Business Chief MEA – July 2019

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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

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

a fri c a .busi ne ssc hief. com

03


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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.”

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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

example, the number one payment provider in Egypt is SMS, necessitating a partnership with network providers. mid dl e e a s t . b u s in e s s c hie f. c o m

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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

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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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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

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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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“ 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

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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

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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

BE A PART OF THE MOST INFLUENTIAL ENERGY CONGRESS ABU DHABI, 9-12 SEPTEMBER 2019

15,000 Attendees

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2,500 Exhibitors

600 Media

500 CEOs

250

Speakers

70

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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The 24th World Energy Congress Programme

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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The programme has been curated to deliver an experience that requires the attendance of industry’s leadership. Do not expect to agree with everything you hear, but do expect to have to evaluate whether your existing values and beliefs are correct.

Side Events

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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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CITY FOCUS | JEDDAH

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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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CITY FOCUS | JEDDAH

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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T O P 10

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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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T O P 10

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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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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PIZZA HUT 110

TECHNOLOGY TRANSFORMATION TO IMPROVE THE CUSTOMER EXPERIENCE WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

KRISTOFER PALMER

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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

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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

122

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

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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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152

IMPROVING AGRICULTURAL VALUE-CHAINS IN AFRICA AND BEYOND WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RICHARD DEANE

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I M PA C TA G R I ( H O L D I N G S ) LT D

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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