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B U S I N E S S
NOVEMBER / DECEMBER 2016
DISRUPT OR BE
IN THIS ISSUE: Interview: EDF Energy CEO Vincent de Rivaz CBE on Hinkley Point C approval Five minutes with Stéphane Le Guével, Director General, PSA Group UK Interviews: Axelle Lemaire, French Minister of State for Innovation and Digital Affairs and The Rt Hon Matthew Hancock, British Minister of State for Digital and Culture Comment: Economist Vicky Pryce on Brexit’s business challenges
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EDITORIAL
Estelle Brachlianoff President, French Chamber of Great Britain Senior Executive Vice President of Veolia UK & Ireland
D
isruption is often confused with innovation, but these are two very different concepts. In a business context, the latter means evolving your products and services to continue to meet your customers' needs, while disruption means fundamentally changing the way that your industry works, introducing new products, a new customer base, and thus creating new markets. The key theme of this issue of INFO is ‘Disrupt or Be Disrupted’, which is also the theme of this year’s
Franco-British Conference, on 21 November, at One Great George Street in London. Businesses face unprecedented challenges from fast-growing companies that are able to leverage technology to disrupt existing business models. Incumbents face a choice: they must embrace disruption themselves and lead the charge, or face being disrupted themselves – with potentially negative consequences. In this issue’s Focus (starting on page 25), we offer you insight from some of the top disruptive minds in business today, such as Vivendi CEO Arnaud de Puyfontaine and many others. We are also delighted to feature interviews with the French Minister of State for Innovation and Digital Affairs, Axelle Lemaire, and the UK Minister of State for Digital and Culture, Matthew Hancock, who are both responsible for tackling digital disruption at the governmental level. One of the biggest disruptions that both government and businesses face today is Brexit which, throughout the autumn, has remained front of mind for French Chamber members. Through our Forums and Clubs, we have dissected the impact of Brexit across a range of areas: HR, legal, finance and more. You can read our reports on these from page 64 onwards. As this is one of the biggest issues that businesses in the UK will face in a generation, we will continue to keep Brexit on the agenda as we move into 2017 and beyond. From the creation of a dedicated Brexit Forum early next year to ongoing regular updates and advice, the Chamber aspires to be your go-to-place for information, benchmarking and lobbying. For now, I hope that you enjoy this issue of INFO and that it gives you valuable food for thought. I
info
- november / december 2016 - 5
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Interview: EDF Energy CEO Vincent de Rivaz Five minutes with... Stéphane Le Guével, Director General, PSA Group UK News and analysis Brexit: Analysis and look ahead Start-up story Teads: Transforming the way that publishers and advertisers use video online Start-up and SME news Education news Reports and research
CONTENTS
34
43
DISRUPT
Exhibitions and events Book reviews Travelogue Weekend in Edinburgh Eat, drink, stay Cheese and wine
AT THE CHAMBE R
59 Introduction by Florence Gomez 60 French Chamber news 61 New members
Editor: Jason Hesse Graphic designer: Katherine Millet Editorial assistant: Mwengesyali Syauswa Sales Manager: Suzanne Lycett
FORUMS & CLUBS FOCUS | DI SRUP T OR BE DI SRUP TE D
25 Introduction by Jason Hesse 26 Infographic: Disruption in numbers 28 Interview Axelle Lemaire, French Minister of State for Innovation and Digital Affairs 29 Interview Matthew Hancock, British Minister of State for Digital and Culture 30 Reacting to disruption Vivendi, Schneider Electric and AXA 32 Disruption: Fad or threat? ESCP Europe 33 The opportunity to innovate HSBC Bank 34 Leading the field Dassault Systèmes 35 Scaling for disruptive success what3words 36 Investing in disruption: risk or opportunity? AngelsCube 37 Seven models to build a disruptor EDHEC 39 Full throttle Microsoft Startup Growth Partners 40 Technology provides the power to disrupt The Disruptive Group and Aviva 43 Disrupting regulation Sherrards Solicitors 44 Change is the only constant PwC Strategy& 46 When the disruptors are disrupted Pinsent Masons
64 65 66 67 68 68
Economic Update Brexit: What is next? Finance Forum Brexit negotiations need transparency Legal Forum EU law: Brexit to pose huge challenges Climate Change Forum What is the science behind climate change? HR Forum Employers must start Brexit planning now Forthcoming Forums & Clubs
Contributors: Pierre-Olivier Bligny, Yann Bonduelle, Estelle Brachlianoff, David Cather, Joaee Chew, Eric Charriaux, Christophe Chazot, Alexandre Covello, Ian Ellis, Geraldine Fabre, Karin Kollenz-Quétard, Thibault Lavergne, Diane Mullenex, Huy Nguyen Trieu, Vicky Pryce, Chris Sheldrick, Sudeshna Sen, Davide Sola, John Stokoe, Annabelle Richard
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CHAMBER EVENTS
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Event highlights Dîner des Chefs at Belmond Le Manoir aux Quat'Saisons; Rendez-vous chez Le Vieux Comptoir; Cocktail reception at Maison Assouline; Rendez-vous chez The Rembrandt Trade delegation to Liverpool Breakfast with Estelle Brachlianoff Ryder Cup 2018: Coming to France Luxury Dinner 2016 Forthcoming Events
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INFO is published by: French Chamber of Great Britain Lincoln House, 300 High Holborn London WC1V 7JH Tel: (020) 7092 6600 Fax: (020) 7092 6601 www.frenchchamber.co.uk Managing Director: Florence Gomez Head of Corporate Communications: Marielle Fraize
info
- november / december 2016 - 7
The man behind Britain’s nuclear revival Vincent de Rivaz CBE, CEO, EDF Energy Vincent de Rivaz speaking at a Hinkley Point C rally event in October 2016
F
our British Prime Ministers and nine UK Energy Secretaries.
‘Building credibility was one of my objectives, so being
Three French Presidents and four French Prime Ministers.
present in the UK over a longer period has allowed me to build
Four Chairmen of EDF. The rolodex of leaders that Vincent
up my credibility as a leader,’ he explains. ‘Too many companies
de Rivaz has had to work with over the last decade, to secure
see their CEOs change every three years – this means they
approval of the £18bn Hinkley Point C project, is impressive.
come with words, whereas we’ve been able to deliver deeds.’
This is not the story of Hinkley Point C, but the story of
This credibility, he believes, has been the key to getting
how the 63-year-old Savoyard CEO of EDF Energy established
Britain’s first new nuclear power plant in a generation approved.
himself as a champion of nuclear power in Britain.
Working with successive governments over the last decade, he
BEGINNINGS
has worked hard to establish a partnership. For example, Rivaz shares that he first started a working
When Vincent de Rivaz became CEO of EDF Energy in 2003,
relationship with the current Secretary of State for Business,
nuclear was not on the table. The company entered the UK
Energy and Industrial Strategy, Greg Clark, back in 2008, when
through the acquisition of several energy distribution businesses
he was Shadow Energy Minister. ‘This summer, the fact that I
and two coal-fired power stations. ‘The UK Government
already had a relationship with him for nearly a decade helped
published an energy whitepaper in 2003, which was the nail in
me immediately when he was appointed,’ he says. ‘Since 2008,
the coffin for new nuclear,’ he explains. ‘Renewables and energy
he has seen EDF Energy's credibility strengthened year after
efficiency were seen as the future at the time.’
year, supported by the strong performance of the existing
A combination of macroeconomic factors changed this over
nuclear fleet since the acquisition.’
subsequent years. First, there was the ‘Geopolitical’ factor, as
These relationships – between Vincent de Rivaz and
Rivaz calls it: in 2005, Russia cut gas supplies to Ukraine over
ministers, between EDF Energy and the UK Government – have
a dispute, which led to worries of energy shortages across
developed into a partnership over time, and together they
Western Europe and, crucially, at the end of the pipes in the UK.
developed a common goal to make Hinkley Point possible. This,
Next, the ‘Stern' factor: a 700-page report on climate
says Rivaz, is how to do business.
change published by climate expert and economist Nicholas
One example is the negotiation of the Contract for
Stern in 2006, which made the case for a de-carbonised
Difference and its ‘strike price’, critical to the Hinkley Point C
economy. And finally, what Rivaz terms the ‘Bills’ factor: by 2008,
project. This supporting mechanism provides revenue certainty
the price of electricity was as high as £80 per megawatt-hour
through a fixed price agreed with the Government – it is a two-
due to volatility in the gas markets. This combination created
way contract, where the energy generator receives or pays back
a favourable context to review the case for nuclear power. By
the difference between the ‘strike price’ and the market price.
2006, Tony Blair, then Prime Minister, announced that nuclear would come back ‘with a vengeance’. Throughout this time, Rivaz had started working on Britain’s nuclear revival: he sensed the opportunity. When British Energy’s key assets – the UK’s eight nuclear power plants – came up for sale in 2008, EDF acquired them for £12.4bn. ‘This gave
‘Of course, our starting points were not the same,’ he admits. ‘But it was a mature, respectful and honest negotiation. None of the parties applied undue pressure on the negotiation through misuse of the media or lobbying tactics.’
HURDLES
us access to the people, skills and relationships we needed to
The negotiations with the UK Government were far from
enter the UK nuclear market properly,’ says Rivaz. ‘It gave us
being the last hurdle to getting the project over the line,
the credentials to be a responsible nuclear operator in Britain.’
however. Rivaz rattles off the long list of milestones in the
‘CREDERE’
Hinkley Point C story so far: there was the approval from the Office for Nuclear Regulation, obtaining the planning consent,
The theme of credibility is very important to Vincent de Rivaz.
approval of the contract for difference, approval from the
He explains the Latin origins of the word: credere, which means
European Union, the contract with EDF's Chinese partner CGN,
‘to believe’, ‘to place one’s heart’, and pairs it with consistency,
gaining support from the unions, getting sign off from the EDF
where a business can be trusted and relied upon.
board, and, finally, re-approval by Theresa May's government.
8 - info - november / december 2016
P R O F I L E V I N C E N T D E R I VA Z
Too many companies see their CEOs change every three years - this means they come with words, whereas we've been able to deliver deeds ALIGNING PLANETS
‘It has been a formidable battle – but in a good sense. We’ve been through many hurdles, but each time, the project cleared
At the end of the day, Rivaz says that his job has been to
each and every one. This is a project that has passed all of the
align ‘planets’: London, Paris, Brussels, Beijing. ‘Sometimes two
tests... once, twice, three times, four times,’ he explains.
of these planets were perfectly aligned, but the third or fourth
‘It has been examined from all of the possible angles, so it
were not. Then they would move around again,’ he explains. ‘I’ve
isn’t by chance that we’ve overcome each hurdle: it means the
had the privilege to be at the centre of these planets to align
project is right.’
them and provide the skills required to enable the alignment.’ Speaking to Rivaz, it is clear that he excels in the skills of
THE MAY GOVERNMENT
patience, diplomacy, project management and leadership.
Vincent de Rivaz says that he was not shaken by Theresa
Rivaz is adamant, however, that his role was simply that of
May’s decision to re-examine the project when she became
a leader – he says that the real credit should go to his team.
Prime Minister this summer. ‘To be honest, I understood
‘This was not an individual adventure – it was a collective
the rationale. The new government had to take ownership
adventure. I have such a huge debt to everyone who has
of the decision,’ he explains. ‘It was much better that the
worked on this for years.’
new government took a few extra weeks to conduct another
But, he warns, this is just the beginning: ‘The success of
thorough review and come to its own conclusion. After all, it’s a
Hinkley Point C will not be delivered by me, but by those who
decision that will matter for decades to come.’
are going to build it over the next ten years, and operate it over
He remained confident about the project and open to any
the following next 60.’
questions, and wrote a letter to EDF Energy staff to reassure
What effect might Brexit have on this? Rivaz remains
them, explaining why the new government’s review was
diplomatic: ‘I’m certainly going to engage with the Government
necessary. ‘It wasn’t the time to lose patience or show any
and Brussels. We are responsible for the largest construction
anxiety,’ he says. ‘I just had to think that, for this last hurdle, it
project in Europe, right here in Britain.
would lead to the same conclusion as the others.’
‘There are a lot of implications, so I hope to have the
Finally, at two minutes to midnight on 14 September, the
opportunity to give a constructive viewpoint on this issue.
day before Parliament went into recess, he got the call: Hinkley
Nuclear has a great future, and this project opens up
Point C would get the go-ahead.
opportunities beyond Britain. The world is watching us.’ I JH
HINKLEY POINT C TIMELINE 2003
Energy whitepaper declares that future energy
2013
Planning consent is obtained (March); UK
will be without nuclear
Government agrees contract with EDF (October)
2006
Tony Blair announces energy review where
2014
Preparatory construction works begin (May); EU
nuclear could be included
approves the contract (October)
2007
EDF Energy announces its new nuclear plans for
2015
EDF signs a deal with Chinese firm CGN, which
the UK
will provide one-third of the £18bn cost and
share in future projects at Sizewell and Bradwell
2016
EDF Board of Directors reviews EDF Group’s long-
term financial trajectory enabling the funding of
Hinkley Point C (April) and finally approves project
(July); UK government announces new review
2009
EDF Energy takes over British Energy and its 15
existing nuclear reactors
2010
Hinkley Point site gets declared eligible for
nuclear new build
2012
EPR nuclear technology gets approval from
(July) and finally approves project (September); all
Office for Nuclear Regulation
the contracts are signed (September)
info
- november / december 2016 - 9
Five minutes with...
Stéphane Le Guével Director General, PSA GROUP UK
What does your day-to-day job involve? I've been in charge of the three PSA Group brands – Peugeot, Citroën and DS – in the UK since January 2015. From the
good image in the UK and is seen as innovative and different. The Peugeot brand is high-end generalist, and customers recognise it as having uncompromising quality, sharp design
promotion of our brands through to overseeing car sales
and an instinctive driving experience that is aimed at a more
and part sales targets, my role is to constantly develop
high-end client. This is one of the benefits of working for a
PSA Group in the UK both in terms of market share and
French brand. France has a long history of luxury, and this
customer satisfaction.
helps to differentiate us from German car brands, which tend
There is no typical day for me, as no one day looks like
to focus more on technology as their USP. So we are able
another. However, most of my meetings are about defining the
to bring something around the idea of French luxury, which
company’s strategy, looking at our brand positioning, strategic
British customers are hungry for. This is where our DS brand
objectives and our dealer network transformation plans.
sits, at the top end of the market, attracting people who are
Managing human resources is also an important part of the
interested in a premium car that reflects pure French luxury.
role, to make sure that the right people are in the right place.
The DS customers are acutely aware of how luxury products
I have three brand directors who report to me (one for each
are made, so our DS cars include the best-quality handmade
of the core brands) plus a fourth operational director, who is
leather and premium finishes.
responsible for spare part sales. On top of that, I also work closely with our support functions, such as B2B, HR, finance,
Following the EU Referendum, PSA Group re-evaluated its
network development, supply, PR and more.
prices upward in the UK. How do you expect Brexit will affect the company in the longer term?
Where does the UK market sit in PSA Group?
As a whole, we’re on track to sell more than three million cars
The UK is our second-largest market in Europe, which makes
this year, and since the EU Referendum result in June, we
it hugely important to the group. Additionally, it is also
haven't witnessed a significant decrease in demand for our
the second-largest market across the whole world for our
cars. Yes, the retail market is showing signs of a slow down,
premium brand DS. The UK business does not stand alone,
but the automotive sector itself remains strong.
however – we work closely with the Europe Business Unit of
Next year, we do expect a small dip in the market, but
PSA Group, and this is where I report my commercial targets.
this should be limited to 5 to 8 per cent. The UK remains and
These are composed of three key measures: car sales, part
will remain as a very important, key market for PSA Group
sales and customer satisfaction.
and there is no reason why we would consider the UK any differently because of Brexit. We will continue to launch our
What does a ‘typical’ customer look like?
products in the UK, and our ambitions to grow UK market
Generally, in a market such as the UK, people have a very
share haven’t changed. At the end of this year, we expect PSA
simple way of considering brands, depending on their origins.
Group’s market share to be 8.5 per cent in the UK, and next
Each country has its own clichés, whether it’s a German brand,
year, I expect it to grow to 9 per cent. Further, my expectation
Korean brand, Japanese brand or French brand. Therefore an
is to reach between 10 and 12 per cent of UK car sales.
important part of my job is to ensure that people understand what each of the PSA Group brands stands for. Each one targets a different segment of the population.
When it comes down to price, yes, we have increased our prices, but so have our competitors. Our intention is to remain at the heart of the competitive environment, and we
Citroën targets the mainstream, general population with the
are monitoring our price position as much and as precisely
idea to ‘be different and feel good’. This brand already has a
as we can. The reality is that we need to be agile and react
10 - info - november / december 2016
FIVE MINUTES WITH... S TEPHANE LE GUE VEL
as quickly as we can to the market, and a key element of this
account for 90 per cent of sales, which is huge. The UK is a
is to position ourselves against competitors to find the right
leader in this because the British consumer is miles ahead of
balance between price and market share. We will not chase
other Europeans in terms of their ownership mentality. You
market share at any cost.
see it not just in cars, but with other products too, such as mobile phones, online music and video streaming, etc.
What is PSA Group doing to differentiate itself?
As a result, the trend is pushing car companies to do
Two elements come to mind: our cars and our service. We’re
more to protect their vehicles' residual values – i.e. how much
already the leader in terms of CO2 emissions in Europe. Our
a car is worth at the end. By having a high resale value, the
PureTech petrol engine is the best and our HDi diesel engine
monthly rental is able to be better positioned, giving brands
is also the market leader.
a competitive advantage. It’s a model that is good for us,
Hybrid and electric cars will play a big role in our future,
because we don't just want to grow our market share, but also
too. By 2021, we plan to have seven plug-in hybrid vehicles
create customer loyalty. With this using-rather-than-owning
and four new fully-electric vehicles. Autonomous vehicles are
model, provided that you deliver the right level of service and
also very exciting – they are the future of automobiles and
people are happy with their cars; your brand can retain its
will be a part of our future, alongside electric vehicles and
customers over the longer term.
alternative energy.
When it comes down to price, yes, we have increased our prices, but so have our competitors But innovation is also about the services that we provide.
What are your priorities for 2017?
We recently launched a new brand, Distrigo, which focuses
My first priority is to reach 9 per cent market share across
on the parts distribution for all brands – not just PSA Group
the group. Then, I would like to carry on differentiating our
vehicles, but all makes – and we're building up that network
three brands among the British public, so that each brand
further. We've also taken some big steps in telematics and
is understood and perceived clearly – we need people to
mobility, through our partnership with Masternaut and the
understand what Peugeot, Citroën and DS stand for. Third,
creation of our mobility brand, Free2Move. So we're not only
I would like to continue to improve the dealer network by
investing in car innovation, but also in the services we provide.
increasing efficiency and customer satisfaction. Finally, as a
These are the two key pillars of PSA Group.
consequence of the brand building we are undertaking and through our commercial policy, I want to make sure that we
The auto industry was rocked, last year, by the emissions
continue to protect our residual values and therefore create
scandal. How has this affected you?
long-term value for our brands.
We weren’t specifically affected by it, but what I can say is that the whole market is now shifting from diesel to petrol engines,
How does PSA Group benefit from being a member of the
including us. This shift has been especially noticeable in the ‘A’
French Chamber?
vehicle segment, which is composed of smaller cars, such as
Being a Patron Member is a fantastic opportunity for PSA
the Citroën C1 or Peugeot 108, where customers are looking
Group to share and learn from the experiences of other
to economise on running costs.
French companies. Even if we come from different business
Saying that, the image of petrol has changed a lot in recent
sectors or industries, or offer different kinds of services, it's still
years, and our petrol engines are already very economical
important to share our experiences of the British market, to
and CO2 friendly, as well as being pleasant to drive. The
ensure we all succeed as best as we can. I Interview by JH
combination of these three factors means that driving with a petrol engine is a much better experience than it used to be. There is a shift in the UK towards no longer owning your own vehicle. How is this impacting PSA Group? The British market is strongly geared towards renting rather than buying your car, and this is a growing trend in Europe too.
PSA GROUP FACTS AND FIGURES • Global employees: 184,000 • UK employees: 2,400
It’s all about usage rather than ownership. Rather than buying
• Global sales: nearly three million vehicles in 2015
your car outright, you pay a monthly fee for it, and often this
• UK sales: 257,383 vehicles (14% of EU sales)
can include insurance and maintenance as well. It’s a worryfree, all-inclusive way of buying a car. We've seen this market shift across all of the markets in
• Market position: PSA Group is the second- largest vehicle manufacturer in Europe
which we are present – indeed, in some segments, these deals
info
- november / december 2016 - 11
Proud to be the UK’s largest producer of low carbon electricity Feel better energy To find out more about our low carbon nuclear generation visit www.edfenergy.com/energyfuture. Character under licence from BeatBots LLC. EDF Energy plc, registered number 2366852, registered office: 40 Grosvenor Place, London, SW1X 7EN. Incorporated in England & Wales.
NEWS
A ND
A N A LY S I S
Green light for EDF Energy’s Hinkley Point C After 10 years of negotiations, EDF Energy has signed an £18bn contract with the UK Government, relaunching new nuclear construction in the UK and Europe EDF Energy can now begin the construction of two ‘EPR’
across the world, and our teams are determined to make it
reactors in Somerset which, once built, will provide 7 per
a success,’ said Bernard Fontana, CEO Of AREVA NP. ‘‘This is
cent of the UK’s electricity needs. EPR reactors use the latest
further proof of the credibility of the French offering on the
technology in nuclear energy.
international market.’
Approval of the nuclear project was put on hold this summer, after the new UK Prime Minister, Theresa May,
Challenges
announced that she wanted additional time to scrutinise it.
The approval of Hinkley Point C is good news for French and
Finally, in September, the government gave its assent, and
British industry, but at the heart of its success will be its
the contracts were signed on 29 September by Business
ability to be delivered on time and on budget.
Secretary Greg Clark, EDF Group Chairman and CEO Jean
Currently there are four EPR units being built across the
Bernard-Levy and CGN Chairman He Yu, whose company is a
world – one in France, another in Finland and two in China.
key partner in financing and delivering the project.
All of these are facing costly construction delays. EDF itself
Receiving the go-ahead for Hinkley Point C is not just
has acknowledged difficulties in building the EPR design, but a new model, which will be easier and cheaper to build, will
Britain needs to upgrade its supplies of energy, and we have always been clear that nuclear power stations like Hinkley play an important part in ensuring our future lowcarbon energy security –Greg Clark, UK Business Secretary
ensure that Hinkley Point C will be ready by the expected
good news for EDF Energy; it benefits a much wider supply
Read INFO’s interview with EDF Energy CEO Vincent de Rivaz on page 8.
date of 2025, the company assures.l ‘The construction of Hinkley Point C marks a whole new phase for EDF Energy, as it does for the British nuclear industry and for the regional economy of the South West,’ said EDF Energy CEO Vincent de Rivaz, who led the negotiations with the UK Government. ‘This will kickstart Britain’s nuclear revival.’ I
chain, including companies in both France and the UK. EDF expects that 64 per cent of the project’s value will be spent in the UK. AREVA, the nuclear energy firm, has already been awarded contracts worth €5bn to deliver key elements for the reactors, including the uranium and other materials needed for the fuel fabrication. And GE’s Steam Power Systems has been awarded a $1.9bn contract to supply two conventional power islands, including steam turbines, generators and other critical equipment. ‘Hinkley Point C will benefit from experience gained from the four EPR reactors currently under construction
Hinkley Point C in numbers
7%: of the UK’s electrity will be produced by Hinkley Point 5.8m: Number of homes it will power £18bn: Estimated construction cost 25,000: Total number of jobs that will be created 1995: Last time the UK opened a new nuclear power station
info
- november / december 2016 - 13
Deloitte launches 5,000-person ‘Apple’ unit Deloitte has announced a partnership with Apple to ‘accelerate
transformation on iPhone and iPad’. Together, they are developing a new service offering called EnterpriseNext. The 5,000-adviser practice will focus on helping clients to better use Apple mobile devices in the workplace, with a specific focus on retail, field services, recruiting, R&D, inventory and back-office management. ‘We know that iOS is the best mobile platform for business because we’ve experienced the benefit ourselves, with over 100,000 iOS devices in use by Deloitte’s workforce, running 75 custom apps,’ said Punit Renjen, Deloitte’s Global CEO. While Deloitte’s proposition focuses on mobile devices, Apple has also been making inroads in the corporate desktop computer market. Apple has historically been perceived by business leaders as more of a ‘consumer’ product, with corporate PCs ruling the roost. But the tide is changing: research by market intelligence firm IDC shows that Mac sales to companies with 500 employees or larger grew to 1.2 million in 2015, up from around 515,000 units sold in 2010. I PCS (DESKTOP AND NOTEBOOK) BY OPERATING SYSTEM (IN MILLIONS OF UNITS)
2010 2011 2012 2013 2014 2015
WINDOWS
31.40 36.48 36.44 36.89 38.30 35.46
OTHERS
0.25 0.29 0.45 0.51 0.61 0.56
APPLE OS
0.51 0.75 0.71 0.85 0.94 1.16
Veolia £1bn project with Hertfordshire County Council Veolia’s £1bn, 30-year contract with Hertfordshire Council will see the construction of a new energy recovery facility that uses residual waste. Once built, the £270m facility will process 350,000 tonnes of ‘black bin’ waste per year to generate 33MW of electricity – this is enough to power 69,000 homes. ‘This solution will not only maximise landfill diversion, but it also represents a source of low-carbon energy,’ said Estelle Brachlianoff, Senior Executive Vice President Veolia UK and Ireland. The Rye House project, 20 miles north of London, is a significant investment by Veolia in the UK. It will create more than 300 jobs during construction and 40 permanent jobs once the facility is operational. Subject to planning permission, the construction work of the energy recovery facility will start in 2017, and will be operational in 2020. Veolia is the UK market leader in waste-fuelled power. The company already operates a 35MW plant in south-east London which, using 420,000 tonnes of waste every year, produces enough power for 48,000 homes. In the long term, Veolia expects that waste-fuelled power has the potential to meet 2 per cent of UK electricity demand. I 14 - info - november / december 2016
FT named Europe’s ‘most important business read’
The Financial Times has been named as Europe’s most influential international publication in the 2016 Global Business Influencers survey from Ipsos MORI. Over a quarter of the world’s top two million business influencers regard the Financial Times as the most influential media brand (25.4%), followed by CNN (24.7%) and BBC World News (23.9%).
GEFCO boosts UK business
Transport and logistics firm GEFCO UK has secured new projects with several new clients, including Aberdeen City Council and the Forestry Commission, to manage their vehicle conversion. The conversions will range from ply lining to vehicle signage, beacons and interior racking and bulk heads.
Natixis moves into real estate, infrastructure, aircraft To meet the needs of institutional investors, Natixis Asset Management has launched a new area of expertise, real asset private debt, combining three complementary, high-potential sectors: real estate, infrastructure and aircraft. These private debt financing units aim to offer more diverse asset classes to investors. By 2018, the company aims to have €3bn in assets under management and a team of 15 specialists to service the new business.
UBS launches digital wealth management platform
UBS SmartWealth provides regulated and real-time advice online, recommending suitable investment strategies based on clients’ individual financial situations and their attitude to risk. Putting life goals at the centre of the client’s wealth management strategy, investments are regularly checked and adjusted by experts. I
BUSINE S S WOR LD – NE WS AND ANALYSI S
Airbus’s Zephyr orders take off Demand for Airbus’s modern airship Zephyr continues to
grow, with the UK Ministry of Defence increasing its order to three units. The ultra-lightweight unmanned aerial vehicle (UAV), formally known as the Airbus Zephyr S High Altitude Pseudo-Satellite (HAPS) unit, flies at 65,000ft and can fly over the same area of land or sea for weeks at a time, without landing. With a wingspan of 25 metres, it runs exclusively on solar power. ‘Zephyr is a highly cost-effective complement to satellites
The Zephyr is leading the field of UAVs. In addition to
and conventional aircraft with the potential to bring unique
being used for military purposes, the unmanned aerial
communication and surveillance capabilities to the UK
vehicle can be used for humanitarian missions, precision
and other nations,’ said Sophie Thomas, HAPS Programme
farming, or even to provide internet coverage to regions with
Manager at Airbus, commenting on the news.
no connectivity. It will be delivered in summer 2017. I
Many of us have dedicated more than a decade to this project. It’s an incredible feeling to see it take off like this – Paul Stevens, System Design Authority for Zephyr S
Renault lines up Microsoft for connected cars The Renault-Nissan Alliance and Microsoft Corporation
and personal,’ said Ogi Redzic, Renault-Nissan Alliance
have signed a global, multiyear agreement to work
Senior Vice President, Connected Vehicles and Mobility
together to develop next-generation connected services
Services. ‘While the connected car experience is in
for cars, powered by Microsoft Azure. The new services
its infancy, we believe there’s so much potential to
will offer advanced navigation, predictive maintenance and
dramatically change the industry.’
vehicle-centric services, remote monitoring of car features, external mobile experiences and over-the-air updates. ‘A car is becoming increasingly connected, intelligent
The Renault-Nissan Alliance aims to develop connectivity technologies to support the launch of 10 vehicles with autonomous driving technology by 2020. I
PwC brings in legal division
Following approval by the Solicitors Regulation Authority, PwC is integrating PwC Legal into its UK business, in order to become a multi-disciplinary practice. ‘This is the natural next step. PwC Legal has a simple strategy to offer advice that complements services provided by PwC,’ said Kevin Burrowes, Head of Clients and Markets and Executive Board Member at PwC. PwC Legal has 16 partners, 26 directors and a team of 350 based around the country.
SPIE UK goes underground
BT has awarded SPIE UK a contract to upgrade 23km of its networking tunnels, which carry cabling that forms the base of BT’s central communications infrastructure. The contract, worth £3.3m, sees SPIE provide BT with cost planning and risk management consultancy, alongside design and technical management. The two companies have worked together since 2011.
VINCI Construction Grands Projects wins gold
At the Groupe Moniteur BIM d’Or awards, which rewards the best Building Information Modeling (BIM) and digital modeling initiatives by French companies, VINCI Construction Grands Projects won the top prize for its project to renovate the five-star Mandarin Oriental Hotel in London. In total, VINCI won eight gongs during the ceremony, held on 19 September. I info
- november / december 2016 - 15
Analysis and look ahead As we approach the end of the year, INFO looks at the latest news on Brexit and its impact on the Franco-British community here is now no doubt left that Brexit will impact all of us.
T
have noted that many of our consulting firm members and
Uncertainty reigns over how Brexit will be implemented;
others have set up their own in-house teams to try and cut
who will be allowed to live and work in the UK; whether investing
through the uncertainty: Heads of Brexit have been appointed,
in long-term projects in the UK is wise; and what the trading
Brexit Taskforces have been set up, and Brexit Hubs (including
relationship with the EU will look like, post-Brexit. Paired with
our own, on the French Chamber website) have been created.
rising inflation and slower growth, some businesses have even had to adjust their prices, which then has an impact on sales.
The general advice for companies today is to plan for the worst and hope for the best. This means imagining an outcome
The recent High Court ruling, which blocks Theresa May
where UK-based companies must trade with the EU using
from triggering Article 50 without the Parliament’s consent,
World Trade Organisation rules (and, of course, the associated
makes the outlook even more uncertain, Carolyn Fairbairn, the
tariffs). Only time will tell how Brexit is negotiated, but in the
Director General of the CBI, has warned.
meantime, preparing for tougher times is your best strategy.
At the Chamber too, since the EU Referendum result, we
We will stay by your side throughout the journey. I JH
Key dates Autumn Statement
Monetary Policy Committee
European Council meeting
London, 23 November
Announcement
Brussels, 15-16 December
Chancellor Philip Hammond will use
London, 15 December
When asked about his meeting with
this high-profile speech to set out his
How much impact has Brexit had on the
Prime Minister Theresa May in October,
forecasts for the year ahead. Expect to
UK’s finances? The Bank of England’s
Commission
hear clear messages about Britain being
Monetary Policy Committee will release
Juncker just responded with, ‘Pfffff...’
open for business... but the devil will be
its minutes in December, outlining how
Will the UK Government manage to
in the detail of his statement, including
the economics look, and how they plan
make more headway during the last EU
what he has to say about Brexit.
to ease the pressure.
meeting of 2016?
President
Jean-Claude
In my opinion, the only real alternative to a “hard Brexit” is “no Brexit”. Of course it is, and can only be, for the UK to assess the outcome of the negotiations and determine if Brexit is really in their interest [...] To put it simply, the ball is now in your court
The French community in the UK is worried because of the great uncertainty about its future; its members have invested a lot in this country. It is also worried, because in the aftermath of the referendum, some French nationals were subjected to negative or aggressive language
DONALD TUSK, President of the European Council, speaking to the European Policy Centre in October
HE MS SYLVIE BERMANN, French Ambassador to the UK, speaking to the House of Lords’ Select Committee on the European Union
16 - info - november / december 2016
COMMENT: BUSINESS CONFIDENCE ’SHATTERED’ Vicky Pryce, Board Member of the Centre for Economic and Business Research (CEBR) and a former Joint Head of the Government Economic Service, was the guest speaker at the Chamber’s Women’s Business Club, held on 6 October at the French Residence. In this comment piece, she shares her view on how Brexit has affected business confidence across the UK
T
he ‘no’ vote in the EU referendum of 23 June was a huge
feet, looking at possibly relocating some of their operations
shock to the markets: they simply had not priced in that the
elsewhere and the government has had to offer guarantees,
British people would vote to leave the European Union.
as with Nissan for example, to ensure continued investment
What was the immediate effect? Sterling fell to levels
in the UK. The financial sector is also increasingly vocal about
not seen in 30 years and the stock market nosedived. But
the danger to the City of losing ‘passporting’ rights and the
reassurances given by Bank of England governor Mark Carney
tech sector is writing open letters to highlight the importance
on the morning of the 24th helped to rally shares. Carney gave
of access to a foreign talent pool. Meanwhile, Cabinet
immediate extra liquidity
divisions are surfacing
assistance to the banks,
daily – over the precise
with more promised if
nature of immigration
needed, and cancelled the
controls; the need to
requirement for building
protect the City and
up a counter-cyclical capital
what the cost of that
buffer next year, which
might be; whether WTO
released a further £150bn
tariffs will be what Britain
into the system. In August,
reverts to after a clean
interest rates were cut
break in two years time;
to 0.25 per cent, and he
and/or on the final terms
introduced a new bout of
of any agreement before
quantitative easing, worth
the ‘divorce’.
up to £60bn of government
Will
bonds in the secondary
extension
market. This has helped to steady the nerves. After an initial sharp drop in sentiment suggesting that a recession was imminent, business and consumer confidence
there of
be
an
Britain’s
current membership if no satisfactory deal is reached by 2019? Or no ‘Brexit ‘ after all? What are our former European partners prepared to negotiate? All unknown.
recovered through the summer months. Manufacturing
The latest estimates suggest that the economy grew by
exports benefited from the lower pound, and taking
0.5 per cent in the third quarter, faster than expected. That
advantage of a weak exchange rate, households and overseas
is welcome. However, this was due entirely to services growth
buyers went on spending in the shops. Forecasts of recession
while industrial production, manufacturing and construction
were replaced by expectations of growth of 1.8 per cent or
all fell. Commercial property investment has dropped to its
more for 2016 as a whole, as the economy was proving to be
lowest level in four years and inflation has risen to 1 per cent
remarkably resilient.
and will go up further because of sterling’s depreciation, eating up any real rises in incomes. And while the UK will beat
The storm after the calm
forecasts for this year, the uncertainty over possible trade
Yet, no one knows what ‘Brexit means Brexit’ actually means,
arrangements will affect productivity and growth for some
and businesses and markets were surprised by the increasingly
time to come. For the next year alone, growth forecasts have
stronger ‘hard Brexit’ tone at the Conservative Party Conference.
been cut to around 1 per cent, half of what people thought before the vote. I VP
As a result, large firms have started voting with their
info
- november / december 2016 - 17
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BUSINE S S WOR LD – S TART- UP S TORY
Teads
DISRUPTING
VIDEO
Founded in 2011 Employees: 400 Equity funding: $55m Acquisitions: 6
Fast-moving French start-up Teads is transforming the way that publishers and advertisers use video online
E
veryone hates intrusive video advertising. You know the type:
Media movers
those ads that auto-play when you click on a link and then
The result of this is that native advertising has been widely
drive you mad as you try to figure out which browser tab is
adopted by publishers worldwide who, faced with a challenging
producing the unwanted noise.
market, are always on the lookout for new income streams. The
Pierre Chappaz, the Co-Founder and Executive Chairman of
Guardian, The Telegraph, CNN, Le Figaro, Le Monde, Les Echos,
fast-growing French tech company Teads, does not like them
Vogue, Vanity Fair, Bild, Welt, El País... hundreds of the world’s
either: ‘It’s a terrible user experience,’ he says. ‘It’s advertising
major publishing companies use Teads today. In total, the
that is forced on you. Users deserve a better experience.’
company today has a reach of 1.2 billion unique users through
Together with Loïc Soubeyrand, Jeremy Arditi and Bertrand Quesada, the start-up was founded in 2011 to ‘re-invent’ the advertising experience.
the publishers that it works with. ‘It’s a massive revenue opportunity for them,’ explains Chappaz. ‘With the native format, we give them access to a
While the company has now grown to more than 450
massive inventory and they can insert the advertisers’ videos
employees across 30 offices in 19 countries, its mission
into their articles. It’s a game changer for publishing, because it’s
continues to be the improvement of the video advertising
a brand new revenue flow without ruining the user experience.’
market. Its core proposition is so-called ‘outstream’ or ‘native’
This popularity among publishers means that since
video advertising, where ads exist on their own – they are not
December 2015, Teads has consistently been measured,
tied to another piece of video content.
month after month, as the number one global video advertising
‘When ads are presented this way, it is more respectful of the viewer,’ Chappaz explains. ‘Our ads are soundless by default,
marketplace in the world by comScore. Its success has helped the company to attract significant
We can become the biggest independent company in the advertising industry within five years so the user can either decide to activate the ad and watch it, or
funding – more than $55m in five rounds – which has helped
they can just ignore it if they are not interested.’
Teads to grow and acquire other start-ups. This is a key part of
The advertisers love it, too, as the videos are only viewed by people that are interested in doing so.
the company’s growth plan. ‘Our strategy is to consolidate around other companies that
This contrasts starkly with ‘pre-roll’ advertising, where users
can provide us with technology we don’t have,’ says Chappaz.
are forced to watch an ad before having access to the video
‘This allows the Teads team to stay focused on what we do best,
they originally wanted to watch. Media analyst firm comScore
which is to scale our platform and provide the best service, at
estimates that 60 per cent of people leave a page in less than
scale, to publishers and brands.’
two seconds when they are confronted with a pre-roll ad.
But the company has even bigger future goals: ‘Our goal is to
‘This is a disaster for the brand, as although they have to pay
build a force that, working with the best publishers around the
for the click, it doesn’t actually become a video view,’ Chappaz
world, is capable of challenging and presenting an alternative to
says. ‘With our model, it’s a totally different operation: brands
Facebook and Google. We can become the biggest independent
only pay if a user is actually interested in watching your ad.’
company in the advertising industry within five years.’ I JH
info
- november / december 2016 - 19
ContentSquare raises $20m warchest
Linkfluence fundraises €12m for growth
ContentSquare uses artificial intelligence to capture
Linkfluence has closed a €12m investment round with
behavior insights in ecommerce and digital experiences, to
existing shareholders Banexi Ventures, Orkos Capital and
help brands increase their conversion rates. London-based
Sigma Gestion. BNP Paribas Development has also joined
investors Highland Europe provided the Series B funding
as an investor in the social media intelligence firm. The
in October, which will be used to expand its international
investment will be used by Linkfluence to accelerate its
operations.
international growth and R&D. The company helps brands to monitor, analyse and engage social media, tracking more than 110 million publications and 300 million sources in 60 languages. Existing clients include multinationals such as Danone, Sanofi, Orange and McDonald’s. I
Teads acquires Brainient to make smarter ads Video advertising marketplace Teads has acquired Brainient, a British company with technology that matches
The advanced and predictive analytics market is growing fast. By 2018, analysts predict it will be worth more than $3bn
a user’s profile and preferences. This includes sociodemographic data, their location, the time of day, weather and other contextual data. Teads will use this technology to engage consumers better and to improve results for the advertisers that use the Teads platform. I
Using artificial intelligence to track consumers is a relatively new market, which ContentSquare is now leading. The platform collects more than 1,000 billion user mouse movements, screen touches and interactions in order to segment visitors based on intention and behavioural patterns. In practice, it gives brands unique data to understand why online visitors do or do not purchase Customer acquisition is not the company’s sole focus,
Aubaine launches first London deli in Covent Garden French brasserie Aubaine has opened its first Aubaine Deli, in London’s Covent Garden. The store will offer a
however. The technology’s true focus is on understanding
range of products from its bakery, including its signature
and improving customer experience.
boulangerie and viennoiserie range, sandwiches, hot and
‘Our clients want to see measurable conversion rate
cold breakfast dishes as well as salads and sharing boards.
results. We provide these results and even allow individual
‘We are incredibly proud of our bakery and boulangerie,
team members to measure their own contribution to the
and our first Aubaine Deli will showcase this,’ said Nick
sales increase,’ explained Jonathan Cherki, Founder and CEO
Young, Aubaine UK’s CEO. ‘We will open all day and offer a
of ContentSquare.
range that will be unique to Covent Garden and rooted in
The advanced and predictive analytics market is growing
our French heritage, but with a modern Aubaine twist.’ I
fast. By 2018, analysts predict it will be worth more than $3bn. ‘Our revenue has grown 20-fold in the past four years,’ added Cherki. ‘This momentum and strength supports our
Showroomprivé to hire 150 new staff
ambition to become the world leader in our field and to have
Online private sales group Showroomprivé has announced
the ability to offer a successful, user-friendly solution that
it will create 150 new positions in 2017 in France and
can be operated in only a few clicks.’
internationally, to match its growth. The positions will
ContentSquare’s customers include hundreds of global
range from business development roles to purchasing, IT
brands, such as: AccorHotels, Best Western, L’Occitane,
and customer service. In total, the group now has more
L’Oréal, Lacoste, TAG Heuer, Unilever and others. The
than 830 employees. ‘The ecommerce sector in Europe is
company was founded in 2012 and is co-headquarted in
thriving. We are delighted to be able to offer a multitude
New York and Paris, with a third office in London. It was
of career opportunities to so many talented people within
recognised by Gartner in 2014 as one of ‘the most
Showroomprivé,’ said Thierry Petit and David Dayan, the
innovative ecommerce vendors in the world’. I
company’s co-founders and co-CEOs.. I
20 - info - november / december 2016
BUSINE S S WOR LD – S TART- UPS & SME S
Petrossian expanding London operations Petrossian brothers, who introduced caviar to France. However, its international growth has primarily focused on the US. Petrossian opened its first American boutique in New York, followed by a restaurant, in 1984. A West Hollywood store and restaurant was then opened in 2001, as well as the Petrossian Lounge in The Bellagio Hotel in Las Vegas. In Europe, the brand remained France-based until 2014, when it opened a boutique in Brussels. I
Petrossian, the luxury caviar brand, has opened a London
Luxury sector boost
warehouse to streamline its operations, and intends to open
Petrossian’s expansion in London is
a boutique in the West End in the near future.
just one of many luxury brands making
The company told INFO that its immediate objective is to
a move in the UK. Q3 2016 has been quite remarkable
concentrate on B2B sales. Petrossian was already supplying
44%
Growth in spend by US tourists making the most of the pound’s drop this summer
its products to UK hotels and restaurants from Paris. In order
for the luxury industry, with many brands
to develop sales further, the firm has now opened a South-
in the UK receiving a welcome boost from tourists making the
West London warehouse.
most of the sharp drop in the pound. This summer, US visitors spent 44 per cent more than they
‘We are now distributing from our newly-opened London warehouse,’ said Isabelle Augier, director of Petrossian UK.
did in 2015, while Chinese tourists spent 21 per cent more.
‘This is the way forward for our company to be efficient in
This has translated into higher luxury sales, too: in July, sales
the UK. We are delighted to supply some of the best hotels,
of watches and jewellery were up 16.6 per cent compared to
restaurants and retailers in London at very short notice.’
2015, according to the Office for National Statistics. I
The luxury brand was first established in 1920 by the
For Chamber members: 10 per cent discount
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E DUC ATION – NE WS
One-quarter of best business schools are French
IN BRIEF - IN BRIEF - IN BRIEF - IN BRIEF - IN BRIEF - IN BRIEF - IN BRIEF
Largest intake yet for EM Normandie in Oxford EM Normandie has welcomed 89 students to its Oxford
Twenty-four French business schools have been included
campus this academic year, its largest-ever intake of
in the Financial Times’ 2016 Masters in Management Global
students onto its ‘Grande Ecole Programme’. Hendrik Lohse,
Rankings, cementing French academia as a world leader in
EM Normandie’s Oxford Campus Director, said: ‘Oxford is
business management. Of these, 12 are Chamber members:
a vibrant and cosmopolitan city and continues to attract
• HEC Paris (ranked 2nd),
students from all over the world. Our students are coming
• Essec Business School (3),
here to gain insight from some of the best minds in the
• ESCP Europe (4),
field of business. We hope to continue the expansion of
• Grenoble Ecole de Management (13),
this campus to meet the growing demand we anticipate in
• Edhec Business School (15),
coming years.’ I
• Audiencia Business School (24), • Neoma Business School (34),
ESCP Europe launches two new courses in London
• Essca School of Management (49),
Business school ESCP Europe is launching a new-style MBA
• Kedge Business School (53),
in International Management and a new Executive Masters
• Université Paris-Dauphine (57),
in Manufacturing Automation and Digital Transformation
• La Rochelle Business School (60) and
in London. The MBA, launching in September 2017, is a
• EM Normandie (63).
one-year, two-country full-time programme for young
The ranking is based on data collected from two surveys:
professionals with three years’ experience, while the
one of the participating business schools and the other of
Executive Masters is being developed in conjunction with
alumni who graduated three years ago. I
the Politecnico di Torino in Italy and process automation and
Read the FT’s full report on the rankings: https://goo.gl/UeKzvn
manufacturing firm Comau, beginning in January 2017. I
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BUSINE S S WOR LD – R E PORT S & R E SE ARCH
A selection of research papers and reports produced by Chamber member companies
EY Innovation and the FinTech landscape The global FinTech industry is growing apace, using technology innovation to capture market share from incumbents in many areas of financial services. While the FinTech entrants’ greatest impacts to date have been at the retail end of the market, the opportunity for collaboration in capital markets is real and growing. This is great timing, given the challenges faced, where innovation has become mandatory. Shaped by more than 40 stakeholder interviews, EY shines a light on the investment banking industry, examining why and how capital markets firms across the globe can and should collaborate with FinTech organisations to drive their own evolution. Innovation and the FinTech landscape: How collaboration with FinTech can transform investment banking. Available at: https://goo.gl/Ma8XMA
UBS Workforce Futures Tomorrow’s workforce will look and behave very differently. Collaborative, driven and iconoclastic Millennials will make up almost three-quarters of the global working population by 2025. Old certainties, both good and bad, about the attitudes and aspirations of the global workforce will crumble over the next decade as a powerful new wave of technological disruption and automation sweeps across the world. This new report from global future consultants The Future Laboratory and UBS examines the exciting opportunities for businesses in an emerging era when artificial intelligence, virtual reality, robotics and advanced data analytics will be established elements of the workforce landscape. Workforce Futures: Four key trends set to radically alter the workforce by 2035 Available at: https://goo.gl/U6tPzC
Atos Demanding Digital The UK is becoming a nation of digitally-discerning consumers willing to click-off and checkout if their expectations of the digital services and applications they use are not met. According to Atos’s research paper, one-third of consumers say that failing digital services affect brand loyalty, while the majority of consumers will give organisations just a couple of chances to get a digital experience right before they give up. This independently-commissioned research takes a look at the digital preferences of today’s consumers and citizens, what drives them to digital, what drives them away and how they define excellence. Demanding Digital: The rise of the digitally discerning consumer – September 2016 Available at: https://goo.gl/QAlKUx
info
info - march / april 2016 - 23 - november / december
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focus DISRUPT OR BE C
apitalism is a 'perennial gale of creative destruction', the economist Joseph Schumpeter wrote in his seminal œuvre, Capitalism, Socialism, and Democracy (1942). His thesis was that capitalism is an evolutionary process, where old business models are incessantly destroyed and new ones are incessantly created. Three-quarters of a century later, Schtumpeter's words are still as relevant as ever: disruption continues to push companies to adjust and adapt to new business models and markets. Business leaders find themselves challenged as never before. In this issue of INFO – the last of 2016, which the UK will remember as the most disruptive year in a generation – we take a deep dive into how disruption is affecting not just Franco-British businesses, but also society as a whole. The French Minister of State for Innovation and Digital Affairs, Axelle Lemaire, and the British Minister of State for Digital and Culture, the Rt Hon Matthew Hancock, open this Focus with a top-level view of how disruption is affecting governments and the people they serve. This is followed by a slew of articles featuring some of Europe's leading business minds, academics and investors that put disruption into a business context. In his interview with INFO (p30), Vivendi CEO Arnaud de Puyfontaine says that the best way to embrace disruption is to make it your own. I hope that the next 20 pages will help you to own your space, own your market, and continue to thrive. I JH
info
- november / december 2016 - 25
DISRUPTION IN NUMBERS Data is one of the key tools used by disruptors to change and create new markets. INFO looks at the data surrounding disruption, to see what the major trends are affecting disruptive businesses
HOW CONCERNED ARE YOU ABOUT TECHNOLOGICAL CHANGE AND NEW MARKET ENTRANTS? Entertainment and media
47%
Insurance
22%
39%
Banking
22%
36%
Healthcare
19%
31%
Asset Management
24%
20% 14%
FRENCH AND BRITISH DISRUPTIVE START-UPS HAVE BECOME UNICORNS
7
1
Source: PwC
Source: Fortune
number of UK unicorns Global Fashion Group London Uk, E-commerce
Powa London Uk, Mobile payments
Blippar London Uk, Augmented reality
BlaBlaCar Paris, France Transportation
number of French unicorns
Farfetch London Uk, E-commerce
Oxford Nanopore Oxford UK, Biotechnology
Funding Circle London Uk, CrowdFunding
79%
VS
of the most innovative companies have well-defined innovation strategies
TransferWise London Uk, Mobile payments
47% of the least innovative companies
Source: PwC
COMPANIES ARE AT RISK
Source: Accenture
20% 52%
75%
of Fortune 500 companies have gone bankrupt, been acquired or ceased to exist since 2000
of chief strategy officers believe their companies are ‘highly prepared’ for sudden industry disruption
of Standard & Poor’s 500 companies from 2012 will disappear by 2027
$4.7tn
of revenue for traditional financial institutions is at risk of being disrupted by new technology entrants Source: Golden Sachs
The cost of building a start-up has decreased dramatically from $5m in 2000 to $5,000 in 2011 Source: Upfront Ventures
The UK fintech sector has now grown from its disruptive roots into an industry of its own right, generating £6.6bn in revenue in 2015 Harlett Baldwin, Economic Secretary to the Treasury
26 - info - november / december 2016
WILL FINANCIAL INSTITUTIONS BE DISRUPTED ?
MEDIA MENTIONS OF ‘DISRUPTIVE INNOVATION’ ARE NCREASING, SHOWING HOW DISRUPTION IS BECOMING A TALKING POINT 2,075 1,745 1,528
of bank CEOs believe that part of their business is at risk of being lost to stand-alone fintech companies
918 624
Characteristics of disruptive businesses include: lower gross margins, smaller target markets, and simpler products and services that may not appear as attractive as existing solutions when compared against traditional performance metrics
378
2010 2011 2012 2013 2014 2015 Figures show number of media articles mentioning ‘disruptive innovation ‘ in each calendar year, exclusing duplications
DISRUPTORS ARE WORTH AS MUCH, BUT EMPLOY FEWER PEOPLE:
Company (industry)
Professor Clayton Christensen, who coined the term 'disruptive innovation'
Value in $bn
...but with fewer employees
41.2
France Télécom Orange
1,500 vs 165,500
Netflix (media)
25.2
Saint-Gobain
2,200 vs 187,000
Flipkart (e-commerce)
13 10.6
Peugeot
600 vs 190,000
Veolia Environnement
8,000 vs 203,000
Square (mobile payment)
6
Faurecia
1,000 vs 82,000
Spotify (music)
4
BioMérieux
1,370 vs 9,000
2.6
Air France
1,300 vs 95,000
Criteo (advertising)
THE TIME TO REACH A BILLION DOLLAR VALUATION IS FALLING
Source: Deloitte
65% 51%
20
10 Y E A R S
Equivalent to...
Uber (transport)
AirBnb (accommodation)
Source: PwC
YES 83%
Source: EY
8
6
of insurance CEOs see new market entrants as a threat to growth
of IT leaders believe their company faces digital disruption before 2018
Source: PwC
Source: Microsoft
46%
4
2 Typical Google Facebook Tesla Uber WhatsApp Snapchat Oculus Rift Fortune 1998 2004 2003 2009 2009 2011 2012 500 companies
of senior leaders are unwilling to disrupt their business to grow in the future Source: Microsoft
info
- november / december 2016 - 27
© Patrick Vedrune
INFO interviews:
AXELLE LEMAIRE French Minister of State for Innovation and Digital Affairs How important is digital disruption in government, and
Some 150,000 people participated, more than 90 modifications
why is it important for government services to become
were made and five new additions were added onto the Digital Bill.
more digital? The digital revolution is affecting all economic sectors and
How are you supporting disruption among French start-ups
changing the way that people consume goods and services,
and businesses?
and this is changing citizens’ expectations of public authorities.
France is already embracing the digital revolution. As you know,
Digital disruption in government is part of this same movement,
in France we take revolutions rather seriously... and there is a
and it could be a key factor towards improving the effectiveness
deep political will to support this important trend.
of the public administration. There is still much to be done.
We are acting from a number of angles to support this
When I was appointed Minister, I was struck by how much
digital transition. For example, we have put €20bn of public
France is still a paper-based country, especially when it comes
and private money into building an ultra-fast fibre optic internet
to administration and political decision-making processes.
broadband network across the whole country by 2022; we have
What actions are you taking to bring the digital disruption
given subsidies to businesses that invest in their own digitisation;
agenda forward?
and are supporting the creation of a digitally-savvy workforce
I’ve been working relentlessly on bringing digital to Government
and teaching coding in our primary schools. Last but not least,
services, such as massive open data, horizontal structures
we believe that digital opportunities must benefit the majority of
and bottom-up problem-solving. In 2012, we created a new
people – not create new inequalities between parts of society.
structure dedicated specifically to public sector modernisation,
The Bill for a Digital Republic ensures this.
pushed the growth and internationalisation of ‘La French Tech’;
running the public open-data process and experiments in open innovation between government and start-ups.
Can France become a global leader in disruption? How?
That is the spirit of my recently-enacted Bill for a Digital
France now has everything it needs to be a global leader in
Republic. By implementing open data by default in government
disruption. We have a well-educated workforce, have important
services – creating a public service for data and fostering
venture capital funds located in France, and we have a strong
information mobility between departments – it creates a digital
and diverse start-up ecosystem.
revolution that cuts through the heart of French Government.
In addition, this coming year, France will hold the presidency
This Digital Bill is also a good example of our disruptive
of the Open Government Partnership – a multilateral initiative
approach. For the first time, through a digital platform built
that aims to secure commitments from governments to
by a French start-up, we have offered every French citizen the
promote transparency, empower citizens, fight corruption
opportunity to actively participate in the Bill. For three weeks,
and harness new technologies. This will be another great
last autumn, everyone had the opportunity to vote on laws
opportunity for France to promote its widespread knowledge
and propose new ones, just as an MP could do with any bill.
and collective ability to disrupt. I Interview by JH
28 - info - november / december 2016
INFO interviews:
THE RT HON MATTHEW HANCOCK MP British Minister of State for Digital and Culture How are you bringing the digital disruption agenda forward?
How are you supporting disruption among UK start-ups and
The UK is one of the world’s leading digital economies. Digital
businesses?
businesses contributed £118bn to our economy in 2015 and
We want the UK to be the best place in the world to start up and
employed more than 1.4 million people, but this is just one part
scale up a digital business. We launched Tech City in London in
of the story. Technology is transforming every sector – creating
2010 and it is now recognised as one of the leading tech clusters
new products and customer experiences and improving business
in the world. By funding initiatives such as Tech City UK, the
productivity. We are doing everything we can to support this.
Digital Catapult, and the Internet of Things UK programme, we
We are recognised as a leader in digital government – alert to the opportunities of technology and the internet, open to sharing
are helping innovative businesses across the country to expand and flourish.
and learning with other countries. We are a founder-member
We’ve taken huge steps to make sure the UK is attractive
of D5, a group of digitally-advanced governments working
to investors and entrepreneurs. We have a highly-competitive
together to share best practice, develop solutions and build
tax regime, and British Business Bank programmes have also
digital public services, and are committed to unlocking
unlocked £3.2bn of finance for 51,000 smaller businesses,
untapped growth in the data economy through our bilateral
including 41,900 start-up loans worth more than £253m.
UK-France Data Taskforce. We’re making sure we have the digital infrastructure we need
Can the UK become a global leader in disruption? How?
across the whole country. We’re on track to give 95 per cent of
We are already a global leader in developing new technology,
the UK’s homes and businesses access to superfast broadband
and in Government we are working tirelessly to make sure
by the end of 2017, and to reach 97 per cent by the end of 2020.
the incredible success continues. The UK is rightly seen as the
But we need to go further so the UK benefits from the next
fintech capital of the world and I’m particularly excited about
generation of connectivity, including 5G and fibre networks.
the potential for the legal profession, which is just starting to
We need to help everyone get the skills they need. We’ve introduced a new computing curriculum, and we’ve announced
explore what digital technology can do. I know other industries will follow or they will be left behind.
plans to make training in basic digital skills free for adults in
We need to make sure we’re at the cutting edge of research
England who need it. We’re also supporting the advanced skills
and innovation, as we have been since the industrial revolution.
increasingly in demand across the economy by supporting the
Technologies such as artificial intelligence and data analytics
establishment of the National College for Digital Skills.
are changing how the world works, and British companies
It’s essential we have a safe and secure online environment
are leading the way. Abcam, for example, is a UK life sciences
and protect against cyber threats. We are investing £1.9bn to
firm worth £1.5bn which takes orders on the web and uses
help make the UK the safest place to live and do business online,
robot-powered fridges to select and deliver antibodies for
and have recently opened the National Cyber Security Centre
shipment. Its effective data use has turned it from small start-up
and launched our National Cyber Security Strategy.
to dominant world player. I Interview by JH
info
- november / december 2016 - 29
FOCUS – DI SRUP T OR BE DI SRUP TE D
Reacting to
Disruption A R NAU D DE P U YFONTAINE
TANUJA R ANDER Y
Disruption affects all businesses, large and small. INFO interviews Arnaud de Puyfontaine, CEO of Vivendi, and Tanuja Randery, President UK and Ireland of Schneider Electric, to hear how larger businesses are reacting
W
hen you’re a start-up, reacting to disruption is simple:
from downloading. Swift reaction to the disruptive change is
you just go ahead and pivot. This is much harder to
what enabled Universal Music to thrive.
do when you’re a multi-billion pound business with
offices spread across the world, employing tens of thousands
Constant innovation
of people. When you take a business of that spread, depth and
Constant innovation within your business also helps to mitigate
size, how do you react to disruption?
the effect of external disruptors, as Tanuja Randery, Zone
The first step, says Arnaud de Puyfontaine, CEO of Vivendi,
President at Schneider Electric, explains. For her company,
is to recognise that disruption is an issue that affects your
this means partnering with a venture fund and acquiring
business. Too many incumbent companies have their heads in
companies, but also ensuring that innovation is at the heart of
the sand and ignore that their markets are changing – often
the company’s culture.
until it is too late.
‘There is no magic bullet, of course. But what I’ve found is
‘No business – no matter how large or seemingly entrenched
that, from a cultural perspective, ensuring that your company’s
– is immune to disruption,’ he explains. ‘The reality of “adapt or
core DNA is around innovation, constantly looking for adjacent
die” must be constantly front and centre.’
spaces to grow into, helps to keep the plane flying,’ she says.
Puyfontaine uses the music industry as an example. Over
To constantly improve your business and your products
the last 15 years, the digitisation of music has grown significantly,
in a way that keeps you ahead of disruptors requires serious
and with this came side effects such as piracy and peer-to-peer
investment and awareness of what is happening in the field,
sharing, as the traditional physical album became less popular
however.
with consumers.
Schneider Electric does not shy away from this: last year, the
The impact on the industry has been enormous: recorded
company spent 5 per cent of its $26bn revenues on R&D. ‘It’s a
music has lost around two-thirds of its value since the turn of
machine that is constantly on the innovation cycle in some form
the century, he explains. Universal Music, the market leader
or another, and that helps us to keep ahead of the market and
that is owned by Vivendi, was deeply impacted by this market
keep competition at bay,’ Randery explains.
shift. But the business did not ignore the problem.
For Puyfontaine, being agile and trying new things is also
‘We anticipated this move and contributed to the
key: ‘The entrepreneurial disruptors experiment their way to
development of services such as streaming, allowing the industry
success. Chief executives of traditional organisations must
to bounce back and find new long-term growth opportunities,’
act the same way,’ he explains. ‘They must adopt this “try
says Puyfontaine. ‘Subscription streaming, previously considered
or fail” approach and accept to take risks in order to survive.
a niche market, is about to become mass market.’
It is no longer simply a matter of “disrupt or be disrupted”.
Indeed, last year, digital sales overtook physical sales for the first time – €8.5bn vs €8.2bn. And in 2016, sales from streaming are expected to grow by 40 per cent, outperforming revenues 30 - info - november / december 2016
The challenge is to create a flexible, fertile environment for individuals and teams to leverage their full potential.’ This is why attracting and retaining talent is critical, he adds.
The entrepreneurial disruptors experiment their way to success. Chief executives of traditional organisations must act the same way. They must adopt this “try or fail” approach and accept to take risks in order to survive ‘Of the skills required, I favour managers and colleagues who share curiosity, determination and insight.’
Schneider Electric also organises between four and eight ‘expeditions’ for senior leaders to meet start-ups and companies
Randery echoed this, explaining how curiosity plays a role
that are doing things differently. ‘It ensures we don’t get stuck in
in keeping the business moving forward. ‘We bring a lot of skills
the old world of operational efficiency,’ she explains. ‘We don’t
from the outside. It’s a company where people have a constant
allow the company’s wide breadth to stifle innovation.’
intellectual curiosity about what they’re doing, and whether there is a better way to do things.’
The evidence is clear: how companies react to disruption matters. Do not allow yourself to be caught short. I JH
CASE STUDY: AXA & KAMET VENTURES We want to build solutions that impact the entire industry
M
any large corporates are responding to disruption
AXA’s data, knowledge and systems – all the important
by setting up their own incubators. Many larger firms
factors that give start-ups growth leverage. In return, AXA
take a hands-off approach to this, giving the incubators the
is given rights of first refusal to invest in the companies
freedom to take risks and discover new products, solutions
built by Kamet.
and markets. Kamet Ventures is a prime example. The start-up studio is backed by insurance giant AXA to the tune of €100m to
'This allows Kamet Ventures to offer the best of both worlds, entrepreneurial agility backed by the competitive advantage of a corporate,' says Guinet.
create new ‘InsurTech’ companies. The incubator is largely autonomous, which enables its entrepreneurs-in-residence to work on new ideas independently. ‘Kamet is completely free to decide which projects it wants to work on, including products that compete directly with AXA,’ explains Stéphane Guinet, Founder and CEO of Kamet Ventures, and a serial insurance entrepreneur himself. ‘Large organisations focus largely on incremental innovation. At the heart of Kamet’s proposition is disruptive innovation, looking at new ways to solve business problems.’ For AXA, the incubator allows the company to benefit from ‘strategic edging’, Guinet adds. The incubator’s role is to build companies that can offer new solutions and new products that will disrupt the insurance market. Kamet Ventures does this by attracting seasoned entrepreneurs that larger organisations such as AXA would usually struggle to bring in. As Kamet Ventures’ sole shareholder, AXA provides
‘The key is not generating ideas, but executing ideas – and that means people. This is one of our key
the companies that the incubator is building with a
differentiators: the quality of the entrepreneurs we are able
unique ecosystem that is plugged into experts, engineers,
to attract, who can then build new companies and new
regulators, business leaders and more. Over the 9-12
solutions. We don’t want to build small things. We want to
month programme, entrepreneurs also benefit from
build solutions that impact the entire industry.’ I
info
- november / december 2016 - 31
DISRUPTION:
Fad or real threat? Davide Sola, Professor of Strategy and Management at ESCP Europe, analyses what is disruption, and why it matters to businesses
T
here is a lot of talk in the media, around conference tables
Apps and cloud services replacing PC and server-based software
and echoing through social media about the phenomenon
are good examples.
of disruption. What is it, what do you need to know about
it and, more importantly, how is it shaping economies and societies moving forward? Let’s start with an example we’re all familiar with, PayPal.
Creating new markets There is a vast difference in the marketing trajectory for sustaining versus disrupting innovation.
Before online transactions became a daily occurrence, there
Sustaining innovation is a known commodity. It is aimed at
were well-established protocols for handling transfers of funds.
consumers in the most profitable niches of an existing market.
A digital transaction could be conducted using a credit card, or
Often, it is merely an improvement on the existing model – such
actual funds could change hands, sometimes represented in
as the new release of the next iPhone, for example. Companies
the form of a paper cheque. It was less than ideal in terms of
on a sustaining innovation trajectory will typically ignore less
convenience.
profitable market segments, in favor of the known commodity
Enter PayPal, originally a player in the handheld device security market. Its founders saw an opportunity to provide a more flexible system to make transactions in a digital environment.
The question is not if, but how to become a disruptor
By allowing the consumer to connect multiple payment options and eliminating the need to disclose sensitive data to
Disruptive innovation seeks the non-consumer. It is based
the seller, they disrupted a system that had been evolving over
on creating new markets. Since it is less profitable, new entrants
generations through innovation. They weren’t so much offering
are less likely to attract competition from industry leaders – and
a new service as they were changing the way we thought about
being first to market gives them a significant advantage. Once
paying for things.
the initial offering is in place, disruptive innovators work to
Disruption is a funny thing, however, as the disruptor becomes the establishment, they themselves become a target
improve in ways that target the most profitable areas of their newly-developed market.
for disruption. Today, a start-up called Stripe is giving a real hard
Disruptive innovation typically follows an easy-to-see
time to PayPal and may be very much its disruptor. So, what
pattern. A new player enters a market with a new business
actually happens?
model. Most industry leaders ignore the new entrant and instead
Innovation vs disruption To understand, we need to make a distinction between sustaining innovation and disrupting innovation. Sustaining innovation, as the name implies, tends to play in favor of the existing market – the ‘incumbents’, if you will. Sustaining innovation improves an existing model, or extends it,
remain focused on what they know is profitable. Meanwhile, the newcomers improve until their product becomes acceptable to the middle of the market, creating new competition for the incumbents. Disruption occurs when the newcomer’s product then undermines the incumbent’s position.
But why does any of this matter?
based on existing customer demand. Examples might include:
Shouldn’t established companies just focus on the more
improved semiconductors, the move from propeller to jet
profitable markets already developed? The answer lies in
engines or increased automation in manufacturing. Sustaining
understanding that the horizons of company life spans are
innovations are not game changers. They are simply more of
shortening from inception to final sale or bankruptcy.
the same, done faster and better.
The average Fortune 500 company lifecycle has fallen from
Disrupting innovations, however, are game changers. They
an average of 61 years in 1950 to the current average of 20
move to interrupt the current business model with a new, fresh
years. Not only that, but public companies are at greater risk,
idea that may supply some of the old needs, but is appealing
with 10 per cent of them failing each year, four times more than
to new customers which the established companies were not
in 1965. Fully one-third will die within five years, versus only 5
reaching effectively or were not interested in reaching anymore.
per cent 50 years ago. In the face of these odds, the question is
Since everything is new, new entrants have an advantage.
not if, but how to become a disruptor and prevent disruption. I
They don’t have to retool or rethink to adopt a new model. 32 - info - november / december 2016
CORPORATE DISRUPTION:
The opportunity to innovate How does disruption affect larger firms? Christophe Chazot, Group Head of Innovation at HSBC Bank, shares the corporate view
A
lmost 20 years after the
like us to believe, the bad news is that
publication of Clayton
‘disruptive innovation’ is almost always
Christensen’s The Innovator’s
fatal to incumbents.
Dilemma, one would think that most companies would be able to conduct
Identify, analyse and act
their innovation agenda in a way that
Each company should find its own way
avoids the risk of disruption.
to identify, analyse and act on disruptive threats, but there are a number of well
Still, most executives and CEOs seem uncertain about their strategy
established procedures and solutions
when facing the challenges of the digital
to do so. At HSBC, we have organised our
revolution. Media and social networks’
innovation agenda along three horizons.
coverage reinforce their doubts by
Horizons 1 and 2 address the
creating an atmosphere of anxiety that recalls, for those who have lived it, the
challenges of ‘sustaining innovation’
pre-2000 internet bubble years.
with digital transformation and R&D. Horizon 3, in which emergent disruptive
Corporate incumbents
emerging population of customers.
forces exist, is addressed through our
The truth is that Christensen’s theory
Ultimately, as the technology scales up,
programme of strategic investments,
does not have only negative messages
they then begin to take over corporate
industry consortia and research
for corporate incumbents. The first
incumbents’ client base.
partnerships.
piece of good news, which is often
Airbnb is a perfect example. Initially
We believe that with this approach
overlooked, is that incumbents who care
targeted at backpackers looking for
we can drive innovation across our four
about disruption almost always survive
cheap accommodation and owners
global businesses while still focusing on
– and even strive – in an environment of
looking for additional revenue – none
our existing revenue streams.
‘sustaining innovation’.
of which is a segment targeted by
The most recent examples include
Re-reading Clayton Christensen is a
traditional accommodation – the
useful exercise that delivers surprisingly
the way in which German Mittelstand
concept was progressively adopted by
positive messages to those executives
companies leverage data analytics
regular travellers and disrupted the
who are willing to look at the challenges
to further improve their products.
hotel business.
and avoid complacency. But in these
Surprisingly, most innovations should
In the financial world, the way
times of digital acceleration, be careful
probably be classified as ‘sustaining
in which Alibaba and Tencent have
not to delay this exercise. As Reed
innovation’, which benefit incumbents.
reorganised payments through the
Hastings from Netflix put it, 'Companies
creation of a completely new system
rarely die from moving too fast, and
then becomes how to identify and
is another example of such disruption.
they frequently die from moving too
analyse potential ‘disruptive innovation’.
These two companies now dominate
slowly.'
The areas in which disruption occurs
mobile payments, creating a $20bn fee
are, in fact, relatively well defined –
revenue hole for Chinese banks and
following the announcement that Netflix
they are new technologies or business
credit card companies.
would change its pricing to focus on
The question for large companies
models which initially may be less
This is the risk for incumbents:
He knows what he is talking about:
streaming, the stock price plunged 80
competitive than current ones, but
although disruption happens much
per cent... before recovering by 1,400
address different problems from an
less often than public opinion would
per cent! I
Although disruption happens much less often than public opinion would like us to believe, the bad news is that ‘disruptive innovation’ is almost always fatal to incumbents info
- november / december 2016 - 33
Leading
the
field
John Stokoe CB CBE, Head of Strategic Development at Dassault Systèmes, says being more open, acting decisively and taking more risks is the recipe to staying ahead of disruptors
I
In today's complex and diverse commercial environment, companies which are not in tune with the political and economic nuances of the landscape invariably fail. There have been too
many high-profile business collapses not to take account of the pressures which lead to such a demise. No company is immune, whether a large corporate or a small enterprise. Global economic shock does not discriminate, though it tends to affect larger companies more, with their- wide-spread interests, investments and global investors. Withstanding such shocks and remaining at the leading edge of success is multi-faceted. Staying alert to – and, where possible, anticipating – political and economic change is key, but even more relevant is retaining a willingness and desire to transform and change.
1. Be open to change This is essential in companies which have grown through acquisition. There is a fine line between retaining the brand value of the acquired company and absorbing it completely into
Leaders and managers at every level must have the confidence to observe what is happening, consider relevant factors, decide what needs to be done, and then act – rapidly!
the organisation of the parent which, if carried out too quickly and with lack of sympathy, can destroy the very value for which it was acquired.
Tortuous levels of approvals, bureaucracy and risk aversion prolong decision making, introduce unnecessary complexities
Transformation to retain a competitive edge is about
and add considerable cost. When this occurs, businesses lose
creating a winning culture; seizing the advantage to be gained
sight of the intended outcomes and price themselves out of the
by imaginative ideas and innovation; the adoption of new, game-
market. Such actions fly in the face of trust, responsibility and
changing technologies; and motivating that most important
accountability.
business asset, your people, to be the willing driver on the route to success.
3. Reward (measured) risk
However, none of that will work without strong but
Teams and their leaders should not be fearful of corporate
empathetic leadership to create the culture which empowers
censure for taking measured risks and decisions – such an
people to innovate, create and be willing to take decisions to
environment stifles innovative activity.
grow value.
2. Act quickly
Innovation requires people who will take a decision and, if necessary, ask for approval afterwards, rather than people who will not make any decisions until they have permission
All too often, opportunities are missed or lost due to excessive
from layers of corporate approvers, which simply stops any
bureaucracy and lack of delegation in decision making.
competitive momentum in its tracks.
Speed, coupled to appropriate risk mitigation, is vital, as is
In the latter case, the opportunity will be lost to the
the confidence and authority to assess and take risks at the
competition. The objective is to get inside the competition's
lowest possible level. Confidence and trust in business leaders
decision cycle – being able to think and act faster than a
is a prerequisite.
competitor in order to win.
Competitive risk assessment and mitigation requires
This requires a culture in which leaders are trusted and
an understanding of the nature of the task, what will be
supported to do the right thing, creating an environment for
required to carry it out, and the desired outcome. That only
success with highly motivated, knowledgeable and confident
comes from delegating responsibility to those closest to the
people having implicit trust in their leaders to support, guide
task or opportunity. Pragmatic risk taking greatly assists the
and encourage them, knowing that it is a team effort.
achievement of objectives. It speeds up decision making and generates competitive momentum.
Trusted, respected and responsible leaders will instinctively do the right thing and satisfy those above them that the
Leaders and managers at every level must have the
business is in dynamic, innovative and capable hands. That
confidence to observe what is happening, consider relevant
requires courage to change – but in the knowledge that such
factors, decide what needs to be done, and then act – rapidly!
change will generate a winning, unstoppable momentum. I
34 - info - november / december 2016
FOCUS – DI SRUP T OR BE DI SRUP TE D
SCALING FOR DISRUPTIVE SUCCESS A key aspect to becoming a disruptor is your ability to scale quickly. Chris Sheldrick, Co-Founder and CEO of what3words, looks at how fast-growing, disruptive companies can scale
The world is poorly addressed. In developed nations, bad address systems are frustrating and can cause expensive delays; while in developing nations not being able to provide an official address can be life-threatening in an emergency. what3words is a disruptive company that creates a unique combination of just three words that identifies a 3mx3m square, anywhere on the planet. It’s far more accurate than a postal address and it’s much easier to remember, use and share than a set of coordinates. While the label of ‘disruptive start-up’ is seen by many as a badge of honour, the defining challenge for a business is to scale beyond that initial behaviour change. Here are several ways that it can be done.
Define your ‘critical mass’
Specify and diversify
Success is often measured by volume use. To achieve this, make your tools and services widely available, allow developers to integrate your technology and invest in language updates. Be clear about how many lives you want to change and don’t stop until you’ve exceeded that goal.
Can you be more precise while also being more general? For many fast-growing businesses, such as what3words, this means relentlessly improving and refining your business offering, while also making what you do relevant to ever more industries. The more sectors that can see a benefit in your service, the greater propensity you have for continued growth.
Invest to grow (not grow rich)
Be everywhere, always
‘Investment’ takes many forms – funding, expertise, experience, a shared willingness to affect change. It’s something that should extend beyond a balance sheet, so make sure you take it all in. Also, remember that investment goes both ways. That disruptive start-up mentality will also positively influence the established businesses that invest in you.
If you want to disrupt at a global level, then you must operate on the global stage. Be in the places and spaces where your customers are. That could be the next business convention of industry leaders or on social media, tapping into the discussions and engaging the conversations.
Be the best at what you do The world is full of copycats and competition. If you don’t lay claim to the high ground, then they will. So believe in your disruptive creation and make it the best it can possibly be. Competition is healthy but only when you’re out in front.
To sell a disruptive new product to businesses, allow those business customers to become disruptive through you. Embrace these co-branding opportunities and empower your customers to offer fresh products and experiences. In turn, partnering with established brands adds credentials to your start-up. It works for both sides.
The label of "disruptive start-up" is seen by many as a badge of honour, but the defining challenge for a business is to scale beyond that initial behaviour change. How you continue to redefine the boundaries is what really makes the difference info
- november / december 2016 - 35
INVESTING IN DISRUPTION:
Risk or opportunity? Alexandre Covello, Founder and CEO, AngelsCube, and Co-Chair of the Screening Committee of Harvard Business School Angels of London, says that with great risk comes great reward
T
he last two decades
as
StumbleUpon,
have
seen
huge
levels
of
digital
eBay for $75m) and
disruption across various
Max Levchin (invested
industries,
creating
which was bought by
some
in HomeJoy and Paypal,
of today’s leading corporate
which was sold to eBay
giants, such as Facebook, Amazon,
Google,
Uber,
for $1.5bn). The mouthwatering returns for those
SnapChat or Slack in the US;
investments made at seed
Alibaba, Baidu or WeChat in
or early stage are the reason
China; and the likes of Skype, Spotify or Zalando in Europe. Most of the time, incumbents and market leaders do not worry
that so many smaller angels attempt to replicate that success and are in constant chase of the next disruptive company.
about the market segment that
Disruption is a complex dynamic
the outside disruptor is targeting
though, which is much easier to
because it is considered less relevant
identify with hindsight rather than
or profitable. But a growing number
while it is taking place. For investors,
of start-ups are now doing something that
once
seemed
unthinkable:
disrupting corporate giants. This is a trend that gives corporate executives sleepless nights. If you are part of a successful company or product, chances are a more agile competitor has already started disrupting you.
The investment opportunity Disruptive technologies are therefore an opportunity, both
thinking about the implications of the coming wave of creative disruption, the future can be difficult to apprehend. The best opportunities are also difficult to access; possessing the right entry points in the venture ecosystem is critical. Investing in early stage businesses remains intrinsically risky, however, as each investment is by definition immature. The business is subject to failure from many different angles, including managerial competence, technological efficiency and market acceptance and disruption itself.
for entrepreneurs to launch new ventures and investors to
As digitalisation spreads and low start-up costs enable more
back them, long before they become a threat to established
entrants, we can expect to see accelerated disruption in the
companies. As such, investing in early-stage disruptive
years to come. The cost to launch a tech startup now compared
companies can be a great opportunity as the market will
to just over 15 years ago has been divided by a thousand.
generally be slightly sceptical for some time and it tends to
Digital disruption is an overarching, universal theme with
underestimate the risk of disruption in the short term for
the power to reshape almost any industry that benefits from
established players.
digitalisation, connectivity and sophisticated data processing.
Disruption can thus be very exiting for investors looking to
New technologies to focus on are the ones that will help lower
ride the wave of change in a specific industry. Famous Angel
costs, create productivity savings, for companies and consumers,
Investors include people such as Paul Graham (who invested
and provide more tailor-made solutions. Early winners will be
in Watsi, ClassDojo and Viawebm which was bought by Yahoo
those that have a clear proposition and technological edge that
for $49m), David Lee (invested in DoorDash, Judicata as well
allows a rapid scaling up of business volumes. I
36 - info - november / december 2016
FOCUS – DI SRUP T OR BE DI SRUP TE D
Seven models to build a disruptor EDHEC Business School’s Karin Kollenz-Quétard, Professor of Strategy, and Teaching Assistant Pierre-Olivier Bligny, offer seven techniques for companies to respond to – and become themselves – disruptors
D
ue to rapid advancements
supermarkets, like Carrefour in the
experience in advertising, but also in
of technology, disruption is
1980s. Established brands, such as
distribution (direct and store delivery).
becoming the new normal
Evian could have considered the 30-
Additionally, they set up capsule-
for all industries: digitalisation has
50 per cent cheaper water, occupying
recycling points to become more
fundamentally transformed the way we
massive shelf space, as a threat.
competitive in terms of environmental
do business and has metamorphosed
But actually they profited from its
sustainability.
entire sectors (e.g. music); 3D-printing is
introduction, because supermarkets
changing manufacturing industries; the
helped moving bottled-water
though, if the incumbent company
blockchain is about to disrupt financial
consumption to mainstream from being
focuses on product enhancements
services; big data and the internet of
considered a waste of good money by
only. With the (disruptive) innovation
things enable new or better products,
the average consumer.
becoming better over time, it is likely
services and processes in almost all areas of business; and it is difficult to
A wait-and-see approach is recommended when there is
This option can become a trap,
that at some point it will be good enough for a majority of customers.
3 2 1
identify an industry that will not be
reasonable doubt about the future
At this point, the incumbent will lose
strongly impacted (not to say disrupted)
superiority of the disruption, particularly
market share and eventually go out of
by the advances of artificial intelligence.
if there is a possibility to ‘join the party’
business, succumbing to what is called
Consequently, today’s companies
later at limited extra cost. It is however
‘the innovator’s dilemma’.
will only survive if they learn to live
important to point out, that even if
with disruption. What are the strategic
doing nothing is the best option at a
options for companies facing a potential
given point in time, the company should
disruption, from a new entrant or
closely follow the development of
3. Build the 'best of both worlds'
existing competitor? Here is how to use
the potential disruption and consider
Incumbents can profit from disruptive
new business models and/or technology
preparing one of the following six
innovation as a source for enhancing
to build a disruptor.
alternatives.
their own business, by combining some of the innovation’s characteristics with
1. Wait and see
the strengths of their existing value
Doing nothing but monitoring the
2. Focus on existing business
disruption should always be considered
If it is possible to enhance the current
leads to superior value propositions
as an option, because ex ante it is
product, service or business model
which can only be offered by the
impossible to know whether a newly-
sufficiently to maintain an advantage
incumbent. Hybrid cars are a perfect
launched business model or innovation
over the disruption, a company should
example of responding to disruptive
will actually become a disruption. An
focus on their existing business.
innovation in this way.
innovation can trigger market growth by
Nespresso’s response to the eco-
attracting non-consumers to the market
friendly, cheaper coffee capsules sold
or increasing consumption by existing
in supermarkets is a good example.
customers.
Nespresso strengthened their customer
An example is the introduction of white-label bottled water by
proposition or business model.
This ‘best-of-both-worlds’ approach
relationship management and increased its focus on superior customer
info
- november / december 2016 - 37
4 57 6
4. Create a blue ocean
Alternatively, incumbents can decide to focus on a completely
The Innovator's Dilemma
new combination of product characteristics and thus create a
Coined by Professor Clayton
new market (segment).
Christensen in his 1997 book of
The introduction of Swatch by Swiss watchmakers, which
the same name, the innovator's
were disrupted by Asian competitors such as Seiko offering
dilemma is the concept that
watches with additional functionalities at lower cost, is a text-
businesses will reject innovations
book example of a Blue Ocean Strategy. Companies that exit
based on the fact that customers
the disrupted market and use their existing resources and
cannot currently use them,
capabilities to create new markets are a more extreme form of
thus allowing ideas that have
the same type of response.
great potential to simply go to waste. As a result, incumbent
5. Play both games
companies that do everything correctly can still lose their market leadership – or even fail – because new,
If the disruptive innovation is expected to conquer a significant
unexpected competitors (i.e. disruptors) rise and take
part of the market and there are synergies between the ‘old’
over the market.
business and the disruptive innovation, a company should play both games.
It can do so either by acquiring the disruptor or by copying its business model and value proposition in addition to
7. Partner with the disruptor
keeping its ‘old business’. The new or acquired entity should
If the value propositions, the resources or capabilities of
be integrated with the existing business if the synergies (by far)
the disruptor and the incumbent are complementary to
exceed the risk of conflict between the two business models /
some extent, partnering with the disruptor can be the best
entities.
option. This approach is only recommended if both partners
A good example for playing both games is the launch of the
need each other to succeed – otherwise the risk of one
low-cost airline Germanwings (now Eurowings) by Lufthansa,
partner crowding out the other player in the medium-term is
as well as online banks launched by large retail banks, such as
substantial.
ING Direct by ING or Boursorama by Société Générale. Even if
An example of such a partnership is the cooperation
cannibalisation is a common issue when playing both games,
between the mobile operator Telenor and Facebook. Even if
remember: if there are cannibals in the jungle, always make
Facebook Messenger and WhatsApp disrupt the messaging
sure they are part of your own family!
business of network operators, these applications drive mobile internet uptake and generate data traffic. Furthermore,
6. Embrace the innovation
In some instances, the disruptive innovation is simply superior
Facebook needs mobile network operators for providing access to its content and advertisements.
As shown in the diagram (above), the choice between
to the existing way of doing business. In this case, the
the strategic options depends on the advancement of the
incumbent should adopt the innovation and scale up using its
disruption and on the relation between the disruption and
existing resources and capabilities.
the existing business / value proposition. This relation can
The classic example of this strategic option is the
be complementary in addition to being substituting: on the
brokerage firm Charles Schwab, which changed its business
one extreme, the disruption completely substitutes the
model to e-trading when it realised the superiority of the
‘old’ business model or value propositions; on the other
technology used by a small competitor. Embracing the
extreme, there is a certain complementarity between the
innovation can also entail the acquisition of the disruptor, as
‘old’ business and the disruption, either in terms of resources
in the case of the acquisition of Connor (producing 3.5-inch
and capabilities or in terms of the value proposition (partially
drives) by Seagate (market leader in 5.25-inch drives).
complementary products).
Last but not least, the incumbent’s capabilities and
resources determine which of the seven strategic options for dealing with disruption are feasible for a specific company. I
38 - info - november / december 2016
FOCUS – DI SRUP T OR BE DI SRUP TE D
FULL THROTTLE How can companies best engage with start-up accelerators and the emerging tech ecosystem to tackle disruption? Ian Ellis, Director, Corporate Access, Microsoft Startup Growth Partners, offers his advice
A
s the trend for
cycles of the major banks.
start and end there. How are
element is genuine insight:
corporate innovation
In our case, the Microsoft
you going to make it work,
can the people involved
moves towards open
Accelerator programmes are
both for the start-up and for
in the programme bring
versus closed innovation
focused on the later stage
your company?
value in terms of growing
models, one of the most
of this maturity curve, where
commonly touted ideas
we can provide business
Who to trust?
among large enterprises is
and technical expertise to
The emerging technology
and do they have a strong
to get involved with start-
create high quality scale-up
ecosystem is a tremendously
global or sector perspective?
ups – often in the form of
businesses.
exciting place and there are
This will be instrumental to
many ways to get involved,
ensure the companies the
from simply setting up
accelerator works with are
working with or establishing
world-beating businesses? Have they walked the walk
an accelerator programme, in
Getting involved
order for them to stay ahead
For companies looking to use
an innovation outreach
appropriate and interesting
of the young, promising
accelerators as a pipeline for
programme, to partnering
to your own mission.
industry disruptors.
disruption, it is key to have
with an accelerator, to
a clear strategy about what
even setting up your own
understand motivations: can
are typically designed to
you will do when you find
programme or fund.
they clearly state why they
assist entrepreneurs with
interesting new companies.
Accelerator programmes
Are you there to
all the key ingredients to
Just as it has never been
Next, it is important to
are running the programme
easier to start a company,
and are the expectations with
bring a start-up into the
consume their products,
you can't throw a rock in any
the participating companies
world, including all the things
build partnerships or even
major city without hitting an
clearly aligned? For instance,
that you would expect with
acquire? Being involved
accelerator space and the
accelerators that take equity
growing a company.
to just learn is also fine,
range in quality can be broad.
may have very different
provided that you have a
Your brand is important and
motivations to those that
programmes come in all
clear strategy and don't set
it will be used as currency
do not.
shapes and sizes, from ultra
expectations at the wrong
by any accelerator that you
early-stage like Entrepreneur
level. All too often, major
get involved with, so it is
market reach necessary to
First, which often bring teams
companies approach these
important to understand who
deliver value? This isn't just
together around a concept,
situations without a clear
you are partnering with, why
about gaining customers,
to the FinTech Innovation
plan or set of processes
you/they are getting involved
but also about helping start-
Lab, which is about helping
to enable organisational
and what you can bring to
ups with guidance around
emerging companies in
involvement. While it is great
the table. How can you
product market fit and
the financial services space
for your Board to be involved,
spot the good accelerator
providing a network to test
to navigate the long sales
the conversation cannot just
programmes? The first key
new concepts. I
These days, accelerator
Finally, do they have the
Tips for engaging with start-up accelerators 1 Start with why: Think about why you are looking to engage and your broader vision and goals. 2 Due diligence: Understand who you are getting involved with and their motivations. What are you
associating your brand with and how will it be used?
3 Devil is in the detail:
Be clear and transparent about your engagement model and what outcomes
can be expected.
4 Be open: Be ready to experience new ideas and work out how to bring your organisation with you
in order to create new value for your business.
info
- november / december 2016 - 39
Technology provides the power to disrupt How are companies using technology to disrupt their markets? Huy Nguyen Trieu, CEO of The Disruptive Group and Resident FinTech Expert at Oxford's Saïd Business School, explains
E
verything used to be cheaper. I still remember paying
And it wasn’t long ago that we saw self-driving cars as a distant
five francs for a café in Paris. Today, it’s at least €2, almost
fantasy; Uber has now started to test them in Pittsburgh.
three times more! Everything seems more expensive
today, except when you’re a tech entrepreneur. If you work in tech, everything is much cheaper – even free sometimes… Case in point: when we launched Ukibi in 1999, our first $2m was spent to buy Sun Microsystem
These examples might seem like anecdotes from the startup world or for gadget lovers, but they actually reflect one of the most important trends in our world: the emergence of technology as a new power that is disrupting markets. In numbers, this trend is undeniable. Two decades ago, the
servers and Oracle licenses. This was a necessary cost to
five largest companies in the world by market capitalisation
launch an internet business. Today, how much would it cost?
were General Electric, Shell, Coca-Cola, NTT from Japan as
Nothing, rien. Today, we would not buy any computers or pay
well as Exxon.
for expensive software licenses; we would rent all of it from
Ten years later, the telecom and food industries were
Amazon Web Services or Microsoft Azure, and be charged on
replaced by software and banking, and the top companies
a pay-as-you-go basis.
were Exxon, General Electric, Microsoft, Citigroup and
So technology is much cheaper than before. It’s also
Gazprom. And today? You guessed it. Everybody is out, and
much more powerful. Of course, we know that computers
the tech companies are masters of the universe: Apple,
are faster and faster because of Moore’s Law – which is
Alphabet (Google), Microsoft, Amazon and Facebook.
why my smartphone is as powerful as IBM’s Deep Blue, the supercomputer that beat Gary Kasparov 20 years ago at an
Using tech to disrupt
alleged cost of $100m.
How have technology companies become so dominant?
But for the last few years, the technological progress has been properly mind-blowing: only three years ago, Google’s voice recognition engine did not recognise one out of four words. Today, it understands as well as you or I…
40 - info - november / december 2016
The answer is very simple: they have a full understanding of technology, and how technology can be used to change and to disrupt markets.
FOCUS – DI SRUP T OR BE DI SRUP TE D
In some way, this is a familiar story, because there is a very
which we would like to live).
strong parallel between the impact of technology today and of
Going back to the example of my start-up, we could almost
globalisation 30 years ago. With globalisation came offshoring
say 'CAPEX is dead, long live OPEX'. This means that capital, the
and significant cost reduction from moving Western jobs
privilege of large organisations, and one of the main barriers
to lower-wage countries – it changed the way that Western
to entry for smaller competitors, becomes less relevant.
companies conducted their businesses. With technology
Technology enables disruption at a fraction of the cost.
comes automation and significant cost reduction from moving human jobs to computers. But if offshoring was, for the CEO, the equivalent of driving
That is why new challenger banks are being launched in the UK with less money than the investment I had to make in computers 15 years ago. And why, across all industrial sectors,
the carriage faster by giving vitamins to her horse, automation
hundreds of competitors are emerging – some with very
gives her a new, bizarre vehicle with an engine – in other
little resources, but that are able to make incredible, market-
words, something that she is not familiar with, seems very
changing products.
powerful, but can also be very hard to control. That is the main challenge that many CEOs face today. The
In a world where tech is power, the main threat for large organisations does not necessarily come from start-ups, but
business world was a world of horses, where the winners were
from other giants. While we know that it took more than
those with a large stable and professional jockeys. But now,
10 years for the largest money market funds to reach $100bn
some renegades have started to compete with a car – not a big
of assets, who would have guessed that Alibaba would do the
car yet, but enough to be scary – while some big horse owners
same in nine months? And then just a few months more to
are also trying to fix an engine on their carriages.
surpass JP Morgan, the third-largest bank in the world?
Changing the rules
of new entrants – small or big – who have a better grasp of
In other words, the rules of the game have changed. In the old
technology, and can therefore offer more innovative products,
world, the main levers for a CEO were money, people, brand,
but perhaps more importantly benefit from much lower costs.
distribution network, etc. Today, technology has become
Large companies are now therefore facing the threat
And that’s perhaps why the biggest companies in the world
incredibly important, sometimes more than money or people
are tech companies, because their CEOs and boards are fluent
(which of course raises many questions about the society in
in tech, and today, tech is power. I
CASE STUDY: AVIVA DIGITAL GARAGE Digital is crucial to our future success because our customers are using digital
D
igital disruption in insurance is accelerating. New
but, above all, it is how we work there that is enabling our
technology means insurers can introduce new
people to think differently. We disrupt, build fast, test and
products that change the way that people think about
learn to create great digital products for our customers.
insurance. Rapidly emerging trends in the use of data will
This is vital in what we are trying to achieve in becoming a
change not only how they engage with their customers but
digital business.’
also their role in fintech. In order to accelerate the digital transformation of
The Digital Garage also helps Aviva to attract people with different talent and skills: people working in the
our business, Aviva first established a Digital Garage (the
Garage come from all kinds of backgrounds – from gaming
building was once an actual garage) in Hoxton, London
to start-ups, tech and retail as well as insurance.
in 2015. The aim: to develop and explore how to turn
‘They are focusing on creating outstanding customer
innovative ideas into real financial products and services
experiences to help Aviva engage increasingly better with
for Aviva customers. Later that year, Aviva opened a second
customers. A fair amount of what we do is incremental but
Digital Garage in Singapore, and recently a similar space in
we are also working closely with the start-up ecosystem, as
Toronto, Canada.
a way to move our culture and innovation forward rapidly,’
‘Our Garages are like microcosms of our digital activities, where creative minds bring their best ideas and make them happen,’ says Andrew Brem, Chief Digital Officer, Aviva Digital Garage. ‘The physical space of the Garage is designed to help change the way we work. It is the layout of the building
Brem adds. Large businesses are increasingly learning from startups to become more innovative. ‘We are at the beginning of our digital journey and will continue to drive change at pace, for the benefits of our customers,’ he concludes. I JH
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- november / december 2016 - 41
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FOCUS – DI SRUP T OR BE DI SRUP TE D
DISRUPTING REGULATION Geraldine Fabre, Partner and Head of French Group at Sherrards Solicitors, considers how start-ups have become regulatory reformers in the disruption economy
S
ince the last global financial crisis,
Disrupting regulation
For example, Uber fought over 40 legal
start-ups which solely focus
The collaborative economy is not just
battles across the world in 2014.
on sharing services have been
disrupting traditional industry; it is
on the rise. The ever-growing use of smartphones means that people are
disrupting traditional regulation. The rise of those disruptive services,
While in 2015, the EU was paying close attention to the collaborative economy, larger conglomerates are
now able to rent out their apartments,
which are based on ratings and trust,
now acquiring those start-ups and what
cars or even household appliances
require the provision of secured
initially looked like a disruptive new
with just a few taps. However, as is the
platforms for financial transactions.
model will probably end up being mixed
case with most start-ups, this sudden
Generally, it is said that the self-
into existing models and embraced by
rise of popularity has not been without
policing approach has worked well
incumbents. On the regulatory side,
hurdles. Some services have been
so far. However, things can and do
some industries are pointing the way by
under the spotlight for falling foul of
go wrong occasionally and this has
remodelling the definition of consumer
regulations of the industries that they
forced those economies to take steps
protection, and finding ways to reduce
operate in.
to protect themselves and their users
the need for state intervention.
By far, the most prominent sharing
to ‘get around’ the tissue of legislation
As more people participate in
services are those based around money
which was aimed at more traditional
networks of sharing, the cost for this
(Bitcoin), financial services (P2P, or
economies.
may well be the sharing of our personal
peer-to-peer, lending), accommodation
However, regulators are not always
data on networks (such as Facebook)
and cars. Concerns have been raised
impressed. The main issues are that
and to providers that will become more
in relation to tax and whether all the
often those economies appear to
and more concentrated.
Disruptors have been kept busy. Uber fought over40 legal battles across the world in 2014 income received is being declared, as
benefit from unfair competition if
well as general regulatory issues such as
they do not have to abide to the rules
the next decades makes it increasingly
insurance and legal liability.
applicable to traditional market players.
less likely that regulators will be able to
For example, there is the controversy
protect the public effectively. Significant
of development and investment has
created by Airbnb around the world
growth in areas such as robotics,
fallen, allowing smaller firms to enter
with rules taxing tourism, safety rules
virtual reality, nanotechnologies and
the market. In addition, the UK P2P
and requirements limiting zones where
biotechnologies will make it difficult to
lending industry has also benefited from
those short-term accommodations
ascertain a position against the negative
a unique level of government support.
are authorised. Even if it is true that
impacts of the disruptive economies,
The gain in popularity and use of P2P
regulatory development has lagged
and even more than before, the timing
lending and investing services marks
relative to the speed of development
of the regulations will be a primary
a wider divergence from traditional
of the collaborative economy, they
concern for policy makers as well as
banking infrastructure.
have been kept busy with legal battles.
entrepreneurs. I
Over the past 10 years, the cost
The anticipated level of innovation in
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- november / december 2016 - 43
CHANGE IS THE ONLY CONSTANT What does the perpetual cycle of disruption mean for businesses? David Cather, Joaee Chew, Sudeshna Sen and Yann Bonduelle from PWC’s Strategy& unit offer a perspective on how disruption can become an integral part of your strategy ‘Resistance is futile!’ That’s what Star Trek taught us, inspiring
of disruptive start-ups from Lending Club and Funding Circle
the first design of the mobile phone and completely changing
in the loans market; to Nutmeg offering a simple transparent
the way we live. In recent years, what was often science
platform for investors; and services like Transferwise, which
fiction has become commonplace, with terms like ‘disruptive
make transferring money abroad much cheaper.
innovation’ and ‘digital Darwinism’ becoming popular. In this
As a consequence, banks have started to work more
new industrial revolution, solid business models are rapidly
closely with innovative start-ups and incubators, investing in
made obsolete. As once lucrative text messaging becomes
them as corporate venture capitalists, or even buying them
a lost revenue stream for mobile operators because of free
outright. Citigroup has invested in 13 start-ups between
messaging apps, how can companies adapt to the future if
2011 and 2015 while Goldman Sachs backed 10. This is not limited to banking alone: in the hospitality business, for
Double disruption – i.e. disrupting the disruptor – is the new norm of the day
example, AccorHotels acquired OneFineStay, a peer-to-peer
even relatively new technologies can be disrupted?
According to PwC’s Global Data and Analytics Survey 2016, only
Disruption does not have to spell the end for established
accommodation service.
Threat or opportunity? 25 per cent of C-suite leaders and senior executives making
businesses. In fact, it can be turned into an opportunity, like
big strategic decisions feel motivated by the ability to disrupt
Apple did with the iPad, creating a new market category after
their own industry or another industry.
being in the Mac vs PC war for years. However, for companies to define a new market in
CEOs clearly see disruption not just as a threat but also as a source of opportunities. For example, the construction
response to disruption, they need to define a clear vision and
industry, valued at $328bn in France and $190bn in the UK, is
operationalise the strategy, avoiding the strategy-to-execution
full of slow, labour-intensive work, making it a prime target for
gap to which most big organisations fall victim.
disruption.
A start-up, however unique, will succeed only if it focuses
Techniques such as digital fabrication, pioneered by
on making its idea the driving force of everything it does.
Lawrence Sass, Associate Professor of Architecture at MIT,
Similarly, a large company can survive the attack of a disruptive
could herald computer-designed buildings capable of being
newcomer if it is able to reduce the strategy-to-execution gap
3D-printed as a sequence of precision-cut interlocking parts.
and take advantage of being the incumbent.
Adapt or die!
These compact parts can then be delivered at a lower cost and assembled on-site without the need for heavy tools or manual cutting of parts. Why not take this a stage further and
Undisrupted for centuries, today banking is being challenged
take the printer to the building site? 3D printing techniques are
by the start-up world. Antony Jenkins, the erstwhile CEO of
showing promise globally, including a 3D-printed apartment
Barclays, has said that banking today faces an ‘Uber moment’.
building by Chinese developer WinSun.
Banks have historically been profitable due to their easy access to a variety of revenue streams. According to the PwC Global FinTech Survey, two-thirds of
Behrokh Khoshnevis, Professor at University of Southern California, estimates that the time taken to build a customdesigned house could be reduced to 20 hours, while CNET, a
the respondents (mostly bankers) ranked pressure on margins
technology news provider, estimates that labour costs could
as the top FinTech-related threat. Banks face the challenge
be reduced by 50-80 per cent.
44 - info - november / december 2016
FOCUS – DI SRUP T OR BE DI SRUP TE D
Change is the only constant
lorries? Will their reign be short as we all get 3D printers and
Disruption, even double disruption, is nothing new, but the
delivery becomes the download of a design, or will virtual
pace of disruption has incrementally increased.
reality remove the need to physically even possess some
The industrial revolution was made possible because canals disrupted horse-drawn carts. The price of coal in
goods altogether? The only certainty is that, to survive, companies have
Manchester halved when the Bridgewater canal opened
to be able to change, putting disruption at the forefront of
in 1761, making transportation a catalyst to disruption in
their strategy. The rusting infrastructure of banks reminds us
manufacturing. Today, visiting the canals of Manchester,
that what was once the backbone of the new economy has
Liverpool and Birmingham no longer finds industrial cargoes
also been disrupted, and that, given time, all disruptors are
as a mainstay; only holiday makers, ironically seeking an
disrupted themselves.
escape from their working lives. For 20 years, between 1806 and 1826, the average profits
Disrupt in a market where you have the right capabilities, because once you embed disruption in your strategy, you are
of the Bridgewater canal were growing 13 per cent per annum.
signing up for constant re-imagination, constant re-innovation
These fell once the Liverpool and Manchester Railway opened,
and change.
but in a lesson from history, Lord Stafford, the canal-owner, was also a major investor in the railway. The railways that replaced the canals dominated for over
Disruption is not a nice-to-have project. Signing up for disruption in your strategy means you are signing up for change now – and forever. Are you ready? I
a century, but lost out ultimately to lorries. Will drones disrupt
The only certainty is that, to survive, companies have to be able to change, putting disruption at the forefront of their strategy
info
- november / december 2016 - 45
FOCUS – DI SRUP T OR BE DI SRUP TE D
When the disruptors are disrupted Double disruption is the new norm of the day, write Diane Mullenex and Annabelle Richard, Partners at Pinsent Masons
S
ince Clayton Christensen defined the concept of
• Invest in developments. It is expensive, but it could make
disruptive innovation in 1997, it has become a term used
the difference. If one can identify the technology that will truly
frequently in business. Today, it is generally used to refer
be disruptive, such investment will be worthwhile.
to these actors of the digital economy that profoundly change
• Make the most of data. Data is said to be the new black
the market in which they operate, either through technology or
gold. It can be less expensive to collect data than to develop
through an innovative business model or both.
technology, but it does not mean there is no cost. Data will also
For the last 20 years, every sector of the economy has been
be key to the first two points, above.
disrupted. From the tourism industry to the entertainment
A disruptor has achieved its full potential when it becomes
industry including every day activities such as dating, eating,
a market leader. However, as difficult as it may have been to
reading, etc. Interestingly, such disruption often comes from
reach this market leading position, it may be even more difficult
the outside. Players of other industries enter a market to
to stay in that position.
revolutionise it, for example the breakthrough on autonomous cars first came from Google and not by Mercedes or Toyota.
Double disruption Today's disruptors can easily be tomorrow's disrupted. But should we call that phenomenon ‘double disruption’ or simply market evolution and exponential innovation? It is probably a little bit of both. Indeed, there are plenty of examples where industries have been revolutionised more than once. Disruptors should expect to be disrupted and should, more than others, be able to anticipate it. Nevertheless, once a market has been disrupted, all actors will endeavor to seize these new opportunities and compete with the disruptor on its own field. It will involve market evolution and innovation. But one should not confuse evolution and innovation with disruption. If you have not taken the time to read Elon Musk’s Master Plan Part Deux, you should. It is a very good example of a
But what are the keys to disruption?
disruptor that plans to keep its disruptive pace and even plans its own disruption.
• Understanding the market and identifying where
The Tesla-SolarCity combination disturbs many, including
value lies for customers. For that purpose, one should
seasoned investors, in its ambition to disrupt both the
not overestimate the power of technology – the evolution
automotive (and even the transportation industry) as well as
of business models are at least as important (if not more) to
the energy industries.
disruption. • Rethink your business model. Nothing should be taken for
Double disruption is a reality but nothing more than the cycle of economy and life.
granted and one should be ready to question all components
However, on many markets, the period between successive
of your model. All assumptions should be challenged; a
cycles of disruption are getting shorter. The pace of disruption
disruptor sees things from a different perspective. He looks
is following the pace of innovation. No doubt, we will shortly
at other industries and see how they could be borrowed and
have examples of triple or even quadruple disruption. I
adapted to his own. Here lies his strength.
Double disruption is a reality but nothing more than the cycle of economy and life
46 - info - november / december 2016
Brexit
Patent Strategies
Business of Health
Corporate Risk & Reputation
Smart Infrastructure
Connected Manufacturing
Fixing Tech
Freedom to Succeed More than Lawyers. Confident in enabling your business objectives. New technologies and operating models are disrupting and transforming markets. Our Advanced Manufacturing & Technology lawyers across our 21 offices help businesses seize market opportunities. Use the law to achieve the freedom to succeed. Pinsentmasons.com Pinsentmasons.com/freedomtosucceed Diane Mullenex Head of International Telecoms, Gaming & Gambling Diane.Mullenex@pinsentmasons.com French Chamber of Commerce Member © Pinsent Masons LLP 2016.
Frédéric Ichay Partner Frederic.Ichay@pinsentmasons.com French Chamber of Commerce Member
[6723/16]
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EUROSTAR.COM
YVES KLEIN
LIFESTYLE – TATE LIVERPOOL
B
est
known
for
his
signature dazzling purepigment
International
Klein Blue (IKB), this is
Yves Klein’s first solo exhibition at a UK museum in more than 20 years. The French artist’s artwork is being exhibited at the Tate Liverpool, paired with the first UK retrospective by Polish artist Edward Krasinski. One of the most influential figures of the post-war era, Klein’s career was marked by extraordinary creativity and a bold attitude to art and life that was pivotal to later movements – from pop art to performance art and beyond. Around 40 major works by Yves Klein are being exhibited at the Tate Liverpool Gallery, including 12 of his distinctive ultramarine IKB pieces. INFO editor Jason Hesse caught up with
the
exhibition
curator,
Darren Pih, to find out more.
What has made Klein such a respected artist? Yves Klein is really interesting. Born in Nice in 1928, he took the European art world by storm,
embracing painting, sculpture, performance, film and architecture before his untimely death at the age of 34 from a heart attack. He was really only working for seven years, but he breathed life into art following the Second World War. He really set a tone for the future, including pop art and performance art and many other future genres.
What is the story behind Klein’s IKB monochrome paintings?
Untitled Anthropometry, (ANT 52) (1960)
At the age of 19, while lying at the beach in the south of France, Klein ‘claimed’ the sky, which he identified as the perfect representation of infinite, immaterial space. It had no limits. Over the rest of his short life, he produced over 200 IKB canvasses, which expressed absolute freedom and infinite space, free from representation and materiality. They are portals into the unknown. There was a show in 1957 where he presented 11 identical IKB paintings and this was his inauguration of the ‘blue revolution’ as he saw it. In some ways, this exhibition is an homage to that moment.
How did you decide to pair Klein with Krasinski? Krasinski was born in 1925, around the same time as Klein, and they both began exhibiting at the same time. They had parallel careers, and were both concerned with exploring space and challenging and choreographing our experience of art. Both Krasinski and Klein were pioneers of minimal, conceptual and installation art that developed in the 1960s. I Until 5 March 2017 / Open daily 10am to 5.50pm / Full price £10
info
- november / december 2016 - 49
LIFE S T YLE – E XHIBITION S
Compiled by Mwenges yali Syaus wa
©Tate
T H E WH I T WO RT H, M A N CH ES T ER Andy Warhol at the Whitworth Featuring a selection of the 232 works of the late great pop artist’s work, Andy Warhol at the Whitworth explores themes of conflict and destruction, particularly in relation to Warhol’s own brush with death after being near-fatally shot in 1968. Some of his later works, such as Gun (1984), Dollar Sign (1981) and Camouflage (1986) will be on display. As one of the most iconic and widely-replicated artists of the 1960s, Warhol’s distinctive style lends itself well to such a large-scale exhibition, with his frequent collaborations with various muses, such as Edie Sedgwick, Mick Jagger and Debbie Harry, making him pop art’s most noteworthy pioneer. Warhol’s work presents a unique depiction of the American Dream. Whether you are already well acquainted with the artist, or simply curious, this is a Andy Warhol, Skulls (1976) . Acrylic paint and silkscreen on 6 canvases
must-see event. I Until 16 April 2017 / Open Monday to Wednesday from 10am to 5pm, until 9pm on Thursdays / Free admission
VI C TO RI A A N D A L B ERT M USEU M , LO N D O N
How have the finished and unfinished revolutions of the late 1960s changed the way that we live today and think about the future? More than 350 objects are displayed at this major exhibition at the V&A that show the creative, social and legal outputs of revolutionary new ways of living: underground magazines from Oz to the International Times; a shopping list written behind barricades during the 1968 Paris student riots; a rare Apple 1 computer; an Ossie Clark costume for Mick Jagger and the suits worn by John Lennon and George Harrison on the cover of Sgt. Pepper’s Lonely Hearts Club Band among others. You Say You Want A Revolution shows how a whole You Say You Want a Revolution? Records and Rebels 1966 - 70 generation shook off the confines of the past and their parents, radically revolutionising the way that they lived their lives. Music is played through Sennheiser headsets, including interviews with Yoko Ono, Stewart Brand and Twiggy, plus psychedelic light shows and seminal films including Easy Rider and 2001: A Space Odyssey, to create a fully-immersive and dramatic audiovisual experience. I Until 26 February 2017 / Open daily from 10am to 5.45pm, until 10pm on Fridays / £16
ROYA L AC A D E MY O F A RTS, LO N D O N Abstract Expressionism Second World War and the years of free jazz and Beat poetry, a group of artists broke from accepted conventions to unleash a new confidence in painting. Often monumental in scale, their works are at times intense, spontaneous and deeply expressive. At others, they are more contemplative, presenting large fields of colour that border on the sublime. Abstract Expressionism brings together some of the most celebrated art of the 50 - info - november / december 2016
past century, offering the chance
© Estate of David Smith/DACS, London/VAGA, New York 2016
In the ‘age of anxiety’ surrounding the
to
experience
collective
the
impact
powerful
of
Pollock,
Rothko, Still, de Kooning, Newman, Kline, Smith, Guston and Gorky as their works dominate the Royal Academy’s galleries with their scale and vitality. I Until 2 January 2017 / Open Saturday David Smith, Stars Cage (1950). Painted and brushed steel, 114 x 130.2 x 65.4cm
to
Thursday
from
10am to 6pm, until 10pm on Fridays / Full price £19
© Victoria and Albert Museum, London
You Say You Want A Revolution? Records and Rebels 1966-1970
LIFE S T YLE – E XHIBITION S
Compiled by Mwenges yali Syaus wa
© Tate Photography
TAT E M O D ERN, LO N D O N Philippe Parreno: Anywhen
French avant-garde artist Philippe Parreno has transformed the Tate Modern’s Turbine Hall into an immersive experience, challenging visitors’ perception of time and space. Combining aspects of chance and control, the sequences of events – sound, lighting, flying objects and film – are triggered by software that is informed by microorganisms which react to and activate elements of the commission through a bioreactor. Anywhen is a site-specific exhibition that changes throughout the day and that will evolve during the Installation view of Hyundai Commission 2016 : Philippe Pareno, Anywhen 2016 six-month period of the commission. The exhibition is conceived as an automaton which guides the public through a constantly-changing play of moving elements, light configurations and sound environments. I Until 2 April 2017 / Open Sunday to Thursday from 10am to 6pm, Friday to Saturday until 10pm / Free admission
ROYA L O PER A H O USE, LO N D O N Clara, a young girl, creeps downstairs on Christmas Eve to play with her favourite present – a nutcracker. But a mysterious magician, Drosselmeyer, is waiting to sweep her off on a magical adventure. After defeating the Mouse King, the Nutcracker and Clara travel through the Land of Snow to the Kingdom of Sweets, where the Sugar Plum Fairy treats them to an amazing display of dances. Back home, Clara thinks she must have been dreaming – but doesn’t she recognise Drosselmeyer’s nephew?
Pyotr Il’yich Tchaikovsky’s Nutcracker score was commissioned by the director of the Russian Imperial Theatres, following the resounding success of The Sleeping Beauty in 1890. Based on a fairytale by E.T.A. Hoffmann, The Nutcracker was first performed in 1892 in St Petersburg. More than 120 years later, the Royal Ballet celebrates Peter Wright’s 90th birthday with his much-loved production of this beautiful classical ballet. The perfect show to celebrate the festive season. I Until 12 January 2017 / From £6 up to £120.
The Nutcracker. Lauren Cuthbertson as The Sugar Plum Fairy
BA N K O F EN G L A N D M USEU M , LO N D O N Capturing the City: Photography at the Bank of England Viewed from the outside, the Bank of England can appear as a formal establishment. But beyond its austere stone walls lies a hive of activity incorporating a remarkable architectural history representing the dynamism of the institution, a diverse range of occupations and a vibrant social history. The Bank’s archive photography collection provides a fascinating record of the Bank, its buildings and staff since the Victorian era. The exhibition focuses on the past, exploring the history of the photography medium, which has come to dominate the world around us. The display provides an opportunity to see images of the Bank not generally accessible to the public as well as artworks and artefacts not usually on display. I Until March 2017 / Open Monday to Friday from 10am to 5pm / Free admission
© Bank of England
© ROH
The Nutcracker
Dealing Room, 1965
info
- november / december 2016 - 51
NEW FUNDRAISING CAMPAIGN For more information visit: www.institut-francais.org.uk
LIFE S T YLE – BOOK S
THESE BOOKS, RECENTLY PUBLISHED IN ENGLISH, WERE SELECTED BY THE FRENCH INSTITUTE
2084: THE END OF THE WORLD
TRYSTING
by Boualem
by Emmanuelle
Pagano Other Stories Translated by Jennifer Higgins and Sophie Lewis Original title: Nouons-nous (2013)
Sansal Published by Europa Editions Translated by Frank Wynne Original title: 2084: la fin du monde
Published by And
(published in 2015)
A tribute to George Orwell’s 1984 and a cry of protest against
Grains of sand, bridges, shampoo, a bike, board games, yoga,
totalitarianism of all kinds, Sansal’s 2084 tells the story of a
sellotape, birds, balloons, tattoos, wandering hands, tweezers,
near future in which religious extremists have established an
maths, fish, letterboxes, puppets, a vacuum cleaner, a ball of
oppressive caliphate where autonomous thought is forbidden.
string – and love. In this fiction of you’s and me’s, of hims and
In the year 2084, in the kingdom of Abistan – named after the
hers, Pagano choreographs the objects, gestures, places, and
prophet Abi, earthly messenger of the god Yolah – citizens
persons through which love is made real. Xavier Houssin from
submit to a single god, demonstrating their devotion by
Le Monde says: ‘Trysting is an album of destinies. They each have
kneeling in prayer nine times a day. Autonomous thought has
their décor. They talk of first frosts, of the wood that must be
been banned, remembering is forbidden, and an omnipresent
brought in, of the huge rubbish tips of life, of the disorder of
surveillance system instantly informs the authorities of every
houses. Of beds that are no longer made because they are too
deviant act, thought, or idea. The kingdom is blessed and its
often occupied. Of the warmth of being at home and of finding
citizens are happy, filled with a sense of purpose and piety.
oneself. This essential truth of what we are. Emmanuelle Pagano
Those who are not – the heretics – are put to death by stoning
sends every reader back to familiar territory. Her book is full of
or beheading in city squares. But Ati has met people who think
discreet and recognisable emotion.’ Trysting is the winner of the
differently; in ghettos and caves, hidden from the authorities,
English Pen Award. I
exist the last living heretics and free-thinkers of Abistan. Under their influence, Ati begins to doubt. He begins to think. Now, he will have to defend his thoughts with his life. 2084 is the winner of the French Academy Grand Prix. I
BIRD IN A CAGE by Frédéric
BLOOD WEDDING by Pierre
Lemaître
Published by Maclehose
Press Quercus Wynne Original title: Robe de marié (2009)
Dard
Published by Pushkin
Vertigo Bellos Original title: Le monte-charge (1961) Translated by David
Translated by Frank
‘It felt like the slipknot on a rope round my chest was being tightened without pity.’ Trouble is the last thing Albert needs. A gripping standalone psychological thriller about marriage,
Travelling back to his childhood home on Christmas Eve to mourn
manipulation and murder written by the author of Alex. Sophie
his mother’s death, he finds the loneliness and nostalgia of his
is haunted by the things she can’t remember - and visions from
Parisian quartier unbearable… Until, that evening, he encounters a
the past she will never forget. One morning, she wakes to find
beautiful, seemingly innocent woman at a brasserie, and his spirits
that the little boy in her care is dead. She has no memory of what
are lifted. Still, something about the woman disturbs him. Where
happened. And whatever the truth, her side of the story is no
is the father of her child? And what are those two red stains on
match for the evidence piled against her. Her only hiding place
her sleeve? When she invites him back to her apartment, Albert
is in a new identity. A new life, with a man she has met online.
thinks he’s in luck. But a monstrous scene awaits them, and he
But Sophie is not the only one keeping secrets… For fans of Gone
finds himself lured into the darkness against his better judgment.
Girl and Lemaitre’s own internationally bestselling Alex, Blood
Unravelling like a paranoid nightmare, Bird in a Cage melds
Wedding is a compelling psychological thriller with a formidable
existentialist drama with thrilling noir to tell the story of a man
female protagonist. I
trapped in a prison of his own making. I
info
- november / december 2016 - 53
WEEKEND IN...
Edinburgh Our new Travelogue focuses on 'staycations', to offer you details of how to spend a great weekend in the UK
Scotland and France have a very long history together. The two nations first signed the ‘Auld Alliance’, or ‘Vieille Alliance’ in French, in 1295. Within Scotland, Edinburgh is a favoured destination for many, who visit to take in the city’s rich medieval history, to climb Arthur’s Seat (pictured), visit its many museums – or, indeed, to be entertained in its world-famous comedy clubs. How
to get there:
… go for an evening drink:
The quickest way is by air. There are more than 300 flights
• Looking for splendid cocktails in a grandiose venue? The Dome
between London and Edinburgh every week, and tickets start
does it all and is praised by Edinburghers and tourists equally
as low as £20. Average flight time is 1h10min. You can also
• Located in Old Town, The Devil's Advocate is the perfect
drive to Edinburgh fairly easily: from London, it is about a
place for whisky lovers and newbies to Scotland’s national drink.
seven-hour drive, straight up the M1 and M6 motorways However, the most fun way is surely by overnight train, on
… eat a memorable dinner:
the Caledonian Sleeper. With an on-board restaurant and
• At the aptly named Number One (at The Balmoral Hotel).
(relatively) comfortable cabins, you can leave London on Friday
This Michelin-starred restaurant offers Scottish traditional
at 11pm and wake up in Edinburgh at 7am, rested and ready
meals re-invented with a gastronomic twist. But note that
for the weekend. Tickets begin at £35 for a reclinable standard-
advanced booking is required
class seat, or £130 for a bed in first class. (www.sleeper.scot)
• Scran & Scallie offers authentic Scottish food (‘scran’) paired
What
to read on your trip?:
with traditionally-brewed ales in a cosy gastro-pub setting • In the mood for red meat? Steak is Edinburgh’s best pick.
• Arthur Herman’s How the Scots Invented the Modern World.
This dimly-lit, quiet restaurant offers the perfect intimate
This witty and factual non-fiction book takes you on a journey
atmosphere to take a loved one.
through the Scots’ contributions to the world • Set in Edinburgh, Muriel Spark ‘s The Prime of Miss Jean
… catch a show:
Brodie, is a local classic. The internationally acclaimed novel
• End your night by blowing off steam at The Stand Comedy
depicts the rise and fall of an unconventional teacher.
Club, where witty comedians perform seven days a week in
Where to: … have breakfast:
this perfectly laid-back stand-up comedy club.
... bed down for the night:
• The Edinburgh Larder is best for savoury breakfast classics
• Jump on the opportunity to stay in one of Edinburgh’s
in a lovely trendy and luminous venue
landmarks. The aforementioned Balmoral Hotel is an
• Or head to Hamilton’s to start the day in a cosy atmosphere.
outstanding city castle that provides a service as grandiose as
Its hearty Scottish breakfast is revered by locals and is widely
its premises
recognised as the best Scottish breakfast in the city
• Alternatively, The Chester Residence is ideal to feel at
• The Colonnades (at The Signet Library) offers a late brunch
home. These luxurious apartments are ideally located in the
in an historic library-monument.
city’s West End district. I MS
info
- november / december 2016 - 55
LIFE S T YLE – E AT, DR INK , S TAY
La Belle Assiette finds investor to diversify into catering
L
a Belle Assiette has sold a minority stake to Elior Group, a multinational commercial catering and foodservice company. The start-up will use the investment in order to accelerate its growth in the corporate catering market. The valuation and amount of investment are undisclosed. Previously, La Belle Assiette enabled individuals to book their catering needs online. But with the launch of its ‘La Belle Assiette for Business’ product, it has now entered the corporate catering market, offering business customers a tool to shift their entire catering purchasing online, with a centralised access to all the best local caterers. The company currently has a network of more than 700 independent caterers who are signed up to the new service. The catering industry is undergoing a period of disruption, as online platforms challenge traditional models. Estimated at €18bn in Europe alone, the catering industry has previously relied heavily on word of mouth and involves laborious booking processes. By offering an online platform tailored to this market, La Belle Assiette hopes to replicate the success it has achieved in the private chef market, the company said. ‘The relationships between start-ups and large corporations are now essentially to the vitality of tech ecosystems,’ said Stephen Leguillon, CEO of La Belle Assiette. ‘The agreement that we have announced with Elior is great news for our future growth, especially thanks to their incredible expertise in B2B catering services, which we will tap into. It will provide a strong acceleration of our corporate activities.’ I www.labelleassiette.co.uk
PAUL wins four Great Taste Awards
Chivas Regal launches its first blended malt Scotch whisky
Claridge’s appoints first ‘Choreographer in Residence’
P
C
C
for its Pain de Campagne 400g, Pain
of Chivas. Chivas Regal Ultis uses only
Marius
aux Deux Olives 400g, Millefeuille and
five of the company’s most precious
professional ballroom and Latin dancer,
Framboisier
AUL, the French bakery run by entrepreneur Maxime Holder, has
been awarded four Great Taste Awards
patisseries.
hivas Regal, part of Chivas Brothers, has launched the first blended malt
Scotch whisky made from the House
laridge’s,
the
five-star
central-
London Mayfair hotel, has appointed
its first ‘Choreographer in Residence’. Caluser,
an
award-winning
Established
signature single malts from Speyside,
will help couples planning a wedding at
in 1994 by the Guild of Fine Food,
Scotland. From millions of casks in the
Claridge’s with the choreography of their
the awards champion ‘genuine food
Chivas Brothers inventory, less than
first dance. Following an introductory
people who care about the quality of
1 per cent has been hand-selected to
lesson in a private dance studio, guests
food and drink they produce’. Judges
create the new Scotch whisky. ‘This
will be able to conduct a final rehearsal
assess 10,000 entries in a series of blind
is a truly momentous occasion,’ said
in Claridge’s art deco ballroom, to
tastings to decide on the winners. ‘As the
Richard Black, Chivas Regal Global
practice their moves. ‘Claridge’s has
tastings are blind, consumers know that
Brand Director. ‘Chivas Regal Ultis
long been synonymous with hosting
the winners have been honoured for
represents the essence of Chivas Regal
the most glamorous weddings and I
great taste alone, and not on packaging
and is a fitting tribute to our legendary
am thrilled that we are partnering with
or marketing,’ said the company in a
craftsmen of the past, with recognition
such a renowned choreographer,’ said
statement. ‘So you can understand why
of the luxury quality of our Scotch whisky
Mathilde Maitre, Claridge’s Director of
we are so thrilled.’ I www.paul-uk.com
portfolio.’ I www.chivas.com
Events. I www.claridges.co.uk
56 - info - november / december 2016
LIFE S T YLE – CHE E SE & WINE
VACH ERI N MONT D’O R by La Cave à Fromage Food, cheese and mathematics are not
This rich cheese is made
very often associated; but nature has
according to very strict regulations:
always made exceptions that prevail
for example, during the winter
through the centuries.
season,
when
the
cows
are
On average, a cow will eat between
brought down from Alpage and
60 to 80kg of grass in order to produce
into farm buildings, the farmers
40L of milk per day. This, in turn can be
are only allowed to feed them with
used to make 4kg of cheese. Without
hay obtained from summer crops
taking into consideration any human or
(not grass), and it needs to be
other structural costs, you soon realise
naturally kept, not fermented. This
that the ratio of raw material to finished
is to ensure the product's quality.
product does not give a very productive
Circled with spruce and kept
output. This helps to explain the higher
in a wooden box, the soft, runny,
price of artisan foods.
delicate,
Vacherin
Mont
d'Or
Being a seasonal cheese, made only
– a little winter jewel – is best
between 15 August and 31 March of
savoured warmed in its original
every year, Vacherin Mont d’Or reflects
packaging and eaten like fondue.
this very well.
I by Eric Charriaux
E: eric@cheese.biz T: +44 (0)845 108 8222 W: www.la-cave.co.uk
TO BUY YOUR CHEESE, VISIT LA CAVE A FROMAGE SHOPS 24-25 Cromwell Place, 148-150 Portobello Road, Kensington, London SW7 2LD Notting Hill, London W11 2DZ
34-35 Western Road, Hove, Brighton BN3 1AF
J U R AN ÇON by Wine Story A Vacherin Mont d’Or is a creamy and fruity cheese with a strong finish, which I usually enjoy eating on toasted traditional French bread, such as a ‘pain de campagne’. The crispness of the bread complements the soft texture of the cheese. To pair the Vacherin with a wine, we need something that has a minimum of acidity, to match the high fat content and richness of the creamy cheese, but that is also not overly dry or acidic. It requires a good level of fruit and ripeness that will marry the sweetness of the Vacherin – this is an aromatic cheese that requires a wine to match its personality. My ideal wine would be white, such as a dry Jurançon, where the grapes are harvested just before they are over-ripe, producing a fruity but dry white wine. The Cuvée Préciouse (blend of Petit and Gros Manseng and Courbu grapes) from the Domaine de Montesquiou manages to get the right balance between maturity and freshness, between fruity and acidity, to echo the sweetness and richness of the cheese. The Jurançon brings you to the roots of the Pyrenées, but any mountain wine – such as Altesse from Savoie or Chardonnay from the Coteaux du Jura – can be paired with this great cheese. When the Vacherin is a few weeks old and has developed a stronger taste, you can also try it with a red blend of Syrah and Grenache grapes, such as an aromatic Languedoc from the Terrasses du Larzac area, for example. I by Thibault Lavergne TO ORDER MICHELIN-STYLE WINES TO DRINK AT HOME, CONTACT: E: thibault@winestory.co.uk T: +44 (0)7921 770 691 W: www.winestory.co.uk
New
Renault CLIO Seduction never ends
Integrated 7� touchscreen with navigation Automatic climate control Rear parking sensors The official fuel consumption figures in mpg (l/100km) for the New Clio Dynamique S Nav dCi 90 S&S ECO are: Urban 85.6 (3.3); Extra Urban 91.1 (3.1); Combined 88.3 (3.2). The official CO2 emissions are 82g/km. EU Directive Regulation 692/2008 test environment figures. Fuel consumption and CO2 may vary according to driving styles, road conditions and other factors.
at the chamber
T
he French Chamber has had
Bermann, French Ambassador to the UK,
intelligence for Franco-British businesses;
a busy ‘rentrée’ so far, packed
as well as The Rt Hon Edward Llewellyn
our magazine INFO publishes unique
with sold-out events, forum and
OBE, British Ambassador to France, as our
content tailored to your business needs;
club sessions – and this is set to
guests of honour.
and we run a business consultancy and
continue, with two of our biggest events
It has never been more important to
being held in November: the Franco-
highlight the strong links between Britain
British Conference and the Franco-British
and France. Throughout the autumn,
We are able to organise all of this
Business Awards.
we have actively monitored what impact
thanks to the support of the Chamber’s
company set-up service dedicated to French businesses interested in the UK.
The theme of the conference, Disrupt
Brexit is having on Franco-British relations:
Board of Directors, who regularly dedicate
or Be Disrupted, is particularly relevant
we have launched a Brexit Hub on our
their time to helping the Chamber
today. On 21 November, we will welcome
website, are launching a Brexit Forum
remain the largest foreign Chamber of
an incredible line-up of speakers at One
in the new year, and are organising an
Commerce in the UK. With that in mind,
Great George Street who will further
evening with Carolyn Fairbairn, Director
I am delighted to announce that Tanuja
dissect the topic of disruption and explain
General of the CBI, at the French Residence
Randery, Zone President UK and Ireland
why companies cannot afford to sit idly
on 24 January. Who better than the head
at Schneider Electric, has recently joined
and be disrupted by others. Now is the
of Britain’s leading business organisation
the Board. Her expertise will be a valuable
time to act!
to tell us about how the EU Referendum
addition to a Board that could be envied
Some of the best and most innovative
has affected and will impact businesses
by many a CAC 40 firm!
examples of this will also be showcased at
over the long run? I strongly encourage
the Franco-British Business Awards, held
you to attend.
As the year comes to a close, we need to approach 2017 with a renewed vigour
on 30 November at The May Fair Hotel.
Many view the Chamber as primarily
and enthusiasm. I hope that the Chamber
The event, now in its 16th year, celebrates
a way to network with other business
will continue to provide you with the
the accomplishments of French and British
leaders, but we are so much more: the
companies of all sizes, and we will have
events we organise and the information
inspiration you need to make next year a success. I FG
the pleasure to welcome HE Ms Sylvie
we have and give access to provides
info
- november / december 2016 - 59
AT THE CHAMBE R – NE WS
Digital Innovation and Transformation Forum to launch in November
A
s part of its strategy to focus on digital transformation, the
digital and innovation leaders, such as chief digital officers, chief
French Chamber is launching a Digital Transformation &
marketing officers, heads of innovation, heads of strategy at large
Innovation Forum this November. Chaired by Christophe Chazot, Group Head of Innovation at
corporates as well as CEOs in charge of digital transformations. It will also welcome start-ups with know-how in the field.
HSBC and Lucien Boyer, Chief Marketing Officer at Vivendi, the
Its first session will be a brainstorm on 23 November to
new Forum will welcome members on a regular basis to look at
discuss its future agenda, the frequency of sessions, themes,
how innovation and digital themes are changing the way that
speakers and more.
businesses work.
‘Thomas Watson, the President of IBM, said in 1943, “I think
‘Tackling innovation and digital transformation has now
there is a market for maybe five computers.” It is to avoid such
become a question of life or death for most businesses,’ said
bad predictions that we are creating the French Chamber’s
Co-Chair Lucien Boyer, commenting on the creation of the new
Digital Transformation and Innovation Forum,’ added Co-Chair
Forum.
Christophe Chazot.
‘Technology, new platforms and models are literally
This new Digital Transformation & Innovation Forum will
revolutionising the world we’re living in and the way that people
strengthen the existing portfolio of nine Forums and Clubs,
engage with content or consume products and services. It is
which focus on issues and sectors such as human resources,
now time for all stakeholders to embrace this shift, to gain
cross-cultural relations, climate change, finance, start-ups and
agility and drive new revenue streams.’ The Forum is targeting
SMEs and luxury, among others. I
Hats off to... BERTRAND MICHAUD, Director General of Hermès UK, has been made an Officer of France's highest order, the Légion d'honneur. He was decorated at a ceremony hosted by HE Ms Sylvie Bermann, French Ambassador to the UK, in recognition of 'a brilliant career showcasing French excellence across the world'. He was also commended for his engagement with the French community, including in Asia and the Middle East. In the UK, Michaud has become one of the best-known French business leaders: in addition to being an Advisory Councillor of the French Chamber, he is also a Governor of the Lycée Internatinonal Charles de Gaulle. DAME CAROLYN MCCALL DBE, CEO of easyJet and Board Director of the French Chamber, has also been decorated with the Légion d'honneur, as a Knight. She received the honour in recognition of the creation of hundreds of sustainable jobs and for placing France and the UK at the heart of the easyJet European network. 'This honour is the result of Carolyn and her team's efforts, which have resulted in economic and industrial benefits for France and the UK,' said HE Ms Sylvie Bermann. 'It is also for her invaluable support to women, particularly to female pilots, that France honours her today.' MAXIME HOLDER, President of PAUL International and Advisory Councillor of the French Chamber, has also been made a Knight of the Légion d'honneur. His award recognises 'an incredible career which has contributed to the export of French food across the world'. Upon awarding him the honour, HE Ms Sylvie Bermann paid tribute to his commitment to the French community in London. 'You spend a lot of time on economic diplomacy and making yourself available to mentor or guide small and medium-sized businesses that wish to establish themselves in the UK,' she said.
New representatives JUSTIN TAYLOR, Managing Director, is the new main representative for Teads UK, replacing Christophe Parcot. Teads is the inventor of oustream video advertising and the leading native video advertising marketplace. www.teads.tv
60 - info - november / december 2016
LAURENT PILLET, Managing Director, Pernod Ricard UK, has succeeded Denis O’Flynn. Previously, Laurent was Managing Director of Pernod Ricard Sub-Saharan Africa. He is a graduate of Brest Business School and joined Pernod Ricard in 1991. www.pernod-ricard-uk.com
AT THE CHAMBE R – NE W ME MBE R S
PATRON MEMBERS DASSAULT SYSTÈMES UK – 3D design software and product lifecycle management (PLM) solutions
Represented by Stephen Chadwick, Managing Director EuroNorth Dassault Systèmes, The 3DEXPERIENCE Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systèmes' collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings value to over 210,000 customers of all sizes, in all industries, in more than 140 countries. www.3ds.com
MORGAN, LEWIS & BOCKIUS – Legal services Represented by Stephen Walters, Partner
With 29 offices in Europe, the United States, Asia and the Middle East, Morgan Lewis works with a range of clients from established FTSE 100 and Fortune 100 companies, to enterprising start-ups, helping to address and anticipate challenges across vast and rapidly changing landscapes. Morgan Lewis provides comprehensive litigation, corporate, finance, restructuring, employment and benefits, and intellectual property services in all major industries. Founded in 1873, Morgan Lewis encompasses more than 2,000 legal professionals, including lawyers, patent agents, employee benefits advisers, regulatory scientists, and other specialists. www.morganlewis.com
PINSENT MASONS LLP – Law firm
Represented by Diane Helena Mullenex, Partner, Head of the Global Telecom and Gaming Practices Pinsent Masons LLP is an international law firm which specialises in the energy, infrastructure, financial services, real estate and advanced manufacturing and technology sectors. Pinsent Masons LLP has over 400 partners, a total legal team of around 1,500 and more than 2,500 staff. Pinsent Masons was named 'Law Firm of the Year' in 2016 by respected industry magazine Legal Business and 'The most Innovative Law Firm in Europe' 2015 by the Financial Times. The firm has 21 offices across Europe, Asia Pacific and the Middle East. www.pinsentmasons.com
VIVENDI – Integrated media, entertainment and content group Represented by Arnaud de Puyfontaine, Chief Executive Officer
Vivendi is an integrated media and content group operating businesses throughout the media value chain, from talent discovery to the creation, production and distribution of content. Main subsidiaries include: • Universal Music Group, the world leader in recorded music, music publishing and merchandising, with more than 50 labels covering all genres • Canal+ Group, leading pay-TV operator in France, also serving markets in Africa, Poland and Vietnam. Operations include Studiocanal, a leading European player in production, sales and distribution of film and TV series • Vivendi Village, brings together Vivendi Ticketing (ticketing in the UK, the U.S and France), MyBestPro (experts counseling), Watchever (subscription VOD), Radionomy (digital radio) and the Paris-based venue L’Olympia, CanalOlympia venues in Africa and Olympia Production and the Théâtre de l‘Œuvre in Paris • Dailymotion, one of the biggest video content aggregation and distribution platforms in the world • Gameloft, pioneer of mobile gaming that successfully balances market and technological development while always pushing for innovation. www.vivendi.com
info
- november / december 2016 - 61
AT THE CHAMBE R – NE W ME MBE R S
CORPORATE MEMBERS LAGARDÈRE TRAVEL RETAIL HEDIOS
Operating shops in travel retail
Efficient investment solutions:
environments
creator of Gammes H
Represented by Amaury Dehen, Managing Director
Represented by Julien Vautel, CEO
Lagardère Travel Retail is a division of Lagardère, a world-
Hedios is a leading company in efficient investment solutions for
class media group operating in 31 countries with an annual
individuals. A range of investment products called 'Gammes H'
turnover of €7.2bn. The group's expanding presence in travel
was created to provide clients with substantial gains even when
retail includes a major international network of over 4,000
the markets are steady, and to protect capital if the markets fall
stores. In the UK, Lagardère Travel Retail operates duty free,
down to a certain level when the product comes to term.
fashion, specialty and F&B shops in international airports,
It is easily accessible and only requires minimal market knowledge
such as Luton, London City, Belfast, Glasgow, Birmingham and
and time. www.hedios.com
Edinburgh. www.lagardere-tr.com
LLOYDS BANKING GROUP Banking and financial Services Represented by Mathias Quennehen, Europe Business Manager Lloyds Banking Group is a leading UK-based financial services group providing a wide range of banking and financial services, focused on personal and commercial customers. The Group’s main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. The Group operates the UK’s largest retail bank and has a large and diversified customer base. www.lloydsbank.com
ACTIVE MEMBERS Ama Xperteye – Mobile, hands-free video conference
GM Avocats – Law firm – www.gm-avocats.com
solution on smart glasses – www.amaxperteye.com
Represented by Gilles Menguy, Managing Partner
Represented by Marina Suchkova, Key Account Manager Jurisglobal UK – French business law firm Ascential plc – B2B media: exhibition, festivals and
www.jurisglobal.eu
information services – www.ascential.com
Represented by Gaétan Di Martino, Founding and
Represented by Stefan Beurier, Chief Financial Officer
Managing Partner
Carea Distribution – Architectural mineral façade cladding
Pierre Marcolini – Luxury chocolate company
systems manufacturer – www.carea.uk.com
www.marcolini.com
Represented by Vincent Vuillaumie, Group Director
Represented by Vanessa Sélignan, UK B2B Manager
CPI Colour – Print and design company – www.cpicolour.uk
Rathbone Results – Business growth, strategy and
Represented by Simon Reid, Account Director
leadership advisers – www.rathboneresults.com Represented by Cora Lynn Heimer Rathbone, Partner
EMR Home Design – Architectural services and project management – www.emrdesign.co.uk
Verdier & Co – M&A and fundraising advice to corporates
Represented by Emilie Mauran, Director
and entrepreneurs – www.verdierandco.com Represented by Jean-Philippe Verdier, Founding Partner
Eudonet UK – CRM and business web-based software – www.eudoweb.com Represented by Arthur d'Achon, Business Development Manager
62 - info - november / december 2016
Digital Vision for Government We have entered the era of transformation where the pace of technological change is driving citizen expectations of the services Government offers and the way public services are delivered. In this age of digital disruption, Government has the opportunity to champion a new digital vision for Britain. The ‘Digital Vision for Government’ opinion paper highlights the immense opportunities associated with digital transformation and how delivering innovation and productivity can enable the UK to become a global leader in the provision of digital public sector services. Our paper is a collection of thought leadership pieces written by industry experts and technologists from organisations such as techUK, Coadec, the Business Services Association, the New Local Government Network and Policy Exchange.
#DVfGov uk.atos.net/DVfG
FORUMS & CLUBS Brexit: What is next? ECONOMIC UPDATE
The French Chamber's latest Economic Update was held at Home House on 14 October
Dissecting what is next for Brexit was always going to be a challenge, but the two speakers at the French Chamber’s latest Economic Update, held on 14 October at Home House, excelled
E
xpertly chaired by Philippe Chalon,
to clients around the world, they don’t
plan well in advance. Start-ups are agile,
Managing Director of French thinktank
know either,’ he continued.
they can take decisions overnight – all
Le Cercle d’outre-Manche and Director of
Saywell did say, however, that he was
you need is an office and a computer.
External Affairs at International SOS, the
confident that the pound would rally
But when you look at the real economy,
Economic Update offered unique insight
back. ‘Yes, the uncertainty is worrying a
where the jobs are, this is the larger
into how the markets were reacting to
lot of people, but there will be a solution
corporates. These are the businesses that
Brexit – and what the future might look like.
to Brexit, and the pound will rebound.’
are being most threatened by Brexit.’
between Steven Saywell, Global Head of
Business impact
What is next?
FX Strategy at BNP Paribas and François
Yet while the pound will bounce back, can
Large businesses are already planning
Barrault, Chairman and Founder of
businesses be as flexible? Barrault said
how to react, but the uncertainty is
FDB Partners and Chairman of Idate/
that, for now, businesses have pressed
beginning to cause problems.
DigiWorld Institute, was how uncertainty
the ‘pause’ button, and will do this until
‘The problem for markets is that the
is hitting the markets, including the
they find out what the UK Government’s
two results – hard or soft Brexit – give two
British pound, which had hit its lowest
plan of action will be.
very different outcomes. And that makes
At the heart of the discussion,
against the US dollar in 30 years when
‘Whether it’s a “soft” or “hard”
it difficult to plan,’ said Saywell.
Brexit, what businesses need is for the
One of the only certainties today is
‘For a business person, uncertainty
government to set out its position clearly
that businesses want Britain to retain
is bad; but for the markets, uncertainty
and give them a roadmap to follow,’
access to the European markets.
is terrible. It’s like death for markets,’
Barrault explained. ‘Without certainty, we
‘The economic outlook really depends
Saywell told the audience.
don’t know how long this “pause” will last
on whether EU access is maintained or
– the inertia could spill over into months
not,’ Saywell explained. ‘Right now, the
or even years, for larger businesses.”
market is interpreting Theresa May as
the event was held.
The pound had already started to weaken in the run-up to the EU Referendum, he explained, but it took a
This was one of Barrault’s primary
pandering more to the electorate than
hard downward turn due to the current
concerns: what effect Brexit will have on
to business – and, indeed, there was
political uncertainty.
larger corporates, which are the engine
big push back from business, after her
room of the economy.
latest speech, that she needs to listen to
‘At the heart of all this is that we just don’t know what Theresa May is thinking
He explained: ‘For me, the biggest
the voice of business. Britain’s economic
and we don’t know what sort of Brexit we
impact is on large corporations, as they
model is based on access to the EU and
will get – hard or soft. And when I speak
need to take decisions and forward
she needs to maintain that.’ I
64 - info - november / december 2016
FINANCE FORUM
Brexit negotiations need transparency At the start of September, with the Rentrée in full swing, Finance Forum members gathered to discuss the topic of the day – ‘Brexit: Initial Reactions and Challenges’
N
eil Sherlock, Partner and Head of Reputational Strategy at PwC, opened the proceedings
with a presentation looking at different political scenarios ahead of the UK Government invoking Article 50. Having worked as a special advisor to Deputy Prime Minister Nick Clegg between 2012-13, Sherlock offered unique insight into the mechanism of government and how Prime Minister Theresa May might approach forthcoming negotiations. ‘The challenge is not just for politicians, but also for businesses,’ he explained. ‘There is a massive need for businesses to communicate their message to decision makers that, beyond politics, there are fundamental economic interests at stake. There is a danger that, if we cannot make decisions or agree on things, we are sending a message to the wider world that Britain and Europe are not a
passporting rights to open up banking networks across the EU.
great place to do business.’
European corporates use it to open branches in the UK,’ he
For the government, Sherlock added, the key strategy is to plan ahead. ‘The one card that the UK Government holds is
told the forum's attendees. The biggest concern highlighted by the trio was, however,
the triggering of Article 50. Once you play that card, the clock
the uncertainty brought by the vote. Uncertainty is, in the best
starts to tick. So you need to be clear, before you play it, what
case, an annoyance for businesses; in the worst case, lethal.
your plan is.’ This view was echoed in the panel discussion that followed
‘All organisations need to contingency plan, but that becomes very difficult when you do not know which
his presentation. Jenine Hulsmann, Partner at Clifford
contingency is most likely. In finance, banks are looking at the
Chance; Robin Terry, Managing Director and Regional Head of
worse-case scenario [the loss of passporting rights] and then
Global Banking Corporate Sales at HSBC; and Gareth Lloyd-
working backwards,’ he added.
Williams, Managing Director and Head of Corporate Sales at HSBC offered a ground-level view of how Brexit might affect businesses in 2017 and beyond.
Planning is key
Hulsmann therefore highlighted the need for businesses to appeal to government for more transparency. ‘While a lack of transparency may have some benefits for the Brexit negotiations themselves, from a business perspective, all it causes is uncertainty,’ said Hulsmann.
The issue of passporting – a mechanism that allows companies
‘Business leaders must set out to government what you think
to do business right across the 28 member states – is a
is important both for your company and, more broadly, for
major priority, said HSBC’s Terry. ‘Financial institutions use
your sector.’ I
Business leaders must set out to government what you think is important both for your company and, more broadly, for your sector
info
- november / december 2016 - 65
LEGAL FORUM
EU LAW:
Brexit to pose huge challenges
Three months after Britain voted to leave the EU, the Legal Forum met to discuss what the potential legal impact of Brexit will be. At the heart of the discussion, held at the Chamber on 14 September, was the impact on trade and EU law
O
livier Morel, Partner at Cripps and Ken Morrison, Legal
The EU Commission itself has indicated that there will be
Director Eurotunnel Group – the Legal Forum Co-Chairs
no trade agreement reached prior to the UK leaving the EU,
– welcomed Ros Kellaway from Eversheds as the key speaker.
which is not a good position for businesses operating in the UK.
She is a Partner and Head of Eversheds’ EU Competition and
Kellaway does expect, however, that there will be a transitional
Regulatory Group.
agreement to preserve the tariff-free trading status with the EU
Kellaway started her talk by dissecting the procedure for
in the short term.
triggering Article 50, and how Britain’s departure from the EU will affect the British legal system.
‘We need to press the government to obtain at least transitional agreements with regard to trade,’ she said. ‘This is in the interests
EU law
of many of the EU27 as well. If trade
The key question is which elements of EU law will stay – and
between the UK and the EU becomes
which will go. Britain has had 40 years of EU law and most of
subject to substantial tariffs, it will
this came through the European Communities Act (EC Act) and
impact everyone.’
regulations which have had direct effect on UK law. Directives
£12.2bn
french trade surplus with britain
This is primarily due to the unequal
were also implemented via statutory instruments established
trade levels between the UK and the rest
by the EC Act, Kellaway explained. All of this is at risk through
of the EU member states: the UK has a trade
Brexit.
surplus with 18 of the EU27. The largest of these is with
‘If the mother act – the EC Act – is repealed, then the
Germany, which imports £24.9bn more goods and services
statutory instruments fall away too, the UK Court of Appeal
from the UK than it exports to the UK. Therefore, keeping trade
ruled in 2004. This means that every statutory instrument and
free with the UK is in Germany’s and most other EU members’
regulation made under the EC Act will go when we leave, unless
interests.
they are explicitly saved,’ she said.
‘Germany stands to lose a mint of money if we do not have
‘My expectation is that when we see the Act that repeals the
tariff-free trade,’ Kellaway said. ‘Trade is a two-way thing, and
EC Act, we will see huge saving provisions. The UK Government
there is no reason why, in the longer term, the EU cannot
has already started going through the 8-9,000 pieces of
complete a free trade agreement with the UK.’
secondary law to work out what they want to keep.’
Establishing an interim free-trade agreement in the short
Her recommendation for companies doing business in
term, post-Brexit, is hugely important for trade. Without this,
the UK is to begin reviewing which regulations affect them:
trade with the EU could revert to WTO rules, which would be
‘Go through how the WTO schedules will work, the impact on
incredibly onerous for everyone involved (see default trade
tax... every aspect of regulation in relation to your business, to
tariffs, table 1, below).
see what your priorities need to be.’
‘Negotiating a proper free trade agreement is going to take a really long time,’ Kellaway added. ‘But two years – the
Trade deals
period defined in Article 50 when leaving the EU – might be just
On the trade side, the legal impact is complicated. There are,
enough to negotiate an exit agreement so that life can continue
broadly, four models available for the UK: (1) it reaches an
more or less normally, and this will need to retain a tariff-free
interim deal to keep trade flowing freely; (2) it remains an EEA
relationship between all of the current members of the EU in
member; (3) it strikes a free-trade agreement with the EU; or (4)
the interim. This gives us more breathing room to work out a
trade defaults to World Trade Organisation (WTO) terms.
longer-term deal.’ I
EU-WTO trade tariffs
(source: WTO)
Dairy: 45.3% Sugars and confectionary: 25.6%
66 - info - november / december 2016
Beverages and tobacco: 20.8% Clothing: 11.5%
Electrical machinery: 2.4% Fruit and vegetables: 10.4%
CLIMATE CHANGE FORUM
What is the science behind climate change? Is the climate changing, what are the causes of the change, and what does it mean for the UK? These are the questions that the Met Office’s Dr Katy Richardson, an Applied Climate Scientist, answered at a Climate Change Forum held at the Chamber on 27 September
U
sing scientific data and real-world
evidence of anthropogenic, human-
periods of drought, higher intensity
examples,
induced climate change.
rainfall and a rise in sea levels. This could
Richardson
deftly
explained the science behind climate
Turning to the future, Richardson
affect businesses across all sectors –
change and how it is affecting people
explained the two main greenhouse gas
farming, insurance, transportation and
and businesses around the globe.
emissions scenarios published by the
much more.
‘2015 was the warmest year on
Inter-Governmental Panel on Climate
‘Up to the mid-21st century, there is
record for the whole globe,’ she said.
Change. The first scenario shows a
not much difference between the two
‘And the overall trend is that temperature
future where nothing is done to tackle
pathways, but if we continue towards the
is increasing.’
emissions: this would lead to a world
end of the century, they diverge quite a
that is around 4°C warmer than pre-
lot and result in very different climate
El
industrial times by 2100. The second
change impacts,’ Richardson explained.
Niño Southern Oscillation or volcanic
scenario shows what could happen if we
‘What is clear is that the longer we take to
Part of this is influenced by natural climate
variability,
such
as
the
It’s an aim, a goal. There are a number of possible pathways to get there eruptions, but a closer look at historic
manage to heavily reduce emissions –
address emissions, the more severe the
CO2 concentrations in the atmosphere –
and limit the increase in global average
cuts will need to be to limit temperature
temperature to 2°C by 2100.
increases to 2°C.’
the greenhouse effect – shows a large
In either case, there will be an
But, she added, while it is an
spike starting around the industrial
impact on climate. In the UK, projections
ambitious pathway, it is still achievable.
revolution and growing incredibly quickly
forecast hotter, dryer summers and
‘It’s an aim, a goal. There are a number of
since then. This, says Richardson, is
warmer, wetter winters, plus increased
possible pathways to get there.’ I
which are linked to temperature through
info
- november / december 2016 - 67
HR FORUM
Employers must start Brexit planning now
H
aving said that the UK Government
speaker alongside Ben
aims to trigger Article 50 by the end
Wilkins, People and
of March 2017, Theresa May has given
Organisation Partner
businesses in the UK little clarity over
at PwC.
Brexit – but only a little, and possibly not
What is important
enough to satisfy business leaders of
to remember for now,
what the plan actually is.
said Blavo Barna, is
‘All we know, at the moment, is that
that at the moment
the Government plans to trigger Article
the UK is still part of
50 by the end of March. But in relation
the EU, so nothing
to immigration, which has a huge impact
has
for all businesses, the government has
preparation for what
not said anything at all,’ said Koshi Blavo
could come is essential.
Barna, Senior Immigration Consultant at
She said: ‘As employers, we need to
the EU. PwC’s Wilkins echoed her call
ebl miller rosenfalck, speaking at a French
protect the immigration status of our
to begin preparing. ‘We do not know
Chamber’s HR Forum on 4 October. ‘It’s
EU nationals. I would encourage any EU
what the future looks like, so all we can
quite shocking, almost disgraceful, that
nationals who have lived and worked in
do is scenario plan and look at how
no one has said anything with regard to
the UK for five years or longer to make
Brexit will affect your business and your
EU nationals as part of the UK workforce.
an application for permanent residence.’
employees,’ he said.
I do not know when we will get any
For any EU nationals who have
‘Look at the short term through to the
lived in the UK for under five years, she
long term: what actions do employers
assurances.’ The
HR
was
recommends making an application for
need to take? Even if there is not a huge
a certificate of residence. Employers,
amount to say today, just show your
Rambosson, Managing Director, Financial
meanwhile, should consider applying
employees that you, the employer, are
Services
International,
for a sponsor license, just in case this is
thinking about Brexit and the steps you
welcomed Koshi Blavo Barna as a
needed after the UK’s departure from
and they need to take.’ I
chaired
Europe,
DHR
which
But
Stéphane
exceptionally
Forum,
changed.
by
All we know, at the moment, is that the Government plans to trigger Article 50 by the end of March. But in relation to immigration, which has a huge impact for all businesses, the Government has not said anything at all
FORTHCOMING FORUMS & CLUBS
Climate Change Forum
Human Resources Forum
Co-chairs: Richard Brown CBE, former CEO & Chairman of
sponsored by HEC
Eurostar and Jean-Philippe Verdier, Founding Partner, Verdier & Co
Deputy chair: Michael Whitlow, Human Resources Director,
24 November, 10.00am – 12.00 noon
Europe at International SOS
Theme: Smart Cities
7 December, 8.30 - 10.00am
Speaker: Michael Dodd, Head of Section, Markets and Policy
Theme: People Analytics
Development, DNV GL
Speaker: Philippe Gaud, Associate Professor, HEC Paris and Claire Gannon, Director, People Analytics and Metrics, Schneider Electric
All sessions take place at the French Chamber. For more information, please contact Ophélie Martinel at omartinel@ccfgb.co.uk or 0207 092 6634
68 - info - november / december 2016
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internationalsos.com
EVENT HIGHLIGHTS 6 SEP T EM B ER | D Î N E R D E S C H E F S AT B E L M O N D L E M A N O I R AUX Q UAT ’S A I S O N S
A luxury country dinner
H
eld at Belmond Le Manoir aux Quat’Saisons, the latest Dîner des Chefs was held in the private dining room, packed with guests who were driven to the Manoir in new Renault Kadjar cars to enjoy an evening of Michelin-star food, starting with a Perrier-Jouët Champagne reception and Caviar Petrossian tasting. Raymond Blanc OBE welcomed guests to the four-course gastronomic dinner, which was accompanied by prestigious wines from Crus Classés de Graves, Martell Cognac ‘deconstructed’ cocktails and macarons from Pierre Hermé Paris.
14 SEP T EM B ER | R E N D E Z -VO U S C H E Z ... L E V I E UX C O M P T O I R
Regional France in London
D
elicious French charcuteries, French cheeses and French wines: the Rendez-vous chez Le Vieux Comptoir on 14 September was a tongue-tingling success. Held in the cosy and intimate atmosphere of Le Vieux Comptoir, owner Laurent Faure welcomed French Chamber members, who enjoyed a taste of regional France.
5 O C TO B ER | C O C K TA I L R E C E P T I O N AT M A I S O N A S S O U L I N E
Cocktails and fine books galore
H
osted by Prosper Assouline, co-founder of Assouline Publishing with Martine Assouline, the cocktail reception provided 80 Patron and Luxury Club guests with the opportunity to discover this three-floor temple dedicated to the act of reading. Perrier-Jouët Champagne and cocktails expertly made by Pernod Ricard mixologists welcomed guests upon arrival.
13 O C TO B ER | R E N D E Z -VO U S C H E Z ... T H E R E M B R A N D T
Historic surroundings
B
uilt in 1911 as apartments for Harrods, The Rembrandt – now a fourstar hotel – welcomed French Chamber members for a ‘Rendez-vous chez’ on 13 October to enjoy an evening of canapés and wines in its newlyrefurbished conservatory. I
70 - info - november / december 2016
Trade Delegation to Liverpool
LIVERPOOL:
Open to business
Members of the French Chamber took part in a trade delegation to Liverpool on 15 September, to discover the business opportunities available in the north-western city
HE Ms Sylvie Bermann, French Ambassador to the UK (centre), led a delegation of London-based Franco-British business leaders
T
he French Ambassador to the UK, HE Ms Sylvie Bermann,
Liverpool and France run deep.
and the Deputy President of the French Chamber,
From then, it was a non-stop day for the participants, which
Stephen Burgin, who is also Vice President Europe, GE
began with a visit to Liverpool Vision's offices to hear about
Power Strategic Accounts, led the delegation of 17 London-
investment opportunities. It is clear why Liverpool is attractive
based Franco-British business leaders. The Lord Mayor of
to businesses: over the period 2016-2018, the city's annual
Liverpool, Councillor Roz Gladden welcomed the delegation at
growth in production is expected to be 1.9 per cent. The UK
Liverpool Town Hall. Participants included representatives from
Government is also investing heavily in the city's growth,
ENGIE, JCDecaux, Veolia and Eptica.
providing £30m per year for the next 30 years to develop the
Speaking in the Grand State Room, HE Ms Sylvie Bermann,
Mersey River area and its Superport and the HS2 high-speed rail
who had visited Liverpool before, thanked the Lord Mayor for
link. The delegation then visited the UK's largest regeneration
her welcome. ‘I love this city, so this time I thought I should bring
project, Mersey Waters, to meet local business leaders from
some business leaders to see if there is a possibility to foster our
companies such as Peel Group and Mersey Maritime.
relationship further,’ she said. ‘There are a lot of opportunities
After lunch, participants were whisked to one of Europe's
here, and maybe this city is not as well known as it should be. It
leading innovation districts, Liverpool's Knowledge Quarter
is my pleasure to lead this delegation today.’
to meet its CEO Colin Sinclair, and then toured the Liverpool
The Lord Mayor added that the city was truly open for
School of Tropical Medicine's state-of-the-art facilities.
business: ‘You’re going to be impressed with Liverpool,’ she
Finally, guests visited The Beatles Story and were treated
said. ‘The city and its people are very welcoming, so any attempt
to a private viewing of the Francis Bacon exhibition at the Tate
to bring us closer together in terms of business or friendship
Liverpool, led by Francesco Manacorda, Artistic Director of
is welcomed by all of us. It is not a coincidence that Liverpool
the gallery. The day was certainly busy, but the delegation unanimously
voted by nearly 60 per cent to remain in the EU.’ While at the Town Hall, the Franco-British group was also
agreed that, by all accounts, the visit was a success, underpinned
delighted to learn that the great-grandfather of one of their
by the city’s welcoming nature and the diversity of opportunities.
fellow delegates, Wilfrid Petrie, CEO of ENGIE UK & Ireland,
A special thank you goes to PwC and Swinton Insurance, who
had been the Mayor of Liverpool at the end of the 19 century.
sponsored the trade delegation, as well as to Liverpool Vision
Perhaps this was an auspicious sign that connections between
and Liverpool City Region, for helping to organise the visit. I
th
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- november / december 2016 - 71
Breakfast with Estelle Brachlianoff
Sponsored by:
BREAKFAST WITH:
Estelle Brachlianoff What has been Veolia’s journey into the circular economy? This was the theme of the French Chamber’s ‘Breakfast with Estelle Brachlianoff’, held on 20 October
T
he event, held at the Berkeley Hotel, a Chamber Member, with
breakfast kindly provided by PAUL, gave 80 attendees the opportunity to spend the morning with Estelle Brachlianoff – Senior Vice-President Veolia UK and Ireland and President of the French Chamber – and hear the story of how she became an industry leader. And what a story it is. Veolia is now a titan of UK industry, employing 14,000 people and turning over £2bn per year. At the heart of the company’s success has been its openness to change and its ability to act boldly. ‘It’s my great belief that fortune favours the brave,’ Brachlianoff explained. ‘This is the quintessence of our journey.’ While Veolia could be described as a waste, water and energy company, in actual fact what the company does
Money isn’t the end game. Business can and should be a force for good
is resource efficiency and circular economy. And this, she said, is relevant
thought the world was flat, but we’re
to one of the biggest challenges that
discovering that it’s actually round.
and our cities,’ she said. ‘We have
society faces today: climate change.
That’s what’s happening with the circular
transformed the business, closing
economy today.’
more loops every week, month and
‘People think of global warming as something that is probably happening, that will probably affect our children, and is probably more of an issue in
Materials recovery By way of example, Estelle Brachlianoff
‘We’re literally mining our streets
year. We’re on a journey.’ This journey gives Brachlianoff a sense of purpose for Veolia. The
developing countries than in the UK.
held up a small glass phial containing
company operates 350 sites across
But it is already happening, right here
a very small specimen of the precious
the UK, working closely with each local
and right now, in the UK, and something
metal palladium, which is used in
community and investing heavily in
needs to be done,’ Brachlianoff said.
jewellery and microelectronics. Palladium
infrastructure that creates jobs. She
is used in catalytic converters, to treat
believes her business can do its job
of the solution by promoting more
the gases emitted by vehicles. As cars
and be a positive force for society at the
efficient use of resources and the
and trucks, drive around London, tiny
same time.
circular economy.
particles of palladium are being emitted.
The good news is that Veolia is part
The company believes the sector
Until a few years ago, Veolia would
‘It was a shock for the team when I told them that the business isn’t about
can help the UK to cut up to 10 per cent
sweep the streets and all of the dust
of CO2 emissions through its innovative
and detritus would go straight to landfill.
solutions. By ‘mining’ waste, Veolia is
But the company has now developed
our shareholders, but money fuels the
able to recover materials that can be re-
a process where 90 per cent of what
engine – not the direction of travel,’ she
used, re-purposed or become a source
is collected is either composted or
said. ‘It’s all about the impact we make.
of energy.
recycled, such as the palladium. How
Business can and should be a force
much is the small phial worth? £2,000.
for good’. I
‘This is a Galileo moment: we all 72 - info - november / december 2016
making money. 'Of course we must earn money for
RYDER CUP 2018:
Coming to France Nearly 100 members of the French Chamber gathered at the French Residence on 20 September to celebrate France’s winning bid to host the Ryder Cup in 2018
T
he competition, which will be held at Le Golf National Albatros
It was an overwhelming majority.
As part of our bid, we’ve proposed to
Of course, to fund the bid and
build compact courses, to give people
Course in Saint-Quentin-en-Yvelines,
the event, this would cost money. But
more access to the game. The event will
is a first for France and marks an
members were also supportive. We
also boost French tourism, showcasing
important milestone for French – and
suggested an increase in license fees of
France as a golfing destination – not just
European – golf. Patron members of the
€3 per member (i.e. €49 per year) and
for fine wines and culture.
French Chamber were welcomed to a
this also passed by a resolution of 81
champagne reception by HE Ms Sylvie
per cent. People are excited.
Following its loss in October, can the
Bermann, French Ambassador to the UK,
European team regain the Ryder Cup
and heard from Pascal Grizot, Chairman
What did it mean to you to win the
in 2018?
of Ryder Cup France 2018; David
event?
Of course! It would be fantastic, and
Williams, Chairman of PGA European
Winning the Ryder Cup was the
we have high expectations. I also hope
Tour; Ryder Cup player Thomas Levet;
culmination of three years of hard work,
that we will have a French player on the
and Antoine Arnault, Chairman of Loro
so we were really proud. But we also
team in 2018, as it always gives you an
Piana, the official supplier of clothing to
know it is a huge responsibility. The
advantage to play in your own country.
the European Ryder Cup Team.
Ryder Cup has only been played once
Having a French champion would also
on the continent, in Spain. And now
boost the game’s profile in France, like
to hear more about why this is so
France will host it in 2018. We have great
when Yannick Noah won the French
important for France.
expectations for the event.
Open at Roland Garros in 1983 – it
INFO sat down with Pascal Grizot
We believe that this is a wonderful
transformed the sport in France. We can
How eager was the French Golf
opportunity to develop the game in
Federation to host the Ryder Cup?
France. It is no secret that golf has
When we asked our general assembly to
been an elitist sport for many years,
The 2018 Ryder Cup will take place at
vote on hosting the event, 93 per cent
with too many people saying it is too
Le Golf National near Paris from 25-30
said they wanted France to put in a bid.
time consuming and too expensive.
September 2018.
do the same with golf. I
Top (L-R): Ryder Cup Europe MD Richard Hills, Ryder Cup France 2018 Chairman Pascal Grizot, French Ambassador HE Ms Sylvie Bermann, Ryder Cup Player Thomas Levet, PGA European Tour Chairman David Williams and French Chamber MD Florence Gomez Left: Antoine Arnault, Chairman of Loro Piana
info
- november / december 2016 - 73
LUXURY DINNER 2016
A celebration of luxury
C
hanel, Hermès, Lalique, Piaget... these are just some of the
‘The very low British pound has made London one of the
luxury brands that hosted tables at the French Chamber’s
best places to purchase luxury goods today, and most luxury
annual Luxury Dinner. Indeed, more than 110 people, including
brands have done incredibly well over the summer,’ she said,
HE Ms Sylvie Bermann, French Ambassador to the UK, attended
adding that luxury companies will continue to be at home in
the black-tie event at Claridge’s on 17 October, in celebration of
the UK. 'London is the place where the world's wealthy come
the booming Franco-British luxury industry.
to meet, and they are confident in the future. This is absolutely
Guests were welcomed by a Laurent Perrier Champagne
essential for the city's long-term success.'
reception before being ushered into Claridge’s spectacular art
The notion of using luxury to achieve success was further
deco ballroom, which had been hand-decorated by experiential
echoed by guest speaker, Viscount Linley, the Honorary
agency Profirst with more than 3,000 golden butterflies and
Chairman Europe, Middle East, Russia and India of Christie’s
bespoke ‘cloche’ flower arrangements.
and Founder of LINLEY.
The gourmet dinner, prepared by Claridge’s award-winning
Viscount Linley, who is HM Queen Elizabeth II’s nephew, was
chefs, was accompanied by fine wines from Les Crus Classés
interviewed on stage by Bertrand Michaud, Managing Director
de Graves, and petits fours were later provided in the form of
of Hermès UK and Chair of the French Chamber’s Luxury Club.
macarons from Pierre Hermé Paris.
Together, the pair discussed the role of artisanal craft and what
The mood of the night was festive, but Brexit remained a
the future is for hand-made luxury goods. Both said they were
topic of conversation for many, as Florence Gomez, Managing
certain that luxury will always have a place in making people
Director of the French Chamber, alluded to in her opening
dream and feel good.
speech: ‘While I was welcoming you earlier, the topic on everyone’s lips was, of course, how Brexit will affect us all.’
Throughout the evening, attendees were also treated to a performance by The Jette Parker Young Artists Programme
While, like other industries, most luxury businesses did not
from the Royal Opera House, as well as by a demonstration by
anticipate Brexit, the summer months have been an inopinate
cellist Thomas Carroll, who played a duet against a top-of-the-
success for the sector, as the collapse of the British pound drew
range speaker by Devialet. The evening was then capped off
tourists to London, boosting luxury spending.
with a Glenmorangie tasting, to everyone's delight. I
74 - info - november / december 2016
CHAMBE R HAPPE NINGS – FORTHCOMING E VE NT S
In partnership with
21
November 8.30 - 17.00
FRANCO-BRITISH CONFERENCE 2016: DISRUPT OR BE DISRUPTED At One Great George Street, London SW1P 3AA £120+VAT per person for members £190+VAT for non-members Government representatives: The RT Hon Matthew Hancock MP, Minister of State for Digital and Culture Axelle Lemaire, French Secretary of State for Digital Affairs and Innovation Keynote speakers: Sébastien Bazin, Chairman and CEO of AccorHotels Arnaud de Puyfontaine, CEO of Vivendi
Monday 21 November, 8.30am - 5pm One Great George Street, London SW1P 3AA
Few places left!
Panelists include: Yann Bonduelle, UK Consulting Data Analytics Leader, PwC Philip Chalmers, Senior Vice President Public Sector & Health, ATOS Christophe Chazot, Group Head of Innovation, HSBC Stéphane Guinet, Founder and Managing Partner of Kamet Ventures, InsurTech startup studio created in January 2016 and funded by AXA Group Diane Mullenex, Avocat à la Cour, Partner, Head of the Global Telecoms Practice, Pinsent Masons LLP Christophe Tcheng, VP Product Technology & Strategy, American Express Global Business Travel
Plus case studies with founders and CEOs of disruptive start-ups: Jonathan Chippindale, CEO of Holition Augmented Retail Frédérique Grigolato, Co-Founder and CEO of Clic and Walk (French Tech – Lille) Chris Sheldrick, Co-Founder and CEO of what3words And influencers and academics such as Huy Nguyen Trieu, CEO of The Disruptive Group, Professor Davide Sola, Associate Professor - Strategy & Management of ESCP Europe and Professor Mark Kennedy, Associate Professor of Imperial College. For the full line-up of speakers and to book: www.FrancoBritishConference.co.uk For more information, contact Sonia Olsen at solsen@ccfgb.co.uk or 0207 092 6642 Supporting sponsor:
Main sponsors
23
November
RENDEZ-VOUS CHEZ MAISON CORTHAY At Maison Corthay, 24A Motcomb Street, London SW1X 9EX £20+VAT per person
Few places left!
18.00 - 20.00
Join us to discover the savoir-faire of Maison Corthay, luxury shoe maker founded by Pierre Corthay. Pierre is the only men’s shoe-maker to have been awarded the title of ‘Maitre d’Art’ (Master of Art), a distinction given by the French Ministry of Culture. Come and surround yourself with vibrant colours and exquisitely-finished products for a luxury evening of networking. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643
info
- november / december 2016 - 75
CHAMBE R HAPPE NINGS – FORTHCOMING E VE NT S
THE FRANCO-BRITISH BUSINESS AWARDS 2016 At The May Fair Hotel, Stratton Street, London W1J 8LT £110+VAT per person or £1,000+VAT for a table of 10 for members November £160+VAT per person for non-members 19.00 - 22.30 Champagne partner: Vranken Pommery Wine partners: Le Conseil des Vins du Médoc and Les Vins de Pessac-Léognan Dress code: Black tie
30
AWARDS CEREMONY & DINNER
The winners of the Franco-British Business Awards 2016 edition will be announced on Wednesday 30 November during a ceremony in the presence of HE Ms Sylvie Bermann, French Ambassador to the UK and The Rt Hon Edward Llewellyn OBE, British Ambassador to France. This fantastic evening includes a Vranken Pommery Champagne reception followed by a three-course dinner, complemented by French Wines from Le Conseil des Vins du Médoc and Les Vins de Pessac-Léognan.
The nominees are: Large Corporate Award: EDF Energy and Schneider Electric Start-up & SME Award: Devialet, Sponsorise.me and Theodo The French Chamber Award: This award is for a member company that has significantly contributed to the French Chamber over the past year, through its commitment and participation. Coup de Cœur Creative France – Business France: This award is for one of the shortlisted companies, either a start-up or large corporate, that is the most creative. www.FrancoBritishBusinessAwards.co.uk To book a table or places please contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 020 7092 663 Main sponsors
6
December 18.30 - 20.30
Supporting sponsors:
CROSS-CULTURAL EVENING DEBATE At the French Residence, 11 Kensington Palace Gardens, W8 4QP £40+VAT per person; £70+VAT - Special price for two Guest speakers: The Right Honourable Dominic Grieve QC MP and Yann Bonduelle, Partner and UK Consulting Data Analytics Leader, PwC Moderator: Peter Alfandary, Senior-Vice President of the French Chamber Both speakers will present their insights on best practices relating to working in crosscultural environments. The event will be followed by a Q&A session and a cocktail reception, allowing ample opportunity to network. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643
76 - info - november / december 2016
CHAMBE R HAPPE NINGS – FORTHCOMING E VE NT S
8
December 18.30 - 21.00
BUSINESS CLUB COCKTAIL WITH JACQUES SEGUELA At the Hyatt Regency London, 30 Portman Square, London, W1H 7BH £30+VAT per person; £50+VAT – Special price for two Guest speaker: Jacques Séguéla, Adviser, Founder and Consultant of HAVAS Advertising Theme: Global advertising in the 21st Century
Jacques Séguéla, France’s undisputed king of advertising, started his career as a pharmacist, before becoming a Paris Match reporter, the driver of the first round-the-world trip in a French car and the editorin-chief of popular daily France Soir at only 30. Switching to advertising aged 35, Jacques co-formed Roux Séguéla, creating groundbreaking slogans for presidents Valéry Giscard d'Estaing, François Mitterrand and Jacques Chirac and famous campaigns for the likes of Club Med ('the best idea since the invention of happiness') and Louis Vuitton ('the spirit of travels'). Séguéla’s reach went international with RSCG, which merged with Eurocom to create EURO RSCG (now Havas Worldwide London), the number one French and European agency. Since Havas was acquired by Vincent Bolloré, Jacques Séguéla has remained as VP, Global Creativity. At 81, he likes to say that 'old age begins when regrets overcome dreams'. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643
14
December 12.00 - 14.30
ANNUAL FINANCIAL LUNCH – 20 TH ANNIVERSARY At The Four Seasons Hotel Park Lane, Hamilton Place, Mayfair, London W1J 7DR £100 + VAT per person, £1,140 + VAT for a table of 12 Guest speaker: The Rt Hon The Lord Darling of Roulanish Theme: The City of London’s position following the EU referendum and the potential post-Brexit scenarios The Rt Hon The Lord Darling of Roulanish was a Member of Parliament from 1987 until 2015, most recently for Edinburgh South West. He served as Chancellor of the Exchequer from 2007 to 2010, playing a central role in tackling the economic crisis that hit Britain after the crash of 2008, including overseeing the nationalisation of the Royal Bank of Scotland and Lloyds Banking Group. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643
9
January
THE NUTCRACKER At the Royal Opera House, Bow Street, London, WC2E 9DD By invitation only
From 19.30
The Royal Ballet celebrates Peter Wright’s 90th birthday with his much-loved production of this beautiful classical ballet, danced to Tchaikovsky’s magnificent score. Organised for Patron Members' main representatives For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643
10
January
RENDEZ-VOUS CHEZ PAUL TO CELEBRATE LA GALETTE DES ROIS! At Tower 42, 25 Old Broad St, London EC2N 1HQ £25+VAT per person
18.00 - 20.00
For its second edition, we are delighted to announce that our Galette des Rois will take place at the PAUL UK Restaurant on 10 January. Come and join us to leave 2016 behind and celebrate the new year together! For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643
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- november / december 2016 - 77
11
January
COCKTAIL RECEPTION AT HOME HOUSE 20 Portman Square London, W1H 6LW Free of charge
18.30 - 21.00
We are delighted to announce the launch of our first dedicated event for Corporate members. This evening reception will be held in the magnificent surroundings of Home House and will give members an occasion to network and celebrate 2017 together. For Corporate members' main representatives For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643
19
January 17.30 - 20.30
AMBASSADOR'S BRIEF At the French Residence, 11 Kensington Palace Gardens, Kensington, London W8 4QP Hosted by HE Ms Sylvie Bermann, French Ambassador to the UK Free of charge The French Chamber is pleased to announce the first Ambassador's Brief of 2017 with HE Ms Sylvie Bermann, French Ambassador to the United Kingdom. Open to Patron & Corporate members, as well as the Chamber's Advisory Councillors For more information, contact Sonia Olsen at solsen@ccfgb.co.uk on 020 7092 6641
24
January
EVENING WITH CAROLYN FAIRBAIRN, CBI DIRECTOR-GENERAL At the French Residence, 11 Kensington Palace Gardens, Kensington, London W8 4QP £40+VAT per person; £60+VAT – Special price for two
18.30 - 20.30
The French Chamber will host an evening with Carolyn Fairbairn, Director-General of the CBI, who will share the CBI’s perspectives on Brexit, its impact on businesses and will answer your questions on the UK's future economic outlook. Carolyn joined the CBI in 2015 following a 30 year career in British business. She spent her early career at McKinsey before taking on a range of senior leadership roles in the media industry. She has also held nonexecutive plc board positions spanning the manufacturing, services and banking sectors. From 1995-97, Carolyn was a member of the Number 10 Policy Unit, where she advised on health and social services. She began her career as an economist at the World Bank, before joining the Economist magazine as a business and financial journalist. Carolyn holds a first-class degree in Economics from Cambridge University, an MBA with distinction from INSEAD, and MA in International Relations from the University of Pennsylvania. She is an honorary fellow of Gonville and Caius College, Cambridge. To book your place, please contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643
26
January 18.00 - 21.00
SEMINAR AT BRYAN CAVE At Bryan Cave, 88 Wood St, London EC2V 7AJ Free of charge Theme: Will French contract law soon govern international business transactions?
Bryan Cave and the French Chamber are pleased to invite you to join what promises to be a very interesting and topical debate on 26 January. It will be followed by a cocktail reception where you will have the opportunity to network with new business contacts. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643 78 - info - november / december 2016
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ŠPhoto credits: Pascal le DoarÊ and COSEA photo libraries
CONSTRUCTING A SUSTAINABLE FUTURE At VINCI Construction Grands Projets, we engineer digital solutions that help us and our Clients in the conception and construction of our major projects. On SEA Tours-Bordeaux high speed rail line (302 km and 38 km of connecting track), we developed a bespoke information system allowing sharing of processes and data between all partners (80 design offices, 5 sub-consortiums, 3,500 employees) that offers the most reliable performance. We introduced an Electronic Document Management System (EDMS) and a Geographical Information System (GIS) whose 3D interface fostered collaboration with clients and stakeholders. This real Asset Information Management (AIM) is being transferred to the dedicated company for the maintenance of the project over 45 years.
In the UK, we are currently placing our BIM expertise at the core of infrastructure projects such as Tideway East and the M4 Corridor around Newport, with the aim of providing enhanced collaboration and efficiency. By EXCELLENCE, we mean designing and building quicker, safer and at best value. www.vinci-construction-projects.com/british-isles
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DIGITAL FINANCE THAT EMPOWERS YOUR BUSINESS Econocom designs, finances and oversees companies’ digital transformation. We provide bespoke finance solutions and associated services to help firms acquire the latest digital technology and become more agile. www.econocom.co.uk