The New Normal by SundayTimesZA

THE NEW

NORMAL WWW.BUSINESSMEDIAMAGS.CO.ZA

JUNE 2021

BUSINESS UNUSUAL

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EDI T ORI A L COMMEN TA RY

THE NEW

NORMAL

It's not just business as usual

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OVID-19 has turned the world upside down and has caused devastation. Every aspect of our lives has changed. In this issue of The New Normal we talk to CEOs and business specialists, who tell us that COVID-19 has spurred on the adoption of 4IR technology across all industries, highlighted the need for more customer-centric business models, and reiterated why succession planning and future-proofing businesses across investment risks; leadership; staff; and customer retention, are key.

PIcasso Headline, a proud division of Arena Holdings, Hill on Empire, 16 Empire Road (cnr Hillside Road), Parktown, Johannesburg, 2193 PO Box 12500, Mill Street, Cape Town, 8010

www.businessmediamags.co.za EDITORIAL Content Manager: Raina Julies rainaj@picasso.co.za Contributors: Delia du Toit, Ryland Fisher, James Francis, Rodney Weidemann Copy Editor: Nia Magoulianiti-McGregor Content Co-ordinator: Vanessa Payne Digital Editor: Stacey Visser vissers@businessmediamags.co.za DESIGN Head of Design: Jayne Macé-Ferguson Senior Design: Mfundo Archie Ndzo Advert Designer: Bulelwa Sotashe Cover Images: istock.com, supplied

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SALES Project Manager: Gavin Payne GavinP@picasso.co.za +27 21 469 2477 I +27 74 031 9774 Sales: Brian McKelvie PRODUCTION Production Editor: Shamiela Brenner Advertising Co-ordinator: Johan Labuschagne Subscriptions and Distribution: Fatima Dramat fatimad@picasso.co.za Printing: Novus Print MANAGEMENT Management Accountant: Deidre Musha Business Manager: Lodewyk van der Walt General Manager, Magazines: Jocelyne Bayer

LEADERSHIP The COVID-19 pandemic has impacted on the economy in a huge way, but there are some lessons that businesses have learned that will benefit them beyond the pandemic.

FUTURE-PROOFING THE BUSINESS Why business strategy needs to be emergent and evolving continuously; and what does the office of the future look like?

THE CUSTOMER The pandemic catalysed emerging customer communication trends into broad acceptance; How COVID-19 has changed customer spending habits.

COPYRIGHT: No portion of this magazine may be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material. The New Normal is published by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline. All advertisements/advertorials have been paid for and therefore do not carry any endorsement by the publisher.

THE DIGITAL ECONOMY The growth of e-commerce; Why digitally-enabled platform business models are the future.

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MAKING THE HOME OFFICE COMFORTABLE IsoBoard’s technical marketing manager Mark Russell writes that his new home office, converted from a single garage, has become a thermally-controlled haven

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he home office – and right there, we sense the contradiction in the name … home and office … almost an absurdity, an oxymoron. I am sure many of us never thought that they would one day be the same thing. The commute between the two was part of our lives, a time for planning and catching up with the world on the journey to the office, and anticipation of family and home comforts on the return trip. One was a destination for earning, the other a refuge. And then… I wonder at how we have coped and adjusted, transitioning to the more selfsufficient role, the available technology such a boon in enabling remote collaboration, remaining in contact, while simultaneously avoiding physical interaction as much as possible. Many homes were not designed to accommodate the needs of people having to work, study and create, as well as rest, replenish and recreate. And most of us need to separate the two. Some people can work effectively at the dining room table, while the organised chaos

of family life flows around them, but not me. I need a place to go, to don my work persona, and be in command, the master of all I survey. Listening to our customers over the past year, it is clear that many needed to create office space at home, be that through converting a garage, a spare room, a garden shed or a 20-foot container. In my case, it was the garage: a single garage built on years ago as an afterthought, which would finally come into its own, rather than be a store for the neglected and unloved accumulated detritus of life. (Though, while tidying up inside, I did find a coffee percolator, one of those gifts that never had a place until the home office, thank you whatshizname, such prescience!)

INSULATE FOR COMFORT AND TEMPERATURE CONTROL The thing about garages and, I daresay, sheds and spare 20-foot containers, is that they were never designed to accommodate humans during office hours. During our summers, roofs can reach 70 degrees Celsius and this heat will flow into the roof void. Humans have physiological needs, one of which is moderate

IsoBoard thermal insulation retrofitted between the trusses as ceiling.

temperatures. Thermal comfort for us is generally between 20 and 27 degrees Celsius, the temperature range where most of us feel neither too hot nor too cold and can manage our comfort by dressing appropriately or opening windows sufficiently to allow a gentle crossflow breeze. My garage had a monopitch steel-sheeted roof with a tatty ceiling and no insulation. Removing the ceiling exposed beautiful timber beams, which required little effort to turn into a feature of the new ceiling. We used three types of insulation in this instance: • Aluminium foil directly under the roof sheets to contain condensation and dust. • A thermal blanket to act as acoustic insulation. • IsoBoard “Isopine” between beams to do the thermal insulation heavy lifting, and aesthetically complement the timber beams. Of course, the foil and blanket contribute thermally as well. Having been working here through the past summer and winter, I can tell you this is a happy solution, ticking all the boxes. IsoBoard can offer aesthetic variety – plain bevelled edge boards, 100mm and 200mm centre-grooved Isopine surface profiles, paintable with water-based paints and wood stains. My home office/guest suite is easily the most thermally comfortable room in the house. For more information: www.isoboard.com

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Netcare digitisation initiatives – Making an indelible impact on the healthcare landscape in SA.

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In a world that has to adapt continuously and speedily to the impact of unexpected global events such as the COVID-19 pandemic, the healthcare sector, including Netcare, is similarly faced with new challenges, expectations and opportunities. Netcare is embracing this evolving ‘normal’, bolstered by our proven ability to be nimble and to implement new technological advances and learnings, continually. Our strategy in this regard builds on the three global healthcare megatrends of customer centricity, digitisation and data analytics and utilisation. In an environment where digital enablement and rich data availability, insights and utilisation can be leveraged to drive improvements in healthcare, Netcare has partnered with five global technology giants to enable Netcare to deliver on our strategy: • SAP – for finance, administration, billing, procurement and materials management • Deutsche Telekom (Clinical Solutions) – for electronic patient medical records • Apple – the iOS mobile operating platform for fully mobile access to patient data • Capsule Technologies – for digital integration of all medical equipment and devices • IBM Watson Health – drug interaction, dosage and safety information management through Micromedex. In a first in South Africa, the electronic medication prescription implemented by Netcare in conjunction with Micromedex, was approved by the South African Pharmacy Council in 2020, and established the new industry standard for e-scripting. All prescriptions are checked for any interactions between medication, duplicate medication and medication allergies

a patient may have. The mobile system using an iPad incorporates voice-to-text note dictation and handwriting recognition, with all orders and investigations requested electronically through computerised physician order entry. All results are also automatically and electronically returned to CareOn to allow seamless integration between all healthcare workers. Adopting and integrating these global cutting-edge technologies are, in fact, putting Netcare at the forefront of providing person centred health and care, which will have an indelible impact on the future healthcare landscape in South Africa. Unified and fully integrated health and care continuum throughout Netcare’s unique ecosystem Netcare’s unique ecosystem – encompassing primary healthcare, pre-hospital emergency medical services, acute hospital care including cancer care as well as acute chronic renal dialysis services, mental healthcare, physical rehabilitation and occupational health services – facilitates the development of fully integrated service offerings centred around each person we serve. Leveraging off digital technology and Netcare’s comprehensive data assets offers immense opportunities to integrate our range of services to patients most efficiently, and to optimise clinical patient outcomes within strict parameters of information security and patient confidentiality. The Group’s cloud-based data analytics platform harnesses the full potential of machine learning, AI, predictive analytics and the Internet of Things to unify data in real time from various data sources.

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Netcare’s CareOn – a first for healthcare in Africa In a first for healthcare in Africa, Netcare is in the process of implementing a world-class, integrated and fully mobile patient care system – CareOn. This is by far the most positive development disrupting the way healthcare is delivered in South Africa and on the continent. The CareOn solution includes full digital integration of medical equipment in wards and theatres, pathology laboratories, radiology units and the blood banks, with information such as patient observations feeding directly into, and being stored on, the mobile platform in real time. The introduction of electronic medical records (EMRs) across all of Netcare’s service platforms is the backbone of our approach to person centred health and care. EMRs will enable doctors to remotely access patient charts and test results, improve collaboration across disciplines and operations, and enable quicker and more informed decision-making to optimise treatment. By integrating patient data digitally across the Netcare ecosystem, healthcare practitioners will have a comprehensive, holistic view of their patients’ history and context on the mobile platform, whether they are on-site at any Netcare facility or accessing the information remotely, for example from home. This will enable a seamless interface between healthcare practitioners across the organisation, and eliminate the fragmentation of healthcare services. It will drive greater coordination of care, shifting from the current episodic, fragmented care to lifelong lifecycle care. It will also eliminate duplication of diagnostic procedures due to records such as laboratory tests and radiology examinations being available on the CareOn platform, and facilitate greater patient participation in their own health and care, as they too will in time have electronic access to their medical records. Mobile access to clinical data will empower and guide clinicians in the delivery of the most effective and appropriate care. By utilising machine learning and AI, and enhancing our data analytics capabilities, treatment protocols to improve outcomes can be better informed. At the pinnacle of Netcare’s digitisation journey is a customer engagement platform (CEP), which will revolutionise how we engage with our patients. The CEP will unite all patient data across the Group to provide a view of our patients, enabling delivery of a personalised patient experience. Patients will ‘own’ their healthcare data and have seamless access to their Netcare electronic health record through multiple digital channels.

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Optimising operational efficiencies during the COVID-19 pandemic The relevance of Netcare’s digitisation strategy was confirmed during the COVID-19 pandemic, with the Group’s digital and data capabilities enabling the optimisation of operational and other key aspects. Netcare’s network of digital operating systems enables oxygen management and zonal bed allocation in real time across the Group, with an updated bed availability report automatically distributed every hour; a predictive model for critical care beds; an outbreak and exposure platform; an occupational health and safety platform; a predictive model for, and daily analysis of, PPE demand for the various facilities within each; and a scenario analysis tool tracking the potential impact of COVID-19. Other digital platforms that enhance efficiencies and the safety of healthcare workers, patients and visitors to Netcare facilities include: • mobile screening for entering our facilities; • a digital surveillance screening tool to monitor patients with chronic illnesses such as renal disease requiring dialysis and cancer patients in between treatments; • a digital track and trace application to engage with COVID-19 positive staff in self-isolation; and • Netcare VirtualCare, a unique platform offering secure video or telephone consultation options to patients. This platform achieved second place in the corporate category of the 2020 BCX Digital Innovation Awards. Other key elements of the digital patient journey Netcare’s digitisation journey also includes a number of initiatives which are enhancing operational efficiencies and patient experience. These include, amongst others: • Automated SMS geolocation through Netcare 911’s ‘Locate Me’ service, which auto-populates a caller’s location, thereby reducing call handling and paramedic response times. • Virtually linking emergency medical practitioners attending to critically ill or injured patients on scene to engage face-to-face with receiving specialists for clinical advice on treatment through Netcare VirtualCare platform, has brought a new dimension to the clinical decisionmaking in the emergency context. • Medical appointments made for individuals with over 4 000 specialists, GPs and dentists across the Netcare ecosystem – free and customised to suit each individual’s specific needs, through Netcare appointmedTM. Ongoing evolution By continuing to harness digital technology and big data to reengineer and enhance service delivery, Netcare is spearheading innovative, world-class healthcare in South Africa. Healthcare workers remain key to our service delivery and as uptake of our digital solutions grows, the need for new skills will require increased investment in our people and attracting new talent to ensure a future fit workforce. Throughout, Netcare’s purpose and our values will remain our compass in volatile and uncertain times, with care being the strongest protector of the sanctity of life.

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Resilient Leadership The COVID-19 pandemic has greatly impacted the economy, but businesses have learnt some important lessons that will benefit them beyond the pandemic. Ryland Fisher investigates

Shameel Joosub Shameel Joosub, Vodacom Group CEO, says that partnerships were important in dealing with the lockdown from a commercial and social perspective. “The Vodacom Group stepped up immediately to accelerate the delivery of our social contract with various stakeholders in the markets where we operate through strategic partnerships with the likes of Discovery Health and Microsoft. Initiatives included free devices and airtime for healthcare workers, accelerating support to governments via donations of handsets, connectivity and medical equipment, and making contactless payments more accessible through zero-rated services and an expanded M-Pesa ecosystem to address social distancing challenges. “During the hard lockdown in 2020, some retail outlets were initially closed which meant that our customers were unable to repair their phones or take out new contracts, upgrade or do sim swops. From a network perspective, there was an extraordinary increase in data network traffic at the start of the national state of disaster lockdown of around 250 per cent for fixed and 40 per cent for mobile.”

Shameel Joosub

Joosub says Vodacom recently delivered a “pleasing set of annual financial results in difficult circumstances”. “We are acutely aware of the financial and personal pressures that individuals and businesses across our markets are currently facing, as global uncertainty continues in the midst of the pandemic.” He says the company conducts regular surveys among staff to gauge how their employees are doing. “This also helps us to better understand how we can best support them to remain safe and productive during this time, whether they are working from home or the office.” Vodacom’s “commitment to delivering on our purpose and social contract played a critical role in informing our response” to the pandemic. “The primary objectives of our COVID-19 crisis response was to help curb the spread of the virus and then assist with the economic recovery across our footprint through a six-point plan. This included to expand and future-proof our network infrastructure, accelerate support to governments - especially in eHealth and eEducation - enhance digital accessibility and literacy for the most vulnerable, promote widespread digital adoption for business, help countries exit lockdown through targeted digital adoption and enable cashless payments and financial services through M-Pesa.” Joosub adds that the safety of Vodacom’s staff and customers was their number one priority when the lockdown began. “We immediately implemented a work from home policy for all of our staff, which largely remains in place today as we take a hybrid approach to returning to the workplace according to government directives.

“The coronavirus has, as we all know, affected everything - economies, working patterns, travel and retail, socialising and entertainment. Among the many things that the pandemic has taught us is that collaboration and partnerships are crucial to help address problems and challenges as effectively as possible.” Ndivhuho Norman Munzhelele

Ndivhuho Norman Munzhelele Ndivhuho Norman Munzhelele, eNCA MD, says that interest in news “increased significantly” during lockdown. “This meant that as a news channel we had to be more agile and focused. “We have a strong, adaptable team who deliver quality content and that helped us achieve our business objectives. In the past year, we were innovative in terms of what we offered our audience and this sustained us commercially.” Munzhelele says that eNCA, like many other organisations, lost staff members due to the pandemic. “This has been a challenge for all of us. Our management team prioritises staff support and their well-being remains of paramount importance.

“Among the many things that the pandemic has taught us is that collaboration and partnerships are crucial to help address problems and challenges as effectively as possible.” – Shameel Joosub 6

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L E A DERSHIP

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“Working from home comes with its challenges but with amended workflows, ongoing communication and the commitment of our team we were able to get through the hard lockdown.” – Ndivhuho Norman Munzhelele “We implemented a number of changes in the work structure and management teams to ensure that staff remain focused and continued doing what they love to do. The quality of our content and the innovative use of our digital platforms, provided clients with fresh ways in which to reach a valuable target market.” Asked how they kept their staff motivated during lockdown, he says: “Our management team leads by example and we worked closely with our teams during lockdown. We were transparent in how we managed the pandemic and constant communication enabled us to act speedily on staff concerns.” Still, it wasn’t easy to work from home, says Munzhelele, “and for the most part, news services cannot fully work from home”. “Working from home comes with its challenges but with amended workflows, ongoing communication and the commitment of our team we were able to get through the hard lockdown.” As to how they kept staff productive during lockdown, he says: “Our team members are encouraged to own their portfolios and continued to perform at their peak while taking responsibility for their output. With the great support structures that are in place, it wasn’t hard for the team to remain productive.” Munzhelele says that the media industry is ever changing. “Prior to COVID-19, smaller media players were able to flourish but in the past year we saw a significant contraction in this space. We also witnessed the acceleration of the decline of print media. We are traversing unchartered waters and it’s difficult to predict where we may be post COVID-19. At this stage, we have to constantly review and reset to meet the challenges of the pandemic.

Tsakani Maluleke

Ultimately it’s the agility and adaptability of our teams and continued support of our clients that will determine our sustainability in the long term.” Journalism is continuously evolving and the dissemination of accurate information has become a necessity now, more than ever before, he says. “Through digital media we have seen a massive proliferation of fake news. Viewers should seek credible platforms as their source of news and we make a concerted effort to be that credible news source. As an industry it has become clear that we need to build and support one another so that media and especially the news industry grows from strength to strength.”

Tsakani Maluleke Tsakani Maluleke, AG, became attorney general in December 2020, two weeks after her predecessor, Kimi Makwetu, passed away just short of completing his seven-year term. Maluleke says that the biggest challenge she’s faced since taking over has been “the challenges that every leader of any institution is facing today - the high level of uncertainty”. “You have the pressures of managing in an environment that’s characterized by huge uncertainties. You have the virus, and the fears around that, you have the economic pressures, and the fiscal pressures in terms of government who is our client. “Just trying to manage through that has been quite a task. “The biggest challenge has been about maintaining the cohesion of the team and making sure we stay focused on the work that we have to do, in the midst of all this uncertainty and not get rattled by things happening around us. “That’s the thing that’s taken up a lot of my energy over the past few months.” One of the first things that the office of the AG had to do immediately after her appointment was to complete the Special Report on the Expenditures of COVID-19. ‘It was an innovation that we had done over the course of 2020, from about April 2020, in the middle of lockdown. We conducted real time audits, something we had never done before, and audited on a three-monthly basis the transactions as they were happening.

“Kimi Makwetu launched the first instalment of the report in September 2020, and the intention was that he would launch the second instalment in the last week or two of his time here. Then he passed on 11 November. We wrapped up the report, and launched it on 9 December. “But we also had to deal with the Public Finance Management Act. Our audit cycles were pushed out because of lockdown last year, and trying to audit while keeping people safe and well. “It’s been a big challenge, but we have had the benefit of continuity, which made it easier for us to deal with the challenges of last year. I knew the pressure points and it was just a case of getting through them.”

THE FALLOUT OF COVID-19 ON BUSINESSES The total number of liquidations in South Africa increased by 8.5 per cent in February 2021 compared with February 2020. Liquidations of companies increased by 10 cases and liquidations of close corporations increased by four cases during this period. The estimated number of insolvencies decreased by 6.7 per cent in the three months ended January 2021 compared with the three months ended January 2020. There was a year-on-year decrease of 40.2 per cent in January 2021. Seasonally adjusted insolvencies decreased by 40 per cent in January 2021 compared with December 2020. This followed month-on-month changes of 10 per cent in December 2020 and 67.4 per cent in November 2020. Source: Statistics South Africa has published its February 2021 report on liquidations and insolvencies

NOT BUSINESS AS USUAL The BeyondCovid Business Survey, conducted by management consultancy Redflank, between July 2020 and March 2021, surveying nearly 4 500 companies, found that while 44 per cent of big corporates indicated that they have returned to “business as usual” this year, the comparative number for SMMEs was a 15 per cent drop.

“The biggest challenge has just been about maintaining the cohesion of the team and making sure we stay focused on the work that we have to do in the midst of all the uncertainty.” – Tsakani Maluleke THE NEW NORMAL

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AUTOMATIC TAGS JUST MAKE SENSE Automatic tags enable convenient toll payments and save time on the road

Getting and registering for a tag is easy and can be done at any TRAC mainline plaza or SANRAL customer service outlet. It costs R50, which gets credited to the tag on registration. There are numerous benefits to having an automatic tag – for private motorists and fleet owners and drivers. Most motorists know, all too well, the hassle of scrambling for change or a credit card when pulling up to a busy toll plaza. Or worse, that irate and anxious feeling while sitting in toll traffic when you’re already late for a meeting or tired from a long drive. Having a registered automatic tag eliminates this and other niggly issues associated with traditional toll-paying methods.

For the private motorist, an automatic tag will not only save you time on the road, but can also help with fuel economy as it means less stopping. Tags are also the ideal option for fleet owners with multiple vehicles as they allow fleet drivers to use the express and tag-only lanes, saving valuable time. And we all know that in business, time is money. In addition, fleets making use of tags will enjoy the following benefits: • No more worrying about change or credit card losses. • Easier management of each driver’s journey and spend. • Reduction in fuel costs and emissions as the automatic tag eliminates the need for drivers to deal with toll-booth traffic. • Reduced wear and tear on vehicles.

WHERE TO GET YOUR TAGS Automatic tags are available and accepted at all TRAC mainline plazas and can also be used at our four ramp plazas: • Diamond Hill Mainline Plaza • Middelburg Mainline Plaza • Machado Mainline Plaza • Nkomazi Mainline Plaza • Donkerhoek Ramp • Cullinan Ramp • Valtaki Ramp • Ekandustria Ramp Currently, all TRAC mainline plazas have dedicated tag lanes, with Diamond Hill Plaza also boasting an express lane which allows, tagholders to pay their toll fees without slowing down completely.

The express lanes have proven so successful that they will be rolled out to all other TRAC South African mainline plazas soon. Getting and registering for a tag is easy and can be done at any TRAC mainline plaza or SANRAL customer service outlet. It costs R50, which gets credited to the tag on registration. Registration is effortless and immediate – all that is needed is an ID or driver’s licence as well as FICA and vehicle documents. Road users should note that although TRAC’s two Mozambican plazas also accept electronic tag payments, the Mozambican and South African systems are not linked, and neither country’s tags will work in the other. For more information:

0800 87 2264 helpdesk@tracn4.co.za. www.tracn4.co.za

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RAC is committed to safety, convenience and reliability along the Maputo Corridor and is pleased to announce that automatic tags are fast becoming the preferred payment method along the N4 Toll Route. The automatic tag system was implemented on the South African section of the route (between the Solomon Mahlangu offramp and the Lebombo Border Post in Komatipoort) in 2017 and has been well received by N4 commuters. The system allows registered SANRAL tagholders to make use of this quick and convenient toll payment method without the need for any form of human contact and stopping.

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SUS TA IN A BL E BUSINES SES

he past 18 months have forced companies to rediscover their focus as they worked to survive and recover. Concepts such as resiliency leapt to the fore, begging the question: how can a company future-proof itself? The short answer: Don’t consider it a destination but as a continual culture, says Paul Barker, senior manager and OKR coach at Step Advisory. “The concept of future-proof is an illusion. The pandemic has shown that companies should be You can say you are future-proofing, but in a year’s time, are you still future-proof? Are you more resilient. But how, asks James Francis ready for what the future holds, because what you predicted a year ago now looks totally different? You’re never going to reach that point. It’s a OKR (Objectives and Key Results), a habits is key – ensuring that you pause, Paul mirage. Your strategy needs collaborative, goal-setting approach refocus and reflect at regular intervals.” Barker to be emergent and evolving to strategy. Strategy, Barker explains, A company’s culture and leadership makeup continuously. Strategy is “is much more of a direction. You is as important, notes Young: “Future-proofing important and needs to know where you want to go, and you is really based on the founding team - the first be considered. But if that set up a direction and move towards 10 people that they’ve employed around them. strategy doesn’t evolve, it’s it. And you need to have pit stops That sets the culture of any business. And going to be nullified within a on the way to see if you’re moving in if those guys have an agile growth mindset, matter of months.” the right direction. That’s where the they’re almost future-proofed for whatever Indeed, there is a more implementation of healthy business disaster comes, or exponential growth.” appropriate phrase for future-proofing, says Thinkroom Consulting’s founder, Catherine Young, “We’ve been Paul Barker working with future-proofing all along, but we call it a growth mindset. It’s that, ‘I can change if I need to’ attitude. Those who have The ‘hybrid office’ is defined as the an agile, flexible, and continuously learning ideal compromise between remote mindset future-proof their businesses for the working and being office-bound. ups and downs.” Until recently, future-proofing was associated closely with adopting digital technology. But those days are gone. Barker points out that practically everyone had to What does striking a leap forward into digital, morphing it from balance between working differentiator into the new baseline. “Suddenly, within a matter of weeks, everyone was online. from home and returning to That technology shift has fast forwarded. What the workplace look like? some predicted would happen over the next 10 years happened in six months. Companies have been forced into adopting technology irsty Schoombie, Paragon This, she says, can easily be done by and digital tools.” Interface senior associate, says reducing the number of work stations All things digital now being that striking a balance between and placing them further apart, while also equal, future-proofing relies the at-home office and a physical increasing the number of couches for social heavily on the execution workplace is likely to create seating, for example. of strategy. Step Advisory the “hybrid office” – the compromise Added to that, Schoombie says we’ll is a big proponent of between remote working and being also see: office-bound. This “new normal” • Wider corridors and doorways and provides the opportunity to reimagine additional partitioning the office of the future. “With social • Ofﬁce furniture is likely to evolve in distancing, sanitising and mask-wearing terms of fabrics and advances such likely to be with us for the foreseeable as foldaway desks. Also, no-touch doors Catherine Young future, it’s important • Increased use of stairs to reduce for workspace crowding in elevators planning to take • The use of materials such as silver this into account,” and copper in surface finishes due to says Schoombie. their antimicrobial properties.

Future-proofing

your business

“You can say you are future-proofing, but in a year’s time, are you still future-proof?” –

Office of the future

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Kirsty Schoombie

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T HE CONSUMER

Reaching today’s customer The pandemic catalysed emerging communication trends into broad acceptance, writes James Francis

hile it’s tempting to think that customer communications changed suddenly in response to the pandemic, COVID-19 was more of an accelerator than a pivot point. Kevin Welman, director of ByDesign Communications, says if you look closely, other forces were already shaping how business reached customers. “If you take a step back, a few additional things happened in the world of communication in this ‘new normal’. The US election had a massive impact on communication as a whole, particularly the polarisation of the media. I think everyone has become sceptical and

views the media as having agendas. Then there was fake news and a general distrust in leaders. So you’ve got this almost perfect storm and a great lack of trust among consumers,” he says. Welman cites a recent study by global communications firm Edelman that surveyed more than 33 000 people in 28 countries: 54 per cent of US respondents trust businesses more than NGOs, governments or the media. Business brands have been gravitating into that vacuum, adds Sylvia Schutte, Stratitude’s managing director. “There is more of a focus on putting content out around brands. Brands have become a lot more verbal and are no longer only about selling products and services anymore. The pandemic absolutely accelerated that, but it already was happening.” Yet, the trend is not solely due to adverse changes among other communication sources. Digital plays an enormous enabling role for brands to be their own publishers and reach audiences more directly. “We do quite a lot more than just your standard digital and direct marketing campaigns,” says Stratitude’s digital account director, Nic Baker. “We’ve put

together intelligent trigger-based lifecycle communication campaigns and those have really come to the fore, so that you can deliver real-time communication to a group based on their interaction with your online platforms.” Research provided by Schutte shows a significant shift towards digital spending by marketers in the UK, a trend reflected in the local market as well, “to the degree where many agencies have repositioned themselves from full service agencies to digital agencies,” she says. Welman notes a greater emphasis on internal and operational communications during the early days of the pandemic. Though brands have started focusing externally again, the habit appears to be sticking - communicating properly with employees is as key as reaching today’s customer. Digital channels have risen to the occasion as well. “There’s been a massive uptake in digital communications. There’s been a huge movement towards the professionalisation of content and authenticity of content on platforms such as LinkedIn.”

“Brands have become a lot more verbal and no longer only about selling products and services anymore.” – Sylvia Schutte

Sylvia Schutte

COVID-19 and consumer spending habits The economic consequences of COVID-19 are continuing to be felt in the form of changed shopping patterns and lifestyles, but also faster innovation and technology adoption, writes Ashleigh Blair, Bernadette Versfeld and Kelvin Madembo from Webber Wentzel

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enerally, our spending has shifted from discretionary items to essential items, particularly groceries and household goods. Mitch Slape, CEO of Massmart Holdings Limited, indicated in a recent Deloitte webinar that varying behaviour patterns have been observed across customer segments categorised according to the Living Standards Measure (LSM). High LSM households have generally not borne the brunt of income reduction and are more cash-flush because they have reduced their spending on travel, eating out and work wear. The trend of “nesting” has also been observed, driving spending on DIY, home

office and home exercise equipment, and home entertainment (notably, Makro sold more televisions in 2020 than in any prior year). Low LSM households, meanwhile, have felt increased price pressure, and are dependent on pay- and government aid cycles. COVID-19 has also come with immense innovation, and, as a consequence, an increase in the development of intellectual property and the rapid adoption of technology. The consumer sector has observed both existing technology being embraced (such as the adoption of “off the shelf” mobile applications for online orders) and the development of bespoke technology

(for example, online ordering and order tracking). There has also been increased collaboration among retailers, technology companies and logistics businesses, using this technology not only in their own businesses, but also to generate new revenue streams by commercialising the technology under license.

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INVESTING IN A FLEXI-SPACE FRANCHISE IWG South Africa offers an unparalleled franchising opportunity for creating the office spaces of the future

he flexible workspace sector has changed significantly and following many years of exponential growth, global demand for temporary offices, meeting rooms and co-working will take over. This has accelerated a new opportunity for investment as flexible office franchise ventures prove to be sustainable, regardless of the economic conditions.

THE EVOLUTION OF THE OFFICE With the extreme success that remote working saw last year, one question is constantly asked: “What does the future of the office look like?” The effects of the COVID-19 pandemic have shown that the socioeconomic environment is becoming increasingly unpredictable. This has ripple effects on businesses globally and has led to many companies developing contingency plans that involve significant changes, such as migrating head offices or adjusting to remote working. Our new way of working may seem like a dream come true for a workforce that has been intrigued by the idea of flexibility and work-life balance for some years now. Remote working may solve the issues of long commutes and wasting valuable time stuck in traffic. But with little social interaction, unstable internet connection and an endless list of

distractions, there are also disadvantages to this model. Alan van der Westhuizen, head of Partnership Growth at IWG South Africa, says: “Recent circumstances have not only forced people to work remotely, but have also been a catalyst for many companies to review or consider a remote working strategy. While working from home has its advantages, the challenge is creating an environment that is client-facing and professional with stable internet connection and power supply.” What is the best way to bottle this coronavirus-forged culture and prevent a backslide to hierarchical, risk-averse, siloed ways of working? Looking to the future, flexible working solutions like Spaces and Regus (part of IWG) may well have found the sweet spot between the advantages and disadvantages of working remotely. These spaces meet the requirements of individuals and large corporates who are looking for a hybrid model of working and to cut added costs, while also providing world-class infrastructure and convenience.

THE FUTURE IS FLEXIBLE Flexibility and agility are important as businesses will pivot and modify processes as

INVESTING, RUNNING AND OWNING A FRANCHISE IWG is seeking franchise partners to help drive its global growth strategy, which was rolled out in 2019. Despite the pandemic, there has been impressive growth in recent months, with new franchises worldwide. Before COVID-19 hit, IWG had spread its franchise programme into Africa to meet rocketing demand for flexible, modern office space and access to services across the continent. Entering the market now, as an early adoption franchise partner, will enable a shift from traditional industries and generate strong returns on investment from the start. “Flexible office space franchises are giving rise to a new set of variables that make their model recession-resistant and able to withstand economic downturns,” says Van der Westhuizen. “The ideal franchise partners are multi-unit business owners with the skills and financial capability to develop their locations across South Africa.” Franchising offers people the opportunity to be in business for themselves, but not by themselves. The franchisee owns his/her own business, but the franchisor remains in the picture, providing ongoing training, strategic direction and field support. The franchisor – IWG – has developed a proven business formula resulting from 30 years of experience with its global brands, such as Regus and Spaces, and can grow the brand further by approving new franchise partners (franchisees). For more information: franchise.iwgplc.com

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Spaces Waterfall offers various flexible working options.

they operate. While flexible workplaces include the essential elements of traditional offices, they are forward-thinking and focused on creating dynamic environments. “Hybrid working is becoming the new norm and, in our view, it is here to stay,” says Joanne Bushell, MD for IWG South Africa. Regus-commissioned research by Development Economics shows that by 2030, flexible working will have created 30 million additional jobs across 16 of the world’s leading economies. By 2022, the global mobile workplace will number 1.87 billion people. She adds: “Hybrid working has been touted as the ideal solution for employees who still want the option to work from home, but miss the camaraderie and collaboration that the office holds.”

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echnology and innovation through mobile devices, cloud computing and social networking allows people the freedom to work from anywhere at any time. The flexible working segment is an asset class that has shown great potential over the last few years, attracting growing interest from both large occupiers and small and mid-sized firms. In South Africa, “space as a service” is a rapidly developing business sector that’s gaining traction in the country’s prime business hubs and now in the suburbs, thanks to the cost advantages and flexibility offered by varied working spaces. While the flexible office as a franchise segment in South Africa is still in its budding stage, the COVID-19 crisis has alerted institutional investors to the potential of this franchise opportunity as a synergistic extension of their existing portfolio, or even as a safe bet for their next venture.

HUGE DEMAND FOR SHARED OFFICE SPACE The pandemic has already forced many flexible office space providers to evolve. At the same time, investors are watching the emerging trends in the office space industry, which appears to be making a shift from ‘work-from-home’ to ‘work-from-anywhere’. Companies are looking to adopt a capexlight, low-risk model in the wake of the pandemic,” says Alan van der Westhuizen, head of Partnership Growth South Africa at IWG Plc. (Regus and Spaces in South Africa). For franchise professionals looking to strengthen their business portfolio, flexible workspaces, unlike gyms, hotels and many food franchises, were able to stay open to

Spaces Waterfall provides co-working spaces with all the necessary amenities.

FLEXIBLE WORKSPACE FRANCHISE The way people work is changing and companies have discovered that flexible working is a great solution customers during the pandemic. There is huge unmet demand for new centres in suburbs and secondary cities around the country, with few nationwide brands in competition. The shift to hybrid working is driving solid growth in sales from office workers who want to continue working closer to home in smaller towns and cities, so now is a great time to explore flexible office space within a diversified franchise portfolio. The pandemic has accelerated the trend shift to hybrid working, which, before the crisis, was already set to pump at least R232-billion into local economies over the next 10 years, according to IWG’s Suburban Economic Survey. “What we are seeing is increased demand from businesses that have learned

from the events of the past year and a half. They want to continue working flexibly because they know that it maximises staff productivity and reduces overheads. This demand to work in a new way is defi ned by a combination of working locations. For many businesses, this still means a central city offi ce, but also a space to work from home, along with fl exible workspaces that are somewhere in between the two,” adds Van der Westhuizen.

OPPORTUNITY TO BENEFIT FROM GOOD RETURN ON INVESTMENT The IWG franchise model presents investors with an opportunity to diversify from traditional franchise industries and benefit from significant returns on investment. Landlords, multifranchise operators, real estate investment trusts (REITs), business investors and high-net-worth individuals can enter this exciting industry in partnership with Regus, the world’s largest provider of flexible workspace and part of IWG plc. If you’re looking for an investment in an industry with high demand, look no further than the flexible workspace industry. This segment is poised for continued expansion and there is ample opportunity for franchisees to stake their claim and succeed. Are you interested in joining one of the fastest-growing fl exible workspace franchises? Contact us today to learn more about franchise opportunities: For more information:

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franchise.iwgplc.com

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SHEQ TRAINING IN TURBULENT TIMES BBF SHEQ Services is providing virtual training to enable businesses and individuals to continue their schooling in SHEQ disciplines from home

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t’s a little more than a year since COVID-19 was declared a global pandemic and the first infections were confirmed in South Africa. This period has had tragic consequences with both the loss of lives and livelihoods. On the business front, the disruptions to local and global operations have been immense. Joep Joubert, group manager of BBF SHEQ Services – a specialist Safety, Health, Environment and Quality (SHEQ) training provider – explains the challenges faced. “Firstly the health and safety environment in any organisation is not something that can be ignored. Regulatory requirements, as laid out by the Occupational Health and Safety (OHS) Act and COVID-19 guidelines, dictate the measures companies need to take to ensure they have adequate resources and processes in place to protect their employees and anyone visiting their premises. “As a SHEQ training provider, we have long offered the options of training via classroom-based, customised on-site or distance learning. As we approached the initial lockdown in March 2020, we recognised the need for people to use this downtime as productively as possible and we were able to repurpose a number of our courses onto virtual platforms. This enabled businesses and individuals to continue training from home in the various SHEQ disciplines, whether it was our basic courses such as First Aid and Fire Fighting, or more preventative options such as our Hazard Identifi cation and Risk Assessment course. “Initially, the adoption of virtual training was quite slow, but as people realised

the pandemic was not going to disappear overnight, so acceptance and uptake of these new solutions grew. Being a member of the South African Institute for Occupational Safety & Health (SAOISH) and having our courses recognised by the organisation, meant that we could ensure that industry professionals were able to refresh and expand their knowledge while earning Continuing Professional Development (CPD) points during this time. Similarly, those looking to update their skills and value to current or potential employers could embark on our Health and Welfare Sector Education and Training Authority (HWSETA) accredited Skills Programme, which provides training to become a safety and health representative. This can now be done virtually or through our other methods of delivery. “With the easing of lockdown restrictions, several companies have preferred to hold training for smaller groups on their own premises, something which we offer with most of our courses. We have also seen a return to some of the classroom-based training, but the new reality will most likely trend towards the more customised and digital solutions to limit the movement of people,” explains Joubert. The economic landscape within South Africa currently does not make for great reading, but as a country and a people we have always shown resilience, and that will be required in the coming months and years. In particular, those companies manufacturing goods locally will play a significant role in the economic recovery and will need to take every opportunity to ensure sustainability and growth. BBF SHEQ Services can further

CERTIFIED TRAINING PROVIDER BBF SHEQ Services, a subsidiary of the BBF Safety Group – Africa’s largest manufacturer of safety footwear and personal protective equipment – offers a range of expert SHEQ (Safety, Health, Environment and Quality) services and specialist training. Training is administered by Advantage ACT, which has over 25 years of SHEQ training experience. Advantage ACT is an ISO 9001 and 45001 certified training provider with courses accredited by HWSETA (Health & Welfare SETA), QCTO (Quality Council for Trades & Occupations) and is recognised by SAIOSH (South African Institute for Occupational Safety & Health).

assist in training staff and key personnel in SHEQ legal liability training and ISO quality management evaluation and certification courses – key considerations for ensuring your business is a viable option for larger local and international corporations. For more information: Wynnecent Nhlengetwa Bronwynn Peters +27 11 396 1246 www.bbfsheqservices.co.za

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SMARTER LIVES, SMARTER HOMES Smart homes are now within reach. The technology makes life easier and helps save costs too

echnology is changing how we engage with each other and the world around us. Smart watches tell us how many steps we take and monitor our heart and health. Our phones allow us to browse dresses in Dublin and have them delivered in Durban. Now, our homes are also connecting, helping us to live more efficient lives and save money too. Smart homes are gaining popularity, especially among younger generations, many of whom already have smart assistants, like Alexa, in their homes. The number of smart homes is expected to surpass 300 million by 2023 and the global market for smart home automation will reach $40-billion by 2020, according to statista.com

What makes your home smart? By connecting objects in your home to the internet, you can control them remotely and use the data they produce to optimise your home environment. Using the internet of things, technology enables you to connect anything from a toaster to your home security system to the internet. Adjustable thermostats not only keep the ambient temperature at the right level, but they also work smartly to ensure they are not on while you are at work. They only switch on when you instruct them on your way home. Fridges can restock themselves, ordering online and getting home delivery. The pandemic has boosted sales of smart appliances. Ovens and hobs that link to online recipes and ensure exact cooking times are a hit. Remote viewing via smartphone of a fridge’s contents can help separated families monitor elderly relatives’ food requirements.

Home security systems can alert you via your phone when there are people in your home or on your property and you can set your lights to come on at different times while you are away, making it look like your home is occupied. Even gardens can benefit from new technology that senses the water content of the soil and can activate your irrigation system without your intervention. A survey conducted in the US and Canada showed that consumers were more than ready to engage with smart technology, including smart thermostats; time-varying rates (demand-side management by smart meters); rooftop solar; and other clean energy and energy-saving technologies. Most participants said they were motivated by the cost-saving capability.

Enabling your future BEGINS with your meter Enjoying the benefits of a smart home begins with ensuring that you can access near real-time usage data. Smart prepaid meters play a significant role in automating and greening your home because they can respond to energy usage and allow for remote control. The near real-time data from smart prepaid meters means users can see exactly how their behaviour is affecting consumption. This heightened awareness has been shown to result in incremental changes that make a difference. Studies done in the UK show that bills are reduced by between five and nine per cent. Other benefits of smart prepaid meters include displays in rands and cents as well as kWh. This helps sensitise users to how they consume power. The automated, accurate billing and detailed reports mean less admin, better management and fewer disputes between landlords and tenants. Landlords also benefit from immediate alerts in the event of tampering.

One of the most exciting benefits of smart meters and smart home appliances is that while just a few years ago it was only the wealthiest who could afford these technologies, today they are reaching price parity with earlier models and smart appliances are extremely accessible. All of this is great news for local consumers looking to enjoy a more responsive home environment and an efficient future.

TRUSTED VENDING SYSTEM PROVIDER Citiq Prepaid is one of the biggest and fastest-growing prepaid sub-meter and utility vending system providers in South Africa, trusted by electrical contractors, property owners, property developers and specifiers, wholesalers and retailers, and tenants. Since 2010, Citiq Prepaid has vended tokens worth 850 GWh of electricity (equivalent to 25 years of the output of one 4MWh power station) through several hundred thousand active meters across the country. We aim to provide innovative, transparent products and solutions that support and empower everyone to manage their utilities. Our proprietary software enables detailed reports to better track and manage electricity and water consumption, helping to eliminate unexpected costs, quickly resolve disputes and simplify payment collection.

For more information: www.citiqprepaid.co.za

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T HE DIGI TA L ECONOM Y

A collaboration during lockdown between Pick n Pay and Bottles saw Bottles change its service offering.

How COVID-19 affixed an ‘e’ to commerce While e-commerce in SA has grown significantly in the past decade or so, it still lags the developed world, writes Rodney Weidemann

Digitally-enabled platform business models are the future of business, writes Rodney Weidemann

he business model of the future is evidenced by the increasing numbers of organisations that are turning to digital platforms to directly drive revenue - a change from merely leveraging digital platforms to support conventional lines of business.

According to Jon Tullett, research manager, IT services for IDC sub-Saharan Africa, COVID-19 greatly accelerated this trend. “When the pandemic struck, lockdown meant people were forced - and generally preferred - to stay indoors. Suddenly, every supermarket chain simply had to have a mobile app, not to mention an e-commerce site, a delivery network, and a support infrastructure for all of them. This led to frantic investment and innovation,” he says. “Essentially, what we saw was several years’ worth of digital evolution taking place in a single quarter, and several years of digital revenue growth taking place at the same time.” Of course, he notes, while buyers who are now used to developed world standards of online commerce and service delivery are unlikely to go back to malls, the market remains stratified – thus excluding many South Africans from effectively using digital services the same way. “Savvy entrepreneurs are using this as an opportunity to build out niche services targeting underserved communities, something that drives up innovation, adoption and revenues, but the digital divide is still a concern.”

“There is something of an ‘activation energy barrier’ to be surmounted by consumers when buying online. Many still feel overawed at the prospect, but once they have crossed that barrier, they rarely return to traditional brick and mortar shopping for the bulk of their requirements. “COVID-19 has acted as a catalyst for greater online spending, in an ultimately sustainable manner.”

“There are enough relatively well-heeled consumers in SA to make online retail viable.” – Chris Gilmour

DID YOU KNOW?

Jon Tullet says that innovation is happening so fast, it now takes ongoing investment to keep up. AI is a great example of this – while still in relative infancy, it’s easy to see the impact it’s going to have on business, demonstrating the importance of consistent investment in what is a rapidly developing technology.

While digital innovation is both exponential and inspiring, adds Tullett, a concern is the impact on businesses or communities which are left behind. “It’s really important that government steps up and supports market-wide digital transformation to mitigate this. Nonetheless, the more businesses move to digital platforms, the more they’ll pull other businesses, and, in some cases, entire supply chains, along. “Last year was a big wake-up call for SA businesses to ramp up their digital operations. It’s obvious that when we find a new balance, it’ll be one that is well removed from the less-digital marketplace that existed in 2019.”

“What we saw was several years’ worth of digital evolution taking place in a single quarter, and several years of digital revenue growth taking place at the same time.” – Jon Tullett

images: istock.com, SUPPLIED

Digital divide or digital development?

strategy by combining forces with Pick n Pay to deliver groceries instead of liquor.” Despite being a developing market that wasn’t truly ready, this sector saw significant growth during lockdown. Gilmour notes that SA is not a “typical” developing market. “It more closely resembles a developed market with chronically high unemployment. That unemployment level mimics the impact of an emerging market. Whatever the definition, there are enough relatively well-heeled consumers in SA to make online retail viable. Only relatively slow and expensive broadband connectivity, coupled with relatively poor logistics capabilities, has restrained the country from realising its online potential. “Looking forward, I expect this improvement to be maintained,” he says.

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any local e-commerce organisations were not ready on a technical level for the sudden lockdown last year. That’s according to investment analyst and market commentator Chris Gilmour who says this was particularly evident with food delivery. “None of the big food retailers were able to properly fulfil the deluge of requests for online delivery that came about just after lockdown. I remember trying a well-known retailer and receiving a slot that was more than a month ahead, which was basically useless,” he says. But, says Gilmour, Pick n Pay and Bottles very quickly “made a plan”. “Since Bottles’ core competency was same-day delivery of alcohol, the liquor ban that came into force on lockdown day meant it no longer had a business. However, within a day or two, the company had totally changed

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The New Normal

Articles inside

THE CUSTOMER

FUTURE-PROOFING THE BUSINESS

LEADERSHIP

THE DIGITAL ECONOMY