Force for efficiency by French Chamber of Commerce in Great Britain

I N F O french chamber of commerce in great britain the magazine for anglo-french business

february / march 2012 www.ccfgb.co.uk

in this issue

5 minutes with

Christian Porta, Chairman & CEO Chivas Brothers

success story

Pascal Aussignac, founder Club Gascon

Tech City

London’s Cauldron of Technology

Pierre-Yves Cros Digitalising Government

Cloud Computing Risks and opportunities

Cercle d’outre-Manche Latest Study

Arnaud Vaissié

editorial

President, French Chamber of Commerce in Great Britain, and Chairman & CEO, International SOS

Change of times, time to change

‘I

t was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity…’ so Dickens wrote in “A Tale of two cities”. Although Dickens was referring to the cities of London and Paris, the observation can surely never have been more relevant than today, and more importantly, to the state of relations between France and Britain. Six months ago, the two countries were closer in diplomatic and political terms than they have been for a generation. We recall that the first country Mr Cameron visited on his election was France and the first President he greeted was Mr Sarkozy. These greetings were designed to cement the tangible military relationships that have developed over the last period. Indeed, the countries took justifiable pride in their close and effective military partnership to dislodge Muammar Gaddafi and provide the groundwork for a democratic Libya. Things have changed on the political level, some have not. Today more than ever, contrasts and comparisons are very crucial to this issue’s Focus on ‘Information and Communications Technologies’ (ICT). We see here how the two countries differ in their approach to implementing ICT. France has a more developed national infrastructure than the UK, but much lower “buy-in” by the private person and small companies. The accomplished engineers in France have fashioned an impressively fast system for delivering the internet, but it is enjoyed primarily by the largest concerns. While Britain’s network is sluggish, hardly a company or person from Land’s End to John O’groats is without a computer and an email address. These two nations have the capacity to become greater by sharing their strengths. That is exactly what we try to do. Members of the Chamber have recently benefited from hearing some inspirational comments on national events from our distinguished cast of guest speakers, at a number of our flagship dinners and cocktails. These have included Nicolas Petrovic (CEO of Eurostar), Angela Knight (Chief Executive of the British Bankers’ Association) and Paul Deighton (CEO of the London Organising Committee of the Olympic & Paralympic Games). They all agree on the idea that today is a great time to change. We face a tough New Year with fortitude, in the knowledge that we are stronger working together under the auspices of the Chamber. I

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contents

issue 199 / February - March 2012

ICT: force for efficiency Pierre-Yves Cros puts theory into practice

5 minutes with Christian Porta

Lessons to learn from across the Channel

Paris hosts the 2011 Franco-British Business Awards

Banks and the crisis: Angela Knight puts both into context

Breaking News

Success Story

5 Minutes With...

Focus

10 This year’s elections under an economic cloud

12 Christian Porta, Chairman CEO Chivas Brothers

News in the City

15 Mr Draghi’s austere lesson 17 Taking private banking to a new level

News

19 GDF SUEZ sells a minority stake in hydrocarbon fields located in the British North Sea to Total 20 Inauguration of Air France’s first solar energy facility at Valbonne JCDecaux Airport wins digital screen advertising contract with Eurostar at St Pancras International station Fabergé’s historic return to London’s Mayfair and at Harrods 21 Business Solutions- Disneyland Paris awarded a Bronze MIMA in the best website category French Bubbles opens pop up champagne bar & Shop 22 easyJet launches fastest airline phone app Hermès wins ‘International Luxury Brand’ Award by Walpole 24 University education in the UK: paying the bill 26 UK Regional Review Managing Director: Florence Gomez Editor-in-chief: Nicolas Kochan Assistant Editor: Lawrence Joffe Corp Communications Exec: Hannah Medioni Graphic Designer: Prima Hevawitharane Advertising: David Lislet - Tel: (020) 7092 6651 Publications Assistant: Agnieszka Karch Subscription: INFO is published every 2 months. Printed by: Headley Brothers Ltd Cover picture: © Pascale Peyret photographe plasticienne +33 6 13 50 82 50 / pascalepeyret@wanadoo.fr

28 The “d’Artagnan” of London’s restaurant world

30 ICT: the surest way to attaining the Holy Grail of efficiency 32 A UK government driving for ICT leadership 34 Digitalisation has the power to effect change 36 Digital economy: reducing costs and refuelling growth 38 Lessons to learn from across the Channel… 40 Tech City: 21st century collaborative entrepreneurship 41 Three-fold applications for ICT 42 ICT: force for efficiency Pierre-Yves Cros puts theory into practice 44 BT’s record-breaking communications at the Games 46 Bringing intelligence to the railway 48 We need better infrastructure to keep up with our workload 49 e-Commerce: it’s time to talk shop 50 The logic of technology-driven business innovation 52 One click can take you there: networking today 53 Staying in tune with music fans 54 Welcome to the Cloud 55 Selecting the right package for adopting Cloud-based ICT Editorial Committee: Mike Alderton, Chrisanthi Avgerou, Danny Bermant, Guy H. R. Bondonneau, Mehboob Dossa, Raphaël Fainac, Mark Foster, Steve Little, Trevor Lampen, Anne-Sophie Monnier, Reginald Otten, Sarah Plans, Jonathan Tapp. Contributors: Mike Alderton, Danny Bermant, Guy Bondonneau, Nathan Boublil, Philippe Chalon, Eric Charriaux, Mehboob Dossa, Geraldine Fabre, Raphaël Fainac, Mark Foster, Bérangère Hassenforder, Samuel Hilton, Alan Holliday, Janis Kallinikos, Eric van der Kleij, Trevor Lampen, Thibault Lavergne,

56 Hazards in adopting latest technology 57 Social media in the workplace: to tweet or not to tweet 58 Beware the new technologies!

Culture

Wine Press

News @ the Chamber

60 What’s on? 62 Book reviews

66 68 69 72

New Members FBBA: Paris hosts a topical debate 2011 fbba winners’ profiles Arnaud Bamberger: Cartier’s Grandmaster of the luxury world 73 Chamber hosts dinner at The Balcon Restaurant 74 Banks and the crisis: Angela Knight puts both into context 76 Privacy and Data protectionit’s nothing personal! 78 F. Larquetoux: club’s new co-Chair, with a vision for entrepreneurship 79 Finding funds for the SMEs 80 A new direction in CSR: responsibility local? 82 Forthcoming events Steve Little, Anne-Sophie Monnier, Jon Mulholland, Julie Nash, Reginald Otten, Sarah Plans, Emmanuelle Ries, Louise Ryan & Jonathan Tapp Distribution: CCFGB members, Franco-British decision makers, Business Class lounges of Eurostar, Eurotunnel & Air France in London, Paris and Manchester. Editorial and Publishing Offices: French Chamber of Commerce in Great Britain Lincoln House, 300 High Holborn London WC1V 7JH Tel: (020) 7092 6600; Fax: (020) 7092 6601 www.ccfgb.co.uk

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Patron Members of the French Chamber of Commerce in Great Britain

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breakin g n e w s

This year’s elections under an economic black cloud The legacy of the crisis haunts leaders trying to create the feel-good factor among their electorates. These are key issues for France and the Unites States in the coming year

number of governments are facing crucial elections countenanced economic machinations linked to the in the coming year. They do so, under the greatest free-wheeling past. They were replaced by technocrats cloud of all – the very real threat of recession. This who could claim to understand the workings of the is the case of the United States, and it is the case of bond markets and the international capital system. Both France. Presidents in both countries were elected had formerly been linked with Goldman Sachs, the US during the good times, but both leaders are facing investment bank that advises many governments and challenges at a time when the economy has turned institutions. against them, indeed turned against the world. The Neither of these men was elected, and both will implications of this economic turnround on politicians only be tolerated as long as they deliver the key result, are extraordinarily ominous. which is the stability of their country’s economy, as they The reason for this factor in an election face the impending economic turmoil. It boils down to the now widely accepted is remarkable how little disturbance has The politician view that today’s politicians are judged greeted the departure of Papandreou and by their capacity to manage the economy. who can win Berlusconi; men who seemed loved when over markets If an army marches on its stomach, an they were in power and appeared to fight electorate votes by the amount of money is likely to be a hard when their countries were under in its pocket, by the spending power of more technocratic pressure from market instability. Yet, they character than the its currency, by the capacity to make and have both departed into oblivion. They borrow money, and by the ability to find heavily ideological have left their successors to take on the and retain jobs. This is the Realpolitik or paternalistic economic challenges. of peacetime politics. During war, when leaders in the past. All leaders in place in the course matters of survival are at stake, other of today’s instability have to confront leadership qualities are needed. the harsh reality, namely that financial Leaders during an economic crisis, when those markets have the power to determine the outcome, not desires for financial security are shaken, are required merely of prices, but also of politicians. The behaviour to be technical rather than charismatic. Both George of markets is a key factor, for example, in determining Papandreou of Greece, and Silvio Berlusconi of Italy the rating that an agency gives a country. If the market had the appeal of ‘fathers of the people’; both were sells a country’s bonds at a high price, the rating agency required to pay the price for their history of benign will take against the country and lower its grade. neglect of their economic woes. Lucas Papademos Standard & Poor’s downgrading of the French sovereign replaced Papandreou on 11 November 2011, Mario Monti rating in the middle of January, from its AAA level to replaced Berlusconi on 16 November 2011. AA+, will raise the French government’s cost of servicing Recession had taken its toll on men who had French bonds. As France has very low to zero GDP growth,

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breaking news

rebellion saying the tax would hurt their large financial sector. The City was able to influence the British government to such an extent that the UK threatened a veto. The issue remains a bone of contention between France and the UK. Britain’s political effort to respond to the crisis has taken two key forms. First, it has embarked on a review of the banking system, under Sir John Vickers, and this is likely to produce a more streamlined banking system, with a President Barack Obama meets with President Nicolas Sarkozy at the White House Chinese wall between the commercial or high street its efforst to reduce its deficit will be hampered. This bank and the investment banking operations. Bankers explains the French government’s expressions of dismay have complained about the cost of such an operation, but at the behaviour of the ratings agency. the government has perceived that it can hurt bankers up Most European governments would historically to a point and win political brownie points. have left the smart management of bond yields to The second target which politicians are aiming the Central Bank in the past. Today, governments are at is tax evasion, and the UK government, in the required to manage the expectations of bankers, or readily understandable view that the country needs rating agencies and of markets. The skills required are to maximise its fiscal revenues, is tightening up on twofold. First, the politician must have an insight into loopholes. President Obama has also waged war on tax what markets expect of the country and that requires evaders, and the US investigation of UBS for assisting US some macro-economic knowledge; second they need tax evasion by private high wealth individuals through the skills to present their country’s case in a credible Switzerland shows his canny political competence. manner to the market. The politician who can win over Politicians in both Britain and France have picked markets is likely to be a more technocratic character their targets to win appeal with their electorates, while than the heavily ideological or paternalistic leaders in taking care not to damage their natural supporters the past. This factor is likely to play with the French among the commercial classes. electorate on 22 April and 6 May this year. Forthcoming elections will indicate how well Economic policies as well as character will be tested European politicians have managed their response to by the upcoming elections in America and France. The the recession and economic stress. Those seeking recrisis looms very large in their economic promises. For election will not have the benefit of the balmy but example, we see efforts in France to cool hyperactivity flagrantly irresponsible bull-markets of the twenty in the markets (suspected of being a key cause of the years between 1987 to 2007 to buoy their campaigns. crisis) by supporting a tax on financial transactions, the As electorates are prone to blame incumbents for the so-called Tobin tax. This measure is seen in the business failures of the past (whatever their responsibility for community as more of a sop by the Sarkozy government today’s mess), chances of re-election in a bear market to the electorate than something based on principal. are undoubtedly much reduced. In fact the business community has opposed the tax, The lesson must surely be, as never before, that saying it is detrimental to the interest of Paris and its competence counts more than charisma. Proving that efforts to become a European financial centre. The tax is one is competent is never easy. In today’s environment, likely to be introduced across the European Union, with it is particularly difficult, in some cases, it may be the exception of the UK. The Government mounted a impossible. I NK

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5 m i n u te s w ith ...

Christian Porta Christian Porta is the Chairman and CEO of Chivas Brothers, part of Pernod Ricard. He has responsibility for the company’s Scotch whisky and premium gin brands worldwide. he tells INFO how he manages his brands, how the market for scotch is changing, and what Europe has done for Scotch Whisky

Could you describe the structure and story of Pernod Ricard and Chivas Brothers?

Pernod Ricard is co-leader in the world in terms of spirits and wines. There are two large groups in this sector, one is Diageo and the other is Pernod Ricard. We are very close to the leadership position. Pernod Ricard is historically French, but has, over the years, acquired companies or brands such as Jameson Irish Whisky or Jacobs Creek Wines. It bought Seagram, the Canadian spirits group in 2001, and that brought Chivas Regal to the Group. In 2005, it took over Allied Domecq, which gave us Ballantine’s and Beefeater, and in 2008 it acquired Absolut Vodka from the Swedish government. The company’s total turnover is now 7.6 billion euros, with France representing 10 percent. The two leaders share about 55 percent of the Scotch whisky market. Then the next three medium sized players have about twenty percent together. So the top five players command 75 percent of the market. Chivas Brothers owns, makes and markets all Scotch whiskies and all premium gins of Pernod Ricard around the world. We employ roughly 1,600 people in the UK, 1,400 of which are in Scotland as this is where most of our 17 distilleries are located. Scotch whisky and premium gin represent about 25 percent of the total Pernod Ricard business. How do you brand your whiskies?

Each whisky has its own history, style and marketing. Each has its own advertising campaign and targets different consumers. Chivas Regal, for example, was created more than 100 years ago and is the iconic and most luxurious Scotch whisky. Chivas Regal is more extrovert and Ballantine’s more introvert and it is

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reflected in the personality of the people who consume them. We are not targeting the same consumer groups: with Chivas Regal, we are targeting younger people, what we call “ambitious socials” between 25 and 40. With our The Glenlivet single malt, we are targeting more mature people, more established in their lives, for whom authenticity and provenance are more important. How is the market for Scotch whisky changing?

Outside of Great Britain, Scotch whisky brands are seen as young, vibrant and contemporary. They are consumed by people who want to enjoy themselves, have a premium drink in a premium environment. So if you go to the hottest places in Shanghai or São Paulo or Moscow, people drink Scotch. The image of an oldfashioned product doesn’t exist elsewhere, fortunately for us. It is a high-quality trendy drink consumed by 25 to 40-year-olds, who are becoming wealthier and have more money to spend. It is an aspirational drink and an affordable luxury. They consume it as a drink with a heritage and a luxury image. We are a quality product, coming from a country with a great image and history. Scotch is the largest category of whisky sold worldwide. What are the trends in product consumption?

Over the last twenty years, we have seen a process of “premiumisation”; people are drinking less but they are drinking better. Consequently the consumption of alcohol is overall decreasing. People drink better quality products and that means generally older and better made products, which is very beneficial to us. In Mexico, for example, we see young adults stop drinking Tequila and gradually move towards imported

5 m i n u t es with Christian Porta

spirits like Scotch whisky. They see Tequila as a drink of the past that their parents drink; it is not perceived as a drink that is contemporary. In Brazil, people are moving away from cachaça and towards imported spirits. Greeks are drinking less ouzo and Turks less raki. The same factors apply in India and China. What is the impact of rising commodity prices on your business?

Scotch whisky contains barley or wheat, and the prices of these two grains have gone up dramatically over the last five years. We have to live with this. This is reflected in our pricing. The product needs to be aged at least three years to be called Scotch whisky. A lot of our products are actually aged for a much longer period. Our prices are determined by the cost of raw materials at the time when we bought them. So this introduces an element of complexity to the way we manage our business. How has recession affected you?

So far, it has not really hit us. During the 2008 crisis, we saw some lesser growth in some brands and a slight decline in others. However, as far as 2011 is concerned, we have had an excellent first nine months, significantly better than the year before. For example, what we have lost in Greece, we have gained in Turkey alone. The increase in sales in countries like China, Russia and India has been much more important than the decrease we suffered in countries like Greece or Spain. We are a European industry that benefits from globalisation and the opening up of emerging markets. The trends we see are mirrored by the experience of luxury houses as well. What is the impact of ownership by a French company?

In terms of the product, it has no specific impact. We respect local production traditions and pursue quality. In terms of the way we manage the group, the French culture is important. We are a group with values that include entrepreneurship, trust and conviviality. We believe in letting the people do the job; the Paris-based holding company has less than 200 people. We let people in the different operating businesses promote and develop their business, in a decentralised organisation. How do you read the British business environment in the light of recent events?

It is still fairly efficient to do business here. The way you can run a company in the UK is pretty smooth. It

Christian Porta, Chairman and CEO of Chivas Brothers

has good infrastructure. We can find excellent people here. This is a very cosmopolitan environment which for a global business like us is key. I am pro-European, I believe the UK has benefited quite a lot from the EU. For example, the Scotch whisky industry has benefited hugely from the EU’s efforts in signing free trade agreements with emerging countries. In my opinion, there have been many more gains than losses from European integration. The current instability is not good for business. We don’t have a crisis of the euro – we have a crisis in governance of the Eurozone and a crisis of public finances. Countries in the EU have lived beyond their means for a long time, including the UK and France. The levels of national debt in both countries are very similar and too high. The EU countries need to live within their means, generate more growth and reduce levels of public spending. Could you describe your own background?

I have worked for Pernod Ricard for more than twenty years, starting in the holding company, then in operational roles in France, the UK and Australia. I was running the wine business in Sydney for four years between 1999 and 2003. Since 2004, I have been managing Chivas Brothers from the UK where I am based with my family. I am on the executive committee of Pernod Ricard, a board member of the French Chamber of Commerce and I sit on the Council of The Scotch Whisky Association. I Interview by Nicolas Kochan

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NOTHING IS AS STRONG AS TEAM SPIRIT

This document is issued in the UK by the London Branch of Société Générale. Société Générale is a French credit institution (bank) authorised by the Autorité de Contrôle Prudentiel (the French Prudential Control Authority). Société Générale is subject to limited regulation by the Financial Services Authority in the UK. Details of the extent of our regulation by the Financial Services Authority are available from us on request. © GettyImages - FRED & FARID

FF_INFO MAG_198X230_RUGBY_GB_V2.indd 1

04/08/11 15:11

news in the city by Nicolas Kochan

Mr Draghi’s austere lesson Staying together in the Eurozone will be painful but that pain is necessary, says the new President of the European Central Bank. Breaking up will be a lot harder. So we are all advised to take his austerity medicine

he cat was briefly taken out the bag in late December, only to be returned with a clip about its ears. That was the moment when Mario Draghi, the President of the European Central Bank, stared into the precipice of the break-up of the Euro. Such a possibility would once have been considered the territory of the taboo, as far as ECB senior officials are concerned. The Euro in the past had an almost mystical significance, it was part of the very structure, the justification for the European Union itself. The one without the other was inconceivable. That appears not to be the conviction of Mr Draghi. The burden of Mr Draghi’s interview with the Financial Times is not to explain why the Euro is or is not the answer to Europe’s woes. He is after all an administrator, not a politician and therefore might regard justifications for the single currency as the job of politicians rather than bankers. However, he does warn that the sheer process of Euro break-up would be extremely painful for the smaller countries, whose exit people rather glibly tout as the way out of today’s worrying imbroglio. Mr Draghi told the FT that ‘countries that left and devalued their currency would create a “big inflation”.’ They would have to pay back their loans and other obligations denominated in Euros and this would put the new economy under enormous pressure. The price of exit for the populations would be huge. The departure of smaller countries like Greece, Portugal and even Italy (whose budget deficits require the greatest repair work to meet anything like EU criteria) would not fulfil dreams of greater economic autonomy, insists the ECB President. The dynamics of the global marketplace would require them to put in place intense austerity measures; the only difference, says Mr Draghi, is that they would have to undergo the restructuring, but from the much weaker position of a

Mario Draghi, President of the European Central Bank

badly bruised economy. So no sooner had the President of the European Central Bank publicly considered the consequences of some Eurozone shrinkage, than he deemed it very unwise. Some might argue, altogether too radical. Commentators, (including SocGen, in their recent document, ‘Euro Themes’) have said: ‘Looking ahead to 2012, we see more painful muddling through with recession already starting to bite.’ The solution advocated by commentators to the crisis is not to lop limbs off the European patient, but rather to inject some strengthening economic steroid into its weaker limbs to keep it going to the point when better times arrive. Hence we see Mr Draghi and others advocating a ‘bond purchasing programme’, not dissimilar to the quantitative easing (QE) practised in the UK at the moment. This is the reverse of bond issuance where governments issue paper to take old money out of the economy; under QE, governments print new money and insert it into the economy. After all the turbulence of 2011, the future of the Eurozone it seems, at least according to the powers-thatbe, is likely to be little different to the past, with one caveat. We will be hearing a lot more from Mr Draghi. He is a man who doesn’t mince his words and expects to be listened to carefully. I NK

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news in the cit y

Moody’s sounds triple A warning

British bankers fight back

||| It was only a matter of time! But once Moody’s had sounded a warning note for the future of Triple A ratings inside the Eurozone, it would look to pouring cold water on hopes that the UK could sustain its Triple A. That duly happened in late December when it published its annual report into UK sovereign debt. It said that Britain had risks both from the Eurozone and from domestic factors that could impact on the rating. On the bright side, Moody’s said that the UK economy was competitive, had a currency that was flexible, had loose monetary policy, strong fiscal institutions and a record in reducing debt. I

||| British bankers have been fighting back vigorously against the barrage of anti-EU sentiment that hailed David Cameron’s use of the veto in Brussels. One banker wrote to the Financial Times, ‘The City of London owes its attraction to foreign banks, to British membership of the EU. Without the ability to transact business and vitally move staff anywhere in the EU, in a single market with freedom of movement of capital and people, the City would be finished. Many foreign banks would shut up shop and move to Dublin, Amsterdam or Frankfurt.’ The comment is all the stronger as it is written by a British banker, working for a German bank. I

||| Nothing it seems is sacred. The rising price in metals, in particular copper, lead and bronze, has triggered a massive and horrific outbreak of theft, of everything from wires on train lines, through to metal drain covers on pavements and now to a priceless work of art by the distinguished British sculptor Barbara Hepworth, located in Dulwich Park. The theft occurred on the same day the Metropolitan Police launched its metal theft task force. We wish it well in its difficult endeavours! I

Rising price in metals triggers outbreak of theft

Two Forms by Barbara Hepworth - stolen from Dulwich park

Dismay as S&P downgrades France’s AAA rating ||| Standard & Poor’s downgrading of France’s Treble A rating was greeted with universal dismay. François Fillon, the French Finance Minister, insisted that ‘France is a safe country’ trusted by investors. Rating agencies are useful barometers but they do not decide on France’s policies.’ That said, there must be concern in France that it will have to pay more for its debt, adding to pressure on its deficit reduction

policies. For one bank, there was just a grain of comfort to be taken from the news of the downgrading. S&P stated last December that it would downgrade BNP Paribas if it cut the national rating by two notches. So the fact that the agency downgraded the sovereign debt by only one notch means that BNP keeps its AAminus rating. I

Queen’s Diamond Jubilee puts country into recession? ||| Will next year’s bank holiday for the Queen’s Diamond Jubilee have the accidental effect of putting the country into recession? Analysts at SocGen are confidently expecting the first quarter of 2012 to show negative growth in the UK. But growth in the second quarter is thought to be nil, or possibly just below. However, as the anniversary falls in June, one

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day’s output will be lost from that quarter and that might make the difference between zero growth, and contraction in the British economy. Recession is defined as two consecutive quarters of negative growth, so this holiday could make all the difference. That would be nothing to cheer about. I

news in the cit y

Profile

Taking private banking to a new level A new breed of advisers give objective advice to private clients. Jerome Lazare of ResFamiliaris came out of banking. He is well equipped to step in where the big firms fail

rivate banking to wealthy high-net-worth individuals has remained the niche of small banks or small departments within large banks. Banks have expanded and agglomerated in the last two decades, private banking has retained its individual niche. Indeed, many large banks keep their private offices physically separate from the commercial or investment arms. So private banking offices are more often found in the West End or Mayfair, Jerome Lazare than in the City. Bankers in this field make a virtue of the high quality and personal service; they argue that the larger and more complex the sums of money, the more they require treatment tailored to the particular needs and convictions of the high-networth individual client. That said, many private clients express concerns about the quality of service available when the massive financial and investing institutions carry so much market dominance. This indeed is the conviction of Jerome Lazare, a banker who felt so strongly that private clients were not getting the service they wanted and deserved that he decided to set up a firm helping them round the banking maze. His business ResFamiliaris, a boutique with just a few wealthy family clients, puts strong emphasis on service. It seeks to ensure that clients get the best possible service from other institutions and professional advisers. In a sense, they guard the guards! Conflicts of interests bedevil the selection of investment products by large private banks for

their wealthy clients, as the bank is under great pressure to sell its proprietary products. ‘They are product pushers’, says Mr Lazare. ‘They pretend this is an open architecture. When they sell other peoples’ products, they receive a discount, so their decisions are not completely transparent. They can often be short-termist.’ This small-scale house does not sell products or operate as an asset manager, but it sells advice. ‘We moved out of investment banking’, says Mr Lazare. He had formerly worked at the American bank JPMorgan as Managing Director in their structured derivatives division. ‘We wanted to go back to the traditional philosophy of private banking where you build long-term relationships.’ Mr Lazare’s partners in the business are Philippe Rouault who had also formerly worked for JP Morgan, and Eleonore de Rochechouart who had worked for a Paris-based Family Office. Most firms manage stocks or liquid cash, but these advisers say they need to see all the sources of wealth to understand how it is being managed. So the firm will examine the exposure to fine art and property, for example, as well as financial instruments. ‘We see the client’s entire wealth. The firm pulls together all the strands of the individual’s wealth on a quarterly basis to get a picture of the consolidated risks and exposures. We don’t hold money, we are pure advisers.’ ResFamiliaris underlines its independence by saying it doesn’t take commission on products, to ensure it is not caught up in conflicts of interests. I NK

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news in the cit y

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news Compiled by Hannah Medioni

GDF SUEZ sells a minority stake in hydrocarbon fields located in the British North Sea to Total ||| GDF SUEZ has signed an agreement with Total for the disposal of its 10.4% indirect participation in the Elgin-Franklin gas and condensates fields. This participation is held through a 22.5% shareholding in EFOG, a joint-venture between GDF SUEZ and Total E&P UK Ltd (77.5%, operator), which holds a 46.2% stake in the Elgin-Franklin fields located in the United Kingdom North Sea. The transaction is expected to be completed at the end of 2011 and is part of the Group’s portfolio optimisation program of €10 billion, announced at the 2010 annual results presentation I

Over half of small and medium sized businesses expect no disruption from London 2012 say Deloitte ||| With less than 7 months to go to the start of London 2012, over half of small and medium sized businesses expect no disruption to their operations as a result of the Olympic and Paralympic Games, according to a new report from Deloitte, the official professional services provider to London 2012. Entrepreneurship UK surveyed owners of private businesses, of which 80% generate revenues of £50m or less, and found that 59% of respondents across the country believed the Games will have no impact on their business as usual operations. Even in London the figure was only marginally lower at 55%. Transport is the biggest concern with 14% of small and medium sized enterprises in London citing it as an issue ahead of next summer. Staff unavailability was the next highest worry with 8% of respondents from London concerned. “There will be three million additional journeys on the busiest days of the Games, whilst transport and logistics restrictions will be in place throughout the Games period, which extends for several weeks, underlines Rick Cudworth, head of the Business Continuity & Resilience team at Deloitte. “In our research with larger companies we have

seen the levels of understanding about the potential impact of the Games significantly increase in the past 12 months. 95% of larger companies will assess the impact the Games could have on their operations.” The research also discovered that the vast majority of small and medium sized businesses do not feel that London 2012 will lead to an increase in demand for their products or services. 74% of companies across the country believe the Games will have a neutral impact on sales, whilst this figure was 72% in London. However, just under a quarter (24%) of small and medium sized businesses in London do believe the Games will provide a revenue boost with just 4% fearing a negative effect. Tony Cohen, Head of Entrepreneurial Business at Deloitte, said: “We know from Sydney, Beijing and Vancouver that businesses tend to underestimate the sheer breadth and scale of the impact of the Olympic and Paralympic Games, and this survey suggests it could happen again in London – despite the huge opportunity. Companies large and small should be planning now to take advantage of increased demand and new customers.” I

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news

Inauguration of Air France’s first solar energy facility at Valbonne ||| As part of its environmental policy, Air France decided to participate in the establishment of a photovoltaic energy production plant at its information technology center at Valbonne, in France’s Alps. The project, named “Helios,” is deployed on the site with the highest production potential among Air France sites located on the French mainland. It allows many of the benefits of photovoltaics to be obtained including the use of a free and abundant energy source that is sustainable

and helps reduce greenhouse gas emissions. The facility is composed of solar panels integrated on six parking structures in the center’s main parking lot. The electricity produced is then sold to French utility company, EDF. The plant includes 3,540 photovoltaic modules, with 5,855 m² of cells, eventually 1 GWH / year, representing 10% of the site’s annual electricity consumption, equivalent to the annual electricity consumption of 400 households. I

JCDecaux Airport wins digital screen advertising contract with Eurostar at St Pancras International station ||| Last November JCDecaux Airport has won a fiercely contested competitive tender to manage the contract for digital advertising for Eurostar at St Pancras International Station. This will be the first digital advertising at the Eurostar terminal at St Pancras International, since the high-speed passenger service moved to the iconic London station in 2007. James Cheesewright, Chief Financial Officer for

Eurostar International Ltd commented: “St Pancras International has been our iconic London home for four years and we are delighted to announce JCDecaux Airport as our first digital advertising supplier for the station. We were impressed by JCDecaux’s experience of working with other transport hubs and we’re confident that they’ll provide Eurostar passengers with well-designed advertising that will enhance the customer experience.” I

Fabergé’s historic return to London’s Mayfair and at Harrods ||| Last November, for the first time in almost a century, Fabergé returned with a new home in the heart of London’s prestigious jewellery area, at 14A Grafton Street in Mayfair. Due to the repatriation of Russian resources at the beginning of the First World War, the last Fabergé store in London (of which the illustrious H C Bainbridge was manager) closed in 1915. That store, then located at 173 Bond Street, was a renowned destination visited by royalty, nobility, potentates, tycoons, socialites and connoisseurs from around the world. Fabergé first opened in London in 1906 at 48 Dover Street, moving to Bond Street in 1910. The new store features a special and striking lilac façade for the festive season, evoking the guilloche and enamel techniques for which Fabergé was renowned. The distinctive interior - warm, evocative and modern - is a seamless fusion of old and new. Fabergé is further pleased to announce that its jewellery and watch collections are now available at the world famous Harrods in Knightsbridge. I

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The old Fabergé store at 173 Bond Street

news

Business Solutions- Disneyland Paris awarded a Bronze MIMA in the best website category ||| The Meetings Industry Marketing Awards (MIMA) were launched in 2002 to raise the standards of marketing in the meetings and events industry and to recognise the marketers. Organised by Meetings & Incentive Travel magazine, the 10th presentation banquet dinner took place on 17th October 2011 at the Park Plaza Riverbank London. The event was a resounding success with nearly 370 guests. They were gathered to celebrate the year’s best marketing initiatives. An international panel of judges Laura Faure – industry experts, opinion leaders, agencies and corporates, and key accounts – examined

the applications and decided on the winners. The judging criteria included having clear objectives, the campaign strategy, creativity, the execution of the campaign, budget management and return on investment. Business Solutions - Disneyland® Paris was greatly honoured to receive the bronze MIMA for their new website, launched in November 2010. The website was given a complete overhaul and adapted to the needs and expectations of professionals: user-friendly, intuitive navigation, new interactive features and even more news and information about our destination. I

French Radio London celebrates one year on air ||| French Radio London (FRL), the UK’s only terrestrial French radio station, celebrated its first anniversary in November 2011. The station has moved from strength to strength in its first year of operation, exceeding 55,000 listeners and 12,000 unique page views weekly in its first five months. Not only has the station become very popular for the UK based French community and Francophiles, FRL has also amassed some very exciting partnerships that will ensure the brand continues to grow and flourish.

EDF Energy, Britain’s largest energy generator and major sponsor of the Olympics, has just partnered with the radio to sponsor its daily sports reports, weekly sports shows as well as the upcoming bi-monthly show Rendez-vous Olympique. French Radio London has inked further exciting partnerships, including travel shows sponsored by Air France and Pierre et Vacances, and long term campaign partnerships with Nicolas Wine and TV5 Monde. I

French Bubbles opens pop up champagne bar & Shop ||| A vivacious concept that’s bursting with bubbles, it brings together French Bubbles’ twenty awardwinning champagnes and an amazing selection of French cheese and charcuterie from Une Normande à Londres. Opening on 1st December at 22 Wellington Street, Covent Garden, it is the perfect place to have a great food and Champagne experience, or to have some fun before or after theatre. Clients will also have the opportunity to buy French Bubbles Champagnes and amazing selections of cheese as well as special delicatessen products from home made jam to unique terrines, from fois-gras to Champagne Biscuit! I Opening hours: 11am -11pm / Closed on Mondays

French Bubbles shop window

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news

easyJet launches fastest airline phone app

||| easyJet launched its first smart phone app. The free app, suitable for both iPhones and Android smart phones, will enable passengers to search fares, book flights and much more while they are on the move via their phones. It is the fastest airline booking app available, enabling passengers to book a flight on more than 580 routes in less than 30 seconds! Everyone who downloads the app and is logged in will have a personalised homescreen which recognises them, shows them a countdown clock to their next

booked flight displaying information in one of five European languages. “We are sure the app will be a big hit with our passengers when they want to book flights but we know it will also be invaluable in times of disruption – like the snow of last winter – because passengers will have access to all the information they need as well as having the ability to change their flights in seconds said Peter Duffy, Marketing Director for easyJet. The key features of the app mean passengers can; • search & book flights including both standard and flexi fares • add luggage, sports equipment and speedy boarding to their booking up to two hours before flying • check flight status by arrivals, departures and flight number for scheduled, actual and estimated flight times • manage bookings to change flight bookings or add APIS information • change bookings or process refunds and transfers, particularly useful at times of disruption. I

J.M. Weston celebrates 120 years of French elegance ||| Founded in Limoges in 1891, the J.M. Weston brand opened its first boutique at 98 Boulevard de Courcelles, in Paris, in 1927. The location was a landmark for social graces in the fashionable districts, more of a gentlemen’s club than a store. Men of taste met there to discuss horse racing, hunting parties and the latest fashions from England over a cup of coffee, and to talk over the latest political developments of the new century. J.M. Weston had grown from its beginnings as a shoemaker providing

men with elegant, perfectly comfortable shoes and come to embody a certain lifestyle. In honor of its 120th anniversary, the cherche midi publishing house will release J.M. Weston, a story told by the author Didier van Cauwelaert about the special relationship that Weston had developed with the famous shoes over the years. The book is a homage to a craftsman and his artwork of eternal beauty. It also brings to light the stories of all the people that contributed to the legend of Weston. I

Hermès wins ‘International Luxury Brand’ Award by Walpole ||| Walpole, a not-for-profit organisation that represents the British luxury industry and 170 leading luxury brands, revealed the winners of its annual awards last November. The awards covered ten different categories: British Luxury Brand, International Luxury Brand, British Luxury Overseas, British Luxury Brand Online, British Luxury Design Talent, Best British Craftsmanship, Best British Luxury Service, Emerging British Luxury Brand, British

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Cultural Excellence, Corporate Social Responsibility. Sponsored by McArthurGlen Group, the ‘International Luxury Brand’ Award is given to an international (nonBritish) luxury brand with the greatest impact in terms of sales both in the UK and overseas, innovation, customer service and business & media exposure in 2011. Competition was tough with Ermenegildo Zegna, Lanvin, St Regis Hotels and Tom Ford all nominated for the award that was eventually given to Hermès. I

news

Hats off to... Bernard Vasseur, Head of the Lycée Français joins the ranks of Officers of the famous Order The Head of the Lycée Français Charles de Gaulle in London’s South Kensington, Bernard Vasseur, has been awarded the title of Officier dans l’Ordre des Palmes Académiques for his distinguished contribution to French education. Mr Vasseur already held the title of Chevalier (Knight) which he obtained back in 1998. The ceremony took place at the Lycée Français in December 2011 in the presence of French officials from the French Ministry of Culture and the French Embassy in London. The medallion symbolising Mr Vasseur’s promotion was given to him on behalf of the French Minister of Education. I Stuart McInnes, Managing Partner of Pritchard Englefield Solicitors appointed arbitrator for the Games Pritchard Englefield Solicitors announced in December the appointment of its Managing Partner, Stuart McInnes MBE as an arbitrator for the London 2012 Olympic Games. He will sit in the Court of Arbitration for Sports (CAS) – an Ad Hoc Division created by the International Council for Arbitration for Sports. The body was established by the International Olympic Committee to resolve legal issues within the sports field. Out of the 12 arbitrators, Mr McInnes is the only one from the UK. He has been an Arbitrator to the CAS in Lausanne, Switzerland, since 2005. I

hello, goodbye...

he French Chamber of Commerce would like to welcome the new representatives of existing member companies. We would also like to express our gratitude to members who have made outstanding contributions to the Chamber, but who are now moving on to different destinations. We wish them all the best in their new posts.

Alain-Pierre Raynaud was recently appointed Chairman of Areva UK

Alain-Pierre Raynaud

||| He replaced Jean-Jacques Gautrot, who was Chairman and CEO since 2008. Mr. Raynaud is a graduate of the Institut d’Etudes Politiques in Paris and holds a doctorate in Economics. He began his career as a financial analyst and was head of the Italian subsidiary of the Worms Bank before moving to Renault in 1987, where he became Head of Financial Operations, and subsequently Chief Controller Officer and a member of the group’s Management Committee. In 2003, he moved to Japan as a member of the Jean-Jacques Gautrot Executive Committee of Nissan, where he was in charge of the Cost Control and IT Services Departments and of the group’s financial operations. In September 2006, he became AREVA’s CFO. I

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news Schools

University education in the UK: paying the bill University fees are a topical issue as many universities have already said they will charge the full £9,000 a year. Including living expenses, students should budget up to £60,000 for a threeyear course. Bérangère Hassenforder, Managing Director at Anthony & Co UK, outlines some financing solutions

to invest up to £3,600 into their children’s savings accounts. This contribution provides tax relief on capital gains and investment income. Appealing as this may sound, the downside of this saving scheme is that parents have no control over the way in which their child will decide to use the funds once they access them at the age of 18. Parents who are concerned about this issue should consider keeping savings under their own name until their child goes to university. A parental ISA might also be an option as it provides the same tax relief and flexibility as a Junior ISA and allows each parent to contribute up to £11,280 annually.

Savings accounts: pros and cons The Junior Individual Savings Account (ISA) is now there to replace the Child Trust Fund (CTF) scrapped by the government. It allows parents or relatives

Tax optimisation of existing savings Another financing solution is the proper use of the offshore bonds. It assumes existing savings from parents or grandparents, who remain in control of the investment. Their main tax benefit is the gross roll up that boosts the value of the funds. It also defers tax upon encashment. The bond can be transferred to the child, any tax liability falling then on the student who is likely to be a non-taxpayer. The child can use the funds to cover its expenses during its first year at university. A similar process can be used again the following year. This is an excellent solution when funds are available and subject to a tax liability upon encashment. When properly planned, the estate planning and inheritance consequences can be mitigated. I This is only an overview of the situation; it should not in any way be taken as advice, only an analysis of one’s personal circumstances will ensure a proper financial planning. © wikipedia/Tungsten

||| The high cost of borrowing The British government has advertised the provision of student loans. Students can apply for a loan to cover their tuition fees in full, and maintenance loans are also available. These will only need to be repaid once the student earns more than £21,000 a year. Nevertheless, one should look closely at the repayment conditions and the interest rate, the latter being based on the Retail Price Index (RPI) plus three percent. With current inflation of over four percent, the interest rate would go beyond eight percent. Many parents are concerned that their children will leave university with substantial debt.

A budget of up to £60,000 is required for a three-year course

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news Schools

French Capital: A Study of French Highly-Skilled Migrants in London’s Financial and Business Sectors While much research has been conducted into migration from within the new EU member states, the on-going migration of French people to London has been somewhat overlooked. A study by Dr Jon Mulholland and Dr Louise Ryan from Middlesex University fills this

significant gap

London is considered to be the 4th largest French city

||| Official figures suggest a significant increase in French migration to the UK. While there were officially 38,000 French people living in the UK in 2001, by 2010 this had risen to 111,000 according to the Office for National Statistics. These figures match the Eurostat’s estimate of 114,000 French nationals resident in the UK. They are, however, dramatically short of other recent, though unofficial, estimates. The number of French nationals in London is believed to be as high as 300,000 (Mail Online, Jan 24th 2010), and based on the French Consulate’s estimates – 400,000 (The Economist, Feb. 24th 2011). This has led some commentators to call London the 4th largest French city after Paris, Marseilles and Lyons, and South Kensington – the 21st arrondissement of Paris. But why is London such a popular destination for the French? What do the French highly skilled think of London and the UK as places to live and work, and how do these compare to Paris and France? Is London merely an opportunity for career progression or also a place to settle down and start a family?

This research project – funded by the Economic and Social Research Council – provides a useful insight into the work and life experiences of the French highly skilled in London. The 18-month-long, qualitative study is based on data derived from 31 semi-structured interviews and one focus group, and examines the life and work experiences of the French highly skilled in London’s financial and business sectors, and those of their families. The preliminary findings indicate that the French highly-skilled see London as a place for career escalation, aided by an open and meritocratic labour market that rewards talent and future potential over qualifications and experience. In direct comparison to Paris, London offers excellent promotional and remuneration opportunities in the sphere of work, and a wealth of life-enhancing amenities for families. I For further information about the study or to obtain a copy of the Report on preliminary findings, please contact Jon Mulholland: j.mulholland@mdx.ac.uk.

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news UK Regional Review

Scottish independence: back to Bannockburn? |||| David Cameron has taken a highstakes gamble with the Union by telling the Scottish First Minister, Alex Salmond, that he can have a binding referendum on Scottish independence – but only in the next 18 months, after which any referendum can be no more than advisory. However, the government in Edinburgh insists that the referendum should take place not until the autumn of 2014. Mr Salmond has claimed that Mr Cameron’s determination to force an early referendum could potentially increase support for Scotland’s leaving the United Kingdom.

Following the row, British Prime Minister and the leader of the opposition, Ed Miliband, have jointly urged Scotland to reject calls for independence if a referendum is held. Mr Cameron’s stance arises, as he told MPs, from his ‘passionate’ belief in the Union, whilst the Labour leader’s concerns are of a more practical nature – he said that the break up would be damaging to the UK’s economy. The British government ratcheted up the pressure on Scotland in the middle of January when Chancellor of the Exchequer George Osborne said Scotland would be worse off economically outside the UK than inside. I

Entrepreneurial women take to the stage ||| The Inaugural Women in Business NI Awards 2011, supported by lead sponsor Deloitte – a patron member of the Chamber – took place on 17 November in Belfast. The event aimed at showcasing the innovative, entrepreneurial and leadership skills of Northern Irish businesswomen who make a valuable contribution to that country’s economy. The winner of this year’s Outstanding Businesswoman of the Year award was Orla Corr, Sales and Business Development Director at McAvoy Group, a “smart building” company. Ms Corr has thus become the first Entrepreneur in Residence at the new Leadership

Institute at Queen’s University Belfast’s Management School. Other categories included Best New Start-up, Saleswoman of the Year and Best Exporter. Selection as a finalist or winner of one of the awards carries enormous prestige for business leaders and brings credibility to their companies. Women in Business NI is a business network that provides women entrepreneurs with information and business connections across Northern Ireland. The awards inspire businesswomen and encourage young women at the start of their business careers. Recognition of successful professionals is crucial considering that Northern Ireland has one of the worst gender pay gaps in the UK, according to the latest statistics. I

Wales and the EU – cutting out the middle man? ||| The Welsh First Minister Carwyn Jones plans closer direct links between Wales and the EU, and has even spoken of opening separate bureaux in London to that end. ‘More than 500 firms export over £5bn annually to the EU’, explained his office, ‘and the Welsh Government will support their efforts to safeguard and expand their trade’. Carwyn, a Labour member, said Welsh manufacturing would suffer after David Cameron’s speech at the 9 December European summit. The Prime Minister had vowed to shun a treaty for a closer

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fiscal union in the Eurozone, thus prompting a chorus of disapproval headed by French President Nicolas Sarkozy. From Westminster, however, Welsh Secretary Cheryl Gillan tweeted that ‘by pushing for his own right of audience in Europe’ Jones had adopted ‘an isolationist approach which will weaken the voting strength that Wales has as part of the UK’. Meanwhile, some industry leaders remained positive about Welsh links with Europe. Louis Gallois, chief executive of EADS, the parent company of Airbus, said the partnership between Britain, France and Germany in building aircraft ‘is a good example of what Europe can do at its best’. I

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s u cc e s s s to ry

Pascal has come a long way from the lad, an only child, who learnt cooking at the side of his mother when she came home from work.

The “d’Artagnan” of London’s restaurant world Club Gascon set a style for nouvelle cuisine in the City of London which was the brainchild of its founder Pascal Aussignac who hails from Gascony. Here he speaks about his pioneering approach to catering for busy City folk

ascal Aussignac has an uncanny gift for reading the market and for understanding his customers. More than that, he understands how to satisfy their needs, with restaurants that are very carefully tailored to the individuals that he serves. He is indeed an extraordinarily dynamic force in the London restaurant scene, without ever blowing his trumpet, showing off his ego, or even touting his name around the media. He is modest without boasting about his modesty, effective without claiming he has any lessons to teach. He has spent the last 13 years building up a total of eight establishments which straddle the Westfield shopping mall in White City, through Sloane Street where he has Le Cercle, Chancery Lane where he has Cigalon and Baranis, through to Central-East London with his three restaurants, Club Gascon (which has one Michelin star), Cellar Gascon, and Comptoir Gascon. Finally, and most recently, his Chip + Fish restaurant has just opened in Westfield Stratford. This is an empire which Pascal Aussignac launched in London in 1998 together with his business partner Vincent Labeyrie. The two men had their own reasons for wanting a change of life and country. Mr Aussignac had been in the restaurant business all his adult life – first in his native Toulouse, in Gascony, then in Bordeaux and then in Paris. He had worked in virtually every part of the restaurant and event

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catering industry, showing himself to be a very successful manager, as well as Chef. However, his ambition to set up his own restaurant, where he could make his own mark, had been frustrated by banks and investors in France. He was 29 years old and it was looking unlikely that he would attain the goal he had set himself of establishing his own restaurant by the time he was 30. Vincent, for his part, was at a crossroads in his personal life and was looking for a new challenge. He is a very successful businessman and financier, who has an understanding of wines on a par with any sommelier, although he has never trained to become one. The two men then decided to launch their venture together. While Pascal, who had scarcely visited London before, stayed in his job, Vincent found a derelict property in the relatively obscure, but up-andcoming area of Central London called Smithfield. The area’s primary claim to fame is its meat market, but it is a short distance from the financial district, close to the Mid-City areas of Hatton Garden (home to London’s jewellery industry), Holborn, and Chancery Lane, the capital’s legal hub. People who could afford and would enjoy excellent food were clearly within easy reach, and the eager entrepreneurs sensed an opportunity. Pascal quickly came over to London, and the two

s u cc e s s s to ry

Pascal Aussignac

men set about refurbishing the property and obtaining the necessary licences for a restaurant. Pascal says ‘it took two years between signing the first documents and opening up the restaurants. But when we did open up, in 1998, the success was immediate. The reviews were excellent. There were queues outside.’ The recipe for success rested with the size of the portions rather than the food itself. Showing the understanding of the market that is their hallmark, Pascal and Vincent served small portions to busy professional people. They wanted the country style, but did not have the time or the waistline to tuck into the full-blown portions in which traditional food from the region of Gascony in South-West France is served. ‘We produce a form of French tapas – it suits the businessman who likes a group of small dishes rather than a few large ones. He doesn’t have the time or desire to have a siesta.’ The Gascon cuisine is very important to the expatriate Chef in winning customers. He also has very firm ideas about the role of the Chef and proprietor in working with his staff. ‘We work as a team. I need to be working with the sous-chefs, with the waiters, with all the staff.’ He insists that the proprietor’s place is in the kitchen rather than the television studio. The success of Club Gascon at 57 West Smithfield

gave Pascal the impetus and financial resources to acquire the next-door building and start Cellar Gascon at 59 West Smithfield, at that time a bank. Vincent and Pascal converted this into a wine bar. The two establishments were kept very separate. The success of the two eateries was such that they needed additional storage space, so they acquired a further property on Smithfield which they converted into part storage, part “laboratoire”, part deli. In due course and due to customer demand, some seating was installed to make it a bistro as well called Comptoir Gascon. The focus on Gascon food was shifted in 2004, when Pascal and Vincent set up a restaurant on Sloane Street called Le Cercle, which he describes as ‘more feminine, more glamorous, more sexy’. The menu changed to represent a wider spectrum of French dishes, with fish and vegetables taking a larger place than the meat dishes of Smithfield. In recent years, the two men have moved away from French food altogether. The conversion took place when they took a shop in the newly created Westfield Centre in West London. An early effort to offer French food was abandoned, and Pascal and Vincent made a counter-intuitive choice of offering a well-presented, but unquestionably English cuisine of fish and chips. The naming of the restaurant Chip + Fish provides the ‘twist’ that Pascal says is the mark of their image. The brand has succeeded in West London and Pascal has now taken it East, to Stratford, where it is part of the newly opened mall to serve visitors to the Olympic Games. He is hopeful of its triumphant success. ‘If it doesn’t succeed during the Olympics, it never will’, he says drily. Pascal makes no secret of the fact that the recession is taking its toll on the restaurants near the City of London. ‘Business people are spending longer at their desks to hold onto their jobs. Their expense accounts are not going so far. This is a very tough time, and next year is not looking any better.’ Pascal has come a long way from the lad, an only child, who learnt cooking at the side of his mother when she came home from work. She had recently divorced and needed his support. He says he quickly knew he was skilled with his hands and he enjoyed making the food of the Gascon region. ‘I was an adult when I was a teenager, and I knew early that I was going to be a Chef.’ Pascal has made it with impressive ease. His greatest challenge now is keeping up the momentum into middle age, started when he was a young man. We watch his progress with great interest. I NK

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focus ICT: the surest way to attaining the Holy Grail of efficiency E

fficiency is the goal of governments and businesses under pressure to find routes through today’s economic crisis. There are doubtless many ways to achieve efficiency, but none is more certain to guarantee a successful goal than the application of ICT. More than that, governments and companies have no choice but to invest heavily in ICT. For it is not only going to help reduce costs, it is also going to advance customer satisfaction. That in the end makes it a tool for competitiveness, the Holy Grail of business. But the application of ICT has its own costs and risks. For example, it is an area of rapid and dramatic change, whether it is cloud computing, the internet, more powerful mobile telephony, or social media. Keeping up with change is costly and intellectually demanding. It is also stressful for employees, who have to be adaptable. Some basic statistics illustrate the power of the change in the sector. For example, over the last five years, the percentage of the world’s population using the internet has almost doubled, from 18 percent to 35 percent. So 1.17 billion people used the Internet in 2006, while 2.4 billion had access to it in 2011, according to the ITU World Telecommunications/ICT indicators database. The drama of the internet opportunity is compounded by the profile of users; they are much more likely to be young, and they are increasingly likely to come from emerging markets. So 45 percent of the world’s internet users are below the age of 25.

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Even more remarkably, perhaps, some 62 percent of them come from developing countries; Chinese users represent 25 percent of that number. The expansion in mobile phone usage is even more extraordinary with growth over the last five years doubling from 3 billion subscriptions to 6 billion. The Focus that follows highlights the numerous ways in which these users can become consumers of technology and of products. National differences are critical to understanding the benefits of technology. So we see from the ground-breaking report by the Cercle d‘outre-Manche (which we discuss on page 34), as well as from our interview with Pierre-Yves Cros, Global CEO of capgemini consulting on page 42, that France leads the UK in the development of infrastructure while the UK has a larger part of the population that is switched on to the benefits of technology, even if they have to make do with slower internet speeds than their neighbours across the Channel. The company or government that is alert to the latest technology has a competitive edge. This takes many forms. Those that have adopted cloud computing will benefit from efficiencies and cost savings; those that have adopted their sales and marketing profiles to the growth in social networks will raise their scope for attracting and satisfying potential and actual purchasers. Change carries risk as well as rewards, and issues of privacy, data protection and accreditation need to be considered when adopting or moving the barriers of technology. The future holds hazards as well as hope. I

focus

ICT Timeline 1944

1951

1969

Colossus, the first programmable electronic computer is built in Britain’s Bletchley Park to break secret German wartime codes

The LEO I, manufactured in the UK, is the first computer to be used for commercial business applications

US invention of the Unix operating language, whose offshoots Linux and FreeBSD underpin today’s web servers

1976

1975

1971

Steve Jobs, Steve Wozniak and Ronald Wayne establish Apple Inc.

Bill Gates and Paul Allen found Microsoft to provide BASIC interpreters for the Altair 8800, the world’s first portable computer

Ray Tomlinson pioneers email and introduces the “@” symbol

1977

1980

1981

Invention of the PC modem

Tim Berners-Lee at CERN writes the ENQUIRE hypertext program and introduces hyperlinks; Microsoft develop the DOS system for IBM

IBM introduces the first PC

2000

1995

1991

UN Secretary General Kofi Annan launches the UN ICT Task Force, tasked with bridging the “global digital divide”

eBay, Hotmail and Amazon are all founded

The World Wide Web launches to the public

2004

2006

2010

Mark Zuckerberg launches Facebook

• Twitter created by Jack Dorsey

Apple introduces the iPad

• Skype announces more than 100 million registered users

Focus Contents Part one: Today’s infr astructure 32 A UK government driving for ICT leadership

48 We need better infrastructure to keep up with our workload 49 e-Commerce: it’s time to talk shop

34 Digitalisation has the power to effect change 36 Digital economy: reducing costs and refuelling growth 38 Lessons to learn from across the Channel… 40 Tech City: 21st century collaborative entrepreneurship

Part three: Looking ahead 50 The logic of technology-driven business innovation 52 One click can take you there: networking today 53 Staying in tune with music fans

Part two: Pr actical applications for ICT 41 Three-fold applications for ICT

54 Welcome to the Cloud

42 ICT: force for efficiency Pierre-Yves Cros puts theory into practice

56 Hazards in adopting latest technology

44 BT’s record-breaking communications at the Games

57 Social media in the workplace: to tweet or not to tweet

46 Bringing intelligence to the railway

58 Beware the new technologies!

55 Selecting the right package for adopting Cloud-based ICT

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focus Part one: Today’s infr astructure

A UK government driving for ICT leadership The UK is determined to build up its lagging ICT infrastructure to reach global standards. It is already in the top bracket for e-commerce

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CT is a major contributor to the UK economy. IT and telecoms contribute over £30bn and £22bn respectively in terms of Gross Value Added (GVA). Together they contribute 9 percent to total UK GVA. There are 144,000 companies in the IT and Telecoms industries in the UK. This explains why the UK government places great emphasis on the modernisation of the UK’s ICT infrastructure. The need for such an advance was recently demonstrated by Boston Consulting Group. Its eIntensity index shows that the UK has the culture to embrace ICT, but it lacks the infrastructure. The index, which measures the depth and reach of the internet in commerce and society, found that the UK ranked 5th out of 28 OECD nations. The leading country on the index was Denmark and the one at the very bottom was Greece. However, in terms of broadband penetration, the country is lagging. The same index showed that the UK ranked 14th out of 28 OECD countries with slow broadband speeds. As the UK has the highest per capita spending online it was ranked first in the expenditure sub-index. The index goes on to show that while three quarters of UK households already have broadband access, Britain is not one of the 14 countries already prepared for the “applications of tomorrow”. Many developing economies are leap-frogging established countries. For example, Latvia, Bulgaria and Portugal are already achieving the necessary 11 Mbps download and 5 Mbps upload speeds. The worldwide average is currently 5.9 Mbps for download and 1.7 Mbps for upload; the UK compares favourably with a 6.4

Chancellor of the Exchequer, George Osborne

Mbps download speed. The office of communications (Ofcom) have since reported (May 2011) that average download speed in the UK is 6.8 Mbps. The UK’s culture of technological competitiveness is well demonstrated by the eagerness with which it has set up ICT hubs of activity. Their number has grown remarkably over the last decade. Today, London is home to over 23,000 ICT and software companies – the highest number of any European city. A quarter of all British jobs in computer and related activities and 22 percent in telecommunications are based in London. London also has the highest level of private equity and venture capitalists investments into technology companies of all UK regions. In 2010 they invested £453m into 60 companies in the city. London’s expansion in the ICT area has been

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accomplished under the auspices of Kulveer Ranger, for example, the Broadband Quality Survey 2010 shows director of Environmental and Digital London, that UK broadband services enable users to ‘comfortably working in partnership with the Tech City Investment enjoy’ the latest web applications but still lag someway Organisation. He chairs the Digital London Advisory behind the best in the world, such as those in South Board and advises the Mayor on digital projects, Korea, Hong Kong and Japan. The survey scores London such as the London Datastore, WIFI London and the at 30, the same as Glasgow and one point higher than London Card. The Tech City Investment Organisation Birmingham. This compares to the winning city of was established in March 2011 with the aim of making Seoul that has an overall score of 73. Both Virgin and BT East London one of the world’s top destinations for are in the process of updating their networks to offer tech entrepreneurs. their customers superfast broadband. While London bounds ahead of other European The culture for ICT is very evident in the country’s cities, the rest of the country must not be forgotten. eager embrace of e-commerce and e-government. Here, IT firms have clustered around Swindon to the West the UK is in the top echelon of global leaders. The of London, Cambridge to the East, and Edinburgh to government’s e-government initiative is focused on the North; each is a mini Silicon Valley in its own right. Directgov, a portal with 10 million registered users; it Indeed, the UK has world-leading silicon chip makers, covers around 75 percent of key government services. most notably ARM Holdings, a joint venture between In 2009, about 60 percent of residents used at least one Acorn Computers, VLSI Technology and online government service but only about Apple. 40 percent of UK businesses routinely Masterminding the entire UK strategy The Chancellor interact with the government online. is the UK government’s Department announced in his There is a further remarkable statistic. for Business, Innovation and Skills’ Autumn Statement The percentage of businesses that used Technology Strategy Board (TSB). This is that the government the internet to interact with public a national innovation agency aiming at would create a authorities in 2010 was 86.5 percent, a accelerating growth by stimulating and new £100m urban large increase from 66.4 percent in 2009. supporting business-led innovation. It The main reason for using the internet broadband fund has established and overseen the creation to interact with public authorities was to of a £200m network of Technology and return completed forms, such as for VAT Innovation Centres. The TSB is also a returns, at 85 percent of all businesses. vehicle for channeling funds into the ICT sector and The country is a leader in the acceptance and use of in July 2010, it launched the first round of the £18m e-commerce by retailers and consumers. E-commerce “Collaboration across digital industries” competition. sales by non-financial businesses in the UK amounted to This challenged businesses to contribute to an £385.4bn in 2010, a decrease from £394.1bn in 2009. This internet with a sustainable economic future, from figure represented 16.9 percent of the value of all sales which all participants would benefit. In December 2011, by UK non-financial businesses up from 16.1 percent in the TSB launched the second round, with an investment 2009. Wholesale had the highest value of e-commerce of up to £5.8m. In August 2011, over 160 people attended sales at £155.8bn followed by manufacturing at £114.5bn. the Tech City Launchpad where 40 companies pitched The final piece in the UK ICT jigsaw is e-education. to over 100 potential investors. 18 of 40 companies have This may also be the most controversial. For while UK received a £100,000 grant which is conditional on them universities are undoubtedly world leaders in various receiving match funding from private funders. aspects of computing and programming, British Proof of the government commitment to fund schools (for the most part) are lagging in the quality of ICT was the announcement by the Chancellor in his their curriculum. Indeed, this was the subject of some Autumn Statement that the government would create controversy in the middle of January, when the Secretary a new £100m urban broadband fund to create up to of State for Education, criticised the ICT curriculum 10 “super-connected cities” across the UK with 80 – 100 and vowed to modernise it as part of the government’s Mbps superfast broadband. London, Belfast, Cardiff plans for advancing the UK’s ICT infrastructure. There and Edinburgh, and up to six further cities, will receive can scarcely be a more important place to start such support from the fund over the next three years. a programme, but the fact that it is now high on the Broadband quality remains a bugbear of those that government’s agenda suggests that here too, the UK is would move the UK’s ICT infrastructure up a gear. So, on the march. I Nicolas Kochan

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Digitalisation has the power to effect change The French digital structure is stronger, but fewer French companies and individuals have switched on to digitalisation. This was the conclusion of a report undertaken by the Cercle d’outre-Manche, says its co-founder, Arnaud Vaissié

Nicolas Kochan: The last report of the Cercle d’outreManche was focused on the subject of information and computing technologies. Could you explain what you were saying in the report and what it was implying?

disabilities, the students who go more slowly, and it brings more fun and flexibility than just classic education with one teacher.

Arnaud Vaissié: In comparing France and the UK, we found that French infrastructure on the digital side is quite good and somewhat better than the British one. But when it’s linked to the digital culture and the change required from the population, then the French have taken to the digital world in a much smaller and slower way than the British, whether it is with government, with education or with business. In all three sectors, the culture of the French society is less digitalised than the British.

NK: In terms of companies and business, would you say that information technologies enhance productivity? What’s their impact on employment?

NK: And your message?

AV: It definitely has an impact on productivity. First of all, you have e-commerce, which is massive; ecommerce revenue and sales in the UK are twice as much as in France: 43 billion euros vs. 22 billion euros in 2010. It is growing extremely rapidly in both countries, but the UK is very much the flagship in terms of e-commerce in Europe. E-commerce brings productivity gains. If you look at businesses, there is no doubt that small businesses with websites and email do function better. There is a large number of SMEs or professionals in France without Digitalisation is websites and email. In healthcare, for the only way for example, you cannot communicate with government to your doctors by email in France, whereas reduce the cost in the UK it is becoming more and more of public services accepted.

AV: We say that it is critical to use our infrastructure in a better way and to change the mindset of the French vis-àvis digitalisation. Because digitalisation is the only way for government to reduce the cost of public services while increasing the quality of those services, which is otherwise the impossible while increasing equation. The UK has invested ten times more the quality of NK: To sum up, what is the importance of than the French in public services those services the digital economy? digitalisation and outsourcing. As far as AV: The digital economy is a real hope. education is concerned, it is also clear With digital economy in many fields that education must take full advantages we’re going to do things better with of digital possibilities. And this is by the way what less money. Outsourcing, for example, is a key part we are doing with this new school in Kentish Town of the process of digitalisation of public services. Digitalisation will assist the private sector to (Collège Français Bilingue de Londres), which is very IT-driven. Because we know that students undertake a massive number of tasks performed by get better results and it is also helping those with the state today. I

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E-commerce and e-business in France and the UK FRANCE

Companies without a website

1 in 2

1 in 4

Percentage of companies buying online

18 %

50 %

Percentage of companies selling online

13 %

32 %

Percentage of turnover coming from online sales

12 %

21 %

Number of online traders

32 300

62 000

Number of e-consumers

29m

34m

% of overall population buying online

48 %

57 %

€22bn

€43bn

Percentage of employees using ICT

51 %

54 %

Number of card payments

85 %

58 %

Percentage of 3-D Secure payments

11 %

95 %

E-commerce turnover (excluding financial services)

Sources: Insee, CAE, Eurostat, DGPTE, Région Ile-de-France, HM Treasury, EITO (European Information Technology Observatory)

About the Cercle d’outre-Manche Préface de Gilles Babinet, président du Conseil national du numérique

Faire de la France une puissance numérique pour accélérer la croissance et l’emploi

The Cercle d’outre-Manche brings together French leaders of international groups operating in the UK and France. Co-founded by Arnaud Vaissié and Pascal Boris in 2004, the French London-based think-tank aims to highlight the best practices in both countries and suggest new policy initiatives based upon this research. They have recently published their latest study: “Making France a digital leader to accelerate growth and employment”. The report can be downloaded, free of charge, at www.cercledoutremanche.com I

Faire de la France une puissance numérique pour accélérer la croissance et l’emploi

Pascal BORIS, Arnaud VAISSIÉ, Bruno DESCHAMPS, Pascal CAGNI, Pierre-Yves CROS, Gérard TARDY

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Digital economy: reducing costs and refuelling growth Approaches to digitalisation vary on both sides of the English Channel. Philippe Chalon, Managing Director of the Cercle d’outre-Manche, explains why embracing e-living pays off

igital economy is the most dynamic sector of the a saving of one percent of their GDP. If the French global economy. Its growth rate is about twice as followed suit, they could expect €16bn in savings. high as the most developed countries’ GDP growth rate. Going digital and outsourcing several administrative Today, it generates roughly a quarter of French growth, procedures to the private sector would mean a real cut in government spending and an increase in service and it is expected to create some 450,000 new jobs in France versus 365,00 in the UK by 2015. Investments quality ranging from 20 to 30 percent productivity in digital economy are considered to be the most gains. productive since they increase the competitiveness of all sectors. Boosting SMEs’ competitiveness through eOver the last few decades, the growing pace of commerce technological progress has led a number of countries Digital economy can also be seen as a lever to to go digital. Any efficient strategy must be based drastically increase wealth creation, via e-commerce primarily on quality infrastructure. In this area, the and dedicated platforms. Today, some 500,000 French French have nothing to be ashamed of: as small businesses are still completely a matter of fact, France tops international disconnected from the internet due to rankings in terms of high-speed networks France tops a lack of resources, time or skills. Only or fiber-optic connections. However, international 12 percent of French SMEs’ turnover compared to other European countries, rankings in terms of is achieved online, compared with 21 and especially the UK, France is much high-speed networks percent of British SMEs. This accounts slower at fostering digital literacy and or fiber-optic for much of the discrepancy between digital culture. Indeed, there is still a lack connections. French and British foreign trade. If our of everyday usage in e-administration, eSMEs exported as much as their British commerce and e-education. counterparts, it would result in a € 19bn increase, which would reduce France’s E-government: improved quality and cost reduction trade deficit of 28 percent. With public deficit reduction being a painful necessity For now, France has arguably fallen behind its for France as well as for many Western countries, European neighbours: 16 percent of the European egoing digital is definitely an imperative. The good commerce turnover is achieved in France, 22 percent thing is it has a double advantage: digitalisation in Germany and 33 percent in the UK. The structural allows government cost savings whilst improving the roots of French SMEs’ difficulties to grow are to be quality of public services. Indeed, computerising has found in the poor use small businesses make of digital proven to be a remarkable tool to reform the British equipment. public sector. The Scottish government, through an online platform supplying public services named E-education means higher success rates e-procurement Scotland, has managed to achieve Various studies indicate that digital technologies in

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education do enhance communication thanks to a better access to new markets. between schools and parents. The more 16 percent of Developing IT in education means parents are involved in their children’s the European eparents getting more involved in their school lives, the higher the success rates. children’s school lives. Moreover, the work commerce turnover Monitoring delays, viewing transcripts environment itself may very well change is achieved in online, reading teachers’ comments, by implementing new patterns of homeFrance, 22 percent being instantly notified of schedule based working and training, which are still in Germany and 33 changes – new technologies make largely undervalued. Finally, going digital percent in the UK. parenting much easier and therefore is in line with public administration and create a demand for the introduction policy reform emphasising efficiency and of computerisation in schools. responsiveness. In France, investing in digital economy does not France has many advantages including its quality mean spending more or purchasing new equipment, infrastructure, its top of the art schools and a leading but establishing a genuine digital culture. The idea is engineering and consulting industry in the digital to place the citizen, user or customer at the centre sector: among the top 5 leaders in the digital industry, of public policy, to provide them with centralised, two of them are French companies (Capgemini and simplified services, and to help companies be active on Atos). This expertise should be the basis for a successful the internet so that their offers are more competitive digital strategy. I

Digital economy’s contribution to economic growth (today and 20 years ago) 0,6

0,45

0,3

0,15

0 1980s

2000s France

Sources: Coleccia & schereyer

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Lessons to learn from across the Channel… From the Presidential Office downwards, the French have embraced the notion of using the internet to enhance “competitive intelligence”. Mike Alderton, Director at AMI Software (UK), suggests they have something to teach us – and the world…

Leading by presidential decree? In part, this may be attributable to President Jacques Chirac’s appointment in 2003 of Alain Juillet, a former Military officer, to the post of Director of Competitive La Defense Intelligence. Perhaps also the time was right with France having both a diverse range of industries needing to expand following previously weak export performance, and an early investment in several areas of internet search technology development. Since 1999 several internet search companies have emerged and evolved from within France. Some of them aim at general web search or a particular vertical market. Others, with more intelligent capabilities and the ability to capitalise fully on the value of social media, have risen to meet emerging strategic intelligence function challenges.

Funding internet prowess Among French organisations, large and small, there is recognition that competitive intelligence includes making sense of the internet – job titles such as Directeur de veille and Veilleur have become widespread with executives assigning meaningful budgets to fund people, technology and training. The UK has some of the most experienced competitive intelligence professionals in the world,

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rganisations worldwide have begun to appreciate the importance of competitive intelligence1 in different ways. But the French have been particularly proactive in understanding the value of the internet as a source of competitive information, and the development of technologies to capitalise on that value.

but they are still few in number and CEOs do not capitalise fully upon the value of their work. The UK is also not without its own global success stories in search engine technology. However, these are primarily aimed at document management and Intranets, or computer networks that use Internet Protocol solely and securely within organisations, rather than between organisations. The need nowadays is to look outside the business as well.

French lessons for the world? So the question is whether the French are doing something in isolation, or whether they are at the vanguard of something with more universal appeal. The answer, it seems, is the latter. In 2011 more UK organisations have adopted specialist internet search technologies as part of their competitive intelligence strategy than ever before and this is set to grow further in 2012. And beyond Anglo-French borders, organisations in Asia and North America are recognising the need for change too. In all cases the majority of solutions purchased are French in origin. The need for good competitive intelligence is essential for growth, all the more so given the continuing financial uncertainty that prevails today. Companies face increasingly regulated markets and a host of emerging challenges. Understandably, employees worry about missing a sales opportunity that could profoundly affect revenue and reputation, and firms need to allay such fears. In all these fields competitive intelligence plays its part – and it is an area in which the French can help. I 1 Competitive intelligence – the process of gathering and analysing intelligence about products, customers and competitors, which helps executives make strategic decisions.

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Sharing ideas: from Silicon Valley to Tech City Cities must capture their share of the global flows of people and resources either by attracting intellectual capital or linking to it via ICT. Steve Little, Senior Lecturer in Knowledge Management at the Open University Business School, explains Sohonet was established by a group of Londonbased post production facilities in 1995. Its aim was to provide high-speed connectivity between firms and clients. It is now a private provider of specialist high-capacity links between London, Los Angeles and Sydney. This success required both the technical insight of its developers and a community of users who appreciated its potential to transform their business reach through the digital distribution of tasks among widely separated companies. Silicon Valley developed as a global technology centre along a very specific pathway from well funded cold war research and well endowed universities via a venture capital market which understood the nature of the start-up companies and their needs, with the

city of San Francisco close by. Currently the UK government is supporting an existing cluster of digital and creative companies in East London by promoting the Tech City brand, while in Salford and Manchester Media City UK is building on an existing cluster of media and creative companies using a model drawing from experience in Seoul and Dubai. The established presence of a local â&#x20AC;&#x153;creative classâ&#x20AC;? is expected to attract more educated and qualified workers to these locations. Both of these initiatives promise success because they build on existing vibrant communities of practice with the support of responsive local government and educational institutions. The Silicon Valley model may not be the last word in clusters of innovation! I

â&#x20AC;&#x153; In short, the MEB made me think internationally â&#x20AC;? A. Thomas, MEB 2009 Junior Consultant M&C Saatchi Corporate

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Tech City: 21st century collaborative entrepreneurship The UK’s ICT sector is one of the most vibrant in the world, employing more than a million people and contributing more than £66.4bn to the UK economy. It’s time to uncover its potential

he catchy phrase – Tech City – refers to the organic and fast-growing cluster of more than 600 digital and creative companies that first appeared around the so-called Silicon Roundabout in Old Street. The exact geographical boundaries of the Tech City are not clear since, as the CEO of Tech City Investment Organisation (TCIO) Eric van der Kleij rightly points out, it seems both impossible and unfair to delimit this dynamically growing area that stretches across the financial heart of the City of London to Stratford and the Olympic Park in East London. It is already Europe’s largest technology hub – an incredible change from 2008 when the area housed just 15 tech firms. TCIO, part of UK Trade & Investment (UKTI), was set up in 2010 to help early-stage entrepreneurs and innovative companies grow and succeed sustainably, as well as attract global business, and high-value investment to the area. Since its creation, the Government has implemented

wider regulatory policies to create a business-friendly environment for entrepreneurs and investors. The area’s dynamism can be attributed to the fact that it gives start-up companies access to an established workforce and mentoring opportunities. There is a real sense of community spirit in the area, where likeminded individuals and businesses network, exchange ideas and forge collaborative relationships. Their contribution to the nation’s high-tech resource could not be more timely. With London hosting the Olympics in 2012, this truly is a unique time in history for the UK to capitalise on the investment that is going in around the city in terms of transport and infrastructure. The high-tech Olympic Park broadcast and press centres will continue to thrive after the Games, offering some of the most globally connected space in this world-beating business environment for technology companies and research centres. I Agnieszka Karch in collaboration with Eric van der Kleij

Tech City stretches from London’s East End between Old Street and the Queen Elizabeth Olympic Park in Stratford (above)

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focus Part two: Pr actical applications for ICT

Three-fold applications for ICT O

Three sectors of developed industrial economies have benefited from the application of ICT. These are first of all government, second commerce, and third education. Government has gained access to ICT over the last decade by contracting out its requirements to companies with expertise in large scale systematisation. So worldleading French companies like Capgemini and Atos and UK companies Capita and Logica have been major beneficiaries of UK government contracts. These firms have participated in projects like the computerisation of the National Health Service and the Driver and Vehicle Licensing Agency. This work has been transformational, spurring major employment opportunities in the host countries as well as administrative efficiency.

The European retail sector has been a major purchaser of ICT as it has built online computing systems to facilitate Internet retailing. The sector has grown new companies like Net-a-porter and Vente privee on the back of ICT. At the same time, companies with ‘bricks and mortar’ premises have added internet facilities to take out costs. Consumers in the UK have been particular responsive to Internet shopping. Governments on both sides of the Channel have invested heavily in the introduction of computing hardware into schools and universities. It is now accepted that students need individual laptops after a certain age for Internet research and e-learning. So the new CFBL in Kentish Town emphasises the critical role of IT in an educational context. I

ICT: making globalisation happen Two and a half centuries after the first steam engine was built, the world lives in an era of globalisation facilitated by technological advance. Guy Bondonneau, the Managing Director at Web Consulting Team, provides a historical overview The steam engine invented around 1680 by Denis Papin changed the world. The Age of Steam followed with its new model of technology – the mechanical universe which lasted for 250 years. In 1946 the ENIAC, the first computer, came on stream. A milestone marking the start of yet another new era – one of information and communications technologies, an age in which information will be the basic principle of organising work. ICT covers the creation, storage, access, manipulation, and transmission of information. Nothing changes society as much as the way work is organised. After the Great Depression the trend was towards “big is beautiful” and towards centralisation. It all changed in the 1970s. Companies started wanting to concentrate on their core activities, thus divesting themselves of non-core ones.

How was it made possible? ICT experts had been developing electronic information and communications technologies and tools, such as the electronic transfer of funds, commercial documents and many more. As a result, companies were increasingly able to outsource their non-core departments and activities to other companies that made it their business to offer specialised services from accounting, to marketing, to parts manufacturing, to logistics, to name but a few. Thanks to ICT, companies are now able to call upon a network of suppliers on a global scale. Globalisation heavily relies on information and communications technologies for making it at all possible. I

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ICT: force for efficiency Pierre-Yves Cros puts theory into practice Pierre-Yves Cros is the Global CEO of Capgemini Consulting and one of the country’s leading exponents of the ICT culture. Here he tells INFO magazine how ICT can bring benefits to an economy and how it can take forward our children’s education. He also believes the UK can teach France much, in terms of e-commerce

INFO: To what extent can ICT assist governments in this very difficult economic environment?

P-Y Cros: ICT is very relevant in the current economic climate. There is a limit to what can be done about the largest crises, such as that of the Euro, but the state can improve its productivity. Here there is much more to be done. Technology has been the driver of productivity over the last 20 years. It has also been a source of job creation and it has benefited the customer, the citizens. Governments can use technology to reduce costs as well as satisfy citizens. The French government, as other governments across Europe and Asia, have shown enormous interest in this developing area. INFO: Can you specify the areas of government that ICT can benefit?

P-Y Cros: Technology assists every level of government involvement in the affairs of its citizens. It allows for ministries to prevent fraud in the benefits systems, for example. Systems enable the government to check the data and discover when a citizen is not entitled to benefits. There are currently large amounts given to people not entitled to benefits. It also assists in the prevention of tax fraud. The digitalisation of the tax system in Greece would benefit from the adoption of the British tax system, where tax is taken from the employee at source. INFO: Could you explain the benefits of outsourcing to a private provider of ICT?

P-Y Cros: Outsourcing enables governments to

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implement digitalisation on your behalf. It costs 30 percent less to outsource the job than do it internally. So the cost of tax collection will be reduced by a very significant amount, while you will collect much more tax. Computerisation is a much more efficient way of collecting tax than paper-based systems. The UK has discovered the benefits in terms of customer service, of computerising the vehicle licensing system, through the DVLA. INFO: Could you describe how the introduction of digitalisation helps in other areas of state activity?

P-Y Cros: In terms of healthcare, digitalisation enables a service to close small and often inefficient local hospitals, by providing tele-medicine. A person with diabetes, for example, can have tele-monitoring and automatic insulin injections. Heart problems can be automatically monitored using ICT. Computerisation not only helps to save life but also cut costs, as healthcare costs rise for today’s ageing society. Indeed, massive improvement can be obtained across the board of the state’s activities as a result of computerisation. INFO: What area of society’s activities needs ICT the most?

P-Y Cros: The biggest gap is in education. In Capgemini, two thirds of our people are educated remotely. Elearning is regarded in many private companies as the number one way to acquire education. Physical learning, where you meet other students, is the exception. But in terms of school and advanced state education, this is not the case – here , students need

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The UK, on the other hand, is a trading and merchant economy and it is far more advanced in terms of e-commerce. A similar culture exists for the provision of the French rail system; no private firm could afford such an investment. The British base their investment in infrastructure on what people are prepared to pay over the next five years, not the next 25 years. What can France learn from the UK?

Pierre-Yves Cros

to be together 95 percent of the time. This doesnâ&#x20AC;&#x2122;t have to be the case. We should change the way we educate our children as this is necessary if we want to maintain our competitiveness with Asia and other fast-growing economies. We need to leapfrog the way we educate our children and this can be accomplished by equipping all our children with iPads or a similar device. Self-learning needs to be greatly advanced. This will be very positive for students, as training modules on an iPad are much more fun than classroom learning. INFO: Could you compare the French and British attitudes and preparedness in terms of ICT?

P-Y Cros: France is an engineer-led country and this has meant that it has built up a large pipeline of datacarrying systems, using technology like fibre optics. Indeed, France has a very large communications network. But this extensive network is used primarily by private individuals for their individual needs. In short, the French have a state vision for ICT which says that all citizens must be able to communicate using ICT, even those in remote areas. This system is not used sufficiently by companies doing e-retailing or e-commerce.

P-Y Cros: The UK has discovered that you can achieve cost cutting by using private players to make the investment for the government, while at the same time giving the citizen a better service. The UK is way more advanced than France in using technology to achieve productivity. The UK has done the bulk of the first stage of ICT implementation and is now embarking on fine-tuning the cost to make it even more efficient. They are now planning projects for e-procurement, across the board of the entire government. It is currently fragmented but the government wants to adopt procurement to achieve greater efficiencies. This will put pressure on suppliers to deliver benefits. France needs the technology before it can achieve further productivity. The good news is that it can leapfrog to the next generation. So the benefits will be bigger. It can go to the 2015 solutions and save more money. INFO: What other areas can ICT benefit, e-commerce for example?

P-Y Cros: The state needs to support small and mid-size companies in their endeavour to sell on the net and to become more efficient. There are many mid-size firms in France that would benefit from a decent website and a supply. There are many buyers in Asia who they can reach with their luxury goods or whatever. There is now more sold online by the UK than through physical shops. The UKâ&#x20AC;&#x2122;s lower unemployment rate is not only the result of more flexible working laws and so on - it is also about the many small UK enterprises playing the e-commerce game, creating one or two jobs. This is probably enough to reduce the pain of the current economic downturn. Just take one example, the electronic books market in the UK is three times larger than the French market. E-commerce will hopefully help France to catch up. I

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BT’s record-breaking communications at the Games The appointment of BT as official communications services partner to the London 2012 Olympic and Paralympic Games entrusted the company with one of the most important events in the history of the capital. Roel Louwhoff, CEO at BT Operate, is the person in overall charge of the project

The London Olympic and Paralympic Games must be a flagship event for you?

It is a flagship for everyone entrusted to deliver this infrastructure; it is not a trivial programme, but it underpins the greatest show on earth. For the London 2012 Organising Committee to select a partner is a huge responsibility because they know that a partner can make or break the Olympic Games. How are you preparing to make it then?

Every time we have another Olympic Games the communications infrastructure has to be at least doubled. We want to ensure that the whole backbone is comprised of fibre, which has the bandwidth, resilience and security to deliver the best experience

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for the spectators, athletes and the media. Most broadband internet services are about “intake” – that is, what is the speed you are going to get when you retrieve information from the web. But everyone forgets that the uploading speed has to be high as well. Why is that important? Since the last Olympics we now have tablets, iPads, smartphones, people want to tweet and send videos to social networking sites. Fibre makes this possible. During the Olympic and Paralympic Games there will be more than 27,000 accredited journalists and even more social networkers – that is how big the Games have become. For the first time there will be a cloud solution, which will help us provide agile IP-based services called HUCS – a Cisco-based Hosted Unified Communications Service.

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This means that you are able to integrate everything around voice communications, your handset, your mobiles, blackberries and data communications. Are you actually putting in new infrastructure instead of enhancing existing structures?

We have a good plan around legacy. Once we have built all these facilities, we have a plan about how to use them in the future. Take the Olympic Park, for instance: in the village, we will equip all the apartments where Olympic athletes are staying with super-fast broadband. The internet connection will be as fast as 100 Megabits, which is the highest speed internet you can have. After the Games, this nextgeneration fibre network will remain in place for the benefit of local communities and businesses. Although it is not directly linked to the Olympics, we also have a wider £2.5 billion BT roll-out of superfast fibre-based broadband, which is expected to bring even faster speeds to two-thirds of UK premises by the end of 2014. It will be the largest and fastest roll-out of fibre worldwide so far. What about businesses? How will they cope during the games?

During commuting times it will be more difficult to get into London. People could work from home, but then you need the infrastructure to do that. Business therefore need to be prepared, as you can’t order a flexible working solution two days before the Games start! So, for some time, we have been working with our customers so they can understand what the specific circumstances will be, how they can prepare themselves for the challenges of the Games but also how they can leverage the huge opportunity that the Games will bring to London, a £1bn boost to the economy. And are people listening to your message?

Yes, more and more. Only when you get closer to the Games do people understand the impact. The closer you get to the Games, the more people start to ramp up. They see the site being built and they begin to understand how massive the Games will be. So there is more and more interest in it, and a greater need for solutions as well. What are the technical issues facing those watching the Games at home?

People might want to work, but at the same time they might want to watch the Games. But do they have the bandwidth to watch high-stream television on their desktops, while at the same time hold conference calls, and maybe even host webinars, etc.? You make customers

Roel Louwhoff, CEO at BT Operate

aware and make them see where the issues might be. It is essential for businesses to understand what they need to do. It’s not just about working from home and accessing the company intranet, but a cultural shift in the use of technology to operate more effectively. You obviously see it as a business opportunity.

We are using tried and tested technology on a scale never experienced for a major Games before. Obviously, we want existing and new customers to benefit from this programme. This includes France, which is an important market for us and where we already supply 37 out of 40 top-listed companies. For example, the Olympic Park will be a truly connected stadium with high-density WiFi providing services for spectators and back-of-house services. Communications technology is evolving fast, and the experience and expertise we’ve created can be applied for future major sporting and public events in France and around the globe. Will London set the high watermark of new technology? Will there be another such hi-tech Games?

Each Games represents new challenges and new opportunities. London is very different to Beijing, and Rio no doubt will be very different to London. However, we have come a long way since the first Olympic email was sent in 1984 and the first Olympic website was set up in 1996, and London will be the most advanced so far with the first single-converged infrastructure ever for a summer Olympic and Paralympic Games. I NK

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Bringing intelligence to the railway More than one billion passenger journeys on the UK’s rail and underground network took place during 2011. Trevor Lampen, Strategy Director at Thales UK, outlines the challenges and opportunities lying ahead

he UK transport infrastructure – largely built during the Victorian era – requires revitalisation due to the increase in passenger demand and the necessity to increase its capacity. New build solutions are not always a realistic option, for financial and physical reasons, and this is where information and communications technologies come into play.

capacity. One example of this is the re-signalling project on London Underground’s Jubilee Line, which has increased passenger capacity by 20 percent. The intelligent system calculates the safe distance between trains travelling in the same direction, improving the rate of service in terms of the number of trains per hour.

Making commuters happy Replacing life-expired systems while keeping trains running means introducing technologies and systems that are efficient and intelligent. Moreover, as the sector as a whole is under cost pressures, it is essential to look for systems that can deliver greater capacity at a lower price. It’s also important to ensure the network is ready to comply with new standards, such as the next-generation European Rail Traffic Management System involving the creation of a single Europe-wide standard for train control and command systems. The use of technology can play a significant role in moving people around safely, and to a pre-determined schedule, as well as increasing the transport network’s

Another area of increasing importance for the rail industry is telecoms. The need for being constantly available via our mobile phones has become a necessity, not a luxury. There will be increasing demand for reliable internet and communication access both in a mainline or an underground environment. There will also be a greater need for real-time, multi-modal information for the travelling public, online and via apps, to enable them to make informed decisions as to how they can make the optimum trip from A to B. The acquisition of this data and ‘personalising’ travel will be one of the ICT challenges for the transportation industry in years to come. The advances being made in fixed and mobile telecoms such as 4G will allow the merging of operational and public networks to deliver these advanced systems – the future is already within touching distance. With the implementation of intelligent systems, travel in the UK can become easier, faster and less stressful. I

Staying connected

Key challenges of the Transport Industry: the four ‘Cs’

The re-signalling project has helped the Jubilee line increase its passenger capacity by 20 percent

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Cost: Halve the cost of rail operations Capacity: Double network capacity Carbon: Halve industry’s carbon footprint Customer: Increase customer satisfaction to 99%

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To green or not to green? That is the question

Information technology is the hub of the world’s aviation industry. Airlines are always on the lookout for new innovative ways of simplifying their business model while keeping the customer happy, says Reginald Otten, Public Affairs Manager at easyJet

But should it be? Recent research shows a number of CEOs moving sustainability and ‘green ICT’ down their agenda while focusing more on greater efficiency, energy reduction and cost savings, says Jonathan Tapp, Managing Consultant at Capgemini UK

The 200th easyJet airbus

ICT help enhance security and deliver an endto-end passenger experience that is easy and affordable. Intelligent systems and software help lower engine emissions and reduce operating costs. Cloud computing is being deployed in planning flight routes and crew rostering. Things are not limited to operations – the booking systems are following suit. Cloud solutions are being looked into as a way of releasing airlines away from check-in desks and circumventing some services on offer at airports. Knowing, understanding and predicting your customers’ needs and expectations is vital for an airline to succeed. Smart travel is about providing individuals with real-time travel information, remembering that physical tickets are a thing of the past. Mobile devices provide a great platform for implementing smart solutions – launching apps allowing passengers to search fares, and book and change flights while on the move is a must. You’ll be checking in via your phone before you know it! In an age of ash clouds and extreme weather, it is essential to help the customer cope with disruption too. Smart systems are being introduced to keep the traveller informed and to better manage the impact of unpredictable events on their day-to-day travels. The pace of change that information and communications technologies bring to the sector is unrelenting. Staying on top of the tech revolution is the best way forward for businesses and of true benefit to their customers. I

This really is a paradox and increasingly businesses are realising that there are more sustainable ways of doing business that achieve all the desired outcomes – especially cost savings – and enhance employee well being, involvement and the organisation’s reputation along the way. Moreover, this is not the exclusive province of large organisations with huge ICT budgets. There are some simple things that all companies, irrespective of size, can do that will radically reduce costs. Here are our top three: Print double-sided and in black and white. A managed print service will deliver significant reductions in paper and ink costs to major users but even in small organisations, manually changing default printer settings will put money straight onto the bottom line. Switch off your PCs at night. Large companies can afford to buy software that does this automatically but you’d be surprised at how much can be achieved by simply asking your people to do this. Finally, travel. Large organisations can invest in video conferencing to cut their travel costs and carbon footprints but smaller firms should look at using voice and video messaging services such as Skype, FaceTime or Google Talk. So, before dismissing green ICT as an unaffordable luxury, think again! I

Thinking smart to travel fast

Large companies have huge ICT budgets

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We need better infrastructure to keep up with our workload British people currently lead the way in Europe when it comes to the acceptance of new technologies. This rapid adoption is something to cherish but it also comes at a cost, says Raphaël Fainac, Managing Director at Sagemcom

roadband resources today are stretched and they may not suffice tomorrow without further investment in the infrastructure. At present, people already have the ideas to maximise the potential but at this point the thinking is ahead of what the infrastructure can support.

Finally, the UK government has invested to develop eservices and e-education far more than in France.

Winning the tech race The UK Government knows that to maintain these standards it has to invest in the availability and takeup of broadband services. They have ambitions to provide all homes and businesses with access to at least 2Mbit/s broadband and that superfast broadband should be available to 90 percent of people in each local authority area. £530m has been allocated to providing the UK with the best superfast broadband network in Europe by 2015. Local Authorities have been directed to develop their own plans on how superfast broadband access will be rolled out in their area and to apply for a share of the £530m. Everybody is keen to see infrastructure in place to keep up with the wider deployment of technology. Watch this cyber space. I

Britain: technologically up-to-date Despite a fragile economy, active consumerism of the British has never wavered and new technologies are accepted far more rapidly in the UK than elsewhere. More than two thirds of British companies have their own website, over 70 percent of British households have a broadband connection and twice as many smartphones or tablets are sold in the UK than in France. The flat screen TV market has already reached saturation point with two per household and consumers are showing a clear interest in IP TV, TV on demand and catch-up services. BBC iPlayer ensures the British people never miss their favourite TV programmes. A reliable connection and bandwidth are key. The British consumer spent twice as much online as the French consumer last year but it’s not just a modern approach to watching TV and shopping – they embrace broadband during the working day too: 23 percent of British employees use broadband connections to either work from home or remotely from the office. Work has become something we Map of IPTV countries of the world. The blue areas denote countries where IPTV do rather than somewhere we go. is available in at least some parts of the country

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e-Commerce: it’s time to talk shop A flurry of technical innovations – most notably the emergence and rapid adoption of smartphones and tablets – has transformed the shopper-seller relationship. between the customer and the retailer

n the last decade, the internet has provided consumers not only with easily accessible information about products, and the ability to compare their features and prices, but it has also given them the convenience of one-click shopping without the necessity to leave their house.

British online retailers leading the way Investing in infrastructure to enable this change in consumer behavior has proven beneficial from retailers’ point of view. Marks & Spencer turned its heavy investment in IT into a 22 percent growth in sales in its online Direct arm in the thirteen weeks to 31 December compared to a year earlier. The success of M&S, as the high street continues to suffer, is matched by an astonishing web performance at Next and John Lewis. Next’s online revenues in the five months to 24 December grew by 16.9 percent, which might be due to their deal with Cable & Wireless in 2010 covering technology that underpins ordering, stock management and application performance for online operation. John Lewis, in turn, enjoyed a 42 percent rise in web sales in the seven days to 23 December compared to the previous year, following the overhaul of their website and the introduction of its mobile format.

The French follow suit In the UK, the reach of retail websites was almost 90 percent in January 2011. As a result, the UK was the leading European country in the category, followed by France. Across the English Channel, the amount spent online is continuing to grow, as the French are dedicating more of their winter budgets to online purchases. E-commerce revenue and sales were

estimated at 22bn euros in 2010 versus 43bn euros in the UK.

It’s time to take action E-commerce seems to be at the top of individual retailers’ agendas. Public bodies, as well, are not oblivious to its potential. The European Commission, for instance, has taken a keen interest in the growing trend towards online sales. It has unveiled an action plan for doubling the volume of e-commerce in Europe by 2015. It says the internet economy creates 2.6 jobs for every offline job lost. E-commerce has enjoyed a growing success. However, to fully benefit from the opportunities that it presents, retailers and consumers alike need to overcome some obstacles that still prevent them from investing fully in online services. These include ignorance or uncertainty about what services are available, about offers that lack transparency and are hard to compare, and payments and modes of delivery that are often expensive and unsuitable. Investing in the right kind of infrastructure, such as mobile apps, is also paramount. I AK

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focus Part three: Looking ahead

The logic of technology-driven business innovation Recent years have brought about an increasing separation of information content from the technologies by which it is produced and disseminated. Jannis Kallinikos, Professor of Information Systems at the London School of Economics, explains

he separation of content from particular software/hardware configurations has spawned a series of industries and organisations that aggregate and recombine information to produce new products and services. This development applies to the music and publishing industries, travel and online shopping, blogs and news websites. It has also given rise to “business analytics” associated with “big data”. Crunching content may generate new products and services and thus raise profitability and productivity.

One device, many applications A similar trend can be observed in the separation of software applications from hardware devices. One single device can run a range of “apps” by using so-called multiplatform content delivery. Just think of video or news content delivered over television sets, laptops and desktop computers, or mobile handsets. Another important development is user-generated content produced within and disseminated through social media, such as Flickr, YouTube and Facebook. The sharp distinction between consumers and producers that has sustained traditional business organisations and their

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MSc Management, Information Systems and Innovation

The London School of Economics and Political Science (LSE)

The Masters in Management Information Systems and Innovation studies organisational innovation enabled by information and communication technology in business and government across the world. Information systems drive modern business and public services, the internet is changing drastically how we form and share information, and knowledge in the networked society crosses all boundaries and challenges all previous models of organising business and government. We admit students with diverse academic backgrounds. We welcome applications from computer science and business studies graduates, as well as graduates of social sciences and natural sciences wishing to transfer their focus towards management, the internet and innovation.

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profit has therefore changed forever. As a result, we can now speak of an “attention economy”: by providing free services to users, a website attracts the attention of advertisers and thus generates revenue.

Crossing boundaries These trends work together to construct another logic by which activities are not tied to industries. Once, standard components in traditional industries were industryspecific. For instance, spare parts from the automobile industry could only rarely cross the boundaries of that industry and be used elsewhere, for example in domestic appliances. By contrast, information-based One device can runs multiple “apps” components, products or services are now no longer rigidly tied to particular software will be. I applications or devices. As a consequence, they can

easily be brought to new uses. This is how the iPhone crossed the boundaries between mobile telephony and music consumption (iPod and iTunes), or the Amazon Kindle repackaged the venerable artefact of the book for e-reading. Information technologies not only provide discreet and manageable resources – they have also created new platforms upon which products, services and operations are increasingly designed to be brought to a range of uses. These trends seem pervasive and hard to contest. Yet to be discovered is how they will interact with the established economic and political structures, and what their ultimate business or managerial implications

“SoLoMo”: are these the three wise men of the digital age? “SoLoMo” – short for Social, Local and Mobile – is changing the landscape of mobile application development. Sarah Plans, Branch Manager at AMJ UK, points to its ever-expanding business potential More than a buzz word, “SoLoMo” represents a mobile internet trend, resulting from the recent dramatic changes in the way smartphone users respond to mobile adverts, which are enhanced by location-based services. According to a recent survey by Deloitte, 67 percent of consumers use their smartphones to find store locations, 59 percent to compare prices, and 51 percent to obtain product information. Over 40 percent check product availability, read reviews and shop online. Many of these activities are facilitated by social networking sites. Statistics show that there are plenty of opportunities for internet marketers able to integrate SoLoMo into their online strategies: reaching customers where they are active and adding value

to their experience. Whether this involves offering information, discounts or advice, innovators in this field can meet these needs by providing relevant, useful and engaging mobile apps. SoLoMo, like the three wise men, comes bearing gifts for businesses and consumers. Many large organisations, such as Facebook, Groupon, and Foursquare, have already integrated the concept into their business strategies, and are setting an example for other companies. Today, SoLoMo is a reality, and though still in its infancy, it is expected to grow as quickly as the mobile technology that bore it. Whether you’re an entrepreneur, investor or consumer, don’t put it off – embrace SoLoMo before the competition leaves you without a star to follow. I

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One click can take you there: networking today With the recession continuing and bank loans ever harder to come by, even firms lacking a marketing or sales budget can attract new clients, says Danny Bermant, Founder and Director at Brainstorm Design

he straightened economic times may seem to constrain business opportunities – yet there are solutions around, and one is to get on LinkedIn. Not only is it (mostly) free but it enables you to make direct contact with your target audience. Described as the “Facebook for business people”, LinkedIn has over 100 million users in more than 200 countries, and it enables you to get introduced to new clients without having to make cold calls or advertise.

Not only are prospective clients more likely to meet me – they’re more likely to convert into business because they were introduced by a friend. The more connections you have, the more likely you are to be connected to potential clients. Growing your network means adding your work colleagues, your suppliers, your friends and your clients.

Sea change in attitudes With shrinking sales or marketing budgets, there is more pressure on all employees It’s not what Friends in need to bring in more business, particularly at you know, it’s It all works on the principle that if we who you know board level, where executives invariably mix in the right circles, we are only two - and how you have ties with decision makers at other or three degrees away from the contacts connect to them companies. But this will require a sea we want to meet. Let’s say I’m a lawyer on LinkedIn. change in corporate culture. who is interested in doing business with Before, new business development was accountants in Manchester. When I search always the work of account managers and for them on LinkedIn, I can also see which sales reps. Suddenly, partners and chief of my friends know these accountants and can then executives are finding themselves at networking ask my friends to introduce me to them. meetings without being quite sure what to do. With this in mind, HR departments need to invest in proper sales training. If you want your employees to act as sales reps, you need to teach them how to network and how to sell. You also need to incentivise and reward staff who bring in new business. Regardless of how strong your brand is, what sets you apart from your competitors is the ability of your staff to exploit their connections. To update the old saying, it’s not what you know, it’s who you know – and how you LinkedIn has over 100 million users in 200 countries including US President connect to them on LinkedIn. I Barack Obama

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Staying in tune with music fans The emergence of online music services has revolutionised the way we browse and discover new music. Mark Foster, Managing Director of Deezer UK, explains how companies make use of technology to satisfy their customers’ taste

he greatest challenge faced by an online music provider is how to make the right match between music fans and artists. These days, analytical tools can recommend the right sort of music to suit each individual user’s tastes. Algorithmic analysis has fundamentally changed the way that companies serve their customers online. It has allowed them to target their audience much more effectively. And of course, greater availability of reliable and faster wireless broadband will enhance consumers’ experience in the future. Naturally, music tastes are intensely individual, and algorithms alone cannot provide a fully-rounded,

personalised experience. Customers respond much more to “word-of-mouth” recommendations from trusted people, be they Facebook friends (which is why active integration of social media is so important) or experts from specialist publications. Technology moves so fast that users are sometimes unaware of how it can help them. Yet if they harness that technology, they can make informed choices and save time while browsing. This is why companies must spend more time on the editorial side of an online music service. It is equally important to help customers understand how to optimise their use of technology to navigate within the digital world. I

From the phonautograph to the iPhone We have clearly gone a long way since the invention of the first device capable of recording sound signals – Léon Scott de Martinville’s phonautograph, patented in France in 1857. Disc-style gramophones, phonographs, analog cassette systems provided music-lovers with their favourite music for more than a century.

The Phonautograph invented by Frenchman ÉdouardLéon Scott de Martinville in 1857

In 1979, Sony revolutionised the way in which music was consumed by introducing the Walkman – a new way of listening to music on the go. The portable cassette player gradually gave way to portable compact disc players in the 80s and minidisc devices in the 90s. Today, the term “digital audio player” most commonly refers to portable music players that use non-removable, erasable digital media instead of removable media as a means for storing and playing digital music recordings. The MP3 format quickly proved superior to the relatively hefty discs, and it achieved meteoric success with the introduction of Apple’s first iPod in 2001. The launch of the iPhone six years later allowed Apple to combine the attributes of a mobile phone with a digital music player, and the world instantly fell in love with the new device. Today, despite attempts at regulating the online music industry, file sharing remains an extremely controversial issue. We cannot deny, however, the extraordinary convenience of digital music and the fun that it brings. The speed of change seen in the last three decades should make us wonder: what’s next? I AK

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Welcome to the Cloud Over the past few years no concept in the world of computer technology has generated more “buzz” than Cloud Computing. Anne-Sophie Monnier, Executive Assistant at OVH Ltd, explains the phenomenon

Speed and flexibility But what exactly is Cloud Computing? Imagine hundreds of thousands of servers clustered in different locations worldwide and linked by a common network – the internet – allowing for unprecedented economies of scale. As such, Cloud Computing comes as a service: resources, available immediately and billed according to usage. IT is no longer a cost centre for a company, it’s a commodity: welcome to the “Cloud”! In the era of web 2.01, social media tidal waves can appear and disappear in the blink of an eye. Where will the next one occur and how can a company be prepared for the exponential traffic and power requirements associated with it? Cloud Computing brings the solution, offering the possibility to rapidly add resources, such as CPU, RAM, storage capacities, allowing your infrastructure to evolve temporarily to meet the challenge. Flexibility and scalability are certainly one of the most significant benefits of the Cloud. An entire infrastructure can be available virtually in a matter of minutes, and new projects launched in a matter of seconds, while it used to take months to build an infrastructure. Environmental benefits and more The absence of physical infrastructures is also synonym with lower costs. A company no longer needs to invest large amounts of money to build a data centre. It can

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ccording to some, the Cloud is the next generation of hosting solutions, a new way of thinking the relationship between corporations and their IT infrastructure. For others, it should be scrutinised with caution and seen as a potential source of threat. For all those hopes and fears, it is important to realise that this revolution is still at a very early stage, and that its innovation potential remains, for the moment, vastly underexploited by most organisations.

rent it. In this way, Cloud Computing also eliminates structural overallocation. A company only pays for the resources it uses and returns them once they are no longer needed. On a purely environmental level, this also represents a significant cut in energy waste. In this day and age, something no one turns a blind eye to. Konbini, the French web-TV gets more than 150, 000 visits a day and broadcasts about 10 million videos each month. At the forefront of web 2.0, the company moved its infrastructure into the Cloud in the first half of 2011. Results were spectacular: IT expenses divided by 3, the ability to scale up and down its hosting power with a single click, and the possibility to focus on its core activity resulting in the creation of a new time-shifting feature. This is perhaps the best example of the Cloud’s full potential. From being a simple tool used to cut costs and simplify corporate IT, Cloud Computing is gradually turning into a project accelerator and radically changing the way companies approach their line of business. This ship hasn’t sailed yet... but you might want to get onboard very soon. I 1 A Web 2.0 site allows users to interact and collaborate with each other as creators of content, as opposed to websites where users are limited to the passive viewing of content.

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Selecting the right package for adopting Cloud-based ICT When it comes to cloud computing, a “one size fits all” approach is rarely appropriate. Mehboob Dossa, Partner, and Alan Holliday, Associate, both of McGuireWoods London LLP, explain

to be provided by a number of vendors. For example, he pressure to reduce technology overheads and the opportunities created by a growth in although you contract with X Ltd, they may hire communications bandwidth coupled with rising capacity from Salesforce, Google, Amazon, Microsoft internet literacy is leading to CIOs at all levels to reor others. Carefully consider what data you are putting evaluate their use of technology and the benefits that into the cloud and where the servers are based. Does cloud computing offers. the upload of your data trigger a transfer of personal As a wide range of cloud products continue to information outside the EU? Are you complying with launch, the supporting legal framework has to evolve your data protection obligations when uploading data to keep pace, requiring providers and users alike to into the cloud? keep up with the market. As such, a key challenge for CIOs is to understand the Data ownership and licensing type of cloud services available and the Similarly, be aware of whom you are giving Risk assessment merits of each. access to your data and the extent of their One of the main distinctions to should be made rights. It is not unusual for a provider’s grapple with is whether your business against the standard terms to include a perpetual sensitivity of the will best be served by a cloud service and irrevocable licence over uploaded which is multi-tenancy (“public”), data uploaded, data. Whilst the use of that data is often single tenancy (“private”), or a hybrid. which governments restricted, ensure that you carefully In each case, thought must be given to can practically consider any rights granted. business needs. enforce their laws,

Standard or bespoke terms?

Conflicts of law and international protection The nature of cloud computing is inherently cross-border, particularly if access and/or providers are available across multiple jurisdictions. Risk assessment should be made against the sensitivity of the data uploaded, which governments can practically enforce their laws, and how disputes will be resolved. Overall, although cloud computing has developed rapidly, the underpinning principles remain well known to legal advisors. With careful due diligence and legal support, cloud computing can be a significant benefit to many organisations. Nevertheless, moving forward without consideration of the underlying issues is likely to expose business to unnecessary risk and expense. I

and how disputes will be resolved.

Whilst public cloud services benefit significantly from economies of scale, services are usually provided “as is”, with very little room for customisation or negotiation of terms and conditions. This “one size fits all” approach is rarely appropriate. Terms and conditions should be thought about carefully; we should be particularly wary of standard terms which are one-sided or include lock-in provisions making it difficult to move your data to another provider without incurring considerable cost.

Data protection and due diligence Be aware of who your service provider is. It is common, particularly in public clouds, for services

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Hazards in adopting latest technology Cloud Computing has recently become a growing trend in ICT. Appealing as it might sound, it is not risk-free – Geraldine Fabre, Partner, and Julie Nash, Solicitor, both of Pritchard Englefield, send a warning

loud computing appeals to companies wanting to increase their capacity or add capabilities to their IT systems without having to make upfront investments in new software, servers, hardware or training personnel. Other highlighted benefits include low and fixed periodic service charges, improved support and maintenance, anytime anywhere access, elasticity of on-demand services, and the possibility to outsource carbon usage to external organisations. Cloud Computing is not, however, risk-free. One key issue relates to the fact that services are usually run over long periods of time. This requires maintaining the service provider’s security accreditations and certifications over the years, as well as its product/service development plan and service levels. Users should also consider details and pricing for training and configuration assistance, trial and acceptance periods, service credits, termination thresholds and any transitional services on termination of the arrangements. Certain risks are not always warranted in the agreement, particularly

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when contracting on the provider’s standard terms. The customer’s lack of control over the data, content and storage, and the provider’s possible liability for loss of data and breach of confidentiality are other key issues. Service providers should be asked to explain their contingency and disaster recovery procedures, and to offer, when appropriate, to vouchsafe the object code, source code and the backing of data elsewhere. Once these issues have been considered, cloud computing can be embraced with real benefits for companies. I

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Social media in the workplace: to tweet or not to tweet A simple prohibition of the use of social media in the workplace is not an answer to the social media phenomenon. Instead, employers need to regulate its use in order to embrace its opportunities for their business, says Emmanuelle Ries, Partner at Miller Rosenfalck LLP

ost employees now have access to social networking sites on their mobile devices so prohibiting access to social media on work computers is no longer an answer to policing its use in the workplace. Moreover, banning it is not a particularly attractive option in a world where social media can be used to market services and products, and employees are the employer’s best tools to do so.

Digital misconduct

Employees and employers should also note the case of Crisp v Apple where Mr Crisp was dismissed by Apple for having posted comments on his Facebook page commenting on the performance of an Apple product and as such infringing Apple’s social media policy by attacking Apple’s brand reputation. Apple has a very complete social media policy stating that ‘disloyal’ comments by employees will be dealt with as misconduct and the dismissal was held to be fair.

The issue for employers now LinkedIn contacts and Twitter has shifted from a policing followers Social media in the workplace is hard to police A newly hired employee can attitude prohibiting the use of social media to a risk and damage limitation strategy quickly add company clients to his LinkedIn Account promoting a responsible use of social media by and take them away with him on leaving. If a project employees. A dismissal sanction for digital misconduct, given to an employee involves building their profile for example, will be looked at by the courts in England or creating a group, then the contacts will most likely and in France along the same principles as ordinary “belong” to the company and accordingly should be “left misconduct. behind” as company property upon departure. However, this approach may prove difficult from a legal point of view (where for example the employee’s profile Freedom of expression and right to a private life Employees have sought to argue that their dismissals contains data that does not belong to the employer) and on grounds of digital misconduct infringed their would be practically pointless if the clients had strong personal connections with the departing employee. fundamental human rights and principles of respect for private correspondence and freedom of speech. In Social media is now an integral part of our work England, the dismissal for misconduct of a manager lives and employers need to anticipate issues that may arise, and set out their expectations of their of a pub following her posting of offensive and rude comments about two customers on her Facebook page employees’ use of social networks at work, both in the employment contract and in the staff handbook. was held to be fair and not to infringe her rights to Reviewing employment contractual documentation privacy, even if the comments were visible only to her “close friends” as opposed to her 646 “friends”. should be an early priority in 2012. I

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focus

Beware the new technologies! We are allowing machines to eat into our relationships, our decisions, even our workplaces and homes. The result is a poorer life as sentient human beings, and not necessarily more productivity at the end

he machine has become too powerful and is overtaking our lives and our personalities. That is the provocative view of Bryan Appleyard, an influential commentator on ICT and author of a controversial new book1. He points to the way the Internet is used to find partners, to communicate with companies, to determine in part what products we buy and what life choices we make. The human being is at risk of being overtaken by computers and smartphones. Appleyard warns that unless humans assert their identities and independence from technology, the machine will make the human personality redundant. ‘Machines want to make us readable, so they can get more out of us’, he says. ‘The remarkable thing is that people go along with this.’ The machine has turned the table on its makers, becoming the master rather than our slave. ‘Gadgets are claiming our lives and want to sell things to us. They are hovering up a lot of information about us.’ He expresses particular concern about the alacrity with which children have embraced texting and tweeting. ‘This is a crushing burden on them, it is cutting them off from one another, rather than bringing them together.’ Parents are just as culpable, spending more time on their mobiles than talking face-to-face

Technology is isolating people from one another

to their families. Some commentators in the United States have put this even more boldly, saying that the world of virtual or pseudo-friendships (through the internet or mobile phone) has become more important than their real-world friends. ‘We are becoming our machines, this has never happened before.’ The computer is not a mere machine. ‘They suck information out of you, they take up time in your life.’ He points to the view of some commentators that by 2045, a machine will be built called ‘singularity’. This will represent the most powerful, but last machine ever built, as it will combine every technology and competence. Meantime, he disputes whether computing has made us more efficient, arguing that we spend much more time reaching decisions and making arrangements using email, than we would do in the course of a five minute phone call. Likewise, he resents deeply the time we are forced to spend on ‘phone-trees’, (the series of predetermined choices made by pressing phone buttons or answering yes and no) arguing it is time spent at the customer’s expense and therefore wasteful. The machine enables a form of contact between human beings that lacks depth or satisfaction. Yet, people, in particular the young, feel a compulsion to pursue, even depend on such inadequate contact. The collapse in the financial sector was likewise precipitated in part by the use of machines operated in the City of London. These facilitate transactions and communications which may have the virtue of speed and complexity, yet lack the restraining force of human judgement and insight. Appleyard queries how much of the global wealth has been lost as a result of the crisis. The author of the book believes that humans either act now, or see themselves depersonalised by technology. It is a salutary, even terrifying argument, but one that, in our heart of hearts, we all understand and perhaps concur with. I NK 1 The Brain is Wider than the Sky: Why Simple Solutions Don’t Work in a Complex World. Published by Weidenfeld & Nicolson.

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london transport museum

Sense and the City: smart, connected and on the move

In partnership with the Royal College of Art, supported by the Centre for Advanced Spatial Analysis at University College London, Massachusetts Institute of Technology, Clear Channel and Native Design. ||| This fantastic exhibition explores how emerging technologies, such as smartphone apps, open data and GPS, are redefining Londoners’ experience of the city. The displays look into the evolution of electronic devices and their role in the social and economic life of the capital. The project juxtaposes today’s perceptions with memorable images showing past visions of the future proposed by artists such as Le Corbusier and Archigram. What arises from such comparisons are questions about the shape of future life in the capital. Accompanying the display are therefore the Visions of Tomorrow, a project by students of the Royal College of Art presenting their visions of a further evolution of technology over the next decade. The interactive nature of the exhibition allows visitors to join in and give their views on the impact of digital technologies on their lives. Visitors can also immerse themselves in “beautiful data”: screens projecting ground-breaking data visualisations from such eminent developers as Carlo Ratti of MIT, Aaron Koblin of Google Creative alongside up-to-theminute work from students at the Centre for Advanced Spatial Analysis at University College London. I Until 18 March 2012 / £10 – £13.50

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What’s on? section of the house to metal pots and plastic bowls to blankets, bottle caps, toothpaste tubes and toys, the display unveils the life of a typical Chinese woman through the objects she owned. It is also a personal meditation on family and the artist’s own life during the Cultural Revolution. I 15 February 2012 – 12 June 2012 / admission free

BRITISH MUSEUM Grayson Perry: The Tomb of the Unknown Craftsman Supported by Alix Partners, with Louis Vuitton At the heart of the Turner-Prize winning artist’s exhibit is his extraordinary new creation: The Tomb of the Unknown Craftsman, a decorated cast-iron coffin-ship commemorating forgotten artists. The exhibition also features a selection of Perry’s ceramics, tapestries and metalwork displayed alongside similar items coming from the British Museum’s own permanent collection. The show examines themes of craftsmanship throughout its history, and constitutes a fantastic memorial to makers and builders. I Until 19 February 2012 / free – £10

french institute Destination Moon and Explorers on the Moon Here’s a good opportunity to remind the younger generation of the original stories from which the recent Adventures of Tintin take inspiration. After receiving a telegram from Professor Calculus, Tintin and Captain Haddock join him at the atomic centre in Syldavia. However, with secret documents stolen, Tintin insists first on finding the spy as their expedition to the moon beckons. I 28 January, 11.30 am / £5

BARBICAN CENTRE – THE CURVE

Museum of London Dickens and London Recreating the atmosphere of Victorian London through sound and projections, the visitor will be taken on a haunting journey to discover the city that inspired his writings. Paintings, photographs, costumes and objects will illustrate themes that Dickens wove into his works, while rarely seen manuscripts including Bleak House and David Copperfield – written in the author’s own hand – will offer clues to his creative genius. I 9 December 2011 - 10 June 2012

NATURAL HISTORY MUSEUM

Song Dong: Waste Not

Veolia Environnement Wildlife Photographer of the Year 2011

This installation comprises over 10,000 items obsessively collected by the artist’s mother over five decades in her Beijing apartment. Ranging from a

Marvel at the best nature photographs on the planet in this celebrated annual wildlife photography exhibition . I 21 October 2011 - 12 March 2012

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David Hockney and Lucian Freud (R)

NATIONAL PORTRAIT GALLERY Lucian Freud Portraits Supported by Bank of America Merrill Lynch; Spring Season 2012 sponsored by Herbert Smith Lucian Freud (1922 – 2011) was one of the most influential artists of his generation. He not only spent hours transferring his sitters’ personality and likeness to canvas, but strived to convey the psychological intensity of his relationship with the subjects of his paintings. The new exhibition at the National Portrait Gallery brings together works depicting Freud’s friends, lovers and family members, including fellow artists such as Frank Auerbach, Francis Bacon and David Hockney, to illustrate his stylistic development and technical virtuosity. This riveting exhibition features over a hundred works, some of which have never been seen before. I 9 February – 27 May 2012 / £12 – £15.40

Royal Academy of Arts David Hockney RA: A Bigger Picture Sponsored by BNP Paribas The Royal Academy launches 2012 with a major exhibition of landscape works by David Hockney. His large-scale paintings, created especially for the Academy’s galleries, are inspired by the East Yorkshire landscape and span a 50-year period. They demonstrate a journey undertaken by the artist in his long exploration of landscape. Hockney has gained international acclaim for his experimentation and innovation in painting and photography. It is therefore not surprising that the exhibition features original works such as iPad drawings and a series of films produced using 18 cameras. I 21 January – 9 April 2012 / free – £15.50

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book reviews

Marilyn’s Last Sessions by Michel Schneider, translated by Will Hobson. Canongate Books.

||| Biographical writing is a task that carries great responsibility, which Michel Schneider has always taken seriously. Having previously written on Baudelaire, Proust, Schumann and Gould, this French psychoanalyst once again sets off to explore the subconscious of a star, and this time it is one of the most charismatic figures of the twentieth century – Marilyn Monroe. Schneider’s new work is based on transcripts of conversations between Monroe and her psychoanalyst Dr Ralph Greenson. During the final years of her life, Marilyn had become increasingly reliant on Greenson. Their almost daily meetings put him in the role of not only her psychiatrist, but also a friend in whom she liked to confide. He was the last person to see her alive, and the first to see her dead. Schneider’s novel brilliantly recreates the atmosphere of these final encounters and raises the question of where lie the boundaries between emotional engagement and professional objectivity. The story, told partially in Marilyn’s own words, remarkably

illuminates the workings of Hollywood and its close link to psychoanalysis. Michel Schneider’s quasi-documentary account of the relationship between a star and her psychiatrist is intelligent, sympathetic and sometimes moving. I

Lacrimosa

to the bone. Lacrimosa is a perfect way of introducing the works of this controversial, yet acclaimed author to the English reader. The cathartic experience of this poignant dialogue will certainly encourage French-speaking fans to explore the world of Jauffret’s remaining fourteen novels, or lead to more translations being published in the UK. I

by Régis Jauffret, translated by Vineet Lal. Salammbo Press.

||| This novel by the awardw i n n i n g author is an ode to a lover who is gone and is not coming back. The young Charlotte, who committed suicide, lives on in the conversations that the author has with her lingering spirit. The story takes a form of a dialogue, full of laughter, tears, anger and despair. The narrator and his companion tell the tale of a bond that persists despite absence, and of love that lingers on in defiance of death. The devastating beauty of the story is conveyed to the reader without pathos or over-indulgence. The emotion is never far from the absurd, and despite its intensity remains sincere, moving and even provocative. Indeed, Jauffret’s works have often been described as written with a scalpel, stripping life

The Origin of Violence by Fabrice Humbert, translated by Frank Wynne. Serpent’s Tail.

||| TThe story begins with a young French teacher coming across a photograph of a man who looks like his father, Adrien, during a school trip to Buchenwald concentration camp. Upon his return to France, the persisting memory of the familiar face leads the protagonist to embark on a search for the mysterious man. This draws him into the dark hearth of his own family. His exploration of Nazi history brings him face-to-face with his own capacity for violence. Humbert’s moving novel is the winner of the inaugural French Orange Prize in 2009 and the Prix Renaudot’s Livre de Poche Prize. I

These books, written in french and recently translated into english, were selected by the French Institute

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w i n e p r ess

Cheese of the month by La Cave à Fromage: Beaufort ||| With its complex and historical nature, its heaviness and interdependence, Beaufort evokes the idea of a European summit. This pure and unique cheese comes from the mountains, and from within strict geographical boundaries. It is part of the Gruyère family of cheeses and it has acquired its nobility through turbulence and turmoil. It has been on the verge of extinction twice – most recently in the early 1990s. The milk used to produce Beaufort was then the most expensive in France whilst farmers producing it had the lowest income. A global rethinking of regional farming activities has since taken place. Farmers are now busy from late spring till early autumn, as well as during the winter sports season. During the French Revolution, 10,000 tonnes of Beaufort were ordered to feed hungry Parisians. Fortunately, there is enough left for Londoners. I

London’s best cheesemonger

Time Out

Delicious and unique CHEESES to impress your guests for any event www.la-cave.co.uk

08451088222

Wine to accompany Beaufort by Wine Story Beaufort

||| For Beaufort ageing from four to six months, I can recommend dry white wine like Chablis. The acidity of this Chardonnay from the North-West of Burgundy will match the acidity and the saltiness of the cheese, at the same time allowing us to appreciate the milk, butter and honey flowers aroma of the cheese. For older and more mature cheese aged for one year in a cold cellar (8˚C with 98 percent humidity), why not try the floral white Seyssel from Savoie made with Roussette (also known as Altesse) and Molette AOC since 1942 or more powerful Meursault to match the nuttiness. I

A glass of Chablis

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The stormy world economy. Get the trusted, global guide. Our unrivalled network of journalists provides essential international coverage. For a 4-week trial, go to www.ft.com/FT4

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News @ the Chamber Chamber events put service as a core value

ollowing a period of very successful end-of-year events, the Chamber started the New Year with: - The publication of its 2012 FrancoBritish Business Directory - The appointment of Frédéric Larquetoux, Senior Manager at Ernst and Young, as the new co-Chair of the SME and Entrepreneurs Club - The appointment of Rose Gledhill, HR Director Northern Europe at International SOS as the new chair of the HR Forum The importance of service to success in business resounded through the many events that the Chamber held over the last two months. It was very much the theme of Angela Knight’s – Chief Executive of British Bankers’ Association – address to the Annual Financial Lunch and of the FrancoBritish Business Awards held in Paris. Patron members discovered the newly-refurbished beautiful restaurant of Sofitel London St James at an event attended by a special guest speaker Denis Hennequin, Chairman and CEO of Accor. Arnaud Bamberger’s – Executive Chairman of Cartier – speech to the CEO Breakfast emphasised the point that the service-centred company prizes loyalty and looks after its clients. No one who attended Mr Bamberger’s speech could have doubted his passion for service and customer care. A seminar on data protection sponsored by McGuireWoods, raised important questions of much relevance to business leaders.

This year, we will look forward to the next CEO Breakfast, addressed by one of the Chamber’s visionary leaders, Jean-Dominique Mallet of Veolia Environment, who has championed Veolia’s remarkable progress in the UK and whose passionate belief in protecting the environment is a case study for the service sector. Knight Frank and Gregory Rowcliffe Milners will kindly host a seminar providing an overview of the London residential property market and aiming to predict the trends in the coming year. The Chamber’s Member to Member Cocktail and Exhibition will see the launch of one of the Chamber’s annual publications: the Member to Member Offers Book 2012. The book, and the event itself, will give our members a fantastic opportunity to promote their products and services to other members. Finally, the Quarterly Economic Update will certainly attract much interest as well, with the presence of Mark Berrisford-Smith, Senior Economist at HSBC Bank Plc. Our patron members will have a chance to take a break from business at a film screening sponsored by Cinémoi. The preview of Bel Ami, based on the novel by Guy de Maupassant, will be introduced by the TV star Jonathan Ross. The subject of service will return for our consideration as we review Chamber events over the course of the coming year. There can be no doubt that this will be a trying period. But Chamber companies are well equipped to weather it. I

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new members 1 New Corporate member:

Le Grand Club: | www.Legrandclub.com Le Grand Club offers a multicourse golf card with unlimited access to 22 courses in France, Morocco and England with only one annual subscription fee that covers playing fees for the whole year. No more greenfees. The “Club partners” in the UK are MoorPark, Cambridge Meridian and Abbotsley. A Golfing Experience is the official UK Agent of Le Grand Club. Represented by Steven Frewin, Director

15 new Active members: Babymoov

Fern Hill SARL

Paul Jaboulet Aîné

Baby products specialist

Assurance

Represented by Anissa Rhnim, UK Business Developer www.babymoov.com

Represented by Howard Borsden, Manager www.fhpartnership.com

Baglioni Hotel London

Jefferies International

Hotel

Represented by Stefania Vati, Sales Manager www.baglionihotels.com

Bodet LTD Software & IT Systems

Represented by Marc Clavereau, Managing Director www.bodet.co.uk

Carpe Diem

Executive coaching

Represented by Philippe Truffet, Managing Director www.carpe-diem-coaching.com

Evidens de Beauté

Luxury beauty products

Represented by Charles-Edouard Barthes, Director www.evidensdebeaute.com

Finance

Represented by Jean-Philippe Verdier, Director www.jefferies.com

Klee Group

Consultancy, Integration and Software development

Represented by Pascal Freret, Country Manager www.kleegroup.com

Represented by Pierre de Jacquelot, Director www.michelperry.com

Represented by Jeanne Monchovet, Founder www.olystix.com

Hotel

Represented by Delphine Delacroix, MICE Sales Manager www.51-buckinghamgate.com

Thousand Suns Energy Solar

Represented by Jean Viry-Babel, CEO www.thousandsuns.co.uk Manufacturer of liquid Storage tanks for fuel, heating oils, water, chemicals, molasses, ‘adblue’

Luxury shoes retailer

Consulting

Taj 51 Buckingham Gate

Tuffa UK Ltd

Michel Perry

Olystix

Fine French wines producer Represented by Caroline Frey, Winemaker www.jaboulet.com

Represented by Robert Shenton, Managing Director www.tuffa.co.uk

Vegaoo.co.uk Fancy dress costumes for any occasion

Represented by Sylvain Ferreira, Director www.vegaoo.co.uk

INFO Magazine: next issue focuses on HR & Diversity ||| Our next issue of INFO will feature a special focus on Human Resources and Diversity. The Focus will be compiled in conjunction with the Chamber’s HR Forum, one of our most active forums. We will include an interview with Rose Gledhill, the Forum’s chairperson and other articles written by forum members. Companies are under pressure to put their employees to best use, as job numbers shrink to save costs. Issues like motivation and productivity rise to the top of the agenda in this tough economic climate. The pressure is now on Human Resources managers

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to explore new approaches. This particularly timely Focus in INFO will look at what is possible in terms of developing employees’ experience, encouraging leadership through training and building teams. At the same time, managers are required to deal with the consequences of making people redundant, an activity that will have legal and cost consequences. New law also puts the onus on companies to upgrade and review policies for building diversity in the workforce. I If you wish to contribute please contact Hannah Medioni on +44 (0) 2070926648 or at hmedioni@ccfgb.co.uk

w h at ’ s n e w

The 2012 Directory* is out!

9 Discover your fellow members 9 More than 1,500 contacts listed 9 Search by sector, company’s name or representative’s name 9 Useful addresses and contacts in France and in the UK

We are currently working on the online version that will be available exclusively to our members soon on www.ccfgb.co.uk *for members only

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recent events : fbba

15 n o v e m b e r

Paris hosts a topical debate followed by the giving of awards The Franco-British Business Awards celebrate innovation, enterprise and successful commercial activity by French and British companies. This year’s group of winners was no exception, as was demonstrated at the event held in Paris

the Award for Innovation and St Pancras Renaissance Hotel, the Jury’s Special Award. The ‘Coup de Coeur’ Award was given to Cinémoi. These companies are profiled on page 70. The event was sponsored by Barclays, Chez Gérard and Mazars and partners to the event were Invest in France Agency, UK Trade and Investment, CCI International and Eurostar.

Michel de Fabiani, H.E Sir Peter Westmacott, Arnaud Vaissié & H.E Mr Bernard Emié

||| The annual Franco-British Business Awards, coorganised by the French Chamber of Commerce in Great Britain and the Franco-British Chamber of Commerce in Paris, provide the opportunity to acknowledge the expertise and success of French and British companies whether large or small. This year’s Awards ceremony, held under the patronage of H.E Sir Peter Westmacott, then British Ambassador to France and H.E Mr Bernard Emié, French Ambassador to the UK, took place on 15 November at the Cercle de l’Union Interalliée in Paris. It was particularly important as it featured a debate between two leading European journalists: Hugh Carnegy, European Managing Editor of the Financial Times and Nicolas Barré, Deputy Managing Editor of Les Echos, who discussed the deeply troubled European economic environment. Trophies were awarded to Tuffa UK, in the SME/ Entrepreneur Award category; Thousand Suns won

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The evening opens The evening was opened by the French Chamber’s President, Arnaud Vaissié and by Michel de Fabiani, President of the Franco-British Chamber in Paris. They welcomed the guests who came from many walks of French industry and commerce, as well as the applicants for the awards. Their addresses were followed by speeches from both ambassadors, H.E Mr Bernard Emié and H.E Sir Peter Westmacott. Both acknowledged the scale of enterprise existing between the two countries; they also said that it was very important to reward and encourage enterprise and the Awards were critical to this. Debate on the economy Following the Ambassadors’ introductions, the gathering was addressed by Hugh Carnegy, who is based in Paris. He assessed the progress made by the British government in introducing an austerity programme in May 2010, recalling the rise in VAT and the impending cuts in the state budget. These amount to some 25% of the state budget over the next five years. He mentioned that the UK had cut taxes for corporates, with a view

recent events : fbba

to stimulating activity. He said such a programme was broadly on track and was aimed at bringing the UK into equilibrium by 2015. Mr Carnegy however, acknowledged that the economy’s slow growth trajectory would put great strain on employment levels. Mr Barré was less positive about the prospects for the French Government’s policy of dealing with its budget deficit. He said the Paris and London governments differed in the confidence they exhibited in tackling their budget deficits, with the UK showing confidence while the French showed a worrying nervousness. He referred to the recent French government publication of a massive report on tax ‘niches’, which compared with a streamlined but more decisive UK publication. The ‘crise de la dette’ across all the Euro-zone economies was testing all governments, he said. He raised the question about the French competence in reducing its public debt and concluded by expressing concerns about the flexibility of the French labour market, a long running and distressing structural issue. Mr Carnegy responded by noting the scale of youth unemployment in the UK, and he said he was expecting UK unemployment to rise as growth levels stay virtually flat.

15 n o v e m b e r

Questions and answers In a subsequent debate, topics were covered including: the sharp difference in the way that France and Germany perceived the role of the European Central Bank; the importance to the French economy of the French Treble A rating; investors attitudes to French economic management; the flexibility of the European Financial Stability Facility (EFSF). Both Ambassadors participated in the debate, insisting that the relationship between the UK and France was ‘complementary’ while saying that the relationship between France and Germany was ‘indispensable’. In response to the suggestion recently voiced in the UK press, that the French government was planning to challenge the pre-eminence of the City of London as a financial centre, H.E Mr Bernard Emié said such perceptions were misplaced. ‘They are creating demons’, he said. He also said that the French people were realising for the first time that they would have to make sacrifices in their living standards as a result of the economic crisis. Mr Carnegy concluded by saying that tough times lay ahead and the crisis was far from resolved. It was a sober note to a fascinating debate. Mr Vaissié and Mr de Fabiani concluded the discussion. The winning companies then took receipt of their awards. I NK

2 011 f b b a w i n n e r s ’ p r o f i l e s

Cinémoi, www.cinemoi.tv, wins ‘Coup de coeur’ Award and film experts, to bring the very best in French cinema. These include comedies and romances, urban dramas, stylish thrillers, intriguing mysteries and arthouse fantasies. Julien Planté, who oversees the company’s programming and selection of films, says: ‘French movies have always been at the cutting edge of global cinema and provide boundless enjoyment for the discerning film fan.’ He continues, ‘Cinémoi is a platform for likeminded viewers to enjoy film beyond Hollywood blockbusters. The aim for our innovative media brand in 2012 is to extend the programming and become the home for World Cinema on British television. The FBBA award is a symbol and an honour for us. Thank you!’ I © flickr/trustypics

||| ‘Cinémoi represents an important breakthrough in the overseas market for the distribution of high quality films. Its innovative launch of a French movie channel in the UK has been widely hailed. Under the guidance of Olly Bengough and Julien Planté, the channel has gone from strength to strength. It has attained the support of Jonathan Ross, the famous UK television presenter. Cinémoi gives unprecedented coverage of the Cannes film Festival and is now bidding for coverage internationally. Cinémoi has forged partnerships with many leaders in the industry, including Unifrance, the CNC, Studio Canal, the British Film Institute, La Cinématèque Française and the Institut Français. Cinémoi works with leading producers, distributors

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2 011 f b b re acw en in t neevresn â&#x20AC;&#x2122; tpsr o f i l e s

FrancoB

BUSINESS

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Tuffa UK, www.tuffa.co.uk, wins the SME and Entrepreneur award ||| Tuffa UK is a family-run business offering a personable service, whose exports to France rose no less than 48 percent over the last year. The business exports some 20 percent to the continent of Europe. Robert Shenton, the managing director has over 25 years’ experience in liquid storage and dispensing equipment. He works with his wife Jackie, who is the Company Secretary. This £4 million company, whose sales have risen 20 percent every year, is the leading innovator in tank manufacturing, a market leader in product design and future technology to assist industry and the consumer. The factory is in Staffordshire.

In response to receiving the award, Ms Shenton said: ‘We were absolutely thrilled and so proud to receive the award which is testament to all our hard-working staff. It is a major achievement and it illustrates that despite the economic downturn there is business out there.’ Expanding their business was hard work, as it involved extensive market research, several visits to France to meet potential customers, and understanding the customers’ needs. ‘This effort is reflected in the number of French clients that we now have. Exporting into France has opened up huge potential for our company’, Ms Shenton commented. I

Thousand Suns, www.thousandsuns.co.uk, wins Award for Innovation ||| Thousand Suns manufactures, sources and distributes the latest in solar energy products to the UK, Europe and beyond. Jean Viry-Babel, one of its founders, says: ‘Whether you just want a couple of solar panels for your roof to do your bit to save the planet, or are looking at your business energy future, we’d love to help you find the best product for your needs.’ The company makes a point of its HR diversity policy, employing disabled people in its manufacturing plant. The company invented and manufactures the Solarpod, together with Laserjet SA in France. Mr Viry-Babel says: ‘The market for alternative energies is

growing exponentially, and is going to continue into the future as the need to move away from fossil fuels becomes increasingly important. Solarpod is unique and competitive in this market. There is room to grow further in this market and move into new ones.’ He says the company will shortly launch a light-weight product, the Solarpod Go, and a more powerful one, the Solarpod Pro. Mr Viry-Babel expressed his pleasure at receiving the award. ‘We all knew we had something really special, something that can make a difference to people’s lives and to the environment.’ I

St Pancras Renaissance Hotel, www.marriott.com, wins Jury’s Special Award ||| London gained an important addition to its portfolio of five star hotels in 2011, when the refurbished St Pancras Renaissance Hotel opened its doors. Indeed, the hotel was voted the number one hotel in the UK in The Sunday Times Magazine’s 2011 Top 100 Hotels in the World. Great care has been taken to restore the metalwork, gold leaf ceilings, hand-stencilled wall designs and the grand staircase. This is a station hotel with the touch of luxury, care and great comfort. The hotel on this site first opened its doors in 1873, having been designed by Sir George Gilbert Scott.

Plaudits have been heaped on to the hotel since its launch. For example, one commentator (who stayed at the hotel) noted, ‘As part of St Pancras station, it couldn’t be better placed for trains heading north and to the Continent, and London’s key landmarks are within easy reach. Its 38 historic suites feature beautifully restored windows and mouldings; the 207 more contemporary rooms are designed to chime with the hotel’s Age of Empire ambience. There is a health club, gym and pool, and a spa with a sauna, steam room, male-grooming salon and Victorian tiled baths. I

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r ec e n t e v e n t s : c eo b r e a k fa s t

- 2

n ov e m b e r

Arnaud Bamberger: Cartier’s Grandmaster of the luxury world Arnaud Bamberger has a long view on building markets, surviving recessions and brand building. His core belief is the virtue and value of luxury, as well as the loyalty to the exclusive clientele who can afford a Cartier product

||| Marketers of luxury brands should look after their most reliable customer base first and only then support the more recent arrivals. That was the message Arnaud Bamberger, the Executive Chairman of Cartier, gave to Chamber members at the Connaught Hotel on 2 November at the last Chamber CEO breakfast sponsored by Relais & Châteaux. Mr Bamberger said he was faced with the challenge, on coming to the UK 19 years ago, of either looking after the “old money” customers, long stalwart supporters of Cartier, or the “new money” who had yet to decide what to spend and on what. He decided to go with the “old money” wealth, and leave the entrepreneurs, until the customer base was solid. However, once the “blue bloods” had reaffirmed their commitment to the brand, he made his appeal, quickly successful, to the newly-acquired wealthy. In this one sentiment, Mr Bamberger underlined his belief in the star-quality and longevity of what all agree is a premium jewellery and watch brand. Mr Bamberger has a length of experience in Cartier second to none, as he has been with the company for 35 years working primarily in the French and British operations. He quipped he had seen everything in his time, ’16 recessions and 20 recoveries!’ The theme of quality and elitism permeated his address. He said that Cartier produced ‘trophies for the elite to reassure themselves that they are part of the elite’. He said such trophies are particularly important in difficult times. But the difficult times do not touch some of his customers, he said. So he has had visits from Indian maharajas who came to the Cartier brothers laden with gems, which they wanted reset. Film and pop stars also look to the firm for its finesse and status. The creation of ‘les must de Cartier’ brand was a

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Nicola Liddiard, Arnaud Bamberger, H.E Mr Bernard Emié, Nathalie Seiler-Hayez & Richard Brown

response to the growing wealth accumulated by the middle classes in the sixties and seventies. ‘We saw the increasing power of the bourgeoisie. We decided to go to the market instead of waiting for them to come to us as we had always done.’ The brand was not merely indicative of the company’s alertness to market changes, but it was also a pioneering exercise. ‘We are leaders, not followers’, said Mr Bamberger. In recent times, the company has been ambitious in appealing to the new wealthy in the emerging markets. High net worth customers have come from Brunei and Qatar to benefit from the Cartier craftsmanship. Mr Bamberger says ‘the new elite look for well-known brands that will retain their value’. The rising star is of course China. He said that Chinese customers account for 15 percent of Cartier UK’s sales and the company has been racing to set up stores in China, with 36 currently opened. This is just over 10 percent of the company’s 320 stores worldwide. I NK

r e c e n t e v e n t s : pat r o n e v e n t

10 d e c e m b e r

Chamber hosts dinner at The Balcon Restaurant ||| The French Chamber was proud to host Denis Hennequin, Chairman and CEO of Accor, as the guest speaker of its last Patron event, held in the newly refurbished and most elegant The Balcon Restaurant at the Sofitel London St James on Saturday, 10 December 2011. The event, sponsored by the Sofitel St James, was attended by H.E Mr Bernard Emié, French Ambassador to the UK and Madame Emié, Denis Hennequin, JeanJacques Dessor, COO of Accor UK & Ireland, Denis Dupart, General Manager of the Sofitel St James as well as around sixty patron members and their spouses. Denis Hennequin’s career is exemplary. He had a long and successful career at McDonald’s, which he joined in 1984 as an assistant restaurant manager. After occupying several positions within the company, Restaurant Manager, Director of Operations and Regional Manager for Greater Paris, President and Managing Director of McDonald’s France, he was appointed president of McDonald’s Europe in 2005, where he oversaw 6,600 restaurants in 60 countries. In 2009, he became a member of the board of Accor, then joined the group as executive director in December 2010 to become Chairman and CEO a month and a half later. Accor is itself a group of distinction and one of the major French blue chip companies. It is a world leading hotel operator, with a portfolio of 4,200 hotels, 500,000 rooms, and 145,000 employees worldwide. It counts 157 hotels in the UK alone. Accors portfolio of hotel brands include Sofitel, Pullman, MGallery, Novotel, Mercure, Ibis, All Seasons and Etap Hotel. The Balcon was opened in October 2011, having been refurbished by designers Russell Sage Studios. It includes a brasserie, the St James Bar, a custom made charcuterie bar and a private dining room seating 14. The St James Bar takes inspiration from Coco Chanel’s 1920’s Paris apartment. The Balcon menus are prepared by Executive Chef Vincent Menager who likes to create dishes that combine sumptuous French cuisine with flavours from around the world. The evening’s chairman, Peter Alfandary, deputy president of the Chamber, thanked Denis Hennequin for a most insightful speech on the state of the hospitality market. The Chamber wishes to thank Denis Dupart, and Corinne Cléret, the hotel’s public relations and communications manager for hosting and sponsoring such a successful and friendly event. I

From L to R: Florence Gomez, Bernard Emié, Isabelle Emié, Peter Alfandary, Denis Hennequin, Denis Dupart and Sylvie Hennequin

The Balcon

The charcuterie bar with Chef Vincent Menager

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recent events : annual financial lunch

18 n o v e m b e r

Banks and the crisis: Angela Knight puts both into context Times of crisis are also times of change, and this is never more the case than during today’s economic stress, suggests Angela Knight, the CEO of the British Bankers’ Association, and guest of honour at the Annual Financial Lunch.

||| This year’s Annual Financial Lunch was held on on their key prerogative of servicing clients. 18 November against a background of a crisis in But another stakeholder of unquestioned the eurozone, and a heavily destabilised banking importance is the wider external community, and system. The selection of Angela Knight, the Chief he celebrated SocGen’s commitment to CSR in the Executive of the British Bankers’ Association, as the form of staff volunteering at schools and helping guest speaker could not have been more appropriate. with microfinance projects. She spoke with knowledge of the sharp end of the Mr Fisher then made way for the guest of honour, banking system. Angela Knight. Mrs Knight started by reminding us The event was also a celebration of the loyalty of that London was a large and important international sponsor Société Générale Corporate and Investment financial centre, whose prosperity was essential Banking, who has supported the lunch for 15 years. not merely to Europe but to the global system. Ian Fisher, Group Country Head for the UK, She said the series of recent events were addressed the lunch. This was held for the very disturbing, and to a large extent first time at the amazing Corinthia Hotel unexpected in their gravity. But she said We need a and was attended by some 150 people, they could be regarded as an opportunity, collective including H.E Mr Bernard Émié, French as well as a shock. ‘Extraordinary events approach to ambassador to the UK. lead to extraordinary change’, she avert the risk. Mr Fisher said that partnership between There is a need observed. the UK and France was particularly critical She celebrated the UK’s strengths for collective at times of such stress, and he called that will endure any such change. These action. current events ‘truly seismic’. While he include its use of the English language, accepted that the financial system was its time zone and its stable regulatory and under great pressure, he disparaged critics political environments. ‘It is important to who called for its removal, saying the debate should remember our basic strengths.’ be focusing on amending the economic system, not The need for major changes in the UK regulatory replacing it, if we are to come through the crisis. system has been demonstrated by the crisis, she said, The key to survival was to harness people’s efforts as regulation had been lax. But she warned against to overcome the crisis. ‘We need a collective approach excessively strong measures that risked stifling to avert the risk. There is a need for collective enterprise. ‘We need to be careful not to make our action.’ He went on to point out a ‘crisis in trust in regulation too tight. This can happen as the pendulum the sovereign bond markets’ as the primary cause of swings from one end to the other.’ She said that the today’s upheaval. Banks need to focus more than ever major banks had implemented major changes in

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recent events : annual financial lunch

18 n o v e m b e r

terms of capital, risk and liquidity. She also said that they were using Basel Three rules for capital. ‘Now is the time to take a deep breath and give the changes time to make an impact on the banks. These changes need to feed through to the real economy.’ The banking system will encounter further changes, she warned, including the Vickers proposals for separating commercial and investment banking entities. The banking system ‘has agreed to pay more tax’, she conceded, as part of its restitution for the financial shock. But she warned against a tide of protectionism and nationalism now threatening to arise from some sectors of the eurozone under

particular pressure. The Chief Executive expressed her concerns about a possible introduction of an EU-wide Tobin tax. According to the BBA, such legislation could have a disproportionate impact on the UK as it is Europe’s biggest financial centre, and the hub of the world’s financial services. The City does business globally but pays its taxes in the UK, and Ms Knight insisted that ‘retaining our strong, vibrant, international finance hub here is good for jobs and our economy.’ She then took questions from the audience and Arnaud Vaissié, President of CCFGB, thanked Angela Knight for her ‘very informative speech’. I

From left: Bernard Emié, Angela Knight, Arnaud Vaissié and Ian Fisher

Angela Knight

Ian Fisher

The Annual Financial Lunch was well attended

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recent events : seminar

23 n o v e m b e r

Privacy and Data protectionit’s nothing personal! Data protection is a very topical and controversial subject. The recent seminar hosted by McGuireWoods clarified many of the more technical areas and provided some helpful food for thought for Chamber members and others

||| The Chamber held a very well attended seminar on 23 November 2011, entitled ‘Privacy: it’s nothing personal – A data protection update on surveillance, monitoring, e-discovery and security issues’. The meeting was sponsored by McGuireWoods, who also hosted it. The meeting was addressed by Martin Borrett, Director of the IBM Institute of Advanced Security in Europe and Chief Security Architect Europe; Iain Bourne, Group Manager of the Information Commissioner’s Office; Bénédicte Raevens, Partner; Philipp Rees, Partner; Paul Van den Bulck, Partner, and Andrea Ward, Senior Associate, all of McGuireWoods. The meeting was moderated and chaired by Nick Kochan, Editor-inChief of INFO magazine. The seminar was opened by Martin Borrett, who put some of the issues concerning data protection into the context of new technologies, in particular cloud computing. He then introduced Iain Bourne who outlined the role of the Information Commissioner’s Office, explaining how it enforces and regulates the Data Protection Act, the Freedom of Information Act, Environmental Information regulations, and Privacy and Electronic Communications Regulations. He proceeded to give his interpretation of the new EU Data Protection Directive and regulations on the horizon. He asked some important questions, such as ‘Do we know what “personal data” is anymore? What does it mean to “identify” someone? Do overseas transfer rules work? Should individuals’ rights be updated? What types of data are “sensitive”? What role should “notification” play? How far is harmonisation a factor?’ Andrea Ward then outlined some key concerns, such as the blurring of lines between work and private lives. She alluded to the ACAS Report entitled

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The seminar proved very popular

“Workplaces and Social Networking – the Implications for Employment Relations”, and she asked some key questions, such as ‘How extensive is the use of social media in UK workplaces? What challenges and opportunities do social media present for management of employment relations? And what does good practice in this area look like?’ She was followed by Bénédicte Raevens, who discussed the variation in international standards for data sharing. She explained the Safe Harbour concept. She said that data processing prior to international transfer was lawful, provided that the purpose of the international transfer is compatible with the purpose of the initial collection and further processing. Paul van der Bulck outlined the two stages in the “ediscovery” process where personal data held in Europe may be affected. He discussed litigation holding and freezing with a view to pre-emptive document preservation and the pre-trial discovery requests in US civil litigation. He noted the conflict between the disclosure obligation under US litigation and the EU rules concerning personal data protection. I

r e c e n t e v e n t s : c h r i s t m a s c o c k ta i l

6 december

Santa was in evidence at Chamber’s Christmas cocktail The Chamber held its very first Christmas cocktail sponsored by easyJet, in the luxurious portals of the St Pancras Renaissance Hotel. A remarkable prize draw added to the festive atmosphere of the event ||| The Chamber held its first ever Christmas cocktail in the luxurious portals of the St Pancras Renaissance Hotel on Tuesday 6 December. The atmosphere was festive, as Peter Alfandary, the Chamber’s Deputy President, opened proceedings, saying that this would be an annual event and the first of many Christmas cocktails for the Chamber. He then introduced Paul Simmons, UK Country Director of easyJet, the sponsor of the event. Mr Simmons thanked the Chamber for the support it had given his company, said that easyJet was a recent member, but looked forward to participating in many future events. Following these addresses, the event became something of a topical Olympics fest, with addresses from Sylvie Matthews, the French National Olympic Committee (CNOSF) Events Manager, who introduced Club France, the French house on Old Billingsgate

during the London Games. She in turn introduced Olivier Girault, Captain of the French Handball team who won a gold medal at the Beijing Olympics. He spoke about the gold medal as the triumph of his career and a fitting place to conclude a wonderful sporting life. The evening was concluded with a remarkable tombola. Participating companies had presented 52 prizes, so just under half of the guests in attendance were winners. Mr Alfandary thanked the following companies who had presented prizes. They are: BMM Connection, Caudalie, Cinémoi, Concorde Hotels & Resorts, Dans le Noir?, Domaine de Lorgeril, The East India Company, easyJet, Eurostar, Fromagerie Beillevaire, International Breweries & Beers, Jumeirah Carlton Tower Hotel, Le Manoir aux Quat’Saisons, Meliã White House, North Road, St Pancras Renaissance Hotel, and Willie’s World-Class Cacao. I

17th & 18th November: co-organised by

“Tastes of Northern France” - some food for thought for UK companies ||| The two-day networking event, co-organised by the Nord Pas de Calais Chamber (CCI) and the French Chamber of Commerce in Great Britain (CCFGB) on 17 and 18 November, took place in Northern France – one of the main food producing areas of the country. On the first day, the British companies: Selfridges, Ocado, Beer Direct and JJ Food Service had an opportunity to explore its richness during the guided tour of selected local food and drink companies including Pâtisserie des Flandres, priding itself in traditional waffles, Terre des Lys, the creator of frozen appetizers, Fishcut Leroy, the second largest producer of salmon and

trout in the world, Perle du Nord, the high-quality chicory brand, and Brasserie St Germain, an expert in speciality beers. On the second day, French companies from the region attended a presentation by Ocado’s buyer in which she outlined the company’s purchasing strategy, and by Anne-Laure Albergel, Project Manager at the Chamber, who did an exposé on food retailing in the UK. This was followed by B2B meetings between the British buyers and the French potential suppliers. The event was very successful as each company managed to meet a dozen of potential suppliers. I

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sme

entrepreneurs club

F. Larquetoux: club’s new co-Chair, with a vision for entrepreneurship The SME and Entrepreneurs Club (see below) offers a lively forum for discussion about the realities of business. Further dynamism will be injected into the club with the appointment as co-chairman of Frederic Larquetoux

||| Frédéric Larquetoux recently joined Nathalie ZimmermannNénon as the new Co-Chair of the Chamber’s SME & Entrepreneurs Club. It is a role for which he has a clear vision. Whilst acknowledging that since founding the Club both Cédric Filet, former CoChair, and Nathalie have done ‘a phenomenal job’ of supporting its members, Frédéric puts the emphasis on entrepreneurial values rather than organisation Frédéric Larquetoux size, on drive for growth rather than on the cementing of existing roles or structures, and on the relentless pursuit of a vision in spite of challenging and uncertain economic conditions. He brings to his task of developing the Club’s activities over 12 years of professional practice experience in the UK, primarily gained from providing assurance and financial reporting services to many high-growth public and private entrepreneurial companies. This and the last six years of working at Ernst & Young, one of the “big four” firms of accountants, has given him much insight into the behaviours and structures that can either promote or stifle entrepreneurship and growth. The challenge facing successful entrepreneurs, says Frédéric, is mastering the art of retaining entrepreneurial spirit and values while implementing a structure and the processes necessary to support growth in the organisation, adding that French entrepreneurs must also seize opportunities from the many cultural obstacles and challenges that doing business in the UK entails. Frédéric strongly believes that the route to developing a successful business involves clearly articulating and communicating the founders’ vision and values to employees. As entrepreneurs drive their

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business and lead their teams from the front, Frédéric sees here a key role for the Chamber’s SME & Entrepreneurs Club, being to enable each one of them to connect with their peers and share experience and best practice, benchmark their performance and build networks. In terms of the year ahead, Frédéric aims to influence the Club’s debates around the key business challenges that ambitious entrepreneurial companies looking to grow should address. He names customer recruitment and management, managing finance and risk, operational effectiveness, transactions and alliances, and recruitment and retention of key staff. Frédéric holds a Masters degree in Accounting, Finance and Management, and he is qualified both in France as ‘Expert-Comptable’ and in the UK as a chartered accountant. I NK

||| The SME & Entrepreneurs Club welcomes all small and medium-sized member companies who wish to develop their business and share best practice about topical issues facing companies in this challenging economic environment. The group meets regularly at the Chamber from 8.30 to 10 am and invites key speakers from various professional backgrounds to give advice and present case studies. Join us for the next session on the theme “Innovation: a key driver for business development”, 7 February, 8.30 am. For more info, please contact Karim Mijal: 0207 092 6638.

sme

entrepreneurs club

7 n ov e m b e r

Finding funds for the SMEs Every small business needs new funding at some point. But where do you look, how do you select your “angel”? Here Nathan Boublil of EP Capital answers some key questions

||| What should an entrepreneur be ready to give away in exchange for capital, network and experience provided by a private equity platform?

Equity investors will by definition invest in exchange for an equity shareholding percentage in the company. In case of bankruptcy, equity investors will typically lose everything, but will participate financially in the success of the company if it is later sold, listed on the public markets (IPO) or if it distributes dividends to shareholders. Therefore, it is important that entrepreneurs have an informed view on the valuation of their company when they approach business angels/ institutional investors. For early-stage businesses, traditional corporate finance valuation techniques (such as the well known DCF) cannot apply for two reasons: i) the company is generally not profitable/cash flow positive and ii) financial forecasts are hard to make. Therefore, the most valid technique is to see what valuation level other companies, in a similar sector, region, stage of development and potential are raising at (often called “transaction comps”). As a business angel syndicate, we personally invest in companies which have a valuation comprised between £1m and £10m, for an equity stake between five percent and 40 percent. In exchange for an equity percent, entrepreneurs will receive cash funding and often other “intangible” services such as network and advice (in an informal or a formal way through a board seat for instance). Some investors will prefer to stay passive but many business angels are ready to offer some form of help and coaching to the entrepreneurs they finance. The beauty of equity financing is that the entrepreneurs’ and financiers’ interests are perfectly aligned. It is worth reminding that the UK has put in place an excellent environment for entrepreneurs and investors, with the EIS (Enterprise Investment Scheme), which was further strengthened in March 2011. In November 2011, the UK has also introduced the SEIS scheme (Seed EIS), an even more powerful scheme, targeted at very early-stage SMEs. Therefore, the UK government is determined to make it as easy

as possible for UK entrepreneurs to look for equity financing - this is in fact a key feature of its “proenterprise strategy to recovery”. How could you help services-based companies? Do you exclusively focus on companies that have an added-value in terms of technologies and innovation?

Not at all, the services industry is one of our sectors of focus, just like many business angels and institutional investors. The UK prides itself on its services industry so it would be hard to ignore it! That being said, from an investor’s perspective, there is a distinction that needs to be made between the so-called “lifestyle businesses” and other businesses. The most important parameter for equity investors is not really the industry but the perceived ability to “scale” (which is why investors’ bubble has emerged around online businesses). Should you hire a professional advisor to assist you during such a process?

It very much depends on how comfortable founders are with capital raising processes and what their level of contacts in the investor community is. Some founders are already well-connected with business angels and institutional investors and therefore manage to execute their capital raising without any outside help (except legal) and with minimum disruption to their day-today business. Others can really benefit from a financial advisor or a fundraiser, even for the first rounds of funding. For more mature businesses, with multimillion revenue, the vast majority of entrepreneurs hire advisors/fundraisers as they have “too much on their plate” running the actual business. When hiring advisors, it is important to take the time to select them well and to ensure that they are well incentivised, with a low percentage “retainer fee” and high percentage “success fee” component. It is also important that entrepreneurs do not delegate everything to advisors/fundraisers. The UK also has many business angel networks which can greatly assist in talking to a lot of business angels in a time efficient manner. I

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csr forum

18 n o v e m b e r

A new direction in CSR: responsibility local? Banks’ response to the London riots was a litmus test for the seriousness taken by companies to their CSR policies. Some passed with flying colours, says Samuel Hilton

||| Corporate social responsibility needs to be embedded into a company’s way of doing business. That will enhance its standing in the community and with its stakeholders. That was the lesson drawn from the address to the Chamber of David Laing, HSBC’s Regional Commercial Director for Croydon, at the CSR Forum, chaired by Christophe Gasc of IBM, held on 18 November. David Laing talked about the swift, decisive and considerate response from the heads of HSBC during recent UK riots. Jacques-Emmanuel Blanchet, HSBC’s UK head of commercial banking, sent an email on the second day of the riots, saying that banks should act sympathetically and stretch normal lending procedures. The next day another email was sent, proposing some pro-active steps such as offering three-month interestfree loans, six-month overdrafts and fee waivers. In addition to this help, HSBC issued a statement to the media offering help to those affected. Events were held at banks and senior officers of the bank visited branches. HSBC banks cashed cheques that would normally have been rejected, loaned more than usual to personal customers, and continued to act sympathetically. He said customers appreciated the caring attitude rather than the financial help. All this was an expression of the HSBC’s CSR policy and not just done to improve reputation. David Laing’s address was followed by one from Khin Tye from Business in the Community. She talked about the importance of CSR, pointing out that other banks took similar actions and that companies helped in the post-riot clean up. Khin explained that companies benefit from being ethical. The Co-op, for example, found that 80 percent of its customers were attracted by its ethical practices. Companies in the FTSE 500 with CSR policies have outperformed their peers 80 percent of the time over the last 3 years.

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She also noted that companies have been donating less money but volunteering more. Volunteering builds positive relationships with communities and benefits the employees and their companies as it can develop employees’ skills and the company’s profile. The UK has high levels of company volunteering. Countries with less welfare generally have more volunteering. Khin talked about some of the schemes that encourage and support corporate philanthropy, including the Business Connectors programme that connects business and charities, the Committee Encouraging Corporate Philanthropy, Give and Gain Day, and the Engage Key Cities programme. The general consensus around the table was that the recession and recent civil unrests have been a catalyst to rethink CSR, where money is not the only commodity. Volunteering through time and skills sharing by the staff are valuable for the local community and still highly beneficial for the company’s financial return. I Delahaye_Ad_82_62

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f o rt h co m i n g e v e n t s

1st February 2012

CEO Breakfast - “We are rubbish” 08.00 – 10.00 At the Andaz Hotel Guest Speaker: Jean-Dominique Mallet CEO of Veolia Environmental Services UK £40 + VAT per person Places limited About jean-dominique mallet Jean-Dominique was appointed to the position of CEO of Veolia Environmental Services UK in June 2007, which is in addition to his responsibilities as Executive Vice-President for Northern Europe and Australia. He is also a member of the company’s Executive Committee, and retains responsibility for the technical and greenhouse gas departments of the company. Jean-Dominique joined the Veolia Environment Group in 1990. He is highly experienced in the waste management sector having moved to the waste management arm of Veolia Environment in 1994.

About Veolia Veolia Environment, the world leader in environmental services, is firmly established in the UK and offers an innovative range of integrated services to local authorities, commercial and industrial sectors. The group comprises Veolia Environmental Services, Dalkia, Veolia Water UK, Veolia Water Solutions & Technologies and Veolia Transport UK, and is renowned for its expertise and professionalism. ‘We are rubbish’, they say, ‘and rubbish is not rubbish – in fact it is a valuable and precious resource.’ The Veolia Environment group employs around 17,000 people in the UK.

For more information please contact Cécilia Gonzalez on +44 (0) 2070926643 or at cgonzalez@ccfgb.co.uk

21st February 2012

Quarterly Economic Update 08.30 – 10.30 At the French Chamber of Commerce Chaired by Philippe Chalon, Director of External Affairs at International SOS & Secretary General of the Cercle d’Outre-Manche Guest Speaker: Mark BERRISFORD-SMITH, Senior Economist at HSBC Bank PLC HBEU Open to all members About Mark Berrisford-Smith Having studied Economics at Sussex and London Universities, Mark is now Senior Economist in the Business Economics Unit at HSBC Bank plc. He is responsible for advising the Bank in the UK and its

business customers on developments in the British and global economies, within which remit he takes a particular interest in monitoring the performance of European countries.

For more details, please contact Karim Mijal on kmijal@ccfgb.co.uk or on 020 7092 6638

29th March 2012

Seminar: “London Property - The New Gold Rush?” 08.00 – 10.00 At Knight Frank’s offices £50 per person + VAT ||| This seminar will provide an overview of the London residential property market as a field of investment, aim to predict future trends for 2012 , summarise the legal process in purchasing a property and the resulting tax consequences.

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ÂŠ photo credits: VINCI and subsidiaries photo libraries, BAA photo library.

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