Business Chief Asia Magazine - March 2018

March 2018 • ASIA EDITION

Driving Innovation

TOP 10 Asia’s most expensive restaurants

AXA Hong Kong is leading the way in the insurance market by putting the customer at the heart of its services

NOKIA The ‘conscious’ factory of the future

SUN GLOBAL The power of belief

CITY FOCUS Jakarta

FOREWORD WELCOME TO THE latest Asia edition of Business Chief. In our lead feature, we catch up with Mihir Kapadia, CEO of Sun Global Investments, about the company’s success driven by Asian investment.

For technology transformation this month, we take a look at data infrastructure with comments from SAP and Cisco on how businesses can dig through vast quantities of data and use it to their advantage.

Turning to people management, Michelle Boucher from Colonial Life tells us how businesses can adapt their workplace environment to encourage creativity and motivate employees.

In sustainability news, Stuart Hodge asks GM Global Manager of Renewable Energy, Rob Threlkeld why now is the most exciting time to work in sustainability.

Elsewhere, be sure to take a look at our cover story on AXA Hong Kong, as well as the latest news from SCOR and Nokia.

We hope you enjoy the magazine and as always welcome your comments and feedback on Twitter @Business_Chief

Enjoy the issue! asia.businesschief.com www.bizclikmedia.com

3

F E AT U R E S

10 L E A D E R S H I P & S T R AT E G Y

THE POWER OF BELIEF

How one visionary’s belief in the Asian market has driven unprecedented success TECHNOLOGY

PEOPLE

20 30

Why getting data infrastructure right is vital for modern businesses 4

March 2018

Reframing company culture for better workplace diversity

S U S TA I N A B I L I T Y

JAKARTA

42

RENEWABLE ENERGY ENERGY RENEWABLE RENEWABLE IS AFFECTING AFFECTINGENERGY IS IS AFFECTINGWE DO EVERYTHING EVERYTHING EVERYTHING WE WE DO DO

TOP 10

MOST EXPENSIVE RESTAURANTS IN ASIA

52

CITY FOCUS

70

C O M PA N Y P R O F I L ES

84

AXA Hong Kong TECHNOLOGY

122 Nokia

SUPPLY CHAIN

104 SCOR

TECHNOLOGY

6

March 2018

Š 2017 Accenture. All rights reserved.

CAST A WIDER NETWORK

Build next generation platforms

Develop and launch new services

Create real-time operations

Accenture helps communication service providers to align their business objectives with technology capabilities, transform their operating models and engage a wider digital ecosystem to capture the promise of the pervasive network.

See how at accenture.com/widernetwork

L E A D E R S H I P & S T R AT E G Y

THE POWER OF BELIEF

How one visionary’s belief in the Asian market has driven unprecedented success

Sun Global Investments CEO Mihir Kapadia talks us through the company’s success and how it has been driven by Asian investment Writ ten by STUART HODGE

L E A D E R S H I P & S T R AT E G Y INDIAN ENTREPRENEUR MIHIR Kapadia has always believed in the potential of the Asian market.

Back in the early part of the century, when many investors were looking towards Europe and the United States, he instead decided to look towards identifying emerging markets. Kapadia successfully navigated his first startup through the bursting of the DotCom bubble and his current firm, Sun Global Investments (SGI), through the global financial crash of 2008, which was its first year of trading. Sun Global today has $500mn of assets under advice, and is now a leading integrated end-to-end financial services firm with clients varying from institutional investors, family offices and corporate clients who turn to Sun Global for wealth management, corporate financial securities trading, and investment management and advice.

Throughout the global recession, Kapadia’s belief in Asia was unwavering, as once again he pioneered looking eastwards after the crash, backing his judgement whilst many of his contemporaries hesitated. “We were happy to push the envelope and look at the world, not just Europe and the UK,” explains 12

March 2018

Kapadia. “We started investing in Asia, then Latin America, the Middle East, Central and Eastern Europe, along with Europe and the US. That on its own, with the same kind of risk profile, enabled us to add close to two to three percentage points in terms of return.

“Number two: we were able to take bold decisions where we could actually see that the emerging markets were getting far better returns. We invested in fixed income in emerging markets. When Europe was working on a negative return in terms of fixed income, but people didn’t have a choice, we actually identified South Korea, India and China as potential markets. We even carried out investments in the local rupee, but what we were very clear about was that the risk profile had to be very, very high quality, and hence we invested only in the top names of those countries or even government-owned entities.”

This strategy has paid off, with the business expanding from just a threeperson team in London back in 2008, to now having offices in both Dubai and Mumbai, and Kapadia estimating growth figures of between 24% and 30% year-on-year in terms of overall

Mihir Kapadia, CEO, Sun Global Investments

13

L E A D E R S H I P & S T R AT E G Y

SUN GLOBAL AND CSR IN INDIA Sun Global investment has a strong belief in “giving back” to society and takes steps to benefit communities on a local and global level.

Sun Global invests in philanthropic initiatives such as The Akshaya Patra Foundation and Pratham, which provide food and education for underprivileged children in India, as well as the Sanskriti Foundation which works to preserve Indian art and culture 14

March 2018

“The continued suc of this fund reflects well-placed confide that India is one of t investment opportu of today and tomorr Mihir Kapadia CEO, Sun Global Investments

top and bottom line. The company is also continuing to grow in numbers, with the team currently looking to add to its wealth management and corporate finance teams, which have both seen a big increase in revenue.

Kapadia feels the key to the company’s success so far has been the strong culture of entrepreneurship within the business that he’s carefully cultivated, as well as a willingness to adapt and not being afraid to take calculated risks. “The markets and the business are both extremely dynamic,” he reflects. “As far as we

ccess s our ence the key unities row�

are concerned, obviously there are several things which are changing.

Number one: the requirements and demands for clients and investors are obviously ever-changing based on market dynamics. Secondly, the ever-changing regulations and regulatory requirements of various regulators across different geographies also have a big impact on the business these days. A third factor that’s changing is the market itself, where it is driven by and being affected by various technologies, and various companies

using different technologies, etc. “As an investment advisor or manager, we have to not only adapt our business and our investment ideologies, but also put in a lot of effort. We are investing in a lot of systems. We are investing heavily in training because we have to train and retrain our employees to be able to adapt to these new systems.

Obviously, the team now has significant experience. Everybody has grown with the company and we have created different business verticals with various team leaders

15

L E A D E R S H I P & S T R AT E G Y

One of Sun Global’s offices is in Mumbai, India

and people who are working with them, but in terms of leadership I am now involved in various new ideas, initiating different strategies… More importantly, I not only trust these team leaders, but once the plan is made, I let them run with it and make sure I help them succeed.

“As a leader, my job is now more about grooming the next set of CaptionWe to have the image leaders. some phenomenal 16

March 2018

“I not only trust these team leaders, but once the plan is made, I let them run with it and make sure I help them succeed” Mihir Kapadia CEO, Sun Global Investments

people currently working within the organisation who are running their individual verticals extremely well.

They are being recognised not only by our clients, but also within the industry. That, to me, is the greatest success story of my leadership over the last 10-plus years.”

As well as the company’s success in delivering for its clients, in 2015 Kapadia and SGI embarked on an even more ambitious adventure by creating the world’s first Indian fixed income exchange-traded fund (ETF) bond in November 2015, and this year it reached its $10mn benchmark. Kapadia says: “We launched an ETF that we listed in London as well as in Frankfurt, which was investing purely in Indian government-owned entities, fixed income etc. We realised that there was a huge carry trade as the rupee was fairly stable. We were investing at about 8.25-8.5% locally, compared to Sterling as well as Euro, it was a huge carry. The continued success of this fund reflects our well-placed confidence that India is one of the key investment opportunities of today and tomorrow, with funds like ours benefitting

from, and adding to, its success.”

Between the November 2015 launch and the fund’s two-year anniversary last year, SGI has calculated that it made almost 30% on that fixed income transaction year-on-year in Sterling terms, and between 10% and 11% when it came to the Euro. It’s safe to say that the investment paid off for SGI, and Kapadia has no desire to change a winning strategic formula. “We have a core philosophy which remains constant,” the CEO adds. “We drill down into various verticals where we have created teams of superbly expert people. When presented with a particular idea or a particular challenge, we go down to the basics and try to analyse the opportunity or the issue with our longstanding expertise and how we have dealt with various situations in the past.

When there is something new or innovative, we look to understand how it will affect either our business or our clients, and with that, an idea is formed and then tested. There is a core committee of three individuals who will look at all the angles to it, and once we agree, it is adopted and then executed all the way through.”

17

We deliver you the stories that matter…

Click to read

www.supplychaindigital.com

H O M E TO I N D U ST RY– L E AD I N G D I G ITAL B U S I N ES S P L AT FO R M S

“ We recently worked with BizClik Media on an article which characterizes and explains the total value that Kudu Supply Chain has on company growth plans.

From start to the finish, it was a pleasure working with the BizClik team. The feedback we have received from different audience groups on the article was phenomenal.

It has attracted a lot of interest and attention to our company, our growth plans and has definitely created additional value to what we are trying to achieve.”

– Murat Ungun, Senior VP Supply Chain Kudu Corp

HAVE YOU SEEN OUR OTHER TITLES?

TECHNOLOGY

WHY GETTING DATA INFRASTRUCTURE RIGHT IS VITAL FOR MODERN BUSINESSES Stuart Hodge speaks to experts from SAP, Cisco and Warwick Analytics to outline how quality, effective data infrastructure can help optimise a company’s business processes…

Writ ten by STUART HODGE

TECHNOLOGY ONE OF THE most important hires for companies across most sectors these days is that of the data scientist.

As data analysis and technology strategy expert Q Ethan McCallum observes on his website, there is no point in hiring a data scientist until you have the correct data infrastructure in place. Doing so would be akin to hiring Lewis Hamilton for a racing team, but providing him with a car liable to break down before the finish line. “To invest in such a data infrastructure is to invest in the longterm success of your firm’s data science activities,” Q McCallum notes.

The principal challenges with data come mainly from the volume, the plurality of sources and types, and the discrepancies in how it is gathered, processed and ultimately used.

Sven Denecken, Head of Product Management and Co-Innovation for SAP’s S/4HANA business suite, embraces the challenge of navigating the ever-changing tides when it comes to data. “As a product manager, I’m like a kid in a candy store. I want to use that technology. I want to use that data. I want to use those concepts, but my job is to bring it all together with an actual business process. Big 22

March 2018

“You cannot know exactly what your customers want tomorrow, but you want to predict it as much as you can” SVEN DENECKEN Head of Product Management and Co-Innovation for SAP’s S/4HANA

data is more important than ever and the technology is there to compute it in vast amounts and with great speed.

The more you can virtualise and put into in-memory speed computing, the better you will be able to adapt your business processes. You cannot know exactly what your customers want tomorrow, but you want to predict it as much as you can.”

That’s how companies can ensure proper enterprise resource planning, and that is what the SAP S/4HANA suite does: a real-time

enterprise resource management suite for digital business built on the company’s advanced in-memory platform, SAP HANA, deployable in the cloud or on-premise.

Denecken, not unexpectedly, describes it as “the best enterprise resource planning software on the cloud” barring none, and he was happy to break down what he sees as the prerequisites for any company to succeed when it comes to structuring and interpreting data.

“I would argue infrastructure as a

service, security, and the availability of the data are three key ingredients you need to start with,” he asserts.

Whether talking about unstructured, structured or semi-structured data, Denecken is adamant these different types need to be combined if a company hopes to optimise its business processes. Everyone talks about big data. “I’m actually more a fan of the right data. Big data’s the starting point. It’s a commodity. The right data is bringing you a competitive advantage.

23

TECHNOLOGY

“The trick is to analyse 100% of the right data in the right way” DAN SOMERS CEO Warwick Analytics

24

March 2018

“We need to realise that data itself is the new gold. It’s a case of the more data the better, in whatever shape or form: unstructured, structured, or semi-structured; we need to collect much more. The key question is how a company deals with it. For example, text messages, audio, semi-structured data, are much less voluminous… I want to make sure that we process this in the right way. This is where process knowledge and data knowledge need to come together.”

This is also where a lot of companies tend to fall down, according to Dan Somers, CEO of predictive analytics firm Warwick Analytics. “Less than 1% of data is analysed. This in itself is bad, but there are also a lot of types of data which are not very informative.

The trick is to analyse 100% of the right data in the right way. Mostly, people are just deploying analytics for visualisation. Unstructured and text data are very poorly analysed and form the majority of data today.

Much of the time there’s a ‘so what’ at the end of analysis because people are asking the wrong question.

“One example is analysing voice of customer data for topics and sentiment whereas the better

analysis is to validate (remove trolls and statistically validate across all customers removing skews) and then isolate the topics and sentiment which drive customer churn and/or loyalty, as these are the things that predictively make the difference.

“Start with the right question and analyse the right data,” Somers advises. “Then, once you start from there, find the tools that can help, don’t always just do what the data science team is capable of. It must fit the business and be flexible enough to be updated and ‘live’ as things inevitably evolve, rather than bogging the data science team down in curation.”

Being able to do all of these things requires a strong and robust network, or at least one which is attuned to a business’s own requirements and needs. That is very much the ‘domain’ of David Goff, who is Head of Enterprise Network for UK and Ireland for world networking leader Cisco.

“What my team is there to do, and what Enterprise Network is there to do, is to find ways that we can drastically simplify the network or actually make the network intuitive,” he explains. “To make it intuitive – that means to be able to see, 25

to think, and to act itself, without manual intervention requires data.

“Then it’s about how we use visibility of data to be able to inform the network and to ensure that the network is something that adapts and has the rigidity that business needs to be able to capture transitions on IAP, cloud and mobility.” But from a network point of view, it’s less about looking within the data itself and more about how its transportation can be facilitated.

All of the factors outlined so far need to be considered when it comes to how to structure data, but what 26

March 2018

also needs to be remembered is that technology is constantly evolving and that the playing field is always subject to disruption and change.

Goff says he expects “ongoing innovation, creating ecosystems” and Denecken agrees that there is further room for disruption in the data space – in fact, he expects it, saying that anyone who manages to marry “the combination of big data, AI and business processes” will be on to a winner in that regard. He acknowledges that more and more processes are going to become streamlined

TECHNOLOGY “I’m not going to hire a consultant to dig at that for a year – but I will rely on certain market data to sense it, and then based on that sensing, drive my business processes or my automation” DAVID GOFF Head of Enterprise Network for Cisco in UK and Ireland

or automated thanks to artificial intelligence and machine learning.

“There will be always niches where experts and very bright people will find an even better way or will fill in holes,” he adds. “Already today, what we can do with process robotic automation disrupts many business processes. So, would I, today, invest into a short service centre company to outsource labour tasks? Personally, I wouldn’t. I think those tasks will be automated first.

“On the other side, a lot of opportunities will be created. There’s a lot of discussion about things like

access to big data, access with algorithms to make it more intelligent etc., but the closer you get to the business process, the more you will own that piece of the data. The further you go away, the more you will rely on third-party resources. Maybe also to pre-empt it, to pre-condition it, to pre-extract certain data. If I want to know what my customer base is doing, I’m not going to hire a consultant to dig at that for a year – but I will rely on certain market data to sense it, and then based on that sensing, drive my business processes or my automation.”

27

JOIN THE WORLD’S FASTEST GROW

READ THE LA

WWW.CONSTRUCT

H O M E TO I N D U ST RY– L E AD I N G D I G ITAL B U S I N ES S P L AT FO R M S

WING CONSTRUCTION COMMUNITY

ATEST ISSUE

TIONGLOBAL.COM March 2018 • USA EDITION

Business process outsourcing and the digital revolution

HAVE YOU SEEN OUR OTHER TITLES?

CITY FOCUS

AUSTIN Top 10

Most expensive restaurants

®

BREAKING THE MOLD OF I.T

Andres Cubero, the Jetro Restaurant Depot’s firstever CIO on recognizing the importance of digitization

PEOPLE

Reframing company culture for better workplace diversity Michelle Boucher, Vice President, Global Talent Management at Colonial Life advises how creativity can be fostered in the workplace

Writ ten by MICHELLE BOUCHER

PEOPLE

Google spent $265mn on a datadriven diversity programme 83% of Vodafone employees say flexible working has helped improve productivity

Boston Consulting Group’s stunning New York office

MOST OF US would agree the greater the diversity of minds in business, the greater the diversity of perspectives, talents and creative solutions.

However, progress of achieving workplace diversity has been surprisingly sluggish. For example, Google’s data-driven diversity program cost $265mn to implement, but still failed to significantly change the composition of its workforce. Such results imply money isn’t everything when it comes 32

March 2018

to implementing diversity initiatives.

However, with the right internal strategies and robust planning, there are steps any organisation can take to help its business embrace diversity.

REASSESS TRADITIONAL WORKPLACE ENVIRONMENTS From interview processes to decision making, most of our workplace environments are built around eye contact, noisy group work and

generally overstimulating settings. But traditional workplace environments and routines may not be for everyone.

By adapting your workplace to cater to a diverse array of age groups, personalities and work styles, you can drive better efficiency and performance.

For example, consider offering the option of open office spaces versus quieter, private working space for your employees, so they can pick an environment where they’ll be most

‘ It’s valuable to move the culture of your business away from being dominated by how many hours employees work in the office’

33

PEOPLE 5 tips on how to improve your creative space…

• Allow employees to have a choice of which environment they will be productive in, for example between an open workspace and a quieter, private working space.

• Remember the workspace needn’t be the office and if your organisation offers flexible working, employees can choose their own space, with work from home options proving popular.

• If necessary, make use of virtual technology allowing users to remain in an environment they find comfortable, especially for interviews.

• Subtly encourage collaboration by making sure your office space has ample space to connect and chat, even if this may be in a break area.

• P rioritise organising employee affinity groups; communities within corporations that encourage people with similar experiences and backgrounds to connect.

Adobe’s Lehi offices boast an indoor climbing wall and is part of Adobe’s wellness initiative 34

March 2018

productive. Individuals with autism or hyper-sensitive personalities may need different workplace accommodations, such as changes to lighting or headphones to prevent auditory overstimulation.

Team meetings and brainstorms are central to many workplace routines, but not everyone excels in these conditions. In fact, research by Harvard shows some employees worry about other team members’ views and when they perceive others have more expertise, their performance declines. This is especially challenging for introverted or less confident individuals.

Encouraging a subtle collaborative environment can prevent employees from feeling forced into sharing ideas and concerns. Simple ways to do this include integrating mentoring into everyday practices and modelling collaborative behaviour from the top down.

CONSIDER INDIVIDUAL STRENGTHS AND WEAKNESSES What if we created tailored roles to really benefit from each employee’s unique talents and contributions?

‘ Could your interviews be conducted virtually?

Some candidates may interview better in surroundings that are familiar to them’

Some in the business world are already beginning to think this way: A PricewaterhouseCoopers 2030 report entitled ‘Workforce of the future’ discusses the benefits of workplaces that focus on individual talents to compete in the race to give consumers what they want.

Business leaders can tap into this by developing non-traditional roles that maximise individual strengths and are less reliant on linear thinking. For example, recent ground-breaking research from Johan Wiklund revealed many individuals with attention deficit hyperactivity disorder are great at solving certain types of complex issues in isolation because they become hyper-focused on a problem capturing their attention.

The research also discovered many 35

PEOPLE individuals with ADHD enjoy improvisation, so high-pressure pitches and shifting strategy may be less emotionally and cognitively taxing for these workers. If nurtured in the right way, these skills are extremely effective in business.

While it’s fine to set individual tasks, ensure non-traditional roles still include a collaborative element.

Encourage teams to share ideas and feedback on other workplace projects with each other to ensure everyone feels part of a team and no one becomes too isolated.

PROMOTE FLEXIBILITY AND TRANSPARENCY In a global workplace survey by Vodafone entitled ‘Flexible: friend or foe?’, 83% of respondents said adopting flexible working had helped improved productivity and 61% said it helped increase company profits.

That’s why it’s valuable to move the culture of your business away from being dominated by how many hours employees work in the office.

You can do this by writing flexible policies with work-from-home options and encouraging employees to use that time. Not only does this show 36

March 2018

Instagram’s Silicon Valley office

willingness to support individual needs, it’s a good way to alleviate the additional stress that comes with commuting or having to work overtime.

Help people understand the nuances of their jobs, too. We want to celebrate employees’ unique offerings and diverse perspectives, but we also want them to understand how their individual routines, what they do and why they do it, contribute to overall business success.

About Colonial Life

‘ Encouraging a subtle collaborative environment can prevent employees from feeling forced into sharing ideas and concerns’

CHALLENGE TRADITIONAL RECRUITING PROCESSES Employee Benefit News reports it costs employers 33% of a worker’s annual salary to hire a replacement if the worker leaves the company, so recruiting and retaining the right person for your business is vital.

However, the behaviour of some individuals may run counter to common notions of what makes a good employee.

This doesn’t mean solid communication skills, being a team player, emotional

Colonial Life is a market leader in providing financial protection benefits through the workplace, including disability, life, accident, dental, cancer, critical illness and hospital confinement indemnity insurance. The company’s benefit services and education, innovative enrolment technology and personal service support more than 86,000 businesses and organisations, representing 3.7mn of America’s workers and their families

intelligence and the ability to network aren’t all important skills to have in a workplace. But focusing only on traditional criteria may systematically screen out individuals with unique special talents.

Think about ways you can adapt your hiring policies to encourage diversity.

Could your interviews be conducted virtually? Some candidates may interview better in surroundings that are familiar to them. Or would it be better not to hold a traditional interview at all?

37

PEOPLE CREATIVE SPACES AROUND THE WORLD… What makes a creative space?

Good design from the outset certainly helps. Fortune has mentioned some of its favourite offices around the world and these include…

Hyland Software

Adobe Systems – the company’s Lehi office features a rock-climbing wall so employees can take a break but stay motivated to make it to the top. The adaptation is part of Adobe’s wellness initiative and the idea was put forward by staff themselves.

Autodesk – the company’s California office features a green space with deckchairs and hammocks so employees can take a well-earned rest or nap. This is part of a sleek, fresh design.

Hyland Software – the company’s offices feature an onsite barber offering a relaxing wet shave in a comfortable chair.

Boston Consulting Group – the company’s New York offices have 38

March 2018

Zappos office a photo wall which employees can decorate with their own snaps. This touch of personality encourages employees to “own the space” but remains in keeping with the sleek wooden design.

Zappos.com – the Zappos Family office is bright and airy with an eclectic mix of styles and playful features, including a ball pit and stuffed camel.

‘ By adapting your workplace to cater to a diverse array of age groups, personalities and work styles, you can drive better efficiency and performance’

Autodesk’s San Francisco office Adapting how the interview process is structured was a key action taken

by Willis Towers Watson in its bid to attract colleagues on the autism spectrum. Company research revealed a work trial or test can often be a better way to assess someone’s suitability for a role.

CREATE CONNECTIONS While diversity is about celebrating and leveraging differences, no one wants to feel so unique they’re isolated from peers and adrift in the workplace.

Prioritise organising employee resource and affinity groups – communities

within corporations that encourage people with similar experiences and backgrounds to connect.

By providing such avenues for networking, socialising and mentoring, you demonstrate that diverse individuals are not only finding success within the company, they’re willing to help others succeed as well.

With tools like these at their disposal, employees are far more likely to feel part of a diverse yet inclusive workforce.

After all, what really matters is your workforce feels secure in an accepting work environment, allowing them – and your business – to thrive.

39

VISIT OUR WEBSITE

READ THE LATEST ISSUE

S U S TA I N A B I L I T Y

RENEWABLE ENER RENEWABLE ENER RENEWABLE ENER IS AFFECTING IS AFFECTING IS AFFECTING EVERYTHING WE D EVERYTHING WE D EVERYTHING WE D

ERGY ERGY ERGY DO DO DO

General Motors’ Global Manager of Renewables Rob Threlkeld says right now is the most exciting time to work in sustainability – Business Chief finds out why Written by STUART HODGE

S U S TA I N A B I L I T Y

FF

or a company like General Motors (GM), sustainability is now a vital cog in its global operations.

With businesses now working towards objectives set out in the Paris Agreement on Climate Action, there is now not just an incentive, but an imperative to work towards the goals delineated in the strategy, which aims for a global low-carbon economy by 2050.

Companies have been aware of the need to take a more ecological outlook for a number of years now, well before the agreement was submitted to the UN. A byproduct of this has been an exponential increase in the pace of innovation we’ve seen 44

March 2018

General Motors World Headquarters

in the renewables space across all industries. It’s particularly true for GM, which has signed up to the RE100 agreement, outlining how the world’s most influential companies are committed to 100% renewable power.

That pace of innovation is something that is only set to continue, says Rob Threlkeld, Global Manager of Renewables at GM. He believes it will only get quicker as time goes on. “You’ve definitely seen it rapidly

“From a company standpoint, we’re always looking for the most economic source of generation that we can procure and sometimes getting it to our facilities can be a challenge” – Rob Threlkeld, Global Manager of Renewables at GM

- Detroit, MI, USA

increase in the last five years,” he says, “especially with smart meters and other applications that allow you to choose when you use certain types of electricity – whether it’s green or not – and what the costs actually are.

“It’s also in the transportation sector. Five years ago, there was not a lot of talk around autonomous vehicles. Electrification was starting to just start to come around. We only had the (Chevrolet) Volt at that

time. We’ve now got the Volt and the (Chevrolet) Bolt. But you can see this massive switch to where autonomous vehicles are definitely part of a future with zero crashes, zero emissions, and zero congestion components. You’ve seen this technology revolution in both the utility and transportation sectors. You’re going to see more change in those sectors in the next five years than we’ve seen in the last 50-100 years.”

45

BREAKING DOWN GM’S FOUR-PILLAR RENEWABLES STRATEGY… ENERGY EFFICIENCY GM knows that reducing its overall energy consumption, as a company, has a direct correlation to its renewable energy percentages. Whether it’s something as routine as switching out lights to LEDs, GM looks at how it can optimise its energy management systems around its production and manufacturing sites, in particular, to become energy efficient.

SOURCING RENEWABLES Finding out the cheapest and most efficient means by which renewable energy sources can be secured is vital to any company, particularly a global enterprise like GM. The main two methods GM uses to do this is through power purchase agreements or onsite generation.

ADDRESSING VARIANCE AND INTERMITTENCY On the automotive side, this can mean looking at what the company is doing in terms of its advanced transport operations, whether it's battery storage, electric vehicles, fuel cells, etc. On a more general basis it refers to what the company is doing to address the intermittency of renewables on the grid by innovating when it comes to, for example, using new storage technologies or electrification efforts.

IDENTIFYING OPPORTUNITIES The final pillar is essentially how GM really leverages policy and scale to look at green tariffs, opportunities with utilities, and working with regional transmission operators. The company always looks to address the technology transformation that's going on in a way that has a “broader value” to the communities it builds manufacturing facilities on, as well as consumers.

46

March 2018

S U S TA I N A B I L I T Y ENERGY DEMAND Despite these disruptive changes in mentality and attitude, there are still plenty of concerns around where these efforts are ultimately headed. In the US, which remains GM’s primary base of operations, a recent report from the Wind Energy Foundation identified a serious gap between corporate America’s near-term demand for renewable energy and the electricity grid’s ability to meet that demand. Threlkeld says the issues cited in the report are simply part of the natural progression of change.

“I think it’s just part of the evolution of the process,” he says. “Going back five years, as we looked at how corporations such as GM could scale up the use of renewables, it was more around what the companies really need to do in this space to engage with each other. The next logical step was: how do we gauge the utilities, which are really the natural potential owners of the renewable energy assets? That’s where we started to take off as we looked at green tariffs in the US and what utilities were starting to offer.

“The last component in this natural progression is the issue of moving this

low-cost electricity. From a company standpoint, we’re always looking for the most economic source of generation that we can procure and sometimes getting it to our facilities can be a challenge. How do we now engage relevant stakeholders – the regional transmission operators or the independent system operators in this process – as technology drives the future both in utilities and transport? It has to be in a way that ultimately benefits all the customers. We don’t want to do unnecessary upgrades should technology supersede our work.”

ELECTRIC CARS AND THE FUTURE OF TRANSPORTATION While GM has grown to much more than just an automotive enterprise, it makes sense to scrutinise the sustainability of the company’s vehicular operations. The technological transformation of cars into electric vehicles, autonomous vehicles and fuel cells has completely changed the way the organisation now looks at its automotive strategy.

“Where we used to be more worried about the price of a litre of gasoline, it’s now focused on the cost of electricity, 47

S U S TA I N A B I L I T Y and when the consumer actually utilises that electricity,” says Threlkeld.

“You can see transformation with a lot of our efforts in energy efficiency and renewables in support of our manufacturing side of the operation that now impacts the product side.

From a competitive standpoint, they’re really linked together in a way they weren’t before, even a few years ago.

“Last October, we announced 20 new electric vehicles between now and 2023 as we march towards that all-electric future. The ‘zero emissions’ component is an important part of our product messaging and sets a competitive opportunity for us to look at how we viewed manufacturing in the past during our previous sustainability efforts. We’ve always focused the company in that direction. We’ve now got it both on the manufacturing and the product side when you look at the mobility component associated with the future of transportation.”

EFFECTIVE STRATEGISATION AND A SUSTAINABLE FUTURE GM’s four pillar sustainability strategy is fairly straightforward in terms of the goals it sets out and its implementation, but every 48

March 2018

decision the company makes is thoroughly considered and well thought out. Threlkeld says it is therefore important to stay on top of what’s happening with regards sustainability and renewables more widely. “I think it’s very important to strategise,” he affirms. “As a person who has always been educated by what’s going on in the industry, I like to read a lot of different articles on what the industry is doing. I need to feel the pulse of some of these technological changes and how they have an impact on the broader efforts in electrification, whether it’s transportation or renewables. It’s really about gaining that knowledge and then being able to strategise

GM’S RENEWABLE GOALS… • ALL FACILITIES TO BE POWERED BY 100% RENEWABLE ENERGY • ALL FACILITIES TO BE 100% LANDFILL FREE • ACHIEVE 20% REDUCTION IN ENERGY INTENSITY BY 2020 • ACHIEVE 20% REDUCTION IN CARBON INTENSITY BY 2020 • ACHIEVE 15% REDUCTION IN WATER INTENSITY BY 2020

HOW ARE THE EFFORTS GOING? “I think it's progressing well,” answers Threlkeld. “I just recently signed two 100-megawatt wind power purchase agreements to supply 100% of our load for seven of our manufacturing facilities in Ohio and Indiana. Those two were some of our largest deals to date and will actually get us to 20% of our electricity being matched with renewable energy by the end of 2018.”

S U S TA I N A B I L I T Y

around all the changes taking place.

Another change that Threlkeld has seen is a move away from simply considering the environmental, operational and potential PR consequences of any decisions regarding renewables, to a situation now where sustainability efforts are as much motivated by financial considerations as the other factors. “In every project we do, we look at it from the financial perspective and obviously pull all the additional intangible benefits, 50

March 2018

environmental attributes, the right things for the company to do in our efforts towards sustainability.

Everything we’re looking at is purely driven by the financials now.�

The renewables space, like any other, has its daily ups and downs as demand increases and decreases, despite the generally increasing need for it, and it works similarly on a month-to-month or year-toyear trend. Threlkeld feels that the process of learning when the peaks and troughs happen is an important

“I think battery storage is definitely going to be a disruptor in this space, as well as blockchain and artificial intelligence” – Rob Threlkeld, Global Manager of Renewables at GM

component of integrating the proper generation sources at the lowest cost possible. He is also aware that, when it comes to technology, it’s an ever-changing landscape, and is in no doubt as to where the next disruption may be coming from.

“I think battery storage is definitely going to be a disruptor in this space, as well as blockchain and artificial intelligence,” asserts Threlkeld. “How do you leverage all the technology and what is going on in the systems, whether it’s the grid or an individual

solar array or your home? How do those all integrate together to move the system in a much smarter way so it could deploy generation assets when needed as well as reducing generation assets when not needed, such as charging electric vehicles when the grid is actually requesting you to do so. With those questions in mind, I think artificial intelligence, blockchain, and those efforts are going to be key for us going forward to really leverage this technological transformation.”

51

TOP 10

TOP 10

MOST EXPENSIVE RESTAURANTS IN ASIA

With more Michelin stars than anywhere else on Earth, Tokyo’s domination comes as no surprise. But on the matter of price, does its restaurants even break the top five?

Writ ten by SAM MUSGUIN -ROWE

TOP 10

10

NIHONRYORI RYUGIN, TOKYO www.nihonryori-ryugin.com/en A tiny restaurant in Roppongi that boasts three Michelin stars, a message of ‘Wa’ (harmony) and a tasting menu that combines traditional Japanese fare with the cream of local produce. For $245 you’ll sample the likes of wild boar, ezo deer, straw-grilled pigeon and sanuki olive beef.

MICHELIN RATING: *** 54

March 2018

55

15 – 16 March 2018 Singapore EXPO

Go Global. Deliver Local.

Asia’s Largest Conference & Exhibition for Retail, eCommerce, Logistics and Parcel Industries

From O2O, connected retail commerce to retail 360; redesign fulfilment for ondemand delivery to urban logistics and smart logistics; we will cover it all. These brands have signed up for LMFAsia 2018. Register now to meet them!

Anje, Akamai Technologies, Detrack, DHL eCommerce, Hangzhou Dongcheng Electronic Co, Hakovo, Kerry Logistics, iCommerce, LEVerne, Logistics Worldwide Express, Love Bonito, Mitsui Banking Corporation, Open Port, Park N Parcel, Procter & Gamble, ShenZhen ZHILAI SCI and Tech Co, ShopJJ, Ralali, UCL, Tokyo Fashion Singapore, TYT Corporation, Unilever Asia, United Parcel Services, Sumitomo, Yingen Batik, 13rushes, 65drones, and more.

Key Speakers

Janette Toral

E-Commerce Advocate, Digital Influencer DigitalFilipino

Bryan See Toh Chief Executive Officer Park N Parcel

Key Highlights 100 speakers, 4 tracks, 2 Roundtables 100 exhibitors & 3,500 sqm 2,500 professionals

NEW Demo Zone on material handling equipment and warehousing solutions NEW Retail and Marketplace Pavilion

FREE eCommerce Seminars 4 Workshops on taxation, B2B eCommerce, cross-border shipping …and more

Jeffrey Siy Co-Founder Galleon.ph

SAVE 27%

Arne Jeroschewski CEO and Founder Parcel Perform

JUST S$496 PER PERSON FOR 3 OR MORE FREE ADMISSION FOR TRADE VISITORS BOOK NOW

Contact Us at

lmfasia@singex.com Takayuki Akahodani Join us #LMFAsia #LMFConnect @LMFAsia

Founder & CEO Hakovo

Sultan Joson

Managing Director Cloud Logic

Last Mile Fulfilment Asia Group Last Mile Fulfilment Asia

www.lmfasia.com

AMBER, HONG KONG www.amberhongkong.com Trained in the kitchens of Guy Savoy, Pierre Gagnaire and Alain Passard, Dutch chef Richard Ekkebus blends a French cooking style with Hong Kong’s unique collision of East and West. The $265 ‘Degustation Menu’ comprises Amber’s signature dishes, including foie gras, wagyu beef and oysters from Hakata Bay.

MICHELIN RATING: **

09

57

SUKIYABASHI JIRO, TOKYO www.sushi-jiro.jp Maybe it’s Japanese hospitality, or because the chef – world famous sushi master Jiro Ono – is in his nineties, however the 20-piece tasting menu ($275 plus tax) is so vast that the restaurant’s website vows to “take care to make each piece smaller for older women customers”. Other kindly instructions include not to dip the sushi in soy (“you will spoil its flavour”) and to cleanse the palate between dishes with green tea. Arigato!

MICHELIN RATING: ***

08

Part of

Held in Conjunction with

24 – 25 April 2018 Marina Bay Sands, Singapore

Digitalization & Disruption take centre-stage at TOC Asia Join Shippers, Logistics Providers, Shipping Lines, 3PLs, Port Authorities, Terminal Operators to learn, debate and network

Big Box Shipper Debate

Impact of Industry 4.0

Trade & Shipping Outlook

OBOR

Asia & Middle East Infrastructure

New Trade Dynamics

Speakers include

Find out more

www.tocevents-asia.com

59

The leading maritime & offshore exhibition in Southeast Asia Conne c ting the world , in the hear t of Asia

6

exhibition halls across 21,000 sqm exhibiting area

14,954 visitors from Asia

18

official pavilions

1,500+ exhibitors from 60 countries

At tended by decision makers in Asia Ve s s e l o w n e r s • S h i py a r d / s h i p b u i l d i n g • S h i p m a n a g e m e n t Te c h n i c a l p r o c u r e r s • S u p e r i n t e n d e n t s …

JOIN US NOW www.apmaritime.com

60

March 2018

T: +65 6780 4586 E: apm.sales@reedexpo.com.sg

07 NARISAWA, TOKYO www.narisawa-yoshihiro.com/en As well as the most important factor – taste – chef Yoshihiro Narisawa (who trained under Joël Robuchon) aims to involve nature within each plate, ensuring the aroma and texture of every meal is maximised through the perfect blend of ingredients. It worked. Two Michelin stars later, Narisawa is featured among the World’s 50 Best Restaurants. His seasonal tasting menu is $295, plus tax.

MICHELIN RATING: **

61

TOP 10

06 81/2 OTTO E MEZZO BOMBANA, SHANGHAI www.ottoemezzobombana.com/shanghai With two further outposts in Hong Kong and Macau (plus Opera Bombana in Beijing and Ciak in Hong Kong), chef Umberto Bombana has brought his patented brand of Italian elegance to the shores of Asia, by way of a (welcome) culinary invasion. Here, his five-course degustation menu ($315) delights with lamb in salt crust, oven-roasted turbot and homemade agnolotti, with pear sorbet and jumbo cherry compote to finish.

MICHELIN RATING: **

62

March 2018

ARAGAWA, TOKYO www.aragawa.jp/english.html The menu changes, as does the price (although expect to pay a minimum of $315), yet one thing is exquisitely constant: the steak. Revered around the world for its wagyu, the meat at Aragawa (which literally means the hide of an animal) is simply flavoured with salt and pepper, then charcoal broiled.

Tables are maddeningly hard to come by but, once you’ve tasted the food, it’s easy to see why.

MICHELIN RATING: **

05

63

TOP 10

RESTAURANT ANDRÉ, SINGAPORE www.restaurantandre.com Eight elements, 24 inspiring dishes. With ‘Octaphilosophy’, André Chiang centres a culinary manifesto around eight individual qualities: unique, pure, texture, memory, south, salt, artisan and terroir. Intertwining Chiang’s French training and Japanese upbringing within a Singaporean setting, the resulting menu ($420) is as inimitable as it is remarkable. But act fast, Chiang rocked the gastronomic world by announcing his plan to close Restaurant André at some point in 2018.

MICHELIN RATING: **

04 64

March 2018

03 KITCHO ARASHIYAMA HONTEN, KYOTO www.kyoto-kitcho.com Dishes so artistically made that it’s almost a shame to eat them, chef Kunio Tokuaka’s matches seasonal ingredients with priceless antique tableware, with the local Arashiyama scenery making for a particularly spectacular backdrop.

And the actual food? The traditional Japanese cuisine – $550 for 10-courses, including boiled blue crab with vinegar jelly, or sushi of barracuda – is suitably delicious. For the even more adventurous, there’s a ‘Chef’s Omakase’ menu that’s priced at market value.

MICHELIN RATING: *** 65

TOP 10

THE KRUG ROOM, HONG KONG http://bit.ly/2Cjagud Full disclosure: a sizeable portion of your $725 is going towards the five individual vintages of champagne being paired with your meal, however the ‘Krug Ultimate Vintage Package’ remains a gastronome’s daydream. Scallop, turbot, cavair and venison join innovative menu items like cheese and truffle toast, smoked eel, and chestnut tapioca.

66

March 2018

0

02

TOP 10

ULTRAVIOLET, SHANGHAI www.uvbypp.cc Three Michelin stars. A World’s Best Restaurant mainstay since 2015. And among Asia’s 50 Best Restaurants even longer – since 2013. Having only opened its doors in 2012, Paul Pairet’s experimental eatery has made a big splash in the global dining scene, and its 22-course ‘Avant-Garde’ tasting menu vows to “unite food with multi-sensory technology to create a fully immersive dining experience.” It will cost you up to $950, but does include wine pairings.

MICHELIN RATING: ***

68

March 2018

0

01

JAKA CITY FOCUS

Seque rest volorum aute velestio intem illibus es qui ut alit et, sita iuntur?

Writ ten by AUTHOR

ARTA JAKARTA IS NOT ONLY THE CENTRE FOR INDONESIA’S SIZEABLE STATE-OWNED ENTERPRISES, BUT SERVES AS AN INCUBATOR FOR MANY OF THE COUNTRY’S MOST EXCITING STARTUPS AND SMALL BUSINESSES Edited by OLIVIA MINNOCK

CITY FOCUS JAKARTA, THE CAPITAL of Indonesia, is situated on the northwest coast of Java, the most populous island in the world and home to around 57% of Indonesia’s total population. The city is not only the largest in Indonesia, but Southeast Asia as a whole.

The city’s a metro area is called Jabodetabek, which consists of four other cities. The name is derived from the first two letters of each of the cities involved: Jakarta, Bogor, Depok, Tangerang and Bekasi. While Jakarta itself has a population of over 10mn, that figure jumps to more than 30.21mn when the entire metro area is included.

This makes the Jabodetabek the second largest urban area in the world, after Tokyo.

72

March 2018

A GLOBAL ECONOMIC POWERHOUSE The Globalization and World Cities Research Network recognised Jakarta as an Alpha Global City in its 2016 report. The city’s growth is ranked fourth out of 200 of the world’s largest cities. It experienced more rapid growth than other Asian cities like Bangkok, Kuala Lumpur and Bejing.

73

CITY FOCUS

BIG BUSINESS IN JAKARTA According to Forbes’s 2017 ‘Global 2000’ list, six companies headquartered in Jakarta made the cut, including four finance-oriented firms state-owned lenders, Bank Negara Indonesia (BNI), Bank Mandiri and Bank Rakyat Indonesia - as well as Bank Central Asia, a private lender.

Cigarette manufacturer Gudang Garam and state-owned telecommunications business PT Telkom round out the six companies.

The nominal GDP of Jakarta was about $483.8bn as of 2016. This figure represents about 17.5% of the entire country’s GDP. The city’s economy is heavily reliant on manufacturing, trading, service, banking and financial sectors. Notable companies headquartered in Jakarta include:

74

March 2018

COMPANIES

PT PERTAMINA IS a stateowned gas and oil company, in 2012 PT Pertamina became the first company in Indonesia to become listed as a Fortune 500 company, and has maintained a position as a Fortune Global 500 business ever since.

The company reported a revenue of $36.5bn in 2016.

WEB

www.pertamina.com

75

76

March 2018

COMPANIES

CITY FOCUS

WEB

www.pln.co.id AGUNG PODOMORO GROUP is a real estate development company, the Agung Podomoro Group has undertaken projects in a number of sectors that span commercial and residential.

It posted revenues of more than $550mn in 2016. WEB www.agungpodomoroland.com

COMPANIES

PERUSAHAAN LISTRIK NEGARA is a state-owned corporation specialises in electricity generation and distribution. it was featured on the fortune global 500 list in both 2014 and 2015. it boasted an annual revenue of more than $3bn in 2016.Â

77

JAKARTA’S

CITY FOCUS

78

March 2018

INFRASTRUCTURE

Jakarta is a city that experienced phenomenal growth in a relatively short amount of time. As such, its transportation infrastructure has struggled to catch up to the needs of the population.

The development of its network of road systems was primarily focused on private vehicles. Based on 2015 figures, around 1.4mn people regularly commute to the centre of Jakarta from the city’s outskirts.

Of those, about 58% use motorcycles while fewer than 13% use cars. Less than a third of commuters used public transportation.

At present, the city is experiencing nearly doubledigit annual growth in the number of motorised vehicles that are being acquired by commuters.Â

79

CITY FOCUS

BUSINESSES OF EVERY SIZE THRIVE IN JAKARTA Though numerous major conglomerates and most of Indonesia’s state-owned businesses have their corporate offices in Jakarta, the city is also an incubator for startups, small and mid-sized businesses of all sorts. Industries as diverse as manufacturing, communication, construction, transportation and hospitality have experienced significant growth in recent years.

Let’s take a look at some prime examples.

80

March 2018

COMPANIES

BLIBLI IS AN e-commerce startup partially owned by PT Global Digital Niaga and Bank Central Asia, the country’s largest bank.

The company sets itself apart in the crowded e-commerce sector by providing a personalised shopping experience and access to expert teams that can deliver shopping information. The company was founded in 2010 and is known as Indonesia’s fist online shopping mall.

WEB

www.blibli.com

81

COMPANIES

CITY FOCUS

82

ALODOKTER IS AN internetbased health company with about 130 employees. Launched in 2016, the Alodokter app is already used by more than 12mn people every month. More than 250,000 questions from users are fielded by doctors each month, making Alodokter Southeast Asia’s number one digital health company. WEB

www.alodokter.com

March 2018

www.startupgrind.com/ jakarta/ WEB

COMPANIES

ENTREPRENEURS INTERESTED IN starting a small business in Jakarta can likely benefit from Startup Grind.

This global startup community has its Indonesian headquarters in Jakarta, and was developed to inspire, connect and educate entrepreneurs through networking events, fireside chats and more. The group is separated into “chapters”, and the Jakarta Chapter is led by Frans Yuwono, CEO of the Asia Commerce Network.

83

Andrea Wong, Chief Marketing & Customer Officer, AXA Hong Kong

Leading innovation in Hong Kong’s insurance market Written by Catherine Sturman Produced by James Pepper

AXA HONG KONG

Since its establishment in Hong Kong, AXA has built up long-term trust with customers and been named the number one insurance brand worldwide for the ninth consecutive year *

T

he world’s economy has witnessed exponential growth over the last decade. Population growth, longer lifespans, rising healthcare costs and increasingly digital lifestyles are all leading to the disruption of not only the protection available for consumers, but also how insurers will continue to play a key role in this evolving industry. Insurers have therefore looked to overhaul the traditional ways of working in a bid to remain ahead of the curve and better serve their customers.

Witnessing how the surge of new players continues to drive the launch of personalised solutions across Asia, AXA has also seen a number of non-insurance companies, such as

Tencent and Alibaba, look at entering this competitive space, demonstrating their potential for future growth.

“New digital entrants are starting to disrupt the insurance business with a relentless quest for simplicity and a focus on what truly matters to the customers. Traditionally, insurance has not led in the digital space but it is catching up quickly with other industries. At AXA, we are investing heavily in infrastructure, people and tools to transform the customer experience and modernise insurance on all fronts,” says AXA Hong Kong Chief Marketing & Customer Officer, Andrea Wong.

“In Asia, customers are really embracing a digital lifestyle, probably

*Source: Interbrand Best Global Brand 2017 (By Brand Value)

86

March 2018

TECHNOLOGY

Darrell Ryman, Chief Technology Officer, AXA Hong Kong

asia.businesschief.com

87

TECHNOLOGY

more so than you would see in the rest of the world,” observes AXA Hong Kong’s Chief Technology Officer Darrell Ryman. “Having spent 10 years in Mainland China, I witnessed how the country skipped the PC and went straight to mobile. We are committed to digitalising business deployment through technology and making insurance readily available across devices, anytime, anywhere.”

Making insurance simple and personal The advent of the digital age has changed the way people communicate

and consume. Customers are now well connected online and demand speedy and round-theclock services, making it extremely important for insurers to provide a much simpler and more personalised experience to their customers.

“Customer-first is our core value.

We consider the way our customers live today and tomorrow so that our products and services continue to be relevant and meaningful to them.

Moving from a product-led company to one which is more customercentric, we have significantly transformed to make connections

asia.businesschief.com

89

AXA HONG KONG

“In Asia, customers are really embracing a digital lifestyle, probably more so than you would see in the rest of the world” AXA Hong Kong’s Chief Technology Officer, Darrell Ryman

with customers simpler, easier and quicker. MyAXA is a modern online experience we specially designed for simplifying our interaction with customers,” explains Wong.

MyAXA is a 24/7 web and mobile app based digital service for AXA customers. Customers can view their Life and Employee Benefits (EB) policies with AXA Hong Kong on MyAXA, and are able to perform key online transactions such as SmartClaims (with just a simple photo snap), fund switching and searching for doctors using geo-locations.

In addition, a first-in-market service was launched in October 2017, called ‘e-Prescription’. MyAXA users can order prescribed medicine with just a photo of the prescription, then pay and pick up the medicine from a designated pharmacy, creating added convenience.

“In just 12 months, MyAXA had over 80,000 downloads, and since it was launched to our EB policyholders the number of active users is increasing at a promising rate with more downloads day after day,” Wong says.

Why is the best digital strategy a human one?

Š 2018 EYGM Limited. All Rights Reserved. EYG no. 00711-185Gbl. ED None.

ey.com/digital #BetterQuestions

AXA HONG KONG

“New digital entrants are starting to disrupt the insurance business with a relentless quest for simplicity and a focus on what truly matters to the customers” AXA Hong Kong’s Chief Marketing & Customer Officer, Andrea Wong

To offer a more personalised service, AXA also piloted brand new concepts in promoting personal wellness. “We introduced Xtra by AXA, which is a unique personal coaching mobile app that rewards users for living a healthy lifestyle. We are the first in the market to integrate artificial intelligence (AI) into an interactive digital chatbot named Alex, to provide tips on health and wellbeing for customers who are health-conscious,” adds Wong.

AXA has put in place a robust system to capture customer insights

92

March 2018

at different service touch points, such as when making a claim, calling hotlines, or buying a new product, as an ongoing effort to excel in customer service. The feedback collected has enabled the company to identify specific areas to improve and offer more personalised services to address customer needs.

Offering best-fit propositions for customers through big data AXA’s new direction is to become a partner to its customers, not simply paying them. “By looking at our services from a customer perspective,

TECHNOLOGY

it’s not about product, it’s about the experience we offer our customers,” says Ryman. “It’s not just about them buying a policy and us paying them for a claim, but about becoming more of a partner for them.”

AXA has a pool of data scientists and has already deployed big data technology to optimally match the right financial consultants to customers based on their profiles, deliver personalised offers and identify next most relevant products or services for its customers.

“Thanks to big data that enables automatic risk underwriting, we are introducing guaranteed offers for

AXA SERVES OVER ONE MILLION CUSTOMERS IN HONG KONG AND MACAU

asia.businesschief.com

93

AXA HONG KONG

online health insurance purchase.

Big data and analytics also help us to best-fit customers and propositions, including automating the provision of the next best protection and health offer for customers, and matching customers with the best financial consultants based on their profiles.”

“With data and analytics, we provide the answer before the question is even asked, freeing our customer’s minds from worry so that they can focus on what’s

The insurance industry is facing unprecedented opportunities and challenges in the digital era As your trusted business partner, Deloitte brings together insurance experts from strategy, operations, technology, actuarial, risk, tax and audit to help insurers stay ahead of the game by addressing complex issues with innovative solutions.

©2017. For information, contact Deloitte China

important to them,” adds Wong.

AXA Hong Kong received the ‘Big Data and Analytics’ award at the Asia Insurance Technology Awards 2017 for the second year in a row, the bronze award for ‘Best Use of Mobile’ at the Customer Experience Asia Excellence Awards, and Celent’s Model Insurer Asia Awards 2017 in the ‘Data & Analytics’ category – all testament to its success in enhancing the customer experience through strong investment in data and digital innovations.

TECHNOLOGY

AXA PRESENTS IN 64 COUNTRIES AND HAS 165,000 EMPLOYEES

asia.businesschief.com

95

AXA HONG KONG

“AXAiPro provides the financial consultants with timely data for a meaningful conversation and an instant underwriting result for the customer to buy on spot and obtain instant coverage” AXA Hong Kong’s Chief Technology Officer, Darrell Ryman

96

March 2018

Empowering distributors with digital “Technology helps us modernise our sales practices. We developed AXAiPro which benefits both our financial consultants and customers through the customer-centric buying experience leveraging on digital technology,” says Ryman.

AXAiPro is a powerful and fully integrated digital platform that empowers our financial consultants through increased mobility and improved productivity. The technology facilitates a paperless application, where only an iPad is used during the sales process. AXAiPro provides the financial consultants with timely data for a meaningful conversation and an instant underwriting result for the customer to buy on spot and obtain instant coverage.

It also works to perform essential verification requirements for Mainland Chinese customers via mobile devices connecting to the internet by leveraging on GPS technology. It brings great convenience to these customers so that they need not

complete the necessary procedures at a service centre in person. “We continue to evolve AXAiPro with innovative functions that improve the customer experience, such as online instant payment. It makes planning and dealing with AXA easier for both our financial consultants and our customers,� says Ryman.

AXAiPro platform also provides an interface where consultants can get the most relevant leads at

their fingertips after aggregating and analysing different big data sources including advertising, social media and websites.

Strengthening the infrastructure To cope with growth momentum, AXA has made significant investment in its digital capabilities, which includes the expansion of its Hong Kong IT team with an additional 50 specialists.

Supported by a single CRM

asia.businesschief.com

97

AXA HONG KONG

AXA HAS ADDED 50 NEW MEMBERS TO ITS IT TEAM IN 2018

98

March 2018

system and an onshore customer contact centre, this IT and digital investment will enable the business to be more agile and responsive to customer needs and further drive modernising insurance.

AXA is continuing to strengthen its technology backbone with a new architecture hosting a lake of applications to enable an integrated customer journey.

TECHNOLOGY

Safeguarding customer data Housing such vast volumes of customer data, AXA seeks to uphold its consistent, companywide data privacy policy, with the aim of obtaining international accreditation in the future.

“We are running an initiative called Quartile One, which is a security initiative based on the ISO 27001, 27002 and 27005 standards, with an aspiration to be in the top 25% of all companies globally in terms of security standards and practices,” notes Ryman.

“A Data Privacy Officer has also

been appointed to oversee the implementation of our data privacy policy with regular training for all employees handling customer data,” says Ryman. “In addition, we have put in place strong controls across all our IT systems that are in line with international best practice and standards, to secure our customer data.

“Cyber risk is firmly at the top of the international agenda as highprofile breaches raise fears that hack attacks and other security failures could endanger not only personal privacy but also the global economy.

asia.businesschief.com

99

AXA HONG KONG

“At AXA, we implement strict validation processes on all websites. All of them are required to obtain digital permits.”

Reinforcing its leadership position Digital transformation is in itself a moving target as technologies and customer expectations are changing rapidly. Continuously adapting and responding to these changes is a challenge.

“We address the challenge by focusing on an ‘agile’ approach to transformation and continuously investing in IT capabilities and innovative technology in order to sustain our leadership position in a competitive market,” says Ryman.

“We are striving to transform the customer experience, making insurance simpler, more relevant and more personal for all our customers.

Leveraging on new technology, we can better anticipate customers’ future needs so to provide the next best offerings,” says Wong.

Catering to the evolving needs of

100

March 2018

TECHNOLOGY

asia.businesschief.com

101

AXA HONG KONG

its customers, AXA continues to innovate and expand the product range across Life and Savings, Property and Casualty as well as Health and Protection so as to deliver the best products to satisfy each customer’s unique requirements.

Internally, AXA is promoting a fresh entrepreneurial culture among its employees. The new spirit motivates all employees to “run the company like your own�. Mindset change is a key success factor behind the transformation of insurance and the customer experience, and every employee must play a part.

With a long-term purpose of empowering its customers to live a better life, whilst remaining the modern insurance company of choice, both Ryman and Wong are vigilant and aware of the need to remain competitive and keep abreast of all developments within the insurance industry.

102

March 2018

TECHNOLOGY

“Customer-first is our core value.

We consider the way our customers live today and tomorrow so that our products and services continue to be relevant and meaningful to them” AXA Hong Kong’s Chief Marketing & Customer Officer, Andrea Wong

asia.businesschief.com

103

TRANSFORMING REINSURANCE THROUGH D I G I TA L H E A LT H PA R T N ER S H I P S Written by Catherine Sturman Produced by James Pepper

SCOR

Chief Executive Officer Craig Ford discusses how SCOR Global Life is working to transform its reinsurance by merging and investing in new solutions in Asia Pacific

R

eaching €14.8bn of gross written premium in 2017, SCOR is a global tier 1 reinsurer, offering life reinsurance, property and casualty reinsurance, with an exceptional asset management business. SCOR Global Life covers life biometric risks such as mortality, longevity and morbidity, both long and short-term.

Having joined SCOR Global Life in Asia Pacific in 2010, Chief Executive Officer Craig Ford has been behind the company’s growing innovative solutions, where the business remains committed to providing transformative ideas, insights and knowledge in order to further support and propel its insurance clients’ businesses forward.

Noting that consumers are

106

March 2018

no longer content with standard insurance products, services and procedures, SCOR continues to innovate its proposition (including products, underwriting, claims, risk and distribution solutions) in order to support its clients in giving its consumers increased ease of access, execution, visibility and control, through the adoption of sophisticated engagement processes, from start to finish.

“Customers want more than simply pay and be financially compensated when issues strike.

We want to enable our clients to provide consumer wellness and health support, along with engagement throughout the process. We want to help our clients access more

TECHNOLOGY

Craig Ford Chief Executive Officer Asia Pacific, SCOR Global Life Craig Ford, a dual UK and Australian citizen, holds a Bachelor’s degree in Accounting and Finance from the University of Bristol in the UK. He is a qualified member of the Institute of Chartered Accountants in England & Wales Prior to working at SCOR Global Life, Craig spent 14 years in various roles (Strategy, Finance & Planning, Distribution, Risk and Governance) within the Zurich Group. Around 10 years ago he relocated to Australia where he joined one of the major insurers in Strategy, IT & Wealth Management roles before joining RGA as Head of Business Development & Technical Pricing prior to joining SCOR. Craig joined SCOR Global Life as the Australia Chief Executive Officer in 2010 and held the position of Deputy CEO Asia-Pacific from 2013 until his promotion to CEO in Asia Pacific in December 2016 asia.businesschief.com

107

WELLNESS PROGRAMS DECREASE EMPLOYEE STRESS Wellness programs are now a quantifiable business tool as well as an employee benefit

garmin.com/health b2b-health@garmin.com

WEARABLES CHANGE THE INSURANCE AND CORPORATE WELLNESS BUSINESS Employers across APAC and EMEA are receiving data-demonstrated risk reduction and cost

information like movement, activity, sleep, stress, heartrate and heartrate variability which

savings from their wellness program, reinforcing with hard data, the decade long assumptions that

now through WellteQ can identify risk early, so preventative measures can be put in place before

wellness provides a business ROI. We can now prove it.

the risk becomes costly. Self-reported data has historically been a mainstay of designing and

Achieving these results is simple, employees receive a free or subsidized Garmin wearable and

measuring the impact of wellness programs, now it merely supports real world behavioral data provided by wearables

are coached through a personalized wellness journey via WellteQ’s smartphone app.

The results are available on demand for clients on a real-time dashboard, showcasing risk and cost hotspots.

The chart below demonstrates how participating users rated their stress before and after the WellteQ program.

There is a clear meaningful reduction in perceived stress at work (43% reduction), and at home (41% reduction) demonstrated by heart rate variability data and self-reported situational data leading to improved perceptions of energy, wellness and ultimately productivity.

Garmin wearables provide incredibly detailed

More importantly, user anonymity remains at the core of this experience, at all times the user remains anonymous removing complication from employers and anxiety from employees.

Forward thinking Insurance companies are now taking the lead from enterprise wellness by incorporating digital wellness data for smarter risk mitigation, product distribution and customer retention. Findings are demonstrating a higher ROI than from traditional methods.

The underwriting process becomes easier and faster and much more precise. Early disease risk detection activates earlier prevention which saves time, money and heartache for everyone.

“THESE PARTNERS HELP US PROVIDE INFORMATION THAT SUPPORTS THIS ONGOING DIALOGUE BETWEEN OUR CLIENTS AND THEIR END CUSTOMERS” CRAIG FORD CEO Asia Pacific, SCOR Global Life

FusionEx

TECHNOLOGY

consumers and help them to lead longer and healthier lives,” Ford says.

This shift in demand has led the business to create new distribution solutions, service and product propositions to extend the clients’ reach through the implementation of digital tools across Asia Pacific, particularly in China.

“In markets such as China, the new generation of consumers have leapfrogged the use of email and conducts their communication and transactions through interactive channels such as WeChat. They therefore want the ability to receive offers and execute transactions through mobile devices and similar platforms,” he says. “It required us to provide slicker propositions and engagement tools that consumers can understand and respond to readily.”

Consumers’ demand to receive continual, real-time information and advice about their policies and health links with Ford’s belief that ‘health is the new wealth’ within the insurance business, which is integral to SCOR Global Life’s solutions.

Growth of health and wellness

2,801

Number of employees at SCOR

Drawing from an ecosystem of expertise, a number of partnerships have helped drive SCOR Global Life’s solution development and ambition to help anticipate customer issues, even before they arise. Its decision to become the sole global distributor of French wellness company Umanlife’s health platform has seen its clients gain the ability to access personalised lifestyle information about their own health and wellness, and follow bespoke programmes designed for their specific circumstances.

Merging external expertise with SCOR Global Life’s in-house

asia.businesschief.com

111

GAINING INSIGHT & FORESIGHT - BEYOND SIGHT Fusionex GIANT unleashes the enormous potential of data analytics to help you discover new business opportunities even before they happen. As a leading provider of Big Data Analytics, we make it our business to help you gain crucial actionable insights for your business.

www.fusionex-international.com

TECHNOLOGY

FACT SCOR Global Life is the sole global distributor of French wellness company Umanlife’s health platform experiences and capabilities, the company has completely overhauled its traditional focus within insurance, where it now encompasses a complete personalised, userfocused, digital interactive platform which gives the user greater control over the management of their own health and wellbeing.

“These partners help us provide information that supports this ongoing dialogue between our clients and their end customers,” notes Ford. “We help our clients give their customers what they want and help anticipate and address their future demands.

“An example that demonstrates our focus is our development of a Biological Age Model (BAM), which is

combined with a wellness platform.

We have three partners - Garmin, Vivametrica, and WellteQ - and we provide health evaluation data, the use of wearables, and bespoke wellness programmes for individual customers. This is personalised biological age pricing with continuous positive engagement between the insurers and their customers. The objective is to motivate consumers through customised, individual information to live a healthier lifestyle based on the data they provide.

“It’s a great combination of the use of wearables to generate data to combine with other insights to provide individually customised and updated wellness programmes help change and add value to people’s lives.”

Technological disruption With the need to create a superior customer experience, SCOR Global Life has also helped the insurance industry overhaul its traditional underwriting services.

Historically this has been a timeconsuming, invasive process,

asia.businesschief.com

113

SCOR

involving questionnaires and blood/ fluid samples. SCOR has therefore listened to the feedback received from its clients to make the process increasingly resilient and seamless.

Utilising publicly available information, such as records of pharmaceutical usage, driving records, criminal records and basic demographic information, SCOR’s underwriting platform, named Velogica, has now gained the ability to automate underwriting and risk assessment in up to 85% of policy applications.

“Where we get a match, we can typically form a risk assessment in

about 90 seconds, removing the needs for customers to go through this historic, cumbersome process.

In fact, the risk assessment using our underwriting algorithm is more accurate in many cases than through traditional methods,” notes Ford.

“It was designed and built to satisfy the requirements of today’s users – be they consumer, adviser or underwriter, and is a much more effective way of profiling customers for our clients. It provides a much better customer experience through all of the pathways to purchase.”

However, differences between the US and other markets mean

FACT SCOR Global Life’s subsidiary ReMark has established Digital Marketing Lab, ezTakaful in Malaysia, which looks at areas such as accelerated underwriting and alternative distribution models

114

March 2018

TECHNOLOGY

VIDEO: Denis Kessler - 2017 SCOR’s Activity & CSR Report

appropriate adaptation is required.

“At the moment we use a simple rule set, where we ask reflective questions through an e-underwriting system, which asks clients minimum questions and only goes into more detail where further information is needed,” says Ford.

“Having built the algorithms, we now have the capability to better profile the end customers limited only by an individual’s countries’

governance around what data can and cannot be used. We are mindful of the data requirements prevalent in each country. There are complex rules about what information can be accessed and used, which is why we are customising the use of our algorithms to reflect each market’s requirements.”

Additionally, SCOR Global Life encrypts all client data, adhering to the highest levels of data protection.

asia.businesschief.com

115

SCOR

Forward thinking

Agility for success

Collaborative partnership

TECHNOLOGY

Text mining of claim processes is predominantly those which remain another area where SCOR Global unencumbered by legacy systems Life is partnering with clients to bring and short-term shareholder demands. solutions to meet the demands of Additionally, the company also today’s consumer. “For the end partners with other ambitious life customers, claiming can be perceived insurance companies, as well as long drawn-out process with InsurTech entrepreneurs who can uncertain outcomes. For bring a different perspective. insurers, the process can “We are partnering with be cumbersome and US-based Plug and resource intensive.

Play Tech Centre, a By leveraging global technology machine accelerator learning and for startups BILLION Gross Written text mining and investors, Premiums (2017) techniques, SCOR which has given us Global Life is able to access to a number provide solutions that of potential start-ups and not only better serve end other operations,” observes customers, but also support Ford. “The partnership will enable insurers in delivering greater SCOR Global Life and our subsidiary efficiency and insights into their ReMark to look at the long-term claims experience which in turn drives potential of health-tech startups. better propositions,” explains Ford.

“Through a review process, we look at whether there is likely Strength in numbers to be alignment of philosophy To further its health and wellness and mutual benefits and a clear focus, SCOR Global Life engaged focus on helping our clients better with startups at an early stage, serve their customers, in terms of

€14.8

asia.businesschief.com

117

SCOR

fulfilling their health and wellness aspirations,” adds Ford.

Partnering with SMEs, health and wellness companies and startups has seen ReMark establish Digital Marketing Lab, ezTakaful in Malaysia, which looks at areas such as accelerated underwriting and alternative distribution models.

“ReMark is an expert business in digital distribution that has a global presence. It conducts global customer surveys and uses feedback from these surveys to adapt various distribution methods and create omnichannel solutions.

It is also used to export and import ideas to other markets where they’re present,” says Ford.

“They’ve successfully trialled and launched a number of things, such as taking the experience in more traditional media like TV shopping channel and condensed it into a digital format of 20-second advertisements over social media.

These have been much more effective at capturing people’s attention in a ‘Digital First’ era.”

118

March 2018

“WE ARE MINDFUL OF THE DATA REQUIREMENTS PREVALENT IN EACH COUNTRY. THERE ARE COMPLEX RULES ABOUT WHAT INFORMATION CAN BE ACCESSED AND USED, WHICH IS WHY WE ARE CUSTOMISING USE OF OUR ALGORITHMS TO REFLECT EACH MARKET’S REQUIREMENTS” CRAIG FORD CEO Asia Pacific, SCOR Global Life

Product development SCOR Global Life’s focus on the development of bespoke products has also seen the company partner with a number of technology providers to deliver exceptional solutions to its clients, in line with the preventive healthcare trends.

“We have partnered with an artificial intelligence business and a hospital in Asia to take the hospital’s data and build a new database which will

TECHNOLOGY

improve the development of products and services for the management of back and spine issues,” explains Ford.

“This database will greatly help the hospital in the treatment of patients. We can use this to work with insurers to provide product and service to their customers. The development of such a database and the ability to create products therefore becomes beneficial to the hospital patients and consumers.

“Another good example is in the preventive care area. We’re in active partnership with an advanced medical testing company to our clients with a specific test for pregnant women that is triggered first by an abnormal result,” adds Ford. “It’s a non-invasive way to look at the health of the baby, in a way that replaces some of the older techniques which were not as accurate, and carried increased risk to both the foetus and to the mother.

VIDEO: Reinsurance is a Knowledge Industry

asia.businesschief.com

119

SCOR

“We see this as a hugely beneficial proposition for pregnant mothers, and for the advanced medical testing company it also gives them continued access to data to continuously improve and refine their testing.

We also use advanced medical testing to more accurately focus treatment when illness strikes as well as helping identify those with

120

March 2018

pre-disposition to disorders to make lifestyle changes and to minimise the likelihood of occurrence.�

Emerging trends When asked about the trends to look out in the sector, Ford concludes: “The merger of healthcare and insurance is a trend which will continually develop and grow across

TECHNOLOGY

the health and wellness sector.

The alignment between insurance companies and wellness and health promotion companies will continue.

“Our aim is to promote health and wellbeing. Life is precious, so if we can make protection and peace of mind available and affordable to new and existing customers, we can promote health and wellbeing so that

people can ultimately enjoy longer and happier lives – that’s our purpose and something around which we, as a life reinsurer, are both aligned and committed to achieving.”

asia.businesschief.com

121

Nokia’s ‘conscious’ factory of the futur

Written by Laura Mullan Produced by Charlotte Clarke

re

123

NOKIA

Unveiling its groundbreaking ‘conscious factory,’ telecoms giant Nokia is truly ready for the fast-changing manufacturing needs of the future

S

everal years ago, Nokia set itself an ambitious objective: to envision and create the ‘factory of the future’. Fastforward to today and the telecoms giant has made this distant future a reality with its state-of-the-art concept – ‘the conscious factory’.

With every industrial revolution, factories have evolved to create something unlike anything that has come before. Now, in the midst of Industry 4.0, analytics, robotics, and 3D printing are just some of the emerging trends that are redefining the manufacturing space at large.

By harnessing the potential of these technological trends, Nokia’s

124

March 2018

S U P P LY C H A I N

asia.businesschief.com

125

42Q is Proud to be a Solution Provider for Nokia’s Conscious Factory and Factory in a Box

42Q – Cloud solution for real time factory control and global supply chain visibility Proven solution, deployed in over 60 factories in 15 countries worldwide

www.42-q.com

Sanmina – Advanced Technology and Global Supply Chain Solutions for Nokia

Sanmina Corporation designs and produces the highest technology products we use everyday, including advanced optical and telecommunications products, cloud storage, smart and connected devices. Nokia and other Fortune 100 companies depend on Sanmina for end to end, global supply chain and manufacturing solutions.

NOKIA

“It’s a complete game changer” Johannes Giloth (left), Senior Vice President of Global Operations and Chief Procurement Officer at Nokia

128

March 2018

S U P P LY C H A I N

Conscious Supply Network is ushering in a new era of supply chain transformation and battening down the hatches for Supply Chain 4.0.

Nokia’s vision was a simple one: to transform its factories into ‘the conscious factory’ – an agile and intelligent manufacturing service that is fully-automated, green, self-learning, and able to predict and prevent supply flexibly.

To make this hi-tech network a reality, the Finnish giant zeroed in on four crucial areas: digitisation, analytics, robotics and transparency. It leveraged tools such as cloud computing, Internet of Things (IoT), analytics, machine learning, robotic process automation (RPA) as well as augmented and virtual reality. In doing so it has created an endto-end supply chain solution that is more visible, adaptable, and smarter than anything before.

A conscious supply network It has been a mammoth task for Nokia, but it is one which the team believes will revolutionise manufacturing forever.

“In former times, if you outsourced a factory it was like a black box,” explains Johannes Giloth, Senior Vice President of Global Operations and Chief Procurement Officer at Nokia. “You placed an order there and waited until the delivery arrived but, in between, you couldn’t see anything. With our conscious factory, I can see in real-time

asia.businesschief.com

129

EMPOWERING NEXT GENERATION MOBILE COMMUNICATION Created in 2015, Ampleon is shaped by 50 years of RF power leadership and is set to exploit the full potential of data and energy transfer in RF. Ampleon has more than 1,350 employees worldwide, dedicated to creating optimal value for customers. Its innovative, yet consistent portfolio offers products and solutions for a wide range of applications, such as mobile broadband infrastructure, radio & TV broadcasting, CO2 lasers & plasma, MRI, particle accelerators, radar & air-traffic control, non-cellular communications, RF cooking & defrosting, RF heating and plasma lighting.

Amplify the future | www.ampleon.com

Taco Zwemstra, Senior Vice President

Arttu Ollinaho, Global Key Account

and Chief Operating Officer: “With

Director: “By closely collaborating

our balanced mix of in-house and

with Nokia, the flexibility of the entire

external manufacturing, supported

supply chain is being significantly

by state-of-the-art planning

improved. This increased flexibility

and execution tools, Ampleon is

and an overall lead-time reduction

prepared to embark on the next

are needed to meet the volatile

journey towards greater customer collaboration and support.”

TRANSFORMING THE SUPPLY CHAIN FOR BETTER CUSTOMER EXPERIENCES

market requirements and to speed up new technology developments.”

Nokia is a leading customer in the Mobile Broadband business, purchasing high volumes of Ampleon’s Radio Frequency Power Amplifiers (RFPA) for 4G and 4.5G base stations.

Examples for 4G RFPA high volume parts:

Ampleon, being a young company with a long history in RF Power, has had the ideal opportunity to transform its supply base and supply chain operations. Following the carve-out from a large company, the establishment of an independent company created many challenges, but also many

BLM7G1822S-40PBG

BLC9G20XS-400AVT

opportunities which allowed us to improve the support for our customer base.

As Nokia’s business is moving towards 5G, many business opportunities are linked to the multitude of new 5G

First and foremost is the ability to transform our previous

frequency bands. These 5G products require complete new

in-house manufacturing to a balanced combination of in-

RFPA technologies for various power levels and frequency

house and external manufacturing. Partnering with leading companies, leveraging their strengths with our needs,

bands. At the same time, the speed of development and technology creation in the entire supply chain is challenged:

offered us to the chance to optimize our supply chain. Our

the even more complex new products must be available way

own in-house back-end manufacturing gives us the flexibility

faster than before. This requires high attention to the overall

and quality to launch key technologies which help to boost

lead- and cycle times within the global supply chain. The way

our business.

towards a massive MIMO (Multiple Input Multiple Output) type of Base Stations in 5G requires scalability in volume

Secondly, we have had the opportunity to redefine our

capacity and an adjustable supply chain more flexible than

IT landscape and advance our business processes and

ever before. This can only be achieved when supplier and

associated tooling. Choosing state-of-the-art business

customer are partnering for success.

planning and supply tooling will enable Ampleon to become even more flexible with the aim to further grow our business with our key customers. Ampleon has embraced “Partnering for Success” as one of the key business drivers towards future growth. Together with our customers, suppliers and R&D partners, and with a next step in supply chain excellence and system support, we are well on our way.

Follow us:

NOKIA

what happens in each factory and I can optimise the process.

“It’s a complete game changer.”

With over 30 factories worldwide, Nokia’s supply chain is a far-reaching one spanning several continents.

However, the Finnish company only owns three of these factories with the rest being outsourced. Instead of focusing on owning bricks-andmortar, Nokia is concentrating on owning the information, the data, and knowledge behind it. By understanding how the industry is connected together, the

132

March 2018

organisation is creating a conscious supply network, an end-to-end ecosystem built on end-to-end understanding and knowledge.

“Only three of our factories are owned by Nokia because we have not been focusing on manufacturing, we have been focusing on managing a manufacturing network,” observes Giloth. “I only can manage this network if I have data. I don’t care about owning the equipment, but I care about owning the data.

“We are putting thousands of sensors in our factories and

S U P P LY C H A I N

Nokia has more than 30 factories around the world

connecting all our manufacturing and logistics assets together so that they can talk to each other,” he continues.

“With that, we are creating what we call a ‘conscious factory’, where all transactions are visible in real-time in a controlled centre. With that, you can optimise throughput, inventories, quality, and you can apply machine learning to it. It helps you automate the entire process, it helps you ensure quality, it helps you to reduce cost in inventories, and it helps you be more flexible in adapting your supply chain. But having one conscious

1865

Year founded

asia.businesschief.com

133

Solutions for me.

“False calls can be avoided!

I trust solutions from Viscom and invest in sustainable quality assurance.“

With its world-class inspection systems, Viscom is always the partner of choice when your electronic assemblies require optimal quality assurance. The complete range of optical and X-ray inspection guarantees extremely fast and unequaled inspection coverage: even concealed components, hidden solder joints, and material defects can be accurately tested.

Long-term experience as a premium developer and supplier of advanced technologies is the basis of Viscom’s solutions, which ensures continuous process optimization.

3D SPI

3D AOI

3D AXI

3D MXI

CCI

Bond

www.viscom.com

FULL DEFECT COVERAGE In 3D inspection for the electronics industry, Viscom ranks among the worldwide market leaders and can point to over 30 years’ experience in industrial image processing. All products are “Made in Germany” and are manufactured at our headquarters in Germany. Viscom has subsidiaries in France, Singapore, the USA, China and Tunisia.

The company also has numerous regional support and service centers in order to keep the systems at the peak of performance in actual use, even long after the purchase by update and upgrade offers.

micro-computed tomography. The offer also includes solutions for conformal coatings and wire bond inspection. Thus, all inspection gates are covered by a single source.

The portfolio comprises automatic optical inspection, solder paste inspection as well as automatic and manual X-ray systems with

For contact and detailed information write to info@viscom.com or visit www.viscom.com.

Suppliers to the automotive industry make up the largest customer group. Viscom also has well-known purchasers in other industrial branches such as consumer electronics, aviation and aerospace, medical technology and industrial electronics.

The quality of PCBs plays a crucial role in the implementation of functions and performance of electronic products. Thus, Viscom´s PCB inspection is an essential element in any electronics manufacturing process.

NOKIA

factory is just the start of it. We want to create an entire network.”

Presenting the ‘factory in a box’ This is just the beginning of Nokia’s vision for the future; it is also resigning the idea of large manufacturing locations to the past. Unveiling its ‘factory in a box’, Nokia is anticipating the fastchanging manufacturing needs of the future, by creating a conscious ‘Lego’ building block factory.

Offering unparalleled flexibility and agility, this factory in a box aims to revolutionise today’s factory floor. It can be transported to the location, build the necessary volume for ‘country of origin’ requirements and can be moved again as needed.

Agility is a factor which can make or break a company, especially in the telecoms industry, and so the factory in a box could be instrumental as it allows product prototypes to be quickly created, tested and fixed if necessary. What’s more, if a site is hit by a natural disaster, critical customer orders can still be achieved

136

March 2018

“Having one conscious factory is just the start of it. We want to create an entire network” Johannes Giloth, Senior Vice President of Global Operations and Chief Procurement Officer at Nokia

quickly with a portable factory.

“It is a step towards a modular supply chain factory,” says Giloth. “A big problem in the manufacturing space is that R&D and manufacturing should be close together because then you have an immediate feedback loop.

“Every time I have a factory request, whether it’s in Nigeria or elsewhere, I cannot create a factory there and demolish it after a year.

With the factory in a box, you can ship that modular container there, produce

S U P P LY C H A I N

asia.businesschief.com

137

The future of intelligent productivity MY700 - The ultimate in high-speed jet printing and jet dispensing The future of electronics production belongs to those who can handle any solder paste or fluid deposit with absolute precision and unmatched speed. Part of the new MYPro series, the MY700 Jet Printer and Jet Dispenser combines solder paste jet printing with jet dispensing of adhesives, UV materials, epoxies and more – with micrometer precision and at speeds of more than one million dots per hour. Thanks to a combination of intelligent software and revolutionary jet-printing technology, you can accelerate your production with on the-spot revisions, 3D mounting, and perfect quality solder joints for both rigid and flexible boards. Simply put, it’s the smartest way to boost quality and utilization across a vast range of challenging applications.

Whatever your ambitions, the future is already here. In fact, it’s just in time.

S U P P LY C H A I N

Number of employees at Nokia the product and when it’s ready for mass production, you go elsewhere.”

A global company with a local focus “This will not only transform the supply chain landscape at large, it will also create opportunities for unique regional players,” explains Bo Jensen, Head of Delivery Operations Asia Pacific & Japan at Nokia.

“If we look at it from a local perspective, it also allows us to adapt to local requirements, so this would be advantageous for regions such as Indonesia, for instance, where there’s a lot of discussion about local content and requirements. It creates a lot of flexibility and it also provokes our customers to take a bigger step,” he comments.

Sitting in Nokia’s gleaming regional office in Singapore, Giloth and Jensen passionately bounce back-and-forth as they talk about the latest exhibitions where they will showcase this ground-breaking concept. Sitting in the epicentre of the bustling business district, Nokia

has firmly cemented itself as a major player in the manufacturing space.

The ‘conscious’ factory may have seemed futuristic but it is possible - and Nokia made it happen.

However, this state-of-the-art concept didn’t come about in an instant. It is the result of over a decade’s work, and it is just one step in what has been a complete rootand-branch transformation of Nokia.

A high-level supply chain transformation On this journey, the organisation faced three successive challenges that created what Giloth called an ‘existential moment’ for Nokia – one which would bring about one of the biggest supply chain transformations in the industry. In the past two years, Nokia jumped from 101st to 15th in Gartner’s Top 25 Supply Chain ranking, an extraordinary turnaround that the research firm hailed as ‘triumphant.’ It has been a lengthy process for both the company and its people but Nokia is keen to keep up this momentum.

asia.businesschief.com

139

NOKIA

“This supply chain transformation has been a journey of around eight years,” Giloth says.

“We were undergoing external shocks to a certain extent. The first challenge was the battle of profitability that was driven by major Chinese competitors, and because of this we needed to cut costs and drive efficiency in the supply chain, and therefore one of the solutions was to create an integrated supply chain.

“We applied a lot of lean, Six Sigma, Kaizen continuous improvement efforts – the bread and butter of a good supply chain,” he adds.

“We renovated our organisational setup. We introduced KPIs and that was just the first step.”

The next challenge confronting Nokia was the pressure to be agile and responsive in a volatile market.

“The need for an agile supply chain became more and more paramount,” Giloth reflects.

“We invested a lot of time and also money in making our supply chain and demand planning, reacting faster to the market changes while not compromising on the lean setup. Then that created an integrated and demand-driven supply network.”

Customer-focused The third and perhaps most pressing priority? Customer centricity.

In many organisations, supply chains are seen

140

March 2018

Flex designs and builds Intelligent Products for a Connected World™ Bring your products to life with Flex Sketch-to-Scale solutions and unrivalled cross-industry expertise across multiple industries including – Automotive, Medical, Connected Living, Health & Fitness, IOT and Telecom, Enterprise & Cloud Infrastructure.

Visit us today at Flex.com

6201 America Center Drive San Jose, CA 95002 USA

NOKIA’S GLOBAL CORE SUPPLIER

Base station supporting devices

All dielectric filters

Multimode dialectric filters

RF Subsystem products

To provide the global communications equipment manufacturers with base station RF core modules.

• 1/3 of China’s 4G TD-LTE network filter market share • Having the strongest RF R&D team within the industry and the design experience in more than 1000 types of filters • Integration supply chain from development to delivery, mechanical processing, electroplating, spraying, commissioning, etc. and rapid response • Annual delivery capacity of more than 1 million wireless communication modules.

en.grentech.com.cn

S U P P LY C H A I N

“We used to be in the trenches of the back office but now we’re more involved from the beginning of the opportunity in order to create the best possible customer experience” Johannes Giloth, Senior Vice President of Global Operations and Chief Procurement Officer at Nokia

as a back-end function, but at Nokia, that notion is being flipped on its head. Giloth and Jensen believe that ‘creating the technology to connect the world’ is more than just a tagline that people associate with the telecoms company – it is a core value that should be interwoven through all aspects of Nokia, including its supply chain.

“Our market is diversifying hugely,” observes Jensen. “We have new customers, new segments, and therefore it’s critical that we are more customer-specific and more consumer-driven. In all aspects, user experience is really influencing our behaviour.

“Interestingly, we’re also seeing that by making our supply chain more customer-centric, we can grow our top line,” he continues. “We are having more strategic engagement with our customers and more what we call ‘stickiness’. This is significant because the more we are in, the more we can help them, and the more likely it is that we can build on this.

“It’s also about building a company

asia.businesschief.com

143

NOKIA

mentality in the organisation that shows we are an important part of what the customer is seeing in their daily life. We used to be in the trenches of the back office but now we’re more involved from the beginning of the opportunity in order to create the best possible customer experience.”

From top to bottom, customer needs are driving decisions at Nokia. But as each customer has their own unique demands, Giloth describes how the Finnish company has worked to understand and cluster its customers into segments so that it can deliver the things that really matter to them.

“Some customers want to have fast delivery, but they are not really price-sensitive,” Giloth says. “Others are looking at the price only, but the supply chain related KPIs are not that important. You need to really understand the different KPIs and what your customers want.

Our customers have completely different requirements in terms of throughput, reactiveness and on-time

144

March 2018

delivery so we need to understand the requests of the customer and segment our supply chain towards it.”

However, a customer segmented supply chain is just the start, Giloth says. “You also have to create customer intimacy, to really talk with your customers, and be exposed to the customers.

“Therefore, we have people like Bo in the regions being more and more connected with Nokia customers, rather than it being a very back-ended function. On top of that, you need to design your processes and your tools to make it easy for customers to use. Your product configuration can be cumbersome, or it can be Amazon-like. If the customer has a good feel of that user interface, that’s added value in itself.”

True digital transformation Often, ‘digitisation’ can seem like just another buzzword; a few syllables that have saturated business press releases worldwide. However, Nokia has proven it can be more than just on-trend lingo. Over the

Innovation starts with an idea.

But it takes collaboration to make it a reality. It takes experience to solve the challenges along the way.

And expertise to bring it to market faster. Creating the future is no small task.

Start with a partner who understands that.

CREATING THE FUTURE OF WIRELESS. TOGETHER.

FROM CONCEPT TO CREATION AT LIGHT SPEED #RadioVerse

analog.com/RADIOVERSE

NOKIA

146

March 2018

S U P P LY C H A I N

past several years, it has worked diligently to revamp its digital space but it doesn’t underestimate the challenges that lie ahead.

“Digitisation has become a buzzword because many global supply chains are far away from being truly digitalised,” says Giloth candidly. “The benefits and the potential have not been fully uncovered. At Nokia, we think that the next S-curve in achieving supply chain maturity is digitalisation.

“Nokia is a company of different legacies,” he continues. “It’s a combination of Nokia, Siemens, Alcatel-Lucent, Nortel, Motorola and Panasonic. All those companies we have merged with over the last few years have brought legacy systems and IT systems with it. It is unrealistic to have a monolithic IT system in a dynamic company like Nokia and so we are trying to bridge that by using technology like RPA and artificial intelligence, for example.”

asia.businesschief.com

147

MTEK 4ZERO SOLUTION A REAL TIME REALIZATION OF INDUSTRY 4.0

www.mtek.seTHE MTEK PROPOSITION TO THE ELECTRONIC INDUSTRY: Digital transformation in small parts assembly. Exact traceability & full quality assurance https://www.facebook.com/mtekconsultingab in every step. Collaborative robots solution. Right level of automation. www.mtek.se

Empowering You, So You Can Empower the World supply chain orchestration + innovation acceleration + engineering excellence + manufacturing agility + ...all under one roof Jabil is a premier global volume manufacturing partner oering innovation solutions for Nokia business lines. Jabil provides the full spectrum of JDM/ODM services for Telecom Wireless Networks, Wireline and Optical Networks.

Please visit Jabil.com to learn more

S U P P LY C H A I N

Sustaining supplier relationships Nokia is taking radical steps to accelerate its digital maturity and influence the shape of things to come, but it isn’t doing it alone.

Sustaining strong supplier relations has been key to unlocking Nokia’s supply chain transformation.

“We are working closely with companies to help us automate our processes on a daily basis,” Giloth says. “When it comes to that conscious factory environment, we have been working closely with a lot of sensor companies, small IoT startups, and cloud companies to

really get a deeper understanding.

When it comes to digitalising entire process chains, we have a lot of internal projects, but these are also supported by specialised consultants in those areas.

“As well as this, we have just consolidated our business process outsourcing and that strong focus has really helped us transform our auto management process,” adds Jensen. “We’re also using everyday tools like Office 365 and SharePoint Online to digitise the everyday life of the employee as much as possible.

We want to change the mindsets

asia.businesschief.com

149

NOKIA

of our people and encourage them to utilise the opportunities that are at our fingertips every day.”

Open collaboration ‘No man is an island’, and the same can often be said about business.

In this ever-evolving industry, the right collaboration could set you miles ahead of a competitor and perhaps no one understands this better than Nokia. As a result, the Finnish company has turned to the Open Ecosystem Network. Built on the principle of data democracy,

150

M a r c h 2Video: 018

this innovative platform has shaken up traditional business models and proposed a new way of working with different ecosystems and industries.

By connecting developers, startups, business incubators, universities, subject experts and entrepreneurs, the platform allows groups to share ideas and find the right people to develop them.

“It revolves around co-ideation and co-creation with our suppliers, but also collaboration within the company,” Giloth explains. “It’s a digital platform where you can post

Open Ecosystem Network

Equipment for Thermal Processes

mwc-door-2018.pdf

1

1/4/18

10:34 AM

Technology is our passion.

We develop thermal system solutions for every application – from efficient series production models to precisely fitting special systems. Our processes work with temperature ranges from –40 °C to +1200 °C. See our diverse product portfolio for yourself and benefit from our many years of experience in mechanical and plant engineering.

www.rehm-group.com

Visit us at Nepcon C hina Shanghai Apr 24 – 2 6, 2018 Booth # 1F20

C

M

Y

CM

MY

CY

CMY

K

Shaping the Future of Next Generation Systems Xilinx Solutions enable Smarter, Connected and Differentiated Systems, integrating the highest levels of software-based intelligence with hardware optimization and any-to-any connectivity.

“Getting that outsidein perspective was one of the key levers that helped us reach the next level�

Bo Jensen, Head of Delivery Operations Asia Pacific & Japan at Nokia.

S U P P LY C H A I N

your ideas, where you can have private rooms and where you can also have protected information in there, in case of sensitive intellectual property rights (IPR) discussions, for example. In this way, you can just accelerate the way you are dealing with your suppliers and prepare for the future. In the creation environment, it’s all about speed.”

An outside-in approach This sense of open collaboration is largely a result of what Jensen describes as an “outside-in”

approach. “Getting that outside-in perspective was one of the key levers that helped us reach the next level rather than being satisfied with what we’ve always been doing,” he says.

“After a very long time of trying to optimise looking at ourselves, we managed to turn it around.

We are working with a lot of exciting external companies in order to get a perspective on what others are doing.

“Instead of just looking at ourselves and polishing the chrome it’s about really asking ‘okay, what

asia.businesschief.com

153

NOKIA

“Customer segmentation is going to become more important with 5G, because today our major customers are the major telecoms operators of the world, the big internet players. In the future, it could be someone like BMW or Tencent.

It could be a bank or a hospital�

Johannes Giloth, Senior Vice President of Global Operations and Chief Procurement Officer at Nokia

154

March 2018

S U P P LY C H A I N

can we do substantially different?

How can we disrupt the sector?”

5G ready With the looming roll-out of 5G on the horizon, the telecoms industry is a thrilling yet unpredictable one to be in. Nokia has consistently been readying itself for 5G, chipping away at any obstacles in its path. Whilst Giloth and Jensen recognise the challenges it still poses, they feel that conscious supply network will propel the firm to new heights.

“The first generations of mobile phone technologies were incremental to each other, but 5G is changing everything,” notes Giloth. “It will open the communications sector to hundreds of other industries because it is vital for uses like autonomous driving and robotics.

“It’s a huge technology shift. We have invested heavily in R&D which has helped to set us apart, but you cannot do this just alone, you need to have partners. We have strategic partnerships that are helping us develop the necessary chips

and technologies. Without those industry ties it’s difficult, and so it takes a much more collaborative approach in many areas. You need to have long-lasting partnerships.

“The market is changing and our customers are changing, and so our supply chain needs to be changing too,” he continues. “Customer segmentation is going to become more important with 5G because today our major customers are the major telecoms operators of the world, the big internet players. In the future, it could be someone like BMW or Tencent. It could be a bank or a hospital. With that, you need to completely rethink your value chains.”

A true telecoms behemoth, Nokia has always left a lasting mark on the sector. The Finnish giant has come a long way since the humble, hardwearing phones it became infamous for and now, as Giloth and Jensen take the ‘conscious factory’ to the global stage, it seems that Nokia’s historic legacy is beginning a new chapter.

asia.businesschief.com

155