European Business Magazine Spring Edition 2023

MAGAZINE EUROPEAN BUSINESS

Ben Knoefler Chairman of KCi Group

Talks global supply chain logistics and the art of sustainability

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Berlin, March 7th, 2023 – How did the cost of living crisis affect saving rates in Europe in 2022? And how has the wealth gender gap influenced the behavior of female consumers?

For International Women’s Day 2023, The Mobile Bank N26 dug into the financial habits of women in 5 of its core European markets – Austria, France, Germany, Italy and Spain. The basis of the research is the analysis of the anonymized spending and saving data of over 2.7 million N26 customers in the above-mentioned markets during the period of January 2022 to January 2023..

Increasing financial pressure on women in europe

Against the background of rising costs and prices, women are particularly under financial pressure as their monthly budgets are significantly smaller than their male counterparts. However, despite having less disposable monthly funds, women demonstrated a greater capacity for planning and saving over the past year, in the various European countries analyzed. While they had on average 30% less money per month in 2022, they managed to save 11% more per month in the first half of 2022, and even 28% more than men in the second half of the year.

Leila Maria Kehl, Group Strategy Manager at N26 and founding member of the N26 Women+ ERG, attributes this observation to socio-economic reasons as well as gender patterns: “Globally, women do 75% of care work – an average of 4 hours and 25 minutes a day – more than three times as much as their male counterparts (https://www.actionaid. org.uk/our-work/womens-economic-rights/unpaid-care-and-domestic-work). This often involves setting aside money for children and the elderly. At the same time, women perceive a higher personal financial risk than men, which they often try to mitigate through saving. The so-called

motherhood penalty, unequal distribution of wealth (women own only 32% of all global wealth, women are 80% more likely to be impoverished at age 65 or older, only 2% of VC [venture capital] money in Europe goes to all-women startups), and unpaid care work also contribute to the financial discrepancy.”

How the cost of living crisis impacts the saving rate of european female consumers

In Europe, a common trend is emerging among women: from the first to the second half of 2022, their average monthly available funds increased: +4% in Italy and France, followed by +2% in Germany and Austria. Meanwhile, the monthly available budget for women in Spain remained stable. Most likely caused by overall increased prices for many goods and services, the plus in monthly available budget did not lead to an increase in the average monthly amount women saved in H2 compared to H1. On average, in the second half of the year, women in Italy saved 15 Euros less and women in Austria over 45 Euros less. Women in France were the only ones who managed to save 5 Euros

more on average in the second half of the year, compared to the first.

Despite higher inflation, spanish women were the biggest savers in europe in 2022

According to the study, Spanish women saved the most during the second half of 2022, and second most (only Austrian women saved more) in the first half of the year. Speaking in numbers: Austrian women set aside 9% of their monthly available funds between January and June, followed by Spanish women who stashed 8% of their monthly incoming budget, while German women saved 7%. French women saved least, with 2%. Between July and December 2022, Spanish women’s savings (in relation to their available monthly funds) decreased by 1%, coinciding with the rise in prices from June onwards. However, despite the fact that Spain was affected by a higher inflation rate than most other European countries’ economies during that time, Spanish women were the biggest savers in Europe (compared to Austrian and German women, who saved 6% of their monthly available funds, and Italian women, who saved 1% in the second half of the year.

Women

Europe save 28% more than men despite having significantly smaller budgets Women in Europe save 28% more than men despite having significantly smaller budgets

TikTok, the Chinese ByteDance-owned video sharing app, has become an integral digital and popular platform for brands, especially in the pursuit of reaching younger audiences. According to the Future of Media report, part of WARC’s Marketer’s Toolkit survey, 75% of marketers plan to increase their ad spend on TikTok this year.

In this first of a new series of reports published today, Platform Insights by WARC Media takes a closer look at TikTok to provide an overview of the key data points that advertisers need to know about, spanning investment, consumption and performance insights.

Alex Brownsell, Head of Content, WARC Media, says: “TikTok plays a growing role in culture around the globe. Its potential ad reach stands at a reported 1.05bn, including 409.1m users aged 18 to 24. In 2022 it was the most downloaded app in the world for a third year running according to data from Sensor Tower.

And its full-screen, vertical video format has inspired copycat products such as YouTube Shorts and Instagram Reels.

“To launch WARC’s new Platform Insights series, we’ve taken a closer

look at TikTok to provide marketers with evidence-based insights on the challenges and opportunities the platform offers at a time when media costs are increasing and media models are shifting.”

TikTok to reach $15.2bn in global advertising revenue in 2023

A year in which the wider digital ad market is set to slow and media models are coming under increasing pressure, TikTok is defying the trend as its two-year growth is set to carry on into this year. According to WARC Media’s latest ad spend forecast, TikTok is set to reach £15.2bn in advertising revenue in 2023, up 51.7% and a near $2bn upgrade from last year’s forecast.

All product categories to increase TikTok advertising investment

TikTok has been a major beneficiary of marketers choosing to rebalance budgets in light of media fragmentation. WARC Media forecasts all categories will increase ad investment on TikTok in 2023, including sectors that are forecast to see an overall ad spend decrease, such as automotive and soft drinks.

While each of the top five spending categories – technology & electronics ($2bn), toiletries & cosmetics ($1.8bn), retail ($1.7bn), clothing & accessories ($1.7bn) and telecoms & utilities ($1.5bn) – are forecast to see their combined annual spend on TikTok surpass $8.5bn in 2023, in other categories the growth will be more modest.

Technology & Electronics sector to boost advertising spend by 14.3% to $2.0bn

on TikTok in 2023

WARC Media’s latest Global Ad Trends report, Media Models in Flux, found that advertising spend in the technology and electronics category is shifting toward digital ad formats in channels like video and audio. As one of the market’s fastest growing categories from an ad investment perspective, ad investment on TikTok is forecast to increase by 14.3% this year, to a combined investment of $2.0bn.

In the US, consumer packaged goods drove significant growth, increasing ad spend with TikTok by 84% in Q4 2022 compared to the quarter prior, according to data from Pathmatics

Energy infrastructure investment in Asia key to deliver energy transition and meet net zero targets

890 Mt of CO2 emissions per trillion dollars generated, or India, with 853 Mt of CO2 emissions per trillion dollars. These Asian countries stand out as the world’s most carbon-intensive producers followed closely by Malaysia, China, Thailand and Indonesia with at least four times more carbon emissions than Europe’s Big Four[4]. These findings suggest a need for major investment in climate infrastructure and renewable energy projects across Asia to accelerate the energy transition and tackle climate change where investment can be most impactful. Particularly in Asian emerging economies, as this analysis presents, demographic change and economic growth are rapidly driving upward the demand for energy which are relying on high carbon-emitting fuels to power their growing economies.

Additionally, ThomasLloyd’s report highlights the significance of changing global demographics, with Asia now accounting for almost 60% of the world’s population and the life expectancy of the average citizen rising to the age of 74 compared to just 41 in 1950.

With a population size of 4.68 billion people (60% of the world’s total) and rapidly growing energy consumption needs, Asia will play a vital role in global efforts to reduce carbon emissions towards a net-zero economy by 2050.

A new research report, titled “Carbon Cost of GDP: how investment in Asia can deliver the energy transition”, conducted by impact investor ThomasLloyd, shows the continent produces more than half the world’s 37.12 billion tons of CO2 emissions with just eight of these countries accounting for 45% of total global CO2 emissions. The study, which measures the amount of CO2 emitted for every trillion dollars of GDP generated, presents insightful comparisons between countries by ranking their emissions’ intensity with respect to their

economic output. This comparison, rather than focusing merely on absolute emissions, makes clearer where impact investments must be allocated in the most efficient manner to tackle climate change. The study presents the findings that the global average Carbon Cost of GDP per country is 382 million tons (Mt) with Asian emerging economies, namely Emerging Asia[2] and Bangladesh, ranking for the most part notably above the 500 Mt levels in sharp contrast with Europe’s ‘Big Four’[3] with 132 Mt.

In the last few decades, Western countries have been successful in both reducing the absolute level of their CO2 emissions, and the carbon intensity of their GDP, but in Asia, it is a different story. This is shown by the 2021 Carbon Cost of GDP comparison for countries like Vietnam, with

Nick Parsons, Head of Research at ThomasLloyd commented: “As a developer and financier of sustainable real infrastructure assets, we are proud to play a part in the region’s economic transformation and in limiting the intensity of Asia’s carbon production and consumption, whilst serving the needs of the region’s rapidly growing population.

“Through this Carbon Cost of GDP report, we are able to identify where progress has been made, and where further interventions and investment are required, as part of ThomasLloyd’s commitment to helping deliver the energy transition across Asia.

With the ‘carbon cost’ of GDP in Asia almost four times higher than that of the four largest economies in Europe, investment in Asian renewable energy is a vital step to achieving a Net Zero world by 2050. “

Fintech lender Sonovate has surpassed £3.5bn in total funding and £1 billion in annual funding for the first time as rising costs force businesses to seek finance to manage cashflow and drive growth.

During 2022, Sonovate provided businesses with £1.1 billion in finance, a 58% increase on the £700 million lent in the previous year, and more than double 2020’s figure of £444 million. Lending hit £312 million in Q4 2022 alone – up 30% from the same period in 2021.

Last year also marked the first time the amount of funding provided in a month surpassed £100 million, with Sonovate initially hitting this sum in October, then again in November when £110 million was loaned to

businesses. This high was a 22% jump on the previous highest performing month, when £90m was provided to businesses.

Sonovate’s record performance was driven in large part by the expanding adoption of its business finance and technology services by consultancies, recruitment agencies and labour marketplaces throughout the world to allow them to pay contractors on time.

The increase in finance deployed to businesses was made possible by the securitisation deal with BNP Paribas and M&G Investments that Sonovate completed in Q3 2022. This deal added £165 million to Sonovate’s funding structure, increasing its capital efficiency and expanding

its customer base, especially in the enterprise space, whilst delivering added flexibility for export financing. The volume of funding provided to customers over the course of 2022 increased by 50% year-on-year as adoption of embedded finance models gains momentum. Meanwhile, enterprise customers* receive approximately one third of Sonovate’s total lending volume. This significant increase in volume demonstrates the continued growth in the use of contract and freelance labour, and indicates the market potential in the years ahead.

In September 2022, Sonovate surpassed £3 billion of funding since inception – an increase of £1 billion in just 12 months as the lender continues to scale at pace. Sonovate envisages continued strong growth as it expects to continue on its growth trajectory in the UK and plans to enter new markets.

Richard Prime, Co-founder & CEO of Sonovate, commented: “Rising costs have presented many challenges, but ambitious businesses are embracing the opportunities to drive growth and increase their competitiveness by securing finance to invest in their workforce.

“With workers demanding new ways of working in response to both the pandemic and the cost of living crisis, and businesses looking to reduce costs where possible, more and more companies are building their teams around a contract-based workforce. Businesses benefit from this approach as they’re more agile to adapt to changing workload or cashflow and, as this trend continues, the need for on-demand funding will continue to soar.”

To date, more than 33,000 freelancers, contractors and gig workers in 44 countries have received payments from over 3,300 businesses supported by Sonovate. During 2022, Sonovate onboarded more than 170 new customers.

To support this growth, Sonovate is accelerating recruitment and aiming to expand to 230 employees during 2023.

Sonovate surpasses £3.5bn in funding to support ‘cost of running a business’ crisis

Just in Case or Just in Time?

The case for reimagining the supply chain model

Michiel Verhoeven, Managing Director, SAP UKI

The impact of supply chain disruption has been felt country-wide. Supermarket shelves have been left empty, packages have been delayed during shipping and gas and oil prices have rocketed. The last few years with the pandemic, the war in Ukraine and economic downturns have shaken the world and left global supply chains, and the businesses heavily reliant upon them, at breaking point.

And yet, there are still challenges to come. For many organisations, and particularly those in the UK, supply chains will continue to be stresstested as the country tumbles towards the longest recession since records began. Now more than ever, businesses have an opportunity to implement what they have learned since the beginning of the pandemic and reimagine the supply chain process, moving away from a Just in Time to a Just in Case model, avoiding further financial and reputational repercussions.

Exploring the causes of supply chain disruption

Since the start of the pandemic, supply chain issues have negatively impacted businesses in several ways, in particular through delays in production of goods and the delivery of services, a decrease in revenues, and a loss of customers. According to the Institute for Government , labour shortages, Brexit trade barriers, global supply problems and panic buying are all contributing to supply chain disruptions in the UK.

The pandemic has been the main factor causing current supply chain issues in the UK despite claims that we’ve now seen the back of it, and according to a survey, 98% of UK businesses agree that factors such as social distancing restrictions, travel restrictions, speed of vaccine distribution and remote working are to blame for the continued struggles. Secondly, 86% said that the impacts of Brexit, such as visa and border restrictions and a lack of available talent, are a leading cause also. Since then, new challenges have emerged with record

inflation numbers and a huge increase in energy prices adding to the challenges.

Where supply chain management was once about cutting costs, businesses are now faced with the challenge of staying ahead of consumer demand, while improving resilience, cutting carbon emissions, and still keeping costs down. With almost a quarter (23%) of businesses anticipating that supply chain issues will still be an issue in the summer months, now is the time to rethink the existing model.

Embracing a new supply chain philosophy

For decades, companies prioritised costs, speed, and convenience when selecting suppliers, building factories, and deciding how much stock to keep on hand. The ‘Just in Time’ philosophy seemed inviolate – the drive for the lowest production costs, the prioritisation of tier-one suppliers, the concentration of suppliers in one region or location, a reliance on historical data to predict demand, and

distribution by the pallet-load. But these have now fallen away.

The majority of UK businesses (84%) now think they should move on from a Just in Time supply chain model to a ‘Just in Case’ model to overcome future supply chain crises. With businesses set to face broader and more frequent global shocks over the next decade, the fate of supply chains has become a boardroom issue, and with Just in Case, companies have an opportunity to not only make themselves stronger but to improve their competitive stance too.

The Just in Case process fundamentally allows businesses to improve their contingency planning. Whether it’s labour shortages, delivery delays or resource scarcities, businesses can offset disruption and remain resilient by manufacturing surplus goods – predicting increased demand and ensuring steady availability in times of need. It means that customers are shielded from disruption out of their control and can access goods and resources when they need it most.

Technology provides a helping hand

But transitioning away from Just in Time to Just in Case requires the support of advanced technology, and in particular, in enhancing traceability along the supply chain. Historically, traceability has proven to be a key hurdle for businesses in supply chain transformation and so it’s no wonder that 70% of UK leaders are now planning to adopt modern technology to help overcome these challenges in the next couple of years.

Traceability is at the heart of being able to predict demand, provide realtime updates, deliver steady availability of goods, and build a sustainable business -all while meeting regulatory compliance. It also acts as a key competitive differentiator for value creation by supporting customers purchase decisions. Nike, for example , has recently taken the lead on traceability and has set a precedent for others to follow.

With traceability also comes the option to review where efficiencies

can be made and to review the value of being involved in a global supply network versus a local one. As many as 56% of UK businesses are now planning to prioritise UK-based supply chain solutions to protect against global disruption and accelerate the production of goods and time to market. The movement towards localisation can also be seen at a political level, with the UK Labour Party’s commitment to building a UK-owned energy company – Great British Energy Ultimately, supply chains today remain in flux – driven by a set of

macroeconomic issues that show no sign of being resolved quickly. Leaders must show that they have heeded the lessons of the past few years and evaluate whether their existing model is suitable for their business and their customers. The Just In Case model provides businesses with a viable alternative that is suited to contingency planning and delivering service continuity. With the trends indicating this is where UK businesses are focusing their attention, leaders cannot forget the value of advanced technology in helping them weather the storm.

Why public organisations need to start gearing up for Cities 4.0

By Mark Gannon, Director of Client Solutions – Public Sector and Nigel Hall, Director of Client Solutions – Health, at Netcall

Technology has become increasingly personalised and portable, and a significant part of our daily lives. Many would say it has become a necessity. The pandemic saw unprecedented digitisation rates, with consumers and citizens expecting greater levels of digital offerings and integrations. We became reliant on digital interfaces to work, shop, manage our health, socialise and more – uncovering a need for digital integration and interconnectedness.

Technology’s role in our lives is growing. Smart cities are on the rise – referring to places that are leveraging and integrating technologies, data, communications and collaboration to facilitate a range of objectives. These include making citizens lives better, generating revenue and promoting sustainability. The global smart cities market is projected to grow at a compound annual growth rate of 22.6% over the next five years. In a survey of 167 cities around the world, 54% reported that the pandemic has accelerated the shift to online healthcare and 53% said it permanently changed the way we live, work, socialise and travel in cities. According to 65% of surveyed cities, the biggest lesson learned during the pandemic was that smart cities will be critical for their future.

What are smart cities and why are they critical?

We hear a lot of talk about ‘smart cities’ but often that neglects a large part of the conversation – it’s about smart infrastructure, across places and regions, including small towns and villages as well as big cities – it’s about “smart places”.

Often, the conversation gets lost in the technology, however, the tech and

In 2000, less than 7% of the world had internet access. Fast forward to today and that figure rises to a whopping 63%. A fact that is made even more astounding when you think that includes emerging and developing economies. Of that 63%, 93% are on social media – most of us didn’t even know what that was in 2000.

data are merely tools for creating the connections needed to deliver better social, economic and health outcomes.

Currently, cities and the organisations within them are generally siloed. Despite often having similar goals, those organisations don’t routinely connect their data to enable more effective, efficient and quality services for citizens. Even within organisations, data often isn’t shared across departments, creating inconsistencies and disruptions for citizens. Anyone who has been through social or healthcare processes knows first-hand that these services are not always designed with the citizen’s experience in mind.

Data is instrumental in this equation. Yes, we need the right technological infrastructure for smart cities, but that is just the engine – it is data that powers the benefits of smart cities. Data empowers organisations to take a more strategic approach to their priorities. For example, data regarding health inequalities combined with information on the environment, air pollution or heat loss can offer insights to determine the best strategies and investment areas. This is a significant upgrade to the more typical generalised approach, which lacks direction.

Why should public organisations care about this now?

People and businesses are struggling, the economy is in recession, and public sector funding continues to be under pressure. The current systems and infrastructure just aren’t sustainable long-term.

Too often, we observe local authorities and health organisations duplicating service provision to citizens that live in an area. These are inefficiencies that the health and wider public sector, with their extremely tight resources, simply can’t afford. What if organisations could respond to events before they happen? They could increase cost-savings, efficiency and service by utilising predictive modelling and analytics. Machine learning and artificial intelligence could be leveraged to inform better decision-making and drive efficiency-boosting innovations. For example, a council could install sensors, which are not expensive, that make them aware if water levels are getting too high and there is potential for flooding. They could then intervene before any damage was done and identify

vulnerable citizens across the locality from multiple, pooled data sources. The costs saved from investing in a few sensors and sharing intelligence versus dealing with the aftermath of a flood are significant.

However, before data can be leveraged in this way, a more integrated approach needs to be established.

The cities and organisations that fail to pursue smart infrastructure not only risk missing opportunities to improve the well-being of the citizens they serve, but they also risk the overall health of the cities they operate in and their own economic development. As smart infrastructure continues to expand, investments will naturally flow to areas that have developed smart ecosystems and the transportation, logistical and environmental benefits they inherently bring. The gap between smart and ‘unsmart’ places then widens in a self-perpetuating cycle.

How can organisations best gear up for Cities 4.0 today?

Some mistakenly assume that smart infrastructure must be complicated, costly and involve mass restructuring

of existing infrastructure. However, in reality, the best approach is an incremental one. This is especially the case in the U.K., where many of our cities and infrastructure are aging and not easy to retrofit.

This begins with policies. The vast majority of councils publish transport, planning, and procurement policies –the key is to ensure these are ‘smart’ friendly and work towards Cities 4.0. For example, local planning policies should stipulate smarter infrastructure, such as full fibre to the home and solar panels for new builds, avoiding rework costs in the future.

Organisations should collaborate to create agreed standards regarding smart cities. This will avoid a Frankenstein-like monster of infrastructure that struggles with interconnectivity. Organisations need to assess their procurement processes and determine whether they’re encouraging or stifling innovation. Make sure any solution your organisation adopts has open standards that play well with other systems and solutions. This is crucial to avoid future issues of numerous smart city platforms

across an area that can’t interact with devices on other platforms, obstructing data consolidation.

If your organisation has an open approach from the start, you’ll be able to utilise other solutions you may need in the future, as opposed to being locked in with a single proprietary offering. A vendor agnostic low-code application platform (LCAP) can serve this purpose, giving organisations flexibility in the future whilst also enabling them to begin developing solutions today. Its drag and drop simplicity makes it an accessible solution for under resourced councils and health organisations by enabling a wider cross section of people to join the development team.

As our environments become increasingly ‘smart’, organisations need to be able to update, improve and monitor their devices without relying on proprietary platform owners, which is why ensuring any adopted solution is agnostic during the procurement process is essential.

An additional benefit of low-code is its adaptability and innovative potential. Organisations need to be able to adapt and respond quickly to changing needs and circumstances. With an LCAP, the traditionally long development cycle is replaced with a quick, cost-effective cycle that allows for repeated iterations and experimentation.

Given that innovation is the bedrock of smart cities, this functionality of LCAPs is critical. The best thing organisations can do is ensure they are supporting innovation with the right solutions, policies and standards, inching towards an ever-smarter infrastructure.

A greater purpose

At the end of the day, the purpose isn’t smart cities – that’s the enabler, the purpose is enabling thriving communities and great places where people want to live, work and play.

This will require consideration of privacy concerns and options for those who are less tech-savvy. Public sector organisations will need to drive digital transformation to meet the demands of citizens and to support effective operations. The result will be a world built around t he individual – a citizen-first world.

Is COPPER set for long-term gains?

Copper, a versatile commodity that can be used for a range of industrial applications in a variety of sectors, has been the subject of an increasing amount of discussion amongst investors in recent weeks. On the 4th of November, prices for the 100% recyclable metal rose by 7.5%, the largest daily rise since 2009.

By Giles Coghlan (pictured), Chief Market Analyst, HYCM

Despite this, copper futures are trading around 17% lower in the year to date at the time of writing, which is likely to be deterring investors from backing the so-called ‘king of green metals’ in the short-term.

However, demand, and therefore prices, are likely to grow in the coming years as the world begins its shift to a greener future at a faster pace. An integral part of the ‘green revolution’, increasing production of electric vehicles (EV) and implementation of clean energy projects is set to double

the demand for copper to 50 million tonnes by 2035.

As such, the long-term future for the price of copper looks bright, but what’s been holding it back?

What is driving low demand and prices for copper in the short-term?

Like many other commodities, copper prices are largely driven by the overall health of the global economy, due to its wide applications across a variety of industries. As such, global recessionary fears are limiting demand and pushing prices lower.

Indeed, concerns that rampant inflation would limit the spending power of large manufacturers caused threemonth copper on the London Metal Exchange (LME) to drop by 2.8% in July, dipping below $7,000 per tonne for the first time since November

2020. Such a decrease came in the midst of a four-month period that saw prices fall by 35%. Clearly, copper markets and investors have little confidence in copper in the shortterm future.

Similarly, central banks’ hiking cycles are also strangling demand. In September, for instance, the Federal Reserve increased the base level by 75 bps, causing predicted copper delivery for December to decline by 3.89%. In this case, copper markets appear to be concerned that aggressive central bank action to combat inflation will cause global economies to slip into recession, which would ultimately drive down demand.

A strong USD is another factor that has limited the price performance of dollar-priced metals like copper. As a result, buying copper has become more expensive for investors holding other currencies, hindering investor sentiment.

Similarly, rising COVID-19 cases in the world’s largest importer of copper, China, could limit economic activity in the country due to its Zero-COVID policy, which will impose further pressure on demand. Indeed, the premiums on Chinese copper imports have plunged from $144.50 a tonne in the first two weeks of November to $102.50 in the week of the 14th of November as a result.

Increased supply

Meanwhile, the production of copper has been steadily increasing. In fact, global refined copper production is set to rise to more than 26 million tonnes in 2023.

As a result, some analysts are predicting that the copper markets will go into a surplus of around 691,000 tonnes in 2023, up from a deficit of 162,000 in 2022. This will inevitably lead to lower prices in the short term. Indeed, experts say that prices could drop as low as $6,600 between December and March. However, perhaps the long–term future for copper looks brighter than short.

Why the shift to a greener future means that copper will reach new heights

Firstly, it’s important to note that, as a barometer of global economic health, the demand for copper is likely to increase as the world’s economies recover following the current recessionary period. However, there are several other long-term demand trends that will be increasingly supportive to copper.

The transition to clean energy, for example, will undoubtedly increase demand. In fact, since renewable energy systems require 5x more copper than traditional power generation, experts suggest that the world will need to use more copper in the next two decades than it has in the

last 130 years if we are to effectively make the transition to net-zero. For example, 3.6 tonnes of copper are needed to produce a megawatt of wind energy. By 2027, it said that nearly 600,000 tonnes of additional copper will be needed to keep up with this demand.

Meanwhile, electric vehicles (EV) require around 80 kilograms of copper per car. As the popularity of EVs grows, so too will demand for copper. In Q2 2022, for instance, EV sales accounted for 5.6% of the auto market, up from 2.7% in Q2 2021. Paired with the fact that EVs use 2.5x more copper than their fossil fuel guzzling counterparts, this demand should boost prices in the copper markets. Indeed, even if the world didn’t invest in green energy solutions, the rising demand for EVs alone would require 6 million tonnes of additional copper production. For copper investors, this should be the cause of a good deal of optimism. As demand catches up with supply, prices will inevitably rise. What’s more, copper could provide cheaper exposure to the green revolution than investments into wind or solar energy, so holdings in copper are likely to be increasingly profitable in the years to come.

To briefly conclude, while the demand – and thus prices – for copper is being pressured by fears of a global recession, the scale of the climate emergency and the need for a ‘green revolution’ grows by the day. As such, copper will be increasingly in demand over the next decade and more, which should

provide investors with some exciting opportunities in the long-term.

Copper CFD, as well as other instruments, is available for trading at HYCM broker.

High-Risk Investment Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. For more information, please refer to HYCM’s Risk Disclosure.

Giles Coghlan is Chief Market Analyst, HYCM – an online provider of forex and Contracts for Difference (CFDs) trading services for both retail and institutional traders. HYCM is regulated by the internationally recognized financial regulator FCA. HYCM is backed by the HYCM Capital Markets Group providing trading services since 1998. The Group via its relevant subsidiaries have representations in Hong Kong, United Kingdom, Dubai, and Cyprus.

*Any opinions made in this material are personal to the author and do not reflect the opinions of HYCM. This material is considered a marketing communication and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by an employee of HYCM, a third party or otherwise.

IT Investments CIOs Should Consider Before Recession Strikes

By Chad Chiang, Managing Director UK, Synology

When the slowdown in economic growth is inevitable, economic recession becomes the primary consideration in the minds of most business leaders. If a recession does occur in the short term, it will create an unprecedented financial cycle. According to Ryan Prindiville, partner in accounting and business advisory firm Armanino Consulting, 2022 will see record low unemployment in the U.S. but record high inflation. Therefore, the Chief Information Officer (CIO), IT director, or business executive must face historically high prices of technology and services. Even Apple Music, Apple TV+ and Apple One, for example, will

be impacted by a UK price hike in December 2022.

Meanwhile, corporate performance has been growing at record levels over the past few years. So, you’re going to see a divide of opinion that business leaders, forecasters and seers have never seen before. I believe that it is common sense that companies will cut costs before the recession; however, cutting certain projects may have some negative impacts on companies. It is better to seize the opportunity to accelerate investment to improve the long-term efficiency of enterprises.

Some CIOs may want to move systems to the cloud because the business will want to have the ability to scale up or down in a controlled recession. But there are investments that

IT executives and CIOs need to make now to withstand a long-term downturn. However, investing in these projects is not necessarily a short-term solution. IT leaders should gradually plan for a more flexible environment, but a three to six-month adjustment timeline is required.

The important goal is to think about how to change the technology organisation comprehensively and consistently, to ensure that investment in important projects can expand the base and create flexibility for the enterprise. Here are a few areas that IT executives should give more thought to, in order to stay ahead of an uncertain economic climate; especially in areas where, recession or not, shifts can have long-term operational benefits.

1. Gain a deep understanding of cost and value structures. IT leaders should always have a deep understanding of cost structures and the value that IT services and investments can bring to the entire organisation. For executives who haven’t figured out how to establish transparency and clarity about their IT investments, now is the time to invest and create the system. Doing so will help IT executives make informed decisions that can save costs or support additional investments. In most business organisations, most of this information belongs to tribal knowledge (which refers to the knowledge owned by a specific ethnic group), which is not easy to obtain or act on.

2. Doubling Down on Agile Development Methods. If your organisation isn’t already investing in adopting agile development methods, skills and processes, use this downturn to give it a boost. Building an agile toolset is not something that can be done overnight. If businesses want to remain resilient through a potential economic downturn, now is a great time to start transforming. Adopting agile development methods allows IT to increase the frequency and depth of updates to corporate development programs to align with corporate development priorities and directions. Enterprises should adopt agile methods to ensure that systems in a

constantly changing environment can perform corresponding functions for the enterprise. In challenging times, increase the frequency and depth of adopting agile methods, strengthen connection and execution capabilities, and enable enterprises to face rapidly changing challenges.

3. Increased investment to improve predictive analysis capabilities. A cost-effective investment that IT departments can make now is in the field of business predictive analytics and intelligence, providing organisations with better tools to gain insight into enterprise spend analysis. IT leaders should invest in more analytical capabilities, more useful and smarter reporting tools, and greater project financial transparency to help smart CFOs make better decisions.

4. Improve efficiency faster. It pays to act first before a potential recession takes hold; the CIO should promote and protect projects that will improve efficiency and productivity. IT executives should seriously consider project initiatives that would be at market risk if not accelerated. If the downturn does affect organisations, any cost-cutting or efficiency-enhancing measures implemented now will lead to a better overall position. We found that the IT departments of the top 10% of enterprises automated processes 2.1 times higher

than their peers; and finally reduced the cost of operating and managing technology by 47%. Before the recession began, certain departments were already able to automate to a considerable degree, including HR, finance, and IT itself. Any IT executive concerned about the potential financial impact of a recession should focus on implementing technologies such as automation so that developers and systems integrators within the organisation can free up IT team members’ time for more impactful work.

5. Reallocate operating cost savings. During a recession, IT operating costs may naturally decrease. A smart CIO will shift some of those idle operating costs to new IT infrastructure instead of wasting that money elsewhere in the business or sitting in the bank. The CIO should effectively transfer these savings to equipment that improves infrastructure efficiency to accelerate the progress of existing projects.

6. Constant looking for the best alternative IT solutions to get the job done. Paying the big money on IT equipment doesn’t always guarantee the performance or getting the same value return, IT world and technology is constantly evolving, be open minded to try any available solutions that does the exact same job but with an affordable price tag, especially in the networking and storage area.

Tage Borg, Chief Technology Officer of Scrive , explains the preventative measures banks should be implementing to protect their customers

In the first half of 2021, criminals stole a total of £753.9 million through fraud, which represents a 30% increase compared to H1 2020. While advanced security systems managed to prevent a further £736 million from being taken [1] , it does raise questions about what other preventative measures banks should be putting in place to further protect their customers.

When blockchain technology is spoken about, most people tend to associate it with cryptocurrencies such as Bitcoin and Ethereum. However, we are increasingly seeing Blockchain technology rapidly disrupt other sectors including cybersecurity, politics, and data analytics.

One of the potential applications, which blockchain or “Distributed Ledger Technology” (DLT) is practically made for, is to make electronic signatures and contract management more secure. To understand how DLT can be implemented to make the signing process more secure and mitigate fraud risk, one must first understand the foundations of blockchain technology.

What is blockchain?

Blockchain is a decentralised digital database of transactions copied and distributed throughout a network which means once recorded, transactions cannot be altered, hacked, or defrauded. Fabricio Santos of CoinDesk compared it to “a series of glass boxes with content everyone can see and verify but can’t change.”

Unlike most conventional databases, composed of tables with columns

and rows, a blockchain is made up of sequential blocks securely linked to each other using cryptography; meaning that if a single block in a chain is modified, it will be immediately recognised that the chain has been tampered with, prohibiting anyone from going backwards and covering their traces if they corrupt an entry.

How does it work?

Any digital file or group of files can be represented by a unique fingerprint known as a “hash” derived by a mathematical calculation based on a file’s raw digital information. The most minute change to a file will result in a different hash value. The hashes, not the files themselves, are the records that are stored in the blockchain. Therefore, it is possible to demonstrate that a file hasn’t been altered by recalculating its hash and matching

How digital signatures and blockchain technology can help to mitigate fraud risks

the hash to its corresponding record in the blockchain.

Applying blockchain to e-signing

In the context of electronic signatures, DLT is an ideal approach to protecting document integrity after the signing process. Unlike other approaches such as certificates, which can expire, or keys, which can be decrypted with sufficient time or computing power, DLT is both time and hack-proof. DLT and e-signature software work in unison to guarantee the integrity of your document by sealing it with a digital signature. Blockchain technology provides a method of securing the digital signature by entering it into a permanent, verifiable public record. This means that in the event of a dispute, you can prove whether your document has or hasn’t been tampered with.

The perfect partnership for security, risk and compliance

In highly regulated industries like BFSI, one of the main challenges to implementing digital services, for traditional branches as well as challenger banks, FinTech and Insurtech companies, is meeting regulatory compliance. Paper documents can be easily modified, and signatures can be forged. In addition to the complexities of compliance, documents that are stored inside filing cabinets still risk being lost or stolen.

Implementing the public-permission ledger model in the context of DLT provides a hybrid of public and private blockchains where anyone can access them if they have permission from the administrators to do so. This provides greater transparency, making the audit processes easier, quicker, and less complex to manage.

Combining DLT and electronic signatures will help to store, protect, and ensure signature authenticity of your documents, making compliance with regulations such as GDPR easier. E-signature software features such as signing party authentication protect your agreements so that they can only be accessed and signed by the intended parties. Partnering with an eIDAS Qualified Trust Service Provider will help to further ensure the integrity of your document as their Qualified Electronic Signatures are regarded at the highest level. Electronic signatures serve as an electronic timestamp, adding an extra layer of protection to your document. Digital identity checks can also be integrated enabling the signing party to authenticate at any time, or any place, signing the document within the same digital workflow, speeding up customer transaction times.

The future of DLT and electronic signatures

So, what’s next for DLT and electronic signatures? How else could we see them being used? As more companies adopt blockchain technology, the concept of DLT being adopted in our personal lives doesn’t seem too farfetched. Digital signatures could represent you as a digital identity with the help of blockchain technology and the EU has already begun to explore this as part of the Digital Identity Wallet. Businesses that have already implemented and are familiar with DLT will have an advantage over those that are yet to integrate the technology as connecting and linking the Digital Identity Wallet with other distributed ledgers will be relatively easy. Furthermore, using electronic signatures in combination with DLT could significantly help reduce fraud as its structural design allows permitted users to check for fraudulent activity easily. This in turn lowers banking losses and improves overall operational costs, while enabling financial institutions to leverage the digital signatures for value-added services for their customers.

[1] https://www.ukfinance.org.uk/system/files/Half-year-fraud-update2021-FINAL.pdf

A UNIQUE NETWORK FOR OUTSTANDING TALENT

InterExec are a London based global consultancy working with C-Suite Senior Executives across all major business sectors, as they confidentially seek their next new challenge.

With a worldwide network of over 15,000 of the leading Search Consultants, InterExec offers a unique support service and, with over four decades of experience, guarantees a track record which is world leading.

The service is individually tailored to the busy Senior Executive who is seeking a choice of opportunities to realise their optimum career enhancement in a new role, with minimum disruption and maximum confidentiality.

The transition from one organisation to another brings with it significant prospects of both short and long term benefit, but equally demands focus and commitment to achieve the best results. InterExec facilitate that process through thorough planning and careful introductions to engage clients with the most relevant search consultants.

The aim is to minimise the client’s unnecessary time wastage and market exposure and to ensure genuine value from, and validity in, all communication and meetings.

InterExec is uniquely placed to plan and implement such transitions, having done this for nearly half a century. The InterExec team are specialists, with a wealth of experience and knowledge at senior executive level as former company directors themselves.

Using proprietary methodology, specifically developed for InterExec, they provide fast and transparent solutions and above all have daily access to thousands of the most influential individuals in the Senior Executive market, providing absolutely current

intelligence and massive unadvertised vacancy access.

Typically a senior executive seeking a new role will have limited access to sufficient senior contacts in the recruitment market. It might seem straightforward to find roles at the bottom end of the executive market through advertisements, job boards, websites and their own personal network, but it is much harder at the top end.

For roles with salaries in excess of £250,000 - where the market is unadvertised and where personal introductions and contacts are essential, in this ‘hidden’ market, it is almost impossible for executives to get a comprehensive view of relevant opportunities and an unbiased view of their prospects.

InterExec specialise in assisting busy senior executives who want to make a move but do not have the time, confidentiality or market access to conduct an effective search by themselves.

FutureChoice, a system InterExec developed over the last 30 years, enables the individual to identify their needs and skills, drawing on extensive knowledge of the market, InterExec can identify the positions that meet these prerequisites, whether they be financial or relating to job satisfaction more broadly.

With the global network of leading search consultants InterExec are well placed to ensure that clients are presented with a strong range of options, whatever their field. InterExec staff have daily access to thousands of the most influential people in the senior executive market, providing up-tothe-minute intelligence that allows them to plug into up to 90,000 unadvertised vacancies a year across all disciplines and sectors.

InterExec’s search consultant network has been established across all major geographic regions and is a unique benefit in identifying the ideal new challenge.

There are two stages involved in the InterExec process. Planning to best determine the career target, strongest market proposition and prepare for an intensive campaign. Followed by Implementation, which constitutes the intensive campaign with comprehensive support throughout.

Planning:

Some Client’s have a very good idea of their objective in this transition and some are absolutely open minded as to where they should best go for the future. Either way it is important to be certain before commencing the search that the target is likely to be

the optimum achievable and that the client presentation, both in word and visual, is best suited to enhance their prospects.

The entire consultation process can be completed in little more than a week, with as little as 5/6 hours input from the client, with InterExec staff working at a time to suit the client wherever they are in the world. By keeping the process as streamlined as possible and minimising interruption to normal workflows, InterExec enable executives to stay focused on their current role whilst setting the stage for the next phase of their career. InterExec then use their market knowledge to identify the people to whom confidential approaches can be made to source relevant unadvertised opportunities. For executives seeking their next new challenge, confidentiality is key. The aim is always to

minimise unnecessary market exposure while maximising a client’s range of options when it comes to changing role. The world is small at the highest levels of business and executives must tread carefully. The processes are geared to absolute discretion.

Implementation:

Whether the client is seeking full time executive employment, interim management, non-executive, consultancy/ portfolio roles or employment in a PE/ VC environment, the channels to market are very similar.

Having agreed the focussed market proposition and the client’s ideal target an intensive campaign is undertaken to unearth the ideal opportunities. InterExec maintains constant contact with the market globally, managing existing and developing

new search consultant relationships. Being in daily contact with the market means InterExec’s knowledge is current and covers all regions, disciplines and sectors.

It is crucial that the client’s target roles be achievable, based upon their expertise and prior experience, and that the way we present the client enhances their prospects. Standard procedure includes InterExec validating client’s qualifications, references, identity, skills, achievements and entitlements – because all this information is set out in advance of our conversations with Search Consultants looking to fill particular roles, time is saved for all involved and the best results can be achieved.

The unique InterExec process and network has proven to be a powerful asset to senior executives seeking their next challenge.

What banks can learn about security in the metaverse

European Business Magazine catches up with Kevin Gosschalk (pcitured), CEO and Founder, Arkose Labs who discusses what banks can learn about security in the metaverse

Should banks be looking to expand into the metaverse?

Certainly. In fact, this is the time for banks to blaze the trails in metaverse banking. These pioneers will have unique opportunities to define and shape what it means to bank in the metaverse. They can tap into the immense opportunities available to create virtual experiences and leverage the presence of other metaverse pioneers to engage with a wider consumer base.

Some banks like JP Morgan Chase, HSBC, and Fidelity Investments have already registered their presence

in the metaverse where they are extending customer services to their metaverse consumers as well as undertaking marketing activities.

How can banks protect their customers from fraud in the metaverse?

Most banks craft their cybersecurity strategies with senior consumers in mind. However, banks venturing into the metaverse must understand that unlike the current digital realm, consumers in the metaverse will be much younger and digital-native. In view of the changed demographics

in the metaverse, banks will need to revisit their strategies and delve deeper to understand how younger, emerging consumers tend to behave. Although digitally savvy, these young consumers are not necessarily security-savvy. For instance, they are prone to sharing their account credentials – usernames and passwords – among themselves. Currently, banks are not accustomed to dealing with such risks.

Further, authentication methods that banks use today such as username-passwords, OTP, tokens etc, may not work in the metaverse. There

may be a need for completely different security protocols to protect young consumers in the metaverse. Banks will also need to ensure enhanced security at various touchpoints including account login, registration, and in-platform actions to be able to protect the digital avatar identities in their virtual worlds.

What are the risks that banks need to be aware of when considering offering banking in the metaverse compared to traditional banking?

Finance companies are a hot target for financially-motivated attackers, for obvious reasons, like the potential for greater monetization. A successful takeover of a consumer’s account can allow an attacker to steal funds in the account, sell it to third parties, seek loans, or worse use the compromised account for money laundering, money muling and similar other financial crimes.

In the metaverse, scams, microtransaction abuse, and unfair play will likely be the top threats that banks face. Another major threat banks must prepare for is the proliferation of

synthetic identities, which currently stands at 30% in the metaverse compared to 9% in the real world. Synthetic identities are fraudulent identities that attackers stitch together using stolen consumer details with fictitious data. They are extremely difficult to detect and deter, because they appear like genuine consumers in the virtual world. To make matters worse, the volume of existing synthetic accounts is massive for metaverse companies – so banks will have to adapt fraud prevention strategies quickly to deter volumetric attacks. Social engineering is another area banks in the metaverse should be wary of. Consider a scenario where a bank is looking to leverage a video game to facilitate in-game customer service. Attackers may target these customer conversations with social engineering attacks. They may create a similar looking bank in the same game and engage in social engineering to convince consumers to share confidential information.

Banks in the metaverse will be up against more persistent and more resourceful Master Fraudster category who script together multiple tools, use fraud farms, and are willing

to invest more time and money to bypass defenses. With these persistent attackers and high stakes, security needs in the metaverse will be even higher compared to what they currently are.

Therefore, banks foraying into the metaverse must rethink their cybersecurity posture to be able to better protect their consumers’ digital avatars. They must keep fraud prevention and consumers’ digital account security central to their planning as consumers’ digital accounts are their gateway to the metaverse. Banks must also put a premium value on trust and safety of their consumers’ digital avatars. They can learn and implement the best security practices that gaming pioneers in the metaverse have adopted to navigate the new digital territories.

What are the long-term gains of banking in the metaverse?

Banks venturing into the metaverse now are well positioned to become the pioneers of new banking experiences for their consumers. For instance, banking pioneers in the metaverse have the opportunity to define financial instruments for virtual real estate, like mortgages, re-think a new credit system, or re-define how people save virtual assets in the metaverse. They can create new and unique experiences for their customers – the opportunities are endless.

With the rise of embedded banking, should banks be offering incentives in the metaverse rather than in traditional banks?

Metaverse offers immense opportunities for banks to create newer experiences for their consumers. JP Morgan Chase has built a customer lounge, HSBC is going to be creating unique experiences for its customers around sports and other types of events, and Fidelity Investments has announced plans to erect an eight-story building in the metaverse where customers can seek financial education and have fun. So, there is a lot of activity around offering incentives already happening in the metaverse and going forward, this is only going to increase.

Effective decision making in an ever-changing world

The business landscape never stands still; changes are a necessary part of its evolution. As Heraclitus is widely quoted, change is indeed the only constant. But when the pace of change is accelerated, it can bring industries to their knees. When the pandemic hit, businesses – irrespective of the sector –faced the sharpest shifts in attitudes, behaviours and perceptions. Fast forward two years and surging inflation, labour shortages, supply chain disruption and uncertainty about the future have laid even more obstacles at our feet.

Written by Chaitanya (Chai) Rajebahadur, (pictured ) Executive Vice President and Head of Europe for Zensar Technologies

Navigating this ‘new world’ of business can be both devastating and exciting for decision-makers, but the good news is, the fog of uncertainty is navigable and effective decision-making can be achieved. We have to look beyond the silos, we have to regain our confidence, and reconsider our approaches to both risk and opportunities that maximise value.

We must do this by tapping into the lifeblood of any business – which remains unchanged amidst the storming landscape – our customers and our employees. Understanding how they think and interact, listening to what they want and need, and identifying positive and negative behaviours is mission-critical for businesses if they are to rethink their approach to risk and value and ultimately thrive in a massively competitive market.

The importance of a human-centred approach

Treasure Data recently revealed that almost half (48%) of UK C-suite leaders now feel less confident making business critical decisions compared to data published before the pandemic. To understand how to react as businesses, we must first focus on a human-centred approach, in particular their shift in values, behaviours and consumption. There are a number of ways businesses can integrate this to remedy these issues. One is starting with organisational insight and speaking to employees from across departments in the context of their working environments to get a sense of the pain points. Immersion into the business and reflecting on bigger strategic

objectives with the people who will ultimately do the work to deliver them can be empowering too. Another way to approach the challenge is to use service design to map all of the nested, layered dependencies within service lines and products. Often, products are nested within bigger services and each has its own set of actors and technological dependencies which need to be understood then assessed through the lens of uncertainty and constraint that we find ourselves in today. Take a well-known UK supermarket brand for example. They sell groceries, finance, clothing lines and insurance – instore and online. How interconnected are their touchpoints? How malleable are the systems? How ready are they to respond to emerging needs?

Once a picture has been formed, clearly replaying this to the organisation regarding the environment, discovery work and changes in strategy (that will inform the trajectory of the business) – is crucial. These presentations don’t need to be kept behind closed doors, socialise them. Transparency is not a silver bullet, but it can empower an organisation coming to grips with the nature of radical uncertainty with a clearer overview of the current situation.

An organisation is only as good as its weakest experience

Interactions with a business can trigger an immediate and lingering effect on a customer or employee’s sense of trust and loyalty, particularly in times of crisis. This is why an examination of customer and employee journeys and data on what these people want and need has allowed businesses to address what needs to be prioritised and satiate customers.

In sum, insight is your friend; removing bias in decision making, prioritising goals and heavily reducing the chances of making the wrong

decision. A mix of targeted qualitative and quantitative metrics about key internal or external touchpoints is essential to focus initiatives and evolve them. Using this data and combining it with a strategic awareness of an uncertain world helps to check that strategy e.g. does the employee or customer reality match up with the supposed uncertain reality, or are some things more concrete and immutable than they seem?

Technology is indispensable for decision intelligence

A recent survey of global communication service providers revealed that one-third rated lack or denial of access to new technology that can solve old problems as a major challenge.

From the cloud to analytics to security systems, access to technology is vital for equipping businesses with the necessary tools to make the decisions reached a reality. Often these technologies can offer speed, scale or additional resilience in the face of unplanned events from the simple use of Zoom to the hybrid cloud configurations that keep digital estates

working in lock-down peaks or market woes.

Moreover, productivity and collaboration are two essential factors for enabling business decision making success, and often it’s the technology experiences employees have that make or break this. The key is ensuring the right technology applications are used at the right time and the evolution of existing systems with smarter overarching layers, because ultimately technology is a medium for experience – and all challenges link back to this for employees and customers alike.

Summing up

The inability to make effective decisions with confidence and speed, and having business models designed in a way that facilitates cross-functional understanding, is resulting in tangible business impact and ultimately affecting how decisions are being made. Now is the time for businesses to bring empowerment back to the decision makers through human-centred approaches, experience and technology.

Are quotas for women on boards really the answer to the lack of diversity?

From 30 June 2026 listed companies in all 27 EU member states will need to have at least 40% of non-executive director posts or 33% of all director posts occupied by women. In cases where a male and female candidate are equally qualified for a role, priority will be given to the underrepresented sex. The aim of this is to make sure that quotas are being met and that qualifications between both sexes are equally considered.

By Francesca Anoja, International HR Director at BIP

The Women on Boards Directive will introduce fines for failing to recruit enough women into high level positions, holding businesses accountable for their role in creating a gender-equal Europe. There are mixed sentiments around the value of such quotas and whether or not they can really make a significant difference to gender equality.

On the positive side, Norway’s example in 2005 proves that quotas can be successful in implementing change. Once the nation changed its legislation to implement a quota, women directors went from 5% to 40% in just seven years.

In the UK, there have also been significant improvements towards gender equality in the workplace, even though the country does not have a mandatory quota for women on boards. The proportion of women on FTSE 100 boards has more than tripled in the past 12 years; from 12.5% in 2010 to 39.1% in 2022 according to the latest FTSE Women Leaders report . It does however have a government-appointed independent body, the Hampton-Alexander Review, which recommends a target of 40% of women on boards. The Financial Conduct Authority earlier

this year also set a target for women to hold at least 40% of seats on boards of listed companies.

However, by introducing these measures there is no guarantee that there will be an improvement in gender diversity and equality if companies simply look to fill a quota and don’t take real action to support equality. In addition, there are various other barriers in play which continue to prevent women and those in underrepresented groups from having equal opportunities in the workplace.

Challenges beyond the board

A diverse workforce is a successful workforce. Diversity can drive innovation and growth as a company stands to benefit from different views. There is evidence to suggest that lack of diversity in firms can in fact weaken the quality of decision making while having diversity in leadership can increase profits. Companies should focus on thoughtful recruitment processes by exploring outside of their typical scope, and that takes training, new ways of thinking and challenging bias.

Simply putting in place a quota is not the only way we can encourage more diversity in firms, and arguably it’s not enough. To ensure that women are

exposed to equal opportunities, companies should also look to retain and nurture existing talent by creating mentorship and training programmes, making sure that every employee can access the same training and enjoy the same career progression.

Workplace culture

The great resignation has highlighted the shift in employee expectations with many now looking to work in companies which match their values. It’s never been more important for companies to examine their working practices and provide a place where anyone can thrive regardless of background or gender.

Culture plays a big role in improving diversity within businesses – women and men need to be treated equally beyond just recruitment and retention. Research by King’s College found that women in leadership positions continue to face everyday sexism and inequality in the workplace, including ‘‘micro-aggressions’’ and ‘‘incivility’’. These behaviors can have a significant impact on their career.

Women should also not be penalised for having children or needing flexible working arrangements to manage external priorities. Offering work styles that support working parents will ensure that they don’t have to give up work or let their careers take a back seat to support their family obligations.

Beyond gender

While quotas could increase board representation for women and provide role models for all levels, companies also need to address diversity beyond gender. According to the Parker Review, just six FTSE 100 CEOs are from a minority ethnic background, and 16 at companies on the FTSE 250. As well as encouraging and supporting more women into senior positions, employers must also do more to attract and develop employees from all socio-economic backgrounds. Doing so is critical to building a truly representative employee network and to promoting diversity of thought.

Accepting diversity is much more than a gender quota, it includes examining how employees are recruited, access to training given, workplace culture and support given such as parental leave. It also includes acknowledging and learning about bias regarding, race, education and social environment. As a woman, I have to challenge my biases daily, pay attention towards any preconceptions I may have, including the one towards men. Finally, as leader I have to do all I can to push towards equality, with the hope that in the long term a more diverse and gender-equal workplace will be the norm. While this is a good first step, we all have a duty to push towards a workplace where everyone can succeed.

Don’t forget the human aspect to deliver effective governance

It is easy to approach governance in a purely legalistic or box ticking process orientated way. However, good governance involves people working together in a system, therefore we ignore the human factors of governance at our peril.

By John Harte (pictured), Managing Partner at Integrity Governance

It’s by building strong emotional and interpersonal connections, along with the culture this helps to create, that makes boards more effective and deliver good governance. Effective governance demands three fundamental human characteristics that are the currency that keeps the system working well. They are trust, respect and honesty. All attributes of people!

The dynamics of the group - the way that it interacts and the way that power manifests in the social system that is our governance - can have an enabling or constraining impact on how well governance works.

The challenges of not being able to meet in-person

Unfortunately, the move to the virtual world, the growth in hybrid working and the challenges of meeting “in-person” have made relationship building

between those on the board more difficult. The virtual world makes it harder to assess nonverbal communications and has reduced the opportunity for spontaneous “corridor” or “kitchen conversation” interactions where governance and other issues can be informally raised and advice dispensed.

Emotional intelligence and governance

Today, the hybrid way of working demands that directors are emotionally intelligent to generate good relationships with others on the board, and beyond. This means that they are empathetic and have self-awareness when communicating; enabling them to build engagement, generate trust and respect, and provide leadership. To provide an example of emotional intelligence in action, a chair with emotional intelligence will evolve away from a traditional command and control style to a more facilitative leadership. This will see them create and nurture a board culture of psychological safety, where bad news travels to the board more quickly than good, where directors have the courage to constructively challenge, and where it is fine not to have all the answers, particularly during these difficult times. Challenging assumptions is particularly important during a period of volatility, when decisions need to be taken quickly. Only then can the board have assurance that they are on the right path and governance is as it should be.

Relationship between the CEO and chair

Role clarity and mutual respect are crucial foundations of the most important relationship in the governance system – that between the chair and the CEO – because of the enormous impact it has on the performance of the business. However, to be a value adding relationship it needs to be one built on trust and where there’s candour and honesty on both sides, which is where emotional intelligence comes in. It’s those who operate with emotional intelligence who will reflect on

how well this relationship is working, and take the opportunity to recalibrate, where required, to ensure that the rapport is an asset to the board and the organisation.

Culture

In fact, emotional intelligence is hugely important in helping the board to foster a positive company culture One which encourages healthy dayto-day attitudes, ethics, behaviours and “ways of doing things round here”, that sets the foundations for real, tangible business growth.

There are four pillars of culture that engender business success and good governance during these complex and uncertain times, all linked to the board being emotionally intelligent.

• Agility and adaptability . To deliver this boards need to promote an entrepreneurial spirt which will help unleash the potential of their people to devise new ideas to take the business forward. Boards need to encourage a curiosity and fearlessness to inspire creativity, innovation and continuous improvement. As part of being emotionally intelligent boards must lead by example by demonstrating diversity of thought and ideas in the boardroom, so the rest of the business has the confidence to follow suit.

• Resilience. In order to bounce back after setbacks and be in a position to deliver growth it’s emotionally intelligent boards that have robust, transparent and visible leadership, to help ensure engaged and empowered employees.

• Moral courage . Building on from resilience it’s emotionally intelligent directors who are courageous in confronting reality and dealing with problems with integrity. They will create a culture of psychological safety to protect those employees who do speak up, and encourage them to do the right if sometimes difficult thing.

• Candour. It’s those organisations with an open culture where bad news comes to the board more quickly than good which can quickly focus on and solve challenges before they potentially become bigger issues.

It’s not possible to deliver effective governance by ticking off a set of legal requirements. Good governance relies on positive relationships between those on the board and the culture they generate, which requires directors to have emotional intelligence. Only then in today’s increasingly hybrid working world can directors gain trust and respect on the board, and throughout the organisation, enabling them to deliver effective governance. Additionally, having an emotionally intelligent board is key in helping businesses to navigate uncertain times and drive long term profitability.

No Time to Procrastinate for SMEs

With COVID-19, labour shortages, and now the impact of geopolitical conflict to contend with, businesses are losing confidence fast. New and considerable risk factors to economic growth and inflation are causing unprecedented levels of volatility and unpredictability. Rising costs, such as energy and goods, are shrinking budgets, which is resulting in a polarised reaction from businesses: accelerate digital transformation plans or stop and take stock.

Economic Reversal

The speed with which the economic outlook has changed has taken many businesses by surprise. In January 2022, companies were fretting about managing growth in the face of the great resignation and endemic skills shortages. By June, they were experiencing raging inflation and rapidly reducing customer demand. Is it any wonder so many businesses are rewriting growth plans and looking to ride out the next few months in the hope that 2023 will bring better economic news?

But that approach will not succeed. With almost 500,000 UK small businesses ‘at risk of going bust within weeks’ according to the Federation of Small Businesses, this is no time for procrastination. Change is essential. Indeed, with global economic volatility set to endure for years to come, business success, even business existence, will demand a proactive approach and rapid decision making for the long term.

Companies must get to grips with the new economic realities. And that means achieving a far greater level of insight into customers and prospects; eradicating inefficient manual processes; and finding effective ways to manage and engage the post-COVID hybrid workforce.

Insight Driven Revenue

Opportunities have not vanished overnight. Indeed, the downturn in demand is far from consistent: while manufacturing as a whole is being hit particularly hard by cost increases and supply chain disruption, businesses involved in electric car development,

for example, are still buoyant. As a result, businesses need to be far more insight driven and assess the implications for both customers and prospects if they are to both maximise opportunities and minimise wasted activity.

Can the business identify customers that are still good opportunities and could be encouraged to buy more? Is there any way to identify customers at risk – those that may not just stop buying but could be on the brink of failure, potentially with unpaid invoices? Is the company evaluating prospect buying behaviour to understand the new digital buying cycle and assessing when best to engage? Without this insight, companies will struggle to quickly adapt to the new economic reality.

But where is this insight? Without a CRM system, transactional information will be locked up in finance

systems – which means sales and marketing have no access to buying and payment history. Individual salespeople will likely know the state of play within specific customers – but if a company lacks the tools and processes to capture and utilise that information, it will be very difficult to identify either opportunities or problems.

Empowering a Hybrid Sales Team

Additionally, of course, companies are still struggling to recruit and retain skilled staff. Management is still coming to terms with the challenges created by a hybrid workforce – a model that adds time and complexity when it comes to onboarding new employees. Not only is vital customer and sector knowledge disappearing but the remaining workforce

is under huge pressure to be more effective and efficient.

Businesses need to capture vital customer and prospect information, but also ensure processes are in place to actively and consistently use the information to drive revenue and support business decisions. For example, it is now a priority to implement a customer risk process to better manage customer interactions. Combining the insight within the CRM to identify a customer at risk of leaving with a workflow to manage the process –for example by colour coding customers, Red, Amber and Green – will highlight the level of risk and ensure sales teams know which customers to prioritise.

Using a CRM platform to record information is a good step. However, transformation is achieved when a company changes its language and culture, and uses that information to identify

business opportunities and better manage customers. For instance, in the current market, it may be prudent to undertake a customer credit check earlier in the sales process to avoid wasting time on a prospect that would represent a high risk.

Embracing Essential Change

Companies need to adapt fast to these new challenges. What will provide an edge over the competition? Is there an opportunity to trial a different approach in one part of the business? Those that recognise the power of CRM to both capture data and support effective, consistent processes are well placed to respond quickly to the new economic volatility.

Agile businesses are leveraging CRM to automate business workflows and reduce manual effort – such as the life insurance company that has replaced manual processes with digital customer onboarding, online application forms and email reminders. Or the shutter company that has replaced its face-to-face sales model with a fully integrated online solution that is faster and more efficient for both customers and the business. Companies are using digital transformation to create a new sales and marketing playbook, automate processes, and ensure individuals are both effective and efficient: taking the right steps at the right time to maximise opportunities.

With every change, these businesses are using the data captured

within their CRM to assess performance. What are the metrics showing? Are certain individuals within the remote sales team underperforming – if so, early intervention is key both to safeguard the sales pipeline and minimise the risk of losing a member of staff who is, perhaps, struggling with too much time working from home and missing collaboration.

Conclusion

In a good market, selling is easy. With a recession looming, however, successful businesses need to stand out and outperform the competition. From products to services, sales to marketing, it is those companies that identify and respond to any opportunity to be best in class that will both survive and thrive.

But that requires immediate insight. In a changing market, companies need to know what is working today and what isn’t working. Where are the risks? Where are the opportunities? With great business insight, companies can adapt and make the right decisions in what will continue to be a difficult trading environment for some time.

It may be daunting, but businesses –especially smaller businesses – need to be brave to survive. There is no room for procrastination. Doing nothing is a fast track to failure. Investing in change today will future proof and arm the business with the ability to stand out from the competition.

It may seem counterintuitive, but businesses must fight the urge to batten down the hatches in the wait for what comes next, says John Cheney, CEO, Workbooks. To grow revenues and reduce costs, investing in ways to improve productivity and remove inefficiencies from business processes is more crucial than ever –especially given the added complexities of today’s hybrid working model. The right technology can help future proof a business against the unknown – joining up processes across the entire business, tailored to achieve its specific goals, with the flexibility to adapt and grow.

W

Megan Neale, CIO, Limitless

We’re seeing a new trend emerge in the form of the Flex Economy, where consumers can earn extra ‘top up’ income. The Flex Economy is represented by the app-based economy that every day provides millions of people all over the world the flexibility to live, work, and access food and essentials on their own terms.

Given the current economic climate, the need for people to have more financial security is more important than ever before. A recent study showed that Gen Z were saving 14% of their income on retirement, which is more than past generations. Therefore, the number of people opting to take part in the flex economy across a wider range of social demographics will no doubt accelerate. Younger demographics tend to be known for being more in touch

flex

with the tech-based world but over the last few years, there has been an increase of people across all demographics taking part in the app-based economy.

Are side hustles on the rise?

Generally considered an alternative way to earn additional income, a side hustle or a side gig is separate from your primary job. Side hustles aren’t part-time jobs either. The beauty of a side hustle is that you can work on your own schedule. A recent survey found that 76% of app-based workers were Millennials and Gen Z with more than half of this demographic using more than one app-based platform for work. Almost a quarter were 45 and above which shows that side hustles are popular in every demographic.

Having a side hustle is not a new concept. People have been taking side

gigs for a long time. The phrase was coined in the 1950s when traditional jobs were scarce and people needed income.

However, the main difference between a side gig of the past and a side gig today is technology, as side hustles can be conducted via your phone alone. Not constrained to a worktable or office desk, you can operate from the comfort of your own couch, your favorite coffee shop, or even a park bench. In fact, this can all be done anywhere through apps on your phone.

There are also a range of side hustles in different industries that allow people to pursue different careers and be creative with their time. Some common side hustles include freelance customer service, social media management for small businesses, marketing roles, tutoring, online music lessons, administrative tasks and many more.

The rise of the

economy:

hy more people are looking for a ‘side hustle’

But how much is this trend being driven by the recession? While there are many reasons a person would choose to boost their income with a side gig, they are often necessary to make ends meet for many people. This is especially true when wages remain stagnant and the cost of living keeps increasing. Individuals are juggling side hustles alongside their day job just to live a comfortable lifestyle. Bankrate’s survey showed that 3 in 10 working Americans with a side hustle say they need the extra income to help cover the cost of regular living expenses.

Enter GigCX

Consumers look at a company’s customer service as a key aspect for potential business with them. Many are likely to switch companies immediately after a bad customer experience.

This is where GigCX experts could play a pivotal role; GigCX is the term used for deploying a gig-based crowd of people to provide customer service via an app. This allows individuals to provide customer service from anywhere in the world.

Those who already have a demanding primary job, restricted schedules, or the inability to possess a vehicle are still able to reap the rewards of gigs as they can access the app from their phones and they have the ability to choose a time that is convenient for them. GigCX has become a fast-growing side hustle because of the multifaceted benefits it brings to brands, consumers, and Experts alike.

The increase in brands and businesses using a GigCX model is only going to continue to rise, with Gartner predicting 35% of the CX industry will be gigbased by next year. This allows knowledgeable consumers of those brands

and services to earn extra income by becoming experts and helping to answer customer related inquiries through the platform.

It’s a win-win for both consumers and the Experts, as consumers will receive a higher level of customer service from someone who is very familiar with the company. Plus, Experts get to work for a brand they love and help people with issues they may have faced themselves.

The bottom line

Side hustles can be a helpful tool and allow for extra income and different lifestyles. As the flex economy becomes more prominent, side hustles will increase. Whether this is due to ease of technology or the cost-ofliving crisis, GigCX can help people dive into a side hustle and increase their income at a time that is convenient for them.

No Time to Procrastinate for SMEs

With COVID-19, labour shortages, and now the impact of geopolitical conflict to contend with, businesses are losing confidence fast. New and considerable risk factors to economic growth and inflation are causing unprecedented levels of volatility and unpredictability. Rising costs, such as energy and goods, are shrinking budgets, which is resulting in a polarised reaction from businesses: accelerate digital transformation plans or stop and take stock. It may seem counterintuitive, but businesses must fight the urge to batten down the hatches in the wait for what comes next, says John Cheney, CEO, Workbooks. To grow revenues and reduce costs, investing in ways to improve productivity and remove inefficiencies from business processes is more crucial than ever – especially given the added complexities of today’s hybrid working model. The right technology can help future proof a business against the unknown – joining up processes across the entire business, tailored to achieve its specific goals, with the flexibility to adapt and grow.

Indeed, with global economic volatility set to endure for years to come, business success, even business existence, will demand a proactive approach and rapid decision making for the long term.

Companies must get to grips with the new economic realities. And that means achieving a far greater level of insight into customers and prospects; eradicating inefficient manual processes; and finding effective ways to manage and engage the post-COVID hybrid workforce.

Insight Driven Revenue

Opportunities have not vanished overnight. Indeed, the downturn in demand is far from consistent: while manufacturing as a whole is being hit particularly hard by cost increases and supply chain disruption, businesses involved in electric car development, for example, are still buoyant. As a result, businesses need to be far more insight driven and assess the implications for both customers and prospects if they are to both maximise opportunities and minimise wasted activity.

Can the business identify customers that are still good opportunities and could be encouraged to buy more?

Economic Reversal

The speed with which the economic outlook has changed has taken many businesses by surprise. In January 2022, companies were fretting about managing growth in the face of the great resignation and endemic skills shortages. By June, they were experiencing raging inflation and rapidly reducing customer demand. Is it

any wonder so many businesses are rewriting growth plans and looking to ride out the next few months in the hope that 2023 will bring better economic news?

But that approach will not succeed. With almost 500,000 UK small businesses ‘at risk of going bust within weeks’ according to the Federation of Small Businesses, this is no time for procrastination. Change is essential.

Is there any way to identify customers at risk – those that may not just stop buying but could be on the brink of failure, potentially with unpaid invoices? Is the company evaluating prospect buying behaviour to understand the new digital buying cycle and assessing when best to engage? Without this insight, companies will struggle to quickly adapt to the new economic reality.

But where is this insight? Without a CRM system, transactional information will be locked up in finance systems – which means sales and marketing have no access to buying and payment history. Individual salespeople will likely know the state of play within specific customers – but if a company lacks the tools and processes to capture and utilise that information, it will be very difficult to identify either opportunities or problems.

Empowering a Hybrid Sales Team

Additionally, of course, companies are still struggling to recruit and retain skilled staff. Management is still coming to terms with the challenges created by a hybrid workforce – a model that adds time and complexity when it comes to onboarding new employees. Not only is vital customer and sector knowledge disappearing but the remaining workforce is under huge pressure to be more effective and efficient.

Businesses need to capture vital customer and prospect information, but also ensure processes are in place to actively and consistently use the information to drive revenue and support business decisions. For example, it is now a priority to implement a customer risk process to better manage

customer interactions. Combining the insight within the CRM to identify a customer at risk of leaving with a workflow to manage the process –for example by colour coding customers, Red, Amber and Green – will highlight the level of risk and ensure sales teams know which customers to prioritise.

Using a CRM platform to record information is a good step. However, transformation is achieved when a company changes its language and culture, and uses that information to identify business opportunities and better manage customers. For instance, in the current market, it may be prudent to undertake a customer credit check earlier in the sales process to avoid wasting time on a prospect that would represent a high risk.

Embracing Essential Change

Companies need to adapt fast to these new challenges. What will provide an edge over the competition? Is there an opportunity to trial a different approach in one part of the business? Those that recognise the power of CRM to both capture data and support effective, consistent processes are well placed to respond quickly to the new economic volatility.

Agile businesses are leveraging CRM to automate business workflows and

reduce manual effort – such as the life insurance company that has replaced manual processes with digital customer onboarding, online application forms and email reminders. Or the shutter company that has replaced its face-to-face sales model with a fully integrated online solution that is faster and more efficient for both customers and the business. Companies are using digital transformation to create a new sales and marketing playbook, automate processes, and ensure individuals are both effective and efficient: taking the right steps at the right time to maximise opportunities.

With every change, these businesses are using the data captured within their CRM to assess performance. What are the metrics showing? Are certain individuals within the remote sales team underperforming – if so, early intervention is key both to safeguard the sales pipeline and minimise the risk of losing a member of staff who is, perhaps, struggling with too much time working from home and missing collaboration.

Conclusion

In a good market, selling is easy. With a recession looming, however, successful businesses need to stand out and outperform the competition. From products to services, sales to marketing, it is those companies that identify and respond to any opportunity to be best in class that will both survive and thrive.

But that requires immediate insight. In a changing market, companies need to know what is working today and what isn’t working. Where are the risks? Where are the opportunities? With great business insight, companies can adapt and make the right decisions in what will continue to be a difficult trading environment for some time.

It may be daunting, but businesses –especially smaller businesses – need to be brave to survive. There is no room for procrastination. Doing nothing is a fast track to failure. Investing in change today will future proof and arm the business with the ability to stand out from the competition.

India’s 10 richest people control a fortune worth 11% of the country’s GDP

India ranks among the fastest-growing economies in the world, and as the country continues to progress, so are the fortunes of its wealthiest citizens. However, there is staggering wealth concentration among a few individuals highlighting the growing divide between the rich and the poor alongside economic output.

According to data acquired and calculated by Finbold , as of December 2022, the top ten richest Indian individuals controlled a fortune of $387 billion ( ₹ 31.64 trillion). The sum is equivalent to 11.16% of the country’s estimated Gross Domestic Product (GDP) of $3.47 trillion, as projected by the International Monetary Fund (IMF) in October 2022.

A breakdown of the wealthy individuals indicates that Gautam Adani of Adani Enterprises is India’s wealthiest person with a net worth of $132.79 billion, followed by Reliance’s Mukesh Ambani at $96.50 billion, while Cyrus Poonawalla ranks third at $24.88 billion. Shiv Nadar and Radhakishan Damani occupy the fourth and fifth spots at $22.58 billion and $21.25 billion, respectively.

Implication of India’s few wealthy individuals

The high level of wealth inequality in India has raised concerns in the past as it threatens to undermine the country’s social and economic progress. Notably, the unbalanced nature can have adverse effects such as reduced social mobility and political instability. It can also be detrimental to economic growth, discouraging investment and entrepreneurship among the poor, who need more access to the resources necessary to start or grow a business.

Indeed, the growing wealth inequality in India has yet to make it to the policy table, with economic growth taking the limelight.

Despite the imbalance, the Indian government, in a previous survey, acknowledged that there is a need to focus on economic growth to reduce poverty, even if it increases inequality. The government believes the gap will be reduced as growth is realized.

Causes of India’s wealth gap

Overall, India’s gap in wealth can be attributed to several factors, such as the existence of a regressive tax system. In this case, the country’s most prosperous are paying lower taxes backed by specific government policies that are considered beneficial to the rich.

Elsewhere the unemployment scourge is still affecting India, with a majority of the workforce in the informal sector that has long been characterized by low wages, poor working conditions, and a lack of social

protection. This makes it difficult for workers to save and invest in education or small businesses, leading to a lack of economic mobility. At the same time, the privatization of essential services like education and healthcare makes them effectively more expensive for the lower-income groups making them unable to save.

Another main driver for the significant gap in India is the growing income gap, where the high-skilled have benefitted more from technological progress than the low-skilled. In this line, the source of wealth is a crucial element in the highlighted gap, with the wealthiest group deriving their fortune from financial market assets and business equity.

Even though the prevailing macroeconomic factors threaten their wealth, possible recovery measures will likely benefit the rich. Furthermore, the poor, do not have the capital to own equities, a factor that explains why the wealth of rich Indians accounts for a high share of the country’s GDP.

India’s wealth inequality amid economic downturn

It is worth noting that the gap has remained relatively higher despite the lingering effects of the coronavirus pandemic. The health crisis took a toll on the economy, richer Indians likely experienced a decline in wealth since their businesses were affected by the economic downturn that has been worsened by prevailing high inflation. Notably, the rate of decline cannot be equated to the poor Indians.

Overall, India’s situation highlights the growing concerns about the global wealth inequality that has seen governments come under pressure to tackle the problem. In this line, countries with great inequality have been called upon to implement progressive initiatives to redistribute wealth. However, supporters of the gap see no cause for alarm since economic opportunities are likely to be impacted significantly.

Why a recession is such a positive time to begin a business

The recession of 2007-2009 spurred on many now household names. Dropbox, Glassdoor, Pinterest… Looking back even further, you may be surprised to know that Apple, Microsoft, General Electric, IBM, General Motors, Burger King, and Disney were all founded during world economic recessions.

By Sam Keisner, Head of Venture at Startup Giants PLC

Timing was as key as ever; in 2007-2009 it was a time of software boom and major infrastructure within companies to

adopt new methods of working. Slack for example, was created during the recession and complemented the move that companies were making to time management and team based software. Internal comms were suddenly smooth and instant.

Paying respect to the many people struggling to make ends meet globally, Netflix, Airbnb and Uber all save the everyday person a lot of time and money. The latter two examples taking matters one massive leap further, both enabling everyday people to

generate more income on their own terms. Of course those are the concepts that are going to be widespread and see a quick upturn in users.

So why are recessions seemingly such good times to start a business up?

Timing, need, strength of concept are always needed, in terms of market gaps and tech, where is there to go now?

Market gaps created by nonconsumer conscious brands

Consumers pre-2021 were becoming ever more conscious in terms of ethical shopping – labour hours, production methods, sourcing of materials, delivery methods, carbon offsetting …

the list goes on. Today, couple the customer attitude of not wanting to overbuy and create waste, with the need to perhaps tighten their purse strings to preserve cashflow. Suddenly each purchase becomes a highly conscious decision in some way. Those brands who have failed to listen and adapt to their customer’s demands and trends, will fail during the recession, leaving space for new brands to design a perfect product fit and launch to an eager marketplace. It’s conscious shopping on a whole new level.

Access to talent

Many of today’s tech companies grew at exponential rates. Often hiring far more people than was necessarily needed, so sadly during hard times of limited cashflow, hard decisions had to be made about the amount of people hired and the cost of each individual. However, what these companies doing the lay-offs in the last recession didn’t foresee was the pool of sheer talent that now had the time, space and need to finally do what they wanted to do. What had been created was a collective of creative experts all needing money, fast and all keen to work without the constraints of line managers and board members potentially vetoing their concepts. In today’s economic climate we have already begun to see the same pattern of events happening again. In late 2021 and 2022 all of the major tech companies have been laying off staff again in a similar fashion to the former recession. I don’t know about you, but I’m actually intrigued to see what levels of innovation and tech emerge from this recession. With Web 3 and the Metaverse likely to becoming deeply embedded on the horizon, new scales of AI as we’ve never seen it before, can be opened up to provide new methods of meeting and interaction.

Looking to the verticals for investment

Thinking further on this point, I’ve been exploring my top three verticals which I believe are likely to see growth and soar over the coming years. Cyber security is the first

one that springs to mind that is just so ripe for investment right now. That said, there is a deluge of concepts each vying for investment, yet not one offering a holistic service to encompass the needs of companies. The issue here, in my opinion, is that often the solutions are trying to focus on all sizes of businesses. Larger businesses need a totally different cyber approach to localised SMEs or online companies, so if that segregation can occur then it’s my belief that people will be on to a winner with their solution based products.

Eco innovation is the next obvious area. Whether it’s lithium or hydrogen based products, sustainability and net zero attitudes are being embedded into every aspect of consumer goods and workplace processes and codes of conduct. A sustainable future is supported by governments globally so therefore ripe for investment if the product offering is well thought out and scalable. Tech in every single aspect of sustainability is relevant to monitor outputs and levels of emissions/ effectiveness so competition is fierce. What we’re seeing a huge amount of at Startup Giants, is founders opting to hone in on a very niche aspects of this particular vertical, so it’s whether growth is predicted in the vertical as a whole which will define the success of each space and innovation.

Fintech is not going anywhere. With IoT, crypto payments, an increase in digital with web 3 and AI, this area is still, and will for the foreseeable future, always need tech innovations. I’m intrigued to see what happens in this space, based on my comments earlier on about talented people being laid off. Because this area of industry is so regulated, solutions need to be robust and still dynamic. Fresh thinking experts with industry experience are already in just the right position to fill gaps if they can take the leap and get started.

Tech joins people together, it expedites processes, it makes the impossible, possible. Think of your daily lives, there will be an idea in maybe as little as three year’s time that you will have embedded into your daily life that will have been borne out of this current recession.

3D printing Has the Potential to Revolutionize the Manufacturing Process

3Dprinting transforms a digital model into a tangible, solid, three-dimensional object by laying down thin layers of material. 3D printing has gained popularity because it makes manufacturing more accessible.

The worldwide 3D printing market was USD 14 billion in 2021 and will reach $77.83 billion by 2030, growing at a 21% CAGR from 2021 to 2030.

The popularity of customized products

The success of 3D printing in markets such as hearing aids demonstrates that this manufacturing technique has a comparative advantage in producing products with complex shapes. It also demonstrates that 3D printing is well-suited to producing customized products. In contrast to traditional manufacturing methods, the costs of adjusting the product are extremely low. Customized products can be found in areas such as footwear, eyewear, and jewelry. These are appealing markets for 3D printing companies that make products for others.

Profit margins and customization

Markets for customized products have much higher profit margins than markets for mass-produced, standardized products.

In the 2020 World Investment Report, the United Nations Conference on Trade and Development states that given the state of 3D printing

technologies, “the main constraint on the disruptive power of 3D printing is its economic and technical feasibility.” UNCTAD states that “in 2030 3D printing is likely to be still restricted to selected industries or niche segments, unlike automation and digitalization which are expected to impact all industries to some degree.”

3D printing allows for the creation of new products and services.” It remains to be seen how well 3D printing can meet the theoretical demand for new products.

Untapped Potential

3D printing will one day be the leading manufacturing method; industry experts believe that 3D printing will grow significantly in the coming years. Terry Wohlers anticipates that 3D printing will eventually be able to account for at least 5% of manufacturing. It will take roughly 20 years if the annual growth rate of 27% is maintained (2040).

Although the 27% growth forecast is slightly higher than the 25% average growth in the three years before the crisis, we still believe that 27% is a realistic growth rate for several reasons:

The lack of suitable material is being overcome

The lack of sufficient materials has been a major constraint, but experts in the field claim that advancements in building and polymers are resolving

this issue. There will be a wider variety of materials, encouraging more businesses to use the new technology.

Entrance of new adopters into the market

The fact that many new companies and, in some cases, new industries are beginning to work with 3D printers suggests that the share of 3D printed products in worldwide manufactured products will continue to grow. For instance, the US military has begun using 3D printers to create missile launcher shelters. In recent years, 3D printers have also been adopted by the power and energy industries.

According to the Wohlers Report 2021, there were 228 suppliers of industrial 3D printers as a whole in 2020. This is a sevenfold increase from 2012.

Adaptability

The growing popularity of customized products will be advantageous for 3D printing because it is much more affordable to produce than traditional machines. One of every six consumers has purchased a customized product at least once.

Wohlers‘ prediction of a 5% future share of 3D printed goods in total manufacturing is reasonable and will reach around 2040. This scenario can only become a reality if 3D printing mass production becomes economically viable.

Reshoring a stimulus for 3D printing

Supply chain disruption is a hot topic not only in boardrooms but also in public policy debates. Over the last decade, politicians in developed

countries have increased their calls to bring production back home (reshoring) or to move production to neighboring countries.

Since the virus started to spread, it has been difficult to obtain medical product supplies. But calls for reshoring can be seen in the context of declining support for free trade, declining popularity of globalization, and a new geopolitical order that emphasizes economic competition over global cooperation. While the US and China are at the center of this rivalry, other Western nations like the EU have also been prompted to call for strategic autonomy and technological knowhow protection.

Protectionism is a potential push for 3D printing.

Reshoring may become necessary for businesses if it gains popularity

among politicians, causing governments to change the playing field Tariff increases or other trade barrier increases might change the relative costs of producing in developed countries, forcing companies to relocate production sites back home or to countries with which the home country has a free trade agreement.

Various companies have relocated in response to the higher tariffs imposed by the US on Chinese imports. According to the Financial Times, some have returned to the United States, while others have gone to countries such as Vietnam and Thailand.

Most businesses do not believe that reshoring is the best solution to supply chain disruptions. However, as they become more familiar with labor-saving production methods such as 3D printing, it may become an appealing option, especially if politicians increase protectionist policies.

How Can Businesses Use Technology To Reach Sustainability Goals?

Technology has the power to transform how businesses function and thrive. It has also emerged as a vital tool in the long-standing global sustainability initiative as companies seek to reduce carbon emissions, waste output, and impact on ecosystems while reducing costs.

Technology can help businesses reach sustainability goals. There are a variety of ways that technology can help companies, like solar energy and electric cars which we already know work. But other technologies like cobalt recycling which can be used to power bigger devices like the Galaxy Z fold or autonomous vehicles seem far

more futuristic than they actually are. These being mentioned as examples of how businesses can use technology to reach sustainability goals could lead to many new inventions in the future.

The business world has changed drastically over the past few decades due to technological advances in areas like robotics, artificial intelligence, nanotechnology and virtual reality. One of the main areas that have changed is the way that people interact with each other. Through technological innovations, these businesses have also been able to create many new processes that help them manage and/or automate their operations.

There are a variety of ways in which technology has helped to make it easier for companies to expand both globally and domestically; some of the influential sectors are high tech, pharma and biotech.

Cleaner energy

Implementing new technology in any field can be disastrous without proper implementation strategies. Therefore, it is vital for businesses to first analyse all the potential risks concerning their target audience and clarify how they plan to prevent possible errors or losses. This will provide enough time for business managers

to create a smooth transition within the organisation, which will have significant implications on operational efficiency and customer satisfaction levels.

Regarding sustainability, several measures can put a company on the right path. For businesses seeking to reduce adverse environmental effects on our planet, the most effective way is to use renewable energy. Research shows that 70% of businesses have set goals for using clean energy. Adopting innovative technologies such as solar and wind power has also been proven effective for businesses to save money and significantly reduce their carbon footprint. Carbon-negative solutions have made record progress in Europe due to such solutions becoming more affordable now than ever before.

Businesses can significantly lower their carbon footprint by using clean energy as their primary source of electricity and other forms of power.

Fuel cells are also growing because they allow for better integration between traditional business models and newer sustainable solutions.

Lowering costs

When it comes to lowering costs in the supply chain, businesses are now embracing on-site renewable energy solutions. This translates into a lower carbon footprint because of timely power generation during peak times and fewer emissions from the use of diesel. When harvesting more energy within supply chains, businesses should consider implementing innovative technologies such as smart metres. These metres allow businesses to access information about how every department deals with its energy consumption or carbon footprint. Several benefits can come from using smart metres, one of which is that companies can adjust energy consumption for each building and adjust on time according to demand. This can undoubtedly yield considerable results in the long run.

As technology continues to grow and evolve, one of the most important things businesses must keep in mind is to use the right tool for the job. Technology should help your

business become efficient and profitable while leading a more sustainable lifestyle. To become successful, businesses need to find the balance between optimising their output, productivity and resources to produce more with less input.

Sustainability has become a significant topic in the business sector due to its importance when it comes to environmental protection and various sustainability-based initiatives. Even so, a number of companies are still struggling to embrace new technologies in their operations. Even though a lot of research is dedicated to adopting sustainable business models, many companies still lag behind in creating sustainability strategies and ensuring a healthy corporate environment. Undoubtedly, technology has already played an important role in achieving sustainability goals. However, in order to reach sustainability targets and improve corporate management, businesses should implement tools and technologies that can help them make the right decisions at the right time.

Sustainability should be a major priority in all large-scale or small-scale businesses. However, according to research, many companies still need to update or adopt innovative technologies to become fully sustainable.

Can Private Aviation sustain its rapid growth?

Over the last three years, private aviation has soared. In 2021, 3.3 million private flights took off around the world, the most the industry has experienced to date and 7% higher than the industry’s previous boom in 2019. Even at the height of the pandemic, private aviation saw sustained demand while the rest of the travel and tourism sector plummeted.

Yet is the industry set to become a victim of its own success? This surge in interest is creating pressure that the

industry is, arguably, not ready for. If steps aren’t taken to alleviate that pressure soon, the continued flood in demand could start to cause cracks that will be difficult to recover from, costing the industry the growth it has worked for.

Pressure point: Manufacturing

A shortage of raw metals, parts and electronic components is causing manufacturing delays across the board, with every technology-related

sector experiencing supply chain issues. In private aviation, this disruption is felt two-fold, with reduced supply hitting at a time of increased demand. Economic uncertainty is adding to the problem, with many suppliers unwilling to hold too much stock at once in case of a recession – creating further delays and bottlenecks along the supply chain. With private owners and aircraft lessors alike competing for new aircraft stock, aircraft operators will soon struggle to add new aircraft to their roster to fulfil their influx of flight requests.

Pressure point: Demand for used aircraft ownership

The used aircraft market is booming – but there just aren’t enough to go around. As is the case in any sector, scarcity creates price increases, and low availability has caused used aircraft prices to rise 25%-30% in recent months. This fierce competition for aircraft is driven in part by those private charter operators looking to add more aircraft to their fleet (and unable to secure new models thanks to those manufacturing issues) and in part by

an uptick in interest in private ownership post-Covid. Interestingly, young affluent people are one of the biggest growth markets for aircraft ownership, with under 45s accounting for 27% of sales according to pre-owned aircraft sales specialist Jetcraft.

Pressure point: Maintenance

The more journeys an aircraft makes, the more routine maintenance it needs – and with more aircraft in the air than ever before, maintenance facilities are

under pressure to work through a higher volume of repairs and renovations than anticipated, at a faster pace. Again, both the speed of growth and the threat of recession are preventing maintenance facilities from keeping up with demand. A steep investment in new equipment, locations and personnel are needed to make sure maintenance is readily available in spite of the surge, yet concerns that an economic downturn could see a sudden decline are potentially preventing active investment, in turn stalling growth by keeping more aircraft on the ground.

Pressure point: Admin

Both brokers and operators are feeling the strain of increased interest in private charter bookings. For brokers, it’s more customers to secure bookings for in a highly competitive market. For operators, it’s an overwhelming number of requests to sort through, price, quote for, and secure – not to mention the added layer of managing the time and location of those bookings as efficiently as possible. If brokers and operators can become as efficient as possible when booking clients on to private charters, it could relieve some of the pressures felt elsewhere in the sector. Zaher Deir, founder of AeroBid, believes that this efficiency is the first step to easing the industry’s pressure points and enabling more sustainable – and less risky – growth. He comments: “As an industry, we need to change how we operate, following the example of other sectors to use data and real-time communications to make our charter bidding processes easier and more effective. Just look at the problem with empty legs for instance: every empty leg is an opportunity to transport paying customers, but they are being wasted. If the industry can improve its efficiency, it will be able to sustain its rapid growth, which was why AeroBid was founded in the first place.”

What exactly the future holds for private aviation is impossible to tell, but what is clear is that consumers have developed a taste for private aviation that, if managed effectively over the next year, could have a transformative effect on aviation.

The cost of running petrol vehicles has put businesses at a logistics crossroad, but there’s a better way

Attributed to Nicolas de Juniac, UK General Manager, UK

Running a petrol vehicle has become a financial nightmare for Europeans. The average cost of filling up a car with petrol hit £101 in the UK this summer, 50 per cent more than the same time last year. And with increasing energy supply issues, a petrol crisis, inflationary pressures, and the ever-present threat of a global recession persisting, it is highly likely the individual cost of running a car will continue to be high.

However, the impact of this price hike will be just as bad, if not worse, for businesses. In the UK, commercial transport is an essential part of

business, with 5.5 million commercial vans, trucks, buses and coaches on the road last year. A recession will hit this sector hard and could prove fatal for businesses today. During the 2008 recession, van and truck registrations at their peak dropped by over 30 per cent a month , giving us a potential insight into what could unfold in the next 12 months.

For businesses, particularly those that utilise large fleets of commercial petrol vehicles, the unfortunate reality of this economic pressure is that while running and maintaining a fleet of petrol vehicles was once a necessity, in the next decade it could

be considered a luxury. In the current economic climate, the decision of how to get from point A to point B will be a careful one. Petrol vehicles will be weighed up against alternative, electric vehicles, and the race has never been tighter.

Disruptive technologies like electric bikes and the advancements we continue to see in the Light Electric Vehicle (LEV) space are providing modern solutions to a range of transport needs that are helping reduce our reliance on gas-guzzling vehicles.

These technologies support both individuals and businesses, at a fraction of the cost. The 12 per cent rise in e-bike

sales in the UK and Europe during 2021 compared to 2020 underscores their benefit, with a significant proportion of this for commercial use. What is required to make the adoption of these vehicles even more widespread is a mindset change; businesses need to re-evaluate whether it makes sense to use a 1,000kg vehicle to transport a 70kg human or a 1kg pizza or package for 5 miles (71 per cent of all journeys in the UK in 2020 were under 5 miles ). The performance, climate impact and cost savings from this technology already exist; all that is missing is a nudge to get over the line.

T he savings individuals can make from switching from cars to e-bikes is impressive ( research in Germany found that individuals can save up to 90 per cent of their monthly costs by switching from a car to a bike or e-bike), yet for businesses it really is a no-brainer.

Businesses further benefit from using LEVs by the fact that recruitment to operate these vehicles is easier and less expensive, avoiding the need for driving licenses or CBTs. The savings on fines are also significant as business vehicles generate higher fines, and are hit by them twice (paying the fine and paying staff to process the fines). LEV providers have recently been turning their attention to fleet management software that allows businesses to monitor, track and save. The result of all of this is that in a recession, when businesses will be increasingly focused on saving cash, the cost benefits are likely to become LEV’s most powerful argument for driving adoption.

And although cost might be one of the most obvious reasons today to avoid cars, the benefits don’t stop there, as alternatives like LEVs are better for the planet, more accessible, and contribute to better-running cities. Each individual e-bike has the ability to slash the CO2 equivalent from cars by more than 80% per kilometer. The carbon savings entire fleets could make is beyond belief, and given that so many delivery and logistics journeys are a perfect distance for LEVs, it shows the genuine opportunity they have to make a difference.

About Zoomo:

Zoomo is a full-service utility micromobility platform founded by Mina Nada and Michael Johnson, with the mission of turning the world’s delivery fleets electric using e-bikes. Zoomo’s vertically integrated platform encompasses custom delivery-oriented e-bikes, a physical servicing and maintenance network, a software platform for efficient vehicle management, and a finance offering. Zoomo currently operates in Australia, the United States, the United Kingdom, and Europe. Zoomo vehicles are used by major players in the on-demand food and grocery delivery segment including UberEats, Doordash, JustEat Takeaway, Deliveroo, Domino’s, Pizza Hut, Gopuff, Gorillas, Getir, JOKR, Zapp, Milkrun, Cajoo and more.

https://www.ridezoomo.com/uk

Switching to smaller, more efficient alternatives will also reduce congestion on our roads. If businesses lead the way and where necessary move away from cars and vans, the requirement for infrastructure like roads and parking lots that for so long have dominated our cities will be reduced, all whilst making our roads quieter and safer.

A societal switch away from cars will not just save businesses money, it will also help cities become happier and healthier places to live and work. However, if cost is the one thing that enables us to make the switch, which is perfectly understandable in today’s environment, it will be everyone’s gain, so the sooner the better.

Nicolas de Juniac is Zoomo’s UK General Manager, managing the world’s leading producer of commercial Light Electric Vehicles’ largest market.

Why the C-suite is critical to overcoming the challenges of digital transformation

Integrate and include IT in leadership and across the organisation

One of the most common issues when it comes to digital transformation is the lack of integration of the IT department. Digitisation is not just a concern for IT departments, it’s about your entire organisation.

As the importance of digitisation has been increasingly recognised, the digital department of organisations has been given more latitude and recognition. However, they are still siloed off – and that is problematic.

Technologists need to be included in the C-suite and working with other members of the ‘C-team’ to build an organisation-wide collaborative network.

Create the right culture

By Richard Farrell, CIO at Netcall

The value of advanced automation technologies and artificial intelligence (AI) has become indisputable across industries, with 70% of organisations at least piloting automation technologies – up from 57% in 2018. Whilst most CEOs recognise the potential of advanced technologies like AI, many are struggling with how to get digital transformation ‘right’.

Leaders need to establish a vision and get involved from the beginning. Without the CEO and the rest of the C-suite’s dedication to digital transformation, efforts will tend to fail .

Only 11% of respondents in a McKinsey survey believe their current business models will remain economically viable through 2023 . C-suites that fail to prioritise their involvement in digitisation efforts risk their organisation’s long-term future.

However, leaders that invest time throughout the process, shaping their

organisation’s journey, dramatically increase the likelihood of sustainable success.

It begins with vision and leadership

Successful digital transformation is grounded in a practical “automation-first” strategy. According to a recent Forrester report, CEOs are the “chief champion” for digital transformation , and as such it is their responsibility to define their vision and establish C-level oversight. Organisation leaders need to uncover their “why” for automation and then develop a top-down plan that is realistic, malleable and innovation-promoting.

Bottom-up initiatives fail because they lack organisation-wide implementation. Organisations reflect the messaging of their leaders, so that message needs to have intention because it is the foundation upon which a business operates.

Once the C-suite has determined a vision for digitisation, this needs to be clearly communicated across the organisation and modelled by the leadership team. Because if leaders aren’t modelling change, no one else will follow.

Communication and teamwork are key to the success of any plan. Employees have valuable insights and feedback to offer – their input should be encouraged and considered. Leaders are responsible for engaging their team and, by doing so, they will encourage employee buy-in and collaboration that extends beyond traditional organisational boundaries.

Whilst the right solutions are a key factor for successful digitisation, equally essential is a team able and willing to bring those tools to life.

For financial services firm, Aon, “overcommunication” played a crucial role in their successful implementation of a low code platform, which they used to automate their claims management process. This was instrumental

because it built trust across the organisation and established a common goal. It was through the establishment of teamwork and a common goal that Cumbria County Council was able to transform its services in as little as 12 weeks and deliver rapid ROI.

The team’s success was made possible through a pre-determined vision, which enabled the Council to seek out the right solution. They opted for a low-code platform that would pave the way for much needed financial and resource savings with a tight budget, whilst still driving home tailored digital transformation.

They also facilitated a collaborative culture that now sees the Digital Team working closely and co-creating with other departments. With the right leadership, an open culture that encourages workers to engage with each other across the organisation is developed.

Procurement matters

Whilst leadership’s role is key, equally critical is the solution used as the vehicle for digital transformation. Without the right transformation partner, any effort will be moot. This is why the C-suite needs to be involved from the beginning. Procurement teams should include a cross-section of the organisation since the solution will, ultimately, be integrated across the organisation. Vision is important because your organisation’s long-term future should factor into the procurement choice you make today. Taking the time to devise that vision for your organisation’s digital journey will save reworking costs and boost ROI shortand long-term.

Regardless of whether you want to start small or go full-scale from the outset, you want a solution that is flexible enough to offer both, so you can build as you go. The future is unpredictable, so your automation plans need to be flexible because you don’t know how they will need to be adapted as you move through your digital transformation journey over the next few years.

Vertical specialisation is another key differentiator that procurement

teams should prioritise. Your partner will be able to do so much more for your digital transformation objectives if they have sector-specific expert knowledge. Automation is not a generic solution; you need a partner that recognises that and the importance of capturing your voice in automation plans.

For Dreams, the UK’s most recommended bed retailer, its focus on customer experience played a key role in its vendor selection. It needed a partner that understood its unique pain points, could help deliver the nimble digital infrastructure needed to grow and retain its customer base, and enable its CEO and board members to be involved in the journey.

Their CX focus led them to adopt an omnichannel contact centre and customer engagement management solution. This allowed them to deliver exceptional CX at every customer touchpoint, consolidated interactions into a single interface and provided them with the data to see what was driving performance. They combined this with an AI-assisted conversational messaging solution, which ensured the customer journey remained intact as back-office systems were connected to front-end customer problems.

Dreams’ board used their partner’s built-in reporting features to involve the executive team on a regular basis. This fostered a results-drive proactive approach by leadership, the success of which led the company to continue expanding its digital infrastructure.

Thanks to its decision to partner with a multi-solution vendor, they were able to seamlessly build on their existing digitisation efforts and adopt a low-code application platform (LCAP). This paved the way for rapid in-house development of full-stack applications to automate processes, further enhancing efficiency and customer experience.

Their business-wide, leadership driven approach, has enabled the company to give time back to its employees, achieve its original CX goals and devise new digitisation plans.

Think big picture. Think long-term.

The past few years has seen traditional work models completely upended. Whilst many things remain uncertain, one thing is clear – the ways in which we used to work are no longer viable.

Leaders are realising that their customers and citizens interact with various parts of their organisations, and –to make those interactions worthwhile and effective – that journey needs to be seamless. That is only possible with an advanced automation plan under the stewardship of a dedicated leadership team and knowledgeable partner. With that, leaders poise their organisations to be on the receiving end of happier customers, patients or citizens; lower costs; satisfied workers; and greater shareholder return overall. Done right, it’s a collaborative effort, and it starts at the top.

Will your business survive the fourth industrial revolution?

By María Balbás, President, Elev8

At a time of economic uncertainty, business leaders are naturally more preoccupied than ever on how to maintain profitability. Adopting new technologies can help secure a competitive edge but for the full benefits to be felt, the workforce also needs to be equipped with the right skills to deploy these technological advances.

Unfortunately, according to research published by Eurostat, the statistical office for the European Union, only 13 % of people aged between 16-29 are able to perform technical digital tasks, such as writing code. Rapid technological change has led to skills gaps that Europe’s industries are struggling to address.

To turn the tide, business leaders should adopt a strategic approach to digital upskilling, pinpointing and plugging specific skills gaps to create a more resilient and adaptable organisation and – because upskilling requires a direct investment in people – a more motivated and loyal workforce. The digital upskilling challenge is one that is being faced by a wide range of industries. What they all have in common, however, is that the strongest players have placed upskilling high on their corporate agenda.

Automate, innovate, grow

With McKinsey & Co reporting that more than 50 per cent of duties in the manufacturing industry can be

automated, it is no surprise that tech adoption here is high. However, the industry has not undergone a process of merely replacing manual labour with new machines, as these new technologies require a digitally skilled workforce to operate and maintain them.

Industry leaders such as Jaguar Land Rover have therefore committed heavily to digital upskilling, recognizing that it is vital to develop the skilled global workforces needed to design, build and maintain the vehicles of the future. This is an industry which illustrates how investment in new technology must occur in tandem with investment in upskilling to create efficient hybrid workflows between man and machine, which can be harnessed for growth.

TMT – survival of the fittest

In the telecommunications and media sector, rapid changes in the way the public consumes media have placed long-established players under threat from new challengers. A recent EY survey found that 42% of media companies are prioritising enhancing the analytics and data skills of the organization, and more than a third of senior media and entertainment executives said that their company would cease to exist in five years unless they reinvented themselves. The report placed talent management above competition, technology and changing customer expectations as one of the biggest drivers of change in their business. Some companies have risen to the challenge. In the US, for instance, when telecoms company AT&T found

that nearly half of their employees lacked key skills such as data science, cybersecurity, and computer science, the company undertook a huge reskilling project.

AT&T became empowered to update its operations and product offering, evolving from a voice network to a data network and moving from the landline to the cloud. Overall, the business was able to fend off competition from newer arrivals in the market and become future proof.

Money talks

As an industry driven by the ability to spot the next big opportunity and back the right horse, the financial industry has long embraced technological innovation. The potential

of blockchain, artificial intelligence and cloud computing in financial markets are attracting huge attention. For example, blockchain is entering the mainstream and giving rise to DeFi –decentralised finance – technologies. However, to leverage these technologies and provide a boost to the bottom line, it is vital that employees are not just financial experts, but digitally proficient too. Jamie Dimon, Chairman of JP Morgan Chase & Co believes, “the new world of work is about skills, not necessarily degrees” and with a $350 million training budget in play, it would seem that training has indeed been prioritised. Leaders in the financial sector must be comfortable at the forefront of technological advances, and therefore they need their teams need to have a constantly evolving skillset to keep up with complex emerging technologies.

Only those with the right digital skills will be able to capitalise on these, whilst others will be playing catch-up.

Investing in people

Research suggests that workers are keen to reskill and upskill. Post-Covid, many have reassessed their employment options and are seeking out employers who value and invest in them. Far from a luxury, training and upskilling are vital ongoing investments that should form the bedrock of any successful business.

When the only constant is change, the only way to succeed is to evolve. Digital upskilling is nothing short of a fourth industrial revolution – businesses slow to react risk getting left behind.

The EV European Market - Charging Ahead

The automotive industry is experiencing significant changes, particularly in the realm of electrified vehicles. Over the past decade, governments and corporations have taken measures to shift away from traditional gasoline-powered cars and toward electric vehicles (EVs). The European business market is no exception to this trend, as more and more companies are recognizing the benefits of incorporating EVs into their fleets. This essay will examine the current state of the European EV market and explore the opportunities and challenges facing businesses as they transition to electrified transportation.

Current State of the European EV Market

The European EV market has been growing rapidly in recent years. According to a recent report by the European Alternative Fuels Observatory, the number of EVs on the road in the European Union (EU) has increased by approximately 70% from 2018 to 2019. This growth is expected to continue, with projections indicating that the number of EVs on the road in the EU will reach 12 million by 2025.

There are several factors driving the growth of the European EV market. One of the primary drivers is

government policy, as many countries in the EU have set ambitious targets for the deployment of EVs. For example, the European Commission has set a target of reducing greenhouse gas emissions from the transport sector by 60% by 2050, compared to 1990 levels. To achieve this goal, the Commission has encouraged the deployment of EVs through a variety of measures, such as providing financial incentives for consumers to purchase EVs and supporting the development of charging infrastructure. Another factor driving the growth of the European EV market is technological advancements. In recent years, the range and performance of

EVs have improved significantly, making them more competitive with traditional gasoline-powered vehicles. Additionally, the availability of charging infrastructure has increased, making it easier for consumers and businesses to own and operate EVs.

Opportunities for Businesses

The growth of the European EV market presents several opportunities for businesses, particularly in the realm of fleet management. For example, many businesses are recognizing the cost savings associated with operating EVs. EVs typically have lower fuel and maintenance costs compared to traditional gasoline-powered vehicles, making them an attractive option for companies looking to reduce their transportation costs.

In addition to cost savings, incorporating EVs into a fleet can also help companies achieve sustainability goals and improve their reputation. By transitioning to electrified transportation, businesses can demonstrate their commitment to reducing their carbon footprint and contributing to a more sustainable future. This can help to attract customers and employees who are concerned about the environment and promote the company’s reputation as a responsible and environmentally conscious organization.

Challenges for Businesses

Despite the many benefits of incorporating EVs into a fleet, there are also several challenges that businesses must overcome. One of the primary challenges is the upfront cost of EVs, which is still higher than traditional gasoline-powered vehicles. Additionally, many businesses are concerned about the reliability and range of EVs, particularly for long-distance trips. Another challenge facing businesses is the lack of charging infrastructure,

which can make it difficult for EVs to be used for long-distance trips and can limit the practicality of using EVs for fleet management. To overcome this challenge, companies must invest in charging infrastructure or have access to public charging networks. Finally, many businesses are concerned about the availability of EVs and the time it takes to charge them. This can make it difficult for businesses to transition to electrified transportation, particularly if they have a large fleet and need to replace a significant number of vehicles. To overcome this challenge, businesses must carefully plan their transition to EVs and consider factors such as charging infrastructure and vehicle availability when making purchasing decisions.

Conclusion

The European EV market is growing rapidly and presents significant opportunities for businesses looking to incorporate electrified transportation into their fleets. By transitioning to EVs,

The Adaptation of Electrical Vehicle’s

The electric vehicle (EV) market is one of the fastest growing industries in the world, with a surge of interest in clean and sustainable transportation solutions. The United States and China are both major players in this market, with each country having its own unique approach to promoting and advancing the use of EVs.

In the United States, the EV market has been growing steadily in recent years, driven by a combination of government incentives, advancements in technology, and increasing consumer demand. The federal government offers tax credits for the purchase of EVs, and many states have

additional incentives for consumers and businesses to switch to EVs. Additionally, the development of charging infrastructure has been a key factor in promoting the growth of the EV market in the United States. This infrastructure provides consumers with the confidence they need to make the switch to EVs, as they know they will be able to easily recharge their vehicles when needed.

Despite these efforts, the US still lags behind other countries in terms of the overall adoption of EVs. This can be attributed to a number of factors, including the relatively high cost of EVs compared to conventional vehicles, limited model options, and a lack

of consumer awareness about the benefits of EVs. Despite these challenges, the US EV market is expected to continue to grow in the coming years, with many new models from major automakers slated to hit the market in the near future.

In contrast, China has been much more aggressive in promoting the use of EVs, with a focus on both consumer and commercial vehicles. The Chinese government has set ambitious targets for the adoption of EVs, with a goal of electric vehicles to make up 40 percent of new cars sold by 2030 . To support this goal, the government has offered a range of incentives for consumers, including tax credits and

subsidies for the purchase of EVs, as well as investment in charging infrastructure.

In addition to government support, China has also become a major player in the manufacturing of EVs. Many global automakers, including Tesla, have established production facilities in China to take advantage of the country’s growing market. This has led to a significant increase in the number of EVs available in China, with a wide range of models and price points to meet the needs of different consumers.

One of the key factors that has driven the growth of the EV market in China is the country’s focus on clean energy and sustainability. The Chinese government has made it a priority to reduce its dependence on fossil fuels and shift towards clean energy, and the promotion of EVs is a key part of this effort. Additionally, the country’s large population and urbanization have created a growing demand for sustainable transportation solutions, with EVs playing a significant role in meeting this demand.

Despite these efforts, there are still significant challenges to the widespread adoption of EVs in China. One of the biggest challenges is the lack of charging infrastructure, particularly in rural areas. Additionally, the cost of EVs is still relatively high compared to conventional vehicles, and there is a lack of consumer awareness about the benefits of EVs and the charging infrastructure available.

Overall, it is clear that the EV market in the United States and China are at different stages of development, with each country facing its own unique challenges and opportunities. In the United States, the focus is on improving consumer awareness and increasing access to charging infrastructure, while in China the focus is on increasing production and reducing the cost of EVs.

Despite these differences, both countries have a key role to play in advancing the EV market, and their efforts will have a significant impact on the global market. The US has a strong tradition of innovation and entrepreneurship, and its leadership in technology and manufacturing will be

critical in driving the growth of them more accessible to consumers.

In conclusion, advances in the consumer electric vehicle market have been significant in both the United States and China, although each country has taken a different approach to promoting and advancing the use of EVs. The United States has focused on consumer incentives and charging infrastructure, while China has emphasized the importance of clean energy and the growth of the manufacturing sector. Both countries will continue to play a critical role in advancing the EV market, and the outcome of their efforts will have a significant impact on the global market. It is important that both countries continue to work together to overcome the challenges facing the growth of the EV market, such as the lack of charging infrastructure and the high cost of EVs. By doing so, they can help to promote the widespread adoption of clean, sustainable, and efficient transportation solutions that benefit the environment and improve the quality of life for all people.

Electric Vehicle Components Market Is Estimated To Be Valued At US$ 1001.95 Billion By 2032

government subsidies and large-scale domestic production hence increasing the electric vehicle component market. North America, Latin America, and Europe are also estimated to drive the global electric vehicle component market owing to a significant focus on minimizing vehicular emissions leading to the growing use of e-vehicles over the coming ten years. The governments in this region are actively taking steps to improve infrastructure and components. Countries like China and India are set to be dominant market space for EVM components owing to the rise in sales of electric cars.

Recent development

The global electric vehicle component market is valued at USD 148.32 Billion in 2022. The market is further expected to gain size of USD 1001.95 Billion by the year 2032. The market is expected to grow with a CAGR of 21.05% in the forecast period.

Batteries used in electric vehicles come in three types, out of which lithium-ion batteries are quite expensive yet have good performance, lead-acid batteries are the cheapest in price, and nickel metal hydride batteries are moderately priced and have a higher output than lead-acid batteries. Motors used in electric vehicles are DC motors, AC induction motors switched reluctance motors

and permanent magnet synchronous motors.

Electric vehicles originated in the late 18th century. Since then there have been numerous developments in the electric vehicle including the evolution of batteries, no noise pollution at all, and adaption of the technology in cars after bicycles and motorcycles. The use of lightweight material in the manufacturing of e-vehicles gives a new dimension to e-motor racing.

Which region holds the major share of this market?

Asia Pacific leads in the sales of e-vehicles because of countries like India and China owing to benefits such as

The market is characterized by key players which are offering a wide range of EV components that are particularly dedicatedly to the production of passenger cars and electric buses. Companies focused on innovation and technologically driven change. These companies are opting for strategic collaboration and mergers in order to increase business reach. These players are focused on the research and development into electric vehicle components that make these firms stay competitive in the market.

• In 2022 March the Panasonic Corporation announced the setting up of a plant to boost the manufacturing of lithium batteries. Tesla increased their benefits due to Panasonic corporation.

• In 2021 February The introduction of Hyundai in the development of electric vehicle parts enhanced cost effectivity. The collaboration of Kia and Hyundai have been working on EV components in India and are likely to get a major market share in the forecast period.

European Business Magazine caught up with Ben Knoefler

the Chairman and co-founder of KCI Group who we have featured on the Front cover for this Spring edition. We speak to him about sustainability , global supply chains , their 8 lines of strategic business and group ethics.

concern for us even during the high peak of the pandemic situation, the container rates of the main carriers went crazy. A typical reaction in the market as demand was high and availability low. So, we were also sometimes in a situation where we needed to postpone smaller shipments which we ship with the big liners. For some of our clients a delayed shipment is a serious issue as they try to keep storage at their facilities small. So, no deliveries means reducing or even interrupting production. So, as a result of certain delays, which were either accepted to reduce logistical costs or were just created by logistical delays, our clients shifted to reducing their dependency on very timely deliveries by increasing their material storage locally. We’re supporting our clients in these matters with improved contract terms and wherever possible the delivery of larger quantities per lot.

Out of the eight strategic business lines KCi currently operates within, which has seen the most growth and why?

How seriously has the global disruption on supply chains affected KCi Group’s clients, in terms of operations?

KCi is a multinational Group of companies and therefore it’s not easy to describe a general effect on our

business or the operations of our partners and clients in numbers. However, what we can say is that everyone in our sector was facing serious challenges especially because of logistical matters. For example, we’re shipping bulk as well as containers. While bulk shipments were not so much a

KCi Group are very proud to be a conglomerate, meaning we have a very diversified structure and several types of revenue streams. This is a result of our ‘go for it’ business culture. I once read a quote from the LinkedIn Co-Founder, Reid Hoffman - ‘An entrepreneur is someone who jumps off a cliff and builds a plane on the way down’, and this describes KCi’s DNA 110% as I take it to mean: if there’s a challenge, start working on the solution immediately and don’t worry about why it happened.

So, to get back to your question, our Mining and Metals line has definitely seen the biggest development in recent

times. Despite coming from a purely trading background, in this area we understood very early on during the pandemic that in every challenge there is an opportunity. We took a chance to secure supply directly by financing and acquiring mining operations mainly in the southern part of Africa. So, from a major metals trading company we grow to be a mining company, thus being in control of our own supply chain for critical metals. To be fair, we’re still not in a position to supply our clients solely with KCi mined material, however this has

also never been our strategic approach. The idea of acquiring and operating our own mining assets was about securing the bread and butter and being able to help our partners and clients with a very reliable source.

According to Michael Dausab, Director of Namibia 360KCi, KCi Group is able to ‘satisfy the market’ through the opening of mines in Namibia - how was the business able to promote a positive outcome?

(Laughs) I love Michael for his optimism but, to be honest, KCi and its brands are still a very small mining operator, compared to our colleagues from the far east or North America. However, we have been able to create a serious footprint within a very short time frame, which was mainly supported by a friendly regulatory environment and the good reputation we’ve earned in the market. KCi Group is about adjusting quickly to market needs, as I said before, but this doesn’t come with short-term

thinking. We’ve grown with a business culture which I describe as Arabic-German. We commit long-term to our business relationships with trust, as the culture of the UAE taught my team. At the same time, we go into the details as I have learned from being raised in Germany, and making sure there are no surprises. What is true about Michael’s quote is that Namibia is offering our group a lot of opportunities, and we’ve been very active in the past three years and acquired a serious amount of assets. Namibia is

one of the very few untouched places where you can find critical metals like Lithium or Niobium, which are playing a crucial role in the development towards an eco-friendly global society.

Namibia’s government described mining as the ‘best prospect industry sector for this country’what are your thoughts on this?

The government is always right, isn’t it? But seriously, Namibia’s main mining products as of now are high

quality diamonds and uranium. Gold, zinc, salt, and tin follow far behind. Diamonds alone account for almost 28 percent of total exports. These numbers show how important the mining industry has been in the past, this situation will also remain in the future. My personal expectation is that mining will always be a major source of income for Namibia, only the importance of certain metals and minerals may slowly change. For instance, it will be very interesting to see how the numbers for

lithium exports grow during the next five years. The challenge isn’t in the mining, the challenge for Namibia is in the processing of the beneficiation of the material. It’s crucial for Namibia to develop an understanding of expecting its miners to process the material in the country and not just ship it to facilities overseas. This will create jobs and help the Namibian community to grow slowly to a more educated, wealthier, and more socially secure nation. For our company, this is an important topic and one of the reasons why we decided to put a focus on this country, there’s huge potential and the right mindset to achieve change.

How has KCi worked with the Namibian government to lessen the environmental impact of mining in the area? And what is the effect on local communities, whether positive or negative, including work ethics and sustainability?

I won’t claim that KCi are the ‘good guys’, we’re in mining and metals to generate disproportionate profits, and I feel there should be no need to hide this. However, we are very proud that this target comes with respect to each and every one of our environmental responsibilities and, of course, the people who are working with us, be it as a staff member or as a local partner. Looking into our strategic planning and forecasting of the responsible colleagues, I find a lot of things which should be self-evident, but to be honest I don’t know of any similar initiatives trying to bring about change.

What exactly do you mean?

What does ethics and sustainability mean for KCi Group?

KCi Group is Dubai based, so we’ve developed with a healthy amount of the Arabic business mentality, which means we take a certain amount of care of our team, as well as all other people we work with, be it suppliers or clients. So, whether locally or internationally we follow a set of policies, which we wouldn’t describe as ethics, but you could call them that. As you’re asking specifically about

Zeeshan Zilli Executive Group Director KCi Group

Namibia, I’ll give a few examples from our local activities: 1, we hire locally wherever possible, which sadly is not the standard. 2, KCi tries to engage with the local communities on an eye-to-eye level. In cooperation with a local foundation, we take care of elderly people, for example, while in another of ‘our’ towns we recently agreed to help build an elementary school. 3, it’s self-explanatory that we should follow all regulatory requirements regarding the environment, to the smallest detail and openly account for any and all damage we may cause to nature. All in all, our policy is simple and short – to understand that we are guests in this country and need to go the extra mile to show that we’re worthy of being considered a friend and partner.

How important is it for a global business to minimise its impact on the environment, whether on the land, the air, sea, or wildlife?

There’s no doubt about the negative impact on the environment every global business has, we read about it every day in the newspapers. What has changed in recent years is that companies take responsibility for the damage they cause through their operations, and this

is a good development in my opinion. KCi mainly operates in the B2B field, but for our clients it’s becoming more and more of a challenge to satisfy their customers with answers regarding the origin of a product and the environmental footprint it creates. Sustainabiltiy has become a factor when end customers make their purchase decisions and all indicators show that this development will continue, making it ever more important to create a balanced supply chain, reducing emissions and other environmental impacts down to the minimum.

What can you tell us about KCi’s history? What drove the passion behind creating supply chain solutions?

Oh, we’re not creating any supply chain solutions, we’re just committed to our business partners’ success. KCi never aimed to be a provider of logistical solutions or anything like that. We’re just a commodities trading company going the extra mile for our clients. Our focus has always been to deliver products that meet specifications on time, this is exactly where we want to be and what we are good at.

Creating a full ‘supply chain’ is what happens when the market needs to meet your basic idea of what your part should look like. In order to manage the challenges we were facing, we needed to become more integrated, more self-controlled, more reliable. We didn’t want to risk that someday soon we would not be able to deliver and meet our own expectations.

How important is Dubai, UAE, as a promoter of business environments for entrepreneurs young and old, and as a place with supportive regulations?

KCi Group proudly calls Dubai home. Indeed, operating in several countries on five continents we can confirm that we’ve never seen a more business friendly environment. Most people will think our main focus is about taxes, but this is only a very minor aspect considering the unique set of conditions the UAE offers to Emirati as well as expat entrepreneurs. There’s a wide variety here, both culturally and financially, a stable and enabling political system, a supportive financial system, and the simple fact that trade laws are highly favourable for an internationally active organisation.

Geo-political investing, intermediaries and surging forward in 2023

Jeb Buckler, CEO of Startup Giants PLC discusses how VCs and intermediaries can actually use these uncertain times to narrow their focus and source the Founders with the mettle to keep going in the face of all odds in new investment times…

Investment leads, whether they’re VCs or intermediaries, can use this challenging time right now to expedite their process of elimination for the next brilliant Founders to invest and believe in and Founders, if they’re tenacious and confident can use this time to surge forwards.

The good element about tough times is that they always shine a light on the tough people - in business, this means that the highly motivated, tenacious and adaptable Founders will not only survive, they’ll thrive.

Predicting the mindset of new Founders is usually a tough challenge,

however, I believe it’s actually easier in uncertain times as the investor can see the Founder’s attitude to change and adapting to new circumstances.

Founder evidence carries more weight in a recession

As Gary Vaynerchuck once famously said: ‘The most important thing in a recession, is money in the bank.’ People and businesses analyse their spending and tighten up their purse strings to survive a recession. Therefore the marketing, mission and messaging needs to work twice as hard to get

them to open them and to ensure that if they do spend, they spend it with you. Investment spending is no different. Investors are being cautious right now until market valuations are stronger so if a Founder presents themselves with strong letters of intent or sales already for their tech concept, it’s going to make a much stronger statement to potential investors in this climate that people want, need and are prepared to pay for their product or service. I’d say even more so than usual give the overly cautious with budget nature of the current climate.

In terms of investing in startups, valuations are generally lower at the moment which poses better deals for investors. I think to get the investment over the line some of the investors are quite content to see that the founders are growing slightly less aggressively and experiencing growth in a safer, more sustainable way. If the company’s revenue is more consistent and the growth is stable then they view the company as healthy. Once again, management of cashflow and a Founder’s mindset is essential to build trust for investment.

Both investors and Founders can benefit from the mass layoffs

On the flip side this mass layoff actually helps another crisis - the skills shortage. This is actually a very positive and key time for people looking to recruit techies that they might not have had access to without the layoffs. Also, as we saw from the last recession, a number of techies that had been laid off used the opportunity to create their own businesses - Netflix and Air BnB to name a few - without having the constraints of full time work and board members’ vetoing concepts. Whilst people may be grappling with layoffs, it might be a good time for Founders to recruit and think of out of the box ways to attract the techie talent to their door. For example: if they can’t afford the top dollar wages and bonuses, perhaps offer a a lesser salary with equity in the business in exchange for key deliverables or milestones to be met. Having a key techie in place within the business, shows belief in the

concept and is extra brownie points when it comes to investment rounds as it’s more proof that the Founder can do what they promise.

Is AI the main way forwards for 2023?

The sector that I think is going to be really big in 2023 is openAI. The likes of Dall-e and ChatGPT have taken the internet by storm and with Microsoft investing billions into the concepts, I think it’s going to change the way that people create imagery and content. Moving forwards, open AI is really going to propel the largest shift in tech that we’ve seen in a while because building AI into a tech concept or the future of one, is a good way to stay relevant.

It’s all about adapting for the future and changing to the requirements of the economy

With the state of the world at the moment, the days of investing in one singular country are over. Geo-political investing is the way forward to mitigate the risk across multiple countries and continents in order to rally against potential lockdowns, wars and inflations.

Everyone in business has to adapt though and of course we’re no exception. As the search for true and tested Founders continues we’ve adapted how we source and present Founders to investors with the release of our global Atlas Partner Programme and app. Now our tech venture partners around the world, can upload their tech founders to our selection process and if they pass then they’re put forward for demo days and inclusion on our app which is seen by investment leads. Everyone is looking for qualified deals, quickly, we knew ourselves that we’d have to adapt to push forwards and we’re excited to see where this goes. I2023 will be the year for intermediaries to really push forward again because they will have the opportunity to take many more concepts at the earlier stage over to their investors and maintain deal flow on a geo-political, global basis.

The human issue with risk management

By Yasser Khan, Director of Programme Management, at Lexica

Inaccurate forecasting in the programme and project management environment is perhaps the key risk that tends to end up causing the most problems. The larger and more complex the programme of works, the greater the likelihood that the forecasting will be inaccurate – and the greater the downside impact will be of that inaccuracy.

It’s certainly true to say that each project and each programme will have its own specific set of circumstances and there will be myriad reasons why a specific initiative hasn’t performed as forecasted.

It is also, however, true to say that there are patterns and trends that can be looked for and identified. All initiatives are unique, but all initiatives are also the same. If we try to take this more paradigmatic view of projects, project risk and risk forecasting, what do we see?

There are certainly examples in our experience of the health sector of organisations undertaking initiatives with insufficient attention paid to forecasting and risk management. In a sector that is all about prevention and treatment of, often, life threatening conditions, risk should always be at the heart of every initiative.

Cost overruns are caused primarily by cost underestimation, not scope changes. Design errors, change orders, poor site management and not hiring the right team can all be factors, but they are factors that we see occurring time and again – and therefore can be factored into any forecasting.

Hazel Bvuma, Risk Manager at Lexica, says: “We see many of the same issues time and again on the programmes of work we manage – and our experience means we know where to look for risk.”

Research suggests that there are typically three explanations for underestimation of risk:

Technical

The issue here is about insufficient data and poor modelling techniques. The quality and capability of risk management software has increased exponentially over recent years. Yet these improvements appear not to have been matched by a corresponding improvement in forecasting accuracy.

Software capacity is constantly improving, but the outputs of the software rely, ultimately, on human input.

Optimism bias

The HM Treasury Green Book defines optimism bias as “the proven tendency for appraisers to be optimistically biased about key project parameters, including capital costs and

operating costs, project duration, and resulting benefits delivery.”

Essentially, optimism bias is the psychological phenomenon where we have a tendency to look on the bright side of life. It is a natural human phenomenon. And although there does appear to be variation in different cultures, research suggests that we all have this bias.

Zen Marolia, Risk Consultant at Lexica, adds: “We manage optimism bias by trying to quantify the risk utilising Monte Carlo simulations, hence reducing the need to hold large quantities of contingency under the optimism bias umbrella.”

Bias can be addressed in several ways, such as:

• Reviewing forecasts for over optimism

• Applying quality control on a proposal

• Soliciting dissenting views during the estimating process

• Developing a culture of openness around conversations related to risk

Strategic misrepresentation

Strategic misrepresentation is “the tendency to deliberately and systematically distort or misstate information for strategic purposes”, essentially telling untruths in response to incentives. 1

The idea is beautifully illustrated by this revealing quote from the Mayor of San Francisco, Willie Brown, discussing a large cost overrun on the San Francisco Transbay Terminal megaproject in his San Francisco Chronicle column (from 2013):

“News that the Transbay Terminal is something like $300 million over budget should not come as a shock

1 https://medium.com/geekculture/strategic-misrepresentation-the-blind-spot-in-behavioral-economics-8896b078d2c4

to anyone. We always knew the initial estimate was way under the real cost. Just like we never had a real cost for the [San Francisco] Central Subway or the [San Francisco–Oakland] Bay Bridge or any other massive construction project. So, get off it. In the world of civic projects, the first budget is really just a down payment. If people knew the real cost from the start, nothing would ever be approved. The idea is to get going. Start digging a hole and make it so big, there’s no alternative to coming up with the money to fill it in.” 2 Strategic misrepresentation, to some degree, might be addressed through the use of reference class forecasting, as a structured way of trying to predict the future of a project by analysing previous similar projects and their outcomes.

In the final analysis, there needs to be an understanding and agreement

2 https://papers.ssrn.com/sol3/papers. cfm?abstract_id=2424835

around how much risk an organisation is prepared to live with, and how much contingency.

Most important project decisions involve risk taking, and we need to be able to answer questions starting with “how”. These questions include:

• How much risk do we want to take? What is the risk appetite in the organisation?

• How much risk are we taking right now?

• How much risk will we eventually take?

• How do we manage risk?

• How can we maximise gains without incurring losses?

• How much contingency should we maintain?

One of the key aims of any organisation is to maximise stakeholder value. The way in which risk is managed is always going to be a critical part of that critical conversation.

Reinforcing Trusted Advisor Status through Technology Innovation

Unlocking your status

Accountants that have embraced the trusted advisor role understand how important it is to ensure their clients get the best advice and support at every step, but that is hard to control or guarantee when any aspect of the service is outsourced.

Business owners have always relied on their accountants to be their ‘go-to’ for support, advice and help - to be looked after by them. Simply put, accountants are the trusted advisor to their clients and an integral part of their operation. Good accountants will firmly embed themselves into their clients’ businesses, providing comfort that they have an advisor who understands and supports their goals, removes unnecessary hassle from red tape and generally keeps them on track.

That said, there are pockets of service delivery, such as Research and Development (R&D) Tax Claims, that some clients still have to access through third parties because their accountants have not been able to unlock the capability to offer this service in-house – and this can potentially create business risk. Whether clients opt to work with another accountancy

firm or a dedicated R&D Tax Claims consultancy, there is a chance that the accountant could be left picking up the pieces if the claim has been mishandled or worse still, they could lose the relationship to a full-service firm.

With recent research from WhisperClaims reaffirming that accountancy firms are increasingly driven by maximising efficiency, upholding best practice and being recognised as a credible professional by their clients, it is more important than ever to be able to provide a holistic, end-to-end client portfolio – and that includes R&D Tax advice.

Mike Dean, Managing Director of WhisperClaims, explains: “Dedicated cloud-based R&D Tax Claims technology, with training and support on tap, provides accountants with the ability to build and maintain strong client relationships and reinforce their trusted advisor status.”

How can an accountant sign off on a tax return when they have not been involved in the preparation of the R&D Tax Claim? Anyone can call themselves an R&D Tax specialist yet have no accounting background or tax qualifications - and importantly they will not be subject to the same level of regulatory scrutiny as certified accountants. Given the potential risks associated with outsourcing, many accountants are therefore looking to extend the depth and breadth of their service offering – and R&D Tax advice is becoming an increasingly important part of the overall service portfolio. Research carried out by WhisperClaims confirms that accountancy firms’ primary motive for providing R&D Tax advice is based around their role as a trusted advisor to their clients. The research revealed that firms want to be able to manage the end-to-end process without handing over responsibility to a third party; and while the additional revenue stream is obviously welcome, this outcome carries far less weight than the client satisfaction accountants want to be able to offer. For firms to be able to deliver a complete service portfolio for clients, it is vital to establish an efficient, cost-effective and reliable approach to preparing R&D Tax Claims. Just as technology has transformed every other aspect of the accountant’s role over the past decade, dedicated R&D Tax Claims software can empower accountants with a framework and structure that enables them to deliver a high quality service that is robust, compliant, and repeatable.

Embracing technology

SaaS technology, such as some R&D tax software, provides a financially scalable model to support accountants with variable levels of client demand for R&D tax claims preparation. It provides the foundation for a process designed to be used by qualified accountants with a strong understanding of their clients’ businesses and a fundamental understanding of the guidance and what qualifying work looks like.

Deploying technology to support R&D tax service delivery in this way not only facilitates easy collaboration between accountant and client, it also makes data easy to analyse, allowing accountants to demonstrate the viability and worth of a potential claim with confidence and reassurance that the work being put forward meets HMRC expectations. Access to training and expertise alongside the technology enables accountants to build up experience and extend their trusted advisor status.

The other huge benefit of dedicated SaaS R&D tax software is the continual evolution of the technology to keep users within the boundaries of the scheme and up to date with the changes being introduced by HMRC. From risk mitigation measures to the offer of optional claim reviews prior to submission, technology provides robust support to give accountants additional confidence. It should also support the more comprehensive sign off process between client and accountant demanded by HMRC from April 2023, ensuring the name and signature of both the advisor and a senior officer from the client are included in the claim.

Build confidence, access support, mitigate risk

For many accountants it is unlikely that a significant proportion of their client base will be engaging in qualifying R&D activity and therefore may find they are dipping in and out of the process only a handful of times per year. As such, it is really important that the individual(s) responsible for preparing claims have access not

only to technology but also support, even if that is just a sounding board for advice and guidance.

HMRC’s R&D Tax Claim information can be opaque in places, and the ability for an individual to tap into the knowledge and experience of a team that has been involved with thousands of successful claims is hugely valuable. The best R&D tax software on the market is designed by R&D tax experts with hands-on experience of R&D tax consultancy and a solid understanding of the scheme.

Critically, by producing a high-quality output every time an accountant uses such dedicated technology, they can be confident that they are minimising the likelihood of prompting an HMRC investigation. And, even in the event of an HMRC investigation being launched, the structured and consistent process ensures an accountant can be composed and assured in responding to any additional questions HMRC may raise, with the added back up of advice, guidance and support offered by the team of R&D tax experts.

Conclusion

As well as supporting their clients’ business success, accountancy firms have themselves had to consider how they will build more sustainable and profitable businesses in the future. Technology has become crucial to this process. Exploring new technology to add R&D tax advice to their services portfolio allows accountants to meet their goals of maximising efficiency, learning and being recognised as a credible professional by their clients. It also enables them to do so in a robust and repeatable way whilst remaining compliant with the introduction of new and any future changes introduced to the scheme. There is no doubt that HMRC’s more rigorous approach to compliance within the R&D tax relief scheme will see advisors who push the R&D tax relief boundaries facing extra scrutiny and making way for firms committed to good practice to step up as the trusted advisors for their clients’ R&D tax relief claims. Clients deserve the best advice and who better placed to deliver this than their accountants?

What to Know About Changing Your Packaging

Manufacturers need to be careful while using shrinkflation methods to reduce costs: the consequences can be costly.

ensure the weights in packaged goods meet regulatory requirements. This regulatory check, in turn, supports consumer confidence when purchasing new products. By guaranteeing their measurements are accurate, manufacturers can avoid severe consequences when adjusting their standard packaging quantities.

Don’t get caught out!

Communication with customers about the adjustments made is crucial. Otherwise, prices may be deceiving. You only have to look at the case of Toblerone, the Swiss chocolate bar with its characteristic peaks. The chocolate producer reverted to their original shape after putting “too much space” between its peaks, weakening the rights of its trademark. The change was initially made because of higher costs for numerous ingredients, and owner Mondelez said that the exchange rate was not favourable after Brexit.

Shrinkflation is not a new phenomenon: jam jars, coffee containers and crisp packets are just a handful of the products that have downsized while their prices remained the same. To avoid upping costs, manufacturers often add less product, reduce packaging sizes, or use cheaper ingredients. It is a popular method companies use to avoid raising prices that may scare off customers.

Practical considerations

Companies communicate several reasons for making these choices. For example, product innovation in the form of more sustainable packaging or new and improved formulas has cost implications.

On a practical note, introducing new packaging requires investment on the part of manufacturers. The supply chain, design, and packaging often require updates, and the demand for specific materials, such as paper or plastic, also shifts.

There are also regulatory requirements manufacturers must abide by. For instance, when a manufacturer wants to reduce plastic packaging, the machines must be adjusted to ensure no structural overfilling or underfilling. This is crucial in a competitive market and is legally required to ensure consistent, fair pricing of goods. Or for example, if the government introduces legislation on calories or sugars, manufacturers will have to conform to these pre-determined quantities.

Maintaining consumer confidence

Shrinkflation as a solution is often considered because of the sensitivities around increasing prices, with customers potentially tempted to switch to cheaper options if faced with a price hike.

It is therefore necessary that the prices and the contents of the packaging are measured fairly and accurately. Notified bodies such as NMi

The British chocolate maker Cadbury also shrank its multipack chocolate bars in a bid to keep retail prices down. According to the Financial Times, they now contain no more than 200 calories, similar to a handful of carrots. Even prominent businesses have cause to shrink their packaging size. However, learning how to do so effectively while complying with applicable standards is essential.

Price sensitivity to remain

A 2019 study by the office for national statistics has shown that between September 2015 and June 2017, more products shrank (206) rather than increased (79) in size. However, their prices tended not to change. It is, therefore, important for consumers to consider more factors than just the price. Ultimately, it is their decision whether they want to buy the product. The same goes for manufacturers: customer loyalty is not easy to win but very easy to lose. Sensitivity to prices will remain, which means that shrinkflation strategies will remain and accuracy measures will be needed.

New study reveals the most popular stock trading podcasts

Stock trading podcasts that are dominating 2023 and are VITAL to expanding knowledge in all things trading.A new study reveals the most popular stock trading podcasts, with InvestED taking the top spot as the most popular.

The trading world has seen an ever-growing amount of interest over the past few years; worldwide searches for ‘ how to get into trading ’ increased 178%, and searches for ‘trading tips’ have seen a 195% increase over the past five years. Searches for ‘stock trading tips’ have increased by 204% worldwide over the past five years, proving how many people worldwide are interested in delving into the trading world. With the rise in popularity for podcasts

skyrocketing over the past few years too, research was conducted to see which trading podcasts are the most popular.

The research conducted by UK financial services provider CMC Markets explored Google search data by examining the average number of monthly searches for the top stock and trading podcasts, which resulted in a ranking of the most popular stock and trading podcasts.

The most popular podcast in the rankings is InvestED, hosted by three-time New York Times best-selling author and hedge fund manager Phil Town and his daughter Danielle. The pair give advice and cast a light on the best investment strategies used by some of the most influential investors in the world.

Stretching over 400 episodes, the father-daughter duo dominates the stock and trading podcast space, with fans worldwide tuning in to hear their advice. Searches for ‘ InvestED podcast ’ average at 1,600 searches per month worldwide, proving just how popular the podcast is.

The following two podcasts in the rankings receive an average of 1,400 searches per month worldwide, placing them in joint second.

The Animal Spirits podcast explores life, markets and investing and is hosted by Michael Batnick, a managing partner at Ritholtz Wealth Management and Ben Carlson, the author of the wealth management blog A Wealth of Common Sense

Their goal is to share their experiences in the markets and help make finance more understandable and accessible for their listeners. There are currently 454 episodes available for streaming, and with the podcast averaging 1,400 searches per month worldwide, fans are certainly listening to what they have to share.

The Mad Money podcast is hosted by one of Wall Street’s most successful and influential money managers, Jim Cramer. The first episode was released in March 2005, and since then, the podcast has grown into a guide for people worldwide to become better investors. The podcast has a huge number of episodes, so there is plenty of advice on how to dominate the stock market. Cramer helps his listeners navigate the jungle of Wall Street investing in a lightning round where he offers his buy, sell and hold options to callers keen to hear his expertise.

The third most popular stock trading podcast in the rankings is Invest Like The Best, hosted by Patrick O’Shaughnessy. This podcast provides insight into the minds of some of the best business and investment leaders across the globe, highlighting their trial-and-error methods of success and sharing stock market secrets exclusively to the show.

The main goal of this podcast is to guide listeners on how to spend their time and money better, resulting in successful investment outcomes. Searches for ‘ Invest Like the Best podcast’ average 1,000 searches per month worldwide, which secures its third-place spot in the rankings.

The Meb Faber show is the fourth most popular stock trading podcast, averaging 400 monthly searches for the ‘Meb Faber podcast’ worldwide. The podcast aims to help listeners grow through wealth by making smarter investment decisions alongside featuring an array of top investment professionals dishing out their wisdom regarding investments.

The podcast currently stretches to 526 episodes and is hosted by Meb Faber, a co-founder and Chief Investment Officer of Cambria Investment Management. Faber has also written numerous successful books and is a frequent speaker on investment strategies which is why fans worldwide are keen to be regular listeners of the podcast. The following two podcasts in the rankings receive an average of 300 searches per month worldwide, placing them in joint fifth.

The most popular stock trading podcasts

With currently over 1,000 episodes, is Motley Fool Money, a multi-viewpoint podcast hosted by investment genius Chris Hill, in which he is joined by a team of top investment analysts who explore the day’s top headlines in finance and business. The podcast is aimed at business-driven investors and helps to break down the stock market by sharing the perspectives of Hill’s special guests.

We Study Billionaires is currently strung over 650 episodes and has gained over 95 million downloads. Hosted by Stig Broderson, Clay Finck and Trey Lockerbie, We Study Billionaires is the chief podcast of The Investor’s Podcast Network. During the show, the hosts are joined by some of the industry’s most famous financial billionaires, who guide listeners on applying the best strategies and methods in the stock market.

Matthieu Aubry, Co-Founder of Data Analytics Company Matomo Talks to European Business

With Data Privacy Day on January 28th, European Business Magazine caught up with Matthieu Aubry (pictured) , Co-Founder of Matomo, a data analytics company who recently won the W3Tech Traffic Analysis Tool of the Year award, to unpack current data privacy trends for businesses and his journey with the company.

Tell us about Matomo and what sets it apart

Matomo is the leading open-source web analytics solution, allowing users to track and analyse online visits and traffic, trusted by over one million websites across the globe.

In a crowded web analytics space, Matomo stands above the competition by prioritising privacy and empowering users at every level. Users also have complete control over how their data is collected, used, and stored either

via the Cloud or self-hosted. Granting users 100 per cent ownership of their data provides them with the peace of mind that no third parties have access to or are using their data for other purposes – like advertising or direct marketing, for instance.

As our code is open source, it is available for anyone to review, modify, improve, or customise, and this degree of flexibility and transparency is unmatched by proprietary solutions. Matomo also provides unparalleled data accuracy that is unsampled and doesn’t rely on AI to fill gaps. All of our features come together to empower users in an ethical way.

What inspired you to found the company?

I was driven by my passion for software engineering and the internet. Matomo is fuelled by both my enthusiasm for measurement to understand

things with data, as well as my concerns with mass surveillance. When I realised that true privacy was hard to achieve online because web measurement technologies weren’t being built for privacy, I knew something needed to change – and so Matomo was born.

How is data privacy influencing tech companies currently?

We’re starting to see more privacy-focussed technologies emerge, which, in combination with global regulations, is starting to put pressure on existing tech companies to start implementing privacy respecting methods. While some of these methods appear to be smoke and mirrors, others are genuine, and it’s starting to make a difference and giving hope that this movement is creating real change for the future of data privacy.

The recent W3Tech awards was a significant moment for data privacy,

with Matomo beating out the likes of Google Analytics to win the Traffic Analysis Tool of the Year 2022. It highlights the current market shift towards privacy-focused solutions to the benefit of users across the world.

What lessons have you learned as an owner and as a business?

Stay true to your values no matter what. As both an owner, and a business, this has been one of the most important lessons I’ve learned. When Matomo was founded 15 years ago, we could have easily chosen to follow the unethical practices that much larger and more successful technology companies were implementing to generate more sales. But I wouldn’t have been staying true to my values.

It’s been a long-term approach but, ultimately, people want to support

businesses that prioritise values and ethics over short-term gains.

What advice would you give business owners when it comes to privacy?

My advice to business owners is to make sure privacy is top of mind for all of your staff and all of your processes. Start with an audit of your existing tools and practices, then audit the data you store already on your customers and leads, hire a Data Protection Officer and start training staff on privacy best practices.

You’ll gain more trust and greater loyalty with your customers when you prioritise privacy, your business will be better positioned to comply with new regulations, so you’ll avoid fines, and you’ll be better protected from data breaches. It’s a long-term investment in the future of your business, and one that is well worth the effort.

Where do you see the company in the next five years?

In the next five years, we anticipate that Matomo will be used by 2 million websites or around 2.5% of the internet. As for the product itself, it will be more approachable, user-friendly, and feature-rich. For instance, we’ll be introducing more features to make compliance with global privacy regulations even easier for our users.

But for any developments that arise in the coming years, we’ll never lose sight of our community and early adopters. Along our growth journey, we’re ensuring that our community continues to feel supported and valued throughout our expansion. All too often, businesses forget about their community when they start to expand but that’s core to Matomo and will hold true in 2028 as well.

THE GREAT DISCONNECT: WHY UK BUSINESSES ARE OUT OF TOUCH WITH EMPLOYEE STRESS

By Nick Gold

The cost-of-living crisis is driving a wedge between employers and their staff. In a recent research report, we surveyed 500 employers to discover what they believe causes their staff the most stress. Surprisingly, an overwhelming 96% did not believe that employee salaries are a major stressor for staff during the cost-of-living crisis. Instead, they felt major contributors included heavy workloads, long hours, and tight deadlines.

These factors are undoubtedly stressful. But the cost-of-living crisis has dramatically overshadowed them. Staff now struggle to focus on anything beyond the immediate financial pressure they’re under — so as businesses, we must come up with creative solutions.

But companies can’t be expected to solve this problem with pay raises and bonuses. Instead, we must forge deeper connections with staff to help them weather the storm and discover what drives them. After all, when money isn’t such a headline-grabbing issue, staff have other motivations. Instead of letting the “employee vs employer” media narrative play out, let’s talk about actual solutions.

So how can we repair the Great Disconnect?

Why staff stress matters in business

Managing staff stress levels isn’t just a matter of personal well-being. While employees grapple with the day-today impact of inflation and rising costs, employers are focused on business survival.

But neglecting to consider staff stress can have a knock-on effect on your business. Recent research suggests that 52% of UK employees plan to look for a new role that pays more or ask their current employer for a pay rise to get through the cost-of-living crisis. 16% are considering getting a second job

Businesses can’t turn a blind eye to the cost-of-living crisis. We must recognise the impact rising costs are having on our staff, their families, their standard of living, and their mental health — not least because research shows a clear link between poor mental health and productivity.

Team leaders and middle managers have an even bigger burden to bear. As well as managing their own stress levels, they’re the go-to point for their

direct reports. This inevitably takes a toll on their mental health: we’ve all gone to bed worrying about how we can help someone else, often at the expense of our own mental health. So for the sake of our businesses as well as our staff, we need to address these financial issues.

How headlines fuel the Great Disconnect

The media often pits staff and businesses against each other, creating a headline-led furore that makes the problem worse for both parties. As individuals and as business owners, headlines like these can make us feel that we’re letting our employees down; there’s so much more we’d like to do. We must work hard to make

sure employees feel seen and heard. The ideal employer would have the capacity and capability to look after each employee individually, giving them the unique support they need to feel fulfilled and financially stable. But that’s not real life. Instead, businesses must do what they can to create an open, communicative culture and hope staff respond to and make use of these opportunities.

How to repair the Great Disconnect

Subsidised travel, office breakfasts, flexible working policies: all these things can relieve the financial pressure for our staff right now, without compromising the success of our businesses.

But our research also highlights a huge disparity in communication between employees and employers. And this is the key to repairing the Great Disconnect.

Communication isn’t a one-way street. While employers must open up the conversation and ensure employees

feel able to express their concerns, staff must also be prepared to come forward and discuss their problems. With a culture of openness and honesty, you can build stronger relationships with your staff and unearth some of their deeper motivations. When we know what makes our teams tick, we can help them achieve both their personal and professional goals — and ensure they feel listened to. This can be the difference between an employee who leaves and one who stays.

Employee loyalty and the Great Disconnect

People used to work for the same employer for several years, if not their entire working life. But the modern world of work is very different. Many people now expect to change jobs every few years.

So it’s inevitable that some of your staff will eventually seek new opportunities elsewhere, whether it’s to earn more money, or for another reason. Not all your staff will buy into

the bigger picture of your business, no matter how well you project it or which measures you put in place to support them.

But while people may choose to leave, it is possible for them to depart in the right way, with a positive impression of your business. Leaving the door open for them to return in future means you can ultimately reap the rewards of the work you put in, even if you’re not the right fit for them right now.

Understanding your staff on a deeper level also tells you who’s in it for the long haul. And if you’re prepared to put the work in, managing employee stress will become easier. Having a motivated, productive, loyal workforce can take some of the financial pressure off your business.

By tapping into staff motivations and recognising the huge impact of the cost-of-living crisis, you can go beyond traditional employer-employee relationships to enhance your business and start to repair the Great Disconnect.

Pendulum co-founder says WEF can’t stop crypto innovation and adoption

Alexander Wilke, the co-founder of Pendulum, a public blockchain connecting traditional finance with decentralized finance (DeFi), has maintained that influential global organizations such as the World Economic Forum (WEF) cannot hamper the growth of the crypto sector. Wilke highlighted how the crypto industry, through use cases such as DeFi, is on course to disrupt the financial landscape.

On the other hand, with Bitcoin (BTC) prices attempting to rally after significant 2022 losses, the co-founder explained how the maiden cryptocurrency’s price is correlated to macroeconomic factors such as inflation and central bank interest rates. Indeed, he

also talked about the short and longterm impact of events such as bankruptcies in the crypto space. Furthermore, Wilke delved into the progress of the Pendulum roadmap and the main challenges encountered in designing and developing building a decentralized and secure blockchain infrastructure. Lastly, he shared Pendulum’s plans to ensure there is seamless integration with banking networks in 2023 and beyond.

Pendulum is a public blockchain connecting traditional finance with DeFi. For a start, can you give our readers an example of a key real-life use case of your technology?

“Pendulum’s initial key use case is servicing businesses in making instantaneous cross-border payments, including foreign currency exchange (fx). For example, we have talked to a business in Mexico, that is importing goods from Brazil on a regular basis. They usually pay their provider via a classic bank transfer which costs them several 2-3% in fees and would take about 1-2 weeks. One day, the money did not arrive for 2 weeks and they needed to call up their bank with a very high manual effort to finally find out, that the money got stuck with a US bank and it took additional time to unlock it. This lack of transparency is the main problem for those businesses.

In this line, the developments of decentralized automated market makers (AMMs), together with the constantly growing adoption of fully collateralized fiat stablecoins, can solve the main pain points of cross-border payments, reducing costs to below 0.1%, speed up transaction time to a couple of seconds, as well as reducing counterparty and settlement risks.”

What’s the main reason behind your decision to choose the path towards the convergence of forex and DeFi?

“The costs on-chain are much lower because novel-design AMMs can allocate fiat liquidity and are more capital-efficient, resulting in lower slippage and fees for the fx compared to traditional infrastructure. Due to stablecoin standards and the open architecture of DeFi applications, any user can contribute to the liquidity of various currencies, which allows much higher fiat liquidity aggregation.

The transaction finality on modern public proof-of-stake (PoS) blockchains usually takes a couple of seconds, and an exchange transaction is secured by the AMM smart contract that executes the transaction as a payment-versus-payment (PvP). This architecture protects the user’s funds and ensures that the sending of tokens will only be allowed and executed.

When the other currency of the trading pair is received settlement and counterparty risks are solved by a smart contract that can only execute public, auditable software code running on public infrastructure. Next to these direct advantages for the user, on-chain fx implements a level of transparency that has not been seen before. All reserves, all exchange rates, liquidity, and trades are visible and auditable while protecting user privacy. Everyone wins when we bring more fiat and stablecoin use cases on-chain.”

According to Pendulum’s roadmap, it is projected that Q1 of 2023 will be a solid period for the project as you plan to launch the mainnet. Is everything going

as per the plan? What was the hardest and most challenging thing when launching Pendulum, and why?

“Pendulum’s blockchain development started in 2021, and the team’s experience in blockchain development dates back to 2016 when we were already interacting with stablecoins on the Stellar blockchain. I believe we have a very solid plan and product development in place for achieving our goals in Q1 2023 and for 2023 overall.

One of the main challenges is building a decentralized and secure blockchain infrastructure from scratch and distributing it. With the shared security and decentralization we inherit as a Polkadot parachain, Pendulum is starting at a very high level, even better than some of the top layer-1 blockchain projects. Additionally, we,

fortunately, have a very active community helping us to run nodes and collators.

A second challenge is our bridge from Stellar to Pendulum, where we bring high-quality fiat stablecoins into the Polkadot ecosystem. Bridges are always a security challenge, and we had to choose wisely how we deal with the bridge-security. With Spacewalk, we found a solution that comes with a decentralized vault architecture for securing the bridged assets. This decentralized concept is much more resistant to attackers and has just passed an external audit.”

When it comes to the myriad regulatory issues that DeFi platforms have to contend with, could you perhaps elaborate on Pendulum’s approach to compliance and regulation?

“Pendulum serves as an infrastructure working with partners for stablecoins that are compliant in their region. It will try to stay away from experimental algorithmic stablecoins and rather include widely adopted stablecoins or CBDCs. We follow the regulatory landscape pretty closely and are especially keen on developing a public infrastructure that offers the tools needed for financial institutions or corporations to enter DeFi.

For example, we are looking at partnerships with DID providers (e.g., KILT) who are aiming at reusable KYC data preserving user privacy. A second focus area on that topic is data privacy. We are talking to privacy technology providers who could offer decentralized transaction privacy while staying compliant with auditors and respecting the user’s data

ownership. All our compliance initiatives are aimed at wider adoption by users and especially businesses by reducing their risks.”

How will Pendulum ensure that on- and off-ramp requirements for integrations with local banking networks are completely seamless?

“Pendulum will standardize the onand off-ramp interfaces. We come with lots of experience and help from the Stellar ecosystem which has built that for years, and we are aiming at reducing the friction even further, especially with more custom smart contracts and deep wallet integrations. An additional factor is the seamless interoperability between blockchains on Polkadot that helps us natively integrating assets from Tether and Circle into Pendulum.”

Considerable recent attention has been paid to the issue of liquidity in the crypto sector; how does Pendulum deal with this problem in DeFi?

“Initial liquidity on Pendulum will be provided by partners and the community and the blockchain will also have an initial reward programs for liquidity providers in order to achieve the minimum required liquidity for the platform to execute cross-border payments efficiently.

Pendulum is putting a real-world use cases on-chain and we see proof of constantly growing stablecoin transaction volumes and users, independently from other crypto markets or asset prices. In this situation the main differentiation to other projects is, that we can actually achieve a sustainable ecosystem and liquidity growth, reducing the rewards with further adoption.”

Renowned investors like Anthony Scaramucci see the World Economic Forum’s pessimistic position on cryptocurrencies as bullish for the crypto space overall. Do you believe the WEF has or will have such a big impact on cryptocurrency prices?

“A pessimistic position on cryptocurrency prices and being bullish for the crypto space are two different things for me. I believe, looking at the advantages of DeFi regarding transparency, settlement risks and efficiency, that the crypto space is disrupting the financial industry already, today, and will continue doing so in the future.

More and more use cases will be adopted and more intermediaries will be automated by smart contracts, potentially delivering a better service than their centralised counterparts. This cannot be stopped by some people having a different opinion including the WEF. In my opinion an opposition to that overarching DeFi growth can only happen when people are not familiar with DeFi or defending their currently disrupted business. About being bullish about crypto prices, everything apparently has an impact. Big organisations that are trusted within the population can have a negative impact. A bigger impact, I believe, are events like the bankruptcies of some centralised exchanges or crypto projects that might have been questionable from the beginning. Both things will only have a short-term impact and merely slow down adoption as the strategic advantages of DeFi remain substantial.”

Last but not least, after the heavy losses the cryptocurrency market had in 2022, with Bitcoin losing over 60% of its value, do you believe BTC price will have a bullish resurgence throughout 2023?

“If you ask me about speculative opinion without giving investment advice, I must say, that I see a correlation of the BTC price with inflation and central bank interest rates going up and down, so let’s hope for a change there.

Additionally, I think the newsflow around centralised crypto exchanges going bankrupt and users and companies losing money was not helpful in 2022. So, let’s take a more active role here and try trading on DEXes with transparent reserves instead.”

Satellite and Ground Segment Technology The Key To Military Applications

Satellite technology has played a crucial role in military applications for several decades, providing reliable and secure communication capabilities to armed forces around the world. The ground segment technology that supports these satellite systems is an essential component of this infrastructure, enabling the transmission of information between ground stations and satellites. In recent years, there has been a growing need for small and mid-sized European nations to have access to secure defence-grade waveform technologies to protect against emerging security threats. This editorial will focus on the importance of ground segment technology in military satellite communications and how it can be utilized to provide secure defencegrade satellite waveforms to smaller nations.

Ground segment technology plays a vital role in military satellite communications systems. It consists of a network of ground-based equipment, including antennas, modems, amplifiers, and other devices, that support satellite communications. Ground stations act as intermediaries between satellites and end-users, facilitating the transmission of information between them. They are responsible for receiving signals from satellites, decoding them, and relaying them to the appropriate user terminals. Ground segment technology also provides essential functions, such as signal processing, tracking, and control, which are necessary for the successful operation of satellite systems.

Military applications of satellite communications have been instrumental in modern warfare, providing crucial communication capabilities to military personnel in remote locations. Satellites can support various communication modes, including voice,

video, and data, making it possible to communicate securely and reliably with troops deployed in challenging environments. In addition, satellite communications can also be used for intelligence, surveillance, and reconnaissance (ISR) purposes, enabling military forces to gather information about enemy activities and movements. Satellite communications technology has become so critical to military operations that it is now considered a strategic asset. However, the use of satellite communications technology in military applications also raises concerns about security and resiliency. The transmission of sensitive information over satellite systems requires the use of secure encryption and protection mechanisms to prevent unauthorized access, to mitigate (manmade) interference and mask satcom traffic activity. Defence-grade satellite waveforms are used to protect against such security threats, and it is essential for smaller nations to have access to these technologies to protect their military communications from cyber-attacks and other forms of electronic warfare.

The development and deployment of defence-grade waveforms require significant investment in research and development. It involves the creation of encryption algorithms and protection mechanisms that are capable of withstanding sophisticated attacks from hostile actors. These technologies are often developed by large defence contractors and are typically only available to larger nations with significant defence budgets. As a result, smaller nations may struggle to access these technologies and may be more vulnerable to security threats.

Advancements in ground segment technology can provide new opportunities for smaller nations to access secure defence-grade waveforms

and technology. One such example is the use of software-defined (SD) modems in satellite communications.

SD modems are a type of baseband communication system that uses software to define the modem’s operating parameters. They can be reprogrammed and updated remotely, allowing for the deployment of new security measures and encryption algorithms without the need for hardware modifications.

SD modems can also be used to provide waveform diversity, which is the ability to use multiple communication modes simultaneously. By using different waveforms for different types of communication, such as voice and data, it is possible to increase the security of satellite communications. Waveform diversity makes it more difficult for hostile actors to intercept and decode communications, as they would need to have knowledge of multiple encryption algorithms and communication modes.

Another advantage of SD modems is their ability to operate on multiple frequency bands when paired with multi-band/frequency/orbit satellite terminals. By using different frequency bands for different types of communication, it is possible to increase the resilience of satellite systems against jamming and interference. Hostile

actors often use jamming and interference tactics to disrupt satellite communications, but by using multiple frequency band modems and terminals, it is possible to switch between transponders, satellites or constellations to maintain communication capabilities even in the face of such attacks.

Satellite communications have become an integral part of modern warfare, with an ever-increasing number of military applications relying on this technology. With the increasing security threats to small and midsized European nations, the need for secure and accessible defence-grade waveforms (Earth station in the Polar region) has become more critical than ever.

The ground segment of a satellite communication system comprises the infrastructure on the ground that supports satellite communication. This includes the antennas, satellite modems, and network management software. The ground segment technology is critical to ensuring that the satellite communication system operates optimally and provides reliable and secure communication services. In addition to military applications, satellite communications also have significant commercial and civilian applications. These include satellite

television and radio broadcasting, internet connectivity, and disaster management and relief. However, the increased reliance on satellite communication systems has also led to concerns about their vulnerability to cyber-attacks and other security threats. The ground segment of a satellite communication system is particularly vulnerable, as it is located on the ground and therefore more accessible to potential attackers. A cyber-attack on the ground segment can result in the compromise of the entire satellite communication system, which could have significant implications for both military and civilian applications.

To address these security concerns, defence-grade waveforms has been developed. Defence-grade waveforms provide a secure and resilient communication channel that is inaccessible to unauthorized parties. This technology is designed to provide the highest level of security for military communications, ensuring that critical information is protected from potential attacks.

The deployment of defence-grade satellite waveforms are not limited to large countries with significant military budgets. Small and mid-sized European nations can also access this technology, provided that they

have the necessary infrastructure and expertise. One example of a small nation that has successfully deployed defence-grade EPW is Estonia. Estonia, a country of just 1.3 million people, has invested heavily in its defence capabilities in recent years, including the deployment of defencegrade waveforms. The Estonian government has recognized the importance of secure communication channels for its military operations and has therefore made significant investments in this area. The country has developed its own defence-grade waveform, which is now fully operational and provides secure communication services for military applications. The Estonian example shows that small and mid-sized European nations can also access secure defence-grade waveforms, provided that they are willing to make the necessary investments. However, it is not just a matter of investing in the technology itself; these countries also need to have the necessary expertise to operate and maintain the technology. This requires the development of a skilled workforce, which can be a significant challenge for small and mid-sized nations. To address this challenge, European countries could work together to develop a regional approach to defence-grade waveforms. This could involve the pooling of resources and expertise to develop and deploy defence-grade waveforms across the region. By working together, small and mid-sized European nations could access this critical technology without having to make significant investments on their own.

European countries to work together to develop the European Protected Waveform (EPW)

Secure and resilient satellite communications are an important aspect of modern military operations and defense strategy. European countries have recognized the need to work together to develop the European Protected Waveform (EPW) through the European Defence Funds (EDF) initiative.

Bio: Koen Willems

VP, EU Programs & Government Relations, ST Engineering iDirect

Koen Willems holds the position of VP EU Programs and Government Relations at ST Engineering iDirect Europe, a market leader in satellite communication technologies. Koen provides his expertise in EU government programs through the Belgian legal entity (proxy) organisation

ST Engineering iDirect (Europe) CY

NV leveraging the EU footprint and installed base in ground segment satellite networks (www.idirect.net/ st-engineering-idirect-europe). On top of his EU activities, Koen defines and develops ST Engineering iDirect’s global strategy for the government and defense market.

Koen Willems has more than 25 years’ experience working in the technology industry. Before joining ST Engineering iDirect in 2008 he was Product Marketing Manager for Europe at the electronics giant TOSHIBA.

Koen has a master’s degree in English and Scandinavian Languages from Ghent University and a master’s degree in Marketing Strategy and Management from Vlekho Business School.

His expertise in the government and defense satellite market has grown through the involvement in different large (EU) programs as well as frequent interactions with the end-user community and a range of topic-related degrees such as the ‘High Studies in Security and Defence’ degree at the Belgian Royal Higher Institute for Defence, the ‘European Session for Armament Officials’ degree at the French National Institute of Higher Defense and the ‘European Advanced Strategy Course on Security and Defense’ degree at the Egmont Institute, IHEDN and BAKS.

You may know Koen as a GovDef satcom technology evangelist through his regular appearance in editorials in satellite focused publications, white papers and speaking slots at conferences around the world.

Interview Koen Willems

VP, EU Programs & Government Relations, ST Engineering iDirect

Can you tell us more about the European Protected Waveform? What is it and why is it needed?

In today’s military applications supported by satellite communications, high data rates, security, resilience, information assurance and link efficiency technologies are inextricably linked. Military operations are becoming more complex as conflict areas grow more dispersed on a global scale, with a growing need to support a diversity of on-the-move, on-thepause and fixed platforms on land, in

the air and at sea over both GEO and multi-orbit satellite constellations. Current secure and tactical satellite communication waveform solutions are expensive, inefficient and do not allow them to be interoperable amongst multiple vendors.

The European Protected Waveform (EPW) is built around four cornerstones: agile, secure, affordable and interoperable satellite communications. The EPW will be developed in tandem with current and future requirements for military and secure

operations considering upcoming disruptive technologies, EU initiatives such as GovSatCom and IRIS 2 and multi-layered security and resiliency solutions.

As such the EPW is accessible to small, mid-sized, and large European nations seeking to embrace todays and future challenges related to increased throughput demand over satellite, dispersed operations, mobility, and new security threats. Through disruptive innovative technology coming from key stakeholders in EU industry and universities, the EPW addresses the growing demand for European autonomy.

Who are the stakeholders involved in the project?

The stakeholders, a mix of large companies, SMEs and universities come from 11 nations across the continent

In January 2023, a consortium of companies and institutions kicked off the European Protected Waveform project with the end goal of enabling the interoperability of tactical satellite communications. In this interview, Koen Willems, VP, EU Programs & Government Relations, ST Engineering iDirect, explains why this waveform is so important and how it will be delivered.

How long will the project run for?

The Consortium will work together over a period of 39 months to design the waveform and accompanying technologies for resilient and secure satellite communications. It will comprise two phases: the design phase and the certification and productization phase.

How will the project be funded?

including Belgium, Denmark, Germany, Croatia, Italy, France, Luxembourg, Netherlands Poland, Spain and Romania.

The triple helix approach to the program will ensure the waveform benefits from the shared experience and expertise of government, educational institutions, and industry to deliver an end result that is of the highest standard. The project is being led by us at ST Engineering iDirect Europe. The development of waveforms has always been part of our company’s DNA, seeking the best balance between efficiency, agility and security.

The coming together of these key companies and institutions, with their combined knowledge and experience will equip European countries with highly reliable, seamless satcoms to ensure that they can communicate with confidence and security no matter where they operate.

The project will be co-funded by the European Defence Fund and the participating nations.

Why is the project so important?

The EPW will become Europe’s sovereign satcom waveform, future-proofing satellite capabilities for European countries and promoting interoperability across European agencies ensuring its deployment in joint operations. The waveform will be agile, secure and resilient but also affordable so that smaller nations will also be able to take advantage of its capabilities.

Co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the granting authority can be held responsible for them.

Supply chain evolution: How can the consumer electronics industry use data to improve sustainability?

With each passing year, consumers are becoming increasingly concerned about the sustainability of products. According to Simon Kucher’s 2022 Global Sustainability Study, 66% of consumers now rank sustainability as one of the top five drivers behind a purchase decision, up from 50% in 2021. Additionally, 75% of global consumers feel environmental sustainability is as important or more important to them now than it was in 2021.

By Marie McCarthy (pctured) , the Consumer Electronics Revenue Director at Centric Software

The consumer electronics industry lags behind in sustainability compared with other retail sectors. This shift in consumer behavior is particularly challenging for consumer electronics brands, retailers and manufacturers, especially as reports continue to emerge about growing quantities of e-waste and its environmental impact. To address this issue, the consumer electronics industry is taking steps to improve post-use disposal, such as using more ‘closedloop’ materials. In the future, it seems likely that brands will develop products in ways that make it easier to recycle their parts. However, recycling can’t be the whole story. A multifaceted solution is needed to fully address the problem of e-waste and increase sustainability.

Sustainability isn’t just about selecting the right materials - it’s about having the right information, and using it to make informed decisions. How can consumer electronics companies use data to improve sustainability before the product is available to the consumer?

Aim to become digitally innovative

Digitalization and sustainability will both drive future growth, with

digitalization enabling sustainable transformation.

Brands that incorporate a robust digital transformation strategy and deploy it to become more efficient and sustainable will flourish. For example, many companies are beginning to embrace digital twin technology to test their supply chain design and build greater resilience. On the planning side, under-stocking, over-stocking or misallocating inventory can have serious implications for sustainability and profitability. By gaining transparency and data-based insights, brands can better understand what consumer products they should deliver and boost agility to quickly adjust to shifting demand. The benefits of a digital-first approach will be felt at every point along the supply chain, right through to merchandising, marketing and customer service.

Invest in circular supply chains

According to Deloitte , 46% of consumers want more clarity on how to dispose of or recycle old products. By implementing circular supply chains,

brands can promote recycling and reuse of old materials at the end of a product’s lifecycle.

An effective circular supply chain tracks materials throughout the product lifecycle so they can be identified and fed back into the conversion process for reuse, recycling or re-manufacturing. These circular supply chains are not limited to a single company’s value chain. Third-party vendors often recycle and feed the materials into another sector’s value chain as substitutes for virgin raw materials. Successful raw material recapture and reuse at the end of a product’s lifecycle depends heavily on traceability. Digital tools that can effectively track the usage of raw materials throughout the product lifecycle are the key to implementing circular supply chains in any meaningful way.

Transparent workflows sidestep disruption

Improving supply chain visibility empowers consumer electronics brands, retailers and manufacturers to become more sustainable and resilient to risk by predicting and

responding rapidly to events in the supply chain ecosystem.

Using a product lifecycle management (PLM) system such as Centric PLM®, consumer electronics teams can increase workflow transparency, collaborate and co-develop with suppliers, gain early profit margin visibility, speed time to market, leverage buying power to drive down costs and prevent supply chain disruptions from delaying product launches.

PLM enables teams to preserve the quality and compliance of consumer electronics products by storing all live product-related data on one realtime, centrally accessible digital platform. Teams can easily access and update version histories, corrective actions, performance metrics, factory audit data, compliance documentation, regulatory information and differences in supplier costs.

Using collaborative and highly visual digital touch-screen boards such as Centric Visual BoardsTM for SKU rationalization, this can help improve inventory management, reduce warehousing costs, increase profitability and lead to greater customer

satisfaction. This approach allows teams to gain better visibility of product assortments and make datadriven decisions that optimize the supply chain and improve the overall performance of the business.

Use sustainability reporting to inform decision-making

Mandatory ESG reporting is set to begin for qualified European Union (EU) companies on January 1, 2024, requiring companies to provide investors, customers and other stakeholders with better metrics on the environmental impact of business operations. By using digital analysis and reporting tools for sustainability assessments, teams can quickly access and present up-to-date data to inform and guide internal and external reports.

Centric PLM’s sophisticated reporting capabilities provide teams with the ability to make more informed planning and sourcing decisions. With the right tools to track sustainability initiatives, improve visibility, gain insights and understand, measure and analyze environmental impacts, teams are empowered to make conscious

Marie McCarthy is a PLM and portfolio planning enthusiast who brings 25 years of experience in global B2B, technology, enterprise software and SaaS to her work as the Consumer Electronics Revenue Director at Centric Software. Marie works closely with consumer electronics companies of all sizes to deliver end-to-end digital transformation, using Centric’s world-leading PLM and visual planning solutions to revolutionize product creation, sourcing and launch.

and sustainable changes throughout the entire supply chain.

With much competition in the global consumer electronics industry, this provides the opportunity for companies to differentiate themselves with true powerful sustainability initiatives, whilst also elevating brand perceptions.

Accurate, up-to-date supply chain data is the cornerstone of any sustainability strategy. If teams lack insight into raw material availability, costs, supplier issues, environmental impacts, material recyclability and potential supply chain disruptions, it becomes impossible to make effective decisions. Consumers are becoming more aware of sustainability issues in the consumer electronics industry, and it’s up to brands, retailers and manufacturers to step up and embrace digital technology that will deliver truly sustainable products.

Digitally Reframing Legacy Transformation: The Six Factors Necessary to Ensure Successful Digital Transformation

By Ben Snowman, VP Partnerships & Advisory at Mambu

The banking industry is currently undergoing a massive shift towards digitalisation. However, not all banks can fully embrace this change due to the limitations posed by their legacy core banking platforms.

Legacy core banking platforms often find it difficult to adopt the flexibility, agility, and cost effectiveness found in fintech platforms. This can put a

financial strain on banks and make it difficult for them to keep up with the ever-evolving digital landscape.

By exploring the best approach to assisting legacy core banking platforms, we can help banks overcome the challenges posed by their outdated systems and fully embrace the digital future. But what do we need to bear in mind for this to happen successfully?

Pain Points in Financial Services and Legacy Core Banking

The financial services industry faces significant pain points regarding legacy core banking platforms. These outdated systems are afflicted by limited scalability and inadequate security measures.

As the systems are also often built on old technology, it makes it difficult

to integrate with new digital tools and services that are emerging in the financial industry. Not only does this limit the ability of financial institutions to innovate but it also makes them vulnerable to cyber threats, which can lead to significant financial losses.

The World Retail Banking Report 2022, found that 95% of executives believe their current outdated legacy

systems and technological capabilities are unable to fully optimise their data for customer-centric growth strategies. Therefore, it’s no surprise that many financial institutions are considering a move to modern, cloud-based solutions that offer several benefits.

Six Factors to Approach Managing Legacy Transformation Successfully Mambu and PwC have identified six ways banks can optimise the chances of success in their digital transformation efforts:

1. Connect digital strategy with business-led legacy transformation

Banks need to prioritise their business strategy and use technology updates as a tool to achieve it, instead of the other way around. Business leaders should take charge and ensure the project is specifically focused on delivering customer benefits and improving business flexibility from the start.

2. Shape programmes around what new technologies can do – do not just try to replicate legacy capabilities

Banks need to approach their requirements with a fresh perspective. Old systems with many functions make it hard to change the way processes work. By breaking down these functions into smaller components, the traditional approach can be improved. There are tools available that can do all of what the old systems can do along with the new technology offering both flexibility and efficiency.

3. Drive customer movement to the new platform through business-led incentives

Try to avoid complicated and dangerous data transfers whenever possible. The business should think of ways to attract customers to the new platform. To get rid of archaic technology, move customer accounts away from outdated systems.

4. Take advantage of fintech innovators to jumpstart the transformation

It’s important to have the speed to ensure customers utilise the technology and take advantage of it. That’s why it’s crucial to start with a SaaS

digital product system as part of the target design. Attempting to change existing technologies or add new features to an old system may take a long time and add additional risk.

Next-generation banking platforms are designed to launch rapidly. It can be ready to use in just a few months, which is typically 65% faster than traditional systems.

5. Focus on delivering rapid and regular business and customer value

It’s vital to focus on getting practical business benefits regularly to show the progress made from the investments and keep the momentum going. This will also help secure future funding.

6. Adopt a new solution mindset and ways of working

The way things are done in traditional institutions is limited by the technology they use. In today’s world with more data and greater controls, new approaches to product management are needed to create new products quickly, rather than waiting for months.

Legacy infrastructures must make technical changes and thoroughly rethink the bank’s operating model to take advantage of new opportunities.

The Future of Transforming the Legacy Estate

The future of transforming the legacy estate holds enormous potential for companies to prevent significant financial loss. By adopting new technologies, modernising outdated systems, and streamlining processes, organisations can ensure that their operations remain efficient and cost effective.

This will not only help them to stay ahead of the competition but allow them to respond quickly to market changes and secure financial stability. With the right strategy and approach, the transformation of the legacy estate can be a significant step towards a brighter and more prosperous future for any business keen to make the transition.

How We Can Bridge the Gap in Financial Services that 70% of UK Gig Workers Encounter

By Ali Hamriti, CEO and Co-Founder at Rollee

Gig workers are a rapidly growing population. There are around 4.4 million people working for gig economy platforms at least once a week in the UK today who contribute £20bn to the UK economy. We have seen this group of workers multiply with the cost-of-living crisis which has forced 5.2m workers to take on extra jobs in order to alleviate ongoing financial pressures.

A varied stream of incomes comes with several benefits. For one, workers achieve more financial security than they would in a single job. Being made redundant or experiencing burnout can affect any of us, but with several jobs on the roster, the option to fall back on a different venture is a mitigating factor. Another benefit of having several incomes is the ability to work flexibly. The freedom to focus on the line of work which financially or emotionally fulfils you at any given time is a bonus.

Despite the perks offered to those working in the gig economy, many independent workers find themselves experiencing unequal access to financial services such as mortgages or loans. In fact, the findings in The Hidden Cost of Gig Worker Living report from Rollee, reveals that 7 in 10 UK gig workers have been denied access to basic financial products such as a loan, despite having a good credit score.

57% of 1000 gig workers surveyed have had to apply to three or more different lenders before receiving access to a credit card or loan. What’s more, despite knowing they have affordability, 52% of gig workers have missed out on the purchase of a home due to being declined by a bank or building society.

Gig workers are unjustly facing financial exclusion through no fault of their own. Unfortunately, current credit

scoring systems are not set up to consider new work habits such as having multiple records of income and employment data and gig workers bear the cost of this.

Time for Transformation

With the number of independent workers rising, it is imperative that financial providers navigate ways to gain full visibility of gig workers employment data. This is important because a fair assessment of all employment data ensures that gig workers are not excluded from receiving financial services.

Current manual verification operations used by financial institutions are time consuming. They are also painfully clunky, with the inability to efficiently track down different salary data records which are separated and dispersed from one platform or record to another. Independent workers face a long journey of delays, and sometimes barriers, when proving their solvency to financial institutions.  In other cases, financial institutions do not have the time to manually track down all sets of data, which results in gig workers being denied access to financial services and business being lost in the process.

This everyday occurrence is avoidable but financial institutions need an automated and integrated way of doing deep and thorough analysis of

a worker’s activity and earnings. This requires adopting a fully digitised process to gain full visibility and transparency of multiple dispersed data sets in real-time.

Data automation plays a key role in consolidating and standardising the data so that time-consuming manual processes can be left in the past. When embraced, automation saves vital time, money and helps to speed-up decision making for financial providers.

The Cherry on Top

The added benefit of using a single central monitored system to analyse employee data in, is that a greater level of transparency and protection is achieved. The reliability of data is verifiable and so the possibility of fraudulent activity is out of the picture. Another significant benefit when adopting digitised systems is the shift of power, in favour of independent workers. Workers can remain the owner of their data because they can grant permission to share on-demand access to their data without completely parting with the data itself. Finally, looking to a digitised future, there is scope for credit scores to be calculated more productively. Today’s calculations are outdated and don’t consider new work habits and the multiple incomes that independent workers generate. With help from The Financial Conduct Authority (FCA), the current rules that financial institutions must follow to make credit score calculations a fairer assessment to independent workers need to be adapted to suit all workers.

Financial Inclusivity and the Foreseeable Future

As a collective of earners, independent workers are a group that financial institutions must consider within their offerings if they are to remain competitive. This growing market of workers are representative of current times, and it is up to financial providers to upgrade their systems to stay in business with the market of the future.

CIOs – Heading For A New Direction

Inadequate Experience

CIOs have been living on past success for too long. It was a fantastic effort to extend digital workplace strategies at an unprecedented pace but time has moved on and CIOs have been slow to recognise the problems. Employees’ expectation of hybrid working is ubiquitous but each employee’s experience of the digital workplace is unique. They may all use the same core operational platforms, but different Wi-Fi, broadband connections, VPN set-ups, even training, will lead to an individual day to day experience.

According to a  recent Savanta ComRes survey, 89% of employees suffer from poor audio and video quality while working digitally, 53% say this reduces their productivity and 46% find this stressful. In turn, that is creating very significant business

problems associated with digital inequality, employee disconnect and lost productivity.

This is nothing new. The quality of the digital experience has not been reduced by widespread deployment. Or the speed of expansion. The truth is that companies have never delivered a digital environment that provided a good subjective human workplace experience.. It didn’t matter as much when only 20% to 30% of employees’ time was digital –although it was hardly a great experience for those employees. Now, digital represents 60% to 90% of their time and the flaws in the quality, reliability and relevance of that digital employee experience are very evident and very costly.

What is even worse is that the majority of CIOs can’t detect that there is a

problem. HR employee survey data is out of date and irrelevant by the time it has been collated and analysed. The support trouble-ticketing system may give a hint of a problem – but the IT team has no idea if the employee complaining about Microsoft Teams is just reporting a minor glitch with the video or actively seeking alternative employment.

Wrong Data

Why is the employee digital experience so inconsistent when CIOs are awash with IT performance information? Many large businesses routinely collect terabytes of data to capture immediate insight into the way the infrastructure is operating. They know to a millisecond how web pages are responding, where network glitches

are occurring and memory resources becoming strained. The problem is that this information provides zero insight into each employee’s subjective human experience, the day-today realities that influence well-being, retention and productivity. And when a poor digital experience can have a significant financial cost due to poor productivity, staff loss and low morale, this is a problem that directly affects a business’ profitability. Yes, they still need to know whether there is a millisecond delay on a web site, that CPU utilisation is critical or there are security problems, but the urgent insight the CIO needs today is if and how such problems affect an employee’s productivity or engagement. And its quantifiable business impact. The IT department has more engineering data than it can ever use but without any way to understand what that means for individual employee experience, the data has no business value.

Three years ago, CIOs were winning plaudits from the rest of the c-suite for the way the IT team scrambled to deliver a digital workplace within a matter of days. Now, however, the shine has faded badly. While traditional IT performance measures may point to great system uptime, utilisation and performance, the human digital experience is far from ideal. Indeed, the lack of subjective understanding of the individual employee digital experience is  creating serious business problems, from plummeting productivity to staff retention and reputational damage. And yet many CIOs have no idea.

The model has to change. CIOs need to move beyond IT operational measures and gain true insight into the day-to-day human digital experience of every employee. As Dave Page, Founder & Chief Strategy Officer, Actual Experience, explains, when up to 90% of employee time is now digital, CIOs must truly understand and improve every employee’s digital experience – or face the inevitable consequences.

Despite the huge investment in data collection tools, CIOs are flying blind – and that is creating massive business risk. How can CIOs ensure investment is supporting the employee digital experience when they have no insight into or understanding of the current quality of that experience? How can engineers prioritise and deliver remedial activity that makes a real difference? How can the business achieve the bottom-line value associated with better productivity, improved morale and great employee retention that is underpinned by a great digital experience?

Human Experience Insight

CIOs need to change focus, fast. Uptime and system availability and response time are valid measures of system performance but in the world of hybrid working, an inability to prioritise and measure the unique human digital experience will be a fast track to failure.  They need a way to identify and understand the unique digital employee experience – in detail and continuously – from an engagement and productivity perspective.  This insight can reveal digital inequality and highlight those staff clearly struggling with productivity and/ or engagement. Combining this

knowledge with other business metrics, including payroll and recruitment costs, can support a far more insight driven business case for investment, by employee, team, department or the entire business. It can provide the foundation for continual improvement and collaboration with HR to create an employee value proposition that drives additional business value.

Conclusion

Organisations can no longer feel satisfied that every digital employee has access to systems from any location. That is not good enough. The quality and reality of day-to-day employee human experience now sits at the heart of C-Suite metrics; it underpins employee retention and productivity, board level Environmental and Social Governance, as well as Corporate Social Responsibility.

To support the Future of Work, the quality of that digital human experience is increasingly affecting business performance, profitability, and competitive advantage, and CIOs have an absolutely critical role to play. It is time to accept that the current data resources are inadequate. Stop flying blind and actively seek out the insight that will provide a true picture of the digital employee experience.

SMES AND THE CLIMATE CRISIS: HOW TO BUILD A SUSTAINABLE BUSINESS IN 2023

SMEs are key to the global economy, employing  millions of people and contributing to significant economic growth . While the environmental footprint of one small business may not be a big deal, when considered altogether, the impact of the SME economy on the environment becomes far more evident. By

Damian Hanson, Co-Founder & Director of CircleLoop

Small businesses are feeling the pressure to reduce their carbon footprint and build sustainable business models, yet without the resources that larger businesses have, they undoubtedly need support and guidance to do this properly.

The Current Landscape of SMEs and Sustainability

Data from Time Finance has shown that  half of UK SMEs anticipate investing in sustainability in 2023 as pressure mounts for businesses to cut their carbon emissions in line with the Government’s 2050 Net Zero targets. More and more we are seeing SMEs recognise the benefits of adopting sustainable practices.

Setting sustainability goals and measuring progress can help SMEs track their efforts and ensure that they are making progress towards becoming a greener business at every level. Many established environmental bodies can also offer support to businesses, such as helping to identify ways to reduce energy usage or improve recycling practices. Communicating your efforts with customers

and stakeholders ensures there is accountability for green commitments and builds strong external trust in businesses.

New technology also plays a pivotal role in business sustainability. Innovative solutions are emerging all the time that are greener and leaner and can help SMEs find eco-friendly solutions to help reduce their carbon footprint or optimise energy usage.

The Best Ways to Become a Sustainable Business Using Technology

Technology can play a significant role in helping SMEs become more sustainable. Here are some ways that it can help from my experience:

• Use cloud-based tools to reduce paper usage

Cloud-based software can help businesses reduce paper usage by providing a digital alternative to traditional paperwork. Using online tools for document management, storage and collaboration, SMEs can significantly reduce their paper consumption and associated waste while promoting a clutter-free environment.

• Enable remote work to reduce commuting and transport-related emissions

Technology enables remote work, which could reduce the need for employees to commute to an office. This not only reduces transportation-related emissions but could also offer cost savings for SMEs by reducing the need for office space.

• Cloud-based tools are more energy-efficient than traditional software and hardware

Cloud-based tools and services are often more energy-efficient than traditional software and hardware. Remote servers can be optimised for energy efficiency, resulting in lower energy consumption and carbon emissions. You can also recycle any old hardware that may no longer be in use.

• Use highly scalable technology t hat helps prevent over-provisioning and reduces waste Technology is highly scalable, meaning businesses can adjust their usage as their needs change. This helps prevent over-provisioning, reducing waste and energy consumption associated with unnecessary hardware or software. By leveraging technology in these ways, SMEs can become more sustainable, reducing their environmental impact, and improving their bottom line.

Moving Forward…

The progress SMEs continue to make is crucial if the UK is to reach Net Zero emissions by 2050. 93% of SMEs believe sustainability challenges are paramount, and 83% say they have become more important over the last year.  Technology offers numerous opportunities for SMEs to become more sustainable, reduce their carbon footprint and stand out in a competitive market. From cloud-based

tools and software to remote work options, technology can help businesses reduce waste, save money, and improve their environmental impact. In going ‘green’, SMEs can not only make their contribution to a global problem but also show an awareness of the world outside their business that benefits their brand. Customers already expect businesses to make eco commitments, it’s just good business to reflect on how your business can meet those expectations in some way.

WHY ARE API CYBERATTACKS ON THE RISE?

Cyberattacks exploiting APIs are becoming more common. Within the last few months, there have been high-profile breaches caused by API vulnerabilities at Twitter and T-Mobile which have highlighted the damage they can cause. Q and A with Stefan van der Wal, Consulting Solutions Engineer, Application Security at Barracuda

Additionally, APIs tend to lag behind traditional web applications regarding security. This is partly due to the speed at which new APIs can be deployed and the sheer volume most businesses have in use. Over-provisioned and under-secured APIs give threat actors a painless ingress point into the network.

Why has the use of APIs, as a gateway to attack, has grown substantially?

The simplest answer is that there are more APIs out there to exploit. Standardised APIs are valuable tools for critical activities, which means they are being deployed in greater numbers by enterprises pursuing digitalisation.

Public-facing APIs are the greatest issue; any developer can use these to connect their application to other systems. This means they’re widely available for threat actors to investigate and probe for weaknesses.

An API (Application Programming Interface) is an intermediary function that makes it possible for two applications to talk to each other. API-based applications allow for faster and easier software deployments, making them a valuable tool for businesses accelerating their digital transformation programmes. However, APIs present different security challenges to traditional web applications, their development is more dynamic, and their ability to access data from backend servers makes them a prime target for cybercriminals.

We asked Stefan van der Wal, Consulting Solutions Engineer, Application Security at Barracuda , why API attacks are increasing and what organisations should be doing to mitigate the risk.

Why do cybercriminals view APIs as such an advantageous gateway to attack?

APIs can be likened to a high-speed motorway. The road system gets commuters and goods from A to B quickly and conveniently but it could just as easily serve as a getaway route for criminals. APIs are designed for speed and accessibility, making it easy to connect different systems and transfer large volumes of data quickly.

These same features make APIs ideal tools for threat actors intent on maximum gain for minimum effort. Exploiting an API that facilitates data exchange with a mobile banking app could grant attackers an easy route to financial information, for example.

The more systems an organisation tries to connect through APIs, the greater the danger. Industries like healthcare and retail are particularly vulnerable as they usually incorporate many different technologies into their operations. But since greater efficiency and automation is an imperative across business sectors, no industry is free from risk.

Added to this, the cybercriminal community has grown more organised in recent years. Word of new vulnerabilities circulates quickly in dark web forums, and specialist criminals use underground marketplaces to sell exploit opportunities.

What are the biggest factors at play that causes these API-related breaches?

Mostly the speed at which they are deployed and changed. The most straightforward of APIs can be deployed in a matter of minutes. This means it’s easy for development teams to roll them out without necessarily going through all the right checks and processes with the security team.

Visibility is also a challenge. With more APIs in use, it becomes more likely that a business will lose track of where they are located. In research conducted by Barracuda, 44% of respondents stated they did not know where all APIs are deployed in their organisation. APIs that are no longer being updated or monitored are a particularly useful entry point for criminals.

Another factor at play is that useful features of APIs can be exploited in unexpected ways. For example, in the most recent data breach reported by Twitter, attackers appear to have exploited two vulnerable APIs to access the private details of an estimated 200 million accounts. The first step appears to have been a vulnerability in an API that allows users to confirm if email addresses and phone numbers are connected to existing Twitter IDs. Following which, the threat actors seem to have used this,

in conjunction with another API, to scrape public data, enabling them to access email addresses and phone numbers that should have been kept private.

T-Mobile was recently involved in an API breach. Could you talk more about how cybercriminals are able to cause damage on such a large scale?

The T-Mobile case is notable for the volume of data that was stolen. It’s estimated that criminals accessed the personal details of roughly 37 million customer accounts. However, an incident like this could happen to any organisation. Since public-facing APIs are so prevalent, it’s only a matter of time before someone with a hacker mindset finds one and discovers a way to use it for malicious purposes.

My advice for companies is to make sure they have a full inventory of their APIs. Firms must have a clear picture of what tools are in place, so they can fully evaluate any risks. This needs to be a continuous process, so that organisations can identify any vulnerabilities or where data is being shared, possibly without the correct controls.

Are organisations aware of the scale of this problem? If not, what is the best way to ensure this awareness throughout the business?

Although awareness is starting to grow, it is a slow process as many stakeholders still aren’t informed of the risks. I believe the security industry has an obligation to work as trusted advisors, and to point out potential risks.In fact, the security challenges around APIs are no different than the challenges facing other software features.

Business leaders need to encourage developer and security teams to talk to each other about APIs. The two departments can be heavily siloed, with the security team having little idea what the developers are working on. Ideally, they need to be working together closely, with the developers focused on building new things, and the security team looking at potential risks and issues. This would enable security to be baked into the API process to ensure issues are identified and managed before an API goes live or updates are pushed. With proper security processes in place, organisations can enjoy all the benefits of quickly deploying APIs without unnecessarily increasing their risk exposure.

Unlocking the Potential of Engagement Technologies to Deliver Business Value

More and more organisations are failing to get the results that they expect from their investments in engagement technologies. For quite some time now, businesses have been under significant pressure to transform where and how they interact with consumers in order to remain competitive.

As most of us comfortably adopted the ‘new norm’ of hybrid lifestyles, where we shift constantly between physical and digital worlds, seamless experiences have become the expectation, forcing marketing leaders to rethink their interaction strategies and question how effective their technologies are in supporting them.

Wide scale digital transformation has changed the future

Demand is not the only force exacting pressure on marketing leadership, but supply too, with the number of solutions increasing by 24% since 2020, and 9,932 now pitching for attention and business across the eco-system. The acceleration of wide scale digital transformation has led to an increase in the number of new entrants offering niche functionality and industry-specific products and servicesat lower costs than their incumbents. In particular, the significant growth of aggregators – systems that enable greater cohesion of technologies – is enabling more flexible and tailored technology stacks, providing opportunities to combine best-of-breed solutions that meet organisations’ needs more efficiently.

With reports of strong performance and ROIs being touted across business networks and social platforms,

it’s easy to understand why marketing leaders are putting their existing investments under the spotlight. Here, Murray Allan, practice director of customer strategy and engagement at Optima Partners , suggests three ways organisations can ensure their engagement technologies are efficiently delivering value for the business and the returns they expect.

Start with a well-defined customer strategy

Poorly formulated customer strategy can often be a cause of an apparent failure of an engagement technology. Ultimately, even the best technologies will not deliver business value if they’re driving the wrong outcomes.

Effective customer strategies start with a deep understanding of the value opportunity and dynamics of the customer base, and how they change over time. Factors you must consider include:

• Scale

• Reach

• Current and potential value

• Shared personas and behaviours

• Needs and interests

• Motivations and frustrations

Next, you must clearly articulate how to unlock that value through key value drivers – the series of actions and behaviours that generate positive customer and business outcomes.

The fundamental inputs engagement technologies rely on are tactical, datadriven interactions – key value drivers become the objective for these. The more customer outcomes that drive positive business value, the greater the return on investment.

Thoroughly evaluate technology ahead of investment

When it comes to technology, sometimes it can be difficult to separate a bold promise from what is commercially viable. Many organisations find themselves swept up in the publicity and marketplace hype and invest in technologies before fully comprehending how they will be applied and supported in the business. Before investing, evaluate all new technology

against a well-defined set of capability requirements, and link these back to business objectives.

By avoiding scope creep and overinvestment in capabilities that are unnecessary, under-utilised, or too advanced for the business to support, the company can prevent wastage of resources.

Murray said: “Capability requirements should methodically capture not only technical business needs, but

also establish how the technology will be used. Well-crafted requirements will support a more comprehensive vendor evaluation and make it easier to delineate between solutions, which is often the biggest challenge.”

“Before committing and investing, decision-makers should construct a sound cost-benefit analysis to fully understand the levels of risk and reward, and to validate the commercial mechanics involved in how the

technology will deliver value. Examine any tolerances in assumptions, inputs, and probabilities by modelling an array of outcomes and assess the envelope in which the business is willing to operate, making sure any thresholds are valid and realistic targets.”

Technology relies on an efficient operating model

Some organisations place immediate blame on their technologies when things aren’t going to plan, citing gaps or limitations in capability and compatibility as a key driving force for underperformance.

While this can be the case sometimes, in most situations businesses overlook how the technology is being applied, used and supported by the business. As a result, investment in engagement technologies can be cyclical, with ‘ripand-replace’ an all-too-common solution that doesn’t actually treat the problem. This behaviour consumes technical and business resources at great cost, and is likely to create significant technical debt. The cost of behavioural change is often underestimated.

In fact, technology is not always the issue, nor the answer. Any technology must be supported by an efficient operating model to be effective. To ensure it is being optimally applied, fully utilised, and effectively governed within the business, you need to build the correct competencies, content, and workflows around it.

This takes time and must be carefully planned and managed by the right people, which is necessary with any operating model change. Many organisations fail to understand the change required or that has yet to occur around their technologies. As a result, they try to do or expect too much too quickly from them. For the process to be successful, you must invest time to define and plot a realistic capability roadmap to ensure technologies are properly embedded within an organisation’s operating model. By unlocking those efficiencies, a successful implementation can ultimately drive an increased return on investment.