The Intelligent SME Issue 20

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ISSUE: 20 | JUNE- JULY 2014

Enabling Global Ambitions

36 ‘Learn to deal with 206 nationalities, success shall follow’ Mohammed Khalaf Al Habtoor

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Contents June-July, 2014

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‘Learn to deal with 206 nationalities, success shall follow’ Among other things in this region, founders are posed with the challenge of familiarising themselves with the myriad nationalities in a growing expat-driven market. You can’t ignore the issue of ‘home-country-baggage’ loaded in a consumer’s mind, which compounds competition. One of the firms to successfully manage these concerns has been the Al Habtoor Group, with Mohammed Khalaf Al Habtoor (vice-chairman and CEO of the Group) leading the mantle.

28 Delivering safe and sound

DHL are well renowned for their speedy deliveries world-over. With an increased number of parcels and container deliveries alike, the onus on companies such as DHL has increased ten-fold. ISME caught up with Frank-Uwe Ungerer, country manager, DHL Express, UAE, to understand the company’s vision for the future, especially with the advent of preparations for the Expo 2020.

32 ‘It’s a myth that IT services are expensive’

13 Rare & Fabulous

High-end luxury products for CEOs and decision makers.

18 Business Announcements

What's happening in the business marketplace?

Here are some updates that you might have missed.

22 Cultivating an entrepreneurship mindset Dubai SME opens ‘Business Start-Up Centre’ to promote

entrepreneurship among children.

Each business has unique data management requirements, which can be determined based on a number of factors such as operational processes, human resources, scale of work, and especially financial capabilities, among others. If an SME wants to save on capital expenditure, then, Cloud is the way to go, says Yasser Zeineldin, chief executive officer, eHosting DataFort, in a chat with ISME.

42 Let’s change the communication strategy to sell better!

In a chat with ISME’s Amey Borkar, renowned motivation speaker and author of the two best-sellers (Maximum achievement and Eat the Frog), Brian Tracy, gave a run-down on the strategies SMEs need to adopt for selling their ideas better.

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44 No cash, no problem, trade without it!

Barter Services have been known to humankind for centuries, with successful implementation across several sectors of trade. Today, it has found a place in the modern economy too. One of the interesting ways of cashless exchange is the Bartercard, whose trade volume exceeds US $1.2 billion, with over 1000 corporate cardholders alone in the UAE.

With 140 new hotels due to come up in Dubai in the next two years alone, the hospitality industry is growing by leaps and bounds. Intelligent SME explores some interesting facets of the growth story and gets a glimpse into what the future holds for the industry‌

The UAE will shortly be implementing a new law intended to combat counterfeiting and other types of commercial fraud. The new legislation aims to enhance and strengthen the UAE's existing IP enforcement regime, and increase the maximum penalties that may be applied to offenders. However, the draft law only permits action to be taken in respect of counterfeits bearing "identical" trademarks.

58 Credit card holders, be wary of the freebies!

Although some premium cards such as platinum and gold cards offer reasonable cover, many of the standard cards have very restricted insurance and therefore should not be taken at face value nor should it be used as a substitute for standard insurance, says Sandi Saksena.

You have played the vital part in creating the success story that your business represents but is your way of working stagnating your company?

Well, maybe it's time to consider appointing a mentor. Simon Hodges explains the idea.

66 Act like a listed company to take your business up a gear

56 Protecting your business name, legally

Are you planning to establish your business in the UAE or the GCC region? Here are the minimum insurance requirements needed to run your business smoothly.

62 A friend in need is a mentor indeed

47-55 Special Coverage

A focus on Dubai’s

hospitality industry

Understanding your insurance package

UAE has 130 companies that are listed on the three stock exchanges and they follow a set of stringent rules which make them more efficient and competent to take better decisions. If SMEs in the UAE imbibe habits of the listed companies, they can well take their businesses to the next level, says Mark Fisher.

70 Innovation is the lifeblood of SMEs

SMEs today want more than just value for money.

They want to offer bespoke experiences to their customers and make a valuable contribution in their lives. This trend is a harbinger of the large growth the SMEs are poised for in the coming years, says Vikram Chadha, vice president of SME Marketing, du.

74 What is your net worth in leadership credits?

Michael Tolan gives away a few tips to leaders on

how to build trust and respect among employees so that it encourages them to stay with the organisation, no matter what.

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Editor’s Note

www.spigroup.ae www.robustrak.com www.theintelligentsme.com www.appsmena.com www.appsglobal.ae www.dubai-gbs.com www.smeworld.ae Follow us on twitter: @intelligentsme Facebook: facebook.com/theintelligentsme

In the past, I have interviewed and engaged extensively with successful businesses of various hues and contours in this region to provide the SME community an up-close and personal account of strong business models, tricks of the trade, and, in-short, what keeps them going.

But, wouldn’t it be an interesting feature to list out the reasons why companies fail to reach their potential, or fail to grow beyond mediocrity, or just fail to grow?

Publisher & CEO Shantanu A.P. Account Director Vijay G. Editor Samar Manzar Asst. Editors Nikhil Pereira, Amey Borkar Consulting Editor Utpal Bhattacharya

Expert Contributors Amal Loring Mark Fisher James Reynolds Johan Engelbrecht John Merrigan Michael J. Tolan Neil Petch Phil Bedford Sandi Saksena Simon Hodges TishTash Zed Ayesh

Art Director Aneesh Varghese Designer Retheesh Viswanath Web Developer Raj Shekar Reddy Photographer Arzai Zafar Response and communications

Response Executive Evelyn V.B. MIS Executive Yolanda Pedemonte Distribution Department

Jerry P. Sam Editorial Enquiries & Contributions

% 04-2659704, 04-2650312 Fax: 04-2690566 editor@theintelligentsme.com

A host of aspects when left unattended push companies to hit a wall. These include external factors like market size, competition and demand. But, a certain amount of internal factorsoperations, technology adoption and marketing-also contribute in deciding whether the company would dominate or shrink, ultimately. Among others, one of the key drawbacks is their unwillingness to adopt emerging technologies, fearing the impact it would have on their balance sheets. Thus, the ISME team spoke to Yasser Zeineldin, CEO, eHosting DataFort, to dig into the business of cloud computing and explore the opportunities it offers in streamlining processes, without burning a hole in the pocket.

In addition, the magazine has been given a face-lift in terms of content. We will now have themed editions to focus on different industry verticals. To begin with, of-course, it is hospitality, as tourism sector is one of the biggest drivers of the Dubai economy. And one of the specific categories popping its neck out, attracting a lot of attention is the budget hotels industry. The ISME team brings a detailed report on several facets of growth in the hotel industry-contribution to the country’s economy, competition with big brands, the run-up to Expo 2020- et al.

Lastly, the second edition of the Emirates NBD Global Business Series started on a strong note, with Mohammed Khalaf Al Habtoor, vice-chairman and CEO of the Al Habtoor Group, as the guest of honour. A visionary, who has consolidated the Group with courage, fortitude and the ever-important corporate culture, after taking over the mantle from his father. He has also further strengthened the family foundation. It’s an inspiring tale of a passionate leader. Hope it makes for an interesting read!

Your feedback is extremely valuable to us. Do write to us with suggestions at editor@theintelligentsme.com.

Samar Manzar

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Disclaimer

SPI Publishing has endeavoured to bring out a publication that is reliable and informative. This is true to the best of our knowledge. The opinions presented are those of individual writers and not necessarily endorsed by SPI Publishing. The content in this magazine is protected by copyright law and is copyright to SPI Publishing unless credited otherwise, and may not be copied, reproduced or republished for any commercial purpose or financial gain.

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

June-July 2014

Intelligent SME

Rare & Fabulous

Strong and sublime, Evora S packs a punch T

he iconic British automotive manufacturer – Lotus Cars’ blends the sublime handling attributes of the Lotus Evora S with the surging linear power of a supercharged V6 engine.

The Evora S has the ability to set itself apart from the competition providing a hand built quality fit, feel and finish in an everyday sports car. Its design and engineering technology ensure that the driver is fully immersed in a sensory experience, where exactly the right feedback is transmitted from the road to make even the most ordinary drive feel special.

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Lotus’ engineering and racing expertise has ensured the development of a car that lends itself to excellence on both road and track, as witnessed through its evolution.

For exceptional handling, performance, exquisite poise and usability, the Lotus Evora S delivers in every aspect.

Delivering even more attitude, the forced induction power plant delivers 345 hp and 295 lbft of torque. There’s no appreciable weight gain: at 1,437 kg the Evora S is still lightweight, muscling from 0 to 60 mph in 4.4 seconds, powering to its 178 mph maximum.

It’s a logical progression. Forced induction brings instantaneous

power delivery. It drives with an awe-inspiring urgency and vigour yet the remarkable Lotus chassis takes power and control in its stride.

Visual differences include an aggressive rear diffuser, black wing mirror caps and rear light surrounds, with a new active exhaust system providing a dramatic aural soundtrack.

With the Sport Pack as standard, the Evora S increases the throttle response, raises the rev limit and alters the Lotus DPM settings at the touch of a button for a heightened dynamic experience.

In the UAE, Trading Enterprises, part of Al-Futtaim Automotive Group, are exclusive retailers for Lotus cars and operate from their showroom at Dubai Festival City. For more information, customers can call 800 5823, visit www.lotuscars.ae.

June-July 2014

Intelligent SME

Rare & Fabulous

Professional quality now in your pocket with Cyber-shot RX100 III S

ony Middle East and Africa FZE recently announced the launch of the RX100 III, the latest addition to the popular Cyber Shot RX100 series.

Offering fine image quality and incredible portability, the RX100 III is targeted at professionals and photography enthusiasts, as well as current RX100 or premium compact camera users looking to upgrade.The Cyber-shot RX100 Mk III compact digital camera from Sony will be available across all Jumbo Electronics showrooms and select electronics retailers from June 2014. It has been priced at AED 3299 and comes with an 8GB memory card and a carry case.

Crafted in tough, travelfriendly aluminium for lightness and looks, the uprated lens and speedy image processor in the Cybershot are complemented by a retractable OLED Tru-Finder with ZEISS T* coating, enhanced movie features and a 180-degree tilting LCD – all in a stylish fixed-lens camera that’s truly pocket-sized.

Brighter and wider than before, the ZEISS Vario-Sonnar T* 24-70mm F1.8-2.8 lens captures everything from expansive landscapes to soulful portraits.

Thanks to a large F2.8 maximum aperture at its telephoto end, subjects stand out crisply against smooth background. The impressive light-gathering power

of the lens also allows faster shutter speeds to freeze fast-moving subjects. A built-in three-stop (1/8) Neutral Density filter gives added creative flexibility with sundrenched exteriors or intentionallyblurred shots of moving water.

The high-contrast retractable OLED Tru-Finder offers bright, detailed viewing with the camera held to your eye. The viewfinder’s optical surfaces include a ZEISS T* coating that dramatically reduces reflections and delivers exceptional corner to corner clarity. There’s also a handy eye sensor that automatically switches between viewfinder and monitor display.

From detail-packed stills to vibrant Full HD movies – everything’s beautifully clear thanks to the new camera’s 20.1 effective megapixel 1.0-type backilluminated Exmor R CMOS image sensor. Offering excellent low-light sensitivity and low noise, the sensor is complemented by Sony’s latestgeneration BIONZ X processing engine. Three times faster than its earlier version, the camera powers detail reproduction technology for natural representation of fine textures, diffraction reducing technology for enhanced quality at small apertures, and area-specific noise reduction to maintains clarity in dimly-lit regions of indoor and night-time shots.

The speedy BIONZ X processor also powers exciting new video features. In a Cyber-shot first, the RX100 III now supports the efficient XAVC S format. Based on the professional XAVC standard, the camera records stunning Full HD video footage at up to 50 Mbps with minimal distortion and noise - even in busy, movementpacked settings. HD footage can be recorded at 100 fps in XAVC S mode for silky smooth slow motion replays via an application like Sony’s PlayMemories Home application.

Making its debut in the RX100 family, PlayMemories Camera App boosts your photo experience with a growing range of free and paid-for apps. It’s easy to enhance your photography with a choice of creative effects and filters, utilities and more. The integrated NFC/ Wi-Fi connectivity ensures an easy customer experience.

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Rare & Fabulous

Time for exquisite refinement P

reserving traditions while remaining resolutely contemporary is an art that is perfectly illustrated in the pair of Feather Watch models by Corum. The design is a tribute to a 1970s timepieces and the 5N 18K red gold case comes in a finely wrought 39 mm diameter.

The dials are preciously set with peacock feathers and on one model the feathers are framed by 120 round-cut diamonds (approx. 0.71 cts).

The brand has drawn on its history in conceiving a unique line that pursues watchmaking’s perpetual quest to explore the ties between classicism and modernity, between fine mechanics and age-old arts. The two Feather Watch models reveal an exquisitely graceful dimension with two dials made from peacock feathers.

Much in vogue during the 19th century, plumasserie, or feather art, remains an enduring symbol of elegance.

Displaying infinite patience, meticulous care and dexterity, the feathers are rigorously sorted and chosen for their stability, their density and their finesse, before being cleaned, steam-stabilized and re-cut by hand.

The magnificent and original result beautifully enhances the dials of these Feather Watch models.

The first stems from an artistic union brimming with vibrant colors; while the second is an encounter between watchmaking, feather art and jewelry with its 120 diamonds totaling 0.71 carats framing the feathers on the dial. Adding the final touch of refinement, these models are secured to the wrist with an integrated black crocodile strap featuring a curved spring-bar.

The automatic CO 082 movement oscillates at the frequency of 28,800 vibrations per hour, drives the hour and minute hands and has a 42-hour power reserve. The gilded oscillating weight engraved with the Corum coat-ofarms is visible through the transparent case-back of this model water-resistant to 50 meters. The 39 mm case in 18K red gold features a fluted bezel engraved with the key symbol, discreetly echoing the Corum universe.

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Rare & Fabulous

Luxury Italian office furniture manufacturer enters UAE market B

abini Spa launched its latest office furniture collection in Dubai this month, as the company rolls out expansion into UAE as part of its global growth strategy.

Founded in 1963 in Italy, Babini Spa designs and produces functional, high quality office furniture made exclusively in Italy.

Having achieved double-digit growth in Europe over the previous two years, Babini completely revamped its internal structure to better concentrate on opening new markets and with this month’s launch, the UAE is set to become a key growth market through an exclusive multi-year agreement with local distributors Office Inspirations.

“We believe there is a

significant opportunity to extend the reach of our brands globally,” said Babini Office COO Michele Falcone. “The UAE is a natural market for us, with a strong, growing economy and a lot of interest in high-quality, stylish products. We are pleased to partner with Office Inspirations, a company with demonstrated success developing well-known brands in the UAE and a deep understanding of the local customer base. We are confident they are the right partner to introduce our brands to the UAE market.”

Office Inspirations Marketing Manager Liam Flynn added that both Office Inspirations and Babini share a common desire to create inspiring environments.

“We are delighted to have the opportunity to introduce the Babini portfolio of products to the UAE. We have vast experience working with global and local companies, with internationally trained staff and flexible processes which we can adapt for each project – making both companies ‘Easy to Work With’. More than ever, our customers are looking for unique, high-quality products, and Babini exemplifies the innovative style, quality, and service they expect.”

Headquartered in Ancona, Italy, Babini is a family run business with a design philosophy built on its Italian heritage. All its products are designed and manufactured in Italy at the company’s purpose built factory.

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June-July 2014

Intelligent SME

Business Announcements

DC delegation calls upon Azeri businesses to benefit from Dubai retailers’ experiences

A

Dubai Chamber of Commerce and Industry led senior Dubai business leaders’ delegation from the retail and franchising sectors recently concluded their trade mission to Baku in Azerbaijan. Besides meeting the country’s Minister of Economy and Industry, the delegation also visited Baku’s iconic real estate development of residential and commercial complexes.

The delegation, which was headed by H.E. Hisham Al Shirawi, 2nd vice-chairman, Dubai Chamber, included H.E. Abdul Hamied Ahmed Seddiqi, board member, Ahmed Seddiqi & Sons, Adel Zarouni, managing director, Rivoli Group LLC, Nilesh Ved, chairman, Apparel Group, and Ishwar Chugani, executive director, Giordano.

The objective behind Dubai Chamber trade mission was to promote experience and knowhow of modern Dubai retailers and developers in planning, building, and running modern shopping centres. Another aim

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of the mission was to create an opportunity for leading Dubai and Azerbaijani retailers to discuss business opportunities as well as to strengthen the status of the emirate as an international retail and franchising hub.

Meeting with Azerbaijan Minister of Economy and Industry

A high level meeting between H.E. Shahin Mustafayev, Azerbaijan Minister of Economy and Industry, and H.E. Hisham Al Shirawi focused on bilateral relations and two-way flow of investments.

"The opening of Dubai Chamber representative office in Baku is a strong signal of cooperation between the two countries," said H.E. Mustafayev, adding that there were ample cooperation opportunities for developing infrastructure, trade, agriculture and investment between the two countries.

CEO Roundtable on retail and franchising opportunities

A CEO roundtable on retail and franchising opportunities in Azerbaijan held at the Four Seasons Hotel was attended by H.E.

Sahil Babayev, deputy minister, Ministry of Economic Development of Azerbaijan, H.E. Hisham Al Shirawi, Rufat Mammadov, president, Azerbaijan Export and Investment Promotion Foundation (AZPROMO) and Rasul Mammadov, partner, Azerbaijan Property Solutions.

The roundtable, which was attended by 30 Dubai and Azeri business leaders, discussed Dubai’s experience in commercial real estate and retail management, franchising needs of the growing consumer market in Azerbaijan, bringing Dubai-grown brands and franchises to Azerbaijan and helping Azerbaijani brands and franchises to do business in Dubai.

He further stressed that Dubai’s hosting of Expo 2020 will see a considerable rise in retail sales and will offer many new investment opportunities for companies operating in the emirate as he called upon Azerbaijani companies to set up base in Dubai and benefit from the opportunities arising from its various economic sectors.

June-July 2014

Intelligent SME

Business Announcements

Just Falafel to open 57 outlets in Benelux region

J

ust Falafel, a rapidly expanding UAE-based healthy fast food operator continues its global expansion with the signing of 57 stores in the Benelux region.

The new outlets will be opening in The Netherlands, Belgium and Luxembourg.

Wadi Degla Holding will be

operating the stores. They are an Egyptian based conglomerate with global interests in sports facilities, two football teams, telecommunications, real estate developments and industrial projects. The group is well known for their operational excellence in the food and beverage arena, which will ensure an efficient roll out of the stores.

“Europe is an important region for Just Falafel, as it represents an area of significant demand for Middle Eastern food, “ said Just Falafel’s CEO, Fadi Malas. “The interest in our franchise offering has been overwhelming as we have a unique concept that is

very compelling to prospective franchisees.”

The exclusive area development deal builds on an already strong relationship between Just Falafel and the Wadi Degla Holding, which already have 27 franchises in Egypt, and are located both within their own Wadi Degla clubs and in prime locations in Cairo.

Wadi Delga already has a presence in the Benelux region, being an owner of the Belgium football team Lierse SK and will start opening restaurants, a few of which will be operational this year.

Established in 2007, Just Falafel's vision is to create specialised centres of excellence in fast food, elevating the status of the falafel from the Middle East to a global phenomenon, while keeping in mind superior quality, taste, and value.

Al Basel Consultancy to promote Montage Beverly Hills Hotel in GCC

A

l Basel Consultancy, a leading real estate consultancy firm and a member of the Al Basel Group of Companies, revealed its new strategic partnership with Montage Beverly Hills Hotel, a leading luxury hotel in Los Angeles, California.

The agreement signing was done during a special media briefing held at the Burj Al Arab recently.

Under the terms of the agreement, Al Basel Consultancy will promote the Montage Beverly Hills Hotel, which is part of the Montage Hotels and Resorts Group and is widely known for being the first hotel and residence to receive a Gold level certification in Southern California under the U.S. Green Building Council’s Leadership Energy and Environmental Design (LEED).

According to Al Basel senior executives, the new partnership agreement will give them the opportunity to promote Montage Beverly Hills Hotel across potential high-profile clients in the GCC— leveraging the hotel’s 201 wellappointed guestrooms, including 55 suites that have all been

designed to pay tribute to both old Hollywood glamour and modern day luxury.

Located in Southern California’s most celebrated neighborhood, Montage Beverly Hills Hotel features architecture inspired by the Spanish Colonial Revival times and Mediterranean styling prevalent in Beverly Hills.

“This new partnership will prove to be highly beneficial to Montage Beverly Hills Hotel, as it will allow us extended reach into potential clients from the Middle East and GCC region. The new alliance also represents perfect timing as recent reports show a large demand for high-end luxury accommodations for affluent tourists from the GCC. We are highly optimistic that Al Basel Consultancy will play a significant role in attracting more customers from this area,” said Charles Black, Director for Sales, Montage Beverly Hills Hotel.

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June-July 2014

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Get Informed

Dubai FDI sets stage for Isle of Man to set up local office The British financial firm, SMP Trustees Partners Group, has set up its regional headquarters in Dubai. It is one of the largest Trust and Corporate Service providers in the Isle of Man, with regulated trust companies in Switzerland and Hong Kong.

I

nvestment Development Agency (Dubai FDI), an agency of the Department of Economic Development (DED), has successfully collaborated with SMP Trustees Limited, part of the SMP Partners Group based in Isle of Man, to open a Representative Office of the Trust company in Dubai.

The opening of the new office follows a partnership agreement signed between DED and the Isle of Man government in 2012 and a recent visit by a Dubai FDI delegation to the British Crown Dependency, known for its low-tax economy and offshore banking and financial services.

SMP Partners Group is one of the largest Trust and Corporate Service Providers in the Isle of Man, with regulated trust companies in Switzerland and Hong Kong. The Dubai office will enable SMP Trustees to build on its existing relations with Dubai-based financial and professional firms and evaluate potential for a formal presence in future region-wide expansion.

“Services have emerged into a strong component of Dubai economy and the trend is here to stay with the emirate’s diversification strategy. The key sectors promoted by Dubai as

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drivers of sustainable economic development and the arrival of Expo 2020 will create stronger demand for globally trusted financial services,” commented Fahad Al Gergawi, chief executive officer of Dubai FDI.

“We consider it a major milestone that SMP Partners Group chose Dubai to grow further. It goes a long way in bringing worldclass resources to Dubai and offers SMP Partners with the best links to a consumer market of over 2.2 billion spread across the Middle East, North and East Africa and South Asia,” added Al Gergawi.

SMP Trustees, which has now opened its Representative Office in Dubai, provides Trustee and

related administration services to private and corporate clients worldwide as part of the SMP Group. The Dubai office is for relationship purposes only and will not undertake any financial services or regulated activity onshore in the UAE or the Dubai International Financial Centre.

The Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economic Development (DED), works to promote investment opportunities in Dubai and support international investors to establish a presence here whilst taking advantage of Dubai’s strategic location to access the MENASA region. Dubai FDI assists in the identification of sector specific opportunities, provide connections to a network of both government and nongovernment partners, and provide support throughout the investment lifecycle from setup to growth.

June-July 2014

Intelligent SME

Get Informed

Preparing your business to face a disaster A recent report suggests that 82 per cent of region's businesses doubt that they can recover from natural disasters.

O

nline shopping databases, healthcare records, and police surveillance videos are among the different types of data that are increasingly collected by companies and government agencies through websites and mobile apps, transforming businesses and enhancing daily lives across the region.

This data deluge is backed by cloud computing growth, whose spend is slated to reach USD 3.8 billion in the Middle East and Africa through 2017, according to a recent Gartner Inc. report.

But businesses and government agencies must now ensure constant and secure access to data, especially in the event of natural disasters, like fires or earthquakes; or human disasters, like hardware failures, power cuts, or security breaches, causing data centers to go down.

In a survey of IT decision makers from across the Middle East, Turkey, and Morocco, nearly all of them (82 per cent) said they are “not very confident” that they can fully recovered from a disaster, while nearly two-thirds (64 per cent) said they have lost data or had systems go down in the last year.

“Backup sites and disaster recovery sites (DSR) are at heart of protecting data in worse-case scenarios. Backup Sites copy files to another disk, through tape or increasingly through the cloud, to access and eventually restore data.

But Backup Sites or their recovery processes can potentially fail.

Disaster recovery sites are more powerful and secure, as they create a mirror of disk drives and servers, enabling immediate business

continuity,” says Mohammed B Manna, Area Sales Manager at Omnix International. Omnix International provides Disaster Recovery Solutions in the UAE, Kingdom of Saudi Arabia, Qatar, Kuwait, and Jordan. Mohammed adds that nearly three quarters (73 per cent) of organisations want faster and more secure digital backup sites and disaster recovery sites, per the survey.

But how can businesses and government agencies decide which disaster recovery site is best?

Business continuity plans guide the decision, driven by business needs and not IT needs.

“At the heart of business continuity plans are two key business factors: Recovery Point Objective (RPO), the amount of data that an organisation can afford to lose, and Recovery Time Objective (RTO), the amount of time that an organization can afford to stop their services.

Larger organisations, like online shopping websites or airlines, both have RPO and RTO approaching zero, leading to high-cost Disaster Recovery Sites.

If their website is down for one hour, they could lose potentially hundreds of thousands of customers,” says Mohammed.

As government and public sectors across the Middle East and Africa rollout e-government services, disaster recovery sites are witnessing strong growth. The UAE leads the region, with Dubai Smart Government studying a disaster recovery site shared by 31 government entities, while Abu Dhabi’s Executive Council has approved establishing a Disaster Recovery Center.

Omnix International has identified government, public sector, defense, banking, and healthcare as the five key verticals that will drive disaster recovery sites across the Middle East and Africa in the coming years.

Mega-events in the region, including World Expo 2020 and Qatar 2022 FIFA World Cup, are driving expanded IT infrastructure, leading to a pressing need for disaster recovery sites.

“When potentially thousands of employees and customers rely on the company or government agency’s network and website, disaster recovery sites are no longer optional, they are mandatory,” says Mohammed.

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Cultivating an entrepreneurship mindset

D

ubai SME, the agency of the Department of Economic Development mandated to develop the small and medium enterprise (SME) sector, has opened a ‘Business Start-Up Centre’ at KidZania, the award-winning interactive edutainment centre managed by Emaar Retail at The Dubai Mall, to familiarise children with the concept of business and entrepreneurship.

The new facility will allow children between the ages of four to 16 learn the basic principles of starting and growing a business and set up their own ‘businesses’ in the safe and unique educational environment. Children can work on their business plans and issue their own trade licenses at the Business Start-Up Centre.

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Dubai SME is extending the facility as part of promoting entrepreneurship among children of all age groups. The venture will also enable the children to participate in the Young Entrepreneur Competition organised by Dubai SME to inculcate entrepreneurial spirit among school and university students across the UAE.

Abdul Baset Al Janahi, chief executive officer of Dubai SME, commented: “We are happy to partner with a leading edutainment centre as part of our efforts to spread awareness on what it takes to be an entrepreneur.

The partnership provides us an additional channel to connect with the entrepreneurial talent in the country.”

Al Janahi added: “Dubai SME has various innovative programmes aimed to identify entrepreneurial talent and support existing and future entrepreneurs achieve their goals. For example, out Intelaaq programme for home-based businesses is a convenient option for people to be entrepreneurs.

We will continue to work with KidZania® to help children understand about Dubai SME and entrepreneurship.”

Maitha Al Dossari, chief executive officer of Emaar Retail, said: “It is our honour to welcome Dubai SME’s Business Start-up Centre at KidZania®, which will enable our young visitors to gain strong insights on Dubai’s entrepreneurial culture. The Centre will inspire them to pursue their

June-July 2014

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dreams with the confidence that our leadership has set the strong platform for them to achieve their fullest potential.

“One of the key contributors to Dubai’s economy, SMEs are also significant for their job creation potential and their ability to promote innovation. The new Centre further highlights the strong public and private partnerships that KidZania® promotes to ensure that our visitors have a thorough understanding and hands-on knowledge about all aspects of a fully functioning economy,” she added.

Welcoming the new initiative, Mohammed Shael Al Saadi, chief executive officer of the Business Registration & Licensing (BRL) sector in DED pledged all support for educating children on licensing procedures and the legal steps involved. “We will help children to advance through the different stages in business registration and get their licenses issued.”

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June-July 2014

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The winner’s edge lies in his talent base, not IQ SP Jain School of Global Management hosted an HR conclave to highlight innovative trends in attracting the best knowledge pool, facilitating strategic partnerships and building a work culture.

I

ncreasing globalisation, rapid technological changes, tough competition and several other organisational changes in the business environment in the region have made the Human Resource (HR) professionals across various industries realize the importance of implementing innovative strategies for motivating and retaining people and navigate companies through the several transitions.

With an aim to highlight these innovative trends in the industry and to facilitate partnership

between academia and industry experts, SP Jain School of Global Management organized a HR Conclave which focused on how companies can succeed in the talent economy of the 21st century.

Setting the ball rolling, Dr Abdulla Al Karam, chairman of Board Directors and director general, Knowledge and Human Development Authority, KHDA, Government of Dubai and the keynote speaker for the event highlighted one such recent trend where he said companies are doing much more than just engaging with

employees. “Today, companies are more focused on the wellbeing and happiness of their employees.

It can be very rewarding for companies as such acts makes employees more loyal to their companies,� he said. He urged HR personnel to stop evaluating CVs and start scouting for talent and skills.

While discussing the most appropriate time for HR departments to innovate in their companies, Suha Mardelli Haroun, regional sales and HR director, Bayt.com, maintained that a

(From L to R,) Prof Arindam Banerjee, Rajesh GK, Abdulla Al Banna and Suha Mardell Haroun, at the SP Jain School of Global Management HR Conclave.

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June-July 2014

Intelligent SME

Get Informed

structured method for innovation is important. “Companies have seasons for innovation. For instance, we, at Bayt.com, do it 5 times a year. We have an elaborate two-way process where we receive feedback on the innovation from our employees which is then evaluated,” she informed. Adding to the point, Rajesh GK, vicepresident-Corporate Strategy and Business Excellence, UAE Exchange opined that, ideally, the sooner a start-up SME adopts innovative practices, the better it is for that company.

The speakers also felt the need that the current generation need to be engaged by means of innovation and unanimously supported the idea of using smart technology to serve the cause. “At my company we realized that employees wanted access to Facebook. So, we gave them access but also made sure we engage with them. We use Facebook now but to share ideas and get their feedback on various issues,” informed Abdulla Al Banna, head of compliance and HR, Al Futtaim Automotive Division, Al Futtaim Group. Suha also gave another example of how NASA

hired a scientist based on his talent and skills despite he flaunting a ‘mohawk’ hairstyle. “People today want to do something they are proud of and it is time HR managers understand this need,” added Suha.

Asking HR managers not to fear innovation, Rajesh GK said “Innovation need not be always new. Innovation should be deployed in a newer context and as long as that is done, the purpose is served,” he added.

Another important aspect of HR which involves motivating and retaining talent was also discussed at the conclave where David Van Lochem, HR leader, STG Middle East and Africa, Dubai; Seema Hallon, associate vice-president-Human Resources and Administration, Eros Group, Dubai and John Rohan De Silva, Human Resources Manager, Danzas DHL AE, Dubai opined that a clear and precise job content is the most important thing an HR manager can do for an employee.

“HR managers can devise a clear, meaningful career path for its employees, always guiding them if they are going astray. Introducing

the feeling of dignity of work by having training and appraisal programs, awarding, rewarding and counseling employees can go a long way in retaining talent,” said the three speakers on an unanimous note.

After the vigorous discussion on talent management Professor Christopher Abraham, started his session to give some insights on neuro-science to the audience.

In his signature style of engaging the audience through puzzles and asking frequent questions he shared the latest research conducted by neuroscientist across the world which has proved beyond a doubt that the human mind is able to achieve unexpected feats when properly trained.

The conclave concluded with a thank you note by Director of Industry Interface Program, Dr Dhrupad Mathur, who wholeheartedly expressed gratitude and congratulated the industry professionals, academicians, staff members and the student volunteers of S P Jain, who collectively planned and executed a memorable event.

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June-July 2014

Intelligent SME

Get Informed

Dubai Chamber hosts success story workshop for local entrepreneurs Offering young entrepreneurs a chance to enhance their businesses with the help of training, knowledge and insights, the Tejari Dubai Majlis presented several successful case studies.

Mr. Essa Al Zaabi, senior vice-president, Institutional Support Sector, Dubai Chamber and general coordinator of Tejar Dubai and Mr. Nilesh Ved, chairman of Apparel Group.

A

s part of its efforts to inspire nascent UAE talent to take up business activities, the Dubai Chamber of Commerce and Industry’s initiative, Tejar Dubai, hosted a workshop providing success story from an established businessman at the Chamber premises on Sunday.

The workshop with its focus

26

on the Food and Beverage sector had Nilesh Ved, chairman of Apparel Group, giving out firsthand account of his experience in setting up business, especially as a franchisee of Tim Hortons, to a large number of Emirati businessmen and women who participated in the Taste of Wafi food event at Wafi Mall for SMEs

where Tejar Dubai has put up a stand to inspire budding UAE entrepreneurial talent.

In his welcome speech, Essa Ali Al Zaabi, senior vice-president, Institutional Support Sector, Dubai Chamber and General Coordinator of Tejar Dubai, stated that the entrepreneurship development programme continues to inspire

June-July 2014

Intelligent SME

Get Informed

young Emiratis to enter the world of business. It is also committed to encourage the youngsters to seek their rightful place in the business world as well as to support SMEs or small and medium enterprises which constitute more than 90% of the companies operating in Dubai.

Al Zaabi further stressed that as part of its entrepreneurship development programme, Tejar Dubai invites established businessmen to share their experiences and success stories while also giving out the strategies that they adopted in facing the obstacles and challenges which will ultimately help the aspiring businessmen to write their own success stories.

Thanking Nilesh Ved for his participation in the workshop, the General Coordinator of Tejar Dubai informed that a number of participants of the programme were busy giving finishing touches to their projects which he said can be accredited to the extensive training, knowledge and experience they received during the course of the programme.

He also thanked the

management of Wafi Mall for supporting Dubai Chamber’s participation through its stand in the Taste of Wafi food event while lauding their role in furthering the growth of SMEs in the emirate.

On his part, Nilesh Ved, Chairman of Apparel Group, said: “In my journey of retail of branded business, I have learnt that it requires lot of passion and commitment for creating and building the brands. These brands may be big giants in their home markets but to create the same proposition in the local markets you really need to market them in a big way. Retail is a long term investment and a business which requires lot of hard work. I believe we are shopkeepers and we need to be on the shop floor to understand what our customer wants and how can we delight every customer that walks in our store.’’

The workshop was the second in a series of Majlis’ organised by Tejar Dubai. The first such meeting, held last month, was attended by H.E. Hisham Al Shirawi, 2nd ViceChairman of Dubai Chamber and Chairman of the Panel of Experts

Committee of Tejar Dubai.

The Tejar Dubai initiative which was launched by Dubai Chamber last year is the first in the UAE to offer a specialised programme and platform for youth to help them establish their own small-to-medium-sized businesses.

With its commitment to the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai, which emphasises that entrepreneurship is the shortest route to a bright future, the training programme aims to find and train creative and commercially-minded youth to help them turn their business ideas into a reality.

Not only does the initiative provide youth with access to an extensive development programme, including classroom learning, on-site training, mentoring and business advice, but candidates also get networking opportunities with local and international business leaders and access to investment capital.

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June-July 2014

Intelligent SME

Success Story

Delivering safe and sound DHL are well renowned for their speedy deliveries world-over. With an increased number of parcels and container deliveries alike, the onus on companies such as DHL has increased ten-fold. ISME caught up with Frank-Uwe Ungerer, country manager, DHL Express, UAE, to understand the company’s vision for the future, especially with the advent of preparations for the Expo 2020.

Following is the edited transcript of the interview: Q: How has DHL progressed in the UAE?

A: DHL’s relationship with the

MENA region dates back more than 30 years when DHL was able to identify the prosperous potential for the region. In the early 70’s we became the first express logistics company to operate and have a physical presence here. Since then, the region has experienced vigorous and continuous business growth whereby exports have increased considerably over the past two decades, partly as a result of growing economic openness and because of higher oil production and exports. As the leading logistics provider in the UAE and double digit growth last year, DHL is one of the most established logistics companies in the Middle East.

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Success Story

Q: How do you differentiate from your competitors?

A: At DHL we strive to offer our

customers the best service possible and be insanely customer centric in everything that we do, one way to differentiate ourselves is through service leadership to achieve customer loyalty. This is measured daily through a sophisticated matrix system called Net Promoter Approach (NPA).

The system is globally recognized as both a loyalty metric and a discipline for using customer feedback to fuel profitable growth in the business.

DHL first introduced NPA two years ago, with the objective to maximize customer loyalty and, ultimately, increase market share.

This is driven by empowering every employee with ownership of their NPA score, resulting in a personal commitment to improve customer satisfaction and implement improvement processes for failures or dissatisfaction.

Consequently, NPA has changed the way DHL does business, for example, as a result of customer feedback, we have made it easier for customers to pay by introducing an e-billing payment process, which has achievement more than 80% take up rate.

Q: What would you characterise as

significant milestones in the last few years?

A: We recently partnered with

Etihad Cargo by providing cargo capacity on DHL’s new five times a week service to and from Abu Dhabi, which will result in enhanced transit times, including earlier deliveries from the United States (US) to customers in Abu Dhabi and later pickups for shipments across the Globe.

In addition, the significant expansions and investments being made across the region such as DWC-Al Maktoum International Airport project will in turn lead to more facilities, improved technology, increased flights and clearance capabilities.

We have also won numerous

As the leading logistics provider in the UAE and double digit growth last year, DHL is one of the most established logistics companies in the Middle East.

awards across the region in the last year and across different functions; HR, CS and operations.

This includes securing three of the top five spots in AON Hewitt’s Employer of the Year award; with our office in UAE named as the Best Employer in the Middle East as well as being named the number one best place to work by Great Places to Work earlier this year. This shows that we are treating our men and women with the respect they deserve. They are our most important asset and you need to always be sure that your most important asset is well taken care of.

Q: What role is DHL likely to play in the build-up to Expo 2020?

A: The exciting World Expo 2020

win will further boost Dubai’s strong economic recovery and help reaffirm the country as a leading logistics hub between the East and West. Alongside the economic benefits, an increase in global and regional trade will additionally fuel the growth and development of the logistics sector. With over 25 million visitors expected to attend the Expo, it is vital that the UAE has the right logistics partners in place to deliver a world-class event that is reflective of the Emirates growing international stature.

Q: As a global company, how do

you go about tackling the various 29

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Intelligent SME

Success Story trade policies in terms of logistics movement? More so in a country such as UAE where the rules differ from emirate to emirate.

package and technology is pivotal to how the DHL Express operates.

Over the years, DHL has further continued to invest in retail outlets, faster transit times and improved e-commerce solutions, all of which ultimately make its customers lives easier, and engender customer satisfaction and loyalty. Not only this, but DHL has continuously shown how various IT optimization and innovation – both on a local and regional level – can aid effective cost management, and business process improvement, helping DHL Express UAE become the first logistics provider in the MENA region to receive the ISO 20000 certification for global IT Service Management Standard.

A: We operate in 220 countries

around the world which makes us one of the largest organisations offering a consistent level of service and the promise of excellence. The most difficult part of the business is still being capable of pushing our limits in creating new challenges that would help us remain in the lead while staying consistent with the level of service that we provide and increasing our margin of growth across all countries in our region and in the world. As market leaders in the region, DHL works very closely with the various customs authorities to obtain the changes and updates on customs clearance processes and inform our customers immediately, ensuring their shipping needs are not affected.

Q: Talk us through your green

initiatives, and your future plans?

Green initiatives

Q: Will the inflow of cargo be

overwhelming? How is the logistics industry equipping itself to cope up with the increase of imports?

A: Over the past couple of years,

there has been consistent growth in the logistics industry in the UAE and with Dubai winning Expo 2020, we expect this trend to continue. That is why DHL Express UAE has invested in a new AED100 million ground operations facility in Meydan that is designed to bolster the efficiency of our current systems, to enhance speed of service and reduce transit shipment times for customers importing and exporting within MENA. There have also been major developments in rail with the Etihad rail project. When finished, this will change how transport is done in the region. In terms of airports, there is an international airport every 60-80 kilometers, which would be able to cater for the growth in the UAE.

Q: How have you integrated

technology in the parcel and cargo delivery services?

A: It sounds like a cliché, but the information on the package is as important as the delivery of that

30

The more we listen to people, the more we can learn about them: who they are, why they do what they do, what they do when they aren’t working, their challenges and issues at work, what they are looking for at the event.

Sustainability and innovation towards alternative energy sources and environmentally friendly assets such as planes vans and trucks are a global emerging trend and this is something DHL is focusing on.

The delivery vans, used by DHL is the only commercial vehicle to be powered by environmentally friendly natural gas. The CNGfuelled vans produce average 70 per cent less carbon monoxide, 87 per cent less non-methane organic gas and 87 per cent less nitric oxide than traditional gasoline powered vehicles.

Future plans

It is important for us to grow across all markets in the region.

UAE and KSA are our biggest two markets and we announced major expansion plans for both. These plans will not only improve the level of service in both countries but across the whole region. But that is not all; we have plans for expansion in Egypt, Morocco, new flights to Lebanon and Qatar.

It is important that we grow and expand our services across all markets to accommodate the continuous business growth whereby exports have increased considerably over the past two decades, partly as a result of growing economic openness and because of higher oil production and exports.

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June-July 2014

Intelligent SME

From the Entrepreneur

‘It’s a myth that IT services are expensive’ Every business has unique data management requirements, which can be determined based on a number of factors such as operational processes, human resources, scale of work, and especially financial capabilities, among others. If an SME wants to save on capital expenditure, then, Cloud is the way to go, says Yasser Zeineldin, chief executive officer, eHosting DataFort, in a chat with ISME. ISME: Established in 2001, and graduated to become

one of the pioneers in IT services, tell us how your journey been so far? How competitive is this market at the moment?

YZ: Managed IT services market has certainly grown

since we started in 2001. According to a report in 2012, Frost & Sullivan had indicated that the UAE managed services market would grow at a compound annual growth rate of 17 per cent for five years. This has certainly been true in the last few years as we have seen a huge uptake for managed IT and cloud infrastructure services by both enterprises and SMEs. The most popular services that these organisations look for have been managed hosting, disaster recovery and business continuity, managed security and managed storage and back up services. Lately, we have also seen a surge in cloud infrastructure services (both private cloud and public cloud infrastructure services).

There has been an increase in managed IT services providers in the market and, thereby, the competition for quality sustenance has also strengthened over the last few years.

ISME: What makes eHDF so competitive in the trend of

IT outsourcing to overseas markets? How do you manage to keep local clients?

YZ: There are many reasons that make eHosting DataFort (eHDF) competitive as compared to overseas players.

eHDF owns and operates data centres in the UAE and provides the advantage of a local datacenter with low latency. If a company has users located in the region, it would be more beneficial for them to host in a local data centre as it offers lower latency compared to being hosted internationally.

In addition, having your IT services hosted out of a local data centre means you have full accessibility of the IT infrastructure and data centre facility with 32

June-July 2014

Intelligent SME

From the Entrepreneur local 24/7 multi-lingual support and more interaction with the service provider.

In terms of security and regulatory compliance, many organizations need to have their data hosted within the boundaries of the country and working with a UAE based / local service provider helps meet security compliance requirements.

eHDF’s business principle and model has been to provide the highest level of IT services to achieve customer satisfaction and deliver service excellence in accordance with international industry standards. This approach has helped us in maintaining our leadership position in managed services in the UAE.

ISME: What, in your opinion, is the

most important part of the business from the organisational perspective?

YZ: I’m a strong believer that technology, people and processes are the most important elements of our business from an organisational perspective.

As important as cutting edge technology, equipment, and software are to the IT sector, when all is said and done, it is people that make the real difference. At eHDF, our people are at the heart and soul of what we do.

ISME: eHosting DataFort has

won several awards such as the ‘Best Managed Service Provider of the Year’, ‘Best Co-location Provider’ as well as the ‘Best Use of New Technology’. What is the secret of constant improvement and recognition?

YZ: It’s great to be recognised for

the work, and, I’m always thankful to each and every staff member at eHDF and also our clients that contribute to our success.

We do this in various ways: continuous investments in improving our data centre infrastructure and in fact we have invested heavily in data centre upgrades this year. We always strive to deliver the best customer service and continuously invest in the best people. Above all, we constantly try to deliver innovative technology solutions to address

recovery services- how important this would be for SMEs?

In the near future, we see ourselves dependent on technology whether it’s a retail shop, providing service or manufacturing company. This makes it important that every businessman should include the IT infrastructure in their business plan.

customer challenges and enable IT to enhance their business.

ISME: Which one of the wide

spectrum of services do you expect to develop the most in the future?

YZ: We expect cloud infrastructure services to develop the most in the future.

The public cloud services are especially appealing to small and medium businesses who can buy locally-hosted cloud infrastructure services. Multiple configurations and OS flavours are also available for customers to choose from and the platform allows quick scale up thus providing a model with no capital investments on hardware.

Such solutions are imperative for businesses that require rapid provisioning at low costs, but still need reliable IT infrastructure ISME: Another important service in the basket of services is the disaster

YZ: Disaster recovery is very important to ensure business continuity for any enterprise, which includes providing continuous service through any disaster whether natural or otherwise, and especially for SMEs as their business is heavily dependent on the internet. It is important to have a coping plan, business continuity requires a company to analyse essential components that enables them to resume operations without delay after a disaster strikes.

ISME: What are the growth and expansion plans of eHDF?

YZ: eHDF has growth and expansions plans on multiple fronts.

With respect to products and services, we will also be launching new services like remote infrastructure management, Office 365 services and the next version of advanced DR services to enable customers to proactively test and monitor their DR KPIs like success rates, RTO and RPO.

Remote infrastructure management or remote monitoring and management services will be offered to small, medium & large enterprises for monitoring and managing their IT infrastructure (servers, desktops, laptops, network devices, backup, printers etc.) partially or fully. These services will greatly reduce the chances for downtime and at the same time increase the efficiency of the IT systems’ performance thereby allowing customers to concentrate on their core business without worrying about the IT infrastructure.

We will also be launching new services catering to start-ups and SMBs setting up a new office in free zones to help them fully set-up and manage their IT infrastructure.

ISME: In one of your interviews you

mentioned SMEs make up 90% of businesses in Dubai and huge interest group of yours. What percentage of your clients are SMEs and why this group is important?

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Intelligent SME

From the Entrepreneur YZ: According to a report released

in January 2014 by the Dubai SME, the agency of the Department of Economic Development mandated to develop the small and medium enterprise (SME) sector. The total contribution of SMEs to Dubai's gross domestic product stands at 40 per cent. These enterprises are a growing presence in sectors that drive growth in Dubai; sector-wise, trading SMEs account for 47 per cent of the total GDP contribution with services and manufacturing following with 41 per cent and 13 per cent, respectively.

In the same report, it showed that SMEs using advanced IT systems account for 21 per cent of the total firms, which is a clear indicator that a huge number of SMEs are yet to benefit from advanced IT solutions. As managed IT services and cloud services is probably the best option for these organisations, they don’t need to invest in upfront CAPEX and can reinvest and deploy these savings in other critical areas of the business.

We currently have a substantial SME customer base and expect this number growing substantially in 2014.

ISME: How do you attract this

market and what tailored services you can offer?

YZ: We are currently offering private and public cloud services that are most interesting for the SME sector.

eHDF’s Cloud Hosting Services provide an enterprise with the computing power, storage and network capacity, security and flexibility. At the same time, it reduces IT costs significantly and simplifies management and maintenance requirements.

Cloud computing can phenomenally decrease a SME’s overall costs including capital costs and ongoing operational costs as it is a usage based pricing model. With cloud services, the SME owner can reduce their overall risks by paying on a predictable monthly subscription model. In addition, cloud enables an SME business to deploy services faster and dynamically provision any additional capacity as and when needed. Moreover, cloud based 34

I’m a strong believer that technology, people and processes are the most important elements of our business from an organisational perspective. services are simpler to adopt and more accessible as they are available over the internet.

ISME: Bespoke usually means

expensive. Is it true in case of managed IT services or myth which we should banish?

YZ: Bespoke in our industry does not mean expensive, it definitely is a myth. It only means that there is no one size fits all solution and our services are tailored to specific customer requirements.

With our public cloud services launched for SMEs, we will have an online store with an easy to use self service portal and automatic billing and charging mechanism to enable fast provisioning.

ISME: How SMEs can benefit

from “The Cloud” model? How entrepreneurs can use this model internally?

YZ: With the rapid pace of

technological advancement, small to medium enterprises face the challenge of keeping up with bigger competitors in the market.

There are 3 types of Cloud Services which are available to SME’s namely Platform as a Service (PaaS), Infrastructure as a Service (IaaS), Software as a Service (SaaS).

SaaS and IaaS are gaining a lot of popularity amongst SME’s as they have the flexibility to use Software and Hardware Infrastructure on a pay as you model and can scale up or down their usage of the same

based on the business growth.

In addition three types of cloud service models are available for use

by SME’s which are: Private, public and hybrid cloud services. Through the process of virtualization offered by cloud computing, SMEs can pool resources and introduce capabilities such as dynamic provisioning. As a result, the cloud platform enables quick deployment times, suitable for campaigns and peak loads.

The absence of a hardware component and the shared nature of numerous other resources means that the cloud is an economical hosting option.

Unlike buying hardware with set specifications, cloud offers flexible capacity based buying options that allow the company to pay only for what they need, making it ideal for small to medium businesses.

Each business has unique data management requirements, which can be determined based on a number of factors such as operational processes, human resources, scale of work, and especially financial capabilities, among others. If an SME wants to save on capital expenditure (CAPEX) then Cloud is the way to go.

ISME: Lastly, could you please give some guidance for SMEs about the importance of ICT infrastructure?

YZ: The growth of technology

over the last decade has been tremendous including how mobility solutions have taken over both the enterprise and individual needs with androids, hand-held devices and mobile phones. And increasingly, we see, ourselves dependent on technology whether it is a retail shop, providing service or manufacturing company.

This makes it important that every businessman should include the IT infrastructure in the business plan. The rate of data creation and need for structured management typically determines the need for assisted services such as cloud computing, however, our recommendation would be to have a system in place right from inception, which can be adapted and built upon according to growing needs of the organization.

June-July 2014

Intelligent SME

Meet the CEO

‘Learn to deal with 206 nationalities, success shall follow’ 36

June-July 2014

Intelligent SME

Meet the CEO

Creating a successful business requires more than money. Among other things in this region, founders are posed with the challenge of familiarising themselves with the myriad nationalities in a growing expatdriven market. Big bets? Big Risks? You can’t ignore the issue of ‘home-countrybaggage’ loaded in a consumer’s mind, which compounds competition. One of the firms to successfully manage these concerns has been the Al Habtoor Group, with Mohammed Khalaf Al Habtoor (vice-chairman and CEO of the Group) leading the mantle. Mr. Habtoor has consolidated the Group after having taken over the mantle from his father. He has also further strengthened the family foundation.

Here he shares the inspiring tale of the journey of the Group in an up-close and personal interview with the ISME.

Q: Tell us something about education and how your journey at Al Habtoor Group start?

A: As a child, I wasn’t too disciplined during the growing up years. I was naughty, gave my parents a hard time, and, thus, they would constantly keep a watch on me. It eventually brought me really close to them. As soon as I finished high school, my father insisted to take up hotel

During the early days, the Al Habtoor Group did not exist; it was only Habtoor Engineering (a construction company) and Metropolitan Hotel on the Sheikh Zayed Road, built in 1979.

management. During the early days, the Al Habtoor Group did not exist; it was only Habtoor Engineering (a construction company) and Metropolitan Hotel on the Sheikh Zayed Road, built in 1979. Clearly, the construction industry was bigger and I couldn’t fathom why father asked me to pursue a career in the hotel industry. However, I went to England for studying hotel management and making sense of his vision.

However, I expressed my dislike towards hotel management and insisted on joining the UAE Air Force to become a pilot. He allowed me to do so, but a stint in air force for two years made me realize that hotel management was a better option.

The two years of pilot training, meanwhile, made me disciplined and appreciate the importance of team work, which I have incorporated in my life ever since.

When I returned to Dubai after completing my hotel management studies, I was summoned by my father to meet him. Instead of offering me a plush position at our hotel, he asked me start from scratch. I was stunned to know that he wanted me to start with housekeeping, carrying luggage, then work in the kitchen and take orders at the restaurant; basically understand the working of a hotel. I did not like the idea and complained to my mother.

However, she insisted that I take it up, and, so, I decided to take up the challenge. I worked for one and a half year, saw closely how the industry functions, and endured abuses from customers too. But, the experience made me the man I am today. Hence, I am thankful to him for letting me experience the reality of life.

Q: Any insights/experiences you

would like to share on the relationship you shared with your father. Any lessons you learnt?

A: My father started the business in the 70s, and I joined him in 1989. He belonged to the ‘old school thinking’, with a traditional approach to business, which, if you notice, is often the reason why big companies are successful today. I am glad he did not give in to the 37

June-July 2014

Intelligent SME

Meet the CEO

new generation’s approach and held on to his style. It has helped to large extent in shaping Habtoor group and its employees. Even today, he is not the ‘typical boss’, which implies that he likes to know what each employee is doing, he doesn’t intrude in their affairs, but wants to be updated. It is a good exercise as he can constantly monitor and advice if something is amiss. At the end of the day, he packs in enormous experience and learning from it, which is beneficial for all of us.

Q: What effect did the western education have on your life?

A: Studying in regions like USA and UK widened my perspective, helping understand people better. It offered multicultural experiences, religions, style of living and all of this has made me a better person.

On his liking for Polo:

“If you are fond of a particular thing, you should make it your

38

My father started the business in the 70s, and I joined him in 1989. He belonged to the ‘old school thinking’, with a traditional approach to business, which, if you notice, is often the reason why big companies are successful today.

top most priority and pursue it aggressively. I have been following this mantra for Polo. I had a vision to make it a popular sport in the UAE, and I am glad it has garnered a lot of support today. When I had started playing Polo, there would be just three spectators. Today, we have 3000 people attending our Polo matches. Polo has taught me patience, teamwork and the importance of time.

It is a difficult sport as compared to football or cricketyou are dealing with an animal, a beautiful one and you need to be a master of controlling. It can get very challenging, but I enjoy them (challenges).”

Q: How did you convince your father to expand the hotel business?

A: After working in the hotel

industry for one and a half years, peeling and cutting onions in the kitchen, I joined my dad’s business.

I suggested starting up more hotels as the industry was thriving, but he wasn’t keen due to the fear that

June-July 2014

Intelligent SME

Meet the CEO they might fail to attract crowd and remain empty. I understood his apprehensions. However, I had a feeling that expanding our hotels would be a successful step. So, I convinced him to spread out our brand and pursue the hospitality vertical. During the same time, the hotel industry was booming in Deira. And, thus, we started a venture in Deira, which turned out as a success.

Four years later, the focus started shifting away, towards (Downtown) Dubai. We were quick to seize the opportunity and built hotels on this side. It was precisely how our expansion plans bore fruit. Now, we are building a huge complex in the Habtoor City with three hotels (1600 rooms), and of course, expanding our footprint in other countries as well.

On success and failures:

“There is always risk in whatever you do. Even if you have a zero per cent risk and something happens in this region, you will still get affected. So the key here is to minimize the risk, and this can be achieved from your business acumen and the expertise you have. Even in our company, we’ve done mistakes. But I never got disheartened. We studied in detail about all the wrongs and made sure they aren’t repeated.

Everybody makes mistakes but it is important to learn from them and avoid repeating.”

A:

When I had started playing Polo, there would be just three spectators. Today, we have 3000 people attending our Polo matches. Polo has taught me patience, teamwork and the importance of time.

It is a difficult sport as compared to football or cricket- you are dealing with an animal, a beautiful one and you need to be a master of controlling.

We have mastered the art of networking and communication.

We know how to deal with 206 nationalities present in Dubai, which is perhaps our secret of success.

Q:How do you manage to keep your team together and motivated?

A: When we hire a person, we

envisage a career plan for him/ her. We do not want our employees to hold the same position for a long period. We want them to grow and build their careers too.

Furthermore, we offer plenty of industry exposure and ample number of opportunities. For instance, we have employees who had joined us as sales executives and have become sales directors today. The key to keep your employees happy is to appreciate their work. This will not only motivate them, but also develop their loyalties towards the company. We have instituted annual awards to appreciate and celebrate the work of all our employees--right from the lower level to the senior level.

Q: Apart from being a great CEO, you are also an amazing family person.

You are blessed with six wonderful children? What lessons have you taught them?

Q: I have three boys and three girls—the youngest is 5-year-old and the eldest is about 22-year-

On Al Habtoor going public:

For the past 15 years, we have been preparing to go public.

Presently, the Group is functioning as a public company: operations, management, governance and transparency are just like any other public company. Also, we are all set to go public. However, we have postponed the official announcement as the company is in the process of devising strategies to minimise the risk appetite. As you would know, there are several shareholders who have put their money into the business and taking care of their shares is our responsibility. We do not want our partners to face any difficulties.

Q: What is your company’s secret to achieve business success?

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Meet the CEO

old. I have never pressurised my children when it came to studies. I gave them freedom to choose the course and university according to their interests. However, I do keep a check on what they are doing.

For instance, I get a message on my mobile when they use their credit cards. In the present scenario, it can be dangerous not to keep a watch on your kids.

Q: How do you balance your personal and professional life?

A: We have the right team and the right people at our company. Our responsibilities have been wellsegregated and defined. We can, therefore, strike a balance between our personal and professional lives and do good work too.

Q: How do you plan the future of

this big group, which has 40,000 employees and multi diverse industries? What is the way forward?

A: We have budgeted for the next eight to ten years. Thus, we know exactly what projects we’ll 40

I have never pressurised my children when it came to studies. I gave them freedom to choose the course and university according to their interests. However, I do keep a check on what they are doing.

be working on and what will be our expansion plans, locally, regionally and internationally. We are undertaking studies everyday to plan our future: for instance, the possible outcomes of Expo 2020 and what we will be doing in 2021.

In the simplest of terms, we have a strategy and plan in place for our future. Right now, we may be in the top 100 companies of the region, but I want to be in the top 10 list eventually. Moreover, I want to keep my father’s vision and mission intact and be in the top 10 companies of the world.

Q: Lastly, what do you want the world to say about you as a person 40 years down the line?

A: I would want to be remembered as a person who took his family business to exceptional heights, took his father’s legacy forward and created success stories. I’d also like to be remembered as a good family person who took care of not only his children, but also his siblings and other family members.

June-July 2014

Intelligent SME

SME Booster

Let’s change the communication strategy to sell better!

In a chat with ISME’s Amey Borkar, renowned motivation speaker and author of the two best-sellers (Maximum achievement and Eat the Frog), Brian Tracy, gave a run-down on the strategies SMEs need to adopt for selling their ideas better.

T

hough the primary focus of a small and mediumsize enterprise (SME) is to increase sales and make profits, most of them seldom achieve the objective. According to motivation speaker Brian Tracy, a prime reason why most SMEs are unsuccessful is because the products and services they offer are not of high quality.

“One of the biggest challenges in today’s competitive businesses is to have a product/service that people really need, want, can use and are going to pay for.

The success of any business is dependent on the quality of your product or service. Most products sold today are not successful as they lack high quality,” said Tracy.

Speaking to ISME on the sidelines of his workshop ‘The One Day MBA--create, build, boost your business for higher profit’ organized by Right Selection recently, Tracy opined that SMEs first need to define the quality of their product. “How you define the quality of the product is you go to your customers and ask them what they want in the product or service. Quality is also determined by your competition,” added the author of best-sellers such as ‘Maximum Achievement’ and ‘Eat That Frog’. Tracy also explained that there is a direct relationship between perceived quality, reputation and profitability. “As you improve the quality of your product/service as compared to your competitor, your profits go up as you sell more, sell at higher prices, sell good,” said Tracy.

Illustrating the idea with an example, Tracy mentioned that

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SME Booster Walt Disney was inspired to build Disneyland as he found all other family recreation parks dirty and littered. “Other parks were dirty so Walt Disney decided to have a park that had no trash or garbage, not even a matchstick. He knew that parents would bring their children only if the park is clean.

And that’s how Disneyland became really successful. The product was entertaining and clean and high on quality,” he said.

While product quality is of paramount importance, Tracy stressed that a good sales and marketing strategy is also of equal significance if a SME wants to make a mark and achieve profits.

“According to studies done, in successful companies, right from the CEO of the company to the janitor, all know why their company is better than any other company. Sadly, 80 to 90 per cent SMEs do not know what their competitive advantage is. SMEs need to tell customers what makes their product superior, why they should buy from them and not from their competitors,” expressed Tracy.

Talking about the importance of a well-thought and innovative sales process, Tracy advised sales persons in SMEs to take a cue from successful companies where everybody while talking to customers says the same thing.

“Many people who start small businesses are not sales people, as a result they do not understand the importance of communicating the idea clearly. You can have an excellent product and an excellent market but if you do not have professional selling capabilities, you won’t be able to sell. The biggest mistake that business leaders make is that they think that everything they know is all that is there to know, so if they don’t know anything it is not 'knowable'.

But what they do not understand is that the amount they know is only very little and there is a vast knowledge that is required to be acquired to be successful,” explained Tracy.

Tracy also advised SMEs to manage their time well and do tasks that are only worth the time and energy. “In most SMEs, more than 50 percent of working time is wasted in doing things that are of

no value and remaining 50 percent is spent on activities that have low value. The key here is to identify the most important things (which are of high value) you do, do them all they long and improve with each doing. A sales person can rate himself between 1 to 10 on the various tasks he does and then accordingly improve upon them every day,” said Tracy.

Tips for SMEs

• The first thing SMEs can do in a competitive setup like Dubai is to hold on to their existing customers, serve them good and keep them happy. They have to communicate the idea clearly with an aggressive sales and marketing plan however still be disciplined.

• SMEs also need to assess the product and services they offer.

The quality of the product/ service can be defined by asking customers what they want in the product/service.

• It is the obligation of the company and its leader to determine the area of competitive advantage, what exactly it is and devout all the efforts of the company to achieve this competitive advantage.

• SMEs also need to reevaluate the tasks they do every day, find out which of them are important and generates revenue and work on improving the tasks every single day.

If you go to the Fortune 500 or 1000 companies, there is nobody there wasting time there and hence they are successful.

Quacking Up Dubai’s Senior Professionals

Laughter is no enemy to learning

D

oug Lipp, internationally acclaimed speaker and author, and the former head of training at Disney’s corporate headquarters, wowed his audience of 180+ senior professionals and entrepreneurs last Wednesday. Doug’s interactive Leadership & Service Magic: Lessons from Disney U learning experience, organised by Right Selection, left his audience energised and empowered.

Said Doug, pivotal to his understanding of Disney, was his experience in the mid-1980s, when corporate culture changed from the haughty ‘We are the best, why change,’ to the progressive and enlightened, ‘don’t rest on your laurels’ philosophy, which powers Disney, even today.

Charming and witty, energetic and intense, Doug shared with the audience the importance of creating a sustainable corporate culture, encouraging of innovation, transformation and growth.

His emphasis on corporate culture, when applied to the young but visionary city that is Dubai, was invaluable, as preparations for Expo 2020 gain momentum.

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SME Booster

No cash, no problem, trade without it!

Barter Services have been known to humankind for centuries, with successful implementation across several sectors of trade. Today, it has found a place in the modern economy too. One of the interesting ways of cashless exchange is the Bartercard, whose trade volume exceeds US $1.2 billion, with over 1000 corporate cardholders alone in the UAE.

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SME Booster

B

artercard was founded in 1991 in Eastern Australia with a vision to become the world’s largest trade exchange and expand its range globally. Today, the brand operates successfully in 12 countries across the world and has got staggering 55,000 members. It acts as a record keeper for global businessto-business trading; facilitates and monitors all purchases and sales undertaken by its members.

Let’s look into typical transaction that can be completed with the help of Bartercard.

A restaurant owner wants to print new menus worth AED10,000 but would like to preserve certain cash level for more urgent, maybe unscheduled expenses.

He prefers to pay in form of food and beverage items instead. A printer, who is also a member of the network, is willing to offer his services and earn 10,000 of trade dirhams. In standard barter form he would have to use the restaurant very often to be able to claim meals worth of AED10,000 .

Now, the beauty of the Bartercard network is that he is able to spend the trade dirhams in any other business, which is a member of the Bartercard. He decides to use the hotel for this instance for a business trip and presents the card instead of paying with money. The hotel owner claims the trade money from a financial consultancy firm that services his requirements. The consultants then enjoy a few business lunch meetings with prospective clients in the restaurant, choosing from brand new printed menus. The beauty of this network is that trade can exchange credits in any way, any quantities as per actual need from any other member.

ISME met with Fadi Nohra, managing director of Bartercard UAE, to explore the company offer in an exclusive interview.

ISME: Barter is a financial model

known as a form of business for centuries. Why is it the right time to start exploring this method of exchanging goods and services again?

Isn’t it going backwards?

Fadi Nohra: Bartering is one of the

Consultancy firm has client lunch meetings

Restaurant

Printer

Consultancy Firm

Hotel is using TDhms for consulting charges

Restaurant orders menu print outs and pays in TDhm

Hotel

Bartering is one of the oldest known trading systems, with the exchange of goods and services having its roots in the earliest communities.

However, bartering still has an important role to play in the 21st century.

Printer spends earned TDhms on hotel accommodation

oldest known trading systems, with the exchange of goods and services having its roots in the earliest communities. However, bartering still has an important role to play in the 21st century. Its primary benefit is the saving of money, as it enables business owners to pay for what they need by offering their own goods or services in exchange.

This allows them to preserve capital for other important expenses. Many of the services offered through a barter exchange are related to running expenses costs, such as accounting, cleaning, gifts, restaurant dining, room booking and travel. Obtaining these running expenses services through a barter transaction saves hard cash for other important areas of the business.

ISME: What is the benefit of using

this exchange model for SMEs in the Middle East?

Fadi Nohra: Launched in Australia in 1991, Bartercard has rapidly become a first-choice transaction system for companies and small businesses looking for commercial solutions that will save them cash.

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SME Booster Bartercard UAE is primarily a business-to-business set up, with transactions working in much the same way as they would with a regular plastic card. Its primary benefit is the saving of cash, as it enables business owners to pay for what they need by offering their own goods or services. This is an advantage for SME’s that are our primary client base, as they do not have the same capital reserves or liquidity of larger organisations.

By exchanging goods or services directly, they can retain higher cash levels.

ISME: What is the process of

becoming a member and what are the criteria used for establishing credit limit?

Fadi Nohra: Bartercard UAE was

owned and managed by Bartercard International, which commenced operations in 2006. The master licence was bought from Bartercard International to the UAE and MENA area in mid-2012, based on the success of this unique model of business. All Bartercard members are in business and they were in business prior to joining.

They provide their products and services to the market on the cash economy. Our role is to operate as a viable, alternative method of payment for them and generate ten to 15 per cent extra activity.

A Bartercard transaction works in much the same way as a credit or debit card transaction. Members signing up for the service receive a plastic card, which they can use to purchase goods and services from other Bartercard UAE members. They can also earn Trade Dirhams that are credited to their Bartercard UAE account upon the sale of goods and services. Criteria for membership are: any business that serves its clients by operating legally within the framework of the UAE’s statutory employment rules and regulations.

ISME: How many members do you currently have in the UAE and what percentage of them are SMEs? Fadi Nohra: Bartercard UAE has

around 1,000 cardholders in the UAE, ranging from multinationals to SMEs. We provide SMEs with the

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Fadi Nohra: Bartercard works as

sales representatives and at the same time as purchase managers on behalf of its members.

Bartercard charges are based on its performance. The charges are a service fee of 5.5 per cent in cash plus one per cent in Bartercard on the trade transaction.

ISME: How SMEs can access platform, software, experience and support from well-trained, highly experienced and professional personnel. We can facilitate an increase in their sales; generating new business for them and reducing their cash expenses by utilising what would otherwise be lost capacity, down time, or a slowmoving inventory. In this way, we can help SMEs punch above their weight and act like a much bigger organisation.

the accounts and stay on top of transactions?

Fadi Nohra: Bartercard provides

of transactions for Bartercard in the UAE?

the personal service and professional expertise of a personal account manager for all members.

There is also Bartercard’s online members’ portal where statements can be accessed and transactions reviewed. This facility also makes available templates, international directories, online auctions, real estate information and travel news.

Members can also download the Bartercard App, which includes all the services and information needed to trade.

Fadi Nohra: In promoting the

ISME: Do you allow international

ISME: What would be total value

bartering concept in tandem with the convenience of a card, Bartercard has established itself as the leader of a new business paradigm. Bartercard has over 55,000 businesses in seven countries and a trade volume exceeding US$1.2 billion.

ISME: Could you share your opinion on the future of barter in the Middle East?

Fadi Nohra: The International

Reciprocal Trade Association estimated recently that 30 per cent of the world's business is done on barter basis, and more than 65 per cent of Fortune 500 companies use barter to boost their bottom line numbers. We believe that bartering in the Middle East has a strong future. Bartercard UAE’s aim is to make an outstanding contribution to the business community in the UAE and across the wider Middle East. Our long-term plan is to cover the region, with the UAE operating as its hub.

ISME: What are the charges for using the Bartercard?

transactions?

Fadi Nohra: Being an

international company operating in seven countries with 52 offices, international trading is an essential part of our daily tasks.

ISME: How do Bartercard members

contact each other to trade goods and services?

Fadi Nohra: When members sign

up for the service, they receive an extensive on-line directory of Bartercard businesses as well as a weekly newsletter, regular e-mail promotions and invitations to events and gatherings. They also are appointed an account handler who is a valuable source of information. All these subsidiary activities add to business contacts and spread the members’ brand names through increased exposure and word-of-mouth. This generates new customers, boosts sales, increases market share and creates a competitive edge. Ultimately, it enables Bartercard members to increase cash flow, clearing excess idle stock and effectively utilise downtime.

Spe cia l co ver age

A focus on Dubai’s hospitality industry

With 140 new hotels due to come up in Dubai in the next two years alone, the hospitality industry is growing by leaps and bounds. Intelligent SME explores some interesting facets of the growth story and gets a glimpse into what the future holds for the industry…

Budget hotel industry bracing up for revolution, fierce competition Russel Sharpe, chief operating officer of Citymax Hotels, predicts strong run for mid- market segment of Dubai’s hotel industry in the coming years.

Significant economic benefits galore ahead of the Expo

By 2020, businesses within the tourism and hospitality industry, will witness key growth in direct and indirect opportunities, estimated to account for 40% of the total of new jobs created.

Exploring the events-tourism industry relationship

As Dubai firmly establishes itself as one of the leading business destinations globally, the events industry will expand and transform, feels Ahmed Pauwels, CEO, EPOC Messe Frankfurt.

A summer full of surprises

Dubai Festivals and Retail Establishment's (DFRE) summer calendar which is replete with festivals, celebrations and special occasions is aimed at allowing residents and visitors enjoy summer their own way while also positioning Dubai as a summer destination of choice and a year-round family tourism destination, in line with Dubai’s 2020 Tourism Vision of attracting 20 million tourists to the city by 2020.

June-July 2014

Intelligent SME

Special Coverage / Hospitality

'Budget hotel industry in Dubai poised for a revolution' Russel Sharpe, chief operating officer of Citymax Hotels, feels that in the run-up to Expo 2020, a majority of travellers coming to Dubai would not have the financial capability to stay in upscale hotels, thereby contributing to the growth of the budget hotel industry. In a chat with ISME, he predicts strong run for mid- market segment of Dubai’s hotel industry in the coming years.

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Hospitality / Special Coverage

Q: How would you define a budget hotel?

A: First of all, a budget or mid-

market hotel should offer quality hospitality at affordable prices.

Secondly, it should be able to cater to both leisure and business travellers with a functional and nofrills hotel experience.

At Citymax Hotels, we define ourselves as offering 4-star facilities at 3-star rates in prime city locations.

Q: Citymax Hotels offers a quality

experience at an affordable price, making you favorites among budget travellers. You, probably, must have seen this trend (of budget hotels) pick up and gain prominence. Could you comment on the evolution of the budget hotel industry in Dubai?

A: Historically, Dubai as a

destination has been synonymous with luxury. More than 50 per cent of the existing 85,000 hotel rooms are in the upscale segment. However, only seven international budget hotel brands are currently present in Dubai, representing less than 15 per cent of the accommodation segment.

In other parts of the world that number would be about 33 per cent. This, probably, gave rise to

the trend of budget hotels, which have constantly offered quality experiences at reasonably priced rates.

With the 2020 vision, an additional 35,000 rooms will be needed in Dubai according to DTCM and, consequently, over the coming years, we will see a significant growth in the midmarket sector throughout the region.

Q: According to you, what has

contributed to the growth of this industry?

A: The mid-market hotel industry

is expanding partly due to the growing number of business travellers looking for a good deal, but also due to the increased presence of budget airlines, such as flydubai and Air Arabia. In the first quarter of 2014, passenger traffic rose by 11.4% to a record 18.36 million, making Dubai Airports the busiest in the world, surpassing Heathrow for the first time.

In addition, Dubai has earned a reputation as being a very positive tourist destination. In April this year, Dubai was named, for the first time ever, as one of the top 25 places to go to, worldwide, in the Traveller Choice Awards 2014 by TripAdvisor.

As the destination develops

from a luxury focus towards a more balanced accommodation mix, Citymax Hotels is witnessing a steady growth with consistently high room occupancy rates. The vision to create a strong brand in the mid-market segment catering to budget conscious travellers has indeed proven successful, and continues to grow.

Q: In the wake of Expo 2020,

according to you, how will the scene change for the budget hotel industry?

A: In order to succeed as a mid-

market hotel brand after 2020, I believe you need to differentiate yourself in order to attract sustained local patronage in addition to overseas guests.

With affordable room rates, Citymax guests spend less on room rates which allows them the choice of spending more on the pleasures of dining.

Food and beverage is a key driver of the guest experience and a good (or bad) dining occasion can shape the guests’ overall perception of the hotel. Hence, if hotels aim at carving a niche for themselves, F&B is an important contributor to not only Citymax but any hotel’s positioning within the market. If hotels aim to be successful, then the dining

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Special Coverage / Hospitality

We are thrilled to have won two travel awards - Best Price Value Hotel, MENA Travel Awards and Middle East’s Leading Budget Hotel Brand, World Travel Awards.

The inclusion of budget categories in travel awards is a very welcoming move for the hospitality industry in this region.

outlets in the hotels need to exist as independent brands with identities so strong that they could become household names in local community.

Q: Growth of the mid-market sector

is inevitable in the coming years and budget hotels will become an important part of the total accommodation offering. Why do you think so?

A: As a tourist destination, Dubai’s vision is to double the number of visitors from now until 2020. To meet this target, Dubai will have to start catering to guests on a tighter budget. Clearly, among 10 million additional visitors, the majority will not have the wallet to stay in upscale hotels. There will inevitably be a large number of consumers with no need for frills.

Growth of the mid and even lower market sector is not just expected, it has already started and will soon become a necessity.

DTCM has realized this and is offering one-stop shop for project approvals to reduce red tape as well as various fee exemptions in order to facilitate the development of 3 and 4-star hotels.

With mid-market hotel development high on the agenda for both government and private sector alike, Citymax Hotels is currently expanding their successful business model throughout the GGC and have three more confirmed hotel developments in Dubai in Al Barsha, Business Bay and Ras Al Khaimah.

Q: Your recent win of the Budget

Travel Award goes on to show that budget hotels are pitted against luxury hotels. How fierce is the competition then? What best practices and innovations have been adopted by Citymax to tackle the competition?

A: We are thrilled to have won two travel awards - Best Price Value Hotel, MENA Travel Awards and Middle East’s Leading Budget Hotel Brand, World Travel Awards. The inclusion of budget categories in travel awards is a very welcoming move for the hospitality industry in this region. I predict that the budget category will become one

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of the most fiercely competitive categories in the near future.

In order to tackle future competition, Citymax Hotels will continue the successful business model of offering 4 star facilities at 3 star rates. What distinguishes Citymax from other 3 star hotels is the variety and high quality of the in-house restaurants and bars. Also, we offer additional services one would generally only get in a high-end hotel, such as 24-hour room service, full concierge services including porter services, full buffet breakfast, complimentary tea and coffee in your room, complimentary beach shuttle service as well as shopping centre shuttle service, full gym facility with bathrooms as well as a swimming pool.

Q: Do you think few years down the

line, a traveler coming to Middle East will have tighter budgets and no budget for frills? How do you perceive the profile to be?

A: Absolutely. The profile of the

future traveler to the Middle East

will become much more diverse heading towards 2020, with a large number of visitors on tighter budgets such as budget travellers, low-cost business travellers and economy transit passengers.

In 2013, Dubai received more than 11 million hotel guests – largely due to increased arrivals from Saudi Arabia, China and Australia.

Over the past couple of years, we have also seen a steady flow of tourist from South Asia, the Far East, the GCC and Eastern Europe.

Currently 50% of our business originates from East Europe and South Asia which we expect to continue.

In the future, I believe Dubai will receive travelers from all over the globe.

8. What does the future hold for the budget hotel industry? What are your predictions?

I think there will be a revolution in the mid-market segment with hotels changing their delivery promise and hardware to compete with the 5-star market especially in the resorts and leisure market.

June-July 2014

Intelligent SME

‘Multi-cultural population makes Dubai the ideal place for events’ Events and tourism are two industries that draw nourishment from each other. The success of one reflects on the performance of the other, and for Dubai both these industries have been delivering year after year. Here ISME caught up with Ahmed Pauwels, CEO, EPOC Messe Frankfurt, to find out his views on the future of the hospitality industry in Dubai.

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Special Coverage / Hospitality EMF has been involved in the organisation of a large number of them. According to you, how have events boosted Dubai’s tourism and hospitality industry?

A: Business meetings, conferences

and trade fairs have a considerable impact on the host city’s economy. To successfully host an international business networking event or trade fair, a city requires to have all the requisite facilities such as ideal venue options, accommodation, international connectivity, logistical and transport infrastructure, as well as an array of dining and entertainment outlets.

All of these sectors play a role in enabling a city to become a leading MICE destination and they also stand to benefit from the growth in the industry.

Dubai certainly does this better than most.

Q: Why do you believe that Dubai is the ideal place for international events?

A: Dubai’s biggest advantage is

in its location, as the emirate is situated at the heart of a vibrant marketplace, powered by a number of growing economies in the wider Middle East, Central and South Asia and Africa regions that are all in relative close proximity.

With enviable transport and logistics infrastructure in place, Dubai has grown into an international hub for trade, commerce and Meetings, incentives, conferencing, exhibitions (MICE) that serves the wider region. The city’s growing stature as a business and leisure destination means that most of the major hospitality chains are present here as well as an impressive array of dining and entertainment options.

Add to this the emirate’s long and glorious trading heritage and multi-cultural population that makes Dubai an ideal place to conduct business and hold international meetings and events.

Q: Dubai has a plethora of

exhibitions, conferences, seminars, workshops taking place every day.

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If Dubai has any drawbacks, it is really a problem of plenty. As more and more organisers realise the advantages of holding their event in the city the calendar gets increasingly crowded and venue options become more limited as a result.

Q: Why is it important to track the number of visitors attending the events/tradeshows?

A: Trade visitor trends are

challenges/difficulties faced by the events industry in Dubai and the UAE?

indications of the way a market receives and responds to any trade fair and its offerings. By tracking these trends, organisers gain a vital insight into the preferences and requirements of a particular market as well as a better idea of how to shape and modify the event to optimally match market needs.

A: From small beginnings Dubai is

Q: How has the government support

Q: According to you, what are the

now considered among the leading venues for international meetings in the region and the facilities, ease of access and range of options are unmatched.

If Dubai has any drawbacks, it is really a problem of plenty. As more and more organisers realise the advantages of holding their event in the city the calendar gets increasingly crowded and venue options become more limited as a result.

been for such events?

A: A lot of our success is built on

the great cooperation, counsel and support we have received from government authorities.

This has helped us immensely in being able to do business in the region, reach our potential markets, and work on expanding our presence and widening our event portfolio according to future market requirements.

Q: With regards to EMF, what is the

Q: In the wake of Expo 2020 and

A: Our events, catering as they do

A: The events industry is, by

percentage of local participants as against international participation? If the local participation is less, what can be done to improve their involvement?

to a vastly varied market, do tend to attract a strong international complement, as they are seen as an ideal platform for global brands to reach markets in the region that are otherwise difficult to access.

That said, we have seen an increasing share of local exhibitors looking to widen their regional reach at our events. We have also seen participation of Dubai SME at our recent events.

also on a general note, what are your thoughts on the future of the events industry? Do you think this industry can ever get saturated?

nature, a flexible one and it transforms itself in keeping with the changing market. As Dubai firmly establishes itself as one of the leading business destinations globally, the events industry will expand and transform.

While some of the events that are immensely popular today may lose their relevance ten years from now, there will be others that will rise in stature.

June-July 2014

Intelligent SME

Special Coverage / Hospitality

A summer of celebrations and promotions!

DFRE’s summer calendar, which features Modhesh World, Ramadan in Dubai, Eid in Dubai -Eid Al Fitr and Dubai Summer Surprises, will complement the global destination marketing drive, titled “Summer is Dubai” that is being undertaken by the Department of Tourism and Commerce Marketing to position Dubai as a summer destination of choice for tourists from around the world.

T

he Dubai Festivals and Retail Establishment (DFRE), an agency of the Department of Tourism and Commerce Marketing (DTCM), is aiming to further enhance the emirate’s internationally renowned image as a top summer destination by launching a sustained period of celebrations and promotions, lasting for almost three months, for the benefit of residents and visitors.

DFRE will set off the summer celebrations with the start of the summer vacation in June, as families and tourists arrive in

54

Dubai in large numbers every day to enjoy the multiple experiences in a city that is built for summer.

DFRE’s summer calendar, which features Modhesh World, Ramadan in Dubai, Eid in Dubai -Eid Al Fitr and Dubai Summer Surprises, will complement the global destination marketing drive, titled “Summer is Dubai” that is being undertaken by the Department of Tourism and Commerce Marketing to position Dubai as a summer destination of choice for tourists from around the world.

Retail excitement will reach a new high with various promotions

that will be launched in collaboration with DFRE’s Strategic Partners and the Dubai Shopping Malls Group, offering amazing prizes throughout the summer period.

Spearheading the summer excitement will be Modhesh World, the best indoor family edutainment destination in the Middle East, which will open at the Dubai World Trade Centre in June. The edutainment feature will run all through the summer, continuing to entertain families and children until September.

Even as Modhesh World

June-July 2014

Intelligent SME

Hospitality / Special Coverage continues to receive its loyal visitors, mostly children, DFRE will launch Ramadan in Dubai, from 29 June to 27 July, which will showcase a number of cultural activities reflecting the importance of the Islamic month including the Dubai International Holy Quran Award, Ramadan Forum and the Ramadan Tents, each of which will be a separate hub dedicated to enlightening visitors on Islamic traditions. In the last two weeks of Ramadan, leading up to Eid Al Fitr, shoppers will also have the opportunity to participate in the “Eidiyat Dubai”promotion that will be run by DFRE in conjunction with the Dubai Shopping Malls Group.

From 28 July to 1 August it will be Eid in Dubai – Eid Al Fitr, which unites local communities and people from different cultures in celebration of Eid Al Fitr. Among the highlights of Eid in Dubai-Eid Al Fitr will be musical concerts, activities for the entire family and exciting promotions.

Dubai’s summer season will reach its pinnacle in grand style with the launch of the iconic summer extravaganza, the Dubai Summer Surprises that will run from 2 August to 5 September. The 17th edition of DSS will feature a number of world-class events and activities combined with fabulous promotions aimed at making summer shopping an enriching experience.

Unveiling DFRE’s 2014 summer calendar, HE Laila Mohammed

Suhail, CEO of Dubai Festivals and Retail Establishment, said: “We are pleased to announce this new calendar of festivals, celebrations and special occasions. This fits well into our strategy of boosting the festivals sector and retail industry in the summer, which, in turn, becomes key drivers of tourism growth. While keeping up the citywide momentum through a number of events and activities that will allow residents and visitors to enjoy summer their own way, our summer line-up will serve a dual purpose of positioning Dubai as a summer destination of choice and a year-round family tourism destination, in line with Dubai’s 2020 Tourism Vision of

attracting 20 million tourists to the city by 2020.

“Our summer celebrations will also keep open our continuous channel of communications with the private sector to help us understand their needs and challenges and come up with mutually beneficial strategies for launching future festivals that are designed to revitalise the retail sector, which along with the tourism sector, plays a pivotal role in Dubai’s economic growth.

“Our commitment to developing the festivals and retail

sector has helped establish Dubai as one of the most popular tourism destinations in the world, and inject billions of dirhams into the emirate’s economy. As such, the summer season is as equally important for us as the winter season for tourism, and we are gearing up to make this year’s summer period a resounding success for all our partners and visitors through Modhesh World, Ramadan in Dubai, Eid in Dubai and Dubai Summer Surprises,” Ms Suhail added.

Mark your calendar Modhesh World [June – September]

Modhesh World is one of the region’s largest indoor entertainment facilities, offering a multitude of activities catering mostly to families and children. The family-themed event, which becomes operational every year during the summer months. During the summer, in addition to Modhesh World, the Dubai World Trade Centre will also play host to Dubai Sports World, one of the Middle East's largest indoor sports events.

Ramadan in Dubai [29 June – 27 July]

Inspired by the spirit and values of the Holy Month of Ramadan, DFRE joined hands with government departments and official institutions to launch a cultural initiative, the ‘Ramadan in Dubai’ campaign.

This latest season in DFRE’s calendar encourages participation by local communities to provide valuable insights into the month of reflection and self-restraint through various activities based on Islamic values, heritage and tradition. With Dubai being home to people from different cultural backgrounds and faiths, ‘Ramadan in Dubai’ has become an opportunity to promote crosscultural understanding and enlighten residents and visitors from non-Muslim communities on the Islamic and Emirati way of life through events and activities such as the Dubai International Holy Quran Award, Ramadan Forum and Ramadan Tents.

Eid in Dubai [Eid Al Fitr] [28 July – 1 August]

‘Eid in Dubai’ is a social initiative launched by DFRE in 2008, aimed at reviving the true Islamic values, and Emirati traditions during the Eid al Fitr and Eid Al Adha. Social and cultural events are the highlights of each edition, with plays, musical concerts, cartoon character and theatrical shows providing entertainment for families.

The festivities also feature retail promotions at malls and in the souks, as well as special holiday packages offered by hotels across the city.

Dubai Summer Surprises, [2 Aug – 5 Sept]

A unique summer event, the Dubai Summer Surprises (DSS) with its slogan “Big Fun For Little Ones”, is aimed at making it a fun experience for families and imparting knowledge to children through edutainment.

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Sales and Marketing

Protecting your business name, legally The UAE will shortly be implementing a new law intended to combat counterfeiting and other types of commercial fraud.

The new legislation aims to enhance and strengthen the UAE's existing IP enforcement regime, and increase the maximum penalties that may be applied to offenders. However, the draft law only permits action to be taken in respect of counterfeits bearing "identical" trademarks.

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t remains to be seen whether the scope of the new law may be extended to cover 'lookalikes' when it reaches the Ministerial review stage.

As presently drafted, the law further underlines the importance (particularly in the UAE) of ensuring that all key trademarks are registered in every key territory in the Middle East. It also increases the likelihood that applications corresponding to brands which have not been filed as registered trademarks will be filed by counterfeiters, to forestall the risk of a claim under the new law.

Here are the top five steps to take now to protect your trademarks.

Do a trademark audit

Any gaps in a portfolio could allow hijackers to acquire your marks. The Ministry of Economy will not necessarily investigate whether the applicant for a particular trademark is the ultimate brandowner, and it is relatively common in the UAE for licensees, agents and distributors to apply for the mark themselves.

Although this is often claimed to be a defensive move (i.e. to prevent the mark from being registered by a third party), the applicant is often unwilling to assign the rights to the brandowner, particularly if it can be used as a bargaining chip in the event of a dispute.

Best practice would be to carry out an audit to determine the gaps in your portfolio and then fill these gaps before the new law takes effect.

Tighten up your portfolio

Once any gaps are identified, your company should file applications to address any identified issues and close the gap. One common area that is frequently overlooked is the Arabic equivalent of the established mark, which is often used alongside the English brand name.

Katie Withers is a senior legal consultant in the Intellectual Property and Technology Group DLA Piper Middle East

Best practice would be to carry out an audit to determine the gaps in your portfolio and then fill these gaps before the new law takes effect. in the UAE, and ultimately can lead to cancellation of registered trademarks. It is essential to ensure that registered user agreements are filed promptly, because current delays at the Ministry meant that they are likely to take at least 12 months to complete the recordal process.

Plan your enforcement campaign

Businesses should take advantage of the current appetite to tackle counterfeits at a federal level, and ensure that they are using all means at their disposal to tackle misuse of their trade marks. In addition to the specific anti-counterfeit measures that are available under the new law, it is also possible to start proceedings under the UAE's trademark law and also rely on border measures that are intended to prevent fake

goods from entering the country.

In the future, the new law has substantially increased penalties that may be applied.

Publicise successful actions

In this region, perhaps more than anywhere else, publicity surrounding successful anticounterfeiting activities is likely to have a deterrent effect on other infringers. This is particularly the case since the new law requires that all details in the possession of the counterfeiter which pertain to the shipment must be disclosed to the authorities. Brand owners should work closely with the relevant authorities in the UAE to ensure that their joint efforts are directed at identifying and taking further action against other members of the counterfeit supply chain who may be identified as a result of this new provision.

Record all trademark licences on time

The consequences for failing to record a licensee as user of a trademark are particularly onerous

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Insurance

Credit card holders, be wary of the freebies!

Although some premium cards such as platinum and gold cards offer reasonable cover, many of the standard cards have very restricted insurance and therefore should not be taken at face value nor should it be used as a substitute for standard insurance, says Sandi Saksena.

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t never fails to amuse me when I listen to ads on the radio touting the benefits of all those advantages that go with a credit card. The ever vigilant advertising agencies and PR firms who have a pulse on the market are tops in their jobs as they turn out convincing ads for their clients, the issuers of the cards who manage to find just the right nerve--Insurance-medical, life, disability FREE!

Stuck in traffic, stationary for more than 10 minutes at a time I called up this bank.

After what seemed like a very long time of my ears being subjected to dreadful music and repeated recordings of how my call was important to them I was finally connected to a tele sales person.

On my first query he went into the whole spiel not letting me get in a question at all!

Patient that I am I just let him rattle along till he said ‘hello are you there?

“Yes’ I said, “If you have finished extolling the virtues of this card could I ask you a few questions?”

“Of course Madam,” came the perky reply

“It’s about this free medical and life insurance that you are offering.

1 What is the maximum coverage for medical?

2 In which countries is this valid?

3 Can I go to any doctor or hospital or do you have a specific network 4 Will I have to pay and then get reimbursed or do I just show them my credit card and I assume some documents saying I am covered and they will honor this?

5 What documents and claim form do I need to submit?

6 What is the level of the life Insurance If I have an outstanding on my card and I die will the issuer of the card take what money is due to them and give the rest to my beneficiary?

7 Can I name a beneficiary for my life

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Insurance insurance?

8 Do I need to fill in any health and lifestyle Questionnaire?

9 Will I need to undergo a medical?

10 If not, will any health conditions result in my claim being treated as null and void?

11 Which is the company that is underwriting this policy? Can I get the policy schedule (which spells out the do’s and don’ts)?

Silence at the other end! ‘Hello, are you there?’

“Yes, yes madam it’s just that I am confused and do not have all these answers. Besides, nobody has ever asked me so many questions before. I will have to get back to you. You know this is a special offer. It is FREE we are giving you all these advantages without a charge or just a minimal payment for added features. It’s your choice to take it or not”.

Whoa I must have ruffled some feathers!

Financial institutions today offer many extras to entice customers to apply for their credit cards and/or charge cards; one of the extras commonly offered are free health, travel, disability and life insurance. These extra can lead to confusion for many potential customers specially travelers.

Although some premium cards such as Platinum and Gold Cards offer reasonable cover, many of the standard cards have very restricted insurance and therefore should not be taken at face value nor should it be used as a substitute for standard insurance

As a cardholder, you must be aware that there are no free lunches. Financial institutions have a penchant for giving you a reward with their left hand, and simultaneously charging you for it with their right hand.

In any case, it always pays to be safe than sorry. Awareness of a host of complicated rules and regulations before you let yourself to be swayed away by these socalled lucrative offers is the key.  Restriction on medical coverage is the most common. A client of mine who underwent emergency medical treatment in the US while

Sandi Saksena is a financial planning counsellor with over 15 years experience in advising on life, disability and critical illness insurances. She focuses on exit planning for SME owners, working with accountants and lawyers to provide holistic solutions. Sandi can be contacted by email (sandra. saksena@nexusadvice.com) or by mobile (0506517963). on a holiday was in dire straights as the hospital refused to honor his claim that he was covered through his credit card. Many phone calls to the numbers in the UK and in Dubai yielded no results and on his return on producing all the bills he has not been reimbursed.

He has now taken legal action.

He incurred extra expenses on international calls; some associates eventually settled his bill. He has yet to recover from the mental trauma he has experienced.

Would you like being in a similar situation?

Check that the medical coverage is adequate for the destination that you are traveling to. For example, it is recommended that travelers have unlimited medical cover for US travel as medical expenses can be massive.

Some cards only offer 'travel inconvenience’ which occurs in the case of flight delay, missed connections and delayed or lost luggage or for 'travel accident insurance for example loss of life or limb in an accident during

As a cardholder, you must be aware that there are no free lunches. Financial institutions have a penchant for giving you a reward with their left hand, and simultaneously charging you for it with their right hand.

transport such as a flight but not during the trip.  Note your travel insurance may be void if you pay for your trip with cash. This is very important as a claim was refused because the persons paid for the trip deposit in cash and not with their card.  Most policies have excess that needs to be paid if you make a claim. Pre-existing medical conditions are covered only if the customer specifically applies to the insurer and they approve.

A standard annual travel policy will not be suitable: these policies normally only cover you for trips of up to a month.  Read and understand the conditions and restrictions found in the product disclosure statement before you travel. Check all the small print on your policy before you make a decision even though this insurance may be 'free' Free also means no obligation to pay and terms and conditions can be changed at any time without notice!!

Consumer surveys match closely what financial planners and insurance experts recommend: Health insurance is a 10. You have to have it. But cancer insurance is only a 2.8. They say it’s better to have good health and life policies.

Speaking of life insurance, our panel gave term life a 9.2, which means it’s solid investment.

You'll get offers from your credit card company for things like life and disability insurance to cover what you owe. Our experts were unanimous in saying it's a lousy deal. They gave it a bottom score of 1.0.

A good rule of thumb is to purchase insurance only from an insurance provider. And buy policies that are comprehensive.

Insurance should cover catastrophic losses that you’d be hard-pressed to cover on your own.

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Insurance

Understanding your insurance package Are you planning to establish your business in the UAE or the GCC region?

Here are the minimum insurance requirements needed to run your business smoothly.

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Insurance

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our accountant and attorney are extremely crucial to your business, however, if you are a startup, you would also want to look at another important person—the insurance agent.

In this fast-paced and competitive world, an entrepreneur often finds himself busy, with too many things on his mind.

It would therefore be of great help if he has an agent who can handle all of his insurance needs.

When it comes to insurance, there are ample of policies available specifically designed to cover most of the insurance needs of the small or medium businesses.

This wide range of insurance covers can protect your company’s assets, liabilities and a range of other risks. These covers include accidental loss or damage to property (buildings and contents), loss of money, accidents to employees and liabilities to third parties.

If you are a SME and planning to establish your business in the UAE or in the GCC region, you should be aware of the minimum insurance requirements needed to run your business. These are different from the requirements needed in France or the EEC in general.

AXA in the Gulf Present in the region for more than 60 years, AXA is one of the largest international non-life players in the GCC offering a wide range of insurance products and services for corporate and individual customers. AXA in the Gulf was recently awarded Insurer of the Year for the 5th consecutive year and Personal Lines insurer in 2014 at the MENA Insurance Awards and best Motor insurance product by the Banker Middle East in both UAE and KSA.

Your insurance package should include:

A health insurance policy for you, your employees and your families; Although it is not mandatory in some countries / emirates, it allows you to flexibly retain your employees through providing health insurance for them. It is usually possible to complete this health coverage with death/ disability insurance products and many others under “Employee Benefits " covers.

Motor fleet insurance which is mandatory in the GCC. Covers are offered for cars owned by the company and used for both personal and commercial purposes.

Liability products which covers

the legal liabilities a business may incur for property damage and bodily injury. Covers are for liabilities to your employees, customers and third parties and for the products and services arising out of your business activities. This could be important as well in case your business is located in the “Free zones” of the region, where every country has its own regulations.

Your insurance package should include:

A health insurance

policy for you and your employees It allows you to flexibly retain your employees through providing health insurance for them.

Motor fleet insurance

These covers are for cars owned by the company and used for both personal and commercial purposes.

Liability products

This is important to cover the legal liabilities a business may incur for property damage and bodily injury.

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Sales and Marketing

A friend in need is a mentor indeed

You have played the vital part in creating the success story that your business represents but is your way of working stagnating your company? Well, maybe it's time to consider appointing a mentor. Simon Hodges explains the idea.

A potentially hurtful truth!

There is a simple reality in running a business that once you employ people and sell your product or service it becomes necessary to communicate what you would like to happen. As your business grows and you employ more people and sell more stuff, communication becomes more of a challenge because effective communication is not simply about telling your people to do their job or running a clever marketing campaign. If it was, the surveys on customer satisfaction with the level of service provided by

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organisations in the UAE would not generally be so poor.

As the owner you have clearly played the vital part in creating the success story that your business represents; in fact if you were not working all the hours you are given your business would very quickly fail would it not? Well this might be true, but I would suggest you might

perhaps consider whether the way you run your business is preventing your organisation from achieving its full potential?

Am I preventing success?

Let’s have a quick look at a fact of business life. You are

undoubtedly regarded as an expert in what your business does but does that automatically mean you are an expert in running your business? Many entrepreneurs find managing an organisation a somewhat tedious exercise but if your business employs more than thirty people this is the only skill that you need to take your successful business to the next level.

Failure to consider this aspect means it is almost certain that you are spending very little time on planning how you will get to where you want to go, which means it

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Sales and Marketing Simon Hodges, CEO, Alchemy Network Middle East has recently launched the franchise network in the Middle East. Alchemy Network is a UK-based worldwide network of consultant partners, who work alongside owners and operators of SMEs to help bring them financial success, and eventually introduce them to systems that will relieve them from the mundane day-to-day running of the business,and allow them time to concentrate more on what they do best. is very unlikely that the business will get there! Business leaders that plan for the future which includes the fact that their business will be able to operate without them build true value.

Furthermore, by solely concentrating on sorting out today’s issues will probably result in creating confusion in the minds of your employees and customers.

If you do not believe me, ask a trusted person not connected with your organisation to ask 5 to 10 employees what is expected from them in doing their job. If the answers

represent different perceptions based on what your employees believe you want, you have a problem.

What should I do?

The first thing is to recognise that you probably need a bit of help and be prepared to have an open mind to listening to new ideas. The concept of mentoring business leaders is well established; for example did you know that Bill Gates (Microsoft) employed a mentor? It is therefore not a sign of weakness and making the right appointment could be the best business decision you make!

Helping a mentor to help you

A mentor is not an employee but someone who from an independent viewpoint constructively challenges what you are doing. Do not be put off if this approach results in numerous questions, which will in fact help you to sort out your ideas. I have set out below four simple actions that you can take to make sure the process of appointing a mentor works for you: In order for a mentor to be able to help you, they need information about your business and its objectives. Sitting down and explaining your business is one of the first things to do together, the objective is to agree what success means to you.

Carry out an induction process. While it is important for the mentor not to become an executive, it is important that they understand your business, which means that they need to visit all your business locations and have the ability to talk to your employees to find out what the issues are.

Set up a regular reporting process of the trading results and financial position of the business so that both of you are in possession of the same facts. Plan to meet once a month, together with your senior team with a set agenda.

Listen to the advice. It is not always necessary for you to implement every idea from your mentor but it is important you at least give them your full consideration.

By adopting the approach outlined above you will begin to manage your business in a different way that will help you significantly grow it. Good luck!

Choosing a mentor There are three actions to take when considering the appointment of a mentor: 1. In your role, you are very alone.

No one is interested in your problems so the first criterion for your mentor to have is an interest in simply listening to you. Often solutions to perceived problems just materialise through the simple process of talking through the issues.

2. Employ someone who does not want to run your business but is happy to play the role of a nonexecutive advisor. It is not always easy for a business leader to stop being an executive so choose one that has a track record in carrying out this role.

3. Ensure that the person understands how to build an organisation rather than simply being an expert in one aspect such as finance, human resources or marketing.

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Business Law

Getting the basics right!

Robert Bruce-Mullan has been instrumental in driving sales growth into companies spanning diverse industry sectors.

His area of expertise lies in sales and marketing and several other networking and business set-up ventures.

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Business Law

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he recent announcement of a successful Expo bid has turned the tide in the favour of Dubai which, in 2007 suffered a financial setback however now sports a consistent growth pattern, exhibiting a renewed vigor and an improved climate for businesses to operate.

This has impacted the SME segment of the Dubai economy, where the number of start-ups is growing in line with confidence in the marketplace. The Dubai Department of Economic Development issued nearly 5000 new business licenses during the final quarter of last year, a 20 per cent increase as compared to the figures of 2012. Geographically, there are clear benefits of setting up business in Dubai, with its strategic location as a centre for tourism as well as a trading hub for other parts of the world, not to mention its world class infrastructure, political and social stability.

For existing SME’s, the future looks bright with additional foreign investment flowing in from China, Russia, Africa and the UK, as well as other key global markets. This in turn creates new opportunities for domestic and international trade, for partnerships, strategic alliances and for continued growth.

Additionally, expat residents are taking the leap of faith to set up on their own businesses, having visited the region, seeing the possibilities for themselves.

One of the first steps in the process of setting up a business in Dubai, further to working out the concept of your new company and drawing up your business plan, is company registration, supported by the advice of an experienced consultant.

Step 1

To avoid any of the common problems encountered when registering a company, it is critical to identify an experienced consulting firm who can hand-hold you through the process. It’s also important at this stage to be 100% clear on your business plan to set things on the right path.

Robert Bruce-Mullan has been instrumental in driving sales growth into companies spanning diverse industry sectors.

Robert's area of expertise lies in sales and marketing and several other networking and business set-up ventures.

To avoid any of the common problems encountered when registering a company, it is critical to identify an experienced consulting firm who can hand-hold you through the process.

Success

Planning

Documentation

Registration

Step 2

After detailed discussion with your consultant, it’s time to select the type of company and the government authority with which it needs to be registered.

Options are to register on the mainland, offshore or a free zone.

In the case of the latter after checking the cost break-down, the documents required and the expected timeframe, you must then decide on the free zone that suits your company best. In the case

of mainland registration, a UAE national partner or a service agent needs to be on board.

Step 3

After deciding on the legal jurisdiction for your company registration, a clear service contract with your consultant needs to be in place, clearly defining the scope of work alongside any additional details, including all of the necessary documentation.

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Corporate Governance

Act like a listed company to take your business up a gear UAE has 130 companies that are listed on the three stock exchanges and they follow a set of stringent rules which make them more efficient and competent to take better decisions. If SMEs in the UAE imbibe habits of the listed companies, they can well take their businesses to the next level, says Mark Fisher.

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he 130 companies that are listed on the UAE’s three stock exchanges follow a variety of rigorous rules that govern their actions as publicly tradable entities. Requirements range from preparation of financial

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statements to the make-up of the Board of Directors and public disclosure of significant events affecting the business. These rules are overseen by the companies’ regulators – the Securities and Commodities Authority (SCA) in the case of companies listed on

Dubai Financial Market or Abu Dhabi Stock Exchange, and Dubai Financial Services Authority (DFSA) for companies listed on NASDAQ Dubai. Listed companies are also subject to informal pressures, such as justifying their performance to large numbers of shareholders and

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Corporate Governance regular questioning by the media.

So what does any of this have to do with the tens of thousands of SMEs in the UAE that are unlisted?

The sensible answer is: a great deal. They can learn valuable lessons from studying how listed companies behave, and can benefit from copying it to a greater or lesser degree. The demands of being listed promote best practice in many areas of business life, resulting in greater efficiency, better decision-making and increased ability to cope with risks and seize opportunities. These are the ingredients of success for any business, listed or not.

A key requirement of being listed is to produce properly audited financial statements. In the case of NASDAQ Dubai companies, these must be prepared on a comprehensive accounting basis such as International Financial Reporting Standards (IFRS). This can be onerous even for large companies; so many SMEs around the world follow a less challenging IFRS standard tailored for their needs. Millions of SMEs have adopted this in the past five years, according to The International Accounting Standards Board.

In the UAE, unlike many countries, there is as yet no legal obligation for unlisted companies to prepare audited accounts.

However the practice is gaining traction and is recommended in Dubai SME’s Corporate Governance Code. The advantages to business owners range from elimination of possible fraud to identification of both wasteful and productive expenditure, as well as gaining an accurate picture of the company’s overall financial health. Moreover if a company wishes to obtain a bank loan, or attract a new investor, it can be critical to the deal to produce reliable financial information. The company also has the option to put some of its financial data on its website so that the public can see it and – hopefully – be impressed by what it reveals.

Listed companies must also disclose information about who owns them. Not every minor shareholder, but the main ones.

In the case of a NASDAQ Dubai company, anyone owning more

Mark Fisher is vice president, corporate communications, at NASDAQ Dubai. He has worked as a solicitor in Hong Kong and the UK.

Listed companies are required by regulation to publicly disclose events and plans that might affect their share price. SMEs should consider providing similar transparency. than 5% of the shares must be identified. This goes a long way towards building trust and confidence in the company, including among people who do business with it or are considering doing so. Ordinary SMEs can also benefit from making clear who the main owners of the company are, as well as providing information about the background and skills of Board directors and senior executives.

Corporate governance best practice for listed companies includes appointing independent directors to the Board, meaning directors who do not have close personal or commercial ties to the company. Unlisted SMEs would do well to follow the same process, choosing well qualified and knowledgeable candidates, to broaden the quality of decision-making and ensure that diverse points of view are discussed. Another feature of good governance for listed companies is to formally ensure that first class risk management systems are in place, to enable risks to the business to be identified as early as possible and handled effectively.

Listed companies are required by regulation to publicly disclose

events and plans that might affect their share price. SMEs should consider providing similar transparency. People will have more confidence in your company if they understand what it is doing and why and are aware of its expansion and successes. Making effective use of your website and the media is key to this strategy.

Well crafted press releases can tell a persuasive story about what your company is achieving and ensure that a large audience hears about it. Interviews with journalists and use of social media such as Twitter can spread your message far and wide.

So even though your company isn’t listed, it would do well to copy the habits of those that are.

SMEs need to hab-it!

• SMEs need to produce properly audited financial statements as it eliminates the possibility of frauds and identifies productive as well as wasteful expenditure.

This can also be put on the company website.

• Like listed companies, SMEs must also disclose information about who owns them. This goes a long way towards building trust and confidence in the company, including among people who do business with it or are considering doing so.

• Choosing well qualified and knowledgeable independent directors to the Board, to broaden the quality of decisionmaking is another best practice of listed companies.

• SMEs can also make use of their website to connect with clients and customers and utilise the potential of the media to spread their message far and wide

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Leadership

The real value of value-added services for a small business Today a ‘value-added’ proposition is inextricably linked with business success, and has come to the fore of business thinking for many companies. ‘Value-added’ services,in particular, have created a decisive advantage, especially for small businesses.However, the real value lies not in the product or service offered per se, but in the overall eco-system created, writes Neil Petch.

Website and Domain Name

Facebook page

Mentorship Logo

Networking

Blog

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Brand Identity

Customers

Business Bank Account

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ll ready to start your business? Company name, check! License and registration, check!

Some twenty years ago that would have probably been enough for a small business. Today you are far from ready. You need a website and a domain booked.

Logo. Actually, not just a logo, a brand identity. Business cards. A prestigious business address and a business phone number to list on the business cards. What else?

Definitely a Facebook business page. A business bank account, no doubt. Today, these are all standard requirements for a business.

There’s a lot of ground to cover for a new business, regardless of size. The checklist can seem endless and overwhelming. What’s more, you need all of these things set up from day one of operation, because they are all essential requirements and can have quite an impact on the success of your business. Neglect one thing, and you’ll experience soon enough the unexpectedly damaging consequences it may have on your business.

But, with a checklist as long as your arm, how long till the day you can actually get to run your business? Many small business owners find themselves

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Leadership challenged by all these ‘standard’ requirements, and they try to prioritise one over the other, in order to cope. But prioritising is not the answer, either.

Neil Petch is chairman of Virtuzone, one of the most dynamic and fastest growing company set-up operators in the region.

Website and domain name

Today, a company website is as vital as a mobile business phone was 20 years ago, or an email address 10 years ago. Your customers, prospects and partners need to be able ‘find’ you online and learn about your business.

But you don’t need to spend hundreds of thousands of hard earned money on developing a fancy website. A clean, simple and functional website with easy navigation is all you need and this is something you can get done quickly and efficiently.

Facebook page

for your business and other social media channels: the truth is that if you’re not online today, you don’t exist. You need to have presence on a social media platform where you can reach your customers (and they can reach you too), and establish a two way communication path: share information and updates about your business, products or services, and respond to enquiries.

Nowadays, it’s more likely for a customer to reach out to you on Facebook than write an email.

You need a brand identity that is relevant to your business and looks professional and distinct too. So,when you see it placed on yourwebsite or on your door, on business cards and collateral materials, it stands out.

Brand identity

Small companies don’t have the luxury of calling for an agency pith to brief their brand identity needs.

Most of the times, it comes to asking a designer acquaintance to develop something in his spare time. Sometimes, if you’re lucky, you can get a decent logo, but for the most part, the result is not something you’re happy with, but end up using anyway, thinking it’s an interim solution, and that you will change it later, when you’ll have money to spend on such frills, like design. It’s clearly not a good logic. A well-thought out and professionally designed

brand identity is a must for every business, especially for a small one. You need a brand identity that is relevant to your business and looks professional and distinct too. So,when you see it placed on yourwebsite or on your door, on business cards and collateral materials, it stands out.

business is to separate entirely your personal finances from your business, from the very beginning.

As soon as you have your license and registration, open a bank account for your business and make sure to conduct all your business banking activities using that account. A sound business activity coupled with financial discipline in the beginning years, will also improve your chances of getting a bank loan later on.

Mentorship

As with almost everything in life, practice makes perfect and experience enriches us with lessons, abilities and skills that allow us to improve and grow. We can learn from success. We can learn from failure. We can learn from our own experiences and we can learn from others. When it comes to building a successful company, experience is one critical ingredient, so what we can learn from others – be that a mentor or a networking group - becomes a very valuable resource.

Covering these key requirements while you’re getting ready for business is not a guarantee of success, but it will certainly put youon the right track. Keep in mind that it’s not as hard and costly as you may have thought. At Virtuzone, for e.g., we have introduced several services readily available and affordable, designed around the requirements of new companies setting up.

Give yourself the best chance to succeed and making sure you always get the added value.

Business bank account

The key to managing your finances efficiently as a small

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June-July 2014

Intelligent SME

Telecom Talk

Innovation is the lifeblood of SMEs SMEs today want more than just value for money. They want to offer bespoke experiences to their customers and make a valuable contribution in their lives.

This trend is a harbinger of the large growth the SMEs are poised for in the coming years, says Vikram Chadha, vice president of SME Marketing, du.

D

riven by passion, SME owners today are innovative and agile, always striving to make a difference in the lives of their customers. These are traits which also resonate within our SME team at du; we are passionate about the SMEs in UAE, we live and breathe their success, and want to be part of their success stories.

Just as innovation is an SME’s lifeblood, our team too values innovation above anything else. We constantly work towards meeting the ever-changing needs of our customers. With the clear understanding that an SME wants more than just value for money, we are committed to delivering solutions that offer price predictability and transparency, alongside a trusted service that allows them to make their purchases in an opex model, thereby allowing them to invest capital into their business.

What further sets du apart is the speed at which we are able to deliver innovative products; we can respond quickly to the changing needs of SMEs. This allows us to continually add value to our SME customers, by giving them to-the-minute solutions, offerings, services and applications. This has enabled du to become a complete service provider in the SME space, offering a complete range of mobility offerings as well as managed services offerings.

There are several key factors that have had a significant impact on the SME marketplace in the UAE. These, which I will highlight below, are the main reasons that SMEs feel more confident in connecting with du.

Wide range of telecom services

We have gone from strength to strength, clearly solidifying our portfolio. Our customers can choose from bundled solutions, including products such as Office Connect, M2M bundles, as well as managed and hosted services that provide SMEs with access to an ever-growing

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Intelligent SME

Telecom Talk portfolio of services including M2M, Managed Security, Managed Servers and more.

Vikram Chadha is the vice president of SME Marketing, du.

He has executive-level international experience in general management, marketing P&L, product management, sales strategy and management responsibility with over 14 years experience in Asia, Africa, America and Middle East in the telecommunication sector. He has extensive senior expertise in international telecommunications marketing, sales, business development and customer experience. He brings with him a lot of marketing experience in the consumer, enterprise and SME segments.

Easy to do business

One of our biggest strengths is our team. They want to serve customers and do their best for them, no matter what role they play in the company. We go to the customer, rather than having them come to us, because we understand that time is money and we want to make business as convenient as possible for them.

Quick to respond

Market needs are in flux, and, in line with this, the behaviour and habits of our customers are constantly evolving. To meet these ever-changing needs, our SME team is able to quickly respond to whatever the market desires, by introducing new products and services to the market that are always relevant to its current needs. One strong example of how we innovate to make a difference is our Business Advantage Plan, which has received rave reviews from the SME owners who have subscribed to it.

Innovative

We were the first in the UAE to recognise the opportunity that the SME sector presented.

Since then, many have jumped aboard the bandwagon, but we continue to deliver significantly different products, that have seen our continued growth from our initial early start. For us, the path to innovation has been twofold: there have been several leapfrog innovation moments where we have introduced new offerings, and there have been several incremental improvements that have led to organic innovation. We are always on the lookout for the market’s challenges, so that we can innovate and convert challenge into opportunity.

Technology advantage

Today, we continue to design our packages in such a way that they offer our customers better value for money, with transparent billing, new benefits through smart technological implementation and more. In The Business Plan, for

example, there is an interesting feature through which customers calling other customers subscribed to The Business Plan enjoy even better tariffs. Since we do not have legacy systems, we have been able to introduce many more technologically-advanced offerings for our customers. Cutting-edge technology is at our core, which allows us to offer nothing but the best to our customers.

Meeting SME organizational needs Winning Expo 2020 has been

a big boon for UAE SMEs. It has driven the economy on the whole, but especially for SMEs; this means that the needs of SMEs are growing.

At du, we have looked at all aspects of SME growth, particularly the quadrant related to mobility, data needs, connectivity, managed and cloud services. Something that we have done especially well is mapping these requirements, to develop a model that will enable our SME customers to grow with us.

Deliver what we promise

For us, delivering our promise is about commitment, and about our customer-centric approach.

The SME marketing team works on an outside-in approach, with the key measuring factor being what we deliver to our customers.

This includes many aspects, such as propositions, product development, and our go-tomarket strategy, as well as the channels through which we serve our customers, and, ultimately, the quality and service that we deliver.

Trustworthy

We have taken numerous steps to keep improving our customers’ trust in us. To build upon our trustworthiness, we initiate and

support myriad SME events, through which we have established an ecosystem wherein customers can come and network, share and gain knowledge, while learning and teaching, finding mentorship and learning from thought leaders.

Hand in hand, these events and the ecosystem have led us to have an excellent level of engagement with our customers, to help understand their needs, gather their input and feedback.

Care and excellent service for our customers

SME owners not only have to take care of their business and themselves, but they have to take care of the livelihood of their employees and families, too. We understand and respect that they do this through their own effort and money, which drives us to want to take care of them. We serve SMEs in their own office space, and try to fulfil their requirements, so that they don’t have to take time from their busy schedule to visit us. This is an aspect of our service that our customers love, and they respect us for the time we take to go to them.

Whichever way you look at it, these are good times for SMEs. The UAE is doing a tremendous job in growing its economy on all fronts, and SMEs are poised for a large growth spurt in the coming years.

At du, our team constantly strives to further improve this positive outlook for SMEs, by providing them with the propositions and services that will carry them forward, providing them with solutions that give them the ability to compete regionally and globally, and by being a key partner in their digital and marketing presence.

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Sales and Marketing

Tips for the nervous networker Phil Bedford offers valuable advice on how to get the ‘networking’ ball rolling

Act like a host not a guest

1 Prepare questions:Who, What, Where, When, Why

2 Hunting v/s Farming 72

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June-July 2014

Intelligent SME

Sales and Marketing

W

e have covered a fairly good number of stories on networking in the earlier issues. In this issue, let’s focus on helping those people who want to network but get a little nervous in taking the first steps.

The first tip is to make sure you have your “networking tools “with you.

This includes:

• Business cards- keep some on you and keep spare in the car • Calendar-to make appointments for other occasions.

A smart phone is excellent for this.

• Pen, so you make notes on the back of the card about what you have agreed • Name badge ( if you have one ) • Breath mints if you smoke or drink heavy coffee • Consider deodorant if it’s the summer in Dubai

Act like a host not a guest.

If you are a nervous networker then chances are you are not the only nervous networker attending the event.

I went to a networking event in Dubai where I was actually giving a keynote on networking.

Upon arriving at the event I found the sign in table but there was no one there to welcome me and so I drifted into the event. There were groups of people and no one really seemed to pay any attention to me.

I walked up to the bar and stood next to people and no one made any effort to speak to me. I most certainly didn’t feel welcome.

Now contrast this with other events I have attended. The sign in desk is manned by a couple of smiling faces and a warm welcome.

This is definitely a step up.

Then there are networking groups like BNI where they actually have people tasked to welcome the visitors, showing them to the refreshments and even try to connect visitors to other interesting members. Imagine how welcome I felt there on my first visit and my chances of getting some results exponentially increased.

So the message here is if you are at an event, you do not need to be officially part of the event to be a “host”. You can take it upon

An experienced business trainer, Phil Bedford brings over a decade of experience to his role as master franchisee for the Referral Institute. His expertise and experience of working with both companies and networking associations, coupled with a passion for training have helped him immensely. He regularly appears as a speaker in the UAE and abroad, educating people on how to build their business by word of mouth and “creating referrals for life.”

The more we listen to people the more we can learn about them, who they are, why they do what they do, what they do when they aren’t working, their challenges and issues at work, what they are looking for at the event.

yourself to meet people and ask them questions about them, try and help them.

Prepare questions based on 5 Ws Who, What, Where, When, Why

With these type of questions you can normally spark up a pretty good conversation.

Good networkers have 2 ears and 1 mouth and we use them proportionately. It’s a common misconception that we need to be great talkers to be good networkers.

The more we listen to people the more we can learn about them, who they are, why they do what they do, what they do when they aren’t working, their challenges and issues at work, what they are looking for at the event. Keep the questions as open-ended as possible so that the answer can’t be “yes” or “no”

All this knowledge allows us to find things we can do for them, to help them.

Hunting v Farming

Here we meet another misconception about networking.

Networking is about ‘farming’ not ‘hunting’. It’s about getting to know people, help them, build relationships. The idea of trying to close a deal with every individual you meet is doomed to fail 98% of the time. Those people who have the most results from networking (often they are trained networkers) realize this.

Those that have the least success are chasing the 2% and rarely achieving it, which is why they claim networking doesn’t work. Some people of course hit the 2% once in a blue moon and then continue to hunt for the rest of their networking lives.

They don’t realize that they are sacrificing huge results for mediocre results.

What they also do not realize is how they damage their personal brand with the other 98% which they have just annoyed. We have all been pounced on and sold to at a networking event and all we want to do is escape the other person.

So in summary look to build relationships, get to know people and to do this we often have to visit the same networking group repeatedly.

Watch this space in the coming weeks for more tips.

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Leadership

What is your net worth in leadership credits?

Michael Tolan gives away a few tips to leaders on how to build trust and respect among employees so that it encourages them to stay with the organisation, no matter what.

S

tarting a company is never simple, but keeping one going is the catch.

Entrepreneurs begin their journey with purpose and passion but soon realize there are many dynamics at work when assembling the team to execute their vision.

The blending of experiences and aspirations of others into the company cocktail can often yield a delicious mix of enthusiasm,

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euphoria and the winning formula of success.

But not always. Attracting the perfect mix of talent, devotion and passion into your organization may take more time and energy than you think.

It is not always about money, title or down-the-road profit potential. It is often dependant on the leadership interpersonal skills of the person standing at the front

of the line. You.

Turnover in companies is growing at an increasing rate with so many options and offers available at the click of a mouse.

This is why leaders today must focus on building the best ‘all star’ team within their ranks.

‘The right face in the right places’ is a very correct adage to this all important facet of building a successful team.

June-July 2014

Intelligent SME

Leadership

After all, who are you when you stand alone?

The treatment of the people you will place into your ecosystem that support your front and back end services or product offerings will have much to do with their perception of feeling at home with you and your mission and vision.

Here are a few tips on guiding you to build the trust and respect that will encourage your people to stick by you no matter what, and help you shape your determined future with a winning hand. It is all about building leadership credits.

Talking about others in front of others when they are not there.

This is a strategy that can backfire.

You might have thought that by doing this, you were sending a control message to the other people on your team, a kind of auto correct that says, I do not like Henry because he takes longer lunch breaks, therefore encouraging them not to do the same.

The ricochet effect is that the others begin to see that unless you immediately have a good talk with Henry after this announcement, that you are prone to harboring animosity, and if you can do it to Henry, what about them?

In order to build unshakable trust, consider yourself a parent.

Be transparent, open and honest about your expectations with every member on the team and review their progress with them so they in turn can auto-correct. No one wants to feel like they are lame, so give them the guidance, tools and encouragement to be all they can be for the betterment of the entire team. Then, if they are not up to scratch, you have the option of suggesting another role, or ultimately another career path for them.

Do what you say you are going to do.

Leaders today who talk, talk, talk and never seem to act, or act differently than they espouse are doomed for a cave in. Building

Michael J. Tolan is a speaker, writer and corporate mentor and board advisor to several organisations. He is the creator of Mission I’m Possible series of motivational workshops through FirePowerLeadership.com and is the Chief Inspirational Officer of the World Class Academy of Excellence (Follow him on Twitter mtolan@worldclassgroup).

trust is also about consistency.

In order to lead the pack, you will be tested everyday by your own actions, even down to the looks you might give someone behind their back when seen by any of the other members of staff.

Remember that leadership is not only responsibility, its power. You have the power to hire and fire, to applaud and discipline, so use the power you have with controlled awareness.

Imagine that every word you say, every move you make is being recorded as if being filmed in the eyes and minds of the audience you have attracted to motor your enterprise ahead of the waves.

Adopting an awareness of this can save you time and money.

Use a speakerphone with your team.

If you have ever been in a one to one conversation with someone and then suddenly experienced the need to involve a reaction or opinion of a third party, you might have realized that when they got them on the line, you never could imagine what is being said on the other side of the conversation.

Unless the speakerphone is being used.

This automatically created transparency and responsibility on all parties.

Open up the communications in your organization so that your team members are bolstered with confidence to speak their mind, to allow them to participate instead of behaving like a subservient nobody, afraid of what their boss might say.

Many entrepreneurs fear that the opinions of others are threats against their authority and their ego as a leader. Although there are legitimate occasions for battle stations and not so much

Many entrepreneurs fear that the opinions of others are threats against their authority and their ego as a leader. commentary, allowing others to feel that their opinions matter can fuel their trust and feeling of security in order to spur them to learn initiative which is the magic of ‘leadership inspiration’ today.

Being the boss looks great on a business card and in the social circles away from your office.

However, when the leadership posture you adopt is put into action by giving your team a sense of purpose, appreciation, and value, you will walk into work and away from it everyday having built something more than profits.

You will have experienced what it is like to build a strong castle where all of the inhabitants love and trust their king.

All of this will add leadership credits to your account. The stronger your leadership account, the more readily employees will feel like serving you and the organization.

Start putting more leadership credit in the bank today. It will be your ATM machine of reliability, constancy, and sustainable productivity.

Deposit first, then withdraw.

Maintain a healthy balance.

Remember, others are always banking on your good credit as their leader.

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Intelligent SME

Emirates NBD Global Business Series

Mr Aladdin Omar Al Deesi, head of acquisitions and distributions, Emirates NBD Business Banking, felicitated Mr. Mohammed Khalaf Al Habtoor in appreciation of his attendance.

Prof. Christopher Abraham, head of Dubai campus and senior vice-president, SP Jain School of Global Management, was the moderator of the first edition of the Emirates NBD Global Business Series II.

Mr Shantanu A.P., founder and CEO of SPI Group, also presented Mr Mohammed Khalaf Al Habtoor a token of appreciation.

Up-close and personal with Mohammed Khalaf Al Habtoor

[Vice-Chairman and CEO of Al Habtoor Group] 76

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Intelligent SME

Emirates NBD Global Business Series

Over 170 SME CEOs and thought leaders were present at the first edition of the Emirates NBD Global Business Series II.

Attendees listened keenly as Mohammed Khalaf Al Habtoor shared precious anecdotes about his life: from being a notorious kid to becoming the apple of his parents’ eye, his love for Polo and much more.

A strong question and answer session followed, with several persons seeking to gain Al Habtoor’s valued views and opinions on running a successful business.

Venue : Villa Romana St Tropez, Habtoor Grand Resort and Spa, Jumeirah Beach Residence.

Date: May 28, 2014 77

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June-July 2014

Intelligent SME

Column

Ignore performers at your own peril Utpal Bhattacharya on why organisations need to have robust HR practices.

I

t can be quite frustrating for top executives in large companies when internal politicking becomes more important than business itself, as individuals tend to protect their interests in the short-term. But large companies do not suffer much, as these are established in the market for a long time and they keep on getting a steady flow of revenue from one source or the other, while banks are always there to fund them in case of a gap between receivables and payables.

The problem occurs when such attitudes infect smaller companies, when a business development manager begins to outshine his boss, who increasingly gets insecure of his position. In certain cases, the boss could act negatively, in fact even refusing to take new business if he feels that his position in the company is in danger.

Recently, I had this experience with a senior executive of a midsized company, who told me that he was having issues with his boss, whom he suspected to be acting against his interest despite his strong performance. He told me that his boss had refused to accept new business that he was bringing in and, in that way, forcing him to not meet his target. When I asked him why he was not approaching the senior management of the company to discuss the matter, he said that the company was conservative and closed in its approach. That he had no access to the higher management on these matters. He had to go through his boss, who had all the powers over him. I was stumped by this disclosure, as the company never looked unfriendly to its employees from the outside.

One of the other things, this senior manager revealed to me,

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Summing up It is important for organisations to constantly monitor their human resources, across all industries because the greatest asset in any enterprise is the quality of its employees, which translates to the quality of products and services. was that he has been diverting some of the orders that he was getting to competition for a commission. He was doing this without revealing his identity and using a friend’s company. In fact, he asked me if I would be interested in getting into a similar arrangement with him, to which I declined.

But this has also got me thinking about how lack of robust HR practices and processes, including transparency, in organisations can take a toll on their top lines. Without proper HR practices, for example, companies are bound to have a higher attrition rate, with the best performers first to leave and the laggards stay on as liability.

Without proper HR practices, identifying the right candidate for the right job and incentive is left to the whims of team leaders or section heads, who could have lots of lacking, and by the time the top management realised their mistake, the organisation would have suffered.

It is important for organisations to constantly monitor their human resources, across all industries because the greatest asset in any enterprise is the quality of its employees, which translates to the quality of products and services.

Protecting and nurturing their human assets is so important that with robust systems it is not difficult for organisations to identify even future entrepreneurs, who if left to leave could build up a bigger company and competition. So, why not use their full potentials, promoting and incentivising them, so that they never leave the organisation.

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