Business Chief MEA – August 2019

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MIDDLE EAST & AFRICA EDITION AUGUST 20 19

‘Smart airline’ of the startup nation

Qatar’s ‘next generation bank’ Head of Information and Communication Technology, Saltuk Benderlioglu, on how the commercial bank maintains its digital edge

City Focus

CEOs in Africa

LAGOS

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FOREWORD

W

elcome to the August edition

startup nation.” Read on to discover

of Business Chief Middle

what makes a smart airline.

East and Africa! In our lead feature piece, we check This month’s cover piece is an

in with Tetiana Miroshnychenko to

interview with Saltuk Benderlioglu,

discuss the progression of Zoetis’

the Director of Information

A.L.P.H.A initiative, and how

and Communication Tech-

it ‘drives sustainability,

nology at Al Khalij bank,

as well as improving

where he discusses in

the lives of women.

depth what constitutes

Elsewhere, we look

a next generation bank. “To be the ‘next genera-

at the top 10 CEOs

Saltuk Benderlioglu, Al Khalij bank

tion bank’ is to be a step ahead of where we are in the financial services market

across the Middle East and Africa, and delve deeper into Nigeria’s largest

city, Lagos.

in which we operate.” Do you have a story to share? Please We also had the opportunity to speak

don’t hesitate to get in touch and you

with Shahar Markovitch, the Chief

could be featured in our next issue.

Digital and Information Officer of El Al Israel Airlines. In this issue he

Enjoy the read!

shares that “El Al’s overall goal is

Amber Donovan-Stevens

to be the smartest airline for the

amber.donovan-stevens@bizclikmedia.com

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

a fri c a .busi ne ssc hief. com

03


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MEA EDITION EDITOR-IN-CHIEF

AMBER DONOVAN-STEVENS MANAGING EDITOR

MATT HIGH

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CONTENTS

10 Qatar’s ‘next generation bank’ powered by digital transformation

28

Zoetis’ A.L.P.H.A. Initiative: creating sustainability in Africa

38 WHY CORPORATES SHOULD LOOK TO STARTUPS TO SPUR THEIR INNOVATION


56 THE CUSTOMER PERSPECTIVE

HOW CASCADES AND SAP PRIORITISE SUPPLY CHAIN SUSTAINABILITY

48 WESPORTUS: HOW BUSINESS STRATEGY CAN REVOLUTIONISE SPORTS SCOUTING

66

92 El Al Israel Airlines City Focus

LAGOS

76 TOP 10 CEOs in Africa




10

Al Khaliji Commercial Bank P.Q.S.C.: Qatar’s ‘next generation bank’ powered by digital transformation WRITTEN BY

AMBER DONOVAN-STEVENS PRODUCED BY

K ANE WELLER

AUGUST 2019


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a f r ic a . b u s in e s s c hie f. c o m


A L K H A L I J I C O M M E R C I A L B A N K P. Q . S . C

In an exclusive interview with the Head of Information and Communication Technology of Al Khaliji, Saltuk Benderlioglu shares the transformation the commercial bank is undertaking to maintain its digital edge

A

l Khaliji Commercial Bank P.Q.S.C is Qatar’s pioneer ‘next generation bank’, offering a full range of conventional

banking products and services to Premium, 12

Business, Corporate, and International clients in Qatar and France. Though the bank is little over a decade old, it has amassed awards such as Best Corporate Bank for two years consecutively, Best Private Bank in 2019, and Fastest Growing Bank. Saltuk Benderlioglu was part of the establishment of Al Khaliji when it came into operation in 2008. In 2014, he became Head of Information and Communication Technology. “In my role as Head of IT, it is my responsibility to steer our bank through the uncharted territory of unpredictable technology trends,” he explains. “This includes Internet of Things, machine learning, AI, data analytics, blockchain and robot advisers. In this role I need to understand the technological climate to ensure that our bank maintains its competitive edge.” He emphasises that, with the AUGUST 2019


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A L K H A L I J I C O M M E R C I A L B A N K P. Q . S . C

“ Security of data is always our first priority” — Saltuk Benderlioglu, Head of Information and Communication Technology

growth of technology, the need for information security only increases, adding that Heads of IT have a responsibility to ensure that new and creative solutions are combating cybersecurity challenges. Benderlioglu says that banks take years to establish, and that the company has adjusted its banking strategy over the years to match changes in climate. It has done this by initiating corresponding technology projects, such as core banking replacement. “Technology is driving the business environment, but when

14

devising our business strategy, technology must always follow the business,” says Benderlioglu, emphasising that the most important factor in the company’s current transformation plan is agility. “This ensures that we maintain our competitive edge, and keep ahead as the ‘next generation bank’.”

BECOMING THE ‘NEXT GENERATION BANK’ “To be the ‘next generation bank’ is to be a step ahead of where we are in the financial services market in which we operate. This means remaining technologically advanced.” Benderlioglu warns, however, of the risk that AUGUST 2019


CLICK TO WATCH : ‘MEET JASSIM AND NOOR’ 15 accompanies this challenge, as

bank is technologically transforming

technological trends have the

to become the ‘next generation bank’.

potential to lead businesses astray

“Al Khaliji is moving towards cloud

from the market or business model.

computing with slow but steady steps,”

It is to this end that Al Khaliji proceeds

says Benderlioglu. “Currently, the

with caution and thorough analytics.

bank is focusing on hybrid options,

“The ‘next generation bank’ is able to

which means being able to run

make educated, high-quality deci-

services both from the cloud and with

sions, on the state of technology in

services on the premises.” In addition

order to remain a leader in financial

to this, Al Khaliji is building upon its

services,” he explains. “The other

AI capabilities. “AI applies first to our

quality of a ‘next generation bank’

analytics. Our IT strategy divides into

is maintaining appeal to younger

two major sections: transactional

generations of customers.”

banking and analytical banking.”

There are many ways in which the mid dl e e a s t . b u s in e s s c hie f. c o m

He notes that AI is particularly relevant a f r ic a . b u s in e s s c hie f. c o m


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Delivering the Vision: A Technology Journey In 2007 there was real excitement around a bank in the Gulf that wanted to do things differently. Al Khaliji had a powerful vision of developing the next generation of banking services, using the latest innovative technologies to fuel its expansion across the region. Vedas was part of that journey from the early days. It was Al Khaliji’s first local technology partner and remains a key supplier of software and professional services – in fact, the only partner still working with Al Khaliji twelve years later thanks to its deep payments industry expertise and ability to support the bank with continual innovation and digital transformation. Business Development Director Christine Rayes recalls that “Banks in the Gulf were ahead of many of their European counterparts because they were able to invest in new technologies without worrying about legacy infrastructure. What clinched the deal for Vedas was our ability to offer instant issuance for EMV smartcards – something that hadn’t yet been done in Europe, where customers still waited several days for their new debit and credit cards to arrive by mail.” The Al Khaliji infrastructure created a full lifecycle approach to card management, which was extremely unusual at that time. It included EMV card issuing and acquiring, as well as ATM and POS transaction switching and kiosk-based services. Back-office functionality was integrated on the same platform, including settlement, reconciliation and dispute management. Vedas rose to the challenge of helping to build this new transactional banking ecosystem and began its enduring relationship with the bank’s technology team. The age of 24 x 7 payment processing, with improved transaction speeds, enhanced data availability and multi-channel customer interactions had arrived. Al Khaliji was one of the first banks in the region to move towards a flexible and scalable service-oriented infrastructure for card and non-card payments, setting the bar high for competitors to follow. Over the last decade, the world of payments has continually evolved, with increasing need for open architecture and easier integration of new services. Al Khaliji’s original vision means the bank is always ready to adopt new ways of serving its customers as their preferences shift to digital and mobile channels and e-commerce has become increasingly important. Here too, Vedas is recognised as an industry leader, with its unique combination of world-class solutions experience and local knowledge. The company’s Apex suite of software solutions is designed specifically to address the functional and regulatory requirements of banks in the Gulf region and to complement solutions from Vedas’s global technology partners. Since 2011, this suite of capabilities has grown significantly to reflect the ever-changing payments

landscape. “Banks have been increasingly focused on building customer relationships through loyalty, big data management and analytics,” explains Christine Rayes. “At the same time, we have developed extensive tokenization and cybersecurity solutions to help clients address the risks of doing business in the online world.” Vedas has also become one of the region’s most experienced and accredited providers of mobile payments solutions. The evolution of payments continues at a pace which means that there will always be new technology projects to enable change and innovation in customer-facing banking services. What does Vedas see happening in the Gulf market over the coming years? Across the region, banks are facing increased competition in provision of payment services, with new entrants including technology platform providers and FinTech companies. The pace of technology change is faster than ever and there are big opportunities for innovation. Banks need to define new strategies to enable rapid and seamless delivery, focused on building strong relationships with customers and increasing revenue by introducing new services. Reputations will be established on the ability to innovate and willingness to embrace the next generation of new technologies. Security of transactions and customer data will be key to success, along with a focus on omnichannel payments strategies as the differences between payment types and markets become increasingly blurred. In technology terms, this means handling real-time account-to-account transactions, contactless and NFC payments, QR codes, mobile P2P and strong authentication solutions. There are new possibilities presented by blockchain and future-proof payment hubs; but there are also challenges associated with compliance and customer demands in an increasingly global payments market. Through its commitment to deliver innovative solutions in this space, Vedas has expanded its Apex Suite with new and exciting applications covering all the payments solutions made possible by those technological enablers, from blockchain, to instant payments and tokenization. “Vedas is on an exciting journey with Al Khaliji,” concludes Christine Rayes. “We are very proud to have continued this collaborative and trusted relationship with a highly valued client. As payments evolution continues, Vedas looks forward to supporting Al Khaliji’s vision for the next decade.”

Proud to be supporting Al Khaliji Bank with payment technology solutions


A L K H A L I J I C O M M E R C I A L B A N K P. Q . S . C

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to the latter, and that the bank is

from the beginning in order to have

working on systems to assist with the

a good analytics framework for your

decision making aspect. This includes

internal decision making.” Al Khaliji

aspects of compliance, which has also

began its implementation of analytics

improved with the implementation of AI.

internally, focusing on regular reporting,

“These areas are where we have our

management information, decision mak-

foot in the AI world, and our starting

ing systems and compliance. Bender-

point before we move to offering direct

lioglu attributes part of this success

AI solutions to our customers.”

to one of the bank’s partners, Tyconz,

Benderlioglu shares that the

which helped establish the founda-

adoption of these new technologies

tions for analytics. “We are now in a

is not without its challenges. “The

position to offer our analytical power

trickiest part of data and analytics is

to our customers, and we are in the

that the foundation needs to be right

process of preparing to offer this to

AUGUST 2019


our corporate clients.” This will allow

Benderlioglu says that the largest

customers to access their own

challenge was managing expecta-

information in the speedy and efficient

tions. Benderlioglu is referring to the

way that is increasingly demanded by

wide variety of associations that can

today’s consumer.

be had with a robot, from basic

One notable innovation from the

automation to the most creative

bank is the creation of humanoid

science-fiction inventions. “We have

robots, Jassim and Noor. “Our

to ensure that the robot is always

humanoid robots are implemented in

presented in the context of banking,”

our sales strategy. As these human-

he elaborates. “This is a customer

oids can move on their own, we

service designed for the banking

present them at customer-based

population.” It is for this reason that

events,” explains Benderlioglu. When

the humanoids act as ‘ambassadors’

asked of the challenges presented

of the bank, and not a direct sales

when creating the humanoids,

point. Despite this, they have the

E XE CU T I VE PRO FI LE

Saltuk Benderlioglu Saltuk Benderlioglu is the Head of Information and Communication Technology at Al Khalij Commercial Bank. Mr. Benderlioglu has 20 years of experience in Banking Industry specializing in technology transformation projects. He joined Al Khalij Commercial Bank during the greenfield establishment of the Bank on 2007 and implemented a number of technology initiatives since then. He received his Bachelor’s degree from the University of Ankara and earned his MBA from the Kelley School of Business at Indiana University.

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“To comply with GDPR, we have a sepa-

member of the sales team, should

rate storage facility for our European

they interact with a customer with

operations. When information needs

greater requirements.

to be exchanged for compliance, we

With the rise of Big Data, AI and

interact with European and, in particu-

analytics, the need for security is

lar, French regulations.” Benderlioglu

greater than ever. “Security of data is

notes that Al Khaliji’s vast knowledge

always our first priority,” asserts

of regulation also offers potential.

Benderlioglu, “and regulation is

“By understanding these laws across

paramount to a bank that operates in

different countries, it provides us with

multiple countries, as regulation varies

a better understanding of data and the

across regions.” This is particularly

new ways in which it can be utilised

relevant to Al Khaliji, as the bank must

in countries we operate in outside of

take into account compliance with

Europe. This allows us to provide

GDPR in its French subsidiary.

greater security to all of our customers.”

CLICK TO WATCH : ‘NEW TO QATAR’

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A L K H A L I J C O M M E R C I A L B A N K P. Q . S . C

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“ Technology is driving the business environment, but when devising our business strategy, technology must always follow the business” — Saltuk Benderlioglu, Head of Information and Communication Technology

technological shift, and this has required effective communication and education both internally to our staff and externally to customers and regulators.” Benderlioglu said that overseeing this process was a challenge, as it is not an easy process, but Al Khaliji has done it exceptionally well. “If you fail to implement change management, you cannot conduct successful, large projects in sequence.” Al Khaliji has two offices within the bank that are responsible with coordinating this process: a small, effective IT office,

This knowledge is highly valued by

and an overall strategy for projects

Al Khaliji’s customers, as the bank

functionality that reports directly to the

communicates with every demographic

CEO. “The CEO office itself has a

of readership through its social media

strategy and project management lead,

platforms and corporate communica-

which works in full coordination with all

tions department. “Our customers are

the stakeholders, but particularly with

demanding,” says Benderlioglu. “They

the project and strategy office in the IT

want to know what is happening with

department. This is required of a fast

their data, and it is our responsibility to

paced bank like us, and this is what

reassure them and keep them abreast

makes us the ‘next generation bank’.”

of our updated security solutions.”

Should the bank need additional help with implementing a strategy, it

CHANGE MANAGEMENT

chooses to approach specialist

“We have implemented the art of change

consultants. “Boston Consulting Group

management,” says Benderlioglu,

assisted us and helped us with

reflecting on the transformation thus

implementing a new strategy a few

far. “We have been through a rapid

years ago,” says Benderlioglu.

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A L K H A L I J I C O M M E R C I A L B A N K P. Q . S . C

“ To be the ‘next generation bank’ is to be a step ahead of where we are in the financial services market in which we operate. This means remaining technologically advanced” 26

— Saltuk Benderlioglu, Head of Information and Communication Technology

Digital transformation has caused

a company that is right for Al Khaliji

a significant shift in culture, but

because it consistently develops its

Benderlioglu asserts that this has only

solutions with agility.” He notes that

strengthened Al Khaliji’s relationship

a long-term key partner is VEDAS, as

with its vendors. “Al Khaliji seeks a long

it supports Al Khaliji in the payments

term partnership with its vendors,”

sector. “It can be more of a challenge

he says. “We are diligent in finding the

to engage and maintain new technologies

right solution for us and our customers.

when attention is primarily focused on

We have our solutions customised for

the day to day running of the bank, but

us, and seek to fully understand and

VEDAS brings us the latest innovations

build upon each tailored solution.

and informs us of new technological

One excellent example is Temenos,

advancements across the world.”

AUGUST 2019


27

THE FUTURE OF THE BUSINESS

regular discussions take place with

Qatar is a fast moving economy, and

regulators, resulting in a modification

as Al Khaliji looks to the future, its

or introduction of policy. With the

strategy places it in a prime position to

conscientious nature of the bank,

remain at the forefront of technological

and its educated understanding of the

growth across the region. Benderlioglu

movement of the technology market,

notes that, as Al Khaliji presses on

it certainly will continue to establish

through its digital transformation, it will

itself as the ‘next generation bank.’

be pushed to reconsider regulatory boundaries. He adds that technological advancements move ahead of regulations, and so it is imperative that mid dl e e a s t . b u s in e s s c hie f. c o m

a f r ic a . b u s in e s s c hie f. c o m


LEADERSHIP

Zoetis’ A.L.P.H.A.

Initiative: accelerating sustainability 28

in

Africa

AS THE AFRICAN LIVESTOCK PRODUCTIVITY AND HEALTH ADVANCEMENT INITIATIVE CONTINUES TO DRAW SUCCESS, WE SPOKE WITH TETIANA MIROSHNYCHENKO, A.L.P.H.A INITIATIVE LEAD, ON THE DRIVE TO BUILD SUSTAINABLE FARMING FOUNDATIONS IN AFRICA

WRITTEN BY

AUGUST 2019

AMBER DONOVAN-STEVENS


Photo Š Bill & Melinda Gates Foundation / Mulugeta Ayene

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LEADERSHIP

T

etiana Miroshnychenko started with Zoetis in December 2018 in a new position specifically created in order for her to lead the A.L.P.H.A

initiative. Before she took this role, Miroshnychenko had begun her career in Ukraine, gaining experience in a variety of areas such as business development, marketing and commercial aspects of human pharma. She headed the Ukraine office before relocating to the UK and Belgium to undertake global roles. Her extensive knowledge of the developing markets, experience within operational roles, and interaction with a vast

variety of individuals and cultures, placed her as 30

the ideal candidate for the role. The A.L.P.H.A initiative was introduced in 2017, in order to improve livestock health and positively impact farmer’s livelihoods in sub-Saharan Africa. The initiative is co-funded by the Bill & Melinda Gates Foundation, which provided a US$14.4mn three-year grant to assist with sustainable growth and development of the farming sector in Africa. “The focus of the initiative can be defined by three pillars,” explains Miroshnychenko, “The first is the improvement of medicines and veterinary services. The second is providing training and education, and the third is the implementation of diagnostic infrastructure, to ensure that people are not only receiving help, but understanding the relationship and the results.” Miroshnychenko emphasises that the key to ensuring sustainability is the AUGUST 2019


Photo © Bill & Melinda Gates Foundation / Olivier Asselin

31

“ Our people are very passionate about social impact and the future” — Tetiana Miroshnychenko, A.L.P.H.A Initiative Lead

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LEADERSHIP

incorporation and development of veterinary laboratory networks across these regions. By improving access to critical veterinary products and services like diagnostics labs we can make a positive impact long-term on the quality of animal healthcare. According to Zoetis’ statistics, 50% of the people in Sub-saharan Africa, who live on less than $1 a day, rely on livestock, which is responsible for 45% of household income. Miroshnychenko notes that the initiative is functioning 32

Bill & Melinda Gates Photo © Kjetil Ree

across four countries: Uganda, Nigeria, Ethiopia and Tanzania. These locations were agreed upon with the Bill & Melinda Gates Foundation as they have the fastest growing populations, and thus an increasing requirement for food and nutrition. “Nigeria is the third most populated country in the world, yet unfortunately, infrastructure is not very well developed. This means that Zoetis could not provide assistance directly, but instead with the support of the Bill & Melinda Gates Foundation, we were able to set up an organisation within the country, which would allow us to establish the foundations for

Tetiana Miroshnychenko

AUGUST 2019

a sustainable future for commercial organisations.” As an example, Zoetis


CLICK TO WATCH : ‘ZOETIS AND THE AFRICAN LIVESTOCK PRODUCTIVITY AND HEALTH ADVANCEMENT (A.L.P.H.A.) INITIATIVE’ 33 recently opened a poultry diagnostic

in smallholding farms, and women are

laboratory hub in Nigeria that will

in charge of both caring for families

support the whole region. Currently,

and livestock, so it is important for them

over 1500 farmers and farmers’

to learn and generate sustainability in

trainers have received specialised

order to provide for their families. In

training via the ALPHA initiative.

Nigeria, there are less women working

Miroshnychenko says that the

in farming, as men take on the heavier

initiative has adapted to each country

tasks such as herding.”

in a slightly different way. “In terms of

Miroshnychenko says that there is

the training and education we have,

an increased number of women with

around 40% of women participating in

a curiosity for agriculture and farming,

our training and education campaign in

and it is important to provide this

Uganda, but only 30% in Nigeria,” she

education now as to best provide them

says. “There is a prevalence of women

with the tools to create a sustainable

in Uganda caring for cattle and poultry

future for their families, and so the

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LEADERSHIP

“ It’s all about personal accountability and team accountability for what you’re doing and the results you are bringing to the company and to broader society” — Tetiana Miroshnychenko, A.L.P.H.A Initiative Lead 34

future of the country. “The Zoetis team

doing and the results you are bringing

work closely with local communities

to the company and to broader society.”

to understand local needs and provide

One major achievement made within

relevant opportunities for women to

the regions is the supply of medication,

participate in the activities held,” adds

which was previously almost non-

Miroshnychenko.

existent. “We have now submitted 66

Miroshnychenko believes that a strong

products which require registration.

sense of accountability is the driving

The process can take up to a year and

factor to excellent performance within

a half, so this is an excellent number,”

Zoetis and the A.L.P.H.A initiative: “It’s

she says. In terms of education,

all about personal accountability and

Miroshnychenko states that women

team accountability for what you’re

in particular are learning how to

AUGUST 2019


35

Photo © Bill & Melinda Gates Foundation / Sarah Elliott use vaccines, and work closely with

passionate about social impact and

veterinarians pharmas to learn how

the future,” concludes Miroshnychenko,

to build upon these skills.

“we have a very diverse team who are

As the initiative continues, Mirosh-

really keen on building a sustainable

nychenko says her company is ready

future and bringing the social impact

for the challenge of the launch of

in Africa.” If the A.L.P.H.A initiative

the 66 products to the market, with

continues with such diligence and

the registration of more. This initiative

commitment, it is undoubted that the

is just one of many that Zoetis is

essential foundations to sustainability

operating in partnership with the Bill

will be created in these four countries.

& Melinda Gates Foundation across several countries. “Our people are very mid dl e e a s t . b u s in e s s c hie f. c o m

a f r ic a . b u s in e s s c hie f. c o m


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TECHNOLOGY

38

WHY CORPORATES SHOULD LOOK TO STARTUPS TO SPUR THEIR INNOVATION Ritam Gandhi, Founder and Director, Studio Graphene, explores why traditional corporations should be inspired by startups if they want to keep up with the blistering rate of innovation WRITTEN BY

RITAM GANDHI

AUGUST 2019


39

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TECHNOLOGY

A

ccording to the American Enterprise Institute (AEI), only 60 of the Fortune 500 companies listed in 1955 still retain

their place amongst the business elite. While for some of these companies, the decline was inevitable, for many it reflects their reluctance to embrace disruptive trends that have radically transformed the business environment and the nature of consumer demands. In their wake has come a new generation of corporate titans including tech giants like Facebook, Amazon and Netflix who have rapidly become the dominant players in their 40

respective industries. While many of these companies had humble beginnings as startups, once they went public, they began to adopt a more corporate mentality in order to deliver regular profits for shareholders. Tesla Founder and CEO Elon Musk is a high-profile critic of this trend, saying that: “Being public puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right in the long-term.� Indeed, part of what marks Musk out as such a successful entrepreneur is that he has retained his entrepreneurial spirit despite Tesla now being one of the biggest companies in the world. Many of his contemporaries, visionary leaders who took their AUGUST 2019


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“I believe that established companies would be wise to outsource innovation by partnering with young and dynamic startups” — Ritam Gandhi, Founder and Director, Studio Graphene

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companies from startup to the upper echelons of the Fortune 500, have long since been replaced by processoriented executives with corporate backgrounds. As someone who made the leap from the corporate world of management consultancy into the dynamic startup landscape, I know how difficult it is for companies to retain their dynamism as they transition from agile challenger to established incumbent. While many founders bemoan the lack of a level playing field when it comes 42

to the resources available to large corporates, being small can be an

“If large companies don’t take the necessary action to stay one step ahead, they’ll soon find themselves falling behind” — Ritam Gandhi, Founder and Director, Studio Graphene

advantage for innovative startups as they are neither too unwieldy nor too conservative to implement new ideas.

for more cost-effective enterprises. As private entities, startups can make

WHAT DO STARTUPS HAVE TO OFFER?

decisions with the long-term in mind as

So, if the balance of power is currently

they don’t have to worry about the

tipping away from large corporates it’s

impact of quarterly performance on

worth asking what about startups

their share price.

makes them so innovative. Startups

In my work with startups, I’ve seen

generally consist of a small team

how the need to break new ground

which means they can remain respon-

affects the culture of many successful

sive to changes in the market. They

startups. Indeed, the most successful

also depend for their vitality on

see their lack of scale as a virtue

identifying new, more efficient

because it makes for clear-eyed

methods, meaning they usually make

decision-making.

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However, even if corporates were to

successful that it will reshape the

acknowledge the merits of this

industry, making it less favourable

dynamic approach, they are fundamen-

to the company who developed it.

tally prevented by their size, structure startup mentality. Simply put, innova-

WHY DO BIG CORPORATES FAIL TO INNOVATE?

tion in the corporate world equates

 While large companies are too big

to risk. Risk of wasted resources,

and have too much on the line to be

both in terms of dollars and man-hours.

truly creative, total disregard for

Risk of reputational damage if a

innovation is not an option. These days,

creative project fails to bear fruit and,

companies understand that they have

in exceptional cases, the risk that a

to continue innovating if they want to

new product or technology will be so

guard against the threat of dynamic

and priorities from truly adopting a

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new challengers. Of course, casting

between their work on existing

aside your traditional ways of working

projects and on developing new ideas.

comes with an immense amount of risk

Google’s ‘20% time’ is probably the

and so it’s understandable that many

most feted example, whereby

executives are reluctant to whole-

engineers can devote 20% of their

heartedly commit to new projects.

time to personal projects. This has

Some companies reach a compro-

resulted in some of the company’s

mise that allows them to balance these

most successful products such as

competing objectives. For example,

Gmail, AdSense and Google Talks.

by implementing schemes that allow employees to strike a balance

While this approach can be a fruitful it’s worth noting that many companies

44

CLICK TO WATCH : ‘RITAM GANDHI TALKS ENTREPRENEURSHIP AND BUILDING A STARTUP THAT BUILDS OTHER STARTUPS’

AUGUST 2019


have become large global businesses.

WHY SHOULD LARGE CORPORATIONS LOOK TO COLLABORATE?

Corporates like Google now span too

The reality is that the corporate world

many sectors and jurisdictions to rely

is being disrupted at an exciting pace.

on such an ad hoc approach

Therefore, I believe that established

to innovation. Consequently, they need

companies would be wise to outsource

to find a framework that allows them

innovation by partnering with young

to continue pushing technological

and dynamic startups. Ultimately, these

boundaries while still focusing on

partnerships have the potential to

maximising the value of their major

create mutual value by granting the

revenue-generating products.

startup access to capital and distribution

have abandoned this model as they

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“ These partnerships have the potential to create mutual value by granting the startup access to capital and distribution networks while giving the corporate a chance to benefit from innovative new projects” — Ritam Gandhi, Founder and Director, Studio Graphene

J U LY 2 0 1 9


networks while giving the corporate a chance to benefit from innovative new projects. This change in corporate culture takes many forms including mentorship programmes and in-house tech incubators but strategic partnerships are gradually emerging as the most effective way of leveraging a startups’ disruptive potential. As corporations become larger and more results-oriented it makes it more difficult for innovative ideas to come to fruition. That’s why I believe forwardthinking companies are increasingly looking to collaboration with startups as the solution. After all, there’s nothing to suggest that corporates and startups have to co-exist as separate entities. In the digital age, size doesn’t guarantee future success. If large companies don’t take the necessary action to stay one step ahead, they’ll soon find themselves falling behind.

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PEOPLE

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WeSportUs: how business strategy can revolutionise sports scouting Could blockchain decentralise talent-spotting and make it fairer? WeSportUs thinks so. Ex-Banker Latif Adéothy is applying business expertise to revolutionise sports scouting WRITTEN BY

AUGUST 2019

LATIF ADÉOTHY


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B

usiness is often told to consider what it can learn from sport. But what about the other way around? What

could sport learn from business? Sport

focuses on winning, the team spirit and match analysis, but could it also learn how to focus on customers, empower teams and better use technology? Could technology disrupt sport and the talent-scouting process? I think it could definitely benefit from technologies that could decentralise decision-making. 50

I had an experience in Africa that convinced me to try and develop a solution. In Abidjan, a city on the southern Atlantic coast of Côte d’Ivoire, I came across a group of young footballers. Boys, with sandals on their feet, were playing on a field that looked more like scrub than a Premiership stadium. They let me join in for a little game. And we lost 10-0! Despite having never set foot in a training centre and playing in sandals, one young player scored eight goals! It disappoints me that this boy’s raw talent could go unspotted due to a lack of resources and visibility. The sports world wouldn’t be the first entertainment industry to be challenged by technology. The music industry has had to reinvent itself by harnessing, rather than AUGUST 2019


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“The benefit is twofold: To give more visibility to talent and to facilitate their relationship with potential supporters” — Latif Adéothy, Founder, WeSportUs

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continuing to fight, technology. So, the sports world could reinvent itself through digital to combine entertainment experience, performance, and the experiences of professional and amateur athletes. The benefit is twofold: to give more visibility to talent, and to facilitate their relationship with potential supporters. All this and an opportunity to restore sport’s positive image, which has been tarnished by numerous scandals. But how would this work when so many people play sports? In 2017, 52

two out of five people across Europe

AUGUST 2019

“ One young player scored eight goals! It disappoints me that this boy’s raw talent could go unspotted due to a lack of resources and visibility” — Latif Adéothy, Founder, WeSportUs


CLICK TO WATCH : ‘WESPORTUS – APP PROMO’ 53 played at least one sport once a week;

countries. So we need a mechanism

three out of 10 also played in clubs.

which could enable young talent to

That’s nearly 155mn, not to mention the

truly emerge from the multitude of

amateurs who sometimes play several

amateur athletes around the world.

sports, in the park or at home. More

This is still difficult to imagine on social

than 600,000 hours of videos are

networks in their current format.

uploaded to YouTube every day. With

In asking myself how we could

so many people participating in sport,

make sports-scouting less random,

it is difficult to identify the new talent

I started thinking about my experience of

who could dominate their discipline.

business, banking and blockchain. Could

The solution would need to incorporate

scouting benefit from blockchain, the

an innovative social network based on

disruptive technology that is disrupting

openness. Today, our talent spotting

the business world? It is a decentralised

system is focused on just a few

and participatory system and so, through

institutions located in the richest

its differentiating cultural and monetary

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value proposition, we could use blockchain to engage the social sports community in a different way. Why bet on the blockchain? Because the fundamentals of this technology are based on the very notion of transparency and information sharing. It’s a technology that is open to almost everyone and it’s decentralised and transparent. As a result, each transaction belongs to both individuals and everyone at the same time, making the system completely democratic and robust. This technology gives us an opportu54

nity to bring fans back to the centre of sport. Using decentralisation, athletes can showcase themselves and fans can like them, raising their profiles to potential patrons, sponsors and clubs. They can even give new talent a boost by microfunding new boots or access to professional training grounds. In business terms, this clearly demonstrates how sport can better listen to their customers (fans) and empower them. Fan involvement could also bring their passion and sense of fair play back to the heart of the global sports community. I want us to imagine a sports social network model that integrates AUGUST 2019

“ I want us to imagine a sports social network model that integrates a cryptocurrency and gives power to the fan communities that will elect the young athletes of tomorrow” — Latif Adéothy, Founder, WeSportUs


55 a cryptocurrency and gives power to

the players never get scouted. We’re

the fan communities that will elect the

inventing a decentralised global talent

young athletes of tomorrow. It’s not a

detection platform, within the reach of

pipe dream. Social networks could take

sports professionals, which will promote

on their full meaning and we can move

champions from multiple horizons.

from a narcissistic vision to a holistic

What if new technology and businesses

approach, taking on the role of

could find, support and sponsor the

revealing talent and creating a meritoc-

next Usain Bolt or the future Kylian

racy. The world of sport is truly at the

Mbappé? That’s the plan at WeSportUs.

crossroads of funding innovations and the emergence of new media to reinvent the entertainment of tomorrow. At the moment, too much talent is never seen, never makes it out of the park game and into the arena, because mid dl e e a s t . b u s in e s s c hie f. c o m

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THE CUSTOMER PERSPECTIVE 56

HOW CASCADES AND SAP PRIORITISE SUPPLY CHAIN SUSTAINABILITY Business Chief sits down with Xavier Duprat, Director of Logistics and Production Planning at Cascades, to learn how the business is putting sustainability at the forefront of its operations WRITTEN BY

AUGUST 2019

SOPHIE CHAPMAN


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A

ces Sustainability is quickly shifting from an idealistic preference to a missioncritical change in operations. Beyond

reduced waste and increased efficiency,

sustainability has emerged as a necessary way to do business to appeal to both partners and customers. Sustainable business practices are especially relevant in the packaging industry, historically one of the biggest contributors to supply-related waste with an estimated 30,000 tons rotting in landfills. Cascades, one of the top packaging manufacturers 58

in North America, is on the front lines of sustainable business practices through a streamlined supply chain. To hear about its story, we sat down with Xavier Duprat, Director of Logistics and Production Planning at Cascades. To get started, please tell us about Cascades and its core values? Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. With 25 plants operating across Canada and the United States, we are the largest manufacturer of containerboard in Canada and the sixth-largest in North America. In line with our corporate mission to “improve the well-being of people, AUGUST 2019


“ WITH 25 PLANTS OPERATING ACROSS CANADA AND THE UNITED STATES, WE ARE THE LARGEST MANUFACTURER OF CONTAINERBOARD IN CANADA AND THE SIXTH-LARGEST IN NORTH AMERICA” — Xavier Duprat, Director of Logistics and Production Planning at Cascades

59

communities and the planet by providing sustainable and innovative solutions that create value,” and to optimise our supply chain, we realised that we needed more consistent planning processes, faster planning cycles and better user engagement in our supply chain strategy. Why did Cascades decide to address the issue of waste? How are you tackling this? We have evolved our business processes to address the mid dl e e a s t . b u s in e s s c hie f. c o m

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“ WE HAVE EVOLVED OUR BUSINESS PROCESSES TO ADDRESS THE ISSUE OF SUSTAINABILITY HEAD-ON, KNOWING THAT IT IS AN INDUSTRYWIDE CHALLENGE” — Xavier Duprat, Director of Logistics and Production Planning at Cascades

issue of sustainability head-on, knowing that it is an industry-wide challenge. We understand that sustainable business practices, like an efficient supply chain, are not only good for the planet but are also good for business. What sustainability challenges has your company faced? In order to get the business results we wanted, we knew that we had to make some changes. Working alongside supply chain leaders such as SAP, we determined that enabling fact-based decision making by increasing end-to-end

60

supply chain visibility and providing access to information from one place was something that we needed to address. There was no relationship between sales and operations and strategy and tactical operations, which was also causing issues. We knew that we needed to make some changes in order to facilitate faster planning cycles and consistent processes for sales and operations planning, while improving collaboration and user engagement across functions. What SAP technologies are you using to help with the project and what AUGUST 2019


CLICK TO WATCH : ‘SUSTAINABLE PACKAGING – CASCADES IS PART OF THE SOLUTION’ 61 impact is the project having on the

customers have come to rely on. With

rest of the business? We introduced

SAP, we now have a comprehensive

the SAP Integrated Business Planning

and transparent overview of our supply

solution to provide full support for

chain, helping us to be highly responsive

monthly and weekly planning processes

to customer needs.

and to enable easy collaboration and quick resolution of issues across

In the end, why did you select SAP

functions. The enhanced data and

and how is its technology helping

forecasting help our company make

with efficiency? Implementing SAP

smarter decisions. With our employees

Integrated Business Planning has

and sales teams able to focus on

helped us establish long-term

adding value, we were able to be more

partnerships with our most strategic

agile and responsive to our customers’

customers. These partnerships

needs, allowing us to continue to deliver

enable us to support our growth and

the innovative products that our

sustainability goals with our strong

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focus on the supply chain. Since choosing SAP, we have seen valuedriven results, including: • Improved decision-making with the aid of more-accurate data and forecasts (up to 80% better forecasting accuracy • 90% less time needed for data collection • Reduced costs, due to increased visibility and improved collaboration • Improved planning security supporting sales to new markets • Greater efficiency with maximised 62

production capacity and faster access to relevant information for both internal and external users • Enhanced ability of employees and salespeople to focus on value-added tasks such as customer service. What trends are you seeing within the packaging industry and how are you adapting to them? The containerboard industry is increasingly moving towards a “buyer’s market,” as more capacity and foreign investments are shifting the equilibrium of demand and supply in this direction. In the past, it might have been somewhat acceptable to operate and service customers with AUGUST 2019


63

a certain amount of backlog within

Where do you see Cascades going in

a “weekly” window, but I don’t think

the next five years? We need to have

that will be the case in the coming

a clear understanding of our global

months and years because of this new

supply chain and master new pro-

reality. Customers are becoming more

cesses in order to deliver and exceed

demanding – and rightfully so. In

customer expectations. True customer-

response, organisations need to shift

centricity will hinge on on-time delivery

their mindset to service the customer

as a critical differentiator, and in turn,

in a timely manner, focusing more

help organisations thrive in this new

rigorously on cost control, working

environment over the next five years.

capital and “just-in-time inventory” best practices. mid dl e e a s t . b u s in e s s c hie f. c o m

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CITY FOCUS

LAGO City Focus

66

Could the dynamic city of Lagos be your perfect business hub? Business Chief MEA investigates…

AUGUST 2019


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CITY FOCUS | LAGOS

W

ith a burgeoning population of 20mn people in the greater metropolitan area, Lagos is the most populated city

both in Nigeria and in the African continent.

As one of the world’s fastest-growing cities, it has plenty of opportunities for entrepreneurs. In fact, the city produces about 10% of Nigeria’s GDP every year. Across Nigeria as a whole, Lagos is one of the easiest places to start a business and it’s moderately easy to register property and enforce business contracts. However, due to the 68

rapid pace of construction that is already taking place in the city, it can be difficult to get a construction permit. In these cases, it’s much easier to either purchase an existing space or work with a contractor who has experience in the process.

ABOUT LAGOS With the highest skyline in Nigeria, Lagos has an eclectic blend of architectural styles, mixing tropical, European and ultra-modern high rise structures. The modern high rises have become more prevalent due to the wealth in the city. With a 13-year development plan underway (set to conclude in 2025), the government is planning infrastructure for an expected population of 30mn, providing plenty of opportunity for businesses and development in the area. AUGUST 2019


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CLICK TO WATCH : ‘LAGOS – AFRICA’S OWN BIG APPLE’

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With a vibrant nightlife and strong

INDUSTRY

music scene, Lagos has a strong enter-

Much of Lagos’ business revolves

tainment industry, providing visitors to

around the financial market. Several

the city with outstanding options once

of the city’s richest businesses are

the workday is done. Its strong growth

banks and other financial institutions,

is opening doors to an evolving modern

providing plenty of options for busi-

Nigerian culture, partially fuelled by the

ness to gain funding in the city.

city’s many colleges and universities.

The three-section Port of Lagos is

A tourist destination that has been

Nigeria’s largest, providing intermodal

growing in popularity, the city’s reputa-

shipping of a variety of products,

tion for exceptional cuisine, beautiful

mainly petroleum, which is moved by

beaches and football games draws

rail to the port for loading onto tankers

a unique international crowd.

for shipment.

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CITY FOCUS | LAGOS

Nestle Nigeria With the Dangote Group taking up so much of the market in the push for Nigerian self-sufficiency, is it really surprising that it takes a multinational brand like Nestle to keep pace? Operating in Africa for nearly six decades, Nestle Nigeria is one of the

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BIG BUSINESS IN LAGOS

largest food and drink companies on

The Dangote Group

the continent. Employing over 2,300

Listed by Forbes in 2018 as the

employees in eight branch offices,

world’s wealthiest black man, Aliko

three manufacturing plants and the

Dangote started out in commodities

corporate headquarters in Lagos,

trading in the 1970s and then estab-

the company also reaches out to help

lished his cement company in Lagos

with development across the country

in 1992. He has also founded salt and sugar refineries, a flour mill and several other food and industrial plants in the area to serve the region and promote Nigerian self-sufficiency on the global market. Expanding to include a petroleum refinery that will process 650,000 barrels a day, he’s a dynamic leader who has brought significant success to the city. His expanding ventures include an upcoming petrochemical plant and a fertiliser plant. Market capitalisation for the company is in excess of USD$11bn and an annual group turnover in excess of USD$3bn. AUGUST 2019


73

to improve living conditions. This

parts of Africa and the UK. Its main

branch of the international conglom-

social initiatives are focused on

erate has an estimated market

helping developmentally disabled

capitalisation of USD$3.1bn.

children receive the care and support they need to succeed in life,

Guaranty Trust Bank

especially those on the Autism

Started in 1990, Guaranty Trust Bank

Spectrum Disorder. The multinational

was established on the basis of

financial giant receives multiple

customer service and trust, a mantra

awards every year that tend to be

which has helped it grow to become

focused on exceptional efficiency,

one of Nigeria’s largest financial

outstanding customer service and

institutions. With an estimated market

amazing innovation. Today it

capitalisation of USD$2.8bn, the

employs over 10,000 people, with

company has branched out into other

estimated assets of USD$11.77trn.

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T O P 10

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AUGUST 2019


CEOs in Africa The success of an organisation often relies on a CEO to provide strong direction and leadership. Business Chief counts down its top 10 CEOs in Africa who have delivered determined success WRITTEN BY

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AMBER DONOVAN-STEVENS

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T O P 10

Photo Š Wikipedia / Tayananiswa

Divine Ndhlukula [ B OR N Z IMB A B W E ] Born in Gutu, Zimbabwe, Dr. Divine Ndhlukula is the CEO and founder of DDNS Security Operations, also known as SECURICO. The Zimbabwebased outfit offers canine guard services, electronic security, and armored vehicles, among others. SECURICO reportedly employs over 4,000 people. Female roles range from 35% in the electronics divisions to 30% of middle managers to 52% of line supervisors, among others. The organisation reportedly generates revenue upwards of US$13mn annually, and Ndhlukula ranks among the 50 wealthiest women in Zimbabwe. Ndhlukula has earned numerous awards including the Zimbabwe National Leadership Excellence Award for the private sector in 2016, and African Woman of the Year in 2013. mid dl e e a s t . b u s in e s s c hie f. c o m

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Robert Collymore [ B OR N G U YA N A ] Born in Guyana, Robert Collymore was the CEO of Safaricom, a global telecommunications organisation based in Nairobi, Kenya. Collymore passed away last month after losing his battle with leukemia. Safaricom generated estimated annual revenue exceeding $2.25mn while employing more than 5,000 people. The telecom company has more than 25mn subscribers, and Collymore had a personal net worth reportedly exceeding $2.7mn. He was presented with the Moran of the Burning Spear by the president of Kenya in 2012, and African Investor named him International Business Leader in 2016, as well as CEO of the Year in 2017.

AUGUST 2019


Photo Š Wikipedia / Oandocc

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Adewale Tinubu [ B OR N NIG E R I A ] Adewale Tinubu is a businessman, consultant, attorney and CEO of Oando PLC, the leading indigenous oil and gas company on the continent. As CEO of Oando, he oversees an organisation that reportedly posts annual revenue of over $740mn and employs more than 1,000 people. Born in Lagos State, Nigeria, Tinubu’s net worth is over $15mn and he was named Entrepreneur of the Year, West Africa, by Ernst & Young in 2015.

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The kitchen revolution

As operators add more digital channels to their restaurants, it creates new complexity and challenges. Restaurants have been used to controlling the transaction flow. Now, with the rise of delivery marketplaces, mobile applications and in-store selfservice, restaurants need to compete at a higher level and adapt to a digital-first ordering environment. This means ensuring proper routing of orders into the kitchen, a focus on food quality and distribution at the right time and data/analytics to measure and improve the performance of the kitchen. Key trends impacting kitchen optimisation and production, include: • The rise of off-premise ordering & delivery To meet this growing consumer demand, restaurants need robust kitchen production systems to accommodate the flow of orders into the restaurant from multiple channels. • Speed of service Consumers no longer have any patience for waiting in lines or waiting for food. They essentially want to “speak” directly to the kitchen. • Growing dependency on kitchen data Real-Time production metrics are fast becoming a requirement. Operators need to be able to gauge order volume, production status, progress order times and manage staffing levels within their kitchen in real-time.

© 2019 NCR Corporation Patents Pending

Successful brands we work with are investing in kitchen optimisation and production technology to stay ahead of the curve. NCR Kitchen Operations solutions enable restaurants to plan and prepare for anticipated spikes in order volumes and manage the production of orders coming from all channels to improve the customer and staff experience. Brands that are leveraging NCR Kitchen Operations and Digital Signage are also improving the customer experience by providing guests with accurate quote times and order status notifications via text paging and in-app notifications. Large quick-service chains using our technology have increased their speed of service by as much as 15% with improved visibility into order volume, production status, order times and staffing levels. Over 30,000 restaurants around the world use NCR Kitchen Operations to manage their kitchen production. While not visible to consumers, kitchen optimisation and production technology reduce errors, reduce waste and have a tangible impact on the customer experience.

Find out more. Visit www.ncr.com/restaurants and see how our technology can help your business thrive.


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James Mwangi [ B OR N K E N YA ] Born in Kangema, Kenya, James Mwangi is the CEO of the financial organisation Equity Group Holdings Limited. The Kenyan banking institution reportedly had the largest customer base on the continent at more than 8mn. Ranked among the 50 Top Thought Leaders by the Financial Times, Mwangi’s leadership drives the Equity Group’s estimated annual revenue of more than $189mn and upwards of 6,000 employees. The former public accountant’s personal net worth reportedly stands at upwards of $170mn. He was named Forbes’ Africa Person of the Year, and Africa Philanthropy Award in 2012.

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Reginald Mengi [ B OR N TA N Z A NI A ] Reginald Mengi is the founder and CEO of one of the largest media organisations in Africa, the IPP Group. Comprising print media, TV and radio stations, digital and other assets, IPP dominates the industry. Mengi also has a holding in a precious metals mining operation known as IPP Resources. The company also produces Tanzania’s top-selling native water: Kilimanjaro bottled water. Born in the Kilimanjaro Region of Tanzania, he has a net worth of $400mn and is widely known as a leading philanthropist in his native country. Notably, he established the Mutie Foundation that funds children’s heart transplants. He earned the United Nations NGO Lifetime Achievement Award in 2012, and Business Leader of the Year Award in 2014, among many others. AUGUST 2019


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Maria Ramos [ B OR N P OR T UG A L ] Born in Lisbon, Portugal, Maria Ramos is the CEO of Absa Group Limited, South Africa’s largest bank. The Johannesburg-based conglomerate serves upwards of 15mn customers across 11,000 facilities. She has repeatedly been named in both Forbes and Fortune magazine’s 50 Most Powerful Women in Business. Ramos is the chairwoman of the Banking Association of South Africa, sits on the Executive Committee of the World Economic Forum’s International Business Council, as well as the Board of Business Leadership South Africa. As CEO of Absa Group Limited, a Barclays subsidiary, the organisation employs more than 40,000 people and generates an estimated annual revenue of $4bn. Ramos earns the highest banking executive compensation in Africa at a reported $28mn. mid dl e e a s t . b u s in e s s c hie f. c o m

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Femi Otedola [ B OR N NIG E R I A ] Born in Ibadan, Oyo State, Nigeria, Femi Otedola is the chairman of Forte Oil PLC, previously called Africa Petroleum. Before entering the petroleum sector, he founded an investing institution known as CentreForce and has an ownership stake in Swift Insurance. He holds a net worth exceeding $300mn, and Forte Oil employs 400 people while generating annual revenue estimated at nearly $270mn. His philanthropy work includes donations to the Michael Otedola University Scholarship.The scholarship has positively impacted more than 1,000 students, and Otedola has personally donated funds to complete Nigeria’s primary place of Christian worship, the National Ecumenical Centre in Abuja. AUGUST 2019


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Strive Masiyiwa [ B OR N Z IMB A B W E ] Strive Masiyiwa is the chairman and founder of Econet Wireless, an African-based telecommunications corporation. Born in Zimbabwe, he has a net worth exceeding $2.3bn and has earned a reputation for philanthropy. He is an influential board member of the Rockefeller Foundation, Africa Progress Panel, Morehouse College, Conrad N. Hilton Foundation, and Ashinaga organization. As a business visionary, he forged ahead with Econet to provide users with the ability to make cash transfers at a time when most of Zimbabwe did not have cellular service. His leadership resulted in Econet employing more than 5,000 people and generating annual revenue of $3bn.

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Patrice Motsepe [ B OR N S OU T H A F R IC A ] Born in Ga-Rankuwa, South Africa, Patrice Motsepe is a mining businessman and founder of African Rainbow Minerals. With a reported net worth exceeding $2.4bn, Motsepe ranks among the top 10 wealthi88

est people in South Africa. As executive chairman of African Rainbow Minerals, his organisation employs more than 24,000 people and generates upwards of $720mn in annual revenue from mining precious metals such as gold and platinum. He also sits on the board of Harmony Gold, one of the world’s largest gold mining operations. In 2003, he purchased the Mamelodi Sundowns football club and reportedly committed to donating half of his wealth to charity through The Giving Pledge in 2013.

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Alhaji Aliko Dangote [ B OR N NIG E R I A ] Aliko Dangote ranks among the most influential CEOs and wealthiest business leaders in Africa. Born in Kano, Nigeria, and considered to have an estimated net worth exceeding $10.6bn, he is recognised as the wealthiest person in Africa in 2019. He is CEO of Dangote Group, a commodities company that trades in rice, cement, sugar and a wide range of commodities in Nigeria and other West African nations. His business success placed him on Forbes’ Richest People in Africa list and he was named the business publication’s Africa Person of the Year in 2014. The Dangote Group reportedly employs more than 30,000 in Africa and posts revenue upwards of $4bn annually.

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IT'S NOT JUST AN AIRLINE. IT'S ISRAEL

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EL AL ISRAEL AIRLINE NAVIGATING DIGITAL T TO BECOME A ‘SMART WRITTEN BY

AMBER DONOVAN-STEVENS

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PRODUCED BY

K ANE WELLER


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ES: TRANSFORMATION AIRLINE’ mid dl e e a s t . b u s in e s s c hie f. c o m

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EL AL ISRAEL AIRLINES

SHAHAR MARKOVITCH, THE CHIEF DIGITAL AND INFORMATION OFFICER OF EL AL ISRAEL AIRLINES, EXPLAINS HOW THE ADOPTION OF AI AND DATA ANALYTICS IS STRENGTHENING EL AL AS THE ‘SMART AIRLINE’ OF THE STARTUP NATION.

E

L AL is Israel’s national airline, boasting close to 6mn customers a year and US$2bn in annual revenue. Before joining

EL AL as the airline’s Chief Digital and Information Officer, Shahar Markovitch was the Chief Digital 94

Officer of Bank Hapoalim, one of Israel’s largest banks. Prior to that, he was a partner of the consulting firm McKinsey & Company, and as such brings experience of shaping the digital strategy and leading digital and IT transformations of organisations all over the world. A little over a year ago, Markovitch brought this expertise to EL AL to assist in the creation of a new division that combines IT and digital to drive the technological transformation of the company. Markovitch begins by sharing that there are two key disruptions in the airline industry today. The first is “the digital airline, which is a combination of both new business models like the low-cost carrier model with new open sky regulation.” Secondly, he adds that “the customer is becoming more digital”, with access to dozens of options for booking their flight. Yet Markovitch also says that there is a new AUGUST 2019


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EL AL ISRAEL AIRLINES

revolution hurtling towards the airline

airlines are one of the industries to

industry: the ‘smart airline’ revolution

benefit most from AI and machine

- major disruption fueled by a combina-

learning technologies,” he says.

tion of data and machine learning.

“When we built our strategy for EL AL’s

A key component of a smart airline

technology and digital transformation,

is the ability to leverage AI, machine

we realised that we need to win in these

learning and analytics to deliver a better,

two fronts at the same time. On the one

more personalised customer experi-

hand, we had to fully transition to a

ence, drive revenues and profitability,

‘digital airline’ to remain competitive,

and improve operational efficiency.

on the other hand, we must build capa-

“According to research, due to the

bilities for becoming a smart airline

massive complexity of the business,

in order to remain ahead of the next

96

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CLICK TO WATCH : ‘EL AL ISRAEL AIRLINES: MILESSTONES’ 97

disruption.” EL AL also realised that one of its main differentiators in the technology space is the fact that it is the airline of

native” capabilities in its day to day life? 3. How do we make ELAL’s “IT factory” a competitive differentiator?

the ‘startup nation,’ being immersed in ecosystems in the world. This gave birth

1. IMPACT OF TECHNOLOGY AND ROADMAP FOR THE ‘SMART AIRLINE’

to its vision of becoming the smart airline

EL AL started with defining a clear

of the startup nation.

roadmap on how technology as a

one of the most vibrant tech and startup

To achieve this vision, the company

whole will transform the company.

defined a transformation plan centered

“This is what our business should

around the following questions:

look like in the future across all areas

1. How will technology affect every aspect of our airline operations? 2. How will EL AL infuse “digital mid dl e e a s t . b u s in e s s c hie f. c o m

of operation, from front to back – anything from having leading digital websites all the way through having a f r ic a . b u s in e s s c hie f. c o m


Don’t guess how people feel about your business. Let them tell you. Experience Management is here. Understand what your customers are feeling and act on it. sap.com/XM Š 2019 SAP SE or an SAP affiliate company. All rights reserved.



LET’S MOVE THE WORLD, TOGETHER At SITA we’re co-innovating with customers to give passengers greater control over their travel experiences. Through increased self-service options and more real-time information we’re ensuring they’ll enjoy more seamless journeys through the airport. Because when air travel is simple, it has the power to move passengers emotionally as well as physically. sita.aero


automated back-end operations to

nance of its planes. As components to

dynamic and smart routing and giving

planes are expensive, aircraft are

our employees better smart digital

regularly maintained. Every few

tools,” says Markovitch. Given the

months each plane is taken apart and

importance of operational excellence

reassembled again to inspect all of its

for airlines, a large part of the roadmap

components. To manage this, Marko-

addressed these areas. For example,

vitch explains, EL AL has implemented

one of the areas where EL AL sees

a system designed by Swiss Aviation

huge potential for leveraging technology

called AMOS, which digitised the

to transform operations is the mainte-

end-to-end maintenance process.

E XE CU T I VE PRO FI LE

Shahar Markovitch Shahar Markovitch is Chief Digital and Information Officer of EL AL Israel Airlines as of March 2018. Shahar joins El Al from Bank Hapoalim, Israel’s largest bank, where he served as Chief Digital Officer, responsible for digital strategy and roadmap, customer experience, digital platforms, and all digital related projects. As part of his role there, Shahar launched a number of award winning digital products, including bit, Israel’s largest p2p payment app. Previously he was a partner in McKinsey & Company, focusing on digital, technology, and innovation, and leading digital transformations for the world’s leading organisations. Before McKinsey, Shahar held technology and leadership positions in a number of Israeli high-tech startups and Partner communication. Shahar holds a Bachelor of Science degree with distinction in Computer Science and Math from the Hebrew University in Jerusalem and a Master in Business Administration from MIT in Cambridge, USA with a 5.0/5.0 GPA. He was recognised as Israel top 100 inf luential people in digital for 2017.

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EL AL ISRAEL AIRLINES

“ A KEY COMPONENT OF A SMART AIRLINE IS THE ABILITY TO LEVERAGE AI, MACHINE LEARNING AND ANALYTICS TO IMPROVE THE AIRLINE WITH THE EXTRACTED DATA” 102

— Shahar Markovitch, Chief Digital and Information Officer, El Al Israel

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104

C O M PA N Y FACT S

• One terabyte of data is generated from every flight” • EL AL is Israel’s national airline boasting close to 6mn customers a year, and US$2bn in annual revenue

AUGUST 2019


EL AL is also extending this system to create a fully paperless maintenance process where all of the ground technicians will use tablets for maintenance activities. Another example is end-to-end management of finances and process management. “We are working with SAP to digitise, automate and create the technology backbone for our entire finance and procurement operations, including some of our warehouse management activities,” says Markovitch. This allows agreater streamlining of operations, saving time and money.

2. INFUSING “DIGITAL NATIVE” CAPABILITIES IN THE DAY TO DAY LIFE OF THE AIRLINE As part of the transformation, EL AL is focusing on embedding “digital native” capabilities that are a must have for every company operating in the digital age in the areas of customer experience, digital platforms, and data and analytics. “We start with customer experience, and how our plan fits with the end to end customer journey,” Markovitch explains. “It’s about how we leverage methodologies like design thinking to drive the actual value mid dl e e a s t . b u s in e s s c hie f. c o m

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$2.1.bn Approximate revenue (USD)

business makes, and using insights to increase profitability. These capabilities work together to deliver innovative digital products to EL AL’s customers. For example, customer

1948

Year founded

6,000

Approximate number of employees

research showed that one of the issues for customers traveling abroad is the cost of a taxi to the airport. As a response, EL AL developed an innovative digital platform called “Taxi Pool”. This is one of the first services of its kind, designed to facilitate sharing taxis for customers who travel from the airport to the same hotel or hotels in close proximity. The system connects people who are

proposition that we offer our customers

taking the same flight, matching up

as part of our overall transformation

groups who can pool a taxi to save

roadmap.” Then EL AL considers its

money. This service is provided by EL

digital platforms, which includes not

AL to customers all over the world, no

only upgrading its digital channels but

matter what airline they are using.

also transforming the way the company

These capabilities are further

thinks of and develops these channels,

accelerated by implementing startup

moving from “a project view of the world,

technology solutions. One example is

to a product view of the world” with the

a hybrid chatbot EL AL launched to

aspiration of operating like a “native

assist customers, which can be

digital player”. The last value multiplier is

accessed through WhatsApp or

leveraging data and advanced analytics,

Facebook Messenger. The hybrid bot

which Markovitch says is essentially

mixes state of the art AI with human

managing data as an asset, embedding

support. Should the bot be unable to

data-driven tools into every decision the

provide a solution to the customer,

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AMOS. AGAIN.

AMOS, the world-class M&E software solution, supports EL AL’s vision to become a paperless company. Swiss-AS recognizes EL AL as one of the early adopters when it comes to digitizing and then later digitalizing all maintenance processes. EL AL is a customer that is investing a lot of effort in fully understanding the potential that lies in AMOS and exploiting it to the maximum.

“ Implementing AMOS in our organization enabled us to have end to end solution with full transparency of M&E processes & costs. We can now better control the work in all our departments, improve our inventory management and establish better automated connections to our customers and suppliers. AMOS enables us to constantly improve our processes to be lean & efficient.” EL AL’s Department Manager SW implementation in M&E

SWISS-AS.COM

member of the support team, without

3. TURNING THE IT FACTORY TO A COMPETITIVE ADVANTAGE

the customer ever needing to be aware

Markovitch highlights that the third pillar

of this shift. Another example of a

of the company’s digital transformation

digital platform that combines data and

is upgrading its technology factory. This

analytics with advanced data analytics

focuses on transforming the entire

is Bid2Fly. This solution uses data

technology stack to enable faster time

analytics to analyse low sale flights

to market and greater flexibility while

and combine that with the buying

ensuring resilience and security in

patterns of a customer. If a customer is

everything EL AL does. Part of this

unlikely to buy a flight, they have the

includes moving towards a more agile

opportunity to save up to 50% on a

way of working and changing the

flight by bidding on it at auction that

software architecture and infrastructure.

may not have sold at all otherwise.

In this activity as well, the focus is on

there is a seamless connection to a

AUGUST 2019


bringing business value and competitive

flexibility the business demands.

advantage through the technology

EL AL has also implemented a Big Data

factory. For example, “How do we

solution based on Cloudera. “The

enable better services for our custom-

queues, the various dates, and the

ers through API and open systems?

analytics we run on the Cloudera

What value can we bring by accelerating

infrastructure are to decide what kind of

our move to the cloud, and how will the

marketing message we should provide,

automation of our IT operation improve

and how to better appeal to each

our customer satisfaction?”

customer,” he explains.

When faced with the goal of creating a

As EL AL looks to the future,

more personalised customer experience

Markovitch says that there is already a

using its Adobe marketing automation

lot in the pipeline. After a recent upgrade

solution, the focus was on finding a

to the mobile app, the company has

solution that could process large

launched a new website, which will

amounts of data but also provide the

improve upon customer engagement and allow customers to access and better understand their frequent traveller miles. Additionally, the airline is acquiring new planes, including the Dreamliner 787, which are being equipped with Wi-Fi. “Overall, we’re going through quite a lot of changes and technology is a vital part of these changes.” With a clear path set, it is without a doubt that EL AL will continue to strengthen its position as the ‘smart airline’ of the startup nation.

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TURN EVERY CUSTOMER INTO A NEW CUSTOMER.

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BANKING IS LIVE. With SAP for Banking, you can bring every customer the right products and services at precisely the right time. By predicting their needs–live and in the moment. So you can build lifelong relationships, one customer at a time. sap.com/livebusiness


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