ISSUE: 31 │ April 2016
Strategic SME Partner
S TAY A H E A D
SMB Outliers: How they disrupt
established business models John Lincoln
Senior Vice President, Small and Medium Businesses, Etisalat Strategic Alliance Partner
Corporate Banking Partner
Sole Automotive Partner
Insurance Partner
Print Partner
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EDITORIAL THINK TANK Ajay Bindroo, CEO & Managing Partner, Clasico Brands Within a span of 18 months, Ajay has established a global venture that caters to consumer goods ranging from beauty and Personal Care, Grooming products to Oral Care, Bath and Hygiene, Hair Care and Homecare products. Under the flagship brand of “CLÁSICO BRANDS” over a dozen brands have been created and are in the process of being launched worldwide. Ajay is a true visionary with a big-picture. He's the one who makes sure that the company's concept and strategies are the right ones and that "we're staying on track."
Akram Miknas, Chairman and Founder, PROMOSEVEN HOLDINGS B.S.C.C. (P7H) Akram Miknas is known to be one of the pillars of modern marketing communications in the Middle East. He has just been recognized as No. 3 in the Middle East’s 50 Most Powerful People in Media, Marketing and Advertising. His involvement in real estate development, especially after the successful completion of the Pearl Towers (Abraj Al Lulu), anchored him as a leading accomplished developer in the Gulf. In early 2000, he branched into the hospitality business and successfully managed and built several hotels and outlets in Bahrain. His success in this business was crowned by becoming the franchisee of McDonald’s in Lebanon; where he built the business from 7 restaurants to 26 restaurants in 5 years.
Alexandar Williams, Director, Business Development, Department of Economic
Development (DED)
Alexandar Mathew Williams is presently the Director, Business Development, Department of Economic Development (DED), Government of Dubai. He has logged more than 20 years’ experience in SME development and business creation. His interests are focused on the life cycle dynamics of firm growth and mentoring entrepreneurs. In his present job, his main role and responsibility is developing a new initiatives for DED to take it to the next level as a knowledge-driven economic development agency.
Deepak J Babani, CEO, Eros Group Deepak J Babani has been with Eros Group for over 30 years. Mr. Babani has spearheaded the growth of Eros Group from a turnover of Dhs 6 million in 1981 to over Dhs 4 Billion in 2010. Under his leadership, Eros Group has established itself as the leading distributor for Consumer Electronics, Home Appliances, Telecom, IT and Air-conditioning products in the UAE, GCC and East African regions. Mr. Babani joined Eros as Marketing Manager and was promoted to General Manager in 1988 and subsequently to CEO in 2002.
K. Rajaram, CEO, Al Nabooda Automobiles K. Rajaram has more than three decades of experience in the automotive industry, starting his career in Oman in 1983. He moved to the UAE in 1996 to lead Al Nabooda Automobiles, the exclusive dealer of Audi, Porsche and Volkswagen in Dubai and the Northern Emirates. Under his leadership, Al Nabooda Automobiles has changed the face of the UAE automotive market by setting the highest benchmarks in customer service and pioneering the automobile ownership experience.
EDITORIAL THINK TANK Mishal Kanoo, Deputy Chairman, The Kanoo Group Mishal Kanoo serves as the Deputy Chairman of The Kanoo Group, one of the largest, independent and longest running family owned groups of companies in the Gulf region. He is also one of the most iconic business figures in the Middle East, featured on various magazines and listed in ‘Top 100 Powerful Arabs 2013’, ‘The 15 Wealthiest Arab Businessmen in the World 2012’, among others. Subsequently, he worked at Arthur Andersen in Dubai as an Auditor before taking up his current position in 1997. Mishal Kanoo adheres to family values and ideals in pursuit for quality and excellence which therefore greatly influenced his corporate policies and goals for The Kanoo Group as a reputable company.
Satyajeet Roy, Head of Business Banking (SME) Commercial Bank International Satya is a seasoned international banker with over 25 years of experience in Retail and Commercial Banking with a particular focus on serving SMEs. He has a strong track record of starting and developing businesses across geographies, managing the P&L, and driving innovation to ensure delivery of multi-product banking solutions to meet and exceed customer expectations.Prior to joining CBI, Satya had a long career at Citibank where he was most recently Head of Commercial Banking for UAE and Bahrain. During his time at Citi, Satya held various senior management roles in India, Middle East and the UK.
Rizwan Sajan, Founder & Chairman, Danube Group The Danube Group was founded and established by Mr. Rizwan Sajan in 1993. Over the last 22 years, the group has come a long way since its humble beginnings of a small trading shop in Deira to being the region’s leader in construction, building materials, home interiors and shop fitting industries. The head office & logistics facilities are present at the Jebel Ali Free Zone (JAFZA). Danube has coursed a path that transformed only one shop with 3 employees to over 40 locations in 9 countries worldwide including UAE, Oman, Bahrain, Saudi Arabia, Qatar, Africa and India, in addition to procurement offices in China with an employee strength of over 2,200 people. Being a top ranking business icon, Mr. Rizwan Sajan has been a source of inspiration for driving Danube’s business by leaps and bounds.
Tarek Hajjiri, Director of Legal Policy, Dubai Economic Council Tarek Hajjiri is the Director of Legal Policy, one of the strategic operational arms of the Dubai Economic Council (“Council”) Government of Dubai, UAE. Mr. Hajjiri serves as the Council’s advisory on all legal and regulatory matters at both local and federal levels that effect Dubai’s economy and competitiveness. Mr. Hajjiri through his position as Legal Policy director actively participates in the development of legal strategies and policies by providing policy recommendations that are the culmination of extensive research and collaboration with public and private sector representatives both locally and internationally.
Vikas Thapar, Chief Executive Officer, Emirates Money Vikas heads Emirates Money as its CEO. He was instrumental in the conceptualization and establishment of the company and continues to drive the growth and direction of Emirates Money. Vikas possesses more than 17 years of experience in the consumer finance industry and has worked with Citigroup in India and Indonesia. In his previous assignments with Citigroup, he played a prominent role in setting up the consumer finance business for Citigroup in Indonesia and was an integral part of the consumer finance set-up team at Citigroup India.
CONTENTS
APRIL 2016
16 Continued Strength in the Pillars of Economy
The four key sectors of UAE's economy continue to grow and gain momentum as we enter a critical period before the Dubai Expo 2020. There is much to be oprtimistic about as we enter what could be the biggest growth period in the UAE's history.
22 New dimension for business intelligence
Our reports produce a structured and unified view of a business and we cater to a broad spectrum of reporting requirements across industry segments, says Girish Sethumadhavan, Managing Director, Synovate.
24 SMEs are important insurance clients in the UAE The SME market represents the majority of the UAE economy and forms a very important part of the commercial insurance space.
26 At these levels, UAE property will offer good value
At these levels, a property in the UAE will offer good value. We can’t predict the prices of UAE property at the moment but a lot of serious investors are waiting on the sidelines and are expected to enter as the market improves says Niraj Masand, Director, Banke International Properties LLC.
28 Cloud-based IT a low-risk option
Steve Cox, Oracle’s vice president for midsize business, explains how businesses can use new IT options to make them more agile and efficient.
16
38 Innovation
investing stimulates European SME growth
30 30 SMB Outliers: How They
Disrupt Established Business Models
John Lincoln Senior Vice President – Small & Medium Business – Etisalat.
34 Where should SMEs set up shop in the UAE?
Despite the many benefits, the cost of operating in a free zone can prove considerably higher, with limitations on how and where you can do business. Business owners must look closely at how regulations differ across not only emirates and cities, but zones as well, says Craig Moore – Founder & CEO of Beehive.
44 Toyota Prius:
the world's most popular hybrid 48 SME World 2016: A Thumping Success
36 Successful selling :
3 levels of engagement
Engaging with the key users proactively, building the buy-in much before formal selling process is activated and creating the right kind of awareness are all key, Says V Ramkumar, Partner at Cedar Management Consulting International.
Bernd Reichert of the Executive Agency for Small and Medium Sized Companies Brussels, updates about the European Commissions funding tool specifically targeted towards SMEs – the SME Instrument – as part of its Research and Innovation Framework Programme called Horizon 2020. The SME Instrument has a budget of around 3 billion Euros in grants until the year 2020.
After its successful 2014 & 2015 editions, SME World was back and was held in partnership with Dubai SME at Atlantis, The Palm Dubai, Conference Center, on 15th March 2016.
53 Rare & Fabulous
High-end luxury products for CEOs and decision makers.
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Publisher's Note SPI Group
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Publisher & CEO Shantanu A.P. Group Editor Sandeep Sharma Assistant Editor Jinal Chheda Expert Contributors Craig Moore Bernd Reichert Dr. Paul J Hopkinson Dr. Rodrigo Perez Vega John Lincoln Melina Argyriou Simon Hodges Steve Cox V Ramkumar DESIGN A3R Creations Designer Retheesh Viswanath Web Developer Raj Shekar Reddy Project Coordinator Khushbu Ranjan Distribution Department Jerry P. Sam Editorial Enquiries & Contributions
We were hearing conflicting reports about the region's economic growth prospects over the past few months and decided to investigate. The result is our cover story about the "Continued Strength in the Pillars of Economy - Trade, Tourism, Healthcare, Retail." The resumption of UAE's trade with Iran will add one percentage point to GDP growth between 2016 and 2018. UAE could see trade growing further in the coming years, as it continues negotiations on a free trade agreement with China. The economy has been given a push in the past couple of years by government spending on infrastructure that has included not only airports but other civil projects such as roads, hospitals and museums. Having already channelled funds into developing transport links, accommodation, and the food and beverage sector, the country has laid much of the necessary groundwork to support an expanding leisure and entertainment segment, capable of attracting up to 45m visitors by 2021. The raft of attractions taking shape in the emirate includes Dubai Parks and Resorts, an integrated theme park resort which will up the game for tourism the sector. The retail industry continues to maintain a positive momentum attributed to key factors influencing the market like rising purchasing power, growing population comprising a large proportion of expatriates, changing consumption patterns and increasing penetration of international retail players. There is no question that it will maintain its momentum in specific retail categories. The medical industry is set to receive a major boost from the country's new five-year healthcare strategy presented by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai in January. Dubai Health Strategy 2021 is a blueprint for improving the quality and cost effectiveness of health services, and strengthening collaboration between the public and private sectors. The government is looking to encourage private investment in medical tourism and related real estate development, along with key e-health services. In this issue, we also bring you a report of our successfully concluded SME World Summit 2016, the third edition of the largest entrepreneurship conference in the Middle East & North Africa region, held on 15th March 2016 at Atlantis, The Palm Dubai. We are proud to note that the event engaged thousands of SME owners and C-Suite executives from acroos the GCC. We are pleased to nots that businesses in the region share our vision to unify the SME sector and to help develop the SME ecosystem in the UAE.
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APRIL 2016
Intelligent SME
BUSINESS ANNOUNCEMENTS
Emirates NBD's Worthy.ae promotes financial wellness Emirates NBD, a leading bank in the region, has launched Worthy. ae, an online hub for financial and wellbeing content, as part of the bank’s commitment to responsible banking. Worthy.ae will inform and educate readers on topics related to saving, smart spending, borrowing, investing and financial planning by addressing four phases in an individual’s life when it comes to money: Starting your career, Building your life, managing your wealth and Retiring. In line with the bank’s responsible banking programme, Worthy.ae will offer objective, non-promotional content, written and managed by thirdparty agencies including Bloomberg Middle East, Motivate Publishing and Starcom Mediavest. Explaining the concept behind Worthy.ae, Suvo Sarkar, Senior EVP & Group Head – Retail Banking & Wealth
Management, Emirates NBD said, “Emirates NBD has always been a strong advocate of greater consumer financial awareness to provide an enhanced and informed banking experience. As part of our commitment toward responsible banking, we have invested in multiple programmes aimed at empowering the customer community to manage their finances
wisely and fulfil their financial aspirations. We are certain that readers will find Worthy.ae a very valuable and informative resource.” Over the years, Emirates NBD has worked proactively to inform customers on spending and borrowing wisely and was the first bank in the region to make innovative use of its social media platforms to promote greater understanding of the financial space among the banking population in the UAE. The bank’s YouTube channel offers over 50 simple short videos on how to bank. In addition, the bank provides up-to-date market data and analyses to customers via its research website and has developed booklets explaining mutual funds, bonds and other investment products in simple consumer language.
We work as a team to provide the required synergy that exceeds our customer's expectation. With expert lawyers who thoroughly comprehend the legal practice. We ensure satisfactory resolutions and sound legal advise. Our superior practices are implemented in accordance with the local regulations. We pride ourselves in our quality cost effective and timely results. PRACTICE AREAS: • Commercial Laws • Property and Real Estate Laws • Labour Laws & Employment disputes • Litigation and Arbitration • Civil disputes • Banking and Finance • Criminal laws • Company Formations & Incorporations • Constructions laws disputes between Employer and Contractor • Civil Status Law & Will Formatting • Debt Recovery
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CONTACT US: Dubai, Office No. 2603 & No. 2602 Citadel Tower, Business Bay Ph: 00971-4-554 76 35, Fax: 00971-4-554 76 24 P.O Box: 96070 Dubai, UAE E-mail: info@awsuwaidi-advocates.com
APRIL 2016
Intelligent SME
BUSINESS ANNOUNCEMENTS
Emirates NBD Group Fintech Challenge: A global competition for financial technology start-ups Emirates NBD, a leading banking group in the Middle East region has launched its Global Innovation Program in partnership with Berlin-based Open Bank Project. The Emirates NBD Group Fintech Challenge is an arena for fintech experts, and a platform for start-ups and individual developers/ innovators around the world to present their big idea on financial technology. The Emirates NBD Group Fintech Challenge is centred around five (5) relevant challenge themes: • Customer Acquisition & Onboarding • Loyalty & Engagement • SME Banking • Banking in the age of Blockchain/ Biometrics/IoT • Islamic Banking Participating start-ups can leverage these challenge statements on leading technology trends such as Biometrics, Mobile Wallets/Payments, Artificial Intelligence, Social Media Banking in conjunction with new and emerging Business Models. Start-ups are invited to enter the competition before April 1st through
an online application at www. enbdgroupfintechchallenge.com. 15 to 20 Finalists will be chosen and receive travel stipends to participate in a 3-day hackathon in London from April 15-17. At the hackathon, the start-ups will further develop their products, receive mentoring from business, design, technology and communication experts; and present to senior management members of Emirates NBD and Emirates Islamic, who will determine the winners of the competition. The winning teams will receive 20,000 Euros, 12,500 Euros and 10,000 Euros for first, second and third prizes respectively, and awarded the opportunity to further develop the product with the bank. The competition is fuelled by the Open Bank Project API (Application Programming Interface), which allows developers to access data and services at the bank and build new apps and software solutions on top of these. The competition will be run in a controlled environment (‘sandbox’) in which test data emulating real situations is used. In recent years, Emirates NBD has
launched exciting next generation self-service banking innovations such as the mobile-based Fitness Account; DirectRemit, a 60-second online remittance service; Mobile Cheque Deposit, Banking via Twitter; Emirates NBD mePay, a peer-to-peer money transfer service; and ‘Shake n Save’. This has led to various awards including the Best Consumer Digital Bank in the Middle East and Africa by Global Finance, ‘Bank of the Year – Middle East 2015’ by The Banker and the Fitness Account Innovation of the Month December 2015 by EFMA.
DESCO Copy & Print Center is a trusted brand since last 3 decades. DESCO has the largest print network in UAE with 34 branches, some operating 24/7, it also has a full fledge Offset division equipped with "State of the Art" facilities. DESCO aims to bring printing near you with fast, efficient and economical printing solutions. To know more about DESCO log on to www.descoonline.com or call 800DESCO. 11 www.theintelligentsme.com
APRIL 2016
Intelligent SME
BUSINESS ANNOUNCEMENTS
Emirates NBD strategic initiative for women
‘Women of Tomorrow’ initiative to mentor and fund female entrepreneurs Emirates NBD Group, a leading financial services institution in the region, reinforced its commitment to women’s empowerment with its programmes to support female entrepreneurship. The strategic initiatives are aligned with the commitment of the UAE government, led by His Highness Sheikh Mohammad bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to the International Women’s Day 2016 campaign theme #PledgeforParity. Emirates NBD’s Women of Tomorrow #NisaAlGhad initiative invites women
in the UAE to submit innovative and feasible business proposals via the bank’s social media platform. Entries will be shortlisted by a jury made up of industry practitioners, following which one winner will be selected via public vote. Emirates NBD will offer the winner financing to bring the proposal to fruition, with free marketing support provided by Expatwoman.com, official partners of the Women of Tomorrow initiative. The bank has also pledged its continued support of the Emirates NBD e7 programme, created to support community projects, in collaboration with Promise of a Generation (POAG). The year-long programme offers network and development experience for young women in the UAE aged between 18 and 25. On March 12, 35 young women from across the seven emirates graduated from the
2015 e7 programme. Lubna Qassim, Executive Vice President, Group General Counsel & Company Secretary of Emirates NBD, said, “Emirates NBD’s strategy supports the vision of the UAE as the country strives to actively encourage and nurture women leadership. Our pilot Women of Tomorrow initiative will harness the potential of female entrepreneurs and aspirants to successfully create a commercially viable business, contributing to the long term economic prosperity of UAE.” Commenting on the Emirates NBD e7 programme, Qassim said: “These young women have proven that they are indeed the future leaders of this generation and have transformative ideas that we recognized at our graduation ceremony recently. We are also excited to welcome our new participants.”
APRIL 2016
Intelligent SME
BUSINESS ANNOUNCEMENTS
EIBFS Hosts Graduation for 236 UAE Nationals
Emirates Institute for Banking and Financial Studies (EIBFS), a regional leader in banking and finance education and training, in collaboration with Emirates NBD honoured 236 UAE nationals for successfully completing the Al Misha’al programme, as well as the Programme for Accelerated Learning (PAL). Hosted at the EIBFS Dubai campus, the distinguished ceremony celebrated 185 Al Misha’al graduates and 51 PAL graduates. Committed to supporting the career growth of UAE nationals, EIBFS partnered with Emirates NBD to design and deliver comprehensive and rigorous training and mentoring programmes for both high school and university level graduates. Al Misha’al and PAL include a wide range of modules and offer on the job training to equip trainees with the professional and personal skills needed for pursuing a career at Emirates NBD among other banks in the UAE. Commenting on the ceremony, Jamal Al Jassmi, General Manager of EIBFS, said: “We congratulate all 236 UAE graduates. I am confident this year’s talented and dedicated class is well empowered to face industry challenges head on and make their mark in the banking and finance industry.”
13 www.theintelligentsme.com
APRIL 2016
Intelligent SME
SME UPDATES
Al-Futtaim Motors and GHQ of UAE Armed Forces announce Land Cruiser winner Al-Futtaim Motors, exclusive distributor of Toyota and Lexus in the UAE, and the General Headquarters of the United Arab Emirates Armed Forces, have announced the winner of a new Toyota Land Cruiser, offered by Al-Futtaim Motors, following the draw which took place at the at the Abu Dhabi GHQ Officers Club. Ali Abdulla Khalifa Seif Al Musafri is the lucky winner who received a 2016 Land Cruiser 4.0 GXR following the purchase of a 2016 Land Cruiser 4.6 VXR. Yousuf Ali Al Raeesi, General Manager, Government Relations, Health Security, Safety and Environment at Al-Futtaim Motors, said: “We have had great response from the UAE Armed Forces following our agreement last month, which offered them special discounted prices on select Toyota and Lexus vehicles with new benefits added on a regular basis. This draw on a Toyota Land Cruiser is a way of showing our appreciation for this partnership.� A second draw will take place in May, Al-Futtaim Motors will offer any UAE Armed Forces employee purchasing a car until the end of April a chance to automatically enter the final draw.
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APRIL 2016
Intelligent SME
COVER STORY
Trade, Tourism, Healthcare, Retail Continued Strength in the Pillars of Economy The four key sectors of UAE's economy continue to grow and gain momentum as we enter a critical period before the Dubai Expo 2020. There is much to be oprtimistic about as we enter what could be the biggest growth period in the UAE's history. 16 www.theintelligentsme.com
APRIL 2016
Intelligent SME
COVER STORY Development released in early December. Inflation cooled somewhat in the latter half of the year, as the consumer price index fell from 4.68% year-on-year (y-o-y) in May to 3.07% in November. Looking ahead, Dubai's drive to create a knowledge-led economy is set to gather further steam, bolstered by legal reforms and project rollouts that took place in 2015 against the backdrop of the UAE's "Year of Innovation".
Trade expectations
T
he year 2015 was led by solid performance in established sectors of the economy, including financial services, transport, manufacturing and construction, which helped Dubai weather the knock-on effects of lower oil prices throughout 2015. The emirate is expected to record full-year GDP growth of around 4%, according to estimates from the Department of Economic
The Public-Private Partnership (PPP) Law, introduced in late October, will give infrastructure development greater flexibility, as projects in preparation for World Expo 2020 gain pace. The law codifies various models of PPP activity, including build-ownoperate-transfer and design-buildoperate schemes. Investment in Dubai is also set to benefit from the new UAE Commercial Companies Law released in July, which aims to lower the bureaucratic hurdles for foreign firms looking to expand their footprint in the country. Despite recent regional tensions, the easing of sanctions against Iran in mid-January signals further good news for Dubai, with the IMF predicting that the resumption of trade with its neighbour, particularly in nonhydrocarbons sectors, will add one percentage point to the UAE's GDP growth between 2016 and 2018. Dubai could see its trade reach extended further in the coming years, as the UAE continues negotiations on a possible free trade agreement with China. The emirate also continued to strengthen its position as a global Islamic economic hub in 2015, buoyed by growing investor interest in shariacompliant finance. Its efforts received a boost in December with the issuing of a law establishing the Emirates Global Centre for Accreditation.
Market indicators
While Dubai's banking sector recorded 8.7% y-o-y credit growth in the third quarter of 2015, attributed in part to the lead up to World Expo 2020, Moody's warned in early December that a liquidity crunch was expected in both the UAE and the broader
GCC region. The UAE economy has been given a push in the past couple of years by government spending on infrastructure that has included not only airports but other civil projects such as roads, hospitals and museums. The aviation industry is expected to contribute 32 per cent to Dubai's GDP by 2020, according to government estimates. Since June, the price of crude has declined by 60 per cent amid waning demand from emerging markets and an increase in production from North America. Oil revenue pays for some 60 per cent of the federal budget. Bond prices and credit default swaps saw relatively little movement in 2015, reflecting continuing investor confidence in Dubai's sovereign debt, though market optimism waned somewhat towards the end of the year. The Dubai Financial Market General Index fell to a two-year low in the second week of December amid concerns over energy prices.
TOURISM: Poised for a theme park boom With demand for leisure tourism on the rise, Dubai's first major theme parks are expected to prove a significant draw when they open for business later this year. Leisure and entertainment (L&E) represents an important segment of Dubai's tourism industry, with theme parks in particular seen as a high-growth industry due to their wide appeal. Strong client association with media tie-ins and little in the way of regional competition should put these and other attractions on a sound footing as the emirate continues efforts to increase visitor numbers from 14.2m in 2015 to 20m by 2020, in addition to the 25m visitors anticipated during the six-month World Expo 2020. Dubai is broadening its tourism offering to make it more appealing to different segments. Younger travellers may have less to spend on accommodation but will be drawn to other experiences on offer, while families are increasingly attracted by the growing number of theme parks and other attractions. In a report published last year, consultancy PwC concluded that Dubai and the broader UAE had the potential to compete with the likes
17 www.theintelligentsme.com
APRIL 2016
Intelligent SME
COVER STORY
of Orlando, Florida as a global theme park destination. Having already channelled funds into developing transport links, accommodation, and the food and beverage sector, the country has laid much of the necessary groundwork to support an expanding L&E segment, capable of attracting up to 45m visitors by 2021, according to PwC. The raft of attractions taking shape in the emirate includes Dubai Parks and Resorts, an integrated theme park resort. Once completed, Dubai Parks and Resorts will be the region's largest year-round, theme park resort destination, worth more than Dh10.5bn ($2.86bn). It will offer a variety of attractions in motiongate Dubai, a Hollywood movie-inspired theme park; Bollywood Parks Dubai, the first theme park based on the sights and sounds of Bollywood; as well as LEGOLAND Dubai and LEGOLAND Water Park, the region's first water park catering to families
18 www.theintelligentsme.com
with children ages 2-12. On track to open in October 2016, the development will feature more than 100 rides and attractions, supported by a resort hotel, eateries and retail outlets. Dubai Parks and Resorts is targeting 6.7m ticketed visitors and $650m in revenue in 2017, its first full year of operations. Other theme parks opening this year include the IMG Worlds of Adventure, which is owned by IMG Theme Park LLC. The theme park will stretch over 1.5m sq feet, which will make it the largest indoor theme park in the world. Like Dubai Parks and Resorts, IMG Worlds of Adventure also has a strong media connection through partnerships with entertainment giants MARVEL and Cartoon Network for a range of superheroes and animated characters that will be featured in the theme park. Utilising themes from movie franchises will give Dubai's new entertainment hubs a useful ready-made connection with their client base. As per IEC estimates,
Dubai's theme parks could generate around $5bn in annual revenue by 2020. Dubai Safari Park, a 119-ha zoo, is also expected to open by mid-2016. The Dh150m ($40.8m) development will house close to 1000 animals, with more than 350 species of rare and endangered animals. Related industries, ranging from retail to real estate, could also see knock-on benefits from tourism growth and growth of new tourism segments, including family tourism, experiential tourism and entertainment, generates opportunities in related industries, such as construction, real estate, infrastructure and retail.
Retail Sector:
Poised for growth Alpen Capital 's 'GCC Retail Industry' report expects retail sales in the GCC region to grow at a CAGR of 7.3 per cent from 2013 to 2018 reaching
APRIL 2016
Intelligent SME
COVER STORY $284.5bn. What are the factors driving this growth? The retail industry continues to maintain a positive momentum attributed to key factors influencing the market like robust economic growth, rising purchasing power, growing population comprising a large proportion of expatriates, changing consumption patterns and increasing penetration of international retail players. Retail structure in the GCC region is undergoing significant transformation, driven by the social and economic developments that have resulted in an increase in modern retail formats such as hypermarkets and supermarkets. The Gulf is also gearing to host events such as World Expo 2020 and FIFA 2022, leading to a growing influx of tourists and creating immense opportunities for existing and new retailers in the region. The increase of retail sales area, growing e-commerce segment, easy availability of credit and interest payment plans, increasing consumer confidence and government initiatives to promote infrastructure, hospitality and tourism sectors also feature among the other key driving factors contributing to the growth of the retail industry in the GCC. The airport based duty free sales is projected to grow at a CAGR of 11.3 per cent compared to the GCC retail growth average of 7.3 per cent between 2013 and 2018. This growth is driven by an increase in passenger traffic at the major airports in Dubai, Abu Dhabi and Doha. The upcoming events such as Expo 2020 and FIFA World Cup 2022 are seen as major drivers of tourist inflow into the region. The resultant expansion of the tourism industry is expected to fuel the growth of airport retail sales in the region. The other category which is promising is the retail sales of hypermarkets/supermarkets which will grow at a CAGR of 9.2 per cent for the same period. Hypermarkets/ supermarkets continue as the fastest growing retail channel in the region. This growth is expected to be driven by increasing disposable incomes and modernisation of the industry. The report forecasts sale at supermarket and hypermarkets to grow at a CAGR of 9.2 per cent from 2013 to 2018 - a shade higher than the industry average of 7.3 per cent - is
this growth expected to come at the expense of other retail formats like the high-street and convenience stores? While supermarkets and hypermarkets are increasing in appeal as they offer a variety of products under one roof, a hasslefree shopping experience and other value-added facilities, their growth is not necessarily at the expense of other retail formats. Modern convenience store format is emerging as one of the highly promising segments of the retail industry in the region due to its innovative and customised offerings and ease of access. Customers with a fast moving lifestyle prefer to shop at these stores, typically located in the neighbouring towers, for their daily requirements, even as they visit hypermarkets for bulk shopping on a weekly or monthly basis. The format is gaining popularity in the GCC as convenience stores tend to be less crowded and provide customers with a more pleasant shopping experience. The retailers also find opening these stores attractive as the set-up cost is
lesser as compared to large modern outlets. These stores occupy a small area typically between 1,000 sq. mtrs and 2,200 sq. mtrs in nearby vicinity, where rents are typically lower than in the big malls and shopping centers. Also, the stores do not require a large staff for managing daily operations. With local and international retail chains opening convenience stores, the format has seen many innovations. Considering the changing buying pattern of consumers, many international players are entering the market with new small stores which might directly compete with the traditional convenience stores. This trend is leading many convenience stores to look at modernising in order to manage the competition. The GCC region's retail industry receives an inherent growth thrust from its young, diverse and expanding population base. Retailers are constantly looking at new and easy ways of being accessible to a new generation of consumers. E-commerce is one of the trends that is on the rise. Though still in its nascent stage, this
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Intelligent SME
COVER STORY trend is gaining popularity among the youth due to its competitive offers as well as the convenience of shopping from one's home. M-commerce is another medium gaining popularity with many brands launching their mobile app in order to appeal to the senses of the younger demographic. In addition, the retail industry also faces some other challenges. Despite the increase in total retail space and expected GLA supply in the coming years, retail rental rates in many Gulf cities have been on an upward trend. Such overhead escalations can have a negative bearing on retailers' margins. A shortage of skilled local workforce increases the dependence of the industry on the expatriate staff. E-commerce remains highly unexplored in this region due to inadequate online infrastructure and logistics.
The healthcare boom continues
The medical industry in Dubai is set to receive a major boost from the country's new five-year health care strategy. Presented by Sheikh Mohammed bin Rashid Al Maktoum, vice-president and prime minister of the UAE and ruler of Dubai, in late January, the Dubai Health Strategy 2021 was developed as a five-year blueprint for improving the quality and cost effectiveness of health services in the emirate, and strengthening collaboration between the public and private sectors. The government is looking to encourage private investment in medical tourism and related real estate development, along with key e-health services.
Private Health Shift
In recent years the Dubai Health Authority has focused on shifting the provision of health services from the public to the private sector, with a target 30:70 division of funding. A combined Dh12.8bn ($3.5bn) was spent on health care in Dubai in 2014, with the private health sector accounting for roughly two-thirds of the total, at Dh8.5bn ($2.3bn). This represented a 37% increase over the private health care spend recorded in 2012.
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Globally, it's been proven that health care services are more efficient when privatised, though the government should continue to provide health care to those who cannot afford private coverage. The shift towards private health services is being supported in large part by the full implementation of compulsory medical insurance, which is gradually being extended to cover all nationals as well as expatriate residents and workers.
Medical tourism draw
In an effort to building on growth in the local private health care market, one of Dubai Health Strategy 2021's key objectives is to develop Dubai as a regional and international destination for medical tourism. By the end of the decade, the country aims to more than triple the number of health visitors from the 135,000 guests posted in 2014 to 500,000 by 2020. By capitalising on the emirate's centralised location in the region and offering high-level services, Dubai officials estimate the medical tourism segment could generate up to Dh2.6bn ($708m) per annum by 2020. Medical tourism is an important sector, and is set to grow considerably in the coming years. Thanks to prior investment, Dubai is well positioned to serve as a regional and international hub for these services. Recognising the potential for medical tourism revenues, investment in the sector has expanded, with 22 new health facilities - 18 private and four public scheduled to open in the coming years.
Facilities and hospitality
Private real estate developments targeting the medical tourism segment offer another avenue for investment. Phase 1 of DHCC, which has focused on health care services, education and research, has demonstrated
steady growth at both strategic and operational levels. Phase 2 of DHCC, which is currently under way, will achieve significant growth through unique wellness concepts and specialised hospitals with complementary residential offerings.
Human resources and e-health
While development of physical infrastructure continues apace, the emirate is also focused on expanding and upgrading the sector's human resources and IT capacity. Stakeholders often identify attracting and retaining top specialists from abroad as one of the primary challenges facing the industry; continuing education on new procedures and treatments is another concern. New government initiatives, including those outlined in the recently unveiled national health strategy, may hold the key. The government has committed to stepping up investments in training and education, and to further developing human resources. Dubai Health Strategy 2021 also focuses on encouraging local research as a means of driving innovation and efficiency for medical and technical staff. Alongside training, the emirate also plans to focus on developing stronger e-health infrastructure, ranging from electronic medical records (EMR) to health care apps. This should grant greater flexibility to patients moving between treatment centres, while also offering opportunities for further private sector involvement. EMR vendors who supply small and medium-sized clinics, polyclinics and pharmacies will find a huge market in Dubai, as we have more than 2000 such establishments. There is significant scope for growth for health information exchange companies and EMR companies, as well as smart app developers.
APRIL 2016
Intelligent SME
SME FINANCE
New dimension for business intelligence Our reports produce a structured and unified view of a business and we cater to a broad spectrum of reporting requirements across industry segments, says Girish Sethumadhavan, Managing Director, Synovate.
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Intelligent SME
SME FINANCE
Q: Please share the story that
led to the creation of Synovate.
Every business idea lies in a real world challenge. Quite clearly, the Middle East & African markets have an information lacuna and present mighty challenges to decision makers across industries. The idea of Synovate is to create an information infrastructure that can bridge this gap. Credit Information and credit scores can fuel economic growth, increase access to essential resources and enable more efficient allocation of risk, costs and financial reserves. The reason for this is simple: where access to business information is asymmetrical or unavailable, access to lending and credit resources becomes more difficult, expensive and inefficient. In contrast, the availability of credit information and the free flow of objective data are the cornerstones of a modern, successful market economy. Credit reporting and credit scores allow companies to freely transact with each other because the more objective information the business has, the more accurately it can meet its customer needs and preferences. Synovate addresses this need with innovative use of technology, business research and analysis capabilities and use of alternate data to add a new dimension to credit risk decisioning.
Q:
What is your vision behind for Synovate? What products do you offer? Our vision is to be the “Bloomberg of Private Companies”. We provide a comprehensive suite of due diligence and business intelligence solutions to make critical business decisions with confidence. We offer Business Intelligence Reports; reports that are compiled through a process of self-certification, web & social media resources, registry data, news reports and trade references. The report produces a structured and unified view of a business. Different variants of our Business Intelligence Reports cater to a broad spectrum of reporting requirements across industry segments
Q:
Which industry sectors does Synovate target?
We partner companies seeking to identify, quantify and control credit risk. Banks and lenders use our services to independently verify and validate information available on borrowers." Properly extending credit and setting payment terms are critical to the life of every business. Any business extending credit to its customers must have a sound credit policy that sets the guidelines for granting credit. Synovate is a partner to any such company seeking to identify, quantify and control credit risk. Also, banks and lending institutions use our services to independently verify and validate the information available on its borrowers. We are active in industries such as Banking & Financial Services, Leasing, Insurance, Hospitality, Logistics, Media and Technology
Q: Shed some light on your
journey with Synovate?
I am a first generation entrepreneur with almost no background or experience of running a business. It’s been unpredictable and a lot of responsibility but enjoyable at the same time. I made a modest beginning in 2014 as an outsourced field verification company to provide field audit services to banks and financial institutions. I soon realized that the quality of information available to decision-makers is far from acceptable. The reason is that companies offering credit information services follow a ‘one-size-fits-all’ model and the business reports are devoid of any intelligence. Certain agencies are also plagued by an inherent information bias. The key to differentiate Synovate from competition was to challenge the existing
conventions of credit reporting and offer a service that specifically addresses the needs of the local market. We developed technology platforms with intuitive information processing and learning capabilities. With technology, we were also able to offer our customers convenient and easy access to business reports. We are proud to be the regions first online credit information platform. Our solution enabled us to extend the definition of credit information services across the credit lifecycle i.e. underwriting, account management and collections. Another significant area of innovation was the introduction of the concept of ‘Information Partners’. We created an array of information partners across industry segments to gain insights on how a company manages its business credit. The journey has been one full of learning. I realized that there are no eureka moments in business; innovation comes from a gradual accumulation of knowledge and experience.
Q:
Many business owners emphasize the challenges encountered whilst setting up their enterprise. What do you think are the challenges in setting up a business in the UAE? For entrepreneurs, setting up a new business in UAE continues to be challenging. I believe there is lack of instructions, resources and guidelines for setting up a new entity. We depend on companies providing business setup services who also lack sufficient knowledge and training. While free zones have simpler procedures; there is room for improving the ease of setting up a business in the mainland. Online resources and trained customer service representatives can improve the experience. The other aspect is access to seed capital or early-stage funding that allows the entrepreneur enough room for focused experimentation and opportunity validation. A startup ecosystem that gives an entrepreneur access to essential resources, angel investors, financial consultants and legal experts will significantly improve the likelihood of success.
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APRIL 2016
Intelligent SME
SME INSURANCE
SMEs are important insurance clients in the UAE The SME market represents the majority of the UAE economy and forms a very important part of the commercial insurance space.
A
IG SME Package Solutions strategy is built around a proposition that takes into account the evolving behaviorsand different insurance needs of SMEs.
SME Package Value Proposition – The AIG view Efficient, Hassle – free trading platforms: An average SME premium could be around AED 5,500 so in a low premium world a streamlined channel strategy is vital to success; Customer focus - specialized product: SMEs look for insurance that fits their business, protects their exposures and cares for tailor made solutions. Distribution expertise: Schemes, facilities, partner–specific tailored product capability, academies, training and development expertise. Analytics & Science Expertise: Predictive models, portfolio insights and analysis. Complete solutions for small business: One multiline policy, Packaged, comprehensive coverage. In the UAE market a significant portion of SMEs is still not insured unless it is mandatory, i.e. Free Zones. When it comes to onshore operations, SME clients do not consider insurance as a priority and do not recognize the importance of the Risk Management process until there is an unfortunate event of a claim.
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APRIL 2016
Intelligent SME
SME INSURANCE
Restaurants, offices, and shops are the ones with a higher interest in buying insurance compared to other segments such as education and clinics (AIG portfolio analysis report, 2016). A recent survey on SMEs conducted by AIG provides the following motivations to buy a policy; » It is mandatory; » It is a contractual obligation; » It provides Security/Protection Is it a surprise that the essence of an insurance policy, security and protection, is not the primary motive when buying insurance? Probably not. Uninsured SMEs represent a high growth potential and this finding also implies that it is the responsibility of the insurance sector to continue investing on educating SMEs and making sure that businesses are well aware of relevant and required cover. Approaching SMEs with insurance solutions that are relevant to their business needs is crucial in building a ripe business partnership. Insureds should be informed about risk management and insurance coverage
SME clients do not consider insurance as a priority and do not recognize the importance of the Risk Management process until there is an unfortunate event of a claim." -- for example, with one multiline policy, critical insurance needs can be covered around 3 main pillars: 1. People, 2. Assets, 3. Profit. The SME market may not account for the most profitable books on a year by year basis as it consists of a very volatile book but at the same time it is predictable so also attractive. Most of the claims incidents are derived from fires, glass breakage, water damages and labour accidents. It is worth restating that it is critical that the insurance sector continues to educate the market and offer risk management solutions on how such incidents can be prevented or reduced. Another conclusion that can be made is that when purchasing
insurance, SMEs tend to buy packaged/multiline policies and not stand alone coverages, as they understand the economies of scale and the benefit of being fully protected. The SME market is expected to grow in 2016 and with the right insurance protection SMEs business will continue to play a vital role in the growth of the UAE economy. AIG’s database of about 6,500 active SME insurance policies in the UAE, derived from deep expertise in the SME sector has brought AIG the MENA SME Insurer of the Year Award in 2016. AIG SME Package Solutions will continue to invest in innovative products, customized solutions and portfolio analysis to identify further trends and even more comprehensive packages. Melina Argyriou, Head of SME Package Middle East and North Africa Zone, AIG
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APRIL 2016
Intelligent SME
UAE PROPERTY VIEW
At these levels, UAE property will offer good value At these levels, a property in the UAE will offer good value We can’t predict the prices of UAE property at the moment but a lot of serious investors are waiting on the sidelines and are expected to enter as the market improves says Niraj Masand, Director, Banke International Properties LLC.
Q:
What made you choose real estate as a career and how long have you been in the brokerage business? Honestly, I got into real estate by chance. After having completed my graduation in marketing and post-graduation in finance, I was at the cross roads of having to choose between a typical sales job or a banking job. Having studied in depth in both, I was keen to pursue an industry which required financial as well as my marketing skills. Real estate provided me that opportunity. Back then in 2001, there was the advent of International Property Consultants in India, and thus the journey began with Jones Lang LaSalle.
Q:
What are the core values and the vision of Banke International? Please tell us more about the company. Banke International prides itself in the fact that expertise & integrity form the core of our business. This along with an ambitious growth outlook to become one of the biggest players in the Middle East market will drive our business and the employees every single day. Banke was set up with the purpose of being one of the most professional home grown real estate companies competing with the large IPC’s in a business they have been doing for years.
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APRIL 2016
Intelligent SME
UAE PROPERTY VIEW
Q: What kind of bespoke
The industry has its set of challenges however it has become a lot more mature and realistic than what we saw in 2007/08. The biggest challenge we see in the market today is that it is still highly speculative and the market sees things move up fairly fast with the reverse also holding true.
services does Banke International offer to its customers?
• Residential Sales & Leasing • Commercial Sales & Leasing • Property Management & Supervision • Real Estate Portfolio
Q:
What is your view of the real estate market in 2016? Is it a buyer’s market?
It’s very difficult to predict the prices especially if the answer could be different to different projects. However, I feel that property investment will hold value and if people invest with the objective of holding 3-5 years, the investment will be in the black. Short term investments can catch you off guard."
The real estate market in 2016 is throwing open a lot of opportunities for investors and end users. However, not everyone has the courage to enter at these times. You will see majority of the people enter once the markets have moved up in 2017. For the brave, it’s a good opportunity to purchase. We can’t predict if the prices will go down any further, but at these levels we are seeing a lot of value.
Q:
The SME sector makes up for 80% of businesses in this region. As an SME, how do you see the current business environment impacting the SME community? Dubai being all about the biggest and the best continues to live up to its fascination, thus seeing the large corporates and businesses getting maximum attention and share of voice. Having said that, comparatively, setting up a business and operating in UAE is relatively easier than a lot of other countries.
Q:
With 12 years of experience in real estate in Dubai, what is your outlook on the evolution of the real estate industry? What are the challenges and opportunities one can encounter in this sector? The real estate sector has come a long way since the freehold market opened up, which is about the same time I entered the UAE real estate market.
Q:
Will property value increase or decrease by 2020, given the current economic situation? Your guess is as good as mine. It’s very difficult to predict the prices especially if the answer could be different to different projects. However, more importantly, I feel that property investment will hold value and if people invest with the objective of holding 3-5 years, the investment will be in the black. Short term investments can catch you off guard.
Q:
2015 brought the launch of affordable housing schemes in Dubai. Will this continue in 2016? Yes, in all probability, affordable housing will be the flavour of the year.
Q:
What do you think about the World Expo 2020? What are the business opportunities that the Expo will bring to the real estate sector? The Expo 2020 will have a positive impact on Dubai’s economy specially the real estate market however the most direct benefit will be felt in the hospitality and tourism sector. Nearly Dh39 billion in investments is expected to be poured into the event, according to the Dubai Department of Tourism and Commerce Marketing, while Deutsche Bank has estimated Dh158 billion will be required to upgrade the emirate’s infrastructure for the event. With the growth in local and tourist population, coupled with the progress on the EXPO 2020 event, Dubai will attract massive investment opportunities across various sectors of the economy which includes Education, Real Estate, Retail, Hospitality and Logistics sectors.
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APRIL 2016
Intelligent SME
BUSINESS AGILITY
Cloud-based IT a low-risk option Steve Cox, Oracle’s vice president for midsize business, explains how businesses can use new IT options to make them more agile and efficient.
M
arch 2016 saw stormy weather ripping through the UAE, creating chaos and dousing the land in water not seen for years. YouTube videos seen all over the world showed youngsters wakeboarding down the streets, towed by desert-going 4-by-4s;
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and even an enterprising businessman in a shopping trolley punting himself across the carpark. Disruption like this may cause chaos, but it prompts some very enterprising responses, sometimes pretty risky ones. Every business has heard about the
disruptive effects of the new digital platform – social, mobile, cloud, analytics, big data and the internet of things – all these have the potential to create chaos, yet managed correctly the associated risks can be minimized, and their innovation potential unlocked.
APRIL 2016
Intelligent SME
BUSINESS AGILITY In all likelihood you’ve already had this big picture painted for you, yet the prospect of embracing any of these elements can be daunting. In this article I’ll attempt to provide a starting point from which to make these technologies work for your business. Every business has some sort of IT backbone – it could be financial systems, supply chain, customer interactions, distribution and delivery, or manufacturing. In all instances these systems are hosted on your premises, looked after by engineers, and requiring regular maintenance and upgrades. It’s a treadmill of ever increasing costs and less and less scope for change. By putting just one of these systems on the cloud you’ll start feeling the difference. You may wonder why, considering all you’re doing is changing from an ownership to a subscription model, right? Right, but there’s more. These processes running on the cloud give you a “live” view of what the business is doing and the
information you’re gathering. This makes a fundamental difference to the way yourbusiness is run. If you know what’s selling and what isn’t, or where you’re haemorrhaging money on non-essential purchases, or the cost of delivering goods to certain areas – all as it happens – you can act immediately to change things for the better. With a “live” report to hand at any time, you and your team will have to abandon the monthly sales meeting and be prepared to make decisions when the data demands. Faster decision-making leads to a faster response to events that would have been analysed at a future date when the data was, for all intents and purposes, dead. Already you may be thinking, “it’s as I thought: any adoption of these new technologies will disrupt the way I run my business.” Oracle has thought of that, and publishes, alongside its new product, business best practices that draw from an extensive database of customers who
have shared their implementation practices. The technology is, therefore, sufficiently mature to provide this rich information to help you avoid pitfalls and enhance your business processes in line with global best practice. One single step into consuming IT via subscription will be a trigger for transformation you can control. IT today differs fundamentally from preceding iterations: in the past the business used IT to do the same thing more efficiently. Today, IT is the catalyst that will lead change.
Steve Cox is Vice President of Suite & Industry Marketing, Cloud Business Group, responsible for go-tomarket messaging for Oracle's SaaS applications at the suite-level and for Industries.
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APRIL 2016
Intelligent SME
DISRUPTION
SMB OUTLIERS: HOW THEY DISRUPT ESTABLISHED BUSINESS MODELS
John Lincoln Senior Vice President – Small & Medium Business – Etisalat.
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APRIL 2016
Intelligent SME
DISRUPTION
L
ifespans of top companies are shrinking. Iconic companies are regularly removed from the S&P 500 Index and replaced with newer ones that have emerged with huge market capitalisations. Disruption is a critical element of this churn. From the positive and negative aspects of disruption a typical pattern emerges, as new technologies come to market and subsequently take hold. At the outset, I ask you to keep the lessons of history in mind. The most value creating incumbent growth businesses originated through disruption. Companies such as Toyota, Wal-Mart, Intel, Southwest Air, Microsoft, Oracle, Cisco, Bloomberg, Best Buy, Amazon, E-Bay and Salesforce.com were the disruptors of their generation and industry sectors. And like in the preceding two decades, there is a high probability that most large companies of today will not exist in the next 20 years So how do incumbents go down in the disruption valley of death? The reasons are varied but key strands run through them. These include overconfidence, a sudden collapse, too little, too late and ongoing decline. What are the hallmarks of disruptive innovators? We have seen that they broadly fall into five types. 1. They are introduced by an “outsider.” 2. They are less expensive than existing products. 3. They target underserved or new markets. 4. They are initially inferior to existing products. 5. They advance by enabling technology. But the most important characteristic is that disruptors seek exponential performance increases whilst incumbents seek linear performance improvements. According to Clayton Christensen, one of the world's foremost authorities on disruptive innovation, “Sustaining innovation is controlled by incumbents, but disruptive innovation is owned by new companies.”
There is a high probability that most large companies today will not exist in the next 20 years 70 60 50 40
Production based on current data
30 20 10 0
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
2025
Year (each data point represents a rolling 7-year average of average lifespan) Source: Data Innosight / Richard N. Foster / Standard & Poor's
Value exists in identifying the response and emotions surrounding each phase of the innovation pattern, because, as with disruption itself, the actions/reactions of incumbents and innovators play important roles in how parties progress through innovation."
What are the stages of disruption?
1
2
Disruption
Evolution
Introduce product with new point of view
Innovate rapidly along this new trajectory
3
4
Convergence Reimagination Complete value proposition relative to legacy
Re-think the entire category
Source: http://recode.net/2014/01/04/the-four-states-of-disruption-2/
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Intelligent SME
DISRUPTION
The exponential growth in performance of SMACT technologies enable any SMB to disrupt an incumbent
Interfaces Dasboards Experimentation
Autonomy
Staff on demand
I D E A S
S C A L E
Community & Crowd
Algorithms
Leveraged Assets Engagements
Social
MTP: Massive Transformative Purpose SMACT: Social, Mobile, Analystics, Cloud, Things Example: Airbnb, GiftHub, Homejoy, Uber, Kickstarter, Bitcoin, TaskRabbit and Coursera Source: Exponential Organization-Why new organization are ten times better, faster and cheaper that yours [and what to do about it] Salim Ismail with Michael S Malone & Yori Van Geest
Value exists in identifying the response and emotions surrounding each phase of the innovation pattern, because, as with disruption itself, the actions/reactions of incumbents and innovators play important roles in how parties progress through innovation. We can describe four stages that comprise the innovation pattern for technology products: Disruption of incumbent; rapid and linear evolution; appealing convergence; and complete re-imagination. The exponential adoption of innovative propositions creates a virtuous cycle of continuous disruption. This is exacerbated in digital disruptions through propositions that are better, stronger and faster. For SMBs, the network and algorithm are key enablers in the disruptive space. The exponential growth in performance of SMACT
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technologies enables SMBs to disrupt an incumbent. When you’re the incumbent, your key decision is to choose carefully what you view as disruptive or not. The business team needs to develop a keen understanding of the dynamics of competitive offerings, and know when a new model can offer more to customers and partners in a different way. When you’re the disruptor, your key decision point is really when and if to embrace convergence. Once you make the choices — in terms of business model or product offering — to embrace the point of view of the incumbent, you stand to gain from the bridge to the existing base of customers.
In summary, SMBs disrupt incumbents through
1) Accessing resource's that they don’t own 2) Treating information as their greatest asset. And the message for senior executives is clear: if you aim to maintain control of your corporation and deliver value to shareholders and customers, you must embrace creative destruction rather than wait to become a victim of this unstoppable force. John Lincoln Senior Vice President – Small & Medium Business – Etisalat
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The Professional Currency Exchange & Payment Facility for businesses. Yes, that’s exactly what we offer. Headquartered in UK, with an ofďŹ ce in Dubai, we, at Currency Matters are known to serve the foreign exchange and international payment requirements of our clients in the UAE and GCC. So, the next time you plan to pay an overseas supplier or receive foreign currency from a customer, talk to us if better exchange rates, secured payment gateway and highly professional services matter to you. Suite 2009, Emirates Financial Towers South, DIFC, Dubai, UAE T: +971 434 314 28 E: info@cmme.ae Currency Matters Limited, a leading foreign currency exchange broker and specialist in international payments. Currency Matters is regulated by the Financial Conduct Authority (FCA) as an Authorised Payment Institution, FCA Registration No: 537841 and registered with HM Revenue and Customs as a Money Service Business (MSB), MSB Registration No: 12140232. In the USA we are registered as a MSB under the Bank Secrecy Act with the Financial Crimes Enforcement Network (FinCEN), Registration Number 31000023679279. In the UAE we are regulated by the DFSA as a Representative Office, No. F003134 | Company Registration No: 4461030.
APRIL 2016
Intelligent SME
SME ADVISORY
Where should SMEs set up shop in the UAE? Despite the many benefits, the cost of operating in a free zone can prove considerably higher, with limitations on how and where you can do business. Business owners must look closely at how regulations differ across not only emirates and cities, but zones as well, says Craig Moore – Founder & CEO of Beehive.
S
uccess in business is often a result of being in the right place at the right time. With many entrepreneurs flocking to the UAE to start businesses and innovate existing ones, the question for most remains this: where is the right place to set up shop? The choice of city is a fundamental one — different cities and emirates across the country offer different kinds of opportunities long term and short term. But there is another choice that is
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equally fundamental: should you start in a free zone or onshore? There are now 37 free zones established in the UAE to encourage foreign investment into the country. They operate under international regulations, free of taxes and often under a wholly different regulatory scheme than onshore businesses do. Free zones have become so successful that the UAE is now the leading country in the Arab world for foreign direct investment, drawing in
$11.85 billion in 2014 alone. The Jebel Ali Free Zone (Jafza) alone accounts for around 40% of the UAE’s total direct foreign investment. With business accommodating laws, regulations, and tax structures, free zones have become a primary attraction for entrepreneurs. Despite the many benefits, the cost of operating in a free zone can prove considerably higher, with limitations on how and where you can do business. Business owners must look closely at how
APRIL 2016
Intelligent SME
SME ADVISORY regulations differ across not only emirates and cities, but zones as well. Beehive, for example, resides within the Dubai Multi Commodities Center (DMCC), which was founded in 2002 and won the fDi award for Global Free Zone of the Year in the SME category. With an impressive tenant list nearing 8,000, the DMCC adds nearly 200 companies a month, with the majority new to Dubai. Free zones often cater to specific industries, and generally make it much easier to navigate the legality of starting a business. Yet, for all the thousands that have chosen a free zone in which to base their operations, many more have chosen to eschew them. Initial share capital requirements vary by zone, but are nearly always higher than those onshore. The minimum paid up share capital required for a free zone establishment (FZE) or free zone company (FZC) can vary from AED 50,000 to AED 1,000, whereas many onshore operations require no share capital at all. Real estate costs in free zones are usually higher than in their onshore counterparts – though this is not universally true. For example, office space in Silicon Oasis can be rented for only AED30,000 a year, while the lowest cost option in an onshore space in downtown Dubai runs closer to AED50-60,000 a year. Proximity to the main Sheikh Zayed Highway and business centers can be a more accurate predictor of cost than legal jurisdiction. What free zones do offer, however, is the opportunity to establish a virtual office; a perfect solution for SMEs that do not yet require a physical space, but want to move forward with applying for the proper licenses. What sets free zones furthest apart from their onshore counterparts are ownership laws. Starting a company in the UAE requires that 51% of ownership be given to an Emirati national, whereas free zones allow 100% foreign ownership and 100% repatriation of capital and profits with no currency restrictions. Residency visas for employees are also processed according to unique free zone laws. For example, the law allowing UAE firms to place a 6-month ban on employees who depart their
companies prior to completing two years is not enforced inside free zones. Companies are also provided relief from corporate, personal income and capital gains taxes. Despite these benefits, companies can have more difficulty in trading with companies outside their free zone, with most finding it necessary to hire a commercial agent or distributor onshore to do business. The law technically prohibits free zone trade with the rest of the country, particularly for service providers. International trades do not fall under this category, however, and are allowed and encouraged, largely tax-free. The UAE’s 36 free zones, from Ras al Khaimah to Abu Dhabi, offer regulatory environments that create diverse centers of learning, collaboration, and expertise. Free zones have aided in the diversification of the UAE’s economy since laws first passed to allow them, with free zones
accounting for nearly a third of the UAE’s non-oil economy as of this year, the Ministry of Economy reports. But SMEs need to work out individually the pros and cons of operating in a free zone and decide whether the benefits outweigh the costs. While the arrangement can have a huge positive impact for those operating in import/export and knowledge industries, the costs and trading restrictions could have negative consequences for others.
Craig Moore – Founder & CEO of Beehive. As Founder and Craig is responsible for overseeing the overall strategic direction and managing the day-to-day operations of Beehive.
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Intelligent SME
SME BEST PRACTICE
Successful selling : 3 levels of engagement Engaging with the key users proactively, building the buy-in much before formal selling process is activated and creating the right kind of awareness are all key, Says V Ramkumar, Partner at Cedar Management Consulting International.
W
e get to meet sales organizations everyday, and the one thing that repeatedly strikes you whenever we get to meet a typical person in the sales function, is the characteristic drive to sell, the knack of connecting with the customer and the quest for numbers. In the SME world, where selling is typically B2B, this is increasingly becoming an area of importance, given the nature of the competition that organizations are exposed to in industries with low barriers to entry. At the end of the day, when everything else is equal, it is the
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better sales machine that drives the revenue. So what is the secret sauce that successful salesmen seem to know, that the less privileged don’t? Or put it differently, is selling only an art or is there also a science behind it? If there is a diligent, structured methodology to selling, can someone be successful at it even without having to be so dashing and eloquent? Much has been written on this topic – visit any store and the number of self-help books on the topic can flummox you. This note is not an attempt to make an elongated lecture. Instead, we want to look at the
3 levels of engagement, with 3 different kinds of audiences that you deal with in a sales process, and just build a sense of awareness around it. And bear in mind the 3 questions that need to be pro-actively answered across each of these stages: • What – is the service / product that you are offering all about? • Who – else in the market has been your customer and what is their experience? • Why – should the customer engage with you. What is the value proposition? The first level to cross is that of the
APRIL 2016
Intelligent SME
SME BEST PRACTICE
Client Attractiveness
Gate Keeper. As innocuous as it may sound, the reality is High that 50% of potential selling can be thwarted if this is not addressed effectively. Just to know the ‘purchasing’ function of the customer, the typical process followed – be it an RFP or having an empanelment of registered vendors or just ensuring that there is an awareness created around what you have to offer, can be quite worth its while, in the medium to longrun. Of course, this does not assure the sale, but at least it ensures an opportunity that is well deserved is not missed. Participating in the right exhibitions or conferences, registering and retaining memberships in the Low right forums or associations, periodic circulation of information about your products, services and customers are all key to get past this gate. The second level is then to get to the key user. The primary audience of your services who needs to be aware and convinced of your value proposition. It is this customer who would eventually be essentially dealing with your organization on a day-to-day basis once the sale is made. There would be a significant weight to the view of the key user in any decision making process, and unless there is a solid reason for rejection, generally the key user’s perspective gets the maximum weight to the decision. So much so, that if you could convincingly graduate this audience from being just a buyer to an internal ambassador, then therein lies true salesmanship! The third level is the decision maker, who finally calls the shots. To put it crudely, the one who would be paying for the product or the service. Now this could be the CEO of the customer organization – which is typical of small and medium enterprises, or could be a ‘committee’ in larger organizations, and definitely so with public sector enterprises. This is the most dispassionate, focused, value proposition driven selling. If one has got past the first two stages, usually the third stage is relatively straight forward – unless of course you have
Key Account Development
Key Account Management
Opportunistic/ Tactical
Maintenance
Client Relationship Strength
At the end of the day, the substance and value proposition of the underlying product, and the effectiveness of the salesman are equally, if not more important for a sustained and long term relationship." a competitive bid and the committee looks to decide between you and your competitor. We had also discussed earlier, in this column, about the need for a Key Account Management Strategy – particularly where the client attractiveness in terms of business potential is high, and the strength of client relationship is also strong. What needs to be borne in mind here, is that the reference to the ‘client’ cuts
High
across all 3 levels as articulated above. It wouldn’t be sufficient to engage just with the gate keepers – that is the ‘necessary-but-not-sufficient’ category. Engaging with the key users proactively, building the buy-in much before formal selling process is activated and creating the right kind of awareness are all key. While all of the above are critical from a sales process standpoint, at the end of the day, the substance and value proposition of the underlying product, and the effectiveness of the salesman are equally, if not more important for a sustained and long term relationship. Value is not always measured quantitatively, there is a qualitative element that cannot be ignored too! V Ramkumar is a Partner at Cedar Management Consulting International LLC, a US based management consulting firm whose heritage includes being part of the firm founded by creators of the Balanced Scorecard. Ram has over 20 years of management consulting and strategic transformation experience. He can be reached at v.ramkumar@ cedar-consulting.com
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APRIL 2016
Intelligent SME
SME FINANCE
Innovation investing stimulates European SME growth Bernd Reichert of the Executive Agency for Small and Medium Sized Companies Brussels, updates about the European Commissions funding tool specifically targeted towards SMEs – the SME Instrument – as part of its Research and Innovation Framework Programme called Horizon 2020. The SME Instrument has a budget of around 3 billion Euros in grants until the year 2020. 38 www.theintelligentsme.com
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Intelligent SME
SME FINANCE
E
urope has a pulsating tissue of small businesses that are at the basis of the continent's technological innovation. 99% of all businesses in Europe are small and medium-sized enterprises (SMEs). Creativity, innovation and risk-taking abilities are clearly not missing as most of the highly innovative ideas and products that enter the market every day emanate from SMEs, making them the keystone of Europe's competitiveness. Still, compared to other parts of the world, like the US and Japan, SMEs in Europe struggle to get the cash flow needed to bring their brilliant ideas on the market, and to scale up. As the risk capital market fails to support them in this critical moment, small businesses are stuck in the "valley of death" that leads to many good prototypes and concepts being forsaken in the back drawer. With this in mind, we in the European Commission decided in 2014 to set up a new funding tool specifically targeted towards SMEs – the SME Instrument – as part of its Research and Innovation Framework Programme called Horizon 2020. The SME Instrument has a budget of around €3 billion in grants until the year 2020. We aim to identity and invest in small but highly innovative companies with a strong growth potential. As a return the companies create growth, investments, jobs and put fresh, innovative and useful technologies and products on the market. The programme has two phases – the first phase offers a grant of €50.000 to carry out a feasibility study and the second phase provides a grant up to €2.5 million (€5 million for medtech and red biotech projects) to bring the concept to market-maturity. As funding the companies is a good start but not sufficient, we offer them coaching services, training and support to commercialisation as part of the socalled phase 3 of the programme. Hundreds of companies we have selected have taken advantage of the funding as a springboard to grow and attract further investments, but to make our case we've chosen two to illustrate how this growth potential draws bigger and global investments. Ultrahaptics is a British company founded in 2013 based on technology originally developed at the University
of Bristol, UK. The technology that enables users to receive tactile feedback without needing to wear or touch anything. The technology uses ultrasound to project sensations through the air and directly onto the user. Users can ‘feel’ touchless buttons get feedback for midair gestures or interact with virtual objects. With this startling technology Ultrahaptics secured seed funding in 2014 and received in 2015 an SME instrument grant worth almost €1.5 million. These allowed for the further development of the technology and the expansion of the engineering team. To date the company has raised more than €14.2 million in private funding of which €12.6 million in a "Series A Round" of funding.
Inspiring cases show us that public funding of SMEs brings about more investments, more growth, more jobs and the return is manifold for them and for society at large."
Likewise, Dyadic, an Israeli company that develops solutions to online data breaches, has grown exponentially since they received a €2 million SME Instrument grant in October 2014. Dyadic delivers encryption and authentication services that are simple to use and don’t disrupt systems or workflows. Over the last years, the world has seen an unprecedented escalation in the number and size of data breaches, most due to hacking. The objective of Dyadic Security is to provide high security to organisations, and to protect digital assets, even in the event of a network breach. Since the grant with the SME Instrument, the company made a deal of $2million with a Japanese multinational which in turn resulted in an investment round with a private fund in Silicon Valley. These inspiring cases show us that public funding of SMEs brings about more investments, more growth, more jobs and the return is manifold for them and for society at large. New innovations, new technologies, new medicines, diagnosis tools, new sustainable energy systems in the end benefit us all – in addition of course to generating revenues for our businesses. Their growth potential is huge.
Bernd Reichert, Executive Agency for Small and Medium Sized Companies Brussels, Belgium.
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Intelligent SME
BUSINESS GOVERNANCE
Governance Challenge: Learn something valuable about your business
In order to succeed in business, it is necessary to first understand what makes successful businesses work. Successful businesses don’t just happen, they are MADE to happen and all effective and profitable businesses share three basic strengths, says Simon Hodges. 40 www.theintelligentsme.com
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BUSINESS GOVERNANCE
B
usinesses are established for the principal reason to obtain new customers and meet the needs of existing customers so as to make a profit. They do this by continually selling more things to more people at a higher profit margin that their competitors. However, it is a fact that many business owners end up being unable to create their expected value in the business and that is a shame. A large part of the reason for this is that it is really quite difficult to make the transition from managing a successful start up to leading a business that is capable of delivering sustainable growth. A start-up business requires the owner to oversee every aspect of the operations but as the business grows there reaches a point where to carry on in this way is no longer practical as the enlarged operation requires access to a range of skills to keep it working at the levels of performance to be able to consistently deliver the product or service to its customers. However, often this aspect of the development is put off until tomorrow as day to day issues come to dominate the thinking of the business leader. An organisation that is in such a situation can be identified as one where: the CEO is working seven days a week constantly dealing with issues that in their eyes should have been handled by other staff members; performance is inconsistent due to minor issues that continually go wrong; new sales are being achieved but somehow profits stubbornly refuse to grow; and the CEO feels that it is impossible to take their eye off their business even for one day. If one or more of these scenarios exist within an organisation; then it is likely that the problem lies with the way governance is set up rather than individual shortcomings. In these circumstances, allocating one hour to take an honest look at the way the business works can help identify the points made below. In order to succeed in business, it is necessary to first understand what makes successful businesses work. Successful businesses don’t just happen, they are MADE to happen and all effective and profitable businesses share three basic strengths: They are totally sales and profit oriented.
They sell quality products and services that someone actually wants to buy. They use effective people, processes and methods or in other words they establish appropriate governance systems This means that to be successful a business organisation needs to be set up to support two realities:
Reality No 1
Having a ‘great’ product or service alone will not achieve success. A ‘quality’ product or service marketed and delivered in a superior way WILL GUARANTEE short term success.
Reality No 2
The KEY to a sustainable and profitable business is to successfully implement effective innovation using systems and processes to deliver reality No 1 on a sustainable basis. The challenge for business owners is therefore to establish governance systems that consistently enable the business to:• Capture market share by winning new customers • Not lose existing customers by fulfilling their needs to grow customer loyalty. • Make a consistent and continuous effort towards improving the business. • Create a business that provides a fun and secure work environment. • Systemize and develop the business so that it will run and flourish on ‘autopilot’ – resulting in the owner being able to concentrate on the future of the business while maintaining control. • Ensure that the company complies with laws and regulations. To provide a focus for this activity it is necessary to put in place a strategy. Leaders often say that it is not necessary to have a strategy as “I know what I am doing.” Please remember a strategy is not for the leadership but for other stakeholders. This is because Increasingly, consumers want to buy/use products and services from companies they trust; suppliers want to form business partnerships with companies they can rely on; employees want to work for companies they respect; and investors want to support businesses that they see as having
Many business owners end up being unable to create their expected value in the business and that is a shame.It is quite difficult to make the transition from managing a start up to leading a business." a realistic plan and that are socially responsible. As such these groups need to understand the business and its aspirations Key performance indicators (KPIs’) must be established that encourage employees to act in a way that ensures the objectives in the plan are achieved rather than other a series of unrelated activities. Finally, for businesses that operate in the Middle East, where many are family owned and often it is not really appropriate to establish formal boards, it is vital that the owner employs someone with the necessary experience and has the gravitas to be able to gain the trust of the family to be in a position to review the plans and performance of the business and be given the remit to constructively challenge the management. This person is not a member of the executive team but will be able to undertake certain tasks such as negotiating a loan or buying a business. If you genuinely think your organisation is able to have access to the information to answer each of these questions, then everything is fine. If not, perhaps governance is not as irrelevant as was first thought.
Simon HODGES is a Chartered Secretary and a Member of the Institute of Chartered Secretaries and Administrators, the globally recognized and professional body for governance professionals.
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APRIL 2016
Intelligent SME
SOCIAL ADVANTAGE
Building customer relationships, one tweet at a time
As well as delivering content to help customers make purchase decisions, social media offers a powerful mechanism to deliver customised, post sales advice and support in real-time. The immediacy that Twitter provides means that organisations develop Twitter accounts specifically for this purpose, says Rodrigo Perez-Vega and Dr. Paul J Hopkinson.
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he landscape of Customer Relationship Management (CRM) has shifted markedly in recent years, fuelled by, amongst other things, developments in technology and the rapid expansion of social media platforms. Social media use among Internet users and businesses is now widespread. From an SME perspective, companies have looked at social media channels as a cost-effective marketing tool, and consequently many organisations,
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big and small, have jumped onto the social media bandwagon over the last decade. True, early social media platforms allowed businesses to market directly to their potential and current customers at almost zero financial cost, however with a push towards monetisation and changes in algorithms in many of the mainstream platforms is making this channel a more pay-to-play one. We propose that looking at social media not only as a marketing tool but also as a space
where companies and customers can build meaningful relationship is the way forward. Social CRM, as defined by Paul Greenberg, involves:
â€œâ€Ś engaging the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business
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SOCIAL ADVANTAGE environment. It's the company's response to customer's ownership of the conversation” Paul Greenberg (2010, p.34) ❶ Social media platforms provide companies with opportunities to engage with existing and prospective customers at every stage of the customer journey. As well as delivering content to help customers make purchase decisions, social media offers a powerful mechanism to deliver customised, post sales advice and support in real-time,❷ ❸. If handled well, this strengthens customer relationships leading to loyalty and advocacy. A 2015 report from Social Bakers found that 80% of the customer service requests happen on Twitter, the immediacy that this platform provides is leading big organisations to develop Twitter accounts specifically for this purpose (e.g. @HiltonSuggests, @RBS_ help, @SpotifyCares, etc.). The potential for customers to gain valuable advice not just from company representatives, but also other experienced users has been recognised by several companies, including Samsung and Apple2. This offers a useful mechanism for enhancing credibility and trust, vital ingredients in any relationship. In the UAE, a pioneer in this type of customer service is @EmiratesNBD, which allows its users to access banking services through this platform once their customers have passed a couple of security measures. For this bank, financial, technological, and human resources may not be a problem, but SMEs could also implement these type of services on social media. This may be of particular interest for those that do not have the financial resources to develop their own mobile applications to give information about products and handle orders or complaints. Providing customer service through social media can potentially be a source of competitive advantage vs.
other businesses that do not offer the service. This is particularly relevant for those businesses targeting millennials, as they prefer texting than calling when looking for customer support or product information. By monitoring social media activities (aka social listening) companies can also gain an insight into the effectiveness of their marketing campaigns (gauge sentiment), spot unaddressed market needs and even identify potential issues and problems before they impact their products and brands2, . Social media is not, however, a universal panacea and needs to be employed as part of an integrated marketing strategy which takes account of the various channels that customers use to interact with an organisation along the path to purchase and beyond. We have provided a few recommendations to help you rethink your social media activities in a more customer-centric manner: 1. The starting point for managing relationships successfully is to develop an understanding your customer's journey. Pinpoint the various touch points between your organisation and the customer along the path purchase and after purchase. This will help you to understand your customer’s channel preferences and identify the appropriate mix of social media and other platforms that you will need to engage them. 2. Integration is key: Ideally, communication between each channel and the customer at various stages in the customer journey should be captured and shared to personalise future interactions. Delivering consistent messages across platforms is key to building relationships successfully3. 3. Automation is not always necessary. Managing relationships with customers at a low scale can be manageable without the use of any particular software. Some social media channels (e.g. Facebook) already provide some basic tools that you can use to track past interactions with customers and add notes so that anyone else managing a fan page can
also access it and have a greater idea of what has happened in the past. However, as your company grows it may be sensible to explore the use of specialised social CRM software that can ease the task of managing thousands of daily interactions. 4. Develop a contingency plan. Whether you are or not on social media, some customers will get unsatisfied with your service. Pleasing everyone is impossible. Now this should not become a turn off from reaping the benefits of social CRM. Instead, consider designing a contingency plan that outlines how to react in all the possible situations and share it with anyone that will be interacting with your social media channels ❶ Greenberg, P (2010) CRM at the Speed of Light, Fourth Edition: Socual CRM Strategies, Tools and Techniques for Engaging Your Customers. ❷ Accenture (2010) Social CRM: The Frontier of Marketing, Sales and Service ❸ Deloitte (2015) Digital CRM: From traditional to individual;, contextaware, real-time customer interaction.
Dr Rodrigo PerezVega (@rpvega) is an Assistant Professor in Marketing at Heriot-Watt University. He is the Programme Director for the MSc in International Marketing Management with Digital Marketing at this institution. His research focuses on how to make branded social media presence more engaging for customers. Dr Paul J Hopkinson (@hopkinson67) is also an Assistant Professor in Marketing at Heriot-Watt University and Programme Director for the institution's MSc in International Business Management. His research interests are focused in the areas of Relationship Marketing, Customer Relationship Management and Channel Management.
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Intelligent SME
HYBRID MOTORING
Toyota Prius: the world's most popular hybrid 44 www.theintelligentsme.com
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Intelligent SME
HYBRID MOTORING
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l-Futtaim Motors, exclusive distributor of Toyota in the UAE, has officially launched the fourth generation Toyota Prius, the most popular hybrid vehicle in the world. First revealed at the 13th Dubai International Motor Show in November last year, the Toyota Prius was the world’s first mass-produced hybrid vehicle (petrol-electric) when initially launched in 1997, and has since sold over 3.5 million cars around the globe. Close to two decades on, the Toyota Prius brings with it groundbreaking environmentally-friendly performance, a bold new design, and a fun-to-drive spirit. The new Prius also features enhanced safety in a more compact package that is lighter in weight with world class aerodynamic, delivering an enhanced fuel efficiency of 26.1 Km/L. Saud Abbasi, Managing Director of Toyota at Al-Futtaim Motors, said: “Introducing the Toyota Prius in the UAE is a gigantic step forward in empowering the drive for a more sustainable environment. In line with the UAE Government’s vision for a greener future, Al-Futtaim Motors is proud to be leading the positive change with this new addition to the Toyota family. Converting the kinetic energy generated from braking into electricity, the car requires no external charging, making it one of the next immediate motoring solutions for the rising environmental issues in the region.” Employing a petrol engine and an electric motor, the Prius can be powered by the engine, the electric motor or a combination of both, automatically choosing the most efficient mode for the best mileage and lowest emissions. Abbasi added: “We predict that the 4th generation Prius, which now enjoys a bolder design, groundbreaking environmental performance, and a fun-to-drive spirit will appeal to young
trendsetters who want everything that is new and cool, with the added benefit of being environmentally ethical and brimming with technology that does not confuse.” The new Prius’ development concept is based on the idea of ‘Beautiful Hybrid’ and promises three forms of joys: Joy of Efficiency as the car achieves enhanced fuel economy, Joy of Ownership reflected by the emotional exterior design and powerful presence of the car, and the Joy of Driving which exemplifies its fun-to-drive spirit.
Sporty, low-slung stance and distinctive exterior The exterior of the all-new Prius hints at the car's advanced functions while also expressing its fun-to-drive spirit. The result is a distinctive outline that instils the next-generation halo eco-car with a unique presence while also being functional in ensuring ample head clearance for occupants. The fourth generation Prius retains the 2,700 mm wheelbase of the third generation Prius, but is 60 mm longer overall at 4,540 mm, 15 mm wider at 1,760 mm and 20mm lower.
An advanced and warm interior Staying true to the core concepts of the Prius, Toyota has produced an occupant-friendly interior that focuses on ease of use. Despite its compact appearance, the new Prius accommodates five people with ease, has increased boot capacity and now comes with towing facility, making it a car that can adapt to everybody’s modern life. The interior has a modern cockpit with soft-touch materials and cool metallic finishes in addition to innovative touches such as signature Prius logos on the air vents which create a cabin of contemporary flair. The instrument panel, with its thin, horizontal design and smooth
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Intelligent SME
HYBRID MOTORING
surfaces, consolidates operational areas near the driver and places information areas further away. The large colour Head-Up Display projects a range of important information – from driver alerts to navigation, speed and an energy meter – on to the windscreen in the driver’s line of sight. The Multi Information Display (MID) features an energy monitor which displays changing energy flows in conjunction with driving conditions. An ECO Accelerator Guidance will illuminate in accordance with a more eco-friendly use of the accelerator. The Prius also has a convenient wireless charging system which allows users to simply place a compatible device on the pad to initiate charging, without the need for a cable.
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Superb driving dynamics with remarkable results in terms of engine performance and fuel economy The Prius retains its 1.8-liter VVT-i equipped Atkinson cycle petrol engine (2ZR-FXE), which is perfectly for highway driving needs. However, the engine has been completely re-engineered, with remarkable results in terms of performance, fuel economy, and reductions to size and weight. The new engine achieves a maximum thermal efficiency of 40 percent―the world's highest level in a mass-produced gasoline engine (as of October 2015, according to in-house research). Key components of the hybrid system―including the motors, transaxle, power control unit and hybrid batteries―are now smaller and
lighter, improving fuel efficiency and making excellent use of space. Toyota New Global Architecture improves safety, performance and comfort, ensures a quiet drive The new Prius' centre of gravity is lower than the previous model, resulting in exceptional stability and minimal sway during driving. Through TNGA, body torsional rigidity has been improved by more than 60 percent compared with previous models, due to the use of Laser Screw Welding. Toyota has also developed an all-new double wishbone rear suspension for the Prius to provide new levels of handling stability and ride comfort, including a significant improvement in wheel-wheel impact shock damping. The rigidity of the body suppresses
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HYBRID MOTORING vibration and noise, while Laser Screw Welding allows for further noise elimination throughout the vehicle by decreasing the distance between welded joints. Advanced safety technologies as standard signify comprehensive protection for passengers The Prius sets high standards for safety with an impressive array of active and passive features that come as standard. These include 7 airbags to protect the driver and passengers, active front head restraints and Head Up Display. The Prius also features a Blind Spot Monitor (BSM) and Rear Cross Traffic Alert (RCTA) developed to warn the driver if there is a vehicle on either side when making a lane change. There are also 3-point front and
rear seatbelts with ELR (Emergency Locking Retractor), pretensioners and force limiters. The Electronically Controlled Brake System employs a newly developed active hydraulic booster. It also incorporates active safety features such as the Anti-lock Braking System (ABS), Vehicle Stability Control (VSC) and Traction Control (TRC). The brake system uses sensors to detect how much the driver is pressing the brake pedal in order to determine how much brake force is required by the driver. It fully utilizes the ability of the hybrid system to recover kinetic energy as electrical power, also known as ‘regenerative braking.’ The Prius also features a Tyre Pressure Warning System (TPWS) that
notifies the driver of low tyre pressure, both as standard, along with a Blind Spot Monitor (BSM) and Rear Cross Traffic Alert (RCTA) developed to warn the driver if there is a vehicle on either side when making a lane change. In order to make sustainable mobility available to those who would like to join the change, the new 2016 Toyota Prius will be offered in two grades, Dynamic model available at AED 89,900, and the Iconic model, available at AED 97,900 To follow the developments of the new Prius on social media, please use the hashtag #TheFutureIsNOW on our Facebook, Twitter and Instagram pages.
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Intelligent SME
SME World Summit 2016 Celeberating Entrepreneurship
SME World 2016 A Thumping Success After its successful 2014 & 2015 editions, SME World was back and was held in partnership with Dubai SME at Atlantis, The Palm Dubai, Conference Center, on 15th March 2016.
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n initiative of Intelligent SME, the SME World Summit 2016 witnessed the presence of high profile entrepreneurs, C-level executives, investors, government and the media. The event helped businesses develop new connections, gather critical leadership insights, improve perceptions and gain inspiration. A very large selection of distinguished guests gathered for the 3rd edition of the SME World Summit in 2016. This summit was the biggest congregation of business leaders, visionaries, and entrepreneurs, who shared their views on propelling the
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SME community to new heights. It provided a great knowledge platform for entrepreneurs and the opportunity to interact with the best business minds. The summit also showcased outstanding SME service providers ranging from technology to legal, real-estate all the way to insurance. These providers help improve business efficacy. Every business requires creativity and to stimulate creative minds, the summit presented the Art Expo where international as well as local artists showcased their work. In another creative highlight, two SMEs presented an exciting fashion show,
two designers with their interpretation of corporate summer fashion. The summit celebrated the hopes and ambitions of each entrepreneur who strives in the challenging environment to win the race. It cherished every innovative mind that seeks to bring change, every leader who aims to rise, and every investor willing to take risks to create value. Quality SME Service Providers, talented artists and painters, leading fashion designers, powerful keynotes, engaging panel discussions, strategic workshops and speed networking sessions drew over 3,000 attendees from the highest level of hierarchy in the industry.
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SME World Summit 2016 Celeberating Entrepreneurship
Welcome Remarks by Shantanu AP, CEO, SPI Group
Inaugural Speech by H.E. Abdul Baset Al Janahi, CEO, Dubai SME
SME World Summit has attracted over 8000 delegates over the last three years. This event is a grand celebration of entrepreneurship & a fitting tribute to successful entrepreneurs. Delivering his keynote at SME World 2016, H. E. Abdul Baset Al Janahi, CEO, Dubai SME elaborated on how the UAE's initiatives and actions are 'Enabling Global Ambitions,' for SMEs which was the theme of the summit. "Dubai was the first in the region to adopt a definition for SMEs and in Dubai SME, we are focusing on a variety of initiatives, to see entrepreneurial projects evolve from ideas to actual businesses, and then grow into global enterprises," he said, referring to initiatives such as Dubai SME100, which ranks top-performing SMEs in the UAE to enable them grow into globally competent enterprises. "Dubai realises its future is in creating a knowledgebased economy that sustains itself on innovation. And there is no better way to that future than investing in our SMEs, and enhancing the knowledge of people driving these enterprises," he added.
Declaring the Summit Open by H.E. Abdul Baset Al Janahi, CEO, Dubai SME
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Intelligent SME
SME World Summit 2016 Celeberating Entrepreneurship
Disruptive Entrepreneur Awards 2016: Acknowledging the next big thing in the regional business landscape JURY: Essam Disi, Director, Strategy & Policy, Dubai SME; Vikas Thapar, Head, Business Banking, Emirates NBD; Manu Nair, CEO, Emirates Chartered Accountants Group H.E. Abdul Baset Al Janahi, CEO, Dubai SME presented the Disruptive Entrepreneur Awards 2016 to six winning SMEs in two categories - Start-up and Established SME Business. WINNERS - Start-up Category: 1) Beehive, the UAE’s first Peer to Peer financing platform that has acquired over 3,000 clients in the last two years; 2) Load ME, the Uber of trucking with a network of 6,500
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trucks and the first transporters market in the Middle East; and 3) Travall, a first of its kind mobile app offering a video concierge to the city. Established SME Business Category: 1) IXTEL Technologies, a supplier of network services for converged infrastructures that has acquired 500 clients in the last 3 years; 2) RTS Global Partners, a family business advisory and professional services firm supporting hundreds of international clients in over 150 disciplines; and 3) Taka Solutions, an engineering and technology company that uses an innovative paid-from-savings business model to reduce energy consumption and carbon from buildings.
APRIL 2016
Intelligent SME
SME World Summit 2016 Celeberating Entrepreneurship Keynote 1: SMB Outliers: How are they Disrupting Established Business Models by John Lincoln, Senior Vice President, Small and Medium Businesses, Etisalat Keynote 2: Outlook on SME Development in the UAE by Dr. Raed Safadi, Executive Director, Economic Research & Policy Division, Dept. of Economic Development Keynote 3: How the Modern Workplace can Accelerate your Business Growth by Tareq Hijazi, Director - Small and Mid-market Solutions and Partners Group, Microsoft Gulf Panel Discussion 1: Dubai’s Economic Blueprint for 2021- What’s in it for SMEs? Moderator: Alexandar Williams, Director - Business Development, Department of Economic Development Panelists: Dr. Abdulaziz Istaitieh – Economic Advisor, The Executive Council, Dubai Government (TEC); Essam Disi – Director, Strategy & Policy, Dubai SME; Niraj Masand – Co-founder & Director, Banke International; Farah Aslam – Managing Director, Dimara International; Hans Henrik Christensen – Director, Dubai Technology Entrepreneur Centre, Dubai Silicon Oasis Authority Keynote 4: Thrive – accelerate your Digital Transformation Today! By Steve Cox, Vice President, Oracle Cloud Panel Discussion 2: Ignoring the Iceberg: What You Cannot See Can Hurt You? Moderator: Gavin D’Souza, Director & Practice Head, Xcellence Plus Panelists: Dr. Anand Menon - Strategic HR Director, Xcellence Plus; Dr. Premkumar Naidu - Vice President HR & Administration, Sobha LLC; Rajanikanth K – Leadership trainer, WINNWIN Leadership Academy; Akram Miknas - Chairman, Middle East Communications Network; Ahmed Embaby - Regional HR Director, Oracle MENA; Ratnesh Sharma, Group Chief HR officer – Aster DM Healthcare Keynote 5: The Horizon 2020 Instrument for Small & Medium Sized Enterprises - A Champions League for European Innovative SMEs by Dr. Bernd Reichert, Head of Unit, European Agency for SMEs Panel Discussion 3: How to Survive and Thrive in Turbulent Times - How to Beat the Odds? Moderator: Aziz Merchant, Director, Brandz Management Consultancy Panelists: Craig Moore – Founder & CEO, Beehive; Murthy.B.N – Chief Executive, Bloom Business Strategies FZE; Ajay Bindroo – CEO & Managing Partner, Clasico Brands; Michael Lahyani – Founder, Propertyfinder. ae; Satyajeet Roy, Head of Business Banking (SME) Commercial Bank International Panel Discussion 4: How to Create a Sustainable Competitive Advantage with Technology? Moderator: Dany El Eid, CEO, Pixelbug Panelists: Haider Salloum – Director, SMB Channel, Microsoft Gulf; Ryan Murdoch - Head of Data & Analytics, MENA & Emerging Markets, Starcom MediaVest Group; Jean-Luc Scherer - IoT Sales Engagement Lead, Engagement Practice Core & Cloud, Ericsson; Steve Cox, Vice President, Oracle Cloud Women Entrepreneurs Share their Success Stories - The Transformation Session facilitated by Sandi Saksena Cordelia Henry – UAE Franchisee, Referral Institute Dina Taji – CEO, TMF Dubai (Don’t Set Limitations) Anouk Pappers – Founder, CoolBrands (Thriving in an online Reputation Economy) Kimberly Miranda – Teen Entrepreneur & Fashion Designer ( Power of determination) Baran Abdallah – CEO, Beautiful Bee Group (Success is the Best revenge)
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S U C C E S S I S A D E S T I N AT I O N
H AV E YO U A R R I V E D ?
WATCHES YACHTS DESIGNER JEWELLERY BOUTIQUE REAL ESTATE GADGETS EXOTIC DESTINATIONS FINE DINING
APRIL 2016
Intelligent SME
Rare & Fabulous
Arabian Automobiles Company leads compact crossover segment Nissan Juke and X-Trail drive highest compact crossover demand in the UAE ARABIAN Automobiles Company – the flagship company of AW Rostamani Group and exclusive dealer for Nissan in Dubai and the Northern Emirates – has seen a remarkable 62% sales increase of its crossover models in 2015 while the segment has grown 18%. The Company has achieved market leadership in the compact crossover segment, with younger audiences buying more city-friendly vehicles like the Nissan Juke or X-Trail. With a premium and dynamic design, the X-Trail builds upon Nissan’s respected 4×4 heritage. It is a highly capable,
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modern crossover providing exceptional space and comfort. The option of two extra seats to make room for seven inside is unique for the category. The Nissan Juke delivers big with a higher ride, quicker response, stylish design, innovative allwheel -drive system that actually turns power into grip and distinct ability to turn heads. The compact crossover models’ starting prices range from AED 61,500 for the Nissan Juke and AED 84,000 for the Nissan X-Trail and are available at all Arabian Automobiles showrooms across Dubai and the Northern Emirates.
APRIL 2016
Intelligent SME
Rare & Fabulous
A rainbow of fragrances with Taif Al-Emarat Perfumes’ new collection
TAIF Al-Emarat Perfumes, a luxury perfumery that aims to excite with its dynamic elixirs, presents its special limited edition Rainbow collection of fragrances to capture the various colours of a woman’s persona. Named according to the number of the colours they correspond to, the Rainbow collection is an exquisite atelier of the most luxurious Oud essences one can possibly douse ones senses in. An earthy fragrance that simply entrances, the RO7 is a deep woody and spicy fragrance, starting out with spicy notes of saffron and ixora coccinea blended into rare Oud. The fragrance flourishes into sweet rose and vanilla, with a lingering scent of patchouli and beautiful praline behind.
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APRIL 2016
Intelligent SME
Rare & Fabulous
CITIZEN Eco-Drive One
The World’s Thinnest*1 Light-Powered Watch With A 1.00Mm Movement IT has been 40 years since CITIZEN invented the world's first analog quartz watch that uses light as a power source. We called this technology Eco-Drive*2 since it uses a renewable natural resource that anyone can access to generate its own electrical energy. Eco-Drive has evolved as one of our core technologies and serves as the foundation of our corporate philosophy of “crafting timepieces loved by citizens all over the world.” Eco-Drive One is the world's thinnest light-powered analog quartz watch with a 2.98mm case and 1.00 mm movement. Making it the ‘world's thinnest’ required redesigning almost every part of the movement, the structure of parts by using CITIZEN's most advanced processing techniques. The Eco-Drive technology has also improved. For example, in spite of its thinness, EcoDrive One runs 10 months on a single full charge by successfully reducing energy consumption. To create a watch with a case thickness of 2.98mm required the use of new materials. Materials that are both thin and strong. Materials that are malleable to form a beautiful silhouette that would hug the wrist but a material that would be strong enough to resist flexing.
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APRIL 2016
Intelligent SME
Rare & Fabulous
WEAR YOUR WILD SIDE EMERALDS and diamonds and sapphires! The natural world is a powerful source of inspiration and it is perfectly epitomised in La Marquise Jewellery’s hand crafted ‘Wilderness Collection’. The graceful leopard and the sleek snake’s movements are perfectly captured and accentuated with diamonds that are precisely placed to maximise their hue and brilliance. With pendants, earrings and rings that entwine diamonds and colourful gemstones mounted in custom settings, every piece reflects the wild nature of the collection. The stones are specifically chosen and matched to the design to delight the eye and ensure style at every moment. Nature lives in perfect harmony within the Wilderness Collection. While tortoises hide in palatial shells, parrots proudly show off their plumes of white and leopards parade their coats of yellow gold emblazoned with jewels. The sea of sparkling ice is enlivened by splashes of verdant green emeralds, crimson rubies and deep blue sapphires.
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