SME Advisor Middle East | April 2013

presented by

good advice for better business

Issue 89 APRIL 2013 EXCLUSIVE TELECOM PARTNER

INSURANCE PARTNER

+

PLUS Colourful life A spectrum of lessons from German Imaging Technologies

Lost in the Clouds?

The pleasures and perils of Cloud computing for SMEs

Breath of fresh air Dr. Ashraf Mahate’s tips to Spring-clean your business

Techno-how Parag Khanna and the power of the technocrat

Easier said than done?

Mastering security in an open-access setting

GATEKEEPER Mohammad Abdullah on the allure of TECOM’s classic Freezones

PUBLICATION LICENSED BY IMPZ

2

Publisher Dominic De Sousa Group COO Nadeem Hood Managing Director Richard Judd richard@cpidubai.com +971 4 440 9126 EDITORIAL Senior Editor Paul Godfrey paul@cpidubai.com +971 4 440 9105 Sub Editor Rushika Bhatia rushika@cpidubai.com +971 4 440 9115 ADVERTISING Commercial Director Chris Stevenson chris@cpidubai.com +971 4 440 9138 Business Development Manager Pankaj Sharma pankaj@cpidubai.com +971 4 440 9120 PRODUCTION AND DESIGN Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 Head of Design Fahed Sabbagh fahed@cpidubai.com +971 4 440 9107 Designer Froilan A. Cosgafa IV froilan@cpidubai.com +971 4 440 9107 Photographer Jay Colina Abdul Kader Pattambi DIGITAL SERVICES www.smeadvisor.com Digital Services Manager Tristan Troy Maagma Web Developer Abey Mascreen online@cpidubai.com +971 4 440 9100

A blueprint for your business

I

make no excuse for making the theme of this month’s issue very much one of ‘learning by example’. So you’ll find profiles of companies who’ve survived, grown and prospered despite the economic downturn (and perhaps because of it) and who are models of what to do in order to achieve market pre-eminence, new infusions of capital and - above all - a devoted customer base. In providing these ‘how to’ examples of achieving commercial and reputational success, we’re focusing more clearly on areas that are of real practical value to directors and owners of SMEs. I hope you like this new direction - it’s based on the fervent belief that SME Advisor can become an indispensable blueprint for how to build your business.

Speaking of which, we’ll also be looking increasingly at areas like financial strategy, helping businesses understand the raft of investment and borrowing opportunities at their disposal and providing expert - albeit lucid and highly readable - summaries of the classic techniques. Another facet of this ‘how to’ approach will be a focus on premises acquisition and management, asking whether your premises are working hard as your prime asset or simply draining away valuable cash.

Getting the theme of strong cash management underway, in this issue we focus on the recent announcement by the Central Bank that the UAE will introduce a Direct Debit banking facility no later than June 15. Fast, cost-effective and punctual, Direct Debit can be a real boon to SMEs, both in their ‘downstream’ relationships with customers and their life ‘upstream’ as borrowers and corporate purchasers. It enables firms to maximize the value of sums held in high-deposit accounts while breaking down many of the key psychological barriers to highervalue purchases. SME Advisor explains the benefits - and some of the thornier points to watch for, too.

I will of course be very interested to get your input and feedback on any of these keynote debates, so please don’t hesitate to contact me on any of the co-ordinates below. In the meantime - good reading!

Published by

Registered at IMPZ PO Box 13700, Dubai, UAE

Paul Godfrey Senior Editor

Tel: +971 4 440 9100 Fax: +971 4 447 2409

Printed by Al Ghurair Printing & Publishing LLC © Copyright 2013 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.

Talk to us: E-mail: paul.godfrey@cpimediagroup.com Facebook: www.facebook.com/SMEadvisor

Twitter: @SMEadvisorME LinkedIn group: www.tinyurl.com/smeadvisorme

April 2013

3

Issue 89

April 2013

CONTENTS

24

From tenant to Business Partner

We speak to Mohammad Abdullah, Managing Director of TECOM’s Media Cluster, about the advantages of a Freezone location.

Editor’s note 03 Paul Godfrey believes there’s nothing like a good success story for

inspiring leadership and growth.

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.

BANKING FOR BUSINESS 22

Directly speaking: what the Central Bank’s new commitment to Direct Debit will mean for SMEs.

OPPORTUNITIES 24 From tenant to business partner: we speak to Mohammad

Abdullah, Managing Director of TECOM’s Media

Cluster, about the advantages of a Freezone location.

22 April 2013

5

CONTENTS

30 Adding online value: why Google AdWords can be a primary marketing tool.

Management 34

Spring cleaning for SMEs: Dr. Ashraf Mahate explains why performance evaluation is key to a boosting future potential.

Business guru 38

Outside the box: why technology is the key to mastering global trends the world according to Dr. Parag Khanna.

30

Human Resources 44

A cry for help: recognising the early warning signs of stress and proactively avoiding burnout.

Business pin-up 48 Setting the tone for success: the messages and lessons of German

Imaging Technologies.

Security 54 A contradiction in terms? How to answer the challenge of implementing

security in an open-access environment.

Legal 58

Cloud 9 or clouded vision? Alongside the benefits, Cloud computing poses a variety of security and legal concerns - don’t miss Al Tamimi’s expert roadmap.

Industry watch 62 B2B business interaction set for record growth.

63

Security solutions for SMEs.

64

Cloud services expanding despite concerns.

66

The key priorities for IT departments

68

UAE’s pivotal position crucial for SMEs.

69

Why working mums stimulate economic growth.

54

TECHNOLOGY FOR BUSINESS 70 IT trends and tools that are reshaping business in the region.

The next level…

76 Where to steal a deal: can you follow Cobone’s example of excellence?

6

58

Are you looking for business loans that tick all the right boxes?

Empower your business with InstaLoan from ADCB Business Banking.

InstaLoan from ADCB Business Banking offers: • Loans up to AED 1,500,000 • Competetive interest rate • Repayment schedule of up to 48 months To apply, SMS ‘BEIL’ to 2626 now, or call 800 763 800 Terms and Conditions apply.

adcb.com

SHOPTALK

UAE

DED organises specialised workshop

DED organised a specialised workshop for DQA 2013 applicants on latest EFQM Excellence Model

T

he Business Excellence Department at the Department of Economic Development (DED) held a two-day workshop for new applicants of the Dubai Quality Award (DQA). The workshop attracted representatives of 30 organisations, including past applicants, from various sectors such as Service, Transportation, Oil, Manufacturing, Trading,

Hospitality, Healthcare, Construction, Interiors and government organisations.

The workshop gave guidelines on two main areas: firstly, the internal self assessment process (made mandatory now for all applicants) enabling organisations to identify gaps and close them before proceeding to apply for the award externally, and secondly, on how to write the

external award submission using the Enabler Map and Results Qualification file as a new and simpler means of documentation.

Norman Hughes, Business Improvement Consultant at Footloose Enterprises Ltd UK, led the workshop and focused on the use of the EFQM 2013 Excellence Model, which helps organisations to improve their overall performance.

“The DQA Model motivates companies to measure, analyse, learn and improve their performances across all levels. It is of paramount importance to adopt the Quality and Excellence Model in line with international best practices,” said Hughes.

Open to all UAE-based establishments in the public and private sectors, DQA, has three main categories in which winners are honoured - the Dubai Quality Gold Award (DQGA), the Dubai Quality Award (DQA) and the Dubai Quality Appreciation Award (DQAA). The applicants are assessed based on site visits and comprehensive

reports highlighting the best practices and areas for development in each organisation which are completed by a team of assessors.

“The Dubai Quality Award is an integral component of DED’s efforts to establish the concept of quality and excellence as a catalyst for stronger business growth and cement Dubai’s status as a preferred investment destination. The award will achieve its real objectives only when organisations understand not just its benefits but the processes that make it a reliable measure of success,’’ commented Mohammed Bushanain, Executive Director of Corporate Quality and Management Excellence, DED. Launched in 1994, the DQA has been under the patronage of His Highness Sheikh Mohammad Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, who has been instrumental in driving the quality movement across the private and public sectors in the emirate.

Dubai SME and Ministry of Finance join forces Dubai SME, the agency of the Department of Economic Development (DED) mandated to develop the small and medium enterprise (SME) sector, hosted a workshop in partnership with the UAE Ministry of Finance to create awareness among Dubai SME members on federal government purchases and the modalities involved.

The workshop followed the recent decision of the Federal Cabinet, chaired by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, directing federal government bodies and ministries to allocate ten percent of their annual purchases for SME projects set up by Emirati youth.

10

During the workshop

“Dubai SME has been successfully running a Government Purchasing Programme (GPP) as part of our initiatives to help SMEs market their capabilities and cement their position as key contributors to the national economy. Since its launch GPP has

helped local SMEs win AED 1.5 billion worth of procurement contracts from government entities,” commented Ibtihal Al Naji, Senior Manager in charge of GPP at Dubai SME. “In 2012 alone, Dubai SME members won AED 250 million worth of government procurement contracts. We expect this value to increase by at least 30% in 2013 as a result of the decision of the Federal Cabinet,” added Al Naji.

The workshop was the first phase of an awareness building programme which Dubai SME plans to implement in association with all stakeholders.

Over 100 members of Dubai SME attended the workshop, in addition to officials from the Ministry of Finance and Dubai SME.

UAE

Encouraging women in art

Dubai Business Women Council recognises growing role of women in art during Art Dubai

O

n the sidelines of Art Dubai, an international contemporary art fair that takes place every March in Dubai, a special gathering for Dubai Business Women Council (DBWC) members was hosted

to recognise the growing role of women in art. The event also featured an educational tour of DIFC art galleries.

President of DBWC, Raja Al Gurg expressed, “This gathering was aimed at highlighting the increasing

contributions being made by women in the local art scene.

DBWC is keen to extend its complete support to both amateur and seasoned women artists in the region, especially at a time when contemporary art is gaining wide popularity across the Arab world, as was evident at Art Dubai.”

Art Dubai is held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai. At the core of Art Dubai, it plays a role as a meeting place linking the arts scenes of Europe and the Americas with the Arab world, South Asia, Iran, Africa and East Asia. Over the last six years, Art Dubai has become a cornerstone of the region’s booming contemporary art community. In 2012, Art Dubai welcomed 22,500 visitors;

including collectors, curators, artists, international museums groups, art professionals and enthusiasts; and hosted 75 leading galleries and dynamic young art spaces representing 32 countries from the Middle East, Asia, Europe, the Americas, Australia and Africa.

Founded in 2002, DBWC has the primary goal to motivate women to be productive members of the society.

Additionally, it encourages role models to rise up from the ranks and inspire other women around the world, especially in the Arab region, to realise their true potential.

The high-profile monthly event Network Majlis is organised by DBWC with a mission to make available information about the latest knowledge, skills and best practices for women entrepreneurs and leaders (www.dbwc.ae).

ADCB SME customers to benefit from Etihad BusinessConnect Programme Partnership Abu Dhabi Commercial Bank (ADCB) has announced a partnership with Etihad BusinessConnect, an Etihad Airways reward programme tailor-made for SMEs. The partnership will support local SME’s by reducing their travel costs as well as delivering other Etihad Guest reward programme benefits.

It is the first time ADCB and Etihad BusinessConnect have worked together to offer SME customers a reward programme that allows them to reduce their travel related expenses.

Within the programme ADCB customers, who are members of the Etihad Guest programme, will be offered Etihad Guest Miles which can be redeemed against flights with the Abu Dhabi-based airline.

Nilanjan Ray, Senior Vice President and Head of Business Banking Division at ADCB said: “We at ADCB Business Banking have always believed that innovation is what differentiates us. The partnership with Etihad BusinessConnect is yet another example of how ADCB is offering a significant added value to its customers.

“This partnership offers SME customers a ‘never before’ opportunity to earn miles while they avail one of the many specifically tailored products from ADCB. Therefore, in addition to getting a bespoke product, the customers will benefit from miles which can be used to bring down their travel expenses.

“The Etihad BusinessConnect programme is tailor-made for SMEs by understanding their travel patterns and requirements which makes it truly a rewarding proposition for the customer.”

He added: “Although ADCB’s financing commitment to SMEs has never been higher or faster growing, our support for local small and medium enterprises goes beyond providing them with the required resources to operate. Offering them exclusive programmes with high quality service providers that facilitate their procedures and lower their costs is another way to show our customers our reliability and support.”

Peter Baumgartner, Etihad Airways’ Chief Commercial Officer, said: “We are delighted to collaborate with ADCB and introduce their customers to the Etihad BusinessConnect programme, the smartest and most rewarding SME business loyalty scheme in the market.”

“By partnering with Etihad BusinessConnect, ADCB customers, free of charge, will be able to optimise their business travel spend whilst adding convenience and value to their travel experience.”

“Everyone benefits, as both the traveller and their company can earn Etihad Guest miles. Miles can be redeemed against flights, upgrades and thousands of other travel rewards and products from the programme’s Reward Shop, as well as converting them into cash via our innovative PointsPay solution.”

The partnership also allows members to upgrade their individual Etihad Guest membership to Silver or Gold status, enabling them all the benefits that come with those tiers.

Etihad Airways’ BusinessConnect programme, set up in 2010, is a free mileage earning programme for SMEs. Built on the same platform as the award winning Etihad Guest frequent flyer programme, members earn additional Etihad Guest miles for their business every time one of their employees flies.

April 2013

11

SHOPTALK

BAHRAIN

Tamkeen partners with Technical and Vocational Education UK

T

amkeen, an initiative aimed at developing Bahrain’s private sector and positioning it as the key driver of economic development, signed a Memorandum of Understanding with Technical and

Vocational Education UK (TVET UK) to enhance the level of training provided to Bahrainis. The move came as a part of its ongoing efforts to improve Bahrainis’ skills.

Matthew Anderson, Executive Director of TVET UK said, “Bahrain has a strong history in developing vocational skills and today is leading the GCC in nationalisation of its workforce.

We are pleased to collaborate with Tamkeen on this initiative, which was made possible by Bahrain EDB, to give young Bahrainis access to UK technical training, furthering Bahrain’s leading position as a preferred business hub with a highly-skilled national workforce.”

The MoU will enable Tamkeen to benefit from TVET UK’s deep expertise in the area of technical and vocational training to further enhance its human

Bahrain delegation heads to Japan A business delegation from the Kingdom of Bahrain is set to arrive in Japan as part of an official state visit led by His Royal Highness Prince Salman Bin Hamad Al-Khalifa, the Crown Prince of Bahrain, First Deputy Prime Minister and Chairman of the Bahrain Economic Development Board (EDB). The visit aims to strengthen bilateral, political and trade relations between the Kingdom of Bahrain and Japan.

The visit will see the delegation engage in high level talks with Japanese officials and private sector leaders, and will include meetings with leading businesses in Osaka and Tokyo.

The road-show provides an opportunity to boost links between Bahrain and Japan and the EDB has organised a number of one-to-one meetings for members of the private sector as well as visits to leading companies.

Bahrain-Japan links are well developed and last year marked the 40th anniversary of the establishment of diplomatic relations between Japan and Bahrain. Japan is a key economic partner for Bahrain, and the Kingdom is home to a number of major Japanese companies including Nomura Securities, Toyota Training Centre, Yokogawa, Daiwa Securities, Yamato Kogyo and SBI Pharmaceuticals.

12

capital development and private sector support programmes. This agreement will facilitate improvement in Tamkeen’s existing training offerings, development of more internationally recognised programmes, advancement of employer-driven qualification and training systems by aligning industry and education, implementation of best practices and policies in the technical educational sector, and attainment of top-notch training aids.

Tamkeen’s Acting Vice-President for Human Capital Development, Amal Al-Kooheji said, “Through this agreement, we will be able to access TVET UK’s extensive network of outstanding service providers to offer even more world-class training options for Bahrainis that are in line with labour market demands.”

Since its inception, Tamkeen has launched over 100 programmes to develop Bahrain’s human capital, including skills training, leadership and management training, employment support, work-readiness and corporate culture, professional qualifications support, and many others. Over 47,000 Bahrainis have said to be benefited from those programmes to date.

Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive, Bahrain Economic Development Board said: “We are delighted to be visiting Japan again. The Japanese economy is one of the world’s leading markets and our mutual ties go back many years. There are already 25 Japanese companies based in Bahrain and we are hopeful that these meetings generate further interest from firms looking to join them in using Bahrain to access the Gulf market.”

Members of the Bahrain delegation will include: • His Excellency Shaikh Khalid bin Ahmed Al-Khalifa, Minister of Foreign Affairs • HE Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the EDB • HE Shaikh Mohammed bin Essa Al-Khalifa, Political & Economic Advisor, Court of the Crown Prince • HE Dr Khalil Hasan, Ambassador of Bahrain to Japan • Dr. Esam Abdullah Fakhro, Chairman of the BCCI • Mahmood Al Kooheji, CEO, Mumtalakat • Farouq AlMoayyed, Chairman, Y.K. Almoayyed & Sons BSC • Fuad Kanoo, Vice Chairman, EK Kanoo Group • Khalid Al Zayani, Honorary Chairman, Al Zayani Investments • Abdulhameed Kooheji, Chairman, AJM Alkooheji • Fawzi Ahmed Kanoo, Deputy Chairman, YBA Kanoo • Ahmed Mirza Jawahery, Chairman and CEO, METEE

BAHRAIN

Strengthened role of women in Bahrain

KSA

Saudi graduates to benefit from extensive training

H

ayam Al-Awadhi, Executive Director, Finance and Administration for the Bahrain Economic Development Board (EDB), spoke at an event hosted by Bahrain’s Supreme Council for Women, as part of a programme to encourage public and private sector organisations to participate in the Kingdom’s initiatives to improve equality in the workplace and society.

At the event, Al-Awadhi spoke about the EDB’s role in supporting the empowerment of women in the Kingdom and the work it has done which led to the organisation receiving Her Royal Highness Princess Sabeeka Al Khalifa’s Award for Women Empowerment in 2011. She also spoke about how the financial award was used.

Bahrain has taken great steps in empowering women, through a focus on education, training and equality in the workplace and society. The Kingdom was the leader in the Gulf in education for women, opening its public education system to women in 1929. Bahraini women now represent nearly three quarters of students in the Kingdom, and represent nearly 40% of the workforce in the financial services sector. These achievements have meant that, according to a survey last year by MasterCard, Bahraini women are the most empowered in the Middle East.

Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the EDB, said: “The EDB takes great pride in the role that women play in every aspect of society in the Kingdom. It is the core reason why Bahrain is recognised as the most liberal business environment in the Middle East, with the most skilled bilingual local workforce in the region. Only by continuing to drive forward progress will we continue to achieve these results to support economic growth and to help attract investment.”

A number of the EDB’s key reform initiatives in supporting the education sector and business environment have supported economic diversity and enhanced workplace and social equality for women. This is reflected in the EDB’s foundations, and over half of the organisation’s executive management are female.

In recognition of these efforts, the EDB, competing against over fifty other government sector entities, was awarded Her Royal Highness Princess Sabeeka Al Khalifa’s Award for Women Empowerment within the government sector in 2011. The financial award was utilised by the EDB to create an intensive leadership workshop programme for young female employees in middle management. The training, which focused on leadership styles and ethics, was carried out using practical methods such as physical and mental exercises, and personality analysis.

L - R: Sam Alkharrat, Managing Director, SAP MENA and Muhammad Ali Albakri, CIO and CFO, Saudia

A recent Memorandum of Understanding (MoU) signed between Saudia and SAP revealed plans to establish a unique Competency Centre at King Abdullah Economic City. The joint initiative will endeavour to prepare Saudi graduates for the job market through teaching essential business, IT and leadership skills. Training will encompass everything from negotiation and communication to conflict management and design thinking.

Moreover, the initiative will offer SAP certifications on core business and industry solutions.

Expert guidance will be provided

by SAP, a business software company, during the centre’s IT hardware and software set up.

This will include the Marawed initiative whereby promising graduates across the MENA region will be assisted to gain SAP certifications through both viral and hands-on project experience.

Cutting edge facilities, strategic position between the East and the West, and peerless ability to interact with the region’s largest economy are the prime reasons that make King Abdullah Economic City an ideal locale for the Competency Centre. It

is predicted that the city will be the size of Washington DC when finished in 2025. The USD 100 billion project will prove to be a catalyst in the growth of the Kingdom’s tourism, logistics, energy, transportation and manufacturing sectors.

Saudia has already committed to moving 1000 employees to its Smart Technology Hub in King Abdullah Economic City.

“Saudi Arabia needs to continue strengthening its ability to create sustainable high-tech jobs, and Saudia is determined to do everything it can to support this process,” said His Excellency Eng. Khalid Abdullah Almolhem, Director-General, Saudia. “By training the best and brightest in vital business and IT skills, we are laying the groundwork for jobs that can not only benefit individuals but also entire industries and the economy.”

Government statistics prove that this move to empower young graduates by SAP and Saudia comes at a valuable time for the Kingdom with more than two-thirds of Saudis being under 30, and nearly threequarters of all unemployed Saudis being in their 20s.

The MoU will also entail SAP sharing aviation industryspecific best practice to help Saudia support its operations across the board.

In addition, the MoU will explore how both Saudia and the Kingdom can benefit from the potential creation of a Saudi Arabian arm of SAP’s Training and Development Institute.

April 2013

13

FINANCE FOCUS

Emirates Islamic Bank introduces new initiatives

E

mirates Islamic Bank launched the first of a series of initiatives with the primary focus to offer foreign exchange services to its customers. The initiatives are in line with Emirates Islamic Bank’s strategy to develop a strong position in both remittances and currency exchange.

Faisal Aqil, Deputy CEO, Consumer Wealth Management, Emirates Islamic Bank, said: “This is a strategic move by the bank, showing both to our customers

Faisal Aqil, Deputy CEO, Consumer Wealth Management, Emirates Islamic Bank

and non-customers that we can facilitate currency exchange as well as funds transfers. We are looking to be the destination of choice when it comes to foreign exchange services in the country.”

“We started with an Indian Rupee promotion to benefit our large Indian client base. We are offering transfers at the best rate in the market.”

In response to market demand, Emirates Islamic Bank plans to launch a range of new foreign exchange services and promotions targeted both at customers and non-customers in the near future. This will include features such as currency exchange, online requests and Zero Charge, Zero Spread promotions in all branches and alternate channels.

“These products are an important component of the bank’s development.

In addition to making our considerable branch network available for currency exchange, we have also brought an online facility to the market. We believe that it is critical that customers have the ability to manage their money across a range of currencies. The Indian Rupee service is simply the start of a much wider multicurrency offer which Emirates Islamic Bank will be announcing in the coming weeks and months,” Aqil concluded.

Managing your personal finances

Wally, the personal finance iPhone application, boasts an impressive 10,000 downloads, with over 9,500 active users.

Wally helps users anywhere in the world to keep track of what they spend and the details, in their own currencies. After nine months of private testing, the app is now available for free, and user privacy is ensured as user-generated data is only saved on the phone.

14

“The idea behind Wally is that our personal finances are usually a mess, and we just don’t have the right tools to manage them. Some of us use Excel, some use a paper and pen, and then there are some people that actually learned how to use a type of personal accounting software; bless them. The truth is, we’re not all born gifted accountants,” said Saeid Hejazi, CEO and Co-Founder, Wally.

Wally has been downloaded over 10,000 times without any marketing spend to date, and has sat at the number one position of Finance apps in the Apple app store in over six countries. “The feedback from users and tech-bloggers alike has been phenomenal; it seems people are looking for exactly what we have created,” confirms Hejazi.

“We’re on a mission to solve our problem and one that many people, everywhere, are facing.

Ultimately, we want to be able to give users a comprehensive view on their finances; what comes in, what goes out, and what is left in savings for emergencies or special treats,” adds Hejazi.

“As of today, we’re pretty proud of what we’ve done and that is to help users keep track of the money going out, which is why we’re mobile only at the moment; quick ways of logging your expenses, scanning your receipts, easy to understand graphs and more,” adds Hejazi.

The next steps for Wally are already under development with an Android version of the app in the pipeline.

Web access and integration will follow, giving users more detailed information, analysis tools and visualisation, if they require them. Wally is currently being translated into nine

languages following user feedback from around the world.

“In terms of the finance tracking features, Wally users will soon be able to enter their income and use the app to plan and budget different aspects of their spending. Currently, we help them capture what goes out. Our next plan is to capture what they make, their income and help them compare the two,” adds Hejazi.

Monetisation is not a current priority for the developers of Wally. Hejazi shares his thoughts, “When it comes to the question of how we make money, the simple answer is, we don’t.

Wally is completely free and doesn’t have any ads. The idea is to build a really good basic version that everyone can use and love. As we build, we’ll be adding some premium type features that users will be able to pay for if they choose; probably anything from USD 15 to USD 25 a year, but we will never take away or limit the current features.”

Emirates NBD and the Emirates Group collaborate

Suvo Sarkar, General Manager-Retail Banking, Emirates NBD (right), and Hussain Shaikh, Vice President-HR Employee Services, the Emirates Group

E

mirates NBD and the Emirates Group, joined forces and signed a Memorandum of Understanding (MoU), whereby the bank will provide a pioneering e-letter solution to the employees of the Emirates Group, enabling access to a speedier and more efficient processing of applications for all retail products. Suvo Sarkar, General Manager-Retail Banking, Emirates NBD, and Hussain Shaikh, Vice President-HR Employee Services, the Emirates Group, signed the MoU in the presence of senior officials from both organisations.

The MoU states that Emirates NBD will receive and accept electronically transmitted salary certificates and salary transfer letters from Emirates Group employees with a goal to reduce turnaround time on the credit applications process and enable the bank to provide more efficient services to customers.

“Emirates NBD’s e-letter solution is in line with our strategic objective to provide customers with world class services, and meets the growing market demand for secure 24/7 e-banking services that can be

accessed from anywhere,” said Suvo Sarkar. “Emirates NBD is proud to be the first bank in the region to launch this innovative and environmentally-friendly service, and we are delighted that our long-standing partner, the Emirates Group, will be the first to benefit from this service.” The e-letter solution will be available to all the Emirates Group employees who apply for a personal, auto or mortgage loan from Emirates NBD, and will allow customers to fulfil their requirements within a shorter span of time. Emirates NBD also plans to extend the service to other clients in the near future. “We are confident that e-letter will prove to be a new milestone in e-banking in the region as it eliminates the tedious process of obtaining a physical salary certificate or salary transfer letter, considerably reduces the margin of error and cuts short the process time for an application,” he added.

The service, which is enabled with fraud protection and provided in a secured manner, is in accordance with the applicable laws of the Government of Dubai, and ensures greater speed and efficiency of the loan application process through reduced paperwork.

Empowering microentrepreneurs Pi Slice announced the start of its operations enabling individuals and companies to lend to MENA based microfinance institutions (MFIs) with an aim to bridge the gap between individuals, the private sector and social development in the MENA region.

Driven by social impact, Pi Slice empowers microentrepreneurs, who are otherwise excluded from access to credit by formal banking institutions, to start and grow businesses, engage in income-generating activities, and thereby transform their own lives as well as those of others by becoming job creators rather than job seekers.

By offering a small online loan, the lender can provide an aspiring micro-entrepreneurs with a lifealtering opportunity to overcome poverty, enter the formal economy and proliferate available employment opportunities, thus accelerating development. This would not only enable MFIs to build a sustainable future for the industry, but also help shape the region’s future economies, communities, and competitiveness.

Genny Ghanimeh, Chief Executive Officer at Pi Slice said: “Several challenges exist in the current microfinance industry in the MENA, and investors have no access to projects that align with their social strategic goals. This is exactly what Pi Slice will resolve by providing transparency, accountability, access, and choice. Together with the experience and know-how of MicroWorld, we are sure to meet our challenges.”

David Langlois, Chief Operating Officer of MicroWorld, commented: “At MicroWorld, we believe that people should be able to support the fight against poverty in a transparent, efficient and respectful manner.

Previously this was a dream, but now technology has made it a reality. Our success at developing meaningful connections between lenders in Europe and microentrepreneurs around the world has inspired us to bring our expertise to MENA.” As key stakeholders in the region’s development process, the private sector is now presented with an unparalleled CSR channel to unlock the abilities of millions of unemployed youths, activate human capital in the labour force, and solve economic crises, hence actively contribute to the sustainable development of the MENA region.

Pi Slice unveils its MENA portal for individual and corporate investors, opening doors to a brighter future.

“By making the Pi bigger, the private sector’s shares consequently increase, and the development process becomes a win-win situation aligning the interests of all stakeholders,” Ghanimeh said.

“Our goal is to be the partner of choice for renowned MFIs and investors in the region, and together lead the change.”

Pi Slice, founded in March 2012, is supported by tier one strategic partners and a motivated and qualified team. It is headquartered in Dubai, with a branch in Beirut.

April 2013

15

FINANCE FOCUS

Nol card recharge introduced on mPay

D

ubai eGovernment (DeG) announced the addition of a new service to the list of its mPay services. The new service allows the public to top up the four types of Nol smart card.

This enables them to settle their tariff towards any of the multiple means of transportation in Dubai including the parking service.

This is of course in cooperation with Dubai’s Roads & Transportation Authority (RTA).

This is the second service following the Salik recharge service that the RTA has implemented through Dubai eGovernment’s mPay. This collaboration is a result of the eagerness of the two entities to facilitate procedures for the public so that they can recharge their Nol cards rapidly and be able to use RTA transportation. It also expands the circle of individual and corporate beneficiaries of the mPay service by adding other services of interest to customers.

His Excellency Ahmad Bin Humaidan, Director-General of Dubai eGovernment

To use the service, interested users must first register via mpay.dubai.ae with their personal data and credit card number. A confirmation code is then sent via email to be mentioned in the SMS to complete the payment, along with the mPay password. For existing users, all they have to do is click on Nol from the list.

Recharges can be made through an SMS to 4488 with the confirmation codes sent upon registration so that a balance would be added to the card by deducting AED 50, AED 100 or AED 200 from the subscriber’s credit card.

FOREXTIME to offer Amanah accounts ForexTime, an international online forex broker is committed to provide clients in the Middle East access to the global currency market without compromising their religious values. This move came following an industry report which ranks the UAE as number one in investment diversification amongst Arab traders; with more than 42% of UAE investors having direct or indirect investments in currency, oil and gold markets. The forex broker will

16

His Excellency Ahmad Bin Humaidan, Director-General of Dubai eGovernment, said: “We are pleased at the Nol card joining the list of services on our mPay portal, which is part of Dubai eGovernment’s initiative to provide round-the-clock government services, through innovative channels, to the public and the business community in Dubai in line with the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, during the recently held Government Summit, to provide a single mobile stopshop for citizens to conduct their government transactions from one place.”

According to DeG statistics, more individual and corporate customers are using Dubai eGovernment’s mPay service to complete their government transactions.

Bin Humaidan added, “These statistics also show an increase in their confidence in these effective and wellsecured channels, especially after the keen efforts of Dubai eGovernment to increase customers’ assurance by upgrading the portal with

offer true Shariah-compliant Amanah accounts that are especially suited for UAE traders as an ideal alternative to the interest-based conventional services.

In addition, recognising the importance of the UAE for having established itself as the financial hub for the region, ForexTime is proud to be the official partner of the MENA 11th Forex Expo 2013; a well-established forex event in the country. Recognising the value of supporting such a key event in the region’s finance calendar, ForexTime is looking forward to welcoming traders to this year’s event.

“The UAE has, without a doubt, established itself as the financial hub of

a more secure ePayment system and a larger range of payment options to provide convenience to users.” mPay enables individual and corporate customers to inquire about and pay for some government services, either through an iPhone app that combines all the services in one place for implementation in one step or via SMS to 4488, thereby providing ease and convenience to users. In addition to recharging Nol cards, the service allows Salik recharge from RTA when users run out of balance; payment of traffic fines from Dubai Police; payment of electricity bills from DEWA and donations to Dubai Cares, which joined the service recently. Users can also capitalise on the “multiple accounts” feature which allows them to use the service settings to support multiple accounts of one government service. For example, customers can recharge the Salik account of more than one car from their mPay account.

For more inquiries about the service and its updates, please contact Ask Dubai on 700040000.

the Middle East,” said Olga Rybalkina, CEO of ForexTime. “MENA Forex Expo 2013 will offer an exciting and encouraging forum for UAE and international investors to learn about recent global developments and we are eager to share our knowledge and network with the market’s leading players.”

ForexTime provides bespoke products and services appropriate to each trader’s needs and is committed to helping customers get the most out of their trading. As such, ForexTime will also be launching an Arabic-language website to accommodate local and regional investors, knowing full well that language is a critical factor in trading success.

April 2013

17

SME ABOUT TOWN

Cisco Connect 2013 UAE

The first ever Dubai edition of Strathclyde 100 for entrepreneurs

L - R: Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME; and Murad Abida, Partner and Head of the Corporate Group at DLA Piper Middle East, during the signing ceremony

Strathclyde 100 launched in Dubai

T

he University of Strathclyde, Glasgow in partnership with its Dubai Alumni Chapter launched the first ever Dubai edition of Strathclyde 100 for entrepreneurs.

The launch showcased three successful pitches and it was revealed that a Strathclyde Entrepreneurial Network (SEN) would be created and opened to all entrepreneurial champions in the region.

The Strathclyde 100 Programme was launched by Professor Sir Jim McDonald, Vice Chancellor and Principal of the University of Strathclyde; and prominent Emirati investor and Chairman of Al Jal Capital, Nabil Alyousuf. The launch was also graced by the presence of His Excellency Dr. Rashid Ahmed Mohammed Bin Fahad, Minister of UAE Environment and Water, as well as Strathclyde alumni and leading entrepreneur champions in the region.

Professor Sir Jim McDonald said: “The Strathclyde 100 epitomises what the university is all about: enterprise, connecting research to commercial outcomes, giving our students opportunities to translate their learning into useful outcomes and engagement with the business and investment community. Since its start in 2003, the Strathclyde 100 programme has been instrumental in creating a number of spinout

18

companies that have secured large scale investments and more importantly access to business advice from influential leaders who can connect them and drive forward their businesses quickly to get a leading market position.”

Sir Jim wished for a similar outcome in Dubai and the region. “We have built a thriving entrepreneurial community in Glasgow and the greater region and I hope that the launch of the Strathclyde 100 programme in Dubai will lead to the formation of a similar entrepreneurial community in the UAE,” he concluded.

Keynote speaker, Nabil Alyousuf said: “There is still a gap in the market for early startup companies who are looking for smaller cash infusions from USD 100,000 to USD five million. We are actively interested in investing with such visionary entrepreneurs who are creating businesses for this specific region and looking to raise this capital. Such entrepreneurs must have operational superiority, not exaggerate their valuation and understand the subtle differences between the various markets in this region. On a very positive note, the current landscape is very promising with major success stories and programmes such as Strathclyde 100 are bound to boost the entrepreneurial community in the region.”

Three new startups at Strathclyde 100 pitched for access to new markets, mentorships or further funding for their entrepreneurial ventures.

Cisco’s rebranded and expanded flagship technology event Cisco Connect 2013 UAE was recently held in Dubai. Previously known as Cisco Expo, Cisco Connect is not just a name change; this year, the annual technology event offered an expanded forum, showcasing the company’s cutting-edge technologies, products and solutions.

At the heart of Cisco Connect 2013 UAE was the theme Your Vision Made Possible. The aim was to provide a platform for Cisco to discuss and showcase current ICT trends such as the Internet of Everything (IoE), and how organisations and government throughout the Middle East could leverage these trends to drive business success and make their visions possible.

Participants benefited from presentations and technology breakout sessions delivered by Cisco subject matter experts, as well as Cisco partner workshops. These sessions embraced technology topics such as cloud, collaboration, video, virtualisation and borderless networks.

Cisco Connect UAE featured the World of Solutions, an interactive exhibition area where visitors could explore the broader Cisco partner ecosystem, experience Cisco solutions, and hear the unique perspective of Cisco technology experts and partners.

Continuing on from the success of last year’s Cisco Expo, Cisco Connect UAE 2013 attracted regional business and technical decision makers from government and mid to large enterprises from a diverse cross-section of industries.

Cisco Connect UAE 2013, alongside with the recently held Cisco Connect KSA 2013, served to underline Cisco’s continued commitment to the Middle East region as it strives to help business and governments across the globe drive sustainable ICT growth.

Rabih Dabboussi, Managing Director, Cisco UAE, said: “As adoption of information and communication technologies in the GCC accelerates at unprecedented pace, so does its effect on breaking down barriers, increasing the connections between people and its ability to bring the world closer together. With this in mind, it is all the more important that business leaders, IT experts and key decision makers in the UAE are kept informed of the latest technology solution developments. Cisco Connect 2013 provides great opportunities for the UAE ICT professionals to network together, strengthen relationships, and connect with key customers and partners.”

Stimulating young minds

The Big Start team

A

l Tamimi Investments (ATI) opened its doors to aspiring young entrepreneurs by launching Season Four of its student entrepreneur competition, The Big Start. The competition, successfully running in its fourth year, encourages promising business leaders to convert their ideas into workable businesses.

The annual contest offers a chance to UAE-based final year graduate or postgraduate university/college students, below the age of

30 years, to become the CEO of their very own business supported with full funding and operational support for their idea.

With the aim to boost the morale of the participants this year, the Big Start announced the start of its fourth season by inviting an impressive panel of experienced speakers to share a few highlights about their career and their success stories. Students seemed very enthusiastic as they took home suggestions, tips

and expert advice from the panellists.

One of the speakers, Andreas Borgmann, Creator of Kcal Healthy Fast Food, advised: “Ethics in business gets you so much further wherever you go. It is important to maintain good relationships with people and this is what got Kcal to where it is.” He motivated new entrepreneurs to create strong relationships and network as much as possible stressing that these factors are vital in forming long-term business partnerships.

Launched in 2009, the competition forms the core CSR activity for ATI. Focused on fostering the next generation of entrepreneurial talent in the UAE, the competition is one of its kind in the country to actively guide, mentor and facilitate the development of each entrant’s business plan, and to support the winner’s concept, both operationally and financially to make it a reality.

Acknowledging the importance of such events,

Karim El Ghazl, Founder of FitYou said: “The most important part of such events is to keep them inspired.

They know that there is still a place for them to dream at. It is like putting fuel in a car to keep it going.” He continued by saying that the self-confidence and pride achieved by being involved in such an event make every participant a winner.

In addition, the winners of the preceding three seasons addressed the crowd by revealing the peaks and pits of their journey so far and discussed how the competition has had an impact on their lives.

“I encourage everyone to participate if you have an idea to pursue,” said Stepanie Ost, Winner of The Big Start Season two and Founder and CEO of SO Famous.

Talking about the positive change after winning the competition, she said that she matured to a great extent over this period and had learned how to effectively manage her time and approach people boldly.

Young Entrepreneur Competition 2013 The UAE Ministry of Presidential Affairs will be the main sponsor of the ninth cycle of the Young Entrepreneur Competition (YEC 2013), organised

by Dubai SME, the agency of the Department of Economic Development (DED) mandated to develop the small and medium enterprise (SME) sector, under the patronage of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of the emirate’s Executive Council.

The annual competition, which has been expanded to Abu Dhabi and Ras Al Khaimah for the first time this year, will also have the RAK Free Trade Zone as its silver sponsor. YEC aims to inculcate

entrepreneurial spirit among students in the public and private secondary schools and universities across the UAE. YEC provides students in the UAE with a unique window to test-launch their entrepreneurial ideas in a real world of business and learn the basic principles of starting and operating a business. A display of projects conceived and implemented by participants across three venues; Abu Dhabi, Dubai and Ras Al Khaimah; will be the centrepiece of the competition.

Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME, commented: “We are privileged to have the Ministry of Presidential Affairs as our main sponsor as it underlines the top priority given

to developing entrepreneurship in our national agenda as well as Dubai SME’s role in promoting entrepreneurialism.

We are also grateful to the RAK Free Trade Zone for supporting us in making the Young Entrepreneur Competition a nationwide platform.”

Al Janahi stated that YEC has achieved remarkable results in identifying entrepreneurial talent among the younger generation at a very early age and in preparing them to enter and excel in the competitive world of business. The competition has seen a growing number of participants every year, contributing to grooming a new generation of entrepreneurs eager to start early and adopt best practices.

April 2013

19

SME ABOUT TOWN

Dubai Chamber’s Belarusian initiative

HE Hisham Abdullah Al Shirawi, Second Vice Chairman, Dubai Chamber of Commerce and Industry

H

is Excellency Hisham Abdullah Al Shirawi, Second Vice Chairman, Dubai Chamber of Commerce and Industry urged businesses from Dubai to exploit investment opportunities offered by Belarus. He described this as one of the fastest emerging markets in the world, while calling upon Belarusian firms to expand their business activities in the region from Dubai.

Al Shirawi was speaking at Dubai Chamber’s Country Focus Briefing: The Republic of Belarus 2013, held in cooperation with the Belarusian Embassy at the

Chamber headquarters. The briefing was organised as part of Dubai Chamber’s initiative of exploring investment opportunities in promising markets of the world for its members while enhancing the competitiveness of Dubai businesses in the overseas business arenas.

The Second Vice Chairman of Dubai Chamber added that Belarus has a clear strategic vision to be a transit hub between the Customs Union, comprising itself, Kazakhstan and Russia, and the rest of Europe. This can offer traders in Dubai opportunities to reach out to new markets and vice versa as traders in Belarus and the

Exploring SME Finance SME business owners enjoyed insights on a multitude of hot topics at the recent TECOM SME Builder 2013 Series held at the Dubai Knowledge Village. The session, SME Finance Essentials, was aimed at all SME businesses looking to gain some financial knowledge and expertise.

20

surrounding countries can use Dubai as a gateway to Middle Eastern, African and Asian markets.

Highlighting potential investment areas for UAE businesses, Al Shirawi informed that Belarus’s industrial base is well developed, with manufacturing being the leading FDI business activity while machinery equipment is one of the country’s main exports. This is one area where joint ventures between Belarus and Dubai businesses could have significant impact, he said.

He further stressed that Dubai today is a leading example of a diversified economy which is led by its lucrative sectors of trade, tourism, logistics and financial services which are the main drivers of the emirate’s economic growth. “Our members’ exports and reexports to Belarus valued AED 82 million and it was Dubai’s 147th trade partner and we would like to see this increase through joint efforts between our two sides,” said Al Shirawi.

HE Anton Koudasov, Deputy Minister of Economy, Belarus Ministry of Economy, stressed that Belarus and the UAE have a lot in common like both being the gateways to their particular regions,

The event included a pool of experts from different areas including investment, law, commercial banking, finance, globalisation, startup ventures, empowerment, entrepreneurship and monetising.

Attendees were able to gain valuable advice from the experts and discuss key aspects of their SME businesses whether they were at the initial stages or were looking to expand. They had an opportunity to assess their business financially, get suggestions on financial

having an open economy and business-friendly policies which can be used to their advantage in enhancing bilateral ties between the two countries.

He informed that Belarus has seen a per capita GDP growth of 33% and an average 14% investment growth in the last five years and ranked ninth amongst the top ten countries in the East European region as he invited UAE businesses and their partners from Russia and Kazakhstan to invest in his country.

The Belarusian Deputy Minister of Economy pointed out that 5,700 companies have been started in Belarus with foreign capital, with investors from more than 77 countries choosing Belarus while the most favoured sectors for investors have reflected Belarus’ traditional strengths with machinebuilding and metal-working, chemical and petrochemical, and timber.

Vyacheslav Reut, First ViceChairman, Belarus Chamber of Commerce and Industry, extended an open invitation to Dubai Chamber to bring its delegation to his country and to explore the investment opportunities which he said will lead to joint cooperation in many mutual areas of interest for both the sides.

governance, understand major financial barriers that could come their way and expand their knowledge on how the UAE law works with SME finance. In addition, the event proved to be a great networking session for business owners to interact with knowledge leaders, inspiring speakers and peers.

Entry to the event was free for all SME businesses. For more information, you can visit their website www.tecomsmebuilder.com.

Empowering aspiring entrepreneurs

P

epsiCo and Al Ahli Holding Group’s CSR Division gathered nearly 200 you social entrepreneurs at Business4Change, a twoday conference aimed at inspiring, developing and supporting young social entrepreneurs looking to start businesses that also have a positive impact on their communities.

The event offered aspiring social entrepreneurs the opportunity to access thought leaders and mentors from organisations such as C3, Oxford University’s Skoll Centre for Social Entrepreneurship, Gradberry and Ahead of the Curve Consultancy.

In learning about key areas of building a social enterprise, such as concept development, operations models, marketing and

During the conference

capitalisation, attendees of the Business4Change conference established a deeper understanding of how to create a sustainable business that drives social change.

“If we want a more sustainable future, it’s crucial that we nurture young talent from the region,” said Huw Gilbert, Vice President of Corporate Affairs, PepsiCo

Dubai World Conference on Consumer Rights Held under the patronage of His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, the first-ever Dubai World Conference on Consumer Rights (DWCCR) and Power Brands Dubai exhibition, was held at the Dubai World Trade Centre (DWTC).

Organised by the Department of Economic Development, Dubai, with the support of Dubai Refreshment Company (DRC), the conference and exhibition aimed to bring the best international practices in protecting

Asia, Middle East and Africa, the main host of the event.

“Small and medium-sized enterprises play a large role in developing a country’s economy; from creating opportunities and reducing unemployment, to having a positive social impact and today, we’re investing in the future by fostering ideas from youth, who will become tomorrow’s leaders.”

consumer rights and intellectual property to the fast-evolving Middle East retail sector and particularly the vibrant UAE market.

“The Middle East sector has a high concentration of brands, outlets, sales activity and human talent. Dubai is a good example of a vibrant retail market contributing remarkably to the national value-add as well as creating jobs and stimulating growth across other sectors such as logistics and tourism,” Omar Bushahab, CEO of Commercial Compliance and Consumer Protection Sector said referring to the significance of DWCCR and Power Brands Dubai.

“Creating awareness among traders as well as consumers on internationally accepted and ethical practices in retailing is the logical next step to making this promising sector competitive and sustainable. The Dubai World Consumer Rights Conference and

Attendees gained invaluable insight into how to make their social business ideas a success, with four participant groups awarded for their concepts. The PepsiCo Performance with Purpose awards recognised the most socially impactful, yet economically viable, ideas conceived at the Business4Change conference.

The awards aimed to help the winners kick-start their social enterprises, with a prize of dedicated mentoring from Ahead of the Curve in addition to the development of a mobile website and app from KryptonWorx to support the marketing for each winning project. PepsiCo hopes this will enable the winners to reap long-term, sustainable benefits.

In addition, Al Ahli Holding Group’s CSR Division awarded a USD 20,000 award to one team that has been incubated and trained for one year as part of their programme.

Power Brands Dubai exhibition are part of our efforts in this direction,” added Bushahab.

The ultimate objective of the event is to empower consumers and help retailers drive revenues through consumer loyalty. The conference featured 27 speakers including international consumer rights advocates as well as experts in consumer protection and intellectual property rights (IPR), brand strategists, business, government officials and academia.

April 2013

21

Banking for business

Directly speaking The Central Bank’s recent decision to introduce Direct Debit can open powerful market opportunities for SMEs, boosting customer relationships and revitalizing purchasing roles. The new agenda starts on June 15 and it pays to be ready…

“Efficiency means doing things right - but effectiveness means doing the right things”

- Peter Drucker

• The failed cheques had a value of AED46.8 billion (All figures: Central Bank data).

ost owners and directors of SMEs will know the veracity of Peter Drucker’s words from bitter personal experience. So there should be some cause for celebration over a recent announcement by the Central Bank which opens up considerable opportunities for SMEs - boosting their ability to focus on core essentials such as customer acquisition and their relationship with new potential sources of funding.

The good news was announced on April 10: the Central Bank confirmed plans to introduce the direct debit payment system to the UAE by June 15. All of the UAE’s banks and finance houses will adopt the service.

The Central Bank’s decision reflects the fact that a system that relies too heavily on payment by cheque can’t align with the UAE’s vision of a world-class commercial future. It also responds to the grim realities that while a cheque is supposed to be written ‘in absolute good faith’, the recent statistics tell an altogether different story: • In 2012, 1.4 million cheques failed at the point of use in the UAE alone • This figure represents one in five of all cheques issued

These are far from being cold statistics: it was SMEs who were amongst those hit hardest by every bounced cheque. For example, schools left out of pocket every time a fees cheque rebounded; high street brokers left high and dry with redundant insurance cheques; or jewellers in debt with the collapse of a lifetime gifting bond.

It’s tempting to think of the majority of failed cheques being given largely for substantial personal loans or mortgages yet even if this was the case, many of the finance houses are themselves archetypal SMEs.

M

22

Does this de-criminalise debt?

The fact is that while much is made of how, in the UAE, the failure to honour a cheque is a criminal (not a civil) offence - and can result in imprisonment - this has clearly not been a strong deterrent. Note, though, that at this stage it remains a mute point whether the shift to direct debit is a move in the direction of de-criminalising debt: there hasn’t as yet been an announcement on whether a failed direct debit will carry criminal charges, although it is known that the UAE Banks Federation has been meeting with the Central Bank to discuss the decriminalization of bounced cheques

as such. It’s also significant that in October 2012 a Presidential decree immunized UAE nationals from serving jail terms for writing bad cheques (since which more than 1,000 nationals have been released from prison) and it is widely felt that the move to direct debit represents a wider seachange towards a more liberal application of commercial law.

The ‘special relationship’: how direct debit works First things first. Many people confuse direct debits and standing orders. A direct debit is differentiated from a standing order in two important ways. Firstly, it can involve sums of different sizes each month, because the direct debit agreement itself doesn’t specify a set value. (Whereas a standing order is an automatic payment of a set, unchanging amount each month).

Two classic examples of direct debit arrangements would be the repayments on a car finance plan (at the moment covered almost exclusively by post-dated cheques) and those on an insurance Life policy. In the case of the car finance plan, a direct debit can cover both the regular payments and the larger ‘balloon’ payments made at the beginning and end of the loan term.

For the Life policy, a direct debit is ideal for coping with the larger initial payments (which include the sales commission on the policy) as well as many years of

‘tweaking’ the monthly contribution value in line with increases in salary and savings.

The other difference is that a direct debit is a contractual arrangement between the payer and the payee - not with either party’s bank as such. The person who directly draws the funds (the payee) instructs his or her bank to collect an amount from another person’s (the payer’s) bank account and pay those funds into a bank account designated by the payee. Before the payer’s banker will allow the transaction to take place, the payer must have advised the bank that he or she has authorised the payee to draw the funds directly.

Yet - and this is a key point - once the direct debit mandate has been set up, the dates on which the transactions take place and the values of the transactions themselves are no concern of the respective banks: they are strictly a matter of agreement between the payer and payee. The banks play the role of facilitators, and as such, legally have third-party independence, which can be very valuable in the case of tracking the payment (or not) of disputed sums. This positioning of the arrangement between the payer, payee and their banks is a special relationship unique to direct debit.

The significant benefits to SMEs Introducing a different way to pay regular bills and buy into long-standing financial agreements can make a surprising transformation in the ways that both businesses and individuals enter into debt.

In 2011, a poll conducted by the market research house Ipsos MORI - interviewing users of direct debit in in the UK, the Netherlands, Germany and Scandinavia revealed that 22% of all those polled would more willingly take on further debt if it was payable by direct debit. Other findings showed that • 91% of direct debit users believe it is the most convenient way to pay bills that they have ever used.

• 87% welcome the fact that, since direct debit means they can’t forget to pay their bills on time, it has the extra benefit of avoiding unwelcome reminders or financial penalties.

• 80% believe direct debit saves valuable time.

• 64% believe that direct debit is a good tool for cash management because it eliminates time-consuming reconciliation.

Only errors and non-payments are notified to the payer, so it’s easy to carry out reconciliation by exception.

• The average adult in the Western European countries polled has six or more direct debits.

It follows that by making direct debit facilities available to customers across major purchases, SMEs can substantially enhance the appeal of their offer, since they are in effect breaking down a number of the psychological barriers to taking on debt.

It’s also well-known that there’s no better way of scaring potential buyers away than asking them to write 60 cheques - thereby not only creating a tangible barrier to the prospect of the purchase, but also bringing home the harsh reality of all those future outgoings.

The benefits to be accrued by using direct debit for customer transactions can best be described as ‘downstream’ benefits.

These take advantage of the fact that direct debit is • Time-effective - your customers don’t have to waste time writing, posting or presenting cheques.

• Punctual - there are no potential problems with late payments: a core benefit both to you and the customer.

• Cost-effective - direct debit means customers won’t incur late payment fees and feel alienated from your services as a result.

• Improves customer credit score - not such an issue in the UAE and the GCC, but will increasingly matter as credit scoring becomes more widespread.

• Security - direct debit is an extremely secure way of paying. There’s no risk of lost cheques, contested cheque signatures, etc. This maximises creditor cashflow to your business and reduces potential problems and delays for the customer.

Direct debit can give your business extra leverage in higher-risk scenarios such as launching a new product line, upselling customers to a bigger, better degree of financial commitment or when you know in advance that payment sums might vary - for example, if you’re a wholesaler providing food and beverage bulk orders of varying sizes, or a shipping broker aware of dramatic peaks and troughs in seasonal buying cycles. Also consider that direct debit enables you to ‘revisit’ and upgrade an existing financial arrangement because you won’t be asking the customer to do anything time-consuming like reissuing batches of company or personal cheques. This is ideal if, for example, you

are a car dealership promoting a new window tinting or paint armour process for a customer fleet, or an A/C installation specialist retro-fitting upgraded units to an existing premises.

‘Upstream’ benefits The advantages of direct debit are equally manifest when an SME is itself behaving as a customer: the time-efficiency, cost-saving and punctuality of direct debit not only make for an easier and simpler life but, importantly, allow for accurate cashflow projections, which in turn maximize the value of sums held under high-interest deposit.

Through streamlining the payment process, direct debit can also encourage the business to make preferential purchases, especially in terms of more complex undertakings such as arranging employee health insurance, carriage of diverse goods via well-known international couriers and payment to visa facilitation firms.

Looking through rose-coloured glasses?

It’s also important for any SME to recognize that the new direct debit regime has the potential to introduce risks and potential hazards of its own. For example • Since the value of direct debit payments may vary, you have to ensure that there is always enough money in your bank account to cover the higher outgoings.

This might be easier said than done, because you won’t always know what the value of the payment will be.

• If you as payer have agreed changes in the direct debit agreement with the payee (or vice versa) you will require a notice period before these can be recognized by the bank - otherwise, you risk the old amount being debited, leaving you a payment in arrears.

• It’s quite easy to stop a direct debit arrangement, but the payee may already have specified that the goods and services are only available on condition of payment by direct debit - and you may face a penalty clause.

Notwithstanding, if used with care and forethought, direct debit opens up fresh opportunities for the majority of SMEs in both their customer-facing and purchaser roles. It also allows businesses in the UAE to better align themselves with international best practice - which may make it far easier to gain the extra credibility offered by benchmarked quality standards such as ISO 9001. Time to start preparing for June 15…

April 2013

23

OPPORTUNITIES

From tenant to Business Partner What is the ‘X-Factor’ that gives Dubai’s Freezones a near-legendary standing as catalysts of business growth and market pre-eminence? In an exclusive interview, Mohammad Abdullah, Managing Director of TECOM’s renowned Media Cluster, spoke to SME Advisor about the benefits, environment - and preconditions - that life in a Freezone implies…

F

irst things first. Mohammad Abdullah is a natural fit with his task of overseeing Dubai Media City, Dubai Studio City and the International Media Production Zone. His background includes being Executive Vice-President of CNBC Arabia and Press Director at Emirates Media Incorporated (not to mention an earlier stint as a broadcast journalist and anchorman on Abu Dhabi TV). So it’s no accident that the trio of Freezones he represents not only provide world-class locations and a spectrum of premises for every pocket, but also strive to offer a wealth of connectivity and sense of community that genuinely help businesses be the best they can. One of the themes emerging from the following interview is that every Freezone in the TECOM Media Cluster actually works in a proactive way with its tenants - and it’s no accident that it then calls them ‘business partners’.

Mohammad, while Dubai Media City, Dubai Studio City and the International Media Production Zone are each well-known in their own right, what benefits and features do they all share?

Let me begin by explaining that the Freezone concept already existed prior to their creation. It had really evolved 28 years ago, at a time when the Government was ‘thinking ahead’ about the need to build an economy that wasn’t reliant on the export of fossil fuels. It was decided

24

Mohammad Abdullah, Managing Director of TECOM’s Media Cluster

April 2013

25

OPPORTUNITIES to focus on creating a service-based economy. This was a natural choice given Dubai’s location as a regional hub - for generations, it had been a place that was ideally-positioned to be a centre of international trade, connecting regions as diverse as the Indian Subcontinent, central Africa and the MENA nations. It was felt that a service-based offer would naturally complement this geographical advantage, especially if the new trading districts could offer unique benefits not found elsewhere. For example, whereas other areas required partnership with a local business, the new Freezones offered the chance for 100% ownership.

Plus of course, they were tax-free.

Now, the Freezones in the Media cluster combine this approach with a dedication to Media - they provide a tailor-made environment where media firms can interact, feed off one another, trade with each other and enjoy a real sense of community. They have strong connectivity and create a very unique environment. This means that at TECOM, we have to be not only a real estate entity, but actually understand

Dubai Media City

26

the media industry, how it functions and what media businesses require in order to perform at their best. When Dubai Media City was launched in 2001 (Internet City had started in 2000), we had 99 companies on-board. Today, there are 1,842. This suggests that the offer is very appealing to media firms and that they feel there is something strongly beneficial here.

Are there any special preconditions that an SME has to meet in order to locate in TECOM’s Media Cluster?

Yes, we do have certain requirements that extend across all types and sizes

Spend time in any of the environments of the Media Cluster and you can see that they’re very productive and enjoyable places to be.

of business. For example, we require an indication that the business won’t be ‘here today, gone tomorrow’, but is genuinely skilled and qualified to do what it does. So we require a detailed Business Plan and a comprehensive financial study - again, materials that show us a business understands its market and the segment it is working in. Similarly, in the case of freelancers - who of course can also be registered here - we need to see a detailed CV, demonstrating their credibility and their ability to do what they say. In this way, we’re committed to protecting - and raising - the standards of the sector we represent.

Are there any special incentives for locating in Dubai Studio City or IMPZ? It’s inevitable that Dubai Media City will be the most popular of all, because it’s the oldest and the bestknown. Plus, of course, the others were launched just when the global financial crisis was starting to bite, so it took a couple of years for demand to build. Yet now, Dubai Studio City is 100% occupied, and the International

April 2013

27

OPPORTUNITIES

a remarkable base for commerce or a range of world-class lifestyle attractions that are second to none. When you’re based in the Media Cluster, all of this is quite literally in your doorstep. I can only add that any other location will have to struggle to give its Business Partners anything comparable.

What is the size range of business premises available in either Dubai Media City, Dubai Studio City or DIMPZ? You can get any size of premises, from a desk in a business centre to 10,000, 15,000, 20,000 sq.ft. - whatever is bestsuited to your needs. The point is that we are with you, as your business partner, as your company grows and we can provide compatible services throughout the journey from small business to a major entity. I can give many examples of companies that began as a start-up in a business centre which now occupy very substantial areas.

Media Production Zone not far behind.

They’ve both become recognised as premier locations in their own right.

At a time when other emirates offer Freezone facilities and we see the aggressive marketing of Qatar, for example, does the TECOM Media Cluster still have a unique appeal?

Yes - and I feel there are several aspects to consider here. Firstly, there are all the benefits of the advanced connectivity and interaction that we mentioned earlier; these are important factors that make up the fabric of the community. Spend time in any of the environments of the Media Cluster and you can see that they’re very productive and enjoyable places to be. Add to this as well the fact that we have different products that can assist you in your work. For example, the premises in Studio City are purpose-designed to facilitate all the

28

When Dubai Media City was launched in 2001 (Internet City had started in 2000), we had 99 companies on-board. Today, there are 1,842.

most up-to-date digital and filming/ broadcast techniques, while those in the International Media Production Zone offer all the physical scope that industries like print, packaging and finishing require.

Yet there is also a larger picture: one of our competitive advantages is the environment offered by Dubai itself. Very few places can offer such

Everyone hears that there are special visa benefits within the TECOM Media Cluster - what are these exactly?

I should say first of all that although we process visa applications, in fact they go through a central processing hub. The number of visas is based on the size and style of the office space that is taken.

While the Freezones do offer employment terms that differ somewhat from other more traditional environments, an important aspect is the fact that when we process a visa application, we ask if someone is going to improve the standards of the industry - it’s no use being overrun by people who can’t do the job.

For you personally, what’s the appeal of being a Director in a major Freezone environment?

For me, it’s very important that we work proactively with our Business Partners to help them be the best they can.

The fact that we use this term is itself significant: other people call them tenants, but for us, they’re part of an ongoing strategic alliance. It’s because we invest this kind of relationship that the Media Cluster has experienced such remarkable success. I’m very proud to play a part in an initiative of this kind.

on-Demand Contact Centre From virtual office services to back office analytics. dreambox offers complete solutions for all your customer experience needs.

The Relationship Revolution has Begun.

Your relationship with customers has changed forever. They’ve taken control of the conversation, expecting to connect when, where, and how they want.

Here’s how to meet their demands, and stay in the conversation.

April 2013

29

OPPORTUNITIES

Ad-ing online value With the vast pool of online marketing tools offered to businesses, Google AdWords emerges as a popular choice.

W

ith the rapid growth of the e-commerce world, it can often be very intimidating for businesses, particularly small firms, to select the appropriate means to familiarise online users with their company. Internet World Stats reported about 90 million Internet users across the MENA region, making it a chief target for startups, e-Commerce players and other businesses to capitalise on by advertising and reaching out to these users. When we think of anything online, it is difficult to not have Google, one of the industry’s leaders, come to mind.

Recognising this increasing need for businesses to strengthen their online presence, Google offers several online marketing tools, including Google AdWords, Mobile Ads, Click to Call and many more. Widely used across various industries is its popular Google AdWords, a performance-based advertising tool that allows businesses to advertise on Google and its network of partner websites. It enables advertisers to use keywords best related to their firm and when someone searches on Google using any one of those keywords, the ad usually appears next to the search results either on the top or the right hand side.

Speaking to Tarek Abdalla, Head of Marketing, Arabian Gulf and Levant at Google, we uncovered the power of this advertising strategy. “The beauty of Google AdWords and the strength of it is that it is directed to people looking for something which means their intent is high,” he explained. “If you run a business that is a website campaign, Google AdWords, is especially beneficial. Also, geographically focused businesses benefit more. If you have any kind of online presence, Google AdWords is great to drive traffic towards that,” said Tarek.

Google AdWords as a marketing technique Cleartrip, an online travel agency that began its online operations from its headquarters in Dubai in November 2011, has activated Google AdWords from day one. Cleartrip began in 2006 with an office in India, with the mission of How to make travel simple. Its approach is to make travel as simple a process as possible by localising results and customising offers. “We are often known as Google for the travel world essentially because we are simple and easy,” said Hijazi Natsheh, Head of Marketing Middle East, at Cleartrip. They realised that their target audience was already doing their travel research online and this is where AdWords came in.

If the intent of a search user was to look up various cities, hotels, and flight options, then Cleartrip could step in and suggest a booking.

30

April 2013

31

OPPORTUNITIES

“Google AdWords was the backbone of our online marketing strategies mainly because it is intention-based and time-sensitive. We work very closely with the team at Google to understand the travel trends in the market and create offers relevant to our customers,” continued Hijazi.

He further explained that their marketing plan has two different parts; acquisition and retention. When it comes to acquiring new clients, Google AdWords proves to be the best, with no competition. On the other hand, in order to retain customers, they use several strategies like ads on Facebook, YouTube and Twitter, as well as email

marketing. Some of their branding activities include print campaigns, metro campaigns, radio campaigns and competitions.

The online fashion retailer, Namshi.com, credit a part of their success to AdWords.

“We’ve been using AdWords since the very beginning,” says Louis Lebbos, CoFounder of Namshi. “When operating a purely online company, there’s really no other pay-per-click option that gives us the ability to present a specific collection of our products based on what people are truly looking for. AdWords generates sales for us on a daily basis.”

The minimum amount to start advertising with Google Adwords

is surprisingly low which makes it an attractive tool for SMEs. “What is inspiring about Google AdWords is that you can start advertising even with USD one, something that is great for SMEs,” advised Hijazi.

Outshining factors Packed with some great features for advertisers, Google AdWords stands apart from other advertising tools.

Firstly, the option to have specific keywords helps firms target their most interested audience because when people search the web, they usually tend to type in what is exactly on their mind. As reported by a Google casestudy on Namshi, this specificity is also what makes AdWords work so well for them, especially when combined with other Google tools.

Google AdWords was the backbone of our online marketing strategies mainly because it is intentionbased and timesensitive. We work very closely with the team at Google to understand the travel trends in the market and create offers relevant to our customers.

Tarek Abdalla, Head of Marketing, Arabian Gulf and Levant, Google

32

The case-study further reveals that the AdWords team at Namshi optimises their campaigns by utilising Google Insights for search and analytics, which helps identify current trends in the region. For instance, with AdWords, the team can see what products are very popular across the GCC. Using Google analytics, they discover that in certain markets, a landing page with maxi dresses performs much better than a page offering a wide selection of dresses. Through the combined analysis of AdWords and analytics, the presentation of products can be tailored

to the target audience; the statistics tell exactly what arrangement works best.

Secondly, creating multiple ads helps businesses in experimenting with numerous ads for their different products and services. Additionally, it gives firms a chance to evaluate if their ad is something users are looking for.

“One of the most important elements is that this is the most honest feedback you receive about your product. You can start test campaigns to find out what people are looking for, what works and what doesn’t,” commented Hijazi.

Lastly, businesses that are geographically focused gain an opportunity to use geo-targeting to display their ads in a particular location.

Apart from these features, ads can also be based on specific days of the week, hours in a day, or different placements or devices. Hijazi reinforced this by saying: “Another speciality is that you can customise your ads with Google, so you can have different ads during the day and different ones during the night.”

Tarek Abdalla from Google further discussed that there were three key factors that define Google AdWords; reach, measure and efficiency.

Emphasising on the difference between AdWords and other media platforms, Tarek commented, “It is different from other media campaigns as you don’t know what that media is dong for you.

However, AdWords enables you, as an advertiser, to decide who you want to reach and measure at what cost you got the customer.”

When questioned about what really sets apart Google AdWords from its competitors, Hijazi of Cleartrip said, “We definitely use other platforms, but there is no competition to Google AdWords. It beats everyone else, especially in terms of acquiring new customers. Additionally, you can connect Google Analytics to Google AdWords and this is a strong base for decision making. The good thing about Google is that they have industry experts that understand the technical and industrial aspects of things. This is where their power comes in.”

Mapping future growth “You have a reason to advertise with us. We have seen small businesses turn into medium business and then grow

Hijazi Natsheh, Head of Marketing Middle East, Cleartrip

It is probably the best time for businesses to advertise online.

It doesn’t matter if you are a SME with a small budget or if you are a large company, the fundamental principle of Google AdWords remains the same. It is extremely affordable and efficient. further,” continued Tarek. It is interesting to explore how various businesses have benefited from Google AdWords and how it has helped significantly in their growth.

“The main goal is to meet customer needs by presenting them with the products they want,” expresses Lebbos from Namshi in the Google case-study.

“For example, one of the key audiences we target is professional women, aged 20 to 50, and using all the available tools we can customise our advertising to show this audience only products that would be relevant to them.” The approach is working so far, as Namshi showed 35% week-on-week growth

in the first three months of operation.

Since initiated, they continue to produce double-digit growth rates on a weekly basis.

Addressing what is in store for the future, Hijazi from Cleartrip said, “We will definitely continue to use AdWords as we expand into different demographics across the GCC. Even though we are very established in the market, we want to ensure to continue targeting new customers in the UAE.” “The biggest challenge we face today, and this is where Google is needed, is that around 70% of the travel industry is still offline and this needs to be converted to online travel.” Cleartrip has enjoyed a 100% year-on-year growth.”

The GCC e-Commerce industry is estimated to grow 35% year-on-year to USD 15 billion in 2015, according to Visa International, making it the fastest growing market for e-Commerce in the world. With this boost in the e-commerce world, now would be the best time for businesses to look into online advertising platforms and make their presence felt.

Concluding with words of wisdom, especially for SMEs looking to advertise, Tarek advised, “It is probably the best time for businesses to advertise online.

It doesn’t matter if you are an SME with a small budget, or if you are a large company, the fundamental principle of Google AdWords remains the same; it is extremely affordable and efficient.”

April 2013

33

MANAGEMENT

Spring cleaning for SMEs Evaluating their performance can hugely benefit SMEs, writes Dr. Ashraf Mahate of Dubai Exports.

A

s a child I recall that spring was not only a period when the weather got warmer, the birds started to build their nests and new lamb were born but it was a time when mothers traditionally carried out their spring clean. My experiences of a spring clean revolve largely around my mother deciding that it was time for some of my toys and comics which I had been hoarding to be thrown away. This was when the tears poured and of course the usual tantrums came into their full force as I felt that my most treasured items were dismissed with little care or concern.

Little did I realise at the time that I had outgrown the toys and did not really play with them, and the comics

34

were rather old replaced by new ones. Nevertheless, the annual ritual between my mother and me carried on until either one of us finally gave in or negotiated as to which items could be kept for a little longer. This childhood behaviour is difficult to get rid of even in adulthood. Generally speaking, once we get attached to something it’s very difficult for us to change or dispose of it. This is where the psychological inertia takes over normal rational behaviour. That’s why it’s important for us every so often to take stock of the current situation and evaluate the performance over the first quarter of the year. This is more so the case for SMEs who tend to be resource-constrained and lack the competitive muscle of larger firms.

A corporate spring clean is a good manner by which to revisit the good intentions that the company started the year with and to assess if it is on the correct path. More importantly, a spring clean can also help a SME deal with some of those issues that have been put aside for a later date or even some of the clutter that has taken place over the last few months.

Once these nagging issues have been dealt with, the SME will have a better picture of its performance to date and what needs to change in order to achieve,

if not exceed, the goals that were set at the start of the year.

Cleaning the clutter and the nagging items is, of course, the first place to start as far as a spring clean is concerned.

Once this has been completed the firm needs to take a more structured approach which usually tends to start with reviewing the business plan for the year. As is often the case, SMEs tend not have a formal written business plan and now may be a good time to draft such a document. A business plan need not be a complex document and it can be as short as one page. The most important point about a business plan is that the route the company has decided to take is written down and communicated to all the staff. In this way, the whole firm will be on the same page. The advantage of a written document is that one can be regularly visited to ensure that it still makes sense or whether the market dynamics are such that certain aspects need to change.

Reviewing the business plan also allows the firm to identify the current and more importantly the emerging competitors. In this way, the firm can always ensure that it has its eyes on the ball and is fully aware of competitor developments so as to stay ahead of them. It’s not just enough to know of what competitors are doing but the firm also needs to obtain market feedback to understand what they are doing correctly, as well as incorrectly. The firm can learn a lot from what has not worked for other firms so that it avoids making the same mistakes. The firm will also need to review its own performance through obtaining feedback from employees and key customers so as to understand what changes are required.

Finally, the firm needs to carry out a formal analysis to identify its strengths, weaknesses, opportunities and threats and make a list of three to five key improvements that it can implement in the forthcoming quarter with clear timelines and action plans.

For resource-constrained SMEs, the most important aspect is to have an efficient and effective financial management system. Such a system need not be expensive or even complicated and simple steps can ensure financial efficiency. Of course this also requires the firm to have a large level of financial discipline both in terms of actions (i.e.

Dr. Ashraf Mahate of Dubai Exports

A corporate spring clean is a good way to revisit the good intentions that the company started the year with and to assess if it is on the correct path. updating the information in a timely manner), as well as reporting it to decision makers so that they can take the appropriate action. First, despite any resource constraints, the SME needs to ensure that important information such as sales, cash receipts and expenses are first forecasted at the start of the year so as to produce a budget. This can be done easily on an Excel spreadsheet that tabulates cash flows. Then each month the firm needs to enter the actual amounts so that it can analyse the variation (i.e. the difference between the budgeted amount and the actual): in this manner the firm can understand not only the variances in the budgets but also the underlying cause. As a result the firm can take appropriate action to reverse any negative variances while enhancing the positive ones. More importantly, such a simple budget can help the firm identify future cash flow shortages and ways to reduce costs, as well as early warning signs of other financial problems that may lay ahead such as bad debts.

April 2013

35

MANAGEMENT

Cash flows are very important for all firms but especially for SMEs who may lack the financial reserves of larger firms. In order to obtain a better understanding of the cash flows the SME can seek to understand the cash cycle, ie the period from paying for raw materials, goods or wages for products and services being delivered right through to the point when it is able to collect the payment from customers.

It is important to appreciate that any delays in the cash cycle can have far reaching repercussions that go beyond just reduced profits.

For instance, understanding the cash cycle can help the firm assess whether its credit policies are effective and if outstanding revenue needs to be collected faster. Such an analysis allows the SME to review its billing procedures and even consider third party solutions such as debt collection agencies or factoring. Of course there are customer relationship issues involved, when it comes to using debt collection agencies. However, factoring is a more feasible method whereby the firm obtains a discounted value of its invoice immediately instead of waiting for the customer to pay. The process of collecting the outstanding revenue then becomes the responsibility of the factoring company. The cash cycle can also help the firm reassess its current inventory levels and perhaps reduce stock levels by clearing out old and slow moving items. This will allow the firm to free up cash tied up in stock and to utilise within the business in areas that can increase profits.

In recent years compliance has become a major issue for governments and it’s important that SMEs do not fall into the trap of not fulfilling their legal requirements. Today, most businesses have to adhere to some sort of legal compliance be it health and safety, labour, food control and so on. Therefore, now is the best time to ensure that the company is up to date with all its compliance issues and the appropriate forms have been completed, processes carried out, and so on. In addition to the mandatory compliance, the firm can also assess itself with voluntary compliance systems and procedures to ensure

36

that it has adopted the best practices in the industry. Of course it’s not only about adopting the best practices but ensuring that they make a difference to the customer and they become aware of the changes.

In the modern world the Internet is an indispensable tool for generating sales and keeping in touch with customers.

However, this means that the SME needs to ensure that it is used wisely and regularly updated. Therefore, the spring cleaning has to include a continuous improvement to the SME’s website.

Typically, SMEs feel that a website is a once for ever task that does not need

Spring cleaning may not be the best of activities but it is certainly important to remove the old and to assess what has happened so as to embark on the new. updating. However, the reality is that the website is the electronic shop window to the SME and needs to be regularly updated. This is also true of the mobile applications. Also, with the host of new electronic devices launched into the market the SME needs to ensure compatibility and find out whether the website is functioning properly. If the SME has a Facebook, Twitter or LinkedIn account then they need to be revisited along with the SME’s social media strategy. This might be a good time to have someone dedicated to ensure that the content is fresh and relevant. If internal resources are not available then this process can be cheaply outsourced to companies such as Bayswater Consulting (www.bayswater-consulting.com) who keep a close eye on all relevant social media to the business and ensure that the SME has relevant content to its customers. The company also carries out an assessment of competitor social media and online presence so as to develop and effective strategy for the SME.

The best way for a SME to gain a competitive lead over its rivals is to upgrade its skills and ability. SME owners and managers in SMEs frequently complain that they have little time if any to attend conferences, training, courses and lectures. The spring clean is a good time to change this type of thinking and set aside time for education. The SME owner or manager need not attend a formal MBA programme, although having taught on one for over 20 years; I strongly believe that it adds value to the individual. The SME owner can simply spend time reading about the new developments in management, marketing etc. so as to clean the cobwebs inside the mind. Also, new knowledge can help the SME better understand its business and carry out innovation to gain a competitive advantage over rivals.

The spring clean is also a good time for the company to assess its foreign market strategy to ensure that it is maximising its ability to generate revenue from overseas customers. If the SME is not exporting it needs to look at one or two markets that it can enter into relatively easily. If the SME is already exporting it needs to think about expanding the number of foreign markets that it is currently serving. The usual question that arises is how to know which market to enter and what method to employ.

The simplest answer is to look at what domestic and foreign competitors are doing. This will help the SME understand the key markets and the entry routes that are successful for each country.

The SME can then think about the internal changes that it needs to make in order to service foreign markets which could be simple things such as multilingual websites to increasing its production capacity. Foreign expansion needs to be well planned to ensure that it is successful and trade promotion agencies such as Dubai Exports play a vital role in assisting firms to enter overseas markets. Spring cleaning may not be the best of activities but it is certainly important to remove the old and to assess what has happened so as to embark on the new. As the author A.A. Milne stated, “One of the advantages of being disorderly is that one is constantly making exciting discoveries,” and let’s hope they lead to profitable outcomes for SMEs.

BUSINESS GURU

Dr. Parag Khanna

38

Outside the box We meet up with an intellectual Dr. Parag Khanna to discuss his thoughts on the region, global affairs and technology’s role in local business.

D

r. Khanna was named one of Esquire’s 75 Most Influential People of the 21st Century in addition to being featured in WIRED magazine’s Smart List. He has also been on CNBC as a regular guest host, has a contributed column on CNN.com and has been featured across BBC, PBS, Al Jazeera, and many more.

Waving Goodbye to Hegemony, his cover story in New York Times Magazine in 2008 was globally recognised. He is the author of How to Run the World: Charting a Course to the Next Renaissance (2011).

Furthermore, being recognised for his expertise on global affairs, he is the author of The Second World: Empires and Influence in the New Global Order (2008) where he studies the 21st century’s emerging geopolitical marketplace dominated by three first world superpowers, the US, Europe and China. He is also the co-author of

The argument is that it is ultimately the power of technology which is dictating the rise and fall of economies.

Hybrid Reality: Thriving in the Emerging Human-Technology Civilisation (2012).

With many feathers in his cap, Dr. Parag Khanna, geo-strategist, author and world traveller has a lot to talk about. He begins with the fond memories of his days growing up in the UAE. “The time that I have spent here has exposed me to both the strengths and weaknesses of the region,” he reminisces.

Born in India, and having lived in New York, Germany, Singapore and UAE, Parag’s knowledge is not limited

April 2013

39

BUSINESS GURU

to any one region. He holds a PhD from the London School of Economics in addition to Bachelors and Masters Degrees from the School of Foreign Service, Georgetown University.

the Hybrid Reality Institute, a global research and advisory firm providing insight into the implications of emerging technologies.

who has power. It is essentially the cities that harness technology that have evolved to be stronger. This can be supported with his example of China in his article on CNN.com; It’s

The Arab world has never had a capital, officially, or unofficially.

It needs a world class, cosmopolitan, multiethical and multicultural Arab city. Dubai came at the right time to serve this role.

As of 1999 to 2000, he held the position of a Research Associate at the Council on Foreign Relations in New York. From 2000 to 2002, he worked at the World Economic Forum in Geneva and from 2002 to 2005 he was the Global Governance Fellow at the Brookings Institution. During 2007 he held the position of Senior Geopolitical Advisor to United States Special Operations Forces.

Dr. Khanna is currently a Senior Fellow at the New America Foundation, the country’s innovative think tank, where he directs the Roundtable on the Future of the World Economy and advises the US National Intelligence Council’s Global Trends 2030 programme. Additionally, he also serves as Senior Fellow of the European Council on Foreign Relations in London, and the Singapore Institute of International Affairs. He co-directs

40

Hybrid reality and the info-state The concept of hybrid reality has been much discussed, especially following Khanna’s views in his book Hybrid Reality: Thriving in the Emerging Human-Technology Civilisation (2012), co-authored with Ayesha Khanna.

He describes this as going past the information age and entering a new age, essentially the hybrid age, where the boundaries between technology and humans are indistinct, if not nonexistent.

The book describes the co-evolution of humans with technology, exploring how the world will see a lot of changes revolutionising our daily lives. While this theory distresses to many, it also clarifies the positives that might come along, such as improved health monitoring, or advanced security systems.

Dr. Khanna further states that technology, in today’s world, determines

the technology, stupid, co-authored with Ayesha Khanna. He credits China’s current strong position to their approach towards technology stating: “China’s superpower rise is directly attributable to its technological strategy of dominating low-cost manufacturing, accumulating massive surpluses and reserves, and reinvesting that cash into more advanced technologies, as well as military hardware.”

In his book, he also talks about how this power of technology ties to the political world. He adds to this, “The argument is that it is ultimately the power of technology dictating the rise and fall of economies. These emerging info-states harness in knowledge and technology, and they provide connectivity to fast-growing markets and technologies.”

This leads him to an interesting element; the info-state. In his article Rise of the Info-States, he describes an info-state as a city or nation that governs as much through data as through democracy. Further delving into his notion, he says that a place, whether or not it is democratic, needs to use data to understand its population. He adds that it is vital to shift the style of policymaking to implementing advanced technologies.

“This is the formula for the test of success. In the information age,

Simple. Adaptable.

Manageable. quick uides for Solution g ! eployment and easy d

Simple:We are committed to making our solutions the easiest to install, configure, and integrate into either existing IT systems or data centers — or new build-outs. We ship our solution as “ready to install” as possible (e.g., tool-less rack PDU installation and standard cable management features). With our easy-to-configure infrastructure, you can focus on more pressing IT concerns such as network threats.

ns Configuratio ace! sp IT for any

Adaptable: Our solutions can be adapted to fit any IT configuration at any time — from small IT to data centers! Vendorneutral enclosures, for example, come in different depths, heights, and widths so you can deploy your IT in whatever space you have available — from small IT or non-dedicated spaces to even large data centers.

manage your Monitor and ere! rom anywh IT spaces f Manageable: Local and remote management are simplified with “out-of-the-box” UPS outlet control, integrated monitoring of the local environment, and energy usage reporting. Manageability over the network and robust reporting capabilities help you prevent IT problems and quickly resolve them when they do occur — from anywhere! What’s more, our life cycle services ensure optimal operations.

Easy-to-deploy IT physical infrastructure Solution guides make it easy to determine what you need to solve today’s challenges.

The core of our system, vendor-neutral enclosures and rack PDUs, makes deployment incredibly headache-free. Easily adjustable components, integrated baying brackets, pre-installed leveling feet, and cable management accessories with tool-less mounting facilitate simple and fast installation.

Integrated InfraStruxure™ solutions include everything for your IT physical infrastructure deployment: backup power and power distribution, cooling, enclosures, and management software.

Adaptable solutions scale from the smallest IT spaces up to multi-megawatt data centers.

Business-wise, Future-driven.™

Download any of our White Papers within the next 30 days for FREE and stand a chance to win an iPhone 5!

Visit: www.apc.com/promo Key Code: 32201p Call +9714-7099690 (Arabic) / +9714-7099691 (English) Fax +97147099-650 ©2013 Schneider Electric. All Rights Reserved. Schneider Electric, APC, InfraStruxure, and Business-wise, Future-driven are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. All other trademarks are the property of their respective owners. www.apc.com • 998-1155587_ZA_C

BUSINESS GURU

it is important to determine the correct set of tools to achieve well governed societies; as of now, very few governments explore technology to enhance public services.”

Khanna goes on to discuss Dubai as an emerging info-state describing how the city has implemented the use of technology thoroughly and is constantly using it to understand people better. He also identifies Dubai as the capital of the Arab world: “The Arab world has never had a capital, officially, or unofficially. It needs a world class, cosmopolitan, multiethical and multi-cultural Arab city.

Dubai came at the right time to serve this role. It ticks all these boxes. It is the home to DIFC, it is strategically located, and it has political stability, international access, infrastructure, security, and attracts world investors.

It is not about being better or worse; it is about being first.”

Addressing his concept of a smart city, Dr. Khanna says, “What determines this is a large number of factors, like delivery of technology, access to public services, technological and physical infrastructure. These are elements that make a city a real smart city, not a fake one.”

Over time, the factors that will differentiate smart cities will be their ability to use technology to boost innovation, sustainability and inclusiveness, and not just the level of technology penetration, as he explores in his article The Generative City, coauthored with Ayesha Khanna.

A look at the future When asked about what lies in store in terms of technology, Dr. Khanna says, “There is no end state with technology; it should always be unfinished, and it is always evolving.”

He further stresses the need to think about the future, “We have to prepare ourselves for humans and technology merging in several ways. We have to be prepared for the implications of the government in a smart city. What happens when technology replaces certain jobs in the economy? These are obvious questions that we don’t take time to think about.”

42

He discusses how we have reached a point where IQ and EQ aren’t as important as TQ; technology quotient.

“TQ is about how prepared you are for technology as an individual.”

“Dubai needs to improve its quality of medical care and educational standards while continuing to build,” says Dr. Khanna on his thoughts about Dubai’s future.

Elaborating on the influence from the West, “Dubai has been the centre of the world; I don’t think anything happening here is because we are taking lessons

There is no end state with technology; it should always be unfinished and it is always evolving. from the West. It has strong relations with Asia, Europe and rest of the world. The reason why Dubai is where it is today is because of its unique way of maintaining strong relations with everyone.”

In response to the relations between Dubai and Abu Dhabi, he says, “I remember when I was little, we used to drive between Dubai and Abu Dhabi where all you could see was vast open space. Today, you can see that same drive being transformed into one long urban line. I like to refer to this as Abu Dubai.” He explains how the two cities have grown together and have undergone rapid expansion.

When asked to compare Dubai with other cities in the world, Dr. Khanna says, “It is not right to compare with other cities. You need all these different 15 types of major financial cities in the world like Dubai, Mumbai, Tokyo, London, New York, and so on.”

Enhancing SMEs Addressing the SME sector, Dr. Khanna expresses, “Improving SMEs is the result of improving everything else in the society. You can’t just isolate the SME sector and try and develop it.”

Speaking of SMEs from a global perspective, he says, “There has been a universal push to enhance the SME sector. All across the world, people are trying to encourage SMEs in order try to alleviate inequality and encourage entrepreneurship.”

“One country which has been robust and has weathered all storms is Germany; they have an intersection between their industrial policy, labour market and educational system. In the Arab world, there hasn’t been a large degree of push; you need talent, leadership skills and the educational system needs to be reinvented. The UAE has definitely introduced a lot of initiatives but the rest of the region has to follow.”

Words of advice Dr. Parag Khanna gives some valuable advice for young business leaders.

Firstly, he suggests to students that studying within the region will be more beneficial rather than going abroad to study as this might be their opportunity cost.

He explains that by staying back students could start networking, building connections and looking for jobs. He emphasises that students who do select this option should capitalise on this chance and network as much as possible. This is significant in building relationships, getting ahead and creating an edge over others.

His advice to aspiring entrepreneurs is to think of a firm beyond its traditional meaning. “Don’t think of your company just as a business. It is much more than that. You have to get strong talent and retain it. It is not just a job, but also about skills. So don’t just give them a job; give them a skill set.”

He adds that it is common to see firms setting up their own universities like Standard Chartered University, General Electric University and so on.

This is because these companies don’t just want to give people simple jobs, but want them to have an enhanced aptitude matching their requirements.

“In today’s world, an educational degree is not enough; you need a lifelong educational system,” concludes Dr. Khanna.

HR

A cry for help In a fast paced environment like the UAE, it’s not uncommon to experience rising stress levels.

It’s all too easy for employees to reach the inevitable point of burnout – often indicating of an unhealthy relationship between the individual and their work.

44

K

eeping stress levels in control is essential for employees and more importantly for employers.

A recent survey by Robert Half, a specialised recruitment consultancy, revealed that four out of ten HR Directors in the UAE agreed that employee burnout is common within their organisation.

James Sayer, Director, Robert Half UAE said: “It is no secret that professionals in the UAE are working hard, with heavy workloads and overtime taking their toll on employees. While companies are having to do more with less, inadequate staffing levels may result in a decrease in employee motivation and productivity

and in some cases increased attrition rates as employees seek better work-life balance with competing organisations.�

The critical path The research also shed light on the several driving factors causing employees to experience exhaustion. Workload was top of the list and this is commonly the result of blurred and overlapping job descriptions and not enough staff members to get the job done. Overtime and long working hours were other reasons, with employees logging in long hours in order to complete pending or overdue responsibilities.

A research conducted by Robert Half UAE in June 2012 showed that nearly nine

April 2013

45

HR

It is no secret that professionals in the UAE are working hard, with heavy workloads and overtime taking their toll on employees.

While companies are having to do more with less, inadequate staffing levels may result in a decrease in employee motivation and productivity and in some cases increased attrition rates as employees seek better worklife balance with competing organisations. in ten Dubai-based employees work longer than their contracted hours and one in four work over-time every day of the week. Economic pressures and the inability to balance personal and professional commitments were other reasons that followed on the list.

Where is it seen?

The phenomenon of employee burnout is prevalent increasingly all across the region with figures suggesting 34% of Dubai and a staggering 49% of Abu Dhabi companies suffer from this workplace occurrence.

The reason behind the high level of employee burnout in the capital can be attributed to heavy investment and expansion of the economy. In support of this, Sayer said, “Abu Dhabi is expanding in its structure and forging ahead. There is high demand for talent right now.” The requirement for additional staff is not being met adequately and this causes increased pressure on current employees as they have extra responsibilities.

46

Large companies are facing the problem of not being able to cope with recruitment. “Recruitment is not keeping up to pace with growth.” On the other hand, small companies, often see not so well defined job descriptions and the lack the ability to recruit leaving the limited staff members in these organisations to tackle all the work.

Looking at different sectors, it is hard to point out any one particular industry where employee burnout is more concentrated; this is an issue that is experienced across all sectors alike.

The warning signs Statistics from Bayt.com’s Absenteeism in the Workplace in the Middle East & North Africa poll revealed that almost 32.7% professionals rate the working environment in their company as fair to poor. The same poll showed that almost a quarter (23.4%) of employees feel that the absenteeism in their organisation is high.

Robert Half UAE highlights the following warning signs that your employee may be “running on empty”: • Frequently late for work • Less productive • Frequently disagrees with managers or colleagues • Disconnected from work • Increased amount of sick leave • Negativity and emotional outbursts These warning signs point to an impending problem that employees need to notice in the early stages and take immediate action to alleviate the issue.

Measures to rectify the problem With eight in ten (81%) HR Directors concerned about losing top performers over the course of the year, employee burnout and work-life balance should be primary considerations in an organisation’s retention strategy.

Employers need to constantly ensure that their employees are maintaining a strong work-life balance in order for them stay motivated at work. To avoid further loss of productivity to firms, it becomes the top priority for HR departments and senior management to resolve employee dissatisfaction by taking serious steps.

James Sayer, Director, Robert Half UAE

Talking about initiatives implemented to prevent employee burnout, HR directors said they are reviewing or restructuring job functions and tasks (47%), promoting a teamwork-based environment (47%), encouraging employees to take time off (36%) and encouraging team-building activities (28%). Satisfaction and happiness are often fundamental to maintaining a balanced work life and monetary value is secondary. Sayer comments, “Money is not completely important; it is more about being happy and comfortable.

On the other hand, employees can take certain steps to help themselves too. It is vital for employees to convey their thoughts on the work they do as well as create a clear and honest outline of the duties they are able and willing to perform. “Employees should try and recognise when the workload has reached a point where they can’t handle it anymore and initiate open and strong communication with their immediate supervisor,” advised Sayer.

“We’ve seen increased hiring across the UAE, with a recent survey indicating that one in three (32%) companies are planning to create new permanent positions in the first half of the year. As workloads continue to rise, hopefully the additional hiring will bring much-needed resource to overstretched, over-worked teams, helping with morale and motivation, as well as retention levels.”

HR Directors report the factors that contribute most to employee burnout 63%

Workload

57%

Overtime/ long work hours

37%

Economic pressures

33%

Inability to balance personal and professional commitments

29%

Lack of recognition

Unachievable expectations

28%

Operational inefficiencies

21%

Bad relationship with manager and/or colleagues

12%

Lack of positive and timely feedback from management

11%

Lack of clear and defined business/ departmental strategy

8%

Source: According to a survey conducted in December 2012 by recruitment specialist Robert Half. The survey was conducted by an independent research firm & includes responses from 75 HR directors from Abu Dhabi & Dubai

89% Dubai-based employees work longer than their contracted hours

24%

Work over-time every day of the week based on a survey conducted in June 2012

Source: According to a Robert Half survey conducted in June 2012

81% HR directors are concerned about losing top performers over the course of the year as reported by a survey conducted in December 2012

April 2013

47

Source: According to a Robert Half survey conducted in December 2012

BUSINESS PIN UP

48

SETTING THE TONE FOR SUCCESS From its startup in 1999, German Imaging Technologies (GIT) has become highly successful at producing OEM compatible toner cartridges and providing workspace printing solutions. Rushika Bhatia speaks to Dr. Sassan Dieter Khatib-Shahidi, Co-Founder and CEO, GIT, to discover his recipe for success and GIT’s journey of growth.

“

I have always been passionate about entrepreneurship and production. It has been about creating something from nothing,” says Dr. Sassan, when asked about how it all started. Before the start of GIT, Dr. Sassan was an Attorney at Law in one of Germany’s top law firms, with a law degree (1993) and doctorate (1996) (magna cum laude) from the University of Konstanz.

Explaining how their initial model failed and they were at the point of bankruptcy, Dr. Sassan reminisces how they were faced with the choice to close down and leave or, stay and fight adversity. GIT has come a long way since then.

Value proposition GIT has managed to establish a niche within the industry and it is interesting to note how they are differentiated from competitors.

“What makes us different is that we produce and own our brand. So from A - Z, everything is controlled. Additionally, we have only one focus; just empowering businesses to print.” By concentrating on what they do best, Dr. Sassan believes they are able to exceed their customer’s expectations, which is another factor he attributes to being successful.

“Client satisfaction is one of our core values and all our employees live by this. Our entire structure of procedures

April 2013

49

BUSINESS PIN UP

The GIT

SIX

of the Best Declaration GIT declares what they attempt to do:

Minimise

Recapture

their waste

anything of use

Educate

about environmentalfriendly policies

Reuse

Remanufacture

what they recapture

what they recapture

Disassemble what is at the end of its life

Source: www.gitdubai.com

50

revolves around this and our decisions are customer centric. For instance, 95% of our product shipments are delivered overnight. So it is important to not only preach it, but live and breathe it. This is something important in whatever industry you are in,” continues Dr. Sassan.

He further emphasises that it is not just the product and pricing that is significant, but the whole package delivered and the approach. There needs to be instruments put in place to determine that. “We have certain KPIs and we measure, not just sales figures, but the retention amount.

This is the direct control measure against satisfaction. We have a dedicated team of customer service representatives who conduct surveys of new customers, existing customers and; not forgetting the lost customers. We ask them why they discontinued with us, and whether it was the product, price or overall service.”

Sustainable Initiatives Being one of five finalists under the Sustainable Initiative of the year category, of an annual event in 2012, what also sets GIT apart is their strong stand on sustainability. Being an environmental-friendly business at heart, their mantra is: embrace, reduce and reuse; not just recycle.

“There are three things that I love the most about my business; creating jobs, creating something from nothing and being environment friendly. We strongly believe that just recycling is not enough. You need to reuse and reduce as well.” Remarkably, Dr. Sassan adds, GIT has been able to remove approximately 1.4 million kilograms of CO2 from the Dubai atmosphere over the past five years.

Accolades GIT has many achievements to its name.

It was ranked 63rd fastest growing in 15 countries on Arabia 500. Dubai SME 100, a premier ranking of Dubai’s 100 top performing SMEs, ranked them as 11th overall in its first year of operation, sixth in financial growth and fourth in human capital development. Dr. Sassan, expressing his delight, says, “We are proud to be given this recognition.

When we work for 11 years and there is no measure, gauge or comparison, these rankings encourage us that we are

Dr. Sassan Dieter Khatib-Shahidi, Co-Founder and CEO, GIT

Client satisfaction is one of our core values and all our employees live by this. Our entire structure of procedures revolves around this and our decisions are customer-centric. For instance, 95% of our product shipments are delivered overnight. on the right track. They brought some transparency in the market.”

What makes these rankings of added importance, he reveals, is that they are based on facts and figures; they are directly based on your achievement.

Indeed these rankings have brought them visibility and exposure, which has in turn enabled them to be a part of several roundtables and other keynote initiatives.

Human capital development Being ranked fourth in human capital development by Dubai SME 100, GIT ensures that they create a secure, safe and happy environment for their employees.

They have a printed HR manual provided to every staff member that clearly lays down the policies to be strictly followed.

With steadily increasing staff numbers from 38 in 2011 to almost 70 today, GIT has invested in two full-time HR personnel that are involved in talent hunting and performance-based assessment. All their employees are offered incentives and a chance of improvement, in accordance with the company’s grading system, if they achieve their goals.

Dr. Sassan mentions that they strive to keep their employees content by taking care of their needs. “The sole avenue to customer satisfaction is employee satisfaction,” advises Dr. Sassan.

Growth and expansion The future seems bright for GIT; their growth figures for the period 2008 to 2012 were, on average, 28% per annum, as reported on their website. “We have heavily invested back into the business

April 2013

51

BUSINESS PIN UP

and witnessed a growth in the company.

We have added 16 new positions this year,” says Dr. Sassan.

They extended their activities to Abu Dhabi in 2012, setting up an alone sales office, with a team of three people and with a mission to soon be on par with their Dubai office commercially. They envisage having close to 12 people working out of the capital by the end of 2013. With a total of 28 members in their sales force, GIT recently opened a new sales office in Downtown Dubai, “The main goal was to house the sales team in a corporate environment. Also, as we become bigger, we of course require more space.”

GIT also credits a part of their success to the appointment of independent Board of Directors in January 2012, as part of the Corporate Governance Code implemented by Dubai SME. “Corporate governance provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are

determined,” as stated in OECD (2004) Principles of Corporate Governance.

These Board of Directors assist in outlining the mission, vision and five year growth strategy of the firm in one conclusive package, says Dr. Sassan. He adds that there have been times when the Board has suggested ideas that have subsequently turned out to be very profitable business decisions.

“Dubai SME has been one of the single best initiatives. We have adopted the Corporate Governance template.

The Board of Directors are external independent Directors, each having a different expertise. They require the annual budget, five year growth plan and business plan. The board has helped in creating, processing and presenting the data in a much better fashion. We have increased data accuracy and this is important because it is the basis of decision making.”

What lies ahead?

Discussing his plans for the future, Dr. Sassan is very optimistic. “My vision

GIT’s road to success

2000 GIT began selling remanufactured toner cartridges

2001 Started offering printer services for clients

2007

2012

Began to offer MPS solutions

Opened a new office in Abu Dhabi and additional premises in Dubai

2012 Employee role reached 70 staff members and continues to rise

Source: www.gitdubai.com

52

2010 Began to offer MPS solutions

“Dubai SME has been one of the single best initiatives. We have adopted the Corporate Governance template.

They require the annual budget, five year growth plan and business plan. The board has helped in creating, processing and presenting the data in a much better fashion. We have increased data accuracy and this is important because it is the basis of decision making.”

is to make GIT one of the best places to work in the UAE. We also hope to expand into the GCC; Qatar, Kuwait, KSA, Bahrain and Oman. Additionally, further into Iraq and Africa. We want to be number one in the MENA region in this industry.”

“Entrepreneurs are of a different breed. They are doers, not talkers.” He describes three main qualities to keep in mind, “Success of any entrepreneur depends on one keyword, which is adaptability. You have to build capital, make a business plan and map out a strategy, but in the end, once your business kicks off, you have to adapt and that is the reality. You have to learn to love challenges. Your life as an entrepreneur is essentially solving challenges.”

He also explains how aspiring entrepreneurs today get caught up in finding new ideas whereas he thinks the key is to take existing ideas and execute them in a better fashion. “I invite young entrepreneurs to copy ideas but what is vital is to execute differently. Ultimately, business is all about execution and not just about ideas,” concludes Dr. Sassan.

Less actual (more virtual)

More points

wire Less

sophos

Sophos UTM 100

Gives small businesses access to enterprise-grade security at a fraction of the cost.

Includes many of the capabilities typically reserved for enterprise solutions, such as: 

Web Application Control features



Network Firewall & IPS



Remote Access and VPN



Wireless Protection



Web antivirus and URL filter



Email antivirus and anti-spam capabilities

You’re safer in our world For more information: www.sophos.com/unified Sophos Middle East | Office 205-EIB 5 | Alpha Building PO Box 500469 | Dubai Internet City | Dubai | UAE Email: salesmea@sophos.com | Tel: +971 4375 4332 | www.sophos.com

Unified

Web

Email

Endpoint

Mobile

Network

Data

SECURITY

A contradiction in terms?

Many SMEs are open-access environments, where the emphasis is on providing a warm welcome, rather than a culture of strict security. So how best to regulate footfall, deter unwelcome visitors and maintain visitor and staff safety? Editor Paul Godfrey spoke to the Institute of Risk Management.

54

firearms, or - in the case of a hospital or clinic - Class A restricted drugs. So, how to tell bona fide customers from unwanted visitors and implement the level of security that’s appropriate to each risk in turn?

Rule No. 1: if possible, keep the trouble away It makes sense to keep potential troublemakers at arm’s length and prevent any problems from entering the premises, if possible. The classic way to do this is by using a perimeter fence, which will not necessarily have to be kept closed during working hours, but which has the potential to create a ‘locked down’ area if needs be. It should have manned, gated entry - and whether or not every vehicle or visitor is stopped depends very much on the nature of the situation. For example, a routine ID check and request for

It makes sense to keep potential troublemakers at arm’s length and prevent any problems from entering the premises, if possible. The classic way to do this is by using a perimeter fence.

A

lthough the challenges of maintaining security in a bank, a cash office or a medical laboratory may seem severe, they are actually far less than the perils and problems of maximising safety in an area that’s largely open to the public.

While hospitals, schools, and galleries are classic examples, so too are retail showrooms, health spas, riding stables and shooting clubs. All require varying degrees of security, since if intruders are left to their own devices they could potentially endanger the lives of visitors and staff, or steal cash, valuables,

a membership card or a guest invite would be normal in the case of a rural riding stables or shooting club, but simply be out of place for a hospital or a spa. These will instead have to initiate security at the actual point of entry to the building.

In situations where a perimeter fence is appropriate, it should be three metres high, of wire mesh construction conforming to safety standard DIN EN ISO13857. The fence should be located at least 15 metres from the premises, creating a safe zone that is not only a valuable buffer, but which also provides a storage area for vulnerable or highvalue goods. The fence should be lit by

High Pressure Sodium (HPS) lighting working to a power of 6400 lumens.

(The moral of the story here is that if trouble is coming, it’s best to see it!).

Then lighting will beam into the secure compound inside the fencing and onto the area just beyond the gatehouse point of entry, helping the security team see approaching traffic.

The fencing should be secured by posts set in concrete mounts, since these are not only stronger than steel supports, but more durable in extremely hot weather conditions. There should be no more than two points of entry/exit: any more than this will weaken security and risks creating too many staffing and rota issues.

Entering the building All visitors should report to a main reception desk, strategically positioned so that it’s impossible to bypass on entering the building. (Just the presence of a desk of this kind can be enough to deter petty thieves and opportunistic intruders). A reception desk can also add to the sense of professionalism, making it suitable to be used not just in settings such as schools and ambulatory centres, but even in fully open-access environments such as car and retail showrooms. Staff should be warm and polite in tone - this is, after all, an open access building - but issue a Visitor Pass and gather simple information such as name, mobile number and car registration.

Practical security steps - the role of ‘zoning’ To maximise resources and ensure that security issues aren’t a drain on time or detract from core activities, it makes sense to introduce a ‘zoning’ system. This entails identifying where the maximum risks are and ensuring that those areas are the best protected.

Classic examples would be the cash office, database store and server rooms, staff lockers, rooms with key boxes and access cards, etc.

In practice, it’s best to create an approximate diagram of the premises, identifying which areas are low, medium and high risk. It’s then a question of ensuring that staff are always allocated to the ‘junction points’

April 2013

55

SECURITY

between zones. Anyone attempting to pass from a lower risk to a higher risk junction point should then be stopped and asked if they have a meeting, appointment or a reason to visit this strictly private area.

Meanwhile, zoning also means that the lower risk areas are treated in a more relaxed, accommodating way.

For example, in the case of an exclusive retail showroom or a gallery, visitors can check in at the reception desk and then be left to browse at their leisure. If, however, they wander towards a higherrisk zone, there will be a member of staff to guide them back.

Maintaining security in critical areas It is vital that if, for any reason, staff are not available to deter visitors from wandering into higher-risk areas, there should be physical systems to stop them gaining entry into areas where valuables and irreplaceable items are kept.

Access to all medium and high risk areas should be via security doors conforming to the safety standard DIN ENV 1627. It’s also advisable for these to be fireproofed to the FD30 standard, which means they can withstand a fire for up to 30 minutes without damage. The doors should be fitted with deadlocks conforming to safety standards DIN EV 179 and DIN EV 1125. In the case of a busy cash office, it’s a good idea for doors to be self-closing and self-locking, so staff don’t have to continually re-lock the door behind them. Also, always ensure that only small sums are ever left on the premises overnight: unless, for example, a delivery team has to be paid in cash first thing in the morning, there is no point in keeping more than an emergency fund of AED 2,000 in the building.

If there is no cash office, a sensible ‘middle step’ is to use a steel security cash desk - with lockable drawers meeting standard ISO9001:2000 5.

(This is preferable to using a cash box which can simply be picked up and carried away). This is ideal for protecting not only cash and cheque books, but as storage for irreplaceable hard copies of cash ledgers, share certificates, etc. A steel security desk of this kind can fit into any room, so it’s perfect for use by

56

To maximise resources and ensure that security issues aren’t a drain on time or detract from core activities, it makes sense to introduce a ‘zoning’ system. the human resources department, protecting staff files and confidential documentation.

One more point to note: all too frequently, wall-mounted key boxes are left open, with a range of company keys left unprotected. Key boxes must always be kept locked shut.

In terms of keyholders, there should be no more than three named keyholders to the cash office or database/server areas, regardless of size of company.

Using CCTV One of the biggest changes in the SME security agenda over the last decade has been the availability of reasonablypriced CCTV systems, which previously would have been cost-prohibitive and the preserve of larger, high-capital firms. Remember, though, that if a CCTV system is to be installed, the monitors have be watched 24/7 otherwise, it’s simply a waste of money.

So commitment to CCTV carries an additional staffing cost, and larger SMEs may wish to devolve this as a ‘security package’ cost to a reputable security firm.

The most cost-effective deployment of CCTV is to place cameras at the various cross-over points between zones: any visitor crossing into a medium or high risk zone can immediately be spotted and a member of staff assigned to investigate.

Cameras should be well-placed to view cash offices, server rooms, computer stores and staff locker areas.

Similarly, CCTV cameras should be placed around the perimeter of the premises, in locations able to view all entrances/exits (as well as windows).

If budgets permit, the traditional placement of CCTV cameras is to allow for one camera for every second junction post on the perimeter fencing.

A question of attitude While all of strategies mentioned here contribute to making an openaccess environment more secure, it’s a truism that the single most effective approach is for staff to be aware of intruders and not be afraid to ask the simple question: “Can I help you?” It’s frequently the case that intruders are able to pass from public areas to back offices with no interruption at all, with dire consequences. There’s no need for staff to be stern – just a simple, polite approach will not only deter a possible thief, but also underline the firm’s credibility for genuine visitors and customers.

April 2013

57

LEGAL

Cloud 9 or clouded vision?

For a huge number of SMEs, Cloud computing offers a flexible, attractive and highly practical business solution. Yet it can also open the door to a variety of security and legal concerns – and here, Al Tamimi’s Nick O’Connell reviews the dangers…

R

emote access computing services, whereby software applications, databases, data storage, network configuration and programming tools are made available to clients as a service, are becoming increasingly popular. Cloud computing allows businesses to convert capital expenses associated with IT systems and infrastructure into operating expenses associated with platforms, capacity and applications.

For many companies the business case is compelling.

Yet as with any business decision, it’s important to be fully informed and aware of the risks. In this article, the first in a series of two, we look at some of the core legal considerations associated with cloud computing.

Information As one might expect, issues relating to information and its security are crucial in the arena of cloud computing.

58

Many of the information-related issues that arise are closely inter-related. By signing-on with a Cloud Service Provider (CSP), and moving data to the CSP’s cloud, the CSP’s client is no longer in direct control of the data. Depending on the nature of the cloud (public, private or hybrid), the potential vulnerability of the data may vary. In some instances, where the CSP uses infrastructure located abroad, data is sent outside the client’s country. When data comprises personal data (such as information relating to the client’s customers or employees), the client needs to be particularly aware of its obligations with regard to data protection. In the UAE, the processing of personal data may be subject to the Penal Code prohibition on the disclosure of secrets without the consent of the person to whom the secret relates. Other laws may also be applicable where the personal data involves health insurance, medical records, and credit information.

April 2013

59

LEGAL

Moreover, for entities in the Dubai international Financial Centre and Dubai Health Care City, specific European-style data protection regulations also impact on the processing of personal information and sensitive personal information, including the vexed question of whether permission is required to transfer the data to another jurisdiction.

Before signing on with a CSP, the client should familiarise itself with the legal obligations relating to its handling of personal data. When negotiating the terms of service, the client should ensure that the agreement does not permit the CSP to engage in any conduct that would be inconsistent with the client’s own obligations in respect of personal data.

The client should also consider whether there might be any practical aspects of its privacy obligations that the CSP’s system would need to accommodate. (By way of example, in some jurisdictions, compliance with data protection regulations may require the ability to annotate records to reflect objections raised by the data subject. If the CSP’s system cannot facilitate this requirement, this may result in the client failing to comply with its legal obligations.)

Security of information is another important consideration. ISO 27001 is a standard that details requirements for establishing, implementing, operating, monitoring, reviewing, maintaining and improving an information security management system. It acts to formalise specific criteria for a range of IT securityrelated processes, including: information classification and handling; third-party access; incident management and communication; disposal of media; hiring, discipline and termination of staff; acceptable use of computer equipment; development processes; release and change management; and data access, availability and integrity. As part of its due diligence, a client should aim to engage CSPs that can show they are compliant with ISO27001. This certification illustrates that the CSP has implemented a wide range of security and privacy controls at all levels of its business and that all its employees have been educated in relevant security and privacy issues.

The client should seek to build compliance with ISO27001 into the terms

60

of service as a means of ensuring that the CSP will treat information security with the level of attention it requires.

Rules on document retention Rules governing document retention are another point to bear in mind when considering a move to the cloud.

Nick O’ Connell, Al Tamimi & Company

ISO 27001 is a standard that details requirements for establishing, implementing, operating, monitoring, reviewing, maintaining and improving an information security management system.

In the UAE, the Commercial Transactions Law (Federal Law No. 18 of 1993) sets out general requirements for the retention of commercial records, requiring that such records be retained for a minimum period of five years from the date of issue or receipt. With limited exceptions, the Electronic Commerce and Transactions Law (Federal Law No. 1 of 2006) provides that, where it is required by law to retain a certain document, record or information for any reason whatsoever, the retention

requirement shall be considered met if the document, record or information is stored in any electronic form. When engaging a CSP to manage commercial records, the client should focus on making sure that the terms relating to the document retention period are consistent with the requirements of the client’s own jurisdiction; and not with those of the CSP. Using your data In some instances, CSPs may consolidate the data of multiple clients in order to determine data usage patterns, business trends and strategies. If this type of use is undesirable, then the client should seek to have the terms of service prohibit the CSP from monitoring data usage and from using such confidential information of the client other than for the purpose of providing the cloud service to the client. (Such a restriction would, of course, be additional to any broader confidentiality provisions that should be specified in the agreement with the CSP.) A further consideration relates to the location of the client’s data when it is held in the cloud. In many jurisdictions, the government can require CSPs to disclose client data. In some jurisdictions, the law specifically protects data stored in the cloud from access by the government without due process. In other jurisdictions data stored in the cloud may be disclosed to governmental authorities without due process. Depending on the nature of the data, and the business of the client, it may be advisable to confirm with the CSP the location in which data will be held, and verify independently whether there are any local law concerns in such jurisdiction. It may also be appropriate to agree with the CSP that data will not be held in certain jurisdictions.

Al Tamimi & Company’s Technology, Media and Telecommunications team regularly advises on IT service agreements, including in a cloud context, as well as related issues such as data protection, document retention and confidentiality provisions. For further information, please contact David Yates d.yates@tamimi.com or Nick O’Connell n.oconnell@tamimi.com.

De Symetria designed by Luca Scacchetti

Executive Desks

|

Conference Room Tables & Chairs

|

Modular Desking Systems

|

Panelling Systems

Toll Free 800 OFFICE, Dubai Pyramid Center 04 358 2272, Doha Salwa Road 04 421 7941, Muscat Muttrah 24 523005, Aprilwww.officelandme.com 2013

61

INDUSTRY WATCH

B2B social interactions soar A recent survey by the UAE based multilingual social network, dudu.com, reported that B2B interactions on social networking sites in the GCC are expected to rise in 2013.

A

growing number of Internet users are utilising social media to interact with and reach out to brands. Timely responses encourage users to communicate with their favourite brands and engage in meaningful conversation. The survey was conducted by YouGov, a market research agency in the UAE. The study was based on a sample of 2,632 respondents from the GCC, 32% of which were locals and 68% expats.

The respondents to the survey are professionals, at mainly supervisory and medium to senior managerial levels, and work in various fields.

Alibek Issaev, Founder and Owner, dudu.com said: “B2B interactions on social networking sites have a different approach than B2C and can be utilised to generate awareness, build thought leadership and strengthen the brand. dudu.com conducted the survey to understand

We are already witnessing the trend of businesses taking multilingual social networks such as dudu.com more seriously to grow their business and the findings from the survey have reiterated the confidence. By connecting pages to the translation system, we are providing a very selective networking platform for businesses to interact with their niche target audience. the behaviour of Internet users in the GCC. As brands begin to explore the potential of their presence on social networking sites, the efforts to maintain a constant channel of communication are visible across the board.

Communication is personalised, responses are immediate and content shared is tailor-made to suit their target audience.”

Key Highlights of the research • 35% of Internet users in the GCC use social networking sites for business purposes of which KSA represents the highest at 43%.

62

Alibek Issaev, Founder & Owner, Dudu.com

• 93% of users in GCC using social networking sites for business purposes find it effective and useful. Kuwait represents the highest in this category at 96%.

• 16 % of users in the GCC use social networking sites to discuss products, services and brands. KSA and Bahrain represent 19% in this category individually.

• 55% of users on social networking sites in GCC are bilingual, 20% trilingual and 9% quadrilingual. of the users in the region use social networking sites Alibek added, “We are to stay in touch with real life friends already witnessing the trend of businesses taking multilingual social networks such as dudu.com more seriously to grow their business and the findings use it for connecting with from the survey have new people reiterated the confidence.

By connecting pages to the translation system, we are providing a very selective networking use it for connecting with platform for businesses new people with different to interact with their cultural backgrounds niche target audience.”

The translation service by dudu.com uses a selflearning system whereby it observes, understands use it to share videos and and corrects dialects with photos time.

62%

39%

32% 30%

SECURITY SOLUTIONS FOR SMEs Over the recent years, a rising growth is seen in the number of IT devices in corporations. At the same time, IT departments are being streamlined, with administrators juggling numerous projects in addition to their daily duties.

O

ptimum security with increasing numbers of devices Whether or not their company uses a “Bring Your Own Device” policy, employees today are using more IT devices than ever before. According to a survey carried out by Kaspersky Lab of 3300 companies worldwide, almost 80% of companies expect to see an increase in the number of IT devices used by their employees over the next year. Around 44% expect up to ten percent more devices; 27% expect an increase of ten to over 50%, and eight percent of the companies surveyed expect a large increase of more than 50%. A further 16% of companies expect their device count to remain stable, while just four percent assume that the number of IT devices will decrease over the next year. Without doubt, administrators comprehend that this means more work for them as all these additional devices must not only be managed, but also incorporated into corporate security strategies.

SMEs and the advanced requirement in security Only rarely does adding more IT devices mean setting up more on-site workstations. In most cases, the devices used are laptops, tablets or smartphones. As these are used not just at employees’ desks, but also on the move, at customers’ premises and at home, they place added demands on IT security. If something goes wrong, administrators are frequently required to offer remote assistance. Only a tiny percentage of the devices for which administrators are responsible are actually inside company walls. The rest are perhaps scattered all across the globe. A few years ago, only globally active companies with multiple branches in different countries had to deal with these issues. Today, on the other hand, even small companies, particularly SMEs, are affected by them.

Escalating pressure on IT administrators Companies in this category commonly find large enterprise management solutions complex. Furthermore, only some of these companies are increasing their budgets to accommodate the extra costs and several cuts are being made in various areas of human resources development for IT administrators. To compare, in 2011, 24% of the companies surveyed by Kaspersky had 250 (or more) IT employees, whereas in 2012 this figure was just 15%. This consolidation is affecting companies of all sizes. As a result, fewer employees have to manage the ever-increasing numbers of IT devices running smoothly and securely. To prevent this task from spelling disaster for companies, IT administrators must become more dynamic. A combination of management and security software is recommended.

Simple management, perfect security The words “system management” tend to send shivers down administrators’ spines, with many assuming that they refer to complex and overblown software for major corporations. This is, however, not necessarily the case. The perfect solution for small and medium-sized companies merges device management with the latest security technology and features a unified interface to enable the administration of workstations, laptops and smartphones. Solutions which allow administrators to adjust devices’ security configurations directly from this interface, when applying patches or checking malware warnings, for instance, provide extra value. The software should support administrators in these areas by providing automation and templates. These features allow recurring tasks to be completed with minimal effort, thus freeing up time for other duties.

STATS

Almost

80%

of companies expect to see an increase in the number of IT devices used by their employees over the next year.

April 2013

63

INDUSTRY WATCH

cloud services: A POPULAR CHOICE A recent survey revealed 80% consumer demand for personal cloud services and identified the personal cloud as a rapidly growing area of the mobile industry.

A visual from Gemalto’s LinqUs Cloud Backup

G

emalto, an international digital security company, released a global survey that underlined the potential for mobile network operators to introduce their own cloud-based data backup and sharing services to their subscribers. The survey showed a growth in the

The response from participants confirms that there is a fear amongst mobile users of losing valued personal content such as contact details, and the results show that more than half the respondents had already suffered losses at least once. This is an untapped market. consumer demand for personal cloud services such as data back-up and content sharing. 77% of those surveyed agreed that security for their back-up solutions was vital. 80% said they would use cloud services if it was provided by their mobile operator and 60% of interested respondents accepted the need to pay extra

64

for such services.

With an estimated number of over 500 million personal cloud accounts worldwide, consumer awareness of cloud storage is on the rise with usage following suit. In 2011, seven percent of consumer content was stored in cloud and the figure is set to reach 36% in 2016 as reported by Gartner.

Over 4000 respondents from around the world participated in the 2012 survey with a majority showing strong interest in back up and sharing services. Different enduser profiles were identified according to their backup and sharing habits. Groups included; digital learners, hesitating followers, techno pragmatics and cyber addicts. 50% of survey participants revealed that they have already experienced the loss of personal content with one in three people admitting that they still do not use any backup solution.

“The survey depicts that there is potential for mobile network operators to introduce their own cloud-based data backup and sharing services to their subscribers,” said Christelle Toureille, Marketing Director, Middle East and Africa, Telecommunication Division, Gemalto. “The response from participants confirms that there is a fear amongst mobile users of losing valued personal content such as contact details, and of those surveyed agreed the results show that more that security for their backthan half the respondents up solutions was vital had already suffered losses at least once. This is an untapped market.”

LinqUs Cloud Backup is Gemalto’s new of those surveyed said they private file sharing and would use cloud services storage product and if it was provided by their was showcased at the mobile operator Mobile World Congress in Barcelona. Gemalto has already supplied its LinqUs Cloud Backup solution for protecting of interested respondents contact data to over 140 accepted the need to pay million mobile users extra for such services across the globe.

77%

80%

60%

SME Insurance Solutions from AIG

Our SME Portfolio ;

Office

;

Clinicare

;

Property Owners

;

Retail

;

Select

;

Food & Beverage

;

Personal Care

;

Educare

All businesses face similar exposure and risks but we at AIG recognize that each and every business is unique; with this in mind we have designed a product especially for you.

We understand that customers are the centre focus of small businesses and that even the smallest incident can interrupt your daily operations; this is why we at AIG believe that it is not about replacement or repairing, it is about restoring your business to its original capacity.

You can relax in the knowledge that our fast, reputable claims handling service will get your business back up and running promptly, just give us call and we will handle the rest.

Learn more at www.aig.com

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. Products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Not all products and services are available in every jurisdiction, and insurance coverage is governed by actual policy language. Certain products and services may be provided by independent third parties. Insurance products may be distributed through affiliated or unaffiliated entities.

INDUSTRY WATCH

Top priorities for IT departments IT professionals will have to carry out an increased number of tasks with only average proficiency levels as reported in a survey published by global consulting firm, Protiviti (www.protiviti.com).

T

he survey on IT risk factors, 2013 IT Priorities Survey (www.protiviti.com/ITsurvey), intended to assist IT departments to identify the fundamental areas that need attention. The survey found that IT executives struggle to manage the wide variety of technology risk, regulatory compliance and performance challenges that now face them.

About 200 CIOs, chief technology officers, chief security officers, and IT vice presidents/directors were asked to rank their competency in key areas of IT technical knowledge on a scale of one to five, one being the lowest and five being the highest. The results showed a 2.8 average rank in social media security, social media integration, mobile commerce security, mobile commerce integration, and mobile commerce policy.

“The continued rapid global expansion of the smartphone and mobile applications marketplace reflects the strong

The result is significant pressure on IT departments and business leaders as they are asked to deliver more mobile technology-enabled services. This pressure forces them to take on considerably more risk than they’re prepared for; especially in terms of policy, integration, data management, security and data privacy related to mobile commerce and social media proliferation and innovation.

66

demand from business leaders and consumers to access information anytime and anywhere, which presents exciting opportunities for delivering value. However, it also creates greater technology risk potential,” said Kurt Underwood, Managing Director at Protiviti and leader of the firm’s global IT consulting unit. “The result is significant pressure on IT departments and business leaders as they are asked to deliver more mobile technology-enabled services. This pressure forces them to take on considerably more risk than they’re prepared for; especially in terms of policy, integration, data management, security and data privacy related to mobile commerce and social media proliferation and innovation.”

Among 21 areas of technical knowledge, the survey respondents identified social media security and mobile commerce security as the areas that require the most improvement. CIOs and their staff members indicated that they intended to strengthen their cyber security capabilities in order to tackle the growing threat of breaches and potential incident response procedures as well as ensuring their compliance with the increasing number of state and federal information security requirements.

Executive-level respondents also rated mobile commerce security, policy and integration among their top five priorities in the new survey’s technical knowledge section, which contrasts strongly with the 2011 survey in which none of these areas made the top of the list. Interestingly, challenges related to virtualisation and cloud computing receded in the rankings compared to 2011, suggesting IT departments have a higher level of confidence in managing these areas.

Survey results also highlighted the following findings related to IT processes and capabilities: • Managing and classifying enterprise data is the number one security and privacy area in need of improvement, and remains a major challenge for IT departments.

• The IT function’s top priorities are related to strategy and organisation, reflecting a need to enhance the clarity and precision with which IT performance is measured, monitored and reported internally and externally.

• In terms of IT infrastructure, platform performance planning and storage management and planning are listed as top concerns, with respondents ranking their competency level in these categories at 2.8 on a scale of one to five.

• Three primary priorities in the “ensuring continuity” category are developing and maintaining business resumption plans; developing and maintaining IT disaster and recovery plans; and developing and maintaining crisis management plans.

An ideas & innovation company

Driving Your Business Forward

JLT, Dubai - UAE www.GoMadideas.com

T +971 4 4471 200 info@GoMadideas.com

INDUSTRY WATCH

UAE’s pIVOTAL POSITION A recent visit by a delegation from the United States helped mark the UAE’s strong position as a marketing focal point for the region.

Dr. Hassan’s book signing at Pearson, Dubai

D

r. Salah S. Hassan, Ph.D., an expert from the United States’ George Washington University School of Business, visited the country along with 15 of his MBA professional students. The main focus of the visit was to recognise Dubai’s position as a marketing hub for the region and to further understand the different forces that impact the economic success of the Gulf region.

“For a number of years now, the UAE and its neighbours have been an important place for leading international firms to do business, given the political stability and strong economic growth enjoyed by the region. This makes the UAE important for both local and multi-national corporations to understand how to make the most of these favourable conditions, so they can boost their bottom line and improve their strategic market position in an increasingly global marketplace,” commented Dr. Hassan.

The delegation visited several local and international firms based in Dubai, Abu Dhabi, and Sharjah including

68

advertising agency, Leo Burnett, to identify what constitutes a successful marketing strategy in the Gulf, and to gain an in-depth insight of the marketing behaviour in the Arab World.

The students worked with firms to design and analyse local marketing programmes, review successful regional marketing research and appreciate the unique cultural sensitivities that need to be considered when conducting a marketing campaign in this region. The students, divided into four teams, aimed to develop strategic marketing plans that address local and regional issues while working in partnership with the companies.

Impressed with the seriousness showed by the MBAs from the George Washington University, Kamal Dimachkie, Executive Regional Managing Director, Leo Burnett said, “It is important that our next generation of marketing experts understand the unique cultural, religious and political nuances of the Arab region if they want to be able to effectively market goods and services in this increasingly important market.”

The group also visited the regional headquarters of the education, publishing and media group, Pearson, where they received copies of Pearson’s Arab World Edition textbook, Marketing Management. Dr. Hassan, who is a co-author of this book, said that the marketing potential of the region has long been neglected by marketers: “Finally, we are waking up to the huge business opportunities of this region, and understanding how we can harness them through culturally relevant and competitive marketing tools.

This international residency programme, which is now in its sixth year, along with Pearson’s recent publication of a book especially tailored to the needs of the local market, are a step in the right direction. I believe all companies operating in this region, no matter how big or small can do more to tailor their marketing campaigns to better identify and respond to the demands of the Arab world.”

Pearson’s Regional Executive Marketing Director, Sue Mainey said that the visit reinforced the significance of creating educational resources that focused on the learning needs of Arab students, saying: “Here at Pearson, we are committed to providing our customers with learning resources that reflect the needs of those using them. We want to provide learners in the region, across all levels and disciplines, with materials they find engaging and inspiring.

Our Arab World Edition of Marketing Management gives students from this region the very best in international business and marketing research, but presents it in a way that resonates with Arab students, and ultimately leads to them achieving at higher levels”.

Working mums stimulate growth Returning mothers, with their key skills, can prove to be an asset for firms as revealed by a Regus survey.

M

iddle Eastern respondents of a Regus survey reported that greater flexibility, near-site crèche facilities, increased use of video-conferencing technology and more job sharing are key factors to get professional women back into the workforce after maternity. The survey interviewed over 26,000 business people from more than 90 countries.

Following these results, authorities stressed that higher participation of women in the workforce is vital to sustaining and driving growth. Returning mothers are key to economic development, and at a business-by-business level, respondents reported that hiring returning mothers helps improve productivity, by lowering training and hiring costs.

This result is in line with the previous Regus research which showed 56% of businesses globally value part-time returning mothers because they offer skills and experience which are difficult to find in the current market and 72% believe that companies that ignore part-time returning mothers are missing out on a significant and valuable part of the employment pool.

Interestingly, extra vacation days were the least popular measure selected by respondents as critical to help women get back to work after maternity, highlighting that radical changes to work habits are required rather than additional days of rest.

Middle Eastern workers report that critical measures to encourage women back to work after maternity are: • Flexible working hours (92%) • Option to work closer to home (91%) • Near-site crèche facilities (85%) • The option to choose video-conferencing over travel at least some of the time (70%) • Job sharing (65%) • Additional vacation days (64%) Garry Gürtler, VP for Middle East and Africa, Regus, comments: “There is a strong case for the greater inclusion of returning mothers in the workforce. Increased GDP, sustained growth, bridging the skills gap and fighting poverty are just some of the benefits. Even on a business level the benefits of re-integrating women after maternity are plenty: access to skilled and trained workers, less staff turnover and even increased productivity as this survey reveals. Yet the workforce continues to lose able and trained workers with key skills and qualifications as women find the burden of childcare cannot be reconciled with working life.”

As working habits globally evolve in favour of greater flexibility, this research suggests that changes in working practices are urgently required for returning mothers whose contribution to the business and the economy is otherwise hampered.

Garry Gürtler, VP for Middle East and Africa, Regus

“As working habits globally evolve in favour of greater flexibility, this research suggests that changes in working practices are urgently required for returning mothers whose contribution to the business and the economy is otherwise hampered.”

Regus is a provider of flexible workplaces, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and a large network of video communication studios.

April 2013

69

TECHNOLOGY FOR BUSINESS

Acer unveils giant Android display Acer’s DA220HQL looks like a giant Android tablet, with its 1920 x 1080 pixel, 21.5-inch touch screen; but you wouldn’t want to carry it around.

T

hat’s because the All-in-One Android display weighs 4.8 kilograms and has no battery, so needs to be plugged in to operate.

Acer spokesman, Manuel Linnig, said at an Acer event, on the sidelines of the CeBit trade show in Hanover, Germany that the display has three main uses.

The first is as an information kiosk.

Propped up on its built-in stand at an

angle of 75 degrees, it can be used to surf the Web or view videos. Folded down to a 20 degree angle, the display finds a second role, as a giant tablet, allowing the user to interact with it more easily without the risk of gorilla arm, the sensation of heaviness felt after a few minutes of operating a touch screen with one arm raised out in front of the body. Finally, with a laptop computer connected to its micro-HDMI socket, the display can be used as an additional or external touch-sensitive screen.

In addition to the HDMI socket, it has an Ethernet port, three USB ports, 802.11 b/g/n Wi-Fi, Bluetooth 2.1, a 1.2 megapixel webcam, stereo speakers and a socket for micro-SD cards up to 32 GB in capacity.

Inside the display is a one GHz dualcore ARM processor with one GB of RAM and eight GB of ROM holding an almost-vanilla version of Android 4.0 (Ice Cream Sandwich).

The main addition Acer has made to the standard Android interface is the Acer Ring: Touch a glowing green circle in the toolbar at the bottom of the screen and a circular menu pops up offering quick access to a browser, gallery, screenshot tool and settings, with shortcuts to open applications fanning out around the circle. Other apps, including Skype and YouTube, can be added from the Android App Store.

Acer aims to keep the interface as similar as possible across all its Android products so that users feel at home with them, according to Linnig.

Source: cnmeonline.com

WatchGuard to release new XTM models WatchGuard Technologies has announced the upcoming availability of seven new models in its line of extensible threat management (XTM) products.

I

t will also release the Fireware XTM 11.7, a software update for its XTM suite of network security products, on top of the recent expansion of its unified threat management (UTM) portfolio. The XTM developments are intended to keep organisations protected against information security risks,

and will be available in the Middle East from March 30.

“Historically, mediocre UTM performance has kept adoption limited to small and midsized businesses,” said Haroon Iqbal, Sales Manager, MEA, WatchGuard Technologies.

“Since re-architecting our business three years ago, WatchGuard’s relentless focus on delivering high-end UTM

performance means we can now provide customers of any size with the highest level of protection in one speedy and scalable box.”

Fireware XTM 11.7 offers an enhanced URL filtering database from strategic partner Websense; VPN applications for Android and iOS devices; support for IPV6 and L2TP VPN; and

Access our readily available talent pool today.

Talent meets opportunity at nabbesh.com, the Middle East’s skills marketplace.

70

improved policy grouping.

The XTM models feature dynamic routing, wide area network (WAN) failover, server load balancing, and link aggregation.

The new WatchGuard XTM 800, 1500, and 2500 series appliances feature the latest Intel Xeon multicore CPUs and QuickAssist technologies.

Source: cnmeonline.com

“We thought we’d need Dell’s help, but after the demonstration we saw how simple EqualLogic is to use and we set up our storage environment within days.”

Mohamed Raafat Atia Technical Services Manager Digital Solutions Provider

Do more with Dell networking and storage Solutions See how Dell helped Saudi services and consulting company, DSP, build a highly-scalable, reduced server-footprint environment. Enabling support surveillance solutions for three of Saudi Arabia’s largest hotels using Dell PowerEdge servers and EqualLogic storage.

Read the full case study at YourDellSolution.com/me/servers

©2012 Dell Products. Dell, the Dell logo, EqualLogic and PowerEdge are registered or unregistered trade marks of Dell Inc. in the United States and other countries. Intel, the Intel logo, Xeon, and Xeon Inside are trademarks or registered trademarks of Intel Corporation in the U.S. and/or other countries. Other trademarks or trade names may be used in this document to refer to third-party products (such as operating systems and software) included with the products offered by Dell and the entities claiming the marks and names of those products. Dell disclaims proprietary interest in the marks and names of others. Dell Corporation Ltd, Dell House, The Boulevard, Cain Road, Bracknell, Berkshire, RG12 1LF.

TECHNOLOGY FOR BUSINESS

SME customer roadshow The changing needs of small and medium-sized enterprises throughout the Middle East, Africa and Turkey to be addressed at Avaya’s eight-city customer roadshow.

With more than ten million[1] small and medium-sized enterprises driving the growth of GDPs across the wider Middle East region, Avaya, a provider of business communications applications, systems and services, is talking directly to these businesses about how to become more efficient and customer-focused.

Identifying organisations with fewer than 500 employees as The New Big force in powering regional economies, Avaya’s eight-city roadshow for the UAE, Saudi Arabia, Turkey and Africa will focus on empowering SMEs to collaborate with customers, colleagues and suppliers through a range of collaboration, video and networking solutions.

“Mid-sized organisations currently account for up to a third or more of the GDP in countries across the Middle East, Africa and Turkey, and it is essential that they are properly equipped to achieve their business and growth objectives. The days of complicated IT solutions, intended for larger enterprises, have come to an end; SMEs are busy expanding their core businesses, and need simple solutions that embrace innovation,” said Nidal Abou-Ltaif, VP of Middle East African and Turkey, Avaya. “SMEs are constantly growing and agile; they invest in new technology because they understand that in order for their organisation to grow, they need to take informed decisions about which solutions can make them more competitive and customer-centric.”

Under the theme The New Big, customers attending the Avaya Forum will learn how Avaya has simplified the complexity of business communications systems, while retaining vital collaboration features. Avaya IP office, suitable for SMEs with as few as five employees, now scales up to 1000 users.

This solution gives mid-sized companies in the Middle East, Africa and Turkey a more cost-effective, simplified way to manage growing staff on a network across one or multiple sites.

Avaya IP Office can also be paired with Avaya’s recently introduced ERS 4000 series switches and Wi-Fi solutions to automate network set-up.

One simple command automatically configures the switches and enables collaboration features; a time-saving, straightforward process that’s ideal for SMEs, which may not have dedicated IT staff. In addition, Avaya has made video more mobile, accessible and affordable to mid-size enterprises; customers no longer need to confine themselves in expensive video conferencing rooms to stay visually connected with their customers, peers and partners on their device of choice being an iPad, laptop or an android device.

After launching in Dubai, the Avaya Forum will make stops in several cities in the coming months, including Jeddah, Riyadh, Istanbul, Nairobi, Cape Town, Durban and Johannesburg.

[1] According to Consulting group McKinsey & Co

(source: Zawya) The New Big PRL

ARIS 9.0 launched at CeBit Software AG announced the availability of ARIS 9.0 at the CeBit trade show in Hanover, Germany.

The vendor said that ARIS 9.0 combines the four emerging technological forces of cloud, mobile, social and big data, making them available for a broad user group within an enterprise.

For example, users can access the platform via mobile devices, Software AG said.

A big part of ARIS 9.0 is that it addresses rolespecific expertise and a variety of individual requirements. Software AG said it can provide every user within an organisation with the right tools environment, product perspective and user interface, coupled with the right information and data.

The new user interface looks has a browserbased look and feel to it, which should save time by shortening the path between individual functions.

The new platform also provides relevant results for the daily business of all stakeholders, including advanced analytics capabilities, dashboard technologies, spreadsheets and simulations capabilities.

“An agile business structure that enables companies to align with IT business goals is a key component of our strategy of generating maximum value for our customers,” said Wolfram Jost, CTO, Software AG. “ARIS offers high performance, user-friendliness and comprehensive functionality while supporting company-wide collaboration. The ongoing development of ARIS to combine social, cloud, mobile and big data/analytics is attracting a lot of attention from our customers.”

A part of the new platform is ARIS Connect, which is fully cloud capable and can be deployed in public, private and hybrid infrastructures. It works with a new HTML 5-based client technology to enable access via mobile devices.

Source: cnmeonline.com

Post a job for free and receive applications to your personal account.

Talent meets opportunity at nabbesh.com, the Middle East’s skills marketplace.

72

TECHNOLOGY FOR BUSINESS

Apple implements twofactor authentication

ThinkPad Edge for SMEs

Apple has followed the lead of its rivals like Facebook, Google and Microsoft, offering two-step authentication to help customers secure their Apple IDs against hacking.

Lenovo and Mindware, a distributor of IT products for the Middle East and North Africa, have joined forces to help boost connectivity and productivity amongst the region’s SMEs.

T

he new feature is designed to block unauthorised changes to iCloud or iTunes accounts, and keep hackers who steal Apple IDs from purchasing digital content or hardware using the credit cards stored in customers’ iTunes and Apple Store accounts.

“Always exciting to see a major consumer-oriented service roll out some sort of twofactor authentication,” said Jon Oberheide, Co-Founder and CTO of Duo Security, a developer of authentication software, in an email. “Rolling your own twofactor definitely isn’t a trivial task, both from an upfront engineering cost and continued support and maintenance, despite the perceived ease from an external view.”

Two-factor authentication; sometimes called two-step verification; is a more demanding method of locking an account than a password-only process.

In enterprises, for instance, twofactor relies on hardware tokens that generate pass codes, which are valid for just moments and must be entered along with the usual password. Web services, however, don’t distribute tokens.

Instead, they send a pass code to a mobile phone number the

account owner has set earlier. The pass code is typically sent as an SMS (short message service) text.

Apple’s optional two-factor authentication uses that same approach, but also will send the pass code to an iOS device, iPhone or iPad, via the Find My iPhone application’s notification feature.

Find My iPhone, on the other hand, operates independently of the wireless carrier, letting iOS owners get pass codes when all that’s available is Wi-Fi, or on tablets like the iPad and iPad mini that lack cellular connectivity.

Andrew Storms, Director of Security Operations at nCircle Security, had different thoughts the advantages of Find My iPhone. “It has some potential for good contextual awareness authentication,” said Storms in an interview via instant messaging.

Apple also took customer service out of the equation, instead providing a 14-character recovery key for password resets or when the iOS device assigned to receive pass codes has been lost or stolen.

Apple, while not the last major technology company to add two-factor, was certainly not at the forefront. “They seem to be slow to implement all kinds of things that seem so obvious to everyone else,” said Storms.

Under a new agreement signed in March 2013, Mindware will become an official distributor of Lenovo’s Think product range including; ThinkPad Edge and Mohammed Hilili, General Manager at Lenovo Gulf and Mario Gay, General ThinkPad Classic for Manager at Mindware UAE, Kuwait, Bahrain and Oman.

ThinkPad laptops have been featuring in the PC industry for almost two decades, with upwards of 60 million sold thus far. With ThinkPad Classic designs crafted for especially large businesses, government and education entities; the ThinkPad Edge has been designed specifically for SMEs in order to meet different customer needs.

Commenting on the partnership with Mindware, Mohammed Hilili, General Manager Gulf for Lenovo, said: “We are excited to be partnering with Mindware to increase the availability of our Think range of products in the Middle East.”

“What is important for these entities to note is that technology can be the make, or break, of a strong business operation – a fact as relevant to a sole trader as to the most complex multinational organisation. At Lenovo we ensure our business products always help increase productivity and mobility without compromising on functionality or security,” says Mohammed.

Mario Gay, General Manager at Mindware, said: “The regions SME workforces tend to be highly mobile. As a result corporations need to equip their team with products that are robust, durable and lightweight; all key elements of the Lenovo Think range. We believe this partnership will help boost productivity amongst the SME community, helping put the right technology in their hands to support their growth, development and success.”

Hire great skill providers on a project-to-project basis.

Talent meets opportunity at nabbesh.com, the Middle East’s skills marketplace.

74

PRESENTS

JUMEIRAH BEACH RESORT November 28, 2013

Do you have what it takes?

NOMINATE NOW!

EXCLUSIVE TELECOM PARTNER

For a chance to be celebrated as one of the region’s top SMEs, enter your nomination at: www.smeadvisor.com/awards2013

INSURANCE PARTNER

STRATEGIC PARTNERS

KNOWLEDGE PARTNERS

SUPPORTING MEDIA PARTNERS

PUBLISHER

For sponsorship enquiries, please contact: richard@cpidubai.com, chris@cpidubai.com For nomination enquiries, please contact: paul@cpidubai.com, rushika@cpidubai.com

THE NEXT LEVEL

Where to steal a deal The acquisition of Cobone.com - the premium ‘daily deal’ site - by Tiger Global Management has provoked a torrent of industry comment and is already seen as an iconic role model for aspiring entrepreneurs. In an exclusive joint interview with Paul Kenny, CEO and Founder, Cobone and Warrick Godfrey, Co-Founder, Cobone, we’re delighted to present an insider’s guide to a benchmark transition...

F

ounded in 2010 by Irish entrepreneur, Paul Kenny, Cobone is an appealing example for many small businesses, especially those looking to expand across the region. Starting as a local firm providing customers with great deals and premium discounts, Cobone has risen quickly to the top. In fact, it was rated as one of the most popular online purchasing websites in the UAE (just after Emirates Airlines), according to a MasterCard Worldwide survey.

Continuing on the path to success, the business was recently acquired by Tiger Global Management - a move that has

76

already become a signature transaction for aspiring entrepreneurs and startups in the e-commerce sector.

The backstory…

Experiencing rapid growth, the time seemed right to take things a step further, explains Kenny - revealing the main motivation behind the sale. The buyout will give Cobone a chance to expand across the region with valuable access to added financial capital.

“When a business is growing fast, you need an additional infusion of financial resources to take it to the next level. We were searching for a strategic partner and when Tiger Global Management

came along we knew they were the right choice.”

Emphasising the importance of selecting an appropriate partner, he adds: “One of the main criteria we had in mind was that we wanted someone who could align their goals with what we wanted to do. Tiger Global Management was very interested in investing in an emerging market. They wanted to be in it for a long term, versus just a short term partnership.”

The fact was that US-based Tiger Global Management’s investments in leading sites such as Facebook and LinkedIn (among a host of others) is another reason why they’re such an attractive partner. Along with these investments comes a high level of expertise

THE NEXT LEVEL

This is a very exciting trend and it’s a signal of what’s going to come. It shows that a large amount has been invested in the region and it’s brought attention to the UAE and the Middle East as an emerging market. that itself is an indispensable asset for Cobone. As Kenny and Godfrey add: “They have valuable experience especially working in challenging and emerging markets.”

So what’s next?

First things first. There won’t be any dramatic changes and Cobone will continue working with their current executive team and the existing brands. But - users can expect some exciting changes to the website.

Kenny and Godfrey explain: “Our sole focus will be to do what we do the best; daily deals and travel. We’ll also be

78

aiming at the evolution and development of an improved platform for our users; especially now with the significant inputs we have from Tiger Global Management.”

“We have become the leader in daily deals in the region. We are very dominant in the market and with this investment we hope to become leaders in other areas as well. We have enjoyed a 30% growth in three months and want to really see this continue,” says Paul on his outlook for the future.

Words of wisdom for SMEs With the famous buyout of Maktoob by Internet giant Yahoo in 2009 and Zawya.com

by Thomson Reuters, it wouldn’t be wrong to say that we’re seeing something of a trend developing. Kenny and Godfrey comment: “This is a very exciting trend and it’s a signal of what’s going to come. It shows that a large amount has been invested in the region and it’s brought attention to the UAE and the Middle East as an emerging market.”

With bright prospects for e-commerce in the region, they encourage SMEs to capitalise on this market gap. “There are a vast number of opportunities particularly in e-commerce and this region has a lot of budding talent. So you have to just get up and make the best of it.”

For businesses looking to partner with an investor, they advise: “Never put short term goals in front of longer term gains.

In this part of the region, you often see people trying to make a quick dollar now versus a USD100 in the future. If you are looking for a potential partner, it is important to ensure that they are aligned with your vision for the future.”

A message for the users For avid Cobone users wondering what to expect in the near future, the duo promise that the site will continue providing value deals and even hopes to exceed expectations by offering new innovative deals with higher values.

Crediting the success of Cobone to their loyal customer base, Godfrey says, “We have received the support of around two million people in the past two and a half years; we have hundreds of thousands of customers. We would really be nothing without the loyalty of our customers. We are grateful to have received such incredible support. We want to maintain this relationship with our customers as well as with our vast merchant base. Our plan is to further develop and provide even more value to our customers.”

ADCB ENTERPRISE CREDIT As your business grows, you need to keep pace with the increasing financial demands involved in making it a success.

ADCB Enterprise Credit is a flexible business banking product created to take care of your working capital and short-term funding needs.

Key features: • Working capital facilities available to SMEs having annual sales turnover up to AED 150 million • Credit facility up to AED 30 million • Easy documentation and quick approval • Flexible collateral requirements, with residential/commercial properties, SBLC, cash/cash equivalent accepted as collateral • Shari’ah compliant products also available For more information on ADCB Enterprise Credit, please SMS ECREDIT to 2626 or call 800 763 800

Terms and Conditions apply. Credit at sole discretion of the Bank.