SME Advisor Middle East - January 2014 by SME Advisor Middle East

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Ayman El Dessouky speaks how Etisalat empowers SMEs

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EDITORIAL COMMITTEE

Welcome to our Editorial Committee SME Advisor is delighted to

announce that during 2014 we will be working with some of the leading names in the SME space - key figures who have kindly agreed to take part in our new Editorial Committee. This panel will play a vital role in channeling the feature content of our magazine and ensuring that we are more topical than ever analyzing and discussing the ‘real world’ issues of tangible value to our readership and bringing industry-leading expertise across the publication and its raft of prestigious related events. We are delighted to introduce the following SME personalities:

Alexandar Mathew Williams Alexandar Mathew Williams is presently the Director of Strategy and Policy at Dubai SME, a government agency of the Department of Economic Development (DED) tasked with the development of Entrepreneurship and Small & Medium Enterprises (SMEs) in Dubai. He has logged more than 20 years’ experience in public policy and strategic programme development focusing on micro-economic, business and SME development. Anas Halabi Anas is Managing Partner at Prediam Partners, an independent investment advisory firm, focused on real estate, hospitality and related ventures that he cofounded. Prediam has successfully assisted in setting up, structuring and financing numerous regional and international projects and startups, including an innovative application for Muslim travelers, an aggregator website for tourists in the UAE, an income producing hospitality portfolio in Dubai and a boutique hotel development in Beirut.

Mona Tavassoli With over a decade of work experience, Mona Tavassoli is the Founder of Mom Souq (www.momsouq.com), an online community and bazaar for mothers residing in the UAE, through which mothers can network with each other, share advice and their experiences. As an extension, with the aim of continually providing support to working mothers in this region, Mona launched a new platform - Mompreneurs Middle East (www.mompreneurs.me). Laudy Lahdo Laudy Lahdo is currently the General Manager of Servcorp, an Australianbased global provider of office solutions, in the Middle East region. She joined the company in 2003, after her move from Australia to the United Arab Emirates and as General Manager, has helped grow the company from just one office in Dubai’s Emirates Towers to 11 branches spread across the UAE, Bahrain, Qatar, Kuwait, Lebanon and Turkey. Servcorp provides both small and medium sized enterprises (SMEs), as well as multinationals, with the best locations, facilities, and technology and business support services in over 140 locations worldwide. Simon Hodges Simon has more than 30 years of experience working for international companies at Board level. He has spent over 10 years in the UAE and was previously Corporate Director of Administration of The Jumeirah Group, Senior Executive Officer of Dubai Holding Insurance Services LLC and Head of Governance for ADNEC. He also completed a two-year assignment as head of the health funding project for the Government of Dubai. Since 2011 he has been mentoring business owners from Dubai to enable them to create and then manage effective organisations that support business growth.

Hazel Jackson Hazel has built an impressive reputation and successful multimillion dollar business – biz-group FZ LLC- during the past 19 years based in Dubai. Nearly two decades ago, and with just US$700 in her pocket, Hazel founded biz-group, which she has developed from a small training company into an organisation of 42 professionals servicing the Middle East’s corporate training, team building and business strategy needs. Passionate about impacting performance, biz-group’s success is a testament to Hazel’s entrepreneurial spirit. Kay Braganza A seasoned public relations professional and successful entrepreneur, with five years of experience in the industry and an extremely commendable portfolio, Kay Braganza decided to pursue her love PR and start up her own agency four years ago. Here, she aims to cater to the demand of a flexible and a truly bespoke PR service, which strives to make a lasting difference to companies of all sizes. A recognized and respected expert in the PR world, her proficiency in the field speaks for itself, after working in it for nine years and having dealt with reputed clients such as Sony Gulf, Nokia, Mom Souq, and Clarion Events amongst many others. Nadine Halabi Nadine Halabi has been the Coordinator of the Dubai Business Women Council since August 2011. Since then, she has been managing the overall operations of the exclusive Council, coordinating the high profile board members, its stakeholders and members in line with the values, visions and missions as set out by its President, Mrs. Raja Al Gurg. Prior to her joining the DBWC, she worked at an events management and PR agency in Bahrain, where she flourished in a senior role as Deputy General Manager.

January 2013

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Seize the opportunity

t’s perfectly understandable that at this time of year, I’m asked what I see as the key imperatives for SMEs - what are the issues that are going to be the most important ‘boiling points’ for SMEs in 2014? I see two areas as having overriding significance.

Chairman

Dominic De Sousa CEO

Nadeem Hood COO

Gina O’Hara Partners

Vijaya Cherian, Director of Editorial Raz Islam, Publishing Director Richard Judd, Managing Director Chris Stevenson, Assistant Director of Sales Darine Williams, Publishing Director Group Director of Sales Carol Owen Group Director of Editorial Paul Godfrey Chief Strategy Officer Dave Reeder Group Managing Editor Melanie Mingas 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 Media Sales Executive

Emma Hughes emma.hughes@cpimediagroup.com +971 4 440 9120 Event Sponsorship Manager

Gill Fairclough gill.fairclough@cpimediagroup.com +971 4 440 9148 Production & Design James P Tharian Database & Circulation Manager Rajeesh M Head of Design Fahed Sabbagh Designer Froilan A. Cosgafa IV Photographers Jay Colina Abdul Kader Pattambi Digital Services Manager

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Firstly, the business agenda resulting from winning Expo 2020. What are the real opportunities that it will bring and how can SMEs start to avail themselves of what’s on offer? Now, this will take a good deal of smart thinking, because the immediate thoughts will of course relate to aspects such as infrastructure creation (roads, rail, utilities provision, etc.) and already, many of the larger names are poised to submit their offers. Yet there are actually thousands of opportunities for SMEs to benefit from - indeed, they’re virtually endless. For example, if you’re a CADD design consultancy, look at the fantastic opportunities for supplying your packages to architectural practices and engineering firms. If you’re a retailer whose financial template has each branch working as a separate costcentre, what about sites at stations, tram links and pedestrianized areas? If you’re a sustainability specialist, remember that a major factor in the Expo win was the fact that this will be first-ever Carbon Neutral event of its kind, so what about openings to consult on solar panelling, or for regenerative braking on the buggies ferrying people from pavilion to pavilion? As with any opportunity, the myriad of openings presented by Expo 20/20 call out for business ideas that show that special mix of comprehensive innovation and financial practicality. Will yours be one of them? The second area is that of proper, effective risk management. While of course the pages of SME Advisor have been full of calls for SMEs to implement solid risk management solutions, it is of course paramount that when SMEs do speak to the experts, they get an effective safety net of risk management provisions. An alarming survey just published by Deloitte - ‘Explaining Strategic Risks’ - shows that no less than 49 per cent of EMEI businesses believe that the risk management products they have been sold are actually inadequate! As SMEs enter increasingly competitive times, become ever-more-sophisticated entities and place more importance on the digital revolution, risk management has never been so important. Yet now we know there is a double challenge - firstly, the old concern that we need to awaken the sector to the value of good risk management in the first place; and secondly, that SMEs will now need to ensure that what they’re getting is fully commensurate with their needs, and provided by credible, qualified operators. One thing is for sure: the SME space needs risk management protocols more than ever, because they are the road to better health & safety, better procurement of finance and better efficiency and cost-effectiveness. In 2014, the risk management challenge is tougher and steeper than ever. Enjoy this issue of SME Advisor!

Paul Godfrey Senior Editor

PO Box 13700, Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 Printed by Al Ghurair Printing & Publishing LLC © Copyright 2014 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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January 2014

Issue 98

January 2014

CONTENTS

39 PARTNER IN SUCCESS Ayman El Dessouky speaks how Etisalat empowers SMEs

EditorIAL COMMITTEE 03 SME personalities bringing industry-leading expertise across the publication and its raft of prestigious events. Editor’s note 05 Paul Godfrey on why 2014 is the right time for SMEs to ‘seize the opportunity’. SHOPTALK 10 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.

PROPERTY INSURANCE 22

Getting the basics right – property insurance. Why property insurance is so vital and how it works.

CONTENTS Movers & Shakers 26

The quest for innovation. Dr. Mark Batey from Manchester Business School on why innovation is at the core of management DNA.

Business Innovation 32 Innovate to lead – a power dialogue for SMEs. Manchester Business School’s round table discussed the role of creative innovation in leadership. 36

Your roadmap for 2014. Follow these 10 steps and lay the building blocks of success in the New Year.

Your partner in success. We speak to the region’s market leader, Etisalat, and explore its raft of tailored and innovative options.

Getting Finance 48

Credit – do you trust you will be paid? Andy Yiacoumi, Partner, Credit Management Institute Middle East FZ LLC, on how SMEs should approach credit.

Workspace 52 As you like it. Servcorp, the world leader in serviced office provision, on the key role that a serviced office can play in giving your business competitive edge 56 60

Your starter for 10. Top sales and marketing tips that are practical, easy to implement and highly affordable.

Security for startups and small businesses – Part of the plan, not an after- thought. Kaspersky experts explain key steps to secure your business from the dangers of cybercrime.

Legal 64 The New ADCCAC Procedural Regulations: a new dawn for arbitration in Abu Dhabi? Industry watch 66 UAE stock market trends. 67

Industry insight: mining companies.

Top concern – Reputation risk.

Smartworld’s ‘BizPark’ offerings.

Have you planned your retirement?

In review: Cyber security in 2013.

TECHNOLOGY FOR BUSINESS 74 IT trends and tools that are reshaping business in the region. The next level… 80 Lessons for good Corporate Governance in 2014. John Merrigan, Partner, Tamayyaz, on why it pays to be prepared.

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SHOPTALK

UAE

DED’s new licensing e-service

spiring entrepreneurs can now get their licences issued online through DED’s new e-service. This feature proves to be a significant value addition for business owners and investors as it helps them save valuable time and effort. DED has been building a comprehensive e-services portfolio in addition to services offered over the counter across its network of branch offices and customer service agent locations in various parts of Dubai. An increasing number of BRL services are also accessible as smart phone applications (Apps) now.

Ahmed Ibrahim, Director of Business Registration & Licensing (BRL) in DED

“DED is committed to provide customers with quick and easy access to government services in line with the ‘Smart City’

initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler

Dubai SME supports launch of new eatery Executive Officer of Dubai SME, at Dubai Festival City. “At Dubai SME, we encourage entrepreneurs and startups to acquire global competencies, and franchisees are a good opportunity for them to prove their capabilities The first-ever Yummy Waffles Café in the UAE was opened by Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME, at Dubai Festival City while working with the world’s best-known brands. We are delighted Dubai SME supported the recent launch that our members are also seizing the of Yummy Waffles Café, a confectionery opportunity to build on the varied brand from Belgium. The first-ever food choices of the expanding Dubai Yummy Waffles Café in the UAE was community,” said Al Janahi. opened by Abdul Baset Al Janahi, Chief

of Dubai,” said Ahmed Ibrahim, Director of Business Registration & Licensing (BRL) in DED. Ibrahim added that businessmen and investors will find it easier to complete their DED transactions from the comfort of their office or home using their registered DED account with the new feature added on the DED website. “An additional attraction of the new feature is that customers can get their licences issued even when they are out of the country,” he said. “Our focus is on progressively bringing all BRL services on to the e-services platform. Such improvements in service efficiencies are part of the overall strategy of Dubai and essential to demonstrating the ease of doing business and competitiveness, which Dubai emphasises as its key advantages as a business destination,” said Ibrahim.

Abdul Salam Hammadi, Chairman of Yummy Waffles Café, thanked Dubai SME for helping with bringing the brand to Dubai. “We believe our initiative will serve as an inspiration for the entrepreneurial community and add a new ‘flavour’ to Dubai’s rich and varied mix of eateries. Entrepreneurs in Dubai are growing bolder and venturing into new partnerships with a comprehensive support system extended by the government and institutions like Dubai SME.” Yummy Waffles Café is part of the So Good Company Franchise, known globally as a quality producer of Waffle Dough. Besides Belgium and the rest of Europe, the brand is also present in North America, South Africa, Turkey, Hong Kong and mainland China. Along with catering to the international audience, the Café in Dubai will also offer additional Arabian flavours.

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January 2014

SHOPTALK

Dubai Chamber’s CSR efforts

he Dubai Chamber of Commerce and Industry received a high profile delegation from the Oman Chamber of Commerce and Industry to exchange expertise, knowledge and best practices in the areas of human resources and corporate social responsibility. Speaking to an audience of Oman business leaders, Atiq Juma Nasib, Senior Director, Commercial Services Sector, Dubai Chamber, highlighted Dubai Chamber’s efforts in the area of corporate social responsibility. He pointed out that these practices are in line with the Dubai Government’s directives of creating a better society based on excellence and a sense of responsibility towards the environment. He further stated that the Chamber’s Centre

Dubai Chamber welcomes the Omani delegation

for Responsible Business has been working hard to promote responsible business in the UAE. The Centre not only assists Dubai Chamber members to apply responsible business practices that enhance performance and competitiveness but also offers a variety of educational, professional training and consulting services that are designed to build individual companies’

capacity to implement broad CSR programmes in line with the Chamber’s initiative. He also informed the delegates about the number of business councils and business groups numbering 43 and 27 respectively and operating under the umbrella of Dubai Chamber and how the Chamber is playing a pivotal role in serving as a conduit between the private and

public sectors while putting across the issues faced by businesses to the concerned government authorities. At the conclusion of the meeting, the visiting delegation was shown the LEED (Leadership in Energy and Environmental Design) trophy placed at the Chamber headquarter which is the Arab world’s first existing and most environmentally-friendly green building.

DED streamlines business registration

In an effort to streamline its business registration and licensing services, the Department of Economic Development (DED) recently added descriptions for 2,000 business activities permitted in Dubai.

DED had completed adding descriptions for 50 per cent of the permitted activities by the first half of 2013 and 1,000 more activities were added by December 2013. Each licence will now include the licence type (whether commercial, professional or industrial) and a group of activities permitted under that licence. This simplifies the process and helps investors identify the activities legally permitted under various commercial, industrial and professional licences in Dubai. “Licence holders will now have clarity on what they can or cannot do under their licence. Besides avoiding confusion, investors can avoid

penalties and maintain better focus on their core activities with the licensed activities clearly listed,” commented Ahmed Ibrahim, Director of Business Registration and Licensing (BRL) in DED. “DED is proud to have accomplished this project, which will enhance ease of doing business and competitiveness in Dubai. Clear and transparent procedures and systems are essential to attracting investors and facilitating businesses in line with the steady improvements Dubai has won in the global indices on ease of doing business,” added Ibrahim.

New initiative: ‘Smart Receipts’

His Excellency Sami Al Qamzi, Director General of DED

n line with Dubai’s Smart City vision, Department of Economic Developed (DED) has unveiled a new initiative for the retail sector called ‘City Smart Receipt’. Using ‘City Smart Receipt’ Technology, retailers will be able to issue smart receipts

to customers rather than paper or e-mail receipts. A memorandum was signed to this effect by His Excellency Sami Al Qamzi, Director General of DED, with retailGreen – a green technology firm based in San Francisco. This project is expected to revolutionise the shopping experience of the consumers giving added ease and accountability. Shoppers are also guaranteed of better spend analysis and smart merchandise services while the retailers can have real time reports and statistical analyses reflecting the purchasing patterns of consumers. Such information will help retailers to assess their markets better, reach out to different customers more efficiently and increase their revenue. “Dubai has gone past a milestone along the high-tech street with His Highness Sheikh Mohammed Bin Rashid Al Maktoum articulating his vision of a ‘Smart City’ where the public

can access all government services on their smart devices from anywhere in the city. DED is committed to take our online services to the next level to support His Highness’s vision. The ‘City Smart Receipt’ is a smart solution that will increase competitiveness in Dubai’s retail sector,” Al Qamzi stated. “Both retailers and consumers will benefit from the ‘City Smart Receipt’ initiative. It will also enhance transparency in retailing and consumer confidence. With the smart solution in place DED will be able to issue permits for promotions online without retailers having to submit paper printouts. The real time digital record of purchases will also enable us to provide more accurate reports and assessments on consumer behaviour and business perceptions,” said Al Qamzi. Majid Hamad Al Shamsi, Board Chairman of the Union Co-Operative Society, said his

eMart attracts investor attention The new real estate portal – eMart – has received tremendous response with over 29,000 visitors so far. Prime factors driving the success of the website have been the speed, convenience and security of its electronic transactions, in addition to the strong credibility and trust it fosters through Dubai Land Department. Director General of Dubai Land Department, Sultan Butti bin Mejren, said: “We are delighted to reveal that in just a few weeks eMart has already attracted over 150 real estate firms, 230 investors and more than 1,300 property units with a combined value of AED 139 million. This shows the portal’s blossoming popularity as an all-in-one hub for lucrative property investments. Going forward, we fully expect eMart to achieve much greater success both

Director General of Dubai Land Department, Sultan Butti bin Mejren

quantitatively and qualitatively, as its reputation grows.” The total value of property offered for direct sales exceeded AED 130 million.

retail chain is already working with DED on streamlining the smart receipt concept. “As a business dealing with a large customer population we understand the benefits of implementing this new initiative and we want to be part of this positive change happening in Dubai’s retail sector. It is another example of successful public-private partnership and will ensure 24/7, round-the-year service to consumers,” he added. Ayman Sulaiman, President, retailGreen, said that the company has succeeded in forming strategic alliances with some of the largest shopping centres in Dubai as well as in California. “Dubai’s ‘Smart City’ is a model for the world to follow, showing how governmental agencies can be as efficient, productive and environmentallyfriendly as any private sector enterprise. We are proud and honoured to be chosen to partake in this bold venture.”

eMart also conducted its first e-auction, with transactions quickly passing the AED 75 million barrier. Ben Mejren added: “Another pleasing aspect is that the visitors whom we are attracting to eMart represent a cross-section of various nationalities: over 20,000 Emiratis, more than 2,500 Americans, 700 Britons and 500 Saudis. There is also growing interest from Indian, Pakistani, Kuwaiti, Qatari, French, German, Russian, Canadian and Japanese buyers and sellers, among many others. This reflects eMart’s cross-cultural appeal and Dubai’s prestige among global property investors following the renaissance of our real estate sector. Currently, Dubai is the second most sought-after property destination after Hong Kong, but Dubai always aims to be the very best and the same philosophy will drive eMart.”

January 2014

FINANCE FOCUS

DEWA’s new campaign

ubai Electricity and Water Authority (DEWA) launched a new campaign ‘Relax’ which highlighted the 17 different, immediate and convenient methods of payment that it offers customers. “In line with the electronic and smart transformation of Dubai Government,

DEWA has launched cuttingedge services through its website and smartphone applications to further facilitate transactions for customers. We place the highest emphasis on customer satisfaction, which is reflected in our commitment to introduce newer payment platforms. We

not only draw on the power of technology but also look at ways to strengthen awareness on these payment channels among our customers. Through the ‘Relax’ initiative, we aim to instill the message among our customers that they can make DEWA payments seamlessly, and at their convenience, without having to visit DEWA’s offices. The different payment channels also underscore our commitment to the UAE government’s approach to promote m-governance, by making different facilities available online and through smartphones,” Amal Al Suwaidi, VP of Customers Relations at DEWA. “Dubai Taxi Corporation (DTC) is proud to support

Top brokerage house in the UAE According to official data published by the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX), the investment bank MENACORP has been ranked the number one brokerage house in the UAE by trade value for 2013. MENACORP is primarily based in Abu Dhabi with a secondary office in Dubai. The financial services group offers Investment Banking, Securities Brokerage, Asset Management, Financial Research, and Shariahcompliant financial solutions. It is authorised and regulated by Emirates Securities and Commodities Authority

From left to right: Petr Molik, CFO, MENACORP; Fathi Ben Grira, CEO, MENACORP; and Nabil Al Rantisi, Managing Director Brokerage, MENACORP

as well as the Dubai Financial Services Authority. MENACORP is chaired by Hamad Ghanem Bin Hamoodah and is fully owned by the prestigious

and collaborate with DEWA on this campaign which aims to provide electronic and smart services to customers. This is in line with the ‘Smart Government’ initiative, which has drawn policies for the smart and electronic transformation. We look forward to contribute positively to this transformation,” said Mansour Rahmah Al Falasi, Director of Resources and Support of DTC. DEWA’s methods of payment include ePay through the DEWA’s website; mPay through mobile phones; customer service centres; Etisalat automatic payment machines; EPPCO and ENOC petrol stations; ATMs of several banks; phone banking; as well as smart mobile phone applications such as iPhone, iPad, Android, Windows Phone 7, BlackBerry, BlackBerry Playbook, BlackBerry 10, Windows Phone 8, Windows 8 application, and Samsung Smart TV.

Abu Dhabi-based conglomerate Bin Hamoodah Group. Fathi Ben Grira, CEO, MENACORP said: “Being formally recognised as the leading financial services firm in the UAE markets by the DFM and the ADX is a great honour for our team. On a day-to-day basis and in our long term plans, we are driven by the ambition of providing the best quality of service to our clients. We believe that putting our clients at the centre of our preoccupation is the winning formula for our success. This is particularly the case on the Dubai Financial Market where the gap between the first, us, and the second brokerage firm crossed AED seven billion in terms of trading value, which is the largest difference between two firms since the creation of the DFM.”

Kaspersky offers sound solutions

esearch by PWC revealed that cyber crime has become the second most frequent type of economic crime experienced by financial services companies, after asset misappropriation. Although financial institutions benefit from regulatory requirements and industry regulations designed to safeguard customer data, very small financial service providers are hindered by limited budgets and lack of expertise when protecting their customer information. These businesses are obvious targets for cybercriminals that seek to steal stored credit card information, credentials, and bank account details of customers. Furthermore, in a Kaspersky release, experts explain that businesses that provide financial services and healthcare services are among the most highly targeted by cybercriminals. In both sectors, customers trust these businesses with a great deal of sensitive information â&#x20AC;&#x201D; medical records,

payment and bank details, or other confidential information. For financial and healthcare service providers, the consequences of such attacks are plentiful, including damage to their business reputation and the loss of angry or worried customers, along with computer network downtime that cripples their ability to function. Small businesses in these sectors also must worry about potential legal action and costly fines if the result of the data breach violated any government and industry regulations. Effective solutions

For small healthcare and financial service providers, Kaspersky Lab recommends using limited numbers of mobile devices for business purposes. While smartphones and tablets may add some convenience and accessibility, they add many new layers of risk. If any mobile devices are used for business purposes, they must be equipped with

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anti-theft security features that enable remote locking and wiping of misplaced devices. Also, data encryption is a vital component of maintaining the security of sensitive data. Encryption is not only a key technology for any mobile device, but it should also be used on desktop and laptop PCs, as well as any file servers. Very small businesses can find straightforward encryption technology in security solutions like Kaspersky Small Office Security that makes it easy to render sensitive data inaccessible to cybercriminals. Properly encrypted data will ensure protection from accidental deletion and unauthorized employee access as well. In fact, most financial and healthcare service providers will find that data encryption is required by law. Another easy way to bolster security is to instill strong password discipline amongst employees. An effective way to enforce good password habits is to use a password manager which stores all employee passwords in encrypted vaults, so employees just have to remember a single â&#x20AC;&#x153;master password.â&#x20AC;?

January 2014

FINANCE FOCUS

His Excellency Abdulrahman Al Saleh, Director General, DoF

Department of Finance delivers training

he Dubai Government’s Department of Finance (DoF) recently held a series of specialised financial training sessions – Malyoon – aimed at scaling up the financial performance of government employees. These sessions were

organised in collaboration with the Mohammed Bin Rashid School of Government (MBRSG) – a premier institution for research and education in public policy in the Arab world. Key topics highlighted during the sessions were government accounting practices, managing and executing a public budget, statistical projections, government financial systems, Dubai’s financial policies, finance management skills, and risk-based auditing. The participants of the training sessions were divided into three groups – the first group included new finance-sector employees, while the second comprised senior employees and a third group enrolled employees based on their specific training requirements. Each session offered courses customised to the group to ensure maximum benefit. Furthermore, the sessions raised awareness through training courses provided by experts from different government departments who linked theoretical and practical concepts in order to ensure that the course content was relevant and informative. His Excellency Abdulrahman Al Saleh, Director General, DoF, said: “The training programme certainly achieved its goals for 2013 by increasing the financial

awareness of government employees. At DoF, we look forward to stepping up our collaboration with Mohammed Bin Rashid School of Government to develop new programmes for 2014. Through these sessions, we are targeting not just employees working in finance departments, but also those interested in this important field that concerns us all and keen to expand their knowledge. The initiative was intended for incumbent government employees along with select batches of newcomers.” Ali Sebaa Al Marri, Executive President of the Mohammed Bin Rashid School of Government, said: “At MBRSG, we aim to enhance the skills of public sector departments in our country, as these are the key drivers of the economy. The financial training courses are structured to help different departments and organisations regardless of their size and nature of business. Such programmes ensure dynamism and growth and lead to sustainability in the organisation as a whole. In designing the Malyoon programme we worked on gathering a team of experts from the financial sector with years of regional experience to ascertain that the programme participants benefited from the most up-to-date financial practices and know-how.”

Stationery.ae wins top honour at SME Congress and Expo The SME Congress and Expo 2013 proved to be a major success attracting a large number of SME owners, entrepreneurs, industry leaders and experts from all across the region. One key highlight, however, was its Pitch for Investment competition which sparked a lot of attention. At the end of the exciting competition, Stationery.ae – an online shopping platform offering a range of over 50,000 stationery – emerged as a winner. The startup, based

in the UAE, will provide stationery and office supplies at competitive rates, and aims to become a one-stop-shop stationery solution for consumers. Walied Albasheer, CoFounder and Chief Executive Officer of Stationery.ae, said: “The whole idea of Stationery.ae came about through a personal challenge I had when searching for stationery for my own three young daughters, and I’m sure that many parents in the UAE experience the same challenges.

The team behind Stationery.ae – the inaugural winner of the Pitch for Investment competition at the SME Congress & Expo.

“Children are very particular about the stationery they want, and buying the right items can take days or weeks going from store to store. What Stationery.ae provides is an enjoyable shopping experience, convenience, and availability of products

at cheaper prices. “Our research found that the total addressable market is 1.2 million customers spending AED 1.6 billion annually on stationery and office supplies. Our aim is to capture 10 per cent of our target market in the first three years.” Stationery.ae was voted as the best out of ten SME finalists from more than 200 nominations across the Middle East in the Pitch for Investment competition.

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January 2014

SME ABOUT TOWN

During the event

DEWA’s Creativity and Innovation Conference

n line with its commitment to support creative ideas and innovative projects that help provide best services, Dubai Electricity and Water Authority (DEWA) held the third Creativity and Innovation Conference. The event highlighted ways to develop creativity, innovation and active participation, and offered key advice on the steps to implement new ideas that contribute to improving operations,

problem solving, encouraging employees, and achieving customer satisfaction. In attendance were His Excellency Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), HE Abdulla Al Karam, Chairman of the Board of Directors and Director General of the Knowledge and Human Development Authority (KHDA), key decision-makers and senior managers from government entities, and industry leaders. “At DEWA, we work to implement the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, aimed at improving government performance through the application of best practices. Our goal is to achieve organisational

excellence in providing services to customers according to the highest quality standards, supporting Dubai’s position as a global hub for finance, business, and tourism. DEWA adopts an integrated strategy to implement creative ideas based on leadership and innovation to enhance its vision of becoming a world-class sustainable utility, where leadership plays an important role in supporting excellence in DEWA,” said HE Saeed Mohammed Al Tayer, MD and CEO of DEWA. “This conference aims to improve and develop the skills of participants through the presentation of teamwork mechanisms to improve and develop the standards of management excellence. This will be led by the application of innovative ideas and promoting collective performance as well as keeping up with the latest international developments. This is part of our efforts to implement the strategy of the Emirate of Dubai and to ensure the application of the highest international standards, provide better services, and keep up with the latest developments in all areas of our work,” added Al Tayer. “Innovation is the basic foundation of what we do on a daily basis. We always seek best results through best processes and practices, and our day to day operations are based on a large base of information and knowledge to help us improve our procedures, services, efficiency, and reliability,” added Al Tayer.

i2 institute’s second conference

Dr. Hayat Sindi, Founder and CEO of i2 Institute

i2 Institute for imagination and ingenuity will host its second annual conference – Impossibility to Impact – at the Four Seasons Hotel, Riyadh, on February 17, 2014.

The Institute, which aims to develop and support young scientists, engineers, and future entrepreneurs in the Middle East, will put together an impressive panel of innovators and business leaders, who will participate in presentations, panel discussions and workshops. In addition, six talented innovators, from the inaugural class of i2 Fellows, will showcase highlights from their experiences during the i2 Institute’s eight month Fellowship programme.

Dr. Hayat Sindi, Founder and CEO of i2 Institute, said: “i2 is a unique community where scientists, engineers and technologists learn to transform their patented ideas into sustainable businesses and where business leaders can find inspiration in early-stage work that has the potential to change the world.” In addition to the Fellows’ presentations, panel discussions, and speeches, IDEO – the Global design and innovation firm – will

host a two-hour presentation and workshop session on Managing risk through the practice of design during the conference. Attendees will actively participate in learning and using design tools such as prototyping, brainstorming, and iteration to manage inherent risks of the entrepreneurial journey. The i2 Fellowship 2013 programme partners are: Harvard, IBM, National Geographic, Institute of Federal Science in Geneva, PwC, Elixir Business Consultancy, Pop!Tech and the MIT Media Lab.

Dubai Chamber’s seminar

Atiq Juma Nasib, Senior Director, Commercial Services Sector, Dubai Chamber

t a recent Oracle Usability Advisory Board meeting, Dubai Chamber of Commerce and Industry shared the organisation’s experience in using Oracle Fusion system which it has adopted as part

of its efforts to develop its services for the benefit of the wide segment of its new members and the overall business community in Dubai. The new Oracle Fusion Application includes Financial, Procurement

and Inventory and Human Capital Management suites, and allows the customers to reduce the time it takes to complete their transactions while helping the Chamber to achieve excellence in its IT operational efficiencies as well as cost reduction. Atiq Juma Nasib, Senior Director, Commercial Services Sector, Dubai Chamber, stated that the Chamber is committed to providing the most upgraded e-services to the representatives of the business community and its wider clientele base as part of its efforts to enhance customer satisfaction while enriching the reputation of Dubai as a leading destination for business and finance. The Dubai Chamber has recently launched a smartphone app on the iOS and Android platforms which provides users with all the information about Dubai Chamber, its products and services, upcoming events, press releases and archives of all Chamber TV videos and e-Government in a very concise and effective manner.

Etisalat’s keynote Round Table event One of the region’s bestregarded communications specialists - Ayman Ibrahim El Dessouky, Chief Sales Officer, Etisalat – will be leading a keynote Round Table event that clearly outlines the principles and processes of empowering growth. Putting in place the building blocks that business owners and directors can take away and immediately apply to their own challenges and business objectives. Attendees can also benefit from the views of key professionals gathered around the table: captains of industry, SME champions and personalities with a proven record of business success. What do they think of as the best and most practical approaches to effective

communication? How will they interact with Ayman Ibrahim El Dessouky’s vision of growth and powerfully extending reach? Free to attend - and starting with coffee, light breakfast and networking - this is a keynote event, taking place in the stunning venue of the Ritz Carlton, DIFC from 8:00am, January 28. The session promises to • Propose fresh, imaginative and inspirational approaches to driving your business forward. • Explain and assess key issues like mobility and the new multi-screen culture - how they can leverage dramatic change in your SME. • Leverage better and more effective ways of extending

Empowering growth, extending reach A power dialogue for supercharging SME performance

your communication and sales footprint. • Have extremely practical benefits, with portable ‘modules’ to apply to your own business and how it works. • Give the means to overcome ‘brick wall’ challenges when traditional approaches have resulted in a dead end. The most professional solutions

Etisalat is the region’s leading telecoms provider and a key

innovator in the provision of bespoke, advanced and costeffective communications platforms for the SME sector. From pioneering the use and application of Cloud technology to providing the most effective business devices - transforming everyday business capabilities - Etisalat is recognised as a business with a powerful tradition of building key partnerships across management, government and communities.

January 2014

SME ABOUT TOWN

Information Security workshop for government entities

His Excellency Ahmed Bin Humaidan, Director General, Dubai Smart Government

ubai Smart Government (DSG) held an introductory workshop to highlight its latest services and solutions complementing Dubai Government’s Information Security Regulation (ISR). The workshop, attended by representatives of the information security sector in all Dubai government entities, was aimed at boosting investments in Information and Communication Technology (ICT) infrastructure development, promoting government

performance and achieving a high status within the global knowledge economy. The workshop complements the efforts exerted by DSG to fulfil its obligations after the Information Security Committee adopted DSG’s Information Security Regulation in implementation of resolution No. 13 for 2012 on information security at Dubai Government which was issued by the Dubai Executive Council. The aim was to enhance information security and protect its technical systems in line with an integrated framework and a unified strategy for information security that will ensure the creation of a secure and reliable environment to preserve government information efficiently as well as maintain customer data privacy. His Excellency Ahmed Bin Humaidan, Director General, Dubai Smart Government, said: “The introductory

workshop addressed major strategic themes to create an integrated digital environment to process government transactions according to the highest standards of security, reliability and transparency. Spreading information security culture between local government entities and strengthening mechanisms for notification of emergency incidents affecting the security infrastructure are the top most agenda of DSG, which has recently adopted the ISR to accelerate the transition towards the smart government model.” “Our co-operation with two major information security companies, Symantec and Zeroday comes as part of our commitment at DSG to enhance digital security and adopt proactive methodologies to reduce IT-related threats. On our part, we pledge to continue to implement the latest technologies to improve the level of information security within the framework of government entities in Dubai in support of the Dubai Smart City project in line with the directives of His Highness Sheikh Mohammed Bin

Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai,” concluded Bin Humaidan. DSG representatives also discussed the security awareness programme and the spread of security information culture among the employees of government entities which is based on the Apprenticeship Training Programme and is to be implemented by early 2014 in co-operation with Zeroday, an information security service provider. The programme includes training selected government groups in Dubai in various aspects relating to processing, management, updating, storing, and transferring of information available to them according to the highest standards of reliability and confidentiality. Trainees will receive accredited certificates upon successfully completing the training course, qualifying them to train and educate all the employees at the government entity, which the trainee belongs to. Further, DSG aims to carry out a comprehensive assessment to measure the efficiency and readiness of the awareness programmes in local government departments.

TRA holds mGovernment workshop The Telecommunications Regulatory Authority (TRA) hosted an mGovernment workshop, in coordination with several government entities, which discussed the role of each entity in achieving mGovernment transformation. The workshop also highlighted ways to achieve high levels of coordination and mutual cooperation between different entities. Furthermore, other topics included identifying the roadmap of the transformation process and mapping the

progress achieved in the implementation of the mGovernment initiative as well as the financing mechanism. “In this workshop, we aim to review the progress achieved by the federal government entities in the process of mGovernment transformation and review the new ideas and innovative suggestions provided by each entity in this regard. We have also reviewed the financing mechanism of this project in each government entity,” said His Excellency Hamad Obaid Al Mansoori,

Deputy Director General for Information and e-Government Sector at the TRA. “As we are responsible for the transformation towards mGovernment, we stay committed to achieving the transformation process within the set deadlines for each phase. And following up with government entities on a regular basis is a part of the mGovernment strategy which aims to provide high quality services and applications that fulfill the objectives set for the mGovernment initiative,” he added.

Dubai Chamber highlights trade potential source of the UAE industry raw materials and a destination for the country’s exports and re-exports besides representing a good potential for its investments. 3. Latin America holds a great potential for both trade and investment that UAE businesses need to explore for the future growth of the country.

Dr. Belaid Rettab, Senior Director, Economic Research and Sustainable Business Development Sector, Dubai Chamber, during the seminar

ubai Chamber of Commerce and Industry held a seminar on assessing economic trends and outlooks for the world’s major economies including US, EU, Asia, Africa and Latin America in light of their impact on the UAE economy and the potential these markets hold for UAE businesses.

Some key points highlighted at the event were: 1. The US and EU represent the main sources of import for UAE’s capital goods, financial services, investment assets, hard currencies and tourist flows. 2. The emerging Asian economies are the main trading partners for goods while the developing economies of Africa are the

Upcoming opportunity: Green Career Fair The Green Career Fair, held in partnership with the Masdar Institute of Science and Technology and Reed Exhibitions, will be a great opportunity for recruiters to highlight job opportunities and provide career guidance in areas of advanced energy and sustainability. The Fair will be held from January 20 to 22 during the seventh World Future Energy Summit. Besides meeting up with potential employers, professionals will be able to attend workshops on renewable energy career topics and make use of a ‘Career Advice Desk’ to get tips from HR professionals on site. The Fair

Giving an overview of the global economic outlook for 2013, Dr. Belaid Rettab, Senior Director, Economic Research and Sustainable Business Development Sector, Dubai Chamber, stated that the industrialised economies, which had been contracting since the global crisis, had shown steadily positive, albeit low, growth. He added that the total UAE and Dubai’s economies

also includes features such as career opportunity booths and specialised interview areas. Dr. Behjat Al Yousuf, Dean of Students, Masdar Institute, said: “Platforms such as the Green Career Fair offer emerging clean energy professionals the right channel for their professional development through engaging with industries in the field to discuss future trends in clean energy capacity building. Mandated to focus on human capital building and knowledge development, Masdar Institute contributes to nurturing a talent base that generates IPs and patents, most suitable to the industry. We hope WFES 2014 will serve as the right forum for leading clean energy corporate brands to identify and select the right professional skills to ensure industry growth.” Naji El Haddad, WFES Show Director, is positive the Green Career Fair will

are both expected to grow by at least five per cent while Dubai’s contribution to the UAE’s ranking 23rd globally and number one regionally is immense, according to World Bank Group’s Doing Business 2014 report. Dr. Belaid further stated that there has been substantial growth in Dubai’s exports and re-exports this year while the decline in exports to war-torn and sanctioned major markets in the region had been more than compensated by the growth in other markets in the region like Iraq and GCC countries. He also said that the yearon-year comparisons point to improving expectations, reaching a peak of 80 per cent for Q4-2013 which is based on the winning of the bid to host the World Expo 2020.

add great value to all those who attend the event and who are interested in providing new jobs and economic opportunities for youthful and fastgrowing populations. “The Green Career Fair will be filled with people who work directly or indirectly in renewable energy industries and who acknowledge the benefits of energy efficiency and renewable energy as central elements of any green economy strategy. This is the perfect setting for companies and candidates to come together and explore ways of working together.” “The Green Career Fair is yet another initiative to support the UAE youth and community, by engaging students and young professionals in career advancement opportunities within emerging industries of advanced energy, water and sustainability sectors in the UAE and the region,” said El Haddad.

January 2014

PROPERTY INSURANCE

Getting the basics right:

PROPERTY INSURANCE

For a business, Property insurance is arguably the most important type of insurance you can have - literally protecting the roof over your head and giving you the means to repair, rebuild or relocate if disaster strikes. Surprisingly, all too many businesses in the GCC have inadequate property cover and risk being wiped out in the event of fire or catastrophe. Will yours be one of them?

The difference between these two situations amounts to two words: property insurance. You will also see that the first set of options results from an understanding of property insurance as an organic and very flexible - entity that can be moulded closely to your business’ needs and commercial commitments and expectations. It also has the advantage that it can be as simple or as complicated as you need it to be: from insuring a small 500 sq.ft, office to a series of extensive warehouses and mixed-use facilities, from covering four walls and a relatively simple data system to the extreme storage and handling requirements of toxic or highly flammable goods. Understanding what’s covered

onsider the following scenario: if your business premises caught fire tomorrow and were burned to the ground,

would you • Immediately contact your insurer and implement your Disaster Recovery Plan, aiming to relocate to your new temporary premises in approximately three working days? • Confirm the starting date for the property rebuild and the likely delivery timings for new laptops and business hardware? • Have a cheque for replacement of lost stock within 24 hours, enabling you to meet your challenging raft of contractual obligations with no hassle or interruption? Or • Have absolutely no idea when you can rebuild and have no certainty at all about staff retention and salary payments. You will also face a torrent of legal actions from broken supplier agreements.

One of the big differences between commercial property cover and property cover for private individuals (eg, for homes, etc,) is that in commercial policies the definition of “property” is very broad, and includes: • Lost income • Business interruption • Buildings • Computers • Company papers • Money • Industrial, manufacturing plant • Utilities located alongside industrial/ manufacturing plant • Machinery and accessories • Storage risks outside the compound of industrial risks • Tanks/gas holders located outside the main compound of industrial risks Almost any kind of facilities, equipment and goods can be included on the policy, but of course, this requirement may be reflected in a higher premium (storage of cellulose paints or chemicals would be a prime

example). Similarly, you may be required to list the specific locations in which they are kept, to see whether this represents an acceptable risk to the insurer. Managing the risks

Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. Typically, you will find the following risks covered: • Fire • Lightning • Explosion, implosion • Aircraft damage • Riot, strike • Terrorism • Storm, flood, inundation • Impact damage • Malicious damage • Subsidence, landslide • Bursting or overflowing of tanks • Missile testing operations Yet there are certain other categories of incident that will generally be excluded from cover. These are: • Loss or damage caused by war, civil war, and kindred perils • Loss or damage caused by nuclear activity • Loss or damage to the stocks in cold storage caused by change in temperature • Loss or damage due to over-running of electric and/or electronic machines Choosing your insurance: Open Perils versus Named Perils

Property is insured in two main ways open perils and named perils (sometimes referred to as all-risk policies and perilspecific policies). Open perils policies cover a wide range of incidents and perils except for those named in the policy as specific exclusions. Whereas named perils policies require that you physically list and name the risks

January 2014

PROPERTY INSURANCE

that you want to be covered: you won’t receive a payout on anything outside this list. Typically, policies in areas such as fire, flood and business interruption cover will work on the basis of named perils. As a rule of thumb, an open perils policy will generally cover the spectrum of risks faced by most small businesses, while named perils cover is usually the domain of larger companies with a high risk of incidents of a certain, identifiable kind. Style of payout

Do you want to have a seamless, noquestions-asked replacement of your property in return for a higher premium? If so, you will opt for Replacement Cost Coverage, which pays the cost of replacing your property regardless of depreciation or appreciation. The premium here is calculated on the basis of replacement value, not actual cash value. Or, alternatively, you can opt for Actual Cash Value coverage. This provides for replacement cost minus depreciation. If construction costs have increased, you can

take out an Extended Replacement Cost policy to ensure that you won’t be left too badly out of pocket. Property cover and risk management

One of the important trends in property cover over the last 20 years has been the growing influence of risk management. This is the discipline of reducing the range of likely risks on the premises so that there is much less likelihood of claims. If your business has an effective risk management agenda in place, it can make a substantial difference to your insurance premium. On the other hand, you may have to commit valuable resources to putting the risk management criteria in place. As a business owner or manager, you will have to decide if this is worth the up-front financial cost. Some examples of classic risk management protocols include – • The absolute banning of smoking from all office premises - especially in warehouse environments storing flammable goods. • The installation of proper Health & Safety signage highlighting key risks.

• Safe storage criteria for LPG and gas cylinders, well away from all heat sources and preferably in locked cabinets. • Secure overnight storage of all computers, company mobiles, tablets, etc. • Fitting of handrails to all staircases. • Secure deadlocks on cash offices and cash-handling areas, and where unique keys and entry cards are stored. • Adequate lighting in courtyard and service areas. • The re-alignment of assembly plant to ensure minimal risk exposure to staff. One warning note: the power of risk management thinking is now such that in some cases it will be impossible to get any insurance cover at all without at least a modicum of sensible provision in place. It’s vital not to let that challenge put you into the alternative scenario mentioned in our introduction… For an online version, please visit: www.smeadvisor.com/2014/01/getting-thebasics-right/

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MOVERS AND SHAKERS

The quest for innovation Innovation is not only the single most important factor in SME competitiveness, it’s a vital ingredient in leadership - driving and sustaining strategy and market recognition. Here, we meet one of the leading exponents of innovation-fuelled creative leadership: Dr. Mark Batey from Manchester Business School. Since 2008, he’s been one of the most published researchers in creativity, leadership and executive education. Here, he speaks to SME Advisor about why innovation is at the core of management DNA supercharging change and ensuring relevance, pace and influence… Dr. Mark Batey, Manchester Business School

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January 2014

MOVERS AND SHAKERS

Mark, many other business thinkers have looked at the issues surrounding effective leadership and the role of innovation. How do you see yourself fitting into that tradition?

“It would be very wrong not to ‘doff one’s cap’ to those who’ve done so much work beforehand. There’s a terrific body of literature dating back throughout most of the 20th century that has done a great job of influencing the way that people manage and lead. So much so that much of their influence has become second nature. Yet what I’ve tried to bring - tried to add to that equation - is a decade of hard, solid research twinned with a mass of data gained from painstaking work with organisations from all around the world. I see myself as something of a ‘curator’ - collecting good ideas and examples of rigorous thinking. I then make a fresh and well-informed analysis that can be founded on something really solid and relevant to the way that people actually work. Have you always been drawn to analyzing the role of creativity in leadership?

Yes, but that fact is that we all know about creativity and the important role that it plays. But for me, the question is a very practical one – finding creative solutions by getting rid of cultural unfamiliarity. You see, what is practical and relevant in Latin America won’t necessarily be practical and relevant in the Middle East - and the Far East will require something different again. Getting into the unique DNA of what works in each environment is what fascinates me; and it drives me

What is practical and relevant in Latin America won’t necessarily be practical and relevant in the Middle East and the Far East will require something different again. 28

to produce practical guidance for the manager who happens to be working in those unique cultural conditions. “Creativity in a business setting is about ‘our people, our customers, our practices’ - and I mean ‘our’ as distinct from anyone else’s. You simply can’t copy what’s working in America and expect it to apply in Sudan.” How do you actually interact with companies during your consultancy? Is it you working as an individual, investigating what makes a company tick?

“Sometimes, but that’s not really my ‘modus operandi’. I prefer to try to get rid of the ego around the ‘I’ in the equation,

and work with focus groups and given leaders, working in the way that they want to work and in ways they feel comfortable with. So the research is designed around them, not led by a model that I happen to have in mind.” Have you actually been able to develop a particular working ‘toolkit’ that’s available to managers who want to boost their own leadership potential and performance?

“I’m the founder (but not the owner) of a company that has evolved a set of creativity tools which are branded MC2. They’re published by e-metrixx, and they’re practical tools for recruitment, development, training and audit.

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January 2014

MOVERS AND SHAKERS

isn’t a bolt-in extra, but a core part of the way a business lives and breathes.” How important is the role of innovation in a business’ success?

Dr. Mark Batey, led an exciting discussion on creative innovation within leadership

“Innovation is fundamental not only to business success, but to the way society changes. Humanity has never stood still, and it’s innovation that is the real change-maker. It’s absolutely inevitable that any business that doesn’t move at the same speed as this innovation culture will fail - just look at the likes of Kodak, which led the world for half a century but failed to respond to the signs that the world and its expectations were altering. It’s the same for any business: if you don’t innovate, the world will keep on innovating regardless and you’ll be left behind. A core part of this is the willingness to embrace experimentation and expect that some mistakes will be made. Embrace the failures as much as the successes and you’ll ensure that your top people won’t be afraid to innovate, lead creativity and pioneer bold brand re-alignment.” As a specialist in creative approaches to leadership, do you see yourself as someone who thinks ‘out of the box’?

capabilities: amazing though it may be, it’s only useful insofar as what it can achieve, “Actually, I’m more interested in thinking Making cultural not because of how it looks as a server. in the box than out of it! My concern is Imagine a plumber standing around and always how to do things in the most changes isn’t a boltadmiring the piping, when really it’s the practical, relevant ways, giving businesses in extra, but a core water inside that really matters!” really replicable, workable solutions. My part of the way a job isn’t about coming up with a rocketbusiness lives and science solution that no-one can use in As a business school academic, how committed are you to traditional the real world - it’s about getting into the breathes. DNA of the culture, the geography and publishing media? “The answer is ‘not very’. Increasingly, the values and finding the touchstone I’m getting less and less interested in triggers that can really leverage change I’m delighted to say that every day, these traditional academic publishing - I in simple, effective, everyday ways. “This is why the real innovations tend tools are proven to work in a myriad of actually prefer to talk to people!” different applications and contexts.” to result from a long history of small Do you find that there’s one typical experiments that in themselves haven’t Do you feel that the increasing role of challenge you face during your necessarily worked spectacularly well. technology has influenced attitudes to consultancy projects? When Edison perfected the world’s first innovation and leadership, or the style “Oh yes. In client projects, there’s often the light bulb, he’d already been through of creative leadership that organisations same challenge - the people who employ 3,000 unsuccessful versions. Successful require? you want you to change the way their innovation means talking practical steps “Technology is a red herring! Technology people think, feel and work - all in the in order to reach a relevant, workable goal. always changes - it’s the human actions course of half a day’s consultancy! This That’s why innovation is so challenging that really matter. There’s a tendency just goes to show that a business needs and why - when you really see it - it’s just for technology to dominate discussions top-down processes: the leader needs to so amazingly effective.” and occupy centre stage, but it’s only be committed to the fact that change can important insofar as what it facilitates, not only come about organically, through the For an online version, please visit: for its own sake. Take the example of the IT values he or she instils in the business, www.smeadvisor.com/2014/01/the-questgurus who create a new server with great day in, day out. Making cultural changes for-innovation/

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January 2014

Business innovation

The â&#x20AC;&#x2DC;Innovate to Leadâ&#x20AC;&#x2122; round table event

Innovate to lead

- a power dialogue for SMEs

A round table event hosted by Manchester Business School on December 17 was dedicated to discussing the role of creative innovation in leadership - and how it can provide the catalyst for growth, competitiveness and brand awareness. The session was led by Dr. Mark Batey, the eminent workplace behaviour specialist from Manchester Business School, who has built a worldwide reputation for his fast-paced and highly provocative approach to essential leadership issues.

session - eloquently led and enthused by Dr. Mark Batey - went on to discuss keynote themes such as • The importance of continued innovation - if you stop innovating, the world doesn’t, and you’ll be left behind. • How any initiative to implant an ‘innovation culture’ has to come from the top and be made totally part of the business’ DNA. • How genuinely creative leadership gives you the means to overcome ‘brick wall’ challenges when traditional approaches have resulted in a dead end. • Innovation leverages better and more effective ways of encouraging staff to deliver on challenging goals and targets. • To be practical and effective, innovation has to take into account the different cultures and value-sets of the business:

The objective of the day’s agenda was to put in place the building blocks that business owners and directors can take away and immediately apply to their own challenges and business objectives.

ow can a CEO combine strategy with the everyday essentials of urgent business life? Develop fresh and inspiring solutions that are practical, realistic and easily applicable to the challenges facing an SME? These were among the questions addressed in the ‘Innovate to Lead’ round table event, which took place in the glittering surroundings of Jumeirah Beach Hotel - and attracted such a large attendance that it was strictly a case of ‘standing room only’. No wonder: because the objective of the day’s agenda was to put in place the building blocks that business owners and directors can take away and immediately apply to their own challenges and business objectives. What’s more, the event followed

an almost-unique format in that, following an introduction by the moderator, Paul Godfrey, the morning’s discussion actually panned out across three dynamic elements • A keynote presentation from Dr. Mark Batey on the role of creativity and innovation in effective leadership. • A round table discussion bringing in the views of thought leaders and champions of the SME sector. • An ‘open floor’ dialogue, inviting questions, comments and interaction from the audience of 75 delegates. The end result was a ‘hot-house’ exchange of fertile views and a tremendously vibrant dialogue that happily over-ran its planned time slot by nearly 45 minutes! Starting with coffee, light breakfast and networking, the

an approach that works in the USA won’t work in the Middle East, and a different approach again will be required in the Far East. Debate!

While Dr. Mark Batey took the view that empowering staff and encouraging creativity is intrinsically a good thing (along with the ability to embrace the risk of failure), this view was not universally shared amongst the live audience. Some CEO owners and managers, for example, felt that often, when they had invested time in encouraging staff to be innovative and free-thinking, the process had backfired - staff had taken the opportunity to raise their game and had found better jobs elsewhere!

January 2014

Business innovation

Sadia Noori, Marketing Manager, Family Takaful, Salama Shant Oknayan, Co-Founder, GlamBox Arshad Zaheer, CEO, Crayons Communications Nadine Halabi, Coordinator, Dubai Business Women Council Alexandar Williams, Director of Strategy and Policy Divison - Dubai SME Sudarshan Seshadri, Vice President – Business Banking, ADCB John Merrigan, Partner, Tamayyaz Martin Hughes, CEO, Carranmore Moatassem Al Moataz, Business Partner, INNOVEST Middle East About Dr. Mark Batey:

Dr. Mark Batey, MSc PhD CPsychol AFBPsS, is Joint Chair of the Psychometrics at Work Research Group at Manchester Business School. He has built a powerful reputation for a no-nonsense, fast-paced and

Dr. Mark Batey during the event

It is of course in every manager’s interests to have the best-performing team possible. The reality is that, surely, it is better to take the ‘high ground’ and encourage skills-building and creativity, because their value for the business can be so immense? Similarly, there is often a level of fear about developing staff skillsets, ‘in case they become better than us’. Yet this is itself a very negative view, because it is of course in every manager’s interests to have the best-performing team possible. Growing SME sophistication

One of the most revealing aspects to emerge from the session is how SMEs are now taking an increasingly sophisticated stance in respect to areas such as risk management, corporate governance and best practice. Indeed, these were generally seen as areas that the owners and directors attending the session were keen to develop and which were now being seen as an integral part of the agenda required to accelerate the business on the road to success. Moreover, it was felt that adherence to good practice standards was one important way

Members of the Round Table panel discuss key issues

of differentiating the business and showed a commitment to innovation which led to rewards in terms of customer retention and product upselling. There was also agreement that this view was spreading more widely than ever before through the SME space, albeit not always so prevalent in areas such as logistics contracting, maritime trade and warehousing. The protagonists

The members of the Round Table panel led by Dr. Mark Batey - were: Anas Halabi, Co-Founder, Momentum DIFC K.S Vasudevan, Managing Director, Navo Informatica Prrasad Katta, Regional Director - MEA, Western Union Business Solutions

highly provocative approach to essential leadership issues. The most professional solutions Manchester Business School

Manchester Business School is recognised for its original thinking, with a long and proud history of research – in fact, it was one of the first two business schools ever founded in the UK and is currently ranked first in the UK for business research. A powerful tradition of business thinking is applied for impact across business and management, government and communities. For an online version, please visit:

www.smeadvisor.com/2014/01/innovateto-lead/

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January 2014

Business innovation

isclose financials and ensure that they are audited by a qualified Chartered Accountant. Figures released by Dubai SME In October show that only three per cent of SMEs disclose financials – a staggeringly low figure that disadvantages the sector as a whole and makes it extremely difficult for key financial institutions to evaluate the profitability and viability of the SME space. In many cases, the businesses who are keeping their figures out of the public domain are also likely to have no professionally-audited figures at all, so they are actually placing the future viability of their business at risk.

reate a clear succession plan. Linked to the previous point, in a large proportion of SMEs, figures aren’t divulged because the Director-base is typically contained within the same family, or key offices are held by a coterie of linked individuals. This can be disastrous in the event of a CEO passing away, because more often than not, only he or she will hold the figures and if there is no clear succession plan in place, this can spell the end of the business. So identifying that succession plan is an absolute must.

Your roadmap for 2014 I As we start the new year, what are the key factors that SMEs need to keep in mind in order to best navigate the challenges ahead and fully leverage the undoubted opportunities? Here, Senior Editor Paul Godfrey anticipates the journey ahead and sets out some of the key landmarks to watch for in successfully implementing an effective growth and development strategy. Get ready to count down the 10 kilometer markers...

nvest in a solid risk management strategy for key risks and operational exposures. 2013 proved yet again that all too often, SMEs simply don’t have proactive measures in place to minimize the risks of an otherwise small incident becoming a catastrophe. Risk management criteria are especially important in cases where the SME is holding flammable goods (paint, paper, wood all being classic examples) or occupying old premises where electrical wiring and points of entry and exit are all in need or update. It’s also vital to ensure that the risk management protocols are fully relevant to the needs of the business and not simply part of a package offered by the insurer. A recent survey by Deloitte shows that 49 per cent of all EMEI businesses believe their risk management products are inadequate, and it is imperative to work with the insurer to discuss, assess and cover key risks rather than accept an ‘off the shelf’ solution.

onduct a monthly SWOT analysis assessing Strengths, Weaknesses, Opportunities, Threats. This should involve line and department managers, as well as board directors, since these will often be better-placed to have an ‘ear to the ground’ and assess emerging risks and market openings. Many businesses have faltered because of their unwillingness to undertake SWOT analysis, which - albeit simple - can identify market shifts very successfully.

ecide to employ people who are aligned with the Values of the business. This is vital, because merely having the right CV and appropriate experience doesn’t mean that the fit will necessarily be good - eg, if your business is a ‘stay late’ culture, will the new recruit stay late? If your business says ‘the client is king’, does the new recruit agree?

ssess overseas business opportunities each quarter. The trends affecting SMEs show that there is far greater trade between GCC states than ever before - how can your business take advantage of these? Web-based culture means instant access to global markets - are you pursuing strategies to track down and identify the opportunities now on offer? Remember that in so many areas, businesses based in the Middle East can compete more than effectively with their counterparts in Europe and the USA due to lower pricing and overheads - which can make up for lower economies of scale. But the fact remains that very few actually try.

inalise a coherent strategy for getting finance. All too often (largely due to scarce resources and firefighting urgent issues) there’s a tendency for an SME to veer from one finance initiative to the next,, without one solid, cohesive strategy. For example, have you got a timeline by which you need to get a firm commitment from a lender? Will you seek to expand the investor pool or go with a risk finance application? Is there a clearly defined business plan for how you would use extra finance and the risks of accruing extra debt that it will involve? Will this be the year that you finance the major expansion plan you have in mind, and if so, do you have a credible business plan to show to the potential lender?

January 2014

Business innovation

onsider the role of Asset Refinancing. This can be a powerful way of unleashing valuable cash resources into the business that might otherwise remain tied up in assets that are essentially lying idle and going to waste. Asset Refinancing is similar in principle to remortgaging a house, insofar as equity is released against the current value of an item. It typically involves either refinancing equipment or vehicles which are owned by a company outright and which don’t have any existing lien on them from a third party. Or refinancing assets that are subject to an existing finance agreement. Don’t make the mistake of thinking that success relates to asset ownership in itself - Asset Refinancing can be an ideal way forward for a company that sees itself as totally committed to a growth strategy in 2014.

valuate the potential for Mergers and Acquisitions engagement. While traditionally not a major area of commercial activity in the GCC - largely as a result of required majority local ownership outside of the Free Zones - M&A strategies are growing in popularity. A strong and well-aligned acquisition can bring highly complementary skillsets on board, access valued additional markets and leverage exponential growth that would otherwise be unfeasible. However, the essence of a strong acquisitions path is in the planning: the evaluation of compatibility - not only in terms of markets but in corporate values and ambitions - along with an assessment of the actual value of contracted (not orally agreed) business is vital.

evelop a consistent social media strategy. SMEs are at the two extremes when it comes to exploring the benefits of social media: from top performers with six-figure Facebook ‘likes’ such as Just Falafel, through to countless enterprises with no social media platform at all. The social media revolution means that it’s not only possible to actively market an SME’s services in a far more detailed, bespoke and immediate way than ever before - it also means that you can get an accurate picture of customer impressions, feedback and loyalty - instantaneously.

Follow these 10 steps and lay the building blocks of success in 2014… For an online version, please visit: www.smeadvisor.com/2014/01/your-roadmap-for-2014/

Partner in

Success

Ayman El Dessouky speaks how Etisalat empowers SMEs

January 2014

Empowering SMEs is our core message Whether you want your SME to be part of the digital revolution - supercharging your business with mobility and multi-screen solutions - or simply want affordable telecoms essentials, Etisalat is the region’s market leader, with a powerful raft of tailored and innovative options. SME Advisor spoke to Ayman Ibrahim El Dessouky, Chief Sales Officer, Etisalat, about the opportunities that Etisalat can give SMEs for growth, agility and market development. With the kind participation of Steve Gardiner, Vice President, SMB Development, Etisalat. As a provider with an increasing range of leading-edge products and services, how do you see yourselves as aligned with the needs of SMEs looking to expand their presence in the UAE?

not to mention our specialist SME call centre for fast, effective after-sales support.

“The reality is that SMEs need tools to grow their business - how can you build the business efficiently, cost-effectively and profitably and at the same time increase productivity? You simply can’t do all of these things yourself, and as an integrated telecoms provider with a wealth of experience and expertise we provide the widest range of SME services. Our knowledge-base has been built up from dealing with the needs of more than 200,000 customers, and that has resulted in us being able to offer not only a terrifically diverse range of products and services, but being able to give customers the chance to design the tools the workplace demands - getting the best possible fit with actual, everyday needs.

If a company wants to upgrade its technology platforms, how would you go about interacting with them? In practice, what are the ‘next steps’?

“Etisalat has always been ahead when it comes to developing segment-oriented solutions. So, for those SMEs who are looking to expand their presence in the UAE - and, for example want to create a branch network - we have developed a very cost-effective and reliable solution called ProConnect, utilizing our best in class technology for enabling point-to-point connections between all your offices and units. It’s designed to provide world-benchmarked capabilities and options to SMEs and gives affordable platforms that are totally aligned with how far - and how fast - you want to grow the business.” Tell us about the capability that Etisalat offers as a full-service, one-stop provider? What does this mean in terms of practical support for SMEs?

“The first thing to emphasize here is that we don’t believe in a ‘one size fits all’ approach; we have many different ways of providing support and understand that different models are appropriate to different customer needs. Remember that we offer a complete range of products quite specific to the SME sector, and this covers mobile services, broadband, telephony and the Information, Communication & Technology (ICT) mix. We really believe in a ‘one stop shopping’ approach and that’s why we have a dedicated sales channel that can cater for the full suite of SME requirements,

“I’m delighted to say that we have evolved a comprehensive and thorough way to reach customers and for them to reach us. There are dedicated contact numbers - where you’ll be sure to be dealing with representatives who are knowledgeable about the SME mix and the kind of solutions appropriate to a growing business - and highly developed retail channels where a full range of packaged options is readily available. ‘If yours is a larger SME and you have a fairly complex range of requirements, we’ll explore the best options with you via a site visit and review the range of communication strategies you are currently using, going on to identify the best combination of services. Fundamentally, it’s all about reducing cost and accelerating performance.” What kind of support can an SME expect from your salesforce?

“Our sales forces are hand-picked, continuously assessed and developed so we can assure the best service quality and relationship stability with our customers. In fact, we deal with our customers via a consultative approach, to guarantee that we can totally deliver on the very broad spectrum of business needs. To put it simply, it’s a full partnership between Etisalat and the all-important SME sector.” How can you help an SME be part of the ‘digitization revolution’, and build its mobility across tablets and smart phone formats?

“We have been very much the pioneers in bringing customers the means to become more agile and responsive and help them leverage all the benefits of the mobility that the new multi-device environment can deliver. This is true both in terms of delivering the full range of managed Cloud services and in respect to specific Continued on page 43

Ayman Ibrahim El Dessouky, Chief Sales Officer, Etisalat

Etisalat is the leading provider of Cloud services of every kind, covering all levels of service - private, hybrid and public.

Steve Gardiner, Vice President, SMB Development, Etisalat

What are your current initiatives to provide tailored solutions to the challenges that SMEs face, for example, upgrading to a Cloud platform?

“Etisalat is the leading provider of Cloud services of every kind, covering all levels of service private, hybrid and public. The great thing about working with the Cloud is that you can work from anywhere in the world, with full access to all your company’s data, so your business really becomes supermobile. It’s also excellent if you have a team of people working on the same data, because, for example, you can have different versions of a spreadsheet open at the same time and there’s no chance of corrupting each other’s data. Another factor is that working with Cloud technology is very cost-effective: the days are long gone when you had all the expense of physically updating a server - you simply bypass all the old infrastructure.

products that offer SME customers the latest smart phones and tablets. For example, through Business Ultimate and Business Tablet products, we are supporting SMEs with the digital tools that “Our offer to the market and the way we interact with SMEs has can be utilized in their day-to-day operation. What’s more, the been developed so that we can provide three very complete exclusivity we get in launching many of the latest smart phones service solutions proves that Etisalat is the favourite telecom operator in the UAE • Infrastructure as a service for most of the smart phone providers. • Platform as a service • Software as a service “We also believe in empowering customers so that they have the means to source and build a tailored telecoms package ideally- ‘It’s like a pyramid where you build up each of the operational suited for their needs. So you can buy into a very affordable, layers – and of course, the entire package is available on a ‘payaccessible base package and ‘pick and mix’ a range of options and as-you-go’ basis. So it’s far, far cheaper than paying for extravagant upgrades as you go. Again, what we’re offering is totally aligned services that you probably won’t need. I’m proud to say that we with the budget, financial constraints and business strategies of the have developed a range of SME products that are state-of-the-art, growing SME. We take the view that working in partnership with world class and cost-efficient. Our solutions are the SME space is a prerequisite for success - we see our customers • Available very much as business partners, and through our close dialogue, • Affordable • Reliable their needs have inspired many of our innovations!” - and designed with the customer in mind. They’re practical and customer-driven, not simply led by technology for its’ own sake. Tell us something about your work across the key Free Zones and how this is helping many SMEs expand their customer base?

“The Free Zones are a key differentiator for the SME environment in “For example, Cloud Compute is a new addition to our ICT the UAE - there’s simply nothing to compare with them elsewhere product portfolio that offers Cloud Infrastructure as a Service, in the region, or indeed, even worldwide. Here at Etisalat, we on a subscription basis, which delivers instant value and established a special team for the Free Zones in 2012, and we’re productivity for customers. It’s a solution which provides in close contact with all the Free Zones across the UAE. The quick provisioning, reduced costs, greater resource efficiency, number of Free Zones is increasing year on year; they are very enhanced flexibility on a pay-as-you-go model, and quick healthy environments that strongly contribute to the growth of adaptations with simplified change management cycles, higher the SME sector. Our approach is to build strategic partnerships quality of service, increased reliability with 24/7 availability with the different Free Zones to ensure the very best services for - all in one scalable package.” our mutual customers - the SMEs.” Continued on page 44

January 2014

Tell us about your commitment to a ‘bring your own device culture’ and the cost savings this can have for an SME?

The reality is that our strategic partnerships and relationships are built specifically in order to work for SMEs. Just to mention a few, we have partnered with JAFZA, DAFZA, DSO, SAIF, Hamriya Free Zone and DED Dubai.

“Our support for the new and growing BYOD culture gives customers the chance to design both the network and spread of tools that the workplace is using, as well as boosting user convenience. However, as the largest provider of devices, we also pride ourselves on supplying handsets that often aren’t available elsewhere in the market and which set new and unique operating standards.

“We tailor multiple plans which provide SMEs and their staff with the latest smart phones and tablets with different platforms to ensure the variety in our flavours. This initiative is already launched and undergoes continuous developments Will an SME be able to benefit from the same standard of and enhancements to guarantee that our SME customers use technology that a bigger enterprise can enjoy? “Absolutely. We are in the business of providing benchmark, leading- top-notch technology and the latest-release equipment.” edge solutions regardless of the size or style of business. We take the same world-class technology we use for the big corporates Etisalat is well-known for pioneering a range of business partnerships, helping business owners across many aspects of and we tailor it to scale. We don’t differentiate between the SMEs their day-to-day lives. What are some of the key partnerships and the larger enterprises when it comes to network quality and you see as especially important for the SME sector? the latest technology - they both use the same, but we re-engineer our offerings to suit the needs of SMEs, which of course have “While, as I have mentioned, we see the partnership with our valued customers as a prerequisite for success, another level rather different requirements from the large enterprises in terms of partnership is the extremely important relationship we of scalability and affordability.” have with the companies who sell our products. We give them a tremendous level of support and partner with many of the Can you give three examples of business packages that you leading names in the region. offer for SMEs, which currently lead the telecoms market? “Before looking at those, let me say that we are leading a process of change and transformation throughout the entire telecoms “There is a third level here as well. We invest strongly in strategic partnerships with government and its leading private sector sector, which has daily benefits for every SME. Take something initiatives - and this is key, because these are the very bodies as basic as call centre performance: the entire culture is now being customer-driven, reducing call handling and waiting time. that are driving the SME agenda forward. These relationships ensure that we are an organic part of the change and growth The reality is that Etisalat provides a full bouquet of services that in the SME sector as it occurs. help any SME operate professionally. “In terms of specifics, Business Super is our broadband offer for SMEs. It doesn’t only provide a high bandwidth internet - which goes up to 100mbps - but also features some additional services like e-mail, domain name, web hosting and antivirus. So it’s a thoroughly modern package which helps the SME to digitize. “Meanwhile, our main mobile product is Business Ultimate, which provides multiple benefits on local and international call rates in addition to the flexible data plans for which there’s such a huge demand. One of the great benefits of Business Ultimate is that there’s a host of brilliant, leading-edge devices bundled into the package. At the same time, you have lots of choice and it also aligns perfectly with the growing popularity of the ‘Bring Your Own Device’ (BYOD) culture. Moreover, with Cyber Security becoming an increasingly important issue, we also believe in providing SMEs with state-of-the-art protection - and we’ve recently launched some highly cost-effective security devices, such as Managed Email Security, which utilizes Cloud-based Security-as-a-Service to deliver a high performance, multi-tenant, fully logged service that helps SMEs to secure their corporate e-mail traffic from any location in the world. There is also Managed Web Security, which is a comprehensive online security suite to ensure business continuity.

“The reality is that our strategic partnerships and relationships are built specifically in order to work for SMEs. Just to mention a few, we have partnered with JAFZA, DAFZA, DSO, SAIF, Hamriya Free Zone and DED Dubai. Right now, we’re also in a closure phase of signing with several more to ensure our spread across the entire UAE business footprint.” How would you define Etisalat’s core message and USP for the SME sector?

“We are the provider of choice for SME customers here in the UAE. We always see the measure of our success as being how we are perceived by our customer base - it really is as simple as that. “The general message of Etisalat is ‘To extend people’s reach’, and we promise the same for the SMEs. Our promise is to work with them with the maximum possible energy and provide them with full transparency. Enabling and empowering SMEs is our core message - and to do this we go to great lengths to understand the market and its requirements. For example, we hold quarterly customer reviews and ask for feedback across every aspect of our service provision: our objective is to meet this feedback and its conclusions with a commitment to continuous improvement.

SME life ‘Within the Cloud’ Softwareas-a-Service (SaaS) Development platform/environment included. eg. Windows/.NET, Linux/ J2EE,applications of choice

Operating environment largely irrelevant, fully functional applications provided, eg. CRM, ERP, email

Platform-as-a-Service (PaaS)

Infrastructure-as-a-Service (IaaS)

Virtual platform on which required operating environment and application can be built on top of. Include storage as a service offerings eg. Amazon EC2, Rackspace etc.

Rebuilding your datacentre strategy A recent Etisalat whitepaper examined key datacentre strategies available to today’s IT decision makers, and offered top advice on what businesses need to consider when opting for a datacentre services provider. Here, we offer an overview of Etisalat’s comprehensive raft of datacentre services:

Etisalat Hosting Services

Etisalat offers a colocation service in which customers rent physical space in the datacentre premises. This is supported by a 24x7x365 service desk for operations and monitoring. Additionally, should it be required, Etisalat offers a remote hands service in which its onsite support staff will perform tasks on behalf of the customer that require physical server access, such as loading and removing tapes and CDs and physical server reboots.

Etisalat Managed Hosting Services

Etisalat’s managed hosting services provide operational management for infrastructure hosted in its datacentres. This includes installation and basic configuration of the equipment, installation into racks, cabling, basic network configuration, and management. As with its basic hosting services, the remote hands service is available to managed hosting customers.

Etisalat Managed IT Services

Etisalat offers a suite of managed IT services that complement its hosting services. These include: Managed Infrastructure

Services, Managed Security Services and Managed Application Services. In addition, Etisalat provides managed services that include designing and implementing backup, storage, security, network, application, and system administration services. All of its managed services can be backed by stringent service-level agreements if required.

Etisalat Disaster Recovery

Etisalat offers a disaster-recovery service that provides operational continuity and protection of critical systems, data, and communications. These are highly scalable hosting services with redundant multi-gigabit connectivity that can support complex disaster-recovery needs.

Etisalat Business Continuity Hot Seat

Etisalat provides hot-seat services that complement its disaster-recovery services. These allow workplace continuity by supporting complete staff relocation. It also provides permanent office space for customers that require their own onsite IT staff.

Etisalat Cloud IaaS Services

This cloud portfolio will be positioned as a universal cloud IaaS platform built on what Etisalat describes as state-of-the-art dynamic infrastructure and network, server, storage, security, applications, and services resources. These will be fully automated scalable services that can be provided on demand based on subscription.

Strategic SME Partner

Empowering growth, extending reach A power dialogue for supercharging SME performance Courtesy of Etisalat - leading telecom company in the Middle East and Africa

ow can an SME communicate effectively with its customers, maximising the use of cost-effective technology? How can businesses unleash and re-align the rich information at their disposal and use it in fully targeted ways? How can your company develop fresh and inspiring solutions that are practical, realistic and easily applicable to the challenges facing an SME? Now, one of the region’s best-regarded communications specialists - Ayman Ibrahim El Dessouky, Chief Sales Officer, Etisalat - is leading a keynote Round Table event that clearly outlines the principles and processes of empowering growth. Putting in place the building blocks that business owners and directors can take away and immediately apply to their own challenges and business objectives. What’s more, you’ll hear the views of key professionals gathered around the table: captains of industry, SME champions and personalities with a proven record of business success. What do they think of as the best and most practical approaches to effective communication? How will they interact with Ayman Ibrahim El Dessouky’s vision of growth and powerfully extending reach? Free to attend - and starting with coffee, light breakfast and networking - this is a keynote event, taking place in the stunning venue of the Ritz Carlton, DIFC from 8:00am, January 28. The session promises to • Propose fresh, imaginative and inspirational approaches to driving your business forward.

• Explain and assess key issues like mobility and the new multiscreen culture - how they can leverage dramatic change in your SME. • Leverage better and more effective ways of extending your communication and sales footprint. • Have extremely practical benefits, with portable ‘modules’ to apply to your own business and how it works. • Give the means to overcome ‘brick wall’ challenges when traditional approaches have resulted in a dead end.

The most professional solutions Etisalat is the region’s leading telecoms provider and a key innovator in the provision of bespoke, advanced and costeffective communications platforms for the SME sector. From pioneering the use and application of Cloud technology to providing the most effective business devices - transforming everyday business capabilities - Etisalat is recognised as a business with a powerful tradition of building key partnerships across management, government and communities.

This is a high-profile and extremely relevant event for business leaders, with a limited audience capacity - please register now to enjoy a stimulating and productive Round Table dialogue.

January 28th 2014 Ritz Carlton, DIFC

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January 2014

Getting Finance

Credit – do you trust you will be paid? For this month’s getting finance column, we approached one of the top finance experts in the region – Andy Yiacoumi, Partner, Credit Management Institute Middle East FZ LLC. Here, we ask him to address a tough, yet crucial, question – as the market starts to turn around, how should an SME approach credit?

Andy Yiacoumi, Partner, Credit Management Institute Middle East FZ LLC

January 2014

Getting Finance

s we reflect on the last five years of ups and downs you sense that the market is slowly gathering pace. We read daily lots of positive news in the media to brighten our perspective on the future. With many companies small and large having experienced significant losses, defaults , absconders, legal and many more issues can we positively say that all is well and a very different environment? With my day to day experiences in the industry I can say that whilst the mood is certainly more positive about the economy the reality is that cash reserves are still very low. Everyone wants to do business but do they have the ability to pay within the agreed terms? My general advice in the business community remains as it has always been, pick and choose your clients cautiously and you will have little to worry about. The trick though is how to find the right customers. Every potential new deal is purely potential. Until the money is “In the Bank” we face the usual risks. There is an age old phrase that I love to quote, “Prevention is better than the Cure”. Last week there was a press release about three Trading Companies that had shut and absconded. They had left many companies with “Bounced Cheques”, all persons have disappeared and they will never be found. They had absconded with millions left unpaid. I had predicted back in October that these three companies would do this and of course I was right. My own clients had requested Credit Assessment reports on these 3 companies. With our assessment I clearly stated “High Risk of Default, potential fraudulent activity; do NOT offer any Credit Terms at all”. So, how do you, as an SME, avoid such potential problems with defaulters? You need to have a simple process so that when you are out marketing your company and service you have a system of gathering information from the potential clients and reviewing them individually. You should also seek an external assessment and once you have collated all the necessary information you will then decide on any if at all credit terms. There is no magic formula to avoiding bad debt but if you have a basic process in place then at least you will be in a position to make a qualified judgement on who you should be offering credit to.

You need to have a simple process so that when you are out marketing your company and service you have a system of gathering information from the potential clients and reviewing them individually. The true meaning of “Credit” is “To Trust that you will be paid”. You need to be as sure as you can that if you do offer any credit terms, you have the highest possible chance that you will actually be paid for your work. Do not be afraid to say no if you don’t feel right. In a competitive world the problem is that most will say yes to any deal and just hope and pray that they will be paid. When I state this to companies I always receive the same response, “I can’t afford to lose the business”. That’s fine but can you afford

to sell your product on Credit which you have already paid for in advance, and then never be paid? As an example the cost to you as a business is 10 times what you have lost in one unpaid invoice. So if that invoice value was 50,000 AED then then you will have to make sales to the tune of 500,000 AED to break even on the loss of 50,000 AED. A few losses such as this example can lead to business failure. One of the main reasons why SME’s fail is because they run out of funds. To avoid being one of those statistics there has to be a cultural change from within on whom you do and don’t do business with. Over the next three months, Credit Management Institute Middle East FZ LLC (CMI) will be running a series of workshops which will address all of the above in greater detail and provide the tools required to ensure you have the processes in place for the fundamental aspects of Credit. For further details on how CMI can assist with the above please contact us directly for a consultation. For an online version, please visit:

www.smeadvisor.com/2014/01/creditdo-you-trust-you-will-be-paid

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January 2014

Workspace

As you like it Different types of business have very different needs when it comes to the style of office space that’s right for them. While a financial institution may need specialist routing for its trading platforms and faces a raft of security issues, a general trader may need very specific office support and personalised interior decor to set them apart from the crowd. SME Advisor spoke to Servcorp, the world leader in serviced office provision, about the key role that a serviced office can play in giving your business competitive edge - the optimum environment in which to grow, prosper and build market share…

onsider this. It’s often forgotten that one of the challenges facing a business when it moves into new office accommodation is creating an infrastructure that best suits its needs and activities. ‘Inheriting’ a bland office not only requires an investment in basics such as customising wall coverings and furnishings, but evaluating some of the real operational essentials - eg, the logistics of how the IT facilities can best suit the needs of your sector, or whether the telecoms capabilities can handle your diverse team requirements? Or, how to find highlytrained office support staff who can turn their hands to database management just as effectively as they can pristinely represent your business at reception? All of which involves two key challenges: time and cost. Will you be able to tailor the environment to your needs without endangering the launch date of your operations (because you certainly won’t be doing business from Day One)? Plus, will you have to compromise your intentions as a result of the sheer costs involved? The facts…

These are serious issues because when it comes to the hard business facts, the statistics show that especially for relatively young SMEs, unexpected costs and delays can prove extremely hard to recover from – and indeed, may

lead to the business disappearing for good. According to Dubai SME, for example, about 15 per cent of all SME start-ups fold up in the first two years not because of cashflow issues or lack of competitiveness, but due to unexpected causes of business interruption;. These are precisely the reasons why the leading providers of serviced office accommodation believe that the serviced solutions they offer are financially preferable. Servcorp’s offer is a classic example: it can actually be tailored specifically to meet the very divergent needs of key industry sectors, adding value to crucial operational areas that would be ‘hotspots’ in the sourcing and fitting-out of a conventional office. The following examples show the benefits that serviced accommodation can bring across a spectrum of very different corporate agendas. Meeting the needs of Financial institutions

One of the challenges that every style of financial institution has in common is the overriding need for security, given that the business rests on holding huge amounts of confidential data. In conventional leased offices, this can be a major concern, requiring additional expertise and a variety of structural and personnel upgrades. The serviced office, however, brings considerable advantages. For example, in the case of Servcorp premises, there is 24-hour security

Especially for relatively young SMEs, unexpected costs and delays can prove extremely hard to recover from.

January 2014

Workspace

on the main lobby door, allowing access these staff are highly experienced, and generally require extremely sophisticated to visitors only with an official staff will be knowledgeable about your key telephony - and a serviced office context pass or if there is a confirmed business activities, like database management and can offer considerable cost savings, appointment. There is also CCTV on each how best to profile, set up and manage a especially when sourcing international floor, continually monitored and taped. key promotional campaign. candidates. For example, you can reap When staff are not at work, office doors Rather than have to hire staff according all the access benefits of a huge global are locked and only the client company to budget - who may or may not have the network, but with local call costs. You has access. This ‘zoning’ approach to experience and skillsets you require - in can have a candidate phone call ring security - where there is added security the serviced culture receptionists answer at different devices and switch from inside an already secure premises - is of phone calls in exactly the way you want interviewer to interviewer; or show the type most highly recommended by them to. So they can announce your incoming candidates a video of your business’ (or divisional) name, or re- services while they wait in reception. risk management specialists. Another factor for financial concerns is route calls to your mobile or a preferred Probably no other style of business an extremely high level of IT facilitation - out-of-office number. Your call signature has such a consistent need for meetings indeed, this is the ‘make or break’ element can be amended or updated with a simple facilities as an HR company; and Servcorp, in the equation, supporting online e-mail, ensuring a solution that’s in touch for example, lets you rent an office for a day trade across private and institutional with the changing face of the business. where you can conduct all your interviews. transactions alike. Servcorp offices Or alternatively, choose a suite where provide - as standard - very fast internet candidates can take a test in an outer room connections with a worldwide average and then be called through to the interview uptime of 99.98 per cent. Moreover, The great majority of area. You can even go to a different country whenever it’s required, there is 24-hour SMEs in the GCC fall to conduct interviews and be sure to have a IT support, backed by fully international convenient, city centre location that’s easy into the category of resources - so even if, for any reason, an IT for all your prospects to reach. technician cannot be sourced from your ‘general trade’ - but if One of the advantages of having expert locality, expertise is only a phone call away this is your business, support teams is that you can effectively and can be swiftly brought in from another you know only too be a ‘one man band’ and use the support city. What’s more, this is true support, not staff to do the meeting and greeting for you simply help for ‘firefighting’ - it’s every well that your needs - creating the most professional perception bit as available for set-ups, upgrades and are anything but of your services. There are other benefits, general enquiries. too: highly qualified staff are on hand general. It’s also worth mentioning that a to help you sift through CVs and filter higher level of system customisation is out anyone who has ignored the basic available if required. Intense security requirements of the job advertisement. concerns and your company protocols Another factor that’s often overlooked These factors can contribute to dramatic may necessitate working via a specialized - but which is crucial to a general trading cost savings, and remember, if you’re an server, demanding re-routing of cabling business - is that, in a Servcorp building, SME without a large staff resource, you and lockable access to server cabins - the Post Office delivers mail daily. The can simply pay ‘pro rata’ for this support again, a perfectly deliverable requirement. support team then stamp it with the date as and when you need it. received and deliver it to your door (you The reality is that the serviced office Working with a Trading entity can also have your mail delivered to an solution offers a package that has been The great majority of SMEs in the GCC fall address of your choosing). evolved - courtesy of a large organization In terms of physical office space, you with global resources - to fit the needs of into the category of ‘general trade’ - but if this is your business, you know only can decorate the interiors of offices as very specialized industries and therefore too well that your needs are anything but you please, creating a distinct personality give all SMEs an even playing field. This is a general. For example, aspects such as and brand that leverages a crucial style of package that cannot be assembled international calls, the need for precision- differentiation from competitors. You will piecemeal for comparable value, and direct marketing, high volumes of paper- also find access to meeting facilities and while it enables SMEs to budget according based correspondence and a multi-lingual board rooms whenever you need them, to their needs, it also helps avoid the threat demographic all put the emphasis very including on an international basis - you of ‘hotspots’ resulting from inappropriate much on the need for highly-trained can simply check availability before you premises and the concomitant delay in support teams. With the serviced office set out, and book ahead, or book ‘on the putting things right. solution, the ready availability of PAs go’ via the Servcorp app. and receptionists means that there’s For an online version, please visit: simply no need for a lengthy quest to Solutions for HR businesses www.smeadvisor.com/2014/01/as-yousource office managers - what’s more, HR operations are distinctive in that they like-it/z

your partner for all business matters in UAE

aboutus

NEXUS BUSINESS SERVICES was set up with the sole purpose of providing a ‘one stop shop’ for anyone wishing to establish their business or relocating in the United Arab Emirates. As a 100% UAE national owned company, our aim is simple: To allow new entrants to concentrate on their business plan, while we clear a path with streamlined processes to obtain licenses, visas and related services. By eliminating the time-wastage in company formation in UAE, Nexus allows you to take full control of your business from day one. Through professionalism, unique contacts and a partnership approach to our clients’ businesses, we have achieved clear leadership. Our loyalty to our clients and commitment has proven our dedication to fulfill all their needs.

Our PRO services include: • Providing a National Agent or Silent Nominee Shareholder to satisfy foreign ownership restrictions. • Ensuring you retain 100% management and shareholder control of your business. • A PRO (Public Relations Officer/Government Liaison Officer) to submit your application to incorporate a business with all necessary government authorities, including Freezones Authorities. • Obtaining residence visas and labor cards.

Relocating with your business or family can be a daunting experience. Nexus provides a firstclass relocation service that is tailor-made with the client in mind. We can help with as little or as much as you need. Many of our service partners offer a corporate discount to Nexus which is passed directly to you, thus helping you save money along the way.

We are happy to provide assistance with any of your relocation needs including those listed below: •

Arranging medicals etc. - We can arrange all the necessary formalities you need to cover in order to get your residence visa, work permit, etc. Residential and commercial property search

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We will view villas, apartments and business premises on your behalf and provide you with a fully comprehensive list of all suitable properties for your consideration including photographs, dimensions, rental costs, lease details and comments. We will then make arrangements for you to view any or all of your chosen properties on your arrival in UAE and accompany you to the viewings (or negotiate the lease with the employer in UAE so that it is ready for your arrival). We will liaise with landlords and real estate agents and negotiate tenancy contracts on your behalf.

January 2014

Workspace

Your starter for

Sales & Marketing initiatives are fundamental to making sure a business keeps moving forwards, builds market share and sustains its cashflow. Here are 10 top tips that are practical, easy to implement and highly affordable. Start putting them in place today!

Make your website mobilefriendly so your customers on-the-go can easily access your information if they need it.

January 2014

Workspace

Know your client

Be alert to details that matter to the client and recognise what makes each client unique. The reality is that your brand promise hinges on staff knowing what’s distinctive about their clients and working proactively to sustain a positive relationship with each one. Tell your clients all the things you’re doing for them (some of which they might not know about) and always make a point to ask them questions about their business.

Build a client network

Ask key clients for their permission to include a link to their websites on your own business’s website. They are likely to agree wholeheartedly and will also appreciate your loyalty to them, which should help you bond still further. Also, reference their work and skillsets across your raft of further client communications.

Be mobile friendly

Make your website mobilefriendly so your customers onthe-go can easily access your information if they need it. It’s a great idea to create enriched and animated content that your customers can access with a bespoke app.

See it from the customer’s point of view

Put yourself in the customer’s shoes. Think: “If I were them, what questions would I ask – and what reassurances would I need to put any concerns at rest?” Use this simple test to evaluate if what you’re doing now is really customer-friendly enough.

Make your clients your valued friends and contacts

Stop speaking the same old story about product and price. Making friends with your customers is a very good route to ensuring they become your best clients. When you are arranging conferences, seminars and presentations, invite them to take part - and you will never be short of quality contacts.

Measure feedback and opinion

Measure customer sentiment with social media - not just negative, but positive, too. If your customers are singing your praises,

use that to tell more people about your business’ excellence and get some real marketing traction from it.

Promote Your Website

It’s amazing how many businesses forget to promote their website. It should be prominent across all your marketing activities. This could include business cards, brochures, e-mails and social media. Basically, anywhere you have your agency logo, your URL should be there, too.

Don’t always meet: share!

It’s not always possible to get an in-person appointment. Using easy-to-use screenshare technology such as Join.me is a good way to share a presentation; or alternatively, you can go through your website while you’ve got the prospect or client on the phone. This is a good tactic because it positions you as the client’s VVIP guide.

Strategize

All marketing needs a strategy and a goal. Aimless marketing is ineffective and costly. For example, you want to post a banner?

Send an email to a list? Start a newsletter? Good activities, but have you got a solid reason for doing them and have you evaluated what you want to achieve?

Believe in Your Brand

Passion is contagious. If you don’t believe in your brand, no-one else will. Let everyone - including clients and competitors - know why your SME is the best. You’ll be much more likely to generate genuine enthusiasm, which will in turn make your business the first on everyone’s lips and drive more customers to use your services. Make these 10 tips your sales and marketing mantra. Test yourself on how many times a day you’ve actioned any or all of them. It’s also a good idea to remember one more – “As an average in the SME sector, it will take three months to generate a piece of new business - so if you’d started 10 weeks ago, you’d be getting ready to celebrate.” For an online version, please visit:

www.smeadvisor.com/2014/01/yourstarter-for-10/

January 2014

Workspace

Security for startups and small businesses – part of the plan, not an after-thought When entrepreneurs decide to start their own business, they are focused almost entirely on the product or service they provide, and how they can sell it to customers. The rest of their attention goes into dealing with business logistics – finding an office or production space; completing tax registration forms; investing in computers for employees, etc. One item that is typically neglected during this frenzied period of activity is IT security. Here, we speak to Kaspersky experts about the key steps that help secure a business from the potential dangers of cybercrime.

y the time a very small business decides to address IT security, it’s typically because they have already become a victim of cybercrime, or because the business owner saw a news report about malware stealing credit cards from business and panicked while wondering if this could happen to his own business. In either scenario, IT security then becomes an urgent priority while employees scramble to find the right solution. Also, if a small business waits until a malware infection forces it to properly address security, it may already be too late. If malware causes a small business to shut down, or even prevents it from operating properly for even a day or two, the lost revenue opportunities and costs of cleaning up the infection can equal tens of thousands of dollars. In many cases, this could be enough to drive the business to bankruptcy.

By adding basic IT security measures into the startup plan, entrepreneurs can save themselves time, money, and aggravation down the line, and protect themselves from malware that could cause enough damage to drive the company out of business. Kaspersky Lab experts give some guidelines to follow when first setting up the IT network of a “very small business,” which is usually defined as a business with fewer than 25 employees. Employee education is essential while special products such as Kaspersky Small Office Security, designed to meet the specific needs of very small businesses, accounts for most of these suggestions by default and makes it easy to get a new business up and running securely. Step one: Take inventory

New businesses almost certainly won’t have an in-house IT expert, but at least their IT inventory

January 2014

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is small enough to be managed with relative ease. Make a simple Excel list of all laptops and workstations, as well as servers and routers, in the business. This list should also include notes for all the business-critical applications used on each machine. Step two: Assign priority

On this new list of equipment and applications, add notes to define the tasks that each particular machine performs, and how dependent your business operations are on each particular task. Give the most vital pieces of IT equipment a Category 1 rating, while machines that perform less critical functions can receive a Category 2 or even Category 3 rating. For example, for a business that primarily conducts online sales, the e-mail server is a Category 1 piece of equipment. For store-front businesses, the point-ofsale “cash register” computer becomes Category 1. Ideally, no more than half of the total computers in the business should be Category 1. The goal of this step is to increase internal awareness of all the computers and programs that the business relies on, and to keep track of any future additions or changes. If budget is an issue, make sure Category 1 machines receive spending priority.

requires strong anti-malware protection. More importantly, backing up the data on this server becomes vital. Ensure an automated data backup task is scheduled on a daily basis. These backups can be saved to another server, an external hard drive, or to a cloud repository. By taking the time now to configure a daily automated backup task, these backups could save the business in the event of an IT disaster in the coming years. Step five: Protect your PCs…

The computers used every day by employees are obviously the backbone of the business, and owners should invest in their protection accordingly. Modern

For many small companies the firewall will be included in the Internet router, so owners should check with their Internet Service Provider to ensure the firewall is properly configured.

Step three: Protect the perimeter

Here is a very basic step that still must not be overlooked - ensure the business has a functioning firewall, which can block malicious web-traffic from entering the network, and can stop thieves from smuggling data to outside the network. For many small companies the firewall will be included in the Internet router, so owners should check with their Internet Service Provider to ensure the firewall is properly configured. Step four: Protect your data where it lives – the File Server

Once a business has several employees collaborating on documents, it makes sense to have a small file server - Windows Small Business Server 2011, or dedicated PC used just for storage - so information can be centralized and accessed by all. But with all the data on a file server, the server becomes critically important and

malware can evolve over the course of a few hours to defeat simple anti-virus scanners, and business owners would be wise to seek a full security suite with multiple layers of protection. This includes features like proactive detection capabilities and application controls. It’s also worth to include a password manager program on employee computers, which stores their passwords in an encrypted vault and automatically enters the passwords when prompted. It’s much better than having company passwords written down on pieces of paper next to a computer. Step six: …and your Macs and Androids

It’s important to include non-Windows machines in the business security strategy as well. For example, if the business uses a Mac for graphic design, it needs the same umbrella of protection

provided by the network firewall. Owners would also be wise to install a security program on the Mac itself, since Macs can actually become warehouses for PC malware and spread infections across the office, or worse, to customers. Also, if employees plan to access business documents from their smartphones or take documents to go on their tablets, make sure those mobile devices have some sort of anti-virus and anti-theft program installed. That way, if the phone ever gets lost, employees can at least remotely wipe the business information from the missing device. Step seven: Monitor it all centrally

With the foundation of IT security now built into the business’s network perimeter, file server and endpoint machines…how does the owner keep track of it all? Ideally, this protection will come from a single security solution - such as Kaspersky Small Office Security - that protects all the pieces of the business, and lets owners view the security status and product license information of every machine in the office, all from a single screen. Kaspersky Small Office Security also comes ready with a desktop firewall, password manager, file server protection and data encryption, and allows owners to enforce web usage policies from an easy menu. For example, owners can prevent employees from accessing social networks on company machines with a few mouseclicks…no advanced IT degree required. Remember, complexity is the enemy of security, so if you can get a single security solution to do it all, your business will be less complex and more secure at the same time. With these core protection elements in place, IT security won’t need to be cobbled together frantically and expensively as the business grows over the years. More importantly, business owners can feel safe that their life’s work and the data of their customers are protected, and they can get back to focusing on the reason they opened their own business in the first place. For an online version, please visit:

www.smeadvisor.com/2014/01/securityfor-startups-and-small-businesses

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December 2013

LEGAL

The New ADCCAC Procedural Regulations:

a new dawn for arbitration in Abu Dhabi?

It is vital that companies entering into official arbitration proceedings are fully conversant with the new procedures and requirements, which represent a significant shift in emphasis from the existing protocols, especially in areas such as confidentiality and the inclusion of fees. SME Advisor is delighted to present the following guide to this potentially complex territory, courtesy of Richard Bell, Partner in Clyde & Co.’s Middle East Dispute Resolution team, and James Fox, Senior Associate Middle East Dispute Resolution Group, Clyde & Co.

n Q3 of 2013, The Abu Dhabi The change is significant for any business Commercial Conciliation and that has entered into or will enter into a Arbitration Centre (ADCCAC) contract where the dispute resolution announced its new Procedural mechanism is the ADCCAC Regulations Regulations of Arbitration (the Regulations), - often the case where one party is an Abu and these took effect from 1 September Dhabi company. Below, we briefly consider some of the 2013. This was a welcome move, and now that we have some experience of actually key amendments and also highlight some working with these reforms, it is a good of the potential issues that we foresee with time to revisit the exact content of what the Regulations. has been put in place. Few will mourn the passing of the old Streamlined Procedures regulations and the good news is that The Regulations represent a clear intention the Regulations represent a significant to streamline the ADCCAC procedures. In improvement, drawing on various sources particular: including the UNCITRAL Rules but with • What constitutes proper notice of some distinct features. arbitration has now been clearly set out

and the Regulations deal with how to proceed if it is impossible to give notice. • The provisions dealing with the request for arbitration represent a significant improvement The Regulations set out exactly what is required and the list is comprehensive. Parties must now properly consider their claim and relief prior to commencement. • Power has been expressly delegated to the Director of ADCCAC to impose fixed deadlines if, for example, a Respondent fails to submit a response to the Request for Arbitration. • In the event the parties do not each nominate their party appointed arbitrator (or the parties are not able to agree a

sole arbitrator) within a maximum of 14 days from the date of the Request for Arbitration the Director shall “take charge of the matter” and in the case of a sole arbitrator appoint that arbitrator. • There is no longer a requirement for a meeting to commence the arbitration and “pleading sessions” are not mandatory. It is conceivable that arbitration before ADCCAC can now be run entirely on papers. All these modifications potentially offer a more efficient and streamlined service to users of ADCCAC. Provisional and Precautionary measures

The Regulations introduce provisional and precautionary measures. They allow a Panel to order that goods that are at risk of being disposed of by one party are entrusted to a third party for safe keeping, or perishable items be sold and the sums from the sale be deposited with ADCCAC pending settlement of the dispute. Further, the new regulations specifically permit the Panel to make provisional (interim) awards. This is a welcome change. Confidentiality

The old regulations were silent on the matter of confidentiality. The Regulations expressly provide that the Award, all materials and documents, expert reports and witness statements, records and all procedures will be held confidential unless agreed upon in writing by the parties or required by law.

language adopted in the conduct of the arbitration proceeding. We are aware of issues caused by the similar provision in the previous regulations where Panels had produced their awards in English and the award was only subsequently translated

The Regulations expressly provide that the Award, all materials and documents, expert reports and witness statements, records and all procedures will be held confidential unless agreed upon in writing by the parties or required by law. into Arabic prior to enforcement. The Regulations make it clear, as was the case with the old regulations, that the Panel must produce an Arabic award in addition to the award in any other language. Settlement

The Regulations allow for the terms of a settlement reached between the parties to be issued as an award by the Panel. Such an award will have the same binding force as awards adjudicated on by the Panel.

Arbitration Panel fees

Waiver of rights

In a move that is likely to be welcomed by arbitrators the new regulations contain a table of fees similar to that of the ICC rules.

If a party is aware that a provision of the Regulations has not been complied with and yet continues the arbitration without objecting he will deemed to have waived his right to object. This is a sensible addition as, in the past, it was not uncommon for a party to choose not to raise procedural errors in order to retain grounds to apply for nullification at the enforcement stage. Whether this will reduce nullification applications in practice remains to be seen.

Exclusion of responsibility

Another change that will be welcomed by arbitrators is the express provision that arbitrators, ADCCAC and its staff and Tribunal appointed experts shall not be held responsible towards any of the parties (or third parties) and for any action, act or inadvertence in relation to the arbitration taken in good faith.

where arbitration is currently in process. It remains to be seen what challenges will arise as a result. Conclusions

In summary, the changes to the rules are extensive, welcome and in many cases represent modern best practice. In combination with the fact that Abu Dhabi government contracts often contain ADCCAC as their dispute resolution mechanism, this should help to boost confidence in ADCCAC amongst users. We will be producing a more detailed update in time for our forthcoming Middle East Arbitration Roadshow in Doha, Abu Dhabi and Dubai on 30 September 2013 to 2nd October 2013. About the authors

Richard Bell, Partner Richard is a partner in Clyde & Co’s Middle East Dispute Resolution team; his main areas of practice are commercial litigation, arbitration and alternative dispute resolution. Richard has acted for clients in a wide variety of commercial arbitration claims and court proceedings both in the UAE and in foreign jurisdictions. Richard’s approach is to focus on his clients’ commercial needs and devise strategies to meet those needs. As litigation and arbitration can be expensive and time consuming, he will always consider alternative methods of dispute resolution and has settled numerous cases through mediation and negotiation. James Fox, Senior Associate James is a senior associate in Clyde & Co’s Middle East Dispute Resolution Group based in the Abu Dhabi office. James has extensive experience in resolving complex, high value disputes under the auspices of the Abu Dhabi Commercial Arbitration Centre (ADCCAC), London Court of International Arbitration (LCIA) and the International Chamber of Commerce (ICC) and before the Abu Dhabi and English courts. James specialises in dispute avoidance, arbitration, mediation, settlement negotiations and litigation.

Transitional Provisions Language of the proceedings

The Regulations require the Panel to deliver its award in Arabic in addition to any other

The Regulations will become effective from 1 September 2013. They will apply to all arbitrations after that date, even

For an online version, please visit:

www.smeadvisor.com/2014/01/the-newadccac-procedural-regulations/

January 2014

INDUSTRY WATCH

UAE Stock Market trends A study carried out by Dubai Chamber of Commerce and Industry stated that major UAE stock exchanges such as the Dubai Financial Market (DFM), NASDAQ Dubai and the Abu Dhabi Securities Exchange (ADX) play a crucial role in attracting investments into businesses whose stocks are traded on these exchanges.

he study reported that the UAEâ&#x20AC;&#x2122;s strong economic growth has been accompanied by growth in value of stocks traded on the UAE stock exchanges. The value of stocks traded on the Dubai Financial Market (DFM) in the year 2000 was about AED 437 million, while in the first three quarters of 2013, it shot up to AED 107,863 million. Highlighting future investment opportunities, the research said that stocks remain a major source of investment returns for long-term investors; they have the option to find potentially lucrative investments through DFM in sectors ranging from telecommunications to consumer staples. The study also added that investment in equities contain some risks such as the risk that interest rates increase in major economies over the long run, which may increase the cost of credit for businesses. Another risk is a correction in the major global market indices, which may lead to reduced stock prices. Company specific risks include increased competition from other businesses and changes in the ability of businesses to grow by increasing their sales and profits. A great way to manage these risks is to buy stocks in a diversified portfolio of quality companies when their prices are low, for example after a market correction, and invest with a long-term horizon. Diversification will help mitigate company specific risks and buying

Companies that are consistently successful in gaining market share and which remain focused on their area of expertise could be sound long-term investments.

stocks when prices are low will help reduce the impact of future corrections due to rising interest rates or a global economic downturn. Companies that are consistently successful in gaining market share and which remain focused on their area of expertise could be sound long-term investments. Lastly, holding a cash buffer could also help investors take advantage of market corrections to buy quality businesses at lower prices. Finally, the study also shed light on the significant role of SMEs within the market. Given the fact that SMEs are an important part of any economy, itâ&#x20AC;&#x2122;s crucial to ensure that they can easily list their shares using IPOs. Promoting the growth of SMEs in this way could therefore help in the economic growth of the UAE.

Industry INSIGHT: Mining companies Deloitteâ&#x20AC;&#x2122;s recent report stated that mining companies will have to overcome several challenges in 2014 including rising costs, falling commodity prices, supply-demand imbalances and decreased productivity levels.

he report â&#x20AC;&#x201C; Tracking the Trends 2014 â&#x20AC;&#x201C; stated added that innovation will play a key role in tackling these major issues. It suggested that companies need to adopt more innovative strategies in order to mitigate risks of a volatile industry. The top 10 trends and solutions detailed in the report are: 1. The cost of contraction: To reduce costs sustainably, miners must improve their overall productivity, strengthen their management and reporting systems, use analytics to uncover their underlying cost drivers, and rationalize their supply chains. 2. Matching supply to demand: Ongoing global economic weakness and the short-term decline of demand out of China has pushed down commodity prices, resulting in industry performance dips. However, long-term demand indicators remain robust. Rather than mothballing projects, miners should find ways to weather current supply/demand imbalances. 3. The remaking of mining: Miners should innovate by adopting technologies to enable mine design and planning, energy supply, as well as adoption of emerging technologies. 4. Finding funding: Weak shareholder returns and industry impairments have shut off equity markets. Traditional lenders also are pulling back from the

mining sector. Although major diversified companies responded by issuing bonds, juniors have been hard hit. This may represent an acquisition opportunity for mining companies with large cash holdings. 5. The project pipeline stutters: In response to demands from investors and analysts, mining companies developed massive project pipelines. Investment in marginal projects, however, has led to record asset impairments. To turn the tide, miners need more robust project scoping processes, governance systems, and risk control mechanisms. 6. Power to the people: Social media trends and attention from monitoring and standardsetting bodies put corporate reputations and market valuations at risk. Miners should take a nuanced approach to stakeholder relations, including developing local supply bases, improving communications, sharing infrastructure among various economic clusters, and sourcing local labor. 7. Resource nationalism spreads: Mining companies must improve government relations and governments need to foster greater regulatory stability. Miners should open a dialogue by forming policy development lobbies, coordinate local infrastructure projects, engage citizens, and negotiate with all levels of government. 8. Crackdown on corruption: To improve compliance, mining companies should adopt appropriate internal controls and policies, engage in compliance audits and risk assessments, and upgrade their systems to support sufficient reporting detail. 9. Changing the safety equation: Mining companies need a more sophisticated approach to safety analytics. Companies should model high-risk events, re-examine their workplace practices, and break down the data silos that prevent them from accurately identifying safety incident patterns. 10. A dearth of skills: Closing the gap requires the adoption of new talent management strategies. Miners should standardize systems and embrace new training environments.

January 2014

INDUSTRY WATCH

Top concern – Reputation risk A recent Deloitte survey – Exploring strategic risks – mapped the progress of companies in managing the risks impacting their business strategy. per cent) and slightly lower in Europe/Middle East/Africa (EMEA) (91 per cent). • 49 per cent of EMEA companies describe their risk management programmes as inadequate and 91 per cent of EMEA companies have changed their approach to strategic risk management. • Reputation risk was listed as the biggest risk concern, due in large measure to the rise of social media, which enables

Managing risk effectively has always been a touchstone of the most successful companies. But in today’s risk-filled business environment, it can be hard for executives to have confidence that their plans and strategies will play out as expected.

he survey revealed that 81 per cent of respondents had an explicit focus on managing strategic risk with reputation cited as the topmost concern. Additionally, only 13 per cent of respondents indicated that their risk management programme supports their ability to develop and execute business strategy. “Managing risk effectively has always been a touchstone of the most successful companies. But in today’s risk-filled business environment, it can be hard for executives to have confidence that their plans and strategies will play out as expected,” said Fadi Sidani, Enterprise Risk Services Leader at Deloitte Middle East. “A big reason is that strategic risks – those that either affect or are created by business strategy decisions – can strike more quickly than ever before, hastened along by business trends and technological innovations such as social media, mobile and big data.”

Key highlights of the survey:

• Strategic risk has become a major focus, with 81 per cent of surveyed companies now explicitly managing strategic risk – rather than limiting their focus to traditional risk areas such as operational, financial and compliance risk. • Nearly all respondents (94 per cent) have changed their approach to strategic risk management over the past three years. The numbers were slightly higher in Asia/Pacific (96

instantaneous global communications that make it harder for companies to control how they are perceived in the marketplace. • Strategic risk management is a CEO and board-level priority. Two thirds (67 per cent) of the surveyed companies say the CEO, board or board risk committee has oversight when it comes to managing strategic risk. • 53 per cent of respondents believe technology enablers and disrupters such as social, mobile, and big data could threaten their established business models, and 91 per cent have changed their business strategies since those technologies began to emerge. • The top strategic assets that businesses will need to invest in in the coming three years are human capital and innovation. “In response to these issues and trends, companies are making a deliberate effort to improve their strategic risk management capabilities and performance. Companies are now using strategic risk management as a tool to make decisions with more confidence and create greater business value,” concluded Sidani. The survey analyzed the responses of more than 300 senior top management and board members, representing all major commercial sectors and all geographical regions across the world.

INDUSTRY WATCH

SMARTWORLD'S 'BIZPARK OFFERINGS' The ICT service provider – Smartworld – launched a new service for businesses setting up operations in a free zone in the UAE.

martworld’s ‘BizPark Offerings’ solution offers a raft of startup services including:

• Phone & Internet Connection • Quick on boarding process and act as SPOC for vendor management • Cabling and IT Fit out Services • Network & Security Services - ( Wi-Fi/Router/Firewall/ Switch-UTM) • VPN Services • Email Services - Office 365 variants / Hosted Exchange • Collaboration Services - Cloud - Office 365 / Google OR File Server (SBS) / SharePoint • Web Server / Web Hosting Services • Public Cloud (VPS) & Private Cloud • Laptops / Desktops - Local with OS, MS Office (prebundled OEM Office), AV (pre-bundled) OR Local with OS, MS Office (Office 365), AV • Printing & Scanning • Mobility via Smartphones / Tablets • Implementation & Support Services • ERP / CRM

Businesses have the option to take advantage of these services either as a ‘one time’ set up model or as a recurring monthly subscription services model. “As the Middle East region continues to position itself as a global IT hub and with the UAE’s preparations to host Expo 2020, we are expecting growth across all industry verticals—particularly the IT segment. With this in mind, Smartworld’s new ‘BizPark Offerings’ assures both new and potential businesses that we can meet the current and future demand within the DWC,” said Abdulrehman Ubare, Technical & Operations Director, Smartworld. “Over the years, we have enjoyed key success that can be attributed with our ability to secure smart and integrated technology-based products and services that help give our customers a strategic and competitive edge. In addition, our customers also gain other benefits and advantages like increased operational efficiencies, added business value and a reduced Total Cost of Ownership (TCO).” "Businesses today have seen the emergence of a new kind of customer – one that has become more mobile and is always on the go with a demand for services that are seamless and can be accessed on an anytime/anywhere basis. With this in mind, Smartworld depends on its technically advanced next generation infrastructure to deliver best in class customer-aware and lifestyleenhancing products and services. This helps customers simplify their lives, enables them to transact their businesses and ensures a WOW user-experience from start to finish," concluded Ubare.

As the Middle East region continues to position itself as a global IT hub and with the UAE’s preparations to host Expo 2020, we are expecting growth across all industry verticals—particularly the IT segment. With this in mind, Smartworld’s new ‘BizPark Offerings’ assures both new and potential businesses that we can meet the current and future demand within the DWC.

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INDUSTRY WATCH

Have you planned your retirement? A research released by Zurich International Life revealed that a huge percentage of residents in the UAE fall short of saving adequate amounts for their retirement.

Jawed Barna, CEO at Zurich International Life, Middle East and Africa

survey, conducted by YouGov, found that only 33 per cent of residents in the UAE had a formal retirement savings plan – other than their end-of-service gratuity. Moreover, Zurich’s research reported that 67 per cent of them failed to plan for their retirement. Zurich cautioned

It would appear that too many UAE residents are either wrongly assuming that the end-of-service gratuity or their property assets will provide enough funds to finance their retirement or, worse still, are ignoring the need to safeguard their financial future.

that the findings are concerning as lack of financial preparation will have significant impact on their future income in retirement. “It would appear that too many UAE residents are either wrongly assuming that the end-of-service gratuity or their property assets will provide enough funds to finance their retirement or, worse still, are ignoring the need to safeguard their financial future,” said Jawed Barna, CEO at Zurich International Life, Middle East and Africa. Barna said that residents in the UAE should consider prioritizing long-term planning over short-term need in order to secure the retirement they want. “Many people dream about their retirement and see it as an opportunity to spend more quality time with family, travel around the world and have more spare time to devote to new hobbies and reignite old ones. But the dream of retirement can quickly turn into a nightmare unless you have a formal financial plan or pension in place to fund the end of your working life.” According to the Zurich survey, even older respondents were not preparing for their retirement – 60 per cent of respondents aged over 40 said they did not have a retirement plan or pension in place. “It is particularly concerning that 60 per cent of UAE residents aged over 40 do not have a retirement plan. People should not wait until later in life to start planning for retirement,” added Barna. “The best financial advice I ever received was to start saving for my retirement in my 20s. It’s the best way to build up a bigger retirement fund for later in life, as you add more contributions over your lifetime and they have longer to grow. Even if you can only afford a small amount, it helps to form a healthy savings habit.”

In review: Cyber security in 2013 Kaspersky experts looked back at 2013 and reviewed some of the major developments that took place in the world of cyber security.

ne of the major highlights of 2013 was undoubtedly the rising rising concern regarding cyber security across the world. Kaspersky experts reported that the overall global Internet threat level grew by 6.9 percentage points in 2013 with 41.6 per cent of user computers facing attacks at least once. Furthermore, two countries that were identified as leading hosts of malicious web resources were the USA and Russia. This was determined by the fact that 45 per cent of web attacks neutralized by Kaspersky Lab products were launched from these countries. In terms of countries facing the highest risk of web attacks, Kaspersky experts stated that 15 countries can be assigned to the high risk group based on their risk level while surfing the Internet. Russia, Austria, Germany, several former Soviet Republics and Asian countries saw 41 to 60 per cent of Kaspersky Lab users reporting web attacks on their computers. The year 2013 also saw an increase in the popularity of mobile devices which led to rising security concerns while using mobiles. Most malicious mobile apps principally aimed to steal money, and subsequently personal data. Android remained the main target, attracting 98.05 per cent of known malware. “There is unlikely to be any slow-down in development of malicious apps, especially for Android. To date, the majority of malware has been designed to get access to the device. In the future, there is also a high probability that the first mass worm for Android will appear. Android ticks all the boxes for cybercriminals – it’s a widely-used OS that is easy to use for both app developers and malware authors alike,” Christian Funk, Senior Virus Analyst, Kaspersky Lab said.

Other highlights include:

• The number of browser-based attacks over the last two years has almost doubled to 1,700,870,654. • Kaspersky Lab detected 104,427 new modifications of malicious programs for mobile devices, which is 125 per cent more than in 2012. • Obad, probably the most remarkable discovery in the mobile field in 2013, is being distributed by multiple methods, including pre-established mobile botnets. This malware is probably the most versatile piece of mobile malware found to date, including a staggering total of three exploits, a backdoor, SMS Trojan and bot capabilities and further functionalities. This malware can be compared to a Swiss Army knife, comprising a whole range of different tools.

The year 2013 also saw an increase in the popularity of mobile devices which led to rising security concerns while using mobiles. Most malicious mobile apps principally aimed to steal money, and subsequently personal data. Android remained the main target, attracting 98.05 per cent of known malware.

January 2014

TECHNOLOGY FOR BUSINESS

Android is prime target for cyber criminals A recent survey by B2B International and Kaspersky Lab revealed that over 40 per cent of Android-based smartphone and tablet owners in the UAE don’t use any security software to safeguard their devices against potential cyber-attacks.

ndroid has remained a top target for cyber criminals due to its popularity and functionality. The survey reported that, out of its respondents, only 58 per cent of smartphone and 57 per cent of tablet owners in the UAE had installed a security solution on their devices. Meanwhile, other users are satisfied with the basic security features integrated in the OS, or they trust their own instincts to keep them safe. Potential dangers

A malicious program can

make a smartphone send text messages to premiumrate short numbers, thus stealing money from the user’s account; it can turn the smartphone into a spying device, giving fraudsters information about the device owner, including all calls, correspondence, passwords to social network and e-pay accounts, etc. In other words, all the communication, entertainment and computing capabilities of Android-based devices are just as popular with criminals as they are with regular users.

Implementing security solutions

Kaspersky Lab has developed Kaspersky Internet Security for Android, an advanced solution to safeguard popular Android-based smartphones and tablets. The solution integrates cutting-edge technologies for detecting cyber-threats based on extensive antivirus databases which receive updates within a few minutes of any new malware sample or dangerous link being identified in the Kaspersky Security Network cloud. In addition, the Kaspersky Lab product includes a set of intelligent mechanisms that can proactively detect even the newest unknown threats by monitoring their behaviour. Personal data stored on a device is protected with the help of special functions capable of hiding private contacts, calls and texts. If

New Banking Trojan Kaspersky Lab warned users of a new malicious program which infects computers used for online banking. The Neverquest Trojan banker supports just about every possible trick used to bypass online banking security systems: web injection, remote system access, social engineering, and so on. In light of the Trojan’s self-replication capabilities, a sharp rise in the number of attacks involving Neverquest can be expected, resulting in financial losses for users all over the world. Neverquest steals usernames and passwords to bank accounts as well as all the data entered by the user into the modified pages of a

banking website. Special scripts for Internet Explorer and Firefox are used to facilitate these thefts, giving the malware control of the browser connection with the cybercriminal’s command server when visiting the sites of 28 sites on the list,

your mobile device is lost or stolen, Kaspersky Internet Security for Android has a dedicated set of mechanisms that prevent crooks from accessing your personal data. The free version contains basic antivirus functionality (user-activated scanning) and all remote device management facilities. Using the integrated in-app purchase system, users can upgrade to Premium level which, in addition to the free functionality, provides advanced antivirus mechanisms, including automatic scans of every downloaded app, real-time protection from emerging threats and web protection to combat phishing attacks. The premium version also includes features to manage personal information – including the option of hiding contacts, calls, messages and their history from prying eyes.

including those that belong to large international banks - sites of German, Italian, Turkish and Indian banks, as well as payment systems. Another function helps the malicious users replenish their list of targeted banks and develop code to be seeded on new websites that were previously not on the target list. After gaining access to a user’s account with an online banking system, cybercriminals conduct transactions and wire money from the user to their own accounts or – to keep the trail from leading directly to them – to the accounts of other victims. Protection against threats such as Neverquest requires more than just standard antivirus; users need a dedicated solution that secures transactions. In particular, the solution must be able to control a running browser process and prevent any manipulation by other applications.

TECHNOLOGY FOR BUSINESS

IT survey reports key opportunities EMC Corporation reported the findings of a global survey that asked thousands of IT decision makers from 50 countries for their perspective on the challenges and opportunities that Big Data and IT transformation – and related skills – can present to their companies.

ver the last six months this research polled more than 10,700 business and IT management and executives, technical architects, data scientists and storage/infrastructure managers from a range of industries who registered to attend their local EMC Forums. The IT Transformation survey was also conducted across key markets in the Middle East including the UAE,

Saudi Arabia and Qatar where a majority of respondents reported a positive outlook to Big Data adoption and IT Transformation. • Key points of the survey were:

• 76 per cent of global respondents reported that their business believes technology investment is a strategic way to achieve its goals. • 87 per cent of respondents in the UAE, 85 per cent in Qatar and 88 per cent of

Trends for 2014 Ericsson ConsumerLab has identified the hottest consumer trends for 2014 and beyond.

Apps change society. The fast global uptake of smartphones has completely changed the way we communicate and use the internet. Now we enter a new phase of rapidlydiversifying smartphone use – and people are looking for apps across all sectors of society. This includes everything from shopping and daycare to communication with authorities, and transportation. Your body is the new password. Sites are demanding longer passwords with a mixture of numbers, letters and symbols – almost impossible to remember. This is leading to growing interest in biometric alternatives. The quantified self. Blood pressure, pulse and steps are just some examples of how we want to measure ourselves with mobile devices, using personally-generated

2 3

respondents in Saudi Arabia reported that decisions in their organisation could be improved with better use of data. The top three drivers for the transformation of IT systems and infrastructure were identified as: 1) Better business processes 2) Improved governance and compliance 3) Developing new routes to market/selling strategies

data. You only need to start an app to track your activities and get to know yourself better. Internet expected everywhere. Internet experience has been falling behind voice; smartphone users are realising that the signal bars on their phone no longer provide reliable guidance, since a signal that is adequate for a voice call may not be good enough for internet services. Smartphones reduce the digital divide. Internet access on a global scale is still inadequately and unequally distributed, giving rise to what is referred to as the digital divide. The advent of cheaper smartphones means that consumers no longer need costly computing devices to access internet services. Online benefits outweigh concerns. As the internet becomes an integrated part of our daily lives, the risks associated with being connected are becoming more apparent. 56 per cent of daily internet users are concerned about privacy issues. However, only four per cent say that they would actually use the internet less.

4 5

• 66 per cent of respondents reported that they have the correct level of skills and knowledge in place to complete their business priorities successfully. (79 per cent in the UAE, 74 per cent in Saudi Arabia and 78 per cent in Qatar) • Three quarters of respondents reported that ensuring skills keep pace with the rate of IT innovation will be a challenge for their organisations over the next three years. • A majority of respondents agreed that IT is equipped to handle the most essential business priorities – and that now, the biggest barrier to coping with business priorities is cultural.

Video on command. Despite having greater media choice, we seem less prone to choose what we watch ourselves. In fact, our friends are particularly influential when it comes to viewing video material. We found that 38 per cent of respondents say they watch video clips recommended by their friends at least several times weekly. Making my data visible. A total of 48 per cent of consumers use apps to better understand their data consumption. While 41 per cent just want to know how much data they use, 33 percent want to make sure they are billed correctly and 31 percent don’t want to exceed their operator’s data cap. Sensors in everyday places. By the end of 2016, around 60 per cent of smartphone owners believe that sensors will be used in everything from healthcare and public transport, to cars, homes and our places of work. Play, pause, resume elsewhere. As 19 per cent of total streamed time is spent on phones or tablets, consumers are increasingly shifting the locations where they watch TV to suit their daily lives.

8 9

TECHNOLOGY FOR BUSINESS

Security predictions for 2014 A recent independent global survey of 3200 IT and business decisionmakers, sponsored by EMC, identified third party access of company applications (43 per cent) and mobile access to corporate networks (40 per cent) as two of the top security concerns identified across all the respondents.

peaking against this context, Art Coviello, Executive Vice President EMC, Executive Chairman RSA, The Security Division of EMC, highlighted the top five predictions for security in 2014: 1. BYOD is so 2013. The new thing is BYOI: One of the interesting trends of the third platform has been the consumerisation of IT as companies have given employees greater latitude in accessing corporate resources and data via their own personal devices (BYOD). The next evolution of this trend will be the consumerisation of ID or identity as employees increasingly push for a simpler, more integrated system of identification for all of the ways they use their devices. Identity will be less entrusted to third parties and increasingly be something closely held and managed by individuals – as closely as they hold their own devices. 2014 will be the

The role of the CIO Epicor Software Corporation revealed the results of its new Chief Information Officer (CIO) survey conducted in the Middle East, India and Africa. The survey showed significant trends amongst CIOs who are facing new challenges as their role changes in a technologically charged environment where business

dawn of Bring (and control) Your Own Identity (BYOI). 2. The return of the insider threat: In 2014, we will see companies pay greater attention to the insider threat and take steps to protect themselves from the risk of substantial damage to revenue, brand and even business continuity. 3. The future is cloudy: Expect both public and private cloud providers to aggressively address the security of their clouds as a competitive differentiator and to stave off advancing threats to their business. Providers of cloud security should have a banner year in 2014. 4. 2014 is the tipping point year of mobile malware: As businesses provide greater mobile access to critical business applications and sensitive data and consumers increasingly adopt mobile banking, it is easy to see that mobile malware will rapidly grow in sophistication and

software solutions, like enterprise resource planning (ERP) systems, are seen as critical business enablers. Key highlights of the survey

• Speed, reinvention, agility and innovation are critical to the success of any organisation serious about optimising performance and gaining competitive advantage - a staggering 90 per cent of respondents to the survey agreed with this statement. • 76 per cent of respondents said that best in class companies perform better because of their use of business systems.

ubiquity in 2014. We’ve already seen a strong uptick in both over the past few months and expect this is just the beginning of a huge wave. We will see some high-profile mobile breaches before companies and consumers realize the risk and take appropriate steps to mitigate it. 5. The Internet of Things: The hacking target of tomorrow is the Internet of Things or the growing network of devices that sense and control realworld systems. From cars to medical devices to smart electrical grids, we will see an increasing number and growing sophistication of attacks on the Internet of Things. “While there are certainly significant challenges ahead of us, my conversations with our customers, partners, and industry peers leave me more confident than ever in our ability to meet those challenges head on. All in all, it’s the industry’s growing adoption of an Intelligence-Driven Security model, leveraging Big Data, in-depth analytics and dynamic, integrated controls to provide contextually-aware security, that is enabling companies to effectively address the challenges they can see today and those still beyond the horizon that does give me confidence, I think, I hope, I pray! Together, we will deliver a trusted digital world,” he concluded.

• While the majority of CIOs saw their role as that of an ‘Improver.’ Non-CIOs saw their CIO colleagues taking the role of ‘Improver’ or ‘Transformer’ with both sharing first place. • In answer to the question: “has the role of the CIO changed within the last five years, and if so, how,” 79 per cent of surveyed CIOs and other senior executives in the Middle East and Africa agreed that it had. The most prominent change noted was the transition of the CIO from being an Improver to being an Influencer. • When asked which new

technologies they saw as being primary investments to enable their business further in the future, both CIOs and Non-CIOs ranked mobile first and software as a service (SaaS) second. • 65 per cent of CIOs and 38 per cent of non-CIOs agreed that ERP had reduced the complexity of and sped up key operational processes. 46 per cent and 43 per cent, respectively, said that ERP enabled better visibility into their business. These were followed by helping to reduce operational costs and improving the productivity of employees.

Exc Awards EXCELLENCE AWARDS2014 25th February 2014 | Ritz Carlton DIFC, Samaya Ballroom, Dubai

Strive, Achieve and Inspire Isnâ&#x20AC;&#x2122;t that what we all work towards? To honour and recognize the best in the field of trade and to inspire others by example, we bring you the second Trade and Export Middle East Excellence Awards on the 25th of February at the Ritz Cartlton Hotel in Dubai. We invite you to nominate your organisation and be recognised in the world of trade and export in the Middle East.

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THE NEXT LEVEL

Lessons for good Corporate Governance in 2014 Corporate Governance has been a subject of continual discussion. And rightly so! With the upcoming EXPO 2020 promising to intensify competition, SMEs will need to adopt Best Practice initiatives to enhance performance, supercharge the businessâ&#x20AC;&#x2122; capabilities, and accelerate future growth. Here, John Merrigan, Partner, Tamayyaz, offers a strong Corporate Governance agenda for SMEs to implement in the New Yearâ&#x20AC;Ś

s we enter into a promising new year, I am reminded of the lessons we can reflect on from the wonderful book, A Christmas Carol, by Charles Dickens. The book centres on the life of Ebenezer Scrooge who is portrayed as a mean, penny-pinching character totally focused on money and his work, with no family or friends. By a twist of fate, he is visited by three ghosts who are sent to redeem him: the ghosts of Christmas Past, Present and Future. Dickens takes us through a journey to understand how Scrooge became what he is,

and how he understood the need for change to bring meaning and purpose to his future life. In the end, we understand how past events have shaped us to be what we are in the present and crucially, that we still have a choice to decide how the future will be, based on how we act. So it is with corporate governance. The secret of success is to make a realistic assessment of where you are today, and then make real changes to determine the future course of the business and linked to that, your personal life.

THE NEXT LEVEL

for the next three years with key staff. You cannot expect people to follow you if you do not tell them where you are going. Write down the final vision on one page, and share it with the key staff

John Merrigan

For the remainder of this piece, I want to talk about PEOPLE and some choices SME businesses must consider in 2014. Typically, SMEs have an over-reliance on a relatively small number of key employees for their success. They are usually trusted, reliable and aligned to the vision of the owners as a result of years of collaboration. They often have a key skillset, connections and vital experience. And, most likely in recent years, they have shown loyalty and personal sacrifice through difficult times. Now, consider the future. Dubai has just been awarded Expo 2020 which is an amazing achievement and will bring great benefits to the UAE, and potentially to your business. There will be challenges too, specifically to retain your key staff in the coming years. Existing competitors and new market entrants will move quickly to attract high performers, and pay them better salaries and conditions. How are you placed to deal with this very real business risk? Retaining key employees and putting in place processes to do this is at the very heart of good corporate governance. You are facing the future â&#x20AC;&#x201C; past and present solutions and behaviours will not be enough. So, here are some suggestions to consider:

Share your future vision

Owners and senior managers must share their vision of the business

Define job roles and accountability

profit-share based on agreed performance metrics. Make it objective and clear, commit to it, and regularly update on progress with the key selected staff.

Be visible and connected to your key staff

Sit with your key staff and work together to define their job description and / or update the older draft to make sure it properly reflects reality. Unless this is done, key staff will be frustrated and unclear of what you expect of them. Agree and jointly sign the revised version.

Make a commitment to spend extra time with your key staff and to listen to them. Expand conversations to sincerely understand more about their personal challenges. Often, you can do a lot without a lot of cost, and this connection makes a huge long-term impact and grows loyalty.

Assess market rates

The cost of living will likely increase as will the family pressures on your employees. Donâ&#x20AC;&#x2122;t rely on the past, and be realistic to accept that things may well change by a higher order of magnitude

Make a commitment to spend extra time with your key staff and to listen to them.

that you might like. A proactive salary increase now is a wiser course than a larger reactive increase when the key employee comes to you with a competitor offer letter.

Implement a fit for purpose Performance Management System (PMS)

Based on the company vision, job description and the business plan, put in place a fit for purpose PMS. At its simplest, this comprises writing five to ten company and personal objectives for the next 12 months, and a formal progress review at least twice during the year.

Be consistent and transparent in your decisions

Key employees need to see consistent behaviours at senior management and owner level. Take time to ensure you are being consistent and transparent on your key decisions and in how you act towards them. If this requires personal change, take it slowly and carefully.

Succession Planning

As a contingency, identify potential successors to replace key staff and where you will search for them, both internally and externally. Make the connections and give those junior staff exposure to the roles of the key staff. Being ready gives you peace of mind.

Charles Dickensâ&#x20AC;&#x2122; book: A Christmas Carol gives us valuable lessons on how we need to change to be successful, based on a sometimes painful assessment of where we are now and how we got there. It is a timely and timeless reminder about key choices we face as we move into an exciting 2014 and beyond. Unless you, as an SME owner, make those future choices, your key staff will make the choices for you. Seek help and support from trusted friends or external advisors if necessary. It is a scary prospect, perhaps just like being visited by a ghost, but there is real opportunity for those who take this governance challenge carefully and with real commitment.

Consider profit share

Whilst many SME owners baulk at the prospect of giving key employees shareholdings, a sensible first step is a

For an online version, please visit:

www.smeadvisor.com/2014/01/lessonsfor-corporate-governance/

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