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Programmes  Loyalty So much more than giving away points

Data Recovery  Agile Moving into the realm of mission critical Intelligence Strategy  Business Remain focused on business goals vs In Sourcing  Out Trust innovation to the experts Security Threats  Endpoint Monitor employees’ activity Tips  Survival Managers take note Tyre Waste  Recycling Seizing all the financial benefits

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Building a Successful

BI Strategy Any BI initiative should have certain goals. These include helping the organisation to achieve its strategic, tactical, and operational goals. BI should also help to boost business performance, by empowering all decision makers, including staff, customers, and thirdparty parties to be able to play their roles effectively as a result of the BI implementation.

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his is according to Rick Parry, CEO of Yellowfin South Africa, who adds that before embarking on a BI journey, a BI strategy that aligns with the business goals is needed. “This strategy must drive knowledge management by making the best possible use of data, and ensure that BI is entrenched in the business processes, to aid the enterprise with strategic, tactical, and operational decision-making.” Discussing how to build a BI strategy that brings together the various elements that drive business operations, Parry says people, processes, and technology are key. “To build a successful BI strategy, organisations need to grasp the factors that bear most influence on BI. More often than not, BI implementations fail because there is no transformation from insight to action, and because of this, the potential of BI is not realised.”

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It is a major challenge to design and implement a successful BI strategy, as a combination of the best technologies, processes and people is needed.


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He says for many years now, BI has been on top of the CIO’s agenda. “We all know how BI can have a significant impact on business performance and efficiency, and can vastly improve a company’s ability to make better, information-driven business decisions at every level, from operations to strategy. However, organisations who are embarking on a BI journey but don’t know how go about it are not unusual. It is a major challenge to design and implement a successful BI strategy, as a combination of the best technologies, processes and people is needed.”

To build a successful BI strategy, organisations need to grasp the factors that bear most influence on BI. This is why any BI strategy must be driven by the business objectives, as this will empower stakeholders to make better decisions, to help the organisation realise its goals, he adds. “An alignment of business objectives, strategy, investments and BI is crucial. Companies who can do this become intelligent entities.” Parry says this requires an informed approach that draws from multiple resources to deliver a complete, consistent and reliable source of data to get the most from BI. “BI is less than useless if it is not driven by the enterprise objectives. Any BI implementation should help to advance business by harnessing the business information in a way that achieves actionable intelligence. “This may sound simple, but this goal is not often attained. Business objectives and requirements must drive the initiative, and a strategy needs to be established before bringing technology into the equation.” To do this, he says it is vital to understand the factors that influence BI, and design a solid BI strategy around them. “This will include working with all stakeholders to document all the business objectives. All stakeholders will have different objectives, so these need to be listed and prioritised to formulate an effective BI vision, and to ensure that the organisation builds its BI strategy with a solid foundation.” Parry adds that BI has a wide range of benefits, and businesses need to decide what they are looking for from their BI initiatives. “Ultimately it is about making the best possible use of the business data for operational and strategic requirements. Any BI strategy aims to help the organisation with long-term planning and resource management. It boosts tactical reporting, and helps with the day to day decisions that are needed to streamline operations and run a business successfully. At the end of the day, BI is about giving the business the information it needs to think ahead and operate effectively. It needs to give employees the information they need to do their jobs at peak effectiveness.”

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out VS

inSourcing

by Saurabh Kumar, Managing Director at In 2ITTechnologies South Africa

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trust innovation

to the experts


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It’s that time of year again where key decision makers get together to scrutinise every aspect of their business model. As they prepare to execute on strategies for the next quarter they’ll be looking at how their service delivery models may need to adapt to meet the ever-changing business needs and customer requirements.

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hile the topic of outsourcing versus insourcing has been the fuel for much debate, it’s time to recognise both methods of IT service provisioning for what they really are: the enabling force that drives business change, growth and development. Both outsourcing and insourcing have their respective benefits, and neither is superior to the other, except to the degree that it helps the business meet strategic goals and business objectives. A change in thinking is necessary Even though we have seen the emergence of bi-modal IT systems where the traditional approach to enterprise technology (one that emphasises efficiency, stability, accuracy and scalability) can coexist with a second approach that focuses on agility, speed and innovation, we’re still nevertheless fixed on thinking that the benefits are to the extent that outsourcing the ‘house-keeping’ component of IT will cut costs and free up resources so that innovation can be addressed in-house. Essentially multi-sourcing can provide an organisation with the freedom to focus on developing new products, applications and solutions, which is undoubtedly important in today’s highly competitive business environment. Being first to market is a significant differentiator, however, that doesn’t mean it’s best to keep this process in-house, as outsourcing the innovation might prove to be a smart move after all. It’s not about superiority, it’s about suitability Because there are many driving factors that might influence a company’s decision to outsource an asset or a service, arguing over which mode of delivery is better detracts from valuable time and effort that should be invested in innovation to engage with the business and its needs. At the end of the day, the debate shouldn’t be over which is better, but rather which is more suited to business needs, which are as unique as each organisation. Until recently, companies were generally inclined to look beyond their own IT departments in a number of scenarios - the first would be where the organisation would like to cut costs and have a competitive edge. In this situation significant business changes are taking place and the company needs to look for short-term experts to address these changing needs and they would insource that function and keep it in-house, while outsourcing the day-to-day IT activities.

The second scenario typically involves an organisation that has been around for a few decades with long-standing systems and policies already in place. By choosing a few key IT professionals to align with business, the rest of the work would be outsourced to a specialist service provider - tasks like managing infrastructure, applications and the like. This will enable the chosen key IT professionals to get on with the business of innovating. Given that technology is changing faster than ever before, the issue of whether to outsource the business transformation aspects of IT delivery becomes more and more relevant. The best justification for outsourcing is that a company might not have the availability of all the skills needed, or they might want to replicate something that has already been done elsewhere and then it becomes simply a matter of finding the right outsourcing partner for the job to take advantage of the many benefits of outsourcing. There is general consensus that the perks of outsourcing can be expressed as a cost-benefit. This is because it’s the outsourcing of a service that is already performed for other customers, which is where the scale and commercial advantage comes in. Companies get to make use of case studies and learn from the mistakes or successes in different usages, and get assistance in determining whether international IT trends have local relevance. There’s also the critical benefit of access to skills, which can be difficult to hire and retain internally. Most importantly, by outsourcing the innovative aspects to a specialist, an organisation can speed up their get-tomarket strategies, by looking at automation possibilities for large-scale innovation projects. In the same vein, smaller organisations can handover to outsourcing companies and in the process become more agile and responsive to market needs. In conclusion, regardless of whether an organisation chooses to outsource, insource or multisource, it’s important to bear in mind the goals and objectives of the business. While cost-cutting can be a benefit, it’s critical that this is not the sole deciding factor. Organisations need to choose whichever mode of IT delivery that will help them to deliver a more seamless customer experience once they’ve won that customer over with their first-to-market innovative products and solutions.

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5 top

recommendations

for Agile

Data Recovery

by Johan Scheepers, SE Director MESAT for CommVault in South Africa

Remaining competitive in a fast-paced, global marketplace is increasingly challenging for many organisations, and the need for agility with regard to products, services and even underlying IT infrastructure has become apparent.

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emaining competitive in a fast-paced, global marketplace is increasingly challenging for many organisations, and the need for agility with regard to products, services and even underlying IT infrastructure has become apparent. The cloud offers organisations numerous benefits for any application, including on-demand scalability, reduced capital investment and ready access from anywhere, anytime. This has made it an attractive option for organisations looking to augment their data storage and deal with the vast content explosion of the past several years. However, while migrating data storage into the cloud can be beneficial, the focus for many organisations is on getting the data into the cloud and not necessarily on ensuring that data can be easily recovered in the event of a disaster. In addition, a large number of organisations make use of a combination of on-premise private data centres and cloud-based third-party solutions, creating a hybrid environment that adds further complexity to data recovery initiatives. Disaster recovery is critical as it is basically an organisation’s insurance policy against the loss of information. Traditionally, simply having a single local backup of data was sufficient, however in today’s world where organisations need to grapple with vast volumes of information generated in real time from a variety of different directions, including the cloud, mobile platforms, social media, business to business transactions and more. This means that the complexity of data backup has become significant, and organisations need to look at a more flexible approach of implementing effective data protection strategy. The challenge here is that many organisations treat all information equally – from the canteen lunch menu to the CEO’s confidential emails – and there is no discrimination between different levels of importance

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and value. While organisations have embraced the evolution of the cloud, this has not delivered the ability to accurately categorise information, and in order to become more agile enterprises need to prioritise important information and declassify the less useful data. While this seems to be an insurmountable task, the answer lies in developing a greater understanding of the business and what is critical to function, important for continuity, and essential for everyday operations. Agile data recovery ultimately stems from knowing more about information, including where, when and how it is created, stored and accessed, and the value of that information at every point in its lifecycle. It is a move away from the traditional strategy of simply storing everything, toward a more intelligent approach where data is protected according to its business value. Fundamentally, agile data recovery means understanding the behavioural characteristics of how information is used, in order to ensure it can be protected and secured more effectively. Commvault recommends the top five ways to ensure agile data protection and recovery across cloud, onpremise and hybrid storage platforms and architectures.

1 Automate the recovery process from end-to-

end. Human error is the major issue with manual interventions, and it can be costly to organisations. Automation effectively removes human error, which is one of the leading causes of data loss. Automating data protection and recovery removes this risk element.


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2 The data backup and recovery solution

must be integrated across the entire IT environment. Given the complexity of the current data storage landscape, integration of data protection and recovery tools is essential. Without integration, organisations are often faced with multiple toolsets, each with their own reporting, analysis and infrastructure to connect. When it comes to managing complicated environments with multiple tools, the complexity increases exponentially. Integration enables simplicity, providing a single platform for the management of data protection, recovery, compliance, search, eDiscovery and more.

3 The entire environment must be managed via a single platform. This stems from the need for integration and improved simplicity. A single platform will help to create visibility across data whether it resides on mobile, in the cloud, or within an organisation’s private data centre. A single toolset and management platform spanning the entire information landscape is essential for enhanced management and visibility.

4 A variety of technologies must be available for moving data off-site. Data is created in a vast variety of different ways today, and information now flows in an omni-directional way both from and to organisations. Organisations no longer have complete control over the migration of information, and IT practitioners need put into place secure processes and technologies to manage this flow by policy and the importance of data before it leaves the organisation. Trusted services and platforms are necessary to handle this migration in a secure manner.

5 The solution must be vendor agnostic. Or as vendor agnostic as possible in today’s world. The reality is that there is no such thing as a completely vendor agnostic solution, however data recovery needs to be able to work with a variety of different storage solutions in order to deliver the necessary levels of agility. The fewer solutions or platforms required to manage data the better.

Within data recovery, as with other aspects of technology, the key to agility lies in the cloud. However, simply migrating data to a cloud storage platform does not automatically provide agility. Organisations need to simplify their data management environment by classifying data according to importance, automating the data recovery process, and ensuring solutions can cover the entire environment, including cloud, on premise and hybrid solutions. Data protection and data recovery are critical elements of business continuity and sustainability, and solutions employed must keep pace with changing demands and IT environments in order to deliver accurate risk mitigation.

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external threats by Richard Broeke at Securicom

have turned the endpoint into a security blind spot With all the attention on protecting company networks and data against threats from the net, the endpoint is becoming the new security blind spot. Companies need to pay closer attention to the security status of the endpoints in their ecosystem and watch what their employees are doing on their computers warns Securicom, a managed IT security vendor in South Africa.

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he focus is now on newer and what are considered the more ‘important’ threats, like those that can impact the network, so endpoint security isn’t being watched. In a lot of companies, there is nobody checking how these endpoints behave when they connect to wifi, or controlling what sort of peripheral devices are being plugged into them, and if these are secure. “The assumption is that with the basics like antivirus and the like are installed, the endpoint is secure. But, when was the last time anyone checked if the software is configured correctly; or if changes have been made that make the system vulnerable? “When endpoint security isn’t managed, companies have no idea how critical and sensitive business information is accessed, shared and manipulated on disparate computers across the organisation. Companies seem to have lost sight of the fact that every unwatched endpoint is a gateway for a host of security threats,” says Richard Broeke, an IT security specialist at Securicom. There are a few endpoint security essentials that companies should have to protect assets and information from abuse by employees, malware and other risks. Effective technologies should be in place to protect and monitor assets within the IT ecosystem, and the information that is stored on them. For instance every endpoint should have its own firewall to protect it against threats that don’t originate from the internet, such as those spread via email or infected discs. A desktop firewall will also stop unsolicited outbound traffic from infected computers, which could lead to infections and security breaches in other computers and external programmes. There should be controls in place to prevent employees from copying sensitive information onto moveable devices. If they are authorised to store or move sensitive data on a

portable device or memory stick, restrictions should be in place to protect information with encryption. Companies should also be able to get a view of the entire ecosystem, and the security status of each and every endpoint. Instead of purchasing and maintaining various point solutions, Broeke says companies should rather consider a centrally managed, cloud based system. “You don’t want to end up buying various point systems to tackle each issue or office separately. Appliance based security is more difficult to manage, especially if updates and configurations need to be done on individual systems,” says Broeke. With an effective, centrally managed endpoint security solution, security updates can be routinely applied, and authentication and access rules can be enforced. It also offers the ability to limit or prevent the use of peripheral devices on company computers, as well as implement mechanisms to control which applications and business information certain levels of employees are permitted to access. When rules are broken, company resources are abused, or security on a device is outdated, the administrator is alerted and can take action to remedy to problem. A centrally managed endpoint security system also assists with the effective, efficient and safe onboarding and decommissioning of company assets. According to Broeke, managed, cloud based security services, contrary to common perception, typically have a lower cost of ownership and ensure that IT security costs are predictable. Notably, this brings a holistic set of best-of-breed technologies within the reach of more modest budgets. He concludes saying that companies need to think beyond antivirus and perimeter security if they want to stop the endpoint from becoming a security blind spot. “A network firewall and unmanaged antivirus software are just not going to cut it.”

Companies seem to have lost sight of the fact that every unwatched endpoint is a gateway for a host of security threats

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SA loyalty

programmes missing a trick With 26% of economically active South Africans using customer loyalty programmes more than they were a year ago, our burgeoning appetite is clearly still on the rise. But are SA brands adequately differentiating their loyalty programmes to stand out in a highly competitive marketplace?

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hile it’s estimated SA has more than 100 programmes on offer, the majority of these still lack focus in execution, communication and differentiation – leading to non-engagement. 33% of consumers don’t use loyalty These undeniable gaps in current offerings present massive opportunities for brands wanting to take their loyalty programmes to the next level. This is according to the 2016 Truth Loyalty Whitepaper, a comprehensive snapshot of the current state of loyalty in SA. Perhaps not surprisingly then, one-third of the economically active respondents surveyed do not use loyalty programmes at all. This represents a considerable, untapped pool of consumers that brands should be eyeing with interest. Data is gold – mine it properly Loyalty programmes enable brands to gather immense insights about customer behaviours, attitudes and preferences and brands that properly analyse customer data to understand how customer insights can drive their business strategy will undoubtedly have the upper hand. But launching a programme for the sake of doing so, or without a long-term strategic investment with the customer at the centre of your business strategy is a waste of time and money. Therefore, a loyalty programme alone does not create customer loyalty. However, when used to gather

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customer data, combined with powerful data analysis and innovative engagement strategies, it can become the key differentiating factor. Brands need to explore customer wants and needs and understand the many factors that influence loyalty programme usage. Only then will they capture their customers’ attention and build a long-lasting relationship with them beyond a once-off marketing campaign. “Business owners need to take into account how factors such as age, income and gender influence how they should be building their loyalty strategies. There are still countless exciting opportunities in the loyalty space and if harnessed correctly, can enable key differentiation in a competitive marketplace,” says Amanda Cromhout, CEO of Truth. Income critical to loyalty programme usage According to a US study conducted in 2014 by Blackhawk Engagement Solutions Inc., income is the biggest influencer of customer loyalty – even more than age, gender or geography. This trend is mirrored in South Africa. The highest users of programmes are customers who earn between R50,000 and R100,000 per month at 78%, indicating they use loyalty programmes the same or more compared to the previous year. Interestingly however, the Truth Whitepaper reveals that as the salary increases the loyalty “non-usage” goes up from 14% (in the R50,000 – R100,000 bracket) to 21% (in the R100,000 + bracket) and reversely for the lower income groups, “non-usage” increases from 24% (in the R20,000 – R50,000 bracket) to 39% (in the under R20,000 bracket). Cromhout explains, “The research shows that as salaries increase to over R100,000 per month, customers potentially don’t see any more value from loyalty programmes. Reversely, the lower income groups may not see enough benefit in participating in programmes as most of those offered in SA are based on a “spend and get” principle. With retail rewards as little as 1% of spend, your lower income customers simply


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won’t see any material benefits quickly enough.” This kind of data is vital to tailoring programmes that count. For top-earners, brands have an ideal opportunity to create “money-can’t-buy” experiential rewards; meanwhile for lower income earners, brands should be looking for ways to enable faster points accumulation through activity that rewards customer activity beyond just transactional behaviour. It’s not just about spend South Africa appears to be slow in adopting strategies that reward non-transactional behaviour within loyalty

programmes and Cromhout believes this may be due to a misconception that the process is too resource-intensive. With a desperate need for differentiation within many SA programmes, rewarding for activities other than spend could be the answer for brands looking to innovate and potentially engage new customers. “SA brands need to give customers the chance to earn points in different ways by going beyond just earning for transactional behaviour. Globally, this has taken off but SA is still behind the curve. By rewarding customers for social media engagement, for updating their details, referring a friend or making bond repayments on time – brands have a great opportunity to get innovative and add some fun to their

With retail rewards as little as 1% of spend, your lower income customers simply won’t see any material benefits quickly enough. loyalty programme,” says Cromhout.

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Survival

Man gers tips for

by Mark Orpen, Chief Executive Officer and Chairman of the Institute of People Development (IPD)

A global survey of more than 1 300 CEOs revealed that the availability of key skills is the second-biggest threat to business growth, close behind the increasing tax burden. A report issued in Business Day showed that this comes as South Africa’s government cuts mandatory grants, or reimbursements, that are paid back to companies that engage in sector education and training from 50 percent of the one percent payroll levy, to 20 percent. With this pressure, the question arises; should we be investing in skills development and management training?

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ahatma Ghandi is quoted as saying; “Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning.” When people realise their own potential, and the potential of the employees they manage, real growth begins to take place. Through skills development and management training, a company’s performance is exponentially and holistically enhanced. According to Jack Welch; “An organisation’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” Experience has shown that through effective skills development, employee commitment and responsibility are promoted. Each individual’s confidence, morale and motivation increases as managers become more skilled in reducing work environment demotivators, and people management efficiency improves. In addition to building the organisation’s overall performance, staff turnover usually reduces and the working environment is made more productive, efficient and effective. All while communication channels are improved between all levels in the organisation, a commitment to quality all round, and the desired organisation culture emerges. Unfortunately for many workplaces, this ideology remains a myth, enshrined in the pages of a management textbook, merely to inspire and create hope.

An organisation’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage. However, in skilling the workforce and reducing staff turnover, the knowledge base grows and an institutional memory is created, enabling it to make better, more strategic decisions, and achieve a greater understanding of the company’s objectives. By engaging in new and innovative people management strategies, companies often enjoy improved financial efficiencies, empowering them to compete successfully in a rocky, constantly changing economy. The challenge to employ and develop highly skilled people, proficient managers, foster high performance and create healthy margins is constantly rising and for businesses to not only survive, but also compete in even the toughest of economies, this ideology will have to become their reality. While this may be tough love in the midst of turmoil; in all development initiatives, it is essential to remember that we are ultimately skilling the Nation for the Nation; that which benefits the organisation also benefits the country and the economy.

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Spotlight

Waste Evolves by Samantha Barnes

into a

Money-spinner “A real New Yorker likes the sound of a garbage truck in the morning,” said American writer RL Stine. So it seems do South Africans. We throw away most of the stuff we consume.

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SPOTLIGHT

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et a load of this: South Africa generates almost 110 million tons of waste a year. Smart people at the Environmental Change Institute at the University of Oxford tell us that 1 million tons of landfill waste is enough to generate 1 MW of electricity for 10 years. There is a glimmer of hope, albeit it small. An organisation with a wordy title, Recycling and Economic Development Initiative of South Africa, and better known as REDISA, has created over 3 000 jobs in two years. It is supporting 200 small, medium and microenterprises (SMMEs). These opportunities stem from tyre waste that was previously thrown away. Compare this positive turnaround today with 2012 when only 4% of tyres were being recycled. A Model That Works REDISA is financed through a fee paid to it by tyre manufacturers or importers. They pay R2.30 for every kilogram of new tyres manufactured in South Africa or imported. REDISA is a registered public–private organisation which was granted a licence in 2012. Just two years later, REDISA collected 32% of the tyre waste generated. By 2017, REDISA aims to collect the entire waste stream. Convincing the Market It took much persuasion before the market grasped what REDISA aimed to achieve. “Changing paradigms always poses a challenge,” says Hermann Erdmann, CEO of REDISA. “The concept is very new to all stakeholders, namely the public, government and the private sector. Current paradigms around linear economies and ways of thinking are deeply rooted in both public and private sectors.” Going against the grain, REDISA, in collaboration with the Department of Environmental Affairs, has successfully implemented a circular economy within the tyre industry. “There are benefits not only for the country, but also for businesses,” says Erdmann. “REDISA will drive the resource evolution by profiling the benefit of circular economies in other industries.” Team Effort REDISA’s impressive track record is the result of concerted efforts by its staff. “We need to push boundaries together. In the corporate world, it is ‘them and us’, but, at REDISA, there is no ‘them and us’, it’s just us,” Erdmann explains. “As a CEO, I know that my success is dependent on all of our team members at different levels – I can’t collect all the tyres. I need the team of transporters and collectors and I need their willingness and commitment in order to achieve what we are doing.” Transforming Lives Johanna Baleng is among those people employed by the small businesses created through the initiative. She manages the REDISA depot in Mossel Bay. Baleng also manages the drop-off of collected

Hermann Erdmann, CEO of REDISA

waste tyres and sees that they are sent to recyclers for processing. Her life is much easier these days. She is a role model and is involved with community-upliftment projects. Stanley Mangoegape manages the Midrand REDISA depot. When he met the REDISA team in 2013, he was very ill and had no medical aid. “Working with REDISA has changed my circumstances and given me a new lease on life. They gave me an opportunity when no one else would,” he says. In terms of the depot operator mentorship initiative, “a suitable candidate is selected and mentored by a REDISA employee who has a number of years’ experience working within the tyre industry,” says Stacey Davidson, REDISA director. “REDISA is proud of the mentorship programme and we are especially proud of Stanley, who is a vital part of our team.” Get a Handle on Waste According to REDISA, approximately 44% of South African households don’t have access to waste-collection services. REDISA has drawn up a plan to manage general waste in South Africa’s underserviced regions and is tabling this with relevant government departments. Increase in Gross Domestic Product (GDP) Linked to Circular Economy REDISA was a key contributor to, and participant in, this year’s Ellen MacArthur Foundation, the McKinsey Center for Business and Environment, and SUN (Stiftungsfonds für Umweltökonomie und Nachhaltigkeit) circular economy ‘Growth Within’ report compilation. “Although the report looked at the European economy, there are learnings which South Africa should note. According to the report, the benefits of introducing a circulareconomy approach in Europe include an 11% increase in GDP, compared with 4% in the current development path by 2030,” Erdmann points out. With high unemployment a concern, many South Africans are discouraged. If findings are to be believed, we can take heart from the economic potential inherent in circular economies. Sources: @Liberty, the policy bulletin of the IRR; www.eci.ox.ac.uk

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