Leaders’
Plantaže
Plantaže – Planetary Giant PAGE /28
Digital Transformation
MEETING POINT BRANKO STEVANOVIĆ Plant Manager, Modine Commercial and Industrial Solutions
Current Digital Products For Transformation The World’s Trends Markets PAGE /32
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Digital business
Technology Trends To Watch Out For In 2018 PAGE /37
Entrepreneurship
The Craziest Plan That Worked PAGE /40
PLANTAŽE
Plantaže – Planetary Giant Company Plantaže, after 55 years of an uninterrupted alliance with the sparse and rocky earth of the Ćemovo Field, today boasts the largest vineyard in Europe, with 11 million grapevines, exports to 40 countries, numerous prizes and awards, enviable turnover volumes, and Vranac, one of the world’s best wines
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e have been at the very top and among the best for a long time – not only in Montenegro, but also further afield. Our capital is estimated at almost 100 million euros; we invest in development, in our vision and in competing on the international market. This is the beginning of the story of one of this region’s most popular wine brands, which managed to conquer even the world’s most demanding markets, primarily thanks to its renowned Vranac wine, and to win numerous awards for quality in Ljubljana,
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Brussels, London and many other cities. Plantaže is today a modern winery with 2,300 hectares of vineyards and modern production cellars, including the impressive Šipčanik Cellar. More than 350 metres long and submerged 30 metres underground, this cellar provides ideal natural conditions for two million litres of Vranac, Krstač, Vranac Pro Corde, Luča, Vladika, Crnogorska Malvazija (Montenegrin Malvasia) and other top wines. Today, 55 years after the first Plantaže vineyard was planted, it can only be celebrated. And there are indeed many reasons for celebrations.
One of them is Plantaže’s new threemillion-euro bottling line, with a capacity of 10,000 bottles per hour, which was ceremoniously launched into operation on the eve of the anniversary by Montenegrin Prime Minister Duško Marković. He stated at the time that the Government of Montenegro would focus in particular on the areas in which the country has comparative advantages - tourism, energy and the production of food and beverages. – Plantaže has spent more than half a century improving production capacities, increasing production levels and conquering new markets, and has thus also strengthened Montenegro. The standardised quality wines produced in our vineyards and cellars find their way onto tables in more than 40 countries,” said PM Marković, before emphasising that investments in production capacities should secure dynamic growth for the Montenegrin economy. Testifying to Plantaže’s contribution in this regard is the fact that the company has generated in excess of €350 million in turnover and €30 million in profits over the last ten years. – Plantaže is today a world giant. We are particularly proud of the fact that we have survived all social turbulence and systemic transformations, and that we’ve invested more than 40 million euros in development projects over the last ten years,” said Plantaže Executive Director Verica Maraš, speaking at
the ceremonial academy held during celebrations marking the 55th anniversary. She also emphasised that this company is unique and Montenegro’s most famous brand. Montenegrin President Milo Đukanović also agrees that there can be no success without vision. – Plantaže isn’t just one of the biggest exporters, but also a company that sets new standards and increasingly links its
autochthonous varieties like vranac and krstač,” said Mićunović, who was among the numerous guests from all over the world to enjoy the rich musical programme that followed the official part of the celebration. That same evening, at the heart of the Ćemovo Field vineyard, Goran Bregovic gave a concert for violin and symphony orchestra. On a spectacular stage above the vines,
form his hits Bella Ciao, Ederlezi, Mesečina and Kalašnjikov, which brought to their feet guests from China, India, Switzerland, the U.S., Canada and the countries of the region, mostly Serbia and B-H. - I saw that unseen wonder, that vineyard of the Ćemovo Field, the perfect ambience for a musical spectacle,” - said Bregović, who gave the hosts an artistic picture authored by Ana Petrović, which was thematically
production to science and research. In addition to that, over the course of the past 55 years it has also provided a significant contribution to the development of wine culture,” said Đukanović. Also speaking at the ceremonial academy was Montenegrin Ambassador to Serbia Branislav Mićunović, who said that Plantaže is an international brand. - You found 63 varieties unknown to the winegrowing profession. By preserving a thousand-year-old tradition, you nurture
with multi-coloured led lighting effects, in front of more than 3,500 visitors, Bregović presented his new project “Three Letters from Sarajevo”. The concert began with the “Jewish Letter” and the performance of young violinist Bojana Jovanović, next the “Muslim Letter” was opened by Tunisian violinist Zied Zouari, while the “Christian Letter” was performed by violinist Mirjana Nešković, all to the masterful direction of conductor Ognjan Radivojević. Bregović also used this occasion to per-
inspired by vineyards, while from them he received the wine that won the first gold medal at London’s Decanter. - The combining of the largest vineyard in Europe and Europe’s greatest composer was a great hit in both business and artistic terms, a spectacular event worthy of attention in world circles,” said Plantaže Sales & Marketing Director Veselin Đurišić, thanking Bregović and promising new business moves with which this company will continue to conquer the world.
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People “I will not sign anything, instead we will go before the people. No one should be afraid of autocracy and decision-making without the support of the people” – ALEKSANDAR VUČIĆ, PRESIDENT OF SERBIA
LOCAL NEWS AMCHAM
GENERALI SERBIA
On a panel organised by AmCham with Dragana Marković, Director of the Tax Administration, the participants discussed transparency and predictability in interpretation of tax regulations, risk analysis, efficiency and the direction of Tax Administration reform, and the fight against the grey economy. „The predictability of tax regulations and their consistent application are absolute priorities for members of the American Chamber of Commerce in Serbia (AmCham) when deciding on new investment”, said Jelena Pavlović, President of the American Chamber of Commerce. “We appreciate the willingness of the Tax Administration to engage in a dialogue with taxpayers in finding the most effective solutions. AmCham is at the disposal of the Tax Administration and other institutions to make the business environment more attractive “, said Slavko Carić, President of the AmCham Committee on Finance and Tax.
Clients who purchase travel insurance can from 1 June contact a duty assistance centre free of charge via the mobile application Generali Serbia available in the App and the Google Play Store. There are two options available: chat and call. Only a WiFi network is required for free communication with an assisting office. “Generali Insurance Serbia is a company that keeps the client in the centre of its business. The cost of a roaming call can sometimes be higher than the cost of the client’s intervention during the stay abroad. Therefore we have created options for free calls and chats when registering travel insurance damages while staying abroad”, said Vladimir Milosavljevic, Director of the Residents Directorate. Generali Insurance Serbia has a leading role in the insurance market when it comes to innovation in the sphere of digitization.
RESULTS OF COMBATTING GREY ECONOMY ARE ENCOURAGING
SHERATON
HOTEL OPENS IN NOVI SAD The first Sheraton hotel in Serbia was officially opened at the ceremony attended by Prime Minister Ana Brnabić, President of the Provincial Government of Vojvodina Igor Mirović, Mayor of Novi Sad Miloš Vučević, MK Group President Miodrag Kostić as well as numerous officials and prominent figures. With the opening of the Sheraton, the city of Novi Sad got the first international hotel brand and the best possible hotel offer for business guests and numerous tourists. “It is my great pleasure to have the opportunity to attend the opening of this hotel. This is another very important for Novi Sad, all its citizens, all guests and all those who are still planning to visit Novi Sad., “said Serbian Prime Minister Ana Brnabić.
FRONERI
NEW ICE CREAM FACTORY IN STARA PAZOVA The factory “Froneri Adriatic” opened in Stara Pazova new factory, invested €20 million and employs 400 people. The factory was opened by the Agriculture Minister Branislav Nedimovic, Deputy Prime Minister of the Provincial Council Djordje Milicevic, Mayor of Stara Pazova Djordje Radinovic, and Director of the Frantry Company Ibrahim Najaf, who agreed that this plant is a symbol of the development of the Serbian food industry. Nedimović pointed out that the technology he saw at the Fronerie industrial plant is exactly what Serbia wants to implement at any time in every factory in the country. “We have hired 200 new people, invested €20 million and invested 95 percent of what we produce at the factory in 24 European countries,” said “Froneri” leader Ibrahim Najafi. Stara Pazova’s mayor Djordje Radinovic pointed out that the Forneri factory is an example of good cooperation between the state and the local self-government. “Froneri” was founded in 2016 by merging Nestle and R & D as a result of joint ventures in ice food and cold dairy products.
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PRESENTING NOVELTY ON THE DOMESTIC INSURANCE MARKET
SSCC
CONFIDENCE ON THE RISE AMONG SWISS INVESTORS In a period of just one year, the number of surveyed companies from the Swiss-Serbian business community that have a positive view of the business environment in Serbia has increased by 26% The Swiss-Serbian Chamber of Commerce (SSCC) conducted its 4th consecutive “Survey of the Business Climate in Serbia” for 2018, within the framework of the Swiss-Serbian business community during April and May this year. The purpose of the survey was to glean more detailed information on the perception of companies within SSCC regarding conditions for doing business on the domestic market, as well as their expectations and the challenges they face. Majo Mićović, Chairman of the Board of Directors of SSCC and CEO of company Sky Express d.o.o., confirmed that most of the surveyed companies assessed the business climate in Serbia as being satisfactory. Specifically, the number of companies that have a positive opinion of the domestic business environment has increased over a period of just one year: to 90 per cent in 2018, compared to 64 per cent in 2017. Most of the companies estimated that conditions for doing business in Serbia remain unchanged in 2018 compared to 2017. Among all companies surveyed, 42 per cent expect the business climate in Serbia to be better in 2018 compared to the previous year, while 58 per cent of surveyed companies consider that this climate will remain the same as it was in 2017. The results of this survey also show that most surveyed companies expect changes to the business climate in the following areas: bureaucracy and administration, the fight against corruption, as well as in ensuring legal certainty and stability.
Progress The essence of Serbia’s faster progress is digitalization and startup projects. We plan to jointly invest €60 million in science and technology parks. A park in Novi Sad is being built, and it should be completed by the end of 2019” – ANA BRNABIĆ, PRIME MINISTER NEW MOMENT
WINS CANNES GOLDEN LION! After receiving a Bronze Lion for its work “The One” in the Print category, agency New Moment also won a Golden Lion in the prestigious “Industry Craft” category. The project of regional agency New Moment distinguished itself among 32,000 works from 90 countries and 26 categories, winning two lion awards in the first three days of the festival. This prestigious award was accepted by Žarko and Lazar Sakan on the main stage of Cannes Paleo, who stated on this occasion that gold in the “Industry Craft” category has special significance, because it celebrates the skill of implementing creative ideas. “Tonight, we won our jubilee tenth lion. We are very proud of the entire team, of all of our associates from the whole of New Moment and Y&R Dubai, and we are grateful to the Inter-religious Council in Bosnia-Herzegovina for their trust,” said New Moment CEO Žarko Sakan.
SINO-CHINA INVESTMENT GROUP
CHINESE FUND READIES BILLIONEURO PROJECT IN SERBIA!
The Shanghai-based investment fund Sino-China Investment Group is interested in funding projects in Serbia through the PRESIDENT ALEKSANDAR VUČIĆ AND Shanghai Stock Exchange. ~ The idea is SINO-RS COMPANY PRESIDENT, JIN FRANK LI to establish a separate investment fund for financing transport, energy, telecommunications, agriculture and construction projects, with public-private partnership as one of the models. The fund should be formed as part of China’s global Belt and Road initiative and will be established according to international standards Public-private partnership, as one of the models, would be a combination of capital and bonds. Going to international capital markets through an initial public offering (IPO) will also be considered. The fund will be formed once all parties have completed their internal approval procedures, while in the meantime, they are looking for an appropriate pilot project in Serbia.
Placements postings
&
appointments@aim.rs
SONJA SARKÖZI, CEO OF SBERBANK EUROPE GROUP The Supervisory Board of Sberbank Europe has appointed Sonja Sarközi as the new Chief Executive Officer of Sberbank Europe. Advancing from her current position of Chief Retail Banking Officer, she succeeds Gerhard Randa as CEO, as of 1st July 2018. All Sberbank Europe subsidiaries are reporting profits, contributing to Sberbank Europe Group’s overall net profits totalling €15.9 million at the end of Q1 2018. Sarközi has launched implementation of a group-wide retail strategy at Sberbank Europe, with a focus on retail lending products and digital banking services. Prior to joining Sberbank Europe in August 2017, Sarközi led easybank AG successfully as its CEO.
ZSUZSANNA HARGITAI, EBRD DIRECTOR FOR THE WESTERN BALKANS Zsuzsanna Hargitai has been appointed as the new Director of the EBRD for the Western Balkans. Based in Belgrade, she will also head the Bank’s operations in Serbia, where she succeeds Daniel Berg, who is leaving the Bank after almost 25 years of distinguished service. Ms Hargitai was introduced to the Serbian authorities in Belgrade, including Prime Minister Ana Brnabić, by EBRD Vice President for Banking Alain Pilloux. Speaking about her appointment, she said: “I am proud and honoured to take on this new role. My goal will be to further increase our investments and policy reform support in the region, in light of the countries’ European Union perspectives. The EU approximation and accession process is a major reform driver, and it also enhances the region’s attractiveness for private sector investments. The EBRD is well-positioned to play an important role in this, and we are fully prepared to deliver what is needed in financing and policy advice.”
PPF GROUP
PPF GROUP TO ACQUIRE TELENOR BANKA PPF Group announces that it will acquire a 100% stake in Telenor Banka from Telenor Group, subject to obtaining the relevant regulatory approvals. The transaction is a natural follow up of the acquisition of Telenor Group’s telecommunications assets in Central and Eastern Europe, specifically in Hungary, Bulgaria, Serbia and Montenegro. Telenor Banka became a member of Telenor Group in 2013, after the group acquired it from KBC Bank Serbia. In September 2014, it was renamed Telenor Banka. The bank specialises in innovative online financial services; it was the first bank in Serbia to introduce mobile and online banking. Telenor Banka provides its services primarily to Telenor clients; currently, its portfolio includes more than 390,000 clients. In terms of assets, the bank is in the second half of the twenty largest banks operating on the Serbian market; at the end of 2017, the bank had assets under management worth €126 million. The transaction is subject to approval by the National Bank of Serbia and relevant antitrust authorities.
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Digital Transformation
Current Digital Transformation Trends Digital technologies and trends are redefining our world every day. Disruptive and innovative technologies such as the Internet of Things (IoT), artificial intelligence (AI), cloud, analytics and others are changing business models and driving exponential growth. Companies which are leveraging these are and will continue to realize successful business outcomes
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owever, enterprises that are harnessing the combinatorial power of all these technologies now are better positioned to capitalize on the unlimited growth opportunities. By unleashing the power of technology to drive enhanced customer experiences, robust ecosystems, and unparalleled innovation and growth, yesterday’s traditional enterprises are digitally transformed into today’s
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future-ready, or Business 4.0, organisations. Enhancing customer experience Customer experience is a brand’s greatest advertisement. And with the intersection of digital technologies such as AI, analytics, cloud and interactive services, companies are transforming to personalize every interaction, transaction and touch point to enhance customer experience. In the travel industry, customer journeys begin long before customers board flights. Dutch airline KLM is making significant investments in AI. KLM keeps passengers up-to-date with flight information using its Amazon Alexa voice recognition installations at Charles de Gaulle Airport in Paris. Moreover, KLM’s AI-led systems provide customers with relevant information when they contact the airline’s call centres. The airline is also transforming other parts of its business which have direct impact on customer
experience. KLM is currently building systems to predict when an aircraft will require maintenance. By tapping into the 25,000 data-delivering sensors in an A380, or the 500GB of data produced by a Boeing 787 on an average flight, the airline is harnessing insights to transform customer service by minimizing delays. In the logistics industry, customer experience is enhanced with trouble-free, on-time delivery. Nordic postal delivery service, PostNord is in the privileged position of having a wealth of data at its fingertips. The company is capturing much of this data to transition to a Business 4.0 enterprise: using sensors in delivery vans to track distribution, while leveraging the Internet of Things to carry out predictive maintenance in production facilities. Additionally, PostNord is using AI solutions to cut mail delivery delays by 25%. Björn Ekstedt, PostNord’s Chief Informa-
tion Officer, says that the beauty of such systems is that they weed out problems before they can take root. Not only does this drive productivity by reducing the amount of human intervention, it dramatically improves customer experience.
Connecting collaborative ecosystems Companies which are succeeding with groundbreaking innovation and faster growth aren’t doing it on their own. They are connecting collaborative ecosystems that extend beyond the enterprise to span the entire value chain - including customers, peers and partners, and they are relying on digital technologies like IoT and cloud for success. Initially, most companies moved from legacy in-house systems to cloud-based solutions to reduce the overheads associated with maintaining hardware. Today, companies are turning to the cloud to deploy cutting-edge solutions and services with minimum lead time to take advantage of changing market dynamics. Cloud technologies are also enabling growth – simplifying and accelerating business integration following mergers and acquisitions by offering companies access to infrastructure and services on demand. The Netherlands’ leading bank, ABN AMRO is using cloud apps and providing external developers access to their developer portal, turning regulations into opportunities and gaining an ecosystem of co-innovators in the process. ABN AMRO’s use of cloud and an expanded ecosystem of external developers exemplify how Business 4.0 organisations are fueling growth and innovation.
Fueling growth strategies By combining an agile methodology with today’s powerful digital technologies, companies can actually embrace risk, yet quickly adapt and modify, continuously driving growth and profitability. Transamerica, a leading provider of life insurance, retirement and investment solutions, has embraced risk to transform the administration of its US-based insurance and annuity business lines. By transitioning to a simplified, cloud-enabled platform, Transamerica is fueling growth by enabling agile new product development. Further, by simplifying and modernizing the servicing of over 10 million insurance policies, Transamerica will save millions of dollars each year.
Creating exponential value By enabling contextual insights and constant connectivity, digital technologies allow companies to go from realizing incremental gains to unlocking exponential value. IoT, for example, connects machines, devices, sensors and systems to rapidly process and interpret equipment data and intelligently manage performance to prevent potential problems from becoming real
Some of the world’s most successful companies - KLM, PostNord, ABN AMRO, Transamerica and Rolls Royce have embraced technology and risk to redefine customer experience as well as traditional ecosystems and business models ones. With continuous insights into product performance and how users are interacting with devices or services, companies now have unparalleled opportunities to fuel innovation across the product development lifecycle.
Rolls-Royce, a global leader in aerospace, engine development and the energy and marine sectors, uses IoT-enabled technologies to eliminate manufacturing and supply chain inefficiencies and to predict more effectively when equipment maintenance is required. “IoT will allow us to take advantage of fast-paced data innovation – including accelerating our application of industrial AI and a range of
other cutting-edge breakthrough opportunities,” Neil Crockett, Chief Digital Officer at Rolls-Royce, says. Rolls-Royce is now expanding its digital capabilities to deliver increased value from existing services and introduce innovative services to customers across the group. Rolls Royce’s use of IoT and adoption of a more innovative business model exemplify how Business 4.0 organisations are driving exponential value.
The future is here Some of the world’s most successful companies - KLM, PostNord, ABN AMRO, Transamerica and Rolls Royce have embraced technology and risk to redefine customer experience as well as traditional ecosystems and business models. Through technology driven business transformation, these and other future-ready, or Business 4.0, organisations are positioned to lead their industries in defining the future of business.
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Coordination “I expect a functioning coordination mechanism to be urgently adopted, otherwise the positive momentum for BiH’s EU path might be lost. BiH has to be speaking with one voice vis-à-vis the EU and the lack of coordination means also a lack of EU funds.” – GIANNI PITTELLA, PRESIDENT, EUROPEAN SOCIALIST AND DEMOCRAT GROUP
REGIONAL NEWS ROMANIA
AFI EUROPE ROMANIA TO BUILT AFI CITY RESIDENTIAL PROJECT
BULGARIA
AFI Europe Romania has kicked off the construction works for AFI City this month, the company’s first large-scale residential project in Romania. The project already has a 25% occupancy rate. TGC is the general constructor for the first phase of the project, which is scheduled to end in 16 months and involves the delivery of two buildings with 190 apartments, served by 228 aboveground parking lots. Located in northwestern Bucharest, in district 1, the project will include several types of apartments which are focusing on the functionality of the space. The investment amounts to €16 million. AFI City will provide easy access to the main routes from Bucharest, such as Bucurestii Noi Blvd, Ion Mihalache Blvd, Poligrafiei Blvd and DN 1, and it will be also near Bazilescu Park and Straulesti and Grivita lakes.
FARMERS TO RECEIVE ADDITIONAL €358,000 FOR INSURANCES State Fund Agriculture decided to increase the budget of the state aid scheme for the co-financing of insurance premiums for agricultural products insurance by BGN 700,000 (€358,000) in 2018. Thus, the total amount for agricultural insurance reaches €1.1mln. Farmers will be able to benefit from the financial support for disaster insurance of their fruit, vegetables, essential oil crops and tobacco. The maximum amount of funding a farmer can receive is up to 65% of the insurance premium, the fund says. Farmers must submit their insurance policies to the regional directorates of the Agriculture State Fund until 28 September.
MONTENEGRO
MK GROUP INTERESTED IN BUDVANSKA RIVIJERA MK Group, owned by businessman Miodrag Kostic, is interested in becoming the majority owner of the Hotel Group Budvanska Rivijera. At the moment, MK Group, in partnership with Stratex, owns 30% of the shares of Budvanska Rivijera, which has been included by the Government in this year’s privatization plan. The plan for the privatization of one of Montenegro’s most successful companies is planned so that Sveti Stefan and Milocer remain in the state’s ownership, whereas the state’s share in the remaining hotels, Slovenska Plaza, Mogren, Palas, Aleksandar and Kristal would be lowered by the value of the property and given to Kostic and Stratex. Source: RTCG
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9 THINGS EVERY MAN SHOULD CARRY IN HIS BAG
Traffic jams happen, trains get delayed, and the weather can be unpredictable some days. A few handy commuter essentials will make all the difference when you’re en route to the office though. it’s always better to have what you need when you need it. If you still need to buy a briefcase or messenger bag to hold your stuff, we’ve got you covered on that front. 1. Your PC 2. A good, cheap pair of headphones 3. A lightning or micro-USB to USB cable 4. An emergency stain-removing pen 5. A reusable water bottle 6. A portable battery pack 7. A package of pocket tissues 8. An energy-boosting snack 9. A USB flash drive
Reforms “Allowing Serbia to join (EU) through the normal accession process could delay reforms needed in Bosnia and ultimately turn the European country into a target for Turkey and Russia who could back different groups in the country.” – PADDY ASHDOWN, FORMER HIGH REPRESENTATIVE IN BOSNIA AND HERZEGOVINA HUNGARY
BUDAPEST REAL ESTATES CONTINUE SKYROCKETING
CROATIA
PORSCHE ACQUIRES STAKE IN RIMAC AUTOMOBILI Porsche announced last month it has taken a shareholding of 10% in Croatia’s technology and electric sports car maker Rimac Automobili for an undisclosed price. As part of its electrification efforts, Porsche is seeking a development partnership with the young company, the German sports car manufacturer said in a statement. Rimac, who employs around 400 employees, develops and produces electric vehicle components and manufactures electric super sports cars. Rimac’s main focus is on high-voltage battery technology, electric powertrains and the development of digital interfaces between man and machine (HMI Development). Rimac also develops and produces e-bikes under its subsidiary Greyp Bikes, which was founded in 2013. “This partnership now is an important step for Rimac on our way to become a component and system supplier of choice for the industry in electrification”, Mate Rimac, founder and CEO of Rimac, said.
VISARIS
Real estate prices have been growing in the Hungarian capital Budapest. According to Duna House, a Hungarian real estate agency, everybody should calculate with more than €3,150 per square meter by 2020 in the downtown. Furthermore, the increasing demand can raise the prices even higher. This is because investing in real estate in Budapest becomes more and more attractive. According to the Duna House, the real estate prices in Budapest have doubled since 2014. In fact, the average sum per square meter was €1,321 then. Last year this sum increased to more than €2,500. According to the latest data, growth has not stopped. In 2018 the average square meter price reached €2831 in the fifth district of Budapest. At the moment, one-third of the flats reach this psychological barrier of 1.1 M HUF (€3,460). Motivation was mostly the intention to invest, but it sometimes happened that customers changed their small flat to a bigger one.
ALBANIA
BALFIN UNVEILS €350MLN REAL ESTATE PROJECT IN MACEDONIA Albanian investment group Balfin anounced it will invest €350mln in its Skopje East Gate real estate development project in the capital of Macedonia. The mixed-use project, with a gross built-up area of 143,000sq/m, will include a shopping mall, a residential compound and a business park. The project is the largest private investment in Macedonia which will create great business opportunities, guarantee employment, strengthen trade, attract global firms, SAMIR MANE IS THE RICHEST ALBANIAN ENTREPRENEUR AND PRESIDENT AND and offer a new approach to city life, said Samir Mane, president of the OWNER OF BALFIN GROUP Balfin Group, said. Balfin plans to make the investment through its newly created project company Skopje East Gate Real Estate Development in the span of five to seven years and will create up to 2000 new jobs, according to the statement. The Balfin Group owned by Samir Mane engages in real estate, retail, tourism, agriculture, energy, mineral industry, investments, and services through subsidiaries in Albania, Austria, Macedonia, Dubai, Kosovo, Greece, Bosnia and Herzegovina, Italy, and the US.
15 YEARS OF DIGITAL X-RAY PRODUCTION IN SERBIA
Visaris company in Serbia produces high-tech digital systems and digital X-ray devices, which is unique in this part of Europe. The company has been operating in Serbia since 2003 and is one of the pioneers in the development of digital imaging in the world. The Visaris Scientific Team has developed unique digital image processing solutions that rank the Serbian company among the world’s most successful manufacturers of digital X-rays. Devices manufactured in Serbia are being used in medical institutions in 21 countries on five continents, enjoying the permanent 24/7 support that the company provides to its customers. The high-tech products are the work of 60 Serbian workers, engineers and programmers employed in Visaris. Exports account for 85% of the total income of Visaris, and most of the X-rays are sold in the US market. So far, over 500 digital system installations have been implemented worldwide, and the first digital 3D X-ray device will soon be presented.
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BRANKO STEVANOVIĆ, PLANT MANAGER, MODINE COMMERCIAL AND INDUSTRIAL SOLUTIONS
Products For The World’s Markets Modine is an American company that has factories worldwide and deals with the production of thermal systems and components for heating and cooling systems. Present in Serbia for just over a year and a half, the company already launched the construction and expansion of its production area by an additional 50%
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odine’s aim is to constantly improve its technology and thereby adapt to the demands of the market in order to avoid radical changes and forced operational solutions. Such an approach enables a reduction in the potential risks to clients. Considering that Modine is a company that has factories all around the world, how would you rate the business environment in Serbia? Since the start of our development in Serbia – then as part of the Luvata Group – we’ve had really great support from the Sremska Mitrovica city authorities, and that’s still the case today. They are always available for us, and that’s why we’re very satisfied. However, I think the method for attracting foreign investment should be improved, because financial grants are not decisive in all cases. In our case, for example, that wasn’t taken into consideration. When it comes to enticing investors to start a business in Serbia, I think special attention should be paid to their further growth and development plans, considering that various companies and industrial branches don’t always have the same needs. In that sense, local authorities should initiate dialogue with individual firms and contribute wherever help is desired and required.
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This would ensure that practically every company received a support programme for its long-term sustainable development in Serbia, tailored to its specific needs and requirements. Investors would thus have the feeling that they are constantly in the
I will use this opportunity to invite engineers, technicians, and others who are interested, to join us. I want them to work together with us on the creation of a new factory, the mastering of new technologies and the development of products for the world market
focus of their host and would be willing to continue investments that could be extremely significant for the region’s overall development. Your parent company has registered more than 2,200 patents during the 101 years of its existence. Does Modine SRB have experts who could invent some new, unique solutions? Despite the fact that we are personally learning to work in a field that is new to Serbia, we are already seeing interesting production solutions appearing that we can propose for patenting. We are cur-
rently focusing our attention on other activities, but I believe that in the future we will be able to boast of some new, improved solutions. As a company, Modine has a different approach to developing innovation – via the MPS method, among other things, which is based on the Toyota Kata production philosophy. According to that method, the widest possible circle of employees should be included in overseeing and analysing the process, and then also included in the subject discussions that always lead to the emergence of some improvement. You know, people only express great creativity if you give them the freedom to show you what they know. I mentor them in that, supporting them and encouraging them to try even if they make a mistake, which so far hasn’t happened once. What are Modine’s further plans in Serbia? Our goal is for Modine SRB to develop, expand and increase production. Proof of that can be found in the fact that we have already started building and expanding our production area by an additional 50 per cent, where three new production lines will become operational this autumn. These investments should enable us to increase the invoiced value by a certain 30 per cent in the next year. Further development requires the continuation of work on the formation of more stable conditions in the surrounding area, and our constructing of a new factory and launch of new product lines creates new opportunities, as well as new jobs.
Feature Digital business
By Stephen Kelly
Technology Trends To Watch Out For In 2018 In 2018, we see a great deal of potential for a range of exciting new technologies that will support digital business. However, for any of them to succeed, companies will need to invest in the correct digital architectures to support their plans
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n the next 12 months, artificial intelligence (AI), robotics and augmented and virtual reality (AR and VR) will begin to work together, offering more complementary outcomes for businesses that invest in them. AR, in particular, is already starting to reap early rewards in the world of business.The aviation industry was perhaps the earliest to adopt this type of technology, using a mix of VR and AR in training exercises for pilots. Flight simulators have now been around for some time, and the technology is gradually becoming more widely adopted by other industries, such as retail and manufacturing. We’re also seeing a boom in wireless technologies, and these will help support the expansion of the internet of things (IoT). Blockchain also has the potential to bring real value to organisations that use IoT, by providing a method for firms to securely collect information from thousands of sensors.
Digital workspaces
As we move into 2018, the digital workplace will become more of a reality. We recently found, through the Dimension Data Digital Workplace Report 2017, that 25pc of organisations are already investing in workspace analytics tools, AR and micro-learning or training. In fact, just 12pc of enterprises have yet to make physical changes to their office environment in order to embrace digital transformation in the workplace. In terms of enhancing well-established technology, I predict that web-based, real-time communications will become significantly easier, replacing the need for dedicated desktop programs. Newer trends that are already emerging, yet less pronounced, include the use of voice-enabled
virtual assistants around the office. These tools, which are increasingly present in our homes, will help employees save time, and focus more of their energies on tasks that matter. We also expect to see some exciting evolutions in the way office space is used, with IoT-enabled offices providing workers with a more productive environment, and beacon-enabled stores giving shoppers a more personalised experience. By taking a different approach to office space, organisations can also reduce some of the costs associated with physical
In terms of enhancing well-established technology, I predict that web-based, real-time communications will become significantly easier, replacing the need for dedicated desktop programs workspaces, potentially opening up new revenue streams – with more creative use of space. Experimentation with BYOA (bring your own app) – where users choose the tools they want to use rather than conform to IT-mandated tools – is also set to feature heavily in 2018. This will introduce a range of challenges and issues around security, as well as information management, but will offer benefits to companies that have a well-thought-out strategy. Businesses will realise that the most important
benefit of a new technology will simply be getting it to work, rather than focusing on return on investment or total cost of ownership’
How will this impact digital infrastructure?
Businesses in every industry are increasingly aware of the threat posed by digital disruption. As a result, in 2018 we can expect to see incumbent companies shoring up their digital infrastructure so they are leaner, more flexible and better placed to adapt to an unpredictable market. We expect businesses will increasingly focus on speed of deployment over cost. They will realise that the most important benefit of a new technology will simply be getting it to work, rather than focusing on return on investment or total cost of ownership.
Companies that focus on innovation and differentiation will find it easiest to adapt to this market and we expect to see developers using container technology heavily.We also expect more firms to utilise APIs to add value to their products. In fact, container technology is growing at a rate of 40pc year on year, according to 451 Research. Another related change will be a shift in focus from technology architectures to service architectures, as firms attempt to standardise the way they use multiple different services. We will also see an evolution of big data, as firms seek to better manage the information they collect. As we move into 2018, organisations must reconsider their digital workspaces and infrastructure, ensuring that they are both fit for purpose and future-proof. Only then will they be able to take advantage of the many potential benefits of the digital era and stay ahead of the curve.
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Message “We had 30 wasted years as a result of corruption and being hijacked by ideologies, by wrong ideas, and extremists. And lots of people were sitting in the middle saying: ‘I don’t know. My life is O.K.’ Now we are saying there’s more to life than this, please join us.”– MOHAMMAD AL TUWAIJRI. MINISTRY OF ECONOMY OF SAUDI ARABIA
WORLD NEWS GREECE
ONE-IN-TWO GREEK BUSINESSES ‘BREAKING TAX LAWS’
CHINA
CHINESE TECH EXECUTIVES ENTRANCE EXAMS
One-in-two Greek businesses audited in the first quarter of 2018 were found to have committed some kind of tax offense, according to the Independent Authority for Public Revenue (AADE). AADE agents found that 50.2 percent of businesses audited had violated tax regulations. Lost revenue increased by 217 percent compared to the same period last year, with AADE estimating that the actual loss amounted to €21.8 million. More specifically, the number of companies with a violation in the first quarter of 2018 amounted to 2,409 against 1,451 in the corresponding period last year, showing an increase of 66.01 percent.
A total of 9.75 million Chinese high school students have begun to take the 2018 National College Entrance Examination, also known as the Gaokao. The once-a-year test is the world’s largest exam by the number of test takers. Since its resumption in 1977, the fiercely competitive annual exam has been decisive in determining the trajectories of the academic, and possibly professional, careers of test takers. All the founders of Chinese IT giants, including Alibaba Group, Baidu, Tencent and JD.com, had sat for the Gaokao.
KENYA
NAIROBI TO MOMBASA HIGH-SPEED RAILWAY OPENS East Africa is now more accessible than ever. After two years of construction, Kenya‘s largest infrastructure project since independence, a $3.8 billion Chinese-built high speed railway, is up and running. It’s around 500 kilometers miles long, connecting the port city of Mombasa to the capital of Nairobi. Built by China Road and Bridge Corporation and 90 percent financed by China Eximbank, it is the largest infrastructure project since independence in 1963. It’s named the Madaraka Express, after the day Kenya attained self rule.
NIGERIA
BARCLAYS AFRICA TO JOIN THE NIGERIAN STOCK EXCHANGE Barclays Africa plans to join the Nigerian is exploring opportunities in three other access for foreign investors looking Garth Klintworth, head of markets for Absa Nigeria had acquired a securities increase it presence in west Africa’s bigthe third largest in Africa, has in the applications from leading global investincrease foreign investment in one of the
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Stock Exchange as a broker in July and African countries, in a move to create to tap into markets on the continent. Barclays Africa Group, said its subsidiary licence in Nigeria, part of a wider plan to gest economy. Nigeria’s stock exchange, last few years said it was reviewing ment banks to join its trading floor to world’s least tapped emerging markets.
10 REASONS YOUR TOP TALENT WILL LEAVE YOU
There is an old saying that goes; “Employees don’t quit working for companies, they quit working for their bosses.” Regardless of tenure, position, title, etc., employees who voluntarily leave, generally do so out of some type of perceived disconnect with leadership. Following are 10 reasons your talent will leave you – smart leaders don’t make these mistakes: 1. You Failed To Unleash Their Passions 2. You Failed To Challenge Their Intellect 3. You Failed To Engage Their Creativity 4. You Failed To Develop Their Skills 5. You Failed To Give Them A Voice 6. You Failed To Care 7. You Failed to Lead 8. You Failed To Recognise Their Contributions 9. You Failed To Increase Their Responsibility 10. You Failed To Keep Your Commitments
Democracy “I want this government to be criticised. Criticism makes democracy strong. Democracy cannot succeed without constructive criticism.”– NARENDRA MODI, PRIME MINISTER OF INDIA ITALY
GUCCI AIMS FOR €10 BILLION REVENUE THRESHOLD
JAPAN
HONDAJET TO BE SOLD IN JAPAN Japan’s Honda Motor announse it will start selling its small business jet in the country. The firm hopes to start delivering the 7-seater HondaJet in the first half of next year after approval by Japan’s government. The plane costs about 570 million yen (roughly $5.2 million). The HondaJet has already been sold mainly in the United States and Europe, where demand for jets has been increasing among business owners. Last year, Honda delivered 43 of the aircraft -- twice the figure for the previous year -- putting the plane in first place among small business jets.
NORWAY
WEALTH FUND OPPOSED MUSK’S DOUBLE ROLE AT TESLA Norway’s $1 trillion wealth fund said mid last month it had backed an initiative to wrest the role of chairman away from Tesla Chief Executive Elon Musk. The proposal, which was defeated in a vote at Tesla’s annual meeting of stockholders, represented the strongest challenge yet to Musk’s grip on the Silicon Valley car company. Norges Bank Investment Management (NBIM), which runs the world’s largest sovereign wealth fund, favours dividing the roles of CEO and chairman to boost corporate governance. The fund also voted against the re-election of board member Antonio Gracias, but backed the reappointment of James Murdoch as well as Elon Musk’s brother Kimbal. NBIM in March voted against Elon Musk’s proposed pay package, which was valued by Tesla at $2.6 billion and may ultimately become worth much more The Norwegian fund, which owns 1.4 percent of all globally listed shares, held a 0.48 percent stake in Tesla at the end of 2017, worth $252.5 million, according to the fund’s own data.
Italy’s Gucci, the biggest earnings driver at French group Kering, said it expected sales to grow at twice the pace of the luxury market in the coming years and for revenue to eventually reach €10 billion. The fashion company did not outline a timeline for its ambition in a presentation posted on Kering’s website. But it compares to €6.2 billion in annual revenue clocked up in 2017, when it came behind Louis Vuitton as the second biggest luxury label in the world. Gucci has so far defied expectations of a gradual slowdown, after its re-invention with a flamboyant new style under designer Alessandro Michele lifted sales. The brand added that it aimed to have an operating margin of more than 40 percent, compared to around 34 percent in 2017. Gucci CEO Marco Bizzarri and Michele, who both came on board in 2015, gave the brand a top-to-bottom makeover, with new product ranges. Gucci said it would continue to invest in e-commerce, and aimed to further lift sales densities - a measure of how profitable its stores are. Source: Reuters
AUSTRALIA
€1 MILLION LOTO WINNER BAGS ANOTHER JACKPOT A Frenchman has won a million euros twice in the last eighteen months on the same lottery, a feat mathematicians said carried odds of around 16 trillion to one. Le Parisien newspaper said the unnamed player, from the eastern Haute-Savoie region, held winning tickets on both 11 November 2016 and May 18 this year through My Million. The lottery is linked to the Euro Millions franchise, which is offered in 12 European countries twice a week and carries enormous jackpots, sometimes worth more than €100 million.
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Entrepreneurship
The Craziest Plan That Worked
In the six years since ‘Fast N’ Loud’ first aired, Richard Rawlings has turned Gas Monkey into a multi-million-dollar brand 40
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By Zac Crain
W
hen Richard was growing up in Fort Worth, Texas, Raymond Rawlings always had a car or a motorcycle lying around. “It wasn’t the nicest or the best, but it was his,” the younger Rawlings says. Ray wasn’t much of a mechanic, more of a detailer and tinkerer. On
weekends, the guys in the neighbourhood would come over, mess around with whatever car Ray had at the time, and drink beer in the garage. One of those guys who came around also taught Rawlings a lesson in negotiating that he still carries with him: “I was around 13. He said, ‘Son, you could buy a $10,000 car all day long for five grand if you have it in your pocket. Always carry cash.’ ” All this made an impression on Rawlings. He started buying and selling and trading cars before he could legally drive them, getting advice from an old-timer in the neighbourhood on the technical side. (Like his father, he’s never been much of a mechanic.) After completing high school, Rawlings worked as a suburban police officer, a firefighter and a Miller Lite delivery truck driver, but the entrepreneurial bug stayed with him. He started a company called Promo Wipes, which printed ads and logos on deluxe paper towels for car washes, when he was just out of high school. That didn’t last, and Rawlings stumbled into a job selling printing and advertising. He’d never sold anything but cars, but he gave it a shot and found he was good at it. He knew how to talk to people, and that was most of the job. But he also innately understood branding. “Building brands and helping people figure out their identity -- as far as a business identity and everything -- was kind of my niche,” he says. He tried to buy the company, but the owner wouldn’t sell, so he went out on his own with the help of a $100,000 small-business loan and opened a shop, Lincoln Press, in Dallas in 1999. By 2004, the company had done well enough for Rawlings to be able to offer a new Lamborghini Gallardo as an incentive to the first client to spend $1 million. Rawlings had always felt that there was something out there he was meant to do, something bigger. Lincoln Press wasn’t it. So he got out. The success and eventual sale of the company gave him “a little bit of pocket change to start a new business.” And he had a wild idea. Something that would combine his childhood passion with his knack for branding. His older sister, Daphne, had seen only the first page of her brother’s business plan. She might have staged an intervention if he had shown her the rest.
Asking Richard Rawlings how many cars he owns is a question with an answer that varies depending on the hour. At the moment, he says, there are 40, maybe 50, at his compound
His vision was inspired by his father’s weekends as a shadetree mechanic. Rawlings would simply take that, soup it up, and sell it. “I based everything about the brand on the question ‘what could my dad have done when I was 10 or 15 years old?’... He was barbecuing in the backyard and drinking Coors and cleaning his Mustang. That’s the ideology of Gas Monkey. And that’s kind of what I do on every decision we make.” Because he needed a business before they could sell a show about a business, Rawlings hired Aaron Kaufman, a Fort Worth mechanic who had previously worked on some cars for him, and in 2004 the pair opened Gas Monkey Garage in a tiny 130m2 shop without running water or heat and air. For the next two years, they travelled around the country, sometimes for months at a time, hitting car shows, swap meets, trade events, rallies and anything else they could think of to get the Gas Monkey name out there. All the while, like he does with the Lamborghini owner in Florida, Rawlings pestered Discovery. He had studied the credits of all the automotive shows on air, seeing what production companies they used, their management and agencies, and used that to assemble his dream team. He paid to film four sizzle reels showing off his wares. He kept getting close, almost there. This continued for eight years. He compares the experience to the board game Snakes and Ladders: A bunch of new hires would come in at Discovery and he’d have to start all over, again and again. He jokes that they eventually
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Entrepreneurship gave him a show just to shut him up. While he did that, Rawlings needed cash, so he and his wife bought Home Care Providers of Texas -- a home-healthcare company, of all things. He needed something more stable bringing money in, and he saw this was a good business
he could get his arms around, so he jumped on it. “I wasn’t giving up,” he says. “I was still making my calls. I still wanted the show. But it was like, Golly. I needed to just get my mind focused and cleared. It turned out to be a good deal, because I was able to triple the size of that company in a few months. I was just trying to let my head clear.” When Fast N’ Loud debuted in 2012, the Gas Monkey team was still squeezed into the tiny shop. But Rawlings knew that wouldn’t last for long. With the pressure of getting the show on the air gone, everything was about to get bigger - and fast. This was the part he had been waiting for. He had sold Gas Monkey. Now it was time to sell himself. On the floor of Gas Monkey’s headquarters, there is a thick white line, more than a foot wide, separating the offices from the shop. No matter what is happening, once he crosses that line, Rawlings knows he has to be camera-ready. They film every day. That’s why he had it painted there. Of course, it might be easier for him than most people. He swears there isn’t any difference between how he is on camera and off. When he does speaking appearances, he always asks the first question: “Is the Richard I see on TV going to be the same Richard I see today?” Then he
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cracks open a beer and tells them, “Damn sure is.” When the Gas Monkey brand began to take off, Rawlings was ready. He’d already figured out his management style, and he knew how to handle a large workforce in a rapidly expanding business. “I’m not an authoritarian leader,” he says. “If I believe in you enough to hire you, and I’ve looked at your credentials, and you say you’re gonna do X, then you’re either gonna do it or not. I don’t need to micromanage you. It’ll be real evident real quick if you can or can’t.” This is critical, because as Gas Monkey grows, Rawlings is forced to delegate more
On the floor of Gas Monkey’s headquarters there is a thick white line, more than a foot wide, separating the offices from the shop. No matter what is happening, once he crosses that line, Rawlings knows he has to be camera-ready and more. “I just keep pushing things onto plates,” he says. “And there’s a lot of plates out there spinning. It’s the one thing a lot of people don’t get: They hold on too tight.” Besides, he says, it’s more important to him to be the owner than the boss. In his businesses, Rawlings takes on the same role he has on the show. He has the idea, he makes the deal and then he trusts his team to do the work. That gives him control and keeps his brand from becoming diluted -- the fate of many celebrity-driven brands.
“You get an amount of success and celebrity and your door starts getting knocked on: Hey, I wanna make cellphone cases with your name on it. Or all these different things. I learned that on the big items -- the restaurants, the tequila, the energy drink, the apparel and things like that -- most of the time I’m a majority owner. It’s 90 per cent of my money, usually. Other than the large-scale branding and licensing deals, I own those companies and I am backing them. So the authenticity of Gas Monkey and Richard comes through.” Not every idea clicks, though. He thought he could replicate Gas Monkey Garage with a show called Misfit Garage, which features a couple of his former mechanics and their Fired Up garage. He wanted a competing brand. He wanted to own both Coke and Pepsi. “And it just didn’t work.” Even when it comes to cars, he can’t flip everything. Rawlings says he’s made as much as $300,000 on a car. But in late 2017, he sold $800,000 worth of cars at a loss of about 30 percent. He didn’t believe a market would develop for them. “It turned out to be pretty smart,” he says, “because that guy hasn’t been able to sell one of ’em.” Sometimes he says he can tell before he walks out of the gate that a car that just arrived on a trailer is not the one he needs. He’ll decide then and there to get rid of it. Like he says: Move fast. Asking Richard Rawlings how many cars he owns is a question whose answer varies depending on the hour. At the moment, he says, there are 40, maybe 50 at his compound. “But I’m in the business,” he says. “They’re all for sale. I only have about four or five I wouldn’t sell. The rest of them are just inventory I get to play with.” “My goal is not to have the brand I have now,” Rawlings says. “I’d like to have a billion- dollar brand before I’m done. And it’s actually feasibly possible. You can put all the fluff value on stuff - like what is your tequila’s possible worth if you sold it? What is your energy drink? Well, forget all the possibilities. I look at it like: What did we do last year? If you add all the entities, we’re probably a $60, $65 million brand right now - of actual sales, not value. So what are we really worth? And that number gets to be pretty interesting pretty quick.”