Intelligent SME Issue 27

Issue: 27 │ August - September 2015 Strategic SME Partner

Be Safe!

Be Insured!

Melina Argyriou, PCM, AIG Property Casualty, chats about the importance of insurance for the SMBs. [P-32]

SME Guru & A well-wisher!

H.E. Abdul Baset Al Janahi, CEO of Dubai SME shares his strategies for growth and development of the SME sector. [P-14]

Enabling SMBs to Grow: Etisalat

John Lincoln, Senior VP-SMB, Etisalat, talks about his journey in the telecom industry, which has changed and transformed the economy, especially the SMB sector in UAE. [P-18]

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OUR THINK TANK & MENTORS

Mentoring is a brain to pick, an ear to listen, and John C. Crosby a push in the right direction

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."

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 The company is now one of the leading car distributors in the world. In 2012, an AED 900 million expansion and investment programme was launched, which saw the opening of the world’s largest Audi new car showroom, one of the world’s largest Porsche Centers as well as new showrooms and after-sales centres in Sharjah and Fujairah. 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.

OUR THINK TANK & MENTORS

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.

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 14 SME Guru & A Well-Wisher!

In an interview with Intelligent SME, HE. Abdul Baset Al Janahi, CEO of Dubai SME shares his strategies for growth and development of the SME sector and embhasized on how Dubai SME encourages young entrepreneurs to venture in this territory and making UAE hub for small and medium businesses.

18 Enabling SMBs to Grow: Etisalat

John Lincoln, Senior Vice President - Small and Medium Businesses (SMB), Etisalat, talks about his journey in the telecom industry, which has dramatically changed in the past decade and transformed the economy, especially the SMB sector in UAE. In conversation with Editor Jinal Chheda of Intelligent SME.

22 Financial caretaker for SMEs

Vikas Thapar, Chief Executive Officer, Emirates Money in conversation with Intelligent SME, shares his enlightening ideas to support small and medium businesses in the UAE. His vision is to make finances easily accessible to SME sector for their business growth and development and making Emirates Money an end-to-end finance solutions provider for SME entrepreneurs in the UAE.

28 Head on to Desco and experience

happy printing!

Mr. Thomas, CEO and Mr. Siju Mathew, Vice President of DESCO Copy & Print Centre share with Jinal Chheda of Intelligent SME, their glorious journey of 28 years and their remarkable presence in the printing industry.

32 Be Safe! Be Insured!

Melina Argyriou, SME Package PCM, MENA, AIG Property Casualty, chats about the importance of insurance for the small and medium businesses with Intelligent SME. How it is important to make them aware about the risk involved in the business which can be ensured with right protection in the place.

34 Don’t wait! Just have your

insurance in place

In conversation with Intelligent SME, Michael Rafter, EVP Non-Life, Oman Insurance Company, shares his views on Insurance in the UAE and how important it is for everyone individual and the small and the medium businesses to be insured with the right policy.

36 Enterprise Insurance –

A primer for SMEs

Every SME business is focused on maximizing their growth opportunities and hence have their eyes firmly set on their products, customers or competition. At the same time, it is essential to realize that an unforeseen peril such as natural disasters, accidents and legal conflicts can lead to incapacitation of some of their strategic assets and wipe out all their years or effort.

August-September 2015

Contents

August-September 2015

42 It’s about risk management ‌

Not insurance!

Essam Disi in his article states that there should be a clear connection between risk mapping, business objectives and the key challenges faced by the business owner. Since, SME owners are more concerned with risks that may impact the profitability and growth of their business.

44 Insurance – An unrecognised

source of capital

This article looks at how SME businesses can use insurance as a part of their approach to properly finance their operations, while at the same time increase the possibility of acquirring the capital for growth by financiers.

48 Mind the GAP: Good books make for successful businesses

The inability, and sometimes unwillingness, of many SMEs to maintain proper books may lead to substantial difficulties and sometime even failure. There are compelling reasons for businesses to maintain proper records, good bookkeeping methods signal a better run business and garner easier finance.

Considering the ready availability of options, the time to start minding your books is now.

52 The SME Dilemma

Every year hundreds of studies/surveys reinforce the belief that developing soft skills is an essential ingredient contributing to the success of an organization. Surprisingly, the SME sector which employs 45% of the workforce in the UAE is on the edge with the argument. Do we wait till we grow to train our people or train them now so that we grow?

61 Rare & Fabulous

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EDITOR’S NOTE All businesses whether small or big need to function efficiently to face the day to day challenges and survive the cut-throat competition. Small business enterprises stick to the standards of corporate governance, employee wellbeing, accountability etc. Often they have to overcome the risks involved with fewer resources.

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Publisher & CEO Shantanu A.P. Account Director Vijay G. Editor Jinal Chheda Asst. Editor Audrey Fernandes Expert Contributors Abed Shaheen Craig Moore Essam Disi Gavin D’Souza Michael J. Tolan Neil Petch PK Menon Sachin Thombare

Salma El Shurafa & Veronique Ademar Sandi Saksena Simon Hodges Sudeep Nair

Art Director Aneesh Varghese Designer Retheesh Viswanath Web Developer Raj Shekar Reddy Project Coordinator Khushbu Ranjan Response and communications

Response Executive Sheila L. Ruga Distribution Department

Insurance is a form of risk management used to avoid uncertain loss. It is important for SMEs to realize that unforeseen threats such as natural disasters, accidents and legal fights can lead to disintegration of strategic assets and wipe out their long-term efforts. So it is necessary for SMEs to identify the potential risks and have an effective enterprise insurance strategy in place.

As I am aware that arranging insurance for SME businesses can be tedious but it is an essential task. SMEs would need a specialist to design their insurance cover as per their business requirements.

Different business verticals include different product lines and with the rise in claims over the past few years, it is a must to ensure that SMEs have the right protection in place.

The Intelligent SME August-September 2015 issue focuses on Enterprise Insurance and covers special features on different insurance verticals from our contributors which will guide you about the necessity of the insurance for fit and healthy business shelf-life.

The magazine carries a feature article by Sudeep Nair, Director at Cedar Management Consulting International LLC, on Enterprise Insurance – A Primer for SMEs. Also, an interview with Melina Argyriou, Head of SME (ME), AIG Insurance, who shares her insights on the importance of insurance for SMEs. There are many more informative articles from our experts on different insurance verticals.

Share your valuable feedback and informative articles at editor@ theintelligentsme.com

Jerry P. Sam

I hope you enjoy reading the magazine as much as we enjoyed putting it together for you.

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Disclaimer

SPI Publishing has endeavoured to bring out a publication that is reliable and informative. This is true to the best of our knowledge.

The opinions presented are those of individual writers and not necessarily endorsed by SPI Publishing. The content in this magazine is protected by copyright law and is copyright to SPI Publishing unless credited otherwise, and may not be copied, reproduced or republished for any commercial purpose or financial gain.

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August - September 2015

Intelligent SME

Business Announcements

Emirates NBD wins princess Haya Award for special education

E

mirates NBD, a leading bank in the region, today announced that it has been awarded the Princess Haya Award for Special Education (PHASE) for Corporate Social Responsibility in the Outstanding Institutional Supporter (Private Sector) category.

On behalf of the Executive Committee of The Princess Haya Award for Special Education, Certificate of Excellence presented to the bank’s Vice Chairman,

Hesham Abdulla Al Qassim, by Mohammad Al Emadi, Head of Executive Committee of the award.

The Princess Haya Award for Special Education honours excellence in special needs practices to enhance the overall services and performance in the area of special needs provision, encourage creativity, and acknowledge the role of special needs educators, therapists, management, caregivers, organisations, and companies.

Emirates NBD won the award in recognition of the bank’s continued

commitment in improving the lives of people with special needs.

Through Emirates NBD’s flagship program and social investment, PRIDE (People Receiving Independence and Dignity through Empowerment), the bank organises a range of initiatives, including the Smiles N Stuff Bazaar in partnership with Al Noor; Perspectives, an empowerment though art initiative; Online Donation Banking Channel; and a host of fun-filled activities with children during Autism Awareness Month in partnership with Autism Centers in Dubai, Abu Dhabi, and Sharjah.

Network International creates an e-commerce solution for SMEs

N

etwork International, the leading payment solutions provider in the Middle East, has partnered with Nexxus Payment Group, an international payment platform and Aramex to create NexxusPay, an end-to-end e-commerce solution for small and medium enterprises (SMEs) in the UAE.

NexxusPay is a customised and cost-effective one-stop platform for small businesses looking to venture into e-commerce. The solution comprises an online store and payment facility in a customer friendly interface, with a builtin logistics and transportation solution by Aramex.

Speaking about the new solution, Bhairav Trivedi, Chief Executive Officer, Network International, stated, “NexxusPay is a collaborative effort with like-minded partners to support small business owners in the UAE. We believe that offering these businesses cost efficient access to create an online presence will boost their reach and profitability, in

10 www.intelligentsme.com

addition to creating momentum in the UAE’s nascent e-commerce industry.”

NexxusPay can be integrated within the SME’s facebook or instagram page providing an all-inone interface that allows customers to make purchases online through a safe, secure payment gateway and receive invoices via email or SMS. The application significantly reduces set up time and cost, offering small business owners the flexibility to set up an e-store or sell via existing social media pages without the cost of additional collateral.Commenting on this initiative, Nebil Ben Aissa, CEO and Founder of NexxusPay said, “UAE SME owners face so much hardship operating and growing their business, and often do not have the time, resources, technology, expertise or funding to build an e-commerce solution on their own. The NexxusPay Platform in partnership with Network International and Aramex, enables SMEs to establish a professional low cost e-commerce presence to drive

incremental sales.”

Hussein Wehbe, UAE Country Manager at Aramex said: “Aramex has a long history of supporting SMEs and we recognise the potential of e-commerce in the region. Through our continual work with SMEs we know that access to customized solutions and logistical services are particularly important to drive development and growth. E-commerce in the UAE has huge potential for growth and our collaboration will offer SMEs an opportunity to further grow their business and also tap into new markets quickly and efficiently.”

Network International, in partnership with Nexxus, plans to roll out NexxusPay to its existing merchants in addition to other SMEs in the UAE looking to expand online. The company expects NexxusPay to catalyse the UAE’s burgeoning e-commerce sector, which is currently witnessing growth at a rate of over 20 percent annually. The United Arab Emirates is currently the largest e-commerce market in the Middle East.

August - September 2015

Intelligent SME

Business Announcements

ADCB expands its SME offer through “Purely Business” web portal

A

bu Dhabi Commercial Bank (ADCB) announced the launch of Purely Business, a web portal dedicated to supporting the small and medium-sized enterprise (SME) business community developing in the United Arab Emirates. Purely Business is a support network that provides knowledge, solutions and resources to help ambitious people develop their commercial venture.

Purely Business is accessible to all and contains interactive content and solutions for anyone looking to start or grow their business. The portal purelybusiness.ae will offer

expert knowledge on start-up and already established corporates requirements, money and people management, in addition to professional advice, solutions and tools.

Commenting on this launch, Martin Roussel, Head of Business Banking at ADCB, said: “ADCB has always sought to be a reliable partner to the SME community in the UAE by delivering innovative solutions and excellent service to its customers. The launch of Purely Business is a testament to the bank’s commitment to supporting the economic diversification in

the UAE. Enabling business ideas to flourish and facilitating the growth of SMEs is a core part of our strategy. Purely Business is seeking to become the go-to online resource for information, support and solutions for all entrepreneurs in the UAE and our hope is that it will help the country’s entrepreneurial spirit to grow stronger.”

ADCB’s Business Banking Division offers a wide-array of financial solutions to SMEs amongst others transactional accounts, trade finance and financing products.

Emirates NBD reveals its financial results in 2015 with SAP Disclosure Management

E

mirates NBD became the first bank in the UAE to generate its annual financial Statement in record time

Working with MDS ap, an exclusive partner on the SAP Business Analytics Portfolio of Products, Emirates NBD has generated its year-end financial statements 30% faster than the previous year, allowing it to manage critical disclosures and heighten trust and transparency for investors.

“Emirates NBD has reached a new level in terms of financial reporting maturity by removing manual processes that were prolonging the generation of quarterly and year-end financial statements. Leveraging SAP Disclosure Management allowed us to save time, avoid manual intervention and include last minute edits in the financial statements with a press of button.” said Surya Subramanian, Group CFO, Emirates NBD Bank PJSC.

Emirates NBD is the first bank in the UAE to adopt the SAP

Disclosure Management via MDS ap. Since its implementation, Emirates NBD has also used the software to generate part of its financial results announcement.

Tony Achkar, Managing Director, MDS ap Tech said: “New regulations on financial reporting are being consistently updated and very soon automation will become a necessity if banks want to minimize risk, time and cost associated with the disclosure process. By leveraging SAP Disclosure Management and assuming complete project ownership, Emirates NBD is driving UAE banking towards a global standard in financial compliance and adhering to their own corporate governance guidelines for accuracy and transparency in the ‘last mile’ of finance.”

By generating the report eight days faster than the previous year, the financial statements produced

by Emirates NBD could include last minute edits and staged approvals, together with report comparison and full or partial restoration of

previous versions.

“We are proud to support Emirates NBD with its drive to become more transparent and set an industry-wide example,” said Tayfun Topkoç, Managing Director, SAP UAE.

“Regulatory change is sweeping across the world, and Emirates NBD is not only ready but at the forefront of innovation adoption.

Rather than treating it as a challenge, the bank’s leadership is seeing this pressure as an opportunity to run more efficiently, deliver better value and to reach higher levels of achievement.”

SAP Disclosure Management, has also given the bank greater flexibility by allowing the integration of annual reports and corporate announcements that provide investors with relevant information and supporting data that can affect shareholder value.

Emirates NBD reported annual pre-impairment operating profit above AED 10 billion with net profit up 58% to AED 5.1 billion for the year ended 31 December 2014.

11 www.intelligentsme.com

August - September 2015

Intelligent SME

Get Informed

MoI supports international efforts in protecting children from abuse

T

he Higher Committee for Child Protection recently convened in order to discuss a number of issues relevant to the methods of child protection. The meeting, which was held at the headquarters of the Abu Dhabi Police General Headquarters (GHQ), was chaired by Major General Dr. Nasser Lakhrebani Al Nuaimi, Secretary General of the Office of HH Deputy Prime Minister and Minister of Interior and Chairman of the Higher Committee for Child Protection at the Ministry of Interior.

Discussions included the work and achievements of the Higher Committee’s subcommittees, along with the best ways to improve the provided services and realize the desired objectives.

The Secretary General emphasized the keenness of the Higher Committee for Child Protection at the Ministry of Interior to support local and international efforts and to ensure the protection of children from any attempt of abuse. This is in line with the directions of Lt. General HH Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior; and in support of his ongoing commitment to establish

the UAE as a radiating center of civilization, one that is a role model in the region for reinforcing child protection and safety.

The meeting that was held in the presence of members of the Higher Committee addressed a number of completed reports and action plans that are compatible with the current practices, and comply with the best international standards in the area of child protection. The participants also highlighted the mechanisms for strengthening coordination of joint action and overcoming obstacles in this area. They also called for pursuing, developing and improving the services provided for the protection of children from all types of risks.

It is worth mentioning that the Higher Committee for Child Protection was established in 2010 to provide opinion and advice on all issues relating to the rights and protection of children. The committee also proposes policies for child protection by the relevant authorities, and coordinates with entities working in the fields of child protection.

Source criança-feliz

12 www.intelligentsme.com

August - September 2015

Intelligent SME

Get Informed

Dubai an incubator for high growth SMEs, says HH Sheikh Hamdan Bin Mohammed Dubai SME begins second phase of screening SME100 participants in third cycle; HE Sami Al Qamzi: Dubai SME100 promotes SME performance and business in Dubai; Abdul Baset Al Janahi: 4,532 applicants in third cycle, revenues estimated at AED 69.5 billion

D

ubai SME, the agency of the Department of Economic Development (DED) in Dubai has announced that the third cycle of its Dubai SME100 ranking has now moved to the second stage, which involves field visits to 200 companies shortlisted from a total of 4,532 applicants.

Launched in 2011 under the patronage of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, the Dubai SME100 identifies and ranks companies based on a set of financial and non-financial performance indicators and then helps the ranked companies to acquire new capabilities and develop the business.

HH Sheikh Hamdan Bin Mohammed stated that Dubai has earned the distinction of being an incubator for high growth group of small and medium-sized companies, pursuing innovations in diverse fields. The Dubai SME100 ranking is proof of the support extended by the Government of Dubai and private sector partners for SME growth and a reaffirmation that Dubai will continue to roll out new business models and innovative global enterprises.

His Excellency Sami Al Qamzi, Director General of DED, said: "Small and medium enterprises represent 95% of the businesses operating in Dubai today and

account for about 42% of the total workforce and 40% of gross domestic product (GDP) of the emirate. This vital sector is a major source of innovations, products, and services as well as new markets and business models."

Al Qamzi added: “Dubai SME100 initiative aims to enhance overall SME performance in Dubai, which in turn will reflect positively on the economic landscape in the emirate, and we are delighted to see the initiative growing in strength in terms of the number of companies applying."

Abdul Baset Al Janahi, CEO of Dubai SME commented: “The SME sector is the central nerve of Dubai's economy providing flexibility, diversity and sustainability to the emirate’s business environment. The Government of Dubai has hence made this sector a top priority in its social and economic development agenda and a key pillar of Dubai’s regional and global competitiveness.”

The 4,532 companies, which registered in the third cycle of Dubai SME100 represented an increase of 49 % compared to the 3,041 companies registered in

2013. The companies registered in 2014 had a total revenue estimated at AED 69.5 billion and a workforce of around 144,000. The lion's share of the participants in 2014 – 57% came from the Services sector while 34.5% came from Trading and 8.4% from manufacturing.

Al Janahi added: "In the second phase, the 200 shortlisted companies will be evaluated on the basis of their financial performance over the last three years, with focus on cumulative growth in revenue and profits. The field visits are intended to evaluate the companies based on non-financial criteria such as innovation, human capital development, and corporate governance orientation in addition to corporate social responsibility standards, which was recently added in cooperation with the Dubai Chamber.”

Dubai SME has designed a development package for the SME100 companies in the 2015 cycle covering areas such as human capital, investment, corporate governance principles, and a selfassessment toolkits, in addition to providing legal support and introducing the ranked companies to concepts and methods of innovation.

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August - September 2015

Intelligent SME

A Close Encounter

SME Guru & A well-wisher!

In an interview with Intelligent SME, H.E. Abdul Baset Al Janahi, CEO of Dubai SME shares his strategies for growth and development of the SME sector and embhasized on how Dubai SME encourages young entrepreneurs to venture in this territory hereby UAE hub for small and medium businesses.

Q: What were the strategic

initiatives that were successfully launched by Dubai SME under your leadership?

Between 2002 and 2008 we launched a series of value added services to entrepreneurs that covered start-up subsidies, incubation, training, financing, and Government Procurement Programme. With our new mandate in 2009, we started launching larger scale initiatives aimed to establish a complete entrepreneurial ecosystem.

A major initiative in this regard was the official SME Definition articulated in 2009. By classifying small and medium enterprises on the basis of their performance and workforce the Dubai SME Definition helps entrepreneurs and their startups to access finance and partners required to move to the next level.

In 2010, Dubai SME launched Intelaq, a home-based business option that enables entrepreneurs to launch their business projects at minimal cost and risk. A number of entrepreneurs – especially women – have benefited from Intelaq as it allows a wider ground to take off and at the same time remain part of Dubai SME’s entrepreneurial support network.

Under the patronage of His Highness Sheikh Hamdan

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Bin Mohammed Bin Rashid AL Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, we launched the Dubai SME100 ranking in 2011 to identify the top-performing SMEs in Dubai and help them grow into bigger and more sustainable enterprises. Currently in its third cycle, the ranking has grown into a major driver of capability development, innovations and job creation in the SME sphere.

With a view to providing the necessary knowledge and education for entrepreneurs to step out confidently into the world of business and succeed, we launched the Dubai Entrepreneurship Academy in 2013. The Academy aims to fill the knowledge gap in the SME domain and sustain Dubai’s tradition of successful enterprise. Programmes offered by the Academy emphasise on critical skills, particularly those related to retailing and customer relations.

Last year, Dubai SME unveiled the Hamdan Innovation Incubator (Hi2), a complete support system to stimulate and foster innovative entrepreneurial ideas and projects.

Hi2 is the first and the largest of its kind hub that provides knowledge, guidance and support to ensure the uninterrupted growth of an entrepreneurial idea into a successful business.

The Dubai SME100 ranking was launched in line with our strategy to identify high potential SMEs based in Dubai – to groom them to become bigger, better and sustainable enterprises. We also have a special Export Preparation programme with our sister agency Dubai Exports to help potential exporters step beyond the UAE and expand regionally and globally

August - September 2015

Intelligent SME

A Close Encounter

Earlier this year, Dubai SME launched the Mohammed bin Rashid Fund for SME, a government initiative established by a law issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to maximise financing solutions for innovative businesses and developing Emirati entrepreneurs. Emirati nationals in the 21-65 age group can avail of two types of loans from the Fund: the Seed Capital Loan, offered directly to startups requiring funding of more than AED 50,000 but not exceeding AED 500,000, and the Credit Scheme Loan, offered through banking partners and guaranteed by the fund, to both startups and existing businesses requiring a funding of more than AED 500,000 but not exceeding AED 5 million.

Q: SMEs make up 75% of the

economy. So what are the new initiative Dubai SME will roll out in support, development and sustenance of SMEs this year and the next?

H.E. Abdul Baset Al Janahi,

Actually, according to our definition, SMEs in Dubai comprise up to 95% of the total business establishments, contribute 40% of the Gross Domestic Product, and constitute 42% of the labour force.

Dubai SME will continue to roll out initiatives and programmes required to fill gaps in the entrepreneurial support system in Dubai and position SMEs to benefit from the diversification and global aspirations of Dubai’s economic development strategy. We maintain an active interface with the SME community to understand their needs and conducts an SME Pulse exercise to collect sector feedback.

Simultaneously, we work with policy-makers to review existing policies and enhance them for improved SME outcomes.

CEO of Dubai SME

15 www.intelligentsme.com

August - September 2015

Intelligent SME

A Close Encounter

Q: People are sceptical to

establish an SME as it is a challenging path. How does Dubai SME encourage entrepreneurs to venture in this territory?

The interest among UAE nationals is growing exponentially in recent years. For example, in 2014, we have seen a 31% increase in number of new entrepreneurs approaching Dubai SME for various support services.

Some the challenges they face are the competition in the market, the changing regulatory requirements from different government entities that hinders new concepts and business models, in addition to some cultural challenges such as fear of failure and not accepting external advice, which are normal in any environment.

Therefore, Dubai SME takes a life cycle approach to SME development. From early stage seed start-ups to mature SMEs, Dubai SME has a variety of initiatives and services ranging from assisting new entrepreneurs start easily and facilitating access to business resources and market opportunities to focused growthoriented programmes for the top SMEs.

Below is a quick brief on some of the key programs and initiatives:

Development Advisory: Dubai SME has provided business development and advisory services to entrepreneurs and assisted in the launch of local businesses.

Business Incubation: The Business Incubation Centre helps entrepreneurs progress throughout the early stage of growth. The suite of services, which are tailored and continuously delivered, helps identify and remove obstacles and bottlenecks, and increase their survival rates.

Entrepreneur Relations (ER): Serves entrepreneurs by accelerating business start-up through a variety of services such

16 www.intelligentsme.com

as guidance on type of business, mode and category of business licensing, reducing business startup costs, and accessing reduced rate location real space.

Funding Support: Provide debt funding to address the challenges of the funding gap for start-ups and make capital available to them on a per-need basis.

Entrepreneurship Capability Development: The Dubai Entrepreneurship Academy offers practice-base Diplomas and short courses in entrepreneurship Development.

Young Entrepreneur Competition: The yearly competition challenges participants to create a pop-up business and manage it over four days in local malls throughout the city. Students get the opportunity to learn about business planning, product and service conceptualisation, marketing and customer service

Mohammed Bin Rashid Award for Young Business Leaders (YBL): The awards recognises outstanding business leaders in the Arab world who have shown creativity and perseverance to launch and develop their business.

Dubai SME100: In line with the strategy to groom promising SMEs, the Dubai SME 100 was launched to act as a platform and catalyst to identify high potential SMEs based in Dubai – to groom them to become bigger, better and sustainable enterprises

Q: As the CEO of Dubai SME,

how does your role enable you to get involved, engage and design strategies that stimulate economic stability in the SME sector?

As an agency of Dubai’s Department of Economic Development Dubai SME has a role in government strategy and programmes. We work with our entire stakeholders to support entrepreneurship development, enhance business-friendly policies. And promote a

customer-centric approach.

Q: Globalisation is the key

to unparalleled success. How is Dubai SME helping homegrown brands turn global and build a strong brand identity for UAE?

The Dubai SME100 ranking was launched in line with our strategy to identify high potential SMEs based in Dubai – to groom them to become bigger, better and sustainable enterprises. We also have a special Export Preparation programme with our sister agency Dubai Exports to help potential exporters step beyond the UAE and expand regionally and globally.

Q: What are the cornerstones

that need to be attained to transform Dubai into a global centre of innovation and excellence for SMEs?

With 2015 being the ‘Year of Innovation’ and recent trends in the online, cloud computing, social media and mobile technologies, there are tremendous opportunities for SMEs to offer innovative business models, products and services. Therefore, we expect that numbers of tech entrepreneurs will continue to grow in the coming years driven by various government initiatives and the Expo 2020 plans.

Various government entities in the UAE have launched special programmes and initiatives to support entrepreneurs in the tech space - Hi2, Silicon Oasis, in5, to name a few, in addition to R&D (Research & Development) support at Masdar and Khalifa University.

We constantly work with stakeholders, including the entrepreneurs to understand what they need and launch joint initiatives. Dubai SME cannot do it alone, and must have a responsive SME sector, in order to develop innovative support schemes that will transform Dubai into a global centre of innovation and excellence for SMEs.

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August - September 2015

Intelligent SME

SME Enablers

Enabling SMBs to Grow: Etisalat John Lincoln, Senior Vice President - Small and Medium Businesses (SMB), Etisalat, talks about his journey in the telecom industry, which has dramatically changed in the past decade and transformed the economy, especially the SMB sector in UAE. In conversation with Editor Jinal Chheda of Intelligent SME.

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August - September 2015

Intelligent SME

SME Enablers Q: How long have you

been associated with the telecommunications sector?

With abounding experience in telecommunications industry, share with us your outlook on the UAE market?

I have been associated with the telecommunications industry for over 25 years, with experience across continents. My journey started in the US, after which I moved to London, Japan, India, Brazil, Thailand and eventually made my way to Dubai. I’ve been working here for the last seven years.

UAE is one of the most dynamic markets in the world.

It has one of the fastest growth rates in the region, not only in the telecom sector, but business on the whole. In addition to this, UAE’s geographical location and administrative and regulatory climate are highly conducive to development, attracting businesses from across the region and the globe.

Etisalat is the region’s recognised leader in terms of network, technology and services.

We have rolled out the country’s largest fibre network, positioning the UAE as the most fibreconnected country in the world. We serve more SMBs than any other business does in the UAE

Running a business here is not only about serving people in the UAE, but reaching out to a population of approximately three billion within this region. UAE embodies dynamism, excitement, umpteen potential and has turned into a business hub for an entrepreneur wanting to conduct business in South East Asia, Middle East or Africa. UAE also manifests a confluence of markets and cultures such as the US, which is truly a blessing.

Q: The SMB sector majorly contributes to the UAE economy? How important is this segment for Etisalat and its overall business?

SMB’s are crucial part of the economy. It contributes around 60 per cent to the UAE’s GDP. Initiatives that better the SMBs, boost the economy. It is, therefore, not a coincidence that we coined our mantra ‘we help you grow your business’, reflecting our commitment to the country’s SMB sector.

Our efforts to help accelerate the growth of the segment is well aligned with the UAE government’s vision to encourage start-ups and entrepreneurship, making UAE the region’s hub for business growth.

It is an important segment, which Etisalat wants to nurture and support. By catering to their unique business needs, we truly want to become a business partner for SMBs.

Q: What plans does Etisalat have for SMB customers for the forthcoming years?

Digital is the future for the industry and especially for small and medium sized businesses.

Digitisation is not only about building websites and online tools. It means equipping SMBs to reach out to their customers on time, managing their employees effectively and streamlining suppliers and customer service. All

of this helps increase business productivity and importantly, profitability.

Telecommunication plays a critical role in helping businesses engage with their customer base, suppliers, employers, partners and the community in general. As the country’s leading telco, Etisalat aims to be the business partner of choice for SMBs, helping them achieve their short, mid and longterm business and digitisation goals. Our propositions are innovative and tailored to meet the unique needs of this segment.

We foresee the UAE becoming the leading global business hub across industries and market segments. Our aim at Etisalat is to transform the way SMBs conduct business and to make them highly competitive. Our ongoing efforts for this rapidly growing segment stem from our determination to support the nation’s vision toward making the UAE an IT-intensive SMB market globally. We are confident that with the direction of our country’s leadership, commitment from teammates, support of our customers and partners, we can make it happen.

Q: Etisalat considers itself the ‘business partner of choice’ for SMBs, how do you plan to achieve this and differentiate from competition?

Etisalat is the region’s recognised leader in terms of network, technology and services. We have rolled out the country’s largest fibre network, positioning the UAE as the most fibre-connected country in the world. We serve more SMBs than any other business does in the UAE.

We also understand the unique requirements of this sector.

Our specialised telecom and IT propositions for SMBs are designed to help them better manage their business costs and improve cash flow, while increasing productivity, efficiency and profitability. It caters

19 www.intelligentsme.com

August - September 2015

Intelligent SME

SME Enablers to their OPEX model and reduce burden on their CAPEX costs.

To boost business connectivity and communication, we carried out free broadband upgrades for over 100,000 customers up to 2.5 times their existing data speeds. In line with our overall strategy to provide tailor-made services and solutions to SMBs, we were the first telco in the region to introduce a dedicated call centre for SMB customers.

Etisalat has also established additional points of presence at our business centres and free trade zones across the UAE. We have over 100 dedicated account managers servicing medium sized businesses.

We have a strong network of business partners with over 500 sales executives reaching out to new and existing small businesses.

For our SMB customers, we are accessible anytime, anywhere, and this is what differentiates us in the telecom and IT market space.

Q: Etisalat has introduced specific services for the SMB sector, could you give us an insight on these services and how does it bring business benefits to the sector?

We believe that SMBs have three universal needs. First and foremost, SMBs look for value for money, which comprises of pricing transparency and creditability.

Secondly, cash flow is critical to start ups and established small businesses as well. They expect us to offer propositions that caters to their OPEX model rather than burdening the CAPEX costs.

Thirdly, SMBs value convenience.

Instead of figuring out which router offers optimum use, SMBs prefer focusing on their core competencies.

Unlike larger companies, SMBs are less proficient with managing the complexities of IT. Enterprises have a bigger IT infrastructure in place, employing professionals with specific skill sets to manage IT contingencies.

20 www.intelligentsme.com

‘Connect the Dots’ focuses on SMBs and comprises

the sum of my experiences in business around the world over the last 30 years.

Therefore, Etisalat aims to equip SMBs with the right tools to manage their IT infrastructure. For instance, in the past, businesses found it cumbersome to keep track of peak and off-peak calling rates, IDD and local rates. Adding to the challenge and costs were highend smart phones and devices for the employees. Our simple and targeted proposition, the Business Ultimate Plan, provides a pocket-friendly solution, allowing businesses to choose the most suitable mobile plan for as low as AED49 per month. The plan bundles local and international minutes, SMS and data allowance.

In addition, we have provisioned for SMBs to pay for the latest smartphones devices on easy monthly instalment basis.

Our recently launched Business Quick Start solution is an all-inone-solution to help businesses get started. It offers SMBs a cost effective bundle comprising a broadband connection, fixed voice, international and local

bundled minutes with the addition of devices for up to 10 employees. This can be paid on a monthly instalment basis. We have now extended our offering to provide SMBs with more than just basic computing. A range of high-end equipment such as printers, projectors, routers from world renowned brands and manufacturers are available at zero upfront cost and flexible instalment payment plans. We are, in fact, the only IT and telecom service provider in the UAE using this convenient all-in-one approach.

As network security gains precedence, Etisalat also offers software solutions to protect our customers’ network, providing data security and prohibiting unauthorised access to data. We are using our experience with large corporations, including government entities, for the benefit of our SMB customers in providing them with 24/7 monitoring and assistance.

August - September 2015

Intelligent SME

SME Enablers Q: How do you think the

enhanced Business Online Portal makes the life of a start-up, entrepreneur and an SME easy and manageable?

We have received a very positive response to our Business Online Portal, with customers calling in to provide their feedback. The portal has enhanced the way in which an SMB conducts business. It allows our customers to view their bills

Etisalat is the first in the region to have a dedicated SMB call center to serve the 300,000 small and medium businesses operating in the UAE

and payments. A business owner can log into the portal, track their company’s orders and manage all the branches and divisions with the click of a button. Costs can be easily allocated to a particular department and functioning details of that particular department can be reviewed. The Business Online Portal offers comprehensive capabilities to an SMB owner to manage business with us.

Q: Tell us about the ‘Hello Business’ service launched by Etisalat for SMBs in the UAE. Our first-of-its-kind ‘Hello Business’ initiative targets new businesses in the UAE. It is an on-boarding programme for businesses that seek assistance for setting up in this country. Among other benefits, the programme offers value-for-money propositions for mobile and office products and solutions. We provide our customers with an information kit that contains details of our SMB-tailored services and solutions and key contacts for faster, more efficient infrastructure set up.

Facilitated through our 24/7 SMBdedicated call centre 800 5800, business owners are guaranteed a personalised visit by a sales executive or assistance within 24 hours of placing a request or sending in a query. It’s our unique way of welcoming SMBs to the country and wishing “Marhaba” or “Hello” to businesses seeking a partner-of-choice in the UAE.

Q: What services does the dedicated call centre provide to SMEs and how quick is the response?

Etisalat is the first in the region to have a dedicated SMB call center to serve the 300,000 small and medium businesses operating in the UAE. Our agents are trained to handle queries so they can provide reasonable solutions to meet the specific needs of SMBs. In addition,

an outbound calling team keeps customers updated on special offers and new services.

Q: You have also written a book for entrepreneurs, could you give us some insight on the book ‘Connect the Dots’?

‘Connect the Dots’ focuses on SMBs and comprises the sum of my experiences in business around the world over the last 30 years.

I also ventured into my own business, which although unsuccessful, helped me learn from my entrepreneurial journey and geared me up for challenges in future. The book shares these learnings in the hope of providing useful tips, insights and innovative solutions to entrepreneurs and small and medium businesses.

One of the other objectives of writing this book was to educate SMBs on how to think big and be strategic in their business approach. Large companies have the resources to employ and work with consultancy firms to get the desired outcome, but SMBs are unable to do so. SMB owners are mostly opportunistic and tactical.

While they may invest heavily in the business itself, they often fail when it comes to implementing a strategic approach to ensure longterm success.

The book is a guide for SMBs on how to hire the right people. Other than basic academic qualifications and experience, emotional intelligence should be taken into account. For example, how do you market a product to women? Why is there a need to market to women? How can SMBs win the price war?

In my view, small and medium businesses are the engines of growth for any economy. They are risk-takers, but lack the recognition. They add value to the economy by creating abundant employment opportunities. My book is a tribute to them.

21 www.intelligentsme.com

August - September 2015

Intelligent SME

Exclusive Interview

Financial caretaker for SMEs Vikas Thapar, Chief Executive Officer, Emirates Money in conversation with Intelligent SME, shares his enlightening ideas to support small and medium businesses in the UAE. His vision is to make finances easily accessible to SME sector for their business growth and development and making Emirates Money an end-to-end finance solutions provider for SME entrepreneurs in the UAE. Q: Emirates Money has

recently forayed into Business Credit Cards? What is the rationale behind launching the new segment?

The introduction of the Business Credit Card is aimed at meeting the specific credit needs of SME entrepreneurs in the UAE. We believe that the newly launched proposition will add tremendous value for existing and new customers of Emirates Money.

This offering will also position Emirates Money as an end-to-end finance solutions provider for SME entrepreneurs in the UAE, leveraging the existing range of tailor-made solutions to meet all their financing and payment needs.

Q: The consumer finance

industry is a dynamic space.

Shed some light on your associations and journey in this industry.

22 www.intelligentsme.com

I have been associated with the customer and retail finance industry for almost 20 years now. I started my career in India, and through the years I have been exposed to several aspects of the business including credit, collections, sales, marketing, and branch management, and now as a business head managing the Business Banking portfolio at Emirates NBD, in addition to leading Emirates Money.

As you rightly said, the consumer finance industry is dynamic and to cope, one has to be nimble when it comes to strategy and execution. You need to respond to gaps in the current market

offerings, customer requirements and constantly look at ways to serve customers better.

In my experience, I have learnt that there is no set formula.

Organizations who try to follow the mould are unable to deliver effectively as they cannot connect all the dots between the various departments, from back-end to middle-office to front-end. To be successful, all units need to be aligned and in sync, else one can falter which can be disastrous for the entire organization.

August - September 2015

Intelligent SME

Exclusive Interview finance or a business credit card.

Emirates Money has been a pioneer in supporting growth in the SME segment and we continue to evolve our product offerings as well as expanding reach to the customers to support the SME and micro SME sectors

entrepreneurs in the UAE currently use multiple personal cards for their business expenses because the credit limit for personal credit cards is limited. Our card offering provides 75 per cent cash withdrawal facility of the credit card limit, in addition to 5 per cent cash back on local and international purchases, and cash back on spends on government related fee payments, hotels, utility bills and international travel.

Q: Emirates Money is touted

to be a distinct concept that caters to SMEs. How can SMEs benefit through this initiative

by Emirates NBD?

The distinct advantage of borrowing with Emirates Money is that we provide door step service with customized, flexible solutions. For example, if the funds are required for buying transportation or construction vehicles, then we are able to fund the customer at low interest rates and for loan amounts of up to AED 7 MN, while working capital requirements of the customer can be met by our flagship business loan product which is repayable in easy instalments over a period of up to 48 months. Another example is our unique product offering of loan against gold offers loans of up to 7 million at extremely attractive terms with free safe keeping of valuables.

The introduction a business credit card is in direct response to a gap in the market. Many

Q: You played a prominent

role in setting up the consumer finance business for Citigroup in Indonesia and have been an integral part of the team at Citigroup India.

Setting up business in two different countries has its own set of challenges, how did you cope with them?

Every market has its own challenges and sensitivities. My strategy has been very simple – study the market, understand customers’ requirements, analyse competition, identify gaps in the market and articulate a strategy and set of products, policies and a service platform best suited for our customers to make their lives simpler.

What I did in Indonesia and what I am doing here are two completely different business models. In Indonesia, our offerings were more suited towards a salaried, underserved market. In the UAE, the focus is more towards serving the financing needs of the micro-SME segment, be it vehicle

Q: Accessing finance is a

pre-requisite for a SME. How does Emirates Money aid in providing easy finance to a small and medium-sized enterprise?

Liquidity is the life line for any successful business. Access to funds, whether through securitizing assets or receivables or taking riskbased approach to loan pricing, is a critical element in the growth of the SME community. Emirates Money’s approach is to provide this liquidity in a flexible manner.

We provide flexibility through our range of products, for enhancing cash flows, we have unsecured business loans of up to AED 1.5 mn, while with security pf property or gold customers can borrow up to AED 7 mn at competitive interest rates & tenors.

Businesses can also hypothecate their receivables for loans of up to AED 5 mn. For purchase of business assets like vehicles, construction equipment or warehouse equipments, we offer high loan amounts at great terms, thereby freeing up the cash flows.

In addition, our newly introduced business credit card offers unique benefits which helps business owners in saving money as they conduct their business.

Customers can also convert their purchases into easy installments and Dial-a-Cheque facility is also available.

Emirates Money has and will continue to innovate customized products to cater to UAE’s vitally important SME sector. It also offers products within commercial vehicles and equipment lending, personal loans and a full range of banc assurance products.

Q: SMEs have been resorting

to alternative financing sources like crowd funding over banks. Do you think it’s an advantageous trend, given Emirates Money has been solely established to support SMEs? 23 www.intelligentsme.com

August - September 2015

Intelligent SME

Exclusive Interview Emirates Money has been a pioneer in supporting growth in the SME segment and we continue to evolve our product offerings as well as expanding reach to the customers to support the SME and micro SME sectors. Online platforms for peer to peer lending are complementary to the financial services industry.

However, as the industry grows, there remains some work on enforceability of the lender’s legal rights as well as process and time taken.

Q: Last year Emirates Money was named 'Best Non-Bank Consumer Finance Business’.

What are the new innovative solutions rolled out for this year? Why do you think it needs to be the preferred choice by SMEs?

Emirates Money has been a pioneer in supporting growth in the SME and micro SME segment and will continue to evolve its product offerings and expand its reach to customers.

A recent innovation is our business credit card, which has been designed especially for business owners. Card holders will benefit from a tailor-made range of features and offers that will also reward them for simply using the card for day to day business and personal transactions.

We are also planning a product to support growth in the used vehicles business. We have completed the technical feasibility study of this ‘first of its kind’ product and are currently working on putting the other components in place.

Q: How is the UAE consumer

financial market different from the Indian marketplace? What are the nitty-gritties that make a difference?

The UAE is a very different market from India with a completely different set of challenges. The differences can be divided into specific areas such as distribution, risk, collections, culture and

24 www.intelligentsme.com

customer demographics, and competition, among others.

India is a large and diverse geography, which is part of the reason why distribution expansion is a challenge in terms of cost, time and control. For the UAE, which is much smaller, you need to strike the right balance between extensive branch network and direct sales force, based on your business model and products.

With a population mix of 90% expats, the UAE poses a completely different risk to manage when compared to any other economy.

The customer acceptance criteria, underwriting norms and collections strategy has to take these challenges into consideration.

With more than 50 banks and 20 finance companies, the UAE is a busy market place for loans. Finding a niche and operating successfully without over leveraging the customers is always a challenge for any player.

encountered by SMEs while opening bank accounts, banks unilaterally close down some of the accounts despite the concerned enterprises maintaining sufficient balance with the bank. What are you views on this?

Q: In alignment with the Dubai

Q: What plans does Emirates

The SME sector is key to the economy of the country and is poised to play a vital role in the success of the DUBAI 2020 plan. In today’s fast paced world, majority of the companies in the region have adopted a factory line approach or rely on a very robust supply chain method. Even though most of the major contracts will be awarded to the prime players in the industry, for turnkey projects, the contractors and suppliers will ultimately be the SMEs. With vision Dubai 2020 gathering steam, the scope for SME growth is immense within the transportation, logistics, service sector and the trading sector. We foresee a spurt in the SME activity as we have witness an increasing number of SMEs either starting their operations or branches of various companies setting up shop in the region.

We recently launched the Emirates Money Business Credit Card which is tailored to suit the requirements of every business owner and aimed at helping the card holder to manage its business more efficiently. It offers a host of features such as 5% cashback on government, utilities, hotels and international spends, discounts on rent a car, recruitment and professional services, 75% cash withdrawal limit, complementary golf and airport lounge access, offers on dining, fitness and wellness centers and provides Business Protector Insurance

These unique features and benefits offered will empower the business owner to manage their operational cash flows and further fulfill their business needs. As mentioned earlier, we are also planning a product to support growth in the used vehicles business.

2020 plan, do you think the SME sector in the UAE will reach its prime as per the plan?

Q: There are various problems

Banks in the region provide extensive support to the SME sector as more and more banks set up departments specific to the SME segment. However, we have seen that while banks are promoting SMEs through an enhanced suite of products and services, there have been a few cases where some banks have had to close down certain accounts. However, every bank would have a prudent policy to intimate customers and provide ample time before the closure of the account. Banks reserve the right to close accounts from time to time based on internal policies but only after intimating account holders.

Money have in store for its consumers for the rest of the year?

Strategic SME Partner

Sole Automotive Partner

Innovation Partner

Global Innovation Summit 2015 KEYNOTES 1. Fostering innovation: disrupting the status quo 2. Benefits of aligning your corporate strategy with innovation 3. The role of research, development & collaboration in technology innovation 4. Enabling innovation in the UAE

ENGAGING PANEL DISCUSSIONS 1. How to build a world-class enterprise using innovation?

2. How disruptive technologies are enhancing our life and business?

3. How to make smart cities, even smarter?

4. What is the future of work?

Strategic SME Partner

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Suite No.503, 804, Wasl Business Central, P.O. Box: 122957, Dubai, UAE, Tel: +971 4 2500290, Fax: +971 4 2500291 accounts@emiratesca.com, www.emiratesca.com

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.

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.

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Strategic SME Partner

Sole Automotive Partner

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

Innovation Partner

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Strategic SME Partner

INNOVATION

AWARDS Inauguration of Innovation Awards and Keynote by

H.E. Sheikha Lubna Bint Khalid Al Qasimi Minister of International Cooperation & Development

August - September 2015

Intelligent SME

Entrepreneur in Focus

Head on to Desco and experience happy printing!

Mr. Siju Mathew, Vice President of DESCO Copy & Print Centre

Mr. Thomas, CEO and Mr. Siju Mathew, Vice President of DESCO Copy & Print Centre share with Jinal Chheda of Intelligent SME, their glorious journey of 28 years and their remarkable presence in the printing industry.

Q: Can you give us a brief

idea of the evolution of DESCO?

The company was established in 1987 as Draughting & Engineering Services Company in Abu Dhabi currently it is popular by its abbreviation DESCO. Mr. Thomas the CEO of the company started his journey as an architect who used to do manual drawings for

28 www.intelligentsme.com

the consultants. Later he slowly diverted his attention more towards plan printing. During those days, plotting a single drawing used to take 2 hours or more and required nonstop supervision and manual changing of plotter pens.

To print 10 drawings would mean supervising the machine non-stop for 24 hours.

As the years passed by DESCO is now fully equipped with most

modern computerized and digital infrastructure capable of handling print projects of large and medium volume with equal efficiency and high quality standards.

Q: How large is your print

network in the UAE region?

DESCO has the largest printing network in the UAE. With over 34 print centres strategically placed in UAE, DESCO has the most extensive

We offer our services to anyone and everyone whether big or small, company or individual.

August - September 2015

Intelligent SME

Entrepreneur in Focus

print network in the region apart from this every branch of DESCO is fully equipped to take any volume printing order. Our 34th outlet was inaugurated just last week which is located in Burj Salam, Trade Center 1, Dubai. There are more in the pipe line.

Q: What services does DESCO Copy & Print Centre provide to its clients and customers?

How is it superior from its competitors?

We have large format printing machines enabling us to handle jobs from various industries – keeping DESCO far above the rest in terms of turn-around time, quality and pricing. Probably DESCO is the only printing press who can handle large volume of digital or offset printing or copying tasks within the shortest time.

Some of our competitors outsource their orders to us due to lack of facilities.

We have a proved footfall of around 6500+ customers per day.

We have a large unit especially dedicated for offset printing and packaging orders. When it comes to post press, no other digital printing press in the region has as much as print finishing options as DESCO has. Today we are capable of doing 50,000 prints in a minute.

Our aim is to bring printing closer to our customer. We have branches that work 24/7 and some are open on Friday. By doing this we want customers to print according to their time and not accordingly to the print centre time. This facility of DESCO is highly appreciated among the architect students and plan consultants who work on their deadlines till late night and get their work printed before the submission the next day.

Q: What are the core values and philosophy of the company and what are your future goals?

DESCO believe in outstanding quality, extraordinary service standards and state of the art resources as key to customer

DESCO helps SMEs to create the right brand image to head start their business. We have business startup package especially designed for SMEs satisfaction and loyalty. We believe that customer feedback and acknowledgments are critical benchmarks for our efficiency and tools for improvement.

Founded in 1987 in Abu Dhabi, DESCO has now expanded to 34 print centres within in UAE, and are on a course to double our reach in the next few years to other parts of the region. DESCO aims to make it easier for our customers to find a “Desco Print Centre” near them.

been entitled by the most iconic projects in the UAE, including Dubai Metro, Burj Khalifa, Palm Jumeirah, Atlantis, Dubai & Abu Dhabi Airports and hundreds of other leading projects in the UAE and beyond. DESCO has catered to blue chip companies, individuals and government organisations.

We not only handle large volume orders in the region, but we also offer customised services to the individual clients.

Q: SME being one of the major sector of the UAE economy, what services do you offer your fellow SMEs? We offer our services to anyone and everyone whether big or small, company or individual. We treat everyone equal. Since UAE is all about SMEs, we have 90% of clients as small and medium enterprises.

DESCO helps SMEs to create the right brand image to head start their business. We have business start-up package especially designed for SMEs.

Q: Which are the iconic

projects completed by DESCO and its team? What type of customers do you attract?

Q: Do you have offers and discounted rates on your services to SMEs? Which is the most demandable printing service required by small and medium sized companies?

With our glorious track record in the print business, we have

We have designed ‘Start-up Package’ for SMEs and in that an

29 www.intelligentsme.com

August - September 2015

Intelligent SME

Entrepreneur in Focus paper, what CSR initiative do you undertake to protect and sustain the environment?

SME or a start-up company get everything they require to head start their business. DESCO Design Studio’s Business Start-up Package includes logo, business card, letter head, envelopes, invoice, receipt, brochure and all that are required for a business operation.

Q: What is your outlook onthe printing industry in the UAE? How DESCO survived during recession?

DESCO enjoys majority of portion in the UAE printing industry.

The recession of year 2000 badly affected printing presses, large and small, with a handful of them succumbing to the stroke. After recession period, there have been positive trends in the printing industry to grow and explore.

DESCO has been a consistent player in the printing business in UAE with a long legacy of more than 28 years now. Though marginal, DESCO also had its share of bad time during the recession. But the immediate strategy changes and management expertise drove DESCO out of the groove quickly.

Q: What do you think about

World Expo 2020? What are the business opportunities that may help DESCO and the printing industry to grow along the Expo?

After Milan, it is great to have next Expo 2020 in Dubai. His Highness Sheikh Mohammed’s vision has always resulted in growth of Dubai. Along with Dubai, all the enterprises grows along with it.

30 www.intelligentsme.com

Although it is too early to comment but we look forward to the World Expo 2020 as a great business opportunity, since there will be more companies coming up, there will be more printing requirement.

Q: With extensive use of

In comparison to offset printing, the new era digital printing effectively cuts down carbon emissions, reduces wastage drastically and saves lot of energy.

The digital print equipment’s are energy star compliant; it has energy saving modes and optimal energy consumption levels. DESCO has implemented environment conservation measures in its print centres and promotes recycled papers to its customers, equipment’s used by us are free of toners and heating elements to protect and sustain the environment. Thus we promote green printing.

Enterprise Insurance

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Knowing Insurance

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Risk Management

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Leadership Insurance

August - September 2015

Intelligent SME

Coverstory- Insurance

Be Safe!

Be Insured!

Melina Argyriou, SME Package PCM, MENA, AIG Property Casualty, chats about the importance of insurance for the small and medium businesses with Intelligent SME. How it is important to make them aware about the risk involved in the business which can be ensured with right protection in the place.

Q: Share with us your journey

in the Insurance sector. How long you have been associated with it?

I have been associated in insurance sector for many years. I kick-start my career with Aon Hellas as Senior Account Executive for seven years.

Then I joined AIG Greece (SME Package) as Assistant Profit Center Manger for three years followed

by AIG (American Home Assurance Company Dubai Br) (SME Package as Profit Center Manager) for three years.

Q: Tell us about your

experience in handling the insurance for the SME division.

What is it all about? Which regions you handle?

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A: The SME insurance segment

is a very challenging division and requires a lot of dedication.

Understanding the Small and Medium business needs is not an easy process as many would think.

All the more so considering that in the past SMEs have raised concerns

about the level of understanding of the market that insurance providers possess how they operate and their requirements.

As a result SMEs need from their insurance providers a clearly tailored and defined approach that aims to identify their needs and

August - September 2015

Intelligent SME

SMEs will continue to play a vital role in growing the local economy.

Insurance is a must for small and medium business and should always be at the top of the agenda. The world of risk management should not be a confusing area but an enabler

address them in the most efficient manner. In the last 6 years that I am involved in the SME segment, and bringing experience from Europe to Middle East, it is not a surprise to mention that the profile of an SME client is not so easily defined. Daily analysis of trends, frequencies, behaviours, claims, market, is what makes this role extremely interesting and fascinating. Through all the challenges and continuous research we can and have achieved delivery of great results and comprehensive solutions for the SME clients in the MENA Zone.

Q: What are the products and

services of Insurance offered in the SME division?

AIG has responded to clients’ needs through the development of tailored packaged solutions across 8 segments. Comprehensive market analysis was conducted to identify the most prominent risks faced by specific industry segments, enabling the company to design customised solutions

for Offices, Retail, F&B, Personal Care, Clinicare, Property Owners, Employee Protector and Educare.

As the first insurer in the UAE to launch an online platform for SME solutions, AIG is proud to be the pioneer in providing brokers and clients with increased efficient turnaround times and enhanced client servicing.

AIG has the most extensive range of products available online, offering 8 different products on a pre-underwritten basis. The platform provides unique, innovative tools, adding considerable value to brokers, including portfolio analysis information as well as reporting dashboards, enabling portfolio rather than account management.

Q: Why the insurance is

must for small and medium business? Does it keeps the business secured and smooth functioning. How frequently is it helpful to SMEs?

Insurance is a must for small and medium business and should always be at the top of the agenda.

The world of risk management should not be a confusing area but an enabler. Insurance risks are everywhere for SMEs and differ among the various sectors, such as food and beverage entities with perishable goods; injuries and liabilities to students in schools and nurseries; inland transit risks for retailers, machinery breakdown of high value medical equipment; and treatment services in beauty salons. Even the smallest incident can severely interrupt business daily operations and without appropriate insurance protection, an SME entity might not be able to start operating again. This why in AIG we believe that insurance is not about replacement or repair but it is about restoring your business.

Q: What do you think about

the growing importance of the Insurance sector in UAE?

SMEs currently represent approximately 75% of UAE companies and this figure will grow

Coverstory- Insurance soon considering the initiatives from the government around the promotion of the SME companies together with the evolution that the EXPO 2020 will bring in the market within the next years. With the right insurance protection, SMEs will continue to play a vital role in growing the local economy.

Q: What suggestions would

you like to give to our readers about the importance of the Insurance?

Insurance is available in order to help the companies to improve their bottom line. It should not be considered as an additional expense or as a luxury for more established companies or as an investment opportunity. Business must carry insurance to mitigate the risk of unforeseen damage and protect their balance sheets.

Protecting your people, your assets and your profit should be the first concern and consideration before starting a new business and while you are running it.

Q: Tell us about AIG Insurance and its presence. How it is different from other Insurance companies in UAE?

AIG is recognised as the SME market leader across the MENA countries mostly focusing in UAE, Qatar, Oman and India bringing a lot of experience from Europe and America as well. Its proposition delivers exceptional value to its clients in terms of coverage, automation, flexibility and claims service. It offers superior multiline, pre-underwritten, segmented solutions, which are delivered via an advanced online platform. In AIG we understand that SME clients require simple and straightforward processes when purchasing insurance, so they can focus on their core business. That’s why we have responded to client needs and developed a light touch approach, including single policy, single Q set and quote, single transaction, one payment, one renewal notice, one contact person and a service team for all policy queries and renewals.

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August - September 2015

Intelligent SME

The Insurance Talk

Don’t wait! Just have your insurance in place In conversation with Intelligent SME, Michael Rafter, EVP Non-Life, Oman Insurance Company, shares his views on Insurance in the UAE and how important it is for everyone individual and the small and the medium businesses to be insured with the right policy.

Q: Firstly, how important is insurance for SMEs?

According to Dubai SME, in terms of number of establishments, the SMEs account for 95% of enterprises in Dubai, 42% of the work force and 40% of the emirate's nominal GDP. Such numbers are a clear indicator of the importance of this sector and the implication of its success, or failure, to the economy.

Risk is an inherent part of business and while some may cause minor business interruption, others can cause irrevocable damage. It is important that SMEs know how to identify and evaluate the ones most critical to their business and take the necessary measures to prevent or control them. Insurance can step in as a risk transfer mechanism as it is an effective tool to help reduce the impact should any untoward incident occur. It can also assist the SME with business continuity, loss control or preventive measures and post-event recovery, adding immense value to the business operations.

Q: How can we make people aware of the details of their insurance cover and benefits, using it at the right time, the right policy and premium to be paid since many neglect the fine print?

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SME insurance can be a complex matter and there is no single solution that fits all, but with clarity on the risk to be covered and the right guidance from insurance experts, it need not be a staggering task.

Additionally, it is important to know your insurer, do they have a wide range of product capabilities, a broad industry capacity and effective service delivery? This is where insurance broker and consultants play a crucial role as they are knowledgeable on market conditions and available covers and can guide the SME accordingly.

Q: Why is insurance mandatory for small and medium businesses? How does it help SMEs keep their business focus?

Risk is a very intrinsic part of any business. Identifying, evaluating and managing business exposures is an extremely critical aspect of any business, as failure to do so can often impact operations and subsequently profit and growth plans. Insurance allows the SME to transfer this risk to the insurer and thus retain its business focus.

While there is a mandate for basic healthcare insurance for all business employees as of 2014, only certain Free Zones require other mandatory insurance covers.

SME insurance can be a complex matter and there is no single solution that fits all, but with clarity on the risk to be covered and the right guidance from insurance experts, it need not be a staggering task.

August - September 2015

Intelligent SME

The Insurance Talk

Q: What is ‘Business 360’ policy all about? How does it benefit SMEs?

SMEs in the UAE tend to underinsure their business risks, due to the complexity of multi contract insurance relationships, which are difficult to understand and to administer. Business 360 simplifies this necessary exercise, as it brings together all the key insurance covers into a simple solution. We’ve identified certain recurring risks that afflict SMEs and built standard covers to suit them. Additionally, Business 360 fulfills mandatory insurance requirements in certain UAE Free Zones, with the ability to issue Free Zone insurance certificates across various industries.

Q: What is a Multiline, Pre-underwritten Policy? Explain in detail about Group Medical, Motor Fleet, Property All Risk, and Liability?

To elaborate on a multiline, preunderwritten policy, we take an example of an average SME with a ten million dirhams turnover and employee strength of 50. A Business 360 policy can provide such an organization with standard medical covers for their staff, protection of their registered company vehicles, cover against property damage and even industry specific liability covers - all with one single policy certificate.

Our Group Medical cover offers practical medical insurance solutions with enhanced benefits like dental and maternity, plus the advantage of access to our wide network of healthcare providers.

A Group Motor Fleet policy protects all the company registered vehicles against physical damage and loss and also includes third party bodily injury liability.

The Property All Risk cover is designed as a comprehensive property cover, to protect physical assets like the office premises and its equipment and other contents against damage from accidents, fire and certain natural calamities.

We also cover liabilities like Public Liabilities, Workmen’s Compensation and Employer’s Liability.

Q: Can we take the SME insurance process online?

For the insurance intermediary there already exists online platforms, like what Business 360 presently offers. This allows for an online quick and smooth direct quotation and binding facility.

Mr. Michael Rafter, EVP Non-Life, Oman Insurance Company

35 www.intelligentsme.com

August - September 2015

Intelligent SME

Enterprise Insurance

Enterprise Insurance – A primer for SMEs Every SME business is focused on maximizing their growth opportunities and hence have their eyes firmly set on their products, customers or competition. At the same time, it is essential to realize that an unforeseen peril such as natural disasters, accidents and legal conflicts can lead to incapacitation of some of their strategic assets and wipe out all their years or effort. So it is critical for SME businesses to identify all the potential risks in their operating environment and design an effective Enterprise Insurance Strategy.

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D

esigning the Enterprise Insurance Strategy needs a level of expertise and understanding of insurance products that is difficult for SMEs to possess in-house.

Decisions on Enterprise Insurance are complicated by the following reasons: 1. Wide range of assets to be covered by insurance 2. Wide range of risks associated with those assets 3. Uncertainty of risks 4. Depreciation of assets which changes their intrinsic value 5. Changing mix of assets across years 6. Changes in the product-mix and value proposition of insurance companies 7. Tricky clauses in insurance contracts

Hence SMEs look for external advice

August - September 2015

Intelligent SME

Enterprise Insurance

SME businesses to be aware of the trends in Enterprise Insurance Industry, even if they don’t have deep understanding of all the products to make the right decisions on purchase of insurance policies.

Most of the SMEs rely on an Insurance Broker or Agent to inform and influence their purchasing decisions. This approach does not ensure a comprehensive approach to risk management because Agents (and at times, even Brokers who are meant to be independent) have hidden vested interests while advising their clients. Hence it is essential for SME businesses to be aware of the trends in Enterprise Insurance Industry, even if they don’t have deep understanding of all the products.

Trends in Insurance – the Supplier Perspective

The insurance market is awakening to the potential of the Small and Medium Enterprise Segment. Players across the value chain of insurance - underwriters, brokers, agents – are all realizing the growth that SME segment could offer them. There are several reasons for this increased focus on SMEs: • Large corporates have become more sophisticated in analyzing their insurance requirements, and hence a lot more demanding on their insurance providers • Large corporates typically have unique requirements, and hence insurance companies need sophisticated underwriting capabilities to serve them • Several large corporates have set up their own captive insurance

companies to conserve capital On the other hand, Insurance companies feel that selling to Small and Medium Enterprises has the following advantages: • Standardization - SMEs offer a market for standardized products • Retention - They are typically more “sticky” because they don’t invest the effort for evaluate options for switching over to other providers during every renewal cycle • Distribution – SMEs are less demanding on the need for dedicated Relationship Managers, and hence offer options for alterative distribution channels (e.g. internet)

Guidelines on Making Effective Enterprise Insurance Decisions Based on an understanding of insurance trends in their respective markets and a systematic analysis of their insurance requirements, SME businesses should pick the right type of coverage that suits their needs. The following approach can help them with their decisions:

Step 1: Prepare inventory of Assets

Every company has a number of tangible and intangible assets which need to be protected from risks. So the first step for any SME is to review their own asset portfolio. An illustrative set of assets to be reviewed is given below:

Tangible Assets

Intangible Assets

Office Buildings

Intellectual property

Factories

Business Continuity

Inventory

Brand Image

Machinery

Health & Safety of Employees

Vehicles

Reputation as an Employer

SMEs should inventorize these assets and assign a risk-weighted value to them.

Step 2: Determine Enterprise Insurance Strategy

For each category of assets the SME needs to review the appropriate type and level of cover. The approach for insurance will differ between Universal Products (which are industry-agnostic) and Specialized Products (which vary by type of Business).

Universal Products

Business-Specific Products

General Liability Insurance

Shop-owner’s policy

Property Insurance

Contractors’ insurance

Commercial Auto Insurance

Maritime insurance

Worker’s Compensation

Truck Equipment Insurance

Professional Liability Insurance

Caravan Insurance

Directors and Officers Insurance

Construction Equipment Insurance

Life Insurance

Chemical Hazards Insurance

Medical Insurance for Employees 37 www.intelligentsme.com

August - September 2015

Intelligent SME

Enterprise Insurance

Step 3: Purchase Insurance Policies

After determining the level of coverage required, the company should identify the right insurance products that would meet their needs. Typically in SMEs, decisions on purchase of Insurance are driven by the Finance teams. While the Finance Manager tends to be price-sensitive, it is critical to get inputs from other divisions. For example, Human Resources team should provide inputs on the right type of coverage and benefits for their employees. Business Divisions should review the policies for appropriate mitigation of operations risks. Legal team should be involved in reviewing the draft policy contracts offered by insurance companies.

While standardized products could be bought from insurance companies through direct channels (such as agents) without much negotiation, specialized products may require involvement of advisors (brokers). It is at this stage that a good understanding of the insurance market enables SMEs to have a meaningful negotiation with intermediaries. Discerning clients tend to get the right pricing and also succeed in getting the right type of contractual clauses included in the policies.

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SMEs, decisions on purchase of Insurance are driven by the Finance teams.

Step 4: Re-examine the portfolio periodically

The asset portfolio of an SME will evolve over time, and hence the Insurance Strategy needs to be re-evaluated periodically. The following factors may result in a change of insurance requirements: • Addition or exit of employees • Addition or removal of assets • Depreciation of assets • Change in operational value of some assets • Mergers & Acquisitions which change the asset mix • Change in business strategy resulting in new risk exposures SMEs should periodically review their insurance policies and ensure that provide comprehensive coverage.

Step 5: Evaluate the market offerings

and refine the mix of policies During every renewal period (typically at the end of every year), SMEs need to re-examine the product landscape and decide whether they should continue with the existing policies or switch over to other products. Several factors could lead to a change in product landscape • New products from insurance companies • Mergers and Acquisitions within the insurance industry • Changes in pricing structure of policies • Additional features added to products • Changes in support services provided by insurance companies • Regulatory changes that permit new product variations

Evolution of technology has resulted in easy availability of information on insurance products.

Subscribing to insurance journals and magazines can help the decision-maker remain abreast of the insurance landscape, rather than having to depend solely on external advisors for the crucial function of protecting their strategic assets.

Sudeep Nair is a Director at Cedar Management Consulting International LLC, a US based management consulting firm. Sudeep has over 15 years of international experience (USA, UK, Continental Europe & India) in Business Transformation of Banks and Insurance Companies, and is a recognized expert in delivering significant improvements for businesses across Organization, Process and Technology. He can be reached at Sudeep.Nair@cedar-consulting.com

August - September 2015

Intelligent SME

Knowing Insurance

Risk and reward for SMEs in the UAE The fact that growth profitability and minimizing the risk is the very least that SMEs want, but all they face is commercial and political risks that are beyond your control. SMEs should to have appropriate insurance that can mitigate risks, protect cash flow and provide a stable foundation for your long-term success.

T

he small and medium enterprises forms the central nerve of the UAE economy, SME’s contribute an estimated of 40% of GDP in Dubai and more than 60% of UAE’s GDP. Insurance companies both local and international are creating and adapting products that offer protection to the SMEs in the UAE as they become more sophisticated international in their businesses. SMEs in the UAE are overlooking even the key risks to their business such as fire and supply chain disruption this is confirmed by the 2014 Global SME Survey by global insurer Zurich and Dubai SME. The 2014 Global SME Survey which included 200 senior executives in the UAE, who were asked to rank the top three risks faced by their businesses.

Here are the facts - the survey found that only about 1 in 10 SMEs in the UAE (11%) believe fire to be a major risk! Yes, despite regular reports of fires destroying business premises and high-rise buildings across the country. Just 8% view the failure of partners and suppliers as a risk to their business.

As opposed to their global counterparts UAE SME owners are more concerned with risks that may impact the profitability of their business, 33% cite high competition as a key risk, while

40 www.intelligentsme.com

20% are concerned about weak consumer demand. Legal and fiscal rank third at 16% among the biggest risks listed by SMEs in the UAE.

According to Abdul Baset Al Janahi, Chief Executive Officer, Mohammed Bin Rashid Establishment for SMEs (Dubai SME) “The survey reveals that UAE SMEs need to seriously address gaps in their exposure to risk, SMEs that understand business risks and take measures to protect their businesses tend to benefit in the long term. While our SMEs are generally doing well, they should not take their business growth for granted.”

Other risks that SMEs in the UAE underestimate include the health and safety of customers or

Insurance providers should inform/educate the SME owners on insurance and risk management, covering both general and life insurance contracts

employees, which only concerns 14% of business. Cybercrime, damage to company vehicles and natural catastrophes / unpredictable weather have significantly grown as a perceived risk.

Running a business is risky, you the SME entrepreneur often invest your own money, time, talent and energy to realize your dream of owning and managing your own business. Having the appropriate insurance can mitigate the risks, protect cash flow and provide a stable foundation for your longterm success.

According to Eva Sayegh,

Manager of Specialty Lines at Dubai Insurance Company PSC,

the first local insurance company formed in the UAE in 1970. “We have products which assist in funding businesses by securing their receivables and thus also strengthening the balance sheet.

The Product Portfolio include; Trade Credit Insurance –Excess of Loss or Single Name, Loan Guarantees and Bid/Advance Payment /Performance Bonds for applicable projects”.

She says, “For those looking for capital injection, strong financial statements/balance sheets will increase interest and commitment of potential investors, or financial institutions to invest or extend credit. More often than not,

August - September 2015

Intelligent SME

Knowing Insurance

monetarily, the benefits far exceed the cost of the premium”.

Further elaborating on DIC’s products Eva says, “Market studies indicate that many investors and venture capitalists now aim to transform the business that they put their money in from limited liability into publically listed company or seek mergers and/ or acquisitions. In these cases our other products/ policies which smooth and ease the transactions are POSI (Public Offering Securities Insurance) for IPO situations, and warranty & indemnity for mergers and acquisitions.

Also, as most SME businesses are online or involving online services topped by new technologies, Eva stresses the danger of Cyber Risks and says developing an effective strategy of prevention, preparation, and protection to mitigate losses from a variety of cyber incidents including data breaches, business interruption, cost of crisis management, public relations, cyber extortion, loss of data asset are essential to the investors/ lenders. DIC’s Global Breach Solution Policy response and give assurance of cyber protection.

Lastly, Eva recommends

having an Errors and Omissions insurance coverage especially for those in advisory, consultative roles to be an integral part of protection your business. For us less informed, DIC’s E&O policies aka Miscellaneous Professional Indemnity Insurance is available for all professions including consultants, layers & solicitors, teachers, IT developers, designers, programmers, trainer, translation services, tour agencies, hotel consultancy, arbitrators court experts, medical clinics and all their practitioners etc.

A financial loss caused by E & O alleges failure to perform wrongful acts, defense cost, breach of confidentiality and others. Accusations of negligence or the failure to perform your professional services are the areas where these policies can defend your business against negligence, made by your client and any damages awarded in case of incurred loss.

As SME expand and take on more stakeholders Directors and Officers Liability Insurance in addition to the D & O policy and the combination of Professional Indemnity (PI) in its forms acts as a solid protection for business

and decision makers and it works as an asset. Any financial losses resulting from Directors/ Owners of the business or that clients are protected/covered will encourage and boost the appetite of investors.

The market continues to morph, the role of the insurance providers is constant analysis of the evolution of the risks, change in regulations, and verifying on a regular basis, the fulfillment of customer needs.

All Insurance terms and conditions are legally worded and have a specific interpretation in law. Some are quite complex, it is essential to understand what you are not covered or liable for. It is the responsibility of the Insurance providers to inform/educate the SME owners on insurance and risk management, covering both general and life insurance contracts are governed by the principle of utmost good faith which requires both parties of the insurance contract to deal in good faith and in particular it imparts on the insured a duty to disclose all material facts which relate to the risk to be covered. This contrasts with the legal doctrine that covers most other types of contracts!

Sandi Saksenadevotes her time and energies to her job in Personal Financial Planning. She is the first and only female sales manager and leads an all-female team of financial counsellors at Nexus Insurance Brokers.

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August - September 2015

Intelligent SME

Risk Management

It’s about risk management ‌ Not insurance!

Essam Disi in his article states that there should be a clear connection between risk mapping, business objectives and the key challenges faced by the business owner.

Since, SME owners are more concerned with risks that may impact the profitability and growth of their business.

R

unning a business has always been a matter of risk taking, I cannot imagine any business can grow and prosper being completely risk-averse.

However, successful SMEowners must actively manage risk.

In many cases, I’ve noticed that

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business owners tend to have an instinctive understanding of the more common risks they face, and will have taken mitigating action, sometimes without even realizing it! But, it is still useful to formally and systematically review the risks facing the company, particularly when evaluating new projects or

investments. In addition, high growth companies should carry out this exercise more frequently as they are likely to be facing a new set of risks as they expand.

Therefore, risk management has been identified as one of the key pillars of the Dubai SME Corporate Governance framework.

August - September 2015

Intelligent SME

Risk Management

We all know that SMEs represent around 95% of registered businesses in Dubai and employ more than 42% of Dubai’s workforce. Therefore, it is clear that SMEs are the real drivers of economic growth, and hence, supporting their sustainability is a significant strategic objective

Of course, there are many approaches to manage risk and insurance is one of them.

In the last 5 years, I cannot remember the times I’ve heard insurance experts and brokers complaining about the low penetration of insurance among SMEs in Dubai. Many of them keep addressing the issue, but a lot of them believe that the solution is to make SME insurance a compulsory requirement by the government.

The thought process here is, if it worked with cars and will work with health insurance, then why shouldn’t it work with SMEs?

Well it shouldn’t, because understanding the SME sector is quite far complex and there are many other pieces in the business ecosystem that need to be addressed before considering any decision in that direction

We all know that SMEs represent around 95% of registered businesses in Dubai and employ more than 42% of Dubai’s workforce. Therefore, it is clear that SMEs are the real drivers of economic growth, and hence, supporting their sustainability is a significant strategic objective.

On the other hand, this also shows the huge opportunity in front of service providers to target the SME market.

In order to do this properly, the different players in the ecosystem should tackle this issue from the SME’s point of view.

As “Corporate Governance” was simplified for SMEs to comprehend in a practical way, the concept of “Risk Management” should be emphasized as a way to create value instead of being defined in negative terms.

To do this, we cannot deal with SMEs as if they are shrunken down versions of large corporations.

We should always consider the maturity level of the SME and the phase of its life cycle. In addition to the other parameters of industry, activities, and size.

When SME owners start their companies, they usually control all the vital processes within the company. However, SMEs typically grow to a point where the owners can no longer make all the operational decisions and it is crucial at this stage that proper controls are put in place.

Therefore, SME owners need someone to assist them in identifying, mapping, and prioritizing the risks of the business, then guide them on the choices they have to develop their risk management strategy: • Avoiding risk - choosing not to undertake a certain activity • Transferring risk - which is typically done with insurance, outsourcing, etc.

• Reducing risk – introducing new mitigating measures and controls • Accepting risk - in cases, the cost of mitigating a potential risk may be so high that doing nothing

makes more business sense.

In addition, there should be a clear connection between the risk mapping, business objectives and the key challenges faced by the business owner. Since SME owners are more concerned with risks that may impact the profitability and growth of their business.

If we take a look at a recent survey conducted by Dubai SME and answered by around 500 SME owners in Dubai, the top 5 challenges that were highlighted were: Competition, High cost of rental/leasing, Demand/market conditions, Overhead expenses, and Delay in Payments/Receivables.

Therefore, experts should understand the pains of SME owners in order to give an objective view on the actual risks to the company and then advice on how to develop a risk management strategy, even if it doesn’t include buying an insurance policy!

I believe that we should all admit that there are huge trust, awareness and education gaps that all stakeholders should collaborate to bridge. Having a long list of SME insurance products is not the solution.

Essam Disi is the Director of Strategy and Policy at Dubai SME, a government agency under the Dubai Department of Economic Development, tasked with the development of Entrepreneurship and Small & Medium Enterprises (SMEs) in Dubai. In his present job, his main roles and responsibilities are to formulate long-term plans, strategies and policy support framework for SME development, in addition to executing strategic initiatives to support the SME sector and Entrepreneurial Ecosystem in Dubai.

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August - September 2015

Intelligent SME

Knowing Insurance

Insurance – An unrecognised source of capital This article looks at how SME businesses can use insurance as a part of their approach to properly finance their operations, while at the same time increase the possibility of acquirring the capital for growth by financiers.

I

nsurance is one of those aspects of business that almost everyone recognises the need to purchase it but more often than not feel it is something that can be put off until tomorrow or purchased at the cheapest price because it is fulfilling a regulatory requirement.

However, if that approach is adopted, owners, financiers and investors will have accepted that they might lose an income earning asset due to a non-trading event, which they will need to fund a replacement. Even if this is not understood, these individuals may only be prepared to advance limited funds because they are uncertain about the ability of the business to repay the amount lent.

I was in charge of insurance arrangements for large companies, which included two FTSE 200 companies in the UK together with The Jumeirah Group, Dubai Holding and ADNEC in the UAE. During this time significant insurance claims were made following a loss of an asset due to an insurable risk and these were paid out in full enabling the businesses to trade normally during what were very difficult times.

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Intelligent SME

Knowing Insurance

Therefore for me, insurance has played a critical part in ensuring that capital was made available at a time it was most needed.

Principals of Insurance

The principal behind most reputable insurance policies is to put the policy holder back to the position it was the moment before an insurable event happened.

An insurable event is one that typically is not controllable by the beneficiary such as a fire or storm.

The development of the insurance market in London in the 17th Century was one of the principal reasons why the industrial revolution was such a success because it encouraged financiers to fund projects as it removed the fear of losing their investment following the loss of an insured asset such as a ship or factory. Insurance proceeds were therefore seen as a way investors could at least recover their investment at a time when the business was not in a position to repay them.

What do business insurances cover?

Business insurance can generally be divided into two areas. First, insurances relating to the loss of an asset and second insurances relating to a claim from a third party against the business.

Whichever area is covered an insurance policy will only meet a claim following the occurrence of an insurable event.

Insurable events occur in certain circumstances. The event must create a definite loss which means that the loss takes place at a known time, known place and from a known cause. In addition, the event causing the loss must normally be outside the control of the beneficiary. The financial effects on the business from the results of such a loss should be large enough to make it difficult to finance using internal resources Therefore as a sweeping generalisation, asset (or property)

insurance is of most use where a business operates out of a property or uses trucks or ships to transport their goods. While liability insurance is used in circumstances where third parties rely on the skills of the business when using their products or services and they are likely to suffer financially if those skills are poorly executed by the provider.

Thinking about insurance as a source of capital

Today, generally insurance is often seen as an unnecessary expense or it is purchased as a compliance requirement. In addition, because most of the experiences with the insurance industry are with the purchase of domestic policies such as car or home insurance arrangement where the cover meets regulatory requirements, price has become the most important aspect.

However, for most trading businesses that have got past the start-up phase, they will have a lot of their revenues dependent on the use of a property and the loss of that asset and the contents due to a fire, which is a fairly common occurrence in the UAE, would be very difficult to replace without having to obtain additional finance.

In these circumstances, it is often difficult to raise this amount of money because monies have already been borrowed against the use of that asset either through a mortgage or for the original purchase of the stock and the lenders will look for repayment prospects before considering making further loans. Therefore, at a time of crises the capital markets can become locked to the business thereby threatening its survival.

Having in place the right insurances will provide a reliable source of capital to the business.

Because the timing of an insurable event is uncertain, it would seem sensible that some consideration is given when buying the insurance policy as to whether the company

has the necessary capital to make the payment of a claim in a timely fashion. Therefore evaluating an insurance company in the same way as normal sources of finance is a very important action to take.

Other benefits provided by insurance

Insurance is used to finance losses arising out of an insurable risk. Therefore as an industry, insurance companies understand those risks better than individual businesses. Finding the correct broker and insurance partner, helps businesses put in place cost effective controls that can reduce the risk of an insurance event.

For example the fixing of a lightning conductor on a tall building can prevent damage to the building from a lightning strike. For those that do not think it will happen to them, there are numerous pictures of lightening striking the Burj Al Arab.

Furthermore, having a reputable insurance policy in place gives confidence to third party financiers that their investment can be secured in the event of a loss and that the owners are serious about looking after their assets. This helps them in having confidence about ensuring the repayment of the monies, which is the single most important goal of an investment partner.

Simon is a Chartered Secretary and a Member of the Institute of Chartered Secretaries and Administrators, the globally recognized and professional body for governance professionals. He has 30 years of experience at Board level working for international publically traded and privately held companies headquartered in Abu Dhabi, Dubai, 45 www.intelligentsme.com

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Intelligent SME

Leadership Insurance

Leadership Insuranceprotection for business owners One of the simple and effective tool for leaders is The Leadership Insurance Policy. This smart leadership practice, which may be adopted by anyone in a leadership position, will go a long way to protect the organization by building and strengthening the people holding up the tent.

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he latest employee retention and loyalty program, The Leadership Insurance Policy, is insuring a small growing market share of business owners. Sadly for the many of the business owners not covered, doom could soon be in their business forecast. The highly effective and logical policy covers owners for any unforeseen or planned absences that pull them away from their business and therefore are unable to supervise and drive the business in that particular moment.

After all, it is often said that:

“The test of true leadership effectiveness is what ‘really happens when you are not there.�As many businesses are the brainchild of the founder, who often remains at the helm, it is essential that they have this special coverage available to them to set the business on autopilot when they are away, and to use the benefits of the policy when they are back at the shop floor.The Leadership Insurance Policy is a practice of very specific and targeted behaviors that leaders may deploy both offensively and defensively to build a fortress of dignity within their organizationWithout this, companies risk losing revenue, new clients and for certain, their most precious assets, their team members. Open up a newspaper or visit any online social media to understand the dangerous highway that employees take everyday either

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“Loyalty is the emotional and moral repayment of

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Intelligent SME

respect for the opportunity to serve while feeling served.”

before or on the way to the office.

Social Media now has the capacity to gather enough data from their users and resell this valuable information to headhunters, recruiters, and job sites by offering targeted advertising opportunities Understanding this dynamic will allow the enterprise owner to realize that everyday their people are being targeting to jump ship to other companies from competitors and brutal headhunters.

Piracy is alive and well in the job market, ask any recruiter… and it’s a costly affair.

So how can business owners protect themselves from this threat that could surely erode their overall quality and spirit within their team? One answer is this simple and effective tool for leaders, The Leadership Insurance Policy. This smart leadership practice, which may be adopted by anyone in a leadership position, will go a long way to protect the organization by building and strengthening the people holding up the tent.

Here are a few of the fundamental practices that are critical to this leadership strategy:

Nourishment in the Work Place:

As most employees spend over half of their waking time in the office, it is no secret then that if this experience is not meeting their needs and… their wants, they could be jumping ship at any minute.

Think ‘Gone in 59 Seconds’.

Understanding ‘nourishment’ will play a big part of the success of the business, and no, it’s not about putting three vending machines in the employees changing room.

Really? Nourishment is all about anticipating needs and wants and providing these, even before they are required, in lavish portions to your team. These key questions can go a long way to raise the awareness for business owners to bolster employee engagement.

• Are you providing learning opportunities through advanced development training within your organization?

• Do you enable your team members to feel fostered with a feeling that they are part of your

company family?

• Are there clear guidelines expressed by you of what expectations you have of them and have you given the team members the tools they need to exceed these?

• What rewards programs do you have in place that truly engage your staff with desire and passion to feel and be part of the winner’s circle?

• If you were not the owner, would you personally enjoy working in this environment as an employee? These are but some of the questions employees must be asking themselves at some time or another. However the biggest question is: “Why on earth, if they really had an authentic choice of employment with similar benefits, would they want to work with you?” This answer is a reality check.

Not every big company starts out big:

They all begin with a founder or two, then grab a few key people, and either grow from there... or fade out. The ones that grow, in the evolutionary stages of development, were once an idea that became a small business to mushroom from there.The success stories of companies that grow into large organizations are not always only because they had a great product or a service. It is very often the culture within, driven by the founder that supports, propels and sustains real momentous growth.

Insurance for Leaders"

The bottom line is that if business owners today want to spend less time worrying about who might be leaving them, and more time growing their business, then using this system is a sure fire cure. Understand that the team members are your customers, and that they are an essential vital part and reflection of you and your organization. Treat them with as much respect as possible, and give them the empowerment to feel wanted and relied upon to get their job done. If people say they left an organization because they did not feel respected, it may mean they were not always able to rely upon ‘what was said

Leadership Insurance

would…hmm, really happen’.This is what is called in contrast, ‘lip’ service, a feeding of empty carrots that have zero nutritional value.

Everyone is allergic to this pile of baloney and have all heard it and walked away from it before.

The Leadership Insurance Policy, ‘LIP’ is a decision that owners of business make to take their family members within their company very seriously. They engage them with a sense of fun and pride, they recognize their small wins and they do everything that they say they will do for them. What is more, they show that they care?

This care resonates throughout the organization and is returned with respect. The by -product of this chemical reaction is that when owners use the formula, no matter what competitor or recruitment ads might be tempting them with, they can sleep easier. Their employees know that even if there is a better pay package being thrown at them, if they do jump ship, it’s not only money, it’s the feeling they have about the people in the organization, and the way they are… (hello)… ‘treated’.

The truth is that great leader’s foster growth, they actively grow leaders, they give respect first, to get it back, and they care about their people, from the bottom to the top. Imagine what it would be like if you practiced this awesome style of leadership? Our Forecast? ... Stunning Growth.

So, protect your greatest assets, or take cover.

Michael Tolan heads World Class Group as the CEO, a company that provides organizational development for human capital within companies, governmental organizations, NGO’s.

47 www.intelligentsme.com

August - September 2015

Intelligent SME Finance & Accounts

Mind the GAP: Good books make for successful businesses The inability, and sometimes unwillingness, of many SMEs to maintain proper books may lead to substantial difficulties and sometime even failure. There are compelling reasons for businesses to maintain proper records, good bookkeeping methods signal a better run business and garner easier finance. Considering the ready availability of options, the time to start minding your books is now.

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any entrepreneurs and small business owners spend numerous hours thinking about their business strategies but not enough time on their bookkeeping, placing it low on their priority list. A lot of SMEs simply embrace the “shoebox approach” for record keeping, recording sales and purchase transactions on pieces of paper and then storing them in a shoebox But as the saying goes, “if you can’t’ measure it, you can’t manage it”. Bookkeeping gives businesses visibility on their cash flow, allowing them to better plan for purchases and other costs, making it easier to forecast business needs ahead of time. It also helps businesses meet deadlines for payments such as rent, salaries, bills and loans.

In fact no business will stand the test of time without good bookkeeping. Clear books are an essential tool to gauging performance, offering a clear indicator of success, growth, decline or stagnation. SMEs can better adapt their strategies to changing dynamics and can make the necessary adjustments to turn things around or focus on areas

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that are growing to capitalise on opportunities.

Good bookkeeping practices are also an early warning system, alerting businesses of looming issues like rising costs for products or equipment or unpaid invoices before they damage the business.

Effective record management also provides protection against threats such as internal theft or dishonest employees by revealing fraud, wastage and record keeping errors. Additionally, they allow businesses to track money transactions and determine if there are any discrepancies that need to be rectified. It should come as no surprise then that a lack of proper record management contributes to the failure of many SMEs. Clear record keeping also facilitates sound, informed decisions when it comes to increasing headcount. It shows clearly whether a business can withstand the additional costs of new employees and labour. By providing a background picture, bookkeeping also helps SMEs spot trends and patterns, allowing them to forecast their future and set goals and projections.

There is one crucial benefit of

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good bookkeeping that is often overlooked: beyond providing accurate information for making good decisions, proper bookkeeping is a calling card that says you are a serious business.

The ability to present records that are in good order conveys a strong signal that your business is well-run and that you are likely a reliable partner to other businesses, organizations and investors seeking to do business with you. Proper records will make potential financiers and partners more confident when deciding to engage with a business and would make a potential acquirer feel more confident in their purchase.

In fact, bookkeeping is so vital for SMEs seeking funds, that it can make the difference between garnering the funds to grow

and being rejected. The ability to present audited financial statements for use by management, banks and prospective creditors, will make a strong case for an overdraft, a loan or flexible financing and credit terms.

Beehive looks closely at the financial records of SMEs seeking finance. We look at a range of variables that determine the credit risk of a business, and we rely heavily on documentation produced with reliable bookkeeping. An SME’s ability to produce such records means that the business is serious and committed to success, and is a reliable borrower. It also indicates that the business is well-managed, organised and has nothing to hide.

To help SME’s build their books better, Beehive has entered

into a cooperation agreement with UHY Saxena, a member of UHY International’s network of independent accounting firms with offices across more than 89 countries, to give SMEs access to world-class, professional accounting that they would not normally afford. UHY Saxena offers SME’s that are looking for finance through Beehive a cost effective way to obtain the required audited financial reporting at significantly reduced rates. SME’s that have not maintained good financial records in the past, can also use this option to gain a better understanding of their financial strength and open a new avenue for financing their growth.

Now is the time to take those receipts out of shoeboxes and wear your accounts with pride.

In fact, bookkeeping is so vital for SMEs seeking funds, that it can make the difference between garnering the funds to grow and being rejected

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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August - September 2015

Intelligent SME

Innovation

Why corporations should look at startups for innovation?

When large companies look outside, everybody benefits. The companies get access to innovations at an early stage, improve their offerings and mitigate the risk of being disrupted. Startups on the other hand get the opportunity to access new markets, expand and grow their business, create employment opportunities and pursue their dreams of making the world a better place.

Building Innovation

Disruptive Innovation

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f you look at the recent history of disruptive innovations, the powerful ideas that reshaped entire industries have almost always come from industry outsiders. Think Google Map Navigation Vs GPS devices, Uber Vs the taxi industry and the iPhone Vs personal computing (yes the iPhone didn’t just disrupt the telecom industry, it disrupted computing mobility), Instagram vs camera and film, Facebook money transfer vs remittance.

The list goes on.

Expertise is undoubtedly necessary for innovations, however in an age where growth is exponential rather than linear, as brilliantly described by Salim Ismail, Michael Malone and Yuri

The Power of Pull’ is all about creating platforms that help people mobilize appropriate resources when the need arises.

Van Geest in their “exponential organizations” book, we have to change the way we look at sourcing innovation. Traditionally, companies have looked inwards and focused on building innovation centers within the organization.

This approach definitely helps to develop innovations incrementally.

But this is no longer sufficient or efficient if companies want to achieve exponential growth.

There is overwhelming evidence that it is people working on the margins of their profession rather than insiders who are driving breakthrough business ideas. A case in point is Uber, which has reshaped the entire taxi industry by leveraging what John Hagel III described as the ‘Power of Pull’ in his book by the same name. ‘The Power of Pull’ is all about creating platforms that help people mobilize appropriate resources when the need arises. A traditional taxi company can own and employ a certain number of cars and drivers, while a company like Uber can pull cars and drivers when needed without owning any asset. Scalability is abundant when resources can be pulled on demand.

Aramex, Dubai-based global provider of logistics and transportation solutions, is another example of a company that has thrived by embracing this model.

While traditional industry players owned the aircraft they used to deliver packages, Aramex’s assetlight model has allowed it utilize available space with airlines as needed. This strategy has allowed it to avoid the significant costs required to own and maintain massive fleets across global markets and to also scale up and down as demand increases or decreases.

InfoFort is another example of looking outside for innovations.

When we wanted to further

“Crazy”

enhance our solutions and offer document management and workflow systems, we had to choose between developing these internally or looking outside.

We chose the latter path and researched and identified potential startups that we can partner with. We eventually ended up acquiring a majority stake in a well-established, fast growing and innovative startup in Turkey (CBK Soft) that had very advanced technology (envision document and workflow management). This gave InfoFort immediate access to talent, new market, and technology.

It also gave CBK Soft immediate access to 18 new markets where InfoFort operates, and the ability to accelerate growth. Everybody is a winner.

Breakthrough models like these point to the need to change our approach to innovation. Rather than looking inwards, we need to pull innovation from the outside.

The people that are today finding radical solutions to business challenges are not necessarily experts. They are entrepreneurs and smart young individuals who are approaching challenges and opportunities from a different perspective. These are the “crazy” ones that Steve Jobs talks about.

These are the ones that Peter Thiel in his book “Zero to One” calls 0 to 1 innovators compared to 1 to n innovators who innovate incrementally. The former represent creation, breakthrough innovation and disruption whereas the latter represent gradual growth.

The 0 to 1 people are the entrepreneurs and startups that are today getting together informally, even virtually, building something that can one day become a bigbang disruption -something like Instagram or Whatsapp that will take the industry by storm and make traditional players obsolete.

When large companies look outside, everybody benefits.

The companies get access to innovations at an early stage, improve their offerings and mitigate the risk of being disrupted.

Startups on the other hand get the

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Innovation

opportunity to access new markets, expand and grow their business, create employment opportunities and pursue their dreams of making the world a better place.

Here in the region, we have a critical need to foster a vibrant entrepreneurial environment that will nurture the growth of start-ups that can bring breakthrough innovation.

The start-up landscape is still in its nascent stages. There’s a new generation of entrepreneurs who are coming up with outstanding ideas but require a favourable ecosystem to implement their ideas successfully. This requires the active support of funding organisations like venture capital funds, support organisations like incubators and accelerators, service provider organizations, investors and most importantly giving startups and innovators the chance to gain business by believing in them, engaging with them and pulling them into larger organizations.

To thrive in today’s changing market environment, business leaders in our region as elsewhere need to incorporate an innovationpull culture into their companies and strategies. The innovationpull model will allow companies to source innovation from industry outsiders like entrepreneurs and start-ups significantly more efficiently and cost-effectively than if they were to generate it from within. This is where the future lies.

Abed Shaheen is the CEO of InfoFort, an Aramex company and the leading records and information management solution provider in the Middle East and Africa.

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August - September 2015

Intelligent SME

Masterclass

The SME Dilemma T

I think everyone knows that doing business is often about personal relationships.

Every year hundreds of studies/ surveys reinforce the belief that developing soft skills is an essential ingredient contributing to the success of an organization.

Surprisingly, the SME sector which employs 45% of the workforce in the UAE is on the edge with the argument. Do we wait till we grow to train our people or train them now so that we grow?

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raining is not effective. Classroom Training is theory, what happens in the practical business is way different from what is preached in the classroom, training is for big companies with extra money. Besides even if they want to learn something new, they have the University of Google at the finger tips; 24 hours!!! - few of the arguments from people on one side of the fence.

As long as employees know what they need to, in order to do what they should be, most employers are fine.

Developing technical skills of people make them great operators and while that sounds great, it does not usually make them effective managers or leaders, which is critical for sustaining and growing any business.

Motivating their teams (big or small) to constantly perform at their best to achieve great results does not come naturally to most people. I think everyone knows that doing business is often about personal relationships.

Not surprising then that building a personal relationship with people is essential to the final outcome in business.

Investing a little money and time on developing behavioral skills of employees can genuinely pay rich dividends in the most pleasantly surprising ways.

Our recent engagement with an SME in Dubai gave us wonderful feedback on how a session on ‘Crucial Conversations’ got a few of their employees communicating differently with a client. The unexpected mode of communication helped them diffuse tensions during negotiation and they saved over 100000 AED annually!!

That brings me to the next set who think training all their employees on one single skill once a year will be enough to make a difference. A misstep many businesses take and it usually turns them off from investing in training again. Even in these times of instant gratification, any change especially behavioral change takes time. To expect that people will give up their long standing habits to pick up new ones because they have been told so is irrational. Continued focus and periodic reinforcement is mandatory for change and that is why ‘a once in a year one session for everybody’ is as good as nothing.

“People often say that motivation doesn't last. Well, neither does bathing - that's why we recommend it daily.”

Said Zig Ziglar and I couldn’t agree more.

Having said that, I am in no way equating reinforcement means more training sessions on the same thing. The topic can be a discussion at employee-

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Masterclass

manager reviews or result area in an employee’s performance review. My experience taught me, the best way to make something relevant to someone is to make it all about them! Employees almost never get a chance to step out of their functional roles and focus on their developmental goals with an SME, so make the session and reinforcement be about them.

It will present them with a great opportunity to step out of their daily routine and allow them a little self-reflection. Self-reflection plays a dynamic role when it comes to self-improvement and from the sessions we’ve run, employees love it! An employer willing to invest in their development is huge

motivation for employees and goes a long way in maintaining loyalty.

With SMEs employing almost half of the workforce in the UAE (45%), the untapped potential of people as your most powerful is unimaginable. With Expo 2020 looming large and the growing demand for products and services; it is the perfect time to create a niche, to build a brand, to innovate and to service. There is only one factor running through all of that – your people! The outcomes may not be instant, however, the eventual benefits are more than worth it not just for the individual but for the overall business. So what is it for you; train or not to train?

Gavin D’Souza is the founder of Xcellence Plus, an innovative HR firm with expertise in Training, Coaching and HR Advisory Services. He is a senior Service Industry leader, with 15 years of international experience. Having lead teams within Banking, Hospitality & Travel, he has worked across multiple geographies; India, North America and the Middle East. He can be contacted on gavin@xcellenceplus.com.

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Intelligent SME

Leadership

Reinvent T yourself or Disappear forever Just because you’ve made your mark in the world by being the first with the latest and greatest idea doesn’t mean you can afford to sit back and bask in your glory. There is someone who is always waiting in the wings to knock you off your perch. PK Menon in this article shares with us that why just keeping up is no longer good enough?

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he world’s most innovative companies are not only the first to come up with new ideas, they also know how important it is to leapfrog (as opposed to catch up) when they find themselves lagging behind.

Apple founder, Steve Jobs was a master at this. When Jobs first built the original desktop Macintosh, the ‘iMac’, he focused so hard on allowing a user to manage their photos and videos that he completely missed the boat when it came to handling music. So while PC users were downloading music and burning CDs, the iMac paled to insignificance.

But rather than catching up to his greatest competitor by upgrading the iMac’s CD drive, Jobs leapfrogged them with an integrated system that combined iTunes, the iTunes Store and the iPod.

It was a move that ended up revolutionising the music industry. Then despite the iPod’s massive global success, Jobs spent little time basking in that glory. Instead he opted to think about the next piece of technology that could jeopardise it. And so the iPhone was born, which allowed users to add music to their mobile phone handsets for the first time. As Jobs famously said at the time, “If we don’t cannibalise ourselves, someone else will.”

Today we are all grappling with extraordinary changes that represent a permanent shift in the way we work, communicate, share our lives, create value, develop leaders and innovate. What seemed unthinkable yesterday is either commonplace, on the horizon or on the verge of being introduced today. With the world becoming infinitely smaller, all businesses must focus more heavily on global megatrends as opposed to just issues specific to their own industries and organisations if they want to do more than just survive.

As a result, there has never been a greater need to stay relevant and ahead of the game as opposed to simply keeping up. In short, companies that thrive in the 21st Century are those that master the ability to continually reinvent themselves to cater to the ever-changing needs of the market and their future business leaders. Those that don’t, risk disappearing forever.

Making change a project within a business is the old story

With the unprecedented pace of change we all face today, holding on to ideas that worked in the past will no longer suffice. All leaders today must be ready for change at all times and nimble enough to respond swiftly. This isn’t just about being ready for change. It’s equally about

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Leadership

developing an appetite for change.

Making change a project within a business is the old story.

Developing a fast moving, agile business is the new goal. This is about pushing the edges so you can be first out with the latest and greatest innovation, just as Steve Jobs was so passionate about doing with Apple.

Don’t risk sitting back & basking in your glory

Just because you’ve made your mark in the world by being the first with the latest and greatest doesn’t mean you can afford to sit back and bask in your glory. Someone else is always

waiting in the wings to knock you off your perch. The same can be said for large, successful companies that can have a tendency to become somewhat complacent due to their size and successful past. Woolworths Group in the UK was a classic example. Once located in just about every major town, the retail giant entered administration in November 2008 and closed all 807 stores just two months later. Why? Because they had failed to reinvent themselves to meet the needs and wants of changing markets. In the end they had become so damaged around the edges that they were no longer financially viable.

Coinciding with the closure of the last stores, the Woolworths brand in the UK was bought out

by Shop Direct Groups, who restarted the brand in the UK as an online retailer within just six months. The biggest danger for businesses that have experienced rapid growth and become large can sometimes actually be their size. Why? Because their size alone means the consequences of taking a risk and getting it wrong are much greater. But you need only look at Apple and global fashion giants like Zara to know that size is just an excuse. Even giants can be nimble if they want to be.

target market fails to see what’s in it for them? Alternatively, your decisions may have been right at the time, but our ever-evolving commercial landscape creates the need for constant re-evaluation.

Wisdom comes from constantly observing, listening, evaluating, navigating and having the agility and the courage to alter, adapt or even halt the course of a journey along the way if necessary. In facing major challenges such as shifts in market trends, the best plan of attack is to bring the team together to evaluate the change, consider the variables, plan a course of action and mobilise the troops to implement the plan.

But if at any point you find your course of action isn’t working, there is no shame in changing tact mid-stream, as long as the change is well communicated to all concerned. In fact the wise leader has the strength of character to learn from a mistake and move on, comfortable in the knowledge that the new direction is better than the previous one. Remember change is often hard at the start, messy in the middle and perfect in the end, But as challenging as change may be to deal with, it is paramount to the success of any 21st century business.

Innovate, execute, evaluate, adapt

Sometimes even the best decisions aren’t always the right decisions. For instance, what would be the point of launching something never seen or heard of before if your

Prakash ‘PK’ Menon is one of the most influential leadership, retail and supply chain and logistics authorities. He is the author of three books – Driven - Accelerate Your Career with Smart Transitioning, Supply Chain is Sexy - Harnessing the Retail Revolution and Fail Smart - The Undeniable Link Between Failure & Success. Please connect with him on pk@ thoughtleadersme.com 55 www.intelligentsme.com

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Intelligent SME

Leadership

Psychopathic business leaders area risk to your business Not all psychopaths end up as serial killers or criminals. In fact, many psychopathic traits are rewarded in business as leaders. A psychopathic CEO will lie, manipulate, cheat, threaten, bulldoze and destroy anybody or anything that comes in his/her way. While this quality is seen as desirable in business, it can often become the very reason for its downfall.

Is there a psychopath in your office?

One person out of a hundred in the general population is a psychopath. In business however, four people out of a hundred are psychopaths. There is something about business in general and leadership in particular that psychopaths are attracted to four times over. Statistically therefore, if you are a small organization employing just about 25 people, there is a good chance that there is a psychopath working in your office.

How do you identify a psychopath?

Psychopathy is not classified as a mental disorder in any of the major directories of mental illnesses yet but some of the research in neurology suggests that the brain of a psychopath is wired differently from a normal brain and amongst other criteria, there is a marked difference in the Amygdala (the part mainly responsible for primary emotions) in the brain of a psychopath.

Generally speaking however, how can you tell whether your CEO, your colleague, your boss or your assistant is a psychopath? How can you do this without asking them to take a test or taking them to a mental health facility? The answer lies in looking for the following behavioral traits:

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1. Lack of empathy, sympathy and compassion 2. Grandiose sense of self 3. Lack of remorse or guilt 4. Cunning and manipulative 5. Promiscuous sexual behavior 6. Superficially charming 7. Very good at lying 8. Fearless dominance 9. Externalising blame

While this list is not exhaustive and you could spot a few borderline cases, the classic psychopath would be a champion at most of the above traits. If you wish to test yourself however, look up the Hare Pscyhopathy Checklist (PCL), a professional instrument developed by Dr. Robert D. Hare through his study of prison convicts.

Some psychologists have a theory that many of the world's ills can be blamed on psychopaths in high places.

Jon Ronson, author of ‘The Psychopath Test’ is certain that psychopaths in business are far more dangerous than psychopaths who are serial killers or criminals.

In his words “A criminal, murderous psychopath ruins the lives of a finite number of people— their victims, their families, friends, and their loved ones. A proper high-scoring corporate psychopath can remold society at will. I don't mean to get political, but it really

does seem to be true. Think of the suicides, think of the destruction this recent financial situation has caused. If you come to the conclusion that the recent financial collapse (the sub-prime crisis) is due to corporate psychopathy, it can destroy a generation. So, statistically there are more deaths because of corporate psychopathy than because of serial killer psychopathy.”

Why do psychopaths become leaders?

Not all psychopaths end up as serial killers or criminals. In fact psychopaths are clever and cunning enough to keep themselves out of jail. Unfortunately though, many psychopathic traits are rewarded in business. Their grandiose sense of self, their charm, their ability to fearlessly dominate are some of the traits that are mistaken for leadership qualities. However, along with these traits, come the traits that make psychopaths so destructive - They are manipulative, unethical and remorseless, they love breaking rules and have no regard for other’s emotions.

The one quality that makes them sprint up the corporate ladder also causes maximum damage to others around them.

It is the ability to get what they want, no matter at what cost!

A psychopathic CEO will lie,

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We offer our services to anyone and everyone whether big or small, company or individual. manipulate, cheat, threaten, bulldoze and destroy anybody or anything that comes in his/her way. While this quality is seen as desirable in business, it can often become the very reason for its downfall.

What can organisations do to prevent problems caused by psychopaths?

Snakes in Suits: When Psychopaths Go to Work, by Paul Babiak, Ph.D., and Robert Hare, Ph.D., published in 2006, is an interesting read and offers many comprehensive solutions on the subject. The two most important ones, in my opinion are outlined below:

1. Don’t rely completely on your impression in an interview: Psychopaths are master manipulators and are usually very good at giving an impression. There

are many pre hiring tests that are available in the market and a few that offer the requisite screening.

2. Make succession planning an important, meticulous and detailed process with a defined emphasis on ethics and proven results: The outgoing leader often has enough time to study his/her potential successors and can very well isolate an individual provided he/she has prior awareness of what he/she is screening for.

Intelligent SME

Leadership

Sachin Thombare is a hypnotist, a master practioner of Neuro Linguistic Programming and Gestalt therapy. He is the creator of the Subtle Skills™ training platform and trains corporate clientele on enhancement of human potential.

Sachin is also an intervention based coach who specialises in turnaround strategies.

Can a psychopath be cured?

The world of psychology currently has no known cure for psychopathy. This may not be surprising because the world of psychiatry does not mention psychopathy as a disorder. While there have been experiments that have yielded positive and encouraging results, there is

The world of psychology currently has no known cure for psychopathy. This may not be surprising because the world of psychiatry does not mention psychopathy as a disorder

nothing substantial that can be termed as a universal cure. James Fallon, a neuroscientist and author of ‘The Psychopath Inside’ discovered that he himself is a psychopath. He however goes on to state that he could contain his behavior within socially acceptable norms because of a loving and caring childhood.

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Leadership

The 4 Commandments to become a better leader Leadership starts with you! Attitudes and behaviours have a direct impact on people around us. Though there are countless articles and blogs writen about leadership and ways to become a better leader. However there is no magic potion that can transform you into a good leader. Hence follow these 4 commandments and lead for success.​

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f you were to Google the sentence ‘How to become a better leader’ you will find approximately 29,500,000 results! Obviously, there are countless articles and blogs written about Leadership and ways to become a better leader. It seems to us that the subject has been so dissected, that writing yet another article about it might sound repetitive or plain boring. So, we

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cannot see a valid reason in writing about what the “right leadership” skills would be.

The thing is, we are pretty sure that many of you have read books or articles on leadership on a regular basis, and you might even have taken several Leadership courses. And what were the results? Our guess is that if you are lucky, you might have learnt something new or alternatively, it

was a good reminder of what you already knew. And whatever your takeaways, did you actually use them in your job? Our guess is that you most likely told yourself ‘This is great and very true, I should do this or I should apply that’ but the effort did not take, and you went back to your usual ways.

‘Old habits die hard!’ In a world where ‘being a better leader’ is on every companies’ agenda, why

August - September 2015

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Leadership

aren’t conventional solutions taking hold? Here is the thing, there is no magic to it, no miracle recipe to become a better leader, just as there is none to lose weight! Everybody wants to be fitter and knows what to do to get there: eat healthy and exercise, and yet many seem to be looking for a solution that is quick and effortless. Moreover, if the results are not immediate, one tends to simply give up.

According to recent studies, it takes an average more than two months, 66 days to be exact, for a new behaviour to become habit. So, whilst everything you know about leadership is very relevant, doing something about it will require time and effort!

Accordingly, the question we would like to answer is not ‘How to become a better leader’ but ‘How to activate your willingness to change’. Here are our 4 commandments to help you do so:

Commandment #1: Thou shall know

thyself! Your strengths, weaknesses, needs, motivations, beliefs, values and what makes you tick - all these aspects trigger our habits and dictate our behaviours, what we are able and not able to do.

To start the process to change, we

must first know our starting point.

Thus, self-awareness is the only way to activate self-development.

Knowing all these aspects about yourself will give you the power to influence your attitude and behaviours to reach what you want to achieve. Leadership starts with you! Attitudes and behaviours have a direct impact on people around us, whether it is positive or negative. And being aware of that impact on others is key. You must question yourself, reflect and understand how you work as an individual as it will help you tune in and see yourself from different perspectives. This requires dedication and you will become your own catalyst.

Commandment #2: Thou shall have a purpose! So, you want to become a better leader. Well, for the sake of what? What is your main driver in seeking this change? A better pay?

Is your organization telling you to do so? Maybe society dictates it?

Leadership is not just a title or a label but a way of being. ‘A man convinced against his will, is of the same opinion still’. If you do not have a clear purpose for why you need to change, you cannot live that change. The best Leaders all have a sense of purpose, a deeper motivator and meaning to what they do which is beyond themselves. Without having a clear purpose your motivation will be lost. Ensure you have a purpose and understand why you’re doing this, or it will be difficult to put your thoughts in actual motion.

workplace. Showing vulnerability means you might not have all the answers, but are transparent and can even admit that you can make mistakes. This creates a genuine connection with others, and an authentic culture where individuals will be able to have honest conversations, be accountable to each other, and learn from their failures. As a leader, you have to come to terms that you are not perfect and there is nothing wrong with letting yourself be ‘seen’.

Commandment #4: Thou shall decide to act!! Knowing the concept of what makes a great leader is good and having a purpose is great but these will only remain thoughts if you do not put them to action!

Make it tangible and hold yourself accountable, whether it is writing them as goals or whatever works best for you. Commit to making a real change - a change that is carried out through not only words but also actions.

There you have it – our 4 Commandments to lay the groundwork towards transformational change. The ten thousand mile journey starts with a single step. So, it doesn’t matter whether it is going to take you 66 days or more, what matters is that there is a will and a decision about becoming the best Leader you can be!

Commandment #3: Thou shall be

vulnerable! We can already see you cringing on this one… Most people perceive vulnerability as being a weakness. On the contrary, vulnerability is a strength and is part of being human – your true self. When you let your guard down and be open, it establishes trust and respect with people around you and sets a strong foundation for communication at the

​ alma El-Shurafa and Veronique S Ademar are Executive Coaches and partners at The Pathway Project and provide outstanding tailored executive leadership & career development coaching to professional who are navigating the dynamics of the global UAE market.

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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 ?

Rare & Fabulous WATCHES | YACHTS | DESIGNER | JEWELLERY | BOUTIQUE | REAL ESTATE | GADGETS | EXOTIC DESTINATIONS | FINE DINING

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Rare & Fabulous

The ultra-light watch of the future R

ado takes pride in pioneering materials in the watch industry and the new Rado HyperChrome strengthens this leading position. With its case and bracelet made of ultra-light silicon nitride ceramic and a new movement with aluminium bridges, the HyperChrome is now lighter than ever. Silicon nitride, whose chemical formula gives this ultralight urban timepiece its name, is naturally dark grey in colour. The addition of a matt finish gives the watch a superhero feel. Although it follows the HyperChrome’s streamlined design with stainless steel side inserts, this model breaks out into a field of its own, with a black dial sporting a supercar ventlike design. The red-tipped second

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hand stands out against the dark matt background of this watch as it flies round the dial like a car on the track. The new HyperChrome Si3N4 is the ideal watch for the man who likes a bit of mystery. Its standout style will make heads turn, while the material responsible for its unparalleled lightness remains enigmatic. Its unparalleled comfort and lightness make it ideal for everyday wear, while the silicon nitride ceramic ensures it will stand the test of time.

Silicon Nitride (Si3N4)

This ultra-light high-tech ceramic was first introduced by Rado in 2012 for the watch case of a limited edition True Thinline.

Since then Rado has dreamed

of making a full watch out of this distinctive ceramic, and in 2015 the dream has become a reality. Known for its exceptional properties, Silicon Nitride is an extremely light-weight, hard, manmade, high-performance material used elsewhere in the production of mechanical and thermal applications such as automotive engine parts. While its hardness of 1,450 Vickers renders it super scratch-resistant, its density of 3.4g/cm³, less than half that of standard high-tech ceramic, makes the material ultra-light and adds an extra dimension of comfort to this new HyperChrome.

The lightness of the beating heart

Created with the motto “Design, Lightness and Performance” in mind, the new ETA calibre A31 ALU is the perfect movement for this new ultra-light Rado watch.

By using an ébauche (movement blank) made of aluminium, the weight of the movement is significantly reduced compared to ones that traditionally use brass.

Developments have also increased the power reserve offered by the movement by 22 hours.

Offering a minimum of 64 hours power reserve, your watch will still be ready to go on Monday morning after a whole weekend of rest.

Anodised aluminium offers an innovative design and as well as increased corrosion resistance and wear resistance compared to untreated aluminium. The hightech movement, materials and know-how combine in the ultralight watch of the future.

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Rare & Fabulous

Lighter, economical & faster: the new 911 GT3 R B

ased on the powerful 911 GT3 RS production sports car, Porsche has designed a new customer racer for GT3 series around the world: The 911 GT3 R. Boasting more than 500 hp (368 kW) the new racing 911’s evolution is embodied through lightweight design, enhanced aerodynamics, increased efficiency, improved handling and further optimised safety, as well as the lowering of service and spare parts costs.

Adapted from its road-going sibling but in a race track-formatted model, the 911 GT3 R features the distinctive double-bubble roof, and a wheelbase which has been lengthened by 8.3 centimetres.

This ensures a more balanced weight distribution and more predictable handling particularly in fast corners. These important racing attributes are further enhanced through the application of lightweight solutions for the body, add-on parts and suspension, optimizing the car’scentre of gravity.

The lightweight body design of the 911 GT3 RS production sports car featuring an intelligent aluminium-steel composite, has proven to be the ideal basis for the race car. The roof, front cover and fairing, wheel arches, doors, side and tail sections as well as the rear cover, are made of particularly light carbon-fibre composite material (CFRP). All windows – and for the first time even the windscreen – consist of polycarbonate.

Powering the new 911 GT3 R is a cutting-edge four-litre flat-six unit which is largely identical to the high-performance production engine of the road-legal 911 GT3 RS. Direct petrol injection, which operates at pressures up to 200 bar, as well as variable valve timing technology ensure a particularly efficient use of fuel. Moreover, the normally-aspirated engine offers significantly better driveability and a broader usable rev range. Power from the rear engine is transferred to the 310 mm rear wheels via a Porsche sequential six-speed constant-mesh gearbox. As in the GT road-going models of the 911, the driver changes gears via shift paddles conveniently positioned on the steering wheel. The aerodynamics of the 911 GT3 R also follow the example of the road car. The distinctive wheel arch air vents on the front fairings increase downforce at the front axle. Measuring two metres in width by 40-centimetres in depth, the rear wing lends aerodynamic balance. From its 911 RSR

big brother, the GT3 R has adopted the concept of the centrally-positioned radiator. By eliminating the side radiators, the position of the centre of gravity has been improved, the radiator is better protected against collision damage and the venting of hot air through louvers in the front cover is also greatly improved.

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August - September 2015

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Rare & Fabulous

Turn your home in to a perfect sanctuary with Electrolux air conditioners E

lectrolux launches a range of sleek air conditioners that are designed to turn your home in to the perfect sanctuary.

Electrolux is globally renowned for its stylish and high quality kitchen and laundry appliances. The Swedish brand has now launched it’s first-ever air conditioning range in the region using its years of technical expertise and superior product design capabilities. Consumer wellbeing is always top of mind in the development of any Electrolux product. Research shows that being confined indoors for most of the summer results in exposure to poor quality recycled air. Electrolux new range of air conditioners are specifically designed to combat this issue with a Pure O2 system with

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a 3M 4in1 filtration system that actively eliminates bacteria and viruses from the air, enabling a fresh and cooling sanctuary for the home.

The range includes split air conditioners, portable air conditioners and dehumidifiers, offering a complete home air care solution. Like all Electrolux products, technological advancement is geared toward consumer functionality and the range comes equipped with special features like a follow-me function that maintains the desired temperature the room wherever the remote control is located.

The product is designed with a comprehensive 3M 4in1 filtration system that effectively targets mildew, bacteria, allergens and

viruses; and provides a healthy home for you and your family. It combats stuffy indoor air through a Bio Hepa filter that removes airborne particles and deodorizes the room and its Fluent Soft program efficiently lowers noise level, leaving you with a fresh and tranquil sanctuary.

Electrolux air conditioners achieve sophisticated form and functionality through superior Scandinavian design, providing you with a product that is both reliable and stylish. “With Electrolux’s strength in cooking & laundry globally, we are enthusiastic about bringing our expertise into the Air Conditioner segment to benefit our customers with a complete product offering for their homes”, says Abby Thomas, Electrolux Product Line Head.

August - September 2015

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Rare & Fabulous

Huawei P8 ignites creativity in the Middle East market T

he 2015 flagship smartphone from Huawei launches across the region. A new era of smartphone technology becomes available to the Middle East market today as Huawei launch the P8. Once again redefining the smartphone industry, the Huawei P8’s exciting features, cutting-edge technology, durability and sleek design allows consumers to ignite their creativity.

Building on the rich heritage of the P Series, the Huawei P8 takes beauty to the next level, striking a perfect balance of artistry, creativity and functionality. The Huawei P8 delivers a new level of usability for different applications impacting everyday life – at work and at play. With craftsmanship that pushes the bounds of possibility and new revolutionary light painting modes, the Huawei P8 provides consumers with an inspiration for creativity.

Inspired by the design elements of leather-bound handcrafted book binding, the Huawei P8 is a unique smartphone that combines clean, aesthetic lines with innovative technology, beauty and elegance.

The phone comes with four elegant color options: silver, gold, black and grey. The devices come in a translucent package and the unboxing experience is like taking a book from the shelf.

Mr. Jiao Jian, President Huawei Device Middle East commented on the regional launch: “We are extremely excited to launch the

user-friendly P8 for consumers across the Middle East. Huawei has seamlessly combined the best elements of style and strength in this device, delivering a revolutionary user experience - especially in terms of camera and network connectivity.

Building on the outstanding market performance of Huawei’s P series, we are fully confident that our P8 will become one of the most popular smartphones among consumers in 2015.”

The Huawei P8 introduces a new philosophy for camera design – a camera optimized for low

light and high contrast. The P8 leverages a combination of hardware, software and proprietary algorithms to help users capture beautiful photographs, even in the worst lighting conditions, bringing the joy of photography back to the smartphone user.

Huawei’s enhanced technology and software provides four professional quality low-light shooting modes, a director mode, and fun creative shooting modes. All users – from painters and architects to someone in the fashion industry, now has access to a mobile photo and video studio that provides diverse and innovative functionality for capturing artistic inspirations within daily life.

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