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TOP 10

Fastest-growing companies in Australia

January 2018

AUSTRALIA EDITION

CITY FOCUS

BRISBANE A THRIVING ECONOMY WHICH TEEMS WITH INNOVATION AND ENTREPRENEURSHIP

AUSTRALIAN CRANE AND MACHINERY The future needs of the construction industry

HITACHI IoT partner of choice


The source of value

Procurement executives across the globe continue to see the potential they can unlock throughout the supply chain. They understand that business today is about engaging, collaborating, adapting instantly to evolving needs, and finding new sources of value. Getting that value, however, can prove a challenge.


FOREWORD HELLO AND WELCOME to the first 2018 Australia edition of Business Chief magazine. This year’s first feature is an interview with Hitachi Australia’s Managing Director Atsushi Konishi, and Director of Operations, Anand Singh, discussing how the business is at the forefront of revolutionising primary industry. In 2016, Hitachi committed to investing AU$1.25bn in its Australian Social Innovation businesses by 2020 – find out more about this and the company’s other plans from page six onwards. Another hive of innovation is Brisbane. See our city focus feature to see how the city is pioneering new solutions and serves as a key gateway into Asia. Similarly, this month’s top 10 looks at the fastest-growing companies, all of which are innovating to stay ahead of the game. Our other exclusive interviews involve Schneider Electric, Currumbin Wildlife Sanctuary and Australian Crane and Machinery. Also included in a packed issue are articles on the rise of industrial IoT devices, unlimited leave annual leave policies and the UN and World Bank’s roadmap for sustainable financial systems.

Enjoy the issue!

www.anz.businesschief.com

www.bizclikmedia.com

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Hitachi – IoT partner of the future

F E AT U R E S

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

08 PEOPLE

THE BREAKTHROUGH YEAR FOR IOT? TECHNOLOGY

16 26

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


34

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?

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CITY FOCUS

BRISBANE A HUB FOR INNOVATION AND THE GATEWAY TO ASIA

TOP 10

TOP 10 FASTEST GROWING COMPANIES IN AUSTRALIA

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60

72

Schneider Electric MINING

Roy Hill Holdings Pty Ltd MINING

82

Currumbin Wildlife Sanctuary Food & Drink

94

Australian Crane and Machinery Construction

106 Prysmian Energy


140

118 Civmec

Digital Realty

Energy

Technology

184

158

SA Health Healthcare

196

Curtin University Education

Tennis Australia Public Sector


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

HITACHI IoT partner of the future


Hitachi Australia’s Managing Director, Atsushi Konishi, and Director of Operations, Anand Singh, explain how the business is at the forefront of revolutionising primary industry Wr it te n by N I K I WA LD EG R AV E


IN 2016, HITACHI committed to investing AU$1.25bn in its Australian Social Innovation businesses by 2020, focusing on the digital transformation of mining, agriculture, railway systems, healthcare and security. “Embracing smart technology including digitisation and IoT in the mining industry is imperative for Australia to maintain its leadership position,” says Mazakazu Aoki, Executive Vice President and Executive Officer of Hitachi Ltd, at its recent Social Innovation Forum in Queensland. At the Hilton Brisbane Hotel– held event, which explored digital transformation in primary industry and the latest technological developments revolutionising these industries, Aoki reiterated Hitachi’s commitment to the region, revealing the company has already invested approximately $875mn of the $1.25bn over the past 18 months, with the bulk of it going into mining and agriculture. Hitachi predicts that by 2030, Australia’s mining industry will be operated almost entirely by autonomous machines. It also believes that by then, most mines will have fully integrated IoT systems to connect all 10

January 2018

mining operations to central analytics hubs where strategic decisions can be made and implemented, often thousands of kilometres away from the actual mining site. Atsushi Konishi, Managing Director of Hitachi Australia, says the business is perfectly poised to bring information technology (IT) and operational technology (OT) together to increase productivity and reduce costs by up to 25%.


L E A D E R S H I P & S T R AT E G Y “There are so many aspects in the entire supply chain where various technologies can be applied, like robotics, automation, and the application of drones,” he says. “Hitachi has expertise in data analytics and due to our presence in the IT area, we are able to integrate this into the Industrial Internet of Things (IIOT).” The IIOT is a network of devices and machines combining industrial assets with intelligent software to

deliver powerful capabilities for smart manufacturing, meaning end-to-end predictive quality, operational visibility and optimal production efficiency. This plays a huge part in the entire innovation space because every time a customer seeks improvement, one of the first things they explore is the data, analysing and understanding what the key parts are. “Hitachi has got the ability to do that,” adds Anand Singh, Director

It’s already invested approximately $875mn of the $1.25bn over the past 18 months, with the bulk of it going into mining and agriculture

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L E A D E R S H I P & S T R AT E G Y of Operations, who has been with the company since 2004 and is responsible in redefining Hitachi Australia’s role as a regional headquarters and its strategic initiatives in this region. “Our experience in the whole operational space of more than 100 years helps us to understand the customer’s needs, especially in the processing area. “And these technologies, along with our ability to bring the IT and OT together, have been integral to Hitachi’s overall presence globally.” One of the key technologies that will drive the autonomous mining revolution is Hitachi’s Autonomous

Atsushi Konishi, Hitachi Australia’s Managing Director

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January 2018

Haulage System (AHS). AHS leverages software and technologies developed for Hitachi’s automotive and railroad solutions – as well as fleet management and dispatch systems to increase productivity – and thus lowers the total cost of ownership. “Because of that, in two years we’re in a position to retrofit the trucks that we are delivering today,” adds Singh. “So, from the point of measurement and analysis, all the way to applying technologies to improve the processes, we can offer the entire suite of products and services.” In the past three years, Hitachi has made several acquisitions, including the purchase of Sullair, Bradken and HE Parts. In agriculture, Hitachi’s Process Intelligence (HPI) is at the forefront of revolutionising farm management and optimising the complete food value chain, from farm to plate. It recently awarded Meat & Livestock Australia (MLA) the first annual Hitachi Transformation Award for its work in using data to help drive innovation in the red meat industry. “MLA’s key objective is to provide new technologies and solutions to its members to help them in the


“Embracing smart technology including digitisation and IoT in the mining industry is imperative for Australia to maintain its leadership position” – Mazakazu Aoki, Executive Vice President and Executive Officer of Hitachi Ltd

processes and the productivity of the farmers,” adds Konishi, “so, we help them in identifying new ways of doing things different and merging different processes. “In agriculture, whether it’s the application of sensors, automation or drones – applying these different forms of technology to automate the processes means the farmer can manage the farm in a much more effective manner. “This reduces cost and improves activity which, in turn, improves

productivity from the farm.” In mining, the pressure to be able to convert what is being mined into an end product has become far more significant over the last six or seven years and, especially with large companies, the cost per tonne conversion is important. “If we look at the costs associated with that,” adds Singh, “it starts from the pit all the way to the port, and there are various technologies that can be applied along the way. “From identification of the resource, 13


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

“Hitachi has expertise in data analytics and due to our presence in the IT area, we are able to integrate this into the Industrial Internet of Things (IIOT)” – Mazakazu Aoki, Executive Vice President and Executive Officer of Hitachi Ltd 14

January 2018


erations p O to excavation, to processing, f o r to h, Direc g n i S d to logistics and then to the port Anan to ship it off. You can break this to the whole processing of the minerals to ensure efficiency in the way it is brought to fruition.” The next 10 years will see automation and digitalisation flourish across several sectors and Hitachi, which employs 3,650 people in the region and is on track to triple its 2015 revenue total in Australia to $3.75bn by 2020, sees itself as playing a significantly important role in each. “We obviously want to be seen as the IoT partner of the future and as the major player of every sector, not just mining and agriculture, but across all of them, including transportation, in a position to sustain themselves healthcare, and public safety. in the long run, that we can be “We like to see ourselves as an sustainable,” he explains. “It is innovations partner in all these areas extremely critical to our existence. because we have the capability So, everything that we recommend, to bring both the technologies and our language and the way we and the associated specialised communicate our brand is centred services to these sectors.” on the concepts of sustainability. Konishi adds that the concept “I think it’s up to technology players of social innovation is based on like us to demonstrate the real sustainability, and Hitachi truly benefits of applying some of these believes in the concepts of its advanced technologies in improving ‘corporate shared value’. the processes so that, at the end, “It’s only when our stakeholders are everybody benefits from this.” 15


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. 18

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 behavior. “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 organizations who are embracing IIoT are beginning to recognize 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.” 19


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

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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 organizations across Europe and the United States, found that as many as 49% of organizations 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 organizations are limiting its use to just one process or function, as opposed to a businesswide approach. According to HCL, 21


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

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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 23


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

things’. The belief is that, because the 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 24

January 2018

intersection of people with critical data and intellectual property,” said Dr. Richard Ford, Chief Scientist at Forcepoint. “By placing cyber-behavior and intent at the center 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 IIOT 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 behavior 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. 25


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 program 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 ninth floor terrace at its New York office 28

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 29


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

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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

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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 program 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

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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 program 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 realize 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.” 33


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 36

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 recognizing the issues we are facing, but is adamant that this can only afford to be the mere 37


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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 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 39


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

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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 program 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 41


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’ 42

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.” 43


BRISB CITY FOCUS

Headline

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

A HUB FOR INNOVATION AND THE GATEWAY TO ASIA

Writ ten by AUTHOR

Writ ten by OLIVIA MINNOCK


BANE


CITY FOCUS

BRISBANE HAS A $146BN ECONOMY

A fast-growing economy Brisbane has been dubbed “Australia’s new world city” and currently has a $146bn economy. According to couriermail.com.au, by 2031 the economy for Greater Brisbane will match that of New Zealand with a value approaching $250bn. Its diverse 46

January 2018


economy has “traditional pillars such as mining services and construction making way for a raft of new growth sectors including education, advanced manufacturing and health services.” This growth will likely come from its biggest sector, health and social care, as the population ages. Economist Gene Tunny told Courier Mail: “What we will see is a continuing expansion of aged and health care, combined with NDIS (National Disability Insurance Scheme) investment, being a huge driver of employment in the future.” Education and innovation In terms of its workforce, Brisbane has shown strong population growth for the past two decades and this is set to continue. According to choosebrisbane.com, the population is projected to grow to 3.12mn by 2031. At present, the Greater Brisbane region holds 2.2mn people and 42.8% of these are aged between 25 and 54, with 22% holding bachelor degrees. It has the fastest employment growth of all Australian capitals and has the

second-highest full-time employment rate in the country, with 65% of those employed working full-time. Playing host to three major Australian universities, Brisbane not only has a highly-educated workforce but is a hub for research. Griffith University, a global top 5% institution, is famed for its research into health and the environment. Queensland University of Technology is a 45,000 student-strong organisation which is ranked 2nd of all Australia’s universities under 50 years old. The University of Queensland is a member of the world’s top 100 institutes and is a leading organisation in Australia for new patents, licence income and start-up companies. It is unsurprising then that Brisbane was the city to develop the world’s first vaccine for cervical cancer, which has now been rolled out by several governments around the world. The city has been ranked in the top 15% worldwide for innovation in the Innovation Cities Global Index, and the greatest number of patents in the country come from Australia. 47


CITY FOCUS

BRISBANE - THE FACTS Brisbane has a total population of 1.18mn in its local government area and employs 836,012 people. The city has an unemployment rate of 5.55% and tourism exports last year totalled $6bn. The top five industries for employment are healthcare and social assistance; professional, scientific and technical services; retail trade; construction; and education and training. The local government area holds a total of 118,809 registered businesses. 48

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“Brisbane not only has a highlyeducated workforce but is a hub for research” – Economist Gene Tunny

Little Tokyo Two… collaborative workspace As well as other areas of innovation, Brisbane is fast becoming known as a tech hub. A prime example of this is Little Tokyo Two, a company providing workspace and innovation hubs for entrepreneurs, which has chosen to use Brisbane as its base for

a variety of reasons. Its headquarters is at Spring Hill, but the business also has locations at Petrie Terrace in the city as well as its newest offering, The Capital building, in Brisbane’s CBD. Workspaces are also offered in other Queensland locations: Springfield and Gold Coast. Little Tokyo Two dubs itself “one 49


CITY FOCUS

“The city has been ranked in the top 15% worldwide for innovation in the Innovation Cities Global Index” – Economist Gene Tunny

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of the largest and most dynamic communities of entrepreneurs, innovators and creators in South East Queensland”. Championing collaboration, trust, openness and support, the organisation boasts a range of members between the ages of 15 and 70, with most around 30 to 35. It provides not only 24-hour workspace for collaboration but also mentoring programmes for start-ups and entrepreneurs, with 55% of members being less than three years in business. The company boasts “a thriving event program” with “plenty of chances to rub shoulders with likeminded folks” and says the strategic partnerships it offers will “create untapped opportunities that you may never have thought possible”. Brisbane as a gateway… Brisbane is the closest Australian capital to Asia, and as such is seen as a gateway between whole continents.


The port of Brisbane is one of the fastest-growing container ports in Australia, and is a hub for over 35 shipping lines. Located just 24km from the CBS, choosebrisbane.com states the port is five sailing days closer to Asia than Sydney of Melbourne. In addition, Brisbane plays host to a top world airport in which 34 airlines operate with links to Singapore, Hong Kong, LA and Dubai. Currently several billions are being spent on improving the airport, which includes the construction of a new parallel runway. Other infrastructure developments include the Queen’s Wharf Development in the CBD, and a $5bn cross river rail project to open up corridors and transit centres such as Woolloongaba. The city says it is “committed to strengthening trade and commerce across the globe and rapidly becoming a powerhouse in the Asia Pacific region�.

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TOP 10

Top 10 fastest growing companies in Australia Writ ten by ANDREW WOODS


Australia’s 10 fastest growing companies according to the Australian Financial Review, which takes into account their revenue and three-year year-on-year average growth


TOP 10

10 CONNECTED 09 JV ANALYTICS RECRUITMENT (three-year year-on-year (YoY) growth 102.5%)

(3-year YoY growth 103.8%)

www.connectedanalytics.com.au

www.jvrecruitment.com.au

Connected Analytics is a privately owned and registered Australian company that posted a 2016 revenue of $4.01mn. A professional services business dedicated to helping organisations use information to gain insight and make better decisions, Connected Analytics uses a business model based on ‘an absolute commitment to delivery excellence and to an employment proposition that provides our clients with access to some of the best talent in our industry’.

JV recruitment was founded in 2009 and reported its 2016 revenue as $14mn. The company provides a people-orientated approach to recruitment in the areas of construction, logistics, manufacturing and business support. It recruits across permanent, contract and labour hire staffing solutions and boasts a 96% placement success rate, with 60-80 labour assignments per day. It is currently directed by the company founder, Stuart Campbell, and is headquartered in Melbourne.

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08 RELIANCE REAL ESTATE

07 HUNTER MASON

(three-year YoY growth 108.8%)

(three-year YoY growth 118.6%) www.huntermason.com.au

Reliance Real Estate has been established as an independently owned and operated company in the Wyndham area with offices based in Werribee, Point Cook, Melton, and Tarneit office. It’s been around since 2011 when it had just four employees. Reliance has grown rapidly since and now has over 60 staff and a 2016 revenue of $4.67mn.

Hunter Mason is a five-yearold construction management consultancy company headquartered in Sydney. The company delivers fitout and refurbishment services to the real estate industry and reported a 2016 revenue of $29.93mn. Owner Matthew Callender manages a team of over 20 and the company has notable partners including Accenture, Uber and Vodafone. Its most recent clients have also included booking. com, Jacobs and Qantas.

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TOP 10

06 MYDEAL.COM (three-year YoY growth 124%) www.mydeal.com.au

MyDeal.com.au is an Australian online retail marketplace, connecting millions of consumers with thousands of Australian retailers since 2011 with over 2mn parcels shipped nationwide. The homeware and fashion site currently sells over 100,000 items and posted $29.55mn in revenue for 2016.

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05 ALEGRE (three-year YoY growth 127.7%) www.alegre.net.au

Electronics trade-in specialists Alegre have been capitalising on the used smartphone and tablet market since 2012 and posted a 2016 revenue of $27.9mn. The Alegre Trade In programme delivers an enterprising buyback solution described as ‘market leading’.


04 EVOLUTION HEALTH (three-year YoY growth 129.1%) www.evolutionhealth.com.au

Evolution Health is a family owned Australian company established in 2006 which posted a 2016 revenue of $71.85mn. Evolution is a brand owner, manufacturer and supplier of a range of nutritional health supplements and products. Building on more than 20 years of manufacturing expertise in therapeutic products through sister company Ultra Mix, Evolution Health is a vibrant new player in the health and complementary medicine industry for the Australian and global marketplace.

03 OCTOPUS DEPLOY (three-year YoY growth 133.3%) www.octopus.com

Octopus Deploy is the most popular deployment automation server in the world with over 20,000 companies using its Octopus to automate NET, Java and other application deployments to their servers. It has achieved 12mn deployments to date and over 220,000 machines are running its service, Tentacle. 2016 saw Octopus post a revenue of $8.61mn.

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TOP 10

02 PROSPA (three-year YoY growth unreported) www.prospa.com

Australia’s number one lender to small businesses for loans up to $250,000, Prospa has provided funds totalling $500mn. Prospa offers business loans of between $5,000 and $250,000 with

no security required to access up to $100,000. Application takes just 10 minutes and clients can get same day approval. Funding is possible within 24 hours. Using a smart proprietary technology platform, Prospa focuses on the health of a business to determine its credit-worthiness. Its 2016 revenue was $56.36mn.

USING A SMART PROPRIETARY TECHNOLOGY PLATFORM, PROSPA FOCUSES ON THE HEALTH OF A BUSINESS TO DETERMINE ITS CREDIT-WORTHINESS

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01 TRIPADEAL (three-year YoY growth unreported) www.tripadeal.com.au

TripADeal is Australia’s most popular online travel company which makes ‘travel dreams come true by offering bucket list adventures at unbelievable prices’. Voted Best Online Travel Agency 2017 by the National Travel Industry, its growing team of travel experts are all based in Byron Bay on the east coast. TripaADeal posted a 2016 revenue of $89.88mn

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HOW SCHNEIDER ELECTRIC’S DIGITAL TECHNOLOGY

IS POWERING THE MINES OF THE FUTURE Rob Moffitt, Schneider Electric’s President – Mining, Minerals & Metals Segment – reveals how the business is leading the digital transformation of energy management and automation Written by Niki Waldegrave Produced by Bryan Giles


S

tudies indicate that the world needs to cut CO2 emissions by 50% by 2050 to avoid drastic consequences from climate change. However, due to population growth and increased urbanisation, at the same time, the world will require twice the amount of energy as today. To meet that challenge, Schneider Electric is developing intelligent energy management solutions to help businesses and consumers monitor and control energy usage efficiently. The global energy management, automation and industrial software specialist has 144,000 employees in

more than 100 countries and creates products and solutions to ensure ‘Life is On’ by helping its customers manage their energy and processes in ways that are safe, connected, reliable, efficient and sustainable. Its integrated solutions combine energy management, automation and software through EcoStruxure™, its Internet of Things (IoT) enabled, open and interoperable architecture. EcoStruxure™ leverages the latest advancements in digital technologies, such as cyber security, analytics, cloud, and mobility to deliver real-time control and operational efficiency, and


Alliance Partner Sydney 2017

Schneider Electric’s Mining, Minerals & Metals Segment President, Rob Moffitt, reveals how the company is leveraging solutions from its primary domains of expertise – IT, buildings, industry and infrastructure, and utilities – to help companies in the mining sector achieve new levels of efficiency and productivity. “We see enormous potential in terms of plans for the year ahead and growth,” he says. “From a product and solution perspective, we are a leader in industrial software, power management,

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which includes medium voltage, low voltage and secure power, and in industrial automation and control. “In 2018, we see a return to favourable conditions, in which we expect to see a cyclical upturn and continuing recovery in mature economies, plus accelerated momentum in developing economies that will allow for growth in the segment. “Our focus is around two main areas – customers and technology. On the customer side, we want to expand our presence in certain


geographies and increase our partnerships with strategic customers. For technology, our focus will be to support and develop solutions based on digitalisation.” Enter EcoStruxure™ Schneider’s competitive advantage is its open EcoStruxure™ architecture, underpinned by an enviable combination of people and technology, and the segment team within the organisation dedicated to partnering with strategic customers to harness its potential. Moffitt explains how EcoStruxure™ is redefining automation and power connectivity, and adds an unprecedented layer of software applications and services to help companies improve shareholder value by increasing productivity, reducing costs and improving safety. And by bridging IT and OT, EcoStruxure™ lets customers maximise the value of data, which translates into actionable intelligence for better business decisions. “EcoStruxure™ is an open, interoperable, digital, and IoT-enabled

Rob Moffitt President – Mining, Minerals & Metals Segment

Rob Moffitt, who joined Schneider Electric in 2016 as President of the Global Mining, Minerals & Metals segment, has had a career spanning 32 years in the global mining industry. He started his career in deep level gold mining before working with various multi-national organisations supplying a range of innovative products, technologies, services and solutions into the industry. Moffitt has formal qualifications in Metalliferous Mining and a MBA from Henley Business College in the UK. He is a Fellow at the Institute of Quarrying, Australia and was previously Chairman of the Institute of Quarrying South Africa, and has served on the boards of several companies.


SCHNEIDER ELECTRIC

Schneider Electric Global Family Leave

“We see enormous potential in terms of plans for the year ahead and growth” –Rob Moffitt, President – Mining, Minerals & Metals Segment system architecture that combines our broad range of solutions across connected products and edge control, and leverages them through our industry leading suite of industrial software, apps and analytics,” Moffitt says. “Few other companies in the world have such a complete portfolio of integrated products, and our main differentiation is to bring an open

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and integrated architecture from sensors to business applications that addresses the multitude of challenges our customers face each day. We go beyond applications focused solely on just process or asset performance.” Master of mining Another competitive advantage is Schneider’s dedicated segment approach, having built an entire


ENERGY

organisation dedicated to mining, and investing significantly over the years to increase its competence in the industry from an application standpoint, helping it to solve its customers’ challenges. In fact, to that end it has developed specific expertise around process control, mineral processing, energy optimisation, and supply chain efficiency. Mining is facing significant challenges but the fundamentals are sound, and Moffitt says Schneider expects increased demand for mined raw materials will be driven by population growth as well as rapid and increasing urbanisation. “The resources industry is constantly challenged by market volatility, grade decline, regulations,

social license, skills gaps and workforce demographics,” he says. “This puts a premium on operational and business efficiency – something we’re well-positioned to help our customers with. “Of all the trends impacting the industry, none will be as critical as digitalisation. It will impact every aspect of the industry operation and provide the greatest potential for improving business and operational efficiency.” He points out one of the main challenges has always been to make real-time decisions based on information that is spread across various databases and applications. With that in mind, the company, which devotes 5% of sales to

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SCHNEIDER ELECTRIC

‘SCHNEIDER WAS RANKED AS ONE OF THE GLOBAL 100 MOST SUSTAINABLE CORPORATIONS IN THE WORLD FOR 2016, COMING 12TH OVERALL AND FIRST IN ITS GLOBAL INDUSTRY CLASSIFICATION STANDARD INDUSTRY’ 66

January 2018


ENERGY

research and development, believes the technology that has provided the most value to its customers has been around the integration of mining operations from ‘resource to market’ or as it is sometimes expressed, from ‘pit to port’. “It’s one of the industry’s most challenging problems,” explains Moffitt, “and AMPLA, our integrated mining operations software, has become somewhat of the de facto standard for this type of integrated solution. “It’s a modular software suite with specific mining functionality that supports mine operations from extraction and processing, to blending and storage, all the way through to shipping logistics.” The software enables value chain visibility and optimisation by collecting data automatically from multiple plant and business systems or through manual data entry, and establishing a single trusted source of information which can be collaboratively used to drive efficiency, reduce cost and make better business decisions. “A case in point would be a recent

Jean-Pascal Tricoire CEO of Schneider Electric

implementation of Ampla across five mine sites at a major metal mining company. The system was used to monitor and capture real-time asset performance and condition data and to provide root-cause analysis when assets were being underutilised. Globally across all five mines they improved capacity by over 10%.”

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SCHNEIDER ELECTRIC

“We go beyond applications focused solely on just process or asset performance” –Rob Moffitt, President – Mining, Minerals & Metals Segment “Our resource to market integrated solution consolidates and manages data from multiple mine, plant and business systems,” he adds. “This enables customers to identify production issues, manage inventory and quality, track and management production and asset performance, understand costs, and analyse business KPIs. “As another example, one of the biggest iron ore miners in

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Australia uses it to optimise their port logistics by predicting how each entity in the supply chain will operate – from mine to plant to rail and port – and has improved supply chain efficiency by 20%.” Futureproof Remaining ahead of the curve is tough when it comes to market changes and advances in technology, especially in mining where change is constant, but


ENERGY

Access to Energy: Our Ambition for Tomorrow

Moffitt cites open platforms, the IoT and digitalisation as good examples. “We also see significant turnover at the engineering and technical levels in the industry,” he explains, “meaning we sometimes need to fill that void with our own project engineering or remote asset monitoring services, for example. It also means we need to partner with our customers over the medium to long term and not simply just sell them things. “Now that the outlook has improved and mining operations are starting to make CAPEX investments again, they also need a workforce that can ramp up and become productive quickly, and much of our software and workforce enablement

solutions help them do that.” Training solutions made possible by virtual reality or maintenance troubleshooting tools that utilise augmented reality are examples of the industry looking for new technologies to transform the way it operates in the future. “To give another example, one of our customers in Canada has deployed our training and simulation solution at a groundwater treatment plant that had to meet critical environmental requirements, and was used to train new operators on how to prevent above-limit groundwater from being dumped into their outflow.” Moffitt says the only way to achieve this ‘future state’ is to develop them

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SCHNEIDER ELECTRIC

Schneider Electric Company Story: Our technology is everywhere

Unearth hidden value without spending capital Interlate is transforming the mining sector, our results speak for themselves. See a 10-15% increase in economic benefit and improve the efficiency and effectiveness of your mine.

Transform your data. Unlock your potential

Level 1, 143 Coronation Dr Milton, QLD 4064

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info@interlate.com Tel: +61 7 3220 3684

www.interlate.com


ENERGY

jointly with Schneider’s strategic customers and partners and work closely to understand their challenges and find new ways to solve them. There are going to be 50bn connected devices in 2020, and Schneider wants to help its customers succeed in their digital transformation and reap the rewards it can deliver in terms of energy, process, and business efficiency. “The rewards are significant for those willing to try,” he adds. “It’s been estimated that in the next five years, mining industry leaders will achieve their most significant improvements by embracing digital technologies like the IoT and advanced analytics that

can harness the power of big data.” Some reports indicate that digitisation could bring more than AU$470bn by 2025 in additional value to the mining, minerals and metals industries by means of productivity gains, cost reductions, and fuel and energy savings – but only if they are able to overcome some of the challenges. “One of the challenges is in making technologies available in ways that are easy to implement and leverage,” Moffitt adds, “and that brings us back to EcoStruxure™ once again, because it provides that common open architecture on which everything can be connected.


MAINTAINING AGILITY IN MINING Written by Fran Roberts Produced by Josef Smith

With integrated mine, rail and port facilities, which have the capacity to deliver 55Mtpa, Roy Hill is one of the world’s major resource based operations, which will deliver enormous benefits to the broader community for years to come. Barry Fitzgerald, Chief Executive Officer, explains more


ROY HILL HOLDINGS

A Day in the Life of a Truckie

“R

oy Hill is a US$10bn mega iron ore mining and infrastructure operation and Australia’s single largest iron ore mine capable of producing 55mn tonnes of ore per year. Headquartered in Western Australia, we are the only independent iron ore operation with significant local ownership,” advises Barry Fitzgerald, Chief Executive

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Officer of Roy Hill Holdings. The industry has suffered a difficult time of late, and one set to continue according to HSBC, which predicts that prices will likely correct further in the current quarter, seeing the benchmark price for 62% fines fall below US$60 a tonne over the first half of next year. As the single biggest player within


MINING

“Our unique and best-inclass integrated demand to supply chain operating, reporting and monitoring system ensures a holistic view across the entire organisation from mine to port” – Barry Fitzgerald, Chief Executive Officer Australia’s iron sector, Roy Hill has understandably taken measures to protect against the negative effects of any market volatility. “When we set up our business four years ago, market conditions were very different. At Roy Hill, we regularly review our business strategy and work within the parameters of the changed market environment. We act,

refocus and maintain our agility so we can adapt and respond to market changes,” Fitzgerald comments. “Our unique and best-in-class integrated demand to supply chain operating, reporting and monitoring systems ensures a holistic view across the entire organisation from mine to port. We maintain constant contact with our customers on

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The perfect partner; Knowledge, responsiveness, innovation & complete solutions

Schenck Process Australia Pty Ltd Ground Floor, 65 Epping Road, North Ryde NSW 2113, Australia T+ 61(0)2 98 86 6800 Australia Wide: 1300 724 362 sales@schenckprocess.com.au www.schenckprocess.com.au www

It is the many years of experience supporting the mining industry, especially in the Pilbara region, that positions Schenck Process to be supplier of choice; proudly delivering vibrating equipment, including integrated gates, hoppers and feeders to the Roy Hill Mine and Port. The complete performance solution included our Screenex panels to work in harmony on every Schenck Process vibrating screen. A highpoint was the Roy Hill Train Load Out. Schenck Process adopted an innovative hybrid technology for this system. The silo and structure were manufactured and delivered to site in large modules to minimise site resources and installation time. Schenck Process is extremely proud to be part of the Roy Hill project and safeguarding the future success of this operation through our continued service and support.


MINING

Roy Hill is a US$10bn mega iron ore mining and infrastructure operation and Australia’s single largest iron ore mine capable of producing 55mn tonnes of ore per year

matters of product quality. “As a margin driven business, we focus on innovation and business improvement methodology to foster efficiency, effectiveness and engagement regardless of price. This discipline and drive to recruit people who understand our values of Lead, Care, Think, and Perform positions us well to weather an uncertain market.”

Embracing change Western Australia accounts for about 98% of Australia’s Economic Demonstrated Resources (EDR) of iron ore, which is around 28bn tonnes. As such, the state government plays an important role in the operations at Roy Hill. “In addition to continuing to drive our costs lower, it is imperative that both the state and commonwealth

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ROY HILL HOLDINGS

Roy Hill Launches Second Wave of Pink Trucks in Support of Breast Cancer Research and Awareness

Downer Proud Partner to Roy Hill Downer Mining has been supporting the Roy Hill Project since the commencement of mining on site and is proud to be continuing that successful relationship into the future. With a broad range of services from mining consultancy through to specialised blasting and tyre management, Downer provides a full and comprehensive service offering in-house. Focused on delivery of high performance and cost efficiency, Downer is able to deliver consistent results in close collaboration with our customers.

For more information go to downergroup.com

Address: Level 6, 130 Stirling Street, Perth WA 6000 Phone: 08 6212 9500


MINING

governments continue to work with also limited by the capacity of its the industry to reduce compliance leadership to thrive in a world that is costs and the regulatory burden that increasingly volatile and complex. is imposed on the sector,” Fitzgerald It is imperative that organisations continues. “Collaboration with prioritise vertical leadership other companies and engaging with development over horizontal skills government to ensure that policy development,” observes Fitzgerald. shifts occur to support future growth, expansion and investment is key.” The digital economy The compliance costs and Australia has the world’s largest regulatory burden – Western estimated reserves of iron ore with Australia has enacted 54bn tonnes, 28% of health and safety regimes the world’s estimated that apply specifically 190bn tonnes. As such, to mining workplaces, the country’s majors can which impose strict rules benefit from effectively aimed at establishing a supporting METS high level of safety and (mining equipment, carry significant penalties technology and Number of for non-compliance – services). “Increasingly, Employees at often impact the viability Roy Hill Holdings METS are seeking to of mining projects. adapt and position “The willingness to themselves as relevant embrace change, consider innovation in the digital economy. This is in design and identify modern creating opportunities for them technologies must be improved. to play a more substantive role This approach to improvement and within the value, or supply chains, innovation should be integrated into of majors,” states Fitzgerald. organisational culture. The ability “Investments by METS into research for organisations to transform is and development and data analytics

1,700

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ROY HILL HOLDINGS

has the potential to unlock value in the supply chain.” Indeed, supply chain development is seen by many to be key to the future of the mining industry. “Our integrated operating model has redefined how Roy Hill works day to day. Our unique approach breaks down traditional barriers by realigning everything we do according to five interdependent and interconnected systems (supply, demand, people, improvement governance), allowing us to take a holistic view of our operations,” Fitzgerald elaborates. “Supply places our maintenance teams as core business and optimises the flow of parts, contractors and Building the Roy Hill Project Time Lapse

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equipment to maximise availability and reliability. We recognise that the digital economy is offering greater opportunity to change the world of work and this has led to improvements in supply chain capability.” Driving innovation Not content to follow the crowd, Roy Hill has pioneered the use of new practices within its operations. “In a shift from standard industry practice, we have decided to ‘in-source’ our supply system – centralising our maintenance planning and engineering services then housing all supply system functions together to increase collaboration. This is a critical step in


MINING

improving the throughput relationships between our suppliers and our customers,” reveals Fitzgerald. “At Roy Hill, we have been futureproofing from the start with significant investments in technology and attracting and developing our people. With technology as a foundation of our business, we have been driving key innovations by collaborating with suppliers to stretch software and services beyond the limit of current thinking, thus providing bestpractice across the business.”

Fe iron ore of which 1.2bt is +55% Fe, enough to sustain a mine life of more than 17 years. With this in mind, Roy Hill is already looking to the future. “We are focused on reaching sustainable 55Mtpa production, and continuing to get the best results from our people and our assets every single day,” enthuses Fitzgerald. “Over the next 12 months, we will bring on another 300 employees, taking our total to around 2,000 employees.”

Sustainable production Roy Hill has a defined mineralisation of more than 2.2bt of +50%

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G O L D

C O A S T

A U S T R A L I A

A beacon for tourism on

AUSTRALIA’S GOLD COAST General Manager Michael Kelly describes, among other improvement projects, a new attraction ahead of April’s Commonwealth Games, with the site looking to take advantage of a Gold Coast tourism influx Written by Niki Waldegrave Produced by Justin Nelson


C U R R U M B I N W I L D L I F E S A N C T U A RY

H

undreds of thousands of people will descend on the Gold Coast for the Commonwealth Games in April, and for those wanting to get up close and personal with the native wildlife, a trip to the National Trust Currumbin Wildlife Sanctuary (NTCWS) is a must. Not only does the world-leading 27-hectare sanctuary boast walkthrough enclosures with hundreds of different animals, a wildlife hospital and various conservation projects, it launched its biggest attraction yet, the Lost Valley precinct, on Boxing Day. Australia was once part of the ancient continent Gondwana, and the multi-million-dollar precinct showcases many of its native animals, including red pandas, cotton-top tamarins and goodfellow’s tree kangaroos, right through to boa constrictors, iguanas, chameleons and tortoises, and the precinct’s major feature of the large walk through aviary – which at its lowest point is still about 30m tall. “The new rainforest aviary is one of the largest in the Southern

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Hemisphere,” says the sanctuary’s General Manager Michael Kelly. “Waterfalls and pathways meander all the way through the rainforest aviary, and we’re got about 25 different species of free flying birds, which will continue to grow. “We’ve also got free range ringtail lemurs, who are really friendly and inquisitive, and love interacting with humans.” The new infrastructure, rumoured to cost around $2.5mn, is the largest and most expensive project that the Currumbin Sanctuary has ever carried out, and means the not-forprofit will easily cope with increased visitation over the coming years. Gold Coast tourism is going from strength to strength and Kelly explains how the National Trust of Australia (Queensland) – which has its head office at the sanctuary – is making sure it’s putting its “best foot forward” for the Commonwealth Games 4-15 April. “We’ve got three of the events happening right outside our door,” he explains, “and we want to make sure that visitors, athletes and officials get


“THE NEW RAINFOREST AVIARY IS ONE OF THE LARGEST IN THE SOUTHERN HEMISPHERE” – Michael Kelly, General Manager, NTCWS

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CURRUMBIN BIRD SANCTUARY WAS FOUNDED IN 1947 BY BEEKEEPER AND FLOWER GROWER ALEX GRIFFITHS 86

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to experience the best part of the Gold Coast. “We’re also in our 70th year so it was a bit of a, ‘let’s go out with a bang on our 70th year, and really do something spectacular’, and we also wanted to improve our site to give back to the community, which has been very supportive.” He explains how the sanctuary has listened to what the visitors want, and started a process of continual improvement, dramatically improving everything, from the food and beverage areas to the animal areas. “With a lot of it, we’ve moved away from the traditional zoo model of looking at things behind cages to being very much a sanctuary where you can walk through an enclosure,” Kelly says. Deep roots Currumbin Wildlife Sanctuary was founded by Alex Griffiths, a beekeeper and flower grower who arrived in Australia from New Zealand in 1942 following the Second World War. He planted more than 12,000 prize-winning gladioli bulbs on his Currumbin property which attracted hundreds of birds to his property daily. Because they were damaging the plants, he distracted them with honey and water, resulting in thousands of birds flocking to property, which, in turn, brought crowds of locals and tourists. He became known as the pioneer of the coastal strip’s tourist industry and founded

Jane Jamieson - GM of Human Resources & Volunteer Programs

Jayme Cuttriss - GM of Marketing & Sales

Jonathan Fisher - CEO Natioanl Trust of Australia (Queensland)

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THE SITE BECAME A HERITAGE-LISTED ZOOLOGICAL GARDEN IN 2009

the Currumbin Bird Sanctuary in 1947, adding animals and various attractions, including a steam railway. Griffiths gave the site to the National Trust of Queensland in 1976, who turned it into a not-for-profit business, with all money raised going back into the venue. It became a heritage-listed zoological garden in 2009 and is now the National Trust network’s largest property in Australia, managing

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12 other properties around the state from Currumbin. “We’re working on continual improvement and have put in place a significant master plan in terms of all we want to achieve over the coming years,” adds Kelly. “And that is to protect this facility into the future, and all the good work that they do here.”


Koala conservation Part of the masterplan is continuing to expand animal collections and focusing on new and exciting ways to display them, and to further the conservation efforts within that, including The Currumbin Wildlife Hospital Foundation. The foundation supports and funds the vital work of the sanctuary’s hospital, which treats more than 10,500 wild animals a year, including many koalas. It also runs different conversation projects, ranging from protecting the critically endangered eastern bristlebird, to its world-leading echidna breeding programme, which is a collaboration with the University of Queensland. “We’re heavily involved in the protection of the koala as well,” Kelly explains. “It’s such a shame koalas are currently a vulnerable species. The Gold Coast is prime koala habitat, and we want to make sure we protect that into the future. Koalas are admitted for a multitude of reasons, but mainly through deforestation, attacks from domestic animals and foxes, car injuries and disease – the main one being chlamydia, which the sanctuary is assisting in developing vaccines against. The hospital treats them for free and once they’re healed, releases them back into the wild where they were originally located, so they can re-join their families.

Kameron Hill - Commercial Revenue Manager

Ken Spiller - Technical Services Manager

Dr Michael Pyne - Senior Vet Currumbin Wildlife Hospital

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C U R R U M B I N W I L D L I F E S A N C T U A RY

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“We’re averaging an extra 1,000 animals every year coming to the hospital – many are koalas, so we’re looking to expand in that space,” Kelly explains. “We certainly want to improve our conservation efforts and strengthen the programmes that we have.” When asked which is his favourite animal or species at the zoo, Kelly – who had a commercial background before joining the National Trust

four years ago – laughs, and says: “I can’t answer that – it’s like asking me to choose a favourite child!” Power of the people The sanctuary has around 260 paid staff, 100 trainees and a whopping 420 volunteers across all areas, from the animal hospital to horticulture, tending to the 27 hectares of gardens and rainforest. “The wonderful

Paul Guerin - GM of Education, Creative & Community Engagement

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reviews you see on TripAdvisor and so forth are a very much testament to our volunteer team,” adds Kelly. “We’ve got a culture programme called the Wings of Success, because it’s all about eagles; we want to be eagles flying above everyone else. “And the four values which are part of that programme – being friendly, being welcoming, being safe, and having fun – are absolutely critical for every person we work with in our organisation to have, whether they’re paid or not. We live and breathe those values, and are delighted to see that coming through in our visitor feedback.” Already an eco-certified facility,

G O L D

C O A S T

Kelly says the aims for the next 18 months are improving even more on its sustainability footprint, and improving the commercial business plans and diversification of revenue, so it’s also financially sustainable into the future. “It’s about being sustainable and showcasing Australia’s native wildlife, showcasing our rainforests, and the botanical species’,” he says. “We want to expand on that. We’re an old park, so we’re continually changing and reinvesting so that people can come back to us multiple times a year and experience something new. “It’s the continual reinventing of what we do that keeps us fresh and relevant.”

A U S T R A L I A

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SUPPORTING THE PRESENT AND FUTURE NEEDS OF THE

CONSTRUCTION INDUSTRY Written by John O’Hanlon Produced by Jeff Debicki


A U S T R A L I A N C R A N E & M A C H I N E RY

Australian Cranes & Machinery is in a process of exponential growth and investment, using its long-established expertise to meet the changing demands of a strong pipeline of projects

A

ustralian Cranes & Machinery (ACM) is a privately-owned business: its current Managing Director Ben Potter is the third generation of his family to lead the business, which was established in Melbourne to sell mainly P&H and Kobelco cranes to the Australian market. ACM has held the agency for Kobelco for at least 12 years, distributing crawler cranes and other products in Australasia, New Zealand and the Pacific islands including Papua New Guinea. Since 2007, ACM has been undergoing a transformation, establishing a strong market position in elevated work platforms (EWPs), otherwise known as aerial platforms or, colloquially, cherry pickers. In 2016, ACM purchased a plant hire company serving its current footprint. This is a side of the business that it is expanding: not everyone wants or needs to own its own cranes or EWPs,

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and other customers may have only short-term need for the equipment. This strategic acquisition gives ACM a steady revenue stream which is less affected by the vagaries of the construction industry. It also provides a useful vehicle for it to field test the new equipment of its own design and manufacture coming out of its Melbourne assembly facility, explains Michael Kobilke, ACM’s Director of Production and Engineering. After two decades working for leading German crane manufacturer Liebherr, he was persuaded to join ACM to lead the company’s expansion in product development and production. Since opening an office in Perth, Western Australia, ACM has a branch in every state and a support team in New Zealand too, giving it the ability to distribute, service and maintain its platforms. The EWP market is rather different from the crane market, says


CONSTRUCTION

“OVER THE NEXT FIVE YEARS, AUSTRALIA WILL SPEND ABOUT AU$50BN ON RAIL EXPANSION AND INFRASTRUCTURE INCLUDING ELECTRIFICATION” – Michael Kobilke, Director: Production and Development

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ACM Holden

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Kobilke. “Many crane companies Melbourne Metro, Yarra Trams and work with man baskets lifting people Queensland Rail. “We think this is an up to work at height but our platforms important sector for our products,” are much more highly customised.” says Kobilke. “Over the next five years, A primary market is rail maintenance, Australia will spend about AU$50bn for which ACM produces a range on rail expansion and infrastructure of specially designed, truckincluding electrification.” While mounted vehicles for measuring and long haul trains will still be dieselrigging overhead wires. As powered, some mid-range electrification grows, there services, for example has been an expanding a proposed system need for EWPs like linking Melbourne, the 16-ton 105SP Sydney Brisbane, which has a working will be electric. height of up to 10m Apart from rail above the rails and infrastructure, other Year ACM was a generous 2x2.5m fast-growing sectors founded working platform. will provide a demand These platforms are for specialised EWPs. He fully insulated, allowing trained quotes telecoms as an example. engineers to work on live overhead “As the mobile service providers lines where needed. The truck drives move from 3G to 4G and 5G, all the to a level crossing point, aligns with towers have to be adapted to suit the rails and then lifts itself up onto its these systems. We have platforms built-in bogies, on which it can drive with a jib crane so you can hoist the itself along the track at up to 35kmph. 150kg antenna up, and the engineer If it needs to stop on a cambered can work from a basket to install it.” curve, it will level itself. Among the The standard procedure has been to customers to which these units have use a jib crane to hoist the antenna been supplied are Sydney Trains, the and then have a man basket on the

1973

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A U S T R A L I A N C R A N E & M A C H I N E RY

lappgroup.com

Lapp Group is a leading supplier of integrated solutions and branded products in the field of cable and connection technology. The Group’s product portfolio includes standard and highly flexible cables, industrial connectors and cable entry systems, customized system solutions, automation technology and robotics solutions for the intelligent factory of the future, as well as technical accessories. In partnership with Treotham Automation in Australia, Lapp Group’s core markets are in the industrial machinery, plant engineering, food & beverage, renewable energy and rail sectors.

t: 1300 65 75 64 e: info@treotham.com.au w: www.treotham.com.au


CONSTRUCTION

main hook to do the installation. This is both cumbersome and costly. ACM platforms are completely mobile and the engineer has the controls at his fingertips so he or she can position everything direct from the basket. The energy sector is providing limitless opportunities as Australia addresses its lack of power lines. Rigging the lines takes an industrial truck: once the lines are in use, the companies need insulated EWPs to maintain them. That’s for baseload energy; however, in all global markets the emphasis is shifting to renewables, and wind energy forms a huge part of that. It’s a priority for ACM to meet the future needs of this industry – at the moment the largest unit it makes is 40m but that will soon change, promises Kobilke. “We are currently developing a 52m industrial unit mounted on a 6x6 truck. We are also developing a 46m electric or insulated unit, with an insulated jib to give us the safety we require. Our next step, in 2018, will be a 73m unit which we plan to operate on an all-terrain crane chassis.” The 52m and 73m versions, he adds, will be

modifiable as rescue machines for fire departments, with water pumped up to the basket. It’s a policy of ACM to plan adaptability into its new designs. By 2020, Kobilke would like to have designed a 140m unit for the wind energy market. “These days wind turbines have hub heights up to 135-145m, so when the cranes are hoisting up the turbine someone has to unhook the chain. Then there is maintenance on the blades, the hubs and the gearboxes: you need to get people up there to do these jobs,” he says. The biggest units currently on the market are 116m, but most of these can’t be transported legally on Australian roads. Recognising this gap, ACM wants to push into that market. It also plans a strategic alliance with a manufacturer of heavy cranes to use its all-terrain chassis: “These have the stability and structure to reach the heights we require as well as the transport loading and site loading needed,” Kobilke adds. All this expansion is planned on machines designed and built by ACM. Since 2007, it has had a manufacturing plant at Melbourne from which it has

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hitherto issued some 15 new machines a year. But a new 10,000sqm facility with a production workshop and a test shed is under construction and should be ready by March 2018, employing around 60 people on platform assembly. Even this plant will be too small by then. In August 2016, ACM opened a plant in Korea to do the steelwork and pre-assembly of EWP superstructures, which are shipped to Australia for customisation and mounting on the trucks. This facility was expanded in October this year, tripling its footprint, so it’s not

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surprising that more space in Australia is urgently needed. The new plant will have a very large 1,600-tonne capacity press brake, line boring machines, laser cutters and automated welding for the higher-run items. It will also have a 20m high shed so that testing can take place under cover. This will be the most comprehensive EWP travel tower and mobile crane manufacturing and repair facility in Victoria, if not Australia. But the next phase is much more ambitious – in October the last car rolled off the line


“WE ARE CURRENTLY DEVELOPING A 52M INDUSTRIAL UNIT MOUNTED ON A 6X6 TRUCK THAT ALSO CAN BE USED AS A FIRE RESCUE UNIT” – Michael Kobilke, Director: Production and Development

at Holden’s Adelaide plant, marking the end of car production in Australia. The huge site is destined to become a business park, and ACM would like to move its HQ and manufacturing there, employing some 200 people and giving priority to former Holden workers who, after all, won’t have much difficulty transferring their skills to the tasks of EWP and crane manufacture and assembly. Kobilke is confident that 2018 will see the number of units produced

treble to around 45. “We attended Conexpo this year, and I think I can say that the North and South American market has now discovered us. We have appointed dealers in the USA and Canada, as well as in Chile, Peru and Mexico: already we’ve received the first orders from North America and are receiving strong enquiries.” And from January, ACM will also have a sales representative working in the European markets. All this marketing activity is matched by

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a push in production and product development. “I am currently expanding our engineering team,” Kobilke says. “On the design side we have four mechanical engineers, and we have three software engineers working on our control systems.” Not many manufacturers can offer remote monitoring services and the ability to do this is a differentiator

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for ACM. Maintenance optimisation software is in development that will constantly monitor the machinery right down to the component level. That will be launched in 2018 to coincide with the international launch of the new ACM 6000 60-tonne hydraulic crane mounted on an Isuzu FYX2500 10x4 automatic truck. “In the crane sector the all-terrain style tends to dominate due to its versatility but truck mounted cranes have an advantage in long distance markets because they can travel at 110kph on the freeway,” explains Kobilke. With an overall weight of 37.5 tons spread over five axles, this crane is the only one of its size that can travel without permits on the roads of Australia and New Zealand. And it is exactly this advantage that will make it attractive in other long-distance markets like the USA and Canada, he believes. As well as upgrading its in-house computer programmes, ACM is taking steps to optimise its entire supply chain. At the same time Kobilke is planning to source large machinery to handle the high tensile steel imported from Northern Europe to make the


CONSTRUCTION

larger booms: “We have to get this material into Korea to our suppliers to bend and weld the sections. A lot of these companies are mid-size family businesses, so there’s a lot of ramp-up planning with them as they put more people on and increase their capacity.” By 2021 Kobilke would like to establish a facility in the Korea Free Trade Zone that will enable ACM to do its own steel work. By then, he says, the target is to reach an output of around 85 machines a year. ACM Hire is going to be expanded, organically and, if necessary, by further acquisition, until it has a fleet of around 300 machines in Australia, and this in itself will create demand for the factory, which will need to be producing around

40 units a year as replacements. Meanwhile, Kobilke and his colleagues will be extraordinarily busy. He is in the process of hiring two more engineers, a further megatronic engineer and a design engineer for vehicles, bringing in the best available skills from Europe and Australia. And the rail units, which started this discussion, will not be neglected: they will be showcased at the Building Owners and Managers Association International show (Boma) at Austin, Texas in 2018. Electrification is not unique to Australia: by developing the best, customised EWPs and cranes for all its markets at competitive prices, the European and North American markets are there for the taking.

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P RYS M I A N G R O U P :

Co n n e c t i n g A u s t ra l i a

Written by: Catherine Sturman Produced by: Josef Smith


P RY S M I A N G R O U P - A U S T R A L I A A N D N E W Z E A L A N D

Chief Executive Officer Frederick Persson discusses how Prysmian Group’s manufacturing capabilities continue to support the growing number of infrastructure projects across Australia

F

rom Brazil and Turkey, to Germany and China, Prysmian Group has become a leader provider of energy and telecoms cables, serving customers all over the world. With sales reaching over €7.5bn in 2016 alone, the Group continues to develop its existing products to support new and emerging markets. Its exponential

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growth, reflected in the high volume of infrastructure projects within Australia at present, has seen Prysmian Group house two factories within Sydney – one for its telecommunication cables, the other for its energy division. “We are in a great location, and are a short distance from Sydney CBD, so this makes a big difference for customers who


ENERGY

want to ensure that their cables are produced and delivered on time, sometimes at extra cost – I think that’s a big selling point,” explains Frederick Persson, the company’s Chief Executive Officer. Significant investment has been placed in the development of the two factories within the last five years, with a long-term goal to deliver a personalised touch whilst providing a global presence. Such is the Group’s success, it has been the sole supplier of not only Telstra’s telecommunication cables for the last 15 years, but it

is also the major cable supplier of the National Broadband Network’s (NBN) government-funded, fibre network project across Australia. Set to complete in 2020, the Group is continually manufacturing all the required cables for successful deployment of the NBN rollout. One stop shop Striving for customer satisfaction has seen Prysmian Group become well respected throughout Australia, something which Persson notes with pride. Proactively responding to any

1st underwater optical fibre cable laid in Sydney Harbour 2015

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How do you help to reliably connect people? You start with two industry leaders. Dow and Prysmian cables. We have been working together for over 15 years designing and delivering cables for power and telecommunications infrastructure that last for decades. Our strategic collaboration and technology enable us to widely support Australia’s National Broadband Network (nbn). Approximately 70 percent of the cables that connect homes and businesses to high speed broadband are supplied by Prysmian Australia, using DOW AXELERON™ polyethylene compounds. So, the next time you connect with your loved ones through the internet, you know your broadband connection and speed is of high quality because of the high-performance materials used. Dow and Prysmian … Together, the elements of science and the human element can solve anything. Read more about our solutions at:

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ENERGY

spikes in demand, he explains that this has granted the Group an award at the NBN Supplier Summit for three consecutive years. “This is on the back of our very high ability to predict possible changes and flexibility to produce any cable at short notice,” he says. The Group therefore embeds a high level of quality control, guaranteeing high standards across the board. “With some production lines, we have speeds of up to 900 meters per minute and these are monitored automatically,” comments Persson. “If we encounter any problems with the cables, we are immediately alerted and work to make sure that this doesn’t impact the customer in any way. “We’re a global company, so I think our name carries some weight. We support customers on the cable management side, so we take care of the delivery and also give a lot of technical support when clients define their projects. I feel that we are quite competitive overall.”

• Sales reached over €7.5bn in 2016 • Two factories within Sydney – one for its telecommunication cables, the other for its energy division. • The major supplier of cables to the National Broadband Network’s (NBN) government funded, fibre network project across Australia. • Some production lines run at speeds of up to 900 meters per minute and these are monitored automatically

Increased competition The Group’s ongoing work has seen it garner positive relationships with suppliers – but even a good reputation has not removed it from common challenges within the Australian market. Utilising local suppliers has enabled reduction in any bottlenecks within its supply chain. Proximity is a significant driver, delivering potential cost savings. Consequently, the company

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P RY S M I A N G R O U P - A U S T R A L I A A N D N E W Z E A L A N D

$35 Million

Prysmian Group - Australia and New Zealand Annual Revenue

has strong local relationships with Dow Chemical and Metrod Holdings, amongst many others in the delivery of its cables. “We have been able to position ourselves as a quality product manufacturer and I think we have very few problems with regards to the quality of the cables we are putting on the Australian market,” adds Persson. “Do people prefer to pay for this? Not always, but to a larger extent we are able to support those customers that can see the value on the products we are making.” Additionally, despite ongoing growth potential, the Group also continues to tackle ongoing international challenges, especially with regards to importing products with varying levels of quality, and even compliance. “Often we find we are competing against suppliers with a very different set of standards and we have had a couple of very high issues here in Australia. We are sometimes competing with products made under fewer regulations or fewer standards which we are obliged to apply under Australian laws. Being a local manufacturer sometimes makes

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Copper wire bins in the stranding machine

“If we encounter any problems with the cables, we are immediately alerted and work to make sure that this doesn’t impact the customer in any way” – Frederick Persson, Chief Executive Officer

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ENERGY

Frederick Persson Chief Executive Officer

Frederick Persson was appointed, CEO of Prysmian Australia & New Zealand on 1st March 2014. He commenced employment with Prysmian Group, as CEO to Sweden in 2010. Frederick has a degree in Bachelor of Science in Logistics, studied in Vaxjoe Sweden, in 1996. He started his career with a Swedish steel manufacturer, SSAB. Persson held various positions mainly in sales and progressed to CEO of SSAB, Canada. He moved to the stainless steel industry becoming the MD of the French wholesaler company, IMS in Sweden.

this hard,” Persson says. Wishing for a level playing field, Persson adds: “We work to make sure that we are efficient, and whatever we lose in terms of having a more expensive workforce here in Australia, we will therefore compensate by creating smarter solutions or advanced machines – in the end we have to be able to compete in a global arena.” Future developments The use and subsequent loss of energy is something which Prysmian Group is working on reducing throughout the development of its cables in a bid to better serve its customers.

Increased energy prices in Australia and the need to become more sustainable are two key areas where the Group is allocating resources in order to provide efficient solutions and the design of cables efficiencies to the whole network. Additionally, not content to just better its existing technologies, the Group is working at supplying connectorised cables, which will support the delivery of a complete system, rather than sole parts, in order to further extend its services. “Our new invention, Prycam, is where customers will be able to monitor the cable whilst it is live and be alerted if there is a fault,”

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“We are a global supplier with the ability to supply high quality cables worldwide” – Frederick Persson, Chief Executive Officer

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Persson says. “This is something that people are asking for – to predict potential black outs.” “We are slowly moving towards a smart grid, where energy is injected into the grid depending on peak usage times. It is becoming more intellectual. We are trying to move from just a transactional cable supplier to offering the complete solution.” Delving into the renewable energy market will also open up further doors for Prysmian Group.


ENERGY

Extruder machine A steady demand for wind and solar farms is emerging within Australia, where the Group aims to deliver the cables for such projects. Adopting a proactive approach and responding to customer needs has enabled Prysmian Group to continue developing its services across Australia, whilst maintaining the focus on a personalised touch. “We are a global supplier with the ability to supply high quality cables worldwide,” concludes Persson. “Although being a corporate

organisation can sometimes be very hard for the customer to get through, I can confidently say that our customers can trust our ability to combine local capabilities and industry expertise with a global ability to source cables and solutions from any part of the world. All of it with one goal: maintaining our position as a supplier of choice.”

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DIVERSIFICATION

and EXPANSION

at CIVMEC Written by: John O’Hanlon Produced by: Josef Smith


The Australian multi-disciplinary contractor is scaling up at an impressive rate to consolidate its position as the go-to provider of all types of infrastructure, at the same time targeting new markets


CIVMEC

S

ince early 2016 when we last spoke to Pat Tallon, the energetic CEO of Civmec, the company seems to have grown almost as much as in the whole of the seven years since it came into existence. Well, not quite, but if the plans he is pursuing come to full fruition, that really could be the case at least in another year as far as the order book is concerned. It hasn’t been an easy year. Over the last 12 to 18 months the market appeared to be slowing down as investment declined and the Australian resources industries in particular suffered a number of knocks. Over that time Civmec has been doing the usual

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prudent things, like casting around for the contracts that were still being put out for tender and doing what it could to develop its market. One thing it did not do was to retrench. As Tallon explains: “We took a calculated risk and retained much of our overhead, in particular our people. We didn’t want to lose the skills and qualities of our experienced teams, so we retained those people and set them to work on estimating and project winning, targeting four or

five jobs that we liked the look of.” If Civmec didn’t win the work, perhaps that decision might have been a set back, but they did secure the projects, and now has the healthiest order book in its history, with jobs totalling around $580mn secured. The sweet thing, he adds, is that having refused to mothball any of its capacity or lay off staff, it has all the resources needed to meet its contractual commitments and can even add to the order book as opportunities arise

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CIVMEC

The Forgacs facilities in Newcastle are quite close to Sydney, with about 24 hectares of waterfront land, and there is a lot of infrastructuretype work in Sydney at the moment

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ENERGY

without increasing its overhead at all. All that could translate into a significant upside in the current financial year. With between 2,500 and 3,000 jobs in Western Australia supported by its activities, Civmec is bound to be well regarded by the state administration, particularly its new Premier, Mark McGowan, appointed in March this year – he won with a 10% swing in votes, with employment a key target. Last year we were talking about the steelwork Civmec was installing at Perth’s stunning new stadium. Civmec’s scope was completed on time to an extremely high quality, though a lot remains to be done before the facility is ready to open. New pipeline Let’s have a look at some of the projects that are now current – they all have a story to tell. Foremost is probably the award in November last year to Civmec in a 50/50 joint venture with Black & Veatch (B&V, one of the leading wastewater treatment engineers in the world) to design and construct a major

Pat Tallon CEO Patrick John Tallon was appointed to our Board on 27 March 2012. He is responsible for the development and performance of the Group, including building culture and leadership. Over the past 28 years, Tallon has accumulated significant knowledge and experience in all aspects of the construction industry and has been involved in many major oil and gas, mining and infrastructure projects.

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1,600 upgrade to the Water Corporation of Western Australia’s Woodman Point Wastewater Treatment Plant. This job ticks a lot of boxes. It is the first time Civmec has taken on a job for this client – it is a local project and this is critical infrastructure for the region, treating wastewater for about 680,000 people living south of the Swan River. The upgrade will see its capacity increased to 180mn litres a day. There’s a lot of water infrastructure investment needed in Australia, so this could lead to a major new segment for the company, as Tallon adds: “It is also an EPC alliance project which is somewhat different from our standard contractual model: herein this situation there’s a target price put on the job and the joint venture partners are very focused on bringing in the project under that budget.”

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Number of employees at Civmec

Many of Civmec’s long standing clients are in mining, and currently some 60% of the current order book stems from this sector. “We are doing a large job for Rio Tinto in Queensland,” Tallon says. “Rio Tinto is expanding output from one of the world’s premier bauxite deposits following approval of the $1.9bn Amrun project.” It involves a full package of work, including civil engineering, fabrication, electrical work and the like. The steelwork will be fabricated at Civmec’s Henderson facility on Australian Marine Complex – the largest undercover fabrication facility in Western Australia – and shipped to Queensland from there. More recently the company was awarded an expansion project at Alcoa’s Pinjarra Alumina Refinery,


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just 80 kilometres south of Perth. It’s another EPC contract, involving the engineering, procurement, delivery, construction, integration, commissioning and performance testing of a filter facility, materials handling system and associated supporting infrastructure at the site. Over the next 18 months Civmec will be integrating the world’s largest plate and frame filters at Pinjarra with the rock conveyor system. Another ground-breaking project in more ways than one is at Altura’s

James Fitzgerald Executive Chairman

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Civil and Engineering Structural Mechanical

Mining and Res

Mappi DPH Surveys is ‘ahead of the mark’ after a growth filled year.


sources

ing and Design

www.dphsurveys.net.au


Ahead of the mark DPH Surveys are specialists in providing end to end mine site and civil infrastructure solutions. The privately-owned company, head quartered in Perth WA, secured the Woodman Point WWTP contract, a joint venture between Civmec, Black & Veatch and the Water Corp, marking an exciting period of growth within the company. g

‘It has been a tremendous 12 months for the company. We’ve got a talented team who have all played instrumental roles in our continued growth,’ David, the Managing Director and founder of DPH Surveys said, ‘it has been truly awing to set some pretty heavy p goals and achieve them.’ DPH Surveys employees also worked closely with Civmec on other projects including the South Hedland Power Station and Brockman Fuel Hub, delivering the civil and structural mechanical packages.


‘We make sure that we do the job right, play to each team member’s strengths and keep to the client’s schedule. That’s why clients like working with us,’ David said when speaking of past projects, mainly in Western Australia’s Pilbara region. Their portfolio of projects in the region port include the Roy Hill Terminal Yards, Newman Orebody 24, Cape Lambert Stock Yards and Port Hedland Inner Harbour projects. As DPH Surveys reaches completion of the previous 12 months’ milestones, David and his team are looking ahead to new goals. Which he says include developments in UAV and other technologies that can be utilised for providing a better survey service, renewable energy projects and increasing the civil and mine site inc infrastructure portfolios.

www.dphsurveys.net.au


CIVMEC

Rod Bowes

Justine Campbell

Kevin Deery

Charles Sweeney

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Terry Hemsworth

Damian Kelliher


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We have already built a precast concrete workshop which allows us to do prestressed items like bridge beams so we can target major infrastructure project in New South Wales and Queensland – Pat Tallon, CEO Pilgangoora opencast lithium mine in the Pilbara. Civmec has secured a package of civil works there, and Tallon is hopeful that more packages will follow. Lithium, he says, is an up and coming mineral much in demand from the technology industries, especially for use in batteries. All in all, Australian mining is looking up at last, with newer minerals like lithium coming along, and traditional gold mining coming back as world gold prices rise – in June, a joint venture with Amec Foster Wheeler and Civmec won a $298mn contract to build out the Gruyere Gold Project 200km east of Laverton in Western Australia. The scope of work includes the engineering, procurement and construction of the process plant and associated infrastructure. “All of

these contracts,” says Tallon, “apart from Amrun which is on a prime subcontract basis, are EPC jobs, and that alone puts us in a different space from where we were last time we talked.” Lithium, gold, even iron ore, is making a comeback, he adds. “Our regular clients in the iron ore space, like BHP Billiton and Rio Tinto, are doing feasibility studies and looking at large packages of work that will come on in the outlook period. We have a strong relationship with both clients so are hopeful we will be in the running for some of those packages.” Setting sail As we reported last year, Civmec acquired the Forgacs property and facilities at Tomago, Newcastle and the name of Forgacs, Australia’s largest privately owned shipbuilder.

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We don’t want to be a company that talks a lot: we prefer to let the market judge us by what we are delivering – Pat Tallon, CEO The successes we have been talking about above might look like plenty to be getting on with, but the potential for Civmec’s new subsidiary Forgacs Marine and Defence are huge as the Australian Defence Department pushes forward a series of new ship acquisition and maintenance programs. “Our motivation for the acquisition was actually twofold,” explains Tallon. “The Forgacs facilities in Newcastle are quite close to Sydney, with about 24 hectares of waterfront land, and there is a lot of infrastructure type work in Sydney at the moment. We’re going to use these facilities to develop on the east coast and we are currently expanding them. We have already built a precast concrete workshop which allows us to do prestressed items like bridge beams so we can target major infrastructure projects in

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New South Wales and Queensland.” The fabrication facility is being expanded too, new equipment is being brought in and the aim is to create a similar site to the Henderson yard. The other motivation behind the acquisition is to be able to bid for some of the upcoming work announced by the Navy in an $89 billion programme. Tallon continues: “The government is committed to several defence shipbuilding programmes, one being Pacific patrol vessels, one offshore patrol vessels (OPVs), and they also intend to order nine new frigates and 12 submarines.” The first package off the blocks is the OPV contract and if Tallon can’t secure that it will not be for want of capability or effort. Three ship design firms were shortlisted by the government to deliver 12 vessels ‘to undertake constabulary


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missions and the OPV will be the primary ADF asset for maritime patrol and response duties’. In April 2016, the three contenders for the $3bn OPV project were named, Damen of the Netherlands, Fassmer of Germany and Lürssen of Germany. Civmec/Forgacs had discussions with all three. Forgacs ended up singing a memorandum of understanding (MOU) with ASC, the government owned shipbuilder, to bid in partnership for two of the three designers, Damen and Lürssen. The winner will start construction in 2018 with the first vessel delivered in 2021

– and as long as the design of either of those companies wins out, Forgacs, in partnership with ASC will be involved in constructing them, initially in South Australia and transitioning to their facilities at Henderson in Western Australia. This would take Civmec into a new league, though one for which it is thoroughly prepared. And as the government’s wish is for a continuous build and maintenance deal, it could bring in work for decades to come. Staying on track Both client and partner will be able to check daily progress of

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their project and track every component in the process while the project management team will be able to track every man-hour spent via its proprietary Civtrac platform. “We can find out straight away if we are on schedule or behind and control our costs that way,” explains Tallon. “Nothing on the market was robust enough for us so we developed our own. It was a big factor in winning the confidence of the ship designers we are now working with. It does not guarantee that everything on your project goes well all the time but it gives you the power to know as soon as it does not and address it. If you can spot something slipping when you are at the early stages, you can generally catch it before it goes too far The government has also announced that all future shipbuilding for defence will either be completed around Adelaide, or at Henderson as the second major shipbuilding precinct. The entire Australian submarine fleet and half its surface ships are based at the Royal Australian Navy’s largest fleet base, Fleet Base West, also called HMAS Stirling, on the shores of Careening Bay on Garden Island, close to Perth, so the Henderson facility is perfectly situated to serve it being only 10km away. Accordingly, Civmec is going to invest $80mn in building a second facility alongside its existing Henderson yard that will allow it to build ships and carry out maintenance, under cover, 24/7, 365 days a year. “It’s state of the art, as good as any in the world,”

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Tallon declares, on the authority of the top global consultants. “The building will be around 205m long by 130m wide. That’s a similar area to the existing facilities but it will have significant height, up to 60m, so you will be able to get a ship and all its superstructure in there

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for repair and maintenance.” The land has already been secured and work started. A large sandblasting and painting facility is being added, but for many purposes the existing yard can support the shipbuilder with steelwork, plate cutting and the like – there


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will be no capacity tight spots. A compact summary is difficult – Pat Tallon is a hands-on leader and he expects his team to be the same way. “I ask God for a few extra hours each day,” he quips when asked how that is possible given the way the business has grown.

“We don’t want to be a company that talks a lot: we prefer to let the market judge us by what we are delivering.”

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The connected data hubs for Asia Pacific Written by Niki Waldegrave Produced by Glen White


Peter Adcock, Digital Realty’s APAC vicepresident, design and construction, talks about the company’s growth plans, and why he won’t be totally relying on driverless cars anytime soon


D I G I TA L R E A LT Y

D

igital Realty is the world’s largest full-scale data centre provider offering colocation, interconnection and cloud services. It has more than 150 data centres in 11 countries, servicing more than 2,300 companies of all sizes in 33 global markets across its secure, network-rich portfolio of buildings located throughout Asia Pacific, North America and Europe. Equating to more than 26mn sq ft of Data centre space across the world. For more than nine years, the business has delivered a portfolio of data centre solutions – including Digital Realty has announced a joint venture with Mitsubishi

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colocation, Cloud services, business ecosystems, Turn-Key Flex (TKF), and powered base buildings (PBB) – with a record of 99.999% uptime, unmatched by any other data centre provider. In October, Digital Realty announced it has entered into a 50/50 joint venture with Mitsubishi Corporation to provide data centre solutions in Japan. The joint venture, named MC Digital Realty, will benefit from Mitsubishi’s local enterprise expertise and established data centre presence in Tokyo, as well as Digital Realty’s global client base and industry-leading track record of


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data centre operational excellence. Digital Realty will contribute its recently completed data centre development project in Osaka, while Mitsubishi will contribute two existing data centre facilities in the western Tokyo suburb of Mitaka. Collectively valued at approximately 40bn Japanese Yen – or approximately $350mn – the three assets will build a meaningful platform to serve the broader Japanese market, with the potential to significantly expand its scope over the next several years. And in September, Digital Realty, which turns over $2.7bn annually,

‘FOR NINE YEARS, DIGITAL REALTY HAS DELIVERED A PORTFOLIO OF DATA CENTRE SOLUTIONS WITH A RECORD OF 99.9% UPTIME, UNMATCHED BY ANY OTHER DATA CENTRE PROVIDER’

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Based in Sydney, Australia, Greenbox delivers innovative data centre architectural design services to clients throughout South East Asia. Resilience is at the core of our philosophy. Resilient buildings don’t just sustain the required functionality but evolve alongside it – a symbiosis of structural function, operational needs and style.

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announced the commencement of new data centre SYD11 – its fifth in Australia – which is being built in Erskine Park in Western Sydney. The facility will be adjacent to the company’s existing SYD10 facility, and this signifies huge expansion in the AUS market, adding to the other three Australian facilities in Digital Realty’s Australian portfolio – SYD 12 in North Ryde, and the two data centres in

Melbourne, MEL10 and MEL11. Once operational, SYD11, located across 16,360 sqm, will be a 14MW facility and the build, which will employ around 500 contractors, is expected to take 12 months. APAC vice-president, design and construction, Peter Adcock says Sydney – which has the biggest tech start-up ecosystem in Australia – is crucial to the Digital

“We’ve got the potential to pretty much double our APAC footprint in three to five years” – Peter Adcock, Digital Realty’s APAC Vice-President, Design and Construction

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D I G I TA L R E A LT Y Realty’s ambitions in Asia-Pacific. It also has award-winning sites in Singapore, Hong Kong and Osaka. “We’ve got the potential to pretty much double our APAC footprint in three to five years,” he says. “Australia – and Sydney particularly – is an ideal location to be a hub. There’s a lot of demand from a whole range of companies that want to establish a presence and provide a low latency service in the country in Australia. “Sydney’s ideally placed on the Eastern Seaboard, with the fibre

‘THE ACQUISITION OF TELX IN OCTOBER 2015 UNIQUELY POSITIONED THE BUSINESS TO PROVIDE A COMPLETE RANGE OF DATA CENTRE SOLUTIONS ON A GLOBAL SCALE’ 146

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optic backbone that runs up through Brisbane and Queensland, and down to Canberra and Melbourne. It picks up a large part of the Australian population, and is sitting on submarine fibre cables too.” The company is currently working on its latest state-of-the-art, trademarked 4.0 Architecture POD (performance optimised data centres) design, and will install it at the new


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facility. Its unique trademark has been developed from the knowledge gleaned through the construction of more than $2.5bn worth of data centres globally, and uses a modular methodology to build-out raised floor data centre space using standard power and cooling building blocks for cost-effectiveness, design flexibility and energy efficiency. It will boast the same cooling solution

that’s being adopted at its larger scale facilities in the US, which have a pumped refrigerate economiser cycle on it as well, ensuring excellent annualised Power Usage Effectiveness (PUE) without any water usage, which can be quite excessive in large data centres. “We’ve got the lithium ion battery technology as well that we’re adopting,” Adcock reveals, “which gives a better performance than traditional lead acid. And on the monitoring side, we’ve got the data

“Australia – and Sydney particularly – is an ideal location to be a hub” – Peter Adcock, Digital Realty’s APAC VicePresident, Design and Construction

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centre information management of more than 20mn people and has (DCM) product, which is a digital a GDP of approximately 80trn yen. proprietary. It gives the team in the “The Digital Osaka 1 Data Centre US head office global visibility of the was the big one that really got the whole portfolio around the world. attention of the guys back in the US,” “That works off the same model adds Adcock. “That was 95% sold database as the BMS system which before it was opened. It started out is a Schneider Struxuware Building as an easy stepping stone for a lot of Operation (SBO), Power Monitoring the American companies, working Expert (PME) unit. This means with an S&P 500 company they we can log in and find the know, and provided utilisation of all our a product they’re properties around familiar with because the world in different it’s consistent around locations, giving us the the world, barring information to manage any legislative or Number of and fine tune operation code differences.” employees at and performance.” Osaka is a melting Digital Realty The significant pot of many industrial investment into SYD fields, a broad 11 and the Asia Pacific cross-section of businesses, construction plan over the last 18 universities and tech development. months stemmed from the Digital Two cloud social media companies Osaka 1 Data Centre in Japan – its immediately snapped up the space, first facility in the country, which and in May, Digital Realty announced provides 7.6MW of IT capacity. it is building Digital Osaka 2 ¬Data A thriving financial and colocation Centre – which is four times the centre, Osaka is the Silicon Valley of size of Osaka 1 – alongside it. Japan. A gateway for international It’s in the final stages of design and exchanges, it houses a population will launch next year. The two Osaka

1,400+

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“The Digital Osaka 1 Data Centre was the big one that really got the attention of the guys back in the US” – Peter Adcock, Digital Realty’s APAC Vice-President, Design and Construction

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centres will create a Connected Data Centre Campus, which SYD 10 and SYD 11 have been modelled on. “We always planned to expand in Sydney,” Adcock continues. “We also originally purchased a block of land next door to SYD 10, and it’s the next iteration of design – where SYD 10 is seven or eight megawatts, SYD 11 will be up to 14. “That’s driven by the increased density of the computer equipment that’s going on the white space, so that’s gone from a four to five kilowatt per cabinet average up to six, seven, eight – and in Japan we got some of that up to 12 to 15, so demand is driving the density increases as well, which is where we’ve had to become a lot more diligent on the airflow management.” Earlier this year, Digital Realty CFO for APAC, Krupal Raval, revealed many of its global top-tier clients are looking to expand massively in Australia, facilitated by the Connected Campus of SYD 10 and 11. Digital Realty Connected Campuses bring all the critical data centre, network elements, cloud


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Build Here. Digital Realty.

and connectivity together under a single, secure environment for numerous Australian and international customers. They deliver the on-ramp to the cloud, plus Digital Internet Gateways that optimise customer value through massive network-dense connectivity. The beauty of the Connected Campus is that even on SYD 11’s first day of operation, there’s already a connectivity-rich environment next door, and because the two data centres are side by side sharing a common boundary, the conduits at the boundary already exist and can be connected in. “It gives a very strong ecosystem

of customers through the POP and service exchange, and rather than coming in and out of the data centre, they’re actually doing business within it,” Adcock explains. “If you have a large mix of customers, like we have, they’re all exchanging amongst each other, and once you get the on-ramp to the Cloud, players such as Amazon, Google and Microsoft – Facebook is doing something different – once you get one or two of those companies in, the whole thing starts to multiply.” In December 2015, Digital Realty announced a partnership with IBM to launch Direct Link Colo, a solution that connects

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customers its data centres directly to IBM Cloud via SoftLayer’s global Cloud infrastructure platform. By removing third party carriers, the hybrid eco-system for organisations is easier. “Some of the companies are so big, they acquire to catch up,” he adds. “IBM acquired SoftLayer and are buying into new digital technology. Microsoft is putting a lot of money to catch up with Amazon, who got an early adoption lead. And Google does its own thing. Adcock says because the industry is growing so quickly, the biggest challenge is finding employees with the right skillset – and keeping them. “We’re being asked more frequently to provide remote services in the data centres that we’re working in,” he reveals. “I think that’s just a case of, things are growing so quickly, some of our customers are trying to push more of that onto us, which is something we support. “But everyone is struggling to find people that are trained. It’s interesting, as we’re actually finding companies that are either evolving the company itself – or groups within the company – to specifically service data centre work. “It’s quite a unique skill set because, you actually want a high-quality product built quickly to start with, which is challenging itself – but these facilities are never build out 100% day one. – Peter Adcock, Digital “And we use a modular, POD-type system, so as Realty’s APAC Vice-President, you go back and do those build outs in a live data Design and Construction

“You need tradespeople that are very aware of what environment they’re working in – you don’t want something they’re doing to bring down customers’ operations”

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“We’re being asked more frequently to provide remote services in the data centres that we’re working in” – Peter Adcock, Digital Realty’s APAC Vice-President, Design and Construction

Latest stateof-the-art, trademarked 4.0 Architecture POD (performance optimised data centres) design

centre, you need to have tradespeople that are very aware of what environment they’re working in – you don’t want something they’re doing to bring down customers’ operations. “These have to be very precisely planned and designed and built so that you can shut down sections of

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it, and use your redundancy to do your maintenance without impacting on the customer. So, you tend to build quite strong relationships with very precise people that understand the whole Permit for Work process and are very detailed.” He reveals another challenge is that


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whenever anyone wants to start up a data centre, they try to entice staff away from Digital Realty, because they know they’ve been well trained, and the process and procedures in place are industry-leading. In Australia, co-location growth is predicted at a compound annual growth rate (CAGR) of 11.4% until 2022, and managed hosting revenues predicted to grow at a CAGR of 14.5%. But Adcock claims the future of colocation managed services is hard to define over the next few years. “Now, with your cloud, you’ve got private, public and hybrid,” he explains. “What colocation

does, and always will, is allow the smaller companies as they’re growing a stepping stone. “But equally, with the Amazon and Microsoft, they’re almost virtualising that colocation process – and to the same extent, we are, through the service exchange. That gives you the chance to connect to a lot of different services, and electronically, where in the past you used to have the physical cross connects. “They’ll still be around, but I think the business is evolving and virtualising a lot of those features. I think the big thing is going to be ‘bots’, so rather than speaking to a

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Digital Tseung Kwan O - A virtual tour of Digital Realty’s Hong Kong Data Center

ONCE FULLY OPERATIONAL, SYD11 WILL BE A 14MW FACILITY, ACROSS A TOTAL OF 16,360 SQM person, it’s an automated service.” He uses the analogy of driverless cars, saying a lot of those features are already currently in the background, ditto with aeroplane auto pilots, “but we still have pilots there to step in when something out of left field happens that hasn’t been programed in, and would take some

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time for a computer to adapt. “There’s always going to be a future there for these,” he adds, “it’s just a matter to what scale they fit in to the whole stepping stone process.” Data centres are essential utilities, as like in previous centuries, when power, electricity, water and telephone exchanges were. Because data


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centres and WiFi-type services are provided at the edge, people have got used to having instantaneous content-rich data, which then dictates low latency high bandwidth services – and while they’re an essential utility, the performance they need to operate is at such a high level. “There’s a lot of talk about edge computing, and really that falls back into where you get demands for low latency,” he adds. “There’s such a data-rich environment demanded nowadays. “We used to have main frames and desktops, then it was laptops, and now handheld devices are doing the same thing. There’s so much compute power that’s embedded everywhere now that needs to be connected back to somewhere, and the Internet of Things is going to be an amazing opportunity for people who mine that for performance and applications.”

Adcock says he sees DNA genome as one of the major technology breakthroughs, and finds it mapping mind-blowing how you can have bespoke medicines targeted for you based on what genes you’ve got and how they react. “It used to take years to map the DNA genome of the humans,” he says, “and now they’re offering it as a service which is done in a matter of days. Behind that is massive compute power, so we’ve seen some of the institutional companies investing a lot of money in those analytics. “Sometimes, you dare not ask what’s happening in some of those data halls. Our POD is typically 1,000 sqm of white space and you walk in there from one end to the other and it’s just rows and rows of computers – and what they can be doing on them now is amazing.”

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The World’s Most ‘High Tech’ Hospital Written by John O’Hanlon Produced by Glen White


R O YA L A D E L A I D E H O S P I TA L

The new Royal Adelaide Hospital (new RAH) is showing the world how technology can vastly improve patient outcomes in a cost-effective manner: automation and data integration work hand-in-hand to get more people well

O

n 6 September 2017, the doors finally closed on the much-loved Royal Adelaide Hospital as an honour guard of about 100 staff members gathered outside its Emergency Department, spontaneously cheering and applauding as the last patient was wheeled out the doors and carefully loaded into an ambulance for the trip to the $2.3bn new RAH.

This marked the completion of a progressive ‘soft opening’ process. Minor surgical procedures and outpatient appointments had been taking place at the new RAH for some weeks to accustom staff to the different systems. As many as possible of the 600 in-patients had transferred to other hospitals. The remainder were moved across at the rate of approximately 100 a day on 4, 5 and 6 September. The official opening of the new facility can be best placed at 7am

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on Tuesday 5 September, at which point the old emergency department closed to new admissions and the emergency department of the new hospital simultaneously took over. It’s more than 30 years since a new hospital was commissioned in South Australia, so the opening was always going to be a landmark event for the state’s 1.6mn citizens. But the new RAH is much more than added tertiary healthcare capacity. It is the most advanced hospital in the whole of Australia, and the single largest infrastructure project in the history of the State of South Australia. The financing, design, construction and operation of the non-clinical services for the next 35 years was undertaken by SA Health Partnership Consortium (SAHP), made up of Hansen Yuncken, Leighton Contractors, Macquarie and Spotless. SAHP, incidentally, has recently rebranded as Celsus. This


H E A LT H C A R E

“We have had very few issues and we have managed them without affecting our service to the public: I am smiling from ear to ear!” Bill LeBlanc, Executive Director and CIO, SA Health “I started my career in IT at a hospital about 34 years ago and I worked there for four years, went into the private sector and then came back here in 2013 in my present role. When I started the IT was a back-office support function. It supported patient demographics, when they came in and left, what beds they were in etc but the medical notes were largely on paper, the biomedical devices were standalone electronic devices. These days you have convergence of technology, computer controlled biomedical devices and digitised electronic medical records. People at the sharp end of the business, delivering services to patients, now rely on technology to do their daily tasks. Ten years ago, if the technology went down there was little risk of patient harm. Now that risk is real and present. The mission critical nature of technology today has changed the role of the CIO in healthcare.”

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Passion Innovation for life Together we can save with more livespurpose Getinge is a global provider of innovative solutions for operating rooms, intensive care units, sterilization and endoscopic reprocessing departments, endovascular procedures and for life science companies and institutions. Based on our first-hand experience and close partnerships with clinical experts, healthcare professionals and medical-technology specialists, we are improving the everyday life for people – today and tomorrow.

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Passion for life Getinge has been a strategic partner with SA Health throughout the ten-year journey that culminated in the opening of the new Royal Adelaide Hospital (nRAH) in September. The hospital itself represents a new benchmark in operational excellence and the integration of healthcare systems for the benefit of its patients: with the largest equipment and infrastructure package it has ever delivered, its opening certainly marks a milestone for Getinge. “We are incredibly proud to be a significant part of the team of medtech providers that has worked to supply world-class equipment and medical devices that support both patients and

staff in this new state-ofthe-art healthcare facility,” says Jaylea Strauch, ANZ President of the company. Among Getinge’s leading edge technologies at the hospital are its T-Doc sterile supply management system and the comprehensive infection control products that support the worldleading Central Sterile Supply Department (CSSD) at the hospital. The eight emergency rooms and 40 technical suites are fitted with its integrated technology control centres; TEGRIS for intuitive operating room integration in the technical suites and INSIGHT managing the patient flow throughout the hospital in both the technical suites and

Together we can save more lives

emergency department. This TEGRIS installation is Getinge’s largest in the world: “It provides central control for operating rooms and emergency suites,” explains Ms Strauch, “while our INSIGHT solution manages workflow from emergency admission to outcome – all the way through a patient’s treatment.” As a leading global medtech company, Getinge was able to bring together expertise from round the world, supported by a large team of local service engineers, to deliver unrivalled services at the new hospital. “For us, as for nRAH, enabling positive outcomes for the patient is always the priority,” concludes Jaylea Strauch.

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state-of-the art hospital, delivered as a Public Private Partnership under the State Government’s Partnership SA Model and forming part of the South Australian reformed health system, will provide world-class care for the people of South Australia.

expect the new RAH to rank as the world’s leading high-tech hospital for long,” says Bill Le Blanc, CIO of SA Health. “Technology advances fast these days and each new hospital project learns from the last and leapfrogs to the front.” Le Blanc is responsible for all Rooms with a view aspects of ICT across the whole But more than this, of SA Health, leading it can lay a justified a division of 700 claim, at least for ICT specialists with the moment, to responsibility for deliver the most capital and operating technically advanced budgets over $240m healthcare in the annually. Thirty years world, including ago, when medical Number of Employees complex medical, technology was at SA Health surgical, diagnostic emerging, the IT team and support was still looked on as services and ‘super the backroom boys and speciality’ services including renal girls of healthcare, whose main job transplantation, major burns, and was to keep the lights on. The new complex spinal care. The new RAH, since the project was started hospital takes over all the services 10 years ago, has grown up in a of the current RAH and some of the different universe, one in which every more complex services from The stage of planning is strategically Queen Elizabeth Hospital. It will directed by a partnership of IT also provide high quality teaching and medical professionals. and research facilities. “We don’t “The technologies themselves

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are tried and tested,” says Le Blanc. “We have pulled them all together, borrowing ideas from other new hospital builds round the world in the last decade. What is leading-edge is the sheer amount of technology in a single facility. As for the move, it has gone remarkably smoothly. We have had very few issues and we have managed them without affecting our service to the public. I am smiling from ear to ear.” Nobody wants to be in hospital but if you have to be, the new RAH is the place to be. It has 800 beds, but you won’t find a traditional ward. Every single in-patient has his or her own room with en-suite facilities and, if they are mobile, easy access to outdoor garden areas. A variety of internal gardens, terraces and courtyards provide an interactive and uplifting environment, with internal and external performance spaces accessible to patients, staff, visitors and members of the public. Depressing corridors and waiting areas are also relegated to history - art integrated right across the 10-hectare site celebrates

Geoff Peach, co-Directors of the IT implementation programme at the new RAH Geoff Peach is a hospital IT guru based in Queensland. He has lived out of a suitcase, away from his family for three years to help deliver the new RAH work program. His ability to calmly lead technical teams through complexity while making it all look straightforward has been very impressive. There are a lot of new technologies in this hospital that Le Blanc’s established team were previously unfamiliar with. Peach’s know-how with these emerging technologies combined with a comprehensive big picture view of hospital business operations and deep understanding of supplier sub-contracts has been a critical success factor.


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YOU SEE AN ICONIC STATE-OF-THE-ART HOSPITAL.

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New Royal Adelaide Hospital partnering with Spotless for asset management, facility maintenance, catering, cleaning, linen distribution, grounds and gardens, patient support and security services. ∙ Image courtesy of HYLC

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enquiries@spotless.com SPOT0633


H E A LT H C A R E

South Australia’s unique landscape rates than you get in ward based and cultural history, creating a hospitals and reduced readmission welcoming, attractive place of rates.” Without increasing staff healing with the overarching creative numbers, he adds, more patients design theme of “a hospital within can be processed annually with a park – a park within a hospital”. the same number of beds. The Typical of a hospital stay is the trip simple innovation of having opening downstairs for an x-ray, scan, blood windows, looking out on greenery test or other specialist and controlled by the check. Patients at patients themselves, the new RAH won’t has been shown have much of that to to speed healing do, as the hospital is and wellbeing. equipped with mobile equipment that can Designed-in be wheeled into their Number of Employees technology room. Apart from The team dedicated at New RAH CT and MRI scans, to deploying mobile imaging allows technology to this the bulk of x-rays, hospital and its ultrasound procedures, and scope systems number around 200, but investigations to be conducted in the the people who put it to work day patient’s own room for in-patients. by day are the clinical staff. Getting This cuts down on anxiety as they everyone familiar with the systems wait for their turn to come round. ready for the move was the joint All this may sound expensive but: responsibility of the equipment “We believe it is efficient because it is manufacturers and the IT teams: designed to shorten length of stay,” and part of the planning had to says Le Blanc. “We expect better encompass agency staff too. It is clinical outcomes, lower reinfection no longer enough for agencies to

6,500

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send along qualified temporary nurses, who will always be needed to fill gaps in capacity and cover staff leave and sickness, unless they are ready to hit the ground running, so the hospital had to work with the firms it uses to pre-train the people they would send along to the new RAH. When everything is as smart as it can get it is hard to single out what to feature. After only a few weeks, though, some of the new systems are delivering quantifiable results. “I am very pleased with the investments we have made in the clinical data integration (CDI) technology. We are getting early feedback from doctors that this is already helping them make better-informed clinical decisions, resulting in better outcomes for the patients. I have been given examples where treatment decisions, that might not otherwise have been taken, have been made because of the technology they have access to. Better outcomes are already beginning to emerge”. Le Blanc also referred to the

John Edge, co-Directors of the IT implementation programme at the new RAH

Enterprise Patient Administration John Edge brings pedigree System (EPAS) whichahas beenin running very large-scale mission critical IT implemented at the new RAH, from paper the big medical end of town. With the replacing records dependence that modern health services at the old RAH and now being now have on reliable technology, implemented acrosssister South Australia. health’s unlikely industries from This will generate significant an IT standpoint are banking, defence reductions in medication errors and and advanced manufacturing. Edge’s extensive background in executing improve patient safety. This single technology projectselectronic in large banks and system for state-wide global motor vehicle manufacturing medical records now has close to ensured he brought a take-no-prisoners 2,000 users at any given time. approach to deliver a medical grade technology service that is responsive, highly resilient, and always on.


R O YA L A D E L A I D E H O S P I TA L

Automation that benefits patients

The 25 automated guided vehicles (AGVs) that deliver linen, food, surgical instruments and medicines across the hospital work round the clock and provide efficiency savings in terms of porterage and logistics. “The pharmaceutical robots give us efficiencies in staffing but, more importantly, reduction in errors, picking the right drug and dose, and getting that to the right patient,” Le

Blanc enthuses. “There are huge benefits in terms of volumes that can be picked in a day and accuracy. This allows the pharmacists to do what they are trained to do which is to consult with the clinicians on treatment and medical outcomes rather than process-based tasks.” Both of the new RAH’s pharmacies use medication dispensing robots. The system decreases turnaround time for dispensing and reduces

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ROBOTS IN FOCUS

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A fleet of 25 RA-GVs. Contour/Range-sensing navigation. Trolley pick/drop stations with automatic RFID signalling. Automatic Park’n’Charge area. Central fleet control station with automatic scheduling of RA-GV movements plus elevator & auto-door activation controls.

Benefits include: • Greater efficiency & traceability. • Increased safety. • Reduced costs. • Less damage to equipment. • More staff time can be reallocated to direct patient care.


THE 25 AUTOMATED GUIDED VEHICLES (AGVS) THAT DELIVER LINEN, FOOD, SURGICAL INSTRUMENTS AND MEDICINES ACROSS THE HOSPITAL WORK ROUND THE CLOCK AND PROVIDE EFFICIENCY SAVINGS IN TERMS OF PORTERAGE AND LOGISTICS

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the amount of inventory required by 20-30% and reduces wastage from expired stock. In addition, there are more than 100 automated dispensing cabinets in patient wings. Nurses input the patient ID and biometric authorisation using staff fingerprints. The cabinet ejects a drawer containing only the medication (and correct dosage) prescribed for the patient. This technology also contributes to the physical security of medicines, cutting the opportunities for drugs, especially narcotics and other controlled drugs, to go astray. Another smart application is the wireless system that tracks such assets as wheelchairs, infusion pumps, barouches. Over 3,200 wireless access points throughout the hospital can locate them in real time via embedded chips and IoT technology, much like triangulation from mobile phone towers. This locates the nearest available asset when it is needed by staff. Additionally, the system allows security officers to locate and attend staff quickly when

“We expect better clinical outcomes, lower reinfection rates than you get in ward based hospitals and reduced readmission rates!” – Bill Le Blanc, Executive Director and CIO, SA Health

they operate a wearable alarm. Within the operating theatres, the integration of clinical data onto monitors allows surgical teams real-time access to medical record information, data captured by cameras on medical scopes, biomedical metrics and x-ray, CT and MRI imaging. High definition video capture and transmission in all theatres and treatment rooms allows junior doctors and students to

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OPERATIONAL EXCELLENCE

Technical Suite

The hospital’s 40 operating theatres, or technical suites, give surgeons a data-rich environment thanks to the ‘clinical data integration’ approach. • Each suite measures 65 square metres • Most suites have large windows to allow in natural light • Critical trauma suites linked to the emergency department and the helipad by “hot lifts” for fast transport of patients • Ceiling mounted swing arms carry up to six computer monitors • Simultaneous data feeds from medical scopes, electronic medical records and biomedical metrics in real-time from the operation • Imaging, including x-rays, CT scans and MRI • Equipped with Clinical Digital Integration (CDI) technology high definition video cameras that capture all procedures on video • Ability to consult with specialists during the operation • Students observing the procedure see more but don’t crowd the theatre • Result: less risk of infection, better outcomes


H E A LT H C A R E

New Royal Adelaide Hospital Tour

be virtually present at an operation. The surgeon can consult with other specialists, and with only key participants present the risk of cross-infection is much reduced. Premiums from partnership

Design changes as technology advances. The building was originally designed to have three separate IT networks - one for biomedical traffic, one for conventional e-health and EMR patient administration data traffic and another for the PPP

partners’ IT systems that operate services like climate control, security and cleaning. However, over the construction period, Multiprotocol Label Switching (MPLS) technology, a data-carrying technique for highperformance telecommunications networks, progressed enough to justify simplifying this to a single physical network. “That was new for government, and relatively new for the industry,” says Le Blanc. “In the past,

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“The pharmaceutical robots give us efficiencies in staffing, but more importantly reduction in errors, picking the right drug and dose, and getting that to the right patient” – Bill Le Blanc, Executive Director and CIO, SA Health

biomedical data was something you’d always want to isolate physically rather than running it over the same wire as our administrative IT traffic and the builders’ IT traffic. It saved money because instead of having to route and switch networks

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for three different physical fibre networks, we are now on just one.” Since the building has the largest physical footprint in the southern hemisphere, the savings in wiring alone was considerable. Similarly, over the same period,


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wireless networks developed, so more data traffic could safely be transmitted that way. “When it was first designed we would never have dreamed of running any biomedical equipment data over a wireless network,” Le Blanc says. “A lot of it still is wired but we are now running biomedical traffic over the wireless network as well.” The IT team has to go through a rigorous competitive process when awarding contracts. Value for money is important but in a medical environment it is not the primary parameter. Maybe 10 years ago, hospitals were not so dependent on technology as they are now to perform their core function. Now if some of that technology is not available the hospital will not be able to function. Robustness, stability and reliability are vital, according to Le Blanc. “We look for examples where the technology has been used in other medical situations and if that is not available, in other mission critical industries – banking, finance, defence even. We can’t do it all ourselves. These modern

Paul Lambert, Executive Director of the new RAH Paul is a seasoned health service executive leader and was tasked with overseeing the activation of the new hospital and transitioning services from the old hospital. This involved leading significant business change in almost every element of work practices as well as the complex logistics of the actual move without disrupting services to the public. Lambert ensured that the technology elements were core to, and integrated with, broader hospital work process redesign and training programs for staff. He has been an exemplary leader of change, with over 6,000 employees at the RAH being taken on this change journey.

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“We are getting early feedback from doctors that CDI technology is already helping them make better-informed clinical decisions, resulting in better outcomes for the patients” – Bill Le Blanc, Executive Director and CIO, SA Health

environments are so complex that you have to have a consortium of service partners who can assist you. We are physically a long way from the rest of the world here – if something goes wrong we can’t wait a couple of days for someone to fly out from Europe or the USA - we need local partners on the ground and that comes into the selection criteria as well.” So, an overseas technology supplier needs to be able to give strong local support. “One of the advantages for us in using that local offering is its tight integration with pharmacy reimbursements

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through our Medicare system which is more difficult for an international provider to keep up with,” Le Blanc observes. Examples include DXC Technology, which provides the iPharmacy pharmacy management system used by the new RAH in common with hospitals across Australia; Allscripts, the partner for electronic medical records and patient administration; Carestream for the medical imaging system and Cerner’s Millennium pathology system. “As far as possible we try to draw a straight line from any technology to show how that contributes to patient


H E A LT H C A R E

L-R Geoff Peach - Bill Le Blanc - John Edge

outcomes,” Le Blanc adds. IT in healthcare is all about finding new and better ways to do things. “We can’t take much of a breather now that the hospital is up and running because there is always room for improvement,” Le Blanc continues. “I am happy that the hospital’s first month has gone so smoothly of course, and that

has been down to every member of my team. We’ve had to ensure that the right people are available to deal with the inevitable speed bumps that come up. And because there is so much technology in this facility we have to make sure that once the patients move in the right technical people are on the spot. We have had a small army

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RAH Celebration Video

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of technical people in the building to address any glitches. For me, it has been more a matter of keeping the executive radar scanning and checking that there is no impact on clinical service delivery.” And he doesn’t take all the credit for IT, applauding the clinical and admin staff whose core skills do not lie in delivering a project of this nature. “Our staff were under pressure delivering high quality service at the old hospital while at the same time working out how the change to a new hospital would affect their work practices. That is a significant workforce change management challenge but they embraced it.” Technology is not about replacing people, he says, more about enabling them.


Curtin University

Education Transformed

Written by Niki Waldegrave Produced by Andy Turner


CURTIN UNIVERSITY

Curtin University’s CIO Chris Rasmussen tells Niki Waldegrave how its multi-million dollar Digital Futures programme is transforming and empowering the global organisation

C

urtin University has campuses in Australia, Dubai, Singapore and Malaysia, partnerships in Vietnam, Mauritius, Sri Lanka, Vietnam, China, and Aberdeen (Scotland) and more than 30% of its students are from overseas.

Obviously, IT is critical for the university, which is currently is celebrating ‘50 years of innovation’ and has an annual digital budget of $57mn. When Chief Information Officer Chris Rasmussen joined in February 2013 he was tasked with transforming the organisation’s digital capabilities and offerings - no mean feat considering it boasts 4,160 staff (FTE) and 58,216 students. “We had strong support from the COO, Ian Callahan, and looked at the organisation from an ‘outside in’ perspective,” he says, “and it was obvious we needed to be more agile, more flexible and have certain capabilities, some of which we’d have to work on as we go.” A programme called Transforming Curtin IT - later renamed Digital Futures - was born. It looked at what wasn’t working across the whole of the university, and heavily leveraged Gartner’s advisory services.

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Resources & Chemistry Precinct Building

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E D U C AT I O N

“There is some very interesting technology out there. It just has to align with our strategy and where we need to get to” – Chris Rasmussen, CIO

“Gartner has been really key to shape out the programme, especially their expertise in the higher education space,” Rasmussen says. “We don’t just read the research and look at the magic quadrants and those sorts of things. We actually talk to their analysts and then make an informed decision in what we’re going to do.” Digital Futures also employed someone with psychology skills to interview new students. ‘Stephanie’ was the result - a profile of a firstyear student showcasing ‘her’ first

4,160

Number of employees at Curtin University

17 weeks’ experience at Curtin. “It was a holistic experience, not just IT focused.” explains Rasmussen. “We wanted to

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CURTIN UNIVERSITY

Seque rest volorum aute velestio intem illibus es qui ut alit et, sita iuntur? Click here Electrical and Computing Engineering students approach it from the point of view, of ‘you’re a new student here, these are your first weeks, and, how is it? What are the touchpoints, what’s working for you? What’s not?”’ A biggie was the number of systems students used - around 10 they’d log into four-to-five times a day, so around 50 log ins daily. Troubleshooting this, Transforming Curtin IT Portfolio of Work was developed, building profiles not just for new students but second year students, researchers and general staff.

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One of the key projects that came out of that was the ‘Elsie’ app. A tribute to the wife of John Curtin, who was the Prime Minister of Australia in World War II and who the university is named after, it ties these log-ins and systems together. The IT team built it on two platforms, one for iPhone and one for Google Android, and it launched last year. Now, it’s got almost 100% utilisation with new students. “Students find it much easier to navigate a lot of what they need to do now,” Rasmussen


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explains, “like getting to classes on time, communicating, and logging in to the systems.” About 14 other projects made up this portfolio some for research, some for teaching and some for central areas -and at a cost of $48mn over four years, it’s the biggest non­capital works piece of work that’s ever been approved at the university. Running parallel to this, Rasmussen was also responsible for transforming Curtin IT Services (CITS), providing many new capabilities for efficient integration between applications. He also restructured the 300-strong team into four directorates: Operations & Projects, IT Planning Governance & Security, Architecture & Innovation and Service Delivery -with the four heads reporting to him directly. “Service Delivery is a bit of a misnomer,” he says, “but it oversees the services and makes sure the rest of the team is delivering services

Ian Callahan, COO the client is looking for. And it has a great procurement team. “When I started, we had a good contract management team but we weren’t managing the vendors like partners, and there weren’t any KPls to hold them to, so we’ve changed that and renegotiated a lot of agreements. The team has been very effective.” It certainly has - the Service Delivery team saved the university approximately $18mn last year, through strong negotiation and contract management. The CITS team also enlisted the help of consultant companies Braestone and DSBS, who also helped with planning and the

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coordination in the workshops the ago and the global IT leader recently university did around Digital Futures established its ninth innovation as a programme, as well as providing centre at the Perth campus with essential skills along the way. another partner, Woodside. “For example, even the “It’s a big feather in Curtin’s cap to development on the phones for have that here,” adds Rasmussen. the Elsie app was not a capability “We’ve had about 180 companies that we had before, so we come through that innovation started putting in a lot centre since it’s opened. of new capabilities “Cisco provides a other functionalities lot of the technical to make us more horsepower behind efficient and get it and some staffing better integration resources, and Number of students between systems,” Curtin provides at Curtin University he adds. the research and “We installed a academic brains. cloud-based industry “The commercial service bus tool for organisations come in and integration called MuleSoft. We they provide the problem and the are also reshaping the IT teams subject matter expertise. It’s like to get the right skills in place this little incubator, and by getting for when this starts delivering the three together it actually over the next few years.” puts you in a very powerful Curtin is a long-standing Cisco position to look at ways of customer and runs the biggest solving real-world problems.” wireless network in WA on a single He says the biggest site, in the southern hemisphere. challenge for IT is doing more The university forged a strategic with less money, and that’s partnership with Cisco two years another reason why partners

58,216

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like Gartner are so important, because they provide critical advice and guidance, while partnerships like the one with Tech Mahindra provide extra skills, giving the university the ability to scale and flex when needed to meet the business demands. “That’s part of the agility, about us not trying to be everything,” Rasmussen adds. “And from a team point of view, we’re getting skilled up in Design Thinking. JourneyOne is helping us with this. “With Design Thinking, you park

“Students find it much easier to navigate a lot of what they need to do now… like getting to classes on time, communicating, and logging in to the systems” – Chris Rasmussen, CIO

Science and Engineering student

Click here


CURTIN UNIVERSITY

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Cisco Internet of Everything Innovation Centre building

any solutions at the door. You walk into a room and you have a diverse mix of people in there - someone to lead the discussion, a solutionist who can look at ways of capturing a problem, and a mix of different people at different times. “The idea is to getto the core of the problem before you look at solutions, and we’re trying to build that into the DNA of how we operate.” For the next few years, Rasmussen will continue to work with all the stakeholders to shape and focus the digital strategy and spend, whether it’s an upgrade to a major system or new apps for students or research, to make sure it ends up on the agreed roadmap somewhere. “There are some immediate things we must do next year, just to keep the lights on,” he says, “but there is some very interesting technology out there. It just has to align with our strategy and where we need to get to.”

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grand slam The

GAME

Written by: John O’Hanlon Produced by: Justin Nelson


TENNIS AUSTRALIA

Craig Tiley, the CEO of Tennis Australia, in a rare interview, talks at large about his leadership approach, his vision for the organisation he heads, and the potential tennis has to capture the imagination of a new generation

W

hy does tennis fascinate? What lies behind its soaring popularity? Clearly it has a lot to do with the game’s gladiatorial nature; the spectacle of individual athletes contending for the big prizes and kudos of the top tournaments. At that level you could hardly call it a team sport, but as we have slowly begun to realise, star players only arise if there’s the right infrastructure - if children can get involved early on, and young people access good facilities and coaching. Craig Tiley doesn’t seem to mind that he never made the big time as a player, having been a bit long in the tooth when he started playing in his native South Africa – at just 12! “I had coaches that were very passionate about coaching and teaching and I learned as much about the passion as the

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technique,” he admits. “I was not a good enough tennis player to make a career of it but I didn’t mind that because I learned so many other things.” Well, you don’t get to captain the national Davis Cup team if you aren’t a mean player: that and the ‘other things’ he picked up about tennis are part of what makes him perhaps the highest profile leader in the sport today. The Australian Open, with its 112-year history, starts the tennis year with a bang in January. Tiley has been running this event as Tournament Director since 2007 and since 2013 has combined this with the role of CEO of Tennis Australia (TA), the national governing body for the sport comparable to the Lawn Tennis Association in the UK. His path has not involved filling in too many


SPORT

Cardio Tennis

application forms, something he puts down to three principles he has embraced: “First, remember you are going to meet the same people at different points in your career and theirs, so treat them as you have them treat you. Second, the easiest way to get something done is to work extremely hard at

it. Third, be persistent.” His habit is to form a mental picture of his goals – as coach of the University of Illinois University tennis team he pictured holding up the National Collegiate Athletic Association (NCAA) trophy and being called to the White House, both of which came to pass. Later on he

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was to receive the US National Coach of the Year award also. The picture that grew in his mind after he joined TA as Director of Tennis was visionary. “I saw an Australian Open that looked like one of the world’s best entertainment events as well as a major sporting event.” The kind of event that Disney might envisage, he thought. It’s not a textbook approach to management, but a logical one that has served him well, and that vision is what he has worked towards. Remember, he is persistent. “This job is one where you cannot work in the shadows. It is very open and transparent. People read and hear about the decisions you are making.” The stresses and the pressures of the job are accentuated because of its public nature. It helps that Australia is mad about tennis. Tennis is the number one participation sport there. The Open draws around 550 players with about 450 full-time staff and 9,000 part-time staff employed by TA during the Open. Globally, it

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is followed by more than a billion fans. A lot of bucks stop at the CEO’s desk. “I am proud that the Australian Open is considered the most successful and biggest sporting event in Australia, and is right up there globally.” It is increasingly considered the benchmark for other events, an achievement he puts down to extraordinary teamwork. “My job as a leader is putting a good multinational team together. I am truly proud of these people.” Transforming the Open Let’s look at the facts. In Tiley’s four years at the helm, TA’s revenues have more than doubled, from AU$150mn to more than $350mn. This accelerated growth was achieved partly, he admits, by unlocking much value that had been created in previous years, but most of it has been down to a bolder style. “We have taken some big risks because we knew there could be big rewards,” he says. The biggest risk was to reinvent the organisation. The first step


SPORT

was to buy back the broadcasting rights for the Australian Open from domestic media rights partner Channel 7. Now TA is the only one of the four Slam organisers to bring its broadcasting in-house. “We started to control end to end production of our content, so we could make decisions on how it was going to be distributed globally. That unlocked the potential of all our national and global media rights partners, because now we could customise that content very specifically to those markets, whether

language, who is playing, or time of play.” This at once allowed TA to optimise its financial return. The cost of the rights buyout was recouped inside of two years. International broadcasters were happy to pay TA handsomely to receive fully-customised content which they don’t have the luxury of getting anywhere else. With many businesses moving to outsource non-core activities, it’s a different model, but bringing expertise in-house allows TA to control and monetise media rights, sponsorship, supply rights and add

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value and innovation via entertainment. It goes further than insourcing – for example, an R&D centre has been set up to coordinate with all Australian universities on innovations that can boost the bottom line. Tiley, a ‘citizen of the world’ himself, has gone international to hire the best commercial, media rights and entertainment people. “I have specifically designed the leadership teams around a very international model. We have looked out rather than in.” The transformation of TA from being a tennis federation into a midsize ASX-listed business, which is not only a tennis business but also an entertainment business, is in full progress. With production and broadcasting brought under control, the way is open to bring in wider entertainment events focused on music, kids, and food. The last of these is a no brainer in Melbourne, which has a strong culinary culture. “We brought in some of the best chefs and the best restaurants and put them right on site,” Tiley says. “We know that if you add music you are going to draw a big market so we have become a music promoter, with 80-plus bands and acts.” Of course all

Craig Tiley, CEO Craig Tiley is recognised as one of Australia’s most innovative and forward thinking chief executives. His charismatic and passionate nature together with his business acumen has leveraged him to the forefront of sports administration and the leader behind Australia’s largest and most successful international sporting event. Tiley has been Tournament Director of the Australian Open since 2006 and was appointed CEO of Tennis Australia (TA) in 2013. His relationship with the playing group and relentless focus on improvement has transformed the Australian Open into the players’ favourite Grand Slam and Australia’s favourite sporting event, bringing 728,000 people through the gates annually, delivering more than AU$300mn in direct economic benefit to Australia and reaching a global audience of more than 350mn.

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“I have specifically DESIGNED THE LEADERSHIP TEAMS around a very international model” – Craig Tiley, CEO that can’t be done in-house, so music promoters are brought in. Delaware North has been delivering catering services since 2013, and companies like Nickelodeon and, yes, Disney, ensure that the entertainment is a fit for the younger fans. “We know that if we don’t introduce kids before the age of 15 to tennis they may never engage with it,” adds Tiley. The principal asset Rapid growth in revenues has allowed Tiley to increase headcount without breaching his vow never to increase the employment cost by more than 14% of total revenue. He’s seen too many top-heavy sports federations. With a diverse and multicultural workforce of around 450, he has a refreshing approach to maximising productivity and job satisfaction. Inclusion, diversity and equal opportunities are more than

buzzwords: Tiley is a global advocate for opportunities for women and ensuring inequity in pay and gender is brought to an end. “We are one of the few organisations outside the UN that has adopted the Women’s Economic Empowerment principles. The UN devised a test to monitor gender equity around pay, performance and opportunity. Tennis Australia was the pilot organisation in Australia and Southeast Asia, and we helped to get six or seven other organisations to join us in pilots.” Working conditions at TA are illuminating. In place of maternity leave both men and women may take time off and return to the same job. There are rewards for taking annual leave, as Tiley adds: “In Australia everyone gets four weeks’ leave. I want our people to take their leave and get a break, so if they take their four weeks within

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12 months they get an extra week.” One day a year the workplace stops and the time is devoted to health and wellbeing with dentists, skin and eye doctors coming on site and lectures and workshops on things like depression and stress. On top of that, there are generous bonuses for performance – needless to say a high proportion of staff qualify. Clock-watching is a thing of the past. Working from home is allowed in many circumstances - the organisation will pay set up and maintenance costs to equip the employee’s home with all the devices and connectivity to intranets and website business portals they need. A key aspect of this transformation is the growth of the popularity of the Australian Open overseas, particularly in China. Tiley explains: “To ensure that we fully embrace the opportunities of global growth we have opened up several international offices including in Europe and Hong Kong which will allow us to focus on engaging local markets and

forming strong strategic and commercial partnerships.” Growing the game This year there were no Australians left after the first week of Wimbledon, but Craig Tiley is not despondent. The tradition speaks for itself and that evening he was at the annual TA barbecue celebrating 30 years since Pat Cash took the title and 50 since John Newcombe’s success. “The challenge today is there are many more nations playing the sport

“I am proud that the AUSTRALIAN OPEN is considered the MOST SUCCESSFUL AND BIGGEST SPORTING EVENT IN AUSTRALIA, and is right up there globally” – Craig Tiley, CEO

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TENNIS AUSTRALIA

Tennis Australia Ann West - Head FitBit of Integrity and Compliance

Jacquie Mangan General Counsel

Anna Caple - General Manager Performance

Darren Pearce Director of Media and Communications

David Roberts - Chief Operating Officer

Paul Cammack - Director of Participation

Richard Heaselgrave Commercial Director

Tom Larner - Director of Events and Facilities


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and tennis is competing with many other activities for good talent. We have to do well in these events and provide the kids with aspiration to choose tennis as their sport. It is great non-contact exercise, highly social, attracts girls and boys alike. These are great values but we haven’t been very good at taking away the barriers. One of these is access to facilities and their cost. Second, the governance of tennis worldwide is very complicated. Third, I don’t think we are doing enough innovation. Those are three things we absolutely have to resolve or we’ll become

a sport of low participation and dwindling relevance.” Tennis is well behind when it comes to data capture and analysis. It needs to take lessons from retail and use technology to find out about its consumers and what they want, just as they do in the shopping Sport. “If we can do that we can adjust our programmes and products to suit them. We need to match today’s technology and behaviours so you can use your mobile phone to book a court, communicate with your partner, pay direct, show up and have the gate open for you.”

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In fact, both TA and the UK’s Lawn Tennis Association (LTA) have accessed technology that can do that through a company called SportLabs. 400 clubs in Australia trialled it last year, he says, and recorded an average 30% increase in revenues as a result The right equipment helps access too. “We have to look at balls and strings and racquets, and formats too. We can now have equipment to even it out so we can enjoy it better.” Rather like a golf handicap, he agrees, but achieved through modified equipment. A modified tennis format branded as Hot Shots is now played in 75% of Australian schools as part of their PE programme. It can be set up on any surface, and uses three types of ball and a choice of net and racquets geared to the player’s level. Around 3,000 Australian children are playing this variant of tennis, Tiley says, of whom many will progress to the competition game as they get older – though Hot Shots is very popular among adults too.

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Tiley is impatient to see less convoluted, more collaborative global governance in tennis, and does all he can to promote it. For now though, TA is developing as a benchmark for the rest. The Australian Open is different from the other Grand Slams in that its venue Melbourne Park is owned by the State of Victoria which invests in its development, with TA paying a percentage of revenues. It’s a good deal for the state as during the 20-year current agreement period from 2016 to 2036, it’s estimated that the economic impact will amount to more than $6bn. That makes the current investment of $1bn in redeveloping Melbourne Park very good value for the state - it has provided the site with three stadiums with retractable roofs, 50 tennis courts and a site that can manage 85,000 people a day. “We had a million people this year,” says Tiley. “We are building a new function centre, a new broadcast centre, a new player area that is under construction now and we are putting in another 5,000-seat court


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in the precinct.” An eight story administrative centre, Tennis HQ, has already been constructed as part of the current redevelopment that will complete in 2021. When he took on the top job at TA, Tiley sat down with his senior executives to set down the values of the organisation - the formula he had brought with him fitted perfectly: “Excellence: every time I do anything it has to be first class. Loyalty: to your cause and to each other. Teamwork: do it together as a team. Humility: keep your ego in check.” His coaching background was doubtless as

good a preparation for running a successful business as any MBA, he concludes. “In any leadership role your attitude should be that you can’t know everything, so surround yourself with people who know more than you do. My job is to provide them with a pathway so they can excel.”

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Business Chief - Australia  
Business Chief - Australia