MIDDLE EAST EDITION AUGUST 2018 middleeast.businesschief.com
TOSHIBA
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A world-class supply chain
Embracing on-demand insurance
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Picture-perfect procurement INSIGHTS FROM LORRAINE BLACK, MBC’S HEAD OF PROCUREMENT
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FOREWORD
elcome to the latest edition of Middle East’s Business Chief – our August issue! Opening up this month’s magazine is a special focus on Middle East Broadcasting Center (MBC Group), the region’s largest private media company. James Henderson caught up with Lorraine Black, its long-serving Head of Procurement, to discuss her department’s growing importance to MBC’s business model. “We’re working in a fast-paced and competitive creative industry,” says Black. “It means we have to be really dynamic, versatile and slick at what we do.” Deeper into this issue, we speak with Maki Yamashita, Senior VP for Toshiba Europe. After 18 years working for the Japanese tech giant, Yamashita is certainly well placed to offer expertise on the in-vogue topics of digital transformation and cybersecurity. We explore Beirut’s chief business industries in August’s City Focus while the countdown is on in our latest Top 10 as we rank the highest-profile CEOs across the Middle East. Finally, our exclusive digital reports boast interviews with, on top of MBC, Easa Saleh Al Gurg Group, Union Insurance, GroupM and The Roof Tile Group, Fletcher Building. We hope you enjoy this month’s magazine – if you have any feedback, you can find us across social media: @Business_Chief.
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m i d d l e e a s t . b u s i n e s s c h i e f. c o m
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CONTENTS
Middle East Broadcasting Group
10
Procurement excellence for the small screen
Mobile tech for the
UNDERBANKED
44
A NEW DAWN FOR
32
CYBERSECURITY IN THE MIDDLE EAST
Top 10
66
BEIRUT CEOs MiddleEast City Focus
54
in the
CONTENTS
76 EASA Saleh Al Gurg Union Insurance
94
108 Group M
118 Fletcher Building RTG
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MIDDLE EAST BROADCASTING GROUP (MBC)
10
Procurement excellence for the small screen WRIT TEN BY
JA MES HENDERSON PRODUCED BY
HEYKEL OUNI
AUGUST 2018
S U P P LY C H A I N
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m i d d l e e a s t . b u s i n e s s c h i e f. c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
MBC’s procurement division is driving real value for the flourishing Middle Eastern broadcaster
A 12
s the first broadcaster
the last decade. When Lorraine Black joined MBC in 2007 – as the company’s new Head of Procurement, she helped build a team numbering just four which was very transactional in its nature.
to provide a satellitebased free-to-air
Changing perceptions
24-hour television network
“There were no specific pro-
across the Arab world, The Mid-
cesses, it was a basic operation,”
dle East Broadcasting Center
says Black, who led and man-
(MBC) holds a unique place in the
aged the process of CIPS
region’s “Media & Entertainment”
Organisational Certification,
industry. Established in 1991,
which resulted in MBC being the
MBC now offers 16 channels,
first company in Dubai, UAE to
broadcasting a varied line-up of
achieve CIPS certification of
programs and series, including
excellence of its purchasing poli-
flagship shows such as: ‘Arab
cies and procedures in 2008 (a
Idol’, ‘Arabs Got Talent’, ‘theVoice’,
number of MBC’s team are work-
‘theVoice Kids’, and ‘Project Run-
ing on achieving their CIPs
way ME’… among many others.
certifications currently).
MBC is a premium content-
An analysis of the department
centric, audience-focused
was undertaken to understand
company whose success has
the skills of the existing staff and
been underpinned by a procure-
pinpoint gaps that needed to be
ment team that is setting new
filled to create an effective and
standards in the MENA region -
valuable procurement function
thus proving itself to be of real
for the business. An enterprise
added-value to the business, over
resource system (ERP) was
AUGUST 2018
S U P P LY C H A I N
“ The main challenges we faced was shifting the mind-set of our key stakeholders. Now, we work closely with all of our stakeholders, understanding the business and demonstrating where we add value” — Lorraine Black, Head of Procurement, MBC Group
13
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
S U P P LY C H A I N
implemented, processes and procedures introduced, and skills added, gradually building a well-rounded team. As all procurement professionals know, the support of key stakeholders in the business – especially in the C-Suite – is vitally important, and Black says MBC is no different. “The main challenges we faced was shifting the mind-set of our key stakeholders. Now, we work closely with all of our stakeholders, understanding the business and demonstrating where we add value. “We also got support from MBC CEO office which made it a lot easier to drive our ideas forward and get buy-in from the company’s senior management. That’s been really important in working with various departments in a collaborative way, rather than as a standalone function. After we showed that we can add value and leverage our relationships with suppliers, the decision was taken that departments would stop getting quotations without the support and involvement of the
“ Our revenue is largely derived from advertising, and as we have little direct control over regional ad market fluctuations, it is critical to keep our costs under control. That makes Procurement strategic to our long-term profitability and success. Their support has been essential to our migration from in-house systems to outsourced cloud services as part of our digital transformation efforts” — Joe Igoe, Group Director of Operations, MBC Group
procurement team. This has been a real positive shift,” Black concluded. But don’t just take the procurement team’s word for it; Joe Igoe – Group Director of Operations, comments: “Our revenue is largely derived from advertising, and as we have little direct control over regional ad market fluctuam i d d l e e a s t . b u s i n e s s c h i e f. c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
SERVICES
THE TECHNOLOGY DRIVING A PROCUREMENT TRANSFORMATION AT MBC
16
Business Intelligence Reports Business Intelligence reports have been the ERP solution to monitor spend managed through Procurement. The various dashboards are utilised for monitoring the compliance, category and contractual spend, procurement KPIs, procure-to-pay cycle, and supplier delivery performance. This data analysis has been utilised by the procurement team for further discussions on process improvements/potential opportunities for savings and value addition. E-Procurement The procurement team rolled out the E-Tendering system to modernise the procurement strategic sourcing activities. The use of this system has given a 360-degree view of the complete tendering process to all engaged parties. Automating the system which provides quick comparison tools and reduces the scope for human AUGUST 2018
errors has helped create a more efficient sourcing platform with reduced human effort. Contract Management System Effectively managing and monitoring the financial and operational performance is critical to every organisation. Bearing this underlying factor in mind, the manual contract administrative and management process was assessed and an in-house Contract Management System was customised and developed to meet our requirements. This system has been effective and efficient in: Automating and accelerating the contract administration and management; managing all procurement contracts and related milestones; Strengthening governance/compliance; stakeholder engagement and collaboration; better visibility through reports; and complete transparency of contract process.
S U P P LY C H A I N
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m i d d l e e a s t . b u s i n e s s c h i e f. c o m
S U P P LY C H A I N
Click to watch: Middle East Broadcasting video: Studio City 19
tions, it is critical to keep our costs
and drive forward efforts to grow the
under control. That makes Procure-
business sustainably. These included:
ment strategic to our long-term
spend analysis across the group,
profitability and success. Their support
encompassing various categories, sup-
has been essential to our migration
plier segmentation using the Krajlic
from in-house systems to outsourced
Model, assessment of procurement
cloud services as part of our digital
technologies and the alignment of
transformation efforts.�
MBC’s corporate and business strategy with that of the procurement depart-
Driving growth As part of its effort to shift attitudes
ment. On the benefits of the thorough
about the role of procurement, the team
research and planning that has been
at MBC carried out detailed analysis of
undertaken, Black comments: “With the
key strategic activities to understand
development of the procurement techm i d d l e e a s t . b u s i n e s s c h i e f. c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
“ As a team we were at the centre of a lot of conflict resolution, so we had to be skilled at providing solutions for the site. It took all of our expertise to make the project a cohesive one, pulling everybody together, making sure that all of the elements and all of the pieces of the puzzle actually fell down at the right time, in the right location”
20
— Durdana Farid, Procurement Manager at MBC Group
AUGUST 2018
S U P P LY C H A I N
nologies, we have been able to cater for
notably MBC’s $20mn facility in Dubai’s
the growing needs of business and ena-
Studio City district.
bling the shift from the cost only to the cost-plus-value model.
Completed in May 2017, the state-ofthe-art studios used for programming
“Efficient use of technology through
for MBC’s satellite network, primarily
effective collaboration with stakehold-
MBC1 and MBC3, and online portals,
ers has been leveraged for operational
complement its headquarters in Dubai
excellence and alignment of strategies,
Media City. At least seven shows are
while collaborative negotiation plans
produced at the studios, which the com-
have brought the best of industry knowl-
pany says are key to being able to
edge and commercial leverage on the
attract top talent, the right expertise,
table enabling multitude of benefits in
and bright, creative minds of the various
securing interruptive value propositions.
disciplines that are related to the crea-
“In addition, supplier value management is imperative to the success of
tive and production fields. The nature of TV schedules meant
procurement. So, a 360 degree view of
that the deadline was tight, with a pleth-
supplier positioning and business per-
ora of stakeholders to manage. In the
spective has been used to align our
absence of a contracting consultant,
critical suppliers with business strategy
the procurement team worked to
and growth.”
ensure all the elements that were needed to being the project in on time
Building the future
were in place.
With the company fully bought in to the
“A lot of the detail on a project like this
value offered by a skilled and dynamic
are small, but really important to its suc-
procurement function, the team has
cess,” says Durdana Farid, Procurement
grown, and now numbers 26 profes-
Manager at MBC. “The timeline was
sionals across MBC offices.
very demanding, and to hit our tight
As well as the best-and-braces work
deadline we had to ensure we were
the department oversees, it has proven
accurate with all of the detail, such as
invaluable on some major projects,
ensuring all elements of the project m i d d l e e a s t . b u s i n e s s c h i e f. c o m
21
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S U P P LY C H A I N
were compliant to their timelines, from authority approvals to contractors meeting their milestones, to the equipment being delivered on the right time and all the way down to the carpet and furniture for the studios. The deadline – four months, to be exact – meant that the procurement team had to be a highly effective conduit to bring together all stakeholders working on the project. “There was a lot of back and forth; and a lot of input from the procurement department,” Farid continues. “As a team we were at the centre of a lot of conflict resolution, so we had to be skilled at providing solutions for the site.
23
It took all of our expertise to make the project a cohesive one, pulling everybody together, making sure that all of the elements and all of
budget target. We spoke to hun-
the pieces of the puzzle actually fell down at
dreds of parties, leveraging the
the right time, in the right location.”
relationships we have built over
The procurement department’s established
the years, both within the com-
relationships with suppliers that have been
pany and with external partners,
developed and nourished over the years were
and were able to bring them
critical to the project’s overall success.
together to agree on really impor-
“The budgets were very tight, with minimum contingency,” says Farid. “So, despite of the
tant issues for the good of the project.”
fact that we had contracted system integrator and contractors, we went to each manufac-
Procurement never sleeps
turer, we have built relationships with and
The business of round-the-clock
negotiated with them directly, which helped
television means MBC’s procure-
the contractor bring down costs and hit the
ment team is not perhaps typical of m i d d l e e a s t . b u s i n e s s c h i e f. c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
24
AUGUST 2018
S U P P LY C H A I N
25
“ We’re not working in a manufacturing plant, or for a bank; we’re working in a fast-paced and competitive creative industry. It means we have to be really dynamic, versatile and slick at what we do” — Lorraine Black, Head of Procurement, MBC Group
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
MIDDLE EAST BROADCASTING GROUP (MBC)
Solutions , From Design to Reality and Beyond.. TSL FZ LLC is a specialist in System Design and Delivery, TSL FZ LLC is a part of TSL HOLDINGs, The Group itself has been in the system integration Business for over 35 years now with its HQ in UK, The Dubai entity was setup in the First Quarter of 2008, TSL FZ LLC has made a name for itself for working on projects with tight and challenging civil timelines, Building on the strong reputation of TSL the Dubai entity has been successfully deploying cutting edge technology on time and on budget. BILAL AHMED Head of Operations Fax +971 (0) 44329142 Office +971 (0) 44329143 Tel +971 (0) 502936086 bilal.ahmed@tsl.co.uk
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S U P P LY C H A I N
have our budgets and ensuring we’re onboarding the correct partners and suppliers, and we also know that we have a duty to make sure the end product is a
1991
Year founded
high-quality one.” Again, says Farid, the work that the procurement team has put in over the years to build relation-
1,800 Approximate number of employees
ships is paying dividends. “We often work in a live environment, so we need people who we can call in to come in and fix an issue at 2am, or ensure a delivery is made in the middle of the night. We need to have that flexibility and
those working in other industries. As Black puts it: “We’re not working in a
that’s when we need something to be free of charge or if some-
manufacturing plant, or for a bank; we’re
thing goes wrong and we need a
working in a fast-paced and competitive crea-
new camera, so it’s important our
tive industry. It means we have to be really
suppliers understand our needs.
dynamic, versatile and slick at what we do.
“We cannot have suppliers that
“Procurement in this region can often be
we don’t have that kind of relation-
very fast, transactional and functional, so it’s
ship with, because the outcome
often about pricing structures and cutting
or the effect that it could have on
costs. But, we work in an environment where
one of our shows on the commer-
the content and quality that we put on-screen
cial impact it could have could
has to be good. The production values on
be huge. So, we ought to be very
shows such as Arab Idol, The Voice and Top
careful when we deal with our
Chef have to be first-class, so on one hand we
suppliers, that we are getting m i d d l e e a s t . b u s i n e s s c h i e f. c o m
27
MIDDLE EAST BROADCASTING GROUP (MBC)
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“ MBC procurement team has not only saved us a lot of money in a challenging market, but has helped us get closer to our most important suppliers and partners, at a time of major industry changes” — Sam Barnett, CEO, MBC Group
AUGUST 2018
S U P P LY C H A I N
suppliers who actually understand our business and what our requirements are.”
value,” she says. “Even with the big productions, we need the buyer there so they
The efforts have been recog-
understand any problems and
nised across the company, right
are able to resolve issues. That
to the very top, says MBC’s CEO,
relationship with the supplier on
Sam Barnett, who comments:
the ground is really key.
“Our procurement team has not
“As a department, our people
only saved us a lot of money in a
have to be versatile and have
challenging market, but has
really good communication
helped us get closer to our most
skills. We can teach buying
important suppliers and part-
skills and negotiation, but the
ners, at a time of major industry
ability to adapt to situations and
changes.”
communicate effectively is what we want.
Buying power
It is a strategy that appears to
In a bid to improve the procure-
be paying dividends, says Farid:
ment function yet further, Black
“I deal with a lot of suppliers and
says MBC is changing the behav-
one constant feedback that we
iour of its buyers to ensure they
always receive is that MBC pro-
are recognised as influencers
curement is one of the most
within the business. The days of
engaged procurement depart-
buyers sitting at their desks,
ments in the industry.”
removed from stakeholders, are gone – it’s all about engagement and interaction. “We need our buyers to be on the ground and understand the dynamics of the business if we want to continue to add real m i d d l e e a s t . b u s i n e s s c h i e f. c o m
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– Murat Ungun, Senior VP Supply Chain Kudu Corp
HAVE YOU SEEN OUR OTHER TITLES?
L E A D E R S H I P S T R AT E G Y
32
A NEW DAWN FOR
CYBERSECURITY IN THE MIDDLE EAST AUGUST 2018
33
BUSINESS CHIEF MIDDLE EAST TALKS TO SENIOR VICE PRESIDENT OF TOSHIBA EUROPE, MAKI YAMASHITA, ABOUT HOW VITAL CYBERSECURITY IS IN THE REGION WRITTEN BY
SEAN GALEA-PACE
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
L E A D E R S H I P S T R AT E G Y
F
or most executives, ensuring that their company achieves success all over the world is at the top of
their lists. Senior Vice President, Toshiba Europe, Maki Yamashita, is no different. With over 18 years of experience working for the Japanese technology company, he knows the importance of growing the brand at home and expanding abroad. “My career to date has helped me acquire different skills covering a large spectrum of fields, including product and production planning, strategy planning, sales and marketing, and general administration,” Yamashita says. 34
It’s hard to disagree. Having originally been recruited by Toshiba’s Tokyo headquarters in 1993, Yamashita was tasked with handling the coordination of the company’s US PC manufacturing operation and took on different operational responsibilities. Seven years later, Yamashita moved to France to work as Assistant General Manager before later returning to Japan to take control of global strategy. In 2005, Yamashita was on the move again as he was stationed in Germany to work as Assistant Senior Executive Vice President, before becoming General Manager in Singapore to grow Toshiba’s AUGUST 2018
Toshiba netbook nb520 Picture: lightfiction
B2B business. After successfully helping to build and shape Toshiba there, Yamashita switched to his current role in Europe as Senior Vice President. Reflecting on his career to date, Yamashita maintains that his progression within the company through various roles has given him a broader understanding of the Toshiba brand. “It has enabled me within my present role to build a network both inside and outside the company, from manufacturing and engineering to product and business planning, admin, sales and marketing. This network has proved invaluable to me both when setting up new solutions and in creating the business models to take these to market in multiple countries.�
AN ESTABLISHED TECHNOLOGY GIANT Although Yamashita is now a firm part of the Toshiba furniture, the Japanese brand began life under a different name 145 years ago. In 1873, the Ministry of Engineering in Japan commissioned Hisashige Tanaka to develop telegraphic equipment. The company has since gone through various iterations within the engineering space and moved with technology transformation, becoming nicknamed Toshiba, a title which was made official in 1978 and has stuck ever since. m i d d l e e a s t . b u s i n e s s c h i e f. c o m
35
L E A D E R S H I P S T R AT E G Y
“ IN TODAY’S PROFESSIONAL CLIMATE, THREATS SURROUNDING IT SECURITY AND DATA PROTECTION ARE CONSTANTLY GROWING IN BOTH FREQUENCY AND MAGNITUDE” — 36
Maki Yamashita, Senior Vice President, PC & Solutions EMEA, Toshiba Europe GmbH
Fast forward to 2018, and the multinational tech giant is renowned for its software and hardware offerings in the B2B and B2C sectors. Yamashita is especially proud of its latest security offering, TMZC. Having already introduced Toshiba Mobile Zero Client (TMZC) on its award-winning B2B notebook products, Toshiba understands the importance of ensuring security whilst using mobile devices. Yamashita is confident that TMZC eradicates any potential AUGUST 2018
37
problems that may arise. “With
uses Toshiba’s genuine in-house developed
TMZC, no data remains in the
Basic Input/Output System (BIOS), providing
machine once you’ve turned it
total security through its device. This solution
off. This headache is completely
can be customised to the Virtual Desktop
eliminated,” Yamashita explains.
Infrastructure (VDI) of the customers because
“TMZC uses a customer’s existing infrastructure and does
we have direct access to our developers.” Toshiba aims to ensure that security stand-
not require any modification of
ards are maintained at all times, however,
their existing system – it is
Yamashita is continuously wary of the threats
extremely easy to implement.
surrounding IT security and data protection.
Another advantage is that TMZC
“In today’s professional climate, threats m i d d l e e a s t . b u s i n e s s c h i e f. c o m
L E A D E R S H I P S T R AT E G Y
surrounding IT security and data
company and employee data – as well as
protection are constantly grow-
the inadequacies of many IT systems in
ing in both frequency and
protecting against such attacks.”
magnitude; one only needs to think of the recent WannaCry ran-
SUCCESS IN THE MIDDLE EAST
somware cyberattack, which
Growing brands abroad and developing
spread across 150 countries
a localised service as an MNC doesn’t hap-
globally, and is estimated to have
pen overnight. Yamashita is well aware of the
cost the worldwide economy
challenges Toshiba faces when it comes to
approximately $7.9bn.
sustained success in the Middle East. “One
“Such an ambitious and far-
38
of the biggest challenges Toshiba has
reaching attack perfectly
encountered since Toshiba started operating
demonstrates the increased
in the region is the size of the territory. We
intelligence and guile of today’s
have found, during the recent GITEX
cyber criminals in their relent-
event, that awareness of the
less pursuit of valuable
Toshiba brand is high in the Mid-
“ SECURITY NEEDS TO BE THE NUMBER ONE PRIORITY TO SUCCESSFULLY EMBRACE THE BENEFITS OF MOBILITY WITHOUT FALLING VICTIM TO THE INCREASED THREAT OF CYBERCRIME” — Maki Yamashita, Senior Vice President, PC & Solutions EMEA, Toshiba Europe GmbH
AUGUST 2018
dle East, higher even than in the Western
utors and dealers,” Yamashita
territories. However, reaching the end user
explains. “Supported by our
and getting ‘air-time’ with them works differ-
regional headquarters, Toshiba
ently in the Middle East.”
Gulf FZE, first established in
The importance of being adaptable
Dubai in 1997, this network pro-
and finding out what is successful in loca-
motes Toshiba's capabilities as
tions like the Middle East cannot be
a world-leading diversified manu-
underestimated. Toshiba has been a well-
facturer and marketer of
established force in the Middle East for
advanced electronic and electri-
a number of years and the company main-
cal products and systems.”
tains a keen interest in ensuring the brand continues to thrive in a competitive sector. “Toshiba's presence in the Middle East dates back many years and has now grown to a region-wide network of Toshiba Group companies, distrib-
A FALSE SENSE OF SECURITY A 2016 PricewaterhouseCoopers (PwC) report into cybersecurity in the Middle East entitled A false sense of security? supported
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
39
L E A D E R S H I P S T R AT E G Y
much of Yamashita’s concerns. It was high-
its companies must take heed
lighted in the report that Middle East
and prioritise their online security.
companies do invest in security technology but are quite often not supported by people,
mobile and flexible working
processes and governance which conse-
practices, security needs to
quently creates a ‘false sense of security’.
be the number one priority to
The report detailed that as a result of cyber
successfully embrace the bene-
incidents like security breaches in 2017, com-
fits of mobility without falling
panies in the Middle East suffered larger
victim to the increased threat
losses than other regions. It found that 56%
of cybercrime.”
of recorded incidents resulted in losses to
40
“As organisations adopt more
But Toshiba, like all brands,
business greater than $500,000, compared to
can’t afford to rest on its past
33% globally. The report states that attacks
successes. In terms of the future,
ranged from actual theft of data, to co-ordi-
Yamashita has an idea of what
nated spam emails or phishing attempts.
direction his industry is heading
These figures are alarming and outline the
towards and how vital continued
serious problem that Middle Eastern compa-
success in the Middle East is.
nies have with ensuring their information is kept secure at all times.
“Toshiba will continue to focus on delivering its award-winning
As far as Toshiba is concerned, security
range of B2B notebook products
always comes first but Yamashita maintains
with particular focus on the thriv-
that digital transformation and continued
ing banking and finance sectors
changes to technology are inevitable and
in the Gulf region,” he explains.
should be embraced.
“Whether preparing for regula-
“Financial organisations, more than most,
tory change, protecting against
handle sensitive – and valuable – data, mak-
the ever-expanding cyber threat
ing the sector ripe for a focused attack. July's
landscape, or addressing trends
hack on Italy's largest bank, UniCredit, for
like mobile working, 2018 will
example, put the data of up to 400,000 cus-
be a year of digital transforma-
tomers at risk, not only proving the sector’s
tion and learning for many
susceptibility to cybercriminals, but also that
organisations.”
AUGUST 2018
41
“ COMPANIES MUST TAKE HEED AND PRIORITISE THEIR ONLINE SECURITY” — S enior Vice President, PC & Solutions EMEA, Toshiba Europe GmbH m i d d l e e a s t . b u s i n e s s c h i e f. c o m
VISIT OUR WEBSITE
R E A D T H E L AT E S T I S S U E
TECHNOLOGY
44
Mobile tech for the
underban WRITTEN BY
AUGUST 2018
OLIVIA MINNOCK
Juvo aims to offer financial inclusion for all by creating financial identities and credit history for those in underbanked communities. This has been made possible by the growth of mobile, as Business Chief found out
45
nked m i d d l e e a s t . b u s i n e s s c h i e f. c o m
TECHNOLOGY
I
n an increasingly digitalised world, a huge proportion of the global population still lacks access to proper banking facilities.
Without the benefit of plastic or mobile apps, building up a digital identity and credit history can be near impossible. “Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded,” explains Aristotle Socrates, Chief Data Officer. “We partner with mobile network operators to reach these billions of people – many of whom are in cashbased economies.” Juvo combines consumer internet, predictive
46
algorithms and modern mechanics to implement a data-science based ‘Identity Scoring’ system to augment a credit score, which would otherwise be decided from the top down, but instead is made via pre or post mobile payments, i.e. from the bottom up. Essentially, Juvo allows people without a credit score to build up a credit history, reaching towards its goal to ‘empower the billions of unbanked people in the world to create financial identities and access financial services’. The company’s Identity Scoring service uses a combination of data science, machine learning and mechanics to create identities for those who don’t have a credit history through prepaid mobile accounts, allowing users to build up an identity and use banking options they may not have had before. The company was founded in 2014 and AUGUST 2018
launched its service publicly in 2016, having since grown from 100mn to 500mn users. The company now employs 70 people and has enabled over 400mn transactions to date, boasting 1mn active subscribers per day. Juvo operates across 25 countries in North and South America, Europe and Asia, working with partners that include Sprint, Telefonica and Deutsche Telekom. “We give consumers the choice, effectively, of being a post-paid user vs a pre-paid user. We save people trips to the top-up station, which saves them time. I think every human being in the world understands the value of time,” Socrates explains.
From astrophysics to fintech Socrates trained as a theoretical astrophysicist but is now becoming more of a technologist. “My general approach to tackling quantitative problems remains strongly informed by my past life as an astrophysicist.” He moved further into the tech space in 2015 when he joined Juvo as Chief Data Scientist. “The field of data science was heating up, and it seemed like a promising place to explore and come up with interesting ideas. After speaking with founder Steve Polsky, I thought Juvo was the best idea I had ever heard, at least in Silicon Valley.” Socrates describes the move as a risk, since Juvo was then just a startup with 10 employees but adds that this was actually m i d d l e e a s t . b u s i n e s s c h i e f. c o m
47
TECHNOLOGY
a selling point. “I was driven by the idea itself, and the opportunity of being able to create something significant from scratch.” It is clear the data scientist strongly believes in Juvo’s central mission to develop financial service access to the 3bn people in the world who are underbanked. “The only way to accelerate the placement of those people into a modern financial system is by building a credit or financial knowledge base atop of, and across, multiple 48
operators. And that’s effectively what we’re doing.”
Data Science in finance In his role as Chief Data Scientist,
having people with some form of scientific experi-
Socrates has a wide scope of
ence of training – from either academia or a tech
responsibilities. “The term ‘data
company – gives an additional boost in capacity
scientist’ is a bit funny since there’s
in various areas of work and ideation.”
no science without data,” he muses.
Socrates adds that while many companies use
“Data Science means different
data science to support other departments
things at different companies.”
through creating algorithms, Juvo is different. “At
However, Socrates is keenly aware
Juvo, our Data Science function is a lot broader,
that the importance of data scientist
which is understandable given our mission. In
is becoming increasing recognised
addition to our core function, we do some
by many businesses, particularly at
engineering, product management, partnership
a time of rapid digitisation. “Every-
management and even sales and business
one seems to be discovering that
development,” he explains.
AUGUST 2018
“ Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded” — Aristotle Socrates, Director of Data Science, Juvo
Mission possible?
the ability generate huge meaningful amounts of
In order to allow users to build up a
transaction data. However, they are limited in
financial identity via mobile, it has
their ability to act on it. This requires data science
been necessary to partner with
to play an organisational role that is relatively
some of the largest telecoms
expansive on the organisational spectrum.” Juvo
carriers in emerging markets. “Our
will further utilise these carriers to build on its
mission is to create a mechanism for
impressive number of subscribers for the future.
generating credit by establishing
“The path is, in my view, quite clear: integrate with
meaningful financial identities for
more mobile network providers!”
mobile phone users in the develop-
Juvo builds up its financial profiles by offering
ing world. That’s a big, difficult and
gradually larger loans. “It’s interesting to
broad problem. Our general line of
understand why mobile network operators don’t
attack is through carriers who have
do this in the same way we do – the simple m i d d l e e a s t . b u s i n e s s c h i e f. c o m
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TECHNOLOGY
answer is risk,” Socrates explains. “We end up taking a tremendous amount of risk on the path of building a credit history for users, at scale. All mobile operators offer small emergency loans, which might cover a single phone call for example, but at Juvo we offer a whole month’s worth of service per loan. Our Data Team was compelled to take this risk to help fulfil the vision and mission of our company: to build meaningful credit. “We really didn’t understand how radical our loan sizes were until well after we’d been offering them for many years,” Socrates admits. “We 50
figured out how to manage this risk after the fact. In the beginning, you’re just trying to make things work!” Juvo’s goal for the future is to expand its service to help financial service providers. “We want to create a financial platform that allows financial service providers to gain access to the transaction histories that we’re building on top of mobile network operators. As I see the problem, the reason the underbanked are underbanked is that in their locale, the data infrastructure required to connect transaction history to capital, is non-existent or seriously inadequate. Right now, we’re working towards constructing a platform that allows end-users and financial institutions to bridge that gap.”
AUGUST 2018
“ We save people trips to the top-up station, which saves them time. I think every human being in the world understands the value of time” — Aristotle Socrates, Director of Data Science, Juvo
51
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
CONSTRUCTION TECHNOLOGY FORUM 2018
25-26 SEPTEMBER 2018, ADDRESS HOTEL DUBAI MARINA
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CITY FOCUS
BEIR City Focus
54
AUGUST 2018
BIO
RUT Business Chief gives every angle on the Lebanese capital of Beirut in this month’s City Focus EDITED BY
BEN MOUNCER
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
55
CITY FOCUS | BEIRUT
56
O
ne of the world’s oldest cities and a shining beacon on the eastern coast of the Mediterranean Sea, Beirut is both
the capital and economic hub of Lebanon. As the nation’s largest city with a population of roughly 1.5mn inhabitants, the city has been ranked as a Beta World City by the Globalization and World Cities Research Network and serves as Lebanon’s chief seaport. The original downtown business district that was ravaged by decades-long civil war has been revitalised as a global destination for the financial industry and Middle Eastern tourism. AUGUST 2018
57
THE ECONOMY OF BEIRUT
Home to the Beirut Stock
Beirut’s economy is primarily a
Exchange, the Union of Arab Banks
service economy, with the chief
and Union of Arab Stock Exchanges,
industries being banking and tour-
banking and finance is Beirut’s domi-
ism. It has become more diversified
nant industry sector. Due to the
in the years following the end of the
liberal foreign exchange system,
civil war, with the publishing, manu-
favorable interest rates, solid gold-
facturing, advertising, construction
backed currency, and banking
and professional services industries
secrecy laws that have attracted vast
also having a significant presence in
amounts of institutional investors, the
the city.
IMF estimates that Beirut’s banking m i d d l e e a s t . b u s i n e s s c h i e f. c o m
CITY FOCUS | BEIRUT
system with $152bn on its balance sheet is more than triple the local GDP of $43bn. Beirut has held up as a Middle Eastern financial sector on account of the Lebanese bank-
Currency
Lebanese pound
ing system’s protection of foreign capital and earnings and the
More than
ability to freely exchange the
1 Million
local currency with virtually any foreign alternative. Lebanon’s
Population
colossal foreign reserves – with the central bank able to cover 58
most of the Lebanese currency in the market - can prevent or mitigate financial crises easily. Dubbed “Paris of the Middle
Nearest airport
9 km Beirut–Rafic Hariri International Airport
East” prior to the Lebanese Civil War, Beirut was a popular tourist destination for visitors from Arab
Europe and the Americas as well
League nations. It regained its
as the Arab League.
notability as a hotspot for
Business tourism serves as a
affluent tourists in the mid-2000s
backbone of Beirut’s economy,
with the second-highest tourist
but medical tourism has been
spending levels exceeding
gaining traction. This is large part
anywhere in the Middle East
due to the world-class hotels and
and North Africa, totaling $6.5bn.
medical centres, plus its proximity
Millions of visitors mainly include
to other Arab nations; medical
returning expats but the city has
tourism has been growing steadily
gained millions of visitors from
since 2009 at about 30% per year.
AUGUST 2018
59 N O TA B L E C O M PA N I E S
Banque du Liban Banque du Liban is Lebanon's central bank and os headquartered in Beirut. It plays a major role in the local economy, both as a safeguard of economic stability and as an employer, with several thousand workers. Banque du Liban is responsible for issuing the Lebanese Pound and maintaining oversight and regulation of the financial markets and entire banking sector.
In recent years, Banque du Liban has adopted an ambitious policy for investing in startups to help position Beirut as a major tech hub of the Middle East. They are encouraging commercial banks to invest in tech startups by guaranteeing up to 75% of the capital investments meeting certain criteria. Banks must invest in at least 10 different startups in order to receive the full suite of benefits that Banque du Liban's guarantee provides.
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
CITY FOCUS | BEIRUT
The city has gained millions of visitors from Europe and the Americas as well as the Arab League
60
AUGUST 2018
N O TA B L E C O M PA N I E S
Byblos Bank Byblos Bank is Lebanon's third-largest bank and has had the highest Tier 1 capital to assets ratio among its competitors for five years running. It operates 86 branches in Lebanon with over 2,500 employees and its headquarters in Beirut employ a significant number of locals. Eastline Digital Eastline Digital is one of the first companies in the MENA region to provide a full range of digital marketing and SEO services. The company was founded in 2006 as internet usage began to grow in the Middle East and began serving both Middle Eastern and global brands, developing Sweepz as a result. Sweepz is currently the only web platform structured for social media campaigns that supports Arabic. Eastline Digital has won two Webby awards for Best Green Site and the People's Voice Award, as well as the Endeavor Advocate Award. With just 11 employees, the lean startup strives to be the leading digital marketing agency in the Middle East. m i d d l e e a s t . b u s i n e s s c h i e f. c o m
61
CITY FOCUS | BEIRUT
N O TA B L E C O M PA N I E S
Berytech Berytech is a business development centre, incubator and venture fund based in Beirut with $51mn from various banks in Lebanon and Banque du Libon's initiative. The Berytech Fund invests in small and mediumsized Lebanon-based startups in the knowledge economy that are in the acceleration phase.
62
Leap Ventures Funded by Banque du Liban’s guarantee, Leap Ventures is a growth-stage venture fund based in both Beirut and Dubai. Focusing on tech startups that have achieved Series B funding, Leap invests in companies with established market presence.
AUGUST 2018
N O TA B L E C O M PA N I E S
AZADEA Group The Azadea Group owns and operates more than 50 different franchises across the MENA region. The Beirut-based company employs over 11,000 people in 13 countries and 600 stores. Azadea's flagship store is still in Beirut and the group remains a major local employer with a portfolio of brands that includes Old Navy, Stradivarius and Virgin Megastore. 63
Azadea's flagship store is still in Beirut and the group remains a major local employer m i d d l e e a s t . b u s i n e s s c h i e f. c o m
17-18 September 2018 Abu Dhabi, UAE
Excellent Opportunities For The Digital Market
US$1.3 Trillion Worth
Global Digital Transformation Spend in 2018
US$155 Billion
MENA Region IT Spending in 2018
US$16.9 Billion
USD 95 Billion The digital market could add USD 95 billion per year to Middle East’s annual GDP by 2020
Digital transformation presents projected to generate up to $16 billion in extra revenue annually for businesses in the middle east region.
The Digital Transformation Summit 2018 will bring together top – tier information executives (CEOs, CIOs, CTOs, CDOs, COOs, IT Directors, Digital Transformation Experts and Consultants) from various industries to interact and engage in high level content and discussions on current trends and developments disrupting the digital ecosystem and how this will impact their business digital strategy and competitiveness going forward.
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Leveraging Emerging Technologies And Building New Delivery Models To Unleashing Digital Potential In Business Operations And Service Delivery
At Digital Transformation Summit, Hear From C-Level Decision Makers From 7 Industries Including: Major Mohammad Obaid Al Obaidly, Deputy Director Digital Transformation & Systems Development, Abu Dhabi Police GHQ
Umar Saleem, Chief Transformation Officer, Al Jaber Group
Graham Colclough, Partner, UrbanDNA UK
Anshul Srivastav, Chief Information Officer & Digital Officer, Union Insurance
Delel Chaabouni, CIO - Middle East & Africa, PepsiCo
Sherif Gomaa, Chief Executive Officer, Obeikan Printing & Packaging – Obeikan Investment Group
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Cloud computing
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T O P 10
66
AUGUST 2018
Top 10
CEOs in the
Middle East
The Middle East is a region of great wealth and power. The top CEOs within the area demonstrate its diversity as countries represented spring from all across the globe E DI T E D BY
B E N M OU NCE R
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
67
T O P 10
09
Samer Abu Ltaif www.microsoft.com
Microsoft appointed Samer Abu Ltaif as its CEO for the Middle East and Africa. His duties include supporting initiatives aimed at enterprises, governments, small business, developers and medium-sized. Based in the United States, Microsoft is a multinational technology company that manufacturers and develops software, consumer electric, personal comput68
10
Takreem El-Tohamy www.ibm.com
In 2005, Takreem El-Tohamy became the CEO of IBM Middle East and Africa. International Business Machines – perhaps better known by its acronym, IBM -- is a technology company based in the United States with a presence throughout the world. In 2017, IBM posted revenue of $79.1bn. A manufacturer of software, middleware and software, IBM also offers consulting and hosting services. AUGUST 2018
ers and more. In 2017, Microsoft posted revenues of nearly $90bn.
07
Mohamed Samir https://us.pg.com
Mohamed Samir is the CEO of Procter & Gamble’s India, Middle East and Africa (IMEA) region, a role he’s held since July 2014. Procter & Gamble is a consumer goods corporation with a global reach that is headquartered in the United States. Its expansive portfolio includes foods, personal care products, cleaning agents and many more. As of 2017, Procter & Gamble reported revenues of $65bn.
08
Mario Spangenberg www.gm.com
Mario Spangenberg was selected for the position of CEO for General Motors (GM) Africa and the Middle East. This is a post that he began on January 1, 2013. A car manufacturer based in the United States, GM offers consumers a variety of different vehicle brands including Chevrolet, Lincoln and Cadillac. The company announced revenues of $145.5bn as of 2017. m i d d l e e a s t . b u s i n e s s c h i e f. c o m
69
T O P 10
05
Sjoerd Leenart www.jpmorgan.com
JP Morgan Chase appointed Sjoerd Leenart as the company’s CEO for the Middle East, Turkey and Africa regions. JP Morgan Chase is the largest bank in its home country of the United States and is the second most valuable bank in terms of market capitalization. As of 2017, JP Morgan
70
06
Sanjeev Chadha
Chase posted revenues of $99.6bn. It is divided into a number of divisions including investment banking, private wealth management, securities ser-
www.pepsico.com
vices, private banking, treasuries,
Since September 2013, Sanjeev
asset management and others.
Chadha has been PepsiCo’s CEO for Asia, the Middle East and Africa (AMEA). Headquartered in New York, United States, PepsiCo was formed in 1965 as a merger of Pepsi-Cola and Frito-Lay. In addition to snack foods and beverages, PepsiCo also offers juices, sports drinks, breakfast foods and a myriad of other products. This multinational company distributes its products across more than 200 countries and posted revenues of $43.3bn in 2017. AUGUST 2018
03
Yves Manghardt www.nestle.com
Yves Manghardt has been the Chairman and CEO of Nestlé Middle East since October 2009. Headquartered in Switzerland, Nestlé has been the world’s largest food company, based on revenue, since 2014. In 2017, the company revealed that it had revenues of nearly $91bn. Selling baby food, coffee, pet foods, breakfast
04
Dietmar Siersdorfer
cereals, ice cream and a myriad of other foods, Nestlé has numerous popular brands under its namesake.
www.siemens.com
In December 2013, Dietmar Siersdorfer became the CEO of Siemens Middle East and United Arab Emirates divisions. A German company headquartered in Munich and Berlin, Siemens is Europe’s largest industrial manufacturing company. Serving the entire globe, Siemens manufacturers and sells products such as medical technology, fire alarms, power generation technology and more. In 2017, the company reported a revenue of $110bn. m i d d l e e a s t . b u s i n e s s c h i e f. c o m
71
T O P 10
72
02
Georges Elhedery www.hsbc.com
Since July 26, 2016, Georges Elhedery has been the CEO of HSBC Bank’s Middle East and North Africa (MENA) region. Based in London, England, HSBC Bank -- which employs more than 228,600 people worldwide -- reported revenues of $51.4bn in 2017. In addition to corporate, retail personal and investment banking services, HSBC Bank also provides mortgage loans, credit cards, wealth management and other services.
AUGUST 2018
01
Nabil Habayeb www.ge.com
Nabil Habayeb is the CEO for
73
United States-based GE’s interests in the Middle East. With a focus on lighting, oil, aviation, gas, healthcare, additive manufacturing, finance, power, transportation, digital and renewable energy, Nabil Habayeb is president and CEO of the company’s Middle East, North Africa and Turkey (MENAT) region. The company, which employs about 313,000 around the world, posted revenues of $122bn in 2017.
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
December Dubai, United A ABOUT HITEC Hospitality Industry Technology Exposition and Conference (HITEC®) is the world’s largest hospitality technology exposition and conference brand. HITEC Dubai 2018, co-produced by Hospitality Financial and Technology Professionals (HFTP®) and Naseba, will feature 30+ speakers, 500+ hospitality stakeholders and 50+ solution and service providers. The show will give Middle East buyers currently worth over USD 75 billion, access to global top solution providers in hospitality market, through a top-notch education program planned by the expert HITEC Dubai Advisory Council, as well as an exhibition debuting the latest in hospitality technology, and a summit with one-to-one business meetings.
5
Ho Stak
www.hitec.org/dubai Amir Abdin | Marketing Manager | amirabdin@naseba.com | +97144557920
r 5-6, 2018 Arab Emirates
500+
ospitality keholders
40+
30+
Solution and service providers
Industry expert Speakers
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AUGUST 2018
S U P P LY C H A I N
Staying ahead through digitisation WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
HE Y K EL OUNI
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
77
EASA SALEH AL GURG GROUP LLC
Key executives at the Easa Saleh Al Gurg Group LLC discuss how introducing a world-class supply chain has made the business a leader for the future
E
stablished alongside the evolution of Dubai, the Easa Saleh Al Gurg Group LLC (ESAG) has grown organically to become one of the leading business houses in the UAE. Now
commercialised into various necessities, it has tapped into key areas of progression in the Mid-
78
dle East, such as infrastructure and services, manufacturing and retail, housing six joint venture partners across a number of divisions. Representing 27 companies, the diverse business encompasses a consolidated structure in the management of its finances, legislation, corporate governance and IT operations. While businesses are able to rule independently alongside its robust framework, as well as developing their own business strategies, the business has sought to consolidate a number of areas, such as its purchasing, finances and legislative operations, believing that its true strength lies in numbers. Using innovative, sustainable and progressive practices, ESAG aims to remain at the forefront of changing market and industry trends, ensurAUGUST 2018
S U P P LY C H A I N
79
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
EASA SALEH AL GURG GROUP LLC
ing that its product and service offerings
ing ways to reduce costs, but drive higher
meet the needs of its customers and are
quality across its operations.
aligned with Dubai’s Smart City vision. To unlock further business growth,
“Five years ago, supply chain was not managed systematically at ESAG. Our
ESAG decided to undergo a deep dive
Chief Financial Officer, Werner Flaig,
into its supply chain functions in order to
introduced the concept of supply chain to
drive increased value across the business
the firm. When I came on board, the first
and remain competitive against new play-
priority was to understand different busi-
ers in the market.
nesses and add value into these
A family owned business, Abdulla Al
diversified units which would make us
Gurg has sought to build a business in
unique,” explains Irfan Kapadia, Group
alignment with Dubai’s 2020 vision, with
Head of Supply Chain.
the aim to make ESAG’s operations increasingly efficient, with a focus on find-
With 97 individuals situated across the supply chain, carrying out procure-
Your global transport and logistics partner www.ae.dsv.com | info@ae.dsv.com
With a strong presence and understanding in the Middle East - our services comprise of end to end solutions that bring value to your supply chain. We deliver your cargo safely, securely and on time anywhere in the world by air, sea, road and rail.
Tel : +971 4 4408 100 Fax : +971 4 4408 110
S U P P LY C H A I N
ment, logistics, demand planning,
Strength in consolidation
inventory planning and warehouse
In order to remain competitive, ESAG
management operations, ESAG’s
has adopted strategic sourcing as part of
diverse supply chain structure also
its cost structure and has formalised the
encompasses three individuals at Cor-
way it seeks to gather information. This is
porate Office undertaking its supply
then used to consolidate its require-
chain planning and governance activi-
ments, providing economies of scale
ties, as well as an operational team
when negotiating with suppliers.
under Kapadia’s leadership. “Companies are increasingly using
“We don’t just focus on local vendors or those based in one part of the world but
their supply chain to compete and gain
try to have multiple sourcing avenues
market share,” adds Kapadia. “Supply
globally. If I have two suppliers, we try
chain excellence is more widely
to have another two from the farthest
accepted, and we are no exception to it.”
regions so it does not affect the supply 81
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
EASA SALEH AL GURG GROUP LLC
BIO
82
Abdulla Fareed Al Gurg Group CEO, Easa Saleh Al Gurg Group LLC Abdulla Al Gurg is the Group Chief Executive Officer of Easa Saleh Al Gurg Group LLC, a multidivisional conglomerate with 27 companies. The Group’s diverse product and business interests predominantly include retail, building and construction, industrial, real estate and joint ventures. Under his tenure the Group has expanded its footprint in the GCC region; in the Sultanate of Oman, Iraq and the Kingdom of Saudi Arabia. Abdulla has also been instrumental in leading the activation of a Treasury Management System, helping establish the first in-house Bank in the GCC region. He is also an active Board member within the Group’s joint ventures, namely Al Gurg Fosroc LLC, Siemens LLC, Al Gurg Smollan and Al Gurg Unilever, Akzo Nobel Decorative Paints LLC and Siemens Healthineers. Abdulla is also on
AUGUST 2018
the Board of Directors for Drake & Scull International. Abdulla‘s leadership has enabled the Group focus on encouraging a learning environment through a dedicated Learning & Development Centre. His views on entrepreneurship and family businesses are constantly sought out in leadership forums. Abdulla is a member of the Board of Directors of the Easa Saleh Al Gurg Charity Foundation. In recognition of the Foundation‘s charitable efforts, he was the Lloyds TSB Torchbearer for the London 2012 Olympic Torch Relay.
S U P P LY C H A I N
83
chain. The same goes for our local
procurement activities. We know the
suppliers,” explains Kapadia.
shortest logistics time window and can
“We have streamlined a lot of our pur-
optimise cost. This gives us an advantage
chasing where we have received over
for the future to be competitive in markets
30% savings in many of our companies
which are rapidly changing in this region.”
because of our consolidation. This all
Additionally, with a number of suppliers
adds up into our supply chain savings,”
utilising different systems, ESAG has had
observes Abdulla Al Gurg, Group Chief
to become increasingly agile.
Executive Officer. “This has provided a number of advantages,” adds Flaig. “Automatically, we manage compliance and speed in the supply chain and our
“There are certain parameters which we set for supply chain, which enables us to build our strategy and adopt more towards external parties. It’s been a learning experience for us” says Al Gurg. m i d d l e e a s t . b u s i n e s s c h i e f. c o m
EASA SALEH AL GURG GROUP LLC
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BIO
Irfan Gafur Kapadia Group Head – Supply Chain Easa Saleh Al Gurg Group LLC Irfan is a procurement & supply chain strategist with over 15 years of global experience in diversified industries ranging from Manufacturing, Trading, FMCG & Retail offering senior level expertise in strategic sourcing, supply chain transformation, supplier relationships and change management
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with companies based in USA and UAE. He has driven processes, developed systems and established centralized supply chain & procurement departments for the companies he has been associated with. Currently working as Group Head of Supply Chain in ESAG, he has transformed procurement department from a clerical function to become the integral part of execu-
S U P P LY C H A I N
The use of data
Taking a measured and deliberate
In the age of digitally savvy and
approach to investing in its transfor-
empowered customers, ESAG are
mation journey, the company has
known as pioneers in adopting new
assessed numerous factors, such
technologies, exploring opportuni-
as its existing resources, readiness
ties to enhance interactions with its
and how enhancing key operations
customers across all touch points.
and processes contribute to its
The business became the second company in the region to adopt SAP’s
overall business objectives. “We were one of the early adop-
full suite back in 2006 and it was the
ters of a Treasury Management
first in the UAE to migrate on SAP ECC
System, the first in-house virtual
on HANA technology. The company
bank in the region, as well as new an
was also amongst the few to imple-
ERP system, SAP’s Business
ment ReFX (a Real Estate Module of
Objects and more. We have also
SAP), Open Text and VIM for docu-
invested in a new customer rela-
ment filing and invoice management.
tionship management (CRM)
tive management designing business strategies and adding value into business processes across the group. He is currently managing supply chain operations with planning of procurement, international freight forwarding, transportation, warehousing, inventory control and distribution for effective functioning of various business units of ESAG. Irfan is very passionate about achieving excellence in supply chain
and has featured as key note speaker at various procurement and supply chain forums and continuously works to enhance the reputation of procurement and supply chain functions.
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EASA SALEH AL GURG GROUP LLC
system and a point of sales (POS) system,” notes Al Gurg. “We brought SAP Ariba on board last year and have deployed its upstream module to streamline our supplier registration, sourcing and contracts to automate our Procureto-Pay processes,” adds Kapadia. “We are looking into data analytics in demand planning and digitise our in-bound and last mile logistics. We work to make sure that whatever technologies are available, we assess them and see how it will ben86
efit the business, grow our top line, save cost and improve efficiency. Working to capture all moments
“We have really streamlined a lot of our purchasing where we have received over 30% savings in many of our companies because of our consolidation. This all adds up into our supply chain savings” — Abdulla Al Gurg, Group Chief Executive Officer
through the use of technology, such as track and trace, ESAG has appointed a number of individuals with significant expertise in utilising data and analytics. Becoming more
“To ready ourselves for the
scientific in its approach, the busi-
future, we are investing in technol-
ness will gain a greater
ogy for the benefit of our diverse
understanding of the information
portfolio of businesses, including
received, drawing on lessons from
process automation, mobility, cus-
advanced markets, and combining
tomer service, e-commerce and
this with its understanding of cultural
securing our data infrastructure, as
nuances that contribute to the cus-
well as our procurement and logis-
tomer experience within the UAE.
tics processes,” Al Gurg adds.
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S U P P LY C H A I N
Change management Despite its ongoing transformation, it has been imperative for ESAG to undergo an essential change management process. By fully digitising its procure-to-pay processes, overhauling its supplier relationships and promoting collaboration across its sourcing, invoice submission and payments, Flaig explains that it has presented the biggest challenge. “We can invest millions into software and give a complete landscape of technology to our staff and to our businesses, whether it’s a fully automated treasury management or ERP system or even the adoption of SAP Ariba software. Nevertheless, if people don’t get comfortable with the technological advantages we have, we can’t bring our horsepower to the ground. “Years ago, it was clear that companies didn’t want to invest that much in training their employees. This is the biggest challenge in the entire region, but the more awareness we create in
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our team, the competitive advantage we will have in the future. “We have to invest in our people in order to enable them to change as fast as the markets are continually changing.” With this in mind, the business has placed significant investment in developing a robust team who have a deep understanding of the company and its long-term goals. Investing in the development of its own training centre, ESAG delivers over 780 hours of training to its 88
3,000 employees in a number of areas, from supply chain, governance, and legislation, to soft skills, such as managing conflict. The company also delivers a number of women’s empowerment initiatives. “We also cover SAP software utilisation and VAT training, which
and of course, our internal policies
was introduced this year. I also
and processes” observes Kapadia.
manage supply chain-related
“We have heavily invested into supply
training, where every quarter we
chain digitisation, so we have ongoing
gather our supply chain commu-
training which is always happening,
nity and teach them the principles
making sure procurement executives
of procurement, what’s happening
know how to create purchase exercita-
in the supply chain industry, how
tions, how to create sourcing requests
the logistic system works, our pro-
and how to collect it with suppliers. All
cess flows and how to negotiate,
of this happens at the training centre.”
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S U P P LY C H A I N
ESAG Showroom
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Long-standing reputation A key figure in the UAE, ESAG is keen to lead by example and places particular emphasis on giving back to local communities in a number of health, education and labour initiatives. Regularly donating clothes for families who are supported by the Red Crescent Authority in UAE, the business also supports local hospitals through blood donation. “For our employees, we also provided complimentary health tests to commemorate International Diabetes Day, offere breast cancer awareness programmes as well as wellness programmes, such as free yoga classes,� explains Flaig. m i d d l e e a s t . b u s i n e s s c h i e f. c o m
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“From a supply chain perspective, we
they offer different discounts for our
are also heavily involved. For example, we
employees. Any external activities that we
recently did a healthcare check-up for all
do, we drive partnerships with our suppli-
of our 800-plus labour employees, so the
ers. We give them a say in the process. It’s
supply chain team brought our water sup-
not an individual task, but one where the
plier on board, who came and distributed
supply chain comes together.”
free samples of water and juices for the labour staff,” adds Kapadia. “Similarly, we have collaborated with different partners in the market, where AUGUST 2018
With a long-standing reputation, ESAG remains proud to have a number of successful business relationships, many which have spanned over 50 years, such
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“We have to invest in our people in order to enable them to adapt to continually changing markets� — Werner Flaig, Group Chief Financial Officer
as British American Tobacco, Siemens and Dunlop, amongst others. Its values begin with its staff and are extended to its vendors and clients. Developing an organisational structure, combined with technology, the business is now able to successfully discuss, negotiate, and work with both international and local business partners effectively, leading to continual business growth. m i d d l e e a s t . b u s i n e s s c h i e f. c o m
EASA SALEH AL GURG GROUP LLC
Iftar event at a mosque built and managed by ESAG “This holistic approach of being ahead of the curve in the market puts us above the competition, which will make us survive as a business and will continue to enable us to drive a long-term, sustainable, strong performance,” says Flaig. “We remain unwavering in our commitment to conduct all of our business activities with integrity and excellence, and ensuring the trust of our shareholders, customers, employees and business partners,” concludes Kapadia. “We will continue to leverage our expertise to achieve sustainable growth in our identified areas of strength and remain agile and responsive to both the market and our customers’ 92
requirements, exploring opportunities for growth into new sectors through a combination BIO
Werner Flaig Chief Financial Officer, Easa Saleh Al Gurg Group Werner Flaig joined Easa Saleh Al Gurg Group LLC in 2011 as Group Chief Financial Officer with responsibility for all financial operations and long term financial strategies of 28 operating companies active in retail, real estate,
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industry, trading, banking and investment finance in the Lower Gulf Region and the UK. He came to the United Arab Emirates in 2009 as Chief Financial Officer of Siemens LLC, UAE, responsible for the financial operations of all Siemens entities in the Lower Gulf Region. Werner started his career in 1991 with Siemens AG, Corporate Finance, later Siemens Financial Services, and now possesses 25 years of executive level experience leading structured finance operations.
S U P P LY C H A I N
93 of deepening relations with existing
Werner has had P&L responsibilities as General Manager in operational businesses for large infrastructure projects in SouthEast Asia and China. His experience also includes leading concession companies as well as structuring and arranging international debt financing. Werner has a university degree in business administration from the University of Erlangen-Nuremberg, Germany, and studied also at Duke University, North Carolina, USA.
partners and further diversifying our current portfolio of businesses to tap into new customer segments,� concludes Kapadia. “Carrying forward the legacy of our founder, our preparedness and foresight has created processes and policies that guarantee the longevity of the business. A testament to that is being a successful family run Emirati company with three generations working side by side.�
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TECHNOLOGY
Embracing future growth through digitsation CHANGING REGULATIONS ARE RESHAPING THE TRADITIONAL INSURANCE MARKET. RENOWNED FOR ITS EXCEPTIONAL SERVICE DELIVERY AND CUSTOMER FOCUS, UNION INSURANCE HAS DIGITISED ITS SERVICES, FULLY CEMENTING ITS POSITION IN THE GCC WRITTEN BY
CATHERINE STURMAN PRODUCED BY
CRAIG DANIELS
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UNION INSURANCE
T
he United Arab Emirates (UAE) is moving away from its dependence on oil and is seeking to diversify its
economy within healthcare, transport and logistics, energy, tourism, and of course, its insurance services. Covering all industries, the GCC insurance market is projected to rise at a CAGR of 10.9%, from $26.2bn in 2016 to $44bn in 2021, bolstering the economic growth of the region and its citizens. New digital tools and complex regulations will seek to further drive the growth of SMEs and large corporations, enabling businesses to cater towards its evolving client demand. 96
Licensed by the UAE Insurance Authority and listed on the Abu Dhabi Securities Exchange, Union Insurance has sought to transform the customer experience. Appointed over two years ago, Anshul Srivastav, Chief Information Officer and Digital Officer, explains that the industry’s focus on the customer has been significantly isolated from the customer experience in recent years. “The insurance sector definitely takes a backseat in terms of customer experience,” he says. “My role is someone who is a technology transformation leader, where I have completely transformed the way Union Insurance has operated on the IT side with my team, looking at various aspects including the AUGUST 2018
TECHNOLOGY
“ CLOUD HAS ENABLED US TO PROVIDE ON-DEMAND TYPE SERVICES. WE’VE CONVERTED IT INFRASTRUCTURE AS A UTILITY, WHERE SIMILAR TO WATER OR ELECTRICITY, CUSTOMERS PAY FOR WHAT THEY CONSUME” — Anshul Srivastav, Chief Information Officer and Digital Officer
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m i d d l e e a s t . b u s i n e s s c h i e f. c o m
Enabling a smarter today Etisalat Digital is a business unit of Etisalat helping to drive digital transformation by enabling enterprises and governments to become smarter through the use of the latest technologies. It’s no longer the big beating the small, but the fast beating the slow and the smart taking the lead.
For more information, visit etisalatdigital.ae
TECHNOLOGY
Click to watch: Union Insurance provides more than just protection 99
current inventory and future inven-
FACT
tory of things that need to be done.
The GCC insurance market is projected to rise at a CAGR of 10.9%, from $26.2bn in 2016 to $44bn in 2021
“The first role was to change the way things were working in the region and to look at how the market is. Working closely with businesses, in terms of how things are and how things are going to be
end-to-end experience of the cus-
done moving forward.”
tomer, from buying a particular product and ensuring products
ENHANCING THE
are serviced, the company has
CUSTOMER EXPERIENCE
revamped its online presence and
By convincing Union Insurance’s
branding, leading to the eradica-
management team to explore the
tion of its paper-led processes. m i d d l e e a s t . b u s i n e s s c h i e f. c o m
UNION INSURANCE
“Through our mobile app,
“We have also automated a lot of processes
we started enabling customers to
through implementing robotic process automa-
help themselves. We then decided
tion (RPA). The number of steps taken to complete
to go paperless,” explains Srivastav.
a process in terms of selling and soliciting should
“With all banking services and financial, products are
be reduced. Additionally, we have berisat blockchain, particularly on the documents side.”
paper. Their promises are on
Union Insurance is becoming increasingly
paper, whether it’s currency,
proactive as a result of its digital transformation
a policy or ATM receipts. We now
and has sought to garner a deeper understand-
scan information and our policies
ing of the needs of its customers, placing them
are saved electronically.
firmly at the centre.
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TECHNOLOGY
“Most customers are not very clear on what
best services and products, miti-
they want and what they’re looking for. When
gate potential risks and protect
reaching out to the customer, whether it’s for a
their coverage.
product or a service, we have to create a journey for them. Customer engagement is very impor-
DIGITALLY ENABLED
tant to alter the entire lifecycle journey,”
Engaging with customers on a
observes Srivastav.
variety of digital platforms, such as
By engaging with customers, Union Insur-
mobile and online, customers are
ance has also sought to gain further
now able to purchase life, health,
understanding of customer age, demographic,
and motor insurance at their own
nationality and preferences, in order to offer the
convenience. Bolstered by the
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UNION INSURANCE
introduction of artificial intelligence technologies, such as image and voice recognition, Union Insurance has gained an edge over competitors by bringing new solutions to the market at a rapid pace. However, such changes would not have been possible without the
“ ON-DEMAND INSURANCE IS GOING TO BE GAME CHANGER, ESPECIALLY IN LIFE, HEALTH AND P&C INSURANCE” — Anshul Srivastav, Chief Information Officer and Digital Officer
adoption of cloud technology and the business’s focus on data virtualisation. Srivastav explains that this has been a major game changer. “Cloud has enabled us to provide 102
on-demand type services. We now don’t invest in IT prefecture but pay per use, similar to on-demand. It’s like the ‘Uberisation’ of insurance. We’ve converted IT infrastructure as a utility, where similar to water or electricity, customers pay for what they consume. “It has helped us bring products
strengthen Union Insurance’s security services,
to market quicker. When we come
the company has also partnered with Amazon
up with a new product or service,
Web Services and Microsoft, who jointly man-
we don’t have to wait for eight to 12
age its cybersecurity operations 24/7.
weeks to get our IT prefecture
Developing tailored products and services,
commissioning set up. It has now
whilst looking at the commercial impact
been reduced to a couple of hours.”
such decisions will have on the business,
Whilst the adoption of cloud technologies has sought to AUGUST 2018
Union Insurances’ investment in data analytics cannot be underestimated.
TECHNOLOGY
103
“People don’t buy insurance, it is sold. People
insurance, travel insurance and
preferably go for mandatory insurances. In the
shop insurance, everything under
UAE, motor and health insurance is mandatory,”
the sun can be insured.”
explains Srivastav. “When looking at other parts of insurance, we
LONG-TERM EVOLUTION
need to have the data to understand what both
As the insurance industry
corporate and individual customers are looking
continues to mature, competition
at and what products are helpful to them to pro-
amongst providers remains fierce.
tect themselves. From fire insurance, home
Technology giants such as Google m i d d l e e a s t . b u s i n e s s c h i e f. c o m
UNION INSURANCE
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TECHNOLOGY
FACT
Introducing artificial intelligence technologies, such as image and voice recognition, Union Insurance has gained an edge over competitors
and Amazon have also sought to expand their diverse portfolios and tap into countries with denser populations and long-term potential. As a result of new laws coming into force in the GCC, all individuals will be required to purchase compulsory medical insurance. Consequently, the GCC insurance industry is set to rise in the next five years – medical insurance presently accounts for approximately 40% of the GCC insurance market. The adoption of life and non-life insurance products also remains on the rise due to the growth of lifestyle diseases and a changing demographic. “Technology players are entering insurance. They will not come as typical, traditional insurance companies, but will offer real-time insurance where they will use the power of data,” notes Srivastav. “Google can see where you are and where you are calling from. In real-time, they can offer certain insurances to prevent the risk of a call drop, for example. On-demand insurance is going to be a game changer, especially in life, health and m i d d l e e a s t . b u s i n e s s c h i e f. c o m
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UNION INSURANCE
“ TECHNOLOGY PLAYERS ARE ENTERING INSURANCE, ESPECIALLY ON THE HEALTH SIDE. THEY WILL NOT COME AS TYPICAL, TRADITIONAL INSURANCE COMPANIES, BUT WILL OFFER REAL-TIME INSURANCE WHERE THEY WILL USE THE POWER OF DATA” 106
— Anshul Srivastav, Chief Information Officer and Digital Officer
property and casualty (P&C) insurance. “Also, paying per mile insurance,
“China has also become a significant area of long-term potential. Zhong An,
where you pay insurance on the amount
who started their insurance journey
that you drive, is already in Europe and
in 2013 have recently had an IPO and
gradually coming into the other parts of
are a pure digital player. They have
the world. A lot of driving behaviours are
630 products in China and have sold
captured and bases the rating of insur-
over 8bn policies. If I look at the popu-
ance offered.”
lation of China, which is one and a half
Globally, countries with ageing
billion, every person is purchasing four
populations and an evolving demo-
products, through high-level calcula-
graphic, such as China, will be on the
tion,” Srivastav says.
receiving end of an insurance boom. AUGUST 2018
“They are clearly doing what others
TECHNOLOGY
107
are not doing and are growing rapidly.
evolving market, the company will
Their use of data, wherein they engage
remain a key player within the Dubai
with the customer, they understand
insurance market.
their real time needs, and they offer the
“With our retail-focused products,
protection or cover of what a customer
we’ve done some substantial work in
is looking for, is essential.”
terms of using technology to reach out
Union Insurance has taken a grand
to existing and potential customers
step to reach its direct customers and
through our digital channels,” Srivastav
its partners to ensure that it delivers the
concludes.
best products and services for custom-
“We’re seeing a good traction and
ers in real-time. Predicting the
conversion coming in and it’s adding up
behaviours of its customers, with an
to our revenues in great detail.” m i d d l e e a s t . b u s i n e s s c h i e f. c o m
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THE MIDDLE EAST’S DATA MARKETING POWERHOUSE WRIT TEN BY
DA LE BENTON PRODUCED BY
CR AIG DANIEL S
AUGUST 2018
TECHNOLOGY
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GROUP M
Through [m]PLATFORM, GroupM looks to redefine the digital marketplace of the Middle East
A
As the world’s largest media investment group, responsible for one in three advertisements
This is where Siddons comes to the fore. Working alongside Daniel Vaczi,
globally, a powerful system is required to be
[m]PLATFORM Head of Data & Technology,
able to store and ultimately leverage the
the two are tasked with delivering cutting
mountains of data available. For GroupM,
edge data and technology solutions to
this solution is [m]PLATFORM.
GroupM agencies and their clients.
“[m]PLATFORM is GroupM’s solution for 110
throughout the MENA region.
“The UK, for example, is a challenging
shaping data and technology around each
market to operate in, given the number
advertiser’s needs,” said Marcus Siddons,
of players live and scaled,” says Siddons.
Managing Director, GroupM MENA. “We
“I feel both Dan and I are privileged in the
get unique data from across the media
sense that we can apply our experience
landscape and various consumer touch-
of such developed markets to the MENA
points to help clients best use technology
region, and through our agency back-
and deliver the right message to the right
grounds remain close to what business
consumer at the right time.”
challenges clients need solving.”
“It allows us join up all important insights
“That’s very important,” adds Vaczi. “It’s
to execution, but what it really boils down
often easy when working in a technology
to is understanding individual users and
role or company to be disconnected from
having a complete view of a single user. For
the real business challenges that clients
our region, that’s both unique and challeng-
and their agencies are under. We under-
ing in equal parts.”
stand both agencies and clients as we were
GroupM has operations all over the world,
in the same shoes in our previous roles.
including Germany, Korea, Japan and the
Using this experience, we can tailor
United States, but the company is currently
solutions that directly addresses these
undergoing an aggressive expansion plan
business challenges.’’
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S U P P LY C H A I N
“ WE ARE LOOKING TO INNOVATE EVERY WEEK SO THAT WE ARE OPERATING IN A VERY DIFFERENT PLACE THAN WE WERE LAST WEEK AND WILL BE IN A VERY DIFFERENT PLACE NEXT WEEK”
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Marcus Siddons, Managing Director, GroupM Digital MENA
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
GROUP M
Across its MENA footprint, GroupM has a
Technology of course is an ever-chang-
presence in over 20 countries from
ing beast and a company like GroupM
Morocco right through to Oman. As an
has to not only recognise this evolving
organisation that defines itself through the
landscape but try and remain ahead
way it works closely with its client base,
of the game in order to continue to
operating across the region presents
deliver for its clients.
unique challenges from location to location,
This in itself creates its own unique
and as a company with technology at its
challenge; does a company look to innovate
heart this challenge is only exacerbated.
and implement technology just to stay in the
“At GroupM we are trying to tackle a huge challenge with [m]PLATFORM, not just siloed understanding of our customers but
game? Or does it not take the risk and fall behind the rest of the market? Siddons agrees as much, believing that
ensuring we can execute against this
the conversation surrounding technology
seamlessly,” says Vaczi.
creates a lot of “noise” and that the key
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S U P P LY C H A I N
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GROUP M
element is to cut through this noise and focus on what is actually going to deliver and provide true value to clients. This, he confesses, is not an easy thing to do, particularly as clients also continue to evolve. “In essence, working with a client is about helping them drive growth and profitability,” says Siddons. “But, that’s changed. As the world moves into the digital sphere, clients now have a far greater understanding and control of what they want and how 114
they want it.’’ “It’s not just the client that has a greater understanding of so many different domains, their consumers, our partners and our people do too which wasn’t the case as much as
“ IT’S MORE THAN JUST AUDIENCE AND DATA ANALYTICS. IT’S ABOUT IDENTITY AND ACTUALLY TURNING THE DATA INTO VALUE AND BEING ABLE TO PROVIDE SUGGESTIONS AND IMPROVEMENTS TO CLIENTS” Daniel Vaczi, [m]PLATFORM MENA Head of Data & Technology
AUGUST 2018
S U P P LY C H A I N
five years ago. So, for us, the demands have changed because not only do clients rely on us provide the right advice to deliver on our promise to drive success for those clients, partners and people.” This is where [m]PLATFORM comes in. [m] PLATFORM represents a key differentiator for GroupM, allowing it to gain insights into audiences like no other agency or provider could. As Siddons notes, the industry has changed and so too has the market, and this forced GroupM to re-examine its process and service solution. “The industry has grown,” he says. “As that market has changed, we looked at our operating model. Do we buy other businesses? Do we build our own technology? Or do we partner with other businesses? How do we stand tall above other players?’’ “It became clear to us that understanding our audiences and being able to use and apply scale to that was going to be a big differentiator.” What [m]PLATFORM does is provide clients with the best in class audience insight, data analysis and visualization tools on a global scale. But as Vaczi points out, “It’s more than just audience and data analytics. It’s about identity and actually turning the data into value and being able to provide actionable insights.’’ “We use sophisticated artificial intelligence to turn data into insight and then into actions, which is unique to this region. But let’s not forget that there is still a huge people element to this.” m i d d l e e a s t . b u s i n e s s c h i e f. c o m
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GROUP M
In any technology conversation, it is often easy to forget the key role that employees, suppliers and people will play. That expertise element cannot be underestimated. Vaczi firmly subscribes to that notion. “[m]PLATFORM requires a unique set of skills in order to deliver it,” he says. “We are really proud of the diversity of our teams who come from media planning, buying, programming, data science, analytics and trading backgrounds.’’ “That we have all of these specialists under one roof cannot be understated. Our people are what makes [m]PLATFORM truly unique.” Attracting this talent is often a challenge, but it is 116
a challenge that Siddons feels GroupM has been incredibly successful at doing so. Vaczi confirms, “it is incredibly important that we have the best people. We do this by making it a company that people genuinely want to work for.’’ “A key part of that for me, is that cross pollination of skills, talents and ideas. People really benefit from being a part of GroupM and it shows.” Siddons points to GroupM as having one of the lowest turnovers of staff since he’s been there, not just in the industry but also across the region. GroupM also has one eye on the future workforce and works closely with local universities and schools to foster a pathway for the next generation of students who can drive the company to new levels of innovation. When identifying the challenge that lies ahead, AUGUST 2018
“ HAVING A SHARED VISION WITH THESE PARTNERS IS CRUCIAL. WHEN WE PARTNER WITH THESE COMPANIES, WE AIM FOR MULTIYEAR LONG-TERM RELATIONSHIPS. THIS REALLY ENSURES THAT WE ARE AIMING FOR THE SAME GOAL AND THIS APPLIES ACROSS OUR ENTIRE GLOBAL PRESENCE” Daniel Vaczi, [m]PLATFORM MENA Head of Data & Technology
S U P P LY C H A I N
GroupM looked at partner relationships
FORM, but both admit that for them the
and how those relationships can push the
journey is very much still at the beginning.
capabilities of the company. In any
As the company embraces the future of
technology transformation or journey, no
digital, it will do so by building on the
company can do it alone.
foundations of [m]PLATFORM. Data will
“As much as we want to use our own
only continue to define and redefine the
people, in some cases we do need to look to
industry and so GroupM will continuously
our suppliers and partners to help push our
place data at the very core of its operations
capabilities and our skillsets in order to achieve
in order to gain better insights which will
our project goals or roadmap,” says Vaczi.
drive greater results for its clients.
“Having a shared vision with these partners is crucial. When we partner with these companies, we aim for multiyear
“At GroupM we continue to re-invest into our people and technology,” he says. “We are looking to innovate every week
long-term relationships. This really ensures
so that we are operating in a very different
that we are aiming for the same goal and this
place than we were last week and will be in a
applies across our entire global presence.’’
very different place next week.”
Both Siddons and Vaczi have been on a considerable journey over the last few years through the development of [m]PLATm i d d l e e a s t . b u s i n e s s c h i e f. c o m
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Fletcher Building RTG Delivering robust, sustainable and cost-effective roofing across MEA WRIT TEN BY
TOM WADLOW PRODUCED BY
CR AIG DANIEL S
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CONSTRUCTION
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m i d d l e e a s t . b u s i n e s s c h i e f. c o m
FLETCHER BUILDING ROOF TILE GROUP
Through its three well-established brands, Decra, Gerard and Fortiza, the subsidiary of New Zealand construction giant Fletcher Building is looking to grow across the Middle East and Africa in an improving investment climate The Middle East and Africa (MEA) region is awash with opportunities for forward-thinking construction companies and their suppliers. Following the economic slowdown of a decade ago, operators in the region’s construction industry and supply chain are observing a stabilisation of the market thanks to an improving financial picture, driven in part by recovering commodity prices. Fletcher Building Roof Tile Group (RTG) is one such observer. A regional division of the New Zealand building giant, the unit delivers roofing solutions through three brands – Decra, Gerard and Fortiza. In charge of growing brand awareness and facilitating innovation of Fletcher Building RTG’s product portfolio further is Lamjed Kefi, Managing Director Middle East and Africa. Having worked out of the Middle East since 2007 for two construction multinationals, Kefi
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“We need to realise that the Africa-Middle East region is a large one, and that by 2030 around 25% of the world’s population will live in this part of the world.There will be a big housing deficit and that is a huge opportunity.” — Lamjed Kefi, Managing Director Middle East and Africa
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FLETCHER BUILDING ROOF TILE GROUP
says that the investment climate is improving, and that Fletcher Building RTG is well-placed to take advantage and supply this demand. “We see stability coming and that economic improvement can benefit our business,” he explains. “We need to realise that the Africa-Middle East region is a large one, and that by 2030 around 25% of the world’s population will live in this part of the world. There will be a big housing
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deficit and that is a huge opportunity.” Kefi also points to the wider Fletcher Group’s formidable history and reputation in the sector, something which will stand it in good stead when looking to expand into new markets. The Kiwi corporation can be traced back to the early 1900s, and over the course of the last century has developed into a multibillion-dollar multinational.
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“ We have already built up a very high brand equity in the region.We are the largest branded metal rooftile supplier, and that is in part due to what we have invested in marketing, not only online but also on billboards, at trade shows and on TV and radio spots” — Lamjed Kefi, Managing Director Middle East and Africa
A standout portfolio Fletcher Building Roof Tile Group manufacturers solutions under its three brands from plants in Asia, Europe, the US and New Zealand, and pioneered in the first metal roofing tile in 1957, a formula which defines the company’s products today. It is this characteristic that enables it to provide a massive 50-year warranty to customers, with tiles able to withstand the harshest of environments, from extreme heat to Arctic cold. A durable base coat and layer bonding also ensure these tiles can withstand being chipped or strained, making sure the important 100% coverage remains. “When I found out about the warranty before I joined it said to me ‘wow this is a very special product’,” Kefi says. “It also said that this was a special company that commits to home owners and customers.” Another key characteristic of Fletcher Building RTG’s m i d d l e e a s t . b u s i n e s s c h i e f. c o m
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portfolio is that it covers a wide range of price points which can cater to various budgets and specifications. This ability to be competitive is underpinned by an efficient manufacturing and transportation operation. Kefi explains: “The lightweight products we have are up to seven or eight times lighter than our competitors, which allows us to transport goods very economically from the likes of New Zealand. Not only does this keep our cost down, but lighter
tiles also save on the structural elements of the house or building.” Further, energy efficiency qualities also help to make Decra, Gerard and Fortiza roofing solutions economically sound. “They are 100% recyclable,” Kefi states. “The material is thin and light so that means it cools down quicker during the evenings than clay or stone tiles, which radiate heat through the night and results in higher energy consumption.” Based in Dubai, Kefi cites signifim i d d l e e a s t . b u s i n e s s c h i e f. c o m
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cant construction projects in the emirate that Fletcher Building RTG has supplied through the decades, the most notable being Jebel Ali Village and several landmark hotels such as Jumeriah Beach and Murooj Rotana. It also provided roofing solutions for the Dubai Mall. Innovation In order to keep securing significant building projects, innovating a fresh offering and differentiating from competitors will be crucial to Kefi and his team. From diversifying colour palettes to developing an authentic slate-style tile, Fletcher Building RTG is constantly seeking to offer something new to existing and prospective customers. “We are able to have a profile which has the same look and feel,” Kefi says, “and that gives our customer the option of a
“The lightweight products we have are up to seven or eight times lighter than our competitors, which allows us to transport goods very economically from the likes of New Zealand” — Lamjed Kefi, Managing Director Middle East and Africa AUGUST 2018
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lightweight product but with the beauty and look of slate. That’s one of the inventions we have worked. Of course, we keep on inventing and making the system more user friendly and easy to install, using tooling which is more friendly and safer for installers.” Beyond reformulating products, Kefi also explains how the business has introduced more innovative ways of marketing and reaching out to its customers in the first place. “We are very active on social media
and try to reach out to the end users to make them aware of our product, our advantages and what it is giving to them,” he adds. “We want them to use our products and let them experience the durability, the warrantee, the cost saving they’ll have in the long term and in the short term because of the installation cost. “We have already built up a very high brand equity in the region. We are the largest branded metal rooftile supplier, and that is in part due to what we have invested in marketing, m i d d l e e a s t . b u s i n e s s c h i e f. c o m
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not only online but also on billboards, at trade shows and on TV and radio spots.” Receiving feedback from these customers is equally as important to Kefi, who highlights how communication with distributors is vital in ensuring that comments make their way back to decision makers at Fletcher Building RTG. “We have set up training programmes to train professional and approved installers for our products and these guys are constantly on the road installing our roofs,” he AUGUST 2018
continues. “They come up with very valuable feedback on what they experience, how they experience it, especially when we launch new products.” A partner-powered future Looking ahead, as well as growing its presence across the MEA region, Kefi and his division may explore the possibility of moving production closer to its key markets. “Bringing some production locally should have a significant cost advantage, but it is not likely at this stage,” he explains. “We always revaluate
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these options and it might be possible in the future that we do this.” Whether relocating production closer to customers or simply expanding the Decra, Gerard and Fortiza brands in MEA markets, utilising local partners is and will continue to be paramount. “Local distributors and agents have that knowledge of the market, rules and regulations that we need in order to be successful,” Kefi says. “Further-
more, we are cooperating with the New Zealand Trade Organization who is helping us a higher level. We hear more about trends and what’s going on, on a political level, about the currency available in the region as well. “This knowledge will help us deliver our key priorities of reinforcing our presence and differentiating from the competition.”
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