Investment Corporation, 2014 – Present • Advisory Committee Member, UN Principles of Responsible Investing (UNPRI), 2016 – 2020 • Director & Volunteer, Samson and Naledzani Foundation, 2016 – present • Social Development Specialist, Tshikululu Social Investment 2010-2014 • Programme Manager, Care International 2004-2009 • Social Impact Assessor, Nsovo

APRIL 2019

Environmental Consultants, (Part time) Education & Professional Affiliations • M.S., Sociology (Social Impact Assessment ), University of Johannesburg, 2014 • B.A. Honours in Psychology, University of Venda, 2003 • B.A., Psychology, University of the North (Limpopo), 1995 Fellowship Interests In April to May 2018 Hangwi was part of the Eisenhower Global fellowship Programme in the United State of America. The focus of her fellowship was as follows.

• Examine frameworks for measuring the impact of ESG activities • Explore ways to make ESG integration a part of companies’ fiduciary duties • Study university-level programs around for ESG valuation and integration; develop partnerships to bring similar programs to South Africa • Explore means by which investors can drive economic sustainability in rural areas

and old money. There are very few black people in South Africa with old money. As we put our ESG policies into practice, we’ve seen a greater pool of investment opportunities arise amongst people with new money.

And that means you’re investing in people of colour and women too.”

Manavhela also emphasises the need for consumer education, twinned with added transparency on behalf of companies in order to improve and encourage sustainable practices.

“We still need a lot of education on the consumer side to understand ESG issues,” she says. “Customers can’t just look at the financial value of a product; they also need to look at the sustainability aspects. When a product is cheaper, ask yourself, why is it cheaper than the company next door? Maybe a lot of people have been exploited to make it cheaper, she continues. “Transparency is something we need to move towards.

We need to get to a point where companies disclose employee remuneration, minimum wage within the company and so on. If we move towards a point where we disclose those things, then maybe the consumer will be more aware and more alert, in terms of m i d dle ea st .busines s chief. co m

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P U B L I C I N V E S T M E N T C O R P O R AT I O N

making a choice of where they should buy and who they should support.”

The environmental pillar of her role is, Manavhela explains, currently tied to the concept of risk management, compliance with legislation and applying best practice principles.

“South Africa is a water-scarce country.

There is no way you can look at the risk management of a company and then not be forced to identify environment as one of those risks.” Environmental regulations become part of compliance and then, she explains, “you start 206

realising that there are other things that can help me save money, like resource efficiency”. Transitioning from compliance to short-to-long-term sustainable practices is the roadmap for the Environmental element of Manavhela’s role. For companies to get of the national grid and adopt the renewable energy require a proper infrastructure and financial capital.

Although there has been a successful reduction made of average cost of electricity generated from R2.37 to .77c, the realisation of your investment is still within medium-to-long term.

ESG issues cannot be achieved over night but require medium-to-long term APRIL 2019

“The redefining of sustainability has forced me to reconsider my current role in society and the contribution I can make to advance sustainability in a more meaningful and clearly defined way� — Vhahangwele Manavhela, Environment, Social & Governance Manager, PIC

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APRIL 2019

“ When you see that the people within the company have got a sense of ownership, that is what gives me satisfaction” — Vhahangwele Manavhela, Environment, Social & Governance Manager, PIC

under the auspices of Eisenhower Fellowship (EF) in the United States.

The purpose of her EF journey was to to determine if the US market has evolved in terms of ESG integration to a point where ESG is fully integrated into the investment process, and consequently if they are able to quantify its value as part of equity valuation. Based on the information she collected during her fellowship, Manavhela decided to pursue her aspiration of studying and is currently working on her PHD, further exploring the role and value of ESG in business.

planning. But there are quick wins

In the conclusion of her report,

as well: changing light bulbs, installing

Examining Models for Quantifying the

water meters. What you do is encourage

Contribution of ESG-Related Activities

companies to adopt the strategies where

to Financial Performance, she writes:

they can get those quick wins, and then

“I was on a mission to find both meaning

turn those into long term strategies.”

and new ways to advance sustainability

Despite all the obstacles making

in this changing world. The redefining

ESG mandatory for investors and within

of sustainability has forced me to

invested companies could be a game

reconsider my current role in the

changer for achieving sustainability.

society and the contribution I can make

The principles of responsible investment,

to advance sustainability in a more

as championed by institution like

meaningful and clearly defined way.”

UNPRI and Global Compact, are key drive to driving sustainability.

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EMMERSON: DISRUPTING THE GLOBAL POTASH MARKET WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

211

EMMERSON PLC

Hayden Locke, Executive Director of Emmerson, explores how the company looks to disrupt the booming potash market with the Khemisset project

I

n the mining industry, location is not only a competitive advantage – it can also be the difference between

success and failure. This is particularly the case in the global potash market, one that 212

has a number of barriers to entry meaning only a handful of operations have been built over the last 50 years. “There’s a reason why there’s been only one new potash mine built in the last 50 years outside of Russia and China and that is primarily the astronomically high capital cost to production for most potash mines,” says Hayden Locke, Executive Director of Emmerson. “That mine was built in Canada, cost over US$4bn, and was built at a time where potash prices were more than double what they are today. In today’s market, that mine would never have been built.”

Emmerson is a potash company focused on the development of its flagship Khemisset Potash Project, located in Northern Morocco.

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EMMERSON PLC

214 The project has significant exploration potential with an accelerated development plan that is targeting a low capital expenditure (capex), high margin potash operation which will produce around 800,000 tonnes per annum. One of the key highlights of the project is its very low capital cost to production by potash industry standards. In the opinion of Locke, this is the first hurdle to be cleared in order to have any chance of entering this extremely protected market. Its location in Morocco, with a number of export ports accessible from the project site and close

“ I F YOU’RE CLOSE TO YOUR END MARKET, YOU WILL LIKELY ALWAYS BE COMPETITIVE, JUST THROUGH THE COST SAVINGS IN THIS KEY AREA” — Hayden Locke, Executive Director, Emmerson

CLICK TO WATCH : ‘EMMERSON PLC ON TARGET WITH LOW CAPEX POTASH PROJECT’ 215 proximity to the deep European,

Morocco it has a huge advantage over

Brazilian and US markets provides

competitors.”

the second competitive advantage –

Morocco is fast becoming a signifi-

one which is unerodable. “The majority

cant player in the global potash market

of existing potash production is located

and has been identified as one of the

in Canada and the Former Soviet

top five fastest growing import markets

Union, and by far the biggest costs for

for potash in the world. This has seen

these producers are incurred through

potash demand grow at over 140% per

royalties, transport and logistics,”

year over the last five years. “That’s

Locke explains. “If you’re close to your

basically 70 times faster than the global

end market, you will likely always be

market,” says Locke. “That’s a real

competitive, just through the cost

strategic advantage to this project and

savings in this key area. Khemisset’s

something that gets me excited about

location is second to none, and with

what we can achieve.” Over the course

the negligible royalties payable in

of his career, Locke has worked in

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EMMERSON PLC

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senior executive roles for a West African

dealing with commodity cycles, you

gold developer and a potash dev-

hear of people getting lucky and timing

elopment company based in both

their investment in the cycle perfectly,”

London and Spain. This experience

says Locke. “But that is not easy to

has provided him with a unique view

do, so you need to bulletproof yourself

of the potash market, as well as the

against the cycle by being among the

challenges of working in the African

lowest delivered costs to your custom-

market and attracting investment.

er and in potash: that’s largely driven

Khemisset benefits from an incredibly

by location.”

attractive location, but Emmerson also

The Khemisset project is less than

looks to create an operation with very

150km from an operating port that is

low capex by industry standards, which

already accessible from existing

will prove key in attracting investment

logistics infrastructure, and is 90km

as it looks to advance development.

and 130km respectively from two

“Having worked for the best part of

additional ports, which are also easily

a decade in the commodity space and

accessible. Having this infrastructure

E XE CU T I VE PRO FI LE

Hayden Locke An experienced mining executive with 15 years’ experience in mining, private equity and investment banking. Most recently, Locke was Head of Corporate and Technical Services (Geology, Mining and Processing) at ASX listed potash developer Highfield Resources. Prior to this, Hayden was Head of Corporate for ASX listed Papillon Resources which was sold to B2Gold in 2014 for $650mn. Throughout his education, Locke studied engineering, commerce and geology.

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DRILLING

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219

already in place, with limited invest-

our location and general infrastructure

ment required by the company, means

at the mine site.”

a significant reduction in overall capital

Around 95% of potash produced

costs. It does not need to invest in

around the world is used in fertiliser for

upgrading or building the infrastruc-

agriculture. It has a direct impact on

ture. “The transport and logistics

the global food supply, and with the UN

infrastructure to get to the export stage

expecting the world population to

is first class,” says Locke. “Morocco is

reach 9.8bn by 2050 the demand for

a trading nation with incredible infra-

potash will only continue to increase.

structure. It’s certainly a leader in

Locke feels that as the global agricul-

Africa from an infrastructure stand-

ture space looks to increase its yield

point, even when compared to South

and production by around 70%, it will

Africa, and we benefit from that mass-

both control and protect the potash

ively with amazing roads to and from

market. “For the last hundred years

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EMMERSON PLC

this market has been dominated by a handful of suppliers who have shown themselves to be very disciplined when the price fluctuates. When prices rise, they increase production to bring the price back down,” he says. “When you combine this price discipline with the traditionally high barriers to entry – in the form of capex – you can understand why there have been virtually no new entrants to the market in the last five decades. The only way to guarantee entry to this market is through lower capital cost production, which is what Khemisset will bring.”

The traditionally controlled potash market has allowed companies like Emmerson to look at existing and successful potash operations in great detail. In particular, Locke has been

they could not get past those barriers

able to better understand the structure

to entry, so you really need to take a

of the market in order to see whether

different viewpoint,” he says. “We spent

Emmerson could compete – and

a lot of time looking at our competitors

indeed whether it should compete with

and those existing operations to

incumbents in the first place. He points

analyse the cost structures and what

to BHP as an example: the company

does and doesn’t work before embark-

has tried on three separate occasions

ing on this journey.”

to enter the potash market, all of which

This approach allowed Locke and

have proven unsuccessful. “This is the

Emmerson to identify two clear prereq-

world’s largest mining company and

uisites to success: capital cost to

“IT’S A FAIR AMOUNT OF WORK TO GET THROUGH BUT WE’VE GOT LOFTY AMBITIONS” — Hayden Locke, Executive Director, Emmerson

221

production, and location relative to

will focus our attention because of our

customer and end prices. With

strategic conclusion on where we can

Khemisset he believes that the

compete and where we can maintain

company has “ticked both boxes” and

our competitive advantage against our

can focus on its key markets of

incumbent peers.”

northwest Europe, South Africa, Brazil

An international mining operation,

and North America accessed through

regardless of the attractiveness of its

New Orleans, Louisiana (NOLA). “I call

cost structure and location, requires

it the Atlantic corridor,” says Locke. “It

local partnerships in order to succeed.

accounts for around 65% of global

Locke believes this is absolutely

potash consumption. This is where we

fundamental as local partners can

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EMMERSON PLC

provide crucial input regarding local market economics. Emmerson is currently identifying and streamlining its supplier network and Locke approaches this with a knowledge sharing mindset. “Having local partners of size and scale to be able to support you and give you the right answer and provide you unfettered service and access to whatever it is you need is fundamental to success,” he says. “It’s very, very difficult to succeed in Africa without strong local partnerships.”

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Locke says another area which is fundamental to success is identifying partners with strong technical expertise. “Technical expertise is hard to come by, especially in potash. It is important to identify those groups and work with them as early as possible.

One example is our drill contractor, Drillon, who has proven itself to be an exceptionally professional and technically competent partner for our current drilling campaign”.

The next 12 months will be pivotal for Emmerson and the Khemisset project as the company is currently working to acquire its mining licence, deliver an environmental social impact assess-

“THE TRANSPORT AND LOGISTICS INFRASTRUCTURE TO GET TO THE EXPORT STAGE IS FIRST CLASS” — Hayden Locke, Executive Director, Emmerson

ment (ESIA), and conduct and complete a definitive feasibility study (DFS). The company has commenced a drilling programme to upgrade its resource estimates and, according to Locke, “cement the confidence that we have in the numbers and technical characteristics of the ore”. “Ideally we will have delivered on most of that this year,” he adds. “It’s a fair amount of work to get through but we’ve got lofty ambitions.”

Khemisset looks set for a mid-2022 production phase, when Emmerson will cement itself as a key driver of a broader African fertiliser story. Locke believes that the company will achieve its targets because of the time it has invested so far in getting it right.

“Achieving that will be a testament to the work that we’ve put in,” he says, “and because we’ve been through the process a number of times we know exactly what we need to do.”

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