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AMERICA EDITION SEP TEMBER 2018
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FOREWORD
elcome to the September issue of our new North America edition of Business Chief. Our cover feature this month is an interview with Chris Hall, Vice President of Global Information Technology at KEMET Electronics Corporation. In an extensive discussion, Hall reveals how the company’s aggressive digital transformation has led the business to address ongoing challenges within its digital infrastructure, whilst implementing essential processes in order to remain a market leader. Increased demands for tools to promote secure networking and collaboration has also filtered into the corporate sphere. From the development of customer focused apps to promote engagement, to the launch of intricate business applications, we caught up with industry veteran and Chief Executive Officer of Wire Morten Brogger, who details how the company supports the delivery of secure, high quality messaging solutions as it continues to expand across the United States. Our City Focus this month is San Francisco and we also list the top 10 biggest chain hotels in North America, according to 2017 revenue figures. Finally, our exclusive digital reports feature interviews with, Epcor Water, Highlands Residential Mortgage and more. Enjoy the issue!
W
Catherine Sturman Editor catherine.sturman@bizclikmedia.com
w w w. b u s i n e s s c h i e f. c o m
03
CONTENTS
08 KEMET Electronics
Implementing
digital infrastructure
34
20
WIRE BRINGS SECURE
COLLABORATION TO
NORTH AMERICA
LEWIS DRIVING CHANGE THROUGH TECH SHE CAN
Top 10
Biggest hotel chains
60 46 City Focus
SAN FRANCISCO
CONTENTS
68 Highlands Residential Mortgage Ltd
78 Chayora
106 Dundee Precious Metals
96 KAR Auction Services
120 Epcor Water
Implementing a
digital infrastructure
Through an aggressive digital transformation, KEMET Electronics tackles tomorrow’s challenges today WRIT TEN BY
DA LE BENTON PRODUCED BY
ANDY TURNER
KEMET ELECTRONICS
T
he role of IT in business is changing. No longer simply a support function, over the
last decade IT has taken on a much more integral role in defining the strategic direction of most business all around the world. “In today’s world, IT is the crux of every business. It is the very foundation that everything is built on,” says Chris Hall, VP Global Information Technology at KEMET Electronics Corporation. “If you’re not taking it seriously, you’re going to be left behind. Businesses 10
make decisions on the fly and so IT must be able to support these decisions with real-time data. IT has to be agile and be
responsiveness to its customers.
able to meet the needs of the business.”
“It all comes back to IT,” says
The notion of IT being a foundational
Hall. “It’s about making our data
component that the business is built
available. Both from a customer
upon is key in the KEMET Electronics IT
perspective (our distributors and
digital transformation journey. With
our partners), as well as, available
customers ranging from producers of
to our internal business groups.
small wearables, laptops, and mobile
However they want to get the
tablets to solar panels, 5G antennas, and
information, it’s our job to ensure
electric vehicles, KEMET is a leading
its available to them.
global manufacturer and supplier of
“Plus, there’s also a responsibil-
electronic components. This is a
ity to keep the lights on. IT still has
continuously growing market, with
to keep the network running, the
demand increasing faster than ever
PCs patched and generally the
before and KEMET prides itself on its
proper infrastructure and security
SEPTEMBER 2018
TECHNOLOGY
BIO
in place. I’m here to ensure we have a very strong foundation to carry KEMET into the future, with data management and collaboration tools to make us more agile and ultimately more successful.” Hall tries to sum up the digitization of KEMET in one,
Chris Hall Fhas spent 18 years in the after-market services and electronics manufacturing industries. Rising through the ranks at JABIL, Chris developed a strong understanding of supply chain management, Lean manufacturing, and cross-functional leadership principles. Chris was part of the iQor acquisition of JABIL’s After-Market Services division and was promoted to Vice President of IT Solutions for the newly combined IT department. He spent threeyears developing new technology to support iQor’s joint ventures and general corporate strategy to become a Digital Enterprise. Most recently, Chris joined KEMET Electronics Corporation as VP of Global IT, where he oversees all aspects of IT strategy including infrastructure, systems architecture, and development.
succinct sentence; to create an IT department that enables KEMET’s data to be accessible to any employee at any time, so long as they have security access granting them privileges to that data. The challenge then becomes
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11
KEMET ELECTRONICS
one of compiling all data and hosting it in the right place and in a fast and secure way. It’s here that Hall is implementing 5 core pillars to overcome this challenge. These core pillars define the digitization process, described as KEMET 2025. “First, we have to organize,” says Hall. “We have to have a good strong change management process; yet maintain agility,meaning that a simple change is a simple change.” “In order to be agile, you have to very organised. Trying to be agile is difficult because you have a lot of different types of projects, different mandates, and a lot of different requirements to meet all at the same time. Creating an agile environment takes a lot of organisa12
tion, but it’s paramount to support a digital enterprise” A consistent message throughout the digital transformation has been one surrounding data management and access to data, and Hall recognizes that in order to achieve this vision of accessible data, there must be infrastructure supporting it. “When talking about the infrastructure, security goes hand-in-hand with it in today’s world,” he says. “You need a backbone that can carry your data as fast as possible and as securely as possible.” “We live in a very “right now” world, where users have no patience for slowness anymore.” Hall believes that if a company doesn’t have an efficient and robust infrastructure, it does not matter how “slick and cool” the data management and collaboration tools are, if they are slow and poorly managed, they will fail to be adopted by the business
SEPTEMBER 2018
TECHNOLOGY
13
“ WE LIVE IN A VERY “RIGHT NOW” WORLD, WHERE USERS HAVE NO PATIENCE FOR SLOWNESS ANYMORE” — Chris Hall, VP Global Information Technology at KEMET Electronics Corporation
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KEMET ELECTRONICS
14
“We have a culture of striving to be more innovative and not resting on our heels. That’s key to delivering success on a wider scale on larger projects” — Chris Hall, VP Global Information Technology at KEMET Electronics Corporation
SEPTEMBER 2018
This is how digital transformations fail; when you don’t pay attention to the foundational components that are required to support it. With the first three pillars aligned, KEMET can turn its attentions to data management and collaboration; “the fun branches” as Hall describes them. Without the foundational pillars in place, any attempts at implementing a company-wide culture shift is futile.
TECHNOLOGY
$1.2B
Approximate revenue
knowledge that we need to be able to extract, share and integrate with all our systems data,” says Hall. “These collaboration tools are very important in making that
1919
Year founded
a reality.” Data management in itself is a key topic among many modern businesses, not just IT at KEMET. For some, it is a difficult nut to
16,000 Approximate number of employees
crack as businesses all want better access and better learnings from data, but there is no silver bullet. Hall understands this, noting that the true key to success in data management is approaching it one project at a time with an eye towards the bigger, long-term
KEMET is implementing Microsoft Share-
goal. “We should enter data once
Point Online as the tool set that enables real
and should be available wherever
time communication between its employees.
we need it.”
This information exchange enables far greater
“To achieve this, it’s not a one
collaboration and “starts moving people away
size fits all technology map,” he
from email.”
says. “You cannot build the perfect
KEMET also utilizes Yammer and other
big data mousetrap, instead you
tools from the Microsoft O365 suite to access
integrate new tools progressively
and share information in real time, enabling
into your data management
an increasingly agile culture.
architecture and achieve iterative
“When you start discussing data manage-
success through greater agility.
ment and making all of our data available, our
Overtime, the full data ecosystem
engineers at all the sites have a wealth of
will begin to take shape.”
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15
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TECHNOLOGY
An iterative approach is crucial in
cloud model necessary for future
transforming an organization and
digitization projects, KEMET is also
establishing an IT function that is
partnering with Nutanix to better
responsive and proactive. Hall points to
manage and provide the onsite
this approach and its iterative success,
compute for future projects like IoT.
as a means of building belief in the
These are but three examples of how
process and supporting a cultural shift
KEMET is working collaboratively with
throughout the company.
vendors to serve as coaches providing
“To me, doing the work is actually the easy part. We have a culture of striving to be more innovative and not resting on our
core intelligence and best practices to the company. We are partnering with people who
heels. That’s key to delivering success on
are good at what we are not, and by
a wider scale on larger projects.”
doing so, bringing information and
Another key to the successful delivery of a digitization process and technology transformation is external partners and technology vendors. To this end, Hall feels that selecting
knowledge into KEMET that will serve us well for years to come.” No transformation defined by technology can ever truly end, with technology and innovation continuously
the right partner(s) is actually more a case
evolving and redefining industry and
of cultural fit as much as it is a simple
businesses. KEMET is working towards
technological capabilities analysis.
its 2025 vision and Hall has his eyes
KEMET relies on a number of
firmly set on achieving those goals first
business partners. Sirius, a leading
and foremost as a way for preparing
integrator of technology-based
KEMET for the future and beyond.
business solutions, Halls notes, has
He feels that delivering success with
been instrumental in assisting with the
2025 will define the success of the future.
“reinvention of our infrastructure. “IBM is
“To define success, we have to look
a critical partner in assisting with our
at how we deliver against those core
implementation of SharePoint and
pillars,” he says.
other development projects. To achieve the necessary hybrid-
“By establishing the best infrastructure securely creating a more collaborative
w w w. b u s i n e s s c h i e f. c o m
17
KEMET ELECTRONICS
Click to watch: ‘The KEMET STORY’
SEPTEMBER 2018
19 company through communication and having all the useful information and data at the fingertips of our business users, we will be successful.” When broken down, KEMET’s journey can be defined by one real business need and that is to be more agile. All of the pillars of transformation and the technology implementation is designed to make KEMET more efficient, more effective, and more agile to a rapidly changing market. “The challenges of 2025 will be very different
KEMET Leadership Team Group Photo Top row, from left to right: Robin R. Blackwell, J.D., Fernando Spada, Jamie Assaf, Dr. Phil Lessner, Stefano Vetralla, Tim Herring, Andreas Meier, Chuck Meeks, Masayuki (Max) Nakamura, Claudio Lollini, Fumihiro (Hiro) Katakura, Michael Raynor, Brian Burch, Bob Willoughby, Andreas Hammer, Dr. Johnny Boan, Yang Zhang, . Bottom row, from left to right: Shigenori (Sean) Oyama, William Lowe, Monica Highfill, Per-Olof Loof, Susan Barkal, Dr. Daniel F. Persico, Yang Zhang.
from the challenges of 2018,” says Hall. “But if we get it right, if we are better organised and more agile, then we will be able to tackle those future challenges more effectively and successfully.”
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LEADERSHIP SHOWCASE
20
SEPTEMBER 2018
WIRE BRINGS SECURE
COLLABORATION TO
NORTH AMERICA With the European business embarking on a significant expansion across the United States, we spoke with CEO Morten Brøgger about how Wire supports secure messaging within the corporate sphere WRITTEN BY
CATHERINE S TURM AN
w w w. b u s i n e s s c h i e f. c o m
21
LEADERSHIP SHOWCASE
F
or any organization, the need for secure messaging technologies has become increasingly vital.
With daily news coverage of data breaches,
malware attacks and poor security practices across North America and globally, awareness of the risks associated with handing over confidential data has been heightened. It is therefore imperative for businesses to take a proactive approach in enabling employees to utilize vetted, secure, modern chat-based tools. While email continues to be the main communication channel for many industries, it has also become 22
one of the least secure and effective channels. “If confidential information gets in the wrong hands, it almost always has a significant financial impact,” Morten Brøgger, CEO of work collaboration platform, Wire, tells us from his San Francisco office. Establishing Wire, Brøgger has sought to build exceptional communication tools where employees can chat securely, share documents or make voice, video and conference calls, as well as undertake screen sharing in real time. “Chat-based communication tools are rapidly taking over from email because communications need to be fast and accurate. It is now more SEPTEMBER 2018
23
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LEADERSHIP SHOWCASE
24
often than not done through tools like WhatsApp, Facebook Messenger, Instagram and Snapchat,” he explains. “Most consumer tools are free and
increase efficiency and productivity.” The breach of confidential customer information not only loses consumer trust, but also opens the doors for
financed through ad-based models.
potential penalties from data protec-
This inevitably means sacrificing
tion agencies. With this in mind, Wire
privacy, especially if the same device is
has developed a world-class end-to-
used for work, which then puts work
end-encryption (E2EE) tool, making
security in jeopardy.
work faster, more efficient and more
“By switching work conversations to chat-based tools, it would help reduce time spent on internal email by 50%.
secure than working with other outdated digital tools. “Many customers have commented
Being able to use the same secure tools
how useful they find Wire’s ‘guest room’
for external communication would further
feature. This allows them to chat and
SEPTEMBER 2018
“Launching end-to-end encrypted chat, conferencing, video calls and file sharing on desktop and mobile with great user experience in just nine months is something no-one else has matched” — Morten Brøgger, CEO, Wire
25
talk to external parties who don’t have
month after Wire in April 2016) and two
Wire installed – it just works in a browser
years later still offers only 1:1 voice calls.
window,” says Brøgger. “The benefit
Wire has had encrypted conference
they mention is being able to use the
calls since its launch.”
same software and security for not just internal but also external communication. “Launching end-to-end encrypted
OPEN SOURCE ADVANTAGES While E2EE is more commonly
chat, conferencing, video calls and file
witnessed within consumer communi-
sharing on desktop and mobile with
cations for enterprises, secure
great user experience in just nine
communication has become an
months is something no-one else has
essential focal point. Brøgger explains
matched,” he adds. “For comparison,
that corporate users had not previously
WhatsApp’s team worked on the same
had access to such an easy-to-use
functionality for two years (launching a
collaboration tool as Wire’s software. w w w. b u s i n e s s c h i e f. c o m
LEADERSHIP SHOWCASE
Established in Germany, the companyâ&#x20AC;&#x2122;s largest markets remain within the US, Canada and the European Union, where over 100,000 people in more than 200 enterprises regularly access its services. The company is bolstered by an impeccable team, with many members have worked at the likes of Skype, IBM and Cisco. Fully adopting a 100% opensource strategy, the business remains ambitious to build communications tools of the
26
future, in terms of functional-
SEPTEMBER 2018
ity, security, privacy, as well as
“Open source forces us to write quality
an exceptional user interface, to
code, motivates our staff, makes it easier to
ensure complete transparency
engage external developers and partners
across its business practices.
and simplifies building integrations.”
“Wire’s focus on open source
“Everything on Wire, by default, is protected
means that anyone can audit our
with E2EE – only the sender and receiver
code for quality and verify our
can see the contents of the messages. Wire
security claims. Many have
does not have any decryption keys, placing
commented on that the fact that
responsibility firmly on our customers. There
Wire believes in open source,
are also no available backdoors created
takes transparency to heart
within the software,” he continues.
and leads the way to push the
“This is a big difference from competitors
collaboration software industry
like Microsoft Teams or Slack where all
to a more secure and privacy-
messages and files are available to anyone
friendly future is important to
with access to the server – including the
them,” says Brøgger.
service provider or malicious actors.”
“Most consumer tools are free and financed through ad-based models. This inevitably means sacrificing privacy, especially if the same device is used for work” — Morten Brøgger, CEO, Wire
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27
LEADERSHIP SHOWCASE
COMPLEX REGULATIONS
organizations servicing the
Throughout its focus on driving
European Union (EU) to
exceptional E2EE services,
publish any data breaches,
Wire has, of course, had to
providing ultimately transpar-
adapt its offering towards
ency. Additionally, the rulings
evolving worldwide regulatory
will also ensure that all
demands, such as the
companies serving European
European General Data
citizens remain open about
Protection Regulation (GDPR)
third party tools which receive
rulings, which requires
access to customer data.
28
SEPTEMBER 2018
FACTS
By implementing
• Wire’s ‘guest room’ feature allows users to chat and talk to external parties who don’t have Wire • Established in Germany, Wire’s largest markets remain within the US, Canada and the EU
a privacy by design approach, Wire has sought to go above and beyond traditional approaches to securing customer data and has gained the ability to integrate its services with other software, providing a seamless experience.
“GDPR does not just affect EU businesses, but any company in the world serving customers in the EU. A lot of these companies will not be ready in terms of protecting their customer data with encryption,” observes Brøgger. This has already been documented, with the media claiming that many US websites in particular have barred European users from accessing their services. While some US businesses will already have most of the appropriate security measures in place, issues such as BYOD (bring your own device) and use of messaging services as mentioned above are becoming increasing w w w. b u s i n e s s c h i e f. c o m
29
LEADERSHIP SHOWCASE
30
“ WhatsApp’s team worked on the same functionality for two years and still offers only 1:1 voice calls. Wire has had encrypted conference calls since its launch” — Morten Brøgger, CEO, Wire
SEPTEMBER 2018
prevalent across North America, and won’t be accepted under the new regulation for any business dealing with the data of EU citizens. Becoming a frontrunner across all markets, Wire has issued a new golden benchmark through its E2EE solutions. It has now sought to support other businesses by effectively mitigating risks of potential data leaks to third party sites. “If your organization has had a security incident then your image and trust is threatened,” says Brøgger. “Ultimately, customers and partners will try and find other places to buy or partner up where their data can be trusted.
31
“As privacy awareness goes up consumers will start ‘voting with their feet’ and avoiding companies with questionable security and privacy practices.” Setting up a sales office in San Francisco, Wire’s services and capabilities are set to further grow across North America. Its new service, Wire Red, will form part of its evolution, and enable enterprises to use this service as a communication contingency plan. “Our end-to-end encryption and security by design allows for large companies to continue to conduct business as normal even when they’re in the midst of a crisis,” concludes Brøgger. w w w. b u s i n e s s c h i e f. c o m
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TECHNOLOGY
LEWIS DRIVING CHANGE 34
THROUGH TECH SHE CAN
Despite decades of progress, women remain significantly underrepresented in the UK’s technology workforce. With PwC’s Tech She Can charter looking at ways to break down barriers, LEWIS’ Managing Director Ruth Jones discusses how technology is reshaping career pathways WRITTEN BY
SEPTEMBER 2018
CATHERINE S TURM AN
35
w w w. b u s i n e s s c h i e f. c o m
TECHNOLOGY
T
he fourth industrial revolution is significantly disrupting the way we live, work and interact.
Traditional industries and ways of working are
being fully transformed through digitisation, yet
it is imperative that a diverse, global workforce can adapt to such change. However, despite such a monumental shift, women continue to be underrepresented within the global technology workforce. A recent report by PwC entitled Women in Tech: Time to close the gender gap, highlights that women, on this occasion in the UK, remain discouraged from working in technology, with 83% of female students unable to name a famous female role model in technology 36
and only three per cent stating a career in technology to be their first choice. “As our personal and working lives become increasingly shaped by technology – technology products and services are being developed and delivered based on the perspectives of only one half of the population, and not designed with the needs of everyone in mind,” the report states, adding: “If half the population is being overlooked as a source of technology talent, then the UK is effectively trying to compete internationally with one hand tied behind its back.” Global professional services network PwC has found that gender bias starts in schools and carries on through each stage of a child’s education. 61% of females indicated that they have been dissuaded from a career in technology due to the limited SEPTEMBER 2018
“ WE’RE FINDING A SHIFT IN THE INDUSTRY, WHERE IF WE PUT CREATIVITY, CONTENT AND CONTEXT AT THE HEART OF EVERYTHING WE DO, WE’RE ABLE TO OFFER CLIENTS A SINGLE VIEW BUT ARTICULATE IT ACROSS TECH-BASED PLATFORMS” — Ruth Jones, Managing Director, LEWIS
37
advice given. “Although heavily involved in STEM subjects at a younger age, I was discouraged by the sexism that surrounded me when I took part in competitions and conventions,” a female pre-university student noted. “There is a stereotype that empirical studies are male subjects only, and the institution to which I currently belong perpetuates this belief obliquely. I felt discouraged from taking the sciences,” another female pre-university student added. This must change. w w w. b u s i n e s s c h i e f. c o m
TECHNOLOGY
“ THE INDUSTRY AS A WHOLE IS NOW LOOKING AT HOW TO SHAPE LEARNING FOR THE FUTURE, AND THIS SNEAKS INTO ADULT LEARNING, AS WELL AS THE FUTURE CAREER PATH” 38
— Ruth Jones, Managing Director, LEWIS
TECH SHE CAN CHARTER In order to take a closer look at the root causes of women’s reluctance at a societal level, PwC has launched its Tech She Can charter. Joining over 30 organisations across the UK, global integrated communications business, LEWIS, has made commitments to promote careers in technology for both genders, looking to enable workers to reach their potential and to share best practices. Established by former Financial Times SEPTEMBER 2018
39
journalist Chris Lewis in 1989, LEWIS has
held by women, where flexible
evolved from a news-driven agency into
working schemes have enabled
a company that defines a central market-
working mothers to return to
ing strategy stemming from brand develop-
work, alongside the enhanced
ment and PR, to sales enablement and
maternity packages and shared
digital execution.
leave on offer to staff.
As part of the charter, LEWIS will work
“When women think of a career
to show how women can enjoy the technol-
inside technology, it doesn’t
ogy sector but also develop great careers.
necessarily need to be working
In the company’s UK workforce, 55% of
directly with data, digital or ICT.
senior positions (Director and above) are
It can be a career in the creative w w w. b u s i n e s s c h i e f. c o m
TECHNOLOGY
Click to watch: ‘LEWIS Global Communications, Does gender or age matter in creativity?’ 40
industries that supports companies in
tions, there is wide recognition that
technology and applies technology to,
customer journeys need to become
for example, marketing services,”
one, common conversation. We’ve
explains Ruth Jones, Managing Director.
seen that in the industry.”
“We’re finding a shift in the industry, where if we put creativity, content and
PROMOTING EDUCATION
context at the heart of everything we do,
At present, only 15% of people working
we’re able to offer clients a single view but
in STEM roles in the UK are female,
articulate it across tech-based platforms
indicating that the country’s future
and channels – from infographics
technology talent will remain heavily
through to 3D experiences, as well as
male-orientated. In addition, recruiters
the traditional written word.
have expressed their concerns
“Through a collision of marketing, digital, technology and communicaSEPTEMBER 2018
surrounding the difficulty of recruiting knowledgeable, skilled individuals
FACTS
within STEM. A Global CEO survey has revealed that two thirds of UK CEOs say recruiting people with digital skills is difficult, compared with only 43% of CEOs in the US and 24% in China. With this in mind, providing in-house training, as well as funded apprenticeship pro-
PwC’s Tech She Can Charter The Tech She Can Charter was launched by PriceWaterhouseCoopers in February 2018, joined initially by over 12 firms including giants such as Tesco and JP Morgan, with many more having since been added. The main commitments organisations have made as part of the charter are:
grammes, LEWIS remains keen to offer permanent positions, with the aim to be part of the personal and professional development of its employees. By partnering with schools, providing female role models and ensuring inclusive access to the sector, UK organisations will then gain the ability to build a robust upskilled and adaptive workforce, introducing technology modules which can be delivered in schools by teachers or through virtual reality to develop the UK’s technology talent. “We also go to universities
• Working with schools to inspire pupils and teachers about careers in tech • Supporting social mobility by targeting schools in the UK Government’s defined social mobility ‘coldspots’ • Promoting and celebrating successful female role models at all levels • Ensuring inclusive access to technology training and technology roles within their own organisation • Supporting formal work experience and internship programmes to encourage more females to consider a career in tech • Sharing best practice with all other organisations across the charte
and spend a lot of time giving talks around careers at various different universities, here at LEWIS. We also have a partnerw w w. b u s i n e s s c h i e f. c o m
41
TECHNOLOGY
“THROUGH A COLLISION OF MARKETING, DIGITAL, TECHNOLOGY AND COMMUNICATIONS, THERE IS WIDE RECOGNITION THAT CUSTOMER JOURNEYS NEED TO BECOME ONE, COMMON CONVERSATION” — Ruth Jones, Managing Director, LEWIS
42
ship with Chelsea College of Art,
continues to evolve the way in
so connecting through educa-
which individuals can develop
tion is something that embodies
a technology career, with a num-
us,” explains Jones.
ber of roles available.
“We’re looking to invest more.
“Technology is central to every
The industry as a whole is now
part of our lives. Children and
looking at how to shape learning
young adults are coming into the
for the future, and this sneaks
workforce digitally enabled.
into adult learning, as well as
Everyone’s going to have a nat-
the future career path. Ultimate-
ural affinity for technology and
ly, we’re entering a world where
they’re going to see a much
continuous learning is an abs-
clearer path to why technology
olute necessity.”
plays a central part in our every-
While only 5% of leadership positions in the technology
day lives,” notes Jones. “The single most important
industry are presently held by
thing for me is attracting more
women, where girls are less
people into technology so that
likely to study STEM subjects at
we can support the economy
school or university, technology
going forward.”
SEPTEMBER 2018
43
w w w. b u s i n e s s c h i e f. c o m
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CITY FOCUS
City Focus
46
SAN FRA SEPTEMBER 2018
ANCISCO A popular travel destination for both business and tourism, San Francisco is home to an eclectic cultural mix which reflects its diverse economy WRITTEN BY
CATHERINE STURMAN
w w w. b u s i n e s s c h i e f. c o m
47
CITY FOCUS | SAN FRANCISCO
48
SEPTEMBER 2018
K
nown as ‘Golden Gate City’, San Francisco’s stunning landscapes, robust infrastructure and
exceptional living standards make it one of the fastest-growing cities in America.
Underpinned by a global epicentre of technological advancement, talent remains high, with many opportunities available for those who wish to grab them across the Bay Area and the city of San Francisco. Second only in the US to New York City, the population of San Francisco is set to surpass 960,000 by 2035, leading to a number of challenges in housing, employment and infrastructure. In 2017, the number of visitors to the city reached 25.5mn, amassing $9.10bn in total spending. This year, the city has forecast a total of 26.3mn visitors, with spending projected to reach $9.46bn.
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CITY FOCUS | SAN FRANCISCO
THE DOT.COM BUBBLE Leading on from the dot.com bubble, the emergence of social media and consumer technologies, the Bay Area has become a dominant force within business innovation and financial advancement. Silicon Valley, situated in Santa Clara County, has attracted some of the most respected names in technology, with 29 Fortune 500 companies locating their headquarters in the city, such as Google and Apple. In 50
2016, the city gained a GDP of $781bn, leading the region to remain a global digital hub. The tech giants are two of the most valuable companies in the world, inspiring entrepreneurs to achieve the same level of success. The number of technologyfocused positions continues to rise, with product development engineer and product management roles providing an average salary of $173,570 and $173,556 respectively, according to Indeed. Data analytics, cloud technology, software developSEPTEMBER 2018
51
ment, DevOps and machine learning are also particular areas of focus for technology companies across the city. Fully inspiring a raft of start-up ventures, the Bay Area’s global position has led the city of San Francisco’s educational facilities to also up their game, transforming it into one of the most prestigious areas of learning in the US, with 50% of residents obtaining a degree. Supported by its strong economic growth, the city is renowned for providing some of highest incomes in the US within the technology, finance and healthcare sectors, as San Francisco continues to drive increased tourism.
960,000 San Francisco’s projected population in 2035
80,000
the number of tourism jobs in 2017
43,000
number of jobs created by San Francisco International Airport w w w. b u s i n e s s c h i e f. c o m
CITY FOCUS | SAN FRANCISCO
CHANGING PRIORITIES With a longstanding reputation in the world of finance, made clear by the number of banks, real estate firms and law corporations situated within the cityâ&#x20AC;&#x2122;s iconic Financial District, an established tax exemption for biotechnology companies has now also led to a significant boom in healthcare roles in San Francisco and the Bay Area. While the University of California has focused its efforts on promoting biomedical innovation at 52
SEPTEMBER 2018
the 20 facilities under its umbrella,
restaurant and entertainment scene.
it is also the parent organisation of the
For tourists, popular sites such as
University of California San Francisco
Fishermanâ&#x20AC;&#x2122;s Wharf and the Chinatown
Center. San Francisco State University
District celebrate San Franciscoâ&#x20AC;&#x2122;s
also houses over 30,000 students
varied heritage, where the number of
with over 500 courses on offer.
jobs in the tourism industry exceeded
Taking full advantage of its rich
80,000 in 2017, delivering over
multicultural history and artistic flair,
$714mn in taxes and fees. Overseas
San Francisco has also catered to
spending represented over 86% of
those who wish to study and work
total visitor spending in the same year,
within art, design, film or music, as
with China leading the way at $1.59bn.
well as baking and hospitality, in order
India, the UK, South Korea and Taiwan
to provide for its infamous bustling
followed close behind. 53
w w w. b u s i n e s s c h i e f. c o m
CITY FOCUS | SAN FRANCISCO
ONGOING GROWTH With a growing surge of white collar workers and tech enthusiasts, those in lower-paid roles have been priced out of the housing market, with the average income in the city reaching $118,400. In the first half of 2018, San Francisco's median house price rose by $205,000, smashing records. The average price for a home in the city now exceeds $1.62mn. To support its subsequent 54
growth and appeal to residents
SEPTEMBER 2018
$714mn taxes and fees contributed by tourism in 2017
$205,000 rise in house prices in 2018
$8.4bn
business generated by San Francisco International Airport and visitors, the city continues to bolster its ability to remain a top destination, placing heavy investment within its transportation links. Those in the Bay Area can take advantage of the Bay Area Rapid Transit (BART) system, linking with smaller urban areas and counties nearby. Additionally, the Caltrain commuter line connects San Francisco Peninsula and Santa Clara County. Thirdly, the city remains one of w w w. b u s i n e s s c h i e f. c o m
55
CITY FOCUS | SAN FRANCISCO
56
the last places to maintain its historic
largest international terminal in North
cable car system, the San Francisco
America, San Francisco International
Municipal Railway, a significant tourist
Airport has been consistently named
attraction. Affectionately known as
as one of the best airports on the
Muni, the system has been modern-
continent, generating close to
ized to propel users to their destina-
43,000 direct jobs and $8.4bn in
tion, to the delight of tourists and
business activities. The facility also
residents alike.
plays a key role in international trade,
For those who regularly fly in and out of San Francisco, the city
having facilitated close to $54.6bn of imports and exports in 2016.
focuses heavily on delivering excep-
Not content in delivering world-
tional customer service. Home to the
class infrastructure and world-class
SEPTEMBER 2018
57
employment opportunities, San
become increasingly popular in order
Francisco ensures all new develop-
to reduce costs, congestion and
ments are built with sustainability in
pollution levels, leading the city to be
mind. The first US city to provide a
the home of several startup ventures
park within a 10-minute radius for
and renewable energy initiatives,
each resident irrespective of their
powering local businesses and homes
location, the city is home to a number
with solar energy.
of green spaces, parks and beaches
Technology will continue to drive
which are easily accessible; subse-
San Franciscoâ&#x20AC;&#x2122;s ongoing rise, keeping
quently, it has been ranked one of the
it as a top destination for thrill seekers
â&#x20AC;&#x2DC;most walkable citiesâ&#x20AC;&#x2122; in the US.
and corporate travellers throughout
Cycle-sharing and carpooling have
the years to come. w w w. b u s i n e s s c h i e f. c o m
50 CPOs 250 Peers Tons of fun!
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T O P 10
Top 10
60
biggest
hotel chains Here are the largest hotel chains in North America, according to their 2017 revenue figures WRITTEN BY
SEPTEMBER 2018
CATHERINE STURMAN
61
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T O P 10
09
Extended Stay America $1.28bn
Featuring popular destinations, such as New York, Washington DC, Miami and more, Extended Stay America has close to 630 properties spanning the US and Canada. The chain is targeted
10
G6 Hospitality LLC
62
$636mn
to customers on a budget, with spacious, pet-friendly suites and high specifications on offer across its locations. Catering for families, corporate businesses and short-stay travelers
With an estimated revenue of $636mn in
alike, children can stay for free, with
2017, G6 Hospitality has launched three
a multitude of choices for a varied cus-
brands to cater to its diverse demo-
tomer market. Headquartered in North
graphic, and embraced franchising to
Carolina, the business listed on the
further business growth. A subsidiary
New York Stock Exchange in a ‘paired
of French hotel chain, Accor SA, the
share’ with ESH Hospitality, Inc. www.extendedstayamerica.com
company has launched its longstanding economy brand, Motel 6, in 49 states, and five Canadian provinces. Similarly, its extended stay brand, Studio 6, aims to reinvent economy lodging and transform the guest experience. In 2014, the business added two new brands to its portfolio – Hotel 6 and Estudio 6, in a bid to enter the Latin America market. www.g6hospitality.com
SEPTEMBER 2018
07
Wyndham Hotels & Resorts $5.1bn
Situated in 66 countries worldwide with 8,000 hotels in its portfolio, Wyndham Hotels & Resorts has established 15 hotel brands. Within its portfolio, the business caters to
08
Choice Hotels $1bn
those on a budget with brands such as Travelodge, as well as corporate guests with brands such as Wyndham Garden. In recent years the group has won a number of accolades, in particular
One of the largest and most successful
for its rewards program which has been
lodging franchisors in the world, with
commended by US News and World
names such as Clarion, Econo Lodge,
Report, IdeaWorks and USA TODAY. www.wyndhamhotels.com
Comfort Inn and Comfort Suites under its umbrella, Choice Hotels caters to both corporate and leisure demand. With more than 6,800 rooms on offer, the business franchises over 6,300 properties, ranging from economy to luxury properties. In a bid to further expand its service offering, the business has recently finalized an agreement with C&O Bloomington to develop the Cambria Hotel Minneapolis at Saint Paul Airport, set to open in 2019. www.choicehotels.com
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T O P 10
05
AccorHotels $2.24bn
The largest hotel situated outside of US, pioneer Accor Hotels hosts up
06
InterContinental Hotels Group $1.78bn 64
to 500,000 guests each day across 25 hotel brands. In 2016, the business merged with FRHI Hotels & Resorts, where the FRHI Global Reservation Centre in Canada has been rebranded as Accor Hotels Global Reservations
Known for building superior brands,
Centre. From affordable, valuable comfort
with over 5,400 hotels worldwide, Inter-
brands such as Ibis, to high end luxury
Continental Hotels Group (IHG) gained
names, each houses its own vision to
revenue of $1.784bn in 2017, and bought
improve its services and aims for oper-
a 51% stake in Regent Hotels for $39mn
ational excellence. Looking to enter
earlier this year. Adopting a franchised
new markets, and is set to launch new
model, the business currently has 1,776
lifestyle brand, JO&JOE, which will
hotels in the pipeline, with 974 properties
cater to a growing millennial market in
under its portfolio. Its breadth and scale
regions such as Europe, Asia Pacific
covers 15 brands, serving a diverse client
and North and South America.
market in up to 100 countries, with more
www.accorhotels.com
than 100mn members enrolled in its rewards club. Not content with providing services in over 100 languages through its 18,000-strong sales team, the businessâ&#x20AC;&#x2122; food and beverage capabilities are also second to none, having contributed up to 15% of gross revenue in 2017. www.ihgplc.com SEPTEMBER 2018
03
Best Western $6bn (estimated)
Winning a multitude of awards and operating over 2,000 hotels in North America alone, privately held hotel operator Best Western boasts 4,200 hotels and motels under its umbrella. With three innovative brands: Best Western, Best Western Plus and Best Western Premier, the business provides
04
Hyatt Hotels Corporation $4.69bn
exceptional services to 58mn members in the US and Canada. The company’s most popular loyalty program, Best Western Rewards (BWR), comprises 35mn members and has earned top rankings on the US News & World
Since going public in the 1960s, US
Report’s Best Hotel Rewards Programs
based Hyatt Hotels Group has grown
list for six years in a row.
to 750 properties in 54 countries.
www.bestwestern.co.uk
The group is continuing to expand its portfolio across Latin America and the Caribbean, and has recently opened a number of new locations in Central and Latin America across several of its key brands, such as Hyatt Place, Grand Hyatt and Hyatt Centric. In total, the group has about 45,000 staff and total assets amounting to $3.52bn, as of 2017. www.hyatt.com w w w. b u s i n e s s c h i e f. c o m
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T O P 10
66
PICTURE BY
LORDRUNAR
02
Hilton Worldwide $9.14bn
Founded in the early 20th century, Hilton Worldwide has become one of the most famous hotel and resort companies in the world. Adopting a franchise model, the business has 14 brands, situated in six continents. Additionally, Hilton is set to open over 10 new hotels worldwide by the end of 2018, highlighting its continual bid to unlock opportunities in new and existing markets. www.hilton.com SEPTEMBER 2018
01
67
Marriott International $22bn
Surpassing all other hospitality chains, longstanding hospitality juggernaut Marriott International operates in over 125 countries, franchising more than 6,500 properties. The largest hospitality provider in the world, its vast footprint has enabled it to gain a loyal following, as it seeks to put its customers first whilst pursuing excellence across its 30 award-winning brands. Negotiating competitive rates for customers worldwide, the business acquired Starwood Hotels & Resorts in 2016 for $13bn, the largest-ever acquisition of a hotel chain. Marriott remains committed to delivering exceptional guest experiences, gaining 110mn combined loyalty members across its three programs: Marriott Rewards, Starwood Preferred Guest and The Ritz-Carlton Rewards. www.marriott.co.uk PICTURE BY
ANOUCHKA
w w w. b u s i n e s s c h i e f. c o m
TECHNOLOGY and the CHANGING FACE of MORTGAGE LENDING The downturn in the mortgage lending market around a decade ago resulted in financial regulators imposing strict requirements on borrowing. New technology has been crucial to ensuring operations run smoothly, however as Joshua Hebert, Senior VP and CIO of Highlands Residential Mortgage explains, rather than being a hindrance, this has turned out to be a win-win for the industry WRIT TEN BY
LEIL A HAWKINS PRODUCED BY
ANDY TURNER
HIGHLANDS RESIDENTIAL MORTGAGE
T
he downturn in the mortgage
was like buying a car,” he says.
lending market around a
“You sit in front of someone and
decade ago resulted in
fill out reams of paper, but now a
financial regulators imposing strict
consumer completes an online
requirements on borrowing. New
application, and provides all of
technology has been crucial to
the necessary information to us.”
ensuring operations run smoothly,
70
On a broader scale, it enables
however as Joshua Hebert, Senior VP
the organization to operate with
and CIO of Highlands Residential
more flexibility in a fluctuating
Mortgage explains, rather than being
market. “There is a constant
a hindrance, this has turned out to be
disruption where volume goes up
a win-win for the industry.
and down” Hebert explains. “It’s
Highlands Residential Mortgage,
cyclical to some degree due to
founded in 2010, has seen explosive
the timing throughout the year
growth in the last five years. To help
when people buy their homes, but
manage this the organization reached
you have to utilize technology to
out to Joshua Hebert, who has over 15
make it very flexible, especially in
years’ experience in mortgage banking.
cost. The old days of buying a
The financial crisis of the late nough-
solution outright and trying to use
ties brought with it increased regulation,
it over the next three to five years
but Herbert explains that this has in fact
is not as prevalent anymore. Now
lent itself well to technology. “Now we’ve
it’s like leasing technology, you’re
got to put all these requirements in
paying either per unit or per seat
place, what better solution is there than
and a lot of times those contracts
technology to do that?” he explains. “It
are written in a way that’s very
created a level playing field amongst all
flexible, so if your company grows
the companies in this industry, because
the technology and the cost grow
now everyone has to operate in the
with it, if the company downsizes,
same way.”
the cost comes down.”
It has also transformed the experience for customers. “For many years it SEPTEMBER 2018
As a result, Highlands has switched from CAPEX (the
TECHNOLOGY
capital expenditure model) to OPEX (the
“where they ultimately manage,
operating expense model), where they
service and support all of those
pay-per-site and employee rather than
types of technology for me so
paying upfront costs.
I no longer have to, from a
To support this change Highlands partnered with Computex, an IT solutions provider
strategic standpoint.” “From network to voice to
headquartered in Houston, Texas. Hebert
cybersecurity to technology
explains that Computex took Highlands’
support, all of it has been
infrastructure and support needs, which were
enhanced” he says. “We had
mainly centred around a traditional IT
support from 9-5 before, now
structure, including the voice, network and
we have it 24-7. We did it in
subdirectory, and helped transform it into a
such a way that I didn’t have to
managed service provider (MSP) model,
hire a whole bunch of people to 71
“ The amount of effort, time, communication and collaboration we go through on every single loan makes us different” — Josh Herbert, Senior VP and CIO of Highlands Residential Mortgage
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HIGHLANDS RESIDENTIAL MORTGAGE
maintain it because ultimately, we’re using a managed services provider to do it. We’re able to build the model out to its predictive cost, whereas in the past, when we would do a proforma to see if a particular branch location was going to be profitable based on how we do business, they would always come up with an arbitrary number and it was very difficult to determine the total cost of technology for that location.” Computex use the most up-to-date technology, allowing Herbert and his 72
team to focus on the more strategic aspects of the business. “Things that are very industry-specific like the consumer experience and fraud, areas that are ultimately going to drive the business forward, that can bring in additional volume for the organization.” In terms of fraudulent activities, new regulations have weeded a lot of these out, however issues like phishing and fake pay stubs still occur because of how easy it is to create bogus payslips. “But there are a lot of solutions that can analyze these and make a phone call to the employer to validate whether that pay stub is truly accurate and that person really does work at that organization,” Herbert explains. SEPTEMBER 2018
TECHNOLOGY
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HIGHLANDS RESIDENTIAL MORTGAGE
While interest rates may be high,
differentiator. “We are very nimble so
making property buying less afford-
consumers are coming at us with all
able, and the market as a whole has
kinds of different scenarios. It could
slowed down as far as mortgage
be their credit or the timing in which
applications go, Highlands has had a
they need to get their loan done. We
record year of growth. Hebert
are able to support someone closing
explains that what sets them apart
a loan in as little as 10 days if that’s
from their competition is their cus-
what is needed, when most of the
tomer service. “The amount of effort,
larger organizations take between
time, communication and collabora-
25 and 60 days.”
tion we go through on every single loan makes us different,” he says. He also cites their agility as a key
In addition, Highlands was named as one of the 50 best companies to work for in 2015 and 2016. Hebert puts this
hardware. software. brainware. Computex Technology Solutions is an award-winning solutions provider with over 30 years of experience helping clients evolve their business through technology. At our core, we are architects and engineers that specialize in delivering data centers, enterprise networking, cybersecurity, cloud and managed services & emerging technologies with offices in Florida, Georgia, Michigan, Minnesota & Texas.
CLICK HERE TO LEARN MORE ABOUT OUR TAILORED SOLUTIONS 5355 W. SAM HOUSTON PKWY N. SUITE 390 | HOUSTON, TX 77041 (713) 780-7580 | SOLUTIONS@COMPUTEX.NET
www.computex.net
TECHNOLOGY
“ We are able to support someone closing a loan in as little as 10 days if that’s what is needed, when most of the larger organizations take between 25 and 60 days” — Josh Herbert, Senior VP and CIO of Highlands Residential Mortgage
75
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HIGHLANDS RESIDENTIAL MORTGAGE
“The old days of buying a solution outright and trying to use it over the next three to five years is not as prevalent anymore” — Josh Herbert, Senior VP and CIO of Highlands Residential Mortgage 76
down to being a small, independent
and challenge each other. We’re all
organization. “We’re not bank-owned,
about supporting our employees.”
we’re a family-oriented laidback
Since Hebert joined Highlands in
company, so from a cultural stand-
2016, he cites his biggest achievement
point we’re not constantly breathing
as revamping the organization’s IT
down your neck. We don’t just talk
operations. “Overhauling the infra-
about leadership, we live it. We are
structure was very much about our
very much about hiring qualified,
internal employees, and we needed to
quality employees who can get the job
build that foundation. Now we have
done with little to no micromanaging
that in place we can go out and put
in a heavily regulated environment
these strategic technologies in, that
where you have to know your stuff, but
will ultimately bring in additional sales
at the same time we like to have fun
and loans.”
SEPTEMBER 2018
TECHNOLOGY
77
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SEPTEMBER 2018
TECHNOLOGY
Chayora: INTERNATIONAL SCALE IN CHINAâ&#x20AC;&#x2122;S DATA CENTRE SPACE WRIT TEN BY
DA LE BENTON PRODUCED BY
MIK E SADR
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C H AY O R A
CHAYORA DELIVERS HYPERSCALE INFRASTRUCTURE IN CHINA, CONNECTING INTERNATIONAL LEADERS TO THE MOST EXCITING MARKET IN THE WORLD ith just under 20% of the world’s online community existing within the country, and with annual user numbers growing faster than anywhere else, China is one of the most exciting online technology markets in the world. In 2017, the State Council also set out a vision to establish China as the number one artificial intelligence hub globally, identifying AI as a key driving force of the country’s economic growth over the next decade. Last year alone there were 772 million people online in China, representing 56% of the country’s 1.4 billion population. With a huge customer base and with China looking to surpass the United States as the world leader in
W
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SEPTEMBER 2018
GDP terms, it is no surprise that many major international organisations and businesses are increasingly turning towards the country. There are however, many hurdles to clear as access to the technology sector in particular is still subject to tight regulation. “Those figures alone show that it truly is an amazing market,” says Oliver Jones, Chief Executive of Chayora. “But in order to be able to have access to this massive and valuable population, you cannot operate effectively from overseas. You have to have your servers inside mainland China, in a properly licenced data centre and that’s what starts to present challenges to aspirant new entrants.” “It is also where we come in. Chayora
TECHNOLOGY
81
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C H AY O R A
82
has invested a significant amount of time and money to operate entirely in line with China’s regulations, laws and ambitions as set out in the Five-Year Plan, in order to enable international companies to access China.” Chayora is an infrastructure developer focused on the building and operation of data centre platforms, with a series of hyperscale, fully licensed data centre campuses in key locations across China. Founded together by Jones and his business partners Jonathan Berney who now acts as Chief Operating Officer at the company and Steven Cao, Chayora has a simple vision: to build a trusted international service provider that enables international companies to access this market potential. “We are aiming to combine the best of China and the best of the international
“ We are aiming to combine the best of China and the best of the international environment, for the benefit of our customers” — Jonathan Berney, Chief Operating Officer, Chayora
SEPTEMBER 2018
environment, for the benefit of our customers,” says Berney. “And we feel very strongly that being able to contribute to the economic, political and social environment that we operate in is critical.” 2018 will represent a milestone year for the company as it will complete its initial facility, the TJ1 Data Centre, on its hyperscale data centre campus in Beichen, northern Tianjin. Located
TECHNOLOGY
Chayora; the Tianjin Data Centre Campus covers Beijing
83
between Beijing and Tianjin at the heart of 150m people in the tri-province, TJ1, which is targeting an operating date for early 2019, will be the first data centre of the company’s wider Tianjin hyperscale 300MW, 32-hectare (80-acre) campus which will ultimately comprise nine major data centre facilities. For Jones, this facility is a shining example as to what Chayora can become on the global data centre stage. “What we want to be is a trusted, hyperscale campus provider and
operator so that when people think China, they think Chayora,” he says. “It’s an incredibly exciting time for the business as we can enable some of the biggest companies in the world to fulfil their potential in China.” A crucial element in achieving that vision, something that is arguably more important than the facility itself, is establishing a reputation as an organisation that these international companies can place a great deal of trust in. w w w. b u s i n e s s c h i e f. c o m
C H AY O R A
The population of China at 1.4 billion people accounts for one fifth of the world’s population More than the US (298m), the EU (503m) and the former USSR (293m) combined. China has the world’s second largest GDP today at $11 trillion 60% of that of the US and predictions suggest that China could overtake the US in 10 years: and be 2x by 2050. THE EMERGENCE OF CHINA AS THE WORLD’S LARGEST MARKET IS UNQUESTIONABLE 84
China already has the greatest number of Internet users 772 million as of Dec 2017 – 19% of world users. Internet user saturation in China is just 56% This is compared to USA Internet user rates which are c.93% of the population. Adoption is extraordinarily rapid with an increase of 36 million in the last 6 months More than the whole population of the UK every year; at least half a billion people in China will be new online users in the next five years.
SEPTEMBER 2018
TECHNOLOGY
85
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C H AY O R A
Establishing this level of trust starts with Jones and Berney. Both men come from very similar career backgrounds, having worked in a number of consulting, services, engineering and technology focused roles all over the world and specifically across Asia. The two met when they found themselves working together as partners and were tasked with exploring the potential of a large international bank wanting to build and operate a data centre in China. It is their deep and diverse service 86
View of Tianjin facility under construction
SEPTEMBER 2018
sector experience that Berney feels enables both himself and Jones to have a certain level of confidence and a keen understanding of how to work with large customers on an international scale. “I think it’s valuable that both Oliver and I have worked in a global environment and also in local environments in Asia and Europe and can recognise and bridge between perspectives” says Berney. “As entrepreneurs in the fast moving
TECHNOLOGY
and exciting Data Centre market in China, we have the opportunity of recognising and leveraging the very best of what China has to offer, which in Tianjin means new, resilient and very high-quality power infrastructure and highly supportive local government, but also to be able to bounce back from and learn from experiences where we don’t get it right. This means we need to see the “big picture” but not be tripped up by the detail. Ultimately our roles are to create a passionate
belief, communicate our vision and get all our stakeholders to come on the journey with us.” Chayora’s ambition includes giving global customers a consistent level of international hyperscale data centre facilities like they would expect anywhere else in the world. We want to be a trusted partner and seen as an enabler of our customers’ success in China. “Trust takes time,” says Jones. “You have to earn it in any sector, but in 87
w w w. b u s i n e s s c h i e f. c o m
C H AY O R A
“ We feel very strongly that being able to contribute to the economic, political and social environments that we are operate in is critical.” — Jonathan Berney, Chief Operating Officer, Chayora 88
Click to watch: Jonathan Berney talk to Data Economy ‘China demystified. From data centre leaders to foreign investment opportunities’
SEPTEMBER 2018
TECHNOLOGY
order to earn trust in the data centre market in China it’s not only about building a worldclass facility, it is then about going on to operate it consistently to standards that will satisfy international customer demands.” Listening to and understanding the customer is essential to delivering these standards, but both Jones and Berney recognise that the company cannot simply rest on the notion that it delivers ‘just enough’ – it has to exceed expectations. As Berney notes, there are a number of companies that can provide data centre 89
The Chayora Tianjin campus: 9 major Data Centres with 300MW+
w w w. b u s i n e s s c h i e f. c o m
C H AY O R A
The stunning Tianjin railway station
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facilities in China to international businesses but Chayora’s ambition is to be known as the company which delivers what it promises, all of the time, every time and that what it promises is to achieve international standards of performance, scale and consistent quality that meet the requirements of international customers and are the best available in China. “To put it simply, we need to deliver value,” says Berney. “We need to deliver value to our customers and stakeholders in order to be trusted by them. That’s critical for us, but what’s ultimately even more important is having a drive for excellence as well. Near enough is never good enough for Chayora.” SEPTEMBER 2018
TECHNOLOGY
“ We are absolutely crystal clear on the strategy for Chayora; providing the fundamental infrastructure to enable major international companies to access and succeed in China and ultimately deliver prosperity to China.” — Oliver Jones, Chief Executive Officer, Chayora
93
Click to watch: Disruptive’s interview with Oliver Jones, at Cloud Expo Asia, Hong Kong, 2018
w w w. b u s i n e s s c h i e f. c o m
C H AY O R A
“ What we want to be is a trusted, hyperscale campus provider and operator so that when people think China, they think Chayora.” — Oliver Jones, Chief Executive Officer, Chayora
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SEPTEMBER 2018
TECHNOLOGY
That’s what the Tianjin hyperscale campus represents for the company and its customers: a physical manifestation of Chayora’s ambition and drive for excellence. It shows customers that Chayora is not only incredibly ambitious in its vision but can deliver on it both now and in the future as the company continues its growth journey and adds further campuses to its portfolio. “We are at a massively exciting moment for our business because it’s a very significant inflection point for Chayora,” says Jones. “The hyperscale market is growing rapidly and it’s growing at an incredible rate. We are absolutely crystal clear on the strategy for Chayora, providing the fundamental infrastructure to enable major international companies to access and succeed in China and ultimately be part of the new and burgeoning prosperity of the country.” Over the next five years, Chayora will look to add a further four hyperscale campuses across China as it looks to cement its position as the go-to partner for international customers targeting online business in the country. The future of Chayora will of course be dictated by the evolving marketplace, but ultimately it will be defined by the very same thing it has always been defined by: the customer. “I can genuinely see us as a business going into new places and a whole series of new directions with our customers,” says Berney. “That comes down to the trust we have developed with them. As they embark on their growth journeys here in China, they want a trusted data centre partner that can deliver and exceed and that is Chayora.”
w w w. b u s i n e s s c h i e f. c o m
95
Enterprise
optimisation with WRIT TEN BY
ANDRE W WOODS PRODUCED BY
GLEN WHITE
KAR
We talk to Ronald Wright, Senior Director of Procurement and Enterprise Optimisation at KAR Auction Services who talks us through the ever-evolving landscape of auto auctionsâ&#x20AC;¦
K AR AUCTION SERVICES, INC
W
orking across more than 300
Automotive Finance Corporation (AFC),
locations in North America,
among others – are at the heart of
KAR Auction Services
this vibrant marketplace, providing
comprises a family of companies
wholesale and salvage auctions as
providing innovative, technology-driv-
well as detailing, dent repair, logis-
en, end-to-end vehicle remarketing
tics, transportation and more. With
solutions. Auto remarketing is a big
operations spread across North Ameri-
business in North America, with 290
ca as well as the UK, implementing
million used vehicles currently in opera-
a comprehensive, enterprise-wide
tion across the continent. KAR and its
procurement strategy is a strategic
subsidiaries – which include ADESA,
imperative.
Insurance Auto Auctions (IAA) and
98
SEPTEMBER 2018
KAR’s unique platform supports the
S U P P LY C H A I N
sale of more than 5.5mn units valued
because that’s too narrow of a focus
at over $40bn through its auctions.
of what we do. If there needs to be
Ronald Wright is Senior Director of
optimisation of a process, we’re there.
Enterprise Optimisation at KAR and it
If there needs to be optimisation of
is his job to ensure support and supply
a particular project, we’re there. If there
across the company. Just don’t use
needs to be optimisation of how we
the dreaded ‘p word’…
bring value, again, we’re there. If there
“We don’t even use the word
needs to be optimisation in cost, we’re
‘procurement’ here,” he says, speaking
there. That’s why we’re enterprise
from his Indiana office. “We call our
optimisation. We’re not sourcing, we’re
operation ‘Enterprise Optimisation’.
not a supply chain, we’re not procure-
We don’t talk about procurement
ment. Moreover, this umbrella of
99
w w w. b u s i n e s s c h i e f. c o m
K AR AUCTION SERVICES, INC
enterprise optimisation allows us to
Some of the biggest challenges
come to you with a variety of skills and
facing Wright come from the constant-
solutions in the space.”
ly expanding and retracting need for
A former procurement specialist
100
labour. “We run physical auctions all
from the US defence industry, Wright
52 weeks of the year. As an example,
outlines the operational pillars that
say I have an auction that regularly
have helped his team optimise KAR’s
runs 1,500 cars in a roughly four-hour
growth. “Our team today operates on
period. Now, they need a lot of labour
four pillars: teamwork, adaptability,
to be able to get those cars across the
innovation and trustworthiness. The
auction block. We have to check each
questions we always ask are: what
vehicle in when it arrives at our facility,
are our customer’s needs? What are
we have to upload its information into
their requirements and how do we
our system, we have to line the vehicles
bring those requirements efficiently
up in the order they’re scheduled to be
and effectively to our partners in the
auctioned, and we have to drive them
marketplace, so that we can achieve
across the auction block. We also
the overall goal?”
handle all the transactions and all of
This notion of Enterprise Optimisa-
this is happening at a facility within
tion sees a shift from the traditional
a four-hour period, which requires
sense of procurement as a cost-saving
anywhere from between 100 to 120
measure to a broader, more holistic
temps. Outside of that four-hour
approach. “Our CFO is a unique senior
window, during the rest of the week we
manager, because his first goal is to
have employees handling mechanical
bring value to the organisation. His first
work, detailing, body shop work and
goal isn’t, ‘Hey, how much money can
more – and we have temp employees
you save?’ He does want us to save
helping with other things going on
money, but he’s more concerned about
around the lot.”
the intrinsic value that we can bring to
To help with labour demands KAR
the organisation and our customers. That
has fostered partnerships with some
doesn’t always mean the lowest cost.”
key suppliers. “One of our vendors
SEPTEMBER 2018
S U P P LY C H A I N
BIO
“ WE’RE SEEING THE CHANGING DYNAMICS OF THAT ONLINE BUYER WHO DOESN’T PHYSICALLY COME TO OUR AUCTIONS” — Ronald Wright, Senior Director of Enterprise Optimisation
helps us replace windshields on vehicles. Our business is about velocity, moving cars quickly through our ecosystem and this vendor has been working with us on a number of system enhancements to make us better. Vehicles now have cameras everywhere and there are 10 to 12 different types of glass. Our vendor partner helps us to
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101
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S U P P LY C H A I N
Click to watch: KAR Makes $250,000 Contribution to Central Indiana City Life Wheels’ 103 mistake-proof the process of replac-
place. We want to be nimble and goal
ing windshields in the digital space,
motivated. It is important that we have
thus increasing the pace at which we
good communication with our supplier
do business.”
partners and a strong understanding
KAR also runs mechanical shops at
of what is expected. We can’t work
many of its physical auctions that do oil
with a supplier that doesn’t have at
changes, tyre replacements and other
least a national footprint or a digitised
modifications as requested by sellers
information system. That system should
and buyers, an area where Wright
track the progress of our working
sees possible partnerships. “We’re
relationship so we can track any
working to build stronger, more strategic
deficiencies and find opportunities
partnerships with key suppliers, but we
for improvement.”
can only do that once we’ve estab-
“For me, I can’t be involved with
lished a rapport with them and have
a supplier that doesn’t have the ability
a successful working relationship in
to give us what I call consumable, w w w. b u s i n e s s c h i e f. c o m
SAFELITE MAKES GETTING YOUR GLASS FIXED EASY With more than 70 years of service, Safelite knows auto glass. Safelite was founded at a single location in Wichita, Kansas in 1947 and has grown to become the largest auto glass specialist company in the United States with more than 720 locations nationwide. From front and rear windshields to side glass, weâ&#x20AC;&#x2122;re proud to serve 6 million customers every year. Whatever your auto glass needs may be, thereâ&#x20AC;&#x2122;s a good chance we can fix it through repair or replacement.
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S U P P LY C H A I N
visualised data that we can do some-
FACT
thing with. I need a supplier to be able
ADESA is a wholesale, usedvehicle auction operation with 75 locations and a complete online service offering for auto dealers, manufacturers, banks, finance, fleet, lease and rental companies.
to tell us that we have a pretty large battery spend, so we are able to drill down to the details of our battery spend to types of batteries we’re ordering, where we are buying them, and which areas of the company are buying the largest amount. You need that clarity in order to be able to find
The first area is how you interact and
value and efficiencies.”
interface with your customer. We’ve been
“One of the unique things about our
trying to move most of our suppliers to
space today is how our industry is
some type of digital interface where we
changing overall. We’re aligning our
can order product. I would almost liken
business and what we do with our
it to what we call the Amazon effect.
suppliers while also meeting the
Nowadays people are used to going
internal needs of our customer. If
online and being able to search and
you’ve ever been to an auction house,
order the things they like and need.”
you’ll know that usually a bunch of
“The second part of that is the
people watch a car come across the
increased level of expectation from the
block before bidding on it. Now, we
customer. Two-day delivery is stand-
simulcast all of our auctions across
ard. ‘We’ll get that to you in a week.’
North America, so people are able to
‘Huh? A week? Are you in the Stone
bid online. We’re seeing the changing
Age? I need to go somewhere else’.”
dynamics of that online buyer who doesn’t physically come to our auctions. We’re working with businesses to look at different ways to deploy our services to our customer base.” How has technology influenced that, specifically? “I would say in two areas. w w w. b u s i n e s s c h i e f. c o m
105
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SEPTEMBER 2018
SECTOR
DUNDEE PRECIOUS METALS:
EXPANDING A PORTFOLIO THROUGH OPERATIONAL EXCELLENCE WRIT TEN BY
DA LE BENTON PRODUCED BY
RICHARD DE ANE
w w w. b u s i n e s s c h i e f. c o m
107
D U N D E E P R E C I O U S M E TA L S
THROUGH THE TRANSFORMATION OF THE HISTORIC CHELOPECH MINE, DUNDEE PRECIOUS METALS LOOKS TO GROW THROUGH OPERATIONAL EXCELLENCE
I
n the mining industry, there is a belief for some that it is often the smaller exploration and mining companies that take the biggest risks which define
and redefine the status quo. Dundee Precious Metals (DPM) defines its vision as a progressive gold mining company that unlocks
108
and delivers superior value through innovation and strong partnerships with stakeholders. One of the company’s goals, is to grow its current mining production to around half a million ounces of gold per year over the next few years. It looks to achieve this by developing a number of projects across its portfolio, which includes exploration and development projects in Bulgaria, Canada and Serbia. “Part of our strategy is built around possessing the capability to execute projects on time and within budget,” says John Lindsay, Senior Vice President, Project Development. “But it’s also about having the ability to scope a project and to actually understand what makes a project the right project.” Dundee Precious Metals strives to deliver excellence in sustainability and to create value for all its shareholders, be they investors, government or the SEPTEMBER 2018
MINING
“PART OF OUR STRATEGY IS BUILT AROUND POSSESSING THE CAPABILITY TO EXECUTE PROJECTS ON TIME AND WITHIN BUDGET” — John Lindsay, Senior Vice President, Project Development
109
local community. It aims to deliver this excellence through its commitment to its six core values; safety, dignity and respect, environmental responsibility, community investment, continuous improvement and transparency. Nikolay Hristov, SVP, Sustainable Business Development, believes this commitment plays a key role in propelling Dundee forward as a company. Hristov played a lead role in the company’s rehabilitation of its Chelopech mine, located in Bulgaria. Chelopech is an historic mining operation with production starting back in 1954. Over the course of its lifetime, w w w. b u s i n e s s c h i e f. c o m
D U N D E E P R E C I O U S M E TA L S
more than 19 million tonnes of ore
located very close to the nearby village,
have been produced.
not a single square meter of land had
Dundee Precious Metals acquired the mine in 2003 and since then,
between the community and the other
has reinvested the vast majority of
surrounding communities, not just that
its profits to transform the mine into
village, has been a very important com-
a world class operation.
ponent in this journey which is at the very
This transformation started by re-examining the environmental impact of the mine. “When we acquired the mine there wasn’t much thought given to the environmental impact of the operation,” 110
been rehabilitated. So, the relationship
says Hristov. “Even though the mine is
core of our strategy.” As a mining operation, the importance of a relationship with a local community and the local government can be the difference between success and failure. Hristov believes that the key to achieving environmental sustainability
Click to watch: Video timelapse Krumovgrad August 2018
SEPTEMBER 2018
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D U N D E E P R E C I O U S M E TA L S
is born through stakeholder relationships and he identifies the local community as a key stakeholder. This is echoed by Lindsay. “It’s doing well by doing good. So, if we do the right things in the communities and the countries that we work in then we will succeed as a business. This is a progressive and a credible company that’s going to benefit communities and that allows us to grow.” A mining company can walk the talk with regards to having a social licence to operate, but it has to be able to point to some consid112
erable successes or achievements that prove it is delivering on its promises. For Dundee Precious Metals, the most convincing proof that it is indeed doing things right is the company’s Krumovgrad development project in south-eastern Bulgaria. With the company targeting first gold production
“THE RELATIONSHIP BETWEEN THE COMMUNITY AND THE OTHER SURROUNDING COMMUNITIES, NOT JUST THAT VILLAGE, HAS BEEN A VERY IMPORTANT COMPONENT IN THIS JOURNEY WHICH IS AT THE VERY CORE OF OUR STRATEGY” — Nikolay Hristov, Senior Vice President, Sustainable Business Development
SEPTEMBER 2018
MINING
113
in late 2018, and adding more than
would not be successful.”
100,000 ounces per year to the compa-
The company took the project
ny’s production portfolio, Krumovgrad
back to the drawing board, taking
is a project that was “unlocked” by
into consideration the community
applying the company’s community
feedback and retooling its plans
relationship model, that was developed
based on redesigned tailings and
over the years at Chelopech.
processing flowsheet in order to
“It has a long history,” says Lindsay. “We presented an initial project back in 2010 but there were a number of
successfully develop Krumovgrad as a sustainable operation. “It demonstrated to the community
concerns from the local community
that we are a company that is pre-
regarding a tailings system and the
pared to listen and prepared to walk
processing method. It was clear that
the talk,” he says. “Originally we were
if we continued down that path we
trying to manage these discussions w w w. b u s i n e s s c h i e f. c o m
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MINING
remotely and we soon realised we
While Chelopech is not the compa-
needed to be talking face-to-face
ny’s only operation, it is a cornerstone
with people in the community. It really
of Dundee Precious Metals’ vision
paid dividends for us and gave us far
of delivering superior value through
more credibility as an organisation.”
innovation and strong partnerships.
In addition to the strong support of
Innovation is key to Chelopech as
local communities, Dundee’s approach
the company has invested heavily in
has garnered the support of other
developing the mine to be one of the
like–minded partners: In 2016 the
most digitally enabled mining opera-
European Bank of Reconstruction
tions in the industry today.
Development (EBRD) invested slightly
Dundee Precious Metals imple-
more than $43 million in the company
mented a ubiquitous wireless network
and noted at the time that the “partner-
throughout the mine, as well as innova-
ship will enable us to work together to
tive hardware solutions that send execu-
further raise standards in the mining
tion information from the underground
sector, focusing on innovation, sustain-
mine directly to the surface to capture,
ability and employment opportunities”.
monitor and gain valuable insights. w w w. b u s i n e s s c h i e f. c o m
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D U N D E E P R E C I O U S M E TA L S
FACT
Social license to operate
116
It is incumbent on all mining companies to find ways of operating responsibly, and to demonstrate social and environmental responsibility in credible and consistent ways. Operating responsibly has many faces, including maintaining strong relationships with our stakeholders and minimizing harm to the environment. It also includes ensuring that our employees are treated well, that they go home to their families safe and healthy, and that we strive to build sustainable communities that survive long after mine closure. Dundee Precious Metals Chelopech EAD is anchored by its values. The Company continuously pursues progress and development of the mining industry based on technologies, sustainable development and
SEPTEMBER 2018
concerted effort to protect the environment, as demonstrated by a number of international awards. Our corporate wide community investment policy focuses our community spending toward local development, based on dialogue with local leaders. Our Krumovgrad project will be a model of best practice social and environmental management, and serves as a demonstration of our six Core Values: Safety, Dignity & Respect, Environmental Responsibility, Community Investment, Continuous Improvement, and Transparency. These, together with the strategic imperatives support the Companyâ&#x20AC;&#x2122;s brand promise: We Succeed Because We Care. â&#x20AC;&#x201D; Nikolay Hristov, Senior Vice President, Sustainable Business Development
MINING
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w w w. b u s i n e s s c h i e f. c o m
D U N D E E P R E C I O U S M E TA L S
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“ CHELOPECH IS A FANTASTIC CASE STUDY WHEREBY TECHNICAL AND TECHNOLOGICAL TRANSFORMATIONS OCCURRED SIMULTANEOUSLY. IT IS A TRUE TESTAMENT THAT TECHNOLOGY AND TECHNICAL PROWESS CAN BE IMPLEMENTED SUCCESSFULLY IN MINING” — Theophile Yameogo, VP of Digital Innovation.
“Chelopech is a fantastic case study whereby technical and technological transformations occurred simultaneously,” says Theophile Yameogo, VP of Digital Innovation. “It is a true testament that technology and technical prowess can be implemented successfully in mining.” With technology evolving at such an immense rate, so too must companies such as Dundee Precious Metals. As the company looks to the future of technology in mining through artificial intelligence, machine learning and the Industrial Internet of Things (IIoT), it can do so based on the solid foundation of what it has achieved at Chelopech. “Technology is a never-ending human endeavour. So is our work at Chelopech,” says Yameogo. “As a company we will always build on our past successes to enable and drive new realities and accomplishments.” But as both Lindsay and Hristov stress, digitisation is all well and good but means nothing without an operational model that can enable and unlock the true value of technology. “We have spent a lot of time developing a very structured, disciplined operating model that defines how we do our business,” says Hristov. “It’s easy to say we will digitalise but what does that mean? You need to have an underlying process in place.”
SEPTEMBER 2018
MINING
119
For Lindsay this operating model is one of if not the most important developments at the company, as he feels it is something that the company will implement across all of its existing and future operations. “What do we take away from Chelopech as a business?” he asks. “I think it’s that operating model and the ability to apply that operating model in other projects and other operations gives us an edge. It really sets us up very well to be able to exploit the opportunities that are available through digitisation both now, and in the future.” w w w. b u s i n e s s c h i e f. c o m
Watering a sun-baked state EPCOR is proving a flexible and reliable provider of water services to the people of Arizona: we look at a few of the more imaginative projects currently in hand
WRIT TEN BY
JOHN Oâ&#x20AC;&#x2122;HANLON PRODUCED BY
TOM VENTURO
EPCOR USA INC. / EPCOR UTILITIES INC.
E
PCOR is no newcomer to providing reliable utilities. It traces its heritage back to 1891
when it was established as an electrical power generator and distributor at Edmonton, Alberta – and the City of Edmonton still owns all of the company’s shares. And it was as long ago as 1913 that it built its first water treatment plant at Rossdale. In 2016, EPCOR celebrated 125 years of providing water and wastewater services to some 1.9m people across the Canadian provinces of Alberta, British Columbia and Saskatchewan, and the U.S. states of Arizona, New Mexico and Texas. 122
EPCOR’s first foray into the USA was in 2011 when it acquired Chaparral City Water Company in Fountain Hills, Arizona, followed in 2012 by the acquisition of Arizona American Water and New Mexico American Water, wholly owned subsidiaries of American Water Works Company Inc. Since then it has been building out its facilities and acquiring additional small water and natural gas businesses in Arizona, New Mexico and Texas as opportunities arise, says Engineering Director Andrew Brown. Brown joined EPCOR in 2013, bringing with him 25-plus years of water service experience from the City of Phoenix. Though arid in parts, and threatened by climate change-induced drought, Arizona SEPTEMBER 2018
CONSTRUCTION
123
Click to watch: ‘#BaskontheSask’
w w w. b u s i n e s s c h i e f. c o m
EPCOR USA INC. / EPCOR UTILITIES INC.
has a variety of water sources, chief among them the 336-mile long Central Arizona Project (CAP), which diverts water from the Colorado River. Other sources include the Salt River Project canal system and groundwater wells tapping into underground aquifers.
POPULATION DEMANDS AND NATURE’S CHALLENGES
“ The capacity at White Tanks] was stressed so we had to expand”
Brown and his team are respon124
sible for delivering a large annual
— Andrew Brown, Engineering Director
capital improvement program, one of which is the project to expand the White Tanks Regional Treatment Facility (White Tanks), built in 2009 to treat water from the CAP and supply it to consumers. This project provides a good illustration of the challenges faced by EPCOR in the State, and the best practices it is employing to meet them. White Tanks was originally designed to treat 20mn gallons of water per day (MGD) with a firm capacity of 13.4 MGD. The total capacity will be increased SEPTEMBER 2018
CONSTRUCTION
to 33 MGD as part of this project, he explains. “In recent years our peak demand in the summer has been pushing 19 MGD. The capacity was stressed so we had to expand.” A further challenge was that a number of events, including heavy rain events and storm runoff in the summer, can result in a surge of particles and mud to the CAP, which disrupts the plant’s treatment ability because of the time it takes for this turbidity to settle out. When these water quality ‘excursions’ happen, they can last for up to three weeks. Excursions don’t happen every year, but Brown and his team looked for a way to solve
White Tanks raw water basin
this problem at the same time as expanding the overall capacity of the plant. “We did something unique!” he says. “Besides taking the White Tanks Regional Treatment Facility from 20 to 33 MGD we knew we needed more enhanced treatment technology to address the excursion events and build resiliency in the treatment process.” The solution ultimately chosen was ‘ballasted flocculation’, which will provide more efficient and effective removal of particulate matter from the water. Conventional flocculation/sedimentation methods were dismissed due to both size and cost constraints. The ballasted flocculation system chosen for the White Tanks was a CoMag system from w w w. b u s i n e s s c h i e f. c o m
125
EPCOR USA INC. / EPCOR UTILITIES INC.
Evoqua Water Technologies. This uses an inert iron ore by-product called magnetite that attracts the particles and settles them as much as 30 times faster than conventional treatments. Once it has done that, the magnetite can be recovered and reused.
PARTNERSHIP IN PROJECTS Though magnetite flocculation had been used before in the USA for wastewater, the $28.7mn 126
White Tanks Regional Treatment Facility 2019 Expansion and Process Upgrade was the first in the country to use the CoMag system on the water supply end. It’s a pioneering project for EPCOR, the design team from Water Works Engineers and the contractor Archer Western, all of
Water Station After Photo inside
“We knew we needed some more enhanced treatment technology to take care of these excursion events” — Andrew Brown, Engineering Director SEPTEMBER 2018
CONSTRUCTION
127
Luke 303 WRF aerial close up
whom have worked together before. The project was won by Archer
facilities – and of course the CoMag plant – are the most important areas of
Western in a competitive tender; work
work currently.” The annual shutdown
started late in 2017 and is on schedule
of the plant – typically between late
to be completed with new treatment
November and early February to
systems online by March 2019. “We are
coincide with a CAP canal mainte-
also constructing a 20mn gallon raw
nance shutdown – will provide the
water reservoir where initial settling
opportunity to complete the expansion
takes place,” explains Brown. “That’s a
and connect it to the existing system.
lot of additional capacity at that point:
At the other end of the water cycle,
then we added some drying beds for
EPCOR is building a brand new
the sludge that is removed. Electrical
wastewater facility in Phoenix’s West
improvements, more back up power
Valley, close to the Luke Air Force Base.
generators, enhanced chemical
It’s of interest because of the phased w w w. b u s i n e s s c h i e f. c o m
EPCOR USA INC. / EPCOR UTILITIES INC.
128
“Electrical improvements, more back up power generators, enhanced chemical facilities – and of course the CoMag plant – are the most important areas of work currently” — Andrew Brown, Engineering Director SEPTEMBER 2018
way in which it is being introduced – there’s both industrial and residential development along the Route 303 corridor that circles the city. “We started by building a small pumping station for the initial flows, and at present we are pumping that wastewater into trucks and hauling it over to another of our facilities nearby for treatment.” The first phase of the 150,000
CONSTRUCTION
sewage plant. A bigger headache is the need to keep everything covered. Open water attracts birds: birds and low-flying aircraft represent a mutual threat!
LOCAL AND APPROPRIATE As Arizona’s cities expand, EPCOR will continue to provide localized solutions. “When you have lots of small developments and they are not contiguous then it can make sense to have localized treatment,” says Brown. This is good news for EPCOR and its partners. It happens that both the projects we have discussed so far have been delivered by the design/construction teams of gpd treatment facility has just been completed,
Water Works Engineers and
he explains, but is not being put into service
Archer Western Contractors
until flows from the mushrooming housing
(Walsh Group), however, EPCOR
development in the area are enough to make
works with many local consultants
it efficient to start up and operate – most
and contractors.
likely early in 2019. Eventually that facility could grow to its
Not everyone is blessed with a surface water supply. Many
master-planned capacity of 8 MGD, he
communities still rely exclusively
envisages. Close proximity to an airfield
on wells, but climate change is
comes with other challenges. Clearly the
drying the wells up so in some
height of any construction has to be limited,
areas around Phoenix people
however that’s not too much of a burden for a
have come to rely some or all of w w w. b u s i n e s s c h i e f. c o m
129
EPCOR USA INC. / EPCOR UTILITIES INC.
“When you have lots of small developments and they are not contiguous then it makes sense to have localized treatment” — Andrew Brown, Engineering Director
Full Service Water & Wastewater Contractor Felix Construction Company is a general engineering contractor and construction management company with a specific focus on water production facilities, well sites, booster pump stations, water treatment facilities, wastewater treatment plants, sewage lift stations, storm se water pump stations, electrical instrumentation & controls, and custom industrial control panels. LEARN MORE.
CONTACT David Giannetto, Principal 1326 W. Industrial Dr., Coolidge, AZ 85128 623-435-4314 davidg@felixconstruction.com
www.felixconstruction.com
CONSTRUCTION
131 the time on water brought to them by
seven days a week during daylight
trucks. Around the Anthem community
hours and has two filling points that can
in the northern portion of the Greater
feed trucks at a rate of about 425
Phoenix metropolitan area this
gallons per minute. “This is a standalone
service was indirectly provided by
part of our business,” says Brown. “We
a local municipality but was withdrawn
can’t charge our existing customers, so
in 2017. EPCOR’s response was to
we make a charge to the water haulers
build a water hauling station – to the
to cover the cost of the facility.” The
great relief of these 1,500 residents
water hauling facility illustrates some
when it opened in July 2018.
highly relevant points – among them the
The Desert Hills New River Water
alarming scarcity of water resources in
Station is a location where water
Arizona, the diversity of consumers’
haulers can purchase potable water
circumstances – and the alacrity and
that meets all Federal and State
flexibility with which EPCOR looks for
drinking water standards. It’s open
appropriate solutions. w w w. b u s i n e s s c h i e f. c o m
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