MIDDLE EAST & AFRICA EDITION JULY 20 19
Leveraging technology in insurance
Adding flavour to customer experience
REDEFINING LUXURY HOSPITALITY THROUGH DIGITAL TRANSFORMATION Willem Both discusses the use of technology to impact guest experience
TOP 10
City Focus
A commercial and cultural gateway
biggest companies in the Middle East & Africa
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FOREWORD
A
s the new Editor-in-Chief for
to transform the insurance industry.
Business Chief Middle East &
He also spoke with Khalil Feghali,
Africa, I am very excited to introduce
Senior Procurement Associate/
our July edition, which is packed with
Assistant Director of Procurement at
the latest business and technological
LAU, on the supply chain strategies
advancements across the regions.
implemented by his organisation
In this month’s issue, Laura
in order to sustain higher
Mullan speaks to Willem
education in Lebanon.
Both, the Executive Vice
In addition, Business
President, Information
Chief explores what
Technology, at Kerzner
makes Jeddah the
International about how the company combines
economic hub for Saudi
Willem Both, Kerzner International
Arabia, as well as looking
innovative entertainment and disruptive technology to
at the top CEOs across the region. Our leadership
deliver truly luxurious world class
piece features an exclusive interview
hospitality. “We’ve drawn insights from
with Chief Technology Officer Ramzi
our data and empowered colleagues
Alqrainy of Opensooq, who shared
by giving them the information that
with Business Chief the technical
they need to deliver an incredible
innovation that makes the company
experience,” he comments.
stand out.
Elsewhere, Sean Galea-Pace sat down with Waheed Y Khayyat, CIO of
Enjoy the read!
United Cooperative Assurance, to
Amber Donovan-Stevens
discuss how his firm utilises technology
amber.donovan-stevens@bizclikmedia.com
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CONTENTS
12 Where luxury hospitality and innovative entertainment meets disruptive technology
28
40 HOW IS DIGITAL TRANSFORMATION REVOLUTIONISING THE SUPPLY CHAIN SECTOR?
How OpenSooq is transforming the classified advert market with AI
in T N A H P E L E The : m o o r l a t i g e di th d e n n a l p n u ime t n w o d
52 62
72 City Focus
Jeddah
82 Social impact: balancing profit and purpose
TOP 10
biggest companies in the Middle East & Africa
96
BKW AG United Cooperative Assurance
110 Pizza Hut
124 Lebanese American University
138 Barclays Bank Mauritius
152 ImpactAgri
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Where luxury hospitality and innovative entertainment meets disruptive technology 13
WRITTEN BY
LAURA MULLAN
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PRODUCED BY
K ANE WELLER
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K E R Z N E R I N T E R N AT I O N A L
Willem Both, EVP, Information Technology, describes how digital transformation is supporting the luxury hospitality Company
F
or as long as he can remember, Holland native Willem Both has been fascinated by the hospitality industry. “When I was
a teenager, I think my mum tried to dissuade me from the industry by finding me a job washing dishes at a Dutch pancake house,” he jokes. “If anything, it had the exact opposite effect – I loved it. I love the energy and the comradery and I’ve been 14
in the hospitality industry ever since.” A few years later, Both earned a Hotel Management degree from an esteemed hotel management school and began working across the globe for some of the industry’s most prestigious hotel brands like Marriott, Sheraton and Starwood. He worked his way from hotel operations towards hotel IT and corporate IT project management, and in doing so has carved a unique career path as a life-long hospitality professional. Then, Both was ready for a new challenge and, when an opportunity came knocking, Kerzner International seemed to be a perfect fit. Kerzner sought a way to digitally transform its operations and, with an impressive 26 years of hospitality experience, Both had the necessary know-how to take on the challenge as Executive Vice President of Information Technology, leading IT for Kerzner globally. J U LY 2 0 1 9
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CLICK TO WATCH : ‘ATLANTIS SANYA GRAND OPENING – #WHEREWATERMEETSWONDER’ 17 “Kerzner is a pioneering luxury
With 11 resorts under its umbrella
hospitality business and we’re con-
and more in the pipeline, Kerzner
stantly redefining what ultra-luxury and
International has a portfolio that packs
entertainment mean,” Both explains.
a punch. It’s responsible for renowned
“Our guests and colleagues are using
brands like One&Only Resorts, Atlantis
technology every day. Whether it’s
and Mazagan Beach & Golf Resort,
mobiles, laptops or smart appliances,
with properties spanning Mexico,
technology has permeated throughout
Mauritius, the Maldives, South Africa,
society. Our guest experience is at the
Rwanda, Dubai and Australia. Regard-
centre of everything we do and we want
less of the location, one thing is certain:
to support their needs into the future.
creating a world-class guest experience,
With the creation of my role over two
detail by detail, is in the company’s
and a half years ago, we realised that
DNA. Technology and data have been
we needed a global head of IT to focus
valuable tools in making this vision a
on the group’s strategy and direction.”
reality and perhaps this can be best
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seen by the company’s innovative guest
their coffee or if they would like to read
service system. Currently under develop-
a newspaper on a Sunday, for example.
ment, Both says this bespoke application
“A lot of it is based on relationships that
will use a wealth of data “to allow our
we’ve built over the years and guests
colleagues to optimally serve our guests”.
feel comfortable. We are actually in the
“Our guests consistently have an
process of building a custom application
incredible experience at our resorts
rather than using an off the shelf one,
and we want to make sure that we
because we want to make sure we
extend that experience beyond any
translate all these personal relationships
single resort , so that if a guest were to
that have been solidified and that we
visit another one of our properties,
are able to capture that information
then we would know how best to serve
properly and securely.”
them,” he explains. This data may allow the team to know how guests prefer J U LY 2 0 1 9
Yet, Both doesn’t take the task of handling data lightly. “With data comes
E XE CU T I VE PRO FI LE
Willem Both, Executive Vice President, Global Information Technology Willem Both is responsible for the company’s Information Technology strategy and works with the other Excom team members and IT leaders of Kerzner on adoption and implementation of the best practice Information Technology initiatives that support the vision of the company. This key role is critical to delivering that vision – amazing experiences and everlasting memories. In his position, Both ensures the delivery of an integrated guest experience for all brands in Kerzner International and is responsible for the entire IT team at the Global Office in Dubai. He is focused on enhancing the Information Technology strategy and technology at all Kerzner properties, including Atlantis resorts, Mazagan Beach & Golf Resort as well as all One&Only resorts worldwide, and new properties as the Company continues to grow and expand into new destinations. Both’s passion is guiding open team collaboration to achieve optimal performance through improved processes and sharing best practices.
“ With data comes responsibility”
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“Kerzner is a pioneering luxury hospitality business and we’re constantly redefining what ultraluxury and entertainment mean” — Willem Both, Executive Vice President, Information Technology Kerzner International
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With the travel & hospitality industry being redefined, Hexaware aims to create a visually pleasing and personalized experience to help our clients achieve “customer centricity�, making dream destinations a reality!
Learn More E-mail: marketing@hexaware.com Website: hexaware.com
responsibility,” he asserts. “Security is
linchpin in the company’s security
on our minds 24 hours a day.” As such,
strategy. “It’s really about creating
Kerzner International has put its weight
layers of defense to prevent and
behind security investment, whether
mitigate attacks and a lot of that comes
it’s in the areas of central infrastructure,
with education,” he adds.
communications or at the hotels.
On top of this, Kerzner International
Additionally, the company is also
has recently introduced a new intranet,
planning migrations to cloud in a bid to
is currently completely rewriting its
bolster security while creating disaster
central reservation systems, and
recovery and meet the peaks and
revamping its websites and content
troughs of demand on its website. All of
management systems. This root-and-
this has culminated in a robust security
branch transformation has not only
footprint, however Both also highlights
had an impact on the guest experience,
that education has been an important
it’s revolutionised the employee 23
CLICK TO WATCH : ‘ONE&ONLY RESORTS LE SAINT GÉRAN – SHE’S BACK!’
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experience too. For instance, Both outlines how Kerzner has reorganised its team and increasingly adopted collaboration tools which allow the business to better communicate with its global properties, shortening geographical distances and driving efficiency. “There are no more regular telephones; instead everyone uses collaboration tools,” notes Both. “Our properties are all around the globe –these tools have been invaluable.” Any technology professional will tell you that forging the right partnerships is critical to any successful business transformation. This rings true at Kerzner too; the company has worked shoulder to shoulder with several technology businesses such as Hexaware, which Both describes as a “critical partnership”. “Having trusted partners like Hexaware is very important, especially for a company like us which isn’t a cookie cutter business,” he says. “We’ve worked very closely with companies like Hexaware to develop and maintain our customer applications. It’s been an incredible journey so far and we couldn’t have done it without them.” mid dl e e a s t . b u s in e s s c hie f. c o m
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K E R Z N E R I N T E R N AT I O N A L
10,000+
Approximate number of employees
1993
Year founded
HQ
Dubai, United Arab Emirates
Whilst the journey may be far from over, Both says Kerzner is already beginning to reap the fruits of its labor. “We strongly feel that we’ve been providing much better service to our internal customers, our resorts, and our guests,” he says. “We’ve drawn insights from our data and empowered colleagues by giving them the information that they need to deliver an incredible experience whereby guests immediately feel like they’re coming home.” Personalisation in the hospitality industry is nothing new, but the data
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age has taken the idea to new heights.
Having just opened two more resorts
Both predicts that this trend will continue,
– One&Only Nyungwe House in Rwanda,
but while technology will become more
and Atlantis in Sanya – it seems Kerzner
pervasive in the hospitality industry it
International is set to continue on its
won’t be able to replace that human
upward trajectory, powered by both
touch. “I think guests are going to
people and technology. The business
continue to expect more and more
has been selective when choosing
personalisation and automation, but
resort locations, technologies and even
Kerzner will still focus on delivering a
partners, and it’s clear that this
personal guest service through people
thoughtful, guest-centric approach
as well as technology. I feel my role
has distinguished it from the pack.
is to enable our colleagues as much as possible to provide the most amazing customised service to our guests.” 27
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LEADERSHIP
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How OpenSooq is transforming the classified advert market with AI OpenSooq is constantly optimising its technology to deliver a tailored experience to its customers. In an exclusive interview, Chief Technology Officer Ramzi Alqrainy shares with Business Chief the ways in which AI is optimising the classified advert market WRITTEN BY
AMBER DONOVAN-STEVENS
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LEADERSHIP
O
penSooq is the largest classified application and web platform in the Middle East and North
Africa, serving 19 countries. Ramzi Alqrainy
has learned a lot since he has started with the
company in 2013 as a Data Engineer with a team of five people. Today, OpenSooq has more than 200 employees. Alqrainy heads a team of 41 people who are responsible for quality control, business intervention and APP, as well as application support for iOS, Android, and Windows. Over the years he has learned how to build a high-performance application. When asked about the company’s strategy, Alqrainy explains that first and foremost 30
priority is to gain subscribers. He notes the speed at which the market is changing, and the need for diligence across the regions. “Our strategy changes based on the region, and how we can get more users and understand them.” Alqrainy explained that the main factor that differentiates OpenSooq from its competitors is its commitment to technology: “We have one product manager, but we have 41 technology managers,” he explains. “We believe in technology just as much as the product.” While other major companies such as Flick invest US$500,000 a month in marketing, OpenSooq does not have the same financing. “We don’t have half a million dollars. So the only way to compete with them is through technology and the product,” says Alqrainy. He also notes that the company cannot afford masses of commercial J U LY 2 0 1 9
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“ If you want to move fast, you have to innovate” — Ramzi Alqrainy, CTO, OpenSooq
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“ Our strategy changes based on the region, and how we can get more users and understand them” — Ramzi Alqrainy, CTO, OpenSooq
technology and so relies on in-house innovation and creating solutions independently. When it comes to Big Data, Alqrainy emphasises the volume, velocity and heterogeneous nature of the information available to businesses today. In only a few months, OpenSooq can accumulate over 2bn in records. This data is in continuous use to optimise the user experience, create patches or offer real-time modifications to listings. “When you add a post in OpenSooq, you have a real-time dashboard to see how many calls, comments and views you get,” Alqrainy continued. “Our data edge is heterogeneous. We don’t have a structure as we have a lot of bigger sources with the data.” As this amount of data would be difficult for traditional software to interpret, Alqrainy explains, the company began developing AI capabilities to help use the data to provide a model for each country. “If you want to move fast, you have to innovate. Innovation comes from machine learning, building a newer network and applying the after trend and adjusting the markets.”
J U LY 2 0 1 9
CLICK TO WATCH : ‘OPENSOOQ’ 33 AI has also helped OpenSooq build
and the latest statistics suggest that
a more personalised user experience.
the average sell-time for an item on
Suggestions are made to users based
OpenSooq is 15 minutes. AI has also
on their previous purchases and
been used to create a help bot that can
searches. For listers on the marketplace,
answer frequently asked questions
OpenSooq has an engine in place
without human interaction. This will
to automatically suggest prices for
alleviate pressure on the customer
products. This has cut the average
care team, allowing them to focus on
time a user spends on this interaction
more complicated issues. Not only
from 10 minutes to only a couple of
does this save both time and money,
minutes, with reducing the amount
it improves the customer experience,
of time users need to spend with the
as the team can focus on
app a key element of introducing new
improvements and bigger fixes.
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One of the main challenges that OpenSooq has overcome is the a f r ic a . b u s in e s s c hie f. c o m
LEADERSHIP
adaptation of the app’s language to suit dialects across 19 regions. Alqrainy explains that each country is allocated a team, and he manages these teams personally. He went on to explain how each region has its own dialect, and though the language is very similar, many individual words have differing meaning across the regions. One of the recent challenges is the addition of Arabesi, a portmanteau of two words; “Arabic, which is Arabic and Ganesi, which is English – this means writing Arabic with English corrective.” 34
With smartphones dominating the market, OpenSooq was under pressure
CLICK TO WATCH : ‘ARABIC CONTENT WITH APACHE SOLR’
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to find a solution for payments as each region has its own specialised framework. “The main challenge OpenSooq faced was the low concentration of credit cards across the region and globe,” explains Alqrainy. “For example, in Saudi Arabia, the credit card is not allowed for religious reasons. This means you have to integrate with many different payment platforms to provide to the service for each country.” For
“ We believe in technology just as much as the product” — Ramzi Alqrainy, CTO, OpenSooq
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OpenSooq does have a mobile
rewards, store credits and buy various
wallet platform, but the main challenge
products and services. “We use our
the company faces is its customers’
wallet because there’s no solution in
distrust of online payments. “Customers
the market that can see one wallet can
would rather pay cash. They will come
merge with all these services, like SMS,
to the company or they will come to
cash payment, payment using credit
one of our partners and pay cash,
cards,” says Alqrainy. One card
or go to the bank to transfer money.”
provider that is trusted is KNET,
OpenSooq has implemented diverse
considered more trustworthy than
solutions to this issue, such as
credit cards in a number of regions.
including a cash option or sending
As Classified moves forward,
employees to collect the cash.
the experience needs to be more
OpenSooq also has an integrated
streamlined than ever. Another
ewallet that can be topped up to collect
challenge moving forward is
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scalability. Currently the team can
One of the milestones Alqrainy
maintain the current flow of user
hopes to achieve is the expansion
traffic, but as the application grows
of a highly skilled team, which has
exponentially, Alqrainy believes that
often struggled as competitors have
the company needs to “move fast”
scouted trainees with lucrative salaries.
and play it “smart and hard, so we can
With the team complete, there are
build the architecture to help us to go
exciting developments in the works
to the next level and go in the direction
for the future of the service.
of a concept serverless.” Serverless is a new server management concept which, as Alqrainy explains, allows companies to shift their operations to another provider. “So there is no server at the end of the day.” mid dl e e a s t . b u s in e s s c hie f. c o m
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TECHNOLOGY
40
HOW IS DIGITAL TRANSFORMATION REVOLUTIONISING THE SUPPLY CHAIN SECTOR? Vivek Wikhe, Domain Expert of Retail and Supply Chain at LatentView Analytics, discusses the future of supply chain management and the impact of digital transformation WRITTEN BY
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VIVEK WIKHE
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TECHNOLOGY
A
ll over the world, supply chains are disrupted by the advance of technology and leaders must rethink their strategies.
Business Chief caught up with LatentView’s Vivek Wikhe to find out how organisations can make the most of digital disruption to best serve the end consumer. Why must companies rethink their supply chain strategies in the age of digital transformation? There are major cascading factors contributing to companies rethinking their supply chain strat42
egies in the age of digital transformation. First, the demand side has changed rapidly. Today, there are more channels and touchpoints than ever before, which all serve different needs along the customer journey. This has resulted in a migration away from the way that demand has traditionally been generated. Invariably, it is the ability to service and optimise these new channels that allows companies to differentiate and gain a competitive edge. Organisations are no longer sure of the costs and margins in each channel that touches consumers, and are still figuring out which channels they need to service and promote in the digital era. Ensuring profitable margins across channels requires a well thought out supply chain strategy according to a company’s customer base and an J U LY 2 0 1 9
“ Ultimately,all organisations across industries must rethink their supply chain strategies as the digital era continues moving towards the diversification of channels� — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics
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TECHNOLOGY
44
optimised channel mix. Ultimately, all
a specific brand, which is easier to
organisations across industries must
predict based on demographics, (for
rethink their supply chain strategies as
example, purchasing Nike sneakers),
the digital era continues moving towards
they will typically begin their shopping
the diversification of channels.
journey by searching online for certain
 What are some immediate steps that need to be taken in order for
attributes and features that they want (“stylish white sneakers�). Organisations need to tune their
companies to maximise profitability
supply chains to reflect this shift. Instead
in their supply chains?
of serving a target market based on
Buying behavior is moving towards more
demographics, supply chains must take
nebulous attribute-based purchases.
into account a larger market brought
Instead of consumers focusing on
about by the digital era. Supply chains
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should evolve to fulfillment chains, which
supply and demand, supply chains need
can serve multiple channels profitably.
to get increasingly more agile and more
The first step to maximising profitability
in tune with short-term planning. Even
is to get a clear picture of order costs
traditional industries need to stay abreast
incurred in every channel. This is a com-
of quickly developing consumer trends
plex problem with multiple, co-depend-
and desires. For example, food and
ent factors. It gets complex because
groceries are a traditional and staple
the costs need to be predicted to ensure
category. However, today, there are
an enterprise has a profitable order
trends in food that pop up quickly, giving
fulfillment scenario. The analysis of the
traditional consumer buying behavior
cost structure and visibility to them is
a very short-term strength. Many cate-
the first step to maximise profitability
gories overall are moving towards the
for supply chains.
shorter-term life cycles, and enterprises need to move to reflect that as well,
What are the challenges that enterprises face as they move to digitise
and become leaner and more agile. Â
their supply chain, and what are
How does having better data strategy
a few best practices to overcome
create greater supply chain efficiency?
these challenges?
So much of demand is influenced by
The main challenge is that due to the
what consumers are seeing online - you
changing nature of modern consumer
essentially can predict what consumers
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TECHNOLOGY
are going to buy by having strong insights into data on what influences customer behavior. For example, a few years back, Amazon became famous for predicting demand. In fact, they were so good at it, that they were shipping goods before the customer even purchased them. All companies need to have a view of the latest technology for predicting customers purchasing behavior. As buying cycles continue to grow shorter, there is no longer time to procure and supply a product without advance 46
preparation. Ultimately, in order to not miss out on profitable opportunities, and to have a more focused organisation of the supply chain, a modernised data strategy that involves predictive analytics for both the supply and demand sides is necessary. A ‘better’ data strategy is one where enterprises have a single view of all data points and these are integrated to respond in sync with unit changes. An integrated data strategy helps move the fulfillment chain in three phases - increasing visibility thereby reducing variability and finally increasing velocity. All these three phases require a different yet integrated data strategy. J U LY 2 0 1 9
As enterprises continue through their digital transformation journeys, how are innovations in AI and predictive technologies specifically playing a role? Most enterprises on digital transformation journeys go through several stages, as they learn to apply machine learning and artificial intelligence. These stages are: descriptive, prescriptive, and predictive. In the first, you can only see what the data does, and it can help inform decisionmaking processes. In the second stage, you can employ an AI technology to gain prescriptive intelligence to solve specific problems or gain insight into definitive opportunities - for example, AI can identify demand per channel, or identify which models are the most profitable. In the third and final stage, you reach an exalted state of sorts wherein the ability to predict trends in the data becomes so accurate that it’s possible to preempt action around the insights. This final stage will lead to a much more focused and streamlined supply chain, and allow for comprehensive preemptive planning for all relevant supply and demand factors. mid dl e e a s t . b u s in e s s c hie f. c o m
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TECHNOLOGY
48
Are there any particular industries
What do you see as the biggest
which have the best opportunity to
trends going forward related to
gain a competitive advantage by
emerging technology in AI and the
adopting this technology before the
supply chain?
rest of their peers?
Going forward, I see a number of ways
I can’t think of any industry that should
that emerging technology will continue
not be investing in emerging technology
to influence the supply chain. The next
solutions. In fact, it is no longer really
step in using data in the supply chain
a question of competitive edge, but
will be merging all sources of customer
rather of survival. If you’re not investing
data, including social media data. Down
in emerging technology and at least
the line, we’ll be looking at more IoT
exploring opportunities with AI, you’re
data. In coming years, we expect to see
making yourself vulnerable to other
the rise of the intelligent home assis-
companies in the field that may have
tant as the first point of understanding
higher efficiency and greater analytical
consumers and the supply side. Informa-
abilities (and thus a greater competitive
tion on demand signals will no longer
advantage) in their supply chain.
be coming directly from consumer
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“ The main challenge is that due to the changing nature of modern consumer supply and demand,supply chains need to get increasingly more agile and more in tune with short-term planning” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics
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TECHNOLOGY
“ I can’t think of any industry that should not be investing in emerging technology solutions. In fact,it is no longer really a question of competitive edge, but rather of survival” — Vivek Wikhe, Domain Expert of Retail and Supply Chain, LatentView Analytics 50
data, but rather personal assistants inside the home. On the logistical side, I expect we’ll also be seeing a greater ability to deal with smaller markets. Once analytics helps optimise supply chains to a greater degree, things such as home delivery models will become profitable, even for smaller markets and chains. The overwhelming trend will be intelligent assistants embedded in various enterprise chains interacting with each other to ensure regular chores are carried out without constant human intervention J U LY 2 0 1 9
Are there any recent projects LatentView Analytics has worked on related to supply chain analytics that you can discuss? Currently we’re working on several interesting projects. We’re helping some big name retailers understand how in an omni-channel environment they can understand their net cost for every consumer channel. There are certain aspects where it becomes not just a supply chain solution. Once you understand the optimal channel mix, you also have to take into account downstream promotion, and make the data actionable and profitable. We’re also doing some work in supply chain and predictive analytics. In the US market, over the past two years, there have been more occurrences of incorrect delivery windows, due to shortages of supply. This creates both a greater cost to the company, as well as operational inefficiency. We’re now looking at a predictive model that compiles and analyses data to help more accurately predict arrival times of packages for consumers.
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PEOPLE
n i T N A H P E L E e Th : m o o al r 52
t i g i d e th d e n n unpla e m i t n w do
Mark Homer, VP Global Customer Transformation, ServiceMax , discusses how businesses must improve asset management and servicing to reduce unplanned downtime pressure due to a growing reliance on automation and digital transformation
WRITTEN BY
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MARK HOMER
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A
s industrial automation continues to digitse, one area in particular is becoming a critical area of concern–
unplanned downtime. The shift to outcomebased business models, equipment assets becoming more sophisticated and connected,
and of course, the pervasive and increasing reliance on machines, are all adding to the pressure to avoid outages. Mitigating downtime is now a strategic priority in the digital age. Take power as an example. In the US, generating units are unavailable on average for 15% of 54
the time due to outages and maintenance. In fact, 6% of the time they are unable to meet demand at all. And the Energy Information Administration highlights that a further 6% of electricity is lost in transmission and distribution due to both technical factors and outages. The growing reliance on automation is already widening performance gaps. Businesses are losing sight of assets, especially in terms of efficiency, leading to a fractured insight of manufacturing or service delivery. The upshot is that unplanned downtime becomes a real problem and even worse, the lack of visibility leads to an unnecessary lengthening of recovery time. Closing this downtime gap is a fundamental step in an organisation’s digital maturity, and a core part of their transformation journey. J U LY 2 0 1 9
“ The growing reliance on automation is already widening performance gaps” — Mark Homer, VP Global Customer Transformation, ServiceMax
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PEOPLE
According to a recent Vanson Bourne global study After The Fall: Cost, Causes and Consequences of Unplanned Downtime, 82% companies have experienced at least one unplanned downtime outage over the past three years, and two on average. These outages have lasted four hours. Depending on the company and type of equipment, this can cost organisations anywhere from $50k-$150k per hour for say, a medical device company, and up to $2m for a major outage on an industrial critical asset. (Aberdeen estimates the cost across all businesses
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to be $260,000 an hour). The research also revealed high levels of asset estate ignorance across organisations, with 70% of companies lacking full awareness of when equipment is due for maintenance, upgrade or replacement. In addition to financial losses, the research found that almost a third of respondents said they were unable to service or support specific equipment assets, while 65% of respondents from the energy and utilities sector, and 62% from the medical sector cited losing the trust of their customers as J U LY 2 0 1 9
CLICK TO WATCH : ‘SERVICEMAX DAY IN THE LIFE OF TECHNICIAN OVERVIEW’ 57 a possible impact of suffering a high-
industrial digital strategies. Key to this,
profile incident or disaster. Across all
is an understanding of and investment
sectors, around one in ten admitted
in field service management and asset
their company would never recover
performance management capabilities.
from such critical incidents and would
According to Vanson Bourne, eight
ultimately cease to exist. Nobody wants
in ten companies have already
to be blindsided with those sorts of
recognised this, at least that digital
numbers. But what are companies
tools can improve visibility of assets
doing about it?
and help eliminate unplanned down-
The research hints at a tipping point
time. Around 50% of companies
in recognition of the problem and
confirmed they plan to invest in field
planned investment to address it. Over
service and asset management
time, zero tolerance and zero unplanned
technologies in the next three years,
downtime will become the norm as
while 72% of firms claim that zero
companies develop and invest in their
unplanned downtime is now a number
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one priority. So, the message is sinking in at least. The challenge for most businesses is to digitally transform without losing oversight of key products, services and of course assets. Digital transformations do not automatically improve control and visibility. Companies need to pursue a service-led approach to business, to ensure that their ability to manage the actual assets that make products or ensure services run smoothly are always up and running. A clear asset management and predic58
tive maintenance strategy should ensure that businesses take the right path towards reducing, if not completely eliminating downtime. Understanding problems before they happen and having knowledgeable
within the next two years and you have a recipe for transformation. We often hear the phrase, ‘you cannot
and digitally-empowered service tech-
account for human error’ but that seems
nicians to ensure the smooth running
illogical in today’s connected world. We
of assets will go a long way to making
have the technology to not just account
this happen. A digital twin of physical
for human error but to eradicate it. The
assets will help considerably here, and
internet of things with the proliferation
the research has revealed that around
of affordable and reliable sensors is
54% of companies are planning
changing the way in which we can view,
to invest in a digital twin by 2020.
manage, service and support technol-
Throw-in the fact that field service
ogy, processes and any physical object.
is expected to become a primary
By mirroring a process, product or
revenue driver for most businesses
service into a virtual world, we can
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create environments in which machines
turbines. Easy access to this combination
can automatically analyse performance,
of deep knowledge and intelligence
warn of impending issues, identify
about your assets paves the road to
existing or potential errors and even
wider optimisation and business
suggest part upgrades or changes to
transformation.
procedures to make them more efficient.
Digital twin technology spans across
This is the digital twin idea. As a con-
all industries where the value is in assets
cept, it’s been around for a while (NASA
and more generally complex systems.
used it on early space missions) but the
Its ability to deliver early warnings,
emergence of IoT has made it a com-
predictions, and optimisation is fairly
mercial reality. Digital twin eliminates
universal. In time, I think we’ll see the
guesswork from determining the best
concept of a digital twin to be applied
course of action to service critical
to human beings as well, playing a sign-
physical assets, from engines to power
ificant role in healthcare.
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“ Digital twin technology spans across all industries where the value is in assets and more generally complex systems” — Mark Homer, VP Global Customer Transformation, ServiceMax
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However, just mirroring is not enough. If the aim is to achieve zero downtime or at the very least, overall insight into on-going product and process performance, the digital twin has to be analysed and that analysis has to feed other functions. What the digital twin produces, when bundling data with intelligence, is a view of each asset’s history and its potential future performance. The digital twin can use historical data and current data to provide a complete picture of a particular asset, its past performance, what it should be J U LY 2 0 1 9
achieving now and its likely end of life date, when it would be predicted to be less efficient. This sort of knowledge is gold dust for product designers and manufacturers as it can feed back accurately, which parts work well and where machines would need improving or upgrading. Combined with the knowledge of field service professionals this makes for a powerful tool for upselling products and services to customers. Any new ideas or enhancements can be fully supported with data analysis and perhaps even simulations to illustrate how new parts and functions would improve performance. It offers justification and also accountability and should cut through irrelevant or unsuitable product or service ideas. It’s transforming service at the edge by bringing together all the facets that make businesses and machines tick - and goes a long way to creating a world of zero unplanned downtime.
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S U S TA I N A B I L I T Y
62
Social impact: balancing profit and purpose Natasha Mudhar, Global CEO of Sterling Group and The World We Want, discusses why CSR should be a company-wide initiative rather than just ticking a box WRITTEN BY
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NATASHA MUDHAR
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W
hile most corporates and
CSR is a means for companies to
businesses have imple-
bring benefit to themselves and employ-
mented a social impact
ees whilst also benefiting society. While
strategy, many are typically incongru-
businesses are becoming increasingly
ent with the company’s profitability
aware of the benefits of having such
and growth objectives, and are often
a strategy, they are still lacking in aware-
rendered obsolete. Effective social
ness as to how deep a social impact
impact strategies need to be ingrained
strategy needs to be embedded in
in the very fabric of a company’s
a company and why it needs to be
corporate DNA, and not just a tick in
embraced in this way.
the box. Companies are still failing to
A global study by the SEFORIS project
grasp how having an effective social
(the world’s largest study of social
impact strategy is key to long term
enterprises to date) has revealed how
growth and viability.
companies delivering inclusive growth
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by implementing a social impact strategy
purpose alongside each other. In order
are also seeing rapid growth in revenue.
for a company to truly thrive, it needs to
Effective social impact strategies are
be both profitable and purposeful
designed to improve a company’s overall
simultaneously. An organisation that is
mission, not just its brand identity. Not
both profit and purpose driven provides
to be confused with marketing or
mobility to its employees and resourc-
corporate philanthropy, social impact
es in a way that is incomparable. For
strategies provide a concrete plan that
a business to grow, purpose needs to
has quantifiable business outcomes
be embedded in its core. Companies
combined with a measurable and defin-
need to do well by doing good.
itive societal impact. It is no longer enough to be just profit
In order to address this, companies must fully understand how their employ-
driven. What makes companies stand
ees can be one of their biggest assets
out is their ability to place profit and
to expand their social impact footprint.
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“ CSR is a means for companies to bring benefit to themselves and employees whilst also benefiting society” — Natasha Mudhar, CEO, Stirling Group and The World We Want
Exhibiting a strong social impact strategy not only enhances trust among the public and makes the company attractive to prospective employees but also results in a more engaged workforce, geared to generate not only revenue, but valuable channels for marketing and public relationships. The people of a business provide the most genuine representation of a company’s brand and value, organisations need to remember this when considering social impact.
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Employees are much more engaged
and are not measurable against an
and satisfied when given the opportu-
embedded, well-implemented social
nity to perform impactful work. This will
impact strategy, focusing on the day-
result in a stronger feeling of fulfilment
to-day contributions towards community
and purpose amongst employees and
engagement as opposed to the occa-
essentially enhance a positive impact
sional donation or charitable event.
in the workplace. Studies have shown
Scaling up social impact needs to be
how corporate social responsibility has
a multi-sector process. Effective cross-
been highlighted as one of the key most
sector collaboration will enable new
important drivers of employee engage-
techniques and approaches to be
ment, and engaged employees are
deployed to achieve better social
effective workers and drive results.
outcomes. The combination of public,
Weak outreach efforts to the community should no longer be acceptable
private and social sector collaboration can address complex social challenges
E XE CU T I VE PRO FI LE
Natasha Mudhar Natasha Mudhar is an international communicator and director working on some of the most socially relevant global campaigns. She is also Global CEO of Sterling Media, the multi-disciplinary, international business consultancy with a robust communications backbone, established in 1995. Representing SMEs, FTSE 100 companies including billion-dollar hedge funds, as well as disruptors, innovators and high-profile celebrities, Mudhar’s insight and global understanding in the realm of business, brand development, market growth and entry strategies has assisted major players in aligning their vision with their business strategies.
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S U S TA I N A B I L I T Y
“ Weak outreach efforts to the community should no longer be acceptable” — Natasha Mudhar, CEO, Stirling Group and The World We Want
68
by pulling resources from various players to ensure the improvement of effectiveness and efficiency of the services companies can offer to the public through joint efforts. Too often public, private and social sectors are segregated and siloed, with their resources fragmented, they need to work together towards common goals and enable mutually desired social outcomes. Who does the responsibility lie with? It is up to the company’s leadership to ensure that social impact is at the top J U LY 2 0 1 9
of the business agenda. They must ensure that an effective strategy is embedded into the company’s day-today workings, prioritising long-term value in a way that mutually benefits both employees and society at large. CEOs must outline clear objectives and purpose of the company beyond financial touchpoints, defining their values. It is important that these guiding values permeate every decision-making process, from environmental footprint to social impact to investment decisions. Businesses must consider social impact as a company wide initiative and not just a tick in the box. Otherwise, they risk losing the trust of the public which can be extremely damaging in the long term. In this age of heightened transparency and increased accountability, companies cannot afford to leave this issue unaddressed. The consequences in doing so can be profound.
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UNDER THE PATRONAGE OF H.H. SHEIKH KHALIFA BIN ZAYED AL NAHYAN PRESIDENT OF THE UNITED ARAB EMIRATES
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Ministers
THE GLOBAL LEADERSHIP FORUM THAT DEFINES THE STRATEGY FOR A COLLABORATIVE, SUSTAINABLE AND INNOVATIVE ENERGY FUTURE, THAT ENABLES SOCIETAL, COMMERCIAL AND COMMUNITY PROSPERITY.
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T
he Congress programme has been developed to provide an environment to provoke the world’s energy leadership to re-evaluate their strategic planning. Although we expect to welcome 4,000 delegates, the programme is designed with an audience in mind that consists of just four people – an energy minister, a producer CEO, a user CEO and a bellwether financier. The programme only consists of content that motivates and deserves the interest of these representatives of the industry’s top leadership. If you are a leader in the energy market, or want to share the information that influences these leaders’ decision making, you will attend the Congress programme. Under the theme of “Energy for Prosperity”, the main four-day Congress programme has over 70 sessions that address the critical issues across all sectors and regions in the energy market. It focuses on prosperity for nations, for corporations, for societies, the environment and individuals.
Content is driven by cold facts and case studies, and coloured by provocative opinion from experts from every side of the debate to ensure an inspiring, informative and
unique content experience. With no agenda, political or preconceptions, the programme will deliver the information and interpretation that allows better decisions to be made. The programme looks at the energy market in the realistic context of economic uncertainty, political instability, material possibility and opportunity. The reality is that tomorrow’s energy goals cannot be realized with the tools, technologies and trading environment that is in place today. These goals will require radical thinking that provides a secure, environmentally-sympathetic and prosperous transition. The programme focuses on how the entire global energy ecosystem may work together to ensure a regulatory, investment, technological and skills environment that delivers real change. Running under the aegis of the main Congress programme are a series of side events, co-produced with hand-picked partners from thought, investment, innovation and business leadership. These side events allow delegates to dive deeper into topics of interest, and enter into detailed debate with top experts, market influencers and visionaries.
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CITY FOCUS
City Focus
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EDITED BY
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OLIVIA MINNOCK
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CITY FOCUS | JEDDAH
A diverse economic hub for Saudi Arabia, Jeddah is the perfect location to do business in the Middle East
S
ituated on the coast of the Red Sea, Jeddah is known as Saudi Arabia’s most open city and gateway to the
holy sites of Mecca and Medina. Subse-
quently, Jeddah is Saudi Arabia’s commercial capital and a popular business destination for local established firms as well as foreign entrepreneurs. Most prominent businesses 74
headquartered in Jeddah tend to be private entities or conglomerates, many of them split-offs from or founded by descendants of the founders of some of the oldest merchant services in the Middle East.
A DIVERSE ECONOMY As one of the primary resort cities in the Middle East due to its proximity to the Red Sea, fishery and tourism represent significant segments of Jeddah’s economy. It has the fourth-largest industrial district in Saudi Arabia and has been a major trading hub for centuries. Today, Jeddah is positioning itself as a scientific and engineering bastion of the Middle East.
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CLICK TO WATCH : ‘FROM THE EYES OF THE SKY BY AHMED ALSUFYANI’
Tourism remains a significant seg-
home to corporate headquarters and is
ment of Jeddah’s economy as the city
designed to attract foreign investments.
has been hosting millions of Muslim pilgrims on their way to Mecca since the
DOING BUSINESS IN JEDDAH
seventh century. The King Abdullah
It is prudent to learn a few Arabic
Economic City development in Jeddah
words before conducting business in
was formed with the goal of moving the
Saudi Arabia, although English is the
Kingdom’s economy away from oil,
second most commonly used lan-
toward a service economy with empha-
guage in business. Trust and familiarity
sis on manufacturing and utilising the
are the key aspects to successfully
seaport. In transitioning Jeddah to
doing business, so there is no distinc-
become a ‘mega city’ of the future, the
tion between business and personal
new mixed-use development will be
communication (as opposed to how
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‘ Jeddah is an attractive destination for foreign investors due to its location and cultural diversity’ an American would conduct themselves differently on a job interview than meeting a friend for coffee). Since Saudi Arabia is an Islamic country where cultural and religious practices are not decoupled from public life the way that they would be in most western countries, conserva-
NOTABLE COMPANIES HEADQUARTERED IN JEDDAH
DALLAH AL-BARAKA The 50-year-old private multinational company has holdings in real estate, banking and finance, healthcare, manufacturing and other sectors. Initially formed in 1969 as a courier service by noted Saudi businessman Saleh Abullah Kamal in Riyadh, the company became the Saudi government’s largest contractor by 1979 then a conglomerate with multiple holdings by 1984. Dallah Al-Baraka relocated to Jeddah in 2012 upon forming an agreement with the Qatari government and Islamic Development Bank to establish an Islamic Bank with $1bn in capital.
tive dress is a must and women must have their heads and shoulders covered. While Jeddah is considered more socially liberal than Riyadh and other major cities in the Kingdom, 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 | JEDDAH
‘ The city has been hosting millions of Muslim pilgrims on their way to Mecca since the seventh century’
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SAVOLA GROUP Dubbed the ‘Nestlé of the Middle East’, Savola Group owns the Middle Eastern supermarket chain Panda Retail and supplies oils, sugar, dairy products and fast food products to countries in the MENA region.
‘ Today, Jeddah is positioning itself as a scientific and engineering bastion of the Middle East’
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HAJI HUSEIN ALIREZA & CO. LTD. (HHA) With over 5,000 employees and 100 years of history, HHA was the first company in the Arabian Peninsula to import cars. While the company has diversified into other fields like jewellery, food, and building materials, HHA has had a steady presence in automobile trading and remain one of the area’s largest car distributors.
women are still likely to face complications with business and work visas. Foreign entrepreneurs are able to own 100% of their companies in the Kingdom, even though it is notoriously difficult for expats to get through without a work visa, so long as you complete all of the required formalities to register a business there. Singleowner companies do not have minimum capital requirements, but general and
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EA JUFFALI AND BROTHERS EA Juffali and Brothers is the largest enterprise in Saudi Arabia with over 70 years of history that parallels the surge of economic growth the country experienced by the 1970s. The company peaked at over 49,000 employees by the late 1970s, and brought telecom, TV and electricity generation to Saudi Arabia. The Juffali conglomerate formed a joint venture with IBM, Siemens, DuPont and numerous other large firms to enter the fields of construction, insurance, utilities and vehicle manufacturing and distribution. limited-shares partnerships require around 500,000-1,000,000 riyals (roughly $100,000-200,000). Jeddah is attractive destination for foreign investors due to its location and cultural diversity, and for American entrepreneurs in particular – the US embassy is also located in the city.
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T O P 10
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TOP 10
biggest companies in the Middle East & Africa Business Chief looks at the top 10 biggest companies in the Middle East & Africa, according to their revenue and reputation as an employer
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T O P 10
10
National Commercial Bank $6bn
The National Commercial Bank (NCB), also known as AlAhli Bank, specialises in retail and corporate banking, treasuries, and capital markets. Led by CEO Saeed Mohammed, NCB employs more than 13,000 people and is ranked as one of the world’s best employers by Forbes. The National Commercial Bank recently posted revenue in excess of $6bn, placing it amongst the top five largest banks in the Middle East.
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09
Qatar National Bank $6.4bn
Qatar National Bank is one of the world’s largest public companies, achieving the 237th spot in Forbes’ Global 2000 ranking in 2018. Its portfolio includes products such as credit cards, home mortgages, securities, and asset management among others. QNB generated revenue of $6.4bn in 2018, with profits exceeding $3.8bn. QNB was founded in 1964, and is led by chairman Ali Sharif Al Emadi and CEO Abdulla Mubarak Al-Khalifa. QNB is recognised in the Forbes’ Top 500 Employers list 2018. Today, it has 28,000 members of staff across 4,300 branches worldwide.
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08
First Abu Dhabi Bank $7.2bn
Headquartered in Abu Dhabi, United Arab Emirates, this upstart banking organisation was founded in 2017 and has already posted revenue of $7.2bn. The company grew to prominence as a merger between long-standing financial institutions First Gulf Bank and the National Bank of Dubai. Operating in 19 countries, the firm is led by CEO Abdulhamid Saeed. In recent years, management has emphasised the importance of technology and world-class customer service to make inroads in global customer markets. First Abu Dhabi Bank climbed into Forbes’ Best Employers list in 2018.
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07
FirstRand Ltd $6.7bn
This Johannesburg-based banking company posted revenue exceeding $6.7bn and profits of approximately $2bn in 2018 Led by CEO Johannes Burger, the organisation specialises in mortgage lending, credit cards, investment, insurance, wealth management, and personal loan products. It has a portfolio that operates both in the retail and commercial financial markets. The company has won awards such as the Best Bank Performer, employs more than 44,000 people and has shown substantial growth in recent years.
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06
Shoprite Holdings $10.9bn
Headquartered in Cape Town, South Africa, Shoprite continues to rank among the global retail giants and posted revenue in excess of $10.9bn and profits of approximately $5bn in 2018. Founded in 1979 and led by CEO Pieter Engelbrecht, the corporation has subsidiaries such as Checkers with more than 200 stores in Botswana, Namibia, and South Africa. Its flagship Shoprite brand has more than 600 stores across over a dozen countries, and employs more than 143,000 people.
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05
Saudi Telecom $13.6bn
Based in Riyadh, Saudi Arabia, Saudi Telecom was founded in 1998 and today has a revenue of $13.6bn. Led by CEO Nasser S. Al Nasser, Saudi Telecom’s profits have routinely exceeded $2.25bn while employing approximately 23,000 people. The organization has a strong focus on fixed-line, mobile and internet services. Although it held a virtual monopoly in its home country until 2007, it continues to lead the market despite incursions into its total annual sales.
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04
Etisalat $14.2bn
Emirates Telecommunication Group Company PJSC (branded trade name Etisalat) was founded in 1976, and the telecommunications company has an international presence in the Middle East and Africa. Its reported revenue of $14.2bn ranks it as a regional leader in internet hubs and wireless communications. Based in Abu Dhabi, the organisation is led by CEO Saleh Al Abdooli and has generated profits exceeding $8.3bn. Its diverse telecom-based services also include media-related equipment, contracting and consulting.
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03
MTN Group $16bn
Headquartered in Johannesburg, South Africa, this telecommunications company posted revenue of more than $16bn with profitability exceeding $3.3bn in 2018. MTN has operations in Africa, Asia, and Europe and had 232.6mn subscribers in 2016. Although it has a presence in upwards of 20 nations, approximately 30% of its revenue comes from Nigeria. Led by CEO Rob Shuter, the company has moved forward with its 5G network, outpacing all African competitors while employing more than 17,000 people.
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02
Sasol
$21.7bn
Founded in 1950 and headquartered in Johannesburg, South Africa, this oil and gas company posted revenue exceeding $21.7bn and profits over $3.1bn in 2018.
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It ranks in the Top 100 most regarded companies, according to Forbes. Led by joint CEOs Stephen Cornell and Bongani Nqwababa, Sasol employs more than 30,00 people and operates in the U.S, Qatar, Uzbekistan, and Mozambique among others. Its low-carbon electricity initiatives have raised the company’s value to 10-year highs. Sasol operatives through subsidiaries such as South African Energy Cluster, International Energy Cluster and Chemical Cluster among others.
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01
Saudi Basic Industries Corp $41bn
Founded in 1976, Saudi Basic Industries Corp has 30% public ownership whilst the remaining 70% is owned by 94
the Saudi Arabian government. Headquartered in Riyadh, Saudi Arabia, it produces a diverse cross-section of chemicals, metals, plastics, film, and nutrients among many other products. Consistently one of the world’s leading petrochemical manufacturers, it reported over $41bn in revenue and profits above $6.7bn in 2018. Led by chairman Abdulaziz Saleh Aljarbou, and CEO Yousef Abdullah Al-Benyan, SABIC employs upwards of 40,000 people in approximately 50 countries.
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Digital transformation in Saudi Arabia’s insurance industry WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
K ANE WELLER
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Waheed Y. Khayyat, CIO of United Cooperative Assurance, discusses how his firm is utilising technology amidst transformation in the Kingdom of Saudi Arabia
W
ith the role of a Chief Information Officer (CIO) transforming on a daily basis due to the speed at which technology is evolving,
it has become, now more than ever, increasingly vital to embrace and leverage the latest trends 98
in order to achieve an edge over the competition. For Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA), the importance of adopting and utilising new technologies such as Artificial Intelligence (AI), Data Analytics (including predictive analytics) and Blockchain ahead of rivals cannot be underestimated. “For these technologies to succeed in its implementation, and to realize their benefits and ROI for an organization, there is a great importance for talent and knowledge management. I believe those two key areas are necessary for any organisation in order to remain competitive,” he says. “The change in technology over the past few years is huge. Everyone’s talking about AI, IoT, data and data science all of a sudden. However, just a few years ago, these weren’t big topics and IT departments inside organisations J U LY 2 0 1 9
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“Digital transformation is everywhere and the question we have to ask ourselves is: are we doing it right?”
were still working in their traditional ways with legacy job roles. However, if businesses did nothing to keep up with these trends worldwide, and in the areas of talent management as well as the continuous education and development of their staff; they will lose their competitive advantage.” Although it is a challenging and competitive market to operate in, Saudi Arabia is largely considered an exciting region in which to conduct business.
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— Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA)
With the Kingdom in the midst of the Saudi Vision 2030 initiative, Saudi Arabia is experiencing change unlike ever before as the country seeks to diversify economy away from solely oil. “In general, Saudi Arabia and GCC companies have a magnificent opportunity and it’s really tempting for all companies to operate there,” affirms Khayyat. “There’s a big demand because people have become more digitally aware and eager to introduce technology to see more efficient services.” However, Khayyat believes there are clear challenges and restraints to operating in the Saudi market. “One of the main challenges to overcome in this region is that the regulations are a bit tougher here.
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101 This is in part down to the macroeco-
is lagging behind in terms of digital
nomic and macro-political complica-
transformation,” notes Khayyat. “When
tions in this region specifically.”
you compare it to other sectors,
Due to the emergence of digital
it’s clear that insurance still has some
transformation, the leveraging of new
digitalisation work to do ahead.
technology has influenced the
However, I expect to see the insurance
decision-making process of companies
space drive forward in terms of digital
in a variety of different industries. With
transformation over the next few years.”
the insurance space often considered
“Digital transformation is everywhere
slower to adopt new technology to
and the question we have to ask
advance its processes’ efficiencies,
ourselves is: are we doing it right?
Khayyat expects the insurance sector
It isn’t just about digitising some manual
to take great strides to catch up over
activities into digital forms using
the upcoming years. “Insurance is
the same processes.” he explains.
definitely one of the industries that
“We should consider that it’s about
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“We completely believe in the power of innovation” — Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA) 102 re-engineering the whole processes and building them up freely by leveraging recent, and matured digital technologies. We have to utilise new opportunities that they have made available, in addition to removing any waste and unnecessary complexities out of the processes.” Due to the competitive nature of the industry, UCA prioritises innovation as it aims to take the ascendancy in the insurance space. “Innovation is a capability inside organisations that triggers change; it should be blended in the DNA and inside the lifeblood of the company,” affirms Khayyat. J U LY 2 0 1 9
“In UCA, we believe that everyone is
together in focus groups to brainstorm
eager to change, but you can’t
ideas and drive success of change
implement change if you just keep
(using ADKAR Change Management
following the same old and traditional
Framework). With innovation acting as
ways. You have to be prepared to be
the catalyst, Khayyat believes the key
different – it’s vital. This means we
has been encouraging teamwork to
mustn’t forget to introduce new ideas
introduce the correct changes. “We
— that’s what will make us stand out.”
like to think outside the box. We sit in
In tandem with the development of
focus groups and hold brainstorming
a pro-change culture, UCA works
sessions with not just people from
E XE CU T I VE PRO FI LE
Waheed Y. Khayyat, CIO A professional and a leader in the field of digital and information technologies, with 20 years of comprehensive & consistent IT experience at a technology-driven enterprises in healthcare & insurance industries. As a ‘Chief Information Officer (CIO)’ giving a holistic insight and involvement at the ‘strategic’ level for planning and supporting the business strategy, and the business model of the organization. However, ‘operational efficiency’ is a another field of expertise, with long years of operational duties gave the dexterity of working at both sides ‘Strategy’ and ‘Operations’. This leadership capacity is a key success factor for organizations and a ‘must-to-have’ capability for their senior management level in order to gain sustainable competitive advantage that is required to achieve their mission, and objectives efficiently, and to overcome the market competitors.
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“In UCA, we believe that everyone is eager to change, but you can’t implement change if you just keep following the same old and traditional ways.You have to be prepared to be different – it’s vital” — Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA)
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U N I T E D C O O P E R AT I V E A S S U R A N C E
IT but also from different business disciplines to work together and bring new ideas to the table and develop them,” says Khayyat. “I believe it’s part of the excitement of working at UCA and is a great recipe for success. We have a real desire to innovate and bring change – we completely believe in the power of innovation.” With the importance of forming good partnerships critical to the success of all companies, UCA has established a strategic business relationship with Hilal Computers. “Hilal is a really
A Leading Turnkey Systems Integrator for the Region Hilal Computer (HILALCTTC) part of Al Hilal Group is a leading regional information technology, consulting and business process services company. We harness the power of computing, automation, cloud, analytics and emerging technologies to help our clients adapt to the digital world and make them successful. A company recognized regionally for its comprehensive portfolio of services, strong commitment to sustainability and good customer relationship, with wide presence in the region (KSA, BAHRAIN, UAE). Together, we would discover ideas and connect each other to build a better future.
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Bahrain
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KSA
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UAE
107 supportive partner in terms of bringing
2009
Year founded
300
Approximate number of employees
in expertise and great technologies through its collaboration with the inventors and manufacturers on the infrastructure side,” he says. “When I started at UCA, I worked on the analysis and assessment of the counter space and found that the current infrastructure we had in place was outdated. Having developed a new infrastructure, Hilal helped us generate real value from
HQ
Jeddah, Saudi Arabia
the new software we installed.” With the journey still ongoing, Khayyat hasn’t overlooked UCA’s task of laying the groundwork before introducing new processes to enable success.
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“We must keep aligning as we go – it’s the only way to maintain the sustainability of our transformation” — Waheed Y. Khayyat, CIO of United Cooperative Assurance (UCA)
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“I believe Abraham Lincoln put it the best way when he said ‘give me six hours to chop down a tree and I will spend the first four sharpening the axe’ – and that is exactly what is happening at UCA,” explains Khayyat. “We spent a lot of time doing the planning, understanding and outlining the account processes as well as trying to design the new processes. We’re halfway through – our key goal is to be dynamic and ensure we’re a moving target. It’s difficult to guarantee that what you have planned is going to be used two or three years from now because of how quickly the world changes. This means, now more than ever, it’s important that we continue to monitor the real-time changes in terms of technology, both economic and industrial changes and make sure we continue adjusting and aligning our direction accordingly. We must keep aligning as we go – it’s the only way to maintain the sustainability of our transformation.”
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TECHNOLOGY TRANSFORMATION TO IMPROVE THE CUSTOMER EXPERIENCE WRITTEN BY
SOPHIE CHAPMAN PRODUCED BY
KRISTOFER PALMER
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PIZZA HUT
PIZZA HUT IS UNDERGOING A DIGITAL TRANSFORMATION JOURNEY TO BETTER UNDERSTAND CUSTOMER RETENTION AND ENGAGEMENT. CHIEF CUSTOMER OFFICER FOR APAC, TROY BARNES, TELLS US MORE
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izza Hut wants to create a world with more ‘yum’. As part of the Yum! Brands corporation, a Fortune 500 company based in
Kentucky, the company prioritises its customers’ experience. Troy Barnes, Chief Customer Officer for the Asia Pacific (APAC) region at Pizza Hut, believes that with a focus on the consumer journey, the business will see positive results. Barnes’ role is made up of three key pillars: restaurant excellence, digital experience and restaurant technology. “Restaurant excellence focuses on what happens in store – products, delivering pizzas and food safety standards and service culture. Digital experience is about understanding how customers want to interact with the brand and delivering on that, largely through online purchasing, whether that be the website, app, social media or messaging” he explains. “Restaurant technology looks at the underlying technologies that support the employees J U LY 2 0 1 9
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“ Collectively, we have brought that customer mindset to the core of our strategy” — Troy Barnes, Chief Customer Officer for APAC, Pizza Hut
of our franchises. Things like point-ofsale platforms, inventory supply chain, labour management, and supply and demand modelling.” Underlining all three pillars is customer engagement, in which Pizza Hut looks to understand and assess how each aspect works collectively under the customer experience umbrella with the strategic focus of having more customers more often to Pizza Hut. Since his position was established as the first customer role in the APAC region last year, Barnes and his team
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CLICK TO WATCH : ‘OUR PIZZA HUT STORY’
have worked to bring the consumer to
is about an end-to-end experience that
the forefront of the business. “Collec-
will offer an overall, seamless benefit
tively, we have brought that customer
to the customers – the company is
mindset to the core of our strategy
building the know to better understand
– including our engagements, part-
and create more value to the consum-
nerships, workshops and franchise
ers’ journey. “Leveraging digital is really
growth. We have reworked the busi-
about what journey a customer is cur-
ness with a more focused lens around
rently going through, what journey you
the customer itself, well supported by
want to create, and more importantly,
our other regional and global counter-
what journey a customer is looking for,”
parts. Our job is really then to augment
he says. When evaluating the entire
that focus with building capabilities,”
process, the firm will then divide it into
comments Barnes.
key priorities, such as the fast-casual
For Pizza Hut, digital transformation mid dl e e a s t . b u s in e s s c hie f. c o m
digital store. “It’s really a concept that a f r ic a . b u s in e s s c hie f. c o m
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creates a common experience on the back end of understood and defined journeys. It enables our customers to order pizza for themselves and their families in a very frictionless, seamless and easy way,� Barnes explains. On a strategic level, Pizza Hut is aiming to establish a consistent perception of its franchises across all markets, with finetuning to specific local needs, usually within the menu. The company is focused on making the brand relevant to all customer segments locally – ensuring ease, quality and excitement no matter the location.
E XE CU T I VE PRO FI LE
Troy Barnes Troy is a transformational leader driving entrepreneurial and cultural change with a focus on delivering value for customers. Extensive experience in process improvement, operations, IT, program and project management, training, coaching, mentoring and consulting leaders in a diverse cultural environment. Particularly interested in challenging situations needing transformation with a focus on customer experience and business growth. Specialties: Transformation, Customer Experience, Innovation, Process, Change Management, Lean Six Sigma, Portfolio, Program and Project Management, Coaching, Mentoring and Training.
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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.
“ Leveraging digital is really about what journey a customer is currently going through, what journey you want to create, and more importantly, what journey a customer is looking for” — Troy Barnes, Chief Customer Officer for APAC, Pizza Hut 119 Pizza Hut has always prioritised
digital stores have definitely provided
listening to its customer feedback and
a lot of uplifting customer feedback
ensuring that any changes it makes to
which we track globally on an order-
its operations will be beneficial for the
by-order basis. The response of overall
consumer. “Technology is really break-
satisfaction and ease with which our
ing new ground by making life easier
consumers can order pizza through
– with apps or websites, social media
this new platform has increased dra-
and messaging platforms, a lot of
matically. This positive feedback has
brands and organisations are trying to
translated into sales and revenue at the
compete in the space of making it easy
end of the day.”
for customers to engage with them, al-
Barnes highlights the importance of
lowing the business to satisfy the con-
customer retention within the compa-
sumers’ needs,” Barnes notes. “The ex-
ny’s operations: “We want to under-
periences and journeys that have been
stand the behaviour of the consumer in
created as part of these fast-casual
regards to preference when ordering
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“ I think the exciting part is that I don’t have the answer to what that will actually look like, and that’s the thrilling part of a five-year plan” — Troy Barnes, Chief Customer Officer for APAC, Pizza Hut
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a pizza, regardless of the brand. An understanding of that behaviour would give us insight into a mindset.” The company has been working on a datadriven project that revolves around the behaviour of customers. Once the data was collected, the company then established a “very purposeful and personalised” capability. “We’re moving away from segmentation and broad-based or broadcast marketing that leans towards certain offers and discounts. Instead we’re opting towards engaging with consumers on more of an emotional and personal level to create a more meaningful relationship,” Barnes adds. J U LY 2 0 1 9
As the company continues on its digital transformation journey, Barnes see Pizza Hut’s growth through two key aspects: “I think Pizza Hut will continue to evolve its presence in how it delivers an experience for consumers that becomes world class. I also think the firm will continue to leverage the core of its business, and the brand that underpins that, augmented by its internal culture to really drive a new way of creating those experiences.” Despite the clear goals set by the company, its digital transformation journey is not set in stone. “I think the exciting part is that I don’t have the answer to what that will actually look like, and that’s the thrilling part of a five-year plan.”
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LAU: transformation in the education sector WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
ALEX BARRON
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Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement at LAU, discusses the supply chain strategies his organisation is implementing in order to achieve and sustain its success in Lebanon’s education sector
A
s a leading private higher education institution in Lebanon, Lebanese American University (LAU) is an organisation with
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between its campuses in Beirut and Byblos, LAU welcomes more than 8,500 students from 78 different nationalities through its doors. Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement at LAU, believes his organisation has evolved significantly through the launch of its new buildings since he joined the Beirut campus in 2009. “The university has grown considerably since I first came on board; we’ve had four major capstone projects built, and our office has purchased all the furniture, furnishings and equipment for each of these buildings,” says Feghali. “In 2010, we introduced Frem Civic Centre in Byblos; 2013 saw the Gilbert and Rose-Marie Chagoury Health Sciences Centre open, in 2017, we unveiled the Engineering Laboratories and Research Centre and last year, the new Library J U LY 2 0 1 9
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“ We have to stay at the top of our game and try to make the best use of the existing technology” — Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement of LAU
building, which is really a landmark building in terms of architecture and the environment, opened its doors for the first time too. The latest addition to Byblos campus is the new Central Administration building which is in its final stages towards completion.” The university partnered with 39 pharmacies and 24 hospitals in Lebanon, including the Houston Methodist Hospital and four Walgreens sites in the US, in a bid to provide learning and experimental education opportunities to pharmacy students. As such, the university maintains
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CLICK TO WATCH : ‘WHY CHOOSE LAU’ 129 partnerships with industry leaders and
he explains. “Now, having undergone
other sponsors as well as increasing
a rigorous procurement policy and
students’ educational and training
well-designed procurement procedures,
opportunities while opening up research
as well as the integrity and the exemplary
collaboration options for faculty
work ethic of its procurement staff, have
members. LAU operates with an
all enabled a significant contribution.
ambitious roadmap, aiming to position
Our reputation has accelerated as an
itself as the leading regional institution of
equal opportunity buyer that treats all
higher learning across the Middle East
bidders for supply contracts fairly and
and North Africa region. Feghali points
equally throughout the years.”
to the impact his organisation has had
With procurement vital to the growth of
on Lebanon’s education sector overall.
companies worldwide, Feghali observes
“A 2017 study showed that LAU
how procurement has become an
contributed $897mn into the country’s
important strategic function that
economy for the fiscal year 2015-2016,”
stands at the forefront of operations.
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130 “Our goals have been to contribute to
“Supply chain transformation
the achievement of the university’s
impacts all aspects of our procurement
objectives through three things,”
operations such as the degree of
affirms Feghali. “Firstly, we must get
cooperation and coordination with
the most in terms of value from the
internal customers, the quality of our
acquisition of goods and services.
relationships with suppliers, and the
Next, we must streamline the acquisi-
aligning of the employees behind the
tion process itself, which will enable
vision and ensuring they work collabo-
the reduction of costs and the opportu-
ratively to develop the critical role
nities for errors in it. Finally, we must
of partner with internal customers,”
control the expenditure of funds
he says. “The organisation has to
through ensuring compliance with the
continue evolving in order to improve
university’s procurement policy and
efficiency, achieve standardisation, and
procedures, with the budget and
for succession planning. Finally, process
with record keeping requirements.”
improvements will have to be imple-
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mented to enforce standardisation,
“Since we began using the system
achieve data integrity, facilitate perfor-
three years ago, lots of lessons have
mance measurement and communicate
been learned and we’ve consistently
the results, thereby enabling us to get
reviewed how we can make our
the most from the technology in place.”
services better,” says Feghali. “We could
Due to the way digital transforma-
improve the collection of data for the
tion is defining how all organisations
purpose of automating commodity
the world over conduct operations,
segmentation and portfolio analysis for
there has been a competitive drive
the goods and services we purchase.”
from a range of companies globally
Although leveraging new technol-
to introduce new technology quicker
ogy is largely considered a positive
than the competition. In the case of
change by businesses, the impor-
LAU, the university has implemented
tance of introducing software and
systems such as the Oracle iProcure-
processes that enhance its current
ment modules over the past few years.
offering can’t be overlooked.
E XE CU T I VE PRO FI LE
Khalil Feghali, Senior Procurement Associate / Assistant Director of Procurement Holder of an engineering degree, a MBA and ISM’s C.P.M.® (Certified Purchasing Manager) and CPSM® (Certified Professional in Supply Management) designations, Khalil Feghali has over 20 years of professional experience in procurement management in several industrial sectors including manufacturing, construction, oil & gas and higher education, both in Lebanon and abroad.
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LEBANESE AMERICAN UNIVERSITY
“ The recruitment of a director of procurement for both campuses is expected to give us a boost” 132
— Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement of LAU
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“ Supply chain transformation impacts all aspects of our procurement operations” — Khalil Feghali, Senior Procurement Associate/Assistant Director of Procurement of LAU
“We’re delaying any introduction of new technology, in terms of spend analysis tools or contract management systems, because there’s a lot more we can do with the existing system,” explains Feghali. “Until we feel comfortable that we’ve achieved as much as we can with our current model, we can hold off on alternative options until later on. It’s important to work with internal customers to help change their perception of the procurement function here at LAU and convince them of the new value proposition that the procurement office can deliver.” With innovation considered an important priority at LAU, the university launched the LAU Fouad Makhzoumi Innovation Centre, inaugurated in April 2019, with two pillars – entrepreneurship and academia – to be the hub for entrepreneurial innovation. The Centre will serve as an accelerator, and to enhance educational and training activities through regular international conferences, lecture series, scholarly workshops and international research to foster creativity and innovation. “The university places huge importance on the training of its employees and values their continuous development
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LEBANESE AMERICAN UNIVERSITY
and the upgrading of their skills,” says Feghali. “In 2017, a study indicated that, from 2011 to 2015, the amount spent on learning or training for employees was in the $30 millions figure. It’s vital to us.” Looking to the future, Feghali has clear ideas of how procurement at LAU can continue to be successful in the future. “We have to stay at the top of our game and try to make the best use of the existing technology,” he says. “The recruitment of a director of procurement for both campuses is expected to give us a boost in terms 136
of implementing the direction that we want to go in and which consists of laying the groundwork for the future transformation of the procurement function into a more strategic supply management operation. This starts with the implementation of processes for measuring and quantifying the existing situation so as to enable the devising of a departmental strategic plan for the subsequent period.”
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1924
Year founded
637
Full-time staff members
318
Full-time faculty
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Barclays Bank Mauritius: a digital transformation across the African financial sector WRITTEN BY
CATHERINE STURMAN PRODUCED BY
STUART IRVING
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Barclays Bank Mauritius is undergoing a significant supply chain transformation.Vinay Bachoonum, Head of Strategic Sourcing at Barclays Bank Mauritius, tells us how…
T
here is a significant need to rethink the way in which procurement engages with the supply chain, particularly in the
African banking sector. As financial organisations take a greater look at the products they procure, 140
their source of origin and the difference they can provide to customers, technology is also playing a leading role in enabling the procurement and supply chain to become better aligned and support businesses more effectively. “Procurement should not be looked at in isolation, especially with technology taking the lead. This way of thinking in procurement has helped me to really make a difference instead of being in the back seat,” states Vinay Bachoonum, Head of Strategic Sourcing at Barclays Bank Mauritius. “The right procurement specialists and expertise is increasingly vital. As a procurement specialist on the island I have been active in making sure that we really make a difference. In this challenging environment we have technologies taking over exponentially.” Noting that procurement has previously gained J U LY 2 0 1 9
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“ Procurement should not be looked at in isolation, especially with technology taking the lead” 142
— Vinay Bachoonum, Head of Strategic Sourcing Barclays Bank Mauritius
a negative perception, recent improvements in legislation surrounding anti-bribery and corruption laws across Africa have fully transformed the banking landscape in relation to public procurement. Undertaking independent review panels, where procurement decisions can be challenged, as well as bid openings in public sector procurement, as well as the online submission of bids has reignited conversations as to how procurement can better support the financial sector as it continues to be transformed through digitisation. “I think we should now be moving towards online actions and applying a consortium
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CLICK TO WATCH : ‘BARCLAYS COLOURS OF LIFE’ 143 approach to buying common goods for
unlike many other supply chain leaders,
the government, ensuring that we spend
his career has been one which has
more time on strategic procurement, for
been meticulously planned out,
example. When it comes to Barclays,
becoming a member of the Chartered
there has been significant improvement,�
Institute of Procurement and Supply
adds Bachoonum.
(CIPS) back in the early 2000s. With
Throughout his decade long tenure
the ambition to become a professional
at Barclays Bank Mauritius, Bachoonum
buyer and supply chain specialist, he
has witnessed the procurement industry
remarks that while many find this
shift from being reactive to an increasingly
position to be somewhat thorny, it is
proactive and agile division, ensuring
one which enables individuals to orbit
that businesses remain resilient amidst
within organisations and gain a greater
the ever-changing demands of its
understanding of the internal customer,
customers. However, against such
the external supply base and the
seachange, Bachoonum explains that
supplier community.
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“It’s ensuring a balance between what
It is exciting and formed part of my
organisations are looking for and how
thought process when I wanted to build
to get things executed from the supplier
a career in supply chain management.”
community. The supply chain comes with procure, supply management, cost
DATA GENERATION
reductions, due diligence and negotia-
Throughout its procurement opera-
tion. If you look at the bigger picture in
tions, Barclays Bank Mauritius has
logistics and supply chain, it is a huge
worked to implement robust govern-
pipeline of value adding services so
ance around its buying processes, and
that it becomes very exciting,” he says.
has enhanced its privacy tools and
“The role touches every part of the
embedded new policies and standards.
economy, from logistics, distribution
Establishing a new way of buying and
and production, to manufacturing and
enforcing clear segregation between
fast-moving consumer goods (FMCG).
buying and the supply management
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functions has also provided a number
of goods and services in the near
of advantages in building strong
future at Barclays Bank Mauritius,”
relationships between teams.
says Bachoonum. “This has been
Additionally, from a technology
a gradual move. Being an island,
standpoint, accessing advanced
the level of sophistication and the
data analytics has seen the business
readiness of the supplier community
gain essential insight into various
is important. We should be pushing
trends in the market, where sophisti-
things that are aligned to the readi-
cated processes and electronic
ness and the culture that lies within
request (ERFx) solutions are now
the supplier base, which mainly
used not only for bidding but also
constitutes small to medium-sized
as a bidding solution.
organisations. However, we also work
“The system will also be used to execute E-auctions for certain types
with large multinationals for specific hardware and supplies.” 145
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CUSTOMISED SOLUTIONS By improving its spend management and analysis through technology, Barclays Bank Mauritius has taken a greater look at its suppliers in order to source ways to unlock greater efficiencies. “We are investing heavily in the right tools, making sure that we can extract data from the systems both from spend analysis perspective, but also from supply management perspective,” adds Bachoonum. “Spend analysis is done on a monthly basis so that we can see whether we have any spend that is outside J U LY 2 0 1 9
the normal procure process. All data generated can be shared and we can show the factions where money is going. It’s important to have the relevant data to trigger the right decisions as to whether we outsource or bring solutions in-house.” Such technological focus has also extended towards the company’s investment in a system which has enabled the creation of a central data repository, enabling automated reporting of high-quality regulatory
“ Being an island, the level of sophistication and the readiness of the supplier community is important” — Vinay Bachoonum, Head of Strategic Sourcing Barclays Bank Mauritius
data which is sent to the Central Bank. 147
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With all information remaining increasingly time sensitive, the system has reduced ongoing risks of fines and incorrect submissions and poor-quality data being sent. “We had to invest in a solution, where we went through a selection process. Nelito Systems proposed a solution and has ensured that we are able to capture the right data, in the right format and in an automatic manner to the regulator,” says Bachoonum. “I’ve been heavily involved in the negotiation of the contract to ensure 148
the bank is protected in terms of key attributes and requirements. These solutions can then be used across the organisation. However, it is challenging in the sense that we are negotiating with a supplier that has credentials for delivering projects outside of the country, but not in the country,” he adds. “Due diligence was quite strong to ensure that they could build a customised solution, and we could also agree on expectations on both sides.”
SUPPLIER RELATIONS Procuring for a global bank with such a strong reputation as Barclays has no doubt led to increased pressures J U LY 2 0 1 9
across the procurement and supply chain. To counteract this, Bachoonum has sought to support its limited supply base across Mauritius and support them in remaining compliant within all regulations and standards. “With regards to data privacy, for example, we need to educate suppliers. I have been involved in influencing suppliers, looking at what this investment in processes would provide as a yield, which will enable them to deliver similar goods and services to other high level organisations. There is a need to implement a proper way of measuring performance, and if things go wrong how to easily recover,” explains Bachoonum. “Some suppliers felt it was over-engineering, but I presented it as an investment that would greatly improve the way they deliver.” The business is continuing to grow in leaps and bounds, yet the company has revealed that it is set to become part of one of Africa’s largest diversified financial services group in 2020. Decoupling from Barclays after a century will see the business become fully part of Absa Group, one of the largest financial institutions in South Africa, which will lead to further advantages for the business. mid dl e e a s t . b u s in e s s c hie f. c o m
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“ Nelito Systems proposed a solution and ensured that we are able to capture the right data, in the right format and in an automatic manner” — Vinay Bachoonum, Head of Strategic Sourcing Barclays Bank Mauritius
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“We’re very proud of the Barclays brand, and were aware that there would be a transition period,” notes Bachoonum. “It is a chance for us to become a regional bank instead of a global one. It’s a great opportunity for us to become a completely African driven bank. The business is very confident and is embracing the Absa brand. We need to create opportunities for our customers.” Set to become a completely different franchise, the organisation remains passionate in reinforcing its strong roots within Mauritius. Bachoonum is incredibly positive on what the future holds for the organisation, where it will remain active on the main continent, look at new customer-led innovations, such as the mobile wallet, and explore further territories as part of its five-year plan. “We want to really mark ourselves in the local market but also in the offshore market,” he concludes. “We have a plan, and we are moving steadily in the right direction to achieve our goals.”
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IMPROVING AGRICULTURAL VALUE-CHAINS IN AFRICA AND BEYOND WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
RICHARD DEANE
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ImpactAgri is on a mission to bring together major companies, investors and stakeholders to create economically viable, socially inclusive, environmentally sustainable agribusinesses across Africa
M
ining companies are some of the biggest landowners and economic contributors in Africa. As such, they have a unique opportu-
nity, and responsibility, to develop economic diversifi154
cation strategies based on the sustainable use of land and water resources. Agriculture should be a core component of this strategy, where the needs of mining and agriculture in rural areas overlap in many ways and at all stages in the life of a mine. ImpactAgri is working with the mining industry in Africa, and increasingly elsewhere, to help mining companies contribute to and benefit from the economic, social and environmental impacts of sustainable agriculture. ImpactAgri’s work plays a key role in the development of responsible mining strategies for many companies. ImpactAgri Founder & CEO, Jon White, had 20 years of experience working in agriculture when he recognised the need to find a new way to improve logistics, access-to-market and financing for emerging agribusinesses in Africa. He believes agriculture J U LY 2 0 1 9
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“ If you can create high-value agri-processing that’s inclusive and maintains employment levels then those jobs can last forever” — Jon White, Founder & CEO, ImpactAgri
can be the catalyst to deliver socioeconomic development while caring for nature. “The best way to create real jobs in Africa and reduce the impact on the environment is through well-designed farming systems done in a socially conscious way,” says White, who notes the challenge in breaking the cycle of ‘slash-and-burn’. “Much of the deforestation occurring is due to slash-and-burn, where soils become poor after a few years of use, so they move to the next hectare, burn it down, plant, stay there a year, then move to the next hectare…”
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157 Sustainable and economically viable
farming towards revenue-generating
approaches to farming can create long-
enterprises and greater employment.
term agri-employment and environmen-
Governments across Africa are
tal benefits, explains White. “A mine
increasingly wanting to issue licences
can be a great employer for 20 years or
to mining companies capable of
more but when it closes there’s nothing,”
supporting the population around the
he warns. “If you can create high-value
mine. “It’s OK replanting trees when
agri-processing that’s inclusive and
you leave a mine site, but what happens
maintains employment levels then those
to the many people employed there
jobs can last forever.” It’s the creation
when it closes?” questions White, who
of a genuine long-term footprint that
argues that new mines, often in enviro-
drives White and his team; the opportu-
nmentally sensitive areas, need attractive
nity to help mining companies co-cre-
alternative employment opportunities
ate sustainable self-standing agribusi-
to deal with the inevitable migration of
nesses, driving a shift from subsistence
workers. “You can actually create a hub
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of agriculture away from the mine to
community. He advises that address-
stop that drift, and people will go there
ing key questions can help companies
rather than to the mine gate,” he
benefit from the agriculture sector.
reasons. “In sensitive areas, like Guinea
“Can agriculture provide sustainable
and Cameroon, to have a strategy that
jobs alongside this industrial activity?
creates a hub away from the mine,
Can it contribute to the social license
but coherent with its situation and, to
to operate by building community
a degree, supported by the mine, is
relations? Can it provide solutions for
a positive thing to do for all concerned.”
post-mine planning that deliver more
ImpactAgri’s other Founder and
than trees and dry grassland with
Director, David Hampton, is keen to
poor biodiversity? How can agricul-
see agriculture projects working
tural technologies help rehabilitate
alongside mining and other industries,
land, stabilise tailing ponds and help
both taking advantage of and
remove heavy metals? All the way
spurring on the development of key
through the value chain, there is
infrastructure vital for the life of an
a crossover between agriculture and
industrial project and its local
the different stages mines and other
E XE CU T I VE PRO FI LE
David Hampton David Hampton is a highly experienced strategy consultant, company director and entrepreneur. He has over 30 years of international experience and expertise in strategy consulting primarily providing advice to major global corporations in the energy, mining and agri-business industries on the strategic impact of sustainability and clean technology developments on their business.
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“You can’t simply buy into a project in Africa sitting in an office – you have to go out there and make it happen” — David Hampton, Founder & Director, ImpactAgri
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S E I G O O L N H C TE
W E N WITH
AFTER
AFTER
AFTER
E BEFOR
E BEFOR
E BEFOR
“ We believe you can take your CSR budget, and make it into a cash generator. Not a cost.That’s the advantage of working with ImpactAgri” — Jon White, Founder & CEO, ImpactAgri
industrial businesses pass through when utilising the land. The opportunities are there.” In Guinea, ImpactAgri is working with Anglo African Minerals to support development of their corridor and bauxite mine. White hopes the proposal will limit migration and create thousands of agriculture jobs. Working with Vedanta in Zambia, ImpactAgri is developing a large-scale horticultural operation utilising the water that is already being 163
E XE CU T I VE PRO FI LE
Jon White Jon White is an experienced CEO managing companies and operations in Africa, Europe and the USA. For the last 15 years he has focused on agricultural and landscape solutions to increase yields, save labour, and reduce energy and water consumption whilst reducing runoff and pollution. White’s drive and initiative combined with his vast experience, network and energy in the field helps ensure ImpactAgri’s projects succeed. White’s corporate background includes senior management roles, in world class manufacturing operations at Pirelli in the production of Fibre Optic & Power Cables, and as VP EMEA of Netafim, the world’s leading precision irrigation company. He started his career in the mining industry with British Coal. White has an Honours Degree from the University of Leeds in Mechanical Engineering.
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extracted from the mine. The goal is for the agribusiness to employ more people than the mine itself within a few years and create a significant source of fruit and vegetables for the region. Longer term development will create high-value tree crops such as nuts and citrus for export. Elsewhere, ImpactAgri is working with other companies to identify the potential for agricultural solutions to remediate land and add value to legacy assets. White explains that sustainable 164
intensification on ex-mining sites can also be hugely positive: “In Zambia, ImpactAgri is working with local partners to plant specific tree types on used and spent copper tailings. It looks like the moon, but by replanting the right type of crops, you can create biofuels. In turn, those biofuels can be a shared crop for our food crops.” He stresses that it’s important to value the natural capital with efficient use of water, understand the value of soil health and manage the impact on natural ecosystems. Once these agribusinesses are given the opportunity to flourish, it’s vital to secure access-to-market by building the value chain, asserts White. J U LY 2 0 1 9
“Sadly, there are many examples in Africa – whether a cassava plant for flour or a tomato factory – where the whole value chain hasn’t been addressed. Whether it’s the upstream, where they are going to sell, or the logistics to move the products, an integrated and holistic view of the requirements at each stage of the value chain are essential.” New technologies and innovative approaches are key. White is excited about a couple of projects in development that will mix solar PV with agribusiness. “Mines need power, lots of power… If you can install a 50 MW solar panel installation with hydroponics you can farm underneath the panels. It’s a useful approach when land is not suitable for traditional agriculture and we can actually take some of that energy and use it for processing crops like cocoa and vegetables; for washing them and for cooling. Having that energy source on site can be a wonderful thing.” Mining companies can spend millions of dollars on CSR schemes but too often it’s wasted stresses White. “Building hospitals and schools is a great thing to mid dl e e a s t . b u s in e s s c hie f. c o m
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C O M PA N Y I N F O
Making a difference with impactful partnerships “Our network enables us to bring in big players to make big things happen,” says ImpactAgri’s founder and CEO Jon White. “For example, AFGRI in South Africa is one of our key partners providing agriculture services across the region: grain management and storage; equipment and financial services to support full-scale commercial farming. You need alliances
J U LY 2 0 1 9
with organisations capable of operational excellence in each country who understand its complexities to be able to deliver results.” ImpactAgri is also working with companies like Rubicon Integrated Services, who offer their expertise in community infrastructure improvement, water technologies, disease vector eradication and road building.
do… But if there isn’t a network in the community and a tax system to pay for teachers and doctors, every year they have to keep financing the project. This ends up being a cash drain while they’re being vilified for not creating other jobs.” He argues that projects need to offer real jobs that generate tax to be self-sustaining. “We believe you can take your CSR budget, and make it into a cash generator. Not a cost,” he pledges. “That’s the advantage of working with ImpactAgri.” Within each country it operates, ImpactAgri identifies strong off-take partners for specific crops… For example, in Uganda, the company is allied with one of the biggest traders of macadamia nuts. “The ideal model is to start with a farm as a commercial entity that supports the business in terms of paying for equipment, off-take and processing,” says White. “But as we expand, we’d rather work with the farmers on their own land, under contract to actually deliver services to them such as irrigation systems, equipment and help with off-take. It’s very inclusive.” Hampton highlights the constant challenge to secure financing. “On mid dl e e a s t . b u s in e s s c hie f. c o m
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a US$40m project, the hardest funds
hard to find investors for individual
to raise are the first $1-2mn for the
greenfield sites. To secure returns he
environmental assessment and
recommends a minimum 10-year cycle
feasibility studies. No one wants to
as these are long-term projects where
pay for that. It’s too small for most
you need to plan for a year when yields
investors, and the bigger investors
are less than ideal, while Hampton
want that to be done before they
warns against the perception that
consider getting involved…” ImpactAgri
brownfield sites can offer a quicker
has developed a portfolio that diversi-
turnaround: “In Africa, it’s often better
fies the risks but White concedes it’s
to build something from scratch than
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try to turn around someone else’s
financiers and lawyers on ‘Wall Street’
problem project.”
but we also have people capable of
ImpactAgri’s minimum goal is to
going out in the field to tackle unique
generate half a billion dollars of
agricultural challenges alongside the
investment in agricultural projects by
communities we engage with. Ultimate-
2025. The current pipeline is already
ly, you can’t simply buy into a project in
over $300mn with more funding
Africa sitting in an office, you have to go
imminent. “We’ve found a unique
out there and make it happen.”
proposition,” says Hampton. “We have people in our team happy talking to
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