BC Asia magazine – January 2018

January 2018

ASIA EDITION

EXCLUSIVE

HOW RESILIENCE AND INNOVATION SIT AT THE HEART OF JOTUN PAINT GROUP’S GROWTH

HONG KONG

CITY FOCUS TOP 10

FASTEST GROWING TECH COMPANIES IN ASIA

Leading the industry with customer care Joel Edgerton explains how BNP Paribas Cardif has struck the balance between technology and customer experience to dominate the insurance market in Japan

Join Claims & Underwriting Experts Across World’s Top Insurance Companies at this Must-Attend Summit!

A Solution-Focused & Case Study-Driven Insurance Claims & Underwriting Management Summit!

5th Insurance Claims & Underwriting Management Asia Summit 2018

■

Main Summit: 7 & 8 February 2018

■

Workshops: 6 & 9 February 2018

■

Venue: Rendezvous Hotel Singapore

FROM TECHNOLOGY TO IMPROVED CLAIMS & UNDERWRITING PROCESSES CUSTOMER SERVICE TO FRAUD AND LITIGATION, WE GOT YOU COVERED!

6 Expert-Led Pre & Post Summit Workshops: Attend the 6 Expert-Led Pre & Post Summit Workshops to grasp the nuts and bolts in optimizing your claims & underwriting management strategy. The sessions are delivered from the nation’s top experts and leaders, delivering content that you need and could not gain elsewhere: TUESDAY, 6 FEBRUARY 2018:

A

The Future of Insurance Claim by Tokio Marine Japan: How to Leverage Artificial Intelligence (AI), Robotics & IOT to Revolutionize Claims Handling Process

B

Leveraging Data Analytics Technology & Skills to Support More Dynamic Claims Investigation & Underwriting Decisions

C

Reviewing Your Claims Process to Establish Fast Settlement Plans, Prevent Huge Claim Amounts & Business Interruption Loss

FRIDAY, 9 FEBRUARY 2018:

D

Learning Step-by-Step Guide to Creating Practical Underwriting Maturity Model to Enhance Your Underwriting Workflow

E

Developing Strategic Underwriting Pricing Mechanism to Overcome Premium Reduction Issues and Stay Competitive

F

Understanding Best Practices on Risk Assessment, Administration Costs and Solution Development for Claims & Underwriting Functions

REGISTER NOW! PHONE 65 6376.0908 EMAIL enquiry@equip-global.com

Researched & Developed by:

FOREWORD WELCOME TO JANUARY’S Asia edition of Business Chief.

We are very excited to share our new magazine with you and hope you enjoy our expanded range of content, including our leadership showcase interview with Eric Mallace, Managing Director (Malaysia and Singapore) at Jotun Paints, who explains the company’s expansion across the globe and particularly across Southeast Asia.

We also have features on IoT, Indeed’s recent report on offering employees unlimited leave, and the UN and World Bank’s sustainability roadmap.

Hong Kong is the destination for our January City Focus, which examines the city-state’s recent fintech initiatives. For this month’s top 10 list, we’re looking at Asia’s fastest-growing tech companies.

Don’t miss our exclusive insights on Coty, Valmet, Sarawak Energy and BNP Paribas Cardif.

Wishing you the very best beginning to 2018, and as always we welcome your comments on Twitter. @Business_Chief

Enjoy the issue!

http://asia.businesschief.com www.bizclikmedia.com

3

08

F E AT U R E S

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

HOW RESILIENCE AND INNOVATION SIT AT THE HEART OF JOTUN PAINT GROUP’S GROWTH PEOPLE

THE BREAKTHROUGH YEAR FOR IOT? TECHNOLOGY

18 28 Indeed shows how to make an ‘unlimited leave’ policy work

4

January 2018

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

Can the UN and World Bank’s ‘Roadmap for a Sustainable Financial System’ lead to a brighter tomorrow?

CITY FOCUS

HONG KONG’S NEW FINTECH INITIATIVES TO RETAIN FINANCIAL HUB STATUS

46

TOP 10

54 FASTEST-GROWING TECH COMPANIES

IN ASIA

5

F E AT U R E S

62

BNP Paribas Cardif ENERGY

Coty

SUPPLY CHAIN

74 6

January 2018

86 Valmet

SUPPLY CHAIN

Sarawak Energy ENERGY

96

7

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

HOW RESILIENCE AND INNOVATION SIT AT THE HEART OF JOTUN PAINT GROUP’S GROWTH Business Chief speaks to Eric Mallace, Managing Director at Jotun Malaysia and Singapore, to find out how the business has grown from its origins in Norway into a global paint company Writ ten by STUART HODGE

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

JOTUN PAINT GROUP is now very much a worldwide enterprise, but the business has come a long way in 91 years.

It started back in 1926 when founder Odd Gleditsch returned from a whale hunting trip at the age of 15, when he had learnt first-hand the importance of paint in protecting ships. As a result, a new industrial adventure was born.

Nowadays the company has more than 40 manufacturing facilities across 10

January 2018

the world and distributes its products across more than 100 countries.

At the end of last year, Jotun launched new factories in the Philippines, Myanmar and Malaysia to add to its existing facilities in Malaysia, as well as Thailand, Vietnam, Indonesia, China and Korea.

Malaysia is also the regional hub for Jotun South-East Asia’s operations and R&D Centre for the development of new products for Southeast Asia.

“ With our regional R&D lab, we continue to develop new products that are tailored to suit the needs of the local market” – Eric Mallace, Managing Director of Jotun Malaysia & Singapore

According to Eric Mallace, Managing Director of Jotun Malaysia & Singapore, it’s an exciting time for Jotun Paint Group as it looks to capitalise on the opportunity presented by the Asian market and expand the company’s regional market share, all the while continuing to innovate.

“Asia is an important and fastgrowing region for Jotun,” says Mallace. “The GDP and population are

generally high, which is a key driver for success.

“In recent years, we have been growing aggressively in all of our four main strategic segments – Marine Coating, Protective Coating, Decorative and Powder Coating – especially in Asia, and we will continue to invest in this region.

“With our regional R&D lab, we continue to develop new products that are tailored to suit the needs of the 11

local market. We will also strive to enter more new markets and pioneer in innovating new solutions, formulated with environmentally friendly products.”

Making paint products safer has very much been a focus of the market in recent years and Jotun Paint Group is no different: “Right now, Jotun’s research and development conforms to the group policy on launching new hi-tech products which offer greater performance whilst remaining ecofriendly,” Mallace explains. “It is part of our commitment to protecting the environment. A good example of this is that Jotun has stopped using raw materials containing harmful chemicals.”

That’s just the latest in a list of successful company innovations.

Jotun has pioneered the Multicolor Tinting System since 1976, a state-ofthe-art system which puts over 10,000 colour creations of almost any hue at your fingertips and dispenses the chosen paint colour in less than three minutes.

Mallace describes it as “one of the best tinting systems globally”, but a lot of Jotun’s early success was mainly founded on providing marine coatings, 12

January 2018

Application of time saving, mesh-free Jotachar

an area where it has always been ahead of the market.

The company’s success in continuing to innovate to stay competitive in the market has to be lauded, as does the company’s brave and aggressive expansion across the globe.

It has certainly been an impressive journey for Jotun from its beginnings

L E A D E R S H I P & S T R AT E G Y The Jotun story began in Norway in 1926

“ We need to have the right mind-set, we need to find the right people and provide the right quality of products” – Eric Mallace, Managing Director of Jotun Malaysia & Singapore

as a local paint factory.

Gleditsch’s original vision saw Jotun growing into a worldwide company and, with the groundbreaking nature of some of the products, the company created industrial history along the way.

The charismatic Norwegian’s entrepreneurial character embedded itself into the foundations Jotun has

built itself on.

When Gleditsch’s son, Odd Gleditsch Jr., started working for the company in 1953, the economic growth in the Middle East attracted his attention, and so in 1962 Jotun opened its first factory abroad, in Libya.

This proved to be the beginning of a whole new adventure for the company 13

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

“ We are proud to say that we have achieved growth organically instead of through acquisitions and, in recent years, we have been aggressive in expanding our business in many countries, allowing Jotun to grow even further” – E ric Mallace, Managing Director of Jotun Malaysia & Singapore

14

January 2018

as Jotun’s global expansion continued, and in 1968 the firm opened its first factory in Thailand, thus establishing the company in Asia.

Jotun is still looking to grow its reach to this very day, but even with all of the strong experience the company can rely on and Jotun’s previous successes, Mallace is still adamant it’s not an easy thing to do.

“One of the main challenges we’ve faced when moving into a new market is the strong local players that are already established and that’s no different now,” says Mallace.

“To overcome it, we need to have the right mind-set, we need to find the right people and provide the right quality of products. And of course, we can’t deny that retaining the right people is the key to success to any new market.”

Mallace, who’s been with the company since 1991, feels that the aggressive global expansion seen in recent years is thanks to the company’s strong corporate culture, as well as the efficacy and quality of Jotun’s products.

“The Jotun footprint has been achieved on many levels, such as in the numerous world-class projects it

has taken on,” he says.

“The durability and beauty of Jotun’s paint and coatings can be seen on some of the world’s most impressive buildings set in highly challenging external conditions, such as the exclusive Burj Khalifa and the Burj-Al Arab Hotel in Dubai, and the KLCC, Marina Sand Bay. “We are proud to say that we have achieved growth organically instead of through acquisitions and, in recent years, we have been aggressive in expanding our business in many countries, allowing Jotun to grow even further.

“The corporate culture and strength is symbolised by the penguin, which can survive blizzards at minus 30°C and showcases our resilience as a company.

“The Jotun Penguin takes this resilience into the tropics as well, where it has performed so well as it can even withstand any extremes of heat! This symbolism stands behind all Jotun products, supported by Jotun’s unique product quality renowned for its durable protection against corrosive and harsh conditions anywhere in the world.”

ABOUT ERIC MALLACE Eric Mallace describes himself as “a veteran of working overseas”, having developed skills in Western Europe, Central Europe, the Middle East and South-East Asia over the past 40 years. He spent his formative years in the telecommunications industry before moving to US-based mining company, 3M, in a commercial role.

Mallace joined Jotun in 1991 and has held several senior positions at the company across Europe and Southeast Asia, including both regional and country-specific roles, before recently moving to his current base in Kuala Lumpur as the Managing Director of Malaysia and Singapore.

About the new role, he says: “I bring extensive leadership and management experience and have been successful in raising the bar in several countries in both sales and operational efficiency. Prior to joining Jotun Malaysia and Singapore, I was elected as President Director in Jotun Indonesia where I developed the company to one of the key reference sites for Jotun Globally.”

15

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

16

January 2018

CAN PAINT DISRUPT? STAYING FRESH IN ASIA… Southeast Asia is an enormous market, and paint is hardly a new innovation. So how does a 91-year-old company like Jotun manage to stay fresh and disrupt the exiting markets to come out as a top global player? A commitment as a company to research and development is key here. Jotun’s main R&D centre in Norway has over 200 staff, but it also has regional labs across the world. With values of loyalty, care, respect and boldness, the company’s strategy centres around a global view with regional and local focus, as well as the organic growth to develop the new and existing markets Mallace has emphasised. Aside from its main R&D centre, the company boasts two laboratories in Southeast Asia: Malaysia: This centre was established in 1994 and is located at Jotun’s Shah Alam factory. It has a total of 17 people working in R&D covering decorative and

protective coating development work as well as supporting companies in the SEAP region. They help to develop new products, improve existing ones, test alternative raw materials, provide tech support for local production, and offer training on products knowledge.

Thailand: This centre was established in 1999 and is responsible for Powder Coating.

It performs product development, evaluates suitable raw materials and implements global products launches in the region.

Jotun states that as a company it is “continuously working to improve existing technology, explore new technology and move towards a more green future”. Its key areas include green innovation, operational efficiency and improving its product portfolio. It is constantly carrying out research into chemical safety as well as corrosion tests and mechanical tests.

17

T E C H N O L O G Y T R A N S F O R M AT I O N

THE BREAKTHROUGH YEAR FOR IOT? STUART HODGE LOOKS AT WHAT 2018 HOLDS FOR THE INTERNET OF THINGS, HOW IT’S SET TO GROW AND WHAT THE REMAINING CHALLENGES ARE Writ ten by STUART HODGE

T E C H N O L O G Y T R A N S F O R M AT I O N THE INTERNET OF Things is ready to take its rightful place at the forefront of business in 2018.

Or so it would seem: a recent report from Navigant Research claims that combined cumulative global revenue for Industrial IoT (IIoT) devices, software, and services is expected to total more than $1trn between 2017 and 2027.

IoT is essentially the glue which binds people, machines and data – so it’s no surprise to see it becoming a major point of focus for businesses around the globe.

The Navigant report also states that revenue from annual global shipments of IIoT devices is expected to grow from $47.9bn in 2017 to $129.3bn in 2027.

Ralf Gladis, CEO at global payment solutions provider Computop, can see the change happening.

“The Internet of Things is fast becoming a reality around the world,” he says. “Both small and large devices will process payments for us. Our cars will automatically pay for fuel and parking fees, our smartwatches will pay for taxis and our smartphones will prove to be a universal tool to buy and pay everywhere.

20

January 2018

“With that scenario in mind, payment will become a silent, smooth and automatic process.

Only payment methods that support this will have a future.”

But for the technology to become a truly global phenomenon, Gladis believes ensuring consumer trust is key.

“How do you want your car to pay for fuel? Credit card, PayPal or your company’s fleet card? Handing that process over to our devices will be a big change in consumer behaviour.

“New payment brands with no history or trust would keep consumers from embracing new technology and would slow the process down.

Established brands will probably make the decision easier.”

Gladis is speaking in terms of the end user, and IoT disrupting numerous industries: especially manufacturing, energy, agriculture, healthcare, and automobiles.

As a result, more and more organisations who are embracing IIoT are beginning to recognise the potential of leveraging the technology.

“We are starting to see more and more companies across the spectrum adopt IIoT strategies,” says Neil

How the Internet of Things Will Change the World

“How do you want your car to pay for fuel? Credit card, PayPal or your company’s fleet card?

Handing that process over to our devices will be a big change in consumer behaviour” RALF GLADIS CEO of Computop

Strother, principal research analyst with Navigant Research. “They are deploying hardware and software platforms to help lower operational spend and to serve as a competitive differentiator that can help them sell products and services at lower costs.

“IIoT technologies also support a broad digital transformation initiative within a business, enabling it to offer customers enhanced services and improved experiences.”

21

T E C H N O L O G Y T R A N S F O R M AT I O N

22

January 2018

At this moment, there is an argument that IIoT solutions appear somewhat overwhelming to deploy for managers unsure how to harness the array of technology choices.

Industrial managers face additional costs, complex technologies, big data, and uncertain outcomes with the result being a confused potential customer base and a market which has both the desire and potential to grow more quickly.

Further research, from $7.4bn turnover IT services company HCL Technologies, drilled a little more deeply into these struggles. Their work, based on a Vanson Bourne survey of 263 organisations across Europe and the United States, found that as many as 49% of organisations surveyed are struggling to get off the ground with IoT, due to an uncoordinated and siloed approach, with 43% saying their customers will suffer as a result.

The findings of this report indicate that despite widespread acknowledgement of the potential benefits of IoT, many organisations are limiting its use to just one process or function, as opposed to a businesswide approach. According to HCL, 23

T E C H N O L O G Y T R A N S F O R M AT I O N this represents a major threat which could derail IoT projects by postponing the time-to-value, and thereby reducing the competitive advantage that businesses stand to gain.

Matthew Dunkley, a Director for IoT at Flexera who works with businesses to monetize their IoT investments, recently penned some notes around best practice for intelligent device manufacturers.

“The Internet of Things is transforming today’s landscape – promising higher margins, new revenue streams and steep profits.

Manufacturers used to be able to deliver updates yearly, which seems almost inconceivable today,” he says.

“Constant updates are now the

“The Internet of Things is transforming today’s landscape – promising higher margins, new revenue streams and steep profits” MATTHEW DUNKLEY Director for IoT, Flex

24

January 2018

norm – be it weekly, daily or even hourly. Producers must absolutely do that to keep their software safe and secure and mitigate vulnerability risk.

“Companies making this transition are already reaping the rewards and commanding premiums. Why? Because they understand the power of their device is in the software, which includes all of the features buyers desire. And managing the software in devices requires a different way of looking at their entire business model.”

He expands: “Take software upgrade management, for example – the process of making sure customers have the latest and greatest technology powering their devices. IoT companies that think like software companies know they must manage the core processes (renewals, delivery of software and updates, maintenance and services).

If they do not do this right, they will suffer from low renewal rates.

“For instance, IoT companies often do not have processes in place to manage the software lifecycle over time and drive renewals – meaning that end users are often unaware of available upgrades, or have trouble finding them. When

Lenovo Tech World - Internet Of Things

that occurs, satisfaction falls.�

Customer satisfaction will be the key to making the technology more widely popular, particularly with end users.

The HCL report also pinpointed security concerns as being the principal reason as to why the technology has not been taken up more widely to this point. Indeed, 38% of respondents cited this as the primary barrier.

Global security company Forcepoint has just released its 2018 predictions, and the report asserts that because of the wide-scale adoption of IoT

devices in consumer and business environments combined with the fact devices are often both easy-to-access and unmonitored, these devices are now a highly attractive target for cybercriminals wishing to hold them to ransom or obtain a long-term, persistent presence on the network.

Whilst ransomware of these connected things is possible, it remains unlikely in 2018. The main new threat that will emerge this year is what the report is calling ‘the disruption of things’. The belief is that, because the 25

T E C H N O L O G Y T R A N S F O R M AT I O N

IoT offers access to both disruptive possibilities and massive amounts of critical data, we will see attacks in this area, and may also see the integration of a ‘man in the middle’ (MITM) attack.

In short, IoT will not be held to ransom but instead become a target for mass disruption.

“At the heart of our predictions is a requirement to understand the intersection of people with critical 26

January 2018

data and intellectual property,” said Dr. Richard Ford, Chief Scientist at Forcepoint. “By placing cyberbehaviour and intent at the centre of security, the industry has a fighting chance of keeping up with the massive rate of change in the threat environment.

“We know that data leakage and ransomware will continue to be the focus for remediation and prevention,

“By placing cyberbehaviour and intent at the centre of security, the industry has a fighting chance of keeping up with the massive rate of change in the threat environment” DR. RICHARD FORD, Chief Scientist, Forcepoint IOT revenue is expected to surpass $1trn in the years up to 2027

but behavior-centric risks are now behind a multitude of security incidents. People’s behaviour should not be set in opposition to security: the two are not mutually exclusive.

“Users have the potential to unintentionally compromise their own systems in one minute and be the source of innovation in the next, but we can only empower users if we truly understand the ways they

interact with critical business data.”

Caution must therefore be exercised by anyone in business who is choosing to embrace IoT. Without doubt, the future of IoT is a positive, if uncertain, one. No doubt there are multiple barriers which will need overcoming if the technology is to reach its full, disruptive potential.

Could 2018 be that year?

Let’s wait and see.

27

Indeed shows how to make an ‘unlimited leave’ policy work Indeed’s Senior Vice President and Global Head of HR, Paul Wolfe, explains how and why the company implemented a policy of unlimited leave for staff Writ ten by STUART HODGE

PEOPLE

PEOPLE AS A COMPANY specialising in recruitment, it should come as no surprise that Indeed, the world’s number one job website, knows what it takes to be a good employer.

Indeed, which now has over 200mn monthly visitors to its global website, offers all manner of benefits to its 5,000 or so global employees including parental leave for both primary and secondary caregivers, adoption assistance, back-up child care, student loan repayment management, a wellness programme and even pet insurance.

The company also ensures that all offices are stocked with healthy snacks and beverages, with remote workers receiving a monthly box of snacks, similar those available onsite.

Indeed implements a casual dress code in open offices with convertible desks that offer a sitting or standing option for employees, and there is plenty of comfy seating and spots where employees can go for some quiet time or one-on-one meetings.

Communication access is also a premium consideration, with Indeed ensuring that video conferencing

Indeed believes it helps to have spaces for staff to break out, work and collaborate. Opposite: Indeed’s 9th floor terrace at its New York office.

30

January 2018

“ Compensation consistently ranks as the least significant factor when it comes to considering what makes people happy at work” – Paul Wolfe, Senior Vice President and Global Head of HR.

is available for all employees to connect with the rest of the company’s global workforce.

But despite that myriad of resources and benefits available to help keep employees comfortable and happy, there is still one policy we are yet to mention which seems the most innovative and potentially groundbreaking of them all: Indeed allows all of its employees unlimited leave.

Under what the company calls its ‘Unlimited PTO’ policy, employees can take as much time as they wish

– for sickness, personal days or vacation days. There are no limits.

A company statement says: “Open PTO empowers current employees, makes for happier workers in the long-term, and also demonstrates to potential talent that the company cares about the health and wellbeing of its employees.

“Beyond salary and benefits, most workers will gravitate towards opportunities that are employeecentric. Compensation consistently ranks as the least significant factor when it comes to considering what 31

PEOPLE makes people happy at work.”

This last statement is backed up by findings in the company’s own Workplace Happiness Index, 2016.

Indeed considers the unlimited PTO policy to be an unmitigated success, so we caught up with the company’s Senior Vice President and Global Head of HR Paul Wolfe to find out more.

“An engaged workforce is critical - if you don’t have an engaged workforce, you are going to be facing constant turnover, low productivity and a lacklustre employer brand,” he says.

An engaged workforce is really

32

January 2018

the foundation for a successful company and a company’s greatest asset - a happy employee is your best brand ambassador.

“These days it’s rare that you would interact with a candidate who hasn’t researched your company either formally using tools like Indeed Company Pages, or informally by asking their family, friends and extended network what they think about your company brand.

Happy employees will have strong messages to share about why your company is a great place to work.

Chill out areas help to keep staff happy and motivated

“ We believe that trusted, empowered and rested employees have a better chance of being happier and also performing better” – Paul Wolfe, Senior Vice President and Global Head of HR “Companies who are actively engaged in offering a rewards culture need to make sure they are promoting it in their job descriptions to help bring candidates in, and companies who are struggling with retention should think about ways they can make their environment more attractive to effectively compete for talent.

“Ultimately, the investment it takes to create a supportive work environment is rewarded with happy, highperforming and retained employees.”

And unsurprisingly, the policy proved mightily popular with staff.

“It was extremely well received and is very popular with our employees,” Wolfe says. “Part of the reason this

33

PEOPLE is successful is that we are showing we trust our employees to take the amount of time off that makes sense for them and their roles.

“We also encourage people to take time off: managers have conversations with employees who aren’t taking time away, and also take time away themselves to set a good example that rest and recuperation is important. We consider our paid PTO programme a success because employees have taken a healthy amount of time off and simultaneously been very productive.

“ These days it’s rare that you would interact with a candidate who hasn’t researched your company” – Paul Wolfe, Senior Vice President and Global Head of HR

34

January 2018

In fact, we saw a 28% increase in the number of days taken off by employees after the first full year.”

The unlimited leave policy is not a global first. It remains pretty rare but there are other companies within the technology sector who have done the same or similar – however, the size of Indeed as a company makes its rollout of this kind of policy particularly noteworthy.

Where did the idea come from for Indeed to do this and how does it make sure that employees

Open-plan eating and meeting spaces (above) along with chill out areas (below) help staff unwind yet remain productive

don’t abuse the privilege?

“We believe that trusted, empowered and rested employees have a better chance of being happier and also performing better,” says Wolfe.

“Our leadership team thought through the pros and cons of implementing an Open PTO programme and the benefits were overwhelmingly outweighing any cons. Ultimately, we want to create a great work environment for our employees so they can, in turn, help others find great jobs as well.

“The open paid time off policy was rolled out on a global scale at Indeed, and managers were provided with FAQs and support on monitoring their team’s time off. The unlimited vacation policy also reflects Indeed’s core mission of helping employers attract the talent they need, and job seekers find work that they enjoy.

“Our managers are responsible for approving time off - so we don’t really have any issues of abusing the policy. Managers and employees work together on discussing PTO and covering off on responsibilities during time away.”

It seems then like a good idea,

well-executed, by a successful company. As well as the higher performance of a highly-motivated and cared-for for workforce, what other positive benefits has Wolfe seen as a byproduct of the policy?

“Indeed is a rapidly growing global company,” he explains, “so like any growing company, we have to make sure we are keeping engagement high as we grow and that we don’t lose our culture and the things that make Indeed a great place to work.

“Numerous factors go into this: the office environment, the kind of work staff are doing, their manager and team, to name just a few.

You have to work on all of these aspects which in concert contribute to an engaged workforce.

“And tenure is certainly a byproduct of motivated employees. We want to keep people that we hire with Indeed as long as we can, and motivation is critical to that.

“We realise it is unlikely we will keep all of our employees for the length of their careers, but while they are at Indeed, we want them to be happy, and if they decide to leave, we want them to look back at their experience with us positively.”

35

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

Can the UN and World Bank’s ‘Roadmap for a Sustainable Financial System’ lead to a brighter tomorrow?

A range of commentators have mixed reviews on the potential impact of research from the UN’s top environmental body and the World Bank Group Writ ten by STUART HODGE

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

AXA and the United Nations Environment Program Inquiry held a conference to discuss ‘New Rules for New Horizons: Reshaping Finance for Sustainability’

SWEDISH FINANCE AND sustainability expert Sasja Beslik knows that things need to change: the status quo with the current construction of the global economy and the rate and means by which we are using the planet’s resources is not sustainable.

Beslik, one of his country’s foremost experts on finance and sustainability, feels an awakening and a global 38

January 2018

recognition of the need to reshape how financial challenges are looked at is necessary to effect meaningful change and bring long-term solutions.

At the end of last year, the UN’s top environmental body and the World Bank Group released a roadmap “to help governments and the private sector design a global financial system that is fit-for-purpose”.

The research found that climate

“ The challenge is not about what to do any more, the challenge is how to do it and how quickly you do it�

SASJA BESLIK, Head of Group Sustainable Finance at Nordea Bank

action has opened up an initial investment opportunity of $22.6trn from 2016 to 2030 and stressed how the next two years will be crucial to build on existing initiatives and finance sustainable development globally.

Beslik is pleased to see a progressive move towards recognising the issues we are facing, but is adamant that this can only afford to be the mere 39

40

January 2018

The roadmap is built on traditional logics that are linked to alternative and innovative finance

S U S TA I N A B I L I T Y beginnings of any real progress.

“The roadmap is a very good first step, but the devil is in the implementation side,” he says.

“The challenge is not about what to do any more, the challenge is how to do it and how quickly.

“When I started working 10 or 15 years ago, sustainability was not on the agenda in the financial sector, but now it is. We all agree that we have responsibility but now we need to figure out how to meet it.”

The UN and World Bank research backs Beslik’s assertion, showing

“ The UN and World Bank roadmap for a sustainable financial system includes three major insights: a definition of sustainable finance, clear mapping and certain actions” ARINE GIRARD, Finance Professor C at Audencia Business School

that policy and regulatory measures targeting sustainability have grown 20% year on year since 2010.

“I think it’s a very ambitious road map,” Beslik continues, “but a good first step. The magnitude of this transition that we need to happen in the financial sector is huge, but it’s so needed. And it needs to happen much more quickly, because while you and I can do things on a personal level to, say, reduce our private impact, we are digging a hole beneath ourselves if we don’t get financial systems to act much more swiftly on this.”

But is Beslik, who works as Head of Group Sustainable Finance at Nordea Bank, surprised at how often these challenges are ignored by vast swathes of the market?

“Saying we have a long way to go is an understatement, but all of us have seen more focus on sustainability within the financial sector over the last three years, purely because more players are understanding the market opportunity in this from the product side. Also I think some are feeling more pressure, both from regulators and from customers, and they think they need to take a stance on this.”

Carine Girard, Finance Professor 41

S U S TA I N A B I L I T Y at Audencia Business School in Nantes, France, believes the report has provided clarity.

“The UN and World Bank roadmap for a sustainable financial system includes three major insights: a definition of sustainable finance, clear mapping and certain actions,” she says.

“These proposals were developed from a multi-level analysis that was international, national and marketbased. This analysis integrates not only the stakes in terms of governance, but also environmental, social and governance risks as well as We have seen more focus on sustainability within the financial sector over the last three years

42

January 2018

impact investing. Such an approach is designed to ensure effectiveness, efficiency and resilience.

“This type of financial system makes sense because it is built on traditional and local logics using high-impact drivers that are linked to alternative and innovative finance.”

Technology investor Jeff Stollman has an MA in economics and many years spent as an environmental economist, and he takes a different stance.

“The concept addresses currently popular trends, but is, itself, unsustainable for a number

Proposals were developed from international, multi-level analysis

of reasons,” claims Stollman, who currently manages Rocky Mountain Technical Marketing, Inc. “A key element of the programme is redirecting negative externalities, especially environmental externalities, so that they are accounted for in the cost of production.

“Problems with that could include businesses resisting adding cost to their products because it will make them less marketable, or because the redirection of externalities will be uneven across industry sectors and across pollutants and other deleterious impacts, there will be

‘ The entire financial sector since 2008 has been facing a cultural revolution needed within the industry’ ongoing crises moving from industry to industry as products that have grown costly are displaced with alternatives.

“This will upset the employment market and create a significant downward shift in the value of capital assets used to produce goods 43

S U S TA I N A B I L I T Y and services that are impacted. In turn, this will cause bankruptcies of industries which are no longer sustainable. And while this will be beneficial to the environment, it will have an uneven impact on those displaced by the shrinking or closing of their employers’ businesses.”

It is perhaps a change in consumer attitudes that will be necessary to effect real change, but even then Stollman points out this could be problematic. “Another issue is that one of the biggest impacts on the global environment arises from wanton consumerism: people buying “stuff” because advertising makes them want things that they don’t need. Environmentally, much could

‘ Beslik is adamant that the release of the report was a ‘crucial’ step in the hope of any meaningful move towards a sustainable global financial model’ 44

January 2018

be gained by merely reducing this surplus consumption, but doing so would cause a massive contraction of global markets. How will we keep people employed if we stop producing this surplus?” he asks.

“I could go on endlessly about the deficiencies of the program, but I don’t mean to suggest that it is not worth pursuing. I just expect that the results will be mixed and the benefits will remain hard to justify.”

Beslik understands Stollman’s concerns but is adamant that the release of the report was a ‘crucial’ step in the hope of any meaningful move towards a sustainable global financial model. He wants to see more guidance given to politicians to help lobby for legislative change and feels there is certainly an appetite for this.

“The entire financial sector since 2008 has been facing a cultural revolution needed within the industry,” he says. “I think it now demands awareness from the top. The leaders of the big financial institutions really need to step up and show what to go for with regards to sustainability within the role of the financial sector.

“Still, the majority of the financial institutions in the world do not educate

A change in attitudes will be necessary to effect real change

financial analysts and professionals with a full understanding of sustainability aspects related to their future jobs, and how the investment or lending of banking decisions will impact the societies they live in.

“We need to reform the educational system, because then you get people that are educated about this in the financial system. They will embrace the change and make that change happen.

“I think we are at the beginning of a very big shift, with big players getting engaged, and we see a lot of interest from customers and clients.”

For Beslik, it comes down to a triumvirate of issues. “I call it a

triangle,” he explains. “You have an income inequality or income distribution on one hand. Then you have climate change as one of the sort of risks that are not related to any particular society, it’s more of a global issue. I think income inequality is also.

“The third one I think is related to transparency and participation – how transparent are you about your business and the way you run it, and also how do you participate in solutions that we need as a society going forward?

“I think these three things interact with each other in a very interesting way going forward, and they all demand a quite big mental shift.”

45

CITY FOCUS

HONG Headline

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

HONG KONG’S NEW FINTECH INITIATIVES TO RETAIN FINANCIAL HUB STATUS Writ ten by AUTHOR

Writ ten by OLIVIA MINNOCK

KONG

CITY FOCUS

STAYING AHEAD OF THE CURVE – SEVEN FINTECH INITIATIVES KEEN TO MAINTAIN its status as a financial hub amid worries tech players were being left behind in the city state due to too heavy a focus on larger existing financial institutions, the Hong Kong Monetary Authority (HKMA) introduced a series of fintech initiatives at the end of last year. It is 48

January 2018

hoped these will encourage fintech innovation and open up “a new era of smart banking” in Hong Kong.

Norman Chan, the HKMA’s Chief Executive, stated that upgrading to new levels of smart banking is “not just something nice-tohave but a must”. He advocated

cooperation between tech companies and the HKMA and said that the initiatives would “allow financial services and transactions to be undertaken with greater mobility, ease, speed and safety”.

FASTER PAYMENT SYSTEM (FPS): To launch in September 2018, the FPS will enable the use of mobile phone numbers and email addresses to make payments in HKD or yuan.

It’s also hoped a common QR code standard can be developed to widen the use of mobile payments.

ENHANCED FINTECH SUPERVISORY SANDBOX (FSS) 2.0: Hong Kong’s “sandbox” (testing environment) will be opened up to technology firms and will include a chatroom to provide fast feedback at early stages of projects. The HKMA, Securities and Futures Commission and Insurance Authority sandboxes will all be linked to enable trials of cross-sector fintech products.

VIRTUAL BANKING: This will be promoted and the 2000 Guide to Authorisation of Virtual Banks will be reviewed.

BANKING MADE EASY: This new initiative will try to minimise regulatory friction to make the customer’s experience easier.

OPEN APPLICATION PROGRAMMING INTERFACE (API): Policy framework on Open API has been formulated to facilitate development and wider adoption of API, which will make collaboration between banks and tech firms easier.

CROSS-BORDER COLLABORATION: The latest developments here include cooperation with Shenzhen’s Office of Financial Development Service and with the development of Distributed Ledger Technology (DLT) to digitise trade finance processes, with the potential of Hong Kong banks connecting with Singapore this way.

ENHANCED RESEARCH AND TALENT DEVELOPMENT: HKMA will collaborate more with the Hong Kong Applied Science and Technology Research Institute, Science Park and Cyberport to promote the introduction of new technology and processes.

49

CITY FOCUS

BIG BUSINESS IN HONG KONG CHINA MOBILE: China Mobile Ltd was incorporated in Hong Kong in 1977 and is listed on both the New York and Hong Kong stock exchanges. It is currently the leading telecommunications provider in mainland China. The company employs over 460,600 people serving 849mn mobile customers and over 77mn wireline broadband customers. Its ultimate shareholder controller is CMCC (China Mobile Communications Corporation) which owns about 73% - the remainder is held by public investors. China Mobile is owned by China Mobile 50

January 2018

Hong Kong Group Ltd and ranks 21st on Forbes’ Global 2000 list.

CNOOC: CNOOC (China National Offshore Oil Corporation) Limited was incorporated in Hong Kong in 1999 and is listed on both the New York and Hong Kong stock exchanges.

The group is the largest producer of offshore crude oil and natural gas in China. It has operations based in Bohai, South China Sea, East China Sea and offshore China, with assets across the world. It has approximately 3.88bn BOE (barrels of oil equivalent) worth of reserves and over 19,400 employees

‘Li Ka-Shing is the richest person in Hong Kong and comes in at number 19 on Forbes’ billionaires list’ across the world. The group is 529th on Forbes’ Global 2000 and comes in at 60 on the global “best employers” list.

CK HUTCHISON HOLDINGS: CK Hutchinson Holdings was brought about by the merging of Hutchison Whompoa and CK Hutchison. CK Hutchison is one of the biggest companies listed on the Hong Kong exchange and operates across five main business areas: ports, retail, infrastructure, energy and telecoms.

The holding company has a 66% share in Hutchison Telecommunications HK Holdings Ltd, 88% in Hutchison

Telecoms Australia Ltd, 76% in CK Infra Holdings Ltd, 60% in Hutchison Chine MediTech Ltd, and also has a stake in Husky Energy Inc, Hutchison Post Holdings Trust, TOM Group Ltd and CK Life Sciences International.

Chairman Li Ka-Shing is the richest person in Hong Kong and comes in at number 19 on the Forbes billionaires list. Forbes puts his worth at $33.8bn and his companies employ 310,000 people in more than 50 nations. Li has invested over $28bn in Europe over the past five years, and was an early investor in Facebook in 2007. He has also invested in Siri and Spotify.

51

ABOUT HONG KONG THE CITY-STATE OF Hong Kong is one of the most competitive financial and business hubs in the world.

Hong Kong joined the People’s Republic of China in 1997 and due to the “one country, two systems” agreement, Hong Kong is not subject to many of the strict socialist policies in place in China and, as such, is independent in many matters with the exception of foreign and defence policy. This prompts some companies

operating in China to base themselves in Hong Kong. In recent years its connection with China is being strengthened by financial links and a high number of goods travelling to and from China pass through Hong Kong.

Hong Kong’s major industries currently include shipping and financial services as its previously significant manufacturing industry has been taken over by mainland China.

7.3mn 18.3% $414.6bn 2% 0.1% 3.3% 52

POPULATION

GOVERNMENT SPENDING OF GDP

GDP

BUDGET SURPLUSES OF GDP

UNEMPLOYMENT

PUBLIC DEBT OF GDP

January 2018

CITY FOCUS

China Mobile is based in Hong Kong and ranks 21st on Forbes’ Global 2000 Hong Kong has a population of 7.3mn Hong Kong has a GDP os $414.6bn

‘The city-state of Hong Kong is one of the most competitive financial and business hubs in the world’ 53

TOP 10 FASTEST-

GROWING TECH COMPANIES

IN ASIA

A look at Asia’s fastest-growing technology companies, taken from Deloitte’s 2017 Technology Fast 500 rankings Written by OLIVIA MINNOCK

T O P 10

09

PIONEER ENERGY (JIANG SU) www.pioneerenergy.cn/en

10

GUANGZHOU LI ZHI NETWORK TECHNOLOGY LTD Guangzhou Li Zhu Network Technology Ltd is a Chinese communications tech company which exhibited 2,695% growth over the past year.

The company develops global voice processing platforms, including storage and sharing to help people share their voice talent. The company not only develops the software but runs Litch FM, a Chinese internet voice “ecosystem” where users can record clips, edit, store and listen to them. The company was founded in 2013 and is, unsurprisingly, based in Guangzhou.

56

January 2018

Chinese clean energy tech company Pioneer Energy, or Jiang Su, is a developer of heat storage technology and products. It is a foreign-owned enterprise based in China, with its main facility based in the city of Zhangjiagang in Jiangsu province. Pioneer is comprised of a multinational tech team and has so far developed five “effective, long-lasting” formulas, three of which are now produced commercially. The company was established in May 2011 and so far has applied for 42 patents of which 12 have been granted. It is also forming strategic partnerships with several Fortune 500 companies across the globe. Its yearly growth was recorded as 2,735% and the company clams it has a strong commitment to “developing highly efficient clean energy and energy saving technology”.

07 NEW STUDIO MEDIA GROUP

08

ICD CO LTD www.icd.co.kr ICD stands for Innovation for Creative Devices. This South Korean tech hardware company is based in Anseong and was founded in 2002.

It produces and sells technology hardware like digital display equipment as well as parts. Its three business segments are IT (equipment business), NT (parts business) and BT (healthcare business) which produces biofriendly technology. The company’s philosophy centres around growth through technological convergence.

The company had impressive yearly growth of 2,954% last year and CEO, Lee Seugn Ho, said this is because “ICD has built up a good reputation from customers with its leading technology, and successful advances into Korean, Taiwanese, Chinese and Japanese markets” enabling it to “grow as a global company”.

Beijing New Studio Media was founded in 2012 and has since received investment from big names like Alibaba Group, Sequoia Capital, Swiss Capital and Star Capital. Initially, it relied on existing online video sharing platforms but as of 2015 it is a new media film and TV producer in its own right. It is now moving into the production, publication and derivative business of new media film and TV products with its own new film study community platform brand. The company is mainly focused on the youth demographic in China. Last year’s growth was recorded as 3,208%.

57

T O P 10

05

BEJIING DUIAWANG EDUCATION & TECHNOLOGY CO LTD

06

EGIS TECHNOLOGY INC www.egistec.com Egis Technology is a Taiwanese software company headquartered in Taipei. In the past year it has exhibited growth of 3,580%. Egis designs, researches, develops, tests and sells fingerprint sensor devices across the globe. It offers mobile authentication solutions and wearable tech. The company states it aims to “be the ultimate fingerprint security brand with the largest user base in the world”.

Currently Egis has over 100 patents worldwide and is popular thanks to the high resolution, small size and low cost of its fingerprint sensors.

58

January 2018

Duiawang, a Chinese media company, offers various translations in English as “right, ah,” “yeah ah,” or “yes yep” – all of which express the moment of understanding within a learning process. This is because the company is the leading internet education enterprise in China. It provides online courses, often including live elements and additional support such as forums. Duiawang’s philosophy is described as “free, low cost mobile learning” and it aims to make online education, particularly in vocational subjects, available to everyone. The company’s growth for the past year is reported at an impressive 5,179%.

03

QINGDAO YEELINK INFORMATION TECHNOLOGY CO LTD www.yeelight.com/en_US/introduce

04

WELAB HOLDINGS LTD www.welab.co/en WeLab Holdings is a Chinese software company which offers “seamless mobile lending experiences”, often through partnerships with financial institutions which use its technology to offer fintech solutions to customers.

It operates key Chinese mobile lending platform, Wolaidai, and Hong Kong’s leading online lending platform, WeLend. These platforms offer services like personal loans, online bank transfers and 3HK handset instalment plan products. The company bases its main office in Hong Kong with additional locations in mainland China. WeLab’s 2017 growth is reported by Deloitte as 7,130%.

Chinese software company Yeelink, which has brands entitled Yeelink and Yeelight, was founded in 2012 and is a company which integrates design, research and development, production and marketing. The company produces “smart lighting” and has been invested in by smartphone giant Xiaomi. It has also partnered with mobile and wearable companies around the world including Misfit.com in order to ensure its lighting products work smoothly with smartphones and wearable devices. Among the company’s team are engineers from German lighting company ERCO and Telecom company Alcatel-Lucent. The company says its aim is to “continue to develop comprehensive consumer and industrial smart lighting solutions based on the real and emerging needs”. Yeelink’s growth has been reported as an impressive 7,189%.

59

T O P 10

02

GUANGZHOU CO LTD www.fengei.com This Chinese software company was established in 2010 and works on game research and development, game platform operations and game engine research and development.

The company is made up of staff with experience from Netease and other top development companies.

Guangzhou Fengei says its focus

60

January 2018

is “creating a colourful world of entetainment”. Its premium web games include “Card Five Tiger”, “Tuolong Paoshu” and “Three Kingdoms Tower Defence”. The company currently operates in the Chinese and Southeast Asian markets and in the past year alone has grown by 7,481%.

01

WUHAN DOUYU NETWORK TECHNOLOGY CO LTD www.douyu.com Wuhan Duoyu Network Technology Co Ltd is a Chinese communications tech business which provides webbased livestreaming and sharing sites.

It is the first unicorn in Wuhan, Hubei, having exceeded a value of $1bn since its foundation in 2014 by CEO Zhang Wenming. The company is said to

be engaged in the broadcast of live games, sports, variety shows and entertainment. It also has over a 70% share in the domestic live broadcasting market. In just a year it has increased in value by 70,776% and its next round of funding is expected to include some state-owned enterprises.

61

BNP Paribas Cardif in Japan: Leading the industry with customer care Written by Nell Walker Produced by James Pepper

63

Joel Edgerton and Colm Kennelly explain how BNP Paribas Cardif has struck the balance between technology and customer experience to dominate the insurance market in Japan

W

hile the world of insurance is ostensibly centred around human experience, it’s amazing how often that focus falls by the wayside, particularly as technology becomes ever more of a priority. BNP Paribas Cardif, the insurance arm of BNP Paribas, is working tirelessly to buck this trend.

64

January 2018

Joel Edgerton, COO, and Colm Kennelly, CIO, have been fronting a technological transformation of the Japanese arm of the business. With backgrounds in business, finance, and engineering between them, the pair boast a powerful grasp of both technology and economics in order to lead this transformation.

S U P P LY C H A I N

BNP Paribas Cardif head office

“We are very committed to the Japanese market. We have been growing faster than the market for about 14 years,” says Edgerton. “We’re not a normal insurance business – we work with partners on bank insurance which distribute our products. Facing strong competition, we realised that the best way we could compete

was with customer experience.

That started our transformation.”

As a result, BNP Paribas Cardif in Japan has stormed ahead of other businesses and shed competition, upgrading along the way without negatively impacting customers. According to Kennelly, the technology transformation

http://asia.businesschief.com

65

B N P PA R I B A S C A R D I F

Inside a Cardif office

66

January 2018

in Japan was a mountain to climb as opposed to a hill, but the payoff has been huge.

“The real battle in Japan is generating buy-in and building momentum and trust in terms of the vision, the mission, and the direction, which involves a healthy degree of change and disruption,” he explains. “Once you get to that point, you mold it all to Japanese values and culture which results in a team player mindset. It’s a very steep mountain initially, but the wonderful benefit is that when you do, you get a conveyor belt-type delivery mechanism where you can churn out quality delivery whilst building on trust and delegation that I don’t think you get in many other countries.”

Edgerton and Kennelly worked on creating the most amount of flexibility in the business transformation whilst catering to the requirements and culture of the nation they serve. BNP Paribas Cardif wanted to introduce more products and distribution channels, leading it to deconstruct core systems and rebuild them in a more modular way, ensuring a data-driven process and infrastructure.

“We can reuse our business logic and reuse data while moving in a way that’s flexible and agile,” says Edgerton. “We’ve got the architecture mapped out for the next five years to develop, in close coordination with our head office. We’ve already started building out pieces of it that are in place, and as we add new business functionalities

B N P PA R I B A S C A R D I F

they’re built into the new architecture.

Data is core to that, but the real impact is not so much on the technology as much as how we implement change. In particular, what is the customer experience impact of any given change?”

“We’re not a technology company, we’re an insurance company,” adds Kennelly. “We’ve got a laser focus on the fact that our mission is to deliver tailored, best-in-class and

fit-for-purpose insurance solutions to improve the risk management and quality of life for our customers.

Technology isn’t the be all and end all, because there will be cases where we have customers who are very receptive to and demanding of high technology, and customers who are the exact opposite. It’s very important that we have a real and accurate sense of what our customers are looking for.”

BNP Paribas Cardif utilises data to

The BNP Paribas 360° 2017 Corporate Film: Discover the other VR-based solutions available to BNP Paribas customers 68

January 2018

S U P P LY C H A I N

Cardif is part of the BNP Paribas Group better understand customers, first and foremost.

This extends from the most basic point of contact at the call centre, where BNP Paribas Cardif puts no limit to how long an operator stays on the line, to the most complex elements of any relationship between a customer and an insurer.

“We see a lot of possibilities about how we can create new and better interactions with customers,” says Edgerton. Kennelly adds: “What’s very important in Japan is trust, respect, sincerity, and commitment.

Delivery of superior product is the result, but it’s about the journey for us.”

“You hear customer experience buzz words all over the place,” Edgerton continues, “but we don’t want to do the same as everyone else.”

As such, the business organises its own

“Our mission is to deliver tailored, bestin-class and fit-for-purpose insurance solutions to improve the risk management and quality of life for our customers” Colm Kennelly, CIO

http://asia.businesschief.com

69

Neusoft Corporation, being a leading IT solution and service provider named to PwC's Global 100 Software Leaders.

Neusoft in Insurance Industry

25+ years with 40+ customers from China, Japan, America and Europe.

An end-to-end solution and service provider for insurers to enable digital transformation.

A trusted InsurTech partner to help insurers to innovate through modern technologies.

Modernization of Legacy Systems Mobility Public service KIOSK &

Enterprise Smart Terminal for Insurers

Automation & AI

BigData Analytics

Block Chain

Construction of New Digital IT Architecture

+86 411 84835531 zhang_jun@neusoft.com www.neusoft.com

LEADING IN DIGITAL Digital technologies and business models, are driving a dramatic shift in how we live and work. Companies are witnessing increased volatility, new forms of competition, new business models and pressures on existing revenue streams.

Cognizant is helping companies navigate this shift and reinvent their business, operations and technology landscape.

www.cognizant.com

S U P P LY C H A I N

version of customer experience around a Japanese concept called ‘omotenashi’, which translates directly into English as ‘hospitality’.

“In Japan, the word for ‘customer’ and ‘guest’ are the same,” says Edgerton. “The assumption with omotenashi is that you know your customer so well that you’re able to fulfil their needs without them asking. There is no difference between you and your customer.”

No longer needing to compete on price or product specifications, BNP Paribas Cardif concentrates on competing with this omotenashi concept, which is long-running and ever-evolving. Taking the time and effort to create strong relationships ensures a unique level of loyalty.

Kennelly is keen to point out that the audience any business needs to get on board first is its employees, long before customer partnerships can be forged, and that the unique way in which Japanese people work as a team is invaluable.

“The expectation is that the senior individual at the top of the

organisation provides a safety net if things go south, but there’s also an understanding of a level of support from the collective,” he states. “That’s what generates the belief, the trust, and the commitment. If anything goes wrong, the team will try to solve it with transparent communication and try to make decisions based on data.”

“The characteristic I’m looking for in new employees the most nowadays is curiosity,” Edgerton adds. “Employees that are willing to ask questions: ‘why is the customer happy or unhappy?

Why are we doing it this way? Why are we not doing it another way?’ In the same way, we do not want suppliers but partners that are willing to learn and grow together with us. It’s that curiosity combined with technology that’s really going to take us forward.

“For the companies adapting to technology change, the ones that will be successful are the ones keeping their core beliefs and focus on the customer, and use technology to benefit them. Otherwise you either rush to get the technology in place to survive, or get wiped out.

http://asia.businesschief.com

71

B N P PA R I B A S C A R D I F

“In Japan, the word for ‘customer’ and ‘guest’ are the same. There is no difference between you and your customer” Joel Edgerton, COO

72

January 2018

S U P P LY C H A I N

“We want to be in the first group.

We want to be an innovator, a pioneer, and not be scrambling for survival. We want to add value to the customer.”

For Kennelly, the customers must have a “meaningful and aligned experience with BNP Paribas Cardif” in order for the business to thrive. Currently, it appears that this mindset has been wildly successful for BNP Paribas Cardif, and allows the business to bask in confidence for the future while it moves ahead with advanced technology.

“We’re looking at what we do in terms of AI, in terms of business automation, IoT, mobile, cloud, social, and how that’s all underpinned by being a truly digital processdriven company,” Kennelly concludes. “We also need to challenge ourselves naturally in terms of whether what we’re doing is adding real value from the customer’s perspective. If not, apart from the mandatory topics which we have to do regardless of whether the customer sees the value or not, we shouldn’t be doing them.”

Transparent communication is an important feature of Cardif’s company culture

http://asia.businesschief.com

73

BEAUTY 4.0 The innovation and digitisation of Coty’s supply chain Written by Catherine Sturman Produced by Charlotte Clarke

75

Arya Gupta, Coty’s Procurement Director of Global Chemicals & Innovation, reveals how his team’s culture and technological knowhow has helped to drive profitable growth for the beauty industry giant

S U P P LY C H A I N

T

he beauty industry has grown exponentially. With cosmetics once worn solely by wealthy individuals or those on screen, the $445bn industry has seen established businesses overhaul their outdated corporate models amidst a diverse demographic landscape, intensifying competition, changing consumer tastes and the way beauty products are bought today. Established over a century ago, beauty product manufacturer Coty has been part of this revolution, and is witnessing the effects of digitisation on a global scale, with increased demands for products which are highly innovative and meet specific consumer demands at each market.

“Digital is disrupting the beauty industry in a big way. Buying behavior has changed dramatically and consumers want new products faster than before,” observes Arya Gupta, Coty’s Procurement Director of Global Chemicals & Innovation. With its worldwide manufacturing operations and R&D capabilities, the business is undergoing a significant transformational journey, guaranteeing exceptional and innovative product offerings in the Beauty space which are fully designed with consumers in mind.

“We believe in the freedom of self-expression.

It’s about being who you want to be. We want to empower this,” explains Gupta.

http://asia.businesschief.com

77

COTY

“Digital is disrupting the beauty industry in a big way. Buying behavior has changed dramatically and consumers want new products faster than before�

Arya Gupta Procurement Director of Global Chemicals & Innovation, Coty

78

January 2018

S U P P LY C H A I N

“We want to make sure that we live this every day. We want to be inventive and create possibilities for consumers.

The concepts of diversity, individuality and authenticity are central to this.”

Priding itself not only on its agility and commitment to adapt to the pace of change, Coty has expanded beyond its core markets in Europe, North America and Brazil, China and Asia-Pacific, gaining approximately US$9bn in revenue in 2017. Such is its success, it aims to further cement its presence as a leading player within the beauty industry worldwide.

Own it. Drive it Spread across the Americas, the EU and APAC, Coty’s mission to remain a key player and create longterm shareholder value has seen it retain its unique culture, which Gupta notes with immense pride.

Shaped by its core values, Coty’s business spirit of entrepreneurship has seen its lean, diverse organisation become encouraged to not only share a passion for beauty, but bring different solutions to the table to the delight of its consumer base.

“Our culture is a key differentiator for us, and a good example is our ‘Own it. Drive it mentality’”, continues Gupta. “This sets us apart from our competitors as we approach every business decision with the mind-set that it is our own company and money in which we are investing.”

“Following two mega mergers and acquisitions with Procter and Gamble and Hypermarcas, we began to re-define ourselves while embarking on this massive transformational journey. Our purpose, beliefs, charter and corporate identity are the very heart of who we are at Coty,” he says.

Supplier strengths Coty’s ‘Own it, drive it’ mantra has seen the business’s global category procurement team become an essential bridge between the business and the global supplier base.

“Mapping our business requirements with what our supply base can deliver has enabled us to provide innovative solutions and unique ways of approaching business problems,” observes Gupta.

“We build strong partnerships

http://asia.businesschief.com

79

Create an explosion of colour with JarocolÂŽ Hair Dyes Vivimed specialises in the development, manufacture and global supply of JarocolÂŽ hair dyes. Vivimed offer a full range of high quality hair dye intermediates for use in permanent, semi permanent and temporary hair colourant formulations.

Click here to visit our website

S U P P LY C H A I N

with marketing and research and development teams at Coty to get an in-depth understanding of what the business needs. With this knowledge, we map it with our expertise on the company’s supply base – from our Core supplier partners to strategic players (and their particular goals and drivers), to trends in innovation and shifting business models,” he adds. “The entire effort is to ensure that our action supports our overarching business objectives and realise the company’s broader aspirations.”

Responsible for leading the transformation of Coty’s strategic sourcing destinations for chemical ingredients in Asia, Gupta has not only driven, but as part of a very lean and strong global category team, works to continuously strengthen Coty’s ambitions to achieve top line growth and bottom line profitability, achieving exceptional results sustainably. Fully exemplifying best-in-class category procurement for Chemical ingredients, the team is reinforcing and securing significant value to the business and its operations.

“This is particularly impactful for a fastgrowing organisation like Coty, where speed to market is key,” says Gupta.

1904

The year that Coty was founded

$9 BN

The annual revenue for Coty

Technological investment Throughout its transformation journey, Coty has invested in overhauling its traditional processes and implemented best-in-class, cloud-based point solutions and custom-built systems. The use of value

http://asia.businesschief.com

81

COTY

82

January 2018

S U P P LY C H A I N

“Mapping our business requirements with what our supply base can deliver has enabled us to provide innovative solutions and unique ways of approaching business problems” Arya Gupta Procurement Director of Global Chemicals & Innovation, Coty

engineering within its procurement tools has also enabled the business to cater to the growing demands of its consumers, make quick, informed decisions within the development of new products and scale up its sourcing and procurement capabilities in alignment with company growth.

“Technology and automation are supporting us in bringing an even deeper market insight from a category sourcing excellence point of view. It is helping us in Supplier Relationship management (SRM) through precise segmentation, identification and definition of the Core,” notes Gupta. “Also, it lets us obtain a real-time view across all our business lines, functional areas and endeavors around the globe to be able to connect the dots and make timely recommendations.”

“Additionally, it improves the Procure to Pay process especially measurement of procurement results and risk management,” he says. “To all of that, when you add excellence in execution from a high-octane team – it translates to ‘being brave and going beyond’ – a highly potent combination for the business.”

Increased consumer awareness The rise of digital tools and technologies leading to increased consumer awareness has led suppliers, consumers and stakeholders to look closely at ways in which raw materials, ingredients and chemicals are routinely sourced by companies in the manufacturing of new products.

Filtering into Coty’s values, the business is continually looking at

http://asia.businesschief.com

83

COTY

new, innovative ways to increase its sustainable focus across its operations. To this effect, it has signed the Global Compact United Nations (UNGC) initiative to support the 10 principles surrounding human rights, labour, the environment, and anticorruption across its entire workforce.

It has also implemented a number of in-house sustainable programs to tackle its global, social and environmental challenges head on.

Additionally, similarly to building beneficial relationships with its suppliers and stakeholders surrounding its procurement and supply chain operations, Coty’s Responsible Beauty Initiative (RBI) was launched in collaboration with Clarins, Groupe Rocher and L’Oreal.

Operated by EcoVadis as a common foundation for supplier assessment and interaction, the RBI will further Coty’s overall performance throughout the beauty supply chain and details deep insights into Coty’s sustainability efforts within its procurement operations. Gupta notes that it will therefore bring together the global beauty industry, deliver long-term positive change and maximise Coty’s shared value.

“It will amplify members’ efforts to boost sustainability in their supply chains, while ensuring the suppliers of the industry have sound ethical, social, and environmental business practices in place,” he adds.

“We recently became a member of the Roundtable for

“Technology and automation are supporting us in bringing an even deeper market insight from a category sourcing excellence point of view, especially in the management of supplier contracts and agreements” Arya Gupta Procurement Director of Global Chemicals & Innovation, Coty

84

January 2018

Coty sells billions of dollars worth of products around the world

Sustainable Palm Oil (RSPO). A very important milestone towards responsible category sourcing.�

It is clear to see that Coty’s transformation journey has seen it cater to emerging trends and, but most importantly seen the business re-evaluate its purpose. Leveraging tools and technologies to garner increased efficiencies in its supply

chain and speed to market, it has long-term ambitions to fully liberate the diversity of its consumers and become a lead voice in celebrating and liberating beauty.

http://asia.businesschief.com

85

Valmet: Delivering supply chain value to customers and partners Written by Laura Mullan Produced by Charlotte Clarke

VA L M E T

88

January 2018

S U P P LY C H A I N

With a lean, sustainable approach, Valmet has become a global leader in the industry for putting its customers first

A

t Valmet, one value underpins everything the company does – its desire to go above and beyond when serving its customers.

As a leading developer and supplier of technologies, automation, and services for the pulp, paper and energy industries, the Finnish company has gained a name in the sector for its customerorientated, value-driven approach.

Manish Sharma, Director of Supply Chain, Asia-Pacific, believes that it is the company’s promise to deliver exceptional customer performance which is key to its success.

“We are very customer-oriented,” explains Sharma. “When our customers are successful, then we are successful, and if we are successful then our suppliers are also successful – it’s a win-win situation for us.”

Working closely with suppliers Valmet’s services cover everything from spare parts and consumables to maintenance outsourcing and plant improvements. Valmet also offers remote service solutions.

However, regardless of the technology, all of the company’s work is driven by its promise to deliver value-added services.

As a result, by collaborating closely with its suppliers, Valmet strategically develops its partners to ensure they are the right fit in terms of cost and value.

“We work very closely with the suppliers because we are committed to giving value both to our customers and back to our partners,” Sharma says.

“Some of the products we are manufacturing are being supplied globally and they are being

http://asia.businesschief.com

89

VA L M E T

customised to meet the specific needs of each of our customers. Therefore, we always need to know whether the needs and the requirements of our customer will be met and understood by our suppliers.”

Technological innovation With 220 years of industrial history, Valmet garnered a rich wealth of expertise but, despite its current knowledge, it is also keen to promote continuous improvement and innovation.

Driven by its customers’ needs, Valmet has invested heavily in R&D, working on products that enhance raw material, water and energy efficiency and promote the use of renewable materials.

With over 400 R&D professionals around the globe and about 1,400 protected inventions, technological know-how is the backbone of Valmet’s value creation, says Sharma.

“For Valmet, technological innovation means that we can create added value for the customer,” he explains. “There have been lot of new solutions launched into

90

January 2018

the market which can be more efficient, more reliable and more beneficial for the customer.

“We are sharing the knowledge we have gained also with our suppliers who are mastering their own technologies. It’s a question of coming together, collaborating, developing new technologies and new ways of doing things so that we are continually improving and creating more value for our customers.”

Lean operation By harnessing its technological prowess, Valmet is not only trying to drive efficiency and reliability, it is also trying to adopt a lean approach.

“We also have to innovate our operations to see what costs we can lower,” explains Sharma. “So, for example, we are trying to see if we can bring in some alternative raw materials into use which are more flexible, leaner and which take less time to manufacture or deliver to the customers.”

Design-to-cost is an increasing focus for the company, and it strives for this through its supplier relationship management and its lean approach.

S U P P LY C H A I N

Valmet has around 400 R&D professionals around the globe and about 1,400 protected inventions

http://asia.businesschief.com

91

VA L M E T

“It’s a question of coming together, collaborating, developing new technologies and new ways of doing things so that we are continually improving and creating more value for our customers” – Manish Sharma - Director, Supply Chain, Asia-Pacific

YOUR INDUSTRIAL PROJECT TRANSPORT SPECIALIST Martin Bencher specializes in the project managament and execution of projects and transport of oversized/heavy cargo worldwide.

• Experienced in handling industrial project transports • Supply chain management • Full scope QHSE and risk management • Port operations, onsite works and engineering • Customs and project documentation • Offices and partners worldwide Martin Bencher Group Tel: + 45 86 122 699 | headoffice@martin-bencher.com | www.martin-bencher.com

92

January 2018

S U P P LY C H A I N

Valmet believes in right first time approach which helps to increase cost-efficiency and drive value.

Boasting an extensive supply chain with around 10,000 active suppliers in over 50 countries, Valmet also focuses on procurement savings to enhance profitability. By increasingly sourcing from cost-competitive countries, subcontracting more and consolidating its shipment and warehouse network, the Finnish company is striving to improve its profitability and value.

Championing sustainability With its technological ingenuity, Valmet is also keen to promote responsible business practices that champion sustainability. Whether it’s environmental concerns or health and safety, it seems that sustainability is an integral component of Valmet’s DNA. Valmet is recognized as one of the world’s sustainability leaders, and was included into the Dow Jones Sustainability Index for the fourth consecutive year in 2017.

“We are trying to add value to our innovations by improving their efficiency, optimising

quality and in turn maximising customer satisfaction. We can’t do without championing sustainable practices,” notes Sharma.

“Some of the things we’re doing include bringing in energy efficient solutions based on biomass and waste solutions. We’re also talking about energy, efficiency, cost efficiency and looking into where we source our materials.

“We also have to make sure that we comply with all the compliance rules of safe materials, sustainable techniques, and safety standards.

This is all part of sustainability and we aim to continue to develop sustainable practices globally.”

Continuous improvement With operations now in about 30 countries and 160 locations, Valmet is, by all means, a global company. But Sharma doesn’t underestimate the work that a global company demands.

“We are a global company and so I’d say the main challenge that we face today is adapting to local customers’ needs,” reflects Sharma.

http://asia.businesschief.com

93

VA L M E T

“There are cultural challenges.

There are language challenges.

These are things we need to consider when doing business in a new country. You have to be flexible. You have to be a global company with a local adaptation so that we continue to deliver whatever is being asked of us by our customers. This is one challenge for us. We need to continuously look at and review ourselves, and we always need to adapt.”

Customer-focused At the heart of Valmet is its commitment to moving its customers’ performance forward and becoming a global champion in serving them.

Thanks to its sustainable ethos and technological prowess, the company has seen both fiscal and brand success and is looking forward. Sharma is optimistic that

94

January 2018

this success will continue as Valmet positions itself to target high-growth trends and sectors in the industry.

“We’ve also seen that the demand for tissue is growing because, as people’s living standards improve, then there will always be a linked growth in tissue and hygiene,” notes Sharma. “In the next five years, I believe this is going to be one of the leading areas in the sector and so these are key areas of focus for us.

“On the energy side, there has been a lot of focus on biofuels in countries like Japan and Korea because people have seen that other energy resources such as nuclear are not as human-friendly,” he adds. “They are also looking into alternative ways of producing energy and so, as a company with technology that can use biomass, waste or multiple fuels, in our portfolio, we predict that this will be another area where we will see a lot of opportunities.”

S U P P LY C H A I N

http://asia.businesschief.com

95

HARNESSING HYDROPOWER TO FUEL SUSTAINABLE GROWTH IN SARAWAK Written by Laura Mullan Produced by Marianna Lee

97

Sharbini Suhaili, Group CEO

ENERGY

HOW MALAYSIA’S SARAWAK ENERGY BERHAD IS UTILISING THE STATE’S HYDROPOWER RESOURCES TO PROMOTE SUSTAINABLE GROWTH IN THE REGION

T

ransforming our energy system is not just about replacing fossil fuels with renewables, it’s also about promoting energy equality and the sustainable development of communities. This meaningful vision is one that unites Sarawak Energy Berhad, the electric utility company for the state of Sarawak in Malaysia.

“We aspire to achieve sustainable growth and prosperity in Sarawak by meeting the region’s need for reliable, renewable energy,” says Sharbini Suhaili, Group Chief Executive Officer.

“We have a goal that by 2030 the state will achieve developed state status. Therefore, we are using our energy resources to attract foreign investment and promote economic growth.”

Sarawak Corridor of Renewable Energy Blessed with high rainfall and an abundance of rivers, Sarawak is rich in hydropower reserves. By harnessing this, alongside the region’s indigenous coal and gas resources, the company provides competitive energy prices and attracts energy-intensive industries, such as the aluminum sector.

As part of this strategy, Sarawak Energy is working closely with the state government to embark on a huge programme of expansion known as the Sarawak Corridor of Renewable Energy (SCORE).

“We are blessed that we have quite a lot of hydropower resources on the island of Borneo,” explains Sharbini. “This allows

http://asia.businesschief.com

99

S A R A WA K E N E R G Y B E R H A D

100

January 2018

ENERGY

“The pace at which we transition towards renewables depends on technology advancements. It will happen. It’s just a matter of timing” SHARBINI SUHAILI Group Chief Executive Officer http://asia.businesschief.com

101

S A R A WA K E N E R G Y B E R H A D

Dr Chen Shiun, VP for Research and Development

us to provide cost-effective electricity prices so, if you look in Southeast Asia, you will see that our tariffs are among the lowest the region.

As a result, we’ve been successful in attracting energy-intensive industries to the region.�

Sarawak Alternative Rural Electrification Scheme One of the core challenges facing Sarawak Energy is making sure that economic development is inclusive of the remote and dispersed rural communities in the heartlands of the state. Due to the extremely rugged and challenging terrain, some villages in the state cannot connect to the main electricity grid.

102

January 2018

$500 MN Sarawak Energy Berhad annual revenue

1967

The year that Sarawak Energy Berhad was founded

ENERGY

However, this logistical challenge is not stopping Sarawak Energy. The electric utility company is determined to provide electricity to each and every Sarawakian where possible and advancements in alternative renewable technology are making it a reality.

Through the Sarawak Alternative Rural Electrification Scheme (SARES), the company will design, build, and install localised off-grid solar or micro-hydro systems in these villages before handing them over to the community to operate. With over 50 villages selected to be equipped with solar systems this year, this is a challenging feat, but it is one that the company is well-equipped to tackle.

“We see it as our moral obligation to make sure that everybody in the state has equal access to energy, whether it’s for their daily use or for business and development,” says Dr Chen Shiun, Vice President of Research and Development.

“It is a very important project to me because it is a basic right that communities should have access to a reliable electricity and water supply,”

adds Sharbini. “Energy equality is a very important issue to us. In 2009, we covered just under 70% of the state in terms of rural electrification and now we connect about 90% of the region.

“I predict that by 2025 we will provide energy to everyone. It’s a big task – the state of Sarawak is very big, sparsely populated, and there are still close to 2,000 villages that we still need to reach – but over the next five years we are planning to reach every single one.”

Technological ingenuity and expansion Innovation is critical in the energy sector and there is no lack of it at Sarawak Energy. With technological prowess, the company is able to run its rural systems autonomously and use satellite communication to monitor them and plan their maintenance. As well as this, the company is looking into initiatives to maintain and preserve boilers for longer. Sharbini says that innovation is crucial to the company’s success.

“We are in the middle of a digital

http://asia.businesschief.com

103

S A R A WA K E N E R G Y B E R H A D

“We want to achieve sustainable growth and prosperity for Sarawak by meeting the region’s need for reliable, renewable energy” SHARBINI SUHAILI Group Chief Executive Officer

104

January 2018

ENERGY

revolution and things are changing really quickly,” he explains. “This is impacting how we are using technology and so we recognise the need to advance and remain agile. I’d say it’s a challenge, but it’s also an opportunity for us to really make a difference.”

As well as this, the company also has big expansion plans on the horizon. It recently acquired the Bakun hydroelectric project from the federal government and it is also embarking on a stateof-the-art hydroelectric project in Baleh.

“There are always challenges,” notes Sharbini, “but these can also be opportunities. We have rapidly expanded over the last eight years and it has been quite a challenge for us as an organisation, but it’s also made us stronger. Now we are looking at future avenues for growth – for instance, the region of Kalimantan has a huge hydropower potential and so we’re pursuing a number of opportunities there.”

Sustainable, reliable energy Not only is the utility industry undergoing a digital transformation, it is also embracing a transition towards renewable resources. This is a shift that Sarawak Energy is well equipped for, says Sharbini. “It’s very certain that renewable energy is the way to go,” he notes.

“The use of fossil fuels will soon have to be very controlled and I think globally people will have to take a very hard look at their energy consumption.

http://asia.businesschief.com

105

S A R A WA K E N E R G Y B E R H A D

I think fossil fuels will still be the dominant energy resource in the next five years but it will be declining as the use of renewables grows.

The pace at which we transition towards renewables depends on technology advancements. It will happen. It’s just a matter of timing.”

Chen is also optimistic about the future of renewable energy, but he

106

January 2018

doesn’t underestimate the innovation it will require to succeed. “Renewable energy has its own challenges that we need to overcome,” he says. “For instance, in circumstances when there’s intermittence, what are you going to do for electricity? I think the answer to these issues lies in new technologies. The sector will have to create more advanced digital

ENERGY

“We see it as our moral obligation to make sure that everybody in the state has equal access to energy” SHARBINI SUHAILI Group Chief Executive Officer

technologies to make renewable resources more efficient.”

With a well-educated, Englishspeaking population and a promising position next to the South China Sea (a lucrative trade route), the state of Sarawak is well-positioned to grow sustainably into a developed state.

Thanks to the technological prowess and committed dedication of Sarawak

Energy, the country is unlocking its energy potential and preparing for a greener and more sustainable future.

http://asia.businesschief.com

107

78 NOVEMBER 2017

FRANCE  PARIS PORTE DE VERSAILLES  PAV. 4

Heading for a collaborative & digital supply chain

• EXHIBITION • BUSINESS MEETINGS • CONFERENCES www.supplychain-event.com

20-23 MARCH 2018

FRANCE  PARIS NORD VILLEPINTE  HALL 6

International Week of Transport and Logistics

• 40,500 PROFESSIONALS • 800 EXHIBITORS • 100 CONFERENCES • 8 HIGHLIGHTS • THE INNOVATION AWARDS • SMART HUB by SITL www.sitl.eu

20-23 MARCH 2018

FRANCE  PARIS NORD VILLEPINTE  HALL 6

Materials handling exhibition for industry and distribution

• 15,000 PROFESSIONALS • 150 EXHIBITORS • CONFERENCES • THE INTRALOGISTICS EQUIPMENT AWARD • SMART HUB by INTRALOGISTICS

www.intralogistics-europe.com