SME Advisor Middle East - November 2013 by SME Advisor Middle East

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Issue 96 NOVEMBER 2013 EXCLUSIVE TELECOM PARTNER

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Webmaster Majed Al Suwaidi talks Connectivity

Cashflow is king Boost resources with flexible office terms

Meet the mind guru Smart thinking with Tony Buzan

Office on-the-go Discover the power of Tele-Business

Recipe for success HE Ahmed bin Hareb Al Falahi and the Dubai World Hospitality Championship

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Publisher Dominic De Sousa Group COO Nadeem Hood Managing Director Richard Judd richard.judd@cpimediagroup.com +971 4 440 9126 EDITORIAL Senior Editor Paul Godfrey paul.godfrey@cpimediagroup.com +971 4 440 9105 Sub Editor Rushika Bhatia rushika.bhatia@cpimediagroup.com +971 4 440 9115 ADVERTISING Commercial Director Chris Stevenson chris.stevenson@cpimediagroup.com +971 4 440 9138 Media Sales Executive Emma Hughes emma.hughes@cpimediagroup.com +971 4 440 9120 Events Sponsorship Manager Gill Fairclough gill.fairclough@cpimediagroup.com +971 4 440 9148 PRODUCTION AND DESIGN Production Manager James P Tharian james.tharian@cpidmediagroup.com +971 4 440 9146 Circulation Manager Rajeesh M rajeesh.nair@cpimediagroup.com +971 4 440 9147 Head of Design Fahed Sabbagh fahed.sabbagh@cpimediagroup.com +971 4 440 9107 Designer Froilan A. Cosgafa IV froilan.cosgafa@cpimediagroup.com +971 4 440 9107 Photographer Jay Colina Abdul Kader Pattambi DIGITAL SERVICES www.smeadvisor.com Digital Services Manager Tristan Troy Maagma Web Developer Abey Mascreen online@cpidubai.com +971 4 440 9100 Published by

Innovation is not the same thing as entrepreneurism

here’s a kind of ‘urban myth’ that the entrepreneur - especially the entrepreneur who is in some way a ‘maverick’ who couldn’t possibly fit into a regular corporate mould - will automatically start a business that’s highly innovative or specializes in innovative services. There’s no chance, the assumption goes, that he or she will do the same old thing that the company next door has been doing for decades. The reality is very different. There’s nothing automatic about innovation. It doesn’t happen as a matter of course or just drop into place the moment you set up a new business. Quite the reverse: it requires constant nurturing, review and a solid intention to innovate. The fact is that most SMEs (just like most large businesses too) aren’t great innovators, even if they’re run by company owners who certainly make the grade as entrepreneurs. No, innovation is something very different - and the fact is that it’s simply the most important ingredient in business success. In a recent conversation, Alexandar Williams, Director, Strategy and Policy Division, Dubai SME, put this very well when he said: “Innovation is crucial for all enterprises in all stages of growth and in all industries. Building innovation and the capabilities surrounding it requires organisational development, financial and investment management skills and marketing capabilities to name a few. For startups and SMEs, an innovative idea, product or business model is all they have to start with - and therefore, they need to sustain it, grow it, monetize it, enhance its value and, later, diversify.” If ever proof was needed, take just about any business in the newly-announced Dubai SME 100. You might expect to find businesses that had grown uber-successful on the back of raising finance against secure, tried and tested ideas - and you would be wrong. Then list is actually a rocket-fuelled collection of unusual retail concepts, highly inventive, progressive agencies and breakaway, lateral-thinking service providers. Along with meeting the needs of an incredibly discerning financial and strategic review, these companies are prized for their sheer innovation. The same is true in our own ADCB Stars of Business awards, which I’m proud to say is simply the largest and most influential SME event of its kind. Here, the Judges look for high levels of innovation and firm evidence to show that not only has there been strong innovation in the way the business performed and oriented itself in the last year, but that that there will be continued focus on product review and innovative product, service and market strategies. We do this because there’s no business more deserving than the one that innovates its sector and reaps a string bottom line as a result. Enjoy this issue of SME Advisor.

Paul Godfrey Senior Editor

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November 2013

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Issue 96

November 2013

CONTENTS

26 RECIPE FOR SUCCESS HE Ahmed bin Hareb Al Falahi and the Dubai World Hospitality Championship

Editor’s note 03 Paul Godfrey on why innovation is not always the same thing as entrepreneurism. SHOPTALK 08 News and developments impacting SMEs in the region. Finance Focus 14 The latest financing opportunities for SMEs and allied financial services. SME ABOUT TOWN 18

Key events attended by SME owners and managers.

BANKING FOR BUSINESS 22

Can you handle it? We offer sound strategies to maximise your business capital.

Movers & Shakers 26 Something cookin’ – SMEs on the menu. An exclusive interview with His Excellency Ahmed bin Hareb Al Falahi, President of the Dubai World Hospitality Championship.

22 November 2013

CONTENTS

Most admired leadership coach – Mark C. Thompson. The world- renowned expert, venture capitalist and bestselling author gives excellent advice on how you can be the next entrepreneurial genius.

The Webmaster: Majed Al Suwaidi and technology’s one-stop shop. Profiling Dubai Internet City’s unique appeal to SMEs, its latest initiatives and the new innovation hotspot – in5.

Smart thinking with mind guru Tony Buzan. We meet one of the world’s highly-rated creative problem-solvers.

Business Innovation 44 The Innovation Imperative. Alchemy Network’s Simon Hodges spells out seven key strategies to boost success.

Workspace 48 Flexible office solutions – where cashflow is king. Working in a serviced office can have a liberating impact on your cashflow - Servcorp’s experts explain how. 52 56

Outsourcing your HR function – to do or not do. We asked Anu Daga, HR Manager at DHL Express UAE, to weigh in the pros and cons.

Tele-Business – using the power of mobility and data to drive business on the move. Vikram Chadha, du’s Vice President, SME Marketing, explains why connectivity is key.

Legal 60 Franchising in the GCC: taking (careful) advantage of the opportunity. Clyde & Co.’s Ben Smith and Joycia Young explain the profits and pitfalls.

Industry watch 62 In spotlight: Islamic finance. 63

Regional focus: business in Qatar.

Talent management in the UAE.

Treasury and finance trends.

Addressing youth unemployment.

TECHNOLOGY FOR BUSINESS 70 IT trends and tools that are reshaping business in the region. The next level… 76 Say hello to your new ‘first screen’ – the smartphone. The use of mobile applications can catalyse your SME’s growth. Arshad Zaheer, CEO, Crayons Communications, explains how.

SHOPTALK

UAE

Stepping stone to success: Corporate Governance

bdul Baset Al Janahi, Chief Executive Officer of Dubai SME, encouraged SMEs to embrace principles of corporate governance and shared his organisation’s nine pillars to achieving a robust corporate governance strategy. “Previously, the concept of corporate governance has been limited to larger, publicly-listed companies with diverse interests – smaller organisations were either intimidated by the prospect or thought it doesn’t apply to them,” said Al Janahi. He added: “Dubai SME now has more than 20 case studies of emerging businesses which have implemented our nine pillars of good corporate governance

SME Exporter of the Month Dubai Chamber of Commerce and Industry recognised four companies as SME Exporters of the Month for the time period between June to September 2013. Mondelez International Middle East emerged as the company with the Highest Export Value for the month of June 2013 while Global Gases Group gained recognition for being the company with the Highest Number of Markets Exported to for the month of July 2013. In addition, Can Pack Middle East LLC was highlighted as the company with the Highest Number

Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME

and can articulate the benefits in terms of growth, transparency and sustainability, setting an achievable example for the thousands of other SMEs currently operating here.” Dubai SME’s nine pillars include creating policies and procedures for management, developing transparency in shareholder relations, defining the role of advisory or executive boards, establishing accounting practices, and regulating communications with stakeholders and family shareholders.

of Certificates of Origin for the month of August 2013 and Nolte Middle East FZE received appreciation for being the Recent Startup Company with the Highest Export Value for the month of September 2013. His Excellency Hamad Buamim, President & CEO, Dubai Chamber, congratulated the representatives of the four companies as he presented them with a certificate of recognition and an SME Exporter of the Month trophy. In his welcome address, HE Buamim lauded the role of the trade sector which he said is a pillar of Dubai’s economy as the SME members play an essential role in its growth and development through their exports and re-exports.

One of Dubai SME’s most visible case study for corporate governance is Just Falafel, the region’s fastest-growing quick service restaurant chain, with outlets across the Middle East and United Kingdom. “Highly ranked within the Dubai SME100, Just Falafel is a role model for any emerging business in the region – the team established its corporate governance policy as a key driver for regional and international growth, and is reaping the rewards in terms of expansion and attracting franchise partners around the world,” continued Al Janahi. Launched in 2011 under the patronage of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, Dubai SME100 identifies the top-performing SMEs in Dubai to help groom them into larger and more sustainable enterprises. In addition to Just Falafel, Dubai SME has highlighted the challenges faced and benefits secured by other innovative organisations, including eHome Automation International, PropertyFinder.com, and Triple Crown Shipping & Logistics, in its corporate governance resource centre, available online.

He said: “This recognition, which comes in line with Dubai Chamber’s strategic objectives of creating a favourable business environment and supporting the development of business in Dubai, goes a long way in encouraging higher trade performance by our members while enhancing their competitiveness in the domestic and overseas markets.” Top officials of the recipient companies expressed their gratitude to Dubai Chamber for the support provided to them. They said the SME Exporter of the Month recognition encourages positive and healthy competition which yields benefits to their company and helped to increase the overall

competitiveness of Dubai businesses. Dubai Chamber launched the SME Exporter of the Month initiative in 2009, under the name SME Exporter of the Quarter. The initiative was changed in 2010 to make it a monthly event due to its popularity and success. The data for the selection of the recognition is retrieved from Dubai Chamber’s Certificate of Origin database. Each month, the selection is based on one specific criterion including the highest export value as compared to last year’s data, the highest number of markets exported to, the highest number of certificates of origin and the recent startup company with the highest export value.

Under the directive of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum Crown Prince of Dubai and Chairman of Dubai Executive Council

16 -18th November 2013

Continuing the Legacy of Emirati Hospitality

Zaabeel Palace Hospitality invites you to the inaugural chapter of the Dubai World Hospitality Championship 2013 (DWHC), a three day event which will feature competitions that highlight the cuisine, heritage and culture of the United Arab Emirates,

and encourage Emirati participation in the field of hospitality. In keeping with the true spirit of Emirati heritage, Dubai is opening its doors to the world this November through a unique first-of-its-kind hospitality event in the Middle East.

For further information please contact:

EMAIL INFO@DWHC.AE | TEL +971 4 336 9685

Opening Hours

Saturday 16 November Sunday 17th & Monday 18th November th

Organised by

Supported by

facebook.com/DWHCDubai twitter.com/DWHCDubai

11:00 to 22:00 09:00 to 22:00

instagram.com/DWHCDubai

Official Airline Partner

Official Hotel Partner

Official Media Partner

Official Sponsors

November 2013

SHOPTALK

DAFZA launches mobile application

t this year’s GITEX, Dubai Airport Free Zone (DAFZA) launched its new mobile application enabling users to access over 120 services quickly and effectively. “DAFZA’s unrivalled customer support will now be accessible to its clients round-the-clock. Users will have access to, and can request, over 120 services such as new business enquiries and

client directories that include details of over 1600 companies,” said Ayoub Ahmed Al Hammadi, Senior Director – Corporate Support Division at DAFZA. “The smartphone application is extremely easy to navigate, so we are expecting a large number of users to be able to boost efficiency and business effectiveness,” added Al Hammadi. “The introduction of this highly advanced system is aimed to enhance our clients’ competitiveness and shorten time to execute transactions.” Buthaina Hamad bin Fahad, Director of Information & Communication Technology at DAFZA said: “We are

New milestone for DEWA

His Excellency Saeed Mohammed Al Tayer, MD and CEO of DEWA

The World Bank Report 2014: Doing Business revealed that the UAE is ranked first in the Middle East and North Africa and fourth internationally for ease of access to electricity. “DEWA has achieved this new milestone in line with its vision to become a sustainable world-class utility, and in accordance with its commitment to achieving the vision of the UAE’s leadership, fulfilling the

Adel Ghafan, Senior Executive Director Engineering Division and Strategy, Ayoub Al Hammadi & Buthaina Hamad bin Fahad during the official launch of the app

living in an age where latest technology plays a crucial role in attracting and maintaining new and existing businesses. Dubai has rightly earned its reputation as a technology leader and we

directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and promoting Dubai’s position as a global hub for trade, finance, and tourism,” said His Excellency Saeed Mohammed Al Tayer, MD and CEO of DEWA. “Through our continuous efforts, we aim to enhance the efficiency of DEWA’s services to support the business environment in Dubai. We do this by providing energy supplies to meet a growing demand for electricity and supporting production and development projects in the Emirate,” added Al Tayer. “DEWA has an integrated system that includes effective initiatives and new developmental projects to achieve the highest levels of efficiency and reliability. DEWA has exerted considerable efforts to optimise its operations and services significantly; further enhancing its efficiency and services and reducing costs,” said Al Tayer. He continued: “We consistently work on simplifying transactions by adopting cutting-edge technologies and software to provide fast and

are determined to not only sustain that but also to build on it. We firmly believe in adopting the latest technology to strengthen Dubai’s vision to become one of the world’s leading smart cities.”

accessible services to our customers. Through this, we aim to secure sustainable electricity and water supplies to achieve the vision of our leadership. We continuously plan ahead to manage supply and demand for the future.” “DEWA has achieved very competitive results that surpass the private sector, even leading European and American companies, in efficiency and reliability. This is demonstrated by our reducing losses in electricity transmission and distribution networks to just 3.5 per cent, compared to six to seven per cent in Europe and the US. Network line losses in the water sector decreased to 10.8 per cent compared to 15 per cent in North America, setting another international benchmark, and highlighting our commitment to meet the growth in demand for water and promoting sustainability.” “DEWA’s results are some of the best internationally. For customer minutes lost per year, DEWA’s figures reached 5.78 minutes, significantly better than 16.4 minutes recorded by counterparts in the European Union,” concluded Al Tayer.

November 2013

SHOPTALK

UAE

Dubai World Hospitality Championship: A blend of culture and innovation

he Homemade and Innovative Products stalls at the Dubai World Hospitality Championship generated tremendous interest not only for the veritable feast that was on offer, but also for the enthusiastic participation of Emirati women from across the seven Emirates. The products on display were a testimony to the creativity and resourcefulness of the UAE national

women, who were rightfully proud of the special invite they received from His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister and Ruler of Dubai, to participate in the prestigious event. Each of them excelled in their chosen homebased business of various produces that have a contemporary take on classic Emirati items. A large part of the edible exhibits constituted sweets, pickles, spices and other food items that have their roots in Emirati culinary tradition. Delightful fusion finger foods that captured the best of classic Emirati and international cuisines included mouth-watering datefilled cupcakes and cookies that were available for sampling. “I was very proud to receive an invitation from our Ruler, and that was the first reason I decided to participate,” said Mariam Mohammed Rashed from Umm al Quaiwan. Mariam brought saman, or clarified butter, as well as home-blended spices, coffee, dates and Arabic vinegar as

“they are, and have always been, a part of our culture.” Ayesha Mohammed Al Marri from Dubai, whose produce included homemade dates-based sweets and sandwiches, said: “By participating in this Championship, I wished to pay tribute to this great nation and express my gratitude to the government for making an event of this magnitude possible.” Some of the products on display also included intricately hand-crafted pieces of crockery that were showstoppers by the sheer inventiveness of their designs. Mugs and jugs painted to resemble human faces, crystal embellished coffee sets, and lampshades made out of delicate chinaware were just some of the artefacts on show. Organised by the Za’abeel Palace Hospitality under the directive of His Highness Sheikh Hamdan Bin Mohammed Al Maktoum, Crown Prince of Dubai, the three-day Dubai World Hospitality Championship concluded on November 18, 2013 at the Dubai World Trade Centre.

Dubai SME joins hands with DWHC Dubai World Hospitality Championship (DWHC) announced the launch of a new incubation centre in association with Dubai SME, Dubai Municipality, Aswaaq and Union Cooperative Society for the winners of the innovative and homemade products category of the Emirati competition. The centre will offer great resources to its members including space, training tools, mentorship and other services. The initiative aims to drive continual participation and integration of Emirati nationals in the UAE hospitality sector. His Excellency Ahmed bin Hareb Al Falahi, President of DWHC, made the announcement in the presence of Ahmed Sharif, Vice President of Dubai World Hospitality Championship; Abdul Baset Al Janahi, Chief Executive Officer of The

Sheikh Mohammed Bin Rashid Establishment for Young Business Leaders (Dubai SME); Khalid Sharif Al Awadi, Director of Food Control Department, Dubai Municipality; Khalid Bin Gharib, Head of the Committee of Dubai Heritage and Touristic Section, Dubai Culture and Arts Authority; Affan Al Khouri, Executive Director, Retail sector, Aswaaq Company; and Suhail Al Bastaki, the Media and Communications Manager in Union Cooperative Society. His Excellency Al Falahi said: “A single event, regardless of its scope and reach, can only serve as a spark that lights the flame. What the flame needs to continue burning is constant and tireless effort. Towards this end, Za’abeel Palace Hospitality, in collaboration with key stakeholders, have come together to create this

incubation centre for existing and aspiring entrepreneurs in the hospitality sector. We are confident that our proactive initiative will serve as a catalyst to profile the UAE hospitality sector as an attractive career option to Emirati nationals.” Dubai SME will oversee the operations of the facility. In addition to securing tax-free business licences for a period of three years in accordance with the trade regulations, potential Emirati entrepreneurs will also be extended free membership to the Dubai Chamber of Commerce and Industry. Furthermore, Dubai SME will create an enabling environment to help members with all their hospitality-related ventures. Winners of the Dubai World Hospitality Championship will also be registered for professional certification.

Abdul Baset Al Janahi said: “The vision of Dubai SME is to make Dubai an ideal hub for entrepreneurs and the owners of small and medium enterprises, and through supporting entrepreneurship of new and emerging businesses to commence their development and expansion to become among the most competitive businesses in the future. “The hospitality sector, which is a vital one in the Emirate of Dubai, is experiencing rapid growth measuring up to 16.9 per cent per annum according to international reports, and Dubai SME takes great interest in such sectors that significantly contribute to Dubai’s economy. Dubai SME is keen on helping the owners of SMEs to grow and develop by providing all needs to hone skills, and overcome the obstacles in the process of their work.”

Business outlook for Q4 2013

His Excellency Hamad Buamim, President and CEO, Dubai Chamber

ubai Chamber’s Business Leaders’ Survey for Q4-2013 reported that 82 per cent of business leaders expect improvements in Dubai’s overall business conditions while only two per cent think otherwise. Furthermore, 16 per cent expect conditions to remain the same. It also highlighted a highly positive net expectation score of 82 per cent stating that the overall positive expectations are triggered by the general sentiment caused by the Expo 2020 bid which has received very strong support from the private sector and Dubai companies. Likewise, business confidence in Q4-2013 is set to improve with a net expectation score of 63 per cent; with 67 per cent expecting business confidence to improve while 29 per cent expressed expectations for just similar level of prevailing business confidence and four per cent expecting worsening. His Excellency Hamad Buamim, President and CEO, Dubai Chamber, said that the factors contributing to the outlook for general business confidence are mainly based on the expectations of the ongoing preparations for hosting Dubai

Expo 2020, greater domestic and global demands with the holiday season and influx of tourist arrivals when the weather becomes friendlier in the last quarter. He added that other factors for the outlook included economic stability, market maturity, improved liquidity, continued development of infrastructure as well as launch of new government initiatives. HE Buamim further added that improved investor confidence, which is the highest in the history of Dubai Chamber, comes from their trust in Dubai’s business environment – a result of the government’s long-term vision and the support it extends to major projects. He continued that the strong synergy enjoyed by the public and private sectors and their joint backing for the Expo 2020 bid have also positively impacted the business leaders’ expectations. These positive percentages reflect the high confidence in the business environment in Dubai, as large businesses are more optimistic for the quarter, rating a net expectation scores for business conditions at 82 per cent and for business confidence at 65 per cent; against the SMEs’ respective net expectation scores of 78 per cent and 61 per cent. The various factors expected to be most challenging in Q4-2013 were those directly affecting sales/revenues; with increasing competition being the most challenging; and those increasing costs, being most associated with the increasing rentals in Dubai. Among the financial factors, high cost of capital had been cited as most challenging. Finally, the business leaders called for government intervention in controlling overhead costs and lengthening of employment visa as they feel that a two-year visa is seen as a deterrent to investing in personnel development of employees and is a factor in raising the cost of hiring employees.

Innovative changes for overseas partners

Yousef Behzad, Executive Director of Human Capital & Marketing Division

At a ceremony held at the Burj Al Arab Hotel, DAFZA congratulated its overseas partners and introduced them to several innovative changes including its firstever mobile app, which provides users with access to more than 120 services including new business enquiries and client directories with details of over 1600 companies. DAFZA also highlighted a change in the legal business structure, which will open many more opportunities for foreign investors, especially small and medium sized enterprises, to set up in the free zone. More facilities for DAFZA’s turnkey business solutions were also announced, to help overseas companies establish a base in Dubai and expand into the Middle East and beyond. Yousef Behzad, Executive Director of Human Capital & Marketing Division, said: “We have an exceptional relationship with our international consultants who expertly share the advantages of operating from DAFZA with potential clients from their own nations across the world. They have a great ability to convey the benefits of business to a global audience and this event is the perfect opportunity to meet with them once again and to thank them for their contribution in bringing so many prestigious investors to our free zone to contribute to the Dubai economy and help their companies to expand into new markets.” “It is also a time for our consultants to bring forward their own suggestions so that we can work even more closely together in the future. This evening is a celebration of a very cooperative and extremely successful working relationship,” Behzad added.

November 2013

FINANCE FOCUS

Eureeca attracts Jordanian businesses

Biotech startups opt for corporate venture capital

ew research by leading academics revealed that biotech startups are increasingly turning to corporate venture capital divisions for support. The research, by Gary Dushnitsky, Associate Professor of Strategy and Entrepreneurship, London Business School and his co-author Dr. Alvarez-Garrido, was featured in the British Venture Capital Association’s report The Missing Piece and revealed that corporate venture capital was the driving force behind cutting edge medical innovation. Dr. Dushnitsky, also Academic Director at Deloitte Institute for Innovation and Entrepreneurship, explained: “Biotech startups are increasingly turning to corporate venture capital arms, which are steadily on the rise, while traditional venture capital funds are partially drying out. In a recent Nature Biotechnology study (Publications and patents in corporate venture– backed biotech), my co-author and I find that the shift in funding patterns is resulting in an increase in scientific publications as well as patenting output. “Put differently, the shifting landscape of entrepreneurial finance, not only finds a role for corporate venture capital,

but also stimulates cutting edge medical developments originating from corporate backed startups.” Dr. Dushnitsky adds: “Corporate venture backed startups are more likely to generate innovation than startups backed up by private venture capital.” Using a dataset of 572 biotech startups over the period between 1990 and 2011, the authors found that corporate venture backed startups are more likely than privately backed startups to generate innovation, as measured by patenting activity among other indicators. Despite the positive correlation between corporate venture capital backing and increased innovation, the corporate venture capital trend is still met with a mixture of enthusiasm and scepticism. Corporate backed startups don’t currently have the same access to innovation funding as traditional venture capital backed startups. But, according to Dr. Dushnitsky’s findings, opening up funding to corporate backed startups looks like a good investment. The study identifies the implications of the findings for policy makers, biotech entrepreneurs, and large firms that operate corporate venture capital activity.

Abjjad, Foodlve and Harir are the first three Jordanian businesses to launch their funding proposals on eureeca.com, a crowdinvesting platform offering a global solution for businesses to raise finance from the crowd in exchange for equity. Chris Thomas, CEO and Co-Founder, Eureeca, commented: “We are incredibly excited to be welcoming three very strong Jordanian businesses to launch their funding campaigns on eureeca.com. Being an early stage business ourselves, we are very passionate about nurturing growth and supporting innovation, and so are very much looking forward to supporting Abjjad.com, Foodlve.com and Harir.com as our first international transaction businesses.” Supported by Oasis 500, Abjjad.com is a social network for readers, writers, and bloggers. Users can create reading lists, add book reviews and share their written content as well as providing a directory for all books suppliers in the Arabic region. Also supported by Oasis 500 as well as Leap Ventures, Foodlve.com is a social discovery platform for food lovers. Users can discover, collect, share, blog and post all they love about food through the platform. Meanwhile, Harir.com is an online shopping club in the Middle East for top design and lifestyle brands which offers its members exclusive access to discounts up to 85 per cent. Oasis500 Investment Manager, Salwa Katkhuda said: “Crowdinvesting is a disruptive, innovative and empowering way to raise money – the fact that two of our early stage businesses are choosing this type of fundraising truly showcases the calibre of early stage businesses in Jordan. There is no secret that Jordan has become an entrepreneurship hub and we are very proud to support Foodlve and Abjjad during their campaigns on eureeca.com.” Chris Thomas continued: “With such a diverse population and innovative spirit, Jordan is a core market for our business. Organisations like Oasis 500 continue to contribute and nurture the development of Jordanian entrepreneurship.”

The International Business Network

he recent launch of the International Business Network (IBN) has proved to be a

great initiative for promoting Dubai’s investment environment in light of the increasing interest of

international companies to set up base in Dubai. The International Business Network is an ideal platform for global companies to obtain information about the business environment in Dubai. It also provides access to wide range of benefits, a currently available to Dubai Chamber’s members, such as economic studies, research and business set up advice. The online network is a part of Dubai Chamber’s strategy to expand its foreign trade and to enhance the competitiveness of Dubai’s business environment while providing the online business community with all the

CIMA highlights big data trends An international survey of 2000 CGMA (Chartered Global Management Accountant) finance professionals, organised by Chartered Institute of Management Accountants (CIMA) and American Institute of CPAs (AICPA), shed light on the latest big data trends within organisations. The survey revealed that 86 per cent of organisations were struggling to convert increasing volumes of data into valuable insights. It further reported that 34 per cent of respondents felt that the incorrect analysis of organisational data had a significant impact on revenue. In addition, 44 per cent of respondents stated that their organisation wasn’t equipped with sufficient technology to understand the new trends impacting their business and only 53 per cent were investing in the capabilities to harness the benefits. The top three reasons behind the lack of new or improved practices within the organisations were costs, poor understanding of the value of the outcomes and time constraints. These findings were in stark contrast to the estimated impact of big data

in the future, with 87 per cent of respondents saying big data and better analytics will change the way business is done over the next 10 years and those who do not harness the concept will find themselves at a competitive disadvantage (86 per cent) by the end of the decade. Respondents added that the main barriers their organisation face when attempting to extract valuable insight from data were: • Difficulties in bringing data together from different databases and silos (62 per cent) • Ensuring the business captures reliable, good quality data in the first place (51 per cent) • Extracting insight from non-financial data (46 per cent) • Ensuring insight gained from data is used to improve performance (43 per cent) • Identifying meaningful trends and insights in a mass of data (39 per cent) • Intelligent visualisation and reporting of data (34 per cent)

benefits that would help their easy entry into the Dubai market. His Excellency Hamad Buamim, President and CEO, Dubai Chamber, informed that the new smartphone services launched by the Chamber will help increase the number of online members while promoting the emirate as a major destination for business and finance. He further stressed that the development of e-services and updates on the Chamber’s website will help customers from all over the world to access all the information they need about doing business in Dubai. For more details on this initiative, please visit: www.dubaichamber.com.

RETURN ON INVESTMENT When asked who is responsible for ensuring their organisation gains a return on investment in data management technologies, respondents said:

61%

28% 18%

CFO

CIO

COO

MARKETING HR DIRECTOR DIRECTOR

13%

OTHER

Geetu Ahuja – Head of GCC, CIMA said: “Big data is increasingly becoming a core business asset. According to the survey, 93 per cent of respondents agreed that finance has an essential role to play in helping organisations benefit from datarelated projects. Finance professionals, especially CGMAs, are well placed to do this by helping organisations translate analytical insights into commercial insights to create value.”

November 2013

FINANCE FOCUS

New money sharing facility

ransCash Corporation, a financial services company based in California, USA, launched a new initiative – the TransCash MasterCard® Prepaid Money Sharing Cards, a unique financial product which facilitates money sharing from card to card, in the UAE. The TransCash MasterCard® Prepaid Money Sharing Cards are sold prepackaged in sets of two. Both cards have a separate account but they are linked to facilitate money sharing from card to card. The primary card holder keeps the ‘green card’ and gives the ‘red card’ to his or her immediate family member (spouse, parent or child) who can be located in the UAE or overseas. The cardholder with the green card can load funds into the green card and then move funds to the red card. This can be done online, over the phone or at a TransCash kiosk. The funds on the red card are immediately available. That’s not all. This service is included for an attractive flat monthly fee (Terms and Conditions apply) set at AED 15 during the initial phase. Cardholders can also use their account to:

• Shop in store and online. Apart from online, both cards can also be used at over 35.9 million merchant locations and 2.1 million ATMs which accept MasterCard prepaid cards worldwide. • Pay bills online, over the phone or in person. • Withdraw cash at 2.1 million MasterCard ATMs worldwide. • Load their green cards in the TransCash kiosks, at retailer’s shops and in more than 450 Maxbox Cash deposit machines across the UAE. In the UAE, TransCash MasterCard® Prepaid Money Sharing Cards are issued by Finance House PJSC and processed by Network International under a licence by MasterCard International Incorporated. Headquartered in Abu Dhabi, with branches covering

Dubai and Sharjah, Finance House PJSC, ensures the BIN sponsorship for TransCash by issuing the TransCash cards for the region. The TransCash product is already available in TransCash corporate kiosks located in three malls. It will soon be available in supermarkets and ZOOM convenience stores (located in EPPCO petrol stations and Dubai metro stations) for an attractive price of AED 45 during the initial phase. A list of kiosks is available online at www.TransCash.com. The TransCash MasterCard® Prepaid Money Sharing Cards with advanced EMV Chip are safe, secure and convenient. Funds are protected. Most importantly, the TransCash Cards can help minimise expenses, and help simplify the current system, by providing a safe and reliable system.

Fresh insights on Crowdfunding Crowdfunding has emerged as a popular funding option for several entrepreneurs and startups around the region. However, an enterprise expert from London Business School – Dr. John Mullins, Associate Professor of Management Practice in Entrepreneurship – posed an interesting caveat. He recently explained: “While there have been some notable crowd-funded success – and even an Academy Award-winning movie – I worry about several issues.”

The first issue he highlighted was ‘A dismal record in investment’. He said: “Much of the venture capital industry has a poor record at picking companies to invest in, not to mention often delivering negative returns to their investors. It’s unlikely that Aunt Millie will do any better, and she may not be very happy when she soon discovers that the crowd-funded investments she’s made have all turned to dust. A backlash is likely.” Continuing with his second issue, ‘Large effort

for a meagre return’, he added: “The emerging early data on crowdfunding suggests that the average amounts raised are in the neighbourhood of £1,000 (AED 5,900). Doing a successful crowdfunding campaign involves lots of work: perhaps creating a compelling video, building a prototype, and even bringing your own network, as well. Is it worth all that effort for such meagre returns? Might that effort be better spent on finding some real customers and convincing them to buy?”

Finally, Dr. Mullins shed light on his third issue, ‘Lack of support’, and said: “Financing a new business, difficult as that is, is perhaps surprisingly the easy part of getting a new business underway. Actually running the business – having the right products, targeting the right customers and so on – and making it viable, is much more difficult. Crowdfunding does not offer any help in that regard.” “In short, crowdfunding is an interesting new phenomenon and just how much it will mean to entrepreneurs remains to be seen,” he concluded.

When power is critical to your business, make sure it’s reliable.

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Why Schneider Electric is the right power protection choice. You may know us as the market leader in delivering IT power protection. But we also offer a full range of reliable and highly efficient power protection solutions designed to safeguard business-critical applications and environments outside the IT room. Our innovative, best-of-breed products, services, and solutions provide the secure and available power you need to keep your systems up and running, while increasing efficiency, performance, and safety. Guaranteed availability for business-critical systems. No matter what industry you’re in, our unrivaled portfolio offers a solution that’s guaranteed to suit your specific business needs and keep your power on. Thanks to Schneider Electric™ power and energy management capabilities, in-house expertise, broad investments in R&D, and global presence, you have a trusted resource for reliable power, anywhere in the world.

Secure power solutions that deliver the performance you need. Products: Our complete catalog of power solutions, featuring our leading brands such as APC™ by Schneider Electric and GUTOR™, offers an unmatched range of single- and three-phase UPS units, rectifiers, inverter systems, active filters, and static transfer switches from 1 kVA to several MVAs. Services: Schneider Electric Critical Power & Cooling

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November 2013

SME ABOUT TOWN

SAP’s gender diversity workshop

t a luncheon series, organised by SAP MENA, Raja Easa Saleh Al Gurg, President of Dubai Business Women Council (DBWC) and MD of Easa Saleh Al Gurg Group, offered detailed insights on how women have contributed towards the economic growth of the UAE and the region and are continuing to do so. She highlighted the significant role that Dubai Business Women Council plays in supporting business women in Dubai by providing networking platforms and monthly

During the workshop

training workshops to its members. Meanwhile, Elsa Babik, Founder & Managing Director of Promomz* and member of the DBWC, shared how Promomz* initially supported by DBWC, launched a unique online and mobile business application to encourage professional mothers in finding the right work-life

balance to increase their contribution to their family and society. Raja Al Gurg said: “Given appropriate opportunity, women are capable of being as successful in business as men. We are fortunate to have visionary leaders in our country who have always emphasised on the role of women in growth and development of

the country and its economy and have encouraged them to reshape their traditional roles. Therefore, it is not surprising to see a large number of women in the UAE, both nationals and expatriates, in leading roles in virtually every business.” Nelly Boustany, Head of HR, SAP MENA, said: “Women are at the forefront of SAP’s diversity agenda and critical to SAP’s success is women in management roles. SAP is all about identifying and nurturing the world’s best talent, and we can only do that in a truly effective manner if we are an equal opportunities employer. I am delighted with the response we have had to our month of celebrating and highlighting the importance of women in the workplace, and thankful for the support and insight offered by organisations like DBWC.”

The importance of personal branding Strathclyde Business School UAE held a workshop – Branding Yourself in the Social Media Age – on October 28, 2013 at the Crowne Plaza Hotel, Dubai. Organised in partnership with its Dubai Alumni Chapter, the event featured four expert speakers including Dr. Ron Bradfield, Director of Strathclyde UAE and Associate Dean of the Business School; Hisham Wyne, Blogger, Columnist & MC; Marissa Woods, Founder of ImageFactor UAE; and Alexander McNabb, Novelist and Director of SpotOn PR. Dr. Ron Bradfield framed the debate by questioning the universal and long-term importance of social media for the modern professional. This was followed by Hisham Wyne’s entertaining and persuasive talk about the importance of individuals to take control of their digital life. Furthermore, Strathclyde graduate and executive stylist, coach, and branding specialist Marissa Woods

agreed with many of these sentiments. “In business, perception is reality,” Marissa said, “and our personal brand is reflected online and in person via our behavior, appearance, values, technologies and more. As professionals, our personal brand is judged by others in a roughly 30-second first impression which, if negative, can take 21 subsequent positive interactions to change.” With this in mind, Marissa advised attendees to think about the various kinds of

impressions they were making as professionals with their social media presence, and to ensure that the message reaching their professional networks is accurate, consistent and authentic. Finally, Alexander McNabb presented a compelling perspective on personal branding, arguing that that social media is here to stay, but that the practice of branding, and personal branding in particular, is too often contrived and disingenuous as it is used to manipulate or falsely inflate public perception. The wide range of perspectives helped attendees to clarify their own positions towards social media, and meaningfully consider whether their own social media presences were strong enough to convey their personal brands or professional selves positively, honestly and effectively in an ever-changing but increasingly online world.

John Mattone’s Dubai workshop

John Mattone

Leading marketing guru in Dubai Top marketing strategist Jack Trout led a full day workshop in Dubai where he highlighted two core concepts – ‘Positioning has gone global’ and ‘Marketing warfare’. The session was organised by TECOM’s Media Cluster – Dubai Media City, Dubai Studio City and International Media Production Zone – in collaboration with Brand Lounge, branding and marketing strategists and MENA partner of Trout & Partners. Jack Trout said: “Dubai is a vibrant destination

ohn Mattone, one of the most influential leadership and talent management authorities in the world, will make his first ever public appearance in the UAE. He has been recognised by the prestigious Thinkers50 and by Leadership Excellence Magazine as one of the world’s top independent leadership consultants, executive coaches, and speakers. Mattone will be speaking an upcoming full day workshop, Talent Leadership: A Proven Method for Developing Leaders and Future Leaders, to be held at JW Marriott Marquis Dubai on November 20, 2013. The workshop, based on the best-seller book Talent Leadership: A proven method for identifying and developing high-potential employees (AMACOM, 2012), will address the principles behind

with a thriving media sector. TECOM’s Media Cluster plays host to some of the world’s leading media, marketing and advertising companies, and it is an honour to have been given the opportunity to address such an esteemed group of industry leaders. Dubai’s media community has grown hugely in the past decade, and I am confident that it will continue to thrive in the coming years and that Dubai will continue to grow as a leading knowledge-based economy.” Mohammad Abdullah, Managing Director of TECOM’s Media Cluster, said: “We are delighted to welcome Jack Trout to Dubai and to be able to host this event. Jack’s standing at a global level in the field of marketing strategy and the

talent leadership and share case studies and tools on how organisations can empower their managers with processes and strategies for successful succession planning. General Manager at JW Marriott Marquis Hotel Dubai commented: “We are delighted to host one of the world’s top thinkers in the field of talent acquisition and management. Our founding father Bill Marriott was renowned for saying that if you ‘look after the associates and they will look after the guests’. We strongly believe that developing talent not only helps to grow the business, but also cultivates an atmosphere of integrity and pride in the workplace. This seminar will be of interest to the JW Marriott Marquis Dubai as we are a rapidly growing and diverse team and a number of our Managers and Directors will be in attendance.” The event is organised by Innoverto, a UAE-based training and corporate events management company. For more information, please visit www.innoverto.com/johnmattone.

Jack Trout

insights that he can offer will be of invaluable use to our business partners across all of the TECOM industry clusters. “We are committed to supporting the development of the media sector and the growth of our business partners and community.

This event was an ideal opportunity for industry leaders to gain a further insight into the marketing and media industries, as well the perfect opportunity to network with top-level decision makers and leading companies from within the Media Cluster.”

November 2013

SME ABOUT TOWN

Understanding Intellectual Property Rights

he First Intellectual Property Forum in the UAE and the region is all set to take place in Dubai from December 11 to 12, 2013 at the Jumeirah Beach Hotel. The event will shed light on protection of intellectual property (IP) of trademarks and related issues. The two-day event will attract top dignitaries, representatives of governmental departments, industry leaders and experts in the field of IP. The Forum, organised by the Brand Owners’ Protection Group “BPG”, in strategic partnership with Dubai Economic Council (DEC), aims to provide an interactive platform for its attendees and to drive strategic dialogues on the pressing issues surrounding intellectual property rights (IPRs). Furthermore, the event seeks to raise awareness within the business community and among stakeholders on the best global practices in the field of IPRs protection, particularly the protection of trademarks and the application of the laws that control illegal trade of all forms.

Alongside its partners and participants, the Forum also intends to ensure transparency in domestic and international trade; enhance the working environment in the GCC; establish an Excellence Centre to provide advice and lobby for the regulation and protection of intellectual property and adopt intellectual property-related legislations in the countries of the GCC to promote the principle of sovereignty of law. Various themes will be highlighted during the Forum which include: identifying the latest developments in the field of IP in the GCC, including government policies and initiatives in this area; overviewing the prominent

cases of violation of IPRs in the world and providing solutions to address violations in the area of IPRs; highlighting the importance of consumer protection and methods to prevent customers from being exposed to goods; highlighting the importance of creativity and innovation based on research and development; identifying the best international practices in the field of protection of IPRs (Switzerland, Japan, and France); raising awareness on the future of IP among all sectors on the regional and international level and highlighting the importance of public-private partnership on the consolidation of practices relating to the protection of intellectual property.

‘Mobile Money’ trends At its Mobile Money Global event held in Dubai recently, Ericsson discussed the rapid change in regional consumer behaviour around the use of mobile money. Ericsson highlighted how the shift from traditional banking models has created opportunities for new consumer experiences, including m-commerce solutions like mobile wallets. With the increased of mobile devices for secured financial transactions on-the-go, Ericsson has developed

solutions for new customer behaviour that have been adapted from the regional modes of doing business. ”The mobile commerce industry in the Middle East is evolving due to increased merchant acceptance and the demand from consumers for simpler and more available m-commerce solutions. Ericsson has developed leading solutions to support mobile network operators and financial service providers to further accelerate their launch of mobile financial services

Rajiv Bhatia, Head of EMEA Mobile Commerce Sales at Ericsson

and multi-channel digital payments in line with this new shift in behaviour,” said

Rajiv Bhatia, Head of EMEA Mobile Commerce Sales at Ericsson.

Dubai SME 100 rankings revealed!

During the Dubai SME 100 event

n the annual ranking of the emirate’s 100 top performing smaller businesses, launched by the Mohammed Bin Rashid Establishment for SME Development (Dubai SME), Just Falafel was ranked as first for 2013, reflecting the company’s development Fadi Malas, CEO, Just Falafel since its previous position at #49 in 2012. “This recognition, from Dubai’s own growth engine for SMEs inspires the entire Just Falafel team to continue setting a dynamic example for other emerging businesses from the Middle East,” said Fadi Malas, Just Falafel’s CEO.

Setting up a joint venture Dubai Chamber of Commerce and Industry’s Legal Services Department organised an informative session Joint Ventures: All you need to protect your interests - which addressed fundamental aspects of setting up a joint venture. The workshop, held in association with Hadef & Partners, was led by Barton Hoggard, Partner, and Rajiv Nawbatt, Associate, Hadef & Partners. They assessed the options for setting up joint ventures in the UAE, discussed the purpose of certain ancillary documents and examined the main provisions and protections in joint venture agreements.

Jehad Kazim, Director, Legal Services, Dubai Chamber, stated that entering into a joint venture is a significant undertaking which, if not correctly structured, can expose an investor to significant risk. With proper professional advice, investors can minimise such risks and safeguard their investment, she said. Kazim further added that Dubai Chamber’s aim behind organising such training workshops is to educate entrepreneurs with the legal

fundamentals of doing business while helping them start with a clear mind about the requirements of their business and how to build it on a strong legal foundation. Dubai Chamber regularly organises trainings, seminars and workshops to apprise the business community with the various trade legislations, laws and rights as part of its efforts to serve the business community which ultimately go on to boost their trade and contribute to the economic growth of Dubai.

November 2013

Banking for business

Can you

handle it? Strategies to maximise your business capital

It’s a reality that the vast majority of SMEs won’t be in a position to afford an experienced Chief Financial Officer – which means that hard-won sums of money may not be used to leverage profitable change and expansion in the way they should. So how is a fast-growth business going to make the best use of its capital and ensure that sums are rigorously protected? Or ensure that the right financial strategies are in place? SME Advisor reveals the blueprint that can supercharge your business and boost capital value…

t’s a simple equation. Capital in the world. He comments that: “by is the most vital part of your their nature, most SMEs won’t have business. Without capital, your advanced financial decision-making business probably has less skills at their disposal, since in most than three months to survive. cases, the founder or Managing Director Indeed, depending on your sector and won’t have had experience of complex payment cycles, it may well cease to exist financial initiatives, and there will be before your next working capital cycle little first-hand knowledge of how to look comes to an end. By contrast, with a good beyond the short term debt obligations supply of capital, you’ll be well-placed and payroll requirements. An experienced to expand the business, build profile in ‘head for money’ would be able to sustain key markets, acquire tradeable assets, investment initiatives as well as get access undertake good R&D, attract top quality to fresh finance, and maximise cashflow staff and set Best Practice standards that at the same time as cutting costs. But for supercharge the business across each and most small businesses, it’s often more a every operational sphere. This stark scenario doesn’t simply apply to the sums your business is already generating: it’s equally relevant Without capital, your to borrowed capital, too. For example, you may have secured the funding you business probably wanted (either from a risk partner or an has less than three investor), but do you know how to use months to survive. it to full advantage and make all those glowing plans on your finance application a powerful reality? Or will that precious sum be frittered away with false ventures question of firefighting immediate needs and lack of a crisp and proper blueprint? and covering the outgoings.” One of the most widely-recognised Conflicting priorities blueprints for capital management is One of the challenges inherent in called ‘The Capital Agenda’ - it’s the effectively managing capital is that there working template created by Ernst & isn’t just one strategy you need to follow: Young and used by more than 90,000 there are actually three or four, which will businesses globally. This specifies that need to be actioned simultaneously - with there are actually four key factors in each strategy given a different weighting effective capital management, namely – depending on the level of development • Preserving capital your SME has reached, or what your • Optimising capital objectives are at any given time. SME • Raising capital Advisor spoke to Colin Rochas, Head of • Investing capital Financial Planning at the UK’s Federation of Small Businesses - with 220,000 active Together, these elements create a members, the largest SME organisation holistic approach designed to ensure

that a company won’t be ‘blindsided’ by unexpected capital requirements - and also has a raft of tools at its disposal for each critical stage of the business’ growth and the capital strategies that they might entail. Putting your own ‘Capital Agenda’ into practice SME Advisor spoke to Abu Dhabi Commercial Bank (ADCB) about the practical steps that each element of ‘The Capital Agenda’ will entail. Preserving capital What are the strengths and weaknesses in your balance sheet? You’ll have to monitor these regularly and build up a very clear picture of where there are consistent capital shortfalls. Similarly, regularly evaluate market opportunities (a weekly meeting with the marketing team is a vital first step here). Throughout the lifespan of your business, you will need to be able to have a good level of liquidity, control costs and release cash both for standing costs and fresh ventures. You won’t be able to do any of these things without the right controls in place for preserving capital. So the key priorities will include • Cashflow planning. Sound cashflow planning is critical to business survival. The rigorous and regular assessment of impending cash needs is the most effective way to predict imminent risks. • Debt management. How effective is your business in collecting sums owed? (Remember, up to 40 per cent of total value can be tied up in receivables at any time). How effective are you in maximising your company’s own payment terms? Comprehensively review all debt arrangements and investigate if there is scope for more

November 2013

Banking for business

favourable debt conditions and renegotiating agreements. Consider the role of Trade Credit Insurance in guaranteeing percentages of cashflow. • Cut costs. All the measures above are pointless if costs are not reviewed regularly and any extravagances eradicated from the system. For example, are lights and AC left on overnight? Do you review sales team expense allowances? Is your fleet provider giving you the best terms on rented/ leased vehicles? Is your marketing activity overly dependent on hard copy literature, with not enough emphasis on online promotions and social media? Optimising capital How is your business allocating capital? Remember, capital is the most valuable thing you have and it should be optimized by placing it where you will get maximum return. Efficient capital allocation is king. One of the key factors here is ensuring good operational efficiency - a powerful catalyst for releasing more capital and ensuring there are no ‘dead’ areas in your business where capital will be lost. • A ‘cash first’ mentality. You may be profitable today, but that in itself doesn’t guarantee sustainability tomorrow. Do you have solid, proven conduits for sustaining cashflow - and will Q1 investments in uncertain risk strategies imperil the activities you will need to undertake in Q2? • Active portfolio management. Your business may not yet be of a scale to have an investment portfolio - but perhaps it will in the near future, or maybe you have fuelled start-up and growth from your own investment tranche? Always review portfolio performance on a fortnightly basis - and never, ever assume that sums will continue on a relatively even keel. • Act early. Your business is likely to witness key opportunities on the horizon and competitive advantage may depend on seizing these before your competitors. Involve proven, key managers in the identification, due diligence and delivery process. Raising capital Too many companies make the shorttermist mistake of assuming a ‘once and done’ approach to raising capital.

There may be a variety of financial Investing capital necessities as the business grows and Many businesses that are aiming for evolves, and a second (or third) round of fast growth neglect to build a strong finance might be an important way to fuel investment portfolio, and fail to plan the vigorous expansion strategies that now contingency strategies across a number beckon. It pays to plan ahead and assess of varied scenarios that their growth might what will be most appropriate for your involve. Again, all too many businesses needs, and when. Even if your strategic make the mistake that investment is a plan shows there is no need for further ‘once and done’ activity - but nothing could borrowing, remember that you never be further from the truth. Investment know what external or market shocks requires consistent vigilance and the may come along and rock your business. following factors are key – It’s also a good idea to see your business • Agility. Rigorous due diligence is a core from the viewpoint of the lending/ part of effective investing, and so is the recognition that you might have to do investment community. Addressing any weaknesses now will prevent unwelcome this across a variety of different scenarios. This might be labour intensive, but that’s surprises and setbacks at the application stage. So – the nature of committing to a successful • Be prepared. It’s not simply a case of investment strategy. whether or not you can get finance, it’s • More is not better. One successful a question of the rates you can get it at. investment channel does not in itself merit piling all your eggs into one basket - diversification is key to ensuring a balanced portfolio and What are the strengths therefore underpinning business stability. and weaknesses in • Think ‘out of the box’. In addition to your balance sheet? usual investment activities, a sensible You’ll have to monitor and practical avenue for investing and growing capital can be to initiate these regularly and a strong joint venture or partnership. build up a very clear This can bring many of the rewards of picture of where there an acquisition or merger but without are consistent capital the harsh financial exposures and costly re-alignment of the business. shortfalls.

The earlier you can identify future needs, the earlier you can begin to shop around and build a valued shortlist of potential funders. • There’s more to raising finance than debt and equity. Think about ways you could restructure the business to create interesting and appealing investment opportunities - an innovative proposal can go a long way to attracting a compatible investment partner. • Think ‘targeted market’. If your business is planning expansion into a strong overseas market, then you should consider applying there for potential funding - at least to supplement primary local funding. This will also be seen as a plus factor for the primary risk partner/investor, since you are in effect spreading the enterprise risk.

Success and failure: a fine line Surveys of the kind run, for example, by Dubai SME show that there is a very fine line between success and failure, and that effective management of capital is one of the key catalysts for taking the business out of the relatively dangerous waters of the first two years and into the growth stages characterized by successful applications for fresh financing. This is especially the case when a business is looking not simply to survive, but aspiring to the role of market leader. Has your business got the right raft of capital management strategies in place to shine brighter than the competition and ensure it has the liquidity and means to seize opportunities as and when they best arise? For an online version, please visit: www.smeadvisor.com/2013/11/can-youhandle-it/

November 2013

MOVERS AND SHAKERS

His Excellency Ahmed bin Hareb Al Falahi

Something cookin’ –

SMEs on the menu

The Dubai World Hospitality Championship 2013 was much, much more than simply a worldclass festival of Emirati cuisine. It was a powerful catalyst to encourage expert cooks to play a key role in the local business sector, stepping out of the kitchen at home and giving free rein to entrepreneurial spirits. Not to mention giving a dramatic new selling point to the hospitality industry and kick-starting a fresh awareness and appetite for the region’s unique and varied cuisine. SME Advisor spoke to the President of the Dubai World Hospitality Championship, His Excellency Ahmed bin Hareb Al Falahi…

uite simply, there’s never been a culinary event like it in the region. The Dubai World Hospitality Championship 2013 (DWHC) comprised three main competitions: The International Competition, The Emirati Competition and The Hospitality Sector Competition. The championship warmly welcomed 12 globally renowned culinary masters, Emirati professional and amateur chefs and 700 chefs vying for top honours - all showcasing their creativity, mastery and professionalism in crafting international and Emirati cuisine. What’s more, DWHC was the first and only event of its kind highlighting the rich and intricate traditions of Emirati cuisine and hospitality to the world. Indeed, this amalgam of cultural and commercial themes was a keynote thread throughout an event organised by Zaabeel Palace Hospitality under the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai. Supported by the World Association of Chefs Societies (WACS), the Emirates Culinary Guild (ECG) and Dubai World Trade Centre, the debut edition of the championship hosted a culinary museum and a model heritage village displaying traditional handmade products and offering popular Emirati food for sampling. Plus, there was one more attraction - entry was completely free of charge! Going professional – SMEs in the making The Emirati Competition was designed to be a major catalyst for aspirational local chefs - whether housewives, professionals, or newcomers to cooking - to see the provision of high quality Emirati cuisine as a key area of business development. Indeed, this hotly-contested segment included no less than four competitions: The Professional, Amateur, Homemade & Innovative Products contests. With the UAE emerging as a prime hospitality destination at an international level, the Emirati competition was a colourful, vibrant and effective first step in encouraging UAE nationals to join the world hospitality stage, and offer gourmets the world over a taste of the vivid flavours of Emirati cuisine.

Keynote voices Ahmed Sherif, Vice President of Dubai World Hospitality Championship, said: “We have put together the Emirati competition to present and showcase all elements of the UAE’s traditional cuisine and products. Emirati youngsters should be more familiar with their heritage and culture and through this championship; we hope to encourage the younger generation to enter the hospitality sector. This will ensure the preservation and modernization of Emirati cuisine as well as home made products.”

The Emirati Competition was designed to be a major catalyst for aspirational local chefs - whether housewives, professionals, or newcomers to cooking - to see the provision of high quality Emirati cuisine as a key area of business development. Sameera Al Ameri, Local Competition Co-Ordinator, Abu Dhabi General Women’s Union, also commented: “At the General Women’s Union, we are committed to promoting Emirati heritage and cuisine and plan to support DWHC in a big way through motivating Emirati participants to register through our association. The Emirati competition is all about showcasing our heritage on a global stage, and this has always been one of our strategic goals at the GWU. It is important for young UAE nationals to play an active role in promoting Emirati cuisine to enable it to assume its rightful place as an international cuisine of choice on the world’s platter. Their time is now.” Putting traditional values in the spotlight SME Advisor was delighted to speak to His

Excellency Ahmed bin Hareb Al Falahi, President of the Dubai World Hospitality Championship. He explained the purpose and long-term focus of the event: “The purpose of participation of local women and students is to get them out of their homes to the Dubai World Trade Centre so the general public can see our native produce. In choosing the participants, it was important to create a profile of how much they have a knowledge of our traditional cuisine. “It’s all about passing on our old family ways to the new generation. In their homes there is not much for women to do, so we want to help them begin in business. Of course, for them to participate we need some guarantees - of hygiene, for example, quality and the ability to deliver the quantity of food required. Is someone can only produce ten bottles of sauce, for instance, then that’s useless. “We want people who are really committed because we are ready to give support to locals to start new businesses in the food sector. The quality has to be up to European standards. When people move on to food as a business then, of course, the Municipalities will put in place rules and regulations to guarantee HACCP compliance. To date, we have held workshops and given lectures on food hygiene and good practice but as we move forward it will all go step by step. One difference between our food and that of France or Italy, to take two examples, is that we cook at very high temperatures so the cooked food doesn’t spoil in the same way. Yet it’s clear that the rules of basic hygiene must be there. How we guarantee that later will be through HACCP compliance. “Our support is extensive. One participant came to me and said she wanted to produce the logo of Expo 2020 in food but couldn’t afford the cost of the ingredients which would have been around Dhs 15,000. We gave her instant support with Dhs 50,000. We are covering all the costs of participation for women cooks coming to Dubai from across the Emirates – transport, hotel accommodation, ingredients and plating. “For Emirati food to be commercial, it must have the right taste. In future, I think we will not again use the Dubai World Trade Centre. This event

November 2013

MOVERS AND SHAKERS

needs to take place in the open. We’ve had to provide home style kitchens in the Trade Centre, to duplicate how local cooking uses different procedures and ways of preparing. “To have Emirati food to become commercial, we need to recognise that our kitchens in houses are hidden from the world. Therefore there’s a need to get the women out to locations where we can ensure the right equipment, the right hygiene procedures and so on. “There’s a great importance in how food is presented old-style. This may be easy for mothers but it’s hard for the next generation. “Is our food healthy? Yes! As a child, we only ever ate meat on a Friday – every other day was fish. Now, yes we see many Emiratis suffering from food related illnesses but the truth is that of you eat too much meat and fat every day then that diet is not good for you. The old ways were healthier. “I think what is important for us to tackle is the issue of a lack of Emirati food for visitors and expats. Where is our own cuisine offered to guests? I believe all hotels should be offering our local food – every restaurant have at least one or even up to four Emirati dishes on offer. Well, perhaps not every one

but the food should be easily accessible. But hotels must have our food. They will need special kitchens to produce it but I believe it will become big business and they need to invest – they have done well out of this country. Will it be difficult for them? Well, you have to spend to get more. It’s their problem and they need to realise that the increasing number of visitors from across the GCC want their own food, so hotels should be reacting to this without being told to do so. They have to give something back to Dubai and the UAE. “Will the availability of local food increase tourism? Of course, though at first the impact will be from the GCC. Currently, to eat their own food they have to bring it with them and cook it on a small burner in their room. We all do this, even when we go to Europe we take rice and dried fish… Everybody loves to try local food. When we go to India, for example, we have to try the food. It’s part of the culture and the difference from our own is good. “Hotels need to understand our culture, using the knowledge of how our fathers treated us. I get no real sense of hospitality in our hotels yet when I invite someone to my home, I am generous and welcoming. Hospitality is deeply embedded in our culture yet it seems that many hotels don’t care. We have rules about restaurants so maybe we should also have rules about hospitality. We need to see a warm welcome – an Emirati experience. “One very important thing about the Dubai World Hospitality Championship is that it’s about the country as a whole. There are seven Emirates but we are one and all are equal in the competition. “Do I cook? Yes! My whole family loves to cook, but my wife prefers to cook mainly European dishes. When it’s local food, I am the cook. My son is the same and, like me, has cooked from an early age. My daughter likes to as well, but asks me to teach her. Favourite local foods for me? “I am proud to say that my family began the whole Emirati restaurant scene. I grew up in Shindaga – we have old roots in that area – and in 1983 we opened a dhow restaurant opposite the British Embassy. All the cooks were ones that my mother had taught herself in our kitchen. Later we moved the dhow to Al Boom Tourist Village but still the cooks that spread across the Emirates cooking local food were ones that had learned how to cook from my mother. Later, I was in charge of hospitality at Dubai

World Trade Centre for three years and, when the IMF meeting came to Dubai, it was the first time that real Emirati food had been served at DWTC. “A single event, regardless of its scope and reach, can only serve as a spark that lights the flame. What the flame needs to continue burning is constant and tireless effort. Towards this end, Za’abeel Palace Hospitality in collaboration with key stakeholders have come together to create this incubation centre for existing and aspiring entrepreneurs in the hospitality sector. We are confident that our proactive initiative will serve as a catalyst to profile the UAE hospitality sector as an attractive career option to Emirati nationals. “Dubai SME will oversee the operations of the facility. In addition to securing tax-free business licences for a period of three years in accordance with the trade regulations, potential Emirati entrepreneurs will also be extended free membership to the Dubai Chamber of Commerce and Industry. Furthermore, Dubai SME will create an enabling environment to help members with all their hospitality-related ventures. Winners of the Dubai World Hospitality Championship will also be registered for professional certification.” Putting the hospitality sector at the heart of the SME equation Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME, said: “The vision of Dubai SME is to make Dubai an ideal hub for entrepreneurs and the owners of small and medium enterprises, and through supporting entrepreneurship of new and emerging businesses to commence their development and expansion to become among the most competitive businesses in the future. “The hospitality sector, which is a vital one in the Emirate of Dubai, is experiencing rapid growth measuring up to 16.9 per cent per annum according to international reports, and Dubai SME takes great interest in such sectors that significantly contribute to Dubai’s economy. Dubai SME is keen on helping the owners of SMEs to grow and develop by providing all needs to hone skills, and overcome the obstacles in the process of their work.” For an online version, please visit:

www.smeadvisor.com/2013/11/ something-cookin-smes-on-the-menu

MOVERS AND SHAKERS

Most admired leadership coach –

Mark C. Thompson Just about every entrepreneur is looking for ways to defy the initial roadblocks – colossal risks, scarce resources, limited capital – and emerge triumphant on the top. In this quest for success, however, he or she often overlooks the fundamental principles of management, leadership and business growth. Here, we fill this gap by speaking to world-renowned expert, leadership coach, venture capitalist and bestselling author – Mark C. Thompson.

ntrepreneurs in the region are often struggling to secure any funding they possibly can to transform their ideas into successful businesses. There’s no denying of the fact that this is a top priority. But – something that they completely ignore, sadly to their own peril, is the importance of connecting with a mentor; an experienced industry expert who can offer guidance on core management issues. And, who better to turn to than a world-class expert who has worked with some of the top entrepreneurs in the world? In an exclusive interview with SME Advisor, Mark C. Thompson addressed these queries and offered excellent advice on how you can be the next entrepreneurial genius…

what engineers had worked tirelessly create complexity into – he made it simple and aesthetically beautiful – concepts that people never imagined around engineering. So, to answer your question, that entrepreneur was born, not made. “The biggest problem that you don’t learn to solve at management school is how to manage and motivate great people to do the work for you. Entrepreneurs and managers have to learn to evolve that skill over time. If you want to scale your business, you need a room full of people willing to put everything that they have into your business. In fact, a great example is that of Richard Branson, who often says – we don’t have to be stars as individuals but we have to be a star as a team.

Mark, what are some common traits that you find Do you think the increasing push towards in every entrepreneur? Is there is a pre-defined entrepreneurship is at the cost of good old management skills? If everyone becomes an template? “If there’s a common part of DNA in every entrepreneur, entrepreneur, who will be responsible for the daily I would say it’s appetite for risk and competition. You business activities? may be an introvert or an extrovert; no matter what your “I think this is a great question because it shoots down personality type is, you need to have that sense of doing to the deep mythology of the meaning of the word something special and creating an impact on the world. entrepreneur. Going back to my previous analogy, I And this requires a competitive edge.” don’t think an entrepreneur is a lone wolf. The idea of entrepreneurship is not about everybody wanting to Having worked with some of the top entrepreneurs in be doing their own thing, it’s about finding a product the world, would you say entrepreneurial geniuses like or service that changes the game in the marketplace Steve Jobs are born or trained? Is it nature or nurture? and improves people’s lives or offers a better value “Steve Jobs was born an entrepreneur. He was an artist. equation for the customer. It’s innovation, that’s what The story of Steve Jobs is one of the hardest. He was entrepreneurship is to me. And, to achieve this you always coming back to industrial design, always having need to have a fantastic team. Remember, nothing this Edison or Picasso like vision on how to reorganise worthwile ever gets done alone.”

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November 2013

MOVERS AND SHAKERS

Constantly reinventing yourself is the formula for unstoppable growth.

Mark Thompson

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ÂŠ Dun & Bradstreet, Inc., 2013

MOVERS AND SHAKERS

What is the formula for unstoppable growth? “As I just mentioned, constantly reinventing yourself is the formula for unstoppable growth. This is actually Richard Branson’s business model. People think he invents but what he really does is – takes existing businesses that have become slow and complacent and reinvents them. He adds energy to them so that they get back to where they started from and are back to doing what they were special at – he reinvents. Let’s take an example. At Intel, they always have a new chip that is going to come out and cannibalise their own chip – that’s the formula for unstoppable growth. The mantra is do onto yourself before others do onto you! But, I should add here that this is pretty hard to do because once you have success you tend to become more risk-averse.” Why do you think companies get complacent after they’ve tasted success? “Because it’s comfortable and defensible. For instance, when you want to do something new, you go to the company’s board of directors and say now I want to mess with what’s working. Their reaction won’t be very welcoming. But, in reality, if you aren’t doing constant research and development, someone else will come along the way and do it and invent something new!” What are some key factors that you look for when investing in a startup or small business? “I think venture capitalists tend to be risk-averse – which I understand is a bit ironic – because as a venture capitalist you are taking a whole lot or risk anyway. I like to look at the history of the individual raising this capital. I consider leadership traits and I like to see a new way of approaching a business. This is of abundant significance because otherwise all you are doing is going with very little capital into a very competitive business; I need a fresh new approach. What’s going to be the game-changer and how can you demonstrate this to me? So to summarise, I look at experience, differentiation, and game-changing value. “Another important thing to mention here is that an entrepreneur also needs to put some thought into who (venture capitalist) they want to work with.

The business owner has more experience as he or she is dealing directly with the customer. On the other hand, the VC or the investor probably has a broad perspective depending if they’ve had any prior experience in the industry. What I would suggest to an entrepreneur, in this regard, is to get smart money. Don’t just get the first finance that’s being raised or given to you. Select an investor as carefully as you would hire somebody, so ‘hire your money’. I know it’s hard to raise capital but dumb money can often be more damaging in business.”

Mark further explains these three mistakes: Hire great talent: One area that entrepreneurs aren’t naturally good at – and don’t necessarily learn at management school – is recognising and attracting great people to work within their company. Entrepreneurs need to employ people that are passionate about the business and are willing to give their 100 per cent to it. Delegate: A calamitous mistake that entrepreneurs tend to make is not being able to share responsibility. Entrepreneurs tend to look at their business like a baby and want to nurture its growth all by themselves. Although it might not be as intuitive as it seems, delegating tasks to experienced professionals at different stages of business growth is crucial. Stay ahead of the curve: Mark also suggests introducing innovative solutions within your business – such as high-tech mobile applications - that augment the overall experience of a customer. Constant innovation, especially during the early stages of business, is extremely important.

You are the co-author of the popular publication - Admired: 21 Ways to Double Your Value - alongside Bonita S. Thompson. Tell us a little bit about your “Admired” analogy. How is this As a venture capitalist, what kind of important within a company? investment opportunity do you see “The reason we use the word ‘admired’ within this region? is because a lot companies work really “I think this is your time. When I come to hard to get on Fortune’s Most Admired list. Dubai, I see the physical representation The idea behind this is not just because of confidence. I see the opportunity for they want to be admired but because the Middle East to lead on a global basis. It’s companies that are admired have brands showing all the strengths of an emerging that are the first ones that come to mind market for the region. A great example when you think of a particular product in this regard is that of Emirates Airlines or service. For instance, when you are – they have great customer service and looking for a cool consumer electronic integrity, two qualities of a leading brand.” item, Samsung immediately comes to mind. It de-risks the value equation – I What are some common mistakes know what I’m getting when I get a coke aspiring entrepreneurs and SME owners or a McDonalds Burger – now that’s being make in the process of building their admired. So, it’s about the intrinsic values business? that make consumers reach out to your “I think that it’s important to understand product first.” that you as an entrepreneur are both an asset and impediment to your business. For an online version, please visit: There are three common errors that I see www.smeadvisor.com/2013/11/mostadmired-leadership-coach/ entrepreneurs make very often.”

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MOVERS AND SHAKERS

The Webmaster:

Majed Al Suwaidi and technology’s one-stop shop Dubai is at the epicentre of the region’s initiatives designed to boost entrepreneurial innovation and supercharge SME growth. And, an integral part of this ecosystem is Dubai’s imposing lineup of free zones. Dubai Internet City (DIC), one of the primary and most prominent of all, has fostered technological development through constant support to SMEs and startups ever since its launch in 2000. This ICT cluster – operating under the umbrella group, TECOM Investments – embraces all elements of the ICT value chain and is without doubt synonymous to technological innovation. Leading this evolving ICT cluster is Managing Director of DIC and Dubai Outsource Zone, Majed Al Suwaidi, who spoke to SME Advisor about DIC’s unique appeal to SMEs, its latest initiatives and the new hotspot for aspiring tech entrepreneurs – in5 innovation hub…

s an increasing number of business owners hottest tech trends, newest software or hardware. I think our approach, here at DIC, is to always find new entrants in the region add ICT development to their into the market and try to convince them to be in Dubai – corporate agenda, the need to provide tech giants with cutting-edge infrastructure and or in the UAE – so that they can be part of an environment favourable business conditions is quite apparent. In fact, that is picking up on technology very quickly.” Dubai Internet City has been championing this cause – by offering tax-free status, 100 per cent ownership, and other What personally appeals to you most about the ICT benefits – for over a decade. sector? But, here’s the caveat – what about the new talent? The “It’s really difficult to pin down any one area within the truth is that aspiring tech startups and entrepreneurs ICT sector. I like to look at it as a whole. This includes require further attention and support because these everything from entrepreneurial innovation to the kind entities, in reality, have the potential to build the next- of infrastructure multinational companies should build to strengthen the backbone of the technology economy; generation ‘Facebook’, ‘Microsoft’ or ‘Apple’. Majed Al it’s the complete ICT value-chain.” Suwaidi, Managing Director of Dubai Internet City and Dubai Outsource Zone, recognises their growing In terms of innovation and ICT development, do you significance and explains how he’s managed to steer DIC’s focus in this direction… think Dubai has the potential to become the next Silicon Valley? In light of the technological revolution happening right “I think Dubai can complement Silicon Valley and the major now, does managing an ICT cluster require a different technology centres across the world. We are a different approach when compared to other TECOM clusters? market from Silicon Valley, but I am confident that Dubai “It’s quite a stimulating experience because when you’re can become the Middle East’s largest technology centre, working in the technology industry, things change every home to some of the world’s brightest and most innovative day – something that’s interesting today, might not be as startups.” interesting tomorrow. And, this keeps everyone on an edge; What is the current occupancy rate at DIC? we are constantly trying to keep up with new developments and adopt innovative technology as fast as we can. It also “We are reaching full capacity, but we are still happy to keeps all our business partners on their toes. receive applications from more companies who want to “It’s also crucial to realise that people are becoming become a part of DIC and are interested in registering much more demanding – whether it’s for the latest gadgets, and setting up their businesses here. We are committed to

comprehensive benefits to startups and SMEs. A very important aspect to highlight is that what we provide here, at DIC, is not just office space, we offer a quasicommunity of people working together which is of great value to SMEs and small businesses. Our business partners can freely interact with their neighbours – these are companies that could potentially become their partners in the future. The community aspect of the free zone offers a fantastic advantage that attract companies to be a part of DIC.”

We offer subsidised products that help businesses spend their money on core development instead of setting up their business.

Majed Al Suwaidi, Managing Director, Dubai Internet City and Dubai Outsource Zone

finding smart solutions for all companies’ requirements and our team continually strives to achieve this.” As one of the oldest of the free zones, do you feel that DIC has in some ways evolved further than the others? “I take the view that all the different clusters complement one another very well. For instance, the Education cluster complements the Media and ICT clusters in a substantial way. Meanwhile, the ICT cluster fits in well with the Science cluster, Education is the cornerstone of all technological development, and so on.

We create and maintain a very healthy exchange between the various clusters of TECOM investments at every stage of the value-chain. At the end of the day, the goal is to always help each other evolve into better clusters and provide added value to our business partners.” Do you feel that there’s a level of symbiotic exchange between the ‘mega’ businesses in DIC and the smaller players, or do they simply co-exist? “Of course. A great example is the MoU we’ve recently signed with Microsoft for its BizSpark project which offers a raft of

What do you regard as the key factors in a free zone environment that facilitate the growth of a startup or SME? “A crucial factor for an SME, in its initial stage of growth, is to channel all its time and energy into the business itself, and not on the tedious procedures of company setup. And, this is where we step in. We act as a facilitator in the process and ensure that an SME owner or entrepreneur doesn’t have to struggle to start the business. We provide a one-stop shop solution where everything happens in one location, which acts as a catalyst in their business development. “We offer subsidised products that help businesses spend their money on core development instead of setting up their business. In May this year, we launched in5, an innovation hub which aims to foster and promote entrepreneurship in order to further develop the technology start-up system in Dubai and the region. in5 provides discounted office space and infrastructure, support and a dynamic and engaging environment to entrepreneurs. Key benefits include set-up support, mentoring, training, networking opportunities and access to funding.”

November 2013

MOVERS AND SHAKERS

your own business and nurture you in any way possible. Finally, if you’re simply looking to network, in5 is the right place. “Overall, in5’s mission statement highlights five major areas within which we offer support – setup framework, mentorship, training, networking and access to funding. However, we don’t like to confine ourselves only to these areas – in5 goes above and beyond to cultivate tech startups. “Our long-term goal is to become the centre of technology – we will continue to do so with workshops, informative sessions, inspiring talks, whatever the entrepreneur needs in order to support this burgeoning industry.”

Considering the popularity and success of the current TECOM clusters, do you foresee the introduction of any more clusters in the near future? “The sky is the limit. But, at the moment, we have covered most sectors that are critical to develop. We have clusters dedicated to Science, Media, ICT, Education, Design, and so on. We are more or less currently touching base on all the industries we want to push forward.”

Overall, in5’s mission statement highlights five major areas within which we offer support – setup framework, mentorship, training, networking and access to funding.

How did in5 come about? Tell us a little bit about this initiative. “Dubai, as a city, has done a brilliant job of positioning itself as a hub for SME What kind of support does in5 offer? innovation and growth. The Emirate “Anyone that’s interested in and associated endeavours to create a knowledge- with the technology sector has something based economy and recognises that to gain out of in5. If you are an investor, you entrepreneurial growth is key for this could find a new business venture to work to happen. DIC is also aligned with with, or even take home something new for this vision and in order to support the current startups you’ve invested in. On entrepreneurship in the technology the other hand, if you are a government or sector, we introduced the in5 innovation external agency, you could hire fresh talent! hub. Through this initiative, we hope “For the entrepreneur, there’s the to nurture and sustain up and coming opportunity to meet and interact with tech talent.” the right people – investors, fellow “in5 is not an incubator or accelerator, entrepreneurs, mentors and so on – all it’s an innovation hub – a combination under one roof. More than investors, I of the two. It’s a platform which we’ve think meeting expert mentors is crucial, created to attract different players in the because not everyone is willing to mentor technology arena – this includes investors, any startup. It’s more of an organic relationship and that’s why we don’t tech startups, new graduates, government assign our members to a pre-decided agencies or any business professional interested in the technology industry. mentor. We provide them with the right Simply put, just like there are different environment and let this collaboration hubs in the city for designers or writers happen on its own. to meet and exchange ideas, in5 is a place “If you are a fresh graduate, we will for the tech savvy.” encourage and support you in setting up

How can a startup become a part of in5? “The membership process is simple – please get in touch with us and our team will gladly assist you. The hub has two different kinds of levels – one is a public space and the other is reserved for members. If you are a startup that isn’t registered with us, you can still work out of our public space. But, if you are a registered startup, you can use our dedicated workspace. This is a much more exclusive area – the reason being that if you have a great idea and you’re working on it, you should be able to get some benefit out of the person sitting next to you. Seriousness and commitment are key factors that we consider in every potential member.” Finally, what is your personal advice to budding tech entrepreneurs in the region? “Go for it! There are immense business opportunities available in the region and you shouldn’t wait any longer. I think even the simplest idea today has a strong fighting chance as long as the person behind it is giving their 100 per cent to the project. Additionally, do come and register with in5 so that we know who you are. We don’t charge you to be a part of our events or to register with us. I urge you to take full advantage of this wonderful platform and the plethora of benefits that come along with it. Even the slightest impact we make on your business, is an absolute delight for our team and shows us that we are on the right track!” For an online version, please visit:

www.smeadvisor.com/2013/11/thewebmaster-majed-al-suwaidi-andtechnologys-one-stop-shop

MOVERS AND SHAKERS

Smart thinking with mind guru Tony Buzan Everyone knows that Tony Buzan invented the MindMap, a dazzling, completely original way of presenting data that saves time and money, supercharges problem-solving and boosts intelligence. His books - like MindMaps for Business, Use Your Head and Use Your Memory - have been read by millions and he’s one of the most highly-rated creative problem-solvers in the world. If you don’t use MindMaps for your business, you will when you’ve read this exclusive interview…

ow did you invent MindMaps? It began when I was at school. I was struck by how dull, how unengaging, how monochromatic school education was. It wasn’t that the subjects were dull in themselves. It was how they were presented, what the education actually amounted to. Surely there was a better way? When I invented MindMaps, I felt liberated and furious. I had done all my school work, completed my senior school, completed my university. All this work - and I’d wasted my time with linear, boring books.

How successful has iMindMap been and do you feel it adds further dimensionality to your approach? When I invented MindMaps, one of my main wishes was for computers to be able to handle and produce MindMaps. And I thought that must be easy. This was back in the late 1970s early 1980s, computers couldn’t do it. Although MindMaps is a profoundly simple technique, it’s using an astonishingly complex amount of data. Even though the brain could do it, computers couldn’t. I worked for 30 years, with different organisations, the very best technology computer companies. All the top ones in the world. All the computer could do is become slow robotic thinkers, producing mechanical, linear, rigid notes. So they were pre-MindMap. And I worked on it, and worked on it. Because it had to be a representation of human thinking, which is organic and natural. So I took a long time. Then I worked with a man called Chris Griffith, an educator who worked with technology. He loved MindMaps, he taught

his own children MindMaps. He committed to cracking that code. He cracked that code. And he produced a MindMap that looked as if a human hand and brain had produced it. That is why it worked, that’s why it is successful. That’s why the father of MindMaps loves that child. Because it shows anybody, how to do MindMaps (which they could do with their hands as well) on the computer with iMindMaps. Is it successful? Hundreds of thousands of people use it. There are millions of iMindMaps around the world. And when you check on Google for example, there are hundreds of millions of MindMaps and many of them are iMindMaps. All the people who I have taught mind-mapping through television programmes, books, they naturally gravitate towards iMindMaps. Because it is congruent, it is real, and that is what a MindMap really is. Apart from that it is totally unsuccessful! What was your reaction when you first heard that you were a Nobel Peace Prize nominee? My reaction was surprised, bemusement, in other words how delightful, how honouring. A peace prize. Why? The reason given by the nominations was: ‘we who are qualified to nominate, believe that mindmapping is a tool, a thinking and learning tool which helps individuals to learn, to think, to remember, to communicate, to understand understanding, to understand misunderstanding, to help people negotiate and come to good conclusions. It helps

individuals to find their global vision, their purpose in life, and therefore (this is their argument) it creates more peacefulness, more enthusiasm, more creativity, more forward-moving individuals, more multiple intelligent thinking’. And thus the MindMaps create more peacefulness and happiness, and that is why I was nominated. I was very happy, because for me the MindMap is like my baby, that baby produces billions of other babies. So I am very happy, and now it is transparent that I have been nominated three times in a row and I am already nominated for next year. So it is a lovely thought, a nomination in itself is, a wonderful honour and it is not really for me. It is for the MindMap, so it is like a living animal, which itself is like a neuron, it moves around, it touches people, grabs them. People embrace MindMaps. Do you believe that Mind-Mapping approaches actually increase your intelligence, or rather, facilitate ways of processing information? Do I think it increases intelligence? I don’t think it does - I know it does. Processing information is a part of it. As it increases thinking, MindMaps improves memory, it improves creativity, it improves analysis, it improves understanding, it improves comprehension, it improves the ability to organise, structure and refine. Does that improve intelligence? So yes it does. It is an intelligence improvement tool. And MindMaps improves all the multiple intelligences: personal intelligence, social

Tony Buzan

intelligence, creative intelligence, verbal intelligence, mathematical intelligence, logical intelligence, spatial intelligence, ethical intelligence. It improves all of your intelligences. You’ve been an outspoken commentator on educational issues for 30 years - so what are the key reforms you’d like to see in the international educational agenda? I have been very outspoken, and I have become more and more outspoken, because it is so important. On an international scale? How long do you have? The education system has to focus on learning how to learn. It has to focus on mental literacy, not just literacy with words, letters and numbers. The mind, the brain, the cognitive thinking skills, the ability of the child to develop to be able to multiply thinking. To meta-cognate - meta-cognition is to think about thinking. Aristotle and Socrates said the “unexamined life is not

worth living”. If we reverse that, it becomes the case that the examined life is worth living. So we are enriching our lives and our purpose when we ask: how do I look? How do I think? How can I generate ideas better? How can I find solutions? So the educational systems have to transform from linear, monochromatic thinking, rigid structures, and examinationbased systems. All the education systems around the world originated in factories and armies, where people learnt how to nonthink. Because when you start thinking in a military operation, and the entire squad sits around and chats about it, then everybody sits around wondering what to do, and they get attacked. So in those times, learning how to obey was actually a good thing but not an absolute thing. It was only for that particular time. Schools now are still based in the industrial age, in the industrial military age. We are no longer in that age, we are not even in the information age, nor are we in the

knowledge age. We are in the intelligence age. So educational systems have to teach every child how to develop all of his intelligences, to learn how to meta-cognate. To think about thinking. To use MindMaps for multiple uses. In any way you want to think, MindMap can help you. If you want to remember MindMap it, if you want to plan your wedding MindMap it, if you want to go shopping, MindMap the shopping. If you want to solve astronomical and cosmological problems, MindMap it. If you want to negotiate with people, MindMap it. If you want to change your life and self-examine, MindMap it. So all the educational systems have to do is focus on the development of human intelligence. What are the main barriers that these educational systems face? Many educational systems want to make this change, and there are many taking it up right now. For example, Mexico is already working on teaching MindMaps and mental

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MOVERS AND SHAKERS

teachers, all the great spiritual leaders always spoke in metaphors. So what have educational systems got to do? They’ve got to realise that the most important factor in their schools, in their country, in their future is education. It is not making money. Cause if you only concentrate on making money, you don’t know what to do. You don’t know how to think and use that money. You don’t know how to create it, and if you do create it, you don’t know how to save it, use it, share it. So the education systems need to upgrade their systems. You have to invest in educational capital and that is what the education systems have to do. And what countries have being doing that? Singapore and Norway. Which are the two top educational countries in the world? Incidentally, Singapore and Norway.

Tony Buzan

literacy throughout the country. Singapore has already begun. I have taught 5000 Singaporean teachers on how to MindMap, who will teach all the children. So then they can take it to the next level. After they learn all the basics, the next level is to apply it. How to apply it to Chemistry? Geography? Mathematics? Psychology? All they have to do is make a decision. And when a government and school does that: it saves time and makes money. Because linear note making causes misunderstandings, makes them bored, they lose energy, their creativity shrivels. Why waste time doing that? Dubai has announced its bid for Expo2020, what kind of city is it going to be? A Smart City. They better MindMap it! And Dubai is starting to do that, schools are starting to teach their children about MindMaps, companies are starting to teach their employees about MindMaps, senior government officials are mind-mapping themselves. So yeah, it is simple. You just got to be intelligent about being smart. Are there some cultures that have taken up your concepts more enthusiastically than others - and if so, which? Many countries are adopting MindMaps, I have already mentioned Singapore, and there is also Malaysia, Mexico, New Zealand, Germany, other countries in Latin America, and pockets of Americans using MindMaps. In England, Ireland, Scotland, and Wales. Different pockets of people using MindMaps, multinational companies who are like countries, for example IBM, Apple Inc., HSBC - you name it.

Not every single person in the organisation uses it, but huge groups of them do. In IBM, one gigantic group of accountants use MindMaps. It is a growing development of intelligence. And everywhere you look, you will see MindMaps. What particular aspects of running a business do you feel can be particularly empowered by a Mind-Mapping approach? Very simple answer to that question. What is the business? A business is creativity, a business is developing talent, development of human resource, planning, communication, creating an environment, and you are asking me what a MindMap has to do with that? Gautham Gangliani runs a company called the Right Selection, and they run their organisation with MindMaps. And they also publish books like MindMaps for Businesses, a BBC Publication. It has examples about the how to use MindMaps in businesses. Also you could log on to ThinkBuzan.com or go to youtube.com and check Buzan videos. Thanks to the Think Buzan network, your approaches have increasingly become part of the mainstream; but what would be the final piece of the jigsaw that encourages total acceptance by psychologists and educationalists? In education, every teacher has to develop his own creative thinking, and to present on a MindMap he or she will have to represent it in metaphoric ways. Aristotle said the highest level of thinking is metaphor. The ability to use images and connect them, multi-sensory images and connecting them together. The teacher has to learn to do that. All the great

Do you see increasing developments in biotechnology and nanotechnology as bringing us nearer to creating a truly intelligent, ‘conscious’ machine? Are we that close to being able to imprint the way the mind works? We are definitely on that path. However, the first goal has to be not to develop the machine to become intelligent. You have to help intelligence develop itself, much of formal education has prevented the bio-computer (the human brain), from regeneration. They had crushed it, disengaged it, and dismembered it. And so an additional thought is, yes let’s check out good old computers, nano and micro technology because it could be very helpful. But first, focus on the development of the human brain. It can create nanotechnology, it can create an image of itself. If the brain is going to create an image of itself how is it going to do it? All the companies were trying to make a computer MindMap but they couldn’t do that. How does the brain do it? Even now they can’t do it. iMindMaps makes MindMaps that are very similar to the hand drawn mind map but the brain can make a MindMap quickly which a computer cannot do. The brain can make a MindMap inside itself and regenerate. No computer can come even close to doing that. So it is much more important to first focus on the brain and find what the brain is. Then you can come up with some technology that is actually useful. For an online version, please visit:

www.smeadvisor.com/2013/11/smartthinking-with-mind-guru-tony-buzan

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Innovation

The Innovation Imperative Every day, we are told that we must innovate or die. Yet how true is this for an SME and how do we go about building a culture of innovation in the midst of a host of conflicting day-to-day priorities? Simon Hodges, Chief Executive Officer of the Alchemy Network Middle East, argues that innovation is actually the one and only fundamental key to supercharging success and growth, and here, he puts forward a critical action plan for SME owners and directors to follow.

hen we think of an innovative company, we usually focus on those businesses operating in the technology sector. Yet today more than ever, all companies need to innovate to survive and grow. Strategiesâ&#x20AC;&#x2122; that were previously successful are proving to be ineffective and the ability of potential customers to use the social media to understand the market place means that business

owners have to continually embrace innovative ways of meeting these needs. So how should business owners operate in this new world? The answer is that their businesses need to create strategies that put the delivery of a product or service to their customers in a consistent and sustainable way at the heart of everything they do and then they need to implement that strategy by looking at innovative ways

efforts of your business on strategies to grow your business. Finally, by planning to exit your business you will focus on the actions that will create a value for you.

Simon Hodges, CEO of the Alchemy Network Middle East

The simple fact is that businesses need innovative leaders to survive in the competitive market that most SMEs operate in. of continually staying one step ahead of their competitors. The role of innovative leadership The simple fact is that businesses need innovative leaders to survive in the competitive market that most SME businesses operate in. The sad fact is that many are not willing or able to admit this fact but unfortunately it is almost always necessary if a business is to reach its full potential. If you are a business owner and feel you are working harder every day just to stand still (and the excitement that you felt when you first started your business has turned into a daily struggle) then perhaps you are one of the many business leaders that would benefit from thinking out of the box and adopting innovative ways to operate your business. The first step on this journey is to take a deep breath and step back from the dayto-day activities of your business to give

you a chance to evaluate what needs to be done. This article will briefly explore six innovative leadership techniques that have successfully been used in thousands of SMEs across the globe and might help you think about your business in a different light. The innovation toolkit First, it is important to put in place a strategy that correctly positions the business within its market place and creates a unique selling proposition that provides the one reason customers should buy from you. Then look at what the product or service actually does for your customers so that you can market your business in a much more effective way. By learning to understand the lifetime value of a customer - and using the seven profit multipliers - will help to focus the

Let’s look in a bit more detail in each of these: The Oxford English Dictionary describes a strategy as “a plan of action designed to achieve a long-term or overall aim.” This simple definition provides the first pointer as to what you need to do. Many business leaders say that they do not need to waste time preparing such a plan as they already know what they want to do. Here lies the problem. A plan is not for the leader but for everyone else: the very people who need to understand their role in assisting you in delivering what you want. Think of your plan in these terms. If you land in a new city and ask a taxi driver to drive you to your office, it is more likely you will get there quicker if you first show them a location map of the office so that they can plan a good route. A strategic plan is simply a map that provides instructions for everyone to follow in order to reach a goal established by you. It is important to have clear objectives within a strategy because increasingly consumers want to buy/use products and services from companies they trust; suppliers want to form business partnerships with companies they can rely on; employees want to work for companies they respect; and future Investors want to support businesses that they see as having a realistic plan. Do you fully understand your USP? Before putting in place a strategic plan it is essential to correctly position your business. Start this process by asking two questions: Which market are we addressing? And what makes us different? Remember in business you can’t be all things to all men so it makes sense to stop marketing to the wrong people the ‘wrong people’ are the ones who do not want or cannot afford the products or services that your business offers. For example for a business that is selling Rolls Royce cars there is little to be gained in talking to a potential customer who can only afford a Mazda. Therefore define your market by concentrating on a particular niche and then target it.

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Innovation

A niche market is a specific group of people or businesses that want and need your product or service, and can afford to pay for it. By marketing to a specific niche you are stating that you are the company that knows their needs and requirements best. If no one else meets their needs in this way then you are seen as the logical company to turn to. It is surprising how many businesses ignore this simple rule and therefore those that do are often seen as being very innovative. Once a niche market has been identified ask yourself, what is the one unique thing you offer that makes your prospective customers think, ‘Wow, I must have this product or service? Creating a unique selling proposition identifies the one real benefit that differentiates you from your competition in the mind of your potential customers. To do this, ask yourself a further two questions: first, why do people do business with you? And then if people aren’t doing business with you, why should they? A good unique selling proposition (USP) attracts attention, distinguishes you from the competition and motivates your prospective customers to take action NOW. If your prospective customer can immediately see what it is you do that is so unique and they find it irresistible you’ve created your USP. See life from the customer’s perspective If you now find yourself interested by this line of thought the time has come to begin to think about the needs of your customers in an innovative way. Ask yourself what do your customers really want? People in reality do not buy your products or services (features), they buy the results (benefits) your product or service brings them. A feature is most often some physical aspect of a product - its colour or size of engine - and an attribute if it’s a service. A benefit is what the product or service can do for the person buying it - how it can make their lives better, how it can save time. So a benefit is not a thing - it’s an aspect of the customer’s life that is made better as a result of the purchase. Benefits come from features and this is sometimes where confusion can arise when marketing a product or service. For example, if a car has a 230 horse-power

purchases from you in one year multiplied by the number of years they remain as a customer plus the monetary value of any referrals. By understanding the lifetime value of a customer you will know through a simple scientific method what you should spend on keeping your existing customers. It will also tell you how much you can afford to spend on getting new customers. As companies look to survive they look to manage their costs but there is a limit to how much a business can CUT COSTS before quality and service is affected. Therefore, it makes sense to use NO LIMIT STRATEGIES.

Learning to understand the lifetime value of a customer - and using the seven profit multipliers - will help to focus the efforts of your business on strategies to grow. engine, that’s a feature but is this what the person who buys the car wants? The reality is that this engine gives the driver power, speed and pleasure. These are benefits - something the customer feels, gets or is satisfied by. Benefits therefore are all about the customers and it is these benefits that really sell. So the answer is to tell the customer about the benefits in simple plain language so that they understand why they need to speak to you. Most businesses spend a great deal of time and effort in finding new customers but having found them, they let them slip through their fingers and allow them to go to other competitors. Even though it is statistically easier to sell to existing customers, this is often not enough reason to concentrate on keeping your existing customers so you should perhaps consider understanding the lifetime value of your customer. The lifetime value of a customer is calculated by taking the average purchase value of the product or service multiplied by the number of times a customer

The seven profit multipliers The next innovation is to look at improving seven profit multipliers in the following areas: the number of leads; the conversion rate; the number of transactions per year; transaction value; profit margins; number of referrals; and the average buying lifetime in years. Increasing just one of these will help your business to grow… BUT by increasing ALL of these Multipliers by just a small margin, you will exponentially grow your bottom line profits! What are you hoping to get? Finally, the ambition of every business owner should eventually be to sell the business at the highest possible price at any given moment in time. However, whether or not you actually wish to sell your business is irrelevant. As a result of your mindset change you will consciously build a business rather than create just a job. The ‘exit strategy mindset’ compels you to create policies, plans and procedures and as your skills, planning, systems and methods improve... your workload will decrease but your results will increase. This makes the business operate efficiently, effectively and profitably without you having to be there to run it. Thus, the business then works on ‘autopilot’ and becomes ‘investor ready’ by becoming truly innovative. Success will have been achieved! For an online version, please visit:

www.smeadvisor.com/2013/11/theinnovation-imperative/

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Workspace

Flexible office solutions where cashflow is king One of the classic constraints of a traditional leased office is that it ties up your resources at the very time when you may need them most. It can become a dangerously high fixed cost that drains cashflow and sucks the life out of an otherwise promising venture. SME Advisor spoke to Servcorp, the world leader in serviced office provision, about the tangible benefits of a flexible serviced office and its liberating impact on cashflow and resources.

hen Dubai SME recently unveiled its list of the supercharged businesses featuring in the elite Dubai SME 100, one of the key factors that these top companies had in common was strong cashflow. Yet during the qualification process, no less than 72 per cent of them

The harsh reality is that cashflow is easily impeded and lost through the steady dripping tap of expensive commitments. said the No.1 risk facing their business was threat to cashflow (largely from late payment of receivables and high fixed costs). Moreover, it’s no coincidence that in a 2009 survey of the global SME sector, the management consultancy

Booz & Co. found that lack of cashflow was the foremost factor driving young SMEs out of business. The harsh reality is that cashflow is easily impeded and lost through the steady dripping tap of expensive commitments - and a key culprit here is office accommodation that is not only surplus to requirements but impossible to exit, or even change. Especially when a business is in the first two years of its life-cycle, it’s extremely difficult to predict its future shape and success. Indeed, many SMEs can barely see beyond their next working capital cycle. Typically, the young SME will be vulnerable to sudden losses, unexpected lapses in markets, uncertain investor commitment, and the rising costs of bringing extra staff on board. There are also the expenses incurred for more positive reasons: the shift to larger offices, marketing to fresh markets and the raft of hard copy and online promotions and collaterals. If it is tied to a costly office contract - one that would be challenging to support even in better times - it’s especially unlikely to weather the storms of changing markets, needs and fortunes.

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Yet consider the alternative: the Serviced Office environment gives an SME a great deal more leasing flexibility - in fact, if we take Servcorp as an example, you can lease a high-quality facility from a period of one month through to three months, six months and 12 months (with all the added convenience of ‘pay as you go’). You can pay month by month, with the only up-front cost being a two-month security deposit. This means that if the business isn’t progressing according to plan, there is - quite literally - no harm done (you can even come back once you have better funding in place and have a valuable second attempt to kick-start your entrepreneurial dream!). From good to great… Another aspect of this all-important flexibility is that if your business is progressing exceptionally well, you can then trade-up to a bigger serviced office without having to complete an existing lease agreement - you simply switch over. Plus, the new office space will come complete with the same facilities as the last office, with whatever new ‘extras’ you may ask for. You can get everything you need for the new staff, so you won’t have to contact telecoms providers to install the extra equipment and connectivity you need. Nor will you have the do the rounds of furnishing specialists, purchasing desks, storage space and seating. Again, in a business environment where capital

customise for your business as many times as you wish. Perhaps you want any missed calls forwarded to your mobile? Or for reception to give a personal message that you can be found Downtown? In the case of Servcorp, for example, you simply access Servcorp Online, click on ‘My Communications’ and specify exactly the wording and phrasing you want. What’s more, each month you can specify the kind of package you want your all-inclusive charge to cover - so again, if one month you are reaping the benefits of an influx of client business, you can upgrade the services you can enjoy as a result (and of course, vice versa). In stark contrast to a traditional leased office, the serviced office payment model is like staying in a hotel - for example, at a hotel you know what the basic room rate is, but you can upgrade to a larger suite, or add in visits to a spa, day trips, etc. as and when your budget permits.

Another key cost saving results from the fact that you’ll also get first-class staff support.

Making you feel at home There’s sometimes a kind of residual prejudice against serviced offices whereby some people believe that they can’t be decorated as you wish - but nothing could be further from the truth. Of course they can. So you can put up artwork of your choosing or repaint entirely according to the needs and style palette of your brand. is king, the serviced office gives you the Plus you can bring in your own furniture key to preserving all-important funds and - meaning that if you’re moving from an facilitating better and better cashflow. already-furnished environment, you don’t Everything will be in place from Day One, have to pay for storage or double-up on and what you see can be adapted in a furnishings you already have. totally ongoing way, according to your budget and your appetite for growth. So Committing according to your pocket all in all, you can get huge cost savings The ongoing thread here is that the because you’re not squandering capital Serviced environment gives the ability not only to lessen your costs when you in infrastructure set-up. need to, but to predict exactly what Support you need, when you need it your outgoings will be each and every Another key cost saving results from the month. So you’re relieved from any fact that you’ll also get first-class staff uncertainty surrounding the largest support. Core job functions such as element of your overheads. If cashflow receptionist and PAs (the latter are highly- is king, the flexibility of the Service onequalified PAs who will be able to handle stop solution means that you are able to a wide range of marketing activities, for conserve valuable resources and budget example, not to mention basic book- in a way that lets you use your money keeping needs). By arrangement, these where it matters most - building your support staff will even be able to travel business. with you overseas to vital client meetings and conventions. You’ll have telephones For an online version, please visit: and e-mail answered in a completely www.smeadvisor.com/2013/11/flexiblebespoke way, which you can alter and office-solutions/

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Outsourcing your HR function – to do or not to do? The most productive period in an SME owner or director’s daily routine is undisputedly the time spent on managing the core business. Unfortunately, a huge chunk of this time is often consumed by day-to-day operational activities such as hiring, payroll management, team-building and so on. What if there was an easy way for your SME to hire, manage and retain top talent, implement sophisticated HR systems and rely on an expert to make all your HR decisions? Yes, this is a realistic possibility with the option to outsource your company’s HR function. We asked top expert Anu Daga, HR Manager, DHL Express UAE, to weigh in the pros and cons…

utsourcing – as a concept – is no rocket science. What do you do with tasks that you aren’t able to manage on your own? You ask for outside help. It’s as simple as that. In fact, outsourcing is especially advantageous to SMEs because it enables them to exploit a plethora of expert services which they might not be able to otherwise afford. Outsourcing your HR function, in particular, is no different. Low costs, access to a huge pool of talent, and support from an external team of HR experts are a few of the many benefits of going down this route. In an exclusive interview with SME Advisor, Anu Daga, HR Manager, DHL Express UAE, offered a detailed overview of outsourcing HR as an SME…

Should an SME hire or outsource HR? Is there really a right or wrong answer? Broadly speaking, there is no right or wrong answer, but there are a few considerations that can help SMEs decide which option they pick. For a relatively new or smaller SME, outsourcing the HR function makes sense. They can gain from the expertise available in the market and don’t have to invest in a dedicated HR function and systems. This can prove useful for busy hiring periods; when there is a legal issue, or when the company requires specific services. But larger SMEs or those that are rapidly growing would benefit from a full-time HR person who can support their expansion plans by implementing strict policies and procedures, establishing hiring

requirements, and developing a sound compensation approach. Another question to ask yourself is – what do you want to outsource? Transactional HR processes such as payroll, administration, systems are the ones that should be considered as they can be generic and don’t require business expertise or knowledge. The more complex HR processes such as talent management, performance management and learning and development if feasible should be managed internally. What are some of the advantages and disadvantages of outsourcing HR? Outsourcing provides flexibility, speed, cost effectiveness and sophisticated HR systems and processes within the reach of

smaller organisations. It also leaves SMEs free to concentrate on their core business. The greatest leverage is that SMEs will gain access to world-class expertise; and highly experienced professionals; employing such talent full-time would normally pose financial constraints. The obvious disadvantage is that this is a service provider who is not fully aligned to the needs of your business and lacks the understanding of your employees, work culture. While at a transactional level, the HR outsourced solution may meet the needs, there’s a risk of working with an HR person who is not experienced in your specific requirements. Sometimes it’s easier to have someone employed in-house to be able to make quick changes and adapt to the changing needs of the business environment. It is important to be aware of hidden costs, when work requirements take the outsourced professional over agreed hours. There is also the possibility of a lack of focus on your needs; many outsourcing firms work for multiple organisations at once and HR can create the feel that the HR service is commoditized. These risks however can be mitigated in the selection of the supplier and the service agreement. What are some of the advantages and disadvantages of having an in-house HR team? As a general rule when a company reaches 50 employees, it should start considering the investment in an HR team or professional. This is certainly where an in-house team might prove useful and effective. An internal HR resource is close to the business, engages with the management team; which allows direction, control and monitoring of the exact functions of the role. Immediacy, costcontrol and alignment with the business are other advantages. Businesses must ensure compliance with laws and regulations that govern personnel relations and management. HR professionals can monitor this area, and ensure avoidance of fines and possibly even lawsuits - while preserving the good reputation of your business. And generally speaking, it makes the employees and management feel that there is someone within their organisation they can approach when they need things – someone who has the knowledge and will be able to support them with the right guidance.

On the other side of the spectrum, it takes time and money to successfully implement a human resources department. To have a team or individuals that can do justice to the complete set of HR expertise that you are looking for is something that SMEs need to consider Does one approach work better than the other for certain companies? Of course, outsourcing versus in-house needs to be carefully considered. What works for one company might not work for another. Your company size, direction, values and mission may affect the decision. Outsourcing might mean being tied into a long contract; while internal HR still needs training and other more core HR functions which will help you add a competitive advantage to remain within the organisation. What factors should an SME consider when setting up HR? What are key points to look at before deciding between the two options? Ultimately, whichever route you choose, make sure it’s the right one for you, your business model and what you want to achieve on the people side of your strategy. Outsourcing will work well if both parties make a solid investment in the relationship. There should be similar expectations, and a good culture match. A good governance model is also critical. Outlining timelines and responsibilities means expectations of both buyer and provider are defined. Good governance ensures accountability and keeps a good relationship intact throughout the implementation process. Is there a hybrid approach that can be used? Certainly, as an SME grows its HR needs will change. We see a need for more HR staff with every growing business. While outsourcing brings all the benefits listed above, it might be prudent to have a combination of a small HR team in-house, which utilises outsourced HR for specific tasks beyond the in-house team’s capabilities. How can HR make or break an SME in its role as an employer? We believe the next few years are critical for SMEs to optimise their talent to become more competitive. A recent survey commissioned

by DHL Express revealed that SMEs who look beyond their borders for business are more successful. But with internationalisation comes a need for an HR function that understands the vision and goals of the organisation, can recruit the right people who will help the company move forward and ensure that the right HR practices are implemented to retain and grow the talent pool. The focus of the HR team needs to be on building an employee strategy that is long term and sustainable – in other words – an HR focus is fully aligned with the business. One way of doing this swiftly is to engage the services of an outsourced HR provider who can bring in the experience of other organisations and MNCs. Do you think that outsourcing companies would prefer working with bigger companies over SMEs? Not necessarily, as a long term contract works better on both sides. As a SME grows, so the HR function grows; and with time, the outsourcer will better understand the company’s ethos. When using an outsourcing company, do employees miss out on the ‘relationship’ aspect with the HR department? To a certain extent as mentioned in the earlier part of this interview. But a longterm contract brings greater mutual understanding and a closer relationship. To address this gap, the outsourced resource may be asked to be based within the organisation. How do the costs differ in both approaches? Both have cost implications. Outsourcing is a great way to manage costs early on in terms of HR functions; in-house costs can be managed very closely but beware of hidden costs with outsourcing. With a lot of HR functions conducted online, how important is it to maintain ‘human’ interaction? Nothing beats the human touch, but we are rapidly moving into an era where people expect to be able to do pretty much everything online; and online reduces costs and time. Using online support resources within the transactional HR processes can be a real asset and a means to efficient and effective HR.

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needs. Attracting and retaining talent with the right policies, practices, development framework requires different HR skillsets. In order to maintain a competitive edge; companies are expected to maintain best HR practices; outsourcing allows you to concentrate on core competencies while being assured of HR expertise.

Anu Daga, HR Manager, DHL Express UAE

DHL has been voted as the best employer platform. DHL Express UAE is also in the region for 2013 by Aon Hewitt. committed to developing management What kind of HR structure do you have capability and skills for the 21st century in place? How has this helped build – under the umbrella of respect and employee satisfaction and increase results. Our leadership and management employee retention? team are able to build a highly engaged We are certainly proud of the accolade; culture and a team of employees who are and recognise that our engaged and fully aligned to our business objectives, motivated team of DHL International customer objectives and work as a team. Specialists is the key to our success. By Our Certified International Specialist winning the award, we not only instill programme which is rolled out to 100,000 pride in our existing employees but also employees globally is a testament to our externally – we become more attractive; commitment in employee development. as an employer that is committed to its Obviously having the support of a global people. The external validation shows us organisation, systems and processes is that we are doing the right things and an advantage – but what is the key at the ensuring that our employees have the country level is to ensure that you have a best workplace in the market. At DHL, team of HR experts who understand the we pride ourselves on being an Employer local nuances, employee needs and are of Choice. We respect each and every able to adapt the generic HR practices individual, empower our employees to to meet the local business requirement. help develop our business and provide the There’s a term in DHL that we use – Think best service to our customers and create a Global, Act Local and the DHL UAE HR platform for them to be engaged in social team has definitely adopted this motto. responsibility projects under the umbrella – Spirit of Yellow. HR has evolved from being a basic DHL Express UAE has built a strong function to include complex areas HR platform with leading practices in such as talent acquisition, talent place for HR delivery, development engagement, performance management and engagement. In order to maintain and compensation. Is this a primary our leading edge in the market, we reason for SMEs to take the need for are committed to implementing HR HR seriously in their company and practices that nurture diversity in the outsource it to HR experts? workplace supported by an inclusive work The role of HR has indeed evolved with environment and a strong development changing times and changing employee

Can an outsourced HR function really understand the culture and ‘feel’ of your business? In a long-term outsourcing agreement, you can expect to see alignment of values and a greater understanding of the HR requirement. It is testament to the professionalism of an outsourced HR company that it manages to engage with its clients effectively and the ability of the SME to set the expectations in the service agreement. A great example of this is training consultancies that come into organisations and through a deep dive with the key stakeholders – are able to deliver the culture and mindset in their training interventions. Does an outsourced HR function have to be a complete business set-up, or simply a senior freelancer? This depends on the requirement. A freelancer might be perfect for a company a handful of employees or a project where the freelancer can come in and implement HR processes and programs. But a rapidly expanding SME with a sizeable employee base would benefit more from a well-establishedoutsourcing company with a dedicated inhouse HR person driving the expectations and level of service quality expected from the outsourced company. Will an outsourced HR function have more specially-qualified and highlytrained staff? This is certainly one of the advantages in outsourcing; through which SMEs can access a pool of talented HR professionals with specialisms in different areas of the HR function. The ability and value of being able to attract the same breadth of expertise in the in-house team is not really a viable option. For an online version, please visit:

www.smeadvisor.com/2013/11/outsourcingyour-hr-function/

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Tele-Business – using the power of mobility and data to drive business on the move The business world has reached a ‘tipping point’ - a crucial moment when the old ways of doing things are rapidly being replaced by a fast-paced, digital mobility where the first and second screens in business life are delivering replicable data at the customer interface, wherever it may be. Does your business know the new rules of Tele-Business - and is it being supercharged with the benefits of unlimited data on the move? Vikram Chadha, du’s Vice President, SME Marketing, spells out the new agenda and explains how it’s a powerful catalyst for profit, change and growth.

Mobility is a now a key disruptive force in business life - just like the Web was 15 years ago. The deskbound culture is fading fast, and today is all about a connected world.

act: business is moving towards a digital aren’t just an extension of the office or a supplement platform, a world of supreme data agility to what is happening back at base. The wealth of where our lives are being changed by the data that drives this new mobility means that the convergence of social/local/mobile. This entire, comprehensive value-set of the office can be new mindset is all about a customer-first capability, accessed on-the-move and immediately put to work where a mobile screen can deliver fantastically rich, at the customer interface. There is very little limit powerful data on the spot. Businesses simply have to the volume, wealth and flexibility of data which to understand this phenomenon to succeed. The old is now underwriting and driving this new working days of a sales operative going back to HQ ‘to prepare paradigm - and that means a critical quantum leap a full proposal’ are gone for good: the emphasis now in your ability to service customers and convert is on making that proposal there and then - closing prospects by using the sheer power of multi-platform the deal with real-time information that’s as powerful, Tele-Business. textured and precise at point of delivery as it would Three compelling benefits be on a PC back at base. Mobility is a now a key disruptive force in Working at the interface of social/local/mobile - and business life - just like the Web was 15 years ago. releasing that potential across the way your staff work The deskbound culture is fading fast, and today is - can bring three key areas of tangible benefits. They’re all about a connected world. not small, slight rewards, but major sea-changes in the resource-power of your SME. They are: The SME office-on-the-move The fact is that the world has shifted on its axis - and • Increased productivity one of the consequences is that the data resource • Better service levels and communications tools that field operatives have • Better response times

November 2013

Workspace

Having mobile connectivity across the sales force, for example, means that during customer liaison, precious direct contact isn’t lost - there’s no chance of a competitor stealing the deal with a better offer, because the deal can be closed with the right information there and then. A proposal that might have taken three days to complete can now take five minutes. Customers appreciate this more agile approach and the SME starts to reap the rewards of being more nimble - a key factor that for so long was the preserve of the bigger, richer business. Leverage time-saving, data-rich benefits There’s another major benefit in terms of dealing with customers, too. Just as the mobile culture means that sales operatives have access to all the critical information they need to service customers on the spot, it’s also true that the richness of data that digitisation releases actually reduces the need for many one-to-one sales calls in the first place. This means, for example, that three customers can be contacted virtually and up-sold in a fraction of the time that one physical sales visit would require. Empowering staff – maximising management time Mobility also means team empowerment, because so many of the scenarios that would have required consultation with senior managers can be instantly analyzed, number-crunched and perfected onthe-go - using decision-matrices geared to delivering exactly the right balance between scale and margins. This is in turn sets senior managers free to focus on the activities that will bring high rewards and plan the business’ development - or focus on high-value customers requiring bespoke styles of contact. The equal availability and sharing of data also leads to a shift in emphasis away from personal productivity, to the wider productivity of the business itself - it’s less about maverick egos and more about a collaborative workforce. In turn, this shifts the role of HR, in that the SME now becomes more Values-based: will new staff be aligned with this teamoriented approach and work for the greater benefit of the business as a whole? The reality is that in the world where mobility has increased productivity and led to faster response-times, the entire

business is customer-driven - and this needs to be reflected in terms of the Best Practice criteria the business adopts and the culture and customer focus of the client-facing teams. Pulling together here can have transformative benefits that would have been inconceivable only two or three years ago.

Vikram Chadha, du’s Vice President, SME Marketing

Your staff and your business - a win-win What’s more, with the growth of ‘Bring Your Own Device’ (BOYD) culture, there’s no need for costly bulk purchases of dedicated mobiles, which just happen to be the only ones that work on the packages you prefer. The new digitisation can work across each and every platform - and you can protect data on staff mobiles with a variety of Mobile Device Management (MDM) solutions. These allow staff to switch between personal use and business data at will, while keeping them utterly separate - dividing the smartphone into two completely different grids.

Tele-Business – at last, the time has come! Business commentators and trendwatchers have been talking about the potential shift to Tele-Business and the new opportunities it brings for working outside the office - often from home for more than 20 years. But at last, it’s becoming a reality. In an ubiquitouslyconnected business culture, where you work is becoming less and less important. We have moved away from a PC-driven culture to a hand-held culture. Whereas before, you had to have a fixed induction at every point, now - especially with the advent of the Cloud - you can connect anywhere. This means that staff can be offered a full or partial ‘Tele-Commuting’ package as a key perk. Also, issues that have traditionally become thorny negotiating points - like maternity and sickness leave - simply don’t apply any more. Tele-Business can also be a powerful motivator for staff, especially if they have to make a difficult journey to the office every day, or the business premises are in a remote location. In these ways, mobility can make a healthy contribution not only in terms of the customer interface, but in adding to productivity and making a drastic difference to staff attrition rates. So - will your business ride the tide of the new mobility paradigm, becoming a place of true connectivity at the heart of rich data convergence? Or shall we see you back at the office? For an online version, please visit:

www.smeadvisor.com/2013/11/telebusiness/

November 2013

LEGAL

Franchising in the GCC:

taking (careful) advantage of the opportunity Franchising can be one of the most powerful ways to supercharge business growth â&#x20AC;&#x201C; and the rich retail potential of the GCC makes the franchise model especially attractive. Yet there can be pitfalls as well as profits and it pays to research and understand the regulatory and legislative frameworks from Day One. Here, Joycia Young, Partner, Clyde & Co., and Ben Smith, Associate, Clyde & Co., help prospective franchisors navigate the hazards.

he Middle East presents a tremendous opportunity for businesses looking to expand in a challenging global economic environment. The Global Intelligence Alliance reports that the Middle East and North Africa region has a combined gross domestic product of over USD 1.4 trillion and an expanding population of 315 million people. For many potential franchisors and franchisees, the affluent consumer base and (relatively) business-friendly environment in the member states of the GCC proves a particularly attractive destination in the Middle East region. Indeed, the franchising model finds a natural home in the retail, hospitality and food and beverage sectors. In the GCC, each of these sectors has experienced significant growth in recent years. Franchising continues to be a popular model for regional expansion for many good reasons; a franchisor can expand its business quickly into a growing economy while mitigating some of the commercial risks and significant capital investment that are often associated (and justifiably

so) with establishing a presence â&#x20AC;&#x153;on the groundâ&#x20AC;? directly. This update focuses on some of the legal and regulatory risks that potential franchisors should consider when looking to award a franchise (or multiple franchises) in the GCC. There are, of course, fundamental commercial factors that franchisors will need to consider; finding the right franchisee, ensuring that the business model can support expansion into the GCC market and understanding regional cultural sensitivities are a few of the many commercial factors that a franchisor will need to address. Structuring arrangements The corporate licensing regime in the GCC is relatively complex. Foreign ownership is often restricted and companies in the GCC are often subject to licensing restrictions which can limit the scope of their operations. The potential risk and exposure to franchisors that do not structure their arrangements in the GCC to take account of regionally specific issues can be significant. Many franchisors hoping to secure multi-outlet commitments will look to

identify a single franchisee which will be able to commit to a schedule of expansion throughout the GCC. In practice, and in light of corporate licensing restrictions, such arrangements have to be carefully structured to ensure regulatory compliance. Master franchise arrangements, pursuant to which a master franchisee will subfranchise rights in jurisdictions in which it cannot operate, are common. Such arrangements present franchisors with a number of issues, including how, and the extent to which, they exercise control on the appointment, operation and termination of sub-franchisees. These issues can be, and commonly are, addressed in the contractual arrangements entered into by franchisors, master franchisees and sub-franchisees. Legislation There are not, at present, specific franchise laws in force in any of the member states of the GCC (although draft franchise laws have been circulated in the past). There are, however, a number of laws applicable in each of the GCC member states that have a significant impact on franchise arrangements. Addressing the issues presented by these laws is often of such

and decrees may be relevant depending on the nature of the franchise being granted, the identity and corporate structure of the franchisee and the specific location(s) in which the franchisee is granted rights. Intellectual property For franchisors, trade marks and trade names are at the forefront of brand protection. Franchisors need to be acutely aware of the nuances associated with protecting and

Ben Smith

fundamental importance to franchisors that negotiations with franchisees can collapse if those franchisees will not accept certain franchisor requirements. Commercial agency legislation is in place in each of the GCC member states. While the nuances of the agency legislation applicable in each of the GCC member states differ, the principles of the legislation are broadly similar. In essence, a franchisee will often be considered as an agent for the purposes of the legislation. Commercial agency legislation in the GCC states provide agents with a number of statutory rights which often include, among other things, the right to an exclusive appointment and the right to receive compensation in the event that agreements with principals terminate or expire. The amount of that compensation can often be substantial. Many franchisors are not willing to accept the potential risks and liabilities that can arise under the various commercial agency laws in the GCC if certain criteria are satisfied by franchisees. As such, franchisors should consider carefully how they structure their arrangements to ensure that, where possible, risk and exposure to commercial agency legislation is managed appropriately and to the extent possible. In addition to commercial agency legislation, franchisors also need to be mindful and cognisant of the broader legislative environment in the GCC. Labour and company legislation will impact the granting and operation of a franchise in each of the GCC states. Tax legislation may be relevant in some of the GCC states. And a large number of other laws, regulations

Joycia Young

enforcing their brands in the GCC. While most of the member states of the GCC are party to key international treaties for the protection of IP, the enforcement of IP rights must be addressed at a national level. In their haste to secure a franchise and establish a foothold in the GCC, franchisors often allow franchisees to register trade marks and trade names in advance of the franchise documentation being agreed. While commercial expediency is the obvious driver in these circumstances, this practice poses serious risk, even in circumstances where franchise arrangements are subsequently formalised and appropriately documented. In many GCC states, trade marks cannot be assigned until they are registered and franchisors often struggle to wrest control of a registered trade name away from a franchisee, irrespective of whether that trade name is internationally known and associated with the franchisor. Franchisors considering multi-country franchise operations in the GCC are faced with a number of competing concerns which will affect their brand protection strategies. These include identifying key markets and

structuring arrangements such that the use of a brand by a franchisee will accrue to the franchisor. The costs associated with securing trade mark registrations in the GCC are among the highest in the world. As such, it is crucial for franchisors to develop an effective regional strategy for trade mark registration and brand protection at the outset of their expansion into the region. A well-defended IP portfolio is only as strong as its foundations and brand protection issues will directly impact on the ability of franchisors to properly capitalise on the opportunities presented in the GCC. Enforcement The effective enforcement of rights, judgments and awards poses a number of challenges in the GCC. As a result, franchisors should conduct rigorous legal, commercial and financial due diligence on prospective franchisees. Franchise agreements should be carefully drafted in an effort to ensure that choice of law provisions A prudent franchisor should be aware of, and understand, the legal and regulatory environment in the GCC when structuring and negotiating its arrangements with franchisees. Taking legal advice as early as possible in the franchising process will, on the basis of past experience, save a franchisor time and costs that may otherwise be incurred in renegotiating franchise agreements once signed, or settling disputes with franchisees. The opportunities for franchisors that structure arrangements with franchisees in the GCC carefully, appropriately and in the context of regionally specific requirements, are tremendous. Further information If you would like further information on any issue raised in this update please contact: Joycia Young, Partner E: joycia.young@clydeco.com Ben Smith, Associate E: ben.smith@clydeco.com Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility For an online version, please visit:

www.smeadvisor.com/2013/11/ franchising-in-the-gcc/

November 2013

INDUSTRY WATCH

In spotlight: Islamic finance The Kingdom of Saudi Arabia, the United Arab Emirates and Qatar – currently leaders in the Islamic banking markets in the Gulf region – will soon experience further growth and expansion. bin Nasser bin Khalifa Al-Thani, Prime Minister, State of Qatar, will provide a major platform for discussion of the direction of the Islamic financial sector, and the models for cooperation and competition that will help sustain it. Co-hosted by Qatar Central Bank, the Euromoney Qatar Conference 2013 will feature an interesting presentation on “Islamic Markets and Economic Growth”, presented by Dr. Khaled Al Fakih, Secretary General and Chief Executive Officer of The Accounting and Auditing

The balance sheet of Qatar’s Islamic banks are expected to be worth more than USD 100bn by 2017.

ising international demand for infrastructure and investment project financing is likely to stimulate growth in these three markets. A strong demand is expected from the government sector, in particular, which is increasingly trying to ensure that a proportion of large project financing is structured in compliance with Shariah law. As the fastest-growing of the three markets, the balance sheet of Qatar’s Islamic banks are expected to be worth more than USD 100bn by 2017, according to a recent report by global credit rating agency – Standard and Poor’s (S&P). The Euromoney Qatar 2013 Conference, which will be held under the patronage of His Excellency Abdullah

Organisation for Islamic Financial Institutions (AAOIFI). Qatar has one of the fastest-growing Islamic banking sectors in the world, driven by the demand for local credit to finance government infrastructure and investment projects. This in turn is having an impact on the assets of Qatar’s Islamic banks, increasing their share of the country’s banking system. The Islamic banks’ market share in domestic credit increased from 13 per cent in 2006, to 25 per cent at the end of 2012, according to the S&P report. Global interest in the Islamic financing sector was demonstrated in October 2013, when Britain announced that it would become the first non-Muslim country to sell a bond that can be bought by Islamic investors. Prime Minister David Cameron said that the UK Treasury is drawing up plans to issue a £200m Sukuk, a form of debt that complies with Islamic financial law. The new shariacompliant gilt will enable Britain to become the first non-Muslim country to tap the growing pool of Islamic investments, which is set to exceed USD one trillion by 2014. As a meeting point for international financial players and major decision-makers from the region, the Euromoney Qatar Conference will provide an ideal opportunity for both sides to learn more about expectations and predictions for the local, global and international markets.

Regional focus: Business in Qatar Dun & Bradstreet’s Business Optimism Index for Qatar reported that business optimism in the fourth quarter of 2013 is at the highest in nearly three years.

ponsored by the Qatar Financial Centre Authority (QFC Authority), the survey revealed that optimism across the Finance, Real Estate and Business Services sector has reached its highest level in the last three years. At a year on year growth of 15.4 per cent, the sector has been the fastest growing business sector in Qatar. The profitability expectations of this sector have also risen sharply from 21 points in Q4 2012 to 58 points in Q4 2013. One of the major highlights of the Index was that nearly 50 per cent of SMEs surveyed in the sector planned to hire in Q4 2013. Yousef M. Al-Jaida, Chief Strategic Development Officer, QFC Authority, said: “The sharp increase in optimism shows how strong and resilient the Qatar economy is. In particular, the Finance, Real Estate and Business Services sector is maturing rapidly and is a major force behind economic diversification, playing a leading role in supporting the country’s development.” The Index for the consolidated non-hydrocarbon sector was 53, up 14 points from Q3 2013 and around 15 points from Q4 2012 levels. The Index value in Q4 2013 is the highest recorded reading since Q1 2011, when it touched 61 points, showing that economic diversification in Qatar is gathering momentum.

Dr. Fred Moavenzadeh, President, Masdar Institute of Science and Technology

Overview of the survey: Hydrocarbon sector Optimism is at the highest level (29, up from 17 in Q4 2012 and 13 in Q3 2013) it has been in the last two years, supported by a positive outlook for sales volumes, profits and hiring. Manufacturing Optimism is at its highest (53, up from 33 in Q4 2012 and 35 in Q3 2013) for three years, driven by a very optimistic outlook for sales and demand, which is the highest among the non-hydrocarbon sectors.

Trade & Hospitality Optimism (52, up from 34 in Q4 2012 and 34 in Q3 2013) is close to the all-time high of 56 reached in Q1 2011, driven by strong expectations on sales, demand for new orders and in particular profitability, which is the highest amongst all sectors.

Construction Construction is at the most optimistic (53, up from 29 in Q4 2012 and 36 in Q3 2013) level it has been in the last three years, partly because of sharp rises in expectations for selling prices and profits and strongly supported by the sector’s expectations for hiring, which are the highest among the non-hydrocarbon sectors.

Transport & Communications Optimism is recovering (50, up from 45 in Q4 2012 and 43 in Q3 2013) on the basis of a strong outlook for profitability. The sector has the highest number of respondents (81 per cent), within the non-hydrocarbon group, which does not foresee any negative factors impacting business in Q4.

November 2013

INDUSTRY WATCH

Talent Management in the UAE Towers Watson and Oxford Economics revealed key highlights from their latest study – Talent 2021. The research reported that by 2021 the Middle East is expected to see above-average growth of over 13 per cent in the volume of talent demanded by businesses in the region. the number of university graduates continues to increase. Meanwhile, in North America and Europe, demand for talent will surpass supply, the study reported. By 2021, the Middle East is expected to see aboveaverage growth of over 13 per cent in the volume of talent demanded by businesses in the region. Despite this, the number of skilled workers being produced in this time is predicted to exceed demand by between 0.1 per cent and 0.6 per cent per year. This is in contrast to Western Europe, where despite modest growth of 3.5 per cent in the demand for talent by 2021, there is still estimated to be a talent deficit of between 0.4 per cent and 1.1 per cent per annum in each major economy providing an opportunity for highly educated workers from the Middle East to export their skills to other markets where demand is higher. The study further suggested that local and multinational companies in the Middle East need to address employee loyalty and engagement in order to prevent a potential ‘brain drain’ in the long term.

he study surveyed 352 HR executives from around the world and conducted in-depth interviews with leading multinational firms. It examined how rapid globalisation and transformation of business models in different industries will have an impact on the on workplace and employer needs in the future. The Middle East will produce a surplus of skilled workers in the next decade as technology advances and

Local and multinational companies in the Middle East need to address employee loyalty and engagement in order to prevent a potential ‘brain drain’ in the long term.

The research also shed light on the following areas: Business transformation requires new skills. A vast majority of companies are engaging in transformation initiatives to rethink their global strategies, business models and organisational approaches. This transformation also requires a repositioning of employee skill sets across all levels of seniority. New talent areas emerge. Digital knowledge, agile thinking, interpersonal and communication skills, and global operating capabilities will be talent areas experiencing high demand over the next five to 10 years. Companies will need to address the talent mismatch. In the developed world, where talent shortages in a number of managerial and technical fields are expected to persist, companies will be forced to think more explicitly about the trade-offs among outsourcing work, offshoring staff and retraining workers. Sources and expectations of talent are evolving. There will be an increased emphasis on working in several different countries throughout one’s career. How and where talent works is also shifting, including the increased frequency of alternate work schedules and work locations, including working virtually.

INDUSTRY WATCH

Treasury and finance TRENDS The institution for treasury and finance professionals – Association of Corporate Treasurers (ACT) is all set to hold its fourth Middle East Annual Conference from November 26 to 27, 2013 at the Ritz Carlton, DIFC. The Conference will focus on key issues facing treasurers in the region and provides an unrivalled opportunity for treasury, risk and finance professionals to come together for networking.

esearch has found that global Islamic Banking assets reached USD 1.1 trillion in 2012 compared to USD 826 billion in 2010. In the Gulf region alone, Islamic Banking assets are expected to grow to USD 990 billion by 2015 from USD 416 billion in 2010. In October, Dubai announced its strategy to become the global capital of the Islamic economy and as such, the attention of many finance professionals has turned away from conventional finance towards Islamic options. Discussions at the ACT Middle East Annual Conference will complement the ‘seven pillars’ identified as integral to establishing the Emirate as the centre of the Islamic economy, for example; the importance of establishing economy standards and ongoing education to facilitate growth. The conference will highlight primary topics of interest for treasury and finance professionals in the GCC including the importance of the treasury function in helping organisations embrace economic growth postdownturn, the meteoric rise of the Islamic Economy and the vital role treasury can play in capitalising on the potential of this opportunity. Furthermore, the forum will serve as a strong platform for the treasury community –both experienced professionals and current treasury students – and aims to attract over 400 delegates who will spark insightful

discussions through best practice presentations and interactive workshops. Matthew Hurn, ACT Middle East Chairman and Executive Director, Group Treasury for Mubadala Development Company, said: “The ACT is committed to the development and sharing of treasury, risk and corporate finance knowledge and expertise across the region. The phenomenal surge of activity within the Islamic economy presents organisations in the Middle East with a major opportunity to grow simultaneously. Therefore, it is vital that our treasury professionals continue to hone their knowledge of all aspects of the financial world so they may provide their companies with valuable advice. “As Chairman of ACT Middle East, I look forward to welcoming delegates to the 2013 Annual Conference. It has become a key event for our industry and a chance for those in the treasury profession to collaborate and learn from each other’s experiences for the benefit of the organisations we represent.” An integral part of the UK-headquartered ACT, the ACT Middle East’s Network is made up of over 3,600 members from a range of corporations, banks and financial institutions across the Gulf. For more information on the conference, please visit: www.actmiddleeast.org/annualconference.

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INDUSTRY WATCH

Addressing youth unemployment The Owners’ Forum Middle East 2013, held in Muscat, highlighted the pivotal role of the private sector in alleviating high rates of youth unemployment within the region.

During the Forum

peaking to an audience of family business owners and public leaders, Badr Jafar, Chief Executive Officer, Crescent Enterprises and Managing Director of the UAE’s Crescent Group, explained in his keynote address that youth unemployment in the Middle East currently stood at nearly 30 per cent, and in order to control this escalating figure, the region required to generate over 98 million jobs in the next 10 years, according to World Bank estimates. He further stated that a shift in responsibility is needed from the government to the private sector in order to create these mass jobs and the key to achieving this in the long-term is through the development and structured support of entrepreneurship, and in-turn the creation of SMEs. “With the alarming amount of young people lacking meaningful jobs, the Arab World faces the very real risk of losing an entire generation to unemployment,” commented Jafar. “While the Government is an extremely important part of any solution, we cannot rely entirely on it to solve our socio-economic challenges, which is why we must generate a private sector-led and government-enabled response to the problem,

with entrepreneurship at its core. After all, the private sector possesses the skills, the resources, the knowledge, the capital and the networks to create long-term solutions.” Badr Jafar continued: “Investing in entrepreneurship is the key to tackling youth joblessness, which is why it is imperative for us to work together as family businesses in the region which are collectively responsible for over 85 per cent of non-oil GDP of the 22 Arab countries, to develop and support a cohesive ecosystem that breeds, encourages and nurtures a generation of entrepreneurs who create relevant, long-term solutions not just for the present need, but for future generations to come. This, of course, includes establishing strong education systems that provide the skills required to thrive in a business environment, more flexible access to capital, and advocacy and mentorship programmes such as those run by non-profits groups like ‘Education for employment’.” Established in 2008 in Germany, the Owners’ Forum connects premier family businesses from around the world to the most interesting regions of growth. Each year the organisation holds high-level gatherings of family business owners, and other affiliated stakeholders, as well as foremost scholars from leading universities who moderate discussions and present research findings on pressing issues.

Investing in entrepreneurship is the key to tackling youth joblessness.

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October 2013

TECHNOLOGY FOR BUSINESS

DIC and Microsoft Gulf’s new partnership

benefit greatly from the partnership and from the innovative technology provided by BizSpark.” Samer Abu-Ltaif, Regional General Manager at Microsoft Gulf said, “Microsoft Gulf is committed to taking a holistic approach to helping startups in the UAE and region achieve their full potential, and we believe this partnership with in5 will fuel this. Through BizSpark Software Microsoft has already empowered over 160 startups in the region and we will continue to do so through this joint approach with in5. I would like to take this opportunity to thank Dubai Internet

A Memorandum of Understanding signed between Dubai Internet City and Microsoft Gulf opens a new door of opportunity for tech startups and entrepreneurs in the region. Under the partnership, Microsoft will enrol in5 – the innovation hub pioneered by Dubai Internet City – on to its Startups Network Partner Programme which will allow in5’s IT oriented members to benefit from free software and services available through Microsoft’s BizSpark initiative. Majed Al Suwaidi, Managing Director, Dubai

Internet City and Dubai Outsource Zone, said: “Dubai Internet City and Microsoft’s partnership will support the continuing development of the thriving ICT industry and entrepreneurship sector in the UAE. The agreement highlights DIC’s support for our business partners as well as for startups and entrepreneurs, and I am confident that in5 companies will

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10/27/13

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ACCOUNTING FOR EXCELLENCE THE MIDDLE EAST ACCOUNTANCY AND FINANCE EXCELLENCE AWARDS WEDNESDAY 11 DECEMBER 2013 AT THE RITZ CARLTON, ABU DHABI once again, the very best talent in the world of accountancy and finance will be celebrated by icAew at a stellar awards ceremony. icAew is a professional membership organisation supporting over 140,000 chartered accountants around the world. And, on wednesday 11 december 2013, at the ritz carlton in Abu dhabi, weâ&#x20AC;&#x2122;ll be recognising excellence in twelve categories featuring: cfo of the year, corporate finance deal of the year and the internal Audit excellence Award with an impressive line up of speakers, special guests and entertainment, it all adds up to a truly memorable evening. to submit a nomination or for more information, visit icaew.ae/awards nominations close on 1 november 2013

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TECHNOLOGY FOR BUSINESS

Create a mobile app in a few easy steps! Mobibus, an innovation-led mobile technology startup, has launched the very first ‘Do-It-Yourself’ mobile app maker in the Middle East offering SMEs, entrepreneurs and individuals a new gateway to procure efficient mobile applications by breaking the barriers of cost, time and technological complexity.

ounded by Pierre Azzam, Mohammed Johmani and Hussam Abu Zaalan, Mobibus empowers users to create, manage and publish their own professional looking iOS and

Android apps on smartphones and tablets, without the need for any technical or programming knowledge. “The very concept of ‘Do-ItYourself’ is going to be a gamechanger for the region,” said Azzam. “Numerous studies have established the growing smartphone penetration in the Middle East and our increasing reliance on mobile technology in both our professional and personal lives.” Pricing for this new technology is moderate, transparent and flexible with either an annual (USD 125 per month) or quarterly (USD 150

New real estate portal – eMart Stakeholders across the real estate industry can now benefit from Dubai Land Department’s new online portal - eMart. The platform serves as a simple and easy information exchange centre, and enables users to auction, sell and rent properties. More importantly, the portal guarantees transparency and credibility in all data. That’s not all. eMart enjoys strong support of the Government of Dubai and the online payment gateway - Noqodi. Furthermore, the initiative aims to facilitate search operations of existing investors in Dubai and attract potential

per month) package fee, and the option of selecting add-ons to enhance user experience. Abu Zaalan further explained the users’ experience and steps of creating apps through Mobibus app maker. The user-friendly platform, with dual English and Arabic interface, allows companies or individuals to create a customised mobile app to suit their business or personal needs in just four easy steps: Step one: Register Registration is free via www.mobibus.com. Upon registration, users will receive a username and password via e-mail, which provides access to the app maker platform. Step two: Design Users can now start building a customised mobile app by selecting layouts and colours from a suite of pre-defined design templates. To further customise individual elements within the app, users can upload images, logos and

investors from all across the world. By creating global access to Dubai’s real estate market, eMart will also be advantageous to the overall economic well-being of the Emirate. His Excellency Sultan Butti Bin Mejren, Director General of Dubai Land Department, said: “Today, Dubai Land Department has accomplished yet another milestone in pushing the real estate market forward towards new heights the benefits of which this city will sow in the near future and the longer term. We now have a system that, with complete transparency and full credibility gives brokers, tenants, and owners full operational efficiency and reliability in a way that we have not had before, a way that will help boost the local real estate market significantly.” He added: “The department is now working to develop a comprehensive action plan for the establishment of a real estate climate that is safe and stable and

assets, select fonts and specific colours. Step three: Manage The next step is to start uploading content. Mobibus’ proprietary content management system is unique in that it allows users to upload content in as many languages as they wish, delivering a single mobile app in multiple languages. A ‘default’ language needs to be selected, however once the app is downloaded the language settings are then interchangeable. Users can continuously update content online, with no additional charges or costs. Step four: Preview and publish By downloading the Mobibus ‘mobilizer’ from the App Store or Google Play, users are able to preview the app in real time as they build, on their very own smartphones. There is also a 14-day trial period available before they are required to publish and pay for it.

contributes to achieving the objectives of all parties involved in the sector, contributing to the attraction of more foreign investment, thus transforming Dubai into a global real estate destination through the provision of a full range of facilities and services that emphasise transparency and ensure the rights of all parties, working towards the Government of Dubai’s transition into a smart government.” Sultan Al Akraf, Director of First Registration at Dubai Land Department, added that the launch of operations through eMart: “will enhance the attractiveness of real estate investment in Dubai and will have a major role in attracting more investments to the sector because transparency is the most prominent factor in any investment sector, and it is the foundation upon which eMart is built.” For more information, please visit: emart.gov.ae.

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169764

TECHNOLOGY FOR BUSINESS

Cloud Campus: SME learning resource du’s SME customers can now enjoy access to Cloud Campus – the first social online learning platform which embodies the Smart Learning approach.

his came after Osman Sultan, CEO, du; Dr. Mansoor Al Awar, Chancellor, Hamdan bin Mohammed e-University; and Dr. Milad Sebaaly, Managing Director of Global Learning, signed a multi-year partnership. Empowered by Global Learning, Cloud Campus is an initiative by Hamdan bin Mohammed e-University, the first accredited e-university in the UAE, which allows customers subscribed to du’s SME plans, to access a variety of sessions through their personal social media accounts on Facebook, LinkedIn

New website launch: Triperna The launch of Triperna – a new e-commerce platform for travel – promises to provide customers with a single source of affordable and exciting holiday packages. Triperna is pioneered by Tiger Global Management – a majority stakeholder in Cobone – and offers a raft of comprehensive features to it users. These include instant confirmation, value-added services, ‘best-package price’

and Google+. Courses will include 180 professional business-boosting content, such as leadership, communications, and entrepreneurship; over 600 English language lessons, and over 1,600 interactive school lessons in the fields of math, science and IT for children of employees in Grades one to 12. As an added academic value, all Cloud Campus lessons are certified and supported by a global community of tutors and experts available around the clock to support learners. “It is every organisation’s goal to be able to provide training and learning that will improve employees’ skills, so that they are ready for whatever the future may hold,” said Sultan. “However, this can come at a sizeable cost to businesses – especially for SMEs, where we understand that every dirham must be put to the best use possible. SMEs are the engine driving the country’s economy, and we know that they must be nurtured and trained, in order to be able to best adapt to, and benefit from, the ever-changing dynamics of our business environment. We are therefore proud to partner with Hamdan bin Mohammed

guarantee, and online as well as offline payment options. The website currently offers top deals to popular destinations such as Anantara Dubai, the Palm Resort and Spa, Ramada Plaza JBR, and so on. Furthermore, the site will offer exciting packages for local and international travel that covers excursions, hotel stay airline tickets, airport transfers, and more. Customers will be able to choose destinations and packages by regions or themes. “The travel market in the Middle East and North Africa is estimated to be at USD 35 billion with the UAE and KSA being the key growth markets in the region. As the e-commerce market in the region matures, we foresee the

e-University and Global Learning, to be able to offer SMEs access to essential training at an affordable cost.” “In line with the UAE leaderships’ vision of encouraging and supporting SMEs to achieve their full potential, we are pleased to have signed this partnership agreement today with du,” said Dr. Al Awar. “We see du as an innovative and socially responsible company, committed to offering superior-value propositions to SMEs which will now have access to our accredited online courses to be able to provide themselves, their employees, and their families with learning for life that will boost their potential to succeed in the highly competitive business world.” “With Cloud Campus, du is offering SMEs with a flexible and affordable learning experience that offers world class content with local academic support to employees and their families, through a mobile social platform,” said Dr. Sebaaly. For a minimal monthly fee that will be billed directly to their corporate account with du, customers can subscribe online via social media accounts to enrol employees subscribed to du’s SME plans.

future of the travel industry to be online,” said Paul Kenny, Cofounder and CEO of Triperna. “The success of Cobone Destinations inspired us to establish Triperna. The new site combines our experience and expertise in e-commerce with our passion for travel. With Triperna, we aspire to bring to life dream vacations for customers from across the Middle East,” Kenny added. Cobone Destinations was established in 2011, and since has been steadily increasing

in popularity. Currently, Cobone Destinations represents a large percentage of Cobone’s overall business in the region and is one of the fastest growing categories for the company. Cobone Destinations will now be rebranded to Triperna to provide customers with a single source of affordable and exciting holiday packages. According to Google’s “Traveller’s Road to Decision” survey, the internet is the number one source for trip planning in the UAE and KSA for both business and leisure. Additionally, 69 per cent of travellers have used smartphones and tablets when planning a trip. To experience the new site or for additional details, please visit: triperna.com.

IT’S MORE THAN THE NUMBERS. EY’s Reporting magazine addresses the reporting and governance issues that international businesses face as they explain their performance story. Companies are striving for growth, assessing new risks and working to maintain the confidence of stakeholders through their reporting. To read more, visit www.ey.com/ reportingmagazine.

THE NEXT LEVEL

Say hello to your new ‘first screen’ –

the smartphone!

Here’s a quick trivia question for you – what are the two buzz words that have revolutionised the day to day operations of a small business? The simple answer is ‘mobile technology’. You don’t need to have the technological brilliance of Bill Gates and his ilk to recognise that mobile technology is quickly taking over everything we do – business, travel, leisure, education; the list goes on. Here, in a candid chat with Rushika Bhatia of SME Advisor, Arshad Zaheer, Chief Executive Officer at Crayons Communications, offers excellent advice on the use of mobile applications to catalyse your SME’s growth, and suggests it’s about time you jump onto the mobility bandwagon!

“You can’t sit on the lid of progress. If you do, you will be blown to pieces.” – Henry J. Kaiser

s a small business owner, your first reaction to the hullabaloo surrounding mobile technology is – what can it do for me? The real question, however, is what can’t it do for you? Mobile technology presents a vast opportunity, especially for SMEs and entrepreneurs, as it offers robust business connectivity, extended reach with mobile applications, and wide (possibly international) exposure through mobile marketing. Arshad Zaheer, CEO, Crayons Communications, explains: “Digital is for everyone. But, it has a special appeal for small businesses as they have tighter

budgets which means they need to increasingly adopt ‘bang for your buck’ strategies – something that the digital platform can do for them. “Digital has become the norm today and is a requisite for every business. And, businesses have to realise that this is where the consumers are. A good way of measuring this shift is to pause and look at the amount of time spent on each medium. We are spending more time on our mobile devices than ever before and it has undisputedly become our first screen, followed by the computer which is now our second screen, the television – our third screen, and so on.” Another strong indication of this shift to mobile is Ericsson’s latest prediction stating global mobile subscriptions will reach to a staggering amount of 9.3

billion in 2019. As an SME owner, what does this mean for you? The answer is simple. It means that there’s an increasing number of people you can reach out to. An easy way of doing so, and one that we would like to highlight here, is working with a mobile application… First things first. Is a mobile application even suitable for your business? Arshad says, “The first step is to ask yourself – how relevant is this to my business? Remember that the word ‘relevance’ is crucial in the digital world. There are multiple digital platforms available to businesses and the challenge lies in identifying one that suits your business best. Several clients that we work with, at Crayons Communications, aren’t across all platforms and we encourage them to create a presence only on online media that is most relevant and beneficial to their business. The fundamental question to ask yourself is – what am I looking to achieve with this mobile application? For instance, if you are in the manufacturing industry, a client facing interface app might not work for your business. Instead, you should consider an app for internal purposes like backward integration, client management, and scheduling meetings within your companies – something that helps you stay connected with your daily operations while you are out and about.” “There are variety of applications available today like customer interaction apps finance apps or even purely gaming apps. It’s important to make the right choice when creating an app for your business. An agency like us can help you with this process. We look at your product and analyse it based on industry norms and category – not to say that we never think out of the box – but by large we stick to the most intuitive option. We also prefer to have a straightforward approach with clients and give them honest opinion – so if their business isn’t at the right stage to create a mobile application, we directly tell them that.” In a similar vein, Karen Tegan Padir explains in an online article on wired.com, “Avoid creating an app for the sake of it. Spend time to identify a need within the business or industry that a mobile app can help solve. Think about how the app can shake up the way things are done to deliver better results.”

Note: an important question to also consider is – what are the legal implications of an app? Is it benchmarked against a recognised quality standard – ISO/DIN? – or backed by a certified trade body? Why should your customers download your app? Arshad says, “The next question I usually ask the client as well as my team is – would you download this app? If yes, why? So let’s take the example of an app for a local clinic – if this app offers merely basic information about the clinic like location, services, timings, etc., would I download this? Not really! But, if the app is going to give me something more attractive like pill reminder services, or update me with the latest developments in the medicine industry, or any other similar service – I would happily download it. “Your company’s app should appeal to the customer and actually give them some tangible service. If not, your user might download the app but will eventually delete it within 30 days. A great example, in this regard, is the DEWA app – I’ve personally downloaded this app because I am constantly on the go and don’t want to risk forgetting my monthly utilities payment. The app not only gives me a timely reminder but also allows me to quickly pay off my bill at my convenience through my mobile device.” And, this approach isn’t just limited to apps for your customers, it also applies to apps within your workspace. In the same article on wired.com, Karen further explains, “Our mobile devices are always within reach and highly personal. When developing an enterprise mobile app, make sure it delivers something that truly empowers them. Instead of just maintaining the status quo but in mobile form, a well thought-out app can enable users to be more productive, make their jobs easier and even revolutionise a workforce. And this can just be the lowhanging fruit; a small change that makes a process smoother or shaves a few minutes off a task can make all the difference.” Getting started… Once you’ve made up your mind to go down the mobile application route, the next step is to start with the basics. This would mean ensuring that your business

has a strong existing online presence to build on. Having a basic website and some interaction on social media enables your business to enter the mobile arena with a strong footing. Once your business ticks these two boxes, you now have to determine the kind of content you would like to offer through your app – this is of course in line with the purpose of the app as mentioned in the previous point. Colleen Jones explains the implementation of something called ‘sticky content’ in her article on content-science.com, “Sticky content is not content that people use once and then forget. It is content people want over and over again. No matter how simple, well-designed, and fun an app is, if it doesn’t have some value to be reaped over time, people will eventually abandon it. Instagram, for example, has a very basic function: To create, enhance, and share photos. Yet people continue to use it daily.

Why are businesses adopting mobility?

63% Cost savings

51%

Productivity concerns

50%

Employee requests/ needs

43% Competition

Source: www.xcubelabs.com/enterprise-mobile-apps.php

November 2013

THE NEXT LEVEL

to collect. There are also dropout rates to consider – a lot of people download the app and dropout. So it becomes important to understand why these people dropped out. The most important aspect to increase ROI on your app is to have regular updates, because you can’t let the user get bored with the app. It’s critical to constantly update your app – change the app colours and themes because users don’t want an unnecessary app taking up space on their phone,” explains Arshad. He adds: “A classic way to measure ROI is couponing – give your customers a barcode which they can scan when they make their next purchase and they can redeem a 20 per cent discount and so on. That’s just one side of couponing, the added benefit is that the users will then tell their friends to download the app in order to avail the offer.”

Arshad Zaheer, CEO, Crayons Communications

Besides being used on a frequent basis, content is sticky when it keeps users on an app or site for extended periods of time.” Arshad supports this with a strong example, “A global water company that gives you a reminder to drink water – the company is cleverly reinforcing itself in the minds of the customer by sending out constant push notifications to the consumer. It’s very important your content provides a service. A great quality of a strong app is also its ability to collect consumer data smartly – so your app needs to convince the customer to provide the data in exchange for the service you are providing them with.”

STATS Branded apps have increased by an astounding

263%

between March, 2010 and September, 2011.

Source: www.xcubelabs.com/enterprise-mobile-apps.php

He continues, “Another recent example is that of a baker, she approached our agency looking for new innovative ideas to promote her brand – initially we considered Instagram but then we thought what about a mobile application? The first thing that comes to your mind is an application which displays her cake designs and innovative themes. But, then the question is how interesting is this for the consumer? It’s not. After some brainstorming, we came up with the idea of a fantastic mobile application – a special occasion reminder app which sends you a notification everytime there’s an upcoming birthday, graduation or anniversary. And, each time the reminder pops up, it comes along with an image of her cake - and suggests that you get one customised for the occasion. It’s also backward-integrated so that if you are indeed looking to order a cake – you can immediately do so using the application.” Measuring ROI You’ve got your app up and running, and now it’s time to calculate the returns. “The first tangible way to measure the ROI would be the number of downloads. After this, next is the user interaction – so how many users are actually interacting through the app – a good way to do this by analysing the amount of customer data you are able

What’s the cost? Finally, as an SME owner, keeping costs to a bare minimum is top priority. The good news is that mobile applications are a very effective marketing tool. Arshad says, “It starts anywhere from as little as US$ 1500 and it can go upwards depending on how inclusive you want your app to be. A retailer could include geo-targeting in their app, so every time you pass the retailer in the mall, it reminds you to enter the store – that’s a very inclusive, thus expensive, app.” Final thoughts… Explaining the driving factors behind the rising popularity and success of mobile apps, Arshad adds: “There’s an inherent need for human beings to connect – we need to be informed. Dubai is a melting pot of cultures and everyone wants to connect with their family back home, especially through social media applications, easily available on their phone. Lastly, the telecommunications giants in the region are doing a great job of encouraging this shift by making smartphones very affordable. So, I urge all businesses to begin thinking about their mobile applications and to get ahead of the curve!” “All in all, the fantastic thing about mobile applications is that nothing is impossible – virtually anything can be achieved through it if done the right way!” concludes Arshad. Time to let go of the lid? For an online version, please visit: