BUSINESS
www.amcham.gr
JANUARY-FEBRUARY 2011 Vol. X | No. 52
innovation
At the Heart of Growth and Progress Strategy + Innovation
Seizing Your Spaces ▼
Real Estate
Finding a Good Real Estate Agent ▼
HR Today
Talent Strategies ▼
Insight
The Law of Requisite Variety ▼
Plus Biz Buzz Names & Faces Trends & Trade Makers
AMERICAN-HELLENIC CHAMBER OF COMMERCE
Top Line Performance, Bottom Line Results
Giuseppe Zorgno, CEO, Chartis Greece
CHAMBER.PRESS ISSN 1109-4990 CODE: 6526
Volume X | Number 52
CHAMBER.PRESS
AMERICAN-HELLENIC CHAMBER OF COMMERCE
contents
AMERICAN-HELLENIC CHAMBER OF COMMERCE
4 THE BOARD 6 HR Today
Talent Strategies in the Middle of an Economic Turmoil by Nicholas Vasilikiotis
8 Chamber News 1 0 Tax Matters I
22
Frontloaded Radical Tax Administration Changes by Stavros Costas
Giuseppe Zorgno, CEO, Chartis Greece, is joined by Paul Canellopoulos, Vice Chairman, to discuss the rapidly evolving insurance industry
1 1 Tax Matters II
A Fiscal Stimulus Package—Proposed Measures by George N. Kerameus
1 2 Tax Matters III
New Tax Measures, KPMG Greece
1 3 Strategy + Innovation Seizing Your Spaces
by Constantinos Stavropoulos
1 4 Names & Faces in the News 1 6 Insight
26
The Law of Requisite Variety
by Alexander Athanassoulas
17
Dr. Andreas Persidis, CEO of Biovista, discusses the rapid advances the company has made, in Greece and the United States
Real Estate
Finding a Good Real Estate Agent—Tips by Nikos Iatrou
1 8 Biz Buzz
Currents in Today’s Business Environment
2 0 In Business
Hard Rock in Glyfada
2 1 Business Matters
The Business of ‘Celebrity’ Moving by Kathy Chrisovergis
2 2 THE INTERVIEW
6
Giuseppe Zorgno, CEO, Chartis Greece and Paul Canellopoulos, Vice Chairman
2 5 Travel USA
Discover America—Arkansas
Nicholas Vasilikiotis, Partner, Stanton Chase Athens, on talent strategies in economic turmoil
2 6 INNOVATION
The Heart of Growth and Progress
3 8 Northern Greece Today— Opportunities and Advantages YES WE CAN!!
by Mike Politopoulos
B u sines s Partners i s the bi monthly maga z ine o f t h e Am e r ica n- He lle nic Chamber of Commerce DIRECTOR Elias Spirtounias e.spirtounias@amcham.gr PUBLISHER & EDITOR Raymond Matera materay@ath.forthnet.gr Please Recycle
ADVERTISING Raymond Matera materay@ath.forthnet.gr DESIGN snack• PRINTING & BINDING A. PSILLIDIS & CO
OWNER American-Hellenic Chamber of Commerce Politia Business Center 109-111 Messoghion Avenue 115 26 Athens Tel: +30 210 699.3559 Fax: +30 210 698.5686-7 E-mail: info@amcham.gr BRANCH OFFICE 47 Vassileos Irakleiou Street 546 23 Thessaloniki Tel: +30 2310 286.453, 225.162 Fax: +30 2310 225.162 E-mail: n.tsavdaroglou@amcham.gr
Fur—A Vital Economic Force
4 0 In Profile
Representing U.S. Firms in Greece
4 1 MarketWatch
The Greek Photovoltaic Market: A Positive Outlook by Stelios Psomas
4 2 Energy
Aegean Power Addresses All Your Electricity Needs
4 4 Trends & Trend Makers 4 6 Business2Business A B2B Toolbox
4 8 Viewpoint
www.ahumanright.org
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS |
DIRECTOR’S DESK
I wish all Business Partners readers a wonderful, creative and happy new year. A year that is forecast to be difficult, with numerous and significant obstacles. At the same time, a very challenging and promising new year because, by overcoming those obstacles, we are establishing the necessary conditions for a new, steady and successful period of growth. In this difficult mission of surpassing our customary abilities we all have a role to play and we should all participate, without exception. Primarily because all of us share, in one way or another, the responsibility of leading our country to the situation that it is today, and secondly because it is a time to demonstrate our patriotism without the anticipation of any direct benefit. We do not have the luxury of time to engage in accusations or contentious behavior, often an insipid and ineffective exercise. This does not mean that we should forget or overlook important offenses and critical mistakes that have occurred. No, a rightful and egalitarian society cannot do this. However, we should not spend our energy and efforts on a zero sum game that leads to dead end processes. Instead we should begin moving forward and steadily accelerating our efforts to continuously strive for new, feasible and measurable goals, acquiring more productive and more efficient rhythms that, today, our country needs more than ever before. This year, the Hellenic-American Chamber is scheduling a series of interesting and important initiatives and activities in various sectors, aiming to showcase practices and proposals that ensure a better environment, which promotes the elevation of education, innovation and entrepreneurship. With the full support of our members, the important work of our Committees, and the creative synergies with other institutions, we are designing a program of selected, targeted actions to open constructive discussions and focus on interesting subjects with which the world economy and modern businesses deal today. Our objective is to sensitize, activate and mobilize as many people we can that will result in growth and development in all those sectors in which our country exhibits comparative advantages, advantages that should be capitalized on to everyone’s benefit. Elias Spirtounias Executive Director
The American-Hellenic Chamber of Commerce A Dynamic, Proactive Chamber The American-Hellenic Chamber of Commerce was established in 1932 and is one of the largest, most active, and dynamic American Chambers in Europe. Virtually all American companies that do business in Greece and Greek companies that engage in trade with the United States are members of the Chamber. The Chamber's membership is comprised of more than 1,000 proactive companies that seek to expand business horizons, create new business partnerships, and take advantage of trade and investment opportunities in today's global economy. The American-Hellenic Chamber of Commerce is an active mem-
| BUSINESS PARTNERS | JANUARY-FEBRUARY 2011
ber of the U.S. Chamber of Commerce in Washington D.C. and the European Council of American Chambers of Commerce (ECACC).
Mission Statement The American-Hellenic Chamber of Commerce strives for continuous improvement of American-Hellenic commercial and financial relations, through increased membership and through the organization of top-quality events, exhibitions, fora, seminars, and congresses on both sides of the Atlantic.
American-Hellenic Chamber of Commerce Executive Committee Gramatidis Yanos President | BAHAS, GRAMATIDIS & PARTNERS Kyriacou Marios T. Vice President | KPMG CERTIFIED AUDITORS A.E. Bakatselos Nikolas Vice President | PYRAMIS METALLOURGIA A.E. Karayannis Angelos Secretary General | KARAYANNIS K. GROUP OF COMPANIES Panayotopoulos Litsa Treasurer | M2M SOLUTIONS CONSULTING SERVICES
Auditors Committee
Members: Felonis Athanassios, Sabatakakis Kyriakos, Papakosmas Dimitrios | Coordinator: Hadjianagnostou Andriana
Construction and Real Estate Committee
Members: Alexopoulos Charis, Andritsos Dimitris, Charagionis Theodore, Dimakopoulos Alexandros, Sarantopoulos Edward, Spanos Elias, Vassos Alexandros, Vrettakos Dimitris | Coordinator: Constantinidou Dafni
Corporate Governance Committee
Anastassopoulos Simos Counselor | PETSIAVAS N. S.A.
Chair: Papacostopoulos Constantinos | Members: Alexandris Spyros, Charalambous Yiangos, Dimou Ioannis, Petalas Apostolos, Siamishis Andreas, Theodoulidou Maria | Coordinator: Constantinidou Dafni
Bacacos George Counselor | BACACOS P. CHEMICAL & PHARMACEUTICAL
Corporate Social Responsibility Committee
PRODUCTS CO. S.A.
Chair: Stavridis Stelios | Members: Alexiou Maria, Lolas Vassilis, Papademetriou Pakis, Psyrra Irene, Vrachatis Ioannis | Coordinator: Boyatzis Angela
Charalambous Odysseas Counselor | CISCO SYSTEMS HELLAS S.A.
Environment & Energy Committee
Papadopoulos Thanos Counselor | CHEVELLAS S.A. Spirtounias Elias Executive Director
Members: Aloupis Constantine, Bakouris Konstantinos, Karayannis Angelos, Manos Alexandros, Melissanidis Dimitris, Mytilineos Evangelos, Nomikos Elias, Papadimitriou Spiros, Papavasileiou Athanasios, Peristeris George, Stefanakis Ioannis, Yannopoulos Sotiris, Yiannopoulos Emil | Coordinator: Dikeoulia Angeliki
Express Committee
Chair: Mavropoulos Michael | Members: Alevizou Christina, Ieremias Emmanuel, Karayannis Angelos, Ungerer Frank-Uwe | Coordinator: Mamali Georgia
Greek Economy Conference Committee
Board of Directors Antoniades Vassilis | THE BOSTON CONSULTING GROUP Antonopoulos Constantinos | INTRALOT S.A. - INTEGRATED LOTTERY SYSTEMS AND SERVICES Canellopoulos Paul | CHARTIS GREECE S.A. Costas Stavros | Economist Costopoulos Alexandros | FORESIGHT STRATEGY & COMMUNICATIONS Costopoulos John | HELLENIC PETROLEUM S.A. David George | COCA-COLA HELLENIC BOTTLING COMPANY S.A. Filiotis Dionysios | PHARMASERVE-LILLY SACI Frangou Angeliki | NAVIOS MARITIME HOLDINGS INC.
Chair: Kyriacou Marios | Members: Antoniades Vassilis, Anastassopoulos Simos, Bacacos George, Yannopoulos Sotiris | Coordinator: Dikeoulia Angeliki
Innovation and Education Committee
Chair: Panayotopoulos Litsa | Members: Charalambous Odysseas, Giourelis Stefanos, Kollas John, Makios Vassilis, Makridakis Spyros, Patakiouti Maria, Skoura Alexandra, Tsangos Christos | Coordinator: Tzagaroulakis Katerina
Insurance, Social Security & Labor Matters Committee
Chair: Kremalis Konstantinos | Members: Canellopoulos Paul, Rouvas Andreas, Koussia (Dr.) Venetia, Lisseos Panayotis, Mazarakis Dimitrios, Panorios Manos, Pelidis Manos, Sarantopoulos Dimitris | Coordinator: Tseritzoglou Voula
IPR Committee
Members: Boscopoulos Paris, Galanopoulou Katerina, Makris Antonis, Ross Daniel, Zachou Dora | Coordinator: Constantinidou Dafni
Leadership Committee
Chair: Miropoulos Artemis | Members: Griveas Polychronis, Hofmann Sybil, Katsivelis Pavlos, Kerastaris Antonis, Kofinas Kyriakos, Olympios Spyros, Paraskevaides Stavros, Saracakis Alexandros | Coordinator: Ritana Xidou
Northern Greece Committee
Kartsanis Georgia | CEO CLUBS GREECE
Chair: Bakatselos Nikolas | Members: Accas Ioannis, Gigilinis Alexandros, Katsaros George, Kokorotsikos Paris, Kouides Antonis, Koukountzos Konstantinos, Mavroudis Theodore, Pylarinos Othon, Symeonides Dimitris | Coordinator: Tsavdaroglou Nikos
Khan Pheroze | BRISTOL-MYERS SQUIBB A.E.
Pharmaceutical Committee
Karella Katerina | PFIZER HELLAS S.A.
Kibaridis Stelios | ALAPIS S.A. Kokorotsikos Paris | EUROCONSULTANTS S.A. Kosmatos Makis | JOHNSON & JOHNSON HELLAS S.A. Kouides Antonis | B.E.R.M.A. A.E. Koutsoureli Eftychia | INFO-QUEST S.A. Kyriakides John | KYRIAKIDES GEORGOPOULOS & DANIOLOS ISSAIAS LAW FIRM Mamidaki Eleftheria | MAMIDOIL JETOIL PETROLEUM COMPANY S.A. Manos Alexandros | PIRAEUS BANK S.A. Papalexopoulos Dimitri | TITAN CEMENT COMPANY S.A. Passaris Despina | PROCTER & GAMBLE HELLAS LTD. Plessas Dennys | LOCKHEED MARTIN (INTERNATIONAL) S.A. Priamou John | U.S. COMMERCIAL COUNSELOR (RET.) Saracakis John D. | SARACAKIS BROTHERS S.A. Stavridis Stelios | PISCINES IDEALES A.E. Symeonides Dimitris | MEVGAL S.A. DAIRY PRODUCT INDUSTRY Synghelides Polychronis | CHRYSLER JEEP DODGE HELLAS S.A. Tamvakakis Apostolos | NATIONAL BANK OF GREECE S.A. Yiannopoulos Emil | PwC (PricewaterhouseCoopers Business Solutions SA) Zeritis Panos | THRACE PAPER MILL S.A.
| BUSINESS PARTNERS | JANUARY-FEBRUARY 2011
Chair: Karella Katerina | Vice Chair: Filiotis Dionysios | Members: Apostolides Pascal, Boscopoulos Paris, Frouzis Konstantinos, Gerassopoulos Marcos, Karagiannoglou Stylianos, Katzourakis George, Kefalas Nikos, Khan Pheroze, Pateraki Evangelia | Coordinator: Tseritzoglou Voula
Programming & Planning Committee (North Greece)
Members: Accas Ioannis, Alexopoulos Charis, Antoniadis Christodoulos, Economou Anastasia, Efetzis Vassilios, Kokorotsikos Paris, Kouides Antonis, Kouimtzis Thanassis, Lakassas Dimitrios, Mamidakis Alexandros, Meimaris Ignatios, Papageorgiou Constantinos, Thomaidis Vasilis, Tsaras Ioannis, Ziambras Ioannis | Coordinator: Tsavdaroglou Nikos
Public Affairs Committee
Members: Anastassopoulos Simos, Kyriacou Marios, Papadopoulos Thanos | Coordinator: Xidou Ritana
Strategic Planning Committee
Members: Costopoulos Alexandros, Gramatidis Yanos, Priamou John, Stavridis Stelios | Coordinator: Mamali Georgia
Taxation Committee
Chair: Kostas Stavros | Members: Altiparmakis Christos, Ampeliotis Evaggelos, Anastasiadis Charalampos, Antoniou Vassilios, Desipris Antonis, Doucas Spiros, Gigantes Stavros, Gika Efstathia, Ioannidou Maria, Kerameus George, Laskaratos Panagiotis, Mavraganis George, Melemenis Ioannis, Mitsios Stefanos, Nomikos Vassilis, Samothrakis George, Sarafoglou Gerassimos, Savvaidou Katerina, Sfakakis Konstantinos, Spyriouni Litsa, Stavrides Bill, Stavropoulos Ioannis, Theofilides George, Trakadi Maria, Tsakonas Yiannis | Coordinator: Tzagaroulakis Katerina
Tourism Committee
Chair: Stylianopoulos Andreas | Members: Ananiadis Tim, Anglos John, Argiri Byron, Ikkos Aris, Koutsivitis Stylianos, Marriott Carol, Peresiadis Kostas | Coordinator: Dikeoulia Angeliki
Women in Business Committee
Chair: Kartsanis Georgia | Members: Adamopoulou Efi, Athanassoulas Elena, Dimou-Lampadari Maria, Papakonstantinou Ioanna, Rossou Efi, Sideri Anastasia, Tarou Iphigenia | Coordinator: Boyatzis Angela
C.Ad.01/07
Foh / 2+
HR Today
by Nicholas Vasilikiotis Partner, Stanton Chase Athens
Talent Strategies in the Middle of an Economic Turmoil
T
he pessimistic and short term anticipation of the situation states that 2011—at least—will be a very tough year, when leaders and managers will have to draw very difficult decisions, including cost cutting strategies, recruitment freezes, layoffs, salary reductions etc. On the other hand there are a lot of business opinion leaders claiming that it is absolutely critical for business executives to manage the demand for top talented people in the context of this unfavorable climate so that they meet their future objectives. During the last months there is a common practice for CEOs and GMs to put talent management issues on the top of their agenda proving simultaneously that Human Capital is an essential part of their overall business success. A number of issues need answers: ❚ What are we going to do with excess people? ❚ Is it better to proceed to layoffs or is it better to suggest salary reductions? ❚ What are the most important and crucial roles in our organization? ❚ How are we going to retain top performers? ❚ Are we ready to manage change management needs as imposed from a business
| BUSINESS PARTNERS | JANUARY-FEBRUARY 2011
reorganization strategy? ❚ How are we going to enhance job security and at the same time proceed to cost cutting strategies? ❚ What do we have to do better in order to enhance communication and information flow so that everybody feels responsible and accountable about the overall business performance? ❚ And finally what strategies must we implement in order to ensure business sustainability and survival? In any case all these questions are some of the “hot topics” which require brave decisions and quick actions. But, do leaders miss something when dealing with this agenda? When facing difficult situations we underestimate the fact that after a couple of years any bad memory will be history. So, apart from dealing with the present and how we are go-
In the middle of an unstable economic environment where Greece is striving to survive from one of the most severe and deep financial recessions that the nation has ever faced, one of the biggest challenges that business leaders have to face is how to formulate their talent strategies. ing to overcome the current difficulties, we also have to plan for the future and become ready to confront the new challenges. In terms of talent management, this means that leaders have also to be ready to invest in new talented people and man their workforce with properly and professionally selected executives—who might be considered as a luxury at the time being—but absolutely necessary after the time of recovery. Nowadays, we are very often meeting executives who—either because they feel insecure in their current positions and would be willing to follow a very well structured vision, or they are temporarily found out of market as a result of a cost cutting strategy—would consider with great enthusiasm a career shift provided that there is in place a concrete plan and a reachable target. And we have always to remember: Crisis create opportunities especially for companies which in a different financial situation would not be able to attract talented people from their “comfort zone”.
Nicholas Vasilikiotis is a Partner specialized in the Industrial, Energy, Technology, Logistics & Transportation sectors. Having joined Stanton Chase International in November 2010, Nicholas possesses more than 12 years of working experience both in consulting sector (Head of Executive Search Services in Deloitte) and in major industrial and retail companies, covering the fields of organizational development, business operations excellence and implementation of ERP systems. He holds a bachelor degree in Mathematics from the Aristotle University of Thessaloniki and an MBA from the Cyprus Institute of Management.
H Bristol-Myers Squibb είναι μια παγκόσμια βιοφαρμακευτική εταιρεία με αποστολή της να ανακαλύπτει, να αναπτύσσει και να παρέχει καινοτόμα φάρμακα που συμβάλλουν στην αποτελεσματική αντιμετώπιση σοβαρών ασθενειών.
Together we can prevail.
Together we can prevail. www.bms-greece.gr Bristol-Myers Squibb A.E. Αττικής 49-53 & Προποντίδος 2, Τ.Κ. 152 35 Βριλήσσια, Αττική ΤΘ 63883 - Bριλήσσια, Τ.Κ. 152 03, Αττική Τηλ.: 210 6074 300 & 210 6074 400, Φαξ: 210 6074 333, ΑΡ.Μ.Α.Ε. 62772/01ΑΤ/Β/07/148
CHAMBER NEWS
Greek Economy Conference
Prime Minister George Papandreou
Minister George Papaconstantinou
Minister Mihalis Chrisohoidis
Ambassador Daniel Bennett Smith
New Democracy President Antonis Samaris
Minister Yiannis Ragoussis
Minister Anna Diamantopoulou
Minister Pavlos Geroulanos
Minister Louka Katseli
Minister Dimitris Reppas
Minister Kostas Skandalidis
President Yanos Gramatidis
Vassilis Milionis, Aegean Power
Alexandros Manos, Piraeus Bank
Antonis Stergiotis,Club Hotel Loutraki
Nikolaos Peppas, SAS
On November 29-30 the Chamber held its 21st Greek Economy Conference, a flagship event that brings together the pubic and private sectors to discuss the course of the Greek economy. The 21st Conference hosted the Prime Minister, Ministers, the Leader of the Opposi-
| BUSINESS PARTNERS | JANUARY-FEBRUARY 2011
tion, the U.S. Ambassador as well as leading political figures, economists, analysts, and businesspeople, With the theme, Rebuilding Greek Credibility, the conference focused on Greece as it attempts to emerge from its most serious financial crisis in modern history.
Antonis Samaras in Thessaloniki In Thessaloniki, five bilateral chambers—American-Hellenic, British-Hellenic, French-Hellenic, German-Hellenic, and ItalianHellenic Chamber, co-hosted a dinner on December 13 at the Hyatt Regency Hotel with keynote speaker Antonis Samaras, Leader of the Opposition and President of New Democracy Party. The event was attended by several hundred businessmen, politicians, Members of Parliament, local officials, diplomats and academics. Mr. Samaras focused on the revival of the Greek economy which, he said, could be facilitated under a number of measures different than those of the memorandum, which he regards as leading Greece to a dead end. The imposition of lower tax rates, decreased social security contributions, reduction of bureaucracy and public waste are some of the measures that New Democracy promotes.
Thanksgiving Luncheon The Chamber and the International Propeller Club of the United States, International Port of Piraeus, hosted Thanksgiving Luncheon on Sunday, November 21, 2010, at the Jockey’s Country Club. More than 300 guests enjoyed a traditional Thanksgiving luncheon in the country club setting. U.S. Ambassador Daniel Bennett Smith was guest of honor.
Chamber Hosts Poul Thomsen Drastic social insurance reform, major changes in the job market, deregulation of all professions and reform of public utilities were the top proposals cited by Poul Thomsen, the IMF’s Deputy Director Europe Department and Mission’s Chief for Greece) Poul Thomsen, who addressed an event hosted by the Chamber on December 8 at the Athens Hilton. Mr. Thomsen clarified that Greece’s efforts are still at an early stage, “which is the hardest”, and said that until now all goals have been met. However, he insisted that the huge public sector will have to be reduced in size and called for deep structural reforms.
Deputy Minister Yiannis Magriotis
Public Companies— Conference in Thessaloniki The Chamber held a conference on Public Infrastructure and Service Development on December 1 in Thessaloniki. The event, which brought together members of the business community of Northern Greece with the heads of local public companies and utilities, was held at a time when public companies must put into place new training and strategic plans for the 2011-13 period.
Nikolas Bakatselos, Thessaloniki Mayor Yiannis Boutaris, Yanos Gramatidis
Chamber Calendar February Athens, Launching of MIW (Make Innovation Work) contest February 22 Athens, Seminar for AMCHAM & AHEI members “How to do Business in U.S.” March 10 Athens, 7th Taxation Conference March 15 Athens, Hilton Athens, 2nd WIB Personal Branding Seminar & Workshop March Thessaloniki, Innovation & Education Conference March Athens, 2nd IPR Conference
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS |
Tax Matters
by Stavros Costas a member of the Chamber Board and Chairman of the Chamber Taxation Committee
Reforms of Economic and Financial Policies Dictated by the Memorandum with Troika
Frontloaded Radical Tax Administration Changes Economic Policies in the spirit of the MNIMONIO (Memorandum) Amid Greece’s serious economic downturn and an extremely weaken fiscal position the Troika Program provides for a frontloaded multiyear mixture of short- and mediumterm fiscal, financial and structural policies to reorient the Greek Economy. The objectives of such policies are anchored in the mandate of correcting fiscal and external imbalances, while reestablishing confidence and sustainability. Progress is systematically observed and evaluated based on quantitative criteria Targets: ❚ Correcting fiscal imbalances ❚ Placing debt on a medium term downward path ❚ Maintaining banking sector stability ❚ Restoring competitiveness ❚ Boosting medium term production capacity
Tax Administration Modernization In the spirit of the Memorandum, the mix of fiscal adjustments are considered the cornerstone of the program. Among these are the Tax Reformation Measures which have been already been acted in 2010 (progressive taxation, reduction of exemptions, broadening VAT basis), and the tax administration restructuring measures expected to implemented in 2011, under the Mini Tax Bill underway.
International experience has taught that tax administration reforms of this kind are a complex, long-term processes, which require deep diagnostic tools and the formulating of appropriate reform strategies. In other words, there is a need to define what to change, design practical and manageable steps, and implement the restoration strategies in a controllable time frame. As such, apart from the effort need to be invested on the side of the competent Administration Services, reliable technical assistance is needed, which is expected to be provided by the IMF. Frontiers to be tackled by this major project, cover taxation auditing functions and collection mechanisms: Short Term ❚ Safeguarding revenue from largest taxpayers ❚ Auditing enforcement of high wealth individuals/self employed ❚ Concentrating on high risk tax evasion ❚ Prosecuting the worst offenders ❚ Enforcing VAT filing and payment ❚ Recovering tax arrears Medium term ❚ Implementing structural reforms in key tax compliance ❚ Strengthening filing and payment control payment ❚ Developing taxpayer service capacity ❚ Improving enforcement in audit operations ❚ Introducing risk based approaches ❚ Building HQ’s strategic management
10 | BUSINESS PARTNERS | JANUARY-FEBRUARY 2011
❚ Improving customs administration as well These changes are extremely important. As such, the business community is anxiously waiting for the draft Law dealing with theses measures. More important, however, the business community is concerned about the improvement of the quality of tax audits which, to date, have concentrated on cash collection rather than verification of tax compliance, thus inflating the post-audit effective tax rate. As has been declared in many instances, strict measures with anti-evasion plans, to restore tax discipline, are always welcomed by the healthy business community. What we must avoid is to “burn the green with the dry” as the Greek saying goes. In line with this major challenge, the motto should be “Business voice taken into account.” It is imperative that the voice of healthy business is positively considered in the policy making process, through real deliberation, on the ground that it presents its interests to the State and the public, and can help to trigger high quality improvements in taxation legislation. The Chamber Taxation Committee has established a dialogue with the competent authorities at the Ministry of Finance, perspectives expected to be integrated in the 7th Taxation Conference – Athens 2011, planned for March 10. The focus being to communicate a comprehensive set of sound proposals, capitalizing consistently on the principle: “cooperation equals the sharing of knowledge.”
by George N. Kerameus Lawyer, Partner, KPP Law (Kerameus, Papademetriou, Papadopoulos Law Offices)
A Fiscal Stimulus Package—
The Greek economy is currently in distress. In order for such status to be reversed, numerous, fundamental or targeted, measures need to be taken by the Greek Government.
Proposed Measures
I
n the field of taxation, such measures should tablishment is created in the above case. favor entrepreneurship, competitiveness ❚ D ebt waivers The Greek market is in need and development, combating at the same of an exemption from corporate income time tax evasion and bureaucracy. tax of any income arising at the level of The following few examples of recent tax the debtor from a (distressed) debt waivdevelopments in the international tax field, er, at least when such waiver takes place which were mainly adopted to address the within the framework of a wider debt or global financial crisis, could serve as a benchcorporate restructuring (Luxemburg is a mark in the current and future decision makgood example of a detailed and favorable ing process of Greek tax authorities: tax system of debt restructurings). ❚G lobal Tax Cooperation Greece has to ❚ I nterest Deductibility Following the exclosely follow the international progress ample of Germany, Greece needs to temachieved in the realization of cooperation porarily mitigate limitations on interest between tax authorities: this will assist the deduction, such as the thin capitalizacountry in improving its internal tax audit tion provisions in order to attract foreign performance and furthermore in regainfunds, which would finance corporate acing the lost trust of its foreign partners. tivities in Greece; it is worthwhile to men❚T ax Certainty Pursuant to an EU study, tion that a very interesting discussion is foreign venture capitalists (VC) are hesicurrently ongoing at an international level tant to proceed with investments in other in respect of corporate taxation and fiEU member states mainly due to the amnancing neutrality (see Hemmelgarn and biguity of whether the Manager of the VC fund creates a permanent establishment in the foreign country where the investment, as well as the Manager, are located; in or- Measures should favor der to offer even the least of entrepreneurship, certainty required for investcompetitiveness and ments, Greek tax authorities can take the lead and development, combating ... confirm, as proposed by the tax evasion and bureaucracy study, that no permanent es-
Nicodeme or Devereux and de Mooij). ❚T ax Losses The current system of tax losses has to become more business friendly, first by remaining immune from any merger or wider corporate reorganization (a related promise has been given by the Government by virtue of the 2011 budget bill) and second by extending the five years period within which Greek companies are entitled to carry forward losses ❚V AT and Other Reductions: As per the proposals of the European Economic Recovery Plan (COM(2008) 800) and following the UK example, temporary reductions in the level of the standard rate of VAT can be introduced as a means of supporting consumption; this proposal should not be conceived as unrealistic due to existing budgetary constraints, since there are strong indications that recent increases to the VAT rate in Greece have not resulted to the expected increases in State revenues; tax reductions should also be introduced for energy efficient investments. Any tax measure shall not aggravate the already existing crisis; it shall form the fiscal part of a wider stimulus package to foster the economy and give boost to development and growth, which is the only way forward, irrespective of the future developments to the Greek State debt crisis. g.kerameus@kpplaw.eu; www.kpplaw.eu
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 11
Tax Matters
The KPMG Greece Newsletter outlines important new tax measures for Greeks and Greek companies.
New Tax Measures Suspension of the Taxation of Profits from the Sale of Shares Listed on the Athens Stock Exchange or on Foreign Stock Exchanges POL 1004/3.1.11 issued by the Ministry of Finance suspends the application of Article 38 of Law 2238/1994, as it was replaced by Article 16 of N.3842/2010, concerning the taxation of profits from the sale of shares listed in the Athens Stock Exchange or foreign stock exchanges acquired from January 1, 2011 onwards. More specifically, according to the provisions of Article 16 N.3842/2010, profits gained by individuals and legal entities from the sale of shares listed in the Athens Stock Exchange were to be subject to withholding at a rate of 20% if the shares were sold within three months from their acquisition, 10% if the shares were sold after that period but before the expiry of twelve months, and
if the shares are sold after twelve months, the respective profits from their sale are exempted from tax. The above article provided that the provisions of paragraph 2 of Article 9 of Law 2579/1998 and of paragraph 2 of Article 27 of Law 2703/1999 continued to apply for shares listed in the Athens Stock Exchange or in a foreign stock exchange which have been acquired until December 31, 2010. In particular, a tax at a rate of 1.5 ╰ is imposed on the sale of shares listed in the Athens Stock Exchange and on the sales of shares listed in foreign exchanges carried out by individual Greek residents or by domestic companies or foreign companies that have a permanent establishment in Greece. Thus according to the provisions of POL 1004/3.1.11 issued by the Ministry of Finance, the application of the taxation of profits from the sale of listed shares is sus-
12 | BUSINESS PARTNERS | JANUARY-FEBRUARY 2011
pended and it is clarified that the 1.5 â•° tax continues to apply to sales of listed shares which will be acquired on and after January 1, 2011 as well. Please note that the suspension of the application of Article 38 of Law 2238/1994, as replaced by Article 16 of N.3842/2010, as well as the extension of the provisions of paragraph 2 of Article 9 of N .2579/1998 and of paragraph 2 of Article 27 of Law 2703/1999 should be legislatively regulated (by amendment of law) to ensure the lawful application of the above.
Draft EU Directive for Combating Tax Fraud According to a press release of the Council of the European Union of 7 December 2010, the Economic and Financial Affairs Council has agreed on a draft directive on strengthened mutual assistance of the member states of the European Union and the exchange of information in order to combat tax fraud. The directive will ensure that the OECD standard for the exchange of information on request is implemented in the EU as regards the exchange of information on request. It will thus prevent a member state from refusing to supply information concerning a taxpayer of another member state on the sole grounds that the information is held by a bank or other financial institution. The directive also includes other provisions. For further information contact: Dr George S. Mavraganis Partner In Charge, Tax Department Tel: 210 60 62 178 Fax: 210 60 62 111 E-mail: gmavraganis@kpmg.gr
Strategy + Innovation
by Constantinos Stavropoulos Founder, InnoValue
Seizing Your Future Retooling Serendipity into Certainty
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dditionally, you have to pick between too many futures (probable, creatable, preferred, surprising and planned). Moreover, you have to achieve sustainable long-term growth and renewal through constrained resources and restricted self-funding. What a boggling oxymoron! So, how do you sail into such ‘perfect’ storm(s)? How do you address such perplexing oxymora? How can you retool such apparent serendipity into pragmatic certainty? Strategic Innovators, a handpicked breed of exceptional skippers worldwide, have some answers to these tantalizing challenges. They’re already navigating successfully in these ‘perfect’ storms. They’re amalgamating and combining their time horizons. They’re unifying and fusing their variable futures. They’re blending contradictions, mingling incongruities and interweaving oxymora. By and large, strategic innovators are retooling artificial serendipity into practical certainty. How? Concurrently; they snatch open spaces within, grasp white spaces around and seize untapped spaces beyond. In parallel; they optimize business models, enrich portfolio offerings and craft novel pathways. Synchronously; they extract free cashflows and self-fund responsible wealth creation for all stakeholders concerned. Time though for a penetrating glimpse! Let’s discover what they are doing. Let’s uncover how they are doing it. Let’s sneak a quick look at their methods, approaches and toolsets.
Snatching Open Spaces Within (Optimizing) Strategic Innovators transform existing turbulent markets by optimizing their business models. How? They snatch open spaces within, instead of relentlessly economizing and ruthlessly cost-cutting. They vigorously practice business model innovation methodologies in holistically reconfiguring their architectural components (customer value propositions, profit formulae, key resources, key processes, business rules, behavioral norms and success metrics). They pinch on “open” gaps, breaks and pauses. What tools do they use? Specifically; they create crossgroup solution teams, hold tournaments and challenges, manage idea and concept competitions, apply consumer inspired development, and build vibrant communities of practice.
Grasping White Spaces Around (Innovating)
Your landscape is already becoming increasingly volatile, explosively uncertain, spasmodically complex and progressively ambiguous. Your time horizons (short-mid-long) appear indistinct, blurry and fuzzy. Your future has suddenly turned out not only vague, but contradicting as well. What a ‘perfect’ storm!
intervals and interims. And what tools do they deploy? Particularly; they implement innovation pipeline roadmaps, engage in innovation immersions, run innovation trainings, manage thought leader resource networks, and form innovation councils.
Seizing Untapped Spaces Beyond (Pioneering) Strategic Innovators create new markets/ categories by crafting novel pathways. How? They seize untapped spaces. They capture “untapped” plots, places and areas. And what tools do they adopt? Exceptionally; they formulate strategic innovation workshops, incubate innovation labs, submerse into thought leader panels, execute strategic imagination drills and activate venture boards.
But, this is what Strategic Innovators are already doing. What are you doing? How are you sailing these perfect storm(s)? How are you encountering these swelling oxymora? Are you applying these novel solution toolkits? Endowing your resources Are you retooling serendipity with a new capacity to into certainty? create responsible wealth Are you seizing all your future spaces hands-on? Strategic Innovators deal with industry discontinuities by enriching their offering portfolios. How? They grasp white spaces around. They clench onto “white” openings,
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 13
NAMES & FACES
...in the news Byzantino, Buffet & Black Angus—Minus 30% Byzantino at the Hilton, a favorite meeting place for Athenians since 1963, has reduced its prices by 30%, offering more “value for money” without reducing quality of services or products.The buffet offers a wide choice, with an emphasis on Greek cuisine. New dishes have been added in the à la carte menu such as Wagyu Burger, taliateles with pesto, eggplant and fillet of salmon with vegetables. The most notable new entry, however, is Black Angus beef from the farms of Creekstone, in Kansas, served as a fillet, rib-eye or T-bone with vegetable, fresh French Fried potatoes and a pepper and truffle sauce. Byzantino’s kitchen remains open until 1 o’clock and dinner is followed by a free treat of hot loukoumades with honey or chocolate.A special area at the atrium is also available for smokers. Reservations at 210-7281400. Cinabon Opens in Greece Cinabon, maker of the world’s most famous cinnamon rolls, that serves fresh, aromatic, oven-hot cinnamon rolls, as well as a variety of other baked goods and specialty beverages, has opened in Athens at the Korai Food Court and at the Aghios Dimitrios Metro Station. Cinnabon, a U.S.brand, currently operates more than 650 franchised locations worldwide, primarily in high traffic venues such as shopping malls, airports, train stations, travel plazas, entertainment venues, academic institutions, and military bases. Cinabon in Greece is operated by Cyprus-based Fourpoint Foods Ltd. Teach Your Children Well Aristotle wrote, “Some men become temperate and good tempered, others self-indulgent and irascible, by behaving in one way or the other in the appropriate circumstances. Thus, in one word, states of character arise out of like activities... It makes no small difference, then, whether we form habits of one kind or of another from our very youth; it makes a very great difference, or rather all the difference.”
Speaker’s Corner 14 | BUSINESS PARTNERS | JANUARY-FEBRUARY 2011
Begin Here
e-governence Interior Minister Yiannis Ragoussis unveiled the draft law on e-governance and the citizen’s card, an initiative aimed to further cut red tape and bureaucratic obstacles for citizens. Minister Ragoussis stressed that the implementation of e-governance will be mandaYiannis Ragoussis tory for all public sector services allowing for transactions that are less time consuming and less costly. The cost of transactions in the public sector is expected to be reduced 25%. The citizen’s card will include the national cadastre number, the tax registration number, the social security number (AMKA) and the police ID, underlining that all personal data will be fully protected. Following a public debate, a vote in parliament will be held in March.
Greek Americans Honored At the 2010 Hellenic American Lawyer Assocoation’s annual gala award dinner dance, two Greek Americans were honored for their achievements and contribution to society. CongressJohn Sarbanes George Stamboulidis man John Sarbanes and Attorney George Stamboulidis were honored at the gala event held in New York. Congressman Sarbanes represents Maryland and Attorney Stamboulidis is Managing Partner at Baker Hostetler, LLP.
Museum Night As of January 28 the Acropolis Museum will stay open until 10:00 p.m. on Friday evenings so that visitors may tour the exhibits while also viewing the floodlit Acropolis at night. The museum will also begin a program for the conservation and restoration of the Caryatid sculptures—structural columns holding up the temple’s porch that were carved to look like young women—from the Erechtheum.
Timely Advice
When you confront a problem you begin to solve it.
Wallowing in the past may be good literature. As wisdom, it’s hopeless.
—Rudy Giuliani
—Aldous Huxley
Art Supports Education initiative In recognition of the fundamental role of education, Fulbright artist alumni are donating their artworks to help raise funds for the Fulbright Scholarship Program. Fulbright Alumni Art Series will be sold through the Benaki Museum shops from January 27 to February 28, 2011, following the launch of the initiative on January 27 at the Benaki Museum Pireos street annex.
Yannis Kopsias XYZ PRODUCTIONS
The Corporate Video How can video help companies in their communication and marketing? As sensory beings, we are more communicative by using more senses. This why corporate videos, using graphics and music, are a stronger communication tool. A bad video, however, because of a low budget or a lack of inspiration, will destroy the whole effort. A corporate video provides free advertising! Make a good video, post it on a site and newsletter, and watch it spread! It is also an indirect and fast way for potential customers to become aware of your products and services. What are some options that companies can choose in using video? With the arrival of new media in the market, we can create more interactive productions. A video on the Internet has a long life span. But since there are millions of videos on the Internet it is necessary to ensure a high production value so that your video is singled out. How much easier is shooting video today compared with 10 years ago? Technology has helped in creating impressive results. Multi-member crews and heavy equipment are no longer necessary, so less time and money are needed. A corporate video is a marketing tool that can be used by companies of all sizes.
Taxes on Shares POL 1004/3.1.11 issued by the Ministry of Finance suspends the application of Article 38 of Law 2238/1994, as it was replaced by Article 16 of N.3842/2010, concerning the taxation of profits from the sale of shares listed in the Athens Stock Exchange or foreign stock exchanges acquired from January 1, 2011 onwards. More specifically, according to the provisions of Article 16 N.3842/2010, profits gained by individuals and legal entities from the sale of shares listed in the Athens Stock Exchange were to be subject to withholding at a rate of 20% if the shares were sold within three months from their acquisition, 10% if the shares were sold after that period but before the expiry of twelve months, and if the shares are sold after twelve months, the respective profits from their sale are exempted from tax. For more info: Dr George S. Mavraganis, Partner In Charge, Tax Department, KPMG, gmavraganis@kpmg.gr
Taco Bell Launches Taco Bell, the world’s leading Mexicanstyle quick service restaurant chain, launched its tacos, burritos and quesadillas in Athens in December. The first Taco Bell restaurant in Greece is located in the new Athens Metro Mall, at Aghios Dimitrios. Taco Bell was launched in Greece by PHC Franchised Restaurants Public Ltd., one of the largest restaurant organization in Cyprus, Greece and Balkans, operating 60 restaurants and cafes, including Pizza Hut in Cyprus and Belgrade, and KFC, TGI Fridays, Wagamama in Cyprus and Greece. Eurocharity Change of Address According to Eurocharity President Peter Michel Heilmann, Eurocharity has moved its headquarters to Dafni, at 2, Kosti Palama & 161, Vouliagmenis Avenue, GR-172 37 Athens, Greece, Tel: +30 210 927 1110.
Lucky You
The Right Question
—Brian Tracy
—John F. Kennedy
I’ve found that luck is quite predictable. If you want more luck, take more chances. Be more active. Show up more often.
And so, my fellow Americans, ask not what your country can do for you—ask what you can do for your country.
The Right Stuff
It is not living that matters, but living rightly. —Socrates
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 15
Insight
by Alexander Athanassoulas international consultant on business growth through human systems and President and CEO of STIRIXIS SA.
There is a little treasure of knowledge hidden in a very small phrase that comes more and more often to my mind these days… I would like to share it with you.
The Law of Requisite Variety
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n 1956, W. Ross Ashby, an English psy- mechanisms are upgraded. Police keeps chiatrist and a pioneer in cybernetics, close track of the Internet or use state-ofstated that “only variety can destroy va- the-art satellite tracking devices and so on. riety,” meaning that if a system is to be At the same time, a judiciary system is upstable the number of states of its control graded in order to avert crimes from hapmechanism must be greater than or equal pening by the threat of punishment. to the number of states in the system being Let’s try and approach our economy this controlled. A few simple examples will un- way and see what we can understand from veil the magic of these five words. “Ashby’s Law of Requisite Variety.” Take our If you have a crossroad with very little car country as an example and the issue of tax traffic, you do not need to take advanced evasion, a very hot topic at the moment. measures to control the flow of cars. As the Year after year, laws are introduced, and flow (variety) increases, in order to control then changed and changed again, to conit you probably install traffic lights. Add a trol tax evasion. Penalties for tax evasion number of peaks for the rush hours and va- are also becoming more severe. However, riety explodes. To control it you must now the variety of accountants, legal advisors further install smart feedback-systems that and irresponsible citizens cannot and will count car passes before the crossroad and be never matched (or exceeded) by the few optimize the traffic lights’ timing. Include minds working on the matter in the Minisan unseen event such as an accident and try. From simple to pioneering techniques, variety cannot be absorbed by the control mechanisms, so it is absorbed by itself in a failure state and traffic stops! We need to understand The same happens for example with police trying to control how systems work criminality. If criminals ride and build the right motorcycles to escape, po- mechanisms to control licemen must have at least as them holistically, as an fast and agile means to pursue entity, affecting all the them or a network to apprehend them further down the parameters in the best road. As variety in criminal- possible way ity increases, police control-
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from cross checking to chip-equipped smart consumption-cards, nothing can ever outsmart the variety produced by a general population willing to evade taxes. Other forms of mechanisms are required that will reduce variety on the side of tax evasion, rather than control variety a posteriori. These might easily include: a reduction in tax rates, a just spread of tax rates across population layers, a clear and open view on revenue outflows, a war on government corruption, a feedback – “open government” – mechanism on what local communities require to be done with part of this income and immediate actions, educational reform to restore community ties and a proper communication plan to present and support these actions. It is time to take a step back and look at things in a different perspective. The answers are there, we need to approach the problems in a systemic way to see them and understand their interactions and emerging values as a set of actions. If we want success, we must ensure that they are not partially or selectively executed. We need to understand how systems work and build the right mechanisms to control them holistically, as an entity, affecting all the parameters in the best possible way. Above all, we must realize the necessity to welcome change into our lives and study and learn the basic rules of Systems Thinking, such as the simple but precious Ashby’s “Law of Requisite Variety.”
Real Estate
by Nikos Iatrou Chief Operating Officer (COO) at Coldwell Banker Hellas, part of the Southeast Group; member of the Royal Institution of Chartered Surveyors (RICS)
Finding a Good Real Estate Agent—Tips
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et one thing is beyond question regardless of where you are: having a good, trustworthy, and experienced real estate agent can mean the difference between a successful, stress-free sale and one that is less than ideal. A good real estate agent takes charge of placing the home on the area’s listing service, and advertises in newspapers and on the Internet. He or she also helps set the price, offers advice on staging or repairs, and acts as an objective negotiator. The goal is to attract other agents—and their buyers—to the home. Consumers think the most important criteria for an agent to have are a good reputation, trustworthiness and knowledge of the market, according to industry surveys. Here are five strategies to find a reliable listing agent.
1
Ask for advice from family and friends, but also do your own research. Many sellers seek out referrals—it’s a tried-and-true strategy. Most people choose an agent based on word of mouth recommendation. Still, sellers should do their own homework. Sellers should educate themselves about the
homes for sale in their area, to make sure they agree with their agent on pricing. Sellers should meet with a few agents in person, and both parties should feel confident that they can work well together. Personal appearance, personality, and organizational and communication skills become more clear during a face-to-face conversation.
2
Agents should approach the first client meeting as a job interview. If they appear frustrated at repeated questions from a seller, then they might react the same way toward buyers asking about monthly utility costs or when the kitchen cabinets were installed. An important first question is, “How long have you been in real estate?” An agent with several years of experience should have strong knowledge of the area and is skilled enough to adjust to market fluctuations.
3
The agent should have experience working in your area. The listing agent should have intimate knowledge of the property and the neighborhood to help set
In many parts of the world, Real Estate agents are key partners to home owners. In Greece, the property industry suffers from a variety of problems, ranging from inconsistent levels of service to downright unprofessional behavior.
a competitive price and sell the home quickly. He or she should advise the homeowner about how to fix up the home and hold open houses to lure a multitude of buyers. The agent must also consider any upgrades the seller made to the home when setting the asking price.
4
The agent should know how to negotiate. Agents must have the time and the skill to navigate the backand-forth negotiation process. For example, sellers need an agent to help them decide whether to lower the asking price to generate interest in the home, or whether to stay firm and hold out for the price they want.
5
The agent should have knowledge of the entire process. Since the housing downturn, real estate agents have become more active in helping sellers and buyers navigate the process that begins when a contract is signed and ends at the closing. A listing agent should be able to explain each step and correctly answer the seller’s questions.
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 17
BIZ BUZZ
Check This Out... er, In One of life’s more tedious chores, depositing checks, could soon become much more automated. USAA, a Texasbased bank, plans to release an update of its iPhone application this week that lets customers make deposits using the device’s camera. The app will work by letting customers take a photo of both sides of the check and then submitting it to USAA. According to The New York Times “customers will not have to mail the check to the bank later; the deposit will be handled entirely electronically, and the bank suggests voiding the check and filing or discarding it.” USAA also allows customers to make deposits using a scanner.
Fast Track— Strategic Investment Law
On December 13, 2010, Greece announced its new Investment Law: “This is a new development initiative to meet the demands of the current crisis, to provide much needed liquidity and build the foundations of future growth,” said Minister for Regional Development and Competitiveness, Michalis Chrisohoidis. The new development law introduces a mix of investment incentives in the form of tax breaks, capital grants, leasing subsidies and low-interest loans. Total incentives may reach 50% of a project’s total cost. “We are changing the ground rules to add transparency and efficiency in the use of funds and guarantees, to create a catalyst for growth,” the Minister said.
In October, Greece announced its Fast Track Law—Acceleration and transparency in the Implementation of Strategic Investments—designed to facilitate the licensing procedure for major investments. Fast Track identifies strategic investments as those with positive multiplier effects—to boost economic growth, build a green economy, advance R&D, and create new, sustainable jobs. Fast Track focuses on projects in the energy, industrial, tourism, transportation, telecommunications, health, waste management, innovation and high tech sectors. Investments may either be Public, Private, or Public Private Partnerships. Prerequisites for Fast Track projects are: The value of the investment must exceed 200 million Euro or The value of the investment must exceed 75 million Euro and the investment must create at least 200 new employment contracts or At least 3 million Euro must be invested every three years, regardless of the investment value, In advanced technologies and innovation projects integrated into the strategic investment or In projects that increase Greece’s value and enhance the environmental protection of the country or In projects creating value for the country in the areas of education, research, technology and a qualitative or quantitative increase in knowledge or The investment creates 250 new employment contracts Fast Track includes a well-defined appraisal process for private investments that is coordinated by Invest in Greece and through the newly formed Interministerial Committee for Strategic Investments (ICSI).
www.investingreece.gov.gr
www.investingreece.gov.gr
Microsoft Innovation Center (MIC) Microsoft Hellas announced that the relocation of the Microsoft Innovation Center (MIC) in the company headquarters in Athens’ Maroussi district will be launched on Jan. 1 and is expected to be completed by Sept. 2011. The new MIC facilities will feature updated infrastructure and will operate on a 24-hour basis. In addition, MIC will provide a more reliable and speedier network infrastructure, ensuring unhindered network access and more productivity. In the recent Information and Communications Technology - ICT Forum held in Athens last October, the MIC received the Greek ICT Award 2010 for its overall contribution to the promotion of innovation and young entrepreneurship in Greece.
New Investment Law
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Deregulating Courier Services from strategy + business Strategy + Business magazine publishes an annual list and review of the best business books of the year. Business Partners lists the top choices in the management category, compiled under the heading: On Management, The Chorus Takes a Bow by David K. Hurst. For the entire list, with insightful review, visit: http://www.strategy-business.com/ R einventing Management: Smarter Choices for Getting Work Done by Julian Birkinshaw, Jossey-Bass L eading Outside the Lines: How to Mobilize the (In)Formal Organization, Energize Your Team, and Get Better Results by Jon R. Katzenbach and Zia Khan, Jossey-Bass T he Power of Positive Deviance: How Unlikely Innovators Solve the World’s Toughest Problems by Richard T. Pascale, Jerry Sternin, & Monique Sternin, Harvard Business Press R ethinking the MBA: Business Education at a Crossroads by Srikant M. Datar, David A. Garvin, & Patrick G. Cullen, Harvard Business Press
A draft law foreseeing the complete deregulation of the courier sector in Greece by 2013 is expected to be tabled in Parliament in February 2011. The draft law, pursuant to a 2008 EU Directive deregulating the currier sector for parcels and letters that weigh less than 50 grams, affects the bulk of correspondence handled by the postal service, considering that a deregulation is already in effect for correspondence weighing more than 50 grams. Until 2013, when the sector’s deregulation is completed, under-50 gram correspondence will be handled by Hellenic Post (ELTA).
Legislative Reform Law 3900/2010, recently passed by Parliament, addresses delays in the legal process before the Council of State and the administrative courts which have jurisdiction, inter alia, over tax, customs and social security disputes. The main purpose of the law is to prevent delays in the adjudication of justice and to discourage the filing of legal claims whose sole purpose is to delay compliance with legal obligations. It is important that this effort of the legislator is consistent with fundamental principles and rules of law, and especially with those which are protected by the constitution. However, issues do seem to arise concerning the compatibility of certain provisions of the new law with constitutional provisions. Especially for tax disputes, it appears that a special procedure for resolving such disputes within the framework of the Code of Administrative Procedure is introduced, which places tax payers in a less favorable position in comparison to other administrative disputes of substance. For a summary of the basic provisions of the law visit www.cpalaw.gr/english/index.html
Real Estate Development Crucial decisions to facilitate the development of real estate owned by the state have been taken by the government’s Committee for Restructuring and Privatizations. These include the creation of a Special Purpose Vehicle (SPV), Ellinikon SA, to manage the site of the former Athens airport at Elliniko and a new general secretariat at the finance ministry that will oversee management of the state-sector’s real property. The decisions were made in December. The program hopes to one billion euro in 2011 and ultimately raise seven billion euro. The Ellinikon SPV will make use of recent fast-track processes for business start-ups and seeks to speed up development of the site of the former airport, which the government had originally promised to convert into a large metropolitan park.
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 19
In Business
Hard Rock in Glyfada
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he 650-square-meter Hard Rock Cafe includes seating for 280, accented by beautiful open-air dining, convertible live music area, a vibrant bar and a Rock Shop, featuring Hard Rock’s limited-edition merchandise. The new Hard Rock Cafe offers guests access to one-of-a-kind memorabilia from iconic artists. Key memorabilia items are now on display, from Shakira’s beaded suit and U2’s drum head from the 1987 Joshua Tree tour; to a purple Stratocaster guitar played by Richie Sambora of Bon Jovi; to autographed glasses from Greece’s Nana Mouskouri. “This hip, yet opulent Greek municipality offers the ideal setting for the brand’s
newest cafe location,” said Sally Woodward, Hard Rock International’s Director of Franchise Operations and Development, Europe. “For more than six years, the brand has enjoyed success in Greece and is proud to call Glyfada home to the country’s second Hard Rock Cafe.” Guests of Hard Rock Cafe Glyfada can enjoy fresh, high-quality items from Hard Rock’s scratch-based menu, including the favorite Legendary Experience menu, featuring a mouth-watering selection of 10-ounce Legendary Burgers. Hard Rock’s Smokehouse Menu uses the very best Hickory wood chips to slowly cook its ribs, chicken and pork to juicy, tender perfection. In addition to its food, Hard Rock Cafe’s extensive,
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Hard Rock International introduced its newest rock star location— Hard Rock Cafe Glyfada.
award-winning drinks menu includes Hurricanes, Margaritas, signature favorites and Alternative Rock (alcohol-free) beverages, all available in Hard Rock Cafe souvenir collectible glassware. Hard Rock’s cocktails are handcrafted, just like its cuisine, and as authentic as the memorabilia on the walls. Owned and operated by Hard Rock Cafe Hellas S.A., Hard Rock’s franchisee in Greece, the new Glyfada cafe joins the original Hard Rock Cafe Athens location as the 28th cafe in the brand’s impressive and everexpanding European portfolio. Hard Rock Cafe Glyfada is located at the corner of 5A Zisimopoulou Street and 26 Lazaraki Street, Glyfada.
Business Matters
by Kathy Chrisovergis
One word to describe a day managing a moving company is simply… chaotic!
Celebrating 25 Years
The Business of ‘Celebrity’ Moving
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et, in the midst of logistics and planning, I find it fulfilling… simply based on the rewarding challenges we face. At Celebrity International Movers, we stand by the name we chose, giving each client “celebrity” treatment during one of the most stressful situations that can arise—moving. Now we can proudly say we’ve accomplished that for 25 years, thanks to our business values. As a New Yorker who grew up in Bayside, Queens I started to learn a thing about moving when we moved on and off to Greece as a child. Then Athens became home, after getting married and starting my family here. My husband George and I were working in the moving industry. Together we took the plunge and started our own company from scratch. That was how Celebrity was born in 1986. Over the years, we’ve had ‘wow’ moments like moving actual celebrities including famous athletes, singers, actors, writers and even royalty across Greece or around the world. Amazing assignments have come our way, including handling the complicated logistics to transfer props for the National Greek Theatre’s world tour. We successfully moved their goods to some very remote locations in South America on strict deadline. Back in Greece, the challenges are many. We manage everything
from hiring donkeys for island moves to testing our flexibility in the face of unexpected strikes. Over the past 25 years, we think we’ve seen it all! No matter what the assignment, we are committed to personalized ‘celebrity’ service. Our office staff to our packing team adheres to the best business values from both American and Greek cultures. Team work is one reason why clients return to us. We’ve found that working together well goes noticed especially during this economic crisis. Competition is tight but we remain one of the best in the
ago offering comprehensive school to home search – a tremendous help for families to adjust when moving into or out of Greece. Finally, we focus on the client’s perspective by understanding their needs. A stress free move means dealing with a move coordinator who speaks perfect English or Greek. Maybe it’s French. We also seek customer feedback, which over the years has been proudly in our favor. Many of Celebrity’s employees have international backgrounds and some are even Ex-pats as well so they understand the moving process from first hand experience. As we approach our 25th anniversary, we recognize the business values that have susTeam work is one reason tained our clientele which inwhy clients return to us. cludes embassies, international corporations, governmental bodies, schools to families and individuals. From local to inbusiness by providing top service coupled ternational moves and specialized moves with competitive rates. for offices, art and antiques, ships to pets Celebrity’s team work can only be solidi- and exhibits, each experience has been fied by maintaining quality standards. We worthwhile and meaningful, helping us have the top industry credentials, keeping grow. We aim to keep moving ahead using our finances, quality and safety controls in the strength of our teamwork, quality strict order in both our office and ware- standards and innovation to continue to ofhouse facilities. fer our unique ‘celebrity’ service to our cliWe’ve expanded by valuing innovation. Our ents, our form of personalized service that relocation department opened four years goes beyond their expectations.
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 21
THE INTERVIEW
Top Line Performance, Bottom Line Results Giuseppe Zorgno, CEO, Chartis Greece and Paul Canellopoulos, Vice Chairman, discuss the rapidly evolving insurance industry in Greece in an era of social and economic uncertainty, demographic shifts, and new legislation.
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During this time of social and economic uncertainty, provide us with a brief overview of the insurance industry in Greece? Paul Canellopoulos The deterioration of the economic environment in Greece found the local insurance industry in the midst of a challenging transitional period. In the last two years, the market has experienced rapid regulatory developments, preparing the road also for the Solvency II era which, in turn, brings an even stricter and more demanding regime with additional, not limited to capital, requirements. Inevitably, consolidation has started and is expected to continue for the next few years, involving both insurance carriers and the intermediaries market. To complete the challenges’ mapping, we should add external issues, such as climate change and hazardous natural events which fuel loss ratio, and, on top of these, the changing customer needs. Today, the individual customer is better informed, more aggressive and empowered, rejecting mediocre service and demanding to co-create the insurance coverage. In parallel, complexities of commercial risks and hard-pressed balance sheets have highlighted product innovation and flexibility in the architecture of the deal as primary critical success factors in providing insurance and risk management solutions. During these uncertain times, Chartis Greece is (and will continue being) a safe harbor for partners and customers, providing high quality service and customer valued differentiated and distinctive solutions. How has the crisis affected the insurance industry? Giuseppe Zorgno It is obvious that economic recession affects both life and non-life insurance companies, but, until today, less severely when comparing to other market sectors. Total year results are not expected to differ much from the first 9-month period of 2010, in which, compared to last year, the life insurance showed a decrease in premium while the non-life market presented a thin growth, the latter mainly due to the increased premiums for Auto coverage that contributes to approximately 65% of the total market production. All other lines of business in non-life sector—only green energy insurance could be mentioned as an exceptio–n—were affected by the shrinking of total business
Giuseppe Zorgno, CEO, Chartis Greece
activity and the crisis impact on consumer spending power. Within this turbulent marketplace, Chartis Greece, achieved, for the sixth consecutive year, strong top line performance, combined with solid bottom line results both in consumer and commercial lines Solvency II is a central industry topic. What are some of the key issues of Solvency II? Giuseppe Zorgno The EU Solvency II Directive aims at fortifying the European insurance industry against systemic risk and increasing its competitiveness in order to safeguard its efficient operation for the benefit of the insured. In this context, European insurance enterprises will be called upon to manage effectively all kinds of risks, insurance and operational for example, to which they are exposed in a framework of transparency and through regular regulatory reporting. Consequently, the level of capital necessary for meeting their obligations, the development of adequate risk management systems and processes, as well as compliance with the new corporate governance framework are some important issues for insurers. We hope to see that all insurance companies operating in Greece will take all necessary measures in order to meet the requirements of the new regulatory framework. How do technological developments redefine the insurance industry today? Giuseppe Zorgno Similar to what has happened in other industries, the insurance market in Greece has already employed virtual channels in both communication and distribution. Contrary to the single-channel perspective, the multi-channel setting introduces a number of complexities in providing service to business partners, corporate and consumer clients. This happens because
customer experience is developed across different B2B, B2C and B2B2C touch-points with the insurer, through not only on-line and off-line but also direct and indirect channels. With more than 5 distribution and 15 communication channels available today in our local market, portraying the series of moments of contact with an existing or prospective customer is similar to canvassing the labyrinth path! We challenge ourselves every day and we are proud to claim that service excellence in this multi-channel environment is a hard-to-copy and sustainable competitive advantage of our organization. This mostly requires an agile and customer-focused corporate culture of talented people, as well as utilization of technology development. Greece’s demographic profile is also a key factor— how does this affect the industry? Giuseppe Zorgno Obviously, changes in demographics will greatly affect local industry, primarily life insurance sector but also personal non-life insurance, in the next decades. We would expect to see an aging population with increasing concerns for retirement and health care costs. On the contrary, “senior” customers would be more demanding and confident and they would better understand their rights. Without ignoring the Internet-literate younger generation, demographic change is
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THE INTERVIEW Paul Canellopoulos, Vice Chairman, Chartis Greece
a major driver for adopting the value proposition to the new reality. By analyzing systematically customer needs throughout life time—from young, to adult and to senior—our focus is to develop protection solutions for all ages, life styles and stages. What Chartis products and services differentiate you in the Greek market? Giuseppe Zorgno Our organization has a long history of offering insurance solutions to the full spectrum of enterprises in Greece, from multinationals with international exposure to different continents, to mid-sized companies and small businesses to institutions, to public sector and non-profit organizations. From the traditional property and casualty protection to more industry specialties like Product Recall, Directors & Officers and Environmental Pollution Liabilities, products are tailored to meet the needs of each business customer, accompanied by local claims service even to international claims. In our consumer products portfolio, we should also highlight Private Client Group, a totally unique concept of product and services, addressing the needs of high-net-worth individuals and families. Our high-skilled, talented and creative people are standing behind product innovation and quality service, ensuring the company’s success. What are some of your products tailored to business clients? Giuseppe Zorgno Our value proposition to corporate clients and their brokers includes access to extensive insurance and risk management offerings, worldwide claims and consulting services, supported by local expertise and resources. Our win-win-win approach linked all parties to collaborate as business partners. We are analyzing clients’ objectives, risk exposure and requirements in order to co-develop the optimum coverage scheme. In addition, we add value to our products by offering consultancy and business protection services, such as crisis management services. As part of the most extensive property-casualty network, we serve clients through the Chartis global network, providing claim services and expertise virtually anywhere around the globe.
Chartis in Brief Chartis is a world leader in insurance, with 90 years of proven experience and customer service. Its fundamental strength lies in the 40,000 employees, who combine global reach with the ability to serve clients in more than 160 countries and jurisdictions. Chartis focuses on commercial and personal insurance, with over 500 innovative products and
services that are backed by superior financial strength. As a result, more than 45 million clients around the world rely on Chartis to meet their unique insurance needs. Chartis Greece is one of the oldest, strongest and most reliable providers of insurance services in the Greek market. Through its Personal Solutions Division, it offers a compre-
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hensive suit of sophisticated personal insurance products matched with top-class 24x7 claims support Private Client Solutions is a totally new concept of unique product and services, addressing the needs of high-net-worth individuals and families. Chartis Greece’s Business Solutions Division provides stateof-the-art commercial insur-
ance products and services to the full spectrum of major and mid-sized private enterprises as well as institutions and public sector organizations, covering their local and international exposures. Smart Business Solutions offer a full suit of multi-line, modular products especially customized for over 400 SME business categories.
Travel USA
On the occasion of Greece’s entry into the Visa Waiver Program, the U.S. Commercial Service of the American Embassy in Athens is showcasing all 50 states and five territories in Business Partners.
Discover America—Arkansas ★
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he Deep South meets the Pioneer West in Arkansas creating a special blend that makes the state unique. Recognized for its extraordinary natural beauty, Arkansas is rightly known as “The Natural State.” Arkansas’s 52 State Parks are a great place to start. At most parks you can hike the trails, picnic, take part in interpretive programs, and go exploring all for free. Campsites, lodge rooms and cabins are also available in most of the parks for moderate sums that won’t break the bank. The Crater of Diamonds is the only place on the North American continent where you can dig for diamonds and keep what you find. In Little Rock, a must-see is the Clinton Presidential Library, along with the downtown River Market District, where the library is located. Next door is the world HQ of Heifer International, which offers tours of its award winning, ecologically-friendly building. The Ozarks feature quaint, cozy towns, including Eureka Springs, one of America’s Distinctive Dozen Communities. A vibrant arts colony, the downtown historic shopping district, and an eclectic array of attractions make it a popular destination. In Hot Springs, visit the country’s first national park, partake of the famous thermal waters, and visit numerous museums and shops. The Arkansas Delta features some of the most historic areas of the state with museums and a Blues heritage. LITTLE ROCK
THE NATURAL STATE Land Area 53,225 square miles Population 2.6 million State Capital Little Rock Largest City Little Rock Local Time 8 hours behind Greece Climate Arkansas’s climate is temperate most of the year, especially in spring and fall; hot and humid days are typical of late summer. Winter temperatures occasionally dip into the teens or below, although such outbreaks usually last for short periods and winter days are often sunny and mild National Parks Six. Buffalo National River, Hot Springs National Park, Fort Smith National Historic Site, Arkansas Post National Memorial, Central High School National Historic Site, Pea Ridge National Military Park
For more information: Arkansas Department of Parks and Tourism Tel: 001 501 682 7777 E-mail: info@arkansas.com Website: www.arkansas.com
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Innovation
Innovation
At the Heart of Growth and Progress Innovation drives growth and progress. Innovators are often disruptors and heretics. They are often scorned but, in the long run, usually remembered. Business Partners continues its series on innovation—one of the most important elements of Greece’s long-term success as it struggles to overcome deep financial debt, unemployment, and social upheaval.
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ion Innovat ion at c u d E in
Innovation
Innovation and Mission
David G. Horner Ph.D., President, The American College of Greece
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visited The American College of Greece for the first time in Marc h 2008 as a candidate for the College’s presidency. My schedule included a faculty presentation on “Top Ten Lessons” from my 24 years of presidential experience in the United States. One of those lessons was: successful universities internalize ongoing innovation. I tied this point not only to my experience but also to the thesis of the pre-Socratic philosopher, Heraclitus, who asserted that the ultimate nature of reality is change. Now almost three years later I have had the opportunity to put my advice into practice. Happily for me, innovation is deeply rooted in the history of The American College of Greece: ❚ The College was founded by innovators – highly educated women from Massachusetts who created a school for girls in Smyrna in 1875. ❚ Following the Asia Minor Catastrophe the College reinvented itself (at the invitation of Prime Minister Eleftherios
Venizelos) in Athens in 1923. ❚ After the German occupation and World War II, when the College was transformed into a hospital, the College’s curriculum responded to the social needs of the times by educating Greece’s first social workers. ❚ Later in the 20th century the College’s curriculum expanded further, introducing the study of psychology, marketing and computer information systems to Greece. Innovation is in the “DNA” of The American College of Greece. Therefore, in 2008 I inherited a community of faculty and staff eager to pursue new initiatives to respond to a dynamic operating environment, and we are doing just that. At the core of much of our current institutional change is a strategy to “internationalize” the College. One dimension of this strategy is constructing a “twoway street” to the United States on which students, faculty, staff, knowledge, expertise and other resources will move to and from Greece. For example: ❚ We believe we offer unmatched quality in facilities and breadth of US accredited academic programs and will enroll several hundred high quality US university students annually in our rapidly growing study abroad programs. ❚ Going the other way, we have entered into agreements with universities such as Stanford and Emory to send our
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Greek students abroad, to the US and elsewhere. Many of these programs will be on an “exchange” basis (i.e. our students pay DEREE tuition, 60-70% less than many private US universities, but enroll for a semester or a year in the “exchange” institution). ❚ We are partnering with US universities to deliver specialized programs to meet Greece’s market needs. One such program is a master’s degree in real estate management that will be launched next fall with DePaul University (Chicago). ❚ Beyond degree programs, we are forming collaborations to deliver expertise to benefit Greece (e.g. we have
Driving innovation in support of this mission is a high calling, indeed! partnered with the University of California, Davis, which operates a world-class research center for winemaking and olive oil production and
hope to bring this expertise to strengthen the performance of these industries in Greece). ❚ Another collaboration begun this past year with the National Hellenic Society fully funds high achieving Greek American college-age students, who have never been to Greece, for a two-week cultural immersion experience based on our campus. ❚ Again going back the other way, we are developing a Greek language initiative in which DEREE graduates will have the opportunity to teach in Greek schools in the US as well as perhaps other regions of the world. Our “internationalizing” is not only focused on the US. We are also in the process building other “two-way streets” for DEREE and PIERCE (our high school division) in Europe, the region surrounding Greece and beyond. Finally it is important to note that The American College of Greece’s innovation narrative always has been tied to a higher purpose, namely, our institutional mission. Today we state our mission this way: “To add distinctive value to our students as well as to Greece, American education, Hellenic heritage, and the global community through transformative teaching, scholarship and service.” For me, driving innovation in support of this mission is a high calling, indeed!
Greece’s Family Businesses: An Untapped Resource for Innovation and Growth
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s the Greek economy seeks new champions to boost growth, and subsidy programs to support young and first-time entrepreneurs are expected, a vast pool of resources is left untapped. Family businesses make for more than 90% of ventures in Greece and several have been around for three or more generations. Though the term family business is often used with a negative connotation to describe a company that has deficiencies due to family involvement, the reality is different. Family businesses which address issues that arise due to family involvement tend to outperform other entrepreneurial ventures. In order to achieve sustainability and transgenerational growth, family businesses are forced to be entrepreneurial and to build on their tradition. Though Greece needs new knowledge based ventures, we also need to focus on the entrepreneurial mindset in the more traditional – but very promising – Greek business sectors. Family businesses that have a legacy in doing something right are therefore an untapped resource for innovation and growth. Especially when innovation is defined in such a way, that it contains all kinds of novelties, such as the introduction of new processes and the repackaging of products for improving market share. We also need to keep in mind that family businesses are significant for employment, regional development and philanthropy. What family business characteristics might stand in the way of innovation? Firstly, it is prolonged CEO tenure. While non family businesses change their CEOs every seven years approximately, family businesses tend to have their CEO unchanged for more than twenty. While prolonged CEO tenure helps focusing on strategy without frequent changes, it creates resistance to change when it lasts too long. Resistance to change is the main inhibitor for innovation in family businesses, since the departing generation grows to become more risk averse and often disregards
suggestions made by the following one. Secondly, family businesses often “suffer” under the need to minimize conflict and common established thinking patterns – leading to group-think. In order to be sustainable, family businesses need to find the golden mean between tradition and innovation. So, setting up innovation groups, creativity workshops and a system that captures novelties might be a good start. The family also needs to expose itself to the market, so that new trends can be assimilated within their business. Finally, the family can set up a governance tool that controls and monitors the effectiveness of the
Alexis Komselis Family Business Specialist
In order to be sustainable, family businesses need to find the golden mean between tradition and innovation
CEO. Of course, the government can also help. A major issue for family businesses in Greece – especially for sole proprietorships or partnerships – is transfer of business. The cost and bureaucracy of this is often a major inhibitor for passing the business on to the next generation. As we therefore strive for wealth creation and new jobs, let us take a close look at all these family businesses that have a proven track record for enterprising. The most significant resource of successful family businesses is the ability to form an entrepreneurial team irrespective of the product or service. Family businesses have shown that they can both innovate, as well as manage a venture portfolio depending on the capabilities of family members. Plus, it is more probable that they have capital to invest.
on i t va ess o n In usin in B
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Innovation
Biovista—A Pioneer
Dr. Andreas Persidis CEO, of Biovista, discusses the rapid advances the company has made, in Greece and the United States.
Biovista’s technology platform takes this process to the next level
ion t a v o n In k at Wor
In early 2010, Biovista Inc, signed an agreement with the US FDA to test for adverse events in medicines. How has this progressed? The US FDA agreement is a very important one, in terms of what it represents not only for Biovista but potentially for the life sciences and health sector as a whole. Understanding and predicting potential adverse effects (AEs) of drugs is one of the big remaining challenges of the industry. To date we have not had tools that allow us to identify with any degree of certainty such AEs before they occur. As a consequence drugs approved by the competent authorities, can result in loss of life or severe incapacitation once they have circulated widely in the market. Biovista’s technology is quite promising in that it allows us to predict AEs with a relatively high degree of certainty. So far our studies have shown that we can expect a predictive accuracy of the order of 60-70%, which if born out will prove to be transformative for drug development. We are also unique in that our predictions are based on a so-called mechanism-of-action approach as opposed to statistical analysis. Simply put. our approach allows scientists to assess the mechanism of AEs on the basis of biological processes, which by training they are much better prepared to understand. This is the reason that the FDA has been willing to try Biovista’s approach. So far the pilot project has been going well and both parties are seeking to expand this collaboration. In the interest of better health care and increased patient safety, the FDA is pushing to raise the bar for the whole industry and is promoting an open dialogue amongst industry stakeholders in order to explore how we can collectively become better at predicting and safeguarding against AEs. Biovista is honored to be part of this effort and we are actively offering our expertise in this respect. In late 2010, Biovista signed another agreement with Pfizer, the largest pharmaceutical company in the world, to carry out drug repositioning programs. What are the ramifications of this
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agreement for a company such as Biovista? Drug Repositioning is an emerging field within the broader life sciences industry. As such there is a need to educate the market to this approach and to illustrate its potential to those who may be skeptical about its ultimate utility. Pfizer has been one of the ‘early adopters’ of this approach and naturally helps legitimize drug repositioning in the minds of many practitioners. Like other large pharma corporations, it is facing the by now famous ‘patent cliff ’ as well as the lower than expected returns from other promising technologies of the genomic era, both of which translate into dwindling revenues as we move forward. The pressure is therefore on all industry players to identify new ways of bringing new and better therapies to the market. It goes then without saying that agreements such as this work in the direction of increasing market awareness, which will help everyone involved, from Biovista, to other pharmaceutical and biotech companies, and most importantly patients themselves. Please explain the process of drug repositioning and the tools you have developed to carry out this work. Drug repositioning is the process of finding new indications for using a compound that were not foreseen by its original developers. Viagra is an example of drug repositioning. Originally the compound was being developed for pulmonary hypertension. However during clinical trials, doctors observed a side effect that was actually beneficial for patients with erectile dysfunction. Development work was refocused on this indication and the result is a billion dollar blockbuster for the drug’s sponsor, Pfizer. Drug repositioning is becoming increasingly important for pharmaceutical companies who are faced with the ‘drying up’ of their drug pipelines since it promises to create new candidates but also reuse a lot of the pharmaceutical companies’ intellectual property that has been lying dormant. Drug repositioning
is not new; it has been happening for a number of years but mostly on a serendipitous basis. Biovista’s technology platform takes this process to the next level by allowing us to reposition drugs on a systematic basis and with a high degree of predictive accuracy. Based on the extraction and correlation of knowledge from published scientific literature Biovista’s platform is unique in that it allows our scientists to assess not only the benefit but also the potential risk factors of any compound of interest. It is this capability that puts Biovista in the position to serve not only large pharmaceutical and biotech companies such as Pfizer and BiogenIdec but also organizations such as the FDA.
Biovista appears to have a bright future. Do you believe the model of having an operational base in both Greece and the U.S. is advantageous for you? Yes. So far this geographic distribution has offered Biovista significant advantages, the international reach being probably the most important one. The US has traditionally been more open than Europe to new ideas and approaches, which can prove critical in the case of emerging technologies such as drug repositioning. On the other hand the significantly cheaper labor we could tap into from our Athens office, also helped in the formative years of the company. Geographic proximity to the EU market is another advantage that Athens has to offer.
Biovista has become a trailblazer, both in testing for adverse events and in drug repositioning, both highly sophisticated and demanding fields. Does Greece offer qualified human resources to a company like Biovista? Obviously yes since Biovista’s technology platform has been developed by Greek scientists. It is widely accepted that Greece’s human capital is amongst the top in the world. What we need to do as a nation and as companies is to ensure that we offer fertile and worthy fields of endeavor for these talents to blossom. It is also true however, that as one’s needs in specialist areas increases, finding collaborators with the right experience becomes more of a challenge. In our case for example, finding corporate attorneys or drug development experts with world-class experience in drug related IP and handling IND applications is proving a challenge. For this reason we are liaising with the government to increase its awareness of these issues so that it too can take the necessary measures.
Biovista Biovista is a drug repositioning company established in 1993 with offices in Athens Greece and Charlottesville VA, USA. Biovista’s repositioning programs leverage the company’s technology platform to identify suitable drugs and reposition them in isolation or in combination with other drugs to therapeutic areas that are
currently not covered by existing products. By selecting drugs that already satisfy basic toxicity, ADME and related criteria, Biovista is able to deliver significant value at reduced cost and in dramatically shorter time frames than is normally the case. The company has initiated its own drug repositioning efforts in the CNS area with positive
animal model results in MS and epilepsy. In addition to its pipeline, the company uses its platform technology to offer clinical outcomes services to organizations such as the FDA, pharmaceutical and biotech companies such as Pfizer and Biogen Idec as well as major academic institutions in the US and Europe.
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Urban ion Innovat
Innovation
Eco-Innovation in Greece The Ultimate Climate Impact Tool for Mediterranean Climates Vanya Veras VVEco, Oikosteges Communication and Development
Andrew Clements, Founder of Oikosteges
“G
reen Development can help solve economic crisis and environmental degradation” state world leaders. Whilst the United Nations tries to lead countries to lower emissions, the world population has reached seven billion, three billion of whom are preparing to emulate the consumption patterns of the developed world. If that happens without a move to sustainable production and living, we will have lost the battle against climate change. Until as recently as ten years ago, such statements were illusionary and discussed in earnest only in civil society. Today companies embrace CSR and some far-sighted individuals have found solutions: innovations which make the change from consumerism to sustainable living viable and attractive. One such individual is Andrew Clements, who adopted Greece as his home over twenty years ago and, being environmentally conscious, wanted an energy efficient green roof for his home. The product was not available on the Greek market, Swiss and German green roofing experts said they had tried but their systems were not
‘This is not environmental philanthropy; it is sound business’ — Ford commercial, describing their green roof at their plant in Dearborn, Michigan
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adaptable to the Greek climate. His reaction was to research and develop a Greek system: six long years of painstaking research of the peculiarities of the Greek climate, ecosystems, natural resources and building practices with the help of a team of Greek experts. The result is an environmental abatement tool for any built surface in a Mediterranean or hot, dry climate which acts locally and is adaptable globally. The Oikosteges system holds two global patents, is fully adapted to the extremes of the Greek climate (+45οC with 9 Beaufort winds, torrential rain, ice and snow) and at 50kg/m2 when wet, it is below the weight restrictions for roofs in an earthquake zone. It has wild Greek plants thriving with little or no water, no maintenance and no requirement for chemical fertilisers or pesticides. Studies of green roofing systems across the US and Canada have suggested that a modest percentage coverage of the roofs in a city can lower the ambient temperature in a heat wave by up to 10οC by setting up a virtuous circle: reduced airconditioning requirement – lower temperatures – reduced air-conditioning requirement. An Oikostegi is an energy efficiency tool specifically adapted to and designed for Mediterranean and hot, dry climates and can help to dramatically reduce reliance on fossil fuels and related greenhouse gas emissions. With oil prices on the rise, environmental policy and the world’s economy in crisis, these are undeniably significant considerations. Even better? Oikosteges are completely compatible with PV: the technologies are complementary. The photovoltaic panels shade the plants in the heat of the day and electricity production
Roof of the Greek Ministry of Finance, installed in 2008
from the panels is significantly enhanced by the cooling effect of the plants. The Oikosteges business plan is solid: innovate, create excellence in green roofing and emission reductions, work with other green technologies, re-invest in continued innovation to make green roofs affordable to all. The strategy’s success can be seen with the company’s latest development. Oikosteges 8 (OS8) released in October 2010. Public polls showed that green roofs are desirable. An ecosystem on the roof, reduced energy
bills – who would refuse? The barrier was the initial cost, the solution: OS8. A portable, modular, DIY method of creating your own green roof at your own pace. Pictured below, OS8 is the first and only portable green roof system and has the record-breaking wet weight of 20kg/m2. Oikosteges is the ultimate expression of a sustainable business: it uses local resources, recycled materials, lowers costs and emissions, corrects the problems of overcrowded, poorly constructed cities, acts locally and thinks globally.
an Oikostegi implemented as a lush garden with a grass effect
OS8 detail: a PORTABLE green roof. A GLOBAL FIRST
OS8 just planted. In three months, the tiles will be covered
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Innovation
The Innovation Cycle William D. Eggers Shalabh Kumar Singh Stephen Goldsmith
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ontrary to the stereotype, many governments are adept at generating ideas. Public-private committees, citizen panels, and internal employee groups all have been used to crank out
mance reviews, where committees of public and private sector executives reviewed government practices and suggested reforms. Some of these initiatives delivered substantive benefits, others faded from view soon after the final report
The innovation process
Idea generation
Create systems to generate and maintain the flow of good ideas
Selection
Filter good ideas by creating an efficient sorting process
Conversion
Diffusion
Convert ideas into products, services and practices
proposals for improving public sector operations. Where governments often flounder is putting these proposals into practice. In recent years, several governments have launched high- profile perfor-
Many governments focus most of their time and resources on idea generation rather than implementation and diffusion.
Manage stakeholders and disseminate ideas widely
was released. What was the difference? Successful innovators had a plan for turning good proposals into concrete action. Many governments focus most of their time and resources on idea generation rather than implementation and diffusion. It is analogous to the weekend golfer who spends hours at the driving range whacking drive after drive. Once out on the course, the long practice hours invariably pay off as our hero’s long, straight drives impress his golfing buddies.
Once the scores are tallied, however, he finds himself dead last. Why? He lacks a short game. He forgets that the object of the game is to get the ball in the hole and doesn’t focus on the little stuff. As the pros put it, “You drive for show, putt for dough.” In short, innovation is not just about generating good ideas. A good idea is only the first step; organizations then need to implement the idea and produce results. To do that, they need a clear roadmap for converting ideas into effective solutions that earn the support of stakeholders. This process view of innovation, the innovation cycle, typically consists of four stages: idea generation, idea selection, idea implementation, and idea diffusion. Successful innovators focus on all stages of the innovation cycle. In a recent Harvard Business Review article, professors Morten T. Hansen and Julian Birkinshaw argue, “When managers target only the strongest links in the innovation value chain — heeding popular advice for bolstering a core capability in, say, idea generation or diffusion — they often further debilitate the weakest parts of the value chain, compromising their innovation capabilities further.”
Source: Deloitte Research. Ash Institute for Democratic Governance and Innovation, John F. Kennedy School of Government, Harvard University. The Public Innovator’s Playbook: Nurturing Bold Ideas in Government
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Greece Joins Cascade Toward Global Water Treaty
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n December, 2010 Greece became the 21st country to ratify a global water treaty designed to reduce conflict and guide joint management over rivers and lakes forming or crossing international boundaries. The ratification adds new momentum to efforts to bring United Nations Convention on the Law of the Non-Navigational Uses of International Watercourses (UN Watercourses Convention) into force. The Convention, adopted at the United Nations 13 years ago by an overwhelming majority, becomes effective once it has been ratified by 35 nations. “Water is a resource that often crosses borders, creating both obligations and opportunities for the development of successful cooperation between countries,” said Tina Birbili, Greek Minister of Environment, Energy and Climate Change. “The promotion of transboundary cooperation on water issues is inherent to Greece’s foreign policy, since around 25% of its surface water extends to or originates from neighboring countries. The UN Watercourses Convention together with the EU Water Framework Directive constitute the necessary background and reference point for advancing the transboundary negotiations that Greece has initiated with Albania and the Former Yugoslav Republic of Macedonia, on the Prespa Lake; with Turkey, on the Evros basin; and with Bulgaria, on the Nestos, Strymon, Ardas, and Evros basins.” According to Vangelis Constantianos, Executive Secretary of GWP-Mediterranean, “Greece’s initiative should serve as a strong encouragement for other European and neighbouring countries to join the UN Watercourses Convention as well.” For Dr. Fadi Comair, President of the Mediterranean Network of Basin Organizations (MENBO), “The ratification of the UN Watercourses Convention by Greece is a very important step and we look forward for a speed entry into force of this convention which will underpin considerably the culture of peace and best practices of cooperation of Mediterranean countries on their shared water river basins.”
The widespread endorsement of the convention has been facilitated and encouraged by the UN Watercourses Convention Global Initiative, led by WWF, Green Cross, Global Water Partnership, the IHP-HELP Centre for Water Law, Policy and Science, under the auspices
WWF GREECE
‘We hope that Greece will show the same consistency in the implementation of an integrated national water policy in the immediate future.’ — Demetres Karavellas, CEO, WWF Greece
of UNESCO (Centre for Water Law, Policy & Science), and numerous other partners. As emphasized by Demetres Karavellas, CEO of WWF Greece, “the ratification of the Convention, as well as other recent initiatives by Greece that promote transboundary cooperation on water management issues are certainly remarkable and encouraging.” And he adds: “We hope that Greece will show the same consistency in the implementation of an integrated national water policy in the immediate future.”
ion Innovat ation erv s n o C in
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ion Innovat il a in Ret
Innovation
Green Shopping Alexia Macheras Communication & C.R Manager, AB Vassilopoulos
AB Vassilopoulos inaugurated its first all Green Store in Stamata, north of Athens, on October 26, 2010
The use of new techniques can help produce energy and reduce energy consumption up to 40%
What led AB to consider this type of store and what is the philosophy of a Green Store as it relates to your overall business model? CR (corporate responsibility) being part of our corporate strategy for the next 10 years, building a Green Store was an inevitable step towards testing new technologies that would permit us to test their efficacy. The project started in 2009 and after 18 months of research, design and construction, it was finally inaugurated in October 2010. It is AB’s first all Green Store and the company’s 222th, marking thus the beginning of a new era in regards to store construction, with the use of new techniques that can help produce and reduce energy consumption up to 40% in comparison to regular stores. The use of photovoltaic panels, wind generators for the production of energy, natural openings for ventilation, solar tubes for natural light, low energy consumption refrigeration and cabinets, geothermic systems for heating during winter and cooling during summer and rain water tanks are some of the techniques used that make this store so unique. But apart from its specific design, the materials used for its construction are particularly environmentally friendly and are comprised of: marble, wood and rock blocs instead of asphalt. At the AB Green Store one can also find carts and baskets from recycled plastic bottles, an electric car recharge station, a full recycling center together with a cooking oil recycling tank and lamp recycling. One can also find an interactive park that
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informs children on the techniques used that render the store environmentally friendly. How do shoppers react to the Green Store and what have you learned along the way? The store has been open for three months only but the feedback we get from our customers and the press is more than we could expect. We are very happy to see that the local community has embraced the store with such fervor. Word of mouth has brought more customers than we could expect for any new store. As for the press, it showed a wide interest as it is not that usual in a period of economic crisis to have companies invest in such projects. We are extremely proud to be able to give a positive note in such a morose period and this project is a pilot in order to examine and evaluate all the technologies and materials used in order to further develop some of them wherever possible. What possibilities exist for the future based on how the Green Store operates to date? Most of the new technologies and equipment used at Stamata’s Green Store will be used at all our new stores that will open from now on. As mentioned above the benefits of these new technologies such as photovoltaic panels or wind generators—that also need special permission and infrastructure—will be examined and evaluated and depending on the energy or cost savings that can be achieved we will further apply them to new or renovated stores.
Innovat i Resour on ces
Organizations OECD The Organisation for Economic Co-operation and Development (OECD) publishes an extensive range of information and statistics on diverse subjects, including science, technology and innovation, much of which is freely available. The site holds a great deal of information on a wide range of topics. www.oecd.org
EU Gateway The EU publishes a gateway to news and information about scientific research and technological development in the European Union. The site links to information on current and past research activities and to information on EU funding for research. www.eu-gateway.eu
CORDIS CORDIS is the European Commission’s information service on European research and innovation activities. The site includes details of projects, funding, contacts (EU and national. cordis.europa.eu
CORDIS also provides the Articles on Innovation site aoi.cordis.lu
Eureka! Eureka! is a pan-European network for marketoriented, industrial R&D that offers access to knowledge, skills and expertise across Europe. www.eurekanetwork.org
Technology Administration Technology Administration is the government agency that promotes technology and industrial innovation. The site also links to the National Institute of Standards and Technology (NIST), responsible for the standards and measures needed in the conduct of business; the National Technical Information Service (NTIS), which collects and disseminates science and technical information. www.technology.gov/
Office of Science and Technology Policy The US Office of Science and Technology Policy serves as a source of scientific and technological analysis and judgment for the US president.
Books Good to Great: Why Some Companies Make the Leap... and Others Don’t by Jim Collins The Ten Faces of Innovation by Thomas Kelley and Jonathan Littman Seeing What’s Next: Using Theories of Innovation to Predict Industry Change by Erik Roth, Clayton Christensen and Scott Anthony The Art of Innovation: Lessons in Creativity from Ideo, America’s Leading Design Firm by Tom Kelley Seeing What’s Next: Using Theories of Innovation to Predict Industry Change by Erik Roth, Clayton Christensen and Scott Anthony Making Innovation Work : How to Manage It, Measure It, and Profit from It by Tony Davila, Marc J. Epstein, Robert Shelton The Medici Effect: Breakthrough Insights at the Intersection of Ideas, Concepts, and Cultures by Frans Johansson Harvard Business Review on Innovation by Clayton Christensen Open Innovation: The New Imperative for Creating and Profiting from Technology by Henry William Chesbrough Get Back in the Box: Innovation from the Inside Out by Douglas Rushkoff Harvard Business Review on Breakthrough Thinking by Teresa Amabile
More http://www.gocreate.com/ An Innovation and Creativity Center Online http://www.innovationtools.com/ Resources on business innovation, creativity and brainstorming http://www.innonet.org/ Innovation Network is a nonprofit evaluation, research, and consulting firm. http://www.globalideasbank.org/ site/home/ The Global Ideas Bank aims to promote and disseminate good creative ideas to improve society. It further aims to encourage the public to generate these ideas, to participate in the problem-solving process. www.creativityatwork.com Creativity at Work is a consulting, coaching and training alliance
‘If you don’t like something, change it. If you can’t change it, change your attitude. Don’t complain.’ — Maya Angelou
www.ostp.gov
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 37
ΝΟRΤΗΕRN GREECE TODAY
by Mike Politopoulos Mike Politopoulos is CEO of GP Chemicals Inc. in North Bergen NJ, the partner of Macedonian Thrace Brewery SA (Maker of Vergina Beer) in Komotini Greece.
Yes We Can!!
R
umors of impending doom paralyze an already disheartened society. Yes, no question, things are bad. This is a serious hangover after a decades long debaucherous party. Yet, there is always a day after, and this is it. The debt may not yet have been restructured and economic indices may still face steep declines ahead, yet, even in Germany in December ‘44 some were planning for 1946 even before Berlin fell. Life goes on, you pick yourself up and start all over again, as per Old Blue Eyes. Its time to create. Its time to embrace the notion that the business of Greece is business. Its time to roll up our sleeves and launch a new enterprise. This is the way. There is no other way. This is the time for Greek society to grasp the concept that entrepreneurship is a solemn social function. This is the twilight of the robber-baron and the dawn of the enlightened entrepreneur. The death of the taker and the birth of the doer. The demise of those who relied on government favoritism to accumulate great wealth to great social detriment, the rise of those who view Greece as a launching pad
for quality products and services for world markets. Ask not what Greece can do for you, ask what you can do for Greece, and the personal and social rewards will be deservedly reaped in due time. Greek politicians are rapidly realizing the importance of supporting businesses whose profits are commensurate to the social benefits they impart. We believe starting in the months to come bureaucracy will be tamed, processes simplified and the legal framework will be improved. We believe so because it takes a momentous crash to foster change and the crash has practically occurred. The path forward for our country is the path we failed to take after WWII. That of a free economy that values law and order. Taking the wrong fork back then led us to a landscape littered with poorly planned and unappealing cities, poorly educated people, poorly administered justice and healthcare, poor infrastructure and worst of all a landscape devoid of creativity. But if we now courageously admit the mistake and move over to the right path only good things will happen. This is quietly transpiring but needs some collective dose of enthusiasm
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The unrelenting avalanche of negative news and events have cast gloom upon the land. Nerves are taught and the path forward unclear.
to build up momentum. In this essay I want to spread some contagious optimism. We are not essayists but entrepreneurs. And with exuberance we are embarking on new manufacturing projects in Greece where this country enjoys a competitive advantage, aimed at export markets. Lower costs resulting from the crisis make this a propitious time to invest. And the apparatchik - obstacles are rapidly disappearing as a species. Some talk of risk of riots and violence on the part of a disheartened, disillusioned public. We brush such talk aside. People need jobs, need to take care of themselves and their families. They will soon realize that their friend is not the vote buying politician who dangled the promise of effortless perpetual public sector employment, depriving them of real skill development to meet real world challenges. They are soon to realize that their friend is the socially conscious entrepreneur who cultivates his team’s talents for the benefit of their enterprise and consequently for that of society as a whole. This is the time and this is the place to rebuilt, and, Yes We Can.
NORTH ER
GREE N CE Fur has been manufactured in Kastoria and Siatista since the 14th Century. ❚ Fur is back in fashion. During the last few years an increasing number of designers and fashion houses include fur in their collections as a full fur garment, trimming or accessory. The reintroduction of fur has brought important changes in the material itself and in the type of garments manufactured by it. The medium age of customers has decreased by up to 10 years as the modern image of fur is also appealing to younger ages.
Fur
Prospects
A Vital Economic Force
F
rom the 16th century and afterwards, when the demand of furs increased, not only as protection from the cold, but also as a symbol of social status, Greek fur manufacturers began importing raw material from abroad and supplying Europe with fur garments. In 1894 the first fur sewing machine was imported to Greece—up to then fur was sewed by hand, and the industry began to adapt to the technology available at that time. After 1950, the sector developed rapidly and Kastoria and Siatista become main international fur production centers.
The Greek Fur Industry The Greek fur industry functions in a way that ensures the responsible use of renewable natural resources. Raw materials originate from breeding farms that operate under strict specifications. The secrets of fur manufacturing are bequeathed from father to son and the modern development of the industry, combined with tradition, has resulted in the products’ distinguished characteristics that has made it recognizable in international markets.
The International Fur Market During the last five-years the international fur market has stabilized, due to a number of factors: ❚ The economies of Western countries are in recovery and in many countries and environment is more favorable to the consumption of luxury items. ❚ The opening of new markets, such as Eastern Europe, in which fur products have a big demand, not only as a symbol of wealth and high social status, but mainly because of the climatic conditions. Also, China, Hong-Kong, and South Korea have entered the fur industry dynamically, both in production and trade of readymade fur garments, with most of the production intended for internal consumption.
The industry is still recovering from the crisis from which it suffered during recent years. Nevertheless, The potential is great. If global recovery continues and the Greek Industry markets’ its products well, the future will be positive. The furriers of Kastoria and Siatista, with a mastery of modern techniques and technologies, and aware of the demand trends of the world’s markets, are investing dynamically in the future of the sector. The most encouraging sign for the future of the sector in the region is the commitment of a new generation of furriers to preserve their trade, combining the knowledge of their forebears with the possibilities of new technologies and the demands of contemporary design. The creation of permanent showrooms in the major international markets, together with the substantial infrastructure development in Kastoria and Siatista over the past ten years, will contribute to the further reinvigoration and upgrading of the sector.
Today, in Kastoria and Siatista 15,000 people work in the fur sector, 65% of the total employment in the region. In Siatista there are 950 enterprises active in the sector. Of 8,000 inhabitants, 1.800 are fur makers and exporters, employing a work force of 4,000 craftsmen and employees. Foreign currency entering Greece annually from Siatista’s fur exporters reaches 50 million dollars. Siatista and Kastoria control 20% of the global leather processing market.
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 39
In Profile
Representing U.S. Firms in Greece ELANCO HELLAS S.A.C.I. is a Greek company established in 1984. The main purpose of the company is the importation and selling of Agrochemicals and Animal Health medicines, Seeds and Pet food products in Greece. ELANCO HELLAS S.A.C.I. is the exclusive distributor of several American companies, such as ELI LILLY for animal health products. Also is the distributor of DOWAGROSCIENCES for agrochemicals, FMC for insecticides and PHYTOGEN for cotton seeds. www.elanco.gr
ELIDOC SYSTEMS AND SERVICES is a company engaged in the delivery of Automation Solutions in the field of Library, Archive, and Museum Information Systems. Additionally it is also active in Document Management, Portals and e-Learning Systems. It generally distributes State of the Art Systems developed in the US, Canada or Europe , localizes them for the Greece and installs, supports and adapts the relevant systems to customer needs. It also identifies Open Source Software and supports the Universities and Government Agencies in their optimum exploitation. It offers a wide range of services (Cataloging, Documentation and Digitization) and proposes all the required equipment - shelves , RFiD, bar code and other accessories - to achieve efficient storage of books periodicals and documents. www.elidoc.gr
INTEC-INDUSTRIAL TECHNOLOGY Ltd supplies Industrial Equipment, Automa-
tion, Chemicals, Catalysts, Technical and Consulting Services to the Greek Industrial market. INTEC specialize in the representation of multinational companies, acting as their local organization, supporting and coordinating all phases of their business activity. INTEC are active in the Energy and Oil & Gas Sectors with emphasis on Petroleum Refineries and Petrochemichals. For over 30 years INTEC is dedicated to providing state-of-the-art solutions, having successfully implemented important projects. Particularly in Refineries, where they maintain a strong presence and relationships, in cooperation with the companies they represented, INTEC is the leading supplier of advanced technologies.
LEARNING SYSTEMS CONSULTING GROUP is a Training & Consulting company, conducting successful business since 1993. Key to its success is its continuing emphasis on helping organizations translate business strategies into business results by developing the skills and performance of their people. Learning Systems has strong strategic partnerships with prominent companies like AchieveGlobal, Profiles International, Tracom Corporation and Learn.com to extend the value-added capabilities it can provide to clients with uniquely combined performance improvement solutions.
MALVA S.A. has been the leading provider, since its establishment in 1988, of cutting-edge technologies in regulated analytical and quality control laboratories and in Academia across Greece and abroad. During its history Malva has
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Representatives of U.S. firms in Greece play a vital role in marketing U.S. products and services. Business Partners presents a select list of companies that distribute American products in the Greek market.
gained reputation by being one of the first to introduce new analytical technologies in the local market. The recent installation of the first MALDI-TOF mass spectrometer in the Balkan area has confirmed its position as leader in the respective market. Malva provides solutions that meet specific customers’ application needs based on liquid and gas chromatography, mass spectrometry, filtration technologies, laboratory water purification, laboratory automation, thermal analysis, laboratory informatics and general laboratory supplies. www.malva.gr
SCICOM, founded in 1981, is an IT solutions provider for Greece & Cyprus. Our core strengths are in the Implementation of Business - Mission Critical - Software Solutions, utilising state of the art technologies for Business Performance Management and Decision Support. Our Solutions cover all Operational Application (ERP, CRM, SCM, Retail, WMS, MP), focusing mostly on Management Information. SCICOM has skilled IT professionals with extensive experience in Business Software and builds to customers intelligence systems for their business needs. We provide services in Business Analysis, System Design & Development, Project Management, Installation, Implementation, Consulting, Training, Maintenance & Technical Support. www.scicom.gr
MarketWatch
by Stelios Psomas Policy Advisor, HELAPCO
Which country has the best incentives for the installation of residential photovoltaic (PV) systems? healthy and robust market. New renewable energy legislation (Law 3851/2010) was passed by the Greek Parliament in mid-2010 bringing important changes in the legal-administrative framework. Furthermore, there were some new Ministerial Decisions which have lifted certain bureaucratic barriers. As a result of these positive developments, thousands of potential investors have expressed interest in PV. This has led to a grid bottleneck as it is practically impossible to facilitate the connection of all these systems at once. It will therefore take some time before many of these projects can take off. In 2010, despite the deep financial crisis, the Greek PV market nearly quadrupled com-
The Greek Photovoltaic Market
A Positive Outlook
The best regime is here in Greece!
I
f your answer is Germany, the leading country worldwide in renewable energy, then you are wrong! Surprisingly enough, the best regime is here in Greece! Amidst an unprecedented financial crisis, the Greek government has taken bold initiatives for the development of residential solar systems, offering not just generous financial incentives but also simplifying the authorization procedures as well. Any citizen, who wants to install a solar system with a capacity of up to 10 kilowatts on their roof, can do so easily, simply by visiting the local electricity company office. A second positive surprise comes from the banking sector. Practically every bank in Greece now offers up to 100% financing for the installation of residential PV systems. No wonder then why thousands of people applied for such systems in the last few months.
The situation was not as easy a few months ago, and it is still not a piece of cake when it comes to bigger commercial PV systems. The first Greek legislation for PV was introduced in 2006 offering generous feed-in-tariffs (a premium for selling green electricity to the grid) and setting the details for authorization of PV systems. These authorization processes were, however, complicated and certain procedures were long-lasting or even unnecessary. As a result, and despite the good financial incentives, the Greek PV market developed very slowly in the last four years, and thousands of applications have piled up, mainly due to the legal-administrative barriers imposed. The Greek PV sector has been very active in trying to convince the relevant decision makers that a much simpler and effective framework is needed in order to develop a
pared to last year. New installations reached 150 MWp in 2010 and are expected to be twice as much in 2011. PV is probably the only sector which shows strong development trends in Greece. This development has created thousand of new jobs. Some 4,250 full time jobs have been created in the last four years in the manufacturing and installation of PV systems. Six manufacturing plants are now operating in the country and hundreds of companies are offering their services in trading, procuring and installing photovoltaics. In the meantime, the Greek government has set a target of 2,200 MWp by 2020, a target which seems rather conservative when considering the current boom. ď ľ For more information, visit the site of the Hellenic Association of Photovoltaic Companies (HELAPCO, www.helapco.gr)
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 41
Energy Today
AEGEAN POWER
Addresses All Your Electricity Needs
A
EGEAN POWER, a member of the AEGEAN Group of Companies, is the largest Greek private company in the trade of retail and wholesale electricity. Its leading position in the Greek market results from the combination of the power and prestige of the AEGEAN Group of Companies with the AEGEAN POWER personnel’s expertise and know-how. This synergy allows us to offer our customers, whether Businesses or Households, integrated energy solutions, always at competitive prices and of the highest quality.
For Businesses At AEGEAN POWER we know how to reduce the electricity costs of a company, contributing to the reduction of its overall operating costs. Today, our business customers cover the full spectrum of the market, including major Commercial Groups, large Retail Chains, Super Markets, Hospitals, Medical Groups, Pharmaceutical companies, Construction companies, companies from the Entertainment and Catering segments, and others. The AEGEAN POWER Business Energy proposition for Companies offers: ❚ Competitive prices ❚ Significant discount rates ❚ Straight forward pricing ❚ Fast and effective processes ❚ Advanced services
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AEGEAN POWER’s objective is to always be next to the Greek consumer, with energy products at the most competitive prices of the market, and with advanced, customer-friendly services For Households AEGEAN POWER’s primary objective is to cover Households’ various electricity consumption needs. The AEGEAN POWER Energy HomePack product range has been created to bring a new era to the retail electricity market. AEGEAN POWER Energy HomePacks offer a certain bundle of kWh, at a fixed monthly charge, providing consumers with economy and control. By selecting AEGEAN POWER Energy HomePack 1000, Energy HomePack 1700, Energy HomePack 2400, Energy HomePack 3500, or Energy HomePack Unlimited, consumers ❚ Buy the electricity they really need, cheaper ❚ Ensure a regular discount to their electricity bill ❚ Become informed of what they should really pay for electricity only ❚ Gain control of their electricity consumption ❚ May switch HomePack program if their needs change ❚ Do not have to pay, any longer, fixed fees for their night consumption ❚ Do not receive, any longer, ‘advance charge’ bills Moreover, AEGEAN POWER has formulated the Energy HomeBasic product, which offers a low monthly fee and a competitive charge per kWh, to address consumers who use their home occasionally (for instance, a country or vacation home).
AEGEAN POWER Advanced Services Prompt, Friendly and Effective Customer Service AEGEAN POWER has created a well-trained and effective Customer Service department, where every customer or interested party may call, by simply dialing 18211, for any question or clarification she/he needs. Additionally, AEGEAN POWER has opened its first Retail Store, in Kolonaki Square, 5, Koubari str., initiating a new era in the Greek retail energy market. In the store visitors may enjoy personalized service as well as directly request any information they need about AEGEAN POWER’s proposition for Βusinesses, Ηouseholds or Photovoltaic Systems. Plus, existing customers may pay their AEGEAN POWER bill directly in the Store.
‘Get Your Bill Electronically’ Service Customers may ask to get their bills electronically, to their e-mail account or through AEGEAN POWER’s web-site www.aegeanpower.com, saving time while contributing to environmental protection.
‘Pay your Bill’ Service AEGEAN POWER offers alternative payment methods to facilitate customers when paying their electricity bill. More specifically, customers may choose to pay by cash, check, ELTA, bank deposit, web or phone banking or, even, on-line via www.aegeanpower. com using their credit card.
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 43
The International Gemological Institute (IGI) announced the graduation of its inaugural polished diamond grading class in Greece, which was organized along with Greek gemologist and former IGI student, George Spyromilios. Due to its success, IGI is already planning to have a second class in Athens in early 2011. The six-day course was led by Jean Mangmay, IGI worldwide head of education. Fourteen students learned how to grade for clarity, color and cut of diamonds using myriad diamond samples and gemological equipment, and now have the skills to identify, grade and understand diamonds according to world grading and market standards. They were also awarded the IGI diploma in polished diamond grading. Most of the students were jewelers from Athens, Thessaloniki and Crete, who wanted to further their education in order to increase sales. Roland Loriè, IGI president, stated, “We at IGI recognize the importance of gemological education in burgeoning markets such as Athens. Graduates from IGI’s School of Gemology possess valuable skills that directly translate to consumer confidence – something IGI works persistently to ensure. We look forward to continuing to grow our educational offerings in Greece and globally.”
Social Media Sites to Know
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Gemological Training
W
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TRENDS & TRADE MAKERS
Facebook.com Sharing everything with family and friends Youtube.com Video Twitter.com Short message and link sharing Flickr.com Image community MySpace.com Music and gossip StumbleUpon.com Discovery/browsing of popular sites Delicious.com Bookmarks Tumblr.com Media sharing and mini-blogging Digg.com Odd, tech, gaming and Apple news Reddit.com News and rants Metacafe.com Video Diigo.com Bookmarking and net research tool Scribd.com Reading share Blogcatalog.com Blogs by category Technorati.com Blog media
Consumer Trends—2011 1. RANDOM ACTS OF KINDNESS In 2011, expect companies to monitor consumers’ public moods and act upon them with random acts of kindness...marketing may never be the same...
2. URBANOMICS Are you ready for hundreds of millions of more daring, more experienced consumers? Oh, and that’s just one side effect of rapid global urbanization...
3. PRICING PANDEMONIUM Flash sales, group buying, GPS-driven deals: in 2011 pricing will never be the same...
4. MADE FOR CHINA (IF NOT BRIC) In 2011, expect an increasing number of ‘Western’ brands to launch new products or even new brands dedicated (if not paying proper respect) to consumers in emerging markets...
5. ONLINE STATUS SYMBOLS In 2011, you can’t go wrong supplying your (online-loving) customers with any kind of
symbol, virtual or ‘real world’, that helps them display to peers their online contributions, creations or popularity...
6. WELLTHY As good health is now as important to some consumers as having the biggest, newest or shiniest status symbols, growing numbers of consumers will expect health products and services in 2011 to prevent misery (if not improve their quality of life), rather than merely treating illnesses and ailments...
home countries, but on a global scale...
9. PLANNED SPONTANEITY With lifestyles having become fragmented, with dense urban environments offering consumers any number of instantly available options, and with cell/smartphones having created a generation who have little experience of making (or sticking to) rigid plans, 2011 will see full-on PLANNED SPONTANEITY...
10. ECO SUPERIOR 7. SOCIAL-LITES AND TWINSUMERS Expect even more consumers to become curators: broadcasting, compiling, commenting, sharing and recommending content, products, purchases, and experiences to both their friends and wider audiences...
When it comes to ‘green consumption’ in 2011, expect a rise in ECO-SUPERIOR products: products that are not only ecofriendly, but superior to polluting incumbents in every possible way...
11. OWNER-LESS 8. EMERGING GENEROSITY In 2011, brands and wealthy individuals from emerging markets (yes, especially China) will increasingly be expected to give, donate, care and sympathize versus just sell and take. And not just in their
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2011 could be the year when sharing and renting really tips into mainstream consumer consciousness as big brands and governments put their weight behind this cultural shift... www.trendwatching.com.
Leading with an Optimistic Vision (part1) βυ Georgia Kartsanis
Master Coach & CEO, Sargia Partners
Food Trends—2011 According to the U.S. National Restaurant Association’s “What’s Hot in 2011” survey, the top 10 menu trends for 2011 will be locally sourced meats and seafood, locally grown produce, sustainability as a culinary theme, nutritious kids’ dishes, hyper-local items, children’s nutrition as a culinary theme, sustainable seafood, gluten-free/food allergy-conscious items, back-to-basics cuisine and farm-branded ingredients. Thirty percent of the chefs said that mobile food trucks and pop-up restaurants will be the hottest operational trend in 2011; 18 percent said restaurants with gardens will be the top trend, and 17 percent said social media marketing. Rounding out the top 20 hot menu trends are artisan liquor, locally-produced wine and beer, smaller portions for a smaller price, organic produce, nutrition as a culinary theme, culinary cocktails, newly fabricated cuts of meat, fruit/vegetable children’s side items, ethnic-inspired breakfast items and artisan cheese.
E.U. EtoCtheTOfficial TED (Tenders Electronic Daily) is the online version of the ‘Supplement R I D Journal of the European Union’, dedicated to European public procurement. What is TED?
How can I benefit from TED? TED provides free access to business opportunities. It is updated five times a week with approximately 1500 public procurement notices from the European Union, the European Economic Area and beyond. You can browse, search and sort procurement notices by country, region, business sector and more. Information about every procurement document is published in the 23 official EU languages. All notices from the European Union’s institutions are published in full in these languages.
Why should I register on TED? • To access the entire content of TED, including the archive. • To personalise search profiles, according to your needs. • To get e-mail alerts based on your search profiles. • To personalise RSS feeds for your web sites and RSS readers. Registration and usage of TED is absolutely free, and will remain so.
When written in Chinese, the word “crisis” is expressed with the two characters 危机. They may be interpreted as “danger” and “possibility,” leading some people to suggest that a crisis represents a “dangerous opportunity.” This ideogram encapsulates the seemingly paradoxical nature of crisis leadership. Most needed during these times of transformation and crisis is resilient leadership. The most fundamental challenge for those who exhibit this quality is the ability to recognize the true nature of a crisis and the hidden potential within it. Here are the first two steps in applying optimism to resilient leadership: 1B uild a compelling vision that inspires. Take the time to develop a deep sense of mission and purpose, to get really clear about what you want for your organization and the unique value you can provide. In the words of Peter Drucker - “the best way to predict the future is to create it”. 2 Practice possibility thinking. We have an amazing ability to construct our inner world and outlook, to use self talk to either build ourselves up, or tear ourselves down. Give yourself permission to reframe your thoughts, to focus on the opportunities not the negative consequences - the 90% that we still have rather than the 10% we have lost. See bad events as setbacks, transitory not permanent and focus on what you can do to energize and build growth. Remember, crisis represents a dangerous opportunity! www.sargiapartners.com
http://ted.europa.eu/TED
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 45
Purchase power parity in US $
Population in millions
> $20,000
$1,500 - $20,000
$1,500
TIER 1
75-100
TIER 2 - 3
1,500 - 1,750
4,000
TIER 5
Hart of Cornell University and the first empirical article, Reinventing strategies for emerging markets: Beyond the transnational model, by Ted London of the University of Michigan and Hart. London has also developed a working paper, commissioned by the United Nations Development Programme, that explores the contributions of the BoP literature to the poverty alleviation domain.
Market-specific products
TIER 4
> $1,500
am
In economics, the bottom of the pyramid is the largest, but poorest socio-economic group. In global terms, this is the 2.5 billion people who live on less than $2.50 per day. The phrase “bottom of the pyramid” is used in particular by people developing new models of doing business that deliberately target that demographic, often using new technology. This field is also often referred to as the “Base of the Pyramid” or just the “BoP.” Several books and journal articles have been written on the potential market by members of business schools offering consultancy on the burgeoning market. They include The Fortune at the Bottom of the Pyramid by C.K. Prahalad of the University of Michigan, Capitalism at the Crossroads by Stuart L.
ch am
Bottom of the Pyramid
@
info
B2B
One of many examples of products that are designed with needs of the very poor in mind is that of a shampoo that works best with cold water and is sold in small packets to reduce barriers of upfront costs for the poor. Such a product is marketed by Hindustan UNILever.
Dining: For Business and Pleasure
Kavatza Easy Does It
Think Estiatorio redux. Think value. Think comfort and an alternative that is easy on the wallet. On Spefsippou in Kolonaki, this new neighborhood venue hits the right buttons at the right time, serving Greek food in a clean, well-lighted room. With prices reminiscent of “the old days,” a maitre that makes you feel welcome, and an appealing mix of starters, salads, cooked dishes, and grilled items, Kavatza attracts a smart crowd that appreciates being looked after with its interest in mind—not the vanity of a restaurateur who might make a clientele feel bad for not wanting to pay more. Traditional starters with a modern stroke
of hand—black eyed peas, grilled peppers, potato salad, cous cous with mint—invite the practice of sharing, and at prices ranging from 2.70 to 5 Euros, do not diminish the appetite. A variety of soups are also
46 | BUSINESS PARTNERS | JANUARY-FEBRUARY 2011
served—a practice less and less common in Athens. And mains—pastichio, rice with cabbage, meatballs, chicken youvestsi, a rib eye—respond to the comfort food longings increasingly more difficult to satisfy. A separate room in the rear is ideal for a small group—one night I was there a ministerial office was having a modest holiday get together—and with wine at 3.60 Euros a kilo, modesty is indeed ensured. Kavatza is open Monday-Saturday, from 12:30 to 23:00. Kavatza Spefsippou 30, Kolonaki Tel. 210 724 1862
The Business Bookshelf
Business Model Generation A Handbook for Visionaries, Game Changers, and Challengers
by Alexander Osterwalder and Yves Pigneur, Wiley
Disruptive new business models are emblematic of our generation. Yet they remain poorly understood, even as they transform competitive landscapes across industries. Business Model Generation offers powerful, simple, tested tools for understanding, designing, reworking, and implementing business models. Business Model Generation is a practical handbook for anyone striving to improve a business model — or craft a new one. Business Model Generation is co-authored by 470 Business Model Canvas practitioners from 45 countries and was financed and produced independently of the traditional publishing industry. Business Model Generation is for those ready to abandon outmoded thinking and embrace new, innovative models of value creation: executives, consultants, entrepreneurs — and leaders of all organizations.
Jargonaut Banana Problem
Business slang for a project that does not require a great deal of technical expertise; that is, a big dumb gorilla could handle it.
Behavioral Targeting
a.k.a. BT The holy grail of interactive media is to be more targeted. Behavioral targeting is when the online advertiser places the message in the path of the user, based on the user’s past behavior.
Cockroach
A problem that is at first perceived to be small, but than leads to the introduction of many other problems.
digitally grounded
A form of punishment given to children
False Drop
A term that refers to search results that are not relevant to the user’s query.
Fingerprint
THE LIST
by Travelogue
Collecting personal digital information to track users’ online behavior
Napa, California By Andreas Stylianopoulos President, Navigator Travel & Tourist Services Ltd
The Napa area of California is well known for Cabernet Sauvignon, Chardonnay and Merlot wines. Sonoma is famous for Zinfandels and Syrah. Wineries Artesa Vineyards
Artesa Vineyards & Winery, at Carneros. Frog’s Leap at Rutherford Nickel & Nickel, at Oakville Preston of Dry Creek, organic winery, at Healdsburg.
Auberge du Soleil
To stay Auberge du Soleil, at Rutherford Carneros Inn, at Carneros
Carneros Inn
Homeshoring
a.k.a. cyberagents Refers to the growing trend of shifting many jobs so that the employee works out of his or her home instead of the office
M-Commerce Mobile commerce
On Velvet
Slang for “sitting pretty,” it means things are going very well.
Typosquatting
The act of parking (or registering) domain names that are misspelled in order to cash in on errant key stroke Reproduced by Permission © 1994-2010 NetLingo® The Internet Dictionary at http://www.netlingo.com
Poetry Inn, at Stag’s Leap
JANUARY-FEBRUARY 2011 | BUSINESS PARTNERS | 47
ViewPoint
Welcome Posted: August 17th, 2010 | Author: kosta | Filed under: Uncategorized | 4 Comments »
We are all members of the information society. Many of us are digital natives. We have multiple facebook, twitter, and gmail accounts. We are connected to our friends, family, co-workers, the news, television and every single form of media imaginable. Information is at our fingertips. We command Wikipedia to answer our questions, dictionary.com and thesaurus.com help us to be articulate, and google fills in the blanks.
We believe, as do most of you, that internet access is a human right.
These are tools that we use everyday, and we wouldn’t know what to do without them. But we are lucky, and if you are reading this—so are you. You are one of the 1.7 billion with internet access.
www.ahumanright.org/
Since December 2009 we have been working on a little project. We believe that the internet, with all it’s shortcomings, has changed what it means to be human. No longer does the disemination of ideas take months, years, or lifetimes– instead the transaction of knowledge is almost instantaneous. Anyone with the ability to get online has a digital voice that can be heard around the globe. We are all connected. And as the internet has enabled this, we believe that we need to assure it’s continued availability, and growth. Only 26% of the world’s population is online, there exists no failsafe mechanism for when disaster strikes rendering networks inoperable, and the developing world lags far behind. From all over the world we are working to build a network that will allow most everyone to use the internet, free-from-cost. A world wide ubiquitous network that will allow most anyone access. We believe, as do most of you, that internet access is a human right. We plan to enforce that human right, because– unlike some of the more challenging human rights, this is a something that can be accomplished quickly. Soon, internet access, will be as easy to come by as the air you breathe. We would like you to invite you to join us in delivering internet access to the whole of mankind. Kosta Grammatis
The American-Hellenic Chamber of Commerce
BUSINESS
Become a Member
Subscribe
To become a member of the American-Hellenic Chamber of Commerce, one of Greece’s most preeminent and proactive business organizations, apply on the Chamber website at www.amcham.gr, send an e-mail to info@amcham.gr, call the Chamber at 210-699-3559, or fax the Chamber at 210-698-5687-7 and request an application form.
To subscribe to Business Partners, send an e-mail to info@amcham.gr, call the Chamber at 210-699-3559, or fax the Chamber at 210-698-5687-7.
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AMERICAN-HELLENIC CHAMBER OF COMMERCE www.amcham.gr
AMERICAN-HELLENIC CHAMBER OF COMMERCE
AMERICAN-HELLENIC CHAMBER OF COMMERCE
HEAD OFFICE: 109-111 Messoghion Ave., Politia Business Center, GR 115 26 Athens, GREECE PHONE: +30 210 699 3559, FAX: +30 210 698 5686, 210 698 5687, 210 699 5033 E-mail: info@amcham.gr | www.amcham.gr BRANCH OFFICE: 47 VAS. IRAKLEIOU Str., GR 546 23 THESSALONIKI, GREECE, PHONE: +30 2310 286453