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FOREWORD
W
elcome to the December issue of Business Chief Asia!
Gracing the cover of this month’s edition of Business Chief Asia is ING Group. Paul Spronk, Head of ING Labs Singapore, discusses the ways in which he and his team are driving global trade innovation. One of the innovations pioneered by the company, with the potential to reduce the need for working capital, is machine learning powered SoptAI. “Within the industry, the accuracy of forecasting can sometimes be as low as 50%, the same as flipping a coin,” says Spronk. “With SoptAI, early proof points show that we are able to improve the accuracy with double digit figures on most of our client use cases, saving the industry millions of
In this month’s City Focus we take a look at Manila, a storied location that has weathered the push and pull of empires to flourish as the Philippines’ economic centre. Our Top 10 sees Business Chief Asia counting down the wealthiest women in the APAC region, looking along the way at how they came about their fortunes. Do you have a story to tell? If you would like to be featured in an upcoming issue of Business Chief Asia, get in touch at william.smith@bizclikmedia.com. Enjoy the issue! William Smith
dollars. The system has a proprietary automated model selection engine that helps us to build a scalable business.”
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14
CONTENTS
DREAM BIG, START SMALL
TRANSFORMING MARKETING IN A RAPIDLY CHANGING WORLD
32
42
52 60 68
Evolving the journey: putting your carbon footprint at the top of the agenda
76
CONTENTS
92 LF Logistics
106 Huhtamaki
118
130
Rhenus Logistics Indonesia
NTT Data Sapura Energy Berhad
142 TOTAL Solar
156 GSMA
164 Department of Education and Training Victoria
180 InLoop
208 Swinburne University of Technology
194 Johnson Winter & Slattery
234 Solis Renewable Energy Pty
000 222 C2FO C2FO
14
DECEMBER 2019
DREAM BIG, START SMALL WRITTEN BY
AMBER DONOVAN-STEVENS PRODUCED BY
NATHAN HOLMES
a si a .busi ne ssc h ief. com
15
ING
Paul Spronk, Head of ING Labs Singapore, explains how the bank is working closely with startups and partners to innovate for its clients in an ever-changing landscape
I
NG Wholesale Banking has innovation labs in Amsterdam, London and Singapore. Paul Spronk heads ING Labs Singapore,
having held this position since 2018. Prior to this, Spronk worked for fintech payments com16
pany Payconiq, which originated in ING’s Chief Innovation Office in Amsterdam – he later joined ING’s Wholesale Bank and helped to set up its global innovation team. Today, from the city-state of Singapore, Spronk leads his team to drive innovation in the global trade ecosystem. His focus on different value spaces derives from where the bank traditionally has a strong footprint. For example, ING Labs Singapore is ideally located in a technologically advanced trading hub of Singapore, hence it is focused on the trade value space, covering the entire ecosystem of goods that are traded globally and the adjacent network of services and financial flows. This sector expertise and leverage on innovation enables ING to play a role in improving industry efficiency and addressing structural challenges. DECEMBER 2019
17
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ING
“ We are the ideal partner to help startups get off the ground: our wide industry knowledge, a large client base, deep industry knowledge, capital – all from a trusted global brand” — Paul Spronk, Head of ING Labs Singapore
18
with open architecture and governance structures that enable the bank to create value-added products and services clients. • The roll-out of PACE, INGs innovation methodology that combines a lean startup, and agile way of working with design thinking. It offers tools that enable the bank to develop relevant solutions to internal and external problems.
IMPROVING FORECASTING BEYOND A COIN FLIP With advances in new technologies
According to Spronk, the team has
such as AI and machine learning it has
a three-pillar strategy and works on:
become possible to do things that
• G reenfield ventures that create
were previously hard for the industry.
long-term impact for ING and its
For example, Spronk shares that the
clients. These ventures and ini-
Singapore lab has developed a software
tiatives can go beyond banking
venture called SoptAI, an AUTO-ML
business models in addressing client
powered demand and cash flow fore-
needs as the global trade ecosys-
casting system that optimises supply
tem evolves.
chain operations and financing.
• Venture partnerships with a clear
“Within the industry, the accuracy of
client-driven platform strategy in
forecasting can sometimes be as low
mind. ING invests in partnerships
as 50%, the same as flipping
with startup, scale-up and corporate
a coin,” he says, adding that “with SoptAI,
partners, with the aim of developing
early proof points show that we are able
multi-sided business ties and models
to improve the accuracy with double digit
DECEMBER 2019
CLICK TO WATCH : ‘ING ASIA CORPORATE VIDEO’ 19 figures on most of our client use cases,
contributor to Singapore’s economy.
saving the industry millions of dollars.
Within this sector, ING Labs Singapore
The system has a proprietary automated
is building a venture called Kapsool.
model selection engine that helps us to
“This is essentially a digital agency
build a scalable business.”
workflow platform in the marine port
SoptAI could potentially lower the
ecosystem. Its goal is to reach an
need for working capital, demonstrat-
efficiency level matched to that of air-
ing ING’s commitment to truly helping
ports,” says Spronk.
its clients to stay a step ahead, even
He explains how such greenfield
at the cost of traditional banking prod-
ventures begin development, with
ucts. For the bank, such ventures also
long-term impact in mind. “Now, before
generate new non-interest income
you start building, if you’re within our
revenues, which are particularly impor-
lab and building a venture, we encour-
tant in a low interest environment.
age people to start with a problem in
The shipping industry is a significant
mind; is this problem real? How big a si a .busi ne ssc h ief. com
ING
CLICK TO WATCH : ‘SOPTAI’ 22
“ We are willing to disrupt ourselves from time to time all with the aim to help our clients be successful” — Paul Spronk, Head of ING Labs Singapore
is it for our clients and the industry if it can be solved? If there is enough room for impact we like to quickly build an iterate on a solution and we do that with trusted development shops and partners to help design and build the product. This is how we discovered Ming Labs.” Ming Labs offers both design and software development services and has a strong sense of customercentricity across its teams. “The people over at Ming Labs are team players,” Spronk states. “If you walk into our office,
DECEMBER 2019
you’ll find at any given day about two
regulatory pressure and the need for
to five people from them working with
ever better Know Your Customer
us, and I think it would not have been
(KYC) processes, ING is moving to
possible to build Kapsool as quickly
meet this demand head-on by creat-
without them.” Spronk emphasises
ing a module called Blacksmith. “This
that, as a venture moves from ideation
will help the bank perform KYC more
to market-fit state, flexibility is para-
easily while still maintaining the qual-
mount when working with vendors and
ity of the due diligence,” says Spronk.
development partners. “Ming Labs was
To assist with the creation of a
aligned with this understanding and
minimum viable product, ING is col-
has been key to this venture,” he says.
laborating with long-time partner
Against a backdrop of mounting
Synechron, which Spronk confirms is 23
E XE CU T I VE PRO FI LE
Paul Spronk Paul Spronk heads the Asian innovation activities for ING Wholesale Banking out of Singapore and is responsible for origination, validation and scaling of INGs innovative ventures across ING Wholesale Banking’s network. Implementation of ING’s innovation method, PACE, in wholesale banking and developing external partnerships with fintech companies, industry partners and government agencies in the region are among the other activities under his supervision. He also acts as APAC liaison for all of ING’s innovation capabilities in other regions. Paul has a background as an entrepreneur in digital retail services, has guided multiple innovation projects across various WB business lines and is a real technology enthusiast. He studied European law in Groningen and Budapest and holds an LLM in international & EU law from the University of Amsterdam.
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ING
26
DECEMBER 2019
27
“doing an excellent job”, as the bank
everyone within the organisation speak
works towards taking Blacksmith
the same language when talking about
to market.
innovation,” he explains.
INNOVATION: BUILDING THE NUTS AND BOLTS
HAND IN GLOVE: FINDING THE RIGHT PARTNER
At ING Labs Singapore, Spronk and his
Spronk shares the bank’s perspec-
team supports the roll-out of PACE,
tive when it comes to partnerships:
a proprietary innovation methodology
“ING understands that it cannot do
developed by the bank. “PACE com-
everything itself and so we are always
bines the attributes of a lean startup
looking for partners to assist us on
with agile working, design thinking
this journey, whether they are start-
and customer-centric innovation, all
ups, scale-ups, or corporate partners.”
neatly fitted into a framework to make
When asked what ING looks for in a a si a .busi ne ssc h ief. com
ING
C O M PA N Y FACT S
How does ING innovate for its clients? Spronk explains: “We identify a problem and then either build a venture ourselves that can become a new business unit, a standalone venture or a joint venture, or we look for partnerships with companies that have already found an interesting solution. 28
In order to source the most interesting problem statements, ING hosts ideation sessions with clients, government agencies and employees alike. We ensure that the client is involved from the earliest stages so that the innovation is truly useful to them.�
DECEMBER 2019
partner, he shares his belief that ideal partnerships are strategic and not merely for financial return, noting that “we look for companies with the technological capabilities to help us and our clients to stay relevant in the future.’’ He cites Silicon Valley-based fintech startup, Flowcast, as an example of an ideal partner. The firm specialises in smart credit decisioning through its credit analysis capabilities and machine learning-based algorithms. “Some of our larger wholesale clients can also benefit from these enhanced credit algorithms within their business and when these are optimised then the need for working capital, which is traditionally something that banks provide, is reduced. For us this is not a problem as we like to put the client’s interest above all and believe this will make them see us as a trusted partner for the future,” Spronk notes. Flowcast’s CEO Ken So is optimistic about the impact of this venture, where the technology used will make credit available to the underserved. The firm’s platform also allows organisations to accurately use non-traditional data sources to predict risks. So adds: “We a si a .busi ne ssc h ief. com
29
ING
“ We don’t want vendors to build partnerships just to solve our own problems, we want to build partnerships in order to combat industry issues and help solve some of the industry’s largest problems” 30
— Paul Spronk, Head of ING Labs Singapore
1991
Year founded
$19bn Revenue in US dollars
50,000+ Number of employees
believe that it won’t be long before every lending decision will be driven by AI in order for lenders to stay competi-
great potential that cross his radar are
tive. ING understands the impact that
referred to the appropriate regional lab.
AI will have on credit and reinvents
When working with startups, Spronk
its credit decision process. We look
and his team have much to offer.
forward to expanding our partnership
“Naturally it’s about providing mutual
with ING.”
value,” he explains. “We are an ideal
This is a perspective that Spronk
partner in assisting startups in get-
shares, noting that “we are also willing
ting off the ground thanks to our wide
to disrupt ourselves with the aim of
industry knowledge, a large client base,
helping our clients to be successful.”
deep industry knowledge and capital,
This isn’t limited to Spronk’s work in
all from a trusted global brand. These
Asia. He notes that businesses with
attributes are integral to startups
DECEMBER 2019
31
looking to upscale, as having the
AI and ML landscapes,” he says. “The
backing of a larger company makes
readiness and availability of data
obtaining trust from clients and
increasing over the years is going to
capital easier for a startup.”
change a lot. We want to make our own contribution and help our clients
DREAM BIG AND START SMALL
with that transformation to ensure
As Spronk and his team look ahead, it
that we, as a bank, are still an impor-
is clear that they show no sign of break-
tant, innovative and relevant player
ing momentum. “The industry continues
in the future.”
to digitise as it has done for the last decade and more technology driven opportunities are opening in the DLT, a si a .busi ne ssc h ief. com
LEADERSHIP
32
TRANSFORMING MARKETING IN A RAPIDLY CHANGING WORLD Justin Peyton, Chief Transformation & Strategy Officer APAC at Wunderman Thompson, discusses marketing transformation in the region and beyond WRITTEN BY
DECEMBER 2019
WILLIAM SMITH
33
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LEADERSHIP
W
underman Thompson is a global marketing and advertising agency, formed recently from the merger of advertising
company J Walter Thompson and marketing firm
Wunderman. Justin Peyton is Chief Transformation & Strategy Officer for the Asia Pacific (APAC) region, having joined the company in May. It’s an industry and a role that requires skills developed over the course of Peyton’s career. “I started off in hard finance, and learned a lot about quantitative 34
decision-making,” he says. “Then I worked for a while in film production and post production services, where I learned a lot about storytelling and understanding the emotional link that you need to build with people in order for them to relate to a story.” Peyton has a similar perspective on the merger, the possibilities of which attracted him to his current role. “J Walter Thompson always had permission to talk about brands at the highest level and to further the relationship that brands have with consumers,” he says. “Wunderman had the technology and data skills to translate brands’ values into services that make a real difference in a consumer’s life. The combination of the two offers the ability to think end-to-end, delivering both business value to brands and useful, purposeful relationships to consumers.” This end-to-end DECEMBER 2019
35
approach is credited by Peyton as providing the company with an almost unique offering. “When considering our clients’ challenges, we combine brand strategy, technology transformation and marketing operations with a measurable focus on our clients’ real bottom line. In short, we bring the diversity of talent required to find transformative ideas, execute and optimise them at every stage. There are very few people, and very few businesses globally, that do that from a strategy perspective, and from a delivery perspective, and a si a .busi ne ssc h ief. com
LEADERSHIP
36
then all the way through to a run and
is the biggest market in the region and
operate perspective.”
remains one of the fastest growing
In the APAC region, the company
markets in the world, but it’s almost a
faces unique opportunities and chal-
different internet. While we typically
lenges. The scale of Asia, for instance,
talk about Google, Facebook, etc. as
might be deceptive, thanks to the
digital platforms, none of them are
diversity of its populations. “While Asia
relevant in China. You’ve got a whole
has a vast number of people, it is bro-
different set of technologies that exist
ken down into many different markets
there – Baidu, WeChat, Youku, and a
that have very different cultures and
whole different set of behaviours that
languages, with budgets being spread
structure their communications.”
across each of them,” says Peyton.
Wunderman Thompson is well
There’s not just a diversity of people,
equipped to deal with these chal-
but a diversity of technology. “China
lenges, tailoring its offerings to specific
“ The best thing that you can do for a client is solve a problem for them, at times to the point that the client doesn’t even need us anymore” — Justin Peyton Chief Transformation & Strategy Officer APAC, Wunderman Thompson DECEMBER 2019
CLICK TO WATCH : ‘ADOBOLIVE | WUNDERMAN THOMPSON OFFICIALLY LAUNCHES IN MANILA’ 37
clients and markets. “We try to be very technology agnostic,” explains Peyton. “We don’t go in and try to sell the same thing. Our question is: ‘how do we make sure that we’re giving our clients the best fit for either the existing technology stack, or find the best fit for their ambitions?’ Clients all come from different starting points and with different ambitions, so there’s no one size fits all.” Typical technologies Wunderman Thompson deals with are in the advertising and marketing realm (adtech and martech), looking at factors such a si a .busi ne ssc h ief. com
LEADERSHIP
as customer experience and data to further the goal of personalisation and targeted communications. The focus of Peyton’s role, that of transformation and strategy, is of increasing importance to the company and to the market. “Transformation is the topic of the moment,” he says. “With change happening so quickly, we no longer get briefs from clients that don’t have this focus. Brands today are all asking ‘how do we evolve our business to be as relevant as possible in a 38
consumer’s life?’ and, typically speaking, ‘how do we use technology and data in order to facilitate and accelerate that process?’” The scope of transformation means that many different areas of change are valid. “What’s exciting is that Wunderman Thompson can approach transformation at multiple levels,” says Peyton. “We can approach it from a technological perspective, creating product stacks for clients by looking at big platforms and technologies. Or we can help them from the run and operate perspective – which I think is massive and has been overlooked so far in terms of what transformation DECEMBER 2019
“ What’s exciting is that Wunderman Thompson can approach transformation at multiple levels” — Justin Peyton Chief Transformation & Strategy Officer APAC, Wunderman Thompson
means. This means looking at the dayto-day operations and tools people need so they deliver a modern form of marketing.” Regardless of the method, as Peyton explains, the end goal stays the same. “The best thing that you can do for a client is solve a problem for them, at times to the point that the client doesn’t even need us anymore. If we can do that, it’s fantastic. People will say: ‘OK, but then you don’t have a job.’ But in this rapidly changing world, we can’t be about doing and protecting the same thing over and over again. It’s about making sure that we’re helping brands grow by solving today’s problems so that we can further partner with them on planning for and solving tomorrow’s problems as well.”
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39
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TECHNOLOGY
42
DECEMBER 2019
DATA ANALYTICS FOR GOOD – THE NEXT FRONTIER David González, Head of Big Data and Advanced Analytics for Vodafone Business, on the opportunity to use big data for social good WRITTEN BY
DAVID GONZÁLEZ
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43
TECHNOLOGY
I
n 2018, data visualisation company
DOMO predicted that by 2020,
1.7MB of data will be created every
second for every person on earth.
The new year is now only one month away, and this explosion of data is showing no sign of slowing down. As digitalisation becomes the norm across more industries and IoT adoption continues, even more data will be generated. Industries like healthcare and manufacturing have been turning data into insights that drive improvements 44
to customer service, processes and products. Outside of these use cases, could this data driven approach also be applied to tackle social challenges? across myriad areas of modern life,
MOVING BEYOND THE ENTERPRISE
granting us the ability to then use
It would be short-sighted to assume
those insights to address existing and
that data analytics can only be
future problems. Aggregated and
relevant within the enterprise. Im-
anonymised large-scale data has
proved connectivity and advances in
the potential to generate immense
IoT are creating vast volumes of data.
positive social impact.
As more people interact with these
For example, managing the after-
connected devices, the data gener-
math of natural disasters can consume
ated will increase exponentially to
resources when time is precious.
represent every aspect of society.
Planning aid in advance is key, and data
This will enable us to gain a better
analytics can be used to inform a plan
understanding of how processes work
to assist those in need. Governments
DECEMBER 2019
45
and NGOs need to know where the impacted people are, in which direction they are moving and how the environment is changing. Only then can they respond effectively and efficiently to the effects of the disaster. In a similar way, data analytics can be applied to protect public health by predicting the spread of a pandemic. Accurate predictions allow authorities to put measures in place which mitigate the effects and control the incidence of new cases.
“ Improved connectivity and advances in IoT is creating vast volumes of data” — David González, Head of Big Data and Advanced Analytics for Vodafone Business a si a .busi ne ssc h ief. com
TECHNOLOGY
“ Unlocking the full potential of data will require a concerted effort between different organisations” 46
— David González, Head of Big Data and Advanced Analytics for Vodafone Business
CLOSER TO HOME Data can make a difference on a global scale, but what about in urban centres? Today, 55% of the world’s population lives in such an environment. This proportion is expected to increase to 68% by 2050. That’s another 2.5bn people dwelling in urban areas. This increase will place significant demands on infrastructure, retailers, banks, healthcare systems and educational institutions. In addition, preventing crime will also be a top priority. There is the potential for huge social impact, improving the management of cities and the quality of life for citizens. For example, data collected by law enforcement can improve safety by better predicting crime spots and implementing measures such as improved lighting or CCTV. Preparing for this scenario begins now, and it starts with understanding the movement of people. Governments and businesses alike can use this information to make significant decisions. In transport, for example, it can inform where to build bridges and footpaths or place electric car charging points.
DECEMBER 2019
CLICK TO WATCH : ‘WHAT COULD 5G DO FOR YOUR BUSINESS?’ 47 The success of these initiatives relies
sensitive information, such as individual
on accurate insight into the needs
location or health status. Where will
and habits of urban populations. This
this data be stored and how will it be
must start with democratising access
collected? Who will ultimately be
to population data intelligence, in
responsible for keeping it safe from
a secure and anonymised way that
malicious actors? How can citizens
protects the privacy of future citizens.
be assured that their data will be anonymised and only be used for the
KEEPING DATA PRIVATE
stated purpose? The answers to these
The main concern about widespread
questions will affect the extent of the
data collection is data privacy; many
public’s support. Transparency in
high-profile companies have come
communicating with the public will
under scrutiny for their use of customer
be critical to the success of any data
data. However, it becomes more
analytics initiatives, even if the purpose
concerning when it is related to
is for good. a si a .busi ne ssc h ief. com
TECHNOLOGY
WORKING TOGETHER TO KEEP DATA SAFE Unlocking the full potential of data will require a concerted effort between different organisations. Those who collect the data must work together to ensure the insights are used by the most appropriate organisations who are able to effect change. Vodafone is part of a wider alliance – the GSMA’s Big Data for Social Good initiative – where mobile operators share insights with NGOs to build an ecosystem that supports timely 48
planning and response. Location intelligence – where location-based
“ The increasing digitisation of industries provides the best opportunity for data to be mined for social good” — David González, Head of Big Data and Advanced Analytics for Vodafone Business DECEMBER 2019
insights are used to solve problems and identify new opportunities – plays a role here, building a safer, more sustainable world. The increasing digitisation of industries provides the best opportunity for data to be mined for social good, as a positive ‘side effect’ of collection. In addition to making services more efficient, streamlined and personalised, the same data can be used to predict how populations move and react. As urban areas grow, these insights will be critical to informing how the safety and health of citizens will be managed. It is important that the right decisions are made now, regarding data collection and analytics. Only then will we be prepared to tackle the social challenges of the future.
a si a .busi ne ssc h ief. com
49
PEOPLE
52
Talent retention: why traditional methods are no longer enough Business Chief meets with Jen Scherler Gormley, HR Lead (UK), Cisco to discuss strategies to retain, source and develop talent WRITTEN BY
GEORGIA WILSON
DECEMBER 2019
53
a si a .busi ne ssc h ief. com
PEOPLE
C
urrently in the UK, 43% of employers feel it has become more difficult to fill job vacancies over the last 12 months,
with 31% seeing salary increases of more than 2% being used as an incentive for recruitment and retention of talent. When it comes to recruitment and talent retention, Jen Scherler Gormley, HR Lead
(UK), Cisco, believes that the flatline approach of annual appraisals and ratings for objectives and development simply isn’t enough. Performance ratings disenfranchise a large 54
proportion of employees, creating year—long labels regardless of a person’s change in performance over the next 12 months at a company. “For us, recruitment and talent management is about empowering people to be their best selves, as well as bringing everyone together to create an environment where individuals and teams can thrive. Five years ago, we revived our performance management processes by ditching annual appraisals and ratings.” Gormley further comments that the organisation’s move to eliminate annual appraisals from its talent strategy in 2015 has yielded positive results for its talent retention, seeing higher engagement from existing employees, as well as providing a strong differentiator for attracting new talent. DECEMBER 2019
55
Being ‘conscious’ is an important part of workplace culture, states Gormley. With 59% of UK workers looking to move jobs as a result of being undervalued, having no career progression and having unsupportive managers. With this in mind, it is important to focus on three key entwined areas: environment, the unique characteristics of the organisation and the specific experience of individuals, in order to manage and lead a positive culture. To incorporate this into its organisation, Cisco has a si a .busi ne ssc h ief. com
PEOPLE
implemented a digital platform that
coaching. Performance is ultimately
enables weekly connections in relation
personal to each individual and it is
to what support is required and what
important that continuous conversa-
individuals loved and loathed about the
tions take place between employees
week, to aid its elimination of annual
and their leaders.”
appraisals. “We call this ‘check-in’,” says
56
According to Gormley, a workplace’s
Gormley. “It has been adopted at all levels
culture should be built on a foundation
of the organisation – including our CEO
of accountability, empowerment and the
and executive leadership team – providing
freedom to speak out to achieve goals
important information to drive a different
within an organisation. Transparency
kind of conversation with team members
and empowerment is a driving force to
providing greater regularity, as well as
build trust, within an organisation and
allowing in—the—moment redirection
is a key element of ensuring that talent is
of work, support and continuous
retained and thriving.
“Fundamentally, inclusion is a bridge to connect diverse perspectives, providing a platform for new ideas and inspiring innovation” — Jen Scherler Gormley, HR Lead (UK), Cisco
DECEMBER 2019
CLICK TO WATCH : ‘WORKPLACE TRANSFORMATION AT CISCO WITH WEBEX TEAMS’ 57 When looking to source talent,
fundamental to building and maintain-
Gormley highlights the importance
ing a culture of continuous learning as
of combining human connection
well as attracting talent that aligns
with innovation to not only develop
with our values.”
employees, but also the business.
Inclusion and diversity is essential
Industries are continuously changing
to innovation. When sourcing, main-
and adapting, and organisations
taining and retaining talent, it is key to
shouldn’t shy away from utilising
ensure an organisation is inclusive.
multiple forms of employment such as
“We have found that certain language
apprenticeship programmes, alongside
used in job profiles could dissuade
traditional employment methods,
female talent from applying. Therefore,
as well as utilising transferable skills.
we have implemented a tool that
“There is no one answer to this, but
analyses the language in our job
we’ve found that the human connec-
descriptions to ensure that we are
tion intertwined with innovation, is
attractive to a diverse pool of potential a si a .busi ne ssc h ief. com
PEOPLE
applicants. In addition, every year, we take part in Girls in ICT Day to encourage a higher percentage of girls to become a part of the industry by utilising technology to communicate with and support girls across the globe,” says Gormley. “Fundamentally, inclusion is a bridge to connect diverse perspectives, providing a platform for new ideas and inspiring innovation.” Internal changes within a company can put a strain on organisations. With this in mind, Gormley believes it is 58
important to maintain frequent communication between leaders and team members to ensure that workplace
“ We have found that certain language used in job profiles could dissuade female talent from applying” — Jen Scherler Gormley, HR Lead (UK), Cisco
culture doesn’t get left behind in the process. Companies should instead utilise internal changes to enhance communication and manage talent. “We care a lot about our culture. We are driving for an environment where healthy conversations happen between individuals and teams, where no one is isolated and each person feels able to proactively support their colleagues,” says Gormely, who feels its implementation at Cisco provides a level of transparency she has not seen
DECEMBER 2019
59
in other companies, resulting in greater
an organisation. As a result of
engagement from employees to actively
incorporating these foundations,
participate in conversations regarding
organisations should see an increase
experience and individual growth.
in innovation and inclusion, as well
Ultimately, when it comes to talent
as experiencing greater engagement
retention, traditional methods are no
when it comes to individual growth
longer enough to encourage employees
and performance.
to stay with a company for the long term. Companies need to be more conscious of their employees by maintaining human connection and communication, in order to drive accountability, empowerment and freedom within a si a .busi ne ssc h ief. com
S U S TA I N A B I L I T Y
60
Evolving the journey: putting your carbon footprint at the top of the agenda David Griffiths, Senior Product Marketing & Strategy Manager at retail supply chain Adjuno, looks at reduction of carbon footprints in the retail industry WRITTEN BY
DECEMBER 2019
DAVID GRIFFITHS
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S U S TA I N A B I L I T Y
62
C
onsumers are thrilled by the
tainability efforts of their favourite retail-
speed and flexibility of e-com-
ers. In fact, a third of consumers are
merce. But the proliferation of
now choosing to buy from brands they
new retail channels and choices
believe are doing social or environmen-
is changing their purchasing behaviour,
tal good. That’s a large proportion of the
and ultimately, that’s taking its toll on the
customer base that a retailer risks los-
environment. With next-day, same-day
ing if they don’t meet this expectation.
and one-hour delivery options starting
The good news is that retailers across
to be commonplace with many retail-
the world are recognising this and
ers, consumers are fast becoming used
starting to step up with commitments to
to getting their chosen product not just
address the sustainable agenda. But are
quickly, but almost instantly.
they doing enough?
At the same time, consumers are
With the battle moving to the supply
placing greater emphasis on the sus-
chain and concerns growing around air
DECEMBER 2019
63
pollution and greenhouse gases, brands now have a responsibility to reduce their carbon emission levels and drive the creation of the green supply chain.
INDEPENDENTS VS RETAIL GIANTS Independent retailers are currently rising above the competition when it comes to low carbon emissions. Transport is the second highest emitter of greenhouse gases, therefore the independents who have shorter
“ A third of consumers are now choosing to buy from brands they believe are doing social or environmental good” — David Griffiths Senior Product Marketing & Strategy Manager, Adjuno
product journeys will naturally have a smaller carbon footprint. It isn’t as easy a si a .busi ne ssc h ief. com
S U S TA I N A B I L I T Y
“ Brands now have a responsibility to reduce their carbon emission levels ” — David Griffiths Senior Product Marketing & Strategy Manager, Adjuno
for the retail giants. With longer journeys, more players in the supply chain and bigger product ranges to contend with, retail giants have a harder time of reducing their carbon footprint. But it certainly is possible. Packaging should be at the top of every retailer’s list when it comes to making strides towards sustainability. A strategic approach to transit packaging that optimises carton, pallet and container fill will not only reduce packaging costs, with higher standards enforced, but it will also decrease shipping costs as a result of better container
64
DECEMBER 2019
CLICK TO WATCH : ‘SUPPLY CHAIN SOFTWARE – ADJUNO SCM SOLUTIONS’ 65 utilisation, with less empty space being
ing types used, and consequently the
shipped. Not only does this reduce
reduction in the amount of containers
the number of journeys that need to
and DC space required. The retailers
be made, but it will also enable more
that are serious about reducing their
efficient use of DC space. Ultimately
carbon footprint have the tools at their
though, a strategic approach to pack-
disposal to make it happen, with simple
aging reduces waste and therefore
changes making a world of difference
improves the carbon footprint, putting
to carbon-conscious consumers.
retail giants one step closer to meeting their sustainability goals. Many large retailers have already
SHOUTING ABOUT SUCCESS At the start of this year, Aldi claimed
seen success in this area too, with
it was the first grocer in the UK to be
effective changes to their packaging
carbon-neutral, detailing that it had
compliance resulting in huge reduc-
cut greenhouse gas emissions per
tions in the number of different packag-
square metre of sales floor space by a si a .busi ne ssc h ief. com
S U S TA I N A B I L I T Y
53% since 2012. That’s a big statement to make, but it shows Aldi’s commitment to making changes that have resulted in extremely positive outcomes. The fact is that changes are being made, but few retailers are shouting about their behind-thescenes success, leaving the issue of reducing carbon footprint still far lower than it should be on the retail agenda. The lack of visibility for consumers is weakening the message and hindering their ability to trust the brand, so whilst retailers must ensure 66
that first and foremost they are making sustainable changes for the right reasons, they also need to make sure they are letting consumers know what is really happening. Simple changes to packaging will show consumers that the retailer is making an effort, for example, if a retailer can confidently say in its marketing materials that all items from one brand are being shipped into the store using 50% less packaging, every carbon-conscious consumer would know that steps are being taken and be more likely to buy from the retailer as a result.
DECEMBER 2019
“ Simple changes to packaging will show consumers that the retailer is making an effort” — David Griffiths Senior Product Marketing & Strategy Manager, Adjuno
67
MAKING A CHANGE The potential is huge, but retailers must realise that the smallest changes can have the biggest impact. What’s important is for retailers to make these changes and then shout about it from the rooftops, moving carbon footprint to the top of the agenda and creating an ecosystem of retailers working towards a common goal to turn sustainability from talk to action.
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CITY FOCUS | MANILA
City Focus
MAN
68
Business Chief examines the long history that has resulted in Manila becoming the undisputed jewel of the Philippines’ economy WRITTEN BY
DECEMBER 2019
WILLIAM SMITH
NILA
69
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CITY FOCUS | MANILA
T
he Philippines’ capital of Manila is hard to pin down. The name is used to refer to both the City of Manila itself
as well as the wider Metro Manila region.
The city proper is by some measures the most densely-populated in the world, while Metro Manila incorporates an impressive 15 more cities in close proximity: Quezon City, Caloocan, Las Piñas, Makati, Malabon, Mandaluyong, Marikina, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, San Juan, Taguig and Valenzuela. Taken together, the Philippine Statistics Authority (PSA) said in 2015 that the 70
total population was over 12.8mn people. The PSA reported Metro Manila’s 2018 GDP as being approximately $127.4bn, representing around 38% of the country’s total output. As the capital of the Philippines, Manila has a long and storied history. Its original inhabitants were the Negritos, the Philippines’ aborginial population. Over time, Chinese influence was exerted via trade, before invasion by Hindu and later Muslim forces from the Indian subcontinent. In the 16th century, the Spanish, led by conquistador Miguel López de Legazpi invaded, annexing the territory to their empire. These competing influences were drawn by Manila’s strategic location for trade between Europe, Asia and the New World, and the city accordingly prospered. It was DECEMBER 2019
71
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CITY FOCUS | MANILA
“ Metro Manila incorporates an impressive 15 more cities in close proximity�
72
during this time that the historic Intramuros walled district of the city was created, which features distinctive architecture from the period. Spanish control of the city was, however, exchanged for American rule after the Spanish-American war of 1898. It is perhaps this period that has left the longest-lasting legacy on the city and the country at large, with the Philippines in its current incarnation having English as well as Filipino as its official languages, and possessing a presidential system of government. The City of DECEMBER 2019
CLICK TO WATCH : ‘METRO MANILA | PHILIPPINES | TRAVEL VIDEO | FRANCIS VARELA ‘ 73
Manila was devastated throughout the
in areas as diverse as real estate, edu-
Second World War, during which time
cation, financial services, utilities,
the country was occupied by the
energy and more. It got its start under
Japanese. In 1946, following the war, the
the name of Casa Roxas, founded by
country was granted its independence,
Domingo Roxas and Antonio de Ayala,
and Manila was rebuilt in a style befit-
who invested in a distillery, growing via
ting its heritage.
banking and trams before playing a role in the country’s regeneration following
AYALA CORPORATION
the Second World War.
Ayala Corporation has its roots in the colonial history of the Philippines.
SM INVESTMENTS
Founded in 1834, when the Philippines
Another conglomerate, SM Investments
were under the control of the Spanish
was founded by Henry Sy, an immigrant
Empire, the conglomerate has interests
from China. The company takes the a si a .busi ne ssc h ief. com
CITY FOCUS | MANILA
initials of Sy’s first company, a shoe store known as ShoeMart, founded in 1958. The shoe store later grew into a department store, and the company retains a focus on retail, with more than
1.78mn Population of Manila (2015)
70 SM Supermalls shopping malls across the country. The firm also now has interests in banking and property development, both in the Philippines and China.
SAN MIGUEL CORPORATION Perhaps the Philippines most internationally famous organisation, the San 74
Miguel Corporation holding company operates San Miguel Brewery, makers of San Miguel Beer. Founded in 1890 by Spaniard Enrique María Barretto de Ycaza, the brewery’s produce first found success in places in Asia such as Hong Kong before becoming more internationally popular. The company has since diversified its offerings, moving into the food and packaging industries, as well as utilities, mining and even airport operation. Owing to its placement on Manila Bay, a natural harbour leading onto the South China Sea, Manila has served as an important port throughout its history. The South China Sea itself is a DECEMBER 2019
$127.4bn GDP (2018)
72%
Phillipines’ trade goes through the China Sea
vital shipping lane, seeing an estimated third of global shipping passing through, worth $3.37trn. Though the Philippines is not considered an import/export powerhouse, American think tank the Center for Strategic and International Studies said that 72% of the country’s trade was through the South China Sea. Consequently, the Philippines’ largest port of Manila is a vital link, showcasing 2,460,387 containers in 2018. Upcoming events in the city include the Filipino Franchise & Business Expo 2020 at the World Trade Center in Pasay, which describes itself as an occasion for entrepreneurs and the “longest-running business expo in the Philippines”. The event runs between 28 February and 1 March. Also upcoming is The International Farmers Summit 2020, an agricultural event with a focus on animal health, genetics and nutrition, taking place between 12-14 February at the SMX Convention Center also in Pasay. Manila’s prime location has led to the city being fought over for much of its history, but that same source of conflict has also led to the economic success that has turned it into the powerhouse of the Philippine economy.
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T O P 10
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DECEMBER 2019
Wealthiest women inAsia
77
From property tycoons, casino owners and oil baronesses to titans of concrete, steel and industry, meet the 10 wealthiest women in Asia WRITTEN BY
SHANNON LEWIS
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T O P 10
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10
Angela Leong US$4.14bn
Based in Macau, Angela Leong is the 478th richest person in the world. With a net worth of US$4.14bn, according to Forbes’ Billionaires list, she is the Managing Director of SJM Holdings. Not only is she the largest individual shareholder of this casino company, she has a portfolio consisting of properties all over Hong Kong which she has been building since she was in her early 20s. Leong’s success earns her the 24th place on Forbes’ Hong Kong’s Richest 2019 list, and sixth place on Inside Asian Gaming’s 2018 Asian Gaming Power.
DECEMBER 2019
79
09
Fan Hongwei US$11.7bn
The 452nd richest person in the world, Fan Hongwei is the Chairman of the Board and General Manager of chemical manufacturing corporation Hengli Petrochemical. Hailing from Jiangsu, China, she and her husband co-founded Hengli Petrochemical in 2002. With a net worth of $11.7bn, she has been in her position since 2016. A graduate of Nanjing Normal University, Hongwei is the 4th richest woman in China, according to China Daily.
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08
Pansy Ho US$4.2bn
Forbes places Pansy Ho’s net worth at $4.2bn. One of billionaire Stanley Ho’s 17 children, she chairs Shun Tak Holdings, a company founded by her father. Shun Tak Holdings is a property development firm that operates hotels and ferries across Hong Kong and Macau. The 413th richest person in the world, Ho is the second-largest shareholder of Macau-based casino operator, MGM China. Ho holds a degree from the University of Santa Clara.
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Photo: Š Crossroads Foundation Photos
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07
Carrie Perrodo US$4.3bn
Carrie Perrodo is the 303rd richest person in the world, according to Forbes. Born in Singapore with French citizenship, she runs family-owned oil company Perenco alongside her son Fracoise, as she has since 2006 when her husband, the previous owner, died in an accident. With a net worth of $4.3bn as of October 2019, she and her family were awarded the number one spot on the 2018 Driving Rich List for their combined fortune of $7.21bn, according to the Sunday Times.Â
DECEMBER 2019
Photo: © David Shankbone
83
06
Chan Laiwa US$5.8bn
Currently the 298th richest person in the world, with a net worth of $5.8bn, according to Forbes, Chan Laiwa comes from humble roots. Born in China into an impoverished family, Chan’s business career started with her opening a furniture repair business in 1976. She founded the Fu Wah International Group in 1988. It is currently one of the biggest real estate developers in Beijing. Business Insider ranks her third on its 2016 list of the world’s richest selfmade women.
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Building an ecosystem? Connect the dots. “Your journey to cloud must navigate pitfalls and opportunities that are unique to your business. We support you in imagining and delivering your cloud journey and making it run�. Eric Meistermann, Deloitte Partner in charge of AXA Group
T O P 10
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05
Savitri Jindal US$5.8bn
Indian billionaire Savitri Jindal is the 290th richest person in the world, according to Forbes, which lists her net worth as $5.8bn. She chairs Jindal Group, which primarily operates in the steel, cement, power, and infrastructure industries. Jindal runs a family business; Jindal Group, which was originally set up by her late husband. The largest group assets are currently supervised by her son, Sajjan Jindal. Jindal is ranked 20th on Forbes’ India’s Richest 2019.
a si a .busi ne ssc h ief. com
T O P 10
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04
Wu Yajun US$12.2bn
With a net worth of $12.2bn, Wu Yajun is the richest self-made woman in the world, according to Forbes, and the 149th richest person. She co-founded Hong Kong-based Longfor Properties in 1993 with her now ex-husband, a real estate company that developed into Longfor Group Holdings. According to Bloomberg, Longfor had a reported 2018 revenue of $17.5bn. Yajun is currently the Chairman and largest shareholder of the company but has operated as its CEO in the past.
DECEMBER 2019
87
Photo: © WiNG
03
Kwong Siu-hing US$13.5bn
The 78th richest person in the world, Kwong Siu-hing has a real time net worth of $13.5bn as of October 2019, according to Forbes. Residing in Hong Kong, she served as Chairman of Sun Hung Kai Properties from 2008 to 2011, following the death of her husband and co-founder Kwok Tak-seng in 1990. Though no longer the Chairman, she is still the largest single shareholder with a 26.58% stake in the company, according to Forbes. She places fifth on Forbes’ Hong Kong’s 50 Richest 2019.
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T O P 10
02
Gina Rinehart US$14.7bn
Rated 83rd on Bloomberg’s Billionaires Index, Gina Rinehart is the 75th richest 88
person in the world, according to Forbes. With a real net worth of $14.7bn, she has built her fortune on the iron ore industry, following in the footsteps of her iron-ore explorer father. After his death, Rinehart took his failing estate and converted it into the fortune she has today. Despite being Australia based, and the richest Australian citizen, Rinehart’s greatest fortune comes from Asia and the Roy Hill mining project that has been making shipments to Asia since 2015.
DECEMBER 2019
0000 YEAR FOUNDED
$0.0bn REVENUE IN XXXXXXXXX DOLLARS
0,000 NUMBER OF EMPLOYEES
89
CLICK TO WATCH : ‘2017 CHAIRPERSON OF THE YEAR GINA RINEHART, EXECUTIVE CHAIRMAN OF HANCOCK PROSPECTING’ a si a .busi ne ssc h ief. com
T O P 10
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CLICK TO WATCH : ‘COUNTRY GARDEN CORPORATE PROFILE’
DECEMBER 2019
0000 YEAR FOUNDED
$0.0bn REVENUE IN XXXXXXXXX DOLLARS
0,000 NUMBER OF EMPLOYEES
01 Yang Huiyan $24.2bn+
The 45th most powerful international woman, according to Fortune, Yang Huiyan is the richest woman in China. As the 42nd richest person in the world, according to Forbes, her net worth exceeds $24.2bn. She is a majority shareholder of real estate developer Country Garden Holdings, owning 57% of the company. With a degree from Ohio State University, she is the Chairman of Chinese education company, Bright Scholar Education Holdings. Yang is rated 6th on Forbes’ China Rich List.
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92
LF LOGISTICS: GROWING A BUSINESS ALONGSIDE THE CLIENT WRITTEN BY
OLLIE MULKERRINS
DECEMBER 2019
PRODUCED BY
CAROLINE WHITELEY
93
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LF LOGISTICS
Simon Oxley, Executive Vice President – Global Business Development and Head of Indonesia at LF Logistics, discusses developing customer relationships in tandem with revenue streams to provide a robust network of solutions.
LF
Logistics is a third-party logistics (3PL) provider based in Asia and operating as part of the LF Group. It has been in
operation since 1906, and today provides three key areas of service to users: distribution centre 94
services, transportation management services and global freight management. LF Logistics manages over 250 distribution centers across 15 countries in the Asian region. These distribution centers serve over 400 customers, many of which are recognisable, household brands. Its operations cover a range of key verticals, including Footwear, Apparel & Accessories, Fast-moving Consumer Goods, Food and Beverage, Beauty & Wellness, Consumer Electronics and Healthcare. Simon Oxley, Executive Vice President - Global Business Development & Head of Indonesia at LF Logistics explains: “We’re the logistics provider of choice in Asia, focused on expanding our customers’ operations across the region. One of our customers, for example, has grown across nine countries with our support and another has doubled in size over the DECEMBER 2019
2008
Year founded
10,000+ Number of employees
95
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LF LOGISTICS
“ We’ve been very successful in the industry, our growth is above the industry average and we believe our three pillars are the foundation of this” — Simon Oxley, Executive Vice President – Global Business Development & Head of Indonesia at LF Logistics 96
DECEMBER 2019
past 18 months. Through our solution design expertise, we can help a business design and build its distribution centres, employ staff, put first-class operational systems in place or start operations in a new location.” LF Logistics uses a three-pillar model to measure its success and guide its operations with its customers. The first of these is operational excellence, as Oxley explains: “We believe providing excellent service is a main driver for customers’ success and their
CLICK TO WATCH : ‘MANAGEMENT TRAINEE PROGRAM 2018’ 97 desire to stay and grow with us. We
With regards to business develop-
are operations-centric and focused on
ment, LF Logistics identifies potential
exceptional customer service.”
customers’ growth targets to see how
The second and third pillars are
LF Logistics can facilitate this growth,
account management and business
to both provide a solution that best fits
development. Each customer has its
the customer and benefits LF Logistics’
own dedicated account team to facili-
revenue stream. These three pillars have
tate the transformation it will undergo
become the foundation upon which the
with LF Logistics. “This provides
company has built its business. “We’ve
confidence that we are serving our
been very successful in the industry, our
customers to their required service
growth is above the industry average
standards, that operations are
and we believe our three pillars are the
efficient, and that we are prepared
foundation of this,” says Oxley.
to grow our business with existing customers,” Oxley notes.
The dedication to these key areas has ensured LF Logistics rapid expansion a si a .busi ne ssc h ief. com
The answer to your modern warehousing needs Each of our warehouses are designed and built to answer your business needs. Research for new design, materials and modernised systems are done continuously to ensure our client’s business efficiency. People think it’s an innovation, but for us this is at the very core of our promise - fulfilling our client needs.
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Service Excellence We provide modern and wide range of transportation and logistics services. We aspire to be creative and innovative leader to transcend in the industry and develop efficient processes without compromise on safety. Our professional drivers and staff are visible reminders to our commitment of providing excellence and dependable services.
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DRIVER MANAGEMENT
of services offered to its customers. As more companies join the network, the benefits of growing infrastructure and forward planning become evident. According to Oxley: “We are investing in our business in the region, whether that’s in people, in systems, in distribution centres or transportation networks, our customers can see our visible commitment to the industry, our infrastructure and an excellent level of service.” LF Logistics’ own growth is led by the needs of its customers, both
“ Through our solution design expertise we can help a business design and build its distribution centres, employ staff, put first class operational systems in place or start operations in a new location” — Simon Oxley, Executive Vice President – Global Business Development & Head of Indonesia at LF Logistics
current and potential. The company
99
E XE CU T I VE PRO FI LE
Simon Oxley Simon Oxley is an experienced supply chain professional, having worked in the Industry for 30 years and loves being a part of an industry that improves the lives of billions. He has significant experience in designing and delivering operational solutions to large brands across multiple business sectors, and a strong background in distribution center management, transportation operations, ogistics system implementations and delivering improved supply chain performance. Simon has global experience, having worked in Europe, the US, and in multiple countries across Asia, a region that has been his focus over the past two decades.
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LF LOGISTICS
C O M PA N Y FACT S
• Working in 15 countries • Managing over 250 distribution centers • 100% annual growth over the past two years in Indonesia
100
DECEMBER 2019
invests in its future operations to anticipate the requirements of the industry. For example, rather than building up fulfilment networks from scratch, LF Logistics will instead build upon pre-existing needs to ensure smart investment. “We don’t look to expand into new countries from a zero base. We would rather expand into the markets that our customers are targeting. Over the past five years our expansion has been driven by customer expectations. Entering into a new country with a customer means we expand with their business and can readily provide expertise as they are already familiar with us. We know their operating procedure and, in many cases, are already working with the same implementation teams they have used before.� LF Logistics looks to breed that same sense of partnership and familiarity with other partners it works with. One of the largest types of vendors are property developers, such as MMP Property, that aid in the construction of distribution centres. LF Logistics will work in tandem with developers to design each new facility and from there, negotiate leasing agreements a si a .busi ne ssc h ief. com
101
Reclaim Reuse Reinvent
Uniquely Sustainable
Stop deforestation.Take action. Use Re>Pal’s 100% recycled plastic pallets for sustainable lifetime value. Contact us for a quote sales@re-pal.com www.re-pal.com
Loscam is actively promoting pallet pooling for customers along the supply chain, to improve loading & unloading efficiency, and increased goods safety.� Learn More
Zulhizar.Hasibuan@loscam.com
103 to use the space. Transportation
strain from areas that may be in need.
vendors, such as Ugasan Berkat Jaya,
A good example of these peaks was
then provide operational and rental
the singles day period of 11 November
services for the vehicles needed to
2018 when the LF Logistics facilities
manage a site, as and when they are
in China received 7.6mn orders in a
required. These services may include
24-hour period. Lastly, equipment
drayage to seaports, heavy duty haul-
providers ensure that customers have
age vehicles or smaller vehicles for
a connection to a steady and reliable
city deliveries. This allows the com-
supply of anything from software and
pany to adapt the infrastructure of its
hardware to automated machinery.
organisation to suit its needs whilst
In addition to this, providers such as
leaving room for reassessment in the
Re>Pal and Loscam give the com-
future. Labour providers meet the
pany a choice in what kind of pallets
requirement to fill positions with addi-
or handling materials it wishes to use
tional labour at peak periods to relieve
throughout its operations. a si a .busi ne ssc h ief. com
LF LOGISTICS
104
“ We’re very focused on remaining a leading 3PL in Asia, and if there are countries we could expand into then we will ensure that expansion is in line with our customers requirements so they can grow their business with us” — Simon Oxley, Executive Vice President – Global Business Development & Head of Indonesia at LF Logistics
DECEMBER 2019
The ability of LF Logistics to serve a vast array of requirements, whilst maintaining a trusted network of partners, enables a customer to streamline the growth of its business across individual sectors, through a tried and tested process. This level of holistic integration extends across many LF Logistics systems. Oxley elaborates; “The Oracle Transport Management system allows us to process orders. If we move to a new market we are able to seamlessly provide this same operational system. So, if a brand moves
105
to a new market and needs a 3PL pro-
represents half the world’s population.
vider, it will already have an integrated
Of all the global consumer spending
system with us and that’s one less
growth in the next 12 years, 84% of
obstacle to entry in a new region.”
that is forecast to be within Asia. We’re
Over the past two years LF Logistics
very focused on remaining a leading
has seen 100% growth across the
3PL in Asia, and if there are new mar-
business in Indonesia and continues to
kets we could expand into then we will
grow throughout the Asian region. By
ensure that expansion is in line with our
developing in familiar territory it can
customers’ requirements, so they can
improve upon the services it can offer
grow their business with us.”
its clients, whilst taking advantage of the economic opportunities provided by one of the fastest growing markets in the world. “The area we operate in a si a .busi ne ssc h ief. com
106
Packaging solutions to solve sustainability WRITTEN BY
OLLIE MULKERRINS PRODUCED BY
CAROLINE WHITELEY
DECEMBER 2019
107
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H U H TA M A K I H O N G K O N G
108
Huhtamaki works with clients to find the most practical sustainable solutions to increase revenue without impacting the environment
H
uhtamaki is a global specialist in the food and drink packaging industry. The company
operates across 35 countries including Europe, Asia, Oceania (EAO) and the US, working across three verticals; flexible packaging, moulded fibre packaging and foodservice packaging. Through these key verticals, Huhtamaki holds sustainability at its core and ensures that it offers an increasingly diverse portfolio of sustainable products and practices to satisfy the rising demand for CSR coming from a more
DECEMBER 2019
109
conscious consumer base. Chi Lu, Head of Sourcing –
to a functional sourcing organisation working within the Foodservice EAO
Foodservice Asia-Oceania at
segment,” explains Chi. “For sourc-
Huhtamaki, outlines the challenges of
ing, I’m part of a group function. Our
maintaining a network of sustainable
team supports manufacturing units in
products across distant locations and
India, New Zealand, Australia, China
evolving cultural shifts. Chi is respon-
and Malaysia, totalling seven factories
sible for the governance of sourcing
and four sales offices operating in the
operations in the Asia Oceania region
Asian Oceania region.”
within the Foodservice segment and
The complexities of finding sustain-
is accountable for managing five
able materials produced by sustainable
direct reports for the traded goods.
manufacturers, who take social respon-
He coordinates projects between
sibility seriously, provides its own
the group and local units. “I belong
challenges. To eliminate the ambiguity a si a .busi ne ssc h ief. com
H U H TA M A K I H O N G K O N G
“In terms of changing from plastic to a more sustainable alternative, there is no challenge – it simply must be done” 110
— Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki
of operating in smaller departments across a diverse range of countries and cultures, Chi has turned to creating a sourcing hub for traded goods in the Asia Oceania region, where suppliers and materials can be vetted through a single aligned process and set of regulations. To maintain consistency across all of its sourcing methods, Huhtamaki Foodservice EAO has chosen to apply a single centralised sourcing model within its group level. “In the group sourcing organisation, we have a sourcing director who is based in Europe for all the sourcing functions operating with our category buyers,”
DECEMBER 2019
CLICK TO WATCH : ‘PLEASE MEET HUHTAMAKI’ 111 says Chi. “The group function will cen-
practicality of what a material can do
trally source key raw materials, paper,
when trying to replicate the versatility
polymer, resin, ink and logistics for the
and robust nature of plastics. Some
segment manufacturing units. My team
materials may require additional chemi-
looks after third party traded goods
cal additives to achieve a level of quality
and we are based in Asia.”
in line with what a consumer may be
When looking to find alternative
used to from traditional materials.
materials, a number of factors must be
“There are instances where a client
considered beyond the tangible assets
may be used to plastics, yet when turn-
being offered by a prospective sup-
ing to sustainable materials, has very
plier. Maintaining sustainability can be
high standards. Not every supplier will
easy to overlook with the production
pass those strict requirements,” affirms
methods or workforce conditions used
Chi. Another challenge to replacing
to manufacture any given material. As
traditional material like plastic is main-
a juxtaposition to this there is also the
taining its long-term sustainability. An a si a .busi ne ssc h ief. com
H U H TA M A K I H O N G K O N G
112
1920
Year founded
example “typical alternative to plastic utensils is wooden cutlery made from birchwood. Birch tree usually takes about 20 years to mature. In the US
€3.1bn+
alone, there are about 40bn plastic utensils used each year. If you intend to
Total Revenue
replace all 40bn units annually, the end
3,200
considered as a whole. With this in mind,
Number of employees
product wouldn’t be sustainable when we ensure our suppliers source their raw material from a sustainable source.” Huhtamaki is also a creator of sustainable materials. It’s Fresh initiative created a meal tray from natural wood
DECEMBER 2019
E XE CU T I VE PRO FI LE
Chi Lu Chi Lu is an experienced senior strategic sourcing professional with industry experience spanning close to 20 years. He has worked for multinational corporations in Australia, New Zealand and Asia. His work portfolio is extensive, including logistics, medical consumables, dairy, building products/construction, and food packaging. Chi is recognised for his proven track record of improving profitability by delivering sustainable cost saving and being a driving force behind transforming from a transactional price based approach to a strategic focus value proposition model. He has influenced business decision making processes, challenged the status quo, and contributed to the growth of businesses. He has participated in organisational transformations and commercial optimisation projects which have contributed to the growth of businesses considerably. In his current portfolio he is part of a regional leadership team and is currently managing sourcing and sales operations. Prior to this, he served in various sourcing and commercial positions. He has a Bachelor’s Degree in Management Studies with a double major in Finance and Strategic Management and a Master’s Degree in International Business and Law from the University of Sydney. a si a .busi ne ssc h ief. com
113
Quality assurance PPD focuses mainly on thermoformed plastics in food packaging industry. Using high-speed in-line automatic forming machines along with in-house tooling and design team, plus in-depth industry knowledge and expertise in production, we will ensure high quality products to our customers. Learn More
“Our team supports manufacturing units in India, New Zealand, Australia, China and Malaysia, totalling seven factories and four sales offices operating in the AO region.” — Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki fibres, sourced from FSC certified
a natural alternative to provide one
renewable Nordic forests, in collabora-
solution with the resilience of plastic
tion with Saladworks and Södra. The
packaging. Bagasse is the dry pulpy
material can match the versatility of
fibrous residue that remains after sug-
black plastic but is still recyclable
arcane or sorghum stalks are crushed
and certified for home composting.
to extract their juice. This material can
“Huhtamaki Fresh has ensured
then be processed to create a biode-
the removal of 56 tonnes of hard to recycle black plastic from Waitrose
gradable plastic alternative. The perception of sustainable products can sometimes
& Partners supply chain,
be different from the
per year. The fibre-based
reality. Consumers
packaging is also 10%
may expect sustainable
lighter than conventional
materials to behave
trays and creates a 50%
a certain way on first
reduction in CO2 Emissions,”
impressions without
comments Tor Harris, Head
knowing the details behind
of CSR at Waitrose & Partners.
it. For example, there are
Chi has also turned to Bagasse,
instances of materials that a si a .busi ne ssc h ief. com
115
H U H TA M A K I H O N G K O N G
116
“We ran trials, product samples and negotiated the commercial terms” — Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki
DECEMBER 2019
may be listed as biodegradable but require certain conditions to act as a catalyst in order to achieve that degradation, such as PLA. “PLA is made from starch and other compound which may be able to decompose into a carbon in a controlled environment; that is industrial composting facilities,” says Chi. “However, there are places that don’t have the industrial composting facilities needed to start this decomposition. Putting it into a landfill is not enough.”
to work with customers to find which materials would best accommodate the customer’s requirements, ensuring a satisfactory outcome for the business and the environment. Chi explains one example where Huhtamaki Foodservice EAO worked with its client to reach a sustainable and economically viable solution. “Our customer’s goal was to find an alternative to plastics by 2020. We were able to work with our customer, understand their requirements, and from there we ran supplier selection, trials, product samples and negotiated the commercial terms. The sourcing and product development process ran within our customer’s specific time line and, by the end, we were able to remove Huhtamaki is also educating customers around achieving sustainability
plastics in that supply chain.” The demand for sustainability is ris-
whilst maintaining high standards for
ing as consumers are unable to ignore
product packaging. The Packaging
the realities of a future reliant on sin-
for Good programme focuses on
gle use products manufactured from
four key themes – people, packaging,
pollutive materials.
supply chain and operations – to offer
“Sustainability is on top of the agenda
Huhtamaki’s expertise and guidance
for Huhtamaki,” summarises Chi. “In
for a company’s CSR goals and within
terms of changing from unsustainable to
Huhtamaki itself.
more sustainable alternatives, there is
By educating consumers on the reali-
no challenge – it simply must be done.”
ties of sustainable materials, Huhtamaki Foodservice EAO segment is able a si a .busi ne ssc h ief. com
117
118
DECEMBER 2019
RHENUS INDONESIA 119
OVERCOMING SUPPLY CHAIN CHALLENGES IN INDONESIA WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
CAROLINE WHITELEY
a si a .busi ne ssc h ief. com
P T. R H E N U S P R O J E C T L O G I S T I C S I N D O N E S I A
SARI SAFIANTI, MANAGING DIRECTOR OF RHENUS PROJECT LOGISTICS INDONESIA, DISCUSSES HER COMPANY’S SUPPLY CHAIN STRATEGY IN THE FACE OF LIMITED IT INFRASTRUCTURE IN THE COUNTRY
A
s an international freight and logistics forwarding company, Rhenus Project Logistics Indonesia is part of Rhenus
Group and specialises in air, ocean and road freight. Operating as just one component of the larger 120
Rhenus Logistics Worldwide Organisation, Rhenus holds locations all over the globe. Following the company’s expansion into Indonesia in 2017, Rhenus’ headquarters is located in the capital of the country, Jakarta; it has an additional two offices in Semarang and Surabaya. The company offers a project logistics service which focuses on transporting heavy equipment and building parts, for the oil and gas, mining, power, electrical and construction industries. However, Sari Safianti, Managing Director of Rhenus Indonesia, recognises that the nation is a challenging market to operate in. “Indonesia is a developing country where operations don’t run as easily as they do in Europe,” she admits. “When you invest money in Indonesia, it’s important to remember that you’re not likely to see a return on the investment for at least six months to a year.” DECEMBER 2019
121
With a population of over 270mn, Indonesia is the fourth most populous country in the world. Safianti affirms one of the biggest challenges to overcome is finding a way to manage the 17,500 islands in Indonesia. “We have to ensure we’re granted logistics custom clearance more quickly. In Europe, this can be completed within hours, however, in Indonesia, it could take between five days and two weeks,” she explains. “This is especially true if there’s any issues with the documents or discrepancies on the physical goods.” a si a .busi ne ssc h ief. com
P T. R H E N U S P R O J E C T L O G I S T I C S I N D O N E S I A
“IT’S UP TO US TO KNOW WHAT THEIR NEEDS ARE AND HOW WE CAN BEST FULFIL THEIR REQUIREMENTS TO DELIVER ON OUR PROMISES” — Sari Safianti, Managing Director of Rhenus Indonesia
122
DECEMBER 2019
CLICK TO WATCH : ‘WOMEN IN BREAKBULK-BEYOND LOGISTICS: WIDE RANGE OF OPPORTUNITIES FOR WOMEN IN PROJECT CARGO’ 123 Due to technology having a sig-
check where they are at all times but
nificant influence on how businesses
unfortunately, this isn’t supported
conduct operations globally, most
for all areas in Indonesia yet.” With
companies are keen to implement new
Indonesia recognised as one of the
processes whenever they can. With its
world’s most populous countries, the
European locations kitted out with the
potential ability that technology has in
latest IT infrastructure, Safianti admits
the country is staggering. With artificial
Rhenus Indonesia isn’t where it needs
intelligence, machine learning and big
to be from a technological standpoint.
data playing a prominent role in the
“Indonesia still has work to do. We’re
operations of a vast number of supply
not there yet in comparison to some of
chains worldwide, Rhenus has seen a
our operations in European countries,”
clear gap to its European counterparts
she explains. “For example, equipping
open up. “Indonesia has begun digitis-
GPS on trucks is an important tool. We
ing its supply chains, but it is mostly
want to control our trucks and time
centralised in Jakarta at the moment,” a si a .busi ne ssc h ief. com
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Learn More karana.co.id
+62-21-43934356 FREIGHT FORWARDING & CONTAINER DEPOT
2017
Year founded
€6.5mn+ Approximate Revenue
15
Number of employees DECEMBER 2019
explains Safianti. “There’s a lot of startup
to deliver on our promises. Once our
companies that are beginning to do well
customers recognise our commitment
in Indonesia. However, leveraging tech-
towards them, they’ll want to continue
nology remains a big task for the country.”
to work with us. With this mutual trust
Rhenus values customer-centricity
in place, I believe this will help us to
and delivers comprehensive project
achieve long-term sustainability.”
solutions tailored to ensure the needs
Growth is an important focus area for
of its customers are met. “We like to
Safianti. With just six employees a year
focus on select industrial sectors to
ago, Rhenus Indonesia has since dou-
understand as much as we can about
bled the number of its workers. “The
a customer,” says Safianti. “It’s up to us
team is already growing significantly,”
to know what their needs are and how
she says. “We have a number of differ-
we can best fulfil their requirements
ent locations of the project as well as of 125
E XE CU T I VE PRO FI LE
Sari Safianti Sari Safianti started her career in logistics at the age of 18, and at the bottom. Despite the few women in the industry, her measurable performance rapidly led her to work with different international companies at the top level. She is well known for being one of the few women leaders in Indonesia with over 25 years of experience in logistics. In 2019, she received the “Indonesia Woman Leadership Award” from CMO Asia. Her experience is known to be broad in the logistics industry and covers automotive, FMCG, semiconductor, chemical, cosmetics, high-end retail, manufacturing, geothermal, power, engineering and construction.
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P T. R H E N U S P R O J E C T L O G I S T I C S I N D O N E S I A
126
DECEMBER 2019
“WE’RE OPTIMISTS AND HAVE OUR OWN TIMELINE OF WHAT WE WANT TO ACHIEVE IN THE NEAR FUTURE” — Sari Safianti, Managing Director of Rhenus Indonesia
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127
P T. R H E N U S P R O J E C T L O G I S T I C S I N D O N E S I A
our subsidiary companies. We operate all over Indonesia.” Rhenus Indonesia has developed a strategic partnership with PT Karana Line to drive operations forward. Safianti believes in the importance of establishing mutually beneficial business relationships and looks for “trust, communication, commitment, and consistency” when seeking to begin a new collaboration. Looking to the future, Safianti has a clear vision of the position she 128
expects her firm to be in over the next
DECEMBER 2019
129
few years. “We’re optimists and have
implemented rapidly on a global scale,
our own timeline of what we want to
it’s clear the industry is moving in that
achieve in the near future. Ultimately,
direction. I expect that the combination
we want to ensure we become more
of technology and the supply chain will
sustainable,” she affirms. Safianti
drive efficiency forward and save com-
expects the supply chain space in
panies money. It’s only a matter of time
Indonesia to continue to accelerate as
before it’s fully embraced here too.”
technology becomes a bigger player in the Indonesian market. “The supply chain industry is growing and I expect it to continue, not just in Indonesia but worldwide too,” she says. “At the moment, Indonesia is very traditional. However, with digitisation being a si a .busi ne ssc h ief. com
130
Adopting an efficient approach in the energy space WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
RYAN HALL
DECEMBER 2019
131
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SAPURA ENERGY BERHAD
Raphael Siri, CEO of Sapura Drilling and SVP Performance & Risk for the Sapura Energy Group, discusses the importance of generating long-term value from its staff through a focused, people management approach
A
s the world’s largest tender rig owner and operator, with nearly five decades of drilling experience in Asia, the Middle East,
Africa and South America, Sapura Drilling is used to 132
keeping up with the market and staying at the forefront of the latest industry trends. With a comprehensive continuous improvement strategy in mind, Raphael Siri, CEO of Sapura Drilling, believes that operating with an efficient approach remains the key ingredient to success. “We want to ensure that everyone is empowered to make the job as efficient as possible,” he says. “Efficiency comes with care. Our primary aim is to be proactive and put procedures in place that avoid incidents happening in the first place, including safety ones.” As a group, Sapura Energy places significant value on people development and has set up several training initiatives to develop its staff’s skills. “There are two components to training our staff in the Drilling business; offshore and onshore,” says DECEMBER 2019
1972
Year founded
Leader in tender-assist drilling
Winner
of multiple safety and performance awards 133
Siri. “In terms of offshore, we have a comprehensive training matrix that is mandatory. For example, if you don’t complete your survival training then you won’t be able to fly in the helicopter, which ultimately means you can’t work.” “Secondly, we require our workers to complete company-specific training that allows them to perform their jobs in the safest and most efficient manner,” he explains. “Some of the training includes permit-to-work, confined space and ethics and compliance. We also offer more specific technical a si a .busi ne ssc h ief. com
SAPURA ENERGY BERHAD
training based on an employee’s position that will benefit them on a daily basis.” Siri affirms that onshore workers also have a training matrix, albeit less structured. “It’s more centred around observing the changing market rather than training itself. For example, for an employee working in finance, they would attend a tax conference to uncover the latest trends in the areas most relevant to them. There isn’t one method that suits all – we tailor training based on company 134
and individual needs.” “As part of the Sapura Energy Group, Sapura Drilling also benefits from programmes run by the parent company,” explains Siri. “One of the most recent training programmes offered under the Sapura Energy Group was the Master of Business Administration conducted in partnership with MIT Sloan School of Management. Some employees are currently taking this programme and is just one of the examples of our versatile onshore training programme.” With its continuous improvement strategy at the forefront of decisionmaking, another area of focus for Sapura Drilling is the introduction of DECEMBER 2019
“ We want to ensure that everyone is empowered to make the job as efficient as possible” — Raphael Siri CEO, Sapura Drilling and SVP Performance & Risk, Sapura Energy Group
CLICK TO WATCH : ‘SAPURA SEMI-TENDER IN ACTION’ 135 technology. Automation is empowering companies in all industries to accelerate their operations. In terms of Sapura Drilling, this means enhancing safety processes too. “Automation allows us to preempt equipment failures and plan more efficiently,” he says. However, Siri affirms there are limitations to consider as the world begins to embrace new technology and transform operations. “One of the biggest challenges we face is that we don’t always work in countries where they have sophisticated phone systems and landlines. All our units run on a satellite,” he explains. a si a .busi ne ssc h ief. com
SAPURA ENERGY BERHAD
136
“But the world is changing. With all this
partner when seeking to form a long-
data at our fingertips now, we must ask
term business relationship. “The first
ourselves: ‘how do we generate the
thing I look for in a potential partner is
most value we can?’ Although gather-
their core values,” he explains. “They
ing data is a good strategy to have, if
have to be in line with ours in order for
you don’t do anything with it then it’s
the partnership to work. The corporate
just a waste of time.”
values have been our beacon for suc-
In a bid to expand operations, com-
cess. We are guided by honesty, trust
panies are increasingly looking to
and respect for all. We achieve our busi-
establish strategic partnerships with
ness objectives by being safe, agile and
one another to achieve mutual growth.
professional and continuously strive to
Siri points to what he looks for in a
meet our stakeholders’ expectations.”
DECEMBER 2019
“ There isn’t one method that suits all, we tailor training based on company and individual needs” — Raphael Siri CEO, Sapura Drilling and SVP Performance & Risk, Sapura Energy Group
The company’s tender rigs can be used for global operations in waters as shallow as 30ft to as deep as 6,000ft. Sapura Drilling uses two different types of Tender Assist Drilling rigs (TADs); a tender barge and a semitender rig. While both units can carry the same equipment, the semi-tender is capable of operating in deeper waters and in harsher environments. The TADs are usually stationed next to the platform, with its drilling package then lifted onto the platform. One of the major benefits of a TAD drilling rig
E XE CU T I VE PRO FI LE
Raphael Siri Raphael Siri is a people-oriented leader and a champion of care management philosophy. Under his leadership, Siri successfully maintained and nurtured a caring culture that helped the company weather the downturn with a team of dedicated and happy employees whom he regards as family. Siri emphasises goal-oriented performance and demands that people deliver on their promises through teamwork, adherence to policies and processes and continuous improvement. Siri has a strong cultural awareness thanks to his experience as a leader in nine different countries. He holds a Master’s in Applied Mathematics from the Université de Nice Sophia Antipolis.
a si a .busi ne ssc h ief. com
137
SAPURA ENERGY
Inspired imaginative design D’YAKIN is a client focused Organisation which specializes in comprehensive interior design, architecture, turnkey fit-out, construction and project management. Since our establishment in 1989, we have completed an extensive variety of projects and have built a strong relationship with large based of local and multi-national corporations. Learn More
dyakin.com
139 is the ability to self-raise, remove its own drilling package and then rig-up the same package on another platform, resulting in greater efficiency and sustainability for the clients. While the importance of operating sustainably is vital to all companies’ future development, Siri believes sustainability at Sapura Drilling extends further than the traditional meaning. “It’s about ensuring our employee’s lives are as sustainable as possible,” he explains. “Do we pay them correctly and are we developing their communi-
“ The first thing I look for in a potential partner is their core values. They have to be in line with ours in order for the partnership to work” — Raphael Siri CEO, Sapura Drilling and SVP Performance & Risk, Sapura Energy Group
ties in the right way? We have to train a si a .busi ne ssc h ief. com
SAPURA ENERGY BERHAD
C O M PA N Y FACT S
• Close to five decades of offshore drilling experience in Asia, Middle East, Africa and South America • Pioneer of semisubmersible tenderassist drilling rig
140
• World-class safety standard — longest safety running streak – nearly 14 years without a lost time injury
DECEMBER 2019
people properly and give them the knowledge to succeed long-term.” Siri adds that Sapura Drilling takes its sustainability initiatives on the financial and environmental side seriously too. “We’re not taking any risks that could materially hinder the company. As we operate in a range of countries with lots of employees, we have a duty of care,” says Siri. “We’re also trying to reduce our impact on the environment by questioning everything from the ground up to ensure we’re doing all we can.”
141
Looking to the future, Siri has a clear vision of the direction he aims for Sapura Drilling to be moving towards over the next few years. “We want to ensure we continue to develop into a sustainable and a reliable partner for our clients,” he summarises. “We also hope to grow in terms of our fleet, but this depends on mergers, acquisitions or newbuilds, which will be centred around the direction the market takes. Overall, we want to continue to be recognised worldwide. It’s about driving recognition and reliability as we move forward.”
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142
Total Solar: powering future horizons DECEMBER 2019
WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
RYAN HALL
143
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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )
How Total is supporting the growth of the distributed generation of solar power across Southeast Asia, bringing the independence of sustainable energy to thousands of new customers
T
otal Solar Distributed Generation (DG) was formed in 2018, drawing on a decade-long commitment to solar power
stretching back to 1972, when parent company Total set up Total Énergie Développement (TED), 144
which engineered its first solar panels. Total Solar is now the leading provider of solar solutions for commercial and industrial customers with $2bn deployed worldwide and services customers that include global firms such as Siemens, Google, Toyota, Ford, Microsoft, FedEx and Walmart. Spearheading the company’s efforts to advance its global footprint in Southeast Asia, Total Solar Distributed Generation’s CEO (SEA) Gavin Adda brings a decade of experience in the industry from a previous role working on major projects for Samsung. “I could see big potential for the future here in Southeast Asia,” recalls Adda. “There are many islands with complicated terrain where it’s difficult to put a grid down. You’ve got great solar resources - and the exciting thing is that you can co-locate it and put solar where the usage is. DECEMBER 2019
145
1919
Year founded
100,000 Number of employees
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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )
“ What’s happening with solar, especially on the rooftop side of the business, is that we’re flipping the model round. That disruption is the revolution that’s 146 happening in power” — Gavin Adda, CEO, Total Solar Distributed Generation (SEA)
Instead of building a big solar plant in the middle of the desert and then arranging transmission and distribution before retail to a customer, you can put solar right on top of somebody’s roof, and cut costs and ease grid congestion at the same time.” Indonesia has more than 17,000 islands, and the Philippines over 7,000, in a part of the world where diesel is an expensive solution for generating power. Adda realised what a great opportunity this was to start a rooftop solar business. “When I got here, no one was doing this,” he remembers. “I created a startup which was merged into Total in 2017, and that has become Total Solar Distributed Generation, Southeast Asia.” Innovation has played a big part in Adda’s journey of developing a solar offering in Southeast Asia. “When I was joining the business, major companies such as BP, Shell and ourselves were taking a good look at renewables,” he reveals. With the core elements of businesses like these changing, it was important for Total to add new capabilities and become nimble in its approach. “I’d seen the same thing happening in
DECEMBER 2019
CLICK TO WATCH : ‘TOTAL, COMMITTED TO SOLAR ENERGY’ 147 the US with companies that had been
Adda notes a shift from a B2G
very successful at selling power to a
(Business to Government) to a B2B
utility or to a government,” he explains.
model boosting the number of custom-
“If you’re going to sell power in places
ers and requiring a new approach;
like Indonesia and Vietnam, you’ve
comparable to a phase the IT industry
only got one choice, sell to that one
went through 20 years ago when the
entity. There could be hundreds of
scope of the market grew for the likes
different developers trying to sell to
of Oracle and SAP. “I was part of that
that company, so that company gets
process of helping IT companies build
to push everyone’s price down. But
B2B capabilities,” he recalls. “It was
what’s happening with solar, especially
the same at Samsung building B2B in
on the rooftop side of the business,
the consumer electronics. We have
is that we’re flipping the model round.
the same dynamism at Total Solar DG;
That disruption is the revolution that’s
the passion to build a new business
happening in power.”
model as a startup with extraordinary a si a .busi ne ssc h ief. com
T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )
CLICK TO WATCH : ‘TOTAL SOLAR COMMITTED TO BETTER ENERGY’ 148 resources. Bringing that passion, drive
Bollore, Renault-Nissan and Danone
and focus has been really important for
think twice before signing up to a long-
our expansion in Southeast Asia.”
term contract with a firm that’s only
Adda points out this is something
two years down the track; there’s no
Total has been doing with power assets
chance that this company is going to
for the past century, and says it is
be around in 20 years, they’re going
what sets the company apart from
to be bought and sold multiple times.”
the newcomers. “We are, in our DNA,
Adda warns that while a solar system
a developer and operator of energy
can save 10-20% on your power bill
power assets,” says Adda. “Companies
over the contract lifetime, you really
are jumping into solar but they don’t
need a long-term partner to help build
actually have any power experience.
a safe system . “We build systems that
They’re not going to be around for 20
are safer and perform better for longer;
years; and most of our contracts are for
you really need to have somebody that
20 years. That’s why companies like
you can trust on your roof.”
DECEMBER 2019
Adda believes that solar generation
market, we see the opportunity for
is just the beginning. “Storage, energy
discounts between 10-30% and
efficiency and exciting new things are
then this drives a meaningful impact
coming that will enable independence
on our carbon footprint. We’ve done
for our customers.” Along with that
one project for a Total affiliate in
independence comes the chance to
Singapore with a 1.2MW rooftop,
create a sustainable model for power
which will be equivalent to them
generation, but to do that it has to be
planting 8,000 trees a year for 20
economically viable, Adda urges. “It will
years. That’s a massive impact and
be a sustainable business if it makes
among many interesting ventures for
sense. And for us that’s really about
Total. We’re now implementing solar
cost reduction,” he explains. “Most of
systems on 5,500 facilities around
our customers are focused primarily
the world, including more than 4,000
on investing in solar. Depending on the
service stations.”
149
E XE CU T I VE PRO FI LE
Gavin Adda Gavin Adda began his career in the early days of internet startups where he learned the value of a nimble approach to business. Experienced in tech, his previous sales roles at Oracle and Samsung underpin his skills in the B2B space. “I’m capable of taking a business, making sure that it’s reaching out, and making the right connections with corporate, commercial and industrial companies,” he confirms. Adda appreciates the power of digitisation as a transformative catalyst for business. A decade spent working in Solar for Samsung, solar panel manufacturer REC, and his own startup CleanTech Solar, leaves him well placed to improve Total Solar DG’s operations across Southeast Asia while driving the innovation that makes solar energy a commercial and sustainable proposition for the future.
a si a .busi ne ssc h ief. com
T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )
Solar energy solutions for a greener earth SolarGy Pte Ltd is one of the leading professional system integrators of solar PV systems based in Singapore. We have over twenty years of experience in electrical installations and building architecture. Learn More
151 Total Solar DG also supports the
to realise its ambitions and are, says
Total Carbon Neutrality Ventures
Adda, the “fundamental bedrock” upon
(TCNV) fund - a $400mn initiative
which the business is being built.
aimed at reducing carbon footprint
Among these, SolarGy, based in
with clean/green energy. “We’re work-
Singapore is a veteran of the industry
ing with some of our partners on hybrid
working on a wide range of different
solar battery projects and passing
projects for the Singaporean govern-
them through the Ventures team to
ment. “We’re seeing more customers
help them with investment,” reveals
keen to make power purchase agree-
Adda. “It’s exciting that TCNV is aim-
ments (PPAs) rather than buy a solar
ing to bring on board companies with
system,” says Adda. “We’re work-
disruptive new technologies that we
ing with SolarGy to implement that
can implement in our own projects.”
approach and attract new customers.
Local partnerships in countries across
We are also exploring several partner-
Southeast Asia are vital for Total Solar
ships with Saft, a company owned a si a .busi ne ssc h ief. com
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Total’s commitment to Solar “Over the next 20 years, electricity demand will increase faster than the demand for energy as a whole. In order to meet this growing need, tackle the challenges of climate change and comply with the International Energy Agency’s 2°C scenario, we have made it our ambition for low-carbon businesses to account for nearly 20% of our portfolio in 20 years. We are already actively
DECEMBER 2019
participating in the development of renewable energies, especially solar. With operations spanning the manufacture of highefficiency photovoltaic panels, ground-based power plants, decentralised systems, storage solutions and marketing to end-customers, we are present across the entire value chain and fast-tracking the deployment of solar technology.”
by Total, that supplies batteries to the transport and aviation sectors.” Adda laments that awareness of the fact that the cost of power from solar is cheaper than the grid is still low, but adoption is gathering pace. “We’re seeing the penny drop for companies in the US and Europe, and they’re now starting to implement through their supply chains too, leading to some very large projects. Across Southeast Asia, large projects are happening in one go. Previously, you would see maybe a $500,000 project happen, now we’re dealing with $30mn portfolios.” Working with Chandra Asri, the biggest petrochemical company in Indonesia, has been a real breakthrough for Total Solar DG. “It was the first rooftop PPA in the country. Up until then everyone was buying their power from the utility PLN,” says Adda. “We were up and running within three months and it shows what’s possible in Indonesia. The fact that we were able to find a solution for a plant with such sensitive machinery shows the capabilities of solar to make a difference to our industrial customers.” The company has also recently signed a contract to a si a .busi ne ssc h ief. com
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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )
supply the biggest single-rooftop solar array in Thailand for a 7MW project. Elsewhere, in Cambodia, a solar storage hybrid project is underway on Koh Rong Sanloem island. “We will be taking that island off diesel, and providing clean power, to various resorts, leisure companies and surrounding villages,” he confirms. Total Solar is also providing rooftop solar systems for three shopping malls operated by Gaisano Capital in Luzon and the Visayas in the 154
Philippines. “We’re reaching out and growing awareness around the impact solar can have across a much wider community,” says Adda. With a combined capacity of 1.2MW, the resulting
“ We build systems that are safer and perform better for longer; you really need to have somebody that you can trust on your roof” — Gavin Adda, CEO, Total Solar Distributed Generation (SEA) DECEMBER 2019
carbon footprint reduction is equivalent to planting 3,500 trees each year. The photovoltaic systems are expected to cover over 30% of Gaisano’s power needs and will slash its energy bill by more than 15%. Southeast Asia provides one of the fastest growing global solar markets for Total, where the company is committed to providing cleaner, greener and cheaper power. Adda’s team is also
155
looking at Japan, Australia, Myanmar
into growing the people, the platform
and Vietnam - potentially huge markets
and the relationships that enable us
with growing populations and massive
to build a multi-billion-dollar business,
demand. “The challenge will be to
move the needle and make a positive
scale the business as quickly as the
impact with solar and renewables.”
market is scaling and develop our battery storage portfolio,” says Adda. “We’re expecting to double in size for the next four years, just to keep up with that growth. Total can make these long-term bets, and put the investment a si a .busi ne ssc h ief. com
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HOW THE COMBINATION OF 5G,AI, BIG DATA AND IoT IS SET TO CHANGE EVERYTHING DECEMBER 2019
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GSMA
The confluence of high internet speeds, big data, the Internet of Things, analytics and artificial intelligence will fundamentally alter the way we live and work, intelligently connecting virtually every device, making our cities smarter and our lives easier and more productive
I
ntelligent Connectivity enables transformational new capabilities in transport, entertainment, industry and much
more. The combination of 5G, artificial intelligence 158
(AI), smart platforms and the Internet of Things (IoT) form the basis of what we call ‘Intelligent Connectivity’. With more than 5.1bn unique subscribers and nearly 9bn connections globally, mobile is already one of the most widely deployed technology platforms ever. However, Intelligent Connectivity takes this further and marks the beginning of an era of highly contextualised and personalised experiences, underpinned by ubiquitous hyper connectivity. It is set to impact almost every aspect of our daily lives from the way we consume entertainment to the way in which we learn and interact with colleagues. It will give people the information they need in an instant making our lives more productive and efficient. It will impact how entire industries innovate and operate, how societies interact and thrive and how economies flourish. DECEMBER 2019
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“ We will see smart platforms powered by AI and machine learning will enable us to make improved decisions and deliver higher quality products and services.” — Julian Gorman, Head of Asia Pacific, GSMA
DECEMBER 2019
CLICK TO WATCH : ‘GSMA APAC AT MWC BARCELONA 2019’ 161 We will watch live sports coverage in ultra-high definition via Augmented or Virtual Reality headsets and see the game from an athlete’s perspective; our cities will deploy traffic control systems that use 5G connectivity to instruct vehicles when to slow down and when to accelerate removing the need for traffic lights and speed cameras. We will see smart platforms powered by AI and machine learning will enable us to make improved decisions and deliver higher quality products and services.
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GSMA
CLICK TO WATCH : ‘GSMA TECH4GIRLS ICT DAY HK WORKSHOP’ 162 5G is already on the way with commercial launches this year in the United States, China, South Korea and the UAE. GSMA Intelligence forecasts that there will be more than 1.3 bn 5G connections globally by 2025, covering 40% of the global population. 5G networks will underpin this revolution. It is an opportunity to create an agile, purpose-built network tailored to the different needs of citizens and the economy. It will improve network capacity, throughput and responsiveness. However, it is imperative that all stakeholders work together to ensure DECEMBER 2019
“ It is imperative that all stakeholders work together to ensure that 5G is successfully standardised, regulated and brought to market” — Julian Gorman, Head of Asia Pacific, GSMA
that 5G is successfully standardised, regulated and brought to market. Underpinned by hyper connectivity and low power wide area IoT networks, the fusion of these groundbreaking technologies will change everything, improving our lives in many different ways and intelligently connecting everyone and everything to better future.
E XE CU T I VE PRO FI LE
Julian Gorman Julian is the Head of Asia Pacific for the GSMA, leading a highly experienced cross functional team to advance the impact, growth and sustainability of digital economies by collaboration between the mobile industry, policy makers and ecosystem. He is a global telecommunications executive with over 20 years of commercial and marketing experience across Wholesale, Business, Regulatory, Policy and Digital Transformation. He has pioneered new digital partnerships and business units in mature and emerging markets across Africa, Europe, Australia and Asia with industry leaders including Vodafone, MTN and Ooredoo. As advisor to management executive teams and boards he has extensive insight and relationships to support collaboration and delivery of industry alignment. He has been recognised for his leadership in digital innovation, digital women, health and agriculture services with industry awards and grants. Julian has degrees in Mechanical Engineering and Law from Australia.
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Department of Education and Training: learning through tech WRITTEN BY
WILLIAM SMITH PRODUCED BY
STUART IRVING
DECEMBER 2019
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D E PA R T M E N T O F E D U C AT I O N A N D T R A I N I N G
The Department of Education and Training’s CIO, Elizabeth Wilson, discusses the technological approach improving the quality and accessibility of education
T
he Victorian Department of Education and Training (DET) is responsible for the Victorian State education system. “The
Department’s remit goes from early childhood through to higher education. For early childhood and higher education, the role is one of govern166
ance, policy development, programme delivery and allocation of funding to service providers. In the Kindergarten to Year 12 area, the Department also operates almost 1,600 schools. We are a large, complex organisation, and we rely on technology and information to support both teaching and learning and evidence-based policy development.” As CIO, Wilson prizes the role of culture in effecting a successful digital transformation. “We can provide the best technology in the world, but without an inquiring, collaborative culture, it will achieve very little. The role of the CIO should be as much about establishing the right culture as it is about building IT strategies. As CIOs, we have to look more holistically at building capability, and technology is only one component. To do this, we need to have the right mindset, the ability to collaborate DECEMBER 2019
“ The role of the CIO should be as much about establishing the right culture as it is about building IT strategies” — Elizabeth Wilson, CIO, Victorian Department of Education and Training
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and we need to consider opportunities
The focus on culture has had demon-
for innovation in what and how we do
strable effects, evidenced by employee
things.” For Wilson, the question of cul-
engagement surveys and customer
ture is not one that is separate from her
feedback. An important element in
other responsibilities; rather it plays
changing culture is diversity. “Diversity
into and informs them. “It’s important to
is extremely important to me. There
take a holistic approach when building
is a considerable focus on diversity in
information management technology
the Department. This focus is across
capability. We have four enabling pillars:
the Victorian public service, with the
culture; the technology and information
Workforce Diversity and Inclusion
strategies; people capability; and the
Strategy 2017-2020, which focuses
operating model. You need to look at
on inclusive and diverse leadership,
all four elements – there’s no point in
workforce flexibility, cultural diversity
doing one without doing the others.”
and disability. I always consider diversity
DECEMBER 2019
CLICK TO WATCH : ‘EDUCATION WEEK 2019 –RAIL ACADEMY NEWPORT’ 169
in all its forms when recruiting leader-
says. “It’s incumbent on the education
ship roles, and this has probably had
system to incorporate the use of tech-
more impact on the culture of the IMT
nology into the everyday classroom.”
Division than anything. Without diver-
Technology plays a more active role as
sity in our workforce and diversity of
well, such as in the provision of data
thought, innovation is not possible.”
to personalise learning experiences.
All of this is in service of ensuring
“Students learn in different ways and
education in the State is the best it can
the use of technology in formative
be. Wilson sees a pivotal role for tech-
assessment provides the ability for
nology to play in the classroom, with
teachers to understand this and to
one of the key benefits coming purely
respond,” Wilson notes. “In the class-
through its presence. “Students will
room, the use of technology not only
be using technology no matter what
provides engaging, immersive experi-
career they pursue in the future,” she
ences for students, it enables access a si a .busi ne ssc h ief. com
IBM Services is partnering with the world’s leading companies to reinvent their business through technology. Accelerating the journey to secure, available and scalable hybrid multicloud with proven methods (to modernise, mitigate and integrate) Injecting industry expertise to design personlised customer experience Designing and managing technology-agnostic infrastructures that unlock growth Ensuring business continuity through proactive cyber resilience Re-engineer business processes with automation, AI, IoT & blockchain Co-creating new business models that embrace digital disruption Revolutionising IT operations and support for the future with innovation, AI and automation Harnessing data with applied AI and machine learning for competitive advantage Learn more at ibm.com/case-study/fis/au
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Development Executive, Banking & Payments, International Markets FIS
Our resilient data centres helped FIS mitigate risk and downtime to deliver ‘always on’ services to their clients. Malcolm Pope
Southern Region Portfolio Executive, IBM
FIS partnered with IBM Services to ensure business continuity with a cyber-resilient IT infrastructure. They worked together to build two PCI DSS compliant data centres that allowed FIS to switch production between them to deliver exceptional uninterrupted customer service, anytime every time. Great partnerships lead to great outcomes. IBM and the IBM Logos are trademarks of IBM Corp registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/ copytrade.shtml. Other product, company or service names may be trademarks or service marks of others. © Copyright IBM Australia Limited. © Copyright IBM Corporation 2019. All Rights Reserved
D E PA R T M E N T O F E D U C AT I O N A N D T R A I N I N G
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to education more equitable than it has
factors and respond by providing the
ever been.
appropriate support. Digital is all about
Information is a big focus for DET, guiding an evidence-based approach
data and the ability to manage information and harness its power.”
to policy making. “We collect a con-
Directly and positively impacting
siderable amount of information that
on learning is gamification, as Wilson
is used to inform policy and to assess
explains. “Learning needs to be engag-
whether specific programmes are
ing and fun for students. Technology in
effective in improving outcomes,” says
the classroom is great for enabling that.
Wilson. “We are also doing more in the
Students will become disengaged with
IoT space now. In looking at schools
their education if they are not able to
that are not using online resources
relate to what they are learning and the
we can help identify whether there is
use of technology has the potential to
a correlation to other environmental
represent what is real life and familiar
DECEMBER 2019
for a student.” DET uses one of the world’s most popular games, in the form of Minecraft, to engage students in learning that provides relevance to them and is linked to curriculum outcomes. “We have a Minecraft Education Edition deployment where one of our virtual learning coaches worked with Minecraft developers in the US to support his development of Minecraft Mini Melbourne and the Archeology Adventure. That was in partnership with the Melbourne Metro Tunnel Project that had all the maps
E XE CU T I VE PRO FI LE
Elizabeth Wilson Elizabeth is a change leader with experience working with executive groups and building high performing teams. She is an innovative leader in applying technology as a transformation agent for business change and is passionate about gender diversity in technology and education. Elizabeth’s current role is CIO at the Department of Education and Training, Victoria. Elizabeth has initiated a program to uplift the Department’s technology capability to support new digital teaching, learning and corporate environments. The program incorporates a platform architecture based approach supported by micro services, moving to DEVOPS delivery and transforming people capability and culture.
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POWERING YOUR DIGITAL TRANSFORMATION
BRAIN POWER MEETS TECH POWER
ENABLING EDUCATION TO BE FASTER & SMARTER
www.asggroup.com.au
“ Technology is able to make access to education more equitable than it’s ever been before” — Elizabeth Wilson, CIO, Victorian Department of Education and Training
to engage with leading digital teaching practice on a global scale, and receive recognition for their use of the technology in the classroom.” IBM has partnered with the Department to implement the Connected Learners Program. The engagement of a large-scale delivery partner with significant prior experience in IT infrastructure and logistics enabled the programme to successfully deliver
of Melbourne, including subterranean
a large volume of new and enhanced
Melbourne. Initiatives like this help
equipment across geographically
keep students engaged and having fun
dispersed sites. This included the
while they’re learning.”
deployment and installation of addi-
To deliver its technology strategies,
tional wireless access points in
DET has had the support of a num-
schools and the delivery and installa-
ber of partners. Cisco and IBM have
tion of the largest global deployment of
delivered collaboration capability with
Webex smartboards to every Victorian
a five-year adoption plan to support
government school. The partnership
teachers in the use of their technology.
also incorporates a five-year adop-
“We have the largest global deploy-
tion programme to support teachers
ment of Webex Teams in education,
in the use of the smartboards and
which enables virtual classrooms. This
Webex Teamapplication in the class-
improves the equity factor in schools,
room – creating the ability for schools
with rural and regional schools able to
and students to collaborate and cre-
take part in virtual visits to museums
ate a virtual learning environment.
and access additional learning oppor-
Consultancy, Deloitte, has also
tunities such as languages. It also
worked with DET on a capability
provides opportunities for our teachers
review and frameworks to inform a si a .busi ne ssc h ief. com
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DECEMBER 2019
C OM PA N Y FACT S
• DET has the largest global deployment of Webex Teams in education The department operates around 1,600 schools serving Kindergarten to Year 12
the future information management and technology strategies at the organisation. The ASG Group, meanwhile, manages the Department’s Oracle environment that supports Finance, Payroll and Procurement functions. “DET processes one of the largest payrolls in Victoria, with over 132,000 payment summaries issued last financial year. The payroll includes approximately 70,000 teachers as well as staff at two other government departments. ASG, in addition to providing managed services for Department’s Finance, HR, Payroll and Procurement systems, provides the Department with managed ICT services supporting the Department’s core Microsoft based technologies and the Department’s ICT security services.” And, as DET carries out its cloudfirst investment principle, it is pivoting away from infrastructure investment and management. As Wilson explains: “We’re increasingly moving up the stack from infrastructure as a service through platform as a service, and some software as a service. The Department has recently selected a si a .busi ne ssc h ief. com
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D E PA R T M E N T O F E D U C AT I O N A N D T R A I N I N G
2015
Year founded
$14.7bn+ Revenue in Australian dollars
68,000+
Number of full-time employees
Salesforce as the enterprise platform for customer relationship management. The first implementation of Salesforce will be to support the Kindergarten Information Management System. Department staff are currently working with Salesforce to build internal capability on the platform and plans are underway to transition other CRM requirements to the platform. The Department has also selected MuleSoft, another Salesforce company, to meet its integration platform needs. The recent acquisition of Tableau by
“ It’s about diversity. Without this there is no innovation” — Elizabeth Wilson, CIO, Victorian Department of Education and Training
179
Salesforce, which is also used within
children and families. To achieve this,
the Department, means Salesforce is
information from the Department of
one of the largest strategic technol-
Health and Human Services and other
ogy partners for the Department. The
children and family service providers is
Department is excited to be working
being linked to give service providers
with Salesforce to optimise its agility
better insight into that particular child or
and responsiveness across a very
family circumstances.” Initiatives such
complex environment.”
as these are focused on fulfilling DET’s
Currently, DET is leading a pro-
overall mission: “that is making sure
gramme to improve services to children
that Victorians have equitable access
and families through the use of technol-
to quality education and training from
ogy. “This encompasses the linkage
birth to adulthood.”
of information about children to better inform services that are delivered to a si a .busi ne ssc h ief. com
180
novative solutions to real-world problems WRITTEN BY
RACHAEL DAVIS PRODUCED BY
STUART IRVING
DECEMBER 2019
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INLOOP
Payment solution provider InLoop’s central concept is that “technology lets you solve problems that were previously impossible to solve,” as CTO, Zubin Appoo, explains
M
aking the complex simple for businesses, clients, schools, parents, healthcare provid-
ers and patients, InLoop provides simple, effective
and secure payment solutions across three brands: Flexischools, LanternPay and Nuonic. Zubin Appoo joined InLoop in 2018, following a 182
15-year tenure as Innovation Manager at WiseTech Global. With an enthusiasm for the power of education and the potential for technology to deliver better educational outcomes, he was particularly interested in the work that Flexischools does to revolutionise and simplify payment strategies for educational peripherals, such as school lunches, events and uniforms. Currently focusing primarily on Flexischools as his area of expertise, Appoo explains that InLoop uses technology to “deliver solutions to the education and healthcare industries that others have not been able to do”. In cutting through the bureaucracy and identifying a problem that needs to be genuinely solved, InLoop’s platforms achieve the vital objective of helping real people with real, everyday issues. For example, says Appoo, DECEMBER 2019
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INLOOP
“ With more focus on AI, machine learning, deep learning and natural language processing, more problems that were previously thought of as impossible can now be solved” 184
— Zubin Appoo CTO, InLoop
DECEMBER 2019
Flexischools works to address the fact that parents are busy, and thus do not always have the time to prepare nutritious lunches for their children or purchase bespoke school uniforms when required. “In this sense,” he adds, “it was really born out of making busy parents’ lives easier, and busy kids’ lives easier to manage.” Flexischools allows parents to store funds, order and purchase from a broad range of suppliers across each specific school campus, provisioning services such as school
CLICK TO WATCH : ‘LANTERNPAY FIXES THE PAIN IN TAC PAYMENTS’ 185 lunches, uniforms, events and ticketing,
and healthy eating content), and much
fundraising and stationery amongst
more. Using the trust already in the
other things. For the last decade, the
brand, Flexischools will be able to
platform has grown to support more
integrate these products and provide
than a million registered users across
parents with access to a much wider,
Australia and is now turning its atten-
and carefully chosen, selection of valu-
tion to enrolling a broader range of
able products and content relevant to
off-campus services to its base.
them via their existing accounts.
Currently in pilot, but rolling out from
With regards to LanternPay, Appoo
the beginning of 2020, Flexischools
explains that it is a solution built around
will allow parents to purchase part-
addressing problems around patients
nered maths and literacy products,
having easy access to the government
e-learning such as coding lessons,
healthcare funding that they are enti-
school holiday programmes, wellbeing
tled to. In Australia, many patients find
programmes (such as anti-bullying
it difficult to use their state-provided a si a .busi ne ssc h ief. com
Global Research Survey Results: Leveraging Digital Transformation to Enhance the Customer Experience A
s digital technologies dramatically reshape in industry after industry, most organizations are pursuing large-scale changes to capture the benefits of these trends or keep up with competitors. New Relic, in partnership with Vanson Bourne, led a survey of 750 global senior IT leaders at enterprises with 500 to 5,000 employees in the United Kingdom, Australia, France, Germany, and the United States. The study found that enterprises are making progress despite obstacles. IT leaders within these companies are finding that their digital transformations lead to significant challenges, such as increased pressure to prove the business value of said transformations. Interestingly, almost 50% of the global respondents admit that problems in their software are more likely to be discovered by their customers than by their own teams.
Drivers of digital transformation From banks to retailers, donut shops to automotive manufacturers, even traditional business-to-business industries such as suppliers of construction materials are transforming the buyer’s journey along a digital path. Our survey revealed that, overall, business leadership and the C-suite understand and support digital transformations (47%). Satisfaction levels are increasingly high, with 90.7% of respondents saying that the results of their transformations either met or exceeded their expectations. These findings are promising and show that executives are willing to embrace new technology; in fact, on the journey to digital transformation, more than half believe that artificial intelligence (AI) and machine learning (ML)
will make their roles easier. While the general sentiment on AI and ML is still up for debate across various industries, nearly 88% of our respondents agree that artificial intelligence and machine learning are essential to how they run their digital systems. Additionally, according to nearly 75% of the business leaders surveyed, migration to the public cloud is at the core of any digital transformation. Almost half of the respondents (46%) agree that cloud migration provides necessary benefits, but 54% believe that cloud computing does not offer the efficient resource usage it promises. So, many are harnessing the power of the cloud and AI to fuel digital transformations despite implementation obstacles, but they still recognize that those challenges must be addressed.
Ease the burden of digital transformation and customer experience Global organizations are indeed making significant digital leaps, but undertaking a full-scale digital transformation isn’t easy—especially for long-established companies not traditionally associated with software innovation. Our survey found that such organizations all face similar challenges.
Disjointed teams During transformation, not all parts of the organization move at the same speed. When teams and employees are stuck between using legacy systems and new technology, collective progress is held back and interoperability issues arise. Overall, 37% of global respondents identified disjointed teams as one of their top challenges.
A shortage of skilled employees According to 35% of respondents, one of the biggest challenges they face is finding the right employees with the right skills to drive their digital transformations. Additionally, if employees feel that a new technology makes their work harder, not easier, they resist its implementation. Training workers to understand how a new technology will ease their workload is of utmost importance for leaders who want to reduce the stress of their teams.
Restricted budgets 47% of technology leaders in our survey said their No. 1 obstacle is restricted IT budgets, followedby resistance to shut down or sideline legacy systems. More than a third report that they do not receive adequate support from non-tech leadership. Lead the next phase of digital transformation.
What business outcomes do we want to achieve for our customers? What skills do we need to keep up with a transformation, and with our competitors? While the challenges that attend a digital transformation vary, the survey indicates that teams who observe and act on insights from data collected throughout their systems will have a far better chance to truly scale and realize the benefits of modern technological advances. It’s inevitable that organizations need to adapt to changes in technology. But assessing why those changes are necessary, keeping the customer in mind, and preparing them selves for challenges along the way is the path to building the foundation they need for a successful digital transformation.
Learn more about the findings in the full press release: Global Survey Reveals Key Challenges and Technologies Expected to Drive the Next Phase of Digital Transformation.
INLOOP
“ We’re not trying to be a bank, or to simply solve banking-related problems, we’re working to eradicate real issues and challenges in education and health, the biggest social sectors in the world” 188
— Zubin Appoo CTO, InLoop
funding to pay for private services
“We’re not trying to be a bank, or to
such as physiotherapy, pharmacy or
simply solve banking-related problems,
psychiatry, due to existing payment
we’re working to eradicate real issues
systems that can often see funds
and challenges in education and health,
take several months to reach the ser-
the biggest social sectors in the world.”
vice provider. Through LanternPay,
Naturally, the nature of the issues
this process is streamlined. Service
that InLoop targets presents several
providers will receive the payment
challenges to the business. To be
within 24 hours, making them far
successful, Appoo maintains, a focus
more likely to accept the funding
on assembling the right team and
as a form of payment.
developing an appropriate manage-
“Our primary goal is to always help
ment strategy, whilst effectively
people manage their lives and deal
implementing the right technologies,
with real-world problems,” Appoo says.
are essential. To this end, he describes
DECEMBER 2019
E XE CU T I VE PRO FI LE
Zubin Appoo Zubin is Chief Technolog y Off ice at InLoop, where he has responsibilit y for delivering technical leadership across the Flexischools, LanternPay and Nuonic businesses. Zubin leads agile teams that are building innovative solutions to solve complex problems in the education and healthcare spaces. He prides himself on being ‘hands-on’ — and a leader by example, rather than a manager. he has over 20 years’ experience in the technology sector across a range of businesses — banking, supply chain and logistics, and now education and health. Whilst a technologist at heart, a key passion of his is also to build teams that love doing what they do. He does this by a constant focus on removing obstacles, focusing on their strengths and building an immense amount of trust between team members. Zubin is married to Rakhshandeh, has three kids — Zayden, Rylan and Aleera and lives in Sydney, Australia.
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INLOOP
2005
Year founded
HQ
Manly, Sydney Australia
110
190
Number of employees himself as a “hands-on CTO” and encourages close collaboration at all levels within his team. Hierarchies are less important than a good team structure, he believes, and an ethos of mutual respect, trust and leading by example are integral to his, and the company’s success. “The team at InLoop challenges ideas and brings personal experiences to the table – everyone is expected to bring ideas to the business, and those ideas are always listened to and explored,” he affirms. “Whatever the specific areas of focus, I always DECEMBER 2019
encourage our team members to think ‘what are the core problems we are trying to solve, and how can we solve them in the most streamlined, efficient, usable way?’.” Harnessing technologies and working with great tech partners has been an essential factor in growing InLoop’s innovative product portfolio. “Technology allows us to solve issues that people previously haven’t been able to solve or had taken a lot of time to solve, in a much more streamlined, efficient, accurate and high-quality way,” Appoo explains. “With a greater focus on AI, machine learning, deep learning and natural language processing, more problems that were previously thought of as impossible can now be solved.” InLoop uses several partners to achieve this goal, including cloudhosting by AWS to manage its servers. Using cloud-hosting negates the need for high-cost, high-maintenance physical servers and allows the team to put more time into the customer experience. The business is also heavily invested in Microsoft technologies. New Relic is a cloud monitoring and a si a .busi ne ssc h ief. com
191
INLOOP
analytics tool, which InLoop uses to monitor its systems and ensure that up-time is maintained, performance and order rates are high, and any anomalies are identified. An integral factor in delivering any InLoop service is cybersecurity. Both the health and education sectors are open to vulnerability and are dealing with vulnerable people, as Appoo explains: “There is an immense amount of focus on privacy regulation and ensuring data is not leaked, including 192
financial information.” In order to achieve that, InLoop partners with Braintree, a PayPal company, which focuses on providing secure
“ Whatever the specific areas of focus, I always encourage our team members to think ‘what are the core problems we are trying to solve, and how can we solve them in the most streamlined, efficient, usable way?’” — Zubin Appoo CTO, InLoop
DECEMBER 2019
payment solutions. For example, there is no need to store any credit card information, PayPal accounts, or other financial details within the Flexischools product, as this data is managed by the Braintree payment gateway. This is a seamless service, but ensures that financial information is entrusted with a third party whose expertise is in payment security. Other personal information stored by InLoop is kept secure in databases hosted inside
193
AWS, with strong security protocols
young division that, according to
and reviews undertaken by a dedicated
Appoo, will focus on gaining further
security team.
traction in the market and encourag-
Looking ahead, Appoo continues
ing greater participation from new
to focus on driving InLoop’s service
providers and schemes. In continuing
portfolio forwards. In modernising the
to use technology to deliver solu-
Flexischools programme, for exam-
tions that change lives for the better,
ple, the team is looking to deliver an
InLoop will remain at the forefront of
improved user experience and to be
the provision of innovative answers to
responsive to the growing market
real-world problems.
by rapidly introducing new features. In contrast, LanternPay a relatively a si a .busi ne ssc h ief. com
194
Digitally transforming the legal industry WRITTEN BY
GEORGIA WILSON PRODUCED BY
ANDREW STUBBINGS
DECEMBER 2019
195
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J O H N S O N W I N T E R & S L AT T E R Y
Ross Forgione, Chief Information Officer at JWS, discusses digital transformation within the legal industry
J
ohnson Winter and Slattery (JWS) is an independent national Australian law firm with over 60 partners based across five
offices in Australia. JWS advises major Australian and international corporations, investment funds and other clients on challenging transactions and disputes in Australia. “We create value through 196
legal and commercial analysis, pragmatism, the effective application of technology, project management and a collaborative work style,” says Ross Forgione, Chief Information Officer at JWS, who has over 30 years’ experience in information technology engineering. JWS’ vision is to be a leader in the legal industry, producing high-quality legal work for Australia and its sophisticated commercial clients. Since its founding in 1993, Forgione highlights that JWS’ systems have evolved organically with built up and built out layers. During his time at the firm, Forgione has worked to evolve and modernise the firm’s layered systems through iterative transformation over time, creating a strong foundation for its operations and producing a system that JWS can leverage and extract benefits from. DECEMBER 2019
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J O H N S O N W I N T E R & S L AT T E R Y
“ We create value through legal analysis, commercial analysis and pragmatism, the effective application of technology, project management and a collaborative work style� Ross Forgione Chief Information Officer, JWS
198
DECEMBER 2019
CLICK TO WATCH : ‘JOHNSON WINTER & SLATTERY CASE STUDY’ 199 Driving meaningful change is a
says Forgione. “We collect analytical
primary challenge for Forgione, who
information from the data we ingest,
highlights that JWS is continuously
generate or export to identify how our
looking at its internal processes to find
process are performing internally and
ways to deliver more value to its clients.
externally.” JWS has established key
Forgione also outlines that while JWS
partnerships with Microsoft, VMware
provides Australian legal advice, it has
and Pure Storage to further assist
clients, both domestic and foreign, that
unlocking the potential value we can
conduct business globally. Therefore,
derive from these data. “We have
part of Forgione’s job is to ensure any
worked very closely with VMware and
current or future technology imple-
Microsoft, maintaining a strong rela-
mented by the firm can support and
tionship with both organisations. Their
is compliant with international best
strategic paths help us understand
practice. “Our goal is to identify oppor-
what we need to be thinking about now
tunities to be as efficient as possible,”
for the future.” a si a .busi ne ssc h ief. com
J O H N S O N W I N T E R & S L AT T E R Y
200
Forgione has recently attended a
he says. “We are currently investigating
number of international legal technol-
how we can use AI and other machine
ogy conferences focused on driving
learning based software tools and
change that will improve the delivery
services to enhance the value of our
of services to clients and create a bet-
data and improve the ways in which we
ter working environment for the firm’s
service our clients.” Although Forgione
people. The conferences also gave
acknowledges that “AI will – for some
Forgione the opportunity to discuss
industries – make the world a better
common challenges, potential goals
place”, in terms of the legal industry, he
and opportunities with his peers in the
sees the application of AI broadening
industry, in particular involving artificial
over time with current applications lim-
intelligence (AI). “I don’t think I’ve been
ited to specific tasks. An area Forgione
to a conference in the last three years
has seen AI benefit the legal industry
where AI hasn’t dominated the agenda,”
is bulk contract review, removing
DECEMBER 2019
“ Our goal is to identify opportunities to be as efficient as possible” Ross Forgione Chief Information Officer, JWS
the need for lawyers to review large amounts of information. Other areas of innovative technology that Forgione and his team are looking into include leveraging Big Data. “We’ve got over 25 years of data, which we are now mining and analysing in our innovation incubator to develop useful insights to assist legal practitioners when making decisions,” he says. JWS is currently working with Pure Storage, building its data warehousing platform. “We hold large volumes of data at JWS, and if our platform is
E XE CU T I VE PRO FI LE
Ross Forgione Ross (MBA) is a seasoned professional with more than 30 years’ experience in the design, delivery and integration of IT services and major organisational change programmes. He has extensive senior management, services delivery, strategy & architecture/management, with subject matter expertise in information technologies, IT to business alignment, business process improvement, project management and transformational leadership. His skills have been developed through business and IT consultancy in manufacturing, professional services and broadcasting organisations, combined with active leadership roles held with Austereo and Johnson Winter & Slattery Lawyers.
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J O H N S O N W I N T E R & S L AT T E R Y
INNOVATE WITH THE MODERN DATA EXPERIENCE Pure Storages data solutions enable customers to maximize and deliver powerful data for competitive advantage through quickly adoptable, nextgeneration technologies including artificial intelligence and machine learning. At the top 1% of B2B companies, Pure's customers are the happiest in the world.
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203 not able to deliver the performance and reliability we need, it may take too long to receive actionable results, which isn’t practical for a commercial organisation.� Forgione, however, does explain that the implementation of technology needs to be carefully considered. Although there are significant benefits
1993
Year founded
HQ
Sydney New South Wales
of new technology, there are challenges to be mindful of too. “As a business you need to identify where the opportunities lie and assess them. If it makes commercial sense to proceed with a technology driven
200+
Number of employees
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J O H N S O N W I N T E R & S L AT T E R Y
204
“ A s a business you need to identify where the opportunities lie and assess them� Ross Forgione Chief Information Officer, JWS
DECEMBER 2019
initiative – then proceed,” he says. “But, if you can be effective without having to apply new technology, and you can accomplish a very quick resolution with existing technology or people that will stay in place and continue to serve its purpose, then take that route.” When implementing new technologies firms such as JWS need to consider the following areas: • Is the technology easily implemented and rolled out to the end users (be they lawyers or other employees in the organisation)? Are the costs associated with the new technology, including in relation to its purchase, the training required to use it and the costs of the inevitable disruption caused by most changes in workflow going to deliver an appropriate level of return once the technology is used in the business? • What impact, if any, might new technology have in relation to the security of our client’s information and the integrity of our systems? To the extent that new vulnerabilities might arise, what steps can we take to remedy or mitigate these risks? • Can the new technology be widely a si a .busi ne ssc h ief. com
205
J O H N S O N W I N T E R & S L AT T E R Y
“ We’ve got over 25 years of data, which we are now mining and utilising it in laboratories to further 206 remove bias and develop useful insights for legal practitioners to use when making decisions” Ross Forgione Chief Information Officer, JWS
used so that the new benefits can be enjoyed at scale? • What impact will the new technology have on the performance of our existing systems and infrastructure – is this manageable? When it comes to data protection and cybersecurity, JWS ensures it covers all its bases. The firm not only utilises encryption technology, penetration testing, response plans and real-time monitoring, but also conducts
DECEMBER 2019
207
specific security awareness education
passionate people, who experiment
programmes for its staff members,
both within its innovation incubator and
in addition to carrying out training
in the provision of services to the firm’s
courses and demonstrations.
clients, is what drives JWS’ ability to
Reflecting on the firm’s development,
stay ahead of fast evolving technology.
Forgione believes the firm’s biggest
JWS expects to be among the most
success has been how quickly JWS
innovative providers of legal services in
has been able to adapt and embrace
the Australian market for a good many
new technology in order to introduce
years to come.
innovations to best serve clients. Forgione believes that networking, attending conferences and the firm’s a si a .busi ne ssc h ief. com
208
Creating future-ready learners through an innovative digital transformation WRITTEN BY
RACHAEL DAVIS PRODUCED BY
STUART IRVING
DECEMBER 2019
209
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SWINBURNE UNIVERSIT Y OF TECHNOLOGY
Universities create and stimulate great minds to do incredible things. Swinburne University of Technology is harnessing this energy in its innovative digital transformation, CIO Sean Elwick tells us
T
oday’s students can forget the days of trawling through library book indexes for specific keywords and frantically
hand-writing notes in unengaging lecture halls. Technology is at the forefront of academia, from 210
the ways students consume information through e-learning portals and networks, to utilising virtual and augmented reality technologies as a part of everyday life. Sean Elwick, CIO at Swinburne University of Technology in Melbourne, Australia, tells us of the institution’s ongoing digital transformation. Swinburne is in the world’s top 400 universities, according to the 2019 QS and Times Higher Education university rankings, and “has an international reputation for quality research that connects science and technology with business and the community.” Innovation runs through every aspect of the university, and its progressive agenda with an emphasis on the importance of utilising technology sets Swinburne apart from other institutions. DECEMBER 2019
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SWINBURNE UNIVERSIT Y OF TECHNOLOGY
212
“ As an IT team, it is important that we have the basics right. Expectations are rising around how we take that next step” — Sean Elwick CIO, Swinburne University of Technology
DECEMBER 2019
Sean Elwick has only been CIO at Swinburne since September 2019, joining mid-way through a promising digital transformation backed by a progressive mindset with innovation at its core. The university’s 2025 strategy has three key pillars: innovative enterprise, future-ready learners, and research with impact, creating “confident and enterprising learners who create social impact”, with agile strategies at its core. User experience is at the forefront of the digital transformation led by
CLICK TO WATCH : ‘DATA FOR SOCIAL GOOD CLOUD INNOVATION CENTRE’ 213
Elwick. “In a B2C environment where
holds personalisation and individual-
your main audience is people who
ism at its centre. This includes the
are digitally native, you must be able
ever-changing way that students
to have that intuitive, sticky experi-
interact with learning tools.
ence,” he explains. “As an IT team, it is
Swinburne is beginning to harness
important that we get the basics right.
the potential of virtual reality (VR)
Expectations are rising around how
and augmented reality (AR) to take
we take that next step.”
the student experience to the next
Quality data management is an
level. In partnership with the Faculty
essential step in kickstarting that
of Health, Elwick’s team is piloting
great user experience. Ensuring they
an AR scheme with first-year health
are collecting the right data and using
students on anatomy programmes,
it in the right way is integral, particu-
where instead of having a physical
larly in a technological society which
cadaver to study, they can examine a si a .busi ne ssc h ief. com
SWINBURNE UNIVERSIT Y OF TECHNOLOGY
one virtually through AR and life-size
students will have access to Adobe
touchscreen displays. “There are
Creative Cloud – a collection of the
many implications of having a cadaver
world’s best applications and services
on site,” says Elwick. “We’re exploring
used for graphic design, video editing,
using augmented reality, so a body
web development and photography.
can be scanned and then students
As an Adobe Creative Campus,
can study it in the virtual world.” Swinburne has partnerships with
214
Swinburne is now more poised than ever to create future-ready learn-
leading tech companies, most notably
ers. “It’s not just about the academic
Adobe and Canvas. The university
qualifications, but about being able
is the first Adobe Creative Campus
to navigate today’s dynamic world
in Australia, and one of only 20
with digital literacy,” explains Elwick.
worldwide. This status means that,
“Students can experiment with differ-
from November 2019, all Swinburne
ent skills that are essential
DECEMBER 2019
for today’s work, and the work of
“ Students can experiment with different skills that are essential for today’s work, and the work of the future” — Sean Elwick CIO, Swinburne University of Technology
the future.” Additionally, by transitioning from Blackboard to Canvas as their learning management platform, students can access content across any connected device. Canvas supports group work and collaboration, and is “a very modern platform for us to go forward with,” believes Elwick. Swinburne also has its own Digital Transformation Centre, the first of its kind in Australia. In partnership with DXC Technology, the world’s
E XE CU T I VE PRO FI LE
Sean Elwick Sean is the Chief Information Officer at Swinburne University of Technology. He is a strategic, collaborative and resultsorientated business executive who has successfully orchestrated and delivered lasting change to Australian and international organisations. Sean has provided strategic and tactical solutions while operating as a global CIO since 2012, sits easily with leadership positions held within ‘Big 4’ consulting organisations and has a career that spans 20 years, including owning and running a consulting practice. He is passionate about #modernIT and the benefits that can be leveraged for an organisation, and is often called upon as a thought leader.
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SWINBURNE UNIVERSIT Y OF TECHNOLOGY
visit thinkfwd.com.au
Smarter performance drives ambition
“It’s not just about the academic qualifications, but about being able to navigate today’s dynamic world with digital literacy” — Sean Elwick CIO, Swinburne University of Technology
217 leading independent, end-to-end IT
Venture Cup, now in its 20th year. The
services company, the DXC Digital
prize is AU$20,000 in funding for the
Transformation Centre at Swinburne
most exciting startup that addresses
“allows for collaboration between
an unmet need for its target audi-
DXC, ourselves, the government and
ence. Along the way, entrants receive
industries,” affirms Elwick. It not only
bespoke coaching from successful
provides opportunities to students in
founders, including pitching work-
creating a talent pool prime for intern-
shops; 2019’s winning startup, Project
ships and jobs post-graduation, but
Milk, has developed a new breast
also to local businesses and startups
pump design that will improve mothers’
who are offered smart ways to get
experience of expressing breast milk.
competitive on a global scale. As part of its engagement with
Recognising that “innovation occurs when divergent concepts
startups and the future of innova-
come together to form a solu-
tive tech, Swinburne presents the
tion,” Swinburne has created the a si a .busi ne ssc h ief. com
SWINBURNE UNIVERSIT Y OF TECHNOLOGY
1908
Year established
19,000+ Number of undergraduates
3,000+ 218
Number of postgraduates
DECEMBER 2019
Innovation Precinct. The university utilises its strong industry ties, rigorous research capabilities and agile approach to change, and has produced “an innovation ecosystem that supports ideas both big and small”. The precinct’s three pillars of innovation are Design Factory Melbourne, Factory of the Future, and the Digital Innovation Lab – each contributing to a platform for research and experimentation which promotes software engineering competency, virtual reality learning, and “a hub for engaging manufacturing businesses, undergraduate and high school students, alumni and the wider community.” Swinburne has already achieved so much in its digital transformation. Using its expertise in industry 4.0 technology, social impact and design thinking, the university has created an inspiring, innovative environment for students, staff, alumni and the community to develop future-proof skills in technology. “Technology is in our DNA,” said Elwick. “Swinburne University of Technology wants to be known for its innovative tech, and for me that’s a si a .busi ne ssc h ief. com
219
SWINBURNE UNIVERSIT Y OF TECHNOLOGY
“ Celebrate your mistakes, as you learn as much from them as your successes” 220
— Sean Elwick CIO, Swinburne University of Technology
about setting the bar high and thinking ‘what can we achieve?’.” Curiosity is key to Elwick’s strategy. In encouraging a change of mindset among his peers and colleagues, guiding his team to “just imagine” the future of the IT culture at Swinburne University, he encourages them to open their minds to risk-taking in order to achieve the end goal of a transformed, uplifted IT culture in partnership with the university. While there are increasing demands and
DECEMBER 2019
increasing expectations from IT, Elwick maintains that it is important to “celebrate your mistakes, as you learn as much from them as your successes,” and to ‘Just Imagine’ what can be achieved through a transformed IT culture. During his tenure as CIO, Elwick wants to enable “an outstanding digital experience for our students and staff through our university strategy.” With his agile, thoughtful and curious approach, and a strong springboard created by his peers and predecessors, Swinburne University is primed to create future-ready learners, inspire innovative ideas, and ultimately deliver a “digital ‘wow’ experience.”
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222
Supplier satisfaction through digital disruption WRITTEN BY
MATT HIGH PRODUCED BY
ANDREW STUBBINGS
DECEMBER 2019
223
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C2FO
C2FO is using digitally disruptive technology to achieve supplier satisfaction, as Iain Rolfe, Managing Director Australia, and New Zealand, explains
W
ith any true disruption, the most impactful are those that are the simplest,” says Iain Rolfe, Managing Director, Australia,
and New Zealand at C2FO. Rolfe is referencing the considerable success of C2FO, an innovative business that turns receivables into cash flow through an 224
online platform that offers customers the opportunity to take total control of their capital, improve cash flow on demand and earn no-risk returns. “In the most basic terms, we match accounts receivable to accounts payable, presenting to market a win-win proposition for businesses that have money owed to them, and those who invest in their supply chain,” says Rolfe. To facilitate this, C2FO operates a cloud-based marketplace where suppliers can name a discount rate on selected invoices in exchange for their early payment. As with many businesses, C2FO was born out of necessity by founder and present-day CEO Sandy Kemper nearly 10 years ago in response to a financial system he viewed as broken. The issue encountered by Kemper was that “intermediaries such as banks had, over time, assumed a position DECEMBER 2019
225
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C2FO
between a buyer and supplier, which had slowed down the entire process. That’s really the reason that what we offer is considered disruptive. It shouldn’t be, but we’re working in a financial system that is fundamentally broken. We’ve fixed that problem and changed the way the system works. It should never be hard for a supplier to be paid early if needed– if we started again with no system, there’s no way we would design a similar one.” Under Kemper, C2FO has expe226
rienced considerable success. According to Rolfe, the business is now in “a phase of very rapid and significant international growth”, including in Australia. Expansion into Australia began in the summer of 2018, when C2FO began building a physical presence in a market where it already served several large corporates. Rolfe is currently focused on accelerating this growth and “doubling down on the market”. This is being aided by AU$200mn funding from Japanese conglomerate SoftBank, announced in August this year. The investment was primarily designed to accelerate the DECEMBER 2019
“ The simple fact that 92% of those that engage with our platform are getting less than their next best alternative is phenomenal” — Iain Rolfe Managing Director Australia & New Zealand, C2FO
CLICK TO WATCH : ‘C2FO ON THEIR AUSTRALIAN VENTURE’ 227 development of new markets for C2FO so that it could better provide small and medium enterprises, as well as multinational corporations, with access to working capital. It also saw Nahoko Hoshino of SoftBank Investment Advisers join C2FO’s board of directors. “SoftBank only invests in organisations that have good or unique prospects,” elaborates Rolfe. “The investment has given us the ability to do new things with the extra resources required to grow. For me, that means continued international expansion, bringing the model to new a si a .busi ne ssc h ief. com
C2FO
“ There’s no downside to what we do – no one loses” — Iain Rolfe Managing Director Australia & New Zealand, C2FO 228
markets—particularly focusing on Asia,
C2FO generates income through
where I am based—and investing for
invoice discounts provided by suppliers.
the long-term.”
Viewed on financial terms returns are
A mark of this focus on expansion
significantly greater than other invest-
is the company’s recent acquisition of
ment alternatives, particularly in the
Priority Vendor, its largest competitor in
current low interest rate environment.
India, which Rolfe says positions C2FO
However, the most impactful return is
as the largest platform in that market.
the ability to help suppliers with their
C2FO’s platform enables compa-
working capital needs. Ultimately this
nies—vendors and enterprises—to take
leads to closer and more collaborative
greater control of their money. For the
relationships over a longer timeframe.
former, it provides improved cash flow
“One real issue we look to contend
on-demand provided directly from their
with is that suppliers often don’t feel
own customers. For the latter, engaging
they can open conversations about
DECEMBER 2019
CLICK TO WATCH : ‘HOW DID ALBERTSONS COMPANIES ACHIEVE ROI 3 MONTHS?’ 229
E XE CU T I VE PRO FI LE
Iain Rolfe Iain is Country Managing Director, Australia, and New Zealand at C2FO. He has a 20-year proven track record of achieving aggressive sales targets, improving organisational performance, and reaching business goals, as well as deep expertise with the strategic impact of technology disruption, the sales process, incubating new organisational functions, constructing complex customer deals, and managing strategic change. At C2FO, he is tasked with leading the expansion of the business into Australia, New Zealand and ASEAN.
a si a .busi ne ssc h ief. com
receiving early payment—they are concerned as to how their customers would view such a request,” says Rolfe. “But they do it because they need that money. Without our model the only real options that exist, particularly for smaller vendors, are in the form of loans from a bank, credit cards, or borrowing from friends or family. In contrast, when they engage with us, they can organise the payment in an ‘arms-length’ way and at a price that works for them.” At the other end of the supply chain, 230
C2FO helps large enterprises achieve the best available return on their cash in a completely risk-free manner: once a supplier has been paid, that liability has been extinguished. “When you add these two factors together, it’s easy to understand why we’ve had approximately AU$250bn of early payment requests in the time we’ve existed, with nearly AU$20bn of total invoices approved,” comments Rolfe. “The scale and demand are high, but it works. It’s a win-win for all those involved.” Indeed, such is the success of C2FO’s platform to date that Rolfe admits to finding the results—including DECEMBER 2019
2009
Year founded
HQ
Kansas City United States
300+ Number of employees
matching close to 92% of all requests for early payments—hard to believe. “It’s amazing,” he states. “Forget the technology involved, or the algorithms we use, the simple fact that 92% of those suppliers that engage with our platform access capital at a cost that is less than their next best alternative is phenomenal. It means we are providing truly great value to nearly all of the participants in our market.” Understandably, to offer such a service to users requires a complex and innovative technology platform capable a si a .busi ne ssc h ief. com
231
C2FO
of managing vast amounts of data. C2FO runs its platform using all of the world’s major cloud services, and utilises several proprietary algorithms that operate to match offers to acceptances, all of which have been refined during the last 10 years of operation. “You can’t operate what we do without those algorithms being at such a maturity—it brings capability that really is at the next level of sophistication,” states Rolfe. He also points to a focus on ensur232
ing the highest levels of customer
Guests and partners joined C2FO for a ceremony to formally announce the investment from Softbank. Funds from this round will be used across the globe to drive organic growth
experience, describing the model and user-interface as “careful, elegant and simple”. Delivering such a seamless solution is the result of high volumes of A/B testing, rigorous auditing and reporting, and dedication to the most stringent information protection. The latter, in particular, allows the business to be trusted by the world’s largest organisations, including 75 of the Fortune 500 and 11 of the Fortune 60 companies. “One of our most important metrics is supplier satisfaction,” he explains. “We measure it every day, as we have to be at the top of the tree. We actively DECEMBER 2019
“ There’s an inherently strong culture in providing a service which is valuable across the working capital chain” — Iain Rolfe Managing Director Australia & New Zealand, C2FO
CLICK TO WATCH : ‘BUSINESSES AROUND THE WORLD LOVE C2FO’ 233 prioritise the supplier and buyer expe-
by an ethical standpoint of supplier
rience, with our philosophy being that
satisfaction.
we want to be a good corporate citizen.
“It is quite astounding to be a part
The ability to do the right thing and to
of that,” affirms Rolfe. “In Australia we
really help is one of the key factors that
intend to scale in a way that offers a
drew me to C2FO initially— there’s an
win-win for buyers and suppliers. I can’t
inherently strong culture in providing
see a scenario where we’re not suc-
a service which is valuable across the
cessful—there’s no downside to what
working capital chain.”
we do—no one loses.”
At any one time, the volume of payments that are due globally is upwards of the $42trn mark. C2FO has taken a sizeable step towards not only reducing that figure, but doing it in a manner that is driven a si a .busi ne ssc h ief. com
234
Driving the energy transition through innovation and community engagement WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
RYAN HALL
DECEMBER 2019
235
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S O L I S R E N E W A B L E E N E R G Y P T Y LT D
King Arthur, Executive Director at Solis RE, discusses how the renewable energy consultancy and project management firm drives powerful community-led projects in an evolving energy landscape
A
ustralia is in an interesting position when it comes to the energy transition. While the country, famed for its idyllic beaches
and unforgiving desert, is no stranger to sunlight, its 236
sheer size and lack of extensive transmission infrastructure are considerable limiters to the uptake of renewable energy systems. King Arthur, Executive Director at Solis RE, believes technological advances, alongside major shifts in international attitudes and local legislation regarding sustainability and renewable energy, mean that surmounting the challenge is increasingly possible. “Everyone is understanding of the fact that we can’t keep using fossil fuels. The Australian Government has adopted that to some extent, and the Victorian Government has embraced it,” he says. “The latter has legislated a target of 50% renewables usage in Victoria by 2030, which has given people confidence in the long-term focus.” Naturally, as with their contemporaries around the world, Victoria’s coal-fired plants DECEMBER 2019
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S O L I S R E N E W A B L E E N E R G Y P T Y LT D
“You can’t keep putting solar into the system as it’s produced because you end up with a massive peak in the middle of the day when the sun’s shining, and obviously you don’t have any power at night” — King Arthur, Executive Director, Solis RE
238
DECEMBER 2019
CLICK TO WATCH : ‘CNBC – THE RISE OF SOLAR POWER’ 239
have found their days to be numbered.
of people have built big solar farms
While this shift towards renewable
in the sunniest parts of Victoria, the
energy facilities is a boon for the envi-
sunniest parts of Australia up in
ronment, the resultant job losses and
Queensland, but they don’t have the
need for reskilling workforces must
infrastructure to support it and they
be addressed with the same potency
don’t have the energy demand close
as the aforementioned infrastructural
to where they’re based. Therefore, you
challenges. Enter: Solis RE.
have to transmit the power over hun-
Co-founded by Arthur and long-time
dreds, if not thousands, of kilometres,
business colleague Michael Bugelly,
and you lose energy all the way along
also an Executive Director at the firm,
that transmission line,” Arthur explains.
Solis RE is shaking up the established
With this awareness at the top of the
methods by which Australian renew-
company, Solis RE focuses on areas
able energy projects take shape. “A lot
where there is tangible need and a si a .busi ne ssc h ief. com
S O L I S R E N E W A B L E E N E R G Y P T Y LT D
“ The number of jobs that will be created as a result of developing the Gippsland Renewable Energy Park will be between 1,200 and 1,500 during the construction phase, with many hundreds of ongoing jobs over the next 10 to 15 years” — King Arthur, Executive Director, Solis RE
relatively easy access to the grid, and maximises the opportunity by bringing local communities on board. The company recently signed an agreement to develop the Gippsland Renewable Energy Park – a huge undertaking worth an estimated AU$2bn that also serves as the perfect example of its offering’s forward-thinking, community-driven and holistic nature. The project is a huge undertaking that will require a significant amount of land. “It’s about 23km2 in terms of
240 E X ECU T I VE P RO FI LE
King Arthur King Arthur has significant experience in retailing and manufacturing and expertise in corporate strategy, business transformation, procurement and contract negotiations. He has 15 years’ experience in the retail industry, including as General Manager Supply Chain of Myer. Arthur has run his own management consulting business since 2002, working in Asia, Europe, the US and Australia. Over the past 35 years, he has developed Strategic Supply Chain and Procurement teams for Myer, RACV, IAG, AAMI, Mitre 10 and Australian Paper. He has brought his procurement and project management skills to the solar industry, where he has developed commercial relationships with major solar manufacturing companies and specialist EPC groups.
DECEMBER 2019
space, and for something like that to
purchasing. Along with these arrange-
get dropped into a community you
ments, the company has committed
obviously need to have a lot of commu-
to a community benefit programme
nity support and benefit,” says Arthur.
funded by the park, and the allocation
“We went out to all of the large business
of those funds will be decided by the
and community groups before we even
community. The factor that brought
considered what was going to be in
local government support on board,
the park to hear about their issues and
however, was the promise of an injec-
discuss how we could address them.”
tion of jobs for the local economy. “The
Those issues, he elaborates, include
number of jobs that will be created as
the cost of power and the potential for
a result of developing the Gippsland
jobs. Solis RE is thus arranging special
Renewable Energy Park will be
deals with local businesses for power
between 1,200 and 1,500 during the 241
E XE CU T I VE PRO FI LE
Michael Bugelly Michael Bugelly is a Chartered Accountant who began his career with KPMG. He has experience providing advice on all stages of a business life cycle, business growth strategies, valuations, assisting with the purchase and sale of businesses and corporate restructuring. Bugelly is an Executive Director of The Rufus Partnership Pty Ltd, a corporate advisory firm with extensive experience advising on agribusiness and renewable energy projects. He has also been involved in the not-for-profit sector, providing professional services including corporate governance and investment guidelines and was a director of Oz Child for 13 years. He has a Bachelor of Commerce (University of Melbourne) and is a Fellow of the Chartered Accountants Australia and New Zealand.
a si a .busi ne ssc h ief. com
S O L I S R E N E W A B L E E N E R G Y P T Y LT D
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“ The Victorian government has set a target of 50% renewables usage in Victoria by 2030, and that’s given people confidence in the long-term focus” — King Arthur, Executive Director, Solis RE
243 construction phase, with many hun-
because you end up with a massive
dreds of ongoing jobs over the next
peak in the middle of the day when the
10 to 15 years,” says Arthur.
sun’s shining, and obviously you don’t
With the weight of local businesses
have any power at night.” Batteries
and Federal and State government
can moderate the flow of electricity to
members behind it, there is plenty
the grid, minimising the impact of mid-
of excitement in the potential for the
day peaks and night-time troughs. For
completed Gippsland project. The
the wider project, Arthur asserts that
first phase of the project, itself worth
artificial intelligence (AI) will be applied
approximately $125mn, is a 44MW
to the management of energy flow
solar farm complete with battery stor-
rates, particularly as more than solar is
age amounting to 50MWh. “That’s
planned for Gippsland. “With the larger
essential,” Arthur says of the battery
site, the Gippsland Renewable Energy
capacity. “You can’t keep putting
Park, we’re not just doing solar plus
solar into the system as it’s produced
batteries. That’s stage one, 500MW a si a .busi ne ssc h ief. com
S O L I S R E N E W A B L E E N E R G Y P T Y LT D
244
DECEMBER 2019
PA RT N E R S
The collaboration-focused Solis RE has a number of key partners that are driving the success of its projects, including Middletons Engineering, AusNet, the Australian Energy Market Operator (AEMO), the Latrobe Valley Authority, and Federation University Australia. 245 of solar and 500MWh of battery, but we’re also integrating a number of other renewable energy sources on that same site,” enthuses Arthur. Along with plans to install a gas peaker station to provide baseload energy when necessary, Solis RE is also examining the viability of biomass. “There’s a huge issue with municipal councils being able to environmentally dispose of waste – they don’t want to send it all to landfill, so we’re looking at how we can convert it into energy instead.” The innovative design of the park does not end there, with plans to a si a .busi ne ssc h ief. com
S O L I S R E N E W A B L E E N E R G Y P T Y LT D
“ We went out to all of the large business and community groups before we even considered what was going to be in the park to hear about their issues and discuss how we could address them”
246
— King Arthur, Executive Director, Solis RE
leverage the site’s enormous energy
noting that, until recently, hydrogen’s
generation potential to power a hydro-
viability had been deeply limited by
gen production plant. Onshore and
issues around production and storage.
offshore wind facilities are also being
The scope of Solis RE’s capabili-
fielded as potential sources for the
ties and capacity for bold innovations
Gippsland project. The sum is a renew-
belie the recency of its founding,
able energy facility that produces
and Arthur is enthusiastic about its
power at all times of day, feeding the
enduring prospects. He affirms that
grid reliably and sustainably. Solis RE
its community engagement-focused
is also keen to continue project devel-
foundations will remain essential to its
opment as more solutions become
strategy going forward. “As a project
commercially viable, with Arthur
developer, we want to ensure that we
DECEMBER 2019
2016
Year founded
$10mn
Revenue in Australian dollars
247
continue to have large local content.
get what they need as the market
When we lease land, the land owners
moves in the future.� In an age where
take equity in the project, and we also
the challenges of the energy transition
find key community liaisons to fill skills
are being answered in earnest, a lot can
gaps and make sure that they come
be learned from Solis RE’s model of
in as equity partners as well.� It is of
collaboration, community engagement,
paramount importance, Arthur says, to
and technological flexibility.
ensure communities reap the benefits of the projects. All these projects are 20 to 30-year projects, so you really do need that local attention, care and ownership to ensure those projects a si a .busi ne ssc h ief. com
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