Business Chief Europe Edition - July 2018

EUROPE EDITION JULY 2018 europe.businesschief.com

TOP 10

ADYEN

Ripping up the payment rulebook

LUXURY GOODS COMPANIES IN EUROPE

AB INBEV

RABEN GROUP

Reaching new heights in sustainability

Digitally transforming logistics

A trulytelecom digital operator DEUTSCHE TELEKOM’S AGILE APPROACH TO A NEW WAVE OF DIGITISATION

FOREWORD

igitisation is inevitable, it simply will happen, so it’s better that you take it in your own hands rather than let it happen to you passively.

That’s the informed judgement of Dr Kai-Ulrich Deissner, Chief Financial Technology Officer at leading German telco Deutsche Telekom and interviewee for this month’s lead feature in our July issue of Europe’s Business Chief.

As the company undergoes “the biggest network modernisation” in its history, Deissner gives an overview of its investment in the latest technologies and how it hopes to, in the long-run, benefit financially.

Elsewhere in our newest issue, we discover the secrets of Moneypenny, the UK-based, world-leading communications outsourcing company after Olivia Minnock enjoyed an exclusive chat with Commercial Director Joanna Swash.

Berlin is profiled in this month’s City Focus, with the German business hub attracting more entrepreneurs than ever, while our Top 10 lists the biggest luxury goods companies on the continent.

Finaly, our exclusive digital reports boast interviews with, on top of Deutsche Telekom, Adyen, Raben Group, Anheuser-Busch InBev, BTG, EvoBits and LOTTE Wedel – all involving in-depth discussions with top executives and industry experts.

We hope you enjoy this month’s offering – as ever, if you have any feedback, you can find us across social media: @Business_Chief.

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10

Deutsche

Telekom Where innovation

is mission critica

J U LY 2 0 1 8

al

TECHNOLOGY

11

WRITTEN BY

LAURA MULLAN PRODUCED BY

JAMES PEPPER

e u r o p e . b u s i n e s s c h i e f. c o m

DEUTSCHE TELECOM

Embarking on a digital journey to foster innovation, Deutsche Telekom is set to remain as Europe’s leading telecom operator aving established itself as one of the world’s leading telecommunication companies, Deutsche Telekom is set to ink a new chapter in its story as it embraces a new wave of digitisation.

No mean task, Dr. Kai-Ulrich Deissner, with his responsibilities as Chief Financial Officer of the newly found Board Area Technology & Innovation under Claudia Nemat, Board member Technology & Innovation, has a meaningful impact on this transformation.

Deissner is what they call in German a “colourful dog”. Not your usual finance officer, he has worked in many parts of the value chain and in three regions across Europe; product marketing, many years of

H

12

J U LY 2 0 1 8

sales and process engineering in the local German business, as well as several CFO roles mark his 14-year long career for Deutsche Telekom.

This diverse background extends to his private life: Deissner is as passionate about his job as he is about gaming (he is a level 40 PokemonGo player) and long-distance running.

He was initially trained as a journalist and studied American poetry at Cambridge university, before making his first professional steps in the dot-com bubble of the early 2000s.

“And where is the money – this was the leading question when the bubble burst”, he looks back, “and this is what has been guiding my professional behaviour ever since.”

Bringing both operational and financial experience to the fore,

TECHNOLOGY

“ We strategically see ourselves as the leading European telecom” — Kai-Ulrich Deissner Chief Financial Officer Technology

13

Deissner says that today digitisation is critical for the success of the company.

“Digitisation is inevitable. It will happen anyways, so it’s better to take it in your own hands rather than let it happen to you,” Deissner observes. “Any market player out there will tell you that digitisation is mission critical. You need to become faster and quicker e u r o p e . b u s i n e s s c h i e f. c o m

The best of a now in y

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DEUTSCHE TELECOM

“ Changing our network from traditional copper to fibre is a strategic investment for the future” — Kai-Ulrich Deissner Chief Financial Officer Technology

16

and more innovative to remain competitive by enabling accelerated digitisation for better customer experience.”

Deutsche Telekom’s commitment to digitisation is most visibly manifested

requires convergent networks

by the fact that it created a new board

that speak a single language: IP.

area called Technology and Innovation,

Especially Claudia Nemat’s team

clearly signalling the self-conception

is driving this convergence of

and importance of technological inge-

technology, IT and innovation at

nuity for the organisation.

Deutsche Telekom. This will

Convergence – the bundling of differ-

make the company faster and

ent network, communication and IT

more efficient. Convergence

technologies – was one of the major

allows to overcome technical

steps into digitisation. Customers want

limitations, making new, innova-

to be able to access their data quickly,

tive services possible.

anywhere and at any time. This J U LY 2 0 1 8

Deissner explains that, as

TECHNOLOGY

more rapid technological

strengthen innovation, to make it much

advancements have entered the

quicker and to deliver what we promise.”

fray, the borders between net-

Being fully committed to its technology

work technologies and

leadership attaining innovation leadership in

information technology are

networks and 5G, Deutsche Telekom recog-

quickly receding.

nises that its core asset is its leadership in 5G

“Historically separate divisions

and lightning-fast network. As the fundamen-

such as network technology (NT)

tal basis for this, the company is currently

and information technology (IT)

undergoing “a network modernisation of his-

are now converging as technol-

torical scale,” Deissner stresses. With his

ogy develops. Classical network

long-distance running experience, Deissner

technology and IT grow stronger

knows that in order to undergo this radical

together. Software Defined Net-

transformation, you need a long breath and

works are on the forefront,” he

endurance.

says. “To acknowledge that,

On top of this, the organisation is driving

we’ve combined network tech-

network expansion in Germany faster than

nology and information

any other company. Recently, just under 300

technology into one area to

new mobile base stations went into service in the region. In 2017, the company also installed 40,000 km of optical fibre in Germany alone, more than the entire length of the federal road network in the country.

To prepare for the rollout of 5G, Deissner says that Deutsche Telekom is overhauling its

e u r o p e . b u s i n e s s c h i e f. c o m

17

DEUTSCHE TELECOM

network to keep hold of its top-class

you actually see something on

position. “We strategically see our-

the street. With new technolo-

selves as the leading European

gies, we can accelerate this

telecom and, with that in mind, it is vital

process immensely, making us

that we keep our network updated,”

more efficient and decreasing

says Deissner.

our time to market.”

“Changing our network from tradi-

18

Digital transformations can

tional copper to fibre is a strategic

rack up huge expenses. At

investment for the future. For us it is

Deutsche Telekom, instead of

very clear if you want to be a leading

just looking at the amount that

European telecom, your core asset is

the company is investing, man-

your network, and that’s what you need

agement discussions centre on

to modernise and to keep it on top and

the impact on the top line and

innovate in the future.”

more and more on customer

New technologies certainly accelerate this network expansion.

experience.

“Expanding our technology

“Traditionally, any new network is rolled

leadership is exactly the right

out in a detailed way taking many dif-

impetus for delivering the tech-

ferent steps and a long time,” he

nology and network innovations

continues. “It can take months before

that the digital transformation

J U LY 2 0 1 8

TECHNOLOGY

needs. How well or poorly we deliver these

explains Deissner. “To

technology and network innovations will also

establish a unit that is

determine our bottom line, and thus the suc-

faster, more innovative,

cess of our company,” Claudia Nemat, Board

and more convergent, we

member Technology & Innovation, stressed

decided that we not only

as part of the Capital Markets Day in May

need to focus on how

2018.

much money we invest, but

Whilst this is a concept often adhered to in

also on what we get for

theory, Deissner is ensuring that it becomes

that. Often a complex task

an ingrained everyday practice so that

to do...”

Deutsche Telekom can forward its position in the market.

“Traditionally, the finance department

“In some cases, we’re looking at areas that are not traditionally measured

measures input, so we measure and control

in finance, like customer

how much money we invest but put equal

satisfaction. It’s been quite

attention to the ‘output’ controlling, so both

a journey for our finance

top line and customer experience KPIs,”

e u r o p e . b u s i n e s s c h i e f. c o m

19

embracing the intelligent era with the intentdriven network In 2018, Huawei launched the Intent-Driven Network solution. This solution enables the rollout of a digital twin world that connects physical infrastructure to business needs. The network is driven by customers’ business intents and service policies. With intelligence, simplicity, ultra-broadband capabilities, openness, and security in mind, Huawei will help build a network that puts user experience front and center.

Firstly, the Intent-Driven Network has the predictive analysis capability. Using big data and AI technologies, the network can predict network issues, proactively optimize network performance, and troubleshoot in advance.

The network can also perceive the service experience of every single user in real time. With self-learning capabilities, it can continuously improve its intelligence and ability to perceive network issues and user experience issues.

Secondly, the Intent-Driven Network is a simple network in terms of architecture, protocols, sites, and O&M, thus achieving full lifecycle automation and making the network more agile and efficient. This

helps improve the utilization of network resources and the flexibility of services.

Thirdly, the Intent-Driven Network introduces new ultra-broadband technologies to achieve massive number of connections, ultralow latency, and ultra-high bandwidth.

Fourthly, the Intent-Driven Network is always open and can be interconnected with various third-party platforms to build an open industry ecosystem.

Finally, the core of the Intent-Driven Network is security. By identifying security threats in advance, the Intent-Driven Network implements proactive defense to ensure network intelligence and automation.

The Intent-Driven Network will be integrated into various service scenarios and help carriers build solutions for future business scenarios.

In 2018, Huawei has launched a series of innovative solutions for agile private lines, 5G transport, premium broadband, and enterprise campuses. These new options will help carriers reshape their business models.

www.huawei.com

TECHNOLOGY

“ Digitisation is inevitable. It will happen anyways, so it’s better to take it in your own hands rather than let it happen to you.

Any market player out there will tell you that digitisation is mission critical” — Kai-Ulrich Deissner Chief Financial Officer Technology

21

team because while it’s still doing the

financial logic isn’t just driving results in

practical things of providing clear num-

the company’s finance department but

bers and proper accounting, it’s also

has impact on further operations within

about establishing financial logic to

the company.

measure our return on investment and productivity.”

Deissner adds that it’s been quite a

“By bundling all our activities, it is also helping us use our resources to tackle some of the more challenging

challenge to lead traditional finance

number work as well. This means we

people to look more into the business

can spend less time producing reports

and acting as collaborative business

and more time on interpreting the

partners focusing on market and cus-

meaning of numbers, which enables us

tomer needs.

to support the business by providing a

As Chief Financial Officer for the

broad end-to-end thinking, combining

Technology & Innovation board area,

financial, commercial and operative

Deissner is aware that this sense of

concerns for our business partners.” e u r o p e . b u s i n e s s c h i e f. c o m

DEUTSCHE TELECOM

22

Whilst cost efficiency is a vital

“You cannot reap all the benefits

aspect of this transformation story,

of digitisation if you are only focus-

it seems that, at the crux of it,

ing on costs,” Deissner explains.

Deutsche Telekom is focused on

“We think of technology as neces-

innovation and market impact.

sary not just for enabling

As a result, digitisation is not just

efficiencies, but for enabling innova-

changing the back-end functions,

tion that provides new products and

it’s also transforming the customer

sources of revenue.

experience and providing new avenues of revenue.

J U LY 2 0 1 8

“Let me give you a few examples for efficiencies. One is the way you

TECHNOLOGY

Deutsche Telekom is represented in more than 50 countries worldwide

build fibre: Traditionally you manu-

“Another one comes from our call

ally plan the roll out of your network

centres, where we are using artificial

in many detailed process steps. It

intelligent voice agents to answer

takes a long time, before you actu-

customer complaints. In most of our

ally see something on the street.

internal processes we’re using

Now, with new technologies we can

those technologies to be more effi-

accelerate this planning process

cient while the key driver remains to

immensely, which is something that

be successful on the market.�

makes us more efficient and will help us being on the market quicker.

By all accounts, this has been a mammoth transformation for e u r o p e . b u s i n e s s c h i e f. c o m

23

DEUTSCHE TELECOM

24

Deutsche Telekom which has

transformation and we’re satisfied

stretched across all departments

with the results so far. However, we

but none of this would be possible

need further steps to progress even

without the right culture to foster

more,” Deissner explains.

ingenuity.

Today’s movers and shakers must

“One of the things that we’ve seen is that if we want to differentiate in

be agile and innovative. The right cul-

the market, there needs to be a cul-

ture is necessary to determine a

tural transformation underlying all of

successful digital transformation.

this,” notes Deissner. “In previous

Deutsche Telekom is promoting new

years, we have seen siloed thinking,

ways of thinking to foster this culture.

whereby people have thought only

“We’ve developed what you could

within the confines of their organisa-

call a ‘truly’ balanced scorecard

tional units rather than thinking about

where we’re looking at the financial

the benefit of the whole company. It

results, the delivery of new technol-

leads to more internal progress but

ogies, the operations, and the

less external progress, and so cul-

J U LY 2 0 1 8

TECHNOLOGY

Deutsche Telekom has a revenue of €74.9bn work flexibly in projects, less hierarchical. In IT, we started a programme called ‘IT@Motion’, which is a bottom-up program for the reorganisation of our IT division.”

“The motivation behind the restructuring is to give more power to employees and the creators throughout the company. Innovation is not limited to the board; it’s not limited tural transformation will be key.”

“To make this cultural transformation real at Technology &

to any department. It’s a mindset rather than an organisation.”

Innovation runs deep at Deutsche

Innovation, we massively invest in

Telekom and with savvy financial think-

enabling our employees to work

ing to back it up, it seems the German

in a more agile and cross-func-

telecom is ready for any hurdle that

tional way where suitable. This

comes its way.

includes structural adjustments, trainings and new working methods and tools,” he explains. “In the area of innovation for instance, we start into a pool organisation, the so-called Innovation Hub, where people can e u r o p e . b u s i n e s s c h i e f. c o m

25

LEADERSHIP

BRILLIANT HUMANS: WRIT TEN BY

28

OLIVIA MINNOCK

J U LY 2 0 1 8

THE FACE O BUSIN

T

:

B R I L L I A N T H U M A N S : T H E FA C E O F B U S I N E S S

Amid technology transformation, the outsourcing industry continues to grow. Joanna Swash, Commercial Director at Moneypenny, explains the importance of retaining a human element and being a trustworthy partner

“

OF NESS

You’ve probably spoken to us, you just don’t know it.” Joanna Swash is keen to emphasise the almost invisible impact Moneypenny has on the lives of customers and businesses every day. As a communications outsourcing company, the UK-based firm handles calls and queries for businesses as a ‘best kept secret’, looking after clients in the same way a firm would from its own office.

It was Swash’s own experience as a busy entrepreneur that made her see the value in Moneypenny. Having run a small business with one assistant to take calls, she applied for a sales role at Moneypenny. “I totally understood

e u r o p e . b u s i n e s s c h i e f. c o m

29

LEADERSHIP

why clients needed that level of support with their phone calls.”

Indeed, Moneypenny caters for businesses of every size at various levels, from entrepreneurs who need calls answered one day a week to MNCs with an overflow of enquiries.

“They might use us to save money, because they’re shrinking or because they’re growing,” says Swash.

In 14 years Swash has moved from sales to marketing and now acts as Commercial Director. In that time, the company has grown from just 25 staff to over 470, handling about 12,000 clients from its brand-new office in 30

Wrexham, UK. “It’s almost a different business every six months,” Swash observes, “because we’re changing with the market.”

A TRUSTED PARTNER Through rapid growth, consistency is key: “We’re doing more of the same thing – we know our customers and walk in their shoes. We offer a range of products and services we know will be useful to them on a daily basis,” she explains, “but there’s no doubt our offering has changed immensely – we’re always trying to stay ahead of new technology and make sure we can be a partner that clients can trust to deliver innovation alongside them.”

A trusting, personal relationship is vital.

J U LY 2 0 1 8

B R I L L I A N T H U M A N S : T H E FA C E O F B U S I N E S S

“They’re giving us the key to their front door,” Swash explains.

Moneypenny, whether though answering calls or live chats, is in charge of first impressions and looks after a company’s most vital asset: customers. “It’s important

“ WE’RE VERY CONSCIOUS THAT WE STAY THINKING LIKE A SMALL BUSINESS, RATHER THAN A NAMELESS, FACELESS ORGANISATION” Joanna Swash Commercial Director at Moneypenny

we understand what they actually want. We’ve got to think like a sole trader who needs telephone support once a week as well as a Magic Circle law firm. From efficiency and technology to supporting their existing staff, our bespoke service is tailored to every individual client.”

The process is consultative, and often Moneypenny makes suggestions to improve efficiency, even if this means a client actually outsources less – in the long run, it’s all about developing a positive relationship with the client. “At the end of a two-week trial, we might notice a client is getting a lot of calls on a certain afternoon and advise them to amend their staffing patterns as such. That’s business intelligence they didn’t have access to before, which adds a lot of value.”

e u r o p e . b u s i n e s s c h i e f. c o m

31

LEADERSHIP

HUMAN TOUCH In the outsourcing industry, finding the right faces and voices is paramount. “Moneypenny is about amazing people, empowered by ground-breaking technology,” says Swash. “There will always be a need for brilliant humans. As technology gets smarter, the expectation of the consumer is that tech has to be 32

absolutely perfect… but similarly, where technology fails or lacks, the humans backing it up have to be the most amazing humans possible. I think that’s the future and that’s why Moneypenny is so well placed.”

As an established business, having come fourth in the Sunday Times Top 100 Companies to Work For, the company has no trouble accessing brilliant humans. In the past 12 months, 3,000 CVs have been sent in pro-

J U LY 2 0 1 8

B R I L L I A N T H U M A N S : T H E FA C E O F B U S I N E S S

33

actively. “We can cherry-pick the

space, The Middle, and various social

best people in the area, a lot of

areas like the Dog and Bone pub.

whom are recommended by existing staff,” says Swash.

A key criteria of ‘brilliance’? Willing-

Moneypenny has “the antithesis of a closed-desk policy”, with staff encouraged to decorate their work-

ness to help. “We want people who

space. “This is your home. Create it.

come to work to do the right thing for

If people feel secure, comfortable,

others. We want smiley people. Ulti-

relaxed, wanted and needed, that’s

mately, we’re promising clients the

when we get the best work,” Swash

right person to represent them.”

explains. The new office was

Once employed, Moneypenny strives

opened by Prince Charles last year,

to retain and motivate staff, as shown

who toured the facility, met each

by a new £15mn office. The state-of-

member of staff and even listened

the-art facility is flexible, allowing staff

in on a phone call. Swash describes

to congregate or disperse as their

this as a highlight for herself

role demands. It includes a central

and for the company. e u r o p e . b u s i n e s s c h i e f. c o m

LEADERSHIP

“We’re very conscious that we stay thinking like a small business, rather than a nameless, faceless organisation. From a leadership perspective, one of the most important things is creating an environment of trust where it’s OK for someone to say ‘I don’t know’ or ‘I need help’, and it’s up to the whole team to help that person. In hindsight, I wouldn’t have had an office,” Swash reflects, “and as it stands my door is never shut. I often go 34

into The Middle and chat with whoever goes by, find out things that are going on.”

Having a quiet, peaceful and happy environment is important from the clients’ perspective too.

“We’d hate to think of ourselves as a call centre,” says Swash.

“Our clients don’t want their calls answered in a noisy environment.

We look after calls and live chats just as if we’re based in their office. We’re a well-kept secret for our clients.”

J U LY 2 0 1 8

B R I L L I A N T H U M A N S : T H E FA C E O F B U S I N E S S

KEEPING UP The march of technology is unavoidable, and as Swash puts it, “the whole world of communication is changing”. However, Moneypenny sees this as an opportunity, working alongside the likes of Microsoft and IBM Watson to make sure its technology is up to scratch. “It means we’re ahead of the game, but also allows our clients to access to that level of technology too.

Without us as a partner, that wouldn’t happen.”

Even as millennials reportedly balk at the idea of making a phonecall, Swash argues that telephone services are still rapidly expanding. “We still experience high growth with calls and I think that’s because businesses are working differently – they might not need an in-house receptionist any more.

Live chat is also huge. We’re seeing enormous growth and I believe the vast majority of businesses haven’t yet cottoned on to just how valuable a tool it is.

e u r o p e . b u s i n e s s c h i e f. c o m

35

LEADERSHIP

“For example, about 75% of our chats are proactive chats. On

A key challenge will be estab-

websites, maybe 25% of people

lishing the Moneypenny brand in

make an enquiry, but 75% of the

a relatively new market. “At our

accounts we handle have our

Charleston, South Carolina base,

people saying ‘Hello, can I help?’,

we don’t yet have the joys of

which provides a human element

thousands of CVs waiting for us,

and starts a conversation. For

but we’ve created an amazing

law firms, around 40% of their

office environment over there too,

chats are new enquiries. It’s

with the same feeling,” Swash

potential business for them.”

says, adding that Prince

As well as keeping up with the

36

stratospheric growth in the US.”

Charles’s UK visit was lives-

latest technology and retaining

treamed to the US location so

the trust of clients large and small,

overseas employees felt more

Moneypenny is establishing itself

connected with headquarters.

overseas, having set up a US

“We’ve got a really great develop-

office in 2015. “There’s nobody

ment team, which is growing.

else in the US market place with

Our knowledge and relationships

our business model, which offers

with tech providers are growing.

clients one person they know

We’re always looking at what

and trust,” Swash explains. “The

we can learn and bring to this

next few years is about both con-

particular industry, and the

tinued growth in the UK and

future is really exciting.”

“ MONEYPENNY IS ABOUT AMAZING PEOPLE, EMPOWERED

BY GROUND-BREAKING TECHNOLOGY” Joanna Swash Commercial Director at Moneypenny

J U LY 2 0 1 8

B R I L L I A N T H U M A N S : T H E FA C E O F B U S I N E S S

37

e u r o p e . b u s i n e s s c h i e f. c o m

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

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

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

– Murat Ungun, Senior VP Supply Chain Kudu Corp

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TECHNOLOGY

Cyber solutions WRIT TEN BY

OLIVIA MINNOCK

to cybercrime

With data breaches highly publicised and ransomware threats on the up, Business Chief caught up with software company EQUIIS to find the solution

J U LY 2 0 1 8

e u r o p e . b u s i n e s s c h i e f. c o m

TECHNOLOGY

W

ith the cost of cybercrime to business in 2016 estimated at $500bn in lost revenue, and this figure

expected to increase by over $2trn by 2019, businesses both public and private are still struggling to implement secure communication. EQUIIS CEO Derek Roga is adamant more needs to be done to offer economical and intuitive solutions.

EQUIIS provides enterprises with a range of secure communications solutions so that from oil and gas companies to law firms, businesses can communicate securely and efficiently with each other and with clients, protected against the ever-increasing

“The idea was dangers of cybercrime and ransomware. to provide an With a recent report from NTT Security having revealed one third of global business decieasy-to-integrate sion makers prefer to risk ransomware platform that demands rather than investing in cybersecucould provide rity, despite attacks having increased by the enterprise 350% in 2017 alone, it’s no surprise there are with a tool to so many issues with keeping data secure and communicate that EQUIIS is growing exponentially in a presecurely” viously neglected space.

— Derek Roga, CEO EQUIIS

Derek Roga, a tech entrepreneur with 25

years’ experience, previously worked in the telecom software space, working with Blackberry before founding EMS in Dubai in 2005, which involved “taking the Blackberry solu-

J U LY 2 0 1 8

tion to the marketplace through

go out on his own in the space and founded

mobile operators”. Within three

EQUIIS to assure clients with similar needs of

years, EMS became Blackberry’s

a secure, compliant communication method.

largest partner, representing 18%

Speaking to Business Chief, Roga was

of the company’s global sales

joined by Joe Boyle, CEO and co-founder of

and working with 105 mobile

SaltDNA, who started working closely with

operators worldwide.

Roga when the businesses formed a tech-

Roga went on to work with

nology partnership in 2017. Previously,

clients in the intelligence com-

Belfast-educated Boyle had worked for Irish-

munity. “They had a need to

based startups as well as Ericsson. “After

understand what type of com-

a number of years working in telecoms, I made

munications took place where

a switch to work in enterprise networking.” In

and if there was anything surrep-

2013, he founded SaltDNA, which was largely

titious they could identify.” Thus,

focused on “giving enterprises solutions for

in 2016, Roga was well-placed to

securer, compliant managed communication”. e u r o p e . b u s i n e s s c h i e f. c o m

TECHNOLOGY

Together, both entrepreneurs’ experience helped fill the cybersecurity gap. “What drove us to start the business was that over the past

“ A lot of organisations are grappling with how to do the most to ensure cybersecurity solutions are implemented with the least amount of investment” — Derek Roga, CEO EQUIIS

several years there had been a significant uptick in cybercrime,” says Roga. “It’s a significant issue being faced by entrepreneurs. The idea was to provide an easyto-integrate platform that could provide the enterprise with a tool to communicate securely: secure messages, calls and file transfer, and being able to spontaneously have conference calls in a secure manner, regardless of where the team was in the world.”

J U LY 2 0 1 8

EQUIIS also offers the option

explains: “the administrator controls who has

to burn messages at both ends

access, who is communicating with them,

once read in case a device

how they are communicating and where they

becomes vulnerable.

are communicating from, ensuring the integrity of the platform.”

SECURE MARKETS

“The reason clients choose us,” Boyle adds,

EQUIIS’s closed communication

“is really that control and management of

network gives clients two options

closed user groups. Being able to do secure

to communicate. “We have our

conference calls within their own network,

own cloud network where we

not having to trust anyone else, is a key

host the solution. An enterprise

requirement for these large organisations

subscribes and we give them a

and government bodies that can’t afford to

portal through which they can

take any risks.”

manage their subscribers. It’s in

Key markets for EQUIIS include the oil and

our secure network and they can

gas industry, and the business is now grow-

deploy it across their whole

ing in the legal and government sector.

enterprise really quickly.” The

“A number of law firms use our solution,” says

second way is an on-premise

Roga. “In some cases, law firms are man-

solution which affords the client

dated to ensure the protection and integrity

organisation complete control.

of their attorney-client privilege communica-

“We take the infrastructure we’ve

tions, so they use our solution to accomplish

developed and replicate that in

that.” In terms of government, particular areas

the client’s own network.”

include police, military and intelligence organ-

How does EQUIIS’s offering

isations. “They are required, or have their own

differ from a consumer-facing

mandate, to ensure they’re getting the best of

communication service? “The

the best in regards to technology, and that the

WhatsApps and Vibers of the

solution they implement has the highest of

world enable somewhat secure

security built around it. Over the last two

communications but are not

quarters we’ve had some significant wins with

made for enterprise,” says Roga.

government agencies.”

With EQUIIS’s solution, he

In addition, business in the healthcare and e u r o p e . b u s i n e s s c h i e f. c o m

TECHNOLOGY

finance sectors is picking up.

seconds so they can use the

“We offer something unique in

solution. It’s intuitive; there’s not

this space: the ability to be com-

much training required and this

pliant, particularly around

can then broaden to a wider

regulatory requirements. In the

group of users. It’s an elegant

financial services industry,

way for us to build rapport

there’s a requirement that every

and relationships.”

transaction and communication be recorded and kept for

OPEN SOURCING SAFETY

future reference.”

In addition, Roga feels use of

A key added value for clients is

open-source software assures

the assurance of compliance and

users the solution is safe. “What

safety when using EQUIIS’ solu-

we have is not proprietary tech-

tion. “Clients are looking for a

nology. We use open-source

partnership,” Roga explains,

encryption: it’s tried, tested and

“And if the partner and the people

validated. Frankly, when you start

representing it can really empa-

touting proprietary solutions in

thise and understand their

the market, two things happen:

challenges, and provide real

there isn’t enough user experi-

world solutions, not hypothetical

ence to validate the technology,

ones, it becomes a partnership.”

and secondly you are opening

A consultative process also helps assure customers the solution suits their needs. “We can get a test group running within

yourself up for people to try to be the first to hack it.”

“We don’t see ourselves as cryptographers,” Boyle explains.

“ We can get the latest encryption techn then wrap up the management, cont and compliance around these techn — Joe Boyle, CEO and co-founder of SaltDNA

J U LY 2 0 1 8

hnology and trol, visibility nologies� e u r o p e . b u s i n e s s c h i e f. c o m

TECHNOLOGY

“We take the latest and greatest encryp-

nitely something we see as becoming

tion technology and if something better

more and more important across organi-

comes along, it’s about a three to four-

sations and sectors. Our technology

week process to upgrade. We’ve done

should definitely be something anyone

that four times in five years. What makes

who has a trusted engagement with a

us different is that we can get the latest

client where they are dealing with sensi-

encryption technology and then wrap up tive information should leverage.” the management, control, visibility and

Echoing the NTT study, Roga empha-

compliance around these technologies

sises how little organisations are willing

to make it something an enterprise can

to spend on cybersecurity, even in 2018.

easily buy, because we tick all the boxes.” “If I’m a corporation, and I’m going to With data breaches these days widely invest say $10mn in a marketing campublicised, Boyle argues “the vast

paign for example, I can see my return

majority” of businesses and indeed cus-

on investment (RoI) in a very tangible

tomers are unaware of potential dangers way. It can be measured and quantified. and how much data isn’t encrypted.

Whereas if I take the same $10mn and

“There’s a level of apathy. But it’s defi-

invest in cybersecurity, that RoI is intan-

$500bn

revenue lost from cybercrime in 2016 J U LY 2 0 1 8

gible. A lot of organisations are

America lots of people send voice

grappling with how to do the most

clips. Not only does this allow you to

to ensure cybersecurity solutions

have an asynchronous conversation

are implemented with the least

with someone, but it is actually highly

amount of investment.

compliant as you can keep a record of

“We come in offering a very elegant solution giving peace of mind that one

things as they progress.”

In addition to voice notes, Roga

part of the issue is covered – and

adds: “From a technology perspective

covered economically.”

we’re always innovating. Our service is significantly enhanced: we’re bringing

LOOKING AHEAD

in video conferencing and communica-

An area of increasing important for the

tion… A lot of the enhancements

future will be voice clips, says Boyle.

we implement come from direct

“A lot of organisations on the consumer

interaction with our customers and

side are sending voice clips and voice

understanding the landscape we

notes. It’s catching on more in the UK,

exist in. That’s going to happen

and in Asia and North and South

continuously.”

e u r o p e . b u s i n e s s c h i e f. c o m

VISIT OUR WEBSITE

R E A D T H E L AT E S T I S S U E

CONSTRUCTION TECHNOLOGY FORUM 2018

25-26 SEPTEMBER 2018, ADDRESS HOTEL DUBAI MARINA

Supporting Partners

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Tel: +971 4 365 9918

Email: events@venturesconnect.net

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Mention code BC-1 to receive 15% off your delegate pass For sponsorship opportunities contact sponsorship@venturesconnect.net

CITY FOCUS

Berli

THE NEW EUROPE

J U LY 2 0 1 8

EDITED BY

OLIVIA MINNOCK

in

PEAN BUSINESS HUB

With insight from a global business leader, we have taken a look at Berlin’s recent development and why it is attracting workers and entrepreneurs from around the world

e u r o p e . b u s i n e s s c h i e f. c o m

CITY FOCUS

In recent years, Berlin has proved itself as a city overcoming problems and climbing to new heights of influence, both at home and on the world stage, with a bright future ahead.The German capital has a steadily growing population that is now approaching four million and is the country’s largest city as well as the second-most populous in the EU.

56

THE APPEAL OF MODERN BERLIN

Fernsehturm Berlin, is considered the

Berlin's foreign population is immense,

country's greenest metropolis, and it

second only in Germany to Ham-

also is home to three UNESCO World

burg, with more than 190 different

Heritage Sites.

countries represented among the

Berlin is a popular city for visitors, but

621,000 registered foreign residents.

it is also very much a working city, both

Only one in four local residents today is

in terms of governmental and private

a born and bred Berliner. In some ways, business. Among German cities, howthe city represents a clash of cultures.

ever, it is not the most prosperous with

About half the population is single, or at disposable income lower than the least not married in a traditional way.

national average. On the flip side, how-

Berliners love music and celebrations:

ever, living in Berlin costs less than in

three major opera houses compete for

other European capitals or other Ger-

attention with late-night clubs, noisy

man cities. Rent, food and recreation

beer halls, and the world’s largest beer

are more reasonable than in other large

garden. The city's bridges outnumber

cities. Particularly for students, the cost

those in Venice, and it boasts more

of living is affordable, and the quality of

water than Venice, Stockholm and

education is high. The city consistently

Amsterdam together. The modern city,

earns high marks for educational excel-

home to Germany's tallest structure,

lence, especially in the sciences.

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BERLIN

57

e u r o p e . b u s i n e s s c h i e f. c o m

CITY FOCUS

FIELDS OF EMPLOYMENT In 2017, based on EU assessments, the main sources of employment in Berlin fell into the major areas of real estate; professional, scientific and technical services; retail and wholesale trade; motor vehicle maintenance and repair; and social work and residential care.

In addition, Berlin’s location in Northern Europe is ideal for supplying goods and services to the rest of the continent and beyond.

Since Berlin’s reunification in 1990, the intervening decades have brought 58

many changes. Berlin’s story is one of job growth: a young population and an eager, well-trained work force is prepared to fill the many positions that are created annually to service a growing population.

The city faces some uncommon problems associated with its international population, but vocational and technical schools do an admirable job of preparing many students for success in business and industry. The unemployment rate, however, reached 9.6% in 2017, and even though that number was a full percentage point below the previous year, it is still substantially higher than the rest of Germany.

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BERLIN

Spreadshirt A GLOBAL BUSINESS

Spreadshirt is a global print company that was founded in Germany and retains an important hub in Berlin, despite having expanded across Europe and into the US. We asked CEO Philip Rooke why he things Berlin is the place to do business.

Why do businesses thrive in Berlin?

“As a whole, Germany is an easy place to do business on an international scale. In particular, Berlin has great talent, is cost-effective and is becoming the new business hub of Europe. Since Berlin is already a major city, and Brexit has affected the world view on London’s role in the EU market, Berlin has become attracted to talent. Many people are travelling from all over the world to Berlin, who used to travel to London. In addition, the cost of living for that talent and the cost of rent and other services for business are much cheaper. This environment makes the city a number one choice for startups.”

Why is Berlin an important hub for Spreadshirt?

“Some of our key talent (including myself) lives in Berlin, and while we are headquartered in Leipzig, Berlin was

the place we were more able to set up our pan-European marketing and sales, due to the more international base of the workforce. We also just love the vibe of the capital city.”

Tell us about the spirit of entrepreneurship in Berlin.

“Berlin is a vigorous, cultural and creative city. It was like London and San Francisco 15-20 years ago. So many new companies are starting here every day, and some are now growing to an international scale and reaching the stock market, such as global food business Lieferheld. For a capital city, Berlin offers a higher standard of living at a relatively low cost, and as it’s smaller than some European capitals, it’s easier to connect with people. It’s full of talent and exploding with ideas.

“All in all, people and businesses come to Berlin for the everyday incentives of culture, talent, cost, and frankly, to be where the other entrepreneurial companies are.”

Philip Rooke CEO Spreadshirt

e u r o p e . b u s i n e s s c h i e f. c o m

59

CITY FOCUS

GLOBAL EDUCATION OFFERING More than 180,000 students were enrolled in Berlin's institutions of higher learning during the 2016/2017 school year, with foreign students accounting for nearly 20% of the total.

The city's four universities, scientific institutions, art colleges and institutes, along with more than a score of state-recognised private institutions, are highly competitive and sought after. In addition, there are more than 70 research institutes that are not affiliated with universities. The availability of partnerships with other global institutions is high, and a high percentage of students in Germany are from China, the United States and

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TRANSPORT AND MOBILITY

Russia. Annually, Berlin invests approxi-

The most important sector in

mately €1.5bn ($1.75bn) in its educational

Berlin is transport – but it’s not

institutions in an effort to maintain programs

just about Rolls Royce, Volk-

and quality instruction.

swagen and Mercedes-Benz, as important as they are to the economy. Sustainabilityfocused electromobility, as well as aerospace, are key to the continued growth and health of transportation-related firms. The city is also a global force for logistics and telematics services, and a leading centre for rail technology and intelligent transport systems.

J U LY 2 0 1 8

BERLIN

4population mn of Berlin

FAMILY MATTERS A family friendly lifestyle, with an emphasis on childcare and early childhood development, including universal all-day primary schools, is the norm in Berlin. In addition, there is a multitude of recreational opportunity, leisuretime activity and diversified sporting events. Social welfare infrastructure targets a high quality of life and an excellent public transportation system makes access to amenities easy for residents. Family support services and child advocacy programmes seek to improve the social well-being of all, old and young, native residents and new arrivals.

Berlin is a distinctive city in many ways. While it is still in a growth and development mode, it recognises its unique challenges and has taken positive steps to address them. The fact that it is the capital of the country means that the world's eyes will continue to be trained on the city.

So far, it has responded in an exemplary manner. e u r o p e . b u s i n e s s c h i e f. c o m

61

@ServAptNews #SASEU

1 0 - 1 1 J U LY, L O N D O N , U K

PA R K P LA Z A , V I C TO R I A

D I SCOVER T H E ‘HOT TEST ’ S E CTO R O F HO S P I TA LITY The Serviced Apartment Summit Europe offers unbelievable content without the corporate fuss.

Hear from leading industry speakers and panellists on topics everyone is talking about whilst meeting great new contacts, in a relaxed environment.

This year’s event will see: London’s hottest serviced apartment venues in our neighbourhood tour Optional Yoga workout (flexibility not required) Prosecco workshop sessions Topical debates eg. Brexit: London v other gateway cities International suppliers who advise, not sell Prize draw including international stays

DON’T MISS OUT on the largest gathering of serviced apartment, extended stay / aparthotel and short term rental leaders in Europe.

Grab one of our remaining tickets online at servicedapartmentsummit.com.

WE LIKE TO DO THINGS DIFFERENT, CHALLENGING THE STATUS QUO. S PO N S O R S A N D M E D I A PA RT N E R S

H O S TE D BY

POW E RE D BY

The 2018 Serviced Apartment Summit Europe is set to be the biggest and best in the event's six year history. Taking place at the Park Plaza Victoria in London on July 10 and 11, the Summit has quickly established itself as the premier gathering for networking and educational opportunities in the serviced apartment and extended stay sectors.

The 350+ international attendees will enjoy all of the elements which have gone to make the Summit such a success, including a tour of local serviced apartment, hospitality and F&B concepts; a speed business card swap; networking cocktail reception; and a packed conference agenda with an international cast of industry leading speakers. Sessions will cover subjects including a market performance review and outlook, distribution, investment and technology. A busy exhibition area will see nearly 30 leading operators and suppliers on hand to demonstrate their latest goods and services, generating a real buzz and facilitating plenty of new business.

But not content to rest on our laurels, we have added a range of fresh innovations to the Summit. New for 2018, we have teamed up with Buying Business Travel to offer a bespoke half-day Travel Buyer Forum, with a debate-style agenda for corporate travel bookers, buyers and executive assistants.

The new content stream has been introduced to help travel buyers who are looking to to understand and introduce serviced apartments, extended stay hotels, aparthotels and short-term rentals into their travel programme, as well as providing further insights for those who have already incorporated serviced

apartments and are keen to learn more.

Topics for the travel buyer forum will include distribution, guest experience and how to extract best value from a regional, national and global apartment programme.

Another new addition for 2018 is a series of interactive round tables, which will see the audience broken down in to smaller groups, led by experts in their field, to share their knowledge and experience of a range of topics including preparing your business for a sale, marketing to Chinese guests, energy savings, driving awareness of the industry, short-term rentals, branded residences and more.

Oh, and did we mention we are kicking the conference off with a 30-minute yoga session?

Speakers at the Summit include leading representatives from BridgeStreet, StayCity, Cheval Residences, Oakwood Worldwide, Brera, Nomad Aparthotels, Adagio Aparthotels, Staybridge Suites, Forenom, Yays, STR, RMS, Maxxton, Expedia, Katten Law, Cotels, AIG, Severnside Consulting, PwC, Brookfield, YourWelcome, Cuckooz, GBI AG and Vision Apartments.

For sponsorship, exhibtion and speaker information about Serviced Apartment Summit Europe 2018 please email info@servicedapartmentsummit. com or call +44 (0)208 340 7989.

To see the full agenda and to buy tickets visit www.servicedapartmentsummit.com

T O P 10

64

Top 10 luxury goods companies in Europ We took a look at Deloitte’s Global Powers of Luxury Goods list to find out which European luxury companies and their high-end brands made the top 10 WRIT TEN BY

OLIVIA MINNOCK

J U LY 2 0 1 8

65

ope

e u r o p e . b u s i n e s s c h i e f. c o m

T O P 10

09

Michael Kors Holdings Ltd

10

Prada Group 66

Italian fashion house Prada owns much more than the name suggests, also controlling the Miu Miu, Church’s and Car Shoe brands. The company was ranked at 17th globally by Deloitte, which put its revenue as a luxury goods provider at $3.92bn. Prada boasts over 12,000 employees who work across 70 countries. The company is best known for its speciality handbags, shoes and ready-towear clothing lines as well as perfumes and other accessories. Founded in 1913

by Mario Prada, the company originally sold animal goods and luggage imported from England, before being taken over

by Prada’s granddaughter at which point it began selling its own fashion items.

J U LY 2 0 1 8

Overall, Michael Kors comes in at 14th on Deloitte’s list. Unlike most other luxury companies on the list, the UKbased business has kept to its own brands: Michael Kors and MICHAEL

by Michael Kors. Deloitte puts its revenue at just over $4.7bn. The company was established by the designer of the same name in 1981, and produces a range of clothing, accessories, jewellery, eyewear and fragrances. The firm has over 550 stores as well as over 1,500 in-store presences around the world. In July 2017, Michael Kors purchased Jimmy Choo Ltd for $1.2bn.

07

Rolex SA

08

Hermès International SCA

With $5.7bn revenue according to Deloitte and a global 11th ranking, Switzerland-based Rolex owns both the Rolex and Tudor brands, with the latter being produced by its subsidiary Montres Tudor SA. The Swiss luxury watchmaker works end to end across design, manufacturing, distribution and after-sales service. Forbes ranks Rolex at 64 on its list of the world’s most powerful brands. Rolex produces around 2,000 watches per day. The Rolex brand dates back as far as 1905.

The Hermès International company is based in Paris, France and owns the luxury Hermès and John Lobb brands. Established as far back as 1837, the company creates and sells a range of leather items, perfume, jewellery, watches and clothing. Thanks to its $5.4bn revenue, the company is ranked at 12 globally according to Deloitte. As a whole, the Hermès Group employs around 13,500 people and has 304 exclusive| stores around the world, 212 of which it operates directly. e u r o p e . b u s i n e s s c h i e f. c o m

67

T O P 10

05

The Swatch Group Ltd

06

L’Oréal Luxe 68

Coming in at seventh overall on the global Deloittle list, L’Oréal Luxe owns Lancôme, Biotherm, Helena Rubinstein, Urban Decay and Kiehl’s as well as licensed brands. Deloitte states L’Oréal Luxe’s overall revenue to be $8.03bn.

The ‘Luxe’ business is a division of the wider L’Oréal Group alongside the Active Cosmetics division (including brands like Vichy and La Roche-Posay), Consumer Products (including Garnier, Essie and Maybelline New York), and the Professional Products Division which supplies salons around the world.

As a whole, the Group owns 34 beauty brands and employs over 82,000 people, boasting almost 500 registered patents to date.

J U LY 2 0 1 8

The famous Swiss watchmaker ranks at six globally and manufactures for licensed brands as well as owning Omega, Longines, Breguet, Harry Winston, Rado and Blancpain. The luxury company’s revenue is put at $8.8bn. Founded 1983 by Nicolas G Hayek, grew out of the merger of Swiss watch companies ASUAG and SSIH. Initially, ‘swatch’ was a contraction of ‘second watch’ as the company made disposable accessories, but the household name has since taken on a decidedly luxury slant with some of the brands it owns.

03

Luxottica Group SPA

04

Kering SA Globally, Kering SA ranks fifth on the Deloitte list with a total revenue of $12.87bn. The company owns a variety

Eyewear company Luxottica encompasses several popular luxury brands including Ray-Ban, Oakley, Vogue Eyewear, Persol and Oliver Peoples as well as manufacturing for various licensed brands. The Italian company has a revenue of $11.26bn according to Deloitte, which ranks it at fourth globally. Based in Milan, Luxottica is involved in all aspects of the eyewear under its brands, from design, manufacturing and distribution to retail. In 2017, the company merged with Essilor.

of luxury brands including Gucci, Bottega Veneta, Saint Laurent, Balenciaga, Brioni, Sergio Rossi, Pomellato, GirardPerregaux and Ulysse Nardin. Kering is based in France and its brands encompass fashion, leather goods, jewellery and watchmaking. The group employs about 29,000 people in total. Kering was created in 1963 by Franรงois Pinault who founded it as a wood and building materials business. It entered the distribution business in the 1990s and became a luxury company in 1999 with the acquisition of Gucci. e u r o p e . b u s i n e s s c h i e f. c o m

69

T O P 10

70

02

Compagnie Financière Richemont SA Both second on our list and globally according to Deloitte, with a recorded $12.32bn in revenue, Swiss-based Richemont owns the famous Cartier, as well as Van Cleef & Arpels, MontJ U LY 2 0 1 8

blanc, Jaeger-LeCoultre, Vacheron, Constantin, IWC, Plaget, ChloĂŠ and Officine Panerai. The business is based in Switzerland and acts as a holding company for its luxury brands, having been founded in 1988. Altogether, its brands are involved in the design, manufacturing and distribution of their variety of luxury products.

71

01

LVMH Moët Hennery Louis Vuitton SE The biggest luxury brand company both in Europe and the top ranked by Deloitte, LVMH Moët Hennery Louis Vuitton is more commonly known as LVMH and was founded in 1987 when Louis Vuitton merged with

Moët Hennessy (which itself was a merger between champagne maker Moët & Chandon and cognac maker Hennessy). Based in France, the company now not only owns these luxury brands but also Fendi, Bulgari, Loro Piana, Emilio Pucci, Acqua di Parma, Donna Karan, Loewe, Marc Jacobs, TAG Heuer and Benefit Cosmetics. This luxury giant’s revenue on the Deloitte list comes in far above the rest, at $39.62bn. e u r o p e . b u s i n e s s c h i e f. c o m

ADDING VALUE OF DIVERSITY & INCLUSION IN SUPPLY CHAINS THE UK’S LARGEST SUPPLIER DIVERSITY CONFERENCE For over 10 years, MSDUK have been dedicated to improving diversity in entrepreneurship and driving inclusive procurement. We believe that supplier diversity is an economic and moral imperative. Innovation comes from a diversity of perspectives, so when we limit who can contribute, we in turn limit what problems we can solve.

Diversity within supply chains can not only bring new ideas and solutions to any organisation, but it also brings competitiveness, and boosts market growth. Beyond these commercial benefits, there is the BIG social value supplier diversity brings - reducing socio-economic inequality and creating stronger, more stable communities.

MSDUK welcomes a global audience to the 2018 Conference & Awards in Birmingham. The twoday event is a must-attend conference for Ethnic Minority Businesses (EMBs) and Corporations looking to drive inclusive procurement and connect with diverse like-minded businessmen and women. Join our conference of diverse entrepreneurs, supply chain leaders, thinkers and doers and realise the power of differences.

HIGHLIGHTS • Full Day Business Exhibition with break-out meet the buyer and silent workshops by industry experts.

• Knowledge Forum with stimulating panel sessions, fire-side chat with inspiring entrepreneurs and interactive workshops around supplier diversity and business growth.

• Eagerly awaited finale of MSDUK 2018 Innovation Challenge bringing 10 most innovative entrepreneurs pitching their ideas to investors and supply chain experts • Glittering Business Awards night celebrating supply chain diversity and best of ethnic minority businesses combined with food and entertainment from all across the world proactively look for ways to bring different voices to our team and into our decisions.

Join over 600 delegates from all across the world, including Chief Procurement Offices, senior sourcing professionals, global diversity and inclusion leaders, policy makers, academics and hundreds of inspiring, innovative and successful ethnic minority entrepreneurs!

FIND OUT MORE AND REGISTER AT CONFERENCE.MSDUK.ORG.UK

INNOVATION | KNOWLEDGE | PROCUREMENT | BENCHMARKING BIRMINGHAM 25-26 SEPTEMBER

ADYEN

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TECHNOLOGY

Adyen has witnessed exponential growth over the last four years and has recently launched its IPO in Amsterdam. Jussi Lindberg, SVP of Business Development in Northern Europe, tells us more WRITTEN BY

CATHERINE STURMAN

PRODUCED BY

JAMES PEPPER

e u r o p e . b u s i n e s s c h i e f. c o m

75

ADYEN

T

he payment service provider (PSP) market is booming. Mass globalisation has led consumers to demand access to products and services

with the ability to pay across a number of different channels at the click of a button.

Tackling the challenges that businesses experience within this space is Adyen. Partnering with a number of popular streaming services, such as Facebook, Spotify, Netflix, and more, its integrated platform enables payments to be undertaken through any channel and processed on a single platform. Such has been the relentlessness of the company’s growth, its processed volume growth has risen from €12bn ($14bn) on an annual basis to a stagger76

ing €108bn ($125bn) in 2017. Shares have also surged up to 90% upon the launch of its IPO in Europe.

Four years previously, Senior Vice President of Business Development, Northern Europe, Jussi Lindberg, wanted to gain a greater understanding of how Adyen was setting itself apart from other payment providers.

“When working at PayPal, Adyen was a partner that had the fastest growth ever when it came to the PSP space. I had to know what the secret sauce was. Why were they giving so much volume to us at PayPal? After working a bit more closely with Adyen I found the company was really something extraordinary,” he explains.

“Adyen was building something more quickly than anybody else, but at the same time helping businesses globally scale in a different manner than anyone had been doing previously.”

Shortly after, Lindberg joined the company in 2014.

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TECHNOLOGY

‘What is Adyen?’ Jussi Lindberg, SVP of Business Development explains 77

OUTSTANDING COLLABORATION Working with businesses as a payments partner, Adyen seeks to collaborate with them to plan how they can successfully scale.

“Businesses want to take the next future step to sell anywhere, at any time, via any channel to anyone globally. So, the world is shrinking,” says Lindberg.

“We’re also seeing consolidation in the types of vendors. Beforehand, the payment space

Adyen helps maintain the balance between blocking fraudsters and approving genuine shoppers

was very fragmented, where you had one gateway or payment method per country that you had to contract. If merchants were selling in 40 different countries, that equates to 120 e u r o p e . b u s i n e s s c h i e f. c o m

OMNICHANNEL. REDEFINED. Enable AfterPay and allow your consumers to pay frictionless in any touch point you want. One off transactions, consolidated or subscription based transactions, it’s all up to you. *The image above is a conceptual sketch.

WILL YOUR BRAND BE RUN OVER BY A SELF-DRIVEN CAR? How can a self-driving car affect my brand you might wonder? And it’s a valid question.

The answer lies in how everything changes when we move from the driver’s seat to the passenger seat.

No. This level of experience effectively hides all transactions, invisible payments, and to some extent the service providers as well. That can sound pretty scary in a world where the biggest struggle is to not just be seen – but remembered.

Not like the commuting of today – with people going from one place to another with occasional stops in

There is a solution, though. Pay After Delivery, PAD.

between – but in an AI powered vehicle that is perfectly aware of your interests, schedule and needs.

What started as a consumer need driven by skepticism about online purchases, and then evolved to a pre-filled

“That can sound pretty scary in a world where the biggest struggle is to not just be seen – but remembered” Imagine an ordinary day, you leave your home and get into ‘your’ car. You sit down and get into prepping your day at the office, in the car that is fitted to support focused working. Then your car stops by Starbucks and rolls down your window. The staff hand you your freshly made morning coffee, just as you like it. The car rolls away as you finish off the last of your prep as you sip your coffee looking out the window.

After work the car picks you up again. As you summarize the day the car quietly stops by the grocery store, and a bag with your home essentials is placed in the trunk.

Finally, you are home, work done, shopping done and a nice evening with your family lies ahead.

mobile first conversion driver. Pay After Delivery is now entering its third phase of relevance thanks to its perfect fit for consolidating invisible payments and support for subscription based business models.

In addition, it brings with it a new platform for merchants to promote brand awareness and loyalty: the post purchase experience. This gives you as a merchant extraordinary exposure to the consumers’ eye, where others are invisible.

Whether it’s the coffee in your car, in a shop or your intelligent washing machine ordering a detergent refill, Pay After Delivery is a payment method that will increase in relevance the more your business addresses the omnichannel challenges. No expiring cards. No 3D Secure validation. No obstacles, and your brand stands out.

Can you afford not to employ a PAD service?

Does it sound like science fiction? Really? Remember back in 2006 – before the iPhone was launched – if I had told you that the phone would be the most important platform for shopping…?

Today major car companies are partnering up with merchants to provide all of the above and more.

Business models are changing. Consolidation and Subscription is the name of the game. So what does this have to do with your brand? Well, did you note any passages saying “and then you leaned out the window to pay”?

Patrik Vikner Head of User Experience – AfterPay

ADYEN

“ When working at PayPal, Adyen was a partner that had the fastest growth ever when it came to the PSP space. I had to know what the secret sauce was” — JUSSI LINDBERG, Senior Vice President of Business Development, Northern Europe

80

different vendor relations, technical connections, and also reporting lines.

“This is just not feasible as nobody

mentation,” he continues.

“Whilst the world is getting smaller at one end, local initiatives offering

has the bandwidth to take this on, espe-

new ways to pay are continuing to pop

cially in the payment space,” he adds.

up. Today, I’m based in Sweden and,

“Companies want to be focusing on

for instance, have four or five payment

increasing net promoter scores; ensur-

methods that we have to integrate at

ing conversions go up and be more in

Adyen instead of our customers hav-

tune to what they are actually doing,

ing to do this.

which is taking care of customers

“New regulations are also coming up

instead of vendor relations. This is where

so the world is still fragmented, making

we’re seeing tremendous growth.

it important for us to be a partner where

“Thirdly, we are seeing something contradictory, which is more fragJ U LY 2 0 1 8

we have control and give the best advice to our customers and partners.”

trustly.com

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ADYEN

“After working COMPLEX REGULATIONS a bit more closely with Adyen I found the company was really something extraordinary”

Building a new, state-of-the-art infrastructure, any type of transaction placed through Adyen’s platform is highly secure, but unusually, is not sent to a third party. Instead, the business sends this directly to the required payment method and receives an immediate response back.

Through this, Adyen has gained improved authorisation rates against its competitors.

82

­­ — JUSSI LINDBERG, Senior Vice President of Business Development, Northern Europe

“We can also process pay-

ments in store on the same, single platform. From a technical standpoint, our solution is quite

Adyen have partnered with streaming giants such as Spotify

complex but we’re making it easy on the customer and partner side,” explains Lindberg.

Additionally, with General Data Protection Regulations (GDPR) coming into force across Europe, Lindberg explains that whilst the company is fully up and running and is set to adhere to the vast changes to traditional regulatory requirements, the business will remain challenged.

“We are GDPR ready and will

J U LY 2 0 1 8

TECHNOLOGY

FACT

• Adyen has partnered with a number of popular streaming services, such as Facebook, Spotify and Netflix • Adyen’s integrated platform enables payments to be undertaken through a single platform.

• Adyen’s processed volume growth has risen from €12bn

($14bn) on an annual basis to a staggering €108bn ($125bn) in 2017 • Shares have surged up to 90% upon the launch of its IPO in Europe • Adyen is backed by Index Ventures and Silicon Valley giant Iconiq Capital • Adyen has recently launched its IPO in the Netherlands

• Adyen offers every payment method available in China, such as WeChat Pay and Alipay outside of the country, in order to cater to its specific target audience • Adyen uses data and machine learning in its payment routing, optimising authorisation rates 83

take full responsibility on what is

we only have to do it once per region

put on us as a company at our

because we have a single platform.

end. Then, of course, it is up to

For them, they have to do it over

any company that we are also

and over again, which slows our

partnering with to do their part as

competition down.”

well,” he says.

“We are also Payment Service

ENTERING NEW MARKETS

Directive 2 (PSD2) ready. If we are

Providing popular music juggernaut

talking about payments and what

Spotify with a payment processing

is happening in the payment space,

platform for its premiums business,

there are a lot of acquisitions, which

Adyen has fully supported the firm

also house multiple platforms to

to scale and enter new markets.

send payment data through.

With a number of different payment

“Whilst it’s trickier for competi-

details, varying music catalogues

tion to be PSD2 and GDPR ready,

and rights dependent on each coune u r o p e . b u s i n e s s c h i e f. c o m

ADYEN

try in which it serves, Adyen has strived to ensure that premium users can only tap into the catalogues relating to the country where the card (and user) resides.

The business also caters to companies which have complex regulations to deal with. China, for instance, is a particular focus and houses a unique payments market. With this in mind, Adyen offers several Chinese payment methods, such as WeChat Pay 84

and Alipay outside of the country, in order to cater to this specific target audience.

“No business without a local or offer Chinese payment methods.

Adyen and other payment vendors cannot sell or target Chinese companies. On the other hand, we can help Chinese companies that want to sell outside of China, such as in the US, with this payment method,” says Lindberg.

SUPPORTING COMPANIES TO SCALE Whilst more and more companies are wanting to be on top of their payment data, Adyen’s platform J U LY 2 0 1 8

TECHNOLOGY

create better, more personalised customer journeys such as click-and-collect, where customers can order something online and pick it up in store, or endless aisles, where in-store tablets let shoppers order items that are out of stock online while in store. A Unified Commerce approach allows retailers to reshape the purchase experience, making it frictionless.

Adyen also aims to simplify and improve the payments experience on the merchant side.

Jussi Lindberg, Senior Vice President of Business Development at ADYEN on Market Pay

Adyen MarketPay, a solution for large marketplaces, simplifies the flow of payments, providing split payouts, easier reporting, driving a complete frictionless experience for both vendors and end-customers.

“There is complexity with not only accepting

will provide a better payment

a payment, but sometimes splitting a payment

experience. Its technology has

between multiple sellers. With more than one

also worked to support retailers

vendor, transactions need to be split evenly, and

such as Daniel Wellington as well

sometimes sellers also have different commis-

as ride-hailing company Uber.

sion plans,” explains Lindberg.

Most importantly, delivering

“Before, transactions had to be initiated

simplification for its customers,

not only once, but twice to make sure that

particularly within the physical

this transactional split was happening.

point of sale (POS) space means

Today, we can completely automate this

that Adyen has a unique Unified

with our MarketPay API solution.”

Commerce offering. By having

Such solutions are therefore in significant

e-commerce and in-store pay-

demand for big consumer-driven companies

ments processed through one

such as Etsy or eBay, where payment systems

platform, companies are able to

are becoming increasingly complex. Whilst e u r o p e . b u s i n e s s c h i e f. c o m

85

ADYEN

86

“We’re seeing consolidation in the types of vendors.

Beforehand, the payment space was very fragmented, where you had one gateway or payment method per country that you had to contract. If merchants were selling in 40 different countries, that equates to 120 different vendor relations, technical connections, but also reporting lines” ­­ — JUSSI LINDBERG, Senior Vice President of Business Development, Northern Europe

J U LY 2 0 1 8

TECHNOLOGY

there might be multiple sellers in one trans-

BIO

action trying to sell an item purchased by

Jussi Lindberg is the SVP of Business Development Northern Europe at Adyen, the payments platform behind many of the world’s leading companies such as Uber, Netflix, Spotify and eBay. Jussi was previously responsible for partnerships and financial products at PayPal and Ebay, with over 15 years of experience of partnering with hundreds of companies to achieve growth and digital performance. Jussi holds a Master of Science in Business Administration and Economist from UMA.

a consumer, upon completion, merchants then submit the relevant consumer details.

“This is unique to Adyen and that’s what’s really driving the market solution and appealing to merchants,” Lindberg says. “There’s no exclusivity, so we can replicate these solutions to other vendors.”

Furthermore, to bolster its efforts to reduce potential risks, Adyen uses data and machine learning in its payment routing, optimising authorisation rates.

“It’s not only a machine learning tool, it’s also how we interpret the different types of risks that we are associating with different types of transactions,” adds Lindberg.

“With just one state-of-the-art platform, we can check transactions once, and then once it gets back from the payment team we also check it again. This supports enterprise merchants who want to be gathering more data and be cross-linking transactions that occur.

“They can then detect patterns of crosslinking different multiple email accounts and different cards,” he continues.

“If they’ve been associated with card washing, for example, in seconds we can see thousands of transactions with a stolen card number. We can efficiently block this,

e u r o p e . b u s i n e s s c h i e f. c o m

87

ADYEN

but if we can also show this in a graphical way, this is something deeply appreciated.”

Nonetheless, he adds that checking what could be a real transaction against ones which are fraudulent, remains a challenge.

“It’s a tricky threshold, but as we’re partnering with our customers more closely we’re getting more insights. It’s about analysing all payment methods, not gathering them. We can have better risk tools and better risk analysis per country and per business vertical where they are selling.”

88

Partnering with some of the largest retailers and enterprise clients globally, Adyen has grown alongside its customers, becoming a key factor to their success.

“We have great technology and we’re very

So, I think our journey is still just

fun to work with. From the start, we set out

beginning. Looking at the physi-

ambitious goals to solve global businesses’

cal point of sales space, there’s

needs to simplify any type of sales channel,

still so much to do and so many

wherever they might be present. We have

store initiatives that we are fortu-

gained extensive payment knowledge from

nate enough to be building out

different regions in every office where we’re

together with our customers. It’s

represented today and have local experts in

going to be really fun to see what

these areas,” concludes Lindberg.

the future brings.”

“We can provide so many payment methods in just one integration but the work is still not done. The world is not covered.

There’s no need that is 100% fully met.

J U LY 2 0 1 8

TECHNOLOGY

2006

Year founded

668

Number of employees

89

Adyen’s Senior Vice President of Business Development on TRENDS in the Payment World

e u r o p e . b u s i n e s s c h i e f. c o m

RABEN GROUP

90

J U LY 2 0 1 8

S U P P LY C H A I N

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WRITTEN BY

BEN MOUNCER PRODUCED BY

LEWIS VAUGHAN

e u r o p e . b u s i n e s s c h i e f. c o m

RABEN GROUP

The Raben Group is in the midst of a company wide digital transformation, led

by CIO Slawomir Pawlak wenty years measures as an infinitesimally small period of time in the history of mankind but when it comes to technology, the last two decades will go down as an era of extraordinary significance.

Throughout this transformative journey from an analogue past to a digital now, Slawomir Pawlak – Chief Information Officer at the pan-European logistics giant Raben Group – has been in the eye of the storm, a first-hand witness to a rapid shift from one comfortable landscape to an inherently different other.

Pawlak, who this year will reach his 20th anniversary as the Dutch firm’s technology leader, has embraced this monumental change with open arms and a sharp mind.

This adaptability has rewarded him with the authority to steer digital transformation at a €1bn company, an ambition that would have seemed impossible in the days when ‘IT’ was placed firmly in the back office.

“That's amazing perspective, isn't it? I've been here 20 years, in IT at Raben Group,” he recalls. “In 19 of those years I have been in

T

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J U LY 2 0 1 8

S U P P LY C H A I N

93

e u r o p e . b u s i n e s s c h i e f. c o m

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S U P P LY C H A I N

the leading position and during

now, to the point where it is powering

that time I might have changed,

change.”

95

once or twice, all of our systems

Raben Group’s history stretches to long

in Raben Group to new systems

before Pawlak’s time at the company. A mar-

or new versions and new

ket leader in Europe for over 85 years, its

releases.

efficient and dependable service has

“As the technology has grown,

afforded it the reputation as one of the conti-

so has the company. Twenty

nent’s outstanding logistics and warehousing

years ago, we had roughly 500

providers.

people in in the group in two

Pawlak’s remit in 2018 is to lead technol-

countries. Right now, we have

ogy integration in every area of its

10,000 people in 12 countries.

established business; primarily flowing inno-

We had €50mn of revenues back

vative digital infrastructure through its

then and right now we have more

logistics and warehousing operations but

than €1bn. Through company

also exploring how technology can help

growth and technological

Raben Group face the widening range of

change, IT became more and

challenges presented to a multinational

more important to where we are

organisation in the 21st century. e u r o p e . b u s i n e s s c h i e f. c o m

RABEN GROUP

SLICK LOGISTICS With the deployment of over 8,000 modern means of transport to carry cargo across 12 countries from Italy to Lithuania, an optimised tracking function is of paramount importance to Raben Group. Pawlak has overseen the amalgam of technological solutions to meet that demand, creating a service that guarantees ‘mobility and visibility’ for its customers.

Delivered in partnership with 96

BlueJay Solutions, the business has adopted a single transport management system that connects its operations through one stream, giving it the required transparency. This information is shared to customers via its MyRaben.com portal, launched under Pawlak’s stewardship in 2015 and powered by Mendix, a low-code platform which enables the simplified management and development of in-house applications.

“The flow of information across Raben Group and between countries really is fast J U LY 2 0 1 8

S U P P LY C H A I N

“ Twenty years ago, we had roughly 500 people in the group in two countries.

Right now, we have 10,000 people in 12 countries” — Slawomir Pawlak Chief Information Officer

97

e u r o p e . b u s i n e s s c h i e f. c o m

Our traffic and logistics software help customers in over 120 countries around the world to optimise the movement of people and goods.

Discover how we can help you build the present, to create a better future, ptv.to/mobilitylab

ptv.to/contactus

S U P P LY C H A I N

and very accurate,” explains Pawlak. “Using

Drivers input the information

BlueJay’s software, we're transferring infor-

on mobile terminals through a

mation about transporters’ cargo and

sophisticated application devel-

transporters’ documents really quickly. We

oped by TIS GmbH, the German

present that internally and externally on

telematics provider of logistics

MyRaben, where our customers can see sta-

software. Raben Group, which

tuses, can see documents, can see invoices

has also struck a deal with Pana-

in spite of the location of the cargo.

sonic for the supply of

“This is a really good solution with good

heavy-duty hardware suitable for

performance. Right now, we are migrating

use in transportation, sees thou-

this platform from one cloud to another and

sands of data touch points

on completion of this migration, there will be

across its fleet every day.

the option of automatic scalability of the

This presents a challenge for

infrastructure. This gives me the option to

Pawlak which is a very familiar

grow to offer more services on this platform.”

one for CIOs today – how do you

Slawomir Pawlak - CIO e u r o p e . b u s i n e s s c h i e f. c o m

99

RABEN GROUP

“ A day might not seem like a long time, but if a product only has a shelf life of seven to ten days, then it’s a significant percentage, so the system and delivery have to be 100% right” — Slawomir Pawlak Chief Information Officer

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S U P P LY C H A I N

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make first make sense of that data, then how do you turn it into action points that will make a difference?

“We are collecting a lot of information from the truck,” he says. “We also have onboard computers that are providing a lot of information about the engine, about the brakes, about the oil and about the pressure. On top of that, you can see how the driver steers the wheel and how they use the brakes.

“Data comes from many devices and many applications. At this moment, we are collect-

Video: Raben Group Company overview

ing some of it, but not all of it, in our data warehouse. One key improvement that in front of us is using that data to power predictive analytics. e u r o p e . b u s i n e s s c h i e f. c o m

RABEN GROUP

“We're building some profiles already; the

and outside of Europe. That is

behaviour of customers, the risk of traffic

certainly one of our strengths.

jams or changing the routes of the trucks, all

“We would also consider food

based on historical data. But this is still only

to be a real specialism of ours,

a pilot. Based on information we're already

which is really strictly controlled.

collecting we can build more and more effec-

We have a company called Fresh

tive way of making deliveries and we have

Logistics that is dedicated to the

made investment in this area, but we’re

food logistics, so that’s the sup-

probably still one or two years away.”

ply chain, temperature control, storage, etc. We have to be really

102

WAREHOUSING FIT FOR THE FUTURE

efficient because a lot of food

Raben Group boasts more than 1,150,000

has quite a short product life. A

m2 of diversified warehousing space, which

day might not seem like a long

are adjusted to suit specific requirements.

time, but if a product only has a

Some 83 of its warehouses are designed for

shelf life of seven to 10 days,

food and non-food products, ADR goods,

then it’s a significant percentage,

goods from the automotive sector, electron-

so the system and delivery have

ics (white goods) and oils. The company has

to be 100% right.”

stated that long-term, the objective is to

In the short-term, Pawlak says

implement the RedPrairie software (a JDA

the business and, indeed, the

product) at all its locations

industry faces two-real chal-

On the organisation’s warehousing opera-

lenges – the ongoing effort to

tions, Pawlak says: “Flexibility is hugely

recruit the right talent and adher-

important; we have to be able to control our

ing to new legislation. But with a

warehouses and be able to accommodate a

richly experienced team backed

wide variety of goods. So, for example, we

by a $1bn organisation, Raben

take big consignments of motorbikes from

Group is in a great

BMW in Berlin directly into our warehouses

position to continue to thrive in

and distribute them to customers both inside

the logistics space.

J U LY 2 0 1 8

S U P P LY C H A I N

Video: Raben Group On the Way

103

e u r o p e . b u s i n e s s c h i e f. c o m

Sustaina sourcing for

world of to

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WRIT TEN BY

DALE BENTON PRODUCED BY

RICHARD DURRANT J U LY 2 0 1 8

ably r the

omorrow

e u r o p e . b u s i n e s s c h i e f. c o m

105

ANHEUSER-BUSCH INBEV

AB InBev has launched its most ambitious sustainability goals in its 650-year history as it bids to create a better world today, and tomorrow B InBev is without a doubt the world’s largest brewer.

With an incredibly diverse global footprint, spanning the Americas, Europe, Africa and Asia Pacific, AB InBev produces the biggest brands in beer. Budweiser, Corona, Stella Artois, these are but a few of the biggest, and arguably most influential, beer brands in the world.

But being the number one brewer is not the only measure of success for the company. The company was founded with a dream, a dream of bringing people together for a better world.

It delivers on this vision by investing into every step of the value chain. From the farmers and the retailers, right through to entrepreneurs and commu-

A

106

J U LY 2 0 1 8

nities that the company serves, AB InBev well and truly goes above and beyond.

As a company that brews the best beers in the world, it needs to source the best ingredients in a safe and sustainable way and it does so through an unwavering commitment to sustainable best practice.

Overseeing the company’s sustainability and procurement drive throughout Europe is Richard White, Vice President of Procurement and Sustainability Europe.

Having worked with AB InBev for nearly 17 years, White has seen first-hand the company’s exceptional growth as well as

FOOD & DRINK

“ We cannot even begin to try and deliver these goals on our own,” he says. “We need to work with our suppliers, our private and public partners if we want to achieve them. They are extremely stretching goals and that collaboration is crucial.”

– Richard White, Vice President of Procurement and Sustainability (Europe)

more recently, the amplification of

an internal focus. Over the last six to 12

its sustainability agenda.

months we decided as a team to stretch those

“The bottom line is, we’re a

goals further and it comes down to one, clear

beer company and a brewer. We

vision. We want to continue operating as a

brew our beers using four key,

company for the next 100 years and beyond.”

natural ingredients from the land,

As part of this increased focus on sustain-

so there is an inherent link

ability, AB InBev created its “2025

between sustainability and sourc-

Sustainability Goals.” As White noted, AB

ing those ingredients,” he says.

InBev has always focused heavily on sustain-

“We’ve always had sustainability goals, but predominantly from

ability, but as a company that has successfully delivered on its sustainability e u r o p e . b u s i n e s s c h i e f. c o m

107

Making an impact on recycling James Piper, managing director of recycling compliance scheme Ecosurety gives his thoughts about how brands can make a positive impact on recycling and explains why they are an essential partner to AB InBev.

In the UK we have compliance schemes to ensure that producers’ recycling responsibilities are met.

Brands often pay considerable amounts to offset their environmental obligations, but have no idea if (or how) this money is making a positive difference.

Ecosurety is a compliance scheme committed to making a positive and tangible change for UK recycling and the global environment. How? By capturing more materials from consumers and helping them to recycle more, as well as ensuring that materials are actually recycled at the end of the process.

Our work

Our partnership with AB InBev As a key partner of AB InBev, we ensure that they achieve their environment responsibilities and obligations in the UK. We have helped them focus on initiatives that increase material capture and routes for recycling, and are helping them on their journey to sustainability.

For instance we have run a series of school workshops with one of AB InBev’s metal can manufacturers in order to help educate the younger generation about the importance of recycling.

From creating high profile consumer awareness campaigns, to funding solutions to recycle the un-recyclable, we help major brands to comply with environmental legislation and align this regulatory need with the need for the UK to recycle more.

For example, in 2017 we launched our #BringBackHeavyMetal campaign with an environmental charity in order to encourage the nation to look at battery recycling in a new, fun way, achieving a 64% increase in battery recycling and changing consumer behaviour as a result.

In addition, we have also backed an industry led effort to increase plastic recycling, especially in regards to black plastic trays which cannot always be detected by optical sorting equipment at recycling facilities.

Over the next few years, we will also be looking to increase our focus to ensure that glass is captured and recycled, as well as build essential UK partnerships to collect and recycle more glass and metals. We believe that consumer brands like AB InBev can, and should play a decisive role in improving recycling rates in the UK and abroad.

To find out more about Ecosurety and the work that we do, visit our website: www.ecosurety.com

FOOD & DRINK

ambitions for more than a decade its new goals for 2025 has been dubbed the “most ambitious goals yet.”

The 2025 goals can be broken up into four key areas, Smart Agriculture, Water Stewardship, Circular Packaging and Climate Action. For White, the only way the company can even begin to achieve and actually deliver on these goals is by leveraging its brands and more importantly, leveraging its brand connection points with its consumers.

109

This is where procurement plays a key role.

“Historically, procurement has been seen as a cost-quality focused function,” he says. “But over the years, particularly here at AB InBev it’s definitely grown

supply chain function will have

and become much more of an

on delivering these goals.

innovation and sustainability function.”

As the main touch point

With a supplier base exceeding 10,000 suppliers and farmers across Europe alone, AB InBev will have to work much closer and

between the company and its

more collaboratively with these suppliers in

supply base, across its entire

order to truly achieve its goals.

global footprint, it becomes

White agrees as much, citing that with the

clear just how much of an inte-

most ambitious goals in the company’s his-

gral role the procurement and

tory, it cannot complete them alone. e u r o p e . b u s i n e s s c h i e f. c o m

ANHEUSER-BUSCH INBEV

“We cannot even begin to try and deliver these goals on our own,” he says. “We need to work with our suppliers, our private and public partners if we want to achieve them. They are extremely stretching goals and collaboration is crucial.”

With an increasing responsibility on the touch points throughout the supply chain, AB InBev is mapping opportunities across its supplier network. This exercise represents a journey towards defining those key metrics it’ll use to allow its current suppliers, and poten110

tial future suppliers, to see that AB InBev walks the walk and invests in future growth.

AB InBev truly sees sustainability as

essence, the ultimate guiding principle

not simply related to its business, but as

while carefully described performance

its business. As was the case for the

indicators drive meaningful evaluation.

environmental goals to which AB InBev

“Inherently, as a brewer we need to

committed in the 2012-2017 period, all

make sure that what’s coming into the

its sustainability initiatives both inside

business is sourced sustainably,” he says.

and outside its walls will be comprehen-

“What goes in needs to be right and so

sively measured, tracked and

too does what goes out to our consumer.

benchmarked for improvement.

We set a number of targets and our sup-

White emphasises that the metrics

ply-relationship management programs

behind each initiative are designed

have and will continue to speak very

together with sustainable development

loudly to our commitment there.”

experts and results are audited externally for validation. Sustainability is, in J U LY 2 0 1 8

In any industry, the customer and the consumer are the real key driver and

FOOD & DRINK

“ Ultimately, our sustainability goals are but one step in a 100-plus year plan that will enable us to continue to excite our customers with amazing brands and do so in a sustainable way.”

– Richard White, Vice President of Procurement and Sustainability (Europe)

111

White believes that its not only the com- this changing consumer mindset and pany that has turned its attentions

White believes that this will prove king in

towards visibility and transparency

the delivery of the sustainability goals.

across the supply chain with regards to sustainability.

Consumers are changing and in this

“Our consumers connect with us through our brands and so we have a responsibility to utilise this touch point

modern world where more and more

and continue to innovate and push our

data is accessible in the palm of the

sustainability goals,” he says. “What we

hand, White feels that the consumers

as a business will continue to do in order

have become much more in tune

to achieve this is to activate and amplify

towards the sourcing of the ingredients

them through our consumer touch

or the raw materials in the products

points.”

they buy.

No more is this apparent than in the

To this end, AB InBev remains agile to “Buy a lady a drink” campaign, e u r o p e . b u s i n e s s c h i e f. c o m

ANHEUSER-BUSCH INBEV

launched through the Stella Artois brand. The campaign? For every multipack of Stella sold,

AB IN

AB InBev and water.org will provide six months of clean water to people in developing countries, where often women need to walk up to 6 hours to get clean water for their family.

SMART AGRICULTURE

Another strong example of AB InBev inno-

100% of our direct farmers are skilled, connected and financially empowered

vating and amplifying its brand, albeit in the United States, is through a partnership with Enel Green Power, an Italian renewable energy corporation. The switch to renewables for AB InBev’s US breweries alone corresponds to taking 112

48,000 passenger cars off the road every year. Budweiser bottles will feature a 100% Renewable Electricity symbol. This is to highlight to the consumer that AB InBev now purchases 50% of its entire electricity for its US breweries from wind power, which amounts to more than the total electricity

CIRCULAR PACKAGING

required to brew Budweiser in the US.

100% of our products will be in packaging that is returnable or made from majority recycled content

“It’s about showing to our consumers the fantastic work that we are doing behind our brands and our innovations towards delivering on our sustainability agenda,” says White.

“We need to do so in an authentic, credible

think we can prove that.”

With a global footprint, selling

way. The consumer will want to know and

beer in more than 100 countries,

want to feel sure that this is an authentic

AB InBev not only has a respon-

approach to sustainability, and we’re not

sibility to define its own

just paying lip service to it, and I

sustainability agenda but it also

J U LY 2 0 1 8

FOOD & DRINK

NBEV 2025 SUSTAINABILITY GOALS

WATER STEWARDSHIP 100% of our communities in high stress areas have measurably improved water availability and quality

113 CLIMATE ACTION 100% of our purchased electricity comes from renewable sources & 25% reduction of carbon emissions across our value chain

has a responsibility to set a

materials that it sources to produce its beers,

standard of best practice that

AB InBev recognises that it can and will play

others can follow.

a huge role in creating a better world for

From the consumers that it

today and tomorrow.

interacts with, the people that

“We must work with our suppliers and

work for the company, to raw

partner with NGOs and government organie u r o p e . b u s i n e s s c h i e f. c o m

ANHEUSER-BUSCH INBEV

sations,” he says. “The work that we are doing and what we have achieved should be shared with other companies in the industry because ultimately, it’s for the greater good.”

That partnership and collaborative effort is fundamental. As White notes, these sustainability goals are intentionally challenging, pushing AB InBev and the wider industry to double up on its efforts in order to create a better world.

Sustainability in isolation is not the key message here.

“The creating a better world part of our motto is increasingly important to us and to 114

our consumer,” adds White. “To be a part of a company that not only values sustainability but sees procurement as the spearhead to driving sustainability and innovation,I’m incredibly proud.”

“Ultimately, the sustainability goals are but one step in a 100-plus year plan that will enable us to continue to excite our customers with amazing brands and do so in a sustainable way.”

J U LY 2 0 1 8

FOOD & DRINK

BIO

Richard White is Vice-President for Procurement & Sustainability (Europe) at AB InBev Europe, the world’s largest brewer.

Richard joined AB InBev in 2001 having previously worked in Sales & Account Management roles with PepsiCo & Bass Brewers in the UK. After leading the On-Premise Trade Marketing team in France, Richard moved into AB InBev’s Global Procurement function in 2006 & spent the next 10 years leading a variety of strategic sourcing initiatives in Marketing & Commercial spend categories such as Media & Advertising, before being appointed to his current role in October 2016.

Richard is a UK citizen, holds an honours degree in Business Studies & French from the University of Plymouth, U.K, and currently resides in Brussels.

e u r o p e . b u s i n e s s c h i e f. c o m

115

BIO TECHNOLOGY GENERAL (BTG)

116

Transforming the biologic supply chain through digitisation

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S U P P LY C H A I N

TOTAL GLOBAL BIOLOGICS SPENDING HAS GROWN FROM $46BN IN 2002 TO A STAGGERING $221BN IN 2017. BTG’S HEAD OF SUPPLY CHAIN, ALON BEN DROR, DISCUSSES HOW ITS DIGITISED SUPPLY CHAIN WILL ENSURE THE COMPANY REMAINS A KEY PLAYER WORLDWIDE WRIT TEN BY

CATHERINE STURMAN

PRODUCED BY

HEYKEL OUNI

e u r o p e . b u s i n e s s c h i e f. c o m

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BIO TECHNOLOGY GENERAL (BTG)

0

ne of the first biologic companies in Israel, Bio Technology General (BTG) has become one of the most

highly respected businesses in the industry.

Housing significant expertise, the company supports startups in the country and is responsible for the development, production and marketing of growth hormone Somatropin, EUFLEXXA for osteoarthritis sufferers and Biolon for ophthalmic surgeries. The company also responsible for the production of new API for fertility treatment - Recovelle Driving high quality standards across its operations, BTG has been recognised by the 118

Israeli Ministry of Health for its commitment and unwavering focus on delivering high quality pharmaceuticals, which are commercialised in over 40 countries. The company is also set to see an investment of up to $15mn by its parent company, Ferring Pharmaceuticals, to expand its production capabilities in a mammalian cells operation for the production of fertility medicine.

“We are having a lot of audits from different regulatory authorities each year and are passing all of them with ease. We are very proud of our quality, systems and processes,” explains Head of Supply Chain, Alon Ben Dror.

Responsible for planning control, logistics, business technology, as well as BTG’s proJ U LY 2 0 1 8

“ We need to ensure medicine supplied in high quality, which means controlled shipment and logistics routes, making sure we have the right safety stock for each market”

­­ —

Alon Ben Dror, Head of Supply Chain

S U P P LY C H A I N

119

curement activities, encompassing

ble for getting demand from the

direct and indirect costs, Alon has

markets through the ERP system, in

spearheaded the transformation

order to create work plans for produc-

of BTG’s supply chain processes,

tion and quality control. The logistics

placing the patient (or customer)

group manages our warehouses, raw

firmly at the helm.

material, packaging material and our

“Sometimes the customer is the

general technical warehouse. Thirdly,

patient but it can be a hospital or clinic.

the business technology element

We need to ensure medicine is sup-

encompasses two different areas, our

plied in high quality, which means

control system and automation, the

controlled shipment and logistics

other being IT.”

routes, making sure we have the right safety stock for each market,” he says.

IMPLEMENTING LEAN PROCESSES

“Planning and control are responsi-

By combining its IT and supply chain e u r o p e . b u s i n e s s c h i e f. c o m

BIO TECHNOLOGY GENERAL (BTG)

operations, BTG has digitised its processes to become not only lean, but responsive to any issues or surges in demand across the supply chain.

Implementing a central automation system

by Emerson, the company has gained the ability to control many of its production processes and visually look at all data received to better understand various trends.

“We’ve connected our quality control system to our production system so processes are interfaced with each other and enable a quicker transformation of information and therefore better coordination and release 120

time,” reflects Alon.

“This has allowed us to further plan our logistics: how soon we can ship products, keep less inventory and reduce our cycle time. This is a big advantage for us. Our ERP system is also connected to the global organisation, so the market and global supply chain can see where things are in each point of time.”

DEVELOPING NEW PRODUCTS

Such is the company’s growth, its $15mn investment from Ferring will help BTG to expand its production capabilities, utilise new technologies and develop new production lines to promote the growth of its products and services. An area of increased J U LY 2 0 1 8

S U P P LY C H A I N

focus is the manufacturing of fertility treatment Rekovelle, which will cater to ongoing global demands.

“This product is going to be manufactured at several sites at Ferring, and we will also have a backup site in Switzerland. This FACT

• One of the first biotechnology companies in Israel • BTG supports the growing number of startups in the country • BTG develops, produces and markets growth hormone Somatropin, EUFLEXXA for osteoarthritis sufferers, Biolin for ophthalmic surgeries and Recovelle for fertility treatment • Recognised by the Israeli Ministry of Health for its commitment and unwavering focus on delivering high quality pharmaceuticals • The company has received a $15mn from its parent company, Ferring Pharmaceuticals to expand its production capabilities

investment will enable us to enhance the biotech process in bio reactors and the product is derived from mammalian cells,” says Ben Dror.

However, communication across the organisation will remain a global challenge across the business. Supplying over 40 countries, BTG has worked to build trust and transparency, and regularly meets with all involved parties to guarantee mutually beneficial relationships.

“It is important to be clear with our messages and to be very transparent with the information given to highlight that we are in this together,” Ben Dror adds.

“Another challenge is that in many cases we have only one supplier. It is therefore important for us to maintain this relationship with suppliers and make them partners. This creates an environment where the supplier will also experience success. The supplier is crucial to the success of our organisation.”

METHODOLOGY OF SAFETY

Additionally, in such a high cost, and highly e u r o p e . b u s i n e s s c h i e f. c o m

121

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S U P P LY C H A I N

123

regulated environment, it is imperative for the business to mitigate

Ben Dror.

“We also have an SQDEC meth-

ongoing risks. Processes at BTG

odology, which stands for safety,

have been designed on a methodol-

quality, delivery, employee and cost.

ogy of safety, starting at ground

This is the base of the KPI structure

level.

at the organisation. We start with

“The first thing is to design your

safety as its most important thing,

processes the right way. The sec-

then move to quality. After that, it’s

ond thing is implementing a high

my responsibility to deliver and

awareness of safety culture. We

make sure patients and customers

have a safety programme, named

receive goods on time in full. Last

‘Safety Through Leadership’, where

but definitely not least, we have the

we train our team leaders, all the

employees. It is crucial for the

managers in the organisation and

organisation to make sure we have

also some employees to put safety

the right people in the right posi-

as part of their leadership,” notes

tions with a proper development e u r o p e . b u s i n e s s c h i e f. c o m

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S U P P LY C H A I N

“ We’ve connected our quality control system to our production system so processes are interfaced with each other and enable a quicker transformation of information and therefore better coordination and release time” ­­ —

Alon Ben Dror, Head of Supply Chain

125

plan. If we are able to succeed with the

operations, BTG will continue to house

four elements then the fifth, which is

significant expertise and remain a key

cost, will go down naturally.”

player in the biotechnology market.

Factoring in safety as part of its lean

“I see new ideas every day while we

culture, BTG has significantly reduced

are moving forward. BTG management

the number of risks across its opera-

is also focusing on new opportunities,”

tions and undertakes a number of

he concludes. “And with a strong

activities to protect the environment,

backup that we got from Ferring man-

such as filtering out harmful chemicals

agement, I believe that the future for

and neutralising materials before they

BTG is to keep growing and to be a

are thrown into drainage systems.

leading entity within the Ferring global

Delivering what Ben Dror describes

organisation.”

as “the full package” across its

e u r o p e . b u s i n e s s c h i e f. c o m

EVOBITS

Navigating the complexities of crypto mining 126

FOLLOWING A SHIFT TOWARDS HOSTING SITES AND DATA CENTRES FOR THE CRYPTO MINING WORLD, EVOBITS I.T. LOOKS SET TO CAPTURE THE EUROPEAN MARKET DALE BENTON PRODUCED BY LEWIS VAUGHAN WRITTEN BY

J U LY 2 0 1 8

CONSTRUCTION

127

e u r o p e . b u s i n e s s c h i e f. c o m

EVOBITS

T

echnology has always been a difficult beast.

As the world continues

to become more and more defined by technological innovation, industry sectors all over the world face the challenge of navigating this complex and challenging space.

In recent years, the eyes of the world have turned towards cryptocurrency, and in turn crypto mining. More and more organisations are investing 128

money into blockchain, bitcoin and other forms of digital currencies, but this is still a relatively unknown realm.

This is where Evobits Informa-

“But last year the company evolved and Evobits IT branched into the actual mining of

tion Technology SRL comes in.

cryptocurrency itself but doing it a little dif-

Created in 2014 on the back of

ferently.”

a spike in demand for cryptocur-

Silviu has spent his entire career in the IT

rencies, Evobits IT worked

and technology space, working specifically

primarily in programming the

in programming and IT consulting. Evobits IT

systems and solutions behind

is the second company Silviu has founded,

cryptocurrencies.

the first being centred around systems pro-

“We created different crypto-

gramming before moving into the blockchain

currencies for clients and different

programming and cryptocurrency business.

software for cryptocurrency min-

Where Evobits IT intends to act differently

ers,” says Silviu C. Balaci, CEO

and disrupt this growing market is in combining

of Evobits IT.

its hosting with its software abilities, allowing

J U LY 2 0 1 8

CONSTRUCTION

“ W E’RE NOT JUST BUILDING WAREHOUSES AND THROWING A BUNCH OF GEAR IN THERE,” HE SAYS. “HOSTING CRYPTO MINERS IN A PROFESSIONAL DATA CENTRE AND ALLOWING FULL CONTROL OF THEM IS THE DIFFERENCE. WE BUILD SOME OF THE MOST EFFICIENT DATA CENTRES IN THE WORLD BY USING INNOVATIVE TECHNOLOGIES SUCH AS THE NEW INDIRECT EVAPORATIVE COOLING SYSTEM FROM VERTIV (A TECHNOLOGY USED BY BIG NAMES IN THE INDUSTRY: MICROSOFT)” — Silviu C. Balaci, CEO of Evobits

129

customers to receive full control and trans-

tures at under 65C, we have an

parency. Evobits IT builds real, physical data

average GPU temperature of

centres and hosts crypto miners within them.

under 50C and we do this while

“We’re not just building warehouses and

keeping the PUE under 1.10. We

throwing a bunch of gear in there,” he says.

also offer full miner control: our

“Hosting crypto miners in a professional data

clients decide what to mine and

centre and allowing full control of them is the

where to mine, they can even

difference. We build some of the most effi-

decide the software that they

cient data centres in the world by using

want to run. There is no other

innovative technologies such as the new Indi-

crypto mining operation that

rect Evaporative Cooling System from Vertiv

does this in the world.”

(a technology used by big names in the

Cryptocurrency is a commod-

industry: Microsoft). Where most mining

ity, and like any commodity, it’s

operations struggle to keep GPU tempera-

cyclical in nature. The company e u r o p e . b u s i n e s s c h i e f. c o m

behind the cloud data centers efficiency solutions innovative design

We create, design, innovate, deliver and maintain exquisite complete solutions for your data center Why INNOVA? Because we have the knowledge, experience, expertise, best certified and trained specialized personnel to: design, deliver and maintain data centers and technical rooms, based on the latest technology and offering tailored solutions for a successful project.

104-106 Stirbei Voda Street, district 1, 010119, Bucharest, Romania tel +4021 420 02 22 fax +4021 420 00 32 e-mail office@innovaengineering.ro

CONSTRUCTION

was founded off the back of a spike in cryptocurrency, but Silviu admits that the cyclical nature is something that he and Evobits IT must be prepared for.

This is where Evobits IT can work closely with clients, as this is still a growing and somewhat unknown technology. Silviu feels that people and companies are investing into cryptocurrency without understanding the technology behind it.

“Everyone cared only about the cryptocurrency side of things and the value of it,” he says. “Nobody was really interested in the technologies behind it. At Evobits IT, we work to make clients understand that there is much more to this crypto-world than just the digital coin.”

Silviu points to a number of companies that have almost redefined their strategies to incorporate blockchain or cryptocurrency, going as far as adding the two into company names in order to tap into this booming market.

This has changed how Evobits IT works

“IT’S BOTH SCARY AND BEAUTIFUL. THERE IS LITERALLY NOTHING STOPPING EVERYTHING FROM CHANGING TOMORROW BUT WE ARE WELL POSITIONED, AND THAT’S BECAUSE WE HAVE REAL DATA CENTRES AND A STRONG DEVELOPMENT TEAM BEHIND IT” — Silviu C. Balaci, CEO of Evobits

with companies. No longer is it a case of just explaining what the technology behind cryptocurrency and crypto mining is, now Evobits works with customers to help them understand that the technology is no silver bullet and it should be used when there is a clear business case.

“You cannot use it for everything just because e u r o p e . b u s i n e s s c h i e f. c o m

131

EVOBITS

it’s now in your company name, or strategy,” he says. “It’s just not made for that.”

As Evobits IT continues to develop the programming technology behind cryptocurrencies, currently working on a beta stage payment system for the transfer of funds, the company is significantly expanding its data centre capabilities.

Evobits IT currently has a couple of data centres finished and operational: a 1 MW facility and a highly efficient 3.5 MW facility, for a total of 4.5MW. By the end of this year, Evobits IT hopes to expand this further by adding an extra 15 MW before looking to 132

build another facility in excess of 20 to 30 MW, but this is something that Silviu admits is “further down the line”.

As with most data centres all over the world, location is king. “Location can be split into two important areas – proximity to utilities such as power stations and fibre for network connectivity,” says Silviu.

“But we also need to be located near a major city. This helps bring in a workforce and if it’s near an international airport, this opens new doors in terms of attracting clients.”

Attracting clients is crucial. Silviu notes that the cryptocurrency market is very opaque, meaning it is susceptible to scams. To this end, Evobits IT will invite potential partners and clients to its data centres in order to J U LY 2 0 1 8

FACT

Extremely efficient data centres allowing us to achieve a PUE of under 1.10.

Very low temperatures for the GPUs: an average of under 50C. Individual Miner control with auto-balancing software: if a miner goes offline, another is automatically assigned to take its place.

Highly efficient mining system: from custom BIOS that maximizes power efficiency to custom mining software that lowers “uncles rate” to under 15% (the average is over 25%)

CONSTRUCTION

dispel any fears and to highlight what the company does that no other currently claims to do. “A lot of important potential partners already visited us: nVidia, AMD, XFX, Sapphire, Gigabyte, Vertiv. When they see what we build and how we do things their tone changes completely, it simply opens a lot of doors that otherwise would have been shut,” says Silviu.

Evobits has struck a key strategic partnership with Innova Engineering SRL, a Romanian company which provides consulting, design, implementation and maintenance across all ranges of IT (hardware and software) and telecommunication equipment, turnkey data centre execution.

133

Through this partnership, in which the company has already built a 3.5 MW data centre in Romania (which is almost the entire yearly data centre market share of Romania), Evobits IT has been able to cement its status as key player in the data centre space.

“When we first started out in data centres, nobody wanted to talk to us because we had no proven experience in this market,” says Silviu.

“Everybody wanted to take advantage of us and nobody was really interested in building a long term partnership, they were just interested in short-term gains.”

“But working with Innova on our second Romanian project, everything changed. There are many challenges in what we do because e u r o p e . b u s i n e s s c h i e f. c o m

EVOBITS

we always operate our data centres to

is keen to note that the company is

maximum capacity, so everything needs

finely positioned should there be

to be properly planned: from cooling

a sudden shift in the volatile market

capacity to power distribution to air

of cryptocurrency.

volume. It’s extremely important to have

Silviu notes that even as a man with

partners like Innova, ones who will look

such an extensive history in the tech-

at you as a long-term partner and will

nology space, there is always an

join you along this growth journey.”

uncertainty surrounding the future

As Evobits IT looks to the future, with a number of data centre facilities already

134

of cryptocurrency.

But it’s not something he fears. “It’s

planned for construction and to come

both scary and beautiful,” he says.

online over the next few years, Silviu

“There is literally nothing stopping eve-

“BUT WORKING WITH INNOVA ON OUR SECOND ROMANIAN PROJECT, EVERYTHING CHANGED. THERE ARE MANY CHALLENGES IN WHAT WE DO BECAUSE WE ALWAYS OPERATE OUR DATA CENTRES TO MAXIMUM CAPACITY, SO EVERYTHING NEEDS TO BE PROPERLY PLANNED: FROM COOLING CAPACITY TO POWER DISTRIBUTION TO AIR VOLUME. IT’S EXTREMELY IMPORTANT TO HAVE PARTNERS LIKE INNOVA, ONES WHO WILL LOOK AT YOU AS A LONG-TERM PARTNER AND WILL JOIN YOU ALONG THIS GROWTH JOURNEY” — Silviu C. Balaci, CEO of Evobits

J U LY 2 0 1 8

CONSTRUCTION

rything from changing tomorrow

separates us from others: if something hap-

but we are well positioned, and

pened, it wouldn’t kill us and we wouldn’t put

that’s because we have real data

a lock on it and walk away. We invest more

centres and a strong develop-

today to have the security of tomorrow, no

ment team behind it.

matter what tomorrow will bring.

“If everything did crash tomor-

“Having highly efficient physical data cen-

row and cryptocurrency vanished

tres allows us to, with minimal investment,

entirely, we can turn our atten-

open up the door to another sub sector of

tions to repurposing our data

this market, and that gives us an incredible

centres into colocation hubs or

edge moving forward.”

data processing centres.

“That’s what’s key and what

135

e u r o p e . b u s i n e s s c h i e f. c o m

LOTTE WEDEL PERFECTING THE ART OF CHOCOLATE MAKING

Championing its rich heritage and embracing innovation, LOTTE Wedel has firmly cemented itself as the nation’s favourite chocolatier WRITTEN BY

LAURA MULLAN PRODUCED BY

BROGAN BAGGOTT

nly chocolate made with both innovation and passion can compete in today’s competitive industry, and perhaps this is how chocolate giant Wedel has emerged as one of the strongest brands in the Polish market today.

By tapping into the nostalgia associated with the chocolatier, Marketing Director Monika Kolano-Wysokińska says that Wedel is a name which is familiar to every Polish person today.

O

LOTTE WEDEL

138

“I would say the core vision of Wedel is that we want our consumers to feel childlike joy,” she adds, “because that’s exactly what chocolate is about.”

As the oldest chocolate brand in the country, Wedel has won people’s hearts and business for generations since it was first founded in 1851.

Over its rich history, the firm’s passion for the art of chocolate making has been evident. Although the company has grown, it seems the values instilled by founder Emil Wedel are still very present today.

“We have a long tradition at Wedel and today we are one of the most recognised companies in the market,” says Chief Operating Officer Sławomir Kluszczyński.

“Our goal to be the best, most beloved company for our customers is in line with the vision of our parent company, LOTTE Group, as well as our founder.

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“WEDEL’S STRENGTH LIES IN HOW WE CONTINUOUSLY IMPROVE, INNOVATE AND CHALLENGE THE MARKET” — Sławomir Kluszczyński, Chief Operating Officer

FOOD & DRINK

139

“When the company was first founded, Emil Wedel looked to hire people with passion, and this is how the company still operates today. We are passionate people who love the product, who love the history of the company, and who act as owners and entrepreneurs so that we can contribute to the company’s history and its present.

“For me, this is what Wedel is about: quality, innovation, being

beloved by our consumers, but also the people behind the company,” he adds.

Amidst fierce competition, it’s become important for chocolate makers to be innovative; yet it’s equally important to respect the art behind the craft.

As such, whilst Wedel has brought unique products and methods to innovate the market, it has also championed its legacy – its wafer cakes, for instance, are hand decorated today just as they have been for almost a century.

Striking a balance between the company’s e u r o p e . b u s i n e s s c h i e f. c o m

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BIO

heritage and its contemporary innovation has been key to its success.

When modernising, the Polish firm has made significant investments to maximise its quality, efficiency, process, and product reach.

“Our main target is to produce innovative and safe products and to also ensure the safety of our people,” Kluszczyński says.

“Investment is vital for this.

“The second pillar of our investments is consumer need, so we are looking for the new technologies and new innovations where we can be first to market to meet our consumers’ needs.

“Finally, we are also investing in improving our process and efficiency,” he adds. “We want to deliver our products in a way where we are maximising our capacity and reducing overhead costs.”

Nowhere can this investment be seen better than the company’s famous factory, which has stood in the Polish capital of

Sławomir Kluszczyński Chief Operating Officer

Manufacturing and supply chain professional with 20 years of experience. Focused on continuous improvement, operational excellence and effective leadership.

Kluszczyński graduated from the Warsaw University of Technology, Mechanics of Energetics and Aviation faculty. He has also obtained MBA degree from the Warsaw University/University of Antwerp. He has gained his professional experience in companies such as: Master Foods, L’Oreal, GlaxoSmithKline, Avon and Cadbury Wedel, getting wide manufacturing and supply chain expertise. Currently, Kluszczyński holds the position of Chief Operating Officer in Lotte Wedel, his main responsibilities include investments as well as supply chain and production processes’ management.

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Warsaw for over 80 years.

“I think what makes Wedel unique is the fact that that the company has this long tradition and heritage which is seen by our factory, located in Warsaw,” KolanoWysokińska highlights.

“The facility has been here since 1931 and we’re still at the same place, producing the same high-quality products.”

Wedel has revamped the company’s historic factory and, in doing so, it has boosted its capabilities.

“This investment was key to promote the growth of our business,” explains Kluszczyński. “We are growing intensively and so investing in our factory was necessary to adjust our logistics capabilities. Part of this investment involved enhancing the production space and also investing in new lines in the factory.”

“We invested in the production lines of some of our most important brands like Ptasie Mleczko,” adds Kolano-Wysokińska. “We invested in the machinery which decorates Ptasie Mleczko with patterns so we could produce limited edition products dedicated to special occasions like Valentine’s Day Easter and Christmas.

“That investment is very important because it will help us to increase our marJ U LY 2 0 1 8

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1851 Year founded Wedel exports to over 25 countries worldwide, but USA, Canada, and the UK are currently its key markets

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“I WOULD SAY THE CORE VISION OF WEDEL IS THAT WE WANT OUR CONSUMERS TO FEEL CHILDLIKE JOY” — Monika Kolano-Wysokińskai, Marketing Manager

ket share in the chocolate-covered marshmallows sector, retain our leading position in the market, and set new trends.”

Championing lean and kaizen approaches to business, Wedel has strived to maximise and optimise the use of its assets.

Technology has undoubtedly played a key role in this.

“We’re looking at the most modern trends within Industry 4.0,” says Kluszczyński. “We are exploring the use of process

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monitoring tools and building management systems with a focus on efficient use of the energy and facility costs.

“We are also looking at technologies that can standardise our quality parameters and innovations which are focused on efficiency improvement like automation.”

This innovative perspective doesn’t just apply to the firm’s machinery and facilities, it is also interwoven throughout Wedel’s eclectic portfolio of products.

From chocolate bars and pralines to cookies and Ptasie Mleczko, Wedel’s iconic signature has permeated the chocolate market for decades, anticipating new consumer trends before many of its competitors.

“We have our traditional portfolio that is targeted towards consumers that have loved Wedel for years, but we are also introducing new

Monika Kolano-Wysokińska Marketing Manager

Marketing Director at LOTTE Wedel with over 20 of experience in the FMCG industry. Experienced in working in international ICI business, Orkla Foods and investment funds such as IKA Investment Partners as part of her work for Agros Nova Ltd. Kolano-Wysokińska has developed brands such as Kotlin, Superfish, Łowicz, Fortuna, Krakus, Dr. Witt, Tarczyn. Since 2005 she holds the position of marketing director in the rank of board member. At Wedel since April 2016, Kolano-Wysokńska is responsible for marketing and R&D and manages a team of over 40 people.

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“I’D SAY THE EXPORT MARKET IS ALSO BECOMING MORE AND MORE IMPORTANT. WE EXPORT TO OVER 60 COUNTRIES WORLDWIDE, WITH REGIONS LIKE THE UK, USA AND CANADA BEING OUR MOST IMPORTANT MARKETS” — Monika Kolano-Wysokińskai, Marketing Manager

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products that are targeted towards younger consumers that prefer sweeter tastes,” explains Kolano-Wysokińska.

“We have also seen how strong the health and wellness trend has become, both in Poland and abroad,” she adds.

“This is a great opportunity for Wedel so we have tried to tap into this trend by creating a new bitter chocolate range (80% cocoa solid), for example, which has a higher content of cocoa and is a natural source of magnesium.”

Regardless of the product, however, one thing remains consistent at Wedel – its quality.

Only sourcing high-grade cocoa beans from Ghana, KolanoWysokińska adds that it’s this superior taste which makes Wedel a national favourite.

“The quality is hard to beat,” she says. “Our customers have high expectations and so quality is always a top priority for us.

For example, when it comes to cocoa, we only source cocoa

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by LOTTE Group

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from Ghana. No compromise.

This means our customers can depend on the quality of our products.”

This appreciation for quality and innovative mindset is in keeping with Wedel’s parent company, LOTTE Group.

With a shared strategic vision, the Korean-Japanese conglomerate has invested in the chocolatier’s brand and capabilities to help unlock its potential.

“We are very proud to be a part of LOTTE Group because e u r o p e . b u s i n e s s c h i e f. c o m

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Click here to watch ‘Loteria Ptasie Mleczko®’

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the two companies complement each other,” notes Kluszczyński.

“They both have similar visions, they both are beloved companies and they are both very focused on innovation. We feel that our owner understands the potential of our brand and after only seven years of cooperating together, we see that this partnership has been very fruitful.”

The chocolate industry is a challenging one to be in with growing competition, capacity constraints, and cost pressures more prevalent than ever.

Wedel has deftly tackled these challenges, carving out its own pioneering path in the Polish market and setting

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its eyes further afield through its growing international export operation.

“We see plenty of opportunities, both in the domestic market as well as in the export market,” Kluszczyński says.

“Looking only at Poland, especially last year, we saw tremendous growth with the Polish confectionery market growing 7%.”

“I’d say the export market is also becoming more and more important,” adds KolanoWysokińska. “We export to over 60 countries worldwide, with regions like the UK, USA and Canada being our most important markets.

“Russia is definitely a market that we would like to explore further as it has similar tastes to the Polish market.”

Keen to cement the company’s brand, Wedel also has its own retail spaces in the market.

The Polish firm is proud of its rich history and heritage and nowhere is this manifested bet-

“WHEN THE COMPANY WAS FIRST FOUNDED, EMIL WEDEL LOOKED TO HIRE PEOPLE WITH PASSION, AND THIS IS HOW THE COMPANY STILL OPERATES TODAY” — Sławomir Kluszczyński, Chief Operating Officer

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ter than these exclusive chocolate shops. With around 27 retail sites and additional franchises, these chocolate shops provide a unique experience for Wedel’s customers, bringing the chocolatiers vision of ‘childlike joy’ to life.

“Our retail sites are perhaps at the foundation of our business,” Kluszczyński says. “You can see the magic behind the company and it brings you back to your childhood

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because you can smell the chocolate, you can see our pralines being made, you can drink our chocolate and get special products for special occasions.

It’s something really special.”

Marrying the company’s innovative thinking and renowned brand, Wedel has gone from strength to strength through the decades. Kluszczyński says this success wouldn’t be possible without the company’s passionate team.

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“We have over 1,000 employees and we are still growing,” he says. “There are many development opportunities for our employees. We aim to grow our own people by trusting them and giving them ownership of their tasks.

“We create an environment which promotes a passion for improvement, a passion for

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delivery and therefore people stay with us for many years.

We are proud to have such dedicated and engaged employees at Wedel.”

Now, looking forward to the future, the chocolatier plans to continue the company’s legacy, by championing the tradition of the past yet embracing change.

“We are a very dynamic company and I think in the next five to 10 years Wedel will J U LY 2 0 1 8

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be a very different company in many aspects,” Kluszczyński says. “We want to continue to be the most beloved company in the Polish market but we also want to expand and grow in other markets.

“Today, we are also focusing on improving our margins, cost base and production capabilities,” he continues. “We will also need to transform our supply chain and enter new

product categories to support our growth.

This all has to be in line with our strategy to develop our brand and get better premiumisation in the market.

“We definitely will have to be brave and embrace change,” he concludes. “Many of the changes in front of us will transform what we have inherited from the past but Wedel’s strength lies in how we continuously improve, innovate and challenge the market.”

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Just in time to say goodbye.

Keeping you in the air. The best time to develop services for tomorrow’s technology is today. That’s why we’re doing that now — along with integrating new models, materials and technologies in our portfolio as quickly as possible. Our goal is to keep your aircraft off the ground, tomorrow as well as today. So let the future arrive: our services will be waiting. Talk to us.

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