SME ADVISOR issue 114

Presenting partner

strategic SME partner

ISSUE 114

No accident The role of business strategy

Leader BY

Design Meet d3’s MD, Lindsay Miller

Spice of life

Mansoor Al bastaki’s entrepreneurial vision

Silver screen The power of video marketing

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Khalifa Fund for Enterprise Development is a government entity that spearheads the support and development of SMEs in the UAE. His role is integral to the strategic planning and management of the organisation in alignment with the Executive Council’s objectives.

EDITORIAL COMMITTEE

His Excellency Abdullah Saeed Al Darmaki CEO, Khalifa Fund for Enterprise Development

SME Advisor is delighted to announce that during 2015 we will be working with some of the leading names in the SME space - key figures who have kindly agreed to take part in our prestigious Editorial Committee. This panel will play a vital role in channeling the feature content of our magazine and ensuring that we are more topical than ever - analyzing and discussing the ‘real world’ issues of tangible value to our readership and bringing industry-leading expertise across the publication and its raft of prestigious related events. We are delighted to introduce the following SME personalities:

Policy makers

Professor Val Lindsay MSc (Otago), MBA (Victoria), PhD (Warwick) As a Professor in Strategy and International Business, and Dean of the Faculty of Business at the University of Wollongong in Dubai (UOWD), she has a keen interest in teaching and research in the areas of international strategy, exporting, services internationalization, entrepreneurship, small and medium-sized enterprises, networks and clusters, and economic development.

Thought leaders At the helm of the BPG Group since 1991, he is responsible for consolidating the Group’s interests across advertising, public advocacy, public relations, design, activation, media asset management and digital verticals, in the Middle East and North Africa region.

Entrepreneurs Avi Bhojani CEO, BPG GROUP

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sme advisor ISSUE 114

He is also the Director of the Dubai Chamber initiative, Tejar Dubai. He is a proven UAE leader and business entrepreneur, with the ability to rapidly mobilize teams to achieve organisational change and integration.

With his unique background as an educator, a business strategist, and a researcher, Dr. Abonamah has conducted many strategy and organisational transformation workshops for various SMEs in the Gulf region and has been invited to speak at many national and international conferences, and panel discussions. He has over fifty publications in international journals and conferences and a US patent in reliable computer systems.

Essa Al Zaabi Senior Vice President Support Services, Dubai Chamber of Commerce & Industry

Abdullah Abonamah PROFESSOR OF MANAGEMENT SCIENCES AND CEO, UAE ACADEMY

He is a Board Member of the Advisory Board of Deutsche Auskunftei Service GmbH, Chairman of Business Advisory Council of EFMA, member of ECGI (European Corporate Governance Institute) and Member of the Advisory Board of BAA, the Alumni Association of Bocconi University and SDABocconi.

Roberto Mancone MD, GLOBAL HEAD BUSINESS PRODUCTS, LENDING, DEPOSIT AND PAYMENTS, DEUTSCHE BANK

Paul Kenny PARTNER, EMERGE VENTURES

Laura has been named one of the Best Keynote Speakers by Meetings and Conventions Magazine and is a member of the National Speakers Association. She serves on the boards of the American Heart Association, Clean the World Foundation, Common Threads and Event Solutions Magazine.

Laura Schwartz PROFESSIONAL SPEAKER, AUTHOR AND FORMERLY WHITE HOUSE DIRECTOR OF EVENTS

Paul is one of the most important figures in the Internet space in the MENA region and is an active investor, mentor and advisor to numerous companies around the world. He has made numerous investments into Internet and Technology companies worldwide and sits as an advisor and board member to several companies.

Yogesh Mehta Managing Director, Petrochem Middle East Mohan Valrani Senior Vice Chairman & Managing Director, Al Shirawi Group of Companies Apart, from his business-related ventures, he is also deeply involved in social activities. He is the founder - Chairman of the India Club and on the Board of Trustees of The Indian High School and has been as instrumental in contributing to the success of these institutions.

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Driven by passion and a need to succeed, he established Petrochem Middle East in 1995 with friend and business partner David Lubbock.

Petrochem Middle East has since grown from strength-to-strength to become one of the largest independent petrochemical distributors in the Middle East. A self-made billionaire, his greatest attributes are mentoring and leading by example.

Sultan Sobhi Batterjee owner and CEO, IHCC He is a member of several social and economic associations including the Young Arab Leaders Society in Dubai, the young entrepreneurs committee Jeddah Chamber of Commerce and he is also a Board Member of the (EO) Entrepreneurs’ Organisation in the USA.

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FROM THE EDITOR MANAGEMENT Dominic De Sousa Chairman Nadeem Hood Group CEO Georgina O’Hara COO - Business and Consumer EDITORIAL Group Director of Editorial Paul Godfrey paul.godfrey@cpimediagroup.com +971 4 440 9105 Editor Rushika Bhatia rushika.bhatia@cpimediagroup.com +971 4 440 9115 ADVERTISING Business Development Executive Adam Barrie Lees adam.lees@cpimediagroup.com +971 4 440 9119 Business Development Executive Mohamed Kerrouchi mohamed.kerrouchi@cpimediagroup.com +971 4 440 9162 Account Executive Freshia Mistry freshia.mistry@cpimediagroup.com +971 4 440 9161

Helping SMEs be first past the post It’s really no accident that within a few days of online registration opening for Stars of Business Middle East 2015 (going live on August 6th), we’re preparing to launch a new concept in SME training, the SME Academy. This will provide a series of training engagements along with online research data and reports, all aiming to boost practical skills and help SMEs maximize their potential in today’s highly competitive markets. While many training programmes in the region specialise in entrepreneurship skills and the like, the SME Academy is firmly grounded in the gritty, day-to-day skillsets that simply help you manage your business better. These are exactly the kind of capabilities that help distinguish the performance of the SMEs we see emerge triumphant in the Stars of Business Awards year on year. The course options cover areas like ‘Being Bankable’ - helping you present yourself to financial providers in the best possible light (!) - and the basics of solid accounting procedures, underpinning the real commercial success of your SME. Hosted by NBAD, the SME Academy also enables SMEs to engage with world-class names like Moody’s Analytics, Hawkamah, ACCA and PwC, giving access to a broad range of expertise and it’s all completely free! We’ll be announcing the official launch of the SME Academy via an e-blast to all our valued readers very shortly. Perhaps if you’re not entering Stars of Business this year, the training opportunities that will now be available can make all the difference to your business in the coming twelve months. It’s worth bearing in mind that the vast majority of winners in the Stars of Business Awards reach their position of eminence and achievement not because of ‘rocket science’ or by doing amazing, remarkable things, but by doing the basics exceptionally well and creating an impact on their customers and their sector because they ‘go the extra mile’. I wish that your business is soon honoured as one of the Champions.

To enter the Stars of Business Awards - www.starsofbusinessawards.com/ Enjoy this issue of SME Advisor.

Event Sponsorship Manager Gill Fairclough gill.fairclough@ cpimediagroup.com +971 4 440 9120 DESIGN Head of Design Glenn Roxas

Paul Godfrey Senior Editor

Senior Graphic Designer Froilan Cosgafa IV

Rushika Bhatia Editor

Production Manager James Tharian Data Manager Rajeesh Melath

Printed by Al Ghurair Printing & Publishing LLC

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

Head Office PO Box 13700, Dubai, UAE Tel: +971 (0) 4 440 9100 Fax: +971 (0) 4 447 2409 © Copyright 2015 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.

PRESENTING PARTNER

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

STRATEGIC SME PARTNER

OFFICIAL GOVERNMENT PARTNER

Contents

Organisations are using mobile technology to increase the effectiveness of the sales function; helping their employees be organised, consistent and engaging in every meeting.

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p18

Businesses have realised that through a better understanding of the consumers’ social, cognitive and emotional factors leading to a purchase they can actually increase sales.

ON THE FRONT COVER

p74

06 Editorial Committee SME personalities bringing industry-leading expertise across the publication and its raft of prestigious events.

09 Editor’s Note Paul Godfrey on the unveiling of this year’s prestigious Stars of Business Awards ME 12 Data and decision making Our infographic section showcasing key trends shaping the SME marketplace.

Ground level 14 Finger on the pulse A snapshot of today’s regional economy and how it’s shaping business growth.

18 Mobile technology: The new force in sales departments.

Improve your bottom line with these top tips.

22 A question of strategy.

What are the key steps to follow?

sme advisor ISSUE 114

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56

60

26 From unnoticed to unforgettable – The role of event marketing.

Fundamental strategies to help you deliver a stellar event.

Business Banking 30 Can you take the risk?

The imperatives of financial risk management.

Digitally Disruptive 34 Supercharge your connectivity for Q3.

We present a new, cost effective solution from Etisalat.

Movers & Shakers 38 Dubai Design District: The region’s contemporary creative hub.

An exclusive interview with its MD Lindsay Miller.

44 The spice of success.

We meet Mastihashop’s passionate owner Mansoor Al Bastaki.

48 Digital trailblazers – Sharad and Rohit Bachani.

An excerpt from our chat with the dynamic duo.

52 Strategies for success.

Shatha Maskiry, MD, Protiviti Oman, offers sound advice…

Legal 56 New Dubai Fundraising Law. Experts from Clyde & Co. provide critical insights.

Technology 60 How to integrate video into your business?

Top tips to get you ahead of the curve.

64 Getting ahead - Data without borders, storage without worries.

Innovation 68 Innovation - The catalyst to growth.

Strategy 74 Nudge your exports.

Dr. Ashraf Mahate, Head of Export Market Intelligence, Dubai Exports, sets the scene…

Tech Trends 78 Share your business story with the help of these top video editing apps.

Data and Decision making

Better safe than sorry

Trends and analysis on cyber security Factors that will drive positive change

40%

41%

47%

Better talent and skilled staff

Access to advanced technologies

Increase in funding

TOP TRENDS The global cyber security industry is estimated to be worth USD155.74 billion in 2019 Every second, there are 5 new cyber threats across the globe Cybercrime is reported as the second most common form of economic crime in the Middle East The region’s cyber security market is estimated to grow by 84 per cent from USD5.17 billion in 2014 to USD9.56 billion in 2019

Improving cyber security: Poor hiring and retention of expert talent

Lack of funding

45%

34%

The cost of cybercrime in the Middle East is reported to be in excess of US$1billion.

Sources: TechNavio, Gartner, GE, Cisco, HP’s Internet of Things Research Study, Ironpaper.com, Verizon’s State of the Market – The Internet of Things 2015, Best Computer Science Degrees and The Internet of Things: Mapping the value beyond the hype by McKinsey Global Institute.

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Data and Decision making

What business leaders are saying?

45%

Over 50 per cent of business leaders in the MENA region identify cyber security as a strategic priority

admit the lack of ability to measure, assess and mitigate cyber security risk

65%

of directors would like to spend more time on IT risks including cyber security

75%

28%

lack the maturity to address cyber security risks

believe their organisation is prepared to deal with cyber security risks associated with the Internet of Things

64%

47%

of leaders in MENA believe their organisation’s cyber security will improve in the next 3 years

65% of MENA experts believe that advanced cyber security skills are needed to effectively manage risks from complex and sophisticated attacks

major challenges for businesses Lack of suitable technological infrastructure

Lack of C-level support

33%

29%

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believe that their organisation is taking appropriate steps to comply with leading cyber security standards.

TOP CYBER SECURITY THREATS

41%

Cloud data leakage

23%

Insider threats

38%

Mobile malware

37%

SQL injection

13%

BYOD data theft

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GROUND LEVEL

Finger on the pulse today’s global economy and how it’s shaping your business In today’s challenging business environment, change is the only constant, and if your organisation isn’t ready to adapt to evolving market forces, it risks significant setback. But, how does an SME owner analyse macro-level developments and their trickledown effect on the business? How do current economic trends impact the growth of your business?

SME Advisor provides a detailed overview…

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GROUND LEVEL

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GROUND LEVEL

General economic outlook While the UAE’s overall economic outlook looks positive, there are three key trends influencing the growth of businesses. But before we explore those in detail, let’s take a look at this excerpt from an online report by The Economist which explains: “The economy is forecast to grow at an annual average rate of 3.6 per cent a year in 2015-19, driven by gains in both the oil and non-oil sectors. Growth will slow in 2020-30, to an average of three per cent a year, as expansion in the labour force weakens. The rate of GDP growth will remain dependent on oil production, but the vast stock of accumulated overseas investments will provide a cushion against oil price volatility.

Investment in technology and education and some further improvements to the business and institutional environment will help to boost productivity. These productivity gains will help to sustain the growth rate even as the contribution from the size of the labour force tails off. Overall, in 2015 50 we project annual average growth of 2.5 per cent.”

Top three trends driving change

1

Impact of oil prices and the diversification agenda

With the historic dependence on commodity exports, the new realities reflect how vital it is to foster economies away from total dependence on commodities. The UAE, for example, has always been quick to realise that focusing on diversifying economies will help to ensure sustainable economic growth and stability. IMF states that in spite of the lower oil prices growth will remain steady in oil-exporting countries at a rate of 2.4 per 16

Oil production is rising modestly in high income oil exporting countries Millions barrels per day 12 10

2014

2015Q1

8 6 4 2 0 Yemen, Rep

Oman

Libya

Qatar

Kuwait

Iraq

Iran, Islamic Rep

UAE

Saudi Arabia

Source: International Energy Agency.

cent. Overall, lower oil prices are expected have a multidirectional effect – while they will lead to contraction in the oil-related sector, they will have a positive boost in retail, tourism and the transportation sectors.

Business opportunity In line with the region’s increased focus on a diversification agenda, tourism has emerged as a fortuitous sector with great investments being made to this end. Another sector that has continued its strong performance is the manufacturing sector, which is growing despite of economic challenges (more on this in the following section). SMEs should opt for gradual, organic growth that is more manageable and involves less risk, adapt rigorous cost management strategies with a disciplined drive for operational efficiencies which will help boost profitability.

2

Growth across the manufacturing sector

Heavily supported by the region’s diversification agenda, there is a push to increase the contribution of the manufacturing sector towards the overall GDP. Manufacturing currently accounts for 11 per cent of the UAE’s total GDP. A recent report by DED, which illustrated a sector-wise comparison across the country, showed manufacturing as being the most optimistic sector, with 57 per cent anticipating a rise in sales volume and 25 per cent expecting further stability. Only 18 per cent anticipated a decline due to slowing market conditions during the third quarter.

Business opportunity SMEs operating within the manufacturing sector will benefit most from investing towards innovative technologies and automation. These processes help reduce costs and increase production efficiencies. Key sub sectors that are doing particularly well and present significant growth opportunities are F&B, metals and plastic manufacturing. www.smeadvisor.com

GROUND LEVEL

3

UAE manufacturing sector Gross operating surplus (in current prices) 100,000

40.0

90,000

mln AED

80,000 70,000

20.0

60,000

10.0

50,000

0.0

40,000 30,000

-10.0

20,000

-20.0

10,000 0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Gross operating surplus (mln AED)

2012

Gross operating surplus (y-o-y% change)

Source: Dubai Chamber of Commerce and Industry

UAE: Human Development Index value (2010-2013, points) 0.828 0.826 0.824 0.822 0.82

0.816 0.814 0.812 2010

2011

2012

2013

Human Development Indices (2012-2013, index value, years, 2005PPP $thousand) Index

Measure

2012

2013

HDI Index

Index value

0.825

0,827

Life xpectancy at birth (years)

years

76.7

76.8

Expectancy years of schooling

years

12

13.3

Mean years of schooling

years

8.9

9.1

GNI per capita

2005 PPP $thousand

42.71

56.06

Source: Dubai Chamber, based on UN Nations data

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The focus on education and skills development has been escalating within the country – and the wider region – as is reflected in Dubai’s 2021 Plan and Abu Dhabi’s 2030 Economic Vision.

An insight report by A.T. Kearney says, “Greater investment should be made in establishing strong governmentrelated education systems and creating opportunities for continued learning for public servants. The UAE, for example, invested in this area in 2005 when it established the Dubai School of Government to improve the quality of public administration and the effectiveness of policy making. More work can be done to increase public servants’ technical understanding of industry-specific needs. Another option is to establish a mechanism for continuous collaboration with the private sector to develop and test policies and service-delivery models before releasing them. This is especially important now that GCC countries are embarking on a journey of industrial diversification.”

Business opportunity

0.818

0.81

-30.0

y-o-y (% change)

30.0

Increased focus on skills development

In a business context, skills development and training is fundamental because the more trained your staff, the better their service will be to your customers.

Therefore, human development is a long-term investment opportunity for your business. Continuous employeedriven learning and innovation will accelerate business growth and yield positive results.

For an online version, please visit: http://www.smeadvisor.com/news/fingeron-the-pulse

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GROUND LEVEL

Mobile technology: the new force in sales departments

In the fiercely competitive world of sales, first impressions are everything and every meeting matters. If you don’t leave a mark on your client within the first 30 seconds, chances are you won’t get the sale. To increase the probability of closing deals, employers across the globe are turning to mobile technology, which helps them professionalise their salesforce, improve client engagement and ultimately win business. In the following feature, we assess the advantages and present top tips‌

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GROUND LEVEL

Any profitable organisation is looking for ways to optimise processes, reduce time spent on administrative tasks and focus its resources on building client relationships. Mobile technology is a fantastic medium helping businesses achieve these goals. Latest market data shows that a large number of companies around the world are investing in sophisticated mobile technology – not just for internal operations, but for customer facing functions too.

One area that has yielded significant results is sales – Aberdeen research revealed that “23 per cent more firms meet team sales quotas when employing a sales mobility strategy”.

Organisations are using mobile technology to increase the effectiveness of the sales function; helping their employees be organised, consistent and engaging in every meeting. More importantly, they are using such technology to create a seamless link between the sales rep onsite and the business home base. For example, a salesperson can simply access latest prices on a mobile device rather than having to wait to go back to the office and share a revised quotation to the client.

In fact, businesses using mobile technology are enjoying a multitude of benefits. Let’s take a look at some of the advantages that mobile technology offers: • Provides real-time information How many times do you find that your salesperson has to scour internal sites, PPTs, Excel sheets and old e-mails to get valuable information?

Using a mobile device, you can easily assemble and catalogue data into an organised manner. Mobile forms are another popular way of collecting and organising information; they can be used to update purchase orders, alter pricing, record inventory and close sales. An article on www. marketingprofs.com explains: “Making pertinent information such as product

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GROUND LEVEL

Organisations are using mobile technology to increase the effectiveness of the sales function; helping their employees be organised, consistent and engaging in every meeting.

details, prices, inventory, and Web demos available remotely enables the salespeople to easily access the most accurate and timely information when they need it most. The more quickly salespeople can get to information crucial to move their prospects through each stage of the cycle, the more they will stand out from the competition and ultimately make a sale.”

• Manages a customer database Use an advanced CRM system to manage customer information and update the status of prospective leads.

For instance, as soon as a sales member has finished a meeting, they will need to add in all crucial details into the CRM database. This allows for proper client follow-up and a streamlined customer contact systems across the sales floor.

• Facilitates account management Most businesses have a VIP segment of customers who are essentially repeat or loyal clients and account for a large portion of the revenue of the business.

These accounts are usually handled by ‘account managers’, who give them individual attention. Mobile devices can help automate the interaction of account managers with these elite clients ensuring that all their needs are fully catered to.

Quick summary Mobile technology is helping businesses optimise their sales function by – • • • • •

Professionalising their salesforce Increasing sales staff productivity Improving client engagement Reducing follow-up time Giving instantaneous access to documents on the company server • Checking inventory in real time • Closing deals on-site

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• Tracks and evaluates sales performance With advanced mobile software available today, sales staff can sign in when they start work on their mobile devices and keep a time log of all their meetings during the day. In addition, they can update the status of every meeting online. So, managers are fully up to date in terms of the time spent on a meeting, the primary discussion points and the outcome. That’s not all. Managers can also track what information is accessed the most by sales staff when interacting with clients, and use this to improve their proposals in the future. In fact, many businesses take advantage of a customised dashboard feature on devices which provides an overview of the progress of meetings across the sales floor including

number of meetings attended, number of calls made, number of deals closed, number of leads collected, and so on.

• Improves sales productivity The lesser the amount of time spent on collecting and assembling information means more time spent on selling. It’s as simple as that. Sales staff no longer have an excuse to spend huge chunks of time in the office doing paperwork or sending out e-mails. Experts suggest that the implementation of mobile technology essentially gives up to one extra selling day every month!

Seal the deal: best practices in mobile sales It is important to understand that simply providing latest gadgets to your sales team isn’t enough to make a difference or give your business a competitive edge. In order to fully maximise the opportunities that mobile technology offers, sales reps need to be trained and informed about key best practices before they begin field work.

The following is a list of important guidelines to bear in mind when briefing your salesforce –

1

Create customised content

No matter what the medium of presentation is, content is still king. Create a content library with a variety of templates so that it is easy to plug-in relevant information and prepare a raft of proposals. One of the biggest mistakes sales executives make is that they use a standard version of their presentation for a raft of diversified clients. When it comes to sales presentations, avoid a ‘one-size-fits-all’ approach and create a customised template based on the client’s individual needs.

In case of back-to-back meetings, ensure that your salesperson has prepared multiple versions of the presentations beforehand.

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GROUND LEVEL

Number crunch 57% of customers believe that salespeople are poorly prepared

Sales reps spend only

23% of their time selling

40% of salespeople are currently using tablets

70%

of organisations using tablets for sales are reporting positive ROI

73%

with mobile enterprise applications reported a gain in productivity

90%

of organisations are planning further investments in tablet sales solutions

Sources: Pace Research Group, IDC, Sales Management Association, IDG Research

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2

Produce consistent messaging

Although sales staff are strongly recommended to use different proposals for different clients, the underlying message you are sharing with the customer should be the same. This means that your brand’s value should be reflected consistently across all materials.

Have one-on-one meetings with sales members to ensure that they fully comprehend the organisation’s mission and strategic principles.

Another good practice is to break down sales messages into different modules so that the client has time to digest all the information. So, instead of creating a PowerPoint presentation with 10 slides, try to offer one slide with text and one slide with animated infographics to engage the customer.

3

Stay prepared

Don’t rely on Wi-Fi connection at your client’s office or a public meeting place; make sure that your sales members have the sales presentation saved on their device, which of course should be fully charged. They should refrain from using multiple devices during one meeting or relying heavily on mobile apps to do the work for them – this can cause confusion and waste time. More importantly, this helps keeps the prospective client engaged throughout the meeting.

4

accessible through the device isn’t sufficient, it needs to be organised in a coherent way and be client-friendly.

5

Follow-up instantly

Sales members shouldn’t wait to get back to the office or until the next day to follow-up with a prospect. They should send a recap of the meeting along with a soft copy of the presentation and other discussion points straightaway.

Ultimately, integrating mobile technology into your sales department will not only boost your bottom line but will also help you build a sales force that is more prepared, confident and organised.

Moreover, combining the ease and timeliness of mobile devices with your company’s communication network will give you a robust sales ecosystem, within which your business can prosper.

Good luck!

Be organised

Encourage your staff to research the client beforehand and have an agenda in place for the meeting. Knowing what the client wants and catering to those needs within the presentation is a great way to close a deal. Remember that simply having the information

For an online version, please visit: http://www.smeadvisor.com/news/ mobile-technology

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GROUND LEVEL

A QUESTION OF STRATEGY Any business can get from A to B, but how you choose to do that and the success (or not) that you encounter along the way is the measure of your business strategy. Some businesses muddle along without a strategic plan, while others over-strategise and forget to act: but the reality is that if you ‘fail to plan, you plan to fail’. Senior Editor Paul Godfrey examines the world of business strategy…

“Strategy equals timing; and the only time that matters is now. If not now – when?”

– Mikhail Gorbachev

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Everyone who has ever started a business is by definition a strategist he or she would never have managed the start-up if there wasn’t a plan of some kind for how the business would grow, and a formula for delivering the first funding and prospect targeting. That doesn’t mean, however, that the Business Plan is by itself a strategic document: it isn’t. It’s simply a roadmap and a statement about future billings. The strategy is the layer of commentary that may (or may not) accompany the Business Plan, eg, “we do this at this point because our biggest competitor will be too busy looking at its export markets and we can have the home market to ourselves…” This is the rationale that really underlays and supports the business and turns it from an ad hoc series of actions into

a considered and profitable enterprise.

The real question is, what are the fundamentals of strategy planning and how do we identify the key strategic goals - the ‘glue’ - that holds them together?

Fast or slow, a leader or one of the pack?

Business strategy is about making choices. It’s about deciding whether you want your business to embody leadingedge dynamism, or simply make its way quietly along. It’s about whether you want, for example, an online shopping model in an increasingly crowded market, or choose to realign the business into vibrant niche verticals (in the way that ebay has done with paypal, re-igniting market opportunity by recognizing that the old model isn’t rich enough with potential any more).

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GROUND LEVEL

Top tip! role of strategy, it’s appropriate that the bulk of strategy issues are conceived and executed by the most senior personnel in the business, usually the CEO or founder in conjunction with the CFO. Notice here that when implementing strategy of whatever kind, the company is drawing information from the sector that it is operating in, including the behaviour of its competitors and the buying power of customers. It is then putting in place measures that either mitigate or accelerate the impact of those phenomena. There will also be broader factors, too, such as the condition of the economy and the impact it has on pricing, export markets, currency value and the like.

This analysis of external factors is generally regarded as one of the two key pillars of strategy creation, and is often known as strategy formulation.

Effective formulation will then be followed by implementation, the second - and critical - part of the strategy equation.

There’s nothing wrong with a business that wants to do things the safe, conservative way and works according to a detailed strategy delivering just that. Similarly, nothing is more exciting than planning a business model that will leverage growth rapidly through astute borrowing. The point is that both approaches require commitment to clear strategic goals. Note as well that the strategy determines not only success or failure, but personality - and that can be the vital Factor X that determines brand positioning and makes customers beat a path to your door.

You’ll have gathered already that strategy tends to relate to the most important aspects in the business’s lifespan and development, assessing its major goals and initiatives and identifying precisely how to reach or deliver them. Due to this ‘top-down’

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Successful strategy formulation the steps to follow All too frequently, business strategy planning is based on hearsay and assumed knowledge - and assumptions about market behaviour and the best response to it can be dangerous things.

It pays to follow a structured process which will involve: 1. A series of questions, looking at precise aspects of the business environment you are working in.

You will need to research any of the answers you don’t know. This list should tackle factors such as whether your products are competitive in terms of price and quality; whether you are in the right location; whether you are serving the right market; whether you have the right people to deliver what’s required; whether your growth is stronger than that of your competitors; and whether you have a sharp, crystal-clear image of where you want the business to be going. These questions should begin by helping you assess the big, overall picture and then zoom in to tackle

specifics about market, competitors and the structure of your business.

2. Discussion with senior managers and team leaders as to the conclusions that the above questions lead to, eg, should the business expand, start a recruitment drive, update manufacturing processes, invest in new plant and equipment, or specialize in a certain market and product line?

3. Assess the financial and operational requirements that the questions provoke, in order to decide whether or not it’s feasible to follow their answers. Remember: there’s no point putting in place an expensive raft of risk management controls if they cost more than the sum total of the risk; no point in committing more heavily online if your customers want personal contact from field sales staff.

A typical series of helpful questions will be • By and large, how favourable is the remote external environment?

Assess the political, economic, social, technological, legal and environmental factors. This may seem very generalist, but it’s a great way to determine if you’re in the right place at the right time.

• Mirror this question by looking at the internal environment. Assess the strengths and weaknesses of the organisation’s resources and capabilities - personnel, IT, distribution, service follow-up etc.

• What is the overall shape of your industry environment? Look at the competitive behaviour of other organisations, the bargaining power of customers, and the rising cost of your current batch of suppliers. Also consider if there are threats from new businesses coming into your sector, who might be doing something better or cheaper than you.

• Who - exactly - are the business’ target customers? A critical question that all too few businesses know

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GROUND LEVEL

Each strategic initiative should be given a clear delivery timing, which must also be realistic and practical.

the proper answer to. When you look at who your customers actually are, they may be very different from the profile you once imagined you were servicing. This may be good financially for the time being, but is it where you want to be?

Another question is where are your customers? Are you well-placed to serve them, or are you being forced to play to your weaknesses, not strengths? Consider the geographic scope of the business - is the reach wide enough, or too wide to focus on what is most productive?

• Very importantly, what differentiates the company from its competitors in the eyes of customers, investors and stakeholders? What is its USP - the ‘Factor X’ that makes it stand out?

• What are the factors that have historically led to the strongest periods of maximum growth? Once these are identified, repeat them!

• Allied to the question above, how can the business generate more revenue for its shareholders and investors?

Identifying the timelines - and the people who will deliver Perhaps the single most important factor in the strategy mix is the answer to the question ‘when’? Your business can have the most fabulous plans but unless they are backed by a clear timeline, they are useless.

Each strategic initiative should be given a clear delivery timing, which must also be realistic and practical.

The expectations on delivery should identify the key personnel responsible and break down each initiative into manageable sections individually linked to a delivery calendar.

The staff briefings on strategy timings and delivery should always he delivered by the CEO - with the impetus seen as coming ‘from the top’ The strategic plans should be presented in the format of – • One comprehensive overview strategy document, released only to members of the Board and the senior executive team. This shouid be available as both a hard copy document and online.

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• More specialist documents covering specific strategy issues in strong detail, submitted only to the teams delivering these particular components.

• Review exercises that assess the effectiveness of implementation and ask the managers responsible to enter their findings, successes and challenges.

• Ensure that the effective enactment of strategy objectives is included in the performance criteria and KPIs of the staff tasked with delivering the initiatives. This ensures that they are not seen as ephemeral goals somehow separate from the core business.

Do you need someone else to deliver the strategy?

For most SMEs, the services of a fullblown strategy consultancy can seem excessively expensive, and the guidance above is aimed at companies who would sooner undertake the identification and delivery of strategic objectives themselves. Notwithstanding, many companies choose a 50-50 route, whereby they follow the ‘key questions’ approach to identify what needs to be done, but then utilise the services of a specialist provider to help deliver it.

While this can ensure that the job gets done and staff are fully tutored on the delivery process by an expert team, this will only be really effective if there is strong ‘cultural’ alignment between the provider and the business.

Remember as well that the only test of strategy is its effectiveness and the ability (or not) to contribute to revenue and the bottom line. Far from being ‘carved in stone’, it needs to be adaptable and faithful to your needs and if this is indeed the case, there’s no more powerful way to supercharge your business.

For an online version, please visit: http://www.smeadvisor.com/news/aquestion-of-strategy

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GROUND LEVEL

From unnoticed to unforgettable the role of event marketing

Whatever the theme of the event, its success depends on being effectively promoted - an event will fail if it cannot attract the right audience and media coverage, and building recognition and awareness are far from easy tasks. Even the strength of the speaker list will depend on whether the event can effectively promote and publicise those who take part. Senior Editor Paul Godfrey - who manages major events such as SME Beyond Borders - knows the challenges and opportunities of event marketing all too well‌

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GROUND LEVEL

One of the curious features of an event is that it exists only in the eyes of the beholder: it has absolutely no value other than the impact it makes on the audience.

If an event is not recorded, then, the moment it is finished, it is gone forever - however glamorous the occasion, it only has a lifespan of a few hours. The focus is entirely on what happens in that venue, in that hall or studio, in the very limited timeframe available. It’s a window of opportunity on which you have to build immense attention - the bottom line is, if people don’t know about it, they won’t be there.

Yet it’s not only about ensuring you get the right size of audience to the event - it’s about the right demographic mix within that audience, be it large or small.

Moreover, the promotional aspect is also important in terms of the people who will ‘star’ in the event. If the speakers don’t see the right level of promotion, the event won’t attract the calibre of speaker or presenter you would want. So the event risks falling flat anyway.

Five ‘golden’ tips you need to know There are five ‘golden’ factors in event marketing and promotion that are designed to proactively deal with the harsh risk factors of an event being unnoticed and poorly attended.

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Event ‘positioning’

Is the event linked to an important agenda within its sector - one that people will want to hear about and take notice of? It’s vital that your event is dealing with a topic that will attract interest and which is perceived as one of the ’hot’ debates in the industry. Is it a topic that is currently attracting media attention? Is it linked (however loosely) to a government theme or objective - which will magnify media attention?

Ideally, the event should be -

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GROUND LEVEL

• Riding on a debate that is preestablished in an allied magazine or website • Named after a phrase that is big and well-known from media coverage which has immediate resonance.

• The first to tackle this particular topic and so able to draw a keen, eager audience.

• Has a format commensurate with expectations, ie, a conference dedicated to SME finance can justify a hall booked for 500 delegates, whereas a debate about fire hazards in offices might require a smaller venue suitable for a more specialised audience • Held in an accessible and popular venue and at a convenient time.

Always use a venue that has the best glamour and facilities available within your budget range - you’ll attract people who also like this venue and want to be there. Make sure it’s accessible by your target audience - don’t have an event in Dubai Marina for a discussion about Sharjah free zones, for example.

Similarly, pick a time when people can get there and won’t be stuck in the traffic: an evening event is almost certainly going to have problems if you’ve scheduled a 6:30pm start.

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Your speaker line-up

Focus on getting the best event participants you possibly can - people who are the ‘movers and shakers’ in the industry and who your delegates would love to see and listen to. You will need to – • Ensure there is a balanced mix of speakers or panellists, equally split between subject experts, entrepreneurs, academics, government representatives and media/communications specialists.

• Appoint a dedicated member of staff to head-up your approach to speaker selection. You will typically need to approach each speaker via an e-mail (explaining the event and why

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you want him/her there); a follow-up phone call to ‘close the deal’ and confirm attendance; admin support calls to confirm format of presentation and when the AV team will need it by; further admin support to confirm arrival times, hotel booking and transport (if required).

• Set aside a realistic amount of time to secure your VIP speakers. For a smaller event, allow at least two months to secure speakers; for an event requiring ‘A’ list participants, you may require a nine-month lead time.

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‘Anchoring’ the event: giving people the information they need

How will people find out about the event? There are basically two ways.

Firstly, through sending out e-blasts to your database. Secondly, through creating a dedicated website - which is more likely to be a microsite with basic (but highly engaging) information. When creating the website, ensure that • It covers the basics like time, date and venue • There is a strong summary of content that genuinely gives a good idea of what the event will be about • There are powerful headlines that ‘sell’ the event and explain why it’s necessary to be there • There is a section with speaker profiles and photographs (you may not have all of these until close to the event, but always try to include a few, even at the earliest stage - especially if you’ve got a ‘yes’ and good information about your star speakers).

• It is attractively designed and as professional as possible. The key rule here is that it needs to be in keeping with the expectations of your audience.

• Most importantly of all, it allows delegates to register their attendance via an attached registration form.

This form should have enough fields to gather key information about your delegates - what they do, their mobile number, e-mail, job title, name, location and contact details of

company, what the company does, etc. Reviewing these registration details gives you the clues as to the demographic mix of your prospective audience. This registration form will also be accessed when the people on your database reply to their event e-blasts – so everything comes back to the website.

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So who will you invite to the event?

It is imperative to build a clean, valid and up-to-date database of names and contact details. This list will be comprised of customers, client contacts, key industry figures, networked businesses, award winners and industry suppliers.

You can of course buy lists to supplement your own accrued names, but if you do so, ensure quality and relevance of data in advance by giving very specific listbuilding criteria. In all likelihood, you will not often be approaching the entire list, but rather, accessing cross-referenced sections that are compatible with your event demographic. So it’s vital that as you build the database, you can slice through it and cross-reference anyone you like by job title, location and style of business. Remember, unless you are targeting the right people, your attendance will not only suffer, but you may also upset sponsors or advertisers by failing to bring the right people along.

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Publicising the event – and getting response

First things first. Even amongst confirmed delegates, about 60 per cent will not turn up on the day. So as a rule of thumb, you need to get twice as many confirmed, registered delegates as you actually need.

Approximately six weeks before the event, create a direct-marketing flyer online (generally referred to

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GROUND LEVEL

as an EDM) and send to selected sections of your database. You will be sending this in order to get delegate registrations. The EDM will contain a vibrant, descriptive summary of your event with an outline agenda (timeline) of the day. The copy length should be about 300 words - no more. To be visually appealing, it should also contain imagery relevant to the sector that the event is in. Critically, the flyer will contain a “register now” button that leads to a registration form linked to the event microsite. Keep a close watch on the number of registrations and then – • Send the EDM out twice a week for the next two weeks.

• Three weeks prior to the event, start sending it out every second day.

• With one week to go, send the EDM out every day.

• You can vary the approach and wording of the EDM either for different sections of the database,

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or to give a more varied approach to the same recipients. Monitor the response and effectiveness of each variation and then discard the less effective varieties.

• You don’t have to accept and confirm each and every registration. Some may not be within the demographic you want.

For those you do want, appoint a member of staff to start phoning and confirming their attendance a few days prior to the event.

Aim to have everyone ‘locked in’ and verbally confirmed (as well as registered) by mid-day the day prior to the event.

The role of media coverage While the above are the top five factors, other elements are important too. A good example is the role of media coverage: it is always advantageous to have members of

the related trade press covering an event - the consequent coverage and reviews in industry publications will boost your relationship with sponsors and participants. For some styles of event, the presence of journalists from the national press (and perhaps also TV and radio) will also be highly desirable. You can start fostering their attention from Day One – appoint a member of staff to make approaches and then back this up with special information updates and EDMs. If your budget permits, a radio campaign, or an interview with the event organiser on a prime-time show, can also boost awareness and commitment.

As you can see, event promotion involves co-ordinating and launching a number of key initiatives, each requiring a watchful eye and the need for labour-intensive execution. Yet however time-consuming they may seem, a highly successful event won’t just make them worthwhile - you’ll be planning the next round of activities armed with real-world expertise and the expectation of an even more successful occasion.

For an online version, please visit: http://www.smeadvisor.com/news/the-roleof-event-marketing

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BUSINESS BANKING

Can you take the risk?

The imperatives of financial risk management

There are many financial risks that your business can be prone to, from latepaid receivables to lack of cashflow, from lost investment opportunities to poorly-researched market expansion. The point is that these risks impact not only operational efficiency, but relations with stakeholders and investors, whose input is normally given on the condition of maintaining and protecting the status quo. The question is, how to put a sound strategy of financial risk management in place? Senior Editor Paul Godfrey investigates‌

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BUSINESS BANKING

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BUSINESS BANKING

Financial risk management deals specifically with the raft of financial exposures resulting from the business’ commercial and investment activities, not the physical condition of its property or the likely liabilities that this could feasibly provoke.

It’s important to clarify from the outset that financial risk management exists primarily not to hedge against any risk as such, or to put firewalls in place around operational challenges, but rather to protect the interests of the business’ stakeholders and investors.

While financial risk management can protect against the hazards of credit risk and market risk, its real economic value to the business is in developing and maintaining a vibrant and attractive commercial environment for investment and reward.

Part of this focus means that financial risk management should always ensure that the business will only entertain commercial transactions that increase stakeholder and shareholder value. It also ensures that part of the way a business can mitigate risk to shareholders is by handling those risks more cheaply than a pool of shareholders could hope to do by themselves.

Another factor to consider is that financial risk management is categorically different from the physical risk management of the business premises and environment.

So, for example, while a business might install lighting into its car park in order to protect fleet vehicles parked overnight, or replace the handrail on a staircase in order to protect staff and customers from accidents, this type of risk prevention is not financial risk management.

Financial risk management deals specifically with the raft of financial exposures resulting from the business’ commercial and investment activities, not the physical condition of its property or the likely liabilities that this could feasibly provoke.

Managing financial wastage – protecting Receivables One of the key areas of financial risk management is ensuring that money is not simply ‘given away’ through clients’ late payment of invoices.

SMEs are in a highly vulnerable position, since even a single financial default can disrupt the business’

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success - clouding the company’s outlook for the foreseeable future. Just to compound the scale of the problem, it’s usual that the largest or the second largest item on a company’s balance sheet is the outstanding receivables, representing 40 per cent or more of their current assets.

The best tool for financial risk management in this scenario is Trade Credit Insurance (TCI), a risk management tool frequently employed by businesses to protect their trade receivables from non-payment or delayed payment. TCI in effect shields both the cash flow and the profitability of an SME. While TCI is often known for protecting foreign trade (and in this capacity it’s often known as Export Credit Insurance), there is also a large segment of the market that uses TCI for safeguarding domestic accounts receivable as well.

TCI basically protects businesses against two broad categories of risks: 1) either a buyer does not pay, or 2) a buyer pays very late. A buyer may not be in a position to pay after the company has been declared bankrupt or insolvent, according to the prevalent bankruptcy laws of any country. Similarly, in many markets, a buyer may opt for a bankruptcy protection arrangement, which permits deferred payments for an extended period. Both instances are covered under a TCI policy.

In addition to protection against default, by insuring business receivables, TCI in turn provides the businesses with confidence to provide better terms to the buyer(s) and hence it facilitates a win-win situation for the TCI policy holder and its client(s). The seller is assured of payment and therefore no adverse interference with their cash flow is expected. The buyer(s) on the other hand, receives better, easier and longer payment terms. This also has a virtuous effect on cashflow, since without adequate protection provisions, late payments or non-payments pose a considerable threat to the future liquidity of an SME. When an SME insures its receivables against nonpayment or late payments, it is basically

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BUSINESS BANKING

ensuring its cashflows, since now it can sell on credit, discount its receivables and greatly benefit cash flows.

Minimising investment losses Most SMEs simply aren’t big enough or structured enough to have a corporate investment portfolio of the kind that a large or enterprise-level business will have. It’s more likely that what investments there are will either be an extension of the personal investments of the founder/CEO, or will be investments in property and plant.

Notwithstanding, if there are speculative market investments, it’s advisable to limit potential losses by following several basic investment models. These include • Top-down or bottom-up investment strategies ‘Top-down’ investing strategies involve choosing assets based on a key theme that is believed to be a valid response to prevailing market conditions. You might anticipate, for example, that the economy will grow sharply, so you’ll buy stocks across the board. Or you might just buy stocks in particular economic sectors, such as industrial and high technology, which tend to outperform when the economy is strong.

Meanwhile, ‘bottom-up’ managers choose stocks based on the strength of an individual company, regardless of what’s happening in the economy as a whole or the sector that the company is in. This requires detailed research on individual company strength, and you will normally need to have an investment specialist - or dedicated researcher - on board to go down this route.

• Technical analysis Technical analysis involves evaluating all the factors that affect an investment’s performance. It will mean looking at all of the company’s financial information, and if large sums are involved, it may also necessitate meeting with company executives, employees, suppliers, customers and competitors. In essence, technical analysis also involves researching and costing-in prior trading

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patterns, looking at the trends of an investment’s price. The advantage here is that you’re investing based on real information, not following the herd superficially.

• Dividend investing A dividend investment strategy follows stock with a strong record of earnings and dividends. Because of the stock market volatility of recent years, many SME investors like the idea of a fund that offers them a regular payout.

Moreover, even if the price goes down, you can still get income: this can be a good way of boosting cashflow and supercharging funds coming into the business. It’s as well, though, to beware of investments with extremely high yields. That could be a sign that companies are taking overt risk and may be headed for declines. Again, dividend investing tends to be bettersuited to the bigger business with the resources to undertake some detailed investment research.

Reducing the risks on the balance sheet When it comes to the balance sheet, the most important requirement of financial risk management is to protect capital.

It’s vital to monitor the strengths and weaknesses in your balance sheet and see where the ‘hotspots’ lie that can lead to capital shortfalls. This same process needs to be regularly implemented in order to – • Understand cashflow/liquidity levels. For an SME, cashflow is king.

Even modest shortfalls can result in staff redundancies and poor credit histories. What’s more, for an SME, cashflow is especially hard to maintain: it’s unlikely you will have high capital reserves to dip into, but conversely, have you invested in the excellent bookkeeping skills that will maintain through-put of cash payments?

• Evaluate surplus for investment in new business ventures. No business can stand still for long, but can you afford the cash sums necessary for fresh market and product investment?

• Review costs. Is money being wasted because you are in a ‘vanity’ location?

Do you have overly-expensive fleet costs? Are your payment cycles placing unnecessary demands on the business? Take all these factors in hand and don’t live with higher expenses than the business can reasonably tolerate.

Getting more capital It pays to plan ahead and assess what will be your most appropriate borrowing needs, and when. Well-planned borrowing can avoid ‘desperation’ borrowing later on, and ensure that you take the time to source advantageous rates and repayment terms. The earlier you can identify future needs, the earlier you can start creating a portfolio of potential funders. Remember, banks, financial institutions and investors are attracted to businesses that are calmly and rationally planning for the future and represent strong repayment potential. Good planning now can save financial wastage in the future.

Another factor to consider is raising finance to develop new market opportunities. Making a sound investment in market development can mean that you circumvent any likely problems from a depressed or exhausted home market - and this is good, proactive financial risk management.

Make a business plan based around: • Solid market intelligence and research • An appraisal of your key market competitors • An understanding of payment terms and licensing costs when operating in another market • A forecast assessing break-even and profitability timings In these respects, a successful venture into a new market can be powerful way of building income - and remember, when it comes to financial risk management, attack is the best means of defence.

For an online version, please visit: http://www.smeadvisor.com/news/ can-you-take-the-risk-2

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//DIGITALLY DISRUPTIVE

Supercharge your

Connectivity for Q3 A new, cost-effective SMB solution from Etisalat saves you precious time and money - and takes the hassle out of start-up and growth, Especially since there’s no upfront cost and you can benefit from flexible instalment plans ON latest devices for your office and employees.

Senior Editor Paul Godfrey looks at this important business-friendly innovation that empowers the way you shop for telecoms essentials...

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//DIGITALLY DISRUPTIVE

The new initiative covers the key essentials that you and your team will need to run your business.

If you’re starting a business from scratch, or simply looking to expand the scale of your operation, one of the most timeconsuming tasks is getting the right level of connectivity in place as and when you need it. Will you shop around a multitude of device suppliers in the high street?

Weighing up countless different offers and then arranging connectivity as you go? Or perhaps, overwhelmed by the logistics of all this, you’ll opt to move into a serviced office, where you’ll get your connectivity but pay a premium for services you might not have bargained

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for? It’s no accident that, according to Dubai SME, 68 per cent of SMB owners and directors in the UAE consider the infrastructure and IT set-up to be the biggest headache of business life, in addition to being heavy on the pockets.

Yet it doesn’t have to be like this.

Wouldn’t it be great - for example - if you could have your pick of the latest devices covering all your office needs, with simple, one-stop connectivity? More importantly still, what if you could have these devices bundled at no upfront cost? Plus, you’d have the opportunity to supplement

your set-up as and when you need with high-end devices available with easyinstalment options? That’s the new offer from Etisalat, in the shape of Business Quick Start, a key part of the well-known ‘Business in a Box’ initiative.

Not only does an arrangement of this kind give you great convenience and mean you can get your business up-andrunning from Day One, but it also means minimum capital investment - allowing SMB owners to conserve valuable funds and tailor outgoings according to cashflow and monthly budgets.

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//DIGITALLY DISRUPTIVE

Business Quick Start:

How it works

Depending on the package subscribed, customers can choose from a range of personal and office devices. For instance, customers with the 4MB or 15MB subscription plan are entitled to 1 device. Whereas, customers with the 30MB, 50MB, 75MB or 100MB subscription plan are entitled to 2 devices.

A range of 8 entrylevel devices

A selection of high end devices

Add on package for additional devices

Customers can then choose across 8 entry-level devices bundled at zero upfront costs

For high end devices, customers will need to pay the difference after Etisalat subsidy. The payment methods include – 0%, 25% or 50% upfront and remaining amount in 12 months instalments.

If businesses require more than 2 devices from the existing package, they can opt for up to a maximum of 10 additional devices, with a 24/36 months contract and payment instalments.

(e.g. smartphones, printers, projectors and routers)

(e.g. storage, SMART signage TV, high-end tablets and laptops)

Everything is geared in a way that makes sense for the SMB customer, so you can empower your business and enjoy higher returns and more convenience.

Ticking the box on the real essentials The new initiative covers the key essentials that you and your team will need to run your business: smartphones, tablets, laptops, printers, projectors, storage, SMART TV and routers. All from the world-class brands you’d expect.

Plus, there’s a choice of how you take advantage of the offer: you can deal with Etisalat Business Centres or via an expert SMB business sales partner - whatever is easier for your business. Choose either option and you’ll benefit from the very best service follow-up, from a dedicated SMB call centre, staffed by teams who understand your business priorities and preferred timescales. Everything is geared in a way that makes sense for the SMB customer, so you can empower your business and enjoy higher returns and more convenience.

Compatible with business strategy Today’s SMBs are continually faced with competitive challenges, including: • The need to share data across every device in the company • The need for pricing transparency and flexibility

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• Providing employees with the technological capabilities they need to excel • Seamlessly integrating connectivity, communication and collaboration solutions within their organisation • Accessing IT support to overcome technical glitches Business Quick Start is suitable if • You’re a start-up and you need a one-stop connectivity solution with no hassles and a single dedicated provider . You’re looking to effectively manage costs • You’re moving into a new office and need a comprehensive suite of devices and connectivity • You need to create a new team for a particular initiative or market, with a simultaneous launch • You need a new branch or division to go ‘live’ on a particular day As a leading telecoms provider in the Middle East and Africa, one of Etisalat’s key service commitments is enhancing the customer’s experience. This is exactly the kind of service offer that can smooth the way through all the challenges so often associated with getting properly connected, delivering 100 per cent performance to your business from Day One. For more information, please call Etisalat’s dedicated SMB Call Centre at 800 5 800 or visit http://www.etisalat.ae/ businessquickstart

For an online version, please visit: http://www.smeadvisor.com/news/ supercharge-your-connectivity-for-q3

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MOVERS & shakers

Dubai Design District:

the region’s contemporary creative hub Since its inception in 2013, Dubai Design District (d3) has welcomed international and local talent, offering them a vibrant ecosystem to help demonstrate their creativity, and showcase it on a global platform. Under the vision of Lindsay Miller, d3’s Managing Director, this community is now flourishing as it moves towards further growth and development. SME Advisor brings you exclusive insights…

Tell us about d3 and how it came about.

Dubai Design District, d3, was launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in June 2013. Its development forms part of a larger government vision to drive a sustainable, innovation-led economy in the Emirate.

We studied the design industry for years before launching this project and our research showed a clear industry need and a compelling commercial case for establishing a creative community like d3. The Emirate has already established itself as a global hub for retail and tourism, and d3 was created to provide a platform to ensure the design industry is able to reach its full creative potential, and to support the development of a home grown design industry in the Middle East.

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Dubai Design District is a dynamic community for the design industry in its broadest sense, encompassing segments such as fashion, interiors, architecture, arts and luxury design.

Established global brands will be able to reach the Middle East market via a presence at d3, and emerging talent from the Arab world will be given a far greater opportunity for their designs to reach an international audience. We are creating a place for the region’s designers and design enthusiasts to live, work and play, offering a mix of residential, commercial, retail and hospitality real estate.

How is d3’s long-term vision aligned with Dubai’s 2021 Plan? d3 is closely aligned with Dubai’s 2021 Plan, and will help to underpin Dubai’s wider ambitions, by providing a dedicated hub for the creative

community, helping to further diversify the Emirate’s economy.

The Dubai Plan 2021 aims to make Dubai a smart, sustainable and creative city, and we are at the forefront of Dubai Smart City, having been named the official greenfield site for the initiative last year.

Building “an inclusive and cohesive society” is one of the strategic developmental aims of Dubai’s vision for 2021. This type of cohesion can be fostered by providing environments and platforms that bring the community together. d3 offers opportunities for the design and fashion community to engage by inspiring and enabling collaborations and networking. For example, we have developed and participated in initiatives such as Dubai Design Week, Fashion Forward and Meet d3.

Innovation is a central theme of the Dubai Plan 2021 as well, and the government’s innovation strategy underpins nearly every aspect of the d3 concept. Not just in the strategy

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MOVERS & shakers

Lindsay Miller, d3’s Managing Director

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MOVERS & shakers

Emerging local designers and brands are at the heart of the region’s design industry with approximately 70 per cent of them coming from small and medium sized businesses.

of developing an entire design community from scratch, but also in its conceptual design, with a number of architectural elements that will be unique in Dubai, and also the region. d3 will also build on the Emirate’s strengths in tourism, which is expected to double the number of visitors to 20 million by 2020 and retail, which is estimated to grow to AED 151bn in the next two years.

What kind of opportunities does d3 offer to new and established designers? Are there any special benefits for start-ups and small businesses?

Nurturing young and emerging talent is a key priority for us, and d3 will be home to companies of all sizes, encouraging innovation and inspiring, enabling and engaging the creative community.

Emerging local designers and brands are at the heart of the region’s design industry with approximately 70 per cent of them coming from small and medium sized businesses. Over the year, we have witnessed a number of local and regional designers rising to the top such as Amato, Zayan, Natalie Trad, Rami Ali, Nadine Kanso, and Victor. This makes us very proud.

At d3, we hope to expose all our emerging talents to the entire industry value chain, and there will be opportunities to interact, share and engage with global players from the world of fashion, luxury and of course design.

Our parent company, TECOM Investments, has a strong track record of pioneering the growth of creative hubs that encourage entrepreneurship and local talent. Its communities have always offered facilities to help emerging businesses, freelancers and start-ups, and we intend to offer the same for

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emerging designers at d3 but tailored to their specific needs within the design industry. For example, suitable creative space and workshops with shared facilities and a 1 million sq. ft.

Creative Community where emerging talent can be showcased and inspired.

We have so many talented emerging designers growing in the region, but for every Elie Saab, Reem Acra or Azza Fahmy, there are other very gifted people who are struggling, and who do not have the resources or connections to reach their full potential. We have designed d3 to answer this call for support.

What would you describe as d3’s USP? Dubai Design District is for the full value chain of the design industry, and our core objective is to drive the growth of creative businesses and individuals through a deep understanding of their needs. This dedicated creative destination is what the community has been calling for and we have listened. We continue to listen as this development evolves.

Due to its location, d3 will act as a gateway between East and West, and where local and internationally recognised talent can be based right next to each other and benefit from being part of the same community – sharing ideas and inspiration along the way. We have created an environment that we hope will inspire collaboration within the creative community and propel Middle East design on an international scale.

We believe we’ve created a unique destination at d3 – one that is able to offer creative community infrastructure built from scratch, purpose built infrastructure and amenities, and all at an affordable rate for creatives.

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MOVERS & shakers

Any business that joins d3 should play an active role in promoting our dynamic community and contributing to the overall growth of Dubai and the wider region’s design industry.

Did you know?

In comparison to other free zones in the region, how does d3 stand in terms of operating costs?

How would you describe the profile of companies currently based in d3?

Given that the initiative is about the full value chain, and because we want to provide a home for both emerging designers and large multinational brands, we will have a range of rental options available. It won’t just be a flat rental fee that applies across the board.

In addition, as the pilot development site for Smart Dubai, a number of the initiatives we will be implementing will deliver real and very tangible operational savings to our creative partners. For example, resource use can be monitored to save energy and energy bills. Real time data will also allow the location to monitor footfall at the site, ensuring transportation links are synched and businesses can really get to grips with how consumers are behaving. This should bring considerable savings.

As part of d3’s plan to build a fully integrated, thriving community including all aspects of the design industry, we have secured an impressive mix of local, regional, and international creative talent from across different sectors with 19.5 per cent of the companies focusing on design, 16 per cent on luxury, 21 per cent on fashion, and 22 per cent on interior and furniture design.

Industry giants such as Chanel, Dior, and Chalhoub Group along with international designers such as the renowned Pilipino designer, Michael Cinco, prominent apparel label, Moncler, glass designer Lasvit, and industrial designer Magos Design will also be joining the district to help inspire emerging talents and drive the region’s design community forward.

This is the first free zone that offers both a free zone licence and a DED licence. Do you see this as an appealing factor for businesses?

Yes, absolutely. Giving creative partners of Dubai Design District the freedom of opting with a Free Zone licence or a non-Free Zone licence for their operations is very appealing.

Creative partners will be able to import and re-export commodities in and out of d3, subject to the activities specified in their commercial licence, and I am confident that this is the best model to suit our partners business and creative needs. It gives them flexibility and shows that we are trying to make doing business easy.

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What kind of pre-requisites does a business need to consider before it sets up base in d3?

All businesses should have a conversation with our dedicated and well informed team who can help with starting up. They can share information about the different licensing options available, what kind of space we have on offer, and of course they can explain what documentation is required as part of the process. We aim to make it as seamless and straightforward as possible.

Any business that joins d3 should play an active role in promoting our dynamic community and contributing to the overall growth of Dubai and the wider region’s design industry, 41

MOVERS & shakers

As a dedicated location for the region’s creative community, d3 is committed to supporting and collaborating with key events and platforms that help to foster the growth and development of the design industry.

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by engaging with other business partners, attending events, and collaborating closely with industry bodies. We want all of our partners to feel that d3 provides them with an effective platform from which they can champion creativity and design, and be keen to contribute to its overall success.

What steps is d3 undertaking to encourage creative collaboration within the free zone?

The most important step is creating a dedicated design community for all businesses and individuals, regardless of their size or creative focus. We are developing a unique, purpose built community that seeks to engage, inspire and enable creative talent. Collaborations can come out of anywhere, and we hope to encourage this by putting emerging and established businesses right next to each other in a 24/7 environment where people can live, work and play.

As a dedicated location for the region’s creative community, d3 is committed to supporting and collaborating with key events and platforms that help to foster the growth and development of the design industry. We have developed or been involved in events such as Fashion Forward and Sole DXB, the urban lifestyle festival that takes street style to a wider audience and it was a great success. Sole DXB brought together a mix of established and emerging artists, designers, musicians, retail chain stores and action sports brands to an audience of thousands, all seeking Dubai’s urban edge – and this is exactly what we want d3 to do once complete. We are also working closely with Dubai Design and Fashion Council to organise and host a dedicated Design Week.

What personally appeals to you most about working with d3 and leading its growth?

I am excited to be part of Dubai’s journey towards becoming a genuine centre for creativity and design. d3 is enabling the development of a real creative community here in the Emirate, where established brands will be able to operate alongside emerging talent, which will propel Middle East design on an international scale.

My career focus has been on commercially viable creative industry development and this project is so unique and exciting because we have an active, motivated, and committed base of talent and companies here. But, there is also such a strong appetite for products and ideas from the design talent for this region.

What is your vision for the future development of d3?

Our vision is for d3 to lie at the very heart of the Arab world’s design scene.

It should be a place where all of the world’s leading creative talent and brands want to be - and a place where emerging regional talent goes to be inspired. Ultimately, we want d3 to be able to be recognised alongside some of the world’s best known creative hubs, and we want to give the substantial talent there is in this region the global recognition it deserves.

For an online version, please visit: http://www.smeadvisor.com/news/ dubai-design-district

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14 – 16 September, 2015 Dubai, United Arab Emirates

The 8th edition of the International Exhibition for Intralogistics, Warehousing, Supply Chain, Ports, Port Equipment – Products & Services www.materialshandlingME.com Register online to visit at www.materialshandlingME.com/AD3

MOVERS & shakers

The spice of success

Inspired by childhood memories, Mansoor Al Bastaki launched Mastihashop UAE – a brand unique for its warmth and comprehensive range of products. We meet the passionate business owner and discover his entrepreneurial journey…

Tell us about Mastihashop.

What inspired you to start this business?

Mastihashop is an international franchise based in Athens, Greece.

There are eight outlets in Greece only and one in each of the following cities: New York, Paris, Jeddah, Mecca, Dubai, Cyprus, Istanbul, Taef. Mastihashop is a publically listed company at Athens stock exchange since 2001.

The company is the exclusive exporter of the mastic resin globally and is the sole owner of Mastic farms since more than 100 years (owned by the 44

mastic growers association which is 51 per cent shareholder of Mastihashop).

In 2001, the brand “Mastihashop” was established with a vision to infuse mastic in its different form to chocolates, baklavas, water, candies, sweet and savoury high-end grocery products, as well as skincare and pharmaceuticals.

On a personal front, I was truly inspired by the memories of my grandmother using mastic when I was younger. Its smell still takes me back to the wonderful childhood moments I shared with her.

What is Mastiha or Mastic?

Mastiha/Mastic is a natural and rare tree resin, which has proven to have health benefits with its anti-oxidant, anti-bacterial and anti-inflammatory qualities. It has been documented as the first natural chewing gum and as a cooking spice.

What kind of products and services do you offer?

Apart from the retail products that we offer, we are heavily targeting corporates by providing value-added offerings such as corporate gifts that would include customised chocolate

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MOVERS & shakers

boxes, gift hampers as well as mass giveaways using our sweet collections.

In addition to that, we offer private catering for our ice creams and shakes by using our elegant ice cream trolley or our funky food-truck!

What makes you different from competitors?

Apart from the retail products that we offer, we are heavily targeting corporates by providing value-added offerings such as corporate gifts that would include customised chocolate boxes, gift hampers as well as mass

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giveaways using our sweet collections.

In addition to that, we offer private catering for our ice creams and shakes by using our elegant ice cream trolley or our funky food-truck!

What products are best with a Mastic flavour?

ofile

Five second company pr

Mastihashop is a leading global Greek brand, characterised by its Mastihacafe, Mastihamarket and Mastihacare, offering high quality coffee, shakes, ice-cream, baklava sweets, chocolates and handmade candy as well as jams and marmalades, beauty products and gift items.

It blends well with sweet products.

Traditionally, it has been used in custards and Arabic/Mediterranean desserts and ice-cream.

What is the USP of Mastihashop?

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MOVERS & shakers

Mastihashop is a department store experience with a cosy boutique café feel combined to offer an immersive social experience.

Historically, Mastiha was only used in a few dishes. Being innovative, Mastihashop has infused Mastiha into chocolates, honey, biscuits as well as cosmetics, oil and water. A striking product is the Mastic infused cappuccino or ‘Masticcino’, which is the latest innovation of brand that has become popular among coffee lovers. The store is a café that also does gift items for corporates, friends and family, hotels etc.

Mastihashop is a department store experience with a cosy boutique café feel combined to offer an immersive social experience.

What products are available in the UAE Mastihashop?

Describe the process that you had to undergo as part of the Tejar Dubai initiative. How did this help you kick-start your business?

The exotic Mastihashop collection reflects the modernisation of traditional food remedies and include Mastihq infused chocolates, sweets, savoury products, cosmetics and skincare, pharmaceuticals, gifts as well as exotic coffee, ice cream, desserts and milkshakes.

Mansoor Al Bastaki

How would you summarise Mastihashop look and feel in one sentence?

Mastihashop is located in the Aswaq Building in Jumeirah 1, Al Wasl Road.

I was already running my business before being a member at Tejar Dubai initiative. Since I am a graduate of Bachelor’s Degree in Marketing & Management, I did lack some accounting and financial management skills and this is where Tejar Dubai gave me immense support by providing a dedicated consultant to make me grow and be solid in the field of finance and accounting management. The initiative

Meet the entrepreneur Mansoor Al Bastaki is a dynamic young entrepreneur whose passion is to develop luxury brands that reflects his personal lifestyle and fits in with the discerning tastes of the Middle Eastern clients.

like Mastihashop as in his previous career, he played an integral role in encouraging companies like MAN, Michelin, Air France, ECOLAB to move their regional head office to Dubai.

Mansoor assimilates his personal taste into his business ventures, particularly in the food or restaurant categories. His experience working in executive managerial positions and coming from a family who own a company established in 1925 and listed amongst the top 100 companies

by Dubai Chamber, serves him in good stead as he applies his inherited and acquired skills into developing the Mastihashop brand.

Currently Mansoor is a 100% shareholder in MAB Middle East Trading LLC, registered under the umbrella of Dubai SME and the Master Franchisee for UAE Mastihashop.

Mansoor’s talents are mainly in marketing the UAE as a hub for international brands

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Where is Mastihashop located?

An American University of Sharjah class 2004 graduate with Double Major Bachelors in Marketing & Management, Mansoor brings his previous career experience at Emirates Airlines and Jebel Ali Free Zone to develop and expand the Mastihashop reach throughout the UAE and regional markets.

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MOVERS & shakers

Within our organisation, we have a creative department as well as key business development personnel, who are responsible for bringing fresh ideas and new offerings to me – this way we are constantly innovating. In addition, I am a trendy person in my personal life and I always transfer that to my businesses!

Looking back, what were some of the biggest challenges you had to face while setting up your business?

helped me both in terms of company growth and personal growth. Today, I’m pleased to say that I am a board member at The Tejar Dubai Youth Council at Dubai Chamber of Commerce.

chocolates, sweets, and in other products like water for instance.

My strategies were of course staying active on social media, which is very popular in UAE, as well as participating in exhibitions that are most popular and crowded.

Who is your target audience?

In terms of our retail offerings, our core demographic is local and expats between the ages of 18 and 60. When it comes to corporate products, which includes anything from ice-cream to luxury gifts, we deal with government and semi-government entities as well as private companies.

You are working with a very niche product. Do you have a strategy in place that helps you reach out to your target market?

Mastic is very popular in the region however it is mainly used for preparing homemade sweets. Hence, it was already proven to me that my target audience would appreciate and love the idea of mastic being infused in

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What kind of market research did you have to undertake prior to launching your business? How important was this process?

My previous experience in the various aspects of managing a business gave me tremendous confidence when I decided to launch Mastihashop.

Hence, when I first looked at Mastihashop’s attractive product range, I knew it would be well-received and demanded by our target audience.

Of course, this has proven to be true and we have received great feedback and support from our clients.

How do you ensure that you are staying abreast competition and the latest market trends?

I think the biggest challenge I had to face was finding the perfect location for my first Mastihashop. I had to strike the right balance between paying reasonable rents while still staying in a prime location.

What are some exciting developments you have in the pipeline for the business?

Our Mastihashop food-truck is currently the most exciting project, especially with the popular ice creams and shakes that people are in love with!

What advice would you give to fellow entrepreneurs?

Start small and climb the ladder. These are simple words, which in my opinion, say it all!

For an online version, please visit: http://www.smeadvisor.com/news/thespice-of-success

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MOVERS & shakers

Digital trailblazers Sharad and Rohit Bachani

The 21st century is the definitive age for digital disruption – and one SME that is successfully leading such advancement is Merlin Digital. Under the vision of two entrepreneurial brothers – Sharad and Rohit Bachani, the company continues to bring in new innovations to the market and reinvent its offerings. Here’s an excerpt from our chat with the dynamic duo …

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MOVERS & shakers

What does Merlin Digital offer?

Dubai-based Merlin Digital is a consumer electronics company with a global presence. Our extensive offerings span smart mobility solutions, multimedia products, wearable fitness devices, digital surveillance, and 3D display solutions.

Merlin Digital is dedicated to providing its customers with the latest technology and consumer electronics products. You can find our products online at www.merlindigital.com, at our 200+ dedicated Merlin outlets spread across Dubai, Sharjah, Ukraine, and Singapore as well as in other countries, and at leading electronic superstores such as Emax, Sharaf DG, Plugins, and Dubai Duty Free.

How was Merlin Digital formed?

What was the inspiration behind the idea?

Eighteen years ago, we formed Merlin Digital in a small office in Bur Dubai, with the objective to bring the latest and most innovative products in the region at cost-effective pricing. The very foundation stone of Merlin is innovation. Innovation was and will always be the inspiration that drives us at Merlin.

What were some of the major challenges you faced along the way?

Introducing the latest in technology in itself is a great challenge.

However, our primary challenge has been bringing affordable products to the market without compromising on quality.

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How has your business grown since its inception in 1997? What are key factors that contribute to an SME’s growth and development?

Over the years, Merlin has witnessed an increase in annual turnover of around 48 times. We believe for any SME, embracing and driving change through constant improvement, staying ahead of the competition, constantly coming up with new ideas, keeping an eye on consumer trends, and pursuing growth and learning are key to sustainable growth.

What makes you different from competitors?

We think this can be attributed to several factors such as: a. All Merlin products go through a two-step quality check – first stage is after the manufacturing process at the factory and the second stage is after the shipment is received by Merlin’s dedicated QC team. b. We offer easy access to a wide offering of innovative products at cost-effective pricing coupled with international one-year warranty as well as excellent customer support. c. Merlin offers products in a wide range of categories, and as a result, we compete with different players.

We don’t have many competitors in some of our categories such as VR and robotics yet but it’s great to be in a space where we compete with some of the world’s best and well-known brands. d. Customer support with 24 hours turnaround time, we say 24 hours but average turnaround time is eight hours!

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MOVERS & shakers

Both Quantum Computing and Artificial Intelligence will have big advancements in the near future and it will be difficult to even imagine the sort of benefits these will DELIVER.

How do you innovate in order to stay ahead of the competition?

We focus on our consumers and keep a close eye on consumer trends; forecasting consumer requirements for their digital lifestyle.

What are some exciting developments in the pipeline?

What’s your vision for the next five years?

We have a successful business model in place that has been time tested in the Middle East. We now plan to export this via distribution and franchising agreements overseas. We have successfully started operations in Mauritius and India over the last year with close to 10 new Merlin outlets opened in these countries.

Our long-term vision is to have Merlin products available in all major cities worldwide.

Sharad and Rohit Bachani

Where do you see the digital sector moving in the near future?

What are primary market trends?

Some key areas that will flourish in the near future include – • Technology that drives the increasingly rapid movement towards sustainable development.

• Innovation with industry leading support. We take pride in being recognised as the most innovative SME in the city by the prestigious SME100 rankings.

• Both Quantum Computing and Artificial Intelligence will have big advancements in the near future and it will be difficult to even 50

imagine the sort of benefits these will bring forth. 3D printers are getting better and cheaper every month and the day is not far where products will be digital designs to be downloaded and printed at home.

How do you see the upcoming Expo 2020 impacting the digital sector?

Expo 2020 will open more doors to strong investment and partnership opportunities across the region.

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MOVERS & shakers

Sectors such as tourism, which have the potential to immensely benefit from the Expo, will open up more opportunities for digital players such as Merlin to introduce engaging and immersive technologies such as virtual reality-based tours, 360-degree videos, etc.

You’ve been consistently placed on the Dubai SME100 ranking in addition to winning several awards. What would you attribute this success to?

We would like to attribute this success to team work, our attitude to constantly improve ourselves, the ability to keep up with changing market trends, and openness to feedback.

What advice would you give to aspiring entrepreneurs looking to set up businesses in the UAE? It is very important for start-ups to maintain positive cash flow. Initially try to raise funding from revenue and clients, rather than banks. Good cash flow is key to running the business smoothly. There is no shortcut to success. The only sure thing that we know of is hard work.

Major achievements 1997 Since being established in 1997, Merlin has released more than a dozen of its own electronic products that have flown off the shelves of big-name electronics stores.

2010 In 2010, Merlin earned a nomination in the Middle East Retail Academy 2010 Awards in the category of Middle East Digital Lifestyle Brand of the Year.

Merlin was the only local company to compete for the award.

2011 With a proven track record of providing its customers with the latest technology and consumer electronics products, the company has been consistently ranked among the top 100 SMEs

by Dubai SME 100 – first in Innovation and eighth overall for 2013 as well as 20th top-performing SME in 2011.

For an online version, please visit: http://www.smeadvisor.com/news/ digital-trailblazers

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MOVERS & shakers

Strategies for success As the regional business landscape gets more competitive than ever before, we asked industry expert Shatha Maskiry, Managing Director, Protiviti Oman, to take a strategic look at the evolving trends and offer sound advice for SME growth and development‌

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MOVERS & shakers

The economic landscape has witnessed a revolution around the world; it has dismantled in many ways and SME growth has become a positive outbreak intensifying in recent years. Today, innovative SMEs are a major threat to some of the largest global corporations. The smallest start-up can find its way to substantial growth especially in a virtual world where there are hardly any rules or barriers to limit its progression other than the universal ethics that we freely elect to conform with.

In the Middle East, there are some success stories but many start-ups did not take off quite as well as they had intended.

A great idea is never enough especially today when it is all about specialization. Differentiation and high potential talent are the movers and shakers in the market.

To excel, you need to start reflecting with your inner self and then work your way out on what it is that you want to achieve. Here’s an outline of key factors SMEs need to consider in order to succeed in today’s fiercely competitive markets –

Entrepreneurial spirit Get in touch with your entrepreneurial soul and thrive on being visionary, optimistic and energetic but also pragmatic in calculating the disappointments and some of your steps may also backfire with failures. Leverage your core strengths and keep channelling it around you and your team. Don’t underestimate emotional intelligence; harness your intuition and be proactive to find your way out of unexpected events. Relish the adrenaline

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rush of uncertainties; it helps in strengthening entrepreneurial acumen and developing courage to look at adversity in the eye and stay focused to cross the finish line. Don’t procrastinate; it is a disastrous recipe that kills your potential and sometimes leaves you with no chance of revival – especially if it was an idea that ended up getting tapped by others.

Eye for untapped opportunities and identify market gaps Growth of SMEs is a key indicator that they exploited market gaps and innovated new opportunities.

Technology is rapidly disrupting almost every industry and before we look for it, technology will find its way to us. You cannot limit your vision to proximity of your business or market or customers. Ask yourself the following questions: what am I looking to achieve, how will I play a powerful role to acquire my target market and how will I produce a compelling and lasting value to my customers? You cannot answer these questions until you develop a strong awareness of market gaps and focus on how you will develop your business around the value of innovation, integration and collaboration.

Success thrives on organisation and hard work Be a little anxious, it is a healthy fuel to keep you pumped.

Organise yourself and pursue 53

MOVERS & shakers

Agility, resilience, optimism, innovation and collaboration are needed for an SME to hit the ground or else you can easily lose sight and head straight off a cliff.

Shatha Maskiry, Managing Director, Protiviti Oman

your initiatives with a drive for both personal and professional growth. You may have to work late nights and even make personal sacrifices but that is part of the entrepreneurial trial. Just master your navigation when you enter this new dark tunnel – do your homework diligently and be proactive in the decisions you make with respect to market trends.

In any tunnel, the light may be behind you, above you or a long way ahead or maybe there is no way out, but you cannot quit. If the drive is there, do not underestimate yourself; just take charge and you will find yourself holding the torch.

You have to enjoy the experience and believe that you are crafting your own magic just like other successful entrepreneurs did.

Leverage your technical capabilities and build a team You need to be a risk taker but hone in on your expertise and find others who are courageous to collaborate with you – many successful SMEs were a pair of young individuals with unique skillsets; and that is precisely what got their start-ups off the ground. Teamwork today is about trust and confidence as well as influencing the team to focus on differentiation, gamble with their capabilities and step out of their comfort zone but never lose sight on sharing a common vision that will create value. Lead your team to integrate and share ideas with you on how the venture will flourish in being the next wave of disruption. This effort is an evolving exercise where you and the team will need to

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continue observing, analysing and even re-strategizing to ensure you have a business model that is agile and can quickly adapt itself to the voices, reactions and needs of customers. We can empower customers but we cannot overpower them because they set the rules and they make the choices. The only control we have is to engage with them.

The digital world opened many doors for SMEs but also numerous traps for those who get too far ahead of themselves.

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MOVERS & shakers

Every blessing has its demands and the digital world demands a number of competences; which reminds us on the importance of STEM education that focuses on science, technology, engineering and math. This also translates how broad and far we can go in transforming and disrupting various industries. Having said that, being a fantastic innovator does not mean you have to be good at everything else on the commercial and business development aspect as far as running a business. You should definitely learn but find industry professionals who can help you with organisation, strategy, managing people, funding, costing and then start to integrate and understand how your work translates in the business world so you can contribute in developing agile business models around your solutions and in return, your team also enable you to identify new revenue streams to carry on growing.

fishes prefer to collaborate because they cannot compete with the new force of disruption. This is the reality of mobile and crowd revolution. There is no such thing as big fish eats small fish – today, the big fish wants to play with the small fishes.

Agility, resilience, optimism, innovation and collaboration are needed for an SME to hit the ground or else; you can easily lose sight and head straight off a cliff.

So why wait? Flex your muscles and embrace what is available to you to become the next successful entrepreneur without boundaries.

The wealth of opportunities are infinite and it all boils down to how fast you are when you see an untapped opportunity and what innovative value you will create that promises growth and sustainability.

Do not miss out on mentoring programmes A lot of organisations offer mentoring and it is important you embrace this opportunity. Go out there and find your match; a mentor who can share relevant experiences.

Sometimes, all you need is some good energy to stay optimistic, and sometimes you walk away with an insight that helps you come up with a ground breaking idea.

Size really does not matter Today, small fishes are swimming faster than big fishes and the big

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For an online version, please visit: http://www.smeadvisor.com/news/ strategies-for-success

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LEGAL

New Dubai fundraising law What YOU NEED need to know

A new Decree has been issued in Dubai regulating fundraising in the Emirate of Dubai (Dubai Decree No.9 of 2015). In summary, the law states that approval must be sought from the Dubai Islamic Affairs and Charitable Activities Department (IACAD) before any fundraising activity is carried out. Fundraising, the authorisation of fundraising or the announcement of fundraising are prohibited unless there is prior approval from IACAD. Experts Clyde & Co. provide a detailed analysis...

The new law applies to all “Donations” collected in whatever way and for whatever purpose anywhere in Dubai. “Donations” are defined as any “Property” voluntarily given by the donor as beneficence, kindness, assistance or charity. The term “Property” is translated as being anything with a material or monetary value. The new law would therefore cover monetary donations and the donation of goods in kind, which has also been confirmed to us by IACAD.

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There are a few exemptions to this approval requirement, which cover government collections, or those connected with the Ruler of Dubai or the Federal Supreme Council. However, most individuals and organisations wanting to do any charitable fundraising activities in Dubai will come under the new law, including schools and institutions which in the past have taken advantage of the exemption under the Federal Law (Federal Law No.

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LEGAL

2 of 2008 governing Public Welfare Associations).

IACAD has said that they do not want to stop charitable fundraising; instead they are trying to ensure that fundraising is carried out in a way that is regulated and that can be audited. There is no fee for the application and IACAD has confirmed that it should only take a few days to get a decision.

There are fairly steep penalties for violation of the law and fundraising without the necessary approvals.

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Penalties include: • A fine of between AED 5,000 – 100,000; and/or • Imprisonment of one month to one year These penalties might not always be imposed in the event of violation. Instead, in the event of breach of the law, an amicable settlement may be reached with IACAD (in their discretion) for one or more of the following actions: • Written warning of the violation

IACAD has said that they do not want to stop charitable fundraising; instead they are trying to ensure that fundraising is carried out in a way that is regulated and that can be audited.

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LEGAL

it is advisable to be cautious and to carry out any fundraising collections in conjunction with a registered IACAD Charitable Association.

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and undertaking not to repeat the infringement • Repayment of twice the amount of donated funds • Closure of the premises where the funds were raised for up to one year Public or private fundraising?

Prior to the new law in Dubai any individual or association wishing to hold a public fundraising event or collection would have needed to seek permission from IACAD to hold the event. IACAD would then ask that donations and collections be made through one of the registered Dubai Charitable Associations or Foundations, such as the Red Crescent or Dar Al Ber Society. Prior to the new law, such permission was not thought to be needed for private donations or private fundraising events or activities.

Under the new law, the definition of ‘Donation’ seems to be broad enough to capture public and private fundraising and donations.

In an interview with Dr Hamad Al Shaibani, Director-General of IACAD, he stated that private donations, such as parents to the school where their children attend or within a private home, do not need approval, as long as there are no public calls to donate money.

Despite this interview with the Director-General of IACAD, there is no such exemption in the new law covering private fundraising activity. Therefore, it is advisable to be cautious and to carry out any fundraising collections in conjunction with a registered IACAD Charitable Association, such as the Red Crescent or Dar Al Ber Society, or apply for approval for specific fundraising events in Dubai.

This will have a direct impact on schools, colleges and universities in Dubai wishing to hold non-uniform days, table top sales or bake sales where the proceeds are to go to

charity. Under the new law specific applications will need to be made to the IACAD and a registered IACAD Charitable Association will need to be brought in to administer the event and collect the donations.

The penalties for violation have certainly increased, with a larger fine that can be imposed, possible imprisonment and the closure of premises where the fundraising activities took place. Sometimes in Dubai you hear the phrase “seek forgiveness not permission”.

In the circumstances of the new law and with the possible new penalties that can be imposed, we recommend a cautious approach and to seek prior approval for any fundraising activities.

Further information If you would like further information on any issue raised in this update please contact: Ross Barfoot Partner, Clyde & Co E: ross.barfoot@clydeco.com Sinead Boden MENA Community Investment Manager E: sinead.boden@clydeco.com Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. www.clydeco.com

For an online version, please visit: http://www.smeadvisor.com/news/thenew-fundraising-law

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TECHNOLOGY

How to:

integrate video into your business

Global communication is being transformed as video content completely changes the way businesses interact with customers, employees and each other. In the following feature, we assess the evolving landscape and present top tips to get you ahead of the curve.

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In the age of information overload, the appeal of video content is quite obvious – it is an engaging, concise way of showcasing large chunks of data. But, that’s not all. Videos also have a deeper psychological and physiological impact on our minds. Susan Weinschenk, Ph.D., from The Weinschenk Institute highlights four fundamental reasons driving this – a) The Fusiform Facial area makes us pay attention to faces b) Voice conveys rich information c) Emotions are contagious d) Movement grabs attention Given the massive influence they have on our daily communications, it’s no wonder why videos are projected to account for 74 per cent of all internet traffic by 2017. This means that if your business isn’t integrating this medium into its communication plans, it stands to lose out significantly in the longterm.

In fact, big brands such as Nike and Chipotle are leading the way; creating rich video content that only strengthens their value proposition but also motivating employees to provide innovative products and solutions to customers.

The power of video marketing A large part of a company’s video content strategy focuses on reaching out to the customer – essentially in the form of video marketing.

Businesses are using video marketing techniques to: • Share their company story: customers never get to see the ‘human’ side of businesses, video content is a great way to connect with your customers on an emotional level. For instance, create a video of a typical day in your office and take viewers behind the scenes.

• Launch product previews: if you are in the testing phase with a product or service, use videos to

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give clients a sneak peek of what is to come and gauge their reaction.

• Give practical, ‘how to’ guidance: do you have a product or service that is technical in nature? Use a video demonstration to guide customers through a step-by-step process.

• Impart knowledge: In addition to information about your company and its products, videos are a fantastic medium to position yourself as an industry leader.

You can discuss current affairs, share latest market trends and highlight major events.

• Present client testimonials: what’s better than a customer sharing your story for you? Have a client that is extremely satisfied with your work? Arrange a slot to video interview them and publish it on your company website!

While, video marketing is an easy and affordable method of communicating with your customer, there is one snag – creating powerful content. This is one aspect that most companies forget to address, often at their own peril.

So, what needs to be done? Video Marketing Guru Kevin Daum shares top tips on generating compelling video content – • Identify internal and external communication chokepoints in your business.

• Create a strategic video list including powerful videos that speak to one, or few, not just many.

• Integrate your videos into an effective marketing strategy.

Video alone is not enough!

• Script with brevity, humour and impact. Don’t be boring!

• Make your scripts compelling with ROAR principles: Empathy, Objectivity and Differentiation.

• Make videos ‘The Awesome Experience’ – The convergence of need, entertainment and the unexpected.

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TECHNOLOGY

By 2017, video will account for

69% of all consumer internet traffic

64%

of marketers predict that video will dominate their strategies in the near future

A tenth of all video plays happen on mobiles and tablets

82%

believe video improves collaboration and productivity among colleagues separated by location.

76%

agree that video provides a close second to inperson communication – ranked higher than written forms of communication.

YouTube

7 in 10 people

look at a brand in a more positive light after watching interesting video content by them

is the number second search engine in the world

FAST

FIVE

TIPS TO MAXIMISING SUCCESS WITH VIDEOS

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1 Know your audience and customise your messaging accordingly – even a spectacular video will fail to make an impression on the wrong audience.

2 Use catchy titles for your videos to gain attention and include a relevant description.

3 Take advantage of apps such as Vine or

Instagram – they are easy to use and can be embedded within your website.

4 Include appropriate tags when posting videos on social media channels – your video needs to be easy to find!

5 Don’t forget to focus on mobile, which is one of the biggest areas of video consumption.

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TECHNOLOGY

internal videos have given business leaders an easy, quick and effective way of communicating with employees.

out a k c e h C video list of g apps editin ge 78! on pa

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• Create a video portfolio that promotes your brand, benefits stakeholders and engages your community Video for internal communications With the rising popularity of trends such as flexible working, freelancing and teleworking, we are truly in the era of a diversified workforce. In this context, internal videos have given business leaders an easy, quick and effective way of communicating with employees. What’s particularly attractive about this medium is that it allows for a more personal, face-to-face approach; bringing in the ‘human element’. For instance, rather than providing every employee with a physical or digital employee handbook, you can create an interactive video explaining each policy or procedure in detail. This makes the whole process interesting and memorable. But it doesn’t stop there; using video as a channel for internal communication has a wide range of advantages such as a) Lowering costs: In comparison to print documents, physical training sessions and multiple phone calls, videos are a cost effective way of communicating important internal messages with staff members. All you need in order to start is a basic video editing software on your phone and you are good to go! b) Providing flexible communication: If your company has a few staff members working overseas or if you are constantly travelling between offices, videos are the perfect way of staying in touch and exchanging information.

Moreover, they allow for viewing on-demand so that employees never miss out on critical announcements. Video conferencing is a great medium to connect with colleagues when working from different locations and is more personalised than a traditional audio call. This is especially true in today’s work environment, where 92 per cent

of millennials want to work remotely and 87 per cent want to work on their own clock, as a study by oDesk suggests. c) Improving employee engagement: Poor employee engagement is often caused by a lack of connection to the organisation’s overall mission and its business leaders. This often leads to high staff turnover. Videos help break down communication barriers and foster team work. Training videos are also useful in the case of complex subjects such as an advanced software; employees have the option to refer back to these videos as and when required without having to revisit the trainer. d) Increasing employee development: Videos are a cheaper, faster and more engaging medium of training staff. They encourage learning at your own pace and provide flexibility.

As video content continues to explode in popularity, it is imperative for your business to integrate it within its long-term strategy. Remember, with videos you have the opportunity to get customers and employees as excited about the business as you are!

For an online version, please visit: http://www.smeadvisor.com/news/integratevideo-into-your-business

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TECHNOLOGY

GETTING AHEAD Data without Borders, Backup without Worries

While most SMEs understand the importance of data in driving business growth, what they fail to address – often at their own peril – is securely managing such data. The reality is that loss of key data can have a huge financial impact on businesses – particularly SMEs. The implementation of a well-thought out storage and backup strategy is a critical element that can make all the difference.

Khwaja Saifuddin, Sr. Sales Director for South Asia, Middle East and Africa at WD, gives expert advice…

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TECHNOLOGY

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TECHNOLOGY

IDC predicts between 2013 and 2020 an expansion of the digital universe from 4.4 to 44 trillion Gigabytes.

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The world is becoming more and more digital. Even in smaller companies, not directly operating in the technology industry, a great amount of data is created for every single process. This generates a huge need for a secure and reliable storage system at any level of the supply chain. Paper archives and folders have been replaced by digital archives, which are lighter, handier and more practical to use.

Storing data safely and making them accessible to all employees has become a must.

This evolution stems from a number of factors, such as the different relationship between IT and business and the advancements in storage technologies. There looms an even more disruptive factor in the background: the explosion of data, which is reported by all analyst firms. Among the many forecasts, IDC predicts between 2013 and 2020 an expansion of the digital universe from 4.4 to 44 trillion Gigabytes.

Storage space is often limited and expensive. The constantly growing requirement for space results in a permanent increase in costs. The workspace is limited too and many offices can’t afford a dedicated server room.

Backup is not only critical, it is absolutely essential for every business, regardless of its size.

Together with people and brand, data is the most important asset of any business. Data is measureable, and has a value in monetary terms.

Saving, protecting and managing it safely, plus making sure that it doesn’t get lost must become the primary goal of every IT manager.

Not only storing data securely is critical, but one must make sure that this data is replicated - at least once, preferably twice or more - in order to be doubly safe. In other words: backup is a kind of “life insurance” for data.

Unfortunately, backup is too often underestimated, although

in recent years its importance to organisations has been on the increase. A real education has to be carried out on consumers, the individuals who create and consume data. Gartner predicts that by 2016 each US household has around 3.3 TB of data.

In my opinion, there are mainly two reasons for the low adoption of backup processes, both not concretely measurable and related to intangible aspects, such as lack of education and laziness.

It’s not a matter of budget anymore: nowadays, efficient backup software paired with good hardware is very affordable. The real issues are time and education: that is why we keep on investing a significant amount of resources to train the channel at all levels to transfer the idea of backup as a key concept.

While technology is evolutionary by nature, storage is one of its most dynamic and innovative areas. Developments in this field are changing the way we manage, share and access files, in other words the way we work.

Backup, storage servers, cloud, virtualization are just some of the possibilities that enable companies to protect and safeguard critical data, promote efficiency and meet the increasing need to manage bigger and bigger volumes of different data. But not all solutions are equivalent.

Storage vendors are called to ensure data security and protection with suitable technology tools. The whole process of data storage, access and management is potentially at risk and must be protected in its entirety. Not forgetting, the loss of physical control on personal data carries some psychological uncertainty. However, the market is offering a number of dedicated solutions, which are often both easy and innovative. These are products, mainly NAS and Storage

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TECHNOLOGY

Choosing carefully with whom to share explicit information or materials is just common sense, like picking a suitable password to access critical services.

Servers, which feature all the technologies required by a corporate system, such as Active Directory, high scalability, redundancy, Gigabit Ethernet ports, iSCSI, ftp server and p2p, but at the same time are lightweight, compact in size, and simple to use.

I do believe in Personal Cloud: namely the ability to create your own “cloud� in which to place personal data, while keeping the possibility to access them from anywhere - this brings the cloud home, or to the desired business environment. Files are stored safely while dedicated apps let you access, edit, save and share data anywhere in the world. Creating and sharing folders, inviting specific users, is a particularly appealing option but should be considered with caution. Choosing carefully with whom to share explicit information or materials with is just common sense, like picking a suitable password to access critical services.

The evolution of technology and the change in business needs to shape new storage requirements on the network and the emerging trends bring to light concepts such as convergence, standardization, advance planning and disaster recovery, with the final goal of overcoming existing limits in terms of footprint and cost.

Ultimately, new and advanced systems are being built on ultra-compact, high-density storage devices, and will provide scalability to support a future growth that’s both consistent and safe.

Meet the author...

Khwaja Saifuddin, Sr. Sales Director for South Asia, Middle East and Africa at WD

For an online version, please visit: ttp://www.smeadvisor.com/news/gettingahead-2

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INNOVATION

the catalyst to growth Innovation isn’t just about inventing radical products – it’s about finding a better way of doing things. Today, innovation is a critical factor driving social, economic and financial change across the world. We turned to Paolo Serra, Vice President of Business Park at Dubai World Central, to examine the different facets and provide top tips…

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INNOVATION

That the Government of the UAE has declared 2015 to be the ‘Year of Innovation’ is great news for UAE’s business sector. It is even better news for the SME sector which accounts for more than 90 per cent of all businesses in the country, generates 86 per cent of its private sector jobs, and contributes more than 60 per cent of the nation’s non-oil GDP. It has been repeatedly said that each organisation needs to innovate if it is to enjoy long-term success. From an SME perspective, what is innovation?

In simple words, it is the introduction of new products and services designed to deliver exceptional value to customers or the improvement of your current product portfolio to give you a competitive edge.

I would compare innovation to a flash of lightning. It needs several atmospheric conditions in place to happen, and when it does, it delivers a massive burst of energy.

We are fortunate to live in a country where such conditions that spark innovation exist in good measure.

It is no accident that the 2014 Global Innovation Index ranks the UAE 36th out of 143 countries – a significant feat for a young nation of 43 years.

Still, SMEs in the UAE have some way to go before they harness their true innovative potential. Assuming that the basic business premise is viable, here are three conditions SMEs must satisfy if they are to produce brilliant flashes of innovation.

1

Empowering people

This is the SME’s primary engine of innovation. It needs a leader with an enlightened mindset – one who knows and believes in his business vision, and one who is able to inspire his team.

While the boss provides the strategic direction, he also needs to equip each team member with

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As potential innovators, employees should be encouraged to cultivate the ‘intrapreneurs’ outlook – displaying the same leadership within their jurisdiction as if they were the entrepreneurs.

Paolo Serra, Vice President of Business Park, Dubai World Central

sufficient room to be creative and even change the status quo.

Drawing up a list of do’s and don’ts is hardly the ticket to innovation.

As potential innovators, employees should be encouraged to cultivate the ‘intrapreneurs’ outlook – displaying the same leadership within their jurisdiction as if they were the entrepreneurs.

Creating and sustaining a positive atmosphere at the workplace is a task by itself, but definitely within reach of all SMEs. Qualities such as compassion, kindness and confidence rarely cost much, yet they are very keys that unlock an

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INNOVATION

the process that results in a ground breaking idea is subtly groomed by strong partnerships with mentors, intelligence and technology providers, venture capitalists, customers and the like.

individual’s creative power. Other initiatives that boost employee morale could include the introduction of privileges – such as the right to have an afternoon power-nap, or dressdown Thursdays.

2

Sustaining partnerships

Often, the process that results in a ground breaking idea is subtly groomed by strong partnerships with mentors, intelligence and technology providers, venture capitalists, customers and the like. Your next idea may result from a coffee conversation you have with your customer. And do not dismiss the enthusiasm of the college student who may be interning with you this summer.

In the UAE, certain kinds of SMEs have the added option of operating out of economic free zones, which are known for their business-friendly ecosystem. Besides the manifold advantages such as 100 per cent foreign ownership, zero tax and the right to repatriate entire profits, many free zones also foster incubator and accelerator systems.

One critical partnership that most SMEs need is with their banker or venture capitalist. An oft-expressed point of frustration for many SMEs is difficulty in finding adequate funding.

To be fair, there are certain conditions in the UAE that cause a banker or a venture capitalist to remain wary when it comes to funding its SME sector. On the brighter side, I believe that funders, if they put their innovative thinking caps on, can themselves find a win-win solution around this problem.

3

Leveraging the regulatory and financial framework

As I have indicated at the outset, facilitating innovation is a top priority for the UAE’s policy makers, who have progressively listened and responded to the business community, including the SME sector. This proactive

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approach places the UAE 22nd out of the 189 countries assessed on the ease of doing business front.

The government is also aware that innovation in SMEs cannot flourish when certain factors are a drag on progress. An amendment of laws pertaining to bankruptcy and liquidation is on the wish-list of most SMEs in the country. After all, innovation is a process that carries the inherent risk of failure. The UAE’s SME sector anticipates such amendments that should eventually encourage more people to think boldly outside the box.

Another reassuring front is the Dubai Plan 2021 which places focus on people and their wellbeing. It is a vision that seeks to make the emirate the preferred place to live, work and invest. Further, the UAE government is working with the goal of making the country among the top 20 innovative hubs by 2021.

SMEs hope to benefit from raft of innovative initiatives that the Government may progressively execute with these goals in mind!

For an online version, please visit: http://www.smeadvisor.com/news/ innovation-the-catalyst-to-growth

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INNOVATION

THE

INNOVATION PARADIGM

The state of innovation

81% believe innovating In TERMS OF improving products and services will drive business performance

89%

of UAE businesses regard innovation as a strategic priority to help drive business growth

8% of UAE business executives report that the country has a strong innovationconducive environment

(Sources: The Bayt.com ‘Innovation in the MENA’ poll, KPMG Technology Innovation Survey 2012 and KPMG International 2012, PwC’s Middle East Innovation Survey, The third annual GE Global Innovation Barometer survey)

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INNOVATION

41%

61.8%

WHAT BUSINESSES ARE SAYING?

report a ‘riskaverse’ culture as a major roadblock to innovation.

say that innovation has led to improved fiFInancial performance

79% say their company directly involves customers in the innovation process by asking for their feedback

only

29%

of respondents (globally) believe the CEO is responsible for spearheading their company’s innovations.

68%

have developed a new or improved product through collaboration with another company

53% believe the ability to mine data inside and outside the company is a crucial ability for innovating successfully.

80%

Outlook for the future

expect to step up their innovation investment

57%

anticipate ‘breakthrough’ or ‘radical’ changes that include technical and business model innovation

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80% expect decision-makers to encourage a stronger entrepreneurial culture in the education system through stronger linkages between students and businesssavvy individuals

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STRATEGY

Nudge your exports

From start-ups to large establishments, the behavioural science technique ‘nudge theory’ has proved to be successful in supercharging growth and facilitating customer relationships. We asked industry expert Dr. Ashraf Mahate to explain the mechanics of this popular tool and highlight its range of benefits to SMEs…

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STRATEGY

Recently the UK government’s taxation department announced that it has managed to collect £210 million of additional taxation revenue from residents some of whom owed many thousands of pounds in outstanding bills. The success of this achievement is due to the use of behavioural economics or what is more commonly referred to as the “nudge” theory. The basis of the theory is to predict how people will respond to a particular situation and then to change it so that the desired outcome is achieved.

To test the theory, the taxation department conducted a trial on 100,000 taxpayers to understand what type of communication is most effective in getting them to pay their outstanding taxation bill. The results show that simply demanding a payment leads to only five per cent of the respondents paying the outstanding sum. However, if a text message is sent the response rate increases to 20 per cent.

It’s not just governments that are using nudge theory but also businesses – both large and small.

Businesses have realised that through a better understanding of the consumers’ social, cognitive and emotional factors leading to a purchase they can actually increase sales. The basis of nudge theory is that most people are not rationale individuals and their decision making is mostly based on thought processes that are irrational. The reason for this is that they rely on the right side of their brain which is argued to be faster than the left but is emotional and illogical. On the other hand, the left side of the brain is slow but rational and logical. Due to the speed advantage of the right side it ends up making most of the decisions especially the smaller, less important choices.

Therefore, through understanding the drivers that affect the left and right sides of the brain, firms can impact on the decisions that the individual makes.

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Businesses have realised that through a better understanding of the consumers’ social, cognitive and emotional factors leading to a purchase they can actually increase sales.

Researchers have found that people have a serious aversion to loss and they fear it twice as much as any gain. This leads to habit forming behaviour because any change implies that there is a risk which the individual may not wish to take. So moving from one supplier to another has the risk that the new one may not be as good as the old. The fear of loss can be used in a positive manner. Let’s take a look at the pizza company Dominos which found that incentivising customers with money off on their next order led to people coming back just to use the credit to buy another pizza rather than lose it.

Marketers have also found that giving their communication a positive message increases sales.

The German retailer Aldi had a negative image in the UK and its products were considered to be of a poor quality. In response, Aldi advertised the results of its focus group surveys which showed that’s its products were equally good or even better than comparable ones from leading brands. As a result Aldi repositioned itself not

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STRATEGY

An SME can carry out a number of simple actions to nudge the customer into carrying out the desired behaviour.

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as a discount store but a retailer for intelligent money savvy shoppers.

One of our most primitive instincts is to fit into the wider society so that we become part of the norm.

In one case, in Denmark, a series of green footprints were painted on the floor leading to the nearest bin.

As a result littering was reduced by 48 per cent because of the social norm of not littering. When making decisions quickly individuals tend to use an anchor by why to compare two choices. So if they have the choice to trade up they use the lower cost option and then compare against it. By adding more choices it makes it difficult to compare and hence leads to a more irrational choice. For example, the Economist magazine initially had two types of subscriptions namely online only and print with online at US$59 and US$125 respectively. The take up was 68 per cent for the former and 32 per cent for the latter. When a third option was added namely print only subscription at US$125 the subscription rates changed dramatically with no one selecting just the print option. The lower priced online only subscription fell to 16 per cent and the higher priced print with online increased to 84 per cent. Therefore, the magazine was able to increase its revenues through the use of nudge theory.

When it comes to longer term or complex decisions, there is a tendency to break them down into smaller more manageable ones. This is usually referred to as chunking and we have all come across it in our elementary mathematics classes under various different names. The UK health service was faced with the problem that doctors prescribed a treatment but the patients tended not to complete it. This usually meant that the failure to complete the course sometimes made the treatment useless and the health service lost millions of pounds in the process. To deal with the problem the health service broke down the

treatment into stages. So instead of asking a patient to take say one tablet three times a day for a month it was broken down to taking 30 red tablets followed by 30 blue and then 30 green. When the treat was broken down into stages the patients were more likely to complete the course even though it was the same medicine with different coloured outer coating. The reason for this is that people better perceive a task that has a meaningful path of progression with phases of action.

So how can an SME utilise nudge theory to increase sales and build loyal customers? The first step is to know what is the goal or objective of the exercise. In other words, what would you as the SME like to do with your customers i.e. come back again, carry out referrals, try out a new product, move up to higher priced option etc. The other part of this question is what aspect of the consumer’s behaviour you are trying to change? In effect, this question seeks to understand what type of relationship you currently have with your customers and what the desired one is. Once the strategic goals are known then one can move to designing the customer journey so that they become interested in your product or service, stay engaged and then become loyal customers who tell others. These three distinct steps usually take place over a period of time and hence the SME will need to design a journey that builds trust and loyalty over time.

An SME can carry out a number of simple actions to nudge the customer into carrying out the desired behaviour. The first is to understand that complex options slow down the decision making process and thus a simpler choice structure is more effective.

Therefore, it’s important to understand what information is relevant to the customer and to avoid information over-load. Second, is to appeal to the customer’s positive self-concept while

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STRATEGY

objectively benchmarking them with others. Here the SME needs to ensure that its communication provides the potential customer with a more optimistic and yet realistic expectation of success. Third, the typical customer is a creature of habit and stays away from away from what is new and unfamiliar.

People usually tend to stay with what they know rather than take a chance on an unknown. Therefore, it is vital that the SME builds a bridge between their current experience and the intended outcome. In fact the inertia to change is perhaps the most difficult challenge that is usually underestimated by companies. The stubbornness of customers’ needs the fifth tool which is to ensure that the message fits with the existing beliefs. The SME needs to ensure that its communication resonates with existing attitudes and beliefs.

As stated earlier that the right side of the brain is faster and is emotional hence it is important to connect with the customer’s emotions. Researchers have identified 48 different types of emotions from pride to fear. For example, the communication can smooth the negative emotions of fear that may be involved in a buying decision. With such a vast array of emotions the SME will need to understand the customer’s motivations and emotions and how they feel about their buying decision.

The age old saying that a bird in the hand is worth two in the bush reconfirms the avoidance of risk. The SME can reduce or eliminate risk by simply what the customer is willing to pay in order to avoid the risk of loss. Then there is the important tool of herd behaviour where the customer’s probability of a purchase depends on the behaviour of others.

Through peer comparison, the SME can encourage a potential customer to make a sale. Simple customer comparisons can be testimonials to actually informing them what their

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competitors are doing and perhaps how they are using your products or services.

People feel more comfortable with what they know or are familiar with as it creates a preference over what is unfamiliar. Familiarity can be developed in many different ways such as advertising, in store sampling, webinars, etc. Through developing a familiarity with the SME and its products or services it will be in a stronger position to convert the potential customer.

It is important that there is a balance between familiarity and over familiarity. In the case of the latter, the customer simply does not pay any attention. The SME can avoid over familiarity by drawing attention to the new aspects or information and thus keeping the customer engaged.

Evidence clearly shows that nudging is an effective tool to achieve the desired outcome – whether it’s to increase taxation receipts, make people carry out healthy and environmentally friendly choices or increase sales. Although, developing an effective customer journey and the appropriate nudges may be difficult it does however lead to more loyal and profitable customer relationships.

Meet the author...

Dr. Mahate received his doctorate from Cass City University Business School in London (UK).

He read Economics at University College London, followed by a Masters in International Economics and Banking at the University of Wales in Cardiff. Dr. Mahate is a professional educator and received his training at the Institute of Education (University of London).

He is a member of the Chartered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK). He is also a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS). He can be reached at ashraf.mahate@ dedc.gov.ae.

For an online version, please visit: http://www.smeadvisor.com/news/ nudge-your-exports

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TECH TRENDS

Top VIDEO editing apps Rushika Bhatia ,s view...

iMovie This popular video editing app, staple to iOS, offers a suite of advanced features, with an extremely sophisticated user interface.

The app comes with a portfolio of pre-made templates and themes, which is ideal for basic editing. Moreover, it allows you to add titles, soundtracks, filters and voice overs to existing videos. The app’s comprehensive range of features make it suitable for beginners as well as expert users.

Available on: iOS Cost: AED 17.99

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TECH TRENDS

From frequent flier miles and car rentals to hotel loyalty points and restaurant discounts, this app keeps track of all the rewards programmes you are enrolled in. It ties everything well into your current travel plans and gives you timely reminders.

A notable feature of this app is that it generates automate flight statuses and suggests alternative flight options when required.

Concur Concur tracks, organises, manages and reports all your travel expenses in a systematic and orderly manner. This app takes away the hassle of handling paper receipts and stores all your data on one platform. Using its ‘capture receipt’ feature, you can upload receipts by clicking a picture of them. For business owners and professionals, Concur is ideal to create a report of your travel expenditure and present a formalised summary to colleagues or partners.

Available on: iOS and Android Cost: Free

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TECH TRENDS

Magisto Magisto’s intuitive and easy to use interface makes it ideal for beginners. What makes this app different is that it allows users to select a series of images or videos and then automatically weaves them into one compact video. In addition to the app’s basic features such as inserting titles, transitions and music, users can also enjoy selection of premium features such as cloud storage and HQ downloads.

Available on: iOS and Android Cost: Basic version is free

Lumify Video Editor Lumify’s features include image stabilization, focus, exposure, cropping and editing.

That’s not all. It also allows for video trimming, insertion of titles and syncing soundtracks. The app provides the option to slow down, speed up or reverse videos.

One of the app’s handy features is that it automatically trims videos to fit into the soundtrack.

Available on: iOS Cost: Free

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TECH TRENDS

KineMaster Pro If you are looking for a slightly advanced solution, KineMaster Pro is the one of the best apps. The app gives the user a lot of control with its next-level features. For instance, you can drag and drop multiple videos and move them around with a few taps. The app also offers a range of professional-looking transitions that will give you a refined video.

Available on: Android Cost: Basic version is free

Cute Cut Pro Cute Cut Pro sets itself apart with its unique set of drawing tools that enable you to draw directly on your movie. The app offers over 30 drawing options including advanced brushes – these are great for creating professional effects on your video.

Moreover, the app provides customisable transitions with the option to tweak the transparency, border, shadow and other critical elements.

Available on: iOS Cost: AED 20.99

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TECH TRENDS

VivaVideo VivaVideo is another fantastic app for video editing – often remarked as one of the leading Android apps. The app offers over 60 dynamic video effects. It also provides basic options such as titles, transitions, music, dubbing and so on.

An interesting added feature is its selfie camera with six different lenses!

Available on: Android Cost: Free

dget Hot Gtahe of h!

Mont

Sony Xperia M5 Dual Key features: • An impressive 21.5MP rear camera • 5x Clear Image Zoom • 0.25-second Hybrid autofocus • Powerful 13MP front-facing ‘selfie cam’, which also comes with integrated autofocus and Full-HD video recording • A host of camera applications elevate your selfies to the next level – including Face in picture, AR mask and Style portrait • Large 2,600mAh battery offering up to two-days battery life(1) • Waterproof and dust-tight (3) • 64-bit 2.0 GHz Octa-core processor powered by MediaTek Helio X10 with 3GB RAM Xperia M5 Dual will be available in selected countries across emerging markets from mid-August.

Please note: (1) Battery life has been measured against Sony Mobile Communications AB’s smartphone usage profile, defined in September 2014 to represent the typical smartphone user’s active condition, including but not limited to a range of usage scenarios (calling, texting, web browsing, social networking, game playing, music listening, picture taking, picture browsing, online video watching, video recording and playback).

(2) Values are according to GSM Association Battery Life Measurement Technique as performed in controlled laboratory conditions. Actual time may vary.

(3) The Xperia M5 Dual is waterproof and protected against dust, so don’t worry if you get caught in the rain or want to wash off dirt under a tap, but remember – all ports and attached covers should be firmly closed. You should not put the device completely underwater or expose it to seawater, salt water, chlorinated water or liquids such as drinks. Abuse and improper use of device will invalidate warranty. The device has Ingress Protection rating IP65/68. For more info see http://support.sonymobile.com/gb/dm/ waterproof/. Note: the Xperia has a capless USB port to connect and charge. The USB port needs to be completely dry before charging.

For an online version, please visit: http://www.smeadvisor.com/news/topvideo-editing-apps

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