Intelligent SME issue 38 (June 2016) by SPI Publishing

ISSUE: 38 | JUune 2017 facebook.com/theintelligentsme @intelligentsme

Give your brand an unfair advantage

The Sharing Economy

Demystifying VAT in UAE Collaboration Tools: Combatting the Competition The Disruption of Digital Business Models Strategic Alliance Partner

Sole Automotive Partner

Reinventing Business Consulting Exclusive interview AJATSHATRU SHARMA, Ccerebrate Consulting Logistics Partner

Knowledge Partner

Editorial Think Tank & Advisors

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 of “CLÁSICO BRANDS”, over a dozen brands have been created and are in the process of being launched worldwide. Ajay is a true visionary and makes sure that the company's concept and strategies are right 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 more than 20 years of experience in SME development and business creation. He is interested in the life cycle dynamics of firm growth and mentoring entrepreneurs. In his current job, Alexander is responsible for developing new initiatives for DED to take it to the next level as a knowledge-driven economic development agency.

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June 2017

Akram Miknas, Chairman & Founder, PROMOSEVEN HOLDINGS B.S.C.C. (P7H) Akram Miknas is known to be one of the pillars of modern marketing communications in the Middle East. His involvement in real estate development, especially after the successful completion of the Pearl Towers (Abraj Al Lulu), anchored him as a leading accomplished developer in the Gulf. In early 2000, he branched into the hospitality business and successfully managed and built several hotels and outlets in Bahrain. His success in this business was crowned by becoming the franchisee of McDonald’s in Lebanon; where he built the business from seven to 26 restaurants in just five years.

Deepak J Babani, CEO, Eros Group Deepak Babani has been with Eros Group for over 30 years. Mr. Babani has spearheaded the growth of Eros Group from a turnover of Dhs six million in 1981 to over Dhs four 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. and subsequently to CEO in 2002.

Editorial Think Tank & Advisors

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 group 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 the ‘Top 100 Powerful Arabs 2013’, and ‘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 has greatly influenced his corporate policies and goals for ‘The Kanoo Group’ as a reputable company.

Reg Athwal, Founding Partner & MD, RTS Global Partners Reg Athwal is the Chairman of RAW Group and the Founding Partner & MD of RTS Global Partners, the leading family business advisory firm in Africa, Middle East and Asia. The company has been supporting hundreds of clients in over 150 disciplines spread across 57 countries with offices in Dubai, UAE and Nairobi, Kenya. Reg’s vision is to grow into a major company of 1000 members in 22 countries by the year 2022 with the primary aim of transforming 22,000+ family businesses and impacting millions on the way.

K. Rajaram, CEO, Al Nabooda Automobiles K. Rajaram has more than three decades of experience in the automotive industry, starting his career in Oman in 1983. He moved to the UAE in 1996 to lead Al Nabooda Automobiles, the exclusive dealer of Audi, Porsche and Volkswagen in Dubai and the Northern Emirates. Under his leadership, Al Nabooda Automobiles has changed the face of the UAE automotive market by setting the highest benchmarks in customer service and pioneering the automobile ownership experience.

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 three employees to over 40 locations in nine countries worldwide including UAE, Oman, Bahrain, Saudi Arabia, Qatar, Africa and India, in addition to procurement offices in China with 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. source of inspiration for driving Danube’s business by leaps and bounds.

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CONTENT 18 INTERVIEW Strategize, Implement, Grow: Reinventing Business Consulting

SME FINANCE

FUTURE ENTREPRENEURS

COLLABORATION

Demystifying VAT in UAE

Intelligent SME

Entrepreneurship for UAE Millennials

June 2017

Collaboration Tools: Combatting the Competition

COVER STORY

DIGITAL

FEASIBILITY

DISRUPTION

46 48

The Sharing Economy

Social Commerce & Opportunities for Businesses

Feasibility Study for the F&B Industry

The Disruption of Digital Business Models

SPI Group www.spigroup.ae www.theintelligentsme.com www.robustrak.com www.innovationandtech.ae www.innovationsummit.ae www.dubai-gbs.com www.smeworld.ae www.makeinuae.ae Publisher & CEO: Shantanu A.P. Consulting Editor : Auritri Chatterjee Expert Contributors: Amish Nawaz Dr.Shanmugan Joghee Kanchan Kulkarni Love Mansukhani Marc-Alexis Remond Mohamed Khan Rohan Nathan Sirish Kumar

Designer : Retheesh Viswanath Distribution Department : Jerry P. Sam

HUMAN RESOURCES Decoding the True Cost of an Employee

LIFESTYLE From Sketches to Studio - Breaking into Dubaiâ&#x20AC;&#x2122;s Fashion Industry

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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Publisher's Note

Shantanu Phansalkar, Publisher, SPI Group

f you were asked to give an example of a person you believe to be a true leader, who would you name? This question is the key to a successful and sustainable business, because there’s no replacement for good leadership. An effective leadership is key to solving critical challenges that might threaten the existence of the SME – examples being, insufficient cash flow, rising costs, turbulent markets, impulsive customers, and compliance issues. Leaders in SMEs need to manage things, both big and small. Consequently, it is the mental framework and strength of the leader that decides the fate of the enterprise, very much like any other organisation. However, unlike other organisations, an SME leader does not have the luxury to hide behind titular roles, like in a big organisation; nor can they give up, as the stakes are really high than a start-up and failure isn’t an option. In spite of constant struggles of employee engagement and retention, and seeking validation

amongst a sea of competitors, SMEs have a strong sense of purpose and the ability to innovate coupled with underlying values that the leader needs to leverage effectively. This is especially true now as the UAE economy is extremely dependent on the relentlessness of the region’s SMEs. It is important for the leaders now to strive on while keeping the employees motivated enough so that when opportunities present themselves, each one is in the right frame of mind to realise it, grasp it and utilise it to the fullest. Leadership is no doubt a tricky domain; leaders need to be practical yet empathetic, strict yet trustworthy. But, once a leader has identified their leadership style and has the willingness to adapt to the situations and challenges, propelling a business can be thoroughly educative, awarding and excitable experience in itself. Happy Reading!

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June 2017

Business Announcements

UAE's entrepreneurship landscape gets a boost with Government-accredited entrepreneurship programme

ubai Business Women Council (DBWC), the UAE’s leading platform for the personal and professional development of women in the emirate and beyond, has teamed up with Mind Cloud Academy, to offer the UAE’s first entrepreneurship programme accredited by the Government of Dubai Knowledge and Human Development Authority (KHDA). Due to launch in September 2017, the Mind Cloud entrepreneurship programme will support the UAE’s drive to build a knowledge economy – a core pillar of the country’s strategy to fuel economic diversification, industrial growth and job creation. With innovation and education central to the development of human capital, the one-of-a-kind programme will target an inclusive audience of students, SME entrepreneurs and corporate employees with an A-Z curriculum of tailor-made theoretical and practical courses led by real entrepreneurs. “At the heart of the Council’s on-going work is our commitment to support women in Dubai and help them participate fully across all areas of economic life,” said Dr. Raja Al Gurg, President of Dubai Business

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Women Council. “Encouraging entrepreneurship is an important part of inspiring women to be the best they can be and supporting them in unlocking their potential. The Mind Cloud Entrepreneurship Programme is an innovative business venture that is in line with our mission to promote gender balance and aid women of the UAE in their fearless ambitions to make ever more valuable contributions to society.” The programme, which will pilot in July, will take a holistic and nurturing tutorial approach with a focus on ‘mindful’ leadership. It will teach mental resilience and leadership skills for overcoming inner critical voices, instil a mind-set of innovation-based thinking in recruits, and provide practical and theoretical knowledge via access to a highly-skilled network of mentors and peers. “We want to offer everyone the opportunity to discover their entrepreneurial spirit and, most importantly, we want entrepreneurs to know that they never have to feel stuck-in-a-rut. Turning pro is a mind-set and if we are struggling with fear and self-sabotage, the problem is in our thought processes. Mind

Cloud Academy and DBWC share a commitment to provide strategic education opportunities and this landmark partnership will help to create a supportive network of bright minds who believe in the success they are capable of achieving,” said Genny Ghanimeh, Founder and CEO of Pi Slice & Mind Cloud Academy. The Mind Cloud Academy Entrepreneurship Programme courses will include: Customer Acquisition & Retention; Legal & Governance; Mindful Leadership; Business Model; Design Thinking; Finance; Marketing & PR; Pivoting Business Model; Sales Strategies and Scaling Up Strategies. Each course in the programme will be certified as part of the KHDA-certified diploma.

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Business Announcements

Five more global companies join Jafza's Tumoohi programme

ive new global companies have signed up to be part of Jafza’s Tumoohi programme that provides UAE Nationals with work experience and employment opportunities. DP World Group Chairman and CEO Sultan Ahmed bin Sulayem signed a series of agreements with Michelin, Danube Group, Transworld Logistics, Conares and Al Dobowi recently

coupled with one-on-one mentorship from leading professionals in their respective fields. Appreciating the enthusiastic response from Jafza’s customers, Mr Bin Sulayem, said: “It is very encouraging that another distinguished group of companies have decided to join Tumoohi, keen to help us train Emiratis and improve their chances of obtaining jobs that suit their

sector for talented UAE nationals and boosts the participation of youth in the labour market, creating new opportunities for them.” Mr. Bin Sulayem added that the initiative will help integrate university education and vocational training and assist young people in developing their understanding of organisational culture. Tumoohi, Arabic for ‘my am-

bringing the total number of companies participating in the programme to 21. The five new companies join industry leaders such as P&G, Unilever, Proclad and Mars GCC, Nestle, GE and others to provide young Emiratis the specialised job skills and technical expertise required by the job market

aspirations. In line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, the initiative forges strategic partnerships between national and international companies. It creates more jobs in the private

bition’, helps UAE nationals increase their career development opportunities with positions that best suit their aptitude, specialisation and ambitions. The programme, developed by Jafza’s Human Resources Department, aims to provide the next generation of entrepreneurs a range of appropriate skills and expertise

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Business Announcements

to meet the future needs of the UAE and its diversified economy. Trainees receive extensive guidance from experienced professionals helping them acquire

valuable practical experience that will develop their future careers. Training periods range from 6-12 months with a month-

ly salary with the possibility of employment in the companies they are placed in line with their abilities and the availability of vacancies.

Renewable energy employs 9.8 million people worldwide, says IRENA report

ore than 9.8 million people were employed in the renewable energy sector in 2016, according to a new report from the International Renewable Energy Agency (IRENA). Renewable Energy and Jobs – Annual Review 2017, released at IRENA’s 13th Council meeting, provides the latest employment figures of the renewable energy sector and insight into the factors affecting the renewable labour market. “Falling costs and enabling policies have steadily driven up investment and employment in renewable energy worldwide since IRENA’s first annual assessment in 2012, when just over five million people were working in the sector,” said IRENA Director-General Adnan Z. Amin. “In the last four years, for instance, the number of jobs in the solar and wind sectors combined has more than doubled. “Renewables are directly supporting broader socio-economic objectives, with employment creation increasingly recognised as a central component of the global energy transition. As the

scales continue to tip in favour of renewables, we expect that the number of people working in the renewables sector could reach 24 million by 2030, more than offsetting fossil-fuel job losses and becoming a major economic driver around the world,” Mr. Amin added. The Annual review shows that global renewable-energy employment, excluding large hydropower, reached 8.3 million in 2016. When accounting

for direct employment in large hydropower, the total number of renewable-energy jobs globally climbs to 9.8 million. China, Brazil, the United States, India, Japan and Germany accounted for most of the renewable-energy jobs. In China for example, 3.64 million people worked in renewables in 2016, a rise of 3.4 per cent. IRENA’s report shows that solar photovoltaic (PV) was the largest employer in 2016, with 3.1 million jobs — up 12 per cent from 2015

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Business Announcements

— mainly in China, the United States and India. In the United States, jobs in the solar industry increased 17 times faster than the overall economy, growing 24.5 per cent from the previous year to over 260,000. New wind installations contributed to a 7 per cent increase in global wind employment, raising it up to 1.2 million jobs. Brazil, China, the United States and India also proved to be key bioenergy job markets, with biofuels accounting for 1.7 million jobs, biomass 0.7 million, and biogas 0.3 million. “IRENA has provided this year a more complete picture on the state of employment in the renewables sector, by includ-

ing large hydropower data. It is important to recognise these additional 1.5 million working people, as they represent the largest renewable energy technology by installed capacity,” said Dr. Rabia Ferroukhi, Head of IRENA’s Policy Unit and Deputy Director of Knowledge, Policy and Finance. The report finds that globally, 62 per cent of the jobs are located in Asia. Installation and manufacturing jobs continue to shift to the region, particularly Malaysia and Thailand, which has become global centre for solar PV fabrication. In Africa, utility-scale renewable energy developments have made great strides, with South

Africa and North Africa accounting for three-quarters of the continent’s 62,000 renewable jobs. “In some African countries, with the right resources and infrastructure, we are seeing jobs emerge in manufacturing and installation for utility-scale projects. For much of the continent however, distributed renewables, like off-grid solar, are bringing energy access and economic development. These off-grid mini-grid solutions are giving communities the chance to leap-frog traditional electricity infrastructure development and create new jobs in the process,” Dr. Ferroukhi said.

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Demystifying VAT in UAE VAT is the ‘talk of the town’. Almost everyone in the business world is talking about VAT and concerned about its implications on business as well as consumers. AAMISH NAWAZ provides you with the basics of VAT and presents key information for businesses to survive through this critical juncture.

s VAT is an indirect tax paid by the consumers, theoretically, it should not have any repercussions for businesses, but businesses are the ones to pre-pay the tax along the supply chain until ultimate recovery at the point of sale. Thus, businesses do have motive to be worried about impact of VAT in terms of cash requirements, record keeping and administration of effective VAT system to avoid financial and non-financial penalties from Federal Tax Authority. VAT has the potential to change strategic outlook of the economy as a whole. Businesses have to be more pro-active, lean, economical and ethical to survive in a post-VAT world.

SME Finance

Organisations may have to restructure their organisational and business models to stay afloat and competitive. The most recent challenge faced by business community is the implementation of VAT. VAT implementation essentially requires • Impact assessment; and • Change management Businesses must assess the impact of VAT on their existing business model. They must assess the expected financial, strategic and tactical footprint of VAT. Because of it, businesses may have to re-shape and re-design their organisational structure, supply chains, budgets, cash flows and prices which

necessarily mean transitioning from old, established traditions to new practices. Managing this change can be a daunting task. Hence, successful implementation of VAT would require a robust Change Management framework at its core. In practice, each business has a different operational model and requires tailored VAT implementation planning, which should be fully aligned with the operational priorities and risk appetite of the business. VAT promises to have both qualitative and quantitative impact on how an organisation functions. On the qualitative side, the organisations would need to develop and implement proper VAT Governing System which entails: • Hiring of quality staff to cope with VAT requirements; • Changing the work environment and culture where record-keeping is of utmost importance; and • Changing business ethics in a sense that every transaction should be accounted for and properly recorded; On the quantitative side, organisations need to implement appropriate financial and internal control measures to capture the end-toend VAT accounting process. So, an improved tax risk management model should be designed which will provide for periodic testing of controls to guarantee the effectiveness of VAT-critical processes. The VAT implementation planning should focus on both the operation-

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al and technical aspect of the business that must be aligned with the key business objectives of transactional integrity and financial reporting accuracy. Organisations must also set budgets for VAT pay-outs. They need to ensure liquidity as and when VAT payment is due; else they would have to pay financial penalties which would be detrimental to the profitability at the end. The next challenge faced by organisation is to manage change. Implementation of VAT inevitably requires transforma-

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tion. Change in the financial management system, change in the organisational work culture and change in Human Resource Management. However, market researches in the UAE are indicating that most of the businesses in the UAE are far from achieving successful VAT implementation. “Over 60 percent of 100 senior decision makers and finance professionals in both the public and private sectors in the UAE said they have not allocated a budget for the new tax’s application, while 52

percent said they have not set an implementation strategy for the new tax, according to a survey by Dubai-based recruitment consultancy firm Hays.” There are several factors which would cause hindrance to the successful implementation of VAT in an organisation. Most common factors faced by SMEs in the UAE regions are:

Accounting and IT system Good accounting system and a developed IT infrastructure

SME Finance

Businesses have to be more pro-active, lean, economical and ethical to survive in a post-VAT world.

not tailored to the requirement of the business, rendering them unable to handle the VAT complexity.

Documentation Proper documentation is the key factor for the successful implementation of VAT process. A poor documentation of critical VAT processes means corporate record retention requirements have not been considered adequately and may cost the company considerable financial penalties by the tax authorities.

Human Resource

helps businesses minimise the chances of VAT error by incorporating all the required changing as per the legislation and handle complex transactions. Most of the SMEs are using small offthe-shelf accounting systems

In UAE region, companies are not accustomed to the tax regime and thus, never required any tax expert in the business. There is a clear shortage of adequate human resource in the region regarding VAT implementation and compliance. Most of the issues discussed above can be resolved by planning in advance and by allocating appropriate financial and non-financial resources to implement VAT and Change Management. In addition, an organisation has to prepare and adopt a tax management policy and strategy. An effective tax policy is a dynamic framework for leading organisations and is shaped by various internal and external factors. An effective VAT strategy should cover all business locations and should be aligned to the overall business strategy.

Aamish Nawaz, Assurances Services Manager, RSM UAE, handles a large portfolio of Internal and External Audit clients. He is an expert on the RSM Audit Methodology and responsible for inhouse training for the audit methodology and IFRS. Aamish has accumulated a diversified experience of over 10 years in the fields of accounting, auditing and management consultancy as well as in tax laws and corporate laws. He is also a member of the Association of Certified Chartered Accountants (ACCA) of UK, qualified as a â&#x20AC;&#x153;Certified Financial Analyst (CFA)â&#x20AC;? from the USA and received CFA charter as well.

SME Finance

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June 2017

Strategize, Implement, Grow:

Reinventing Business Consulting 18

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Interview

AJATSHATRU SHARMA, Director of Ccerebrate Business Consulting talks to us about the importance and implications of business consulting firms in the region, the management techniques and tools employed by Ccerebrate to figure out business hurdles and process solutions, and the future challenges and opportunities to be faced by the SMEs of the region.

• Could you tell us something about Ccerebrate Business Consulting and its work in the region? Ccerebrate Business Consulting is a firm that brings in proficiencies in strategy and its implementation to bring in real-time financial benefits through the deployment of its indigenously developed engagement model ATA for which operations research forms the basis for delivery. As the UAE market is a potential market now and in the coming years for private and government investments across various fields of construction, manufacturing services, aviation and related industries, we understand that being part of a promising economy will prove to be extremely beneficial for the verticals that avail our consulting services. We have the capability to operate anywhere across the globe and associate with companies willing to bring in sustainable improvements to their bottom-line.

Interview

• What are the major challenges faced by the SMEs in the UAE?

industries you think require business consulting services the most?

Published sources indicate that some time back financing and raising funds for the SMEs were challenging but now, with the governments in the UAE having taken serious initiatives for funding and promoting them, this is a challenge that has been taken care off to an extent. Other issues that are faced by the SMEs are more market driven and focus on how the SMEs can operate at a healthy operating margin. In my opinion, market driven issues and challenges are extraneous and uncontrollable but what is controllable is the operational efficiency that would eventually help to bring in endurance to face the fluctuating market conditions. Even if funding and other benefits are given and the SME is not operationally and strategically aligned, it will tend to become a black hole.

Any industry, irrespective of it falling under a primary or a secondary industry category, could look forward to a consulting engagement to bring in real-time financial savings and a sustainable operational and strategic alignment.

• Which are the primary

• In the current economic scenario, business management and strategic planning have become more important than ever. What do you think has brought about this change and what advice would you give the SMEs who are yet to be aware of this transition? Business management and strategic planning will gain importance in an economy with high level of uncertainty and dynamic market conditions. And today’s global slowdown will affect even the smallest player in the market. Once the planning is correct and the

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strategic initiatives are aligned to the operational outputs, it should be fine to face the market turbulence head on.

• How would you differentiate Ccerebrate Business Consulting from the other firms in the market? The key differentiator is the engagement approach which is primarily focused to develop an Implementable Strategy rather than just a strategy walk-through and implementing the developed strategy for real-time financial benefits. This is where the prospective client will understand the benefits of the consulting engagement and this will only happen once a healthy ROI is delivered through an implementation process.

• How do entrepreneurs and small business owners approach the right type of business consultancy firms? Can you provide them with a checklist that would help them identify the experts and take their business to the next level? There is no checklist for engaging a consultant or a consulting firm. Consulting firms can be engaged by the small business owners for improving the operations, bringing in financial benefits, effectively utilising the funds, improving market pen-

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The only challenge we see is the dynamic and constantly changing market and as we are confident with our work, we would take the challenges more as opportunities and work around them.

etration, improving the brand presence etc. but what is important here is the crystallisation of the business problem that most of the business owners fail to do and that is where the consulting support reaps no results. It is advisable to build the problem statement along with the consulting company hired by the small business owner after a detailed business analysis commissioned by the prospect.

• How important is innovation and technology for the business consulting sector? Business consulting sector is a services driven sector and in my opinion any technology inputs that would result in an effective and responsive client engagement environment would help. As Ccerebrate, we did take an

initiative for launching a mobile app named “PROD 24X7” for bringing in ease-of-connect with the business owners and also to save time while travelling.

• The process of business management covers several important aspects – operational, strategy, finance, change management, employee performance – and more, to develop a sustainable and profitable enterprise. Does Ccerebrate have a common business approach that covers all these aspects for business efficiency? Basic management science can never be changed, it is all about how one delivers and

Interview

through our engagements in India but again this cannot be generalised for all businesses.

â&#x20AC;˘Can you share your thoughts on the future challenges/opportunities in the region and how does Ccerebrate plan to face them? brings in real-time benefits that can be measured more effectively. Our engagement model ATA brings in the strength of operations research when it comes to building and synthesizing the business problem which is the most critical stage for any consulting engagement and this is where we can clearly differentiate ourselves.

â&#x20AC;˘ Can you share some of your key initiatives/

Interview

actions that have had a significant impact in the growth and productivity of business enterprises? Well, that would be inappropriate to highlight in this manner as the initiatives/actions are more client specific whether it is from a business analysis pointof-view or from an implementation perspective. But as a ball park, we can say that we have been able to contribute more than 30% to the bottom line

The only challenge we see is the dynamic and constantly changing market and as we are confident with our work, we would take the challenges more as opportunities and work around them. Once we engage with a prospect in the region, we would be able to show substantial results and more importantly bring in a sustained change within the prospectâ&#x20AC;&#x2122;s business environment rather than a shock wave improvement that is more likely to die out after a period of time.

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Entrepreneurship for UAE Millennials Most surveys state that millenials are the most entrepreneurial generation ever; but with a tough economy standing in their way and the government issuing new rules and regulations, success can be tricky to achieve. In this article, Dr. SHANMUGAN JOGHEE opens up as to why UAE can be considered as one of the best countries for a millennial venture and key factors that can help them achieve their dreams.

ntrepreneurial vigour is not limited to establishing own business systems only; itâ&#x20AC;&#x2122;s equally significant while in employment as everyone can become intrapreneur and help the company to grow in new areas. The system and academic culture is changing from grabbing employment to gradually venturing towards entrepreneurial activities. The major upheavals in industries like crude oil, information technology, medical and tourism etc., have created many opportunities both for intrapreneurship and entrepreneurship. These opportunities have provided platforms for converting dreams into reality and to get crowned

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June 2017

Future Entrepreneurs

Dr. Shanmugan Joghee, Associate Professor at Skyline University College has been associated with Skyline since September 2008. He is also the Associate Editor of Skyline Business Journal. He obtained his PhD from Bharathiar University, India and did his MBA from Bharathidasan University. He has successfully completed the GMP program from the reputed IIM-A, India. Dr.Shanmugan teaches marketing systems and general management courses.

as young millionaires and billionaires. Educational institutions specifically in the areas of business and technology have set up incubation centres with the help of corporates to educate and guide youngsters for their entrepreneurial ventures. UAE is known as the country of opportunities; the word â&#x20AC;&#x2DC;DUBAIâ&#x20AC;&#x2122; has become synonym of employment for everyone. There are a few places in the world which can match the employment growth rate in this country. Opportunities have been created and expanded by businessmen venturing from different countries and staying as expats in the UAE. The present situation provides novel opportunities for entrepreneurial ventures in the UAE and Middle East for both, the expatriates and local citizens. There are a few factors which make UAE one of the attractive grounds for entrepreneurial ventures:

Unique geographical position UAE is at an advantageous situation due to its geographic location. India and Africa are the most promising economies in the next decades in terms of growth, potential, and demographic dividend. UAE has the geographical advantage of being situated in the middle and in close proximity of both these geographical regions. It enjoys cordial relationship with most of the countries in Africa and Indian subcontinent, hence providing a golden opportunity to develop trade and promote services.

Future Entrepreneurs

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June 2017

Medical tourism, entertainment, retail, and trade are areas where innovative approaches can produce wonderful results.

Robust infrastructure UAE has one of the best road, air, IT and power infrastructures in the world. Railway for GCC is likely to become operational within the next few years. With the advent of railway, UAE will benefit from a less expensive lifestyle, furthering lower interest rates, consequently rising consumption, thus revolutionising the business dynamics.

Legal system UAE is one of the countries which can be proud of their fast judicial system. The government allows a 99-year leasehold of real estate properties, which is in tandem with global practices. It gives sufficient stability to businesses for establishment and development, though the procedure of licensing businesses needs further simplification. The simplification of licensing for trade and businesses will go a long way in providing that extra boost to the regionâ&#x20AC;&#x2122;s economy.

Financing UAE provides ample oppor-

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tunities for business financing. There are many sources of financing including international & regional banks, non-banking financing companies and venture capital houses. The business model is rapidly changing and the introduction of VAT will generate revenue for the country, and eventually the government & financial institutions will begin pumping the money into the market. Accounting methods in the UAE are in sync with global practices, which make it easier for expatriates and international organisations to set up and carry out their businesses smoothly. All the above mentioned facts indicate towards the business opportunities in UAE in the coming years. UAE as a nation has a conducive environment & it is a land of services. In the current scenario and in near future, services have a huge scope of growth in the country. Medical tourism, entertainment, retail, and trade are areas where innovative approaches can produce wonderful results. The local manufacturing sector can also create ample opportunities by utilising advanced logistics

and supply chain management practices. A rapid growth in intelligent scores and innovation across sectors are the driving forces behind millennial entrepreneurs that help them utilise their entrepreneurial talent irrespective of potential risk associated with any particular business.

Future SMEs and start-ups have a substantial role to play in the development of a nation, and our millennials very much fit into this diaphragm. An SME enterprise can be started with even 20-30 employees and can play big role in services. Looking at the present operations of SMEs in the UAE, it seems that the sector is doing well and a few issues like funding and operational processes need to be taken care. A focus on quality, competitive salary structure, good working environment and an entrepreneurial culture among the UAE nationals and residents will increase the scope and synchronize with the existing strategies of UAE development.

A person who never made a mistake never tried anything new - Albert Einstein

Future Entrepreneurs

Interview

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Collaboration Tools: Combatting the Competition Every business, big or small, uses conference rooms for team meetings, brainstorming sessions, training sessions, customer forums and organisational conferences. In the past, the amount of money spent in information communication technology used to determine a companyâ&#x20AC;&#x2122;s competitiveness level in the market. Better communication and collaboration tools meant more business velocity, less travel costs, increased productivity, and faster innovation. However, as technology becomes more affordable and accessible, it is time for small and medium-size enterprises to collaborate and fight back. MARC-ALEXIS REMOND explains.

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Collaboration

While technological innovations make it easier now for any organisation to adopt new communication and collaboration solutions, meeting participants still waste up to 20 percent of video meeting time on technical issues around preparation and connectivity.

Competitiveness and Technology The innovation war is still on, but the difference is that smaller businesses have now access to the same arsenal to increase their competitiveness. For the past 20 years, large companies have had access to advanced collaboration technologies to reduce travel costs and boost productivity resulting in increased competitiveness. They have invested in monolithic hardware-based video solutions which require huge IT investments along with a team of experts to manage a very complex infrastructure. Small and me-

Collaboration

dium enterprises did not have the resources to enjoy the same types of collaboration tools. But things are changing fast. Communication and collaboration technologies are now available in the form of software on desktop and mobiles devices and delivered from the cloud. Some are free of charge (Microsoft Skype, Google Hangout, WeChat, Line, ooVoo) and others require a monthly subscription to a specific service (Microsoft Skype for Business, Amazon Chime, Zoom, Bluejeans). As a result, it is now possible for small and medium-sized business to equip their teams with the same communication tools on desktop and mobile devices

to compete against larger players. However, when it comes to using them in the conference room, they face some challenges. Hereâ&#x20AC;&#x2122;s why.

Workspaces and Collaboration Conference rooms have been around for a very long time. Work styles have changed significantly but the designs and technologies used have been the same for too many years. According to Wainhouse Research, out of the 12.5 million conference rooms worldwide, only three percent are equipped with traditional video conferencing today. High equipment cost has been the main barrier to technology deployment

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especially in smaller meeting spaces. Moreover, 97 percent of those rooms are only equipped with a display and a telephone. While technological innovations make it easier now for any organisation to adopt new communication and collaboration solutions, meeting participants still waste up to 20 percent of video meeting time on technical issues around preparation and connectivity. In today’s digital age, this is simply unacceptable. Technology should help your business and not affect productivity and performance. So, let’s take a closer look at some of the problems faced by employees during meetings.

Problems faced by Users After carefully listening to end users, observing meeting participants, and analysing various industry reports, we have been able to identify six recurrent and endemic problems faced by teams that you should be aware of:

laptop to attend web and video conferences. Therefore, people have to squeeze in front of the webcam and microphone to be heard and seen affecting the virtual meeting experience. Those staying off camera end up multitasking and being less engaged compared to others. • Monolithic collaboration solutions: Customers are tired of investing in collaboration systems that can only be used for one thing. Too often, audio, web and video conferencing solutions are built in silos and are not interoperable. • UC and workspace strategies: Employees are equipped with unified communication applications across all their devices except the one in the conference room. They get frustrated when forced to use yet another system with a different interface. Time is becoming a rare commodity, so is the patience of a user.

• Cables, adapters, and screen resolution: Time is wasted because presenters struggle to find the right adapter or cable to display the document on their laptop or simply because they cannot adjust screen resolution and image quality.

• Social media applications: Younger generations love social media and mobile applications. They want to use them at work too, to be as productive as they can be. Yet, various compny policies forbid the use of consumer and social media applications such as Facebook Messenger, WhatsApp, Line, and WeChat.

• Laptops for team collaboration: Efficiency is impacted because participants use a

• Real-time information sharing: Companies invest a lot in applications to access all kinds

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of data in real-time, but sharing such data in a team meeting is often a problem. Users need to be able to access such data using the system in the conference room for everyone to see and be on the same page.

Smarter Collaboration for SMEs There is a new generation of smart collaboration systems designed to make team meetings more participatory, effective and collaborative. Designed by Nuage Solutions in Singapore, ROOMIE® is a range of ‘open’ (i.e. platform and service-agnostic) collaboration systems running on Windows 10 Pro allowing employees to access to any consumer or enterprise applications; wirelessly share data from any device; start chat sessions; join virtual conferences (audio/web/video) and stream media in any meeting, learning or training space. All ROOMIE® models come with business-grade camera, microphone and speakers providing an enterprise-grade collaboration experience. They leverage the power of software and the cloud and are available at a fraction of the price compared to traditional hardware-based solutions. SMEs can use ROOMIE® Smart Collaboration systems together with free cloud-based services like Microsoft Skype or Google Hangout or professional subscription-based UCaaS or VaaS offerings.

Collaboration

Zoom Bluejeans

Polycom Lifesize

Cisco

Microsoft

Avaya IBM

Vidyo

Alcate-Lucent Broadcom

ShoreTel

Deltapath

Go-To-meeting PexIP

WebEx

Join Me

Line

Video Chat

KakaoTALK YouTube

LIVE

Workday

AT&T BT

WeChat

Livestream

Adobe Connect

Verizon

FB Messenger

Hangouts

Unified Communication Video Conferencing

Global Meet

Mitel

Skype

Media Streaming SalesForce

Web Conferencing

Spotify Oracle

Enterprise Applications

Audio Conferencing

Conclusion Today, the pace of business is much faster. Marketing timelines and product lifecycles are shorter than ever. The world is an increasingly complex and competitive place where productivity and innovation are vital. Succeeding in this highly competitive world requires people – everywhere – to work in a

highly collaborative fashion. The good news is that even small and medium-sized businesses can fight back and make a mark without having to spend huge sums of money in technology. They just need to choose the software, and a cloud-based and open smarter collaboration system for all their meeting, learning and training spaces. It is also important to empower

one’s team to use the collaboration tools they need to unleash unprecedented waves of productivity and innovation. If you want to know more about smart collaboration solutions, you can contact me at marc@nuage. sg or check our website at www. nuage.sg.

Marc-Alexis Remond is the Managing Director of Nuage Solutions (www.nuage. sg) that designs innovative solutions for unified communication, collaboration and security for enterprises, governments, healthcare providers and education institutions. Prior to Nuage Solutions, Marc has had extensive experience in Polycom and Alcatel-Lucent. ROOMIE is the smart collaboration solution of Nuage and is exclusively distributed by TechSutra in the MENA region.

Collaboration

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The Sharing Economy

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Cover Story

While it has been only a few years since sharing economy has gained prominence in the Middle East, this economic term has existed since 2009. This article attempts to explain the origin of the term, its impact on the socio-politico-economic framework of the region, and the benefits and challenges that accompany it. By AURITRI CHATTERJEE

he global economy is at a stage of disruption; and one of the major trends leading this disruption is ‘sharing economy’. Also known as collaborative consumption, collaborative economy, platform economy, peer-to-peer economy, and asset-light lifestyle; sharing economy has become a major global phenomenon redefining consumer behaviour and business stratagems. Given its impact in the US, UK and other developed economies, the benefits and opportunities created are undeniable. However, the sudden advent of the sharing economy in the emerging economies has begun to introduce many unforeseen challenges for consumers, incumbent businesses, regulators and policy makers.

What is Sharing Economy? It is interesting to note that even though the concept of

Cover Story

‘sharing economy’ has multiple terms, there is no single definition that can grasp the enormity of it all and has no shared definition with its alternative terms. The term was first introduced into the Oxford English Dictionary in 2015 reinforcing that the word is here to stay. But what has happened along the way is a dissection of what the sharing economy actually is, and what it is not, giving rise to increasingly confusing terminologies and explanations. As Rachel Botsman says, “Many terms are being used to describe a broad swath of start-ups and models that in some way use digital technologies to directly match service and goods providers with customers, bypassing traditional middlemen.” However an accepted terminology of sharing economy is “an economic system in which assets or services are shared between private individuals, either free or for a fee, typically

by means of the Internet”, implying that sharing economies rely on individuals/consumers using under-utilised assets as shared services.

Sectors and Examples Sharing economy has the potential to impact across sectors. Travel in particular has been a sector revolutionised by it, and a proven example of this disruption is Airbnb. In 2008, Airbnb began as an online marketplace where people could book accommodation at other people’s apartments and homes for a fee; it didn’t require a shop or any other forms of physical infrastructure, and all sorts of communication and transactions were done through the Internet. Today, after nine years, the company has over 3,000,000 lodging listings in 65,000 cities and 191 countries; and the cost of lodging is set by the host. Another primary example of sharing economy has been Uber. Started in 2009, Uber has been a pioneer of sharing economy, where

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people would book rides on the app or the Uber website and share fares while travelling to a common destination. Such has been the impact of Uber in the transportation industry that the resulting changes have been termed as ‘Uberification’ or ‘Uberisation’. Following are some common examples of sharing economy in the US: • Hospitality and Dining: CouchSurfing, Airbnb • Automotive and Transportation: Uber, Lyft, BlaBla Car • Retail and Consumer Goods: Snapgoods, Tradesy

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• Media and Entertainment: Amazon Family Library, SoundCloud

Sharing Economy in the Middle East The Middle East, however, has been tiptoeing around sharing economy, and though it is a huge supporter of innovation and digital transformation, is still not comfortable to open doors to strangers. Consumer preference along with the country’s unique laws, regulations and traditions, has been instrumental in the cautious approach towards sharing economy. Add to that the indisposition of locals sharing their homes and beds

with strangers, Airbnb might have entered UAE but it’s still a long way to go before this global disruptor makes any significant local impact. This leads us to the other bigwig of the sharing economy – Uber. As mentioned earlier, Uber might have been a global pioneer in the ride-sharing industry, however, it entered two years too late in the UAE and by then, Careem had already made its mark in the region and among the people. Homegrown, Careem also thrives on the local entrepreneur sentiment and is viewed as the familiar option by the Middle East people than the foreign Uber.

Cover Story

However, let us not jump to the hasty conclusion that the Middle East is not prepared for sharing economy at all. The retail and fashion industry is one space the local consumer has always been enthusiastic about; and rental stores like The Luxury Closet, Shedd, and even Dubizzle and Souq are stepping stones to sharing economy. In fact, the fashion industry in UAE is ripe for sharing economy with a millennial customer base that wouldn’t fork out huge amount of cash for material possessions but wouldn’t mind renting out one occasionally. It is important to understand that these new and growing peer-to-peer marketplace and services does not eliminate the traditional methods of services. Instead, it presents new opportunities for governments and communities alike to collaboratively think of ways to achieve business and consumer expectations. According to Prof. Arun Sundararajan, “One of the ways to do this is crowd-based capitalism.” When businesses start mass-manufacturing digital products, like smartphone and social media, inbuilt with GPS and high-speed Internet for regular consumers instead of business users, then it is required to understand what the crowd wants and reengineer products and services accordingly. Crowd-based capitalism is also essential to build an ecosystem of trust, especially in an economy that facilitates peer-to-peer exchange. These

Cover Story

exchanges are not just modest, day-to-day essentials; it’s getting into a stranger’s car to be taken to a specified location or letting someone you don’t know enter your home and give them your house key. These are highrisk activities and so, the level of trust also needs to be higher to make these kinds of activities viable at such a huge scale.

Benefits of Sharing Economy • A shift in trust to community Sharing economy has always been with us. You might call it cost-sharing, bartering, or anything else, people and communities have always based their livelihood and social interactions on sharing. It isn’t new; however, the Internet’s ability to let us communicate efficiently and quickly to a wider audience definitely is. And with an increase of honest peer reviews and product recommendations, people are starting to trust each

other again.

• Renting unused assets Most small businesses, especially in their early years, look for ways to minimise their cash flow and fight for survival. Business experts like Eric Wagner cite cash flow problems as one of the major reasons for failed businesses. In such a scenario, if small businesses turn their unused assets into cash flow, it can definitely brighten things up. For example, a couple of free cubicles can be rented out to freelancers or as shared workspace; unused parking lots can be rented out on a monthly basis; etc. Similarly, depending on their needs, businesses can also rent equipment instead of buying and save valuable money.

• Flexible work environment The emergence of sharing economy has led to an increase in freelancers and contract employees that has in turn resulted in increased flexibility of work hours and wages. The change is apparent in government as well as corporate

It has created quite a disruption and the regulators and companies seem to have woken to the implications of it all.

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enterprises and range across the occupational spectrum, from low-skilled work to expert services.

Challenges of Sharing Economy • Lack of regulations The sharing economy is still

at a very nascent stage and with digitisation transforming everything, the line between professional and personal information is almost blurred. Add to that the critical aspect of cyber-security and the governments have their hands full. It’s immensely important to write down new policies and implement stricter regulations that would benefit both, consumers & businesses.

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• Addressing grievances A major chunk of consumers are apprehensive of sharing economy being able to offer quick and effective resolutions in case of disputes between providers and consumers. As most of the functionality is virtual, people have reservations

about a fair outcome in case of any sort of complaints.

• Concern regarding personal safety Most often than not, the sharing economy thrives on freelancers and contractual employees, which makes it difficult for businesses to track them at all times. Customers have regularly felt susceptible and

vulnerable in various situations, and wonder whether the service providers can be trusted. Several question whether the employees have undergone background checks. The sharing economy is the latest example of the Internet’s value to its consumers. It has created quite a disruption and

the regulators and companies seem to have woken to the implications of it all. Not only is it a sign of immense potential, it is time to actually start caring about sharing.

Cover Story

Social Commerce & Opportunities for Businesses Social commerce represents the next great opportunity for today’s businesses. SIRISH KUMAR explores the dramatic shift towards social media adoption, especially among young consumers and how brands can utilise this opportunity to transform their consumer base.

ocial media in the UAE is a phenomenon. There’s really no other way to describe the way that this country’s population has taken to social media. The most often repeated statistic is around Facebook’s penetration rate – an estimated 90% of Internet users in the UAE have an active Facebook profile. That’s amongst the highest rates of active use anywhere in the world. But it’s not just confined to Facebook – although Twitter has not yet been able to match Facebook’s ubiquity, the country has eagerly adopted Instagram and Snapchat. We now see many entrepreneurs in the fashion and cosmetics industry

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start their business by opening a shop in Instagram. What drives this? Do we just love to communicate, or is there more to be understood at the heart of the numbers? And what does this mean for businesses in the UAE and beyond? Demographically, the planets are perfectly aligned. In common with much of the region, the UAE’s population is relatively young. In stark contrast with the ageing populations of Western Europe, around a third of the population of the UAE is under 25 years old. They are wealthier too, with income levels running at double those of our neighbours in Saudi Arabia

– even though Saudi Arabia’s economy is bigger. Social media adoption goes hand-in-hand with smartphone use- it’s the quintessential mobile medium, rapid-fire and image-rich-and here too the UAE is a world-leader, with one of the highest adoption rates of smartphones to be found anywhere. GfK’s Connected Consumer Index in 2016 put the UAE third globally, just behind Hong Kong and the US. And our youthful, wealthy, tech-loving population is concentrated in urban centres with comprehensive 4G coverage. It’s really not surprising, then, that as a nation of communicators we’ve

Digital

embraced social media. So why, as a nation of business-people, have we so far failed to take advantage of the commercial opportunities this presents? Why are we not yet setting an example for the world in how to sell through social media? Possibly the answer lies with the social media channels themselves. Even if we don’t consciously articulate it, as Internet users we understand that there’s a pay-off with the websites that we use. Visiting news sites, we accept that our free content is funded by ad revenue. Visiting social media sites, the contract becomes significantly more in-

Digital

timate – we use their platforms for free, in exchange for providing them with monetizable personal data. This contract may be understood, but it’s not always embraced – studies repeatedly show that social media users are just not comfortable enough with handing over their financial data to social media providers. More likely, though, the answer lies with the online merchants themselves. Brands have long understood the power of social media in being able to reach an audience and engage in a more meaningful way. Are they aware, though, that these same channels can be used to sell products and services with

as much ease as publishing a post? Perhaps not. For brands, social media is an enticing proposition. The Mary Meeker 2016 report shows that offline retailers like Nike took double the time (10 years) taken by online retailers to record

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Sirish Kumar is the CEO and Co-founder of Telr, an international e-payment solution for businesses to easily and securely accept and manage online payments. A seasoned C-suite executive, Kumar is widely acknowledged as one of the most distinguished finance professionals in the industry. With an unstinted focus on emerging markets and SME businesses, Kumar spearheads Telr across Middle East, South Asian economies and in India.

the same volume. Social media offers an opportunity to be where their audience is, rather than try to persuade that audience to come to the brand’s own properties. It holds the promise of reach – even if brands quickly discover that building an audience in social media isn’t quite as cheap as you’d initially think. And vitally, it offers a way of getting a message to an audience that increasingly chooses to ignore the more traditional digital marketing tactics, such as banner campaigns. And now we are at the stage where brands can directly monetise the same social media channels where they have invested so much on audience creation. Social commerce is here, and entirely accessible. Merchants using payment aggregators like Telr can create images, QR codes, and quick links to use within social media and channels like WhatsApp. Their customers receive the links, and with not more than one click can complete their payment process - the link takes the buyers straight to a payment page. It is a simple process for consumers, even the less tech savvy ones, and decreases the

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We are at the stage where brands can directly monetise the same social media channels where they have invested so much on audience creation.

probability of buyers dropping off as the element of impulsiveness remains high. What’s more, the customer data exchanged outside the social media channel is in a secure environment. So far so easy. But so what? Why does social commerce have the potential to transform how brands sell to their customers? Firstly, everyone’s there. It’s the uber-mall, with a whole country’s footfall. This has the online population, much larger than the online buying population. Certainly, it’s a lively place, and cutting through all the noise to find your audience can often be costly. But it holds the promise that to reach and harness the power of the crowd is just as possible for the smallest retailer

as much as it is for the multinational brand. And quite possibly more so, as more nimble SMEs are able to react quickly and use social media channels to effectively shift inventory. Secondly, it’s an impulsive, visual environment, behaviourally well-suited to shareable time-limited offers. Again, the impact of social commerce on how brands compete comes back to being able to effectively manage stock in real-time. A brand’s online payment aggregator can be connected to its inventory management software, and so this becomes an extremely powerful medium of an ‘online payment plus’ solution. We anticipate that this alone will trigger more SMEs to have

Digital

an online presence (in 2015, less than 18% of SMEs in the UAE had an online presence). But above all, it’s the fact that the social media platform has already done all the hard work, in creating an ecosystem for brands to stake a presence and make sales, that makes social

media so alluring and so potentially transformative. No longer does a retailer need to create an e-commerce website in order to sell online. In one location we have a shop front, an audience, a selling mechanism and an advertising channel. Banner blindness is no longer the issue

– and an international, cross-border consumer base is as within reach as a domestic one. So where does it go from here? Apart from businesses across an all-encompassing range of sectors realising that this channel is entirely within their grasp, there needs to be consumer acceptance of the channel as a purchasing platform. That’s a factor of time and trust, both of which can be accelerated by the UAE’s SME e-commerce sector moving to explore and embrace the opportunities that social commerce offers. Social commerce needs to be just another part of our ecosystem – and with SMEs working with online commerce enablers like Telr, we can make that happen.

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Feasibility Study for the F&B Industry LOVE MANSUKHANI talks about the significance of a detailed & thorougly thought-out business plan and feasibility study for an entrepreneur to achieve success in the food and beverage industry.

t is far too many times that one hears about restaurants in the UAE closing doors within the first three to five years of operations. While there may be several factors leading up to such situations, we strongly believe one of the key reasons why these businesses fail is due to lack of proper planning and execution. This is most often the case with first time restaurateurs that have the passion for the world of food and beverage, but lack the guidance in successfully creating a brand and a business model that is not only unique, but also sustainable. On the other hand, larger corporate players are not only able to enter the market with ease, but also survive downturns in their businesses, due to their

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larger resources and higher risk appetite. We believe it is critical for first time restaurateurs that are keen on entering the F&B space to invest in a detailed business plan and feasibility study. Doing this ensures that they understand every aspect of the industry, their competitors, the concept they are intending to launch and most importantly the financial requirements and viability of the business. Most investors tend to do a back-of-the-envelope analysis for the total investment or capital required and the expected future returns. Not only is this risky on a financial front, but also results in the investor remaining unaware of operational requirements of an F&B business; which, in many

cases, they are not prepared for, despite their large financial appetite. However, it is not difficult to make an effective business plan for setting up a new F&B venture, provided the given information is credible. We believe there are a few important components that every budding restaurateur should include in their business plan. The first is to conduct research, either primary or secondary, at both country and industry levels. Gathering data about the countryâ&#x20AC;&#x2122;s macroeconomic facts will help the investor understand the overall potential, saturation levels, trends, entry and exit barriers, regulations and requirements etc. in order to define the overall development strategy

Feasibility

of the business. Furthermore, the investor must also study the food and beverage industry within the country to gauge the potential of a given concept in that market and the challenges they might face. It would also be wise to educate oneself on international trends in the F&B segment, in case they plan on implementing any in their concept. The investor must then define the key/salient features of the

Feasibility

concept they wish to launch. This includes defining the target segment within which the concept would be positioned; such as fast food, quick service, fast casual, casual dining, fine dining etc. Other identifying features include the type of cuisine, target market, operational workflow, the general look and feel, and the target price point of the concept. These features will determine the overall positioning of the brand within the industry,

particularly amongst its peers. Speaking of peers, any business plan is incomplete without a competitive analysis study. Understanding the competitive landscape on a macro- and micro-level will help the investor position their concept appropriately. This requires the key direct and indirect competitors to be identified and their key features, strengths and weaknesses to be studied. This information should then be further utilised to develop the conceptâ&#x20AC;&#x2122;s

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Love Mansukhani is the Founder and Managing Director of Ribbon Consulting and set up the company in 2012. An accomplished restaurant developer, operator, and business manager with over 15 years of hospitality experience, Mansukhaniâ&#x20AC;&#x2122;s diverse network of industry contacts and investors across the UAE has helped drive Ribbon Consulting to be the successful hospitality firm it is today.

competitive strategy along with a detailed SWOT analysis of the concept to be launched. All of the above qualitative information will form the core of the most important part of the business plan and feasibility study i.e. Financial Outlook and Projections. With the data compiled from the initial research, the competitive analysis, and the agreed upon concept and positioning of the brand, a detailed financial projection model must be built. Key revenue assumptions to consider should include the size of the outlet, the seating capacity, operating hours, average optimum daily revenue, and seasonal trends. Furthermore, the major operating costs should be estimated using a combination of industry averages, actual quotations, and further research and analysis. A detailed profit and loss statement, supplemented with a cash flow statement and balance sheet for a period of at least five years must be built out, based on an agreed upon development/roll-out plan, to provide the investor a clear snapshot of expected returns and growth potential. An investment budget must be outlined detailing the initial investment required along

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Understanding the competitive landscape on a macro- and micro-level will help the investor position their concept appropriately.

with the operational and working capital requirements during the initial years of operation. Some of the areas that most investors tend to get confused are pre-opening versus post-opening expenses, capital expenditures versus operating expenditures, corporate level expenses versus working capital requirements and so forth. It is at this stage of developing the financial model, that all such doubts should be clarified so there are no surprises once the project execution has begun. Finally each concept requires its own dedicated marketing strategy. A critical element for the growth of any business, marketing, is often underestimated and does not get enough attention until much after the

business has begun operations. In our experience, a well-defined marketing and PR plan, executed right from the onset i.e. launch of business and early operating period, produces the best results in terms of building and retaining a customer base, building brand loyalty, and positioning the brand well in the market. Going through the above process is crucial for any new investor to ensure a proper strategy is in place before they begin their new venture. While this does not guarantee specific profits for the business, following these steps, we believe, result in a higher chance of success for the new business venture, particularly those that are first timers in the F&B segment.

Feasibility

The Disruption of Digital Business Models This article by MOHAMED KHAN delves deep into the world of Middle East SMEs and elucidates the catalytic effect start-ups have on AI, Blockchain, IoT, and Machine Learning innovations in the region.

With SMEs accounting for more than 80 percent of businesses, and majority of employment and job creation opportunities, they are the powerhouse of the Middle East’s digital economy. But as the Internet of Things era accelerates, SMEs face increasing urgency to undergo digital transformation to drive business success and innova-

Disruption

tion, and transform the region’s economy, society, and environment.

Simplifying SMEs to Boost Growth As SMEs expand to new countries, they face legal, tax, regulatory, and operational requirements. While SMEs have been able to struggle along

with out-dated methods, today’s digital economy requires SMEs to overcome complexities to grow and prosper. Middle East SMEs should simplify and streamline business processes to scale up and enhance competitiveness. While simplification is easier said than done, it must be at the core of every Middle East SME’s growth strategy. Take talent development. When

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Mohamed Khan is the Channel Head at SAP Global Partner Organization, MENA. SAP is a digital transformation enabler and 80 percent of its 350,000 worldwide customers are SMEs.

a business starts, a small set of staff knows customers, and they can use spreadsheets and disparate software programs. But this method is unwieldy, cumbersome, and counterproductive â&#x20AC;&#x201C; and will hold back business success and force executives to train new personnel. Now, Middle East SMEs cannot rely on slow legacy systems to interact with customers in real-time. In many industries, new companies with superior technology are beating established firms, thanks to real-time data on inventory, sales, and marketing leading to better and faster decision-making.

Does Company Size Matter in the Digital Economy? By embracing digital transformation, SMEs can gain a significant competitive advantage. While small business owners cannot easily experiment with new business models, they can determine how digital technologies â&#x20AC;&#x201C;mobility, analytics, and social media -- can help them achieve business goals. Simplification can lead to

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better customer experiences and retention, higher profits, lower costs, greater employee engagement and retention, and increased operational efficiency. SMEs can react faster to market changes and customer needs, lighten employee workloads, and accelerate innovation and time-to-market. Mobile apps can persuade millennials to buy local. Cloud-based tools can help small contractors to out-price competitors.

Benefits of Cloud ERP for Small Busines One of the biggest game - changers for Middle East SMEs is replacing bookkeeping records and spreadsheets with automated enterprise resource planning (ERP). The right ERP solutions can improve the quality, consistency, and delivery of products and services. Think better inventory management, data access, collaboration, and customer service. And hosting ERP in the cloud can reduce costs, scale up, and improve security. SMEs that are considering adopting cloud-based ERP should study four key benefits:

1. Security - While some SMEs are concerned about data vulnerability, most SMEs trust the cloud for their data. 2. Productivity - Disruption of work following a technology move is only temporary. Moving to a cloud-based platform increases productivity with easy and real-time collaboration. Less time for tedious processes means more time for innovation, which is what every organisation should pursue in the digital economy. 3. Costs - Compared to the implementation and maintenance of an in-house IT system, cloudbased business applications and data storage costs less than initial on-premise investments, and is more cost-effective in the long run. By charging only on an op-ex basis, cloud ERP is more economical for SMEs than systems that require expensive licenses and constant hardware and software upgrades.

4. Agility - Cloud enterprise resource planning provide the flexibility, accessibility, and mobility over legacy systems. Deploying tasks is quick and

Disruption

Startups Drive Internet of Things Innovation

One of the biggest game-changers for Middle East SMEs is replacing bookkeeping records and spreadsheets with automated enterprise resource planning (ERP).

easy on a system that is always online and administered offsite.

Channel-led Approach meets Middle East SME Needs For SMEs, it can be daunting to begin digital transformation. The first step is to find the right channel partners that are aligned to their industry and solution needs, and have the specialised training and certification with vendors. As one of the world’s leading digital transformation enablers, SAP is committed to supporting SMEs – with an increasing number of Middle East SMEs running their business applications on the in-memory SAP HANA platform, the SAP S/4HANA real-time business suite, or the SAP Leonardo digital innovation system. One of the UAE’s up-andcoming transport and logistics companies, Bion Group, formerly Tarwada Cargo Transport deployed real-time truck analytics using GPS technology. The

Disruption

automated fleet management system facilitates real-time, accurate and reliable data analytics, and empowers logistics operations with robust tracking tools, secure on-time deliveries, and enhanced customer service experience. Qatar’s Abdullah Abdulghani and Brothers Co. WLL is revamping its back-office and front-office processes with dealer business management solutions, integrating and simplifying sales and warehousing to focus on customer demands. The company is delivering shorter queues, better visibility on spare parts, and enhanced invoicing. In the Kingdom of Saudi Arabia, we are partnering with many of the leading organisations – including the national carrier SAUDIA and communications company STC – to deploy business solutions to SMEs that will help them to enhance their supply chain, sales and financial management, and talent development.

The Middle East is posting strong interest in innovations, blockchain, artificial intelligence, and machine learning. Dubai government agencies are piloting blockchain for more efficient and secure government Smart City services. Saudi organisations are adopting machine learning to predict new business models and enhance research and development, in line with Saudi Vision 2030. Artificial intelligence is transforming industry verticals, with one recent industry survey showing two-thirds of Middle East healthcare providers would replace a human clinician. While government strategies underpin these advanced technologies, the innovation has to come from SMEs – particularly ambitious start-ups with local experience. Supporting Middle East entrepreneurs, our Startup Focus Program has seen strong success on inspiring analytics start-ups. Over the past year, SAP engaged with more than 950 innovators in the Middle East, with 12 start-ups currently building their success on our platform – and many already scaling up. Never before have had Middle East SMEs faced such massive challenges in going digital so fast – or such great opportunities to scale up and beat their competitors. With 73 percent of global SMEs meeting or exceeding expectations with digital transformation, Middle East SMEs need to invest now in their digital transformation.

Intelligent SME

June 2017

Decoding the True Cost of an Employee As an employer, the true cost of hiring an employee is more than the wage or salary offered by the organisation. In this article, ROHAN NATHAN explains where additional costs exist, and how to account for them.

he analogy of an iceberg, demonstrates the observation that in many cases only a very small amount of information is available and the real information or bulk of the data remains unnoticed. This principle holds true for businesses who inaccurately record the cost of their employees. The article below demonstrates how employees cost companies between 25% - 50% higher than their monthly salary might suggest. In the UAE, businesses face several costs when employing an individual. These costs are made up of visa charges, government fees and federal labour

Intelligent SME

June 2017

regulations, yet most businesses do not take them into account when factoring the true cost of an employee to their organization. Let’s take the example of an employee who earns AED 12,000 a month, split 50 -50 into Basic Salary and Allowances. A business can expect to incur the following costs over a year.

Indirect Employee

CostsAmount (AED)

Visa + Government Fees

10,500

Medical Insurance

2,600

Annual Air ckets

2,500

Paid Annual Leave

12,000 (1 month of Paid Leave)

Gratuity

8,400 (Per Annum)

Paid Sick Leave

6,000 (15 days of Paid sick leave)

Total Indirect cost

AED 42,000

A total indirect cost of AED 42,000, translates to AED 3,500 per month on top of the employee’s salary. An employee who is costing the company AED 12,000 in salary actually costs them a combination of ‘Salary + Indirect cost’ i.e. 12,000 + 3500 = 15,500 per month. It means that the employee’s true cost to the company is a staggering 30% higher! Apart from this, companies also incur other employment costs that fall into several broad categories:

Recruiting expenses Sourcing qualified staff who can be effective resources for a company is not easy. It is important that companies take time to hire the best people for their business. It’s a time consuming process and costs the company money. Organisations might also choose to use the expertise of a specialised recruitment firm, whose fees can range anywhere between one – three months of the employee’s salary for a successful placement.

Office space Unless the role you are hiring for is an outdoor salesperson, companies

Human Resources

Instead of figuring out each cost component separately you can use a simple method to anticipate the true cost of an employee for your organisation.

need to account for the cost of physical space to house the new employee. The rent per square foot varies depending on the location of the facility. Typically, an employee will require 150 square feet to function effectively and comfortably.

Other equipment A basic requirement for companies these days is to provide their staff with a computer and telephone. Even with decreases in PC prices, companies can spend between AED 2500 – 5000 on a computer with software and an additional AED 750 on a telephone including installation. Don’t forget the periodic expensive

upgrades you will need for your LAN and voice mail systems.

A simple way to keep track of the cost Instead of figuring out each cost component separately you can use a simple method to anticipate the true cost of an employee for your organisation. Taking the employee’s salary and multiplying by 16 months will give you a close estimate of what you can expect to spend on that employee over the course of a year. i.e. Employees Salary x 16 / 12 = Estimated Annual Cost Although this "rule of thumb" is helpful in planning rapid growth,

like any rule of thumb the underlying assumptions need to be rechecked periodically, so as to not underestimate the cost of your employees. Recruiting employees is always a difficult and important activity, especially in a rapidly growing market like the UAE. Businesses can consider outsourcing non-core functions of their business such as IT, HR, Accounting, Marketing and Legal to avoid incurring high costs associated with employing full time individuals. The usage of contract staff is also a good way to cover peak periods of business activity, without incurring the high costs associated with permanent employment. For companies to be successful, they must budget for the true cost of their employees and make informed decisions when comparing the cost of retaining a non-core function inhouse or deciding to outsource it.

Rohan Nathan started Nathan & Nathan in 2012 at the age of 24. The company now employs over 120 staff generating revenues of over AED 40 million. Nathan & Nathan offers HR outsourcing services to small and midsize businesses in the UAE through a combination of cloud-based software and onsite HR expertise.

Human Resources

Intelligent SME

June 2017

From Sketches to Studio - Breaking into Dubaiâ&#x20AC;&#x2122;s Fashion Industry 48

Intelligent SME

June 2017

Lifestyle

KANCHAN KULKARNI shares her insight on going from stencil to shop in the UAE and writes about the importance of having a credible and thorough knowledge about the logistics, legalities and business profitability while making inroads into the region’s competitive fashion industry.

etting up shop in 2014, Kara had originally started as a figment of my passion for fashion, and with a concoction of hard work and perseverance, I have taken it from India, to Dubai, and beyond. And while there was a lot of literature on the basic requirements when creating a brand in the region, there were a lot of logistical and legal requirements that stayed well out of my general understanding until I went hands-on into the process of bringing Kara to life. The very first thing you need as a potential entrepreneur is a vision. Your brand, first and foremost, must represent who you are, and what kind of designs you are trying to create, and for what kind of customer. This vision is important to perfect, as once you have a clear insight into the core of your business, your business model will be more believable for future clients or investors.

Once you begin the heavy lifting of getting your vision noticed, the legalities come into play. To set up a studio in a non-freehold area of Dubai, you need a trade license from the Dubai Economic Department to design and produce garments in Dubai. This will also allow you to hire staff on your company visa. To avail a trade license, one needs to rent or own a retail space and have a UAE national as a Local Service Agent. The cost of setting up can be high depending upon the space you rent and the staff you hire. This is a significant capital cost that you need to include in your business plan before embarking on your journey as a fashion label. My first step after creating a brand framework was to begin work on the first collection. An idea is most believable, if you can see it, and so I advise designers to produce a well-shot lookbook of their work, and this first collection needs to be the

foundation, with the right material and style guidelines you plan to emulate throughout the existence of your brand. To ascertain these minutiae, one must delve deep into a pool of research material, and understand the market, the competition, and the audience needs. While you may have a great collection drafted that’s made entirely with angora and mink; with the mind-set shift towards cruelty-free and vegan, eco-friendly products, such a collection may not fare well early on with potential investors. A well-researched business plan, complete with feasibility studies and key performance indicators, is imperative to any business. While designing is all about creativity, business is a number game, and either harnessing one’s own know-how or getting a professional involved is the best way to go about this. Take your lookbook, your business plan, and create an online presence – Instagram is a designer’s best friend – and you’re all set to wow investors and boards

Kanchan Kulkarni is an international fashion designer and creator of the brand label, Kara that pays homage to the global spirit of fashion beyond boundaries. Founded in Dubai in July 2014, Kara has grown and recently featured on the runways of the Mercedes-Benz show in Doha, as well as in the prestigious Pune Fashion Week and India Beach Fashion Week, Goa. Kanchan is the recipient of Society Icons 2016 Award and Savvy Women’s Honor Award 2016 for her contribution to fashion.

Lifestyle

Intelligent SME

June 2017

at your targeted fashion shows. Choose your fashion launch platform with caution, check their credibility, and the shows that showcase your work as that would create your perception in the industry. But these steps are interlaced with the legal necessities in the region, and go hand-in-hand for your set up. Some key factors to keep in mind when you’re a budding fashionpreneur are to seek out guidance with your brand, and take market feedback into account when creating your collection. However, don’t let multiple opinions dilute the integrity of your design style. A brand requires its own signature style and quality that is consistently delivered to the customer and lives up to the standards set by the brand itself. Don’t ignore any warning signs when it comes to running your business profitably. Most creative people believe that because they are creative, they do not need to understand P&L statements, depreciation, balance sheets, product costing sheets or numbers in general. Business is about profitability and therefore saying you do not understand numbers is akin to a doctor being unable to diagnose symptoms and writing a blind prescription for them anyway. Once you get your online presence created and your collection in place, it’s ideal to research and choose the right stores that target your potential clientele within the range at which your brand plans to sell. Have a well thought out strategy as to why

Intelligent SME

June 2017

Dubai is a beautiful amalgamation of different cultures and that’s the reason why it has become the region’s fashion hub. Here, it’s not just the availability of various brands, but the different nationalities who wear the brands and make it their own that matters.

you have chosen the store and work hard to convince them to test your brand with a few pieces to begin with. The only way to have a long-term successful relationship with the stores where you stock is to understand the response to your collection and be flexible to rotate your stock and adjust your prices.

from sketches to production and go about putting together a professional lookbook with prices. You need to also know your production capacity before booking any orders with a store. Also research on shows where you’d want to present your collection.

At the nine-month mark

Your label in Year One At the three-month mark – Use the first few months post attaining your license to work with your staff and train them to create garments exactly as they exist in your creative mind. The look and feel is imperative to creating a signature style in a clogged industry.

At the six-month mark – At this time, having taken the legal requirements to the last mile, I advise to bring your collection

– This is the perfect time to bring your e-commerce website up, in order to be ready to market and sell your label online. This is a time, cost and effort consuming step to execute. I did it prior to launching the label as having an online presence greatly increases your visibility and credibility with your potential suppliers and financiers.

At the one-year mark – Your brand is ready for its debut at the fashion show platform of your choice.

Lifestyle

7 REMOTE WORK TRENDS

TO TAKE INTO CONSIDERATION IN 2017

1 2

MOST OF THE REMOTE WORKING ORGANISATIONS ARE ORIGINALLY FROM THE US & UK

72% 7% 7% 5% 2% USA

SPAIN

CANADA

GERMANY

THE HOTTEST INDUSTRIES

FOR REMOTE JOBS ARE TECHNOLOGY & MARKETING 29% INFORMATION TECHNOLOGY 25% MARKETING 5% BUSINESS MANAGEMENT & ADMINISTRATION

5% MOBILE APP DEVELOPMENT

PREFERED PLACES TO WORK FROM HOME CO-WORKINGS COFFEE SHOP HOTEL ROOM RENTED APARTMENT ANYWHERE

6 7 52

Intelligent SME

10% 10% 8%

27%

42% 38%

SKYPE & SLACK

ARE THE MOST POPULAR TOOLS FOR REMOTE COMMUNICATION 56%

46%

31%

21%

SKYPE

SLACK

TRELLO

HANGOUTS

FREEDOM AND FLEXIBILITY ADVANTAGE OF REMOTE WORK FREEDOM FLEXIBILITY PRODUCTIVITY FAMILY LIFE SAVING TIME OR MONEY

31% 27% 25% 8% 6%

LACK OF SOCIAL INTERACTION & LONELINESS ARE MENTIONED AS THE BIGGEST DISADVANTAGES

15%

29%

15%

LONELINESS

MISSING SOCIAL INTERACTION

NO DISADVANTAGES

SHOWING TRUST + CONFIDENCE TO THEIR TEAM & REDUCING COSTS ARE THE MAIN REASONS FOR COMPANIES TO GO REMOTE June 2017

Infographics

10 DIGITAL MARKETING TRENDS 1. ANALYSIS AND ROI From analyzing thousands of sites to manually fixing broken links, old school methods will be used pften in 2016. They work well because you have to earn them, and they're not easily manipulated.

2. FOCUSED PLANNING Marketers want to reign in the everything/ everywhere approach, and plan to be more connected to customers by focusing on one channel at a time. This means research, planning & competitive analysis

3. PPC IS CHANGING For 60% of marketers, PPC ads were more effective in 2015 than in 2014. Still, though, we found there's always room for optimization. In most case, 80% of the PPC budget gives a ROAS lower than 1. And with Google eliminating AdWords right rail real estate, PPC is about to become more difficult & more competitive.

4. SEO WILL BECOME HARDER Google is rewarding mobile friendly sites. Traditional SEO efforts are no longer enough. Having a responsive site and a blended PPC strategy is absolutely essential to earning a high ranking, especially with the expected increases in competition

5. MARKETING BUDGET WILL BESHIFTED TOWARDS CREATIVE APPROACHES The use of traditional advertising channels such as PPC & social media marketing will continue to rise. But companies will also start exploring new venues. It's all about testing, and you'll see companies doing more & more of this in 2016.

Infographics

6. SOCIAL MEDIA MARKETING WILL BECOME CRITICAL For every 100,000 followers on facebook, only 130 people will click on an organic post. What does that mean? Well for one thing, you need to start thinking about emerging opportunities in social media, with instagram & pinterest opening up their ad networks. It's all about being creative and staying relevent.

7. MORE CONTENT MARKETING We've seen a 10x lift overall organic traffic tp one of our client's sites as a results of increased content production(This client was'nt regularly producing content prior to working ith us). Content production will become even more critical in 2016.

8. INCREASED DEMAND FOR CONVERSION OPTIMIZATION We believe companies will be investing more and more in conversion optimization because of the need to combat increases in sdvertising costs.

9. MOBILE WILL TAKE CENTRE STAGE IN THE CUSTOMER JOURNEY We all know mobile is getting more and more important by the day, & research indicates that mobile ads perform about five times better than traditional web ads (based on most common mobile ads that are sold on cost per click, cost per acquisition, and cost per thousand bases.)

10. INCREASED PERSONALIZATION AND SEGMENTATION In 2016, marketers will need to focus more than every on personalization and segmentation. Email campaign need to be personalized and catered to actual individuals, content needs to target specific personas and sub-personas, and landing pages need to relate to people on an individual level.

Intelligent SME

June 2017

S U C C E S S I S A D E S T I N AT I O N

H AV E YO U A R R I V E D ?

WATCHES YACHTS DESIGNER JEWELLERY BOUTIQUE REAL ESTATE GADGETS EXOTIC DESTINATIONS FINE DINING

The Connoisseur’s Pen

ontegrappa has revived its limited ‘Cigar’ edition exactly after 20 years. Made in the special ‘Tobacco’ celluloid, one of the 24 hues Montegrappa boasts in its archives, the Cigar pen resembles the subject with uncanny realism. Deceptively simple, this writing instrument is a perfect replica of a real cigar with sizing of 153 mm in length and 15.08 mm in diameter and without a pocket clip. The Cigar Pen is offered with trim in Sterling Silver or 18k Gold and is available only as fountain pen or rollerball. The nib of the fountain pen is made of 18k gold, embellished with the Montegrappa filigree pattern. Production is limited to the traditional numbers of Montegrappa: 888 fountain and 888 rollerball pens in silver, and 88 of each in 18k gold. All Cigar pens are housed in special packaging in the shape of a tobacco leaf.

Rare & Fabulous

Intelligent SME

June 2017

Breaking Speed

he Lamborghini Aventador S replaces the original Aventador. With unprecedented updates and refinements, such as the new V12 engine with a whopping 740 HP, and the 4 Wheel Steering System for unprecedented driving dynamics, the Aventador S does not settle for less. In fact, the new design elements provide an increase of 130% in front downforce, while the new side air vents reduce turbulence, improving cooling and increasing efficiency. The elegant interior uses advanced technology, such as the instrument panel with interactive TFT LCD display with completely redesigned graphics, and the possibility to enhance the interiors with a LED lighting system created ad hoc. It is also endowed with the sophisticated Lamborghini Active Vehicle Dynamics (LDVA) control unit, a system of active technologies that can manage each of the dynamic axles of the vehicle. The result is an absolutely perfect, safe, and compelling performance.

Intelligent SME

June 2017

Rare & Fabulous

The Luxury of Leather

he new Classic Fusion Chronograph Berluti fuses Hublot's creative watchmaking genius with the innovative — and inimitable — patina of Berluti leathers. After the resounding success of their first collaboration, Hublot and Berluti has now joined hands to offer a self-winding chronograph where the legendary French shoemaker has added another layer of intricacy to the pieces by applying their trademark ‘Scritto’ design to the leather dials. Available in two finishes, Scritto King Gold and Scritto Black Ceramic, the process required handcrafting a watch dial out of leather – one that will not succumb to drying and cracking after years of remaining sealed in a box. Limited to 250 pieces each, both models come in an oversized Berluti bespoke box with a complete Berluti leather care set. Thanks to Hublot, the luxurious Berluti leather can now grace your wrist.

Rare & Fabulous

Intelligent SME

June 2017

Let the Music In

he BeoSound 2 from Bang & Olufsen is a powerful conical-shaped wireless speaker system with a sturdy yet unobtrusive aluminium design profile and a room-filling 360-degree sound performance worthy for any genre of music. It comes with integrated music services such as Spotify, Deezer, QPlay and TuneIn Internet radio, so that you can explore new music. You can also stream through Bluetooth, AirPlay, Google Cast, DLNA and more. Best of all, BeoSound 2 features the Multiroom technology that allows you to connect to all of your Bang & Olufsen products in one wireless system across your home. So, you can either play different music in different rooms or let the same sound flow throughout your home. The conical shape makes it extremely versatile and mobile, and minimises the actual footprint of BeoSound 2, thus allowing you to place it wherever you need your sound to be.

Intelligent SME

June 2017

Rare & Fabulous

Global Innovation Summit 2017

27th September 2017 Jumeirah Beach Hotel, Dubai

The Future is Now!

DON’T MISS THE BIGGEST INNOVATION CONFERENCE

Social Innovations

Smart Cities

To register, visit www.innovationsummit.ae

Internet of Things (IOT)

Digital Ecosystems

Disruptive Technologies

Why Attend? Global Innovation summit provides an unparalleled immersive experience and a knowledge sharing platform for networking, knowledge-sharing and discussion with senior decision makers. Bringing together key stakeholders integral to the business community, the summit provides you an opportunity to• Gain insight from industry experts as they deliver keynote addresses

• Exchange ideas, challenges and opportunities during panel discussions • Capitalize on the opportunity to make lasting connections, share best practices and network

with potential customers and suppliers during the breaks • Learn from industry stakeholders as they share their success stories through case study

presentations • Access to a host of solution providers at the expo

For sponsorship & expo enquiries call us on 0504278287 or email us at response@spiholding.net