Business Vision Summer 2019

.W O R L D Financing the Future Interconnected World

IP: whose idea is it anyway?

Also in this issue...

Summer 2019

Libra cryptocurrency — born under a bad sign GBP 9.95 | EUR 14.95 | USD 15.95

Mining landfill for gas and profit

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Carbon-free housing

Apprenticeship training programmes

BR EI T LI N G. COM

Letter from the editor INTELLECTUAL property protection is one of those double-edged swords, unsheathed to defend individuals' creativity or to hack away at rival innovations deemed to be too close to the (hopefully patented) original.

But does the “ownership” of ideas have any real merit in a fast-moving, competitive world in which bright minds pondering common problems are likely to alight on similar solutions?

BV contributors John Rapley, Leo Austin et al dip beneath the surface to prod about in the murk to help us form, or possibly change, opinions.

I confess to bearing a bit of a historical grudge here, having come up with a brilliant idea or two of my own over the years. After receiving an initial brush-off (including one from Microsoft, after I optimistically wrote to Bill Gates with one of my brainwaves), I have generally sighed and wondered what to have for lunch.

The irritation sets in when you see your invention being hailed as the Next Big Thing… under someone else's name. Whatever your feelings on the intellectual property conundrum, here's the takeaway message for would-be inventors: persevere, follow-through, and don't give up at the first hurdle.

But persistence can have its downsides too.

Take advertising, as an example. Yes, advertising is a good way to reach customers, and the bigger the platform, the more desirable it is. YouTube's a good one — at least in theory. But Google “getting YouTube without ads” and in milliseconds you have 2,970,000,000 responses to help you. Kindle has released its latest e-reader, the 9 model, which is very attractively priced at £69.99… or £79.99 without ads.

What kind of world is this, where we pay a premium to avoid seeing the ads that companies pay to put in front of us? It's like giving a bad busker a fiver to stop playing. And a win-win for YouTube and Kindle, of course, who presumably pocket the money from the advertisers as well as the extra cash we're willing to pay for ad-free content.

On a lighter note, or perhaps not… workplace issues. Somewhere in these pages you can ponder such problems as power-hungry colleagues who trample us on their way up the ladder, food thieves who pillage the personal items in the communal fridge, and the unspeakable devils who nick our favourite pens.

Also in this Summer issue of BV, the usual profiles of movers and shakers, pioneering companies seeking healthier, more sustainable horizons, inspiring tales of innovation and derringdo, and amusing snippets that we hope will tickle your fancy. One piece that may interest Northern Hemisphere readers in the grip of a vicious Summer is a scientific study that shows women's brains work better at higher temperatures, while men work better when it's cool — explaining the age-old conundrum of the correct setting for the office thermostat.

Are these nit-picking niceties, or valid workplace issues that deserve our attention? A bit of both, probably. Think on these things, and happy reading.

Hal Williams, editor hw@bv.world

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Correspondence Gimme gas!

I live and work in New Zealand — we are freezing here while you are no doubt happily compiling your Summer issue — and I am what we call here a “petrolhead”. I love all things motoring, and while I enjoy Richard Thomas' insights into the development of “clean” electric vehicles and planes, I would appreciate more on the conventional motor industry.

We hear precious little in BV about the advances and innovations of international motoring corporations and the struggles they face with increasingly strict noise and emissions limits — and yet they still manage to provide exciting vehicles.

There have been some interesting inclusions in your motoring section, to be fair, but I — for one — would like to see the motoring section, tucked away at the back, take a more prominent place in your magazine.

Keith Hiller New Plymouth New Zealand

Interesting people When I receive my copy of your magazine I always flick through to read the “10 People” stories before getting stuck into the meatier features. In the Spring issue I found one to be particularly inspiring: the story of the young web and robotics programmer from Ethiopia, Betelhem Dessie. What an amazing childhood she had, and what an example she is setting to young women who may be interested in a tech career, and the STEM subjects in particular. When I was at school there was a campaign called “Women In Science and Engineering”, and although things are improving, there is still a shortage of female representation in these areas. It's always good to see stories like this. Keep it up BV, and well done Dessie!

Jamie Walters Exeter UK

Bloodhound LSR — preparing for high speed testing In response to your Bloodhound article in the Spring issue I thought your readers might be keen to hear the latest news. The Bloodhound Land Speed Record team is making plans to run the Bloodhound LSR car for the first time on its dry lake bed race track at Hakskeen Pan, Northern Cape, South Africa (pictured below), in October 2019.

We successfully tested the car at 200mph during UK runway trials at Cornwall Airport Newquay in October 2017, so the team will be targeting 500 – 600mph (800km/h) – a key milestone on the journey to setting a new world land-speed record.

Since the Bloodhound project's relaunch in March 2019, we have focused on both the logistics of deploying the team and car to a remote corner of the Kalahari Desert and converting it from its runway design to high-speed testing spec. This has included adding the parachute braking system, uprating springs and dampers, adding more air pressure and load sensors, and a fire detection and suppression system.

Follow the project on social media or www.bloodhoundlsr.com Jules Tipler Bloodhound LSR Berkeley, UK

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Rutger Bregman Dutch historian Rutger Bregman (BV Spring) is reported to have denied that economies with high personal taxation fare poorly. I'm afraid he should have looked for a better counter example than the US tax regime in the booming 1950s.

Yes, the highest rate was 91 percent for much of that decade, but the top one percent of earners paid just 42 percent of their income in tax — which is not much more than they would have had to stump-up in recent years.

Check your facts, Mr Bregman, if you are going to stand up and be a little pompous.

Raymond Hildt Burlington US

Editor Hal Williams Assistant Editor Janet Newbury Executive Editor Susan Shaw

.W O R L D Business Vision

Contributors Heather Leah Smith Jason Agnew Nabil Abu El Ata John Rapley Nish Kotecha Stephen Hubble Shaun Shirazian Emma Yearwood David Towlson Leo Austin Gege Gatt Mark Loftus Chris Thompson Aliya Vigor-Robertson Adam Gordon

Distribution Manager Thomas Terrell Subscriptions Max Pragnell Commercial Director Graham Church Publisher David Eyres Business Vision The Lansdowne Building 2 Lansdowne Rd Croydon CR9 2ER, UK Tel: +44 (0)203 745 7671 Fax: +44 (0)203 745 7674 Email: info@bv.world Web: www.bv.world Printed in the UK. All rights reserved.

Pictures Editor , Cover Art and Layout Richard Thomas

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In this issue 16 | Cash flow in five steps

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17 | Managing FX exposure 20 | Blockchain comes of age 22 | Mahindra rising...

26 | Intellectual property 32 | Sharing with the workers

36 | IT's brave new world 42 | Active Re's risk ruses 44 | Gold in them thar dumps 47 | Vakufska's on the ball

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48 | Innovation... and recklessness 51 | Sino-British stock link 52 | The importance of SMEs 56 | Carbon-free housing

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59 | Libra: a bad sign?

60 | CSR and the Halo Effect 63 | Investment blind spot 64 | Brazil's fintech future 66 | Commodity dependence

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Contents

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68 | Dhofar Insurance 70 | Green power winning 72 | KFC welfare moves 73 | Abu Dhabi festival 76 | Bugbears of the office 78 | Oxycontin scandal 79 | Guinea pigs are go

82 | Invest in your staff 84 | Recruitment advice 86 | Ready to jump ship...

87 | Are you VAT compliant?

88 | Health & Safety 90 | Award highlights

56 98

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Business Vision Summer 2018 Issue • www.bv.world

80 | Surrey's bright IDEA

98 | SABRE bares teeth 99 | Rush for tech visas 103 - 110 | BV Motoring

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All about the ‘business killer' cash flow — and five easy steps to avoid the problem

By SHAUN SHIRAZIAN MOST new businesses will fail in their first five years, and the main reason for that is poor cash-flow management.

Almost 60 percent of UK small businesses have experienced cash flow problems, and many — one in seven — have been left unable to pay employees. This means 2.2 million people in the UK may not have been paid on time.

Much of the time, poor cash flow is a result of management teams not fully understanding the importance of cash when settingup. It's all too easy to run out.

The top five tips to avoid the cash flow curse:

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1. Be meticulous about invoicing Late payments are the bane of small businesses and freelancers across the world. Businesses that succeed are usually the ones that are scrupulous about chasing down every last invoice.

Persistence is key. Invoices should be sent quickly, and payment terms must be clarified from the beginning of every relationship.

There are digital solutions that make invoicing easier to track, such as apps which keep all invoices in one place, and tell you when suppliers should pay you.

2. Constantly re-evaluate business plans Planning must be a perennial process and keeping on top of your business progress is the only way to plan effective financing, and to know whether unexpected costs are par for the course. Keep a monthly forecast of finances, business goals and potential problems. It is also worth keeping

Shaun Shirazian compiled these five cash-flow tips abreast of the news. Having an idea of the current business world will give an indication of market conditions, and how issues can be withstood.

3. Digitalise processes that are non-central to the business A recent study found that over half of UK small business owners still run manual calculations in programmes such as Excel to track their business's bill payments. This puts finances at risk of human error, especially when they are calculated by time-strapped small business owners hurrying to get back to the business at hand. Apps and software can help to keep all your finances in one place, and this information can be shared with your accountant for easy tracking and filing of tax. Leveraging your consultative relationship with your accountant to help provide templates, financial analysis and insight into macro-trends leaves you free to focus on your business.

4. Communication is king Negotiating with suppliers, vendors, clients and customers is

an integral part of every business.

Transparency and honesty must be a part of all dealings, and it's great if you are able to keep things light and friendly. If you find yourself going through difficult times, you might rely on friendly suppliers and vendors.

5. Consider financing It is vital to catch cash flow problems early to stop them spiralling out of control.

Procuring financing from a small business lender can be a good way of getting a much-needed cash boost. Never bury your head in the sand when it comes to finances.

Taking these simple steps will allow you to free-up time to improve your productivity at work, and mitigate cash flow issues before they happen. Remember, you started your business to do what you love, not fret over financial issues. * Shaun Shirazian is the UK head of product at Intuit QuickBooks UK

Managing currency exposure Five practices your business should be employing Being able to see the future is always useful, and a currency strategy and ability to accurately forecast are critical for businesses. STEPHEN HUBBLE explains.

1) Simplify your bank account structure. Adopt account structures that match your business flows and reduce the number of accounts you have.

Today's technology allows you to hold just one multi-currency account to provide you with tailored reporting options to view specific business activities and transactions in real time.

2) Free up your time and liquidity through automation. If you hold cash in different currency accounts, you may be exposing your business to increased risk of currency fluctuations. Multicurrency accounts give real-time visibility and control of finances in one place.

Foreign exchange is no longer a separate task, but embedded into the end-to-end treasury management process and integrated within your bank account structure, helping you to eliminate any idle currencies and reduce aggregate exposure to foreign exchange volatility.

Another way automation can help is through direct integration of your accountancy software — Xero, Sage or QuickBooks — with banking or fintech platforms. This arrangement will help you better understand your treasury data and streamline cash flows in different currencies.

3) Break down treasury costs: Understand what fees you pay, and when. Many traditional FX providers charge hidden costs.

It is also worth reviewing your business travel expenditure and credit card costs.

Hefty FX charges and admin processing fees apply when using them abroad, up to five percent of the transaction value.

Prepaid multi-currency cards are secure and accepted pretty much anywhere, allowing you to hold a number of currencies. They often come with an app, enabling you to track and reconcile spending in real time.

4) Maximise your use of hedging tools. In addition to a multi-currency account, forward contracts are useful. They enable you to lock in an exchange rate in your preferred currency for up to two years, which can be used for future purchases. Typically, forward contracts require a securitisation deposit of two to five

percent, which doesn't tie up your cash flow and gives you certainty in the medium to long term. Set a realistic internal target currency rate when budgeting, and analyse the current market conditions to gauge potential fluctuations and their impact on your profit margin. Remember, markets move down as well as up. Give yourself flexibility by hedging a proportion – maybe 50 percent of what you think you may need — to take advantage of rising rates.

5) Almost a third of businesses surveyed still believe high-street banks offer a competitive exchange rate, and nearly a quarter do not consider specialist fintech companies as a cheaper alternative. Technology can streamline payments in an economic way. For example, automated currency rate tracking helps you obtain realtime quotations, allowing you to respond instantaneously to currency market moves.

And AI and machine-learning in the forecasting process can play a part in mitigating FX risks by helping explore different scenarios and stress-testing your exposure to currency volatility. * Stephen Hubble is chief analyst at treasury management firm Centtrip.

Business Vision Summer 2019 Issue • www.bv.world

WHEN looking to protect against currency fluctuations, forecasting exchange rates is never an exact science, especially in the light of Brexit, trade tensions and a global economic slowdown. In times of uncertainty, there are actions you can take to reduce the risks.

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Noordin Kasoma

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UGANDAN entrepreneur Noordin Kasoma has hit international headlines recently for his bamboo bicycle frames.

This is a coup not for public relations skills and hype but — unusually in this day and age — solely for the product. Kasoma began Boogali Bikes by “cycle recycling” — replacing broken steel or aluminium bike frames with bamboo. Bamboo is strong, light, comfortable and sustainable, and Kasoma soon had a niche market to himself.

He learned his trade by training with American bike frame designer and manufacturer, Craig Calfee; he's also a graduate of “YouTube uni”, watching tutorials online. Kasoma's hand-made bike frames were quickly recognised as an affordable and green alternative to expensive mass-produced frames.

The name Boogaali comes from the second half of the word ‘‘bamboo'', coupled with the Ugandan word for bike, ‘‘gaali''. It has a nice ring to it, and Kasoma's creations are becoming a must-have in cities around the world.

Kasoma believes bamboo is a perfect plant: renewable, environmentally friendly, available and easy to work. He uses a bark cloth – another natural product — coated in resin to make strong joints.

Boogaali frames are tailor-made to customers' specifications, taking expected use and the person's weight into account. Kasoma can make bikes for road, adventure touring, off-road or gravel use. The frames have undeniable beauty, and — while the modest Kasoma feels the need to justify his prices by pointing out the level of craftsmanship — in comparison with regular frames, they aren't expensive at $350 to $500 each.

Boogaali Bikes are shipped to Europe and the US, and the company has a website featuring its products.

The bikes have been tested in the 900km Ride For Hope around Lake Victoria. The 26 gravel models handled the rough and technical course without a single breakdown.

Kasoma is looking to expand his company. Investors, queue up here…

PEOPLE

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Greta Thunberg

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“WISDOM oft comes from the mouths of babes,” quoth George RR Martin (who was paraphrasing The Bible) — and 16-year-old climate activist Greta Thunberg certainly has wisdom to share.

The Swedish teen first heard of global warming at the age of eight, and was shocked to learn that humans were changing the Earth's climate. But what most affected Thunberg was the lack of concern from world leaders. “If burning fossil fuels was so bad that it threatened our very existence, how could we just continue like before?” she wondered. “To me that did not add up, it was too unreal.”

You're not alone there, Greta. But the realisation hit her hard, and at age 11, she sank into depression, and stopped eating. She was diagnosed with Asperger's syndrome, OCD, and selective mutism.

“That basically means I only speak when I think it is necessary,” she explained. “Now is one of those moments.

“Maybe you are simply not mature enough to tell it like it is, because even that burden you leave to us children. We become the bad guys who have to tell people these uncomfortable things, because no one else wants to.”

With her protest and her impassioned words, Thunberg planted the seeds for a movement that has taken root the world over. She supports climate change activism through the Fridays For Future movement.

Thunberg warns of a tipping point that's rapidly approaching — and from which there's no return. “Today we use 100 million barrels of oil every single day,” she says. “There are no rules to keep that oil in the ground, so we can't save the world by playing by the rules.”

Her own strict rules about sustainability limit her speaking arrangements; she won't travel by air. But her convictions have won her a lot of recognition and international goodwill. When she wanted to attend the UN Climate Action Summit in New York and the COP25 in Santiago, she was invited to hitch a ride on 18-metre yacht (fitted with solar panels and underwater turbines) to sail — emissions-free — across the Atlantic.

She has won enemies as well as friends, but refuses to back down. “What is the point of learning facts when the most important facts clearly mean nothing to our society?”

Thunberg is putting the World's leaders on alert, to tell them “change is coming whether they like it or not”.

“The people will rise to the challenge,” she says. “And since our leaders are behaving like children, we will have to take the responsibility they should have taken long ago.”

Business Vision Summer 2019 Issue • www.bv.world

PEOPLE

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Blockchain's coming of age in the world of enterprise

By NISH KOTECHA AT THE recent Business Blockchain Summit in London, Dale Chrystie, FedEx's blockchain strategist, invoked the words of FedEx founder Frederick W Smith: “In business, there are no prizes for coming second.”

Staying ahead requires innovation, and today, enterprises are flooded with cloud-based technology to replace increasingly obsolete legacy systems. Start-ups and technology giants are leading the charge with ideas built around AI, machine-learning, IoT and —

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Welcome to the future — Industry 4.0 of course — blockchain.

Welcome to industry 4.0, and the smart factory of the future.

Blockchain is the bridge between the sensors that track the movement of products along

manufacturing and supply chains (IoT) and analyse the resulting data. These are the data that will inform the manufacture and movement of products tomorrow.

Data are the feed-stock of tomorrow's factories; blockchain is the technology for data, the accuracy and security of which are crucial.

Most trading organisations are active in two supply chains: physical and financial. The financial supply chain has the advantage of being digital, while the physical one remains

Spanish energy company Repsol was a customer and is now an investor in Finboot

* Nish Kotecha is chairman and co-founder of Finboot.

Blockchain Revolution Global Dale Chrystie (left) of FedEx, with Mahesh Sahasranaman, of UPS, and Eugene Laney, of DHL, at a Blockchain Revolution Global event.

Business Vision Summer 2019 Issue • www.bv.world

analogue and significantly slower.

According to IBM and Maersk, 25 percent of containers, carrying about 80 percent of goods used by consumers each day, are on average late by one to three days.

The administration cost of moving goods around is about 20 percent of the cost. A majority of executives in large enterprises consider blockchain to be one of their key strategic opportunities in the next 12-24 months, particularly in their supply chain / sustainability.

Repsol's investment in Finboot proves this point. As a customer, Repsol was well placed to see at first-hand the opportunities presented by blockchain.

MARCO, Finboot's flagship product, allows enterprises to access and use blockchain infrastructure technologies within their organisations through a “blockchain-agnostic” SaaS delivery model.

LONG TERM VALUE In blockchain it is important to take the lead. Its long-term value proposition rests on widescale adoption by all stakeholders, starting internally to improve workflows, then moving externally to bring everyone on-board, from manufacturers and distributors to the end user.

Repsol's integration of the MARCO platform followed these steps. First, into laboratories to track and trace the product through its lifecycle, changing characteristics to meet its customer requirements. The product enabled the integration at all touch points, and ROI can be identified. Repsol estimates that the improved implementation in internal workflows could save about €400k per annum.

Blockchain technology is coming of age in the enterprise world. Private blockchains to replace costly, complex and inefficient legacy systems seem set to continue to be a central theme of business transformation.

Nish Kotecha: blockchain is a key strategic opportunity

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Indian corporate giant proves that ethics and success ‘are not mutually exclusive' In a world where the public at large is increasingly disenchanted and sceptical of corporate business models, the Mahindra Group proves that following business ethics is not only compatible with consistent business performance, it is essential to the process THE STORY of the India-based Mahindra Group, a $20.7bn global federation of companies with a presence in over 100 countries, and employing more than 200,000 people, has many enviable facets.

This is a story of entrepreneurial spirit, about how a couple of young entrepreneurs emerging from a young, newly independent India, with not much more than hope in their

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hearts and a gleam in their eyes, set up the foundation for a vast business group. Its interests range from automobiles to agriculture, aerospace to aftermarket, farm equipment to financial services, retail to real estate, speedboats to steel processing, renewable energy to IT, housing to holiday resorts, logistics to defence — and more.

It is a story of outstanding and consistent business performance

and stakeholder returns sustained over seven-plus decades, and doing business that is socially relevant in a responsible and ethical manner. The group points to its focus on the farm business, on alternate energy, on affordable housing, as examples of this business philosophy at work.

While these are impressive achievements, the aspect that the group feels is “inspirational” is the high corporate governance

Its interests range from automobiles to agriculture — and many other sectors

standards practised across the Mahindra Group.

S.Durgashankar (pictured right), president Group Mergers and Acquisitions, Corporate Accounts and Group Secretarial, and Member of the Group Executive Board, says: “At the Mahindra Group high standards of Corporate Governance are a way of life. While the world is focused on the three Ps — Planet, People and Profit — we, at the Mahindra Group, believe that there is an equally important fourth P — namely the Process of strong governance standards.

“For us Planet and People are the Purpose providing the reason why we do business, and Profits

and Process (governance) are indicative of how we do business at the Mahindra Group.

“We now live in a world plagued by scams where we are constantly bombarded with news regarding the lack of morality of

those in public life. This has led to the unfortunate situation where the public at large views corporate morality with plenty of scepticism.

“Now, more than ever, it is critical to demonstrate that the words ‘ethics' and ‘profits' are not mutually exclusive. We, at the Mahindra Group, take immense pride in the fact that the group focuses on socially relevant businesses, in a responsible manner, with complete adherence to the highest principles of governance, and has provided consistent and outstanding returns to our stakeholders over decades.

“In an increasingly materialistic world where making profit takes

Business Vision Summer 2019 Issue • www.bv.world

Mahindra Group employs more than 200,000 people

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Mahndra Group is a global federation of companies with a presence in over 100 countries

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precedence over the manner in which such profit is obtained, it is important to have role models that prove that following the ‘right means' would lead to the ‘right end'. This is an important lesson that is the need of the hour for the corporate world.

“It was Wilhelm Reich who famously said ‘You think the end justifies the means, however vile.

I tell you: the end is the means by which you achieve it. Today's step is tomorrow's life. Great ends cannot be obtained by base means'.

“The revered Mahatma Gandhi once implored: ‘Will you still say that the means do not matter?' The inordinate emphasis in society for the acquisition of material gains, across the world, has led to the sorry situation where financial success is considered to be the ‘be-all and end-all' — and indeed the very purpose of life itself — leading to such success being sought after, at any cost, thereby relegating the rule of law and sense of fair play to the societal dustbin.”

Durgashankar said the foundations of a society are built on the principles of adherence to law and fair play. “Rampant disregard for these principles would result in the institutional

pillars losing their credibility in society at large and would rip apart the very fabric of society,”

‘We celebrate the stories of success’ he said.

“In order for society to regain its respect for the law and sense of fair play, and for social and corporate institutions to regain their credibility, it is crucial that we celebrate the stories of success where such success is achieved with scrupulous adherence to the principles of law and fair play.

“This is why the inspirational story of the Mahindra Group offers hope that achieving material success is possible even while scrupulously treading the path of strong Governance practices.”

On the question of Compliance versus Governance, Durgashankar said: “Though compliance is an essential ingredient for good governance, there are distinct differences between the

two. Compliance is all about performing the act of complying with the laws and regulations of the land, and by its very nature is transactional and action oriented.

While needing to be executed across the company it needs to get much more focus at the bottom of the organisational pyramid.

“On the other hand, governance is more a strategic thought process and needs to be exercised at all the key decision points across the organisational structure, and hence resembles an inverted pyramid, with greater emphasis at the top rather than at the bottom of the structure.

“In a sense, compliance is an act whereas governance, which includes compliance in its fold, is a strategic thought process. These differences need to be understood and appreciated in order for this to be effectively deployed across an organisation.”

Elaborating on the principles of governance practiced by the group, he said: “We believe that good governance is founded on three basic principles, which we call the three Cs - i) Competence II) Compliance mindset and iii) Conflict eradication.

“In the group, it is ensured that all key decision-making points are manned by individuals who are

Wall Street is only now waking up small or big. This is an aspect which is demonstrated more by action than words. Mahindra Group leaders inculcate this aspect across the group, leading by example. The group employs IT enabled tools, in real time, to track and ensure compliance.

A home-grown e-tool called the Mahindra Governance e-cockpit is at the core of this practice.

“The third C is about eradication of Conflict in decision making. This is a crucial aspect of governance. Many of the governance breaches in the corporate world stem from a conflict of interest.

“The Mahindra Group has rigorous processes to ensure that conflicts in decision making, both personal and professional, are avoided at all key decision

points. For this purpose, the group deploys various tools and techniques, ranging from disclosure of interest to a recusal from decision making, all of which, deployed diligently, and as appropriate, ensure adherence to the third C. “There are various examples of how the group has set up industry leading practices in the area of compliance and governance and practises them, in many cases, years ahead of the law evolving to mandate them.”

Wall Street is only now waking up to the fact that profits divorced from governance are not sustainable over the long term. But at the Mahindra Group this realisation has been at the core of its business philosophy from its inception in 1945, says Durgashankar.

“This is why the story of the Mahindra Group, which is focused on socially relevant businesses, scrupulously following good governance practices and still being hugely successful in terms of size, profits and stakeholder returns, sustained over long periods of time, is an inspiration to the corporate world,” he said.

Business Vision Summer 2019 Issue • www.bv.world

competent to do that job and can take the required decisions.

“In addition, they do so with an intent to comply with all the laws of the land, both in letter and spirit, and who are not conflicted in any manner, personal or professional, from taking those decisions. In corporate or public life, installing competent individuals, to take decisions with a compliance orientation, devoid of any conflict of interests, is at the core of all good governance practices.”

This is how the group explains the three Cs: “The first C of Competence is ensured through a rigorous HR process where favouritism or nepotism are eschewed in favour of individual merit which is the only criteria in determining the right candidates for various decision-making positions. This enables effective decision-making at key decision points and ensures adherence to the first C. “The second C is about taking decisions with a mindset of Compliance. This is a cultural aspect where zero tolerance is prescribed and practiced for all acts of non-compliance, whether

Success is achieved with scrupulous adherence to the principles of law and fair play

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Intellectual property: Let me Is sharing caring … or did someone steal your idea?

Intellectual property protection has been hailed as both saviour and destroying angel of innovative advancement. JOHN RAPLEY, faculty member of St Edmund’s College, Cambridge, wrote this piece for BV. WE OFTEN think of intellectual creation as the lonely work of genius – Thomas Edison's onepart inspiration and 99 parts perspiration.

The writer or artist working by dim light in his garret, the scientist staying up late in her laboratory, the game-designer soldiering away in his mother's basement: all of them opt for a life of penury and hardship because they know that if they pull off what they think they can pull off, a rich payday awaits.

The Austrian School of Economics enshrined this vision of the entrepreneur-as- hero and used it to justify the inequality of a capitalist society. They argued that if we taxed the innovator for his success, he wouldn't innovate but would turn his energies to less ambitious pursuits. More generally, the principle that intellectual property rights prompt innovation has become canonical in economics. The basic idea is that the returns on property should come to the owner of that property, and this extends to

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Martin Shkreli

Thomas Edison intellectual property as well. If ownership is ill-defined, nobody will have an interest in developing the property or augmenting its productivity.

That's why even in cases where property-owners abuse their rights in a socially harmful manner — when Martin Shkreli jacked up prices on AIDS and cancer drugs, for example — mainstream economists will often take a Voltairean “disapprove of what you do but defend to the death your right to do it” stance. For them, the cost of saving a few lives by regulating Shkreli's behaviour would have been a slow pace of future pharmaceutical research.

And that would cost even more lives in the long run.

It's like the 11th Commandment for the modern economy: “If you made it, it's yours, and all its fruits will be added unto you.” But is it true?

As with many things in economic theory, the belief may owe more to faith than to facts.

In reality, intellectual-property

protection doesn't appear to play the dominant motivating role in much — possibly most — research.

Empirical studies on the topic yield a surprisingly muddy picture.

Recent scholarship on innovation and creativity has identified the key role of knowledge-clusters.

These are urban spaces that bring together universities, government and private companies such that the knowledge generated by each flows freely across boundaries.

From clubs to conferences to cocktails, creative professionals meet and share ideas, with the cross-fertilisation stimulating their inventiveness.

Growing awareness of the role such clusters play in the process of innovation has given rise to a literature on the “smart city”. This advocates urban planning that facilitates and encourages the free flow of knowledge across sectors.

Whatever one wants to make of smart-city blueprints, the logic is undeniable.

To paraphrase Warren Buffett, had Steve Jobs been plonked down in a Bengali village rather than Silicon Valley, he wouldn't have created Apple. The environment in which he lived made possible

Warren Buffett

have your thoughts on this

the realisation of his potential.

It isn't a particularly novel insight. Nearly a thousand years ago, Bernard de Chartres likened intellectual progress to “standing on the shoulders of giants”, an adage repeated in varying forms by many others and given perhaps its most famous expression by Isaac Newton. More recently, the creation of new products and processes has been accelerated by government-sponsored research, much of which is military.

Whatever you make of Mark Zuckerberg, Facebook would never have got off the ground had not a government scientist conceived the Arpanet decades before.

Indeed, the Cold War arms race that gave us the Arpanet produced a bumper crop of government-funded research that Steve Jurvetson via Wikimedia Commons

Steve Jobs

Arto Jousi via Wikimedia Commons Yuri Gagarin private buyers, or to outsource its research to private companies.

Military advances did not translate into private gains, as happened with Pentagon-funded research like the Arpanet. It didn't matter that individuals didn't own their inventions, it mattered that those inventions didn't get shared.

That fact sheds light on the benefits and drawbacks of intellectual-property protection.

One study of the campaign to sequence the human genome, for instance, found that publicly funded, openly shared research led to more outputs than privately held, patent-protected research.

Liberals stress this collective role in knowledge-production to justify taxing and regulating private companies, since it amounts to no more than the community taking back its share of the fruits

John F Kennedy

Business Vision Summer 2019 Issue • www.bv.world

Isaac Newton

later made its way into our homes.

The 50th anniversary of the Moon landing — an event which capped a race that had been motivated by little more than a wish to beat the Soviets at a game in which they'd got a head-start — has offered a useful moment to reflect on the technological legacies of the era.

Start with the GPS systems in our mobile phones and continue all the way to the miniaturisation and satellites that made those phones possible, but the space age spread to us all. Facebook and the iPhone are mere footnotes in this drama.

And that tells us a lot about technological change. In its heyday, the Soviet Union — where the state owned all patent rights and inventors drew a salary — outperformed the United States in some areas of research and innovation. In the race to the Moon, the Soviets were quick out of the blocks, putting the first satellite, and then the first man, into space. Within weeks of Yuri Gagarin's orbit around the earth, President John F Kennedy convened a meeting at the White House to decide how America would respond to this humiliation.

The result was a programme to put an American on the Moon. Over the coming years, the US would spend the modern equivalent of $300bn to claim the prize. The rest is history.

Given that the race was between rival nations, with each committing vast resources to scientific development, the problem was not that Soviet patent laws slowed progress. Rather, it appears to have been that the command economy inhibited the spread of the resulting knowledge. Unlike in the US, the Soviet military-industrial complex funding the research had no incentive to sell its technology to

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of knowledge-creation. “Taking back” to fund more research (and the creation of knowledgeexchanges that can perpetuate new ideas) helps to maintain the innovative process.

There is an argument that over-generous patent protection may slow, rather than speed, the creation of new ideas. When you look at the history of ideas, and especially the explosion of innovation that made possible the massive development of the past two centuries, it's hard to make a compelling case that patent protection has played a significant role.

Economists will often say that the greatest inventions of the industrial age took place mostly in its early decades, the transformative impact of the telegraph far surpassing anything the Internet might ever achieve. But while it is a given in institutional economics that the development of patent laws stimulated the technological breakthroughs of the Industrial Revolution, the evidence suggests it may have played a modest role in the era's seismic changes. Patent protection at the time was rather limited, and often not used at all.

Inventors often freely shared their ideas (or had them appropriated and commercialised).

And here's a dirty little secret.

Although the US today spearheads efforts to enforce protection of intellectual property — this being a theme of the Trump administration's ongoing battle with the Chinese — America's industrial revolution arose largely out of industrial espionage. It was a common strategy for 19th Century American manufacturers to send agents to work in British firms for a time. Embedded there, they took copious (and furtive) notes about the processes they were operating, before returning home to replicate them.

Today, at a time when most inventions are rapidly patented, there's still little evidence that patent protection does all that much to encourage innovation.

Many economists decry the enthusiastic pursuit of patent protection among modern firms.

They argue that not only does lobbying to extend or enforce intellectual-property protection inhibit its spread, it actually diverts corporate budgets from the more essential task of research and development.

Besides, when you think about it — and anyone reading an article like this is qualified to do just that — the portrait of the individual genius that opened this feature doesn't really depict the way most

creative people function. Sure, getting a pecuniary reward for developing a new technology, writing a book or composing a song is a nice reward. But even without the lure of money, writers or curious problem-solvers are unlikely to forego keeping that journal, or running those experiments. Our ancestors were inventing from the time they learned to walk, even if all it did was satisfy their curiosity.

Most economists will say that all things being equal — and economists love all things to be equal — it is better to have some intellectual-property protection than none at all. But in itself, it seems to do little to spur innovation and new thinking, and turning it into a cardinal rule may have the perverse effect of slowing progress. * Dr John Rapley is a writer, academic and lecturer who works at the Centre for Development Studies, Cambridge University.

He has 25 years' experience as a university lecturer, developed and ran the Caribbean Policy Research Institute think-tank in Jamaica, and is widely recognised as an innovator in pedagogy. His written work has been widely published; this is his first feature for BV.

The US spent the modern equivalent of $300bn to put a man on the Moon

The IP man cometh: China bows to international will

OF THE US's three big trade war demands — intellectual property (IP) protection, market access and ending subsidies – IP is the one that is most likely to happen.

And it's in China's best interests to get it right.

The Chinese have always feared the middle-income trap — the risk of becoming a processing house and little more. They cite the example of Thailand, the “Detroit of Asia”, the 12th largest auto-manufacturing hub in the world. But the brands and technology are foreign-owned — and Thailand ranks a lowly 81st in GDP per capita.

China wants to access and control the heights of technology.

Read the plan for Made In China 2025 — the industrialisation strategy which caused such concern, and viewed by many as

a threat to global trade. China intends to massively raise domestic content in fields like IT, robotics, aerospace, maritime equipment, rail, alternative-energy vehicles, power, pharmaceuticals, and agriculture.

In 2017, the Chinese filed 1.3m patents, 6.4m trademark applications and 860,000 industrial designs. They believe in IP. To date, China's investment in core science hasn't worked well enough. Analysis by the Conference Board has shown that while intangible investment in China tripled as a share of gross value added from 1995 to 2016 — the same level of investment in the US would have garnered around triple the return in output per person.

The country has been plagued

by an inefficient state sector and politically directed lending. Stateowned enterprises still captured 82 percent of all bank loans in 2018.

That will improve.

More than five million Chinese citizens have studied abroad, and some three million of them have returned home. According to the Chinese job site Liepin, 75 percent of all employees in the Chinese internet industry in 2017 were educated abroad. The cumulative breadth and weight of learning has now already passed the tipping point, where local groups can come together and innovate without foreign help.

In the early days, it was much more efficient to copy than to innovate. In a country where the past was poor and the future was everything, why would they do

Business Vision Summer 2019 Issue • www.bv.world

East is east and West is west, and our man in the middle, businessman LEO AUSTIN — UK-based but with decades of experience in China — compares cultural attitudes to intellectual property protection

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anything else? All an entrepreneur needed was the resources — and these could be found in the deep pockets of local officials and state banks. They innovated through scale — applying those resources at a rate never tried before, and achieving costs never seen before.

Then came the eCommerce revolution, and the Chinese found that the highest returns came through new business models, not through protectable

IP. Models can't be effectively defended through legal means, so China-speed competition was invented as a defensive tool.

Now China wants to invest at the top of the research chain.

Once Huawei was excluded from the Android ecosystem, it boosted investment in an immense project to develop its own operating system. It expects to license it wherever it can as a direct competitor to Google.

THREE STRIPES AND YOU'RE NOT OUT: ADIDAS LOSES BID TO BE ‘SHOE-NIQUE'

ADIDAS has failed to expand its trademark three-stripe design in Europe because it isn't distinctive enough.

The famous three-stripe logo was registered by Adidas's founder, Adolf “Adi” Dassler in 1949, but general court of the EU ruled it was not sufficient to identify the brand's products.

The ruling is part of a dispute between German Adidas and Belgian company Shoe Branding Europe.

In 2014, Adidas was granted a trademark for its three, “parallel equidistant stripes of identical width”. The stripes could be applied on clothing, hats and shoes, and in any direction. In 2016, Shoe Branding Europe went to the EU intellectual property office and applied for the trademark to be annulled.

Trademark lawyer Mark Caddle said Adidas failed to provide evidence that consumers 30

automatically associated the stripes with Adidas.

Adidas may appeal the decision at the European court of justice, and said in a statement: “This ruling is limited to this particular execution of the three-stripe mark and does not impact on the broad scope of protection that Adidas has on its well-known three-stripe mark in various forms in Europe.”

Intellectual property experts have downplayed the importance of the decision.

David Stone, head of intellectual property at the law firm Allen & Overy, told The Guardian that said the invalidation “won't make much practical difference on the street” as Adidas had trademarks on the three-stripe logo in various specific positions.

He said, however, that the case “highlighted the challenge” for well-known brands trying to gain protection across the EU.

Many other Chinese companies are trying to “own” IP across their industry chains, but none of that will be worth anything if it can just be stolen and exploited by others.

Mainland China looks to the example set by Taiwan across the strait. In the 1970s and ‘80s, Taiwan had huge rates of IP infringement; so much so that it was dubbed the “Pirate Kingdom”

by US businesses.

It was a processing economy, famous for light industry and leather. By 1989, the US Special Trade Representative put it on the Special 301 Priority Watch List for failure to protect US intellectual property rights, and prevented its entry into GATT, the predecessor to the World Trade Organisation.

By 1996 it was off the list after enforcing IP legislation, and over the next 20 years it built a research-driven economy led by global giants like Acer, TSMC and HTC. IP Protection provided a huge boost to economic growth and a massive industrial upgrade.

Taiwan would have collapsed otherwise, as its light industry moved to China in search of low wages — just as it is now moving again to Vietnam and South East Asia.

Mainland China knows this, and want the same.

The Chinese court system can work for IP protection, but it's still not easy. Discovery is too hard, damages have been too low.

Yet there are now 18 IP tribunals around the country, and the Chinese are suing each other in record numbers.

The Shanghai IP court had completed almost 6,000 cases by mid-2018. It awarded France's Dassault Systemes $2.2m in damages last year in a case against a Chinese rival.

There is hope yet. * Leo Austin is a UK-based businessman who lived and worked in China for 22 years.

He is now senior advisor to The Conference Board China Centre.

He can be reached at leoaustin@ gmail.com

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Employee share ownership: a ‘funny feeling' for generous boss Richer as he humbly joins his own workforce

By RICHARD THOMAS THE ISSUE of share ownership for employees recently hit the UK headlines when Julian Richer announced he was handing 60 percent of his company, Richer Sounds, to his staff.

The business, founded by Richer in 1978, is a UK chain of small hi-fi and TV stores with a reputation for quality equipment, bargain prices, and knowledgeable staff. Its more than 500 employees will get shares worth £1,000 for each year they have worked with the company.

One lucky, loyal employee will receive a cool £40,000 The average pay-out will be £8,000, and one lucky, loyal employee will receive a cool £40,000.

The shares in the company are held in an Employee Ownership Trust (EOT), a legal structure which buys the original owners' shares using company profits and holds them on behalf of the employees. The concept was introduced in the UK's Finance Act of 2014.

But there have been companies owned by their employees since long before the Finance Act of 2014. Probably the most famous in the UK is John Lewis, the company behind the eponymous department stores and Waitrose Mick Atkins / Shutterstock.com

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Richer told the BBC after the announcement, ‘There were a lot of happy people yesterday’

Ardfern via Wikimedia Commons Richer Sounds is a UK chain of small hi-fi and TV stores ownership are structured as S Corporation ESOPs – these were established by Congress in 1988 to give more American workers the opportunity to have equity in the companies where they work.

Examples include supermarket chains, a brewery, and a chain of photographic studios. Companies that are partly employee-owned include big names like Southwest Airlines, Microsoft, Starbucks, Intel and PeopleSoft.

And there are other benefits to moving to employee ownership.

Richer Sounds donates 15 percent of its profits to charity, and the company also owns 12 holiday properties which are available for use by employees. In addition,

Richer told the BBC after the announcement that giving loyal employees this windfall was the right thing to do. “There were a lot of happy people yesterday.”

Richter doesn't have heirs, and setting up a trust to hold the business on behalf of employees was written into his will in 2003.

At the age of 60, he decided that it was time to pass ownership on, although he will remain deeply involved in the company's affairs — as an employee, rather than as owner.

As he told the BBC: “On Monday, I was handed an employment contract, and had a little chat about the hours I will be working. It was a funny feeling.”

Business Vision Summer 2019 Issue • www.bv.world

supermarkets. John Lewis has been 100 percent owned by its staff (known in-house as “partners”) since 1950.

Another firm following this example is the engineering company Arup.

In a 2017 article for the Institute Of Directors, the chairman of the Employee Share Ownership Centre, Malcolm Hurlston, wrote about the benefits of employee share ownership.

For one thing, employees have a vested interest in ensuring the company's success. They are more motivated and committed, and companies show increased productivity and performance as a result. The company is seen as a more attractive employer, and is able to attract the cream of new talent.

TAX ADVANTAGES There are also tax advantages — for employer and employee.

The EOT arrangement includes an exemption from Capital Gains Tax (CGT) for the company owner if at least half of the business is sold. Employees also pay no tax on bonuses paid as shares in this way.

The UK's Employee Ownership Association published a report in 2018, The Ownership Dividend, the result of an inquiry into the state of employee ownership across the United Kingdom. Its core recommendations were increased government investment, pilot schemes to increase awareness and interest amongst business owners, and a national strategy for business ownership. In support of the first recommendation, it noted that the governments of Scotland and Wales have already invested in employee ownership — and Scotland has seen a tenfold return on its investment.

In the US, the first legal framework for employee share ( or “stock”, in the US) ownership, the Employee Stock Ownership Plan (ESOP) was put into place in 1974 via the Employee Retirement Income Security Act (ERISA). Today, most private US companies with employee

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Keabetswe PhekoMoshagane

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BARCLAYS Botswana CEO Keabetswe Pheko-Moshagane is a pioneer: the first female Motswana (Botswana citizen) to be appointed to the role.

“Our journey is a unique and exciting one,” she says of her career and goals, “and we want to ensure that our colleagues and stakeholders are actively engaged. We focus on ensuring that our customer experience is seamless and that we exceed all expectations while landing our new brand.

“We believe that through our passionate and dedicated employees, we will bring our customers' possibilities to life while delivering a digitally-led bank that is fit for the future.”

Pheko-Moshagane has overcome some hurdles in her time at the top, but her positive attitude has stood her in good stead.

“There are always challenges that one faces as a leader,” she says, “but my philosophy is that challenges are there to be overcome. One has to adopt one of nature's characteristics and flow like a river: above, beneath or parallel to the challenge.”

Pheko-Moshagane joined Barclays Bank of Botswana in 2010 as the head of core banking applications, and took on the role as CEO in 2019.

She has more than 10 years' banking experience and expertise in the telecommunication industry from previous roles. Prior to joining Barclays she worked for Falcorp Technologies in South Africa as consultant for various organisations in the telecom and banking industries.

Pheko-Moshagane was first appointed head of technology at the bank, overseeing the execution of projects, programmes and initiatives. She was then promoted to COO, and has been instrumental in driving transformational and cost-saving initiatives.

She brings a wealth of banking and leadership experience to the role. She has a Bachelor of Administration in Information Technology, specialising in IT Management, and Business Applications from Tshwane University of Technology.

She has attended a Management Development Programme at Stellenbosch, and a Chief Operating Officer Excellence Programme. She also recently completed her Master's in Business Administration (MBA) with Mancosa distance education.

“Our people are our strength” is a Barclays motto, and important to Pheko-Moshagane.

“We realise that our colleagues are the most important aspect of the realisation of the bank's strategy. We strive to ensure that our end-to-end talent management value proposition is all inclusive, and geared towards engaging, motivating and retaining staff at the bank.”

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Marcin Kleczynski

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THE BBC's weekly The Boss series recently profiled Marcin Kleczynski, CEO and co-founder of antivirus software company Malwarebytes.

Kleczynski — like many software entrepreneurs — began working on his business from his student digs. He was just 18 in 2008, a student at the University of Illinois, when he started to gain traction in the cyber security world.

A life highlight came when, still a teenager, he was analysing a virus on his computer at university. He was banned from the network because of the virus, and when an IT guy came to “fix” it… he downloaded Malwarebytes, before Kleczynski's eyes.

“I didn't say anything,” he told the BBC. “I stood behind him and watched him fix my computer with my software to get me back online. He left never knowing who I was.”

He graduated with a degree in computer science in 2012, and by then he hardly needed the qualification; his company was already earning millions of dollars each year. The company now has an annual turnover of more than $126m.

Kleczynski was born in Poland, but his family migrated and settled in Chicago when he was three. He was obsessed with online gaming, and got a computer virus in his early teens. Using the internet and textbooks, he solved the problem, and — unwittingly — took his first steps towards his successful career.

Malwarebytes was officially launched in 2008 and quickly grew.

The company now has more than 750 employees, and offices in Ireland, Singapore and Estonia. Since 2014 it has secured $80m of investment funding, performs 187 million virus scans every month, and is installed 247,000 times every day.

Now 29, Kleczynski says his youth has been an advantage in is career. He encourages teen entrepreneurs to start their own business early.

“If you're in college now, instead of going out and getting drunk with your friends, maybe take one night a week just to see if there's anything you want to work on personally,” he advised.

And while his social life may have suffered while pursuing his dream, he did meet his future wife at university…

Business Vision Summer 2019 Issue • www.bv.world

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Brave new world: more than a fifth of UK jobs likely to be taken over by computers ALMOST two-thirds of organisations allow technology to be managed outside of the IT department, a shift that brings with it significant advantages — and increased privacy and security risks.

This was revealed in the 2019 Harvey Nash/KPMG CIO Survey, which found that when IT spend is managed away from the direct control of the CIO, companies are twice as likely to have security areas exposed, and more likely to fall victim to cyber-attack.

The largest technology leadership survey in the world analysed responses from organisations with a combined technology spend of more than $250bn. Findings showed that when the IT team was formally involved in decision-making,

Opportunity to capitalise on value business advantages (include improving time-to-market for new products and employee experience) benefitted.

However, 43 percent of surveyed companies were not formally involving IT in those business-led decisions. These organisations are twice as likely to have security areas exposed than those who did consult IT, 23 percent less likely to be “very

or extremely effective” at building customer trust with technology, and nine percent more likely to have been targeted by a major cyberattack in the past two years.

These risks are uncovered as cyber security reaches an alltime high as a board priority.

The opportunity to capitalise on the value of business-led IT, and manage risks, comes at a time of significant change for the business, the CIO, and the IT department.

Although the influence of the CIO remains intact (66 percent of respondents view the role as gaining influence), fewer CIOs now sit on the board — from 71 percent to 58 percent in just two years.

The study also found that AI and automation are driving

reynermedia via Flickr 36

No longer will people have to be transferred between dozens of different call handlers

‘Bad news — we’ve just bought a new laptop and you’re all fired’ increasingly become a priority — and many are not at all ready.”

Steve Bates of KPMG International said there was “no longer business strategy and

technology strategy”, but “simply strategy with technology driving it”. He said research shows that organisations putting technology in the hands of value-creators and

AI'S EFFECTS ON THE JOB MARKET: ALWAYS LOOK ON THE BRIGHT SIDE

By GEGE GATT RESEARCH from KPMG and Harvey Nash has revealed that as many as a fifth of workplace roles may be overtaken by “AI solutions”.

While these findings may reignite fears that robots are about to take over, an overlooked fact is that — potentially, anyway — by implementing technology, employees and customers both stand to benefit.

Advanced technologies, such as AI and virtual assistants to complete routine, repetitive tasks, could free-up employees to focus on more challenging and creative tasks, which would bring a greater sense of achievement to the daily grind. This encourages employees to spend more time on complex, revenue-generating tasks, which allows the business to improve its bottom-line.

Customers also stand to benefit; no longer will they have to spend hours on hold or being transferred between dozens of call handlers. AI-enabled assistants would take care of queries similar in nature, while humans deal with those that require some emotional intelligence.

So it's a win-win situation — business, customers and employees all stand to reap some benefits, and it's just possible that new technology boosts jobs, rather than causing them to be lost.

Business Vision Summer 2019 Issue • www.bv.world

change — as the IT department is being tasked to improve efficiencies. CIOs expect that one in five jobs will be replaced

by AI or automation within five years. This is likely to lead to a significant reorganisation of roles, but 69 percent of CIOs believe that new roles will compensate for job losses.

Technology leaders are struggling to find the right talent, with skills shortages at their highest level since 2008.

The three skills in demand are big data/analytics (44 percent), cybersecurity (39 percent) and AI (39 percent).

“In an age where anyone with a smartphone and credit card can set up an IT system, there are both incredible opportunities and major risks,” said Albert Ellis, CEO of Harvey Nash. “Those enterprises that get the balance right between innovation and governance will be the winners.

Boards are asking their CIO and technology team to prioritise automation. How organisations adapt to automation will

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Quantum computing is at an early stage, but the technology is already being implemented

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connecting the front-, middleand back-office were winning in the market. “The future of IT is a customer-obsessed, wellgoverned, connected enterprise,” he said.

Digital leaders, organisations that consider themselves “very effective” or “extremely effective” at using digital technologies to advance their business strategies, performed better than their competitors on every aspect surveyed.

These included time-tomarket, customer experience, revenue growth and profitability in the past year. Digital leaders are also more likely to introduce major new changes to products and services in the next three years, and focus on making money. Some 76 percent of CEOs in digital leader organisations want their technology projects to make, rather than save, money.

Gender diversity initiatives are not cutting it in big tech, with 74 percent of IT leaders believing diversity and inclusion initiatives

were at best “moderately successful”. There has been minimal growth in women on tech teams — 22 percent this year compared to 21 percent last year — and no change in the percentage of female technology leaders, steady at 12 percent.

Reported increases in IT budgets Although Quantum Computing (QC) is at an early stage, four percent of global organisations, 107 in total, have implemented the technology to at least some degree; big pharma, financial services and energy organisations were the ones making bets in this area. A fifth of organisations implementing QC

were based in the UK, followed by 19 percent in the US, and seven percent for Australia and the Republic of Ireland.

More technology leaders reported increases in IT budgets under their control than at any time in the past 15 years. The jump in those reporting increases (from 49 to 55 percent) is the largest seen, with the exception of 2010, when organisations were still clawing their way out of the global recession. For technology projects where the CEO prefers to save money, almost half of respondents reported budget increases, compared with just 38 percent last year. This suggests that many CIOs are investing to save, for instance via automation. * The 2019 Harvey Nash/ KPMG CIO Survey is the largest IT leadership survey in the world in terms of number of respondents. The survey of 3,645 CIOs and technology leaders was conducted between December 2018 and April 2019, across 108 countries.

SAME VALUES

NEW

DRIVE NADER JABER WINNER OF THE 5K & 10K LEBANESE CHAMPIONSHIPS

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Oprah Winfrey

Cliff1066 via Flickr

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MEDIA mogul, philanthropist and lifestyle guru Oprah Winfrey has had her shoulder to the wheel for positive change and personal growth in the modern world.

She grew up poor in rural Mississippi with her grandmother, and their financial circumstances, along with the political climate of the time, limited her scope and prospects.

Or so you would have thought. But she was just 19 when she began her career as news anchor for a Nashville TV station. Her daytime talk programme, The Oprah Winfrey Show, launched in 1986 — and quickly became the highest-rated daytime talk show in history.

Then US President Barack Obama honoured Winfrey with the Presidential Medal Of Freedom award two years after the programme ended. “In the more than 4,500 episodes of her show,” he said at the time, “her message was always ‘You can'. You can do, and you can be, and you can grow, and it can be better.”

Winfrey's platform has expanded into a vast multimedia empire, which she's organised under the Harpo Inc. umbrella (Harpo spelled backwards is Oprah). Dubbed the “Oprah Effect”, her stamp of approval amounts to golden-goose status for literature and consumer goods. The works selected for her book club invariably made the best-seller list, boosting US sales by 55 million copies. The items spotlighted on her Favourite Things lists fly off the shelves, and her support for Obama is credited with earning him a million votes in the 2008 Democratic primaries.

And over her 30-year career, America's original influencer has, of course, amassed a fortune in proportion to her fame. She's the world's first black female billionaire, estimated by Forbes to have a net worth of $2.5bn.

She has done the right thing, and garnered a reputation as a generous benefactor.

From hosting elaborate giveaways on her show — “You get a car! And you get a car!” — to establishing non-profits with lasting impact, she has consistently used her own success to lift others up.

By the end of her show, Winfrey had sponsored 400 university scholarships, donated $400m to educational causes, and raised $80m for charity through Oprah's Angel Network.

She also established the Oprah Winfrey Leadership Academy For Girls in South Africa for girls who grew up “economically disadvantaged, but not poor in mind or spirit”.

Heather Leah Smith

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PEOPLE

COMIC John Oliver — are you noticing a Ten People Summer theme here? — got his start on The Daily Show and has since moved to satirical news skits and “investigative comedy”.

Quick wit and research proved a winner in that field, but Oliver has also been moved to challenge net neutrality laws that could lead to content censorship and limited informational access to economic potential.

He has enlisted the public in a fight for a free internet. Under the Trump administration, net neutrality has come under attack again.

Oliver and his social media army have so far been unsuccessful in their struggle, but the House Democrats are pushing a bill in Congress that would reinstate some safeguards.

Oliver has always aimed high, and aired an exposé on the Miss America pageant to debunk its claims about funding scholarships for women (and, while he was at it, to poke fun at the absurdity of the event itself).

Despite its inflated figures, he found that the pageant was still the largest global provider of educational scholarships to women. But he urged TV viewers to ignore the swimsuit competitions and support more ethical sources of scholarship funds.

One of the organisations that he showcased — the Society of Women Engineers, which funds scholarships for female STEM students — received $25,000 in donations within days of Oliver's broadcast.

In an episode exploring the dubious market of debt buyers and debt collectors, Oliver used his generous HBO budget to put the crosshairs on predatory practices. He founded a company, naming it CARP (after the bottom-feeding fish) — and bought nearly $15m worth of statute medical debt for less than $60,000. And then he forgave it. The donation helped 9,000 people.

“It's obviously the right thing to do,” he said as he revealed the happy ending to the segment, “but, more importantly, we'd be staging the largest one-time giveaway in television show history.”

With his sweeping gesture, he out-gooded Oprah Winfrey's epic 2004 giveaway, where she spent nearly $8m giving a car to every member of the audience.

Business Vision Summer 2019 Issue • www.bv.world

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Neil Grabowsky / Montclair Film Festival via Wikimedia Commons

John Oliver

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Go-ahead team and pioneer spirit combine in company's on-going bid to minimise risk THE ALTERNATIVE risk transfer market was relatively unknown when Juan Antonio Nino, CEO and founder of Active RE, began to advocate for its adoption across Latin America.

It was hard going at first, but Nino had the foresight, conviction, and determination to see it through — and Active RE (Active Capital Reinsurance, to give it its full title) has gone from strength-to-strength.

In the alternative risk transfer (ART) market, companies purchase insurance cover and transfer risk outside of traditional commercial insurance markets.

Alternative solutions include riskretention groups, insurance pools and captive insurers.

More than a decade after its creation, Active RE continues to evolve, and operates in more than 60 countries.

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Juan Antonio Nino Pulgar Nino founded the company with just three colleagues, and each has proven crucial to the strategy of continuous growth. All are still with Active RE, and now hold senior positions.

“Back in 2007, we only had a couple of clients. They are still with us and have grown, and work

Part of the executive committee, march 2019, from right: Manuel Eskildsen, secretary of the board and chief underwriting officer, Juan Antonio Nino Pulgar, president of the board and CEO, Margarita Nino de la Rocha, VP Corporate Affairs, Ramon Martinez-Carrera, Executive Vice-president, and Christian Vergara, CFO.

with us in several countries,” Nino told BV. “That is part of the beauty of the business, to make your clients your best allies, and grow with them.”

Active Re has become an internationally rated reinsurer of “Excellent Investment” grade.

Active RE began as a new venture in a mostly unknown market and has grown in size and scope to tackle different types of risks around the world. Nino credits the success to the strength of a superb team and a modus operandum that calls for shared benefits.

After due diligence, pay claims, always!

The firm's clients include insurance companies, financial institutions and commercial financing companies, marketing and sales companies, construction companies, tourism organisations, co-operatives, and savings and loans societies. It specialises in reinsurance products, from fraud and theft to credit, life and surety bonds.

The company abides by a motto of “Benefits for all” and an operational philosophy that reads: “Put clients first, measure risks twice, and after due diligence, pay claims, always!”

Watching the development and growth of the team has been a rewarding experience for the

CEO. “We have very little staff turnover, and as we continue to grow in new markets, the merging of nationalities (and languages) has been seamless. We pride

and help us to unite.” Nino has united his team with a common corporate goal, and impressed clients with his business acumen and ART advocacy; it was pretty

Active RE continues to evolve, serving more than 60 countries. ourselves on working closely as a team, and understand that the team is our main asset.”

The company has headquarters in Barbados and offices in Panama City, Miami, London and Madrid; a new branch is planned for Eastern Europe, and Active RE's global aspirations are clear.

As Active RE continues its expansion, gender and racial equality are focal points for the company.

“We have team members from a diverse range of countries, that speak different languages, and hold different beliefs,” Nino said.

“However, we have been able to grow from our differences, and we have come to relish them.

“I believe that those differences make us stronger as a team

much terra incognita when the company started.

With patient guidance and growing trust from clients, the market began to realise the benefits of reinsurance solutions.

The global market is in constant flux, and accurate predictions are difficult to make. Nino nonetheless believes that thorough research and professionally executed sactions will drive corporate growth in the years to come. Active RE will continue to share its repertoire of risk classes while targeting new markets for research, expansion, and partnership opportunities.

As a past president of the Panamanian Banking Association and the Latin American Federation of Banks, Nino has a profound understanding of the Central American business landscape and a network of trusted colleagues.

He also served as president of the Panamanian Association of Business Executives, and was the first vice-president of the National Council of Private Enterprise of Panama.

Active Re’s immersion on the MENA market in the Dubai Insurance congress, representing Active Re: Juan Antonio Nino Pulgar and Ramon Martinez-Carrera.

Business Vision Summer 2019 Issue • www.bv.world

Executive board and committee (2018), from left: Manuel Eskildsen, Juan Antonio Nino Pulgar, Margarita Nino de la Rocha, Christian Vergara, Johanna Vivar, legal counsel, Carlos Garcia de Paredes, special advisor for ERM, and Ramon Martinez-Carrera.

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Where there's muck there's brass: monetisation of trash turns World's waste to profit Bilbao in northern Spain is bracing for the arrival later this year of 1,200 international experts, scholars, decision-makers and activists to talk rubbish. HAL WILLIAMS reports.

THE RUBBISH in question is ours — yours, mine, his, hers, theirs — and it is filling the oceans, growing into squelching, stinking landfill mountains, littering streets and roads, entering the food chain in nanoparticles that can't be seen or washed off — but can certainly be ingested.

There has to be a solution, and the Bilbao conference, organised

by ATEGRUS, the Spanish arm of the International Solid Waste Association (ISWA), aims to find it. Or at least close-in on it.

Because “the” solution, if such

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a thing exists, will not be easy to find. This year's event at Bilbao's Euskalduna Conference Centre and Concert Hall in early October is, after all, the 29th of its kind.

This global meeting will be based on a scientific programme focused on sustainable waste management, the circular economy and resource efficiency.

The participants will “share their critical thinking and to discuss creative ideas”. Critical thinking may be easier to come upon than creative ideas, simply because of the scale of the problem.

René Møller Rosendal One of the experts heading to Bilbao is René Møller Rosendal, co-owner and partner of Danish Waste Solutions (DWS), a

Scandinavian entrepreneur dedicated to making landfills not only cleaner and more environmentally friendly, but profitable. The challenge of monetising waste has been fraught with false starts and misguided innovation; just recently, Philippines president Rodrigo Duterte ordered his government to hire a private shipping company to send back 69 containers of Canadian garbage which had been sent to his country — and leave them bobbing its territorial waters if Canada refused to take them back.

“The Philippines as an independent sovereign nation must not be treated as trash by other foreign nation,” presidential spokesman Salvador Panelo told the media at the height of the crisis. Canada said the waste, which had been exported to the Philippines between 2013 and 2014, was a commercial transaction — and one done without governmental consent.

(Canada eventually relented, and agreed to accept the containers.)

The export of waste is just one example of the human knee-jerk reaction to dealing with rubbish: get it out of sight. From pumping effluent and toxic waste into waterways to fly-tipping in nature reserves and flinging plastic bags into the sea, our species has an abominable track record of taking responsibility for waste.

Enter DWS, which takes to heart the old saying “where there's muck, there's brass”. The trick is to think “buried treasure” rather than “rubbish tip”. Enhanced Landfill Mining (ELFM) is defined as “the safe exploration, conditioning, excavation and integrated valorisation of (historic, present and/or future) landfilled waste streams”. DWS uses transformation technologies and respects stringent social and ecological criteria in this dumpster-diving drive for valueadded waste management.

“ELFM is part of a wider view of a circular economy and is perfectly complementary to urban mining and recycling in general,” according to DWS.

Recyclable materials such as plastics and metals can be recovered; so, too, can land for redevelopment, methane gas for energy generation, and valuable — but toxic — elements from batteries and old mobile phones.

The removal of potential sources of pollution benefits the local environment and generates positive opinion from local stakeholders.

Landfill “voidspace” is freed-up, and the costs associated with landfill aftercare — such as leachate treatment and monitoring — are minimised. A landfill mining project can attain another modern-day grail: green jobs.

The concept is not new; the first reported project was in Israel in the 1950s. Nor is landfill mining limited to any one country, and it takes many forms, from scavenging by hand in developing countries to sophisticated sorting, treatment and gas-extraction in the Nordics, Germany, Belgium, Holland, and other go-ahead (and wealthy) nations.

“We've been working on trying

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Experts gather at Danish Waste Solutions. Picture by René Møller Rosendal

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to address landfill mining at the European Union,” Rosendal told BV. “In Denmark, landfills are not a problem; we have reduced the amount of organics which go into landfill since the beginning of the 1990s, so we don't produce much gas. We collect the leachate and treat it. But internationally, it's a big problem.”

In most of South America, Eastern Europe and Africa, there are few safety systems in place.

“You have problems because there is too much waste on top of the landfill,” says Rosendal. And the risks are not only environmental: “(Rubbish piles) collapse and kill people, you have a lot of gas because of all the organics in the landfill, and fires, of course. In South America, they don't have liner systems, they don't treat leachate, they don't collect the gas; then you have a problem.”

That inaction could be caused by financial woes in struggling economies yet to be convinced of the potential financial benefits.

But in the wealthy (and wasteful) US, 80 to 90 percent of all waste ends up in landfills.

Harvesting gas is important for financial as well as environmental reasons. “You can drill through the waste, and you have ‘wells' where you can extract the gas, put it into a generator, and you can actually produce energy and electricity,” Rosendal explains.

“That's how it works. If you want to save money, you can put in a drainage system, so you don't have to do the drilling; that's a bit cheaper. In Denmark, when we have a five-metre depth of waste, we put in a drainage system.

“Some governments insist that you have a gas system installed; then it will benefit from income.

If you don't have that, it's a problem for climate (change).

In Denmark, we have a sorting system, a lot of incineration, so we don't dump so much waste into landfills. We have minimised waste by producing energy, and using it in incinerators.”

If it is properly monitored and managed, incineration is less of a problem than landfill, insists Rosendal. More worrying is the

Europe is not the main source of the problem amount of toxic waste finding its way into sites. “At some point, you will have it in the leachate, it will go into the groundwater, into lagoons, into the ocean. A lot of landfills are located in coastal areas. Batteries go into garbage bags and end up in the landfills.”

Selective harvesting of these hazardous, but potentially valuable, chemical products can mitigate pollution, and provide a source of income. And the best way is to reduce the amount of waste, and sort it by type — at the homes where it is produced.

When it comes to monetising waste, one of the worst solutions — as exemplified in that bitter trash-talk between the Philippines

and Canada — is selling it internationally. “In Europe, we import and export a lot of waste, and it can't be a good idea,” Rosendal says. “We can ship it to Germany, where they can manage it there in an environmentally friendly way.

“But there are a lot of countries that are actually exporting their problems: Canada, the US, they have all the ‘bad' plastics that they export to Asia. And what does Asia do with it? Nobody knows.”

So, whose problem is this?

Ours, as individuals, or is this something governments should be dealing with? “I think it's a combination. In Europe, for the past five years, we've been discussing the problem of plastic, and ‘greened-it up', of course.

Right now, different governments are taking responsibility, talking about banning some plastic products. There's a rising awareness.”

But Europe, where the issue gets the most attention and the most creative solutions, is not the main source of the problem.

“We can't save the world from the European perspective,” notes Rosendal, who remains nonetheless optimistic “about the way we are heading”.

“Globally, there is more awareness — but there's a long way to go. What we are working on now is closing down the 100 biggest landfill sites around the world, to install new sites that are correctly managed, with liners and ample gas-collection systems.

“We want to go from landfill dumps to landfill sites. There's a big difference.”

VAKUFSKA Banka Sarajevo has been operating in the BosniaHerzegovina market for 26 years, and has gained an enviable reputation for professionalism.

The commercial bank has majority domestic capital, and offers a reliable partnership to its clients with a network of branches across Bosnia and Herzegovina and correspondent banks worldwide.

Vakufska's position was strengthened in February 2018 with the appointment of Denis Čivgin to the position of president of the management board. Other board members include Adnan Bogunić and Emir Bektešević.

Last year was an intense one for Vakufska team. There were changes in management, internal restructuring and business optimisation — all with the objective of increasing quality and cost optimisation. “All these are very good preconditions for a major organic, primarily credit, growth,” says Čivgin, “the essential generator of the growth in income and profitability of the bank.”

The bank's performance indicators have improved in terms of portfolio quality, as well as in capital adequacy. Business profitability has increased, and the bank has recorded a record profit over the past 10 years. Čivgin was previously president of the management board of Imex Banka in Croatia, and brings with him a wealth of experience.

He started his banking career in Zagrebačka Banka Croatia (a member of the Unicredit Group), working as finance board member and the director of finances. He also has experience in management positions at Sberbank Croatia and Vaba Banka Croatia (now J&T banka Croatia).

With Adnan Bogunić and Emir Bektešević, Čivgin will continue

Denis Čivgin with the development of the bank and pursue positive results.

Vakufska Banka, with majority ownership by domestic companies from Bosnia and Herzegovina, has a long history in the region.

The bank is focused on providing comprehensive financial service to citizens and SMEs via 20 branches in Federation of Bosnia and Herzegovina. It also offers correspondent banking through a global network.

In 2018, the team of Vakufska banka conducted profound organisational, infrastructural and process transformations to ensure stable, healthy and sustainable growth over the long term.

The precondition for this is quality service, and appropriate

From left: Emir Bektešević, Denis Čivgin and Adnan Bogunić

capital adequacy, Čivgin believes, and a high level of asset quality through strong credit risk management. “I expect that Vakufska will achieve upward trends in business performance,” he predicts. “The banking sector in Bosnia and Herzegovina is well capitalised and liquid, and no significant upheavals are expected.

“There is sufficient liquidity, and the banks will almost surely follow the economic growth with their credit activity, inasmuch as allowed by the business climate and the quality of financing projects.”

Interest margins have been dropping in the region, settling at a low level. “However hard the game gets,” he says, “and with the banks having to compete in the credit market of Bosnia and Herzegovina, it is not realistic to expect that that rates will continue to fall. It is more likely that they will stagnate.

“The speed and quality of service, and the satisfaction of clients and employees, will be key factors for success and differentiation in relation to our competitors.”

The focus of Vakufska Banka remains on the improvement of the speed and quality of service in all sectors, on the offer of optimal banking solutions and digitalisation of services.

“We want to strengthen our relations with SMEs, and work on the optimisation of service processes and product development,” says Čivgin, “with the desire to become the firstchoice bank.”

In the first half of 2019, Vakufska Banka has achieved its projected plan values, and Čivgin believes the positive trend is thanks to “the exceptional engagement of our entire team”.

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At the top of its game and on-target for future growth

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Preventing the unintended effects of reckless innovation

By NABIL ABU EL ATA HUMAN evolution is intricately bound to innovations that have offered new efficiencies or qualityof-life improvements — and unintended consequences.

The technological advances of the First Industrial Revolution increased the standard of living through mass-production and job opportunities, but also brought pollution, poor working conditions and new health hazards.

More recently, huge profits were made when hedge funds popularised Mortgage Backed Securities (MBS) in the early 2000s. But in hindsight, it's clear the innovative use of MBS played a major role in creating the 20072008 economic crisis. With the

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Anticipating outcomes in a complex system is not easy Fourth Industrial Revolution upon us, the risks are increasing due to the accelerated pace of innovation and the hyper-connectivity of our modern world. Now a seemingly harmless innovation can trigger a ripple effect that impacts worldwide governments, economies, private industries and citizens in unexpected ways.

Which disruptive innovation

crisis will we face next? An autonomous-weapons arms race?

Out-of-control, self-replicating molecular nanotechnology robots that consume all living matter? The biggest crisis of our generation will probably result from risks that were not anticipated.

Intuitively, everyone understands that an ecosystem will become more complex as we introduce new components, dependencies and influences.

But anticipating outcomes in a complex system is not easy.

When thousands or even millions of dynamic interactions and interdependencies combine, problems result as resources become absorbed for unintended purposes.

Nanoparticles in sunscreen, for example, are

The innovative use of Mortgage Backed Securities played a major role in the 2007-2008 economic crisis

designed to prevent skin cancer, but create harmful pollutants when they wash off into oceans, rivers and lakes.

According to Chaos Theory, the world is changed by the small things that have non-linear impacts on a complex system: the Butterfly Effect. The point is that small events — which may seem perfectly harmless in isolation — can become the catalyst for compounding changes. Over time, the aggregate effect of these changes can cause a system's behaviour to deviate from any predictive logic that assumes a linear, deterministic progression.

Systems — such as markets, organisations and environments — behave like complex, interconnected networks, which often exhibit chaotic rather than linear behaviour. These systems produce dynamic complexity, which lies hidden until the symptoms begin to reveal themselves. When dealing with dynamically complex systems, the likelihood and full impact of the risk is impossible to predict. There

is no precedent and the number of possible states tends to be too large for any given set of samples.

While many people accept the risks associated with innovation as unknowns, and therefore uncontrollable, this isn't necessarily true. Scientists send astronauts into space armed with technologies that have never been proven in real world scenarios, and yet leave nothing to chance.

EMULATION TECHNIQUES Highly precise emulation techniques allow scientists to accurately predict and prepare for a full spectrum of events that have never happened before.

We can construct the unknown data by creating a digital emulation that encapsulates all characteristics, dynamic behaviours and dependencies among system components in a way that reproduces the exact behaviour and adheres to all the rules of the system. Even though this sounds complicated, computers do all the heavy lifting, so like performing a Google search, we can benefit from

the algorithms without doing any mathematical calculations ourselves.

Once an emulation is proven accurate for a known state, users can begin to change variables and stress the system to understand possible future states — including how an unexpected or seemingly insignificant influence may deviate a system or process from its expected path due to the intensification of stress on the dependencies and intertwined structures forming the system.

Successful risk determination and mitigation is dependent on how well we understand and account for the evolution of dynamic complexity, as well as determining the amount of time it will take for a system to hit a breaking point (aka singularity).

Knowing what conditions will cause singularities allows us to understand how the system can be stressed to the point at which it will no longer meet its objectives. Then we can proactively put in place the risk management practices we need to avoid these unwanted

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situations. While the unexpected may still happen, using emulation we will be better prepared to spot new patterns earlier and respond more appropriately to these new scenarios.

To avoid disasters caused by disruptive innovations, policymakers, academia and business leaders must work together to create and use a wider domain of forward-looking risk intelligence. Charging forward without a clearly defined strategy for addressing the environmental, societal and safety implications of disruptive innovations is reckless.

If we continue to reactively manage dynamic complexity related risks, it will make the cure difficult and, in some cases, impossible.

The computer power and mathematical innovations we

need to better control dynamic complexity related risks exist; we just need to use these technologies in a new context. Then users will be able to quickly test thousands of scenarios to identify the risks that come with innovations. Once dynamic complexity is understood and its origins identified, we can move from a reactive to preventive stance. This should be the preferred way to manage innovation risk — identify the dynamic complexity, evaluate the risk of system degradation and/ or singularities, measure the distance to the risk, and take the correct action.

Great progress is being made to this end, but to create an iterative collection of knowledge will require a cultural revolution.

It starts with researchers and businesses that choose to handle

risk more completely and effectively at the local level, but ultimately a top-down approach will be required to bring systems as wide as the environment or economy under better control.

Only a mix of experience, evolution in culture, and proper education can fulfil such a foundational objective. We must work together to see that new risk management methods and practices that address the unique demands of our modern era are implemented. And we must demand accountability from any business, government, regulatory body or other organisation that does not take the path towards this progress. * To learn more about Nabil Abu el Ata, see his Ten People profile in this issue of BV.

HIDDEN SECRETS OF INNOVATORS: SPOT THE SIGNS

By MARK LOFTUS INNOVATORS: entrepreneurs taking risks, investors with confidence in their own judgement, colleagues who find the new angle.

What makes them tick?

You may assume they are filled with selfconfidence, but not every innovator is (or at least has not yet been recognised as) the next Jobs, Gates or Musk. They could well be quiet and unassuming, and not display their potentially explosive talent. You may sense from them underlying unease or tension, a symptom of the dark side that leads them to discovery and invention.

Whoever they are, they are in demand with the world's business leaders. Leadership teams are learning to identify and attract them, and ensure that they arrive once they've been lured in.

Novelists, musicians and artists all create, but innovation goes further. It means experimentation, time-wasting, risk-taking, being prepared to search for something that may not exist‌ or even be possible.

Ironically, based on the reports of 7,000 CharacterScope users surveyed, innovators are likely to be low in self-belief.

They often doubt their own work, and are constantly evaluating and dismissing their own 50

ideas before they're properly formed.

Their colleagues can inadvertently add to the problem by being over-critical, or fretting about potential risks and downsides too early in the piece.

Managing Innovators requires care and nurture. Some will need encouragement, to be told when to push on, and when to quit.

But identifying the innovators in a company is not always straightforward. Data shows that many people whose pattern of strengths indicating a strong fit to the innovator will be invisible because of that lack of self-confidence.

What's more, fresh ideas are fragile things: subjected to too much scrutiny too early, they will shrivel and die (unfortunately reinforcing self-doubt in the process).

To nurture the spirit of innovation, think more like a midwife than a surgeon: be encouraging and supportive, and guide when you can in what is often a messy and disruptive process.

If you are the innovator, try to find a creative mentor who is willing to support you. The most satisfying part of innovation is doing it with likeminded people, working co-operatively. * Mark Loftus is co-founder and CEO of CharacterScope

‘Ground-breaking' link will free-up Sino-British trade on stock exchange: Hammond This will encourage cross-border investment the support of economic and financial dialogues between Britain and China. Through the signing of the Memorandum Of Understanding, the two countries' securities regulators have given the programme their blessing.

Hammond said Stock Connect was an initiative “to deepen our global connectivity as we look outwards to new opportunities in

Asia”. He called it “a strong vote of confidence in the UK market”.

The London-Shanghai Stock Connect project, four years in the making, enables companies to list on both exchanges using depositary receipts.

Depositary receipts — showing ownership of ordinary shares in a company — allow foreigners to buy a stake in a foreign company without the risks of investing directly in a foreign stock (such as currency differences and accounting practices).

Some 260 of the 1,500 companies listed in Shanghai will be eligible to list in London.

The capital's investors can now trade global depositary receipts of China's securities brokerage Huatai.

Business Vision Summer 2019 Issue • www.bv.world

THE BRITISH Treasury has announced a stock link to allow UK-listed firms to become the first foreign entities to list in mainland China.

Then Chancellor Philip Hammond launched the London-Shanghai Stock Connect at a ceremony at London Stock Exchange. The Stock Connect scheme is a reciprocal arrangement between the Shanghai and London Stock Exchanges by which firms can sell shares through dual listings in both countries. It is hoped that this will encourage cross-border investment and provide investors and companies in the UK and China with mutual access to each other's capital markets.

The joint initiative has

Shanghai skyline: companies in the city will be eligible to list in London

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Importance of SMEs to UK economy — and focus is on how to encourage them CHRIS THOMPSON explains why small is beautiful for the future of Britain’s GDP CAPITALISM is under the microscope at the moment, largely because of the disparity in pay levels in the private sector.

What government leaders choose to focus on, in a time of political unrest, will be crucial.

Embracing an improved form of capitalism — by championing the importance of small firms to the economy — would be a good place to start.

The contribution SMEs make to the GDP, and their potential expansion, could be vital to UK

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Small firms account for 99.5 percent of UK businesses growth and a more balanced economy.

Small firms account for 99.5 percent of UK businesses, in all

main sectors. SMEs employ more than 16 million people, and had a combined turnover of £2tn in 2018 — 52 percent of the private sector's overall turnover.

In an article penned for The Telegraph, Oliver Dowden, the then British Minister for Implementation, described small businesses as “the backbone of our economy”.

He went on to suggest that small firms are vital to promoting healthy competition within the public sector.

No longer just a nation of shopkeepers, UK SMEs employ more than 16 million people

Dowden explained that the government has introduced the “challenging aspiration” that 33 percent of public sector procurement spend should be with small businesses by 2022.

While this is positive, more be done to ensure the continued success of small UK firms.

For one, the UK tax book is enormous and complicated.

It runs to 21,000 pages and 10 million words, making it one of the largest publications in the world.

Since 1997 the tax code has trebled in size, and there have been no instances where it's been reduced. This has to represent a missed opportunity by successive chancellors in budget briefings.

Regulation can negatively affect UK trade, making it difficult for small business owners to navigate the rules. Vast amounts of time and money can be used up simply trying to stay compliant.

The system is in real need of reform through simplification.

There are strong arguments for many taxes to be removed and

Flat rates for many taxes could save money for smaller firms plenty of tax reliefs that can be amalgamated. Designed to aid big industry and specific sectors, tax relief in some cases can complicate matters and provide avenues for exploitation through tax avoidance.

It could be of significant benefit to smaller firms if the government carried out its oncestated ambition of abolishing national insurance, with a modest rise in income tax to compensate.

Flat rates for things like capital gains, inheritance and valueadded tax could save money for smaller firms, and simplify business processes.

Delivering on the commitment to a further reduction in corporation tax, and an aspiration to eliminate tariffs where possible, can only help SMEs. Another interesting idea comes from the 2020 Tax Commission report.

This offers a potential solution — once Brexit is finalised.

It proposes that all earnings are treated as either capital — through profits, rents, dividends, and capital gains — or as labour in the form of salaries and wages.

Under this type of scheme, organisations would no longer be taxed as they would be seen as legal constructs that organise capital and labour.

Only individuals would pay tax, doing away with tax on profits that has historically been manipulated to reduce liabilities.

Taxation would then be based on the flow of cash as it is distributed to employees through wages, and investors through the likes of dividends and capital gains.

Another way to help boost small businesses — and, by association,

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the UK economy — is to tackle the productivity problem. According to the BBC (April 2019), UK workers' productivity fell again in the final three months of last year, down by 0.1 percent compared with the same quarter a year ago.

This was the second yearon-year quarterly fall, after a 0.2 percent drop in the July-toSeptember period.

Richard Hey, deputy chief economist at The Office for National Statistics (ONS), said: “It has taken the UK a decade to deliver two percent growth, which historically was achieved in a single year.”

The UK economy has to embrace the technological developments that would most benefit the labour market. Small businesses have a major role to play here in terms of new innovation.

CHEAP LABOUR A previous abundance of cheap labour, primarily from the EU since 2004, has resulted in low-wage work and employment.

According to the Bank of England, many businesses have chosen recruitment over investment. The prospect of Brexit is tightening the labour market and creating shortages.

Businesses are having to turn to investment in new, labour-saving technologies.

This means SMEs need a more pro-investment agenda, with a significant increase to the annual investment allowance. It also needs more to be done to encourage the apprenticeships, up-skilling and training employees. Currently, employers still have to jump through hoops on such matters, and must make use of an approved training provider. Such policies could establish a more effective workforce, and help SMEs compete against larger rivals for top talent.

Research from The Open University's Business Barometer suggests that 69 percent of SMEs believe large employers monopolise the best talent.

Smaller operations are priced

out of the labour market.

Many see employee share ownership as a solution. It may not be for all in the private sector, but this is interesting way of working to targets and sharing in the potential spoils of success.

Reassertion and promotion of schemes such as the Enterprise Management Incentive (EMI) can't hurt.

Try not to shield your eyes as we touch on Brexit, and the paralysis surrounding it.

DECISIONS ON HOLD Uncertainty is bad for business, especially as it leads to spending and investment decisions being put on hold. If organisations aren't investing due to the clouded environment in which they operate, then sluggish growth is no surprise.

The longer this situation of stalemate drags on, the worse it gets. A decision, one way or the other, would give small businesses clarity on where they stand, and how to prepare for what's ahead.

A clearer picture ensures business have a better idea of how their spending will generate growth, and what the return on investment is likely to be.

For a decade, the Bank of England has employed a loose monetary policy of quantitative easing and near-zero interest rates.

This has caused all sorts of

behavioural distortions and could be difficult to change unless action is taken.

Low rates distort consumer behaviour by encouraging borrowing at the expense of saving. Figures from the National Audit Office (NAO) show that in 2018, 8.3 million people were unable to pay debts on credit cards, car loans and payday loans — even household bills.

Businesses have become hooked on cheap finance and lessening this dependency could be very difficult. When rates remain so low, entrepreneurialism and competition may be discouraged.

UK PRODUCTIVITY Smaller firms find it increasingly difficult to disrupt the older, slower-paced ones, because the latter can amble along, propped up by cheap money, easily keeping up with the relevant payments. This in turn holds back UK productivity. The longer this is ignored, the faster, harder and more painful the potential consequences of rate rises could be.

The Exchequer has plenty of options, but needs to decide on which route is going to be most beneficial — to small firms and the wider UK economy. * Chris Thompson is a partner at Wellers Accountants.

BIGGEST CHALLENGES FOR SMALL BUSINESSES BRITISH SMEs see economic uncertainty, on-going digitalisation efforts and increased competition as the biggest challenges facing their organisations in the next two years.

SMEs require strong leadership in periods of change, but a significant proportion believe that this is lacking in their organisation, research from Robert Half UK shows. SMEs are the backbone of the UK economy, accounting for 52 percent of all private sector turnover — £2 trillion annually.

When looking at implementing new digital solutions, two in five companies canvassed felt their leadership team was resistant to change and a further two in five say they have poor soft skills. Three in 10 cite a lack of communication as an issue of concern.

The skills identified for strong leadership include strategic thinking, adaptability, emotional intelligence, communication and collaboration. These so-called soft skills — once overlooked and undervalued –– are now identified as crucial to a good CEO.

Ellen DeGeneres

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PERPETUAL positivity is something Ellen DeGeneres uses as a guiding principle and a focus.

Tulane Public Relations via WIkimedia Commons She's a master of marketing, a social media superstar and (to some, at least) one of the funniest comedians around.

She has dedicated as much time championing her favourite humanitarian causes as she has perfecting her brand of observational humour.

Her talk show, The Ellen DeGeneres Show, ranks as one the most popular daytime programmes of all times, and has racked up over 50 awards since its 2003 debut. But DeGeneres struggled to sell the idea to network bigwigs who felt her sexual orientation was bad for viewing figures. This classic comeback story has those shortsighted naysayers eating crow these days.

DeGeneres made television history when she came out as a lesbian on The Oprah Winfrey Show (and in her ‘90s sitcom Ellen). Her story was celebrated on the cover of Time (“Yep, I'm gay!”), but she lost advertising sponsorship and her programme was cancelled. The rejection sent the comic into a depression that took three years to overcome.

But courage of her convictions paid dividends in the long term. Forbes estimated her 2018 earnings at more than $87m, and her Netflix special Relatable made history with a $20m-per-special payday.

She sat down again with Time, 14 years after her famous cover story, to talk about her career. Comedy, she said, was her passion. “When it works, there's nothing better than making people laugh,” she said. “There's no better feeling.”

No better feeling except, perhaps when giving things away. Her televised generosity is legendary, with regular cheques for do-gooders and annual features like Ellen's 12 Days Of Giveaways showering studio guests with Christmas gifts.

Businesses are happy to partner with her in support of worthy initiatives, and Walmart joined her to donate some $1.6m to support university-bound students at Brooklyn's Summit Academy. Through partnerships with Shutterfly, she donated $10,000 to the Cystic Fibrosis Foundation and $20,000 to an after-school basketball programme. Her initiative with Cheerios, One Million Acts Of Good, was celebrated with a collective $1m giveaway. DeGeneres is a human rights supporter as well as an advocate for four-legged friends. She's donated millions, and raised even more for her favourite charities, earning her the US's highest civilian honour: the Presidential Medal of Freedom.

Heather Leah Smith

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Housing crisis drives home message that carbon-free is key to future on the planet

By HEATHER LEAH SMITH OF THE 7.4 billion people on the planet, an estimated 1.6 billion lack shelter or live in sub-standard housing — and that figure is expected to grow to three billion by 2030.

Sustainable and regenerative housing is potentially part of the solution. Building trends — from ancient passive energy solutions to innovative smart home devices — can alleviate the housing shortage crisis, and be a tool in humanitarian relief work.

Dastan Khalili, joint-CEO of the non-profit educational foundation CalEarth, hopes to inspire a shift in the global mindset towards communities and

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structures that exist harmoniously with their environment. Khalili believes that working with Nature has environmental and economic benefits.

CalEarth envisions future cities that are not only carbon-free, but able to create energy surpluses that can be sold back to the grid.

Solar panels and wind turbines, and rainwater catchment and greywater treatment systems, are key developments to be pursued.

CalEarth operates as an educational institute and a disasterrelief charity with a patented technique for quickly erected, low-cost, eco-friendly homes.

CalEarth empowers communities with its “SuperAdobe” system,

combining typical “tools of war” — sandbags and barbed wire — with local resources, geometry and physics.

Adobe is a form of construction using clay, soil, mud and straw, used by peoples from the US to the Middle East. Khalili's late father, CalEarth founder Nader Khalili, worked with NASA to design structures that were capable of surviving the harsh extremes of space. His concepts proved equally well suited to earthbound dwellings in the face of extreme weather.

At CalEarth's campus in Hesperia, California, the city conducted tests that found the arched domes and apses of

Tests have found the arched domes and apses of SuperAdobe structures are twice as strong as a traditional pitched-roof design

Nader Khalili worked with NASA to design structures capable of surviving the harsh extremes of space sized balls, 85 percent cement and 15 percent earth. The process creates easy paths for stress and resists cracking over time. The structures can be finished in various ways, even covered with vegetation to create “living” green homes.

The thick earthen walls of SuperAdobe offer excellent thermal mass in any climate, maintaining a cool interior even in very hot environments. The structures can be customised with wind catcher technology, based on traditional desert building practices, to capture cool wind from all directions. For heat and cooking, low-tech “rocket stoves” require only 10 percent of the fire fodder that a traditional stove needs to produce the same amount of heat. Pipes can be connected throughout the

building to create a basic central heating system — and the thick earthen walls will retain the heat.

“Part of what we teach is the study of the environment,” said Khalili, “because it's not just a building technology, but an entire holistic way of looking at where you're building and understanding it, so that it informs how you're building.”

The non-profit maintains quality control over construction via its network of workers trained in the SuperAdobe technique to serve as project overseers.

CalEarth donates its blueprints free of charge in the event of natural disasters or humanitarian crises, and requests a small donation only for commercial projects. That money supports the foundation's educational and social initiatives. It is currently

Business Vision Summer 2019 Issue • www.bv.world

SuperAdobe structures to be twice as strong as the rigid angles of a traditional pitched-roof. CalEarth structures meet global standards and have survived earthquakes in Jordan and Nepal, wildfires in California, and Hurricane Maria in Puerto Rico — where traditionally built structures were levelled.

Nader Khalili developed the SuperAdobe technique by borrowing from the ancient wisdom of earthen architecture, paired with modern engineering concepts such as base-isolation and post-tensioning. “These are all open secrets that we've had throughout history,” Khalili told BV. He points to recent earthquakes in Italy that almost destroyed a town but left Roman aqueducts, a thousand years old, still standing. Why? “Because they're all built with arches,” Dastan Khalili explains. “We're taking the knowledge of past, the best of the past, with the availability and the technology of the future, and combining it to create the most effective, efficient, sustainable, and regenerative solutions.”

In on-site workshops and affiliate programmes, CalEarth teaches people how to self-build shelters that can last for years.

Small emergency structures can be erected within a day with the help of one CalEarth-trained leader and a small group of volunteers. Those same principles can be applied to build more complex structures — including large homes with two-car garages and modern amenities.

SuperAdobe structures are built using short and long sandbags, which are stacked in layers, filled in place with moistened earth, and tamped down for compression strength.

Strands of barbed wire join each layer of sandbags, serving as mortar and reinforcement. The corbelled arch domes must be treated with an exterior finish to become permanent. They can be “reptile” plastered with grapefruit-

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beta-testing its latest innovation: a disaster-relief kit, including all the materials needed to build a SuperAdobe dome, in a made-totravel package.

“That's part of our disasterrelief arm which we're trying to develop,” said Khalili, “so that when a situation occurs, one person can go on any kind of a plane with these two duffel bags, show up, and in three days train 10 to 15 people and leave a structure. And then they can take it from there.”

Environmental and economic benefits are rapidly stacking in favour of SuperAdobe structures, but there are some obstacles blocking mainstream acceptance.

The short-term challenges are that non-profit organisations need funding to operate, and certification is often lengthy and expensive.

CalEarth is currently going through the process to acquire

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A time-lapse of the construction process 58

A dome in a ‘made-to-travel package’ for disaster zones international coding approval for its SuperAdobe technology.

One long-term challenge deals with changing global mindsets about what a normal home should look like. When children are asked to draw a house, they invariably create homes made of triangles and squares.

“The triangle means deforestation, because the triangle requires wood. That's a pitch roof. The square requires cement,” said Khalili. “We want to turn that into an arch.”

Benefits are rapidly stacking in favour of SuperAdobe structures

Born under a bad sign? Libra launch facing stiff opposition

Libra ‘could undermine sovereign currencies’ bid. He faced concerns over security.

House committee chair Maxine Waters drafted legislation to prevent the cryptocurrency's launch. Facebook had hoped to make Libra available next year.

The Group of Seven industrialised nations is expected to discuss the potential risks posed

by Libra soon. The European Central Bank will report on the subject when the group convenes, according to The Wall Street Journal.

Some European officials have expressed concern that Libra could undermine sovereign currencies, and the power of the European Central Bank.

While those issues are still playing out, in recent days an investigation by The Washington Post found 12 accounts, pages, and groups across Facebook and Instagram claim to be official hubs for Libra.

Some were only removed after it was reported to Facebook.

Some had offered to sell Libra at a discount through third-party websites.

Facebook doesn't seem to have anticipated scammers being so quick to hit its service, which critics believe will do little to reassure regulators that the company is equipped to handle a global currency.

Business Vision Summer 2019 Issue • www.bv.world

THE TRUMP administration's allencompassing “national security concerns” have been invoked once more, this time in relation to Facebook's plans to launch its own cryptocurrency, Libra.

This time, however, the US isn't alone; there is a growing chorus of international opposition to the social media giant's digital money dreams.

“Many players have attempted to use cryptocurrencies to fund their malign behaviour,” US Treasury Secretary Steven Mnuchin was quoted as saying at a US news briefing. “This is indeed a national security issue.”

But Mnuchin left the door open a crack, saying that it would be “fine” for Facebook to launch Libra should it have a payments system with anti-moneylaundering safeguards in place.

Facebook executive David Marcus faced a Senate Banking Committee hearing and met with the House Financial Services Committe over the cryptocurrency

Facebook executive David Marcus faced a Senate Banking Committee hearing

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‘Halo effect' of charitable giving and CSR benefits companies — for years Corporate Social Responsibility — is it more than a buzzword?

EMILY STONE, senior research editor at Kellogg Insight, investigates.

IT'S NOT hard to see how communities stand to benefit when firms are serious about Corporate Social Responsibility (CSR), whether by participating in a clean-water campaign or having a philanthropic presence.

But what about the firms themselves? How does doing good affect their bottom line?

Companies can indeed benefit from engaging in socially responsible activities.

Investors' reactions when a company directs its resources toward CSR programmes has less to do with the initiatives themselves than previously thought, according to research from Northwestern University's Kellogg School of Management professor emeritus Thomas Lys, assistant professor James Naughton, and Clare Wang of the University of Iowa, who was at Kellogg when the research was conducted.

When a company devotes resources to a CSR programme,

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Thomas Lys

Most research has focused on company stock prices it sends a signal to investors about the overall health and financial performance of the company.

Companies whose CSR spending exceeds investor expectations experience positive stock returns.

The opposite is true if the CSR spending is less than investors had expected.

And this investor response occurs despite the fact that CSR expenditures do not generate a return on investment. In isolation, they would be expected to reduce shareholder value.

So what is at work? The researchers explain that when investors see a firm withhold or devote resources to CSR initiatives, they infer that its executives are acting on private information about the future

Clare Wang

earnings and cash flows of the firm. In other words, CSR is what “rich” companies do.

Most research examining the effects of CSR — and in particular, environmentally friendly activities — has focused on company stock prices. Operations professor Sunil Chopra chose a different angle.

He and a co-author analysed how eco-activities affect companies' operating performance — a range of measures that include costs, revenues, margins, and profits.

They used a database of press releases to identify companies in the computer and electronics industry that announced an ecoactivity from 2000 to 2011 and had publicly available financial data.

Then they paired each company with a control firm that did not initiate eco-friendly practices, but was similar across a variety of other factors.

Dylan Minor

Photo: csrbox.org

When the researchers analysed the operating performance of companies for two years prior to the announcement, and for two years following it, they found that, overall, eco-activities paid off.

Companies that pursued them performed better than those that did not, and the difference was especially striking in the second year following the announcement.

The biggest long-term benefit went to companies that engaged in activities that were more complex, such as those that followed the directives of a standard-setting organisation like LEED or required collaboration with other companies. Hewlett-Packard, for example, adopted new technology from Citrix Systems designed to lower the consumption of power and cooling resources in computer servers.

“If you're just doing something like changing the light bulbs, that's simple and has an immediate benefit,” Chopra says, “but collaborations often involve other parts of the supply chain.

They're more complex, and they

require an initial investment. But they do seem to pay off.”

An increasing number of companies are tying CEO's compensation to achieving CSR goals, known as CSR contracting.

Kellogg's Dylan Minor wondered how effective such contracts really were at benefiting society, and the firm.

Minor and co-authors built a database of companies in the Standard & Poor's 500 Index that use CSR contracting.

The pace of growth in CSR contracting was remarkable. As of 2013, “almost 40 percent of public companies were currently contracting in some form”, said Minor, an assistant professor of managerial economics and decision sciences. “Going back 10 years, it was only 12 percent.”

The researchers then used three measures from outside organisations to assess each company's actual behaviour. They found that on all three measures — toxic chemical emissions, the number of eco-friendly patents filed, and an overall rating of

social responsibility — companies improved when they used CSR contracting.

Perhaps more striking is that these improvements did not come at the expense of a company's bottom line. CSR contracting led a firm's value to increase by three percent over the following year.

How far do the effects of CSR reach? Can it affect customer perceptions of a company and its products? That was the focus of research from marketing professor Alexander Chernev.

He found that knowing that a company has behaved ethically can cause customers to perceive that company's products as performing better. They call this effect a “benevolent halo”.

“This is a different story than just saying, ‘People like the company more',” Chernev says. “The increase in positive perception is not based on advertising. Consumers actually experience the product in a different way.”

The researchers devised a series of experiments in which

Business Vision Summer 2019 Issue • www.bv.world

Tech Mahindra Foundation launches an ‘All Women’ SMART Academy for Healthcare in Mumbai

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Alexander Chernev

Megan Kashner

consumers were able to sample a product — such as tasting wine or inspecting the results of a teeth whitener — and evaluate its performance. Some participants were presented with written descriptions of the company's socially responsible behaviour, for instance that the company behind the teeth whitener had made sizable donations to UNICEF, or that the winery donated part of each sale to the American Heart Association.

The giving was entirely unrelated to the company's core business, but participants who were told about it consistently rated product performance higher than those who were not informed about any charitable donations.

But not all corporate giving is rewarded with a benevolent halo, the researchers found.

Customers need some uncertainty about a product's performance

— otherwise there is no need to infer information about the product based on the company's social responsibility. In the winedrinking experiment, participants who considered themselves to be inexperienced wine drinkers were more affected by the charitable donations than those who had more self-reported expertise.

Consumers must also believe the company's motives to be authentically benevolent. The halo effect is strongest for customers who believe that corporations have an obligation to act charitably.

How has CSR changed over the years? A conversation last year between Shannon Schuyler, the chief corporate responsibility and purpose officer at PricewaterhouseCoopers, and Megan Kashner, Kellogg's director of social impact, addressed this question.

According to Kashner, entire

Shannon Schuyler industries are coming together around issues they think are important to society and to their business.

Companies, Schuyler explains, “say, ‘I don't care if we go head-tohead on the shelves. If we do this together, we help our industry more than if we went it alone'.”

And there is another trend, says Schuyler, who is also an adjunct lecturer of social impact. “Today, if you're inconsistent, you're toast.

You've got to stand for something, and you have to make sure that your behaviours and your values guide you through the decisionmaking process.” * This article first appeared in Kellogg Insight

Are you a rabbit in the headlights? Avoid the investment ‘blind spot' Specialist guidance from the outset underprepared for investment meetings and giving away too much equity.

John Morris, partner at professional services group Smith & Williamson, said the desire for businesses to raise external finance indicated ambitious plans for future growth and was “a barometer for a healthy economic outlook”. But, he added, “there's no denying that seeking funding is incredibly time-consuming, and failed attempts are costly”.

To have the best possible chance of success, firms need to

bridge the current knowledge gap around the processes of raising finance. One business may be much better suited to a VC, while another should be looking at angel investors, peer-to-peer, or crowd-funding. Staying attuned to these different routes and their relative strengths and weaknesses is critical, says Morris.

The waste of time and resources by approaching the wrong type of investor is concerning, he says.

“These mistakes can be avoided by seeking specialist guidance from the outset, which can also improve the prospects of a firm securing the funding it needs, reducing the failure rates.” * Smith & Williamson is an independently owned financial and professional services group.

Business Vision Summer 2019 Issue • www.bv.world

MORE THAN half of UK businesses with a turnover of more than £1m are actively looking for external finance, according to a new report.

Business founders cite building infrastructure, strengthening management and financing R&D as the primary reasons for seeking investment.

But despite this hunger for finance, failure rate remains high.

The report established seven in 10 businesses were unable to secure finance at the first attempt. Almost four in 10 failed more than three times, and some have made five or more unsuccessful attempts.

A significant factor behind these failure rates could be the knowledge gap on external funding.

In most cases, the more institutional the investor — and the more formal the process — the less confident businesses are.

Seven in 10 firms are unsure how to access private equity and venture capital, and despite the rise of peer-to-peer lending platforms more than eight in 10 businesses aren't confident in accessing them.

The most common route for successfully raising external finance is equity investment from family or friends, which, while cheap and easy, comes with clear limitations. These include the actual amount of funding suited only to early-stage businesses (and carry the potential impact on personal relationships if the business fails).

Most businesses admit wasting time and resources by pursuing the wrong type of investor. Other challenges include a drop-off in business performance, being

John Morris, partner at Smith & Williamson

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Brazilian meeting shines light JOSÉ Lino Sepulcri, president of the Espírito Santo Trade Federation, and Gutman Uchôa de Mendonça, the regional director of the association of Brazilian banks (SESC), met with Canadian businessman Brendan Holt Dunn in Greater Vitória, Brazil (pictured).

They met to evaluate the potential of fintech in the country.

Through the Holt Accelerator fintech project, start-ups work to innovate and optimise services

for the financial industry and for innovative, technology-based companies.

Holt Dunn's Holdun Family Office, with branches in Canada and the Bahamas, has featured in BV on several occasions for its prominence in the world of family wealth preservation.

The Espírito Santo Trade Federation, known as Fecomércio, hosted the meeting.

The Brazilian Undersecretary of Development, Christiano Furtado, was at the Fecomércio headquarters for the talks, along with entrepreneurs and state

government representatives.

Sepulcri's presentation outlined the economic potential and scope of trade and services offered by Espírito Santo.

“Our state is focused primarily on micro and small companies,” he said. “We (represent) … 130,000 commercial establishments, and we move about 65 percent of the state's GDP. “We believe that the choice of Espírito Santo for strategic location in Brazil, near major economic centres … is also important.”

Holdun CEO Holt Dunn said

on potential of fintech future he was enthusiastic to take the next steps to bring his business to Brazil to accelerate negotiations, to network and to transform the digital financial market.

“Our concern with coming to Brazil was finding the people, the companies and the right institution, so we planned these two days of meetings,” he said.

Christiano Furtado said the Canadian businessman had arrived at an opportune time, as the state was ready to support investment. It was committed to support Holdun “in any way necessary” to make Vitoria a

reference point for development of technology and new business.

The meeting was followed by a tour of Vitória, the capital city of Espírito Santo state in south-east Brazil. Alessandro Dadalto and Augusto Brunow led the tour and explained the region's history, development, economy, and opportunities for growth.

Support came from government and tax authorities, the trade federation, and the local university. Bandes — the development bank of Espirito Santo — has also played a part.

Holdun is also launching a

family office in Miami, Florida.

Brendan Holt Dunn said the firm's family history had served it well in global terms.

“We're looking forward to bringing our expertise to the domestic US market,” Holt Dunn said.

The new Miami team has more than a century of combined banking experience.

It includes president Michael Blank, CIO Giuseppe Mazzeo, head of global compliance Marc Bonorino, and Ileana Torruella and Adilia Lugo as senior relationship managers.

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Dependence on commodities leaves countries ‘vulnerable to shocks' and ‘weakened' THE NUMBER of countries dependent on commodities has reached its highest level in 20 years, according to a recent UNCTAD report.

UNCTAD (United Nations Conference on Trade and Development) defines commodity dependency as the moment when these account for more than 60 percent (in value terms) of its total merchandise exports.

The State of Commodity Dependence Report 2019 shows commodity dependent countries increased from 92 (from 1998 to 2002) to 102 (2013 to 2017).

More than half of the world's countries (102 out of 189) and two thirds of developing countries are dependent, the report indicates.

“Given that commodity dependence often negatively impacts a country's economic development, it is important and

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UNCTAD via Flickr

Mukhisa Kituyi, UNCTAD secretary-general urgent to reduce it to make faster progress towards meeting the sustainable development goals,” said UNCTAD secretary-general Mukhisa Kituyi.

Commodity dependent developing countries are vulnerable to negative commodity price shocks and price volatility.

It is a problem of developing

Prices of energy and minerals increased more than those of agricultural and manufactured goods

countries, almost exclusively, according to the report — with 85 percent of those which categorised as “least developed” affected. That can be further broken down to include 81 percent of landlocked developing countries and 57 percent of small island developing states.

Sub-Saharan Africa is the most affected, with 89 percent of countries classified as commodity dependent. It is followed by the Mena region (Middle East and North Africa), where 65 percent of countries depend on commodities (see graph above).

Half of the countries in Latin America and the Caribbean, and half of the countries in East Asia and the Pacific, are also commodity dependent.

The problem is a persistent one, according to the report. The dominant groups of exported products changed in just 25 percent of countries from 2013 to 2017, and that was partly due to changes in commodity prices.

The number of countries dependent on the export of agricultural products declined

from 50 to 37 in the 19982002 and 2013-2017 periods respectively. The number of mineral-dependent countries rose from 14 to 33, while the number of energy-dependent countries increased from 28 to 32.

Sub-Saharan Africa is the most affected Relative price fluctuations among the different commodity groups contributed to changes in the dominant product groups exported, as the prices of energy and minerals increased more than those of agricultural and manufactured goods.

The average commodity price levels between 2013 and 2017 were below their peak (2008 and 2012), the report revealed.

This contributed to an economic slowdown in 64 commodity

dependent countries, with several going into recession and public debt expanding, often as an increase in external debt.

The external debt of 17 commodity-dependent developing countries increased by more than 25 percent of GDP between 2008 and 2017.

Some countries have succeeded in diversifying their production and exports over the past two decades.

Energy-export dependent countries such as Oman, Saudi Arabia and Trinidad and Tobago increased the share of noncommodity exports by adding value in their downstream sectors.

Other energy or mineral-exportdependent countries like Rwanda and Cameroon managed to expand their agricultural exports.

The State of Commodity Dependence Report 2019 can be downloaded from the UNCTAD website:

Business Vision Summer 2019 Issue • www.bv.world

Source: UNCTAD State of Commodity Dependence Report 2019

https://unctad.org/en/ pages/PublicationWebflyer. aspx?publicationid=2439

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Winning philosophy, bold progress, and a cyclone test passed with flying colours DHOFAR Insurance Company believes in looking after its customers, thinking globally — and becoming everyone's insurer of choice.

Dhofar Insurance (DIC) has been putting that ethos into practice since it was first registered as an Omani Public Joint Stock Company, and incorporated in the Sultanate of Oman, in 1989.

The company is headquartered in the Mattrah administrative district of Muscat, and now has 42 branches, including seven regional offices.

The network covers different parts of Oman, including Khasab and the borders of UAE and Yemen, providing accessibility and efficient and coherent services throughout the region.

With the increase in branches, premium and underwriting results, the company's workforce has increased from seven in 1989 to more than 300 today.

DIC has also developed strategic relationships in Europe, the Middle East, and the Far East.

These partnerships have assisted on reinsurance and training aspects, enabling the company to innovate and insure very large risks — sometimes hundreds of millions of Omani Rials — that other companies may have shied away from. DIC has systematically increased its net retention and its overall capacity.

The first-class insurer adheres to the highest standard of business principles and ethics, maintains operational excellence

in all business areas, attracts and retains best talent and prides itself on its customer service. Customer loyalty is strong, with a widespread distribution network and innovative ways of doing business.

The company is poised for growth, and the key focus is to create value for all stakeholders: clients, shareholders, regulators and employees. Another focus is the selection of areas of business for product and process innovation. A new application enables automation through business-based rule-creation and risk-management. It also has analytical and management information system (MIS) capabilities to enhance the customer experience.

Contributing to society and

Mostafameraji via Wikimedia Commons

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The company is headquartered in the Mattrah administrative district of Muscat

Sunil Kohli, CEO of Dhofar Insurance Company workers, as well as high staffing costs. Insurers are likely to face an increase in operating costs in the short-term, but the maturing and strong regulatory environment is likely to create strong, stable and sustainable insurers going forward.

DIC has established a training centre to be at the forefront of technological developments in the insurance industry and the world at large. Staff training enables staff to grow personally as well as professionally, turning team members into insurance

professionals and enabling them advise clients on best possible solutions.

As well as winning a BV award for its innovation, Dhofar Insurance has been honoured for the fourth consecutive year under the “Omanisation” programme — and has been recognised not just by the Sultanate, but by the Middle East as a whole. Other honours include the Distinction In Employment Of Nationals, granted by the Gulf Council Of Arab Countries (GCC) in Kuwait in 2004.

Zurfa via Wikimedia Commons

Big risks of hundreds of millions of Omani Rials can be covered

Business Vision Summer 2019 Issue • www.bv.world

demonstrating corporate social responsibility is a core value at Dhofar Insurance, along with mindfulness for others and paying back to the community. A spirit of co-operation, human dignity and promoting diversity add to the proactive thrust.

During catastrophic events that have impacted the Sultanate — cyclones Gonu, Phet and Mekunu — Dhofar made swift and effective responses. Mekunu was the strongest storm to strike Oman since 1959, causing damage of more than $400m. It was a test for DIC — and one it passed with flying colours.

DIC took immediate measures to circulate messages with advice on loss-prevention, with officials available on the ground to address, site inspections, office space made available to Loss Adjuster Teams and protection of insured interests on behalf of clients. There was immediate notification to all reinsurers of the event to ensure monetary support.

The company reported 187 per cent growth in 2018, driven by a balanced underwriting performance which saw the loss ratios reduce from 94 per cent to 77 per cent. Efforts undertaken by the company over recent years have turned performance around. The balance sheet has been strengthened, in addition to creating reserves for claims and premiums based on an independent actuarial valuation report.

The company successfully completed the capital restructuring proposal that included a two-stage capital reduction, and a right issue of equity shares and mandatory convertible bonds.

This restructuring, along with other initiatives, has helped to achieve a solvency margin surplus.

Looking at the future of the insurance industry in the region, a less diversified product portfolio has led to price competition in motor and medical insurance lines and, hence, high loss ratios.

There is a shortage of skilled

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Green energy overtakes fossil fuels in the UK — but it pays to read the small print...

With just half the year gone, the National Grid says that 2019 will be the year when zero-carbon energy overtakes fossil fuels as the main source of electricity. BV’s JASON AGNEW wonders whether that’s true…

JUST 10 years ago, a third of the UK´s electricity was generated in coal-fuelled plants, but that figure has this year been reduced to three percent. Renewable energy has, in the same period, has increased its supply tenfold, from two percent to 20.

National Grid has described this as a ¨landmark tipping point” and a historic achievement as the UK aims to stay on course to becoming a net-zero carbon economy by 2050. John Pettigrew,

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the chief executive, called it “incredible progress”. Will 2019 really be the year zero-carbon power beats fossil fuel-fired generation? Pettigrew said the claim wouldn´t be made without confidence in the figures.

A mild winter meant less energy consumption than usual, and this — plus particularly strong winds — meant that Britain´s carbon intensity (the amount of carbon produced for every kilowatt of electricity) fell substantially as the

gas power plants did the heavy lifting, and produced 50 percent less carbon emissions than coal.

The combination of warmer temperatures and the increased æolian activity (from the Greek god Aeolus, keeper of the winds) enabled the UK to achieve a record stretch of consecutive coalfree days earlier this year, lasting until early June.

Chris Skidmore MP, the interim energy minister, predicted that coal would soon “be

National Grid is spending around £1.3bn a year to adapt to renewable energy

Steve Allen / Shutterstock.com

consigned to the history books”.

National Grid is spending around £1.3bn a year to adapt the grid to run on renewable energy, and the government claims that the use of coal will have been completely phased-out by 2025.

Doug Parr, Greenpeace UK's chief scientist, acknowledged that the country is “broadly heading in the right direction” — but questioned whether this was happening quickly enough.

However, there is a flaw in the binding emissions laws: the biomass loophole in global carbon accounting that was not closed in the writing of the Paris rulebook at the UN Climate Summit in Poland last December.

The UK is accelerating plans to replace coal with wood pellets, or biomass, in four of the six largest power plants, located in North Yorkshire and operated by Drax Power. Former coal-fired plants across Europe, especially in Denmark and Belgium, are also converting to the pellets.

Wood pellets are classified by the United Nations as a “renewable

resource”. Trees can certainly be replaced by replanting, but researchers estimate it will take 50 to 100 years for saplings planted today to absorb current emissions and achieve a net-neutral goal. No government has so far required that companies plant new trees to replace those cut down.

Studies show that wood pellets produce more heat-trapping carbon dioxide than coal, because it requires proportionally more pellets to produce the same amount of energy as coal.

Yet, because wood pellets are classified by the United Nations as a renewable resource — on an equal footing with wind and solar power — the biomass greenhouse emissions from converted power plants are officially deemed carbon neutral.

Some Eastern European countries won't play ball with lofty targets; at the Poland summit, Czeckia, Estonia, and Hungary blocked the plan to commit to zero emissions by 2050. Poland itself doesn't want to commit to the goal without a burden-

sharing mechanism to balance out potentially adverse effects on the economy.

The failure to reach a consensus leaves the EU emptyhanded at a UN climate summit planned for September in New York. Although Europe produces less than 10 percent of global greenhouse gas emissions, the UN was keen for the EU to lead by example.

The fact that the bloc of 28 couldn't agree — and that the 2050 pledge was downgraded to a footnote stating that a “large majority” of EU countries back the 2050 target — is perplexing for climate-change activists. And with a pro-fossil fuel incumbent in the White House, the UK's achievement might appear less significant.

In the words of the European Greens, “the EU has ignored the urgency once more and put at risk the future of all of us”. Jong Yong Kim, recently retired president of The World Bank, put it bluntly: “We have to wake up to the fierce urgency of the now.”

Business Vision Summer 2019 Issue • www.bv.world

End of an era? A coal-fired power plant in Lincolnshire in the United Kingdom

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Cluck sakes! KFC takes a new line on intensive production standards

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THERE is no “nice” way to kill a creature for its flesh, but KFC has at least taken a first step towards a more humane process.

It is the first UK fast-food chain to sign-up to new European welfare standards. Shops, chains and hotel groups have been urged to commit to the European Chicken Commitment.

This is a single set of continentwide requirements agreed-upon and endorsed by European animal protection groups, including the RSPCA. The KFC commitment goes some way to tackle concerns about inhumane conditions involved in intensive meat production.

The American-owned chain (Kentucky Fried Chicken, remember?) is expected to put

By 2026, it will ethically source chicken used in UK and Europe pressure on fast-food rivals and supermarkets.

KFC hopes the move will help to raise the level of welfare standards across the industry.

It says that by 2026, it will ethically source chicken used in UK and Europe outlets, initiate stricter auditing processes, give birds more space and freedom of movement, and provide perches,

better food, and more natural light.

The industry has been under scrutiny for raising fast-bred birds that cannot even stand. KFC will now purchase slower-growing breeds, and raise them in more humane conditions.

As the world turns against red meat, and veganism surges ahead, “white” meat such as chicken is the “half-way measure” for many consumers. It is seen as healthier — and until now, the welfare of the animals has not been a major consideration.

KFC is taking note of changing tastes and values, and now offers a vegan alternative to chicken, a patty made from meat substitute Quorn, which is proving popular with customers.

Abu Dhabi fintech festival hopes to transform itself into a world-leading event

Unbound CEO and founder Daniel Seal The centrepiece of this programme will be a roadshow to recruit the 50 best fintech start-

Abu Dhabi National Exhibition Centre

ups to help solve the region's innovation challenges.

The aim is to attract talent to the Abu Dhabi ecosystem and create business opportunities.

Unbound CEO and founder Daniel Seal said his company shared the vision to grow FinTech Abu Dhabi. The aim is to bring together “founders, entrepreneurs, banks, financial institutions, corporates, investors, national and international government representatives”.

Ahmed Al Hashimi, corporate communications director of ADGM, said the event should be a truly global platform.

“ADGM remains committed to being an enabler and trusted partner of the fintech ecosystem in Abu Dhabi and the UAE,” he said, “and to support the needs of businesses so that they can set up, thrive and expand.”

Business Vision Summer 2019 Issue • www.bv.world

UNBOUND Innovations has been selected by the financial centre Abu Dhabi Global Market (ADGM) to deliver its annual fintech festival.

Unbound will be working closely with ADGM to make FinTech Abu Dhabi the leading festival in the MENA (Middle East and North Africa) region.

The three-day event will be held October 21-23 at the Abu Dhabi National Exhibition Centre and should attract some 5,000 participants from around the world.

IMMERSIVE PROGRAMME This year's festival has a new format, grander scale, and a more immersive programme.

As part of the festival, the third FinTech Abu Dhabi Innovation Challenge will invite global startups to co-develop their fintech solutions with local and regional partners, and then showcase them at the festival.

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Guy Martin

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GUY Martin is a TT legend, a TV presenter and a selfmade millionaire who still works as a truck mechanic by day. The fearless motorcycle racer and dyed-in-the-wool petrolhead is about as down-to-earth as they come.

So when Martin dipped a steel-capped work boot into the world of business, the Grimsby lad wasn't about to become a yuppie. Known for his straight talking and blunt wit, he started racing in 1998 and made his name on road circuits including the famous — and notoriously dangerous — Isle of Man. He has had 17 podium finishes there — and broken his back twice in accidents (which sometimes ended in explosive fireballs that rival Hollywood special effects for visual drama). Martin's endurance or resilience has never been in question, and nor has his ability on the track.

His retirement from racing has been (mis)reported several times, but Martin is blockheadedly immersed in the world of two wheels, and the internal combustion engine. (Having said that, he did once gain a second-place finish in the TT Zero race for electrically-powered machines, and also enjoys mountain biking.)

But Martin's colours are firmly nailed to the mast of high revs, high speed, and high excitement. So the product he recently started to push was linked to two wheels, practical in nature, and prosaic in name and function: a cleaning product for bikes called the Proper Degreaser.

Martin starred in Closer To The Edge, a 2011 documentary on TT racing, and has presented TV programmes on engineering topics and hosted the Channel 4 series Speed With Guy Martin.

But back to the business: the Proper Degreaser is said to be safe to use on all parts and surfaces, including carbon fibre, anodized parts and rubber seals. It's disc rotorand pad-friendly, alkaline based and contains no solvents, acids or CFCs. It is also 100 percent biodegradable and sold in capsules (to avoid unnecessarily transporting a product that is water-based once mixed) that can be used for up to three years. It is also, according to his website, “not tested on Nigel the dog or his mates”.

Martin is famous for his humour and his humanity, as well as his daring; if safety tests were necessary, he would doubtless have conducted them on himself.

You couldn't hope for a better-placed expert to create and recommend a bike-related product, and Martin — loved, and occasionally loathed, for his lack of tact — wouldn't lie to you. Or anyone. Clean that bike, with a clear conscience.

Hal Williams

PEOPLE

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Nabil Abu el Ata

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FROM artificial intelligence and robotics to nanotechnology and quantum computing, the World is changing at an unprecedented rate — and the associated business and societal risks are growing exponentially.

Keeping a close eye on all this is mathematician, inventor and regular BV contributor Nabil Abu el Ata. He fears that governments and business leaders are not doing enough to manage the risks of the Fourth Industrial Revolution. Citizens and consumers may suffer the consequences, he warns.

The author of The Tyranny Of Uncertainty is on a mission to expose the dangers of using historical data to guide critical decisions, and to manage new threats reactively. The “biggest crisis of our generation” will result, he says, from “unknown risks that cannot be anticipated using intuition or statistical analysis”.

According to El Ata, the 2007 economic crisis was just a preview of the problems that will come our way if we don't properly manage the risks that come with disruptive innovations like mortgage-backed securities. The only way to prepare is to employ scientific methods to predict and track the complex web of associated risks.

“To thrive in the era of disruptive innovation, policymakers and businesses must create, and use, a wider domain of forward-looking risk intelligence,” he says. The mathematical innovations we need (already) exist; “our leaders just need to have the foresight to use them in this new context”.

In the late 1970s, El Ata's mathematical discoveries provided predictive accuracy to put the first satellites in orbit. Since then, he has dedicated his career to helping experts harness the same mathematical principles to manage business and economic risks.

His stated goal is to ensure a more stable future for all — but to accomplish this, he will need the policymakers, economists, academics and tech experts to co-operate to build models that better reflect the dynamic nature of the modern world.

Business Vision Summer 2019 Issue • www.bv.world

PEOPLE

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Office dynamics: tea is key, pen theft is a no-no, and a bit of banter won't do any harm CRACKING a joke, making a cuppa and lending a pen are the fastest ways to form workplace bonds.

In contrast, taking credit for someone else's work, turning up late and not pulling one's weight are sure to annoy fellow employees. These are the findings of a study of 2,000 British office workers.

There's nothing like a cuppa to take the edge off, and in true British fashion, making tea for others builds strong bonds. In fact, more 65 percent of office workers believe the social interaction involved in making a brew brings improves work relationships.

Taking charge of the office tea

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round scored highly among those surveyed, with 77 percent giving it a thumbs-up.

A quarter of people believe that making tea for their boss will improve their chances of promotion. Men are more likely to buy into this theory, with 29 percent believing that there is a link between making tea and receiving a promotion; only 20 percent of women agreed.

But the office tea round also provides opportunities to commit workplace social faux pas. Half of office workers admit to secretly judging people who don't offer to put the kettle on. Strangely, 17 percent confessed to avoiding drinking tea or coffee at work.

Workplace efforts that are greatly appreciated include helping relieve a colleague's workload, assisting with a technical issue, and saving a colleague from a challenging customer or client phone call. Someone who can make colleagues laugh was voted the most popular team member, while 70 percent of those surveyed agreed that sharing stationery goes a long way in helping to form bonds.

Social interactions form a key part of our working life. More than half of those canvassed admitted that they would prefer a happy working environment — or never having to interact with annoying colleagues again — over

Agreeing on the office temperature was also cited as an issue

A quarter of respondents believed that making tea for their boss would improve chances of promotion respondents have had their food stolen in the office, most often from the communal fridge. While a third said they used name tags to prevent food theft, some admitted to going to extreme measures.

This included licking food, putting laxatives in meals to catch the culprit and confronting the suspected perpetrator.

It's not just food that goes missing in the office; a third of workers have lost stationery, with the majority — 87 percent — falling victim. More than a half of workers admitted to being irrationally protective over a treasured item such as their

favourite pen.

Some feel compelled to take action if they have suffered penloss. Workers admitted to shouting across the office or sticking name tags on their stationery as a reaction.

Some even admitted to hiding or locking away their favourite items, while others said stealing (or recuperating) lost items from co-workers was the way they settled the score.

So: eat your own food, be nice, make the tea and keep your hands off other people's pens. Statistically, it's a path to workplace happiness.

Business Vision Summer 2019 Issue • www.bv.world

a pay rise. One in 10 would opt to never answer the phone again over a wage increase.

Chartered psychologist Beverley Stone said the most significant finding was that people were motivated by small gestures. “These are often overlooked by organisations, or even considered not important,” she said. “The environment we work in has a huge impact on our self-image, and we need to feel valued and respected in order to thrive. Positive interactions with colleagues are vital, as they reinforce feelings of belonging and being appreciated. Not feeling supported, or believing that their colleagues lack integrity, can lead talented people to look elsewhere for work.”

When it comes to friction amongst co-workers, people spending too much time on social media, leaving washing up in the sink and being confrontational were listed as top gripes.

Agreeing on the office temperature was also cited as an issue, followed by organising social events, such as the Christmas party. Eating smelly food or chewing loudly, stealing stationery, and food thieves were also dimly thought-of.

More than 35 percent of

Keep your hands off other people’s pens

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Court proceedings mount against pharma firms behind OxyContin scandal JOHNSON & Johnson, Purdue Pharma and Israel-based firm Teva Pharmaceuticals are under increased legal pressure over their roles in the US's opiate crisis.

Johnson & Johnson is one of the world's largest drug manufacturers, and is on trial in a multi-billion-dollar lawsuit by the state of Oklahoma. This is the first of more than 1,500 cases brought against pharmaceutical firms by state, local and tribal governments.

The state alleges in its court filing that the company was the “kingpin” behind “the worst manmade public health crisis” in the state's history.

Prosecutors say Johnson & Johnson deceptively marketed painkillers such as OxyContin (produced by Purdue) and downplayed addiction risks. More than 70,000 Americans have died of opiate overdoses, and an estimated 100 die each day in

what has been called an “opioid epidemic”.

Johnson & Johnson denies the allegations, and claims it marketed the products in a responsible way.

In opening statements in the city of Norman, Oklahoma said that Johnson & Johnson, along with Purdue Pharma and Teva Pharmaceuticals, had pushed doctors to prescribe opioids in the 1990s with misleading marketing.

State lawyer Brad Beckworth said Johnson & Johnson had claimed OxyContin was safe and effective “for everyday pain” and had downplayed the pills' addictive qualities.

The states of California, Maine and Hawaii have joined others in suing Purdue over its role in the crisis. The states accuse Purdue of putting profits before people, and OxyContin is now one of the most widely abused drugs in the US. In addition to its action against Purdue, Maine is suing

brothers Richard and Jonathan Sackler, and two of their cousins, Mortimer Sackler and Kathe Sackler. All four served on the board at Purdue, and Richard Sackler is a former president of the company. The Sackler family wholly owns Purdue.

California's attorney general, Xavier Becerra, said Purdue Pharma and Richard Sackler “started the fire and then poured gasoline” on it with irresponsible practices. The state alleges contradictory evidence about the drug's safety was ignored, and called the marketing drive “deliberate and deceptive”.

Some 45 states have filed civil lawsuits against Purdue.

More than 1,500 city and county governments are suing the company in a collective case in a federal court in Ohio.

Some other pharmaceutical manufacturers are also likely to be sued.

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OxyContin is now one of the most widely abused drugs in the US

A HERTFORDSHIRE clinical trials patient-recruitment company, which began as a onewoman operation in 2010, has announced record turnover and growth.

The news flies in the face of current wisdom on UK economic uncertainty, particularly in the life sciences industry.

Innovative Trials works globally with pharmaceutical companies to help recruit patients into clinical trials of new treatments.

The company, based near Welwyn Garden City, recently recorded a turnover of more than £5m during the last financial year — an increase of around 38 percent.

Innovative Trials has been accepted onto the Goldman Sachs 10,000 Small Businesses programme.

Founder and CEO Kate Shaw said she understood the challenges faced by pharmaceutical companies developing treatments. “I knew I

could offer a solution by focusing my energy and experience on one of the most crucial parts of the process,” she said.

“Clinical trials are a vital part of bringing new treatments to market, but finding people who are eligible to take part in them isn't easy.” The cost can run into tens of thousands of pounds each day in delays alone, slowing the distribution of potential cures to the people in need of them.

“In the nine years since I launched Innovative Trials, we've helped our clients to speedup the process of clinical trial recruitment,” Shaw said. The company has been approached by a major pharmaceutical company to help with clinical trials for conditions such as breast cancer, schizophrenia and Crohn's disease.

With the UK's economic growth described as “subdued” by the Bank of England's Monetary Policy Committee (MPC), Shaw

believes the efforts could boost the UK's business investment.

Innovative Trials employs 33 members of staff in the UK, with a further 60 people in 58 countries ready to help recruit eligible patients.

“We're a small but growing company with big ambitions,” Shaw said. “What helps to set us apart is our experience. Many of our staff have worked on clinical trials in the past, so they know first-hand about the challenges.” · INNOVATIVE Trials has appointed Gary Lumby as its first non-executive director.

Lumby has been UK director of SME banking at Yorkshire and Clydesdale Banks, and held a similar role at Barclays Bank.

He was president of the Leeds, York and North Yorkshire Chamber of Commerce and Industry, and now runs Focus On Success Ltd, a management consultancy company.

Business Vision Summer 2019 Issue • www.bv.world

More than guinea pigs: volunteers help bring treatments to the public

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Innovative and Digital Enterprise Academy: this IDEA's time has come AN INITIATIVE from the University of Surrey — an Innovation and Digital Enterprise Academy, SurreyIDEA — provides a new path for those who can't afford to attend university or want to deviate from the academic route.

The academy is the first of its kind in Europe, providing a novel and progressive learning experience that enables students to gain skills in an interactive format — free from prohibitive entry requirements based on academic achievement. Recruitment will be based on potential. Offering underand post-graduate programmes, the academy aims to help entrepreneurs and provide funded scholarships for students

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New generation of digital entrepreneurs who will join as part-owners of the business and intellectual property that they create.

With the fundamental objective of making higher education available to all, the faces behind SurreyIDEA are not an elitist platform closed to segments of society and increasing the gap between rich and poor.

The UK's education system prioritises academic achievement, but SurreyIDEA wants to welcome

those without the “gold standard” qualifications and acknowledge attributes that have value in the workplace.

Instead of charging students tuition fees, SurreyIDEA will invest in students' enterprises and take a percentage of the profits.

No other business school in Europe has built an entrepreneurship programme on this model, and teachers will showcase their own experiences as part of the training.

Founder and head of the school, Andy Adcroft, says the goal is to create a “new generation of digital entrepreneurs that we call the Disrupters”.

These are people who will transform learn methods

Andy Adcroft and Gavin Whichello discuss the new programme

‘OVERLOOKED' ADVANTAGES OF APPRENTICESHIPS COME TO LIGHT AS UK INITIATIVE GETS TRACTION WHITEHAT, a tech start-up promoting apprenticeships as an alternative to university, has announced a successful £12.8m ($16m) fundraising effort.

WhiteHat has more than 250 employers — including BP, Facebook, Salesforce, Publicis, Santander, Kantar, Bulb and Clifford Chance — participating in the programmes. The Series A round was led by Index Ventures, with participation from Lightspeed Venture Partners and Salesforce Ventures.

The funding will open the intiative to employers looking to plug their skills gap, diversify their hiring policy, and attract and retain employees. Currently headquartered in London, WhiteHat hopes to expand across the UK. Founded in 2016, WhiteHat matches ambitious nongraduate talent to professional services and digital roles, then delivers innovative and jobrelevant applied learning over the course of apprenticeships.

The company says 1,000 people apply to join the apprenticeship programmes each week.

Many employers are ditching degrees as the prerequisite for employment, tapping less traditional talent pools. With the rising cost of higher education, the opportunity is proving popular with young people.

Euan Blair, co-founder and CEO of WhiteHat, described the initiative as “the future of work and education”. Companies based in England with a payroll of more than £3m a year can take advantage of the Apprentice Levy for funding.

Apprenticeships are available in digital marketing and social media, software development, project management, data analysis, customer success,

A white hat, not a logo... accounting and leadership, and management.

Applied learning is delivered by WhiteHat through coaching sessions and access to content from partnerships with providers such as General Assembly, Flatiron School, Mind Gym and Grant Thornton.

Participants can join online and offline communities with other apprentices.

WhiteHat has some 750 apprentices, 65 percent of whom are from black and minority ethnic (BAME) backgrounds.

It recently launched its free Coding Summer School for young London women pursuing careers in software engineering.

Ambitious and talented young people are often overlooked by employees because they don't have a university degree, believes Danny Rimer — partner at Index Ventures and new board member of WhiteHat. “The high level of interest from employers is a reflection of the urgent need for talent,” he said.

Helmut Schuster, HR director at BP, described it as “a great concept”, and added: “The maturity, drive and passion exhibited by some of the apprentices blew me away.”

Emma Bond, global lead of Entry Level Hiring, Kantar, said the company wanted to develop a workforce that represents the population. “Inclusion, diversity and social mobility are important,” she said, “and apprenticeships are a way to do this.”

Business Vision Summer 2019 Issue • www.bv.world

and attract attention in a less conventional way.

“University should be a lifechanging experience,” he says.

“If you leave the same person you were when you arrived, we have done it wrong.”

Adcroft knows what it is to be judged by a post code. “It's an unfair judgement,” he says, “and doesn't reflect the individual's capabilities and strengths.

This must change. Equality of opportunity should be a running theme in all areas of education and business.”

Gavin Whichello, visiting professor and founder of leading training provider Qube Learning, also comes from a background with few opportunities.

“Growing up in south-east London,” he says, “I went to a grammar school but didn't fit in. I went on to spend time working on building sites, but it was ambition that finally drove me to gain a degree and pursue a career in the computer science industry.

“Having trained as a teacher and worked in schools in London for four years, I became frustrated that brilliant pupils from poorer backgrounds were still leaving with no future.”

The SurreyIDEA Disrupters will be active participants in their futures. “We aim to change lives,” says Whichello. “Great entrepreneurs are willing to take risks and learn from their mistakes. If you aren't getting it wrong, you won't know how to improve.”

SurreyIDEA was inspired and developed from Surrey Business School's Young Person's University programme, which has run at the school every July since 2015. The Year 12 and Year 13 students who attend each year were often considering droppingout after A-levels, but after a week with Surrey Business School most went on to apply to university — and usually got in. * Contact details: Phone: 01483-686-323; Email: surreyIDEA@surrey.ac.uk; Twitter: @SurreyIDEA

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Investing in staff can pay major dividends — in all sorts of unexpected ways

By ALIYA VIGOR-ROBERTSON ALONG with his famous “You can have it in any colour as long as it's black” comment, Henry Ford is noted for these words: “The only thing worse than training your employees and having them leave is not training them and having them stay.”

Wise words — but in 2019, employee training remains low on many companies' priorities list.

A study by Totaljobs found that two in three workers had left jobs because of a lack of training and development opportunities — and nine in 10 wanted their employer to do something about it.

Training programmes bring many benefits which can ultimately enhance the business.

But it needs to be more than a box-ticking exercise. Specific, targeted training programmes are the means to improve staff capabilities.

Research shows that a third of UK workers don't feel qualified to do their job, and more than half don't think their their co-workers are either. What's wrong with this picture? Are managers failing to pick up on the teams' needs, or struggling to address them? Or is it that staff are unaware of what training is on offer, or unsure which skills they need to develop?

Experts believe that companies should start with a basic backbone of training focused on IT and refresher skills courses, then identify other areas in need of development.

Desirable skills can change over time, so it's important to regularly review that focus and ensure that training is relevant.

If an employee wants help with

On-the-job training should be encouraged presenting, managers should identify whether that involves pitching, telling the brand story to the audience, or simply overcoming public speaking nerves. All fall under the umbrella of presentation training, but bring different results.

Communication is key, and having an honest conversation with employees about where they need help, and why it will help them, is a logical step. Investing in external training can be expensive, and those undertaking training programmes need a clear understanding of why they are there, and what the objectives of their learning experience are.

On-the-job training should also be encouraged, with the goal of sharing internal knowledge and experience.

Feedback following a pitch or presentation can help employees to recognise what went well and what didn't.

Creating opportunities for teams

to share their knowledge can be an inexpensive way of boosting relevant knowledge. It can be hard to make the direct connection between the cost of training and its value and success. One gauge is the amount spent on training over a single year compared with the amount of business converted, or income from new clients. Another approach is the Kirkpatrick model of evaluation, which looks at four key areas: reaction, learning, behavioural change and organisational performance.

It's also vital that businesses receive feedback from staff on how they found the training, and what everyday impact it's had.

Management can then revisit the results further down the track.

There is a wider impact too: companies that take care of their employees will ultimately build a better reputation — and become a more desirable place to work.

Win-win, really…

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Tech sector recruitment: who to woo, and how to ‘wow' in this fast-growing industry

By ADAM GORDON A 2017 STUDY by LinkedIn found that tech and software were the fastest-growing industries for millennials, while sectors such as government, retail, and oil and energy saw the biggest drops.

Pressure is growing on these more traditional sectors to recruit more effectively. Companies in some of these industries are taking a more creative approach to recruitment.

Nordea, the largest Scandinavian management services company, hosted a fashion show in Denmark to appeal to a new generation of talent. The aim of the event was to show that finance could be as innovative as tech.

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Companies have been using the same recruitment strategy since 1999 But what about companies in other sectors? Why are so many businesses struggling to compete with the technology industry — and what can they really do about it?

Rewards and incentives are probably a good place to start.

Tech giants such as Amazon and Google are renowned for offering new talent a range of modern perks, including flexible hours and free lunch options, which many candidates find more appealing than traditional bonuses.

In most cases, however, traditional industries like finance have not matched the creative benefits on offer from these players, with many relying on bonuses and pay-rises instead.

The problem, though, is that financial perks are no longer enough if the job is seen to be lifeconsuming.

In a 2017 CNBC poll of 4,000

Looking for a job? Fashion ‘can be as appealing as tech’ according to Nordea

As more and more new talent is snapped-up by the tech sector, other industries will fall behind without effective recruitment strategies. Productivity can suffer if extensive training and supervision are needed.

Rewards and incentives are probably a good place to start Poor hires can lower staff morale, as colleagues start to resent the fact that salaries are the same — but the output is not.

The good news is that there is still a lot that businesses can do to help attract relevant, engaged candidates.

For a start, employers can now use automated solutions

that enable them to rival tech companies in finding recruits.

Talent acquisition software such as Candidate.IDs is designed to revolutionise the search for good team members.

Businesses can now use sophisticated, real-time analytics to measure a candidate's desire to work for the company. The system is based on variables such as the frequency of visits to the company's website and the corporate interest in the fields of research, white papers and announcements.

Companies can stay one step ahead by learning what other roles candidates might have been considering in their search for employment.

Candidate engagement can be greatly enhanced by using these insights as a means to deliver personalised communication that is relevant to the different stages of the application process, and to each candidate. *Adam Gordon is CEO and co-founder of Candidate.ID

Business Vision Summer 2019 Issue • www.bv.world

US millennials and Gen Z-ers, just 10 percent were interested in careers in finance, a path often associated with long hours, as well as high salaries.

The same poll revealed that a third of financial services employees felt they had to sacrifice work-life balance to work in the industry.

Another problem is that most companies have been using the same recruitment strategy since 1999 — which explains why many candidates aren't impressed.

A generic online vacancy post, once the standard pathway to begin the recruitment journey, is now often met with apathy from potential recruits.

Parameters set for many vacancies can often be too rigid.

It has been estimated that 80 percent of US machine-learning engineers with PhDs choose to work at Google or Facebook.

And yet many engineering companies still insist on setting PhD as a minimum requirement — and some candidates are being overlooked.

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One in five workers would jump ship for better benefits package: perks a key issue BENEFITS packages may be worth as much to the companies offering them as they are to the workers on the receiving end, a new study shows.

With the UK unemployment rate at its lowest since 1974, the report by benefits solution company Benni suggests benefits are a key bargaining chip when it comes to attracting and retaining staff.

BETTER PACKAGE One in five employees admitted they would consider moving jobs to get a better package, according to the recent War For Talent report.

More than a quarter of Millennials canvassed said they had either left, or thought about leaving, a job solely because of a better employee benefits package.

That figure fell to 11 percent for Baby Boomers. And 24 percent of Millennial respondents said

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Split payment options could make all the difference they would consider quitting their job if they discovered that a colleague was getting more or better benefits; 17 percent of Baby Boomers agreed.

The survey of more than 2,000 UK workers showed benefits were a factor in retention too, with 16 percent of employees including the benefits package in their three key factors when choosing a position.

About 60 percent of employees receive benefits and perks in

some form, but there were big differences across age groups. Gen Z (under-22s) receive the most, at 73 percent; Baby Boomers (aged 55-73) reported receiving the least, at just 44 percent. Building the right benefits package could become more important in the future.

LIFESTYLE AND HEALTH The most sought-after benefits are a mix of lifestyle and health perks at a time where autoenrolment has encouraged employees to contribute to pensions.

They are also prepared to contribute towards benefits that matter to them: specifically when it comes to health benefits.

For men and women of all ages, across salary bands from £15,000 to £55,000 per annum, the top three benefits that they'd be willing to contribute towards include private medical insurance, critical illness cover and life insurance.

WIDE RANGE OF BENEFITS “Given the wide range of benefits and perks available, many employers may be left feeling they're simply not able to compete,” a spokesperson for Benni, Kyle Addy, said, commenting on the report. “It's encouraging to see that so many employees are prepared to make a contribution towards benefits like health insurance.”

Almost one in five of the people surveyed already fund, or part-fund, the benefits they receive.

“So split payment options are well worth considering as part of an attractive benefits strategy,” is the recommendation given by Addy.

UK BUSINESSES were feverishly taking steps to become compliant with VAT-return legislation as the deadline approached earlier this month.

But Intuit QuickBooks says the results of its first Making Tax Digital (MTD, repurposing the government's acronym for Month To Date) survey used a “sentiment tracker”. The tracker showed an increase in positive mood as firms contemplated the benefits of digital assistance, it says.

Commenting on the deadline for the first filing of VAT returns under the Month To Date system, Daniel Fallows, director at Gorilla Accounting, said those not on top of transitioning from paper-based processes could incur a default surcharge, which will be in place until April 2021.

“After that time, will be replaced by points-based latesubmission penalties and late payment penalties,” he said. “(Late) submissions must now be made through third-party software such as Freeagent and

can no longer be done through the HMRC website, where an MTD submission is required.”

QuickBooks is touting its own MTD product suite, including Bridging Software. The first public demo of SmartCheck took place during a recent tax expo.

SmartCheck helps accounting professionals and small businesses save time by identifying common mistakes in VAT returns.

INTELLIGENT SOLUTIONS SmartCheck, currently in beta, generates intelligent solutions to common issues and problems.

SmartLook is a virtual customerservice solution using video technology, and available soon is Smart Notifications, a system that notifies accounting professionals when their clients need to file for VAT. Fallows agreed that digital help was vital. “If you have what the government calls a ‘reasonable excuse' for failing to pay in a timely manner, you may be able to avoid the surcharge,” he said, “but because HMRC doesn't have a list

of reasonable excuses, they will operate on a case-by-case basis.”

That was likely to be a lengthy process, and one best avoided, he added.

Nick Williams, director of sales UK at Intuit QuickBooks, said the transition to MTD was never going to be without its stumbling blocks.

“It is pleasing to see increasing numbers realising the time, efficiency and cost-saving benefits that digitisation can bring.”

One of the disadvantages for some is slow internet connectivity.

“Only one in four rural homes has access to broadband speeds of over 10 megabytes per second,” he said, “and it is easy to see how some may struggle with the new online system.”

The biggest concern was confusion among contractors and businesses with regards to what is expected of them following the rule-change.

“Seeking professional advice is the best way to ensure compliance with the new system and avoid any late penalties.”

Business Vision Summer 2019 Issue • www.bv.world

VAT goes digital, and not all UK enterprises are compliant

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A healthy attitude to safety: it starts in the boardroom, but it doesn't end there...

DAVID TOWLSON, head of qualifications and assessment at an international examination board for health and safety, discusses why this is an issue for the board THERE are clear business drivers for improving health and safety, and professionals in the area will be familiar with the potential benefits.

But for those at the top of the business hierarchy, competing priorities can mean that their focus on the issue is limited.

When I was approached with the topic of this article, my first thought was to substitute the words “boardroom decision” for “boardroom issue”. Many health and safety decisions are delegated

Good H&S policies can help when tendering outside of the boardroom, and it is a responsibility that (in some respects) falls to everyone in the business.

You don't have to be a health and safety professional to lead, or influence, positive change.

In the fast-paced world of business, the focus is often on the product or service, price and promotion: it's all about growing the business. Yet protecting the business, its people and its assets is an issue that should not be forgotten. Statistics show that up to 40 percent of businesses hit by major interruptions or disasters never fully recover.

Properly managing health

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Properly managing health and safety risks can contribute to continued growth

Airman 1st Class Rebecca Van Syoc, US Air Force

Some board members will profess ignorance of the field, but it’s their responsibility to be informed with the issue if those higher up don't show commitment.

Boards have the power to allocate resources and responsibilities for health and safety.

By making this a key focus, you will become better informed about potential health and safety implications — positive and

negative — of decisions made throughout the organisation. *David Towlson worked as a health and safety practitioner before moving into training and education. For more information about the NEBOSH HSE Certificate visit: www.nebosh.org. uk/hsl

HOT WOMEN IN THE WORKPLACE? IT MEANS BETTER PRODUCTIVITY! IT'S A common source of conflict, anywhere in the world: where should the office thermostat be set?

Scientists have pitched in to the debate by isolating gender difference as part of the problem.

They have found that women's brains work better at higher temperatures. Men, on the other hand, work better when it's cooler.

The findings of a study conducted in Germany were recently published in the journal PLOS One. The study tested the ability of 500 men and women to perform a series of tasks at different temperatures. At higher temperatures, women perform better on maths and verbal tasks… but the reverse was found to be true for their male counterparts.

But women retain the upper hand on the air-con controls; their performance increased significantly in warmer temperatures — to a greater extent than the relative drop in men's performance.

“Our findings suggest that gender-mixed workplaces may be able to increase productivity by setting the thermostat higher than current standards,” the study concluded.

Business Vision Summer 2019 Issue • www.bv.world

and safety risks can contribute to continued growth, along with knock-on benefits: health and safety (duh), compliance with legislation, a positive work culture, and increased profitability (fewer accidents means less expenditure).

Good performance in health and safety can win more business when tendering, too; organisations will look for indicators of quality, as well as cost, in their decision making.

Some board members will profess ignorance of the field; but as a board member, it's their responsibility to be informed.

Not least because, in 2016, new sentencing guidelines for health and safety, corporate manslaughter and food safety and hygiene offences came into force.

This doesn't mean everyone has to be a health and safety expert, but it does mean knowing enough to at least be able to ask the right questions, and where to get advice.

Each board member plays a key role in the future of their organisation. They need to make health and safety a key part of their strategic agenda — employees cannot be expected to engage

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.W O R L D Awards 2019 Summer announcement highlights

AN INVITATION TO VOTE Readers are cordially invited to vote in the Business Vision (BV) Awards Programme.

BV seeks out candidates with outstanding corporate achievements but all eventual winners will have convinced the judging panel that they have the vision to maintain and build on their success well into the future.

Visit our website www.bv.world/awards to place your vote or email us at award@bv.world We will send you a copy of the nomination form.

The information you provide will be used by the BV judging panel but not shared with third parties. As a small token of our thanks you will be entered in a free draw for a one-year complimentary subscription.

No vote is wasted. Your recommendation will receive our full attention.

Active Capital Reinsurance Ltd — Best Alternative Risk Transfer Solutions | Latin America 2019 OVER the past decade, Active Capital Reinsurance's innovative client-centric focus and strong due diligence have opened ART (Alternative Risk Transfer) markets in more than 25 countries in Latin America and throughout the world. The company, led by seasoned insurance experts and backed by a team of disciplined and specialised professionals, was an early ART advocate and now spreads the word globally through conferences and presentations.

Based in Barbados with strategic offices in London, Madrid, Miami, and Panama City, the company is pushing for increased capitalisation and growth through regional expansion and diversification across its risk portfolio. The BV judging panel points to the organisation's excellent investment rating as final proof: Active Capital Reinsurance Ltd is the worthy winner of the 2019 Best Alternative Risk Transfer Solutions (Latin America) award.

Barclays Bank of Botswana Limited — Best Bank Governance | Botswana 2019

Galp — Best Investor Relations Team | Europe 2019

GALP is a Portuguese integrated-energy company that develops profitable and sustainable businesses. Oil, gas and power remain at the core of its high-performance portfolio, and it's developing low carbon and new business solutions to capitalise on current market trends. Galp attributes its strong financial track record to its strategic growth plan, which prioritises and optimises the synergies created through its integrated international operations. As befits an organisation of this calibre, Galp fields an exemplary investor relations team which provides a very clear picture of the company to investors. The experienced, responsive and talented team is headed by Pedro Dias. The company operates in 11 countries and exports products to over 50 nations worldwide. The BV judging panel believes that, with a market capitalisation of over €12.4bn, Galp projects confidence and competence. The judges congratulate Galp on its 2019 award win — Best Investor Relations Team (Europe).

Business Vision Summer 2019 Issue • www.bv.world

FOUNDED in 1950, Barclays Bank of Botswana Ltd is one of the country's oldest corporate citizens. Since its inception, the bank has charted a course that aims for stakeholder engagement in all significant decisions.

Barclays Botswana's stakeholder network includes clients and colleagues, shareholders and regulatory boards, and the communities in which it operates. As more non-traditional banks emerge to tend to Botswana's population of some two million people, Barclays aims for collaboration over competition to maximise the positive impact of a more financially inclusive society. The bank partners with numerous non-profits to support educational, entrepreneurial, and environmental initiatives. It is currently rebranding and will shed the Barclays name by 2020, to be replaced by the title of its new parent company, Absa Group Limited. The BV judging panel congratulates Barclays Bank of Botswana Limited, winner of the 2019 award for Best Bank Governance (Botswana).

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LanzaTech – Most Innovative Biotech Team | Global 2019

ACETOGENS are among the oldest living organisms – and they play a major role in the global carbon cycle, accounting for around 20 percent of the planet's fixed carbon. A more detailed understanding of these little blighters is a step towards fighting climate change, and New Zealand gas fermentation company LanzaTech is on the case – starting with rabbit poo. LanzaTech's acetogen was discovered in rabbit droppings, and from there it was isolated and brought to the lab. Today the LanzaTech acetogens ferment industrial waste gases from process industries such as the steel and refining sectors. With a new computer model, the company can actually design useful microbes. LanzaTech's breakthrough has been hailed by academics as having “the potential to transform the way we produce chemicals and fuels”. The BV judges have precious little knowledge of microbes, but they know a go-ahead firm when they see one – and understand the relevance of this research in the fight to stop climate change. The judges were unanimous in presenting LanzaTech with the 2019 award for Most Innovative Biotech Team (Global).

Acadian Asset Management (UK) Ltd — Best Investment Management Services Provider | Europe 2019 AT ACADIAN Asset Management, the focus is on providing solutions rather than pushing products. Founded in 1986, Acadian has headquarters in Boston and affiliates in London, Singapore, Sydney, and Tokyo, serving more than 500 institutions in 25 countries and managing around $95bn in assets. The firm draws strength from a comprehensive range of capabilities and an investment approach that's transparent, client-centric, and quantitative. Acadian assesses all factors — including a robust suite of environmental, social, and governance factors — through the sound economic rationale of producing positive long-term returns.

The firm has an open-door policy on communication and collaboration, sharing forecasting models and processes to attract new business and encourage positive change in the industry. The BV judging panel has no hesitation in declaring Acadian Asset Management (UK) Ltd as the winner of the 2019 award for Best Investment Management Services Provider (Europe).

Gate Capital — Best Corporate Financial Advisory Team | UAE 2019

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RELATIONSHIPS form the bedrock of Gate Capital, established in 2009, the Dubai mergers and acquisitions advisory firm with a solid and sustainable track record in corporate finance. Gate Capital has cultivated a network of relationships across the MENA region, with a team well versed in strategy, law, finance, analysis, and communication. Behind the team is a network of investors and institutions from a range of industries and geographies, enabling Gate Capital to monitor markets and identify opportunities that precisely match client's needs. Gate is a deal-maker at heart, by leveraging its extensive network throughout the MENA region and globally to bring parties together and execute transaction effectively. Over the past 10 years, it has executed complex deals and innovative funding structures worth more than $800m and is currently working on a total of 31 deals with a total value of over $2.4bn. The BV judging panel is pleased to present Gate Capital with the 2019 award for Best Corporate Financial Advisory Team (UAE).

Vakufska Banka — Best Customer-Centric Banking Team | Bosnia & Herzegovina 2019

QUALITY service requires quality staff, and Vakufska Banka has that one covered with its team of knowledgeable and committed professionals. The bank boasts a strong financial and logistical structure with branches across Bosnia and Herzegovina under the stewardship of a competent leadership team. Vakufska last year welcomed a new CEO, Denis Čivgin, a 20-year veteran of banking management. He took on his role with gusto, optimising processes and restructuring management to enhance cost efficiency and improve products and services. A combination of these efforts and an engaged workforce last year delivered the bank's highest profits in 10 years. For this team-based and client-driven corporate culture, the BV judging panel declares Vakufska Banka the winner of the 2019 Best Customer-Centric Banking Team (Bosnia & Herzegovina).

GUIDED by its strong values and thoughtfully envisioned corporate governance framework, Tamer Group has instilled a sense of fair game when forming relationships with all its stakeholders; relationships that promote trust, commitment, and foster constant development.

The sound principles of ethical professionalism, dependability, and innovative quality of service have been governing the operation of the business since its formation in 1922. These principles have pathed the journey of Tamer's success, positioning it as the renowned Saudi healthcare business and the trusted partner of choice for leading brands in various industries on a regional and an international level.

Tamer's 360-degree feedback approach has facilitated the process of creating a knowledge-

sharing organisation, where the focus is on building the capabilities of every talent, away from bureaucratic and confining leadership. With a workforce of 3,600 professionals, Tamer cultivates a flexible and collaborative environment that gives talent the confidence to flourish, lead, and take accountability. This high sense of empowerment has enthused the robust relationships that Tamer holds with its customers today, and will form an excellent foundation for prospective businesses in the future.

Additionally, the corporate governance framework at Tamer extends to embrace giving back to the community as an essential part of being a responsible business. From hiring talents with disabilities to providing scholarships to further employee's professional development, and from partnering with regional hospitals to increase awareness about stressing health issues to rewarding high achieving students with full scholarships; Tamer has been demonstrating nothing but an exemplary socially responsible business.

Therefore, and without hesitation, the BV judging panel declares Tamer Group as the 2019 winner of the Best Corporate Governance (Middle East) award.

Readers are cordially invited to vote in the Business Vision (BV) Awards Programme.

BV seeks out candidates with outstanding corporate achievements but all eventual winners will have convinced the judging panel that they have the vision to maintain and build on their success well into the future. Visit our website www.bv.world/awards to place your vote or email us at award@bv.world. We will send you a copy of the nomination form.

Business Vision Summer 2019 Issue • www.bv.world

Tamer Group — Best Corporate Governance | Middle East 2019

The information you provide will be used by the BV judging panel but not shared with third parties. As a small token of our thanks you will be entered in a free draw for a one-year complimentary subscription. No vote is wasted. Your recommendation will receive our full attention.

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KAMCO Investment Company — Best Wealth Management Team | GCC 2019

KAMCO Investment Company is an industry leader that seeks to secure the financial future of its clients through enhanced returns and conscientious wealth preservation. Founded in 1998 in Kuwait, KAMCO counts its talented team of experts as the driving force of the company — with leadership that inspires dedication and fosters innovation, and a workforce that embraces vision and initiative. Clients trust KAMCO as a reliable and competent partner in the pursuit of wealth creation and management. The comprehensive guidance framework established by KAMCO leadership empowers employees to strengthen the financial health of clients with rapid response and insightful advice. The consistent values and standards shown throughout the company — from executive officers to administrative assistants — convinced the BV judging panel. The judges congratulate KAMCO Investment Company for winning the 2019 award for Best Wealth Management Team (GCC).

NextEra Energy — Outstanding Contribution to Cleantech | United States 2019

NEXTERA aims to usher-in an energy age that is clean and affordable. Global supply challenges are being overcome with sustainable energy solutions that bring benefits for all. NextEra is the world's largest generator of wind and solar power, and the top capital investor in America's energy infrastructure. It is an industry leader in effective CO2 emission-reduction strategies, and NextEnergy has dedicated more than $85bn over the past decade to infrastructure investments. Another $40bn has been earmarked for investment through 2020. Sustainability is good for business as well as the environment: NextEra Energy has outperformed 79 percent of companies listed in the S&P 500 Utilities Index over the past 10 years. The BV judging panel has no hesitation in presenting NextEra Energy with the 2019 award for Outstanding Contribution to Cleantech (United States).

Rio Tinto — Outstanding Contribution to Sustainable Mining | Global 2019

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MINING giant Rio Tinto has been around for almost 150 years and understands the need to constantly evolve and adapt. The UK company was quick to embrace sustainability solutions, and in 2018 Rio Tinto refreshed its strategy to align with UN´s Sustainable Development Goals. In the past year, it launched a partnership with Alcoa, the world's eighth-largest aluminium producer, to develop a greenhouse-gas-free smelting process. It has also moved away from fossil fuels by selling-off the last of its coal assets. It is the only major mining company to have achieved such a transformation. This bold commitment impressed the BV judging panel, which has conferred on Rio Tinto the 2019 award for Outstanding Contribution to Sustainable Mining (Global).

HSBC — Best Bank Governance | Europe 2019

GLOBAL banking giant HSBC follows a comprehensive set of policies and systems that ensures sound governance. HSBC has a presence in 66 countries, with a network covering Europe, Asia, North and Latin America, the Middle East and North Africa. It serves more than 39 million customers and employs around 235,000 people. HSBC strives for the highest standards of governance and has made significant progress towards its ESG goals. The bank has shored-up its digital defences with AI-powered tools to detect and deter financial crime. It has stepped-up its environmental game, too, hitting ESG targets and influencing international thinking on climate change. HSBC solicits customer feedback and uses the data to fuel the continuous improvement of its products and services. The BV judging panel congratulates HSBC, winner of the 2019 award for Best Bank Governance (Europe).

LATAM Airlines — Best Value Creation Airline | Latin America 2019

Fluence Corporation — Best ESG Water CleanTech | Global 2019

THE UNITED Nations identified sustainable water management as a critical global development goal and has charged that everyone — from individuals and enterprises to governments — pitch in. Headquartered in New York, Fluence Corporation specialises in decentralised water and wastewater treatment solutions, with over 7,000 project references in 70 countries. Fluence deploys the latest water treatment technology to create fit-to-order, end-to-end solutions that deliver lasting economic and environmental benefits for municipal, industrial, and commercial clients worldwide. The company's expertise ranges from compact, decentralised units and custom-designed plants to best-in-class wastewater reuse applications and waste-toenergy technologies. From the Americas to Europe, the Middle East, China, and Africa, Fluence operations aim to extract maximum value and utility from valuable resources. The company realised a growth of over 70 percent in 2018 — leading the BV judging panel to a clear decision: Fluence Corporation wins the 2019 Global award for Best ESG Water CleanTech.

Business Vision Summer 2019 Issue • www.bv.world

AT LATAM Airlines headquarters in Santiago, Chile, there's cause for celebration: 2018 proved to be the company's most lucrative year since its foundation. LATAM – the leading airline of Latin America – brought in a net income of $182m from its passenger and cargo transport services and loyalty programmes. The group has a flight network covering 140 destinations in 25 countries throughout Latin America – in addition to international operations in the US and Europe, the Caribbean, Oceania and Africa. LATAM employs more 43,000 people worldwide, and transports about 67 million passengers each year with its 322-strong fleet of modern aircraft. The BV judging panel cited the group's inclusion on the Dow Jones Sustainability World Index as the deciding factor in its decision: LATAM Airlines is the winner of the 2019 award for Best Value Creation Airline (Latin America).

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PAC Capital Limited — Best Capital Markets Team | Nigeria 2019

PAC Capital aims to be a partner to its clients, not just a financial advisor and fund arranger. Its team relishes the opportunity to help people realise their long-term financing needs and growth plans. As the investment banking arm of PanAfrican Capital Holdings, PAC Capital aims to foster investment activities and economic growth throughout the African continent. The firm is headquartered in Nigeria, with strategic offices in Kenya and Ghana and key multinational partnerships across the African market. PAC Capital's strong network of alliances has enabled the team to develop a peerless suite of borderless capital solutions, including equity and debt capital markets and advisory, as well as specialised finance. The firm's track record speaks for itself, and with on-going deals totalling around $1bn in the pipeline the BV judging panel has no hesitation in naming PAC Capital Limited as the winner of the 2019 award for Best Capital Markets Team (Nigeria).

Unilever — Best Global Marketing Strategy | 2019 THE Unilever group produces some of the world's best-known consumer goods — items found in 98 percent of UK households and used worldwide by two billion people every day. The company distinguishes itself with the scope and quality of its products, and its sound marketing efforts.

Over the past two years, Unilever has spent around $337m on branding and marketing — and last year generated some $554m in savings, partly fuelled by investments in efficiency programmes. Unilever's marketing team has been praised for its campaigns promoting positive body image and self-esteem. New campaigns are fine-tuned using insights gleaned from a cloud-based data lake that's growing by 1.5 terabytes per day. The BV judging panel names Unilever the winner of the 2019 Best Global Marketing Strategy.

Credit Agricole — Best Retail Bank | Europe 2019

CREDIT Agricole is committed to its role as a co-operative financial institution, from administrators to members and clients, building lasting relationships based on trust and transparency. Credit Agricole serves more than 21 million customers and 9.3 million member-clients in France, with an investment philosophy tuned to financial, social and environmental priorities. The network includes 39 regional banks supported by 6,000 local agencies across France. Credit Agricole offers a full range of financial products — from current and savings accounts to credit lines and insurance — paired with customer service that inspires confidence.

The BV judging panel applauds the bank's go-ahead attitude and its sport sponsorships, which aim to strengthen communities. The judges declare Credit Agricole as the 2019 winner of the Best Retail Bank (Europe) award.

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Sogrape — Best ESG Brand Management Team | Europe 2019

SINCE it was founded in Portugal more than 75 years ago, wine producer Sogrape has demonstrated a talent for seeing first — and further. The company has been blessed with a family legacy that has aged in the cask.

Sogrape aims to become the most successful family-owned company in the world, close-knit yet global, where family spirit and team culture integrate with professionalism, commitment, and consistency. The leadership team, which is third-generation family, prioritises sustainable growth to ensure the company's longevity and agility. Sogrape leverages its human capital and environmental, social, and governance initiatives to boost growth internally and externally. The BV judging panel was intrigued by the company's ESG strategies, with traditions intact and well-rooted core values intertwined with innovation and adaptability. For its commitment to bringing sustainability strategies to life, the judges are delighted to present Sogrape with the 2019 award for Best ESG Brand Management Team (Europe).

Jamaica Public Service — Best Corporate Responsibility | Caribbean 2019

Punjab National Bank – Best Digital Banking Technology | India 2019

PUNJAB National Bank (PNB) has several reasons to celebrate. It has been rated as number one Indian state-owned bank in terms of digital transactions, and sixth nationally for its digital performance. In a vibrant country of India's size, receiving accolades such as these is a big deal. Punjab National Bank is fully committed to the Digital India initiative, and has a governmental score of 71 – the highest category of performance.

PNB's average of technical declines is just 0.83 percent of total transactions, the sort of achievement which caught the eye of the BV judging panel – along with those ratings, of course. There was no hesitation in declaring Punjab National Bank winner of the 2019 award for Best Digital Banking Technology (India).

Business Vision Summer 2019 Issue • www.bv.world

OVER the past century, Jamaica Public Service (JPS) has powered the country's possibilities and business activities. As Jamaica's exclusive utility provider, JPS provides an essential national service — but it views its role more as a development partner. The company has established a robust island-wide electricity grid and a comprehensive corporate social responsibility (CSR) structure that fuels the country's economic growth, advances its 2030 vision plan, and supports global sustainable development goals. The JPS Foundation serves as its CSR channel for community outreach and development projects. JPS aims to improve lives and strengthen communities through strategic partnerships focused on science and technology education, environment and energy management, and community empowerment. The company has already invested around $40bn in efforts to diversify its fuel mix for a more sustainable — and competitive — future. The BV judging panel believes the roadmap is well-laid and JPS need only stay the course. The judges congratulate Jamaica Public Service, winner of the 2019 Best Corporate Responsibility (Caribbean) award.

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Unsheathing the SABRE in search for future of aircraft

By RICHARD THOMAS CAST your mind back 30 years to the mid-to-late ‘80s when everyone was speculating about life in the year 2000.

Among the technical marvels proposed at that time was a spacecraft dubbed HOTOL. The name wass an acronym taken from its proposed capability for HOrizontal Take-Off and Landing.

The craft could have used conventional airports, but the wondrous thing about it was that for most of its flight time, HOTOL would have been orbiting outside the Earth's atmosphere with its engine in rocket mode. The attention-grabbing headlines at the time screamed “London to Sydney in 4 hours!” — and considering that 19 years past 2000, we still have to add a “2” in

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‘London to Sydney in 4 hours!’ front of that 4 — this was exciting news indeed.

HOTOL lost UK government funding in 1988, but its successor, Skylon, is taking shape — at least on the drawing board — and the most revolutionary part of the package, the jet/rocket engine, is currently under development.

It recently reached an important milestone following ground-based testing in Colorado.

The proposed Skylon

spaceplane will have two main uses. Firstly, it will be a SSTO (single-stage-to-orbit) vehicle for launching satellites and ferrying cargo to the International Space Station. The satellites will be destined for “low earth” (up to 2,000km altitude) to geosynchronous (36,000km) orbits.

The other, more exciting potential, harks back to its HOTOL heritage: the ability to transport 300 passengers anywhere in the world in just four hours. Including, of course, that journey from London to Sydney.

The engine for HOTOL was developed by Rolls-Royce, and in 1989 three of the engineers who worked on that engine left the company to found Reaction Engines Ltd. Their earlier work evolved to become SABRE — the

SABRE has a pre-cooler designed to take incoming air from 1,000 °C to -150 °C in 1/100th of a second

Synergetic Air-Breathing Rocket Engine.

Reaction Engines is based at the Culham Science Park in Oxfordshire.

In terms of innovation it's in a good neighbourhood, as Culham is also home to the UK's fusion power experiment, JET (the Joint European Torus).

It's the SABRE engine that's in focus at the moment. A major technical challenge has been to manage the temperature of the air flowing into the engine when it is in jet mode, inside the atmosphere. As the air enters the engine at supersonic speeds, it is massively and rapidly compressed.

That compression increases temperature to a level that would, if left unchecked, melt the engine's components — a new and unwelcome type of internal combustion. It's an extreme manifestation of the effect that makes your bicycle pump heat up in use.

To combat this, SABRE has a pre-cooler — a heat exchanger designed to cool incoming air from

1,000 °C to -150 °C in 1/100th of a second. The pre-cooler was tested at a facility in Colorado in April, where it successfully quenched the 420°C exhaust from an F4 Phantom fighter jet engine in less than 1/20th of a second. This made the team confident that the technology works, and would

Investment in REL had reached £100m by last April continue to work in scale to deal with the temperatures generated by supersonic flight (they're aiming for Mach 5).

The core section of the engine, which provides the thrust in airbreathing mode, will be tested next year. The design has passed its preliminary review by experts from the European Space Agency

(ESA) which has been brought in to audit the project. The next step will be to test the engine on the ground at a facility being built in Buckinghamshire, on a site with a long history of testing UK rocket projects, including Blue Streak and Black Arrow.

Reaction Engines and SABRE are proving attractive to some big investors. In 2012 the UK Government invested £60m, and in 2015 BAE Systems put in £20m.

Total investment in Reaction Engines reached £100m last April, with a £26.5m series B funding round. This included money from blue-chip investors Baillie Gifford Asset Management and Woodford Investment Management, as well as further investment from BAE Systems.

But the most notable investors at this stage were Rolls-Royce and Boeing, the latter via its Horizon X investment arm — its first investment in a UK company.

Reaction Engines CEO Mark Thomas described it as a significant milestone. “In addition to providing our largest round

Business Vision Summer 2019 Issue • www.bv.world

HOTOL lost UK government funding in 1988, but its successor is taking shape

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of private investment, these new partners bring invaluable expertise in both hypersonics and engine technologies with significant access to target markets”. Steve Nordlund, vicepresident of Boeing HorizonX, said Reaction Engines “unlocks advanced propulsion that could change the future of air and space travel”.

“We expect to leverage their revolutionary technology to support Boeing's pursuit of hypersonic flight,” he said.

Rolls-Royce also has a keen interest in the project. CTO Paul Stein said Rolls-Royce was increasingly pioneering new technologies through partnership and collaboration.

“We look forward to working with Reaction Engines and assisting with the development of their

technology,” he said, “and we plan to incorporate this technology into future products.”

Commenting on the British government's investment, Sam Gyimah (then the UK minister for universities, science, research and innovation) said it was a vote of confidence in Reaction Engines and its revolutionary engine.

“Boeing and Rolls-Royce will bring world-class expertise to the project ahead of its testing at Westcott, alongside the new National Space Propulsion Facility,” he said. “We are working with the sector to pursue new opportunities, develop technologies and infrastructure, and enable small satellite launch and sub-orbital flight from UK spaceports for the first time.”

The year 2000 is already history — but better late than never.

Skylon will be a single-stage-to-orbit vehicle for launching satellites and ferrying cargo to the ISS

Increasing demand for visas, UK PM calls for fast-tracking ‘An inflow of skills for the tech sector is vital’ are also high on the list.

First launched in 2014, the visa enables tech talent from around the world to work in the UK's digital sector, contributing expertise, creativity and innovation.

The scheme has experienced year-on-year growth; for the financial year 2018-2019 it saw a 45 percent increase, with a total of 650 applications.

Tech Nation is one of five designated competent bodies (DCBs) appointed by the Home Office for Tier 1 Exceptional Talent Visas. Tech Nation and the others endorse or reject applicants.

Each DCB is allocated 200 endorsement places per financial year, with the opportunity to draw upon a contingency pot of 1,000 additional places allocated by the Home Office in the event of

unprecedented levels of incoming talent.

Tech Nation endorsed roughly half of the applications it received for 2018-19, and exceeded its allocation of 200 by 63 percent.

The visa scheme received more than 1,650 applicants.

Caroline Nokes MP, former Minister of State for Immigration, described the tech industry as vital to the UK economy. “We announced the new start-up and innovator visa to enhance the UK's visa offer to leading international talent,” she said, “and I am determined to see this continue as we leave the EU and introduce a skills-based immigration system.”

Herman Komashko, digital engineer from Uzbekistan and visa recipient said the visa scheme had “a positive impact”.

“The freedom to work and move within the UK … is what allows us to experiment and understand where we can contribute the most,” he said.

In September, more endorsement applications will be evaluated for the start-up and innovator visa categories. * For more information, visit https://technation.io/visa/ startup-and-innovator/

The visa enables tech talent from around the world to work in the UK’s digital sector

Business Vision Summer 2019 Issue • www.bv.world

BRITISH Prime Minister Boris Johnson has called for a fast-track visa system to attract scientists to work in the UK. He is also removing the cap on Tier One visas for highly skilled migrants, currently limited to 2,000 a year.

Science groups have welcomed the move, but say research benefits won't make up for the damage caused by a no-deal Brexit.

It isn't known if the fast-track system will involve other sectors.

Britain has seen a rise in demand for tech visa applications for the fifth year running.

Britain's world-leading digital technology sector attracts talent from around the world.

Margot James MP, then Minister for Digital and the Creative Industries, said that an inflow of skills for the tech sector was vital for its continued growth.

“We are determined to ensure the sector has access to the talent that it needs,” she said.

India and the US lead visa applications from specialists in software engineering and development, AI and machine learning, fintech and the enterprise/cloud sector.

Nigeria, Russia, Canada, Australia, China and South Africa

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M49 the bear OK, so it’s a bear…

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A FUGTIVE brown bear named M49 hit the headlines recently for escaping from an electrified pen in northern Italy.

We don't usually feature bears in BV's Ten People slot, but M49 showed such grace under pressure, such entrepreneurial spirit, such innovation, that we thought we'd share his (or her; the bear's gender has not yet been specified) story. It is, in its own way, inspirational.

Our hairy hero was snared in the Trentino region of Italy. It was captured by authorities soon after it was spotted roaming about, and deemed a danger to humans and livestock. And fair enough, bears are known to bring down the odd jogger. In Canada, anyway.

But just hours after M49 was caught and penned, it found freedom by scaling three electric fences and a four-metre-high barrier.

Park rangers, aided by sniffer dogs, were hunting the animal shortly before this report was penned for the Summer issue of BV, so please check Google for updates. But at the time of writing, M49 was believed to be free once more, and wandering the Marzoil woods near Trento (Trentino is the province, Trento is the town, if you were wondering).

Trentino's governor, Maurizio Fugatti, gave forestry authorities permission to shoot our shaggy mate on sight, citing its ability to escape over a 7,000 volt electric fence as evidence of “how dangerous it is”.

But Italy's Environment Minister, Sergio Costa, thankfully came to the rescue: “M49's escape from the enclosure cannot justify an action that would cause its death,” he said.

And too right.

The message M49 is sending to BV readers? No matter how much the odds seem stacked against you, battle on!

Go M49!

Hal Williams

Get on the road...

...with BV motoring

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Red alert from UK's car industry as it ponders the threat of a no-deal Brexit A WARNING light is flickering on the dashboard of the UK car industry as it trundles helplessly towards the possibility of a no-deal Brexit.

The British Society of Motor Manufacturers and Traders (SMMT) has sounded the alarm after vehicle output fell to a fiveyear low in 2018, with just over 1.5 million vehicles produced – 50 percent down on 2017.

In recent days, the SMMT wrote to new Prime Minister Boris Johnson, setting-out the industry's immediate and future priorities.

These include a demand for support in the transition to zeroemission vehicles by investing in infrastructure, incentives and securing a giga-factory in the UK, making the UK attractive to investors, creating an internationally competitive business environment and ensuring the sector continues to enjoy preferential trade with critical markets around the world, including the EU. The letter — signed by SMMT CEO Mike Hawes — emphasises that a No Deal Brexit “is not an option”.

The SMMT says any new trade tariffs and supply chain disruption would hurt the industry at home and abroad, with eight in 10 British-made cars currently shipped overseas. The industry's

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Mike Hawes foreign sales – and job security – would suffer under a hard Brexit, the body says.

Hawes said “the risk of crashing out without a deal looking increasingly real” – and said damage from Brexit had already been done. He cited output, investment and jobs as areas which had been hard-hit.

The UK automotive industry was on “red alert”, Hawes added.

“Yet this is nothing compared with the permanent devastation caused by severing our frictionless trade links overnight, not just with the EU but with the many other global markets with which we currently trade freely.”

New car sales have fallen by seven percent, the decline in

manufacturing was the second successive year of falling output, and Hawes said thousands of jobs were on the line. “We urge all parties to do whatever it takes to save us from no deal,” he said.

The previous British Government had said it would seek the “broadest and deepest possible agreement that delivers the maximum possible benefits for both the UK and EU economies and maintains the strength of our world-leading automotive sector”.

The SMMT position refers to five priorities which it says should provide focus for the government in its negotiations: Single Market – The government must demonstrate how it intends to secure a future trade agreement with the EU that affords the automotive industry Single Market benefits Customs – It should prioritise the free-flow of automotive goods at the border to avoid costs, maintain competitiveness and support the just-in-time manufacturing process Talent – Government must address the needs of the automotive industry to recruit and access talent when assessing how the UK ends freedom of movement and implements new immigration controls Regulation – Government should demonstrate how existing automotive regulation fits within plans for the Repeal Bill and work through options for how future EU regulation affecting the UK automotive industry can be effectively implemented.

Trade – Clarity is needed on how the UK will treat existing EU Free Trade Agreements and those currently under negotiation.

FORD Motor Company recently recalled more than a million sport utility vehicles in North America for a suspension fault which “could increase the risk of a crash”.

The affected cars are 1.2 million Explorer SUVs manufactured at Ford's Chicago assembly plant between 2010 and 2017.

The company warns that “under certain conditions” the affected vehicles could suffer a fracture of the rear suspension toe link. That would affect steering control, and could increase the risk of a crash.

The conditions referred to are “frequent, full rear suspension articulation”, understood to mean “bottoming-out” the shock absorbers by using all their

No injuries are thought to have been caused by the issue available travel, although this could not be confirmed in an Internet search.

Ford dealers will remove and replace left and right and rear suspension toe links and align the rear suspension for affected customers.

No injuries are thought to have been caused by the issue, and the only report of an accident was one customer driving into a kerb.

But this is just one of the woes for Ford, which is also recalling about 1.5 million F-150 pick-up trucks for transmission problems, as well as some 2019 Mustangs and some Lincoln Continental, Nautilus and Navigator models (Lincoln is a division of the Ford Motor Company).

The cost of the Explorer recall alone is estimated to be $180m, making this an expensive episode for Ford, which late last year also recalled 1.3 million cars — including some Explorers and Focus models — for fuelling issues.

Some American Ford owners have claimed they were subjected to toxic levels of carbon monoxide because of that fuelling fault, and some are reported to be filing legal claims against the company.

Business Vision Summer 2019 Issue • www.bv.world

Another huge recall by Ford — and the resulting $180m bill will hit company hard

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Frankly speaking, this little Guzzi is worlds away from a twist-and-go Honda scooter

Moto Guzzi V7 that even that is slightly too much for the law — 52 bhp — but it should be easy enough to remap or otherwise restrict it. There are plenty of smaller capacity bikes, of course, but the nice thing about

Kawasaki Z650

getting a restricted bike is that once Frank has his full licence, he won't (necessarily) be tempted to upgrade to a bigger machine.

The Guzzi has an upgraded chassis, and they were already tight little machines. The pipes may be a little on the choof-choof side, but that's nothing that a couple of fruity mufflers won't fix. Shocks are well damped and the Special's cornering ability has won-over road-testers.

Guzzi owners of old became expert mechanics (with specialised skills in fixing roadside electrical problems), but all that has changed.

It has ABS and traction control (obligatory now) but retains that simplicity of throbby, burbling fun. Low-down torque is good... and it's just so damn cool.

The big challenge is getting the requisite £8,700 out of Frank's wallet. But if and when he listens to reason, I want a go on it.

Business Vision Summer 2019 Issue • www.bv.world

By HAL WILLIAMS A FRIEND of mine who commutes on a Honda 125 scooter is thinking about getting a “real” bike.

I've been encouraging him all the way — sorry, I despise twistand-go scooters — but my mate Frank is limited to an A2 licence.

The A2 category allows riders aged 19 or older (no worries there, eh Frank?) to ride a machine with 47bhp and with a power-to-weight ratio no higher than 0.27 bhp per kg.

The current apple of Frank's eye is the new Kawasaki Z650.

Nice bike, but it would have to be restricted, of course; the regular Z pumps out way too many ponies.

So why not go for something slightly less buzzy, with a greater cool factor?

I advised Frank to have a look at a Moto-Guzzi V-7 Special. I love the look of the little retro Guzzi, and I knew it had a slightly asthmatic power output for its lumpy 744cc engine. It turns out

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Tesla shuts showrooms and moves to online sales in bid to bring down Model 3 price TESLA is cutting prices and closing showroom doors in a dramatic bid to remain viable.

Most Tesla shops will close in favour of an online sales model to give the company the savings it needs to lower the starting price of its Model 3 from $42,000 (£35,492) to $35,000 (£26,400) — a six percent cut. Prices of the high-end Model S and Model X are also expected to come down.

Billionaire CEO Elon Musk said the move was the only way to “achieve the savings for this car and be financially sustainable” — a process he described as “excruciatingly difficult”. Tesla needs more sales of vehicles such as the Model 3 to survive.

A few of the 378 Tesla outlets around the world will remain open as information centres to

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showcase the products, but sales will now be almost exclusively internet-based. “It's 2019,” Musk is quoted as saying. “People want to buy things online.”

Musk hopes there is sufficient demand to sell half-a-million Model 3s at the new reduced price.

He has predicted a loss for Tesla in Q1 but expects a return to profit later in the year. Tesla's share fell three percent to $309.40 in after-hours trading following the announcement.

No mention has been made of job cuts as a result of the store closures, but in January Tesla said it would cut more than 3,000 positions — seven percent of the workforce — in a separate, unconnected drive for savings.

Some customers on the waiting list for a Model 3 have reportedly been waiting for as long as three years for their vehicles, but Tesla says these issues should soon be rectified.

Tesla needs more sales of vehicles such as the Model 3 to survive

Doppelganger sportsters with the looks and the badges… but none of the mechanical magic

By HAL WILLIAMS YOU only get one chance to make a first impression, they say, and nothing makes a statement like pulling up to your Tinder rendezvous in a Ferrari or a Lambo.

This is especially true in countries and cultures where it's all about appearances. In some Asian and South American nations, how you look is very often how you “are” — or at least how you are perceived by your peers.

The obvious problem, in notso-rich petrolhead nations, is that Ferraris and Lamborghinis don't come cheap. Fair enough if you're a Milan designer or a Parisian aristocrat with money to burn — the whole idea is to telegraph your wealth and style.

No surprise, then, that — as with knock-off Gucci and Prada on the streets of Ho Chi Minh or Shanghai — not all supercars on the streets in 2019 are what they seem. While there are plenty of

rich Brazilians, there are many more who can't come up with the asking price of a Ferrari — $140,000 to $450,000 — or a Lambo — around $200,000.

(We're talking used, here.) And it is to Brazil that this story takes us.

Police there have shut down a clandestine factory producing Fakerraris and Shamborghinis.

Yes, doppelganger sportsters with the looks and the badges… but none of the mechanical magic.

The cars were offered for sale on social media for $45,000 to $60,000 — still quite an investment, but a fraction of the price of the real thing.

The father and son owners of the workshop in Santa Catarina were arrested on “industrial property” charges. The photos provided by the police show eight rather dusty, half-built semisupercars, with uninspiringly drab colour choices.

Officials didn't say what sort of parts were used to build the

vehicles, but the badges and accessories at least had the look of the genuine article. The raid came following a tip-off from the Italian car companies themselves, and police are investigating how many of the knock-offs were made. There could be hundreds still screeching away from kerbs outside Sao Paulo nightspots.

But is there really anything wrong with this, as long as the makers fess-up about the counterfeit nature of the vehicles?

If a suitably high-performance chassis is mated with a pokey engine before being wrapped with a sleek new set of clothes, what's the problem…?

It isn't clear how the vehicles were advertised for sale, so it's hard to tell if this was fraud or just bold, lateral-thinking entrepreneurism.

I'd like to have a look at a finished one, out of interest.

Unfortunately, even the fakes would be out of my financial reach.

Business Vision Summer 2019 Issue • www.bv.world

Switcheroo ‘supercars' draw heat in Brazilian swoop

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EV NEWS ROUND-UP

By RICHARD THOMAS IT HAS been a busy year for electric vehicle manufacturers. · Tesla's Model Y, an SUV based on the Model 3, has been spotted “in the wild” for the first time. A prototype was snapped on a road in the US and a photo posted to Twitter by charging network company ChargePoint. · Tesla's Model 3 can now be ordered in Europe with a tow hitch. Weekend caravanners have no excuse not to ditch the internal combustion engine in favour of something less polluting. With the accessory fitted, the Tesla can pull up to 910kg. (So a small caravan, then…) · Following our article in the Autumn 2018 issue of BV covering Dyson's venture into the EV world, setting up research and development at an old airfield, more details about their plans have possibly been revealed in a new patent application.

As Dyson himself explained in an email to staff published by Auto Express, a patent doesn't necessarily lead to a commercial product — but at least we can say with a little more confidence how

Dyson’s plans have possibly been revealed a Dyson EV might look. · Bucking the trend towards small electric cars, the patent describes a seven-seat crossover car with 24-inch wheels and good ground-clearance. Dyson wrote: “This makes a vehicle suited to city life and rough terrain, but could also contribute to increased range and efficiency.

“It is important to keep this in perspective and remember that we do not always use patents or make products based on patents that we have filed.” · Fastest man on Earth Usain Bolt's company is already wellknown in the world of electric scooters, but its latest project is an electric four-wheeler. The $10,000 Nano — which you can reserve with a deposit of $999 for

late 2020 delivery — is a two-seater microcar designed for city use. It will come with a swappable battery pack. Alongside the car, Bolt will be launching an app that will allow owners to “car-share”. This can earn money for the owner, and the swappable battery pack will avoid the need to recharge. · If you read our Winter 201819 issue (sold-out, but still available on the website), you might remember our article on Formula E, the all-electric challenger in the world of Formula racing. The 2016 F1 World Champion Nico Rosberg recently said that he believed Formula E will drive the conversion to electric vehicles.

“Racing series like ABB Formula E promote e-mobility in such an awesome way — and make it look so cool, feel so cool,” Rosberg told Australian EV news website The Driven, “and this is important to help enhance the transition [to electric vehicles] and to get people to embrace it and to want to go try an electric car, experience it and maybe consider buying one.

“Clearly EV is the future. It's just a matter of time.”

Daniel.Cardenas via Wikimedia Commons 110

A Tesla Model Y spotted at an investor conference in June 2019

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